Zedcor (ZDC) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of CAD 19.4 million, up 69% year-over-year, driven by U.S. expansion and new customer wins in logistics, retail, and home building sectors.

• U.S. revenue surpassed Canadian revenue for the first time, now representing over 50% of total revenue.

• Adjusted EBITDA reached a record CAD 7.6 million, up 86% year-over-year, with margin expanding to 39% from 36% due to operating scale and cost efficiencies.

• MobileyeZ™ fleet grew to 3,261 units, with U.S. fleet size up 233% year-over-year to 1,878 units.

• Customer base diversified with new enterprise wins across logistics, retail, and residential construction.

Financial highlights

• Revenue for Q1 2026 was CAD 19.4 million, compared to CAD 11.5 million in Q1 2025 and CAD 17.9 million in Q4 2025.

• Adjusted EBITDA was CAD 7.6 million, up from CAD 4.1 million in Q1 2025 and CAD 7.1 million in Q4 2025.

• Adjusted free cash flow before non-cash working capital was CAD 6.4 million, up 80% year-over-year.

• Capital expenditures rose to CAD 19.3 million, primarily for fleet growth and manufacturing expansion.

• Net loss of CAD 278,000 in Q1 2026, compared to net income of CAD 622,000 in Q1 2025, reflecting higher G&A, depreciation, and finance costs from U.S. growth investments.

Outlook and guidance

• Targeting exit 2026 fleet size of 4,300–4,800 towers, with continued U.S. expansion and recurring revenue growth.

• Projected annualized Canadian revenue growth of 20%-30%.

• Plans to expand manufacturing capacity, enhance AI-enabled security solutions, and drive operating leverage for sustainable growth.

• Utilization targeted in the mid-80% range, with ability to surge higher if large contracts are won.