Vancouver, British Columbia--(Newsfile Corp. - July 14, 2026) - Destiny Media Technologies Inc. (TSXV: DSY) (OTCQB: DSNY), the makers of Play MPE®, a cloud-based SaaS solution for digital asset management in the music industry, today announced financial results for its fiscal 2026 third quarter ended May 31, 2026.
"Following today's announcement of Sharath Cherian as our next Chief Executive Officer, effective July 15, 2026, I want to extend my warmest welcome to him as he steps into this role. I am proud of the resilience and dedication our employees have shown throughout this transition period. Our solid quarterly results are a direct reflection of that hard work," said Hyonmyong Cho, Chairman and Interim Chief Executive Officer. "As expected, revenue was impacted by the previously announced longer-term agreement with a major label customer. Excluding that change, our core business remained stable, supported by continued growth in our independent customer base and solid performance across other customer segments."
I am excited to step into the role of Chief Executive Officer on July 15, 2026, to establish a clear, disciplined path forward for this organization," said Sharath Cherian, incoming Chief Executive Officer. "This company possesses an excellent foundation with a strong customer value proposition and a talented workforce that are ready to be unlocked. I look forward to working closely with our team to instill operational excellence, build long-term value for our shareholders, and drive a culture of execution and accountability."
Financial Highlights
Q3 FY2026 vs Q3 FY2025
- Growth in total customers of 5.0%
- Revenue of $1.0 million, a decrease of 8.4% mostly driven by major customer long term agreement pricing
- GAAP Net loss per share of $0.02, versus a loss of $0.01 in the comparable period a year ago
- Adjusted EBITDA loss of $55,500, versus EBITDA of $122,097 in the comparable period a year ago. Q3 FY2026 included a one-time severance cost of $110,467.
About Destiny Media Technologies Inc.
Destiny Media Technologies ("Destiny") provides software as service (SaaS) solutions to businesses in the music industry solving critical problems in distribution and promotion. The core service, Play MPE®, provides promotional music marketing to engaged networks of decision makers in radio, film, TV, and beyond. More information can be found on the DSNY website.
Forward-Looking Statements
This release contains forward-looking statements that reflect current views with respect to future events and operating performance. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. Destiny Media Technologies is not obligated to update these statements in the future. For more information on the Company's risks and uncertainties relating to those forward-looking statements, please refer to the Risk Factors section in our Annual Form 10-K for the fiscal year ended August 31, 2025, which is available on www.sedar.com or www.sec.gov.
Non-GAAP Financial Measures
Adjusted EBITDA is not defined under U.S. GAAP and may not be comparable to similarly titled measures reported by other companies. We use Adjusted EBITDA, together with other GAAP measures, as a measure of our operating performance because it helps us compare our performance on a consistent basis by removing from our results the impact of our capital structure, the effect of operating in different tax jurisdictions, and the impact of our asset base, which can vary depending on the book value of assets, the accounting methods used to compute depreciation and amortization, the existence or timing of asset impairments, and non-cash stock-based compensation expense.
We believe Adjusted EBITDA is useful to investors because it is a widely used measure of performance and because the adjustments we make provide additional clarity regarding our operating results and underlying profitability.
Adjusted EBITDA has limitations as a measure of profitability, as it does not include the effects of interest, income taxes, capital expenditures, depreciation and amortization, asset impairments, or non-cash stock-based compensation expense. Accordingly, it should not be considered in isolation or as a substitute for net income (loss) or other financial measures prepared in accordance with U.S. GAAP.
A reconciliation of net loss, the most directly comparable GAAP measure, to Adjusted EBITDA is included below.
DESTINY MEDIA TECHNOLOGIES, INC.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
|
|
| Three months ended May 31 |
|
| Nine months ended May 31 |
|
| Notes |
| 2026 |
|
| 2025 |
|
| 2026 |
|
| 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Service revenue | 8 | $ | 1,039,118 |
| $ | 1,133,963 |
| $ | 3,285,366 |
| $ | 3,379,692 |
|
|
|
| |
|
| |
|
| |
|
| |
|
| Cost of revenue |
|
| |
|
| |
|
| |
|
| |
|
| Hosting costs |
|
| 42,024 |
|
| 41,374 |
|
| 176,580 |
|
| 129,702 |
|
| Internal engineering support |
|
| 17,166 |
|
| 15,897 |
|
| 44,735 |
|
| 43,030 |
|
| Customer support |
|
| 97,275 |
|
| 90,083 |
|
| 253,501 |
|
| 243,836 |
|
| Third-party and transactions costs |
|
| 9,773 |
|
| 14,518 |
|
| 40,618 |
|
| 50,706 |
|
|
|
| 166,238 |
|
| 161,872 |
|
| 515,434 |
|
| 467,274 |
|
| Gross margin |
|
| 872,880 |
|
| 972,091 |
|
| 2,769,932 |
|
| 2,912,418 |
|
|
|
| 84.0% |
|
| 85.7% |
|
| 84.3% |
|
| 86.2% |
|
| Operating expenses |
|
| |
|
| |
|
| |
|
| |
|
| General and administrative |
|
| 342,849 |
|
| 206,193 |
|
| 1,099,513 |
|
| 752,412 |
|
| Sales and marketing |
|
| 173,524 |
|
| 228,760 |
|
| 587,097 |
|
| 631,241 |
|
| Product development |
|
| 416,341 |
|
| 423,970 |
|
| 1,295,291 |
|
| 1,263,749 |
|
| Depreciation and amortization | 4,5 |
| 164,499 |
|
| 190,425 |
|
| 504,001 |
|
| 541,128 |
|
|
|
| 1,097,213 |
|
| 1,049,348 |
|
| 3,485,902 |
|
| 3,188,530 | |
| Loss from operations |
|
| (224,333 | ) |
| (77,257 | ) |
| (715,970 | ) |
| (276,112 | ) |
|
|
| |
|
| |
|
| |
|
| |
|
| Other income |
|
| |
|
| |
|
| |
|
| |
|
| Interest and other income |
|
| 11,006 |
|
| 4,969 |
|
| 19,985 |
|
| 19,870 |
|
| Net loss before income tax |
|
| (213,327 | ) |
| (72,288 | ) |
| (695,985 | ) |
| (256,242 | ) |
| Current income tax expense |
|
| - |
|
| - |
|
| - |
|
| - |
|
| Net loss |
| $ | (213,327 | ) | $ | (72,288 | ) | $ | (695,985 | ) | $ | (256,242 | ) |
| Foreign currency translation adjustments |
|
| (22,647 | ) |
| 119,306 |
|
| (21,505 | ) |
| (79,330 | ) |
| Total comprehensive income (loss) |
| $ | (235,974 | ) | $ | 47,018 |
| $ | (717,490 | ) | $ | (335,572 | ) |
|
|
| |
|
| |
|
| |
|
| |
|
| Net loss per common share |
|
| |
|
| |
|
| |
|
| |
|
| Basic and diluted | 6(d) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.07 | ) | $ | (0.03 | ) |
|
|
| |
|
| |
|
| |
|
| |
|
| Weighted average common shares outstanding: |
| |
|
| |
|
| |
|
| |
|
| Basic | 6(d) |
| 9,637,410 |
|
| 9,637,410 |
|
| 9,637,410 |
|
| 9,637,410 |
|
| Diluted | 6(d) |
| 9,637,410 |
|
| 9,637,410 |
|
| 9,637,410 |
|
| 9,637,410 |
|
DESTINY MEDIA TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
| Notes |
| May 31,
2026 |
|
| August 31,
2025 |
|
| ASSETS |
|
|
|
|
|
|
|
| Cash and cash equivalents | 3 | $ | 1,397,098 |
| $ | 1,117,889 |
|
Accounts receivable, net of allowance for doubtful
accounts of $108,199 (August 31, 2025 - $82,184) |
|
| 588,245 |
|
| 863,422 |
|
| Other receivables |
|
| 39,653 |
|
| 127,698 |
|
| Prepaid expenses |
|
| 41,359 |
|
| 38,252 |
|
| Deposits |
|
| 43,802 |
|
| 31,581 |
|
| Total current assets |
|
| 2,110,157 |
|
| 2,178,842 |
|
|
|
| |
|
| |
|
| Property and equipment, net | 4 |
| 323,959 |
|
| 752,719 |
|
| Intangible assets, net | 5 |
| 14,412 |
|
| 35,282 |
|
| Total assets |
| $ | 2,448,528 |
| $ | 2,966,843 |
|
|
|
| |
|
| |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
| |
|
| |
|
| Current |
|
| |
|
| |
|
| Accounts payable |
| $ | 147,318 |
| $ | 70,255 |
|
| Accrued liabilities |
|
| 574,694 |
|
| 432,959 |
|
| Deferred revenue |
|
| 19,027 |
|
| 41,041 |
|
| Total current liabilities |
|
| 741,039 |
|
| 544,255 |
|
| Total liabilities |
|
| 741,039 |
|
| 544,255 |
|
|
|
| |
|
| |
|
| Stockholders' equity |
|
| |
|
| |
|
Common stock, par value $0.001, authorized 20,000,000
shares. Issued and outstanding - 9,637,410 shares
(August 31, 2025 - 9,637,410 shares) | 6 |
| 9,637 |
|
| 9,637 |
|
| Additional paid-in capital |
|
| 8,853,904 |
|
| 8,851,513 |
|
| Accumulated deficit |
|
| (6,526,471 | ) |
| (5,830,486 | ) |
| Accumulated other comprehensive loss |
|
| (629,581 | ) |
| (608,076 | ) |
| Total stockholders' equity |
|
| 1,707,489 |
|
| 2,422,588 |
|
| Total liabilities and stockholders' equity |
| $ | 2,448,528 |
| $ | 2,966,843 |
|
DESTINY MEDIA TECHNOLOGIES, INC.
Net Loss to Adjusted EBITDA Reconciliation
(Unaudited)
|
| For the three months ended May 31 |
|
| For the nine months ended May 31 |
|
|
| 2026 |
|
| 2025 |
|
| 2026 |
|
| 2025 |
|
| Net loss | $ | (213,327 | ) | $ | (72,288 | ) | $ | (695,985 | ) | $ | (256,242 | ) |
| Stock based compensation |
| 353 |
|
| 8,929 |
|
| 2,391 |
|
| 27,832 |
|
| Amortization |
| 164,499 |
|
| 190,425 |
|
| 504,001 |
|
| 541,128 |
|
| Interest |
| (7,025 | ) |
| (4,969 | ) |
| (16,004 | ) |
| (19,870 | ) |
| Adjusted EBITDA | $ | (55,500 | ) | $ | 122,097 |
| $ | (205,597 | ) | $ | 292,848 |
|
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