EMERGE Commerce (ECOM) investor relations material

Executive summary

• Q1 2026 revenue rose 17.5% year-over-year to CAD 5.9 million, marking the eighth consecutive quarter of revenue growth.

• Adjusted EBITDA improved to CAD 122,000, the sixth straight quarter of positive results.

• Cash position increased to CAD 4.1 million from CAD 2.7 million a year ago.

• Strategic acquisition of Viral Loops, a profitable B2B referral platform, completed for CAD 2.3 million, expected to provide recurring, non-seasonal revenue and immediate accretion to earnings.

• Extension of senior credit facility maturity to October 2027, with outstanding balance reduced to CAD 5.85 million and reclassified as long-term liability.

Financial highlights

• Gross merchandise sales (GMS) grew 5% to CAD 8.4 million compared to Q1 2025.

• Gross profit increased 6% to CAD 2.1 million; gross margin was 34.9% (35.6% excluding a one-time inventory adjustment), down from 38.6% in Q1 2025.

• Net loss from continuing operations was CAD 0.12 million, compared to a loss of CAD 0.02 million in Q1 2025, with prior year including a CAD 0.4 million accrual reversal.

• Total assets increased to CAD 13.5 million from CAD 6.6 million year-over-year.

• Long-term liabilities rose to CAD 7.7 million from CAD 1.1 million year-over-year.

Outlook and guidance

• Q2 2026 expected to show continued momentum in revenue and Adjusted EBITDA, with peak season for golf and first full quarter of Viral Loops contribution.

• Viral Loops anticipated to help smooth seasonality, providing stable recurring revenue and EBITDA across quarters.

• Investments planned at HQ and portfolio level to support growth.

• Focus remains on profitable growth, margin improvement, cash flow generation, and evaluating accretive acquisitions.