Metaguest Achieves First Positive EBITDA and Reduces Q2 Net Loss by 89%

Rhea-AI Summary

Metaguest (CSE: METG, MGSTF) reported its first-ever positive quarterly EBITDA for the three months ended June 30, 2026, posting EBITDA of $99,273 versus negative $215,321 a year earlier. Net loss and comprehensive loss for the quarter fell by about 89% to $41,786 from $363,764, reflecting improved operating efficiency.

For the six months ended June 30, 2026, net loss and comprehensive loss decreased by $563,494, or roughly 69%, to $247,482, while EBITDA improved to positive $39,549 from negative $530,218. Revenue was $1,222,556 versus $1,304,854 in 2025, but cost of sales declined to $130,776 from $183,615, lifting gross margin to about 89.3% from 85.9%. According to Metaguest, tighter financial controls, cost optimization and stronger governance supported these results.

Positive

• First positive quarterly EBITDA: $99,273 in Q2 2026 vs $(215,321) in Q2 2025
• Q2 net loss reduced ~89%: $41,786 vs $363,764 year over year
• Six‑month EBITDA turnaround: $39,549 vs $(530,218) in the prior‑year period
• Six‑month net loss down ~69%: $247,482 vs $810,976
• Gross margin improvement: ~89.3% vs 85.9% on lower cost of sales

Negative

• Revenue decline: $1,222,556 for six months 2026 vs $1,304,854 in 2025
• Company remains unprofitable: Q2 net loss $41,786 and six‑month net loss $247,482

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Toronto, Ontario--(Newsfile Corp. - August 21, 2026) - Metaguest.AI Incorporated (CSE: METG) ("Metaguest" or the "Company"), a leader in AI-driven guest engagement and commerce solutions for the hospitality industry, is pleased to announce a significant milestone: the first positive quarterly EBITDA in the Company's history. For the three months ended June 30, 2026, Metaguest achieved EBITDA of $99,273, compared with negative EBITDA of $215,321 in the prior-year quarter, while reducing net loss and comprehensive loss by approximately 89% to $41,786 from $363,764.

Second Quarter 2026

Metaguest's second-quarter results marked an important turning point. Net loss and comprehensive loss improved by $321,978, or approximately 89%, to $41,786 from $363,764, while EBITDA improved by $314,594 to positive $99,273 from negative $215,321. Together, these results demonstrate the substantial progress made in strengthening the Company's operating foundation.

Six Months Ended June 30, 2026

Net loss and comprehensive loss decreased by $563,494, or approximately 69%, to $247,482 from $810,976. EBITDA improved by $569,767 to positive $39,549 from negative $530,218. Revenue was $1,222,556, compared with $1,304,854 in 2025, while cost of sales decreased to $130,776 from $183,615. As a result, gross margin improved to approximately 89.3% from 85.9%.

Operating Performance

This milestone follows a comprehensive internal review of the business and a series of decisive actions to build a stronger, more efficient organization. The Company enhanced financial controls and governance procedures, introduced more disciplined expenditure approval and cash-management processes, optimized its cost structure and allocation of capital, and strengthened oversight of its internal technology and operating processes. These initiatives helped Metaguest generate positive EBITDA for both the quarter and the year-to-date period despite modestly lower revenue.

Colin Keddy, President and Director of Metaguest, commented: "Achieving positive EBITDA for the first time in Metaguest's history is a meaningful milestone for our team and our shareholders. It reflects the difficult but necessary work undertaken across the business to strengthen our controls, improve governance, optimize our cost structure and sharpen the way we operate. We are proud of the progress made and believe Metaguest is emerging as a more focused and disciplined company, with a stronger foundation from which to advance our technology and growth strategy."

Non-IFRS Financial Measure

EBITDA is a non-IFRS financial measure and does not have a standardized meaning prescribed by IFRS. It may not be comparable to similarly titled measures presented by other issuers. EBITDA is calculated as net loss before interest and accretion, income taxes, depreciation and amortization. Management uses EBITDA to assess the performance of the Company's principal business activities before the effects of its financing structure, income taxes and non-cash depreciation and amortization charges. EBITDA should not be considered in isolation or as a substitute for financial measures prepared in accordance with IFRS.

Reconciliation of net loss and comprehensive loss to EBITDA

	Three months 2026	Three months 2025	Six months 2026	Six months 2025
Net loss and comprehensive loss	$(41,786)	$(363,764)	$(247,482)	$(810,976)
Interest and accretion	51,322	45,894	107,558	75,659
Income taxes	-	-	-	-
Depreciation and amortization	89,737	102,549	179,473	205,099
EBITDA	$99,273	$(215,321)	$39,549	$(530,218)

 

About Metaguest.AI Incorporated

Metaguest.AI is a next-generation technology company focused on enhancing the guest experience through advanced AI solutions. Its flagship platform provides an end-to-end guest engagement ecosystem, covering everything from pre-arrival to post-departure. Features include on-property e-commerce with digital payments, real-time service requests, mobile check-out, personalized in-room controls, local experience and event bookings, and a multilingual virtual concierge—all accessible without downloading an app or visiting a website. Hotels, resorts, and short-term rental operators use Metaguest to boost efficiency, drive incremental revenue, and elevate customer satisfaction.

For more information about Metaguest and its innovative digital concierge services or to invest, please visit http://www.metaguest.ai or please contact:

Colin Keddy, President and Director
Email: colin@metaguest.ai
Tel: 613-907-9159

Robert Lelovic, Chief Financial Officer
Email: robert@metaguest.ai
Tel: 416-302-0779

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/310764

FAQ

What were Metaguest (MGSTF) key financial results for Q2 2026?

Metaguest reported positive Q2 2026 EBITDA of $99,273 and a net loss of $41,786. According to Metaguest, this compares with negative EBITDA of $215,321 and a net loss of $363,764 in Q2 2025, marking a substantial improvement in operating performance.

Did Metaguest (MGSTF) achieve its first positive EBITDA in Q2 2026?

Yes, Metaguest achieved its first positive quarterly EBITDA in Q2 2026, totaling $99,273. According to Metaguest, EBITDA improved by $314,594 from negative $215,321 in Q2 2025, reflecting cost optimization, stronger financial controls and more disciplined cash‑management processes across the business.

How much did Metaguest (MGSTF) reduce its Q2 2026 net loss compared with 2025?

Metaguest reduced its Q2 2026 net loss and comprehensive loss by about 89% to $41,786. According to Metaguest, this is an improvement of $321,978 from the prior‑year loss of $363,764, demonstrating progress in strengthening its operating foundation and expense discipline.

How did Metaguest (MGSTF) perform in the first six months of 2026?

For the first half of 2026, Metaguest posted positive EBITDA of $39,549 and a net loss of $247,482. According to Metaguest, net loss decreased by $563,494 versus 2025, while revenue was $1,222,556 and gross margin improved to about 89.3%.

What happened to Metaguest (MGSTF) revenue and gross margin in early 2026?

Metaguest’s six‑month 2026 revenue was $1,222,556, slightly below $1,304,854 in 2025, but gross margin improved. According to Metaguest, cost of sales dropped to $130,776 from $183,615, lifting gross margin to roughly 89.3% from 85.9%.

How does Metaguest (MGSTF) define and use EBITDA in its reporting?

Metaguest defines EBITDA as net loss before interest and accretion, income taxes, depreciation and amortization. According to Metaguest, this non‑IFRS measure helps management assess the performance of its principal business activities before financing structure, income taxes and non‑cash depreciation and amortization charges.