DATA Communications Management Corp. (“DCM” or “the Company”) is a Canadian-based provider of marketing and business communication solutions to companies in North America. Its technology-enabled content and workflow management capabilities solve the complex branding, communications, logistics, and regulatory requirements of leading enterprises so its customers can accomplish more in less time. Its services include printing, content management, digital asset management (DAM), labels & asset tracking, location-specific marketing, social media analytics, and multimedia campaign management. (1.0) QUARTERLY HIGHLIGHTS: (1.1) Revenue Decline Mitigated; In-line with Our Estimate: Revenue was $117.4M in Q1/2026, down 5% from Q1/2025 and in-line with our estimate of $117.5M. The decline reflects reduced order activity from large enterprise clients in financials & retail, offset by stronger activity in transportation & lottery. (1.2) Gross Margin Compression: Gross Profit was $33.2M, down 8.6% Y/Y. Gross Margin of 28.2% decreased 1.1 percentage points from Q1/2025, driven by lower revenues across a largely fixed cost base, partially offset by lower paper costs. Gross Margin came in above our estimate of 27.0%. (1.3) SG&A Discipline Continues to Deliver: SG&A expenses fell to $19.8M, down 15.4% Y/Y, reflecting headcount reductions from prior year restructuring initiatives. SG&A as a percentage of revenue improved to 16.9%, matching the recent low set in Q4/2024. (1.4) Record Adj. EBITDA on Lower Revenue: Adj. EBITDA was a record $19.1M (16.3% margin), up 2.7% Y/Y, driven by disciplined SG&A management. (1.5) New Business Momentum and Technology Growth: Over 40 new company logos were added in the quarter representing $4.0M in expected annualized revenue. Combined technology revenues grew 20.4% to $10.0M, representing 8.5% of total revenues. (1.6) Debt Reduction and Capital Returns on Track: Company-defined Net Debt was $66.4M, down 27.0% Y/Y. Free cash flow swung to positive $10.7M from negative $7.4M in Q1/2025. DCM repurchased 157,500 shares and declared a quarterly dividend of $0.025 per share. (2.0) FINANCIAL ANALYSIS & VALUATION: (2.1) We estimate an equal-weighted price target of $3.90 based on a DCF valuation ($3.60/share), a Revenue Multiple valuation ($4.53/share), and an EBITDA Multiple valuation ($3.60/share). (2.2) We are maintaining our Buy rating but lowering our one-year price target to $3.90 from $4.00.