POSaBIT Systems (PBIT) investor relations material

Executive summary

• Achieved another consecutive profitable quarter on an adjusted EBITDA basis, with approximately $1M in Adjusted EBITDA for Q1 2026 and meaningful growth in cash reserves.

• Gross profit increased 29% year-over-year, reflecting strong operational execution and improved gross margin.

• Strategic focus on higher quality, recurring, and referral-based revenues led to improved gross profit and margin despite a decline in total revenue year-over-year.

• Successfully launched new products, including the Brand Portal and e-commerce solutions, and expanded into the New York market.

• Continued momentum in the cannabis industry regulatory environment, with potential for significant long-term opportunities.

Financial highlights

• Total revenue for Q1 2026 was $2.13 million, down 25% year-over-year, reflecting a shift away from legacy payment processing; Adjusted Revenue was $3.28 million after licensing adjustments.

• Gross profit reached $1.95 million, up 29% year-over-year, with gross margin expanding to 92% (reported) and 94.6% (adjusted).

• Adjusted EBITDA was approximately $1 million for the quarter.

• Operating loss improved to $206,000 from $1.13 million, and net loss improved to $291,000 from $1.12 million year-over-year.

• Cash on hand rose to $2.5 million, a 42% increase from year-end, with positive operating cash flow of $737,000.

Outlook and guidance

• Confident in maintaining profitability and positive EBITDA even after the expiration of a major licensing agreement in August 2026.

• Expectation to finish Q4 2026 with true positive EBITDA, independent of large licensing deal payouts.

• Continued focus on expanding SaaS, e-commerce, and Brand Portal offerings to offset any revenue gaps.

• Management remains optimistic about regulatory changes, especially cannabis rescheduling and potential for broader credit card processing.

• Focus on disciplined execution, long-term profitability, and strategic growth opportunities.