Velan Inc. reports third-quarter fiscal 2026 results with positive net income

Velan reported third-quarter sales of US$71.7 million and net income from continuing operations of US$3.0 million.

Velan Inc. released its financial results for the third quarter ended November 30, 2025, reporting continued operations figures in U.S. dollars. The company described improved operating results compared with the prior year and provided updates on backlog, bookings and liquidity. The release also announced a proposed sale of the controlling shareholder's stake to a private equity manager and related changes to dividend timing. A conference call for the third-quarter results was scheduled for January 15, 2026. Key figures and developments: - Sales for the third quarter were US$71.7 million, compared with US$73.4 million in the same quarter a year earlier. - Gross profit was US$27.2 million (37.9% of sales) and operating income was US$5.9 million, versus an operating loss of US$62.4 million a year earlier. - Net income from continuing operations was US$3.0 million (US$0.14 per share), versus a net loss of US$47.8 million in the prior-year quarter. - Backlog stood at US$296.8 million and bookings for the quarter were US$77.9 million; about 80.4% of the backlog (US$238.5 million) is expected to be delivered within 12 months. - The company reported total liquidity of approximately US$86.0 million and a net cash position of US$20.2 million as at November 30, 2025. - The article mentions a proposed sale announced January 14, 2026, in which Velan Holding agreed to sell the controlling share block to funds managed by Birch Hill Equity Partners at C$13.10 per share (representing about 72.1% of outstanding shares by the article's account); the transaction is expected to close in the first half of 2026 subject to regulatory approvals, and Velan agreed to suspend ordinary dividend declarations until closing. Summary: The company reported positive net income for the quarter and said backlog and bookings supported near-term delivery expectations. The proposed ownership transaction with Birch Hill is the main subsequent corporate development, with closing subject to regulatory approvals in the first half of 2026 and ordinary dividends suspended until that closing.