CORRECTION FROM SOURCE: Enablence Technologies Announces First Quarter 2026 Financial Results

Rhea-AI Summary

Enablence Technologies (ENAFF) filed corrected audited first-quarter fiscal 2026 financial statements on December 2, 2025, revising a prior error in net loss reporting.

Key reported figures for quarter ended September 30, 2025 (USD thousands): revenue $836 (down 31% YoY), gross margin $(1,653), net loss $6,350 (up 62% YoY), comprehensive loss $5,334, and cash $2,757. Management reaffirmed fiscal 2026 revenue guidance of $12.0M ± $0.5M and said planned manufacturing investments aim to raise wafer starts from 1,500 to 3,000 wafers/month by year-end. Company cites stronger order book, >12% non-communications revenue, North American module demand, and accordion funding during the quarter.

Positive

• Fiscal 2026 revenue guidance reaffirmed at $12.0M ± $0.5M
• Planned wafer capacity to increase from 1,500 to 3,000 wafers/month by fiscal year-end
• Non-communications revenue now exceeds 12% of sales
• Reported a strong order book and accordion funding during the quarter

Negative

• Revenue declined 31% year-over-year to $836
• Gross margin worsened to $(1,653), a decline of $1,096
• Net loss increased 62% year-over-year to $6,350
• Cash and cash equivalents fell from $5,004 to $2,757

THIS PRESS RELEASE CORRECTS THE PREVIOUS PRESS RELEASE SENT ON DECEMBER 1, 2025 AT 11:30 PM EST. THE TITLE OF RELEASE WAS LABELED "ENABLENCE ANNOUNCES FIRST QUARTER FINANCIAL RESULTS." THE THIRD BULLET IN THE FINANCIAL HIGHLIGHTS SECTION ENTITLED "NET LOSS INCREASE" CONTAINED AN ERROR, INCORRECTLY STATING ($13,914) NET LOSS. THE CORRECTION NOW STATES ($3,914) NET LOSS.

Ottawa, Ontario--(Newsfile Corp. - December 2, 2025) - Enablence Technologies Inc. (TSXV: ENA) ("Enablence" or the "Company"), a leading provider of optical chips and sub systems that perform communications, sensing and computing for datacom, telecom, automotive and artificial intelligence (AI) applications has filed its audited financial statements for the first quarter 2026 and related management's discussion and analysis and certifications (collectively, the "Financial Statements"). Electronic copies of the Financial Statements are available (www.sedarplus.ca) under Enablence's issuer profile.

Commenting on the Company's Fiscal Year 2025 financial results, Enablence CEO, Todd Haugen, said, "As anticipated, first-quarter revenue was down, reflecting a one-time correction which takes account of the impact of our planned manufacturing expansion, including the addition of new tool sets and materials expenses during the quarter. These strategic investments will significantly increase our wafer capacity, positioning Enablence to meet robust demand for both our legacy datacom products and our rapidly growing AI and advanced vision products. Looking forward, we expect monthly wafer starts to grow from 1,500 wafers per month to 3,000 wafers per month by the end of the fiscal year. With this added capacity now in place, we expect momentum to continue to build across all three businesses - communications, sensing, and compute. Therefore, we remain committed to our fiscal 2026 revenue guidance of $12 million ± $0.5 million and remain highly confident in the long-range strategic growth plan."

"Our business remains strong, as evidenced by a strong order book for communications, sensing and compute products. While communications continue to represent the main portion of our business, we are also beginning to see traction in sensing and AI business with non-communications revenue now exceeding 12 percent of the business and growing especially in the areas of AI and LiDAR applications, which continues to gain strong interest from customers. Of significance, we also continue to see a substantial uptick in our North American module business, which is benefiting significantly from increasing re-shoring initiatives as U.S. customers prioritize supply-chain certainty. These dynamics reinforce our confidence in our long-term growth strategy."

Financial Highlights

Enablence is pleased to provide the following highlights for the first quarter of Fiscal Year 2026 (all dollar figures are expressed in thousands of United States dollars):

• Revenue Growth: Revenue for the quarter ended September 30, 2025, was $836 as compared to $1,218 for the same period in the prior year, a decrease of $382 or 31%.

• Gross Margin Improvement: The company's gross margin declined by $1,096, with a reported gross margin of $(1,653) for the quarter, compared to $(557) in the previous year. While there was a significant decline, the impact on gross margin for this quarter was impacted by revenue timing and a ramp up on raw materials for at-capacity production.

• Net Loss Increase: Enablence reported a net loss of $6,350, compared to a $3,914 net loss in for same period last year, an increase of 62%. The higher loss was driven by investments in R&D and manufacturing capacity as demand for the product increases markedly.

• Comprehensive Loss Position: The company's comprehensive loss increased to $5,334 for the quarter, compared to $4,380 in the same period last year. The impact of the USD strengthened the comprehensive loss position.

• Stronger Cash Position: Enablence ended the quarter with $2,757 in cash and cash equivalents, a drop from $5,004 as of June 30, 2025.

• Continuing Investment: Investors continue to see evidence of gross margin and profit turnaround as evidenced by the accordion funding provided during the quarter.

The "Financial Highlights" above are qualified in their entirety by the Financial Statements, which are available on SEDAR+ (www.sedarplus.ca) under Enablence's issuer profile. For additional information on the Company, please refer to the investor presentation of the Company, which is available on Enablence's website (www.enablence.com/investors) in the "Corporate - Investors" tab.

About Enablence Technologies Inc.

Enablence is a publicly traded company listed on the TSX Venture Exchange (TSXV: ENA) that designs, markets and sells optical chips and sub systems, primarily in the form of planar lightwave circuits (PLC), on silicon-based chips for datacom, telecom, automotive and artificial intelligence (AI) applications. Enablence products serve a global customer base, primarily focused today on data center and other rapidly growing end markets. Enablence also works with customers that have emerging market uses for its technology, including medical devices, automotive LiDAR, and virtual and augmented reality headsets. In select strategic circumstances, the Company also uses its proprietary, non-captive fabrication plant in Fremont, California to manufacture chips designed by third party customers. For more information, visit: www.enablence.com.

For more information, contact:

Stan Besko, MBA, CFO Enablence Technologies Inc.
stan.besko@enablence.com

Todd Haugen, CEO Enablence Technologies Inc.
todd.haugen@enablence.com

Ali Mahdavi
Capital Markets & Investor Relations
am@spinnakercmi.com

Media and Analysts Alison Parnell
Hill and Kincaid Marketing & PR
press@hillandkincaid.com

Cautionary Note Regarding Forward-Looking Information

This news release contains forward-looking statements regarding the Company based on current expectations and assumptions of management, which involve known and unknown risks and uncertainties associated with our business and the economic environment in which the business operates. All such statements are forward-looking statements under applicable Canadian securities legislation. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. These statements are based on current expectations that involve several risks and uncertainties which could cause actual results to differ from those anticipated. Although the Company believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. We caution our readers of this news release not to place undue reliance on our forward-looking statements as a few factors could cause actual results or conditions to differ materially from current expectations.

Additional information on these and other factors that could affect the Company's operations are set forth in the Company's continuous disclosure documents that can be found on SEDAR+ (www.sedarplus.ca) under Enablence's issuer profile.

Enablence does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether because of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276700

FAQ

What corrected figure did Enablence (ENAFF) file on December 2, 2025 for Q1 2026 net loss?

The company corrected the prior release and reported a net loss of $6,350 for the quarter, clarifying an earlier numeric error.

How much did Enablence (ENAFF) revenue change in Q1 fiscal 2026 versus prior year?

Revenue fell to $836, a 31% decrease compared with the same quarter last year.

What fiscal 2026 revenue guidance did Enablence (ENAFF) reaffirm?

Management reaffirmed revenue guidance of $12.0 million ± $0.5 million for fiscal 2026.

How will Enablence (ENAFF) change manufacturing capacity during fiscal 2026?

The company expects monthly wafer starts to grow from 1,500 to 3,000 wafers/month by the end of the fiscal year.

What happened to Enablence's (ENAFF) cash balance in Q1 2026?

Cash and cash equivalents decreased to $2,757 from $5,004 at the prior quarter end.

Is Enablence (ENAFF) seeing growth outside communications products?

Yes; management reports non-communications revenue now exceeds 12% and cites traction in AI and LiDAR applications.