Ecosynthetix Inc.

Net sales were $5.8 million in Q3 2025, up 11% or $600,000 from Q3 2024, with higher volumes of $500,000 or 10% driving the increase. Gross profit was $1.7 million, unchanged year over year, and gross margin was 34.2% versus 36.8% in the prior-year quarter, mainly due to higher manufacturing costs from product mix. SG&A was $1.8 million versus $1.5 million last year, R&D was $390,000 versus $560,000, and adjusted EBITDA was $200,000 versus $360,000. Cash and term deposits were $30.4 million at September 30, 2025, down from $32.2 million at December 31, 2024. For the first 9 months of 2025, the company spent $1 million to repurchase and retire 346,000 shares and increased working capital, including $1.2 million higher inventory. No explicit next-quarter or full-year numeric guidance was given; management instead pointed to continued momentum in pulp, tissue, wood composites and personal care and said it is very close to consistently reporting positive EBITDA going forward.

Jeff MacDonald said the quarter reflected a shift toward higher-quality revenue as EcoSynthetix has largely diversified away from legacy graphic paper into pulp, tissue, wood composites and personal care. He emphasized repeatability in tissue, growing traction at the global pulp customer, and continued progress in wood composites and Dow-led personal care, calling the company’s current position an inflection point for sustainable longer-term growth. His tone was notably confident and constructive, though he acknowledged that visibility on the pulp ramp is still limited because it is an early-stage, large-scale rollout.

Robert Haire said Q3 net sales were $5.8 million, up 11%, with gross profit of $1.7 million and gross margin of 34.2% versus 36.8% last year, as product mix pushed manufacturing costs higher. He noted SG&A increased to $1.8 million from $1.5 million, while R&D declined to $390,000 from $560,000, and adjusted EBITDA was $200,000 versus $360,000. He also said the company ended September with $30.4 million of cash and term deposits, had invested $1 million in share repurchases during the first nine months, and remained disciplined on cash despite higher inventory and working capital.

Analysts focused on the pace and visibility of the pulp ramp, asking what the customer’s added resources mean, whether other players are taking notice, and how quickly volumes could build. Management said the customer is expanding education and support around hardwood fiber, that other players have shown early interest, but that visibility remains limited because the project is still early and large-scale. Questions also centered on tissue/distributor momentum and Dow; management said trial activity is up, tissue wins are now coming quarterly, and Dow’s contribution is becoming meaningful while still starting from a small base. On wood composites, Jeff said the key customer is fully committed to its 2030 goals, and he estimated the current opportunity at roughly 17 lines and $50 million to $60 million of DuraBind products.