Nerds On Site posts record revenue and sharp turnaround in fiscal 2026

Nerds On Site reported fiscal 2026 revenue of $13.44 million, up 11% from a year earlier, as operating loss, cash burn and net loss all improved sharply. The Canadian managed IT company also said it ended the year with two straight profitable quarters and expects growth from recurring services, AI and U.S. technical staffing.

Why it matters: - Nerds On Site's fiscal 2026 results show a turnaround that could give the managed IT and cybersecurity provider a stronger base for fiscal 2027. - The company cut operating loss, reduced cash used in operations and added recurring revenue, all while growing sales. - Two consecutive profitable quarters at the end of the year suggest the improvement was not limited to a single period.

What happened: - Nerds On Site reported fiscal 2026 revenue of $13.44 million for the year ended May 31, 2026. - Revenue rose 11% from $12.09 million in fiscal 2025. - Gross profit increased to $3.42 million from $3.24 million. - Operating loss narrowed to $21,908 from $403,930 a year earlier. - Net loss attributable to common shareholders improved 52% to $221,387 from $463,472. - Net cash used in operating activities fell to $22,482 from $674,983. - Cash and cash equivalents rose to $220,927 from $160,879 at the prior year-end.

The details: - SG&A expenses fell 10% to $3.32 million from $3.67 million. - SG&A dropped to about 25% of revenue from about 30% a year earlier. - The company said lower payroll and related costs, office and administrative expenses, business development costs and management remuneration drove the decline. - Audited results showed revenue of $13,438,707, gross profit of $3,421,042 and net loss attributable to common shareholders of $221,387. - Operating cash usage improved by about $652,500 year over year. - In the second half of fiscal 2026, the company generated about $6.65 million of revenue across Q3 and Q4. - Those two quarters produced about $111,000 in combined profit attributable to common shareholders. - Q3 revenue was about $3.28 million, with profit attributable to common shareholders of about $52,000. - Q4 revenue was about $3.36 million, with profit attributable to common shareholders of about $59,000. - Canadian recurring revenue increased to about $10.28 million from about $9.18 million. - Canadian residential recurring revenue rose to about $1.00 million from about $858,000. - Revenue increased about 23% from fiscal 2024 to fiscal 2026, while gross profit rose about 22% over the same period. - The company listed fiscal 2024 revenue at $10.95 million and gross profit at $2.80 million. - The company listed fiscal 2025 revenue at $12.09 million and gross profit at $3.24 million.

Between the lines: - The results point to improving operating leverage: revenue rose while overhead fell as a share of sales. - The late-year profit streak matters because it suggests the business is moving closer to consistent profitability, not just smaller losses. - Management's growth plans also show the company is trying to diversify beyond its core managed IT business. - That diversification carries execution risk, especially in newer initiatives that have not yet scaled.

What's next: - Nerds On Site plans to focus in fiscal 2027 on operating performance, expense discipline, working-capital management and growth in recurring managed IT, cybersecurity and technical services revenue. - The company expects renewed opportunities in NOS Technical Services as U.S. government technology staffing demand normalizes. - Management also plans to expand AI-enabled internal tools and client-facing offerings. - The company is combining ClientCare and Nerds On Line into a service model that offers remote support when possible and on-site help when needed. - CEO Charlie Regan said the goal is to convert fiscal 2026 progress into sustained profitability, stronger cash generation and long-term shareholder value.

The bottom line: - Nerds On Site ended fiscal 2026 with record revenue, sharply better cash flow and a near-breakeven operating result, setting up fiscal 2027 as a test of whether the turnaround can stick.