EQ Inc. Reports Strong Second Quarter Financial Results

Revenue growth of over 112% and profitable while becoming Canada 's leader in card-linked offers

TORONTO, ON / ACCESS Newswire / August 21, 2025 /EQ Inc. (TSXV:EQ) ( "EQ Works " or the "Company "), a leader in AI and data-driven software and solutions, announced its financial results for the second quarter ended June 30, 2025.

EQ is pleased to report exceptional revenue growth and positive adjusted EBITDA for the quarter. Highlights for the three months ended June 20, 2025 include:

• Revenue increased by over 112%, to $3.1 million, compared to the previous quarter and increased by approximately 19% compared to the previous year.

• Gross margin increased to 44%, an improvement from 40% in the previous quarter and 43% in the same period a year ago.

• Adjusted EBITDA improved by 109% quarter over quarter and by 127% when compared to the previous year.

• Integrated Rewards (Paymi) continued to expand its merchant network, becoming Canada 's largest provider of Card-Linked Offers with almost 100 cash back offers currently on the platform.

"This quarter marks an important milestone on our path to sustainable growth and profitability, " said Geoffrey Rotstein, President and CEO of EQ Works. "We are proud to be Canada 's largest provider of card-linked offers, a leadership position driven by the expansion of our proprietary first-party data network and the growing adoption of our reporting and insights dashboard. "

Revenue of $3.1 million for the quarter represents 112% sequential growth and 19% growth year over year, showing strong momentum across the business. Gross margin increased to 44%, compared to 40% last quarter, as our higher margin products continued to gain momentum. EQ reported adjusted EBITDA of $0.1 million, an improvement of over $0.7 million compared to Q1 2024, and by $0.2 million from the same period a year ago, resulting in our best performance in over a decade. These improvements reflect the Company 's disciplined focus on driving more recurring, higher margin revenue, and properly aligning costs and investments with its overall revenue composition.

As businesses across industries accelerate AI and data-driven investments, EQ 's proprietary data assets and innovative product suite position it for growth. By leveraging compliant, user opt-in, real-time data, EQ enables clients to execute smarter marketing campaigns and make more strategic data-informed decisions. These capabilities directly contributed to our strong performance this quarter and highlight the value of EQ 's solutions in an AI-driven business landscape.

In addition, the Company announced the granting of stock options to current and former members of the EQ 's board of directors.

The Company granted 300,000 stock options to its newest board members. These stock options are exercisable at CDN $0.99 per stock option and will expire on May 28, 2030. 150,000 of these stock options will vest immediately, and the remaining 150,000 options vest in over the twelve months following the grant date and are governed by the terms and conditions of the Company 's stock options plan.

The Company also granted 100,000 options to a former director. These stock options are exercisable at CDN $1.01 per stock option and will expire on April 16, 2026. All 100,000 stock options will vest immediately and are governed by the terms and conditions of the Company 's stock options plan.

Non-IFRS Financial Measures

EQ Works measures the success of the Company 's strategies and performance based on Adjusted EBITDA, which is outlined and reconciled with net loss in the section entitled "Reconciliation of Net Loss for the period to Adjusted EBITDA " in the MD&A. The Company defines Adjusted EBITDA as net loss from operations before: (a) depreciation of property and equipment and amortization of intangible assets, (b) share-based payments, (c) finance income and costs, net, (d) restructuring costs. Management uses Adjusted EBITDA as a measure of the Company 's operating performance because it provides information on the Company 's ability to provide operating cash flows for working capital requirements, capital expenditures, and potential acquisitions. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in its industry.

The non-IFRS financial measure is used in addition to, and in conjunction with, results presented in the Company 's consolidated financial statements prepared in accordance with IFRS and should not be relied upon to the exclusion of IFRS financial measures. Management strongly encourages investors to review the Company 's consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-IFRS financial measures are not standardized, it may not be possible to compare these financial measures with other companies non-IFRS financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-IFRS adjustments described above, and exclusion of these items from the Company 's non-IFRS measures should not be construed as an inference that these costs are unusual, infrequent, or non-recurring.

The table below reconciles net loss from operations and Adjusted EBITDA for the periods presented:

About EQ Works

EQ Works (www.eqworks.com) enables businesses to understand, predict, and influence customer behaviour. Using unique data sets, advanced analytics, machine learning and artificial intelligence, EQ Works creates actionable intelligence for businesses to attract, retain, and grow the customers that matter most. The Company 's proprietary SaaS platform mines insights from movement and geospatial data, enabling businesses to close the loop between digital and real-world consumer actions.

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Certain statements contained in this press release constitute "forward-looking statements ". All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company 's future financial position and results of operations, strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words "believe ", "expect ", "aim ", "intend ", "plan ", "continue ", "will ", "may ", "would ", "anticipate ", "estimate ", "forecast ", "predict ", "project ", "seek ", "should " or similar expressions, or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company 's expectations, estimates, and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks, and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied, or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance, or achievements to differ materially include, but are not limited to, the risk factors discussed in the Company 's MD&A for the three and six months ended June 30, 2024. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives but cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and any other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect subsequent information, events, or circumstances or otherwise, except as required by law.

EQ Inc.
Michael Kahn, Chief Financial Officer
press@eqworks.com

SOURCE: EQ Inc.

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