EcoSynthetix (ECO) Q4 2025 earnings summary

Executive summary

• Achieved 9% sales growth in Q4 and 12% for FY 2025, reaching $20.8 million, with record volumes in pulp, tissue, wood composites, and personal care; strategic markets now comprise over 70% of business, up from 40% in 2021.

• Reported first full year of positive Adjusted EBITDA ($0.4 million), an improvement of over $1.3 million from 2024, with Q4 Adjusted EBITDA at $0.5 million.

• Achieved climate positive operations in 2025, avoiding more than 125% of associated carbon emissions.

• Eight new SurfLock commercial accounts won in 2025, with 15 lines running globally and expanded commercial reach in Europe.

• Strategic market sales permanently surpassed graphic paper sales, with legacy graphic paper now less than 30% of business.

Financial highlights

• Q4 net sales: $5.9 million (up 9% YoY); annual sales: $20.8 million (up 12% YoY).

• Q4 gross profit: $2.0 million (up 27% YoY); annual gross profit: $6.0 million (up 14% YoY).

• Gross margin: 38.1% in Q4, 33.6% for the year (adjusted); reported gross margin 33.9% in Q4 and 29.0% for the year.

• Adjusted EBITDA: $0.5 million in Q4 and $0.4 million for the year, compared to $0.1 million and a loss of $0.9 million in 2024.

• Cash and term deposits at year-end: $29.6 million.

Outlook and guidance

• Strong pipeline in all strategic markets supports continued growth in 2026, with management focused on expanding commercial strategy and product adoption.

• Positive Adjusted EBITDA expected to continue and grow as top-line increases, with most incremental margin falling to the bottom line.

• Revenue growth rate expected to exceed OpEx growth through 2026.

• No formal guidance provided, but management remains committed to the $100 million top-line target.

• Expanded production capacity to more than 5 times current volume.