equity research

DATA Communications Management (TSX: DCM | OTC: DCMDF) reported record Q1/2026 Adjusted EBITDA of $19.1 million despite a 5.0% Y/Y revenue decline. The Company benefited from disciplined cost management, positive free cash flow of $10.7 million, and a 27.0% reduction in net debt. Technology revenues increased 20.4% to $10.0 million and more than 40 new customer logos were added during the quarter. We maintain a Buy rating while lowering the one-year target price to $3.90 from $4.00. [more]

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]