SSC Security Services (SECU) Q2 2025 earnings summary

Executive summary

• Operates as a public holding company acquiring and growing cyber, physical, and electronic security firms across Canada, with 3,000 employees nationwide.

• Q2 2025 saw improved gross margins and consistent adjusted EBITDA despite an 8.9% year-over-year revenue decline due to fewer temporary contracts.

• Recurring revenue base continues to grow profitably, with a focus on operational management and cost control.

• Completed transformative acquisitions since 2021, notably Logixx Security, boosting annual revenue to ~$110 million.

• Managed by experienced owner-operators with high insider ownership and a consistent dividend record.

Financial highlights

• Quarterly revenue for Q2 2025 was $27.7 million, down 8.9% year-over-year from $30.4 million, reflecting seasonality and fewer short-term contracts.

• Gross margin improved to 16.1% from 15.2% year-over-year; six-month margin at 16.3% vs. 15.5%.

• Adjusted EBITDA for Q2 2025 was $1.0 million ($0.06/share), down from $1.1 million ($0.06/share) in Q2 2024.

• Comprehensive net income was $0.0 million ($0.00/share) vs. $0.7 million ($0.03/share) last year; adjusted net income was $0.4 million ($0.02/share) vs. $0.01 million ($0.00/share).

• Recurring monthly contracted revenues are a key focus, supporting predictable revenue streams.

Outlook and guidance

• Anticipates continued demand for integrated security services and potential growth via disciplined acquisitions.

• Targets 10–15% annual adjusted EBITDA growth per share.

• Plans to convert legacy assets to cash over the next year to fund business expansion.

• Maintains a no-debt policy and aims for consistent dividend payments.

• Will maintain minimal to no debt, focus on strong margins, and continue dividends and share buybacks.