Thank you, everyone, for joining us today. Welcome to Avante's fiscal Q4 and year-end 2026 investor webinar, covering the three-months and 12-months ended March 31st, 2026. My name is Rajan Sohal. I will be the moderator for today's call. Joining me on the call today are Emmanuel Mounouchos, founder and CEO of Avante, Raj Kapoor, the company CFO. This call is being recorded. There will be a Q&A session at the end of the call. I trust that everyone has received a copy of our financial results press release that was issued last week. Listeners are also encouraged to download a copy of our annual financial statements and management discussion and analysis from sedarplus.ca. Please note portions of today's call, other than historical performance, include statements of forward-looking information within the meaning of applicable securities laws.
These statements are made under the safe harbor provisions of those laws. Forward-looking statements that are based on management's current views and assumptions, that this discussion is qualified in its entirety by the cautionary note regarding forward-looking statements that is appended to our news release. Please review our press release and Avante's reports filed on SEDAR+ for various factors that could cause actual results to differ materially from the projections. We use terms such as gross profit, gross margin, adjusted EBITDA, RMR on this conference call, which are non-IFRS and non-GAAP measures. For information on how we define these terms, please refer to the definitions set out in our management discussion and analysis. With that, let me turn the call over to Mr. Emmanuel Mounouchos, founder and CEO.
Thank you, Rajan. Welcome, everyone. We truly appreciate everyone joining us today. On today's call, our CFO, Raj Kapoor, will review Q4 and full-year fiscal 2026 results. I will provide a general update and business overview of where the company is today and our positive outlook for the fiscal 2027. Before we get into the fiscal results, I will provide a high-level overview of Avante. Avante is a leading provider of security operatives and technology-enabled security solutions to residential and commercial clients. Avante's mission is to deliver an elevated level of security globally, with white-glove mentality to high-net-worth families and corporations alike. Our platform today spans five core areas: security systems, our advanced burglar alarms, integrated camera systems, Smartboxx dual-factor monitoring backed by our 24/7 professional oversight from our state-of-the-art control center.
Protective services: our full range of physical protection, including highly trained executive security operatives, secure driving, rapid alarm response, mobile patrols. HALO: our AI-powered video analytics platform delivering real-time monitoring, facial recognition, Gun Detection across residential and commercial spaces. Avante Black: our discrete, specialized services delivering worldwide, including secure international travel and transport, complex investigations, covert operations. Homeworxx: our premium home management offering, including vetted trades and maintenance. Avante is headquartered in Toronto, Ontario. We have approximately 201 employees in the company. Today, the security landscape for high-net-worth individuals has become more complex than ever, with rising geopolitical tensions, increasing incidents of targeted crime, growing concerns over personal safety. The need for a sophisticated security solution has never been greater. High-profile individuals are no longer just seeking traditional protection. They require comprehensive, proactive measures that integrate advanced technology with expert oversight.
At Avante, we understand these evolving risks and are committed to providing elite security services that offer not only protection but also peace of mind. I'm pleased to report that during the fiscal 2026, our teams completed over 680,000 patrols, executed over 2,600 secure transports, and responded to just under 28,000 alarm events, maintaining an average response time of 6 minutes or less. On today's call, we will walk through the following topics. First is our Q4 and fully fiscal 2026 financial results, which Raj will discuss in more detail shortly. Second is the innovation at Avante, accelerating our growth. Lastly, our positive outlook for fiscal 2027. I would now like to turn it over to our CFO, Raj Kapoor, who will discuss our financial results for the Q4 and the full year of fiscal 2026.
Thank you, Manny, and welcome, everyone. I am pleased to report another year of growth in revenue and adjusted EBITDA for Avante, capping off a strong Q4 to close out fiscal 2026. For the full fiscal year ended March 31, 2026, Avante achieved revenue of CAD 37.2 million, compared to CAD 33.8 million in fiscal 2025, an increase of 10%. Revenue growth was driven by several divisions, including the company's secure transport division, which experienced an increase of 24% in revenue compared to the previous year. Additionally, NSSG revenue experienced a growth of 67% over the previous year, including an increase in its consulting division of 97%. Adjusted EBITDA for the full fiscal year grew to CAD 2.3 million, compared to CAD 1.8 million in fiscal 2025, an increase of 30%. EBITDA growth was driven by an increase in revenue in our higher-margin businesses and achieving greater operating efficiencies.
Our fiscal 2026 full-year results are as follows: reoccurring monthly revenue, or RMR, of CAD 17.2 million, compared to CAD 13.8 million, an increase of 24%. Gross profit of CAD 15.6 million, compared to CAD 13.3 million, an increase of 17%, driven by revenue growth in the year and improved gross profit margins. Gross margin of 41.8%, compared to 39.3% in fiscal 2025, an improvement of 250 basis points. This full-year performance reflects the continued strength of our reoccurring revenue base, margin discipline, and the growing contribution of our higher-margin service lines. Turning now to our Q4 results for the three-month ended March 31, 2026: Avante achieved revenue of CAD 10.5 million, compared to CAD 9.3 million in Q4 of fiscal 2025, an increase of 12%. Adjusted EBITDA for the quarter was CAD 509,000, compared to CAD 287,000 in Q4 of fiscal 2025, an increase of 77%.
Our fiscal Q4 2026 results are as follows: reoccurring revenue of CAD 4.8 million, compared to CAD 3.5 million, an increase of 35%. Gross profit of CAD 4.7 million, compared to CAD 3.3 million, an increase of 42%. Gross margin of 45.2%, compared to 35.7% in Q4 fiscal 2025, a significant improvement of 950 basis points. The improved profitability in the business. I'd like to take a moment to highlight Avante's consistent growth profile.
On this slide, you'll see our trailing 12-months revenue over the past several quarters. Notably, our TTM revenue has grown sequentially every quarter over this period, highlighting the durability and consistency of our growth trajectory. The company's growth has been driven by the onboarding of new customers through focused sales efforts, enhanced customer support, the launch of new services, and strategic acquisitions such as NSSG. Our business model remains predictable, with a significant portion of our revenue reoccurring in nature.
45% of our revenue in fiscal Q4 came from contracted recurring revenue, providing strong visibility and predictability for future performance. Recurring revenue increased 35% in fiscal Q4 compared to the same period last year. Other revenue in Q4 fiscal 2026 was elevated due to the increase in one-time NSSG engagements tied to heightened geopolitical issues in the Middle East during the quarter. Our client contracts are typically one year in length, and we maintain a 98% client retention and renewal rate, demonstrating the strength of our value proposition. I'm pleased to report that we have maintained the strength of our balance sheet, giving us the flexibility to fund the company's organic growth initiatives. As of March 31, 2026, Avante had CAD 6.2 million in cash and cash equivalents, compared to CAD 4.7 million as of Q4 2025, an increase of 32%.
We have access to a CAD 12 million undrawn line of credit, which we intend to use to support future acquisitions. Our working capital as of March 31, 2026, was CAD 4 million. We remain able to continue funding our growth with cash flow from operations. Overall, the company is operating from a very strong financial position. Revenues are growing, profit margins are increasing. Our cash is improving. I will now turn the call back over to Manny.
Thank you, Raj. I will now discuss how our innovation continues to accelerate growth at Avante. Our company was founded on the principle of combining cutting-edge technology with best-in-class security operatives, and innovation remains at the heart of our strategy. I would like to take a moment to walk through two of our key growth drivers: MAST and NSSG. MAST, our Mobile Automated Surveillance Tower, is an unmanned, solar-powered, wireless communications security tower and has been a significant area of momentum for the business. We are seeing strong early traction across multiple verticals, including construction, parking, telecommunications, law enforcement, retail, events, and oil and gas. We are experiencing a growth pipeline of opportunities as market awareness of MAST increases. Some of our recent wins are listed here on our slides.
We secured a deployment agreement with the Ontario Provincial Police Force for our Gunshot Detection capability to be installed across three high-crime locations, further demonstrating the strength of MAST's expanded threat detection capabilities. We also partnered with Target Park to deploy MAST across their above-ground parking lots in Canada and the U.S. We're selected for the second consecutive year to provide full perimeter security coverage for Cirque du Soleil, Luzia, production in Toronto, and deployed MAST for remote AI video monitoring in Toronto during the FIFA World Cup tournament. On the operational side, our global supply chain is now fully established, enabling us to deliver MAST units to any port of entry worldwide.
We currently have 29 MAST and BOXEE units deployed, and we have 18 additional MAST units now in production on order for delivery within the next four weeks, allowing us to support rising demand and reduce lead times as deployment activity accelerates. We are also building out our sales and customer support capabilities to meet growing demands across the platform. We currently have over an additional 100 units on our sales pipeline. With its sustainable design, networked architecture, and highly flexible deployment model, MAST is well positioned to become a high-growth, recurring revenue contributor to our performance as adoption continues to expand through calendar 2026 and beyond. Turning now to North Star Support Group, or NSSG, our global risk management and crisis response subsidiary. As a reminder, we acquired a 55% stake in NSSG in September of 2023.
NSSG executes strategic advisory and bespoke implementation solutions for international businesses operating in challenging security environments and complex jurisdictions. A key competitive advantage for NSSG is its global footprint. With offices and representation across Europe, the Middle East, North America, and Africa, NSSG is well positioned to leverage its global reach to support multinational clients, including Fortune 500 companies operating in complex and high-risk jurisdictions. Since the acquisition, we've accelerated NSSG's growth by tightly integrating NSSG with Avante's technology platform, combining its deep front-line risk services with our innovation infrastructure, intelligence tools, and advanced security technology. This integration is also allowing us to introduce Avante's technology into two new global markets, including Europe, and is helping our team close large, more complex international contracts, and differentiating us through our technology.
Financially, NSSG delivers 67% revenue growth in the fiscal 2026 compared to 2025, driven by strengthened commercial execution, improved global sales practices, and rising demand for specific risk management services, including 97% growth with its consulting division. NSSG also delivers a 52% gross margin profit margin in the fiscal 2026, underscoring the high-margin nature of its specialized risk management services. I will now conclude this call with some comments on our positive outlook for fiscal 2027. As we look ahead to fiscal 2027, our priorities are as follows: increase recurring revenues by developing and scaling our HALO and MAST deployments across new verticals; improve consolidation adjusted EBITDA margins driven by an increase in higher-margin service lines and greater operating efficiencies; take advantage of our consolidated opportunities within the fragmented security services industry through disciplined M&A; and to continue to expand NSSG international secure transportation investigations and consulting revenue.
We expect growth across NSSG, HALO, MAST, and Avante Black in the fiscal year ahead, and we remain focused on driving organic growth across the businesses. We also see meaningful opportunities to expand our service offerings to customers in new industries. We believe we have laid an excellent foundation for the company and the positive outlook for fiscal 2027. Meanwhile, we are actively seeking new opportunities to expand and enhance our services through acquisitions. Finally, I want to thank the entire team at Avante, including the employees whose hard work elevates the company to higher levels. We want to thank our customers around the globe who trust and rely on us to manage their risk and provide elevated security solutions and services. Last but not least, I'd like to thank you all for joining us on this call today. We look forward to providing more updates next quarter.
I will now hand it back to Rajan for questions.
With that, we will now open the call to questions. To submit your questions, please use the Q&A button on the bottom of your screen. Please note that priority will be given to questions from analysts. We have Gabriel Leung of Beacon Securities on the call. Mr. Leung , please go ahead.
Thank you. Good morning, and thanks for taking my questions. I've got a couple of things. Manny, can you talk a little bit about the Target Park agreement, that recent agreement, how that came about, and how you think that rollout is going to play out over the next 12 to 24 months?
Well, it's a unique opportunity for us. Besides the issue that above parking facilities have, where places like hotels are getting their cars broken into and stolen, or other above-ground parking facilities where cars are being stolen, there is a technology that we're working on with Target Park to be able to automate billing processes in the U.S., where if somebody comes in and parks their car, we read the plate, they walk to the machine to enter their license plate, and they punch in two hours. When the person comes back to pick up their car, they leave, and if they take three or four hours, the software in the back end, via the MAST, will determine that they overstayed what they paid for and automatically get a ticket issued to their home.
This is something that is allowed in the U.S. We can't work on that in Canada yet. We're working on those solutions. It's a very big opportunity. It's opening up a lot of other opportunities for us in the above-ground parking businesses.
Gotcha. I know you talked about sort of 18 additional MAST units coming in. Are those dedicated specifically for Target Park, or for some other stuff you're working on as well?
We have some other stuff that we're working on in Northern Ontario, very unique processes. It's very exciting the way things are getting put together. I'm preparing to put another order in for Europe and Africa. We have interest in Cairo, we're deploying two in Cairo, two in Athens. We have a meeting tomorrow for Germany.
Gotcha. No, that's great. Then just shifting over to NSSG, I mean, the revenue profile there has been quite solid over the last couple of quarters. I think it was a record high in Q4. You mentioned part of that was due to some of the evacuation work you're doing, I guess, in the Middle East. How should we think about that revenue profile in Q1 and towards the back half of this year? Do you think the Q4 level is sort of sustainable, or would you expect a pullback?
No, absolutely sustainable. I'm actually in Bucharest right now, and we have a lot of exciting projects on the go, not only with NSSG traditional business, but because they're introducing MAST, they do have opportunities and doors that are opening. For example, the Cairo project is an NSSG project, and even here in Romania, they have projects that they're talking to. They're really working hard in Ukraine. We have opportunities all over the world, and NSSG is opening those doors since they have a very good presence in this part of the world.
Gotcha. Just moving over to HALO. Just to remind us again, where are you at in terms of rate of adoption within your core sort of high-net-worth residential market right now, your customer base, I guess, and what the opportunity is in terms of upsell on HALO?
The HALO is growing at a constant level. We are expanding our footprint. For example, we opened up Oakville. Etobicoke is growing. Because we have the ability to have two-way voice, HALO is growing in areas like Muskoka, where we don't have rapid response, but we have the ability to talk down to two-way using two-way voice through special cameras that we have made for us. That opportunity is growing because we're moving outside our core six-minute response areas to general public who want to have the detection of trespassers and for us to be able to communicate to them via these cameras that we've manufactured.
Gotcha. Maybe one last question for Raj. In terms of the EBITDA margins, I saw they dipped a little bit from Q3 to Q4. Just curious if there were some additional costs in Q4 and what your expectations would be in terms of EBITDA margins going into Q1 and for the current fiscal year.
Yeah, we had a few additional costs related with some year-end adjustments. We do expect the EBITDA margins to bounce back this coming fiscal year.
Gotcha. I appreciate that. Thanks for the feedback and congrats on the progress.
Thank you, Gabriel.
Thanks, Gabriel.
Thanks, Mr. Leung. We also have Paviter Sangha of Haywood Securities. Paviter, please go ahead.
Hi, guys. I'll be asking questions on behalf of Gianluca Tucci of Haywood. Congrats on a great quarter and year, by the way.
Thank you, Paviter.
As we look ahead to 2027, should we be thinking about this quarter and year's gross margin as the new baseline, or do you see more further improvement here ahead? Does your recurring revenue have a stronger gross margin profile that's contributing to that?
Yes, our recurring revenue has a stronger growth module. We will be growing. Everything is very exciting, the baseline that you were referring to is just the start of our opportunity. I see tremendous growth. As we work together as a team, all our employees are completely in with us, and we're really moving quickly and efficiently. Again, the opportunity is very exciting in the future.
Just to add to that, we do expect growth in both gross margin as well as adjusted EBITDA. With gross margin, we expect those margins to increase as we get to scale with our new products. That will translate also to the bottom line to adjusted EBITDA. At the same time, we're also looking at increasing our efficiencies within the company, that would impact our adjusted EBITDA as well.
Great. With the recurring revenue seeing nice growth, what does that look for this year on recurring revenue in 2027? Is the relationship between the recurring revenue and MAST deployments linear, or how should we be thinking about that correlation there?
Yes, it would be linear. We would expect our recurring revenues to increase over the next year as we continue to deploy more MAST projects, as well as continue growing our traditional business. Our traditional business is growing at a rate of about 10%-15% per year.
Finally, if you can speak to the M&A pipeline, are you primarily looking at smaller Canadian tech acquisitions, or are there other larger international opportunities similar to NSSG?
There's lots of discussions. We're looking at both. We're looking at little tuck-ins, and we're looking at some larger opportunities around the world.
Great. Thank you.
You're welcome. Thank you.
Thank you, Mr. Sangha. We have a question here from a listener. Can you provide any additional color on the MAST units heading to Cairo, Athens, and Germany, as you mentioned? Are these pilot projects with potential to scale?
Yes, they're pilot projects, but they're paid pilot projects. We are generating revenue from them, and the opportunity is very large. They're mostly perimeter protection. Some have talked about gun protection. Some are talking about in Italy, for example, we have a company we're working with that deploy around the world. They're looking for more of an interesting thing about espionage and people coming into their outdoor equipment and trying to look at it. It's very exciting how people recognize that our towers are much more flexible, much more intelligent than what's on the market today. Europe doesn't really have the same type of towers that we're deploying with the same HALO technology that we could modify as needed. It's very, very exciting.
Thank you. There are no further questions. I will now pass the call back to Manny for closing remarks.
In closing, I want to thank everyone once again for joining our call today. Thank you to the analysts for their questions. We look forward to our next update for the first quarter of fiscal 2027.