SSC Security Services (SECU) Q3 2025 earnings summary

Executive summary

• Public holding company acquiring and growing cyber, physical, and electronic security firms across Canada, with 3,000 employees as of June 2025.

• Achieved strong third quarter results with improved gross margins and higher adjusted EBITDA year-over-year.

• Transformative acquisitions since 2021, including Logixx Security, have driven revenue to approximately $110 million.

• Managed by highly aligned owner/operators with significant insider ownership and a consistent dividend record.

• Maintained a debt-free balance sheet and strong liquidity position.

Financial highlights

• Q3 2025 revenue was $30.2 million, up 1.7% from $29.7 million in Q3 2024, driven by organic growth.

• Gross profit increased 12.1% year-over-year to $5.3 million, with gross margin rising to 17.5% from 15.9%.

• Adjusted EBITDA for Q3 2025 was $1.45 million, up 14.3% year-over-year; adjusted EBITDA per share rose to $0.08.

• Adjusted net income for the quarter was $0.8 million ($0.04 per share), up from $0.7 million ($0.04 per share) last year.

• Cash and cash equivalents stood at $9.6 million, with working capital of $25.4 million at quarter-end.

Outlook and guidance

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

• Expects continued growth in demand for integrated security services and solutions.

• Plans to maintain a strong balance sheet, pursue further acquisitions, and continue consistent dividend payments.

• Legacy assets are expected to convert to cash within the next year, supporting business expansion.

• Will continue capital returns via dividends and maintain a focus on strong margins and adjusted EBITDA per share.