SEDAR Interim Financial Statements

Evertz Technologies Limited - 1- Three month and Nine month periods ended January 31, 2026 Interim condensed consolidated financial statements of EVERTZ TECHNOLOGIES LIMITED Three month and Nine month periods ended January 31, 2026 and 2025 (Unaudited) Evertz Technologies Limited - 2- Three month and Nine month periods ended January 31, 2026 EVERTZ TECHNOLOGIES LIMITED Index to Financial Statements (Unaudited) Interim condensed consolidated financial statements Three month and Nine month periods ended January 31, 2026 and 2025 Interim Condensed Consolidated Statements of Financial Position ............................................... 4 Interim Condensed Consolidated Statements of Changes in Equity .............................................. 5 Interim Condensed Consolidated Statements of Earnings ............................................................. 6 Interim Condensed Consolidated Statements of Comprehensive Earnings .................................. 7 Interim Condensed Consolidated Statements of Cash Flows ......................................................... 8 Notes to the Interim Condensed Consolidated Financial Statements ............................................ 9-17 Evertz Technologies Limited - 3- Three month and Nine month periods ended January 31, 2026 MANAGEMENT REPORT The management of Evertz Technologies Limited (“Evertz” or the “Company”) is responsible for the preparation of the accompanying interim condensed consolidated financial statements. The interim condensed consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting, using accounting policies consistent with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and are considered by management to present fairly the consolidated financial position, operating results and cash flows of the Company. These interim condensed consolidated financial statements have not been reviewed by the auditor. These interim condensed consolidated financial statements are unaudited and include all adjustments, consisting of normal and recurring items, that management considers necessary for the fair presentation of the consolidated financial position, results of operations and cash flows. Evertz Technologies Limited - 4- Three month and Nine month periods ended January 31, 2026 EVERTZ TECHNOLOGIES LIMITED Interim Condensed Consolidated Statements of Financial Position (Unaudited) As at January 31, 2026 and April 30, 2025 (In thousands of Canadian dollars) Assets Current assets Cash and cash equivalents Trade and other receivables (note 3) Contract assets Prepaid expenses Inventories (note 4) Income tax receivable Property, plant and equipment (note 5) Right-of-use assets Goodwill Intangibles Deferred income taxes Liabilities Current liabilities Trade and other payables Provisions (note 6) Deferred revenue Current portion of lease obligations Current portion of redemption liability Long-term deferred revenue Long-term lease obligations Equity Capital stock (note 7) Share based payment reserve Accumulated other comprehensive income Retained earnings Total equity attributable to shareholders Non-controlling interest See accompanying notes to the interim condensed consolidated financial statements. 75,672 71,743 January 31, April 30, 2026 2025 24,790 $ 111,665 $ 336,823 391,313 39,819 32,211 15,831 15,568 14,028 9,677 195,418 181,011 1,649 11,084 - 346 8,1 --- 89 9,798 12,203 15,816 20,003 20,001 77,972 $ 67,982 $ 6,308 5,269 417,037 $ 469,485 $ 5,182 5,091 4,027 3,798 110,150 101,035 203,639 183,175 3,972 1,238 217,487 198,194 145,959 144,978 9,876 13,781 16,580 92,382 24,096 98,950 26,474 24,195 7,516 6,568 199,550 271,291 417,037 $ 469,485 $ 196,529 268,123 3,021 3,168 Evertz Technologies Limited - 5- Three month and Nine month periods ended January 31, 2026 EVERTZ TECHNOLOGIES LIMITED Interim Condensed Consolidated Statements of Changes in Equity (Unaudited) Nine month periods ended January 31, 2026 and 2025 (In thousands of Canadian dollars) Accumulated Total Share-based other equity Non- Capital payment comprehensive Retained attributable to controlling Total stock reserve earnings earnings shareholders interest Equity Balance at April 30, 2024 Net earnings for the period Foreign currency translation adjustment Total comprehensive earnings for the year Dividends declared - Repurchase of common shares - Issued on exercise of employee stock options - Transfer of stock options - Share based compensation expense - Balance at January 31, 2025 Balance at April 30, 2025 Net earnings for the period Foreign currency translation adjustment Total comprehensive earnings for the year Dividends declared Repurchase of common shares (note 7) Issue on exercise of employee stock options Transfer of stock options (note 7) Share based compensation expense (note 12) Balance at January 31, 2026 7,516 $ See accompanying notes to the interim condensed consolidated financial statements. 266,677 $ 3,410 $ 263,267 $ 97,103 $ 1,197 $ 19,246 $ 145,721 $ - 3,858 - - 46,388 46,388 336 46,724 - - - 3,858 45 3,903 145,959 $ 26,474 $ 16,580 $ 196,529 $ 3,021 $ 199,550 $ 145,343 $ 22,992 $ 96,216 $ 269,606 $ 3,042 $ 1,443 (1,443) - - - - - 3,722 - 3,722 - 3,722 (655) - (3,436) (4,091) - (4,091) 193 - - 193 - 193 - - $ - $ 48,825 $ 49,773 $ 404 $ 50,177 $ - - (121,191) (121,191) (551) (121,742) 948 $ - - - 948 55 1,003 948 (431) - (2,407) (2,838) - (2,838) - - 48,825 48,825 349 49,174 - 3,750 - 3,750 - 3,750 272,648 $ 271,291 $ 49 49 49 - $ - $ 46,388 $ 50,246 $ 381 $ 50,627 $ - - (44,868) (44,868) (749) (45,617) 3,858 $ 4 (4) - 24,195 $ 268,123 $ 92,382 $ 3,168 $ 144,978 $ 5,055 $ 6,568 $ - - - - - - - - - - - Evertz Technologies Limited - 6- Three month and Nine month periods ended January 31, 2026 EVERTZ TECHNOLOGIES LIMITED Interim Condensed Consolidated Statements of Earnings (Unaudited) Three month and nine month periods ended January 31, 2026 and 2025 (In thousands of Canadian dollars, except per share amounts) 2026 2025 2026 2025 Revenue (notes 13 and 14) Cost of goods sold Gross margin Expenses Selling, administrative and general (note 9) Research and development (note 10) Investment tax credits Foreign exchange loss (gain) Earnings before undernoted Finance income 531 Finance costs (421) Other income (expenses) (62) Earnings before income taxes Provision for (recovery of) income taxes Current Deferred Net earnings for the period Net earnings attributable to non-controlling interest Net earnings attributable to shareholders Net earnings for the period Earnings per share (note 16) Basic Diluted See accompanying notes to the interim condensed consolidated financial statements. 62,108 65,836 28,108 25,818 0.24 $ 0.27 $ 0.64 $ 0.60 $ 18,662 $ 21,076 $ 49,174 $ 46,724 $ 0.24 $ 0.28 $ 0.65 $ 0.61 $ 204 161 349 336 18,458 20,915 48,825 46,388 7,132 7,080 17,885 16,602 18,662 $ 21,076 $ 49,174 $ 46,724 $ 7,286 7,505 16,2 --- 07 18,381 (154) (425) 1,678 (1,779) 2,073 (1,104) 249 25,794 28,156 67,059 63,326 2,597 (1,139) (235) 38,304 37,767 113,706 113,617 55,428 50,990 162,081 157,512 (4,758) (3,529) (12,455) (10,879) 2,315 (3,895) 804 (4,677) 219,620 19,567 20,647 60,026 59,451 Three month period ended Nine month period ended January 31, January 31, 139,333 $ 136,916 $ 384,213 $ 373,818 $ 58,087 57,818 156,296 154,198 81,246 79,098 227,917 590 (281) (333) Evertz Technologies Limited - 7- Three month and Nine month periods ended January 31, 2026 EVERTZ TECHNOLOGIES LIMITED Interim Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) Three month and nine month periods ended January 31, 2026 and 2025 (In thousands of Canadian dollars) 2026 2025 2026 2025 Net earnings for the period Other comprehensive earnings : Foreign currency translation adjustment Comprehensive earnings Comprehensive earnings attributable to non-controlling interest Comprehensive earnings attributable to shareholders Comprehensive earnings See accompanying notes to the interim condensed consolidated financial statements. 17,607 $ 21,336 $ 49,773 $ 50,246 $ 17,811 $ 21,482 $ 50,177 $ 50,627 $ 17,811 $ 21,482 $ 50,177 $ 50,627 $ 204 $ 146 $ 404 $ 381 $ (851) 406 1,003 3,903 Three month period ended Nine month period ended January 31, January 31, 18,662 $ 21,076 $ 49,174 $ 46,724 $ Evertz Technologies Limited - 8- Three month and Nine month periods ended January 31, 2026 EVERTZ TECHNOLOGIES LIMITED Interim Condensed Consolidated Statements of Cash Flows (Unaudited) Three month and nine month periods ended January 31, 2026 and 2025 (In thousands of Canadian dollars) 2026 2025 2026 2025 Operating activities Net earnings for the period Add: Items not involving cash Depreciation of property, plant and equipment Amortization of right-of-use assets Amortization of intangibles Loss (gain) on disposal of property, plant and equipment Share based compensation (note 12) Interest expense Deferred income tax recovery (expense) Current tax expenses, net of investment tax credits Income taxes paid Changes in non-cash working capital items (note 11) Cash provided by operating activities Investing activities Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Cash used in investing activities Financing activities Principle payments of lease liabilities Interest paid Dividends paid Dividends paid by subsidiaries to non-controlling interests Capital stock issued Capital stock repurchased (note 11) Cash used in financing activities Effect of exchange rates on cash and cash equivalents (Decrease) increase in cash and cash equivalent Cash and cash equivalents beginning of period Cash and cash equivalents See accompanying notes to the interim condensed consolidated financial statements. 1,324 1,285 3,830 3,770 Three month period ended Nine month period ended January 31, January 31, 18,662 $ 21,076 $ 49,174 $ 46,724 $ 2,204 2,508 7,172 7,759 13 (15) (412) (60) - 207 346 612 503 - 2,173 (1,530) 24,887 26,774 67,313 61,952 1,739 1,315 3,722 3,750 442 398 1,308 927 3,660 24,794 (5,126) 3,147 29,291 52,975 57,806 65,605 3,740 3,583 4,964 7,299 (2,996) (2,176) (9,345) (6,793) (7,011) (1,153) (13,887) (4,596) (7,011) (1,177) (14,760) (4,685) - 24 873 89 (222) (242) (1,079) (759) (91,013) (15,188) (121,191) (44,868) (1,116) (1,229) (3,322) (3,540) (104) (753) 1,651 (226) (174) (551) (749) - (386) (4,091) (2,838) 193 49 49 193 (92,384) (17,170) (130,041) ( --- 52,705) (1,801) 24,790 $ 96,280 $ 24,790 $ 96,280 $ (71,905) 34,551 (86,875) 9,955 96,695 61,729 111,665 86,325 Evertz Technologies Limited - 9- Three month and Nine month periods ended January 31, 2026 EVERTZ TECHNOLOGIES LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Three month and Nine month periods ended January 31, 2026 (in thousands of Canadian dollars, except for “number of common shares”, “number of options” and “per share” information) Evertz Technologies Limited (“Evertz” or the “Company”) is incorporated under the Canada Business Corporations Act. The Company is incorporated and domiciled in Canada and the registered head office is located at 5292 John Lucas Drive, Burlington, Ontario, Canada. The Company is a leading supplier of software, equipment and technology solutions to the television broadcast, telecommunications, professional audio-visual, government, military, enterprise, and new media sectors. The Company designs, manufactures and distributes video and audio infrastructure solutions for the production, post–production, broadcast and telecommunications markets. 1. STATEMENT OF COMPLIANCE These interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 “Interim Financial Reporting” as issued by the International Accounting Standards Board ("IASB") and using the same accounting policies as described in the Company’s consolidated financial statements for the year ended April 30, 2025. These interim condensed consolidated financial statements do not include all information and note disclosures required by IFRS for annual financial statements, and therefore; should be read in conjunction with the April 30, 2025 annual consolidated financial statements. These interim condensed consolidated financial statements were authorized for issue by the Board of Directors on March 4, 2026. 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Measurement These financial statements have been prepared on the historical cost basis except for certain financial assets and liabilities which are stated at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets. Functional and Presentation Currency These financial statements are presented in Canadian dollars, which is the Company’s group functional currency. Each subsidiary of the Company determines its own functional currency based on the primary economic environment in which the subsidiary operates. All financial information presented in Canadian dollars has been rounded to the nearest thousand, except per share amounts. Basis of Consolidation These financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has power over an entity, has exposure or rights to variable returns from its involvement with the entity and has the ability to use its power over the entity to affect the amount of the investor’s returns. The results of subsidiaries acquired or disposed of are included in the consolidated statements of earnings and comprehensive earnings from the effective date of acquisition of control and up to the effective date of disposal of Evertz Technologies Limited - 10- Three month and Nine month periods ended January 31, 2026 Note 2 continued… control, as appropriate. Total comprehensive earnings of subsidiaries are attributed to the own --- ers of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. All intra-Company transactions, balances, income and expenses are eliminated in full on consolidation. Critical Accounting Estimates and Judgements The preparation of the Company’s interim condensed financial statements requires management to make estimates, assumptions and judgements that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues, and expenses. Significant estimates and judgements used in preparation of the interim condensed consolidated financial statements are described in the Company’s consolidated financial statements for the year ended April 30, 2025. Changes in Accounting Policies Amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates Effective May, 1, 2025, the Company adopted amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates. Amendments made to IAS21, The Effects of Changes in Foreign Exchange Rates was issued by the IASB in August 2023 and provide guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not. The adoption of the amendments did not have a material impact on the interim consolidated financial statements of the Company. New and Revised IFRSs Issued but Not Yet Effective The following is a list of amendments, revisions and new International Financial Reporting Standards issued but not yet effective. Unless otherwise indicated, earlier application is permitted. Presentation and Disclosure in Financial Statements IFRS 18, Presentation and Disclosure in Financial Statements issues was issued by the IASB in April 2024 and replaces IAS 1, Presentation of Financial Statements. The standard is effective for reporting periods beginning on or after January 1, 2027. The Company has not yet determined the impact of the standard. Disclosure in Subsidiaries without Public Accountability IFRS 19, Subsidiaries without Public Accountability: Disclosures was issued by the IASB in May 2024 and reduces disclosure requirements within the consolidated financial statements relating to eligible subsidiaries of the Company. The standard is effective for reporting periods beginning on or after January 1, 2027. The Company does not expect a material impact on the consolidated financial statements of the Company as a result of the amendment but has not yet finalized the analysis. Amendments to the Classification and Measurement of Financial Instruments IFRS 9, Financial Instruments was amended by the IASB in May 2024. This amendment focuses on clarifying classification and measurement of financial instruments. This standard is effective for reporting periods beginning or after January 1, 2026. The Company has not yet determined the impact of the standard. Evertz Technologies Limited - 11- Three month and Nine month periods ended January 31, 2026 3. TRADE AND OTHER RECEIVABLES Trade receivables, net of allowances Other receivables 2,669 2,590 75,672 $ 71,743 $ January 31, 2026 April 30, 2025 73,003 $ 69,153 $ 4. INVENTORIES January 31, 2026 April 30, 2025 Finished goods Raw material and supplies Work in progress 195,418 $ 181,011 $ 52,996 $ 51,295 $ 103,312 95,084 39,110 34,632 Cost of sales for the quarter ended January 31, 2026, included $51,005 of inventory (2025 - $49,855) and $3,650 of inventory write-offs (2025 – 3,335). Cost of sales for the nine-month period e --- nded January 31, 2026, included $135,743 of inventory (2025 - $128,359) and $3,729 of inventory write-offs (2025 – 6,051) 5. PROPERTY, PLANT AND EQUIPMENT Cost Accumulated Depreciation Carrying Amount Cost Office furniture and equipment Research and development equipment Airplanes Machinery and equipment Leaseholds Land Buildings 32,211 $ 14,480 4,069 10,411 11,555 4,092 7,463 161,778 $ 121,959 $ 39,819 $ 156,301 $ 124,090 $ 2,262 12,270 8,939 3,331 10,723 8,318 2,405 2,845 - 2,845 2,262 - 11,456 6,276 1,707 4,569 10,490 9,831 659 79,656 69,343 10,313 77,620 66,164 6,442 January 31, 2026 April 30, 2025 5,344 $ 4,251 $ 1,093 $ 5,614 $ 4,090 $ 1,524 $ 40,907 33,650 7,257 38,037 31,595 Carrying Amount Accumulated Depreciation 6. PROVISIONS Warranty and Lease/Retirement Returns Obligations Total Balance as at April 30, 2025 Net (reductions) additions Foreign exchange differences Balance as at January 31, 2026 4,780 $ 489 $ 5,269 $ 1,004 - 1,004 30 5 35 5,814 $ 494 $ 6,308 $ Warranty and Returns The provision relates to estimated future costs associated with standard warranty repairs and returns on hardware solutions. The provision is based on historical data associated with similar products. The majority of warranties and returns are expected to be incurred within the next twelve months. Lease/Retirement Obligations The provision relates to estimated restoration costs expected to be incurred upon the conclusion of Company leases. Evertz Technologies Limited - 12- Three month and Nine month periods ended January 31, 2026 7. CAPITAL STOCK Authorized capital stock consists of: Unlimited number of preferred shares Unlimited number of common shares Number of Amount Common Shares Balance as at April 30, 2025 Cancelled pursuant to NCIB Issued on Exercise of Stock Options Issued on Exercise of RSU - Transfer on Exercise of Stock Options 23 Transfer on Exercise of RSU Balance as at January 31, 2026 75,528,850 145,959 $ 75,750,235 144,978 $ (343,335) (655) 1,420 - 193 15,000 106,950 - Dividends Per Share During the quarter, $1.205 in dividends per share were declared, including a special dividend of $1.00 (2025 – quarterly dividend of $0.20 and no special dividend). Normal Course Issuer Bid In November 2023, the Company entered into a new NCIB with the TSX to repurchase, at the Company’s discretion, until November 2024 up to 3,802,024 outstanding common shares on the open market or as otherwise permitted, subject to normal terms and limitations of such bids. In November 2024, the Company renewed their NCIB with the TSX to repurchase, at the Company’s discretion, up to 3,797,308 outstanding common shares on the open market, or as otherwise permitted until November 26, 2025. During the nine month period, the Company purchased and cancelled 343,335 common shares, at a weighted average price of $11.92 (2025- $227,315 with a weighted average price of $12.50) and during the three month period, no common shares were purchased and canceled (2025 – 31,919 at a weighted average price of $12.08). In December 2025, the Company renewed their NCIB with the TSX to repurchase, at the Company’s discretion, up to 3,774,227 outstanding common shares on the open market, or as otherwise permitted until December 10, 2026. During the three and nine month period the Company didn’t purchase or cancel shares under the renewed NCIB. 8. CREDIT FACILITIES The Company has a credit facility of $75 million and a treasury risk management facility up to $10 million available, bearing --- interest at prime, subject to certain covenants and secured by all Canadian based assets. As at January 31, 2026, and April 30, 2025, the Company was in compliance with covenants. There were no borrowings against the facilities as at January 31, 2026, or April 30, 2025. 9. SELLING, ADMINISTRATIVE AND GENERAL EXPENSES 2026 2025 2026 2025 Salaries and benefits Other selling and administrative Share based compensation (note 12) Depreciation Amortization of intangibles Three month period ended Nine month period ended January 31, January 31, 9,614 $ 10,678 $ 28,580 $ 31,080 $ 8,982 8,520 27,742 24,094 797 1,112 2,986 3,289 174 372 131 376 - 206 346 612 19,567 $ 20,647 $ 60,026 $ 59,451 $ Evertz Technologies Limited - 13- Three month and Nine month periods ended January 31, 2026 10. RESEARCH AND DEVELOPMENT 2026 2025 2026 2025 Salaries and benefits Other research and development Share based compensation (note 12) Depreciation 38,304 $ 37,767 $ 113,706 $ 113,617 $ 1,565 1,183 3,349 3,380 757 817 2,274 2,603 Three month period ended Nine month period ended January 31, January 31, 10,141 9,417 28,458 27,515 25,841 $ 26,350 $ 79,625 $ 80,119 $ 11. STATEMENT OF CASH FLOWS Changes in non–cash working capital items 2026 2025 2026 2025 Trade and other receivables Contract assets Inventories Prepaid expenses Trade and other payables Deferred revenue Provisions Net cash provided by (used in) Three month period ended Nine month period ended January 31, January 31, (4,769) $ (3,698) $ (3,929) $ 7,738 $ 3,696 1,839 (263) (1,855) (12,722) 11,037 (14,407) 11,037 (2,739) 2,412 (4,351) 3,134 10,205 7,362 4,936 837 3,660 $ 24,794 $ (5,126) $ 3,147 $ 9,403 5,801 11,849 (17,957) 586 41 1,039 213 12. SHARE BASED PAYMENTS Stock Option Plan The Company established, in June 2006, a stock option plan to attract, retain, motivate and compensate employees, officers and eligible directors who are integral to the growth and success of the Company. A number of shares equal to 10% of the Company’s outstanding common shares are to be reserved for issuance under the stock option plan. The Board of Directors administers the stock option plan and will determine the terms of any options granted. The exercise price of an option is to be set by the Board of Directors at the time of grant but shall not be lower than the market price as defined in the option plan at the time of grant. The term of the option cannot exceed 10 years. Stock options are currently granted normally fully vest and expire by the end of the fifth to sixth year. The changes in the number of outstanding share options are as follows: Number of Weighted Options Average Exercise Price Balance as at April 30, 2025 Granted 1,030,000 Forfeited (1,000) Expired (3,129,225) Exercised (15,000) Balance as at January 31, 2026 1,130,000 12.86 13.39 $ 3,245,225 12.40 $ 13.32 12.28 12.35 Evertz Technologies Limited - 14- Three month and Nine month periods ended January 31, 2026 Note 12 continued... Stock options outstanding as at January 31, 2026 are: Exercise Price Weighted Average Exercise Price Number of Outstanding Options Weighted Average Remaining Contractual Life Number of Options Exercisable Weighted Average Exercise Price of Exercisable Options $13.32 $14.07 Totals 13.32 $ 1,030,000 5.3 - - $ 14.07 $ 100,000 0.2 80,000 14.07 $ 13.39 $ 1,130,000 4.9 80,000 14.07 $ Restricted Share Unit Plan (2022 Plan) The Company established, in June 2022, a new restricted share unit plan (RSU-2022). The purpose of the plan is to p --- rovide an incentive to participants; including key executives of the Company, by rewarding such participants with equity-based compensation. Under the terms of the plan, the Company will redeem RSUs granted to a participant under the 2022 Plan through the issuance of one Common Share of the Company for each fully vested RSU. The Board of Directors administers the equity based restricted share unit plan and will determine the terms of any restricted share units granted. Restricted share units currently granted normally fully vest and expire by the end of the fifth year. A number of restricted share units equal to 10% of the Company’s outstanding common shares are to be reserved for issuance under the equity based restricted share unit plan, less the aggregate number of stock options granted under the Stock Option Plan described above. The changes in the number of outstanding RSUs under the 2022 Plan are as follows: Balance as at April 30, 2025 Exercised Granted Balance as at January 31, 2026 Number of RSUs (2022 Plan) 1,632,250 (106,950) 3,320,300 1,795,000 As at January 31, 2026 the average remaining contractual life for outstanding RSUs under the 2022 Plan is 2.8 years (2025 – 2.0 years). Compensation expense Stock Option Plan The share based compensation expense that has been charged against earnings over the nine month and three month period is $65 (2025 - $164) and $31 (2025 – $43). Compensation expense on grants are calculated using the Black- Scholes option pricing model. Grants in the current period were calculated with the following assumptions: Risk-free interest rate Dividend yield Expected life Expected volatility Weighed average grant-date fair value 5.42 years 25% Nine month period ended January 31, 2026 3.01% $13.32 6.16% Evertz Technologies Limited - 15- Three month and Nine month periods ended January 31, 2026 Note 12 continued... Expected volatility is based on historical share price volatility over the past five years of the Company. Share based compensation expense was calculated using a weighted average forfeiture rate of 16% (2025 – 24%). Restricted Share Unit Plan (2022 Plan) The share base compensation expense that has been charged against earnings over the nine month and three month period is $3,657 and $1,709 respectively (2025 - $3,586 and $1,272 respectively). Compensation expense on grants during the year was calculated using the fair value of the Company’s share price at the grant date. Share based compensation expense was calculated using a weighted average forfeiture rate of 11% (2025 – 11%). 13. SEGMENTED INFORMATION The Company reviewed its operations and determined that it operates a single reportable segment, the television broadcast equipment market. The single reportable operating segment derives its revenues from the sale of hardware and software solutions including related services, training and commissioning. Revenue 2026 2025 2026 2025 United States International Canada 139,333 $ 136,916 $ 384,213 $ 373,818 $ 43,695 37,845 110,615 105,933 6,799 4,347 13,685 13,050 Three month period ended Nine month period ended January 31, January 31, 88,839 $ 94,724 $ 259,913 $ 254,835 $ January 31, 2026 Property, Plant and Equipment Goodwill Right-of-Use Assets United States International Canada 12,771 $ 1,378 $ 1,917 $ 39,819 $ 20,003 $ 12,203 $ 9,733 18,625 2,625 17,315 - 7,661 Property, Plant and Equipment Goodwill Intangible Assets Right-of-Use Assets United States International Canada April 30, 2025 3,274 --- $ 1,408 $ - $ 2,454 $ 32,211 $ 20,001 $ 346 $ 15,816 $ 10,022 18,593 346 2,900 18,915 - - 10,462 Evertz Technologies Limited - 16- Three month and Nine month periods ended January 31, 2026 14. REVENUE 2026 2025 2026 2025 Hardware 76,787 $ 81,199 $ 209,303 $ 207,387 $ Reoccurring software, services and other software 62,546 55,717 174,910 166,431 139,333 136,916 $ 384,213 373,818 $ January 31, January 31, Three month period ended Nine month period ended During the nine and three month periods, the Company recognized $63,211 and $20,569 respectively in revenue over time (2025 - $59,396 and $19,790), and $321,002 and $118,764 respectively in revenue at a point in time (2025 - $314,922 and $117,126). 15. RELATED PARTY TRANSACTIONS Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Company and other related parties are disclosed below. Related Party Transactions Two shareholders each indirectly hold a 16% interest in the Company’s leased premises in Ontario. This lease expires in 2029 with a total of $3,489 committed over the remaining term. During the nine month and three month period, rent paid for the leased principal premises amounted to $833 (2025 - $810) and $277 (2025 - $270) with no outstanding amounts due as at January 31, 2026. On December 1, 2008 the Company entered into a property lease agreement where two shareholders each indirectly hold a 20% interest in the Company’s leased premises in Ontario. This lease expires in 2028 with a total of $2,654 committed over the remaining term. During the nine month and three month periods, rent paid for the leased principal premises amounted to $689 (2025 – $613) and $230 (2025 - $230) with no outstanding amounts due as at January 31, 2026. On May 1, 2019 the Company entered into a property lease agreement where two shareholders each indirectly hold a 35% interest. This lease expires in 2029 with a total of $1,861 committed over the remaining term. During the nine month and three month periods, rent paid for the leased principal premises amounted to $421 (2025 – $408) and $140 (2025 - $136) with no outstanding amounts due as at January 31, 2026. On May 1, 2016 the Company entered into a property lease agreement where two shareholders each hold a 46.6% interest. This lease expires in 2026 with a total of $341 committed over the remaining term. During the nine month and three month periods, rent paid for the leased principal premises amounted to $769 (2025 – $769) and $256 (2025 - $256) with no outstanding amounts due as at January 31, 2026. The Company also leases properties where two shareholders indirectly own 100% interest. There were no amounts owing on the leases as at January 31, 2026. The term of these leases are as follows: Lease Commencement Amount committed over Date Lease Expiry Date remaining term ending Jan. 31, 2026 ending Jan. 31, 2025 October 2021 September 2026 215 $ 238 $ 231 $ December 2023 November 2028 990 $ 222 $ 205 $ August 2016 July 2026 142 $ 213 $ 210 $ For Nine Months For Nine Months These transactions were in the normal course of business and entered into at their respective fair values. Evertz Technologies Limited - 17- Three month and Nine month periods ended January 31, 2026 16. EARNINGS PER SHARE 2026 2025 2026 2025 Weighted average common shares outstanding Dilutive effect of stock options Di --- luted weighted average common shares outstanding Three month period ended Nine month period ended January 31, 2026 January 31, 2026 75,506,700 75,940,906 75,498,904 76,045,953 1,172,560 919,274 1,207,135 973,945 76,679,260 76,860,180 76,706,039 77,019,898 The weighted average number of diluted common shares excludes 1,130,000 options because they were anti-dilutive during the period (2025 – 647,000). 17. SUBSEQUENT EVENT On March 4, 2026, the Company declared a quarterly dividend of $0.205 with a record date of March 13, 2026 and a payment date of March 20, 2026.