Canada's Dye & Durham Q2 revenue falls 8% on market downturn, lower volumes

Overview

• Canada legal software provider's fiscal Q2 revenue declined 8%, missing analyst expectations

• Company reported fiscal Q2 net loss of $21.8 mln

• Adjusted EBITDA for fiscal Q2 decreased 22% yr/yr

Outlook

• Company defers dividend decision pending strategic plan review by March 31, 2026

• Dye & Durham faces near-term headwinds in Legal Software Business

• Company positioned for long-term growth despite current challenges

Result Drivers

• MARKET DOWNTURN - Revenue decline driven by market downturn and lower volumes and pricing, particularly in legal software

• BANKING TECHNOLOGY GROWTH - Growth in Banking Technology and Affinity partially offset revenue decline

• CASH FLOW IMPROVEMENT - Improved cash flow from operations due to lower financing costs and better working capital

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Dye & Durham Ltd is C$5.75, about 54.2% above its February 13 closing price of C$3.73

Press Release: ID:nCNW7P5Cca

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