Boardwalktech loses $500,000 (U.S.) in fiscal Q2 2026

Executive Summary

• Boardwalktech reported Q2 FY 2026 revenue of $1 M, a modest 4% increase sequentially but a 25% decline year‑over‑year.
• Adjusted EBITDA improved to a $400 K loss (44% better than the prior quarter) and net loss narrowed to $500 K versus $900 K in Q1 FY 2026.
• Cash on hand was $40 K with $600 K of trade receivables; outstanding debt remained $2.6 M under a line of credit maturing March 2027.

Key Details

• Revenue: $1 M for the quarter ended Sept. 30, 2025 (Q2 FY 2026).
• Year‑over‑year change: –25% versus Q2 FY 2025 ($1.3 M); +4% sequentially versus Q1 FY 2026 ($900 K).
• Annual Recurring Revenue (ARR): $3.8 M at Sept. 30, 2025 (non‑IFRS metric).
• Gross margin: 86.7% (up from 83.5% in Q1 FY 2026; down from 88.7% in Q2 FY 2025).
• Adjusted EBITDA: $400 K loss (44% improvement vs. $600 K loss in Q1 FY 2026; flat versus Q2 FY 2025).
• Non‑IFRS net loss: $400 K, or $0.01 per share (improved from $700 K loss in Q1 FY 2026 and $500 K loss in Q2 FY 2025).
• GAAP net loss: $500 K, or $0.01 per share (down from $900 K loss in Q1 FY 2026 and $700 K loss in Q2 FY 2025).
• Cash position: $40 K cash; $600 K trade & other receivables as of Sept. 30, 2025.
• Operating cash usage: Decreased by $1.6 M YoY for the quarter.
• Debt: $2.6 M drawn on a Celtic Bank line of credit, re‑classified as current liability under IFRS; maturity March 2027.
• Management commentary: CEO Andrew T. Duncan highlighted upcoming late‑stage license agreements, upgrade projects adding professional services revenue, and AI‑enhanced product opportunities as drivers for expected second‑half revenue improvement and a path to EBITDA break‑even.

Notable Quotes

“Although fiscal 2026 has been challenging thus far from a revenue growth perspective, we're starting to see customers leverage their Velocity and Digital Ledger successes with expanding deployments… When combined with our recent cost‑reduction initiatives, this anticipated growth positions the company to soon reach EBITDA break‑even.” – Andrew T. Duncan, CEO

Materiality Assessment: Material – Neutral (the release provides material financial performance information that could influence investor decisions).