BOARDWALKTECH REPORTS FIRST QUARTER FISCAL 2026 FINANCIAL RESULTS

Executive Summary

• Boardwalktech Software Corp. reported its First Quarter Fiscal 2026 financial results for the period ended June 30, 2025, showing a decline in revenue but an improvement in adjusted EBITDA and net loss metrics compared to the previous quarter.
• The company announced the resignation of CFO and Director Charlie Glavin, effective September 5, 2025, while noting that he will continue to advise the company and retain his shares.
• Subsequent to the quarter-end, the company closed a non-brokered private placement for gross proceeds of $0.3 million and announced additional cost-saving measures projected to save $0.7-$0.8 million annually.

Key Details

• Revenue: Q1-FY26 revenue was $0.9 million, a 6% decrease from $1.0 million in Q4-FY25 and a 28% decrease from $1.3 million in Q1-FY25, primarily due to two previously announced customer non-renewals.
• Annual Recurring Revenue (ARR): ARR stood at $3.8 million as of March 31, 2025.
• Gross Margin: Q1-FY26 gross margin was 83.5% (vs. 85.3% in Q4-FY25 and 87.9% in Q1-FY25); the company expects margins to return to approximately 90% in future quarters.
• Operating Expenses: Total adjusted operating expenses (excluding share-based payments and depreciation) were $1.4 million, a decrease from $1.6 million in Q4-FY25 and $1.5 million in Q1-FY25.
• Adjusted EBITDA: Reported a loss of $(0.6) million, a 15% improvement sequentially from $(0.8) million in Q4-FY25, though worse than the $(0.4) million loss in Q1-FY25.
• Net Loss:
  • Non-IFRS net loss: $(0.7) million ($0.01 per share), improved from $(0.9) million in Q4-FY25.
  • IFRS Net loss: $(0.9) million ($0.01 per share), a 17% sequential improvement from $(1.1) million in Q4-FY25.
• Cash Position: Ending cash was $0.1 million with $0.4 million in accounts receivable. Cash burn from operations decreased to $75,000 per month.
• Debt: Outstanding debt was $2.5 million drawn against a $4 million line of credit from Celtic Bank, with approximately $0.4 million available. Debt maturity remains March 2027.
• Subsequent Financing: On July 25, 2025, the company closed a non-brokered placement of 2,793,800 units at CAD 0.13 per unit, generating gross proceeds of $0.3 million.
• Cost Savings: Additional cash and cost-saving actions taken post-Q1-FY26 are projected to save $0.7-$0.8 million over the next year, building on $0.9 million in savings recognized in the prior year.
• Management Change: CFO Charlie Glavin resigned effective September 5, 2025, to pursue a new opportunity but will remain as an advisor and shareholder.

Notable Quotes

• "Boardwalktech continues to diligently execute on its land-and-expand strategy with our Velocity and Digital Ledger solutions, addressing critical enterprise pain points and delivering strong ROI for our customers," said Andrew Duncan, CEO.
• "While sales conversions have taken longer than initially expected due to several reasons including the threat of tariffs and the reduction by the current administration on compliance in our financial services sector, our pipeline remains large with several material license agreements now in late-stage execution."
• "We recently implemented a new initiative this month to reduce cash needs by around $700,000 to $800,000 annually from a combination of personnel and salary cuts, targeted salary savings and deferred compensation."