Zedcor Inc. Reports Quarterly Results, Including $13.5 Million in Revenue and $4.9 Million in Adjusted EBITDA for the Second Quarter 2025

Executive Summary

• Zedcor Inc. reported record quarterly financial results for Q2 2025, with revenue reaching $13.5 million (up 84% year-over-year) and Adjusted EBITDA hitting $4.9 million (up 83% year-over-year).
• The company successfully expanded its U.S. footprint, with U.S. revenue accounting for 32% of total Q2 revenue, while maintaining strong demand and high utilization rates in Canada.
• Operational highlights include the deployment of 316 new MobileyeZ™ security towers in Q2, bringing the total fleet to 1,882 units, with fleet-wide utilization exceeding 90%.

Key Details

• Q2 2025 Financial Performance:
  • Revenue: $13,536,000 (vs. $7,372,000 in Q2 2024; +84% YoY).
  • Adjusted EBITDA: $4,933,000 (vs. $2,695,000 in Q2 2024; +83% YoY).
  • Adjusted EBITDA Margin: 36%.
  • Net Income: $460,000 (vs. $1,409,000 in Q2 2024; decrease primarily due to $1,373,000 in other income from asset sales in 2024).
  • Six Months Ended June 30, 2025 Revenue: $25,012,000.
  • Six Months Ended June 30, 2025 Adjusted EBITDA: $9,042,000.
• Operational Metrics:
  • Deployed 316 MobileyeZ™ security towers in Q2 2025 and 547 over the six-month period.
  • Total fleet size at end of Q2 2025: 1,882 MobileyeZ™ security towers.
  • Fleet utilization rate: >90% for the quarter.
  • U.S. revenue contribution: 32% of total Q2 revenue; U.S. fleet utilization near 100%.
  • ZBox deployments in Canada eclipsed 115 units.
• Financing and Capital Structure:
  • On February 5, 2025, closed a bought deal equity financing of $25,311,000 at $3.35 per share, issuing 7.6 million common shares.
  • Credit Facility: Entered into a commitment letter with ATB Financial on Dec 18, 2024, providing a $10.0 million revolving operating loan and a $20.0 million non-revolving reducing term loan.
  • Outstanding Debt as of June 30, 2025: $18,566,000 (including $4.3 million in current debt and $3.6 million in lease liabilities).
  • Company remains in compliance with financial covenants (Net Funded Debt to EBITDA ratio < 3.50:1.00).
• Strategic Expansion and Manufacturing:
  • Expanded U.S. operations into Texas (Houston, Dallas, San Antonio, Austin, Midland), Denver (CO), Phoenix (AZ), and Las Vegas (NV).
  • Manufacturing capacity ramped up to 30-35 towers per week by end of Q2 2025 (up from ~20 per week earlier in the quarter).
  • Target for 2025 manufacturing: 1,200 to 1,400 security towers.
  • Assessing impact of tariffs; cameras ordered late 2024 at stable prices; ~35% of steel components procured prior to tariff imposition.
• Outlook:
  • Focus on expanding U.S. operations and growing Canadian revenues.
  • Initiatives to control supply chain, reduce bottlenecks, and lower per-unit capital costs through economies of scale.
  • Developing new AI-based and mobile security products with smaller footprints based on customer demand.

Notable Quotes

• Todd Ziniuk, President and CEO: "We are extremely pleased with the pace of our expansion in the U.S. and the sustained demand we are experiencing in Canada. Our continued investments in sales capabilities, operational infrastructure, and technology are driving strong momentum across both markets."
• Todd Ziniuk, President and CEO: "We remain committed to delivering turnkey, innovative security solutions with industry leading service levels, and are on track to achieve our 2025 manufacturing target of 1,200 to 1,400 security towers."