Illumin Holdings loses $3.19-million in Q1

Mr. Tal Hayek reports ILLUMIN REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS Illumin Holdings Inc. has released its financial results for the first quarter ended March 31, 2026. First quarter 2026 highlights: First quarter revenue rose 20 per cent to $35-million from $29.1-million in the prior year, driven by higher exchange service revenue and managed service revenue. Self-service revenue was $8.4-million, down slightly by 1 per cent compared with the year-ago period, and represented 24 per cent of total revenue while adding seven net new clients in the quarter. Managed service revenue was up by 7 per cent to $9.3-million in the quarter. Exchange service revenue increased by 45 per cent from the prior year to $17.4-million, continuing on its strong demand from new and existing customers, an enhanced supplier network, and platform improvements. Gross margin was 35 per cent compared with 44 per cent for the same period in 2025, reflecting the change in mix to service lines with lower margins, such as exchange service. Net revenue or gross profit (revenue less media-related costs) was $12.4-million, down slightly by 4 per cent compared with $12.9-million in the prior-year period. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss was $2-million, compared with $400,000 in the prior-year period, primarily attributable to lower gross profit due to lower margins and higher operating costs. Net loss was $3.2-million, compared with $1.9-million in Q1 2025. The increase in net loss was primarily a result of the lower adjusted EBITDA, partially offset by a higher foreign exchange gain. On Dec. 31, 2025, the company commenced a normal course issuer bid (NCIB) to purchase for cancellation up to 3,858,045 of its outstanding common shares. Under this NCIB, daily purchases are limited to 25,279 common shares. The NCIB may continue to Dec. 30, 2026, or such earlier time as the NCIB is completed or terminated at the option of the company. During the three months ended March 31, 2026, under this NCIB, the company purchased and cancelled 686,558 of its outstanding common shares at an average price of 85 cents per share totalling approximately $600,000. Cash and cash equivalents were $37.5-million as at March 31, 2026. Tal Hayek, Illumin's chief executive officer, commented: "Our first quarter reflected a shift in our revenue mix, with revenue up 20 per cent year over year to $35-million, driven by strong growth in exchange, which increased 45 per cent. At the same time, parts of our DSP [demand-side platform] business were softer, and the shift in product mix lowered our overall gross margin. This put pressure on cash flow and made it clear where we need to do better, particularly in how we balance growth with profitability. The DSP business continued to grow, though at a pace below our targets. This is an area where we see clear opportunity to improve execution. "Since returning as CEO, I've oriented the organization around three non-negotiable outcomes: "Grow DSP revenues with a much greater emphasis on CTV [connected TV]; "Expand gross margins by exiting low-margin transactions and improving the quality of our revenue mix; "Reduce SG&A [selling, general and administrative expenses] to accelerate profitability." Michael Amaro, Illumin's interim chief financial officer, commented: "The first quarter reflects continued progress in executing our growth strategy, particularly in expanding demand within exchange service. While we continue to invest in key areas to support long-term growth, maintaining operational discipline remains a priority as we continue our journey back to profitability." Conference call details Date:  Friday, May 8, 2026 Time:  8:30 a.m. Eastern Time To register for the webcast and presentation, please visit Illumin's website. Please connect 15 minutes prior to the conference call to ensure time for any software download that may be needed to listen to the webcast. A recording of the conference call webcast will be available after the call by visiting the company's website. About Illumin Holdings Inc. Illumin is a strategic advertising platform built to help marketers see more and act faster across the open Web. By reducing fragmentation and keeping campaigns connected, Illumin helps brands and agencies get more from every campaign. Headquartered in Toronto, Canada, Illumin serves clients across North America, Latin America and Europe. We seek Safe Harbor.