Executive Summary

Revenue of $1.385M grew 188% year over year and 5% sequentially; GAAP EPS was ($0.09) while non-GAAP EPS was ($0.03) as operating expenses rose with hiring and scaling; Adjusted EBITDA was ($0.450)M . Versus S&P Global consensus, revenue modestly beat ($1.385M vs $1.26M*), while non-GAAP EPS slightly missed (($0.03) vs ($0.025)), and Adjusted EBITDA missed (($0.450)M vs ($0.260)M) .*
FY26 revenue guidance maintained at $4.0–$6.0M; management reiterated milestone-driven R&D revenue variability and focus on positioning for initial commercial product revenue in FY26 .
Balance sheet strengthened via follow-on equity, boosting cash and equivalents to $38.1M and no long-term debt, enabling accelerated manufacturing readiness (outsourced wafer activity ~5x) and team expansion .
Strategic catalysts: new NASA quantum-related contract; growing AI infrastructure demand for optical interconnect components; increased wafer-scale test capabilities; near-term defense/aerospace deliveries and evaluation orders; potential initial commercial revenue in FY26 .

What Went Well and What Went Wrong

What Went Well

Strong revenue growth with consistent milestone execution: $1.385M revenue (primarily R&D contracts), hitting all planned milestones; non-GAAP loss narrowed to $0.437M on higher interest income and scale .
Capital and manufacturing readiness improved materially: cash/equivalents rose to $38.1M; outsourced wafer fabrication increased nearly fivefold; significant test equipment acquired “at nearly one cent on the dollar,” strengthening qualification capacity .
Government and commercial traction: new NASA contract; deepening defense/aerospace and AI infrastructure engagements; management sees multiple transceiver component use-cases and attractive margin potential as hyperscalers shape the supply chain .

What Went Wrong

Profitability pressure: GAAP net loss widened sequentially to ($1.493)M as payroll and stock-based compensation increased with hiring; Adjusted EBITDA fell to ($0.450)M from ($0.113)M in Q4 .
Slight non-GAAP EPS miss vs consensus: ($0.03) actual vs ($0.025), and larger Adjusted EBITDA loss vs consensus ([$0.450]M vs [$0.260]M), reflecting investment ahead of commercialization and higher OpEx .*
Government funding cadence slower amid shutdown and agency delays, elongating execution cycles for bids and new awards, though guidance not predicated on new awards .

Financial Results

Consolidated P&L and Key Metrics (oldest → newest)

Metric	Q3 2025	Q4 2025	Q1 2026
Revenue ($USD)	$1,254,966	$1,317,000	$1,385,000
Cost of Revenue ($USD)	$413,085	$779,000	$701,000
Gross Margin %	67.1% (calc from revenue/cost)	40.9% (calc)	49.4% (calc)
Loss from Operations (EBIT) ($USD)	($831,470)	($969,000)	($1,608,000)
EBIT Margin %	(66.3%) (calc)	(73.6%) (calc)	(116.1%) (calc)
GAAP Net Income (Loss) ($USD)	$1,460,893	($859,000)	($1,493,000)
GAAP Diluted EPS ($USD)	$0.11	($0.05)	($0.09)
Non-GAAP Net Income (Loss) ($USD)	$6,965	($112,000)	($437,000)
Non-GAAP EPS – Basic/Diluted ($USD)	—	($0.01)	($0.03)
Adjusted EBITDA ($USD)	$109,252	($113,000)	($450,000)
Adjusted EBITDA Margin %	8.7% (calc)	(8.6%) (calc)	(32.5%) (calc)

Notes: Percentages are calculated from cited values; Non-GAAP EPS for Q3 not disclosed in per-share form in the filing .

Year-over-Year (Q1 2026 vs Q1 2025)

Metric	Q1 2025	Q1 2026	YoY Change
Revenue ($USD)	$481,000	$1,385,000	+188% (calc)
GAAP Net Loss ($USD)	($730,000)	($1,493,000)	(↑) (calc)
GAAP EPS ($USD)	($0.06)	($0.09)	(worse) (calc)
Non-GAAP Net Loss ($USD)	($557,000)	($437,000)	Improved (calc)
Adjusted EBITDA ($USD)	($457,000)	($450,000)	Slightly improved (calc)

Estimates vs Actuals (Q1 2026)

Metric	Consensus	Actual	Surprise
Revenue ($USD)	$1,260,000*	$1,385,000	+$125,000 (beat) (calc) *
Primary EPS ($USD)	($0.025)*	($0.03)	($0.005) (miss) (calc) *
Adjusted EBITDA ($USD)	($260,000)*	($450,000)	($190,000) (miss) (calc) *
Target Price ($USD)	$25.50*	—	—

Values with asterisks are retrieved from S&P Global.*

KPIs

KPI	Q3 2025	Q4 2025	Q1 2026
Cash & Equivalents + CDs ($USD)	$15,865,659	$15,740,000	$38,147,000
Cash ($USD)	$3,866,000	$3,628,000	$25,920,000
Certificates of Deposit ($USD)	$12,000,000	$12,112,000	$12,227,000
Shares Outstanding (Basic)	12,472,061	15,824,222	16,141,153
Book Value per Share ($USD)	$1.44	$1.13	$2.53
Debt	No long-term debt	No long-term debt	No long-term debt

No segment revenue breakdown disclosed; revenue primarily from R&D contracts .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD)	FY 2026	$4.0–$6.0M	$4.0–$6.0M	Maintained

No explicit guidance provided for margins, OpEx, OI&E, tax rate, or dividends .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2: Q3 2025)	Previous Mentions (Q-1: Q4 2025)	Current Period (Q1 2026)	Trend
AI/technology initiatives	OFC and Laser Focus World features on quantum dot lasers; building for AI and co-packaged optics	Manufacturing breakthrough with Thorlabs; multiple AI/defense program wins	“Unprecedented demand” for optical components for AI; focus on high-speed transceiver components and quantum dot lasers	Strengthening
Supply chain/manufacturing readiness	Scaling readiness; NASDAQ uplist and capital raise to support commercialization	Enhanced readiness, expanded test/validation, supply chain partnerships	Outsourced wafer fabrication ~5x; major test asset acquisition; new directors in supply chain and tech enablement	Accelerating
Government contracts	DOE SWIR photodetectors; active defense/aerospace programs	NASA entangled photon sources; Navy imaging sensors and photodetectors	New NASA quantum-related contract; selective bidding; 3–7 new contracts targeted for FY26	Stable/selective
Commercialization trajectory	“Transition to commercialization” near future	FY26 priority to position for commercialization	Goal to achieve initial commercial product revenue during FY26; sample deliveries and NRE discussions ongoing	Advancing
Macro/regulatory (gov’t funding)	—	—	Shutdown/agency delays slowing bids/execution, not embedded in guidance assumptions	Headwind
R&D execution	—	—	Hit all planned milestones; milestone-based revenue recognition reminder	Consistent

Management Commentary

“The rapid acceleration of AI is driving unprecedented demand for optical component technologies… we are uncovering greater opportunity aligned with our offerings and product roadmap.” — CEO Jonathan Klamkin .
“With this strong financial position, plus the revenue generated from R&D contracts, we continue to execute our strategic priorities and accelerate our transition to commercialization.” — CEO .
“During the quarter, we closed a follow-on public offering… raising net proceeds of $23.4 million… We expect this additional cash will support our plan to transition from exclusively R&D revenue to initial commercial product revenue.” — CFO Christopher Stewart .
“We increased wafer fabrication levels at our foundry partners nearly fivefold and made an investment in wafer-scale test capabilities.” — CEO .

Q&A Highlights

Pipeline and end-markets: Active engagements expanding in defense/aerospace and AI infrastructure; recent sample deliveries and custom NRE; multiple use-cases across low-to-high speed transceiver components .
Manufacturing capacity/readiness: Current external fab capacity supports defense/aerospace and optical components; larger consumer volumes would require additional capacity investment .
Commercialization timing: Management aims for initial commercial product revenue during FY26, with foundation-building via sample deliveries and NRE commitments ahead of volume .
Cash runway and investments: Cash expected to be sufficient to reach initial revenue; positive but contingent on market and capacity investments for rapid growth .
Government shutdown impact: Slower bid reviews and contract execution across agencies; guidance not reliant on these new awards .

Estimates Context

Revenue beat consensus ($1.385M actual vs $1.260M*) by ~$0.125M; non-GAAP EPS modestly missed (($0.03) vs ($0.025)); Adjusted EBITDA missed (($0.450)M vs ($0.260)M), reflecting higher OpEx from hiring and scaling .*
FY26 revenue consensus sits near the middle of guidance ($5.52M* vs $4.0–$6.0M guide), suggesting limited need to change top-line models barring milestone timing shifts.*
Target price consensus mean at $25.50*; Consensus recommendation text unavailable.* Values retrieved from S&P Global.*

Key Takeaways for Investors

Top-line momentum with milestone execution continues; Q1 revenue beat consensus, though profitability reflects investment ahead of commercialization .*
Strengthened balance sheet (cash/equivalents $38.1M, no long-term debt) provides flexibility to accelerate manufacturing readiness and support initial product revenue in FY26 .
AI infrastructure optical components opportunity is broadening (pluggables, short/mid-reach, arrays), where Aeluma’s scalable manufacturing could be a cost and performance differentiator .
Watch for initial commercial revenue prints, sample-to-qualification progression, and NRE commitments as leading indicators of the transition timeline .
Revenue cadence may remain lumpy due to milestone timing; R&D revenue provides non-dilutive funding while commercial pipeline matures .
Government funding headwinds (shutdown, delays) push focus further toward commercial deals; selective bidding on larger, strategically aligned programs continues .
Near-term trading catalysts: contract wins (NASA/DoD), additional fab/test qualifications, disclosures on design wins/initial orders; medium-term thesis hinges on scaling transceiver components and quantum dot lasers into AI infrastructure with improving unit economics .

Additional Sources

Q1 FY26 8-K 2.02 and Exhibit 99.1 press release .
Q4 FY25 8-K 2.02 and Exhibit 99.1 press release .
Q3 FY25 8-K press release .
Q1 FY26 earnings call transcript .

Values marked with asterisks are retrieved from S&P Global.

Aeluma, Inc. (ALMU)·Q1 2026 Earnings Summary