BOARDWALKTECH REPORTS SECOND QUARTER FISCAL 2026 FINANCIAL RESULTS

Executive Summary

• Boardwalktech reported Q2‑FY2026 revenue of $1.0 M, a modest 4% increase sequentially but a 25% decline year‑over‑year.
• Adjusted EBITDA improved to a loss of $(0.4) M (44% better than Q1), while net loss narrowed to $(0.5) M versus $(0.9) M in the prior quarter.
• Cash on hand was $0.04 M; outstanding debt remained $2.6 M under a line of credit maturing March 2027, with cost‑reduction initiatives underway.

Key Details

• Revenue: $1.0 M for Q2‑FY26 (↑4% QoQ, ↓25% YoY).
• Annual Recurring Revenue (ARR): $3.8 M at September 30, 2025 (non‑IFRS metric).
• Gross Margin: 86.7% (up from 83.5% in Q1‑FY26; down from 88.7% in Q2‑FY25).
• Adjusted EBITDA: Loss of $(0.4) M (44% improvement vs. Q1‑FY26 loss of $(0.6) M; flat versus Q2‑FY25).
• Non‑IFRS Net Loss: $(0.4) M, or $(0.01) per share (same as prior quarter, improved from $(0.7) M in Q1‑FY26).
• Net Loss (GAAP): $(0.5) M, or $(0.01) per share (down from $(0.9) M in Q1‑FY26).
• Cash Position: $0.04 M cash; $0.6 M trade and other receivables.
• Debt: $2.6 M drawn on Celtic Bank line of credit, reclassified as current liability under IFRS (maturity March 2027).
• Cost‑Reduction Actions: Implemented in August 2025, contributing to improved cash usage and margin trends.
• Operational Outlook: CEO Andrew T. Duncan highlighted ongoing late‑stage license agreements, upgrade projects, and AI‑enhanced product opportunities expected to drive ARR growth and move toward EBITDA break‑even in H2 FY26.

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, Boardwalktech

All forward‑looking statements are subject to risks and uncertainties detailed in the company's filings.