Mr. Michel Pepin reports

CISCOM IMPROVED ITS OPERATIONS AND INTRODUCED NEW CLIENT OFFERINGS

Ciscom Corp. has released it 2025 earnings and provided a positive business update heading into 2026, underscoring a strong revenue rebound, the launch of a new proprietary digital platform, leading to improved profitability.

Ciscom filed its audited consolidated financial statements and management's discussion and analysis (MD&A) for the year ended Dec. 31, 2025. The financial statements show the pressure Ciscom's revenues were under due to disruptions in the mail service and the bankruptcy of a significant client. The financial statements and the related MD&A are available on SEDAR+.

The Canada Post Corporation (CPC) labour dispute that started in the fall of 2024 disrupted business and sales overall as direct mail could not be distributed and clients cancelled campaigns. Consequently, the CPC labour dispute negatively impacted the company's sales and gross profit through 2025. CPC and its union have now reached a resolution and clients are resuming activities.

The company achieved sales of $20,759,000 in 2025, versus $35,018,000 in 2024, a decrease of $14,259,000 or 40.7 per cent. Gross profit for 2025 was $5,234,000 versus $6,822,000 in 2024, a reduction of $1,588,000 or 23.3 per cent. Gross margins improved year over year from 19.5 per cent in 2024 to 25.2 per cent in 2025.

Ciscom achieved a cash-based operating profit (EBITDA (earnings before interest, taxes, depreciation and amortization)) before one-time non-recurring charges of $1,339,000 in 2025. This performance is in part due to the effectiveness of Ciscom's cost reduction initiatives, which have saved over $400,000 annually across various operational areas.

For 2025, Ciscom reported a net loss of $791,000, versus $1,267,000 in 2024, an improvement of $476,000 or 37.6 per cent. The net income on a cash-basis was $451,000 in 2025, versus $147,000 in 2024, a year-over-year improvement of $304,000 or 207 per cent.

The company continues to carry significant non-cash expenses totalling $1,243,000 in 2025 (2024: $1,571,000), which include share-based compensation, intangible assets amortization and deferred charges. Nonetheless, Ciscom's operations generated positive cash flows of $4,296,000 in 2025 (2024: $1,236,000), a significant outcome considering the revenue challenges of 2025.

The company and its subsidiaries have diversified their operations by introducing three new offerings: Engage+, Mixography and Shopography. These digital and analytic offering supported by artificial intelligence (AI) development will mark the way forward for the business.

"Admittedly, 2025 was a difficult year. Yet, we repositioned and built the company to maintain and advance its premiere market positioning," reported Michel Pepin, president, chief executive officer and director of Ciscom. "Operations were further streamlined and we are introducing AI tools to accelerate our growth. Clients are very pleased with the new offerings and the continued performance of our data-driven analytics, omnichannel media and direct mail services."

"For Ciscom, 2025 was a year of significant multifaceted challenges," continued Mr. Pepin. "While we have a resilient business, external economic forces, including tariffs, have affected several businesses. As the economy stabilizes and adapts to its new reality, the company is focused on its core mandate. Ciscom continues to be in good standing with its banking partners, reflecting the company's rigorous financial management and governance standards. Looking ahead, Ciscom is poised for further growth, with a focus on new acquisitions, client-centric services and a commitment to operational excellence."

Non-IFRS (international financial reporting standards) measures

This news release contains non-IFRS financial measures, in particular, EBITDA, calculated as total operating income (loss), excluding depreciation and amortization, stock-based compensation, other non-cash expenses. The closest comparable IFRS measure is total operating income (loss). Such measures are standard practices for emerging companies with significant non-cash items as part of management disclosures.

The company believes that this measure provides investors with useful supplemental information about the financial performance of its business, enable comparison of financial results between periods where certain items may vary independent of business performance and allow for greater transparency with respect to key metrics used by management in operating its business. Although management believes this financial measure is important in evaluating the company's performance, it is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with IFRS.

For a full comparison of non-IFRS financial measures used herein to their nearest IFRS equivalents, please see the section on non-IFRS financial measures in the company's MD&A for the year ended Dec. 31, 2025.

About Ciscom Corp.

Ciscom actively invests in, acquires and manages market-leading companies within the information and communication technology (ICT) sector, with a specialty in adtech (advertising technology) and martech (marketing technology), targeting SMEs (small to medium-sized enterprises) with proven profitability. This approach allows entrepreneurs to monetize their equity and continue contributing, enhancing shareholder value through acquisitions. As a leader in omnimedia, particularly in data-driven marketing, Ciscom, through its subsidiaries, optimizes advertising spend across platforms, ensuring high ROI (return on investment) and customer engagement. Strategic ICT acquisitions bolster service offerings and shareholder value, marking Ciscom as an emergent force in the data-driven and technology market. Ciscom became an issuer in June, 2023, on the Canadian Securities Exchange and in October, 2023, on the OTCQB. Ciscom has two subsidiaries, namely Market Focus Direct and Prospect Media Group.

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