Adcore (ADCO) investor relations material

Executive summary

• Q1 2026 revenue increased 22% year-over-year to CAD 8.5 million, with APAC leading at 42% growth and North America showing early signs of stabilization.

• Gross profit was stable at CAD 3.1 million, but gross margin declined to 36.6% from 44% due to client and product mix changes.

• Net loss widened to CAD 0.8 million from CAD 0.2 million year-over-year, and adjusted EBITDA turned negative at CAD -265,000.

• Significant AI-driven product innovation highlighted, including the launch of agentic Proposaly and AI Studio apps, with strong early feedback.

Financial highlights

• Revenue: CAD 8.5 million, up 22% year-over-year (27% in USD terms).

• Gross profit: CAD 3.1 million, stable year-over-year; gross margin fell to 36.6% from 44%.

• Net loss: CAD 0.8 million, up from CAD 0.2 million; basic and diluted loss per share: $(0.012) vs. $(0.003).

• Adjusted EBITDA: negative CAD 265,000, down from positive CAD 208,000.

• Cash and equivalents: CAD 5.1 million, down from CAD 10.3 million at year-end due to seasonality.

Outlook and guidance

• Management expects gross margins to improve and stabilize as the year progresses.

• EBITDA is expected to turn positive for the full year 2026, with Q1 impacted by seasonal expenses.

• North America is expected to return to positive growth as 2026 unfolds, with increased focus and initiatives.

• Seasonal working capital and cash outflows are expected to reverse over the remainder of the year.