Mr. Doug Moore reports

EVERTZ TECHNOLOGIES REPORTS RECORD QUARTERLY REVENUE OF $139 MILLION IN THE THIRD QUARTER ENDED JANUARY 31, 2026

Evertz Technologies Ltd. has released its results for the third quarter ended Jan. 31, 2026.

Third quarter 2026 highlights:

• Record quarterly revenue of $139.3-million, an increase of $2.4-million or 2 per cent from the prior-year quarter;
• International quarterly revenue of $43.7-million, up $5.9-million or 15 per cent from the prior-year quarter;
• Earnings from operations, before foreign exchange, of $28.1-million, an increase of $3.9-million or of 16 per cent from the prior year;
• Net earnings of $18.7-million for the quarter;
• Fully diluted earnings per share of 24 cents for the quarter.

Revenue

For the quarter ended Jan. 31, 2026, revenues were $139.3-million, an increase of $2.4-million compared with revenues of $136.9-million for the quarter ended Jan. 31, 2025. For the quarter, revenues in the United States/Canada region were $95.6-million, a decrease compared with $99.1-million in the same quarter last year. The international region had revenues of $43.7-million, an increase of $5.9-million or 15.5 per cent compared with $37.8-million in the same quarter last year.

Gross margin

Gross margin for the third quarter ended Jan. 31, 2026, was $81.2-million, an increase of $2.1-million or 2.7 per cent compared with $79.1-million for the third quarter ended Jan. 31, 2025. As a percentage of revenue, the gross margin was 58.3 per cent for the third quarter ended Jan. 31, 2026, compared with 57.8 per cent for the third quarter ended Jan. 31, 2025.

Earnings

For the quarter ended Jan. 31, 2026, net earnings, before the impact of foreign exchange, was $28.1-million, an increase compared with $24.2-million in the corresponding period last year. For the quarter ended Jan. 31, 2026, net earnings were $18.7-million, compared with $21.1-million in the corresponding period last year.

For the quarter ended Jan. 31, 2026, earnings per share on a fully diluted basis were 24 cents, as compared with 27 cents in the corresponding period last year.

Operating expenses

For the quarter ended Jan. 31, 2026, selling and administrative expenses were $18.6-million, as compared with $19.2-million for the quarter ended Jan. 31, 2025.

For the quarter ended Jan. 31, 2026, gross research and development expenses were $36.7-million, as compared with $36.6-million for the quarter ended Jan. 31, 2025.

Liquidity and capital resources

The company's working capital as at Jan. 31, 2026, was $133.2-million, as compared with $206.9-million on April 30, 2025.

Cash and cash equivalent were $24.8-million as at Jan. 31, 2026, as compared with $111.7-million on April 30, 2025.

Cash generated from operations was $29.3-million for the quarter ended Jan. 31, 2026, as compared with $53.0-million cash generated for the quarter ended Jan. 31, 2025. Before taking into account taxes and the changes in non-cash working capital and current taxes, the company generated $24.9-million from operations for the quarter ended Jan. 31, 2026, compared with $26.8-million for the same period last year.

For the quarter, the company used $7.0-million from investing activities, including the acquisition of an airplane for $4.4-million.

For the quarter, the company used cash in financing activities of $92.4-million, which was principally a result of the payment of dividends of $91.0-million, including a special dividend of $75.5-million.

Shipments and backlog

At the end of February, 2026, purchase order backlog was in excess of $246-million and shipments during the month of February, 2026, were $32-million.

Dividend declared

Evertz's board of directors declared a regular quarterly dividend on March 4, 2026, of 20.5 cents per share.

The dividend is payable to shareholders of record on March 13, 2026, and will be paid on or about March 20, 2026.

Selected consolidated financial information is provided in attached tables.

Conference call

The company will hold a conference call with financial analysts to discuss the results on March 4, 2026, at 5 p.m. EDT. Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialling 1-289-514-5100 or toll-free (North America) 1-800-717-1738.

For those unable to listen to the live call, a rebroadcast will also be available until April 4, 2026. The rebroadcast can be accessed at 1-289-819-1325 or toll-free 1-888-660-6264, passcode 66926 followed by the pound key.

About Evertz Technologies Ltd.

Evertz designs, manufactures and markets video and audio infrastructure solutions for the production, postproduction and transmission of video content. The company's solutions are purchased by the television broadcast, telecommunications, professional audio-visual, content creator, advanced education, government, military, enterprise and new media sectors to support increasingly complex multichannel digital and high-definition, ultrahigh-definition and high-dynamic-range formats, and next-generation high-bandwidth low-latency IP network environments. The company's products allow its customers to generate additional revenue while reducing costs through efficient, highly reliable and secure signal routing, distribution, monitoring and management of content, as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the cloud.

We seek Safe Harbor.