Alchemy Labs Inc. (TSXV: ALCH) reported higher revenue and a substantial gross-margin improvement in its second quarter, although increased operating expenses contributed to a wider loss.
Revenue for the three months ended June 30, 2026, reached C$581,027, up 16.9% from C$496,871 in the comparable 2025 period, according to the company’s unaudited second-quarter results.
ExoShield, Alchemy’s automotive protection platform, generated C$509,195 in revenue, representing an increase of 2.5%. The company also reported its first quarterly contribution from Crypsis, its thermal signature management technology for defence applications, with revenue of C$71,382.
Gross profit improved to C$224,803, producing a gross margin of 38.7%. In the prior-year quarter, Alchemy recorded a gross loss of C$1,177 and a negative margin of 0.2%. Management attributed the improvement partly to greater availability of automotive products and increased emphasis on its higher-margin GT3+ and ULTRA offerings.
However, Alchemy’s operating loss widened to C$1.19 million from C$761,845. The company cited increased spending on sales and marketing, engineering, business development and supporting infrastructure. Net loss rose to C$1.57 million, or C$0.06 per share, from C$1.15 million, or C$0.03 per share.
Alchemy held C$1.26 million in cash and cash equivalents at quarter-end. That figure does not include its initial public offering, completed on July 9, through which the company raised gross proceeds of approximately C$13.74 million.
“Crypsis began contributing revenue as we continued advancing the technology toward commercial integration with defence industry partners,” CEO Khanjan Desai said.
During the quarter, Alchemy launched its first six ExoShield ULTRA Pro aftermarket kit models, completed Phase One of the NATO DIANA Accelerator Programme and continued validating Crypsis with a U.S. defence garment supplier.
Upcoming Catalysts
Alchemy’s near-term developments include progress under its recently announced non-recurring engineering agreement with a Canadian defence textile supplier. The estimated C$250,000 program comprises three development phases, with advancement dependent on technical milestones and mutual approval.
Investors may also watch for additional Crypsis validation work, sales contributions from the expanded ExoShield portfolio and further disclosure about how the company deploys its IPO proceeds. Completion of the defence development program could lead to negotiations for a separate commercial agreement, but no such agreement is guaranteed.
Sources
- Alchemy Labs Q2 2026 financial results
- Crypsis defence textile NRE agreement
- Alchemy Labs corporate website
- SEDAR+ regulatory filings
Editorial Disclosure: This article is based on publicly available company announcements and regulatory disclosures. Next Gen Tech Stocks was not compensated by Alchemy Labs for this coverage, and the author holds no position in the company. Company-reported figures have not been independently verified. Alchemy remains an early-stage business with a limited revenue base, continuing losses and commercialization, financing and technical-execution risks. Information is current as of August 20, 2026, and is provided for informational purposes only. Read the full disclaimer.
