Advantex Announces Fiscal 2025 Financial Results

Advantex Announces Fiscal 2025 Financial Results

TORONTO, Oct. 28, 2025 /CNW/ - Advantex Marketing International Inc. (CSE: ADX) ("Advantex" or the "Company") today announced its financial results for the fiscal year ended June 30, 2025. All results are reported under International Financial Reporting Standards ("IFRS") and in Canadian dollars, unless otherwise specified.

Key Financial Highlights:

• Total Revenue for Fiscal 2025 was $4.24 million, an increase of 33% from $3.18 million in Fiscal 2024. Growth was primarily driven by continued strength in the Merchant Cash Advance (MCA) program and significant expansion in the Aeroplan loyalty marketing program.
• Gross Profit increased by 39% to $3.02 million, reflecting improved portfolio performance and a return to historical delinquency trends.
• Gross Margins rose to 93% for the MCA program (up from 82%) and to 45% for the Aeroplan program (up from 33%), driven by normalized credit performance and competitive pricing.
• EBITDA (earnings before interest, taxes, depreciation, and amortization) increased to $1.31 million, compared to $0.51 million in Fiscal 2024 — a 156% improvement.
• Net Loss narrowed by 3% to $2.63 million, compared to $2.70 million in Fiscal 2024.
• G&A Expenses increased modestly to $1.22 million, up from $1.11 million in the prior year, reflecting stable overhead while supporting higher revenue volumes.

Operational Highlights:

• The Company's MCA portfolio continued to expand, with transaction credits (working capital advances to merchants) increasing 54% to $7.87 million at June 30, 2025 (June 30, 2024 – $5.10 million). The increase was supported by new broker-driven origination activity in the second half of the fiscal year.
• The Aeroplan loyalty marketing program continued to perform strongly following the five-year renewal of the agreement in September 2023, which remains in place through August 2028. Aeroplan revenue more than doubled year-over-year, reflecting renewed merchant engagement and improved consumer spending activity.
• During the year, holders of the Company's 9% non-convertible debentures continued their support by agreeing to multiple deferrals of interest payments and covenant resets. The Company remained in compliance with the reset covenants at year-end.

Funding and Capital Structure:

• The Company maintained its financial stability through consistent support from its long-standing credit facility provider, which funds 90% of MCA transaction credits. The facility automatically renewed in July 2025 for an additional one-year term.
• Subsequent to year-end, in October 2025, the Company entered into a new Receivables Purchase Agreement with a new funding partner to originate and sell up to $20 million in MCA receivables. This agreement provides a scalable, non-dilutive platform for growth and diversification of the Company's funding base.

Outlook:

Advantex remains cautiously optimistic about Fiscal 2026 and beyond. With economic uncertainty from tariffs and resurgence of inflation, demand for MCA type products is expected to increase. The Company's MCA product offering is more competitive compared to the competition. Combined with the new funding partnership, this positions the Company to significantly expand its origination capacity while maintaining prudent credit standards.

"Fiscal 2025 demonstrated the resilience of our business model," said Kelly Ambrose, President and CEO of Advantex. "We have strengthened our core MCA portfolio, deepened our relationships with existing and new funding partners, and positioned Advantex to scale efficiently in the year ahead."

The Company's audited consolidated financial statements and management's discussion and analysis for Fiscal 2025 have been filed on SEDAR.

About Advantex:

Advantex is a leading provider of merchant cash advance services to small independent merchants across Canada. The Company also operates a partnership with Aeroplan, offering businesses the opportunity to provide Aeroplan points to their customers. Advantex is listed on the Canadian Securities Exchange under the symbol ADX.

Forward-Looking Information:

This news release contains certain "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information includes, but is not limited to, the Company's future financial performance, business strategy, future financing, and its ability to meet obligations and achieve operational goals. The forward-looking information is based on current expectations and assumptions made by management in light of its experience and perception of historical trends, current conditions, and expected future developments. Forward-looking information is subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those anticipated or implied by such forward-looking information. These risks include, but are not limited to, general economic conditions, interest rates, inflation, the ability to raise additional financing, and risks related to the Company's business and operations.

The Company undertakes no obligation to update forward-looking information, except as required by law. Readers are encouraged to consult the Company's public filings for a full discussion of risks and uncertainties related to forward-looking information.

SOURCE Advantex Marketing International Inc.