Adcore Announces Company-Wide Restructuring, Ends Q3 with Higher Cash and Targets Return to Operating Profit in Q4 2026

Capital allocation

Adcore will prioritize the profitability and cash generation of its operating business, fund the growth of its AI products through external capital rather than the Company’s own balance sheet, and hopes to return surplus capital to shareholders once working capital has been rebuilt. Management intends to present a capital allocation framework and a dividend policy once sustained profitability is evident in reported results. Adcore was a profitable, dividend-paying business before its 2019 listing; the Company’s stated intention is to return to that footing.

AI product portfolio

Adcore continues to develop its AI product lines – Proposaly, its agentic quote-to-cash platform; AI Studio, its generative creative engine with live distribution partnerships; and Total Eclipse, its agentic media-buying platform – and has initiated a review of strategic alternatives for the portfolio, including external funding at the product level, partnerships and divestiture. Our objective is to unlock value for shareholders from assets that the Company believes are not currently reflected in its market capitalization, while removing growth investment from Adcore’s reported operating results. No transactions have been agreed to in furtherance of this objective; the Company will update the market if and when any transaction is concluded.

Management commentary

“For seven years as a public company we invested in building Adcore into a global, multi-product company – new offices, new products, a bigger team. That was the right strategy for that stage, and it gave us the platform, the client base and the AI products we have today. Underneath it, all along, was a profitable and growing operating business carrying a cost structure built for a much larger operation,” said Omri Brill, Chief Executive Officer of Adcore. “In September, we made the decision to stop funding AI development from the operating business and to refocus on our core operation, which has always been profitable. We reduced headcount by approximately 25%, reduced management compensation by 20%-35% and halved our supplier spend – and we did it while revenue continued to grow and cash increased. We are also our own best case study: with AI handling work that previously required headcount, we run this business today with fewer people and lower costs than a year ago, while serving our clients at least as well. Q4 will be the first quarter that reflects what this company earns at the right cost base. From there, the plan is straightforward: return capital to shareholders as results allow, and bring in external investment for our AI products – unlocking value the market currently attributes little to.”