Jemtec earns $55,925 in Q3

• Jemtec Inc. reported Q3 fiscal 2026 (ended April 30, 2026) net income of $55,925, an increase from $50,741 in the same period of the prior year.
• Revenue declined 7% year-over-year, primarily driven by the loss of a CBSA (Canada Border Services Agency) contract associated with CSC (Correctional Service Canada).
• Direct costs decreased by 15% due to lower equipment rental, installation, monitoring, and travel expenses.
• Operating expenses remained consistent with Q3 2025, with noted fluctuations in professional fees and share-based payments.
• The company maintains a debt-free balance sheet with $2.72M in cash and cash equivalents, and working capital of $2.62M.
• Management is actively reorganizing its business model to prioritize profitable contracts and expects positive returns moving forward.

• The top-line contraction of 7% is a clear operational headwind, directly tied to a lost government contract. However, the company successfully offset this through a 15% reduction in direct costs, preserving bottom-line profitability.
• The net income increase of ~10% demonstrates effective cost management and operational discipline, but does not constitute a fundamental re-rating of the business.
• Liquidity remains robust with no debt, eliminating near-term capital raising risks. The cash position comfortably covers working capital needs.
• Given the micro-cap nature of the company and the incremental nature of the profit beat, the market impact is expected to be muted.

• Jemtec Inc. operates in the private bail and correctional services sector in Canada.
• Core revenue drivers include contracts with the Province of Saskatchewan, CSC, interest income, and fees from private bail clients.
• The business model relies on equipment rental, installation, monitoring, and travel services associated with bail compliance.
• The company is currently undergoing a strategic reorganization to focus on higher-margin contracts and reduce operational overhead.