Zedcor Inc (TSXV:ZDC)

Q2 2026 Zedcor Inc Earnings Call Transcript

Aug 13, 2026 / 12:00 PM GMT

Release Date Price: C$5.31 (-1.67%)

Transcript

Key Points

Positve

Record quarterly revenue of $22.7 million, up 68% year-over-year, driven by higher tower count and US expansion.
Record adjusted EBITDA of $8.8 million, up 77% year-over-year, with margin expansion to 39% from 36%.
Deployed over 600 solar towers in Q2, up from 475 in Q1 and 316 in Q2 2025, with production capacity at 45-50 towers per week.
US operations generated more revenue in H1 2026 ($21.9 million) than the full fiscal year 2025 ($21.1 million), with US fleet growing 180% year-over-year.
Customer count eclipsed 1,000 during the quarter, with over 500 in the US, diversifying the customer base and reducing concentration risk.
Strong liquidity position with $3 million cash and $25.3 million undrawn credit facility, and net debt to adjusted EBITDA at a conservative 1.6 times.
Adjusted free cash flow before non-cash working capital impacts increased 72% year-over-year to $7.6 million in Q2.
Renewed a three-year contract with a large Canadian retailer, demonstrating strong customer retention and service quality.
Deployed direct-to-dispatch and license plate recognition capabilities across the entire fleet, becoming the first in the industry to do so.
Canada operations rebounded strongly in Q2, with a 'light switch turned back on' and strong demand, contributing to overall growth.

Negative

Gross profit margin decreased to 59% from 63% year-over-year, due to increased depreciation, hiring, and training costs for US expansion.
CapEx was high at $28.7 million in Q2, reflecting significant investment in fleet growth, which may pressure near-term cash flows.
Adjusted EBITDA per share growth was partially offset by a higher share count due to completed equity financings, diluting per-share metrics.
Utilization rates are above the preferred 85-90% range, which could limit flexibility to quickly deploy towers for new large opportunities.
Enterprise retail clients are slow to ramp up, with a 'long process' and slower decision-making, potentially delaying revenue contributions.
The company made a $2 million direct investment in a software development partner, which may carry execution and integration risks.
US operations still have lower margins compared to Canada, though the goal is to reach Canadian levels, indicating ongoing inefficiencies.
The company's growth is heavily reliant on continued expansion in the US, which may face competitive or regulatory challenges.
The transcript mentions 'no bottlenecks' and stable pricing, but any future supply chain disruptions could impact production capacity.
The company's forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from projections.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ZDC.V - Zedcor Inc
Q2 2026 Zedcor Inc Earnings Call
Aug 13, 2026 / 12:00PM GMT

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Presentation
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Unidentified_1 [1]
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Thank you for standing by.

My name is Joe Diaz and I'll be the conference call operator. Welcome to the Zachary Inc. Second Quarter 2026 Financial Results Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded.

We'll be having a Q&A session at the end of the call and questions will be limited to analysts only.

We would now like to turn the conference over to Anil Lara, Chief Financial Officer. Please go ahead.

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Unidentified_2 [2]
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Thank you, Joe. Good morning, everyone, and thank

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