Technology

We have written a 20-page Update Report on DATA Communications Management (DCM) after it released its Q3/2025 financials. DCM reported Q3/2025 revenue of $105.4 million, down 3.1% year-over-year, reflecting softer enterprise spending and Canada Post labour disruptions. Despite revenue pressure, operating discipline supported stable profitability, with Adjusted EBITDA of $12.3 million and a 15% reduction in SG&A expenses. Management highlighted growing traction in AI-enabled platforms, including contentcloud.ai and CCM360, with a solid pipeline into 2026. Net Debt was $80.6 million, with over $40 million in liquidity. We maintain our Buy rating but lower our one-year target price to $4.00 from $6.55. [more]

The advertising industry is undergoing a major transformation as Generative AI reshapes creative processes, campaign execution, and audience targeting. Market dynamics are shifting, with total online ad spend projected to grow significantly and new entrants gaining share against dominant players like Alphabet, Amazon, and Meta. Emerging platforms such as TikTok, Snap, and Spotify are attracting advertiser budgets, while Canadian ad tech firms, including EQ Works, Nextech3D.ai, Adcore, and Zoomd Technologies, are positioned to benefit from the evolving landscape. Agencies face disruption but remain relevant for strategic and brand-focused roles in a hybrid, AI-assisted future. [more]

Canada has outlined a national strategy to secure digital sovereignty and expand AI adoption. In speeches delivered in Montreal and Toronto, Minister Evan Solomon emphasized the risks of foreign jurisdiction over Canadian data and the need for sovereign compute infrastructure. The plan is structured around three pillars: capital, customers, and compute, with government procurement supporting domestic AI champions such as Cohere. Additional priorities include updating data privacy laws, strengthening trust, and retaining research talent. A 30-day AI Task Force will accelerate policy development, with a full national strategy expected by year-end. [more]

Palo Alto Networks (NASDAQ: PANW) has announced an agreement to acquire CyberArk Software (NASDAQ: CYBR) for approximately US$25 billion, marking its first entry into the identity security market. CyberArk shareholders will receive US$45 in cash and 2.2005 shares of Palo Alto Networks common stock, representing a 26% premium to the prior 10-day VWAP. The transaction implies an enterprise value of approximately US$24.6 billion, or 20.5x revenue, and is expected to be accretive to revenue growth and gross margin immediately, with free cash flow per share accretion projected in F2028. [more]

eResearch has initiated coverage on Turnium Technology Group (TTGI), a Canadian IT solutions company focused on delivering secure, scalable Technology-as-a-Service (TaaS) offerings to SMEs via global channel partners. TTGI operates through three integrated solution groups TNSI, Tenacious Networks (TNET), and Claratti. The report covers its evolving business model, recent financial results, and valuation framework. With multi-year SME contracts and a growing recurring revenue base, TTGI is positioned for margin expansion and international growth. Our 61-page report includes a detailed financial valuation and an investment thesis. We are initiating coverage with a Speculative Buy rating and a $0.25 target. [more]

Edgewater Wireless Systems (TSXV: YFI) developed Spectrum Slicing technology to address growing Wi-Fi congestion caused by the proliferation of connected devices. Its patented approach splits a single Wi-Fi channel into multiple streams, improving capacity, latency, and performance. Backed by successful pilots and strategic partnerships, Edgewater is releasing its next-generation solution and scaling production of its MLX 488 chip, integrating AI to optimize traffic. The Company’s IP value is estimated between $90 to $180 million, far above its current market cap. Positioned as a fabless semiconductor innovator, Edgewater is targeting enterprise, residential, and IIoT markets as Wi-Fi demands increase globally. [more]

Ontario has begun construction on Canada’s first small modular reactor (SMR), a $20.9B project led by Ontario Power Generation at its Darlington site. The build includes four GE Hitachi BWRX-300 units, with the first scheduled to come online in 2030. The SMRs aim to meet Ontario’s rising electricity demand and provide a case study for global nuclear investment. The government projects $38.5B in long-term GDP contribution and over 18,000 jobs. Execution risks remain, but Ontario is positioning itself as a nuclear leader. [more]

We have written a 9-page Update Report on DATA Communications Management (DCM) after it announced preliminary fiscal 2024 financial results, with revenue expected between $478M and $480M, slightly below prior estimates. Adjusted EBITDA is projected at $62M to $64M, in line with expectations. The Company also introduced a dividend program, including a special dividend of $0.20 per share and a regular quarterly dividend of $0.025 per share. Revenue was impacted by project timing shifts, the exit from low-margin accounts, and the Canada Post strike, but cost efficiencies from the Moore Canada Corporation integration supported profitability. Final results will be released on March 12, 2025. [more]