Revenue increased 11% year-over-year to $44.3 million
Total debt reduced by $5.3 million
(All figures in US dollars, unless otherwise indicated)
Toronto, Ontario--(Newsfile Corp. - May 29, 2026) - Ionik Corporation (TSXV: INIK) (OTCQB: INIKF) (the "Company" or "Ionik"), a data and technology-driven marketing platform, today announced financial results for the three months ended March 31, 2026, highlighting continued revenue growth across both operating divisions, continued debt reduction, and further progress on platform integration.
Q1 2026 Financial Highlights
Revenue of $44.3 million, up 11% from $39.9 million in the same period of the prior year ("Q1 2025"), driven by growth in both the Media Activation and Marketing Optimization divisions.
Gross profit of $15.6 million, representing a 35% margin, compared to $16.8 million and a 42% margin in Q1 2025. The decrease in gross margin primarily reflects higher media acquisition costs, due to customer and channel mix within the Marketing Optimization division.
Adjusted EBITDA1 of $5.8 million, compared to $6.3 million in Q1 2025. The decrease is primarily attributable to lower gross margin.
Adjusted Free Cash Flow1 of $5.7 million representing a 99% Adjusted Free Cash Flow conversion rate1, compared to $6.0 million and a 96% Adjusted Free Cash Flow conversion rate1 in Q1 2025.
Net loss after tax from continuing operations of $1.1 million or $(0.00) per basic and diluted share, compared to a net loss of $3.5 million or $(0.01) per basic and diluted share in Q1 2025.
No amounts drawn on the Company's $10.0 million revolving credit facility as at March 31, 2026.
Total undiscounted debt reduced to $111.4 million as at March 31, 2026, compared to $116.7 million in total debt as at December 31, 2025.
Cash as at March 31, 2026 was $5.8 million, compared to $11.3 million as at December 31, 2025. Senior debt net of cash was $58.3 million as at March 31, 2026, compared to $58.0 million as at December 31, 2025 and $68.5 million as at September 30, 2025.
Total undiscounted debt as at March 31, 2026 was $111.4 million, including $64.1 million of senior lender debt, $39.1 million of convertible debt, $5.2 million in a vendor take-back loan, and $3.0 million in a working capital note, compared to total undiscounted debt of $116.7 million as at December 31, 2025.
Management believes the Company's cash flow generation, undrawn revolving credit facility, and ongoing debt reduction initiatives position it well to execute its strategic priorities.
1Please refer to "Non-IFRS Measures" section of this press release
Subsequent Events
Subsequent to quarter end, on May 22, 2026, the Company secured a 30-day extension from its senior lenders under its existing syndicated debt facility. The maturity date was amended from May 25, 2026, to June 25, 2026, providing additional time to finalize a longer-term financing solution.
The Company is actively negotiating a new syndicated debt facility to replace the existing facility. In connection with proposed new facility, the Company intends to pursue a comprehensive debt reorganization designed to address legacy acquisition-related indebtedness, amend outstanding debt instruments and accrued obligations, simplify the Company's capital structure, and strengthen its overall financial position.
Ted Hastings, Ionik's CEO commented:
"Q1 2026 reflected continued revenue growth across both of our operating divisions, supported by healthy demand and the ongoing benefits of our integrated platform. While gross margin was impacted by higher media acquisition costs during the quarter, we remained focused on operating discipline, cash flow generation, platform integration, and continued debt reduction. Our priorities remain consistent: driving profitable growth, and cash flow, advancing integration across our Marketing Optimization and Media Activation platforms, strengthening the balance sheet, and aligning the business with the accelerating pace of AI-driven technology and data-driven marketing. We are also actively negotiating a new syndicated debt facility, which will further improve our balance sheet and help surface equity value."
Non-IFRS Measures
The Company prepares its financial statements in accordance with International Financial Reporting Standards ("IFRS"). However, the Company considers certain non-IFRS financial measures as useful additional information to assess its financial performance. These measures, which it believes are widely used by investors, securities analysts and other interested parties to evaluate its performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include "Adjusted EBITDA" and "Adjusted Free Cash Flow".
Adjusted EBITDA and Adjusted Free Cash Flow
Consolidated adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is a non-IFRS measure of financial performance. Company management defines Adjusted EBITDA as IFRS Net income (loss) adding back finance costs, income taxes, depreciation and amortization, gain/loss on disposal of assets and extinguishment of loans, fair value gain/loss on financial liabilities and modification/extinguishment on loans, and excludes discontinued operations and the effects of significant items of income and expenditure which may have an impact on the quality of earnings, such as impairments where the impairment is the result of an isolated, non-recurring event. It also excludes the effects of equity-settled share-based payments, foreign exchange gains/losses, and other extraordinary one-time expenses, such as transaction costs and other severance and restructuring costs. See reconciliation of Adjusted EBITDA in the table below.
Company management defines "Adjusted Free Cash Flow" as Adjusted EBITDA less capital expenditures, such as acquisition of property and equipment and additions to intangibles for capitalized development costs, and income taxes paid during the period. Similarly, Management defines "Adjusted Free Cash Flow conversion rate" as Adjusted Free Cash Flow divided by Adjusted EBITDA. See reconciliation of Adjusted Free Cash Flow in the table below.
The presentation of these non-IFRS financial measures are not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with IFRS and may be different from non-IFRS financial measures used by other companies.
Management believes Adjusted EBITDA and Adjusted Free Cash Flow are useful financial metrics to assess its operating performance on a cash basis before the impact of non-cash and extraordinary one-time items.
The following tables presents the Company's calculation of Adjusted EBITDA and Adjusted Free Cash Flow for each period:
| For the three months ended | ||||||||||||
| March 31, | December 31, | September 30, | June 30, | |||||||||
| 2026 | 2025 | 2025 | 2025 | |||||||||
| Net loss | $ | (1,105 | ) | $ | (26,898 | ) | $ | (1,039 | ) | $ | (2,437 | ) |
| Add: | ||||||||||||
| Finance costs | 2,874 | 4,167 | 4,623 | 4,949 | ||||||||
| Income tax expense | (1,388 | ) | 6,923 | 312 | 1,785 | |||||||
| Depreciation and amortization | 4,740 | 5,878 | 4,684 | 4,685 | ||||||||
| Impairment loss on goodwill and intangibles | - | 29,525 | - | - | ||||||||
| Fair value (gain) loss on financial liabilities | (93 | ) | (9,632 | ) | 207 | 594 | ||||||
| Gain on disposal of assets | - | (1,039 | ) | - | - | |||||||
| Share-based compensation expense | 182 | 221 | 106 | 130 | ||||||||
| Extraordinary one-time expenses (recovery) | 501 | 553 | 360 | (206 | ) | |||||||
| Foreign exchange (gain) loss | 89 | 69 | (23 | ) | 96 | |||||||
| Non-recurring income | (30 | ) | (10 | ) | (3 | ) | (53 | ) | ||||
| Adjusted EBITDA1 | $ | 5,770 | $ | 9,757 | $ | 9,227 | $ | 9,543 | ||||
| Less: | ||||||||||||
| Acquisition of property and equipment | (4 | ) | (1 | ) | (4 | ) | (16 | ) | ||||
| Additions to intangible assets | (60 | ) | (69 | ) | (70 | ) | (75 | ) | ||||
| Taxes paid | (14 | ) | (53 | ) | (87 | ) | (1,889 | ) | ||||
| Adjusted Free Cash Flow1 | $ | 5,692 | $ | 9,634 | $ | 9,066 | $ | 7,563 | ||||
| For the three months ended | ||||||||||||
| March 31, | December 31, | September 30, | June 30, | |||||||||
| 2025 | 2024 | 2024 | 2024 | |||||||||
| Net income (loss) | $ | (3,542 | ) | $ | (8,014 | ) | $ | (2,574 | ) | $ | 342 | |
| Add: | ||||||||||||
| Finance costs | 4,546 | 4,483 | 3,094 | 2,651 | ||||||||
| Income tax (recovery) expense | 521 | (3,380 | ) | 1,072 | 1,635 | |||||||
| Depreciation and amortization | 4,703 | 5,864 | 3,675 | 3,285 | ||||||||
| Impairment loss on intangibles and goodwill | - | 5,847 | - | - | ||||||||
| (Gain) loss on disposal of assets | - | 83 | (110 | ) | (2,772 | ) | ||||||
| Fair value (gain) loss on financial liabilities | (478 | ) | 1,651 | (33 | ) | - | ||||||
| Gain on modification of loan | - | (16 | ) | - | - | |||||||
| Share-based compensation expense | 163 | 30 | 202 | 186 | ||||||||
| Extraordinary one-time expenses | 240 | 894 | 497 | 344 | ||||||||
| Foreign exchange (gain) loss | 133 | (57 | ) | 134 | 98 | |||||||
| Non-recurring income | (33 | ) | (50 | ) | (44 | ) | (17 | ) | ||||
| Adjusted EBITDA1 | $ | 6,253 | $ | 7,335 | $ | 5,913 | $ | 5,752 | ||||
| Less: | ||||||||||||
| Acquisition of property and equipment | (13 | ) | (12 | ) | (6 | ) | (12 | ) | ||||
| Additions to intangible assets | (76 | ) | (75 | ) | (70 | ) | (69 | ) | ||||
| Taxes paid | (144 | ) | (2,447 | ) | (406 | ) | (1,865 | ) | ||||
| Adjusted Free Cash Flow1 | $ | 6,020 | $ | 4,801 | $ | 5,431 | $ | 3,806 | ||||
Financial Statements and MD&A
Ionik's Financial Statements and Management's Discussion and Analysis for the three months ended March 31, 2026, are posted on its corporate website at www.ionikgroup.com and available on the Company's profile on SEDAR+ at www.sedarplus.ca.
About Ionik
Ionik is a technology-driven marketing platform powered by proprietary first-party data and AI, enabling scalable customer acquisition and monetization across its Marketing Optimization and Media Activation divisions.
Additional information about the Company is available at www.sedarplus.ca.
Ionik Corporation
Sean Peasgood
Investor Relations
(647) 777-7564
Sean@SophicCapital.com
Jeff Collins
CFO
(416) 583-5918
invest@ionikgroup.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
Certain information in this news release constitutes forward-looking statements and forward-looking information under applicable Canadian securities legislation (collectively, "forward-looking information"). Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. Forward-looking information includes, but is not limited to, statements with respect to the business, financials and operations of the Company. Forward-looking information in this press release includes statements with respect to the Company's sufficiency of its capital position to execute on business and operational strategies, successful integration of acquisitions, operational and financial growth strategy, ability to make debt repayments, expected Adjusted Free Cash Flow and anticipated success in customer adoption of its marketing platform. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events. Forward looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements and future events to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the public documents of the Company available at www.sedarplus.ca. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Investors are cautioned that undue reliance should not be placed on any such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299457
Source: Ionik Corporation
