VIQ Solutions Reports Adjusted EBITDA Up 72% and 115% for the Three and Nine Months Ended September 30, 2025; Scalable Operational Architecture Integrated Into Australian Operations Expected to Contribute Over $3 Million Annually

• Revenue of $10.9 million and $31 million for the three and nine months ended September 30, 2025, with gross margins up 1.5% and 3.7%, respectively.

• Adjusted EBITDA of $1.4 million and $3.2 million for the three and nine months ended September 30, 2025, up 72% and 115% vs the comparable periods in 2024, resulting in near cash flow positive third quarter operating results.

Operational highlights included leadership changes and integrating proven global systems and processes into VIQ's Australian operations. These initiatives are expected to improve performance by $3.2 million annually.

In July 2025, VIQ secured its largest SaaS engagement to date, implementing NetScribe® across 9 judicial districts and 22 counties in the US Midwest. This milestone continues VIQ's transition to higher-margin, subscription-based revenue contracts.

Subsequent events included an insider led oversubscribed private placement of over $1.9M to fund growth and technology enhancements.

Mississauga, Ontario--(Newsfile Corp. - November 12, 2025) - VIQ Solutions Inc. (TSXV: VQS) ("VIQ" or "the Company"), a global leader in AI-powered digital documentation, today announced financial results for the three and nine months ended September 30, 2025. The Company reported continued margin expansion, with its sixth consecutive quarter of positive Adjusted EBITDA.

Three Months Ended September 30, 2025 Financial Highlights

• Revenue: $10.9 million, which included a six-figure software license sale to an existing customer.
• Gross Margin: 47.8%, up from 46.3% for the same period in the prior year, driven by automation and productivity gains.
• Adjusted EBITDA: $1.4 million, an increase of 72% from the same period in the prior year, marking the sixth consecutive quarter of positive Adjusted EBITDA.
• Adjusted Operating Loss: $2 million, or $1 million excluding a $1 million restructuring charge, compared to $1.1 million from the same period in the prior year.

Nine Months Ended September 30, 2025 Financial Highlights

• Revenue: $31 million, a decrease of 5%, from the same period in the prior year, attributed largely to revenue reductions from late delivery fees in our Australian operations. Transcript deliveries have been mostly caught up during the fourth quarter and late delivery fees resolved with the recent leadership and systems changes.
• Gross Margin: 49.1%, up from 45.4% from the same period in the prior year, driven by automation and productivity gains.
• Adjusted EBITDA: $3.2 million, an increase of $1.7 million or 115% from the same period in the prior year, reflecting sustained cost discipline and efficiency gains.
• Adjusted Operating Loss: $3.5 million, or $2.5 million excluding a $1 million restructuring charge, compared to $3.5 million from the same period in the prior year.

Strategic and Operational Highlights

• The Company implemented leadership changes and integrated global processes and systems into our Australian operations to improve timely customer service delivery and increase profitability. It is anticipated that these initiatives will increase revenue and significantly reduce costs on a run rate basis by $3.2 million annually.
• The Company incurred a one-time restructuring charge of $1 million during the third quarter related to the significant changes in leadership and implementing global systems and process best practices.
• Certain offices were closed and staff relocated to reduce overhead costs.
• VIQ voluntarily delisted from the TSX to the TSXV and changed auditors to reduce expenses.
• VIQ's new TSXV listing allows additional financing options which the Company took advantage of by completing an over-subscribed insider led private placement in October and November 2025 for total proceeds of approximately $1.9 million. Proceeds will be used for customer service and technology enhancements that will further improve margins as well as fund growth initiatives including tuck-in acquisitions.

Management Commentary

"Our focus is improving VIQ's corporate cost structure and on-time delivery to our Australian customers by implementing best practice processes and systems already in place in the USA & UK business units. We have made significant progress on our restructuring plan as set out above with more to come in Q4 2025, and Q1 2026. We are pleased with the speed and quantum of these changes which will significantly improve our financial performance, including gross margins, EBITDA, profitability and cash flow in 2026. We will provide additional information on these changes in future press releases." said Larry Taylor, Interim CEO, VIQ Solutions.

"In the first nine months of 2025, VIQ grew Adjusted EBITDA by 115%, raised gross margins to nearly 50%, and posted its sixth straight quarter of positive Adjusted EBITDA.", said Alexie Edwards, CFO of VIQ Solutions. "We are encouraged by the early results from the recent changes implemented in our Australian operations and look forward to reporting on our progress throughout 2026".

A copy of the Company's unaudited financial statements and accompanying MD&A for the three and nine months ended September 30, 2025 (collectively, the "Financial Information") will be available under the Company's profile on SEDAR+ at www.sedarplus.ca.

Media Contact:
Larry Taylor, Interim CEO, VIQ Solutions
[phone]
Jacob Manning, VIQ Solutions
Email: [e-mail]
For more information about VIQ, please visit viqsolutions.com.

About VIQ Solutions

VIQ Solutions is a global provider of secure, AI-driven, digital voice and video capture technology and transcription services. VIQ offers a seamless, comprehensive solution suite that delivers intelligent automation, enhanced with human review, to drive transformation in the way content is captured, secured, and repurposed into actionable information. The cyber-secure, AI technology and services platform are implemented in the most rigid security environments including criminal justice, legal, insurance, government, corporate finance, media, and transcription service provider markets, enabling them to improve the quality and accessibility of evidence, to easily identify predictive insights and to achieve digital transformation faster and at a lower cost.

Forward-looking Statements

Certain statements included in this press release constitute forward-looking statements or forward-looking information (collectively, "forward-looking statements") under applicable securities legislation. Such forward-looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

Forward-looking statements typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking statements in this press release include but are not limited to statements with respect to the Company's ability to accelerate automation, optimize costs, and improve scalability in the future, expected margin improvement, the Company's focus and its priorities, the filing of the Financial Information on SEDAR+ and expected future Adjusted EBITDA improvement.

Forward-looking statements are based on several factors and assumptions which have been used to develop such statements, but which may prove to be incorrect. Although VIQ believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on forward-looking statements because VIQ can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding, among other things, recent initiatives, cost savings from workforce and product optimization, cost reductions from the Company's workflow solutions and that sales and prospects may increase revenue. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions that have been used.

Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that while considered reasonable by the Company as of the date of this press 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 to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the factors described in greater detail in the "Risk Factors" section of the Company's annual information form and in the Company's other materials filed with the Canadian securities regulatory authorities.

These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. Such estimates and assumptions may prove to be incorrect or overstated. The forward-looking statements contained in this press release are made as of the date of this press release and the Company expressly disclaims any obligations to update or alter such statements, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

VIQ Solutions Inc.
Interim Condensed Consolidated Statements of Financial Position
(Expressed in US dollars, unaudited)

		September 30, 2025			December 31, 2024
Assets
Current assets
Cash	$	1,286,110		$	1,573,341
Trade and other receivables, net of allowance for doubtful accounts		4,435,258			3,768,699
Inventories		28,427			23,508
Prepaid expenses and other deposits		1,106,420			1,183,496
		6,856,215			6,549,044
Non-current assets
Restricted cash		267,867			169,097
Property and equipment, net		491,738			654,223
Right-of-use assets, net		1,051,781			153,794
Intangible assets, net		4,795,693			5,661,614
Goodwill		11,977,778			11,628,213
Total assets	$	25,441,072		$	24,815,985
Liabilities
Current liabilities
Trade and other payables and accrued liabilities	$	7,510,220		$	5,673,346
Income taxes payable		82,093			29,765
Share-based payment liability		-			19,366
Derivative warrant liability		9,391			35,238
Current portion of long-term debt		18,306,865			15,988,401
Current portion of lease obligations		359,566			204,802
Contract liabilities		1,251,601			1,635,041
		27,519,736			23,585,959
Non-current liabilities
Long-term lease obligations		707,964			-
Other long-term liabilities		921,694			949,622
Total liabilities		29,149,394			24,535,581
Shareholders' equity
Capital stock		77,896,036			77,593,993
Contributed surplus		9,565,344			9,145,162
Accumulated other comprehensive loss		(1,613,261	)		(1,356,521	)
Deficit		(89,556,441	)		(85,102,230	)
Total shareholders' equity		(3,708,322	)		280,404
Total liabilities and shareholders' equity	$	25,441,072		$	24,815,985

 

VIQ Solutions Inc.
Interim Condensed Consolidated Statements of Loss and Comprehensive Loss
(Expressed in US dollars, unaudited)

		Three months ended September 30,							Nine months ended September 30,
		2025			2024				2025				2024
Revenue	$	10,917,222		$	11,116,345			$	30,941,735			$	$ 32,613,632
Cost of sales		5,701,670			5,967,429				15,741,775				17,809,341
Gross profit		5,215,552			5,148,916				15,199,960				14,804,291
Expenses
Selling and administrative expenses		3,635,916			4,191,589				11,312,668				12,831,255
Research and development expenses		225,314			171,628				545,790				492,154
Stock-based compensation		39,711			254,413				331,576				394,038
Gain on revaluation of RSUs		(133	)		(4,457		)		(19,686		)		(51,768		)
Gain on revaluation of the derivative Warrant liability		(28,272	)		(58,517		)		(27,034		)		(108,203		)
Foreign exchange gain		(288,997	)		(245,480		)		(727,324		)		(733,366		)
Depreciation		185,870			197,914				526,417				587,135
Amortization		622,091			836,301				1,988,249				2,456,647
Interest expense		444,543			464,172				1,372,869				1,259,061
Accretion and other financing costs		559,085			352,006				1,434,144				1,104,100
Loss on modification of debt		730,877			-				730,877				-
Restructuring costs		1,041,799			75,180				1,077,865				71,346
Strategic review costs (recovery)		(300,000	)		-				994,726				-
Other income		(1,405	)		(9,792		)		(9,523		)		(31,205		)
Total expenses		6,866,399			6,224,957				19,531,614				18,271,194
Current income tax expense		35,624			1,468				122,557				22,575
Income tax expense		35,624			1,468				122,557				22,575
Net loss for the period	$	(1,686,471	)	$	(1,077,509		)	$	(4,454,211		)	$	(3,489,478		)
Exchange (loss) gain on translation of foreign operations		(271,767	)		141,781				(256,740		)		(653,326		)
Comprehensive loss for the period	$	(1,958,238	)	$	(935,728		)	$	(4,710,951		)	$	(4,142,804		)
Net loss per share
Basic		(0.03	)		(0.02		)		(0.08		)		(0.07		)
Diluted		(0.03	)		(0.02		)		(0.08		)		(0.07		)
Weighted average number of common shares outstanding - basic		53,838,971			51,812,252				52,917,557				49,323,526
Weighted average number of common shares outstanding - diluted		53,838,971			51,812,252				52,917,557				49,323,526

 

The following is a reconciliation of Net Loss to Adjusted EBITDA, the most directly comparable IFRS measure for the three and nine months ended September 30, 2025, and 2024:

		Three months ended September 30,						Nine months ended September 30,
(Unaudited)		2025			2024			2025			2024
Net Loss		(1,686,471	)		(1,077,509	)		(4,454,211	)		(3,489,478	)
Add:
Depreciation		185,870			197,914			526,417			587,135
Amortization		622,091			836,301			1,988,249			2,456,647
Interest expense		444,543			464,172			1,372,869			1,259,061
Current income tax expense		35,624			1,468			122,557			22,575
EBITDA		(398,343	)		422,346			(444,119	)		835,940
Accretion and other financing costs		559,085			352,006			1,434,144			1,104,100
Loss on modification of debt		730,877			-			730,877			-
Gain on revaluation of RSUs		(133	)		(4,457	)		(19,686	)		(51,768	)
Gain on revaluation of the derivative warrant liability		(28,272	)		(58,517	)		(27,034	)		(108,203	)
Restructuring costs		1,041,799			75,180			1,077,865			71,346
Strategic review costs (recovery)		(300,000	)		-			994,726			-
Other income		(1,405	)		(9,792	)		(161,383	)		(31,205	)
Stock-based compensation		39,711			254,413			331,576			394,038
Foreign exchange gain		(288,997	)		(245,480	)		(727,324	)		(733,366	)
Adjusted EBITDA		1,354,322			785,699			3,189,642			1,480,882

 

The following is a reconciliation of Net Loss to Adjusted operating loss, the most directly comparable IFRS measure for the three and nine months ended September 30, 2025, and 2024:

		Three months ended September 30,						Nine months ended September 30,
(Unaudited)		2025			2024			2025			2024
Net Loss		(1,686,471	)		(1,077,509	)		(4,454,211	)		(3,489,478	)
Add:
Strategic review costs (recovery)		(300,000	)		-			994,726			-
Adjusted operating loss		(1,986,471	)		(1,077,509	)		(3,459,485	)		(3,489,478	)

 

Non-IFRS Measures

The Company prepares its financial statements in accordance with IFRS. Non-IFRS measures are provided by management to provide additional insight into our performance and financial condition. VIQ believes non-IFRS measures are an important part of the financial reporting process and are useful in communicating information that complements and supplements the consolidated financial statements.

Adjusted EBITDA and adjusted operating loss are not measures recognized by IFRS and do not have standardized meanings prescribed by IFRS. Therefore, Adjusted EBITDA and adjusted operating loss may not be comparable to similar measures presented by other issuers. Investors are cautioned that Adjusted EBITDA and adjusted operating loss should not be construed as alternatives to net income (loss) as determined in accordance with IFRS. For a reconciliation of net income (loss) to Adjusted EBITDA and adjusted operating loss please see the Company's MD&A for three and nine months ended September 30, 2025.

To evaluate the Company's operating performance as a complement to results provided in accordance with IFRS, the term "Adjusted EBITDA" refers to net income (loss) before adjusting earnings for stock-based compensation, depreciation, amortization, interest expense, accretion, and other financing expense, (gain) loss on revaluation of options, (gain) loss on revaluation of restricted share units, gain (loss) on revaluation of derivative warrant liability, restructuring costs, strategic review costs, loss on modification of debt, impairment of property and equipment, impairment of goodwill and intangibles, other expense (income), foreign exchange (gain) loss, current and deferred income tax expense. We believe that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of the Company.

We believe that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, impairment of goodwill and intangibles, loss on modification or extinguishment of debt, other expense (income), and foreign exchange (gain) loss. Accordingly, we believe that this measure may also be useful to investors in enhancing their understanding of the Company's operating performance.

The term "adjusted operating loss" refers to net income (loss) excluding the impact of strategic review costs. Management believes it is appropriate to adjust for this item because strategic review costs do not relate to operating activities of the Company and is useful supplemental information as it provides an indication of the results generated by the Company's main business activities. The presentation of this measure enables investors and analysts to better understand the underlying performance of our business activities.

Trademarks

This press release includes trademarks, such as "NetScribe", which are protected under applicable intellectual property laws and are the property of VIQ. Solely for convenience, our trademarks referred to in this press release may appear without the ® or TM symbol, but such references are not intended to indicate, in any way, that we will not assert our rights to these trademarks, trade names, and services marks to the fullest extent under applicable law. Trademarks that may be used in this press release, other than those that belong to VIQ, are the property of their respective owners.

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

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