Mr. Michel Pepin reports

CISCOM SIGNIFICANTLY IMPROVED PROFITS IN Q1 2026

Ciscom Corp. has released its Q1 2026 earnings to provide a positive business update for 2026 and has continued expense reductions, leading to improved profitability.

Ciscom filed its interim consolidated financial statements and management discussion and analysis (MD&A) for the quarter ended March 31, 2026. The financial statements and the related MD&A are available on SEDAR+.

The company achieved sales of $4,966,000 in Q1 2026 versus $6,678,000 in Q1 2025, a decrease of $1,712,000, or 25.6 per cent. Gross profit for Q1 2026 was $1,057,000 versus $1,174,000 in Q1 2025, a minimal reduction of $117,000, or 10.0 per cent. Gross margins significantly improved year over year from 17.6 per cent in Q1 2025 to 21.3 per cent in Q1 2026.

Ciscom improved its cash-based operating profit (earnings before interest, taxes, depreciation and amortization) by $551,000 in Q1 2026 versus 2025 with an EBITDA of $164,000 in Q1 2026 versus a cash-based operating loss of $387,000 in Q1 2025. This performance is in part due to the effectiveness of Ciscom's cost-reduction initiatives, which have saved over $110,000 for the quarter and non-recurring charges in Q1 2025.

For Q1 2026, Ciscom reported a cash-based net income of $108,000 versus a cash-based net loss of $486,000 in Q1 2025, an improvement of $594,000.

The company continues to carry significant non-cash expenses totalling $381,000 in Q1 2026 (2025: $395,000), which include share-based compensation, intangible assets amortization and deferred charges. The company continues to focus on cash flow and improving its working capital.

The company and its subsidiaries have diversified their operations by introducing three new offerings: Engage+, Mixography and Shopography. These digital and analytic offerings supported by artificial intelligence (AI) development will mark the way forward for the business.

"We used 2025 and 2026 to date to reposition and build the company to maintain and advance its premier market positioning," reported Michel Pepin, president, chief executive officer and director of Ciscom. "Operations were further streamlined, and we are introducing AI tools to accelerate our growth. Clients are very pleased with the new offerings and the continued performance of our data-driven analytics, omnichannel media and direct mail services.

"While we have a resilient business, external economic forces, including tariffs, have affected several businesses," continued Mr. Pepin. "As the economy stabilizes and adapts to its new reality, the company is focused on its core mandate. Ciscom continues to be in good standing with its banking partners, reflecting the company's rigorous financial management and governance standards. Looking ahead, Ciscom is poised for further growth, with a focus on new acquisitions, client-centric services and a commitment to operational excellence."

About Ciscom Corp.

Ciscom actively invests in, acquires and manages market-leading companies within the information and communication technology (ICT) sector, with a specialty in adtech (advertising technology) and martech (marketing technology), targeting SMEs (small and medium-sized enterprises) with proven profitability. This approach allows entrepreneurs to monetize their equity and continue contributing, enhancing shareholder value through acquisitions. As a leader in omnimedia, particularly in data-driven marketing, Ciscom, through its subsidiaries, optimizes advertising spend across platforms, ensuring high ROI (return on investment) and customer engagement. Strategic ICT acquisitions bolster service offerings and shareholder value, marking Ciscom as an emergent force in the data-driven and technology market. Ciscom became an issuer in June, 2023, on the Canadian Securities Exchange and October, 2023, on the OTCQB. Ciscom has two subsidiaries, namely Market Focus Direct and Prospect Media Group.

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