Adcore Inc.

All right, let's get started. Once again, thank you, good morning, and thank you for joining us. Earlier this morning, Adcor released its Q3 2025 financial results. Today, we'll be walking you through those results and provide an update on ongoing company initiatives. You might see some familiar faces on the call today. You'll see myself. I'm Nick Campbell, head of investor relations here at Adcore. Joining me is Omri Brill, Adcore CEO and founder, and Amit Comforti, Adcore CFO. The agenda for today, before we begin, we'll go over some forward-looking statements you should be aware of while listening to this call, followed by the CEO opening remarks. and then the CFO financial highlights. And finally, we will conclude with Q&A. If you do have a question during this call, please use the submit a question feature in Zoom, and we will get to those at the end of the call. Before we begin, I will give everyone a moment to review these statements. Just please bear in mind when you're listening to the call today, the management team might be using forward-looking statements, which are inherently uncertain in nature. All right, very good. And with that, I will pass the floor to Omri for the CEO opening remarks. Omri, the floor is yours.

Thank you, Nick, and good morning, everyone. It's our pleasure to be here today to discuss the company results for Q3 2025 and obviously the nine months of 2025 as well. So we have some high-level, you know, management, I would say, comments regarding the result. Also some new initiatives that I would like to share with our shareholders regarding, you know, what's new during the quarter. And I think there's a lot to discuss, so let's dive into it. And then start reviewing the results. Okay. So, eye level when we look at Q3 2025 results, I would say a few things that are jumping to everyone's eye. We saw a good growth coming from the EMEA region, up 25% year-on-year. EPA continued to grow 7% year-on-year, and basically we see tremendous momentum coming from this region. This is actually have been offsetting some of the substance we saw in North America. So two regions that are moving up, one region that basically is moving down, but all in all, I would say we are more or less, you know, doing okay. And another thing that was mentioned during this quarter that we saw like a significant improvement in the cost line items. R&D down 10% year-on-year, SG&A down 12% year-on-year, and actually adjusted EBITDA approved 56% year-to-date. In general, I would say when you look at a nine-month result, they are looking far sharper, you know, and, like, give us, like, the, you know, like, looking ahead to 2025, you know, like, with more optimistic. I would say one more thing that investors need to take into consideration is that the big quarter Q4 is, Literally happening right now. So we still have a lot to show up in 2025. So I think like nine months looking good, you know, 2025 compared to 2024, especially in the bottom line, adjusted EBITDA grew a lot, 56% in the nine months as compared to the previous nine months. in 2024, and this is a lot to expect, you know, from Q4 this year. So just high-level numbers. Obviously, Amit will discuss it in more detail. Top-line revenue, 7.6% compared to 7.8%. Sorry, it's not percent, 7.6 million in Q3 2025 compared to 7.8 million in 2020. q3 2024 it's a slight decrease but i would say more or less the same gross profit 3.1 million in the q3 2025 compared to 3.7 in the previous year again a slight decrease but but because of costs went down so it's just the dbda is actually not too bad and When we look at quarterly gross KPIs, you know, this is something we take into mind and say gross profit, 3.1 million. Again, you can see that is in line with the previous quarter in 2025, and Q4 should be far stronger. Cash and cash equivalent actually grew by 8% year-on-year. So all in all, I would say more or less a solid quarter. Just to sum up quarterly highlights, EMEA revenue grew by 25% year-on-year. APAC revenue grew by 7% year-on-year. Cash and cash equivalent grew by 8%. R&D expenses actually down 10%. They represent now 6% of total revenues and 7% in the previous year. SG&A down 12% or $376,000. And again, that's 12% decrease year-on-year. If you look at the nine months in 2025, then we can see HRC EBITDA almost up a few million compared to 310,000 in the previous year. Again, up 56% year on year. That's a big improvement. We have a reduction in net loss. in 2025 compared to 2021, from 1.26 in 2025 to 1.075 in 2025. Gross margins are more or less the same, 44%. This nine months, 2025, from there to 45%. And again, R&D expenses are actually down, representing 7% of total revenue compared to 8% of total revenue. And trust me, we continue to invest heavily in technology. So it's not like we took our foot from the gas. We're just doing stuff more efficiently, and I think Amit will talk about it in more detail as we move along. And we talk about some, you know, like, goals that we would like to achieve, and like I said, definitely we are on track for six straight quarters with positive adjusted EBITDA, definitely on track to AI-driven innovation, and basically the other goals, you know, it's TBD, but we need to see that we have a good finishing of Q4 in order to see if we can meet these goals or not. And so... But I would say the results telling the story, but they're telling the story of, I would say, the future of the current, you know, present of EdCorp and maybe even the past because it's already happened in Q3 2025, but definitely doesn't tell the story of the full story of the future of EdCorp. And I think a lot of the future of EdCorp is about technology and about innovation. And Proposely, I would say, is the spirit of this effort. And there's a lot going on in Proposely, and we would like to share some of it with you. And obviously, this was a big launch, Q3 2024, of two initiatives that are Proposely-related. We have an all-new marketing website for Proposely. and a whole new blog for Proposely as well. So if you go to Proposely.io, you can see the marketing website. We can visit it in a second and have a first glimpse of it and also the whole new blog, a lot of interesting content and article about Proposely. And let's see some examples. So let me start from the beginning. So that's the new marketing website. You see there's also a different brand identity for Proposely. You know it's much more modern, much more, I would say, cheerful and young. And basically a new slogan, Work Less, Win More. Win More is basically the main slogan of Proposely. This is the goal, this is the mission, to help businesses win more clients. This is what Proposely is all about. So that's obviously the ERO banner. We can go down and see what within, you know, like what you get within proposals. So obviously you get engaging presentation. You will get tailored proposals. You will get an add-on and upsell feature built in within the application. You can do online signatures, you know, like you can do online payments as well from within the app. And obviously ongoing project updates. So a single link sent to the client, to your client, will get all of that. So the presentation, the price quote, being able to select or, you know, change their price quote and add add-ons, making online signature, approve the agreement, making a payment and get the project out of it, everything within what we call the client portal. So it's much more than just, let's say, a price quote or a nice PDF sent to the client. Basically, it's everything that the clients need in order to close the deal and basically support the deal. Not only closing the deal, it's within this client portal. And that's a game changer. There's no other app on planet Earth that's offering the same value proposition. And that's something that is important to know about. Proposedly, we look at, let's say, an existing problem, which is one of the biggest problems of, let's say, traditional sales workflow, but come up with an all-new solution. And this is like a game changer of how businesses should do workflow or sales workflow in 2025, 2026, and beyond in the era of AI. So we listed some of the AI capabilities of the system as well. You can see, like we mentioned, proposed, we have like the team workspace, which is the business portal, more like a CRM, and the client tab, this is the proposal sent to the client, but they're actually an online website. And like the different teams that can benefit from Propose.ly, whether it's leadership team, sales team, marketing team, legal team, HR, finance, all different team types that can benefit from Propose.ly. And also we listed, you know, like some sample proposal, made in proposal, sent to clients, you know, and you can see like an example proposal for, you know, vacation house in Greece, for example, a construction, a roofing installation in California, for example, for a family, whether it's a clinic, you know, treatment plan. a static limit, a marketing agency offering, or whether it's an Alpine ski vacation. And actually, if we have time, we can view one presentation like this, not a presentation, a proposal sent to a client. So this is like, when we send it, we send a link to the client, the client get the link, click on it, and this is what you're going to see. We can also decide whether you need to log in in order to see it, or can you just view it like that. or maybe log in on action, but basically, this is the intro, I would say, slide looking very nice, you know, like, who don't like skiing slow, so it looks nice, you know, by definition, I would say. And then, when you scroll down into the presentation, you can see, on the right side, you can see summary bar, you know, with the current cost, you know, some kind of what's included in the package, for example, And you see some, let's say, gallery, image gallery from the resort itself, for example, looks very nice. And again, about the resort, maybe the location of the hotel, the specific location of the hotel. How far away is it from the slopes, you know? And everything you need to know about your package. Also the agenda, for example. All of this being customized from Propose.ly backend. So it's not like a template you need to go and basically just put the data or images or text. Like everything is customizable. You can decide which slides you want to use, what slide type, what content to create. And it's like creating this type of proposal, like for somebody that knows the system, can take minutes, not hours or anything like that. It's pretty easy. We have AI to help you to do it. This is like a countdown slide. So you see you have 92 days before the vacation started. So it's pretty exciting, like less than 100 days. So there's a lot to wait for. some other supporting slide. And this is where it's getting interesting. We can see, you know, like you can select the base package, for example. So you can select whether you want it for four guests, five guests, or for six guests and different price per guest, for example. And then there's an upgrade options, you know, that you can choose whether you want to upgrade your room, health insurance maybe to add, equipment rental. So it is a lot of, let's say, or maybe ski lessons as well. So everything is baked into the system. I don't need to go out. I don't need to, you know, to try to go now to rent a car from different places, to rent a car or rent a gear from a different location. Everything is within the system. There's a payment summary, how much I'm going to end up paying. And obviously if there's agreement, I need to accept it so I can see the agreement, you know, like for the vacation, for example, everything done online. And obviously make the payment, pay now, pay in 30 days, I can pay in installments, for example. Again, everything backed into this client portal. A Q&A, for example. So all of that look like million dollar, but trust me, didn't cost the business that just prepared this presentation million dollar and sent to the client. So also think from the business side, think from the client perspective as well. This is look nothing less than astonishing. And this is being done with Proposely and ready to send to the client and for him to sign there, to view it. to sign it, to pay, to choose the upgrade, you know, and to continue. Basically, any relationships that you would like to continue with the company can be done from this client portal. So if in the future you need another edition, I can add it to the client portal, and you can go ahead and pay for it, for example. Okay. Second thing that I would like to discuss is the new blog. So you can go online to blog.proposy.io and basically there's a lot of new content, a lot of articles that our staff wrote about Proposy. I think what should be interesting to shareholders is basically, there's a lot of articles that compare Proposely to potential competitors. Let's say, for example, Proposely bestsells any book, or Proposely references Wheeler, for example. So you can see how Proposely is positioned, how competitors are positioned within the market, and what is the value proposition that we bring to the market as well. Very interesting. I encourage everyone to go online and start, you know, surfing the blog and see which articles they like and would like to to be more educated about proposals. I think between the marketing website, Proposal.io, and the blog website, blog.proposal.io, you have a lot to learn about proposals, and I think that's a game changer, because we talk about it up until now, but now we can actually learn about it, see it yourself, see different proposals, and you get a different or better understanding about what is the true value proposition of the system. So next topic or next thing that is new in Q3 2025, we discuss in detail in the last Ernie call, the magic that our studio can create using AI for motion videos, right? So we can create motion videos that look, you know, like commercial grade. They are ready for Super Bowl, but actually cost $3,000 for this. Sorry, not $300,000 to produce them. And that's a big change. That's a game-changing. And what we did right now, we opened an all-new AI Studio page under our edco.com website. So you can go to edco.com, go to Marketing Solutions, click on AI Creative Studio, and you can see the different videos that we created for our clients, for potential clients, and we continue to update these things. this page and adding more amazing video as we move along, but it doesn't matter almost which video you selected, trust me, there are nothing less than amazing. So that's a big, big game changer, and all of them you can find online in adcore.com as well. Last but not least of what's new in Q3 2024, actually two weeks ago we had an event to open a community bicycle park in the south of Israel, what we call a field park. That's in a in the south of Israel. And was one of the initiator of this park. We donated money to this project. We've been part of this project. And basically, we are very proud, you know, for what this project is all about. You can see this project, you know, construction on the undergoing in the In the bottom image and how beautiful it looks now that everything is ready. Over here on the left side, you can see a pump truck where you can ride bicycle. On the right side, you can see an area for skateboarding. This is ready to use for the kids of this specific kibbutz and the entire area. And again, this is part of who we are, you know, how committed to our communities. And this is something we're very proud of. So again, it's a moment. to be proud, to be thankful that we can be part of such an amazing AIR project as well. And I know it's a big transition, you know, between talking about, you know, all this new and exciting stuff and what basically the comparables look like. And, again, like if you look at the comparable in the current share price, 0.24 cents as of yesterday, then I think there's a lot of upside, right? 450% almost if you look into gross profit. sorry, EBITDA almost 100% upside, so I think like, I didn't sell single shares up until now, from the time we went public, and I'm still the biggest believer, you know? I mean, Ethel is doing good, and we're doing great in the future, and I think, like, you will see, like, you will see that this company is not about just talking. Every day, we work very hard in building the future of this company, the future for ourselves and for our shareholders, to be, you know, one of the most successful technology companies out there, especially, you know, In Canada, there's not a lot of technology companies. I think Ethco can shine in this specific market as well and be, you know, like a beacon or a success story about the technology company, you know, like operating from Tel Aviv as well, you know, from Canada, from Toronto, Canada as well, and be very successful, a very big success story. And I think that's concluded my part, my remarks. You know, we covered some remarks regarding the result. Like I mentioned, Q3, these, like, some very positive things, like the growth that we saw in, for example, the inner region and epic region, you know, like the reduced cost as well. Nine months, if you look at nine months, it's even stronger, 56% adjusted. beta growth, you know, and I think they tell even a better story about 2025 and the way the company is positioned. But I think maybe the most important thing is to understand it's not about what's happening now or even a bit in the past because it's already Q3, you know, like it was a quarter ago. It's about the future of the company and the future of the company is bright. There's a lot of new technology development going on. I think there's a lot to be excited about in 2026. And with that, I will move it to Amit.

Thank you and good morning everyone.