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DATA Communications Management Corp. Reports Q3 2025 Financial Results
Newsfileยท 2025-11-11 22:35
Core Insights - DATA Communications Management Corp. (DCM) reported a 3.1% year-over-year decline in revenues for Q3 2025, attributed to clients delaying or scaling back projects due to market uncertainty and external factors such as tariffs and labor disruptions at Canada Post [3][4] - The company continues to generate strong free cash flow, allowing for debt reduction and capital return to shareholders, while maintaining a focus on new business development and digital innovation [3][4] Financial Performance - Revenues for Q3 2025 were $105.4 million compared to $108.7 million in Q3 2024 [7] - Adjusted EBITDA was $12.3 million, representing 11.7% of revenue, slightly up from 11.6% in Q3 2024 [7][12] - SG&A expenses decreased to $18.2 million from $21.3 million in the prior year quarter [7][12] - Net income for the period was $1.1 million, compared to a net loss of $2.7 million in Q3 2024 [12][28] Strategic Initiatives - DCM is focused on four strategic priorities for 2025, including driving profitable organic growth and enhancing operational efficiency [8] - The company launched contentcloud.ai, an AI-powered Digital Asset Management platform, to advance its digital strategy [7][9] - DCM achieved a sustainability milestone by planting three million trees through a partnership with PrintReleaf, offsetting 100% of the paper consumed for client printing needs [6] Dividend and Shareholder Returns - The board declared a quarterly dividend of $0.025 per common share, payable on December 31, 2025, to shareholders of record by December 17, 2025 [5][7] - The company repurchased 264,900 common shares during the third quarter [7]