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IndustrialsAdventurousMicro CapNeutral

Canada's Avante Logixx Q1 revenue rises 14%, Adjusted EBITDA more than doubles

Canada's Avante Logixx Q1 revenue rises 14%, Adjusted EBITDA more than doubles


Overview

  • Canadian security solutions firm's fiscal Q1 revenue rose 14.4% yr/yr to C$10 mln

  • Adjusted EBITDA more than doubled yr/yr, driven by higher revenue and margin expansion

  • Company's NSSG unit launched AI-powered TESEUM platform after quarter end


Outlook

  • Company aims to increase recurring revenues by scaling HALO deployments across new verticals

  • Avante plans to improve Adjusted EBITDA margins by focusing on higher-margin service lines and efficiency

  • Company intends to pursue M&A opportunities to expand in the security services industry


Result Drivers

  • DIVISIONAL GROWTH - Protective Services revenue rose 16.7% and Electronic Security revenue increased 34.1%, driving overall Q1 growth

  • RECURRING REVENUE - Recurring Monthly Revenue grew 6.6% yr/yr, reflecting net growth in monitoring customers and new recurring services

  • HIGHER MARGIN SEGMENTS - Gross margin improved to 44.9% from 37.9% yr/yr, driven by growth in HALO and NSSG segments


Company press release: ID:nGNX1JYstD


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Net Loss

C$353,000

Q1 Adjusted EBITDA

C$818,000

Q1 Gross Margin

44.90%

Q1 Gross Profit

C$4.49 mln


Analyst Coverage

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

  • The average consensus recommendation for the business support services peer group is "buy"

  • Wall Street's median 12-month price target for Avante Corp is C$2.75, about 61.8% above its August 27 closing price of C$1.70


Reuters Recommended Reads

  • Aug 28 - Canada's Questor Q2 revenue drops on project delays

  • Aug 28 - Canada's Ionik Q2 revenue falls 8% on lower marketing optimization sales

  • Aug 28 - Legend Power Systems Q3 revenue falls 44% on fewer SmartGATE unit fulfillments


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


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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