Mr. Simon Cairns reports

ILLUMIN REPORTS THIRD QUARTER 2025 FINANCIAL RESULTS

Illumin Holdings Inc. has released its financial results for the third quarter ended Sept. 30, 2025.

Third quarter 2025 highlights:

• Third quarter 2025 revenue rose 5 per cent year over year to $38.2-million, driven by 103-per-cent year-over-year growth in exchange service revenue, partially offset by a decrease in managed service revenue.
• Exchange service revenue increased to $20.5-million.
• Self-service revenue at $8.3-million was relatively stable compared with $8.4-million in the year-ago period. Excluding the impact of a single client that paused in early 2025 due to restructuring, self-service sales were up 15 per cent for the quarter and 34 per cent for the year.
• The company onboarded 23 net new self-service clients during the quarter, reflecting sales initiatives targeting higher-spend clients and positioning the company for long-term revenue growth in this service area.
• Managed service revenue was $9.4-million due to broader market uncertainty, which has been influencing some customers' marketing spend.
• Gross margin was 38 per cent, compared with 47 per cent during the same period last year, due to an increase in the proportion of revenue in service lines with lower gross margins.
• Net revenue, or gross profit (revenue less media-related costs), was $14.4-million, compared with $17.2-million in the prior year period, reflecting lower gross margins as mentioned above.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $200,000, compared with $1.9-million in the prior-year period, primarily attributable to lower gross profit despite higher revenue, partially offset by lower general and administrative costs.
• Net loss was $2.1-million, compared with $1.1-million in Q3 2024. This was primarily a result of lower adjusted EBITDA, higher depreciation and amortization expense, and higher severance expenses resulting from the company's cost-containment initiatives, partly offset by a higher foreign exchange gain.
• On Dec. 23, 2024, the company commenced a new normal course issuer bid (NCIB) for its common shares that will remain open until Dec. 22, 2025, or such earlier time as the NCIB is completed or terminated at the option of the company. For the three and nine months ended Sept. 30, 2025, the company purchased and cancelled 432,490 and 744,108 common shares, respectively, at an average price of $1.57 and $1.65 per share for a total consideration of $700,000 and $1.2-million, respectively.
• In September, 2025, the company appointed Brian Garrigan as its new chief revenue officer (CRO), who comes directly from DSP (demand-side platform) and ad tech sales with a strong focus on strategic partners and value-added services.

Simon Cairns, Illumin's chief executive officer, commented: "Our third quarter results demonstrate that our strategic pivot towards an integrated outcomes-based platform in exchange and self-service, supported by managed service, is meeting growing industry demand. Exchange service revenue more than doubled in the quarter, and, when adjusted for the temporary exit of one client, self-service revenue was up 34 per cent for the year and 15 per cent for the quarter.

"In uncertain markets like we've seen throughout 2025, Illumin is attracting new customers to its exchange service offering as publishers seek to replace the value that they used to get from older established supply-side platforms and more brands are shifting to self-service options in a goal of converting more of their ad spend to actual advertising."

Mr. Cairns continued: "The market is clearly moving away from traditional demand-side platforms and is looking for a new answer. In 2026, Illumin will finally deliver on the long-held promise of ad tech: giving advertisers a clear, real-time understanding of whether their media dollars are truly driving new business, all without ever leaving the Illumin platform. Together with our forthcoming generative AI-powered [artificial intelligence] self-service edition, Illumin creates a continuous, closed loop of learning and optimization, empowering advertisers to plan, measure and improve every campaign in one intelligent platform.

"While managed service faces headwinds from market uncertainty, we're taking decisive actions to streamline operations through cost containment and to accelerate our shift toward scalable, technology-led revenue with a focus on improved cash flow generation and protecting our balance sheet.

"As we close 2025 and move into 2026, our priorities are clear. First, continue scaling exchange and self-service through platform innovation and sales execution; second, continue investing in our product road map to differentiate ourselves in an increasingly competitive market, particularly in incrementality measurement and AI-powered optimization; and third, complete our operational restructuring to drive profitability and platform leverage, as our generative self-service version not only removes friction in customer adoption and spending but also creates new opportunities to realize platform leverage. We're confident this strategy will position Illumin for sustainable, profitable growth," Mr. Cairns concluded.

Elliot Muchnik, Illumin's chief financial officer, commented: "Our third quarter results reflect continued momentum in exchange service, where revenue more than doubled year over year due to strong execution by our commercial and technology teams. While changes in product mix affected our gross margin and increased related operating costs such as hosting, we are already seeing early benefits and strong offsets from the restructuring and cost-reduction initiatives we've been implementing this year. These actions are helping us streamline operations and improve profitability as we move into 2026."

Conference call details

Date:  Friday, Nov. 7, 2025

Time:  8:30 a.m. Eastern Time

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About Illumin Holdings Inc.

Illumin is evolving the digital advertising landscape by empowering marketers to achieve transformative results through its customer-centric approach. Featuring a unified canvas built around the open Web, Illumin lets brands and agencies seamlessly plan, build and execute campaigns across the entire marketing funnel -- connecting programmatic channels, e-mail and social media within a single platform. Headquartered in Toronto, Canada, Illumin serves clients across North America, Latin America and Europe.

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