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27/08/2026 , 13:02 Covalon Technologies Ltd. - Covalon Reports Fiscal 2026 Third Quarter Results Covalon Reports Fiscal 2026 Third Quarter Results August 27 , 2026 Revenue rises 20 % year - over - year to over $ 10.0 million Gross margin expands to 67.2 % from 46.5 % in the prior year Earnings Per Share of $ 0.10 , more than double the previous quarter Contamination Protection revenue increased 68 % year - over - year and 34 % over the previous quarter MISSISSAUGA , Ontario -- ( BUSINESS WIRE ) -- Covalon Technologies Ltd. ( the " Company " or " Covalon " ) ( TSXV : COV ; OTCQX : CVALF ) , an advanced medical technologies company , today announced its fiscal 2026 third quarter results for the period ended June 30 , 2026. Full financial statements and management's discussion and analysis are available on the Company's profile at www.sedarplus.ca . Brent Ashton , Covalon's Chief Executive Officer , commented , " Covalon's third quarter of fiscal 2026 delivered outstanding results that clearly demonstrate the strong progress that Covalon has made in advancing our company , both strategically and financially . This quarter's revenue , gross margin , and Adjusted EBITDA were each the highest recorded by the Company in any quarter during the last five fiscal years . " Q3 Revenue of more than $ 10.0 million rose 20 % year over year with solid growth in all three of the Company's sales channels . The Company's gross margins of 67.2 % were up from 46.5 % in the prior year . These results in revenue and gross margin were obtained with Operating Expenses in line with the past few years , demonstrating the Company's ability to scale revenue and profits with great efficiency . Adjusted EBITDA was $ 3.0 million , more than triple the prior year . Earnings Per Share was $ 0.10 , which was greater than the sum of the past five quarters combined . The Company closed the quarter with $ 19.4 million in cash and no bank debt , an increase of $ 2.8 million from the prior quarter end . Mr. Ashton added , " In a market growing at roughly 5 % , Covalon's US Vascular Access and Surgical Consumables sales channel grew 51 % , ten times the underlying market growth rate . This growth was fueled by the rapidly increasing adoption of the Company's Contamination Protection solution . " Contamination at vascular access sites is an under - recognized problem with severe consequences . Bloodstream infections kill hundreds of thousands of people globally every year with significant costs to health systems estimated to be in the billions of dollars . Covalon understood the challenge of contamination , built products to help solve for it , and has advanced the Contamination Protection category around it . This pioneering work is now showing up at hospitals , at scientific meetings , and in Covalon's financial results . Third quarter revenue for the solution grew 68 % over the same quarter last year and 34 % over the immediately preceding quarter . Hospitals that started with a single product in a single care unit at a single site are extending to additional product , units , and sites . Covalon's pipeline of hospital opportunities for the Contamination Protection solution is robust both in quantity and in opportunity size . " The growing awareness and importance of Contamination Protection is driving business development opportunities that would not have been available to Covalon a year or two ago . Covalon is now being recognized as a serious player in the medical technology space . " Covalon has the financial foundation and the commercial momentum to execute on its aggressive growth strategy . We are still early , and the opportunity ahead of us is substantial . I remain confident in our ability to deliver for patients , for the clinicians who care for them , and for our shareholders . " Financial Consolidated Interim Summary ( Unaudited ) Three Months Ended June 30 , 2026 2025 Revenue Gross Profit Gross Margin % Operating Expenses $ 10,041,033 $ 6,745,607 67.2 % $ 4,018,397 https://ir.covalon.com/news/news-details/2026/Covalon-Reports-Fiscal-2026-Third-Quarter-Results/default.aspx $ 8,372,427 $ 3,892,495 46.5 % $ 3,971,157 1/4