Accord Financial loses $2.42-million in Q3 2025

Ms. Irene Eddy reports ACCORD ANNOUNCES THIRD QUARTER FINANCIAL RESULTS Accord Financial Corp. today released its financial results for the third quarter ended Sept. 30, 2025. The financial figures presented in this release are reported in Canadian dollars and have been prepared in accordance with international financial reporting standards. The company's president and chief executive officer, Simon Hitzig, commented: "Throughout 2025 Accord's growth and profitability have been hampered by the debt side of the balance sheet. While we've achieved modest portfolio growth, and controlled operating expenses, we've been unable to realize the company's profit potential." On Aug. 15 Accord announced an amendment to its primary banking facility, extending the maturity to Dec. 15, 2025, providing time for the company to continue to actively pursue a broad range of initiatives, including potential divestitures of portfolio assets or business units as well as other financing alternatives, to repay or refinance its debt obligations (with debt amounts of $203-million due in December, 2025, and $26-million due on Jan. 31, 2026). "Through the period, the company, working closely with its financial advisers, has continued to pursue its strategic initiatives to repay its outstanding debt and further simplify the business," added Mr. Hitzig. Accord's finance receivables and loans (funds employed) closed at $409-million on Sept. 30, 2025, up 12.0 per cent from $366-million at the start of the year. Despite modest portfolio growth over the first nine months of 2025, average funds employed year to date slipped to $394-million compared with $439-million in the same period of 2024. With average funds employed trending lower year over year and considering the one-time gain on sale of the AEF portfolio in September, 2024, third quarter revenue declined to $15.8-million compared with $21.2-million in the same period of 2024. To address the year-over-year decline in revenue, the company has reduced overhead, with third quarter general and administrative expenses coming in at $7.0-million versus $7.9-million in the same period last year. Within third quarter G&A (general and administrative) is $690,000 ($1.1-million year to date) of professional fees primarily related to managing, and planning to repay, the company's debt obligations. For the third quarter (and first nine months), the company earned a modest preprovision pretax operating profit, however, professional fees and the $2.5-million provision for credit losses pushed the company to a third quarter net loss attributable to shareholders of $2.4-million. The loss of 28 cents per common share caused book value per share to slip to $8.92. Commenting further, Mr. Hitzig noted, "Successful execution of strategic initiatives to streamline the business, refinance outstanding debt and strengthen the balance sheet is the company's top priority over the balance of 2025 and early 2026." About Accord Financial Corp. Accord Financial is one of North America's most dynamic commercial finance companies providing fast, versatile financing solutions including asset-based lending, factoring, inventory finance, equipment finance (in Canada), trade finance and film/media finance. By leveraging the company's unique combination of deep experience and independent thinking, the company crafts winning financial solutions for small and medium-sized businesses, simply delivered, so the company's clients can thrive. We seek Safe Harbor.