Mr. Michael Kahn reports

EQ INC. REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS AND ANNUAL GENERAL MEETING RESULTS

EQ Inc. has released its financial results for the first quarter ended March 31, 2026.

Revenue for the first quarter of 2026 was $1.9-million, an increase of 31 per cent compared with the same period a year ago. This increase reflects continued client demand for EQ's artificial intelligence data-driven media solutions and the growing contribution of its proprietary ClearLake platform and its Integrated Rewards division. The company is encouraged by the continued momentum across its business units heading into the second quarter.

Gross margin for the quarter was 42 per cent, an improvement over both Q4 2025 and Q1 2025, reflecting the company's continued focus on higher margin, recurring revenue lines of business. The adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $400,000 was a 29-per-cent improvement over the same period a year ago, demonstrating the ongoing progress EQ is making toward its profitability objectives.

Quarterly operational highlights

The first quarter of 2026 demonstrated continued progress across all three of EQ's business units:

• Revenue of $1.9-million represents 31-per-cent growth over Q1 2025, driven by continued client demand across media, Integrated Rewards and ClearLake;
• Gross margin of 42 per cent improved over both Q4 2025 and Q1 2025, reflecting a disciplined focus on higher-margin business;
• Adjusted EBITDA loss of $438,000 represents a 29-per-cent improvement over Q1 2025, continuing the trend of improving operating performance established in 2025;
• Generated $882,000 in cash from operating activities, reflecting strong collections and disciplined working capital management;
• DSO (days sales outstanding) improved to 86 days from 93 days in Q4 2025, demonstrating improved collections efficiency.

"Q1 2026 reflects the continued execution of our strategy and the growing strength of our business," said Geoffrey Rotstein, president and chief executive officer of EQ Works. "A 31-per-cent increase in revenue over the same quarter last year, improved gross margins and a meaningful reduction in our adjusted EBITDA loss are all evidence that our focus on higher margin, recurring revenue lines of business is working. ClearLake continues to gain traction across multiple verticals, Integrated Rewards is growing its contribution and our team continues to execute with discipline. We are encouraged by the momentum heading into Q2 and remain confident in our trajectory for the remainder of 2026."

Subsequent events and AGM (annual general meeting) results

On May 1, 2026, the company announced the closing of a non-brokered private placement of 1,130 units of the company at a price of $1,000 per unit for aggregate gross proceeds of $1.13-million. In connection with the offering, the company paid a finder's fee to eligible arm's-length parties in respect of certain subscriptions. The final amount of the finder's fee for the offering consisted of cash commissions of $19,500 and the issuance of an aggregate of 19,500 finders' warrants. Each finder's warrant entitles the holder to purchase one common share at an exercise price of $1.00 per common share for a period of 12 months from the date of issuance.

On May 21, 2026, the company held its annual and special meeting. All resolutions presented at the meeting were passed and EQ re-elected its entire board of directors to a new term. The company thanks its shareholders for their continued support and confidence in EQ's strategic direction.

The attached table reconciles net loss from operations and adjusted EBITDA for the periods presented.

About EQ Inc. (EQ Works)

EQ Works enables organizations to understand, predict and influence customer behaviour through proprietary data, advanced analytics and artificial intelligence. The company's ClearLake SaaS (software-as-a-service) platform delivers AI-powered audience intelligence and data-driven insights, while its Integrated Rewards division and media solutions help businesses improve customer acquisition, engagement, and measurable business outcomes.

We seek Safe Harbor.