Avante (XX) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 revenue of CAD 8.4 million, up 21% year-over-year, driven by NSSG acquisition, Avante Black growth, and organic expansion.

• Adjusted EBITDA rose 74% year-over-year to CAD 770,000, reflecting improved profitability and operational efficiency.

• Recurring monthly revenue increased 25% year-over-year, with 43% of Q3 revenue from contracted recurring sources.

• Company is bank debt-free, with CAD 5 million in cash and CAD 12 million in undrawn credit facilities.

• No reorganization expenses in Q3 2025, marking a transition to a more efficient cost structure.

Financial highlights

• Revenue for Q3 2025 was CAD 8.4 million, up from CAD 6.9 million in Q3 2024.

• Gross profit increased 17% to CAD 3.4 million, with gross margin at 40.9% versus 42.5% a year ago.

• Adjusted EBITDA from continuing operations was CAD 770,000, up from CAD 442,000 in Q3 2024.

• Net loss from continuing operations: $(155)K in Q3 2025, improved from $(909)K in Q2 2025.

• Recurring monthly revenue (RMR) reached CAD 3.61 million, up 25% year-over-year.

Outlook and guidance

• Positive outlook for the remainder of fiscal 2025 and into next year, with expectations of continued revenue, cash flow, and EBITDA growth.

• Anticipates international revenue growth as NSSG enables global client acquisition.

• Long-term objectives include building recurring revenues, achieving industry-consistent adjusted EBITDA margins (15%-20%), and reinvesting cash flow for growth.

• Actively seeking M&A opportunities to expand services.