Earnings call transcript: Adcore's Q3 2025 sees revenue dip, stock drops

Adcore Inc. reported its third-quarter 2025 earnings with a slight decline in revenue and a notable increase in net loss, prompting a negative reaction in its stock price. The company's revenue for the quarter was CAD 7.6 million, a 2% decrease from the previous year, while the net loss widened significantly. Despite these challenges, Adcore remains optimistic about its future, with plans to monetize its Proposly platform in early 2026. The stock price fell by 8.33% following the earnings announcement.

Key Takeaways

• Q3 2025 revenue decreased by 2% year-over-year to CAD 7.6 million.
• Net loss increased by 160% to CAD 0.4 million.
• Stock price dropped by 8.33% post-earnings.
• Cash and cash equivalents grew by 8% to CAD 7.3 million.
• Proposly platform set for monetization in early 2026.

Company Performance

Adcore's overall performance in Q3 2025 reflects a challenging market environment, particularly in North America, where revenue dropped by 50%. However, the company saw growth in the EMEA and APAC regions, with increases of 25% and 7%, respectively. Despite a decrease in gross margin from 47% to 40%, Adcore's adjusted EBITDA for the first nine months increased by 56% to CAD 500,000, highlighting some operational efficiencies.

Financial Highlights

• Revenue: CAD 7.6 million, down 2% year-over-year.
• Gross Profit: CAD 3.1 million, down 16%.
• Net Loss: CAD 0.4 million, a 160% increase.
• Cash and Cash Equivalents: CAD 7.3 million, up 8%.
• Gross Margin: 40%, down from 47%.

Outlook & Guidance

Looking forward, Adcore expects the North American market to bottom out in Q4 2025. The company plans to launch its Proposly platform commercially in early 2026, aiming for annual recurring revenue similar to its MediaBlast service. Despite current challenges, Adcore is not planning any geographic expansions in 2026 but will continue to invest in R&D and technology development.

Executive Commentary

CEO Omri Brill expressed optimism about the company's future, stating, "The future of the company is bright." He also highlighted the positive impact of AI on their strategies, saying, "AI currently is definitely something that has a lot of positive effect." Brill emphasized the potential of Proposly, noting, "We built Proposly to be the biggest success story."

Risks and Challenges

• Continued decline in North American market performance.
• Pressure on gross margins due to increased competition.
• Dependence on successful commercialization of Proposly.
• Potential macroeconomic pressures affecting consumer spending.
• Need for ongoing investment in technology to maintain competitive edge.

Adcore's Q3 2025 results reflect both the challenges and opportunities ahead. While the current financial performance shows areas of concern, the company's strategic focus on innovation and regional growth provides a foundation for potential recovery and future success.

Full transcript - Adcore Inc (ADCO) Q3 2025:

Nick Campbell, Head of Investor Relations, Adcore: Thank you. To all our new guests who've joined, we're just waiting another moment here. Please sit tight, and we will begin momentarily. Omri, can you just confirm I got the presentation up?

Omri Brill, CEO and Founder, Adcore: All good. You're doing great.

Nick Campbell, Head of Investor Relations, Adcore: All right. Let's get started. Once again, thank you. Good morning, and thank you for joining us. Earlier this morning, Adcore released its Q3 2025 financial results. Today, we'll be walking you through those results and providing an update on ongoing company initiatives. You might see some familiar faces on the call today. You'll see myself. I'm Nick Campbell, Head of Investor Relations here at Adcore. Joining me is Omri Brill, Adcore CEO and founder, and Amit Konforty, Adcore CFO. The agenda for today, before we begin, we'll go over some forward-looking statements you should be aware of while listening to this call, followed by the CEO opening remarks, and then the CFO financial highlights. Finally, we will conclude with Q&A.

If you do have a question during this call, please use the Submit a Question feature in Zoom, and we will get to those at the end of the call. Before we begin, I will give everyone a moment to review these statements. Just please bear in mind, when you're listening to the call today, the management team might be using forward-looking statements, which are inherently uncertain in nature. All right. Very good. With that, I will pass the floor to Omri for the CEO opening remarks. Omri, the floor is yours.

Omri Brill, CEO and Founder, Adcore: Thank you, Nick, and good morning, everyone. It's our pleasure to be here today and to discuss the company results for Q3 2025 and, obviously, the nine months of 2025 as well. We have some eye-level management, I would say, comments regarding the result. Also, some new initiatives that I would like to share with our shareholders regarding what's new during the quarter. I think there's a lot to discuss, so let's dive into it and start reviewing the results. Okay. Eye-level, when we look at the Q3 2025 result, I would say a few things that are jumping to everyone's eye. We saw good growth coming from the EMEA region, up 25% year-on-year. APAC continued to grow 7% year-on-year and basically received tremendous momentum coming from this region. This is actually helping offsetting some of the softness we saw in North America.

Two regions that are moving up, one region that basically is moving down. All in all, I would say we are more or less doing okay. Another thing that was mentioned during this quarter is that we saw a significant improvement in the cost line items: R&D down 10% year-on-year, SG&A down 12% year-on-year, and actually adjusted EBITDA improved 56% year-to-date. In general, I would say when you look at the nine-month result, they are looking far sharper and give us the looking ahead of 2025 with more optimistic, I would say, one more thing that investors need to take into consideration is that the big quarter Q4 is literally happening right now. We still have a lot to show up in 2025. I think nine months looking good, 2025 compared to 2024, especially in the bottom line.

Adjusted EBITDA grew a lot, 56% in the nine months as compared to the previous nine months in 2024. There is a lot to expect from Q4 this year. Just eye-level numbers. Obviously, Amit will discuss it in more detail. Top-line revenue, CAD 7.6 million compared to CAD 7.8 million. Sorry, it's not percent. CAD 7.6 million in Q3 2025 compared to CAD 7.8 million in Q3 2024. It's a slight decrease, but I would say more or less the same. Gross profit, CAD 3.1 million in Q3 2025 compared to CAD 3.7 million in the previous year. Again, a slight decrease, but because cost went down, adjusted EBITDA is actually not too bad. When we look at quarterly gross KPIs, this is something we take into mind. I say gross profit, CAD 3.1 million. Again, you can see that it's in line with the previous quarter in 2025, and Q4 should be far stronger.

Cash and cash equivalent actually grew by 8% year-on-year. All in all, I would say more or less a solid quarter. Just to sum up quarterly highlights, EMEA revenue grew by 25% year-on-year. APAC revenue grew by 7% year-on-year. Cash and cash equivalent grew by 8%. R&D expenses actually down 10%. They represent now 6% of total revenues, 7% in the previous year. SG&A down 12%, or CAD 376,000. That is a 12% decrease year-on-year. If you look at the nine months in 2025, then we can see adjusted EBITDA almost CAD 500,000 compared to CAD 310,000 in the previous year. Up 56% year-on-year. That is a big improvement. We have a reduction in net loss in 2025 compared to 2024 from CAD 1.26 million to CAD 1.075 million in 2025. Gross margins are more or less the same, 44% this nine months 2025 compared to 45%.

R&D expenses are actually down, representing 7% of total revenue compared to 8% of total revenue. Trust me, we continue to invest heavily in technology. It is not like we took our foot from the gas. We are just doing stuff more efficiently. I think Amit will talk about it in more detail as we move along. We talk about some goals that we would like to achieve. I can say, definitely, we are on track for six straight quarters with positive adjusted EBITDA. Definitely on track to AI-driven innovation. Basically, the other goals, it is TBD, but we need to see that we have a good finishing of Q4 in order to see if we can hit these goals or not.

I would say the results tell the story, but they're telling the story of, I would say, the future of the current present of Adcore and maybe even the past because it's already happened in Q3 2025. It definitely doesn't tell the story or the full story of the future of Adcore. I think a lot of the future of Adcore is about technology and about innovation. Proposly, I would say, it's the spearhead of this effort. There's a lot going on in Proposly, and we would like to share some of it with you. Obviously, this was a big launch in Q3 2024 of two initiatives that are Proposly related. We have an all-new marketing website for Proposly and an all-new blog for Proposly as well. If you go to proposly.io, you can see the marketing website.

We can visit it in a second and have a first glimpse of it. Also, the all-new blog, a lot of interesting quotes and articles about Proposly. Let's see some examples. Let me start from the beginning. That's the new marketing website. You see there's also a different brand identity for Proposly. It looks much more modern, much more, I would say, cheerful and young. Basically, and a new slogan, "Work less, win more." Win more is basically the main slogan of Proposly. This is the goal. This is the mission: to help businesses win more clients. This is what Proposly is all about. That's obviously the hero banner. We can go down and see what you get within Proposly. Obviously, you get engaging presentation. You will get tailored proposals. You will get an add-on and upsell feature built in within the application.

You can do online signatures. You can do online payments as well from within the app. Obviously, ongoing project updates. A single link sent to your client will get all of that. The presentation, the price quote, being able to select or change their price quote and add add-ons, making online signature, approve the agreement, making a payment, and get the project update, everything within what we call the client portal. It is much more than just, let's say, a price quote or a nice PDF sent to the client. Basically, it is everything that the clients need in order to close the deal and basically support the deal. Not only closing the deal is within this client portal. That is a game changer. There is no other app on planet Earth that is offering the same value proposition. That is something that is important to know about Proposly.

We look at, let's say, an existing problem, which is one of the biggest problems of, let's say, traditional sales workflow, but come up with an all-new solution. This is like a game changer of how businesses should do workflow or sales workflow in 2025, 2026, and beyond in the era of AI. We listed some of the AI capabilities of the system as well. You can see, like we mentioned, Proposly have the team workspace, which is the business portal, more like a CRM, and the client app. This is the proposal sent to the client, but they're actually an online website. The different teams that can benefit from Proposly, whether it's leadership team, sales team, marketing team, legal team, HR, finance, all different team types that can benefit from Proposly. We listed some sample proposal made in Proposly sent to clients.

You can see an example proposal for vacation house in Greece, for example, a construction, a roofing installation in California, for example, for a family, whether it's a clinic treatment plan, aesthetic clinic, a marketing agency offering, or whether it's an Alpine ski vacation. Actually, if we have time, we can view one presentation like this. Not a presentation, a proposal sent to a client. This is like when we send it, we send a link to the client. The client gets the link, clicks on it, and this is what you're going to see. We can also decide whether you need to log in in order to see it, or can you just view it like that, or maybe log in on action. Basically, this is the intro, I would say, slide looking very nice, like who don't like skiing slope.

It looks nice by definition, I would say. When you scroll down into the presentation, you can see on the right side, you can see a summary bar with the current cost, some kind of what's included in the package, for example. You see some, let's say, gallery, image gallery from the result itself, for example, look very nice. Again, about the result, maybe the location of the hotel, the specific location of the hotel, how far away is it from the slopes. Everything you need to know about your package. Also, the agenda, for example, all of this being customized from Proposly backend. It is not like a template you need to go and basically just put the data or images or text. Everything is customizable. You can decide which slide you want to use, what slide type, what content to create.

It's like creating this type of proposal would, for somebody that knows the system, can take minutes, not hours or anything like that. It's pretty easy. We have AI to help you to do it. This is like a countdown slide. You see you have 92 days before the vacation started. It's pretty exciting. It's less than 100 days. There's a lot to wait for. Some other supporting slide. This is where it's getting interesting. We can see you can select the base package, for example. You can select whether you want it for four guests, five guests, or for six guests and different price per guest, for example. Then there's an upgrade options that you can choose whether you want to upgrade your room, health insurance maybe to add, equipment rental.

There's a lot of, let's say, or maybe ski lessons as well. Everything is baked into the system. I don't need to go out. I don't need to try to go now to rent the car from different places, rent a car or rent the gear from a different location. Everything is within the system. There's a payment summary, how much I'm going to end up paying. Obviously, if there's an agreement, I need to accept it so I can see the agreement. For the vacation, for example, everything done online. Obviously, make the payment, pay now, pay in 30 days. I can pay in installments, for example. Again, everything baked into this client portal. Q&A, for example.

All of that looked like a million dollars, but trust me, it did not cost the business that just prepared this presentation a million dollars and sent it to the client. Also, think from the business side, think from the client perspective as well. This looks nothing less than astonishing. This has been done with Proposly and is ready to send to the client for him to sign it, to view it, to sign it, to pay, to choose the upgrade, and to continue. Basically, any relationships that you would like to continue with the company can be done from this client portal. If in the future you need another edition, I can add it to the client portal and you can go ahead and pay for it, for example. Okay. The second thing that I would like to discuss is the new blog.

You can go online to blog.proposly.io. Basically, there is a lot of new content, a lot of articles that our staff wrote about Proposly. I think what should be interesting to shareholders is there are a lot of articles that compare Proposly to potential competitors. Let's say, for example, Proposly versus Annie Book or Proposly versus Qwilr, for example. You can see how Proposly is positioned, how competitors are positioned within the market, and what is the value proposition that we bring to the market as well. Very interesting. I encourage everyone to go online and start surfing the blog and see which articles they like and would like to be more educated about Proposly. I think between the marketing website, proposly.io, and the blog website, blog.proposly.io, you have a lot to learn about Proposly.

I think that's a game changer because we talked about it up until now, but now we can actually learn about it, see it yourself, see different proposals, and you get a different or better understanding about what is the true value proposition of the system. Next topic or next thing that is new in Q3 2025, we discussed in detail in the last earning call the magic that our studio can create using AI for motion videos, right? We can create motion videos that look like commercial grade. They are ready for Super Bowl, but actually cost $3,000, for example. Sorry, not $300,000 to produce them. That's a big change. That's game changing. What we did right now, we opened an all-new AI studio page under our adcore.com website.

You can go to adcore.com, go to Marketing Solution, click on AI Creative Studio, and you can see the different videos that we created for our clients, for potential clients. We continue to update this page and add more amazing videos as we move along. It does not matter almost which video you selected. Trust me, they are nothing less than amazing. That is a big, big game changer. All of them you can find online in adcore.com as well. Last but not least, of what is new in Q3 2024, actually two weeks ago, we had an event to open a community bicycle park in the south of Israel, what we call a field park that is in a kibbutz, Ruchama, in the south of Israel. Adcore was one of the initiators of this park. We donated money to this project. We have been part of this project.

Basically, we are very proud for what this project is all about. You can see this project construction undergoing in the bottom image and how beautiful it looks now that everything is ready. Over here on the left side, you can see a pump track where you can ride bicycles. On the right side, you can see an area for skateboarding. This is ready to use for the kids of this specific Kibbutz and the entire area. Again, this is part of who we are, our commitment to our communities. This is something we're very proud of. It is a moment to be proud, to be thankful that we can be part of such an amazing project as well. I know it is a big transition between talking about all this new and exciting stuff and what basically the comparables look like.

If you look at the comparable and the current share price, CAD 0.8 or 24 cents as of yesterday, I think there is a lot of upside, right? 450% almost if you look even to gross profit. Sorry, even to EBITDA, almost 100% upside. I think I did not sell single shares up until now from the time we went public, and I am still the biggest believer. I mean, Adcore is doing good, and we are doing great in the future. I think you will see that this company is not about just talking. Every day, we work very hard in building the future of this company and future for ourselves and for our shareholders to be one of the most successful technology companies out there, especially in Canada. There are not a lot of technology companies.

I think Adcore can shine in this specific market as well and be a big one or a success story about the technology company, operating from Tel Aviv as well, from Canada, from Toronto, Canada as well, and be very successful, a very big success story. I think that concluded my part, my remarks. We covered some remarks regarding the result. Like I mentioned, Q3, there are some very positive things, like the growth that we saw in, for example, the EMEA region and APAC region, like the reduce of costs as well. Nine months, if you look at nine months, it is even stronger, 56% adjusted EBITDA growth. I think that tells even a better story about 2025 and the way the company is positioned.

I think maybe the multiple thing is to understand it's not about what's happening now or even a bit in the past because it's already Q3, like was a quarter ago. It's about the future of the company, and the future of the company is bright. There's a lot of new technology development going on. I think there's a lot to be excited about in 2026. With that, I will move it to Amit. Omri. Okay. Thank you and good morning, everyone. Before beginning the financial overview, I would like to remind you that the following discussion will include GAAP financial measures as well as non-GAAP results. All amounts will be presented in CAD. In the third quarter of 2025, strong growth in EMEA, well-balanced software results in North America. Operational expenses were lower than last year, and cash level increased year over year.

The company continues to maintain a solid debt-free balance sheet. Let's review in more detail. For the three months ended September 30, 2025, we delivered revenue of CAD 7.6 million compared to CAD 7.8 million in the same period of 2024, a decrease of CAD 0.2 million or 2%. Gross profit for the three months ended September 30, 2025, was CAD 3.1 million compared to CAD 3.7 million in the prior year, a decrease of CAD 0.6 million or 16%. Gross margin for the three months ended September 30, 2025, was 40% compared to 47% in the same period last year. As for operational expenses, R&D expenses for the quarter were CAD 0.5 million compared to CAD 0.6 million in the prior year. SG&A expenses for the quarter were CAD 2.9 million compared to CAD 3.2 million in the prior year, a decrease of CAD 0.3 million or 12%.

Operating loss for the three months ended September 30, 2025, was CAD 0.3 million compared to CAD 0.1 million in the same period last year, an increase of CAD 0.2 million or 128%. This is mainly due to the decrease in gross profits. Net loss for the three months ended September 30, 2025, was CAD 0.4 million compared to CAD 0.2 million in the same period last year, an increase of CAD 0.2 million or 160%. Revenues and gross profits. Looking at the slide, we can see quarterly results show the decline, but over the nine months, we see a stabilizing trend. We anticipate that the fourth quarter and full year results will maintain the positive trend observed in prior years. In terms of geographical breakdown, as you can see from the slide, the company saw different trends across its main regions, with strong growth in EMEA offsetting a decline in North America.

This shows the value of the company's strategy and global presence, which continues to support stability and resilience across the different markets. Selling, general, and administrative expenses. SG&A expenses for the quarter were CAD 2.2 million compared to CAD 3.2 million in the same period last year, a 12% decrease year over year. For the nine months ended September 30, 2025, SG&A expenses totaled CAD 8.7 million compared to CAD 9 million in the same period of 2024. The decrease was mainly driven by lower sales and marketing expenses, including reduced referral fees. The company also continues to focus on building teams in lower-cost regions to improve overall efficiency. In terms of financial position, we had cash and cash equivalent of CAD 7.3 million as of September 30, 2025, compared to CAD 10.8 million at December 31, 2024.

Cash and cash equivalent as of September 30, 2024, were CAD 6.7 million, showing an increase of 8% year over year. Total working capital amounted to CAD 5.9 million compared to CAD 7.3 million at December 31, 2024, a decrease of CAD 1.4 million or 20%. As for the liability side of the financial position, we can see that the company is still debt-free. Adjusted EBITDA. The quarterly non-GAAP results reflect adjustments for the following items: depreciation and amortization, share-based payment, and other non-operational items. Adjusted EBITDA for the three months decreased by CAD 160,000 compared to the same period last year. When looking on the nine-month results, adjusted EBITDA increased by CAD 175,000, mainly due to a decrease in operating losses. With that, I will turn the call back to Nick. Thank you, Amit. At this time, we will move to the Q&A portion.

The first question submitted here is about APAC, which continues to post strong growth. Can you just provide some color on what's working in APAC and if you expect that to continue? Absolutely. We are very encouraged about the growth that we saw in APAC in 2025. I think that's definitely the biggest market for us today, together with EMEA. Both of these markets are showing tremendous strength. I think what we—bear in mind that outside of Israel, in terms of headcount, this is the biggest market for us. We have a big team in Australia, another team that we have in Hong Kong and in Shanghai as well. Three different teams, and we continue to see growth in this specific region. I would say mainly the reason for this growth is client acquisition, new client acquisition. That almost goes without saying.

That's, I would say, a critical component of any growth for any company. Equally important, what we call same-store growth. It means existing clients that are expanding, expanding in terms of how much they're willing to spend, but equally important, if not even more important, expanding the services that are required from Adcore, whether it's not just performance marketing, but also full-funnel marketing, branding, and awareness type of campaigns as well, studio, SEO, affiliate marketing. It is a much more holistic solution that we are now being able to supply in this specific region, and we can see it definitely in the numbers. Client acquisition, more holistic solutions. This means more budgets that we are managing and controlling. All of that is reflecting in the Q3 results that you see. Thank you, Omri.

The next question is about SG&A, which dropped significantly from CAD 3.2 million to CAD 2.85 million in the quarter. Can you provide some color on how you were able to achieve those cost savings? Yeah, I think, Amit, maybe you want to answer this one? Yeah, sure. So as I mentioned in the presentation, these cost savings are mainly due to reducing sales and marketing expenses, including referral fees. Also, in general, the company puts much more emphasis on cost savings, including hiring teams in lower-cost regions. These are the main factors. Thank you, Amit. The next question is about gross margins in Q3. They're at 40% down from 47% in Q2. Can you help investors understand the reason for the change and if you expect that to continue into Q4 and onwards? Absolutely. So a few remarks. When you look at quarterly metrics, usually they can fluctuate, right?

Because some maybe revenue can be shifted from quarter to quarter. I think as long as it's within the norms that we—the company talked about 40-50%, that we are still comfortable with it. Equally important, when you look at the nine-month result, you can see it's exactly in the middle, 44% gross margin. I think we are pretty comfortable with the result overall. We're not too alert or alert at all with the specific quarter metrics. I think, again, we need to be somewhere in the middle between 40-50%. This is where we're aiming for. If any, with time when technology revenue is going to grow, actually, we can start discussing even better gross margin, like 50% and above, and maybe ideally even more than 60%. This is once we have more robust revenue stream from technology, pure technology.

Thank you, Omri. A question regarding North America revenue. It was down 50% from the prior Q3. Can you just elaborate on the headwinds you're seeing in the region? Yeah, I would say it's mainly due to stock activity, but it's also a bit misleading because some of this stock activity actually shifted to EMEA. The same partners that we worked with that were based in North America, we are now choosing to work with partners that are located in the EMEA region. I would say, and this is part of the reason that you see a big growth coming from EMEA and a decline in North America. I think part of it is about shifting revenue from one region to another region, which is fine. It's part of doing business.

Another thing that I think is worth saying is that we believe Q4 2025 is going to mark the bottom. After Q4 2025, we can start seeing this specific region. It's an important region for us. It's actually recovering, and we expect to see actually more revenue coming from this specific region in 2026 and an uptick, not a downtick for this specific region. Very good. Thank you, Omri. The next question is, with the rise of AI drawing user traffic away from traditional search platforms like Google or Microsoft, are you seeing any of your clients expressing concerns about how to adapt their advertising strategies? How do you see opportunities to help them capitalize on the AI revolution? Absolutely. That's a fair and good question, I would say. I would say the following.

In the beginning, when OpenAI, almost two years ago, introduced ChatGPT, in the beginning, there was an alert mode for all, let's say, Google, for example, Meta, and everyone. They see it as a big, I would say, risk to their business model. If you look at, let's say, Google's latest report, that just showed the most robust report ever in the company history. Actually, AI nowadays represents to Google more opportunities than a risk. The same concept is applied to Adcore and to Adcore clients as well. I think AI can make the campaigns—it's already making the campaigns more efficient. That means every dollar spending online is actually making more revenue increase, like doing better ROI, for example. You can see the nature of, let's say, ad and creative we can generate with AI. That's a game-changing.

If before we need to spend $50,000-$100,000 to produce a video, nowadays we can spend $2,000-$3,000 and do it in a day or two. That is a game-changer. I think if I need to put everything into one formula, then I would say from one end, risk. For every risk factor that maybe AI represents, nowadays we understand it is like two to three things that are actually opportunities. The formula is working for us and not against us. I think AI currently is definitely something that has a lot of positive effect, both on Adcore clients, our ability to run advertisements more efficiently. I think, again, AI is definitely more opportunities than a risk. Thank you, Omri.

Moving on to Proposly, can you share your roadmap or the commercialization plan for Proposly in 2026 and how you expect that to contribute to Adcore's recurring revenue base? That's actually a good question, and I would answer the following. A, the roadmap says that we need to start monetizing from Proposly as early as the beginning of 2026. We expect to see the real paying clients by then. This is one, I would say, like if you look at MediaBlast, I would say it's at least two years more advanced than Proposly, then MediaBlast has been able to achieve an ARR of CAD 1 million in the first year. We expect nothing less from Proposly. I think it's still a bit too early. We need to see that everything is working as planned. There's good market fit.

The product is, I would say, mature enough in order to do what it's supposed to do. I think at least if MediaBlast is the base, this is what we want to do as a bare minimum. Ideally, we want to even be a bigger success story. We built Proposly to be the biggest success story, overseeing MediaBlast and all the rest of the apps we ever developed. We have a lot of expectations from this app. 2026 definitely will be an interesting year for us. Thank you, Omri. That dovetails nicely into the next question about how the company is prioritizing investments between organic initiatives like Proposly or your geographic expansion and potential M&A opportunities as you look forward to 2026. Absolutely. I think we touched a bit of that before in the previous earning calls.

I mentioned that we are pretty pleased with the current geographical setups that the company has. We do not see, at least not in 2026, the company needing to expand into a new market. We are well positioned within the EMEA region. We are well positioned within the APAC region with actually two different outposts of teams, well positioned in North America, both in Canada and in the U.S. as well. I think that gives us a good coverage of the entire world. This is with regards to geo-expansion. With regards to continuing investment in R&D, I would say the following. Again, I would use MediaBlast as an example because we can definitely see that after two years that MediaBlast was fully deployed and launched, we can definitely see that investment in terms of pure R&D is going down, maybe 50%, maybe even a bit more.

Actually, operational was going up because there are more clients, there is more need to serve them and stuff like that. This is offsetting a bit by earning coming from the application as well. I think if I need to look at Proposly, maybe not one year ahead, but maybe two years ago, then probably we can start looking at reducing some R&D-related costs. Again, probably we are going to should have more operational-related costs as well, but also come with earnings as well and MRR and ARR, which is the best type of earning we can make. I think all in all, there is a lot to look for in the future, 2026 and beyond, coming from the technology pipeline that the company currently has. Very good. Thank you, Omri. With that, that concludes our Q&A session.

I want to take a moment to thank Omri and Amit for your comments, but of course, you, our investors and guests, for attending the call. Omri, I'm going to pass it back to you for any parting thoughts. No. Again, we want to thank everyone that participated in today's earning calls. It was our pleasure to discuss the numbers for Q3 2025 and the nine months for 2025. I think all in all, like Amit showing his graph, if you look at the nine months, numbers look solid. Top line, midline, even bottom lines that improve a lot in 2025 compared to 2024. Bear in mind that the best quarter is still in front of us, which is Q4. Again, solid start, I would say, of 2025 compared to 2024 and the biggest quarter of.

We should definitely look optimistic about what is ahead of us. I think equally important, quarterly results only tell you the story about what we have in right now, what was the present. It does not tell you a lot about the future. I think the future of the company is bright. There is a lot going on in the technology side of the company. Proposly should go big in 2026. Maybe not mega big because we are still launching. I do not want to overblow the expectation. We should still definitely monetize Proposly in 2026. I think you can see it for yourself. See what we build, see how we are investing in the company future. Investing in the company future is investing in our own future and shareholding futures as well. That is the most important thing.

We're just not doing just for the sake of investing as an investment. We do it in order to make our life better and the investor life more happy about the values they can get from having or holding Adcore shares as well. That concludes my part of today's remarks. Thank you again, Omri. Thank you all to our guests who joined the call today. We look forward to providing you an update after Q4. Thank you all again and be well. Thank you. Thank you.

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