Pivotree earns $937,518 in Q3

Mr. Bill Di Nardo reports PIVOTREE ANNOUNCES THIRD QUARTER 2025 RESULTS Pivotree Inc. has released financial results for the three- and nine-month periods ended Sept. 30, 2025. All amounts are expressed in Canadian dollars unless otherwise stated. "We've turned Pivotree into a consistent EBITDA [earnings before interest, taxes, depreciation and amortization] and cash producer, with our third consecutive quarter of profitability delivering $900,000 in net income," said Bill Di Nardo, chief executive officer of Pivotree. "Our operational discipline and client-focused execution have established the solid foundation we needed. Now, as we navigate the rapidly evolving AI [artificial intelligence] and commerce technology landscape, we are well positioned to capitalize on the growth opportunities ahead." Pivotree also announced today that it has released a letter to shareholders from Mr. Di Nardo. The letter can be accessed from the company's website and filed on SEDAR+. Third quarter 2025 financial highlights (all figures are in Canadian dollars and all comparisons are relative to the three-month period ended Sept. 30, 2024, unless otherwise stated): Net income of $900,000, compared with a net loss of $5.1-million for the prior-year period, primarily due to reduced operating expenses as a result of prior-year restructure efforts; Adjusted EBITDA of $1.8-million, compared with an adjusted EBITDA of negative $800,000 for the prior-year period; the continued strength in EBITDA is the result of the improved gross margins and operational expense restructuring that took place during 2024; The business realized sequential quarter growth within managed and IP (Internet protocol) solutions (MIPS), which was offset by declines in legacy managed services (LMS) as described below, leading to total revenue of $15.5-million and a 17.7-per-cent decline from Q3 2024: MIPS revenue increased 2.3 per cent to $3.9-million in Q3 2025 from $3.8-million in Q3 2024, related to strong double-digit growth in SKU Build, helping more than offset a decline in application support largely driven by a single customer; LMS revenue declined 56.7 per cent to $2.1-million in Q3 2025 from $4.9M in Q3 2024, related to churn and melt of Legacy Oracle customers; Professional services revenue of $9.5-million, a decrease of 6.5 per cent; these three-month results contain new customer projects, which helped partially offset completed projects from the prior year; Gross margin improved to 46.8 per cent of total revenue, yielding gross profit of $7.3-million, compared with $7.3-million, or 38.7 per cent of revenue, for the prior-year period; professional service margins were particularly strong, contributing to the overall gross margin improvement. Third quarter 2025 business highlights: The commerce group delivered strong total contract value (TCV) bookings, highlighted by multiple seven-figure extensions for integration projects. Additionally, the group secured a number of smaller extensions across its VTEX and microservices engagements. Notably, Q3 saw a significant spike in LMS TCV bookings, driven by renewals of Oracle contracts. The data team had success securing six new logos in Q3. These wins include key implementations of Stibo and Akeneo, with two projects initiating with a SKU Build commitment. The group also secured two new logos specifically for SKU Build proof of concepts. Multiple renewals across the company's application support contracts also contributed to the group's overall MIPS TCV bookings for the quarter. Q3 marked the best quarter of TCV bookings in fiscal 2025 for the supply chain business. This performance was largely driven by securing a number of large extensions for OMS (order management system) professional services engagements. Results of operations The following table outlines our consolidated statements of income (loss) and comprehensive income (loss) for the three months ended Sept. 30, 2025, and 2024. Conference call Management will host a live video webinar on Wednesday, Nov. 13, 2025, at 8:30 a.m. ET to discuss these third quarter 2025 results. A replay will be available approximately two hours after the conclusion of the live event and posted on the company's website. About Pivotree Inc. Pivotree, a leader in frictionless commerce, strategizes, designs, builds and manages digital commerce, data management and supply chain solutions for over 150 major retailers and branded manufacturers globally. With a portfolio of digital products as well as managed and professional services, Pivotree provides businesses of all sizes with true end-to-end solutions. Headquartered in Toronto, Canada, with offices and customers in the Americas, EMEA (Europe, the Middle East and Africa) and Asia Pacific, Pivotree is widely recognized for its partnership with top brands across industries. We seek Safe Harbor.