VIQ Solutions Reports Adjusted EBITDA Up 72% and 115% for the Three and Nine Months Ended September 30, 2025; Scalable Operational Architecture Integrated Into Australian Operations Expected to Contribute Over $3 Million Annually

Executive Summary

• VIQ Solutions reported Q3 2025 revenue of $10.9 M (down 1% YoY) and nine‑month revenue of $31 M, with gross margins improving to 47.8% and 49.1% respectively.
• Adjusted EBITDA surged to $1.4 M for the quarter (+72% YoY) and $3.2 M for the nine months (+115% YoY), marking the sixth consecutive quarter of positive Adjusted EBITDA and moving the company toward cash‑flow positivity.
• The company completed an insider‑led, oversubscribed private placement raising approximately $1.9 M to fund technology enhancements, customer service improvements, and future tuck‑in acquisitions.

Key Details

• Revenue: $10.9 M (Q3) vs. $11.1 M prior year; $31 M (nine months) vs. $32.6 M prior year.
• Gross Margin: 47.8% (Q3) up from 46.3%; 49.1% (nine months) up from 45.4%.
• Adjusted EBITDA: $1.4 M (Q3) ↑ 72%; $3.2 M (nine months) ↑ 115%.
• Adjusted Operating Loss: $2.0 M (Q3) vs. $1.1 M prior year; $3.5 M (nine months) vs. $3.5 M prior year (excluding $1 M restructuring charge).
• Restructuring Charge: One‑time $1 M incurred in Q3 for leadership changes and global systems integration in Australian operations.
• Leadership & Operational Changes: New interim CEO Larry Taylor; integration of proven global processes into Australian business; office closures and staff relocations to reduce overhead.
• Cost Savings Initiative: Expected annual cost reduction of $3.2 M from the Australian restructuring program.
• Delisting & Listing Change: Voluntary move from TSX to TSXV; new auditor appointed to lower expenses.
• Private Placement: Insider‑led, oversubscribed offering in Oct–Nov 2025; gross proceeds ≈ $1.9 M. Use of proceeds: customer service upgrades, technology enhancements, margin improvement, and funding of tuck‑in acquisitions.
• Major Contract Win: July 2025 secured largest SaaS engagement to date – NetScribe® deployed across 9 judicial districts and 22 counties in the U.S. Midwest, reinforcing shift to higher‑margin subscription revenue.

Notable Quotes

“Our focus is improving VIQ's corporate cost structure and on‑time delivery to our Australian customers… we are pleased with the speed and quantum of these changes which will significantly improve financial performance in 2026.” – Larry Taylor, Interim CEO

“In the first nine months of 2025, VIQ grew Adjusted EBITDA by 115%, raised gross margins to nearly 50%, and posted its sixth straight quarter of positive Adjusted EBITDA.” – Alexie Edwards, CFO

All forward‑looking statements are subject to risks and uncertainties detailed in the company’s MD&A.