CEO.CA Chairman's Briefing

Rewards Division Delivers Growth of 56% for the Quarter

TORONTO, ON / ACCESS Newswire / November 20, 2025 / EQ Inc. (TSXV:EQ) ("EQ Works" or the "Company"), a leader in AI and data-driven software and solutions that empowers brands to better understand their customers and drive high-value acquisition, loyalty and engagement, announced its financial results for the second quarter ended September 30, 2025.

EQ Works reported revenue of $2.5 million for the third quarter, an improvement from the revenue generated during the same period a year ago. Highlights for the three months ended September 30, 2025 include:

• Revenue for the nine months September 30, 2025 increased by 6% over the nine months ended September 30, 2024.

• Gross margin increased to 45%, an improvement from 44% the same period a year ago.

• Adjusted EBITDA for the quarter improved by 38% when compared to the previous year.

• Integrated Rewards (Paymi) division continued to deliver strong results during the quarter resulting in a 56% increase in revenue compared to the same period a year ago.

• Integrated Rewards (Paymi) also continued to attract premium merchants to the platform and continues to be Canada's largest provider of Card-Linked Offers with almost 100 offers being offered.

Businesses across every sector continue to accelerate their demand for data-driven solutions. Whether powering AI innovation, uncovering new revenue opportunities, assessing the competitive landscape, or informing real estate strategies, modern enterprises rely on high-quality data to operate and grow. EQ delivers this by combining proprietary data assets with client first-party data and advanced data science to generate meaningful, actionable results.

Through ongoing product innovation and enhanced data collection, EQ delivers insights that were previously inaccessible and helps clients acquire new customers and expand existing relationships. By leveraging compliant, user-opt-in, real-time data, EQ empowers organizations to make more strategic, data-informed decisions and gain a deeper understanding of the customer journey - driving more effective marketing execution.

Revenue of $2.5 million for the quarter was a modest increase from the same period a year ago, while revenue for the nine months ended September 30, 2025 increased by over 6%. The revenue composition also changed as more strategic engagements were performed resulting in margins increasing to 45% for the quarter.

EQ reported an adjusted EBITDA loss of $91,000, an improvement of 36% compared to Q3 2024. These improvements reflect the Company's disciplined focus on driving more recurring, higher margin revenue, and properly aligning costs and investments with its overall revenue composition.

"This quarter reflects the continued progress of our long-term strategy," said Geoffrey Rotstein, President & CEO of EQ Works. "We are seeing real momentum across the business as demand for data-driven and AI-powered solutions continues to grow. By staying focused on our strategy - expanding our data capabilities, strengthening our recurring revenue base, and driving margin improvement - we are creating a solid foundation for sustainable growth. We are confident in our strategy and believe that the combination of focus, innovation, and operating discipline positions us well for the quarters ahead."

Non-IFRS Financial Measures

EQ Works measures the success of the Company's strategies and performance based on Adjusted EBITDA, which is outlined and reconciled with net loss in the section entitled "Reconciliation of Net Loss for the period to Adjusted EBITDA" in the MD&A. The Company defines Adjusted EBITDA as net loss from operations before: (a) depreciation of property and equipment and amortization of intangible assets, (b) share-based payments, (c) finance income and costs, net, (d) restructuring costs. Management uses Adjusted EBITDA as a measure of the Company's operating performance because it provides information on the Company's ability to provide operating cash flows for working capital requirements, capital expenditures, and potential acquisitions. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in its industry.

The non-IFRS financial measure is used in addition to, and in conjunction with, results presented in the Company's consolidated financial statements prepared in accordance with IFRS and should not be relied upon to the exclusion of IFRS financial measures. Management strongly encourages investors to review the Company's consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-IFRS financial measures are not standardized, it may not be possible to compare these financial measures with other companies non-IFRS financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-IFRS adjustments described above, and exclusion of these items from the Company's non-IFRS measures should not be construed as an inference that these costs are unusual, infrequent, or non-recurring.

The table below reconciles net loss from operations and Adjusted EBITDA for the periods presented:

About EQ Works

EQ Works (www.eqworks.com) enables businesses to understand, predict, and influence customer behaviour. Using unique data sets, advanced analytics, machine learning and artificial intelligence, EQ Works creates actionable intelligence for businesses to attract, retain, and grow the customers that matter most. The Company's proprietary SaaS platform mines insights from movement and geospatial data, enabling businesses to close the loop between digital and real-world consumer actions.

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Certain statements contained in this press release constitute "forward-looking statements". All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company's future financial position and results of operations, strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions, or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's expectations, estimates, and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks, and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied, or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance, or achievements to differ materially include, but are not limited to, the risk factors discussed in the Company's MD&A for the three and six months ended June 30, 2024. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives but cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and any other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect subsequent information, events, or circumstances or otherwise, except as required by law.

EQ Inc.
Michael Kahn, Chief Financial Officer
press@eqworks.com

SOURCE: EQ Inc.