First Quarter Revenue Reaches $35.0 Million
Exchange Service Revenue Up 45% YoY
Managed Service Revenue Up 7% YoY
(All monetary figures are expressed in Canadian dollars unless otherwise stated)
TORONTO, May 08, 2026 (GLOBE NEWSWIRE) — illumin Holdings Inc. (TSX: ILLM and OTCQB: ILLMF) (“illumin” or the “Company”), the advertising technology platform that enables you to win your next customer, today announced its financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Highlights
- First quarter revenue rose 20% to $35.0 million from $29.1 million in the prior year, driven by higher Exchange service revenue and Managed service revenue.
- Self service revenue was $8.4 million, down slightly by 1% compared with the year ago period, and represented 24% of total revenue while adding 7 net new clients in the quarter.
- Managed service revenue was up by 7% to $9.3 million in the quarter.
- Exchange service revenue increased by 45% from the prior year to $17.4 million, continuing on its strong demand from new and existing customers, an enhanced supplier network, and platform improvements.
- Gross margin was 35% compared to 44% for the same period in 2025, reflecting the change in mix to service lines with lower margins, such as Exchange service.
- Net revenue or gross profit (revenue less media-related costs) was $12.4 million, down slightly by 4% compared with $12.9 million in the prior year period.
- Adjusted EBITDA loss was $2.0 million, compared to $0.4 million in the prior year period, primarily attributable to lower gross profit due to lower margins and higher operating costs.
- Net loss was $3.2 million, compared to $1.9 million in Q1 2025. The increase in net loss was primarily a result of the lower Adjusted EBITDA, partially offset by a higher foreign exchange gain.
- On December 31, 2025, the Company commenced a normal course issuer bid (“NCIB”) to purchase for cancellation up to 3,858,045 of its outstanding common shares. Under this NCIB, daily purchases are limited to 25,279 common shares. The NCIB may continue to December 30, 2026 or such earlier time as the NCIB is completed or terminated at the option of the Company. During the three months ended March 31, 2026, under this NCIB, the Company purchased and cancelled 686,558 of its outstanding common shares at an average price of $0.85 per share totaling approximately $0.6 million.
- Cash and cash equivalents was $37.5 million as at March 31, 2026.
Tal Hayek, illumin’s Chief Executive Officer, commented:
“Our first quarter reflected a shift in our revenue mix, with revenue up 20% year-over-year to $35.0 million, driven by strong growth in Exchange, which increased 45%. At the same time, parts of our DSP business were softer, and the shift in product mix lowered our overall gross margin. This put pressure on cash flow and made it clear where we need to do better, particularly in how we balance growth with profitability. The DSP business continued to grow, though at a pace below our targets. This is an area where we see clear opportunity to improve execution.
Since returning as CEO, I’ve oriented the organization around three non-negotiable outcomes:
- Grow DSP revenues with a much greater emphasis on CTV
- Expand gross margins by exiting low-margin transactions and improving the quality of our revenue mix
- Reduce SG&A to accelerate profitability.”
Michael Amaro, illumin’s Interim Chief Financial Officer, commented:
“The first quarter reflects continued progress in executing our growth strategy, particularly in expanding demand within Exchange service. While we continue to invest in key areas to support long-term growth, maintaining operational discipline remains a priority as we continue our journey back to profitability.”
The following table presents a reconciliation of net loss to Adjusted EBITDA for the periods ended:
| Three months ended | ||||||||
| March 31, | March 31, | |||||||
| 2026 | 2025 | |||||||
| Net loss for the period | $ | (3,194 | ) | $ | (1,854 | ) | ||
| Adjustments: | ||||||||
| Finance income, net | (335 | ) | (337 | ) | ||||
| Foreign exchange gain | (940 | ) | (311 | ) | ||||
| Depreciation and amortization | 1,620 | 1,382 | ||||||
| Income tax expense (benefit) | 252 | (63 | ) | |||||
| Share-based compensation | 531 | 737 | ||||||
| Severance expenses | 35 | 34 | ||||||
| Other non-recurring expenses | 77 | 1 | ||||||
| Total adjustments | 1,242 | 1,443 | ||||||
| Adjusted EBITDA | $ | (1,952 | ) | $ | (411 | ) | ||
Conference Call Details
Date: Friday, May 8, 2026
Time: 8:30 AM Eastern Time
To register for the webcast and presentation, please visit:
https://events.illumin.com/q1-2026-earnings-call
Please connect 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast. A recording of the conference call webcast will be available after the call by visiting the Company’s website at https://illumin.com/investor-information/.
Non-IFRS Measures
This press release makes reference to certain non-IFRS Accounting Standard measures (“non-IFRS measures”). These measures are not recognized measures under IFRS Accounting Standards (“IFRS”), do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures including “revenue less media-related costs”, “Gross margin”, and “Adjusted EBITDA” (as well as other measures discussed elsewhere in this press release).
The term “Gross margin” refers to the amount that “revenue less media-related costs” represents as a percentage of total revenue for a given period. Gross margin is used for internal management purposes as an indicator of the performance of the Company’s solution in balancing the goals of delivering excellent results to advertisers while meeting the Company’s margin objectives and, accordingly, the Company believes it is useful supplemental information. “Adjusted EBITDA” refers to net income (loss) after adjusting for finance costs (income), impairment loss, fair value gain, income taxes, foreign exchange loss (gain), depreciation and amortization, share-based compensation, acquisition and related integration costs, severance expenses, adjustments to the carrying value of investment tax credits receivable, and other non-recurring items. The Company believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company’s main business activities before taking into consideration how those activities are financed and taxed and prior to taking into consideration depreciation of property and equipment and certain other items listed above. It is a key measure used by the Company’s management and board of directors to understand and evaluate the Company’s operating performance, to prepare annual budgets and to help develop operating plans.
These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. We believe that securities analysts, investors, and other interested parties frequently use non-IFRS measures in the evaluation of issuers, and that these non-IFRS measures are relevant to their analysis of the Company.
About illumin:
illumin is a strategic advertising platform built to help marketers see more and act faster across the open web. By reducing fragmentation and keeping campaigns connected, illumin helps brands and agencies get more from every campaign. Headquartered in Toronto, Canada, illumin serves clients across North America, Latin America, and Europe. For more information, visit http://www.illumin.com.
See More. Achieve More.
Disclaimer with regard to forward looking statements
Certain statements included herein constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, the Company does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.
For further information, please contact:
Michael Amaro
Interim Chief Financial Officer
illumin Holdings Inc.
416-218-9888 (x5414)
investors@illumin.com
Please note that the following financial information is an extract from the Company’s unaudited condensed interim consolidated financial statements for the three months ended March 31, 2026 and 2025 (the “Financial Statements”) provided for readers’ convenience and should be viewed in conjunction with the Notes to the Financial Statements, which are an integral part of the statements. The full Financial Statements and MD&A for the period may be found by accessing SEDAR+ at http://www.sedarplus.ca.
| illumin Holdings Inc. Condensed Interim Statements of Financial Position For the three months ended March 31, 2026 and 2025 (Unaudited; in thousands of Canadian dollars) | ||||||
| March 31, 2026 | December 31, 2025 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 37,497 | $ | 43,820 | ||
| Accounts receivable | 30,487 | 36,094 | ||||
| Income tax receivable | 501 | 463 | ||||
| Prepaid expenses and other | 2,482 | 2,186 | ||||
| 70,967 | 82,563 | |||||
| Non-current assets | ||||||
| Other assets | 72 | 113 | ||||
| Property and equipment | 7,976 | 7,835 | ||||
| Intangible assets | 15,690 | 14,766 | ||||
| Goodwill | 4,870 | 4,870 | ||||
| 99,575 | 110,147 | |||||
| Liabilities | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | 32,082 | 39,154 | ||||
| Income tax payable | 216 | 274 | ||||
| Lease obligations | 612 | 598 | ||||
| 32,910 | 40,026 | |||||
| Non-current liabilities | ||||||
| Lease obligations | 3,924 | 4,072 | ||||
| 36,834 | 44,098 | |||||
| Shareholders’ equity | 62,741 | 66,049 | ||||
| 99,575 | 110,147 | |||||
| illumin Holdings Inc. Condensed Interim Statements of Comprehensive Loss For the three months ended March 31, 2026 and 2025 (Unaudited; in thousands of Canadian dollars) | ||||||||
| 2026 | 2025 | |||||||
| Revenue | $ | 35,015 | $ | 29,081 | ||||
| Media-related costs | 22,611 | 16,141 | ||||||
| Gross profit | 12,404 | 12,940 | ||||||
| Operating expenses | ||||||||
| Sales and marketing | 7,386 | 7,348 | ||||||
| Technology | 3,984 | 4,132 | ||||||
| General and administrative | 3,100 | 1,906 | ||||||
| Share-based compensation | 531 | 737 | ||||||
| Depreciation and amortization | 1,620 | 1,382 | ||||||
| 16,621 | 15,505 | |||||||
| Loss from operations | (4,217 | ) | (2,565 | ) | ||||
| Finance income, net | (335 | ) | (337 | ) | ||||
| Foreign exchange gain | (940 | ) | (311 | ) | ||||
| (1,275 | ) | (648 | ) | |||||
| Net loss before income taxes | (2,942 | ) | (1,917 | ) | ||||
| Income tax expense (benefit) | 252 | (63 | ) | |||||
| Net loss for the period | (3,194 | ) | (1,854 | ) | ||||
| Basic and diluted net loss per share | (0.06 | ) | (0.04 | ) | ||||
| Other Comprehensive Loss | ||||||||
| Items that may be subsequently reclassified to net loss: | ||||||||
| Exchange loss on translating foreign operations | (64 | ) | (389 | ) | ||||
| Comprehensive loss for the period | (3,258 | ) | (2,243 | ) | ||||
| illumin Holdings Inc. Condensed Interim Statements of Cash Flow For the three months ended March 31, 2026 and 2025 (Unaudited; in thousands of Canadian dollars) | ||||||||
| 2026 | 2025 | |||||||
| Cash provided by (used in) | ||||||||
| Operating activities | ||||||||
| Net loss for the period | $ | (3,194 | ) | $ | (1,854 | ) | ||
| Adjustments to reconcile net loss to net cash flows | ||||||||
| Depreciation and amortization | 1,620 | 1,382 | ||||||
| Finance income, net | (335 | ) | (337 | ) | ||||
| Share-based compensation | 531 | 737 | ||||||
| Foreign exchange gain | (940 | ) | (311 | ) | ||||
| Unpaid severance expense | – | 34 | ||||||
| Income tax expense (benefit) | 252 | (63 | ) | |||||
| Change in non-cash operating working capital | ||||||||
| Accounts receivable | 4,443 | 16,769 | ||||||
| Prepaid expenses and other | 216 | (522 | ) | |||||
| Other assets | 42 | – | ||||||
| Accounts payable and accrued liabilities | (6,196 | ) | (14,759 | ) | ||||
| Income taxes paid, net | (309 | ) | (349 | ) | ||||
| Interest received, net | 437 | 363 | ||||||
| (3,433 | ) | 1,090 | ||||||
| Investing activities | ||||||||
| Additions to property and equipment | (453 | ) | (47 | ) | ||||
| Additions to intangible assets | (2,091 | ) | (2,465 | ) | ||||
| (2,544 | ) | (2,512 | ) | |||||
| Financing activities | ||||||||
| Repayment of international loans | – | (33 | ) | |||||
| Payment of leases | (222 | ) | (533 | ) | ||||
| Repurchase of common shares for cancellation | (581 | ) | – | |||||
| Proceeds from the exercise of stock options | – | 138 | ||||||
| (803 | ) | (428 | ) | |||||
| Decrease in cash and cash equivalents | (6,780 | ) | (1,850 | ) | ||||
| Impact of foreign exchange on cash and cash equivalents | 457 | (89 | ) | |||||
| Cash and cash equivalents – beginning of period | 43,820 | 55,952 | ||||||
| Cash and cash equivalents – end of period | 37,497 | 54,013 | ||||||
| Supplemental disclosure of non-cash transactions | ||||||||
| Unpaid additions to property and equipment, net | 141 | 313 | ||||||
