Vertiqal Studios Reports Second Quarter 2026 Results with Revenue Up 13% Year over Year, and Announces Changes to Its Board of Directors

Toronto, Ontario--(Newsfile Corp. - August 14, 2026) - Vertiqal Studios Corp. (TSX: VRTS) (FSE: 9PY0) ("Vertiqal" or "the Company") Vertiqal Studios, a leading digital-channel network and video-production studio, as well as the owner of North America's largest gaming and lifestyle network on social media, is pleased to announce its financial results for the three and six months ended June 30, 2026. The Company also announced the appointment of Jay Kovitz to its Board of Directors and the resignation of PJ Bujouves. Key Financial Highlights for Second Quarter 2026: Second quarter revenue of $881,792 increased 13.4% from $777,766 in the second quarter of 2025 and 21.4% from $726,091 in the first quarter of 2026. For the six months ending June 30, 2026, the direct media revenue stream increased by 130% in comparison to the six months ending June 30, 2025. Net loss for the quarter narrowed 19.9% sequentially to $914,515 from $1,142,045 in the first quarter. Operating expenses before depreciation, finance costs and non-cash items of $1,347,914, down 29.2% from the first quarter of 2026 and down 2.3% year over year. Cash of $389,830 at June 30, 2026, up from $171,619 at December 31, 2025, following the closing of a US$1,948,000 secured debenture financing on April 13, 2026. Trade receivables at June 30, 2025, reduced to $1,124,812 from $3,212,891 at December 31, 2025, reflecting collection of prior-period balances. Selected Financial Results: Q2 2026 Q2 2025 Change 6M 2026 6M 2025 Change Revenue $881,792 $777,766 +13.4% $1,607,883 $1,483,611 +8.4% Cost of sales 480,306 276,769 +73.5% 673,646 415,428 +62.2% Gross profit 401,486 500,997 -19.9% 934,237 1,068,183 -12.5% Gross margin % 45.5% 64.4% -18.9 pts 58.1% 72.0% -13.9 pts Net loss (914,515) (541,967) +68.7% (2,056,560) (1,855,380) +10.8% Comprehensive loss (1,193,165) (462,446) n/m (2,271,050) (1,816,978) +25.0% Loss per share - basic and diluted $(0.001) $(0.001) — $(0.002) $(0.003) — Adjusted loss (non-GAAP) (967,502) (885,726) +9.2% (2,285,229) (1,461,772) +56.3%   Sequential comparison: revenue of $881,792 in the second quarter of 2026 compares with $726,091 in the first quarter of 2026, an increase of 21.4%; net loss of $914,515 compares with $1,142,045, a reduction of 19.9%. Management Commentary: "Our second quarter marked a second consecutive period of sequential revenue growth, with particular strength in our United States multi-channel network operations, where six-month revenue grew 36 percent. We also reduced our operating cost base meaningfully during the quarter. We are managing the business with a clear focus on converting revenue growth into improved margins and reducing our cash burn, and we recognize there is substantial work ahead on both fronts," said Max Desmarais, Interim Chief Executive Officer and President of Vertiqal Studios Corp. Changes to the Board of Directors: The Company announced the appointment of Jay Kovitz to its Board of Directors, effective August 12, 2026. Kovitz is a Los Angeles-based media and entertainment executive with more than two decades of experience creating, producing, and building businesses across television, streaming, digital media, and branded entertainment. Kovitz began his career as the founder of Keyhole Media, where he created 23, an innovative NHL documentary series that provided unprecedented behind-the-scenes access to the Calgary Flames during the 2003-04 season. He later founded Interior Day Entertainment, building the company into a full-service production business that developed and produced unscripted programming for networks including Bravo, E!, and Slice, while securing a first-look deal with T-Group Productions, which later became part of SK Global Entertainment. From 2020 to 2025, Kovitz served as President of Highgate Entertainment, Myst Music, and HYBE X MYST, where he oversaw international content initiatives and a joint venture with global entertainment company HYBE focused on opportunities in the U.S. and Indian markets. Kovitz has also built and operated consumer-facing businesses, including EKBH Beauty/Beverly Hills Microblading, a premium aesthetics company with two Beverly Hills studios, and The Tanning Boutique in Westwood Village. Most recently, Kovitz founded The Joint Venture, a collectible art company that transforms authentic celebrity-used items into signed, limited-edition works of art, launching with an initial collaboration with Snoop Dogg. Vertiqal Studios also announces that PJ Bujouves has departed from the Board of Directors. The Company extends its sincere gratitude for PJ's service, guidance, and commitment throughout his tenure. His contributions have played an important role in Vertiqal's progress, and the Company wishes him the very best in his future endeavors. Max Desmarais, Interim CEO and President of Vertiqal Studios, stated, "Jay Kovitz joins our Board at a point where experience in media is exactly what we need around the table. His track r