Renoworks Announces Third Quarter 2025 Financial Results

Renoworks Announces Third Quarter 2025 Financial Results Canada NewsWire CALGARY, AB, Nov. 12, 2025 Strong licensing and hosting revenue performance, sixth consecutive quarter of profitability highlights further transition toward recurring revenue CALGARY, AB, Nov. 12, 2025 /CNW/ - Renoworks Software Inc. (TSXV: RW) (OTC: ROWKF) ("Renoworks" or the "Company"), an industry leader in visualization, design, and lead-generation technology for the home renovation and new-construction sectors, announces its financial results for the three and nine months ended September 30, 2025. The financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR+ at www.sedarplus.ca. Unless otherwise stated, all dollar amounts are in Canadian dollars. Financial Highlights for the Nine Months Ended September 30, 2025 ("YTD 2025") with comparatives for the nine months to September 30, 2024 ("YTD 2024") are as follows: Total revenue of $6,015,564, up 15% from $5,210,091 in YTD 2024. Recurring Licensing and hosting revenue of $2,672,998, up 36% from $1,961,850 in YTD 2024. Libraries revenue of $703,756, up 41% from $498,537 in YTD 2024. Gross margin improved to 76%, compared to 74% in YTD 2024. Adjusted EBITDA of $196,921, up from $49,793 in YTD 2024.  Net income of $113,070, compared to a net loss of $2,333 in YTD 2024. Deferred Revenue of $2,386,726 at September 30, 2025, compared to $2,519,797 at December 31, 2024. Working capital positive at $275,658, compared to a deficit of $121,451 at December 31, 2024.  Excluding deferred revenue, a significant non-cash item included in working capital, the Company's working capital at September 30, 2025, is positive $2,440,210 ($2,157,879 – Dec 31, 2024). Cash balance at September 30, 2025, was $1,548,953, flat from $1,536,671 at year-end 2024. As at Sept 30, 2025, the Company had 40,817,968 common shares issued and outstanding versus 40,664,635 at December 31, 2024. Sixth consecutive quarter of profitability, reflecting disciplined cost management and recurring revenue expansion. Financial Highlights for the Three Months Ended September 30, 2025 ("Q3 2025") with comparatives for the three months to September 30, 2024 ("Q3 2024"), are as follows: Revenue of $2,002,749, up 6% from $1,894,911 in Q3 2024. Recurring Licensing and hosting revenue of $911,989, up 38% from $662,321 in Q3 2024. Gross margin of 78%, compared to 74% in Q3 2024. Net income of $20,241, compared to $110,364 in Q3 2024. Adjusted EBITDA of $52,563, compared to $125,395 in Q3 2024. CEO Commentary "These results highlight the strength of our strategic shift toward scalable, recurring revenue," said Doug Vickerson, CEO of Renoworks. "Licensing and hosting revenue grew by 36% year-over-year as more of our enterprise customers adopt AI-driven solutions, replacing one-time design services with ongoing SaaS licensing. This transition is improving both our gross margins and the predictability of our revenue streams. We're seeing strong traction with customers adopting Renoworks Pro and AI-based platform features as evidenced by the recent launch of eight new enterprise visualizers for leading North American manufacturers and distributors, with 15 more scheduled by the end of Q1 2026. Based upon our current sales pipeline, including current customers, new prospects and contractors, we anticipate continued growth in our annual recurring revenue through the addition of new contractors and the expansion of our enterprise accounts. These changes are driving higher-value, long-term relationships that position Renoworks for sustainable organic growth, with a focus on profitability." Operational Highlights Revenue mix transformation: Licensing and hosting revenues now account for the majority of the Company's growth, reflecting strong adoption of Renoworks' AI-powered visualization, data and analytics, and lead-generation tools. Design Services revenue declined 6% year-over-year, consistent with the Company's strategic plan to reduce transactional services. Customer concentration improving: Revenue from the Company's largest customer decreased from 36% in YTD 2024 to 32% YTD 2025 and 28% in Q3 2025, reflecting diversification and successful transition of this key account from Design Services to AI-driven Licensing and Hosting. Investment in innovation: Continued investment in artificial intelligence, data science, and contractor-focused platform enhancements is accelerating the rollout of new features and supporting growth in Renoworks Pro and Enterprise offerings. Financial Results Summary Financial results from operations for nine months ended September 30, 2025, with comparatives for nine months ended September 30, 2024, are as follows: Nine Months Ended Sept 30 2025 2024 Revenue $6,015,564 $5,210,091 Gross Profit $4,583,505 $3,843,980 Expenses $4,470,435 $3,846,313 Net Income (Loss) $113,070 ($2,333) Adjusted EBITDA $196,921 $49,793 Weighted Shares Outstanding 40,817,968 40,664,635 Cash increase (decrease) from operations (53,005) 104,737 Financial results from operations for three months ended September 30, 2025, with comparatives for three months ended September 30, 2024, are as follows: Three Months Ended Sept 30 2025 2024 Revenue $2,002,749 $1,894,911 Gross Profit $1,553,235 $1,402,502 Expenses $1,532,994 $1,292,138 Net Income $20,241 $110,364 Adjusted EBITDA $52,563 $125,395 Weighted Shares Outstanding 40,817,968 40,664,635 Financial Position September 30, 2025 December 31, 2024 Cash Balance $1,548,953 $1,536,671 Accounts Receivable 712,314 547,746 Working Capital $275,658 ($121,451) Deferred Revenue $2,386,726 $2,519,797 Total Assets $2,820,060 $2,641,419 Long-Term Liabilities $222,174 $240,467 Deficit 9,986,659 10,099,729 Shareholder's Equity (Deficiency) 269,219 (4,362) Outlook Renoworks expects continued revenue growth driven by customer adoption of AI-powered Licensing and Hosting solutions, despite the offset from the anticipated reduction in Design Services revenue. Management remains focused on strengthening gross margins, expanding recurring revenue streams, and advancing its AI platform capabilities across both Enterprise and Pro customer segments. About Renoworks Renoworks Software Inc. develops and sells digital visualization software and integration solutions for the remodeling and new home construction industry. The Company provides solutions to manufacturers, contractors, builders, and retailers, addressing one of the home improvement industry's key challenges — helping homeowners visualize their product selections in a realistic digital environment before purchase. Renoworks generates revenues from five main business lines: Renoworks Enterprise, Renoworks PRO, Renoworks Design Services, Renoworks FastTrack, and Renoworks API. For more information, visit www.renoworks.com. *Non-IFRS Measures Adjusted EBITDA is a measure not recognized under IFRS. However, management of Renoworks believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons. Adjusted EBITDA does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Renoworks' Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Renoworks posted on SEDAR+ (www.sedarplus.ca). Forward Looking Information Certain statements in this news release, other than statements of historical fact, are forward looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the Company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. SOURCE RenoWorks Software Inc. View original content to download multimedia: http://www.newswire.ca/en/releases/archive/November2025/12/c7201.html Contact: For further information, please contact: Doug Vickerson, CEO, Phone: 403-296-3880, E-mail: [email protected]; Sean Peasgood, Investor Relations, Phone: 647-777-9597, E-mail: [email protected]