CEA Industries Swings to $106.6M Net Loss in Q3 FY2026 Amid $164.3M Operating Loss

CEA Industries Inc. reported a net loss of $106.6 million for the three months ending January 31, 2026, compared to net income of $773,317 in the same quarter a year earlier. The company posted an operating loss of $164.3 million for the quarter, a reversal from operating income of $957,654 in Q3 FY2025. Read more earnings reports.

Revenue for the quarter reached $7.3 million, up 6.2% from $6.9 million in the prior-year period. Cost of revenue rose to $5.6 million from $5.1 million, while gross profit held nearly flat at $1.8 million versus $1.8 million a year ago.

Operating expenses exploded to $166.1 million in Q3 FY2026 from just $804,262 in the year-ago quarter. Selling, general and administrative expenses climbed to $6.0 million from $612,731 a year earlier.

For the nine-month period from June 7, 2025 through January 31, 2026, the company reported revenue of $19.1 million and a net income of $171.2 million. The company recorded a tax benefit of $18.4 million in the quarter ending January 31, 2026, compared to a tax expense of $184,337 in the prior-year quarter.

Cash and cash equivalents stood at $11.3 million as of January 31, 2026, down from $208.3 million on August 5, 2025, but up from $2.1 million as of April 30, 2025. Total assets reached $436.8 million as of January 31, 2026, up from $9.0 million at the end of fiscal 2025.

Cash used in operations totaled $32.1 million for the nine months ending January 31, 2026. Cash from financing activities brought in $217.6 million, while investing activities consumed $185.7 million during the same period.

Total liabilities increased to $71.9 million as of January 31, 2026, from $4.3 million at the end of the prior fiscal year. Stockholders' equity rose to $364.9 million from $4.8 million over the same period.

Basic and diluted loss per share for the quarter were both $2.00, based on 53.2 million weighted average shares outstanding, compared to earnings per share of $548.45 in the prior-year quarter when the company had just 1,410 weighted average shares outstanding. The company had 43.7 million common shares outstanding as of January 31, 2026.