Black Diamond Reports First Quarter Results and Declares Dividend
CALGARY, Alberta, April 30, 2026 (GLOBE NEWSWIRE) -- Black Diamond Group Limited ("Black Diamond", the "Company" or "we"), (TSX:BDI), a leading provider of space rental and workforce accommodation solutions, today announced its operating and financial results for the three months ended March 31, 2026 (the "Quarter") compared with the three months ended March 31, 2025 (the "Comparative Quarter"). All financial figures are expressed in Canadian dollars.
Key Highlights from the Quarter
- Consolidated revenue for the Quarter of $130.0 million and Adjusted EBITDA1 for the Quarter of $32.0 million increased 27% and 21%, respectively, from the Comparative Quarter.
- Consolidated rental revenue for the Quarter of $43.8 million increased 16% from the Comparative Quarter. The Company’s consolidated contracted future rental revenue at the end of the Quarter remains healthy at $142.5 million despite a decrease of 12% compared to the Comparative Quarter.
- Total capital expenditures for the Quarter of $16.8 million were consistent with the Comparative Quarter. Total capital commitments at the end of the Quarter of $26.5 million signify the breadth of opportunities across the business.
- Workforce Solutions ("WFS") revenue of $81.5 million for the Quarter increased 54% from the Comparative Quarter, contributing to Adjusted EBITDA1 of $18.9 million up 48% from the Comparative Quarter. Increases were driven by higher lodge services revenue, up 226% from the Comparative Quarter and non-rental revenue, up 16% from the Comparative Quarter primarily due to contributions from recently acquired Royal Camp Services Ltd. ("Royal Camp").
- WFS room count at the end of the Quarter of 13,514 rooms grew by 77% from the Comparative Quarter due to the Royal Camp acquisition. WFS utilization of 56.5% leaves ample capacity for deployment of assets on prospective projects in the current robust bid and sales pipeline.
- Modular Space Solutions ("MSS") generated rental revenue of $26.8 million for the Quarter, up 5% from the Comparative Quarter contributing to Adjusted EBITDA1 of $19.4 million, which is in line with the Comparative Quarter. MSS utilization remains within the optimal range at 77.7% and average monthly rate per unit increased by 3% from the Comparative Quarter on a constant currency basis.
- MSS value-added products and services ("VAPS") revenue of $2.7 million for the Quarter was up 35% from the Comparative Quarter, driving VAPS as a % of Rental Revenue1 up 250 basis points from the Comparative Quarter to 10.8%.
- LodgeLink Total Trade Value1 of $32.7 million for the Quarter increased 52% from the Comparative Quarter, driving net revenue up 37% from the Comparative Quarter, to $3.7 million. Total Travel Segments sold in the Quarter of 154,979 increased 15% from the Comparative Quarter.
- Basic earnings per share ("EPS") declined to $0.04 per share from the Comparative Quarter, as a result of increased shares outstanding, higher stock based compensation expense and moderated activity in the Company's legacy WFS operations, partially offset by meaningful contributions from Royal Camp and stable performance from MSS.
- Net Debt1 of $330.7 million at the end of the Quarter was essentially unchanged since December 31, 2025. Net Debt to trailing twelve months ("TTM") Adjusted Leverage EBITDA1 of 2.1x remains at the low end of the Company's target range of 2.0x to 3.0x while available liquidity was $93.3 million at the end of the Quarter.
- Subsequent to the end of the Quarter, the Company expanded its secured asset-based credit facility (the “ABL Facility”) to $550.0 million from $425.0 million with no material amendments to the attractive terms.
- Subsequent to the end of the Quarter, the Company declared a second quarter dividend of $0.045 payable on or about July 15, 2026 to shareholders of record on June 30, 2026.
Outlook
Exiting the Quarter, Black Diamond is operating from a position of stability, supported by steady operating conditions, sustained supportive macro tailwinds in core end-markets and momentum across the core rental platform. Business performance within the current operating environment is within expectations and the Company’s diversified industrial services and rental platform is poised to deliver consistent near-term results with an accelerating growth cadence anticipated in the latter half of the year.
The MSS business continues to deliver compounding rental revenue growth driven by targeted fleet additions, modest average rental rate improvement and sustained utilization within the optimal range. While demand across most North American end-markets remains healthy, public sector funding uncertainty in the education vertical, particularly in the U.S., continues to contribute to variability in the sales and non‑rental revenue streams. The U.S. represents a meaningful growth opportunity, with an emerging emphasis on data centres and related infrastructure. In Canada, elevated construction and major infrastructure activity is translating into consistent customer demand and strength in this area of the business.
While the Quarter reflected modest softening of activity levels within the legacy WFS operations, this is viewed as transitory due to the significant increase in the WFS sales pipeline. The potential for major resource, infrastructure development and defense investment in Canada represents significant mid-to-long-term upside, and the current volume and diversity of projects within the bid pipeline reflects this evolving opportunity. Royal Camp is performing to expectations, underscoring the value of this recently acquired business. Canadian utilization has been relatively consistent, while significant room capacity exists and remains as a meaningful advantage for the platform as we move into a period of escalating customer demand. Australian activity continues to improve, while the U.S. sees ample opportunity for redeployment following a sizable contract coming to an end last year.
LodgeLink’s solid performance trends underscore that this innovative software-enabled service offering presents accretive potential for the Company, which is expected to further compound as the platform drives towards General Availability (GA) of its new 3.0 product that seamlessly automates the entire workforce travel workflow from project initiation to a targeted completion.
With strong liquidity and a leverage ratio at the low end of our target range, the Company has significant financial flexibility across all its capital allocation mechanisms, including fleet expansion, asset refurbishments, inorganic growth, debt repayment and return to shareholders through dividends or share repurchases. Management continues to believe that the highest returns are generated through organic reinvestment in the business and will maintain its disciplined approach to capital deployment, with the majority of growth capital for assets supported by long‑term take‑or‑pay contracts, in line with customer demand.
Looking ahead, the Company remains focused on scaling the platform, expanding its high‑margin, recurring rental revenue and driving long‑term value creation through disciplined execution. The current operating environment informs baseline confidence and the significant upside scenario underpins a positive outlook for continued performance throughout the year.
1Adjusted EBITDA, Total Trade Value and Net Debt are non-GAAP financial measures. VAPS as a % of Rental Revenue and Net Debt to TTM Adjusted Leverage EBITDA are non-GAAP ratios. Refer to the "Non-GAAP Financial Measures" section of this news release for more information on each non-GAAP financial measure and ratio.
First Quarter 2026 Financial Highlights
| Three months ended March 31, | |||
| ($ millions, except as noted) | 2026 | 2025 | Change |
| Financial Highlights | $ | $ | % |
| Total revenue | 130.0 | 102.2 | 27% |
| Gross profit | 54.0 | 44.3 | 22% |
| Administrative expenses | 23.5 | 19.4 | 21% |
| Adjusted EBITDA(1) | 32.0 | 26.5 | 21% |
| Adjusted EBIT(1) | 14.4 | 14.1 | 2% |
| Funds from Operations(1) | 30.2 | 26.5 | 14% |
| Per share ($) | 0.44 | 0.43 | 2% |
| Profit before income taxes | 4.7 | 7.5 | (37)% |
| Profit | 2.7 | 5.8 | (53)% |
| Earnings per share - Basic ($) | 0.04 | 0.10 | (60)% |
| Earnings per share - Diluted ($) | 0.04 | 0.09 | (56)% |
| Capital expenditures | 16.8 | 17.2 | (2)% |
| Property and equipment | 770.0 | 581.9 | 32% |
| Total assets | 1,027.7 | 753.3 | 36% |
| Long-term debt | 348.5 | 229.3 | 52% |
| Cash and cash equivalents | 18.7 | 12.7 | 47% |
| Return on Assets (%)(1) | 15.2% | 17.4% | (220) bps |
| Free Cashflow(1) | 17.8 | 16.9 | 5% |
| (1) Adjusted EBITDA, Adjusted EBIT, Funds from Operations and Free Cashflow are non-GAAP financial measures. Return on Assets is a non-GAAP ratio. Refer to the "Non-GAAP Financial Measures" section of this news release for more information on each non-GAAP financial measure and ratio. | |||
Additional Information
A copy of the Company's unaudited interim condensed consolidated financial statements for the three months ended March 31, 2026 and 2025 and related management's discussion and analysis have been filed with the Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca) and www.blackdiamondgroup.com.
About Black Diamond Group
Black Diamond is an industrial services and asset management company with two operating business units - MSS and WFS. We operate in Canada, the United States and Australia.
MSS through its principal brands, BOXX Modular, CLM and Schiavi, owns a large rental fleet of modular buildings of various types and sizes. Its network of local branches rent, sell, service and provide ancillary products and services to a diverse customer base in the construction, industrial, education, financial, and government sectors.
WFS, through its principal brands Black Diamond Lodging and Accommodations, Royal Camp, Summit Camps and Primco Dene Royal Camp Services Limited Partnership, owns a large rental fleet of modular accommodation assets of various types and offers a full range of catering and hospitality services both in concert with and independent of the provision of modular accommodation facilities. WFS rents, sells, services and provides ancillary products and services including turn-key operated camps with premium integrated catering and hospitality services to a wide array of customers in the resource, infrastructure, construction, disaster recovery and education sectors.
In addition, the WFS business unit also includes the Corporation’s wholly owned subsidiary, LodgeLink, which operates through a proprietary software platform, offering sophisticated solutions for workforce travel and logistics across North America, Australia and the Asia-Pacific region, enabling customers to efficiently manage the full travel cycle through a rapidly growing network of hotels, remote lodges and travel partners. LodgeLink solves the unique challenges associated with workforce crew travel and is complemented by Spencer Group of Companies’ high-touch boutique corporate travel management service.
Learn more at www.blackdiamondgroup.com.
For investor inquiries please contact Emma Covenden at 403-718-5062 or investor@blackdiamondgroup.com.
Conference Call
Black Diamond will hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) on Friday, May 1, 2026. CEO Trevor Haynes and CFO Toby LaBrie will discuss Black Diamond’s financial results for the Quarter and then take questions from investors and analysts.
To access the conference call by telephone dial toll free 1-800-715-9871. International callers should use 1-647-932-3411. Please connect approximately 10 minutes prior to the beginning of the call.
To access the call via webcast, please log into the webcast link 10 minutes before the start time at:
https://www.gowebcasting.com/14652
Following the conference call, a replay will be available on the Investor Centre section of the Company’s website at www.blackdiamondgroup.com, under Presentations & Events.
Reader Advisory
Forward-Looking Statements
Certain information set forth in this news release contains forward-looking statements including, but not limited to, the Company's outlook for 2026, expectations for and opportunities in different geographic areas, opportunities for organic investment, reinvesting operating cash flows, capital commitments, targeted completion of LodgeLink's new 3.0 product, the Company's ability to fund organic and inorganic growth, management’s goals and business objectives, the sales and opportunity pipeline, timing and payment of the Company's quarterly dividends, macro-economic uncertainty, utilization levels, management's assessment of Black Diamond's future operations and what may have an impact on them, expectations regarding the rental rate environment, opportunities and effect of deploying investment capital, financial performance, business prospects and opportunities, changing operating environment including changing activity levels, effects on demand and performance based on the changing operating environment, expectations for demand and growth in the Company’s operating and customer segments, future deployment of assets, amount of revenue anticipated to be derived from current contracts, liquidity demands and sources, liquidity, expected length of existing contracts and future growth and profitability of the Company. With respect to the forward-looking statements in this news release, Black Diamond has made assumptions regarding, among other things: future commodity prices, the future interest rate environment, that Black Diamond will continue to raise sufficient capital to fund its business plans in a manner consistent with past operations, timing and cost estimates of the new Enterprise Resource Planning system, the effects of tariffs and trade-war related measures, that counterparties to contracts will perform the contracts as written and that there will be no unforeseen material delays in contracted projects. Although Black Diamond believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurances that such expectations or assumptions will prove to be correct. Readers are cautioned that assumptions used in the preparation of such statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of Black Diamond. These risks include, but are not limited to: the volatility of industry conditions, dependence on agreements and contracts, competition, credit risk, information technology systems and cyber security, vulnerability to market changes, operating risks and insurance, weakness in industrial construction and infrastructure developments, weakness in natural resource industries, access to additional financing, dependence on suppliers and manufacturers, reliance on key personnel, workforce availability, market price of Common Shares, safety performance, expansion into new activities, government regulation, failure to realize anticipated benefits of acquisitions and dispositions, inflationary price pressure, environmental liability, environmental regulation of the Company’s customers, environmental disasters, Indigenous relationships, dilution, disease outbreaks, variations in foreign exchange rates and interest rates, foreign operations, dependence on operating permits, maturity of credit facility, management of growth, seasonality in certain customer markets, litigation, potential replacement or reduced use of products and services, income taxes, conflicts of interest, restrictive covenants and leverage, the effects of tariffs and trade-war related measures and forward-looking information may prove inaccurate. The risks outlined above should not be construed as exhaustive. Additional information on these and other factors that could affect Black Diamond's operations and financial results are included in Black Diamond’s annual information form for the year ended December 31, 2025 and other reports on file with the Canadian securities regulatory authorities which can be accessed on Black Diamond's profile on SEDAR+. Readers are cautioned not to place undue reliance on these forward-looking statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update or revise any of the forward-looking statements, except as may be required by applicable securities laws.
Non-GAAP Financial Measures
In this news release, the following specified financial measures and ratios have been disclosed: Adjusted EBITDA, Adjusted EBIT, Adjusted EBITDA as a % of Revenue, Net Debt, Net Debt to TTM Adjusted Leverage EBITDA, Funds from Operations, Free Cashflow, Gross Profit Margin, Return on Assets, VAPS as a % of Rental Revenue, Total Trade Value, Net Revenue Margin and Net Capital Expenditures. These non-GAAP financial measures do not have any standardized meaning prescribed under International Financial Reporting Standards ("IFRS") and are therefore unlikely to be comparable to similar measures presented by other entities. Readers are cautioned that the non-GAAP financial measures are not alternatives to measures under IFRS and should not, on their own, be construed as an indicator of Black Diamond's performance or cash flows, a measure of liquidity or as a measure of actual return on the shares of Black Diamond. These non-GAAP financial measures should only be used in conjunction with the consolidated financial statements of Black Diamond.
Adjusted EBITDA is not a measure recognized under IFRS and does not have a standardized meaning prescribed by IFRS. Adjusted EBITDA refers to consolidated earnings before finance costs, tax expense, depreciation and amortization, accretion, foreign exchange, share-based compensation, non-controlling interests, write-down of property and equipment, impairment, gain on disposal of assets and non-recurring costs.
Black Diamond uses Adjusted EBITDA primarily as a measure of operating performance. Management believes that operating performance, as determined by Adjusted EBITDA, is meaningful because it presents the performance of the Company's operations on a basis which excludes the impact of certain non-cash items as well as how the operations have been financed. In addition, management presents Adjusted EBITDA because it considers it to be an important supplemental measure of the Company's performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures.
Adjusted EBITDA has limitations as an analytical tool, and readers should not consider this item in isolation, or as a substitute for an analysis of the Company's results as reported under IFRS. Some of the limitations of Adjusted EBITDA are:
- Adjusted EBITDA excludes certain income tax payments and recoveries that may represent a reduction or increase in cash available to the Company;
- Adjusted EBITDA does not reflect the Company's cash expenditures, or future requirements, for capital expenditures or contractual commitments;
- Adjusted EBITDA does not reflect changes in, or cash requirements for, the Company’s working capital needs;
- Adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest payments on the Company's debt;
- Depreciation and amortization are non-cash charges, thus the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
- Other companies in the industry may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure.
Because of these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to invest in the growth of the Company's business. The Company compensates for these limitations by relying primarily on the Company's IFRS results and using Adjusted EBITDA only on a supplementary basis. A reconciliation to profit, the most comparable GAAP financial measure, is provided below.
Adjusted EBIT is Adjusted EBITDA less depreciation and amortization. Black Diamond uses Adjusted EBIT primarily as a measure of operating performance. Management believes that Adjusted EBIT is a useful measure for investors when analyzing ongoing operating trends. There can be no assurances that additional special items will not occur in future periods, nor that the Company's definition of Adjusted EBIT is consistent with that of other companies. As such, management believes that it is appropriate to consider both profit determined on a GAAP basis as well as Adjusted EBIT. A reconciliation to profit, the most comparable GAAP financial measure, is provided below.
Adjusted EBITDA as a % of Revenue is calculated by dividing Adjusted EBITDA by total revenue for the period. Black Diamond uses Adjusted EBITDA as a % of Revenue primarily as a measure of operating performance. Management believes this ratio is an important supplemental measure of the Company's performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures.
Return on Assets is calculated as annualized Adjusted EBITDA divided by average net book value of property and equipment and intangible assets. Annualized Adjusted EBITDA is calculated by multiplying Adjusted EBITDA for the Quarter and Comparative Quarter by an annualized multiplier. Management believes that Return on Assets is a useful financial measure for investors in evaluating operating performance for the periods presented. When read in conjunction with the Company's profit and property and equipment, two GAAP financial measures, this non-GAAP ratio provides investors with a useful tool to evaluate Black Diamond's ongoing operations and management of assets from period-to-period.
Reconciliation of Consolidated Profit to Adjusted EBITDA, Adjusted EBIT, Adjusted EBITDA as a % of Revenue and Return on Assets:
| Three months ended March 31, | |||
| ($ millions, except as noted) | 2026 | 2025 | Change % |
| Profit(1) | 2.7 | 5.8 | (53)% |
| Add: | |||
| Depreciation and amortization(1) | 17.6 | 12.4 | 42% |
| Finance costs(1) | 4.9 | 3.8 | 29% |
| Share-based compensation(1) | 1.9 | 1.2 | 58% |
| Non-controlling interests(1) | 1.3 | 0.4 | 225% |
| Current income taxes(1) | 1.3 | 0.4 | 225% |
| Deferred income taxes(1) | 0.4 | 0.9 | (56)% |
| Non-recurring costs | |||
| ERP implementation and related costs(2) | 1.6 | 1.6 | —% |
| Acquisition costs(1) | 0.3 | — | 100% |
| Adjusted EBITDA | 32.0 | 26.5 | 21% |
| Less: | |||
| Depreciation and amortization(1) | 17.6 | 12.4 | 42% |
| Adjusted EBIT | 14.4 | 14.1 | 2% |
| Total revenue(1) | 130.0 | 102.2 | 27% |
| Adjusted EBITDA as a % of Revenue | 24.6% | 25.9% | (130) bps |
| Annualized multiplier | 4 | 4 | |
| Annualized adjusted EBITDA | 128.0 | 106.0 | 21% |
| Average net book value of property and equipment | 840.6 | 609.6 | 38% |
| Return on Assets | 15.2% | 17.4% | (220) bps |
| (1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three months ended March 31, 2026 and 2025. | |||
| (2) This relates to the costs incurred for implementation of a new ERP system and are included in administrative expenses; the first phase of the implementation went live on May 1, 2024 and the second phase commenced on October 1, 2024. | |||
Reconciliation of Consolidated Profit to Adjusted EBITDA, Net Debt and Net Debt to TTM Adjusted Leverage EBITDA:
Net Debt to TTM Adjusted Leverage EBITDA is a non-GAAP ratio which is calculated as Net Debt divided by TTM Adjusted Leverage EBITDA. Net Debt, a non-GAAP financial measure, is calculated as long-term debt minus cash and cash equivalents. A reconciliation to long-term debt, the most comparable GAAP financial measure, is provided below. Net Debt and Net Debt to TTM Adjusted Leverage EBITDA removes cash and cash equivalents from the Company's debt balance. Black Diamond uses this ratio primarily as a measure of operating performance. Management believes this ratio is an important supplemental measure of the Company's performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures. Management believes including the additional information in this calculation helps provide information on the impact of trailing operations from business combinations on the Company's leverage position.
| ($ millions, except as noted) | 2026 | 2025 | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 | Change |
| Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | ||
| Profit(1) | 2.7 | 7.6 | 12.2 | 9.2 | 5.8 | 9.3 | 7.4 | 7.5 | |
| Add: | |||||||||
| Depreciation and amortization(1) | 17.6 | 15.8 | 12.4 | 12.0 | 12.4 | 14.6 | 12.6 | 11.1 | |
| Finance costs(1) | 4.9 | 4.0 | 3.2 | 3.6 | 3.8 | 3.8 | 4.3 | 3.4 | |
| Share-based compensation(1) | 1.9 | 2.1 | 2.3 | 1.9 | 1.2 | 1.3 | 1.2 | 1.6 | |
| Non-controlling interests(1) | 1.3 | 1.6 | 0.2 | 0.3 | 0.4 | 0.5 | 0.4 | 0.4 | |
| Current income taxes(1) | 1.3 | 1.4 | 0.4 | 0.5 | 0.4 | 0.9 | — | — | |
| Deferred income taxes(1) | 0.4 | 4.2 | 3.9 | 2.6 | 0.9 | 5.4 | 2.6 | 2.1 | |
| Non-recurring costs | |||||||||
| ERP implementation and related costs(2) | 1.6 | 1.4 | 1.7 | 1.8 | 1.6 | 1.4 | 0.3 | 1.8 | |
| Acquisition costs(1) | 0.3 | 1.2 | 1.5 | 0.1 | — | — | — | — | |
| Gain on disposal of assets(1) | — | (0.4) | (6.0) | (2.8) | — | — | — | — | |
| Adjusted EBITDA | 32.0 | 38.9 | 31.8 | 29.2 | 26.5 | 37.2 | 28.8 | 27.9 | |
| Acquisition pro-forma adjustments(3) | 6.4 | 7.3 | 15.5 | 11.8 | |||||
| Adjusted Leverage EBITDA | 32.0 | 45.3 | 39.1 | 44.7 | 38.3 | 37.2 | 28.8 | 27.9 | |
| TTM Adjusted Leverage EBITDA | 161.1 | 132.2 | 22% | ||||||
| Long-term debt(1) | 348.5 | 229.3 | 52% | ||||||
| Cash and cash equivalents(1) | 18.7 | 12.7 | 47% | ||||||
| Current portion of long-term debt(4) | 0.9 | 1.2 | (25)% | ||||||
| Net Debt | 330.7 | 217.8 | 52% | ||||||
| Net Debt to TTM Adjusted Leverage EBITDA | 2.1 | 1.6 | 31% | ||||||
| (1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three months ended March 31, 2026 and 2025. | |||||||||
| (2) This relates to the costs incurred for the implementation of a new ERP system and are included in administrative expenses; the first phase of the implementation went live on May 1, 2024 and the second phase commenced on October 1, 2024. | |||||||||
| (3) Includes pre-acquisition Adjusted EBITDA estimates as if the acquisition occurred on January 1, 2025. Pre-acquisition Adjusted EBITDA is not recognized measure under IFRS. The Company's method of calculating may differ from other entities and accordingly, may not be comparable to measures used by other entities. | |||||||||
| (4) Current portion of long-term debt relating to the payments due within one year on the bank term loans assumed as part of the acquisition in the fourth quarter of 2022. | |||||||||
Funds from Operations is calculated as the cash flow from operating activities, the most comparable GAAP financial measure, excluding the changes in non-cash working capital. Management believes that Funds from Operations is a useful measure as it provides an indication of the funds generated by the operations before working capital adjustments. Changes in long-term accounts receivable and non-cash working capital items have been excluded as such changes are financed using the operating line of Black Diamond's credit facilities. A reconciliation to cash flow from operating activities, the most comparable GAAP financial measure, is provided below.
Free Cashflow is calculated as Funds from Operations minus maintenance capital, net interest paid (including lease interest), payment of lease liabilities, net current income tax expense (recovery), distributions declared to non-controlling interests and dividends paid on Common Shares plus net current income taxes received (paid). Management believes that Free Cashflow is a useful measure as it provides an indication of the funds generated by the operations before working capital adjustments and other items noted above. Management believes this metric is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures. A reconciliation to cash flow from operating activities, the most comparable GAAP financial measure, is provided below.
Reconciliation of Cash Flow from Operating Activities to Funds from Operations and Free Cashflow:
| Three months ended March 31, | |||
| ($ millions, except as noted) | 2026 | 2025 | Change |
| Cash Flow from Operating Activities(1) | 21.5 | 35.9 | (40)% |
| Add (deduct): | |||
| Change in other long-term assets(1) | (0.9) | 0.6 | (250)% |
| Changes in non-cash operating working capital(1) | 9.6 | (10.0) | 196% |
| Funds from Operations | 30.2 | 26.5 | 14% |
| Add (deduct): | |||
| Maintenance capital | (2.7) | (1.7) | (59)% |
| Payment for lease liabilities(1) | (2.3) | (2.6) | 12% |
| Interest paid (including lease interest)(1) | (4.7) | (3.6) | (31)% |
| Net current income tax expense(1) | 1.3 | 0.4 | 225% |
| Dividends paid on Common Shares(1) | (3.1) | (2.1) | (48)% |
| Distributions paid to non-controlling interests(1) | (0.9) | — | (100)% |
| Free Cashflow | 17.8 | 16.9 | 5% |
| (1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three months ended March 31, 2026 and 2025. | |||
Gross Profit Margin is a non-GAAP financial measure which is calculated by dividing gross profit, a GAAP financial measure calculated as total revenue less direct costs, by total revenue for the period. Management believes this ratio is an important supplemental measure of the Company's performance and believes this ratio is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures.
Reconciliation of Gross Profit to Gross Profit Margin:
| Three months ended March 31, | |||
| ($ millions, except as noted) | 2026 | 2025 | Change |
| Total revenue(1) | 130.0 | 102.2 | 27% |
| Direct costs(1) | 76.0 | 57.9 | 31% |
| Gross profit(1) | 54.0 | 44.3 | 22% |
| Gross Profit Margin | 41.5% | 43.3% | (180) bps |
| (1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three months ended March 31, 2026 and 2025. | |||
Total Trade Value, previously referred to as Gross Bookings, has been renamed to ensure alignment with terminology commonly used across the industry. Total Trade Value is a non-GAAP financial measure and is calculated as the total revenue billed to the customer which includes all fees and charges. Net revenue, a GAAP financial measure, is Total Trade Value less costs paid to suppliers. Revenue from bookings at third-party lodges and hotels through LodgeLink is recognized on a net revenue basis. LodgeLink is an agent in the transaction as it is not responsible for providing the service to the customer and does not control the service provided by a supplier. Management believes this non-GAAP financial measure is an important supplemental measure of LodgeLink's performance and cash generation and believes this non-GAAP financial measure is frequently used by interested parties in the evaluation of companies in industries with similar forms of revenue generation.
Net Revenue Margin is calculated by dividing net revenue by Total Trade Value for the period. Management believes this ratio is an important supplemental measure of LodgeLink's performance and profitability and believes this ratio is frequently used by interested parties in the evaluation of companies in industries with similar forms of revenue generation where companies act as agents in transactions.
Reconciliation of Net Revenue to Total Trade Value and Net Revenue Margin:
| Three months ended March 31, | |||
| ($ millions, except as noted) | 2026 | 2025 | Change |
| Net revenue(1) | 3.7 | 2.7 | 37% |
| Costs paid to suppliers(1) | 29.0 | 18.8 | 54% |
| Total Trade Value(1) | 32.7 | 21.5 | 52% |
| Net Revenue Margin | 11.3% | 12.6% | (130) bps |
| (1) Includes intercompany transactions. | |||
VAPS as a % of Rental Revenue is a non-GAAP ratio which is calculated as VAPS revenue divided by rental revenue excluding VAPS revenue. A reconciliation to rental revenue, the most comparable GAAP financial measure, is provided below. Black Diamond uses this ratio as a measure of operating performance. Management believes this ratio is an important supplemental measure to appraise the growth of ancillary products and services in proportion to the growth of rental revenue.
Reconciliation of Rental Revenue to VAPS as a % of Rental Revenue:
| Three months ended March 31, | |||
| Value Added Products & Services ($ millions, except as noted) | 2026 | 2025 | Change |
| Rental revenue(1) | 26.8 | 25.5 | 5% |
| Less: | |||
| VAPS revenue within rental revenue | 1.8 | 1.4 | 29% |
| Rental revenue excluding VAPS revenue | 25.0 | 24.1 | 4% |
| VAPS revenue | 2.7 | 2.0 | 35% |
| VAPS as a % of Rental Revenue | 10.8% | 8.3% | 250 bps |
| (1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three months ended March 31, 2026 and 2025. | |||
