As always, would appreciate your viewpoint.
Loss of 5c per share missed estimates of -3.2c. Revenue of $37.3M beat estimates of $36.9M. EBITDA of $0.57M beat estimates of $71K. National Bank downgraded the stock, RBC affirmed its outperform. The quarter itself was not so bad, but CVO brought down the upper end of its 2026 guidance, which was largely due to the reduction of of a single large customer's renegotiated contract. Of course, investors do not like the term 'renegotiated'. The analysts following the company indicate it may take a sustained re-acceleration of growth to get investors back on board. Revenue did rise 14% in the quarter, and AI solutions represented 35% of new bookings. CVO remains net debt-free with $90M cash. Cash flow remains low ($2.9M over 12 months). The sell of is justified here to some degree, but 25% seems a bit too harsh to us based on the forecast.