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Continued profitability and strengthening operating cash flow through the first half of FY27 support investment in Mitel Performance Analytics (MPA) growth and the pursuit of new high-value innovation opportunities.
Strengthened operating cash flow in Q2 FY27, reflecting the Company’s leaner operating model and continued financial discipline.Profitable for the third sequential quarter, reflecting a turnaround compared to the prior year, establishing a foundation for investment in growth initiatives.Advanced product innovation and ideation initiatives in Q2 FY27, using AI-augmented development to accelerate prototyping and software delivery at lower cost. Deepening integration with Mitel’s innovation and product teams to align the MPA roadmap with Mitel’s strategy, including support for Mitel Workforce Experience (WX) and AI-driven insights that position MPA as a proactive service assurance solution, detecting and enabling resolution of communications issues before they affect users.Advanced joint growth initiatives with Mitel, including co-developing new packaging and go-to-market models for MPA, and strengthening ecosystem presence through collaboration at Mitel events.
OTTAWA, ON, Nov. 12, 2026 /CNW/ — Martello Technologies Group Inc., (“Martello” or the “Company”) (TSXV: MTLO), a provider of proactive service assurance solutions for unified communications and collaboration (UCC) systems, today released financial results for the three months ended September 30, 2026.
“In the second quarter of FY27, Martello continued to focus on execution of its strategic priorities”, said Jim Clark, Chief Executive Officer of Martello. “We advanced joint initiatives with Mitel to expand how MPA is packaged and offered to partners and customers and progressed new AI capabilities for MPA; we also continued to validate targeted market opportunities identified through our ongoing discovery framework. We’re significantly advancing AI integration in development, resulting in faster cycles with excellent quality. Our strengthening positive operating cash flow and a leaner operating model provides resources to grow our investment in product innovation and development cycle time. We remain focused on building long-term shareholder value through disciplined execution, targeted growth investments and continued operational efficiency”.
“Martello is shifting from transformation to building for growth”, said Terence Matthews, Chairman of Martello. “Reliable communications are increasingly critical for organizations, and the Company’s deep alignment with Mitel together with its ongoing discovery practice places it at the center of that need. The Board is confident in the disciplined approach and believes the combination of a solid financial foundation and a focused strategy positions Martello to create long-term value for shareholders”.
Financial Highlights
September 30,
September 30,
September 30,
September 30,
(in 000’s)
2026
2025
2026
2025
(Three months ended)
(Six months ended)
Sales
$
2,814
2,999
5,684
6,087
Cost of Goods Sold
330
466
651
927
Gross Margin
2,483
2,533
5,032
5,160
Gross Margin
%
88.3 %
84.5 %
88.5 %
84.8 %
Operating Expenses
1,803
9,611
3,554
14,140
Income (Loss) from operations
680
(7,078)
1,479
(8,980)
Other expense
(509)
(374)
(915)
(604)
Income (Loss) before income tax
171
(7,452)
563
(9,584)
Income tax expense
(4)
(2)
(4)
(2)
Net income (loss)
168
(7,455)
560
(9,586)
Total Comprehensive Income (Loss)
$
255
(7,688)
690
(9,621)
EBITDA (1)
$
660
(6,517)
1,534
(7,672)
Adjusted EBITDA (1)
$
869
(759)
1,751
(1,953)
(1) Non-IFRS measure. See “Non-IFRS Financial Measures”.
Q2 FY27 Financial Highlights
Revenue was $2.81 million in Q2 FY27, representing a 6% decrease compared to $3.00 million in the same period of the prior year. The decline was primarily due to lower renewal rates on sunsetting legacy product offerings and customer churn in Vantage DX within the Modern Workplace Optimization (MWO) business segment, partially offset by an increase in the Mitel business segment revenue. Revenue from the Mitel business segment increased by 12% to $1.66 million in Q2 FY27 compared to $1.49 million in the same period of the prior year. The increase was driven by pricing adjustments and growth in subscriptions across certain Mitel product offerings, partially offset by the discontinuation of certain Mitel products that incorporated MPA. As Mitel and Martello negotiate a new contract, the companies are exploring new go-to-market models that represent potential mutual growth opportunities. The Mitel business continues to be a significant source of revenue and gross margin, representing 59% of total revenues in Q2 FY27 compared to 50% in Q2 FY26. Gross margin in the Mitel business segment remained strong and consistent at 97% in Q2 FY27 (compared to 96% in Q2 FY26).The MWO business segment, which includes Vantage DX and sunsetting legacy products, contributed 41% of revenues in Q2 FY27, compared to 50% in the same period last year. MWO revenue declined by $0.36 million (24%) compared to Q2 FY26, reflecting the continued sunsetting of legacy products and some Vantage DX customer churn.98% of total revenues were recurring in Q2 FY27, compared with 97% in the same period in the prior year.Monthly Recurring Revenue (MRR) totaled $0.92 million in Q2 FY27, a decrease of $0.06 million (6%) compared to $0.98 million in Q2 FY26. The decline was primarily driven by lower renewal rates on sunsetting legacy product offerings. This was partially offset by growth in the Mitel segment as described above.Gross margin as a percentage of revenue was 88.3% in Q2 FY27 compared to 84.5% in Q2 FY26. This improvement was driven by lower product delivery and support costs following the Company’s operational restructuring in Q3 FY26 as well as lower hosting costs, which collectively more than offset the impact of lower revenue.Operating expenses decreased to $1.80 million in Q2 FY27 from $9.61 million in Q2 FY26. The decrease primarily reflected a $5.91 million impairment of intangible assets related to the MWO segment recognized in the prior year. Excluding this impairment, operating expenses decreased by $1.90 million (51%), driven mainly by lower costs following the operational restructuring in Q3 FY26. Ongoing cost optimization initiatives also contributed to the year-over-year improvement in operating performance.Income from operations was $0.68 million in Q2 FY27 compared to a loss of $7.08 million in the same period of FY26. representing a year-over-year improvement of $7.76 million. The improvement primarily reflected the one-time impairment of intangible assets recognized in the same quarter of the prior year and lower operating expenses, partially offset by lower revenue, as discussed above.Other expense increased to $0.51 million in Q2 FY27 from $0.37 million in Q2 FY26, primarily due to a foreign exchange loss of $0.03 million compared to a gain of $0.10 million in the prior-year quarter. Interest expense on the Company’s loan, which was $0.42 million in both periods, remained the largest component of other expense.Net income for Q2 FY27 was $0.17 million, compared to a loss of $7.45 million in Q2 FY26, representing an increase of $7.62 million. Stronger profitability in Q2 FY27 reflects the changes discussed above partially offset by a foreign exchange loss of $0.03 million compared to a gain of $0.10 million in Q2 FY26.EBITDA (a non-IFRS measure) improved to $0.66 million in Q2 FY27 from a loss of $6.52 million in Q2 FY26, which included a $5.91 million impairment of intangible assets. Excluding the impairment, EBITDA improved by $1.27 million, driven by lower headcount and vendor costs following the operational restructuring.Adjusted EBITDA (a non-IFRS measure) reached positive $0.87 million in Q2 FY27, a meaningful turnaround from a loss of $0.76M in Q2 FY26, driven by the operational restructuring in Q3 FY26 and disciplined financial management.
The financial statements, notes and Management Discussion and Analysis (“MD&A”) are available under the Company’s profile on SEDAR+ at www.sedarplus.ca, and on Martello’s website at www.martellotech.com. The financial statements include the wholly-owned subsidiaries of Martello. All amounts are reported in Canadian dollars. MRR is a non-IFRS measure, representing average monthly recurring revenues earned in a fiscal quarter.
This press release does not constitute an offer of the securities of the Company for sale in the United States. The securities of the Company have not been registered under the United States Securities Act of 1933, (the “1933 Act”) as amended, and may not be offered or sold within the United States absent registration or an exemption from registration under the 1933 Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
About Martello Technologies Group
Martello (TSXV: MTLO) is a technology company that provides proactive service assurance solutions for unified communications and collaboration (UCC) platforms including Mitel and Microsoft Teams. Martello is a public company headquartered in Ottawa, Canada. Learn more at http://www.martellotech.com
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods and ” includes, but is not limited to, statements with respect to activities, events or developments that the Company expects or anticipates will or may occur in the future including expectations regarding disciplined financial management resulting in investment in growth initiatives, the expectation that artificial intelligence (AI)-augmented development will accelerate rapid prototyping and software delivery at lower cost, the aim to build long-term shareholder value through disciplined execution, targeted growth investments and continued operational efficiency, the expectation that a new contract will be negotiated between Martello and Mitel, and that new go-to-market models will represent potential mutual growth opportunities.
Forward-looking information is neither a statement of historical fact nor assurance of future performance. Instead, forward-looking information is based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking information relates to the future, such statements are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking information. Therefore, you should not rely on any of the forward-looking information. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking information include, among others, the following:
Continued volatility in the capital or credit markets and the uncertainty of additional financing.Our ability to obtain financing on acceptable terms and the impact of increased funding costs on our financial position.Changes in customer demand.Disruptions to our technology network including computer systems and software, as well as natural events such as severe weather, fires, floods and earthquakes or man-made or other disruptions of our operating systems, structures or equipment.Delayed purchase timelines and disruptions to customer budgets, as well as Martello’s ability to maintain business continuity.and other risks disclosed in the Company’s filings with Canadian Securities Regulators, which are available on the Company’s profile on SEDAR+ at www.sedarplus.ca.
Any forward-looking information provided by the Company in this news release is based only on information currently available and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking information, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
SOURCE Martello Technologies Group Inc.