Burcon NutraScience (TSE:BU) reported fiscal 2026 third-quarter revenue of $740,000 and said it remained on track with its commercialization plan, pointing to a growing customer pipeline and cost reductions as the company prioritizes production and sales execution.
Revenue doubled sequentially as Burcon reiterated 2026 targets
Interim CFO Alex Varty said Burcon generated $740,000 of revenue in fiscal Q3, which he described as a doubling from Q2. Varty added that cumulative revenue at the end of calendar 2025 totaled CAD 1.4 million, which the company said met its revenue guidance for that period.
Expense reductions highlighted as focus shifts to commercialization
Varty said Burcon reduced spending outside of production and sales as it focused resources on scaling operations. He cited a 44% year-over-year decrease in fiscal Q3 research and development spending and a 22% reduction in general and administrative expenses compared with fiscal Q3 of the prior year.
In response to an analyst question about operating leverage and efficiency, Underwood said the company’s “fundamental costs don’t change all that much as we grow from here forward,” adding that growth through the end of the year would bring higher variable costs but “very little increase in other costs.” He also noted Burcon had improved operational performance after roughly nine months of operating experience, describing progress in running the facility “by hour, by shift, by day, by week.”
Customer project funnel, recurring sales model, and product applications
Underwood emphasized that customer development cycles typically take 9 to 18 months to convert from initial contact to business and said Burcon had “over 200 active customer projects.” He framed these projects as a forward indicator for future revenue, stating that “those projects we build today truly drive sales tomorrow.”
Management repeatedly underscored the recurring nature of ingredient sales. Underwood said that once a food company adopts an ingredient, purchases tend to repeat as the customer manufactures products month over month. In a webcast Q&A, he said it was “reasonable to expect revenue to continue growing quarter over quarter,” adding that the “vast, vast, vast majority” of growth is expected to come from sales of Burcon’s own products rather than contract manufacturing revenue, estimating “95, if not 100%” of growth from that source.
Underwood also described the breadth of applications where Burcon is engaged with customers, including:
- Ready-to-mix powders
- Ready-to-drink beverages with protein positioning
- Nutrition bars
- Plant-based foods where taste improvements are needed
He said Burcon’s customer base includes both entrepreneurial, “cutting-edge” brands and some larger, recognizable brands, and argued that the mix provides diversity across customer types and end products.
Technology platform and product mix: pea protein leads today
Underwood said Burcon’s technology platform is designed to deliver high-purity plant proteins, which he linked to improved performance in food products, particularly taste. He said the platform supports multiple products, naming Solatein (sunflower), Peazazz (pea), FavaPro (fava), and Puratein (canola), and added that the company’s intellectual property provides a protective “moat.”
When asked about current sales mix, Underwood said Burcon is currently selling more pea protein, describing pea as the largest current market and consistent with the company’s strategy to achieve quicker sales. Looking ahead, he said the company expects a greater contribution over “year two, year three” from sunflower protein and fava protein, which he characterized as more differentiated and “new to the world.”
Underwood also said customers are increasingly using blends of proteins to take advantage of different functional strengths. He suggested this trend could benefit Burcon because it has a platform across multiple protein sources, positioning the company as a potential “one-stop shop” for blended protein formulations.
Financing: convertible note offering and expected February close
Varty discussed Burcon’s announced offering of convertible notes of up to CAD 6.9 million, which he said included significant participation from insiders and owners of the company’s manufacturing partner. He said Burcon closed the first tranche on Dec. 31, raising CAD 1.25 million, and expects the final tranche to close in the last week of February following a special shareholder meeting scheduled for Feb. 20, 2026.
Underwood said the financing is intended to “accelerate growth,” including expanding operating days and capacity sooner to stay ahead of anticipated customer demand. In response to a question about future financing needs, Underwood said the company believes that after closing the raise it will have the balance sheet needed to accelerate growth and that it has nothing planned beyond the current offering, while noting the company would evaluate opportunities to grow faster if they arise.
Addressing a shareholder question about the share price, Underwood said management believes markets are rewarding “results” more than “hope” and that the company is focused on converting proven technology into production and sales, arguing that continued execution on revenue growth and profitability targets should improve market recognition over time.
About Burcon NutraScience (TSE:BU)
Burcon is a global technology leader in the development of plant-based proteins. With over 285 issued patents and more than 250 additional patent applications, that have been developed over a span of more than twenty years, Burcon has grown an extensive portfolio of composition, application, and process patents covering novel plant-based proteins derived from pea, canola, soy, hemp, sunflower seed and more. In 2019, Merit Functional Foods Corporation was established in a joint venture by Burcon and three veteran food industry executives.
