BuildDirect Reports First Quarter 2025 Financial Results

• Delivered $0.65 million in adjusted EBITDA in Q1 2025, extending the Company's track record to 13 straight quarters of positive performance.
• Delivered gross margin of 41.3% in Q1 2025, an increase of 220 bps year-over-year.
• Working capital decreased by $0.2 million to $2.5 million at March 31, 2025 from $2.7 million at December 31, 2024.
• Opened a new Pro Center in California and completed the acquisition of key flooring assets in Florida to expand market reach in key U.S. regions.
• Company to host First Quarter 2025 financial results conference call on Friday, May 30, 2025 at 10:30 AM (PDT) / 1:30 PM (EDT).

BuildDirect reports in US dollars and in accordance with IFRS Accounting Standards.

Vancouver, British Columbia--(Newsfile Corp. - May 29, 2025) - BuildDirect.com Technologies Inc. (TSXV: BILD) ("BuildDirect" or the "Company") a leading omnichannel building material retailer, today announced its financial results for the First Quarter Ended March 31, 2025 ("Q1 2025").

"BuildDirect delivered solid financial performance in the first quarter of 2025, generating $0.65 million in adjusted EBITDA and marking our 13th consecutive quarter of positive results," said Shawn Wilson, CEO of BuildDirect. "Our gross margin of 41.3%, an increase of 220 basis points year-over-year, reflects our more efficient and higher margin core inventory profile across our businesses."

Shawn added, "We also continued to execute on our strategic growth priorities by opening a new Pro Center in California and acquiring key flooring assets in Florida to expand our footprint in key U.S. regions with strong demand fundamentals. These actions support our long-term objective of driving sustainable, profitable growth and enhancing shareholder value."

BuildDirect First Quarter 2025 Financial Results Conference Call

Date: Friday, May 30, 2025
Time: 10:30 AM (PDT) / 1:30 PM (EDT)
Live Webinar: https://us02web.zoom.us/webinar/register/WN_VuvZe3WzTSCo3a1uM_TaVw

The replay will be available approximately 24 hours after the completion of the conference call. In addition, an archived replay will be available on the Investor Relations section of the Company's website at https://ir.builddirect.com/events-and-presentations.

Among other things, the Company will discuss the long-term financial outlook on the conference call and related materials will be available on the Company's website at https://ir.builddirect.com/events-and-presentation. Investors should carefully review the factors, assumptions, risks, and uncertainties included in such related materials concerning such as the long-term financial outlook.

First Quarter 2025 Financial Highlights

A. Financial Position

The following table summarizes the Company's financial position at March 31, 2025 and December 31, 2024.

B. Financial Results

The following table summarizes the Company's selected financial results for the three months ended March 31, 2025 and 2024.

C. Revenue and Gross Profit per Segment

The Company reports results in two segments: (1) E-Commerce and (2) Pro Centers. We measure each reportable operating segment's performance based on revenue. The E-Commerce segment relates to our on-line platform while the Pro Center segment includes sales and installation revenue from bricks and mortar operations. The E-Commerce and Pro Center segments contributed 28% and 72% of the Company's revenue respectively in Q1 2025 compared to 27% and 73% of the Company's revenue, respectively, in Q1 2024.

The following table summarizes Revenue and Gross Profit per Segment for the three months ended March 31, 2025, and 2024.

D. Working Capital

E. Quarterly Financial Information

Subsequent events to Q1 2025

• On April 23, 2025, BuildDirect entered into a supply agreement valued at up to US$2 million with a North American customer in the sports, entertainment, and recreation sector to provide high-performance flooring products for use in active-use facilities.
• On May 9, 2025, BuildDirect completed a CAD$775,000 secured loan with its insider lender, Lyra Growth Partners Inc., with all proceeds used by the Company to fund loans ("Management Loans") to senior executives for the purpose of purchasing existing common shares in a private sale transaction with no new shares issued from treasury.

2025 Outlook

As part of the Company's growth strategy, BuildDirect is actively pursuing a combination of new location builds and targeted strategic acquisitions that align with its operational and financial objectives. Looking forward, BuildDirect remains committed to strengthening its geographic footprint, deepening supplier relationships, and expanding service capabilities to better serve its growing base of professional customers. BuildDirect is also focused on driving EBITDA growth through operational improvements, working capital discipline, and the continued build-out of its commercial sales channel. With a strong foundation in place and a clear path forward, BuildDirect is well-positioned to scale efficiently and capture market share in both core and emerging regions.

About BuildDirect

BuildDirect (TSXV: BILD) is an expanding omnichannel building materials retailer, specializing in Pro Centers-strategic distribution hubs designed to serve professional contractors and trades. The Company is actively scaling its footprint through a combination of organic growth and strategic acquisitions, driving efficiency and market expansion. For more information, visit www.BuildDirect.com.

Forward-Looking Information:

This press release contains statements which constitute "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"), including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. These statements reflect management's current beliefs and expectations and are based on information currently available to management as at the date hereof.

Forward-looking statements in this press release may include, without limitation, statements relating to BuildDirect being in a strong position to keep building; BuildDirect's ongoing pursuit of a model focused on growing the Pro Center network, creating operating leverage and staying disciplined on returns; the Company building or acquiring strong locations, expanding its commercial reach, and growing EBITDA through better execution; the Company's acceleration of growth through the exploration a combination of new location builds and targeted strategic acquisitions; the Company's expansion of its geographic footprint, deepening supplier relationships, and enhancing its service capabilities for professional customers; the Company's delivery of strong returns and capturing market share in both core and emerging regions; the Company's focus on driving EBITDA growth through improved operational efficiency and the continued development of its commercial sales channel; the Company being well-positioned to scale profitably while maintaining a high standard of customer service; and BuildDirect's unwavering commitment to pursue sustainable growth, operational excellence, and long-term value creation for its stakeholders.

Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. Among those factors are changes in consumer spending, inflation, availability of mortgage financing and consumer credit, changes in the housing market, changes in trade policies, tariffs or other applicable laws and regulations both locally and in foreign jurisdictions, availability and cost of goods from suppliers, fuel prices and other energy costs, interest rate and currency fluctuations, retention of key personnel and changes in general economic, business and political conditions and other factors referenced under the "Risks and Uncertainties" section of our MD&A. These forward-looking statements may be affected by risks and uncertainties in the business of the Company and general market conditions.

These factors should be considered carefully, and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release reflect the Company's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and BuildDirect assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

Reference is made in this press release to the following non-GAAP measures: Adjusted EBITDA and Working Capital. These non-GAAP measures are commonly used by investors and other interested parties to evaluate the Company's financial performance and are employed by the Company to measure its operating and economic performance and to assist in business decision-making. These non-GAAP measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. These measures are provided as additional information to complement those IFRS measures by providing further understanding of the results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the financial information reported under IFRS. Refer also to appendix tables, "Q1 2025" of this press release as well as our Management's Discussion and Analysis for definitions and reconciliations of non-IFRS measures to the nearest IFRS measures.

NON-IFRS MEASURES

This announcement refers to certain non-IFRS measures. These measures are not recognized measures under IFRS, and do not have a standardized meaning prescribed by IFRS Accounting Standards 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 Accounting Standards measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS Accounting Standards. We use non-IFRS measures including "EBITDA" and "Adjusted EBITDA". Management uses these non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and to determine components of management compensation. As required by Canadian securities laws, we reconcile these non-IFRS measures to the most comparable IFRS Accounting Standards measures in this announcement. See below regarding definitions and reconciliation of these non-IFRS measures to the relevant reported measures.

We define EBITDA as net income or loss before interest, income taxes and amortization. Adjusted EBITDA removes fair value adjustment of convertible debt and warrants, fair value adjustment of inventory, restructuring expenses, non-recurring bad debt expense, foreign exchange gains and losses, and share-based compensation items from EBITDA. We are presenting these measures because we believe that our current and potential investors, and many analysts, use them to assess our current and future operating results and to make investment decisions. Management uses these measures in managing the business and making decisions. EBITDA and adjusted EBITDA are not intended as substitutes for IFRS measures.

⁽¹⁾ EBITDA % is a ratio of EBITDA divided by Total Revenue
⁽²⁾ Adjusted EBITDA % is a ratio of Adjusted EBITDA divided by Total Revenue

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.

Condensed Consolidated Interim Statements of Financial Position
(Unaudited)
(Expressed in United States dollars)

Condensed Consolidated Interim Statements of Operations and Comprehensive Loss
(Unaudited)
(Expressed in United States dollars)

Condensed Consolidated Interim Statement of Changes in Equity (Deficiency)
(Unaudited)
(Expressed in United States dollars)

For the three months ended March 31, 2025 and 2024

Condensed Consolidated Interim Statement of Cash Flows
(Unaudited)
(Expressed in United States dollars)

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/253787