DIRTT Reports Fourth Quarter 2025 Financial Results and Provides 2026 Guidance

Executive Summary

• DIRTT reported Q4 2025 revenue of $50.9 M (up 4%) and Adjusted EBITDA of $6.2 M, both within guidance ranges.
• The company posted a net loss after tax of $3.7 M for the quarter, driven by one‑time impairment charges, foreign exchange losses and reorganization expenses.
• Management provided FY 2026 guidance: revenue $194–$209 M; Adjusted EBITDA $26–$31 M, and announced receipt of C$5.5 M financing from BDC plus a committed facility up to C$15 M.

Key Details

• Revenue: $50.9 M (Q4 2025) vs. $48.9 M (Q4 2024), 4% increase; in line with guidance $48–$52 M.
• Gross Profit / Margin: $18.6 M; margin 36.6% (up from 35.9%).
• Adjusted EBITDA: $6.2 M (12.1% of revenue), up $0.7 M YoY, within guidance $5–$7 M.
• Net Loss After Tax: $(3.7) M vs. $4.0 M profit YoY; loss driven by:
• Impairment charge – $2.9 M (lease termination, right‑of‑use asset write‑offs).
• Foreign exchange loss – $0.3 M vs. $2.1 M gain prior year.
• Reorganization expense – $1.8 M increase YoY.
• Liquidity: $32.1 M (unrestricted cash + borrowing capacity) at Dec 31 2025, down from $39.3 M.
• Financing Activity:
• BDC committed up to C$15 M; C$5.5 M received on Feb 13 2026.
• Priority agreement with RBC and amendment of existing RBC facility (Fifth Extended RBC Facility).
• Debt Repayment: Fully repaid C$16.6 M (US$12.1 M) convertible debentures on Jan 31 2026.
• Shareholder Actions: Renewed normal‑course issuer bid (NCIB) to acquire up to 9,593,878 shares; open‑market purchases until Dec 21 2026.
• Leadership Changes:
• Scott Robinson – Executive Chairman (effective Nov 26 2025).
• Adrian Zarate – Chief Transformation Officer (effective Nov 26 2025).
• Aaron Merkin – new CTO (Jan 12 2026).
• Richard Hunter departed as President & COO (Jan 12 2026).
• Litigation: Falkbuilt litigation trial commenced Feb 2 2026; DIRTT seeking damages in Alberta court.
• Support Agreements:
• 2026 Support Agreement with 22NW Fund and 726 Entities signed Feb 17 2026.
• Jeremy Gold appointed to Board (effective Feb 13 2026).
• Outlook & Guidance (FY 2026):
• Revenue: $194–$209 M.
• Adjusted EBITDA: $26–$31 M.
• Conference Call: Scheduled for Feb 26 2026, 08:00 a.m. MDT / 10:00 a.m. EDT; hosted by CEO Benjamin Urban and CFO Fareeha Khan.

Notable Quotes

“December 2025 was our highest revenue month in over two years… we are beginning to see a return to normalcy in our sales and earning power.” – Benjamin Urban, CEO
“We closed the quarter with $32.1 M of liquidity… have secured C$15 M of committed financing, of which C$5.5 M has been received.” – Fareeha Khan, CFO