Adcore reports Q2 2026: gross margin 51%, revenue up 10% to CAD$7.2M, North America +27% to CAD$1.5M

Adcore Reports Q2 2026 Results: Gross Margin Expands to 51% as Revenue Grows 10% to CAD$7.2 million and North America Rebounds 27% to CAD$1.5 million

(All figures in CAD unless otherwise stated)

TORONTO, ON / ACCESS Newswire / August 13, 2026 / Adcore Inc. ("Adcore" or the "Company") (TSX:ADCO)(OTCQX:ADCOF)(FSE:ADQ), a global marketing-technology company operating an AI-powered Marketing Cloud, today announced financial results for the three months ended June 30, 2026.

Omri Brill, CEO and Founder of Adcore, commented: "Q2 capped a very strong first half. In H1, revenue rose 16% to CAD$15.7 million and gross profit climbed 10% to CAD$6.8 million. For Q2, revenue increased 10% to CAD$7.2 million, accompanied by a 19% gain in gross profit - nearly double the pace of revenue - and gross margin expanded to 51% from 47% a year ago. North America, which softened through 2025, rebounded 27%, EMEA grew 12%, and APAC continued to perform. Just as importantly, we delivered this growth while remaining Adjusted EBITDA positive. This is exactly the profile we want: growing top line, with quality of growth improving underneath it."

Mr. Brill continued: "The sequential decline in cash and working capital is to some extent seasonal, driven by our managed-media model: a large portion of fourth-quarter holiday campaign spend is collected in Q4 and paid out to media platforms during the first half - you can see it plainly in trade payables, which declined from CAD$8.4 million to CAD$4.1 million over the same period. We are now entering the second half, traditionally our strongest, and we expect our cash position and working capital to recover and improve as this cycle reverses. In parallel, we are launching a global efficiency plan targeting a 15%-20% reduction in operating expenses, which will flow directly to operating profit and cash generation."

Mr. Brill added: "On the product side, this was the quarter our AI agent strategy moved from roadmap to reality. In April we made a public commitment: three autonomous agents by end of Q2. We built and shipped five - four on Proposaly, now covering the complete lead-to-revenue cycle from first conversation to signed proposal, collected payment, and onboarded customer, and a fifth on AI Studio, the Creative Agent, which is autonomously producing banners, images, and videos and showing remarkable improvement and strong traction with early users. The sixth agent, our Media Buying Agent on Total Eclipse, remains on track for Q3. Six agents doing the work of an entire marketing and sales team - that is a promising growth engine, and we are building it while keeping the core business profitable at the adjusted EBITDA line. That is the direction of this company: fully agentic, improving margins, and a leaner cost base entering our strongest half."

Second Quarter 2026 Detailed Highlights

• Revenue for the three months ended June 30, 2026, was CAD$7.2 million compared to CAD$6.5 million for the three months ended June 30, 2025, a 10% increase.

• Gross profit for the three months ended June 30, 2026, was CAD$3.7 million compared to CAD$3.1 million for the three months ended June 30, 2025, a 19% increase.

• Gross margin for the three months ended June 30, 2026, was 51% compared to 47% for the three months ended June 30, 2025.

• Adjusted EBITDA for the three months ended June 30, 2026 was positive CAD$42 thousand compared to CAD$156 thousand for the three months ended June 30, 2025.

• North America revenue for the three months ended June 30, 2026, was CAD$1.5 million compared to CAD$1.2 million for the three months ended June 30, 2025, a 27% increase.

• EMEA revenue for the three months ended June 30, 2026, was CAD$2 million compared to CAD$1.8 million for the three months ended June 30, 2025, a 12% increase.

• Working Capital for the three months ended June 30, 2026 was CAD$3.1 million compared to CAD$5.1 million as of December 31, 2025.

• Net cash used by operating activities for the three months ended June 30, 2026, amounted to CAD$460 thousand, compared to CAD$713 thousand for the three months ended June 30, 2025.

CONFERENCE CALL AND WEBCAST INFORMATION

Adcore will host a webcast and conference call to discuss those results on Thursday August 13, 2026, at 10:00 a.m. ET.

To register for the conference call/webcast please click here or visit: https://investors.adcore.com/Q2-26.

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 invest@adcore.com.

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, 2026			June 30, 2025
Operating (loss) profit			(570	)			(466	)
Depreciation and amortization			417				354
Share-based payments			6				65
Other non-recurring items			189				203
Total Adjustments			612				622
Adjusted EBITDA			42				156

ADCORE INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Express in CAD Thousands)

		Three Months Ended
		June 30, 2026			June 30, 2025
Revenue			7,201				6,532
Cost of revenues			3,529				3,456
Gross profit			3,672				3,076
Research and development, net			558				513
Selling, general and administrative expenses			3,684				3,030
Operating loss			(570	)			(466	)
Finance expense			265				99
Finance income			(35	)			(141	)
Taxes on income

ADCORE INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed in CAD Thousands)

		June 30, 2026			December 31, 2025
CURRENT ASSETS:
Cash and cash equivalents			4,029				10,281
Trade accounts receivable, net			5,399				5,215
Other accounts receivable			453				413
Total current assets			9,881				15,909
NON-CURRENT ASSETS:
Property, plant and equipment, net			1,008				1,055
Intangible assets, net			5,323				4,622

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/

Zehavit Dan
General Counsel & Corporate Secretary
Telephone: +972-3-566-3444
Email: zehavit@adcore.com

Martijn van den Bemd
Chief Partnerships Officer
Telephone: 647-497-5337
Email: martijn@adcore.com

SOURCE: Adcore Inc.

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