Nerds On Site Reports Record $13.44 Million Revenue and 95% Improvement in Operating Loss for Fiscal 2026
11% Revenue Growth, Two Consecutive Profitable Quarters and a $652,500 Improvement in Operating Cash Flow in Fiscal 2026
LONDON, ONTARIO, CANADA, September 28, 2026 - Nerds On Site Inc. (CSE: NERD) (OTCQB: NOSUF) ("Nerds On Site," "NOS" or the "Company"), a provider of managed IT, cybersecurity and technology solutions for small and medium-sized businesses, today announced its financial results for the fiscal year ended May 31, 2026.
In fiscal 2026, revenue increased, selling, general and administrative expenses decreased, the operating loss was substantially reduced, operating cash flow improved and the net loss attributable to common shareholders was reduced by 52%.
Fiscal 2026 Financial Highlights
For the year ended May 31, 2026:
- Revenue increased 11% to $13.44 million, compared with $12.09 million in fiscal 2025.
- Gross profit increased to $3.42 million, compared with $3.24 million in fiscal 2025.
- Operating loss was $21,908, compared with $403,930 in fiscal 2025.
- SG&A expenses decreased 10% to $3.32 million, compared with $3.67 million in fiscal 2025.
- SG&A was approximately 25% of revenue, compared with 30% in fiscal 2025.
- Net loss attributable to common shareholders improved 52% to $221,387, compared with $463,472 in fiscal 2025.
- Net cash used in operating activities was $22,482, compared with $674,983 in fiscal 2025, an improvement of approximately $652,500.
- Cash and cash equivalents at year-end were $220,927, compared with $160,879 at May 31, 2025.
These figures are taken from the Company's audited consolidated financial statements, which report revenue of $13,438,707, gross profit of $3,421,042 and a net loss attributable to common shareholders of $221,387.
Second-Half Results
Results improved in the second half of fiscal 2026. In Q3 and Q4 combined, Nerds On Site generated approximately $6.65 million in revenue and approximately $111,000 in profit attributable to common shareholders.
- Q3 fiscal 2026: revenue of approximately $3.28 million and profit attributable to common shareholders of approximately $52,000.
- Q4 fiscal 2026: revenue of approximately $3.36 million and profit attributable to common shareholders of approximately $59,000.
Both quarters were profitable, an improvement over the first half of the year, and they contributed significantly to the improved full-year results.
Expense Management
SG&A expenses decreased by approximately $349,000, or 10%, while revenue increased 11%. SG&A fell from approximately 30% of revenue in fiscal 2025 to approximately 25% in fiscal 2026. The Company's MD&A attributes the decrease mainly to lower payroll and related costs, office and administrative expenses, business development costs and management remuneration.
As a result, the operating loss was reduced by approximately 95%, from $403,930 in fiscal 2025 to $21,908 in fiscal 2026.
"Fiscal 2026 demonstrates the operating leverage we have been working to create within Nerds On Site," said Charlie Regan, CEO of Nerds On Site. "We grew revenue by 11% while reducing SG&A by 10%, reduced our operating loss from more than $400,000 to approximately $22,000, and reduced operating cash usage by more than $650,000. Most importantly, we finished the year with two consecutive profitable quarters attributable to common shareholders."
"Our objective now is to build on that momentum. We believe the combination of our established managed IT business, cybersecurity capabilities, growing recurring Client relationships and newer growth initiatives provides NOS with a stronger operating platform entering Fiscal 2027."
Canadian Recurring Revenue
Canadian business recurring revenue was approximately $10.28 million in fiscal 2026, compared with approximately $9.18 million in fiscal 2025, an increase of approximately 12%.
Canadian residential recurring revenue was approximately $1.00 million, compared with approximately $858,000 in the prior year.
The Company considers recurring revenue a key part of its business model and a basis for longer-term revenue visibility.
Growth Initiatives
With the core managed IT business performing better, management is focusing on initiatives that expand the Company's addressable market, deepen existing Client relationships and add recurring revenue. There are three main areas of focus.
NOS Technical Services
NOS Technical Services started fiscal 2026 with significant opportunities in U.S. government technology staffing. During the year, this expected business was cancelled or disrupted because of U.S. federal spending reductions related to the Department of Government Efficiency ("DOGE") initiatives. The impact was larger because NOS Technical Services was still at an early stage in building its business and revenue base.
Management is now seeing pharmaceutical, commercial and some state-level technology staffing opportunities return, which could allow NOS Technical Services to rebuild its pipeline and resume its growth plans. The Company believes the experience, relationships and infrastructure NOS Technical Services has built will support these efforts as government technology spending and project activity return to normal levels.
Artificial Intelligence
AI is an increasingly important part of the Company's technology strategy. The Company's first priority is the security of its own data and its Clients' data, which is protected through its Sovereign Data Custody™ process. As part of this process, NOS uses only private LLMs, both internally and in all Client builds, so that no company data is exposed to or mixed with public LLMs. The Pre-emptive Defensive Zero Trust technology of ADAM Networks, an award-winning related-party company, is also a key part of this process.
NOS is working on AI in three areas:
- Internal operations: using AI to improve automation and productivity in the Company's operating platform, administrative processes and Client relationship management, and to get more useful information from its operating and Client data.
- Marketing and communications: using AI to identify Client needs, improve communications and find more relevant service opportunities.
- Client solutions: providing secure and practical AI capabilities to SME Clients. Rather than selling AI as a separate product, the Company plans to include it in its existing managed IT, cybersecurity and technology support services, tailored to each Client's environment.
ClientCare and Nerds On Line
NOS is combining its NOS ClientCare and Nerds On Line offerings into one service for small office/home office (SOHO) and residential Clients.
The combined service offers remote support through Nerds On Line for issues that can be resolved quickly online, and on-site support from a local Nerd when hands-on help is needed. Local, on-site support has long been one of Nerds On Site's strengths.
Management believes this "remote when possible, on-site when needed" model can make service more convenient for Clients, improve efficiency and help NOS build longer-term, recurring relationships with SOHO and home Clients.
Together with the Company's established managed IT and cybersecurity business, these initiatives give NOS three additional areas for future growth: U.S. technical staffing, AI-enabled services and productivity, and combined on-site and remote service for SOHO and residential Clients.
"We believe the next phase of Nerds On Site is about building on the operating progress we demonstrated in Fiscal 2026," said Charlie Regan. "NOS Technical Services is beginning to see opportunities return; AI is creating opportunities both inside our Company and in the solutions we can deliver to Clients; and the combination of ClientCare and Nerds On Line gives us an opportunity to provide our SOHO and home Clients with the best of both worlds: remote support when possible and a Nerd on site when needed."
Three-Year Revenue
| Fiscal Year | Revenue | Gross Profit |
|---|---|---|
| FY2024 | $10.95M | $2.80M |
| FY2025 | $12.09M | $3.24M |
| FY2026 | $13.44M | $3.42M |
From fiscal 2024 to fiscal 2026, revenue increased by approximately 23% and gross profit by approximately 22%.
Fiscal 2027 Priorities
In fiscal 2027, management plans to continue focusing on improving operating performance, managing expenses and working capital, and growing recurring managed IT, cybersecurity and technical services revenue. These priorities are consistent with the Company's year-end financial statement disclosure.
The Company believes the improvements made in fiscal 2026 give it a stronger base for future growth.
"Fiscal 2026 was about proving that revenue growth and operating discipline can work together," added Regan. "We enter Fiscal 2027 focused on converting that progress into sustained profitability, stronger cash generation and long-term shareholder value."
About Nerds On Site Inc.
Nerds On Site Inc. provides managed information technology, cybersecurity, hardware, software and related support services to small and medium-sized businesses. The Company operates in Canada and the United States through its network of technology professionals and its centralized IAMANERD.COM operating platform. The Company also operates Nerds On Site USA Inc., through which it holds a 50.1% interest in NOS Technical Services Inc.
Nerds On Site's mission is "Driving up the Pleasure, Productivity and Profitability of Technology in the lives of our SME and corporate Clients across Canada and the USA."
Investor Relations
Charles Regan
Nerds On Site Inc.
+1 519-639-4382
CSE: NERD, OTCQB: NOSUF
Forward-Looking Information
This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements regarding the Company's business strategy, growth opportunities, expansion of recurring managed IT, cybersecurity and technical services revenue, operating performance, profitability, cash generation, new service offerings, market expansion and the Company's plans and objectives for fiscal 2027 and beyond.
Forward-looking statements are based on management's current expectations, estimates, projections, assumptions and beliefs and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, except as required by applicable securities laws. The Company's MD&A also cautions that forward-looking information is subject to numerous risks and uncertainties and should not be unduly relied upon.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.