BOARDWALKTECH REPORTS SECOND QUARTER FISCAL 2026 FINANCIAL RESULTS

Rhea-AI Summary

Boardwalktech (OTCQB: BWLKF) reported Q2-FY26 results for the quarter ended Sept 30, 2025. Revenue was $1.0M, up 4% sequentially and down 25% year-over-year; ARR was $3.8M. Gross margin improved to 86.7% from 83.5% in Q1-FY26. Adjusted EBITDA loss was $0.4M, a 44% sequential improvement. Non-IFRS net loss was $0.4M and IFRS net loss was $0.5M (both $(0.01) per share). Cash on hand was $0.04M with $0.6M receivables and $2.6M outstanding debt reclassified as current. Management cited completed upgrades, late-stage license agreements, AI-enabled product opportunities, and August 2025 cost reductions as drivers for expected H2 improvement.

Positive

• Annual recurring revenue $3.8M
• Gross margin improved by 320 bps sequentially
• Adjusted EBITDA loss improved 44% sequentially
• Completed upgrade projects adding professional services revenue

Negative

• Revenue declined 25% YoY to $1.0M
• Cash on hand was only $0.04M at Sept 30, 2025
• Outstanding debt of $2.6M reclassified as current
• Two customer non-renewals materially reduced revenue

News Market Reaction

+4.50%

1 alert

+4.50% News Effect

On the day this news was published, BWLKF gained 4.50%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q2-FY26 revenue: $1.0M Annual recurring revenue: $3.8M Gross margin: 86.7% +5 more

8 metrics

Q2-FY26 revenue $1.0M Three months ended September 30, 2025

Annual recurring revenue $3.8M ARR at September 30, 2025

Gross margin 86.7% Q2-FY26 gross margin

Adjusted EBITDA loss $(0.4)M Q2-FY26, 44% improvement vs Q1-FY26

Non-IFRS net loss $(0.4)M Q2-FY26, $(0.01) per share

Net loss $(0.5)M Q2-FY26, $(0.01) per share

Cash balance $0.04M Cash as of September 30, 2025

Outstanding debt $2.6M Debt drawn on Celtic Bank line of credit

Market Reality Check

Price: $0.0280 Vol: Volume 31,000 vs 20-day a...

low vol

$0.0280 Last Close

Volume Volume 31,000 vs 20-day average 67,306 (relative volume 0.46x). low

Technical Price $0.0213 is below the $0.08 200-day moving average and near the 52-week low of $0.02.

Peers on Argus

Peers showed mixed moves: ARWYF up 15.21%, WDLF down 12.5%, ISGIF down 5.8%, whi...

Peers showed mixed moves: ARWYF up 15.21%, WDLF down 12.5%, ISGIF down 5.8%, while BWLKF was down 0.93%, and others were flat. This points to stock‑specific rather than broad sector dynamics.

Historical Context

5 past events · Latest: Dec 04 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 04	Investor conference	Positive	-1.4%	Investor presentation on growth strategy and EBITDA break-even path.
Nov 26	Quarterly earnings	Neutral	+4.5%	Q2-FY26 results with modest sequential revenue growth, losses narrowing.
Nov 04	Customer contracts	Positive	+0.0%	Renewal and expansion of business with several major enterprise customers.
Oct 15	Shareholder meeting	Neutral	-6.9%	Announcement of date and agenda for 2025 annual and special meeting.
Sep 29	New contract & CFO	Positive	-2.8%	Multi-year Velocity contract plus appointment of experienced CFO.

Pattern Detected

Across the last five news events, 4 showed price moves diverging from generally neutral-to-positive headlines, with only 1 appearing aligned.

Recent Company History

Over recent quarters, Boardwalktech has reported declining revenue versus prior-year periods but maintained high gross margins above 83%. Earnings updates on Feb 25, 2025, Jul 28, 2025, and Aug 28, 2025 highlighted ARR in the $4.2M–$4.8M revenue context, persistent net losses, and cost-saving initiatives. Subsequent news covered a multi-year contract, CFO change, AGM logistics, and renewed customer deals. The current Q2-FY26 release fits this trajectory of modest operational progress alongside ongoing losses and balance sheet constraints.

Market Pulse Summary

This announcement highlighted Q2-FY26 revenue of $1.0M, up sequentially but down versus the prior ye...

Analysis

This announcement highlighted Q2-FY26 revenue of $1.0M, up sequentially but down versus the prior year, alongside a strong gross margin of 86.7%. Losses narrowed, with adjusted EBITDA at $(0.4)M and net loss at $(0.5)M. At quarter-end, cash stood at $0.04M against $2.6M in debt, underscoring ongoing financing and liquidity risk. Investors may watch future ARR trends, execution on late-stage licenses, and further cost controls in upcoming quarters.

Key Terms

international financial reporting standards ("ifrs"), annual recurring revenue ("arr"), adjusted ebitda, non-ifrs net income (loss), +4 more

8 terms

international financial reporting standards ("ifrs") regulatory

"financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS")"

International Financial Reporting Standards (IFRS) are a set of common accounting rules used by many companies around the world to prepare their financial statements. Think of them as a shared recipe or rulebook that helps investors compare a company’s profit, assets and debts across countries; consistent rules reduce surprises, improve transparency, and make it easier to judge the financial health and risks of businesses when making investment decisions.

annual recurring revenue ("arr") financial

"Annual recurring revenue ("ARR"), a non-IFRS metric, at September 30, 2025 was $3.8 million"

Annual recurring revenue (ARR) is the predictable amount of money a company expects to earn each year from ongoing customer subscriptions or contracts. It helps businesses see how steady their income will be over time, much like knowing how much money you can count on receiving regularly from a subscription service.

adjusted ebitda financial

"Adjusted EBITDA (see Non-IFRS Financial Measures) for Q2-FY26 was a loss of $(0.4) million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-ifrs net income (loss) financial

"Non-IFRS net income (loss) is defined as net income (loss) before share-based payments"

Non-IFRS net income (loss) is a company’s reported profit or loss after removing certain items that management believes obscure the underlying business, such as one-time charges, restructuring costs, or stock-based compensation. Think of it as a household’s monthly budget adjusted to exclude a rare emergency expense so you can see the regular spending pattern. Investors use it to gauge recurring performance, but because adjustments aren’t standardized, it should be viewed alongside the official IFRS figures.

line of credit financial

"Outstanding debt as of September 30, 2025 was $2.6 million drawn against line of credit from Celtic Bank"

A line of credit is a flexible borrowing arrangement that lets a company draw money up to a preset limit, repay it, and borrow again as needed—similar to a business credit card or an emergency tap on a savings account. It matters to investors because it shows how a firm manages short-term cash needs and growth funding without taking a single large loan; access, cost, and attached conditions can affect liquidity, interest expenses and financial risk.

forward-looking information regulatory

"This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation"

Forward-looking information are predictions, plans, estimates or expectations about a company’s future performance, results or events, such as sales forecasts, project timelines, or anticipated costs. It matters to investors because these statements guide expectations but rely on assumptions and uncertain factors—like a weather forecast for a business—so investors should treat them as informed guesses rather than guarantees and consider the risks and possible changes behind the numbers.

forward-looking statements regulatory

"may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

risk factors regulatory

"subject to several risks including, without limitation, the risks discussed under the heading "Risk Factors""

Risk factors are elements or conditions that could cause an investment's value to decrease or lead to potential losses. They are like warning signs or obstacles that can affect the success of an investment, making it uncertain or more unpredictable. Recognizing risk factors helps investors understand the possible challenges and make more informed decisions.

AI-generated analysis. Not financial advice.

CUPERTINO, Calif., Nov. 26, 2025 /PRNewswire/ - (TSXV: BWLK) (OTCQB: BWLKF) – Boardwalktech Software Corp. ("Boardwalktech" or the "Company"), a leading digital ledger platform and enterprise software solutions company, is pleased to report its financial results for the three-month period ended September 30, 2025 ("Q2-FY26"). All figures are reported in U.S. dollars, unless otherwise indicated. Boardwalktech's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").

Financial Highlights:

• Revenue for Q2-FY26 was $1 million, a 4% increase from $0.9 million reported for the three-months ending June 30, 2025 ("Q1-FY26") and a 25% decrease versus $1.3 million for the three-months ending September 30, 2024 ("Q2-FY25"), mainly due to two previously announced customer non-renewals.
• Annual recurring revenue ("ARR"), a non-IFRS metric, at September 30, 2025 was $3.8 million. The Company defines ARR, a non-IFRS metric, as the annual recurring revenue expected based on trailing quarterly revenue from license subscriptions and certain recurring services.
• Gross margin for Q2-FY26 was 86.7%, compared to 83.5% in Q1-FY26 and 88.7% in Q2-FY25.
• Adjusted EBITDA (see Non-IFRS Financial Measures) for Q2-FY26 was a loss of $(0.4) million, which was a 44% improvement versus the $(0.6) million loss in Q1-FY26 and flat versus Q2-FY25.
• Non-IFRS net loss for Q2-FY26 (see Non-IFRS Financial Measures) totaled $(0.4) million, $(0.01) per basic and diluted share, versus a $(0.7) million non-IFRS loss in Q1-FY26, $(0.01) per basic and diluted share, and versus a $(0.5) million non-IFRS loss in Q2-FY25, $(0.01) per basic and diluted share.
• Net loss for Q2-FY26 was $(0.5) million, or $(0.01) per basic and diluted share, versus a $(0.9) million loss in Q1-FY26, or $(0.01) per basic and diluted share, and a $(0.7) million loss in Q2-FY25, or $(0.01) per basic and diluted share. This represented a 44% sequential improvement over Q1-FY26 due to an increase in revenues and a decrease in costs.
• Cash as of September 30, 2025 was $0.04 million, plus $0.6 million of trade and other receivables, with cash usage from Operations decreasing by $1.6 million year-over-year in the most recent quarter, before the Company's most recent cost reduction actions, undertaken in August 2025.
• Outstanding debt as of September 30, 2025 was $2.6 million drawn against line of credit from Celtic Bank. Due to requirements under IFRS, this debt was reclassified under current liabilities even though the final debt maturity remains in March of 2027.

"Although Fiscal 2026 has been challenging thus far from a revenue growth perspective, we're starting to see customers lever their Velocity and Digital Ledger successes with expanding deployments and the addition of more  users," said Andrew T. Duncan, Chief Executive Officer of Boardwalktech. "We anticipate improved revenue performance in the second half of the year, contingent on the successful completion of several late-stage license agreements currently in progress. Several upgrade projects with existing customers have been completed or are underway, which will add professional services revenues and increase ARR. We also see meaningful opportunity for further ARR growth as customers utilize Boardwalktech's AI-enhanced capabilities and as we advance our  product development efforts. When combined with our recent cost-reduction initiatives, this anticipated growth positions the Company to soon reach EBITDA break-even."

About Boardwalktech Software Corp.

Boardwalktech has developed a patented Digital Ledger Technology Platform currently used by Fortune 500 companies running mission-critical applications worldwide. Boardwalktech's digital ledger technology and its unique method of managing vast amounts of structured and unstructured data is the only platform on the market today where multiple parties can effectively work on the same data simultaneously while preserving the fidelity and provenance of the data. Boardwalktech can deliver collaborative, purpose-built enterprise information management applications on any device or user interface with full integration with enterprise systems of record in a fraction of the time it takes other non-digital ledger technology-based platforms. Boardwalktech is headquartered in Cupertino, California with offices in India and operations in North America. For more information on Boardwalktech, visit our website at www.boardwalktech.com.

Forward-Looking Information and Statements

This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved".

By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.

An investment in securities of the Company is speculative and subject to several risks including, without limitation, the risks discussed under the heading "Risk Factors" in the Company's filing statement dated August 28, 2025. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

Non-IFRS Financial Measures

Adjusted EBITDA is defined as operating income (loss) before other expenses for the period (as reported in the consolidated statement of loss and comprehensive loss) less depreciation and share-based payments, and other non-recurring expenses.

Non-IFRS net income (loss) is defined as net income (loss) before share-based payments, depreciation, certain financing and non-recurring or one-time items which may arise from time to time. Non-IFRS net income (loss) does not have any standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other companies. Non-IFRS net income (loss) should not be considered in isolation or as a substitute for net income (loss) reported in accordance with IFRS.

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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SOURCE Boardwalktech Software Corp.

FAQ

What were Boardwalktech (BWLKF) Q2-FY26 revenues and ARR on Nov 26, 2025?

Q2-FY26 revenue was $1.0M and ARR was $3.8M as of Sept 30, 2025.

How did Boardwalktech's profitability metrics change in Q2-FY26?

Adjusted EBITDA loss improved to $0.4M (44% sequential improvement); IFRS net loss was $0.5M.

What liquidity and debt did Boardwalktech report for Q2-FY26?

Cash was $0.04M, trade receivables $0.6M, and outstanding debt $2.6M (reclassified current).

Why did Boardwalktech's revenue fall year-over-year in Q2-FY26?

Revenue decline of 25% YoY was mainly due to two previously announced customer non-renewals.

What actions did Boardwalktech take to improve H2 2026 results?

The company completed cost reductions in August 2025, finished upgrade projects, and is pursuing late-stage license deals to boost revenue and ARR.

What is Boardwalktech's gross margin and how did it change in Q2-FY26?

Gross margin was 86.7% in Q2-FY26, up from 83.5% in Q1-FY26.