Baylin Technologies (BYL) Q3 2026 earnings summary

Executive summary

• Q3 revenue more than doubled YoY to CAD 35.3M, primarily reflecting Kaelus’s first full quarter; Adjusted EBITDA remained positive for an 11th consecutive quarter.

• Gross margin fell to 34.6% from 43.4% YoY amid product mix and cost pressures; net loss narrowed to CAD 0.7M from CAD 1.1M.

• Carrier spending delays, a covenant shortfall and restricted Kaelus payments contributed to withdrawal of 2026 guidance and ongoing financing risks.

Financial highlights

• Q3 revenue was CAD 35.3M vs. CAD 16.8M, up 110.7%; gross profit was CAD 12.2M vs. CAD 7.3M, and gross margin was 34.6% vs. 43.4%.

• Q3 operating expenses were CAD 13.0M vs. CAD 7.6M, including CAD 0.6M in acquisition-related costs; Adjusted EBITDA was CAD 0.7M vs. CAD 0.6M.

• Q3 net loss was CAD 0.7M vs. CAD 1.1M; cash from operations was CAD 0.8M versus a small outflow a year earlier.

• 9M revenue rose 26.4% to CAD 73.4M; gross profit increased CAD 3.6M to CAD 29.3M, while net loss was CAD 6.2M vs. CAD 2.1M.

Outlook and guidance

• FY2026 quantitative outlook was withdrawn due to deferred customer orders and reduced demand visibility; no replacement quantitative guidance was issued.

• Q4 expectations: Kaelus revenue to remain solid with margin improvement; Custom Antenna Solutions revenue comparable to Q3; Satcom outlook more favorable; Wireless Infrastructure volumes below historical levels.

• Custom Antenna Solutions FY revenue is expected to be similar to 2025; Wireless Infrastructure results are expected softer than strong 2025, with carrier spending recovery anticipated in 2027.

• Satcom FY revenue, gross profit and Adjusted EBITDA are expected below 2025 despite a more favorable Q4 outlook; management retained the view that the combined business can reach a 10% operating Adjusted EBITDA rate at fuller run rate.