EcoSynthetix (ECO) Q2 2025 earnings summary

Executive summary

• Net sales rose 57% year-over-year to $5.0 million in Q2 2025, driven by 50% higher volumes and a 7% increase in average selling price, with growth from key strategic accounts in pulp, wood composites, and tissue.

• Achieved positive adjusted EBITDA of $0.2 million in Q2 2025, up $1 million from last year, and positive on a last twelve months basis, reflecting operational improvements.

• Book of business expanded with significant new and repeat orders, including a $0.8 million SurfLock™ order and two new commercial tissue accounts.

• Maintained a strong balance sheet with $30.7 million in cash and term deposits as of June 30, 2025.

• Net income reached $0.1 million in Q2 2025, reversing a net loss of $0.7 million in the prior year quarter.

Financial highlights

• Q2 2025 net sales were $5.0 million, up from $3.2 million in Q2 2024; gross profit increased 66% to $1.4 million, with gross margin improving to 28.4%.

• SG&A expenses decreased to $1.2 million, and R&D expenses fell to $0.4 million, with R&D as a percentage of sales at 9%.

• Adjusted EBITDA for Q2 2025 was $0.2 million, compared to a loss of $0.8 million in Q2 2024.

• Cash and term deposits totaled $30.7 million at quarter-end.

• Shareholders' equity stood at $38.6 million as of June 30, 2025.

Outlook and guidance

• Optimism for continued growth in pulp, wood composites, and tissue, with a strong pipeline and expanding distribution partnerships.

• Targeting $100 million+ in sales, leveraging momentum across all major end markets.

• Expects additional SurfLock™ orders and ongoing DuraBind™ trials to support customer carbon footprint targets.

• Focus remains on converting high-value prospects and expanding product applications.