Record Quarterly Revenue of $1.4 Million, Up 28% Year-over-Year; First-Half Revenue Up 26% compared to the corresponding period in 2025
Deliberate Investment in Building the U.S. Direct-Sales Foundation Aimed at Unlocking Significant Long Term Growth Opportunities
VANCOUVER, British Columbia, Aug. 14, 2026 (GLOBE NEWSWIRE) -- Beyond Oil Ltd. (TSX: BOIL) (OTCQB: BEOLF) (“Beyond Oil” or the “Company”), a food-tech innovation company dedicated to reducing health risks associated with fried food while lowering operational costs, improving food quality, minimizing waste and enhancing sustainability, today reported its financial results for the second quarter ended June 30, 2026, and provided a business update.
“Our Q2 2026 results delivered record quarterly revenue while we continued to make deliberate investments in the United States. direct-sales infrastructure required to support substantially larger enterprise customers,” said Jonathan Or, CEO of Beyond Oil. “Revenue grew 28% year-over-year to $1.4 million in Q2 and 26% to $2.7 million for the first half of the year, compared to the corresponding period in 2025, even as we deliberately directed significant focus to expanding our U.S. sales force and building the direct-sales infrastructure required to serve the significantly larger potential customers we are actively pursuing. We believe this U.S. direct-sales foundation will translate into meaningfully stronger margins over time and give Beyond Oil direct ownership of its most strategic customer relationships as the business scales. Building this infrastructure and winning these tier-one U.S. enterprise customers requires longer sales cycles and deeper commercial engagement than working through distributors, but we believe it positions Beyond Oil to serve them at a scale that could drive outsized long-term value for shareholders. Everything we saw in Q2, including the second ownership group of a top-tier U.S. supermarket brand approved subsequent to quarter-end, reinforces the trajectory we are building, with the goal of generating maximum long-term value for our shareholders and customers alike.”
The following disclosure does not constitute full disclosure of the Company’s financial and operational condition and is qualified in its entirety by, and should be read in conjunction with, the Company’s Management Discussion and Analysis for the period ending June 30, 2026 (the “MD&A”) and corresponding financial statements available at www.sedarplus.ca.
Q2 2026 Financial Highlights
*All Figures in USD unless specifically mentioned otherwise
Revenue Growth
Beyond Oil reported revenue of $1.396 million for Q2 2026, representing a 28% year-over-year increase compared to $1.093 million in Q2 2025, and an 11% sequential increase compared to $1.255 million in Q1 2026. Revenue for the six months ended June 30, 2026 was $2.651 million, an increase of 26% compared to $2.104 million for the six months ended June 30, 2025.
Gross Margin – Supporting End-Customer Adoption and Scale
Gross profit for Q2 2026 was $0.589 million, compared to $0.615 million in Q2 2025. Gross margin of 42.2% for Q2 2026 (compared to 56.3% for Q2 2025) reflected inventory-mix and channel-mix dynamics with the Company’s transition to a direct-sales model, including servicing costs for U.S. customers in the early stages of their rollout. The decrease in gross margin was also due to initial investments and price fluctuations as part of our expansion into new markets. However, due to parallel efforts to improve our costs basis of inventory produced, we expect our gross profit to increase in the coming quarters, while supporting our expansion to these new markets. Notably, the direct-sales model we are building in the U.S. and transitioning to in other certain geographies does not carry the distributor economics of the Company’s historical distributors sales, and therefore, management expects gross margin to reflect the growing contribution of this higher-margin channel as the U.S. customer base scales in the second half of 2026. Gross margin for the six months ended June 30, 2026, was 47.4%, compared to 53.6% for the six months ended June 30, 2025.
Operating Expenses – Investment in U.S. Commercial Infrastructure
Total operating expenses for Q2 2026 were $3.013 million, compared to $2.374 million in Q2 2025. The increase was primarily driven by continued investment in the Company’s U.S. commercial expansion, including a 63% year-over-year increase in sales and marketing expenditures (from $0.994 million to $1.617 million), reflecting the hiring of U.S. direct-sales personnel, expansion of the Company’s international sales team, expanded product pilot activity and customer training initiatives supporting the Company’s revenue execution strategy and the direct account-based commercial model, as detailed below (See “Recent Business Highlights”). General and administrative expenses of $1.163 million decreased modestly from $1.184 million in the prior-year quarter, primarily reflecting lower share-based compensation, partially offset by increased wages and professional fees. Research and development expenses of $0.233 million increased modestly from $0.196 million in the prior-year quarter, reflecting higher wages and sub-contractor expenses. Total non-cash share-based compensation expense included in operating expenses was $0.573 million for Q2 2026.
Liquidity & Balance Sheet
The Company ended the quarter with cash, cash equivalents and short-term deposits of $4.535 million as of June 30, 2026, compared to $8.820 million on December 31, 2025. However, as of the end of the quarter, the company had trade receivables of $3.077 million, principally reflecting the timing of a significant Q2 commercial shipment for which cash collection is expected to occur in the ordinary course of business in subsequent periods, which is expected to further strengthen the Company’s balance sheet. Additionally, as of the end of the quarter, the Company had positive working capital of $9.037 million, and a current ratio (being current assets divided by current liabilities) of approximately 7.4x. Total shareholders’ equity was $12.328 million.
Net Loss
Net loss for Q2 2026 was $2.088 million, or $(0.03) per basic and diluted share, compared to a net loss of $0.853 million, or $(0.01) per basic and diluted share, for Q2 2025. The prior-year quarter included approximately $1.7 million of non-cash gains from fair-value adjustments to derivative warrant liabilities, compared to approximately $0.3 million of such gains in the current-year quarter. For the six months ended June 30, 2026, net loss was $3.951 million, or $(0.05) per share, compared to $11.861 million, or $(0.18) per share, for the six months ended June 30, 2025; the prior-year first-half comparison was substantially affected by non-cash fair-value adjustments to derivative warrant liabilities recorded in the first quarter of 2025.
Recent Business Highlights
U.S. Supermarket Vertical Expansion: In March 2026, Beyond Oil announced its entry into the U.S. supermarket segment through a multi-phase commercial rollout with a top-tier U.S. supermarket brand across an initial group of stores. Subsequent to quarter-end, on July 30, 2026, the Company was approved by a second ownership group of the same brand for a commercial rollout across 14 additional high-volume supermarket locations, four of which were already operational at the time of the announcement. The applicable brand is ranked among the top 30 North American food retailers according to Progressive Grocer’s 2025 PG 100 ranking.
Commercial Momentum in U.S. Fast-Food and Casual Dining: In May 2026, following extensive pilot activity that began in late 2025 and expanded during the first quarter of 2026, the Company commenced initial commercial sales with a U.S.-based fast-food chain with hundreds of locations across the U.S and internationally, with initial rollout across three franchisees in three U.S. states. In the premium casual dining segment, the Company was approved as a vendor by a U.S. chain, with initial rollout across 70 restaurants in the southeastern U.S., and expects to extend the rollout across the chain’s broader U.S. restaurant group. Distribution of the Beyond Oil product through Sysco Los Angeles, a subsidiary of Sysco Corporation, commenced during the first quarter of 2026; approved-vendor status and an assigned SUPC enable additional Sysco operating companies throughout the U.S. to onboard the product if they choose to do so, creating a scalable pathway for broader distribution.
Advancing the U.S. Enterprise Pipeline: Beyond Oil is actively advancing a portfolio of tier-one U.S. enterprise opportunities across its target verticals. These engagements typically involve longer and more complex commercial cycles than the Company's historical distributor sales, and are the primary focus of the Company's U.S. direct-sales investment in 2026. In support of these pursuits, the Company has continued to build out its U.S. direct-sales team and to refine the underlying commercial infrastructure, including its ideal-customer profile, pricing framework, and pilot-to-rollout process, based on execution learnings across an expanding base of multi-location commercial customers. Management believes that successful conversion of such tier-one U.S. enterprise customers into broad, recurring adoption could materially change the Company's revenue scale, and considers these engagements the highest-value use of the Company's commercial resources at the current stage.
Revenue Execution Phase and Global Partnership Portfolio Refinement: In May 2026, the Company announced the next phase of its global commercialization strategy: a direct account-based commercial model focused on tier-one, multi-location strategic customers across the quick-service, casual dining, hotels, catering, food retail, and convenience verticals, with the U.S. as the primary growth market. In parallel, Beyond Oil deliberately streamlined its international partnership portfolio, discontinuing its master distribution agreements with Latitude Ltd. (U.S. and Ukraine) and T&J Oil Pty Ltd. (Australia), and transitioning its Indian distribution relationship (Deep Frying Solutions Pvt Ltd) to a non-exclusive basis. The direct-sales structure carries meaningfully more attractive economics than the Company's historical distributor model, positioning Beyond Oil to capture the full value of its tier-one U.S. enterprise engagements and to support a structurally higher gross margin as the commercial base scales.
Selected Financial Highlights
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| (U.S. dollars in thousands, except per share) | ||||||||||||
| Revenue | $ | 1,396 | $ | 1,093 | $ | 2,651 | $ | 2,104 | ||||
| Gross profit | 589 | 615 | 1,256 | 1,128 | ||||||||
| Gross margin | 42.2% | 56.3% | 47.4% | 53.6% | ||||||||
| Total operating expenses | (3,013 | ) | (2,374 | ) | (5,746 | ) | (4,588 | ) | ||||
| Loss from operations | (2,424 | ) | (1,759 | ) | (4,490 | ) | (3,460 | ) | ||||
| Net loss | $ | (2,088 | ) | $ | (853 | ) | $ | (3,951 | ) | $ | (11,861 | ) |
| Basic and diluted loss per share | $ | (0.03 | ) | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.18 | ) |
| As of June 30, 2026 | As of December 31, 2025 | |||
| (U.S. dollars in thousands) | ||||
| Cash and cash equivalents | $ | 4,185 | $ | 3,820 |
| Short-term deposit | 350 | 5,000 | ||
| Cash and cash equivalents plus short-term deposit | $ | 4,535 | $ | 8,820 |
| Total current assets | 10,449 | 13,675 | ||
| Total assets | $ | 13,975 | $ | 17,211 |
| Total current liabilities | 1,412 | 1,962 | ||
| Total shareholders' equity | $ | 12,328 | $ | 15,083 |
Investor Relations Update
As Beyond Oil matures and expands its commercial footprint and its relationships with investors globally, the Company seeks to maintain strong engagement with capital markets participants across its key markets. Accordingly, on July 29, 2026, the Company announced that it had engaged CapitaLynx Ltd. (doing business globally as "Arx") as its global capital markets and investor relations advisor. The Company and Arx have subsequently expanded the scope of their engagement for a period of sixty (60) days commencing August 14, 2026, during which Arx will provide the Company with expanded, technology-enabled cross-border investor targeting, engagement and research services, including expanded access to Arx's proprietary Wall Street Wire investor coverage network. In consideration for the expanded scope, the Company will pay Arx an additional one-time cash fee of US$22,000, in addition to the ongoing monthly retainer previously disclosed, payable no later than thirty (30) days following August 14, 2026. Arx remains an arm's-length party to the Company, does not hold or have the right to acquire any of the Company's securities, and no securities will be issued as compensation. Arx is a leading capital markets and investor relations firm with cross-border expertise serving public company issuers listed on North American exchanges, supporting engagement with both institutional and retail investor audiences through its advisory and a propriatary set of technologies.
About Beyond Oil Ltd.
We all love fried food. Let’s make it better. Not by changing what people love. By improving the system behind it. Beyond Oil Ltd. (TSX: BOIL) (OTCQB: BEOLF) is a food-tech innovation company on a mission to help foodservice operators improve fried food across every dimension that matters: quality, health, consistency, safety, sustainability and profitability. We achieve these outcomes by improving the system behind every kitchen, the frying performance and oil management that determine what lands on the plate. The Company’s patented technology, cleared by the FDA and Health Canada, integrates into existing kitchen workflows to improve frying performance and oil management, helping operators deliver more consistent food, strengthen operational control and reduce oil waste. Beyond Oil’s solution serves restaurant chains, supermarkets, hotels, catering, institutions and industrial frying operations worldwide, turning frying into a measurable, repeatable and scalable brand standard. The result is a better frying standard, helping every fryer, every shift and every plate live up to the food people love. For more information, please visit: www.beyondoil.co.
Forward-Looking Statements and Information
This news release contains “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of other relevant securities legislation, including applicable securities laws in Canada, which reflect Beyond Oil Ltd.’s current views with respect to, among other things, its operations and financial performance (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions and which are in turn based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of Beyond Oil Ltd. are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “expect”, “anticipate”, “believe”, “foresee”, “could”, “estimate”, “goal”, “intend”, “plan”, “seek”, “strive”, “will”, “may” and “should” and similar expressions. Although Beyond Oil Ltd. believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, certain factors, risks and uncertainties, which are described from time to time in our documents filed with the securities regulators in the USA and Canada, as well as factors not presently known to Beyond Oil Ltd., or that Beyond Oil Ltd. currently believes are not material, could cause actual results to differ materially from those contemplated or implied by forward-looking statements. Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release. Except as required by law, Beyond Oil Ltd. undertakes no obligation to publicly update or revise any forward-looking statements, whether written or oral, whether as a result of new information, future events or otherwise.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
Company Contact:
Adi Olesker, VP of Investor Relations
Phone: +972-50-694-2517
adio@beyondoil.co
Investor Relations Contact:
Arx Investor Relations
North American Equities Desk
BOIL@arxhq.com
