Plurilock Security (PLUR) Q1 2026 earnings summary

Executive summary

• Achieved 34% gross margin in Critical Services for Q1 2026, up from 28% in Q4 2025, and consolidated gross margin rose to 14.3% from 11.7% year-over-year.

• Operating expenses reduced by 36% year-over-year, supporting a 27% improvement in adjusted EBITDA loss and 24% improvement in EBITDA loss compared to Q1 2025.

• Strategic focus on higher-margin services and cost discipline positions the company for sustainable, profitable growth.

Financial highlights

• Total revenue for Q1 2026 was $10.19M, down from $18.86M in Q1 2025, reflecting a shift away from lower-margin resale activities.

• Hardware and systems sales revenue dropped to $196K (1.9% of total), while software, license, and maintenance sales were $8.01M (78.6% of total), and professional services revenue was $1.99M (19.5% of total).

• Gross margin improved to 14.3% from 11.6% year-over-year due to a disciplined revenue mix.

• EBITDA loss improved to $(1.65)M from $(2.17)M, and adjusted EBITDA loss improved to $(0.80)M from $(1.10)M year-over-year.

• Net loss for Q1 2026 was $(2.31)M, or $(0.03) per share, compared to $(3.01)M, or $(0.04) per share, in Q1 2025.

• Cash and cash equivalents at March 31, 2026, were $1.48M, down from $2.56M at December 31, 2025.

• Cash used in operating activities was $2.31M, down from $5.14M in the prior year.

Outlook and guidance

• Continued focus on margin growth in Critical Services and shift toward services-led, AI-native cybersecurity.

• Anticipates sustained demand from defense and NATO-aligned markets, with opportunities to expand in Canadian and global defense sectors.

• Strategy includes converting one-time engagements to recurring contracts, improving service mix, and maintaining operational efficiency.

• Strengthening partnerships with major defense contractors to access larger programs.

• Disciplined cost management and investment in high-margin growth areas to drive margin expansion and progress toward cash-flow positivity.