Ciscom Reports Q3 2025 Earnings - Positive Operating Cash-Flows

Core Insights - Ciscom Corp. reported Q3 2025 earnings with positive operating cash flows despite sales pressure, achieving cash flows from operating activities of $1.369 million [1][7] - The company experienced a significant decline in sales and gross profit compared to the same period in 2024, with sales dropping to $16.1 million from $25.9 million, a decrease of 37.9% [3] - The net loss for the nine-month period was $0.781 million, compared to a net loss of $0.337 million in 2024, primarily due to one-time non-recurring charges totaling $0.657 million [6] Financial Performance - Sales for the nine months ended September 30, 2025, were $16.1 million, down from $25.9 million in 2024, reflecting a decrease of $9.8 million or 37.9% [3] - Gross profit decreased to $3.8 million from $4.7 million, a reduction of $0.9 million or 20.1% [3] - Cash-based operating expenses were reduced from $3.6 million in 2024 to $2.8 million in 2025, representing a cost reduction of $0.8 million or 21.8% [4] - EBITDA from continuing operations was $0.961 million, down from $1.121 million in the same period in 2024, a decrease of $0.159 million [5] Operational Challenges - The Canada Post Corporation labor dispute disrupted business operations and sales, affecting direct mail distribution and leading to some clients limiting or stopping their activities [2] - A significant client of a Ciscom subsidiary filed for bankruptcy protection, resulting in a loss of revenue and an account receivable impairment charge [2] - The company faced one-time restructuring charges related to workforce downsizing and was impacted by US tariffs, leading to an uncertain economic climate and reduced consumer spending [2] Strategic Initiatives - The company is actively signing new clients and diversifying its product offerings, including the recent launch of the Engage+ digital flyer solution [9] - Management has taken steps to restructure the cost base in response to the challenges faced in 2025 [8]