NowVertical Q1 revenue falls on decline in Brazil reselling

NowVertical

27/05/2026 13:23

Overview
AI data solutions firm's Q1 revenue fell 6% yr/yr due to lower Brazil reselling revenue
Adjusted EBITDA dropped 30% from Q1 2025
Company signed $4 mln, three-year AI and Google Cloud deal with Latin American fintech company

Outlook
Company did not provide specific financial guidance for the current qtr or full yr

Result Drivers
BRAZIL RESELLING DECLINE - Lower Brazil license and maintenance reselling revenue drove decreases in total revenue and gross profit
REVENUE MIX SHIFT - Higher-margin Google Cloud and Integration revenues grew, while lower-margin reselling revenue continued to decline, per CEO Sandeep Mendiratta
STRATEGIC ACCOUNTS GROWTH - Top 30 Strategic Accounts grew 9% yr/yr and now represent 73% of total revenue, up from 62%

Company press release: ID:nGNX1l0vwn

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
 
$9.7 mln
 
Q1 Adjusted EBITDA
 
$1.8 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for NowVertical Group Inc is C$0.36, about 89.5% above its May 26 closing price of C$0.19

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.)