Boardwalktech Software (BWLK) Q1 2026 earnings summary

Executive summary

• Revenue for Q1-FY26 was $0.9 million, down 6% sequentially and 28% year-over-year, mainly due to two customer non-renewals.

• Gross margin for Q1-FY26 was 83.5%, down from 85.3% in Q4-FY25 and 87.9% in Q1-FY25, with expectations to return to about 90% in future quarters.

• Adjusted EBITDA loss improved to $(0.6) million, a 15% sequential improvement, but higher than the $(0.4) million loss in Q1-FY25.

• Net loss for Q1-FY26 was $(0.9) million, a 17% sequential improvement, despite lower revenues.

• Cost-saving initiatives and new product launches, including AI-driven solutions, are expected to drive future growth.

Financial highlights

• Annual recurring revenue (ARR) at March 31, 2025, was $3.8 million.

• Adjusted operating expenses (excluding share-based payments and depreciation) were $1.4 million, down from $1.6 million in Q4-FY25 and $1.5 million in Q1-FY25.

• Non-IFRS net loss for Q1-FY26 was $(0.7) million, or $(0.01) per share, compared to $(0.9) million in Q4-FY25 and $(0.5) million in Q1-FY25.

• Cash at quarter-end was $0.1 million, with $0.4 million in accounts receivable; monthly cash burn reduced to $75,000.

• Outstanding debt was $2.5 million, drawn from a $4 million credit line, with $0.4 million available.

Outlook and guidance

• Several large license agreements are in late-stage execution, expected to close in the coming months, supporting confidence in accelerated and sustainable revenue growth for FY26 and beyond.

• New business development resources and partners, especially in financial services, are showing positive traction.

• Additional cost-saving actions are projected to save $0.7–$0.8 million over the next year.

• AI-driven product launches, including Automated Controls Testing and Boardwalk Agent AI, are expected to generate near-term revenue.