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Nocopi Technologies — Third Quarter 2026 Earnings Summary

NNUP

  • Financial Performance:

    • Total revenues for the three months ended September 30, 2026, increased 763% year-over-year to $3.329 million from $0.386 million in the same period in 2025.
    • Total revenues for the nine months ended September 30, 2026, increased 282% year-over-year to approximately $4.680 million from $1.225 million in the same period in 2025.
    • Gross profit for the three months ended September 30, 2026, increased to $2.203 million (66% of gross revenues) from $0.178 million (46% of gross revenues) in the prior year period.
    • Net income for the three months ended September 30, 2026, was $1.397 million ($0.12 per share), compared to a net loss of $0.027 million in the prior year period.
    • Net income for the nine months ended September 30, 2026, was $0.863 million ($0.07 per share), compared to a net loss of $0.060 million in the prior year period.
    • Net cash used in operating activities for the nine months ended September 30, 2026, was $0.366 million, compared to net cash provided of $0.658 million in the prior year period.
    • Cash and cash equivalents, marketable securities, and held-to-maturity investments totaled $10.278 million at September 30, 2026, with no debt outstanding.
    • Working capital was $11.266 million and total stockholders' equity was $16.149 million as of September 30, 2026, up from $13.603 million at December 31, 2025.

  • Guidance and Future Outlook:

    • Management expects to continue optimizing the combined cost structure of Nocopi and Polymeric over time.
    • The Company is focused on strengthening customer relationships, attracting new customers, and expanding applications for existing products.
    • Management is actively searching for accretive acquisition opportunities that have the potential to strengthen the platform, improve cash flow, and offer long-term growth potential.
    • The Company aims to run operations with discipline to grow free cash flow and compound value for shareholders.

  • Business Segments and Product Lines:

    • Licenses, royalties, and fees revenue increased by $1.620 million to $1.731 million in the third quarter 2026 from $0.110 million in the prior year period.
    • Product and other sales increased by $1.323 million to $1.598 million in the third quarter 2026 from $0.275 million in the prior year period, driven by sales from the Polymeric acquisition and higher ink shipments for entertainment and toy products.
    • The Company executed an early renewal and multi-year extension of an existing license agreement, extending the term to June 2030, adding a new product line subject to royalties, and increasing the guaranteed minimum royalty.
    • The Polymeric acquisition added in-house screen and digital ink manufacturing capabilities, a broader commercial footprint, and an established customer base in previously unserved markets.
    • Total operating expenses for the third quarter 2026 were $0.982 million, compared to $0.320 million in the prior year period, primarily due to the inclusion of Polymeric operations and elevated professional fees related to the acquisition.

  • Market and Competitive Landscape:

    • Nocopi maintains core relationships in the entertainment and educational toy markets, with several partnerships spanning more than a decade.
    • The Company continues to pursue additional licensees in the entertainment and toy sectors.
    • The Company seeks acquisitions in core and adjacent segments with defensible market positions, long-standing customer relationships, and experienced teams.

  • Risks and Challenges:

    • Risks include the ability to successfully integrate the Polymeric acquisition and realize expected benefits.
    • Potential adverse impacts on financial condition if expected acquisition benefits are not realized.
    • Unknown liabilities associated with the acquisition.
    • Risks related to gaining new long-term customer relationships or retaining significant existing customers.
    • Risks regarding the loss of intellectual property protections or value.
    • Risks related to cybersecurity attacks, security breaches, and disruptions to information technology systems.
    • Risks associated with changes in customer demand, general economic conditions, and competition.

  • Management Commentary and Tone:

    • Gregory S. Babe, Executive Director of Operations, stated that the Polymeric acquisition marks a milestone in longer-term expansion plans, adding diversified revenue streams that complement royalty and license revenue.
    • Kevin C. Westenburg, President, expressed a focus on positioning the Company for long-term growth through disciplined operations and free cash flow generation.
    • Matthew C. Winger, Chairman and CEO, described the growth approach as balanced and disciplined, emphasizing that growing the existing business remains the first priority while seeking value-accretive acquisitions.
    • Management noted that Polymeric is tracking to expectations and that the expanded team has settled in well with customers remaining through the transition.

  • Other Key Points:

    • The Company acquired Polymeric in May 2026, which contributed to the revenue increase and operating expense growth in the third quarter.
    • The balance sheet includes $490,003 in goodwill and $283,135 in intangible assets as of September 30, 2026, resulting from the acquisition.
    • Long-term receivables increased significantly to $1.788 million as of September 30, 2026, largely related to guaranteed minimum royalties under the renewed license agreement.
    • The Company has no preferred stock issued or outstanding.
    • Common stock outstanding increased to 11,906,664 shares at September 30, 2026, from 10,835,123 shares at December 31, 2025.