Tiny Reports Q3 2026 Results

Cost reductions helped lift adjusted profitability, but operating cash flow and free cash flow declined year over year.

Rhea-AI Summary

Tiny (TNYZF) reported Q3 2026 revenue of C$52.3 million, down 3% year over year, as profitability improved on an adjusted basis. Revenue fell 5% excluding currency effects, while organic revenue was broadly flat. Adjusted EBITDA, a non-IFRS earnings measure, rose 30% to C$13.2 million, with a 25% margin versus 19%. Net loss was C$2.5 million, compared with C$0.1 million in net income a year earlier.

Recurring revenue rose 2% to C$17.2 million. Free cash flow fell to C$8.6 million from C$13.7 million, while cash increased C$7.9 million during the quarter to C$39.5 million. Net debt was C$100.1 million. On October 1, Tiny acquired Oso Cloud for approximately C$1.9 million in cash, adding approximately C$5.3 million in annualized recurring revenue. Tiny expects continued revenue pressure at WeCommerce and Creative Platform to remain a headwind to consolidated growth.

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Positive

• Moderate pointAdjusted EBITDA rose 30% year over year to C$13.2 million; margin increased to 25% from 19%.
• Moderate pointQ3 operating earnings reached C$1,993,996, versus a C$2,618,802 operating loss a year earlier.
• Moderate pointRecurring revenue increased 2% to C$17.2 million, representing 33% of revenue versus 31% a year earlier.
• Moderate pointAnnualized recurring revenue increased 2% year over year to C$68.9 million.
• Moderate pointOso Cloud acquisition added approximately C$5.3 million in annualized recurring revenue, bringing pro forma revenue on that basis to approximately C$75.0 million.
• Moderate pointCash increased C$7.9 million during Q3 to C$39.5 million.
• Moderate pointNet debt to adjusted EBITDA improved to 2.3x from 2.8x at the end of Q2.
• Moderate pointNine-month revenue reached C$155,304,843, versus C$152,053,669 in 2025.
• Moderate pointNine-month adjusted EBITDA reached C$33,042,070, versus C$28,094,655; margin increased to 21% from 18%.
• Moderate pointNine-month recurring revenue reached C$52,226,735, versus C$39,878,297; revenue share increased to 34% from 26%.

11 minor points

• Minor pointAdjusted EBITDA increased 24% from Q2 2026.
• Minor pointNet debt declined to C$100.1 million from C$105.6 million at December 31, 2025.
• Minor pointTotal debt fell to C$139.6 million from C$142.0 million in Q2; Q3 repayments were C$2.5 million.
• Minor pointDigital Services adjusted EBITDA increased 34% year over year to C$7.2 million.
• Minor pointSoftware and Apps adjusted EBITDA increased 28% year over year to C$8.4 million.
• Minor pointMetalab revenue increased 25% from Q2, delivering its highest quarterly revenue since 2022.
• Minor pointSerato recurring revenue share reached 71%, versus 66% in Q3 2025.
• Minor pointPoolside investment implied value reached approximately C$15.8 million, versus approximately C$330,000 invested, based on reported NVIDIA financing terms.
• Minor pointTiny Fund investment carrying value increased 3% from December 31, 2025, to C$46.3 million.
• Minor pointQ3 revenue increased 1% from Q2 2026 to C$52.3 million.
• Minor pointNine-month operating loss narrowed to C$8,587,861 from C$8,746,802 in 2025.

Negative

• Major pointNine-month net loss reached C$95,722,250, versus C$7,101,462 net income in 2025.
• Moderate pointQ3 revenue declined 3% year over year to C$52.3 million, or 5% excluding currency effects.
• Moderate pointQ3 net loss was C$2.5 million, versus C$0.1 million net income a year earlier; Q2 loss was C$83.0 million.
• Moderate pointQ3 operating cash flow fell to C$12,403,646 from C$17,171,698 a year earlier.
• Moderate pointQ3 free cash flow fell to C$8,564,315 from C$13,745,709; per-share amounts fell to C$0.29 from C$0.47.
• Moderate point. Forward-looking: it has not happened yet and may not happen.WeCommerce and Creative Platform revenue pressure is expected by Tiny to remain a consolidated growth headwind.
• Moderate pointConvertible debentures carry 11% interest, with C$36.1 million face value due May 12, 2030.
• Moderate pointTotal assets declined to C$369.4 million from C$465.0 million at December 31, primarily reflecting Q2 impairments.
• Moderate pointNine-month EBITDA was negative C$54,711,461, versus positive C$42,869,438; margin was negative 35% versus positive 28%.
• Moderate pointNine-month operating cash flow declined to C$20,912,002 from C$27,296,169 in 2025.
• Moderate pointNine-month free cash flow declined to C$8,782,106 from C$21,813,516; per-share amounts fell to C$0.30 from C$0.82.

9 minor points

• Minor pointOrganic revenue decreased 0.2% compared with Q3 2025.
• Minor pointBasic and diluted Q3 loss per share was C$0.10, versus earnings of C$0.00 a year earlier.
• Minor pointQ3 EBITDA fell to C$12,742,266 from C$13,486,276; margin declined to 24% from 25%.
• Minor pointCreative Platform adjusted EBITDA declined 41% year over year to C$0.3 million.
• Minor pointOther segment adjusted EBITDA declined 17%, or C$0.4 million, following lower revenue after the We Work Remotely divestiture.
• Minor pointOso Cloud cash consideration was approximately C$1.9 million for the acquisition completed October 1, 2026.
• Minor pointTotal debt increased to C$139.6 million from C$134.8 million at December 31, 2025.
• Minor pointTotal liabilities increased to C$240,540,745 from C$239,009,430 at December 31, 2025.
• Minor pointNine-month basic and diluted loss per share was C$3.10, versus earnings of C$0.26 and C$0.25, respectively.

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• Total revenue of $52.3 million, a decrease of 3% year-over-year or 5% on a constant currency^[1] basis, with organic revenue¹ remaining flat

• Recurring revenue¹ of $17.2 million, a 2% increase year-over-year, representing 33% of total revenue

• Annualized recurring revenue¹ ("ARR") of $68.9 million, a 2% increase year-over-year

• Adjusted EBITDA¹ of $13.2 million, a 30% increase year-over-year, representing a 25% margin¹

• Acquired Oso Cloud after quarter-end, adding $5.3 million in ARR¹ and bringing Tiny's pro forma ARR¹ to $75.0 million.

Victoria, British Columbia--(Newsfile Corp. - November 5, 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 nine months ended September 30, 2026 ("Q3 2026") today. Currency amounts are expressed in Canadian dollars unless otherwise noted.

Portfolio Company Highlights

• Metalab delivered its strongest revenue quarter since 2022, with revenue up 25% from Q2. Engagements with marquee clients including Alo, Intuit, Questrade, ServiceNow, Yahoo and Tommy John supported the quarter.

• Serato launched DJ for iOS in October, bringing its DJ software to iPhone and iPad with support for more than 120 controllers and mixers. The mobile format expands Serato's addressable market, creating a new entry point for DJs and giving existing users greater flexibility in how and where they perform.

• Letterboxd surpassed 33 million members at quarter-end, an increase of 42% year-over-year and more than tripling since its acquisition by Tiny Fund I in 2023. This growth reinforces Letterboxd's position as a leading social network for film discovery and discussion.

• Completed the acquisition of Oso Cloud for ~$1.9 million in cash consideration on October 1, 2026, expanding Tiny's enterprise software presence with approximately $5.3 million in ARR. The acquisition brings Tiny's pro forma ARR¹ to approximately $75.0 million.

• Tiny's ~$330k seed investment in Poolside now has an implied value of ~$15.8 million based on reported NVIDIA financing terms.

• WeCommerce and Creative Platform continue to face revenue pressure, weighing on consolidated revenue growth. Both businesses remain focused on profitability while navigating a challenging environment.

Q3 2026 Operational & Financial Overview

• Total revenue was $52.3 million, down 3% year-over-year or 5% on a constant currency basis¹. The reported decline largely reflected the disposals of WeWorkRemotely and Z1. Adjusting for those disposals, organic revenue¹ was broadly flat, as growth in Digital Services and Serato largely offset continued revenue pressure at WeCommerce and Creative Platform.

• Recurring revenue¹ increased 2% to $17.2 million and now represents 33% of total revenue, up from 31% a year ago, reflecting Tiny's continued shift toward higher-quality, recurring revenue. ARR¹ was $69.6 million. Including the Oso Cloud acquisition completed after quarter-end, illustrative pro forma ARR¹ was approximately $75.0 million, an increase of approximately 8%.

• Adjusted EBITDA¹ increased 24% to $13.2 million from Q2 2026, representing a 25% margin and reflecting improved profitability despite revenue pressure in parts of the group.

• Net debt to Adjusted EBITDA¹ improved to 2.3x from 2.8x at the end of Q2. Tiny repaid $2.5 million of debt during the quarter.

• Net loss narrowed to $2.5 million, from $83.0 million in Q2 2026. Q2 included $80.7 million of non-cash impairments at WeCommerce and Creative Market, along with portfolio review, restructuring, and executive transition costs.

Management Commentary

"Our work to make Tiny's businesses more focused and efficient is showing up in profitability. Adjusted EBITDA¹ increased 30% year-over-year, with a 25% margin on slightly lower revenue. We generated $8.6 million of free cash flow¹ and ended the quarter with $39.5 million of cash. Net debt to Adjusted EBITDA¹ improved to 2.3x from 2.8x at the end of Q2.

Within the group, Metalab delivered its strongest revenue quarter since 2022, while Serato continued to grow its subscription business and expanded into mobile with the October launch of Serato DJ for iOS. WeCommerce and Creative Platform continue to face revenue pressure, which we expect to remain a headwind to consolidated growth. Both businesses remain focused on profitability while navigating a challenging environment.

We are encouraged by our early progress and recognize there is still significant work ahead as we build a more resilient Tiny. AI and changing competitive conditions require us to adapt our businesses and carefully assess new acquisitions. The Oso Cloud acquisition meets that bar, expanding our presence in enterprise security software and adding recurring revenue at an attractive valuation.

We remain focused on improving operations, strengthening our balance sheet and maintaining a disciplined approach to acquisitions and selective asset monetizations," said Austin Singhera, CEO of Tiny.

	For the three months ended September 30,			For the nine months ended September 30,
	2026	2025		2026	2025
Revenue	52,254,613	53,990,907		155,304,843	152,053,669
Earnings/(loss) from operations	1,993,996	(2,618,802)		(8,587,861)	(8,746,802)
Net (loss)/income for the period	(2,518,582)	116,013		(95,722,250)	7,101,462
EBITDA (negative)1	12,742,266	13,486,276		(54,711,461)	42,869,438
EBITDA %1	24%	25%		(35%)	28%
Adjusted EBITDA1	13,187,522	10,145,970		33,042,070	28,094,655
Adjusted EBITDA %1	25 %	19 %		21 %	18 %
Recurring revenue1	17,219,911	16,875,479		52,226,735	39,878,297
Recurring revenue %1	33 %	31 %		34 %	26 %
Cash provided by operating activities	12,403,646	17,171,698		20,912,002	27,296,169
Free cash flow1	8,564,315	13,745,709		8,782,106	21,813,516
Basic (loss)/earnings per share2	(0.10)	0.00		(3.10)	0.26
Diluted (loss)/earnings per share2	(0.10)	0.00		(3.10)	0.25
Free cash flow per share1, 2	0.29	0.47		0.30	0.82

 

	September 30, 2026	December 31, 2025
Total assets	369,390,132	464,980,329
Investment in Tiny Fund I LP	46,269,772	44,726,952
Total liabilities	240,540,745	239,009,430
Non-current financial liabilities	161,816,271	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 Share") 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 Q3 2026 was $52.3 million, a decrease of $1.7 million or 3% (5% on a constant currency^[2] basis) compared to Q3 2025. Constant currency represents revenue growth excluding the impact of foreign exchange.

• Consolidated revenues increased $0.7 million or 1% when compared to $51.6 million in Q2 2026. Quarter to quarter growth was largely due to performance at Metalab, within Digital Services, and Serato, within Software and Apps.

• Net loss in Q3 2026 was $2.5 million compared to net income of $0.1 million in Q3 2025, a change of $2.6 million. The Company recognized a $9.0 million gain on disposal of We Work Remotely in Q3 2025, which impacted the quarterly comparison. The one-time gain was partially offset in Q3 2026 by a $4.6 million increase in earnings from operations, reflecting the impact of cost rationalization initiatives across the portfolio since May 2026.

• Organic revenue¹ decreased slightly by 0.2% compared to Q3 2025. Revenues increased at Digital Services due to new client engagements and at Serato through continued strong subscription revenue.

• Recurring revenue¹ in Q3 2026 was $17.2 million, an increase of $0.3 million or 2% compared to Q3 2025 due to subscription revenue growth at Serato, which has grown to a 71% recurring revenue base from 66% recurring revenue in Q3 2025.

• Recurring revenue %¹ increased to 33% of total revenue, compared to 31% in Q3 2025.

• EBITDA¹ was $12.7 million in Q3 2026 versus $13.5 million in Q3 2025, which included a $9.0 million gain on the sale of We Work Remotely. Excluding the effect of that gain, the improvement in earnings from operations excluding depreciation and amortization of $4.0 million and a $2.6 million change in foreign exchange drove EBITDA higher.

• Adjusted EBITDA¹ increased by 30% to $13.2 million in Q3 2026, compared to $10.1 million in Q3 2025. The growth was primarily driven by cost reductions and operational efficiencies implemented across the portfolio, particularly at WeCommerce, and higher earnings in Digital Services and Serato.

• Adjusted EBITDA¹ margin for the quarter was 25%, compared to 19% in Q3 2025.

• Segmented Adjusted EBITDA¹ by segment in Q3 2026 compared to Q3 2025:

• Digital Services was $7.2 million, an increase of $1.8 million or 34% due to new client engagements and cost reduction measures;

• Creative Platform was $0.3 million, a decrease of $0.2 million or 41%, as revenue continues to decline due to reduced traffic and AI-related disruptions providing an alternative to its services and products, partially offset by cost reductions;

• Software and Apps was $8.4 million, an increase of $1.8 million or 28%, primarily due to Serato's growth and WeCommerce's realignment of costs; and

• Other, which decreased by $0.4 million or 17% as a result of lower revenues after the divestiture of We Work Remotely.

• Total cash increased $7.9 million during the quarter to $39.5 million. Cash flow from operations in Q3 2026 was $12.4 million, down $4.8 million from $17.2 million in Q3 2025, which included $8.2 million of cash received for a licensing agreement in Q3 2025.

• Free Cash Flow¹ in Q3 2026 was $8.6 million ($0.29 per share) compared to $13.7 million in Q3 2025 ($0.47 per share).

• Total debt outstanding, excluding the Company's 11% secured convertible debentures due on May 12, 2030 (the "Convertible Debentures"), as of September 30, 2026 was $103.5 million compared to $98.7 million on December 31, 2025. As of September 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, decreased to $139.6 million as at September 30, 2026, from $142.0 million as at June 30, 2026. During the three months ended September 30, 2026, the Company repaid $2.5 million of debt. Compared to the balance of $134.8 million as at December 31, 2025, total debt increased due to $1.2 million of net drawings and $3.4 million of foreign exchange movements.

• Net debt, including the face value of Convertible Debentures, was $100.1 million at September 30, 2026 (December 31, 2025: $105.6 million), or 2.3x LTM Adjusted EBITDA¹ compared to 2.8x at year end 2025.

• Total assets on September 30, 2026 were $369.4 million compared to $465.0 million on December 31, 2025, a decrease of $95.6 million, primarily attributable to the impairment of non-financial assets in Q2 2026.

Tiny Fund Performance

• Tiny Fund I LP generated combined unaudited revenue of $19.2 million (USD$13.7 million) in Q3 2026 compared to $18.1 million (USD$13.2 million) in Q3 2025, representing growth of 6%.

• The increase was due to a strong quarter for AeroPress driven by Amazon Prime Days and supported by continued revenue growth at Letterboxd.

• The carrying amount of Tiny's investment in Tiny Fund was $46.3 million (USD$32.6 million) on September 30, 2026, an increase of $1.5 million or 3% from December 31, 2025.

• The Company received distributions of $0.5 million in Q3 2026, consistent with distributions in Q2 2026.

• Tiny holds a 21.41% interest in Tiny Fund I LP and Tiny's consolidated financial results do not include the aggregate revenues, expenses, or profits of Tiny Fund's individual investments.

Quarterly Conference Call and Business Update

The Company will hold a conference call to provide a business update on Thursday, November 5, 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, November 5, 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:	481793108

 

This live call is also being webcast and can be accessed by going to: https://events.q4inc.com/attendee/481793108.

Financial Statements

Tiny Ltd.'s Interim Consolidated Financial Statements and Management's Discussion and Analysis for Q3 2026 are available on SEDAR+ at www.sedarplus.com.

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.com.

Company Contact:
Mike McKenna
Chief Financial Officer
Phone: 416-938-0574
Email: mike@tiny.com

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 ability to integrate acquisitions, the Company's use and implementation of AI strategies, ARR, 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 Company's working capital deficiency; 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; the Company's ability to fund contingent consideration and scheduled debt repayment obligations as they come due; 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; foreign exchange rate fluctuations; impairment of goodwill, intangible assets and other assets; 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, including the material weaknesses identified in the Company's internal control over financial reporting and the Company's ability to remediate them; competition within ecommerce markets; confidential information; reliance on the Shopify platform; reliance on management and key employees and consultants; 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.com under the Company's profile.

Forward-looking statements and information, including future-oriented financial information or financial outlook, are based on assumptions and involve 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.

This press release contains information pertaining to Tiny's seed investment in Poolside, which has been obtained from and based upon third-party sources. Third-party sources may state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance or guarantee as to the accuracy or completeness of included data. Although the data is believed to be reliable, neither the Company nor its agents have independently verified the accuracy, currency, reliability or completeness of any of the information from third-party sources referred to in this press release or ascertained the underlying economic assumptions relied upon by such sources. The Company disclaims any responsibility or liability whatsoever in respect of any information derived from third-party sources.

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 %", "net debt", "Net debt to Adjusted EBITDA", "recurring revenue", "recurring revenue %", "annualized recurring revenue" or "ARR", "pro forma ARR", "organic revenue", "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's discussion and analysis for the three and nine months ended September 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.com.

NON-IFRS MEASURES RECONCILIATIONS

EBITDA and Adjusted EBITDA

		For the three months ended September 30,						For the nine months ended September 30,
		2026			2025			2026			2025
Net (loss)/income for the period	$	(2,518,582	)	$	116,013		$	(95,722,250	)	$	7,101,462
Income tax recovery/(expense)		1,708,641			(963,062	)		(879,433	)		(2,089,700	)
Depreciation and amortization		10,174,944			10,772,675			32,060,718			29,021,190
Interest expense		3,377,263			3,560,650			9,829,504			8,836,486
EBITDA (negative)		12,742,266			13,486,276			(54,711,461	)		42,869,438
EBITDA Adjustments
Share of earnings from equity investments		(514,449	)		(231,779	)		(2,108,229	)		(5,023,848	)
Loss/(gain) on sale of subsidiary		-			(8,979,618	)		159,652			(8,979,618	)
Fair value adjustment on investments		677,857			-			(1,147,395	)		-
Fair value adjustment to financial instruments		(819,162	)		16,174			142,268			541,287
Fair value adjustment to contingent consideration		858,085			772,700			(2,378,003	)		487,174
Fair value adjustment to redemption liability		(30,143	)		443,834			(615,194	)		443,834
Business acquisition costs		31,394			124,473			81,371			3,741,074
Share-based compensation		605,021			567,264			689,721			2,015,094
Impairment of assets1		-			-			84,208,600			-
Foreign exchange		95,855			2,741,459			4,834,365			(2,217,420	)
Other income		(841,369	)		(95,173	)		(1,428,014	)		(7,846,459	)
Severance expenses2		216,009			1,080,727			2,772,364			1,357,607
Restructuring3		2,352			4,815			2,034,511			28,213
Transactional-related costs4		107,698			116,755			370,042			488,006
Other public company costs5		56,108			98,063			137,472			190,273
Adjusted EBITDA6		13,187,522			10,145,970			33,042,070			28,094,655
1. Impairment of assets includes both impairment of non-financial and financial assets. For the three and nine months ended September 30, 2026, the Company recognized $80.7 million of impairment of non-financial assets and $3.5 million of impairment of financial assets. The amounts are discussed in Note 8 and 18 of the Financial Statements, respectively. Comprising part of the impairment of assets adjustment is $1.6 million of bad debts expense from a single customer with whom the Company no longer has an ongoing relationship. 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 Q3 2026 and Q3 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 and an internal controls project, 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 nine months ended September 30, 2026 and 2025. However, the Company may incur such costs in future periods.

 

EBITDA % and Adjusted EBITDA %

		For the three months ended September 30,						For the nine months ended September 30,
		2026			2025			2026			2025
EBITDA (negative)	$	12,742,266		$	13,486,276		$	(54,711,461	)	$	42,869,438
Revenue		52,254,613			53,990,907			155,304,843			152,053,669
EBITDA %		24%			25%			(35%)			28%
Adjusted EBITDA		13,187,522			10,145,970			33,042,070			28,094,655
Revenue		52,254,613			53,990,907			155,304,843			152,053,669
Adjusted EBITDA %		25%			19%			21%			18%

 

Segmented Adjusted EBITDA and Segmented Adjusted EBITDA %

		For the three months ended September 30, 2026
		Digital Services			Creative Platform			Software and Apps			Other			Total
Net income/(loss)1	$	4,095,833		$	(22,081	)	$	(1,963,631	)	$	(4,628,703	)	$	(2,518,582	)
Income tax recovery/(expense)		2,142,621			15,133			199,632			(648,745	)		1,708,641
Depreciation and amortization		486,178			287,194			9,078,377			323,195			10,174,944
Interest expense		840,157			(910	)		924,173			1,613,843			3,377,263
Share of earnings from equity investments		-			-			-			(514,449	)		(514,449	)
Fair value adjustments on investments		780,064			-			-			(102,207	)		677,857
Fair value adjustments to financial instruments		(82,893	)		-			-			(736,269	)		(819,162	)
Fair value adjustments to contingent consideration		-			-			-			858,085			858,085
Fair value adjustments to redemption liability		-			-			-			(30,143	)		(30,143	)
Business acquisition costs		-			-			1,788			29,606			31,394
Share-based compensation		-			1,874			(294	)		603,441			605,021
Foreign exchange		(286,831	)		-			(17,396	)		400,082			95,855
Other income		(746,837	)		(11,335	)		(45,556	)		(37,641	)		(841,369	)
Severance expenses2		6,378			31,748			67,420			110,463			216,009
Restructuring3		-			-			-			2,352			2,352
Transactional-related costs4		-			-			140,387			(32,689	)		107,698
Other public company costs5		-			-			9,350			46,758			56,108
Segmented Adjusted EBITDA6		7,234,670			301,623			8,394,250			(2,743,021	)		13,187,522
Revenue		19,603,395			8,914,782			22,105,584			1,630,852			52,254,613
Segmented Adjusted EBITDA %		37%			3%			38%			(168%)			25%
1. Segmented Net income/(loss) and revenue are included in Note 21 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. 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. 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 and an internal controls project, 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, software implementation costs, or impairment of assets for the three months ended September 30, 2026 and 2025 . However, the Company may incur such costs in future periods.

 

		For the three months ended September 30, 2025
		Digital Services			Creative Platform			Software and Apps			Other			Total
Net income/(loss)1	$	2,602,244		$	(623,549	)	$	(6,411,978	)	$	4,549,296		$	116,013
Income tax recovery/(expense)		533,459			18,503			204,436			(1,719,460	)		(963,062	)
Depreciation and amortization		499,763			965,568			8,945,652			361,692			10,772,675
Interest expense		952,702			(331	)		1,038,131			1,570,148			3,560,650
Share of earnings from equity investments		-			-			-			(231,779	)		(231,779	)
Gain on disposal of subsidiary		-			-			-			(8,979,618	)		(8,979,618	)
Fair value adjustments to financial instruments		(45,444	)		-			(4,494	)		66,112			16,174
Fair value adjustments to contingent consideration		-			-			-			772,700			772,700
Fair value adjustments to redemption liability		-			-			-			443,834			443,834
Business acquisition costs		-			-			25,705			98,768			124,473
Share-based compensation		21,123			38,002			1,728			506,411			567,264
Foreign exchange		832,604			34,394			1,903,528			(29,067	)		2,741,459
Other income		(40,018	)		74,761			(59,612	)		(70,304	)		(95,173	)
Severance expenses2		55,162			29			910,536			115,000			1,080,727
Restructuring3		-			-			4,815			-			4,815
Transactional-related costs4		-			-			7,446			109,309			116,755
Other public company costs5		-			-			10,000			88,063			98,063
Segmented Adjusted EBITDA6		5,411,595			507,377			6,575,893			(2,348,895	)		10,145,970
Revenue		18,576,813			10,015,307			23,232,167			2,166,620			53,990,907
Segmented Adjusted EBITDA %		29%			5%			28%			(108%)			19%
1. Segmented Net income/(loss) and revenue are included in Note 21 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. 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. 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 and an internal controls project, 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, software implementation costs, or impairment of assets for the three months ended September 30, 2026 and 2025.However, the Company may incur such costs in future periods.

 

		For the three months ended September 30,
		2026			2026			2025			2025
		Segmented  Adjusted  EBITDA			Segmented Adjusted  EBITDA %			Segmented Adjusted  EBITDA			Segmented Adjusted  EBITDA %
Digital Services		7,234,670			37 %		$	5,411,595			29 %
Creative Platform		301,623			3 %			507,377			5 %
Software and Apps		8,394,250			38 %			6,575,893			28 %
Other		(2,743,021	)		(168) %			(2,348,895	)		(108) %
		13,187,522			25 %			10,145,970			19 %

 

Recurring Revenue, Recurring Revenue %, Annualized Revenue and Pro forma ARR

		For the three months ended September 30,						For the nine months ended September 30,
		2026			2025			2026			2025
Recurring revenues	$	17,219,911		$	16,875,479		$	52,226,735		$	39,878,297
Non-recurring revenues		35,034,702			37,115,428			103,078,108			112,175,372
Total revenue		52,254,613			53,990,907			155,304,843			152,053,669
Recurring revenue % of total revenue		33%			31%			34%			26%
Recurring revenue		17,219,911			16,875,479			52,226,735			39,878,297
Annualized recurring revenue1		68,879,644			67,501,916			69,635,647			53,171,063
Add: Unaudited Oso Cloud annualized recurring revenue2,3		-			-			5,350,027			-
Pro forma ARR2,3		-			-			74,985,674			53,171,063
1. Annualized recurring revenue ("ARR") is an estimated forecast of what the annualized revenue would be for the reporting fiscal year. Annualized recurring revenue was calculated by taking recurring revenue for the three and nine months ended September 30, 2026 and 2025 and multiplying it by four and four-thirds, respectively. 2. Oso Cloud's closing ARR is based on unaudited financial information provided by the vendor. Past performance is not indicative of future results and actual results may differ materially. A spot rate of 1.42 was applied to the USD annualized recurring revenue of Oso Cloud. 3. Oso Cloud's closing ARR is measured with different calculation bases and measurement dates than the Company's ARR. The pro forma combined number is presented solely to illustrate the approximate estimated scale of the combined recurring revenue base. It is not actual consolidated ARR at closing or a forecast of future revenue. Past performance is not indicative of future results and actual results may differ materially.

 

Organic Revenue

		For the three months ended September 30,
		2026			Acquisition and Disposition Adjustments1			Adjusted 2026			2025			Acquisition and Disposition Adjustments1			Adjusted 2025			Organic Revenue  %
Digital Services	$	19,603,395		$	-		$	19,603,395		$	18,576,813		$	(1,116,700	)	$	17,460,113			12%
Software and Apps		22,105,584			-			22,105,584			23,232,167			-			23,232,167			(5%)
Creative Platform		8,914,782			-			8,914,782			10,015,307			-			10,015,307			(11%)
Other		1,630,852			-			1,630,852			2,166,620			(525,779	)		1,640,841			(1%)
Consolidated revenue2		52,254,613			-			52,254,613			53,990,907			(1,642,479	)		52,348,428			-%
1. Refer to Note 4 in the annual financial statements ending December 31, 2025. The acquisition and disposition adjustments relates to the exclusion of the three months ended September 30, 2025 revenue in connection with the disposition of We Work Remotely and Z1. 2. Refer to Note 21 in the Financial statements disclosing revenue by segment.

 

Constant Currency

		For the three months ended September 30,
		2026			2025			Reported variance %2			Foreign exchange impact3			Constant currency variance %4
Digital Services	$	19,603,395		$	18,576,813			6%			(2%)			4%
Software and Apps		22,105,584			23,232,167			(5%)			(1%)			(6%)
Creative Platform		8,914,782			10,015,307			(11%)			(2%)			(13%)
Other		1,630,852			2,166,620			(25%)			-%			(25%)
Total revenue1		52,254,613			53,990,907			(3%)			(2%)			(5%)
1. Refer to Note 21 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 Q3 2025 average exchange rates (USD/CAD 1.3773). 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 September 30,						For the nine months ended September 30,
		2026			2025			2026			2025
Cash provided by operating activities	$	12,403,646		$	17,171,698		$	20,912,002		$	27,296,169
Business acquisition costs		31,394			124,473			81,371			3,741,074
Interest paid on debt		(1,750,803	)		(2,088,596	)		(7,064,517	)		(6,579,214	)
Capital expenditures		(1,117,344	)		(143,749	)		(1,643,982	)		(365,546	)
		9,566,893			15,063,826			12,284,874			24,092,483
Less: Amount attributable to non-controlling interests1		(1,002,578	)		(1,318,117	)		(3,502,768	)		(2,278,967	)
Free cash flow		8,564,315			13,745,709			8,782,106			21,813,516
Weighted average number of shares outstanding2		29,300,669			29,327,957			29,315,348			26,496,807
Free cash flow per share		0.29			0.47			0.30			0.82
1. Amounts attributable to non-controlling interests reflect the other minority holder's ownership interest of 34.00% (Serato) and 25.51% (Dribbble) applied to Free Cash Flow. Free Cash Flow is net cash flows from operating activities, adjusted to add back business acquisition costs, and then reduced by interest paid on debt facilities, capital expenditures, and amounts attributable to non-controlling interests. 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.

 

Net Debt and Net Debt to Adjusted EBITDA

		As at September 30, 2026			As at June 30, 2026			As at December 31, 2025
Current portion of debt	$	11,296,014		$	9,640,614		$	8,650,082
Debt	$	92,169,958		$	96,287,558		$	90,064,307
Convertible debentures1	$	36,100,000		$	36,100,000		$	36,100,000
Total Debt with Convertible debentures	$	139,565,972		$	142,028,172		$	134,814,389
Less: Cash and cash equivalents	$	(39,486,518	)	$	(31,566,316	)	$	(29,252,260	)
Net Debt		100,079,454			110,461,856			105,562,129
LTM Adjusted EBITDA2		42,876,109			39,834,557			37,928,695
Net Debt:Adjusted EBITDA		2.3 x			2.8 x			2.8 x
1. Refers to Convertible debentures face value, see Note 13 in the Financial Statements. 2. LTM Adjusted EBITDA refers to last twelve months Adjusted EBITDA. Refer to Summary of Quarterly Results in the MD&A.

 

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^[1] Refer to Non-IFRS Measures for further information.
^[2] Refer to Non-IFRS Measures for further information.

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FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did Tiny perform in Q3 2026?

Tiny reported C$52.3 million in revenue, down 3% year over year, and a C$2.5 million net loss. Adjusted EBITDA increased 30% to C$13.2 million, with a 25% margin compared with 19% a year earlier.

How much did Tiny pay for Oso Cloud?

Tiny acquired Oso Cloud on October 1, 2026, for approximately C$1.9 million in cash. The acquisition added approximately C$5.3 million in annualized recurring revenue, bringing Tiny's pro forma annualized recurring revenue to approximately C$75.0 million.

Why did Tiny's Q3 2026 net income and operating cash flow decline year over year?

The prior-year comparisons included a C$9.0 million disposal gain in net income and C$8.2 million received under a licensing agreement in operating cash flow. The disposal gain related to We Work Remotely; Q3 2026 operating earnings improved by C$4.6 million, partially offsetting its absence.

Are Tiny Fund I portfolio results consolidated into Tiny's earnings?

Tiny's consolidated results do not include the aggregate revenues, expenses or profits of Tiny Fund I's individual investments. Tiny holds a 21.41% interest in the fund and received C$0.5 million in distributions in Q3 2026, consistent with Q2.

What is weighing on Tiny's Creative Platform business?

Creative Platform faces reduced traffic and AI-related disruption offering alternatives to its services and products. Revenue continued to decline, while cost reductions partially offset the pressure on profitability.