Zedcor Inc (OTCPK:ZDCAF)

Q2 2026 Zedcor Inc Earnings Call Transcript

Aug 13, 2026 / 12:00 PM GMT

Release Date Price: $3.85 (+0.84%)

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

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
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.

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

Already have an account? Log in

Get the full story

Subscribe Now

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

7-Day Free Trial · Cancel Anytime

Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Calculators Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App Newsletters Signup 中文

Education

Financial Glossary Tutorials FAQ Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.