Star Metro - EQ Inc. Reports Second Quarter 2026 Financial Results

TORONTO, ON / ACCESS Newswire / August 20, 2026 / EQ Inc. (TSXV:EQ) ("EQ Works" or the "Company"), a leader in AI and data-driven software and solutions that empowers brands to better understand, acquire, and retain their most valuable customers, today announced its financial results for the second quarter ended June 30, 2026.

Revenue for the second quarter of 2026 was $2.6 million, an increase of 40% compared to the first quarter of 2026. The sequential improvement was supported by growth across ClearLake and Integrated Rewards as EQ continues to execute on its strategy of building a more diversified business around proprietary data, technology and recurring revenue opportunities. Cash at the end of the quarter was $1.1 million, compared to $416,000 at December 31, 2025, reflecting the closing of the Company's convertible debenture financing in May 2026.

Second Quarter 2026 Operational Highlights

The second quarter of 2026 demonstrated continued progress across all aspects of EQ's business, alongside meaningful platform milestones that position the Company well for the second half of 2026:

• 40% Sequential Revenue Growth: Generated $2.6 million revenue in Q2 2026, driven by continued client demand across ClearLake, Integrated Rewards, and media solutions.

• Record ClearLake Revenue: Delivered 57% sequential revenue growth for ClearLake over Q1 2026 reflecting growing adoption.

• Expanded Enterprise Partnership: Renewed a three-year contract with a leading Canadian publisher, including the adoption of a ClearLake SaaS license following campaigns that delivered up to 40% higher average order values and nearly double the conversion rates.

• Integrated Rewards Momentum: Grew division revenue by over 12% quarter-over-quarter, supported by continued network expansion.

• 300+ Merchant Offer Network: Expanded Integrated Rewards to over 300 active merchant-funded offers during the quarter.

• New AI Audience Segmentation Launch: Enhanced ClearLake capabilities with 90 prebuilt, AI-powered audience segments covering Generational, Life Stage, and Lifestyle categories.

• Strengthened Balance Sheet: Raised $1.1 million in gross proceeds through a convertible debenture financing, strengthening our balance sheet and providing capital to support continued platform development and commercial growth.

"Q2 provides further evidence that the strategy we have been executing is gaining traction," said Geoffrey Rotstein, President and CEO of EQ Works. "Revenue increased 40% sequentially, ClearLake delivered a record quarter, and Integrated Rewards continued to grow as we build the business around proprietary data and technology. More importantly, we're seeing customers expand how they work with EQ, including the adoption of ClearLake as a SaaS platform following strong and measurable campaign results. Our focus remains on converting this momentum into higher-quality, recurring revenue and building ClearLake and Integrated Rewards into increasingly meaningful drivers of EQ's growth."

Selected Financial Information

Note: Gross profit calculated as revenue less publishing costs of $1,588 (Q2 2025: $1,697).

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:

Adjusted EBITDA for three and six months ended June 30, 2026 and 2025

About EQ Works

EQ Works (www.eqworks.com) enables organizations to understand, predict, and influence customer behaviour through proprietary data, advanced analytics, and artificial intelligence. The Company's ClearLake SaaS platform delivers AI powered audience intelligence and data driven insights, while its Integrated Rewards division and media solutions help businesses improve customer acquisition, engagement, and measurable business outcomes.

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 June 30, 2026. 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.

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

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

SOURCE: EQ Inc.

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K.Morrison--SMC