Caldwell Reports Second Quarter Results

TORONTO, ON / ACCESS Newswire / April 9, 2026 / Talent acquisition firm The Caldwell Partners International Inc. (TSX:CWL)(OTCQX:CWLPF) today issued its financial results for the second quarter of fiscal 2026, ended February 28, 2026. 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 Six Months Ended 02.28.26 02.28.25 02.28.26 02.28.25 Professional fees - Caldwell 24,622 20,190 50,696 38,579 Professional fees - IQTalent1 2,446 2,797 5,423 5,563 Consolidated professional fees 27,068 22,987 56,119 44,142 Direct expense reimbursements 229 171 459 376 Revenues 27,297 23,158 56,578 44,518 Cost of sales 21,033 18,187 44,173 35,130 Reimbursed direct expenses 229 171 459 376 Gross profit 6,035 4,800 11,946 9,012 Selling, general and administrative expenses2 5,264 5,449 10,319 9,642 Operating profit (loss) 771 (649 ) 1,627 (630 ) Finance expenses (income) 475 (354 ) 219 (840 ) Earnings (loss) before tax 296 (295 ) 1,408 210 Income tax expense (recovery) 274 (84 ) 803 (44 ) Net earnings (loss) after tax 22 (211 ) 605 254 Basic earnings (loss) per share $ 0.001 $ (0.007 ) $ 0.021 $ 0.009 Professional fees of IQTalent are presented net of elimination of intercompany revenue. Selling, general and administrative expenses include an expense of $172 related to share-based compensation as a result of share price increase in the current quarter, compared to a benefit of $32 in the same quarter last year. For the six months ended February 28, 2026, selling, general and administrative expenses include an expense of $380 related to share-based compensation as a result of share price increase, compared to $31 in the same period last year "Our second quarter results reflect continued year-over-year growth and improved profitability across the business, driven by strong performance in our Caldwell segment," said Chris Beck, chief executive officer. "We delivered another quarter of solid revenue gains and meaningful improvement in operating profitability." Beck continued, "These results include ongoing strategic investments, including the expansion of our footprint into the Middle East and our annual partner conference held during the quarter, which we view as critical to strengthening collaboration and accelerating future revenue performance." "While current geopolitical dynamics are impacting hiring activity in the Middle East, we see meaningful opportunity over time. Although we are also mindful of the potential for these dynamics to influence hiring sentiment across other geographies, our new search bookings and business development pipeline have remained strong. We are confident in the strength of our business and focused on disciplined execution, strategic partner growth, and delivering high-impact talent solutions to our clients as they navigate an evolving environment. The Board of Directors today also declared a dividend of $0.01 per Common Share (one cent per Common Share), payable to holders of Common Shares of record on April 20, 2026, to be paid on June 15, 2026. 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. 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 our ability to attract and retain key personnel; exposure to departing partners taking our clients to another firm; the performance of the US, Canadian and international economies; technological advances that may significantly disrupt the labour market and weaken demand for human capital at a rapid rate; competition from other companies directly or indirectly engaged in talent acquisition; cybersecurity requirements, vulnerabilities, threats and attacks; damage to our brand reputation; foreign currency exchange rate fluctuations; 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, including its impact on our compensation plans; affiliation agreements that may fail to renew or affiliates that 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; our limited ability to access credit; risks related to deposit-taking institutions; 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 CHARTS: THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (unaudited - in $000s Canadian) As at February 28, As at August 31, 2026 2025 Assets Current assets Cash and cash equivalents 10,795 16,436 Term deposits - 4,123 Accounts receivable 17,015 18,637 Income taxes receivable 398 159 Unbilled revenue 10,798 9,248 Finance lease receivable 439 323 Prepaid expenses and other assets 3,247 3,568 42,692 52,494 Non-current assets Prepaid expenses and other assets 1,142 312 Investments 1,531 1,601 Advances 1,575 1,028 Deferred income taxes 5,944 6,624 Property and equipment, net 1,591 1,131 Right-of-use assets, net 4,046 4,623 Finance lease receivable 1,358 1,562 Intangible assets, net 12 34 Goodwill 11,289 11,357 Total assets 71,180 80,766 Liabilities Current liabilities Accounts payable 3,155 3,263 Dividend payable 294 74 Deferred revenue 1,646 3,846 Compensation payable 23,954 30,771 Lease liability 1,793 1,731 30,842 39,685 Non-current liabilities Compensation payable 883 671 Lease liability 4,706 5,438 36,431 45,794 Equity attributable to owners of the Company Share capital 15,416 15,346 Contributed surplus 15,639 15,770 Treasury shares (23 ) (2 ) Accumulated other comprehensive income 2,044 2,201 Retained earnings 1,673 1,657 Total equity 34,749 34,972 Total liabilities and equity 71,180 80,766 THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF EARNINGS (LOSS) (unaudited - in $000s Canadian, except per share amounts) Three months ended Six months ended 28-Feb-26 28-Feb-25 28-Feb-26 28-Feb-25 Revenues Professional fees 27,068 22,987 56,119 44,142 Direct expense reimbursements 229 171 459 376 27,297 23,158 56,578 44,518 Cost of sales expenses Cost of sales 21,033 18,187 44,173 35,130 Reimbursed direct expenses 229 171 459 376 21,262 18,358 44,632 35,506 Gross profit 6,035 4,800 11,946 9,012 Selling, general and administrative 5,264 5,449 10,319 9,642 5,264 5,449 10,319 9,642 Operating profit (loss) 771 (649 ) 1,627 (630 ) Finance expenses (income) Interest expense on lease liability 105 99 216 200 Investment income (72 ) (64 ) (205 ) (185 ) Foreign exchange loss (income) 442 (389 ) 208 (855 ) Earnings (loss) before income tax 296 (295 ) 1,408 210 Income tax expense (recovery) 274 (84 ) 803 (44 ) Net earnings (loss) for the period attributable to owners of the Company 22 (211 ) 605 254 Earnings (loss) per share Basic and diluted $ 0.001 $ (0.007 ) $ 0.021 $ 0.009 CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS) (unaudited - in $000s Canadian) Three months ended Six months ended 28-Feb-26 28-Feb-25 28-Feb-26 28-Feb-25 Net earnings (loss) for the period 22 (211 ) 605 254 Other comprehensive income (loss): Items that may be reclassified subsequently to net earnings (loss) Gain on marketable securities - - - 1 Cumulative translation adjustment (469 ) 535 (157 ) 1,154 Comprehensive (loss) earnings for the period attributable to owners of the Company (447 ) 324 448 1,409 THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (unaudited - in $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, 2024 (609 ) 15,392 15,541 - 1,806 (4 ) 32,126 Net earnings for the six months ended February 28, 2025 254 - - - - - 254 Share-based payment expense - - 130 - - - 130 Dividend payments declared (148 ) - - - - - (148 ) Gain on marketable securities - - - - - 1 1 Treasury shares - - - (6 ) - - (6 ) Change in cumulative translation adjustment - - - - 1,154 - 1,154 Balance - February 28, 2025 (503 ) 15,392 15,671 (6 ) 2,960 (3 ) 33,511 Balance - August 31, 2025 1,657 15,346 15,770 (2 ) 2,206 (5 ) 34,972 Net earnings for the six months ended February 28, 2026 605 - - - - - 605 Share-based payment expense - - 9 - - - 9 Dividend payments declared (589 ) - - - - - (589 ) Shares issued and (cancelled) - 70 (140 ) - - - (70 ) Treasury shares - - - (21 ) - - (21 ) Change in cumulative translation adjustment - - - - (157 ) - (157 ) Balance - February 28, 2026 1,673 15,416 15,639 (23 ) 2,049 (5 ) 34,749 THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW (unaudited - in $000s Canadian) Six months ended 28-Feb-26 28-Feb-25 Cash flow provided by (used in) Operating activities Net earnings for the period 605 254 Add (deduct) items not affecting cash Depreciation of property and equipment 211 217 Depreciation of right-of-use assets 560 664 Amortization of intangible assets 23 28 Amortization of advances 474 687 Interest expense on lease liability 216 200 Interest income related to finance lease receivable (16 ) - Share-based payment expense 9 130 Loss (gain) on unrealized foreign exchange on subsidiary loans 88 (576 ) Losses related to equity-accounted associate 59 60 Changes in working capital (8,378 ) (12,382 ) Net cash used in operating activities (6,149 ) (10,718 ) Investing activities Purchase of property and equipment (678 ) (119 ) Payment of advances (1,619 ) (1,130 ) Repayment of advances - 859 Maturity of term deposits 4,123 - Net cash from (used in) investing activities 1,826 (390 ) Financing activities Payment of lease liability (866 ) (881 ) Payment of dividends (369 ) (74 ) Purchase of treasury shares (21 ) (6 ) Issued and cancelled shares, net (70 ) - Sublease payments received 104 - Net cash used in financing activities (1,222 ) (961 ) Effect of exchange rate changes on cash and cash equivalents (96 ) 231 Net decrease in cash and cash equivalents (5,641 ) (11,838 ) Cash and cash equivalents, beginning of period 16,436 19,634 Cash and cash equivalents, end of period 10,795 7,796 SOURCE: Caldwell Partners International, Inc. 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