Pivotree reported second-quarter 2026 revenue of CAD 12.6 million, with adjusted EBITDA of CAD 900,000, or 7.2% of revenue, according to an earnings call transcript published on August 18. The company’s gross margin improved 70 basis points year-over-year to 46.9%, while net loss narrowed to CAD 400,000, including a CAD 600,000 restructuring charge.
Operating cash flow totaled CAD 1.2 million, up from CAD 700,000 in the same period a year earlier, and the cash balance increased by CAD 600,000 to CAD 13 million, the highest since the first quarter of 2023. Bookings reached CAD 12.5 million for the quarter, with CAD 10.6 million excluding legacy units LMS, MIPS, and PS, representing an 18% sequential increase.
AI-enabled services contributed 22% of total revenue in Q2, with Professional Services revenue now 33% AI-driven and approaching 50% by month-end June. The company’s workforce achieved full basic AI training, and 63% of employees were using AI tools daily. Eight new or transformed AI-enabled services were launched in the first half of 2026.
Pivotree repurchased 241,000 shares for CAD 400,000 in the first half under its normal course issuer bid. The stock rose 2.86% in premarket trading to CAD 1.44, within a 52-week range of CAD 1.32 to CAD 1.89.
During the call, CEO Bill Di Nardo emphasized Pivotree’s focus on enabling frictionless customer experiences through technology services rather than AI as a buzzword. CFO Mo Ashoor highlighted managed services as a key driver of gross margins above 60%. The company cited a specialty retailer engagement that expanded from a CAD 1 million project to a CAD 3 million multi-year AI-powered service, with AI tools reducing delivery time by 50% to 70%.
