Completed the acquisition of Oso Cloud for approximately $1.9 million in cash consideration
Expands Tiny's enterprise software presence with approximately $5.3 million in annualized recurring revenue ("ARR")1
Increases Tiny's ARR ~7.6% from $70.0 million to approximately $75.4 million on a pro forma basis1
Victoria, British Columbia--(Newsfile Corp. - October 6, 2026) - Tiny Ltd. (TSX: TINY) ("Tiny" or the "Company"), a holding company that acquires wonderful businesses for the long term, today announced that it has completed the acquisition of the assets comprising Oso Cloud, an enterprise software business specializing in authorization and access control. The acquisition closed on October 1, 2026.
Founded in 2019, Oso is an enterprise software business that provides authorization software companies build into their products to control what each user can see and do. Customers use it to meet enterprise-grade access-control and security requirements without building and maintaining the system themselves.
At closing, Oso Cloud had approximately $5.3 million in annualized recurring revenue ("ARR") and served approximately 80 customers in security, fintech and developer software, all on recurring subscription contracts, including several multi-year agreements. Including Oso Cloud, Tiny's pro forma annualized recurring revenue would be approximately $75.4 million1.
Management Commentary
"Controlling access to sensitive data and critical systems is fundamental to how large enterprises operate securely, especially as new applications and AI tools reshape how work gets done," said Austin Singhera, Chief Executive Officer of Tiny. "Oso Cloud helps customers manage those permissions. We're excited about the business and its growth prospects, and look forward to supporting its existing customers and reaching new ones."
Acquisition Terms
The purchase price was approximately $1.9 million, comprising approximately $1.2 million paid in cash at closing and an aggregate holdback of approximately $0.7 million for transition services and transaction adjustments, subject to release under the purchase agreement. The acquisition was funded with Tiny's balance sheet cash.
About Tiny
Tiny is a Canadian holding company that acquires wonderful businesses using a founder-friendly approach. It focuses on companies with unique competitive advantages, recurring or predictable revenue streams, and strong free cash flow generation. Tiny typically holds businesses for the long term, with a parent-level focus on capital allocation, collaborative management and operations, and incentive structures within the operating companies to drive results for Tiny and its shareholders.
Tiny currently has three principal reporting segments: Digital Services, which help some of the world's top companies design, build and ship amazing digital products; Software and Apps, which is home to Serato, the world's leading DJ software, and WeCommerce, a collection of leading application and theme businesses powering global e-commerce merchants; and Creative Platform, which is composed primarily of Dribbble, the social network for designers and digital creatives, as well as Creative Market, a premier online marketplace for digital assets such as fonts, graphics and templates.
For more about Tiny, please visit www.tiny.com or refer to the public disclosure documents available under Tiny's profile on SEDAR+ at www.sedarplus.ca.
Cautionary Note Regarding Forward-Looking Information
Certain statements in this press release may constitute forward-looking information or forward-looking statements (together, "forward-looking statements") that reflect management's current expectations regarding the Company's future growth, financial performance, business prospects and opportunities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate", "believe", "plan", "forecast", "expect", "estimate", "predict", "intend", "would", "could", "if", "may" and similar expressions. This press release includes, among others, forward-looking statements regarding the anticipated benefits of the acquisition of Oso Cloud, including the anticipated recurring revenue of Oso Cloud and its contribution to the Company's anticipated recurring revenue; the integration, continued operation and growth of Oso Cloud; the continuing need for authorization and access control as companies adopt AI tools; the retention of Oso Cloud's customers; and the Company's acquisition strategy. These statements reflect current expectations of management regarding future events and speak only as of the date of this press release. In addition, forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
By their nature, forward-looking statements require management to make various assumptions and are subject to inherent risks and uncertainties. There is a significant risk that such predictions, forecasts, conclusions or projections will not prove to be accurate, that management's assumptions may not be accurate and that actual results, performance or achievements may differ significantly from such predictions, forecasts, conclusions or projections expressed or implied by such forward-looking statements. We caution readers not to place undue reliance on the forward-looking statements in this press release as a number of factors, many of which are beyond the Company's control, could cause actual future results, conditions, actions or events to differ materially from the targets, outlooks, expectations, goals, estimates or intentions expressed in the forward-looking statements. These factors include, but are not limited to: short term liabilities; the failure to integrate acquisitions; entering new markets; funding future acquisitions; the Company's dependence on positive cash flows and its ability to source new financing; management of growth; the failure to realize expected benefits from the use of artificial intelligence ("AI"), including, without limitation, the broader impact of AI on the Company's revenue and operations; information technology and cyber security; global financial conditions; the Company's ability to maintain its obligations under its credit facilities; interest rates; foreign exchange rates; the Company's ability to enforce claims against sellers; conflicts of interest among the directors and officers of the Company; regulatory risks; foreign jurisdictions; tariffs and the volatility of trade agreements; payment processing; actual or perceived breach of data privacy and security laws; intellectual property; technological changes; internal controls; competition within ecommerce markets; confidential information; reliance on the Shopify platform; reliance on management and key employees; resale of shares; market for securities; legal claims; tax; the requirements of being a public company; and credit exposure. For a more detailed discussion of the Company's risk factors, see the list of risk factors in the Company's Annual Information Form dated March 30, 2026 which is available on SEDAR+ at www.sedarplus.ca under the Company's profile.
Forward-looking statements and information, including future-oriented financial information or financial outlook, are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied herein to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information, including, without limitation: the potential impact of the Company's acquisitions and dispositions on relationships, including with regulatory bodies, stock exchanges, lenders, service providers, employees and competitors; risks related to the successful integration of acquired businesses; credit, liquidity and additional financing risks; potential conflicts of interest; general economic conditions; industry conditions; technological advancement; political volatility; currency fluctuations; competition from other industry participants; and stock market volatility. This list is not exhaustive of the factors that may affect any of the forward-looking information contained herein.
The Company cautions that the foregoing list is not exhaustive of all possible factors, as other factors could adversely affect our results. When relying on our forward-looking statements to make decisions with respect to the Company and its securities, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise indicated, the information in this press release is current as of the date of this press release and the Company does not intend, and disclaims any obligation, to update any forward-looking statements, whether written or oral, or whether as a result of new information or otherwise, except as may be required by law.
Non-IFRS Measures
This press release contains certain non-International Financial Reporting Standard ("IFRS") financial measures, including "Recurring Revenue", "Annualized Recurring Revenue", "Recurring Revenue %" and "Pro Forma Annualized Recurring Revenue". These measures are not recognized measures under IFRS accounting standards as issued by the International Accounting Standards Board. These financial measures do not have standardized meanings prescribed under IFRS and our computation may differ from similarly-named computations as reported by other entities and, accordingly, may not be comparable. These financial measures should not be considered as an alternative to, or more meaningful than, measures of financial performance as determined in accordance with IFRS as an indicator of performance. The Company believes these measures may be useful supplemental information to assist investors in assessing our operational performance and our ability to generate cash through operations. The non-IFRS measures also provide investors with insight into our decision making as we use these non-IFRS measures to make financial, strategic and operating decisions. The Company's management also uses non-IFRS financial measures to facilitate operating performance comparisons from period to period and prepare annual budgets and forecasts.
Because non-IFRS measures do not have a standardized meaning and may differ from similarly-named computations as reported by other entities, securities regulations require that non-IFRS measures be clearly defined and qualified, reconciled with their nearest IFRS measure and given no more prominence than the closest IFRS measure.
Non-IFRS measures are not audited. Unless otherwise indicated, the financial information presented in this press release is prepared in accordance with IFRS accounting standards as issued by the International Accounting Standards Board. These non-IFRS measures have important limitations as analytical tools and investors are cautioned not to consider them in isolation or place undue reliance on ratios or percentages calculated using these non-IFRS measures.
Recurring Revenue, Recurring Revenue % and Annualized Recurring Revenue (or ARR) consists of revenues generated through subscriptions that grant access to products and services with recurring billing cycles. The subscriptions are recognized over a time period in accordance with IFRS 15. Recurring Revenue is a part of total revenue disclosed in the Company's interim condensed consolidated financial statements and notes thereto for the three and six months ended June 30, 2026 and June 30, 2025, as determined in accordance with IFRS 15. Recurring Revenue represents revenues that are expected to be stable and which the Company expects to earn continuously. Recurring Revenue % is determined by dividing Recurring Revenue by total revenue for the year. Annualized Recurring Revenue in this press release consists of the revenue incurred in the six months ended June 30, 2026, annualized for the full fiscal year. Pro Forma Annualized Recurring Revenue consists of the sum of the Annualized Recurring Revenue of the Company and the closing annualized recurring revenue of Oso Cloud (based on unaudited information provided by the vendor). Recurring Revenue is frequently used to determine indicators of future revenue growth and revenue trends. Recurring Revenue and Recurring Revenue % are measures commonly reported and widely used as a valuation metric. Annualized Recurring Revenue provides investors with an idea of what the Company's underlying business performance would look like on an annualized basis. Pro Forma Annualized Recurring Revenue provides investors with an idea of what the Company and Oso Cloud's underlying business performance would look like on an annual basis.
As required by Canadian securities laws, the Company reconciles the non-IFRS measures to the most comparable IFRS measures under the heading "Non-IFRS Measures Reconciliation" in this press release.
Non-IFRS Measures Reconciliation
Annualized Recurring Revenue
| For the six months ended June 30, | ||||||
| 2026 | 2025 | |||||
| Recurring revenues | $ | 35,006,824 | $ | 23,002,818 | ||
| Non-recurring revenues | 68,043,406 | 75,059,944 | ||||
| Total revenue | 103,050,230 | 98,062,762 | ||||
| Recurring revenue % of total revenue | 34% | 23% | ||||
| Recurring revenue | 35,006,824 | 23,002,818 | ||||
| Annualized recurring revenue1 | 70,013,648 | 46,005,636 | ||||
| Add: Unaudited Oso Cloud annualized recurring revenue2, 3 | 5,350,027 | - | ||||
| Pro forma annualized recurring revenue2, 3 | 75,363,675 | 46,005,636 | ||||
| 1. ARR is an estimated forecast of what the annualized revenue of the Company would be for the reporting fiscal year. ARR was calculated by taking the recurring revenue of the Company for the three and six months ended June 30, 2026 and multiplying it by four and two quarters respectively. Past performance is not indicative of future results and actual results may differ materially. 2. Oso Cloud's closing ARR is based on unaudited financial information provided by the vendor. Past performance is not indicative of future results and actual results may differ materially. A spot rate of 1.42 was applied to the USD annualized recurring revenue of Oso Cloud. 3. Oso Cloud's closing ARR is measured with different calculation bases and measurement dates than the Company's ARR. The pro forma combined number is presented solely to illustrate the approximate estimated scale of the combined recurring revenue base. It is not actual consolidated ARR at closing or a forecast of future revenue. Past performance is not indicative of future results and actual results may differ materially. | ||||||
1 Refer to Non-IFRS Measures and Non-IFRS Measures Reconciliation for further information.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/317671
Source: Tiny Ltd.