Alchemy Labs Reports 17% Revenue Growth and 38.7% Gross Margin in Second Quarter 2026

Kitchener, Ontario--(Newsfile Corp. - August 19, 2026) - Alchemy Labs Inc. (TSXV: ALCH) ("Alchemy" or the "Company"), a Canadian nanotechnology company developing advanced protective solutions for the automotive and defence industries, today reported financial results for the three months ended June 30, 2026. All amounts are reported in Canadian dollars unless otherwise noted.

Business Highlights (Three Months Ended June 30, 2026):

• Improved automotive product availability, supporting a return toward a normal sales rhythm during the quarter.
• Launched the first six ExoShield ULTRA Pro aftermarket kit models.
• Completed Phase One of the NATO DIANA Accelerator Programme and expanded defence business development activities in Europe.
• Continued commercial validation of Crypsis with a leading U.S. defence garment supplier.
• Announced a Non-Recurring Engineering agreement with a Canadian textile-based systems manufacturer and supplier to the Canadian Department of National Defence

Financial Highlights (Three Months Ended June 30, 2026):

• Revenue was $581,027 compared to $496,871 in Q2, 2025 or 16.9% increase, reflecting improved automotive product availability and an initial revenue contribution from the Company's Crypsis defence business.
• ExoShield revenue of $509,195, compared to $496,871, in Q2, 2025 or 2.5% increase.
• Crypsis revenue of $71,382, compared to $Nil, in Q2, 2025.
• Gross profit was $224,803, representing a gross margin of 38.7%, compared to a gross loss of $1,177 and gross margin of (0.2%) in Q2 2025.
• Operating loss was $1,188,682 compared to an operating loss of $761,845 in Q2, 2025, reflecting increased investment in sales and marketing, engineering, business development and infrastructure to support the Company's growth initiatives.
• Net loss was $1,573,556, or ($0.06) per share, compared to a net loss of $1,148,152, or ($0.03) per share in Q2, 2025.
• Cash and cash equivalents were $1,259,817 as at June 30, 2026.*

Subsequent to quarter-end, on July 9, 2026, the Company completed its initial public offering, raising gross proceeds of $13,738,447 through the issuance of 13,738,447 units at $1.00 per unit.

"Q2 represented an important period of operational progress for Alchemy as improved product availability helped our automotive business return to year-over-year growth while our increased focus on higher-margin GT3+ and ULTRA products contributed to a significant improvement in gross margin," said Khanjan Desai, CEO of Alchemy. "At the same time, Crypsis began contributing revenue as we continued advancing the technology toward commercial integration with defence industry partners. Following quarter-end, the completion of our $13.7 million IPO significantly strengthened our capital position and provides us with the resources to accelerate the commercialization of both ExoShield and Crypsis."

Additional discussion of the Company's operating results is provided in the Management's Discussion and Analysis for the period ended June 30, 2026.

The Company's unaudited condensed interim consolidated financial statements and Management's Discussion and Analysis for the period ended June 30, 2026, are available under the Company's profile on SEDAR+ at www.sedarplus.ca and on the Company's website at www.alchemylabs.com.

About Alchemy Labs Inc.

Alchemy Labs Inc. (TSXV: ALCH) is a Canadian nanotechnology company that develops and commercializes advanced protective technologies for the automotive and defence industries. Through its ExoShield® platform, the Company commercializes premium windshield protection films, paint protection films and protective coatings for automotive applications. Through its Crypsis™ platform, the Company is developing thermal signature management technologies for defence and security applications.

This news release includes certain statements that may be deemed "forward-looking statements", including statements respecting the services to be provided by Alchemy and the use of proceeds from the IPO. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "would", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although Alchemy believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Alchemy can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this News Release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including the assumption that the Company will use the net proceeds of the IPO as anticipated, as well as the various risk factors discussed in Alchemy's disclosure documents which can be found under Alchemy's profile on www.sedarplus.ca. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/310527