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Adcore Inc. (TSX:ADCO, OTCQX:ADCOF) presented its second quarter 2025 earnings results on August 13, highlighting improved profitability metrics despite a slight revenue decline. The digital advertising technology company’s stock traded at $0.25, down 3.85% following the presentation.
Quarterly Performance Highlights
Adcore reported Q2 2025 revenue of CAD 6.5 million, representing a modest 1% year-over-year decrease from CAD 6.6 million in Q2 2024. However, the company’s gross profit increased by 6% to CAD 3.1 million, up from CAD 2.9 million in the same period last year.
As shown in the following chart of quarterly revenue and gross profit:
The company’s gross margin expanded to 47% for the quarter, compared to 44% in Q2 2024, reflecting improved operational efficiency. Adcore also significantly reduced its net loss to CAD 425,000, nearly half of the CAD 691,000 loss reported in the same quarter last year.
A key achievement was the shift to positive Adjusted EBITDA of CAD 156,000, compared to a negative CAD 173,000 in Q2 2024, demonstrating the company’s progress toward sustainable profitability.
The comprehensive earnings highlights for the quarter include:
Regional Performance Analysis
Adcore’s Q2 2025 results revealed significant regional disparities in performance. The Asia-Pacific (APAC) region emerged as the company’s growth engine, with revenue surging 35% year-over-year and accounting for 55% of total revenue. This strong performance was attributed to increased Media Blast adoption and continued client growth in the region.
In contrast, North America experienced a substantial 43% year-over-year decline, contributing just 18% of total revenue, while the Europe, Middle East, and Africa (EMEA) region saw a more modest 6% decrease, representing 27% of total revenue.
The following map illustrates this regional revenue breakdown:
Financial Position and Profitability
Adcore maintained a strong balance sheet with CAD 9 million in cash and cash equivalents as of June 30, 2025, representing a 23% increase year-over-year. The company emphasized its debt-free status, which provides financial flexibility for future growth initiatives.
As illustrated in the quality growth KPIs chart below, Adcore has maintained relatively stable gross profit while growing its cash position over the past two years:
The company’s comprehensive income statement showed improvements in several key areas, with reduced operating losses and increased finance income contributing to the better bottom line:
The adjusted EBITDA calculation further demonstrates Adcore’s improved operational efficiency:
Growth Strategy and Innovation Focus
Adcore outlined an ambitious growth strategy for 2025, targeting a 25% revenue increase to reach CAD 40 million in annual revenue. The company aims to achieve six consecutive quarters of positive Adjusted EBITDA while growing its SaaS recurring revenue to CAD 4-5 million in annual recurring revenue (ARR).
The strategy emphasizes AI-driven innovation across research and development, applications, and marketing solutions:
During the presentation, Adcore showcased new AI-powered features in its Proposaly platform, including an AI-built proposal generator and secure payment request functionality. The company also highlighted its Creative Studio AI Excellence with examples from major clients like House (Australia’s largest homewares retailer) and The Jewish Agency for Israel.
Competitive Positioning
Adcore positioned itself as undervalued compared to industry peers, presenting a comparative analysis of key valuation metrics. According to the company’s analysis, Adcore’s Enterprise Value to Gross Profit ratio is 798% lower than comparable companies, while its EV/EBITDA ratio is 49% lower.
The following table details Adcore’s competitive positioning relative to other companies in the digital advertising and marketing technology space:
Forward-Looking Statements
Looking ahead, Adcore remains focused on executing its growth strategy through AI-driven innovation and expansion in high-growth regions, particularly in APAC. The company expects to maintain its improved profitability metrics while working toward its revenue growth targets.
CEO Omri Brill emphasized the company’s commitment to AI innovation, stating, "AI is not a slogan. It’s a way of life," according to the earnings call transcript. He also highlighted the company’s dedication to continuous improvement, noting, "We are working very hard every day to make Adcore the best and most innovative company out there."
While Adcore faces challenges in North America and EMEA markets, its strong performance in APAC and improved profitability metrics suggest the company is making progress in its strategic transformation. Investors will be watching closely to see if Adcore can maintain its positive momentum and achieve its ambitious growth targets for the remainder of 2025.
Full presentation:
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