Canada's DATA Communications Management reports Q2 revenue fall

Data Communications Management

06/08/2025 22:19

Corrects currency in first bullet of Result Drivers section to C$, not $

Overview

DATA Communications Management (DCM) Q2 revenue down 9.5% yr/yr amid challenging market conditions

Adjusted EBITDA margin improves to 14.6% despite revenue decline

Company withdraws financial guidance due to market uncertainties

Outlook

Company withdraws all financial guidance due to market uncertainties

Company cites trade policies and labor issues as revenue headwinds

Result Drivers

REVENUE DECLINE - Revenues fell 9.5% yr/yr to C$113.8 mln, impacted by trade policy uncertainty, economic direction, and labor issues at Canada Post, according to CEO Richard Kellam

ADJUSTED EBITDA - Despite revenue decline, adjusted EBITDA margin improved to 14.6% from 13.4% in Q2 2024, attributed to disciplined focus on maintaining margins and managing overhead costs

BUSINESS OPPORTUNITIES - Co reports a strong and growing pipeline of new business opportunities, the highest in years, which it expects to leverage as market conditions improve

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
C$113.80 mln
Q2 Adjusted EBITDA
C$16.60 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "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$3.75, about 59.7% above its August 5 closing price of C$1.51

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBw9ZfsNma

 (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.)