Is Zedcor a buy right now?

Paradigm Capital analyst Alexandra Ricci says Zedcor’s (Zedcor Stock Qupte, Chart, News, Analysts, Financials TSXV:ZDC) record Q2 results show continued execution as the company scales its U.S. business.

In an September 22 update, Ricci maintained her “Buy” rating and $7.60 target on Zedcor , a provider of security and surveillance services. Her target is based on 13 times her 2027 EBITDA estimate.

Zedcor reported Q2 2026 revenue of $22.7-million, up 68% year-over-year and ahead of Ricci’s $22.3-million estimate and consensus at $22.4-million.

Adjusted EBITDA was $8.8-million, up 77% year-over-year and above Ricci’s $8.1-million estimate and consensus at $8.4-million. Adjusted EBITDA margin improved 220 basis points to 38.6%.

The company surpassed 1,000 customers during the quarter. U.S. operations accounted for 54% of revenue, or $12.2-million, exceeding Canadian revenue for the first time.

Ricci said Zedcor continues to report strong utilization, with Canada and the United States both above 90%.

Zedcor exited Q2 with 3,861 mobile security towers and sensors, up 600 from the prior quarter. Of that total, 2,200 towers, or 57%, were in the United States.

Ricci said the company has room to scale, with production capacity of 45 to 50 towers per week and the ability to increase output to about 300 towers per month if needed.

She expects growth to accelerate as Zedcor expands in the United States while maintaining strength in Canada, where revenue rose 15% year-over-year.

The expansion is fully funded, with Zedcor exiting Q2 with about $29.8-million of total liquidity.

Ricci said enterprise customer wins should support longer-term growth and revenue visibility, though larger contracts can take longer to ramp.

“Expansion in the U.S. and with large customers is still in the early innings; therefore, management is being strategic in building inventory that can be deployed quickly,” Ricci said.

The analyst expects Zedcor to generate Adjusted EBITDA of $37.0-million on revenue of $99.3-million in fiscal 2026, improving to Adjusted EBITDA of $69.0-million on revenue of $168.4-million in fiscal 2027.

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