Integrated Rewards delivers record revenue with 91% sequential growth as Company achieves positive adjusted EBITDA for the quarter

TORONTO, ON / ACCESS Newswire / April 27, 2026 / EQ Inc. (TSXV:EQ.V) ("EQ Works" or the "Company"), a leader in AI and data driven software and solutions, today announced its financial results for the fourth quarter and the year ended December 31, 2025. Revenue for the fourth quarter was $3.2 million, an increase of over 28% from Q3 2025, and the Company generated a positive adjusted EBITDA of $214,000, demonstrating EQ's continued focus on profitability and sustainable growth.

The revenue increase was the result of continued client demand for EQ's data-driven media solutions and the exceptional performance of Integrated Rewards, which delivered its best quarter ever with 91% sequential growth over Q3 2025 and 17% growth over Q4 2024. Gross margin for the quarter was approximately 41% and the Company's adjusted EBITDA represented a 569% improvement over the same period in 2024.

Revenue for the year ended December 31, 2025 was $10.1 million, a 3% increase over the prior year. After years of investing in technology, data, and AI-driven solutions, the Company made a deliberate strategic decision to focus on higher margin, recurring revenue lines of business while exiting lower margin campaigns that did not fully leverage EQ's data and analytics capabilities. This discipline drove a 51% improvement in adjusted EBITDA loss for the year, narrowing from $0.9 million in 2024 to $0.4 million in 2025, and contributed to a profitable quarter in Q4.

Significant Milestones and Highlights During the Year:

• Generated positive cash flow from operating activities of approximately $0.8 million, reflecting improved operational efficiencies.

• Integrated Rewards delivered record annual revenue with a 44% increase over 2024, including its best quarter ever in Q4 with 91% sequential growth.

• Secured multi-year deal for new AI-powered real estate platform with one of Canada's leading QSR organizations.

• Card-linked offers on the Integrated Rewards platform more than doubled in 2025, reflecting strong merchant and partner demand.

• Secured a $1.45 million media engagement with a leading automotive brand, demonstrating the confidence in EQ's strong targeting and audience profiling technology.

• Launched new white label platforms for several Integrated Rewards customers expanding the reach of its card-linked rewards infrastructure across new partner networks.

• Continued to invest in and expand EQ's proprietary data and AI capabilities, driving meaningful advances in audience targeting, rewards intelligence, and market insights for clients across multiple verticals.

Throughout 2025, EQ continued to invest in and expand its proprietary technology and AI data platforms, with ClearLake emerging as a key driver of client interest and engagement across multiple verticals. These investments have built a strong foundation of proprietary data assets and AI capabilities that are difficult to replicate and are increasingly being recognized by brands, agencies, and partners across Canada. The expansion of ClearLake into audience intelligence, real estate site selection, and operator performance capabilities reflects the growing demand for EQ's platform and positions the Company well for deeper, longer term partner relationships and a stronger recurring revenue base in 2026.

"2025 was the year our strategy began to translate into tangible results," said Geoffrey Rotstein, President and CEO of EQ Works. "Integrated Rewards delivered record revenue, we generated positive adjusted EBITDA in Q4, and new client wins across multiple verticals validated the investments we've made in proprietary data and AI-driven solutions. Our focus on higher-margin, recurring-revenue opportunities improved margins and reduced our adjusted EBITDA loss for the year. That discipline remains central to our strategy as we head into 2026 and positions us to continue improving profitability and long-term growth."

Subsequent Events:

During March 2026, the Company granted 150,000 stock options to employees. These stock options are exercisable at $0.94 per share and will expire on March 17, 2031. The stock options vest 1/3 every 12 months over the thirty-six months following the grant date and are governed by the terms and conditions of the Company's stock option plan. During March 2026, the Company also granted 60,000 stock options to a consultant. These stock options are exercisable at $0.94 per share and will expire on March 17, 2027. The stock options vested immediately and are governed by the terms and conditions of the Company's stock option 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) depreciation of right-of-use assets (e) impairment of goodwill and intangible assets (f) gain from acquisition related transactions (g) 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 proprietary data assets, advanced analytics, and artificial intelligence, EQ Works creates actionable intelligence for businesses to attract, retain, and grow the customers that matter most. The Company's proprietary ClearLake SaaS platform delivers audience intelligence, real estate site selection, and operator performance capabilities, while its data driven media solutions help Canadian organizations make faster, more confident decisions that translate into measurable business outcomes.

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 year ended December 31, 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
2 Bloor Street West, Suite 700 | Toronto, Ontario | M4W 3E2
press@eqworks.com

SOURCE: EQ Inc.