Karbon-X Corp. Posts $5.2M Q3 Loss as Revenue Growth Fails to Cover Costs

Karbon-X Corp., a Nevada-based company, reported a net loss of $5.2 million for the three months ended February 28, 2026, compared with a net loss of $1.2 million in the same quarter a year earlier. The loss deepened even as quarterly revenue jumped to $4.3 million from $238,528 in the prior-year period. Read more earnings reports.

The company's cost of revenue for the quarter totaled $5.8 million, exceeding the $4.3 million in sales and producing a negative gross margin of $1.5 million. In the year-ago quarter, gross profit was $140,676 on $238,528 in revenue.

Operating expenses climbed to $2.8 million from $1.8 million a year earlier, contributing to an operating loss of $4.4 million versus an operating loss of $1.7 million in the prior-year quarter.

For the nine months ended February 28, 2026, Karbon-X posted a net loss of $9.2 million compared with a $3.7 million loss in the first nine months of fiscal 2025. Nine-month revenue reached $60.8 million, up from $1.5 million in the year-earlier period, but cost of revenue totaled $60.0 million, leaving gross profit at $774,589.

Balance Sheet and Cash Position

Total assets stood at $20.4 million as of February 28, 2026, up from $6.8 million at the end of fiscal 2025 on May 31, 2025. Current assets rose to $17.9 million from $5.8 million, driven by increases in cash, accounts receivable, and inventory.

Cash and restricted cash climbed to $4.1 million from $704,346 at fiscal year-end. Accounts receivable jumped to $4.8 million from $1,782, and inventory expanded to $1.6 million from $99,644.

Total liabilities surged to $27.3 million from $8.1 million at fiscal year-end. Current liabilities increased to $21.8 million from $7.4 million, with accounts payable rising to $10.9 million from $1.1 million. The company also reported $4.9 million in long-term debt at quarter-end, compared with none at the end of fiscal 2025.

Stockholders' deficit widened to $6.9 million from $1.4 million at fiscal year-end, reflecting the accumulated losses. The company had 88.4 million common shares outstanding as of February 28, 2026, up from 82.0 million shares at the end of fiscal 2025.

Cash Flow

Cash used in operations for the nine months totaled $4.7 million, compared with $4.5 million in the prior-year period. The company used $2.3 million in investing activities during the nine months, primarily for the acquisition of assets. Cash from financing activities provided $10.3 million, compared with $2.9 million in the year-earlier period.

Key Financials