Adcore Inc.

Good morning and welcome to AgCourse Q4 and full-year 2025 conference call. We will give guests another moment to join, so I ask you to please sit back, relax, and we will begin shortly. Thank you to all our new guests who have joined. The call will begin momentarily. We're just giving people another moment to join. Okay, very good. Let's begin. Once again, good morning and thank you for joining ADCOR's Q4 in 2025 financial results earnings call. This morning ADCOR released its financial results and you might have seen we finished 2025 on a high note, finishing with 8% increase in revenue compared to Q4 2024. Today we'll be going over those results in detail and provide you an update on ongoing company initiatives. Today, you'll hear some familiar voices from myself, Nick Campbell, Head of Investor Relations here at I-Corps. You'll hear from Omri Brill, I-Corps CEO and Founder, and Amit Comforti, I-Corps CFO. The agenda for today, before we begin, we'll go over some forward-looking statements you should be aware of when listening to this call. Then it will be followed by the CEO opening remarks, followed by the CFO financial highlights, and finally Q&A. If you do have a question during this call, I'll ask you to use the submit a question feature in Zoom, and that will be addressed at the end. So before we begin, I'll give everyone a moment to review this, but just please be aware during this call we will be discussing items that are forward-looking and somewhat uncertain in nature. I'll give everyone 30 seconds to review this excerpt, and then we will begin. Okay, very good. And with that, I am going to pass the mic to Omri for the CEO opening remarks. Omri, the floor is yours.

Thank you very much, Nick. And good morning, everyone. Not every day we have the chance to speak about the company resource for Q4 2025 and full year of 2025. It's only happened once a year, I guess. So today is a special day for us, and we're happy to be here. But I would say what I would like to cover today is obviously what we've been able to achieve in Q4 and the full year 2025, but equally important, maybe share with the shareholders some of the highlights of what we anticipate to see in 2026, because we already started 2026. I don't know if you notice it or not, but I think like it's more for that, you know, also forward looking and not just like backward looking. So let me share my screen and then we can jump right to it. One second. Okay, let's go. So like I mentioned, we ended 2025 with a strong note, 8% Q4 growth. Cash flow, correct me if I'm wrong, Amit, but I think that's the second biggest quarter in terms of cash flow generated. from operational activity in Q4 2025. And equally important, we are entering 2026 as an AI-first company. We'll cover what exactly does it mean for us, for U.S. shareholders. We enter with a very strong momentum, you know, with new partnerships that we're going to discuss. And also with a strong balance sheet, you know, to basically fuel all the growth we anticipate to see in 2026 and beyond. So, like I said, strong finish of 2025 and very strong start of 2026 as well, and even accelerating the momentum in 2026. If we talk about quarterly revenue result, total top line revenue amended to a bit more than $12 million, 12.1 to be accurate in Q4 2025. That represents 8% year-on-year growth compared to Q4 2024, sorry, which amended to a bit more than $11 million. A quality gross KPI, gross profit in Q4 2025 was 3.8 million, almost equal to 3.9 million that we achieved in Q4 2024. If we look at the cash and cash equivalents, so a bit more than 10 million in Q4 2025, very similar to the results that we've been able to achieve in Q4, 2024 as well. So maintaining a very high level of cash and cash equivalent, it's a massive jump from 7.3 that we've been able to achieve in Q3, 2025. So more than 3%, 3 million, sorry, in Canadian dollar difference. So again, Earning highlights for the report, highlights for the quarter. Q4 revenue up 8% year-on-year. APAC region exploded with almost 40% year-on-year gross Q4 2025. Near record Q4 operating cash flow, 4.17 million, 9% EUR growth, very strong, second strongest quarter for us in the company history in terms of cash flow. Q4 operating profit turned positive this quarter as we anticipated and share with our shareholders as well. And positive adjusted EBITDA is actually the sixth consecutive quarter that we've been able to demonstrate or to deliver a positive adjusted EBITDA, which is strong. And some earnings report highlights for a full year 2025. So revenue growth for the entire year by 3% year-on-year to more than 33 million Canadian dollar. APAC revenue sales by 34% for the full year, which is big. Operation cash flow remained strongly positive, $2.2 million. So even if we have negative quarter, we can definitely see that we still have full year positive operational cash flow, and cash position reserved strong at $10.3 million at the end of 2025. So all in all, like I said, strong finish of the year of 2025, and I would say strong result all in all in, I would say, full year 2025. But equally important, like I mentioned before, 2025 result is a thing of the past. We also want to talk about the future and what 2026 is going to look like, what we anticipate. Sorry to say in 2026, and let's jump right to it. So we call 2026 the year of acceleration. We see like a fast acceleration in almost every different department or things that we do in EDCO. And this gives us a lot of confidence that basically this can be a breakthrough year for the company. If you look at Edcore, there's a lot of, I would say, history and a lot of experience built up in this company. So we have 20 years of digital marketing expertise, which is massive. Actually, in June this year, in 2026, we're going to mark our 20th anniversary. So that's a big milestone for the company. We have more than 50 years in software development, so a lot of experience, a lot of tools that we develop already over the years, and 10 years of strategic partnership with all the major platforms. But what we see now with AI, AI is like the spark that ignites fast acceleration across all these different departments, whether it's digital marketing and services solution, software development for sure, AI is the king over there, and also strategic partnership. Everything tied together and everything now is accelerating thanks to AI. and we're going to discuss how AI affecting the company and how Edco is going to look like a very different company. I would say similar yet very different company in 2026 and beyond. So just to give you some numbers and metrics beyond when we say acceleration, what do we mean? So let's talk about Australia, for example. You know a key region, Australia represents like 40-50% of the entire impact region to date?

Yeah, usually.