NEXE Innovations more than doubles second quarter revenue
Published: 08:42 30 Jan 2025 EST
NEXE Innovations Inc (TSX-V:NEXE, OTC:NEXNF) more than doubled its revenue during the second quarter as new partnerships began generating repeat orders.
For Q2, revenue increased to about $71,000 from about $31,000, reflecting a partial month of production as new partnerships were signed in mid-to-late November.
NEXE said the cost of goods sold rose to about $226,000, including non-cash depreciation expenses while selling, general, and administrative expenses declined to $906,000 due to reduced marketing, professional fees, and compensation.
Its net loss slightly widened to $1.65 million from $1.61 million in the year-ago quarter.
NEXE exited the second quarter with a cash position of $14.5 million and minimal debt of $0.5 million, related to a government loan.
The company said its recent partnerships with ecoBeans, Bridgehead Coffee, and EKOCUPS are strengthening market penetration across retail, office coffee services, and e-commerce. All three partnerships are driving repeat orders.
Progress on its next-generation compostable Nespresso OriginalLine pods and advancements in proprietary resin technology are expected to lead to new opportunities outside of the coffee market.
"This quarter marks a pivotal moment for NEXE as we believe our efforts are beginning to translate into tangible revenues, driven by increasing demand from our recently announced partnerships," NEXE president Ash Guglani said in a statement.
"We remain focused on scaling coffee and expanding our footprint by exploring new markets and verticals where we believe our proprietary resin can deliver sustainable solutions. The momentum from our partnerships, coupled with our ongoing R&D advancements, positions us to unlock additional revenue opportunities and drive long-term growth.”
While the company expects its quarterly results to fluctuate from quarter to quarter, it anticipates full year 2025 revenues to be higher than 2024 as it onboards new customers and expands its offerings to existing clients.
