Yangaroo Announces Third Quarter 2025 Financial Results

Rhea-AI Summary

Yangaroo (OTC: YOOIF) reported third-quarter 2025 results for the period ended September 30, 2025, including its 13th consecutive quarter of positive Normalized EBITDA. Q3 revenue was $1,572,017, down 19% YoY from $1,942,525, driven by Advertising (-21%) and Entertainment (-15%). Q3 Normalized EBITDA fell to $152,906 (down 67% YoY) and operating loss was $95,609. Cash was $160,165 and working capital deficiency widened. The company recorded a $150,000 settlement during the quarter and expects a subsequent $550,000 legal settlement receipt post-period. Management cited tariff-related cost pressures and softer advertising and music volumes.

Positive

• Thirteenth consecutive quarter of positive Normalized EBITDA
• Post-period legal settlement receipt of $550,000 anticipated
• Maintained service levels and added new clients in Q3

Negative

• Revenue down 19% YoY to $1.57M in Q3 2025
• Normalized EBITDA decreased 67% YoY to $152,906
• Working capital deficiency increased (widened versus prior periods)

Reports Thirteen Consecutive Quarter of Positive Normalized EBITDA

Toronto, Ontario--(Newsfile Corp. - November 28, 2025) - YANGAROO Inc. (TSXV: YOO) ("Yangaroo", "Company"), a software leader in media asset workflow and distribution solutions, today announced its financial results for the third quarter ended September 30, 2025. The third quarter financial statements and corresponding management's discussion and analysis (the "Third Quarter Filings") are available at www.yangaroo.com and on the Company's profile at www.sedarplus.ca. Please note that all currency in this press release is denominated in United States dollars, unless otherwise noted.

Yangaroo is pleased to report its thirteenth consecutive quarter of positive Normalized EBITDA in the third quarter ended September 30, 2025. Management believes this reflects the Company's strong focus on strategic execution and disciplined cost management, despite the challenging environment imposed by ongoing geopolitical conditions.

However, despite the Company's continued focus and strategic efforts, total revenue for the quarter declined by $370,508, or approximately 19%, year over year. The Company believes the decline is in part related to the increased tariff-related costs. This cautious spending environment has directly impacted overall performance.

Despite these headwinds, the Company's continued emphasis on operational efficiency and cost control led to a smaller than expected negative impact on operating income.

For the three months ended September 30, 2025, the Company recorded an operating loss of $95,609 and Normalized EBITDA of $152,906, compared to operating income of $348,983 and Normalized EBITDA of $466,458 in Q3 2024.

For the nine months ended September 30, 2025, the Company reported an operating loss of $89,860 and Normalized EBITDA of $638,066, versus operating income of $477,056 and Normalized EBITDA of $1,041,857 in the same period of 2024.

Grant Schuetrumpf, CEO of Yangaroo, commented, "Although we are pleased to report our thirteenth consecutive quarter of positive Normalized EBITDA, reflecting the strength of our operations and commitment to exceptional client service, we remain cautious of the macroeconomic market conditions we currently operate within.

In Advertising , volumes softened as brands and agencies reduced discretionary marketing spend amid tariff-related cost pressures and the current economic uncertainty, though the Company maintained strong service levels, added new clients, and expanded its U.S. and Canadian clearance service capabilities.

In Music our radio promotions continue to remain steady, while music-video delivery volumes have declined primarily due to reduced music-video programming with a major TV broadcaster.

In the Awards Show division, revenue reflected the timing of events only. The Company continued to support major U.S. and Canadian Awards Shows and invest in platform improvements designed to improve configurability, shorten onboarding timelines, and expand future opportunities.

Our third quarter results reflect revenues that were modestly lower than our expectations, even as industry wide challenges persisted. While the dynamics in the advertising and music sectors, in part, continue to create near-term headwinds, our disciplined approach and resilient business model position us well to navigate these challenges. We remain focused on executing our growth strategy, expanding our customer base, and investing in our platforms to capture both organic and non-organic opportunities across all divisions."

Q3'2025 Financial Highlights

• Revenue in Q3' 2025 was $1,572,017 compared to $1,942,525 and $1,651,441 in the third quarter of 2024 and the second quarter of 2025, respectively.

  • Revenue decreased by $370,508, or 19%, versus Q3'2024. This was the result of a decrease in Advertising revenue of $276,245, or 21%, and a decrease in Entertainment revenue of $94,263, or 15%.

  • Revenue decreased by $79,424 or 5%, versus Q2'2025. The decrease in revenue was primarily attributed to lower Advertising and Music revenue of $116,942, or 10%, and $27,776, or 11%, offset by higher Awards revenue with an increase of $65,294, or 29%, respectively. The decrease in Advertising revenue can be strongly attributed to the current geopolitical situation, while the decrease in Music revenue was related to lower volumes amongst Music customers. The increase in Awards revenue was due to seasonality, with the third quarter typically representing the strongest period for Awards shows.

  • Operating expenses in Q3' 2025 were $1,667,626 compared to $1,593,542 and $1,670,218 in the third quarter of 2024 and the second quarter of 2025, respectively.

  • Operating expenses increased by $74,084, or 5%, versus Q3'2024. The increase was primarily driven by higher depreciation expenses, along with modest increases in general and administrative and marketing expenses due to higher legal fees and travel costs during the quarter. These increases were partially offset by reductions in headcount, as well as lower technology and production expenses.

  • Operating expenses decreased by $2,593, or 1%, versus Q2'2025. The decrease in operating expenses was primarily attributed to the Company's cost control initiatives, which resulted in lower salaries, lower technology expenses, and lower general and marketing expenses.

• Normalized EBITDA in Q3' 2025 was $152,906 compared to Normalized EBITDA of $466,458 in Q3'2024 and Normalized EBITDA of $220,909 in Q2'2025.

  • Normalized EBITDA decreased by $313,552, or 67%, compared to Q3'2024. The decrease was primarily attributed to the overall decrease in revenue.

  • Normalized EBITDA decreased by $68,003, or 31%, compared to Q2'2025. This decrease was also primarily attributed to the overall decrease in revenue.

Financial Highlights

		Q3 2025				Q2 2025				Q1 2025				Q4 2024
Cash	$	160,165			$	271,234			$	217,088			$	231,083
Working Capital (Deficiency)		(2,033,182		)		(2,140,887		)		(1,900,378		)		(1,841,495		)
Liquidity		645,044				656,059				686,618				717,583
Revenue		1,572,017				1,651,441				1,782,058				2,241,659
Operating Expenses		1,667,626				1,670,218				1,757,532				1,950,876
Other Expenses (Income)		(166,455		)		255,720				152,424				(92,192		)
Income Tax Expense (Recovery)		1,407				6,671				909				(97,327		)
After-Tax Income (Loss) for the Period		69,439				(281,168		)		(128,807		)		480,302
Income (Loss) per Share - Basic	$	0.00			$	(0.00		)	$	(0.00		)	$	0.01
Income (Loss) per Share - Diluted	$	0.00			$	(0.00		)	$	(0.00		)	$	0.01
EBITDA		361,515				63,051				158,596				651,570
EBITDA Margin %		23.00%				3.82%				8.90%				29.07%
Normalized EBITDA *		152,906				220,909				264,251				540,504
Normalized EBITDA Margin % *		9.73%				13.38%				14.83%				24.11%

 

			Q3 2024				Q2 2024				Q1 2024				Q4 2023
Cash			105,906				86,118			$	207,998			$	150,928
Working Capital (Deficiency)			(1,787,761		)		(1,932,157		)		(1,810,041		)		(1,758,949	)
Liquidity			550,386				378,358				521,092				623,506
Revenue			1,942,525				1,949,689				1,922,631				2,128,768
Operating Expenses			1,593,542				1,838,985				1,905,260				2,172,342
Other Expenses (Income)			179,406				118,863				(144		)		3,756,134
Income Tax Expense (Recovery)			-				120,872				1,950				(134	)
After-Tax Income (Loss) for the Period			169,577				(129,031		)		15,565				(3,799,574	)
Income (Loss) per Share - Basic		$	0.00			$	(0.00		)	$	0.00				($0.06	)
Income (Loss) per Share - Diluted		$	0.00			$	(0.00		)	$	0.00				($0.06	)
EBITDA			374,900				307,730				356,704				(3,407,954	)
EBITDA Margin %			19.30%				15.78%				18.55%				(160%)
Normalized EBITDA*			466,458				337,818				237,581				211,061
Normalized EBITDA Margin % *			24.01%				17.33%				12.36%				9.91%

 

* A non-IFRS measure. See "Non-IFRS financial measures" for definitions and reconciliation of non-IFRS measures to the relevant IFRS measures.

During the quarter, the Company reached a settlement agreement of $150,000 in connection with the ongoing legal proceedings related to the 2021 acquisition of Digital Media Services Inc. ("DMS").

Subsequent to the quarter end, the Company finalized a legal settlement resulting in the anticipated receipt of $550,000. The related legal proceedings have concluded as a result.

Shares for Services

Pursuant to a previously disclosed shares for services arrangement (the "Shares for Services Arrangement") entered into between the Company and Grant Schuetrumpf, the Company will issue a total of 101,662 common shares of the Company (the "Shares") for the months of August through October 2025, as follows:

• 37,526 Shares at a price of CAD $0.06 per Share for the month of September;
• 64,136 Shares at a price of CAD $0.07 per Share for the months of August and October, collectively.

Upon the issuance of the Shares, the Company will have issued a cumulative total of 383,135 Shares for the months of January through October 2025 under the Shares for Services Arrangement.

As Mr. Schuetrumpf is an officer and director of the Company, the issuance of the Shares under the Shares for Services Arrangement is considered a "related party transaction" under Multilateral Instrument 61-101 - Protection of Minority Security Holders In Special Transactions ("MI 61-101") and the TSXV. The Company is relying on the exemptions from the formal valuation and the minority shareholder approval requirements of MI-61-101 contained in section 5.5 (a) and Section 5.7 (1)(a) as the fair market value of the common shares being issued to insiders in connection with the Shares for Services Arrangement does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.

About YANGAROO

Yangaroo is a technology provider in the media and entertainment industry, offering a cloud-based software platform for the management and distribution of digital media content. Yangaroo's Digital Media Distribution System ("DMDS") platform is a patented cloud-based platform that provides customers with a centralized and fully integrated workflow directly connecting radio and television broadcasters, digital display networks, and video publishers for centralized digital asset management, delivery, and promotion. DMDS is used across the advertising, music, and entertainment awards show markets.

The address of the Company's corporate office and principal place of business is 360 Dufferin Street, Suite 203, Toronto, Ontario, M6K 1Z8.

# # #

For YANGAROO Investor Inquiries:
Grant Schuetrumpf
Ph: (416) 534 0607
investors@yangaroo.com

Neither the TSX Venture Exchange nor Its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the accuracy of this release.

Use of Non-IFRS Financial Measures

The following non-IFRS definitions are used in the press release because management believes that they provide useful information regarding the Company's ongoing operations. Readers are cautioned that the definitions are not recognized measures under IFRS, do not have standardized meanings prescribed by IFRS, and should not be construed to be alternatives to revenues and net earnings determined in accordance with IFRS or as an indicator of performance, liquidity, or cash flows. The Company's method of calculating these measures may differ from the methods used by other entities and accordingly, these measures may not be comparable to similarly titled measures used by other entities or in other jurisdictions.

EBITDA as defined by the Company, means Earnings Before Interest and financing costs (net of interest income), Income Taxes, Depreciation, and Amortization. EBITDA is derived from the statements of comprehensive income (loss) and can be computed as revenues less salaries and consulting expenses, technology and production expenses, marketing and promotion expenses, general and administrative expenses, remeasurement of contingent consideration, foreign exchange (gain) loss, and any non-recurring items such as restructuring expenses, acquisition fees, acquisitions related settlement gain and revaluation of foreign exchange embedded derivatives.

Normalized EBITDA, as defined by the Company, means EBITDA adjusted for one-time non-recurring or non-cash items such as share-based compensation expenses, acquisition fees, restructuring fees, foreign-exchange (gains) loss, revaluation of FX embedded derivative, remeasurement of contingent consideration and acquisition related settlement gain.

EBITDA Margin and Normalized EBITDA Margin as defined by the Company means EBITDA and Normalized EBITDA, respectively, as a percentage of revenue.

Working capital as defined by the Company means current assets less current liabilities.

Liquidity as defined by the Company means cash plus the available capacity in the Company's revolving credit facility.

The Company believes EBITDA, EBITDA margin, liquidity, and working capital, are useful measures because they provide information to both management and investors with respect to the operating and financial performance of the Company.

Cautionary Note Regarding Forward-looking Statements

This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes.

Forward looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of YANGAROO, that may cause the actual results, level of activity, performance or achievements of YANGAROO to be materially different from those expressed or implied by such forward looking statements. Although YANGAROO has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company is making forward-looking statements with respect to the issuance of the Shares pursuant to the Shares for Services Arrangement, including the number of Shares to be issued, as well as the anticipated receipt of a settlement amount.

Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause YANGAROO's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, YANGAROO assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276258

FAQ

What were Yangaroo (YOOIF) Q3 2025 revenue and YoY change?

Yangaroo reported Q3 2025 revenue of $1,572,017, a 19% decline versus Q3 2024.

How did Yangaroo's Q3 2025 Normalized EBITDA compare to Q3 2024?

Q3 2025 Normalized EBITDA was $152,906, down 67% YoY from $466,458.

Did Yangaroo report any legal settlements in Q3 2025 affecting cash?

Yes. The company recorded a $150,000 settlement in Q3 and expects a subsequent $550,000 receipt post-period.

What operational factors did Yangaroo cite for weaker Q3 2025 results?

Management cited tariff-related cost pressures, reduced advertising volumes, and lower music-video delivery volumes.

What was Yangaroo's cash and liquidity position at September 30, 2025?

Cash was $160,165; reported liquidity was $645,044 with a working capital deficiency.