Mr. Santhosh Kumar reports

ADVANTEX ANNOUNCES Q3 2025 FINANCIAL RESULTS

Advantex Marketing International Inc. today released its financial results for the third quarter ended March 31, 2025. All results are reported under international financial reporting standards (IFRS) and in Canadian dollars, unless otherwise specified.

Key financial highlights:

• Revenue: Total revenue for Q3 2025 was $1.05-million, an increase of 38 per cent from $760,000 in Q3 2024. The growth was driven by business generated through new broker relationships and continued uptake in the Aeroplan program.
• Gross profit: Gross profit for Q3 2025 was $760,000, compared with $220,000 in Q3 2024. The increase in the current quarter is a direct representation of the increase in top-line revenue. Q3 2024 was lower due to the bad debt incurred during that quarter.
• EBITDA (before interest, taxes, depreciation, and amortization): Income from operations before interest and non-cash expenses was $330,000, up from a loss of $190,000 in Q3 2024, which was due to higher bad debt during that quarter.
• Net loss: Net loss for Q3 2025 was $450,000, compared with $960,000 in Q3 2024. The increase in net loss was mainly due to the higher one-off bad debt incurred during that quarter.

Merchant cash advance (MCA) program:

• Revenue from the MCA program was $520,000, slightly down from $550,000 in Q3 2024.
• The company continues to expand its transaction credits, which grew by $2.18-million in the quarter. This growth was a direct result of business generated through new broker relationships.
• Enhanced credit risk monitoring was implemented to mitigate potential losses amid ongoing economic uncertainty.

Aeroplan program:

• Revenue from the Aeroplan program grew 159 per cent to $540,000 in Q3 2025, compared with $210,000 in Q3 2024.
• The increase was driven by higher merchant participation and the continued success of the MCA Aeroplan product.

Strategic and operational highlights:

• Gross margin improvements: The company continues to refine its operations, maintaining stable margins in the Aeroplan program and addressing delinquent accounts in the MCA program in a timely manner.
• Capital management: In December, 2024, the company successfully secured agreements to defer interest payments on its 9 per cent 2025 debentures, ensuring continued support for the MCA program growth and strengthening the company's liquidity position. The company was in compliance with the reset financial covenants at March 31, 2025.
• Expense management: Selling, general and administrative (SG&A) expenses increased by only 4 per cent compared with Q3 2024, reflecting continuing cost control measures.

Outlook

Advantex remains committed to growing its MCA and Aeroplan programs while optimizing operational efficiencies. With inflation stabilizing and anticipated interest rate reductions from the Bank of Canada, the company is cautiously optimistic about future growth. However, challenges remain, including economic headwinds and the potential need for additional capital to expand its MCA program.

About Advantex Marketing International Inc.

Advantex is a leading provider of merchant cash advance services to small independent merchants across Canada. The company also operates a partnership with Aeroplan, offering businesses the opportunity to provide Aeroplan points to their customers. Advantex is listed on the Canadian Securities Exchange under the symbol ADX.

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