Earnings call transcript: Pivotree posts stronger pipeline in Q2 2026

Pivotree's Q2 2026 earnings call highlighted a strategic shift towards AI-enabled services, resulting in stronger pipeline and improved financial metrics. The company reported CAD 12.6 million in revenue and CAD 900,000 in adjusted EBITDA for the quarter. AI services accounted for 22% of revenue. Stock prices rose 2.86% to $1.44, placing the shares near the lower end of its 52-week range.

Pivotree described the quarter as a transition period, working to move away from legacy services and toward AI-enabled delivery. Management noted bookings improved sequentially, excluding certain legacy categories, with demand strongest in data, commerce, and integration. However, revenue was pressured by the wind-down of older managed services and slower customer decisions on new system work.

Pivotree's financial strength is evident, with a current ratio of 20.11, indicating more cash than debt on the balance sheet. The company holds a market cap of $14 million and a "GOOD" Financial Health score, positioning it well for future growth. The company also bought back 241,000 shares in the first half of 2026, valued at CAD 400,000.

Management expects near-term margins to remain steady, with longer-term improvement tied to a richer mix of MIPS and AI-enabled managed services. CEO Bill Di Nardo emphasized that Pivotree is a technology services firm helping clients drive toward a frictionless buying experience for their customers, utilizing AI as a practical accelerant.