NowVertical Group Reports First Quarter 2026 Financial Results

Company Hosting Investor Webinar on Wednesday May 27, 2026, at 11:00AM ET

TORONTO, May 27, 2026 (GLOBE NEWSWIRE) -- NowVertical Group Inc. (TSX-V: NOW) (“NOW” or the “Company”), a leader in AI-driven data solutions, announces financial results for its first fiscal quarter ended March 31, 2026. Unless otherwise specified, all dollar amounts are expressed in U.S. dollars. Management will host an investor webinar at 11:00 AM ET (8:00 AM PT) on Wednesday May 27^th, to discuss the Company’s financial and business results.

"Our priorities over the past several quarters have been delivering consistent revenue and Adjusted EBITDA while progressively improving the quality of the underlying revenue mix, and Q1 2026 continues that trajectory," said Sandeep Mendiratta, Chief Executive Officer of the Company.

"In Q1 2026, our Top 30 Strategic Accounts grew 9% from Q1 2025 and now represent 73% of total revenue, up from 62% in Q1 2025. Google Cloud revenue grew 84% to $2.7 million in Q1 2026 compared to Q1 2025, and Integration revenue grew 58% to $1.9 million in Q1 2026 compared to Q1 2025. As these higher-margin areas accelerate, lower-margin reselling revenue continues to roll off, which is exactly the shift in mix we have been working toward.

Operationally, our focus remains consistent: connecting customer and finance data to measurable outcomes, proving value early, and scaling through AI-enhanced delivery. With NowUnlock now live and our recognition as Google Cloud Data & Analytics Partner of the Year for Latin America for the second consecutive year, we are executing this model with discipline as we move through 2026."

Selected Financial Highlights for the Three Months ended March 31, 2026:

Revenue was $9.7 million in the three months ended March 31, 2026 (“Q1 2026”), a 6% decrease from $10.4 million for the three months ending March 31, 2025 (“Q1 2025”), due to a decrease in Brazil license and maintenance reselling revenue.
Gross Profit was $4.7 million in Q1 2026, an 8% decrease from $5.1 million in Q1 2025, due to lower Brazil license and maintenance reselling revenue. Gross profit margin was 48% in Q1 2026 compared to 50% in Q1 2025.
Administrative Expenses were $3.6 million in Q1 2026, consistent with $3.6 million in Q1 2025.
Income from Operations was $1.1 million in Q1 2026, a 26% decrease from $1.5 million in Q1 2025, mainly due to lower gross profit.
Adjusted EBITDA was $1.8 million and 18% of revenue in Q1 2026, a 30% decrease from $2.5 million and 24% of revenue in Q1 2025. Adjusted EBITDA is a non-GAAP financial measure, see “Non-IFRS Measures” below.

Q1 2026 and Subsequent Business Highlights:

May 14, 2026: The Company signs a $4 million, three-year AI and Google Cloud agreement with a leading Latin American fintech company.
April 30, 2026: The Company expands its strategic data and analytics engagement with a leading Latin American technology, e-commerce and fintech company through increased recurring revenue.
April 21, 2026: The Company announced that it has been named the 2026 Google Cloud Data & Analytics Partner of the Year for Latin America, marking the second consecutive year the Company has received this award.

Q1 2026 Financial Results Investor Webinar:

The Company invites shareholders, analysts, investors, media representatives, and other stakeholders to attend our upcoming webinar. Management will discuss Q1 2026 results, followed by a question-and-answer session.

Investor Webinar Registration:

Time: Wednesday May 27, 2026, 11:00 AM in Eastern Time (US and Canada)

Registration Link:
https://us02web.zoom.us/webinar/register/WN_vF1x3CArT0ymlkRiXu6ClQ

A recording of the webinar and supporting materials will be made available in the investor’s section of the Company’s website at https://www.nowvertical.com/news-and-media.

Additional Information:

The Company's first quarter of 2026 condensed consolidated interim financial statements, notes to financial statements, and management's discussion and analysis for the three months ended March 31, 2026, are available on the Company's SEDAR+ profile at www.sedarplus.com. Unless otherwise indicated, all references to "$" in this press release refer to US dollars, and all references to "CAD$" in this press release refer to Canadian dollars.

About NowVertical Group Inc.

The Company is a data analytics and AI solutions company offering comprehensive solutions, software and services. As a global provider, we deliver cutting-edge data, technology, and artificial intelligence (AI) applications to private and public enterprises. Our solutions form the bedrock of modern enterprises, converting data investments into business solutions. NOW is growing organically and through strategic acquisitions. For further details about NOW, please visit www.nowvertical.com.

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.

For further information, please contact:

Andre Garber, CDO 
IR@nowvertical.com 

Investor Relations:
Bristol Capital Ltd.
Stefan Eftychiou
stefan@bristolir.com
+1(905)326-1888 x60 

Cautionary Note Regarding Non-IFRS Measures:

This news release refers to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. The Company’s definitions of non-IFRS measures used in this news release may not be the same as the definitions for such measures used by other companies in their reporting. Non-IFRS measures have limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. The Company uses non IFRS financial measures including “Adjusted EBITDA”. These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and to eliminate items that have less bearing on our operational performance or operating conditions and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures in the evaluation of issuers. The Company’s management also uses non-IFRS financial measures to facilitate operating performance comparisons from period to period and prepare annual budgets and forecasts.

Non-IFRS Measures:

The non-IFRS financial measures referred to in this news release are defined below. The management discussion and analysis for the three months and year ended December 31, 2026, available at nowvertical.com and on SEDAR+ at www.sedarplus.com contains supporting calculations for EBITDA % and Adjusted EBITDA.

“Adjusted EBITDA” adjusts net income (loss) before depreciation and amortization expenses, net interest costs, and provision for income taxes and items such as acquisition accounting adjustments, transaction expenses related to acquisitions, transactional gains or losses on assets, asset impairment charges, non-recurring expense items, non-cash stock compensation costs, and the full year impact of cost synergies related to restructuring activities, such as a reduction of employees.

The Company has reconciled Adjusted EBITDA to the most comparable financial measure as follows:

	For the three months ended
	Mar 31, 2026			Mar 31, 2025
Income from operations	$	1.1		$	1.5
Depreciation and amortization		0.3			0.4
Expenses incurred in connection with acquisitions		0.1			0.0
Foreign exchange loss (gain)		(0.0	)		0.5
Stock-based compensation		0.3			0.1
Impact of cost synergies related to reduction of employees		-			0.0
Adjusted EBITDA	$	1.8		$	2.5

Cautionary note regarding Forward-Looking Statements

This news release may contain forward-looking statements and forward-looking information (within the meaning of applicable securities laws) which reflect the Company's current expectations regarding future events. All statements in this news release that are not purely historical statements of fact are forward-looking statements and include statements regarding beliefs, plans, expectations, future, strategy, objectives, goals and targets. Although the Company believes that such statements are reasonable and reflect expectations of future developments and other factors which management believes to be reasonable and relevant, the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements can generally be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements are not guarantees of future performance and undue reliance should not be placed thereon, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

All of the forward-looking statement contained in this press release are qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward -looking statements contained herein are provided as of the date hereof, and the Company does not intend, and does not assume any obligation, to update the forward-looking statements except as otherwise required by applicable law.

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