- VIQ Solutions reports Adjusted EBITDA up 64% and 46% for the three and nine months ended September 30, 2026, respectively, compared to the prior periods.
- VIQ Solutions' Australian operations ceased on July 17, 2026 and are now being reported as discontinued operations in VIQ's financial statements.
- Management and capital resources are now focused on growing the Company's North American & UK operations and enhancing its technology.
Richmond Hill, Ontario--(Newsfile Corp. - November 12, 2026) - VIQ Solutions Inc. (TSXV: VQS) ("VIQ" or "the Company"), a global leader in AI-powered digital documentation, today announced financial results for the three and nine months ended September 30, 2026. The Company reported continued margin expansion and positive Adjusted EBITDA.
As previously reported, VIQ's Australian division was placed into voluntary administration pursuant to Part 5.3A of the Corporations Act 2001 (Australia) in March 2026 (the "Voluntary Administration"). The sale or recapitalization process related to VIQ Australia was unsuccessful and VIQ Australia ceased operations on July 17, 2026. On August 5, 2026, the administrators were appointed as liquidators of VIQ Australia, and the liquidators expect to complete the liquidation within the next six to eight months.
Three months ended September 30, 2026 Financial Highlights
- Revenue: $5.2 million, up 1% from the same period in the prior year, primarily driven by higher software license sales.
- Gross Margin: 70.0%, up from 65.5% for the same period in the prior year, driven by higher margin sales and productivity gains.
- Adjusted EBITDA: $1.4 million, an increase of 64% from the same period in the prior year, marking the tenth consecutive quarter of positive Adjusted EBITDA.
- Adjusted Operating Loss: $11,000, compared to a $2.2 million loss in the same period of the prior year.
Nine months ended September 30, 2026 Financial Highlights
- Revenue: $15.2 million, flat with the same period in the prior year.
- Gross Margin: 66.9%, up from 65.9% in the same period of the prior year, driven by higher margin sales and productivity gains.
- Adjusted EBITDA: $3.2 million, an increase of $1.0 million or 46% from the same period in the prior year, reflecting sustained cost discipline and efficiency gains.
- Adjusted Operating Loss: $1.2 million, compared to $4.3 million adjusted operating loss in the same period of the prior year.
VIQ's management is focused on growing the Company's operations in North America and the United Kingdom.
"While we will continue to execute on the cost reduction plan through the balance of the year, we are now focused on growing revenue in North America and the United Kingdom, both organically and through strategic acquisitions," said Larry Taylor, CEO, VIQ Solutions. "We are also focusing on enhancing our technology. We recently announced that we have partnered with Canadian venture studio AXL to introduce a breakthrough in identifying who is speaking in multi-speaker recordings, now with 97% to 99% accuracy - a near-perfect performance benchmark. We also recently announced the launch of NetScribe Live, a recording and streaming platform built for recorded proceedings."
VIQ is also announcing that it is issuing restricted share units ("RSUs") of the Corporation covering a total of 1,500,000 common shares of the Corporation under its omnibus equity incentive plan to certain insiders of the Company. All of the RSUs will vest following the one-year anniversary of the grant date.
A copy of the Company's unaudited financial statements and accompanying MD&A for the three and nine months ended September 30, 2026 (collectively, the "Financial Information") will be available under the Company's profile on SEDAR+ at www.sedarplus.ca.
Media Contact:
Larry Taylor, CEO, VIQ Solutions
(800) 263-9947
Jacob Manning, VIQ Solutions
Email: marketing@viqsolutions.com
For more information about VIQ, please visit viqsolutions.com.
About VIQ Solutions
VIQ Solutions is a global provider of secure, AI-driven, digital voice and video capture technology and transcription services. VIQ offers a seamless, comprehensive solution suite that delivers intelligent automation, enhanced with human review, to drive transformation in the way content is captured, secured, and repurposed into actionable information. The cyber-secure, AI technology and services platform are implemented in the most rigid security environments including criminal justice, legal, insurance, government, corporate finance, media, and transcription service provider markets, enabling them to improve the quality and accessibility of evidence, to easily identify predictive insights and to achieve digital transformation faster and at a lower cost.
Forward-Looking Statements
Certain statements included in this press release constitute forward-looking statements or forward-looking information (collectively, "forward-looking statements") under applicable securities legislation. Such forward-looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Forward-looking statements typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking statements in this press release include but are not limited to statements with respect to the Company's ability to accelerate automation, optimize costs, and improve scalability in the future, expected margin improvement, the Company's focus and its priorities, the filing of the Financial Information on SEDAR+ and expected future Adjusted EBITDA improvement.
Forward-looking statements are based on several factors and assumptions which have been used to develop such statements, but which may prove to be incorrect. Although VIQ believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on forward-looking statements because VIQ can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding, among other things, recent initiatives, cost savings from workforce and product optimization, cost reductions from the Company's workflow solutions and that sales and prospects may increase revenue. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions that have been used.
Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that while considered reasonable by the Company as of the date of this press 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 to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the Company's ability to continue as a going concern, the existing event of default and covenant non-compliance under the Company's secured debt facility and the lender's right to demand or accelerate repayment, the Company's ability to obtain covenant relief, refinancing or additional capital, the outcome of the liquidation of VIQ Australia, and the factors described in greater detail in the "Risk Factors" section of the Company's management's discussion and analysis for the year ended December 31, 2025 and for the three and nine months ended September 30, 2026 and in the Company's other materials filed with the Canadian securities regulatory authorities.
These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. Such estimates and assumptions may prove to be incorrect or overstated. The forward-looking statements contained in this press release are made as of the date of this press release and the Company expressly disclaims any obligations to update or alter such statements, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
VIQ Solutions Inc.
Interim Condensed Consolidated Statements of Financial Position
(Expressed in USD dollars, unaudited)
| September 30, 2026 | December 31, 2025 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash | $ | 3,036,367 | $ | 2,445,011 | ||
| Trade and other receivables, net of allowance for doubtful accounts | 2,301,113 | 4,284,491 | ||||
| Income tax recoverable | 74,221 | - | ||||
| Inventories | 29,874 | 31,088 | ||||
| Prepaid expenses and deposits | 537,074 | 797,778 | ||||
| 5,978,649 | 7,558,368 | |||||
| Non-current assets | ||||||
| Restricted cash | - | 271,134 | ||||
| Right-of-use assets | 23,084 | 46,718 | ||||
| Intangible assets | 1,586,686 | 1,730,999 | ||||
| Goodwill | 7,076,484 | 7,089,897 | ||||
| Total assets | $ | 14,664,903 | $ | 16,697,116 | ||
| Liabilities | ||||||
| Current liabilities | ||||||
| Trade and other payables and accrued liabilities | $ | 6,099,428 | $ | 5,987,570 | ||
| Income tax payable | 132,098 | 51,832 | ||||
| Derivative warrant liability | - | 1,297 | ||||
| Current portion of long-term debt | 20,386,253 | 18,806,332 | ||||
| Current portion of lease obligations | 439,045 | 417,619 | ||||
| Current portion of contract liabilities | 1,122,738 | 1,211,312 | ||||
| 28,179,562 | 26,475,962 | |||||
| Non-current liabilities | ||||||
| Long-term lease obligations | 510,017 | 757,597 | ||||
| Other long-term liabilities | 759,365 | 810,381 | ||||
| Total liabilities | 29,448,944 | 28,043,940 | ||||
| Shareholders' equity (deficiency) | ||||||
| Capital stock | 79,106,353 | 78,979,646 | ||||
| Contributed surplus | 10,370,909 | 10,333,374 | ||||
| Accumulated other comprehensive loss | (2,637,347 | ) | (1,771,595 | ) | ||
| Deficit | (101,623,956 | ) | (98,888,249 | ) | ||
| Total shareholders' equity (deficiency) | (14,784,041 | ) | (11,346,824 | ) | ||
| Total liabilities and shareholders' equity (deficiency) | $ | 14,664,903 | $ | 16,697,116 | ||
VIQ Solutions Inc.
Interim Condensed Consolidated Statements of Loss and Comprehensive Loss
(Expressed in USD dollars, unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Revenue | $ | 5,216,160 | $ | 5,183,592 | $ | 15,218,919 | $ | 15,165,143 | ||||
| Cost of sales | 1,566,290 | 1,789,467 | 5,031,538 | 5,172,815 | ||||||||
| Gross profit | 3,649,870 | 3,394,125 | 10,187,381 | 9,992,328 | ||||||||
| Expenses | ||||||||||||
| Selling and administrative expenses | 2,203,293 | 2,309,754 | 6,577,323 | 7,230,834 | ||||||||
| Research and development expenses | 33,816 | 225,314 | 379,452 | 545,790 | ||||||||
| Stock-based compensation | 71,196 | 39,711 | 185,306 | 331,576 | ||||||||
| Loss (gain) on revaluation of RSUs | 105 | (133 | ) | (270 | ) | (19,686 | ) | |||||
| Loss (gain) on revaluation of the derivative warrant liability | 300 | (28,272 | ) | (974 | ) | (27,034 | ) | |||||
| Foreign exchange (gain) loss | (41,071 | ) | (101,979 | ) | (198,345 | ) | 33,946 | |||||
| Depreciation | 7,790 | 17,001 | 23,370 | 52,257 | ||||||||
| Amortization | 250,281 | 544,222 | 809,841 | 1,759,495 | ||||||||
| Interest expense | 473,092 | 428,145 | 1,401,532 | 1,272,575 | ||||||||
| Accretion and other financing costs | 572,154 | 559,085 | 1,676,176 | 1,434,144 | ||||||||
| Loss on modification of debt | - | 730,877 | - | 730,877 | ||||||||
| Restructuring costs | 104,749 | 801,575 | 408,175 | 803,343 | ||||||||
| Strategic review costs (recovery) | - | (300,000 | ) | - | 994,726 | |||||||
| Other income | (3,039 | ) | (877 | ) | (8,845 | ) | (4,766 | ) | ||||
| Total expenses | 3,672,666 | 5,224,423 | 11,252,741 | 15,138,077 | ||||||||
| Current income tax expense (recovery) | (11,349 | ) | 35,624 | 134,824 | 122,557 | |||||||
| Income tax expense | (11,349 | ) | 35,624 | 134,824 | 122,557 | |||||||
| Net loss from continuing operations | $ | (11,447 | ) | $ | (1,865,922 | ) | $ | (1,200,184 | ) | $ | (5,268,306 | ) |
| Discontinued operations Net income (loss) from discontinued operations, net of tax | (4,165,375 | ) | 179,451 | (1,535,523 | ) | 814,095 | ||||||
| Total net loss for the period | $ | (4,176,822 | ) | $ | (1,686,471 | ) | $ | (2,735,707 | ) | $ | (4,454,211 | ) |
| Exchange (loss) gain on translation of foreign operations - continuing operations | (14,706 | ) | (155,047 | ) | (116,208 | ) | 255,588 | |||||
| Exchange loss on translation of foreign operations - discontinued operations | (127,847 | ) | (116,720 | ) | (749,544 | ) | (512,328 | ) | ||||
| Comprehensive loss for the period | $ | (4,319,375 | ) | $ | (1,958,238 | ) | $ | (3,601,459 | ) | $ | (4,710,951 | ) |
| Net income (loss) per share | ||||||||||||
| Continuing operations - basic | (0.00 | ) | (0.03 | ) | (0.02 | ) | (0.10 | ) | ||||
| Continuing operations - diluted | (0.00 | ) | (0.03 | ) | (0.02 | ) | (0.10 | ) | ||||
| Discontinued operations - basic | (0.06 | ) | 0.00 | (0.02 | ) | 0.02 | ||||||
| Discontinued operations - diluted | (0.06 | ) | 0.00 | (0.02 | ) | 0.02 | ||||||
| Total - basic | (0.06 | ) | (0.03 | ) | (0.04 | ) | (0.08 | ) | ||||
| Total - diluted | (0.06 | ) | (0.03 | ) | (0.04 | ) | (0.08 | ) | ||||
| Weighted average common shares outstanding - basic | 70,516,135 | 53,838,971 | 70,258,586 | 52,917,557 | ||||||||
| Weighted average common shares outstanding - diluted | 70,516,135 | 53,838,971 | 70,258,586 | 52,917,557 | ||||||||
The following is a reconciliation of net loss to Adjusted EBITDA, the most directly comparable IFRS measure for the three and nine months ended September 30, 2026, and 2025:
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| (Unaudited) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net loss | (11,447 | ) | (1,865,922 | ) | (1,200,184 | ) | (5,268,306 | ) | ||||
| Add: | ||||||||||||
| Depreciation | 7,790 | 17,001 | 23,370 | 52,257 | ||||||||
| Amortization | 250,281 | 544,222 | 809,841 | 1,759,495 | ||||||||
| Interest expense | 473,092 | 428,145 | 1,401,532 | 1,272,575 | ||||||||
| Current income tax expense (recovery) | (11,349 | ) | 35,624 | 134,824 | 122,557 | |||||||
| EBITDA | 708,367 | (840,930 | ) | 1,169,383 | (2,061,421 | ) | ||||||
| Accretion and other financing costs | 572,154 | 559,085 | 1,676,176 | 1,434,144 | ||||||||
| Loss on modification of debt | - | 730,877 | - | 730,877 | ||||||||
| Loss (gain) on revaluation of RSUs | 105 | (133 | ) | (270 | ) | (19,686 | ) | |||||
| Loss (gain) on revaluation of the derivative warrant liability | 300 | (28,272 | ) | (974 | ) | (27,034 | ) | |||||
| Restructuring costs | 104,749 | 801,575 | 408,175 | 803,343 | ||||||||
| Strategic review costs (recovery) | - | (300,000 | ) | - | 994,726 | |||||||
| Other income | (3,039 | ) | (877 | ) | (8,845 | ) | (4,766 | ) | ||||
| Stock-based compensation | 71,196 | 39,711 | 185,306 | 331,576 | ||||||||
| Foreign exchange (gain) loss | (41,071 | ) | (101,979 | ) | (198,345 | ) | 33,946 | |||||
| Adjusted EBITDA | 1,412,761 | 859,057 | 3,230,604 | 2,215,704 | ||||||||
The following is a reconciliation of net loss to adjusted operating loss, the most directly comparable IFRS measure for the three and nine months ended September 30, 2026, and 2025:
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| (Unaudited) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net loss | (11,447 | ) | (1,865,922 | ) | (1,200,184 | ) | (5,268,306 | ) | ||||
| Add: | ||||||||||||
| Strategic review costs (recovery) | - | (300,000 | ) | - | 994,726 | |||||||
| Adjusted operating loss | (11,447 | ) | (2,165,922 | ) | (1,200,184 | ) | (4,273,580 | ) | ||||
Non-IFRS Measures
The Company prepares its financial statements in accordance with IFRS. Non-IFRS measures are provided by management to provide additional insight into our performance and financial condition. VIQ believes non-IFRS measures are an important part of the financial reporting process and are useful in communicating information that complements and supplements the consolidated financial statements.
Adjusted EBITDA and adjusted operating loss are not measures recognized by IFRS and do not have standardized meanings prescribed by IFRS. Therefore, Adjusted EBITDA and adjusted operating loss may not be comparable to similar measures presented by other issuers. Investors are cautioned that Adjusted EBITDA and adjusted operating loss should not be construed as alternatives to net income (loss) as determined in accordance with IFRS. For a reconciliation of net income (loss) to Adjusted EBITDA and adjusted operating loss please see the Company's MD&A for three and nine months ended September 30, 2026.
To evaluate the Company's operating performance as a complement to results provided in accordance with IFRS, the term "Adjusted EBITDA" refers to earnings before stock-based compensation, depreciation, amortization, interest expense, accretion and other financing costs, loss on modification of debt, loss or gain on revaluation RSUs, loss or gain on revaluation of derivative warrant liability, restructuring costs, other income, foreign exchange (gain) loss, strategic review costs (recovery), and current and deferred income tax expense (recovery). We believe that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of the Company.
We believe that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, impairment of goodwill and intangibles, loss on modification or extinguishment of debt, other expense (income), and foreign exchange (gain) loss. Accordingly, we believe that this measure may also be useful to investors in enhancing their understanding of the Company's operating performance.
The term "adjusted operating loss" refers to net income (loss) excluding the impact of strategic review costs. Management believes it is appropriate to adjust for this item because strategic review costs do not relate to operating activities of the Company and is useful supplemental information as it provides an indication of the results generated by the Company's main business activities. The presentation of this measure enables investors and analysts to better understand the underlying performance of our business activities.
Trademarks
This press release includes trademarks, such as "NetScribe", which are protected under applicable intellectual property laws and are the property of VIQ. Solely for convenience, our trademarks referred to in this press release may appear without the or TM symbol, but such references are not intended to indicate, in any way, that we will not assert our rights to these trademarks, trade names, and services marks to the fullest extent under applicable law. Trademarks that may be used in this press release, other than those that belong to VIQ, are the property of their respective owners.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/323830