Mr. Maury Marks reports

QUORUM ANNOUNCES Q1 2025 RESULTS AND BOARD CHANGES

Quorum Information Technologies Inc. has released its results for the first quarter of 2025, ended March 31, 2025. Please refer to the MD&A (management's discussion and analysis) and financial statements, posted onto SEDAR+, related to non-IFRS (international financial reporting standards) measures and risk factors.

"I am pleased to announce that in Q1 2025, Quorum achieved consistent revenue year over year, in a quarter where tariffs are starting to impact the automotive industry in North America," stated Maury Marks, president and chief executive officer. "Quorum continued to pursue a strategy of profitable growth, which delivered an adjusted EBITDA margin of 15 per cent in Q1 2025 and a cash EBITDA margin of 10 per cent, along with 1-per-cent organic growth in recurring revenues. Quorum has implemented $1.3-million in annual savings that will be fully realized in Q3 2025, including a BDC gross margin improvement plan, office lease cost savings, third party service provider savings and other cost improvements. We are also pleased to announce that during Q1 2025, we paid down $300,000 on our BDC Capital cash flow loan and an additional $500,000 on May 8, 2025.

"I would like to sincerely thank our employees, whose efforts were crucial in delivering our Q1 2025 plan and solid quarterly results," said Mr. Marks. "Their efforts are complemented by our integrated suite of 13 essential software solutions and services. This product suite is fundamental to our profitable growth strategy, as it facilitates product cross-selling and plays a vital role in driving the success of our dealerships, thereby increasing value for both Quorum and its customers."

First quarter results:

• Total revenue increased by 1 per cent to $10.2-million in Q1 (first quarter) 2025 compared with Q1 2024.
• SaaS (software-as-a-service) revenue increased by 1 per cent to $7.2-million in Q1 2025 compared with Q1 2024.
• BDC revenue increased by 4 per cent to $2.6-million in Q1 2025 compared with Q1 2024.
• Gross margin decreased by 5 per cent to $4.8-million in Q1 2025 compared with Q1 2024.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $1.5-million in Q1 2025, a decrease of $600,000 compared with Q1 2024.
• Cash EBITDA was $1.0-million in Q1 2025, a decrease of $400,000 compared with Q1 2024.

Board changes

Quorum is also pleased to announce the appointment of Steve Hammond to the board of directors. Mr. Hammond will be taking the place of Scot Eisenfelder, who will not be standing for election at the upcoming annual general meeting (AGM), after serving on Quorum's board for 16 years. Mr. Hammond brings decades of experience as an operator of enterprise software businesses, primarily in the utilities and health care verticals.

"Since joining Quorum's board of directors in 2009, Scot has provided invaluable strategic leadership and deep automotive expertise that have been instrumental in shaping Quorum's success," stated Mr. Marks. "His mentorship has also significantly influenced my growth as a leader. On behalf of myself and the board of directors, we would like to sincerely thank Scot for his contributions over the last 16 years."

Quorum Q1 2025 results conference call details and investor presentation

Mr. Marks and Marilyn Bown, chief financial officer, will present the Q1 2025 results at a conference call with concurrent audio webcast, scheduled as follows.

Date:  Thursday, May 29, 2025

Time:  11 a.m. MT (1 p.m. ET)

Conference:  Complete an on-line registration form. Upon registering, you will receive the dial-in information and a unique PIN (personal identification number) to join the call, as well as an e-mail confirmation with the details.

Webcast:  A webcast will be available.

An updated investor presentation, replay of the results conference call and transcripts of the conference call will also be available on the company's website.

About Quorum Information Technologies Inc.

Quorum is a North American SaaS software and services company providing essential enterprise solutions that automotive dealerships and original equipment manufacturers (OEM) rely on for their operations, including:

• Quorum's dealership management system (DMS), which automates, integrates and streamlines key processes across departments in a dealership, and emphasizes revenue generation and customer satisfaction;
• DealerMine CRM, a sales and service customer relationship management (CRM) system and set of business development centre services that drives revenue into the critical sales and service departments in a dealership;
• Autovance, a modern retailing platform that helps dealerships attract more business through digital retailing, improve in-store profits and closing rates through its desking tool and maximize their efficiency and CSI through Autovance's F&I menu solution;
• Accessible accessories, a digital retailing platform that allows franchised dealerships to efficiently increase their vehicle accessories revenue;
• VINN Automotive, a premier automotive marketplace that streamlines the vehicle research and purchase process for vehicle shoppers while helping retailers sell more efficiently.

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