illumin Reports Third Quarter 2026 Financial Results
Exchange growth lifted revenue, but its increased contribution reduced gross margin to 35% from 37% a year earlier.
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
illumin (ILLMF) reported third-quarter 2026 revenue of C$42.7 million, up year-over-year as Exchange services drove growth across its advertising business. Exchange revenue rose 24% to C$25.5 million, while self-service revenue increased 3% and managed-service revenue fell 9%.
Gross profit increased 5% to C$14.9 million, but gross margin fell to 35% from 37% as Exchange contributed more revenue. Operating expenses declined to C$16.3 million from C$17.3 million. Adjusted EBITDA, a non-IFRS measure of earnings excluding specified items, improved to C$1.1 million from C$0.2 million. Net loss narrowed to C$1.8 million from C$2.1 million.
Cash totaled C$30.3 million at September 30, down C$3.4 million quarter-over-quarter. Nine-month revenue reached C$127.906 million, versus C$100.446 million a year earlier, while net loss narrowed to C$4.998 million from C$9.815 million.
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.
Positive
- Moderate pointThird-quarter revenue rose 12% year-over-year to C$42.7 million.
- Moderate pointThird-quarter gross profit increased 5% year-over-year to C$14.9 million.
- Moderate pointThird-quarter adjusted EBITDA improved to C$1.1 million from C$0.2 million a year earlier.
- Moderate pointThird-quarter net loss narrowed to C$1.824 million from C$2.148 million a year earlier.
- Moderate pointThird-quarter operating loss narrowed to C$1.412 million from C$3.089 million a year earlier.
12 minor points
- Minor pointExchange service revenue increased 24% year-over-year to C$25.5 million.
- Minor pointSelf-service revenue increased 3% year-over-year to C$8.6 million, representing 20% of revenue.
- Minor pointThird-quarter operating expenses declined to C$16.338 million from C$17.302 million a year earlier.
- Minor pointThird-quarter basic and diluted loss per share narrowed to C$0.03 from C$0.04 a year earlier.
- Minor pointNine-month revenue increased to C$127.906 million from C$100.446 million a year earlier.
- Minor pointNine-month gross profit increased to C$44.951 million from C$41.330 million a year earlier.
- Minor pointNine-month operating expenses declined to C$51.661 million from C$51.984 million a year earlier.
- Minor pointNine-month operating loss narrowed to C$6.710 million from C$10.654 million a year earlier.
- Minor pointNine-month adjusted EBITDA reached C$1.094 million, versus a C$1.239 million loss a year earlier.
- Minor pointNine-month net loss narrowed to C$4.998 million from C$9.815 million a year earlier.
- Minor pointNine-month basic and diluted loss per share narrowed to C$0.10 from C$0.19 a year earlier.
- Minor pointNine-month foreign exchange results improved to a C$1.197 million gain from a C$0.345 million loss.
Negative
- Moderate pointCash fell C$3.4 million quarter-over-quarter to C$30.3 million, versus C$43.820 million at December 31, 2025.
- Moderate pointThird-quarter gross margin declined to 35% from 37% a year earlier, reflecting increased Exchange contribution.
- Minor pointManaged-service revenue declined 9% year-over-year to C$8.5 million.
- Minor pointDemand-side platform revenue decreased approximately 3% year-over-year to C$17.1 million.
- Minor pointThird-quarter foreign exchange results shifted to a C$0.459 million loss from a C$0.901 million gain.
3 minor points
- Minor pointThird-quarter net finance income declined to C$0.283 million from C$0.376 million a year earlier.
- Minor pointNine-month net finance income declined to C$0.885 million from C$1.022 million a year earlier.
- Minor pointNine-month income taxes shifted to a C$0.370 million expense from a C$0.162 million benefit.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Third Quarter Revenue of
Exchange Revenue Grew
Adjusted EBITDA of
(All monetary figures are expressed in Canadian dollars unless otherwise stated)
TORONTO, Nov. 05, 2026 (GLOBE NEWSWIRE) -- illumin Holdings Inc. (TSX: ILLM and OTCQB: ILLMF) (“illumin” or the “Company”), a leader in digital advertising that brings strategy, activation and measurement together in one unified, AI-powered platform, today announced its financial results for the third quarter ended September 30, 2026.
Third Quarter 2026 Highlights
- Third quarter revenue rose
12% to$42.7 million from$38.2 million in the prior year, driven by higher Exchange service revenue growth. - Exchange service revenue increased
24% year-over-year to$25.5 million , driven by continued strong demand from new and existing customers and expanded publisher partnerships. - Self service revenue increased
3% year-over-year to$8.6 million and represented20% of total revenue. - Managed service revenue decreased
9% year-over-year to$8.5 million . - Overall, revenue from our demand-side platform remained relatively stable year-over-year, decreasing approximately
3% to$17.1 million , partly driven by a strategic shift away from lower-margin accounts. - Gross margin was
35% compared to37% in the prior year period, reflecting increased contribution from Exchange service. - Net revenue, or gross profit (revenue less media-related costs), increased
5% year-over-year to$14.9 million . - Operating expenses were
$16.3 million , a decrease of$1.0 million compared to the prior year, mainly driven by lower salaries and benefits from restructuring initiatives that were undertaken in previous periods. - Adjusted EBITDA was
$1.1 million , an improvement of$0.9 million year-over-year, primarily driven by higher revenue and cost optimization, partly offset by the revenue mix and higher sales costs associated with growth. - Net loss narrowed to
$1.8 million , down from$2.1 million in Q3 2025, primarily reflecting the increase in Adjusted EBITDA, lower severance costs, and lower share-based compensation expenses, partially offset by a shift to a foreign exchange loss position ($1.4 million ). - On December 31, 2025, the Company commenced a normal course issuer bid (“NCIB”) to purchase for cancellation up to 3,858,045 of its outstanding common shares. Under this NCIB, daily purchases are limited to 25,279 common shares. The NCIB may continue to December 30, 2026 or such earlier time as the NCIB is completed or terminated at the option of the Company. During the nine months ended September 30, 2026, under this NCIB, the Company purchased and cancelled 686,558 of its outstanding common shares at an average price of
$0.85 per share totaling approximately$0.6 million . - Cash and cash equivalents totaled
$30.3 million as at September 30, 2026, providing substantial liquidity to support the Company’s strategic growth initiatives. The$3.4 million quarter-over-quarter change primarily reflected planned platform investment, working capital timing, and lease payments. Excluding working capital timing, the Company generated positive cash from operations in the quarter, while working capital remained stable at$36.1 million .
Business Developments
- We announced our partnership with Audience Acuity in July 2026, bringing AI-powered audience intelligence covering over 253 million verified U.S. adults and 20 billion daily refreshed signals into illumin. Early campaigns have shown over
50% lower acquisition costs and 4x higher click-through rates compared with alternative audience strategies. - We are expanding AI across the illumin platform, including capabilities to help marketers uncover campaign insights and turn them into actionable reports, alongside strong early results from AI-powered bidding optimization and new campaign creation capabilities in development.
Tal Hayek, illumin’s Co-founder and Chief Executive Officer, commented:
“The third quarter marked an important period of strategic progress for illumin as we continued to position the Company for its next phase of growth. We are actively reshaping our sales organization and go-to-market strategy across North America, Europe, and Latin America to improve execution, strengthen customer engagement, and create a more scalable commercial organization.
At the same time, we reached a significant product milestone with the beta launch of our AI-powered infrastructure across campaign creation, reporting, and optimization, with a full release planned for the fourth quarter. We also continued to strengthen our Exchange business by expanding our premium publisher relationships and attracting additional demand.
Together, these initiatives reflect our commitment to building a more differentiated, efficient, and competitive technology platform, while establishing a stronger foundation for sustainable long-term growth and shareholder value.”
Michael Amaro, Interim Chief Financial Officer, commented:
“Our performance this quarter demonstrates solid top-line momentum, with revenue increasing and EBITDA improving as our strategic initiatives begin to take hold. We grew revenue by
The following table presents a reconciliation of Net Loss to Adjusted EBITDA for the periods ended:
| Three months ended | Nine months ended | |||||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||
| Net loss for the period | $ | (1,824 | ) | $ | (2,148 | ) | $ | (4,998 | ) | $ | (9,815 | ) |
| Adjustments: | ||||||||||||
| Finance income, net | (283 | ) | (376 | ) | (885 | ) | (1,022 | ) | ||||
| Foreign exchange loss (gain) | 459 | (901 | ) | (1,197 | ) | 345 | ||||||
| Depreciation and amortization | 1,832 | 1,619 | 5,196 | 4,492 | ||||||||
| Income tax expense (benefit) | 236 | 336 | 370 | (162 | ) | |||||||
| Share-based compensation | 583 | 971 | 1,425 | 2,761 | ||||||||
| Severance expenses | 50 | 379 | 1,059 | 1,828 | ||||||||
| Other non-recurring expenses | 34 | 274 | 124 | 334 | ||||||||
| Total adjustments | 2,911 | 2,302 | 6,092 | 8,576 | ||||||||
| Adjusted EBITDA | $ | 1,087 | $ | 154 | $ | 1,094 | $ | (1,239 | ) | |||
Conference Call Details
Third Quarter 2026 Earnings Call
Date: Thursday, November 5, 2026
Time: 8:30 AM Eastern Time
To register for the webcast and presentation, please visit:
https://events.illumin.com/q3-2026-earnings-call
Please connect 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast. A recording of the conference call webcast will be available after the call by visiting the Company’s website at https://illumin.com/investor-information.
Non-IFRS Measures
This press release makes reference to certain non-IFRS Accounting Standard measures (“non-IFRS measures”). These measures are not recognized measures under IFRS Accounting Standards (“IFRS”), do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures including “revenue less media-related costs”, “Gross margin”, and “Adjusted EBITDA” (as well as other measures discussed elsewhere in this press release).
The term “Gross margin” refers to the amount that “revenue less media-related costs” represents as a percentage of total revenue for a given period. Gross margin is used for internal management purposes as an indicator of the performance of the Company’s solution in balancing the goals of delivering excellent results to advertisers while meeting the Company’s margin objectives and, accordingly, the Company believes it is useful supplemental information. “Adjusted EBITDA” refers to net income (loss) after adjusting for finance costs (income), impairment loss, fair value gain, income taxes, foreign exchange loss (gain), depreciation and amortization, share-based compensation, acquisition and related integration costs, severance expenses, adjustments to the carrying value of investment tax credits receivable, and other non-recurring items. The Company believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company’s main business activities before taking into consideration how those activities are financed and taxed and prior to taking into consideration depreciation of property and equipment and certain other items listed above. It is a key measure used by the Company’s management and board of directors to understand and evaluate the Company’s operating performance, to prepare annual budgets and to help develop operating plans.
These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. We believe that securities analysts, investors, and other interested parties frequently use non-IFRS measures in the evaluation of issuers, and that these non-IFRS measures are relevant to their analysis of the Company.
About illumin
illumin is redefining how marketers plan, execute and measure digital advertising, bringing every stage of the campaign lifecycle into one strategic platform. Through an intuitive drag-and-drop Canvas, marketers can visually connect strategy, activation and outcomes, and extend live audiences from programmatic advertising into social channels. Combining AI-powered intelligence with transparent insights, illumin gives brands and agencies the clarity to make better decisions, optimize with confidence and prove business impact. With offices in North America, Europe, and South America, illumin supports brands and agencies across global markets. For more information, visit www.illumin.com.
See More. Achieve More.
Disclaimer with regard to forward looking statements
Certain statements included herein constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, the Company does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.
For further information, please contact:
Michael Amaro
Interim Chief Financial Officer
illumin Holdings Inc.
416-218-9888 (x5414)
investors@illumin.com
Please note that the following financial information is an extract from the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2026 and 2025 (the “Financial Statements”) provided for readers’ convenience and should be viewed in conjunction with the Notes to the Financial Statements, which are an integral part of the statements. The full Financial Statements and MD&A for the period may be found by accessing SEDAR+ at www.sedarplus.ca.
| illumin Holdings Inc. Condensed Interim Consolidated Statements of Financial Position (Unaudited) (In thousands of Canadian dollars) | ||||||
| September 30, 2026 | December 31, 2025 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 30,292 | $ | 43,820 | ||
| Accounts receivable | 37,996 | 36,094 | ||||
| Income tax receivable | 660 | 463 | ||||
| Prepaid expenses and other | 2,874 | 2,186 | ||||
| 71,822 | 82,563 | |||||
| Non-current assets | ||||||
| Other assets | 81 | 113 | ||||
| Property and equipment | 7,297 | 7,835 | ||||
| Intangible assets | 16,978 | 14,766 | ||||
| Goodwill | 4,870 | 4,870 | ||||
| 101,048 | 110,147 | |||||
| Liabilities | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | 35,027 | 39,154 | ||||
| Income tax payable | 42 | 274 | ||||
| Lease obligations | 639 | 598 | ||||
| 35,708 | 40,026 | |||||
| Non-current liabilities | ||||||
| Lease obligations | 3,603 | 4,072 | ||||
| 39,311 | 44,098 | |||||
| Shareholders’ equity | 61,737 | 66,049 | ||||
| 101,048 | 110,147 | |||||
| illumin Holdings Inc. Condensed Interim Consolidated Statements of Comprehensive Loss (Unaudited) (In thousands of Canadian dollars, except share amounts) For the three and nine months ended September 30, 2026 and 2025 | ||||||||||||
| Three months ended | Nine months ended | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Revenue | $ | 42,684 | $ | 38,241 | $ | 127,906 | $ | 100,446 | ||||
| Media-related costs | 27,758 | 24,029 | 82,955 | 59,116 | ||||||||
| Gross profit | 14,926 | 14,212 | 44,951 | 41,330 | ||||||||
| Operating expenses | ||||||||||||
| Sales and marketing | 6,769 | 7,324 | 22,167 | 22,142 | ||||||||
| Technology | 4,512 | 4,486 | 12,999 | 13,131 | ||||||||
| General and administrative | 2,642 | 2,902 | 9,874 | 9,458 | ||||||||
| Share-based compensation | 583 | 971 | 1,425 | 2,761 | ||||||||
| Depreciation and amortization | 1,832 | 1,619 | 5,196 | 4,492 | ||||||||
| 16,338 | 17,302 | 51,661 | 51,984 | |||||||||
| Loss from operations | (1,412 | ) | (3,089 | ) | (6,710 | ) | (10,654 | ) | ||||
| Finance income, net | (283 | ) | (376 | ) | (885 | ) | (1,022 | ) | ||||
| Foreign exchange (gain) loss | 459 | (901 | ) | (1,197 | ) | 345 | ||||||
| 176 | (1,277 | ) | (2,082 | ) | (677 | ) | ||||||
| Net loss before income taxes | (1,588 | ) | (1,812 | ) | (4,628 | ) | (9,977 | ) | ||||
| Income tax (benefit) expense | 236 | 336 | 370 | (162 | ) | |||||||
| Net loss for the period | (1,824 | ) | (2,148 | ) | (4,998 | ) | (9,815 | ) | ||||
| Basic and diluted net loss per share | (0.03 | ) | (0.04 | ) | (0.10 | ) | (0.19 | ) | ||||
| Other Comprehensive Loss | ||||||||||||
| Items that may be subsequently reclassified to net loss: | ||||||||||||
| Exchange (loss) gain on translating foreign operations | 42 | (210 | ) | (158 | ) | (584 | ) | |||||
| Comprehensive loss for the period | (1,782 | ) | (2,358 | ) | (5,156 | ) | (10,399 | ) | ||||
| illumin Holdings Inc. Condensed Interim Consolidated Statements of Cash Flows (Unaudited) (In thousands of Canadian dollars) For the nine months ended September 30, 2026 and 2025 | ||||||||
| 2026 | 2025 | |||||||
| Cash provided by (used in) | ||||||||
| Operating activities | ||||||||
| Net loss for the period | $ | (4,998 | ) | $ | (9,815 | ) | ||
| Adjustments to reconcile net loss to net cash flows | ||||||||
| Depreciation and amortization | 5,196 | 4,492 | ||||||
| Finance income, net | (885 | ) | (1,022 | ) | ||||
| Share-based compensation | 1,425 | 2,761 | ||||||
| Foreign exchange (gain) loss | (1,197 | ) | 345 | |||||
| Unpaid severance expense | 246 | 393 | ||||||
| Income tax expense (benefit) | 371 | (162 | ) | |||||
| Change in non-cash operating working capital | ||||||||
| Accounts receivable | (4,249 | ) | 7,729 | |||||
| Prepaid expenses and other | 40 | 457 | ||||||
| Other assets | 35 | 2 | ||||||
| Accounts payable and accrued liabilities | (2,479 | ) | (7,120 | ) | ||||
| Income taxes paid, net | (674 | ) | (565 | ) | ||||
| Interest received, net | 1,109 | 1,270 | ||||||
| (6,060 | ) | (1,235 | ) | |||||
| Investing activities | ||||||||
| Additions to property and equipment | (870 | ) | (1,486 | ) | ||||
| Additions to intangible assets | (6,007 | ) | (6,919 | ) | ||||
| (6,877 | ) | (8,405 | ) | |||||
| Financing activities | ||||||||
| Repayment of international loans | - | (52 | ) | |||||
| Payment of leases | (668 | ) | (1,519 | ) | ||||
| Repurchase of common shares for cancellation | (581 | ) | (1,229 | ) | ||||
| Proceeds from the exercise of stock options | - | 189 | ||||||
| (1,249 | ) | (2,611 | ) | |||||
| Decrease in cash and cash equivalents | (14,186 | ) | (12,251 | ) | ||||
| Impact of foreign exchange on cash and cash equivalents | 658 | (504 | ) | |||||
| Cash and cash equivalents – beginning of period | 43,820 | 55,952 | ||||||
| Cash and cash equivalents – end of period | 30,292 | 43,197 | ||||||
| Supplemental disclosure of non-cash transactions | ||||||||
| Unpaid additions (reversals) to property and equipment, net | (7 | ) | 162 | |||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were illumin's third-quarter 2026 revenue and earnings?
illumin reported C$42.7 million in revenue, up 12% year-over-year, and a net loss of C$1.824 million, compared with C$2.148 million a year earlier. Adjusted EBITDA, a non-IFRS earnings measure, increased to C$1.1 million from C$0.2 million.
Why did illumin's cash balance decline in the third quarter of 2026?
The C$3.4 million quarter-over-quarter cash decline primarily reflected planned platform investment, working capital timing and lease payments. Excluding working capital timing, operating cash generation was positive during the quarter. Working capital remained stable at C$36.1 million.
Why did illumin's demand-side platform revenue decline in the third quarter of 2026?
illumin attributed the decline partly to a shift away from lower-margin accounts. Demand-side platform revenue decreased approximately 3% year-over-year to C$17.1 million.