- Revenue of $14.6M in Q1 2026 compared to $15.1M in Q1 2025.
- Gross margin of 40.2% in Q1 2026 compared to 41.3% in Q1 2025.
- Generated positive operating cash flow of $0.55M in Q1 2026.
- Completed acquisition of Greyne Custom Wood, expanding the Company's online marketplace distribution capabilities in the U.S. flooring market.
- Subsequent to quarter-end, BuildDirect completed acquisition of Tile Outlets of America ("TOA"), expanding the company's Florida footprint with three retail showroom locations.
- Company to host First Quarter 2026 financial results conference call on Thursday, May 28, 2026 at 1:30 PM (PDT) / 4:30 PM (EDT).
BuildDirect reports in U.S. dollars and in accordance with IFRS Accounting Standards.
Vancouver, British Columbia--(Newsfile Corp. - May 28, 2026) - BuildDirect.com Technologies Inc. (TSXV: BILD) (OTCQB: BDCTF) ("BuildDirect" or the "Company"), a leading omnichannel flooring material retailer, today announced its financial results for the First Quarter ended March 31, 2026 ("Q1 2026").
"BuildDirect delivered first quarter 2026 revenue of $14.6 million, maintained gross margins above 40%, and continued generating positive operating cash flow despite ongoing macroeconomic pressure across the home improvement sector," said Shawn Wilson, CEO of BuildDirect. "The continued expansion of our Pro Center platform, which represented 73% of total revenue during the quarter, alongside contributions from recent acquisitions, helped offset softer market conditions driven by elevated interest rates and lower existing-home turnover."
Shawn added, "During and subsequent to the quarter, we continued advancing our long-term growth strategy through the acquisitions of Greyne Custom Wood and Tile Outlets of America, which further expand our digital marketplace capabilities and strengthen our Pro Center footprint in key U.S. markets. We remain focused on disciplined execution, operational integration, and positioning the business for long-term growth and market share gains."
BuildDirect First Quarter 2026 Financial Results Conference Call
Date: Thursday, May 28, 2026
Time: 1:30 PM (PDT) / 4:30 PM (EDT)
Live Webinar: https://us02web.zoom.us/webinar/register/WN_rlYrt9NiSYObAaD58P_F-w
The replay will be available approximately 24 hours after the completion of the conference call. In addition, an archived replay will be available on the Investor Relations section of the Company's website at https://ir.builddirect.com/financials/quarterly-results/.
Among other things, the Company will discuss the long-term financial outlook on the conference call and related materials will be available on the Company's website at https://ir.builddirect.com/financials/quarterly-results/. Investors should carefully review the factors, assumptions, risks, and uncertainties included in such related materials concerning the long-term financial outlook.
First Quarter 2026 Financial Highlights
A. Financial Position
The following table summarizes the Company's financial position at March 31, 2026 and December 31, 2025.
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(1) A non-IFRS measure. See "Non-IFRS measures" for definitions and reconciliation of non-IFRS measures to the relevant IFRS Accounting Standards.
B. Financial Results
The following table summarizes the Company's selected financial results for the three months ended March 31, 2026 and 2025.
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C. Revenue and Gross Profit per Segment
The Company reports results in two segments: (1) E-Commerce and (2) Pro Centers. We measure each reportable operating segment's performance based on revenue. The E-Commerce segment relates to our online platform while the Pro Center segment includes sales and installation revenue from brick-and-mortar locations.
C. Revenue and Gross Profit per Segment (continued)
The E-Commerce and Pro Center segments contributed 27% and 73% of sales respectively in Q1 2026 compared to 28% and 72% of sales respectively in Q1 2025.
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D. Working Capital
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E. Quarterly Financial Information
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(1) A non-IFRS measure. See "Non-IFRS measures" for definitions and reconciliation of non-IFRS measures to the relevant IFRS Accounting Standards.
2026 Outlook
BuildDirect plans to continue strengthening revenue, margins, and cash flow as it scales its Pro Center network, grows its profitable E-Commerce segment, and enhances operational efficiency. The Company is focused on expanding its footprint through acquisitions and new locations, advancing its digital capabilities, and fully integrating recent acquisitions to capture synergies and reinforce its position as a leading omnichannel flooring provider in North America.
- Pro Center Expansion: The Company plans to grow its Pro Center network through targeted acquisitions and new builds, supported by standardized operating procedures and upgraded infrastructure.
- Profitable E-Commerce Growth: BuildDirect plans to enhance its website, improve in-stock levels, strengthen digital marketing, and continue routing fulfillment through Pro Centers to improve margins.
- Operational Efficiency: The Company plans to drive further efficiency through shared services, disciplined procurement, and unified inventory systems.
- Integration Synergies: The Company plans to realize additional revenue and margin benefits from integrating Greyne Custom Wood, Tile Outlets of America, and other operational improvements.
About BuildDirect
BuildDirect (TSXV: BILD) (OTCQB: BDCTF) is an expanding omnichannel flooring materials retailer, specializing in Pro Centers-strategic distribution hubs designed to serve professional contractors and trades. The Company is actively scaling its footprint through a combination of organic growth and strategic acquisitions, driving efficiency and market expansion. For more information, visit www.BuildDirect.com.
Forward-Looking Information:
This press release contains statements which constitute "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"), including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. These statements reflect management's current beliefs and expectations and are based on information currently available to management as at the date hereof.
Forward-looking statements in this press release may include, without limitation, statements relating to BuildDirect being in a strong position to keep building; BuildDirect's ongoing pursuit of a model focused on growing the Pro Center network, creating operating leverage and staying disciplined on returns; the Company building or acquiring strong locations, expanding its commercial reach, and growing EBITDA through better execution; the Company's acceleration of growth through the exploration of a combination of new location builds and targeted strategic acquisitions; the Company's expansion of its geographic footprint, deepening supplier relationships, and enhancing its service capabilities for professional customers; the Company's delivery of strong returns and capturing market share in both core and emerging regions; the Company's focus on driving EBITDA growth through improved operational efficiency and the continued development of its commercial sales channel; the Company being well-positioned to scale profitably while maintaining a high standard of customer service; and BuildDirect's unwavering commitment to pursue sustainable growth, operational excellence, and long-term value creation for its stakeholders.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. Among those factors are changes in consumer spending, inflation, availability of mortgage financing and consumer credit, changes in the housing market, changes in trade policies, tariffs or other applicable laws and regulations both locally and in foreign jurisdictions, availability and cost of goods from suppliers, fuel prices and other energy costs, interest rate and currency fluctuations, retention of key personnel and changes in general economic, business and political conditions and other factors referenced under the "Risks and Uncertainties" section of our MD&A. These forward-looking statements may be affected by risks and uncertainties in the business of the Company and general market conditions.
These factors should be considered carefully, and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release reflect the Company's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and BuildDirect assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
NON-IFRS MEASURES
This announcement refers to certain non-IFRS measures. These measures are not recognized measures under IFRS, and do not have a standardized meaning prescribed by IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS Accounting Standards measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS Accounting Standards. We use non-IFRS measures including "EBITDA" and "Adjusted EBITDA". Management uses these non-IFRS measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and to determine components of management compensation. As required by Canadian securities laws, we reconcile these non-IFRS measures to the most comparable IFRS Accounting Standards measures in this announcement. See below regarding definitions and reconciliation of these non-IFRS measures to the relevant reported measures.
We define EBITDA as net income or loss before interest, income taxes and amortization. Adjusted EBITDA removes fair value adjustments to warrants or inventory and share-based compensation determined by option pricing models. Non-recurring items, such as restructuring costs, bad debt expense, finance fees or government grants are removed. Similarly, foreign exchange gains/losses and gains/losses on disposal of assets are excluded. We are presenting these measures because we believe that our current and potential investors, and many analysts, use them to assess our current and future operating results and to make investment decisions. Management uses these measures in managing the business and making decisions. EBITDA and adjusted EBITDA are not intended as substitutes for IFRS measures.
EBITDA and Adjusted EBITDA for the three months ended March 31, 2026, and 2025
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(1) EBITDA % is a ratio of EBITDA divided by Total Revenue
(2) Adjusted EBITDA % is a ratio of Adjusted EBITDA divided by Total Revenue
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information:
Shawn Wilson, CEO
shawnwilson@builddirect.com
BuildDirect Investor Relations
ir@builddirect.com
Condensed Consolidated Interim Statements of Financial Position
(Unaudited)
(Expressed in United States dollars)
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Condensed Consolidated Interim Statements of Operations and Comprehensive Loss
(Unaudited)
(Expressed in United States dollars)
| For the three months ended | |||||||||
| March 31 | |||||||||
| 2026 | 2025 | ||||||||
| Revenue (note 17) | $ | 14,593,236 | $ | 15,088,846 | |||||
| Cost of goods sold (note 5) | 8,727,901 | 8,864,174 | |||||||
| Gross Profit | 5,865,335 | 6,224,672 | |||||||
| Operating expenses: | |||||||||
| Fulfillment costs | 880,896 | 895,598 | |||||||
| Selling and marketing | 1,383,481 | 1,415,059 | |||||||
| Administration | 4,195,239 | 3,298,776 | |||||||
| Depreciation and amortization | 604,493 | 763,042 | |||||||
| 7,064,109 | 6,372,475 | ||||||||
| Loss from operations | (1,198,774 | ) | (147,803 | ) | |||||
| Other income (expense): | |||||||||
| Interest income | 2,358 | 6,440 | |||||||
| Interest expense | (447,969 | ) | (356,106 | ) | |||||
| Fair value adjustment of warrants (note 14) | (156,077 | ) | (130,569 | ) | |||||
| Restructuring costs (note 22) | - | (120,014 | ) | ||||||
| Foreign exchange gain (loss) | 27,354 | (18,853 | ) | ||||||
| (574,334 | ) | (619,102 | ) | ||||||
| Loss before income taxes | (1,773,108 | ) | (766,905 | ) | |||||
| Income tax expense | 74,851 | 119,000 | |||||||
| Total loss and comprehensive loss for the period | $ | (1,847,959 | ) | $ | (885,905 | ) | |||
| Deficit, beginning of period | (133,831,873 | ) | (131,497,177 | ) | |||||
| Deficit, end of period | $ | (135,679,832 | ) | $ | (132,383,082 | ) | |||
| Loss per share: | |||||||||
| Basic and diluted loss per share (note 23) | $ | (0.04 | ) | $ | (0.02 | ) | |||
Condensed Consolidated Interim Statement of Changes in Equity (Deficiency)
(Unaudited)
(Expressed in United States dollars)
| Common Shares | Share based payment reserve | Deficit | Total | ||||||||||||
| Number | Amount | ||||||||||||||
| Balance - December 31, 2024 | 42,032,706 | $ | 123,136,971 | $ | 11,515,195 | $ | (131,497,177 | ) | $ | 3,154,989 | |||||
| Exercise of stock options (note 16) | 7,417 | 6,666 | (2,253 | ) | - | 4,413 | |||||||||
| Loss and comprehensive loss for the period | - | - | - | (885,905 | ) | (885,905 | ) | ||||||||
| Share-based payment expense (note 16) | - | - | 34,865 | - | 34,865 | ||||||||||
| Balance - March 31, 2025 | 42,040,123 | $ | 123,143,637 | $ | 11,547,807 | $ | (132,383,082 | ) | $ | 2,308,362 | |||||
| Balance - December 31, 2025 | 48,299,297 | $ | 128,360,133 | $ | 11,610,434 | $ | (133,831,873 | ) | $ | 6,138,694 | |||||
| Exercise of stock options (note 16) | 1,391 | 1,056 | (260 | ) | - | 796 | |||||||||
| Loss and comprehensive loss for the period | - | - | - | (1,847,959 | ) | (1,847,959 | ) | ||||||||
| Share-based payment expense (note 16) | - | - | 97,391 | - | 97,391 | ||||||||||
| Balance - March 31, 2026 | 48,300,688 | $ | 128,361,189 | $ | 11,707,566 | $ | (135,679,832 | ) | $ | 4,388,923 | |||||
Condensed Consolidated Interim Statement of Cash Flows
(Unaudited)
(Expressed in United States dollars
| For the three months ended | |||||||||
| March 31 | |||||||||
| 2026 | 2025 | ||||||||
| Cash provided by (used in): | |||||||||
| Operating activities: | |||||||||
| Loss for the period | $ | (1,847,959 | ) | $ | (885,905 | ) | |||
| Add (deduct) items not affecting cash: | |||||||||
| Depreciation | 604,493 | 763,042 | |||||||
| Income tax expense | 74,851 | 119,000 | |||||||
| Stock-based compensation expense (note 16) | 52,270 | 34,865 | |||||||
| Performance share unit compensation (note 16) | 45,122 | - | |||||||
| Deferred share unit compensation (note 15) | 127,802 | - | |||||||
| Interest on capital leases | 86,636 | 40,556 | |||||||
| Other interest and finance cost | 287,767 | 261,991 | |||||||
| Amortization of financing costs (note 12) | 12,375 | 7,496 | |||||||
| Change in fair value of warrants (note 14) | 156,077 | 130,569 | |||||||
| Unrealized foreign exchange | (58,075 | ) | (16 | ) | |||||
| Change in non-cash working capital (note 19) | 1,167,389 | 839,263 | |||||||
| Income taxes paid | (162,335 | ) | (16,611 | ) | |||||
| Total operating activities | 546,413 | 1,294,251 | |||||||
| Investing activities: | |||||||||
| Purchase of property and equipment (note 6) | (3,847 | ) | (34,165 | ) | |||||
| Acquisition of assets (note 3) | (405,000 | ) | (593,396 | ) | |||||
| Total investing activities | (408,847 | ) | (627,561 | ) | |||||
| Financing activities: | |||||||||
| Proceeds from exercise of options (note 16) | 796 | 4,413 | |||||||
| Deferred financing costs (note 12) | - | (72,939 | ) | ||||||
| Interest paid | (62,150 | ) | (53,917 | ) | |||||
| Principal lease payments (note 13) | (535,065 | ) | (322,060 | ) | |||||
| Promissory note repayment (note 12) | (311,250 | ) | (311,250 | ) | |||||
| Net (repayments) advances on credit facility (note 12) | (234,937 | ) | 1,233,123 | ||||||
| Loans payable - repayment (note 12) | (1,519 | ) | (1,293 | ) | |||||
| Total financing activities | (1,144,125 | ) | 476,077 | ||||||
| Increase (decrease) in cash and cash equivalents | (1,006,559 | ) | 1,142,767 | ||||||
| Cash and cash equivalents, beginning | 8,195,460 | 2,347,491 | |||||||
| Cash and cash equivalents, end | $ | 7,188,901 | $ | 3,490,258 | |||||
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