EQ Inc. Reports Strong Second Quarter Financial Results

Executive Summary

• EQ Inc. reported strong financial results for the second quarter ended June 30, 2025, highlighting over 112% sequential revenue growth and a return to profitability.
• The company solidified its market position as Canada's largest provider of card-linked offers, expanding its merchant network to nearly 100 cash-back offers.
• Adjusted EBITDA improved significantly, reaching $0.1 million, marking the company's best performance in over a decade.

Key Details

• Revenue: Increased by over 112% sequentially to $3.1 million; increased by approximately 19% year-over-year.
• Gross Margin: Improved to 44%, up from 40% in the previous quarter and 43% in the same period last year.
• Adjusted EBITDA: Improved by 109% quarter-over-quarter and 127% year-over-year, reaching $0.1 million (an improvement of over $0.7 million compared to Q1 2024 and $0.2 million from the same period last year).
• Operational Update: Integrated Rewards (Paymi) expanded its merchant network, becoming Canada's largest provider of Card-Linked Offers with almost 100 cash back offers on the platform.
• Corporate Action: The Company announced the granting of stock options to current and former board members:
  • New Board Members: 300,000 stock options granted, exercisable at CDN $0.99 per option, expiring May 28, 2030. 150,000 vest immediately, and 150,000 vest over the following twelve months.
  • Former Director: 100,000 stock options granted, exercisable at CDN $1.01 per option, expiring April 16, 2026. All 100,000 options vest immediately.

Notable Quotes

• "This quarter marks an important milestone on our path to sustainable growth and profitability," said Geoffrey Rotstein, President and CEO of EQ Works. "We are proud to be Canada's largest provider of card-linked offers, a leadership position driven by the expansion of our proprietary first-party data network and the growing adoption of our reporting and insights dashboard."