Business
Pivotree Announces First Quarter 2026 Results
Consecutive Quarters of Positive Adjusted EBITDA and Positive Free Cash Flow as Pivotree Accelera...
About this update from Pivotree, Inc.
Pivotree Announces First Quarter 2026 ResultsConsecutive Quarters of Positive Adjusted EBITDA and Positive Free Cash Flow as Pivotree Accelerates AI-Enabled Service Transformation TORONTO, ON / ACCESS Newswire / May 14, 2026 / Pivotree Inc. (TSXV:PVT) ("Pivotree" or the "Company"), a leader in frictionless commerce solutions, today reported financial results for the three month period ended March 31, 2026. All amounts are expressed in Canadian dollars unless otherwise stated."Q1 reflects the disciplined transition we expected: solid profitability, positive free cash flow, and our sixth consecutive quarter of positive Adjusted EBITDA," said Bill Di Nardo, CEO of Pivotree. "Client conversations have shifted from ‘should we invest in AI?' to ‘how do we deploy AI against outcomes on top of our data?' This is where our Real Intelligence (RI) and AI capabilities intersect, and it is reshaping how we pitch, contract, and deliver."Pivotree also announced today that it has released a letter to shareholders from Bill Di Nardo, CEO. The letter can be accessed from the Company's website at investor.pivotree.com and filed on SEDAR at www.sedar.com.First Quarter 2026 Financial Highlights(All figures are in Canadian dollars and all comparisons are relative to the three-month period ended March 31, 2025 unless otherwise stated):Net income of $0.6 million compared to net income of $0.2 million for the prior year period, marking the fifth consecutive quarter of positive net income.Adjusted EBITDA1 of $1.2 million (8.9% margin), compared to Adjusted EBITDA1 of $2.0 million (10.3% margin) for the prior year period. The sixth consecutive quarter of positive Adjusted EBITDA demonstrates the durability of operating discipline as the Company transitions its revenue mix toward AI-enabled services.Total revenue of $13.9 million, a decline of 27.6% (24.9% in constant currency) versus Q1 2025, driven primarily by the continued planned wind-down of Legacy Managed Services (LMS) and timing delays in Professional Services project starts, partially offset by MIPS growth:Managed and IP Solutions (MIPS) Revenue increased 7.9% to $4.0M in Q1 2026, from $3.7M in Q1 2025, driven by increased transactional SKU volumes delivered to customers. MIPS has now grown year-over-year for two consecutive quarters.Legacy Managed Services (LMS) Revenue declined 52.3% to $2.1M in Q1 2026, fr...