IC Group loses $600,000 in Q2

Mr. Duncan McCready reports IC GROUP HOLDINGS REPORTS SECOND QUARTER 2025 FINANCIALS, REVENUE INCREASES 47% YEAR-OVER-YEAR WITH STRONG ENTERPRISE MOMENTUM, AND AGM RESULTS IC Group Holdings Inc. has released its unaudited financial results for the three and six months ended June 30, 2025. All figures are reported in Canadian dollars unless otherwise stated. "The second quarter extended our strong start to the year, delivering double-digit revenue and gross profit growth across our business lines while increasing annual recurring revenue to 70 per cent of total revenue. The company also signed two agreements valued at up to $7.8-million (U.S.) across 2025 and 2026, inclusive of prizing, in addition to a five-year contract extension with a leading global technology customer that extends our services to 2030," said Duncan McCready, chief executive officer of IC Group. "Our results reflect our commitment to continue to simplify and scale solutions with global clients who rely on us for secure, compliant consumer engagement that drives commerce across digital platforms and in live events." Q2 (second quarter) 2025 financial highlights: Revenue increased 47 per cent year over year to $6.5-million, compared with $4.4-million in Q2 2024. Annual recurring revenue (ARR) accounted for 70 per cent of total revenue in Q2 2025, up from 61 per cent in Q2 2024. Gross profit rose 28 per cent to $3.0-million, compared with $2.3-million in Q2 2024. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $200,000, consistent with $200,000 in Q2 2024. Net loss for the quarter was $600,000, compared with $900,000 in Q2 2024. Q2 business segment highlights Digital promotions: Revenue increased 26 per cent to $3.0-million from $2.4-million in Q2 2024. Gross margin improved to 69 per cent in Q2 2025, compared with 60 per cent in Q2 2024. Growth was driven by increased activity from a major U.S. customer, override rebate revenue from prizing programs and contributions from the Emotion Media Inc. acquisition. Mobile messaging: Revenue grew 107 per cent to $3.2-million, up from $1.5-million in Q2 2024. Gross margin declined to 22 per cent in Q2 2025, compared with 39 per cent in Q2 2024. The expected decrease in gross margin is driven by a higher proportion of lower-margin mobile messaging revenue, which is reflective of the change in the mobile messaging business model to scale more wholesale customers, driving higher volume messages at lower margins. Insurance solutions: Revenue decreased 32 per cent to $400,000 from $500,000 in Q2 2024. Gross margin improved to 70 per cent in Q2 2025, compared with 61 per cent in Q2 2024. Results reflected a softer market, competition and a planned adjustment in product mix, while margins improved to 70 per cent as the company optimized its take rate on premiums bound. The unaudited financial statements and management's discussion and analysis (MD&A) for the quarter ended June 30, 2025, are available under the company's profile on SEDAR+ and on the IC Group website. Investor webinar The company will host an investor webinar at 9:30 a.m. EDT (6:30 a.m. PDT) on Thursday, Aug. 28, 2025, to discuss its financial and business results, as well as its strategic priorities for the remainder of 2025. IC Group invites shareholders, analysts, investors, media representatives and other stakeholders to attend the webinar, where Mr. McCready and John Penhale, chief financial officer, will review Q2 2025 results, followed by a question-and-answer session. Investor webinar registration Register for the webinar on-line. A recording of the webinar and supporting materials will be made available in the investor section of the company's website. Results of annual general meeting The company's annual general and special meeting of shareholders was held on Aug. 26, 2025. IC Group is pleased to report that shareholders approved all matters presented. At the meeting, the number of directors was fixed at five and all five nominees were elected to the board by a majority of votes cast. The results of the election are detailed in the attached table. All other matters considered at the meeting were also approved by shareholders, including the reappointment of MNP LLP as the auditor, approval of the amended stock option plan, amendments to the corporation's bylaws and the update to the escrow agreement. About IC Group Holdings Inc. IC Group is transforming how brands engage with audiences across live events. It uses digital and social platforms to drive sales, capture valuable first party data to fuel continuing marketing initiatives and build customer loyalty. The company does this by simplifying and managing the technology, regulatory, data security and financial risks of engaging with consumer audiences on a global basis. Its solutions span digital engagement, mobile messaging and specialty insurance for Fortune 500 brands and their agency partners in international jurisdictions. We seek Safe Harbor.