Renoworks Announces Second Quarter 2026 Financial Results

Q2 Recurring Revenue Increases 38% Year-Over-Year and Gross Margin of 80% as Company Advances Transition to Higher-Margin Software Revenue

CALGARY, AB, Aug. 27, 2026 /CNW/ -- Renoworks Software Inc. (TSXV: RW) | (OTC: ROWKF) ("Renoworks" or the "Company"), a leading provider of digital visualization, product intelligence and lead generation technology for the home renovation and new construction industry, today announced its financial results for the second quarter and six months ended June 30, 2026. The financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR+. Unless otherwise stated, all dollar amounts are Canadian dollars.

Financial highlights for the six months ended June 30, 2026, with comparatives for the same period in 2025, are as follows:

• Revenue of $3,635,030, a 9.5% decrease from $4,012,815 in the prior-year period. The decrease was primarily attributable to an expected 80% decline in design services revenue, partially offset by strong growth in higher-margin recurring licensing revenue.
• Recurring revenue of $2,411,096, compared with $1,761,011 in the same period in 2025, an increase of 37%.
• Gross margin increased to 80%, compared with 76% in the same period in 2025, reflecting a greater proportion of revenue from higher-margin licensing.
• Deferred revenue was $2,164,087 at June 30, 2026, compared with $2,436,650 at December 31, 2025.
• Net loss was $240,745, compared with net income of $92,829 for the same period in 2025.
• Cash at June 30, 2026 was $1,273,789, compared with $1,444,728 at December 31, 2025.
• Working capital at June 30, 2026 was positive $21,019, compared with positive working capital of $459,164 at December 31, 2025. Excluding deferred revenue, a significant non-cash item included in working capital, working capital was positive $1,968,584 at June 30, 2026, compared with $2,381,953 at December 31, 2025.
• As at June 30, 2026, the Company had 40,934,634 common shares issued and outstanding.

Financial highlights for the three months ended June 30, 2026, with comparatives for the same period in 2025, are as follows:

• Quarterly revenue of $1,798,147, compared with $2,164,834 in the second quarter of 2025.
• Recurring revenue of $1,217,405, compared with $881,284 in the same period in 2025, an increase of 38%.
• Gross margin was 80%, compared with 76% in the second quarter of 2025.
• Net loss was $191,989, compared with net income of $25,737 in the second quarter of 2025.
• Adjusted EBITDA was ($168,061), compared with $60,298 in the second quarter of 2025.

For the six months ended June 30, 2026, the Company generated aggregate revenue of $3,635,030, including $2,411,096 from licensing and hosting, $300,235 from design services, $320,727 from libraries, and $602,912 from implementation fees.

The net loss for the six months ended June 30, 2026 was $240,745, compared with net income of $92,829 for the same period in 2025. The change primarily reflected lower design services revenue and increased expenses associated with ongoing product development, marketing and research and development initiatives as the Company advances its next-generation technology platform.

Management Commentary

"Renoworks continues to advance its transition toward a higher-margin, higher-visibility recurring revenue software business," said Doug Vickerson, Chief Executive Officer of Renoworks. "While total revenue declined during the period, this was primarily the result of the expected and previously communicated reduction in design services revenue. At the same time, recurring revenue increased 38% year-over-year in Q2, and gross margin improved to 80%. We believe these results demonstrate the underlying shift in our revenue mix toward scalable, recurring software revenues."

"The remodeling industry is also entering an important period of change as artificial intelligence transforms how homeowners research, visualize and plan home improvement projects. Our strategy is to connect these emerging AI-driven experiences to real building products, product intelligence, project workflows and ultimately the transaction. We believe this connection between homeowner engagement and the real products our customers sell represents an important long-term opportunity for Renoworks."

Renoworks continues to invest in the next generation of its technology platform, with development priorities that include AI-driven visualization and design, Product Intelligence, measurement and estimation capabilities, predictive lead analytics, and contractor workflow solutions.

"Our objective is broader than simply applying AI to visualization," continued Vickerson. "We are building a platform that can help connect the homeowner journey from inspiration and product selection through design, project intelligence, lead generation and contractor engagement. By connecting these experiences to accurate, manufacturer-approved product information, we believe Renoworks can become an increasingly valuable technology layer between homeowners and the manufacturers, retailers and contractors serving them."

These investments increased expenses during the period but are intended to expand the capabilities of the Renoworks platform, deepen its integration into customer sales processes and strengthen the Company's long-term recurring revenue opportunity.

"As we move through the balance of 2026, our priorities remain clear: continue growing recurring revenue, advance the next generation of the Renoworks platform and deepen our relationships with manufacturers, retailers and contractors," said Vickerson. "We believe the industry is moving toward a more connected, AI-enabled remodeling experience, and Renoworks is positioning its platform to connect homeowner inspiration and design with real products, project intelligence and the professionals who ultimately complete the project."

Financial results from operations for the six months ended June 30, 2026, with comparatives for 2025, are as follows:

Financial results from operations for the second quarter of 2026, with comparatives for 2025, are as follows:

The Company's financial position as of June 30, 2026 and December 31, 2025 is as follows:

About Renoworks

Renoworks Software Inc. develops and delivers digital visualization, product intelligence, lead generation and workflow solutions for the remodeling and new home construction industry. Renoworks serves manufacturers, contractors, builders and retailers, helping connect homeowner inspiration and design with real building products and the professionals who sell and install them.

Through its Enterprise and contractor-focused solutions, Renoworks helps customers engage homeowners, manage and present product information, generate and qualify leads, and support the digital journey from initial inspiration toward project completion.

For more information, visit Renoworks' corporate website.

Non-IFRS Measures

Adjusted EBITDA is a measure not recognized under IFRS. However, management of Renoworks believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock-based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons.

Adjusted EBITDA does not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as an indicator of performance, cash flow or profitability. References to Renoworks' Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Renoworks posted on SEDAR+.

Forward-Looking Information

Certain statements in this news release, other than statements of historical fact, are forward-looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the Company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE RenoWorks Software Inc.

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