The Marketing Alliance Announces Financial Results for Fiscal Third Quarter Ended December 31, 2025

ST. LOUIS, Feb. 13, 2026 (GLOBE NEWSWIRE) -- The Marketing Alliance, Inc. (OTC: MAAL) ("TMA" or the "Company"), announced its financial results today for its fiscal 2026 third quarter ended December 31, 2025.

Q3 FY2026 Financial Key Items (all comparisons to the prior year quarter)

• Revenues from operations were $5,018,127 compared to $4,550,421, an increase of over 10% which was driven by an increase in revenue from the insurance distribution business
• Operating income from continuing operations of $299,637 compared to $(124,345) in the prior year quarter
• Net income was $268,692 or $0.04 per share in the quarter compared to $(164,867) or $(0.02) per share in the prior year quarter
• During the quarter the Company repurchased 117,962 shares, and subsequent to the end of quarter the Company has repurchased an additional 295,959 shares as of January 31, 2026. Repurchases under the program may be made through privately negotiated transactions when the Company is contacted directly or open market transactions (please see the Company's April 2, 2025, press release for more information and important disclosures). The April 2 press release is available on the Company's website

Management Comments
Timothy M. Klusas, TMA's Chief Executive Officer, commented, "We were pleased with the results of this quarter, especially as we were able to show some of the benefits of the investments we have been making in the insurance business. In the quarter we added to our marketing team and continued to invest in technology to communicate with our agencies and provide insights.

As our business continued to evolve, in a previous quarter (ending December 2024) we elected to acknowledge the changing nature of our reimbursement and marketing revenues by recognizing them over their respective projected lives (often the calendar year) instead of when agreed upon and billed. Historically the company treated non-refundable reimbursement and marketing fee revenue from carriers as earned when the agreed upon amount was invoiced. We acknowledged any timing differences of these payments as deferred revenue on the balance sheet. This quarter is the fourth quarter and now a full year since we made this change and it is also reflected in the fiscal year-to-date results.

Although the construction business had a better quarter than in the previous year period, it continued to be adversely affected by delays at a large project. These delays had the added effect of preventing us from being able to work on other projects. While we were better able to manage costs in relation to revenues than last year, this quarter continued to be a challenge."

Third Quarter Fiscal Year 2026 Financial Review

• Revenues were $5,018,127 compared to $4,550,421 in the prior year quarter. An increase in revenue in the insurance distribution business offset a slight decline in revenues in the construction business.
  
• Net operating revenue (gross profit) for the quarter was $1,138,892 compared to net operating revenue of $703,116 in the prior year quarter for an increase of $435,776. The insurance distribution business accounted for most of the increase in gross profit through improved performance in the annuity business and the recalibration of marketing and fee revenue from carriers.
  
• Operating expenses increased this quarter from the prior year quarter, $839,255 compared to $827,462. Increases in compensation expenses were offset by decreases in office and administrative expenses and professional fees, as the Company hired people that previously served as its outsourced bookkeeping and administrative staff. Stock-based compensation expense increased from the prior year quarter offsetting some of the above-mentioned benefits.
  
• The Company reported operating income from continuing operations of $299,637 compared to $(124,345), in the prior year quarter, with differences due to factors discussed above.
  
• Operating EBITDA (excluding investment portfolio income) of $347,951 was an increase from the prior year quarter of $(58,379). A note reconciling operating EBITDA to operating income can be found at the end of this release.
  
• Investment gain (loss), net (from non-operating investment portfolio) for the quarter was $60,684 as compared with $(48,095) in the previous year quarter.
  
• Net income was $268,692, or $0.04 per share, compared to $(164,897) or $(0.02) per share in the previous year quarter.
  
• During the first fiscal quarter, on April 2, 2025, the Company announced that its Board of Directors had authorized a share repurchase program to purchase up to 800,000 shares of the Company's issued and outstanding common stock, effective immediately and concluding March 31, 2026. As of January 31, the Company had repurchased 683,428 shares under this program. The April 2 announcement followed the successful completion of an 800,000 share repurchase program announced in October 2024 and completed March 2025.
  

Balance Sheet Information

• TMA's balance sheet on December 31, 2025, reflected cash and cash equivalents of $1.4 million, working capital of $5.5 million, and shareholders' equity of $5.8 million, compared to cash and cash equivalents of $1.9 million, working capital of $5.7 million, and shareholders' equity of $5.9 million as of December 31, 2024.
  

About The Marketing Alliance, Inc.

Headquartered in St. Louis, MO, TMA provides support to independent insurance brokerage agencies, with a goal of integrating insurance and "insuretech" engagement platforms to provide members value-added services on a more efficient basis than they can achieve individually.

Investor information can be accessed through the shareholder section of TMA's website at:
http://www.themarketingallianceinc.com.

TMA's common stock is quoted on the OTC Markets (http://www.otcmarkets.com) under the symbol "MAAL".

Forward Looking Statements
Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect TMA's business and prospects. Examples of forward-looking statements include, among others, statements we make regarding our expectations of growth based upon our investments in our insurance business, our stock repurchase program, our plans to reduce expenses, and our ability to generate earnings, or reduce expenses, from our construction business. Any forward-looking statements contained in this press release represent our estimates, expectations or intentions only as of the date hereof, or as of such earlier dates as are indicated, and should not be relied upon as representing our views as of any subsequent date. These statements involve a number of risks and uncertainties, including, but not limited to, expectations of the economic environment, material adverse changes in economic conditions in the markets we serve and in the general economy; the ways that insurance carriers may react in their underwriting policies and procedures to the continuing risks they perceive from public health matters; our reliance on a limited number of insurance carriers and any potential termination of those relationships or failure to develop new relationships; privacy and cyber security matters and our ability to protect confidential information; future state and federal regulatory actions and conditions in the states in which we conduct our business; our ability to work with carriers on marketing, distribution and product development; pricing and other payment decisions and policies of the carriers in our insurance distribution business, changes in the public securities markets that affect the value of our investment portfolio; and weather and environmental conditions in the areas served by our construction business. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so.
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Contact:
The Marketing Alliance, Inc.	-OR-	The Equity Group Inc.
Timothy M. Klusas, President		Jeremy Hellman, Vice President
[phone]		[phone]
[e-mail] www.TheMarketingAlliance.com		[e-mail]

CONSOLIDATED STATEMENTS OF OPERATIONS
		Three Months Ended								Nine Months Ended
		December 31,								December 31,
		2025				2024				2025				2024
Insurance commission and fee revenue	-	4,793,365			-	4,273,578			-	13,865,347			-	13,025,595
Construction revenue		224,762				276,843				681,506				966,565
Total revenues		5,018,127				4,550,421				14,546,853				13,992,160
Insurance distributor related expenses:
Distributor bonuses and commissions		3,119,170				2,862,569				9,266,468				8,736,928
Business processing and distributor costs		495,326				604,305				1,554,083				1,441,837
Depreciation		864				934				2,592				5,768
		3,615,360				3,467,808				10,823,143				10,184,533
Costs of construction:
Direct and indirect costs of construction		221,408				315,240				634,779				612,019
Depreciation		42,467				64,257				130,093				189,446
		263,875				379,497				764,872				801,465
Total costs of revenues		3,879,235				3,847,305				11,588,015				10,985,998
Net operating revenue		1,138,892				703,116				2,958,838				3,006,162
General and administrative expenses:		839,255				827,462				2,259,428				2,595,012
Operating income from continuing operations		299,637				(124,345	-			699,410				411,150
Other income (expense):
Other		-				-				-				4,938
Investment gains (losses), net		60,684				(48,095	-			318,684				(24,112	-
Interest		(4,560	-			(28,827	-			(27,401	-			(103,485	-
Income from continuing operations before provision for income taxes		355,761				(201,267	-			990,693				288,491
Income tax expense		87,069				(36,400	-			182,969				101,700
Net Income	-	268,692			-	(164,867	-		-	807,724			-	186,791
Average Shares Outstanding		7,100,126				8,008,081				7,100,126				8,008,081
Operating Income from continuing operations per Share	-	0.04			-	(0.02	-		-	0.10			-	0.05
Net Income per Share	-	0.04			-	(0.02	-		-	0.11			-	0.02

CONSOLIDATED BALANCE SHEETS
		December 31,				December 31,
		2025				2024
ASSETS
CURRENT ASSETS
Cash and cash equivalents	-	1,369,239			-	1,925,398
Equity securities		2,338,047				2,696,783
Restricted cash		-				1,623,127
Accounts receivable		8,144,089				6,125,827
Current portion of notes receivable		20,352				478,712
Prepaid expenses and other current assets		356,191				187,413
Total current assets		12,227,918				13,037,259
PROPERTY AND EQUIPMENT, net		545,269				691,722
OTHER ASSETS
Operating lease right-of-use assets		502,647				173,571
Total other assets		502,647				173,571
	-	13,275,834			-	13,902,552
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses	-	6,501,677			-	4,615,054
Deferred Revenue		6,065				88,324
Current portion of notes payable		108,322				2,388,976
Current portion of finance lease liability		-				109,869
Current portion of operating lease liability		153,484				118,534
Liabilities related to discontinued operations		677				677
Total current liabilities		6,770,225				7,321,434
LONG-TERM LIABILITIES
Notes payable, net of current portion and debt issuance costs		156,959				264,713
Operating lease liability, net of current portion		354,066				56,489
Deferred taxes		149,200				313,000
Total long-term liabilities		660,225				634,202
Total liabilities		7,430,450				7,955,636
COMMITMENTS AND CONTINGENCIES (NOTE 13)
SHAREHOLDERS' EQUITY
Common stock, no par value; 50,000,000 shares authorized, 8,008,081 shares issued and outstanding December 31, 2024
7,100,126 shares issued and outstanding December 31, 2025	-	1,185,462			-	1,154,979
Treasury Stock		(95,148	-			(142,940	-
Retained earnings		4,755,070				4,934,877
Total shareholders' equity		5,845,384				5,946,916
		13,275,834				13,902,552

Note - Operating EBITDA (excluding investment portfolio income)
		Three Months Ended							Nine Months Ended
EBITDA Calculation		December 31,							December 31,
		2025			2024				2025			2024
Operating Income from Continuing Operations	-	299,637		-	(124,345	-		-	699,410		-	411,150
Add:
Depreciation/Amortization Expense	-	48,313		-	65,966			-	147,632		-	207,474
EBITDA (Excluding Investment Portfolio Income)	-	347,951		-	(58,379	-		-	847,042		-	618,624

The Company elects not to include investment portfolio income because the Company believes it is non-operating in nature.

The Company uses Operating EBITDA as a measure of operating performance. However, Operating EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or GAAP, and when analyzing its operating performance, investors should use Operating EBITDA in addition to, and not as an alternative for, income as determined in accordance with GAAP. Because not all companies use identical calculations, its presentation of Operating EBITDA may not be comparable to similarly titled measures of other companies and is therefore limited as a comparative measure. Furthermore, as an analytical tool, Operating EBITDA has additional limitations, including that (a) it is not intended to be a measure of free cash flow, as it does not consider certain cash requirements such as tax payments; (b) it does not reflect changes in, or cash requirements for, its working capital needs; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future, and Operating EBITDA does not reflect any cash requirements for such replacements, or future requirements for capital expenditures or contractual commitments. To compensate for these limitations, the Company evaluates its profitability by considering the economic effect of the excluded expense items independently as well as in connection with its analysis of cash flows from operations and through the use of other financial measures.

The Company believes Operating EBITDA is useful to an investor in evaluating its operating performance because it is widely used to measure a company's operating performance without regard to certain non-cash or unrealized expenses (such as depreciation and amortization) and expenses that are not reflective of its core operating results over time. The Company believes Operating EBITDA presents a meaningful measure of corporate performance exclusive of its capital structure, the method by which assets were acquired, and non-cash charges and provides additional useful information to measure performance on a consistent basis, particularly with respect to changes in performance from period to period.