Boardwalktech's Q1 FY2026 Results: A Mixed Bag for Digital Ledger Company

Boardwalktech Software Corp. Reports Q1 FY2026 Financial Results

On August 28, 2025, Boardwalktech Software Corp. (TSXV: BWLK, OTCQB: BWLKF), a prominent player in the digital ledger space, released its financial results for the first three months of fiscal year 2026 ending June 30, 2025. Despite navigating challenges, Boardwalktech remains steadfast in its mission to enhance enterprise solutions through its cutting-edge technology.

Financial Performance Overview

The company reported total revenue of $0.9 million for Q1 FY26, representing a 6% decline quarter-over-quarter from $1.0 million in Q4 FY25 and a significant 28% decrease compared to $1.3 million reported in Q1 FY25. This decline is primarily attributed to the non-renewal of contracts with two significant customers previously announced by the corporation.

In terms of annual recurring revenue (ARR), as of March 31, 2025, Boardwalktech posted an ARR of $3.8 million, reflecting projected revenues based on existing subscription licenses and some recurring services.

The gross margin for Q1 FY26 was 83.5%, down from 85.3% in Q4 FY25 and 87.9% in Q1 FY25. The decrease can be linked to lower revenue levels; however, the company anticipates that gross margins will stabilize at approximately 90% in the future.

Total adjusted operational expenses (excluding share-based payments and depreciation) for the quarter came to $1.4 million, which is a reduction from $1.6 million in Q4 FY25 and $1.5 million from the same period last year. These savings are a direct result of Boardwalktech’s ongoing cost management strategies.

Adjusted EBITDA reflected a loss of $(0.6) million—showing signs of improvement compared to $(0.8) million in Q4 FY25 and $(0.4) million in Q1 FY25. Non-IFRS net loss was recorded at $(0.7) million, equating to $(0.01) per basic and diluted share, which is an improvement from $(0.9) million in the previous quarter.

In alignment with this, the net loss for Q1 FY26 was $(0.9) million, or $(0.01) per share, marking an enhanced performance as compared to the $(1.1) million loss reported in Q4 FY25.

Strategic Directions and Initiatives

Boardwalktech’s CEO, Andrew Duncan, expressed optimism on the company’s strategic direction. He stated, "Despite the prolonged timelines in sales conversions attributed to external factors such as tariff regulations and compliance adjustments in our financial services sector, our pipeline continues to be robust. We anticipate closing multiple large deals soon, fostering sustainable growth for FY2026 and beyond."

Duncan acknowledged that significant cost-saving measures were implemented successfully, projecting an additional $0.7-$0.8 million in savings over the next year. This comes on the heels of savings accumulated last year, which exceeded initial expectations without jeopardizing core operations.

The company is also focusing on product innovation. They have integrated artificial intelligence capabilities into their products, notably through the Boardwalk AI Agent. This development aims to enhance user experience and broaden the scope of offerings in their financial services sector.

Management Changes and Impact

In a notable shift within the company’s leadership, Charlie Glavin, previously the Chief Financial Officer and Director, announced his resignation, effective September 5, 2025. Over his seven-year tenure, Glavin was instrumental in evolving Boardwalktech's revenue model and directing financial strategies. He expressed confidence in Boardwalktech's potential and plans to remain a shareholder while pursuing new opportunities.

Conclusion

As Boardwalktech navigates through turbulent financial waters in Q1 FY26, it remains committed to tapping into the potential of its Digital Ledger Technology Platform, which is already in use by several Fortune 500 companies. Boardwalktech is poised for growth, with innovative solutions transforming enterprise information management and positioning them for accelerated revenue generation in upcoming quarters. Stakeholders and investors will be keenly observing how the company will leverage its pipeline and innovative strategies moving forward.