Westaim Reports Q3 2025 Results for the Quarter Ended September 30, 2025

Executive Summary

• Westaim reported a net loss attributable to controlling interests of $11.7 million ($0.35 diluted loss per share) for Q3 2025, a sharp increase from the $1.2 million loss in Q3 2024.
• The Insurance segment (Ceres) posted an Adjusted EBITDA loss of $9.4 million, while the Asset Management segment (Arena) recorded an Adjusted EBITDA loss of $2.3 million.
• Significant restructuring actions—including a $0.7 million severance expense and planned closure of the Singapore office—are expected to generate $9.0 million in annualized run‑rate savings.

Key Details

• Financial Highlights (US$ millions) – Q3 2025 vs. Q3 2024:
• Total Revenue: $14.0 vs. $2.1
• Net loss attributable to controlling interests: $(11.7) vs. $(1.2)
• Adjusted EBITDA (Consolidated): $(12.3) vs. $0 (no comparable figure)
• Segment Results:
• Insurance (Ceres) – Revenue $12.9; Adjusted EBITDA loss $9.4; platform build‑out expenses $1.9 M; regulatory approvals in 45 states plus D.C.; MYGA distribution launched Sep 2025; Fixed Index Annuities to launch early 2026.
• Asset Management (Arena) – Revenue $0.5; Adjusted EBITDA loss $2.3; AUM $4.5 B (up from $3.4 B); fee‑paying AUM $2.7 B (incl. $0.3 B from Insurance).
• Corporate – Adjusted EBITDA loss $0.6; driven by salaries & benefits ($1.7 M) and professional fees ($1.7 M), partially offset by share‑based compensation recovery ($1.8 M) and interest income ($1.4 M).
• Restructuring & Savings:
• Severance expense of $0.7 M incurred; expected annualized run‑rate savings of $4.1 M from Singapore office closure.
• Additional $0.9 M annualized savings identified from winding down QCG and QSA businesses (decision made Nov 2025).
• Cumulative run‑rate savings to date: $9.0 M.
• Shareholder Equity & Valuation:
• Consolidated shareholders’ equity attributable to controlling interests: $671.3 M at Sep 30 2025.
• Common shares outstanding: 33,382,104; book value per fully diluted share: $20.11 (C$27.99), down from $22.88 (C$32.90) at Dec 31 2024.
• Strategic Transaction Impact:
• April 3 2025 transaction with CC Capital transformed Westaim from an investment entity to an operating entity; reduced book value per fully diluted share by $1.48 (C$2.06).
• Non‑GAAP Measures: Adjusted EBITDA introduced post‑strategic transaction; book value per fully diluted share disclosed as a non‑GAAP metric.

Notable Quotes

“We expect the fourth quarter to bring added focus, development and scale of the platform as we continue to execute on our business plan,” – Cameron MacDonald, President & CEO.

“We are excited to see the progress of our business plan for both Ceres and Arena…hard at work to execute on the significant opportunities ahead of us,” – Chinh Chu, Executive Chairman.