Nerds On Site Inc. (CSE: NERD) reported preliminary unaudited financial results for the second half of fiscal 2026, recording profit attributable to common shareholders in both the third and fourth quarters. This marks a significant operational improvement compared to the same period in fiscal 2025, when the company posted a loss in Q3 and a profit in Q4.

The combined six-month period generated approximately $111,000 in profit attributable to common shareholders, representing an improvement of approximately $214,000 against the combined loss of approximately $102,000 recorded in the corresponding fiscal 2025 period. The results are currently being audited and remain subject to adjustment.

Quarterly Performance Breakdown

In Q3 fiscal 2026 (ended February 28, 2026), revenue rose approximately 9% year-over-year to $3.28 million, up from $3.00 million in Q3 fiscal 2025. Gross profit expanded by approximately 24% to approximately $861,000, lifting the gross margin to approximately 26% from approximately 23% in the prior-year quarter. Selling, general and administrative (SG&A) expenses fell approximately 16% to approximately $758,000 from approximately $905,000. The company reported an operating profit of approximately $96,000, compared to an operating loss of approximately $221,000 in Q3 fiscal 2025.

Q4 fiscal 2026 (ended May 31, 2026) saw revenue decline approximately 6% to $3.36 million from $3.57 million in Q4 fiscal 2025. Despite the revenue contraction, gross profit remained robust at approximately $895,000, compared to approximately $1.08 million in the prior-year quarter. SG&A expenses dropped approximately 17% to approximately $790,000 from approximately $951,000. The company achieved an operating profit of approximately $98,000 and net profit attributable to common shareholders of approximately $59,000, compared to $136,000 and $96,000 respectively in Q4 fiscal 2025.

What the Numbers Show

The primary driver of the bottom-line improvement was disciplined cost management rather than top-line growth. Combined SG&A expenses for the second half of fiscal 2026 totaled approximately $1.55 million, down approximately 17% from approximately $1.86 million in the comparable fiscal 2025 period. This reduction of approximately $307,000 occurred while total revenue for the two quarters increased modestly to approximately $6.65 million from approximately $6.57 million. The divergence between flat revenue growth and significant expense contraction highlights improved operating leverage and efficiency in the company's cost structure.

Management Commentary

Charlie Regan, CEO of Nerds On Site Inc., emphasized the significance of delivering two consecutive profitable quarters. "A year ago, these same two quarters produced a combined loss attributable to common shareholders of approximately $102,000. This year they produced approximately $111,000 in combined profit — an improvement of more than $200,000," Regan said.

Regan noted that Q3 demonstrated the impact of revenue growth and gross profit expansion alongside expense discipline, while Q4 tested the business model under lower revenue conditions. "SG&A was approximately $161,000 lower than the comparable quarter, and we delivered our second consecutive quarter of positive earnings," he added.

The company remains focused on expanding recurring managed IT and cybersecurity revenue, increasing operating efficiency, and growing its U.S. presence.