illumin (ILLM) Q4 2025 earnings summary

Executive summary

• 2025 marked a strategic repositioning towards an AI-enabled, outcomes-based advertising platform, moving beyond traditional DSP functionality to real-time decision-making for marketers.

• Exchange service revenue grew 48% year-over-year in Q4 to CAD 19.7 million, now a significant revenue contributor and 46% of total revenue; self-service revenue rose 23% sequentially, adding 41 net new clients.

• Full year 2025 revenue reached CAD 143.6 million, a 2.3% increase year-over-year, despite the roll-off of two large client engagements.

• Organizational restructuring and efficiency initiatives, including workforce reduction, were completed by year-end, keeping operating expenses flat year-over-year and aligning cost structure with revenue.

• Entering 2026 with an expanded sales pipeline, improved operating structure, and continued platform investments.

Financial highlights

• Q4 2025 revenue was CAD 43.1 million, down from CAD 49.9 million in Q4 2024, but up 12.8% sequentially from Q3 2025.

• Gross profit for Q4 2025 was CAD 15.6 million (gross margin 36.3%), down from CAD 22.7 million (45.4%) in Q4 2024, due to revenue mix shift and loss of high-margin clients.

• Adjusted EBITDA for Q4 2025 was a loss of CAD 0.9 million, compared to income of CAD 3.9 million in Q4 2024; full year Adjusted EBITDA was a loss of CAD 2.2 million versus income of CAD 6.3 million in 2024.

• Net loss for 2025 was CAD 14.7 million, compared to net income of CAD 0.9 million in 2024.

• Cash and cash equivalents at year-end were CAD 43.8 million, down from CAD 56.0 million at the end of 2024.

Outlook and guidance

• Focus for 2026 is on scaling high-growth segments (exchange and self-service), dedicated managed service support, continued product innovation towards generative self-service, and cost control.

• Management expects to restore gross margin above 40% as revenue mix stabilizes and platform investments yield returns.

• Expanded sales pipeline and improved customer retention among higher-spend clients are key priorities.

• Platform investments and restructuring actions are expected to drive sustained revenue growth and operational efficiency in 2026.

• Gross margins are expected to benefit from improved product mix and operational discipline.