Dye & Durham (TSE:DND)
TSX:DND
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Dye & Durham
(TSX:DND)
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Rating:48Neutral
Price Target:
C$4.00
â–²(0.76% Upside)
Action:ReiteratedDate:03/06/26
The score is held back primarily by weak financial performance—declining revenue, ongoing net losses, and especially very high leverage—despite positive (but weakening) free cash flow. Technicals are supportive due to strong recent price momentum, though overbought signals temper that benefit. Valuation is constrained by negative earnings, while the earnings call adds some offsetting positives from cost-savings and deleveraging actions, but near-term operating declines remain a key risk.
Positive Factors
Stable recurring revenue (Banking Technology)
The Banking Technology business ($53.8M revenue) is described as infrastructure-like recurring cash flow, providing durable, less-cyclical revenue diversification versus transaction-heavy legal services. This stabilizes cash generation and underpins predictable revenue and margins over the medium term.
Negative Factors
Very high leverage
Debt-to-equity near ~7.35x and negative TTM ROE (~-38.6%) leave limited financial flexibility. High leverage increases refinancing and interest-rate sensitivity, constrains capital allocation for product investment, and elevates the risk that cyclical downturns or execution delays impair solvency over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable recurring revenue (Banking Technology)
The Banking Technology business ($53.8M revenue) is described as infrastructure-like recurring cash flow, providing durable, less-cyclical revenue diversification versus transaction-heavy legal services. This stabilizes cash generation and underpins predictable revenue and margins over the medium term.
Read all positive factors
Dye & Durham (DND) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$272.16M
Dividend Yield1.8%
Average Volume (3M)426.66K
Price to Earnings (P/E)―
Beta (1Y)0.51
Revenue Growth2.47%
EPS Growth19.37%
CountryCA
Employees1,200
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.32
Shares Outstanding67,200,000
10 Day Avg. Volume559,953
30 Day Avg. Volume426,663
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)2.53
Price to Sales (P/S)1.46
P/FCF Ratio20.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$4.50Price Target Upside13.35% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)-1.29
Revenue Forecast (FY)C$422.97M
Dye & Durham Business Overview & Revenue Model
Company Description
Dye & Durham Limited, through its subsidiary, Dye & Durham Corporation, provides cloud-based software and technology solutions for legal firms, financial service institutions, and government organizations in Canada, Australia, Ireland, and the Uni...
How the Company Makes Money
Dye & Durham makes money primarily by selling software and technology-enabled services that support legal and transactional workflows. Key revenue streams include: (1) Subscription/SaaS fees: recurring revenue from licensing access to its cloud-ba...
Dye & Durham Earnings Call Summary
Earnings Call Date:Feb 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Negative
The call outlined clear strategic actions and tangible near-term positives (operating cash flow improvement, Credas sale and debt reduction, identified $15–$20M of cost savings, and early product modernization proof points). However, material near-term financial deterioration in the core legal software business (7% revenue decline, 24% adjusted EBITDA decline) across key geographies, accounting/regulatory issues and high housing-market exposure create significant headwinds. Management has a multi-year transformation plan but the magnitude of current declines and operational remediation required makes the near-term outlook challenging.Positive Updates
Operating cash flow improvement
Net cash provided by operating activities of $73.8M for the six months ended Dec 31, 2025, up from $62.3M in the prior year period — an increase of ~$11.5M (~18.5%), driven by lower cash taxes, lower net interest paid and favorable working capital movements.
Negative Updates
Revenue decline (core)
Total revenue for the first half of fiscal 2026 was $215.3M, down $16.8M or 7% year-over-year, primarily driven by market softness and customer turnover in legal software platforms.
Read all updates
Q2-2026 Updates
Positive
Negative
Operating cash flow improvement
Net cash provided by operating activities of $73.8M for the six months ended Dec 31, 2025, up from $62.3M in the prior year period — an increase of ~$11.5M (~18.5%), driven by lower cash taxes, lower net interest paid and favorable working capital movements.
Read all positive updates
Company Guidance
Management outlined a multi‑year transformation to simplify ~40 products into one global platform and to deleverage the business, targeting $15–20M of annualized EBITDA savings (≈60% of which they aim to action by the end of this fiscal year), with roughly 40% of savings from consolidating global delivery/service teams and 60% from automation/process standardization; they reported H1 FY2026 revenue of $215.3M (down $16.8M or 7% YoY), adjusted EBITDA $100.8M (down 24% YoY), revenue mix of Legal Software $161.5M and Banking Technology $53.8M, regional results: Canada −10% revenue (segment adj. EBITDA −25%), U.K./Ireland −6% (adj. EBITDA −26%), Australia +2% (adj. EBITDA −14%), operating cash flow $73.8M (vs. $62.3M prior year), cash on hand $37.8M (ex‑cash held for sale), $185M in escrow for convertible debentures, H1 capex $9M, Credas sale gross proceeds ~$146.3M (with $30M repaid on the revolver reducing utilization <35% and US$27.3M repaid on Term Loan B), an excess‑proceeds offer running Feb 9–Mar 9, and remaining contingent/holdback obligations disclosed at roughly $38M.Dye & Durham Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
22
Negative
Cash Flow
49
Neutral
| Breakdown | Dec 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 440.73M | 457.70M | 451.11M | 474.81M | 208.94M |
| Gross Profit | 144.88M | 312.90M | 304.78M | 417.25M | 181.02M |
| EBITDA | 172.34M | 104.83M | 79.05M | 232.35M | 34.94M |
| Net Income | -88.05M | -174.98M | -170.64M | 7.67M | -40.85M |
Balance Sheet | |||||
| Total Assets | 2.15B | 2.24B | 2.12B | 2.25B | 1.56B |
| Cash, Cash Equivalents and Short-Term Investments | 228.10M | 80.32M | 36.27M | 223.62M | 429.33M |
| Total Debt | 1.62B | 1.55B | 1.35B | 1.17B | 599.94M |
| Total Liabilities | 1.90B | 1.85B | 1.70B | 1.49B | 807.45M |
| Stockholders Equity | 254.81M | 389.34M | 423.08M | 763.42M | 750.92M |
Cash Flow | |||||
| Free Cash Flow | 30.68M | 141.92M | 108.30M | 161.63M | 69.83M |
| Operating Cash Flow | 34.86M | 180.87M | 141.40M | 185.44M | 79.35M |
| Investing Cash Flow | -270.69M | -40.28M | -158.27M | -923.58M | -790.67M |
| Financing Cash Flow | 14.23M | 90.16M | -164.87M | 535.30M | 1.14B |
Dye & Durham Technical Analysis
Negative
3.97
Price Trends
4.14
Negative
3.94
Positive
6.21
Negative
Market Momentum
-0.09
Positive
45.44
Neutral
75.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DND, the sentiment is Negative. The current price of 3.97 is below the 20-day moving average (MA) of 4.14, below the 50-day MA of 4.14, and below the 200-day MA of 6.21, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 45.44 is Neutral, neither overbought nor oversold. The STOCH value of 75.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DND.
Dye & Durham Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$3.12B | 37.14 | 7.27% | ― | -9.05% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | C$171.73M | -28.58 | -2.82% | ― | -4.34% | 31.52% | |
59 Neutral | C$7.63B | 160.67 | 5.08% | ― | 25.22% | -97.97% | |
53 Neutral | C$393.84M | -16.02 | -28.39% | ― | 12.20% | -8.46% | |
48 Neutral | C$272.16M | -3.21 | -43.96% | 1.80% | 2.47% | 19.37% | |
43 Neutral | C$43.07M | -10.77 | 247.94% | ― | ― | ― |
* Technology Sector Average
TSE:DND
Dye & Durham
3.97
-4.45
-52.87%
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Dye & Durham Corporate Events
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Dye & Durham Sets June Vote on Shareholder Rights Plan
Neutral
Apr 10, 2026
Dye Durham has called a special meeting of shareholders for June 9, 2026, to seek approval of a shareholder rights plan that came into effect on April 8, 2026. The plan, designed to remain in place for three years if ratified, will otherwise term...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Dye & Durham’s Rights Plan Faces TSX Deferral Amid Ongoing Sales Process
Neutral
Apr 6, 2026
Dye Durham said the Toronto Stock Exchange has deferred its decision on accepting the company’s newly adopted shareholder rights plan, pending comfort that securities regulators will not intervene in any takeover bid and shareholder ratific...
Business Operations and StrategyProduct-Related Announcements
Dye & Durham Adds Treefort Identity Verification to Unity Platform for Canadian Legal Market
Positive
Apr 1, 2026
Dye Durham has enhanced its Unity Practice Management platform by integrating Treefort Identity Verification, giving Canadian legal professionals additional options to manage client identification within their existing real estate conveyancing wo...
Business Operations and StrategyShareholder Meetings
Dye & Durham Adopts New Rights Plan to Shield Ongoing Sales Process
Neutral
Apr 1, 2026
Dye Durham has adopted a new shareholder rights plan as its existing plan nears expiry, aiming to protect the integrity of its ongoing sales process for the whole company and its Canadian Financial Services division. The move is designed to give ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Dye & Durham Shareholders Back Board, Auditor and New Equity Plan at AGM
Positive
Mar 4, 2026
Dye Durham has reported the results of its annual general and special meeting, where shareholders elected seven directors to the board with strong majorities, reaffirming the company’s existing leadership structure. Investors also confirmed...
Business Operations and StrategyProduct-Related Announcements
Dye & Durham Wins Four-Year Ontario Registry Contract, Expands eCore Integration
Positive
Mar 2, 2026
Dye Durham has secured a four-year contract with the Government of Ontario to continue providing electronic Ontario Business Registry services as a licensed service provider until January 2030. The deal, awarded through a competitive process, ext...
Business Operations and StrategyDividendsFinancial Disclosures
Dye & Durham’s Profitability Slips but Cash Flow Strengthens in Q2 2026
Negative
Feb 16, 2026
Dye Durham reported second quarter fiscal 2026 revenue of $107.0 million and first-half revenue of $215.3 million, reflecting a year-over-year decline driven by market downturns, loss of customers, and less favorable contract renewals in its lega...
Financial DisclosuresRegulatory Filings and Compliance
Dye & Durham Sets February 17 Call to Review Q2 Fiscal 2026 Results
Neutral
Feb 12, 2026
Dye Durham Limited, a global provider of cloud-based legal practice management and transaction-support solutions, serves law firms, corporations, and public-sector clients with data and payments infrastructure across multiple international market...
Business Operations and StrategyProduct-Related Announcements
Dye & Durham Extends Unity Conveyancing Platform to British Columbia
Positive
Feb 9, 2026
Dye Durham has launched its flagship Unity conveyancing platform in British Columbia, extending what it describes as Canada’s most widely used real estate transaction solution to a key provincial market. Unity, already processing more than ...
Delistings and Listing ChangesFinancial DisclosuresRegulatory Filings and Compliance
Dye & Durham Trading Set to Resume as Regulator Lifts Cease Trade Order
Positive
Feb 7, 2026
Dye Durham has regained regulatory compliance after the Ontario Securities Commission revoked a failure-to-file cease trade order that stemmed from delayed financial disclosures for its 2025 fiscal year, clearing the way for its shares to resume ...
Financial DisclosuresRegulatory Filings and Compliance
Dye & Durham Updates Financial Disclosures with Revised MD&A and Annual Information Form
Neutral
Feb 5, 2026
Dye Durham has filed a revised management’s discussion and analysis for the fiscal year ended June 30, 2025, correcting several figures and descriptions related to cash flow, adjusted EBITDA, earnings per share and certain financial termino...
Business Operations and StrategyDelistings and Listing ChangesFinancial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Dye & Durham Restores Financial Filings, Targets TSX Trading Resumption After Cease Trade Order
Positive
Feb 2, 2026
Dye Durham has filed its audited financial statements for fiscal 2025 and unaudited results for the first quarter of fiscal 2026, reporting full-year revenue of $440.7 million with a net loss of $88.0 million and Adjusted EBITDA of $232.8 million...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Dye & Durham Adds Turnaround Specialist Allen Taylor to Expanded Board
Positive
Jan 27, 2026
Dye Durham has expanded its board of directors to eight members and appointed Allen Taylor, currently president of consulting and advisory firm GTD Partners and a veteran of Brookfield Asset Management, as a new director. Taylor, who previously s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.