Canada's DATA Communications Management Q1 revenue falls 5%

Data Communications Management

11/05/2026 22:38

Overview

Canada print and digital solutions provider's Q1 revenue fell 5% yr/yr

Q1 adjusted EBITDA rose 2.7% yr/yr, driven by lower SG&A expenses

Company repurchased 157,500 common shares during the quarter

Outlook

Company anticipates continued uncertainty due to trade policy volatility and geopolitical unrest

DATA Communications expects business development and cost management to offset potential financial headwinds

Company aims to improve gross margin and generate strong cash flow in 2026

Result Drivers

SLOW START - Management said revenue declined due to a slower-than-anticipated start to the year

COST CONTROL - Adjusted EBITDA increased, reflecting disciplined management of SG&A expenses, per CEO Richard Kellam

TECH-ENABLED REVENUE - Company saw increasing contributions from technology-driven revenue streams, with tech-enabled subscription services and fees up 7.4% yr/yr

Company press release: ID:nNFC4sZXHJ

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
C$117.40 mln
Q1 EPS
C$0.09
Q1 Net Income
C$4.80 mln
Q1 Adjusted EBITDA
C$19.10 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the advertising & marketing peer group is "buy."

Wall Street's median 12-month price target for Data Communications Management Corp is C$3.25, about 99.4% above its May 8 closing price of C$1.63

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 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.

(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.)