Star Metro - EQ Inc. Reports First Quarter Financial Results

TORONTO, ON / ACCESS Newswire / May 28, 2025 / EQ Inc. (TSXV:EQ.V) ("EQ Works" or the "Company"), a leader in AI and data driven software and solutions, announced its financial results today for the first quarter ended March 31, 2025.

Proprietary data used for artificial intelligence and machine learning models continued to drive interest and excitement during the quarter. First-party data collected through the Paymi division, combined with advanced insights and analytics from the proprietary Clear Lake platform and the expert execution of EQ's media team, has equipped the Company with a unique and dynamic toolkit. This powerful combination enables businesses across multiple industries to make smarter decisions by gaining access to information that was previously unattainable. Backed by a robust suite of products that drive measurable value for our customers, the Company has built a strong pipeline of opportunities and a solid foundation for growth in 2025.

Revenue for the quarter remained steady year-over-year at $1.4 million, while pipeline activities and proposals across all business units, including its proprietary SaaS product Clear Lake, have seen substantial growth. Additionally, EQ is actively pursuing new customer segments where demand for its proprietary data is rising and where it believes significant value can be generated. Looking ahead to 2025, the Company remains laser focused on delivering solutions that fully leverage AI-driven products and proprietary data assets. These strategic engagements not only create greater value for clients but also establish a more robust and sustainable recurring revenue model.

Gross margin for the quarter of 40% was an improvement over Q4 2024, and the adjusted EBITDA loss of $0.6 million was consistent with the same period a year ago. In addition, EQ's backlog continues to grow and is currently forecasting its second quarter revenues to surpass those of the previous year and revenue for the first 6 months of 2025 to also exceed what the Company generated for the same period a year ago.

"Profitability and growth continue to be our focus" said Geoffrey Rotstein, President and CEO of EQ Works. "A few years ago we set out to create a business division focused on generating unique proprietary data to help solve real business problems. Whether in marketing, data analytics, consumer behavior or competitive intelligence, we recognized that a strong proprietary data set was critical to delivering impactful and effective solutions. Today, we are delivering on that vision. Our team has developed a suite of products that combine real-time data with cutting-edge AI and machine learning technologies to empower our clients to operate more effectively. We are excited about the results we are seeing, the pipeline being generated, and the progress we are making in 2025".

Subsequent to quarter end, at the Company's Annual and Special Meeting held on May 21, 2025, EQ elected two new Board members to the Company, John Kim and James Lanthier. In addition, following the AGM, the Company also welcomed Catherine Warren to the Board, as a third independent director. "I would like to welcome John, James and Catherine to the EQ Board and I know that their experience and skill sets will prove invaluable to EQ as we continue to execute our vision and drive value to our Shareholders," said Geoffrey Rotstein. "I would also like to sincerely thank Vernon Lobo and James Beriker for their invaluable contributions and dedicated service to EQ. Their leadership, expertise, and commitment have played a significant role in guiding the company through important milestones and growth phases and will have a lasting impact on the organization."

Non-IFRS Financial Measures

EQ Works measures the success of the Company's strategies and performance based on Adjusted EBITDA, which is outlined and reconciled with net loss in the section entitled "Reconciliation of net loss for the period to Adjusted EBITDA" in the MD&A. The Company defines Adjusted EBITDA as net loss from operations before: (a) depreciation of property and equipment and amortization of intangible assets, (b) share-based payments, (c) finance income and costs, net, and (d) restructuring costs. Management uses Adjusted EBITDA as a measure of the Company's operating performance because it provides information on the Company's ability to provide operating cash flows for working capital requirements, capital expenditures, and potential acquisitions. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in its industry.

The non-IFRS financial measure is used in addition to, and in conjunction with, results presented in the Company's consolidated financial statements prepared in accordance with IFRS and should not be relied upon to the exclusion of IFRS financial measures. Management strongly encourages investors to review the Company's consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-IFRS financial measures are not standardized, it may not be possible to compare these financial measures with other companies non-IFRS financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-IFRS adjustments described above, and exclusion of these items from the Company's non-IFRS measures should not be construed as an inference that these costs are unusual, infrequent, or non-recurring.

The table below reconciles net loss from operations and Adjusted EBITDA for the periods presented:

About EQ Works

EQ Works (www.eqworks.com) enables businesses to understand, predict, and influence customer behaviour. Using unique data sets, advanced analytics, machine learning and artificial intelligence, EQ Works creates actionable intelligence for businesses to attract, retain, and grow the customers that matter most. The Company's proprietary SaaS platform mines insights from movement and geospatial data, enabling businesses to close the loop between digital and real-world consumer actions.

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Certain statements contained in this press release constitute "forward-looking statements". All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company's future financial position and results of operations, strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions, or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's expectations, estimates, and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks, and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied, or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance, or achievements to differ materially include, but are not limited to, the risk factors discussed in the Company's MD&A for the three months ended March 31, 2025. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives but cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and any other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. 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 subsequent information, events, or circumstances or otherwise, except as required by law.

EQ Inc.
Michael Kahn, Chief Financial Officer
[email protected]

SOURCE: EQ Inc.

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K.Morrison--SMC