Reklaim Achieves 40% Year-to-Date Revenue Growth, Retires Debenture, and Strengthens Cash Position

Executive Summary

• Reklaim Ltd. reported Q2 2025 financial results showing 18% year-over-year revenue growth to $1.30 million and a significant improvement in EBITDA.
• The company fully repaid its debenture, reducing liabilities by over $800,000 and eliminating future interest expense, while also reducing its warrant overhang from 24 million to 7.45 million warrants.
• The cash balance increased by 19.6% to $419,000, and the company announced new product launches including "Reklaim Protect" and "Reklaim Jackpot," alongside the advancement of its Shares for Redemption program.

Key Details

• Revenue: $1.30 million for Q2 2025, an 18% increase from $1.10 million in Q2 2024; marks the fifth consecutive quarter of year-over-year growth.
• Gross Margin: 77% in Q2 2025, compared to 81% in Q2 2024, attributed to investments in product launches and temporary use of a third-party distribution platform.
• EBITDA: ($140,634) in Q2 2025, a significant improvement from ($332,776) in Q2 2024.
• Cash Position: Cash balance of $419,000 at quarter-end, representing a 19.6% increase from Q1 2025.
• Debt Repayment: Debenture fully repaid, reducing total liabilities by over $800,000 and eliminating future interest expense.
• Warrant Reduction: Outstanding warrants reduced to 7.45 million at quarter-end and 1.56 million as of July 2025, down from 24 million warrants at the beginning of the quarter.
• Product Launch (Reklaim Protect): Launched in May 2025, an AI subscription-based privacy service allowing consumers to remove personal info from data brokers, monitor dark web exposure, and opt out of state registries, creating a new recurring revenue stream.
• Product Launch (Reklaim Jackpot): Launched in July 2025, a gamified engagement initiative where users can pledge points for a chance to win a $10,000 prize to drive retention and user base growth.
• Shares for Redemption (S4R): Advanced the S4R program in Canada, allowing consumers to redeem points for common shares; completed issuance of 2,730 common shares to settle $245.70 in consumer redemptions.
• Share Repurchase: Purchased 105,000 common shares at an average price of $0.09 under the normal course issuer bid (NCIB) for cancellation during Q2 2025.
• Market Making Agreement: Engaged Independent Trading Group Inc. (ITG) for market-making services on the TSX Venture Exchange. The agreement commenced November 1, 2024, for an initial 12-month term. ITG will be paid $4,500 per month plus taxes from general working capital, with no performance factors or equity compensation involved.

Notable Quotes

• "With the debenture retired and the warrant overhang reduced, Reklaim has removed the structural barriers that weigh on many small caps," said Neil Sweeney, CEO & Founder of Reklaim. "We can now move forward with a clean balance sheet and focus on what matters most: building products that consumers want and brands need."