Canada's Pivotree Q4 revenue falls on wind-down of legacy services

Overview

• Canada frictionless commerce firm's Q4 revenue fell 18% yr/yr as legacy services declined

• Company posted C$0.5 mln net income, turning profitable from a loss a year earlier

• Adjusted EBITDA for Q4 was C$1.2 mln, down from C$1.7 mln in Q4 2024

Outlook

• Pivotree says 2026 strategy shifts to accelerating growth through agentic commerce and AI automation

Result Drivers

• LEGACY SERVICES DECLINE - Co attributed revenue drop to planned wind-down of legacy managed services and churn among Oracle customers

• MIPS GROWTH - Managed and IP Solutions revenue rose 22% yr/yr, driven by expansion of transactional SKUs

• GROSS MARGIN IMPROVEMENT - Gross margin increased to 46% of revenue, attributed to efficiencies in producing transactional SKUs and stronger MIPS & LMS combined margins

Company press release: ID:nACSz4Znda

Key Details

Analyst Coverage

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

• The average consensus recommendation for the it services & consulting peer group is "buy."

• Wall Street's median 12-month price target for Pivotree Inc is C$2.50, about 47.1% above its March 25 closing price of C$1.70

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.