What you need to know: • BQE is expected to report Q1 financial results before the end of the month. Based on our conversations with management, we have decided to reshuffle some of our expectations given contract timing. • We have lowered our Q1 prop. revenue from $10.0M to $7.7M, while moving the delta into Q3/Q4, resulting in an unchanged estimate for 2026. • We remind readers that BQE’s financials can be lumpy at times and investors should analyze the Company on annual or LTM numbers. BQE Water (BQE:TSXV, BTQNF:OTCPK) is expected to release Q1/26 financial results before the end of May following a landmark 2025 in which proportional revenue grew 61% YoY to $39.9M (see our note here). Based on our conversations with management, contract timing has been altered, resulting in revenue being shifted from Q1 to future quarters. As such, we are lowering our Q1 projections and shifting the revenue to Q3/Q4, leaving our 2026E proportional revenue estimate unchanged. Our 2026 adjusted EBITDA projection declines slightly, as seen below. We remind readers that BQE’s business can be lumpy at times and that investors should analyze the Company on an annual basis rather than quarterly. Our 2027 projections also remain unchanged. We are maintaining our BUY rating and target price of $108.00/share on BQE. Q1 Financials Preview We are now expecting the following results for Q1: • Proportional revenue of $7.2M (-10% YoY) compared to our original estimate of $10.0M. • This is comprised of $1.9M in operations services, $4.7M in technical services, and $0.6M in BQE’s share of JV revenue. We remind readers that Q1/25 was a record Q1 at $7.9M. • GAAP revenue of $6.5M (originally $9.4M) vs. $7.4M in Q1/25. • Gross Margin of 41% vs. 44% originally. Our full-year gross margin expectations remain unchanged. • Adjusted EBITDA of $0.4M vs. $1.8M previously, reflecting the lower revenue, gross margins, and continued investments in SG&A. • Net income of $0.1M ($0.07/share) and FCFF of $1.1M.