Renoworks Announces First Quarter 2026 Financial Results

Renoworks Announces First Quarter 2026 Financial Results

Recurring Revenue Increases 36% Year-Over-Year as Renoworks Expands AI Functionality Across Enterprise and Contractor Solutions

CALGARY, AB, May 27, 2026 /CNW/ - Renoworks Software Inc. (TSXV: RW) ("Renoworks" or the "Company), an industry leader in visualization and lead generation technology for the home renovation and new construction sector, announces its first quarter 2026. The financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR+ at www.sedarplus.ca. Unless otherwise stated, all dollar amounts are Canadian dollars.

Financial highlights for the first quarter of fiscal 2026 with comparatives for 2025 are as follows:

• Revenues of $1,836,884, a 1% decrease from the prior period's $1,847,981. The decrease in reported revenue was due to an expected decline in design services offset by a 36% increase in higher margin recurring licensing revenue, reflecting previously highlighted recurring revenue growth focus
  
  
• Recurring revenue of $1,193,692 versus 879,726 for the same period in 2025, a 36% increase.
  
  
• Deferred Revenue of $2,141,893 at March 31, 2026 compared to $2,436,650 at December 31, 2025.
  
  
• Gross margin of 80% versus 75% in the same period in 2025, as a higher percentage of revenue is from licensing.
  
  
• Net loss of $48,756 compared to a net profit of $67,092 for the same period in 2025.
  
  
• Cash at March 31, 2026 was $1,102,656, a decrease of $342,072 from $1,444,728 at the end of fiscal 2025. 
  
  
• The Company's working capital at March 31, 2026 was a positive $529,776 compared to a positive working capital of $459,164 at December 31, 2025 an increase of $70,611. Excluding deferred revenue, a significant non-cash item included in working capital, the Company's working capital at March 31, 2026 is positive $2,191,876 ($2,381,953 – Dec 31, 2025).
  
  
• As at March 31, 2026, the Company had 40,901,301 common shares issued and outstanding.

In the first quarter of 2026 the Company earned aggregate revenues of $1,836,884, including $190,923 from design services, $1,193,692 from licensing and hosting, $148,150 from libraries, and $304,119 from implementation fees.

Net loss for the fiscal quarter ended March 31, 2026, was $48,756, a decrease compared to the net income of $67,092 reported for the same period in 2025. The decrease was primarily driven by increased overall expenses incurred in support of our continued product marketing and investment in research and development.

"Renoworks continues to execute on its transition toward a higher-margin, recurring revenue software business powered by AI-driven visualization, data analytics, predictive lead scoring, automated design assistance, image enhancement technology, and workflow automation," said Doug Vickerson, Chief Executive Officer of Renoworks. "During the quarter, recurring revenue increased 36% year-over-year, reflecting continued enterprise adoption of our platform and growing demand for scalable digital engagement solutions across the remodeling industry."

"We believe artificial intelligence is significantly expanding the opportunity for Renoworks and our customers. Homeowners are increasingly using AI tools to explore remodel ideas online. Manufacturers, contractors, and retailers require trusted platforms that connect those design experiences directly to real-world products, pricing, lead generation, and fulfillment. Renoworks is uniquely positioned at the intersection of AI visualization, product data, and conversion-driven homeowner engagement."

"Our strategy is centered on embedding AI functionality directly into the Renoworks platform to improve homeowner conversion, simplify product selection, accelerate project estimation, and generate higher-quality leads for our customers. We continue to invest aggressively in AI applications, data science, predictive analytics, and contractor workflow solutions that strengthen the value of our ecosystem and increase long-term recurring revenue potential."

"As we move further into 2026, we expect continued momentum in ARR growth, deeper enterprise adoption of our AI-enabled platform, and expanding opportunities to integrate Renoworks technology into emerging AI-driven consumer experiences. We believe the increasing adoption of AI across the home remodeling industry creates a significant opportunity for the Company to strengthen customer engagement, improve conversion rates, and expand recurring software revenues through next-generation digital experiences.

Financial results from operations for the first quarter of 2026 with comparatives for 2025 are as follows:

The Company's financial position as of March 31, 2026 and December 31, 2025 is as follows:

About Renoworks

Renoworks Software Inc. develops and sells unique digital visualization software and integration solutions for the remodeling and new home construction industry. Renoworks delivers its technology to manufacturers, contractors, builders, and retailers, offering solutions to one of the home improvement industry's greatest challenges: enabling homeowners to review product selections in a hyper-realistic, virtual environment before committing to purchases and construction. Renoworks markets its technologies as an innovative engagement, sales, and marketing platform and generates revenues from five main business lines: Renoworks Enterprise, Renoworks PRO, Renoworks Design Services, Renoworks FastTrack, and Renoworks API.

For more information, visit www.renoworks.com and www.renoworkspro.com. 

*Non-IFRS Measures

Adjusted EBITDA is a measure not recognized under IFRS. However, management of Renoworks believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons.

Adjusted EBITDA does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Renoworks' Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Renoworks posted on SEDAR+ (www.sedarplus.ca).

Forward Looking Information

Certain statements in this news release, other than statements of historical fact, are forward looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the Company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE RenoWorks Software Inc.