Plurilock Security Inc. Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Plurilock Security (OTCQB: PLCKF) reported Q2 2026 revenue of $11.3M, down from $16.2M in Q2 2025, reflecting a strategic pullback from lower-margin resale activities. Despite lower sales, consolidated gross margin rose to 17.3% from 11.4%, driven by a shift toward higher-margin Critical Services and cybersecurity solutions.
Operating expenses fell 38% year-over-year to $2.2M, and EBITDA loss improved to $0.27M from $1.95M, while net loss narrowed to $0.47M from $2.23M. Cash and restricted cash were $2.57M at June 30, 2026. The company also closed a $3.3M private placement and announced new critical services contracts totaling CAD$1.31M.
Positive
- Gross margin expansion to 17.3% in Q2 2026 from 11.4% in Q2 2025
- Operating expenses down 38% to $2.2M from $3.6M year-over-year in Q2
- EBITDA loss reduced to $0.27M from $1.95M in Q2 year-over-year
- Net loss narrowed to $0.47M from $2.23M in Q2 year-over-year
- Critical services contracts announced totaling CAD$1.31M in Q2 2026
- $3.3M private placement completed in May 2026 to bolster funding
Negative
- Revenue decline to $11.3M from $16.2M in Q2 year-over-year
- Six‑month revenue down to $21.5M from $35.1M year-over-year
- Continuing net losses: $2.78M for six months ended June 30, 2026
- Negative operating cash flow of $2.11M in Q2 2026
- Liabilities exceed assets: total liabilities $26.0M vs. total assets $22.5M
- Share dilution: weighted average shares rose to 86.4M from 69.0M
AI-generated analysis. How Rhea-AI works. Not financial advice.
Executing on Increasing Margins, Reducing Costs
44% Critical Services gross margin in Q2 2026, up from25% in Q2 2025 and34% in Q1 202617% consolidated gross margin in Q2 2026, up from11% in Q2 2025 and14% in Q1 202638% reduction in operating expenses year-over-year, down to$2.2M in Q2 2026 from$3.6M in Q2 2025 and down12% from$2.5M in Q1 2026
Vancouver, British Columbia--(Newsfile Corp. - August 26, 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 and six months ended June 30, 2026. All dollar figures are stated in Canadian dollars, unless otherwise indicated.
"We made meaningful progress in the second quarter toward the financial and operational objectives we established for 2026," said Ian L. Paterson, CEO of Plurilock. "Importantly, the quality of our revenue continued to improve. We intentionally placed strategic focus on higher margin engagements leading gross profit to increase by approximately
"We also continued to take decisive action on our cost structure. Operating expenses declined by
"Our focus for the remainder of 2026 is clear: continue expanding the contribution from Critical Services, convert opportunities into recurring and long-term engagements, maintain discipline around operating expenses, and improve cash-flow generation. We believe the progress achieved during the first half of the year provides a stronger operating foundation from which to pursue profitable growth."
Q2 2026 Financial Highlights
Total revenue for the three and six months ended June 30, 2026, were
$11,280,638 and$21,474,907 respectively, compared to$16,240,202 and$35,104,473 for the three and six months ended June 30, 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. While this transition resulted in lower topline revenue during the quarter, 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 and six months ended June 30, 2026, totalled
$1,147,588 and$1,343,839 respectively compared to$1,350,705 and$4,070,937 in the comparative three and six months ended June 30, 2025. Software, license, and maintenance sales revenue for the three and six months ended March 30, 2026, was$7,967,819 and$15,978,320 compared to$10,621,080 and$23,026,555 in the comparative period. Professional services revenue was$2,165,231 and$4,152,748 for the three and six months ended June 30, 2026, compared to$4,268,417 and$8,006,981 in the three and six months ended June 30, 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 and six months ended June 30, 2026, accounted for
10.2% and6.3% of total revenues compared to8.3% and11.6% for the three and six months ended June 30, 2025. Software, license and maintenance sales revenues for the three and six months ended June 30, 2026, accounted for70.6% and74.4% compared to65.4% and65.6% for the three and six months ended June 30, 2025. Professional services revenue for the three and six months ended June 30, 2026, accounted for19.2% and19.3% of total revenues, compared to26.3% and22.8% for the three and six months ended June 30, 2025. This has been restated and re-presented to reflect the discontinued operations from the technology division.Gross margin for the three and six months ended June 30, 2026, were
17.3% and15.9% respectively compared to11.4% and11.5% for the three and six months ended June 30, 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 and six months ended June 30, 2026, were
$(268,311) and$(1,917,051) respectively compared to$(1,946,796) and$(4,115,743) 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 and into Q2 2026 which 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.Cash and cash equivalents and restricted cash on three months ended June 30, 2026 was
$2,573,692 compared to$2,560,764 on December 31, 2025.During the three and six months ended June 30, 2026, the Company used
$2,114,347 and$4,423,153 respectively of cash from operating activities compared to$47,795 cash generated and used$5,087,345 of cash during the same periods in the prior year. Of which $Nil and $Nil was used in discontinued operating activities for the three and six months ended June 30, 2026 and$111,499 and$136,974 was used from discontinued operating activities during the same period in the prior year.
Q2 2026 Operational Highlights
Plurilock appoints defense and intelligence veterans Jean-Yves Belzile and Eric Sauve of Innovigo to Industry Advisory council (April 22, 2026)
Plurilock announces new critical services contracts totaling CAD
$1.31 Million (May 5, 2026)Plurilock launches CPCSC Readiness program for Canadian defense industrial base (May 5, 2026)
Plurilock announces closing of
$3.3 million private placement (May 12, 2026)Plurilock receives extension on U.S. federal government contract vehicle (SEWP V) (June 2, 2026)
Plurilock announces new
10% shareholder (June 3, 2026)Plurilock announces U.S. federal and state data center sales totaling CAD
$1.1 Million (June 30, 2026)
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 defense 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 our presence within NATO-aligned and Canadian defense markets, where we already have 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
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| $ | $ | $ | $ | |||||||||
| Operating Revenues | ||||||||||||
| Revenue | 11,280,638 | 16,240,202 | 21,474,907 | 35,104,473 | ||||||||
| Hardware and systems sales | 1,147,588 | 1,350,705 | 1,343,839 | 4,070,937 | ||||||||
| Software, license and maintenance sales | 7,967,819 | 10,621,080 | 15,978,320 | 23,026,555 | ||||||||
| Professional services | 2,165,231 | 4,268,417 | 4,152,748 | 8,006,981 | ||||||||
| Gross margin (%) | ||||||||||||
| Net loss for the period | (468,186 | ) | (2,230,829 | ) | (2,780,300 | ) | (5,243,192 | ) | ||||
| Basic and diluted loss per share - for the period | (0.00 | ) | (0.03 | ) | (0.03 | ) | (0.07 | ) | ||||
| EBITDA(1) | (268,311 | ) | (1,946,796 | ) | (1,917,051 | ) | (4,115,743 | ) | ||||
| Reconciliation of EBITDA: | ||||||||||||
| Net loss for the period | (468,186 | ) | (2,230,829 | ) | (2,780,300 | ) | (5,243,192 | ) | ||||
| Foreign exchange translation gain/(loss) | (64 | ) | 89,039 | 499,224 | 679,992 | |||||||
| Amortization | 47,748 | 45,480 | 94,919 | 137,015 | ||||||||
| Interest expenses | 135,883 | 139,670 | 252,798 | 299,656 | ||||||||
| Income tax recovery expense (recovery) | 16,308 | 9,844 | 16,308 | 9,844 | ||||||||
| Impairment on assets | - | - | - | 942 | ||||||||
| Adjusted EBITDA(1) | (259,008 | ) | (1,184,746 | ) | (1,059,937 | ) | (2,056,899 | ) | ||||
| Reconciliation of adjusted EBITDA: | ||||||||||||
| EBITDA(1) | (268,311 | ) | (1,946,796 | ) | (1,917,051 | ) | (4,115,743 | ) | ||||
| Stock-based compensation | (76,918 | ) | 209,093 | 91,396 | 433,435 | |||||||
| Financing expenses | 17,017 | 15,550 | 18,395 | 241,367 | ||||||||
| Acquisition-related expenses | 16,000 | 41,609 | 32,000 | 108,552 | ||||||||
| Investor relations | 45,986 | 278,935 | 83,486 | 874,597 | ||||||||
| Loss (gain) on disposal of assets | - | - | - | (1,669 | ) | |||||||
| Realized gain on marketable securities | 743,218 | - | 482,821 | - | ||||||||
| Unrealized gain on marketable securities | (736,000 | ) | - | 149,016 | - | |||||||
| Loss (Income) from discontinued operations | - | 216,863 | - | 402,562 | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||||||
| $ | $ | |||||||||||
| Cash and cash equivalents | 2,573,692 | 2,540,764 | ||||||||||
| Restricted cash | 20,000 | 20,000 | ||||||||||
| Total current assets | 19,000,262 | 21,739,247 | ||||||||||
| Total assets | 22,549,239 | 25,263,812 | ||||||||||
| Total current liabilities | 23,484,876 | 27,137,517 | ||||||||||
| Total liabilities | 25,977,431 | 29,540,222 | ||||||||||
| Weighted average common shares outstanding (millions) | 86.4 | 69.0 | ||||||||||
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.
Defense Investor, Former McKinsey Partner Philip Rowland Added to Advisory Council
Plurilock also announces the appointment of defense investor Philip Rowland to the Company's Industry Advisory Council. Mr. Rowland served U.K. and European defense clients for seven years at McKinsey & Company, ultimately as a Partner, then spent over two decades in private equity backing security, cryptography, and defense companies, including one sold to a defense prime.
He is now a Partner at a European defense and security focused venture capital firm and an advisor to Vimy Forge, Canada's national defense accelerator.
Quarterly Filings
Management's Discussion and Analysis and Condensed Interim Consolidated Financial Statements and the notes thereto for the three and six months ended June 30, 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 and 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 August 25, 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/311552