Avante (XX) Q1 2026 earnings summary

Executive summary

• Achieved 11% year-over-year revenue growth in Q1 2026, reaching $8.8 million, with recurring monthly revenue up 25% to $4.1 million.

• NSSG division delivered 126% revenue growth, driven by enhanced sales processes and operational alignment.

• Positive net income of $11,000 in Q1 2026, a turnaround from a net loss of $128,000 in Q1 2025.

• Adjusted EBITDA from continuing operations was $360,000, in line with the prior year.

• Continued momentum from operational streamlining, acquisitions, and focus on high-margin, tech-enabled offerings.

Financial highlights

• Revenue from continuing operations was $8.75 million, up from $7.91 million in the prior year quarter.

• Gross profit increased 10% year-over-year to $3.3 million; gross margin stable at 37.9%.

• Recurring monthly revenue reached $4.06 million, a 25% year-over-year increase.

• 46% of Q1 revenue was from contracted recurring sources, with 98% client retention.

• Net income from continuing operations was $11 thousand, compared to a net loss of $128 thousand in the prior year.

Outlook and guidance

• Management expects record levels for revenue, recurring monthly revenue, and Adjusted EBITDA in fiscal 2026.

• Targeting 14%-15% adjusted EBITDA margin and 42%-44% gross margin for the year.

• Plans to leverage NSSG for international revenue growth and ramp up WALL-E business.

• No further reorganization expenses expected; business model described as highly predictable.

• Focus on growing Adjusted Net Income per share and reinvesting cash flows into business growth.