enCore Energy — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter revenue increased 88% year-over-year to $16.7 million, driven by 200,000 pounds of U₃O₈ deliveries (vs. 130,000 pounds in Q3 2025) and an average realized sales price of $83.46 per pound (vs. $68.28 per pound).
• Nine-month revenue rose to $50.7 million from $30.8 million in the prior-year period, with uranium deliveries increasing to 685,000 pounds (vs. 480,000 pounds) and an average realized sales price of $74.00 per pound (vs. $64.13 per pound).
• Third quarter cost of sales was $17.4 million compared to $5.0 million in Q3 2025; weighted average cost of uranium sold was $87.22 per pound (vs. $38.35 per pound), primarily due to a higher proportion of purchased uranium.
• Nine-month cost of sales increased to $54.1 million from $25.8 million; weighted average cost per pound sold was $78.95 (vs. $53.71). Of the 685,000 pounds sold in the first nine months of 2026, 560,000 pounds were purchased uranium and 125,000 pounds were extracted uranium.
• Third quarter gross margin resulted in a loss of $0.8 million, compared to a gross profit of $3.9 million in Q3 2025.
• Nine-month operating cash flow saw net cash used in operating activities of $47.4 million, compared to $37.9 million in the prior-year period.
• Third quarter net loss attributable to enCore was $33.9 million ($0.17 per share), compared to $4.8 million ($0.03 per share) in Q3 2025; results included a $17.0 million realized loss and $5.7 million unrealized gain on marketable securities.
• Nine-month net loss attributable to enCore was $70.0 million ($0.36 per share), compared to $35.3 million ($0.19 per share) in the prior-year period.
• As of September 30, 2026, unrestricted cash and cash equivalents were $5.1 million, marketable securities were $33.6 million, inventory was $6.4 million, and working capital was $47.3 million.
• Inventory as of September 30, 2026, totaled 116,631 pounds with a cost of $6.4 million ($54.87 per pound), compared to 132,013 pounds with a cost of $5.3 million ($40.28 per pound) as of December 31, 2025.

Guidance and Future Outlook:

• enCore expects to begin extraction at the Alta Mesa wellfield 3 Extension before the end of 2026.
• Operations at the Upper Spring Creek satellite facility and wellfield are expected to commence before the end of 2026.
• The Company expects to begin extraction at Alta Mesa wellfield 8 in early 2027.
• Management indicated a focus on aligning spending with permitting timelines and reducing costs in response to permitting delays in South Texas.

Business Segments and Product Lines:

• Alta Mesa: Wellfield 3 Extension is complete and awaiting final regulatory approval; wellfield 8 development drilling is ongoing. Exploration drilling and permitting applications continue for the Alta Mesa East expansion.
• Upper Spring Creek: First phase of the satellite facility and wellfield development is complete and awaiting final TCEQ approvals.
• Dewey Burdock: Key federal approvals are in hand, including EPA Class III and V underground injection control permits (received October 2025) and BLM Plan of Operations approval (June 15, 2026). Preliminary engineering is ongoing for the plant site and evaporation ponds, with state permitting advancing.
• Cost Discipline: The Company executed a reduction in force in July 2026, reducing overall headcount by approximately 20%, and reduced rig activity to align with permitting timelines.

Market and Competitive Landscape:

• The Company operates in the uranium sector, utilizing In-Situ Recovery (ISR) technology, described as minimally invasive, eco-friendly, and economically competitive.
• The press release notes a challenging year for enCore in 2026, with permitting delays in South Texas reducing estimated 2026 extraction volumes.
• Future project pipeline includes the expansion of Alta Mesa, the Dewey Burdock project in South Dakota, and the Gas Hills project in Wyoming.

Risks and Challenges:

• Permitting delays in South Texas have impacted extraction volumes and required operational adjustments.
• The Company faces risks associated with regulatory approvals, including final TCEQ approvals for Alta Mesa and Upper Spring Creek, and state permitting for Dewey Burdock.
• Forward-looking statements highlight risks including changes in commodity prices, access to skilled personnel, regulatory risks, and the ability to implement business strategies.

Management Commentary and Tone:

• CEO Rich Little stated that 2026 has been a challenging year, but the Company has responded by reducing costs and focusing capital where it matters most.
• Management emphasized optimizing operations to align spending with permitting timelines while continuing to build wellfields and infrastructure for the next phase of extraction.
• The tone reflects a strategic pivot toward cost discipline and readiness for extraction once regulatory authorizations are received.

Other Key Points:

• During the third quarter, the Company distributed Verdera Energy Corp. shares to shareholders with a fair value of $8.4 million, recording a $17.2 million realized loss on the distribution.
• The distribution triggered an adjustment to the conversion rate on the Company's 5.50% convertible senior notes due 2030 and related capped-call strike and cap prices.
• The Company holds non-core assets and proprietary databases in addition to its core uranium projects.