Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to EcoSynthetix's 2026 First Results Conference Call. [Operator Instructions]

Listeners are reminded that portions of today's discussion may contain forward-looking statements that reflect current views with respect to future events. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements.

For more information on EcoSynthetix's risks and uncertainties related to these forward-looking statements, please refer to the company's annual information form dated February 17, 2026, which is posted on SEDAR. This morning's call is being recorded on Wednesday, May 6, 2026, at 8:30 a.m. Eastern Time.

I would now like to turn the call over to Mr. Jeff MacDonald, Chief Executive Officer of EcoSynthetix. Please go ahead, sir.

Jeff MacDonald
CEO & Director

Thank you. Good morning, and thank you all for joining us today. Yesterday afternoon, we reported our 2026 first quarter results. Sales were $3.8 million in the quarter, a decline of 7% compared to the same period last year.

Adjusted EBITDA was a loss of $340,000, an improvement of 32%. Those are disappointing figures to report, particularly after the momentum we built in the second half of 2025, including 2 record quarters and our first profitable year.

The start to 2026 is a short-term step back. Based on current order patterns and feedback from key accounts, we expect the softness in top line results to extend into the second quarter. With that context, it's worth reiterating where we stand and what's been accomplished and why