Earnings release
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illumin Reports Third Quarter 2026 Financial Results Third Quarter Revenue of $42.7 Million, Up 12% Year-over-Year Exchange Revenue Grew 24% Year-over-Year to $25.5 Million Adjusted EBITDA of $1.1 Million vs $0.2 Million in the Prior Year (All monetary figures are expressed in Canadian dollars unless otherwise stated) TORONTO — November 5, 2026 — illumin Holdings Inc. (TSX: ILLM and OTCQB: ILLMF) (“illumin” or the “Company”), a leader in digital advertising that brings strategy, activation and measurement together in one unified, AI-powered platform , today announced its financial results for the third quarter ended September 30, 2026. Third Quarter 2026 Highlights ● Third quarter revenue rose 1 2% to $42.7 million from $3 8.2 million in the prior year, driven by higher Exchange service revenue growth. ● Exchange service revenue increased 24% year-over-year to $25.5 million, driven by continued strong demand from new and existing customers and expanded publisher partnerships. ● Self service revenue increas ed 3% year-over-year to $8.6 million and represented 20% of total revenue. ● Managed service revenue decreased 9% year-over-year to $8.5 million. ● Overall, revenue from our demand -side platform remained relatively stable year- over-year, decreasing approximately 3% to $17.1 million, partly driven by a strategic shift away from lower- margin accounts. ● Gross margin was 35% compared to 37% in the prior year period, reflecting increased contribution from Exchange service. ● Net revenue, or gross profit (revenue less media- related costs), increased 5% year-over-year to $14.9 million. ● Operating expenses were $16.3 million, a decrease of $1.0 million compared to the prior year , mainly driven by lower salaries and benefits from restructuring initiatives that were undertaken in previous periods. ● Adjusted EBITDA was $ 1.1 million, an improvement of $0.9 million year-over-year, primarily driven by higher revenue and cost optimization, partly offset by the revenue mix and higher sales costs associated with growth. ● Net loss narrowed to $1.8 million, down from $2.1 million in Q 3 2025, primarily reflecting the increase in Adjusted EBITDA , lower severance costs, and lower share-based compensation expenses, partially offset by a shift to a foreign exchange loss position ($1.4 million). ● On December 31, 2025, the Company commenced a normal course issuer bid (“NCIB”) to purchase for cancellation up to 3,858,045 of its outstanding common shares. Under this NCIB,
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daily purchases are limited to 25,279 common shares. The NCIB may continue to December 30, 2026 or such earlier time as the NCIB is completed or terminated at the option of the Company. During the nine months ended September 30, 2026, under this NCIB, the Company purchased and cancelled 686,558 of its outstanding common shares at an average price of $0.85 per share totaling approximately $0.6 million. ● Cash and cash equivalents totaled $30.3 million as at September 30, 2026, providing substantial liquidity to support the Company’s strategic growth initiatives . The $3.4 million quarter-over- quarter change primarily reflected planned platform investment, working capital timing, and lease payments . Excluding working capital timing, the Company generated positive cash from operations in the quarter, while working capital remained stable at $36.1 million. Business Developments ● We announced our partnership with Audience Acuity in July 2026, bringing AI-powered audience intelligence covering over 253 million verified U.S. adults and 20 billion daily refreshed signals into illumin. Early campaigns have shown over 50% lower acquisition costs and 4x higher click-through rates compared with alternative audience strategies. ● We are expanding AI across the illumin platform, including capabilities to help marketers uncover campaign insights and turn them into actionable reports, alongside strong early results from AI - powered bidding optimization and new campaign creation capabilities in development. Tal Hayek, illumin’s Co-founder and Chief Executive Officer, commented: “The third quarter marked an important period of strategic progress for illumin as we continued to position the Company for its next phase of growth. We are actively reshaping our sales organization and go-to-market strategy across North America, Europe, and Latin America to improve execution, strengthen customer engagement, and create a more scalable commercial organization. At the same time, we reached a significant product milestone with the beta launch of our AI -powered infrastructure across campaign creation, reporting, and optimization, with a full release planned for the fourth quarter. We also continued to strengthen ou r Exchange business by expanding our premium publisher relationships and attracting additional demand. Together, these initiatives reflect our commitment to building a more differentiated, efficient, and competitive technology platform, while establishing a stronger foundation for sustainable long- term growth and shareholder value.”
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Michael Amaro, Interim Chief Financial Officer, commented: “Our performance this quarter demonstrates solid top -line momentum, with revenue increasing and EBITDA improving as our strategic initiatives begin to take hold. We grew revenue by 12% year-over-year to $42.7 million and generated $1.1 million of Adjusted EBITDA , reflecting the progress we continue to make in managing our operating costs and strategic growth initiatives . Our Exchange service line continued to expand, delivering 24% year-over-year revenue growth. While we experienced a decline in our cash position in the quarter, this reflects working capital timing differences and proactive operational investments rather than structural headwinds and expect working capital movements to reverse over time to support stronger cash conversion in future periods. Looking ahead, we remain highly focused on optimizing our working capital and stabilizing cash flows to match our improved EBITDA trajectory and remain optimistic in our ability to build on our progress and to strengthen our business over the long- term.”
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The following table presents a reconciliation of Net Loss to Adjusted EBITDA for the periods ended: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2026 2025 2026 2025 Net loss for the period $ (1,824) $ (2,148) $ (4,998) $ (9,815) Adjustments: Finance income, net (283) (376) (885) (1,022) Foreign exchange loss (gain) 459 (901) (1,197) 345 Depreciation and amortization 1,832 1,619 5,196 4,492 Income tax expense (benefit) 236 336 370 (162) Share-based compensation 583 971 1,425 2,761 Severance expenses 50 379 1,059 1,828 Other non-recurring expenses 34 274 124 334 Total adjustments 2,911 2,302 6,092 8,576 Adjusted EBITDA $ 1,087 $ 154 $ 1,094 $ (1,239) Conference Call Details Third Quarter 2026 Earnings Call Date: Thursday, November 5, 2026 Time: 8:30 AM Eastern Time To register for the webcast and presentation, please visit: https://events.illumin.com/q3-2026-earnings-call Please connect 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast. A recording of the conference call webcast will be available after the call by visiting the Company’s website at https://illumin.com/investor-information.
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Non-IFRS Measures This press release makes reference to certain non -IFRS Accounting Standard measures (“non -IFRS measures”). These measures are not recognized measures under IFRS Accounting Standards (“IFRS”), do not have a standardized meaning prescribed by IFRS, and are t herefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from manage ment’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non - IFRS measures including “revenue less media -related costs”, “Gross margin”, and “Adjusted EBITDA” (as well as other measures discussed elsewhere in this press release). The term “Gross margin” refers to the amount that “revenue less media -related costs” represents as a percentage of total revenue for a given period. Gross margin is used for internal management purposes as an indicator of the performance of the Company’s solution in balancing the goals of delivering excellent results to advertisers while meeting the Company’s margin objectives and, accordingly, the Company believes it is useful supplemental information. “Adjusted EBITDA” refers to net income (loss) after adjusting for finance costs (income), impairment loss, fair value gain, income taxes, foreign exchange loss (gain), depreciation and amortization, share -based compensation, acquisition and related integration costs, severance expenses, adjustments to the car rying value of investment tax credits receivable, and other non -recurring items. The Company believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company’s main business activities before taking into consideration how those activities are financed and taxed and prior to taking into consideration depreciation of property and equipment and certain other items listed above. It is a key measure used by the Company’s management and board of directors to understand and evaluate the Company’s operating performance, to prepare annual budgets and to help develop operating plans. These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. We believe that securities anal ysts, investors, and other interested parties frequently use non -IFRS measures in the evaluation of issuers, and that these non -IFRS measures are relevant to their analysis of the Company.
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About illumin illumin is redefining how marketers plan, execute and measure digital advertising, bringing every stage of the campaign lifecycle into one strategic platform. Through an intuitive drag-and-drop Canvas, marketers can visually connect strategy, activation an d outcomes, and extend live audiences from programmatic advertising into social channels. Combining AI -powered intelligence with transparent insights, illumin gives brands and agencies the clarity to make better decisions, optimize with confidence and prov e business impact. With offices in North America, Europe, and South America, illumin supports brands and agencies across global markets. For more information, visit www.illumin.com. See More. Achieve More. https://www.illumin.com Disclaimer with regard to forward looking statements Certain statements included herein constitute “forward -looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by ma nagement at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward -looking statements. Except as required by law, the Company does no t intend, and undertakes no obligation, to update any forward -looking statements to reflect, in particular, new information or future events. For further information, please contact: Michael Amaro Interim Chief Financial Officer illumin Holdings Inc. 416-218-9888 (x5414) investors@illumin.com Please note that the following financial information is an extract from the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2026 and 2025 (the “Financial Statements”) provided for readers’ convenience and should be viewed in conjunction with the Notes to the Financial Statements, which are an integral part of the statements. The full Financial Statements and MD&A for the period may be found by accessing SEDAR+ at www.sedarplus.ca.
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illumin Holdings Inc. Condensed Interim Consolidated Statements of Financial Position (Unaudited) (In thousands of Canadian dollars) September 30, 2026 December 31, 2025 Assets Current assets Cash and cash equivalents $ 30,292 $ 43,820 Accounts receivable 37,996 36,094 Income tax receivable 660 463 Prepaid expenses and other 2,874 2,186 71,822 82,563 Non-current assets Other assets 81 113 Property and equipment 7,297 7,835 Intangible assets 16,978 14,766 Goodwill 4,870 4,870 101,048 110,147 Liabilities Current liabilities Accounts payable and accrued liabilities 35,027 39,154 Income tax payable 42 274 Lease obligations 639 598 35,708 40,026 Non-current liabilities Lease obligations 3,603 4,072 39,311 44,098 Shareholders’ equity 61,737 66,049 101,048 110,147
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illumin Holdings Inc. Condensed Interim Consolidated Statements of Comprehensive Loss (Unaudited) (In thousands of Canadian dollars, except share amounts) For the three and nine months ended September 30, 2026 and 2025 Three months ended Nine months ended 2026 2025 2026 2025 Revenue $ 42,684 $ 38,241 $ 127,906 $ 100,446 Media-related costs 27,758 24,029 82,955 59,116 Gross profit 14,926 14,212 44,951 41,330 Operating expenses Sales and marketing 6,769 7,324 22,167 22,142 Technology 4,512 4,486 12,999 13,131 General and administrative 2,642 2,902 9,874 9,458 Share-based compensation 583 971 1,425 2,761 Depreciation and amortization 1,832 1,619 5,196 4,492 16,338 17,302 51,661 51,984 Loss from operations (1,412) (3,089) (6,710) (10,654) Finance income, net (283) (376) (885) (1,022) Foreign exchange (gain) loss 459 (901) (1,197) 345 176 (1,277) (2,082) (677) Net loss before income taxes (1,588) (1,812) (4,628) (9,977) Income tax (benefit) expense 236 336 370 (162) Net loss for the period (1,824) (2,148) (4,998) (9,815) Basic and diluted net loss per share (0.03) (0.04) (0.10) (0.19) Other Comprehensive Loss Items that may be subsequently reclassified to net loss: Exchange (loss) gain on translating foreign operations 42 (210) (158) (584) Comprehensive loss for the period (1,782) (2,358) (5,156) (10,399)
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illumin Holdings Inc. Condensed Interim Consolidated Statements of Cash Flows (Unaudited) (In thousands of Canadian dollars) For the nine months ended September 30, 2026 and 2025 2026 2025 Cash provided by (used in) Operating activities Net loss for the period $ (4,998) $ (9,815) Adjustments to reconcile net loss to net cash flows Depreciation and amortization 5,196 4,492 Finance income, net (885) (1,022) Share-based compensation 1,425 2,761 Foreign exchange (gain) loss (1,197) 345 Unpaid severance expense 246 393 Income tax expense (benefit) 371 (162) Change in non-cash operating working capital Accounts receivable (4,249) 7,729 Prepaid expenses and other 40 457 Other assets 35 2 Accounts payable and accrued liabilities (2,479) (7,120) Income taxes paid, net (674) (565) Interest received, net 1,109 1,270 (6,060) (1,235) Investing activities Additions to property and equipment (870) (1,486) Additions to intangible assets (6,007) (6,919) (6,877) (8,405) Financing activities Repayment of international loans - (52) Payment of leases (668) (1,519) Repurchase of common shares for cancellation (581) (1,229) Proceeds from the exercise of stock options - 189 (1,249) (2,611) Decrease in cash and cash equivalents (14,186) (12,251) Impact of foreign exchange on cash and cash equivalents 658 (504) Cash and cash equivalents – beginning of period 43,820 55,952 Cash and cash equivalents – end of period 30,292 43,197 Supplemental disclosure of non-cash transactions Unpaid additions (reversals) to property and equipment, net (7) 162