Adcore Reports Second Quarter 2025 Results
Rhea-AI Summary
Adcore (OTCQX:ADCOF), a marketing technology company, reported its Q2 2025 financial results with mixed performance. Revenue slightly decreased by 1% to CAD$6.5 million compared to Q2 2024, while gross profit increased 6% to CAD$3.1 million. The company showed significant improvement in profitability metrics, with gross margin expanding to 47% from 44% year-over-year.
Notable highlights include a strong 35% growth in APAC revenue to CAD$3.6 million and improved cash position of CAD$9.0 million, up 23% year-over-year. The company achieved positive Adjusted EBITDA of CAD$156 thousand, compared to negative CAD$173 thousand in Q2 2024. Adcore also announced progress with its new BETA-stage app, Proposaly, featuring AI-powered proposal creation and enhanced enterprise features.
Positive
- Gross margin improved to 47% from 44% year-over-year
- APAC revenue grew significantly by 35% to CAD$3.6 million
- Cash position increased 23% to CAD$9.0 million year-over-year
- Achieved positive Adjusted EBITDA of CAD$156K vs negative CAD$173K in Q2 2024
- Operating loss reduced to CAD$466K from CAD$779K year-over-year
Negative
- Revenue declined 1% year-over-year to CAD$6.5 million
- Net loss of CAD$425K, though improved from CAD$691K in Q2 2024
- Working capital decreased to CAD$6.3 million from CAD$7.3 million in December 2024
News Market Reaction 1 Alert
On the day this news was published, ADCOF declined 8.32%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Improved Gross Margins, Positive Adjusted EBITDA, and Robust APAC Growth
(All figures in CAD unless otherwise stated)
TORONTO, ON / ACCESS Newswire / August 13, 2025 / Adcore Inc. (the "Company" or "Adcore") (TSX:ADCO)(OTCQX:ADCOF)(FSE:ADQ), a global leader in marketing technology empowering businesses to maximize their digital marketing potential with its innovative AI-powered platform ("Marketing Cloud"), today announced its financial results for the three months ended June 30, 2025.
Omri Brill, Adcore CEO and Founder commented, "In Q2, we saw meaningful improvements in gross margin, Adjusted EBITDA, and the cash balance compared to the prior year's Q2 - all trending in the right direction. This is a testament to Adcore's continued efforts and focus on improving operational efficiency. The work leading up to today has positioned us for success in the second half of the year, where we anticipate expanding budgets and elevated activity."
Mr. Brill continued, "As we look to the second half of the year, we are more energized than ever. Our newest app, Proposaly - now in its BETA stage - is already proving its potential to transform how businesses manage and close deals by streamlining and optimizing sales workflows. With powerful new features such as our new payment request document type, AI-powered proposal creation, and advanced enterprise-grade user access management, Proposaly is expanding its use cases and delivering more value to our clients."
Mr. Brill concluded, "At the same time, the AI revolution is driving a step-change in our own operational efficiency, allowing us to deliver better results faster and at scale. These innovations, combined with our sharpened focus and growing momentum, position Adcore to capture new opportunities and accelerate growth in the months ahead."
Second Quarter Highlights:
Revenue for the three months ended June 30, 2025, was CAD
Gross profit for the three months ended June 30, 2025, was CAD
Gross margin for the three months ended June 30, 2025, was
Adjusted EBITDA for the three months ended June 30, 2025 was CAD
APAC revenue for the three months ended June 30, 2025, was CAD
Cash and cash equivalents as of June 30, 2025, were CAD
Working Capital for the six months ended June 30, 2025 was CAD
CONFERENCE CALL AND WEBCAST INFORMATION
Adcore will host a webcast and conference call to discuss those results on Wednesday August 13, 2025, at 10:00 a.m. ET.
To register for the conference call/webcast please click here or visit: https://investors.adcore.com/Q22025.
The conference call will include a brief statement by management and will focus on answering questions about Adcore's results. Questions regarding results can be sent in advance to invest@adcore.com.
USE OF NON-IFRS MEASURES
Management uses Adjusted earnings before interest, income taxes, depreciation, and amortization ("Adjusted EBITDA") as a key financial metric to evaluate Adcore's operating performance and for planning and forecasting future business operations. Adjusted EBITDA excludes significant items that are non-operating in nature in order to evaluate Adcore's core operating performance against prior periods. Adjusted EBITDA is not a measure of financial performance under GAAP and should be considered in addition to, and not as a substitute for net earnings, overall change in cash or liquidity of the business as a whole. Management believes the use of Adjusted EBITDA allows investors and analysts to understand the results of the continuing operations of the Company.
ADCORE INC.
ADJUSTED EBITDA
(Express in CAD Thousands)
Three Months Ended | ||||||||
June 30, 2025 | June 30, 2024 | |||||||
Operating (loss) profit | (466 | ) | (779 | ) | ||||
Depreciation and amortization | 354 | 380 | ||||||
Share-based payments | 65 | 16 | ||||||
Other non-recurring items | 203 | 210 | ||||||
Total Adjustments | 622 | 606 | ||||||
Adjusted EBITDA | 156 | (173 | ) | |||||
ADCORE INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Express in CAD Thousands)
Three Months Ended | ||||||||
June 30, 2025 | June 30, 2024 | |||||||
Revenue | 6,532 | 6,592 | ||||||
Cost of revenues | 3,456 | 3,679 | ||||||
Gross profit | 3,076 | 2,913 | ||||||
Research and development, net | 513 | 579 | ||||||
Selling, general and administrative expenses | 3,030 | 3,113 | ||||||
Operating loss | (466 | ) | (779 | ) | ||||
Finance expense | 99 | 169 | ||||||
Finance income | (141 | ) | (31 | ) | ||||
Taxes on income | - | (226 | ) | |||||
Net loss | (425 | ) | (691 | ) | ||||
Basic loss per share attributable to shareholders | 0.010 | 0.011 | ||||||
Diluted loss per share attributable to shareholders | 0.010 | 0.011 | ||||||
ADCORE INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed in CAD Thousands)
June 30, 2025 | December 31, 2024 | |||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | 9,001 | 10,803 | ||||||
Trade accounts receivable, net | 3,688 | 6,561 | ||||||
Other accounts receivable | 372 | 624 | ||||||
Total current assets | 13,062 | 17,988 | ||||||
NON-CURRENT ASSETS: | ||||||||
Property, plant and equipment, net | 1,144 | 1,306 | ||||||
Intangible assets, net | 4,004 | 4,137 | ||||||
Total non-current assets | 5,148 | 5,443 | ||||||
Total assets | 18,210 | 23,431 | ||||||
CURRENT LIABILITIES: | ||||||||
Trade accounts payable | 4,219 | 8,156 | ||||||
Other accounts payable | 2,376 | 2,355 | ||||||
Lease liability | 204 | 200 | ||||||
Total current liabilities | 6,799 | 10,711 | ||||||
NON-CURRENT LIABILITIES: | ||||||||
Accrued severance pay, net | 10 | 10 | ||||||
Deferred tax liability, net | - | - | ||||||
Lease liability | 551 | 670 | ||||||
Total non-current liabilities | 561 | 680 | ||||||
SHAREHOLDERS' EQUITY: | ||||||||
Share capital | 11,126 | 11,760 | ||||||
Additional paid in capital | 3,864 | 4,018 | ||||||
Treasury stocks | (1,043 | ) | (1,043 | ) | ||||
Actuarial reserve | (102 | ) | (102 | ) | ||||
Retained earnings | (2,995 | ) | (2,593 | ) | ||||
Total Equity | 10,850 | 12,040 | ||||||
TOTAL LIABILITIES AND EQUITY | 18,210 | 23,431 | ||||||
ABOUT ADCORE INC.
Adcore is a leading AI-powered marketing technology company.
By combining extensive industry knowledge and experience with its proprietary artificial intelligence (AI) powered technology, Adcore offers a unique digital marketing solution that empowers entrepreneurs and advertisers by managing and automating their e-commerce store advertising and monitoring and analyzing the performance of their advertising budget to ensure maximum Return on Investment. Adcore is a certified Google Premier Partner, Elite Tier Microsoft Partner, Facebook Partner, Verified Amazon Partner, and TikTok Partner.
Established in 2006, the Company employs over fifty people in its headquarters in Tel Aviv, Israel and satellite offices in Toronto, Canada, Melbourne, Australia, Hong Kong and Shanghai, China.
For more information about Adcore, please visit https://www.adcore.com/investors/,https://www.adcore.com/blog or follow us on LinkedIn.
FORWARD-LOOKING STATEMENTS
This press release contains or may contain certain forward-looking statements, including statements about the Company. Wherever possible, words such as "may", "will", "should", "could", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict" or "potential" or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management as at the date hereof.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
For further information, please contact:
ADCORE INC.
https://www.adcore.com/investors/
Nick Campbell, CFA | Martijn van den Bemd | |||
Investor Relations | Chief Partnerships Officer | |||
Telephone: 905-630-0148 | Telephone: 647-497-5337 | |||
Email: nickc@adcore.com | Email: martijn@adcore.com |
SOURCE: Adcore Inc.
View the original press release on ACCESS Newswire
FAQ
What were Adcore's (ADCOF) key financial metrics for Q2 2025?
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