Adcore Reports Second Quarter 2025 Results

Improved Gross Margins, Positive Adjusted EBITDA, and Robust APAC Growth

(All figures in CAD unless otherwise stated)

TORONTO, ONTARIO – August 13, 2025 – Adcore Inc. (the “Company” or “Adcore”) (TSX:ADCO) (OTCQX:ADCOF) (FSE:ADQ), a global leader in marketing technology empowering businesses to maximize their digital marketing potential with its innovative AI-powered platform (“Marketing Cloud”), today announced its financial results for the three months ended June 30, 2025.

Omri Brill, Adcore CEO and Founder commented, “In Q2, we saw meaningful improvements in gross margin, Adjusted EBITDA, and the cash balance compared to the prior year’s Q2 – all trending in the right direction. This is a testament to Adcore’s continued efforts and focus on improving operational efficiency. The work leading up to today has positioned us for success in the second half of the year, where we anticipate expanding budgets and elevated activity.”

Mr. Brill continued: “As we look to the second half of the year, we are more energized than ever. Our newest app, Proposaly – now in its BETA stage — is already proving its potential to transform how businesses manage and close deals by streamlining and optimizing sales workflows. With powerful new features such as our new payment request document type, AI-powered proposal creation, and advanced enterprise-grade user access management, Proposaly is expanding its use cases and delivering more value to our clients.”

Mr Brill concluded, “At the same time, the AI revolution is driving a step-change in our own operational efficiency, allowing us to deliver better results faster and at scale. These innovations, combined with our sharpened focus and growing momentum, position Adcore to capture new opportunities and accelerate growth in the months ahead.”

Second Quarter Highlights:

Revenue for the three months ended June 30, 2025, was CAD$6.5 million compared to CAD$6.6 million for the three months ended June 30, 2024, a 1% decrease.

Gross profit for the three months ended June 30, 2025, was CAD$3.1 million compared to CAD$2.9 million for the three months ended June 30, 2024, a 6% increase.

Gross margin for the three months ended June 30, 2025, was 47% compared to 44% for the three months ended June 30, 2024.

Adjusted EBITDA for the three months ended June 30, 2025 was CAD$156 thousand compared to a negative Adjusted EBITDA of CAD$173 thousand for the three months ended June 30, 2024.

APAC revenue for the three months ended June 30, 2025, was CAD$3.6 million compared to CAD$2.7 million for the three months ended June 30, 2024, a 35% increase.

Cash and cash equivalents as of June 30, 2025, were CAD$9.0 million compared to CAD$7.3 million as of June 30, 2024, a 23% increase.

Working Capital for the six months ended June 30, 2025 was CAD$6.3 million compared to CAD$7.3 million as of December 31, 2024.

CONFERENCE CALL AND WEBCAST INFORMATION
Adcore will host a webcast and conference call to discuss those results on Wednesday August 13, 2025, at 10:00 a.m. ET.

To register for the conference call/webcast please click here or visit: https://investors.adcore.com/Q22025.

The conference call will include a brief statement by management and will focus on answering questions about Adcore’s results. Questions regarding results can be sent in advance to [email protected].

USE OF NON-IFRS MEASURES
Management uses Adjusted earnings before interest, income taxes, depreciation, and amortization (“Adjusted EBITDA”) as a key financial metric to evaluate Adcore’s operating performance and for planning and forecasting future business operations. Adjusted EBITDA excludes significant items that are non-operating in nature in order to evaluate Adcore’s core operating performance against prior periods. Adjusted EBITDA is not a measure of financial performance under GAAP and should be considered in addition to, and not as a substitute for net earnings, overall change in cash or liquidity of the business as a whole. Management believes the use of Adjusted EBITDA allows investors and analysts to understand the results of the continuing operations of the Company.

ADCORE INC.

ADJUSTED EBITDA

(Express in CAD Thousands)

	Three Months Ended
	June 30, 2025	June 30, 2024
Operating (loss) profit	(466)	(779)
Depreciation and amortization	354	380
Share-based payments	65	16
Other non-recurring items	203	210
Total Adjustments	622	606
Adjusted EBITDA	156	(173)

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Express in CAD Thousands)

	Three Months Ended
	June 30, 2025	June 30, 2024
Revenue	6,532	6,592
Cost of revenues	3,456	3,679
Gross profit	3,076	2,913
Research and development, net	513	579
Selling, general and administrative expenses	3,030	3,113
Operating loss	(466)	(779)
Finance expense	99	169
Finance income	(141)	(31)
Taxes on income	–	(226)
Net loss	(425)	(691)


Basic loss per share attributable to shareholders	0.010	0.011
Diluted loss per share attributable to shareholders	0.010	0.011

ADCORE INC.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Expressed in CAD Thousands)

	June 30, 2025	December 31, 2024
CURRENT ASSETS:
Cash and cash equivalents	9,001	10,803
Trade accounts receivable, net	3,688	6,561
Other accounts receivable	372	624

Total current assets	13,062	17,988




NON-CURRENT ASSETS:
NON-CURRENT ASSETS:
Property, plant and equipment, net	1,144	1,306
Property, plant and equipment, net	1,144	1,306
Intangible assets, net	4,004	4,137
Total non-current assets	5,148	5,443


Total assets	18,210	23,431


CURRENT LIABILITIES:
CURRENT LIABILITIES:
Trade accounts payable	4,219	8,156
Other accounts payable	2,376	2,355
Lease liability	204	200
Total current liabilities	6,799	10,711


NON-CURRENT LIABILITIES:
NON-CURRENT LIABILITIES:
Accrued severance pay, net	10	10
Deferred tax liability, net	–	–
Lease liability	551	670
Lease liability	551	670	Total non-current liabilities	561	680


SHAREHOLDERS’ EQUITY:
SHAREHOLDERS’ EQUITY:
Share capital	11,126	11,760
Additional paid in capital	3,864	4,018
Treasury stocks	(1,043)	(1,043)
Actuarial reserve	(102)	(102)
Actuarial reserve	(102)	(102)
Retained earnings	(2,995)	(2,593)
Retained earnings	(2,995)	(2,593)	Total Equity	10,850	12,040

TOTAL LIABILITIES AND EQUITY	18,210	23,431

ABOUT ADCORE

Adcore is a leading AI-powered marketing technology company.

By combining extensive industry knowledge and experience with its proprietary artificial intelligence (AI) powered technology, Adcore offers a unique digital marketing solution that empowers entrepreneurs and advertisers by managing and automating their e-commerce store advertising and monitoring and analyzing the performance of their advertising budget to ensure maximum Return on Investment. Adcore is a certified Google Premier Partner, Elite Tier Microsoft Partner, Facebook Partner, Verified Amazon Partner, and TikTok Partner.

Established in 2006, the Company employs over fifty people in its headquarters in Tel Aviv, Israel and satellite offices in Toronto, Canada, Melbourne, Australia, Hong Kong and Shanghai, China.

For more information about Adcore, please visit https://www.adcore.com/investors/, https://www.adcore.com/blog or follow us on LinkedIn.

FORWARD-LOOKING STATEMENTS

This press release contains or may contain certain forward-looking statements, including statements about the Company. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof.

Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. 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 new events or circumstances, except as required by law.

For further information please contact:

ADCORE INC.

https://www.adcore.com/investors/

Investor Relations
Nick Campbell, CFA

Telephone: 905-630-0148
Email: [email protected]

Chief Partnership Officer
Martijn van den Bemd

Telephone: 647-497-5337
Email: [email protected]