Q2 2026 BuildDirect.com Technologies Inc Earnings Call Transcript
Key Points
- Revenue increased 16% year-over-year to $19.7 million, with a 34% sequential growth in Q2.
- Adjusted EBITDA turned positive at $0.39 million, swinging from a negative $0.34 million in Q1.
- Gross margin remained strong at 39.2%, with e-commerce segment margin at 48.3%.
- Acquisitions (Greyne and TOA) were accretive, with TOA acquired at a bargain price ($0.78 per dollar of net assets) and Greyne adding new channels.
- Operating cash flow was positive at $0.45 million, and the company has a clear acquisition pipeline targeting $20-40 million companies.
- Same-store revenue declined approximately 4% overall, with e-commerce down 12% and Pro Centers down 2% excluding acquisitions.
- Net loss of $0.19 million was reported, though narrowed from the prior quarter.
- Cash decreased to $4.1 million from $8.2 million at year-end, with revolving credit facility drawn to $4.8 million.
- Gross margin declined 70 basis points year-over-year due to acquisition mix.
- Soft demand in the flooring industry persists, with new home construction and housing turnover weak, impacting organic growth.
Good afternoon, everyone, and thank you for joining us. Welcome to BuildDirect Technologies' second-quarter 2026 financial results conference call. My name is Bob Chan, and I'll be moderating today's call. On the call today are Shawn Wilson, Chief Executive Officer; Kerry Biggs, Chief Financial Officer; and Jay Allen, President, Digital and Commercial.
Before we begin, I would like to remind everyone that today's presentation contains forward-looking statements within the meaning of applicable Canadian securities laws, including statements regarding the company's growth strategies, acquisition plans, integration objectives, margin targets, and business outlook. These statements based on management's current expectations and assumptions are subject to known and unknown risks and uncertainties that could cause actual results to differ materially. Please refer to advisories on slide 2 of today's presentation and to the risk factors described in the company's continuous disclosure filings available on SEDAR+. The company undertakes no obligation to update forward-looking statements, except as required
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