Ciscom Corp. (CSE: CISC) (OTCQB: CISCF) reported higher third-quarter sales, improved gross margin and lower operating expenses as the advertising-technology company continued rebuilding its business following a challenging 2025.
Sales for the quarter ended September 30, 2026, increased 47.6% to C$7.71 million from C$5.22 million one year earlier, according to the company’s Q3 financial update.
Gross profit increased approximately 148% to C$1.46 million from C$588,000. The quarterly gross margin improved to 18.9% from 11.3%, while operating expenses declined 13.4% to C$940,000.
Ciscom reported quarterly operating profit, measured as EBITDA, of C$518,000, compared with C$152,000 in Q3 2025. EBITDA is a non-IFRS measure that excludes depreciation, amortization, share-based compensation and other noncash expenses.
For the first nine months of 2026, sales increased 14.5% to C$18.40 million. Gross profit rose 12.9% to C$3.70 million, although year-to-date gross margin decreased slightly to 20.1% from 20.4%.
The company reported C$616,000 in year-to-date “cash-based net income,” compared with a C$482,000 loss one year earlier. However, this is also a non-IFRS measure. Ciscom recorded C$841,000 in noncash expenses during the nine-month period, including share-based compensation, intangible-asset amortization and deferred charges.
The earnings release did not provide a corresponding IFRS net-income figure. The cash-based result therefore should not be interpreted as the company’s statutory net income.
Prior-year gross-profit comparisons were also adjusted for supplier credits connected with a customer’s bankruptcy filing. Ciscom directed investors to its management’s discussion and analysis for additional details about the adjustment.
“Operations were further streamlined, and we are introducing AI tools to accelerate our growth,” CEO Michel Pepin said.
Ciscom operates Prospect Media Group and Market Focus Direct, which provide data-driven advertising, media planning, analytics and direct-marketing services.
The company has also begun the internal beta rollout of its Prospect Intelligence Platform. PIP combines customer, media and business data with artificial intelligence, large language models and media-mix modeling to help clients evaluate marketing performance.
The platform includes Engage+, Mixography and Shopography. Ciscom plans to use the fourth quarter for testing and refinement before a full operational deployment targeted for January 2027. The company has not disclosed expected revenue from PIP or identified customers paying specifically for the platform.
Ciscom also reported progress reducing its debt. It fully repaid a C$3.5 million bank loan, reduced revolving-credit use to C$852,000 from C$2.17 million and lowered its convertible-debenture balance to C$755,000 from C$950,000.
Upcoming Catalysts
Ciscom’s next financial report will show whether the Q3 sales recovery and improved gross margin continue. Investors may also watch for the January 2027 operational deployment of PIP, adoption of its analytics products and disclosure about revenue generated by the platform.
Other developments include continued debt reduction and the performance of Ciscom’s traditional direct-mail and media businesses. Advertising activity can fluctuate with customer budgets and economic conditions, while the company’s profitability may differ materially depending on whether IFRS or management-defined non-IFRS measures are used.
Sources
- Ciscom reports Q3 2026 results
- Prospect Media introduces the Prospect Intelligence Platform
- Ciscom outlines its AI and data strategy
- Ciscom financial statements and MD&A
- SEDAR+ regulatory filings
Editorial Disclosure
This article is based entirely on publicly available company announcements and financial disclosures. Next Gen Tech Stocks was not compensated by Ciscom Corp. for this article, and the author holds no position in the securities mentioned. Company-reported financial figures and product claims have not been independently verified. EBITDA and “cash-based net income” are non-IFRS measures, and the company’s Q3 announcement did not provide a corresponding IFRS net-income figure. Certain prior-year comparisons were adjusted for supplier credits associated with a customer bankruptcy. Ciscom is a nano-cap issuer exposed to limited trading liquidity, customer concentration, advertising-market variability, debt, financing and technology-execution risks. Information is current as of October 27, 2026. This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Read the full disclaimer.
