Earnings release
Page 1
Martello Reports Financial Results for the Second Quarter of the 2026 Fiscal Year Operational restructuring announced subsequent to quarter-end transitions Vantage DX to End of Sale (EOS) with the aim of accelerating positive cashflow and creating the foundation for future growth. Initiatives to maximize future growth of the Mitel business line are focused on Mitel Performance Analytics (MPA) product development, which includes integrating Mitel artificial intelligence (AI) capabilities and expanding Mitel platform support. This business line continues to provide a stable source of recurring revenue. Amendment to the loan agreement with Wesley Clover International extended the maturity date by two years and replaced the interest rate of US Prime plus 8.75% with a fixed rate of 12%. Management believes there is a growth opportunity in advancing innovation initiatives that leverage Martello's technology and expertise in service assurance to participate in the rapidly developing market for AI management and assurance solutions. /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES ./ OTTAWA, ON , Nov. 13, 2025 /CNW/ - Martello Technologies Group Inc. , ("Martello" or the "Company") (TSXV: MTLO), a provider of experience monitoring solutions for communication and collaboration systems such as Microsoft Teams and Mitel, today released financial results for the three and six months ended September 30, 2025 . Martello's software proactively detects performance issues before they impact users of these services. "Martello's operational restructuring is focused on creating the foundation for sustainable growth in the future", said Jim Clark , Chief Executive Officer of Martello. "We remain committed to strengthening the MPA value proposition and extending the use of our legacy products. At the same time, we are advancing innovation initiatives that apply Martello's expertise in service performance management to the emerging AI management and assurance market." Terence Matthews , Chairman of Martello highlights the opportunity for Martello in the Mitel business line with MPA (Mitel Performance Analytics): "The longstanding partnership between Mitel and Martello continues with advanced MPA features that empower partners to be more efficient, proactive, and productive in their support of Mitel customers worldwide. I'm pleased that this has included the integration of MPA with Mitel's AI capabilities, and I look forward to more AI-driven innovation within the Martello product programs, all good for our future." Q2 FY26 Financial Highlights Financial Highlights September 30, September 30, September 30, September 30, (in 000's) 2025 2024 2025 2024 (Three months ended) (Six months ended) Sales $ 2,999 3,640 6,087 7,437 Cost of Goods Sold 466 509 927 1,005 Gross Margin 2,533 3,131 5,160 6,431 Gross Margin % 84.5 % 86.0 % 84.8 % 86.5 % Operating Expenses 9,611 4,197 14,140 8,244 Loss from operations (7,078) (1,067) (8,980) (1,813)
Page 2
Other income/(expense) (374) (198) (604) (605) Loss before income tax (7,452) (1,265) (9,584) (2,418) Income tax recovery (expense) (2) 13 (2) 128 Net loss (7,455) (1,252) (9,586) (2,290) Total Comprehensive loss $ (7,688) (1,105) (9,621) (2,198) EBITDA (1) $ (6,517) (426) (7,672) (694) Adjusted EBITDA (1) $ (759) (582) (1,953) (775) (1) Non-IFRS measure. See "Non-IFRS Financial Measures". Revenue of $3M was 18% lower than the same quarter of the prior year, primarily due to lower renewal rates on sunsetting legacy product offerings. Sunsetting legacy product revenue declined by 34.8% or $0.5M in Q2 FY26 compared to Q2 FY25. The ongoing decline of legacy product revenue is proceeding as expected. Revenue from the Mitel business segment decreased by 5% in Q2 FY26 compared to the same period in the prior year. This decrease is attributable to a continued shift in the revenue mix from various MPA offerings. The Mitel business represents a growth opportunity as it continues to be a large source of revenue and gross margin, representing 50% of total revenues in Q2 FY26 (compared to 43% in Q2 FY25). Martello works closely with Mitel to ensure that MPA remains well-positioned to support both emerging and established market segments, with an emphasis on high-growth opportunities. Vantage DX monthly recurring revenue ("MRR") declined 15% year-over-year in Q2 FY26, while overall MRR fell 18% to $0.97M from $1.19M in the prior year. The decreases were primarily driven by customer attrition, expected declines in sunsetting legacy product renewals, and changes in the mix of users subscribed to certain Mitel offerings. 97% of total revenues were recurring in Q2 FY26 compared to 98% in Q2 FY25. Gross margin was 84.5% in Q2 FY26 compared to 86% in Q2 FY25. The decrease in gross margin reflects a proportionally larger decline in revenue relative to the reduction in cost of sales. Operating expenses for Q2 FY26 rose 129% to $9.61M , primarily due to a $5.9M impairment of intangible assets, which relate to the Modern Workplace Optimization segment and the transition of Vantage DX to End of Sale status. As a result of this transition, management assessed the related intangible assets and concluded that the carrying value was no longer recoverable, resulting in an impairment charge. Excluding this impairment, operating expenses decreased $0.49M (12%), mainly reflecting lower compensation costs following workforce reductions. Loss from operations was $7.08M compared to a loss of $1.07M in the same period of FY25, an increase of $6.01M or 564%, primarily attributable to the write-off of intangible assets and decreased revenue slightly offset by lower operating expenses as described above. Adjusted EBITDA (a non-IFRS measure) was a loss of $0.76M in Q2 FY26 compared to a loss of $0.58M in Q2 FY25, due to a decrease in revenue, partially offset by lower operating expenses and cost of sales resulting from cost optimization initiatives. The Company's cash and short-term investments balance was $2.11M as of September 30, 2025 (compared to $6.69M at March 31, 2025 ), primarily due to the net loss of $9.58M in FY26 to date. The financial statements, notes and Management Discussion and Analysis ("MD&A") are available under the Company's profile on SEDAR+ at www.sedarplus.ca , and on Martello's website at www.martellotech.com . The financial statements include the wholly-owned subsidiaries of Martello. All amounts are reported in Canadian dollars. MRR is a non-IFRS measure, representing average monthly recurring revenues earned in a fiscal quarter. This press release does not constitute an offer of the securities of the Company for sale in the United States . The securities of the Company have not been registered under the United States Securities Act of 1933, (the " 1933 Act ") as amended, and may not be offered or sold within the
Page 3
United States absent registration or an exemption from registration under the 1933 Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. About Martello Technologies Group Martello (TSXV: MTLO) is a technology company that provides experience monitoring solutions for enterprise collaboration platforms such as Microsoft Teams and Mitel unified communications. Martello is a public company headquartered in Ottawa, Canada . Learn more at http://www.martellotech.com Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release. Cautionary Note Regarding Forward-Looking Information This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods and " includes, but is not limited to, statements with respect to activities, events or developments that the Company expects or anticipates will or may occur in the future, including expectations regarding the operational restructuring and its aim of accelerating positive cashflow, the aim to maximize future growth of the Mitel business line, the expectation of a growth opportunity in advancing innovation initiatives to participate in the rapidly developing market for AI management and assurance solutions, and other activities, events or developments that the Company expects or anticipates will or may occur in the future. Forward-looking information is neither a statement of historical fact nor assurance of future performance. Instead, forward-looking information is based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking information relates to the future, such statements are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking information. Therefore, you should not rely on any of the forward-looking information. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking information include, among others, the following: Continued volatility in the capital or credit markets and the uncertainty of additional financing. Our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so. Changes in customer demand. Disruptions to our technology network including computer systems and software, as well as natural events such as severe weather, fires, floods and earthquakes or man-made or other disruptions of our operating systems, structures or equipment. Delayed purchase timelines and disruptions to customer budgets, as well as Martello's ability to maintain business continuity. and other risks disclosed in the Company's filings with Canadian Securities Regulators, which are available on the Company's profile on SEDAR+ at www.sedarplus.ca .
Page 4
Any forward-looking information provided by the Company in this news release is based only on information currently available and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward- looking information, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. SOURCE Martello Technologies Group Inc. View original content to download multimedia: http://www.newswire.ca/en/releases/archive/November2025/13/c1708.html %SEDAR: 00008155E For further information: CONTACTS: Tracy King, Vice President, Communications and Regulatory, tking@martellotech.com, 613.410.7636; Jim Clark, CEO, jclark@martellotech.com, 613.271.5989 CO: Martello Technologies Group Inc. CNW 18:04e 13-NOV-25