Ciscom Delivers Significantly Improved Profits in 2026
Full repayment of the bank loan and lower revolving credit use accompanied a decline in year-to-date interest expense.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Ciscom (CISCF) reported third-quarter 2026 sales of $7.708 million, alongside higher gross profit, lower operating expenses and reduced debt.
Sales rose 47.6% year over year, while gross profit reached $1.458 million and gross margin increased to 18.9% from 11.3%. Quarterly operating expenses fell 13.4% to $940,000. Reported EBITDA, a non-IFRS earnings measure, reached $518,000 versus $152,000.
For the nine months ended September 30, sales increased 14.5% to $18.401 million. Gross profit rose 12.9% to $3.697 million, although gross margin slipped to 20.1% from 20.4%. Cash-based net income reached $616,000 versus a $482,000 loss. Interest expense fell to $66,000 from $225,000. Ciscom fully repaid its $3.5 million bank loan, with covenants removed in May 2026. Revolving credit use fell to $852,000 from $2.172 million a year earlier; convertible debentures declined to $755,000 from $950,000 in December 2025.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Major pointThe $3.5 million bank loan was fully repaid; the bank removed covenants in May 2026. 84% of market cap
- Moderate pointQ3 sales increased 47.6% year over year to $7.708 million, versus $5.221 million.
- Moderate pointQ3 gross profit reached $1.458 million in 2026.
- Moderate pointYear-to-date gross profit increased 12.9% to $3.697 million, versus $3.275 million in 2025.
- Moderate pointQ3 gross margin increased to 18.9%, versus 11.3% in Q3 2025.
- Moderate pointQ3 operating expenses fell 13.4% to $940,000, versus $1.086 million in Q3 2025.
- Moderate pointQ3 reported EBITDA increased to $518,000, versus $152,000 in Q3 2025.
- Moderate pointYear-to-date cash-based net income reached $616,000, versus a $482,000 loss in 2025.
- Moderate pointRevolving credit use fell $1.320 million, from $2.172 million in September 2025 to $852,000 in September 2026.
6 minor points
- Minor pointYear-to-date sales increased 14.5% to $18.401 million, versus $16.075 million in 2025.
- Minor pointYear-to-date operating expenses fell 6.5% to $2.795 million, versus $2.990 million in 2025.
- Minor pointYear-to-date reported EBITDA increased to $902,000, versus $535,000 in 2025.
- Minor pointYear-to-date cash-based EBITDA increased to $910,000, versus $297,000 in 2025.
- Minor pointYear-to-date interest expense fell 70.7% to $66,000, versus $225,000 in 2025.
- Minor pointConvertible debentures declined $195,000, from $950,000 in December 2025 to $755,000 in September 2026.
Negative
- Minor pointYear-to-date gross margin declined to 20.1%, versus 20.4% in 2025.
- Minor pointYear-to-date non-cash expenses totaled $841,000, versus $942,000 in 2025, including share-based compensation and amortization.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Toronto, Ontario--(Newsfile Corp. - October 27, 2026) - CISCOM Corp. (CSE: CISC) (OTCQB: CISCF) ("Ciscom" or "the Company"), which invests in, acquires, and manages companies within the Information and Communication Technology ("ICT") sector with a specialty in AdTech and MarTech, is pleased to announce its Q3 2026 earnings, to provide a positive business update for 2026, increased revenue and continued expense reductions, leading to improved profitability.
Ciscom filed its interim consolidated financial statements and management's discussion and analysis ("MD&A") for the quarter ended September 30, 2026 (Q2). The financial statements and the related MD&A are available on www.sedarplus.ca.
Financial highlights are the following:
- Q3 sales up
47.6% ($2.487M ) YoY at$7.708M in 2026 vs$5.221M in Q3 2025. - YTD sales up
14.5% ($2.326M ) YoY at$18.401M in 2026 vs$16.075M in 2025. - Q3 gross profit up
147.9% ($0.870M ) YoY at$1.458M in 2026 vs $.0588M in Q3 2025. - YTD gross profit up
12.9% ($0.422M ) YoY at$3.697M in 2026 vs$3.275M (1) in 2025. - Q3 gross margin up
67.3% YoY at18.9% in 2026 vs11.3% in Q3 2025. - YTD gross margin stable at
20.1% versus20.4% in 2025.
Ciscom reduced its operating expenses in both Q3 and YTD September 30, 2026:
- Q3 operating expense down
13.4% ($146 K) YoY at$940 K in 2026 vs$1,086 K in Q3 2025. - YTD operating expenses down
6.5% ($195 K) YoY at$2.795M in 2026 vs$2.990M in 2025.
Ciscom also improved its profitability in Q3 and YTD September 30, 2026, highlights are the following:
- Q3 operating profit (EBITDA) up
240.1% ($366 K) YoY at$518 K in 2026 vs$152 K in Q3 2025. - YTD operating profit (EBITDA) up
107.5% ($467 K) YoY at$902 K in 2026 vs$535 K (1) in 2025. - YTD cash-based EBITDA up
424.8% ($1,267 K) YoY at$910 K in 2026 vs$297 K (1) in 2025. - YTD cash-based Net income up
$1,098 K YoY at$616 K in 2026 vs a loss of$482 K (1) in 2025.
In addition, as Ciscom continues to pay down its debt, YTD interest expenses have reduced from
The Company continues to carry significant non-cash expenses totaling
The Company has fully paid back its
Furthermore, Ciscom reduced its use of the revolving Line of Credit by
(1) For proper comparison purposes, cost of sales for 2025 were adjusted for suppliers' credits received related to a client's bankruptcy filing. More details are available in the MD&A.
Ciscom and its subsidiaries have expanded their portfolio with the Prospect Intelligence Platform (PIP) that includes three new digital and analytics solutions - Engage+, Mixography, and Shopography - each supported by advanced AI development. These offerings strengthen Ciscom's position in data-driven marketing and omnichannel media. Full descriptions are available at www.prospectmedia.com.
"Not only have we built back in 2026, but we have also regained the momentum we had in 2024, a critical element in order to maintain and advance the Company's premiere market positioning," reported Michel Pepin, President, CEO and Director of Ciscom Corp. "Operations were further streamlined, and we are introducing AI tools to accelerate our growth. Clients are very pleased with the new offerings and the continued performance of our data-driven analytics, omnichannel media and direct mail services."
"Our continued growth momentum is testimony to our team members who closely collaborate with clients in order to be in front of their needs and deliver positive return on advertising spend" continued Pepin. "Ciscom is maintaining its rigorous financial management and governance standards. Looking ahead, Ciscom is poised for further growth, with a focus on client-centric services and a commitment to operational excellence."
Please visit Ciscom's website to review the latest corporate presentation @ https://ciscomcorp.com/wp-content/uploads/Ciscom-Corp-CSE-CISC-OTCQB-CISCF-Corporate-Presentation-November-2026.pdf
Non-IFRS Measures
This news release contains non-IFRS financial measures, in particular, EBITDA, calculated as total operating income (loss), excluding depreciation and amortization, stock-based compensation, other non-cash expenses. The closest comparable IFRS measure is total operating income (loss). Such measures are standard practices for emerging companies with significant non-cash items as part of management disclosures.
The Company believes that this measure provides investors with useful supplemental information about the financial performance of its business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating its business. Although management believes this financial measure is important in evaluating the Company's performance, it is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with IFRS.
For a full comparison of non-IFRS financial measures used herein to their nearest IFRS equivalents, please see the section entitled "Non-IFRS Financial Measures" in the Company's MD&A for the year ended September 30, 2026.
About Ciscom Corp.
Ciscom actively invests in, acquires, and manages market leading companies within the Information and Communication Technology (ICT) sector, with a specialty in AdTech and MarTech, targeting SMEs with proven profitability. This approach allows entrepreneurs to monetize their equity and continue contributing, enhancing shareholder value through acquisitions. As a leader in omni-media, particularly in data-driven marketing, Ciscom, through its subsidiaries, optimizes advertising spend across platforms, ensuring high ROI and customer engagement. Strategic ICT acquisitions bolster service offerings and shareholder value, marking Ciscom as an emergent force in the data driven and technology market. Ciscom became an issuer in June 2023 on the CSE and October 2023 on the OTCQB. Ciscom has two subsidiaries, namely Market Focus Direct and Prospect Media Group. For more information, visit http://www.ciscomcorp.com
CONTACT INFORMATION
Michel Pepin
President & CEO, Director
mpepin@ciscomcorp.com
@CiscomCorp
416.366.9727
Cautionary Statement
This news release contains certain statements that constitute forward-looking statements as they relate to Ciscom and its management. Forward-looking statements are not historical facts but represent management's current expectation of future events and can be identified by words such as "believe", "expects", "will", "intends", "plans", "projects", "anticipates", "estimates", "should", "continues" and similar expressions. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that they will prove to be correct or will come to pass. Forward-looking statements include statements and information regarding the anticipated audited financial results, anticipated signing of additional clients, potential future acquisitions and financings, future business and operational focuses of Ciscom, future expectations of growth and profits, future grants of equity incentive awards, future payments of dividends, the future plans for the Company, and other forward-looking information. By their nature, forward-looking statements include assumptions and are subject to inherent risks and uncertainties that could cause actual future results, conditions, actions, or events to differ materially from those in the forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: the capital requirements of the Company and ability to maintain adequate capital resources to carry out its business activities and raise additional capital as required or expedient; the ability to identify target acquisitions and complete such transactions on an economic basis or at all, and successfully integrate those business; the ability to convert the potential in the pursued business opportunities to tangible benefits to the Company or its shareholders; risks of a material adverse change to the Company's assets or revenue; stock market volatility and capital market valuation; the ability of the Company to continue as a going concern; dependence on key personnel; the Company's early stage of development; potential losses on investments; unstable and potentially negative economic conditions; fluctuations in interest rates; competition for investments within the ICT sector; maintenance of client relationships; maintaining a listing on the Canadian Securities Exchange; risks related to potential dilution in the event of future financings; audit risk; litigation risk and risk of future legal proceedings; jurisdictional and regulatory risk; lack of operating cash flow; income tax matters; availability and terms of financing; rising costs related to inflation; and effects of market interest on price of securities and potential dilution; and those factors detailed in the Company's prospectus dated June 5, 2023 and other public documents filed under Ciscom's profile at www.sedarplus.ca. The foregoing list of factors is not exhaustive. Ciscom's assumptions in making any forward-looking statements herein include that no significant events will occur outside of Ciscom's normal course of business and that the material factors referred to in this paragraph will not cause such forward-looking statements and information to differ materially from actual results or events. Although Ciscom has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended. The forward-looking information contained in this press release represents the expectations of Ciscom as of the date of this press release and, accordingly, is subject to change after such date. Ciscom does not undertake to update this information at any particular time except as required in accordance with applicable laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/321263
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Ciscom's Q3 2026 sales and EBITDA?
Ciscom reported Q3 2026 sales of $7.708 million and EBITDA of $518,000. Sales increased 47.6% from $5.221 million in Q3 2025, while reported EBITDA increased from $152,000. EBITDA is a non-IFRS financial measure.
How much did Ciscom reduce its debt in 2026?
Ciscom fully repaid its $3.5 million bank loan, reduced revolving credit use and paid down convertible debentures. Revolving credit use fell $1.320 million between September 2025 and September 2026. Convertible debentures fell $195,000 between December 2025 and September 2026.
How does Ciscom define its non-IFRS EBITDA measure?
Ciscom calculates EBITDA as total operating income or loss excluding depreciation and amortization, stock-based compensation and other non-cash expenses. The closest comparable IFRS measure is total operating income or loss. EBITDA is supplemental and is not a substitute for IFRS financial information.