Mr. Bryan Pang reports

SOLUTION FINANCIAL REPORTS Q3 2026 FINANCIAL RESULTS

Solution Financial Inc. has released its financial results for the third quarter ending July 31, 2026.

Earnings highlights for the third quarter:

• Net income for the quarter was $187,098, compared with a net income of $93,077 in the comparative quarter in 2025.
• Revenue increased to $7.03-million, compared with $2.30-million in the comparative quarter, mainly driven by stronger vehicle sales activity.
• Total finance lease portfolio remained strong at approximately $32-million, supported by stable portfolio quality and continued credit performance during the quarter.
• Bank indebtedness was reduced to approximately $7.8-million, while securitization financing increased to approximately $15.4-million, providing continued financing flexibility for the company.

Operational highlights for the quarter

"Q3 was an encouraging quarter for us, largely fuelled by increased ultraluxury vehicle sales activity," said Bryan Pang, chief executive officer of Solution Financial. "At the same time, our leasing and financing operations continued to provide a solid foundation for the company.

"What we prioritize is not just the volume of business but also the quality of the business we add to our portfolio. Our finance lease portfolio stood at approximately $32-million at quarter-end, with no accounts more than 60 days past due. We are committed to being selective rather than simply expanding the portfolio for the sake of growth.

"We also managed our funding prudently. Our bank indebtedness was reduced to about $7.8-million, while our securitization financing increased to roughly $15.4-million. Having access to both financing facilities provides us with the flexibility to manage our cost of capital effectively and fund the right opportunities as they arise.

"It is important to note that results may fluctuate from quarter to quarter due to the timing and mix of vehicle transactions. Our focus is not on a single quarter's performance; rather, we aim to maintain portfolio quality, manage our capital carefully and grow the business when conditions are favourable," Mr. Pang concluded.

Outlook

As the Canadian luxury vehicle financing market evolves, the company focuses on business owners, professionals and near-prime clients seeking more flexible options to acquire, upgrade and resell luxury vehicles than traditional financing offers. Management believes this segment aligns well with Solution Financial's expertise in vehicle leasing, valuation and remarketing.

The company plans to grow selectively, prioritizing credit quality, risk-adjusted returns and vehicles with strong resale potential. It also explores opportunities to deploy capital into organic growth and strategic ventures that support the core leasing business and may boost long-term shareholder value.

Financial results

Total revenues were $7,030,258 for the three months ending July 31, 2026, compared with $2,296,637 in the comparative quarter, representing an increase of $4,733,621 (206 per cent). The increase was primarily attributable to several ultraluxury vehicle sales income arising from opportunistic remarketing opportunities.

Solution is reporting net income of $187,098 for the quarter ending July 31, 2026, compared with a net income of $93,077 for the comparative period in 2025.

Adjusted net income, which is more reflective of actual cash earnings, for the quarter ending July 31, 2026, was $299,763 (1) or 0.4 cent per share, compared with $190,356 or 0.1 cent per share for the quarter ending July 31, 2025. Adjusted net income excludes the non-cash accretion expense related to right of use assets of $27,101, income tax provision of $61,000, amortization of $20,765 and accretion expense of $3,799.

Lease portfolio

At July 31, 2026, Solution had 357 vehicles in its lease portfolio, a net decrease of 10 vehicles over the quarter to bring the total lease portfolio to $32.08-million.

At July 31, 2026, the average remaining lease term for the portfolio was 1.8 years, weighted by net book value for each vehicle. At July 31, 2026, Solution's 357 leases were generating annualized gross rental and lease cash flows of approximately $7.3-million.

About Solution Financial Inc.

Solution Financial commenced operations in 2004, and specializes in sourcing and leasing luxury and exotic vehicles, yachts, and other high-value assets. Solution works with a select group of luxury automotive and marine dealerships, providing lending solutions to clients who prefer more flexible leasing options than those traditionally offered by banks and other lease providers. Typical customers include business owners, professionals, and other prime and near-prime clients seeking greater flexibility to acquire, upgrade and resell luxury and ultraluxury vehicles than is typically available through traditional financing alternatives. Solution Financial provides a unique leasing experience whereby it partners with its clients to help source limited edition and difficult-to-acquire vehicles, as well as providing white glove services to clients for insuring, maintaining, upgrading and reselling their vehicles.

(1) Non-IFRS (international financial reporting standards) financial metrics

Solution provides all financial information in accordance with international financial reporting standards. To supplement its consolidated financial statements presented in accordance with IFRS, the company is also providing with this news release certain non-IFRS financial measures, including adjusted net income. In calculating non-IFRS financial measures, the company has excluded certain transactions that are not necessarily indicative of its continuing operations or do not impact cash flows. Non-IFRS measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable with similar measures presented by other issuers. These measures should not be considered in isolation nor as a substitute for analysis of the company's financial information reported under IFRS.

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