Eddy Smart Home Solutions Ltd. Announces Q1/2026 Financial Results

Rhea-AI Summary

Eddy Smart Home Solutions (TSXV: EDY, OTC: ESHSF) reported Q1 2026 results for the period ended March 31, 2026.

• Revenue rose ~16% to $1,232,886.
• Operational revenue (non-IFRS) increased 17% to $2,594,671.
• Average MRR grew 17% to $350,821, implying about $4.2 million annualized.
• In-building devices installed grew ~15% to 135,118.
• Net loss widened to $805,041, mainly from higher sales recruitment costs to expand U.S. growth.

AI-generated analysis. Not financial advice.

Positive

• Q1 2026 revenue up ~16% to $1.23 million
• Operational revenue up 17% to $2.59 million
• Average monthly recurring revenue up 17% to $350,821
• Annualized recurring revenue run-rate at approximately $4.2 million
• In-building devices installed up ~15% to 135,118 units

Negative

• Net loss increased to $805,041 from $751,956 year-over-year
• Higher expenditures from recruiting sales professionals increased costs

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Toronto, Ontario--(Newsfile Corp. - May 27, 2026) - Eddy Smart Home Solutions Ltd. (TSXV: EDY) ("Eddy" or the "Company") is pleased to announce its financial results for the three months ended March 31, 2026.

Q1 2026 Highlights

Revenue

For the three months ended March 31, 2026, revenue increased by $165,883, or approximately 16%, to $1,232,886, compared to $1,067,003 in the corresponding prior-year period.

Operational Revenue

Operational revenue is a non-IFRS measure that represents total billings under customer contracts, including monthly monitoring subscriptions, equipment rentals and sales, project management services, and installation activities.

For the three months ended March 31, 2026, operational revenue increased by $384,177, or 17%, to $2,594,671, compared to $2,210,494 in the corresponding prior-year period.

Strong Growth in Monthly Recurring Revenue ("MRR")

Management considers MRR, a non-IFRS financial measure, to be a meaningful supplemental metric as it reflects the Company's recurring core business activities, including equipment sales and contractual revenue derived from equipment purchase advances. The Company generates revenue through a combination of monthly and annual billing arrangements and, accordingly, reported revenue may fluctuate between periods based on billing cycles and the timing of revenue recognition. Management believes MRR provides a more consistent basis for evaluating operating performance and future growth potential.

For the three months ended March 31, 2026, recurring billings totaled $1,052,462, compared to $898,178 for the corresponding period in 2025, representing a year-over-year increase of $154,284. Average monthly recurring revenue increased 17% to $350,821 in Q1 2026 from $299,393 in Q1 2025, implying an annualized recurring revenue run-rate of approximately $4.2 million.

Growth in In-Building Devices

A key operating metric of the Company's progress and underlying value is the growth in in-building device installations, which reflects the continued deployment of smart water metering equipment and supports future revenue generation.

Eddy has increased the number of in-building devices by approximately 15%, from 117,513 as of March 31, 2025, to 135,118 as of March 31, 2026. Installed devices is an important measure of traction that we are gaining in the market with the deployment of our leak protection services.

Net Loss

For the three months ended March 31, 2026, net loss was $805,041, compared to $751,956 for the same period in 2025. The increase was primarily attributable to higher expenditures related to the recruitment of sales professionals as the Company continues to build out its sales organization. This initiative supports the Company's strategic objective of driving growth and expanding its market presence in the United States.

About Eddy

Eddy is a leading North American provider and developer of smart water metering products and monitoring services for commercial and multi-family residential properties. Eddy's solutions help property owners and developers protect, control, and conserve water usage through advanced sensing devices and behavioral learning software. For more information, visit www.eddysolutions.com.

For further details on the company's financial performance, please review our consolidated financial statements and management's discussion and analysis for the years ended December 31, 2025, and 2024, as well as the unaudited condensed consolidated interim financial statements for the three months ended March 31, 2026, and 2025, available on Eddy's SEDAR profile at www.sedarplus.ca.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements reflect management's current expectations and are based on assumptions and estimates that involve risks and uncertainties. Actual results may differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ are discussed in the company's most recent management's discussion and analysis under "Risks And Uncertainties," available at www.sedarplus.ca. Eddy undertakes no obligation to update these statements, except as required by law.

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.

For further information, please contact:

Mark Silver
Executive Chairman and Chief Executive Officer
Tel: 416.221.8998
Email: ir@eddysolutions.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299156

FAQ

What were Eddy Smart Home Solutions (ESHSF) Q1 2026 revenue results?

Eddy reported Q1 2026 revenue of $1,232,886, up about 16% year-over-year. According to Eddy, this compares with $1,067,003 in the prior-year quarter, reflecting growth in its smart water management and related service activities.

How did Eddy Smart Home Solutions (ESHSF) monthly recurring revenue perform in Q1 2026?

Eddy’s average monthly recurring revenue rose 17% to $350,821 in Q1 2026. According to Eddy, recurring billings reached $1,052,462, implying an annualized recurring revenue run-rate of approximately $4.2 million from its core subscription and contractual activities.

How many in-building devices did Eddy Smart Home Solutions (ESHSF) have as of March 31, 2026?

Eddy had 135,118 in-building devices installed as of March 31, 2026. According to Eddy, this represents about 15% growth from 117,513 devices a year earlier and is a key indicator of future revenue potential from its leak protection services.

What was Eddy Smart Home Solutions (ESHSF) net loss for Q1 2026 and why did it change?

Eddy recorded a Q1 2026 net loss of $805,041, versus $751,956 in 2025. According to Eddy, the larger loss mainly reflects higher expenditures tied to recruiting sales professionals to build its sales organization and support U.S. market expansion.

What is Eddy Smart Home Solutions (ESHSF) operational revenue and how did it change in Q1 2026?

Operational revenue is a non-IFRS measure including all customer contract billings and services. According to Eddy, Q1 2026 operational revenue increased 17% to $2,594,671 from $2,210,494, reflecting growth across monitoring subscriptions, equipment, project management, and installation activities.

How does Eddy Smart Home Solutions (ESHSF) describe its Q1 2026 growth strategy?

Eddy links its strategy to expanding recurring revenue and U.S. market presence. According to Eddy, increased net loss in Q1 2026 stems from investing in sales recruitment to build out its sales organization and drive future growth in leak protection services.