Zoomd Technologies Reports First Quarter 2026 Financial Results
Conference call will be held on May 28 , 2026 at 9 a.m. ET
Unless otherwise stated herein, all amounts are presented in
Key Highlights
- Q1.26 revenues were
$6.9M , with a net loss of$0.5M and positive cash flow from operations of$0.6M . Ended the period with$22.5M in cash and no bank debt. - As outlined previously, two major customers implemented changes to their operating models. While visibility with one customer remains limited, activity levels with the second customer have recently begun to increase.
- As previously announced, the Company has launched a Normal Course Issuer Bid (NCIB) program, with purchases set to commence following the release of its Q1.26 financial results.
Management Commentary
"This quarter reflects an ongoing transition period for the Company, during which we maintained positive cash flow from operations and ended the quarter with
As stated in our previous reports, we are managing reduced activity from two major customers following changes to their operating models. While visibility with one customer remains limited, we have recently begun to see an increase in activity levels with the second customer.
During the quarter, we implemented decisive cost optimization measures, including workforce reduction initiatives and additional expense efficiencies, designed to better align our cost structure with current activity levels, while preserving our focus on growth initiatives, business development, and technology capabilities.
At the same time, our diversification strategy continues to deliver measurable results. Customers onboarded during 2025 contributed approximately 30% of revenues during the quarter, while customer concentration continued to decline.
The cash position we built in 2025 is a strategic asset, giving us the flexibility to pursue both continued organic growth and selective inorganic opportunities that align with our long-term direction."
"
As previously announced, following the release of our first quarter 2026 financial results, the Company has launched a Normal Course Issuer Bid (NCIB) program as part of our ongoing capital allocation strategy. We believe the current trading price of the Company's shares may not fully reflect the underlying value of the business, its financial position, long-term prospects, and the strategic initiatives currently underway. Given the strength of our balance sheet and liquidity position, we believe the NCIB represents an attractive and disciplined use of capital.
We remain confident in the Company's long-term direction, the resilience of our business model, and our ability to adapt to changing market conditions while continuing to build long-term value for our shareholders."
Fir st Quarter 2026 Financial Highlights
- Revenues in Q1.26 were
$6.9M , a 62% decrease from$18.2M in Q1.25, reflecting the continued impact of operating model changes implemented by two major customers, with recent improvement in activity levels from one customer. - Gross margin in Q1.26 was 34% compared to 44% in Q1.25, driven primarily by changes in customer mix and remaining within the range historically observed in the Company's business.
- Total operating expenses for Q1.26 were
$3M , a 6% decline compared to Q1.25. During the quarter, the Company implemented cost optimization measures designed to better align its cost structure with current activity levels. These actions included a workforce reduction across multiple departments of approximately 20%, as well as additional expense reduction in operating expenses. As many of these actions were implemented during the quarter, most of the expected savings are anticipated to be reflected beginning in Q2.2026. These actions were primarily focused on efficiency improvements and are not expected to impact the Company's continued investments in growth initiatives, business development, and technology capabilities. - Adjusted EBITDA in Q1.26 was negative
$0.3M compared to positive$5.2M in Q1.25. - Net loss for Q1.26 was
$0.5M compared to net income of$4.8M in Q1.25, reflecting lower revenues. - Cash flow from operations was
$0.6M in Q1.26 compared to$3.6M in Q1.25. - As of
March 31, 2026 , the Company had a cash balance of$22.5M .
CONFERENCE CALL
Toll Free: 1-844-836-8745 (
Webcast: https://app.webinar.net/azAdrgLY68l
Replay: Toll Free: 1-855-669-9658 (
Replay access code: 2496035
Webcast: https://app.webinar.net/azAdrgLY68l
ABOUT
Neither
CAUTION REGARDING NON-IFRS FINANCIAL MEASURES
This press release refers to "Adjusted EBITDA" which is a non-IFRS financial measure that does not have a standardized meaning prescribed by IFRS. The Company's presentation of this preliminary financial measure may not be comparable to similarly titled measures used by other companies. This preliminary financial measure is intended to provide additional information to investors concerning the Company's estimated results. Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, as adjusted for share-based payments, and is a measure of a Company's operating performance. Essentially, it's a way to evaluate a Company's performance without having to factor in financing decisions, accounting decisions or tax environments.
Management uses this non-IFRS measure as a key metric in the evaluation of the Company's performance and the consolidated financial results. The Company believes Adjusted EBITDA is useful to investors in their assessment of the operating performance and the valuation of the Company. However, non-IFRS financial measures are not prepared in accordance with IFRS, and the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with IFRS. A reconciliation of Adjusted EBITDA and operating profit is available in
DISCLAIMER IN REGARD TO FORWARD-LOOKING STATEMENTS
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to
Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise, except as required by law.
The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement.
FOR FURTHER INFORMATION PLEASE CONTACT:
Chairman
Investor relations
New York | Phoenix
ZOMD@lythampartners.com
Logo: https://mma.prnewswire.com/media/2645176/Zoomd_Logo.jpg
View original content:https://www.prnewswire.com/news-releases/zoomd-technologies-reports-first-quarter-2026-financial-results-302784302.html
SOURCE
