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ReefIQ™ launched commercially, and a US$30 million unsecured credit facility commitment, drawn only as needed, adds balance-sheet flexibility with no dilution.

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AUSTIN, Texas — MindWalk Holdings Corp. (“MindWalk”) (NASDAQ: HYFT), a Bio-Native AI company, today reported financial results for its fiscal 2027 first quarter ended July 31, 2026. The quarter marked the commercial launch of ReefIQ™, MindWalk’s data platform, and the start of its shift toward recurring, platform-based revenue.

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  • Revenue increased 21.3% year over year to $3.8 million.
  • Gross profit increased 47.1% to $2.2 million; gross margin expanded to 58.6% from 48.3%.
  • Net cash used in operating activities declined to $4.0 million from $4.2 million, even as MindWalk stepped up sales and marketing investment behind the ReefIQ™ launch and enterprise rollout.
  • Net loss from continuing operations was $6.1 million, or $0.13 per share, compared with $4.1 million, or $0.09 per share, reflecting planned investment in the commercial infrastructure for ReefIQ™ enterprise adoption.

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  • Commercially launched ReefIQ™, MindWalk’s data platform, in June, and is in active negotiations with multiple large pharmaceutical companies on enterprise deployments.
  • Roughly 80% of the commercial funnel by value now sits in partnership-structured engagements rather than discrete projects, spanning data management, ReefIQ, and multi-target discovery.
  • Validated a production deployment on AMD Instinct GPUs with engineering partner AMD and Vultr, giving ReefIQ™ the compute capacity to onboard enterprise clients and run more programs at lower cost as recurring revenue scales.
  • Subsequent to quarter-end, obtained a binding commitment for a senior unsecured revolving credit facility of up to US$30 million at a fixed 7.00% rate, with no financial maintenance covenants, no warrants or conversion feature, and no pledge of assets, providing the balance sheet to scale ReefIQ™ enterprise onboarding without dilution.

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“We delivered a strong quarter, with revenue up 21% and gross margin expanding to 59%, while launching ReefIQ™ into a market moving toward exactly what we built,” said Jennifer Bath, PhD, President and Chief Executive Officer of MindWalk. “Our discovery business, which pairs wet-lab biologics with in silico capabilities for 19 of the top 20 pharmaceutical companies, is the foundation. On top of it, ReefIQ opens the door to enterprise partnerships of a scale well beyond our historical recurring agreements, and new partner engagements under discussion are increasingly structured as platform partnerships, where we share in the economics of the assets we help create. The larger loss this quarter reflects deliberate investment in ReefIQ’s enterprise rollout.”

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“The US$30 million facility we announced today gives us the flexibility to fund that rollout as needed, without issuing a single share,” continued Dr. Bath. “No warrants or conversion feature, and no pledge of our assets. Our commercial model is shifting to recurring, compounding revenue with ReefIQ at its center, and this gives us the balance sheet to make that shift on our own terms.”

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Article contentFiscal First Quarter 2027 Financial SummaryArticle contentQuarter ended July 31 (in thousands of Canadian dollars, except per-share data)Article content

Metric

FQ1 2027

FQ1 2026

Change

Revenue

3,834

3,161

+21%

Gross profit

2,246

1,527

+47%

Gross margin

58.6%

48.3%

+10.3 pts

Total operating expenses

8,375

5,686

+47%

Operating loss

(6,129)

(4,159)

-47%

Net loss from continuing operations

(6,085)

(4,088)

-49%

Net loss for the quarter (1)

(6,085)

(2,959)

-106%

Loss per share, continuing operations

(0.13)

(0.09)

(0.04)

Net cash used in operating activities

(4,042)

(4,213)

+4%

Adjusted EBITDA from continuing operations

(5,091)

(3,702)

-38%

Article content(1) The prior-year period includes $1.1 million of net income from discontinued operations. There were no discontinued operations in the current period.Article contentNon-IFRS Measures.Article content This release includes Adjusted EBITDA, a non-IFRS financial measure defined as net loss before income taxes, amortization and depreciation, interest, foreign exchange gains and losses, and share-based payments. Management uses Adjusted EBITDA to evaluate operating performance. It has no standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. A reconciliation of net loss to Adjusted EBITDA is provided at the end of this release.Article contentFiscal First Quarter Financial ResultsArticle content

Revenue for the three months ended July 31, 2026, was $3.8 million, up 21.3% from $3.2 million in the prior-year period. Gross profit rose 47.1% to $2.2 million, and gross margin expanded to 58.6% from 48.3%, as revenue grew on a cost of sales that held at $1.6 million.

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Operating expenses were $8.4 million, compared with $5.7 million. Sales and marketing expenses rose to $3.2 million from $1.3 million, reflecting planned investment in the commercial team and infrastructure to bring ReefIQ™ to market and to onboard and scale enterprise deployments as agreements are signed, including non-recurring costs incurred in the quarter. General and administrative expenses were $3.9 million, compared with $3.3 million, with the increase primarily non-cash stock-based compensation. Research and development expenses were $1.3 million, compared with $1.0 million, reflecting additional engineering capacity to support the commercial development of the platform.

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Operating loss was $6.1 million, compared with $4.2 million, as planned investment in the ReefIQ enterprise rollout and higher non-cash stock-based compensation more than offset a $0.7 million increase in gross profit. Net loss from continuing operations was $6.1 million, or $0.13 per share, compared with $4.1 million, or $0.09 per share. Total net loss was $6.1 million, compared with $3.0 million in the prior-year period, which included $1.1 million of income from discontinued operations.