26 slides from Data Communications Management's earnings presentation, May 12, 2026
Slide 1: Q1 2026 Report to Shareholders
Q1 2026 Report to Shareholders DATA Communications Management Corp. DCM – TSX | DCMDF – OTCQX May 12, 2026
Slide 2: Forward-looking Statements and Information Disclosure
Forward-looking Statements Information Disclosure Forward-looking Statements Non-IFRS Standards Measures Certain statements in this presentation constitute “forward-looking” statements that involve known and This presentation includes certain non-IFRS measures as supplementary information. In additi
Slide 3: We delivered results generally in line with our expectations
Q1 2026 We delivered results generally in line with our expectations #1. Revenue growth: -5% vs. YA; declines decelerating, exited quarter positively #2. New business development: +40 new logos, $4M of annualized revenue #3. Technology services: +7.4% ($6.9M); Technology hardware: +64.3% ($3.1M) #4.
Slide 4: #1. Total revenues in line with plan, trending positively as quarter progressed
#1. Total revenues in line with plan, trending positively as quarter progressed $129.3 $125.8 $123.7 $116.2 $117.4 $113.8 $108.7 $105.4 $107.5 Q1 2026 (in $millions) Revenue -5.0% vs. Q1 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2024 2024 2024 2024 2025 2025 2025 2025 2026 4
Slide 5: #2. Capturing growth with over +40 new logos, +$4M of expected annualized revenue
#2. Capturing growth with over +40 new logos, +$4M of expected annualized revenue 5
Slide 6: #3. Tech-enabled services and hardware grew 20.4% in aggregate to $10.0M
#3. Tech-enabled services and hardware grew 20.4% in aggregate to $10.0M, 8.5% of total revenues Technology-enabled Technology-enabled subscription services hardware solutions and fees $6.9M revenues $3.1M revenues +$0.5M / 7.4% +$1.2M / 64.3% vs. Q1 2025 vs. Q1 2025 6
Slide 7: #4. Adjusted EBITDA a record high of $19.1M and 16.3% of revenues
#4. Adjusted EBITDA a record high of $19.1M AND 16.3% of revenues $25.0 40.0% Q1 2026 Adjusted $20.0 $18.7 $18.6 $19.1 EBITDA Adjusted EBITDA (in $millions) +$0.5M 30.0% $16.9 Adjusted EBITDA Margin $16.6 $15.8 $15.0 $12.6 $12.3 $12.8 vs. Q1 2025 20.0% $10.0 Adjusted EBITDA 14.4% 15.0% 14.6% 16.3% M
Slide 8: #5. Net debt down -55% since MCC acquisition
#5. Net debt1 down -55% since MCC acquisition, net debt to Adjusted EBITDA (net of lease payments)1 down 1.0x Net Debt and Net Debt to pro forma Adjusted EBITDA2 $160.0 $145.7 10.0x Net debt 9.0x $120.0 8.0x 7.0x $66.4M Net Debt (in $millions) $90.8 -27.0% 6.0x $85.8 $78.9 $77.1 $80.0 5.0x $66.4 4.0
Slide 9: #6. Adjusted net income of $5.8M up 11.0% vs. YA
#6. Adjusted net income of $5.8M up 11.0% vs. YA, Adjusted net margin of 4.9% a recent high $6.5 Q1 2026 Adjusted net $5.8 income $5.2 4.2% 3.4% 4.9% +$0.6M $4.0 $4.0 $3.9 vs. Q1 2025 2.2% 2.2% 3.2% $2.6 -0.2% $2.6 0.1% 0.7% Adjusted net income margin $1.5 $0.7 4.9% / +70bps -$0.2 $0.1 vs. Q1 2025 Q
Slide 10: #7. Free cash flow +$18.1M vs. YA
#7. Free cash flow +$18.1M vs. YA +$10.7M FCF in Q1 2026 $14.3 $10.7 -$7.4M FCF in Q1 2025 -$4.2 -$7.4 CFO Net Capex Lease Prin. FCF CFO Net Capex Lease Prin. FCF Free cash flow (or “FCF”) is a non-IFRS accounting measure. We define FCF as: Total cash generated from operating activities (after chang
Slide 11: #8. SG&A -$3.7M lower vs. YA, 16.9% of revenues
#8. SG&A -$3.7M lower vs. YA, 16.9% of revenues matching recent low in Q4 2024 SG&A expenses of $19.8M Active employee count down 15.4% vs. $23.5M YA -22.6% since MCC acquisition $30.0 30.0% 2,000 1,872 SG&A Expenses (in $millions) (bar) SG&A as a % of Revenue (line) $25.0 $24.1 $23.5 1,732 $22.5 1,
Slide 12: #9. Adjusted EPS (basic) up 22% vs. YA
#9. Adjusted EPS (basic) up 22% vs. YA Adjusted EPS (basic) $0.11 $0.11 up 22% $0.09 from $0.09 $0.07 $0.07 $0.05 $0.05 $0.10 $0.09 $0.07 $0.07 Adjusted EPS (diluted) $0.04 $- $- $0.04 $- $- $0.01 $0.01 $0.10 up 11% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 from $0.09 A
Slide 13: #10. Returned $1.7M of capital to shareholders in the quarter
Quarterly dividend $0.025 cash 1 per share Repurchased #10. Returned $1.7M of capital to 157,500 common shares in Q1 2026 shareholders in the quarter Dividend yield 6.2% 2 1. Declared on March 11, 2026; paid on April 30, 2026 to shareholders of record on April 16, 2026. 2. Implied dividend yield as
Slide 14: 2026 Priorities & Outlook
2026 Priorities & Outlook
Slide 15: 2026 Priorities
2026 Priorities Maintain high revenue Improve gross margin retention rate and execute through business mix, on new business operational efficiencies and development activities digital acceleration Generate strong cash flow Leverage the current market for continued capital returns environment to be a
Slide 16: 2026 Outlook
2026 Outlook Early signs of market stabilization ▪ Demand trends are beginning to stabilize ▪ Most business units returning to growth ▪ New business activity remains solid We remain focused on execution ▪ Macro related uncertainty remains ▪ Canada Post vote; CUSMA trade negotiations; elevated fuel c
Slide 17: Well Positioned in Current Environment
Well Positioned in Current Environment Strong operating performance in uncertain environment Solid cash flow generation High new business development activity levels Track record of execution Positioned to pursue opportunistic M&A Experienced senior leadership team Well-capitalized with excess avail
Slide 18: Questions and Answers
Questions and Answers
Slide 19: Contact Information
For more information, please visit www.datacm.com or for investor, media and corporate development inquiries reach out to: Contact Richard Kellam James Lorimer Information President & CEO rkellam@datacm.com +1 (416) 451-1117 Chief Financial Officer jlorimer@datacm.com +1 (905) 494-4101 DCM – TSX | D
Slide 20: Q1 2026 Summary P&L's
Q1 2026 Summary P&L’s
Slide 21: Q1 2026 Summary Financial Results
Q1 2026 Summary Financial Results Selected financial information Q1 2026 Q1 2025 Revenue $117.4 $123.7 Gross profit $33.1 $36.3 Gross margin (%) 28.2% 29.3% SG&A (incl. R&D expenses) $20.9 $24.6 Restructuring expenses $1.4 $0.0 Quarter 1 NFV (gains)/losses on financial liabilities ($0.1) $0.1 Ended
Slide 22: Non-IFRS Accounting Standards Measures
Non-IFRS Accounting Standards Measures
Slide 23: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation The following table provides reconciliations of net (loss) income to EBITDA and of net (loss) income to Adjusted EBITDA for the periods noted, following adoption of “net fair value (gains) losses on financial liabilities at fair value through profit or loss”
Slide 24: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation The following table provides reconciliations of net income to Adjusted net income and a presentation of Adjusted net income per share for the periods noted. See “Non-IFRS Accounting Standards measures” section in our most recent interim and annual filings on SEDAR+
Slide 25: Thank you
Thank you
Slide 26: Slide 26