Zedcor (ZDC) investor relations material

Executive summary

• Achieved record Q2 revenue of $13.5M, up 84% year-over-year and 18% quarter-over-quarter, with U.S. revenue comprising 32% of total and high utilization rates near 100%.

• Adjusted EBITDA reached $4.9M in Q2, an 83% increase year-over-year, with a strong 36% margin.

• Deployed 316 towers in Q2, with total fleet utilization above 90% and production rates exceeding targets.

• Significant U.S. expansion, especially in Texas and the Southern U.S., with continued growth in Canada and new branches.

• Continued product innovation and customer diversification, especially in residential construction and retail security.

Financial highlights

• Six-month revenue totaled $25M, up 85% from the prior year period, with Q2 2025 revenue at $13.5M vs. $7.4M in Q2 2024.

• Six-month adjusted EBITDA was $9M (34% margin), up from $4.6M year-over-year; Q2 adjusted EBITDA margin held steady at 36%.

• Net income for Q2 2025 was $460,000 vs. $1.4M in Q2 2024, with 2024 including $1.37M in one-time other income.

• Cash balance at quarter-end was $6.4M, with $10M available in the credit facility and working capital at $2.9M.

• Adjusted free cash flow for Q2 2025 was $932,000 compared to $1.0M in Q2 2024.

Outlook and guidance

• Expecting to reach the higher end of 1,200–1,400 towers by year-end, with production on track to hit 50 towers per week by September.

• Focus remains on expanding U.S. operations and growing Canadian revenues, leveraging infrastructure spending and increased security demand.

• U.S. margins anticipated to catch up to Canadian levels as density increases, with Texas maturing fastest.

• Strategic initiatives include supply chain control, economies of scale, and new product development based on customer needs.

• SOC 2 compliance expected within 6–7 months, opening doors to more large enterprise clients.