VIQ's Australian division placed into administration

Executive Summary

• VIQ Solutions has placed its Australian division into voluntary administration to focus resources on its North American and UK operations, citing challenging business conditions and negative financial impact from the Australian unit.
• The company released preliminary unaudited financial results for the year ended December 31, 2025, showing estimated consolidated revenue of ~$41 million and adjusted EBITDA of ~$5 million.
• Significant executive changes include the appointment of Michael Wolfe as CFO (effective April 1, 2026) and a new management service agreement for CEO Larry Taylor, who will begin receiving compensation.

Key Details

• Australian Subsidiary Administration:
  • Entities placed into voluntary administration under Part 5.3A of the Corporations Act 2001 (Australia): VIQ Australia Pty. Ltd., VIQ Solutions Pty. Ltd., VIQ Solutions Australia Pty. Ltd., VIQ Pty. Ltd., and VIQ Australia Services Pty. Ltd.
  • Strategic rationale: To focus management and capital on North American and UK operations, which remain the highest-performing business units.
  • Operational continuity: The company will support the administrator to ensure VIQ Australia continues to operate without disruption, as it supports critical functions for Australian courts and law enforcement.
  • Goal: Realize maximum value from remaining assets for stakeholders.
  • Credit Agreement Default: The voluntary administration constitutes an event of default under the credit agreement dated January 13, 2023 (as amended) with Beedie Investments Ltd.
• Preliminary Financial Results (Year Ended Dec. 31, 2025):
  • Estimated Consolidated Revenue: ~$41 million.
  • Estimated Consolidated Adjusted EBITDA: ~$5 million.
  • Excluding VIQ Australia: Estimated Consolidated Revenue ~$20 million; Estimated Consolidated Adjusted EBITDA ~$3 million.
  • Note: Results are preliminary, unaudited, based on management estimates, and not yet approved by the audit committee or board.
• Executive Appointments:
  • CFO: Michael Wolfe appointed effective April 1, 2026. He brings 30+ years of experience, including prior CFO roles at mid-market Canadian companies (e.g., Baylin Technologies Inc.).
  • Resignation: Alexie Edwards resigned as CFO effective March 31, 2026, and will assist with the transition.
• CEO Compensation:
  • Larry Taylor entered into a management service agreement (MSA) effective April 1, 2026, transitioning to full-time CEO.
  • Compensation Structure: One-time fee of $50,000 USD on April 1, 2026, followed by monthly fees of $25,000 USD commencing May 1, 2026.
  • Termination: Company retains the right to terminate the MSA with 90 days' written notice.
  • Context: Taylor had served as CEO since August 2025 without remuneration.

Notable Quotes

• "The decision to appoint voluntary administrators follows a thorough review of Australian operations, including the current challenging business environment in Australia, and the negative impact on the financial results of our overall business," said Larry Taylor, chief executive officer of VIQ Solutions.
• "We are disappointed that we were unable to bring the full capability of the company's global scalable architecture and best practices to the Australian business. We will support the administrator to ensure that the business of VIQ Australia continues to operate without disruption, given that VIQ Australia supports critical functions of the Australian courts and law enforcement."