Earnings call transcript: Avante Logixx Q1 2026 sees revenue growth

In its Q1 2026 earnings call, Avante Logixx Inc reported a notable increase in revenue, surpassing analyst expectations. The company achieved a revenue of $8.8 million, representing an 11% year-over-year increase, contributing to its impressive 35.32% revenue growth over the last twelve months. Despite posting an earnings per share (EPS) of -0.03, which missed expectations, the revenue surprise of 12.92% buoyed investor sentiment. Following the announcement, Avante’s stock price saw a 3.53% increase, trading at $0.82. According to InvestingPro analysis, the company currently trades slightly above its Fair Value, with several key metrics suggesting both strengths and challenges ahead.

Key Takeaways

• Avante Logixx reported an 11% increase in revenue year-over-year.
• The company achieved a 12.92% revenue surprise, surpassing forecasts.
• Stock price rose by 3.53% following the earnings announcement.

Company Performance

Avante Logixx demonstrated strong performance in Q1 2026, with revenue increasing by 11% compared to the previous year. The company’s growth was driven by its recurring monthly revenue, which surged 25% to $4.1 million, accounting for 46% of total revenue. This strong performance underscores Avante’s ability to maintain a high client retention rate of 98% and leverage its innovative product offerings.

Financial Highlights

• Revenue: $8.8 million, up 11% year-over-year
• Gross Profit: $3.3 million, up 10%
• Gross Margin: 37.9%
• Adjusted EBITDA: $360,000
• Net Income: $11,000, a 109% improvement

Earnings vs. Forecast

Avante Logixx reported an EPS of -0.03, missing analyst forecasts. However, the company exceeded revenue expectations with a 12.92% surprise, reporting $9.35 million against a forecast of $8.28 million. This revenue beat marks a positive deviation from previous quarters, where the company faced challenges in meeting expectations.

Market Reaction

Following the earnings announcement, Avante Logixx’s stock price increased by 3.53%, reaching $0.82. This movement reflects investor confidence in the company’s revenue growth and strategic initiatives, despite the EPS miss. The stock’s performance is notable given its 52-week range of $0.68 to $1.52, positioning it closer to the lower end of the spectrum.

Outlook & Guidance

Looking forward, Avante Logixx aims to achieve a 14-15% adjusted EBITDA and continue its revenue growth trajectory. The company is focusing on international expansion and exploring potential acquisitions to enhance its market presence. Long-term objectives include increasing recurring monthly revenue and adjusted net income per share. With a market capitalization of $16.93 million and promising growth metrics, detailed analysis of Avante’s potential is available in the comprehensive Pro Research Report on InvestingPro, part of their coverage of over 1,400 stocks with deep-dive analysis and actionable insights.

Executive Commentary

CEO Emmanuel Manuchos emphasized the company’s comprehensive service offerings, stating, "We are a full suite service provider under one roof." He also highlighted Avante’s commitment to innovation, adding, "Innovation remains at the heart of our strategy." These statements underscore the company’s strategic focus on leveraging technology to drive growth.

Risks and Challenges

• Geopolitical tensions may impact international expansion plans.
• Challenges in securing public sector funding for the Verified product in the US.
• Potential market saturation in the security solutions sector.

Q&A

During the earnings call, analysts inquired about the growth of the NSSG segment, which was attributed to collaborative sales strategies. There was also interest in the positive feedback for the WALL E product and concerns regarding funding challenges for Verified. The company confirmed it is actively exploring M&A opportunities to bolster its growth strategy.

Full transcript - Avante Logixx Inc (XX) Q1 2026:

Rajan Sohal, Moderator, Avante: Good morning, everyone. We will be starting in one minute. Thank you everyone for joining us today, and welcome to Avante’s First Quarter Investor Webinar. My name is Rajan Sohal, and I will be the moderator for today’s call. Joining me on the call today are Emmanuel Manuchos, Founder and CEO of Avante and Raj Kapoor, the company’s CFO.

This call is being recorded. There will be a question and answer session at the end of the call. I trust that everyone has received a copy of our financial results press release that was issued yesterday. Listeners are also encouraged to download a copy of our quarterly financial statements and management discussion and analysis from sedarplus.ca. Please note portions of today’s call other than historical performance include statements of forward looking information within the meaning of applicable securities laws.

These statements are made under the Safe Harbor provisions of those laws. Forward looking statements that are based on management’s current views and assumptions and that this discussion is qualified in its entirety by the cautionary note regarding forward looking statements that is appended to our news release. Please review our press release and Avante’s reports filed on SEDAR plus for various factors that could cause actual results to differ materially from the projections. We use terms such as gross profit, gross margin, adjusted EBITDA and RMR on this conference call, which are non IFRS and non GAAP measures. For more information on how we define these terms, please refer to the definitions set out in our management discussion and analysis.

And with that, let me turn the call over to Mr. Emmanuel Minuchos, Founder and CEO.

Emmanuel Manuchos, Founder and CEO, Avante: Thank you, Rajan, and welcome, everyone. We truly appreciate everyone joining us today. On today’s call, our CFO, Raj Kapoor, will review our q one results, and I will provide general update and business overview of where the company is today and our positive outlook. Before we get into the financial results, I will provide a high level overview of Avante. Avante is a leading provider of security operatives and technology enabled security solutions to residential, commercial, and institutional clients.

Avanti’s mission is to deliver an elevated level of service globally with white glove mentality to high network families and corporations alike through advanced solutions and methods of detecting conditions that require immediate response. The company has developed a diversified security platform that leverages advanced technology solutions to provide a superior level of security services. Avanti is headquartered in Toronto, Ontario, and we have approximately 215 employees in the company. Today, the security landscape for high net worth individuals has become more complex than ever with rising geopolitical tension, increasing incident of targeted crime, and growing concerns over personal safety. The need for sophisticated security solutions has never been greater.

High profile individuals are no longer just seeking traditional protection. They require comprehensive, proactive measures that integrate advanced technology with expert oversight. At Avante, we understand these evolving risks and are committed to providing elite security services that offer not only protection, but also peace of mind. On today’s call, I want to highlight the following topics. First is our q one financial results, which Raj will discuss in more detail shortly.

We are pleased with our results for the 2026 in which we delivered solid growth with revenues increasing 11% year over year and recurring monthly revenue up 25%. This performance was driven by strengths across all divisions, most notably NSSG, which delivered an exceptional 126 increase in revenue as our enhanced sales process and operational alignment continue to bear fruit. Our results reflect the continued momentum and we have built since streamlining operations, integrating recent acquisitions, and focusing on our highest margin tech enabled offerings. Our balance sheet remains strong as we remain bank debt free holding 4,700,000.0 in cash and 12,000,000 in available credit facility, giving us the flexibility to execute on our growth priorities. At the same time, we continue to create efficiencies to reduce operating costs through our new ERP system and by streamlining the company’s operations, resulting in a decrease in operating expenses over the quarter.

Second is the innovation at Avante that is driving our growth. Demand for our premium security solutions remain strong for Halo and the services it enables. We are energized by the growth potential of our next generation technology platforms. WALL E and Avanti Verified continue to gain momentum with strong engagement from institutions seeking advanced safety and security solutions. Both offering offerings have a healthy pipeline of opportunity, and we are focused on converting these into meaningful deployments in the coming quarters.

And lastly, our positive outlook for the remainder of the fiscal year yes. I would like to turn it over to Raj Kapoor right now, our CFO, who will discuss the first theme for today, our financial results for q one twenty twenty six. Raj?

Raj Kapoor, CFO, Avante: Thank you, Manny, and welcome, everyone. Our fiscal first quarter twenty twenty six results were as follows. The first quarter was another exceptional quarter for Avante as we increased revenue by 11% compared to the same quarter last year. Avante achieved quarterly revenues of $8,800,000 during Q1 twenty twenty six compared to revenue of $7,900,000 generated during Q1 twenty twenty five. This increase in revenue was driven by strong performance from NSSG, which delivered year over year growth of 126%.

Avante achieved gross profit of $3,300,000 in Q1 twenty twenty six compared to $3,000,000 during Q3 twenty twenty four, representing an increase of 10%. Avante’s gross margin in Q1 twenty twenty six was 37.9%, in line with 38% in Q1 twenty twenty five, indicating a consistent level of profitability. During Q1 twenty twenty six, Avante achieved positive adjusted EBITDA from continuing operations of $360,000 in line compared to positive adjusted EBITDA of $363,000 in Q1 twenty twenty five. I’m proud to report that Avante achieved positive net income in the quarter. Avante recorded net income from continuing operations of $11,000 in Q1 twenty twenty six compared to a net loss of $128,000 in Q1 twenty twenty five, representing an improvement of 109%.

I’d like to take a moment to highlight Avante’s current growth trajectory. On this slide, you’ll see a graphical view of our six year annual revenue. After a period of flat growth from fiscal twenty twenty through 2022, we have returned to a strong growth path over the last three years. Revenues increased by 35% in fiscal twenty twenty five compared to fiscal twenty twenty four. The growth has been driven by the onboarding of new customers through focused sales efforts and enhanced customer support and the launch of new services and strategic acquisitions such as NSSG.

Looking forward, we do not anticipate any further reorganization expenses. We have a very predictable business model as a significant portion of our revenue is reoccurring in nature. We continue to have strong visibility and predictability for future performance with over 46% of our revenue in fiscal Q1 coming from contracted reoccurring revenue. Our diversified security platform leveraging advanced technology solutions remained solid with reoccurring monthly revenues increasing by 25% in Q1. Avante delivered record recurring monthly revenues, or RMR, of $4,100,000 during the 2026, up from $3,300,000 during the company’s first quarter in the prior year.

The increase in recurring revenue was driven by net growth in monitoring customers, the introduction of new recurring services to the existing client base and increased recurring revenue from NSSG. Our client contracts are typically one year in length, and we continue to maintain a 98% client retention and renewal, demonstrating the value proposition and trust in our solutions. We continue to have a continuing healthy balance sheet. I’m pleased to report that we continue to have a strong balance sheet and are able to fund the company’s organic growth initiatives. We continue to have a positive outlook for the remainder of the fiscal year.

As of 06/30/2025, Avante is bank debt free and had $4,700,000 in cash and short term investments. The company has access to a senior secured revolver of 2,000,000 and a $10,000,000 unsecured term loan facility for a total of $12,000,000 all of which remains completely undrawn as of today. We feel confident to continue funding growth with cash flow from operations. Overall, the company is in very strong position going forward. We continue to have a positive outlook for the remainder of the fiscal year.

I will now turn the call back over to Manny.

Emmanuel Manuchos, Founder and CEO, Avante: Thank you, Raj. I will now discuss our second theme for today, how our innovation is driving growth at Avante. Our company was founded on the principle of combining cutting edge technology with the best in class security operatives. This still is the foundation of our business growth. Innovation remains at the heart of our strategy.

We are committed to scaling our proprietary technologies for mass use and emphasizing subscription based models to enhance recurring revenue. Our legacy of leadership and commitment to innovation continues to drive us as we build upon the strength the strong foundation and the shape of next chapter for Avante. Our pipeline of technology enabled security solutions continues to expand, and I’d like to take a moment to walk through three key offerings, Avante Black, Avante Verified, and Wally in greater detail. Launched in January 2023, Avante Black now represents over 13% of our total revenue. Avante Black represents the pinnacle of exclusive risk mitigation offering an unprecedented level of client experience that redefines how risk mitigation and crisis management are handled.

This elite offering has been built by assembling a team of experts, including veterans from the elite forces from various countries around the world who combine their expertise in cohort operations with tailored security solutions. Our investigation services are unparalleled, providing clients with the most comprehensive and accurate intelligence in the industry. This extends to a twenty four seven personal now being sorry. Personnel security protection supported by physical response team capable of acting within minutes when a threat arises. We also go beyond conventional security by offering safe houses for clients and their families who require heightened protection.

We currently have a safe house in operation protecting the family who was kidnapped. In addition, we proactively monitor reputational risk on social media, addressing and rectifying issues before they escalate. Avanti Black’s capabilities include in-depth background investigations to uncover potential threats and provide clients with a with a clear understanding of risk, technical surveillance countermeasures, ensuring client communication and operations remain secure, custom campaigns designed to protect clients and their corporations from targeted risk, ethical hacking to test and strengthen network security. Halo is an is an Avante AI driven video tracking and two way voice communication service. With the use of Halo video analytics, we can either warn the intruder using two way live voice or dispatch before an intruder can break into the home.

It is based on self learning technology that uses pattern based algorithms to recognize movement and characteristics. Halo sets itself apart with proprietary AI driven analytics that not only detect full body silhouettes, but even individual limbs, offering unmatched accuracy. Features such as instant detection, two way voice capabilities, and seamless integration with existing camera systems make Halo a market leader in next generation security solutions. In fact, Halo was approved by the Department of Defense for use in The US nuclear facilities, providing high level security with AI video. Since launching in the 2024, Halo has achieved significant market penetration, now viewing over 2,100 cameras across the Greater Toronto Area.

Healer represents a transformative step forward in neighborhood security, offering peace of mind to our clients while solidifying Avanti’s leadership in an AI driven security technology. We believe this innovation will drive growth, strengthen our market position, and deliver long term value to our stakeholders. Last November, we announced the launch of Avanti Verified and or our human in the loop remote video monitoring services, developed in partnership with Skyla Technologies. This service integrates Skyla and Halo’s AI capabilities in physical threat detection with Avanti’s expert human oversight to redefine the standards for security solutions. Avante Verify brings the strength of AI and human judgment.

Advanced AI algorithm continuously monitor video feeds and identify potential risk in real time while our human operators step in to validate and interpret incidents, ensuring rapid and accurate response. As the only visual AI company with multiple industry benchmarks and proprietary technology, Skyler brings unparalleled expertise. The use of this product has begun with k 12 schools currently monitoring four schools, three in New Mexico, and the Astero School Board for gun detection, and one here in Toronto. However, we are actively expanding the product into commercial security and defense. By offering clients this balanced adaptive solution, we’re ensuring that security decisions are precise, timely, and effective, ultimately empowering our clients with peace of mind and superior protection.

Turning to our latest innovation, E. This solution represents a major leap forward in autonomous security technology and is a prime example of how Avante and our Halo technology continues to push the boundaries of innovative innovation in the industry. WALL E is an unmanned solar powered security unit that integrates our proprietary HALO technology to provide real time surveillance and threat detection. Equipped with HALO AI driven video analytics, it can identify unauthorized individuals, detect weapons, and provide immediate alert to security teams. This ensures rapid response and heightened situational awareness in any environment.

Designed for versatility, WALL is ideal for a wide range of applications from securing large gatherings, corporate campuses, and construction sites to protecting schools, hospitals, and other public spaces. This mobility and ability to operate in remote locations make it a game changer for clients seeking effective, scalable solutions without the need for fixed infrastructure. With the increasing demand for advanced security solutions, we expect WALL E to be a significant contributor to our growth. We are ramping up production to the to deploy additional units in the coming months and are seeing strong interest from both public and private sectors. Currently, the deployment of the units is starting with production actively ramping up.

By combining sustainable design with cutting edge technology, Wally reinforces Avanti’s leadership in a secured security innovation and positions for us to continue success in this evolving market. I will now conclude with our final theme for today, our positive outlook for the remainder of fiscal twenty twenty six. Our outlook continues to look promising with increased sales, positive EBITDA, positive net income, a clean balance sheet and potential for future acquisitions. The company’s long term financial objective serves as a guide in developing our strategy and should not be considered as guidance. The company’s long term financial objectives are reach new record levels for revenue, recurring monthly revenue, and adjusted EBITDA.

Leverage NSSG’s footprint to increase international revenue and introduce technology to their clients. Achieve growth and adjusted net income per share, reinvest cash flow into the future business growth. I believe we have laid an excellent foundation for the company and have a positive outlook for the remainder of fiscal twenty twenty six. We expect continued improvement in revenue, cash flow and EBITDA driven by organic growth, introduction of new products and services and increasing NSSG revenues. We expect international revenue to continue to increase this calendar year as NSSG allows us to attract new clients globally and service them in the boutique manner that Avanti offers.

We are very excited about the potential growth opportunities with their latest services, WALL E and Avanti Verified. We are expecting overall revenue to to benefit over the next year from these new services. Meanwhile, we continue to actively seek new opportunities and expand and enhance our services through acquisitions. Finally, I wanna thank the entire team at Avante, including the employees whose hard work continues to elevate the company to higher levels. We want to thank our customers around the globe who trust and rely on us to use innovative technologies to manage risk and provide elevated security solutions and services.

Also, I’d like to thank you for all joining us on this call today. We look forward to providing more updates next quarter. I will now hand it over back to Rajan for questions.

Rajan Sohal, Moderator, Avante: Thank you, Manny. With that, we will now open the call to questions. To submit your questions, please use the Q and A button on the bottom of your screen. Please note that priority will be given to questions from analysts. We have Gabriel Young from Beacon Securities on the call.

Gabriel, if you could unmute your mic. Go ahead, please.

Gabriel Young, Analyst, Beacon Securities: Good morning. Thanks for taking my questions and congrats on all the progress. Just got a couple of things. Manny, can you talk a little bit about the NSSG pipeline? You obviously had a very strong quarter with that group.

And I’m curious to see whether the pipeline is there to support the current quarterly run rate of sort of 1,800,000.0 $1,900,000 a quarter.

Emmanuel Manuchos, Founder and CEO, Avante: Yes. So we’re helping NSSG with some strategic meetings and allow introducing technology to their clients, and that’s enabled them to just gain more and more leads coming in. So I do believe that they are on the path to for more growth. They do introduce Halo and Avanti technologies to their clients almost on every meeting or every lead that they get, which is allowing them to become more of a full service provider opposed to just the the manpower side. So I do believe that NSSG will have a very good quarter coming forward.

Gabriel Young, Analyst, Beacon Securities: Got you. No, I appreciate that. And then just on Wally, anything you can provide us in terms of you know, the types of customers that you’re seeing and that are that are engaged with you and maybe the quantum of, you know, towers you might expect to deploy over the you know, over a twelve to twenty four month time frame.

Emmanuel Manuchos, Founder and CEO, Avante: Well, the, you know, the customers that are calling us and interested in in what we’re doing with Wally are, you know, a lot of construction companies. But it’s interesting how, we’re getting more of a global reach, And there’s huge construction companies calling us to monitor certain areas. We have some government, discussions as well with various projects. So we, you know, we can’t really say what number of wall these are gonna be deployed, but I do believe that, you know, once we get the the ramp up of the manufacturing sorted out, which we have we had some delays with tariffs, and we’ve got that all under control now. I think it’s gonna be a very probably the biggest growth in Avante.

Gabriel Young, Analyst, Beacon Securities: Do you with the current manufacturing platform you in place right now, do you have any sort of sense of what your monthly production rate might look like?

Emmanuel Manuchos, Founder and CEO, Avante: The the production rate isn’t the problem. It’s it’s getting getting them shipped, you know, into Canada that has delayed us. But the, you know, the ramp up, we we can easily produce a 100 a month. These are big corporations that are manufacturing the WALL EYS for us. And they’re around the world.

We have three suppliers, one in The US, one in Canada, and one in China.

Gabriel Young, Analyst, Beacon Securities: Gotcha. That sounds helpful. And then with Verified, you know, what’s the sell selling cycle looking like for Verified in The US right now? Are you running into any sort of headwinds from a just given what’s happening on it from a macro perspective on with some of your public sector customers that you’re talking to?

Emmanuel Manuchos, Founder and CEO, Avante: It isn’t yes. It hasn’t grown as as quickly as we wanted to we expected it to grow. Funding for the states have been taken away, so it’s always been reduced. And the, school, projects were really, grants from the government of the state from the state. And, since that’s been reduced, it’s been a little bit of a struggle.

But interesting enough, we’ve been getting leads from corporations that want us to detect, gun detection around their building, around their offices. So, you know, maybe the schools have slowed down, but we definitely had more we have definitely more leads coming in and more discussions with corporations to enable their existing cameras to detect guns.

Gabriel Young, Analyst, Beacon Securities: Gotcha. It’s helpful. And and any sort of early feedback from the initial schools that you’re deployed in terms of how the the solution has has worked out?

Emmanuel Manuchos, Founder and CEO, Avante: Well, like like everything, you know, like everything we do, we go above and beyond expectations. So all the feedback has been positive. We’ve had situations where there is a kid with a drill, a battery operated drill, walking and pointing it to another another student, and we caught it instantly, informed the school, did the whole procedure, and they were just so happy with the the organization and how quick everything just happened. Fortunately, it wasn’t the gun, so that’s great.

Raj Kapoor, CFO, Avante: Gotcha. Awesome.

Gabriel Young, Analyst, Beacon Securities: Appreciate the feedback, and, Nick, congrats on the progress.

Emmanuel Manuchos, Founder and CEO, Avante: Thank you, Gabriel.

Rajan Sohal, Moderator, Avante: Thank you, Gabriel. We also have a question from Rob Goff of Fentum Financial. First question here, the NSSG acquisition has been very successful for the company, but it’s been some time since the company last made an acquisition. What is your current strategy when it comes to m and a, and what does the pipeline look like?

Emmanuel Manuchos, Founder and CEO, Avante: Well, you know, we’re actively entertaining security and tech acquisitions. We just don’t wanna jump into, and make that a priority just because we wanna have the headlines. We wanna make sure that we’re organized. We’re ready. We also wanna make sure that we’re negotiating, a fair, evaluation where, you know, some of these, you know, when you some of these founders may think that their value is much higher than what we what it really is.

So we are actively entertaining, and we’re looking. It just has to be the right deal at the right time.

Rajan Sohal, Moderator, Avante: Great. And a follow-up here from Rob Goff. Can you provide some more color on what drove the revenue growth at NSSG?

Emmanuel Manuchos, Founder and CEO, Avante: Well, we implemented a sales, you know, sales assistance and strategies. We meet with them. We collaborate with them every Thursday, and we have, and we assist in how to make a presentation. Before, they were presenting by themselves. Now we have one of the Avante managers and sales managers present on the presentation that they do to their clients.

And it’s teaching them how to just be more effective and what to talk about and how to read the room. So it’s more of a of a collaboration, and we’re implementing the Avanti side of marketing to them, and it’s working really well.

Rajan Sohal, Moderator, Avante: And last question here from Rob Goff. How do you differentiate yourself compared to other security vendors or providers in the market?

Emmanuel Manuchos, Founder and CEO, Avante: Well, we we’re really a unique company. You know, we can’t say we have or know of any competitors. We know we’re full suite of service provider under one roof. Big corporations are are attracted to our services because they made one phone number or they pushed a button on our app, and they could, connect with our control center, and we could provide whatever they need. We developed technology that is unique and, implement it to the use of our everyday, business.

So it’s just really other vendors are very unique. You know? They put in an alarm system or they do personal protection or they drive people around, but they don’t combine everything. And clients that are very busy, that are running big corporations, don’t want to remember who to call for a problem. They don’t wanna remember that they have to call their automation person who who put in the cameras.

And then the security company who’s monitoring the cameras, they just want one person to deal with or one corporate creation to deal with, and that’s what we offer.

Rajan Sohal, Moderator, Avante: Thank you, Manny. We also have a question from Daniel Rosenberg of Paradigm Capital. First question here, how has the feedback been with WALL E, the security tower? What’s in the pipeline, and when do you expect it to become more meaningful to the overall revenue mix?

Emmanuel Manuchos, Founder and CEO, Avante: I’m sorry. Can you repeat the question?

Rajan Sohal, Moderator, Avante: Sure. Yeah. How has the feedback been with Wally? What’s in the pipeline, and when do you expect it to become more meaningful to your overall revenue mix?

Emmanuel Manuchos, Founder and CEO, Avante: Well, the feedback from Wally’s has been very positive. We had a our first big project that we had, they were using another provider, and they couldn’t believe what we were able to offer. We were monitoring carbon dioxide. We were in in their in their tents. We were monitoring hidden areas where you can come behind some of the trailers where traditional camera towers can’t see through trailers.

So our WALL E’s are very innovative. Not only do we use Halo to detect limbs and feet and and areas where somebody can hide, but we have added technology that detects trespassers in areas where the cameras can’t see. So it’s been very, very positive. They’re a very happy customer. They they intend to use us more and more as their projects develop.

Now the other projects that we’re using, we’re catching people trespassing. Some people are camping on properties. So it’s been very, very positive. We’re also learning how to how to adjust to the trespassers. You know, because we’re a licensed security company with the ministry, we’re allowed to remove trespassers.

So once we detect somebody on a property or they camp out there or they’re trying to build a camp, our people go and remove them so the client doesn’t have to worry about how do they gonna get rid of these people. You can call the police, the police will take them away, and then just come back. With us, we, we assist, remove them, and then we and then we hang at the site, to make sure that they don’t come back.

Rajan Sohal, Moderator, Avante: Thank you, Manny. And a follow-up here from Daniel Rosenberg. What is your target gross margin profile for the company?

Raj Kapoor, CFO, Avante: So our our gross margin, was slightly less a little this this last quarter due to overtime. We expect our gross margins to be around 42% to 44% moving forward.

Rajan Sohal, Moderator, Avante: Thank you, Raj. And last question here from Daniel Rosenberg. What is the biggest driver of organic growth this year?

Raj Kapoor, CFO, Avante: The biggest driver is is primarily our our new products, WALL E and Avante verified. Our our traditional business continues to to have, strong growth as well, but, the big drivers are gonna be our new products.

Rajan Sohal, Moderator, Avante: Thank you, Raj. We also have Gianluca Tucci from Haywood Securities on the call. First question here, it seems as though NSSG is driving the bulk of your growth. Could you speak to the dynamics behind that and if there was any notable onetime revenue items in the quarter?

Emmanuel Manuchos, Founder and CEO, Avante: With with, NSSG, their cyber and sentiment, analysis of monitoring has generated their recurring revenue, and it seems to be catching on more and more as they as they detect a threat or a risk to some of their clients ahead of it happening. So just like Halo detects somebody trespassing on the property before they break into the home, NSSG cyber sentiment analysis and monitoring is detecting people that are talking negatively about their clients. So the growth is is of the recurring side of NSSG is a big piece.

Rajan Sohal, Moderator, Avante: Great. And follow-up on that from Gianluca Tucci. Recurring revenue saw a nice step up in the quarter. How does this growth split between existing customer spending and new customer spend?

Emmanuel Manuchos, Founder and CEO, Avante: I’m sorry. Say that again?

Rajan Sohal, Moderator, Avante: So recurring revenue saw a nice step up in the quarter. How does this growth split between existing customers spending more, and new new customer spend?

Raj Kapoor, CFO, Avante: It’s a combination of both. We had a a quite a a large, recurring revenue component from NSSG this quarter. But we we’re like like I previously mentioned, we’re you know, we are increasing sales in our core business as well as new products.

Rajan Sohal, Moderator, Avante: Thank you, Raj. And a last question here from mister Tucci. Is there anything particular on m and a m and a that you’re exploring? Any specific technologies or new markets?

Emmanuel Manuchos, Founder and CEO, Avante: We’d rather not talk about that. There’s there’s a few in the works, there’s it’s just something that, you know, when we when we actually get closer, we can probably share some information.

Rajan Sohal, Moderator, Avante: Thank you, Manny. And a question here from a listener. One of your goals going forward is to achieve new record levels for adjusted EBITDA. Can you provide some more details such as what is your expected EBITDA margin in the coming quarters and what you think you can achieve in the long term?

Raj Kapoor, CFO, Avante: So this year, we’re targeting, approximately 14% to 15%, adjusted EBITDA. We based off our plans, first quarter came in, in line with what we expected, and we’re expecting, that to increase over the fiscal year.

Rajan Sohal, Moderator, Avante: Thank you, Raj. There are no further questions. I will now pass the call back to Manny for closing remarks.

Emmanuel Manuchos, Founder and CEO, Avante: Thank you, Rajan. In closing, I want to thank everyone once again for joining our call today. Thank you too to the analysts for their questions. We look forward to our next update for Q2. Thank you, everybody.

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