Nerds On Site posts back-to-back profitable quarters in fiscal 2026

Nerds On Site said its second half of fiscal 2026 produced two consecutive profitable quarters, with Q3 and Q4 combined profit of about $111,000 versus a combined loss of about $102,000 a year earlier. The preliminary unaudited results point to tighter costs and improving operating leverage even as Q4 revenue dipped from the prior year.

Why it matters: - Nerds On Site showed it can turn revenue into profit more consistently in the back half of fiscal 2026. - The second-half turnaround suggests lower operating costs are starting to translate into bottom-line gains. - The company is trying to scale recurring managed IT and cybersecurity revenue across Canada and the U.S.

What happened: - Nerds On Site reported preliminary unaudited results for the third and fourth quarters of fiscal 2026, ended May 31, 2026. - The company posted profit attributable to common shareholders in both Q3 and Q4. - Combined Q3 and Q4 fiscal 2026 profit attributable to common shareholders came to about $111,000. - The same two quarters in fiscal 2025 produced a combined loss of about $102,000. - Management said the second half of fiscal 2026 delivered two consecutive profitable quarters.

The details: - Q4 fiscal 2026 revenue was $3.36 million, down from $3.57 million a year earlier. - Q4 gross profit was about $895,000, compared with about $1.08 million in the prior-year quarter. - Q4 selling, general and administrative expenses were about $790,000, down about 17% from about $951,000. - Q4 remained profitable even with revenue about 6% below the prior-year quarter. - Q3 fiscal 2026 revenue was $3.28 million, up about 9% from $3.00 million a year earlier. - Q3 gross profit rose to about $861,000 from about $695,000, an increase of about 24%. - Q3 gross margin improved to about 26% from about 23%. - Q3 SG&A fell to about $758,000 from about $905,000, a drop of about 16%. - Q3 operating profit was about $96,000, versus an operating loss of about $221,000 a year earlier. - Q3 net profit attributable to common shareholders was about $52,000, compared with a loss of about $198,000. - Across both quarters, revenue totaled about $6.65 million, up slightly from about $6.57 million in the comparable period of fiscal 2025. - Combined SG&A for Q3 and Q4 was about $1.55 million, down about $307,000, or 17%, from about $1.86 million a year earlier. - The company said its consolidated fiscal 2026 financial statements are still being audited and the figures remain subject to adjustment.

Between the lines: - The results show operating leverage becoming more visible: revenue was roughly flat, but costs fell enough to lift earnings. - Q3 appears to have been the cleaner proof point, with both revenue growth and margin expansion. - Q4 was the tougher comparison, since revenue declined, but expense control still kept the quarter in the black. - Charlie Regan, CEO of Nerds On Site, said the company’s most important message was the two consecutive profitable quarters. - Regan said the company is seeing progress in revenue growth, gross profit expansion and expense discipline.

What's next: - Nerds On Site said it remains focused on expanding recurring managed IT and cybersecurity revenue. - The company also plans to increase operating efficiency, grow its U.S. presence and expand its NOS Technical Services business. - Investors will likely look for the audited fiscal 2026 statements to confirm the preliminary results. - The company is also expected to keep emphasizing technology infrastructure as a growth lever.

The bottom line: - Nerds On Site ended fiscal 2026 with two straight profitable quarters, a sharp improvement from the prior year and a sign that tighter cost control is helping earnings catch up to revenue.