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]

Summary of Boardwalktech Software Conference Call Company Overview - **Company Name**: Boardwalktech Software Corporation - **Ticker Symbols**: BWLK (TSX Venture Exchange), BWLKF (OTCQB) - **Headquarters**: Silicon Valley, with an office in Mumbai, India - **Focus**: AI data management and information intelligence, utilizing patented Digital Ledger Technology - **Revenue**: Approximately $4.5 million trailing 12-month revenue, with $4.1 million in Annual Recurring Revenue (ARR) [3][29] Core Products - **Boardwalk Velocity**: Automates Microsoft Excel processes, enhancing data management and collaboration [5][14] - **Unity Central**: Manages unstructured data, integrating various information sources into a coherent AI-ready environment [5][15] - **Boardwalk Secure Communicator**: A new security product aimed at enhancing data security and reducing password-related issues [6][19] Market Dynamics - **AI Growth**: Significant investments in AI infrastructure by major companies (Google: $100 billion, Meta: $70 billion, AWS: $80 billion) [9][10] - **Data Explosion**: 90% of the world's data was created in the last two years, highlighting the need for effective data management solutions [8] - **Digital Transformation Challenges**: 70% of digital transformation initiatives fail, and 83% of supply chain executives do not see value from their data investments [9] Customer Base - **Fortune 500 Clients**: Over 20 Fortune 500 companies, including Citibank, Levi Strauss & Co., Accenture, and Apple [3][4] - **Long-term Relationships**: Many customers have been with Boardwalktech for 10-12 years, indicating strong product satisfaction and retention [4][28] Use Cases and Case Studies - **Banking Sector**: Implementation of Velocity product to improve risk management in End User Computing environments, addressing compliance issues [21][22] - **ON Semiconductor**: Reduced response time for RFPs/RFQs from seven days to two or three days, resulting in a 15-20% increase in sales and a $1.8 million ROI [24] - **Cosmetics Company**: Streamlined order management process, reducing fulfillment time from 21 days to 14 days and workforce from 70 to 32 employees [25] Financial Highlights - **Recurring Revenue Growth**: 30% CAGR over the last three years, with 86% of revenue from multi-year annual recurring renewals [27][28] - **EBITDA Improvement**: Adjusted EBITDA improved by 26%, with a goal to reach EBITDA profitability [29] Strategic Goals for 2026 - Enhance AI integration across products - Expand deals in financial services and enterprise markets, focusing on supply chain operations - Introduce new security products and achieve EBITDA break-even [26][27] Investment Proposition - High retention SaaS model with proven customer satisfaction - Strong pipeline of active deals valued at $6 million - Opportunity to capitalize on the growing AI market and expand partner channels [28][29]