Q1/F26: Poised For Stronger Growth/Margins; Strategic Review is Key NT Catalyst

研报英文原文证据摘录

Q1/F26: Poised For Stronger Growth/Margins; Strategic Review is Key NT Catalyst

Health Care Services & Technology

kneat.com, inc.

TD SECURITIES INC. - CANADA EARNINGS UPDATE

May 14, 2026

Price: C$5.00 (05/14/2026) Q1/F26: Poised For Stronger Growth/Margins;

Price Target: C$6.00 Strategic Review is Key NT Catalyst

BUY (1)

ESG SCORE: 68/100

David Kwan, CFA^ THE TD COWEN INSIGHT

604 654 3455

We think KSI's healthy but decelerating organic growth (>20%) is set to rebound in the coming

david.kwan@tdsecurities.com

quarters with margins also poised to improve, as it pushes to achieve positive Adj. EBITDA

Firuz Yakhyayev, CFA^ (cash R&D)/FCF this year (we assume F2027). The stock is up 45%+ from its recent 52-week low,

416 983 4186 driven primarily by news of the strategic review, which we think is the key NT catalyst.

firuz.yakhyayev@tdsecurities.com

Key Data See our previous note for a review of the results.

Symbol TSX: KSI-T

Impact: NEUTRAL

12-Month Div (Est.): C$0.00

12-Month Total 20.0% Organic growth set to rebound as macro headwinds gradually subside. In Q1, elongated

Return:

sales cycles and slower budget approvals continued to exert pressure on growth. However,

52-Week Range: C$6.75-C$3.30

while some challenges linger, KSI noted a stabilization in recent quarters and that its sales

Market Cap: C$481.7MM

pipeline is the strongest on record. Some slipped expansion deals have closed post-Q1 and KSI

Net Debt (MM): C$(24.8)

is optimistic that organic growth is set to pick up in the coming quarters.

Dil. Shares Out (MM): 96.3

Float Shares (mm): 76.6 We expect organic growth to start rebounding in Q2, in part aided by an easier comp, with

Float Cap ($mm): C$383 stronger H2/F26 growth driven by stronger pipeline conversion of large new logos (enterprise