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Converge Technology Solutions Reports Financial Results for Q4 and FY 2024

Converge Technology Solutions Corp. has published its preliminary financial results for the fourth quarter of 2024 and the full fiscal year ending December 31, 2024. The company, which trades on the TSX under the symbol CTS, is known for its innovative IT solutions. A conference call is scheduled for March 6, 2025, where the leadership team will delve deeper into these preliminary results and answer questions from investors and analysts.

Q4 2024 Highlights

In Q4 of 2024, Converge is expecting to report gross sales of roughly $1.1 billion, indicating a modest increase of 2.5% year-over-year. However, revenue is projected to be about $680.8 million, marking a more significant growth rate of 4.6% over the previous year. Interestingly, gross profit is anticipated to decline slightly by 1.6% to around $178.6 million, and adjusted EBITDA will show a marginal increase of 3.0%, resulting in approximately $47.9 million. Cash generated from operations measured approximately $57 million, which represents an impressive 119% of adjusted EBITDA.

Despite these promising figures, the company expects a loss before income tax of approximately $21.2 million, primarily due to a considerable impairment loss tied to its investment in Portage CyberTech Inc., amounting to around $24 million.

Fiscal Year 2024 Summary

On a broader scale, Converge forecasts total gross sales for the fiscal year to reach around $4.1 billion, a modest improvement of 2.1% from the previous year. However, total revenue took a hit, with an expected decrease of 4.2% to approximately $2.6 billion year-over-year. This downturn also reflects a 1.6% drop in gross profit to about $691.4 million and a 1.7% decline in adjusted EBITDA to $167.3 million.

Cash flow from operational activities is projected at $269.4 million, which stands at an encouraging 161% of adjusted EBITDA. Despite these positive cash flow measures, the company anticipates a staggering loss before income taxes totaling approximately $200.5 million. This figure is partly attributed to a significant impairment loss in its German segment amounting to $176.1 million, in addition to $25.9 million in impairment losses from its investment in Portage.

Looking Ahead: Conference Call

Converge will be holding an extensive conference call on March 6th, 2025, at 8:00 AM EST, dedicated to elucidating these results. Participants can join through a webcast here or dial in using provided numbers for respective countries. The session will include a thorough breakdown of their preliminary results and future initiatives focusing on improving company performance.

About Converge Technology Solutions

Founded in 2017, Converge Technology Solutions Corp. aims to revolutionize IT solutions through human-centric innovations. They combine specialized expertise and global resources to deliver solutions that drive significant operational efficiencies. Their offerings include services and methodologies that enhance digital transformation, backed by analytics, artificial intelligence, and cybersecurity. Converge continues to enable various industries to innovate and realize meaningful outcomes through tailored IT solutions.

For ongoing updates, visit Converge's official site at convergetp.com.