Adcore (ADCO) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue grew 8% year-over-year to CAD $12.1M, with strong momentum entering 2026 as an AI-first company and expanded partnerships.

• APAC region led growth with a 37% year-over-year increase in Q4 and 34% for the full year, now representing 62% of Q4 revenue.

• Company transitioned to an AI-first model, accelerating software development, operational efficiency, and launching new AI-powered solutions.

• Strategic partnerships expanded, including new agreements with TikTok, Google, Microsoft, Meta, and Criteo, covering most of the digital marketing landscape.

• Positive adjusted EBITDA sustained for six consecutive quarters since Q3 2024.

Financial highlights

• Q4 2025 revenue reached CAD $12.1M, up 8% YoY; full-year 2025 revenue was CAD $33.3M, up 3% YoY.

• Q4 gross profit was CAD $3.8M, slightly down from CAD $3.9M in Q4 2024; gross margin for Q4 was approximately 31%.

• Q4 operating cash flow was CAD $4.17M, up 9% YoY, marking the second strongest quarter in company history.

• Adjusted EBITDA for Q4 2025 was CAD $507K, down from CAD $1.28M in Q4 2024.

• Net loss for Q4 2025 was CAD $0.3M, compared to net profit of CAD $0.5M in Q4 2024; basic and diluted loss per share for Q4 was -0.005.

Outlook and guidance

• 2026 is positioned as a breakthrough year, with acceleration expected across all departments due to AI integration and new product launches.

• APAC and Australia expected to continue leading growth, with new services expanding to other regions and over 40% of January 2026 revenue in Australia from new solutions.

• North America anticipated to stabilize and return to growth in the second half of 2026.

• Management anticipates meaningful cost efficiencies and operating leverage from AI transformation throughout 2026.

• No formal quarterly guidance provided, but management signals strong momentum and innovation pipeline.