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 rose 1% to CAD 3.1 million, while gross margin declined to 36.6% from 44% due to a shift in product and client mix.

• The company is transitioning to an AI-driven business model, launching Proposaly and AI Studio, both receiving strong early feedback.

Financial highlights

• Revenue: CAD 8.5 million in Q1 2026, up 22% year-over-year; 27% growth in USD terms.

• Gross profit: CAD 3.1 million, up 1% year-over-year; gross margin at 36.6% versus 44% last year.

• Net loss: CAD 0.8 million in Q1 2026, up from CAD 0.2 million last year; basic and diluted loss per share was CAD 0.012.

• Adjusted EBITDA was negative CAD 265,000, compared to positive CAD 208,000 in Q1 2025.

• Cash and cash equivalents stood at CAD 5.1 million, down from CAD 10.3 million at year-end, reflecting seasonal cash flow patterns.

Outlook and guidance

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

• EBITDA is projected to be positive for the full year 2026, with Q1 reflecting seasonal expense timing.

• North America is expected to return to positive growth as new initiatives and partnerships take effect.

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