Toronto, Ontario--(Newsfile Corp. - August 25, 2026) - Yangaroo Inc. (TSXV: YOO) ("Yangaroo" or the "Company"), a software leader in media asset workflow and distribution solutions, today announced its financial results for the second quarter ended June 30, 2026. The second quarter financial statements and corresponding management's discussion and analysis (the "Second Quarter Filings") are available on Yangaroo's website at www.yangaroo.com and under the Company's profile on SEDAR+ at www.sedarplus.ca. All amounts are stated in United States dollars unless otherwise noted.
In the second quarter ended June 30, 2026, revenue was $2,162,823, an increase of $511,382, or 31%, year over year. The significant increase was driven primarily by the strong performance and higher revenue from the Company's Advertising Division, reflecting increased political advertising activity ahead of the U.S. midterm elections, increased automotive advertising activity, and advertising activity associated with the FIFA World Cup. The Entertainment Division also delivered solid growth, supported by higher music delivery volumes and increased awards revenue following the successful onboarding of two new fan vote award programs. The Company maintained strong operational service levels throughout the quarter, successfully onboarded new clients, and continued expanding its U.S. and Canadian broadcast clearance services ("Clearance") platform and service capabilities while maintaining operational efficiencies.
For the three months ended June 30, 2026, the Company reported operating income of $421,085 and Normalized EBITDA of $699,347, compared with an operating loss of $18,777 and Normalized EBITDA of $220,909 for the same quarter of 2025.
For the six months ended June 30, 2026, the Company reported operating income of $418,956 and Normalized EBITDA of $956,953 compared with an operating income of $5,747 and Normalized EBITDA of $485,160 for the same period of 2025.
Grant Schuetrumpf, President and CEO of Yangaroo, commented, "Our second-quarter performance reflects the strength of Yangaroo's operating model and our ability to convert increased client activity into profitable growth. Our sixteenth consecutive quarter of positive Normalized EBITDA demonstrates the consistency and resilience we have established across the business.
"The Advertising Division continues to benefit from increased political advertising activity ahead of the U.S. midterm elections, together with increased activity across other key industry sectors. The advertising market is also becoming increasingly complex as brands and agencies manage campaigns across linear television, streaming, and digital channels. We see a meaningful opportunity for Yangaroo to address that complexity through a unified combination of technology and managed services.
"Our continued investment in Clearance services across the United States and Canada is building momentum as we expand our expertise, client relationships and integrated platform capabilities. By bringing Clearance, asset management, and distribution together within a more unified workflow, we are seeking to become more deeply embedded in our clients' operations while creating additional recurring revenue opportunities. We remain disciplined in balancing these investments with operational performance and liquidity.
"Our Entertainment Division also performed well during the quarter. The Awards continues to generate stable, recurring revenue through long-standing client relationships, while creating additional growth opportunities through expanded services such as fan-voting capabilities. The successful onboarding of two new fan-voting programs during the quarter demonstrates our ability to extend the platform beyond traditional submission and adjudication workflows.
"In Music, increased audio delivery volumes supported year-over-year growth, and the return of music video programming at a significant broadcaster creates an additional opportunity to increase our video distribution activity. We are also continuing to develop strategic industry relationships that can broaden the reach and capabilities of the Music platform.
"Across all divisions, our focus remains consistent: expand key customer relationships, increase the value delivered through our technology and services, and pursue growth opportunities that complement our existing capabilities. Yangaroo is well positioned to benefit from the growing need for secure, efficient and integrated media workflow solutions across the advertising and entertainment markets."
Q2'2026 Financial Highlights
Revenue in Q2'2026 was $2,162,823 compared to $1,651,441 and $1,733,004 in the second quarter of 2025 and the first quarter of 2026.
Revenue increased by $511,382, or 31%, versus Q2'2025. The increase in revenue was primarily driven by higher Advertising and Entertainment revenue with an increase of $443,942, or 38%, and $67,440, or 14%.
Revenue increased by $429,819, or 25%, versus Q1'2026. The increase in revenue was primarily attributed to higher Advertising revenue of $318,350 or 25%, as well as an increase in Entertainment revenue of $111,469, or 26%.
Operating expenses in Q2'2026 were $1,741,738 compared to $1,670,218 and $1,735,133 in the second quarter of 2025 and the first quarter of 2026.
Operating expenses increased by $71,520 or 4%, versus Q2'2025. The increase in operating expenses was primarily attributed to higher salary and marketing expenses, slightly offset by reductions across general and administrative expenses.
Operating expenses remained relatively consistent, increasing by $6,605 versus Q1'2026.
Sixteenth consecutive quarters of positive Normalized EBITDA:
| Fiscal Year | Q1 | Q2 | Q3 | Q4 |
| 2026 | $257,606 | $699,347 | - | - |
| 2025 | $264,251 | $220,909 | $152,906 | $589,541 |
| 2024 | $237,581 | $337,818 | $466,458 | $540,504 |
| 2023 | $116,293 | $541,952 | $266,269 | $211,061 |
| 2022 | - | - | $1,927 | $833,974 |
Normalized EBITDA in Q2'2026 was $699,347 in comparison to Normalized EBITDA of $220,909 in Q2'2025 and Normalized EBITDA of $257,606 in Q1'2026.
Normalized EBITDA increased by $478,438, or 217%, compared to Q2'2025. The increase was primarily attributed to an increase in revenue and was partially offset by an increase in operating expenses.
Normalized EBITDA increased by $441,741, or 171%, compared to Q1'2026. The increase was primarily attributed to an increase in revenue and was partially offset by an increase in operating expenses.
Financial Highlights
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | ||||||||||||||
| Cash | $ | 191,387 | $ | 213,427 | $ | 161,112 | $ | 160,165 | |||||||||
| Working Capital Deficiency | ($753,376 | ) | ($1,186,909 | ) | ($1,255,379 | ) | ($2,033,182 | ) | |||||||||
| Liquidity | $ | 667,570 | $ | 788,589 | $ | 764,301 | $ | 645,044 | |||||||||
| Revenue | $ | 2,162,823 | $ | 1,733,004 | $ | 2,100,187 | $ | 1,572,017 | |||||||||
| Operating Expenses | $ | 1,741,738 | $ | 1,735,133 | $ | 1,810,720 | $ | 1,667,626 | |||||||||
| Other Expenses (Income) | $ | 50,760 | ($39,999 | ) | ($421,426 | ) | ($166,455 | ) | |||||||||
| Income Tax Expense | $ | 16,624 | $ | 321 | $ | 36,949 | $ | 1,407 | |||||||||
| After-Tax Income (Loss) for the Period | $ | 353,701 | $ | 37,549 | $ | 673,944 | $ | 69,439 | |||||||||
| Income (Loss) per Share - Basic | $ | 0.01 | $ | 0.00 | $ | 0.01 | $ | 0.00 | |||||||||
| Income (Loss) per Share - Diluted | $ | 0.01 | $ | 0.00 | $ | 0.01 | $ | 0.00 | |||||||||
| EBITDA | $ | 685,472 | $ | 343,062 | $ | 1,080,991 | $ | 361,515 | |||||||||
| EBITDA Margin % | 31.69% | 19.80% | 51.47% | 23.00% | |||||||||||||
| Normalized EBITDA* | $ | 699,347 | $ | 257,606 | $ | 589,541 | $ | 152,906 | |||||||||
| Normalized EBITDA Margin %* | 32.33% | 14.86% | 28.07% | 9.73% | |||||||||||||
| Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | ||||||||||||||
| Cash | $ | 271,234 | $ | 217,088 | $ | 231,083 | $ | 105,906 | |||||||||
| Working Capital Deficiency | ($2,140,887 | ) | ($1,900,378 | ) | ($1,841,495 | ) | ($1,787,761 | ) | |||||||||
| Liquidity | $ | 656,059 | $ | 686,618 | $ | 717,583 | $ | 550,386 | |||||||||
| Revenue | $ | 1,651,441 | $ | 1,782,058 | $ | 2,241,659 | $ | 1,942,525 | |||||||||
| Operating Expenses | $ | 1,670,218 | $ | 1,757,532 | $ | 1,950,878 | $ | 1,593,542 | |||||||||
| Other Expenses (Income) | $ | 255,720 | $ | 152,424 | ($92,194 | ) | $ | 179,406 | |||||||||
| Income Tax Expense (Recovery) | $ | 6,671 | $ | 909 | ($97,327 | ) | - | ||||||||||
| After-Tax Income (Loss) for the Period | ($281,168 | ) | ($128,807 | ) | $ | 480,302 | $ | 169,577 | |||||||||
| Income (Loss) per Share - Basic | ($0.00 | ) | ($0.00 | ) | $ | 0.01 | $ | 0.00 | |||||||||
| Income (Loss) per Share - Diluted | ($0.00 | ) | ($0.00 | ) | $ | 0.01 | $ | 0.00 | |||||||||
| EBITDA | $ | 63,051 | $ | 158,596 | $ | 651,570 | $ | 374,900 | |||||||||
| EBITDA Margin % | 3.82% | 8.90% | 29.07% | 19.30% | |||||||||||||
| Normalized EBITDA* | $ | 220,909 | $ | 264,251 | $ | 540,504 | $ | 466,458 | |||||||||
| Normalized EBITDA Margin %* | 13.38% | 14.83% | 24.11% | 24.01% | |||||||||||||
* A non-IFRS measure. See "Non-IFRS financial measures" for definitions and reconciliation of non-IFRS measures to the relevant IFRS measures
Shares for Services
Pursuant to a previously disclosed shares for services arrangement (the "Shares for Services Arrangement") entered into between the Company and Grant Schuetrumpf, the Company will issue a total of 243,657 common shares of the Company (the "Shares") for the months of April 2026 through July 2026, as follows:
- 55,086 Shares at a price of CAD $0.04 per Share for the month of April 2026;
- 74,390 Shares at a price of CAD $0.03 per Share for the months of May 2026;
- 57,457 Shares at a price of CAD $0.04 per Share for the month of June 2026; and
- 56,724 Shares at a price of CAD $0.04 per Share for the month of July 2026.
Upon the issuance of the Shares, the Company will have issued a cumulative total of 882,979 Shares for the months of January 2025 through July 2026 under the Shares for Services Arrangement.
As Mr. Schuetrumpf is an officer and director of the Company, the issuance of the Shares under the Shares for Services Arrangement is considered a "related party transaction" under Multilateral Instrument 61-101 - Protection of Minority Security Holders In Special Transactions ("MI 61-101") and the TSXV. The Company is relying on the exemptions from the formal valuation and the minority shareholder approval requirements of MI-61-101 contained in section 5.5 (a) and Section 5.7 (1)(a) as the fair market value of the common shares being issued to insiders in connection with the Shares for Services Arrangement does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.
Subsequent Events
On August 11, 2026, the Company received a net Employee Retention Tax Credit ("ERTC") refund of $157,575, together with $32,571 of interest. The ERTC relates to a U.S. government relief program established in response to the COVID-19 pandemic. The Company submitted ERTC claims for three quarters for the year ended December 31, 2021. The refund received relates to one of these quarters, while claims relating to the remaining two quarters remain outstanding. The Company intends to apply the proceeds from the ERTC refunds against the outstanding balance under its credit facility.
About Yangaroo
Yangaroo is a technology provider in the media and entertainment industry, offering a cloud-based software platform for the management and distribution of digital media content. Yangaroo's Digital Media Distribution System ("DMDS") platform is a patented cloud-based platform that provides customers with a centralized and fully integrated workflow directly connecting radio and television broadcasters, digital display networks, and video publishers for centralized digital asset management, delivery, and promotion. DMDS is used across the advertising, music, and entertainment awards show markets.
Yangaroo Inc. is a publicly listed company incorporated on July 28, 1999, under the laws of Ontario as Musicrypt.com Inc. and changed to its present name on July 17, 2007. Yangaroo trades on the TSX Venture Exchange ("TSX-V") under the symbol YOO.
The address of the Company's corporate office and principal place of business is 360 Dufferin Street, Suite 203, Toronto, Ontario, M6K 1Z8.
# # #
For Yangaroo Investor Inquiries:
Grant Schuetrumpf
President and CEO
Ph: (416) 534 0607
investors@yangaroo.com
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 accuracy of this release.
Use of Non-IFRS Financial Measures
The following Non-IFRS definitions are used in the press release because management believes that they provide useful information regarding the Company's ongoing operations. Readers are cautioned that the definitions are not recognized measures under IFRS, do not have standardized meanings prescribed by IFRS, and should not be construed to be alternatives to revenues and net earnings determined in accordance with IFRS or as an indicator of performance, liquidity, or cash flows. The Company's method of calculating these measures may differ from the methods used by other entities and accordingly, these measures may not be comparable to similarly titled measures used by other entities or in other jurisdictions.
EBITDA as defined by the Company means Earnings Before Interest and financing costs (net of interest income), Income Taxes, Depreciation and Amortization. EBITDA is derived from the statements of net and comprehensive income (loss) and can be computed as revenues less salaries and consulting expenses, technology and production expenses, marketing and promotion expenses, general and administrative expenses, remeasurement of contingent consideration, remeasurement of embedded derivative liability, foreign exchange gain (loss), and any non-recurring items such as restructuring expenses, gain from settlement, government subsidies and acquisition fees.
Normalized EBITDA, as defined by the Company, means EBITDA adjusted for one-time non-recurring or non-cash items such as share-based compensation, restructuring fees, acquisition fees, foreign-exchange gain (loss), remeasurement of embedded derivative liability, remeasurement of contingent consideration, one-time credits, and any gains from settlement.
EBITDA Margin and Normalized EBITDA Margin as defined by the Company means EBITDA and Normalized EBITDA, respectively, as a percentage of revenue.
Working capital as defined by the Company means current assets less current liabilities.
Liquidity as defined by the Company means cash plus the available capacity in the Company's revolving credit facility.
The Company believes EBITDA, EBITDA margin, liquidity, and working capital, are useful measures because they provide information to both management and investors with respect to the operating and financial performance of the Company.
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes.
Forward-looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of Yangaroo, that may cause the actual results, level of activity, performance or achievements of Yangaroo to be materially different from those expressed or implied by such forward looking statements, including but not limited to: the use of proceeds of the offering, receipt of all necessary approvals of the offering, general business, economic, competitive, political and social uncertainties; negotiation uncertainties and other risks of the technology industry. Although Yangaroo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Yangaroo's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, Yangaroo assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/311528
Source: Yangaroo Inc.