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), intelligent document processing (IDP), labels & asset tracking, location-specific marketing, social media analytics, and multimedia campaign management. (1.0) QUARTERLY HIGHLIGHTS: (1.1) Revenue Decline Moderates, Below Estimate: Revenue was $110.9 million in Q2/2026, down 2.5% from $113.8 million in Q2/2025, a slower rate of decline than 5.0% in Q1/2026, but below our estimate of $112.5 million. (1.2) Gross Margin Compression Continues: Gross Profit was $28.2 million, down 7.5% year-over-year. Gross Margin of 25.4% decreased 1.4 percentage points from 26.8% in Q2/2025 and came in below our estimate of 26.0%. (1.3) SG&A Discipline Holds Steady: SG&A expenses were $19.7 million, down 0.7% from $19.9 million in Q2/2025 and essentially unchanged from $19.8 million in Q1/2026, at 17.8% of revenue. (1.4) Adjusted EBITDA Retreats from Record Q1 High: Adj. EBITDA was $14.2 million (12.8% margin), down 14.1% from $16.6 million a year ago, primarily due to lower revenue and gross profit, but partially offset by lower SG&A expenses resulting from cost-control and operating-efficiency initiatives. (1.5) Net Loss in Quarter: The Company reported a net loss of $0.9 million, compared to net income of $3.7 million in Q2/2025, reflecting acquisition & restructuring costs and a $1.1 million net fair value loss on financial liabilities. (1.6) Octacom Acquisition Closes; Debt Reduction and Dividend Continue: DCM completed its $54.0 million acquisition of Octacom on July 8, 2026, funded through an amended $160 million credit facility. Company-defined Net Debt was $64.6 million, down 26.2% year-over-year, and the Board declared its seventh consecutive 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 ($4.13/share), a Revenue Multiple valuation ($3.78/share), and an EBITDA Multiple valuation ($3.70/share). (2.2) We are maintaining our Buy rating and our one-year price target of $3.90.