Victory Square Technologies Reports First-Half 2026 Revenue of $53.0 Million and Net Income of $6.5 Million

Q2 revenue increases 421% year-over-year to $28.0 million; cash reaches $20.2 million and working capital increases to $34.5 million

VANCOUVER, BC, Sept. 1, 2026 /PRNewswire/ -- Victory Square Technologies Inc. ("Victory Square", "VST" or the "Company") (CSE: VST) (OTCQX: VSQTF) (FWB: 6F6), a venture builder focused on healthcare infrastructure, digital health, artificial intelligence and emerging technology platforms, today announced its financial results for the three and six months ended June 30, 2026, and provided an update on key portfolio developments.

Victory Square generated revenue of $28.0 million during Q2 2026, compared with $5.4 million during Q2 2025, representing an increase of approximately 421% year-over-year. Gross profit increased to $5.4 million, compared with $1.9 million in the prior-year period, while net income was $2.5 million, compared with $0.4 million in Q2 2025.

For the six months ended June 30, 2026, Victory Square generated $53.0 million in revenue, compared with $9.9 million during the same period in 2025, representing an increase of approximately 434% year-over-year. Gross profit increased to $10.5 million, compared with $3.4 million, while net income was $6.5 million, compared with a net loss of approximately $0.1 million during the comparable period in 2025.

The Company's consolidated revenue growth during the period was primarily attributable to the continued growth of Hydreight Technologies Inc. ("Hydreight"), while net income was primarily attributable to operating income from Hydreight and fair-value adjustments in portfolio investments.

Q2 and First-Half 2026 Financial Highlights

For the three months ended June 30, 2026:

• Revenue of $28.0 million, compared with $5.4 million in Q2 2025, an increase of approximately 421%
• Gross profit of $5.4 million, compared with $1.9 million, an increase of approximately 182%
• Net income of $2.5 million, compared with $0.4 million
• Comprehensive income of $3.2 million, compared with $0.5 million

For the six months ended June 30, 2026:

• Revenue of $53.0 million, compared with $9.9 million during the comparable period in 2025, an increase of approximately 434%
• Gross profit of $10.5 million, compared with $3.4 million, an increase of approximately 206%
• Net income of $6.5 million, compared with a net loss of approximately $0.1 million
• Comprehensive income of $7.4 million, compared with approximately $34,000 during the comparable period in 2025.

As at June 30, 2026:

• Cash of $20.2 million, compared with $16.3 million at December 31, 2025
• Working capital of $34.5 million, compared with $15.1 million at December 31, 2025

"Q2 continued the strong operating momentum we saw at the beginning of the year," said Shafin Diamond Tejani, Chief Executive Officer of Victory Square Technologies. "Through the first six months of 2026, Victory Square generated approximately $53 million in revenue and $6.5 million in net income. At June 30, we had more than $20 million in cash and approximately $34.5 million in working capital, providing a strong financial foundation as we continue supporting the growth of our portfolio."

"What matters to us beyond the headline numbers is what is happening across the portfolio. Hydreight continues to scale the healthcare infrastructure we have spent years helping build. Insu Therapeutics is advancing the development of its buccal drug-delivery platform, and Pawsible is applying our venture-building approach to opportunities within companion-animal health."

"Our approach has remained consistent: identify companies and technologies in large markets, work alongside founders and management teams, provide capital and operational support, and help those companies progress from development toward scalable operations. Hydreight's growth provides a tangible example of what that model can look like as a platform reaches scale."

"We enter the second half of 2026 focused on execution and disciplined capital allocation. Our priorities include supporting Hydreight's continued growth, advancing our healthcare investments, supporting Insu's development programs, expanding Pawsible's activities and continuing to evaluate opportunities across the portfolio."

Portfolio Update

Hydreight Technologies -- Continued Growth Across U.S. Healthcare Infrastructure

Hydreight Technologies Inc. (TSXV: NURS) (OTCQB: HYDTF) is Victory Square's largest operating subsidiary and operates a digital health infrastructure platform supporting healthcare providers, businesses and direct-to-consumer healthcare brands across the United States.

Hydreight reported record Q2 2026 revenue of approximately $28.0 million, an increase of approximately 422% compared with $5.4 million in Q2 2025. Gross profit was approximately $5.4 million, while Hydreight generated approximately $2.5 million in net income during the quarter.

Q2 revenue increased approximately 12.5% sequentially from Q1 2026, while gross profit increased approximately 7%. For the first six months of 2026, Hydreight generated approximately $53.0 million in revenue, an increase of approximately 434% compared with $9.9 million during the same period in 2025.

Hydreight's virtual healthcare/direct-to-consumer segment generated approximately $22.8 million of revenue during Q2 2026 and approximately $42.7 million during the first six months of 2026, compared with approximately $1.0 million during the corresponding six-month period in 2025.

Hydreight's broader healthcare infrastructure spans all 50 U.S. states and includes a network of more than 3,000 nurses, more than 300 independent doctors and pharmacy relationships supporting its healthcare ecosystem. Hydreight continues to invest in VSDHOne 2.0 and the technology, provider, pharmacy and compliance infrastructure supporting its operations.

Hydreight ended Q2 2026 with approximately $20.0 million in cash and $35.1 million in working capital, compared with approximately $15.6 million in cash and $15.7 million in working capital at December 31, 2025.

Hydreight's revenue mix changed substantially as its pharmacy operations scaled. Pharmacy product sales increased to approximately $26.2 million during Q2 2026, compared with approximately $4.5 million during Q2 2025. The change in revenue mix contributed to a Q2 gross margin of approximately 19.4%, compared with 35.9% during the prior-year period. Hydreight has disclosed that the change primarily reflects the increased contribution from pharmacy sales and certain pricing concessions associated with initial transactions under new supporting pharmacy partnerships.

Hydreight has reaffirmed its previously announced fiscal 2026 revenue guidance of approximately $150 million, based on management's current internal planning assumptions and subject to the assumptions and risks contained in Hydreight's public disclosure.

Insu Therapeutics -- Advancing Buccal Peptide Delivery Technology

Victory Square continues to support the development of Insu Therapeutics Inc., a biotechnology company developing a patented buccal drug-delivery platform for peptide-based therapeutics.

Insu's platform is designed to evaluate the delivery of peptide therapies through the buccal mucosa, or inner cheek, as an alternative route of administration. Insu is not developing a new peptide molecule; its current research is focused on evaluating its delivery technology using existing peptide therapies, including semaglutide.

During the first half of 2026, Insu announced the completion of Phase I preclinical studies evaluating its buccal semaglutide program and received Research Ethics Board approval from the University of British Columbia to initiate Phase II studies.

The studies use innovator-manufactured semaglutide and are designed to evaluate pharmacokinetics, systemic exposure and performance under chronic administration. Insu's intellectual property and research programs are focused on peptide-delivery technologies and are supported by research conducted at the University of British Columbia.

Victory Square continues to support Insu as it advances its research and development programs.

Pawsible Ventures -- Building a Pet-Health Venture Platform

Victory Square continues to expand its activities in companion-animal health through Pawsible Ventures, a pet-health venture platform focused on identifying and supporting companies developing technologies and services across veterinary healthcare.

During 2026, Pawsible launched a $10 million venture fund, venture studio, pet-health incubator and global advisory board focused on supporting companies operating across areas including veterinary diagnostics, AI-enabled care, preventative health, therapeutics, veterinary software and consumer wellness. These initiatives build on Victory Square's previously disclosed strategy of extending its company-building model into adjacent healthcare markets.

In April 2026, Pawsible announced its inaugural cohort of eight companies, selected following the evaluation of several hundred applicants globally. The cohort includes companies operating across veterinary infrastructure, diagnostics, AI-enabled care, preventative health and consumer wellness.

Victory Square continues to evaluate opportunities within companion-animal health, including veterinary diagnostics, digital health, artificial intelligence, preventative care and therapeutics.

Victory Square's Venture-Building Strategy

Victory Square operates as an active venture builder, working alongside portfolio companies to provide capital, operational support, strategic guidance and access to its network of partners and resources.

The Company's approach is focused on identifying opportunities in large and evolving markets, helping build the infrastructure required for growth, and supporting companies as they progress toward scalable operations. Hydreight's development and growth provide an example of this approach, which Victory Square continues to apply across its broader portfolio.

Strategic Priorities for the Remainder of 2026

Victory Square's priorities for the remainder of 2026 include:

• Supporting Hydreight's continued execution and expansion of VSDHOne and its broader U.S. healthcare infrastructure
• Supporting Insu Therapeutics as it advances its peptide-delivery research and development programs
• Expanding Pawsible Ventures' pet-health platform and supporting companies within its incubator
• Continuing to evaluate opportunities across healthcare infrastructure, digital health, artificial intelligence and emerging technology
• Maintaining disciplined capital allocation across the Company's portfolio

Victory Square will continue to provide updates as material developments occur.

Financial Statements and MD&A

Victory Square's condensed consolidated interim financial statements and Management's Discussion and Analysis for the three and six months ended June 30, 2026 are available under the Company's issuer profile on SEDAR+.

The Company's Q2 2026 financial statements were prepared in accordance with IAS 34, Interim Financial Reporting, using accounting policies consistent with IFRS Accounting Standards.

Readers are encouraged to review the complete financial statements and MD&A in conjunction with this news release.

On behalf of the Board of Directors

Shafin Diamond Tejani
Chairman & Chief Executive Officer
Victory Square Technologies Inc.

ABOUT VICTORY SQUARE TECHNOLOGIES INC.

Victory Square Technologies Inc. is a publicly traded company that invests in, develops, and supports businesses operating across healthcare infrastructure, digital health, artificial intelligence, immersive technologies, and other emerging sectors.

The Company maintains a portfolio of operating and development-stage businesses, with a particular focus on healthcare infrastructure, software platforms, and technology-enabled services.

Portfolio sectors include:

• Digital Health & Healthcare Infrastructure
• Artificial Intelligence (AI) & Machine Learning
• Blockchain & Web3 Infrastructure
• Virtual & Augmented Reality (VR/AR)
• Gaming & Interactive Technologies
• Climate Technology
• Pet Health & Wellness

Victory Square provides portfolio companies with access to capital, operational support, strategic guidance, and industry relationships to assist in their development and growth.

The Company is headquartered in Vancouver, British Columbia, Canada, and its common shares trade on the Canadian Securities Exchange (CSE: VST), the Frankfurt Stock Exchange (FWB: 6F6), and the OTC Market (OTCQX: VSQTF).

For more information, please visitwww.victorysquare.com.

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws.

Forward-looking information may be identified by words such as "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions.

Forward-looking information in this news release includes, without limitation, statements relating to:

• The Company's strategy and business model
• Portfolio company development and performance
• Platform scaling and utilization
• Capital allocation and monetization initiatives
• Hydreight's publicly disclosed guidance and outlook
• The anticipated benefits of VSDHOne and other platform-based offerings
• Development timelines and regulatory pathways for Insu Therapeutics
• Expansion initiatives across Pawsible Ventures and other portfolio companies

Forward-looking information is based on management's current expectations, estimates, assumptions, and beliefs as of the date of this release, including assumptions regarding:

• Continued partner adoption and transaction volumes
• Stability of regulatory frameworks in applicable jurisdictions
• Availability of capital
• Portfolio company execution
• General economic and market conditions

Forward-looking information relating to Hydreight, including revenue guidance and margin expectations, is based on information publicly disclosed by Hydreight and reflects Hydreight management's expectations regarding partner activity, service mix, and operational capacity.

Actual results may differ materially from those anticipated due to a number of factors, including, without limitation:

• Changes in regulatory requirements
• Execution risk at the portfolio company level
• Variability in transaction volumes or partner performance
• Revenue recognition and audit outcomes
• Capital markets conditions
• Clinical development risks
• General economic and industry conditions

There can be no assurance that forward-looking information will prove to be accurate, and readers are cautioned not to place undue reliance on such information.

Except as required by applicable law, the Company does not undertake any obligation to update forward-looking information.

Use of Non-GAAP Financial Measures

This news release references certain non-GAAP financial measures used by the Company and its portfolio companies, including "Adjusted Revenue" and "Adjusted EBITDA."

These measures do not have standardized meanings prescribed by International Financial Reporting Standards ("IFRS") and may not be comparable to similar measures used by other issuers.

For Victory Square, non-GAAP measures are used to provide additional insight into operating performance, portfolio activity, and the scale of underlying platform economics.

For Hydreight Technologies Inc. ("Hydreight"), which is consolidated within the Company's financial results, non-GAAP financial measures are defined and reported by Hydreight in its public disclosure, including its audited financial statements and MD&A.

As disclosed by Hydreight:

• Adjusted Revenue reflects gross economic activity processed through the platform and may differ materially from revenue recognized under IFRS due to revenue recognition and deferral requirements.
• Adjusted EBITDA is defined as net income (loss) before interest, taxes, depreciation and amortization, and before certain non-recurring or non-operating items, including transaction costs, share-based compensation, and other adjustments as disclosed in Hydreight's filings.

These measures are provided for informational purposes only and should not be considered in isolation or as substitutes for financial measures prepared in accordance with IFRS.

Readers are encouraged to review Hydreight's public filings on SEDAR+ for full definitions, reconciliations, and related disclosures regarding its non-GAAP financial measures.

In addition, revenue recognition for certain platform-based offerings, including those facilitated through the VSDHOne infrastructure, may involve management judgment and auditor review, and may result in differences between reported IFRS revenue and gross processing volumes or cash receipts during a given period.

Notes:

1. "Adjusted Revenue" is a non-GAAP financial measure, and the figures reflect gross economic activity processed through the Company's platform and should not be considered revenue recognized under IFRS. See "Non-GAAP Financial Measures" section below for definition.
2. "Adjusted EBITDA" is a non-GAAP financial measure and reflects EBITDA plus additions for atypical and non-recurring charges. See "Non-GAAP Financial Measures" section below for definition.

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SOURCE Victory Square Technologies Inc