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%.

• Significant U.S. expansion, with U.S. revenue now exceeding Canadian revenue on a daily run-rate basis and accounting for 43% of Q4 and 36% of full-year revenue.

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

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

Financial highlights

• Q4 recurring revenue remained steady; gross margin for Q4 was CAD 11.1 million (62%).

• Adjusted EBITDA per share increased 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

• 2026 tower build target set at a minimum of 1,800, aiming for up to 2,000 units.

• Platform expansion planned for six to eight new U.S. branches in 2026.

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

• Continued investment in sales team and regional expansion to drive growth.

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