Zedcor Inc. Reports Record Q3 2026 Revenue of $26.7 Million and Adjusted EBITDA of $10.3 Million

Record revenue and EBITDA, but net losses persist amid heavy U.S. expansion and investment.

What the company is saying

Zedcor Inc. is emphasizing record quarterly revenue of $26.7 million for Q3 2026, a 67% year-over-year and 18% quarter-over-quarter increase, attributing growth to higher MobileyeZ™ security tower production, strong utilization, and expanding U.S. operations. The company highlights record Adjusted EBITDA of $10.3 million, up 80% YoY, and an improved Adjusted EBITDA margin of 39%, citing operating cost controls and economies of scale. Management, led by President and CEO Todd Ziniuk, frames the net loss of $3.3 million as a deliberate result of front-loaded investments in fleet, facilities, and staff to support long-term growth, especially in the U.S. The narrative stresses continued strong demand, major customer wins—including a 50-tower deployment for a U.S. convenience store chain and a renewed three-year contract with a Canadian retailer—and the ability to serve customers nationwide. Zedcor also points to expanded credit facilities, now totaling $100 million with a $50 million accordion, and a $30.5 million equity raise, as providing non-dilutive capital to accelerate fleet deployment. The tone is confident, repeatedly asserting that current losses are a function of growth investments and that operating leverage will drive future profitability.

What the data suggests

The disclosed figures show Q3 2026 revenue at $26.7 million, up 67% YoY and 18% QoQ, with Adjusted EBITDA at $10.3 million, up 80% YoY and 18% QoQ, and a margin of 39%. U.S. revenue was $14.8 million, up 156% YoY, now representing 55% of total revenue, and U.S. gross margin improved to 55%. Year-to-date U.S. revenue reached $36.6 million, already exceeding the full year 2025 total of $21.2 million. Despite these operational gains, the company reported a Q3 net loss of $3.3 million and a nine-month net loss of $5.9 million, reversing a $1.2 million profit in the prior year period. The loss is driven by $9.9 million higher depreciation, $9.9 million higher G&A, $7.0 million in stock-based compensation, and $2.0 million in financing costs, all tied to rapid expansion. Cash flow from operations was $15.8 million for the nine months, but investing outflows totaled $68.9 million, funded by $53.9 million in new financing. Working capital remains negative at -$3.0 million. The company manufactured 617 towers in Q3 and 1,708 year-to-date, with production capacity at 45–50 towers per week. Customer count surpassed 1,000, and major retail and logistics contracts were secured. The data supports strong top-line and operational momentum but underscores that profitability is not yet achieved due to heavy investment.

Analysis

The announcement is upbeat, emphasizing record revenue and EBITDA growth, rapid U.S. expansion, and operational milestones. However, despite strong top-line and operational progress, the company reported a net loss for both the quarter and year-to-date, driven by sharply higher G&A, depreciation, stock-based compensation, and finance costs. The narrative leans heavily on future growth and efficiency gains, with multiple forward-looking statements about demand, recurring revenue, and operational leverage, but profitability remains elusive in the current period. The company has undertaken significant capital outlays—expanding credit facilities and raising equity—yet the benefits are not immediate, as evidenced by negative working capital and ongoing net losses. While the operational and revenue momentum is real, the gap between narrative and realised financial value is material, and the tone somewhat overstates the near-term investment case given the lack of current profitability.

Risk flags

• ●Sustained net losses and negative working capital signal ongoing financial risk. Despite record revenue and EBITDA, Zedcor posted a Q3 net loss of $3.3 million and a nine-month loss of $5.9 million, with current liabilities exceeding current assets by $3.0 million. This means the company is reliant on external financing to fund its growth and meet obligations.
• ●High capital intensity and rapid expansion increase execution risk. The company invested $68.9 million in the first nine months of 2026, funded by $53.9 million in new financing and an expanded $100 million credit facility. If revenue growth or utilization falters, Zedcor could face liquidity constraints or be forced to raise additional capital on less favorable terms.
• ●Profitability is contingent on achieving operating leverage and cost control. Management attributes current losses to front-loaded investments, but there is no concrete guidance for when net income will turn positive. If fixed costs and G&A do not scale as anticipated, or if competitive or market pressures arise, the path to profitability could be delayed.
• ●Customer concentration and contract renewal risk remain. While the company highlights major wins and a growing customer base, large deployments and renewals with key retailers are critical to revenue visibility. Any loss or delay in these contracts could materially impact results.
• ●Macroeconomic or sector-specific downturns could impact demand for security services. The company’s growth strategy is predicated on continued strong demand in the U.S. and Canada; a slowdown in construction, retail, or logistics could reduce tower utilization and revenue.

Bottom line

Zedcor Inc. is delivering rapid revenue and EBITDA growth, driven by aggressive U.S. expansion and increased security tower production, but remains unprofitable due to heavy investment in fleet, facilities, and staff. The company’s operational momentum is clear, with U.S. revenue more than doubling and major customer contracts secured, yet net losses and negative working capital highlight ongoing financial risk. Management’s narrative is credible in explaining the sources of loss, but investors should recognize that profitability depends on successful scaling and cost control, with no explicit timeline for a return to positive net income. The expanded credit facility and recent equity raise provide liquidity for further growth, but also increase leverage and financial exposure. The most important takeaway is that Zedcor is in a high-growth, high-investment phase with strong top-line results, but the investment case relies on the company’s ability to translate scale into sustainable profitability over the next several quarters.

Announcement summary

(TSXV:ZDC) Zedcor Inc. reported record quarterly revenue of $26.7 million for the three months ended September 30, 2026, representing a 67% year-over-year increase and an 18% quarter-over-quarter rise, driven by a higher count of MobileyeZ™ security towers, strong utilization, and increased tower production. Adjusted EBITDA for Q3 2026 was $10.3 million, up 80% YoY and 18% QoQ, with an Adjusted EBITDA margin of 39%, improved from 36% in the prior-year period. The company manufactured 617 MobileyeZ™ security towers during the quarter, bringing year-to-date production to 1,708 units, and grew its U.S. fleet to 2,699 towers. Zedcor expanded its retail vertical by entering an agreement with a leading national convenience store retailer to deploy 50 additional towers across 20 U.S. states and renewed a three-year contract with a leading Canadian home improvement retailer. U.S. revenue in Q3 2026 was $14.8 million, up 156% YoY, accounting for approximately 55% of total quarterly revenue, and U.S. gross margin improved to 55% from 53% in the prior-year period. For the first nine months of 2026, U.S. revenue reached $36.6 million, surpassing the full fiscal year 2025 U.S. revenue of $21.2 million. The company reported a net loss of $3.3 million for the quarter, attributed to increased G&A, depreciation, stock-based compensation, and finance costs associated with growth investments. For the nine months ended September 30, 2026, Zedcor recorded a net loss of $5.9 million, compared to net income of $1.2 million in the prior year, with the swing driven by $9.9 million higher depreciation, $9.9 million higher G&A, $7.0 million in stock-based compensation, and $2.0 million in financing costs. On February 3, 2026, Zedcor expanded its credit facility to $75.0 million, and on February 11, 2026, completed a bought deal public offering of 5,084,000 common shares at $6.00 per share for gross proceeds of $30.5 million. Subsequent to quarter end, on October 13, 2026, the company announced an expanded $100.0 million revolving credit facility with a $50.0 million uncommitted accordion. The company consolidated its Houston head office and manufacturing operations into a larger facility and expanded its centralized live monitoring team in Houston. Production capacity is currently 45–50 towers per week, with the ability to increase without significant capital expenditures. Zedcor surpassed 1,000 customers, with significant wins in logistics/warehousing and residential home building segments across the USA and Canada. The company fully deployed DirectToDispatch across its monitoring center operations, improving law enforcement responsiveness. Cash flow from operating activities for the nine months ended September 30, 2026, was $15.8 million, cash used in investing activities was $68.9 million, and cash from financing activities was $53.9 million. As of September 30, 2026, current assets were $28.5 million, current liabilities were $31.5 million, and working capital was negative $3.0 million. The company continues to focus on deploying towers in markets with latent demand, improving cost efficiency, and expanding its enterprise pipeline in the U.S.

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