Company enters FY27 with improved profitability, positive operating cash flow and enhanced Mitel commercial terms, supporting continued investment in growth and innovation.
Generated positive operating cash flow in Q1 FY27, reflecting the Company’s leaner operating model and continued focus on strengthening its financial foundation.Successfully negotiated and implemented improved commercial terms for certain Mitel Performance Analytics (MPA) offerings, reflecting the value MPA delivers within the Mitel ecosystem. Collaboration with Mitel continued to advance on new go-to-market opportunities intended to expand MPA adoption among Mitel partners and customers.Strengthened engagement with Mitel partners, customers and leadership through participation in major Mitel events in North America and Europe.Continued to advance the Company’s innovation initiative within a targeted opportunity space informed by customer and partner engagement, to identify potential areas for future innovation and investment.Profitability continued to improve in Q1 FY27, with the EBITDA and adjusted EBITDA gain increasing sequentially from Q4 FY26 to Q1 FY27. Year over year, this profitability reflects a meaningful turnaround compared to a loss in the same quarter of the prior year.
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES./
OTTAWA, ON, Aug. 13, 2026 /CNW/ — Martello Technologies Group Inc., (“Martello” or the “Company”) (TSXV: MTLO), a provider of experience monitoring solutions for unified communications and collaboration (UCC) systems, today released financial results for the three months ended June 30, 2026.
“As we closed the first quarter of FY27, Martello continued to build on the progress achieved through our FY26 transformation”, said Jim Clark, Chief Executive Officer of Martello. “With improved profitability and positive operating cash flow providing a strengthened financial position and continued progress on our strategic priorities, we believe Martello is well positioned to invest in future growth opportunities. During the quarter, we successfully negotiated and implemented improved commercial terms for certain Mitel Performance Analytics offerings, reflecting the value MPA delivers within the Mitel ecosystem. We also advanced additional Mitel growth initiatives and refined our innovation strategy through extensive partner and industry engagement. We remain focused on building long-term shareholder value through disciplined execution, targeted growth investments and continued operational efficiency”.
“The first quarter of FY27 reflected continued momentum in Martello’s strategic relationship with Mitel,” said Terence Matthews, Chairman of Martello. “The implementation of improved commercial terms, ongoing product innovation and joint efforts to expand the market opportunity for Mitel Performance Analytics demonstrate the strength of the partnership. We are encouraged by the engagement we have seen from Mitel partners and customers and believe these initiatives create a foundation for future growth.”
Q1 FY27 Financial Highlights
Financial Highlights
June 30,
June 30,
(in 000’s)
2026
2025
(Three months ended)
Sales
$
2,870
3,088
Cost of Goods Sold
321
461
Gross Margin
2,549
2,627
Gross Margin
%
88.80 %
85.10 %
Operating Expenses
1,750
4,529
Income (Loss) from operations
799
(1,902)
Other expense
(407)
(230)
Income (Loss) before income tax
392
(2,132)
Income tax recovery
–
–
Net income (loss)
392
(2,132)
Total Comprehensive Income (Loss)
$
90
(1,932)
EBITDA (1)
$
874
(1,155)
Adjusted EBITDA (1)
$
882
(1,194)
(1) Non-IFRS measure. See “Non-IFRS Financial Measures”.
Revenue was $2.87M in Q1 FY27, representing a 7% decrease compared to $3.09M in the same period of the prior year. The decline was primarily due to lower renewal rates on sunsetting legacy product offerings which was partially offset by an increase in Mitel segment revenue. Sunsetting legacy product revenue declined by 30% or $0.31M in Q1 FY27 compared to Q1 FY26. The ongoing decline of legacy product revenue is proceeding as expected.Revenue from the Mitel business segment increased by 9% to $1.64M in Q1 FY27 compared to $1.50M in the same period of the prior year. This increase is primarily attributable to an expected shift in the revenue mix from various MPA offerings that is now stabilizing. 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 57% of total revenues in Q1 FY27 compared to 49% in Q1 FY26. Gross margin in the Mitel business segment remained strong and consistent at 97% in Q1 FY27 (compared to 96% in Q1 FY26).99% of total revenues were recurring in Q1 FY27, consistent with the same period in the prior year.Monthly Recurring Revenue (MRR) totaled $0.95M in Q1 FY27, representing a decrease of $0.07M (6.8%) compared to $1.02M in Q1 FY26. The decrease was primarily attributable to lower renewal activity across legacy sales contracts. This was offset by slight growth in the Mitel segment, driven by an increase in the fees paid by Mitel for certain Mitel Performance Analytics (MPA) offerings.Gross margin as a percentage of revenue was 88.8% in Q1 FY27 compared to 85.1% in Q1 FY26. This improvement is attributable to the decrease in cost of goods sold in the Modern Workplace Optimization (MWO) segment in connection with the operational restructuring in Q3 FY26.Operating expenses for Q1 FY27 decreased by 61% to $1.75M from $4.53M in Q1 FY26, primarily due to a decrease in headcount in connection with the operational restructuring in Q3 FY26, as well as the write-off of intangible assets in the MWO segment in Q2 FY26, which eliminated the amortization expense in Q1 FY27.Other expense increased to $0.41M in Q1 FY27 from $0.23M in Q1 FY26, primarily due to lower foreign exchange gains offsetting interest expense on the Company’s loan, which represented the largest component of other expense in both periods. Foreign exchange gains were $0.03M in Q1 FY27 compared to $0.20M in Q1 FY26.Income from operations was $0.80M in Q1 FY27 compared to a loss of $1.90M in the same period of FY26. This improvement is attributable to lower operating expenses partially offset by lower revenue as discussed above. Net income for Q1 FY27 was $0.39M, compared to a loss of $2.13M in Q1 FY26, representing an increase of $2.52M. Stronger profitability in Q1 FY27 reflects the changes discussed above, partially offset by lower foreign exchange gains.EBITDA in Q1 FY27 improved to positive $0.87M, compared to a loss of $1.16M in Q1 FY26, primarily driven by lower headcount and vendor costs following the operational restructuring.Adjusted EBITDA (a non-IFRS measure) reached positive $0.88M in Q1 FY27, a meaningful turnaround from a loss of $1.19M in Q1 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 experience monitoring 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 the negotiation of a new contract between Martello and Mitel, the exploration of new Go-to-Market models that represent a potential mutual growth opportunity, the intent to validate market needs and areas for future innovation and the intent to invest in future growth opportunities building long-term shareholder value through disciplined execution, targeted growth investments and continued operational efficiency.
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 maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so.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.
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