Toronto, Ontario--(Newsfile Corp. - May 20, 2026) - RIWI Corp. (TSXV: RIWI) (OTC: RWCRF) (the "Company" or "RIWI"), a market research platform, global trend-tracking and prediction technology firm, reported its financial results for the three months ended March 31, 2026. All figures are reported in U.S. dollars unless otherwise indicated. RIWI's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").
RIWI highlights for the three months ended March 31, 2026 – in US Dollars:
- RIWI earned $820,503 in revenues in the quarter ending March 31, 2026 compared to $1,568,270 for the quarter ended March 31, 2025, a decrease of 47.7%. The Company's revenue consisted of $442,453 in transaction revenue, $106,177 in recurring revenue and $271,873 in project-based revenue. RIWI also recorded a net loss of $526,795 and an operating loss of $453,844 for the period as compared to a net loss of $345,766 and an operating loss of $321,260 for the quarter ending March 31, 2025.
- The revenue decline in the first quarter of 2026 was the result of several factors including the non option year renewal of a long term confidential contract that will impact RIWI's recurring revenue on a go-forward basis, seasonality in the CPG business which is expected to rebound in year and declines in the transaction business because of supply constraints which is expected to level out and begin growing again by the third quarter of 2026. Overall, the macro-economic environment for market research was a challenge in Q1, but management is optimistic that business will improve in future quarters which should improve operating results on a go-forward basis.
- On April 17, 2026, RIWI welcomed James Bowen, Al Leong and Marc Kazimirski to RIWI's Board of Directors. These individuals bring significant experience in artificial intelligence, marketing, legal affairs and capital markets that align closely with the company's strategic priorities for 2026 and beyond. At the same time, Annette Cusworth, Neil Seeman and David Kincaid stepped down from the Board.
- As noted on the press release dated April 6, 2026, RIWI closed a private placement in the quarter ended March 31, 2026 for an aggregate issuance value of $2,496,666 CAD. Management expects the private placement will provide RIWI additional liquidity and working capital to achieve its next phase of growth.
- RIWI signed 145 customer contracts in the quarter ended March 31, 2026, including 17 new RIWI customers, reflecting continued demand across its solutions. The bulk of the new customer contracts came from RIWI's ad hoc audience business unit where RIWI experienced strong demand for its audience. This growth caused operational and product issues where RIWI could not fulfill all of the demand which resulted in several contracts not being fulfilled or only partially filled. RIWI has been working diligently on its platform and processes and has hired additional staff to ensure demand can be better filled in the second half of Q2.
- As noted above, RIWI experienced significant growth in its ad hoc audience business in the first quarter of 2026. In order to capitalize on the incoming demand, RIWI hired a new VP of Sales for the audience business unit, a sample bidder and two additional project managers that are all expected to drive revenue growth on a quarter by quarter basis. In addition, RIWI's product team delivered several new enhancements to its proprietary operating platform that are expected to drive time and effort efficiencies in subsequent quarters.
- RIWI made significant progress on its AI-powered platforms and now anticipates the release of its award-winning platform, CoolTool 2.0, and its anti-fraud solution to be released by the end of the second quarter of 2026. These new solutions are expected to generate additional subscribers to the RIWI platform starting in the third quarter of 2026 and will provide innovative features such as system verified age and gender based on a user's camera, survey generation based on a project brief and the ability to conduct a research project up to 80% faster than in the past.
"Our first quarter was impacted by the non-renewal of a significant recurring revenue contract, which materially affected year-over-year revenues comparison," said Greg Wong, CEO of RIWI. "At the same time, we saw strong underlying demand for our human-verified audience business, including a record number of customer contract wins during the quarter.
"Over the past year, RIWI has transitioned away from several legacy customer verticals and toward newer customer segments where management believes the Company has stronger product-market fit and long-term growth potential. As a result, the Company's financial results currently reflect both the decline of certain legacy revenue streams and continued investment into scaling these newer business lines. Management believes Q1 2026 should represent the low point for the business from a revenue perspective, with expectations for incremental improvement throughout the balance of 2026 as operational initiatives, customer growth and upcoming technology releases continue to gain traction, including the launch of RIWI's anti-fraud solution, VerifyHuman, and the next major release of its CoolTool platform featuring new AI-powered functionality. Management's focus remains on rebuilding higher-quality recurring revenue streams and progressing the business toward improved profitability by the end of 2026."
| RIWI CORP. | ||||||
| Condensed Consolidated Interim Statements of Loss and Comprehensive Loss | ||||||
| For the three months ended March 31, 2026 and 2025 | ||||||
| (Unaudited and expressed in U.S. dollars) | ||||||
| Three months ended | ||||||
| March 31 | ||||||
| 2026 | 2025 | |||||
| Revenues (Note 7) | $ | 820,503 | $ | 1,568,270 | ||
| Operating expenses | ||||||
| General and administrative (Note 8) | 337,118 | 479,149 | ||||
| Operations (Note 8) | 707,771 | 1,040,884 | ||||
| Technology costs (Note 8) | 117,419 | 174,498 | ||||
| Sales and marketing (Note 8) | 112,039 | 194,999 | ||||
| Total operating expenses | 1,274,347 | 1,889,530 | ||||
| Operating loss before other income | (453,844 | ) | (321,260 | ) | ||
| Other income/(expense) | ||||||
| Interest income | 5 | 1,320 | ||||
| Interest expense | (64,968 | ) | (30,740 | ) | ||
| Other expenses | (7,988 | ) | (11,053 | ) | ||
| Total other income | (72,951 | ) | (40,473 | ) | ||
| Net loss before income taxes | (526,795 | ) | (361,733 | ) | ||
| Income tax recovery/(expense) | - | 15,967 | ||||
| Net loss and comprehensive loss for the period | $ | (526,795 | ) | $ | (345,766 | ) |
| Net loss per share | ||||||
| Basic and diluted | $ | (0.03 | ) | $ | (0.02 | ) |
| Weighted average number of common shares outstanding | ||||||
| Basic and diluted | 20,902,132 | 18,004,428 | ||||
| RIWI CORP. | ||||||
| Condensed Consolidated Interim Statements of Financial Position | ||||||
| As at March 31, 2026 and December 31, 2025 | ||||||
| (Unaudited and expressed in U.S. dollars) | ||||||
| March 31, 2026 | December 31, 2025 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 1,720,634 | $ | 551,356 | ||
| Accounts receivable (Note 11(a)) | 898,126 | 1,128,344 | ||||
| Unbilled revenue (Note 7(b)) | 54,540 | 61,042 | ||||
| Prepaid expenses and other assets | 43,427 | 51,767 | ||||
| Total current assets | 2,716,727 | 1,792,509 | ||||
| Property and equipment | 14,581 | 13,997 | ||||
| Intangible assets (Note 4) | 1,083,080 | 1,156,816 | ||||
| Goodwill (Note 4) | 99,092 | 99,092 | ||||
| Total assets | $ | 3,913,480 | $ | 3,062,414 | ||
| Liabilities | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 803,005 | $ | 952,999 | ||
| Acquisition holdbacks payable | 104,989 | 104,989 | ||||
| Deferred revenue (Note 7(b)) | 277,538 | 253,742 | ||||
| Notes payable (Note 5) | 46,245 | 67,394 | ||||
| Total current liabilities | 1,231,777 | 1,379,124 | ||||
| Long-term liabilities | ||||||
| Long-term portion of notes payable (Note 5) | 1,223,314 | 1,539,428 | ||||
| Total liabilities | 2,455,091 | 2,918,552 | ||||
| Shareholders' equity | ||||||
| Share capital (Note 6) | 6,579,457 | 5,085,404 | ||||
| Contributed surplus (Note 6) | 3,246,767 | 3,184,159 | ||||
| Warrant reserve (Note 6) | 284,661 | - | ||||
| Accumulated deficit | (8,652,496 | ) | (8,125,701 | ) | ||
| Total shareholders' equity | 1,458,389 | 143,862 | ||||
| Total liabilities and shareholders' equity | $ | 3,913,480 | $ | 3,062,414 | ||
Issuance of Stock Options
RIWI has granted 125,000 stock options ("Options") to JT Pacific Capital Partners Corp. pursuant to the capital markets advisory and investor relations services advisory agreement announced on April 6, 2026. The Options are exercisable at a price of CAD $0.32 per share and expire on May 20, 2031, and are subject to the terms of the Company’s stock option plan.
About RIWI
RIWI is a market research platform and global trend-tracking and prediction technology firm. On a monthly or annual subscription basis, RIWI offers its clients tracking surveys, continuous risk monitoring, predictive analytics and ad effectiveness tests in all countries. https://riwi.com
RIWI CORP.
Signed: "Greg Wong"
Greg Wong, Chief Executive Officer
For more information, please contact investors@riwi.com or call 1-833-FOR-RIWI (367-7494)
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTION REGARDING FORWARD-LOOKING INFORMATION:
Information and statements contained in this news release that are not historical facts are "forward-looking information" within the meaning of Canadian securities legislation that involves risks and uncertainties. Forward-looking information included herein is made as of the date of this news release and RIWI does not intend, and does not assume any obligation, to update forward-looking information unless required by applicable securities laws. Forward-looking information relates to future events or future performance and reflects management of the Company's expectations or beliefs regarding future events. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/298288
Source: RIWI Corp.