Caldwell Reports Second Quarter Results

• Caldwell Partners International Inc. reported Q2 FY2026 results on April 9, 2026.
• Revenue increased 18% year-over-year to C$27.3 million.
• Net profit turned positive at C$22 thousand (C$0.001 per share) compared to a loss of C$(211) thousand in Q2 FY2025.
• Operating profit improved significantly, turning from a loss of C$(649)k last year to a profit of C$771k this year.
• The Board declared a cash dividend of C$0.01 per common share, payable June 15, 2026.
• Cash and cash equivalents declined to C$10.8 million from C$16.4 million at the start of the period.
• Net cash used in operating activities was negative C$(6.15) million for the quarter.

• The return to net profitability is a positive fundamental shift compared to prior year losses, validating the turnaround strategy initiated in Q4 FY2025 and Q1 FY2026.
• However, the operating cash flow burn of C$6.15 million against a cash balance of C$10.8 million presents an immediate liquidity risk that offsets the earnings gain for a risk-averse investor.
• The dividend declaration is positive for shareholder returns but consumes cash during a period of negative operating cash flow.
• Revenue growth remains solid at 18% YoY, indicating demand for services persists despite macroeconomic headwinds mentioned by management.
• The market reaction (price decline from C$1.07 in Jan to C$0.78 in April) suggests investors are pricing in the cash burn risk rather than celebrating the profit turnaround.

• Caldwell Partners International Inc. operates as a global executive search firm with two main brands: Caldwell and IQTalent.
• The company focuses on leadership advisory services across sectors including Technology, Life Sciences, Industrial, Consumer, and Sports & Entertainment.
• Strategic expansion has included hiring partners in Dubai, London, Atlanta, and New York to capture growth in the Middle East and North America.
• Flagship initiatives include the launch of a Sports & Entertainment Practice (Nov 2025) and thought leadership whitepapers on utilities and energy sectors.