Avante (XX) Q2 2026 earnings summary

Executive summary

• Achieved 10% year-over-year revenue growth in Q2 2026, reaching CAD 8.9 million, with strong contributions from NSSG (47% growth) and Avante Black (48% growth).

• Adjusted EBITDA increased 73% to CAD 584,000, marking the second consecutive quarter of positive net income.

• Net income reached CAD 83,000, reversing a net loss of CAD 909,000 in the prior year’s quarter.

• Maintains a strong, bank debt-free balance sheet with CAD 4.2 million in cash and CAD 12 million in undrawn credit facilities.

Financial highlights

• Q2 2026 revenue: CAD 8.9 million, up from CAD 8.1 million in Q2 2025.

• Gross profit rose 7% to CAD 3.7 million, with gross margin stable at 42%.

• Recurring monthly revenue (RMR) increased 14% to CAD 4.2 million.

• Adjusted EBITDA from continuing operations: CAD 584,000, up 73% year-over-year.

• Cash and cash equivalents stood at CAD 4.28 million, with no funded debt.

Outlook and guidance

• Targeting just under 15% adjusted EBITDA margin for fiscal 2026, with continued improvement in revenue, cash flow, and EBITDA expected.

• Focused on scaling MAST platform, expanding international revenues via NSSG, and introducing new products and services.

• Positive outlook for fiscal 2026, with expected organic growth across all service lines, including Avante Black, HALO, Avante Verified, and MAST.

• Anticipates CapEx of approximately $500,000 over the next 6–9 months, primarily for MAST production.