Destiny Media Technologies Inc. Announces Fiscal 2026 Second Quarter Results

2026-04-14 09:04:52

(MENAFN- Newsfile Corp) Destiny Media Technologies Inc. Announces Fiscal 2026 Second Quarter Results

April 14, 2026 9:01 AM EDT | Source: Destiny Media Technologies, Inc.

Vancouver, British Columbia--(Newsfile Corp. - April 14, 2026) - Destiny Media Technologies Inc. (TSXV: DSY) (OTCQB: DSNY), the makers of Play MPE®, a cloud-based SaaS solution for digital asset management in the music industry, today announced financial results for its fiscal 2026 second quarter ended February 28, 2026.

"Since assuming the role of Interim-CEO and spending more time with the team and customers, I am even more impressed with the talent of the team and the strength of our customer value proposition. We continue to make progress in diversifying our customer base, with growth in independent customers helping to balance changes in activity from larger customers," said Hyonmyong Cho, Chairman and Interim CEO. "The Board and I continue to advance the search process for a permanent CEO. In the meantime, the senior leadership team is focused on strengthening our business development and marketing efforts to support customer acquisition, increase engagement, and drive more scalable growth."

Financial Highlights

Q2 FY2026 vs Q2 FY2025

Growth in total customers of 5.0% Revenue of $1.0 million, a decrease of 1.6% GAAP Net loss per share of $0.06, versus a loss of $0.03 in the comparable period a year ago Adjusted EBITDA loss of $403,000, versus $117,000 in the comparable period a year ago. Q2 FY2026 included a one-time severance cost of $244,000.

About Destiny Media Technologies Inc.

Destiny Media Technologies ("Destiny") provides software as service (SaaS) solutions to businesses in the music industry solving critical problems in distribution and promotion. The core service, Play MPE®, provides promotional music marketing to engaged networks of decision makers in radio, film, TV, and beyond. More information can be found on the DSNY website.

Forward-Looking Statements

This release contains forward-looking statements that reflect current views with respect to future events and operating performance. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. Destiny Media Technologies is not obligated to update these statements in the future. For more information on the Company's risks and uncertainties relating to those forward-looking statements, please refer to the Risk Factors section in our Annual Form 10-K for the fiscal year ended August 31, 2025, which is available on or .

Non-GAAP Financial Measures

Adjusted EBITDA is not defined under U.S. GAAP and may not be comparable to similarly titled measures reported by other companies. We use Adjusted EBITDA, together with other GAAP measures, as a measure of our operating performance because it helps us compare our performance on a consistent basis by removing from our results the impact of our capital structure, the effect of operating in different tax jurisdictions, and the impact of our asset base, which can vary depending on the book value of assets, the accounting methods used to compute depreciation and amortization, the existence or timing of asset impairments, and non-cash stock-based compensation expense.

We believe Adjusted EBITDA is useful to investors because it is a widely used measure of performance and because the adjustments we make provide additional clarity regarding our operating results and underlying profitability.

Adjusted EBITDA has limitations as a measure of profitability, as it does not include the effects of interest, income taxes, capital expenditures, depreciation and amortization, asset impairments, or non-cash stock-based compensation expense. Accordingly, it should not be considered in isolation or as a substitute for net income (loss) or other financial measures prepared in accordance with U.S. GAAP.

A reconciliation of net loss, the most directly comparable GAAP measure, to Adjusted EBITDA is included below.

Contact:

Hyonmyong Cho
Chairman, Interim CEO, Destiny Media Technologies, Inc.
604 609 7736

DESTINY MEDIA TECHNOLOGIES, INC.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)

			Three months ended February 28,			Six months ended February 28,
	Notes		2026			2025			2026			2025

Service revenue	8	$	1,003,109		$	1,018,972		$	2,246,248		$	2,245,729

Cost of revenue
Hosting costs			61,225			41,387			134,556			88,328
Internal engineering support			12,937			13,768			27,569			27,133
Customer support			73,312			78,020			156,226			153,753
Third-party and transactions costs			20,658			16,112			30,845			36,188
			168,132			149,287			349,196			305,402
Gross margin			834,977			869,685			1,897,052			1,940,327
			83.2%			85.3%			84.5%			86.4%
Operating expenses
General and administrative			588,339			394,890			756,664			546,219
Sales and marketing			225,982			171,923			413,573			402,481
Product development			424,002			427,735			878,950			839,779
Depreciation and amortization	4,5		167,017			183,724			339,502			350,703
			1,405,340			1,178,272			2,388,689			2,139,182
Loss from operations			(570,363	)		(308,587	)		(491,637	)		(198,855	)

Other income
Interest and other income			4,053			6,493			8,979			14,901
Net loss before income tax		$	(566,310	)	$	(302,094	)	$	(482,658	)	$	(183,954	)
Current income tax expense			-			-			-			-
Net loss		$	(566,310	)	$	(302,094	)	$	(482,658	)	$	(183,954	)
Foreign currency translation adjustments		40,335			(85,967	)		1,142			(198,636	)
Total comprehensive loss		$	(525,975	)	$	(388,061	)	$	(481,516	)	$	(382,590	)

Net loss per common share
Basic and diluted	6	$	(0.06	)	$	(0.03	)	$	(0.05	)	$	(0.02	)

Weighted average common shares outstanding:
Basic	6		9,637,410			9,637,410			9,637,410			9,637,410
Diluted	6		9,637,410			9,637,410			9,637,410			9,637,410

DESTINY MEDIA TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(Unaudited)

	Notes	February 28, 2026		August 31, 2025

ASSETS
Cash and cash equivalents	3	$	1,151,271		$	1,117,889
Accounts receivable, net of allowance for doubtful accounts of $102,996 (August 31, 2025 - $82,184)	8		928,382			863,422
Other receivables			33,270			127,698
Prepaid expenses			33,372			38,252
Deposits			31,991			31,581
Total current assets			2,178,286			2,178,842

Property and equipment, net	4		466,445			752,719
Intangible assets, net	5		30,197			35,282
Total assets		$	2,674,928		$	2,966,843

LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable		$	63,672		$	70,255
Accrued liabilities			643,286			432,959
Deferred revenue			24,860			41,041
Total current liabilities			731,818			544,255
Total liabilities			731,818			544,255

Stockholders' equity
Common stock, par value $0.001, authorized 20,000,000 shares. Issued and outstanding - 9,637,410 shares (August 31, 2025 - 9,637,410 shares)	6		9,637			9,637
Additional paid-in capital			8,853,551			8,851,513
Accumulated deficit			(6,313,144	)		(5,830,486	)
Accumulated other comprehensive loss			(606,934	)		(608,076	)
Total stockholders' equity			1,943,110			2,422,588
Total liabilities and stockholders' equity		$	2,674,928		$	2,966,843

DESTINY MEDIA TECHNOLOGIES, INC.
Net Loss to Adjusted EBITDA Reconciliation
(Unaudited)

		For the three months ended			For the six months ended
	February 28, 2026		February 28, 2025		February 28, 2026		February 28, 2025
Net loss	$	(566,310	)	$	(302,094	)	$	(482,658	)	$	(183,954	)
Stock based compensation		705			8,144			2,038			18,903
Amortization		167,017			183,724			339,502			350,703
Interest		(4,053	)		(6,493	)		(8,979	)		(14,901	)
Adjusted EBITDA	$	(402,641	)	$	(116,719	)	$	(150,097	)	$	170,751

To view the source version of this press release, please visit

Source: Destiny Media Technologies, Inc.

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