Everyday People Financial Reports 40% Year-over-Year Q2 Revenue Growth Driven by RCM Expansion and Strategic EP Homes Program Shift and Strengthens Balance Sheet in Q2 2025

Edmonton, Alberta--(Newsfile Corp. - August 14, 2025) - Everyday People Financial Corp. (TSXV: EPF) (OTCQB: EPFCF) ("Everyday People" or the "Company"), a technology-driven financial services provider, today announced its financial results for the three and six months ended June 30, 2025, highlighted by a 40% increase in Q2 revenue to $22.1 million compared to $15.8 million in Q2 2024. Six-month revenues rose 30% year-over-year to $39.8 million. The quarter reflected continued momentum in the Company's Revenue Cycle Management ("RCM") segment, and disciplined execution of its capital-light business strategy.

"Our Q2 results underscore the power of our diversified business model," said Gordon Reykdal, Executive Chairman of Everyday People. "With the successful integration of the acquisition of Commercial Collection Services Limited ("CCS") into our RCM platform and the pivot of EP Homes to the Borrowed Down Payment Program ("BDPP"), we are building recurring, capital-light revenue streams while preserving balance sheet strength. This positions us for sustained growth into the second half of 2025 and beyond."

Key Financial Highlights for the Three Months Ended June 30, 2025

Revenue: $22.1 million in Q2 2025, up 40% from $15.8 million in Q2 2024.

• $5.4 million increase from RCM services, primarily from the CCS acquisition and organic client growth.
• $1.6 million increase from EP Homes, driven by higher home sales (7 versus 5 in Q2 2024).
• $0.7 million decrease in Financial Services revenue due to an accounting policy change for supply chain operations.
• Six-month revenue: $39.8 million, up 30% year-over-year.

Profitability:

• Net income of $0.8 million for Q2 2025 up from $0.1 million for the same period in 2024.
• Net income of $1.6 million for the first half of 2025 up from $0.9 million for the same period in 2024.

Operating Cash Flow:

• $6.2 million cash provided by operating activities in the first half of 2025, up from $2.3 million for the same period in 2024.

Balance Sheet Strength:

• Total assets increased to $73.0 million (December 31, 2024: $63.9 million).
• Shareholders' equity more than doubled to $16.1 million (December 31, 2024: $6.3 million).

Adjusted EBITDA:

• $2.2 million for Q2 2025 as compared to $2.4 million for the same period in 2024.
• $4.3 million for the six months ended June 30, 2025 as compared to $5.5 million for the same period in 2024.

Adjusted Net Working Capital:

• As at June 30, 2025, current liabilities include $2.1 million (December 31, 2024 - $2.7 million) of certain suspense and overpayment provisions from the RCM business lines. However, based on historical analysis, the Company believes it is highly unlikely that the vast majority of these amounts will be paid. While these provisions are included in the reported net working capital in the financial statements, the Company does not expect these obligations to impact its future cash flows. Therefore, as at June 30, 2025, the Adjusted Net Working Capital deficiency is $1.9 million, as compared to Adjusted Net Working Capital deficiency of $8.6 million as at December 31, 2024.

Looking Forward

"Everyday People had an exceptionally strong start to the year and remain focused on advancing its capital-light business model and executing on a disciplined acquisition strategy." said Gordon Reykdal, Executive Chairman of Everyday People. "We have a passionate and experienced team of operators delivering on the Company's vision."

About Everyday People Financial Corp.

Everyday People Financial Corp. is a technology-driven financial services company with a mission to help individuals and businesses manage money better. First established in 1988, we have a workforce of over 650 people operating in the United Kingdom and Canada providing fully fee-for-service solutions across two business pillars operating in Canada and the United Kingdom.

Revenue Cycle Management (RCM), which helps organizations recover receivables and streamline billing processes without purchasing consumer debt, and Financial Services, which provides digital tools and credit access programs that support Canadians on their financial journey, all without lending money.

Founded on the belief that everyone deserves a second chance to rebuild financial health and wealth, the Company is committed to providing affordable, innovative, and responsible financial solutions that create lasting value for our clients, customers, and shareholders.

We are changing the way people manage money by enhancing our client and consumer services with our own affordability assessment programs with specialized financial products and literacy programs. We're helping everyday people rebuild their financial health for generational wealth. We stand for creativity and entrepreneurship. Our combination of companies, products and services has been established to ensure we can fulfill consumers' financial needs and service them in a low-cost and effective manner.

Financial Statements & Management's Discussion and Analysis

This news release should be read in conjunction with Everyday People's consolidated financial statements and "Management's Discussion and Analysis" report for the six months ended June 30, 2025, which have been posted under the Company's profile on SEDAR+ at www.sedarplus.ca.

Non-IFRS Financial Measures

This news release makes reference to certain non-IFRS financial measures, including Adjusted EBITDA, and Adjusted EBTDA.

"Adjusted EBITDA" is not a recognized measure under IFRS and does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. "EBITDA" means earnings before finance and interest costs, provision for income tax and amortization and depreciation expenses. "Adjusted EBITDA" is calculated as adding back the share-based compensation, depreciation and amortization expenses, other expenses (income) and other non-operating expenses (income) management considers not directly related to operational performance of the period presented.

"Adjusted EBTDA" is not a recognized measure under IFRS and does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. "EBTDA" means earnings before finance excluding interest costs, provision for income tax and amortization and depreciation expenses. "Adjusted EBTDA" is calculated as adding back the share-based compensation, depreciation and amortization expenses, other expenses (income) and other non-operating expenses (income), and excludes interest costs in the calculation, management considers not directly related to operational performance of the period presented.

"Adjusted Net Working Capital" is not a recognized measure under IFRS and does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. "Net Working Capital" is calculated as current assets less current liabilities. "Adjusted Net Working Capital" is calculated as current assets less current liabilities and excludes certain items that the Company believes do not reflect the Company's ongoing operational performance or expected future cash obligations.

Adjusted EBITDA, Adjusted EBTDA, and Adjusted Net Working Capital are used as non-IFRS financial measures to provide investors with a supplemental measure of the Company's operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial 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, prepare annual operating budgets and assess the Company's ability to meet its capital expenditure and working capital requirements.

Non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of the Company's results under IFRS. There are a number of limitations related to the use of non-IFRS financial measures versus their nearest IFRS equivalents. Investors are encouraged to review the consolidated financial statements as at and for the six months ended June 30, 2025 and June 30, 2024, and disclosures in their entirety and are cautioned not to put undue reliance on any non-IFRS financial measure and view it in conjunction with the most comparable IFRS financial measures. In evaluating these non-IFRS financial measures, please be aware that in the future the Company will continue to have the adjustment similar to those adjusted in the presented period.

For more information visit: www.everydaypeoplefinancial.com.

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain "forward-looking statements" or "forward-looking information" (collectively referred to hereafter as "forward-looking statements") under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to financial performance, and key financial metrics, results of operations, integration of the acquired businesses, and the business, plans, strategy and operations of the Company. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, expectations and assumptions concerning the Company and the acquired businesses as well as other risks and uncertainties, including those described in the documents filed by the Company on SEDAR+ at www.sedarplus.ca. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/262603