Zedcor Revenue Jumps 68% to $22.7 Million on US Towers

Zedcor Inc (OTC: ZDCAF) reported record second-quarter fiscal 2026 revenue of $22.7 million, up 68% year over year, alongside record EBITDA, driven by record mobile surveillance tower deployments and a rapidly expanding US customer base; the shares last traded at 3.67, down 1.69% on 18 August 2026.

Zedcor Inc (OTC: ZDCAF) has put a number on its cross-border push. The security-technology company reported record second-quarter fiscal 2026 revenue of $22.7 million, a 68% increase, alongside record EBITDA, with management pointing to record mobile surveillance tower deployments and a fast-growing base of United States customers as the engines behind the result.

For a company whose business model is essentially renting out remotely monitored camera towers, a 68% revenue increase is less a pricing story than a units story. More towers in the field, billing on recurring contracts, produces more revenue — and, because the monitoring infrastructure behind those towers is shared, it tends to produce disproportionately more EBITDA. That is the mechanic the company is leaning on, and the record EBITDA figure disclosed on the earnings call suggests it is working as designed.

Why tower count matters more than price

Mobile surveillance towers are capital equipment that generate rental revenue. Each unit is bought or built once and then monetised month after month for as long as it stays deployed on a customer site — a construction project, an energy facility, a lay-down yard, a car dealership. The economics resemble equipment rental more than they resemble software, but they share one important trait with software: the incremental cost of monitoring the hundredth tower in a region is lower than the cost of monitoring the first.

That is why “record tower deployments” and “record EBITDA” appear in the same sentence in Zedcor’s disclosure. Fixed costs — the monitoring centre, the network, the software layer, the regional sales infrastructure — get spread across a larger installed base. Revenue growth of 68% flowing into record EBITDA implies operating leverage rather than a margin squeeze, though the company’s own reported figures are the only guide here and Zedcor did not, in what was disclosed, break the margin out in the summary.

The counterweight is capital intensity. Towers have to be paid for before they earn. A company deploying at record pace is, by definition, spending at pace on the fleet, which is why growth of this shape usually shows up as strong EBITDA and much thinner free cash flow until deployment normalises. Investors reading the full filing should look straight at capital expenditure, fleet utilisation and the split between rental and non-rental revenue.

The US expansion is the whole thesis now

The most consequential line in the release is not the revenue figure. It is the reference to a rapidly growing US customer base. The addressable market for mobile surveillance in the United States is a large multiple of the Canadian market, and it is served by a fragmented field of regional security contractors rather than by a small number of entrenched national incumbents. That is the kind of market structure that lets a disciplined operator with a repeatable deployment playbook grow quickly.

It is also the kind of market that punishes over-extension. Expanding into new US metros means new yards, new field technicians, new local sales coverage and working capital committed ahead of revenue. The margin profile of a mature Canadian region and a three-month-old American one are not the same thing, and a blended margin can mask that. The pace of tower additions is the variable to track quarter to quarter, because it is the pace that determines both the revenue trajectory and the cash drain.

Details of the quarter were reported by GuruFocus from the company’s earnings call.

The share price did not celebrate

ZDCAF last traded at 3.67, down 1.69% from the prior close of 3.74, with a session range of 3.61 to 3.70, as of the close on 18 August 2026. The market was closed at that point; those are last-trade figures, not live quotes.

That decline sat in a soft tape rather than standing out against it. The Nasdaq 100 tracker (NASDAQ: QQQ) closed at $717.51, down 1.69% — the same percentage decline — while the S&P 500 tracker (NYSEARCA: SPY) finished at $767.45, off 0.68%, and the Dow tracker (NYSEARCA: DIA) at $532.91, down 0.24%. In other words, a record quarter drew a move indistinguishable from the day’s growth-stock beta.

Two readings are available. The benign one is that ZDCAF trades thinly as an over-the-counter listing of a Canadian-domiciled operator, so the American ticker is a poor real-time referendum on results; price discovery for a company like this happens on its home listing and in the days after a call, not in a single session. The less benign one is that the market had already priced growth of this magnitude, and that a 68% print without an accompanying upgrade to the outlook simply confirms expectations rather than exceeding them.

What determines the next print

Three things will decide whether this quarter reads as an inflection or a peak.

• Deployment cadence. Record deployments in one quarter set a bar. Sequential tower additions — not year-over-year revenue — are the cleanest read on demand, because they lead revenue by a quarter or more.
• US revenue mix. The higher the American share of the top line, the more the growth story is a land-grab and the less it is a mature-market compounding story. Both can work; they carry different risk.
• Capital intensity and funding. Fleet growth has to be financed. Whether that comes from operating cash flow, debt or equity determines how much of the revenue growth reaches shareholders per share.

There is also the question of what happens to utilisation if North American non-residential construction activity cools. Mobile surveillance demand is tied to sites that exist temporarily — projects, yards, staging areas — and that makes the rental fleet cyclical in a way a fixed-installation security business is not. Record deployment into a strong construction cycle is a different proposition from record deployment into a slowing one.

Reading a growth print without the full margin picture

What Zedcor has disclosed establishes direction: revenue of $22.7 million, growth of 68%, records in both revenue and EBITDA, and a US business that is now material enough to be named as the driver. What the summary does not establish is the shape of the margin, the absolute EBITDA figure, or the capital cost of getting the towers into the field.

For anyone underwriting the story, the useful discipline is to treat the headline growth rate as a demand signal and reserve judgement on quality until the cash flow statement is in hand. Fast-growing rental fleets can look magnificent on an EBITDA line and unremarkable on free cash flow for several years running. That is not a criticism of the business model — it is how the model works — but it does mean the 68% figure answers fewer questions than it appears to.

Key facts

• Q2 2026 revenue: $22.7 million, up 68%
• ZDCAF last price: 3.67, -1.69% (close, 18 Aug 2026)
• Growth driver: Record mobile surveillance tower deployments and expanding US customer base
• Profitability: Record EBITDA reported alongside record revenue

Frequently asked questions

How much revenue did Zedcor report for the second quarter of fiscal 2026?

Zedcor reported quarterly revenue of $22.7 million for its fiscal second quarter of 2026, an increase of 68% year over year. The company also disclosed record EBITDA for the period. Management attributed the growth to record mobile surveillance tower deployments and a rapidly growing base of customers in the United States.

What drove Zedcor’s 68% revenue increase?

Two factors were identified: record deployments of the company’s mobile surveillance towers and a rapidly expanding US customer base. Because Zedcor’s towers generate recurring rental revenue for as long as they remain on a customer site, a higher deployed fleet count translates fairly directly into higher revenue in subsequent periods.

Where did ZDCAF shares close on 18 August 2026?

ZDCAF last traded at 3.67, down 1.69% from the previous close of 3.74, with a session range of 3.61 to 3.70 as of the close on 18 August 2026. The market was closed at that time, so these are last-trade figures rather than live quotes for a currently trading security.

Did the broader market fall on the same day?

Yes. The Nasdaq 100 tracker QQQ closed at $717.51, down 1.69%; the S&P 500 tracker SPY finished at $767.45, down 0.68%; and the Dow tracker DIA closed at $532.91, down 0.24%. ZDCAF’s decline matched the Nasdaq 100 tracker’s percentage move for the session.

Why does record EBITDA usually accompany record tower deployments?

The monitoring infrastructure behind a surveillance tower fleet — the monitoring centre, network and software — is largely a fixed cost. As more towers are deployed and billed, that fixed cost spreads across a larger installed base, so revenue growth can flow through to EBITDA at a faster rate than the underlying cost base grows.

What should investors watch in Zedcor’s next report?

Sequential tower additions rather than year-over-year revenue growth, since deployments lead revenue. Also the share of revenue coming from the United States, capital expenditure on the rental fleet, fleet utilisation, and how that capital spending is financed — operating cash flow, debt or equity — because each has a different effect on per-share value.

Sources

• Zedcor Inc (ZDCAF) (Q2 2026) Earnings Call Highlights: Record Revenue and EBITDA Fueled by US … — GuruFocus

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