Ionik Delivers Record Revenue & Adjusted EBITDA In Second Quarter 2025

Record Quarterly Adjusted EBITDA ¹ of $9.3 million - an increase of 58% over Q2 2024 and 47% over prior quarter

Generated Adjusted Free Cash Flow ¹ of $7.3 million and reduced Senior Debt by $4.3 million

(All figures in US dollars, unless otherwise indicated)

Toronto, Ontario--(Newsfile Corp. - August 28, 2025) - Ionik Corporation (TSXV: INIK) (OTCQB: INIKF) (the "Company" ), a data and technology-driven marketing and advertising solutions company, announced its financial results for the second quarter ended June 30, 2025.

Financial Highlights for the Second Quarter 2025

• Revenue of $53.5 million, an increase of 20% compared to $41.8 million in the same period of the prior year (" Q2 2024 "), and 28% over the prior quarter (" Q1 2025 "). The change versus the prior year was mainly attributable to the acquisitions of Nimble5, LLC in September 2024 and Rise4 Inc. in November 2024 (the " 2024 Acquisitions ")

• Gross profit increased 28% to $21.4 million (40% gross profit margin), compared to $16.7 million (37% gross profit margin) in Q2 2024. The increase was predominantly attributable to growth driven by the 2024 acquisitions.

• Adjusted EBITDA¹ of $9.3 million increased 58% over Q2 2024 and 47% over Q1 2025, with growth derived mainly from the 2024 Acquisitions.

• Adjusted Free Cash Flow¹ of $7.3 million (79% Adjusted Free Cash Flow conversion rate¹), compared to $3.9 million (67% Adjusted Free Cash Flow conversion rate¹) for Q2 2024. Adjusted Free Cash Flow¹ reported in Q2 2024 was affected by income taxes paid totalling $1.9 million.

• Net loss after tax from continuing operations of $2.8 million versus a net income of $0.1 million for Q2 2024.

• Cash as at June 30, 2025 was $5.1 million, compared to $12.7 million at March 31, 2025 and $6.8 million at June 30, 2024. As at June 30, 2025, the Company had not drawn on its revolving facility of $10.0 million. Management believes that its current capital position is sufficient to execute its current business and operational strategies.

• Total undiscounted debt decreased by $5 million as at June 30, 2025. The total undiscounted balance was $117.5 million, including $79.7 million of senior lender debt, $29.6 million of convertible debt, and $5.3 million in a vendor take-back loan and $3.0 million in working capital note compared to $122.5 million in total debt as at March 31, 2025 and $126.5 million in total debt as at December 31, 2024. The decrease compared to the undiscounted debt balance at March 31, 2025 resulted primarily from principal payments of $4.3 million on the senior debt term facility in the quarter. Senior debt net of cash was $74.6 million at June 30, 2025, compared to $71.4 million at March 31, 2025 and $73.4 million at December 31, 2024.

¹ Please refer to "Non-IFRS Measures" section of this press release

Ted Hastings, Ionik's CEO commented, "During highly dynamic market conditions our platform and team have responded well as evidenced by our strong EBITDA and Revenues in Q2. We have focused this year on integration across our two platforms - Marketing Optimization and Media Activation - and that streamlined focus is allowing us to service our growing customers better while improving our gross profit margins. We remain confident in the platform and team we've assembled and our ability to achieve our objectives in the second half."

Non-IFRS Measures

The Company prepares its financial statements in accordance with International Financial Reporting Standards (" IFRS "). However, the Company considers certain non-IFRS financial measures as useful additional information to assess its financial performance. These measures, which it believes are widely used by investors, securities analysts and other interested parties to evaluate its performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include "Adjusted EBITDA","Adjusted Free Cash Flow" and "Adjusted Free Cash Flow conversion rate".

Adjusted EBITDA and Adjusted Free Cash Flow

Consolidated adjusted earnings before interest, taxes, depreciation and amortization (" Adjusted EBITDA ") is a non-IFRS measure of financial performance. Company management defines Adjusted EBITDA as IFRS Net income (loss) adding back finance costs, income taxes, depreciation and amortization, gain/loss on disposal of assets and extinguishment of loans, fair value gain/loss on financial liabilities and modification/extinguishment on loans, and excludes discontinued operations and the effects of significant items of income and expenditure which may have an impact on the quality of earnings, such as impairments where the impairment is the result of an isolated, non-recurring event. It also excludes the effects of equity-settled share-based payments, foreign exchange gains/losses, and other extraordinary one-time expenses, such as transaction costs and other severance and restructuring costs. See reconciliation of Adjusted EBITDA in the table below.

Company management defines " Adjusted Free Cash Flow " as Adjusted EBITDA less capital expenditures, such as acquisition of property and equipment and additions to intangibles for capitalized development costs, and income taxes paid during the period. Similarly, Company management defines " Adjusted Free Cash Flow conversion rate " as Adjusted Free Cash Flow divided by Adjusted EBITDA. See reconciliation of Adjusted Free Cash Flow in the table below.

The presentation of these non-IFRS financial measures are not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with IFRS and may be different from non-IFRS financial measures used by other companies.

Management believes Adjusted EBITDA and Adjusted Free Cash Flow are useful financial metrics to assess its operating performance on a cash basis before the impact of non-cash and extraordinary one-time items.

The following tables presents the Company's calculation of Adjusted EBITDA and Adjusted Free Cash Flow for each period:

Financial Statements and MD&A

Ionik's Financial Statements for the three months ended June 30, 2025, and Management's Discussion and Analysis for the same period, are posted on its corporate website at and available on the Company's profile on SEDAR+ at .

About Ionik

Ionik, a Tier 1 Issuer on the TSX Venture Exchange, with shares also trading on the OTCQB Venture Market, is a technology-driven marketing and advertising solutions company that helps brands, advertisers, and publishers connect with their audiences through data-driven insights and advanced automation. By leveraging its extensive suite of technology, creative expertise, and proprietary first-party data, Ionik optimizes the entire customer acquisition and retention journey.

Ionik's platform unifies marketing automation, media activation, and data management to create a seamless advertising ecosystem, helping businesses efficiently source, retain, and monetize their customers

Additional information about the Company is available at .

Ionik Corporation
Sean Peasgood
Investor Relations
(647) 777-7564
...

Jeff Collins
CFO/COO
(416) 583-5918
...

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward-Looking Information

Certain information in this news release constitutes forward-looking statements and forward-looking information under applicable Canadian securities legislation (collectively, "forward-looking information"). Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. Forward-looking information includes, but is not limited to, statements with respect to the business, financials and operations of the Company, statements with respect to the Company's sufficiency of its capital position to execute on business and operational strategies, successful integration of acquisitions, operational and financial growth strategy, ability to make debt repayments, expected Adjusted Free Cash Flow and anticipated success in customer adoption of the Company's products and services. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events. Forward looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements and future events to be materially different from those expressed or implied by such forward-looking information, including but not limited to assumptions relating to continued customer support for the Company's products and services, competition, the ability of the Company to innovate and advance its product and service offerings, general market conditions, exchange rate, global financial conditions, the ability of the Company to meet its liabilities as they become due, the ability of the Company to integrate and successfully capitalize on acquisitions, and the factors described in greater detail in the public documents of the Company available at . Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Investors are cautioned that undue reliance should not be placed on any such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

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SOURCE: Ionik Corporation

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