Zedcor (ZDC) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenue of CAD 13.5 million ($13.5 million), up 84% year-over-year and 18% sequentially from Q1 2025.

• Adjusted EBITDA reached a record CAD 4.9 million ($4.9 million), up 83% year-over-year, with a strong margin of 36%.

• U.S. revenue comprised 32% of Q2 revenue, reflecting successful expansion and high utilization rates near 100%.

• Tower fleet expanded to 1,882 units, with 316 MobileyeZ towers deployed in Q2 and total fleet utilization above 90%.

• Significant U.S. expansion, with 13 branches (6 in Canada, 7 in the U.S.) and plans to double U.S. branches by 2026.

Financial highlights

• Six-month revenue ended June 30, 2025, was CAD 25 million ($25.0 million), up 85% year-over-year.

• Six-month adjusted EBITDA was CAD 9 million ($9.0 million, 34% margin), up from CAD 4.6 million in the prior year.

• Gross margin for Q2 2025 was CAD 8.5 million, or 63% of revenues.

• Net income for Q2 2025 was $460,000, down from $1.4 million in Q2 2024 due to one-time income in the prior year.

• Adjusted operating cash flow for Q2 2025 increased 103% year-over-year to CAD 4.4 million; adjusted free cash flow for Q2 2025 was $932,000.

Outlook and guidance

• U.S. EBITDA margins expected to catch up to Canadian levels as density increases, with Texas leading.

• Canadian revenue growth expected to continue at 10%-15% quarter-over-quarter, with minimal seasonality.

• Manufacturing output targeted to reach 50 towers per week by September 2025, with annual capacity of 1,200–1,400 towers.

• Plans to be within eight hours of any tower in North America by end of 2026.

• Strategic initiatives include supply chain control, economies of scale, and new product development based on customer needs.