Canada's Zoomd Technologies Q1 revenue falls 62% yr/yr

Zoomd Technologies

28/05/2026 12:09

Overview
Canadian marketing technology platform's Q1 revenue fell 62% yr/yr due to reduced activity from major customers
Adjusted EBITDA turned negative in Q1, reflecting lower revenues and customer concentration
Company launched share buyback program after Q1 results as part of capital allocation strategy

Outlook
Company expects cost savings from Q1 actions to be reflected beginning in Q2 2026
Zoomd says activity levels with one major customer have recently begun to increase
Company plans to pursue organic growth and selective inorganic opportunities using its cash position

Result Drivers
MAJOR CUSTOMER IMPACT - Revenue fell due to reduced activity from two major customers after changes to their operating models, with only partial recovery from one
COST OPTIMIZATION - Co implemented cost optimization measures, including a 20% workforce reduction and other expense cuts, to align costs with current activity levels
DIVERSIFICATION - Customers onboarded in 2025 contributed about 30% of Q1 revenue, helping reduce customer concentration

Company press release: ID:nPn5tmNZ8a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
 
$6.90 mln
 
Q1 Adjusted EBITDA
 
-$300,000
 
Q1 Gross Margin
 
34.00%
 

Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the advertising & marketing peer group is "buy"
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 12 three months ago

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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.)