Zedcor (ZDC) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of CAD 22.7 million, up 68% year-over-year and 17% sequentially, driven by U.S. expansion, higher tower count, and strong customer demand.

• Adjusted EBITDA reached CAD 8.8 million, up 77% year-over-year and 14% quarter-over-quarter, with margin expanding to 39%.

• Customer base surpassed 1,000, with over 500 in the U.S., and significant growth in enterprise and construction sectors; U.S. fleet expanded to over 2,200 towers, maintaining utilization rates above 90% in both Canada and the U.S.

• U.S. operations generated more revenue in H1 2026 than all of 2025, with fleet growth of 180% year-over-year and U.S. revenue accounting for 54% of Q2 total.

Financial highlights

• Q2 revenue: CAD 22.7 million (up 68% YoY); H1 2026 revenue: CAD 42.1 million (up 68% YoY).

• Q2 gross profit: CAD 13.3 million (59% of revenue), up 56% YoY; gross margin declined due to higher depreciation and U.S. expansion costs.

• Adjusted EBITDA: CAD 8.8 million in Q2 (39% margin), CAD 16.4 million in H1 (39% margin), both up significantly YoY.

• Net loss: CAD 2.3 million in Q2 2026 vs. net income of CAD 0.46 million in Q2 2025, reflecting higher G&A, depreciation, and finance costs from U.S. expansion.

• Adjusted free cash flow before working capital: CAD 7.6 million in Q2, up 72% YoY; adjusted free cash flow: CAD 14.8 million in Q2 2026 vs. CAD 1.7 million in Q2 2025.

Outlook and guidance

• Expect continued economies of scale, improved monitoring, and new product innovations to drive future growth.

• Positioned to scale production further at low incremental CapEx if needed, with plans to expand manufacturing capacity and enhance AI-enabled solutions.

• U.S. and Canadian operations both expected to maintain strong growth and margin profiles, with focus on scaling recurring revenue and increasing fleet utilization.