UNISYNC Corp. Reports Q1 Fiscal 2026 Results

Executive Summary

• Unisync Corp. reported Q1 2026 net income of $0.9 M ($0.05 per share), reversing a net loss of $0.7 M ($0.04 per share) year‑over‑year.
• Gross margin improved to 23.7% from 19.7% YoY, and Adjusted EBITDA rose 3.9% to $2.7 M (12.9% of revenue).
• The company secured an additional $7.5 M of annualized new business during the quarter and highlighted a robust pipeline for 2026.

Key Details

• Net Income: $0.9 M ($0.05/share) vs. loss of $0.7 M ($0.04/share) in Q1 2025.
• Pre‑Tax Income: $1.2 M vs. a pre‑tax loss of $1.0 M in the prior year.
• Revenue: $20.9 M for Q1 2026, down slightly from $21.4 M YoY due to lower public‑sector volumes.
• Gross Margin: 23.7% (up from 19.7% YoY).
• Adjusted EBITDA: $2.7 M, representing 12.9% of revenue, a 3.9% improvement YoY.
• Interest Expense: Decreased by $0.2 M owing to reduced borrowings.
• Foreign Exchange Impact: $0.1 M unrealized FX gain versus $1.3 M loss in the prior year.
• New Business Secured: $7.5 M of annualized contracts added during the quarter across telecommunications, quick‑service restaurant, and government sectors.
• Segment Highlights:
• UGL continues to pursue a pipeline of material opportunities in Canada and the U.S. for calendar 2026.
• Peerless Garments holds $25.3 M in firm contracts and options as of Dec 31 2025, with ongoing pursuit of additional contracts.
• Management Commentary: Executive Chairman Tim Gu emphasized stronger margins, improved efficiency, and confidence in future opportunities.

Notable Quotes

“The year is off to a strong start and demonstrates the momentum we have built across the business,” said Tim Gu, Executive Chairman. “We are delivering stronger margins, better efficiency, and improved profitability… The momentum we have today gives us confidence in the opportunities ahead.”