EnWave ends 2025 with increased revenue, positive EBITDA

EnWave closed 2025 with stronger top-line and a return to positive adjusted EBITDA as machine sales and expanding royalty streams pushed Q4 revenue to C$6.2m (C$3.6m a year earlier) and Q4 adjusted EBITDA to C$1.4m (C$0.45m); full-year revenue rose to C$13.8m from C$8.2m and adjusted EBITDA turned positive at C$0.3m versus a C$1.5m loss in 2024. The quarter featured commissioning of one large‑scale and six small‑scale machines, sale of a refurbished 120kW unit and fabrication of two large machines, and the company signed multiple equipment and license deals with partners including Milne MicroDried and Shinyway International. While base royalties increased (31% in Q4; 14% for the year), total royalty receipts fell modestly (Q4 total royalties C$0.48m, down 25%) due to a Central American partner not renewing exclusivity; gross margins edged up (Q4 41%; FY 34%) even as SG&A including R&D rose to C$5.6m. Management also completed a fully subscribed private placement of 7.5m shares at C$0.40, raising C$3m to support ongoing sales and marketing and machine deployment.

Analysis

EnWave reported a materially stronger finish to 2025 with Q4 revenue of C$6.2 million versus C$3.6 million a year earlier and full-year revenue of C$13.8 million compared with C$8.2 million in 2024; adjusted EBITDA returned to positive territory at C$1.4 million in Q4 and C$0.3 million for the year versus a C$1.5 million loss in 2024, driven explicitly by higher machine sales. The quarter included commissioning of one large-scale and six small-scale machines, sale of a refurbished 120kW unit, and fabrication of two large-scale machines under contract, and management disclosed multiple equipment purchase and license agreements with partners such as Milne MicroDried and Shinyway International. Base royalties increased 31% in Q4 to C$0.48 million and 14% for the year to C$1.8 million, but total royalty revenue fell 25% in Q4 to C$0.48 million due to a Central American partner not renewing exclusivity, highlighting revenue sensitivity to partner renewals. Gross margins edged up (Q4 41%, FY 34%) even as SG&A including R&D rose to C$5.6 million; the company completed a fully subscribed private placement of 7.5 million shares at C$0.40, raising C$3.0 million in gross proceeds, which provides incremental liquidity into 2026 but warrants monitoring against elevated operating spend.

Key Decisions for Investors

• Consider a measured accumulation on share-price weakness given demonstrable revenue and EBITDA improvement driven by machine sales and new license agreements, but size exposure conservatively
• Monitor upcoming royalty renewal cadence and partner concentration risk closely, as the Q4 decline in total royalties was tied to a single partner not renewing exclusivity
• Track SG&A trends and cash runway after the C$3.0 million private placement, verify that operating cash flow and capital needs remain aligned with the increased sales and deployment cadence
• Reassess position if subsequent quarters do not show sustained royalty stability or if gross margins deteriorate despite higher machine sales