Victory Square Technologies Reports Q2 2025 Results Highlighted by Revenue Growth, Profitability, and Portfolio Momentum

Key Highlights:

• Six-Month Adjusted Revenue: $13.9M (+33% YoY)

• Hydreight: Third Consecutive Profitable Quarter

• Insu: Advancing Oral Insulin Toward Clinical Milestones

• Pawsible: Fund and Incubator Launching Fall 2025

• Exploring Share Buybacks to Reduce NAV Discount

Vancouver, British Columbia--(Newsfile Corp. - August 29, 2025) - Victory Square Technologies Inc. (CSE: VST) (FSE: 6F6) ("Victory Square" or the "Company"), a venture builder that provides investors with access to a diverse portfolio of next-generation technology companies, today announced its financial results for the second quarter ended June 30, 2025, and provided a corporate update on its portfolio companies and strategic initiatives.

Q2 2025 Financial Highlights

For the six months ended June 30, 2025:

• Adjusted Revenue: $13.87 million, up from $10.97 million in the first half of 2024.

• Revenue: $9.92 million, compared to $7.99 million in the first half of 2024.

• Gross Margin: $3.43 million, versus $3.30 million in the first half of 2024.

• Adjusted EBITDA: $463 thousand, compared to a loss of $1.59 million in the first half of 2024.

For Q2 2025 (three months ended June 30, 2025):

• Adjusted Revenue: $7.35 million, compared to $5.92 million in Q2 2024.

• Revenue: $5.38 million, compared to $4.43 million in Q2 2024.

• Gross Margin: $1.93 million, versus $1.89 million in Q2 2024.

• Adjusted EBITDA: $829 thousand, compared to a loss of $1.03 million in Q2 2024.

Portfolio: Victory Square maintains 25+ portfolio companies across digital health, AI, gaming/immersive, climate tech, and pet wellness.

Portfolio & Strategic Highlights

Hydreight Technologies (TSXV: NURS) (OTCQB: HYDTF) (FSE: SO6) - VST Ownership ~58%

Hydreight continues to be the Company's leading growth engine. Key developments in Q2 included:

• 33% YoY revenue growth in H1 2025, with Hydreight delivering its third consecutive quarter of profitability.

• Expansion of the VSDHOne platform, which processed over 42,000 pharmacy SKU orders in June-July alone, on track to surpass internal summer order targets.

• Launch of personalized genetic testing & wellness solutions, broadening its offering beyond GLP-1 weight-loss treatments.

• Formation of an in-house marketing agency subsidiary to support growth and address partner demand.

• Initiation of analyst coverage from Maxim Group and Beacon Securities.

• Strengthened capital position through a $10 million convertible debenture financing at a 25% premium to market ($4.06/share conversion) with a forced conversion feature.

Insu Therapeutics (VST Ownership ~22.8%)

Insu Therapeutics is developing a patent-pending oral insulin tablet intended to provide an alternative to daily injections for people living with diabetes. Its buccal delivery system is designed to mimic natural insulin absorption through the inner cheek and liver. Early preclinical trials have demonstrated insulin uptake comparable to injections, with improved liver targeting.

• Industry Context: According to the International Diabetes Federation, more than 500 million people worldwide are living with diabetes today, a figure projected to reach 783 million by 2045. The global diabetes therapeutics market is forecast to grow to USD $118 billion by 2032, according to Market Research Future.

• Next Steps: Insu is pursuing an FDA 505(b)(2) regulatory pathway, which offers a faster, lower-cost approval route by leveraging existing safety and efficacy data. First-in-human trials are targeted to begin in 2026.

• Leadership:

  • Dr. Anubhav Pratap-Singh - CEO & Co-Inventor, Professor at UBC with 100+ published papers.

  • Ammad Shorbaji - COO, former senior executive at Sanofi with 25 years of regulatory and product development experience.

  • Dr. Tom Elliott - Medical Director, practicing endocrinologist with extensive clinical and academic credentials.

Strategic Rationale: For Victory Square, Insu represents an opportunity to participate in the development of a potential oral insulin breakthrough. If successful, Insu's oral insulin program represents an opportunity to address an important unmet need in diabetes care, a market projected to grow significantly over the coming years.

Pawsible Ventures (VST Ownership ~49%)

Pawsible Ventures is in the early stages of developing solutions at the intersection of pet wellness, telehealth, and AI — a sector that mirrors trends in human healthcare and is experiencing significant growth.

• Industry Context: According to Grand View Research, the global pet care market is expected to reach $368 billion by 2030, with U.S. pet spending exceeding $150 billion in 2024 (APPA).

• Early Traction: Since announcing Pawsible Ventures, the team has engaged with 25+ early-stage pet health companies across categories such as AI-powered practice management software, emotional wellness & companionship tools, and innovative pharmaceuticals and therapeutics.

• Strategic Approach: Pawsible is building synergies with Hydreight and VST's distribution ecosystem, enabling "plug-and-play" scaling opportunities for the startups it supports. Initial market reception has been positive, with early LinkedIn activity generating 7,000+ impressions and inbound interest from founders and partners.

• Ecosystem Development: Current initiatives include:

  • Partnership discussions with venture funds, academic institutions, and strategic industry players.

  • Exploring in-house concept development where unmet needs exist in veterinary care.

  • Building an advisory network of veterinarians, operators, and investors to provide hands-on support.

• Leadership: The company is led by Alex Chieng, an experienced founder who previously built Vetsie, a telemedicine and AI-enabled veterinary care platform acquired by a U.S.-based veterinary group. Recently, Chieng won the world's largest AI hackathon organized by Bolt, underscoring his technical expertise and track record of innovation.

Next Steps: Pawsible is on track to announce the full structure of its fund and incubator program in early fall, including the unveiling of its first cohort of incubated companies.

According to Alex Chieng, CEO of Pawsible Ventures: "Pet health continues to grow rapidly, but many early-stage founders face barriers to accessing capital and infrastructure. Pawsible aims to help address these gaps by connecting startups with resources to support their development."

Capital Allocation

In addition to funding portfolio growth, Victory Square is actively exploring share buyback strategies and other capital allocation measures as part of its commitment to reduce the NAV discount and drive long-term shareholder value.

Management Commentary

"Q2 2025 was another quarter of execution and momentum across our portfolio, highlighted by Hydreight's continued growth and profitability," said Shafin Diamond Tejani, CEO of Victory Square. "Our model provides investors with diversified exposure to high-growth sectors like digital health, AI, and pet wellness, all through one publicly listed vehicle. Looking ahead, we remain focused on scaling our portfolio, pursuing strategic M&A, and unlocking shareholder value — including the potential implementation of a share buyback program."

Looking Ahead

• Hydreight's VSDHOne momentum continues to build, with management expecting record order throughput in H2 2025.

• Insu Therapeutics is advancing development of its oral insulin tablet and preparing for its next phase of preclinical and regulatory milestones, with first-in-human trials targeted for 2026.

• Pawsible Ventures is on track to announce the fund and incubator program in early fall, including the unveiling of its first cohort of incubated companies.

• Upcoming investor conferences where VST and its portfolio companies will be featured:

  • CEM Muskoka (Sept 26-28)

  • SmallCap Discoveries (Sept 29-30)

  • Planet MicroCap Showcase (Oct 21-23)

Upcoming Investor Webinar

Victory Square will host an Investor Webinar on Thursday, September 4, 2025, from 11:00 p.m. to 12:00 p.m. PDT to provide an update on the Company, share upcoming catalysts, and address investor questions through a live Q&A.

Registration link:

https://zoom.us/webinar/register/WN_Nc4H-izhSp-JOKih4zaz_w#/registration

Outlook for 2025

"As we move into the second half of 2025, our priorities are execution and discipline," said Shafin Diamond Tejani, CEO of Victory Square. "We will continue to support Hydreight's growth as it scales its platform nationally and expands into new verticals, while advancing Insu Therapeutics toward its next regulatory and clinical milestones. At the same time, Pawsible Ventures is preparing to launch its fund and incubator program, creating a new growth channel in the fast-expanding pet health sector. We remain committed to exploring strategic options for capital allocation, including potential share buybacks, while monetizing non-core assets to reinvest in the businesses we believe will deliver the strongest long-term shareholder value and help close the gap between NAV and market value."

Victory Square thanks its shareholders for their continued support and invites investors to access the Q2 2025 filings on SEDAR+.

On behalf of the Board of Directors,

Shafin Diamond Tejani
Chairman & CEO, Victory Square Technologies Inc.
www.victorysquare.com

ABOUT VICTORY SQUARE TECHNOLOGIES INC.

Victory Square is a Venture Builder that provides investors a liquid way to invest in early-stage technology companies without buying a venture fund that requires accredited investor status or multi-year commitments.

• A diverse portfolio of 25+ innovative companies from around the world (founders come from: Ireland, Sri Lanka, Bulgaria, Australia, India, Brazil, the Middle East and North America)
• Sectors include: Digital Health, Artificial Intelligence (AI), Machine Learning (ML), Blockchain/Web3, Virtual & Augmented Reality (VR/AR), Gaming, Climate Tech
• Owner-operated (approx. 15% Management Ownership)

Business Model:

The Victory Square business model is to buy, build and invest in early stage tech companies. We spend upwards of 48 months with those companies until they're ready to spin-off or stand on their own. There are a couple of unique elements to our business model…

1. We have unparalleled access to startups through our internal incubator and International network with over 250+ founders, investors, tech accelerators and venture capital firms from more than 60 countries.
2. Second, our management team and advisors are actively involved in our investments from incubation through monetization, providing them with financial, operational, and strategic support to scale globally.
3. We drive value by monetizing investments and reinvesting the gains in new innovations. The strategy was to build a self-sustaining business.

VST is a publicly-traded company headquartered in Vancouver, Canada, and listed on the Canadian Securities Exchange (VST), Frankfurt Exchange (6F6) and the OTC Pink (VSQTF).

For more information, please visit www.victorysquare.com.

Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is generally identifiable by the use of words such as "believes," "may," "plans," "will," "anticipates," "intends," "could," "estimates," "expects," "forecasts," "projects," and similar expressions, as well as their negative forms. All statements in this release, other than statements of historical fact, are forward-looking information, including but not limited to statements regarding:

• the Company's future plans, objectives, and strategies;

• expectations regarding the performance and growth of portfolio companies, including Hydreight Technologies, Insu Therapeutics, and Pawsible Ventures;

• the expected impact of new products, services, and strategic initiatives;

• Hydreight's growth, margins, VSDHOne order volumes, and other financial metrics in 2025;

• anticipated clinical and regulatory milestones for Insu Therapeutics;

• the development and launch of Pawsible Ventures' fund and incubator program; and

• potential capital allocation measures, including share buybacks and monetization of non-core assets.

Forward-looking information reflects management's current expectations, estimates, and projections concerning future events and operating performance, based on opinions and assumptions considered reasonable at the time such statements are made. These assumptions include, but are not limited to: the ability of portfolio companies to execute their business models as planned, regulatory approvals being obtained when expected, general economic and industry conditions remaining stable, and access to capital on reasonable terms.

Forward-looking information is subject to known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied. Key risks include, without limitation: changes in general economic, business, and political conditions; changes in financial markets; risks related to government regulation and compliance; risks related to product development, clinical trials, and commercialization; reliance on key personnel; risks associated with competition; the availability of financing; and those factors disclosed in the Company's publicly filed documents under its profile on SEDAR+.

There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated. Readers are cautioned not to place undue reliance on forward-looking information. All forward-looking information in this release is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update such information to reflect future results, events, or developments, except as required by law.

¹See "Use of Non-GAAP Financial Measures" in the Company's MD&A for reconciliations of Adjusted Revenue and Adjusted EBITDA.

Use of Non-GAAP Financial Measures

This release contains references to non-GAAP financial measures Adjusted Revenue and Adjusted EBITDA. The Company defines Adjusted Revenue as gross cash income before adjustments for the deferred portion of business partner setup, license, and sponsorship fees and gross and accrued receipts from blockchain grant funding. The Company defines Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization and before (i) transaction, restructuring, and integration costs and share-based payments expense, and (ii) gains/losses that are not reflective of ongoing operating performance including inventory impairment. The Company believes that the measure provides useful information to its shareholders and investors in understanding the Company's 2023 operating cash flow and may assist in the evaluation of the Company's business relative to that of its peers more accurately than GAAP financial measures alone. This data is furnished to provide additional information and does not have any standardized meaning prescribed by GAAP. Accordingly, it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and is not necessarily indicative of other metrics presented in accordance with GAAP.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/264588