EcoSynthetix (ECO) Q3 2025 earnings summary

Executive summary

• Net sales increased 11% year-over-year to $5.8 million in Q3 2025, driven by strong demand and new commercial wins in pulp, tissue, wood composites, and personal care end markets.

• Strategic diversification away from legacy graphic paper has led to higher quality revenue and improved business composition.

• Positive adjusted EBITDA in 4 of the last 5 quarters, with Q3 2025 at $0.2 million.

• Key accounts and partnerships, including with Dow and RNM Group, are accelerating adoption and market penetration.

• Major global pulp manufacturer tripled SurfLock™ production run-rate, with new wins in tissue and expanded use in personal care.

Financial highlights

• Q3 2025 net sales were $5.8 million, up $600,000 (11%) from Q3 2024, primarily due to higher volumes.

• Gross profit for Q3 2025 was $1.7 million, with gross margin at 29.9%–34.2%, down from prior year due to higher manufacturing costs.

• Adjusted EBITDA was $0.2 million in Q3 2025, down from $0.4 million in Q3 2024, but positive for four of the last five quarters.

• SG&A expenses rose to $1.8 million from $1.5 million year-over-year, mainly due to higher salaries and maintenance.

• Cash and term deposits totaled $30.4 million as of September 30, 2025, supporting a strong balance sheet.

Outlook and guidance

• Management expects continued demand growth in core end markets, with a focus on sustainable, profitable long-term growth.

• Significant opportunities identified in pulp and wood composites, each with potential to exceed $50 million in annual revenue per key account.

• Targeting $100 million+ in sales, leveraging momentum across wood composites, pulp, tissue, packaging, and personal care.

• Anticipates ramp-up in volumes and broader market adoption as leading customers drive industry change.

• Forward-looking statements highlight risks and uncertainties, including capital allocation and new product development.