Slides
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Adcore's Q3 2025 Earnings Call TSX:ADCO | OTCQX:ADCOF November, 2025
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TSX:ADCO | OTCQX:ADCOF Adcore's Q3 2025 Earnings Call | November 2025 Hosts Amit KonfortyNick Campbell CEO Omri Brill CFOInvestor Relations 2
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Adcore's Q3 2025 Earnings Call | November 2025 Agenda • Forward Looking Statements • CEO Opening Remarks • CFO Financial Highlights • Q&A 3
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Adcore's Q3 2025 Earnings Call | November 2025 This conference call contains certain forward-looking information and forward-looking statements (collectively “forward-looking information”), including statements about the Company. Forward-looking information may relate to the Company’s financial outlook and guidance (including revenue, gross profit, gross margin and Adjusted EBITDA), and anticipated events or results and may include information regarding the Company’s financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, plans and objectives. Particularly, information regarding the Company’s expectations of future results, performance, achievements, prospects or opportunities or the markets in which the Company operates, the achievement of advances in and expansion of the Company’s technologies and platforms, expectations regarding the Company’s revenue, gross margins and future profitability, the future impact of the COVID-19 pandemic and the Russian invasion of Ukraine and reactions thereto, is forward-looking information. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements and forward-looking information. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward- looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. Such risks include the factors discussed under the "Risk and Uncertainties" section in the Company’s quarterly and annual MD&A’s. Other factors that could cause actual results or events to differ materially include, but are not limited to, loss of major clients, inability to acquire new clients, significant changes to policies and guidelines of media partners and any significant change to the global business environment and/or in specific territories in which the Company operates. These factors should be considered carefully and listeners and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this call and financial results press release are based upon what management believes to be reasonable assumptions, the Company cannot assure listeners and readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this conference call, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Forward Looking Statements and Information 4
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Adcore's Q3 2025 Earnings Call | November 2025 CEO Opening Remarks 5 CEO Opening Remarks
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Adcore's Q3 2025 Earnings Call | November 2025 Q3 2025 Report Highlights Q3 was steady operationally with regional strength in EMEA, up 25%, and APAC, up 7%, offsetting softness in North America. We maintained strong cost discipline - R&D down 10%, SG&A down 12%, and Adjusted EBITDA up 56% year-to-date. 6
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Adcore's Q3 2025 Earnings Call | November 2025 Q4 2024 Q1 2025Q3 2024 11.2 7 7.8 3.9 3.13.7 Q2 2025 Q3 2025 6.5 7.6 3.1 3.1 CAD in million Quarterly Revenue Gross Profit Quarterly Revenue 7
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Adcore's Q3 2025 Earnings Call | November 2025 CAD in millions Q4 2023 3.7M Q1 2024 3.1M 3.1M 3.1M 3.1M Quality Growth KPIs Q3 2023 3.3M Q2 2023 3M Q2 2023 6.2M Q3 2023 7.6 M Q1 2024 8M8.1 M Q4 2023 3.7M 3.9M Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025Q2 2024 2.9M Q2 2024 7.3M Q3 2024 6.7M Q4 2024 Q1 2025 Q2 2025 Q3 2025 10.8M 10.6M 9M 8 ↑8% YoY 7.3M Cash and cash equivalent Gross profit
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Adcore's Q3 2025 Earnings Call | November 2025 9 Earnings Report Hightlights Q3 2025 • EMEA revenue growth: grew by 25% YoY increase. • APAC revenue growth: grew by 7% YoY increase. • Cash and Cash equivalent: grew 8% YoY. • R&D expenses: decreased from 7% to 6% of total revenues, reflecting improved cost efficiency. • SG&A expenses: amounted to CAD$2,856 compared to CAD$3,232, reflecting a reduction of CAD$376 thousand YoY.
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Adcore's Q3 2025 Earnings Call | November 2025 10 Highlights 01-09/25 • Positive Adjusted EBITDA: CAD$485 thosands for the nine months ended 30 September, 2025 compared to CAD$310 thousand in the same period last year . • Reduced net loss: decreased from CAD$1,262 to CAD$1,075 thousand, reflecting a reduction of CAD$187 thousand or 15% YoY. • Gross Margins: 44%, compared to 45% in the same period last year. • R&D expenses: decreased from 8% to 7% of total revenues, reflecting improved cost efficiency.
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Adcore's Q3 2025 Earnings Call | November 2025 2025 Growth Strategy: Accelerating Momentum Before We Dive Deeper: 11 Scale Revenue Targeting 25% growth to reach $40 million in annual revenue. Strengthen Profitability 6 straight quarters of positive Adjusted EBITDA. Grow SaaS Recurring Revenue Reaching $4M–$5M ARR from our applications. AI-Driven Innovation Deep AI integration across R&D, apps, and marketing solutions.
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Adcore's Q3 2025 Earnings Call | November 2025 12 A key milestone in Proposaly’s go-to-market strategy. The new website strengthens brand positioning and lead generation through refined messaging and UX. The new blog expands our content strategy and builds thought leadership to drive organic growth. Proposaly Website & Blog Launch KEY GROWTH INITIATIVES THIS QUARTER https:/ /proposaly.io/ https:/ /blog.proposaly.io/
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Adcore's Q3 2025 Earnings Call | November 2025 13 Introduced a new AI Showreel section on Adcore’s website, showcasing AI-generated video campaigns created for global clients. This initiative highlights Adcore’s leadership in AI- driven creative production and strengthens our positioning in performance marketing innovation. Creative Studio: AI Showreel Launch KEY GROWTH INITIATIVES THIS QUARTER https:/ /www.adcore.com/adcore-studio/
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Adcore's Q3 2025 Earnings Call | November 2025 14 Adcore initiated and delivered Ofir’s Park, a new community bike and skate park honoring the memory of Ofir Libstein and the children of Sha’ar HaNegev. The park stands as a symbol of resilience and renewal, supporting youth and local recovery efforts in Israel’s southern region. Community Impact: Ofir’s Park, Ruhama KEY GROWTH INITIATIVES THIS QUARTER
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Adcore's Q3 2025 Earnings Call | November 2025 TSX:ADCO | OTCQX:ADCOF Significant share price upside opportunity as Adcore rises to peers: As of November 11, 2025. Currency in CAD. All numbers in millions Comparable Companies $0.24 Current share price November 11th, 2025 TSX:ADCO | OTCQX:ADCOF 15 Fluent Inc Criteo SA Evertz Technologies Ltd Inuvo Inc Kinaxis Inc Magnite Inc PubMatic Inc Integral Ad Science Holding Corp Illumin Holdings Inc DoubleVerify Holdings Inc FLNT US CRTO US ET TO INUV US KXS TO MGNI US PUBM US IAS US ILLM TO DV US 77 1,672 963 52 4,888 2,836 710 2,396 54 2,349 103 1,477 857 53 4,624 3,030 582 2,253 15 2,210 1.4 1.0 2.8 0.5 14.2 5.0 2.3 3.5 0.2 2.6 -4.9 3.1 8.4 -13.9 72.3 15.4 12.2 12.7 -2.5 11.5 COMPANY NAME MARK CAPTICKER EV / GROSS PROFIT EV / EBITDA ENTERPRISE VALUE (EV) UPSIDE 445% 97%Upside ADCORE Average ADCO TO 15 6 0.6 3.4 5.8 11.4
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Adcore's Q3 2025 Earnings Call | November 2025 16 CFO Financial Highlights
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17 Comprehensive Income Three months ended September 30, 2025 Three months ended September 30, 2024 Revenues Cost of revenues Gross profit RnD SG&A Operating profit (loss) Finance expenses Finance income Profit (loss) before taxes on income Tax expenses (income) Total Comprehensive Profit (loss) for the period 7.6 4.5 3.1 0.5 2.9 (0.3) 0.2 0.1 (0.4) 0.0 (0.4) 7.8 4.1 3.7 0.6 3.2 (0.1) 0.1 0.0 (0.2) 0.0 (0.2) CAD in million TSX:ADCO | OTCQX:ADCOF Adcore's Q3 2025 Earnings Call | November 2025
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1818 Revenues and Gross Profit CAD in millions Gross profit COR 01-09/24 01-09/25 Nine months 2022 26.7 15.2 11.5 2023 31.2 18.5 12.7 Yearly 2024 32.5 18.9 13.6 21.3 12 9.3 Q3 2024 7.8 4.1 3.7 Quarterly 21.1 11.4 9.7 Q3 2025 7.6 4.5 3.1 TSX:ADCO | OTCQX:ADCOF Adcore's Q3 2025 Earnings Call | November 2025
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Q3 2025 Revenue Breakdown 19 North America -50% YoY 14% of total EMEA +25% YoY APAC +7% YoY 39% of total 47% of total TSX:ADCO | OTCQX:ADCOF Adcore's Q3 2025 Earnings Call | November 2025
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Selling, General & administrative expenses 20 Three months Q3 2025 2.9M Q3 2024 3.2M 12% Nine months 01-09/2501-09/24 9M 8.7M 4% TSX:ADCO | OTCQX:ADCOF Adcore's Q3 2025 Earnings Call | November 2025
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As of Sep 19, 2021. Currency in CAD. All numbers in millions TOTAL ASSETS 18.6 23.5 30.09.25 31.12.24 CURRENT ASSETS Cash and cash equivalents Trade accounts receivable, net Other accounts receivable Total current assets NON-CURRENT ASSETS Property, plant and equipment, net Intangible assets, net Lease asset, net Total non-current assets 7.3 5.6 0.4 13.3 0.4 4.2 0.7 5.3 10.8 6.7 0.6 18.1 0.5 4.1 0.8 5.4 Financial Position - Assets CAD in million 21 TSX:ADCO | OTCQX:ADCOF Adcore's Q3 2025 Earnings Call | November 2025
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22 Financial Position - Liabilities 30.09.25 31.12.24 CURRENT LIABILITIES Trade accounts payable Other accounts payable Lease liability Total current liabilities 5.3 1.9 0.2 7.4 0.5 0.5 8.1 2.4 0.2 10.7 0.7 0.7 CAD in million Debt free TOTAL LIABILITIES & EQUITY 18.6 23.5 Lease liability Total non-current liabilities NON-CURRENT LIABILITIES 10.7Total Equity 12.1 TSX:ADCO | OTCQX:ADCOF Adcore's Q3 2025 Earnings Call | November 2025
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Adjusted EBITDA 23 TSX:ADCO | OTCQX:ADCOF Adcore's Q3 2025 Earnings Call | November 2025 Three months ended September 30, 2025 Nine months ended September 30, 2025 Three months ended September 30, 2024 Nine months ended September 30, 2024 Operating profit (loss) Depreciation and amortization Share-based payments Other non-operational items Total Adjustments Adjusted EBITDA (278) 361 20 19 400 122 (998) 1,161 86 236 1,483 485 (122) 390 14 0 404 282 (1,069) 1,114 54 211 1,379 310 CAD in thousands
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Adcore's Q3 2025 Earnings Call | November 2025 Q&A
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Thank You. For more information visit adcore.com/investors TSX:ADCO | OTCQX:ADCOF TSX:ADCO | OTCQX:ADCOF Adcore's Q3 2025 Earnings Call | November 2025