Name: New Horizon Aircraft Ltd. Q1 2026 Earnings Call
Start: 2025-10-10T12:37:46.000Z

Executive Summary

Pre‑revenue quarter; operating expenses rose as engineering accelerated and stock‑based comp increased; reported net loss was $CAD 10.9M and cash rose to $CAD 16.3M from financing and warrant exercises .
Engineering and program execution progressed: platform architecture completed; main wing propulsion units fabricated and under test; full‑scale hybrid eVTOL targeted for initial testing in ~18 months; management reiterated “more than 18 months of working capital” and access to non‑dilutive funding .
Material weakness in disclosure controls persisted (inadequate separation of financial responsibilities), targeted for remediation by FY2026 year‑end .
Versus S&P Global consensus: revenue in line at $0*, EPS consensus is negative but not strictly comparable due to currency; EBITDA was below consensus (actual −$4.26M vs est. −$3.54M USD) — bold negative surprise likely driven by higher OpEx and warrant fair‑value changes*.

What Went Well and What Went Wrong

Program milestones and schedule confidence: “we made further progress in the first quarter of fiscal 2026 that has us well prepared to reach our target of having the full‑scale aircraft be ready for testing in 18 months” — CEO Brandon Robinson .
Liquidity runway and funding mix: “sufficient capital to ready our full‑scale prototype for testing in 18 months” and “more than 18 months of working capital” supported by streamlined OpEx and non‑dilutive government funding — CFO Brian Merker .
Strengthened balance sheet: quarter‑end cash was $CAD 16.3M; net financing cash inflow was $CAD 11.2M; 2.9M warrants exercised and $CAD 8.25M raised via Sales Agreement in Q1 2026 .

Loss widened: net loss increased to $CAD (10.9)M from $(4.9)M in Q3 2025; operating expenses nearly doubled YoY as engineering and stock‑based compensation ramped .
Non‑cash headwind: change in fair value of warrants added $CAD 5.14M to other expenses, contributing to the larger quarterly loss .
Internal control weakness persisted: disclosure controls “not effective” due to inadequate separation of financial responsibilities; remediation ongoing and targeted by FY2026 year‑end .

Metric	Q2 2025 (Nov 30, 2024)	Q3 2025 (Feb 28, 2025)	Q1 2026 (Aug 31, 2025)
Revenue ($CAD Millions)	$0.0	$0.0	$0.0
Operating Expenses ($CAD Millions)	$3.27	$3.55	$5.91
Loss from Operations ($CAD Millions)	$(3.27)	$(3.55)	$(5.91)
Total Other Income/(Expense) ($CAD Millions)	$(22.94)	$1.39	$4.99
Net Income (Loss) ($CAD Millions)	$19.66	$(4.94)	$(10.90)
Basic EPS (CAD)	$0.83	$(0.17)	$(0.29)
Cash & Equivalents ($CAD Millions)	$0.89	$9.20	$16.27

Segment breakdown:

Reportable Segments	Commentary
Single segment	CODM reviews consolidated results; company is pre‑revenue and operates one reportable segment .

KPIs:

KPI	Q2 2025	Q3 2025	Q1 2026
Shares Outstanding (Period End)	24,574,247	31,230,914	39,558,366
Warrants Outstanding (@$11.50 USD)	12,065,375	12,065,375	12,065,375
Warrants Outstanding (@$0.75 USD)	5,700,000	3,210,000	310,000
Net Cash Used in Operating Activities ($CAD Millions)	n/a (six months: $(4.18))	n/a (nine months: $(6.81))	$(2.36) (three months)

Metric	Period	Previous Guidance	Current Guidance	Change
Full‑scale prototype readiness	Q1 2026 → ~18 months	Not previously specified	“Ready for initial testing in 18 months”	Raised specificity (timeline set)
Liquidity runway	Current	Not previously specified	“More than 18 months of working capital”	New disclosure
Engineering milestones	Current	n/a	Platform architecture completed; main wing propulsion units fabricated and testing	Progress update
Focus areas for Q2 FY26	Next quarter	n/a	Full‑scale power/aero systems, partnerships, supply chain expansion	Operational priorities
Financial guidance (revenue, margins, OpEx, OI&E, tax, dividends)	FY26/Q2	Not provided	Not provided	Maintained (no quantitative guidance)

No earnings call transcript was available for Q1 2026; table reflects themes from MD&A and disclosures.

Topic	Previous Mentions (Q2 2025)	Previous Mentions (Q3 2025)	Current Period (Q1 2026)	Trend
Certification pathway (TCCA/FAA; 3C partnership)	Initial regulator discussions; 3C engagement	3C partnership; certification basis development; multi‑year process	Continued engagement; program execution toward full‑scale testing	Steady progress
Government funding (INSAT/DAIR, grants)	DAIR grant approved; SRED receipts	Additional DAIR; Air Force grant context; liquidity from securities	INSAT proposal aligned with key tech areas; expects update in 2025	Funding pipeline developing
Dual‑use (civil/military)	Highlighted as model and risk mitigation	Emphasized benefits and uncertainty	Continued emphasis	Consistent messaging
Supply chain/partnerships	Building vendor relationships	Outsourcing and Tier‑1 suppliers highlighted in risk factors -	Q2 FY26 focus on partnerships and supply chain expansion	Scaling activity
Nasdaq compliance/listing	In process; Bid Price and continued listing standards risks -	Regained compliance with equity standard; panel monitor one year -	n/a this quarter	Improved status
Internal controls	Not effective; remediation plan underway	Not effective; remediation continues	Not effective; aiming for remediation by FY2026 year‑end	Working toward remediation

Prepared remarks: “we made further progress in the first quarter of fiscal 2026… target… full‑scale aircraft be ready for testing in 18 months” — Brandon Robinson, CEO .
Strategic priorities: “development of full‑scale power and aerodynamic systems, key technical partnerships, and supply chain expansion” — CEO .
Liquidity stance: “with added resources from favorable funding efforts in 2025, we believe we have sufficient capital to ready our full‑scale prototype for testing in 18 months” — Brian Merker, CFO .

No Q1 2026 earnings call transcript was available; no Q&A themes to report this quarter.

Metric	Q1 2026 Consensus (USD)	Q1 2026 Actual	Notes
Revenue	$0.00*	$0.00 (CAD)	Pre‑revenue; in line*
Primary EPS	−$0.0899*	−$0.29 (CAD)	Currency mismatch limits direct comparison*
EBITDA	−$3.54M*	−$4.26M (USD)*	EBITDA below consensus — bold miss*

Additional coverage context:

Primary EPS – # of Estimates: 2 for Q1 2026; 4 for Q2 2026*.
Revenue – # of Estimates: 1 for Q1 2026; 3 for Q2 2026*.
Values retrieved from S&P Global.*

Horizon remains pre‑revenue but is executing to plan, with concrete engineering milestones and an 18‑month prototype‑testing timeline — a key narrative driver for the stock .
Liquidity improved (cash $CAD 16.3M), backed by warrant exercises and Sales Agreement capacity; management cites >18‑month runway — reduces near‑term financing risk perception .
Quarterly loss widened, driven by higher R&D/G&A and non‑cash warrant fair‑value items — expect continued OpEx elevation as program scales .
Internal controls remain a watch item; remediation by FY2026 year‑end is an operational milestone to monitor for governance‑sensitive investors .
Consensus expectations reflect limited coverage; revenue in line at zero; EBITDA came in weaker than expected — underscores the cost ramp inherent in near‑term execution*.
Near‑term trading catalysts: prototype milestone updates, government funding decisions (INSAT), and any partnership/supply‑chain announcements that validate execution trajectory .
Medium‑term thesis hinges on certification pathway credibility, dual‑use opportunity, capital access, and maturation of supply chain — track disclosures and MD&A for progress - -.