Canada's Dye & Durham Q2 revenue falls 8% on market downturn, lower volumes

Dye & Durham

17/02/2026 24:12

Overview

Canada legal software provider's fiscal Q2 revenue declined 8%, missing analyst expectations

Company reported fiscal Q2 net loss of $21.8 mln

Adjusted EBITDA for fiscal Q2 decreased 22% yr/yr

Outlook

Company defers dividend decision pending strategic plan review by March 31, 2026

Dye & Durham faces near-term headwinds in Legal Software Business

Company positioned for long-term growth despite current challenges

Result Drivers

MARKET DOWNTURN - Revenue decline driven by market downturn and lower volumes and pricing, particularly in legal software

BANKING TECHNOLOGY GROWTH - Growth in Banking Technology and Affinity partially offset revenue decline

CASH FLOW IMPROVEMENT - Improved cash flow from operations due to lower financing costs and better working capital

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$107 mln
C$110.01 mln (3 Analysts)
Q2 EPS
-C$0.32
Q2 Net Income
-C$21.80 mln
Q2 Adjusted EBITDA
C$50.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Dye & Durham Ltd is C$5.75, about 54.2% above its February 13 closing price of C$3.73

Press Release: ID:nCNW7P5Cca

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.)