Financial Data and Key Metrics Changes - The company reported revenue of $10.5 million in Q3 2025, down from $14.4 million in the same period last year, with gross profit decreasing to $4.8 million from $6.6 million in 2024 [5][6] - Adjusted EBITDA for the third quarter was $0.8 million compared to $2.3 million last year [7] - The annual recurring run rate (ARR) was $12.3 million, down from $18.1 million at the end of Q3 2024 [6] Business Line Data and Key Metrics Changes - The acquisition of Cineplex Digital Media (CDM) is expected to significantly enhance the company's scale and growth trajectory, with CDM generating approximately CAD 56 million in revenue in 2024 and projected to achieve 25% year-over-year growth in 2025 [7][8] - The consolidated gross margin for Q3 was 45%, consistent with the previous year's 46% [6] Market Data and Key Metrics Changes - CDM operates in over 6,000 locations with approximately 30,000 endpoints, serving major brands such as Scotiabank and Tim Hortons, and is expected to generate over CAD 32 million in advertising sales revenue this year [8][9] - The company anticipates total revenue to exceed $100 million in 2026, with adjusted EBITDA margins in the high teens [11] Company Strategy and Development Direction - The acquisition of CDM is viewed as a transformational move that will double the size of the company and enhance its competitive position in North America [4][7] - The company plans to reorganize its sales force and go-to-market strategy to improve customer acquisition velocity and grow recurring revenue [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong pipeline of opportunities and the potential for significant engagements that will reward shareholders [6][12] - The company expects to realize at least $10 million in annualized synergies from the CDM acquisition by the end of 2026, reflecting operational efficiencies and margin enhancements [11][12] Other Important Information - The company financed the CDM acquisition through a combination of debt and preferred equity, resulting in a total debt of $39.9 million as of November 7, 2025 [18] - The board was expanded from four to seven members, adding three new directors to support the next phase of expansion [12] Q&A Session Summary Question: Feedback from customers and partners post-CDM acquisition - Management reported positive feedback from customers, acknowledging the increased scale and capabilities resulting from the acquisition [21] Question: Go-to-market strategy in Canada - The strategy involves leveraging existing CDM customers and targeting Canadian QSRs that have not yet gone digital [22] Question: Retail media opportunity with CDM - The acquisition enhances the company's credibility and capabilities in the retail media market, with expectations of increased traction [23] Question: State lottery pipeline and RFPs - Management indicated a robust opportunity in the lottery sector, with a significant contract already in place and more RFPs expected [25] Question: Growth in stadium business - The stadium vertical is expected to grow significantly, with projections of a 30-40% increase in 2026 [26] Question: Role of the new Chief Revenue Officer - The new Chief Revenue Officer is expected to enhance customer acquisition and conversion rates, addressing previous challenges in this area [30] Question: Content creation team impact - The expanded content creation team is expected to drive growth in the content business, with a target of reaching $10 million in revenue over the next 24 months [32]