Tiny Reports Q2 2026 Results
Rhea-AI Summary
Tiny (TSX:TINY, OTC:TNYZF) reported Q2 2026 revenue of $51.6 million, up 3% year-over-year on a constant-currency basis, while organic revenue declined 4%. Recurring revenue rose 32% to $17.4 million, reaching 34% of total revenue, and annualized recurring revenue was $69.6 million.
Adjusted EBITDA increased 29% to $10.6 million (21% margin), but Tiny posted a net loss of $83.0 million versus net income of $11.0 million a year earlier, largely due to $80.7 million of non-cash impairments at WeCommerce and Creative Market, plus restructuring and executive transition costs. EBITDA was negative $71.3 million. Tiny ended the quarter with $31.6 million in cash, total debt of $142.0 million including convertible debentures, and net debt to Adjusted EBITDA of 2.8x. Tiny Fund I LP delivered 15% revenue growth and increased Tiny’s NAV interest to $46.4 million.
Positive
- Revenue up 3% year-over-year to $51.6 million
- Recurring revenue up 32% to $17.4 million, now 34% of total
- Adjusted EBITDA up 29% to $10.6 million, 21% margin
- Software and Apps Adjusted EBITDA up 54% to $7.3 million
- Tiny Fund I NAV interest up 4% to $46.4 million; $0.5 million distributions
- Net debt to Adjusted EBITDA at 2.8x, $2.8 million debt repaid in quarter
Negative
- Net loss of $83.0 million vs. $11.0 million net income in Q2 2025
- Asset impairments of $80.7 million at WeCommerce and Creative Market
- Organic revenue down 4% year-over-year
- EBITDA fell to negative $71.3 million from $21.9 million
- Free cash flow down to $0.6 million from $4.8 million
- Total debt including debentures up 5% to $142.0 million
AI-generated analysis. How Rhea-AI works. Not financial advice.
Total revenue of
$51.6 million , a3% year-over-year increase on a constant currency basis1Recurring revenue1 of
$17.4 million , a32% increase year-over-year, representing34% of total revenueAnnualized recurring revenue1 of
$69.6 million , a32% increase year-over-yearAdjusted EBITDA1 of
$10.6 million , a29% increase year-over-year, representing a21% margin1Received
$0.5 million of distributions from Tiny Fund I LP
Victoria, British Columbia--(Newsfile Corp. - August 6, 2026) - Tiny Ltd. (TSX: TINY) ("Tiny" or the "Company"), a holding company that acquires wonderful businesses for the long term, announced the financial results for the three and six months ended June 30, 2026 ("Q2 2026") today. Currency amounts are expressed in Canadian dollars unless otherwise noted.
Portfolio Company Highlights
Serato continued to grow and materially increased the quality and predictability of Tiny's revenue, with recurring revenue representing approximately
70% of Serato's revenue base. Its performance contributed to a54% year-over-year increase in Tiny's Software and Apps Adjusted EBITDA.Letterboxd surpassed 30.7 million members at quarter-end, an increase of
43% year-over-year and185% since being acquired by Tiny Fund I, as it continues to strengthen its position as the leading social network for film.Metalab continued to see strong demand for its services, although the timing of projects affected Q2 revenue. Activity strengthened meaningfully in June, and that momentum has continued into Q3, supported by several new enterprise engagements, including continued work with Yahoo, new opportunities with Questrade and a launch with Mistral.
Metalab Ventures Fund I's early investment in xAI now represents an indirect interest in SpaceX; Tiny holds an approximately
14% limited partner interest in Metalab Venture Fund I.Creative Platform benefited from a one-time enterprise agreement at Dribbble. Outside of that agreement, underlying revenue pressures remained at Creative Market.
WeCommerce continued to experience revenue pressure affected in part by conditions in the broader e-commerce ecosystem. The business completed significant leadership, headcount and cost actions that are expected to generate material annual savings
Q2 results reflect only a portion of those savings, with the benefit expected to become more visible over the coming quarters.
Q2 2026 Operational & Financial Overview
Revenue increased
3% on a constant currency basis to$51.6 million . Organic revenue1 declined4% , primarily reflecting pressure at WeCommerce and project start timing in Digital Services, partially offset by Serato and a one-time Creative Platform enterprise agreement.Recurring revenue increased
32% to$17.4 million and now represents34% of total revenue, up from26% a year ago, reflecting Tiny's continued shift toward higher-quality, recurring revenue. Annualized recurring revenue1 was$69.6 million .Adjusted EBITDA1 increased
29% to$10.6 million , representing a21% margin, underscoring improved profitability despite moderate revenue growth.Net loss of
$83.0 million , primarily due to$80.7M of non-cash impairments at WeCommerce and Creative Market, along with portfolio review write-downs and restructuring, and executive transition costs.Leadership, headcount and cost actions across the portfolio and at head office established a more efficient cost base. Q2 reflected more of the associated cost than the benefit, which should become more visible over the coming quarters.
Net Debt to Adjusted EBITDA was 2.8x1. Tiny repaid
$2.8 million of debt during the quarter; foreign-exchange movements increased the reported balance by$1.8 million , resulting in a net reduction of$1.0 million .Subsequent to quarter-end, Tiny repaid
$1.6 million of debt, the majority of which was voluntary, highlighting its continued commitment to balance-sheet management.
Management Commentary
"Q2 was deliberately a clean-up quarter for Tiny. Alongside my transition into the CEO role, we undertook a comprehensive review of carrying values, cost structures and operating plans across the portfolio. That work resulted in significant non-cash impairments, restructuring costs and difficult decisions. We own those outcomes. In several cases, prior expectations did not materialize, so we have reset our forecasts and plans on a more conservative footing. I'm pleased with the discipline the team brought to this work and believe it establishes a stronger foundation from which to build.
"Performance across the portfolio was uneven, but several businesses delivered strong results. Our shift toward higher-quality recurring revenue is improving the durability of Tiny's earnings, with Serato meaningfully accelerating that shift. Metalab continues to see strong demand, with activity strengthening in June and that momentum continuing into Q3. Letterboxd continued to grow its presence and cultural relevance in film, setting record membership numbers. At the same time, WeCommerce and Creative Market remained under revenue pressure. We want to be clear about both sides of performance in the quarter.
"We also made significant leadership, headcount and cost changes across the portfolio and at head office. Q2 reflected meaningful associated costs but only a portion of the expected benefits, which should become more visible over the coming quarters. The work is not finished, but much of the clean-up to date is now behind us. From here, our priorities are to improve operating performance and cash conversion, reduce leverage, and allocate capital carefully. We will continue to evaluate opportunities to monetize select assets where it makes sense, while also looking for new businesses that can add to the portfolio over time. We enter the second half of the year with greater operating discipline, a clearer view of the portfolio and confidence in Tiny's path forward," said Austin Singhera, Chief Executive Officer of Tiny.
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Revenue | 51,560,349 | 50,000,797 | 103,050,230 | 98,062,762 | ||||||||
| Operating loss | (8,028,808 | ) | (4,622,626 | ) | (10,581,857 | ) | (6,128,000 | ) | ||||
| Net loss/(income) | (83,020,205 | ) | 10,990,846 | (93,203,668 | ) | 6,985,449 | ||||||
| EBITDA1 | (71,322,139 | ) | 21,913,696 | (67,453,727 | ) | 29,383,163 | ||||||
| EBITDA %1 | ( | ( | ||||||||||
| Adjusted EBITDA1 | 10,632,014 | 8,232,481 | 19,854,548 | 17,948,686 | ||||||||
| Adjusted EBITDA %1 | 21 % | 16 % | 19 % | 18 % | ||||||||
| Recurring revenue1 | 17,394,204 | 13,194,947 | 35,006,824 | 23,002,818 | ||||||||
| Recurring revenue %1 | 34 % | 26 % | 34 % | 23 % | ||||||||
| Cash provided by operating activities | 5,390,398 | 6,167,181 | 8,508,356 | 10,124,471 | ||||||||
| Free cash flow1 | 648,919 | 4,820,766 | 217,791 | 8,067,806 | ||||||||
| Basic (loss)/earnings per share | (2.63 | ) | 0.40 | (2.99 | ) | 0.27 | ||||||
| Diluted (loss)/earnings per share | (2.63 | ) | 0.39 | (2.99 | ) | 0.28 | ||||||
| Free cash flow per share1 | 0.02 | 0.18 | 0.01 | 0.32 | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||||||
| Total assets | 374,770,016 | 464,980,329 | ||||||||||
| Investment in Tiny Fund I LP | 46,421,013 | 44,726,952 | ||||||||||
| Total liabilities | 241,440,272 | 239,009,430 | ||||||||||
| Non-current financial liabilities | 167,229,938 | 184,912,614 | ||||||||||
| 1. Refer to Non-IFRS Measures for further information. 2. On October 1, 2025, the Company completed a consolidation (the "Share Consolidation") of the Company's issued and outstanding Class A common shares (each, a "Common Shares") at a consolidation ratio of eight (8) pre-Share Consolidation Common Shares for every one (1) post-Share Consolidation Common Share. Unless otherwise indicated, all disclosures of Common Shares and securities convertible into Common Shares are presented on a post-Share Consolidation basis. | ||||||||||||
Revenue in Q2 2026 was
$51.6 million , an increase of$1.6 million or3% (3% on a constant currency basis1) compared to Q2 2025. Constant currency represents revenue growth excluding the impact of foreign exchange.Net loss in Q2 2026 was
$83.0 million compared to net income of$11.0 million in Q2 2025, a change of$94.0 million . The Company recognized impairment of$80.7 million as a result of a decline in recoverable asset value at WeCommerce and Creative Market.Organic revenue growth1 decreased by
4% compared to Q2 2025, primarily reflecting revenue decline at WeCommerce and Digital Services. The Digital Services comparative period included a large customer contract, which has since concluded, and a full quarter of Z1 results, which was divested in April 2026.Recurring revenue1 in Q2 2026 was
$17.4 million , an increase of$4.2 million or32% compared to Q2 2025. The increase reflects the positive impact of the Serato Acquisition, which has a70% recurring revenue base. Recurring revenue %1 increased to34% of total revenue, compared to26% in Q2 2025.EBITDA1 in Q2 2026 was negative
$71.3 million , a decrease of$93.2 million from$21.9 million in Q2 2025, primarily due to impairment of assets of$80.7 million , non-cash fair value adjustments (contingent consideration and redemption liability of$6.2 million and gain on investments of$2.5 million ), and foreign exchange movements on the Company's U.S.-denominated debt.The Company also incurred one-time expenses for severance of
$2.2 million and restructuring costs, related to executive transition, of$2.0 million .Adjusted EBITDA1 increased
29% to$10.6 million in Q2 2026, compared to$8.2 million in Q2 2025, driven by growth in Software and Apps, Digital Services, and Creative Platform, as well as cost reductions and operational efficiencies implemented across the portfolio.Segmented Adjusted EBITDA1 in Q2 2026 when compared to Q2 2025:
Software and Apps was
$7.3 million , an increase of$2.6 million or54% , primarily due to Serato's growth and full quarter contribution, and WeCommerce's strategic realignment and resulting cost savings, which are expected to have a greater impact in Q3.Creative Platform was
$2.2 million , an increase of$1.9 million or620% , largely attributable to a significant enterprise deal recognized in the quarter.Digital Services was
$4.3 million , a decrease of$1.6 million or27% compared to Q2 2025, largely reflecting the timing of key customer projects across the two periods. Performance strengthened through the back half of the quarter as several large customer contracts began in June 2026, building strong momentum for the segment.
Cash on hand on June 30, 2026 was
$31.6 million , an increase of$2.3 million from$29.3 million on December 31, 2025.Total debt outstanding, excluding Tiny's
$36.1 million principal amount of secured convertible debentures due in 2030 (the "Convertible Debentures"), as of June 30, 2026 was$105.9 million compared to$98.7 million on December 31, 2025. As of June 30, 2026, the Convertible Debentures had a face value of$36.1 million , which refers to the principal amount owing at maturity, excluding the impact of any unamortized discount, premium, or issuance costs.Total debt, including the face value of the Convertible Debentures, increased
5% to$142.0 million as at June 30, 2026 compared to$134.8 million as at December 31, 2025. During the three months ended June 30, 2026, the Company repaid$2.8 million of debt. However, foreign exchange movements increased the reported debt balance by$1.8 million , resulting in a net decrease in debt of$1.0 million during the quarter.Cash flow from operations was
$5.4 million , down$0.8 million from$6.2 million in Q2 2025, driven by the timing of working capital requirements and collections.Free cash flow1 in Q2 2026 was
$0.6 million compared to$4.8 million in Q2 2025, with the decrease attributable to working capital timing and higher interest and income tax payments.
Tiny Fund Performance
Tiny Fund I LP generated combined unaudited revenue of
$18.3 million (USD$13.2 million ) in Q2 2026 compared to$15.9 million (USD$11.5 million ) in Q2 2025.The
15% revenue increase was due to a strong quarter for AeroPress, continued growth at Letterboxd, and further distribution opportunities for Mateina driven by the strength of the ongoing partnership with Dr. Andrew Huberman.Based on Tiny's ownership of Tiny Fund I LP, the net asset value of Tiny's interest was
$46.4 million (USD$32.7 million ) on June 30, 2026 an increase of$1.7 million or4% from December 31, 2025. The Company received distributions of$0.5 million in Q2 2026.
Quarterly Conference Call and Business Update
The Company will hold a conference call to provide a business update on Thursday, August 6, 2026, at 11:00 a.m. ET. The call will be hosted by:
Austin Singhera, CEO
Mike McKenna, CFO
A question & answer session will follow the business update.
Conference Call Details
Date: Thursday, August 6, 2026
Time: 11:00 am ET
Dial-in Numbers: Canada Local +1 365 657 4084 or Toll-Free +1 833 796 6440
United States Local: +1 626 884 3620 or Toll-Free: +1 833 461 5787
Access Code: 200896137
This live call is also being webcast and can be accessed by going to: https://events.q4inc.com/attendee/200896137.
Financial Statements
Tiny Ltd.'s Interim Consolidated Financial Statements and Management's Discussion and Analysis for Q2 2026 are available on SEDAR+ at www.sedarplus.ca.
About Tiny
Tiny is a Canadian holding company that acquires wonderful businesses using a founder-friendly approach. It focuses on companies with unique competitive advantages, recurring or predictable revenue streams, and strong free cash flow generation. Tiny typically holds businesses for the long-term, with a parent-level focus on capital allocation, collaborative management and operations, and incentive structures within the operating companies to drive results for Tiny and its shareholders.
Tiny currently has three principal reporting segments: Digital Services, which help some of the world's top companies design, build and ship amazing digital products; Software and Apps, which is home to Serato, the world's leading DJ software, and WeCommerce, a collection of leading application and theme businesses powering global e-commerce merchants; and Creative Platform, which is composed primarily of Dribbble, the social network for designers and digital creatives, as well as Creative Market, a premier online marketplace for digital assets such as fonts, graphics and templates.
For more about Tiny, please visit www.tiny.com or refer to the public disclosure documents available under Tiny's profile on SEDAR+ at www.sedarplus.ca.
Cautionary Note Regarding Forward-Looking Information
Certain statements in this press release may constitute forward-looking information or forward-looking statements (together, "forward-looking statements") that reflect management's current expectations regarding the Company's future growth, financial performance, business prospects and opportunities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate", "believe", "plan", "forecast", "expect", "estimate", "predict", "intend", "would", "could", "if", "may" and similar expressions. This press release includes, among others, forward-looking statements regarding the Company's financial profile, operational performance, Tiny's portion of the net asset value of Tiny Fund I LP, Tiny's ability to integrate acquisitions, the Company's use and implementation of AI strategies, and the future plans and strategies of the Company, its portfolio companies and subsidiaries. These statements reflect current expectations of management regarding future events and speak only as of the date of this press release. In addition, forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
By their nature, forward-looking statements require management to make various assumptions and are subject to inherent risks and uncertainties. There is a significant risk that such predictions, forecasts, conclusions or projections will not prove to be accurate, that management's assumptions may not be accurate and that actual results, performance or achievements may differ significantly from such predictions, forecasts, conclusions or projections expressed or implied by such forward-looking statements. We caution readers not to place undue reliance on the forward-looking statements in this press release as a number of factors, many of which are beyond the Company's control, could cause actual future results, conditions, actions or events to differ materially from the targets, outlooks, expectations, goals, estimates or intentions expressed in the forward-looking statements. These factors include, but are not limited to: short term liabilities; the failure to integrate acquisitions; entering new markets; funding future acquisitions; the Company's dependence on positive cash flows and its ability to source new financing; management of growth; the failure to realize expected benefits from the use of artificial intelligence ("AI"), including, without limitation, the broader impact of AI on the Company's revenue and operations; information technology and cyber security; global financial conditions; the Company's ability to maintain its obligations under its credit facilities; interest rates; the Company's ability to enforce claims against sellers; conflicts of interest among the directors and officers of the Company; regulatory risks; foreign jurisdictions; tariffs and the volatility of trade agreements; payment processing; actual or perceived breach of data privacy and security laws; intellectual property; technological changes; internal controls; competition within ecommerce markets; confidential information; reliance on the Shopify platform; reliance on management and key employees; resale of shares; market for securities; legal claims; tax; the requirements of being a public company; and credit exposure. For a more detailed discussion of the Company's risk factors, see the list of risk factors in the Company's Annual Information Form dated March 30, 2026 which is available on SEDAR+ at www.sedarplus.ca under the Company's profile.
Forward-looking statements and information, including future-oriented financial information or financial outlook, are based on assumptions and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied herein to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information, including, without limitation: the potential impact of the Company's acquisitions and dispositions on relationships, including with regulatory bodies, stock exchanges, lenders, service providers, employees and competitors; risks related to the successful integration of acquired businesses; credit, liquidity and additional financing risks; potential conflicts of interest; general economic conditions; industry conditions; technological advancement; political volatility; currency fluctuations; competition from other industry participants; and stock market volatility. This list is not exhaustive of the factors that may affect any of the forward-looking information contained herein.
The Company cautions that the foregoing list is not exhaustive of all possible factors, as other factors could adversely affect our results. When relying on our forward-looking statements to make decisions with respect to the Company and its securities, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise indicated, the information in this press release is current as of the date of this press release and the Company does not intend, and disclaims any obligation, to update any forward-looking statements, whether written or oral, or whether as a result of new information or otherwise, except as may be required by law.
Non-IFRS Measures
This press release contains certain non-International Financial Reporting Standard ("IFRS") financial measures. These measures are not recognized measures under IFRS accounting standards as issued by the International Accounting Standards Board. These financial measures do not have standardized meanings prescribed under IFRS and our computation may differ from similarly-named computations as reported by other entities and, accordingly, may not be comparable. These financial measures should not be considered as an alternative to, or more meaningful than, measures of financial performance as determined in accordance with IFRS as an indicator of performance. The Company believes these measures may be useful supplemental information to assist investors in assessing our operational performance and our ability to generate cash through operations. The non-IFRS measures also provide investors with insight into our decision making as we use these non-IFRS measures to make financial, strategic and operating decisions. The Company's management also uses non-IFRS financial measures to facilitate operating performance comparisons from period to period and prepare annual budgets and forecasts.
Because non-IFRS measures do not have a standardized meaning and may differ from similarly-named computations as reported by other entities, securities regulations require that non-IFRS measures be clearly defined and qualified, reconciled with their nearest IFRS measure and given no more prominence than the closest IFRS measure.
Non-IFRS measures are not audited. Unless otherwise indicated, the financial information presented in this press release is prepared in accordance with IFRS accounting standards as issued by the International Accounting Standards Board. These non-IFRS measures have important limitations as analytical tools and investors are cautioned not to consider them in isolation or place undue reliance on ratios or percentages calculated using these non-IFRS measures.
The Company uses non-IFRS measures in this press release including "EBITDA", "EBITDA %", "Adjusted EBITDA", "Adjusted EBITDA %", "Segmented Adjusted EBITDA", "Segmented Adjusted EBITDA %", "recurring revenue", "recurring revenue %" or "recurring revenue as a percentage of total revenue", "annualized recurring revenue", "organic revenue growth", "constant currency", "free cash flow", and "free cash flow per share". Management uses these non-IFRS measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation.
The non-IFRS financial measures referred to in this press release are further detailed below and in the Company's management discussion and analysis for the three and six months ended June 30, 2026 and 2025 under the heading "Non-IFRS Measures", which is incorporated by reference herein and is available at www.tiny.com and under Tiny's profile on SEDAR+ at www.sedarplus.ca.
NON-IFRS MEASURES RECONCILIATIONS
EBITDA and Adjusted EBITDA
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Net (loss)/income | $ | (83,020,205 | ) | $ | 10,990,847 | $ | (93,203,668 | ) | $ | 6,985,450 | ||
| Income tax expense/(recovery) | (2,404,441 | ) | (1,666,830 | ) | (2,588,074 | ) | (1,126,638 | ) | ||||
| Depreciation and amortization | 10,818,912 | 9,562,814 | 21,885,774 | 18,248,515 | ||||||||
| Interest expense | 3,283,595 | 3,026,865 | 6,452,241 | 5,275,836 | ||||||||
| EBITDA | (71,322,139 | ) | 21,913,696 | (67,453,727 | ) | 29,383,163 | ||||||
| EBITDA Adjustments | ||||||||||||
| Share of earnings from equity investments | (532,486 | ) | (4,312,293 | ) | (1,593,780 | ) | (4,792,069 | ) | ||||
| Loss on sale of subsidiary | 159,652 | - | 159,652 | - | ||||||||
| Fair value adjustment on investments | (2,502,819 | ) | - | (1,825,252 | ) | - | ||||||
| Fair value adjustment to financial instruments | 172,769 | 122,488 | 961,430 | 525,113 | ||||||||
| Fair value adjustment to contingent consideration | (5,383,527 | ) | - | (3,236,088 | ) | (285,526 | ) | |||||
| Fair value adjustment to redemption liability | (853,891 | ) | - | (585,051 | ) | - | ||||||
| Business acquisition costs | 28,994 | 2,154,385 | 49,977 | 3,616,601 | ||||||||
| Share-based compensation | (175,821 | ) | 736,452 | 84,700 | 1,447,830 | |||||||
| Impairment of assets1 | 84,208,600 | - | 84,208,600 | - | ||||||||
| Foreign exchange | 2,745,290 | (5,196,970 | ) | 4,738,510 | (4,958,879 | ) | ||||||
| Other income | (417,613 | ) | (7,586,732 | ) | (586,645 | ) | (7,751,286 | ) | ||||
| Severance expenses2 | 2,210,218 | 201,627 | 2,556,355 | 276,880 | ||||||||
| Restructuring3 | 2,032,159 | 471 | 2,032,159 | 23,398 | ||||||||
| Transactional-related costs4 | 208,844 | 348,006 | 262,344 | 371,251 | ||||||||
| Other public company costs5 | 53,784 | (148,649 | ) | 81,364 | 92,210 | |||||||
| Adjusted EBITDA6 | 10,632,014 | 8,232,481 | 19,854,548 | 17,948,686 | ||||||||
| 1.Impairment of assets includes both impairment of non-financial and financial assets. For the three and six months ended June 30, 2026 the Company recognized 2. Severance expenses relate to costs incurred from employee terminations as a result of a workforce reduction and are included in Compensation on the Company's Interim Condensed Consolidated Statements of Net loss and Comprehensive loss for Q2 2026 and Q2 2025 ("the Statements of Net (loss)/income"). 3. Restructuring costs represent expenses related to organizational changes undertaken as the Company evolves as a public company, including leadership changes, workforce realignment, and other reorganization efforts. These costs are included in Professional fees on the Statements of Net (loss)/income and, in respect of executive transition costs, in Compensation on the Statements of Net (loss)/income. 4. Transactional-related costs relate to fees incurred for capital raising activities, credit facilities, and acquisition-related accounting. These costs are included in the Professional fees line on the Statements of Net (loss)/income. 5. Other public company costs relate to the Company's graduation to the TSX, an internal controls project, and conversion of Tiny Fund entities to IFRS compliance and are included in Professional fees on the Statements of Net (loss)/income. 6. The Company did not have adjustments related to non-recurring project costs or software implementation costs for the three and six months ended June 30, 2026 and 2025. However, the Company may incur such costs in future periods. | ||||||||||||
EBITDA % and Adjusted EBITDA %
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| EBITDA (negative) | $ | (71,322,139 | ) | $ | 21,913,696 | $ | (67,453,727 | ) | $ | 29,383,163 | ||
| Revenue | 51,560,349 | 50,000,797 | 103,050,230 | 98,062,762 | ||||||||
| EBITDA % | ( | ( | ||||||||||
| Adjusted EBITDA | 10,632,014 | 8,232,481 | 19,854,548 | 17,948,686 | ||||||||
| Revenue | 51,560,349 | 50,000,797 | 103,050,230 | 98,062,762 | ||||||||
| Adjusted EBITDA % | ||||||||||||
Segmented Adjusted EBITDA and Segmented Adjusted EBITDA %
| For the three months ended June 30, 2026 | |||||||||||||||
| Digital Services | Software and Apps | Creative Platform | Other | Total | |||||||||||
| Net income/(loss)1 | $ | 1,270,450 | $ | (59,576,730 | ) | $ | (25,809,376 | ) | $ | 1,095,451 | $ | (83,020,205 | ) | ||
| Income tax expense | 837,739 | 60,001 | 672,800 | (3,974,981 | ) | (2,404,441 | ) | ||||||||
| Depreciation and amortization | 482,367 | 9,047,758 | 970,839 | 317,948 | 10,818,912 | ||||||||||
| Interest expense | 828,851 | 867,139 | - | 1,587,605 | 3,283,595 | ||||||||||
| Share of earnings from equity investments | - | - | - | (532,486 | ) | (532,486 | ) | ||||||||
| Loss on disposal of subsidiary | 159,652 | - | - | - | 159,652 | ||||||||||
| Fair value adjustments to financial instruments | (132,954 | ) | - | - | 305,723 | 172,769 | |||||||||
| Fair value adjustments on investments | (1,855,142 | ) | - | - | (647,677 | ) | (2,502,819 | ) | |||||||
| Fair value adjustments to redemption liability | - | - | - | (853,891 | ) | (853,891 | ) | ||||||||
| Fair value adjustments to contingent consideration | - | - | - | (5,383,527 | ) | (5,383,527 | ) | ||||||||
| Business acquisition costs | - | 15,880 | - | 13,114 | 28,994 | ||||||||||
| Share-based compensation | - | 1,615 | (53,728 | ) | (123,708 | ) | (175,821 | ) | |||||||
| Impairment of assets2 | 1,605,494 | 54,348,003 | 26,376,865 | 1,878,238 | 84,208,600 | ||||||||||
| Foreign exchange | 914,072 | 1,220,261 | - | 610,957 | 2,745,290 | ||||||||||
| Other income | (16,992 | ) | (78,964 | ) | (311,380 | ) | (10,277 | ) | (417,613 | ) | |||||
| Severance expenses3 | 173,219 | 1,313,498 | 318,993 | 404,508 | 2,210,218 | ||||||||||
| Restructuring4 | - | 8,127 | - | 2,024,032 | 2,032,159 | ||||||||||
| Transactional-related costs5 | - | 120,000 | - | 88,844 | 208,844 | ||||||||||
| Other public company costs6 | - | - | - | 53,784 | 53,784 | ||||||||||
| Segmented Adjusted EBITDA7 | 4,266,756 | 7,346,588 | 2,165,013 | (3,146,343 | ) | 10,632,014 | |||||||||
| Revenue | 16,014,743 | 22,356,336 | 11,538,059 | 1,651,211 | 51,560,349 | ||||||||||
| Segmented Adjusted EBITDA % | ( | ||||||||||||||
| 1. Segmented Net income/(loss) and revenue are included in Note 19 to the Financial Statements. Unless otherwise set out below, the adjustments are as disclosed in the Financial Statements on an allocated basis between the segments. 2. Impairment of assets includes both impairment of non-financial and financial assets. For the three months ended June 30, 2026 the Company recognized 3. Severance expenses relate to costs incurred from employee terminations as a result of a workforce reduction and are included in Compensation on the Statements of Net (loss)/income. 4. Restructuring costs represent expenses related to organizational changes undertaken as the Company evolves as a public company, including leadership changes, workforce realignment, and other reorganization efforts. These costs are included in Professional fees on the Statements of Net (loss)/income and, in respect of executive transition costs, in Compensation on the Statements of Net (loss)/income. 5. Transactional-related costs relate to fees incurred for capital raising activities, credit facilities, and acquisition-related accounting. These costs are included in the Professional fees line on the Statements of Net (loss)/income.. 6. Other public company costs relate to the Company's graduation to the TSX, an internal controls project, and conversion of Tiny Fund entities to IFRS compliance and are included in Professional fees on the Statements of Net (loss)/income. 7. The Company did not have adjustments related to non-recurring project costs or software implementation costs for the three and six months ended June 30, 2026 and 2025. However, the Company may incur such costs in future periods. | |||||||||||||||
| For the three months ended June 30, 2025 | |||||||||||||||
| Digital Services | Software and Apps | Creative Platform | Other | Total | |||||||||||
| Net income/(loss)1 | $ | 5,740,567 | $ | (945,506 | ) | $ | (758,575 | ) | $ | 6,954,361 | $ | 10,990,847 | |||
| Income tax expense (recovery) | 864,814 | 190,579 | 47,158 | (2,769,381 | ) | (1,666,830 | ) | ||||||||
| Depreciation and amortization | 504,795 | 7,709,347 | 970,275 | 378,397 | 9,562,814 | ||||||||||
| Interest expense | 1,021,104 | 1,031,004 | (1,023 | ) | 975,780 | 3,026,865 | |||||||||
| Share of earnings from equity investments | - | - | - | (4,312,293 | ) | (4,312,293 | ) | ||||||||
| Loss on disposal of subsidiary | - | - | - | - | - | ||||||||||
| Fair value adjustments to financial instruments | - | - | - | - | - | ||||||||||
| Fair value adjustments on investments | 160,378 | (37,890 | ) | - | - | 122,488 | |||||||||
| Fair value adjustments to redemption liability | - | - | - | - | - | ||||||||||
| Fair value adjustments to contingent consideration | - | - | - | - | - | ||||||||||
| Business acquisition costs | - | 28,510 | - | 2,125,875 | 2,154,385 | ||||||||||
| Share-based compensation | 30,096 | (2,262 | ) | 46,860 | 661,758 | 736,452 | |||||||||
| Impairment of assets2 | - | - | - | - | - | ||||||||||
| Foreign exchange | (2,457,099 | ) | (3,031,833 | ) | 25,074 | 266,888 | (5,196,970 | ) | |||||||
| Other income | (60,720 | ) | (12,417 | ) | (27,676 | ) | (7,485,919 | ) | (7,586,732 | ) | |||||
| Severance expenses3 | 46,247 | 19,672 | (1,407 | ) | 137,115 | 201,627 | |||||||||
| Restructuring4 | - | - | - | 471 | 471 | ||||||||||
| Transactional-related costs5 | - | - | - | 348,006 | 348,006 | ||||||||||
| Other public company costs6 | - | (189,913 | ) | - | 41,264 | (148,649 | ) | ||||||||
| Segmented Adjusted EBITDA7 | 5,850,182 | 4,759,291 | 300,686 | (2,677,678 | ) | 8,232,481 | |||||||||
| Revenue | 19,643,741 | 18,009,448 | 10,250,325 | 2,097,283 | 50,000,797 | ||||||||||
| Segmented Adjusted EBITDA % | ( | ||||||||||||||
| 1. Segmented Net income/(loss) and revenue are included in Note 19 to the Financial Statements. Unless otherwise set out below, the adjustments are as disclosed in the Financial Statements on an allocated basis between the segments. 2. Impairment of assets includes both impairment of non-financial and financial assets. For the three months ended June 30, 2026 the Company recognized 3. Severance expenses relate to costs incurred from employee terminations as a result of a workforce reduction and are included in Compensation on the Statements of Net (loss)/income. 4. Restructuring costs represent expenses related to organizational changes undertaken as the Company evolves as a public company, including leadership changes, workforce realignment, and other reorganization efforts. These costs are included in Professional fees on the Statements of Net (loss)/income and, in respect of executive transition costs, in Compensation on the Statements of Net (loss)/income. 5. Transactional-related costs relate to fees incurred for capital raising activities, credit facilities, and acquisition-related accounting. These costs are included in the Professional fees line on the Statements of Net (loss)/income.. 6. Other public company costs relate to the Company's graduation to the TSX, an internal controls project, and conversion of Tiny Fund entities to IFRS compliance and are included in Professional fees on the Statements of Net (loss)/income. 7. The Company did not have adjustments related to non-recurring project costs or software implementation costs for the three and six months ended June 30, 2026 and 2025. However, the Company may incur such costs in future periods. | |||||||||||||||
| For the three months ended June 30, | ||||||||||||
| 2026 | 2026 | 2025 | 2025 | |||||||||
| Segmented Adjusted EBITDA | Segmented Adjusted EBITDA % | Segmented Adjusted EBITDA | Segmented Adjusted EBITDA % | |||||||||
| Digital Services | 4,266,756 | $ | 5,850,182 | |||||||||
| Software and Apps | 7,346,588 | 4,759,291 | ||||||||||
| Creative Platform | 2,165,013 | 300,686 | ||||||||||
| Other | (3,146,343 | ) | ( | (2,677,678 | ) | ( | ||||||
| 10,632,014 | 8,232,481 | |||||||||||
Recurring Revenue, Recurring Revenue % and Annualized Revenue
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Recurring revenues | $ | 17,394,204 | $ | 13,194,947 | $ | 35,006,824 | $ | 23,002,818 | ||||
| Non-recurring revenues | 34,166,145 | 36,805,850 | 68,043,406 | 75,059,944 | ||||||||
| Total revenue | 51,560,349 | 50,000,797 | 103,050,230 | 98,062,762 | ||||||||
| Recurring revenue % of total revenue | ||||||||||||
| Recurring revenue | 17,394,204 | 13,194,947 | 35,006,824 | 23,002,818 | ||||||||
| Annualized recurring revenue1 | 69,576,816 | 52,779,788 | 70,013,648 | 46,005,636 | ||||||||
| 1. Annualized recurring revenue is an estimated forecast of what the annualized revenue would be for the reporting fiscal year. Annualized recurring revenue was calculated by taking the for the three and six months ended June 30, 2026 recurring revenue and multiplying it by four and two quarters respectively. | ||||||||||||
Organic Revenue Growth
| For the three months ended June 30, | |||||||||||||||
| 2026 | 2025 | Acquisition and Disposition Adjustments1 | Adjusted 2025 | Organic Revenue Growth % | |||||||||||
| Digital Services | $ | 16,014,743 | $ | 19,643,741 | $ | (1,052,959 | ) | $ | 18,590,782 | ( | |||||
| Software and Apps | 22,356,336 | 18,009,448 | 5,414,264 | 23,423,712 | ( | ||||||||||
| Creative Platform | 11,538,059 | 10,250,325 | - | 10,250,325 | |||||||||||
| Other | 1,651,211 | 2,097,283 | (521,801 | ) | 1,575,482 | ||||||||||
| Total revenue2 | 51,560,349 | 50,000,797 | 3,839,504 | 53,840,301 | ( | ||||||||||
| 1. Refer to Note 4 in the annual financial statements ending December 31, 2025. The acquisition and disposition adjustments relates to the inclusion of the three months ended June 30, 2025 unaudited revenue from the Serato Acquisition and the exclusion of the three months ended June 30, 2025 revenue in connection with the disposition of We Work Remotely and Z1. 2. Refer to Note 19 in the Financial statements disclosing revenue by segment. | |||||||||||||||
Constant Currency
| For the three months ended June 30, | |||||||||||||||
| 2026 | 2025 | Reported variance %2 | Foreign exchange impact3 | Constant currency variance %4 | |||||||||||
| Digital Services | $ | 16,014,743 | $ | 19,643,741 | ( | ( | ( | ||||||||
| Software and Apps | 22,356,336 | 18,009,448 | -% | ||||||||||||
| Creative Platform | 11,538,059 | 10,250,325 | -% | ||||||||||||
| Other | 1,651,211 | 2,097,283 | ( | -% | ( | ||||||||||
| Total revenue1 | 51,560,349 | 50,000,797 | -% | ||||||||||||
| 1. Refer to Note 19 in the Financial statements disclosing revenue by segment. 2. Reported variance % represents the period-over-period percentage change based on reported revenues. 3. Foreign exchange impact represents the difference between current period reported revenue and current period revenue retranslated at Q2 2025 average exchange rates (USD/CAD 1.3841). The impact includes amounts attributable to businesses acquired during the period for which there is no comparative revenue. 4. Constant currency variance % refers to the period-over-period percentage change based on constant currency. | |||||||||||||||
Free Cash Flow and Free Cash Flow per Share
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Cash provided by operating activities | $ | 5,390,398 | $ | 6,167,181 | $ | 8,508,356 | $ | 10,124,471 | ||||
| Business acquisition costs | 28,994 | 2,154,385 | 49,977 | 3,616,601 | ||||||||
| Interest paid on debt | (3,652,697 | ) | (2,180,183 | ) | (5,313,714 | ) | (4,490,618 | ) | ||||
| Capital expenditures | (267,227 | ) | (127,887 | ) | (526,638 | ) | (221,799 | ) | ||||
| 1,499,468 | 6,013,496 | 2,717,981 | 9,028,655 | |||||||||
| Less: Amount attributable to non-controlling interests1 | (850,549 | ) | (1,192,730 | ) | (2,500,190 | ) | (960,849 | ) | ||||
| Free cash flow | 648,919 | 4,820,766 | 217,791 | 8,067,806 | ||||||||
| Weighted average number of shares outstanding2 | 29,289,523 | 26,640,222 | 29,319,201 | 25,045,519 | ||||||||
| Free cash flow per share | 0.02 | 0.18 | 0.01 | 0.32 | ||||||||
| 1. Amounts attributable to non-controlling interests reflect the other minority holder's ownership interest of 2. As a result of the Share Consolidation on October 1, 2025, all disclosures of Common Shares and per Common Share (or per share) have been retrospectively presented on a post-Share Consolidation basis. | ||||||||||||
1 Refer to Non-IFRS Measures for further information.
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