MindWalk Q1 2027 Earnings Report

MindWalk EPS Results

• Actual EPS: -$0.09
• Consensus EPS: -$0.05
• Beat/Miss: Missed by -$0.04
• One Year Ago EPS: N/A

MindWalk Revenue Results

• Actual Revenue: $2.73 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

MindWalk Announcement Details

• Quarter: Q1 2027
• Date: 9/14/2026
• Time: After Market Closes
• Conference Call Date: Monday, September 14, 2026
• Conference Call Time: 5:00PM ET

ImmunoPrecise Antibodies Ltd., together with its subsidiaries, engages in antibody production and related services in the United States, Canada, Europe, and internationally. The company offers a range of antibodies, enzymes, enzyme activity assays, arthritis animal products, proteins, deiminated proteins, organoid growth factors, and hybridoma products for research purposes. Its services include custom antigen modeling, design, and manufacturing; B cell sorting, screening, and sequencing; custom, immune, and naive phage display production and screening; transgenic animals and multi-species antibody discovery; bi-specific, tri-specific, VHH, and VNAR (shark) antibody manufacturing; DNA cloning, protein and antibody downstream processing; antibody characterization on label-free biosensors and antibody engineering; transient and stable cell line generation; antibody optimization and humanization; hybridoma production with multiplexed, high-throughput screening, and clone-picking; and cryopreservation. The company has research collaboration agreements with Pierre Fabre S.A for antibody discovery; and Elektrofi, Inc. to explore a high-concentration formulation of COVID-19 antibody cocktail, PolyTope TATX-03. ImmunoPrecise Antibodies Ltd. was incorporated in 1983 and is based in Victoria, Canada.

MindWalk Q1 2027 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: First-quarter revenue rose 21% year over year to CAD 3.8 million, marking five consecutive quarters of annual growth, while gross margin expanded to 59% from 48%.
• Neutral Sentiment: MindWalk is negotiating ReefIQ enterprise deployments with multiple large pharmaceutical companies, but no contracts or values have been announced; management said enterprise adoption will likely produce lumpy, milestone-based revenue before transitioning to recurring revenue.
• Positive Sentiment: Approximately 80% of the company’s current commercial funnel by value is structured as platform partnerships that may include milestone and royalty economics, rather than fee-for-service work, potentially increasing long-term asset-related upside.
• Negative Sentiment: The net loss from continuing operations widened to CAD 6.1 million from CAD 4.1 million, driven partly by higher commercial investment; sales and marketing expense increased to CAD 3.2 million from CAD 1.3 million, while cash declined to CAD 7.6 million from CAD 11.3 million at quarter-end.
• Positive Sentiment: MindWalk secured a commitment for a US$30 million unsecured revolving credit facility at a fixed 7% rate, providing additional liquidity without immediate equity dilution, although the company expects to draw funds only as needed.

Presentation

[Operator]

Hello, everyone. Thank you for joining us, and welcome to MindWalk Reports' financial results and recent business highlights for first quarter fiscal year 2027. After today's prepared remarks, we will host a question and answer session. I will now hand the conference over to Dr. Jennifer Bath, President and Chief Executive Officer of MindWalk Holdings. Dr. Bath, please go ahead. Before we begin, I would like to remind listeners that today's discussion contains forward-looking statements. These statements reflect management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated, including the company's history of net losses and the ability to convert platform adoptions into contracted recurring arrangements, market acceptance of ReefIQ and LensAI, intellectual property risks, competition and capital market conditions.

[Operator]

A fuller description of these risks appears in the company's annual report on Form 20-F, and other filings are available on SEDAR+ and EDGAR. All financial figures discussed during this call are CAD. Financial statements and MD&A are available on the company's website at mindwalkai.com, as well as sec.gov and SEDAR+. A replay of this call will be available following its conclusion today. I will now turn the call over to Dr. Jennifer Bath, President and Chief Executive Officer of MindWalk Holdings. Please go ahead, Dr. Bath.

[Jennifer Bath, President and CEO at MindWalk]

Thank you very much. Good afternoon. In this first quarter of fiscal year 2027, MindWalk advanced toward our goal of becoming the leading bio-native AI drug discovery and development company. In June, we launched ReefIQ, our proprietary data platform, and our focus is now on enterprise adoption. For those newer to the MindWalk story, ReefIQ is the substrate layer between complex, unstructured biological data and AI models. It turns that data into structured, biologically meaningful representations, so AI models deliver deeper, more actionable insights for our pharmaceutical partners. ReefIQ's commercial model is built around multi-year recurring revenue relationships that can scale as clients expand their use of the platform. Because ReefIQ is integrated directly into a client's biological data and the discovery workflows, these relationships are designed to deepen over time.

[Jennifer Bath, President and CEO at MindWalk]

As a trusted partner to many of the world's largest pharmaceutical companies, we know how drug discovery works inside these organizations and what they need from a platform like ReefIQ. Those relationships give us a real advantage as we drive adoption. We have made good progress. We are engaged with multiple large pharmaceutical companies around potential enterprise deployments of ReefIQ. These discussions vary in maturity, and we are encouraged by how the platform is resonating with our clients. We are not yet in a position to announce specific partners or discuss contract values, but the level of engagement reinforces our conviction of the commercial opportunity. We look forward to providing additional updates as these discussions progress. These opportunities are substantially larger than our historical LensAI recurring revenue agreements.

[Jennifer Bath, President and CEO at MindWalk]

Investors should not use prior LensAI contracts as a benchmark for the size or the scope of ReefIQ enterprise relationships. We have built a leading wet lab discovery franchise. Our clients include 19 of the top 20 global pharmaceutical companies, and every one of those relationships is a potential opening for ReefIQ. Two decades of biologics discovery work for our clients across multiple platforms and capabilities has already contributed to several dozen molecules reaching the clinic. 10 are in active phase I through phase III trials today, and four of those are first-in-class molecules. We are also reshaping how we structure our commercial relationships with our pharmaceutical partners. Increasingly, new engagements are being structured as broader platform partnerships where MindWalk participates in the economics of the assets we help create, rather than simply being paid for discrete projects.

[Jennifer Bath, President and CEO at MindWalk]

This structure aligns our incentives with our partners, has been well received by our clients, and is contributing to increased activity across our commercial funnel. Today, roughly 80% of our current funnel by value is now structured this way, spanning data management, ReefIQ, and multi-target discovery. We also reached a clear infrastructure milestone. With our engineering partner, AMD and Vultr, we validated a production deployment of OpenFold3 on AMD Instinct MI325X GPUs, and the first of those results are being published this week. OpenFold3 is open source, and any drug discovery team can use it, which is exactly the point. Models commoditize. The layer they run on compounds.

[Jennifer Bath, President and CEO at MindWalk]

Every model run on ReefIQ enriches the biological context for every other program. LensAI, our reasoning layer, is deliberately model neutral, so a client can bring their own model, any open source one, or any third party, and still reason over that same context layer. The compute win simply gives us more room to run discovery and scale ReefIQ. This is a marquee week for that partnership, with much more to come. Our internal pipeline continues to advance through preclinical development, and we remain excited about the opportunity to drive value in this part of our business. Timelines there are hard to forecast, so we advance multiple programs in parallel and prioritize resources based on the strength of the data. This quarter, we added experienced leaders to accelerate our IND-enabling work and move our best programs toward IND filings in the clinic.

[Jennifer Bath, President and CEO at MindWalk]

We will update the market as they hit scientific, regulatory, and development milestones. Finally, our capital position. This morning, we announced a binding commitment for a $30 million US in unsecured revolving credit facility at a fixed 7% rate, drawn as needed. It gives us financial flexibility without issuing equity, which matters given where our stock trades. Set against how AI-enabled discovery platforms are valued in public and private markets, we do not believe our market capitalization reflects what we have built or the scale of what we are pursuing. That informs how we think about financing the business and makes this facility particularly attractive to us. This is not a response to a step change in our cash needs. Our model is not capital intensive.

[Jennifer Bath, President and CEO at MindWalk]

The facility gives us the flexibility to invest behind ReefIQ, advance our internal pipeline, and pursue opportunities as they develop on terms that we believe are very favorable to MindWalk and its shareholders. Our focus is on execution, and we believe sustained delivery will be reflected in the stock over time. Turning to the quarter, revenue grew 21% year-over-year, and gross margin expanded to 59% from 48%. The larger loss this quarter reflects deliberate investment behind the commercial opportunity we see ahead of us. Sales and marketing expense increased by CAD 1.9 million. We are investing to build a larger and more durable revenue base, not simply support the business we have today. On the bottom line, this quarter is not directly comparable to the same quarter last year, which included income from discontinued operations.

[Jennifer Bath, President and CEO at MindWalk]

With that, I will turn it over to Scott to take you through the numbers.

[Scott Areglado, CFO at MindWalk]

Thank you, Jennifer, and good afternoon, everyone. I will take you through our first quarter fiscal year 2027 financial results. As a reminder, all figures are in Canadian dollars. Revenue for the first quarter of fiscal year 2027 was CAD 3.8 million, versus CAD 3.2 million in the first quarter of fiscal year 2026. This is an improvement of approximately CAD 673,000 or 21%. That represents five quarters of consecutive year-over-year revenue growth. Gross margin was CAD 2.2 million or 59% for the first quarter of fiscal year 2027, as compared to CAD 1.5 million or 48% for the same quarter last year. Looking at operating expenses. For the quarter ended July 31st, 2026, R&D was CAD 1.3 million, compared to CAD 1 million in the same period last year. This increase is due primarily to increased salary costs to support the commercial development of our platform.

[Scott Areglado, CFO at MindWalk]

Sales and marketing expenses were CAD 3.2 million for the first quarter of 2027, as compared to CAD 1.3 million in the first quarter of 2026, which included non-recurring costs incurred in the quarter. As I mentioned in our prior call, these are planned investments in our commercial infrastructure and represent increased headcount to support our commercial initiatives, as well as investments in advertising and promotion. G&A increased to CAD 3.9 million for the quarter ended July 31st, 2026, as compared to CAD 3.3 million for the same quarter last year. The increase is due primarily to non-cash stock-based compensation. Net loss and loss from continuing operations was CAD 6.1 million for the first quarter of fiscal year 2027, as compared to net loss from continuing operations of CAD 4.1 million in the first quarter of 2026. Overall net loss in the prior year was CAD 3 million, which included CAD 1.1 million of income from discontinued operations.

[Scott Areglado, CFO at MindWalk]

Turning to the balance sheet. The company ended the quarter with cash balance of CAD 7.6 million as of July 31st, 2026. Net cash used in operating activities was CAD 4 million, compared to CAD 4.2 million in the prior year quarter, due in part to non-cash expenses related to share-based payments. Cash was CAD 11.3 million at April 30th. I am also pleased with our announcement earlier today of a binding commitment for a $30 million U.S. senior unsecured revolving credit facility. This facility demonstrates confidence in our long-term strategy around our emerging pipeline and anticipated adoption of ReefIQ and provides the capital necessary to execute on that strategy. With that, I will turn the call back to Jennifer. Jennifer?

[Jennifer Bath, President and CEO at MindWalk]

Thank you, Scott. As we've mentioned, this morning we announced the binding commitment for $30 million U.S. of unsecured capital without issuing a single share, and this gives us the runway to execute. The strategy is showing up in the business with revenue up 21% and growth margin at 59%. ReefIQ is a recurring revenue business, and it compounds as clients adopt and expand. We are in active negotiations with multiple large pharma companies on ReefIQ enterprise deployments, and you will hear from us as those conclude. As mentioned, do not measure them against our historical LensAI agreements. These are a different scale. On the discovery side, we are moving from discrete projects to platform partnerships where we share in the economics of the assets we help create. Both of these are happening with clients we already have, a distribution advantage that no new entrant can buy.

[Jennifer Bath, President and CEO at MindWalk]

On top of that, our internal pipeline adds upside with catalysts ahead. The higher loss this quarter is an investment behind a larger opportunity. The market is moving toward exactly what we built, and our job now is to lead it. Operator, we are ready for questions.

[Operator]

Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad now to raise your hand. To withdraw your question at any time, press star 1 again. Please pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Now please stand by while we compile the Q&A roster. Our first question comes from the line of Charles Wallace with H.C. Wainwright. Your line is open. Please go ahead.

[Charles Wallace, Analyst at H.C. Wainwright]

Hi. Thanks for taking my question. This is Charles. I am for RK. For my first question, could you maybe help us understand what portion of the CAD 328 million in the first quarter revenue was contracted reoccurring platform revenue? Let us start there. Thank you.

[Jennifer Bath, President and CEO at MindWalk]

Scott, if you have those numbers before you, I do not know if we do have those broken out. I can say that if by platform recurring revenue, we are referring to ReefIQ is not a data management program or platform that is currently in place. These are the ones that we have just discussed negotiating. That is like a whole new level of engagement from clients that you will definitely hear about as we proceed through that. This was the platform that we just released in June, quite recently. If it is recurring revenue or annual recurring revenue off of the SaaS model subscriptions, we do have that, and we have announced that historically. I am not sure that we have that broken out since we do not break these out by cost centers, but I can have Scott confirm.

[Charles Wallace, Analyst at H.C. Wainwright]

Okay. For my next question, for the active negotiations that you mentioned with the multiple large pharma partners for the ReefIQ, which, as you mentioned, just launched in June, what are the current gating factors in these negotiations, and when do you expect to see these convert in fiscal year 2027?

[Jennifer Bath, President and CEO at MindWalk]

Fair question. The gating factors between each group actually differ significantly. I am sorry, we are getting a lot of feedback on our side. In terms of negotiations with clients on our side for gating factors, what we are seeking are primarily people who are already engaged with MindWalk, who are running different programs already with MindWalk and primarily starting off with people who are also engaged through the SaaS model subscription. We do look at, for large pharmaceutical companies, when they are moving into a vendor, bringing a vendor into their core infrastructure, none of them are really about whether or not the platform works. They kind of fall in three buckets for us. The first big one is really about IT security and data governance review, which is something you probably heard us talk a lot about over the last six months.

[Jennifer Bath, President and CEO at MindWalk]

ReefIQ is different in the sense that it sits inside of a client's biological data and its discovery workflows. It goes through the same enterprise security, data residency, and governance processes as really any system of record. The second one is legal and procurement. These are multi-year platform relationships. Instead of project statements of works that we've done historically with our large pharmaceutical clients, and also when we're sharing in the economics of different assets during co-development and partnership relationships. The contract itself is a very new shape. It's very different than the historical contracts we've had, so it's different for their procurement terms as well.

[Jennifer Bath, President and CEO at MindWalk]

I would say, Charles, probably the third component of that is the scoping and just agreeing which programs and which data domains that the first deployment are going to cover so that it lands cleanly and then it's expanding from there. I would say those are kind of the three core areas as companies are by and large taking a relatively new and fairly big step in bringing us fully into the data landscape of what exists throughout their company, oftentimes in a multinational setting. As far as when we plan to close our first agreement or when we plan to see these start closing, I'm going to leave that question alone for now. I don't want to create that specific of an expectation.

[Jennifer Bath, President and CEO at MindWalk]

What I am comfortable saying at this point on the call is that we have these negotiations occurring at various different stages. That includes groups that have worked with us for many years. That also includes one group that's been with us as many years and also has a SaaS model subscription and has been in negotiations in this particular component across multinational jurisdictions for their company for quite some time. So we have a very good line of sight on where and how this is going and when we anticipate it closing. But of course, not everything's under our control, so I'll hold off on giving an exact, more specific timeline.

[Charles Wallace, Analyst at H.C. Wainwright]

No, yeah. That's very helpful. Maybe one final question, maybe on the $30 million USD revolving credit facility. When do you expect the initial draw from this facility, and kind of over what timeframe? How will it be allocated between the ReefIQ commercial rollout and the biologics programs? Thank you.

[Scott Areglado, CFO at MindWalk]

Yeah. We have 60 days to get the credit agreement drawn up, so we will not be able to do anything until the credit agreement is complete. As far as the investments, we will draw capital as we need it and as we need liquidity, but we still have cash runway in our bank account as well.

[Charles Wallace, Analyst at H.C. Wainwright]

Great. Maybe one follow-up from that question. Does this credit facility replace kind of the ring-fenced program-level financing structure that you have in the Cayman asset, Cayman style financing?

[Scott Areglado, CFO at MindWalk]

It does not.

[Jennifer Bath, President and CEO at MindWalk]

Sure, we hear you. Correct. Exactly. It absolutely does not replace that. So we still have interested parties in investing in ring-fenced assets within the Cayman structure and are probably 90%-95% of the way in terms of completing the legal and tax planning efforts that go around setting up those structures.

[Charles Wallace, Analyst at H.C. Wainwright]

Thank you for taking all my questions.

[Jennifer Bath, President and CEO at MindWalk]

Thank you, Charles.

[Operator]

Your next question comes from the line of Danya Ben-Hail with JonesTrading. Your line is unmuting. You are unmuted. Please go ahead.

[Danya Ben-Hail, Analyst at Jones]

Hi.

[Scott Areglado, CFO at MindWalk]

Hi.

[Danya Ben-Hail, Analyst at Jones]

Thank you for taking my question. How should investors think about their revenue growth over the next 12 months and next two years?

[Scott Areglado, CFO at MindWalk]

Yeah, these initial ReefIQ agreements are probably going to be relatively lumpy. It is just the nature of the structure. They are going to be milestone-based. There is engineering efforts at the outset, and then they become annual recurring revenue. I do think revenue is going to be a little lumpy. It is hard to forecast. It really just depends on how quickly we get adoption of ReefIQ.

[Danya Ben-Hail, Analyst at Jones]

Okay. And so we expect it to be around these numbers over the next few quarters until things settle down and you get more subscriptions annually and things like that?

[Scott Areglado, CFO at MindWalk]

Yeah, once we are in a position to announce an agreement, I think we will take a deeper dive into what the revenue model looks like, and sort of when we expect recurring revenue to occur based on the timing of the contract.

[Danya Ben-Hail, Analyst at Jones]

Yeah. Okay. Thank you. Just another question about the discussions with the pharmaceutical and biotech companies. What are they focused on? Are they getting more engaged with the ReefIQ? Is it more the subscriptions right now for the Deep AI? What parts of it are more?

[Jennifer Bath, President and CEO at MindWalk]

Yeah, that's actually a great question, Danya. No, I really appreciate that. One of the things we've talked about in the past is we definitely went about this from a different direction from others. You will see that there are companies that have a technology and some discovery capabilities that prepare those offerings for others as a partnership model, and really a little bit more on the premise of it's extremely low risk, so we'll backload it, but without really having the proof point or the evidence to support the quality of the work. That low risk was given in exchange for not having that type of a relationship with those clients. We've really done the exact opposite.

[Jennifer Bath, President and CEO at MindWalk]

We've spent the last five years demonstrating our ability to send really good molecules to the clinic that are quite successful in the clinic, and then also demonstrated our ability to do that with an understanding of the function of a molecule and its mechanism of action, providing a greater probability of success in later stages of a clinic. That's been a really different approach that we've made. As we enter into these conversations, we've mentioned before, we're working with hundreds of different clients in building these therapeutic drugs. One of the biggest changes we've had in the last two quarters is that every one of those programs coming in is an integrated lab in the loop with our in silico work intertwined very directly with our wet lab work, providing clients with data sooner, larger amounts of data for more data-driven decision-making.

[Jennifer Bath, President and CEO at MindWalk]

There's two components of that that really tie in. Actually, technically three, Danya, that I think specifically address your question. One of them is that all of that data is turned back within LensAI. So clients are directly exposed to the SaaS model subscription. They have the opportunity to use base layer applications within our LensAI, and that has brought more clients to the table with those inquiries around SaaS model subscriptions. So it expands their ability to work with the data within the platform in which it's being received. The conversations around the partnerships, which are back-loaded, but always include some sort of upfront payment. The structure of those being ones that are milestone and royalty-based. That is now a conversation happening with every single client.

[Jennifer Bath, President and CEO at MindWalk]

That fee-for-service option that we have provided in the past, where we use that opportunity to build a relationship with these clients to be one of their preferred vendors, which is no easy task, and to demonstrate the competencies that we have, I would say superiority that we have in our AI and wet lab drug discovery, is what we're building on in those discussions. So every single one of those discussions is now a partnership discussion. There's no longer the opportunity to just walk in the door and put down money for fee for service. So it is a longer negotiation period for us.

[Jennifer Bath, President and CEO at MindWalk]

Even given the fact that we're still up in revenue with these double digits over last year, where we were up significantly in revenue as well while back-loading approximately 80% of the discussions now in the pipeline as partnership discussions to us is bringing us additional confidence. These clients are not walking away from that discussion. They're not turning away from it because we've become the trusted provider that we've shown we can execute. That's enabled this discussion with, going back to your question, actually every single one of our clients. Then the third component of that is ReefIQ, and I would say the majority of the earlier adoption interest and communications we're having from that is from the larger pharmaceutical companies, which I guess makes sense.

[Jennifer Bath, President and CEO at MindWalk]

These are companies that are oftentimes juggling multiple jurisdictions, a lot more siloed data, and are also oftentimes being asked from the top down to find a solution to help their data make sense and to connect their data. We're really seeing it across the board in all three areas. I would say the majority of those conversations, if we had to pick the one that was leading the way, would be partnership discussions, because again, that's not an option to not have that discussion with us any longer. Then the second most would be ReefIQ, where people are looking for an advantage to find meaning in their data, an advantage to get away from hallucination and make their AI models better than their competition.

[Jennifer Bath, President and CEO at MindWalk]

We're able to bring that to the table with something we've been building for 20 years and something that no one else is able to offer.

[Danya Ben-Hail, Analyst at Jones]

Okay. Thank you very much.

[Jennifer Bath, President and CEO at MindWalk]

Thank you.

[Operator]

There are no further questions at this time, and this will conclude today's call. Thank you for attending. You may now disconnect.

Participants

Executives

• Jennifer Bath, President and CEO
• Scott Areglado, CFO

Analysts

• Charles Wallace, Analyst at H.C. Wainwright
• Danya Ben-Hail, Analyst at Jones