DATA Communications Management (DCM) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 8.2% YoY to $114.0M, including 2.9% organic growth; gross profit and Adjusted EBITDA grew faster than revenue.

• Octacom contributed from July 8, adding higher-margin revenue and early commercial momentum through customer wins and cross-selling.

• Net loss was $2.9M versus net income of $1.1M a year earlier; Adjusted net income was $1.3M versus $0.1M.

Financial highlights

• Revenue was $114.0M versus $105.4M; gross profit increased 22.7% to $30.2M.

• Adjusted EBITDA rose 29.0% to $15.9M from $12.3M.

• YTD free cash flow was $15.5M versus $8.2M, up 90.1%; operating cash generated was $27.3M versus $16.8M.

• 9M revenue was $342.4M versus $342.8M; Adjusted EBITDA was $49.2M versus $47.5M.

• 9M net income was $1.0M versus $9.9M; Adjusted net income was $8.6M in both periods.

Outlook and guidance

• Organic revenue growth is expected to continue in Q4 2026, with a full quarter of Octacom contribution; quarter-end momentum was viewed as positioning the business well for 2027.

• Management cited new-logo wins, a healthy pipeline, core market stabilization, strong cash flow and liquidity to support growth.

• Priorities include higher gross margins through mix and efficiencies, profitable growth and operational discipline.