Q1 2027 Avante Corp Earnings Call Transcript
Key Points
- Revenue increased 14% year-over-year to $10 million in fiscal Q1 2027.
- Adjusted EBITDA surged 128% to $818,000, with margins expanding to 8%.
- Gross margin improved significantly by 700 basis points to 44.9%, driven by higher-margin segments like Avante Black and NSSG.
- Recurring revenue grew 7% to $4.3 million, with a strong 98% client retention rate.
- MAST deployments are expanding rapidly, with over 30 units deployed and a sales pipeline of over 100 units across multiple industries and geographies.
- Avante Black, now over 10% of total revenue, delivered adjusted EBITDA margins exceeding 25%, contributing to overall profitability.
- The company maintains a strong balance sheet with $6.8 million in cash, no debt, and a $12 million undrawn credit line for future M&A.
- Recurring revenue declined slightly on a sequential basis due to the expiration of several shorter-term international contracts at NSSG.
- The company did not provide specific financial targets for fiscal 2027, citing a culture of exceeding previous performance rather than setting formal goals.
- MAST deployment with Target Park is progressing slower than expected, with only two units being deployed next week and a focus on doing it right rather than rapid scaling.
- The franchising initiative for the core business is moving slower than anticipated due to time constraints, not lack of interest.
- Gross margin in Q1 was higher than expected, but the company only guides to a range for the year, suggesting potential volatility in quarterly margins.
- The company's growth is partly dependent on international opportunities, which carry risks such as geopolitical instability and contract renewals, as seen with NSSG's contract expirations.
Thank you, everyone, for joining us today, and welcome to Avante's fiscal first-quarter investor webinar covering the three months ended June 30, 2026. My name is [Rajan Sohal], and I will be the moderator for today's call. Joining me on the call today are Emmanuel Mounouchos, Founder and CEO of Avante; and Raj Kapoor, the company's CFO. This call is being recorded. (Operator Instructions)
I trust that everyone has received a copy of our financial results press release that was issued earlier today. Listeners are also encouraged to download a copy of our interim financial statements and management discussion and analysis from sedarplus.ca.
Please note, portions of today's call, other than historical performance, include statements of forward-looking information within the meaning of applicable securities laws. These statements are made under the Safe Harbor provisions of those laws. Forward-looking statements that are based on management's current views and assumptions and that this discussion is qualified in its entirety by the cautionary note regarding forward
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