#United States #Cupertino #Boardwalktech #digital ledger #software solutions

Boardwalktech's Financial Overview for Q2 Fiscal 2026

Boardwalktech Software Corp. (TSXV: BWLK, OTCQB: BWLKF), recognized as a pioneering enterprise software solutions provider through its digital ledger platform, announced its financial results for the second quarter of fiscal 2026, concluding September 30, 2025. This report illustrates the company's financial performance while outlining strategies for future growth amid current challenges.

Financial Highlights

During Q2 FY26, Boardwalktech achieved a revenue of $1 million, reflecting a 4% increase compared to the previous quarter's revenue of $0.9 million. However, this figure represents a significant decrease of 25% in comparison to the $1.3 million recorded in the same quarter of the previous fiscal year (Q2 FY25). This revenue decline is primarily attributed to the non-renewal of contracts by two notable customers, which impacted overall earnings significantly.

As of September 30, 2025, the company's annual recurring revenue (ARR) stood at $3.8 million. ARR is crucial as it provides an insight into the expected annual revenue derived from ongoing subscription licenses and recurring services, offering a clearer forecast of future profits compared to previous quarterly revenues.

Boardwalktech’s gross margin for this quarter was reported at 86.7%, up from 83.5% in Q1 FY26, although slightly lower than the 88.7% margin achieved in Q2 FY25. The improved margin reflects efficient cost management in conjunction with operational adjustments made during the period.

The adjusted EBITDA for the company resulted in a loss of $(0.4) million, indicating a notable improvement of 44% from the loss of $(0.6) million in the prior quarter, while remaining consistent with the previous fiscal year's results. Moreover, the non-IFRS net loss for Q2 FY26 was $(0.4) million ($0.01 per share), showcasing a reduced loss compared to $(0.7) million in Q1 FY26 and $(0.5) million in Q2 FY25.

The net loss has shown a similar trend, with Q2 FY26 recording a $(0.5) million loss ($0.01 per share), an improvement from the $(0.9) million loss in the preceding quarter.

Cost Management and Future Outlook

Despite a challenging revenue environment, Boardwalktech's strategic adjustments and recent cost-cutting measures have contributed to a cash position of $0.04 million and increased collection avenues amounting to $0.6 million. This was facilitated by a significant reduction in the operational cash burn rate, improving by $1.6 million year-over-year prior to implementing cost savings in August 2025.

The outstanding debt stood at $2.6 million, reorganized under current liabilities according to IFRS requirements, although the maturity date for this debt extends to March 2027.

CEO Andrew T. Duncan highlighted the company's focus on leveraging its Velocity and digital ledger successes to encourage customer expansion and renewals through enhanced deployments, projecting positive revenue growth for the latter half of FY26. The ongoing execution of late-stage licensing agreements is viewed as a pivotal contributor towards achieving these growth targets alongside professional services that are expected to add value.

Boardwalktech's innovative efforts, particularly in fostering its AI-enhanced capabilities, signal promising opportunities for ARR growth moving forward. This, combined with the completion of upgrade projects, should bolster professional service revenues significantly in the near future, aligning the company closer towards achieving EBITDA break-even.

About Boardwalktech Software Corp.

Founded by a team dedicated to transforming data management, Boardwalktech operates a patented Digital Ledger Technology Platform. This uniquely designed platform is favored by Fortune 500 companies to manage extensive structured and unstructured data collaboratively. The platform enables businesses to work on shared data seamlessly, ensuring data fidelity while integrating fully with existing enterprise systems across various devices. Headquartered in Cupertino, California, Boardwalktech extends its operations globally, including India and North America. For further information about Boardwalktech's innovative solutions and offerings, please visit www.boardwalktech.com.