Nocopi Technologies Reports Third Quarter Results
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
Nocopi Technologies (NNUP) reported third-quarter revenue of $3.329 million, driven by an early license renewal and contributions from Polymeric. Revenue rose 763% year over year. Net income reached $1,397,029, or $0.12 per share, versus a $26,800 loss. Gross margin increased to 66% from 46%, reflecting a greater contribution from license revenue.
The renewed license extends through June 2030, adds a royalty-bearing product line and increases guaranteed minimum royalties. Operating expenses rose to $981,558 from $320,200, primarily reflecting Polymeric, with acquisition and integration fees also contributing. Nine-month revenue reached $4,679,527 and net income was $862,802. Operating cash use was $0.366 million, versus $0.658 million generated a year earlier. Cash and investments totaled $10.278 million at September 30, 2026, with no debt outstanding.
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 pointThird-quarter revenue increased 763% year over year to $3.329 million.
- Major pointThird-quarter net income reached $1,397,029, versus a $26,800 loss; earnings per share were $0.12.
- Moderate pointThird-quarter gross profit rose to $2,202,601 from $177,500; gross margin increased to 66% from 46%.
- Moderate pointLicense renewal extends through June 2030, adds a royalty-bearing product line and increases guaranteed minimum royalties.
- Minor pointLicense, royalty and fee revenue reached $1,730,587 in the third quarter, versus $110,200 a year earlier.
10 minor points
- Minor pointProduct and other sales rose to $1,598,228 in the third quarter from $275,600.
- Minor pointThird-quarter operating income reached $1,221,043, versus a $142,700 operating loss a year earlier.
- Minor pointNine-month revenue increased 282% year over year to approximately $4,680,000.
- Minor pointNine-month net income reached $862,802, versus a $59,900 loss; earnings per share improved to $0.07 from $(0.01).
- Minor pointNine-month gross profit increased to $2,750,582 from $642,700.
- Minor pointNine-month operating income reached $491,811, versus a $401,000 operating loss a year earlier.
- Minor pointCash and investments totaled $10.278 million at September 30, 2026, with no debt outstanding.
- Minor pointStockholders’ equity increased to $16,149,335 at September 30, 2026, from $13,603,800 at December 31, 2025.
- Minor pointPolymeric integration is progressing according to plan, management said, with customers retained through the transition.
- Minor point. Forward-looking: it has not happened yet and may not happen.Growth plans include expanding existing operations and evaluating acquisitions in core and adjacent segments.
Negative
- Moderate pointNine-month operating cash use was $0.366 million, versus $0.658 million generated in the prior-year period.
- Moderate pointThird-quarter operating expenses increased to $981,558 from $320,200, primarily reflecting Polymeric operations.
- Moderate pointCommon shares outstanding increased to 11,906,664 at September 30, 2026, from 10,835,123 at December 31, 2025.
- Minor pointNine-month operating expenses rose to $2,258,771 from $1,043,700.
- Minor pointLong-term receivables increased to $1,787,947 at September 30, 2026, from $775,000 at December 31, 2025.
- Minor pointInterest income declined to $97,509 for the quarter and $304,714 year to date, from $122,000 and $359,200.
AI-generated analysis. How Rhea-AI works. Not financial advice.
KING OF PRUSSIA, Pa., Nov. 12, 2026 (GLOBE NEWSWIRE) -- Nocopi Technologies, Inc. (“Nocopi Technologies” or the “Company”; OTCQB: NNUP) today reported financial results for the quarter ended September 30, 2026.
2026 Third Quarter Highlights
- Total revenues increased
763% to$3.329 million in the fiscal 2026 third quarter, as compared to$0.386 million in the fiscal 2025 third quarter. This was driven in part by an early license renewal that extended the term and added newly developed product technologies, as well as revenue from the previously announced Polymeric acquisition. - Gross profit increased to
$2.203 million in the fiscal 2026 third quarter, as compared to$0.178 million in the fiscal 2025 third quarter. - Net income was
$1.397 million , or$0.12 per share, in the fiscal 2026 third quarter, as compared to a net loss of$(0.027) million , or$(0.00) per share, in the fiscal 2025 third quarter. - Net cash used in operating activities for the nine months ended September 30, 2026 was
$(0.366) million , as compared to net cash provided by operating activities of$0.658 million for the nine months ended September 30, 2025. The change primarily reflects an increase in long-term receivables, largely related to guaranteed minimum royalties under the renewed license agreement that will be collected over the license term. - Cash and cash equivalents, marketable securities, and held-to-maturity investments totaled
$10.278 million at the end of the 2026 third quarter, with no debt outstanding.
Revenue and Gross Profit
For the three months ended September 30, 2026, total revenues were
Total revenues for the nine months ended September 30, 2026 were approximately
The Company’s gross profit increased to
Total Operating Expenses
Total operating expenses for the fiscal third quarter 2026 were
Net Income
The Company reported net income of
Management Commentary
The integration of Polymeric’s operations is progressing according to plan and is already contributing meaningfully to the Company’s consolidated performance. Since the acquisition in May, the Company has focused on aligning operations, retaining the customer base and establishing common processes across both facilities. Polymeric is tracking to management’s expectations, and management’s conviction in its long-term value potential continues to grow. The expanded team has settled in well and customers have remained with the Company through the transition.
“The acquisition marks a milestone in Nocopi’s longer-term expansion plans. It adds in-house screen and digital ink manufacturing, a broader commercial footprint and an established customer base in markets not previously served. Together, these give us a more diversified revenue base that complements our royalty and license revenue,” said Gregory S. Babe, Executive Director of Operations.
Nocopi’s core relationships in the entertainment and educational toy markets remain a top priority, and several of these partnerships go back more than a decade. During the quarter, the Company executed an early renewal and multi-year extension of an existing license agreement. The renewal extends the term to June 2030, adds an additional product line subject to royalty payments, and increases the guaranteed minimum royalty payable to the Company. Management believes this early renewal reflects the licensee’s continued confidence in Nocopi Technologies and its ability to innovate new products. The Company continues to work closely with these partners on new applications while pursuing additional licensees in the sector.
Strong Balance Sheet Provides Execution Flexibility
As of September 30, 2026, the Company had
“Currently, we are heavily focused on positioning Nocopi, inclusive of Polymeric, for long-term growth by strengthening customer relationships, attracting new customers, and expanding applications for existing products, while at the same time continuing to search for accretive acquisition opportunities where we believe we have a competitive advantage in growing the business through existing relationships or our in-house knowledge base,” said Kevin C. Westenburg, President. “That means running these operations with discipline and growing free cash flow to compound value for shareholders.”
Strategic M&A Approach
Nocopi’s growth strategy rests on two priorities: expanding the existing business and pursuing acquisitions that add value. On the organic side, the Company is deepening relationships with established licensees and broadening the reach of its reactive ink technologies. It is also using the manufacturing and commercial capabilities gained through Polymeric to serve a wider customer base.
The Company also continues to evaluate value-accretive acquisition opportunities in both its core and adjacent segments. It is focused on well-established businesses with defensible market positions, long-standing customer relationships and experienced teams. Each opportunity is assessed for strategic fit and for its potential to enhance margins, cash flow and long-term shareholder value.
“Our approach to growth is balanced and disciplined,” said Matthew C. Winger, Chairman and Chief Executive Officer. “We see real opportunity to grow the business we have, and that remains our first priority. At the same time, Polymeric showed the value a well-chosen acquisition can bring, expanding our capabilities and footprint in ways that really complement our core operations. We continue to seek acquisitions that have the potential to strengthen our platform, improve our cash flow profile and have long-term growth potential. We will only proceed where we are confident the transaction creates meaningful value for our shareholders.”
About Nocopi Technologies (www.nocopi.com)
Nocopi Technologies, headquartered in King of Prussia, PA, develops and markets specialty inks and licenses these technologies. Nocopi Technologies’ ink technologies are backed by proprietary and patented technology and are marketed for use across a variety of end markets.
Safe Harbor for Forward-Looking Statements
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, the Company’s prospects, plans, business strategy and expected financial and operational results, including with respect to the preliminary financial information and the acquisition described above. In some cases, you can identify these statements by forward-looking words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “might,” “should,” “will,” “could,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. These statements are based on certain assumptions that the Company has made in light of its experience in its industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors that the Company believes are appropriate in these circumstances. These forward-looking statements reflect the Company’s current expectations and beliefs regarding future developments and their potential effect on the Company.
You should not rely on forward-looking statements because the Company’s actual results may differ materially from those indicated by forward-looking statements as a result of a number of important factors. These factors include, but are not limited to: the Company’s ability to successfully integrate the acquisition and to achieve the benefits it expects to realize as a result of the acquisition; the potential adverse impact on the Company’s financial condition and results of operations if it does not realize those expected benefits; liabilities of the acquisition that are not known to the Company; the extent to which the Company is successful in gaining new long-term relationships with customers or retaining significant existing customers and the level of service failures that could lead customers to use competitors’ services; the Company’s ability to improve its current credit rating with its vendors and the impact on its raw materials and other costs and competitive position of doing so; the impact of losing the Company’s intellectual property protections or the loss in value of its intellectual property; changes in customer demand; the occurrence of hostilities, political instability or catastrophic events; developments and changes in laws and regulations, including increased regulation of the Company’s industry through legislative action and revised rules and standards; security breaches, cybersecurity attacks and other significant disruptions in the Company’s information technology systems; general economic and business conditions; the impact of competition and technological change; the Company’s ability to comply with the rules and regulations of the Securities and Exchange Commission (the “SEC”); and those other risks and uncertainties discussed in the reports the Company has filed with the SEC, including the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements speak only as of the date they are made.
Although the Company believes the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. The Company undertakes no obligation to update any of these forward-looking statements after the date of this report to conform them to actual results or revised expectations, except as required by law.
Investor & Media Contact
610-834-9600
ir@nocopi.com
| NOCOPI TECHNOLOGIES, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) | ||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues | ||||||||||||||||
| Licenses, royalties and fees | $ | 1,730,587 | $ | 110,200 | $ | 1,897,287 | $ | 440,600 | ||||||||
| Product and other sales | 1,598,228 | 275,600 | 2,782,240 | 784,200 | ||||||||||||
| Total revenues | 3,328,815 | 385,800 | 4,679,527 | 1,224,800 | ||||||||||||
| Cost of revenues | ||||||||||||||||
| Licenses, royalties and fees | 55,608 | 43,800 | 149,008 | 126,400 | ||||||||||||
| Product and other sales | 1,070,606 | 164,500 | 1,779,937 | 455,700 | ||||||||||||
| Total cost of revenues | 1,126,214 | 208,300 | 1,928,945 | 582,100 | ||||||||||||
| Gross profit | 2,202,601 | 177,500 | 2,750,582 | 642,700 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Research and development | 57,622 | 43,600 | 161,722 | 131,800 | ||||||||||||
| Sales and marketing expenses | 202,644 | 71,300 | 366,236 | 219,600 | ||||||||||||
| Professional and consulting expenses | 190,325 | 86,800 | 675,625 | 309,400 | ||||||||||||
| Compensation and related taxes - general and administrative | 345,116 | 68,700 | 676,211 | 205,000 | ||||||||||||
| Other general and administrative expenses | 185,851 | 49,800 | 378,977 | 177,900 | ||||||||||||
| Total Operating Expenses | 981,558 | 320,200 | 2,258,771 | 1,043,700 | ||||||||||||
| Net Income (Loss) from Operations | 1,221,043 | (142,700 | ) | 491,811 | (401,000 | ) | ||||||||||
| Other Income (Expense): | ||||||||||||||||
| Interest income | 97,509 | 122,000 | 304,714 | 359,200 | ||||||||||||
| Unrealized gain on marketable securities | 109,261 | — | 109,261 | — | ||||||||||||
| Interest expense and bank charges | (5,796 | ) | (6,100 | ) | (17,996 | ) | (18,100 | ) | ||||||||
| Total Other Income, net | 200,974 | 115,900 | 395,979 | 341,100 | ||||||||||||
| Income (Loss) before provision for income taxes | 1,422,017 | (26,800 | ) | 887,790 | (59,900 | ) | ||||||||||
| Provision for income taxes | (24,988 | ) | — | (24,988 | ) | — | ||||||||||
| Net Income (Loss) | $ | 1,397,029 | $ | (26,800 | ) | $ | 862,802 | $ | (59,900 | ) | ||||||
| Net income (loss) per common share, basic and diluted | $ | 0.12 | $ | (0.00 | ) | $ | 0.07 | $ | (0.01 | ) | ||||||
| Weighted average common shares outstanding - basic and diluted | 11,519,476 | 10,800,223 | 11,424,847 | 10,795,350 | ||||||||||||
| NOCOPI TECHNOLOGIES, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| September 30, 2026 | December 31, 2025 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 7,292,314 | $ | 11,553,600 | ||||
| Marketable securities - equity securities | 385,237 | — | ||||||
| Held-to-maturity investments - short term, amortized cost | 654,925 | — | ||||||
| Accounts receivable less | 1,807,018 | 936,700 | ||||||
| Inventory, net of allowance | 1,871,547 | 456,900 | ||||||
| Interest receivable | 31,060 | — | ||||||
| Prepaid expenses and other current assets | 204,378 | 144,100 | ||||||
| Total Current Assets | 12,246,479 | 13,091,300 | ||||||
| OTHER ASSETS: | ||||||||
| Held-to-maturity investments - long-term, amortized cost | 1,946,001 | — | ||||||
| Property and equipment, net | 303,904 | 10,000 | ||||||
| Goodwill | 490,003 | — | ||||||
| Intangible assets, net | 283,135 | — | ||||||
| Long-term receivables | 1,787,947 | 775,000 | ||||||
| Operating lease right of use assets | 507,804 | 161,300 | ||||||
| Total Assets | $ | 17,565,273 | $ | 14,037,600 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 460,429 | $ | 30,600 | ||||
| Accrued expenses and other liabilities | 210,999 | 153,300 | ||||||
| Stock compensation payable | — | 26,700 | ||||||
| Purchase consideration payable – holdback, current | 50,000 | — | ||||||
| Operating lease liability – current | 258,872 | 80,200 | ||||||
| Total Current Liabilities | 980,300 | 290,800 | ||||||
| NON-CURRENT LIABILITIES: | ||||||||
| Accrued expenses, non-current | 125,156 | 54,300 | ||||||
| Purchase consideration payable – holdback, long-term | 50,000 | — | ||||||
| Operating lease liability – non-current | 260,482 | 88,700 | ||||||
| TOTAL NON-CURRENT LIABILITIES | 435,638 | 143,000 | ||||||
| Total Liabilities | 1,415,938 | 433,800 | ||||||
| Commitments and Contingencies (Note 13) | ||||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Preferred stock, outstanding | — | — | ||||||
| Common stock, 10,835,123 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively | 119,067 | 108,300 | ||||||
| Additional paid-in capital | 27,370,866 | 25,698,900 | ||||||
| Accumulated deficit | (11,340,598 | ) | (12,203,400 | ) | ||||
| Total stockholders' equity | 16,149,335 | 13,603,800 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 17,565,273 | $ | 14,037,600 | ||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Nocopi Technologies’ third-quarter 2026 earnings and revenue?
Nocopi reported $3.329 million in revenue and $1,397,029 in net income, or $0.12 per share, for the quarter ended September 30, 2026. Revenue increased 763% year over year, while the comparable quarter had a net loss of $26,800.
What changed in Nocopi Technologies’ renewed license agreement?
The early renewal extends the agreement through June 2030, adds an additional product line subject to royalty payments and increases the guaranteed minimum royalty payable to Nocopi. The renewal contributed to third-quarter license revenue.
Why did Nocopi Technologies use operating cash despite reporting a nine-month profit?
The company attributed the change in operating cash flow primarily to increased long-term receivables, largely representing guaranteed minimum royalties under the renewed license agreement. Those royalties will be collected over the license term. Nine-month operating cash use was $0.366 million, compared with $0.658 million generated a year earlier.