Security towers and a cross-border growth story

What is driving Zedcor Inc. (TSXV:ZDC) as it scales its mobile security tower Business across North America? As of 4 November 2026, the evidence points to rapid expansion in the United States: in its most recent quarterly report, for the three months to 30 June 2026, the Calgary-based company said US operations generated more than half of Revenue for the period and accounted for most of a fleet that had roughly doubled in a year. That growth has been funded partly by borrowing and new equity, and it has come with a return to net losses.

Zedcor designs, builds and rents MobileyeZ towers, self-contained surveillance units with cameras and remote monitoring, typically deployed on construction sites, industrial yards, retail properties and other locations where fixed security infrastructure is impractical. Revenue comes mainly from recurring rental and monitoring fees. The company says it has more than 1,000 customers and has completed the roll-out of a service it calls DirectToDispatch across its monitoring operations.

The shares trade on the TSX Venture Exchange under ZDC and over the counter in the United States as ZDCAF.

Second-quarter 2026: record revenue, net loss

Zedcor reported its second-quarter results on 12 August 2026. The release presents figures in dollars without restating the currency; as an Alberta-based issuer, its statements are understood to be in Canadian dollars. Revenue was a record $22.7 million, up 68% from $13.5 million a year earlier and 17% higher than the first quarter. Adjusted EBITDA, a non-IFRS measure, rose 77% to $8.8 million, and the adjusted EBITDA Margin improved to 39% from 36%.

Despite that, Zedcor recorded a net loss of $2.3 million, compared with Net Income of about $0.5 million in the second quarter of 2025, and a first-half net loss of $2.6 million. The company attributed the result to Investment in its US growth.

The quarter continued a run of record results. In the first quarter of 2026, Zedcor reported revenue of $19.4 million and adjusted EBITDA of $7.6 million, and in the third quarter of 2025 it posted revenue of $16.0 million and adjusted EBITDA of $5.7 million.

Fleet growth and the US push

By the end of June 2026, Zedcor's fleet exceeded 3,850 towers, against more than 1,880 a year earlier. More than 2,200 of these, about 58%, were in the United States, while the Canadian fleet was roughly 1,600. The company deployed more than 600 towers in the quarter and said its production capacity was 45 to 50 towers a week, which it described as sufficient to support its year-end 2026 fleet target, with upside.

US revenue was $12.2 million in the second quarter, 54% of the total and 180% higher than a year earlier. First-half US revenue of $21.9 million already exceeded the full-year 2025 US figure of $21.2 million. Zedcor operates in Texas, Arizona, Colorado, Nevada, Florida and California and announced new enterprise contracts on 29 June 2026. Management's stated priorities for the rest of 2026 are deploying towers into markets with latent demand, reducing monitoring costs and converting its US enterprise pipeline. It did not provide numerical guidance.

Funding, Debt and dividends

Growth has required substantial capital. In the first half of 2026, Zedcor generated $8.1 million of operating cash flow, spent $42.4 million in investing activities and received $34.7 million from financing. In February 2026, it announced a $27.5 million bought deal public offering, increased it to $30.5 million and closed it on 27 February.

At 30 June 2026, the company had drawn $48.2 million on a $75 million revolving operating Loan priced at prime plus 1.00% and maturing in October 2028, plus $1.5 million of equipment financing. Net debt was $46.6 million, up from $12.2 million a year earlier, and $26.8 million remained undrawn. Zedcor said it was in compliance with its financial covenants. It also reported a working Capital Deficit of $4.5 million, compared with a $2.9 million surplus a year before.

Zedcor does not pay a dividend.

Valuation markers and corporate actions

The closing price was C$5.40 on 12 August 2026, with a Market Value of about C$609 million, roughly 110.9 million shares outstanding in mid-August and a 52-week range of C$4.04 to C$7.00.

Other 2026 corporate actions include the adoption of a Shareholder rights plan on 13 April, a first-half operations update and board appointment on 30 June, and a grant of 280,000 restricted share units to employees and a director on 24 August. A rights plan is generally intended to give a board more time to respond to an unsolicited bid; the company has not disclosed any such bid.

Industry drivers and risks

Demand for mobile surveillance is linked to construction activity, theft and vandalism trends, and the cost of on-site guards, which towers can partly replace. The larger US market also brings competition from established security providers.

Key risks include the pace of US customer conversion and utilisation of newly built towers, rising Leverage and interest costs, the Working Capital deficit, dependence on construction cycles, execution of monitoring cost reductions and potential further dilution if Equity is used to fund growth. Continued net losses despite higher EBITDA mean that profitability on a reported basis is not yet established.

What comes next

Investors are likely to focus on fleet size against the year-end target, US revenue share, utilisation, margin trends, net debt and covenant headroom, and whether the company can narrow its net loss as the fleet matures. Until then, the most recent data describe a fast-growing, capital-intensive business in the middle of a significant geographic expansion.