Mr. Michel Pepin reports

CISCOM REPORTS CONSISTENT Q2 2025 EARNINGS AMID MARKET CHALLENGES

Ciscom Corp. has filed its interim unaudited consolidated financial statements and management's discussion and analysis for the six months ended June 30, 2025. The financial statements show that Ciscom's revenues came under pressure during the period and maintained its cash-basis operating results (EBITDA: earnings before interest, taxes, depreciation and amortization) before non-recurring and impairment charges when compared with the prior year. The financial statements and the related MD&A are available on SEDAR+.

Several events have impacted the first half of 2025. The Canada Post Corp. (CPC) labour dispute that began in the fall of 2024 disrupted business and sales over all as direct mail could not be distributed and clients cancelled campaigns. The disruption persisted through the first and second quarters of 2025 where clients limited, and in some cases, stopped their activities due to the CPC labour dispute. A significant client of a Ciscom subsidiary sought bankruptcy protection under the companies' Creditors Arrangement Act (CCAA). As a result, the company lost this revenue stream in 2025 and had to take an account receivable impairment charge in 2025 for work performed in January, 2025. During the six-month period there were also one-time restructuring charges linked to downsizing the work force. Lastly, the company felt the effects of the unprecedented U.S. tariffs and their constant amendment leading to an uncertain economic climate, a volatile stock market and a general reduction in consumer spending and confidence.

For the six months ended June 30, 2025, the company achieved sales of $10.85-million versus $17.27-million for the same period in 2024, a decrease of $6.42-million or 37.2 per cent. Gross profit for the six months ended June 30, 2025, was $2.68-million versus $3.17-million for the same period in 2024, a reduction of 484,000 or 15.3 per cent.

For the six months ended June 30, 2025, the company reduced its cash-based operating expenses from $2.38-million in the first half of 2024 to $1.88-million in 2025, representing an improvement (cost reductions) of $504,000 or 21.1 per cent year-over-year. Accordingly, the company was able to reduce its expenses and cover 104 per cent of the gross profit decrease in the first half of 2025. Most of the cost reductions were related to compensation and professional fees.

Ciscom achieved a cash-based operating profit (EBITDA) from continuing operations of $809,000 for the six-month period ended June 30, 2025, an improvement of $28,000 versus the same period in 2024 with an EBITDA of $781,000.

For the six-month period ended June 30, 2025, the company reported a net loss of $592,000 compared with a net loss of $186,000 for the same period in 2024. The difference in the financial performance is directly related to the one-time non-recurring charges totalling $657,000 in 2025 (2024: nil).

The company continues to carry significant non-cash expenses totalling $650,000 in the first half of 2025 (first half 2024: $783,000), which include share-based compensation, intangible assets amortization and deferred charges. Ciscom's operations generated significant positive cash flows of $679,000 in the six-month period ended June 30, 2025 (six-month 2024: $894,000).

"Following a strong growth year in 2024 that was dampened by the CPC labour dispute and a client's CCAA filing, we entered 2025 fully aware of the challenges ahead," reported Michel Pepin, president, chief executive officer and director of Ciscom. "Like other companies, we could not have predicted the impact related to the U.S. tariffs, their constant amendments and the uncertain economic environment it would create. We acted swiftly to restructure our cost base and took one-time charges which impacted earnings. This said, the team led by Dave Mathews and Sheri Rogers is active signing new clients and our revenue line is shoring up."

Board resignation

The company is also announcing that Stephen Lautens has resigned from the board of directors in order to focus on his growing consular/diplomatic responsibilities for Austria. The company is thankful for Mr. Lautens's key contributions and wishes him the best of successes.

Non-IFRS (international financial reporting standards) measures

This news release contains non-IFRS financial measures, in particular, EBITDA, calculated as total operating income (loss), excluding depreciation and amortization, stock-based compensation, other non-cash expenses. The closest comparable IFRS measure is total operating income (loss). Such measures are standard practices for emerging companies with significant non-cash items as part of management disclosures.

About Ciscom Corp.

Ciscom actively invests in, acquires and manages market leading companies within the information and communication technology (ICT) sector, with a specialty in AdTech and MarTech, targeting small and medium enterprises with proven profitability. This approach allows entrepreneurs to monetize their equity and continue contributing, enhancing shareholder value through acquisitions. As a leader in omni-media, particularly in data-driven marketing, Ciscom, through its subsidiaries, optimizes advertising spend across platforms, ensuring high return on investment (ROI) and customer engagement.

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