Aluula Composites (AUUA) investor relations material

Executive summary

• Achieved record Q2 2026 revenue of $3.06 million, up 94% year-over-year, with gross margins at 44% within the expected range.

• Performance Outdoor remained the largest sales channel, while Commercial Industrial's share increased, reflecting diversification.

• Delivered materials to 12 new customers and supported multiple brand partner product launches, expanding the sales pipeline.

Financial highlights

• Q2 2026 sales reached $3,056,473, up from $1,573,677 in Q2 2025; YTD Q2 2026 sales were $5,387,399, up 90% year-over-year.

• Gross margin for Q2 2026 was 44% (42% in Q2 2025); YTD gross margin held steady at 43%.

• Net loss from continuing operations for Q2 2026 was $475,493, compared to $343,381 in Q2 2025; YTD net loss was $825,698, up from $695,059.

• Operating expenses doubled in Q2 2026 and rose 76% YTD, mainly due to higher salaries, G&A, marketing, and R&D.

Outlook and guidance

• Entering H2 2026 with record sales, stable margins, and a strengthened balance sheet after February 2026 financing.

• Fiscal 2026 is positioned as an investment year, focusing on capacity expansion and scalable growth for 2027 and beyond.

• Vancouver facility lease signed for October 2026, aiming to expand production capacity tenfold; near-term financials may be impacted by investment phase.

• Continued focus on gross margin discipline and controlled operating expenses during expansion.