EQ Inc. Reports Third Quarter Financial Results

Executive Summary

• EQ Works reported Q2 2025 revenue of $2.5 M, a modest increase versus the prior year and a 6% rise for the nine‑month period ending September 30, 2025.
• Gross margin improved to 45% (up from 44% YoY) and adjusted EBITDA loss narrowed to $91 K, a 36–38% improvement over Q2 2024.
• Integrated Rewards (Paymi) division delivered a 56% revenue increase year‑over‑year, reinforcing its position as Canada’s largest provider of Card‑Linked Offers.

Key Details

• Revenue: $2.5 M for the quarter; nine‑month revenue up >6% YoY.
• Gross Margin: Increased to 45% (vs. 44% in Q2 2024).
• Adjusted EBITDA: Loss of $91 K, a 36–38% improvement versus a $147 K loss in Q2 2024.
• Integrated Rewards (Paymi) Division: Revenue up 56% YoY; nearly 100 Card‑Linked Offers available on the platform.
• Revenue Composition Shift: Higher proportion of strategic engagements, contributing to margin expansion.
• Non‑IFRS Measures: Adjusted EBITDA defined and reconciled (see release table).
• Management Commentary: CEO Geoffrey Rotstein highlighted momentum in data‑driven AI solutions, focus on recurring revenue, and confidence in the company’s growth strategy.

Notable Quotes

“This quarter reflects the continued progress of our long‑term strategy… we are creating a solid foundation for sustainable growth.” – Geoffrey Rotstein, President & CEO

Materiality Assessment: Material – Positive (significant improvement in key financial metrics and revenue growth in a core division).