Saltire Capital loses $3.01-million (U.S.) in 2025

Executive Summary

• Saltire Capital Ltd. reported its audited consolidated financial results for the year ended December 31, 2025, highlighting significant growth driven by the acquisition of SanStone Investments Ltd.
• Revenue more than tripled year-over-year to $49.1 million, while the company returned to profitability on a net loss basis, significantly improving from the prior year's large net loss driven by listing expenses.
• The company faces a material uncertainty regarding its ability to continue as a going concern due to covenant-related timing issues at year-end, though management remains in dialogue with lenders and expects improved cash flow in 2026.

Key Details

• Revenue: $49.1 million for the year ended Dec. 31, 2025, an increase of 213% ($33.4 million) compared to $15.7 million in 2024.
  • SanStone Investments contributed approximately $29.8 million of revenue following its acquisition on Aug. 1, 2025.
  • Strong/MDI Screen Systems Inc. (MDI) revenue increased by 20%, driven by cinema-related revenue (32% of total revenue vs. 87% in prior year) and a 43% increase in other product revenue.
• Gross Profit: $15.0 million (31% margin), compared to $6.3 million (40% margin) in 2024. The margin decrease reflects the consolidation of SanStone's dealership operations.
• Operating Income: $1.2 million, down from $1.8 million in 2024, primarily due to transaction expenses related to the SanStone acquisition.
• Net Loss: $3.0 million for 2025, compared to a net loss of $47.4 million in 2024.
  • The prior year's loss included a $44.6 million listing expense.
  • 2025 included $1.81 million in acquisition expenses related to SanStone.
  • Attributable net loss to parent: $3.2 million; non-controlling interest: $200,000.
• EBITDA: $3.5 million for 2025, compared to a loss of $46.0 million in 2024.
• Adjusted EBITDA: $3.94 million for 2025, an increase of 46.47% ($1.25 million) from $2.69 million in 2024.
  • Drivers included improved underlying EBITDA from SanStone and MDI.
  • Offsets included the absence of prior-year listing expense add-backs, fair value movements on financial instruments (~$5.48 million), and ~$1.81 million in acquisition costs.
• Financing & Liquidity:
  • On Aug. 1, 2025, the company drew $50.1 million under its $100 million senior secured term loan facility with Sagard Credit Partners II.
  • Funds were used to refinance existing debt, finance the SanStone acquisition, and support transaction costs.
  • Total cash as of Dec. 31, 2025: $5.1 million.
• Going Concern: The company disclosed a material uncertainty regarding its ability to continue as a going concern due to the classification of borrowings as current at year-end. Management attributes this to covenant timing rather than operational deterioration and expects improved earnings and cash flow in 2026 to meet obligations.

Notable Quotes

• "The progress we made in 2025 demonstrates the value of our buy-and-build model and permanent capital structure," said Andrew Clark, chief executive officer.
• "Revenue more than tripled year over year as we significantly diversified our business with the integration of SanStone Investments, while Strong/MDI Screen Systems Inc. (MDI) delivered another solid year. These results highlight the strength and discipline of our investment approach..."