Q2 2026 Intouch Insight Ltd Earnings Call Transcript
Key Points
- Revenue grew 8% year-over-year to $7 million, the strongest quarterly growth in seven quarters, driven by organic growth across all major product lines.
- SaaS revenue increased 18% year-over-year, supported by new business, client expansions, and favorable foreign exchange, indicating healthy software demand.
- The company secured an additional merchandising customer and has contracted Q3 work exceeding the combined revenue of the first half, supporting the $1 million full-year target.
- Management maintains a disciplined capital approach, funding strategic investments without issuing new shares, preserving shareholder value.
- The company's thought leadership initiatives, such as the convenience industry study with nearly 3,000 site visits, enhance brand credibility and open doors with key industry executives.
- Net loss of $43,136 in Q2, essentially breakeven, with adjusted EBITDA down to $227,559 from $370,812 a year ago, reflecting increased investment costs.
- Gross margin declined to 46.7% from 50.4% due to product mix, including lower-margin merchandising, and gross profit dollars remained flat despite revenue growth.
- Merchandising revenue was only $120,000 in the first half, significantly below the $1 million target, indicating slower-than-expected ramp-up.
- Operating cash flow was negative $598,857 year-to-date, driven by a 28% increase in receivables, though management attributes this to collection timing.
- The company faces a steep hill to achieve double-digit revenue growth for the full year, requiring back-half growth above 13%, with risks from client attrition and slower SaaS growth.
Good morning, and welcome to the Intouch Insight Second Quarter 2026 Earnings Conference Call. (Operator Instructions) Joining me today is Cameron Watt, President and Chief Executive Officer; and Cathy Smith, Chief Financial Officer.
Before we begin, I'd like to remind you that our remarks today contain forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially from those anticipated. Please refer to our regulatory filings for a full discussion of the risks and uncertainties that could affect our results.
During this call, we will also discuss certain non-IFRS financial measures, including adjusted EBITDA. Reconciliations of these non-IFRS measures to the most comparable IFRS measures are included in our MD&A, which is available on SEDAR+.
With that, I will turn the call over to Cameron Watt.
Thank you, James, and thank you all for joining us today. Last quarter, I told you that 2026 would be a year of deliberate
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