# NEXE Revenue Rises as Coffee-Pod Expansion Brings Higher Costs

The compostable-packaging company reported 10.5% sales growth, a narrower net loss and a gross loss as it brought new customers into production.

By Will Langan | 24X7 News
Published: 2026-10-31T01:01:23.772Z
Updated: 2026-10-31T01:01:23.772Z
Section: Business
Format: News
Canonical: https://24x7news.us/articles/nexe-first-quarter-fiscal-2027-results-october-30-2026

NEXE Innovations reported October 30 that first-quarter fiscal 2027 revenue increased 10.5%, while its net loss narrowed 33.7%.

The Canadian compostable-materials company said the quarter, which ended August 31, included initial deliveries to Just Us! Coffee Roasters and the onboarding of a U.S. coffee chain with locations in New York City and Boston.

Sales growth did not translate into a positive gross margin. NEXE reported a gross loss for the quarter, compared with gross income a year earlier, as its cost of goods sold increased 73.7%.

Management attributed the higher costs to customer onboarding, packaging, a different product mix, depreciation classification and inventory write-downs. It said the improvement in net loss primarily reflected lower depreciation, including a change in depreciation estimates.

NEXE said it expects annual compostable-pod volumes to exceed the upper end of its previously announced range of 10 million to 15 million. That remains a management forecast based on current customer interest and opportunities in progress.

The company also disclosed talks concerning potential distribution to a national hotel chain. Discussions are not confirmed orders or completed distribution arrangements.

Sources
NEXE Innovations — October 30 quarterly results and business update: https://www.globenewswire.com/news-release/2026/10/31/3392696/0/en/nexe-innovations-reports-q1-fiscal-2027-results-and-business-update.html

## Sources
- NEXE Innovations — October 30 quarterly results and business update: https://www.globenewswire.com/news-release/2026/10/31/3392696/0/en/nexe-innovations-reports-q1-fiscal-2027-results-and-business-update.html