AVANTE ANNOUNCES RESULTS FOR THE FIRST FISCAL QUARTER HIGHLIGHTING 25% IMPROVEMENT IN RECURRING MONTHLY REVENUE

Executive Summary

• Avante Corp. reported financial results for the first quarter of fiscal 2026 (ended June 30, 2025), highlighting an 11% year-over-year revenue increase and a 25% growth in Recurring Monthly Revenue (RMR).
• The company achieved positive Adjusted EBITDA of $0.36 million and turned a profit with Net Income of $11,000, compared to a net loss in the prior year period.
• Management maintains a positive outlook for fiscal 2026, driven by a 126% surge in NSSG revenue and strong organic growth across its security and technology service divisions.

Key Details

• Revenue Performance: Reported revenue of $8.75 million for Q1 FY2026, an increase of $0.83 million (11%) compared to $7.91 million in Q1 FY2025.
• NSSG Growth: The NSSG segment drove significant growth with a 126% year-over-year revenue increase.
• Recurring Monthly Revenue (RMR): Avante Security segment RMR reached $4.06 million, up 25% from the prior year, driven by net growth in monitoring customers and new recurring service introductions.
• Profitability Metrics:
  • Adjusted EBITDA: $0.36 million from continuing operations (consistent with prior year Q1).
  • Net Income: $11,000 from continuing operations, a turnaround from a net loss of $128,000 in the prior year Q1.
  • Gross Profit: Increased by $0.31 million year-over-year; gross profit margin remained stable at 38%.
• Balance Sheet & Liquidity:
  • Cash and GIC investments: $4.7 million.
  • Available credit facilities: $12 million.
  • Total funded debt: $0 (bank-debt free).
  • Total funded debt and lease obligations: $1.255 million.
• Operational Updates: Implementation of a new ERP system and operational streamlining to reduce operating costs and drive efficiencies.
• Outlook: Management targets record levels for revenue, RMR, and Adjusted EBITDA, leveraging the NSSG footprint for international revenue and ramping up the WALL-E business.

Notable Quotes

• Manny Mounouchos, Founder, CEO & Board Chair: “The first quarter of fiscal 2026 delivered solid growth, with revenue increasing 11% year-over-year and recurring monthly revenue up 25%. This performance was driven by strength across all divisions, most notably NSSG, which delivered an exceptional 126% increase in revenue... We are energized by the growth potential of our next-generation technology platforms.”
• Raj Kapoor, CFO: “I am pleased to announce that we achieved positive operating cash flow, Adjusted EBITDA and net income in the first quarter of fiscal 2026. Our balance sheet remains strong, as we remain bank-debt free... These improvements position us to drive sustainable growth and deliver long-term value to our shareholders.”