The DLC Group Announces Third Quarter 2026 Results with 14% Increase in Revenues and 59% Adjusted EBITDA Margins
Key Highlights
- ➤Q3 revenue $30.0 million, up 14% year over year
- ➤Adjusted EBITDA rose 26% to $17.8 million; margin expanded to 59%
- ➤Filogix acquisition completed July 31, contributing $3.9 million revenue
- ➤Free cash flow increased 51% to $14.3 million in Q3
- ➤Adjusted diluted EPS rose 18% to $0.13 year over year
Expert Statements
Gary Mauris, Co-Founder and CEO of the DLC Group
“We delivered strong third quarter results, increasing Adjusted EBITDA by 26% and expanding Adjusted EBITDA margins to 59%, despite a challenging Canadian housing market and significant macro uncertainty with global events. While broker recruiting and retention have always been core priorities for the DLC Group we have concluded that we can do more to train our mortgage professionals to help them build larger, more productive businesses. During the quarter, we announced a new network training and accountability program called Launch-Momentum-Scale or LMS. LMS is a 12-month program designed to support brokers at every stage of their career, from completing their first files to building large scalable businesses. LMS, alongside initiatives such as Gold Rush and Goal Getter, are expected to strengthen broker productivity, retention, and long-term growth.”
Gary Mauris, Co-Founder and CEO of the DLC Group
“During the quarter, we also successfully completed the acquisition of Filogix, one of Canada's leading mortgage connectivity platforms. With integration continuing, we are building on Filogix's strong customer relationships, market positioning, and operational expertise that have made it an industry leader. Filogix enhances our connectivity across the mortgage value chain, and provides an additional platform for long-term growth and value creation. Supported by our strong balance sheet, disciplined capital allocation strategy, and cash flow generation, we are well positioned to execute on our strategic priorities and deliver long-term value for shareholders”
Vancouver, British Columbia--(Newsfile Corp. - November 5, 2026) - Dominion Lending Centres Inc. (TSX: DLCG) (the "DLC Group" or the "Corporation") today announced financial results for the three ("Q3 2026") and nine months ended September 30, 2026. The DLC Group is one of Canada's leading franchisors of mortgage professionals, with a national network of over 8,800 agents. The Corporation also owns Velocity and Filogix, fintech mortgage connectivity products that provide integrated end-to-end operating platforms designed to automate and streamline the entire mortgage application, approval, underwriting and funding process.
Financial Highlights for Q3 2026: * Funded mortgage volumes of $23.3 billion in Q3 2026 decreased 1% compared to Q3 2025. * Revenue increased 14% year over year to $30.0 million, reflecting the contribution of $3.9 million of revenue from Filogix and continued growth in Newton (Velocity) revenue. * Adjusted EBITDA increased 26% to $17.8 million in Q3 2026 compared to $14.2 million in Q3 2025. Adjusted EBITDA margin expanded to 59%, compared to 54% in the prior-year period. Adjusted EBITDA includes a loss from the Corporation's equity-accounted investment in Heartwood of $0.1 million for Q3 2026 and $0.3 million for Q3 2025. * Net income of $8.8 million in Q3 2026, decreased slightly compared to $9.0 million in Q3 2025. Adjusted net income and adjusted diluted earnings per common share in Q3 2026 were $9.8 million and $0.13, respectively, compared to $9.0 million and $0.11 in Q3 2025. * The Corporation completed the acquisition of Filogix on July 31, 2026, strengthening its technology ecosystem and adding a leading Canadian mortgage connectivity platform. Filogix contributed $3.9 million of revenue and $1.8 million of Adjusted EBITDA during the quarter. * A quarterly dividend of $0.05 per share was paid on September 15, 2026, a 25% increase compared to prior year. "We delivered strong third quarter results, increasing Adjusted EBITDA by 26% and expanding Adjusted EBITDA margins to 59%, despite a challenging Canadian housing market and significant macro uncertainty with global events," said Gary Mauris, Co-Founder and CEO of the DLC Group. "While broker recruiting and retention have always been core priorities for the DLC Group we have concluded that we can do more to train our mortgage professionals to help them build larger, more productive businesses. During the quarter, we announced a new network training and accountability program called Launch-Momentum-Scale or LMS. LMS is a 12-month program designed to support brokers at every stage of their career, from completing their first files to building large scalable businesses. LMS, alongside initiatives such as Gold Rush and Goal Getter, are expected to strengthen broker productivity, retention, and long-term growth."
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