Star Metro - GECC Reports Fiscal 2025 Q3 Financial Results

The Company's selected financial information for the last three completed fiscal quarters is as follows. Accounting policies under IFRS were consistently applied across all periods. All figures are in thousands of Canadian dollars, except share and per share data, unless otherwise noted.

The following table reconciles the non-IFRS measure to the most directly comparable IFRS measure disclosed in the Company's financial statements for the year ended August 31, 2024, which is net income (loss).

"GECC's Q3 2025 financial results demonstrate steady growth and recovery across total revenue, net income, adjusted EBITDA, and strategic cost reductions as compared to the second quarter of fiscal 2025 ("Q2 2025")." stated Mr. Toby Chu, President, CEO, and Chairman of GECC. "We anticipate a continued gradual recovery in the international education sector, further declines in interest rates in the coming quarters, and maintain a laser-like focus on our student housing development, construction, and operations." Mr. Chu added.

Key highlights from the Q3 results include:

• Total revenue showed stability with a marginal increase from $16,766 in Q2, 2025 to $16,842 in Q3, 2025.

• Net income experienced a significant recovery from a loss of $4,940 in Q1, 2025, to a profit of $1,323 in Q3, 2025.

• Adjusted EBITDA demonstrated a substantial improvement from $1,306 in the first quarter of fiscal 2025 to $6,805 in Q3, 2025.

Over the past three quarters of fiscal 2025, we have successfully converted conventional mortgages to CMHC-backed low-interest loans and forged partnerships with strategic allies in financing, development, and investments. Furthermore, two of our under-development properties have received rezoning approvals, allowing for a substantially increased density compared to their current state. Our GEC® Oakridge project is now 19 months into its 24-month construction cycle, with projected possession in early 2027.

Most notably, we signed a formal agreement to divest one of our educational assets for substantial cash proceeds, with closing expected to occur this month.

See our previously issued news releases here:

• https://gechq.com/blog/2025/05/14/gecc-announces-significant-progress-interest-rate-reduction-oakridge-construction-underway-and-strategic-partnerships-forged/

• https://gechq.com/blog/2025/07/07/gecc-signs-agreement-to-divest-part-of-its-educational-assets/

• https://gechq.com/blog/2025/06/24/education-mega-centre-secures-development-permit-approval/

• https://gechq.com/blog/2025/06/16/gecc-announces-urban-design-panel-approval-for-the-gec-langara-project-with-increased-density/

Mr. Chu concluded, "The past 24 months presented challenges for various sectors of the economy. GECC remains focused on optimizing operational efficiency, reducing interest expenses, enhancing our operating model, streamlining our asset base, and completing our current development projects to both increase long-term rental income and add substantial value to our portfolio."

About GECC:

Since 1994, GECC has established itself as a leading player in the Canadian education and student housing sector, serving both domestic and international markets. GECC offers a comprehensive range of services, encompassing business and language colleges, student-centric rental apartments, recruitment services for educational opportunities, and a network of campuses and offices across 40 locations.

Through its subsidiaries, GECC provides a holistic educational experience for over 12,500 students annually. These subsidiaries include established institutions like Sprott Shaw College (founded in 1903), Sprott Shaw Language College, Vancouver International College, and CIBT School of Business & Technology. These subsidiaries offer programs covering healthcare, business, and technology.

GECC also addresses student housing needs through its subsidiary, Global Education City Holdings Inc. ("GECH"). GECH focuses on developing and managing student-centric rental apartments and education super-centres in Metro Vancouver, boasting a portfolio exceeding $1.3 billion, including operational properties and projects under development.

GECC also owns Global Education Alliance Inc. ("GEA"), a subsidiary that specializes in placing students in elite North American schools and universities, and Irix Design, a leading design and media communication company based in Vancouver, Canada.

Visit GECC online at www.GEChq.com or www.GECliving.com to explore our services and watch our corporate video.

Toby Chu
Chairman, President & CEO
Global Education Communities Corp.

Investor Relations Contact: 1-604-871-9909 extension 319 or | Email: [email protected]

FORWARD-LOOKING STATEMENTS

Some statements in this news release contain forward-looking information (the "forward-looking statements") about the Company and its plans. Forward-looking statements are statements that are not historical facts. Forward-looking statements in this news release include, without limitation, that interest rates are expected to further decline in the coming quarters and the expectation of a continued gradual recovery in the international education sector. The forward-looking statements are subject to various risks, uncertainties and other factors (collectively, the "Risks") that could cause GECC's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. The Risks include, without limitation, economic factors and monetary policy and the risk factors identified in the MD&A forming part of the Q3 2025Financial Report. Forward-looking statements are based on the beliefs, opinions and expectations of GECC's management at the time they are made, and the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances should change, except as may be required by law.

NON-IFRS FINANCIAL MEASURES

The Company has included certain non-IFRS financial measures throughout this document including: (a) Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA"); (b) Adjusted EBITDA which is EBITDA adjusted for the gain (loss) on change in fair value of the Company's investment properties, the gain (loss) on change in fair value of derivative instruments, one-off gains from sale of property and equipment; and (c) Gross Profit ("Gross Profit") which is the difference between revenue and direct costs of sales. These non-IFRS financial measurements do not have any standardized meaning as prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Accordingly, these performance measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management uses EBITDA and Adjusted EBITDA metrics to measure the profit trends of the business units and segments in the consolidated group since it eliminates the effects of financing decisions. Management uses Gross Profit to assess how efficiently the Company generates profit from the sale of goods or services. Certain investors, analysts and others utilize these non-IFRS financial metrics in assessing the Company's financial performance. These non-IFRS financial measurements have not been presented as an alternative to net income (loss) or any other financial measure of performance prescribed by IFRS. Reconciliation of the non-IFRS measures have been provided throughout the Company's MD&A, as applicable, filed under the Company's profile on www.sedarplus.ca.

SOURCE: Global Education Communities Corp

View the original press release on ACCESS Newswire

G.Boudreau--SMC