MindWalk's Q1 2026: Contradictions Emerge on European Divestiture, GLP-1 Monetization, and AI-Wet Lab Integration

The above is the analysis of the conflicting points in this earnings call

Date of Call: September 15, 2025

Financials Results

• Revenue: $7.6M, up 45% YOY
• Gross Margin: 53%, compared to 45% in the prior year

Business Commentary:

* Revenue Growth and AI Integration: - MindWalk Holdings Corp. reported record revenue of $7.6 million for Q1 2026, up 45% year-over-year. - This growth was driven by the integration of AI and bio-native technology into their platform, enhancing biologics discovery.

• Operational Efficiency and Expense Control:
• The company's operating loss narrowed to $2.7 million and adjusted EBITDA loss was cut in half to $1.4 million year-over-year.

• This improvement was due to operational discipline and a focus on cost control, particularly in general and administrative expenses.

• Rebranding and Strategic Focus:

• MindWalk completed the soft launch of its rebranding, unifying its legacy companies under one identity.

• This rebranding reflects the company's evolution into a bio-native AI platform company, focusing on advanced laboratory research and strategic high-margin initiatives.

• Dengue Vaccine Development:

• MindWalk has progressed its dengue vaccine initiative into preclinical manufacturing and trials.

• The company is pursuing a unique approach to vaccine development, focusing on specific immune system responses to enhance its potential.

• Financial Strength and Future Growth:

• The divestiture of Netherlands operations generated $16.1 million in net proceeds, strengthening the company's balance sheet.
• This strengthened capital position enhances the flexibility to advance growth opportunities such as Software-as-a-Service and translational programs.

Sentiment Analysis:

• Management reported record revenue up 45% YOY, gross margin expansion to 53% vs 45% last year, and adjusted EBITDA loss halved to $1.4M. Continued operations revenue rose 28% YOY, and the company strengthened its balance sheet with $16.1M in proceeds from a divestiture. They emphasized a shift to a scalable bio-native AI platform with growing high-margin SaaS/Data opportunities.

Q&A:

• Question from Swayampakula Ramakanth (H.C. Wainwright & Co.): What portion of the ~$4.3M from discontinued operations relates to products/services you’ll retain, including AI assets?
  Response: Nearly all services/products continue; discontinued revenue was largely off-the-shelf products, while all AI/software assets and related services remain with the company.

• Question from Swayampakula Ramakanth (H.C. Wainwright & Co.): How much of the gross margin comes from continued operations, and how should margins trend?
  Response: Expect margin expansion as BioStrand’s >90% gross-margin business grows mix; Canada also strong, with initial SaaS discounts easing as larger deals onboard.

• Question from Swayampakula Ramakanth (H.C. Wainwright & Co.): What’s the strategy for dengue vaccine beyond current preclinical work?
  Response: Advance to Phase I via partner/NIH sponsorship; current preclinical focuses on neutralization, safety/tolerability, and T‑cell responses; company won’t self-fund Phase I.

• Question from Swayampakula Ramakanth (H.C. Wainwright & Co.): Post-rebranding, will you build an internal pipeline or focus on partnerships?
  Response: Both—fully integrating in silico into all client programs, pursuing tech/pharma partnerships around HYFT/LensAI, and selectively advancing internal assets (e.g., vaccines).