BioLargo Inc (OTCQX: BLGO) reported second quarter 2026 revenue of $1,248,000, marking a 12% sequential increase from $1,115,000 in the first quarter. While revenue declined 55% year-over-year due to the cessation of the "Pooph" private-label product line in August 2025, non-Pooph revenue grew 26% in the first half of 2026 compared with the prior year period.
Gross profit margin expanded to 54% in Q2 2026, up from 51% in the same quarter last year. This improvement reflects both the loss of lower-margin private-label revenue and better cost performance at ONM Environmental, where cost of goods sold fell by 8 percentage points to 37% of revenue from 45% a year earlier. For the first six months, gross margin stood at 48%, essentially unchanged from the prior year.
The company recorded a net loss of $4,000,000 for the quarter, widening from a $1,882,000 loss in Q2 2025. Clyra Medical Technologies, a 48%-owned subsidiary, accounted for $2,375,000 (59%) of the consolidated net loss. Clyra also represented approximately 48% of combined consolidated selling, general and administrative expenses and research and development expenses for the first half.
| Metric: | Q2 2026 | Q2 2025 | Change |
| Revenue: | $1,248,000 | $2,777,000 | -55% YoY |
| Sequential Revenue Growth: | 12% | — | — |
| Gross Margin: | 54% | 51% | +3 pp |
| Net Loss: | $4,000,000 | $1,882,000 | Widened |
As of June 30, 2026, BioLargo held total assets of $6,669,000, including cash equivalents of $2,188,000. Current liabilities stood at $4,765,000 against current assets of $3,499,000, resulting in a working capital deficit of $1,266,000.
What the Numbers Show
Capital allocation strategy shifted significantly toward subsidiary-level financing. Approximately 86% of the capital raised during the first six months of 2026 was secured at the subsidiary level rather than through the sale of BioLargo common stock. This included $3,395,000 in debt at Clyra Medical and $487,000 in equity at BioLargo Energy Technologies, compared with only $647,000 raised via BioLargo common stock sales. BioLargo guaranteed $3,970,000 of Clyra's promissory notes as of June 30, 2026.
Clyra Medical Technologies recognized $154,000 in revenue in the first half of 2026. The company signed an exclusive distribution agreement with Al-Hikma FZCO in May 2026, covering 18 countries across the Gulf Cooperation Council, the Levant, North Africa and select adjacent markets. ViaCLYR wound irrigation solution received its first U.S. distributor purchase order in February 2026. Bioclynse, a surgical wound irrigation solution, is preparing for launch with a national distribution partner.
BioLargo Consumer Products is set to relaunch CupriDyne-based household products in October under a company-owned model. This follows the revocation of the Pooph license in September 2025. The new structure aims to retain margin previously accrued to third-party brand owners by controlling the value chain from manufacturing through shelf placement.
ONM Environmental, wholly owned, continues to sell CupriDyne Clean and related systems to municipalities and industrial sites. Industrial sales remain unaffected by consumer product changes.
BioLargo Engineering, Science & Technologies (BLEST) generated $1,888,000 in revenue in the first half of 2026. Recurring air quality work at U.S. Air Force bases contributes approximately $100,000 per month. In April 2026, BLEST was engaged under a $1.2 million contract to design a pilot-scale minerals processing facility. Internal engineering work billed within the group totaled $574,000 in the first half, a 46% increase from $393,000 in the prior year period.
BioLargo Equipment Solutions & Technologies continues to operate its Aqueous Electrostatic Concentrator (AEC) at Lake Stockholm, New Jersey, removing PFAS from drinking water. The system has demonstrated more than 10,000 hours of continuous operation with no materially significant degradation. Management regards validation in this municipal project as a key commercialization milestone.
BioLargo Energy Technologies is advancing Cellinity long-duration energy storage technology. Pilot-scale cell production continues at the Oak Ridge headquarters. No formal project financing agreements or factory development contracts have been executed, and the unit has not yet generated revenue.
BioLargo will host a stockholder town hall on September 10, 2026, at 1:00 p.m. Pacific Time to review results and discuss commercialization priorities.