Ms. Catherine Flax reports

ZEFIRO METHANE CORP. ANNOUNCES FISCAL Q2 2026 RESULTS WITH OVER USD $22 MILLION IN REVENUE FOR THE FIRST SIX MONTHS OF ITS 2026 FISCAL YEAR

Zefiro Methane Corp. has released its consolidated financial results for the fiscal quarter that ended Dec. 31, 2025 (second quarter of fiscal 2026 (Q2 FY 2026)). All figures are in U.S. dollars unless otherwise specified.

Zefiro has released a recording of its second fiscal quarter 2026 earnings call in which the company's management team discusses these results. This recording is live and publicly available on Zefiro's YouTube channel.

Please refer to the version of this news release on Zefiro's website or SEDAR+, where the YouTube link will appear.

Second quarter fiscal 2026 results (1):

• Revenue of approximately $10.1-million, an approximately 34-per-cent increase over the same period last year;
• Second-highest quarterly revenue in the company's history following last quarter;
• Operating expenses decreased approximately $1.5-million to $3.1-million in Q2 FY 2026, down from $4.6-million in the same quarter last year;
• Over $1.1-million in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in Q2 FY 2026, demonstrating solid profitability amid continuing top-line growth and cost discipline;
• Incurred approximately $130,000 in one-time legal expenses during the quarter related to the continuing dispute attributable to prior management;
• The results over the last six months have significantly changed the trajectory of the company, compared with the comparable prior-year period:
  • Revenue totalled $22.2-million, an increase of nearly $4.7-million;
  • Gross profit was $8.1-million, an increase of over $4.2-million;
  • Adjusted EBITDA was $3.8-million, representing an improvement of almost $6.3-million;
  • Net income was positive at $300,000, an increase of approximately $6.4-million.

Chief executive officer Catherine Flax commented: "The company's performance over the past six months has been exceptional. We have grown revenue and adjusted EBITDA to the highest levels in our history while significantly reducing debt to more manageable levels. These results are not coincidental; they are the direct outcome of strong alignment between the board and management, coupled with disciplined execution of a clear strategic plan. While this progress is clearly reflected in our financial results, we have also taken meaningful steps to strengthen the foundation of the business and position the company for sustained, long-term growth."

Recent highlights:

• The company completed debt settlement agreements with two creditors, eliminating approximately $410,000 (Canadian) of liabilities on the books and forgiving $100,000 (Canadian) of outstanding debt.
• Zefiro successfully completed a $1.5-million infrastructure project near Pittsburgh, Penn., and has begun a $5-million initiative in Louisiana, marking its expansion into a new state with significant growth potential.
• The company worked with three creditors on a $2.48-million promissory note, exercising a total of 10.79 million common equity warrants issued in connection with the note in May, 2025. Seventy-five per cent of the exercise proceeds was applied to pay down the outstanding secured loan, while the remaining 25 per cent was equitized, providing the company with $450,000 in cash. This free cash flow was then used to pay down additional debt due on March 1, 2026, further strengthening Zefiro's balance sheet and financial position.

Looking ahead:

• The third quarter of the 2026 fiscal year is projected to be another strong quarter, marking the third consecutive quarter of performance improvement following the leadership change in early June. The company has several projects in the pipeline and continues to evaluate its options for both organic and inorganic growth to expand and diversify the business. With a disciplined approach to capital allocation and strategic investments, Zefiro is well positioned to capitalize on emerging opportunities and strengthen its market presence.
• The primary focus going into the third quarter remains paying down debt and strengthening the balance sheet. The company has made significant progress in this area and is well positioned to manage the $500,000 debt due on March 1, 2026, originally incurred under the prior management team. Continuing discussions are under way, and the company plans to pay the note in full at maturity, demonstrating disciplined financial management and a commitment to maintaining a strong balance sheet.

About Zefiro Methane Corp.

Zefiro is an environmental services company, specializing in methane abatement. Zefiro strives to be a key commercial force toward active sustainability. Leveraging decades of operational expertise, Zefiro is building a new toolkit to clean up air, land and water sources directly impacted by methane leaks. The company has built a fully integrated ground operation driven by an innovative monetization solution for the emerging methane abatement marketplace. As an originator of high-quality United States-based methane offsets, Zefiro aims to generate long-term economic, environmental and social returns.

(1) Please refer to Zefiro's SEDAR+ profile for full filings containing these financial results.

(2) Non-IFRS (international financial reporting standards) financial measure.

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