Plurilock Security Inc. Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Plurilock Security (OTCQB: PLCKF, TSXV: PLUR) reported Q1 2026 revenue of $10.2M, down from $18.9M, reflecting a shift away from lower-margin resale. Consolidated gross margin rose to 14.3%; Critical Services margin reached 34%. Operating expenses fell 36% to $2.54M, improving EBITDA and adjusted EBITDA losses.
AI-generated analysis. Not financial advice.
Positive
- Critical Services gross margin increased to 34% from 28% in Q4 2025
- Consolidated gross margin improved to 14.3% in Q1 2026
- Operating expenses reduced 36% YoY to $2.54M
- EBITDA loss improved to $(1.65)M from $(2.17)M
- Adjusted EBITDA loss narrowed to $(0.80)M from $(1.10)M
- Operating cash outflow reduced to $2.31M from $5.14M YoY
- Q1 2026 and subsequent Critical Services and renewal contracts exceed $4M in total value
- Closed $3.2M non-brokered private placement after quarter-end
Negative
- Total revenue declined to $10.2M from $18.9M year-over-year
- Hardware and systems revenue fell to $0.20M from $2.72M
- Software, license and maintenance revenue decreased to $8.01M from $12.41M
- Professional services revenue declined to $1.99M from $3.74M
- Q1 2026 EBITDA and adjusted EBITDA remain negative
- Cash and restricted cash decreased to $1.48M from $2.56M at year-end 2025
- Q1 2026 operating activities used $2.31M of cash
Focused on Profitable Growth, Increasing Margins, Reducing Costs
34% Critical Services gross margin in Q1-2026, up from28% from Q4-202523% increase in consolidated gross margin from11.7% in Q1-2025 to14.3% in Q1-202636% reduction in operating expenses, from$3.98M in Q1-2025 to$2.54M in Q1-2026
Vancouver, British Columbia--(Newsfile Corp. - May 29, 2026) - Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) and related subsidiaries ("Plurilock" or the "Company"), a global cybersecurity solutions provider, today announces its financial results for the three months ended March 31, 2026. All dollar figures are stated in Canadian dollars, unless otherwise indicated.
"The first quarter of 2026 built on the Company's success in 2025 at building a strong foundation for profitable growth while capturing the opportunities in defense & enterprise security solutions," said Ian L. Paterson, CEO of Plurilock Security. "Critical Services continues to play an increasingly meaningful role in both top-line growth and margin expansion, as our gross margin in the segment reached
"By focusing on higher-margin top-line growth in Critical Services with prudent cost reductions, the Company maintains a secure foundation on its path to profitability. Meaningful improvements when compared to the first quarter of 2025 as well as the prior quarter reflect our ability to execute continuously on a sustainable and profitable growth strategy with further operational leverage as we remain focused on capitalizing on the opportunities in the defense and enterprise sectors. As the wider industry continues to demand services-led cyber solutions, the Company is prepared to deliver for its clients and stakeholders."
Q1 2026 Financial Highlights
Total revenue for the three months ended March 31, 2026, was
$10,194,269 , compared to$18,864,271 for the three months ended March 31, 2025. The decrease in revenue was primarily attributable to the Company's strategic decision to reduce lower-margin resale activities as part of its ongoing focus on improving overall margin profile, operational efficiency and long-term profitability. The Company continues to prioritize higher-value cybersecurity solutions and professional services opportunities that are expected to contribute to stronger gross margins and improved operating leverage over time. Comparative figures have been restated and re-presented to reflect the discontinued operations from the technology division.Hardware and systems sales revenue for the three months ended March 31, 2026, totalled
$196,251 compared to$2,720,232 in the comparative three months ended March 31, 2025. Software, license, and maintenance sales revenue for the three months ended March 31, 2026, was$8,010,501 compared to$12,405,475 in the comparative period. Professional services revenue was$1,987,517 for the three months ended March 31, 2026, compared to$3,738,564 in the three months ended March 31, 2025. This has been restated and re-presented to reflect the discontinued operations from the technology division.Hardware and systems sales revenues for the three months ended March 31, 2026, accounted for
1.9% of total revenues compared to14.4% for the three months ended March 31, 2025. Software, license and maintenance sales revenues for the three months ended March 31, 2026, accounted for78.6% compared to65.8% for the three months ended March 31, 2025. Professional services revenue for the three months ended March 31, 2026, accounted for19.5% of total revenues, compared to19.8% for the three months ended March 31, 2025. This has been restated and re-presented to reflect the discontinued operations from the technology division.Gross margin for the three months ended March 31, 2026, was
14.3% compared to11.6% for the three months ended March 31, 2025. The improvement in gross margin was primarily driven by a more disciplined revenue mix, as the Company continued to prioritize higher-margin professional services engagements and reduce exposure to lower-margin resale transactions. Comparative figures have been restated and re-presented to reflect the discontinued operations from the technology division.EBITDA for the three months ended March 31, 2026, was
$(1,648,740) compared to$(2,169,587) during the same period in the prior year. The improvement in EBITDA reflects the Company's continued focus on operating efficiency initiatives and disciplined cost management, including reductions in sales and marketing expenditures, general and administrative costs, and overall corporate overhead. During the quarter, management continued to align the Company's cost structure with its strategic focus on higher-margin professional services opportunities and long-term profitability. Additional restructuring and cost optimization initiatives implemented near the end of Q1 2026 are expected to further improve operating leverage in future periods. This has been restated and re-presented to reflect the discontinued operations from the technology division.Adjusted EBITDA for the three months ended March 31, 2026 was
$(800,929) compared to$(1,099,793) during the same period in the prior year. This has been restated and re-presented to reflect the discontinued operations from the technology division.Cash and cash equivalents and restricted cash on three months ended March 31, 2026 was
$1,478,671 compared to$2,560,764 on December 31, 2025.During the three months ended March 31, 2026, the Company used
$2,308,806 of cash from operating activities compared to$5,135,140 used of cash during the same periods in the prior year.
Q1 2026 Operational Highlights
04-Feb-26 Plurilock announces four cybersecurity contracts renewals totaling
$1.19 million across two enterprise and government customers10-Mar-26 Plurilock provided corporate update on the leadership transition and operational efficiency through cost discipline and AI innovation resulting in
$1.0 million of annualized cost savings17-Mar-26 Plurilock announces Spring cyber defense conference and event attendance at RSA Conference
24-Mar-26 Plurilock announces
$445,000 security software renewal with U.S. Department of Defense Agency
Select Highlights Subsequent to Q1 2026:
- April 22, 2026: Plurilock Appoints Defense and Intelligence Veterans Jean-Yves Belzile and Eric Sauve of Innovigo to Industry Advisory Council
- May 5, 2026: Plurilock Announces New Critical Services Contracts Totaling CAD
$1.31 Million
- May 6, 2026: Plurilock Launces CPCSC Readiness Program for Canadian Defense Industrial Base
- May 12, 2026: Plurilock Announces Closing of CAD
$3.2 Million Non-Brokered Private Placement
- May 13, 2026: Plurilock Announces New Critical Services Contracts Totaling CAD
$1.13 Million
Outlook
Plurilock entered 2026 with strong operational momentum, driven by continued margin growth in the Critical Services business and the shift toward services-led, product enabled and AI-native cybersecurity. As demand increases for hands-on expertise to architect, deploy, manage and operate complex environments, the focus on high-value, re-occurring revenue continues to drive margin expansion.
Accelerating defence and security investments across Canada and NATO-aligned markets are creating sustained demand tailwinds in areas where the Company is already well established. At the same time, the rapid advancement of artificial intelligence, combined with its increasing adoption by threat actors, is increasing the complexity, speed, and sophistication of the cyber threat landscape, reinforcing the need for advanced, adaptive cyber defense capabilities.
The Company sees meaningful opportunity in expanding its presence within NATO-aligned and Canadian defense markets, where it has an established footprint. Rising global defense spending and cybersecurity priorities are creating opportunities to deepen relationships with new and existing partners.
Looking ahead, the Company remains focused on driving toward profitability through disciplined execution. This includes converting one-time engagements into re-occurring and long-term contracts, improving services mix, and maintaining a strong emphasis on operational efficiency.
At the same time, the Company is strengthening collaboration with strategic partners and pursuing new relationships with major defense prime contractors, enabling access to larger and more complex programs.
This strategy is supported by a disciplined approach to cost management, with a focus on optimizing spend and investing in high-margin growth areas. Together, these efforts position Plurilock to achieve continued margin expansion and progress toward cash-flow positivity.
Summary of Key Financial Metrics
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7288/299338_plur.jpg
Note:
(1) Non-GAAP measure. Earnings before interest, taxes, depreciation, and amortization ("EBITDA") and Adjusted EBITDA should not be construed as alternatives to net income/loss determined in accordance with IFRS. EBITDA and Adjusted EBITDA do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines EBITDA as earnings before interest, taxes, impairment on assets and amortization. Adjusted EBITDA is defined as EBITDA before stock-based compensation, financing, investor relations and acquisition related expenses, and realized gain on marketable securities. The Company believes that EBITDA and Adjusted EBITDA is a meaningful financial metric for investors as it adjusts income to reflect amounts which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives.
Non-IFRS measures
This news release presents information about EBITDA and Adjusted EBITDA, both of which are non-IFRS financial measures, to provide supplementary information about operating performance. Plurilock defines EBITDA as earnings before interest, income taxes, depreciation, amortization, impairment on assets and foreign exchange translation. Adjusted EBITDA removes non-cash share-based compensation, financing, investor relations, realized gain or loss on marketable securities, impairment on assets and acquisition-related expenses from EBITDA. The Company believes that EBITDA and Adjusted EBITDA is a meaningful financial metric for investors as it adjusts income to reflect amounts which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. EBITDA and Adjusted EBITDA are not intended as a substitute for IFRS measures. A limitation of utilizing these non-IFRS measures is that the IFRS accounting effects of the adjustments do in fact reflect the underlying financial results of Plurilock's business and these effects should not be ignored in evaluating and analyzing Plurilock's financial results. Therefore, management believes that Plurilock's IFRS measures of net loss and the same respective non-IFRS measure should be considered together. Non-IFRS measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Readers should refer to the Company's most recently filed MD&A for a more detailed discussion of these measures and their calculations.
Quarterly Filings
Management's Discussion and Analysis and Condensed Interim Consolidated Financial Statements and the notes thereto for the three months ended March 31, 2026 can be obtained from Plurilock's corporate website at www.plurilock.com and under Plurilock's SEDAR+ profile at www.sedarplus.ca.
About Plurilock
Plurilock sells Cyber Security solutions to the United States and Canadian Federal Governments along with Global 2000 companies. Through these relationships, Plurilock sells its unique brand of Critical Services – aiding clients with our expertise to defend against, detect, and prevent costly data breaches and cyber-attacks.
For more information, visit https://www.plurilock.com or contact:
Ian L. Paterson
Chief Executive Officer
ian@plurilock.com
416.800.1566
Ali Hakimzadeh
Executive Chairman
ali@sequoiapartners.ca
604.306.5720
Forward-Looking Statements
This press release may contain certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") which relate to future events or Plurilock's future business, operations, and financial performance and condition. Forward-looking statements normally contain words like "will", "intend", "anticipate", "could", "should", "may", "might", "expect", "estimate", "forecast", "plan", "potential", "project", "assume", "contemplate", "believe", "shall", "scheduled", and similar terms. Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions and other factors that management currently believes are relevant, reasonable, and appropriate in the circumstances. Although management believes that the forward-looking statements herein are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to Plurilock's business. Additional material risks and uncertainties applicable to the forward-looking statements herein include, without limitation, unforeseen events, developments, or factors causing any of the aforesaid expectations, assumptions, and other factors ultimately being inaccurate or irrelevant. Many of these factors are beyond the control of Plurilock. All forward-looking statements included in this press release are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this press release are made as at the date hereof and Plurilock undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable securities laws.
Cautionary Note Regarding Future Oriented Financial Information
This news release also contains future-oriented financial information and financial outlook (collectively, "FOFI") regarding the Company's eventual recognition of backlogged service contract revenue, which is subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this news release was made by management as of the date of this news release and was provided for the purpose of providing readers with an understanding of the importance of such backlogged contractual revenues, and is not an estimate of profitability or any other measure of financial performance. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein. The Company disclaims any intention or obligation to update or revise any FOFI contained in this News Release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein. The Company's Chief Executive Officer and Chief Financial Officer approved the FOFI contained in this news release on May 28, 2026.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299338