Caldwell Partners International, Inc.: Caldwell Reports Fourth Quarter and Full Year Results and Increases Dividend

TORONTO, ON / ACCESS Newswire / November 20, 2025 / Talent acquisition firm The Caldwell Partners International Inc. (TSX:CWL)(OTCQX:CWLPF) today issued its financial results for the fourth quarter of fiscal 2025, ended August 31, 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								Twelve Months Ended
			08.31.25				08.31.24				08.31.25				08.31.24
Professional fees - Caldwell			27,662				19,157				91,251				74,669
Professional fees - IQTalent1			3,714				2,894				12,004				11,643
Consolidated professional fees			31,376				22,051				103,255				86,312
Direct expense reimbursements			232				182				802				839
Revenues			31,608				22,233				104,057				87,151
Cost of sales			24,512				17,522				81,044				68,620
Reimbursed direct expenses			232				182				802				839
Gross profit			6,864				4,529				22,211				17,692
Selling, general and administrative expenses2			4,347				4,458				18,364				18,612
Other expense (income)3,4			-				-				112				(7,979	)
Operating profit			2,517				71				3,735				7,059
Finance expenses			118				278				3				810
Earnings (loss) before tax			2,399				(207	)			3,732				6,249
Income tax expense			932				264				1,170				2,061
Net earnings (loss) after tax			1,467				(471	)			2,562				4,188
Basic earnings (loss) per share		$	0.050			$	(0.016	)		$	0.087			$	0.142
Basic earnings (loss) per share adjusted for other expense (income)5		$	0.050			$	(0.016	)		$	0.089				(0.039	)

1. Professional fees of IQTalent are presented net of elimination of intercompany revenue.

2. Selling, general and administrative expenses include a benefit of $121 related to share-based compensation as a result of share price decrease in the current quarter, compared to an expense of $211 in the same quarter last year.

3. Other expense of $112 primarily reflects separation costs of $275 related to management staff reductions at IQTalent and a net loss of $324 associated with the sublease of the Caldwell's Toronto office space. These expenses were partially offset by Caldwell's $487 benefit from the Employee Retention Tax Credit (ERTC), established by the U.S. government under the CARES Act.

4. Restructuring income of $7,979 in the first quarter of the prior year includes separation expense of $1,089 for management staff reductions at IQTalent, more than offset by a net gain on lease termination of $9,068 as IQTalent negotiated a termination of its Nashville leased facility resulting in a recovery of lease impairment charges expensed in the fourth quarter of the prior year.

5. Non-GAAP measure calculated by excluding tax-adjusted restructuring income from net earnings after tax and dividing by the number of shares outstanding at the end of the period. This measure allows for enhanced comparability of the current quarter results compared to the same quarter last year. See the following page for the calculation.

"Fiscal 2025 marked a strong return to growth for Caldwell and IQTalent," said Chris Beck, chief executive officer. "After two years of volatility and suppressed hiring demand, we saw a resilient rebound in both revenue and profitability, capped by an especially strong fourth quarter. Despite ongoing economic and geopolitical uncertainties, we saw leaders come off the sidelines in the second half of the year. Organizations recognized that delaying decisions carries greater risk than acting decisively, and that shift in sentiment drove increased hiring activity."

"At Caldwell, professional fees were up 44% in the current quarter compared to the prior year, reflecting both higher partner productivity and increased client activity, Beck continued. "Our momentum heading into fiscal 2026 is significantly stronger than a year ago, and we're optimistic about the market and our position within it. We have hired additional new partners and continue to engage with high-calibre professionals who align with our strategy of being a high-performing, elite executive search firm. IQTalent also delivered meaningful improvement in the fourth quarter, with revenue up 28% and a return to profitability. The team's focus on cost discipline and client engagement has strengthened our operating model, giving us greater flexibility and a solid foundation to drive continued profitable performance."

Beck added: "Across both brands, we're focused on growth, operational efficiency, and a disciplined capital allocation strategy to provide returns to our shareholders. We're confident in our ability to deliver state-of-the-art talent solutions to our clients and sustained value for our investors."

Reflecting the company's confidence in its business outlook and cash-flow strength, the Board of Directors has increased the quarterly dividend to 1.0 cent per Common Share, a 300% increase from the prior quarterly dividend of 0.25 cents per Common Share. The dividend will be payable on December 19, 2025, to shareholders of record on December 1, 2025. In addition to the dividend increase, the company intends to remain active in the market under its Normal Course Issuer Bid, continuing to repurchase shares as part of its ongoing capital allocation strategy to enhance shareholder value.

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.

Adjusted Earnings Per Share (EPS)

The table below reconciles adjusted EPS, which is a non-GAAP financial measure, to our reported net earnings after tax. Other (income)/ expense was $nil for the fourth quarter of fiscal 2025 and fiscal 2024. As a result, adjusted EPS was the same as reported EPS for the period.

		Twelve months ended
			08.31.25				08.31.24
Net earnings after tax (reported)			2,562				4,188
Less: After-tax other expense (income)1			77				(5,347	)
Adjusted profit			2,639				(1,159	)
Weighted average number of common shares outstanding			29,533,945				29,558,932
Basic profit(loss) per share adjusted for other expense(income)		$	0.089			$	(0.039	)

1. Calculated by applying Consolidated Caldwell's effective tax rate

		Twelve months ended 08.31.25				Twelve months ended 08.31.24
Other expense (income)			112				(7,979)
Adjustment: After tax other expense(income)			35				(2,632)
After tax other expense(income)			77				(5,347)
Tax rate			31.3				33.0

Forward-Looking Statements

Forward-looking statements in this document are based on current expectations subject to the significant risks and uncertainties cited. These forward-looking statements generally can be identified by the use of statements that include phrases such as "believe," "expect," "anticipate," "intend," "plan," "foresee," "may," "will," "likely," "estimates," "potential," "continue" or other similar words or phrases. Similarly, statements that describe our objectives, plans or goals also are 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, the impact of pandemic diseases, our ability to attract and retain key personnel; exposure to our partners taking our clients with them to another firm; the performance of the US, Canadian and international economies; risks related to deposit-taking institutions; foreign currency exchange rate fluctuations; competition from other companies directly or indirectly engaged in talent acquisition; cybersecurity requirements, vulnerabilities, threats and attacks; damage to our brand reputation; 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; technological advances may significantly disrupt the labour market and weaken demand for human capital at a rapid rate; 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; 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
[e-mail]
[phone]

Media:
Caroline Lomot, Vice President, Marketing & Communications
[e-mail]
[phone]

THE CALDWELL PARTNERS INTERNATIONAL INC.
CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
($000s Canadian)

		As at 'August 31				As at 'August 31
		2025				2024
Assets
Current Assets
Cash and cash equivalents			16,436				19,634
Term Deposits			4,123				-
Accounts receivable			18,637				12,664
Income taxes receivable			159				177
Unbilled revenue			9,248				5,859
Finance lease receivable			323				-
Prepaid expenses and other assets			3,568				2,327
			52,494				40,661
Non-current assets
Prepaid expenses and other assets			312				276
Investments			1,601				1,682
Advances			1,028				904
Deferred income taxes			6,624				6,851
Property and equipment			1,131				1,698
Right-of-use assets			4,623				5,406
Finance lease receivable			1,562				-
Intangible assets			34				88
Goodwill			11,357				11,186
Total Assets			80,766				68,752
Liabilities
Current liabilities
Accounts payable			3,263				3,409
Dividend payable			74				-
Deferred Revenue			3,846				-
Compensation payable			30,771				26,023
Lease liability			1,731				1,644
			39,685				31,076
Non-Current liabilities
Compensation payable			671				692
Lease liability			5,438				4,858
			45,794				36,626
Equity attributable to owners of the Company
Share capital			15,346				15,392
Contributed surplus			15,770				15,541
Treasury shares			(2	)			-
Accumulated other comprehensive income			2,201				1,802
Retained Earnings (Deficit)			1,657				(609	)
Total equity			34,972				32,126
Total liabilities and equity			80,766				68,752

THE CALDWELL PARTNERS INTERNATIONAL INC.
CONSOLIDATED INTERIM STATEMENTS OF EARNINGS
($000s Canadian, except per share amounts)

		Twelve months ended
		31-Aug-25				31-Aug-24
Revenues
Professional fees			103,255				86,312
Direct expense reimbursements			802				839
			104,057				87,151
Cost of sales expenses
Cost of sales			81,044				68,620
Reimbursed direct expenses			802				839
			81,846				69,459
Gross Profit			22,211				17,692
Selling, general and administrative			18,364				18,612
Other expense/(income)			112				(7,979	)
			18,476				10,633
Operating Profit			3,735				7,059
Finance expense (income)
Interest expense on lease liability			388				715
Investment and other income			(396	)			(133	)
Foreign exchange loss			11				228
Earnings before income tax			3,732				6,249
Income tax expense			1,170				2,061
Net earnings for the period attributable to owners of the Company			2,562				4,188
Earnings per share
Basic		$	0.087			$	0.142
Diluted		$	0.086			$	0.141

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS
(unaudited - in $000s Canadian)

		Twelve months ended
		31-Aug-25				31-Aug-24
Net earnings for the period			2,562				4,188
Other comprehensive income (loss):
Items that may be reclassified subsequently to net earnings
(Loss) gain on marketable securities			(1	)			35
Cumulative translation adjustment			400				(80	)
Comprehensive earnings for the period attributable to owners of the company			2,961				4,143

THE CALDWELL PARTNERS INTERNATIONAL INC.
CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
($000s Canadian)

																		Accumulated Other Comprehensive Income (Loss)
		Retained Earnings (Deficit)				Share Capital				Contributed Surplus				Treasury Shares				Cumulative Translation Adjustment				(Loss)Gain on Marketable Securities				Total Equity
Balance - August 31, 2023			(4,797	)			15,392				15,282				-				1,886				(39	)			27,724
Net earnings for the year months ended August 31, 2024			4,188				-				-				-				-				-				4,188
Share-based payment expense			-				-				259				-				-				-				259
Gain on marketable securities available for sale			-				-				-				-				-				35				35
Change in cumulative translation adjustment			-				-				-				-				(80	)			-				(80	)
Balance - August 31, 2024			(609	)			15,392				15,541				-				1,806				(4	)			32,126
Balance - August 31, 2024			(609	)			15,392				15,541				-				1,806				(4	)			32,126
Net earnings for the year months ended August 31, 2025			2,562				-				-				-				-				-				2,562
Share-based payment expense			-				-				259				-				-				-				259
Dividend payments declared			(296	)			-				-				-				-								(296	)
Loss on marketable securities available for sale			-				-				-				-				-				(1	)			(1	)
Shares Cancelled			-				(46	)			(30	)			-				-								(76	)
Treasury Shares			-				-				-				(2	)			-				-				(2	)
Change in cumulative translation adjustment			-				-				-				-				400				-				400
Balance - August 31, 2025			1,657				15,346				15,770				(2	)			2,206				(5	)			34,972

THE CALDWELL PARTNERS INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
($000s Canadian)

		Twelve months ended
		August 31, 2025				August 31, 2024
Cash flow provided by (used in)
Operating activities
Net earnings for the period			2,562				4,188
Add (deduct) items not affecting cash
Depreciation of property and equipment			414				428
Depreciation of right-of-use assets			1,316				1,586
Amortization of intangible assets			56				55
Amortization of advances			800				643
Interest expense on lease liabilities			388				715
Share based payment expense			259				259
Gain on unrealized foreign exchange on subsidiary loans			(44	)			(34	)
Gain related to equity securities obtained through search activities			-				(28	)
Losses related to equity accounted associate			113				412
Impairment of fixed assets			560				-
Net gain on recognition of finance lease receivable			(381	)			-
Net gain on lease modification			-				(7,741	)
Changes in working capital			(2,414	)			749
Net cash generated from operating activities			3,629				1,232
Investing activities
Purchase of property and equipment			(391	)			(460	)
Payment of advances			(1,386	)			(1,210	)
Repayment of advances			1,068				-
Sale of marketable securities			-				68
Purchase of term deposits			(4,123	)			-
Purchase of marketable securities			-				(64	)
Net cash used in investing activities			(4,832	)			(1,666	)
Financing activities
Payment of lease liabilities			(1,766	)			(1,930	)
Payment of dividends			(222	)			-
Purchase of treasury shares			(78	)			-
Sublease payments received			-				16
Net cash used in financing activities			(2,066	)			(1,914	)
Effect of exchange rate changes on cash and cash equivalents			71				(71	)
Net decrease in cash and cash equivalents			(3,198	)			(2,419	)
Cash and cash equivalents, beginning of year			19,634				22,053
Cash and cash equivalents, end of period			16,436				19,634

SOURCE: Caldwell Partners International, Inc.

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