BluGlass Limited reported a 14% revenue increase to A$5.76 million and a 28% reduction in net loss to A$4.1 million for H1 FY26, bolstered by a key US Department of War contract extension and a refreshed board driving growth.
- Revenue up 14% to A$5.76 million
- Net loss narrowed 28% to A$4.1 million
- Secured A$1.05 million contract extension with US Department of War
- New board appointed to accelerate commercial growth
- US$100 million project pipeline advancing with key defence and quantum partners
Financial Performance Highlights
BluGlass Limited has reported a solid half-year financial result for the six months ended 31 December 2025, with revenues climbing 14% to A$5.76 million. This growth was primarily driven by increased foundry income, which rose by nearly half a million dollars, and a modest uptick in product sales. Despite the revenue gains, the company recorded a net loss after tax of A$4.1 million, a 28% improvement compared to the prior corresponding period.
The company’s expenditure profile showed encouraging signs of cost discipline, with total expenses decreasing by 8%. Notably, consumables and depreciation expenses were significantly lower, while employee benefits costs edged up slightly. BluGlass continues to invest heavily in research and development, supported by a substantial A$6 million R&D tax rebate for FY25 activities.
Strategic Contract Wins and Pipeline Development
A major highlight was the securing of a A$1.05 million contract extension with North Carolina State University under the US Department of War’s Microelectronics Commons CLAWS Hub program. This extension brings BluGlass’ total contract value under this initiative to A$6.5 million over three years, underscoring the company’s growing footprint in US defence-related photonics technology.
Further validating its market position, BluGlass received initial orders from Infleqtion Inc, a global quantum computing leader, and a prominent US tier 1 defence prime contractor. These early-stage orders are critical for prototyping and testing, potentially paving the way for larger, long-term engagements. The company’s US$100 million project pipeline includes government and industry partners, reflecting strong demand for its gallium nitride (GaN) visible laser technology in emerging sectors such as quantum sensing, defence, and biotech.
Leadership Refresh and IP Licensing
In a strategic move to accelerate growth, BluGlass appointed a refreshed board led by Executive Chair Omer Granit, who brings extensive experience in US capital markets, defence, and advanced manufacturing. The new board composition aims to deepen US government engagement and strengthen commercial partnerships.
Complementing its commercial efforts, BluGlass licensed critical long-wavelength visible laser intellectual property from the University of California Santa Barbara’s Solid State Lighting and Energy Electronics Consortium. This IP is expected to enhance the company’s capabilities in producing lasers for aquamarine and green wavelengths, which have expanding applications in quantum computing and biomedical devices.
Operational and Market Outlook
BluGlass continues to leverage its vertically integrated manufacturing facilities in Australia and the US, a competitive advantage amid global semiconductor reshoring trends. The company’s engagement with multiple US Department of War Microelectronics Commons hubs and its participation in key industry events signal a proactive approach to market development.
Looking ahead, BluGlass plans to convert its substantial project pipeline into revenue-generating contracts, secure repeat orders, and advance its technology roadmap. The company also aims to broaden its access to non-dilutive funding and deepen strategic partnerships, particularly within the US defence and quantum sectors.
Despite ongoing losses, BluGlass maintains a going concern basis supported by cash reserves, R&D rebates, and the potential for further capital raises. The company’s focus on high-value GaN laser applications positions it well to capture growth in fast-evolving technology markets.
Bottom Line?
BluGlass is poised at a pivotal growth juncture, with strategic US defence contracts and a refreshed leadership team setting the stage for commercial breakthroughs.
Questions in the middle?
- How quickly can BluGlass convert its US$100 million project pipeline into sustained revenue?
- What impact will the new board have on BluGlass’ US government engagement and funding access?
- How will the licensed long-wavelength laser IP accelerate product development and market share?