Canada's DATA Communications Q2 revenue falls on lower prior-year sales activity

Data Communications Management (Ontario)

10/08/2026 22:45

Overview
Canada print and digital solutions firm's Q2 revenue fell 2.5% yr/yr
Adjusted EBITDA for Q2 declined 14% from prior year
Company completed acquisition of Octacom to expand tech-enabled services

Outlook
Company expects return to positive year-over-year revenue growth in H2 2026
Company sees improved gross profit from a more favorable business mix in coming quarters
DATA Communications Management expects Octacom acquisition to enhance revenue and earnings through year-end

Result Drivers
OCTACOM ACQUISITION - Co said the acquisition of Octacom expands capabilities in workflow automation and digital transformation, expected to enhance revenue and earnings contributions
LOWER GROSS PROFIT - Q2 gross profit fell to C$28.2 mln from C$30.5 mln as revenue declined vs prior year
NEW CONTRACT WIN - Co selected by a Schedule I Canadian bank to deliver an AI-enabled digital mailroom solution, supporting growth in intelligent document processing services

Company press release: ID:nNFCcbzCZC

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
C$110.92 mln
 
Q2 Adjusted EBITDA
 
C$14.23 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 (Ontario) is C$3.95, about 33.4% above its August 7 closing price of C$2.96
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Aug 10 - Business process solutions firm Conduent Q2 revenue slips
Aug 10 - Canada's Stingray Q1 revenue beats estimates but margins weigh on profit
Aug 10 - TTEC Q2 loss widens; cuts 2026 outlook

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(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.)