DATA Communications Management Corp. Q3 2026 Earnings Recap

DCM’s shares rose 10.6% after the company reported a return to organic growth, with revenue up 8.2% and adjusted EBITDA up to $15.9 million. Higher gross margins and stronger year-to-date free cash flow added to the positive picture, though the quarter’s adjusted net income included several sizable adjustments.

Key Takeaways

• Revenue was $114 million, up 8.2% year over year; organic growth was 2.9%, with management reporting improvement in the underlying business from Q1 through Q3.
• Gross profit increased 22.7% to $30.2 million. Gross margin expanded to 26.5% from 23.4%, reflecting improved core-business mix and Octacom’s higher-margin contribution.
• Adjusted EBITDA rose to $15.9 million from $12.3 million, and its margin increased to 13.9% from 11.7%.
• Year-to-date free cash flow was $15.5 million, versus $8.2 million a year earlier; cash from operations was $27.3 million, up from $16.8 million.
• Adjusted net income was $1.3 million versus about $0.1 million a year ago. The company cited debt-modification charges, restructuring and integration costs, and net fair-value gains among its adjustments; it expects organic growth to continue in Q4.