Dye & Durham Reports Preliminary Unaudited Fiscal 2025 and Q1 Fiscal 2026 Results and Provides Updated Business Outlook
Executive Summary
- Dye & Durham released preliminary unaudited FY 2025 results (revenue $440.6 M, net loss $(82.7) M, Adjusted EBITDA $231.3 M) and Q1 FY 2026 results (revenue $109.4 M, net loss $(39.2) M, Adjusted EBITDA $49.7 M).
- The company announced the pending sale of Credas for $146.0 M, expected to close Jan 2026, with $30 M earmarked to reduce revolving credit and the remainder to pay down first‑lien debt.
- Management outlined a $15‑20 M annualized cost‑optimization program and an FY 2026 investment year aimed at stabilizing operations in H2 2026 and returning to growth in FY 2027.
Key Details
- FY 2025 Preliminary Results
- Revenue: ~$440.6 M (‑3.7% YoY)
- Net loss: ~$(82.7) M (improved from $(174.3) M in FY 2024)
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Adjusted EBITDA: ~$231.3 M (‑10% YoY)
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Q1 FY 2026 Preliminary Results
- Revenue: ~$109.4 M (‑9% vs Q1 FY 2025)
- Net loss: ~$(39.2) M (vs $(9.3) M in Q1 FY 2024)
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Adjusted EBITDA: $49.7 M (‑25% YoY)
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Cost‑Optimization Program
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Target annual run‑rate savings of $15‑20 M, with ~60% to be realized in FY 2026 and the balance in FY 2027.
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Credas Sale
- Transaction value: $146.0 M gross proceeds.
- Expected closing: January 2026.
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Use of proceeds: ~$30 M to reduce revolving credit facility; remainder to pay down first‑lien indebtedness, improving leverage and covenant headroom.
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Financial Covenant Status
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Company expects compliance with senior credit agreement covenants for quarters ended June 30 2025 and September 30 2025.
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Leadership & Strategic Initiatives
- CEO George Tsivin (appointed Jun 2025) launched transformation program focused on operational efficiency, product rationalization (reducing >40 SKUs to ~10), and commercial excellence.
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Interim CFO Sandra Bell overseeing disciplined capital allocation and balance‑sheet optimization.
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Regulatory & Governance Updates
- Ongoing Management Cease Trade Order (MCTO) under NP 12‑203; bi‑weekly default status reports filed.
- Application to extend MCTO pending OSC decision; current expiry Nov 29 2025.
- Senior credit agreement waiver obtained until Dec 1 2025 for annual filings; additional waiver being sought for Q1 filings.
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No waiver sought for senior secured notes indenture; interest rate increase trigger if required filings not made by Dec 27 2025.
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AGM Rescheduling
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2025 Annual General Meeting moved to Dec 31 2025 (record date Nov 7 2025) to allow time for audited FY 2025 financials and OSC Review completion.
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Quiet Period
- Company restricting investor engagement until required filings are completed.
Notable Quotes
“I am incredibly proud of what our team has accomplished in just over four months,” said CEO George Tsivin. “We have taken immediate steps to strengthen our operations… and I am confident that our customer‑first strategy … will drive meaningful progress in FY 2026 and beyond.”