Mr. Charlie Regan reports

NERDS ON SITE INC. REPORTS Q3 FY2026 RESULTS: RETURN TO PROFITABILITY AND CONTINUED REVENUE MOMENTUM; NERD RETURNS TO PROFITABILITY AND CONTINUED REVENUE MOMENTUM

Nerds On Site Inc. has released its financial results for the three and nine months ended Feb. 28, 2026.

The company delivered continued revenue growth, improved margins and a return to quarterly profitability, reflecting disciplined execution, a strengthening recurring revenue base, and continuing demand for cybersecurity and managed information technology services.

"Our return to profitability is a defining moment for NERD. We believe we're still in the early innings of a very large market opportunity to deliver long-term value to our clients and shareholders," said Charlie Regan.

Third quarter fiscal 2026 financial highlights

For the three months ended Feb. 28, 2026:

• Revenue increased to $3,284,428, up 9 per cent from $3,004,549 in the prior-year period.
• Gross profit rose to $861,370, with gross margin improving to 26 per cent (from 23 per cent).
• Selling, general and administrative expenses declined 16 per cent, improving to 23 per cent of revenue (from 30 per cent).
• Net income reached $51,877, compared with a net loss of $198,156 last year.
• Earnings per share improved to 0.06 cent, compared with a loss of 0.22 cent.

For the nine months ended Feb. 28, 2026:

• Revenue increased to $10,077,870, up 18 per cent year over year.
• Gross profit rose to $2,526,147, with stable margins of 25 per cent.
• SG&A expenses decreased 7 per cent, improving to 25 per cent of revenue (from 32 per cent).
• Net loss reduced significantly to $280,840, compared with $559,211 in the prior year.
• Operating cash usage improved dramatically to $104,135, versus $693,709 in the prior period.

These results highlight meaningful operational progress and improved financial discipline across the organization.

Return to profitability marks key inflection point

The company's return to quarterly net profitability represents a critical milestone in its evolution.

This improvement was driven by:

• Growth in recurring revenue from business clients in Canada;
• Enhanced cost management and operational efficiency;
• A more favourable product mix and improved sourcing strategies;
• Continued leverage from the company's scalable service model.

Management views this quarter as an important step toward sustained profitability.

Recurring revenue model driving stability and growth

Nerds On Site continues to benefit from its high-visibility recurring revenue model, which is foundational to its business strategy.

During the nine-month period:

• Business recurring revenue in Canada increased by 17 per cent.
• The company served over 10,000 customers annually, with 130,000-plus clients served since inception.
• Recurring service agreements continue to provide predictable cash flow and long-term client relationships.

This model positions the company to generate consistent revenue while scaling efficiently across markets.

Operational efficiency and margin expansion

The company achieved significant improvements in cost structure, with SG&A reductions driven by:

• Lower payroll and operational costs within NOS technical services;
• Timing efficiencies in business development spending;
• Continued optimization of internal systems and processes;

Gross margin expansion to 26 per cent in the quarter reflects:

• Improved pricing from suppliers;
• Strategic sourcing initiatives;
• Increased contribution from higher-margin service revenues.

These improvements demonstrate the company's ability to scale profitably while maintaining service quality.

Chief executive officer Mr. Regan commented: "Our return to profitability this quarter is a defining moment for Nerds On Site. We've spent decades humanizing technology, and, today, we're scaling that vision across Canada and deeper into USA. This quarter's profitability is not the destination -- Nerds On Site is transitioning from a growth story into a performance story. Our platform, our people and our model are designed for a world where trust, speed and security are everything. We believe we are still in the early innings of a very large market opportunity to deliver long-term value to our clients and shareholders."

Market position and industry tailwinds

Management believes the company is well positioned within a rapidly evolving information technology landscape:

• Increasing cybersecurity threats are driving demand for managed services.
• The shift to hybrid and remote work environments continues to accelerate IT complexity.
• Small- and medium-sized enterprises are increasingly outsourcing IT to trusted managed service providers.

Nerds On Site's combination of:

• A distributed e-Nerds contractor network;
• A proprietary ERP platform (Iamanerd);
• A strong recurring revenue base provides a scalable and differentiated operating model.

Balance sheet and liquidity

As of Feb. 28, 2026:

• Cash and cash equivalents: $225,535;
• Total assets: $1,111,055;
• Total liabilities: $3,286,241.

The company improved its operating cash flow significantly, reducing cash used in operations by nearly $590,000 year over year.

While a working capital deficiency remains, management is focused on:

• Continued revenue growth;
• Cost discipline;
• Access to capital as needed to support long-term stability and expansion.

Outlook

Looking ahead, Nerds On Site is focused on:

• Driving sustained profitability through operational leverage;
• Expanding recurring revenue streams;
• Growing its presence in the U.S. market;
• Strengthening its position in cybersecurity and managed services.

Management believes that the company's improving financial performance, combined with strong industry demand, positions it well for continued growth and value creation.

About Nerds On Site Inc.

Nerds On Site is a managed IT and cybersecurity service provider delivering technology solutions to small- and medium-sized enterprises across Canada and the United States. The company operates a network of highly skilled IT professionals supported by its proprietary ERP platform, enabling scalable, efficient and customer-focused service delivery.

We seek Safe Harbor.