EvoAir Holdings Reports 231% Revenue Growth in Q3 2026, Despite Net Loss

EvoAir Holdings Inc. reported its financial results for the three and nine months ended May 31, 2026, revealing significant changes in revenue and operational performance compared to the same periods in the previous year. The company generated revenue of $123,574 for the three months ended May 31, 2026, a substantial increase of 231% from $37,306 in the prior year. For the nine-month period, revenue rose by 32% to $211,613, up from $160,359. Despite this growth, the company reported a net loss of $1,078,217 for the three months and $3,121,210 for the nine months, although these figures represent improvements from losses of $1,186,838 and $7,100,730, respectively, in the previous year.

The increase in revenue was primarily attributed to higher sales of EvoAir air-conditioning products, driven by strategic distribution channels and project collaborations. However, the cost of revenue also increased significantly, leading to a gross profit of $6,823 for the three months, down from $28,801, and a gross profit of $10,033 for the nine months, compared to a gross loss of $8,322 in the prior year. The company noted that the gross margin compression was due to higher production costs associated with increased sales volumes.

Operationally, EvoAir Holdings has focused on cost management, resulting in a 12% reduction in operating expenses for the three months ended May 31, 2026, totaling $1,086,651, down from $1,237,464. The nine-month operating expenses decreased significantly by 56% to $3,133,160 from $7,116,685, largely due to lower general and administrative costs and reduced stock-based compensation. The company continues to prioritize operational efficiency while supporting growth initiatives.

As of May 31, 2026, EvoAir's current assets decreased by 17% to $440,734, while current liabilities increased by 37% to $4,413,744, resulting in a working capital deficit of $3,973,010. This widening deficit reflects ongoing investments in operations, partially offset by improved revenue performance. The company is actively pursuing additional funding to support its growth strategy, including plans to uplist on the Nasdaq Capital Market, which is expected to enhance access to capital.

Looking ahead, EvoAir Holdings aims to expand its product offerings and geographical reach while diversifying its revenue streams across various customer segments. The management remains optimistic about the long-term prospects of its HVAC products and is focused on achieving profitability through operational efficiencies and strategic initiatives. The company’s financial statements have been prepared under the assumption of continuing as a going concern, although it has not yet established a sustainable source of revenue sufficient to cover its operating costs.