Aug 13, 2026, 9:00 AM ETReal Estate

RenX Enterprises Corp. — Second Quarter 2026 Earnings Summary

RENXRENX ENTERPRISES CORP

Financial Performance

Consolidated revenue reached a record $4.26 million in Q2 2026, an increase of approximately 7.5% quarter-over-quarter from $3.96 million in Q1 2026.
First-half 2026 consolidated revenue totaled $8.21 million with a gross margin of 32.7%.
Q2 2026 gross profit was $1.36 million, representing a 31.9% gross margin.
Logistics segment operating income nearly tripled to $258 thousand, with 6.5% sequential revenue growth, marking the second consecutive quarter of positive operating income and net income.
Logistics segment Adjusted EBITDA grew approximately 45% quarter-over-quarter to $523 thousand, compared to $360 thousand in Q1 2026.
Compost Sales segment revenue grew approximately 10.6% quarter-over-quarter to $1.05 million, achieving a gross margin above 60%.
Net loss narrowed to $8.0 million from $9.3 million in Q1 2026; the Q2 loss included approximately $3.8 million of non-cash items, including a one-time loss on debt exchange and non-cash amortization.
Consolidated EBITDA improved to $(4.4) million from $(7.2) million in Q1 2026.
Consolidated Adjusted EBITDA was $(1.773) million in Q2 2026, compared to $(1.585) million in Q1 2026.
Cash increased to $2.16 million at June 30, 2026, from approximately $54 thousand at December 31, 2025.
Stockholders' equity rose to $7.0 million from $4.4 million.

Management expects the Microtec UTM 1200 Turbo Mill to arrive in the U.S. in Q3 2026, with commissioning targeted for the second half of 2026.
The Microtec mill is anticipated to be the most significant driver of business through 2027 and beyond, unlocking production of locally manufactured engineered substrate at gross margins meaningfully above the current blended margin.
Priorities for H2 2026 include extending Logistics segment profitability by growing utilization and margin on contracted activity, including service agreements extending through 2028.
The Compost Sales segment aims to scale sales and ramp the land clearing division, while internalizing a greater share of transportation spend via the Logistics fleet.
Revenue contribution from engineered substrate is expected to follow the commissioning of the Microtec mill.
The land clearing division is expected to moderate the seasonality of Compost Sales segment material sales over time.
The company continues to advance the monetization of legacy real estate assets to support the operating platform.

Logistics Segment: Achieved second consecutive quarter of profitability; driven by higher utilization on contracted hauling activity.
Compost Sales Segment: Revenue growth led by sales of compost, engineered soils, and mulch; includes the land-clearing service line introduced earlier in the year.
Microtec Program: The UTM 1200 Turbo Mill shipped from Germany and is in transit to the Myakka City facility; site preparation including foundations and utility infrastructure is advancing.
Land Clearing Division: Launched on July 28, 2026, securing a first purchase order from Frederick Derr & Company for clearing and grubbing services in Manatee County, with work expected to commence in Q3 2026.
Debt Recapitalization: A legacy $7.2 million debt obligation was exchanged for Series C Convertible Preferred Stock and warrants; derivative liability was eliminated, and substantially all Series B Convertible Preferred Stock was converted to common stock in Q1 2026.

The Myakka City facility is positioned as one of the few U.S. facilities capable of processing raw organic material into precision-milled, specification-grade growing media in a single location.
The strategy aims to replace mined and imported inputs with locally produced substrate, shortening supply chains and enhancing quality control.
Management is working with advisor Robert Jacobson on discussions with prospective bulk purchasers of engineered substrate as commissioning advances.

No assurance that the UTM 1200 system will be deployed on the anticipated timeline or perform as expected upon installation.
Potential risks include shipping, customs, construction, and integration risks associated with the mill.
Risks include the ability to scale throughput, expand the customer book, maintain adequate liquidity and working capital, and satisfy or refinance debt maturities.
Risks include the ability to maintain Nasdaq listing status and reliance on third-party technologies, partners, and customers.
Risks include the availability and cost of feedstock, market acceptance of engineered growing media, and general economic or geopolitical conditions.

CEO David Villarreal described the quarter as providing "proof points" with record revenue, sequential growth in primary segments, and consecutive profitability in Logistics.
Management characterized the second half of 2026 as a period of "execution" focused on landing the mill, commissioning it, and converting throughput into higher-margin engineered substrate.
The tone regarding the land clearing division is positive, noting it allows the company to earn service fees while feeding the platform with low-cost processing feedstock.

The Microtec UTM 1200 Turbo Mill is the centerpiece of the company's engineered substrate strategy and is expected to operate at the center of an integrated campus combining organics processing, advanced milling, blending, and in-house logistics on an 80+ acre site.
The land clearing division earns service fees and delivers material to the Myakka City platform as low-cost feedstock rather than to a landfill.
The company recorded a $157 thousand non-cash inventory valuation adjustment in the Compost Sales segment for Q2 2026.
A one-time loss of $2.215 million was recorded in Q2 2026 related to the exchange of a legacy debt obligation into Series C Convertible Preferred Stock and warrants.
The company holds a portfolio of legacy real estate assets intended for monetization to fund the core platform.