Canada's Dye & Durham Q3 revenue falls, hurt by customer losses

Dye & Durham

19/05/2026 12:09

Overview

Canada legal software provider's fiscal Q3 revenue fell 12% yr/yr due to market downturn and customer losses

Net income turned positive, mainly from Credas disposal gain and cost reductions

Adjusted EBITDA dropped 19% yr/yr, reflecting lower revenue and higher professional fees

Outlook

Company withdraws previously issued long-term financial outlook and will not provide updates

Dye & Durham expects C$11 mln run-rate cost savings in FY2026, C$6-8 mln in FY2027

Company no longer expects high single-digit organic revenue growth in three to five years

Result Drivers

MARKET DOWNTURN AND CUSTOMER LOSSES - Co said revenue decline was driven by market downturn and lower volumes and pricing from customer losses in practice management and data insights platforms

CREDAS DISPOSAL GAIN - Net income increased mainly due to gain on disposal of Credas subsidiary

COST REDUCTIONS AND OPERATIONAL EFFICIENCIES - Co said cost reductions and operational efficiencies partially offset increased professional fees and strategic reinvestments in labour and IT infrastructure

Company press release: ID:nCNWXsVn8a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
C$91.2 mln
Q3 Net Income
C$66 mln
Q3 Adjusted EBITDA
C$42.9 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

Wall Street's median 12-month price target for Dye & Durham Ltd is C$4.50, about 50% above its May 15 closing price of C$3.00

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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.)