Zedcor (ZDC) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 2025 revenue of CAD 17.9 million (up 73% year-over-year and 12% sequentially from Q3 2025) and full-year revenue of CAD 58.9 million, a 79% increase over 2024.

• Adjusted EBITDA for Q4 was CAD 7.1 million (40% margin), up 78% year-over-year; full-year adjusted EBITDA was CAD 21.8 million (37% margin), up 82%.

• U.S. expansion accelerated, with U.S. revenue comprising 43% of Q4 and 36% of full-year revenue.

• Security tower fleet grew 109% year-over-year to nearly 2,800 units, with 1,454 deployed in the U.S. by year-end.

• Diversified customer base across construction, retail, and logistics, reducing reliance on any single customer.

Financial highlights

• Q4 gross margin was CAD 11.1 million, or 62% of revenue.

• Adjusted EBITDA per share rose to CAD 0.07, reflecting higher sales and cost controls.

• Net debt at year-end was just under CAD 38.4 million; net debt to LTM EBITDA was 1.76x.

• Adjusted free cash flow for 2025 was CAD 20.9 million, more than double the prior year.

• Cash flow from operating activities increased 54% year-over-year to CAD 17.0 million.

Outlook and guidance

• Targeting production of at least 1,800 towers in 2026, aiming for a cumulative total near 5,000 towers.

• Continued U.S. expansion with plans for 6–8 new branches in 2026.

• Focus on in-house manufacturing to control supply chain and reduce capital costs.

• Continued product innovation, including AI-based and smaller mobile security solutions.

• SG&A expected to grow in absolute terms but decrease as a percentage of revenue over the next 2–3 years.