SSC Security Services Corp. Announces Record Q1 FY2026 Revenues, Up 14.7%
MWN-AI** Summary
SSC Security Services Corp. recently announced impressive financial results for the first quarter of FY2026, with revenues hitting a record $33.5 million, reflecting a robust 14.7% increase from the previous year’s $29.2 million. This achievement marks the highest quarterly revenue in the company’s history, attributed to solid organic growth and high renewal rates for existing contracts, underscoring the effectiveness of SSC’s management and services.
Chairman and CEO Doug Emsley expressed confidence in the company’s performance, highlighting the importance of maintaining strong cash reserves while pursuing growth opportunities. The company's adjusted EBITDA for the quarter was reported at $1.1 million, consistent with the prior year's figure, while gross profits grew to $5.1 million, although the gross margin slightly declined from 16.5% to 15.2%. Despite these fluctuations, SSC managed to maintain its commitment to paying dividends, completing its 37th consecutive quarterly distribution at $0.03 per share.
The balance sheet remains strong, showcasing $8.6 million in cash and cash equivalents and total shareholders' equity of $60.8 million, all without incurring any debt. Looking forward, SSC anticipates continued growth driven by the increasing demand for comprehensive security solutions, with plans to cautiously pursue acquisitions that align with their strategic goals.
In summary, SSC Security Services Corp. is well-positioned for future growth, fueled by a strong operational framework and a favorable market environment, while remaining committed to shareholder returns and financial prudence.
MWN-AI** Analysis
SSC Security Services Corp. (TSXV: SECU) has reported impressive results for Q1 FY2026, with revenues soaring by 14.7% to a record $33.5 million. This growth is promising, particularly as it stems from organic sources, showing strong demand across the company's integrated security services. The Company's gross profit also increased to $5.1 million, affirming the effectiveness of its operational strategies despite experiencing a slight decline in gross margin percentage.
For investors, SSC's performance can be viewed as a positive sign. The company's commitment to maintaining a debt-free status and high liquidity positions it favorably for potential acquisitions, which could further enhance revenue streams. The continuity of its dividend payments, despite fluctuating profit margins, indicates robust cash management and shareholder commitment.
However, challenges remain. The company reported a slight decline in adjusted net income. Investors should monitor this closely, as sustained decreases could impact long-term shareholder value. Additionally, while the absence of debt provides flexibility in operations, it also necessitates strategic financial prudence in pursuing potential acquisitions or expansions.
Going forward, SSC appears well-positioned to capitalize on the increasing demand for innovative security solutions, particularly in combining physical and electronic services. The management's cautious yet opportunistic growth strategy aligns well with the need for stability in uncertain economic conditions.
In conclusion, SSC Security Services Corp. may represent a worthwhile consideration for investors seeking exposure to the growing security sector. However, potential shareholders should conduct thorough due diligence, especially concerning profitability metrics and acquisition strategies, to confirm that SSC can maintain its growth trajectory while delivering value to its shareholders.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Canada NewsWire
REGINA, SK, Feb. 10, 2026 /CNW/ - SSC Security Services Corp. ("SSC" or the "Company) (TSXV: SECU) (OTCQX: SECUF), a national provider of cyber, physical and electronic security services to commercial, industrial and public sector clients across Canada, is pleased to release its results for the first quarter ended December 31, 2025. All figures are presented in Canadian dollars.
"Our first quarter results were strong, delivering the highest quarterly revenues in the Company's history. Organic growth, combined with excellent renewal rates as existing contracts came due, demonstrates the strength of our management team and the top-tier level of service we provide to our customers. We receive this type of feedback regularly, and our first quarter results confirm it. As always, our objective is to protect our cash while remaining opportunistic in our efforts to grow the Company. We continue to be well capitalized and debt-free," said Chairman and CEO Doug Emsley.
Key Highlights for Q1 2026:
- Record Revenue Growth – The Company generated $33.5 million in revenue in Q1 2026, an increase of 14.7% from $29.2 million in the prior-year first quarter. This represents the highest quarterly revenue in the Company's history.
- Consistent Adjusted EBITDA - Adjusted EBITDA for the quarter ended December 31, 2025 was $1.1 million ($0.06 per share), consistent with the prior-year first quarter adjusted EBITDA of $1.2 million ($0.06 per share).
- Gross Profit Growth – Gross profit increased to $5.1 million (15.2% margin) for the three months ended December 31, 2025, compared to $4.8 million (16.5%) in the same three-month period last year.
- 37th Consecutive Quarterly Dividend Paid - During the quarter we paid $0.03 per share in dividends to shareholders.
- We finished the quarter ended December 31, 2025 with:
- Cash and cash equivalents of $8.6 million equal to $0.47 per share;
- Working capital of $25.1 million;
- Total shareholders' equity of $60.8 million; and
- No debt.
Key Performance Indicators for the comparable periods are summarized below:
Key Performance Indicators | Quarter ended Dec 31 | |
(All amounts are in thousands of Canadian dollars unless otherwise indicated) | 2025 | 2024 |
Revenue | 33,536 | 29,195 |
Cost of sales | 28,429 | 24,387 |
Gross profit | 5,107 | 4,808 |
Gross margin (%) | 15.2 % | 16.5 % |
Comprehensive net loss | (8) | (125) |
Comprehensive net loss per share (basic) | $(0.00) | $(0.01) |
Adjusted net income | 358 | 606 |
Adjusted net income per share (basic) | $0.02 | $0.03 |
Adjusted EBITDA | 1,063 | 1,171 |
Adjusted EBITDA per share (basic) | $0.06 | $0.06 |
REVENUE, GROSS PROFIT & NET INCOME
Revenues for the quarter ended December 31, 2025 were $33.5 million compared with $29.2 million during the quarter ended December 31, 2024, an increase of $4.3 million (revenue increase of 14.7%). The Company's revenue increase was fully driven by organic growth from internal operations. The company's long-term recurring monthly revenues remain strong.
Gross profit for the quarter ended December 31, 2025 increased to $5.1 million (15.2%) from $4.8 million (16.5%) during the same quarter last year. We remain focused on expanding gross profit while maintaining gross margins.
Comprehensive net loss for the quarter ended December 31, 2025 was $0.0 million (loss of $0.00 per share), compared to comprehensive net loss during the same quarter last year of $0.1 million (loss of $0.01 per share).
ADJUSTED NET INCOME & ADJUSTED EBITDA
Adjusted EBITDA is the primary KPI used by the Company to measure the financial performance of the Company. Adjusted EBITDA for the quarter ended December 31, 2025, was $1.1 million ($0.06 per share), as compared to $1.2 million ($0.06 per share) during the same quarter last year.
Adjusted net income for the quarter ended December 31, 2025 was $0.4 million (profit of $0.02 per share), compared to an adjusted net income in Q1 2025 of $0.6 million (profit of $0.03 per share).
A reconciliation of earnings to adjusted net income and adjusted EBITDA is provided in the Non-IFRS section of the MD&A published concurrently with this press release.*
BALANCE SHEET
Key balance sheet items are summarized below:
Statements of Financial Position | As at | As at |
31-Dec-25 | 31-Dec-24 | |
Cash | 8,568 | 11,422 |
Accounts receivable | 26,723 | 22,578 |
Legacy business assets | 6,011 | 6,203 |
Working capital | 25,092 | 26,255 |
Long-term debt | 0 | 0 |
Total assets | 82,497 | 80,800 |
Total liabilities | 21,677 | 17,367 |
Total shareholders' equity | 60,819 | 63,433 |
Common shares outstanding | 18,264 | 18,546 |
OUTLOOK
We are seeing continued growth in demand for the kind of innovative and cost-effective security services and solutions that we offer at SSC. Our ability to combine physical and electronic security services in a fully integrated way is the future of our industry. Additional growth may also come via acquisition, as we look to acquire other profitable companies in the Canadian security industry. While acquisitions will help us reach our growth targets, we will be careful and conservative in our approach as we assess new opportunities.
The remaining legacy assets are expected to convert to cash, and our objective is to make these resources available for the expansion of our security business.
We also plan to continue to distribute capital to shareholders via our dividend, operate with minimal to no debt while maintaining solid liquidity, focusing on maintaining strong margins, and maximizing our adjusted EBITDA per share.
ABOUT SSC
SSC Security Services Corp. is a national provider of cyber, physical and electronic security services to corporate and public sector clients across Canada. For more information, please visit www.securityservicescorp.ca
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.
Forward Looking Statements
This release includes forward-looking statements regarding SSC and its business. Such statements are based on the current expectations and views of future events of SSC's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting SSC, including risks regarding the security industry, the agricultural industry, economic factors and the equity markets generally and many other factors beyond the control of SSC. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and SSC undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
*Non-IFRS Measures
SSC measures key performance metrics established by management as being key indicators of the Company's strength, using certain non-IFRS performance measures, including:
- EBITDA, EBITDA per share, Adjusted EBITDA, Adjusted EBITDA per share, Adjusted Net Income, Adjusted Net Income per share.
The Company uses these non-IFRS measures for its own internal purposes. These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and these measures may be calculated differently by other companies. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The Company provides these non-IFRS measures to enable investors and analysts to understand the underlying operating and financial performance of the Company in the same way as it is frequently evaluated by Management. Management will periodically assess these non-IFRS measures and the components thereof to ensure their continued use is beneficial to the evaluation of the underlying operating and financial performance of the Company. For more detailed information, please refer to the Company's Management Discussion and Analysis dated February 10, 2026 available on the Company's website at www.securityservicescorp.ca and on SEDAR+ at www.sedarplus.ca.
SOURCE SSC Security Services Corp.
View original content: http://www.newswire.ca/en/releases/archive/February2026/10/c1077.html
FAQ**
How does SSC Security Services Corp. (SECUF) plan to sustain its 14.7% revenue growth in an increasingly competitive market for cyber and physical security services in Canada?
With the adjusted EBITDA remaining consistent despite revenue growth, what strategies is SSC Security Services Corp. (SECUF) implementing to improve profitability margins?
Can SSC Security Services Corp. (SECUF) elaborate on its plans for potential acquisitions within the Canadian security industry and how these might contribute to future growth?
What measures is SSC Security Services Corp. (SECUF) taking to manage its cash reserves while ensuring shareholder returns through dividends, despite fluctuating operational expenses?
**MWN-AI FAQ is based on asking OpenAI questions about Ssc Security Services Corp. (TSXVC: SECU:CC).
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