Mr. Tim Gu reports

UNISYNC CORP. REPORTS Q1 FISCAL 2026 RESULTS

Unisync Corp. has released its financial results for the three months ended Dec. 31, 2025, reporting net income of $900,000 (five cents per share), compared with a net loss of $700,000 (four cents per share) in the same quarter in the prior year. While the prior year included unrealized foreign exchange losses of $1.3-million, underlying operations remained resilient, and Q1 2026 margins benefited from a more favourable sales mix and lower depreciation expense, reflecting continued operational momentum.

"The year is off to a strong start and demonstrates the momentum we have built across the business," said Tim Gu, executive chairman of Unisync. "We are delivering stronger margins, better efficiency and improved profitability, all driven by a focused team executing on our strategic priorities. The momentum we have today gives us confidence in the opportunities ahead."

Highlights

Q1 2026:

• Net income before income taxes of $1.2-million, compared with a net loss before income taxes of $1.0-million in the prior year.
• Gross margin increased to 23.7 per cent from 19.7 per cent year over year.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $2.7-million or 12.9 per cent, a 3.9-per-cent improvement year over year.
• Interest expense declined by $200,000 due to overall reduced borrowings.

Operational and financial review

Revenues for the three months ended Dec. 31, 2025, were $20.9-million, compared with $21.4-million in the prior year. The decrease was primarily attributable to lower volumes in public sector accounts, partially offset by a slight increase in airline accounts. Despite the lower revenue base, Unisync delivered an improvement in profitability. Gross margin increased from 19.7 per cent in the prior year to 23.7 per cent in current quarter. The year-over-year improvement was driven by a more favourable sales mix, lower offshore product costs, and a reduction in depreciation and amortization expense. Net income included $100,000 in unrealized foreign exchange gains, compared with $1.3-million in unrealized foreign exchange losses in the prior year.

New business and outlook

During the three months ended Dec. 31, 2025, the company secured an additional $7.5-million in annualized new business as previously announced, including contracts in the telecommunications, quick-service restaurant and government sectors.

Management of Unisync Group Ltd. (UGL) segment continues to actively pursue a robust pipeline of material opportunities expected to come to market in both Canada and the United States during calendar 2026. The Peerless Garments segment has $25.3-million in firm contracts and options as at Dec. 31, 2025, and continues to pursue additional contract opportunities as they arise.

More detailed information is contained in the company's consolidated financial statements for the three months ended Dec. 31, 2025, and management discussion and analysis dated Feb. 10, 2026, which may be accessed at SEDAR+.

About Unisync Corp.

Unisync operates through two business units: Unisync Group with operations throughout Canada and the United States and 92-per-centowned Peerless Garments LP, a domestic manufacturing operation based in Winnipeg, Man. UGL is a leading customer-focused provider of corporate apparel, serving many leading Canadian and American iconic brands. Peerless specializes in the production and distribution of highly technical protective garments, military operational clothing, and accessories for a broad spectrum of federal, provincial, and municipal government departments and agencies.

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