BOARDWALKTECH REPORTS THIRD QUARTER FISCAL 2026 FINANCIAL RESULTS

Core Insights - Boardwalktech Software Corp. reported its financial results for Q3 Fiscal 2026, showing improvements in net loss and operational efficiency while facing a decline in revenue compared to the previous year [1] Financial Highlights - Outstanding debt as of December 31, 2025, was $2.5 million, drawn against a $4 million line of credit, reclassified under current liabilities due to IFRS requirements [1] - Cash at the end of Q3-FY26 was $0.1 million, with accounts receivables of $0.4 million; cash burn from operations decreased by $0.9 million year-over-year to $33,000 per month [1] - Non-IFRS net loss for Q3-FY26 was $(0.3) million, an improvement from $(0.4) million in Q2-FY26 and Q3-FY25 [1] - Net loss for Q3-FY26 was $(0.4) million, compared to $(0.5) million in Q2-FY26 and $(0.6) million in Q3-FY25, reflecting an 18% sequential improvement [1] - Total SG&A expenses in Q3-FY26 were $1.1 million, down from $1.2 million in Q2-FY26 and $1.4 million in Q3-FY25 [1] - Adjusted EBITDA for Q3-FY26 was a loss of $(0.2) million, a 35% improvement from Q2-FY26 [1] - Gross margin for Q3-FY26 was 86.9%, slightly up from 86.7% in Q2-FY26 but down from 88.4% in Q3-FY25 [1] - Annual Recurring Revenue (ARR) at December 31, 2025, was $3.8 million, based on trailing quarterly revenue from license subscriptions and recurring services [1] - Revenues for Q3-FY26 totaled $1 million, unchanged from Q2-FY26 but down 25% from $1.3 million in Q3-FY25 due to non-renewals [1] Operational Highlights - The company announced contract renewals and expansions on November 4, 2025, increasing recurring revenue from major enterprise customers [1] - On January 20, 2026, Boardwalktech launched Boardwalk Verity™, an Intelligent Controls Platform aimed at highly regulated organizations [1] - On January 6, 2026, the company expanded its contract with a global IT services firm to support a top-five U.S. financial institution [1] Management Commentary - The CEO noted that existing customers are expanding deployments, and new opportunities are expected to drive professional services revenue and increase high-margin ARR [1] - The launch of Verity and enhancements to Velocity are anticipated to improve revenue growth and move towards Adjusted EBITDA breakeven [1]