Ionik Reports Q2 2026 Financial Results

Revenue of $47.4 million Adjusted EBITDA of $8.4 million June refinancing completed; debt maturities extended (All figures in US dollars, unless otherwise indicated) Toronto, Ontario--(Newsfile Corp. - August 28, 2026) - Ionik Corporation (TSXV: INIK) (OTCQB: INIKF) (the "Company" or " Ionik" ), a data and technology-driven marketing platform, today announced financial results for the three months ended June 30, 2026 (" Q2 2026 " ), highlighted by a successful completion of its comprehensive debt reorganization and refinancing, strong Adjusted EBITDA and continued progress on platform integration.

Q2 2026 Financial Highlights Revenue of $47.4 million, down 8% from $51.7 million in the same period of the prior year (" Q2 2025" ). Growth in Media Activation, supported by new sales staff and key accounts, was more than offset by lower Marketing Optimization revenue, primarily from one customer. Gross profit of $18.2 million, representing a 38% margin, compared to $20.9 million and a 40% margin in Q2 2025. The decline primarily reflected lower revenue and related gross profit from the same Marketing Optimization customer. Net income from continuing operations was $14.9 million, or $0.04 per basic share and $0.03 per diluted share, compared with a net loss of $2.4 million, or $0.01 per basic and diluted share, in Q2 2025. The result included non-cash gains of $12.4 million on the fair value of financial liabilities and $8.8 million on extinguishment of loans and debentures. Adjusted EBITDA 1 of $8.4 million, compared to $9.5 million in Q2 2025. Lower customer revenue and gross profit were partly offset by reduced operating costs in Marketing Optimization and corporate functions associated with integration. Adjusted Free Cash Flow 1 of $6.8 million representing a 81% Adjusted Free Cash Flow conversion rate 1 , compared to $7.6 million and a 79%in Q2 2025.

Debt Reorganization and Financial Position The $100 million credit package closed in June 2026 comprised an $80 million senior term facility, a $10 million revolving facility and a $10 million subordinated facility. The financing replaced the previous syndicated facility and funded acquisition-related cash settlements, transaction costs and working capital. At June 30, 2026, total undiscounted debt was $124.8 million, compared with $111.4 million at March 31, 2026. The June balance comprised $80.0 million under the senior term facility, $9.0 million drawn on the revolver, $10.0 million of subordinated debt, $19.3 million of convertible debt and a $6.5 million promissory note. Cash was $10.8 million, compared with $5.8 million at March 31, 2026 and $11.3 million at December 31, 2025. Senior debt net of cash was $78.2 million, compared with $58.3 million and $58.0 million, respectively. Undrawn revolving availability was $1.0 million at June 30, 2026. The senior term facility matures in June 2029 and carries quarterly amortization. The remaining acquisition-related debt maturities were extended to March 2030. The Company remains subject to interest, principal-payment and covenant obligations.

Operating Alignment On July 21, 2026, Ionik announced an alignment of its operating structure. Marketing Optimization operates under the SHIFT44 brand, while Media Activation operates under Q1Media. This operating-brand alignment was announced after the end of the second quarter. First-Half Results and Management Commentary For the six months ended June 30, 2026, net income from continuing operations was $13.8 million, compared with a net loss of $6.0 million in the prior-year period. Adjusted EBITDA1 was $14.2 million, compared with $15.8 million. "Our focus in the first half of 2026 was on three main objectives: achieving our consolidated financial targets, completing the reorganization of our balance sheet including a refinance of our senior debt facility and continued integration under our two divisions of SHIFT44 a...