SSC Security Services (SECU) Q1 2025 earnings summary

Executive summary

• Public holding company focused on acquiring and growing cyber, physical, and electronic security businesses across Canada, maintaining a strong, debt-free balance sheet.

• Expanded from first acquisition in 2021 to approximately 3,000 employees nationwide.

• Emphasizes value creation through recurring revenue, consistent dividends, and active share buybacks.

Financial highlights

• Revenue for Q4 2024 and Q1 FY2025 was $29.2 million, down 5.5% year-over-year, mainly due to fewer temporary contracts, but recurring revenues remain strong.

• Gross profit increased to $5.0 million, with gross margin rising to 17.1% from 15.7% year-over-year, reflecting operational efficiencies.

• Adjusted EBITDA for Q4 2024 was $1.17 million, and for Q1 FY2025 was $1.2 million ($0.06 per share), consistent with the prior twelve-month average.

• Comprehensive net loss of $0.1 million (loss of $0.01 per share) in Q1 FY2025 compared to net income of $0.1 million in Q1 FY2024.

Outlook and guidance

• Targets 10–15% annual adjusted EBITDA growth per share and anticipates continued demand for integrated security services.

• Plans to convert legacy assets to cash for business expansion and maintain strong margins and liquidity.

• Maintains a consistent quarterly dividend and positions for further growth via acquisitions.