BuildDirect reported a 16% year-over-year increase in revenue to CAD 19.7 million for the second quarter of 2026, driven primarily by acquisitions despite ongoing softness in the flooring industry. The company’s first-half revenue totaled CAD 34.3 million, up 7.2% from the same period in 2025.
Gross profit rose 14.7% to CAD 7.7 million, though gross margin declined 70 basis points to 39.2% year-over-year. The company narrowed its net loss to CAD 0.19 million from CAD 1.8 million in the prior quarter. Adjusted EBITDA swung to a positive CAD 0.39 million, compared with a negative CAD 0.34 million in Q1 2026 and CAD 0.6 million in Q2 2025.
Operating cash flow for the quarter was positive at CAD 0.45 million, while the cash balance declined to CAD 4.1 million as of June 30, 2026, from CAD 8.2 million at year-end 2025. The company drew CAD 4.8 million on its revolving credit facility, up from CAD 3.6 million at the end of 2025.
Same-store revenue excluding acquisitions fell about 4% year-over-year, reflecting broader industry weakness. The e-commerce segment posted CAD 4.5 million in revenue, up 22.8% year-over-year, largely due to the acquisition of Greyne Custom Wood. Excluding Greyne, e-commerce revenue declined roughly 12% on a same-store basis, with a gross margin of 48.3%.
The Pro Centers segment, which accounted for 77% of consolidated revenue, generated CAD 15.2 million in revenue, up 14.9% year-over-year. Excluding the Tile Outlets of America (TOA) acquisition, same-store revenue in this segment fell about 2%, with softness noted in Michigan locations. The segment’s gross margin stood at 36.5%, while adjusted EBITDA reached CAD 1.55 million for the quarter and CAD 2.17 million for the first half of 2026.
BuildDirect completed two acquisitions in the first half of 2026. Greyne Custom Wood was acquired on February 2 for CAD 1.3 million in Q2 revenue contribution, utilizing the company’s existing warehouse and logistics network. TOA was purchased on May 12 for approximately CAD 3.9 million in cash, adding three showrooms in Florida and contributing about CAD 2.2 million in revenue over the seven weeks following the deal. The acquisition generated a non-cash bargain purchase gain of CAD 1.08 million, excluded from adjusted EBITDA.
Total acquisition-related cash outlays for the first half of 2026 amounted to roughly CAD 4.5 million across both transactions. The company’s total assets increased by CAD 9 million to CAD 47.2 million.
BuildDirect’s stock was trading at CAD 2.60, up 1.96% in recent activity, with a 52-week range of CAD 1.87 to CAD 3.88.
