Caldwell Reports First Quarter Results

TORONTO, ON / ACCESS Newswire / January 7, 2026 / Talent acquisition firm The Caldwell Partners International Inc. (TSX:CWL)(OTCQX:CWLPF) today issued its financial results for the first quarter of fiscal 2026, ended November 30, 2025. All references to quarters or years are for the fiscal periods unless otherwise noted and all currency amounts are in Canadian dollars. Financial Highlights (in $000s except per share amounts) Three Months Ended 11.30.25 11.30.24 Professional fees - Caldwell 26,074 18,389 Professional fees - IQTalent¹ 2,977 2,766 Consolidated professional fees 29,051 21,155 Direct expense reimbursements 230 205 Revenues 29,281 21,360 Cost of sales 23,140 16,943 Reimbursed direct expenses 230 205 Gross profit 5,911 4,212 Selling, general and administrative expenses2 5,055 4,193 Operating profit 856 19 Finance income (256 ) (486 ) Earnings before tax 1,112 505 Income tax expense 529 40 Net earnings after tax 583 465 Basic earnings per share $ 0.020 $ 0.016 Professional fees of IQTalent are presented net of elimination of intercompany revenue. Selling, general and administrative expenses include an expense of $208 related to share-based compensation as a result of share price increase in the current quarter, compared to a expense of $63 in the same quarter last year. "Our first quarter results represent an excellent start to fiscal 2026, with exceptional revenue growth and improved profitability year over year," said Chris Beck, chief executive officer. "Performance was strong across the business, reflecting increased hiring demand from clients and continued momentum in new search activity." Beck continued, "While operating profit compared favourably to the prior year on our higher revenue, our results included certain startup expenses related to the launch of our Dubai office. These expenditures included legal and administrative establishment costs, recruiting fees, and the integration period for recently hired partners as they ramp up on our platform. These investments support our long-term growth strategy and expanding global footprint." "We exited the first quarter with a notable improvement in executive search bookings over last year and continue to see strength in hiring demand across our client base," Beck added. "We will continue to make targeted and strategic additions to our partner team, while maintaining disciplined cost management and a commitment to a capital allocation program to return value to our shareholders. Together, these priorities position us well to deliver sustained performance as fiscal 2026 progresses." The Board of Directors today also declared a dividend of $0.01 per Common Share (one cent per Common Share), payable to holders of Common Shares of record on January 16, 2026, to be paid on March 13, 2026. About Caldwell Partners Caldwell Partners is a technology-powered talent acquisition firm specializing in recruitment at all levels. Through two distinct brands - Caldwell and IQTalent - the firm leverages the latest innovations in AI to offer an integrated spectrum of services delivered by teams with deep knowledge in their respective areas. Services include candidate research and sourcing through to full recruitment at the professional, executive and board levels, as well as a suite of talent strategy and assessment tools that can help clients hire the right people, then manage and inspire them to achieve maximum business results. Caldwell Partners' common shares are listed on The Toronto Stock Exchange (TSX:CWL) and trade on the OTCQX Market (OTCQX:CWLPF). Please visit our website at www.caldwell.com for further information. Forward-Looking Statements We are subject to many factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statement including, but not limited to,our ability to attract and retain key personnel; exposure to departing partners taking our clients to another firm; the performance of the US, Canadian and international economies; technological advances may significantly disrupt the labour market and weaken demand for human capital at a rapid rate; competition from other companies directly or indirectly engaged in talent acquisition; cybersecurity requirements, vulnerabilities, threats and attacks; damage to our brand reputation; foreign currency exchange rate fluctuations; our ability to align our cost structure to changes in our revenue; liability risk in the services we perform; potential legal liability from clients, employees and candidates for employment; reliance on software that we license from third parties; reliance on third-party contractors for talent acquisition support; the classification of third-party labour as contractors versus employee relationships; our ability to successfully recover from a disaster or other business continuity issues; adverse governmental and tax law rulings; successfully integrating or realizing the expected benefits from our acquisitions, adverse operating issues from acquired businesses; volatility of the market price and trading volume of our common shares, including its impact on our compensation plans; affiliation agreements may fail to renew or affiliates may be acquired; the impact on profitability from marketable securities valuation fluctuations; increasing dependence on third parties for the execution of critical functions; our ability to generate sufficient cash flow from operations to support our growth and fund any dividends; potential impairment of our acquired goodwill and intangible assets; our limited ability to access credit; risks related to deposit-taking institutions; and disruption as a result of actions of certain stockholders or potential acquirers of the Company. For more information on the factors that could affect the outcome of forward-looking statements, refer to the "Risk Factors" section of our Annual Information Form and other public filings (copies of which may be obtained at www.sedar.com). These factors should be considered carefully, and the reader should not place undue reliance on forward-looking statements. Although any forward-looking statements are based on what management currently believes to be reasonable assumptions, we cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements. Management's assumptions may prove to be incorrect. Except as required by Canadian securities laws, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf; such statements speak only as of the date made. The forward-looking statements included herein are expressly qualified in their entirety by this cautionary language. For further information, please contact: Investors: Shreya Lathia, Vice President and Chief Financial Officer [email protected] +1 (416) 934-2241 Media: Caroline Lomot, Vice President, Marketing & Communications [email protected] +1 (516) 830-3535 THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (unaudited - in $000s Canadian) As at 'November 30 As at 'August 31 2025 2025 Assets Current Assets Cash and cash equivalents 9,554 16,436 Term Deposits 8,387 4,123 Accounts receivable 17,576 18,637 Income taxes receivable - 159 Unbilled revenue 9,655 9,248 Finance lease receivable 433 323 Prepaid expenses and other assets 3,829 3,568 49,434 52,494 Non-current assets Prepaid expenses and other assets 314 312 Investments 1,594 1,601 Advances 1,453 1,028 Deferred income taxes 6,349 6,624 Property and equipment 1,655 1,131 Right-of-use assets 4,377 4,623 Finance lease receivable 1,460 1,562 Intangible assets 21 34 Goodwill 11,519 11,357 Total Assets 78,176 80,766 Liabilities Current liabilities Accounts payable 3,899 3,263 Dividend payable 295 74 Deferred Revenue 1,607 3,846 Income tax payable 39 - Compensation payable 28,997 30,771 Lease liability 1,785 1,731 36,622 39,685 Non-Current liabilities Compensation payable 874 671 Lease liability 5,119 5,438 42,615 45,794 Equity attributable to owners of the Company Share capital 15,339 15,346 Contributed surplus 15,768 15,770 Treasury shares (4 ) (2 ) Accumulated other comprehensive income 2,513 2,201 Retained Earnings 1,945 1,657 Total equity 35,561 34,972 Total liabilities and equity 78,176 80,766 THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF EARNINGS (unaudited - in $000s Canadian, except per share amounts) Three months ended 30-Nov-25 30-Nov-24 Revenues Professional fees 29,051 21,155 Direct expense reimbursements 230 205 29,281 21,360 Cost of sales expenses Cost of sales 23,140 16,943 Reimbursed direct expenses 230 205 23,370 17,148 Gross Profit 5,911 4,212 Selling, general and administrative 5,055 4,193 5,055 4,193 Operating Profit 856 19 Finance expenses (income) Interest expense on lease liability 111 101 Investment income and other income (133 ) (121 ) Foreign exchange gain (234 ) (466 ) Earnings before income tax 1,112 505 Income tax expense 529 40 Net earnings for the period attributable to owners of the Company 583 465 Earnings per share Basic and diluted $ 0.020 $ 0.016 CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS (unaudited - in $000s Canadian) Three months ended 30-Nov-25 30-Nov-24 Net earnings for the period 583 465 Other comprehensive income (loss): Items that may be reclassified subsequently to net earnings Gain on marketable securities - 1 Cumulative translation adjustment 312 619 Comprehensive earnings for the period attributable to owners of the company 895 1,085 THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (unaudited - in $000s Canadian) Accumulated Other Comprehensive Income (Loss) Retained Earnings Share Capital Contributed Surplus Treasury Shares Cumulative Translation Adjustment (Loss)Gain on Marketable Securities Total Equity Balance - August 31, 2024 (609 ) 15,392 15,541 - 1,806 (4 ) 32,126 Net earnings for the three months ended November 30, 2024 465 - - - - - 465 Share-based payment expense - - 65 - - - 65 Dividend payments declared (73 ) - - - - - (73 ) Gain on marketable securities available for sale - - - - - 1 1 Change in cumulative translation adjustment - - - - 619 - 619 Balance - November 30, 2024 (217 ) 15,392 15,606 - 2,425 (3 ) 33,203 Balance - August 31, 2025 1,657 15,346 15,770 (2 ) 2,206 (5 ) 34,972 Net earnings for the three months ended November 30, 2025 583 - - - - - 583 Dividend payments declared (295 ) - - - - (295 ) Shares Cancelled - (7 ) (2 ) 2 - (7 ) Treasury Shares - - - (4 ) - - (4 ) Change in cumulative translation adjustment - - - - 312 - 312 Balance - November 30, 2025 1,945 15,339 15,768 (4 ) 2,518 (5 ) 35,561 THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited - in $000s Canadian) Three months ended 30-Nov-25 30-Nov-24 Cash flow provided by (used in) Net earnings for the period 583 465 Add (deduct) items not affecting cash Depreciation of property and equipment 99 106 Depreciation of right-of-use assets 290 327 Amortization of intangible assets 14 14 Amortization of advances 213 154 Interest expense on lease liabilities 111 101 Interest income related to finance lease receivable (8 ) - Share based payment expense - 65 Gain on unrealized foreign exchange on subsidiary loans (58 ) (311 ) Losses related to equity accounted associate 34 28 Changes in working capital (1,918 ) (7,122 ) Net cash used in operating activities (640 ) (6,173 ) Investing activities Purchase of property and equipment (610 ) (46 ) Payment of advances (896 ) (240 ) Repayment of advances - 859 Purchase of term deposits (4,237 ) - Net cash (used in) generated from investing activities (5,743 ) 573 Financing activities Payment of lease liabilities (427 ) (432 ) Payment of dividends (74 ) - Purchase of shares for cancellation (11 ) - Net cash used in financing activities (512 ) (432 ) Effect of exchange rate changes on cash and cash equivalents 13 119 Net decrease in cash and cash equivalents (6,882 ) (5,913 ) Cash and cash equivalents, beginning of year 16,436 19,634 Cash and cash equivalents, end of period 9,554 13,721 SOURCE: Caldwell Partners International, Inc. 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