Caldwell Reports Fourth Quarter and Full Year Results and Increases Dividend

TORONTO, ON / ACCESS Newswire / November 20, 2025 / Talent acquisition firm The Caldwell Partners International Inc. (TSX:CWL)(OTCQX:CWLPF) today issued its financial results for the fourth quarter of fiscal 2025, ended August 31, 2025. All references to quarters or years are for the fiscal periods unless otherwise noted and all currency amounts are in Canadian dollars. Financial Highlights (in $000s except per share amounts) Three Months Ended Twelve Months Ended 08.31.25 08.31.24 08.31.25 08.31.24 Professional fees - Caldwell 27,662 19,157 91,251 74,669 Professional fees - IQTalent1 3,714 2,894 12,004 11,643 Consolidated professional fees 31,376 22,051 103,255 86,312 Direct expense reimbursements 232 182 802 839 Revenues 31,608 22,233 104,057 87,151 Cost of sales 24,512 17,522 81,044 68,620 Reimbursed direct expenses 232 182 802 839 Gross profit 6,864 4,529 22,211 17,692 Selling, general and administrative expenses2 4,347 4,458 18,364 18,612 Other expense (income)3,4 - - 112 (7,979 ) Operating profit 2,517 71 3,735 7,059 Finance expenses 118 278 3 810 Earnings (loss) before tax 2,399 (207 ) 3,732 6,249 Income tax expense 932 264 1,170 2,061 Net earnings (loss) after tax 1,467 (471 ) 2,562 4,188 Basic earnings (loss) per share $ 0.050 $ (0.016 ) $ 0.087 $ 0.142 Basic earnings (loss) per share adjusted for other expense (income)5 $ 0.050 $ (0.016 ) $ 0.089 (0.039 ) Professional fees of IQTalent are presented net of elimination of intercompany revenue. Selling, general and administrative expenses include a benefit of $121 related to share-based compensation as a result of share price decrease in the current quarter, compared to an expense of $211 in the same quarter last year. Other expense of $112 primarily reflects separation costs of $275 related to management staff reductions at IQTalent and a net loss of $324 associated with the sublease of the Caldwell's Toronto office space. These expenses were partially offset by Caldwell's $487 benefit from the Employee Retention Tax Credit (ERTC), established by the U.S. government under the CARES Act. Restructuring income of $7,979 in the first quarter of the prior year includes separation expense of $1,089 for management staff reductions at IQTalent, more than offset by a net gain on lease termination of $9,068 as IQTalent negotiated a termination of its Nashville leased facility resulting in a recovery of lease impairment charges expensed in the fourth quarter of the prior year. Non-GAAP measure calculated by excluding tax-adjusted restructuring income from net earnings after tax and dividing by the number of shares outstanding at the end of the period. This measure allows for enhanced comparability of the current quarter results compared to the same quarter last year. See the following page for the calculation. "Fiscal 2025 marked a strong return to growth for Caldwell and IQTalent," said Chris Beck, chief executive officer. "After two years of volatility and suppressed hiring demand, we saw a resilient rebound in both revenue and profitability, capped by an especially strong fourth quarter. Despite ongoing economic and geopolitical uncertainties, we saw leaders come off the sidelines in the second half of the year. Organizations recognized that delaying decisions carries greater risk than acting decisively, and that shift in sentiment drove increased hiring activity." "At Caldwell, professional fees were up 44% in the current quarter compared to the prior year, reflecting both higher partner productivity and increased client activity, Beck continued. "Our momentum heading into fiscal 2026 is significantly stronger than a year ago, and we're optimistic about the market and our position within it. We have hired additional new partners and continue to engage with high-calibre professionals who align with our strategy of being a high-performing, elite executive search firm. IQTalent also delivered meaningful improvement in the fourth quarter, with revenue up 28% and a return to profitability. The team's focus on cost discipline and client engagement has strengthened our operating model, giving us greater flexibility and a solid foundation to drive continued profitable performance." Beck added: "Across both brands, we're focused on growth, operational efficiency, and a disciplined capital allocation strategy to provide returns to our shareholders. We're confident in our ability to deliver state-of-the-art talent solutions to our clients and sustained value for our investors." Reflecting the company's confidence in its business outlook and cash-flow strength, the Board of Directors has increased the quarterly dividend to 1.0 cent per Common Share, a 300% increase from the prior quarterly dividend of 0.25 cents per Common Share. The dividend will be payable on December 19, 2025, to shareholders of record on December 1, 2025. In addition to the dividend increase, the company intends to remain active in the market under its Normal Course Issuer Bid, continuing to repurchase shares as part of its ongoing capital allocation strategy to enhance shareholder value. About Caldwell Partners Caldwell Partners is a technology-powered talent acquisition firm specializing in recruitment at all levels. Through two distinct brands - Caldwell and IQTalent - the firm leverages the latest innovations in AI to offer an integrated spectrum of services delivered by teams with deep knowledge in their respective areas. Services include candidate research and sourcing through to full recruitment at the professional, executive and board levels, as well as a suite of talent strategy and assessment tools that can help clients hire the right people, then manage and inspire them to achieve maximum business results. Caldwell Partners' common shares are listed on The Toronto Stock Exchange (TSX: CWL) and trade on the OTCQX Market (OTCQX: CWLPF). Please visit our website at www.caldwell.com for further information. Adjusted Earnings Per Share (EPS) The table below reconciles adjusted EPS, which is a non-GAAP financial measure, to our reported net earnings after tax. Other (income)/ expense was $nil for the fourth quarter of fiscal 2025 and fiscal 2024. As a result, adjusted EPS was the same as reported EPS for the period. Twelve months ended 08.31.25 08.31.24 Net earnings after tax (reported) 2,562 4,188 Less: After-tax other expense (income)1 77 (5,347 ) Adjusted profit 2,639 (1,159 ) Weighted average number of common shares outstanding 29,533,945 29,558,932 Basic profit(loss) per share adjusted for other expense(income) $ 0.089 $ (0.039 ) Calculated by applying Consolidated Caldwell's effective tax rate Twelve months ended 08.31.25 Twelve months ended 08.31.24 Other expense (income) 112 (7,979) Adjustment: After tax other expense(income) 35 (2,632) After tax other expense(income) 77 (5,347) Tax rate 31.3 33.0 Forward-Looking Statements Forward-looking statements in this document are based on current expectations subject to the significant risks and uncertainties cited. These forward-looking statements generally can be identified by the use of statements that include phrases such as "believe," "expect," "anticipate," "intend," "plan," "foresee," "may," "will," "likely," "estimates," "potential," "continue" or other similar words or phrases. Similarly, statements that describe our objectives, plans or goals also are forward-looking statements. We are subject to many factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statement including, but not limited to, the impact of pandemic diseases, our ability to attract and retain key personnel; exposure to our partners taking our clients with them to another firm; the performance of the US, Canadian and international economies; risks related to deposit-taking institutions; foreign currency exchange rate fluctuations; competition from other companies directly or indirectly engaged in talent acquisition; cybersecurity requirements, vulnerabilities, threats and attacks; damage to our brand reputation; our ability to align our cost structure to changes in our revenue; liability risk in the services we perform; potential legal liability from clients, employees and candidates for employment; reliance on software that we license from third parties; reliance on third-party contractors for talent acquisition support; the classification of third-party labour as contractors versus employee relationships; our ability to successfully recover from a disaster or other business continuity issues; adverse governmental and tax law rulings; successfully integrating or realizing the expected benefits from our acquisitions, adverse operating issues from acquired businesses; volatility of the market price and trading volume of our common shares; technological advances may significantly disrupt the labour market and weaken demand for human capital at a rapid rate; affiliation agreements may fail to renew or affiliates may be acquired; the impact on profitability from marketable securities valuation fluctuations; increasing dependence on third parties for the execution of critical functions; our ability to generate sufficient cash flow from operations to support our growth and fund any dividends; potential impairment of our acquired goodwill and intangible assets; and disruption as a result of actions of certain stockholders or potential acquirers of the Company. For more information on the factors that could affect the outcome of forward-looking statements, refer to the "Risk Factors" section of our Annual Information Form and other public filings (copies of which may be obtained at www.sedar.com). These factors should be considered carefully, and the reader should not place undue reliance on forward-looking statements. Although any forward-looking statements are based on what management currently believes to be reasonable assumptions, we cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements. Management's assumptions may prove to be incorrect. Except as required by Canadian securities laws, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf; such statements speak only as of the date made. The forward-looking statements included herein are expressly qualified in their entirety by this cautionary language. For further information, please contact: Investors: Shreya Lathia, Vice President and Chief Financial Officer [email protected] +1 (416) 934-2241 Media: Caroline Lomot, Vice President, Marketing & Communications [email protected] +1 (516) 830-3535 THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION ($000s Canadian) As at 'August 31 As at 'August 31 2025 2024 Assets Current Assets Cash and cash equivalents 16,436 19,634 Term Deposits 4,123 - Accounts receivable 18,637 12,664 Income taxes receivable 159 177 Unbilled revenue 9,248 5,859 Finance lease receivable 323 - Prepaid expenses and other assets 3,568 2,327 52,494 40,661 Non-current assets Prepaid expenses and other assets 312 276 Investments 1,601 1,682 Advances 1,028 904 Deferred income taxes 6,624 6,851 Property and equipment 1,131 1,698 Right-of-use assets 4,623 5,406 Finance lease receivable 1,562 - Intangible assets 34 88 Goodwill 11,357 11,186 Total Assets 80,766 68,752 Liabilities Current liabilities Accounts payable 3,263 3,409 Dividend payable 74 - Deferred Revenue 3,846 - Compensation payable 30,771 26,023 Lease liability 1,731 1,644 39,685 31,076 Non-Current liabilities Compensation payable 671 692 Lease liability 5,438 4,858 45,794 36,626 Equity attributable to owners of the Company Share capital 15,346 15,392 Contributed surplus 15,770 15,541 Treasury shares (2 ) - Accumulated other comprehensive income 2,201 1,802 Retained Earnings (Deficit) 1,657 (609 ) Total equity 34,972 32,126 Total liabilities and equity 80,766 68,752 THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF EARNINGS ($000s Canadian, except per share amounts) Twelve months ended 31-Aug-25 31-Aug-24 Revenues Professional fees 103,255 86,312 Direct expense reimbursements 802 839 104,057 87,151 Cost of sales expenses Cost of sales 81,044 68,620 Reimbursed direct expenses 802 839 81,846 69,459 Gross Profit 22,211 17,692 Selling, general and administrative 18,364 18,612 Other expense/(income) 112 (7,979 ) 18,476 10,633 Operating Profit 3,735 7,059 Finance expense (income) Interest expense on lease liability 388 715 Investment and other income (396 ) (133 ) Foreign exchange loss 11 228 Earnings before income tax 3,732 6,249 Income tax expense 1,170 2,061 Net earnings for the period attributable to owners of the Company 2,562 4,188 Earnings per share Basic $ 0.087 $ 0.142 Diluted $ 0.086 $ 0.141 CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS (unaudited - in $000s Canadian) Twelve months ended 31-Aug-25 31-Aug-24 Net earnings for the period 2,562 4,188 Other comprehensive income (loss): Items that may be reclassified subsequently to net earnings (Loss) gain on marketable securities (1 ) 35 Cumulative translation adjustment 400 (80 ) Comprehensive earnings for the period attributable to owners of the company 2,961 4,143 THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY ($000s Canadian) Accumulated Other Comprehensive Income (Loss) Retained Earnings (Deficit) Share Capital Contributed Surplus Treasury Shares Cumulative Translation Adjustment (Loss)Gain on Marketable Securities Total Equity Balance - August 31, 2023 (4,797 ) 15,392 15,282 - 1,886 (39 ) 27,724 Net earnings for the year months ended August 31, 2024 4,188 - - - - - 4,188 Share-based payment expense - - 259 - - - 259 Gain on marketable securities available for sale - - - - - 35 35 Change in cumulative translation adjustment - - - - (80 ) - (80 ) Balance - August 31, 2024 (609 ) 15,392 15,541 - 1,806 (4 ) 32,126 Balance - August 31, 2024 (609 ) 15,392 15,541 - 1,806 (4 ) 32,126 Net earnings for the year months ended August 31, 2025 2,562 - - - - - 2,562 Share-based payment expense - - 259 - - - 259 Dividend payments declared (296 ) - - - - (296 ) Loss on marketable securities available for sale - - - - - (1 ) (1 ) Shares Cancelled - (46 ) (30 ) - - (76 ) Treasury Shares - - - (2 ) - - (2 ) Change in cumulative translation adjustment - - - - 400 - 400 Balance - August 31, 2025 1,657 15,346 15,770 (2 ) 2,206 (5 ) 34,972 THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF CASH FLOW ($000s Canadian) Twelve months ended August 31, 2025 August 31, 2024 Cash flow provided by (used in) Operating activities Net earnings for the period 2,562 4,188 Add (deduct) items not affecting cash Depreciation of property and equipment 414 428 Depreciation of right-of-use assets 1,316 1,586 Amortization of intangible assets 56 55 Amortization of advances 800 643 Interest expense on lease liabilities 388 715 Share based payment expense 259 259 Gain on unrealized foreign exchange on subsidiary loans (44 ) (34 ) Gain related to equity securities obtained through search activities - (28 ) Losses related to equity accounted associate 113 412 Impairment of fixed assets 560 - Net gain on recognition of finance lease receivable (381 ) - Net gain on lease modification - (7,741 ) Changes in working capital (2,414 ) 749 Net cash generated from operating activities 3,629 1,232 Investing activities Purchase of property and equipment (391 ) (460 ) Payment of advances (1,386 ) (1,210 ) Repayment of advances 1,068 - Sale of marketable securities - 68 Purchase of term deposits (4,123 ) - Purchase of marketable securities - (64 ) Net cash used in investing activities (4,832 ) (1,666 ) Financing activities Payment of lease liabilities (1,766 ) (1,930 ) Payment of dividends (222 ) - Purchase of treasury shares (78 ) - Sublease payments received - 16 Net cash used in financing activities (2,066 ) (1,914 ) Effect of exchange rate changes on cash and cash equivalents 71 (71 ) Net decrease in cash and cash equivalents (3,198 ) (2,419 ) Cash and cash equivalents, beginning of year 19,634 22,053 Cash and cash equivalents, end of period 16,436 19,634 SOURCE: Caldwell Partners International, Inc. 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