BuildDirect Reports Second Quarter 2026 Financial Results

• Revenue increased 16.6% to $19.7M in Q2 2026 compared to $16.9M in Q2 2025.
• Gross profit increased 14.7% to $7.7M in Q2 2026 compared to $6.7M in Q2 2025.
• Gross margin of 39.2% in Q2 2026 compared to 39.9% in Q2 2025.
• Sequentially, revenue increased 34.7% and gross profit increased 31.4% in Q2 2026 compared to Q1 2026, with Adjusted EBITDA improving to $0.4M in Q2 2026 from $(0.3)M in Q1 2026.
• Generated positive operating cash flow of $0.45M in Q2 2026.
• Completed the acquisition of Tile Outlets of America ("TOA"), adding three specialty tile retail showrooms in Tampa, Sarasota and Fort Myers, Florida.
• Pro Centers represented 77% of consolidated revenue during Q2 2026.
• Company to host Second Quarter 2026 financial results conference call on Wednesday, August 26 at 1:15 PM PDT / 4:15 PM EDT.

BuildDirect reports in U.S. dollars and in accordance with IFRS Accounting Standards.

Vancouver, British Columbia--(Newsfile Corp. - August 26, 2026) - BuildDirect.com Technologies Inc. (TSXV: BILD) (OTCQB: BDCTF) ("BuildDirect" or the "Company") a leading omnichannel flooring material retailer, today announced its financial results for the second quarter ended June 30, 2026 ("Q2 2026").

"BuildDirect delivered strong top-line growth during the second quarter, with revenue increasing 16.6% year-over-year to $19.7 million and gross profit increasing 14.7% to $7.7 million," said Shawn Wilson, CEO of BuildDirect. "Our Pro Center platform represented 77% of total quarterly revenue, and the addition of Tile Outlets of America further expanded our presence in the important Florida market. At the same time, we continued to generate positive operating cash flow while maintaining a disciplined approach to managing costs across the business."

Shawn continued, "Just as important as the year-over-year comparison is the rebound from the first quarter. Revenue increased 34.7% sequentially from $14.6 million in Q1 2026, well ahead of the 11.7% sequential increase we saw over the same period last year, and gross profit increased 31.4% to $7.7 million. The net loss narrowed from $1.8 million in Q1 2026 to $0.2 million in Q2 2026, and Adjusted EBITDA improved by approximately $0.7 million, swinging from negative $0.3 million in Q1 2026 to positive $0.4 million in Q2 2026. That improvement reflects the contribution and bargain purchase gain from Tile Outlets of America, along with better execution across our existing Pro Center and E-Commerce operations."

Shawn added, "The acquisition of Tile Outlets of America represents another important step in our strategy to build a larger, more diversified Pro Center network across North America. While underlying market conditions remained challenging during the quarter, we continue to focus on integrating our recent acquisitions, improving operating performance across our existing locations and pursuing opportunities that can generate attractive long-term returns. We believe our expanding footprint, omnichannel platform and disciplined acquisition strategy position BuildDirect well to capture additional market share as industry conditions improve."

BuildDirect Second Quarter 2026 Financial Results Conference Call

Date: Wednesday, August 26, 2026
Time: 1:15 PM (PDT) / 4:15 PM (EDT)
Live Webinar: https://us02web.zoom.us/webinar/register/WN_VJC22B3aQbuN02ZxKPqqqA

The replay will be available approximately 24 hours after the completion of the conference call. In addition, an archived replay will be available on the Investor Relations section of the Company's website at https://ir.builddirect.com/financials/quarterly-results/.

Among other things, the Company will discuss the long-term financial outlook on the conference call and related materials will be available on the Company's website at https://ir.builddirect.com/financials/quarterly-results/. Investors should carefully review the factors, assumptions, risks, and uncertainties included in such related materials concerning the long-term financial outlook.

Second Quarter 2026 Financial Highlights

A. Financial Position

The following table summarizes the Company's financial position at June 30, 2026 and December 31, 2025.

B. Financial Results

The following table summarizes the Company's selected financial results for the three months ended June 30, 2026 and 2025.

¹A non-IFRS measure. See "Non-IFRS measures" for definitions and reconciliation of non-IFRS measures to the relevant IFRS Accounting Standards.

C. Revenue and Gross Profit per Segment

The Company reports results in two segments: (1) E-Commerce and (2) Pro Centers. We measure each reportable operating segment's performance based on revenue. The E-Commerce segment relates to our online platform while the Pro Center segment includes sales and installation revenue from brick-and-mortar locations.

The E-Commerce and Pro Center segments contributed 23% and 77% of sales, respectively, in Q2 2026 compared to 22% and 78%, respectively, in Q2 2025.

D. Working Capital

E. Quarterly Financial Information

2026 Outlook

BuildDirect remains focused on building a larger and more profitable omnichannel flooring platform through the continued expansion of its Pro Center network, disciplined strategic acquisitions and improvement of its E-Commerce operations.

The Company's priorities include:

• Pro Center Expansion: Continue expanding the Company's physical footprint through targeted acquisitions and new locations, with an emphasis on sustainable growth and profitability.
• Integration of Recent Acquisitions: Continue integrating Greyne Custom Wood and Tile Outlets of America into BuildDirect's broader platform, including operating processes, sourcing capabilities, technology and inventory management.
• E-Commerce Optimization: Improve lead quality, digital marketing effectiveness, website performance and inventory availability while leveraging the Company's Pro Center network to efficiently fulfill customer orders.
• Operational Efficiency: Continue pursuing cost efficiencies across the Company's existing operations and acquired businesses through standardized processes, procurement initiatives, technology improvements and shared services.
• Disciplined M&A: Evaluate additional acquisition opportunities that can expand BuildDirect's geographic footprint, product offering and professional customer base while maintaining a disciplined approach to valuation and expected returns.

About BuildDirect

BuildDirect (TSXV: BILD) (OTCQB: BDCTF) is an expanding omnichannel flooring materials retailer, specializing in Pro Centers-strategic distribution hubs designed to serve professional contractors and trades. The Company is actively scaling its footprint through a combination of organic growth and strategic acquisitions, driving efficiency and market expansion. For more information, visit www.BuildDirect.com.

Forward-Looking Information:

This press release contains statements which constitute "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"), including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. These statements reflect management's current beliefs and expectations and are based on information currently available to management as at the date hereof.

Forward-looking statements in this press release may include, without limitation, statements relating to BuildDirect being in a strong position to keep building; BuildDirect's ongoing pursuit of a model focused on growing the Pro Center network, creating operating leverage and staying disciplined on returns; the Company building or acquiring strong locations, expanding its commercial reach, and growing EBITDA through better execution; the Company's acceleration of growth through the exploration of a combination of new location builds and targeted strategic acquisitions; the Company's expansion of its geographic footprint, deepening supplier relationships, and enhancing its service capabilities for professional customers; the Company's delivery of strong returns and capturing market share in both core and emerging regions; the Company's focus on driving EBITDA growth through improved operational efficiency and the continued development of its commercial sales channel; the Company being well-positioned to scale profitably while maintaining a high standard of customer service; and BuildDirect's unwavering commitment to pursue sustainable growth, operational excellence, and long-term value creation for its stakeholders.

Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. Among those factors are changes in consumer spending, inflation, availability of mortgage financing and consumer credit, changes in the housing market, changes in trade policies, tariffs or other applicable laws and regulations both locally and in foreign jurisdictions, availability and cost of goods from suppliers, fuel prices and other energy costs, interest rate and currency fluctuations, retention of key personnel and changes in general economic, business and political conditions and other factors referenced under the "Risks Factors" section of our MD&A. These forward-looking statements may be affected by risks and uncertainties in the business of the Company and general market conditions.

These factors should be considered carefully, and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release reflect the Company's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and BuildDirect assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

NON-IFRS MEASURES

This announcement refers to certain non-IFRS measures. These measures are not recognized measures under IFRS, and do not have a standardized meaning prescribed by IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS Accounting Standards measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS Accounting Standards. We use non-IFRS measures including "EBITDA" and "Adjusted EBITDA". Management uses these non-IFRS measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and to determine components of management compensation. As required by Canadian securities laws, we reconcile these non-IFRS measures to the most comparable IFRS Accounting Standards measures in this announcement. See below regarding definitions and reconciliation of these non-IFRS measures to the relevant reported measures. We define EBITDA as net income or loss before interest, income taxes, depreciation and amortization. Adjusted EBITDA removes fair value adjustments to financial liabilities, share-based compensation determined by option pricing models. Non-recurring items, such as restructuring costs, bargain purchase gains, or government grants are removed. Similarly, foreign exchange gains/losses and gains/losses on disposal of assets are excluded.

These measures are presented because we believe that our current and potential investors, and many analysts, use them to assess our current and future operating results and to make investment decisions. Management uses these measures in managing the business and making decisions. EBITDA and adjusted EBITDA are not intended as substitutes for IFRS measures.

EBITDA and Adjusted EBITDA for the three months ended June 30, 2026, and 2025

¹ EBITDA % is a ratio of EBITDA divided by Total Revenue

² Restructuring costs include approximately $131,900 of lease-exit and other one-time expenses.

² Adjusted EBITDA % is a ratio of Adjusted EBITDA divided by Total Revenue

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Condensed Consolidated Interim Statements of Financial Position
(Unaudited)
(Expressed in United States dollars)

Condensed Consolidated Interim Statements of Operations and Comprehensive Loss
(Unaudited)
(Expressed in United States dollars)

Condensed Consolidated Interim Statement of Changes in Equity (Deficiency)
(Unaudited)
(Expressed in United States dollars)

Condensed Consolidated Interim Statement of Cash Flows
(Unaudited)
(Expressed in United States dollars)

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/311558

You May Also Be Interested In

• Amazon's AWS to acquire DuckLabs, maker of DuckDB database
• SECUR3D Featured in CSE Issuer Update on AI-Powered Brand and IP Protection
• UBS Reiterates Buy Rating on Accenture plc (ACN) on Deal to Acquire McCoy