Toronto, Ontario--(Newsfile Corp. - June 1, 2026) - Yangaroo Inc. (TSXV: YOO) ("Yangaroo", "Company"), a software leader in media asset workflow and distribution solutions, today announced its financial results for the first quarter ended March 31, 2026. The first quarter financial statements and corresponding management's discussion and analysis (the "First Quarter Filings") are available at www.yangaroo.com and on the Company's profile at www.sedarplus.ca. Please note that all currency in this press release is denominated in United States dollars, unless otherwise noted.
Total revenue for the quarter declined modestly by $49,054, or 3%, year over year. The decrease was primarily driven by a major advertising customer reducing their media schedule for traditional linear television so far for 2026, along with lower music video delivery volumes following a major broadcaster's temporary shift away from music video programming, which has now come back online. These declines are partially offset by increased spending from both existing and new customers. The Company maintained strong operational service levels throughout the quarter, successfully onboarded new clients, and continued expanding its legal clearance platform and service capabilities across both the United States and Canada while maintaining operational efficiencies.
For the three months ended March 31, 2026, the Company reported operating loss of $2,129 and Normalized EBITDA of $257,606, compared to operating income of $24,526 and Normalized EBITDA of $264,251 for the same quarter of 2025.
Grant Schuetrumpf, President and CEO of Yangaroo, commented, "We are excited to announce our fifteenth consecutive quarter of positive Normalized EBITDA, which we see as a testament to our stable operations and unwavering commitment to exceptional client service. As we move through 2026, we remain focused on driving growth through expanded customer relationships, investing in our technology platform, and executing on strategic growth initiatives.
As the advertising landscape continues to evolve across linear, streaming, and digital platforms, we believe clients increasingly value trusted partners that can simplify complex workflows through a unified platform. During the quarter, we continued investing in a single unified platform and service approach, improving operational automation, legal clearance capabilities, and integrated workflow solutions designed to enhance scalability, efficiency, and long-term client value. We remain disciplined in balancing strategic investment with operational performance as we position Yangaroo for continued growth.
In our Music and Awards divisions, we continued to build on our relationships with key industry partners while supporting a broad range of entertainment initiatives. Our Awards platform continues to provide stable recurring revenue opportunities through long-standing client relationships expanding on our submission and adjudication workflow to now incorporate fan vote capabilities, while our Music division remains focused on expanding promotional and distribution capabilities across music track and music videos distribution now that a significant broadcaster has brought back its music video programming. We believe these divisions continue to reinforce Yangaroo's broader position as a trusted technology partner across the advertising and entertainment industries."
Q1'2026 Financial Highlights
Revenue in Q1'2026 was $1,733,004 compared to $1,782,058 and $2,100,187 in the first quarter of 2025 and the fourth quarter of 2025, respectively.
Revenue decreased by $49,054, or 3%, versus Q1'2025. The decrease in revenue was primarily driven by lower Advertising and Music revenue, with a decrease of $96,388, or 7%, and $32,952, or 15%, respectively, slightly offset by higher Awards revenue year over year with an increase of $80,286, or 50%.
Revenue decreased by $367,183, or 17%, versus Q4'2025. The decrease in revenue was primarily attributed to lower Advertising revenue of $345,141, or 21%, as well as decreased Awards revenue of $39,467, or 14%, offset by higher Music revenue with an increase of $17,425, or 10%. This decrease in revenue is primarily related to seasonality with the fourth quarter typically being the highest volume and spend period.
Operating expenses in Q1'2026 were $1,735,133 compared to $1,757,532 and $1,810,720 in the first quarter of 2025 and the fourth quarter of 2025, respectively.
Operating expenses decreased by $22,399, or 1%, versus Q1'2025. The decrease in operating expenses was primarily attributed to reductions across general and administrative and technology expenses, offset by slightly higher salary and marketing expenses.
Operating expenses decreased by $75,587, or 4%, versus Q4'2025. The decrease in operating expenses was primarily attributed to cost control initiatives which resulted in lower general and marketing expenses.
Fifteenth consecutive quarter of positive Normalized EBITDA: the Company generated $257,606 of Normalized EBITDA in Q1'26, $589,541 of Normalized EBITDA in Q4'25, $152,906 of Normalized EBITDA in Q3'25, $220,909 of Normalized EBITDA in Q2'25, $264,251 of Normalized EBITDA in Q1'25, $540,504 of Normalized EBITDA in Q4'24, $466,458 of Normalized EBITDA in Q3'24, $337,818 of Normalized EBITDA in Q2'24, $237,581 of Normalized EBITDA in Q1'24, $211,061 of Normalized EBITDA in Q4'23, $266,269 of Normalized EBITDA in Q3'24, $541,952 of Normalized EBITDA in Q2'23, $116,293 of Normalized EBITDA in Q1'23, $833,974 of Normalized EBITDA in Q4'22, and $1,927 of Normalized EBITDA in Q3'22.
Normalized EBITDA in Q1'2026 was $257,606 in comparison to Normalized EBITDA of $264,251 in Q1'2025 and Normalized EBITDA of $589,541 in Q4'2025.
Normalized EBITDA decreased by $6,645, or 3%, compared to Q1'2025. The decrease was primarily attributed to decreased revenue and was partially offset by a reduction in operating expenses resulting from Management's operational optimization strategy.
Normalized EBITDA decreased by $331,935, or 56%, compared to Q4'2025. The decrease was primarily attributed to seasonality with the fourth quarter typically being the highest volume and spend period.
Financial Highlights
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | ||||||||||||||
| Cash | $ | 213,427 | $ | 161,112 | $ | 160,165 | $ | 271,234 | |||||||||
| Working Capital Deficiency | ($1,186,909 | ) | ($1,255,379 | ) | ($2,033,182 | ) | ($2,140,887 | ) | |||||||||
| Liquidity | $ | 788,589 | $ | 764,301 | $ | 645,044 | $ | 656,059 | |||||||||
| Revenue | $ | 1,733,004 | $ | 2,100,187 | $ | 1,572,017 | $ | 1,651,441 | |||||||||
| Operating Expenses | $ | 1,735,133 | $ | 1,810,720 | $ | 1,667,626 | $ | 1,670,218 | |||||||||
| Other Expenses (Income) | ($39,999 | ) | ($421,426 | ) | ($166,455 | ) | $ | 255,720 | |||||||||
| Income Tax Expense | $ | 321 | $ | 36,949 | $ | 1,407 | $ | 6,671 | |||||||||
| After-Tax Income (Loss) for the Period | $ | 37,549 | $ | 673,944 | $ | 69,439 | ($281,168 | ) | |||||||||
| Income (Loss) per Share - Basic | $ | 0.00 | $ | 0.01 | $ | 0.00 | ($0.00 | ) | |||||||||
| Income (Loss) per Share - Diluted | $ | 0.00 | $ | 0.01 | $ | 0.00 | ($0.00 | ) | |||||||||
| EBITDA | $ | 343,062 | $ | 1,080,991 | $ | 361,515 | $ | 63,051 | |||||||||
| EBITDA Margin % | 19.80% | 51.47% | 23.00% | 3.82% | |||||||||||||
| Normalized EBITDA * | $ | 257,606 | $ | 589,541 | $ | 152,906 | $ | 220,909 | |||||||||
| Normalized EBITDA Margin % * | 14.86% | 28.07% | 9.73% | 13.38% | |||||||||||||
| Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | ||||||||||||||
| Cash | $ | 217,088 | $ | 231,083 | $ | 105,906 | $ | 86,118 | |||||||||
| Working Capital Deficiency | ($1,900,378 | ) | ($1,841,495 | ) | ($1,787,761 | ) | ($1,932,157 | ) | |||||||||
| Liquidity | $ | 686,618 | $ | 717,583 | $ | 550,386 | $ | 378,358 | |||||||||
| Revenue | $ | 1,782,058 | $ | 2,241,659 | $ | 1,942,525 | $ | 1,949,689 | |||||||||
| Operating Expenses | $ | 1,757,532 | $ | 1,950,878 | $ | 1,593,542 | $ | 1,838,985 | |||||||||
| Other Expenses (Income) | $ | 152,424 | ($92,194 | ) | $ | 179,406 | $ | 118,863 | |||||||||
| Income Tax Expense (Recovery) | $ | 909 | ($97,327 | ) | - | $ | 120,872 | ||||||||||
| After-Tax Income (Loss) for the Period | ($128,807 | ) | $ | 480,302 | $ | 169,577 | ($129,031 | ) | |||||||||
| Income (Loss) per Share - Basic | ($0.00 | ) | $ | 0.01 | $ | 0.00 | ($0.00 | ) | |||||||||
| Income (Loss) per Share - Diluted | ($0.00 | ) | $ | 0.01 | $ | 0.00 | ($0.00 | ) | |||||||||
| EBITDA | $ | 158,596 | $ | 651,570 | $ | 374,900 | $ | 307,730 | |||||||||
| EBITDA Margin % | 8.90% | 29.07% | 19.30% | 15.78% | |||||||||||||
| Normalized EBITDA* | $ | 264,251 | $ | 540,504 | $ | 466,458 | $ | 337,818 | |||||||||
| Normalized EBITDA Margin % * | 14.83% | 24.11% | 24.01% | 17.33% | |||||||||||||
* A non-IFRS measure. See "Non-IFRS financial measures" for definitions and reconciliation of non-IFRS measures to the relevant IFRS measures
About Yangaroo
Yangaroo is a technology provider in the media and entertainment industry, offering a cloud-based software platform for the management and distribution of digital media content. Yangaroo's Digital Media Distribution System ("DMDS") platform is a patented cloud-based platform that provides customers with a centralized and fully integrated workflow directly connecting radio and television broadcasters, digital display networks, and video publishers for centralized digital asset management, delivery, and promotion. DMDS is used across the advertising, music, and entertainment awards show markets.
Yangaroo Inc. is a publicly listed company incorporated on July 28, 1999, under the laws of Ontario as Musicrypt.com Inc. and changed to its present name on July 17, 2007. Yangaroo trades on the TSX Venture Exchange ("TSX-V") under the symbol YOO.
The address of the Company's corporate office and principal place of business is 360 Dufferin Street, Suite 203, Toronto, Ontario, M6K 1Z8.
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For Yangaroo Investor Inquiries:
Grant Schuetrumpf
President and CEO
Ph: (416) 534 0607
investors@yangaroo.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 accuracy of this release.
Use of Non-IFRS Financial Measures
The following non-IFRS definitions are used in the press release because management believes that they provide useful information regarding the Company's ongoing operations. Readers are cautioned that the definitions are not recognized measures under IFRS, do not have standardized meanings prescribed by IFRS, and should not be construed to be alternatives to revenues and net earnings determined in accordance with IFRS or as an indicator of performance, liquidity, or cash flows. The Company's method of calculating these measures may differ from the methods used by other entities and accordingly, these measures may not be comparable to similarly titled measures used by other entities or in other jurisdictions.
EBITDA as defined by the Company means Earnings Before Interest and financing costs (net of interest income), Income Taxes, Depreciation and Amortization. EBITDA is derived from the statements of net and comprehensive income (loss) and can be computed as revenues less salaries and consulting expenses, technology and production expenses, marketing and promotion expenses, general and administrative expenses, remeasurement contingent consideration, remeasurement of embedded derivate liability, foreign exchange gain (loss), and any non-recurring items such as restructuring expenses, gain from settlement, government subsidies and acquisition fees.
Normalized EBITDA, as defined by the Company, means EBITDA adjusted for one-time non-recurring or non-cash items such as share-based compensation, restructuring fees, acquisition fees, foreign-exchange gain (loss), remeasurement of embedded derivative liability, remeasurement on contingent consideration and gain from settlement.
EBITDA Margin and Normalized EBITDA Margin as defined by the Company means EBITDA and Normalized EBITDA, respectively, as a percentage of revenue.
Working capital as defined by the Company means current assets less current liabilities.
Liquidity as defined by the Company means cash plus the available capacity in the Company's revolving credit facility.
The Company believes EBITDA, EBITDA margin, liquidity, and working capital, are useful measures because they provide information to both management and investors with respect to the operating and financial performance of the Company.
Cautionary Note Regarding Forward-looking Statements
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes.
Forward looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of Yangaroo, that may cause the actual results, level of activity, performance or achievements of Yangaroo to be materially different from those expressed or implied by such forward looking statements, including but not limited to: the use of proceeds of the offering, receipt of all necessary approvals of the offering, general business, economic, competitive, political and social uncertainties; negotiation uncertainties and other risks of the technology industry. Although Yangaroo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Yangaroo's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, Yangaroo assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299678
Source: Yangaroo Inc.
