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Converge Technology Solutions Releases Preliminary Q4 and Fiscal Year 2024 Results

On February 10, 2025, Converge Technology Solutions Corp., a leading provider of IT and cloud solutions, announced its preliminary financial results for the fourth quarter and the fiscal year ending December 31, 2024. These results indicate a mixed performance, with some positive growth in revenue and overall sales, yet challenges in profitability. The company plans to elaborate on these results during a conference call scheduled for March 6, 2025, at 8:00 AM EST.

Preliminary Financial Highlights

Q4 2024 Results:

• - Gross Revenue is projected to reach approximately $1.1 billion, marking a year-over-year increase of 2.5%.
• - Revenue anticipated at around $680.8 million, up by 4.6% compared to the previous year.
• - Gross Profit expected to be approximately $178.6 million, reflecting a 1.6% decrease from the prior year.
• - Adjusted EBITDA likely around $47.9 million, an increase of 3.0% year-over-year.
• - Operating Cash Flow estimated to be $57 million, equating to 119% of adjusted EBITDA.
• - Pre-Tax Loss predicted at around $21.2 million, a significant rise driven mainly by a substantial impairment charge related to its investment in Portage CyberTech Inc.

Fiscal Year 2024 Results:

• - Gross Revenue is expected to approximate $4.1 billion, an increase of 2.1% from 2023.
• - Revenue is forecasted to decline to about $2.6 billion, a decrease of 4.2% year-over-year.
• - Projected Gross Profit is around $691.4 million, showing a 1.6% drop compared to the last fiscal year.
• - Adjusted EBITDA for the year is expected to be approximately $167.3 million, reflecting a 1.7% decrease.
• - Expected Operating Cash Flow of approximately $269.4 million, which equals 161% of adjusted EBITDA.
• - Projected Pre-Tax Loss is expected to reach around $200.5 million, primarily due to the impact of impairment charges at its German segment and the Portage investment.

These preliminary results are subject to adjustment and must undergo the approval process by the Company’s management and Board before finalizing the financial statements.

Upcoming Conference Call Details

Converge will host a conference call on March 6, 2025, at 8:00 AM EST to discuss these results in detail. This session will include a presentation of the complete financial outcomes and end with a Q&A segment, allowing stakeholders to engage directly with the leadership team.

To participate, interested parties can access the live audio webcast here. Alternative dial-in options are also available for those who prefer telephonic access. Notably, the company encourages participants to connect at least 15 minutes prior to the start time to facilitate any necessary technical preparations.

About Converge Technology Solutions

Founded with a vision to reshape how organizations perceive and implement IT, Converge Technology Solutions has positioned itself as a thought leader since 2017. The company focuses on delivering tailored, outcome-driven IT solutions by embracing advanced analytics, artificial intelligence, cloud platforms, and cybersecurity. Their service model, dubbed AIM (Advise, Implement, Manage), ensures that solutions are customized to meet customer needs effectively.

Converge continues to transform enterprise operations, fostering innovation and productivity across various sectors. For more information about the company and their solutions, visit their website at convergetp.com.