Vancouver, British Columbia--(Newsfile Corp. - November 6, 2025) - Dominion Lending Centres Inc. (TSX: DLCG) ("The DLC Group" or the "Corporation") today announced financial results for the three and nine months ended September 30, 2025. The DLC Group is one of Canada's leading franchisors of mortgage professionals, with a national network of over 9,000 agents. The Corporation also owns Newton Connectivity Systems Inc., a financial technology company that provides an integrated end-to-end operating platform, Velocity, designed to automate and streamline the entire mortgage application, approval, underwriting and funding process.

Financial Highlights for Q3 2025:

• Funded mortgage volumes grew 19% to $23.5 billion over Q3 2024;
• Revenue grew 20% year-over-year with Q3 2025 revenues at $26.4 million while Q3 2024 revenues were $22.1 million;
• Adjusted EBITDA of $14.2 million rose 16% compared to $12.2 million in Q3 2024;
• Net income for the quarter increased 70% to $9.0 million compared to $5.2 million in Q3 2024;
• Adjusted net income for the quarter reached $9.0 million, a 139% increase from Q3 2024 at $3.8 million;
• Broker adoption of Velocity increased to 85% compared to 73% in the same quarter last year;
• A quarterly dividend of $0.04 per share was paid on September 15, 2025; and
• Repurchased 865,947 shares for cancellation in the third quarter.

"While the Canadian housing market had a slow start in 2025, we saw activity levels start to improve in the spring, which continued into the third quarter. This improvement, coupled with the continued strength in the renewal market and our unwavering focus on growth, enabled the DLC Group to generate another strong quarter in Q3 2025", commented Mr. Gary Mauris, Chairman and CEO.

"During the third quarter we hosted our bi-annual Sales Conference in Whistler, British Columbia. This year's event was a great success, as we welcomed over 700 of our broker and franchise partners, as well as lenders, suppliers and industry partners. Productivity was a key theme at the conference with meaningful collaboration focused on increasing customer engagement and leveraging AI to expand our reach and enhance our broker network's productivity. With our adoption rate of Velocity reaching a record 85% in the third quarter, we are now well positioned to leverage this leading-edge platform across our network to help our brokers further increase their market share", continued Mr. Mauris.

"We continue to maintain our positive outlook for the remainder of 2025, although we are facing some tougher comparison quarters in fourth quarter as well as Q1 2026, given the strong growth achieved at the end of last year and early 2025. As we start to move our focus to 2026, we look forward to continuing to execute on our growth pillars, while taking advantage of the continued strength in the renewal market. As always, our focus remains on generating strong profitability, maintaining the strength of our balance sheet and generating strong shareholder value." concluded Mr. Mauris.

Third Quarter 2025 Financial Summary

(1) Please see the Non-IFRS Financial Performance Measures section of this document for additional information.
(2) Adjusted EBITDA and Adjusted EBITDA margin includes a loss from our equity-accounted investment in Heartwood of $0.3 million and $1.0 million for the three and nine months ended September 30, 2025, respectively. Excluding the loss from Heartwood, Adjusted EBITDA margin would have been 55% and 51% for the three and nine months ended September 30, 2025, respectively.

Key Performance Indicators ("KPIs")

(1) Funded mortgage volumes are presented in billions and are a key performance indicator that allows us to measure performance against our operating strategy.
(2) The number of franchises and brokers are as at the respective period end date (not in thousands).
(3) Representing the percentage of the DLC Group's funded mortgage volumes that were submitted through Velocity.

Third Quarter 2025 Financial Review:

The DLC Group continued to generate strong results during the third quarter with strength in the mortgage renewal market as well as improved activity in the housing market. The third quarter results also reflect successful execution across our strategic growth initiatives, namely our focus on recruitment, adoption of Velocity, and expanding our addressable market size. While we experienced additional costs related to our bi-annual National Sales Conference in the quarter, we generated strong Adjusted EBITDA growth and maintained our strong balance sheet.

• Revenue increased 20% from Q3 2024 to $26.4 million, driven by a 19% increase in funded mortgage volume from Q3 2024, and an increase in the adoption of Velocity across our broker network to 85% from 72% in Q3 2024. The growth in funded mortgage volume resulted from several different factors, including the growth in our broker network, an increase in broker productivity, and continued strength in the Canadian residential mortgage renewal market.

• Revenue from Franchise and Brokering of Mortgages increased 11% year over year, while Newton revenue rose 45%. Beginning in the second quarter of 2025, revenue generated from a third-party supplier was reclassified from Franchise to Newton revenue. The third quarter impact was a $0.3 million increase in Newton revenue and a corresponding $0.3 million decrease in Franchise revenue. In addition to the impact from the reclassification, Franchise and Brokering of Mortgages revenue grew at a slower rate than funded mortgage volumes reflecting the influence of certain revenue components that do not directly correlate with funded mortgage volumes.

• General and administrative expenses increased 27%, or $2.0 million, over Q3 2024. The increase was largely due to the timing of advertising expenses including costs associated with the 2025 bi-annual DLC Group National Sales Conference, which occurred in September 2025 and totalled approximately $0.7 million. Also contributing to the increase in expenses was higher personnel costs and higher IT-related costs. On a percent-of-revenue basis, general and administrative expenses increased to 36.6% from 34.5% in Q3 2024, with the increase associated with the timing of events costs that were incurred in the quarter. Direct costs decreased 6% over Q3 2024 from lower advertising fund expenditures due to timing of advertising initiatives. On a percent-of-revenue basis, direct costs declined to 9.5% in Q3 2025 from 12.1% in Q3 2024.

• Adjusted EBITDA grew 16% to $14.2 million compared to Q3 2024, and Adjusted EBITDA margins remained relatively consistent at 54% compared to 55% last year. Adjusted EBITDA margins benefited from the strength of Newton revenue, partly offset by higher operating expenses due to timing of advertising and event expenses. Adjusted EBITDA for Q3 2025 includes a $0.3 million loss from our equity-accounted investment in Heartwood, which began operations in Q2 2025.

• Net income of $9.0 million increased from $5.3 million in Q3 2024 due to the higher revenue and the decrease in finance expense related to the preferred share liability, partly offset by higher operating expenses and a loss on equity-accounted investments. The loss on equity-accounted investments includes a $0.3 million loss on Heartwood.

• Adjusted diluted earnings per common share increased to $0.11 in Q3 2025 up from $0.08 in Q3 2024. Adjusted net income increased to $9.0 million from $3.8 million in Q3 2024 representing an increase of 139%, mainly due to higher revenue, strong margin performance, and no longer having Preferred Shareholders in 2025 or their related attributed income.

• Cash flow from operating activities decreased 17% to $9.3 million from Q3 2024 levels, as the increase in income from operations was more than offset by cash used in non-cash working capital due to timing of payments.

• The strong cash flow from operations, coupled with full retention of free cash flow following the conclusion of Preferred Shareholder allocations, resulted in $9.5 million in free cash flow attributable to common shareholders compared to $5.6 million in Q3 2024, a 70% increase.

• The Corporation ended the quarter with adjusted total debt-to-EBITDA (on a trailing twelve-month basis) of 0.61x compared to 0.70x at the same period last year.

• The Corporation paid a dividend of $0.04 per share on September 15, 2025, to shareholders of record on September 2, 2025.

2025 Year-to-Date Financial Review

The DLC Group's performance for the year-to-date period was generally consistent with Q3 trends. The year-to-date period reflects continued revenue growth, as well as strong profitability and cash flow.

• Revenue increased 28% from year-to-date September 30, 2024, to $69.8 million, and was driven by a 28% increase in funded mortgage volume from 2024, as well as an increase in the adoption of Velocity across our broker network to 82% from 71% in 2024. Consistent with our Q3 quarterly results, the strong funded mortgage volume growth was the result of an increase in the number of brokers in our network, internal initiatives to leverage Velocity to increase broker productivity, and growth in the Canadian mortgage renewal market.

• Revenue from Franchise and Brokering of Mortgages increased 18% while Newton revenue rose 57%. The change in classification of a third-party supplier revenue from Franchise to Newton positively impacted Newton revenue and in turn negatively impacted Franchise revenue by $1.0 million year-to-date.

• General and administrative expenses increased 19% or $4.3 million over 2024 levels, with the increase stemming from: two brokerage acquisitions completed in Q2 2024, timing of advertising expenses including costs associated with the bi-annual 2025 DLC Group National Sales Conference (approximately $0.7 million), and higher personnel costs and IT-related costs. The additional general and administrative expenses from the two acquired brokerages was $1.4 million for the nine months ended September 30, 2025. On a percent-of-revenue basis, general and administrative expense declined to 38.6% from 41.5% in 2024, and direct costs increased 8% over 2024 levels stemming from higher advertising fund expenditures due to timing of advertising initiatives and from costs that are tied directly to movement in royalty revenues.

• Adjusted EBITDA grew 35% to $34.8 million compared to 2024 while Adjusted EBITDA margins increased to 50% from 47% last year. Adjusted EBITDA margins benefited from the strength of Newton revenue as well as the decline in operating expenses as a percent of revenue. Adjusted EBITDA for 2025 includes a $1.0 million loss from our equity-accounted investment in Heartwood, which commenced operations in Q2, 2025.

• Net income of $23.0 million increased from $12.0 million in 2024 due to the higher revenue, the reduction of finance expense related to the preferred share liability, and a gain on sale of an equity-accounted investment, partly offset by higher operating expenses and a loss on equity-accounted investments. The loss on equity-accounted investments includes a $1.0 million loss on Heartwood.

• Adjusted net income increased to $21.7 million from $7.8 million in 2024 or up 178%, mainly due to higher revenue, strong margin performance, and no longer having Preferred Shareholders in 2025 or their related attributed income.

• Cash flow from operating activities increased 4% to $27.9 million from 2024 levels, driven by higher income from operations, partly offset by cash used in changes in non-cash working capital.

• The strong cash flow from operations coupled with full retention of free cash flow following the conclusion of Preferred Shareholder allocations, resulted in $26.9 million in free cash flow attributed to common shareholders compared to $10.5 million in 2024.

Conference Call & Webcast

The Corporation will hold a conference call at 4:00pm Mountain Time (6:00pm Eastern Time) on Thursday, November 6, 2025 to discuss these results. To participate in the conference call, please dial 1-800-715-9871 or 1-647-932-3411 (International) at least 5 minutes prior to the call.

This conference call will also be webcast live and can be accessed by all interested parties at the following URL: https://www.gowebcasting.com/14373 .

A webcast replay will also be available within 24 hours following the call on The DLC Group's website at www.dlcg.ca, in the Investors section.

Reconciliation of Non-IFRS Financial Measures

Management presents certain non-IFRS financial performance measures which we use as supplemental indicators of our operating performance. These non-IFRS measures do not have any standardized meaning and therefore are unlikely to be comparable to the calculation of similar measures used by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Non-IFRS measures are defined and reconciled to the most directly comparable IFRS measure. Non-IFRS financial performance measures include adjusted EBITDA, adjusted net income, adjusted earnings per share, and free cash flow. Please see the Non-IFRS Financial Performance Measures section of the Corporation's MD&A dated November 6, 2025 for further information on key performance indicators. The Corporation's MD&A is available on SEDAR+ at www.sedarplus.ca.

The following table reconciles adjusted EBITDA from income before income tax, which is the most directly-comparable measure calculated in accordance with IFRS:

(1) Other expense (income) for the three and nine months ended September 30, 2025 relates to foreign exchange loss and loss on contract settlement. Other (income) expense for the three and nine months ended September 30, 2024 relates to the reversal of the liquidation rights liability on the sale of Impact, a loss on the disposal of an intangible asset, foreign exchange loss, and loss on contract settlement.
(2) Amortization of franchise rights and relationships of $1.3 million and $3.9 million for the three and nine months ended September 30, 2025, respectively (September 30, 2024 - $1.3 million and $3.9 million), is classified as a charge against revenue and has not been added back for adjusted EBITDA.
(3) Adjusted EBITDA includes a loss from our equity-accounted investment in Heartwood of $0.3 million and $1.0 million for the three and nine months ended September 30, 2025, respectfully.

FREE CASH FLOW

Free cash flow represents how much cash a business generates after spending what is required to maintain or expand its current asset base. Free cash flow attributable to common shareholders represents the cash available to the Corporation for general corporate purposes, including: repayments on our credit facilities, investment in growth capital expenditures, return of capital to common shareholders through the repurchases of Common Shares and discretionary payment of dividends to common shareholders, and cash to be retained by the company. This is a useful measure that allows management and users to understand the cash available to enhance shareholder value.

The other adjustments are expenses incurred during the period which are not the result of the main operating activities of the Corporation, or are related to the financing of these activities. Other one-time items included within other expense adjustments are insignificant items included within "other income" on the condensed consolidated statements of income that are not related to the main operating activities.

While free cash flow is not a recognized measure under IFRS, management believes that it is a useful supplemental measure as it provides management and investors with an insightful indication of the funds generated by the main operating activities that are available to the Corporation for use in non-operating activities. Free cash flow is determined by adjusting certain investing and financing activities. Investors should be cautioned, however, that free cash flow should not be construed as an alternative to a statement of cash flows as a measure of liquidity and cash flows. The methodologies we use to determine free cash flow may differ from those utilized by other issuers or companies and, accordingly, free cash flow as used in this MD&A may not be comparable to similar measures used by other issuers or companies. Readers are cautioned that free cash flow should not be construed as an alternative to net income determined in accordance with IFRS as indicators of an issuer's performance, or to cash flows from operating, investing, and financing activities as measures of liquidity and cash flows.

The following table reconciles free cash flow from cash flow from operating activities, which is the most directly-comparable measure calculated in accordance with IFRS:

(1) Other non-cash items for the three and nine months ended September 30, 2025 represent foreign exchange loss and promissory note income. The three months and nine months ended September 30, 2024 includes gain on disposal of an intangible asset, share-based payments, foreign exchange loss, and promissory note income.

ADJUSTED NET INCOME AND ADJUSTED EPS

Adjusted net income and Adjusted EPS are defined as net income before any unusual or non-operating items such as foreign exchange, fair value adjustments, finance expense on the Preferred Share liability, adjusted net income from the Core Business Operations attributable to the Preferred Shareholders, and one-time non-recurring items. Other one-time items included within other expense adjustments are insignificant items included within "other income" on the condensed consolidated statements of income that are not related to the main operating activities.

While adjusted net income is not a recognized measure under IFRS, management believes that it is a useful supplemental measure as it provides management and investors with an insightful indication of the operational performance of the Corporation by eliminating certain non-recurring items, adjusting for the net income attributable to the Preferred Shareholders, and excluding the finance expense on the Preferred Share liability. Management applies adjusted net income in its operational decision making as an indication of the results and cash generated by the main operating activities, after consideration of how these activities are financed and taxed. Adjusted net income is used to determine adjusted EPS (defined as adjusted net income attributable to common shareholders on a per-share basis).

Investors should be cautioned, however, that adjusted net income should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of an issuer's performance or to cash flows from operating, investing, and financing activities as a measure of liquidity and cash flows. The methodologies we use to determine adjusted net income may differ from those utilized by other issuers or companies and, accordingly, adjusted net income as used in this MD&A may not be comparable to similar measures used by other issuers or companies.

The following table reconciles adjusted net income from net income, which is the most directly-comparable measure calculated in accordance with IFRS:

(1) Other expense (income) for the three and nine months ended September 30, 2025 relates to foreign exchange loss and loss on contract settlement. Other expense for the three and nine months September 30, 2024 relates to the reversal of the liquidation rights liability on the sale of Impact, loss on the disposal of intangible assets, loss on contract settlement, and foreign exchange loss.

Forward-Looking Information

Certain statements in this document constitute forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate," "believe," "estimate," "will," "expect," "plan," or similar words suggesting future outcomes or outlooks. Forward-looking information in this document includes, but is not limited to, continuing to execute on our growth pillars and the continued strength in the renewal market.

Such forward-looking information is based on many estimates and assumptions, including material estimates and assumptions, related to the following factors below that, while considered reasonable by the Corporation as at the date of this press release considering management's experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to:

• Changes in interest rates;
• The DLC Group's ability to maintain its existing number of franchisees and brokers, and to add additional franchisees and brokers;
• Changes in overall demand for Canadian real estate (via factors such as immigration);
• Changes in overall supply for Canadian real estate (via factors such as new housing-start levels);
• At what period in time the Canadian real estate market stabilizes;
• Changes in Canadian mortgage lending and mortgage brokerage laws and regulations;
• Changes in the Canadian mortgage lending marketplace;
• Changes in the fees paid for mortgage brokerage services in Canada; and
• Demand for the Corporation's products remaining consistent with historical demand.

Many of these uncertainties and contingencies may affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made in this document are qualified by these cautionary statements. The foregoing list of risks is not exhaustive. The forward-looking information contained in this document is made as of the date hereof and, except as required by applicable securities laws, we undertake no obligation to update publicly or revise any forward-looking statements or information, whether because of new information, future events or otherwise.

About Dominion Lending Centres Inc.

Dominion Lending Centres Inc. is Canada's leading network of mortgage professionals. The DLC Group operates through Dominion Lending Centres Inc. and its three main subsidiaries, MCC Mortgage Centre Canada Inc., MA Mortgage Architects Inc. and Newton Connectivity Systems Inc., and has operations across Canada. The DLC Group's extensive network includes over 9,000 agents and over 500 locations. Headquartered in British Columbia, DLC was founded in 2006 by Gary Mauris and Chris Kayat.

The DLC Group can be found on X (Twitter), Facebook and Instagram and LinkedIn @DLCGmortgage and on the web at www.dlcg.ca.

Contact information for the Corporation is as follows:

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/273491