C3is Inc. (NASDAQ: CISS) reported a sharp turnaround in its second quarter of FY26, posting revenue of $24.0 million, up 124% year-over-year, and net income of $10.0 million. The Athens-based ship-owning company reversed a net loss of $5.3 million in the same period last year, driven by higher charter rates and fleet expansion.

Management hosted a conference call on August 27, 2026, to discuss the results. The company’s fleet capacity grew to 311,431 deadweight tons (dwt) following the delivery of two product tankers, enhancing its exposure to the tanker market.

Financial Highlights

For the three months ended June 30, 2026, C3is generated voyage revenues of $24.0 million, compared to $10.7 million in Q2FY25. The daily Time Charter Equivalent (TCE) rate rose 144.5% to $40,260 from $16,466 in the prior year period.

Adjusted net income reached $9.8 million, a 790.9% increase from $1.1 million in Q2FY25. Adjusted EBITDA stood at $11.8 million, up 321.4% from $2.8 million. For the six months ended June 30, 2026, net income was $13.2 million and adjusted EBITDA was $18.7 million.

Per share metrics also reflected the strong performance. Adjusted earnings per share (EPS) came in at $345.57, a significant improvement from the loss of $(2.86 thousand) per share in the corresponding period last year. This represents a 112.08% increase year-over-year.

Fleet Expansion and Operations

The company’s fleet operational utilization was 78.6% in Q2FY26, slightly up from 78.0% in Q2FY25. The average number of vessels increased to 5.0 from 4.0 in the prior year.

C3is took delivery of two product tankers for an aggregate consideration of $39.8 million, payable by January 2027. One tanker was delivered on April 3, 2026, and the second on August 6, 2026. These acquisitions increase the company’s exposure to the product tanker market, where spot rates were approximately $30,000 per day. The Aframax oil tanker operated in the spot market, achieving rates around $100,000 per day.

All vessels remain unencumbered. Cash and cash equivalents rose 122.8% to $33.2 million at the end of Q2FY26, supported by a public offering of units that raised $6.0 million in July 2026. By the end of July 2026, the cash balance further increased to $48 million, an increase of 222% from year-end 2025. This position is sufficient to cover the upcoming capital expenditure obligation of $39.78 million due in January 2027.

The company has expanded its fleet capacity by 387% since inception through five vessel acquisitions: an Aframax oil tanker in 2023, a bulk carrier in 2024, and two product tankers in 2026. None of the vessels are Chinese-built, mitigating potential risks from US tariffs on Chinese-built ships. The average age of the fleet was 16.8 years as of June 30, 2026.

What the Numbers Show

The surge in profitability is primarily driven by rate recovery rather than volume growth. While total calendar days increased by 24.5% due to fleet expansion, the daily TCE rate more than doubled, indicating strong pricing power in both drybulk and tanker segments. The shift from a $5.3 million loss to a $10.0 million profit underscores the leverage gained from fixed-cost structures as charter rates improved. Additionally, the significant rise in cash reserves highlights disciplined capital management despite recent vessel acquisitions.

C3is Inc. (NASDAQ: CISS) announced that its board of directors has determined to effect a one-for-forty (1-for-40) reverse stock split of the company’s common stock, which has a par value of $0.01 per share. The primary purpose of this corporate action is to increase the market price of the company’s common stock, thereby allowing it to satisfy the minimum bid price requirement for maintaining its listing on the Nasdaq Capital Market.

The reverse stock split is scheduled to take effect at 11:59 pm Eastern Time on August 18, 2026. Following this adjustment, C3is’ common stock will begin trading on a split-adjusted basis on The Nasdaq Capital Market as of the opening of trading on August 19, 2026. The CUSIP number Y18284409 will be assigned to the company’s common stock upon effectiveness to ensure proper identification and tracking in post-split transactions.

Impact on Share Capital and Securities

Upon effectiveness, every forty issued shares of common stock will be combined into one issued share, without any change to the par value per share. This consolidation will reduce the number of outstanding shares of common stock from approximately 57.6 million shares to approximately 1.44 million shares.

The company’s outstanding warrants and Series A Convertible Preferred Stock will be proportionately adjusted to increase the exercise price and reduce the number of shares issuable upon exercise. Specifically, regarding Class B Warrants and Class C Warrants, the exercise price and number of shares issuable upon exercise will be further adjusted during an adjustment period ending on the fifth trading day after the effective time of the reverse split, pursuant to the terms of such warrants.

No fractional shares will be issued in connection with the reverse stock split. Stockholders who would otherwise hold a fraction of a share will receive a cash payment in lieu thereof. This payment will be calculated by multiplying the fraction of a share to which the stockholder is entitled by the closing price of the company’s common stock on Nasdaq on August 18, 2026, as adjusted for the reverse split.

Investor Instructions

Stockholders with shares held in book-entry form or through a bank, broker, or other nominee are not required to take any action. The consequence of the reverse stock split will be reflected in their accounts on or after August 19, 2026. Beneficial holders may contact their respective banks, brokers, or nominees for additional information.

The reverse stock split ratio approved by the board of directors falls within the range of ratios authorized by the company’s stockholders.