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Route1 Announces Business Updates and Its Financial Results for the Three and Nine Months Ended September 30, 2025
NYSE - LSE
Route1 Announces Business Updates and Its Financial Results for the Three and Nine Months Ended September 30, 2025
TORONTO, ONTARIO / ACCESS Newswire / November 20, 2025 / Route1 Inc. (TSXV:ROI) ("Route1" or the "Company"), a leading engineering and professional services firm specializing in the deployment and integration of advanced data capture-based technologies, and actionable business intelligence ("ABI") to city, state, and federal first responder departments, public safety and parking managers, today provided important business updates and reported its financial results for the three- and nine-month periods ended September 30, 2025.
Q3-25 operating results commentary:
Launched Route1 ABI.
Grew quarterly ALPR support contract revenue beyond USD $300,000 per quarter, annualized recurring revenue of USD $1.2 million.
Quarterly growth in ALPR end users, average ALPR support contract value and introduction of Route1 ABI.
Monetized employee retention credits for USD $226,000 and USD $471,000 year to date.
Strong working capital improvement for the second consecutive quarter, the Company's working capital deficiency has improved by $817,000 over the last six months and $419,000 in the third quarter alone.
For the second consecutive quarter, the total bank indebtedness and notes payable balance decreased; in aggregate, bank indebtedness was reduced by $202,000 over the last two quarters.
Q3 2025 FINANCIAL RESULTS
Statement of operations In 000s of CAD dollars | Q32025 | Q22025 | Q12025 | Q42024 | Q32024 | |||||||||
Revenue | ||||||||||||||
Subscription and services | $ | 1,203 | $ | 1,465 | $ | 1,327 | $ | 1,130 | $ | 1,417 | ||||
Devices and appliances | 1,759 | 2,233 | 906 | 2,804 | 2,301 | |||||||||
Other | (7 | ) | (8 | ) | - | (3 | ) | (12 | ) | |||||
Total revenue | 2,954 | 3,691 | 2,234 | 3,931 | 3,706 | |||||||||
Cost of revenue | 1,775 | 2,343 | 1,324 | 2,542 | 2,376 | |||||||||
Gross profit | 1,179 | 1,348 | 910 | 1,389 | 1,331 | |||||||||
Operating expenses | 1,136 | 1,274 | 1,306 | 1,464 | 1,418 | |||||||||
Operating profit 1 | 43 | 74 | (395 | ) | (75 | ) | (87 | ) | ||||||
Total other expenses (income) 2 | (209 | ) | 135 | 181 | 226 | 196 | ||||||||
Net income (loss) | $ | 252 | $ | (61 | ) | $ | (214 | ) | $ | (301 | ) | $ | (283 | ) |
1 Before stock-based compensation. The last quarter of stock-based compensation expenses was Q4-24.
2 Includes gain or loss on asset disposal, stock-based compensation expense, gain on sale of employee retention credits, interest expense, income tax recovery, foreign exchange loss or gain, other expenses.
Adjusted EBITDA 3 In thousands of Canadian dollars | Q32025 | Q22025 | Q12025 | Q42024 | Q32024 | ||||||||
Adjusted EBITDA | $ | 220 | $ | 269 | $ | (190 | ) | $ | 130 | $ | 147 | ||
Depreciation and amortization | 176 | 195 | 205 | 205 | 234 | ||||||||
Operating profit | $ | 43 | $ | 74 | $ | (395 | ) | $ | (75 | ) | $ | (87 | ) |
3 Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, stock-based compensation, and other costs. Adjusted EBITDA does not have any standardized meaning prescribed under IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. Adjusted EBITDA allows Route1 to compare its operating performance over time on a consistent basis.
Subscription and services revenue in 000s of CAD dollars | Q32025 | Q22025 | Q12025 | Q42024 | Q32024 | |||||
Application software | $ | 14 | $ | 15 | $ | 17 | $ | 24 | $ | 37 |
Other services | 1,189 | 1,451 | 890 | 1,106 | 1,380 | |||||
Total | $ | 1,203 | $ | 1,466 | $ | 907 | $ | 1,130 | $ | 1,417 |
Other services revenue in 000s of CAD dollars | Q32025 | Q22025 | Q12025 | Q42024 | Q32024 | |||||
Technology life-cycle maintenance and support 4 | $ | 413 | $ | 412 | $ | 381 | $ | 378 | $ | 370 |
Professional services | 776 | 1,039 | 526 | 727 | 1,010 | |||||
Total | $ | 1,189 | $ | 1,451 | $ | 907 | $ | 1,106 | $ | 1,380 |
4 Route1 ABI license revenue is included in this line
In 000s of CAD dollars | Sep 30 2025 | Jun 30 2025 | Mar 31 2025 | Dec 31 2024 | ||||||||
Working capital analysis | ||||||||||||
Total current assets | $ | 2,913 | $ | 3,116 | $ | 1,939 | $ | 3,422 | ||||
Current liabilities: | ||||||||||||
Accounts payable and accruals | 3,637 | 4,260 | 3,480 | 4,683 | ||||||||
Contract liabilities (deferred revenue) | 1,189 | 922 | 917 | 995 | ||||||||
Operating lease liabilities (property leases) | 317 | 301 | 320 | 335 | ||||||||
Bank indebtedness and notes payable | 2,454 | 1,652 | 1,601 | 1,561 | ||||||||
Total current liabilities | 7,597 | 7,136 | 6,317 | 7,573 | ||||||||
Net working capital | (4,684 | ) | (4,020 | ) | (4,378 | ) | (4,151 | ) | ||||
Pro Forma net working capital 5 | $ | (724 | ) | $ | (1,143 | ) | $ | (1,541 | ) | $ | (1,261 | ) |
Debt analysis | ||||||||
Current bank indebtedness and notes payable | $ | 2,454 | $ | 1,652 | $ | 1,601 | $ | 1,561 |
Non-current bank indebtedness and notes payable | 676 | 1,564 | 1,731 | 1,586 | ||||
Total bank indebtedness and notes payable | $ | 3,130 | $ | 3,216 | $ | 3,332 | $ | 3,147 |
5 Net working capital adjusted for (a) bank indebtedness and notes payable, (b) contract liabilities, and (c) operating leases.
PRIVATE PLACEMENT
As first announced on November 4, 2025 Route1 expects to complete a non-brokered private placement of units(each, a "Unit") at a price of C$0.075 per Unit for gross proceeds of up to C$500,000 (the "Offering").
Each Unit consists of one common share in the capital of the Company (a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of C$0.10 for a period of 18 months following the issue date of the Units.
The Company intends to use the net proceeds of the Offering to fund the development of Route1's Actionable Business Intelligence ("ABI") software application.
Certain insiders may subscribe for Units under the Offering. The issuance of Units to such insiders will constitute a "related party transaction" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company intends to rely on the exemptions from the formal valuation and minority shareholder approval requirements set out in Sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively.
The Offering is expected to close in multiple tranches.
On November 19, 2025 Route1 announced that it had completed the first tranche (the "Initial Closing") of its non-brokered private placement of units(each, a "Unit") at a price of C$0.075 per Unit for gross proceeds of approximately $234,250. At today's Initial Closing, the Company issued a total of 3,123,332 Common Shares and 3,123,332 Warrants. All securities issued pursuant to the Initial Closing are subject to a four-month hold period, expiring on March 20, 2026.
About Route1 ABI
Through a single intuitive interface, parking professionals can instantly evaluate current operations against dynamic benchmarks developed by Route1's domain experts. Route1's real-world benchmarks are segmented by enforcement and parking, providing intelligent baselines for live performance indicator tracking and trend analysis.
Built-in analytics drive higher visibility, tighter accountability, and measurable impact at every layer of a user's operation including:
Uncovering latent revenue opportunities.
Optimizing curbside usage.
Monitoring parking facility usage, including occupancy, and dwell and turnover times.
Visualizing compliance - the good, the bad and the ugly.
Route1 processes raw ALPR streams directly from our end user's mobile and fixed ALPR cameras, providing the most complete, accurate, and timely operational picture in the industry. Our technology ensures that every visualization reflects ground truth - allowing for confident, data-backed decision in real time.
Version 4.0 - AI Co-Pilot
To be released in early 2026, Route1's co-pilot will be an AI operations co-pilot that acts as a force multiplier - exponentially extending staff capability. It will be purpose-built to optimize parking operations by combining advanced machine learning with a secure, scalable platform that keeps control of sensitive data in-house.
The system will run on a dedicated on-premises AI infrastructure including three GPU servers, backed by shared storage, solid-state checkpointing, and high-speed networking to deliver consistent low-latency performance.
Sized for state-of-the-art 13B-70B models, Route1's AI co-pilot will be designed for continuous refinement and understanding of unique parking operations and how socioeconomic factors and decisions can impact those operations in real time. Engineered for adaptive learning through feedback, measurement and refinement cycles, Route1's AI co-pilot will empower our clients to achieve even more in the future by unlocking advanced capabilities such as event-aware staffing, predictive compliance sweeps, proactive curb allocation, and strategic "what-if" investment planning. The more it is used, the stronger it becomes - growing into a domain-specialized AI expert in parking operations.
MONETIZING ROUTE1'S EMPLOYEE RETENTION CREDITS
The Employee Retention Credit ("ERC"), also known as the Employee Retention Tax Credit ("ERTC"), was designed to help businesses recover from the COVID-19 pandemic. The overall goal of the program was to encourage employers to retain employees during pandemic-related business shutdowns and slowdowns.
First introduced in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security Act, the ERC has been updated twice since its original creation. In November 2021, the ERC program expired early with the signing of the Infrastructure Investment and Jobs Act. The change limited ERC claims to wages paid before October 1, 2021, except for recovery startup businesses. Businesses were able to retroactively claim ERC by amending their 2020 or 2021 tax returns, meaning employers were able to claim the credit for actions during the pandemic on their tax returns up until the year 2024.
With the help of a third-party professional to assist in its submission, Route1 filed ERCs in the amount of USD $1,320,002. The credits were for Route1's wholly owned U.S. subsidiaries Route 1 Security Corporation, Group Mobile Int'l, LLC and Portable Computer Systems, Inc. relating to wages paid to employees between April 1, 2020 and September 30, 2021.
On June 18, 2025, Route1 sold USD $467,030 of its ERCs (the "First ERC Claim") to a private equity fund. Route1 received payment of USD $179,807 and subject to the US government paying out the First ERC Claim, will receive an additional USD $65,384. The private equity fund purchased the First ERC Claim at a discount to the face value and required an additional amount to be held back until the First ERC Claim is paid out by the US government. Route1 also incurred professional fees to complete the transaction. In certain circumstances, including situations in which the Internal Revenue Service disallows some or all of Route1's ERC claims, the private equity fund may cause Route1 to refund the proceeds paid. Should that occur, some or all of the professional fees incurred will also be reimbursed.
On August 8, 2025, Route1 sold USD $468,802 of its ERCs (the "Second ERC Claim Amount") to a private equity fund. Route1 received payment of USD $167,836 and subject to the US government paying out the ERC Claim Amount, will receive an additional USD $58,122. The private equity fund purchased the Second ERC Claim Amount at a discount to the face value and required an additional amount to be held back until the Second ERC Claim Amount is paid out by the US government. Route1 also incurred professional fees to complete the transaction.
Values in US dollars unless noted otherwise | Sep 30-25 | Dec 31-24 | ||
Funds Received | $ | 179,807 | $ | - |
L/T Receivable | 65,384 | - | ||
Costs and Professional Fees | 221,839 | - | ||
First ERC Claim | 467,030 | - | ||
Funds Received | 167,836 | - | ||
L/T Receivable | 58,122 | - | ||
Costs and Professional Fees | 242,844 | - | ||
Second ERC Claim | 468,802 | - | ||
Filed but unapproved claims | 122,101 | |||
Eliminated by the One Beautiful Bill Act | 262,069 | |||
Outstandings ERC Claims | 384,170 | - | ||
Total ERC Claims | $ | 1,320,002 | $ | - |
Total L/T Receivable Balance USD | $ | 123,506 | $ | - |
Total L/T Receivable Balance CAD | $ | 171,933 | $ | - |
On November 5, 2025 Route1 received notice that the IRS will be paying out USD $111,478 plus interest (the "IRS Payment") to Route1 on a portion of the Retained ERC Claims valued at USD $122,101 prior to the end of the current calendar year. Payment of $111,478 was received on November 14, 2025. The revised Retained Claims balance is USD $10,624. Route1 will incur professional fees as a result of the additional payment equal to 30% on the IRS Payment.
Route1 Inc. is an advanced North American technology company that empowers their clients with data-centric solutions necessary to drive greater profitability, improve operational efficiency and gain sustainable competitive advantages, while always emphasizing a strong cybersecurity and information assurance posture. Route1 delivers exceptional client outcomes through real-time secure delivery of actionable intelligence to decision makers. Route1 is listed in Canada on the TSX Venture Exchange under the symbol ROI. For more information, visit: www.route1.com.
For More Information, Contact:
Tony Busseri
President and Chief Executive Officer
+1 480 578-0287
[email protected]
This news release, required by applicable Canadian laws, does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
© 2025 Route1 Inc. All rights reserved. No part of this document may be reproduced, transmitted or otherwise used in whole or in part or by any means without prior written consent of Route1 Inc. See https://www.route1.com/terms-of-use/ for notice of Route1's intellectual property.
This news release may contain statements that are not current or historical factual statements that may constitute forward-looking statements or future oriented financial information. These statements are based on certain factors and assumptions, including expectations regarding the expected growth in the value of support contracts for the LPR business, price and liquidity of the common shares, competition for skilled personnel, expected financial performance and subscription-based revenue, business prospects, technological developments, development activities and like matters. While Route1 considers these factors and assumptions to be reasonable, based on information currently available, they may prove to be incorrect. These statements involve risks and uncertainties, including but not limited to the market demand for the Company's products and services and risk factors described in reporting documents filed by the Company. Actual results could differ materially from those projected as a result of these and other risks and should not be relied upon as a prediction of future events. The Company undertakes no obligation to update any forward-looking statement or future-oriented financial information to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, except as required by law. Estimates used in this presentation are from Company sources. Past or forecasted performance is not a guarantee of future performance and readers should not rely on historical results or forward-looking statements or future oriented financial information as an assurance of future results.
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SOURCE: Route1, Inc.
View the original press release on ACCESS Newswire
O.Martin--SMC
