What you need to know: • BQE reported Q1 financials yesterday that missed our estimates with prop. revenue of $5.3M (-33% YoY) compared to our estimate of $7.2M. Adjusted EBITDA was ($1.1M) vs. our expected $0.4M. • The decline was due to the absence of the Eagle Mine emergency contract, which largely supported Q1/25 financials. Q1 is usually seasonally weak. • We remain bullish on BQE for the remainder of the year, leaving our estimates largely unchanged. BQE ended Q1 with $17.7M in cash. Yesterday, after market close, BQE Water (BQE:TSXV, BTQNF:OTCPK) reported Q1 financial results that were below our estimates. Given that BQE is subject to lumpiness via contract timing, we do not view the quarter as anything indicative of a slowdown in its business, further evident through its recent contract signings. We continue to expect most of the growth in 2026 to come in H2. We are maintaining our BUY rating and target price of $108.00/share on BQE. Key Highlights • Q1 prop. revenue was $5.3M (-33% YoY) vs. our revised estimate of $7.2M. Q1/25 was driven by BQE’s response to the emergency at the Eagle Mine, making a tough comparable and explaining most of the decline. We remind investors that Q1 is a seasonally weak quarter as many of its projects are in the winter or dry season. • Proportional revenue was comprised of operations services revenue of $2.0M (+1% YoY, 38% of revenue), short-term operations technical services revenue of $0.9M (-73% YoY due to the absence of the Eagle contract), advisory and design technical services revenue of $1.9M (-7% YoY), and BQE’s share of JV revenue of $0.5M (flat YoY). o BQE began breaking out its technical services revenue into the two segments above, providing further clarity for investors. • Gross margin for the quarter was 25% vs. our expectation of 41%. The decreased figure was due to lower productivity from new employees and one-time expenses for taking over the Britannia Mine treatment facility, such as personnel, travel, and rental equipment.