Dye & Durham (DND) investor relations material

Executive summary

• Revenue for Q3 FY2026 was CAD 91.2 million, down 12% year-over-year, mainly due to market downturn, customer attrition, and the Credas divestiture.

• Adjusted EBITDA for Q3 FY2026 was CAD 42.9 million, down 19% year-over-year, with margin stabilizing at 47% due to cost-saving initiatives.

• Net income for Q3 FY2026 was CAD 66.0 million, a turnaround from a net loss in the prior year, primarily due to the gain on disposal of Credas and improved margins.

• Transformation program execution is progressing, focusing on product innovation, commercial excellence, operational efficiency, and financial discipline.

• The business is stabilizing amid seasonality and market headwinds, with operational improvements and new product launches driving customer wins.

Financial highlights

• Q3 revenue was CAD 91.2 million, down 12% year-over-year; nine-month revenue was CAD 306.5 million, down 9% year-over-year.

• Q3 adjusted EBITDA was CAD 42.9 million, down 19% year-over-year; nine-month adjusted EBITDA was CAD 143.7 million, down 22%.

• Adjusted EBITDA margin stabilized at 47% in Q3 and 46.9% for the nine months.

• Net income for the nine months was CAD 5.9 million, compared to a net loss of CAD 58.4 million in the prior year.

• Cash flow from operations for Q3 FY2026 was CAD 66.0 million.

Outlook and guidance

• Transformation initiatives target annualized run-rate cost savings of CAD 17–19 million by fiscal 2027, with 60% realized in fiscal 2026.

• Cost savings are driven by offshoring, automation, vendor management, and office footprint optimization.

• Cost savings of CAD 11 million to be realized in fiscal 2026, with an additional CAD 6–8 million targeted for fiscal 2027.

• The company has withdrawn its long-term financial outlook due to lower transaction volumes, real estate softness, and increased competition.

• No updates will be provided on long-term financial indicators; reporting will focus on recent quarter performance.