illumin Reports Fourth Quarter and Full Year 2025 Financial Results

Executive Summary

• illumin Holdings Inc. reported Q4 2025 revenue of $43.1 M (down 14% YoY) and a full‑year 2025 revenue of $143.6 M, both below prior year levels.
• Adjusted EBITDA turned negative in both the quarter (‑$0.9 M) and the year (‑$2.2 M), reversing prior period profits.
• Net loss widened to $4.8 M for Q4 and $14.7 M for the full year, driven by lower gross margins, foreign exchange losses, and restructuring costs; cash fell to $43.8 M.

Key Details

• Quarterly Revenue: $43.1 M vs. $49.9 M YoY.
• Exchange Service Revenue: $19.7 M (↑48% YoY, 46% of total).
• Self‑Service Revenue: $10.2 M (↓13.0 M YoY, ↑23% sequentially; +41 net new clients).
• Managed Service Revenue: $13.3 M.
• Gross Margin: 36% (down from 45% prior year) – mix shift impact.
• Net Revenue / Gross Profit: $15.6 M vs. $22.7 M YoY.
• Adjusted EBITDA (Q4): ‑$0.9 M (vs. +$3.9 M YoY).
• Quarterly Net Loss: $4.8 M (vs. $4.1 M profit YoY); includes a $1.1 M foreign‑exchange loss.
• Cash & Cash Equivalents (31 Dec 2025): $43.8 M (down from $56.0 M).

Fiscal Year 2025 Highlights

• Full‑Year Revenue: $143.6 M vs. $140.4 M YoY (+2%).
• Gross Margin: 40% (down from 47%).
• Adjusted EBITDA (FY): ‑$2.2 M (vs. +$6.3 M YoY).
• Net Loss (FY): $14.7 M vs. $0.9 M profit prior year.
• Restructuring: Completed workforce reductions in North America; operating expenses aligned to lower revenue base.

Share Repurchase Activity

• NCIB 2024 ran until 22 Dec 2025 – purchased 281,441 shares @ $1.22 avg ($342k) and 1,025,552 shares @ $1.53 avg ($1.571 M).
• New NCIB launched 31 Dec 2025 to repurchase up to 3.8 M shares; open until 30 Dec 2026.

Capital Allocation & Investments

• Software Development: $9.0 M invested in platform enhancements during 2025.
• Platform Upgrades: Real‑time performance visibility and AI‑driven outcomes launched Jan 2026.

Management Commentary

• CEO Simon Cairns highlighted a shift toward “platform‑driven” revenue, growth in Exchange services, sequential recovery in Self‑Service, and completion of restructuring.
• CFO Michael Amaro noted $43.8 M cash balance, no debt, positive operating cash flow, and disciplined capital allocation despite margin pressure from product‑mix changes.

Additional Financial Tables (selected)

• Net Income/Loss: Q4 2025 – $(4,842)k; FY 2025 – $(14,658)k.
• Adjusted EBITDA Reconciliation (FY): Net loss $(14,796)k → Adjusted EBITDA ‑$2,154)k after $12,504k adjustments.
• Cash Flow Summary: Operating cash used $11.2 M; investing cash outflow $11.9 M; financing cash outflow $3.2 M (including share repurchases).

Notable Quotes

“We enter 2026 with an expanded sales pipeline… a more efficient operating structure now in place, we believe illumin is well‑positioned to translate that momentum into sustained revenue growth.” – Simon Cairns, CEO

“Investments made in product development and platform upgrades during 2025 position us to support revenue growth efficiently as scalable segments expand.” – Michael Amaro, Interim CFO