TORONTO, ON / ACCESS Newswire / July 9, 2026 / Talent acquisition firm The Caldwell Partners International Inc. TSX:CWL(OTCQX:CWLPF) today issued its financial results for the third quarter of fiscal 2026, ended May 31, 2026 and announced a 50% increase in its quarterly dividend. All references to quarters or years are for the fiscal periods unless otherwise noted and all currency amounts are in Canadian dollars.
Financial Highlights (in $000s except per share amounts)
Three Months Ended Nine Months Ended | 05.31.26 05.31.25 05.31.26 05.31.25 | Professional fees - Caldwell 26,343 25,010 77,039 63,589 | Professional fees - IQTalent1 2,269 2,727 7,692 8,290 | Consolidated professional fees 28,612 27,737 84,731 71,879 | Direct expense reimbursements 209 194 668 570 | Revenues 28,821 27,931 85,399 72,449 | Cost of sales 21,724 21,402 65,897 56,532 | Reimbursed direct expenses 209 194 668 570 | Gross profit 6,888 6,335 18,834 15,347 | Selling, general and administrative expenses2 4,412 4,375 14,731 14,017 | Other expense3 - 112 - 112 | Operating profit 2,476 1,848 4,103 1,218 | Finance expenses (income) (94 ) 725 125 (115 ) | Earnings before tax 2,570 1,123 3,978 1,333 | Income tax expense 991 282 1,794 238 | Net earnings after tax 1,579 841 2,184 1,095 | Basic earnings per share $ 0.054 $ 0.028 $ 0.074 $ 0.037 |
Professional fees of IQTalent are presented net of elimination of intercompany revenue.
Selling, general and administrative expenses include a benefit of $55 related to share-based compensation as a result of share price decrease in the current quarter, compared to a benefit of $315 in the same quarter last year. For the nine months ended May 31, 2026, selling, general and administrative expenses include an expense of $325 related to share-based compensation as a result of share price increase, compared to a benefit of $284 in the same period last year.
Other expense of $112 in fiscal 2025 primarily reflects separation costs of $275 related to management staff reductions at IQTalent and a net loss of $324 associated with the sublease of the Caldwell's Toronto office space. These expenses were partially offset by Caldwell's $487 benefit from the Employee Retention Tax Credit (ERTC), established by the U.S. government under the CARES Act.
"Our third quarter results reflect continued growth in consolidated revenue and improved profitability," said Chris Beck, chief executive officer. "Professional fees increased 3% year over year to $28.6 million, while operating profit increased 34% to $2.5 million and net earnings rose to $1.6 million. For the first nine months of fiscal 2026, professional fees increased 18% and operating profit more than tripled, reflecting the strength of our client relationships, the quality of our team and continued discipline in managing our cost structure."
"While overall business activity remains constructive and we continue to win new business, hiring demand moderated during the latter part of the quarter compared with the stronger market conditions experienced a year ago," Beck continued. "Geopolitical and economic uncertainty, particularly in certain international markets, has contributed to a more cautious hiring environment. Even so, search activity remains healthy, and we continue to see opportunities across sectors and geographies."
"We remain focused on execution with superior outcomes, supporting our clients through changing market conditions, recruiting high-performing partners who align with our culture, and continuing to build a platform that can deliver long-term value for clients and shareholders alike. The dividend increase reflects the Board's confidence in the strength of our business, balance sheet and long-term strategy."
The Board of Directors today also approved a 50% increase in the Company's quarterly dividend, declaring a dividend of $0.015 per Common Share (one and one-half cents per Common Share), payable to holders of Common Shares of record on July 20, 2026, to be paid on September 14, 2026.
About Caldwell Partners
Caldwell Partners is a technology-powered talent acquisition firm specializing in recruitment at all levels. Through two distinct brands - Caldwell and IQTalent - the firm leverages the latest innovations in AI to offer an integrated spectrum of services delivered by teams with deep knowledge in their respective areas. Services include candidate research and sourcing through to full recruitment at the professional, executive and board levels, as well as a suite of talent strategy and assessment tools that can help clients hire the right people, then manage and inspire them to achieve maximum business results.
Caldwell Partners' common shares are listed on The Toronto Stock Exchange TSX:CWL and trade on the OTCQX Market (OTCQX:CWLPF). Please visit our website at www.caldwell.com for further information.
Forward-Looking Statements
We are subject to many factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statement including, but not limited to our ability to attract and retain key personnel; exposure to departing partners taking our clients to another firm; the performance of the US, Canadian and international economies; technological advances that may significantly disrupt the labour market and weaken demand for human capital at a rapid rate; competition from other companies directly or indirectly engaged in talent acquisition; cybersecurity requirements, vulnerabilities, threats and attacks; damage to our brand reputation; foreign currency exchange rate fluctuations; our ability to align our cost structure to changes in our revenue; liability risk in the services we perform; potential legal liability from clients, employees and candidates for employment; reliance on software that we license from third parties; reliance on third-party contractors for talent acquisition support; the classification of third-party labour as contractors versus employee relationships; our ability to successfully recover from a disaster or other business continuity issues; adverse governmental and tax law rulings; successfully integrating or realizing the expected benefits from our acquisitions, adverse operating issues from acquired businesses; volatility of the market price and trading volume of our common shares, including its impact on our compensation plans; affiliation agreements that may fail to renew or affiliates that may be acquired; the impact on profitability from marketable securities valuation fluctuations; increasing dependence on third parties for the execution of critical functions; our ability to generate sufficient cash flow from operations to support our growth and fund any dividends; potential impairment of our acquired goodwill and intangible assets; our limited ability to access credit; risks related to deposit-taking institutions; and disruption as a result of actions of certain stockholders or potential acquirers of the Company.
For more information on the factors that could affect the outcome of forward-looking statements, refer to the "Risk Factors" section of our Annual Information Form and other public filings (copies of which may be obtained at www.sedar.com). These factors should be considered carefully, and the reader should not place undue reliance on forward-looking statements. Although any forward-looking statements are based on what management currently believes to be reasonable assumptions, we cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements. Management's assumptions may prove to be incorrect. Except as required by Canadian securities laws, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf; such statements speak only as of the date made. The forward-looking statements included herein are expressly qualified in their entirety by this cautionary language.
For further information, please contact:
Investors:
Shreya Lathia, Vice President and Chief Financial Officer
slathia@caldwell.com
+1 (416) 934-2241
Media:
Caroline Lomot, Vice President, Marketing & Communications
clomot@caldwell.com
+1 (516) 830-3535
THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION | (unaudited - in $000s Canadian) | As at May 31, As at August 31, | 2026 2025 | Assets | Current assets | Cash and cash equivalents 17,581 16,436 | Term deposits - 4,123 | Accounts receivable 17,361 18,637 | Income taxes receivable 124 159 | Unbilled revenue 12,136 9,248 | Finance lease receivable 440 323 | Prepaid expenses and other assets 3,317 3,568 | 50,959 52,494 | Non-current assets | Prepaid expenses and other assets 498 312 | Investments 1,522 1,601 | Advances 1,574 1,028 | Deferred income taxes 5,653 6,624 | Property and equipment, net 1,624 1,131 | Right-of-use assets, net 3,811 4,623 | Finance lease receivable 1,256 1,562 | Intangible assets, net 6 34 | Goodwill 11,395 11,357 | Total assets 78,298 80,766 | Liabilities | Current liabilities | Accounts payable 3,777 3,263 | Dividend payable 295 74 | Deferred revenue 1,218 3,846 | Compensation payable 29,551 30,771 | Lease liability 1,874 1,731 | 36,715 39,685 | Non-current liabilities | Compensation payable 961 671 | Lease liability 4,362 5,438 | 42,038 45,794 | Equity attributable to owners of the Company | Share capital 15,362 15,346 | Contributed surplus 15,686 15,770 | Treasury shares (16 ) (2 ) | Accumulated other comprehensive income 2,271 2,201 | Retained earnings 2,957 1,657 | Total equity 36,260 34,972 | Total liabilities and equity 78,298 80,766 |
THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF EARNINGS | (unaudited - in $000s Canadian, except per share amounts) | Three months ended Nine months ended | 31-May-26 31-May-25 31-May-26 31-May-25 | Revenues | Professional fees 28,612 27,737 84,731 71,879 | Direct expense reimbursements 209 194 668 570 | 28,821 27,931 85,399 72,449 | Cost of sales expenses | Cost of sales 21,724 21,402 65,897 56,532 | Reimbursed direct expenses 209 194 668 570 | 21,933 21,596 66,565 57,102 | Gross profit 6,888 6,335 18,834 15,347 | Selling, general and administrative 4,412 4,375 14,731 14,017 | Other expenses - 112 - 112 | 4,412 4,487 14,731 14,129 | Operating profit 2,476 1,848 4,103 1,218 | Finance expenses (income) | Interest expense on lease liability 101 97 317 297 | Investment income (78 ) (168 ) (283 ) (353 ) | Foreign exchange loss (income) (117 ) 796 91 -59 | Earnings before income tax 2,570 1,123 3,978 1,333 | Income tax expense 991 282 1,794 238 | Net earnings for the period attributable to owners of the Company 1,579 841 2,184 1,095 | Earnings per share | Basic and diluted $ 0.05 $ 0.03 $ 0.07 $ 0.04 |
CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS | (unaudited - in $000s Canadian) | Three months ended Nine months ended | 31-May-26 31-May-25 31-May-26 31-May-25 | Net earnings for the period 1,579 841 2,184 1,095 | Other comprehensive income (loss): | Items that may be reclassified subsequently to net earnings (loss) | Loss on marketable securities - (2 ) - (1 ) | Cumulative translation adjustment 224 (737 ) 70 417 | Comprehensive earnings for the period attributable to owners of the Company 1,803 102 2,254 1,511 |
THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY | (unaudited - in $000s Canadian) | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Deficit) Share Capital Contributed Surplus Treasury Shares Cumulative Translation Adjustment Loss on Marketable Securities Total Equity | Balance - August 31, 2024 (609 ) 15,392 15,541 - 1,806 (4 ) 32,126 | Net earnings for the nine months ended May 31, 2025 1,095 - - - - - 1,095 | Share-based payment expense - - 195 - - - 195 | Dividend payments declared (222 ) - - - - - (222 ) | Loss on marketable securities available for sale - - - - - (1 ) (1 ) | Shares cancelled - (20 ) (14 ) - - - (34 ) | Treasury shares - - - (2 ) - - (2 ) | Change in cumulative translation adjustment - - - - 417 - 417 | Balance - May 31, 2025 264 15,372 15,722 (2 ) 2,223 (5 ) 33,574 | Balance - August 31, 2025 1,657 15,346 15,770 (2 ) 2,206 (5 ) 34,972 | Net earnings for the nine months ended May 31, 2026 2,184 - - - - - 2,184 | Share-based payment expense - - 26 - - - 26 | Dividend payments declared (884 ) - - - - - (884 ) | Shares issued (cancelled) - 16 (110 ) 2 - - (92 ) | Treasury shares - - - (16 ) - - (16 ) | Change in cumulative translation adjustment - - - - 70 - 70 | Balance - May 31, 2026 2,957 15,362 15,686 (16 ) 2,276 (5 ) 36,260 |
THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW | (unaudited - in $000s Canadian) | Nine months ended | 31-May-26 31-May-25 | Cash flow provided by (used in) | Operating activities | Net earnings for the period 2,184 1,095 | Add (deduct) items not affecting cash | Depreciation of property and equipment 338 322 | Depreciation of right-of-use assets 824 1,016 | Amortization of intangible assets 28 42 | Amortization of advances 974 845 | Interest expense on lease liability 317 297 | Share-based payment expense 26 195 | Interest income related to finance lease receivable (24 ) - | Loss (gain) on unrealized foreign exchange on subsidiary loans 5 (44 ) | Losses related to equity-accounted associate 86 72 | Impairment of fixed assets - 560 | Net gain on recognition of finance lease receivable - (381 ) | Changes in working capital (3,091 ) (6,033 ) | Net cash from (used in) operating activities 1,667 (2,014 ) | Investing activities | Purchase of property and equipment (828 ) (223 ) | Payment of advances (1,942 ) (1,372 ) | Repayment of advances - 859 | Maturity of term deposits 4,123 - | Prepaid rent capitalization related to right-of-use assets - (21 ) | Net cash from (used in) investing activities 1,353 (757 ) | Financing activities | Payment of lease liability (1,264 ) (1,321 ) | Payment of dividends (663 ) (149 ) | Purchase of treasury shares (14 ) (36 ) | Issued and cancelled shares, net (94 ) - | Sublease payments received 213 - | Net cash used in financing activities (1,822 ) (1,506 ) | Effect of exchange rate changes on cash and cash equivalents (53 ) 87 | Net increase (decrease) in cash and cash equivalents 1,145 (4,190 ) | Cash and cash equivalents, beginning of period 16,436 19,634 | Cash and cash equivalents, end of period 17,581 15,444 |
SOURCE: Caldwell Partners International, Inc.
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