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Record Run Rate Revenue of $231 Million and 46% Growth in Alaris Net Distributable Cash Flow

CALGARY, Alberta, Nov. 03, 2026 (GLOBE NEWSWIRE) -- Alaris Equity Partners Income Trust (together, as applicable, with its subsidiaries, “Alaris” or the "Trust") is pleased to announce its results for the three and nine months ended September 30, 2026. All amounts below are in Canadian dollars unless otherwise noted.

Third Quarter Highlights

• Strong Growth in Cash Flow: Alaris net distributable cash flow ⁽¹⁾ increased 46.4% to $54.7 million, or $1.19 per unit (+45.1%), compared to Q3 2025, supported by a 25.9% increase in Partner distributions to $72.2 million, including US$13.8 million of common distributions from Fleet Advantage, LLC ("Fleet") (+34% year-over-year).
• Record Run Rate Revenue: Estimated next-twelve-month Run Rate Revenue ⁽⁶⁾ increased 10.8% to a record $231.0 million, compared to $208.4 million at June 30, 2026, reflecting new investments and contractual distribution resets.
• Partner Revenue Exceeds Guidance: Q3 Partner revenue exceeded previous guidance by 5.3%, reaching $72.9 million versus the $69.2 million forecast, driven by new investment contributions, higher common Partner distributions and favourable foreign exchange rates.
• Strong Distribution Coverage: The year-to-date Payout Ratio ⁽⁵⁾ improved to 45.1% from 54.4% in the prior year period, while the estimated Run Rate Payout Ratio ⁽⁸⁾ is approximately 63%, remaining below Alaris' long-term target range of 65%–70% and providing financial flexibility to support future investment activity.
• Significant Capital Deployment: Alaris deployed $188.0 million during Q3 2026, comprising US$95.0 million invested in Nexus Medical Enterprises, LLC (“Nexus”) and US$35.0 million in TESCO – The Eastern Specialty Company, LLC (“TESCO”), bringing total new invested capital to $265.1 million year to date.
• Expanded Financial Capacity: Alaris completed a $115.0 million bought deal equity offering and increased commitments under its senior credit facility from US$450.0 million to US$500.0 million, providing additional financial flexibility to support future investment activity.
• Portfolio Performance: The portfolio expanded to a record 26 Partners, with a weighted average Earnings Coverage Ratio ("ECR") ⁽³⁾ of approximately 1.5x, and 16 Partners having no senior debt or senior leverage below 1.0x EBITDA.
• Non-Cash Fair Value Adjustments: Q3 results included $58.9 million of net unrealized fair value losses on Partner investments, reflecting higher market interest rates and Partner-specific valuation changes, resulting in a quarterly net loss of $6.2 million despite 25.9% growth in Partner distributions.
• Net Book Value: Net book value ⁽⁴⁾ per unit was $24.87 at September 30, 2026, compared to $25.83 at June 30, 2026. The $0.96 quarterly decrease reflected a $0.14 per-unit comprehensive loss, $0.39 per unit of distributions, and $0.43 per unit of dilution from the September equity offering. Net book value ⁽⁴⁾ per unit increased $0.08 year to date.
  

“The growth of net distributable cashflow in our third quarter represents the effects of the last twelve months of record deployment into strong new investments for Alaris. Likewise, the growth that we are showing to this point in 2026 will lead to strength in our 2027 outlook. The environment in the private equity and private debt markets in the US is quite soft, which leads to a significant competitive advantage for Alaris in that we continue to have access to capital and quality deal flow. The flipside to the industry softness is that it’s a sub-optimal environment to be selling assets so we temper our expectations for potential exits in the short term. This puts into focus the advantage of the Alaris preferred equity structure which gives us an above market cash return while we wait for an optimal exit market to return. Most importantly, the strength of our portfolio continues to show itself during these volatile times. While the increase in interest rates had a non-cash impact on our carrying values, it is not having a material impact on our underlying portfolio, which has very little debt imbedded in it.” said Steve King, President and CEO.

Results of Operations

Revenue and Operating Performance

Total revenue and operating income decreased 95.9% to $3.1 million in Q3 2026, compared to $74.9 million in Q3 2025, primarily reflecting net unrealized fair value losses on Partner investments in the current quarter compared to gains in the prior-year period. Approximately 60% of the $58.9 million net unrealized fair value loss was attributable to changes in risk-free interest rates, which increased the discount rates applied in certain investment valuations. The remaining fair value adjustments primarily reflected changes in individual Partner outlooks.

Despite the non-cash valuation adjustments, Total Partner distribution revenue ⁽⁹⁾ increased 25.9% to $72.2 million, supported by contributions from investments completed in 2025 and 2026, including Kubik Inc (“Kubik”), TESCO and Nexus, and higher common distributions from Fleet. The Annualized distribution yield on preferred capital invested ⁽²⁾ was 12.5%, compared to 12.4% in Q3 2025.

Earnings / Loss and Net Book Value

Comprehensive loss was $6.2 million in Q3 2026, compared to comprehensive income of $86.0 million in Q3 2025, reflecting net unrealized fair value adjustments on Partner investments and foreign exchange movements.

Net book value ⁽⁴⁾ per unit decreased $0.96 to $24.87 at September 30, 2026, from $25.83 at June 30, 2026. The decrease comprised a comprehensive loss of $0.14 per unit, distributions of $0.39 per unit and dilution of $0.43 per unit associated with the September equity offering. The offering increased total unitholders' equity and provided additional capital to support investment activity. Net book value ⁽⁴⁾ per unit increased $0.08 during the first nine months of 2026.

Cash Flow and Capital Allocation

Cash used in operations, prior to changes in working capital, was $85.7 million in Q3 2026, compared to cash generated of $16.8 million in Q3 2025. The change primarily reflected cash movements between the Trust and the Acquisition Entities, which includes the net proceeds from September’s equity offering. The Trust’s investments in the Acquisition Entities are used to repay outstanding debt and to fund further investments, which in Q3 2026 included TESCO and Nexus. These movements affect the Trust's reported operating cash flows and should be distinguished from the cash generated by Partner investments.

Alaris net distributable cash flow ⁽¹⁾, which incorporates the relevant cash flows of the Trust and Acquisition Entities, increased 46.4% to $54.7 million, primarily reflecting higher Partner distribution revenue and lower cash taxes, partially offset by higher finance costs. The year-to-date Payout Ratio ⁽⁵⁾ was 45.1%, compared to 54.4% in the prior year period. The estimated Run Rate Payout Ratio ⁽⁸⁾ is approximately 63%, reflecting current assumptions and the increased unit count following the September equity offering.

Outlook

Management expects Total Partner revenue ⁽⁹⁾ of approximately $53 million in Q4 2026, compared to $72.9 million in Q3 2026. The sequential decrease primarily reflects the timing and variability of common Partner distributions received during Q3. Actual results may vary based on the timing and amount of common distributions declared by Partners.

Estimated next-twelve-month Run Rate Revenue ⁽⁶⁾ is approximately $231 million, reflecting current Partner agreements and applicable assumptions. The estimated Run Rate Payout Ratio ⁽⁸⁾ is approximately 63%, excluding the impact of potential future investments.

Alaris’ financial statements and MD&A are available on SEDAR+ at www.sedarplus.ca and on our website at www.alarisequitypartners.com.

Earnings Release Date and Conference Call Details

Alaris management will host a conference call at 10am Alberta Time (ABT) / 11am ET, Wednesday, November 4, 2026 to discuss the financial results and outlook for the Trust.

Participants must register for the call using this link: Q3 2026 Conference Call. Pre-register to receive the dial-in numbers and unique PIN to access the call seamlessly. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call). Participants can access the webcast here: Q3 Webcast. A replay of the webcast will be available two hours after the call and archived on the same web page for six months. Participants can also find the link on our website, stored under the “Investors” section – “Presentations and Events”, at www.alarisequitypartners.com.

An updated corporate presentation will be posted to the Trust’s website within 24 hours at www.alarisequitypartners.com.

About the Trust:

Alaris’ investment and investing activity refers to providing, through the Acquisition Entities, structured equity to private companies (“Partners”) to meet their business and capital objectives, which includes management buyouts, dividend recapitalization, growth and acquisitions. Alaris achieves this by investing its unitholder capital, as well as debt, through the Acquisition Entities, in exchange for distributions, dividends or interest as well as capital appreciation on both preferred and common equity. The principal objective is to generate predictable cash flows for distribution payments to its unitholders while growing net book value through returns from capital appreciation. Distributions, other than common equity Distributions, from the Partners are adjusted annually based on the percentage change of a “top-line” financial performance measure such as gross margin or same store sales and rank in priority to common equity position.

Non-GAAP and Other Financial Measures

The terms Alaris net distributable cash flow, Net book value, Earnings Coverage Ratio, Run Rate Payout Ratio, Annualized distribution yield on preferred capital invested, Payout Ratio, Run Rate Revenue, Run Rate Cash Flow, and Per Unit amounts (collectively, the “Non-GAAP and Other Financial Measures”) are not standardized financial measures under International Financial Reporting Standards (“IFRS”). Management believes these measures provide useful supplemental information to investors. The Trust’s method of calculating the Non-GAAP and Other Financial Measures may differ from the methods used by other issuers. Therefore, the Trust’s Non-GAAP and Other Financial Measures may not be comparable to similar measures presented by other issuers.

Readers are encouraged to review the Trust’s financial statements and MD&A, complete versions of which are available on SEDAR+ at www.sedarplus.ca.

(1) “Alaris net distributable cash flow”

A Non-GAAP financial measure management uses which represents external revenue generated by both the Trust and the Acquisition Entities, less:

• general and administrative expenses,
• transaction costs,
• third-party interest expense, and
• cash taxes paid (or received).

This metric aligns most closely with Cash from / (used in) operations, prior to changes in working capital, but includes the net cash flows of the Acquisition Entities. Investors use this measure to provide a comprehensive view of cash available for distributions, debt repayment, or reinvestment.

(2) “Annualized distribution yield on preferred capital invested”

A supplementary financial measure calculated by dividing Partner distribution revenue – preferred, annualized for the period, by the weighted average preferred unit capital invested over the period. Management uses this measure to monitor preferred investment distributions over time, relative to the current investment base, making it a useful tool for investors to track the cash yield of preferred investments

(3) “Earnings Coverage Ratio (“ECR”)”

A supplementary financial measure calculated as each Partner’s EBITDA divided by the sum of its debt servicing (interest and principal), unfunded capital expenditures, and distributions to Alaris. Management monitors ECR to assess a Partner’s ongoing ability to meet its contractual obligations to Alaris. ECR is a useful metric for investors as it provides an indication of a Partner’s financial health and sustainability.

(4) “Net book value” and “net book value per unit”

A supplementary financial measure equal to total assets minus total liabilities (equity value of the Trust). The per unit figure divides that amount by the units outstanding at period end. These metrics measure growth in equity value, net of distributions, and enable period-over-period comparison of value creation. Investors find this metric useful because it provides a clear indication of the underlying value of the Trust attributable to unitholders and the period over period value generated.

(5) “Payout Ratio”

A Non-GAAP financial ratio used by management which represents total cash distributions paid to unitholders during the period, divided by Alaris net distributable cash flow for the same period. This metric is useful to investors as it reflects the proportion of available cash used to pay distributions and indicates the capacity for reinvestment or debt repayment.

(6) “Run Rate Revenue”

A forward-looking supplementary financial measure estimating expected revenue over the next twelve months based on current Partner contracts and known management or transaction fees, excluding potential Partner redemptions. It may include estimated common dividends or distributions based on historical practice. Run Rate Revenue provides investors with an indication of forward annualized revenue potential. Forward-looking Non-GAAP measures reflect management’s current expectations and are subject to the risks and assumptions described under Forward-Looking Statements.

(7) “Run Rate Cash Flow”

A forward-looking supplementary financial measure that outlines the net cash from operating activities, net of distributions paid, that Alaris is expecting to have over the next twelve months. This measure is comparable to Net cash from / (used in) operating activities, less distributions paid, as outlined in Alaris’ consolidated statements of cash flows. Investors find this measure useful because it provides insight into the expected cash available for reinvestment, debt repayment, or other corporate purposes after distributions. Forward-looking Non-GAAP measures reflect management’s current expectations and are subject to the risks and assumptions described under Forward-Looking Statements.

(8) “Run Rate Payout Ratio”

A forward-looking supplementary financial measure calculated as the distributions per unit expected to be paid to unitholders over the next twelve months, divided by the estimated net cash from operating activities per unit presented in the Outlook's Run Rate Cash Flow table. Management uses this measure to assess the sustainability of unitholder distributions and the proportion of expected operating cash flow allocated to those distributions. The remaining cash flow is available for debt repayment, additional investments or other corporate purposes. Forward-looking Non-GAAP measures reflect management's current expectations and are subject to the risks and assumptions described under Forward-Looking Statements.

(9) “Total Partner distribution revenue”

A supplementary financial measure summing Partner distribution revenue – preferred and Partner distribution revenue – common, which are components of Net gain / (loss) on Corporate Investments as disclosed in Note 3 of the accompanying financial statements. Management believes this measure provides useful information for investors on the total cash yield from Partner distributions during the period.

(10) “Per Unit” values, other than Net book value per unit, refer to the related financial statement caption as defined under IFRS or related term as defined herein, divided by the weighted average basic units outstanding for the period.

Forward-Looking Statements

This news release contains forward-looking information and forward-looking statements (collectively, “forward-looking statements”) within the meaning of applicable securities laws, including any applicable safe harbor provisions. Statements other than statements of historical fact contained in this news release may constitute forward-looking statements, including, without limitation, management’s expectations, intentions and beliefs concerning the growth, results of operations, performance of the Trust and the Partners, the future financial position or results of the Trust, and the business strategy, plans and objectives of or involving the Trust or the Partners.

Forward-looking statements may be identified by words such as “believe”, “expects”, “will”, “intends”, “projects”, “anticipates”, “estimates”, “continues” or similar expressions, including the negative thereof.

Specific Forward-Looking Statements

In particular, this news release contains forward-looking statements regarding, among other matters:

• the anticipated financial and operating performance of the Partners;
• the attractiveness of Alaris’ capital offering;
• the Trust’s total Partner revenue, Run Rate Payout Ratio, Run Rate Cash Flow and Run Rate Revenue;
• the impact of recent new investments and follow-on investments;
• expectations regarding the receipt and amount of any common equity distributions or dividends from Partners in which Alaris holds common equity, including the impact on the Trust’s net cash from operating activities;
• the amount and impact of future capital deployment and the Trust’s ability to deploy capital;
• expected gains on common equity investments and future exits;
• the yield on the Trust’s investments and expected resets on Distributions;
• changes in interest rates and foreign exchange rates;
• the impact of deferred distributions and the timing of repayment thereof;
• the Trust’s return on its investments;
• Alaris’ expenses for the next twelve months; and
• Expected growth in Alaris’ distribution to its unitholders.
  

Financial Outlook and Future-Oriented Financial Information

To the extent any forward-looking statements herein constitute a financial outlook or future-oriented financial information (collectively, “FOFI”), including estimates regarding revenues, Distributions from Partners (including restarting full or partial distributions and common equity distributions), Run Rate Payout Ratio, Run Rate Cash Flow, net cash from operating activities, expenses and the impact of capital deployment, such information has been approved by management as of the date hereof and has been included to provide readers with an understanding of Alaris’ expected financial performance. Such information may not be appropriate for other purposes and is subject to the same risks, uncertainties and assumptions described herein.

There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur.

Assumptions Underlying Forward-Looking Statements

Forward-looking statements require Alaris to make assumptions and are subject to inherent risks and uncertainties. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that performance may affect Alaris’ business and that of its Partners (including, without limitation, the impact of global health crises such as COVID-19 and global economic and political factors, including new and ongoing conflicts in Europe and the middle east) are material factors considered by management when establishing expectations for the Trust.

Key assumptions include, but are not limited to, assumptions that:

• the Russia/Ukraine conflict, the Iran conflict, other conflicts in the Middle East and other global economic pressures will not materially impact Alaris, its Partners or the global economy;
• interest rates and tax rates will not rise materially different from prevailing market expectations over the next twelve months;
• global health crises such as COVID-19 or variants thereof will not materially impact the economy or the operations of the Partners over the next twelve months;
• the businesses of the majority of the Partners will continue to grow;
• more private companies will require access to alternative sources of capital;
• the businesses of new Partners and existing Partners will perform in line with Alaris’ expectations and diligence; and
• Alaris will have the ability to raise required equity and/or debt financing on acceptable terms.
  

Management has also assumed that the Canadian and U.S. dollar exchange rate will remain within approximately plus or minus 15% of the current rate over the next six months. In determining expectations for economic growth, management considers historical economic data provided by Canadian and U.S. government agencies as well as prevailing economic conditions at the time of such determinations.

Risks and Uncertainties

Forward-looking statements are subject to risks, uncertainties and assumptions and should not be read as guarantees or assurances of future performance. Actual results of the Trust and the Partners could differ materially from those anticipated as a result of various risk factors, including, but not limited to:

Economic and External Risks

• global health crises such as COVID-19 or variants;
• global economic factors including the Russia/Ukraine conflict, the Iran conflict, other conflicts in the Middle East, inflationary pressures and global supply chain disruptions; and
• tariffs and international trade disputes affecting the Trust or the Partners.
  

Partner and Portfolio Risks

• dependence of Alaris on the Partners;
• risks relating to the Partners and their respective businesses;
• material changes in the operations of a Partner or the industries in which they operate;
• changes in the ability of Partners to continue to pay Distributions or restart Distributions (in full or in part); and
• failure to collect deferred Distributions.
  

Financing and Structural Risks

• leverage and restrictive covenants under credit facilities;
• failure to complete or realize the anticipated benefits of financing arrangements with Partners; and
• inability to close additional Partner contributions or collect redemption proceeds on anticipated terms.
  

Operational and Regulatory Risks

• reliance on key personnel;
• failure to obtain required regulatory approvals on a timely basis or at all;
• changes in legislation, regulations and their interpretations;
• failure to settle outstanding litigation on expected terms or at all;
• risks associated with unaudited information provided to the Trust by the Partners; and
• cybersecurity risks or risks associated with the implementation of artificial intelligence.

Additional risks that may cause actual results to vary from those indicated are discussed under the headings “Risk Factors” and “Forward-Looking Statements” in Alaris’ Management Discussion and Analysis (“MD&A”) and Annual Information Form (“AIF”), which is or will be (in the case of the AIF) available under Alaris’ profile at www.sedarplus.ca and on the Trust’s website at www.alarisequitypartners.com.

Caution Regarding Reliance

Readers are cautioned that the assumptions used in the preparation of forward-looking statements, including FOFI, although considered reasonable at the time of preparation, may prove to be inaccurate. Accordingly, undue reliance should not be placed on forward-looking statements.

Except as required by applicable law, Alaris undertakes no obligation to update or revise any forward-looking statements.

For more information please contact:

Investor Relations
Alaris Equity Partners Income Trust

403-260-1457
ir@alarisequity.com