NORTH YORK, ON / ACCESS Newswire / October 6, 2026 / ZTEST Electronics Inc. ("ZTEST" or the "Company") (CSE:ZTE)(OTCID:ZTSTF) is pleased to announce its audited financial results for the fiscal year ended June 30, 2026, with revenues of $9,199,804, an increase of 10.6% over fiscal 2025, and net income increasing 6.8% to $1,162,251 ($0.032 per share).

Gross margin for the year climbed 14.8% to $3,967,638 from $3,456,883 in fiscal 2025, with the gross margin percentage improving to 43.1% from 41.6%. EBITDA for the year increased 7.8% to $1,981,055, and operating cash flow, before changes in non-cash working capital, was $1,661,240 compared to $1,657,486 in fiscal 2025.

Revenue growth strengthened through the year. Fourth quarter revenues were $2,495,236, an increase of 18.1% from $2,113,637 in Q4 2025, marking the third consecutive quarter of year over year revenue growth and the highest quarterly revenue reported by the Company since the fourth quarter of fiscal 2024. Fourth quarter gross margin rose 22.4% to $1,065,814 from $871,074, with the gross margin percentage improving to 42.7% from 41.2%.

Fourth quarter net income was $123,096 ($0.003 per share), compared to $299,569 ($0.008 per share) in Q4 2025, and EBITDA was $298,404, compared to $493,928. Fourth quarter results were reduced by a one-time retiring allowance of $260,000 payable to the Company's former Chief Executive Officer under the separation agreement announced in June 2026, the full value of which was charged against income in the quarter and is included in selling, general and administrative expenses.

The Company ended the year with cash and cash equivalents of $5,464,705, an increase of $1,359,974 (33.1%), and over the course of the fiscal year added $1,483,226 (29.6%) to working capital and $1,323,653 (22.6%) to capital under management. The Company's equipment term loan was repaid in full upon maturity in April 2026, and its $1,000,000 bank operating line remained undrawn.

(1) EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-IFRS financial measure, does not have a standardized meaning under IFRS and may not be comparable to similar measures used by other companies. A reconciliation of EBITDA to net income is provided in the Company's Management's Discussion and Analysis for the year ended June 30, 2026.

(2) Operating cash flow is presented before changes in non-cash working capital items.

During fiscal 2026 and subsequent to year end, the Company underwent significant leadership changes. In December 2025 the Board of Directors was expanded with the addition of Trevor Treweeke as an independent director. In June 2026 Steve Smith resigned as President, Chief Executive Officer and a director, Dave Barnett was appointed Chair of the Board, and Stephen Harpur, CPA joined the Board as an independent director. In August 2026 Mr. Barnett was appointed President and Chief Executive Officer.

Dave Barnett, CEO, commented, "Fiscal 2026 was a year of solid progress for ZTEST. Revenue growth built steadily through the year, culminating in our strongest quarter in almost two years, and our continued improvement in gross margin percentage reflects the value our customers place on Permatech's quality, flexibility and service. Excluding the one-time cost of our leadership transition, our underlying earnings momentum remains strong.

With more than $5.4 million in cash, no bank debt and a strengthened Board, ZTEST is well positioned to build on this momentum, both by supporting continued organic growth at Permatech and by evaluating strategic growth opportunities, while maintaining our commitment to enhancing shareholder value."

The Company's audited consolidated financial statements and Management's Discussion and Analysis for the year ended June 30, 2026 are available on SEDAR+ at www.sedarplus.com.

About ZTEST Electronics Inc.

ZTEST Electronics Inc., through its wholly owned subsidiary Permatech Electronics Corporation ("Permatech"), offers Electronic Manufacturing Services (EMS) to a wide range of customers. Permatech's offering includes Printed Circuit Board (PCB) Assembly, Materials Management and Testing services. Permatech operates from an ISO 9001:2015 certified facility in North York, Ontario, Canada. Permatech is a contract assembler of complex circuit boards, serving customers in the Medical, Power, Computer, Telecommunications, Wireless, Industrial, Trucking, Wearables and Consumer Electronics markets. It specializes in servicing customers who are looking for high yield and require high quality and rapid-turnaround to produce high complexity products.

For more information contact: Dave Barnett, President and CEO 604-897-9663 email: davebarnett@ztest.com

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

FORWARD LOOKING STATEMENTS: This press release contains forward looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR+ in Canada (available at www.sedarplus.com).

SOURCE: ZTEST Electronics Inc.