Let's begin. Once again, good morning, and thank you for joining Adcore's Q4 and 2025 financial results earnings call.

This morning Adcore released its financial results, and you might have seen, we finished 2025 on a high note, finishing with 8% increase in revenue compared to Q4 2024. Today we'll be going over those results in detail and provide you an update on ongoing company initiatives.

Today you'll hear some familiar voices, from myself, Nick Campbell, Head of Investor Relations here at Adcore, you'll hear from Omri Brill, Adcore CEO and Founder, and Amit Konforty, Adcore CFO. The agenda for today: before we begin, we'll go over some forward-looking statements you should be aware of when listening to this call, then that will be followed by the CEO opening remarks, followed by the CFO financial highlights, and finally Q&A.

If you do have a question during this call, I'll ask you to use the submit a question feature in Zoom, and that will be addressed at the end. Before we begin, I'll give everyone a moment to review this, but just please be aware, during this call we will be discussing items that are forward-looking and somewhat uncertain in nature.

I'll give everyone 30 seconds to review this excerpt, and then we will begin. Very good.

With that, I am going to pass the mic to Omri for the CEO opening remarks. Omri, the floor is yours.

Thank you very much, Nick. Good morning, everyone.

Not every day that we have the chance to speak about the company results for Q4 2025 and full year of 2025. It's only happen once a year, I guess.

Today is a special day for us, and we're happy to be here. I would say what I would like to cover today is obviously what we've been able to achieve in Q4 and the full year 2025, but equally important, maybe share with the shareholders some of the highlights of what we anticipate to see in 2026, because we already started 2026.

I don't know if you noticed it or not, but I think it's more important also forward-looking and not just backward-looking. Let me share my screen and we can jump right to it.

One second. Cool.

Let's go. Like I mentioned, we ended 2025 with a strong note, 8 8%, sorry, 8% Q4 gross year-on-year, near record cash flow.

Correct me if I'm wrong, Amit, but I think that's the second biggest quarter in terms of cash flow generated from operational activity in Q4 2025. Equally important, we are entering 20 26 as an AI-first company.

We'll cover what exactly does it mean for us, for you as shareholders. We entered with a very strong momentum with new partnerships that we're going to discuss, and also with a strong balance sheet to basically fuel all the growth we anticipate to see in 2026 and beyond.

Like I said, strong finish of 2025, and very strong start of 2026 as well, and even accelerating the momentum in 2026. If we talk about quarterly revenue result, total top-line revenue amounted to a bit more than $12 million, $12.1 [million?]

to be accurate, in Q4 2025. That represents 8% year-on-year growth compared to Q4 2024, and which amounted to a bit more than $11 million.

Quality gross KPI: gross profit in Q4 2025 was $3.8 million, almost equal to $3.9 million that we achieved in Q4 2024. If we look at cash and cash equivalents, a bit more than $10 million in Q4 2025, very similar to the results that we've been able to achieve in Q4 2024 as well.

Maintaining a very high level of cash and cash equivalent. It's a massive jump from $7.3 [million?]

that we've been able to achieve in Q3 2025, more than 3%—$3 million, sorry—in Canadian dollar difference. Again, earning report highlights for the quarter: Q4 revenue up 8% year-on-year.

APAC region exploded with almost 40% year-on-year growth Q4 2025. Near record Q4 operating cash flow, $4.17 million, 9% year-on-year growth, very strong, second strongest quarter for us in the company history in terms of cash flow.

Q4 operating profit turned positive this quarter, as we anticipated and shared with our shareholders as well, and positive adjusted EBITDA. This is actually the sixth consecutive quarter that we've been able to demonstrate or to deliver a positive adjusted EBITDA, which is strong.

Some earning report highlights for full year 2025: so revenue grow for the entire year by 3% year-on-year to more than $33 million Canadian dollar. APAC revenue surged by 34% for the full year, which is big.

Operation cash flow remained strongly positive, $2.3—$2 million. Even if we have negative quarter, we can definitely see that we still have full year positive operational cash flow.

Cash position reserved strong at $10.3 million in the end of 2025. All in all, like I said, strong finish of the year of 2025, and I would say strong results all in all in, I would say, full year 2025.

Equally important, like I mentioned before, 2025 results is a thing of the past. We also want to talk about the future and what 2026 going to look like, what we anticipate to see in 2026.

Let's jump right to it. We call 2026 the year of acceleration.

We see a fast acceleration in almost every different department or things that we do in Adcore, and that's give us a lot of confidence that basically this can be a breakthrough year for the company. If you look at Adcore, there's a lot of, I would say, history and a lot of experience build up in this company.

We have 20 years of digital marketing expertise, which is massive. Actually in June this year, in 2026, going to mark our 20 years old anniversary, so that's a big milestone for a company.

We have more than 50 years in software development, a lot of experience, a lot of tools that we developed already over the years, and 10 years of strategic partnership with all the major platforms. What we see now with AI, AI is like the spark that ignite a fast acceleration across all these different departments, whether it's digital marketing and services solution, software development for sure, AI is the king over there, and also strategic partnership, everything tied together, and everything now is accelerating thanks to AI.

We're going to discuss how AI affecting the company and how Adcore going to look like a very different company, I would say similar yet very different company, in 2026 and beyond. Just to give you some numbers and metrics behind when we say acceleration, what do we mean, let's talk about Australia, for example, a key region.

Australia represents, Amit, 40, 50% of the entire APAC region to date?

Usually.

Okay. I think, and we already reported that Australia had a record January, usually January should be slower than I would say December and November because of end of year sales, but actually we see this region or specific Australia accelerating.

What is more exciting over here, obviously we're excited about a record month for us, that 40% of the net revenue generated in Australia actually come from services that wasn't even exist in the beginning of 2025, like AI Studio, that we already discussed in the previous earning calls, top-of-funnel activity, SEO, for example. All of that wasn't exist in the beginning of 2025, and we see very fast adoption of new services and solutions in this specific branch, and I think that's a good reflection to what we're about to see in other branches as well, and we're going to discuss it as we move along.

Again, we are introducing more services and solutions, we see good market fit, fast adoption, and Australia, in a sense, leading the way to what you're about to see with other branches as well, because other branches obviously will follow and introduce more services and solutions as 2026 unfold as well. We already see similar trends happening in Tel Aviv, for example, which is the biggest part of the EMEA region, and I think North America to follow as well.

In 2026, we're going to become an AI-first company, and AI-first company, that's means that we are going to be a very different company that the traditional, I would say, software companies that Adcore used to be. A few things to take into account for shareholders: A, to date, we are coding three fast fast, three times faster than we've been able to code, I would say, one year ago, for sure two years ago, for example, and this is massive.

It's not only how fast can we code, but it's also the level of sophistication and the deep of the features that we can develop. We code three times faster, but also, I would say, three times deeper.

We can develop now things and tools that up until, I would say, even six months ago, we can only imagine how we can develop such a thing, and now it's becoming reality, and this is massive. Can you hear me, Amit?

Yeah.

Okay. A lot of acceleration in software development.

We're going to launch a new line of AI agents, that's the first lines of AI agent the company plan to launch in the first part, it's going to be towards the half of the year, and this is big, AI agents going to be the wave of the future. This is a new type, I would say, of software tools, AI software tools, and Adcore plan to be there and basically dominate the, I would say, at least the market of, let's say, marketing-related AI agents.

Stay tuned about exciting news in this front as well. Last but not least is cost efficiency.

AI help us to code three times faster, that's means that we can code with less people in a sense, and still achieve big results. We believe that this type of level of efficiency will enable us to grow as a company, grow our service, grow our lines of two lines, but maintain the headcount more reasonable, and this is something that wasn't able before.

In 2026, we think we can already see some fruits of this efficiency, but for sure 20 27 and 2028 should be big impact of how many people we need in order to operate our business, and this is massive. Still, to date for Adcore, the single biggest line item in our book for expenses is salaries, of course.

Amit, am I wrong?

No, correct.

Okay. Salary is a big thing, right?

With AI, salary can reduce a lot, or at least not continue to grow in the phase that been growing up until now, which is huge by itself. We discuss new services and solutions, we discuss their effect, or the tremendous effect of branch like Australia, for example.

We discuss becoming an AI-first company and how it's actually affecting, not as a slogan, how we do business, how we coding, how we are more efficient, the level and sophistication of tools that we can develop. Then I would like to talk partnership.

Adcore already benefit from, I would say, very strategic partnership. Google was, I would say, the first strategic partnerships that we had more than 10 years now.

Microsoft, second strategic partnerships that we had, I think we are entering the seven years of this strategic partnership, very important for us. Meta, obviously, a strong partnership.

Criteo as well. Actually in Q1 2026, we signed a new partnership agreement with TikTok as well, and which we are very excited about, and basically give us a very good coverage of the entire digital marketing landscape.

Between, let's say, Google, Microsoft, TikTok, Meta, and Criteo, I believe we cover between 85% to 90% of digital marketing as we know it, which is massive. This is very much tie to everything we do with the tools that we develop, the monetization pass it can bring us, and so on and so forth.

This type of partnership level is critical for the company ongoing success, whether it's software development and monetization, quick monetization pass for these tools, for example, whether it's new services and solutions that we bring, tie together with this partnership. Everything in the end of the day tied together and basically operate in a perfect harmony, I would say: software development, partnership, and marketing solutions as well.

Let's talk a bit about stock price. Obviously, we still continue even a deeper disconnection between how the company is actually operating and the future of the company and the current stock price.

Currently trading, I think, in yesterday numbers, at 14 cents or something like that, and again, uptick is massive. If we talk EV to EBITDA, we talk almost 50 500% uptick potential.

If you talk EV gross to gross profit, we talk even bigger number, more than 2,000% uptick. This something going on.

We continue saying that every earning call, but now I would like to say something a bit different to investors and shareholders. Maybe it's time to take a fresh look about Adcore as a company?

By becoming an AI-first company, by accelerating our growth now in 2026, and also look at the different metrics, $10 million in cash in hand, 3x fast development where it used to be even one year ago, almost 40% APAC region that accelerate. Again, APAC is leading the way.

This is the reason why APAC is accelerating, because they are adopting faster new technology and solutions over there. And $4.2 [million?]

, almost, million in a cash flow generating during the last quarter. That's all a very positive signals that basically the company is doing something right, and we have a bright future in front of us.

2026, like I said, we plan it to be a breakthrough year for Adcore. I think with the current stock price, actually it's represent far bigger, I would say, opportunity than a risk to shareholders.

Again, I strongly recommend when you're looking at Adcore to take a fresh look about where the company is currently standing and where, equally important, the company is going to go to, and obviously stock price need to follow at some point. That was my, I would say, I wouldn't say two cents, but my, I would say, remarks regarding the earning call, equally important about the direction the company is going in 2026.

We are very excited about what's going on, and trust me, there's so much going on, you almost wouldn't believe it. I would like shareholders to be at least as excited as we are about this company.

Amit, the floor is yours.

Okay. Thank you, Omri, and good morning, everyone.

Before beginning the financial overview, I would like to remind you that the following discussion will include GAAP financial measures as well as non-GAAP results. All amounts will be presented in Canadian dollars.

We delivered a strong fourth quarter, with revenue increasing by 8% year-over-year and cash from operating activities increasing by 9%. APAC revenue grew by 37%, reflecting continued progress in this region.

Let's review in more detail. For the three months ended December 31st, 2025, we delivered revenue of $12.1 million compared to $11.2 million in the same period last year, an increase of $0.9 million or 8%.

Gross profit was $3.8 million compared to $3.9 million, a decrease of $0.1 million or 2%. As for operational expenses, R&D expenses for the quarter were $0.3 million compared to $0.7 million in the prior year.

The decrease is mainly due to increase in capitalization during 2025. SG&A expenses for the quarter were $3.5 million compared to $2.8 million in the prior year.

The increase was mainly driven by increase in sales and marketing costs. Operating profit for the three months ended December 31st, 2025 was nil compared to $0.4 million in the same period last year.

As for net loss for the three months ended December 31st, 2025, it was $0.3 million compared to net profit of $0.5 million in the same period last year. Now, to revenue and gross profitability.

As shown on the left side of the slide, revenue increased by 8% in Q4 2025 compared to the same quarter last year. Gross profitability remained relatively stable with a decrease of 2%, mainly due to change in client mix.

On a full-year basis, to the right, we can see a moderate increase in revenue over time, and we expect 2026 to reflect further growth supported by the company's investment in technology and new initiatives. As for geographical revenue breakdown for Q4 2025, APAC revenue saw a very strong year-over-year increase of 37%.

This is primarily due to new client acquisition and an increase in existing client activity. EMEA and North America revenue decreased year-over-year by 8% and 44% respectively, mainly due to reduced budgets and stopped activities.

Net cash from operating activities: for the three months ended December 31st, 2025, cash from operating activities amounted to $4.2 million compared to $3.8 million in the same period last year, an increase of $0.4 million or 9%. This is reflecting a strong business performance.

In terms of financial position, cash and cash equivalents were $10.3 million as of December 31st, 2025, compared to $10.8 million at December 31st, 2024, a decrease of $0.5 million or 5%. We continue to maintain a strong cash position to support ongoing operation and growth.

As for total assets, they amounted to $21.6 million compared to $23.4 million at December 31st, 2024, a decrease of $1.8 million or 8%. As for the liabilities side of the financial position, we can see that the company is still debt-free.

Adjusted EBITDA: the quarterly non-GAAP results reflect adjustment for the following items: depreciation and amortization, share-based payment, and other non-operational items. For the three months ended December 31st, 2025, adjusted EBITDA was $0.5 million compared to $1.3 million for the same period in 2024.

This decrease of $0.8 million or 62% was mainly due to a higher operating loss as well as fewer adjustments in 2025 compared to the prior year. With that, I will turn the call back to Nick.

Very good. Thank you both Amit and Omri for your comments.

At this time, we'll move forward to the Q&A session. Starting off, looking at APAC, which has been posting exceptional growth.

Investors are interested what exactly is driving the growth in APAC, and can it continue at this rate, or do you expect it to continue? Can you provide some color there?

I'll take that. I think we both Amit and myself touch this topic to some extent.

Amit mentioned obviously new client acquisition, which is obviously a big growth factor, but I think equally important, I think what we see in Australia and what generate a lot of this growth that we are seeing, they are fast adoption of new marketing solutions and services that we are introduced to this specific market. Like I mentioned, in January 2026, which was a record month for this branch, actually 40% of this revenue come or net revenue come from the solution that wasn't even existing one year ago.

I would say it's a mix, an healthy mix between new client acquisition, fast adoption of new marketing and solution, and this is the type of acceleration we hope to see in more branches in 2026 as well, in other branches.

Very good. Thank you, Omri.

You you somewhat touched upon it, but I wanted to maybe drill down a bit. You mentioned new services gaining traction in Australia or the APAC region.

Can you just provide us a or elaborate a bit more on those solutions and, is there a market for these in in your other regions?

Absolutely. I think I would touch a few of them.

Adcore was primarily around performance marketing, so that's mean more top-of-funnel type of activity, a lot of Google, a lot of Meta, to some extent TikTok. What we introduce in 2025, it's more or let's say even in the end of 2024, it's more upper-funnel or full-funnel solution and activity, and that's big.

That's targeted bigger brands that have more holistic approach, branding, awareness, and everything attached to it. This to the back of introducing the AI Studio, Adcore AI Studio, that basically allows to generate, I would say TV-grade commercial using AI, for example, the combination between them, it's like a wildfire effect.

There's a lot of traction for both of these new services. They're coming with big budgets, bigger players, more enterprise type of players.

This is part of the effects that we see in Australia.

Thank you, Omri. In the press release issued this morning, you talked about being an AI-first company.

Again, you mention it within this call, but I'd love to understand a bit more. What does an AI-first company mean exactly?

It's mean a lot in many different ways, but I would say first and foremost, I would split it to two: A, we fully integrating AI and using AI in everything that we do. If let's say up until, I don't know, six months ago, one year for sure, I would say 80%, 90% of the code was been writing by our developers, I would say now it's flipped over.

AI is writing 90% of the code, and the developer just need to tweak it and fine-tuning and making sure that it's working okay. That's very big difference, I think.

AI is writing most of the code nowadays, the role of developers is changing, and we are changing with it. Like I said, that's allow us to write code three times faster, that's try us to write more sophisticated code.

This is just one example for one department, which is R&D, and you can take this same logic and now apply to marketing, for example, how marketing used to be done before AI and with AI. That's another example.

I think with AI as well, it's not only how we use AI to write code, it's also how we integrate AI within our tools. Currently, for example, let's say if we talk about Proposli, we have a 360-degree coverage of AI solution within the system.

If you're talking about the proposal that we send, the client portal, we have a chat bot that basically can interact with the recipient, he can ask him question, he can talk about the proposal, give him immediate answer, and help him getting this presentation or proposal across the finish line, for example. Same goes in the back end, where the company operate.

Again, he can operate, talk with the chat bot, understand, open new proposal, send new proposal, analyze what's going on. AI can tell the salesperson what he should tell to the recipient if they have questions, and so on and so forth.

Everything, I would say, is covered with AI, and that's a big, big difference between how things used to be happen, I would say, even one year ago, even six months ago. AI-first company, that's mean everything done with AI, and the people role is a bit different, I would say.

Very good, and that makes a lot of sense. Thanks, Omri.

I want to switch gears here. As of recently, I think most are aware, there's been a conflict in Iran.

Would love to hear, or would love to understand, is that impacting your business in EMEA or globally or otherwise, or how's that affecting business for you?

Amit, you want to take this one?

Honestly, we don't see a big impact on our operations globally, obviously, not a big impact, but also in Israel. I think a lot of the workforce started to work remotely, we even see a bit of spike in the activity.

It's remind me a bit of COVID happy days, we see a lot of online activity, a lot of e-commerce going on, and obviously we see more demand now to what we do from local clients in Israel than even I would say before. Again, everybody would like and hope that the war going to end soon and we'll have a peaceful days, but I think even with everything that's going on, in terms of let's say it's business, I would say business is still running strong, and even a bit stronger because of the COVID effect, or COVID similar effect, I would say.

Okay. Thank you, Omri, Amit.

Switching gears again, looking at costs, your capitalized software costs doubled in 2025. Thinking about going forward, should that tail off in 2026 as perhaps reduced investment in Proposli?

Bit of color there would be great.

I think Proposli, I would say, definitely we can reduce, or already starting reducing some of resources and efforts we put in Proposli. Actually we want to start recognize the capitalization of Proposli in 2026.

I think I would say that, yeah, we're not going to maybe invest in Proposli as much, we are investing in new tools, I mentioned some of them, the AI agents, I think this level of investment in innovation going to remain, but like I said, at least we don't need to increase it. We can maintain more or less what we have right now, we can write more code and better code with AI, I think with time we can maintain it, even to some extent maybe reduce it, but I think build much more.

It's not just how much we invest, it's also value for money. The value proportion is going very big.

Money will maybe maintained the same, but the value part of the equation going to grow a lot.

Very good. Thank you, Omri.

I want to switch regions here to North America. 2025 saw some softness.

Looking forward into 2026, do you expect that region to return to growth or what is the outlook there?

It's a fair question. I would say obviously we're not thrilled with the results that we've been able to demonstrate for this specific region in 2025.

I would say, A, if you look 2026, year-on-year comparison should be more favorable, we shouldn't see such a big drop of 40%, it should stabilize for sure in 2026. We anticipate that in the second part of the year, we should be returning back into growth mode as well in this region.

It's not a lost cause. We know there's a lot of potential for us over there, and it's just about making the right moves over there.

Very good. Very good.

Thank you, Omri. Looking forward to Q1, well, I guess Q1's almost concluding here, but you talked about it in the presentation, particularly the Australia region off to a hot start.

Do you have a growth rate in mind that you expect for Q1 overall and any preliminary view?

We, as we don't give guidance regarding to the quarterly results, but I can say that if we have something exciting to share with investors, whether it's a new innovation, new tool, like a big result, for example, like we saw in Australia, then obviously we will share them. We keep nothing in our pockets.

When we have something to share, we're going to share it with investors. That much I can tell.

Like I said, this is the reason why we started the conversation about 2026 with 2026 acceleration, because the company is accelerating.

Very good. Thank you, Omri.

That does conclude our Q&A session for today. Thank you, Omri, Amit, for your comments, and most importantly, thank you all for joining.

Omri, I want to pass back to you for any final words before we end here.

No, I think I already give a lot of words. Again, I want to thank everybody that participate today.

Again, very strong finish of 2025, but I would say even more important, even stronger start of 2026. A lot of exciting things going on, whether it's partnership, whether it's shift or the spark that AI give to everything we do, software development, new services and solutions, there's a lot going on, trust me, and you will see it in the numbers.

Very good. Thank you, Omri.

I agree, very exciting times ahead, and we look forward to keeping you updated. Once again, thank you all for joining and we'll talk to you soon.

Thank you, everyone.

Thank you.