EvoAir Holdings Reports Revenue Decline but Significant Improvement in Gross Profit and Operating Expenses

EvoAir Holdings Inc. reported its financial results for the three and six months ended February 28, 2026, revealing a decline in revenue and a continued net loss, although with notable improvements in gross profit and operating expenses. The company generated revenue of $67,588 for the three months ended February 28, 2026, down 5% from $71,124 in the same period last year. For the six-month period, revenue decreased by 28% to $88,039 from $123,053. The decline was attributed primarily to lower sales volumes of Ionic Nano Copper Zinc and related products, partially offset by growth in EvoAir air-conditioner sales.

Despite the revenue decline, EvoAir reported a significant improvement in gross profit, which rose to $5,444 for the three months ended February 28, 2026, compared to $1,058 in the prior year, marking a 415% increase. For the six-month period, gross profit turned positive at $3,210, a substantial recovery from a gross loss of $37,123 in the same period last year. This improvement was driven by a 11% reduction in the cost of revenue, which fell to $62,144 for the three months and 47% to $84,829 for the six months, reflecting better cost management.

Operating expenses also decreased significantly, down 21% to $1,009,855 for the three months and 65% to $2,046,509 for the six months. The reduction was primarily due to lower general and administrative expenses, including decreased professional fees and compliance costs. As a result, the loss from operations improved by 21% to $1,004,411 for the three months and by 65% to $2,043,299 for the six months. The net loss attributable to equity holders was $939,020 for the three months and $1,917,162 for the six months, compared to $1,205,822 and $5,761,223, respectively, in the prior year.

EvoAir's balance sheet as of February 28, 2026, showed total assets of $44.36 million, a decrease from $45.69 million as of August 31, 2025. Current liabilities increased by 27% to $4.07 million, primarily due to a rise in amounts due to shareholders, which reached $3.30 million. The company's working capital deficit widened to $3.57 million, reflecting ongoing operational investments and revenue challenges. The company continues to pursue strategic initiatives, including geographical expansion and diversification of revenue streams, to enhance its market position and financial stability.

Looking ahead, EvoAir is focused on expanding its HVAC product offerings and penetrating new markets to drive revenue growth. The company is also preparing to uplist on the Nasdaq Capital Market, which is expected to improve access to capital and strengthen its financial position. Management remains optimistic about the long-term prospects of its products and is committed to addressing current challenges while enhancing operational efficiencies.