Dye & Durham (DND) investor relations material

Executive summary

• Q4 revenue, excluding Credas disposal, grew 4% year-over-year to CAD 104.2 million, with adjusted EBITDA up 18% and margin expanding to 53% from 45% last year.

• Fiscal 2026 revenue was CAD 410.7 million, down 7% year-over-year, and adjusted EBITDA was CAD 198.8 million, down 15%, reflecting a company in transition.

• Net loss for the year was CAD 38.5 million, significantly improved from CAD 88 million last year, aided by the CAD 81.5 million gain on the sale of Credas.

• Leadership is focused on operational efficiency, automation, and AI to drive cost savings and improve customer experience.

• The company achieved approximately CAD 20 million in annualized run rate cost savings in fiscal 2026, ahead of target.

Financial highlights

• Q4 revenue: CAD 104.2 million; full-year revenue: CAD 410.7 million.

• Q4 adjusted EBITDA: CAD 55.1 million (up 18% excluding Credas); margin at 53%.

• Full-year adjusted EBITDA: CAD 198.8 million (down 14% excluding Credas); margin at 48%.

• Q4 net loss: CAD 19.9 million; full-year net loss: CAD 38.5 million.

• Q4 operating cash flow: CAD 65.6 million; full-year: CAD 153.4 million.

Outlook and guidance

• Transition to a global operating model, with focus on automation, AI, and cost discipline, will continue through fiscal 2027.

• Reinvestment of operational savings into product development is expected to drive sustainable growth.

• No specific Q1 2027 revenue guidance provided; management is monitoring churn and new customer trends.

• Deleveraging and cash generation remain top priorities.