AVANTE ANNOUNCES RESULTS FOR THE THIRD FISCAL QUARTER OF 2026
Achieves annual growth in revenues of 9.5% & Adjusted EBITDA of 20.2%
- Avante Corp. achieved 8.2% year-over-year revenue growth in fiscal third quarter ended December 31, 2025, including 12.4% increase in recurring revenue
- The Company achieved Adjusted EBITDA of $0.82 million in the fiscal third quarter, compared to $0.77 million in the same quarter of fiscal 2025
- The Company maintains a positive outlook for fiscal 2026, with expected organic growth across its services including Avante Black, HALO, Avante Verified, and MAST.
TORONTO, Ontario, March 02, 2026 (GLOBE NEWSWIRE) -- Avante Corp. (TSX.V: XX) (OTC: ALXXF) (“Avante” or the “Company”) is pleased to announce its financial results for its third quarter of fiscal 2026, representing the three months ended December 31, 2025 (all amounts in Canadian dollars thousands, unless otherwise indicated).
Manny Mounouchos, Founder, Chief Executive Officer and Board Chair of Avante, commented, “The third quarter was a standout period for Avante, reflecting progress in strengthening our product suite and delivering meaningful improvements across our services. NSSG achieved 20.1% year-over-year growth, driven by exceptional performance in its investigations division. Avante Black also produced strong results, growing 31.6%, demonstrating a rising demand for global protective and investigative services among business leaders operating across international markets. As our footprint expands, Avante is increasingly becoming the trusted partner for these critical services, safeguarding both individuals and their assets. Our core business continues to advance steadily, highlighted by a 12.4% increase in recurring revenues. We have entered calendar 2026 with strong momentum and clear focus, including expanding our core operations while accelerating the growth of our technology-enabled product ecosystem.”
Raj Kapoor, Avante’s Chief Financial Officer, added, “I am pleased to report another quarter of positive operating cash flow, and increased annual growth in Adjusted EBITDA, and net income. Our performance continues to be supported by a strong balance sheet with no bank debt, $5.0 million in cash on our balance sheet and $12 million in available credit facilities. This financial strength provides strategic flexibility to execute on our robust M&A pipeline and opportunities for organic growth through internal product developments. At the same time, we remain disciplined operators, with a continued focus on identifying efficiencies and streamlining processes to further reduce operating expenses.”
QUARTERLY FINANCIAL HIGHLIGHTS FOR THE THIRD FISCAL QUARTER ENDED DECEMBER 31, 2025:
- The Company reported revenue of $9.10 million during the third quarter of fiscal 2026, representing year-over-year revenue growth of 8.2%, or $0.69 million, compared to $8.41 million in the prior fiscal year. This increase in revenue was driven by NSSG increasing 20.1% and Avante Black increasing 31.6% as compared to third quarter of fiscal 2025. The Company achieved total gross profit of $3.8 million, an increase of 10.4%, or $0.36 million, in the same quarter in fiscal 2025. Gross profit margins remained relatively stable at 41.8% compared to 40.9% during the prior year’s third quarter.
- The Avante Security segment delivered recurring monthly revenues (“RMR”) of $4.21 million during the third quarter of fiscal 2026, an increase of 12.4% compared to the prior year. This growth was driven by net growth in monitoring customers and the introduction of new recurring revenue services to new and existing clients.
- The Company achieved Adjusted EBITDA of $0.82 million during the third quarter of fiscal 2026, compared to $0.77 million for the same quarter of fiscal 2025, an improvement of 7.0%.
- Avante recorded Net Income of $0.09 million during the third quarter of fiscal 2026, compared to a net loss of $0.15 million in the same quarter of fiscal 2025.
SUMMARY FINANCIAL RESULTS FOR THE THIRD FISCAL QUARTER ENDED DECEMBER 31, 2025:
Readers should refer to the Company’s audited financial statements and MD&A in respect of its fiscal year ended March 31, 2025, for additional risk factors, accounting policies, detailed financial disclosures, reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures, related party transactions, contingencies, and reporting of subsequent events. Such financial statements and MD&A are incorporated by reference into this news release and will be filed electronically through the System for Electronic Document Analysis and Retrieval (“SEDAR+”), which can be accessed at www.sedarplus.ca.
| $ thousands unless otherwise noted | Three Months Ended | Nine Months Ended | ||
| Dec 31, 2025 |
Dec 31, 2024 |
Dec 31, 2025 |
Dec 31, 2024 |
|
| INCOME STATEMENT INFORMATION | ||||
| Recurring Monthly Revenue (1) | $4,206 | $3,741 | $12,460 | $10,312 |
| Revenues | $9,098 | $8,412 | $26,724 | $24,415 |
| Gross profit (1) | $3,799 | $3,441 | $10,832 | $9,924 |
| Gross profit margin | 41.8% | 40.9% | 40.5% | 40.6% |
| Adjusted EBITDA (1) | $824 | $770 | $1,768 | $1,471 |
| Net income (loss) for the period | $92 | ($155) | $186 | ($1,192) |
| Total comprehensive income (loss) for the period | $116 | ($148) | $165 | ($1,189) |
| Average Common Shares during the quarter | 26,648,739 | 26,643,739 | 26,648,739 | 26,643,739 |
| As At | ||
| BALANCE SHEET INFORMATION: | Dec 31, 2025 | Dec 31, 2024 |
| Cash balances & Cash Equivalents | $4,963 | $5,039 |
| Total funded debt | $0 | $0 |
| Total lease obligations | $1,311 | $1,392 |
| Common Shares at period end | 26,648,739 | 26,643,739 |
(1)Adjusted EBITDA and Recurring Monthly Revenues (“RMR”) are non-IFRS financial measures that have no standard meaning under IFRS and as a result may not be comparable to the calculation of similar measures by other companies. See Description of Non-IFRS Financial Measures. Reconciliations of Adjusted EBITDA and RMR to Net Income or Revenues, as applicable, are provided in the Company’s Management Discussion & Analysis (“MD&A”).
| Three Months Ended | Nine Months Ended | |||
| RECONCILIATION OF ADJUSTED EBITDA | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 |
| Net income (loss) for the period | $92 | ($155) | $186 | ($1,192) |
| Current income tax expense (recovery) | $7 | ($2) | $25 | ($2) |
| Interest expense | $61 | $64 | $216 | $219 |
| Depreciation and amortization | $420 | $428 | $1,232 | $1,242 |
| Amortization on capitalized commissions | - | $2 | - | $4 |
| Share-based payments | $33 | $50 | $65 | $96 |
| Long term employee benefits | $211 | - | $44 | - |
| Reorganization and acquisition costs | $721 | |||
| Software cost impairment | - | $383 | - | $383 |
| Adjusted EBITDA | $824 | $770 | $1,768 | $1,471 |
ABOUT AVANTE CORP.:
Avante Corp. is an Ontario corporation listed on the TSX Venture Exchange (TSXV: XX). Avante Security provides premium security services for residential and condominium customers in Toronto and Muskoka, Ontario, through the use of advanced technology and a focus on client service. Avante Security’s business provides a complete offering ranging from system design, sales, installations, and monitoring to services such as alarm response and patrols, personal protection, house staff training, and secure transportation. Avante Security has a specialized skillset in high-rise security integration, monitoring and electronic building management. It also provides consulting and installation of automation and security solutions for the high-end residential market. Avante Security’s signature offerings are its Rapid Alarm Response services, and its Intelligent Perimeter Protection Video Analytics. Avante Security also provides extensive offerings, which include Closed Circuit Television (“CCTV”), access controls and security services for travelling executives. Avante Security uses its proprietary two-way wireless communication technology for security and in other market segments for various remote control and monitoring functions.
For more information, please visit www.avantecorp.ca and consider joining our investor email list.
Emmanuel Mounouchos
Founder, CEO & Board Chair, Avante Corp.
416-923-6984
manny@avantesecurity.com
This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities described herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This news release does not constitute an offer of securities for sale in the United States. The securities described herein have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements.
Non-IFRS Financial Measures
This press release includes certain measures which have not been prepared in accordance with International Financial Reporting Standards (“IFRS”) such as EBITDA, Adjusted EBITDA and Recurring Monthly Revenue (“RMR”). These non-IFRS measures are not recognized under IFRS and and do not have a standardized meaning prescribed by IFRS. Accordingly, users are cautioned that these measures should not be construed as alternatives to net income determined in accordance with IFRS. The non-IFRS measures presented are unlikely to be comparable to similar measures presented by other issuers.
References to EBITDA are to net income before interest, taxes, depreciation and amortization. References to Adjusted EBITDA are to net income before interest, taxes, depreciation, amortization of intangibles & capitalized commissions, share-based payments, acquisition, integration and / or reorganization costs, deferred financing costs, loss (gain) in fair value of derivative liability and expensing of fair value adjustments per IFRS. Recurring Monthly Revenues, or RMR, represent revenue during the fiscal period that benefited from contractual periodic billing to customers, typically monthly, quarterly or annually.
Management believes that Adjusted EBITDA and Recurring Monthly Revenues are appropriate additional measures for evaluating Avante’s performance. Readers are cautioned that neither EBITDA, Adjusted EBITDA nor Recurring Monthly Revenues should be construed as an alternative to net income or revenues (as such financial measures are determined under IFRS), as an indicator of financial performance or to cash flow from operating activities (as determined under IFRS) or as a measure of liquidity and cash flow. Avante’s method of calculating EBITDA, Adjusted EBITDA and Recurring Monthly Revenues may differ from methods used by other issuers and, accordingly, Avante’s reported Non-IFRS measures may not be comparable to similar measures used by other issuers.
Forward-Looking Information
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the Company and the environment in which it operates. Forward-looking statements are identified by words such as “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may” “estimate”, “pro-forma” and other similar expressions. These statements are based on the Company’s expectations, estimates, forecasts and projections. The forward-looking statements in this news release are based on certain assumptions. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the Company’s ability to achieve the benefits expected as a result of the sale of Logixx Security Inc., anticipated growth from acquisitions, new service offerings and from development and deployment of new technologies and the list of risk factors identified in the Company’s Management Discussion & Analysis (MD&A), Annual Information Form (AIF) and other continuous disclosure documents available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update any such statement, whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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