Mr. Bill Di Nardo reports

PIVOTREE COMPLETES TURNAROUND TO FULL YEAR PROFITABILITY, ENDING 2025 WITH $6.7 MILLION IN ADJUSTED EBITDA, $4.3M IN NET INCOME AND $12.8M IN CASH BALANCE

Pivotree Inc. has released financial results for the three- and 12-month periods ended Dec. 31, 2025. All amounts are expressed in Canadian dollars unless otherwise stated.

"We delivered on our commitment to operational excellence and free cash flow generation while strategically positioning ourselves for the next phase of growth that is supported by a healthy balance sheet," said Bill Di Nardo, chief executive officer of Pivotree. "Pivotree ensures customers have the right product data, in the right format, in the right systems -- increasingly at AI-powered [artificial intelligence] speed and a fraction of traditional cost."

Pivotree also announced today that it has released a letter to shareholders from Mr. Di Nardo, CEO. The letter and other filings can be accessed from the company's website and have been filed on SEDAR+.

The results announced today, further detailed in the company's management's discussion and analysis (MD&A) and the accompanying Q4 2025 CEO letter, mark the successful completion of Pivotree's foundational turnaround. Throughout 2025, the business transitioned toward a high-margin, cash-generative model by balancing the planned wind-down of legacy managed services with a disciplined focus on operational excellence. As Pivotree enters 2026, the company's strategy shifts from stabilizing the core to accelerating growth through the agentic commerce landscape. By retooling the company's service catalogue with AI-enabled automation and moving toward outcome-oriented pricing, Pivotree is evolving its revenue mix to provide clients with faster, lower-cost digital transformations while driving long-term value for the company's shareholders.

Fourth quarter 2025 financial highlights (all figures are in Canadian dollars and all comparisons are relative to the three-month period ended Dec. 31, 2024, unless otherwise stated):

• Net income of $500,000 compared to a net loss of $200,000 for the prior-year period, primarily due to reduced operating expenses as a result of prior-year restructure efforts;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $1.2-million compared with an adjusted EBITDA of $1.7-million for the prior-year period; the consistent achievement of positive EBITDA is the result of the continued discipline and focus on gross margins and operating expenses;
• The business realized sequential quarter growth within managed and IP (Internet protocol) solutions (MIPS), which was offset by declines in professional services as described below, leading to total revenue of $14.9-million and an 18.4-per-cent decline from Q4 2024:
  • Managed and IP solutions (MIPS) revenue increased 22.2 per cent to $4.1-million in Q4 2025 from $3.4-million in Q4 2024, related to growth, and was delivered largely through the expansion of transactional SKUs (stock-keeping units);
  • Legacy managed services (LMS) revenue declined 52.4 per cent to $2.1-million in Q4 2025, from $4.5-million in Q4 2024, related to churn and melt of Legacy Oracle customers;
  • Professional services revenue of $8.6-million, a decrease of 17.0 per cent; these three-month results are related to the completion of certain system integration projects across the company's categories that were partially offset with growth within new data and integration services;
• Gross margin improved to 46.0 per cent of total revenue, yielding gross profit of $6.8-million, compared with $8-million, or 44.0 per cent of revenue, for the prior-year period; this was driven by stronger MIPS and LMS combined margins, largely through the efficiencies in producing transactional SKUs.

Fourth quarter 2025 business highlights:

• The commerce group secured a notable multiyear integration services contract in Q4, encompassing both professional and managed services. This milestone win validates the company's new AI-enabled delivery model, which is driving increased efficiency and competitive differentiation. Momentum remained strong across the company's partner ecosystem, with a series of key renewals and extensions for clients on Shopify, VTEX and SAP.
• The data team captured five new logos in Q4. This includes four wins specifically within strategic data services. The team also secured renewals and extensions on projects across partner platforms including Syndigo, Stibo and Akeneo. Over all, the quarter produced one of the strongest quarterly bookings within the company's data solution offerings;
• The supply chain business expanded Fluent OMS (order management system) engagements through several PS extensions and secured a one-year renewal for a key control tower contract.

Results of operations

The following table outlines Pivotree's consolidated statements of income (loss) and comprehensive income (loss) for the three and 12 months ended Dec. 31, 2025, and 2024.

Incentive plan awards

Pivotree also announced that it will grant, as of March 25, 2026, an aggregate of 40,000 stock options to certain executive officers of the company pursuant to the incentive plan. The options bear an exercise price of $1.71 per share, vest over a period of three years from the date of grant and will expire 10 years from the date of grant.

Conference call

Management will host a live video webinar on Thursday, March 26, 2026, at 8:30 a.m. ET to discuss these fourth quarter 2025 results. The webinar can be accessed through Pivotree's website.

A replay will be available approximately two hours after the conclusion of the live event and posted on Pivotree's website.

About Pivotree Inc.

Pivotree, a leader in frictionless commerce, strategizes, designs, builds and manages digital commerce, data management and supply chain solutions for over 150 major retailers and branded manufacturers globally. With a portfolio of digital products as well as managed and professional services, Pivotree provides businesses of all sizes with true end-to-end solutions. Headquartered in Toronto, Canada, with offices and customers in the Americas, EMEA (Europe, the Middle East and Africa) and Asia Pacific, Pivotree is widely recognized for its partnership with top brands across industries.

We seek Safe Harbor.