KP Tissue Releases Second Quarter 2025 Financial Results
Kruger Products Q2 2025 Business and Financial Highlights
Revenue was $536.1 million in Q2 2025 compared to $509.8 million in Q2 2024, an increase of $26.3 million or 5.2%.
Adjusted EBITDA1 was $72.5 million in Q2 2025 compared to $65.3 million in Q2 2024, an increase of 11.0%.
Net income was $22.1 million in Q2 2025 compared to $10.6 million in Q2 2024, an increase of $11.5 million.
Declared a quarterly dividend of $0.18 per share to be paid on October 15, 2025.
'We are pleased with our overall performance in the second quarter of 2025 with Adjusted EBITDA improving 11% year-over-year to $72.5 million,' stated KP Tissue's Chief Executive Officer, Dino Bianco. 'U.S. revenue growth slowed down in Q2 2025 due to front-loaded shipments made during the previous quarter to mitigate potential tariffs, along with softness in the AFH market. Nevertheless, U.S. sales have grown 12% after six months into 2025 and represent a key growth driver for Kruger Products.
'In early July, we announced an additional investment of approximately US$35 million at our Memphis manufacturing facility to deploy a state-of-the-art, multi-purpose converting line for bathroom tissue and paper towels. This initiative is part of a broader strategy to drive efficiency and support our growing U.S. business,' Mr. Bianco added.
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Outlook for Q3 2025
We expect a stronger performance in Q3 2025, with Adjusted EBITDA1 in the range of $75 million to $80 million.
Kruger Products Q2 2025 Financial Results
Revenue was $536.1 million in Q2 2025 compared to $509.8 million in Q2 2024, an increase of $26.3 million or 5.2%. The increase in revenue was primarily due to higher sales volume in the Consumer segment and favourable selling prices across both segments, partially offset by somewhat lower sales volume in the AFH segment. Revenue was also favourably impacted by foreign exchange fluctuations on U.S. dollar sales.
Cost of sales was $462.2 million in Q2 2025 compared to $431.2 million in Q2 2024, an increase of $31.0 million or 7.2%. The increase in cost of sales was primarily due to higher sales volume and pulp prices along with the unfavourable impact of foreign exchange fluctuations on U.S. dollar costs and unfavourable mill performance at our Memphis site, partially offset by lower manufacturing overhead costs due primarily to overhead cost absorption resulting from higher inventory levels in the quarter and costs related to the Q2 2024 labour disruption that did not recur in Q2 2025. Freight rates were higher compared to Q2 2024. As a percentage of revenue, cost of sales was 86.2% in Q2 2025 compared to 84.6% in Q2 2024.
Selling, general and administrative (SG&A) expenses were $47.2 million in Q2 2025 compared to $42.5 million in Q2 2024, an increase of $4.7 million or 11.1%. The increase was primarily due to additional investment in IT and foreign exchange losses on working capital compared to gains in Q2 2024, partially offset by lower operational and corporate initiatives compared to the year ago quarter. As a percentage of revenue, SG&A expenses were 8.8% in Q2 2025 compared to 8.3% in Q2 2024.
Adjusted EBITDA1 was $72.5 million in Q2 2025 compared to $65.3 million in Q2 2024, an increase of $7.2 million or 11.0%. The increase was primarily due to higher sales volumes and selling prices along with lower manufacturing overhead costs as a result of overhead cost absorption, partially offset by higher pulp prices and unfavourable mill performance at our Memphis site along with higher freight rates and SG&A expenses.
Net income was $22.1 million in Q2 2025 compared to $10.6 million in Q2 2024, an increase of $11.5 million. The increase was primarily due to a foreign exchange gain and higher Adjusted EBITDA1, partially offset by higher depreciation expense resulting from the Sherbrooke Expansion Project and a one-time expense related to reducing the useful life of certain older assets in our Memphis site and higher interest expense and other finance costs.
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Kruger Products Q2 2025 Liquidity
Total liquidity, representing cash and availability under the revolving credit agreements, was $293.1 million as of June 30, 2025.
KPT Q2 2025 Financial Results
KPT had net income of $2.6 million in Q2 2025. Included in net income was $2.8 million representing KPT's share of Kruger Products' net income, a dilution gain of $0.1 million and depreciation expense of $0.3 million related to adjustments to carrying amounts on acquisition.
Memphis Site Investment
During Q2 2025, Kruger Products completed the shutdown of the remaining LDC assets at its Memphis, TN site. Subsequent to the end of the quarter, on July 9, 2025, Kruger Products also announced that its subsidiary, K.T.G. (USA) Inc., will be investing approximately USD$35 million in a new converting line for bathroom tissue and paper towels at its site in Memphis, TN. These actions together will drive efficiency in our Memphis site by shutting down older assets, focusing on premium products supported by modern equipment and on-site warehousing.
Dividends on Common Shares
The Board of Directors of KPT declared a quarterly dividend of $0.18 per share to be paid on October 15, 2025 to shareholders of record at the close of business on September 30, 2025.
Additional Information
For additional information please refer to Management's Discussion and Analysis (MD&A) of KPT and Kruger Products for the second quarter ended June 30, 2025 available on SEDAR+ at www.sedarplus.ca or our website at www.kptissueinc.com.
Second Quarter Results Conference Call Information
KPT will hold its second quarter conference call on Wednesday, August 13, 2025 at 8:30 a.m. Eastern Time.
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Via telephone: 1-888-699-1199 or 416-945-7677
Via the internet at: www.kptissueinc.com
Presentation material referenced during the conference call will be available at www.kptissueinc.com.
A rebroadcast of the conference call will be available until midnight, August 20, 2025 by dialing 1-888-660-6345 or 289-819-1450 and entering passcode 53401.
The replay of the webcast will remain available on the website until midnight, August 20, 2025.
About KP Tissue Inc.
KPT was created to acquire, and its business is limited to holding, a limited equity interest in Kruger Products, which is accounted for as an investment on the equity basis. KPT currently holds a 12.2% interest in Kruger Products. For more information visit www.kptissueinc.com.
About Kruger Products Inc.
Kruger Products is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. Kruger Products serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan® and Bonterra®. In the U.S., Kruger Products manufactures the White Cloud® brand, as well as many private label products. The Away-From-Home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. Kruger Products has approximately 3,000 employees and operates ten FSC® COC-certified (FSC® C-104904) production facilities in North America. For more information visit www.krugerproducts.ca.
Non-GAAP Financial Measures
This press release uses certain non-GAAP financial measures which Kruger Products believes provide useful information to management of Kruger Products and the readers of the financial information in measuring the financial performance and financial condition of Kruger Products. These measures do not have a standardized meaning prescribed by GAAP and therefore may not be comparable to similarly titled measures presented by other companies. An example of such a measure is Adjusted EBITDA. Adjusted EBITDA is not a measurement of operating performance computed in accordance with GAAP and should not be considered as a substitute for operating income, net income or cash flows from operating activities computed in accordance with GAAP. 'Adjusted EBITDA' is calculated by Kruger Products as net income (loss) before (i) interest expense and other finance costs, (ii) income taxes, (iii) depreciation, (iv) amortization, (v) loss on sale of non-financial assets, (vi) loss (gain) on disposal of property, plant and equipment, (vii) foreign exchange loss (gain), (viii) costs related to restructuring activities and (ix) changes in amortized cost of Partnership units liability. A reconciliation of Adjusted EBITDA to the relevant reported results can be found in the Segment and Geographic Results table of this news release.
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Forward-Looking Statements
Certain statements in this press release about KPT's and Kruger Products' current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words 'may', 'will', 'would', 'should', 'could', 'expects', 'plans', 'intends', 'trends', 'indications', 'anticipates', 'believes', 'estimates', 'predicts', 'likely' or 'potential' or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. The forward-looking statements are based on certain key expectations and assumptions made by KPT or Kruger Products, including the moderation of inflationary pressure on input costs and continued inflationary pressure on SG&A as labour, marketing and IT costs continue to rise. Although KPT and Kruger Products believe that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking statements since no assurance can be given that such expectations and assumptions will prove to be correct.
The outlook provided in respect of Adjusted EBITDA1 for Q3 2025 is forward-looking information and is based on the assumptions and subject to the risk and uncertainties referred to below. The purpose of the outlook is to provide the reader with an indication of management's expectations, at the date of this press release, regarding Kruger Products' future financial performance. Readers are cautioned that this information may not be appropriate for other purposes.
Many factors could cause Kruger Products' actual results, level of activity, performance or achievements or future events or developments (which could in turn affect the economic benefits derived from KPT's economic interest in Kruger Products), to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, which are discussed in greater detail in the 'Risk Factors – Risks Related to Kruger Products' Business' section of the KPT Annual Information Form dated March 5, 2025 available on SEDAR+ at www.sedarplus.ca: Kruger Inc.'s influence over Kruger Products; Kruger Products' reliance on Kruger Inc.; consequences of an event of insolvency relating to Kruger Inc.; risks associated with the ownership of the TAD Sherbrooke Project; risks associated with the operation of the TAD Sherbrooke Project; risks associated with the Sherbrooke Expansion Project; operational risks; significant increases in input costs; reduction in supply of fibre; increased pricing pressure and intense competition; Kruger Products' inability to innovate effectively; adverse economic conditions; dependence on key retail trade customers; damage to the reputation of Kruger Products or Kruger Products' brands; Kruger Products' sales being less than anticipated; Kruger Products' failure to implement its business and operating strategies; Kruger Products' obligation to make regular capital expenditures; Kruger Products entering into unsuccessful acquisitions; Kruger Products' dependence on key personnel; Kruger Products' inability to retain its existing customers or obtain new customers; Kruger Products' loss of key suppliers; Kruger Products' failure to adequately protect its intellectual property rights; Kruger Products' reliance on third party intellectual property licenses; adverse litigation and other claims affecting Kruger Products; material expenditures due to comprehensive environmental regulation affecting Kruger Products' cash flow; Kruger Products' pension obligations are significant and can be materially higher than predicted if Kruger Products Management's underlying assumptions are incorrect; labour disputes adversely affecting Kruger Products' cost structure and Kruger Products' ability to run its plants; exchange rate and U.S. competitors; Kruger Products' inability to service all of its indebtedness; exposure to potential consumer product liability; covenant compliance; interest rate and refinancing risk; and risks relating to information technology; cyber-security; insurance; internal controls, trade and tax.
Readers should not place undue reliance on forward-looking statements made herein. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. The forward-looking information contained herein is made as of the date of press release and KPT undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.
INFORMATION:
Francois Paroyan
General Counsel and Corporate Secretary
KP Tissue Inc.
905-812-6936
francois.paroyan@krugerproducts.ca
INVESTORS:
Doris Grbic
Director, Investor Relations
KP Tissue Inc.
437-882-2596
IR@krugerproducts.ca
___________________
1 Adjusted EBITDA is a non-GAAP financial measure. Refer to the Non-GAAP Financial Measures section of this news release for more information on these measures
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VIQ Solutions Posts Fifth Straight Positive Adjusted EBITDA Quarter
Article content MISSISSAUGA, Ontario — VIQ Solutions Inc. ('VIQ' or 'the Company') (TSX: VQS), a global leader in AI-powered digital documentation, today announced financial results for the three and six months ended June 30, 2025. The Company reported continued margin expansion, its fifth consecutive quarter of positive Adjusted EBITDA, and secured its largest SaaS deployment to date, reinforcing its leadership in secure, evidence-based transcription for regulated sectors. Article content Second Quarter 2025 Financial Highlights Article content Revenue: $10.4 million, decrease of 10%, from the same period in the prior year, reflecting the timing of customer volumes and market conditions. Gross Margin: 48%, up from 45.5% from the same period in the prior year, driven by automation and productivity gains. Adjusted EBITDA: $1 million, increase of $0.2 million or 24% from the same period in the prior year, marking the fifth consecutive quarter of positive results. Adjusted Operating Loss: $0.8 million, compared to $0.6 million from the same period in the prior year. Article content First Half 2025 Financial Highlights Article content Revenue: $20 million, decrease of 7%, from the same period in the prior year, reflecting the timing of customer volumes and market conditions. Gross Margin: Nearly 50%, up from 44.9% from the same period in the prior year, driven by automation and productivity gains. Adjusted EBITDA: $1.8 million, increase of $1.1 million or 164% from the same period in the prior year, reflecting sustained cost discipline and efficiency gains. Adjusted Operating Loss: $1.5 million, an improvement of $0.9 million. Article content Landmark SaaS Court Deployment: In July 2025, VIQ secured its largest SaaS engagement to date, implementing NetScribe® across 9 judicial districts and 22 counties in the U.S. Midwest. This milestone accelerates VIQ's transition to a higher-margin, subscription-based revenue model. AI-Driven Workflow Automation: The deployment integrates NetScribe®, aiAssist™, Advanced Formatter, supporting internally produced transcription with scalability and optional add-ons including domain-specific language models, advanced post-processing rules, multilingual support, and automated summarization. First Half 2025 Organic Bookings Momentum: VIQ secured $1.9 million of new bookings during first half of 2025, supporting ongoing gross margin expansion and strengthening long-term free cash flow prospects. Article content Management Commentary Article content 'In the first half of 2025, VIQ delivered 164% growth in Adjusted EBITDA, expanded gross margins to nearly 50%, and achieved our fifth consecutive quarter of positive EBITDA,' said Alexie Edwards, CFO of VIQ Solutions. 'While we reported a net loss, this includes approximately $2.0 million in non-cash expenses, such as depreciation, amortization, and stock-based compensation, with $1.1 million recorded in Q2. These charges impact earnings per share but do not affect our cash flow.' Article content 'With our largest SaaS deployment now in motion, increased bookings, and a clear focus on strengthening the balance sheet and reducing debt, we are expanding our financial flexibility to reinvest in growth. Our AI-driven platform and automation strategy continue to fuel stronger margins and sustained EBITDA gains, laying the foundation for long-term growth and value creation.' Article content A copy of the Company's unaudited financial statements and accompanying MD&A for the three and six months ended June 30, 2025 (collectively, the 'Financial Information') will be available under the Company's profile on SEDAR+ at Conference Call Details Article content VIQ will host a conference call and webcast to discuss Financial Information on August 14, 2025, at 11:00 a.m. (Eastern time). The call will consist of updates by Alexie Edwards, VIQ's Chief Financial Officer followed by a question-and-answer period. Article content Investors may access a live webcast of the call on the Company's website at or by dialing 1-888-440-4052 (North America toll-free) or +1-646-960-0827 (international) to be connected to the call by an operator using conference ID number 4983233. Participants should dial at least 10 minutes before the call starts. Article content A replay of the webcast will be available on the Company's website through the same link approximately one hour after the conference call concludes. Article content About VIQ Solutions Article content VIQ Solutions is a global provider of secure, AI-driven, digital voice and video capture technology and transcription services. VIQ offers a seamless, comprehensive solution suite that delivers intelligent automation, enhanced with human review, to drive transformation in the way content is captured, secured, and repurposed into actionable information. The cyber-secure, AI technology and services platform are implemented in the most rigid security environments including criminal justice, legal, insurance, government, corporate finance, media, and transcription service provider markets, enabling them to improve the quality and accessibility of evidence, to easily identify predictive insights and to achieve digital transformation faster and at a lower cost. Article content Forward-looking Statements Article content Certain statements included in this press release constitute forward-looking statements or forward-looking information (collectively, 'forward-looking statements') under applicable securities legislation. Such forward-looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Article content Forward-looking statements typically contain statements with words such as 'anticipate', 'believe', 'expect', 'plan', 'intend', 'estimate', 'propose', 'project' or similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions 'may' or 'will' occur. These statements are only predictions. Forward-looking statements in this press release include but are not limited to statements with respect to the Company's ability to accelerate automation, optimize costs, and improve scalability in the future, expected margin improvement, the Company's focus and its priorities, the filing of the Financial Information on SEDAR+ and the conference call to discuss the Company's financial results. Article content Forward-looking statements are based on several factors and assumptions which have been used to develop such statements, but which may prove to be incorrect. Although VIQ believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on forward-looking statements because VIQ can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding, among other things, recent initiatives, cost savings from workforce and product optimization, cost reductions from the Company's workflow solutions and that sales and prospects may increase revenue. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions that have been used. Article content Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that while considered reasonable by the Company as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the factors described in greater detail in the 'Risk Factors' section of the Company's annual information form and in the Company's other materials filed with the Canadian securities regulatory authorities. Article content These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. Such estimates and assumptions may prove to be incorrect or overstated. The forward-looking statements contained in this press release are made as of the date of this press release and the Company expressly disclaims any obligations to update or alter such statements, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. Article content Non-IFRS Measures Article content The Company prepares its financial statements in accordance with IFRS. Non-IFRS measures are provided by management to provide additional insight into our performance and financial condition. VIQ believes non-IFRS measures are an important part of the financial reporting process and are useful in communicating information that complements and supplements the consolidated financial statements. Article content Adjusted EBITDA and adjusted operating loss are not measures recognized by IFRS and do not have a standardized meanings prescribed by IFRS. Therefore, Adjusted EBITDA and adjusted operating loss may not be comparable to similar measures presented by other issuers. Investors are cautioned that Adjusted EBITDA and adjusted operating loss should not be construed as alternatives to net income (loss) as determined in accordance with IFRS. For a reconciliation of net income (loss) to Adjusted EBITDA and adjusted operating loss please see the Company's MD&A for three and six months ended June 30, 2025. Article content To evaluate the Company's operating performance as a complement to results provided in accordance with IFRS, the term 'Adjusted EBITDA' refers to net income (loss) before adjusting earnings for stock-based compensation, depreciation, amortization, interest expense, accretion, and other financing expense, (gain) loss on revaluation of options, (gain) loss on revaluation of restricted share units, gain (loss) on revaluation of derivative warrant liability, restructuring costs, strategic review costs, loss on modification of debt, impairment of property and equipment, impairment of goodwill and intangibles, other expense (income), foreign exchange (gain) loss, current and deferred income tax expense. We believe that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of the Company. Article content We believe that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, impairment of goodwill and intangibles, loss on modification or extinguishment of debt, other expense (income), and foreign exchange (gain) loss. Accordingly, we believe that this measure may also be useful to investors in enhancing their understanding of the Company's operating performance. Article content The term 'adjusted operating loss' refers to net income (loss) excluding the impact of strategic review costs. Management believes it is appropriate to adjust for this item because strategic review costs do not relate to operating activities of the Company and is useful supplemental information as it provides an indication of the results generated by the Company's main business activities. The presentation of this measure enables investors and analysts to better understand the underlying performance of our business activities. Article content We calculate 'bookings' for a given period as the estimated contract value (for services tied to volume) of our recurring client contracts entered into during the period from (i) new clients and (ii) net upgrades by existing clients within the same workload, plus the actual (not annualized) estimated value of professional services consulting, advisory or project-based orders received, software licenses, subscriptions, SaaS, and hardware during the period. Article content Trademarks Article content This press release includes trademarks, such as 'NetScribe', which are protected under applicable intellectual property laws and are the property of VIQ. Solely for convenience, our trademarks referred to in this press release may appear without the ® or TM symbol, but such references are not intended to indicate, in any way, that we will not assert our rights to these trademarks, trade names, and services marks to the fullest extent under applicable law. Trademarks that may be used in this press release, other than those that belong to VIQ, are the property of their respective owners. Article content June 30, 2025 December 31, 2024 Assets Current assets Cash $ 1,117,164 $ 1,573,341 Trade and other receivables, net of allowance for doubtful accounts 4,422,766 3,768,699 Inventories 25,914 23,508 Prepaid expenses and other deposits 890,576 1,183,496 Non-current assets 6,456,420 6,549,044 Restricted cash 177,560 169,097 Property and equipment, net 541,883 654,223 Right-of-use assets, net 349,610 153,794 Intangible assets 5,183,967 5,661,614 Goodwill 11,929,976 11,628,213 Total assets $ 24,639,416 $ 24,815,985 Liabilities Current liabilities Trade and other payables and accrued liabilities $ 6,846,250 $ 5,673,346 Income taxes payable 61,890 29,765 Share-based payment liability 643 19,366 Derivative warrant liability 38,019 35,238 Current portion of long-term debt 17,099,730 15,988,401 Current portion of lease obligations 206,345 204,802 Contract liabilities 1,475,909 1,635,041 Non-current liabilities 25,728,786 23,585,959 Long-term lease obligations 167,884 – Other long-term liabilities 924,371 949,622 Total liabilities 26,821,041 24,535,581 Shareholders' equity Capital stock 77,665,053 77,593,993 Contributed surplus 9,364,786 9,145,162 Accumulated other comprehensive loss (1,341,494 ) (1,356,521 ) Deficit (87,869,970 ) (85,102,230 ) Total shareholders' equity (2,181,625 ) 280,404 Total liabilities and shareholders' equity $ 24,639,416 $ 24,815,985 Article content VIQ Solutions Inc. Interim Condensed Consolidated Statements of Loss and Comprehensive Loss (Expressed in US dollars, unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Revenue $ 10,445,488 $ 11,575,614 $ 20,024,513 $ 21,497,287 Cost of sales 5,436,220 6,312,797 10,040,105 11,841,912 Gross profit 5,009,268 5,262,817 9,984,408 9,655,375 Expenses Selling and administrative expenses 3,866,110 4,328,687 7,676,752 8,639,461 Research and development expenses 179,957 155,416 320,476 320,526 Stock-based compensation 292,682 111,283 291,865 139,816 Gain on revaluation of RSUs (21,482 ) (18,534 ) (19,553 ) (47,311 ) Loss (gain) on revaluation of the derivative Warrant liability 8,260 7,479 1,238 (49,686 ) Foreign exchange gain (354,295 ) (590,719 ) (438,327 ) (487,886 ) Depreciation 175,864 194,237 340,547 389,221 Amortization 658,581 813,889 1,366,158 1,620,346 Interest expense 439,704 405,965 928,326 794,889 Accretion and other financing costs 456,029 425,216 875,059 752,094 Restructuring costs (recovery) 37,349 5,874 36,066 (3,820 ) Strategic review costs 119,124 – 1,294,726 – Other income (1,911 ) (10,208 ) (8,118 ) (21,413 ) Total expenses 5,855,972 5,828,585 12,665,215 12,046,237 Current income tax expense 52,654 6,063 86,933 21,107 Income tax expense 52,654 6,063 86,933 21,107 Net loss for the period $ (899,358 ) $ (571,831 ) $ (2,767,740 ) $ (2,411,969 ) Exchange (loss) gain on translation of foreign operations 16,115 (483,076 ) 15,027 (795,107 ) Comprehensive loss for the period $ (883,243 ) $ (1,054,907 ) $ (2,752,713 ) $ (3,207,076 ) Net loss per share Basic (0.02 ) (0.01 ) (0.05 ) (0.05 ) Diluted (0.02 ) (0.01 ) (0.05 ) (0.05 ) Weighted average number of common shares outstanding – basic 52,563,142 51,348,578 52,449,214 48,065,488 Weighted average number of common shares outstanding – diluted 52,563,142 51,348,578 52,449,214 48,065,488 Article content The following is a reconciliation of Net Loss to Adjusted EBITDA, the most directly comparable IFRS measure for the three and six months ended June 30, 2025, and 2024: Article content Three months ended June 30 Six months June 30 (Unaudited) 2025 2024 2025 2024 Net Loss (899,358) (571,831) (2,767,740) (2,411,969) Add: Depreciation 175,864 194,237 340,547 389,221 Amortization 658,581 813,889 1,366,158 1,620,346 Interest expense 439,704 405,965 928,326 794,889 Current income tax (recovery) expense 52,654 6,063 86,933 21,107 EBITDA 427,445 848,323 (45,776) 413,594 Accretion and other financing costs 456,029 425,216 875,059 752,094 Gain on revaluation of RSUs (21,482) (18,534) (19,553) (47,311) Loss (Gain) on revaluation of the derivative warrant liability 8,260 7,479 1,238 (49,686) Restructuring costs 37,349 5,874 36,066 (3,820) Strategic Review Costs 119,123 – 1,294,726 – Other income (1,911) (10,208) (159,978) (21,413) Stock-based compensation 292,682 111,283 291,865 139,816 Foreign exchange gain (354,295) (590,719) (438,327) (487,886) Adjusted EBITDA 963,201 778,714 1,835,320 695,388 Article content The following is a reconciliation of Net Loss to Adjusted operating loss, the most directly comparable IFRS measure for the three and six months ended June 30, 2025, and 2024: Article content Article content Article content Article content Article content Contacts Article content Media Contact: Article content Article content Jacob Manning VIQ Solutions Article content Article content Article content
