Positive adjusted EBITDA in Q4 marks a significant milestone, positioning the Company for sustained profitable growth driven by innovation for partners and enterprises.

   -- Adjusted EBITDA profitability in Q4 is an important milestone towards 
      achieving sustained profitable growth in the future. Management continues 
      to prioritize disciplined financial management with the aim of future 
      profitability. 
 
   -- The Company's focus on strengthening Mitel Performance Analytics $(MPA)$ 
      value to Enterprises and Partners has brought increased investment in 
      innovation and deeper integration into the Mitel ecosystem. 
 
   -- New releases of MPA enable expanded intelligence, automation and 
      artificial intelligence (AI) to support more proactive and efficient 
      operations. Recent Mitel event sponsorships in the United States and 
      Europe are driving new opportunities. 
 
   -- Management is exploring new Go-to-Market models with Mitel to expand MPA 
      beyond the current Software Assurance model into enterprise customers and 
      partners. 
 
   -- To address the broader partner and enterprise market, management is 
      leveraging longstanding industry relationships through a continuous 
      discovery program to systematically identify high-value market 
      opportunities for future innovation. 

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES./

OTTAWA, ON, June 11, 2026 /CNW/ - Martello Technologies Group Inc., ("Martello" or the "Company") (TSXV: MTLO), a provider of experience monitoring solutions for unified communications and collaboration $(UCC)$ systems, today released financial results for the three and twelve months ended March 31, 2026.

"I'm pleased that Martello has achieved a key objective of the Company's Q3 FY26 operational restructuring with positive adjusted EBITDA in Q4", said Jim Clark, Chief Executive Officer of Martello. "Management is focused on the continued strengthening of Martello's financial performance and generating positive operating cash flow. This focus, along with the Company's commitment to growth in the Mitel Performance Analytics business and building Martello's next innovative solution is expected to establish a strong foundation for profitable growth in the future".

"Martello's strategic partnership with Mitel continued to strengthen in FY26," said Terence Matthews, Chairman of Martello. "I'm pleased to see ongoing investment in Mitel Performance Analytics product innovation and management's strong focus on delivering capabilities that support integrated hybrid communications and the unique needs of mission-critical infrastructure, helping Mitel partners reduce operational costs while increasing customer satisfaction."

Q4 and FY26 Financial Highlights

 
Financial               March 31,    March 31,  March 31,    March 31, 
Highlights 
(in 000's)              2026         2025              2026        2025 
                        (Three months ended)    (Twelve months ended) 
Sales                $        2,797      3,376       11,872      14,531 
Cost of Goods Sold              268        468        1,675       2,000 
 
Gross Margin                  2,529      2,908       10,197      12,530 
Gross Margin         %       90.4 %     86.1 %       85.9 %      86.2 % 
Operating Expenses            1,866      4,249       21,564      16,669 
Profit (Loss) from 
 operations                     662    (1,341)     (11,367)     (4,138) 
Other 
 income/(expense)             (535)      (361)      (1,653)     (1,686) 
Profit (Loss) 
 before income tax              127    (1,701)     (13,020)     (5,824) 
Income tax 
 recovery                         -         94          (3)         128 
Net Profit (loss)               127    (1,607)     (13,024)     (5,696) 
Total 
 Comprehensive 
 Profit (Loss)       $           84    (1,580)     (12,822)     (5,877) 
 
EBITDA (1)           $          597      (734)     (10,187)     (2,193) 
Adjusted EBITDA 
 (1)                 $          504      (820)      (1,488)     (2,022) 
 
(1) Non-IFRS measure. See "Non-IFRS 
 Financial Measures". 
 
   -- Revenue was $11.87M in FY26 and $2.8M in Q4 FY26, representing an 18% and 
      17% decline respectively compared to the same period of the prior year. 
      The decline was primarily due to lower renewal rates on sunsetting legacy 
      product offerings. 
 
   -- Sunsetting legacy product revenue declined by 32% or $0.36M in Q4 FY26 
      compared to Q4 FY25, and by 33% or $1.76M in FY26 compared to FY25. The 
      ongoing decline of legacy product revenue is proceeding as expected. 
 
   -- Revenue from the Mitel business segment decreased by 6% in Q4 FY26 
      compared to the same period in the prior year, and by 8% in FY26 compared 
      to FY25. This decrease is primarily attributable to an expected shift in 
      the revenue mix from various MPA offerings that is now stabilizing. As 
      Mitel and Martello negotiate a new contract, management is exploring new 
      Go-to-Market models that represent a potential growth opportunity. The 
      Mitel business continues to be a significant source of revenue and gross 
      margin, representing 55% of total revenues in Q4 FY26 and 51% in FY26 
      (compared to 48% and 45% in the same periods of the prior year). Gross 
      margin in the Mitel business segment remained strong and consistent at 
      97% in Q4 FY26 and Q4 FY25. 
 
   -- 99% of total revenues were recurring in Q4 FY26 compared to 97% in Q4 
      FY25. In FY26 and FY25, 98% of revenues were recurring. 
 
   -- Monthly Recurring Revenue (MRR) totaled $0.93 million in Q4 FY26, 
      representing a decrease of $0.16 million (15%) compared to $1.09 million 
      in Q4 FY25. The decrease was primarily attributable to lower renewal 
      activity across legacy contracts and a shift in the revenue mix related 
      to Mitel's software assurance program. Vantage DX MRR declined by 9% in 
      Q4 FY26, mainly due to customer attrition. 
 
   -- Gross margin as a percentage of revenue was 90.4% in Q4 FY26 compared to 
      86.1% in Q4 FY25. This improvement is attributable to the decrease in 
      cost of goods sold in the Modern Workplace Optimization (MWO) segment in 
      connection with the operational restructuring in Q3 FY26. In the 2026 
      fiscal year, gross margin decreased slightly to 85.9% from 86.2% in FY25, 
      reflecting a proportionally larger decline in revenue relative to the 
      cost of sales. 
 
   -- Operating expenses for Q4 FY26 decreased by 56% or $2.38M to $1.87M from 
      $4.25M in Q4 FY25, primarily due to a decrease in headcount in connection 
      with the operational restructuring in Q3 FY26. In FY26, operating 
      expenses increased by 29% to $21.56M, attributable to the impairment of 
      intangible assets in the MWO segment, and to one-time termination costs 
      associated with the operational restructuring in Q3 FY26. Normalized for 
      impairment of intangible assets and termination costs associated with the 
      operational restructuring, operating expenses for the years ended March 
      31, 2026 and 2025 were $12.7M and $16.7M, respectively, which represents 
      a favourable decrease of 24%. 
 
   -- Income from operations was $0.66M in Q4 FY26 compared to a loss of $1.34M 
      in the same period of FY25. The improvement is attributable to lower 
      operating expenses as described above. In FY26, the loss from operations 
      was $11.37M, compared to a loss of $4.14M in FY25. The increase is 
      primarily attributable to a $6.09M impairment of intangible assets and 
      right of use assets and one-time termination costs of $2.7M. 
 
   -- EBITDA in Q4 2026 improved to positive $0.6M, compared to a loss of $0.7M 
      in Q4 FY25, primarily driven by lower headcount and vendor costs 
      following the operational restructuring. EBITDA for FY26 was a loss of 
      $10.2M, compared to a loss of $2.2M in FY25, primarily due to the 
      impairment of MWO intangible assets and one-time employee termination 
      costs associated with the operational restructuring. 
 
   -- Adjusted EBITDA (a non--IFRS measure) reached $0.50M in Q4 FY26, a 
      meaningful turnaround from a loss of $0.82M in Q4 FY25, driven by the 
      operational restructuring in Q3 FY26 and disciplined financial 
      management. 
 
   -- The Company's cash and short-term investments balance was $2.87M as of 
      March 31, 2026 (compared to $6.69M at March 31, 2025). The decrease was 
      primarily attributable to cash used in operating activities, mainly 
      driven by employee termination payouts and lower sales and partially 
      offset by a $2.0M loan received from Wesley Clover International in Q3 
      FY26. 

The financial statements, notes and Management Discussion and Analysis ("MD&A") are available under the Company's profile on SEDAR+ at www.sedarplus.ca, and on Martello's website at www.martellotech.com. The financial statements include the wholly-owned subsidiaries of Martello. All amounts are reported in Canadian dollars. MRR is a non-IFRS measure, representing average monthly recurring revenues earned in a fiscal quarter.

This press release does not constitute an offer of the securities of the Company for sale in the United States. The securities of the Company have not been registered under the United States Securities Act of 1933, (the "1933 Act") as amended, and may not be offered or sold within the United States absent registration or an exemption from registration under the 1933 Act.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About Martello Technologies Group

Martello (TSXV: MTLO) is a technology company that provides experience monitoring solutions for unified communications and collaboration (UCC) platforms including Mitel and Microsoft Teams. Martello is a public company headquartered in Ottawa, Canada. Learn more at http://www.martellotech.com

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

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods and " includes, but is not limited to, statements with respect to activities, events or developments that the Company expects or anticipates will or may occur in the future, including expectations regarding achieving sustained profitable growth in the future, the aim to identify and shape high-value market opportunities for future innovation, the aim to generate operational cash flow, the expectation that new Go-to-Market models for MPA will represent a potential growth opportunity and other activities, events or developments that the Company expects or anticipates will or may occur in the future.

Forward-looking information is neither a statement of historical fact nor assurance of future performance. Instead, forward-looking information is based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking information relates to the future, such statements are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking information. Therefore, you should not rely on any of the forward-looking information. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking information include, among others, the following:

   -- Continued volatility in the capital or credit markets and the uncertainty 
      of additional financing. 
 
   -- Our ability to maintain our current credit rating and the impact on our 
      funding costs and competitive position if we do not do so. 
 
   -- Changes in customer demand. 
 
   -- Disruptions to our technology network including computer systems and 
      software, as well as natural events such as severe weather, fires, floods 
      and earthquakes or man-made or other disruptions of our operating systems, 
      structures or equipment. 
 
   -- Delayed purchase timelines and disruptions to customer budgets, as well 
      as Martello's ability to maintain business continuity. 
 
   -- and other risks disclosed in the Company's filings with Canadian 
      Securities Regulators, which are available on the Company's profile on 
      SEDAR+ at www.sedarplus.ca. 

Any forward-looking information provided by the Company in this news release is based only on information currently available and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking information, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

SOURCE Martello Technologies Group Inc.

/CONTACT:

Copyright CNW Group 2026 
 

(END) Dow Jones Newswires

June 11, 2026 19:28 ET (23:28 GMT)