Zedcor (ZDC) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue was CAD 26.704M, up 67% YoY and 18% QoQ; Adjusted EBITDA reached CAD 10.326M, up 80% YoY and 18% QoQ.

• Adjusted EBITDA margin increased to 39% from 36%; net loss was CAD 3.281M, reflecting growth-related depreciation, stock-based compensation and financing costs.

• Fleet reached 4,494 towers, up 91% YoY; 60% were in the U.S., which generated 55% of Q3 revenue.

• Growth was driven by U.S. expansion, customer additions in both countries, and tower manufacturing and deployment; utilization remained steady.

Financial highlights

• Q3 gross profit rose 52% YoY to CAD 15.5M; gross margin was 58% versus 63%, while gross margin excluding D&A was 78.7% versus 79.5%.

• Q3 EBITDA was CAD 5.452M versus CAD 4.309M; Adjusted EBITDA was CAD 10.326M versus CAD 5.739M.

• Nine-month revenue was CAD 68.808M versus CAD 41.032M; Adjusted EBITDA was CAD 26.7M, up 81%, or 39% of revenue versus 36%.

• Q3 net loss was CAD 3.281M versus net income of CAD 0.131M; nine-month net loss was CAD 5.851M versus net income of CAD 1.213M.

• Q3 Adjusted free cash flow was CAD 8.7M before non-cash working capital and CAD 6.279M after, versus CAD 7.708M after in Q3 2025; working-capital use was CAD 2.386M.

Outlook and guidance

• Production capacity is 45–50 towers weekly, committed for Q4 and Q1, with potential to increase without significant CapEx; management cited visibility of ~1,000 towers.

• 2027 CapEx is initially expected at 2026 levels, excluding lower branch-expansion costs; plans call for four to six new locations while tower investment continues.

• Software phase one is on track for December testing and gradual Q1 rollout; phase two AI analytics development is planned for 2027 at preliminary cost of USD 5M–6M.

• Priorities include U.S. expansion, Canadian revenue growth, manufacturing efficiency, new products and software, positive Adjusted EBITDA per share, and converting the U.S. enterprise pipeline.