BOARDWALKTECH REPORTS THIRD QUARTER FISCAL 2026 FINANCIAL RESULTS

Executive Summary

• Boardwalktech reported Q3‑FY26 revenue of $1 M (flat QoQ, down 25% YoY) and an adjusted EBITDA loss of $(0.2) M, showing sequential improvement.
• ARR reached $3.8 M; cash on hand was $0.1 M with $0.4 M in accounts receivable; outstanding debt remained $2.5 M under a $4 M line of credit.
• The company announced contract extensions with major enterprise customers, the launch of its new Boardwalk Verity™ AI‑driven controls platform, and an expanded engagement with a leading global IT services firm supporting a top‑five U.S. bank.

Key Details

• Revenue: $1 M in Q3‑FY26 (unchanged QoQ, –25% YoY).
• Annual Recurring Revenue (ARR): $3.8 M as of 31 Dec 2025.
• Gross Margin: 86.9% (up from 86.7% QoQ, down from 88.4% YoY).
• Adjusted EBITDA: $(0.2) M loss (35% improvement vs. prior quarter).
• Net Loss: $(0.4) M ($0.01 per share), improved 18% sequentially.
• Non‑IFRS Net Loss: $(0.3) M, better than $(0.4) M in both Q2‑FY26 and Q3‑FY25.
• Cash Position: $0.1 M cash; $0.4 M accounts receivable.
• Cash Burn: $33k per month (down $0.9 M vs. Q3‑FY25).
• Debt: $2.5 M drawn on a $4 M Celtic Bank line of credit, maturing March 2027.

Operational Highlights * Nov 4 2025: contract renewals & expansions with the world’s largest social media company, a global IT services firm, and a leading chemical manufacturer.
Jan 6 2026: expanded contract with the same global IT services firm to support a top‑five U.S. financial institution.
Jan 20 2026: launch of Boardwalk Verity™, an AI‑driven Intelligent Controls Platform for regulated organizations (banks, insurers, etc.).

Management Commentary

“We continue to see existing customers expand deployments across Velocity and our Digital Ledger platform… Early traction with large banks and global partners reinforces our confidence in Verity as a meaningful growth driver.” – Andrew T. Duncan, CEO

Notable Quotes

• “Recent upgrade initiatives and new opportunities are expected to drive incremental professional services revenue and increase high‑margin ARR.” – Andrew T. Duncan, CEO
• “With previous cost reductions now taking effect… we remain focused on accelerating revenue growth and moving toward Adjusted EBITDA breakeven in the near term.” – Andrew T. Duncan, CEO