Q1 2026 Adcore Inc Earnings Call

May 14, 2026

Operator: Welcome to Zoom. Enter your meeting ID followed by pound. Enter your participant ID followed by pound. Otherwise, just press pound. You have joined the meeting as an attendee and will be muted throughout the meeting.

Marten: Highlights. Finally, we'll conclude with Q&A. If you have any questions throughout the call, please submit it through the questions feature here in Zoom. We'll make sure to answer these at the end of the call. All right. Before we begin, I will give everyone a quick moment to review the statements. Please bear in mind when listening to the call today that the management team might use some forward-looking statements which are inherently uncertain in nature. I give everyone a couple seconds to go over. All right. Very good. With that, I would like to pass the floor to Omri for some CEO opening remarks. Omri, the floor is yours.

Martijn van den Bemd: Highlights. Finally, we'll conclude with Q&A. If you have any questions throughout the call, please submit it through the questions feature here in Zoom. We'll make sure to answer these at the end of the call. All right. Before we begin, I will give everyone a quick moment to review the statements. Please bear in mind when listening to the call today that the management team might use some forward-looking statements which are inherently uncertain in nature. I give everyone a couple seconds to go over. All right. Very good. With that, I would like to pass the floor to Omri for some CEO opening remarks. Omri, the floor is yours.

Omri Brill: Thank you very much, Martin, and good morning, everyone. Martin, can you stop sharing, please?

Omri Brill: Thank you very much, Martijn, and good morning, everyone. Martijn, can you stop sharing, please?

Marten: Yeah.

Martijn van den Bemd: Yeah. Thank you.

Omri Brill: Thank you. Before I'm gonna start my own opening remarks, I wanna say again, it's our pleasure to discuss today the company result, financial result for Q1 2026. Actually, both myself and Martin are now in Toronto, Canada, right? Not in every day we have a chance to do the earning call directly from where we are listed. It's an exciting opportunity for us, you know, to discuss it from Toronto, from Canada. Obviously, after this call, we have a full agenda lined up for us, right, Martin? We're gonna meet with our team in Canada. We're gonna meet with clients. You know, we're gonna showcase them, you know, like, some of the exciting stuff that we've been working on. Again, it's our pleasure to be here today in Toronto to discuss the company Q1 2026 result.

Omri Brill: Before I'm gonna start my own opening remarks, I wanna say again, it's our pleasure to discuss today the company result, financial result for Q1 2026. Actually, both myself and Martijn are now in Toronto, Canada, right? Not in every day we have a chance to do the earning call directly from where we are listed. It's an exciting opportunity for us, you know, to discuss it from Toronto, from Canada. Obviously, after this call, we have a full agenda lined up for us, right, Martijn? We're gonna meet with our team in Canada. We're gonna meet with clients. You know, we're gonna showcase them, you know, like, some of the exciting stuff that we've been working on. Again, it's our pleasure to be here today in Toronto to discuss the company Q1 2026 result.

Omri Brill: Let me start by sharing my screen. Okay. Very good. A very strong start of 2026, I would say. Revenue up 22% year on year. APAC revenue growing 42%. The same, I would say, momentum that actually we saw in the end of 2025, in Q4 2025, carried well into 2026 as well, and this makes us very positive about what is still ahead of us for the entire 2026 year. To be honest, even if you're gonna talk like US dollar, because there was some influence of exchange rate during this quarter, then the results are even more dramatic. Almost 27% year on year increase, top-line revenue if you talk in USD.

Omri Brill: Let me start by sharing my screen. Okay. Very good. A very strong start of 2026, I would say. Revenue up 22% year on year. APAC revenue growing 42%. The same, I would say, momentum that actually we saw in the end of 2025, in Q4 2025, carried well into 2026 as well, and this makes us very positive about what is still ahead of us for the entire 2026 year. To be honest, even if you're gonna talk like US dollar, because there was some influence of exchange rate during this quarter, then the results are even more dramatic. Almost 27% year-on-year increase, top-line revenue if you talk in USD.

Speaker #3: Okay. Very good. So very strong start of 2026, I would say. Revenue up 22% year on year. APAC revenue grew in 42%. So the same, I would say, momentum that actually we saw in the end of 2025 in Q4 2025 carried well into 2026 as well.

Speaker #3: And this is makes a very positive about what is still ahead of us for the entire 2026 year. And to be honest, even if we're going to talk like US dollar because there was some influence of exchange rate during this quarter, then the results are even more dramatic, almost 27% year on year increase top-line revenue.

Speaker #3: If you're talking USD and gross profit, for example, 6% up USD compared to almost flattening in Canadian dollar, or maybe 1% up in Canadian dollar.

Omri Brill: Gross profit, for example, 6% up USD compared to almost flat 10 in CAD or maybe 1% up in CAD. Quarterly result, CAD 8.5 million. Very strong quarter for us compared to CAD 7 million in the previous year. 22% decrease year on year CAD, 27% decrease year on year USD. Gross profit, again, CAD 3.1, up 1% compared to the same period last year, or 6% actually USD compared to the same period last year. Look at quality gross KPIs, again, gross profit CAD 3.1% up. Cash and cash equivalent, CAD 5.1 million. We saw a decline compared to Q4, but I would say it's mainly seasonality decline.

Speaker #3: So quarterly result, 8.5 million Canadian dollar, very strong quarter for us compared to 7 million in the previous year. 22% decrease year on year.

Speaker #3: Canadian dollar, 27% decrease year on year. USD, and gross profit again, 3.1 up 1% compared to the same period last year or 6% actually USD compared to the same period last year.

Speaker #3: If you look at quality gross KPIs, and again, gross profit was $3.1 million, 1% up. Cash and cash equivalents were $5.1 million. We saw a decline compared to Q4, but I would say it's mainly a seasonality decline.

Omri Brill: A lot of the, I would say, spend and campaigns that were happening Q4 2026, and money was flowing during this quarter, actually was paid during Q1 2026, and that reflects in the numbers when you look at, let's say, and Amit Konforty gonna cover it in more detail, working capital, then obviously you're not gonna see such a sharp decline. That's a good indicator that basically there's nothing dramatic happened. It's just, I would say, seasonality cash flow between the quarters. Just to wrap up some of the highlights, we covered most of them, I guess. Top-line revenue, CAD 8.5 million, 22% year on year increase. Big numbers, big growth. Gross profit, CAD 3.1 million, 1% year on year increase.

Speaker #3: A lot of the, I would say, spend and companies that were opening Q4 2026 and money was flowing, like during this quarter, actually was paid during Q1 2026.

Speaker #3: And that's reflected in the numbers. When you look at, let's say, and I'm not going to cover it in more detail, working capital, then obviously you're not going to see such a sharp decline.

Speaker #3: So and that's a good indicator that basically there's nothing dramatic happened. It's just, I would say, seasonality cash flow between the quarter. So just to ramp up some of the highlights we cover most of them, I guess, top-line revenue, 8.5 million Canadian dollar, 22% year on year increase, big numbers, big growth, gross profits 3.1 million dollar, 1% year on year increase, APAC continue to show very strong momentum, 42% year on year growth.

Omri Brill: APAC continued to show very strong momentum. 42% year on year growth. That's I would say the fastest-growing market for us to date. EMEA almost, I would say, flattened. Actually, North America done 7%, but actually for us it's positive signal because we see North America is flattening. We did saw some softness in this important market in 2025. The company now believe that this softness is more or less ended. Actually, we expected to see this market going to positive growing trend in 2026 as the year unfold. I would say, Amit will cover, you know, the result in more detail, so I would keep some of the artwork to Amit to cover.

Speaker #3: That's, I would say, the fastest growing market for us to date. IMEA almost, I would say, flattened. And actually, North America done 7%, but actually for us, it's positive signal because we see North America is flattening.

Speaker #3: We did saw some softwares in this imported market in 2025, and the company now believes that this software is more or less ended. And actually, we expected to see this market going to positive growing trend in 2026 as the Iran fold.

Speaker #3: So I would say Amit will cover the result in more detail. So I would keep some of the artwork to Amit to cover, but what actually I would like to discuss now is two new technology or developing new technology at the company is building and basically we are very excited about.

Omri Brill: What actually I would like to discuss now is two new technology or developing new technology the company is building, and basically we are very excited about, and I want to show both of them in action so you have better understanding what is under the hood, what type of AI innovation technology the company is building. Proposaly, obviously we've been talking about Proposaly during also the last earning calls, but I think like this is a major change or shift in the product promising. Proposaly started as, I would say, document platform or sales document platform. The promise was quote to revenue. Basically, we're gonna generate a very nice-looking quote for you. You can share it with your client.

Speaker #3: And I want to show both of them in action so you have a better understanding of what is under the hood, what type of AI innovation technology the company is building.

Speaker #3: So proposedly, obviously, we've been talking about proposedly during also the last earning calls, but I think this is a major change or shift in the product promising.

Speaker #3: So proposedly started as, I would say, document platform or sales document platform. And the promise was quote to revenue. So basically, we're going to generate a very nice looking quote for you.

Speaker #3: You can share it with your client. You're going to close more deal for you and basically generating the end of the day more revenue.

Omri Brill: It gonna close more deal for you and basically generate in the end of the day more revenue. In the end of the day, the platform was, you know, like manual platform. You need to still manually generate the quote and send it to your clients. Now what Proposaly is becoming, I would say, it's a full agentic platform and are actually covering much bigger, I would say, promise of the sales funnel. Imagine sales funnels that run themselves and basically with the new Proposaly, this type of imagination would be the reality. We're gonna have AI agents closing every deal from lead to revenue, and basically that's gonna be the new reality of Proposaly.

Speaker #3: But in the end of the day, the platform was like manual platform. You need to still manually generate the quote and send it to your clients.

Speaker #3: But now what's proposedly is becoming, I would say, it's a full agentic platform. And actually, covering much bigger, I would say, promise of the sales funnel.

Speaker #3: So imagine sales funnels that run themselves and basically with the new proposal, this type of imagination would be the reality. We're going to have AI agents closing every deal from lead to revenue.

Speaker #3: And basically, that's going to be the new reality of a proposal. So no longer quote to revenue. We are expanded to lead to revenue platform, but I would think the most important thing that everything will be done agentically, by AI agent.

Omri Brill: No longer quote to revenue, we are expanded to lead to revenue platform, but I would think the most important thing that everything will be done agentically by AI agent. When we talk agentically, we talk about four different agents. We have inbound agent, that's an agent that sit or live in the client website. Basically, every time a visitor coming to the client's website, they can start interacting with this agent, and the agent's goal is either to convert them to lead or even basically create and send like personalized quote to them. That's a big promise. This agent is already live. It's already shipped, and it's already working, and I will give you a presentation soon. The second agent in the pipeline is outreach agent.

Speaker #3: And when we talk agentically, we talk about four different agents. We have inbound agent. That's an agent that seats or live in the client websites.

Speaker #3: Basically, every time a visitor comes to the client's website, they can start interacting with this agent. And the agent goal is either to convert them to lead or even basically create and send personalized quote to them.

Speaker #3: And that's a big promise. This agent is already live. It's already shipped and is already working. And I would give you a presentation soon.

Speaker #3: And the second agent in the pipeline is outreach agent. So imagine the inbound agent already converted the client into a lead, but this lead got called.

Omri Brill: Imagine the inbound agent already converted the client into a lead, but this lead got cold. The outreach agent now gonna take in charge and basically try to convert to warm again this lead and basically make sure that it's warm enough to send him a quote and basically start his process of converting him. We have the third agent, so it's the deal agent. Once a quote is generated, this is when the deal agent gonna start taking command, and basically his role is very simple, yet important, making sure that this deal is converted. Basically it's no longer a quote, it's becoming a revenue. Basically the client signed the deal, closed the deal, paid for the deal. That's the deal agent's responsibility. Last but not least, is the customer agent.

Speaker #3: So the outreach agent now going to take in charge and basically try to convert a warm again this lead and basically make sure that he's warm enough to send him a quote.

Speaker #3: And basically, start his process of conversing him. And then we have the third agent. So it's the deal agent. So once a quote is generated, this is when the deal agent is going to start taking command.

Speaker #3: And basically, his role is very simple, yet important, making sure that this deal is converted. So basically, it's no longer a quote. It's becoming a revenue.

Speaker #3: And basically, the client signed the deal, closed the deal, paid for the deal. So that's the deal agent's responsibility. And last but not least, and is the customer agent.

Speaker #3: So the customer agent is going to take command once the deal is already closed. So his role is going to be making sure the customer is happy, satisfied, that he's going to offer cross-sell and upsell opportunities for the client.

Omri Brill: The customer agent's gonna take command once the deal is already closed. His role gonna be making sure the customer is happy, satisfied, that he gonna offer cross-sell and up-sell opportunities for the client. Between these four agents, we are talking a complete agentic sales funnel, you know, from lead to revenue. Inbound agent sit on the client website. Outreach agent, you know, it calls or outreaching, you know, cold leads and make sure that they are warm again. Deal agent, you know, make sure that the deal is closed. Customer agent make sure the customer is happy, and we can up-sell and cross-sell them as well. That's a big promise and basically that solve I would say of the issues of most businesses on planet Earth. I wanna show you a live example how it's everything is working.

Speaker #3: So between these four agents, we are talking a complete agentic sales funnel—from lead to revenue. Inbound agent, sit on the client website; outreach agent, call or outreach cold leads and make sure that they are warm again; deal agent, make sure that the deal is closed.

Speaker #3: And customer agent, make sure the customer is happy and we can upsell and close them as well. That's a big promise. And basically, that's the last, I would say, of the issues of most businesses on planet Earth.

Speaker #3: I want to show you a live example of how everything is working. Okay. So, we are on a demo website of a pest control company from Phoenix, Arizona.

Omri Brill: Okay, we are on a demo website of a pest control, a company from Phoenix, Arizona, ACTION. That's a real company basically what we did, we just like put a demo agent on the website, the inbound agent. I'm gonna now interact with him, ask him question about the services they are offering, and everything gonna be done in real-time. Basically this is not gonna be like, it's not like a pre-recorded demo or anything like that. What's going on right now, we're gonna start speaking with this agent. Basically this look to you like maybe like a normal chat, I would say now I can switch to voice mode as well. Hey, good morning.

Speaker #3: Action. That's a real company. And basically, what we did, we just put a demo agent on the website, the inbound agent. I'm going to now interact with him, ask him questions about the services they are offering.

Speaker #3: And everything is going to be done in real time. So basically, this is not going to be like it's not like a prerecorded demo or anything like that.

Speaker #3: I what's going on right now, I'm going to start speaking with this agent. So basically, that's look to you like maybe like a normal chat, but I would say now I can switch to voice mode as well.

Speaker #3: Hey, good morning.

[Company Representative] (Adcore): Good morning. What's going on with pests in your place?

[Company Representative 1] (ACTION): Good morning. What's going on with pests in your place?

Speaker #2: Good morning. What's going on with tests at your place?

Omri Brill: Oi.

[Company Representative] (Adcore): Kind of-

[Company Representative 1] (ACTION): Kind of-

Speaker #1: It's a lot going on, to be honest.

Omri Brill: A lot going on, to be honest.

[Company Representative] (Adcore): Got it. Sounds like a busy situation. What pests are you seeing most right now? Ants, termites, roaches, or rodents?

[Company Representative 1] (ACTION): Got it. Sounds like a busy situation. What pests are you seeing most right now? Ants, termites, roaches, or rodents?

Speaker #2: Got it. Sounds like a busy situation. What tests are you seeing most right now? Ants, termites, roaches, or rodents?

Speaker #1: We have ant issue.

Omri Brill: We have ant issue.

Speaker #2: Got it. An ant problem. Are you looking for a one-time ant treatment or ongoing monthly ant protection to keep them from coming back?

[Company Representative] (Adcore): Got it. An ant problem. Are you looking for a one-time ant treatment or ongoing monthly ant protection to keep them from coming back?

[Company Representative 1] (ACTION): Got it. An ant problem. Are you looking for a one-time ant treatment or ongoing monthly ant protection to keep them from coming back?

Speaker #1: I don't know. It depends. How much is each?

Omri Brill: I don't know. It depend. How much is each?

Speaker #2: For ants, a one-time treatment is typically around $149. An ongoing monthly service is typically around $49 a month. I can send you the details for the one-time ant treatment or the monthly ant protection.

[Company Representative] (Adcore): For ants, a 1-time treatment is typically around CAD 149. An ongoing monthly service is typically around CAD 49 a month. I can send you the details for the 1-time ant treatment or the monthly ant protection. Want me to send one of them?

[Company Representative 1] (ACTION): For ants, a 1-time treatment is typically around CAD 149. An ongoing monthly service is typically around CAD 49 a month. I can send you the details for the 1-time ant treatment or the monthly ant protection. Want me to send one of them?

Speaker #2: Want me to send one of them?

Speaker #1: Yeah. I think let's start with the one-off and take it from there.

Omri Brill: Yeah. I think let's start with the one-off and take it from there.

Speaker #2: Perfect. I just need a couple of quick details, and I'll send it right over.

[Company Representative] (Adcore): Perfect. I just need a couple of quick details, and I'll send it right over.

[Company Representative 1] (ACTION): Perfect. I just need a couple of quick details, and I'll send it right over.

Speaker #1: Okay. So that was a real conversation I did with this agent, right? Everything was voice. He gave me a good answer. Everything he got all the information about the specific tool, treatment that he had with ant control.

Omri Brill: Okay. That was a real conversation I did with this agent, right? Everything was voiced. He gave me, like, a good answer, everything. He got all the information about this specific two treatment that he have with ant control. In the end of the day, this bot just generated a custom quote for me. I can click on the quote it just, you know, generate for me and look at, look at the price quote itself. That's the quote. Like he said, it was CAD 149. We have add-ons options, I can add, let's say CAD 49 and add like multi-pest treatment as well. Maybe I have cockroaches or other issues in my home. You see the price quote already changed to from CAD 149 to CAD 199. I can click Continue.

Speaker #1: In the end of the day, this bot just generated a custom quote for me. So I can click on the quote he just generated for me and look at the price quote itself.

Speaker #1: So that's the quote. Like you say, it was $149. We have add-ons options. So I can add, let's say, $49 and add multi-pest treatment as well.

Speaker #1: So maybe I have cockroaches or other issues in my home. So you see the price quote already changed from $149 to $199. I can click continue.

Omri Brill: He asked me if I wanna add a tip, obviously, so I can already add a service charge from within the app itself. Final step gonna be going to payment. Everything is done, you know, from the app. The bot basically in real-time generated a real price quote for me, and that's a big promise. Whether it's gonna be the lead itself or whether it's gonna be the actual, you know, like you're sending the actual payment, then basically all of that's done now in real time with the bot, with the AI agent. You can chat with him, you can speak with him like you're speaking with a human being. It's a very promising, I would say offering.

Speaker #1: He asked me if I want to add the tip, obviously. So I can already paid or add a service charge from within the app itself.

Speaker #1: And final step going to be going to payment. So everything is done. From the app, the bot basically in real time generated a real price quote for me.

Speaker #1: And that's a big promise. And whether it's going to be the lead itself or whether it's going to be whether it's going to be the actual sending the actual payment, then basically all of that's done.

Speaker #1: Now in real time, with the bot, with the AI agent, and you can chat with him. You can speak with him like you're speaking with a human being.

Speaker #1: It's a very promising I would say offering. Now, so that's sorry. That's one I would say new feature or it's not just a feature.

Omri Brill: That's one, I would say new feature or it's not just a feature. That's the future of Proposaly where what you just see, and it's a big promising future. Proposaly is going fully agentic. We are turning from a, I would say, document flow type of platform for, you know, fully agentic sales funnel platform, everything from lead to revenue and beyond. That's a big promise, and that's already in motion. Inbound agent, already live, shipped. Outreach agent, already in process. We are building it as we speak. Deal agent should be ready by the end of this quarter. We're talking about 1 and a half months from now. Customer agent will be follow as well. Big promise with regards to this, I would say agented direction of Proposaly. I wanna cover another app.

Speaker #1: That's the future of Proposly where what you just see. And it's a big promising future. Proposly is going fully agentic. We are turning from, I would say, document flow type of platform for fully agentic sales funnel platform.

Speaker #1: Everything from lead to revenue and beyond. So that's a big promise. And that's already in motion. Inbound agent already live, shipped. Outreach agent already in process.

Speaker #1: We are building it as we speak. Deal agent should be ready by the end of this quarter. So we're talking about one and a half months from now.

Speaker #1: And customer agent will be followed as well. So big promise with regards to this I would say agent and the direction of Proposly. So I want to cover another app.

Speaker #1: I know we mentioned maybe the AI Studio app before, but you never saw it in action. I'm going to now reveal how it looks like and what's basically you can do with the AI Studio app.

Omri Brill: I know we mentioned maybe the AI Studio app before, but you never saw it in action. I wanna now reveal how it look like and what basically you can do with the AI Studio app. The promise with the AI Studio app is design like a pro without being one. You can see I don't know how familiar you are with online marketing, but I would say the single biggest roadblock to nowadays in online marketing, I would say it's ad creative. That's the most important, you know, like, I would say, part with any campaign and especially with rich type of ad creative, whether it's banners, whether it's UGC video, whether it's commercial video. All of this type of video now taking a long time to produce. It's a bottleneck. You need to have like a dedicated studio for it.

Speaker #1: So the promise with the AI Studio app is designed like a pro without being one. And you can see I don't know how familiar you are with online marketing, but I would say the single biggest roadblock to nowadays in online marketing, I would say it's ad creative.

Speaker #1: So that's the most important I would say part with any campaign. And especially with rich type of ad creative, whether it's banners, whether it's UGC video, whether it's commercial video, all of these type of video now taking a long time to produce, it's a bottleneck.

Speaker #1: You need to have a dedicated studio for it. It takes time. It's not something that the online marketer usually can do himself. And basically, it's a real pain and a real bottleneck for, I would say, most businesses on planet Earth as well.

Omri Brill: It takes time. It's not something that the online marketer usually can do himself. Basically, it's a real pain and a real bottleneck for, I would say, most businesses on planet Earth as well. AI Studio was designed and built to solve this problem. Let me share my screen again with regards to the AI Studio app. One second. Okay. Basically, I want to cover few type of assets you can create with the app. The first type of assets that we're going to create is banners. Every asset starts with a simple brief, right? Now, this is a real example of a real client of us in Canada, HockeyStickMan. They're selling hockey gears online. Basically, we give them the brand.

Speaker #1: And AI Studio was designed and built to solve this problem. So let me share my screen again with regards to the AI Studio app.

Speaker #1: And one second. Okay. So basically, I want to cover a few types of assets you can create with the you can create with the app.

Speaker #1: The first type of assets that we are going to create is a banner. So every asset starts with a simple brief, right? Now, that's a real example of a real client of us in Canada or Kystikman, the selling hockey gears online.

Speaker #1: And basically, so we give them the brand. You can pre-enter the brand, putting the brand booked. His logo and everything into the platform. So the platform will know this specific brand already.

Omri Brill: You can pre-enter the brand, putting the brand book, its logo and everything into the platform, so the platform will know this specific brand already. Give him the campaign brief, you know, what we're trying to sell. This like is going for a specific product, so I can check and upload the product images as well. I select what type of assets I wanna create, whether it's banner and image, and clip, UGC video, a commercial ad video. Once I selected, let's say in this specific example, banner, next will be to select the copy. Using AI, the system already pre-generated a copy for me. I can select a specific copy. I can customize it if needed. I can select a short copy. I can like select a longer copy, for example. It doesn't matter.

Speaker #1: Give him the campaign brief, what we're trying to sell. This is going for a specific product. So I can check and upload the product images as well.

Speaker #1: And I select what type of assets I want to create, whether it's banner. And image and clip, UGC video, a commercial ad video. So once I selected, let's say, in this specific example, banner, next will be to select a copy.

Speaker #1: So using AI, the system already pre-generated a copy for me. I can select a specific copy. I can customize it if needed. I can select a short copy.

Speaker #1: I can select a longer copy, for example. It doesn't matter. So once I'm happy with the copy, next will be the system will give me some kind of banner design direction.

Omri Brill: Once I'm happy with the, with the copy, next will be, the system will give me some kind of banner design direction. It give me like multiple direction. We have this with the person. This is just the gear in the, in the front. You know, again, like multiple design direction, and I have like 8 different design concepts I can choose from. I can generate more if I need it, if I'm not happy. Let's say in this specific example, we selected this specific design. This is the concept that we are happy with. We continue to production. In the production stage, I can select which channel I would like to generate the assets to. Each channel come with all sets of, let's say, sizes for the banners.

Speaker #1: So, give me multiple directions. We have this with the person—this is just the gear in the front. Again, multiple design directions. And I have eight different design concepts I can choose from.

Speaker #1: So I can generate more if I need it. If I'm not happy. But let's say in this specific example, we selected this specific design.

Speaker #1: This is the concept that we are happy with. And basically, we continue to production. In the production stage, I can select which channel I would like to generate the assets to.

Speaker #1: So each channel comes with all sets of, let's say, sizes for the banners. And basically, in this example, I selected meta. And it's generated four sizes for me.

Omri Brill: Basically, in this example, I selected Meta, and it's generated, you know, like 4 sizes for me. You can see, like this specific example, this is more landscape type of banner, for example. Just 1 second. Everything was done by AI. All this resizing was done, you know, from the concept banner by AI. There was 0 human intervention. This is like a landscape banner, and this is like a more square banner, for example. Again, this is like real life, real banners that the system is built, and everything done with, I would say, few clicks. From start to finish, if you remember, I started the campaign, give him a brief, upload some product images, then selected the copy for the banner, then it give you, like, few design option.

Speaker #1: And you can see this specific example. This is more landscape type of banner, for example. Just one second. And everything was done by AI.

Speaker #1: So, all these resizings were done from the concept banner by AI. There was zero human intervention. This is a landscape banner, and this is a more square banner, for example.

Speaker #1: So again, this is real life—the real banners that the system has built. And everything is done with, I would say, a few clicks. So, from start to finish, if you remember, I started the campaign, gave him a brief, uploaded some product images.

Speaker #1: Then selected the copy for the banner. Then I give it a few design options. I selected one design option. And then let's say I selected I want to generate now four sizes for meta.

Omri Brill: I selected one design option, and then let's say I selected I wanna generate now four sizes for Meta. Generated, done. It's everything, I would say, from A to Z, that maybe couple of minutes max, and that's it. If the same process would need to be done manually, let's say by a creative designer, that can be hours of work, you know, like doing everything, choosing the right copy, gives a few concept direction for the banner. Just creating the sizes, it's a lot of work by itself. Everything is done now with the platform, that's nothing short than amazing. This is one type of a video or asset I would like to like to show you. Another type is very similar in concept, but it's a UGC video. Again, we start with the brief.

Speaker #1: Generated, done. Everything I would say from A to Z, maybe a couple of minutes, max. And that's it. And if the same process would need to be done manually, let's say by a creative designer, that can be hours of work.

Speaker #1: Doing everything. Choosing the right copy, giving a few concept directions for the banner, adjusting, creating the sizes. It's a lot of work by itself.

Speaker #1: And everything is done now with the platform. There's nothing shorter than amazing. So this is one type of video or asset I would like to show you.

Speaker #1: Another type is very similar in concept, but it's a UGC video. So again, we start with the brief. This is for another client of us.

Omri Brill: This is for another client of ours. It's a Tiny Love. They're creating amazing baby toys. Once we created it give us a script of the video, so we can select, you know, what type of, you know, like what is the story we wanna say, basically. Next is cast. The AI offering us, you know, four different, I would say people or personnel, like young mom in this example, to do the UGC, so I can select what is best working for me. Obviously, you have the full context of the brief, so you understand where I'm locating, if whether I'm in the US or, you know, like in other countries. Obviously, the people would be reflecting, you know, like the local people that are in this specific country.

Speaker #1: It's a tiny lab. They're creating amazing baby toys. So once we created it, it gave us a script of the video. So we can select what type of what is the story we want to say, basically.

Speaker #1: And then, next is cast. So the AI is offering us four different, I would say, people or personnel—like 'young mom' in this example—to do the UGC.

Speaker #1: So I can select what is best working for me. Obviously, you have the full context of the brief, so you understand where I'm located—whether I'm in the US or in other countries.

Speaker #1: So obviously, the people would be reflecting the local people that are in this specific country. And then once I select like, "Okay, I'm going to go this is the script that I want to the person to say.

Omri Brill: Once I select, you know, like, okay, I'm gonna go like this is the script that I want, the, the person to say, this is like how the person should look like. I basically creating this video, and let's run it and see it ourself. This was creating by the AI.

Speaker #1: This is how the person should look like." And then I basically creating this video. And let's run it and see it ourselves. This was creating by the AI.

[Company Representative] (Adcore): Why did nobody tell me about this sooner? My little one is obsessed, and I'm not even exaggerating right now.

Speaker #2: But why did nobody tell me about this sooner? My little one is obsessed. And I'm not even exaggerating right now. UK mamas, why did nobody tell me about this sooner?

[Company Representative 2] (ACTION): Why did nobody tell me about this sooner? My little one is obsessed, and I'm not even exaggerating right now.

Omri Brill: From the beginning.

[Company Representative] (Adcore): Hey, mamas, why did nobody tell me about this sooner? My little one is obsessed, and I'm not even exaggerating right now.

[Company Representative 1] (ACTION): Hey, mamas, why did nobody tell me about this sooner? My little one is obsessed, and I'm not even exaggerating right now.

Speaker #2: My little one is obsessed. And I'm not even exaggerating right now.

Speaker #1: Okay. That's nothing shorter than amazing. And this is the real product. So we upload this specific product. So this product is lived within the video.

Omri Brill: Okay. That's nothing short than amazing. This is the real product. We upload this specific product. This product is live within the video. The person basically saying exactly the script we wanted to say. We created a very authentic look type of a UGC video and the entire process again, second. That's like imagine you have like, I don't know, 20 product, 50 product, 500 product. It doesn't matter. Like for all of them, the system can create this type of UGC video in minutes, I would say. Final example I would like to give is actually what we call commercial type video, right? Again, started very similar with the brief. Again, HockeyStickMan, I uploaded the stick that I would like to promote. It's called Pro Blackout, and it's now on sale.

Speaker #1: The person basically is saying exactly the script we wanted to say. We created a very authentic look type of UGC video. And the entire process, again, seconds.

Speaker #1: So that's imagine you have I don't know. 20 products, 50 products. 500 products. It doesn't matter. For all of them, the system can create this type of UGC video.

Speaker #1: In minutes, I would say. Final example I would like to give. Is actually what we call commercial type video, right? So again, started very similar with the brief.

Speaker #1: Again, hockey stick man. I uploaded the sticks that I would like to promote. It's called pro blackout. And it's now on sale. It's more than 50% off.

Omri Brill: It's more than 50% off. I selected I wanna do a TV-type commercial. Again, the system pre-generated to me like a different script and voiceover, I can say. I can select it one, let's say one story I would like to go for the commercial. I have eight different, you know, type of, let's say, commercial I can create, you know, commercial types. It can be more of testimonials, it can be other stories, you know. Like I can select from different, let's say, a different angle or direction. Once I created the, let's say, now I need to generate it, I can generate it landscape or vertical, it doesn't matter. Let's see the commercial the AI generated for us.

Speaker #1: And I selected I want to do a TV type commercial. Again, the system pre-generated to me a different script and voiceover. I can say.

Speaker #1: So I can select one, let's say, one story I would like to go for the commercial. And I have eight different type of, let's say, commercial I can create.

Speaker #1: Commercial type. So it can be more of testimonials. It can be other stories. I can select from different, let's say, eight different angle or direction.

Speaker #1: And then, once I created it, let's say, now I need to generate it. I can generate it landscape or vertical, it doesn't matter. And let's see the commercial the AI generated for us.

[Company Representative] (Adcore): CAD 300 sticks in a season. This one's the same carbon, same flex path, CAD 160.

[Company Representative 3] (ACTION): CAD 300 sticks in a season. This one's the same carbon, same flex path, CAD 160.

Speaker #3: $300 sticks in a season. This one's the same carbon, same flex bath. 160 bucks. Hockey stick man. Top end sticks. Half the price. Shop pro blackout.

Omri Brill: HockeyStickMan. Top-end sticks, half the price. Shop Pro Blackout. From the beginning.

Speaker #1: From the beginning.

Speaker #3: I've snapped $300 sticks in a season. This one's the same carbon, same flex bath. 160 bucks. Hockey stick man. Top end sticks. Half the price.

[Company Representative] (Adcore): I've snapped CAD 300 sticks in a season. This one's the same carbon, same flex path, CAD 160.

[Company Representative 3] (ACTION): I've snapped CAD 300 sticks in a season. This one's the same carbon, same flex path, CAD 160.

Omri Brill: HockeyStickMan. Top-end sticks, half the price. Shop Pro Blackout. Cool. Again, this was generated by AI, look like million dollar, look like a commercial we can now ship to TV and whatever we need to do with it. Again, we control everything. We control the script, we can control the end card, the message, everything that need to be said. This is like I gave you now three example what can be generated with this app. If you need banners, if you need UGC video, if you need commercial grade, I would say TV grade commercial, all of that can be done now with this app. I never saw something like that. That's probably the best, I would say, AI Studio app out there nowadays. Correct me if I'm wrong, Marten. Did you see anything better than this one?

Speaker #3: Shop pro blackout.

Speaker #1: Cool. So again, this was generated by AI. Look like a million dollar. Look like a commercial we can now ship to TV and whatever we need to do with it.

Speaker #1: And again, we control everything. Control the script. We can control the end card, the message. Everything that needs to be said. And this is like I gave you now three examples what can be generated with this app.

Speaker #1: So if you need banners, if you need UGC video, if you need commercial-grade I would say TV-grade commercial, all of that can be done now with this app.

Speaker #1: I never saw something like that. That's probably the best, I would say, AI studio app out there nowadays. Correct me if I'm wrong, Martin.

Speaker #1: Did you see anything better than this one?

Speaker #4: It's very unique. I'm very thrilled about it.

Marten: It's very unique. I'm very thrilled about it.

[Company Representative 1] (ACTION): It's very unique. I'm very thrilled about it.

Omri Brill: Me too. Me too. That's make the two of us. We go back to my presentation. That's concluded my session. I know we covered, you know, some of the highlights of this quarter. Equally important, we covered, you know, some very exciting stuff we can do now with AI, whether it's Proposaly becoming fully agentic platform covering lead to revenue life cycles. You know, for most businesses on planet Earth, this is a massive opportunity. AI Studio, we can do magic now with using this app and solve a big problem, a big gap in the market as well. My final remark gonna be on the share price. Again, we cover it in every, I would say, earning call, CAD 0.25. That's as of 8 May.

Speaker #1: Me too. Me too. So let's make the two of us. So let me go back to my presentation. So that concluded my session. So I know we covered some of the highlights of this quarter.

Speaker #1: Equally important, we covered some very exciting stuff we can do now with AI, whether it's proposing becoming a fully agentic platform covering lead-to-revenue life cycles for most businesses on planet Earth.

Speaker #1: This is a massive, massive opportunity. And AI Studio—we can do magic now using this app and solve a big problem, a big gap in the market as well.

Speaker #1: So my final remark is going to be on the share price. Again, we cover it in every, I would say, earning call. 25 cents.

Speaker #1: That's as of May 8th. We've seen a very big upside. If you're talking EV to gross profit, almost 600%. If you're talking EV to EBITDA, then a 13% upside.

Omri Brill: We've seen a very big upside, if we're talking EV to gross profit, almost 600%. If we're talking EV to EBITDA, then a 13% upside. Again, I think like shareholders should see Adcore as a different, as a different company right now, as an AI company. I think what we've been demonstrating to you today is the future of Adcore. Hopefully you are excited as we are about this future and what this can bring to the company, what this can bring to potential client base, and what type of problems we are solving in the market today using AI. Thank you all very much.

Speaker #1: But again, I think shareholders should see Edcore as a different company, right now, as an AI company. And I think what we've been demonstrating to you today, it's the future of Edcore.

Speaker #1: So hopefully, you are excited as we are about this future and what it can bring to the company, what it can bring to potential client base, and what type of problems we are solving in the market today using AI.

Speaker #1: Thank you all very much.

Speaker #4: Thank you, Omri. Very exciting stuff happening, and I appreciate you showing this to the audience today. With that, I want to hand it over to Amit Koforti, CEO of the company, for some financial highlights.

Marten: Thank you, Omri. Very exciting stuff happening, and appreciate you showing this to the audience today. With that, I wanna hand it over to Amit Konforty, CFO of the company, for some financial highlights.

Martijn van den Bemd: Thank you, Omri. Very exciting stuff happening, and appreciate you showing this to the audience today. With that, I wanna hand it over to Amit Konforty, CFO of the company, for some financial highlights.

Speaker #5: Thank you, Martin. And good morning, everyone. Before beginning the financial overview, I would like to remind you that the following discussion will include gap financial measures, as well as non-gap results.

Amit Konforty: Thank you, Marten. Good morning, everyone. Before beginning the financial overview, I would like to remind you that the following discussion will include GAAP financial measures as well as non-GAAP results. All amounts will be presented in Canadian dollars. The Q1 of 2026 showed a strong start to the year with a strong revenue growth. The results reflect continued business momentum and ongoing efforts to improve the company's market position and clients' relationships. Let's review in more detail. For the three months ended 31 March 2026, we delivered revenue of CAD 8.5 million compared to CAD 7 million in the same period of 2025, an increase of CAD 1.5 million or 22%.

Speaker #5: All amounts will be presented in Canadian dollars. The first quarter of 2026 showed a strong start to the year with a strong revenue growth.

Speaker #5: The results reflect continued business momentum and ongoing efforts to improve the company's market position and clients' relationships. Let's review in more detail. For the three months ended March 31st, 2026, we delivered revenue of 8.5 million compared to 7 million in the same period of 2025.

Speaker #5: An increase of $1.5 million, or 22%. Gross profits for the three months ended March 31, 2026, were $3.1 million compared to $3.1 million in the prior year, relatively stable year over year.

Amit Konforty: Gross profit for the three months ended 31 March 2026 was CAD 3.1 million compared to CAD 3.1 million in the prior year, relatively stable year over year. Gross margins for the three months ended 31 March 2026 were 37% compared to 44% in the same period last year. The decrease in margins is mainly driven by changes in client mix. As for operational expenses, R&D expenses for the quarter were CAD 0.4 million compared to CAD 0.6 million in the prior year. The decrease in expenses is mainly due to increased capitalization of development costs. SG&A expenses for the quarter were CAD 3.4 million compared to CAD 2.8 million in the prior year, an increase of CAD 0.6 million or 22%.

Speaker #5: Gross margins for the three months ended March 31, 2026, were 37%, compared to 44% in the same period last year. The decrease in margins is mainly driven by changes in client mix.

Speaker #5: As for operational expenses, R&D expenses for the quarter were $0.4 million compared to $0.6 million in the prior year. The decrease in expenses is mainly due to increased capitalization of development costs.

Speaker #5: SG&A expenses for the quarter were 3.4 million compared to 2.8 million in the prior year, an increase of 0.6 million or 22%. The increase was mainly driven by payroll-related expenses and was partially impacted by foreign exchange rate fluctuations.

Amit Konforty: The increase was mainly driven by payroll-related expenses and was partially impacted by foreign exchange rate fluctuations. Operating loss for the 3 months ended 31 March 2026 was CAD 0.7 million compared to CAD 0.3 million in the same period last year. Net loss for the 3 months ended 31 March 2026 was CAD 0.8 million compared to CAD 0.2 million in the same period last year, an increase of CAD 0.6 million. Revenues and gross profits. Looking at the quarterly results, we can see a strong year-over-year revenue growth. This continues the positive trend from the end of 2025, as shown in the full year results to the right.

Speaker #5: Operating loss for the three months ended March 31st, 2026, was 0.7 million compared to 0.3 million in the same period last year. Net loss for the three months ended March 31st, 2026, was 0.8 million compared to 0.2 million in the same period last year, an increase of 0.6 million.

Speaker #5: Revenues and gross profits. Looking at the quarterly results, we can see strong year-over-year revenue growth. This continues the positive trend from the end of 2025, as shown in the full-year results to the right.

Speaker #5: Gross profits remained relatively stable compared to the same period last year, and gross margin levels were impacted by changes in client mix. We expect margin to improve and stabilize as the year progresses.

Amit Konforty: Gross profits remained relatively stable compared to the same period last year. Gross margins levels were impacted by changes in client mix. We expect margins to improve and stabilize as the year progresses. As for the geographical revenue breakdown for Q1 2026, APAC revenue saw a very strong year-over-year increase of 42%. This increase was primarily driven by increased activity from existing clients and the acquisition of new clients. EMEA and North America revenue decreased by 2% and 7% year-over-year respectively. The results were mainly impacted by changes in client media budgets and foreign exchange rate fluctuations. In terms of financial positions, we had cash and cash equivalent of CAD 5.1 million as of 31 March 2026, compared to CAD 10.3 million at 31 December 2025.

Speaker #5: As for the geographical revenue breakdown for Q1 2026, APAC revenues saw a very strong year over year increase of 42%. This increase was primarily driven by increased activity from existing clients and the acquisition of new clients.

Speaker #5: EMEA and North America revenue decreased by 2% and 7% year over year, respectively, the results were mainly impacted by changes in client media budgets and foreign exchange rate fluctuations.

Speaker #5: In terms of financial positions, we had cash and cash equivalent of 5.1 million as of March 31st, 2026, compared to 10.3 million at December 31st, 2025.

Amit Konforty: Total working capital amounted to CAD 4.2 million compared to CAD 5.1 million at 31 December 2025, a decrease of CAD 0.9 million or 18%. As for the liability side of the financial position, we can see that the company is still debt-free. Adjusted EBITDA. The quarterly non-GAAP results reflect adjustments for the following items: depreciation and amortization, share-based payments, and other non-operational items. For the three months ended 31 March 2026, adjusted EBITDA was -CAD 265,000, compared to +CAD 208,000 for the same period in 2025. The decrease in adjusted EBITDA was mainly driven by the increase in operating loss. With that, I will turn the call back to Marten.

Speaker #5: Total working capital amounted to 4.2 million compared to 5.1 million at December 31st, 2025. A decrease of 0.9 million or 18%. As for the liability side of the financial position, we can see that the company is still debt-free.

Speaker #5: Adjusted EBITDA. The quarterly non-gap results reflect adjustments for the following items: depreciation and amortization, share-based payments, and other non-operational items. For the three months ended March 31st, 2026, adjusted EBITDA was negative 265,000 compared to positive 208,000 for the same period in 2025.

Speaker #5: The decrease in adjusted EBITDA was mainly driven by the increase in operating loss. With that, I will turn the call back to Martin.

Speaker #4: Thank you so much, Amit. With that, we would like to move on to the Q&A portion. I will have a couple of questions that came in.

Marten: Thank you so much, Amit. With that, we would like to move on to the Q&A portion. I have a couple questions that came in. First question is for you, Omri. North America declined 7%, but you're seeing stabilization signals. What specific actions are on the way to turn that into positive growth this year?

Martijn van den Bemd: Thank you so much, Amit. With that, we would like to move on to the Q&A portion. I have a couple questions that came in. First question is for you, Omri. North America declined 7%, but you're seeing stabilization signals. What specific actions are on the way to turn that into positive growth this year?

Speaker #4: First question is for you, Omri. North America declined 7%, but you're seeing stabilization signals. What specific actions are on the way to turn that into positive growth this year?

Omri Brill: Fair enough. Yes, we are happy, you know, with the direction that this important market is going. We believe it is stabilizing, actually, we are expecting to see, like, it returning back to positive growth trend as the year unfold. I mean, there's a lot of focus now that we are putting on this market, whether it's Proposaly related, you know, that's gonna be the biggest market for us when we're gonna go fully on marketing with Proposaly. A lot of initiatives that you are yourself involved with regards to partnership as well. You know, you and I just came back from a very successful event, TikTok, in New York City. Again, this market is on the radar. We understand its importance.

Speaker #1: Fair enough. So yes, we are happy with the direction that this important market is going. We believe it is stabilizing actually, and we are expecting to see return back to positive growth trend as the year unfolds.

Speaker #1: I mean, there's a lot of focus now that we are putting on this market, whether it's proposally related, there's going to be the biggest market for us when we're going to go fully on marketing with proposally.

Speaker #1: And again, a lot of initiatives that you are yourself involved with, with regards to partnership as well. You and I just came back from a very successful event, TikTok Invent, in New York City.

Speaker #1: So again, this market is on the radar. We understand it's a policy; we understand what it can bring to a company like Adcore. And you're going to see great things coming from this market in 2026 and beyond.

Omri Brill: We understand what it can bring to a company like Adcore, you're going to see great things coming from this market in 2026 and beyond.

Marten: Great, Omri. I echo that. A lot of opportunities on both partnership front and AI capabilities in our tech stack. The following question I think is a bit more financial nature, so maybe for Amit to answer. Constant currency growth was closer to 27%. Are you considering hedging strategies so reported results better reflect the underlying operational momentum?

Martijn van den Bemd: Great, Omri. I echo that. A lot of opportunities on both partnership front and AI capabilities in our tech stack. The following question I think is a bit more financial nature, so maybe for Amit to answer. Constant currency growth was closer to 27%. Are you considering hedging strategies so reported results better reflect the underlying operational momentum?

Speaker #4: Great, Omri. And I echo that. A lot of opportunities on both partnership front and AI capabilities in our tech stack. The following question, I think, is a bit more financial nature.

Speaker #4: So, maybe for Amit to answer. Constant currency growth was closer to 27%. Are you considering hedging strategies so reported results better reflect the underlying operational momentum?

Speaker #3: Thanks, Martin. So basically, the company has past experience with hedging, which is not that good. We are trying as much as we can to align the revenue with the expenses for each of the different currencies that we work in.

Amit Konforty: Thanks, Marten. Basically, the company has past experience with hedging, which is not that good. We are trying as much as we can to align the revenue with the expenses for each of the different currencies that we work in. Let's say that the Israeli shekel is strengthening against the US dollar, then we take the proactive measures to reduce the expenses and to increase revenues in Israeli shekel in order to reduce as much as possible the exchange rate that impact on this.

Speaker #3: And let's say that the Israeli shekel is strengthening against the US dollar. Then we take proactive measures to reduce expenses and to increase revenues.

Speaker #3: In Israeli shekel. In order to reduce as much as possible the exchange rate impact on this.

Speaker #1: Yeah, I can echo what Amit said. Basically, we try before to hedge. It didn't really work because you don't really control the direction the currency is going.

Omri Brill: Yeah, I can echo what Amit says. Basically, we tried before to hedge. It didn't really work because you don't really control the direction the currency is going. We believe that, A, the company is quite diverse, right? We have revenue and expenses in multiple currencies, whether it's AUD, Israeli shekel, USD, Canadian dollar, Hong Kong dollars, and others. Basically, we are very much diverse. The key things for us, I would say, is making sure that we have expenses in Israeli shekels, we need to have income in Israeli shekels as well covering. That's the best hedge, I would say, that we can take.

Speaker #1: We believe that, A, the company is quite diverse, right? We have revenue and expenses in multiple currencies, whether it's AUD, Israeli shekel, USD, Canadian dollar, Hong Kong dollars, and others.

Speaker #1: So basically, we are very much diverse. The key things for us, I would say, is making sure that if we have expenses in Israeli shekels, then we need to have income in Israeli shekels as well, covering it.

Speaker #1: So that's the best edge, I would say, that we can take.

Speaker #4: Thank you both. Thank you. The next question is about R&D spending, which came down 24% year over year. Is that sustainable by your simultaneously investing in proposedly and AI Studio?

Marten: Thank you both. Thank you. The next question is about R&D spending, which came down 24% year over year. Is that sustainable while you're simultaneously investing in Proposaly and AI Studio?

Martijn van den Bemd: Thank you both. Thank you. The next question is about R&D spending, which came down 24% year over year. Is that sustainable while you're simultaneously investing in Proposaly and AI Studio?

Speaker #1: Actually, it's a fair and interesting question. I would say a few things. A, shareholders need to bear in mind that we are capitalizing most of the R&D expenses.

Omri Brill: Actually, it's a fairly interesting question. I would say a few things. Shareholders need to bear in mind that we are capitalizing most of the R&D expenses. Having said that, we also have past, I would say, products that we capitalize, like Amphy, that we already now need to acknowledge them. Basically, in the end of the day, this is more or less flattening, you know, the R&D expenses. Some is capitalized, and some we need to show already. I do think that what change a lot is AI coding, right? What we can do now using AI, I would say, is developer can develop x 5, you know, more code, faster code, than if we need even to compare it to 1 year ago.

Speaker #1: Having said that, we also have passed, I would say, products that we capitalize, like Amfi, that we already now need to acknowledge them. So basically, in the end of the day, this is more or less flattening the R&D expenses.

Speaker #1: Some is capitalized, some we need to show already. I do think that what changed a lot is AI coding, right? So what we can do now using AI, I would say, is developer can develop X5 more code, the faster code.

Speaker #1: Then if we need even to compare it to one year ago. So I think for the long run, with the same amount of developers, or even sometimes even less, we can do much more.

Omri Brill: I think, like, for the long run, with the same amount of developers, or even sometimes even less, we can do much more. We can build much more sophisticated technology. I think, like, in that front, I would say things are looking very positive for software development. Means we don't need to increase cost so much, but we can definitely increase, you know, productivity and what we can ship and deliver.

Speaker #1: We can build much more sophisticated technology, so I think on that front, I would say things are looking very positive. For software development, it means we don't need to increase costs so much, but we can definitely increase productivity and what we can ship and deliver.

Marten: That makes sense. Thank you. Another question on the trade payables. They dropped from CAD 8.4 million to CAD 4.8 million, consistent with your seasonal media disbursement explanation. Does the predictability of this holiday cycle give you better cash flow visibility going forward?

Martijn van den Bemd: That makes sense. Thank you. Another question on the trade payables. They dropped from CAD 8.4 million to CAD 4.8 million, consistent with your seasonal media disbursement explanation. Does the predictability of this holiday cycle give you better cash flow visibility going forward?

Speaker #4: That makes sense. Thank you. Another question on the trade payables. They dropped from 8.4 million to 4.8 million, Canadian dollars. Consistent with your seasonal media, disbursement explanation.

Speaker #4: Does the predictability of this holiday cycle give you better cash flow visibility going forward?

Omri Brill: Amit, you wanna take this one?

Speaker #1: Amit, you want to take this one?

Amit Konforty: Yeah, definitely. Yeah, in the advertising business, we see this seasonality of Q4, which is very high in activity, which usually the payments for the Q4 expenses are done in Q1. We are very aware of this cycle.

Speaker #3: Yeah, definitely. Yeah, so in the advertising business, we see this seasonality of Q4, which is very high in activity, which usually the payments for the Q4 expenses are done in Q1.

Speaker #3: So we are very aware of this cycle. And we expect it to be also in forward in later years, the same. So I think it is predictable.

Amit Konforty: We expect it to be also in forward, in later years the same.

Omri Brill: Yeah

Marten: It is predictable.

Martijn van den Bemd: It is predictable.

Omri Brill: Yeah, I think like a typical year for us, we're starting like a, I would say losing cash a bit because of seasonality, and as the year unfolds, we regain this cash, you know. We are continue to be positive about what we can do in 2026, and again, this is part of the normal course of, I would say, the business seasonality.

Speaker #1: Yeah, I think a typical year for us, we're starting I would say losing cash a bit because of seasonality. And as the year unfolds, we regain this cash.

Speaker #1: So we are continuing to be positive about what we can do in 2026. And again, this is part of the normal course of, I would say, the business seasonality.

Marten: Great. Thank you both. Another question that just came in on the financial side is, could you provide commentary about EBITDA growth trajectory in the rest of the year? Do we expect EBITDA to improve on a year-on-year basis moving forward instead of declining?

Martijn van den Bemd: Great. Thank you both. Another question that just came in on the financial side is, could you provide commentary about EBITDA growth trajectory in the rest of the year? Do we expect EBITDA to improve on a year-on-year basis moving forward instead of declining?

Speaker #4: Great. Thank you both. Another question that just came in on the financial side is, could you provide commentary about EBITDA growth trajectory in the rest of the year?

Speaker #4: Do we expect EBITDA to improve on a year-on-year basis, moving forward instead of declining?

Omri Brill: Maybe I take that. I would say the short answer is yes, EBITDA should be positive for 2026. Again, Q1 is, I would say, difficult quarter in that remarks. You know, like there's a lot going on. There's a lot of expenses that are related to Q4 that's actually happening in Q1. That's already part in the equation, I would say. Again, the EBITDA was more or less flattened. I think like if we look it yearly, then definitely we should be able to, you know, to showcase positive EBITDA year as usual, I would say.

Speaker #1: So maybe I’ll take that. I would say the short answer is yes. EBITDA should be positive for 2026. Again, Q1 is, I would say, a difficult quarter in that regard.

Speaker #1: There's a lot going on. There are a lot of expenses that are related to Q4 that are actually happening in Q1, so that's already part of the equation.

Speaker #1: I would say, and again, the EBITDA was more or less flattened. So I think if you look at early, then definitely we should be able to showcase positive EBITDA year as usual, I would say.

Speaker #4: Thank you. Thank you. Going to move on to a couple of questions that came in on the AI products and the outlook on the product development.

Marten: Thank you. Thank you. Gonna move on to a couple questions that came in on the AI products and outlook on the product development. First around Proposaly, the inbound agent is in production and the AI Studio is getting strong beta feedback. Can you share any early quantifiable metrics such as users, pipeline influence, conversion rates, just to help investors, size the opportunity?

Martijn van den Bemd: Thank you. Thank you. Gonna move on to a couple questions that came in on the AI products and outlook on the product development. First around Proposaly, the inbound agent is in production and the AI Studio is getting strong beta feedback. Can you share any early quantifiable metrics such as users, pipeline influence, conversion rates, just to help investors, size the opportunity?

Speaker #4: First, around proposedly, the inbound agent is in production, and the AI Studio is getting strong better. Feedback. Can you share any early quantifiable metrics such as users, pipeline influence, conversion rates, just to help investors size the opportunity?

Omri Brill: Okay. I would say the following: it's a bit too early to, you know, to share this type of metrics with the shareholders, but I would say in terms of, let's say, the size of opportunity, is it's big as it can get, you know. Like I say, if we're talking Proposaly, and it basically solve, you know, like, the issues that most of businesses in planet Earth are basically struggling with, which is basically sales.

Speaker #1: Okay, I would say the following. It's a bit too early to share this type of metrics with the shareholders, but I would say in terms of, let's say, the size of our opportunity, it's big as it can get.

Speaker #1: Like I say, if we're talking proposedly, and basically it's all the issues that most of businesses on planet Earth are basically struggling with, which is basically sales.

Speaker #1: So every business that starts with lead—and basically needs to turn this lead into revenue—and again, this is most of the businesses on planet Earth, whether it's services like the pest control action company that we saw from Arizona, or whether it's, I don't know, like a college, for example, that basically wants to recruit new students to start the next year with them.

Omri Brill: Every business that start with lead and basically need to turn this lead into revenue. Again, this is most of the businesses in planet Earth, whether it's own services like the pest control ACTION company that we show from Arizona, whether it's a I don't know, like in a college, for example, that basically want to recruit new students to start, you know, like the next year with them. Whether it's a company, a tech company or services company like Adcore that serve, you know, clients for digital marketing or offering, you know, software to clients. All of these companies started their sales journey with a lead and basically need to convert this lead into revenue, basically then need to, like Proposaly, an agentic tool to help them to achieve exactly that.

Speaker #1: Whether it's a company tech company or services company, like Edcore, that serve clients for digital marketing or offering software, to clients. All of these companies started their sales generally with a lead and basically need to convert this lead into revenue.

Speaker #1: And basically, they need to proposedly an agentic tool to help them achieve exactly that. So we're talking about billions of billions of billions of market share, and this—the potential—is, I would say, unlimited.

Omri Brill: We're talking about billion of billion of billion of market share, and this is like the potential is, I would say, unlimited. This is just Proposaly. If we talk in AI Studio, again, like online marketing, it's a massive business. We're talking CAD hundreds of billions of dollars every year going to online marketing, and like I said, the single biggest bottleneck nowadays in online marketing, it's digital asset. It's the videos, it's the banner, it's everything that you need to create. We are tackling or solving the biggest problem nowadays in online marketing, and that show you know, the potential of a tool like AI Studio.

Speaker #1: So that's just this is just proposedly. And if we're talking AI Studio, then again, online marketing, it's a massive business. We're talking hundreds of billions of dollars every year going to online marketing.

Speaker #1: And like I say, the single biggest bottleneck nowadays in online marketing, it's digital assets. It's the videos. It's the banner. It's everything that you need to create.

Speaker #1: So we are tackling or solving the biggest problem nowadays in online marketing. And that shows you the potential of a tool like AI Studio F2F.

Omri Brill: Like I said, we are getting like the feedback that we are getting from early user is like, Wow. Like we couldn't believe like, Where were you guys, you know, like, I don't know, 1 year ago or even, 6 months ago? That's exactly what keep us, you know, so excited about the solution we are building and why we continue working so hard, you know, like building it, improving it, and making sure that we are the best out there, which we are currently.

Speaker #1: And like I say, we are getting the feedback that we are getting from early user is like, wow, we couldn't believe where were you guys?

Speaker #1: I don't know—a year ago, even six months ago. And that's exactly what keeps us so excited about the solution we are building and why we continue working so hard.

Speaker #1: Building it, improving it, and making sure that we are the best out there—which we are, currently.

Marten: That's great. Yeah, that's a great testament how fast AI is developing and how Adcore is able to adapt and leverage that. Given the time, we have room for one or two more questions, and then I'm gonna add to the closing remarks. One more question around the product stack. How are you thinking about cross-selling these new AI products into your existing Marketing Cloud client base?

Martijn van den Bemd: That's great. Yeah, that's a great testament how fast AI is developing and how Adcore is able to adapt and leverage that. Given the time, we have room for one or two more questions, and then I'm gonna add to the closing remarks. One more question around the product stack. How are you thinking about cross-selling these new AI products into your existing Marketing Cloud client base?

Speaker #4: That's great. Yeah, and that's a great testament how fast AI is developing and how Edcore is able to adapt and leverage that. Given the time we have room for one or two more questions, and then I want to head to the closing remarks.

Speaker #4: One more question around the product stack. How are you thinking about cross-selling these new AI products into your existing marketing cloud client base?

Omri Brill: It's a good question, I would say, I wouldn't think that people would be surprised for my answer, but the first phone call that we are doing is for existing clients, right? If we launch AI Studio, the first phone calls were to existing clients. Hey, we have something amazing to show you guys, you know, and we want you guys to test it, to try it, to see, and to give us your feedback. I think like existing client base are the best type of clients we can, you know, like, work with when we launch new product, whether it's Proposaly, whether it's AI Studio. Trust me, these are almost and always gonna be the first phone calls that we're gonna make when we launch something new. You can trust on it.

Speaker #1: It's a good question. I would say, and I wouldn't think that people would be surprised for my answer, but the first phone calls that we are doing is for existing clients, right?

Speaker #1: So if we launch AI Studio, the first phone calls were to existing clients: 'Hey, we have something amazing to show you guys.' And we want you guys to test it, to try it, to see, to give us your feedback.

Speaker #1: So I think existing client base are the best type of client we can work with when we launch new product, whether it's proposedly, whether it's AI Studio.

Speaker #1: So, trust me, these are almost always going to be the first phone calls that we're going to make when we launch something new.

Speaker #1: You can trust on it.

Speaker #4: Thank you, Omri. And the last question for today. Is proposedly strategically planning to position itself more aggressively into the growing high-ticket sales market?

Marten: Thank you, Omri. The last question for today, is Proposaly strategically planning to position itself more aggressively into the growing high-ticket sales market?

Martijn van den Bemd: Thank you, Omri. The last question for today, is Proposaly strategically planning to position itself more aggressively into the growing high-ticket sales market?

Omri Brill: That's actually an interesting question or remark, and I would say the following. I'll answer this question with a story. When we initially thought about Proposaly, and it was just an idea, you know, that sit in the drawer of nice things to do, startups to build, that basically the ICP that we were thinking about was own services, small businesses, you know. There's plenty of them on planet Earth. You know, if we talk in US alone, pest control business is $25 billion yearly. Just from pest control services in the US. It's massive market and roofer and construction and, you know, like air condition. We're talking about like multi-billions, you know, almost $1 trillion, I would say, just on services in the US maybe, accumulative or half a trillion.

Speaker #1: That's actually an interesting question or remark, and I would say the following. After this question with the story—when we initially thought about Proposedly, and it was just an idea that's sitting there, a list of nice things to do, startups to build—then basically the ICP that we were thinking about was on services, small businesses.

Speaker #1: And there's plenty of them on planet Earth. If we're talking US alone, pest control business, it's 25 billion dollars yearly. Just on pest control services in the US.

Speaker #1: So it's massive market. And Ed Roofer, Ed Construction, Ed Air Condition, we're talking about multi, multi billions, almost trillion dollars, I would say, just on services in the US maybe.

Speaker #1: Accumulative or half a trillion. It's big numbers that we are talking about. And these numbers are actually built up from a lot, a lot of small businesses in different towns and cities within the US, for example, and other places in the world as well.

Omri Brill: You know, like it's big numbers that we are talking about. These numbers are actually built up from a lot of small businesses in different towns and cities within the US, for example, and other places in the world as well. We said, "Okay, let's build something for this group of people." Like I say, it's not a small group, right? It's like a big industry by itself. When we start building Proposaly, we say, wait, even company like us, like Adcore, should actually use Proposaly to send proposals, you know, to clients. We are high ticket like this equation saying markets.

Speaker #1: And we said, "Okay, let's build something for this group of people." And like I say, it's not a small group, right? It's like a big, big industry by itself.

Speaker #1: And then when we start building proposedly, we say, "Wait, even a company like us, like Edcore, should actually use proposedly to send proposals to clients." And we are high-ticket, like this question saying, markets.

Omri Brill: I would say if you're in a lead to revenue business, which most, you know, businesses in planet Earth are still in this business, then definitely you should use Proposaly. That would be my answer. I don't care if you are home services from, you know, like from Arizona, for example, from Phoenix, Arizona, or you are an tech company sitting in Tel Aviv, Israel. It doesn't matter. You're in the lead to revenue business, you need to use Proposaly.

Speaker #1: I would say, if you're in a lead to revenue business, which most businesses in planet Earth are still in this business, then definitely you should use proposedly.

Speaker #1: That would be my answer. So I don't care if you are on services from Arizona, for example, from Phoenix, from Phoenix, Arizona, or you are in a tech company, sitting in Tel Aviv, Israel.

Speaker #1: It doesn't matter. You are in a lead to business. You're in a lead to revenue business. You need to use proposedly.

Marten: Thanks so much, Omri. Very exciting to hear about this potential. With that, is any closing remarks you want to share with the audience today before we wrap up the call?

Martijn van den Bemd: Thanks so much, Omri. Very exciting to hear about this potential. With that, is any closing remarks you want to share with the audience today before we wrap up the call?

Speaker #4: Thanks so much, Omri. Very exciting to hear about this potential. With that, are there any closing remarks you want to share with the audience today before we wrap up the call?

Omri Brill: I think like we cover a lot, right? We start, and this is also something Amit Konforty mentioned as well, we ended up 2026 strong. Q4 result was really strong for us, and we started Q1 2026 strong as well. That means the same momentum that we saw in the end of the year in 2025 is carried well into 2026. That always keep us, you know, very positive about what we can achieve as the year unfold. What even keep us more positive is the, I would say, level of innovation and the depth of innovation now we can do using AI. We give you like few, I think, like astonishing examples, you know, like about the inbound agent.

Speaker #1: So I think we covered a lot, right? We start, and this is also something Amit mentioned as well. We ended up 2026 strong in Q4 result was really strong for us.

Speaker #1: And we started Q1 2026 strong as well. So that means the same momentum that we saw in the end of the year in 2025 is carried well into 2026.

Speaker #1: That's always keep us very positive. About what we can achieve as the year unfolds. But what even keep us more positive is the, I would say, level of innovation and the depth of innovation now we can do using AI.

Speaker #1: And we give you few, I think, astonishing examples about the inbound agents. I speak with him. On the fly, generate a custom quote for me for ants cultural issues that I have.

Omri Brill: I speak with him on the fly, generate a custom quote for me for uncontrolled issue that I have. Like can send it to other, you know, send it in the chat. He can like send it to my WhatsApp or email, whatever contact detail I gave him. You show like how I can easily in minutes create astonishing, you know, like banners, UGC video, commercial ads, you know. All of that that you see right now wasn't exist in the beginning of 2026. This is something we built and shipped during Q1 2026, and this is like That's amazing. Again, Adcore is changing. We're becoming like a full AI company. The potential is massive for us and I think like that's the best story to say, to tell some right now, and we are excited about what things ahead of us, you know.

Speaker #1: And send it over. Send it in the chat. Send it to my WhatsApp or email, whatever. Contact detail I gave him. You show how I can easily, in minutes, create astonishing banners.

Speaker #1: UGC video, commercial ads. All of that that you see right now wasn't existing in the beginning of 2026. So this is something we built and shipped during Q1 2026.

Speaker #1: And this is amazing. So again, Adcore is changing. We're becoming a full AI company. The potential is massive for us. And I think that's the best story to tell someone right now.

Speaker #1: And we are excited about what things ahead of us. That's the honest truth.

Omri Brill: That's the honest true.

Marten: All right. Exciting things ahead. With that, we conclude the earnings call Q1 2026. We thank you, of course, Omri and Amit, and most of all, we thank you everyone who's joining this earnings call today. We look forward to seeing you next time, and for now, wish you a great rest of your day. Thank you.

Martijn van den Bemd: All right. Exciting things ahead. With that, we conclude the earnings call Q1 2026. We thank you, of course, Omri and Amit, and most of all, we thank you everyone who's joining this earnings call today. We look forward to seeing you next time, and for now, wish you a great rest of your day. Thank you.

Speaker #4: All right. Exciting things ahead. With that, we conclude the Honest Call Q1 2026. We thank you, of course, Omri and Amit. Most of all, we thank you, everyone.

Speaker #4: Who's joining this Honest Call today. We look forward to seeing you next time. And for now, wish you a great rest of your day.

Speaker #4: Thank you.

Omri Brill: Thanks, guys.

Speaker #1: Thanks, guys.

[Analyst]: Thank you.

Amit Konforty: Thank you.

Speaker #2: Thank you.

[Analyst]: Goodbye.

Operator: Goodbye.

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