AVANTE CORP. ANNOUNCES RESULTS FOR THE SECOND FISCAL QUARTER of 2026, HIGHLIGHTING 10% INCREASE IN REVENUE AND 73% INCREASE IN ADJUSTED EBITDA WITH POSITIVE NET INCOME

Executive Summary

• Avante Corp. reported a 10% YoY revenue increase to C$8.88 M for Q2 FY2026, driven by strong growth in NSSG (+47%) and Avante Black (+48%).
• Adjusted EBITDA rose 73% YoY to C$0.58 M and the company posted a second consecutive quarter of positive net income (C$0.08 M).
• The firm highlighted a solid balance sheet (debt‑free, C$4.2 M cash, C$12 M credit facility) and reaffirmed an optimistic outlook for FY2026 with continued organic growth across its service lines.

Key Details

• Revenue: C$8.88 M in Q2 FY2026 vs. C$8.09 M YoY (+10%).
• NSSG revenue up 47% YoY.
• Avante Black revenue up 48% YoY.
• Secured Transport division grew 142% YoY.
• Recurring Monthly Revenue (RMR): C$4.192 M, +14% YoY.
• Gross Profit: C$3.713 M, +7% YoY; gross margin stable at ~42%.
• Adjusted EBITDA: C$0.584 M, up 73% from C$0.338 M YoY.
• Net Income: C$0.083 M (positive) vs. a loss of C$0.909 M in the prior year quarter.
• Cash & Liquidity: Debt‑free with C$4.2 M cash on hand and C$12 M available under credit facilities.
• Operating Expenses: Declined YoY, reflecting cost‑management initiatives (new ERP system, streamlined operations).
• Six‑Month Highlights (ended Sep 30, 2025):
• Six‑month revenue: C$17.626 M vs. C$16.000 M prior year.
• Adjusted EBITDA six‑month total: C$0.944 M vs. C$0.701 M prior year.
• Management Commentary: CEO Manny Mounouchos emphasized disciplined growth, expansion of recurring revenue base, and the rebranding of WALL‑E to “MAST” (Mobile Automated Surveillance Tower). CFO Raj Kapoor underscored positive cash flow, strong balance sheet, and ongoing efficiency gains.

Notable Quotes

• Manny Mounouchos, Founder & CEO:

  “The second quarter of fiscal 2026 continued to build on the momentum we established earlier this year… As we move into the second half of fiscal 2026, we remain focused on disciplined growth, expanding our recurring revenue base, increasing our profitability, and delivering elite, tech‑enabled security solutions…”

• Raj Kapoor, CFO:

  “I am pleased to report positive operating cash flow, Adjusted EBITDA, and net income once again… Our strong balance sheet remains debt free, with $4.2 M in cash and $12 M in available credit facilities, providing the financial strength to pursue profitable growth while maintaining discipline.”