Canada's Zoomd Technologies Q4 revenue falls 50% on customer losses

Overview

• Canada marketing tech firm's Q4 revenue fell 50% yr/yr due to reduced activity from two major customers

• Adjusted EBITDA and net income declined sharply on lower revenue and gross margin

• Company says broader portfolio excluding two customers grew 30% in Q4

Outlook

• Company says visibility remains limited with one major customer, while another shows early realignment

• Zoomd is evaluating selective M&A opportunities with a growing pipeline of preliminary discussions

• Company considering a Normal Course Issuer Bid, with an update expected after Q1 2026 results

Result Drivers

• MAJOR CUSTOMER CHANGES - Co said Q4 revenue drop was due to reduced activity from two large customers making changes to their operating models and acquisition strategies

• CUSTOMER MIX - Gross margin decline in Q4 attributed to changes in customer mix, per co

• COST MANAGEMENT - Operating expenses fell 7% in Q4 due to lower activity and disciplined cost management

Company press release: ID:nPn5GpM5Na

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the advertising & marketing peer group is "buy"

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 12 three months ago

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