Adcore (ADCO) investor relations material

Executive summary

• Q2 2026 delivered 10% year-over-year revenue growth to CAD 7.2 million and nearly 19% gross profit growth to CAD 3.7 million, with gross margin expanding to 51% from 47% a year ago.

• All regions showed growth: North America rebounded 27% to CAD 1.5 million, EMEA grew 12% to CAD 2 million, and APAC up 23% with continued strong performance.

• Five autonomous AI agents were launched, including the AI Studio agent, with a sixth focused on media buying scheduled for Q3, driving early revenue and strong market fit.

• AI Studio platform enhancements enable rapid, cost-effective creative production, reducing costs and time for clients.

• The company targets a leaner cost structure heading into Q4 2026, aiming for a 15%-20% reduction in SG&A/operating expenses.

Financial highlights

• Q2 2026 revenue: CAD 7.2 million, up 10% year-over-year; gross profit: CAD 3.7 million, up 19%; gross margin improved to 51% from 47% year-over-year.

• Net loss for Q2 2026 was CAD 0.8 million, compared to CAD 0.4 million in Q2 2025; basic and diluted loss per share were CAD $(0.013), compared to CAD $(0.010) in Q2 2025.

• Adjusted EBITDA for Q2 2026 was CAD 41,000, down from CAD 155,000 in Q2 2025.

• Cash and cash equivalents stood at CAD 4 million as of June 30, 2026.

• Working capital at June 30, 2026 was CAD 3.1 million, down from CAD 5.1 million at December 31, 2025.

Outlook and guidance

• Management expects continued gross margin strength, with some seasonal Q4 cost pressures and a focus on balancing innovation investment with profitability.

• North America is expected to maintain positive momentum into H2 2026.

• The company plans to enter Q4 2026 as a leaner organization, targeting a 15%-20% reduction in SG&A/operating expenses.

• Continued rollout of AI agents anticipated to drive further growth and margin improvement.

• Cash position and working capital expected to recover as seasonal cycles reverse in H2.