Adcore (ADCO) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw strong EMEA revenue growth (up 25% year-over-year) and APAC growth (up 7%), offsetting significant North American softness (down 50% year-over-year).

• Operational expenses declined, with R&D down 10% and SG&A down 12% year-over-year.

• Adjusted EBITDA improved 56% year-to-date, with six consecutive quarters of positive results.

• Focus on recurring revenue, operational efficiency, and product innovation, including advancements in Proposaly.io and a new marketing website.

• The company remains optimistic for Q4, historically its strongest quarter.

Financial highlights

• Q3 2025 revenue was CAD $7.6 million, down 2% from Q3 2024.

• Gross profit was CAD $3.1 million, down from $3.7 million year-over-year; gross margin for Q3 2025 was 40%, compared to 47% in Q3 2024.

• Adjusted EBITDA for the nine months ended September 30, 2025, was nearly CAD $500,000, up 56% year-over-year.

• Net loss for Q3 2025 was CAD $448,000, up from $172,000 in Q3 2024; net loss for nine months reduced to CAD $1.075 million from $1.262 million year-over-year.

• Cash and cash equivalents as of September 30, 2025, were CAD $7.26 million, up 8% year-over-year.

Outlook and guidance

• Management expects Q4 2025 to be the strongest quarter, maintaining a positive trend.

• Proposaly is expected to begin monetization in early 2026, with ambitions to match or exceed MediaBlast's first-year ARR.

• Targeting 25% annual revenue growth to reach $40 million and $4M–$5M ARR from SaaS applications.

• Priorities for 2026 include driving growth in core markets, accelerating commercialization of Proposaly, and deepening client relationships.

• No plans for further geographic expansion in 2026; focus remains on current markets and technology pipeline.