Karbon‑X (OTCQB:KARX) Reports Record Fiscal 2026 Revenue of $55.9 Million as Company Scales Global Carbon Market Operations
Gross profit reached $0.86 million versus $0.80 million as revenue mix shifted toward high-volume, lower-margin trading.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Karbon-X (OTCQB:KARX) reported fiscal 2026 revenue of $55.9 million following its first full year of large-scale carbon credit trading.
Revenue rose approximately 1,670% from $3.16 million for the year ended May 31, 2026. Gross profit reached $0.86 million versus $0.80 million, while the revenue mix shifted toward lower-margin trading. Total assets rose 42% to $9.6 million. Holders converted $7.0 million of notes and accrued interest into 10.6 million common shares. After year-end, through August 31, 2026, approximately $0.79 million of principal, interest and related fees converted to equity.
Operations expanded across Europe, Latin America and North America. An Allcot AG asset acquisition added carbon projects and related rights. For fiscal 2027, Karbon-X expects to advance projects through measurement, reporting and verification toward future credit issuances and higher-margin opportunities, and intends to grow consumer subscriptions.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point$7.0 million of convertible notes and accrued interest converted to equity during fiscal 2026, reducing debt obligations. 49% of market cap
- Moderate pointFiscal 2026 revenue rose approximately 1,670% year over year to $55.9 million from $3.16 million.
- Moderate pointTotal assets increased 42% to $9.6 million at May 31, 2026, from $6.8 million a year earlier.
- Moderate pointApproximately $0.79 million of principal, accrued interest and related fees converted after year-end through August 31, 2026. 5.6% of market cap
- Minor pointFiscal 2026 gross profit increased to $0.86 million from $0.80 million in fiscal 2025.
4 minor points
- Minor pointAllcot AG asset acquisition completed June 27, 2025, adding carbon projects, intellectual property, databases and contractual rights.
- Minor pointTrading and project development operations established across Europe, Latin America and North America.
- Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 project plans target measurement, reporting and verification, expected to support future credits and higher-margin opportunities.
- Minor point. Forward-looking: it has not happened yet and may not happen.Consumer subscriptions are planned to grow in fiscal 2027 as part of developing recurring revenue.
Negative
- Major point10.6 million common shares issued through fiscal 2026 debt conversions diluted existing holders.
- Moderate pointPost-year-end equity conversion of approximately $0.79 million of obligations added dilution through August 31, 2026. 5.6% of market cap
- Moderate pointFiscal 2026 revenue mix shifted toward high-volume, lower-margin carbon credit trading.
Details
News Market Reaction – KARX
On Oct 1, the day this news came out, KARX closed 30.00% above the previous close.
Data tracked by StockTitan Argus for the Oct 1 session.
AI-generated analysis. How Rhea-AI works. Not financial advice.
CALGARY, AB / ACCESS Newswire / October 1, 2026 / Karbon‑X Corp. (OTCQB:KARX) ("Karbon‑X" or the "Company"), a vertically integrated climate solutions company operating across global carbon markets, today reported financial and operational results for the fiscal year ended May 31, 2026, reflecting a significant increase in operating scale across its carbon credit trading and project development activities.
Karbon‑X generated record fiscal 2026 revenue of
Gross profit was
"Fiscal 2026 moved Karbon-X into a new stage of commercial growth," said Chad Clovis, Chief Executive Officer of Karbon-X. "Revenue reached nearly eighteen times the prior-year level as we scaled our trading activity, expanded our project development presence across three continents and built a broader operating platform. As key projects advance beyond their initial investment and development phases and toward measurement, reporting and verification activities, we see an opportunity to build higher-margin revenue streams through future credit issuances. This foundation positions us for the next phase of growth, with a focus on improving our revenue mix, strengthening margins and translating our global capabilities into long-term shareholder value."
Watch: CEO Update: Fiscal 2026 in Review
Fiscal 2026 Financial Highlights
- Record revenue of
$55.9 million , compared with$3.16 million in fiscal 2025, representing approximately 1,670% year-over-year growth - Gross profit of
$0.86 million , compared with$0.80 million in fiscal 2025 - Total assets increased
42% to$9.6 million at May 31, 2026, compared with$6.8 million at May 31, 2025 - Converted
$7.0 million of convertible notes and accrued interest into 10.6 million shares of common stock, including a$3.5 million note issued to Hedera Foundation SEZC and approximately$1.1 million of accrued interest
Fiscal 2026 Business Highlights
1. Scaled Carbon Credit Trading
Karbon‑X completed its first full year of large-scale carbon credit trading, driving a significant increase in revenue and commercial activity.
2. Expanded Across Three Continents
The Company established trading and project development operations across Europe, Latin America and North America, significantly expanding its international reach and participation in global carbon markets.
3. Strengthened Project Development Capabilities
On June 27, 2025, Karbon‑X completed an asset acquisition from Allcot AG, adding a diversified portfolio of carbon projects, intellectual property, databases and contractual rights. The acquisition expanded the Company's project development capabilities and international presence across key carbon markets.
4. Broadened Industrial Market Participation
Karbon‑X continued to serve customers across mining, forestry, transportation, civil earthworks, and oil and gas services as it expanded its commercial carbon market activities.
5. Expanded Consumer Access
Alongside its business-to-business operations, Karbon-X continued to operate its globally available mobile application, providing individuals with subscription-based access to verified climate projects.
Depending on the subscription selected, users are allocated verified carbon credits corresponding to approximately 200 to 400 kilograms of CO₂ per month. These allocations are traceable to the underlying projects, with the associated credits retired in aggregated batches in accordance with the Company's retirement process.
In fiscal 2027, Karbon-X intends to continue growing its consumer subscription offering as part of its broader strategy to develop recurring, customer-facing revenue alongside its institutional and carbon market operations.
6. Balance Sheet and Debt Conversion
Karbon‑X ended fiscal 2026 with total assets of
During fiscal 2026, holders converted
Subsequent to fiscal year end and through August 31, 2026, an additional approximately
Karbon‑X had 94,885,028 common shares outstanding as of May 31, 2026.
Building on Scale in Fiscal 2027
Following a year of significant revenue growth and international expansion, Karbon-X enters fiscal 2027 with a substantially larger operating platform spanning carbon credit trading, project development and customer-facing climate solutions.
Across key project developments, the Company expects to advance projects through measurement, reporting and verification activities during fiscal 2027. Progress through these stages is expected to support future credit issuances and the development of higher-margin revenue opportunities as the project portfolio matures.
Management's focus for fiscal 2027 is on improving the economics of the Company's revenue mix, strengthening margins and operating efficiency, advancing its project portfolio and continuing to execute across its global carbon market operations.
About Karbon-X
Karbon-X Corp. (OTCQB: KARX) is a global carbon and environmental markets company that bridges the gap between climate solutions and commercial scale. Karbon-X develops, markets and commercializes environmental commodities and attributes across multiple project types, industries and geographies, connecting promising technologies, projects and companies with the markets, buyers and commercial structures needed to grow and scale. By helping more solutions reach the market and scale together, Karbon-X enables climate impact no single solution could achieve alone.
For more information visit www.karbon-x.com
Investor and Media Contacts
Investor Relations
Karbon-X
investors@karbon-x.com
Media Contact
Emma Caputo
VP of Marketing
Karbon-X
ec@karbon-x.com
Financial Information
The financial results contained in this release are derived from the Company's audited consolidated financial statements included in its Annual Report on Form 10‑K for the fiscal year ended May 31, 2026, filed with the U.S. Securities and Exchange Commission.
This release contains no non-GAAP financial measures. Investors should review the Form 10‑K for the Company's complete consolidated financial statements and accompanying notes, including disclosures concerning the Company's liquidity, capital requirements and ability to continue as a going concern.
Forward-Looking Statements
This news release contains forward-looking statements, including but not limited to statements regarding Karbon‑X Corp.'s plans and priorities for fiscal 2027, financial performance, business strategy, growth plans, ability to improve margins and operating efficiency, advancement of its project portfolio through measurement, reporting and verification activities, potential future credit issuances, and development of additional commercial opportunities.
Forward-looking statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Investors should review the risks and uncertainties described in the Company's Annual Report on Form 10‑K for the fiscal year ended May 31, 2026, and other filings with the U.S. Securities and Exchange Commission.
Karbon‑X undertakes no obligation to update any forward-looking statements except as required by law.
SOURCE: Karbon-X Project Inc.
View the original press release on ACCESS Newswire
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did Karbon-X revenue and gross profit grow in fiscal 2026?
Karbon-X reported $55.9 million in revenue, up approximately 1,670% from $3.16 million in fiscal 2025. Gross profit was $0.86 million compared with $0.80 million in the prior year. Fiscal 2026 ended May 31, 2026.
What was included in Karbon-X's Hedera Foundation debt conversion?
A $3.5 million convertible note issued to Hedera Foundation SEZC, together with approximately $1.1 million of accrued interest, converted in May 2026. This conversion was included in the fiscal 2026 total.