VIQ Solutions Announces Voluntary Administration of Australian Subsidiaries to Focus on its North American and United Kingdom Operations

Executive Summary

• VIQ Solutions Inc. placed its Australian division into voluntary administration to focus resources on higher‑performing North America and UK operations.
• The administration triggers an event of default under the company’s January 13 2023 credit agreement with Beedie Investments Ltd.
• Preliminary unaudited 2025 results show consolidated revenue of ~US$41 M (≈US$20 M excluding Australia) and Adjusted EBITDA of ~US$5 M (≈US$3 M ex‑Australia).

Key Details

• Voluntary Administration: VIQ Australia Pty Ltd, VIQ Solutions Pty Ltd, VIQ Solutions Australia Pty Ltd, VIQ Pty Ltd and VIQ Australia Services Pty Ltd placed under voluntary administration pursuant to Part 5.3A of the Australian Corporations Act.
• Purpose: Redirect management and capital to North America and United Kingdom businesses, which are the company’s highest‑performing units.
• Operational Continuity: Administration will aim to keep VIQ Australia services (critical for Australian courts and law enforcement) running without disruption.
• Credit Agreement Impact: The administration constitutes an event of default under the credit agreement dated 13 Jan 2023 (amended) with Beedie Investments Ltd.
• Preliminary FY‑2025 Financials (unaudited):
• Consolidated revenue ≈ US$41 M; Adjusted EBITDA ≈ US$5 M.
• Excluding Australian operations: revenue ≈ US$20 M; Adjusted EBITDA ≈ US$3 M.
• Management Outlook: Company expects to streamline North America and UK operations to improve Adjusted EBITDA in the coming year.
• Executive Changes:
• Michael Wolfe appointed Chief Financial Officer, effective 1 Apr 2026 (30+ years finance experience, former CFO of Baylin Technologies Inc.).
• Outgoing CFO Alexie Edwards resigned effective 31 Mar 2026; will assist with transition.
• CEO Compensation Arrangement: New Management Services Agreement for CEO Larry Taylor effective 1 Apr 2026 – one‑time fee US$50,000 on 1 Apr and monthly fees of US$25,000 starting 1 May, terminable with 90‑day notice.
• Forward‑Looking Statements: Include expectations regarding administration outcome, EBITDA improvement, and future focus on North America/UK operations; subject to risks outlined in the company’s annual information form.

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,” – Larry Taylor, CEO, VIQ Solutions.

Materiality Assessment: Material – Negative (voluntary administration and default event represent a significant adverse development for the company).