Avante (XX) investor relations material

Executive summary

• Achieved revenue of CAD 10 million (USD 10.0 million) for Q1 2027, a 14.4% year-over-year increase, with strong adjusted EBITDA growth and expansion in high-margin business lines and international deployments.

• Focused on technology-enabled security solutions, with significant momentum in MAST (Mobile Automated Surveillance Tower), Avante Black, and the launch of TESEUM, an AI-powered intelligence platform via NSSG.

• Maintains a positive outlook for fiscal 2027, prioritizing recurring revenue growth, margin improvement, and disciplined M&A.

• Secured a partnership with Target Park Group to deploy the MAST platform across North American parking lots.

Financial highlights

• Revenue for Q1 2027 was CAD 10 million (USD 10.0 million), up 14.4% year-over-year from CAD 8.7 million.

• Adjusted EBITDA rose 128% to CAD 818,000 (USD 0.8 million) from CAD 359,000 year-over-year.

• Gross profit increased to CAD 4.5 million, with gross margin improving to 44.9% from 37.9%, a 700 basis point gain.

• Cash and cash equivalents stood at CAD 6.8 million (USD 6.8 million), up 44% year-over-year, with no debt.

• Positive operating cash flow of CAD 1.2 million (USD 1.2 million) for the quarter.

Outlook and guidance

• Expects recurring revenue and margin expansion through scaling HALO and MAST deployments and growing higher-margin segments.

• Adjusted EBITDA margin target for fiscal year is 8%-10%, with gross margin expected to remain at or above Q1 levels.

• Positioned to fund organic growth and pursue strategic M&A with a debt-free balance sheet and CAD 12 million (USD 12 million) in available credit.