Nerds On Site Inc. Reports Strong First-Quarter Results with 19.9% Revenue Growth
TORONTO, ONTARIO, CANADA, October 30, 2025 – Nerds On Site Inc. (CSE: NERD, OTCQB: NOSUF) ("Nerds" or the "Company"), a leading provider of Cybersecurity, Managed IT, as well as on-site and remote support services for small and medium-sized enterprises (SMEs), today announced its unaudited financial results for the three-month period ended August 31, 2025 ("Q1 2026").
The Company delivered solid top-line growth, improved operating performance, and a continued reduction in net loss compared with the prior year. Momentum across Nerds On Site's recurring services—including SME EDGE cybersecurity, NOS Technical Services placement operations, and Nerds On Line home-support plans—helped drive another quarter of consistent improvement.
First-Quarter 2026 Highlights
• Revenue: $3,197,828, an increase of 19.9% from $2,666,279 in Q1 2025.
• Gross Profit: $761,316, up $92,011 from $669,305 a year earlier.
• Gross Margin: 24%, compared with 25% in Q1 2025, reflecting modest investment in new service launches.
• SG&A Expenses: $907,753, consistent with $907,856 in Q1 2025 but reduced to 28% of revenue (from 34%), demonstrating improved efficiency.
• Operating Loss: $(152,351), an improvement from $(245,871).
• Net Loss Attributable to Shareholders: $(191,738), a 27% reduction from $(263,542).
• Cash Used in Operating Activities: $(131,559), a 44% reduction from $(297,587) in Q1 2025.
Management Commentary
"Our strategy is proving effective - to build recurring-revenue streams while maintaining cost discipline," said Charles Regan, CEO of Nerds On Site Inc. "We achieved nearly 20% revenue growth without increasing expenses, which demonstrates the scalability of our model. By combining operational excellence with recurring service expansion, we continue to move closer to sustained profitability."
He continued:
"Looking ahead, our U.S. subsidiary — NOS Technical Services Inc. — is progressing well in specialized AI-driven recruitment for government, pharmaceutical and commercial contracts. We're also advancing Private LLM AI development for SMEs to secure & protect their intellectual property from Public LLMs (like ChatGPT and GROK) yet enable the AI tools they need to put to profitable use safely. These initiatives represent important growth engines that will define the next evolution of Nerds On Site."
Operational Review
Nerds On Site's Q1 results highlight steady progress across all business lines:
• SOHO/Home & SME Support: The Nerds On Line plan, offering 24/7 remote support for two devices at $39 per month, continues to gain momentum in Canada and the U.S. Expanded marketing and partner referral programs are expected to accelerate subscriber growth through FY2026.
• Cybersecurity Services: SME EDGE solutions, powered by our related party company ADAM Networks' patented "Don't Talk To Strangers" technology, saw increasing Client adoption. Demand remains strong amid rising compliance requirements and cyber-risk awareness in both SME and professional-services sectors.
• Enterprise & Government Projects: NOS Technical Services is servicing contracts in the U.S. government and pharmaceutical sectors. Its AI-enhanced recruitment capabilities and North-American Client relationships continue to build a foundation for sustained U.S. revenue growth.
• Operational Efficiency: By holding SG&A flat and improving cash use by 44%, the Company demonstrated operating leverage and margin resilience despite ongoing investment in new service lines.
Financial Performance Summary
Three Months Ended August 31, 2025 vs. August 31, 2024:
• Total Revenue: $3,197,828 vs. $2,666,279 — up 19.9%
• Gross Profit: $761,316 vs. $669,305 — up 13.7%
• Gross Margin: 24% vs. 25% — down 1 percentage point
• Operating Expenses: $913,667 vs. $915,176 — down 0.2%
• Operating Loss: $(152,351) vs. $(245,871) — improved 38%
• Net Loss: $(191,738) vs. $(263,542) — improved 27%
• Cash Used in Operations: $(131,559) vs. $(297,587) — improved 44%
• EPS (Basic & Diluted): $(0.0021) vs. $(0.0029) — improved 28%
Strategic Outlook
For the remainder of Fiscal 2026, Nerds On Site will focus on:
-
Expanding Recurring Revenue: Accelerating growth in Nerds On Line and SME EDGE subscriptions through digital marketing, cross-selling, and bundled offers for SMEs and SOHO/home users.
-
Scaling NOS Technical Services: Leveraging AI-driven recruitment technology to secure new contracts in U.S. government, pharma, and commercial markets.
-
Developing Private LLM AI Solutions: Advancing customized AI models to empower SMEs with secure, private AI tools that enhance productivity and protection.
-
Maintaining Operational Discipline: Preserving SG&A efficiency while investing strategically in AI and automation to support margin growth.
"Our mission is simple," added Regan. "Provide Clients with one-stop shop, world-class technology solutions, delivered through a trusted local network. By layering AI innovation onto our service platform, Nerds On Site is positioned to lead in cybersecurity and IT services for the evolving business environment of today and tomorrow."
Cash Flow and Balance Sheet
Cash used in operating activities declined to $131,559 from $297,587 the year before—a 44% improvement—driven by higher revenue and disciplined expense management. The Company remains well-positioned to fund operations and strategic growth initiatives through cash flow and available credit facilities. Management continues to evaluate complementary acquisitions and partnerships to extend its service portfolio and North-American reach.
Financial Statements
The complete unaudited condensed interim consolidated financial statements and management's discussion and analysis for Q1 2026 are available for download:
• Q1 2026 Financial Statements (PDF)
• Q1 2026 Management's Discussion & Analysis (PDF)
About Nerds On Site Inc.
Nerds On Site Inc. (CSE: NERD) is a North-American technology services and cybersecurity company delivering 24/7 remote and onsite IT support to SME, Enterprise and SOHO/home Clients. Core offerings include the Nerds On Line home support plan, SME EDGE cybersecurity solutions, and national roll-out and AI-recruitment services through NOS Technical Services Inc. Headquartered in Toronto with operations across Canada and the U.S., Nerds On Site is focused on driving secure, efficient, and AI-enhanced technology experiences for its clients.
For more information, visit www.nerdsonsite.com, www.NOStechnicalServices.com, www.NerdsOnLine.com, www.reviews.nerdsonsite.com
Forward-Looking Information
This news release contains forward-looking statements within the meaning of applicable securities laws, including statements regarding expected financial performance, strategic initiatives, and market expansion. Such statements reflect current expectations and assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially. Readers are cautioned not to place undue reliance on these statements. Nerds On Site Inc. undertakes no obligation to update forward-looking information except as required by law.
For further information, please contact:
Investor Relations
Nerds On Site Inc.
Phone: +1 (866) 616-6373
Email: ir@nerdsonsite.com
Website: www.nerdsonsite.com