All esults a e show i Ca adia dolla s u less oted othe wise.
- Reve ue i c eased 2% seque tially to $2.437 millio f om $2.399 millio i Q2.
- G oss p ofit i c eased 11% seque tially to $1.202 millio ; g oss ma gi expa ded to 49% f om 45%.
- Ope ati g i come befo e othe i come a d expe se was $83,000, compa ed with a $128,000 loss i Q2.
- Adjusted EBITDA i c eased to $251,000 f om $43,000 i Q2 a d $220,000 i Q3 2025, a d ecu i g eve ue was up 48% seque tially to US$831,000, a d ecu i g g oss p ofit was up 45% to US$520,000. Adjusted EBITDA, ecu i g eve ue, ecu i g g oss p ofit, et debt a d adjusted wo ki g capital a e o -IFRS fi a cial measu es. They have o sta da dized mea i g u de IFRS a d may ot be compa able with othe issue s’ measu es.
- Ni e-mo th ope ati g cash flow i c eased to $602,000 f om $345,000 a yea ea lie .
- Net debt decli ed by $115,000 f om Ju e 30, 2026, while adjusted wo ki g capital imp oved by $236,000 ove the same pe iod. Net debt comp ises ba k i debted ess a d otes payable (i cludi g p omisso y otes), less cash, a d excludes lease liabilities, a d adjusted wo ki g capital excludes cu e t ba k i debted ess, otes payable, co t act liabilities a d lease liabilities.
“We a e shifti g Route1 f om a busi ess d ive by o e-time ha dwa e sales a d p ojects towa d ecu i g lice ses, suppo t a d ope atio al se vices. Lowe t a sactio al eve ue has educed total eve ue du i g that t a sitio , but ecu i g custome elatio ships a e co t ibuti g mo e eve ue a d g oss p ofit. I Q3, total eve ue g ew f om Q2, g oss p ofit i c eased mo e tha 10% a d we etu ed to positive ope ati g i come,” said To y Busse i, Chief Executive Office of Route1. “Ou p io ity is to build o these esults, co ve t mo e custome oppo tu ities i to ecu i g elatio ships a d co ti ue educi g debt.”
Compa ed with Q3 2025, Q3 2026 eve ue decli ed 18%, while g oss p ofit i c eased 2% a d subsc iptio eve ue a d se vices g ew 23%. Net loss was $23,000, compa ed with et i come of $253,000. The p io -yea qua te i cluded $309,000 of employee ete tio c edit (ERC) i come, Q3 2026 had o e. Fo eig excha ge moved f om a $22,000 gai to a $68,000 loss.
Adjusted EBITDA adds dep eciatio a d amo tizatio to epo ted ope ati g i come (loss); o othe adjustme ts apply. Ma ageme t uses it to assess ope ati g pe fo ma ce a d debt-se vice capacity. It is ot a substitute fo epo ted ope ati g i come, its closest IFRS measu e.
Amou ts i thousa ds of U.S. dolla s. The same defi itio s apply to all pe iods.
Reve ue ecog ized ove the se vice te m dec eased by US$20,000, f om US$337,000 i Q2 2026 to US$317,000 i Q3 2026, eflecti g the timi g of custome e ewals a d a o e-time eductio i eve ue of US$24,959 i August 2026.
Recu i g eve ue g ew 37% yea ove yea ; ecu i g g oss p ofit g ew 52%.
Recu i g eve ue i cludes co ti ui g softwa e, lice se, suppo t a d ope atio al-se vice eve ue, i cludi g qualifyi g Ge etec e ewals, u de epo ted g oss o et p ese tatio . MobiKEY a d o e-time activity a e excluded. Recu i g GP deducts associated di ect costs without double-cou ti g et supplie amou ts. Ma ageme t uses these histo ical measu es to assess ecu i g custome elatio ships; epo ted eve ue a d GP a e the closest IFRS measu es.
U.S.-dolla ecu i g measu es a e t a slated usi g the excha ge ates applied i co solidatio . Excluded activity i cludes MobiKEY, o – ecu i g ope atio s a d applicable co solidatio adjustme ts.
Ma ageme t uses et debt to assess bo owi g obligatio s afte available cash. Lease liabilities a e excluded.
Ma ageme t uses adjusted wo ki g capital to assess the wo ki g-capital positio excludi g cu e t bo owi g obligatio s, co t act liabilities a d lease liabilities.
Route1’s a ual ge e al a d special meeti g will be held o Novembe 10, 2026 at 10:00 a.m. Easte Sta da d Time at Faske Ma ti eau DuMouli LLP, Suite 2400, 333 Bay St eet, To o to, O ta io. Meeti g mate ials a e available at www.e visio epo ts.com/PSEQ2026 a d o SEDAR+.
Route1 I c. is a No th Ame ica tech ology compa y focused o pa ki g ope atio s, public safety a d mobility. Th ough its tech ology, se vices a d ecu i g ope atio al-suppo t offe i gs, Route1 helps custome s deploy, ope ate a d optimize automated lice se plate ecog itio , pa ki g a d mobility tech ologies.
Route1’s offe i gs i clude Ge etec AutoVu-based ALPR solutio s, Comp ehe sive+ lifecycle a d ope atio al suppo t, Route1 ABI pa ki g a alytics a d busi ess i tellige ce, a d elated tech ology a d p ofessio al se vices.
Additio al i fo matio about Route1 is available u de the Compa y’s p ofile o SEDAR+.
To y Busse iP eside t a d Chief Executive Office +1 480 578-0287to y.busse i@ oute1.com
This ews elease co tai s stateme ts that a e ot cu e t o histo ical factual stateme ts a d that may co stitute fo wa d-looki g stateme ts o futu e-o ie ted fi a cial i fo matio withi the mea i g of applicable Ca adia secu ities laws.
Fo wa d-looki g stateme ts i this ews elease i clude, amo g othe thi gs, stateme ts ega di g expected Q4 2026 eve ue g owth a d EBITDA imp oveme t; the Compa y’s ability to g ow ecu i g eve ue; the co ve sio of busi ess-developme t oppo tu ities i to pu chase o de s, deployme ts a d ecu i g- eve ue elatio ships; the timi g a d completio of custome p ocu eme t p ocesses; the expected impact of legal, legislative, p ivacy a d cybe secu ity developme ts o custome dema d, p ocu eme t timi g, sales cycles a d ma ket oppo tu ities; ma ageme t’s belief that the ALPR ma ket is u de goi g st uctu al cha ge a d that this cha ge may c eate medium-te m eplaceme t, mode izatio a d gove a ce-d ive oppo tu ities fo the Compa y; the Compa y’s ability to sustai a d expa d its shift towa d highe -quality ecu i g eve ue; the Compa y’s ability to expa d Comp ehe sive+, Route1 ABI a d lifecycle-suppo t elatio ships; the developme t a d comme cializatio of Route1 ABI capabilities; debt eductio ; the st e gthe i g of the Compa y’s fi a cial positio ; the Compa y’s ope ati g p io ities a d expectatio s fo the emai de of 2026; the impleme tatio of the ame ded Lo g-Te m I ce tive Pla , the eceipt of accepta ce of such ame dme t f om the TSX Ve tu e Excha ge, a d the app oval of the Lo g-Te m I ce tive Pla by sha eholde s; a d like matte s.
These stateme ts a e based o ce tai facto s a d assumptio s, i cludi g ma ageme t’s cu e t expectatio s ega di g custome dema d, p ocu eme t timi g, pu chase-o de co ve sio , deployme t schedules, ecu i g- eve ue g owth, g oss ma gi s, ope ati g expe ses, busi ess-developme t activity, tech ology developme t, custome ete tio , the Compa y’s ability to execute its comme cial st ategy, the co ti uatio of the Compa y’s ece t shift i eve ue mix towa d ecu i g, highe -ma gi suppo t a d ope atio al se vices at a simila pace to ece t pe iods, ma ageme t’s cu e t expectatio s ega di g the pace a d di ectio of egulato y, legislative, p ivacy a d cybe secu ity developme ts affecti g the ALPR ma ket, the impleme tatio of the ame ded Lo g-Te m I ce tive Pla , the eceipt of accepta ce of such ame dme t f om the TSX Ve tu e Excha ge, a d the app oval of the Lo g-Te m I ce tive Pla by sha eholde s, a d othe facto s co side ed easo able by ma ageme t based o i fo matio cu e tly available.
Fo wa d-looki g stateme ts i volve isks a d u ce tai ties that may cause actual esults to diffe mate ially f om those exp essed o implied by such stateme ts. These isks a d u ce tai ties i clude, but a e ot limited to, ma ket dema d fo the Compa y’s p oducts a d se vices; the timi g a d outcome of custome p ocu eme t a d app oval p ocesses; delays i pu chase o de s, deployme ts o impleme tatio ; the ability to co ve t busi ess-developme t oppo tu ities i to eve ue; the timi g a d mix of device, p oject a d ecu i g eve ue; custome co ce t atio ; tech ology-developme t a d impleme tatio isks; competitive co ditio s; the isk that a ticipated ma ket, egulato y o gove a ce-d ive oppo tu ities i the ALPR secto do ot mate ialize as expected, develop o a diffe e t timeli e tha a ticipated, o a e captu ed by competito s athe tha the Compa y; the isk that the Compa y is u able to sustai o expa d the pace of its shift towa d ecu i g, highe -ma gi eve ue; wo ki g-capital equi eme ts; access to capital; the Compa y’s ability to educe debt a d imp ove p ofitability a d cash ge e atio ; cha ges i laws, egulatio s o custome policies affecti g ALPR a d elated tech ologies; the ability o i ability to obtai , i a timely ma e o at all, all ecessa y egulato y a d sha eholde app ovals equi ed to impleme t a d mai tai the Lo g-Te m I ce tive Pla ; a d the othe isks desc ibed i the Compa y’s co ti uous disclosu e fili gs available o SEDAR+.
Although Route1 believes that the expectatio s eflected i such fo wa d-looki g stateme ts a e easo able, o assu a ce ca be give that these expectatio s will p ove to be co ect. Reade s should ot place u due elia ce o fo wa d-looki g stateme ts.
Fo wa d-looki g stateme ts co tai ed i this ews elease a e made as of the date he eof. Except as equi ed by applicable secu ities laws, Route1 u de takes o obligatio to update o evise a y fo wa d-looki g stateme ts to eflect subseque t eve ts o ci cumsta ces.
Neithe the TSX Ve tu e Excha ge o its Regulatio Se vices P ovide (as that te m is defi ed i policies of the TSX Ve tu e Excha ge) accepts espo sibility fo the adequacy o accu acy of this elease.
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