New Horizon Aircraft (HOVR) Q2 2026 earnings summary

Executive summary

• Significant progress on the hybrid-electric Cavorite X7 eVTOL, with prototype assembly targeted for 2026 and initial testing in early 2027.

• Focused on all-weather, IFR-capable aircraft for both civilian and military markets, with plans to sell aircraft and license technology.

• Strategic partnerships with Pratt & Whitney and McLaren Applied to advance propulsion and systems integration.

• Awarded a $10.5 million non-dilutive INSAT grant for sustainable aviation technology.

• Engineering team doubled year-over-year, with further expansion planned to support development.

Financial highlights

• Ended the quarter with over $24 million in cash, the strongest liquidity position to date.

• Net loss of $8.7 million for the quarter and $19.6 million for the six months ended November 30, 2025, driven by higher R&D and prototype development costs.

• Raised $19.1 million through equity sales and $3.3 million from warrant exercises in the six months.

• Total operating expenses for the quarter were $5.1 million, with R&D costs of $2.6 million and general/admin expenses of $2.5 million.

• Shareholders’ equity rose to $14.5 million from $2.6 million over the six-month period.

Outlook and guidance

• Targeting completion of the full-scale X7 prototype by end of 2026, with initial ground testing in early 2027.

• Sufficient capital runway to achieve development and testing milestones through 2026, but additional financing will be required for long-term objectives.

• Certification work underway, leveraging expertise from Certification Center Canada.

• Operating costs expected to double over the next year as development and certification ramp up.

• Focused on disciplined execution and advancing toward commercial operations before 2030.