Canada · Delayed Price · Currency is CAD Pivotree Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw accelerated adoption of AI-enabled services, driving improved margins and a record pipeline build. Revenue was CAD 12.6 million, with 22% AI-enabled, and cash reserves reached CAD 13 million. The company expects most services to be AI-driven by year-end.
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Q1 2026 saw strong profitability and cash growth amid a strategic shift to AI-enabled services, with MIPS revenue up 8% year-over-year and gross margin reaching a three-year high. The company is prioritizing long-term, recurring revenue and expects continued transformation-driven volatility.
Fiscal Year 2025
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Delivered strong cash flow and margin expansion in 2025, driven by AI-enabled MIPS growth and operational discipline. Revenue declined due to legacy service contraction, but new logo wins and automation gains position the business for future growth.
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Q3 2025 saw positive EBITDA for the fourth straight quarter and improved gross margins, despite an 18% year-over-year revenue decline driven by legacy business runoff. AI and automation are central to growth strategy, with strong new logo wins and investments in agentic solutions supporting future momentum.
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Adjusted EBITDA reached $1.7 million (10% margin) despite a 15% year-over-year revenue decline, driven by strong bookings in MIPS and PS and improved sales efficiency. Net income rose to $2.5 million, aided by a $2.3 million asset sale gain.
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Q1 saw sequential revenue and EBITDA growth, with strong MIPS bookings and positive net income. The WMS divestiture improved strategic focus and cash position, while tariff impacts remain limited. Data and automation solutions are driving pipeline growth.
Fiscal Year 2024
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Record Q4 adjusted EBITDA of CAD 1.7 million was achieved through cost reductions and operational efficiencies, despite a 13% year-over-year revenue decline driven by legacy managed services. Growth in MIPS bookings and new product initiatives provide positive outlook for 2025.
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Q3 revenue declined 11% year-over-year due to Legacy Managed Services, but cost savings and a strong sales pipeline position the business for improved margins and cash flow in 2025. Bookings and new logo pipeline showed strong growth, with B2B digital transformation driving future opportunities.
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Q2 revenue declined 11% year-over-year to CAD 20.3 million, but MIPS revenue grew over 30% and bookings rose 19% on a rolling four-quarter basis. Gross margin was 44.2%, and adjusted EBITDA remained positive for the seventh consecutive quarter.