Adcore Reports Third Quarter 2026 Results: Gross Margin Rises to 64%, Operating Loss Halved, Cash Up to $4.3 Million as Restructuring Takes Hold
Adcore expects a return to operating profitability in Q4 after restructuring began in September and was substantially complete in October.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Adcore (ADCOF) reported third-quarter 2026 gross margin of 64%, while revenue declined and its operating loss narrowed from the preceding quarter. Revenue was CAD5.770 million versus CAD7.648 million a year earlier; gross profit rose to CAD3.678 million from CAD3.069 million. Operating loss was CAD263,000 versus CAD570,000 in Q2 and CAD278,000 a year earlier. Net loss widened to CAD543,000 from CAD448,000.
Operating cash flow turned positive at CAD0.9 million. September-end cash was CAD4.323 million, above approximately CAD4.0 million in June but below CAD10.281 million at year-end 2025. Adcore expects Q4 operating profit of approximately CAD500,000–CAD700,000, with the restructuring's full effect from Q1 2027 onward. Its review of funding, partnerships or divestiture for Proposaly, AI Studio and Total Eclipse continues; no transactions have been agreed.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.Adcore expects Q4 operating profit of approximately CAD500,000–CAD700,000 and operating profitability thereafter.
- Moderate pointQ3 gross profit rose 20% year over year to CAD3.678 million from CAD3.069 million.
- Moderate pointQ3 gross margin reached 64%, versus 40% a year earlier and 51% in Q2 2026.
- Moderate pointQ3 operating loss narrowed to CAD263,000, from CAD570,000 in Q2 and CAD278,000 a year earlier.
- Moderate pointQ3 operating cash inflow of CAD0.9 million replaced outflows of CAD1.5 million a year earlier and CAD0.4 million in Q2.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Adcore expects monthly operating expenses of roughly CAD0.9 million by year-end, versus roughly CAD1.3 million in Q3.
12 minor points
- Minor pointQ3 cost of revenue fell 54% year over year and 41% sequentially to CAD2.092 million.
- Minor point. Forward-looking: it has not happened yet and may not happen.Restructuring was substantially complete by October 2026; Adcore anticipates its full effect from Q1 2027 onward.
- Minor pointQ3 North America revenue rose 27% to CAD1.3 million from CAD1.0 million a year earlier.
- Minor pointQ3 research and development expense fell to CAD473,000 from CAD491,000 a year earlier, down 15% sequentially.
- Minor pointNine-month gross profit rose 13% to CAD10.5 million from CAD9.2 million.
- Minor pointNine-month gross margin increased to 49% from 44% a year earlier.
- Minor pointNine-month cost of revenue fell 8% to CAD11 million from CAD12 million.
- Minor pointNine-month North America revenue rose 15% to CAD4.2 million from CAD3.7 million.
- Minor pointNine-month APAC revenue rose 6% to CAD11.7 million from CAD11.1 million.
- Minor pointTrade payables declined to CAD4.615 million at September-end from CAD8.382 million at year-end 2025.
- Minor pointAdcore reported no debt at September 30, 2026.
- Minor point. Forward-looking: it has not happened yet and may not happen.Adcore plans a return of capital to shareholders as results allow.
Negative
- Moderate pointQ3 revenue declined to CAD5.770 million from CAD7.648 million a year earlier.
- Moderate pointQ3 net loss widened to CAD543,000 from CAD448,000 a year earlier.
- Moderate pointSeptember-end cash of CAD4.323 million fell from CAD10.281 million at year-end, despite rising from approximately CAD4.0 million in June.
- Moderate pointQ3 selling, general and administrative expense rose to CAD3.468 million from CAD2.856 million year over year, despite falling 6% sequentially.
- Minor pointQ3 basic and diluted loss per share widened to CAD0.009 from CAD0.007 a year earlier.
5 minor points
- Minor pointQ3 finance expense increased to CAD289,000 from CAD184,000 a year earlier.
- Minor pointQ3 finance income declined to CAD9,000 from CAD47,000 a year earlier.
- Minor pointQ3 adjusted EBITDA, a non-GAAP earnings measure, was CAD112,000, versus CAD122,000 year-earlier and CAD42,000 in Q2.
- Minor pointSeptember-end shareholders' equity declined to CAD8.517 million from CAD10.280 million at year-end 2025.
- Minor pointAI portfolio funding, partnership and divestiture options remain under review, with no transactions agreed.
AI-generated analysis. How Rhea-AI works. Not financial advice.
TORONTO, ON / ACCESS Newswire / November 10, 2026 / Adcore Inc. ("Adcore" or the "Company") (TSX:ADCO)(OTCQX:ADCOF)(FSE:ADQ), a global marketing-technology company operating an AI-powered Marketing Cloud, today announced financial results for the three months ended September 30, 2026.
The third quarter is starting to show the early effect of the company-wide restructuring announced on October 21, 2026. The restructuring began in September 2026 and was substantially complete by October 2026, thus Q3 reflects only a partial-quarter benefit; the fourth quarter of 2026 is anticipated to demonstrate a significantly greater impact from the updated cost structure, with the full effect from the first quarter of 2027 onwards.
Third quarter 2026 highlights (Q3 2026 vs. Q3 2025 unless stated)
- Gross profit of
$3.7 million , up20% year over year, on revenue of$5.8 million . - Gross margin of
64% , up from40% a year earlier and51% in Q2 2026, as cost of revenue fell54% year over year and41% quarter over quarter. - Operating loss narrowed to
$263,000 , down54% from$570,000 in Q2 2026. - Positive Adjusted EBITDA of
$112,000 , up from$42,000 in Q2 2026. - Cash from operating activities of
$0.9 million in the quarter, compared with cash used in operating activities of$1.5 million in Q3 2025 and cash used of$0.4 million in Q2 2026. - Cash of
$4.3 million at September 30, 2026, up from approximately$4.0 million at June 30, 2026, notwithstanding restructuring costs incurred in the quarter. The Company has no debt. - North America revenue was
$1.3 million , up27% from$1.0 million in Q3 2025. - Total operating expenses decreased
7% to$3.9 million from$4.2 million in Q2 2026, with SG&A down6% and R&D down15% .
Nine months 2026 highlights (vs. nine months 2025)
- Gross profit of
$10.5 million , up13% from$9.2 million ; gross margin of49% , up from44% . - Cost of revenue of
$11 million , down8% from$12 million . - North America revenue of
$4.2 million , up15% from$3.7 million ; APAC revenue of$11.7 million , up6% from$11.1 million .
Q4 2026 Outlook
As announced on October 21, 2026, the Company expects to return to operating profitability in the fourth quarter of 2026, targeting operating profit of approximately
Omri Brill, CEO and Founder of Adcore, commented: "Q3 is the first quarter where you can start to see the effect of the restructuring we described on October 21. Gross margin went from
Mr. Brill continued: "Revenue was lower, and I want to be direct about why. We made a strategic decision to focus on higher-margin revenue and let lower-margin business go, even though it was adding to the top line. The numbers show that it was the right call: cost of revenue fell by more than half, and gross profit went up while revenue went down. We are running a smaller top line that earns more. That is the trade we chose, and we would make it again."
Mr. Brill added: "The balance sheet tells the same story. We ended the quarter with
"Q4 is the first quarter with nearly the full new cost base in the numbers, and we expect it to be the first operating profit this company has reported since Q4 2025. From there, the plan has not changed: a lean, profitable, cash-generating operating business, external capital for the AI products, and a return of capital to shareholders as results allow."
CONFERENCE CALL AND WEBCAST INFORMATION
Adcore will host a webcast and conference call to discuss Q3 results on Tuesday, November 10, 2026, at 10:00 a.m. ET.
To register for the conference call/webcast please click here or visit: https://link.adcore.com/Q3-2026.
The conference call will include a brief statement by management and will focus on answering questions about Adcore's Q3 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
(Expressed in CAD Thousands)
| Three Months Ended | ||||||||
| September 30, 2026 | September 30, 2025 | |||||||
Operating (loss) profit | (263 | ) | (278 | ) | ||||
Depreciation and amortization | 349 | 361 | ||||||
Share-based payments | 16 | 20 | ||||||
Other non-recurring items | 10 | 19 | ||||||
Total Adjustments | 375 | 400 | ||||||
Adjusted EBITDA | 112 | 122 | ||||||
ADCORE INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Expressed in CAD Thousands)
| Three Months Ended | ||||||||
| September 30, 2026 | September 30, 2025 | |||||||
Revenue | 5,770 | 7,648 | ||||||
Cost of revenues | 2,092 | 4,579 | ||||||
Gross profit | 3,678 | 3,069 | ||||||
Research and development, net | 473 | 491 | ||||||
Selling, general and administrative expenses | 3,468 | 2,856 | ||||||
Operating loss | (263 | ) | (278 | ) | ||||
Finance expense | 289 | 184 | ||||||
Finance income | (9 | ) | (47 | ) | ||||
Taxes on income | - | 33 | ||||||
Net loss | (543 | ) | (448 | ) | ||||
Basic loss per share attributable to shareholders | (0.009 | ) | (0.007 | ) | ||||
Diluted loss per share attributable to shareholders | (0.009 | ) | (0.007 | ) | ||||
ADCORE INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed in CAD Thousands)
September 30, 2026 | December 31, 2025 | |||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | 4,323 | 10,281 | ||||||
Trade accounts receivable, net | 4,553 | 5,215 | ||||||
Other accounts receivable | 392 | 413 | ||||||
Total current assets | 9,268 | 15,909 | ||||||
| NON-CURRENT ASSETS: | ||||||||
Property, plant and equipment, net | 946 | 1,055 | ||||||
Intangible assets, net | 5,604 | 4,622 | ||||||
Total non-current assets | 6,550 | 5,677 | ||||||
Total assets | 15,818 | 21,586 | ||||||
CURRENT LIABILITIES: | ||||||||
Trade accounts payable | 4,615 | 8,382 | ||||||
Other accounts payable | 2,106 | 2,233 | ||||||
Lease liability | 234 | 217 | ||||||
Total current liabilities | 6,955 | 10,832 | ||||||
NON-CURRENT LIABILITIES: | ||||||||
Accrued severance pay, net | 10 | 8 | ||||||
Deferred tax liability, net | - | - | ||||||
Lease liability | 336 | 466 | ||||||
Total non-current liabilities | 346 | 474 | ||||||
SHAREHOLDERS' EQUITY: | ||||||||
Share capital | 11,608 | 11,201 | ||||||
Additional paid in capital | 4,134 | 3,960 | ||||||
Treasury stocks | (1,086 | ) | (1,050 | ) | ||||
Actuarial reserve | (102 | ) | (102 | ) | ||||
Retained earnings | (6,037 | ) | (3,729 | ) | ||||
Total Equity | 8,517 | 10,280 | ||||||
TOTAL LIABILITIES AND EQUITY | 15,818 | 21,586 | ||||||
ABOUT ADCORE
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, its Q4 and 2027 outlook including its expectation to return to operating profitability in Q4, the review of strategic alternatives, continued execution on the Company's restructuring and of any of the Company's potential plans. 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/
| Zehavit Dan | Martijn van den Bemd | |||
| General Counsel & Corporate Secretary | Chief Partnerships Officer | |||
| Telephone: +972-3-566-3444 | Telephone: 647-497-5337 | |||
| Email: zehavit@adcore.com | Email: martijn@adcore.com |
SOURCE: Adcore Inc.
View the original press release on ACCESS Newswire
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Adcore's main Q3 2026 financial results?
Adcore reported CAD5.770 million in revenue, gross margin of 64% and an operating loss of CAD263,000. Revenue was CAD7.648 million a year earlier, when gross margin was 40% and operating loss was CAD278,000. Net loss widened to CAD543,000 from CAD448,000.
What is Adcore's operating profit outlook for Q4 2026?
Adcore targets approximately CAD500,000 to CAD700,000 in Q4 2026 operating profit and expects to remain profitable on an operating basis thereafter. The restructuring began in September 2026 and was substantially complete by October, with its full effect anticipated from Q1 2027 onward.
Why did Adcore's revenue decline in Q3 2026?
Adcore said it chose to focus on higher-margin revenue and let lower-margin business go. Q3 revenue declined to CAD5.770 million from CAD7.648 million a year earlier, while gross profit increased to CAD3.678 million from CAD3.069 million.