Adcore Reports Third Quarter 2026 Results: Gross Margin Rises to 64%, Operating Loss Halved, Cash Up to $4.3 Million as Restructuring Takes Hold

(All figures in CAD unless otherwise stated)

TORONTO, ON / ACCESS Newswire / November 10, 2026 / Adcore Inc. (“Adcore” or the “Company”) (TSX:ADCO)(OTCQX:ADCOF)(FSE:ADQ), a global marketing-technology company operating an AI-powered Marketing Cloud, today announced financial results for the three months ended September 30, 2026.

The third quarter is starting to show the early effect of the company-wide restructuring announced on October 21, 2026. The restructuring began in September 2026 and was substantially complete by October 2026, thus Q3 reflects only a partial-quarter benefit; the fourth quarter of 2026 is anticipated to demonstrate a significantly greater impact from the updated cost structure, with the full effect from the first quarter of 2027 onwards.

Third quarter 2026 highlights (Q3 2026 vs. Q3 2025 unless stated)

• Gross profit of $3.7 million, up 20% year over year, on revenue of $5.8 million.
• Gross margin of 64%, up from 40% a year earlier and 51% in Q2 2026, as cost of revenue fell 54% year over year and 41% quarter over quarter.
• Operating loss narrowed to $263,000, down 54% from $570,000 in Q2 2026.
• Positive Adjusted EBITDA of $112,000, up from $42,000 in Q2 2026.
• Cash from operating activities of $0.9 million in the quarter, compared with cash used in operating activities of $1.5 million in Q3 2025 and cash used of $0.4 million in Q2 2026.
• Cash of $4.3 million at September 30, 2026, up from approximately $4.0 million at June 30, 2026, notwithstanding restructuring costs incurred in the quarter. The Company has no debt.
• North America revenue was $1.3 million, up 27% from $1.0 million in Q3 2025.
• Total operating expenses decreased 7% to $3.9 million from $4.2 million in Q2 2026, with SG&A down 6% and R&D down 15%.

Nine months 2026 highlights (vs. nine months 2025)

• Gross profit of $10.5 million, up 13% from $9.2 million; gross margin of 49%, up from 44%.
• Cost of revenue of $11 million, down 8% from $12 million.
• North America revenue of $4.2 million, up 15% from $3.7 million; APAC revenue of $11.7 million, up 6% from $11.1 million.

Q4 2026 Outlook

As announced on October 21, 2026, the Company expects to return to operating profitability in the fourth quarter of 2026, targeting operating profit of approximately $500,000 to $700,000, and expects to remain profitable on an operating basis thereafter. The restructuring program is anticipated to yield a more pronounced effect starting in the fourth quarter of 2026, with the full effect from the first quarter of 2027 onward. The Company continues its review of strategic alternatives for its AI product portfolio, Proposaly, AI Studio and Total Eclipse, including external funding at the product level, partnerships and divestiture. No transactions have been agreed to; the Company will update the market if and when any transaction is concluded.

Omri Brill, CEO and Founder of Adcore, commented: “Q3 is the first quarter where you can start to see the effect of the restructuring we described on October 21. Gross margin went from 40% to 64% in a year. We generated cash from operations. Cash went up, not down, in a quarter where we started to pay for a restructuring. And the operating loss was cut in half from Q2 – with only a few weeks of the new cost base in the numbers”.

Mr. Brill continued: “Revenue was lower, and I want to be direct about why. We made a strategic decision to focus on higher-margin revenue and let lower-margin business go, even though it was adding to the top line. The numbers show that it was the right call: cost of revenue fell by more than half, and gross profit went up while revenue went down. We are running a smaller top line that earns more. That is the trade we chose, and we would make it again.”

Mr. Brill added: “The balance sheet tells the same story. We ended the quarter with $4.3 million in cash and no debt; trade payables fell from $8.4 million at year-end to $4.6 million, and operating cash flow turned positive as the working-capital build-up from the first half unwound. Operating expenses ran at roughly $1.3 million a month in Q3; the restructuring takes that to roughly $0.9 million by year-end.”

“Q4 is the first quarter with nearly the full new cost base in the numbers, and we expect it to be the first operating profit this company has reported since Q4 2025. From there, the plan has not changed: a lean, profitable, cash-generating operating business, external capital for the AI products, and a return of capital to shareholders as results allow.”

CONFERENCE CALL AND WEBCAST INFORMATION

Adcore will host a webcast and conference call to discuss Q3 results on Tuesday, November 10, 2026, at 10:00 a.m. ET.

To register for the conference call/webcast please click here or visit: https://link.adcore.com/Q3-2026.

The conference call will include a brief statement by management and will focus on answering questions about Adcore’s Q3 results. Questions regarding results can be sent in advance to invest@adcore.com.

USE OF NON-IFRS MEASURES

Management uses Adjusted earnings before interest, income taxes, depreciation, and amortization (“Adjusted EBITDA”) as a key financial metric to evaluate Adcore’s operating performance and for planning and forecasting future business operations. Adjusted EBITDA excludes significant items that are non-operating in nature in order to evaluate Adcore’s core operating performance against prior periods. Adjusted EBITDA is not a measure of financial performance under GAAP and should be considered in addition to, and not as a substitute for net earnings, overall change in cash or liquidity of the business as a whole. Management believes the use of Adjusted EBITDA allows investors and analysts to understand the results of the continuing operations of the Company.

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ABOUT ADCORE

Adcore is a leading AI-powered marketing technology company.

By combining extensive industry knowledge and experience with its proprietary artificial intelligence (AI) powered technology, Adcore offers a unique digital marketing solution that empowers entrepreneurs and advertisers by managing and automating their e-commerce store advertising and monitoring and analyzing the performance of their advertising budget to ensure maximum Return on Investment. Adcore is a certified Google Premier Partner, Elite Tier Microsoft Partner, Facebook Partner, Verified Amazon Partner, and TikTok Partner.

Established in 2006, the Company employs over fifty people in its headquarters in Tel Aviv, Israel and satellite offices in Toronto, Canada, Melbourne, Australia, Hong Kong and Shanghai, China.

For more information about Adcore, please visit https://www.adcore.com/investors/, https://www.adcore.com/blog or follow us on LinkedIn.

FORWARD-LOOKING STATEMENTS

This press release contains or may contain certain forward-looking statements, including statements about the Company, its Q4 and 2027 outlook including its expectation to return to operating profitability in Q4, the review of strategic alternatives, continued execution on the Company’s restructuring and of any of the Company’s potential plans. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof.

Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

For further information please contact:

ADCORE INC.
https://www.adcore.com/investors/

SOURCE: Adcore Inc.

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