Dye & Durham Reports First Quarter Fiscal 2027 Financial Results
Idag, 16:16
Dye & Durham Reports First Quarter Fiscal 2027 Financial Results
Canada NewsWire
TORONTO, Nov. 12, 2026
- Revenue was $94.9 million, representing a decrease of $13.4 million, or 12.4% (8% excluding Credas), from Q1 FY2026
- Net loss narrowed to $11.1 million from $38.3 million in Q1 FY2026 and $19.9 million in Q4 FY2026, respectively
- Adjusted EBITDA was approximately $46.6 million (49.1% of revenue) compared to $50.4 million (46.6% of revenue) in Q1 FY2026
TORONTO , Nov. 12, 2026 /CNW/ — Dye & Durham Limited (the " Company " or "Dye & Durham ") (TSX: DND), a leading provider of cloud-based legal practice management software, today announced that it has reported its financial results for the three months ended September 30, 2026 (" Q1 FY2027 ") in respect of fiscal 2027 (" Fiscal 2027 ").
"In the first quarter of Fiscal 2027, we aimed to build on the stabilization and modernization efforts we established and moved rapidly to align our cost base with cyclical revenue softness, resulting in a reduction of operating costs by approximately 17% year-over-year" said Todd Schulte, Interim Chief Executive Officer and Chief Operating Officer. "As a result, we were able to lower our net-loss to $11.1 million, make meaningful investments back into the business, advance our AI initiatives to improve the efficiency and workflow of our solutions, and establish fundamental cash generation to strengthen our balance sheet. As we progress in Fiscal 2027, we remain focused on what we can control."
First Quarter Fiscal 2027 Highlights
(Comparison periods in each case are to the three months ended September 30, 2025 (" Q1 FY2026 "), unless otherwise noted)
- Revenue was $94.9 million, representing a decrease of $13.4 million, or 12.4% (8% excluding Credas), from Q1 FY2026. The decrease reflects market downturn, lower volumes in real estate and customer transactions and the disposal of Credas Technologies Ltd. (" Credas ") in Fiscal 2026.
- Net loss was $11.1 million, compared to a net loss of $38.3 million in Q1 FY2026, primarily reflecting a $26.3 million decrease in finance costs, net, to $19.6 million, as well as lower amortization and lower stock-based compensation expense.
- Adjusted EBITDA (1) was $46.6 million (49.1% of revenue), compared to $50.4 million (46.6% of revenue) in Q1 FY2026.
- Operating costs, comprising of direct costs, technology and operations, general and administrative, and sales and marketing costs, were $48.3 million, a decrease of $9.6 million, or 17%, from Q1 FY2026.
- The Company was in compliance with the financial maintenance covenants under its senior credit agreement as of September 30, 2026.
Consolidated Highlights
Selected key metrics:
Three months ended September 30, | ||
2026 | 2025 | |
$ | $ | |
Revenue | 94,866 | 108,302 |
Net loss | (11,076) | (38,272) |
Cash flow provided by operating activities | 31,316 | 40,217 |
Adjusted EBITDA (1) | 46,559 | 50,435 |
1. | Represents a non-IFRS measure. This measure is not a recognized measure under IFRS, does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. See the "Non-IFRS Measures" section of this press release. |
Conference Call Notification
The Company will hold a conference call to discuss its business on Thursday, November 12, 2026 at 12:00 p.m. ET, hosted by Interim Chief Executive Officer and Chief Operating Officer, Todd Schulte, and Interim Chief Financial Officer, Steve Waszak. A question-and-answer session will follow the corporate update.
DATE: | Thursday, November 12, 2026 |
TIME: | 12:00 p.m. ET |
RAPIDCONNECT: | |
TRADITIONAL DIAL-IN NUMBER (TOLL FREE): | 1-888-699-1199 |
GTA DIAL-IN: | 1-416-945-7677 |
WEBCAST URL: | |
REPLAY AVAILABLE UNTIL: | Thursday, November 19 |
TAPED REPLAY (TOLL FREE): | 1-888-660-6345 |
REPLAY CODE: | 97101 # |
Please dial-in at least five minutes before the call begins.
About Dye & Durham Limited
Dye & Durham Limited provides premier practice management solutions empowering legal professionals every day, delivers vital data insights to support critical corporate transactions and enables the essential payments infrastructure trusted by government and financial institutions. The Company has operations in Canada, the United Kingdom, Ireland, Australia, and South Africa.
Additional information can be found at www.dyedurham.com .
Non-IFRS Measures
This press release makes reference to Adjusted EBITDA, Adjusted EBITDA margin and Segment Adjusted EBITDA, which are non-IFRS measures. These measures are not recognized measures under IFRS, do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective and to discuss Dye & Durham's financial outlook. The Company's definitions of non-IFRS measures may not be the same as the definitions for such measures used by other companies in their reporting. Non-IFRS measures have limitations as analytical tools. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of Dye & Durham's financial information reported under IFRS.
The Company uses non-IFRS financial measures, namely, "Adjusted EBITDA", "Adjusted EBITDA margin" and "Segment Adjusted EBITDA", to provide investors with supplemental measures of its operating performance and to eliminate items that have less bearing on operating performance or operating conditions and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. Specifically, the Company believes that the aforementioned non-IFRS financial measures, when viewed with the Company's results under IFRS and the accompanying reconciliations, provide useful information about the Company's business without regard to potential distortions. By eliminating potential differences in results of operations between periods caused by factors such as depreciation and amortization methods and acquisition, restructuring, impairment, gain on disposal of subsidiary and other charges such as acquisition and reorganization related expenses, integration expenses and corporate cost allocations, the Company believes that the non-IFRS financial measures included herein can provide a useful additional basis for comparing the current performance of the underlying operations being evaluated.
The Company believes that securities analysts, investors, and other interested parties frequently use non-IFRS financial measures in the evaluation of issuers. The Company's management also uses non-IFRS financial measures in order to facilitate operating performance comparisons from period to period. Please see "Cautionary Note Regarding Non-IFRS Measures" and "Select Information and Reconciliation of Non-IFRS Measures" in the Company's most recent Management's Discussion and Analysis, which is available on the Company's profile on SEDAR+ at www.sedarplus.ca , for further details, including reconciliations of Adjusted EBITDA and Segment Adjusted EBITDA to their most directly comparable IFRS measures, which information is incorporated by reference herein.
Below are the Company's definitions of the non-IFRS measures used herein:
"Adjusted EBITDA" adjusts net loss by adding back finance costs, amortization, depreciation and impairment costs, income tax expense (recovery), gain on disposal of subsidiary, stock-based compensation expense (recovery), and loss (gain) on contingent receivables, specific transaction-related expenses related to acquisition and reorganization related expenses, integration and operational restructuring costs, and other non-recurring expenses. Operational restructuring costs are incurred as a direct or indirect result of acquisition activities.
"Adjusted EBITDA margin" is Adjusted EBITDA divided by revenue.
"Segment Adjusted EBITDA" is Adjusted EBITDA as defined above and adds back corporate cost allocations. "Segment Adjusted EBITDA" is representative of "Segment (loss) income" noted in the Segment Information footnote of the Financial Statements. "Segment (loss) income after allocated costs" adjusts the "Segment income (loss)" by deducting the corporate cost allocations.
Forward-looking Statements
This press release may contain forward-looking information and forward-looking statements within the meaning of applicable securities laws, which reflects the Company's current expectations regarding future events. All information that is not clearly historical in nature may constitute forward-looking statements. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements.
Forward-looking statements are not historical facts, nor guarantees or assurances of future performance but instead represent management's current beliefs, expectations, estimates and projections regarding future events and operating performance. The forward-looking information is based on management's opinions, estimates and assumptions. While these opinions, estimates and assumptions are considered by Dye & Durham to be appropriate and reasonable in the circumstances as of the date of this press release, they are subject to a number of risks and uncertainties, many of which are beyond Dye & Durham's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to those risk factors discussed in greater detail under the "Risk Factors" section of the Company's most recent annual information form and under the heading "Risks and Uncertainties" in the Company's most recent Management's Discussion and Analysis, which are available under Dye & Durham's profile on SEDAR+ at www.sedarplus.ca . If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information.
There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents Dye & Durham's expectations as of the date specified herein and are subject to change after such date. The Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information or to publicly announce the results of any revisions to any of those statements for any reason, except as required under applicable securities laws. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.
Consolidated Results of Operations
(Expressed in thousands of Canadian dollars and thousands of shares, except per share amounts)
Three months ended September 30, | ||
2026 | 2025 | |
$ | $ | |
Revenue | 94,866 | 108,302 |
Expenses | ||
Direct costs | (7,957) | (9,846) |
Technology and operations | (24,266) | (30,295) |
General and administrative | (11,246) | (12,093) |
Sales and marketing | (4,838) | (5,633) |
Stock-based compensation expense | (110) | (2,766) |
Finance costs, net | (19,559) | (45,885) |
Amortization and depreciation | (31,987) | (33,627) |
Acquisition, restructuring and other costs | (6,827) | (6,730) |
Loss before income taxes | (11,924) | (38,573) |
Income tax recovery | 848 | 301 |
Net loss | (11,076) | (38,272) |
Net loss attributable to: | ||
Non-controlling interests | (211) | (254) |
Shareholders | (10,865) | (38,018) |
(11,076) | (38,272) | |
Net loss per common share | ||
Basic | (0.16) | (0.57) |
Diluted | (0.16) | (0.57) |
Weighted average number of shares outstanding | ||
Basic | 67,182 | 67,171 |
Diluted | 67,182 | 67,171 |
Adjusted EBITDA
(Expressed in thousands of Canadian dollars)
Three months ended September 30, | ||
2026 | 2025 | |
$ | $ | |
Loss for the period | (11,076) | (38,272) |
Amortization and depreciation | 31,987 | 33,627 |
Finance costs, net | 19,559 | 45,885 |
Income tax recovery | (848) | (301) |
Stock-based compensation expense | 110 | 2,766 |
Acquisition, restructuring and other costs | 6,827 | 6,730 |
Adjusted EBITDA | 46,559 | 50,435 |
1 | Depreciation and amortization expense is primarily related to acquired and developed intangible assets, depreciation expense on property, equipment, and right-of-use assets. |
2 | Finance costs are primarily related to interest expenses incurred on borrowings, changes in fair value of convertible debt and derivatives, lease obligations, net of interest income. |
3 | Stock-based compensation represents expenditures recognized in connection with stock options issued to employees and directors and cash-settled RSUs and DSUs issued to directors. |
4 | Acquisition, restructuring, and other costs primarily relate to the following: acquisition and divestiture expenses, including changes to contingent consideration and holdbacks, employee related restructuring and transformation expenses. |
5 | Represents a non-IFRS measure. See "Non-IFRS Measures". |
Condensed Consolidated Interim Statements of Financial Position (Unaudited)
(Expressed in thousands of Canadian dollars)
September 30, | June 30, | ||
2026 | 2026 | ||
$ | $ | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | 88,951 | 41,432 | |
Trade and other receivables | 68,431 | 71,021 | |
Prepaid expenses and other assets | 12,684 | 10,226 | |
Derivative assets, current | 14,406 | 13,981 | |
184,472 | 136,660 | ||
Non-current assets: | |||
Derivative assets | 11,493 | 7,606 | |
Other assets | 3,910 | 4,289 | |
Property and equipment, net | 5,728 | 6,305 | |
Right-of-use assets, net | 10,478 | 10,241 | |
Intangible assets, net | 540,764 | 568,856 | |
Goodwill | 1,062,401 | 1,061,531 | |
Total assets | 1,819,246 | 1,795,488 | |
Liabilities and equity | |||
Current liabilities: | |||
Accounts payable and accrued liabilities | 81,433 | 87,976 | |
Customer advances | 16,219 | 18,374 | |
Holdbacks and contingent consideration on acquisitions, current | 24,172 | 30,132 | |
Lease liabilities, current | 4,620 | 4,868 | |
Loans and borrowings, current | 27,108 | 12,435 | |
Convertible debentures | 101,330 | 104,396 | |
254,882 | 258,181 | ||
Non-current liabilities: | |||
Lease liabilities | 9,078 | 8,895 | |
Loans and borrowings | 1,194,785 | 1,167,014 | |
Deferred tax liabilities | 77,526 | 78,971 | |
Other liabilities | 1,870 | 2,033 | |
Total liabilities | 1,538,141 | 1,515,094 | |
Equity | |||
Capital stock | 824,205 | 824,205 | |
Contributed surplus | 54,367 | 53,461 | |
Accumulated other comprehensive income | 64,777 | 53,896 | |
Deficit | (662,547) | (651,682) | |
Non-controlling interests | 303 | 514 | |
281,105 | 280,394 | ||
Total liabilities and equity | 1,819,246 | 1,795,488 | |
Contingencies and commitments |
Segment Results
(Expressed in thousands of Canadian dollars)
Three months ended September 30, 2026
Canada | UK & Ireland | Australia | South Africa | Total | |
$ | $ | $ | $ | $ | |
Three months ended September 30, 2026 | |||||
Revenue | 56,293 | 21,022 | 17,148 | 403 | 94,866 |
Income (Loss) before taxes | (7,210) | (5,642) | 2,310 | (1,382) | (11,924) |
Finance costs, net | 15,259 | 3,263 | 961 | 76 | 19,559 |
Stock-based compensation expense | 110 | — | — | — | 110 |
Amortization and depreciation | 19,891 | 7,850 | 3,917 | 329 | 31,987 |
Acquisition, restructuring, and other costs | 5,981 | 659 | 187 | — | 6,827 |
Corporate cost allocation | (3,110) | 2,335 | 1,381 | (606) | — |
Segment Adjusted EBITDA (1) | 30,921 | 8,465 | 8,756 | (1,583) | 46,559 |
Three months ended September 30, 2025
Canada | UK & Ireland | Australia | South Africa | Total | |
$ | $ | $ | $ | $ | |
Three months ended September 30, 2025 | |||||
Revenue | 62,228 | 27,333 | 17,666 | 1,075 | 108,302 |
Income (Loss) before taxes | (30,313) | (8,598) | 2,235 | (1,897) | (38,573) |
Finance costs, net | 41,553 | 4,357 | 58 | (83) | 45,885 |
Stock-based compensation expense | 2,766 | — | — | — | 2,766 |
Amortization and depreciation | 21,108 | 9,660 | 2,041 | 818 | 33,627 |
Acquisition, restructuring, and other costs | 4,499 | 1,119 | 1,112 | — | 6,730 |
Corporate cost allocation | (4,533) | 2,309 | 2,051 | 173 | — |
Segment Adjusted EBITDA (1) | 35,080 | 8,847 | 7,497 | (989) | 50,435 |
(1) | Represents a non-IFRS measure. See "Non-IFRS Measures". |
The method used for the allocation of corporate costs to segments is based on the level of consumption when determinable and measurable, otherwise the allocation is based on a proportion of a relevant driver, such as segment revenue.
Summary of Quarterly Results
(Expressed in thousands of Canadian dollars except per share data)
Quarterly results | Q1 2027 | Q4 2026 | Q3 2026 | Q2 2026 |
(Expressed in thousands of Canadian dollars except per share data) | $ | $ | $ | $ |
Revenue | 94,866 | 104,171 | 91,180 | 107,024 |
Net income (loss) (1) | (11,076) | (19,862) | 41,406 | (21,790) |
Adjusted EBITDA (2) | 46,559 | 55,099 | 42,867 | 50,352 |
Net income/ (loss) per common share | (0.16) | (0.30) | 0.62 | (0.32) |
Net income /(loss) per diluted share | (0.16) | (0.30) | 0.62 | (0.32) |
Quarterly results | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 |
(Expressed in thousands of Canadian dollars except per share data) | $ | $ | $ | |
Revenue | 108,302 | 105,173 | 103,420 | 115,746 |
Net loss (1) | (38,272) | (29,552) | (23,449) | (19,664) |
Adjusted EBITDA (2) | 50,435 | 47,744 | 52,862 | 64,652 |
Net loss per common share | (0.57) | (0.44) | (0.35) | (0.30) |
Net loss per diluted share | (0.57) | (0.44) | (0.35) | (0.30) |
(1) | Includes income tax expense / (recovery). |
(2) | Represents a non-IFRS measure. See "Non-IFRS Measures". |
SOURCE Dye & Durham Limited
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Dye & Durham Reports First Quarter Fiscal 2027 Financial Results
Idag, 16:16
Dye & Durham Reports First Quarter Fiscal 2027 Financial Results
Canada NewsWire
TORONTO, Nov. 12, 2026
- Revenue was $94.9 million, representing a decrease of $13.4 million, or 12.4% (8% excluding Credas), from Q1 FY2026
- Net loss narrowed to $11.1 million from $38.3 million in Q1 FY2026 and $19.9 million in Q4 FY2026, respectively
- Adjusted EBITDA was approximately $46.6 million (49.1% of revenue) compared to $50.4 million (46.6% of revenue) in Q1 FY2026
TORONTO , Nov. 12, 2026 /CNW/ — Dye & Durham Limited (the " Company " or "Dye & Durham ") (TSX: DND), a leading provider of cloud-based legal practice management software, today announced that it has reported its financial results for the three months ended September 30, 2026 (" Q1 FY2027 ") in respect of fiscal 2027 (" Fiscal 2027 ").
"In the first quarter of Fiscal 2027, we aimed to build on the stabilization and modernization efforts we established and moved rapidly to align our cost base with cyclical revenue softness, resulting in a reduction of operating costs by approximately 17% year-over-year" said Todd Schulte, Interim Chief Executive Officer and Chief Operating Officer. "As a result, we were able to lower our net-loss to $11.1 million, make meaningful investments back into the business, advance our AI initiatives to improve the efficiency and workflow of our solutions, and establish fundamental cash generation to strengthen our balance sheet. As we progress in Fiscal 2027, we remain focused on what we can control."
First Quarter Fiscal 2027 Highlights
(Comparison periods in each case are to the three months ended September 30, 2025 (" Q1 FY2026 "), unless otherwise noted)
- Revenue was $94.9 million, representing a decrease of $13.4 million, or 12.4% (8% excluding Credas), from Q1 FY2026. The decrease reflects market downturn, lower volumes in real estate and customer transactions and the disposal of Credas Technologies Ltd. (" Credas ") in Fiscal 2026.
- Net loss was $11.1 million, compared to a net loss of $38.3 million in Q1 FY2026, primarily reflecting a $26.3 million decrease in finance costs, net, to $19.6 million, as well as lower amortization and lower stock-based compensation expense.
- Adjusted EBITDA (1) was $46.6 million (49.1% of revenue), compared to $50.4 million (46.6% of revenue) in Q1 FY2026.
- Operating costs, comprising of direct costs, technology and operations, general and administrative, and sales and marketing costs, were $48.3 million, a decrease of $9.6 million, or 17%, from Q1 FY2026.
- The Company was in compliance with the financial maintenance covenants under its senior credit agreement as of September 30, 2026.
Consolidated Highlights
Selected key metrics:
Three months ended September 30, | ||
2026 | 2025 | |
$ | $ | |
Revenue | 94,866 | 108,302 |
Net loss | (11,076) | (38,272) |
Cash flow provided by operating activities | 31,316 | 40,217 |
Adjusted EBITDA (1) | 46,559 | 50,435 |
1. | Represents a non-IFRS measure. This measure is not a recognized measure under IFRS, does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. See the "Non-IFRS Measures" section of this press release. |
Conference Call Notification
The Company will hold a conference call to discuss its business on Thursday, November 12, 2026 at 12:00 p.m. ET, hosted by Interim Chief Executive Officer and Chief Operating Officer, Todd Schulte, and Interim Chief Financial Officer, Steve Waszak. A question-and-answer session will follow the corporate update.
DATE: | Thursday, November 12, 2026 |
TIME: | 12:00 p.m. ET |
RAPIDCONNECT: | |
TRADITIONAL DIAL-IN NUMBER (TOLL FREE): | 1-888-699-1199 |
GTA DIAL-IN: | 1-416-945-7677 |
WEBCAST URL: | |
REPLAY AVAILABLE UNTIL: | Thursday, November 19 |
TAPED REPLAY (TOLL FREE): | 1-888-660-6345 |
REPLAY CODE: | 97101 # |
Please dial-in at least five minutes before the call begins.
About Dye & Durham Limited
Dye & Durham Limited provides premier practice management solutions empowering legal professionals every day, delivers vital data insights to support critical corporate transactions and enables the essential payments infrastructure trusted by government and financial institutions. The Company has operations in Canada, the United Kingdom, Ireland, Australia, and South Africa.
Additional information can be found at www.dyedurham.com .
Non-IFRS Measures
This press release makes reference to Adjusted EBITDA, Adjusted EBITDA margin and Segment Adjusted EBITDA, which are non-IFRS measures. These measures are not recognized measures under IFRS, do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective and to discuss Dye & Durham's financial outlook. The Company's definitions of non-IFRS measures may not be the same as the definitions for such measures used by other companies in their reporting. Non-IFRS measures have limitations as analytical tools. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of Dye & Durham's financial information reported under IFRS.
The Company uses non-IFRS financial measures, namely, "Adjusted EBITDA", "Adjusted EBITDA margin" and "Segment Adjusted EBITDA", to provide investors with supplemental measures of its operating performance and to eliminate items that have less bearing on operating performance or operating conditions and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. Specifically, the Company believes that the aforementioned non-IFRS financial measures, when viewed with the Company's results under IFRS and the accompanying reconciliations, provide useful information about the Company's business without regard to potential distortions. By eliminating potential differences in results of operations between periods caused by factors such as depreciation and amortization methods and acquisition, restructuring, impairment, gain on disposal of subsidiary and other charges such as acquisition and reorganization related expenses, integration expenses and corporate cost allocations, the Company believes that the non-IFRS financial measures included herein can provide a useful additional basis for comparing the current performance of the underlying operations being evaluated.
The Company believes that securities analysts, investors, and other interested parties frequently use non-IFRS financial measures in the evaluation of issuers. The Company's management also uses non-IFRS financial measures in order to facilitate operating performance comparisons from period to period. Please see "Cautionary Note Regarding Non-IFRS Measures" and "Select Information and Reconciliation of Non-IFRS Measures" in the Company's most recent Management's Discussion and Analysis, which is available on the Company's profile on SEDAR+ at www.sedarplus.ca , for further details, including reconciliations of Adjusted EBITDA and Segment Adjusted EBITDA to their most directly comparable IFRS measures, which information is incorporated by reference herein.
Below are the Company's definitions of the non-IFRS measures used herein:
"Adjusted EBITDA" adjusts net loss by adding back finance costs, amortization, depreciation and impairment costs, income tax expense (recovery), gain on disposal of subsidiary, stock-based compensation expense (recovery), and loss (gain) on contingent receivables, specific transaction-related expenses related to acquisition and reorganization related expenses, integration and operational restructuring costs, and other non-recurring expenses. Operational restructuring costs are incurred as a direct or indirect result of acquisition activities.
"Adjusted EBITDA margin" is Adjusted EBITDA divided by revenue.
"Segment Adjusted EBITDA" is Adjusted EBITDA as defined above and adds back corporate cost allocations. "Segment Adjusted EBITDA" is representative of "Segment (loss) income" noted in the Segment Information footnote of the Financial Statements. "Segment (loss) income after allocated costs" adjusts the "Segment income (loss)" by deducting the corporate cost allocations.
Forward-looking Statements
This press release may contain forward-looking information and forward-looking statements within the meaning of applicable securities laws, which reflects the Company's current expectations regarding future events. All information that is not clearly historical in nature may constitute forward-looking statements. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements.
Forward-looking statements are not historical facts, nor guarantees or assurances of future performance but instead represent management's current beliefs, expectations, estimates and projections regarding future events and operating performance. The forward-looking information is based on management's opinions, estimates and assumptions. While these opinions, estimates and assumptions are considered by Dye & Durham to be appropriate and reasonable in the circumstances as of the date of this press release, they are subject to a number of risks and uncertainties, many of which are beyond Dye & Durham's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to those risk factors discussed in greater detail under the "Risk Factors" section of the Company's most recent annual information form and under the heading "Risks and Uncertainties" in the Company's most recent Management's Discussion and Analysis, which are available under Dye & Durham's profile on SEDAR+ at www.sedarplus.ca . If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information.
There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents Dye & Durham's expectations as of the date specified herein and are subject to change after such date. The Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information or to publicly announce the results of any revisions to any of those statements for any reason, except as required under applicable securities laws. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.
Consolidated Results of Operations
(Expressed in thousands of Canadian dollars and thousands of shares, except per share amounts)
Three months ended September 30, | ||
2026 | 2025 | |
$ | $ | |
Revenue | 94,866 | 108,302 |
Expenses | ||
Direct costs | (7,957) | (9,846) |
Technology and operations | (24,266) | (30,295) |
General and administrative | (11,246) | (12,093) |
Sales and marketing | (4,838) | (5,633) |
Stock-based compensation expense | (110) | (2,766) |
Finance costs, net | (19,559) | (45,885) |
Amortization and depreciation | (31,987) | (33,627) |
Acquisition, restructuring and other costs | (6,827) | (6,730) |
Loss before income taxes | (11,924) | (38,573) |
Income tax recovery | 848 | 301 |
Net loss | (11,076) | (38,272) |
Net loss attributable to: | ||
Non-controlling interests | (211) | (254) |
Shareholders | (10,865) | (38,018) |
(11,076) | (38,272) | |
Net loss per common share | ||
Basic | (0.16) | (0.57) |
Diluted | (0.16) | (0.57) |
Weighted average number of shares outstanding | ||
Basic | 67,182 | 67,171 |
Diluted | 67,182 | 67,171 |
Adjusted EBITDA
(Expressed in thousands of Canadian dollars)
Three months ended September 30, | ||
2026 | 2025 | |
$ | $ | |
Loss for the period | (11,076) | (38,272) |
Amortization and depreciation | 31,987 | 33,627 |
Finance costs, net | 19,559 | 45,885 |
Income tax recovery | (848) | (301) |
Stock-based compensation expense | 110 | 2,766 |
Acquisition, restructuring and other costs | 6,827 | 6,730 |
Adjusted EBITDA | 46,559 | 50,435 |
1 | Depreciation and amortization expense is primarily related to acquired and developed intangible assets, depreciation expense on property, equipment, and right-of-use assets. |
2 | Finance costs are primarily related to interest expenses incurred on borrowings, changes in fair value of convertible debt and derivatives, lease obligations, net of interest income. |
3 | Stock-based compensation represents expenditures recognized in connection with stock options issued to employees and directors and cash-settled RSUs and DSUs issued to directors. |
4 | Acquisition, restructuring, and other costs primarily relate to the following: acquisition and divestiture expenses, including changes to contingent consideration and holdbacks, employee related restructuring and transformation expenses. |
5 | Represents a non-IFRS measure. See "Non-IFRS Measures". |
Condensed Consolidated Interim Statements of Financial Position (Unaudited)
(Expressed in thousands of Canadian dollars)
September 30, | June 30, | ||
2026 | 2026 | ||
$ | $ | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | 88,951 | 41,432 | |
Trade and other receivables | 68,431 | 71,021 | |
Prepaid expenses and other assets | 12,684 | 10,226 | |
Derivative assets, current | 14,406 | 13,981 | |
184,472 | 136,660 | ||
Non-current assets: | |||
Derivative assets | 11,493 | 7,606 | |
Other assets | 3,910 | 4,289 | |
Property and equipment, net | 5,728 | 6,305 | |
Right-of-use assets, net | 10,478 | 10,241 | |
Intangible assets, net | 540,764 | 568,856 | |
Goodwill | 1,062,401 | 1,061,531 | |
Total assets | 1,819,246 | 1,795,488 | |
Liabilities and equity | |||
Current liabilities: | |||
Accounts payable and accrued liabilities | 81,433 | 87,976 | |
Customer advances | 16,219 | 18,374 | |
Holdbacks and contingent consideration on acquisitions, current | 24,172 | 30,132 | |
Lease liabilities, current | 4,620 | 4,868 | |
Loans and borrowings, current | 27,108 | 12,435 | |
Convertible debentures | 101,330 | 104,396 | |
254,882 | 258,181 | ||
Non-current liabilities: | |||
Lease liabilities | 9,078 | 8,895 | |
Loans and borrowings | 1,194,785 | 1,167,014 | |
Deferred tax liabilities | 77,526 | 78,971 | |
Other liabilities | 1,870 | 2,033 | |
Total liabilities | 1,538,141 | 1,515,094 | |
Equity | |||
Capital stock | 824,205 | 824,205 | |
Contributed surplus | 54,367 | 53,461 | |
Accumulated other comprehensive income | 64,777 | 53,896 | |
Deficit | (662,547) | (651,682) | |
Non-controlling interests | 303 | 514 | |
281,105 | 280,394 | ||
Total liabilities and equity | 1,819,246 | 1,795,488 | |
Contingencies and commitments |
Segment Results
(Expressed in thousands of Canadian dollars)
Three months ended September 30, 2026
Canada | UK & Ireland | Australia | South Africa | Total | |
$ | $ | $ | $ | $ | |
Three months ended September 30, 2026 | |||||
Revenue | 56,293 | 21,022 | 17,148 | 403 | 94,866 |
Income (Loss) before taxes | (7,210) | (5,642) | 2,310 | (1,382) | (11,924) |
Finance costs, net | 15,259 | 3,263 | 961 | 76 | 19,559 |
Stock-based compensation expense | 110 | — | — | — | 110 |
Amortization and depreciation | 19,891 | 7,850 | 3,917 | 329 | 31,987 |
Acquisition, restructuring, and other costs | 5,981 | 659 | 187 | — | 6,827 |
Corporate cost allocation | (3,110) | 2,335 | 1,381 | (606) | — |
Segment Adjusted EBITDA (1) | 30,921 | 8,465 | 8,756 | (1,583) | 46,559 |
Three months ended September 30, 2025
Canada | UK & Ireland | Australia | South Africa | Total | |
$ | $ | $ | $ | $ | |
Three months ended September 30, 2025 | |||||
Revenue | 62,228 | 27,333 | 17,666 | 1,075 | 108,302 |
Income (Loss) before taxes | (30,313) | (8,598) | 2,235 | (1,897) | (38,573) |
Finance costs, net | 41,553 | 4,357 | 58 | (83) | 45,885 |
Stock-based compensation expense | 2,766 | — | — | — | 2,766 |
Amortization and depreciation | 21,108 | 9,660 | 2,041 | 818 | 33,627 |
Acquisition, restructuring, and other costs | 4,499 | 1,119 | 1,112 | — | 6,730 |
Corporate cost allocation | (4,533) | 2,309 | 2,051 | 173 | — |
Segment Adjusted EBITDA (1) | 35,080 | 8,847 | 7,497 | (989) | 50,435 |
(1) | Represents a non-IFRS measure. See "Non-IFRS Measures". |
The method used for the allocation of corporate costs to segments is based on the level of consumption when determinable and measurable, otherwise the allocation is based on a proportion of a relevant driver, such as segment revenue.
Summary of Quarterly Results
(Expressed in thousands of Canadian dollars except per share data)
Quarterly results | Q1 2027 | Q4 2026 | Q3 2026 | Q2 2026 |
(Expressed in thousands of Canadian dollars except per share data) | $ | $ | $ | $ |
Revenue | 94,866 | 104,171 | 91,180 | 107,024 |
Net income (loss) (1) | (11,076) | (19,862) | 41,406 | (21,790) |
Adjusted EBITDA (2) | 46,559 | 55,099 | 42,867 | 50,352 |
Net income/ (loss) per common share | (0.16) | (0.30) | 0.62 | (0.32) |
Net income /(loss) per diluted share | (0.16) | (0.30) | 0.62 | (0.32) |
Quarterly results | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 |
(Expressed in thousands of Canadian dollars except per share data) | $ | $ | $ | |
Revenue | 108,302 | 105,173 | 103,420 | 115,746 |
Net loss (1) | (38,272) | (29,552) | (23,449) | (19,664) |
Adjusted EBITDA (2) | 50,435 | 47,744 | 52,862 | 64,652 |
Net loss per common share | (0.57) | (0.44) | (0.35) | (0.30) |
Net loss per diluted share | (0.57) | (0.44) | (0.35) | (0.30) |
(1) | Includes income tax expense / (recovery). |
(2) | Represents a non-IFRS measure. See "Non-IFRS Measures". |
SOURCE Dye & Durham Limited
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