Route1 Reports Third Quarter 2026 Results

TORONTO, ON / ACCESS Newswire / November 9, 2026 / Route1 Inc. ("Route1" or the "Company") (TSXV:ROI), a provider of technology-enabled services focused on parking operations, public safety, and mobility, today announced its financial results for the three and nine months ended September 30, 2026.

All results are shown in Canadian dollars unless noted otherwise.

Q3 and year to date 2026 financial notes

• Revenue increased 2% sequentially to $2.437 million from $2.399 million in Q2.
• Gross profit increased 11% sequentially to $1.202 million; gross margin expanded to 49% from 45%.
• Operating income before other income and expense was $83,000, compared with a $128,000 loss in Q2.
• Adjusted EBITDA increased to $251,000 from $43,000 in Q2 and $220,000 in Q3 2025, and recurring revenue was up 48% sequentially to US$831,000, and recurring gross profit was up 45% to US$520,000. Adjusted EBITDA, recurring revenue, recurring gross profit, net debt and adjusted working capital are non-IFRS financial measures. They have no standardized meaning under IFRS and may not be comparable with other issuers' measures.
• Nine-month operating cash flow increased to $602,000 from $345,000 a year earlier.
• Net debt declined by $115,000 from June 30, 2026, while adjusted working capital improved by $236,000 over the same period. Net debt comprises bank indebtedness and notes payable (including promissory notes), less cash, and excludes lease liabilities, and adjusted working capital excludes current bank indebtedness, notes payable, contract liabilities and lease liabilities.

"We are shifting Route1 from a business driven by one-time hardware sales and projects toward recurring licenses, support and operational services. Lower transactional revenue has reduced total revenue during that transition, but recurring customer relationships are contributing more revenue and gross profit. In Q3, total revenue grew from Q2, gross profit increased more than 10% and we returned to positive operating income," said Tony Busseri, Chief Executive Officer of Route1. "Our priority is to build on these results, convert more customer opportunities into recurring relationships and continue reducing debt."

Q3 2026 compared to Q3 2025 financial notes

Compared with Q3 2025, Q3 2026 revenue declined 18%, while gross profit increased 2% and subscription revenue and services grew 23%. Net loss was $23,000, compared with net income of $253,000. The prior-year quarter included $309,000 of employee retention credit (ERC) income, Q3 2026 had none. Foreign exchange moved from a $22,000 gain to a $68,000 loss.

Statement of operations

Summary balance sheet

Adjusted EBITDA

Adjusted EBITDA adds depreciation and amortization to reported operating income (loss); no other adjustments apply. Management uses it to assess operating performance and debt-service capacity. It is not a substitute for reported operating income, its closest IFRS measure.

Quarterly recurring revenue and gross profit

Amounts in thousands of U.S. dollars. The same definitions apply to all periods.

Revenue recognized over the service term decreased by US$20,000, from US$337,000 in Q2 2026 to US$317,000 in Q3 2026, reflecting the timing of customer renewals and a one-time reduction in revenue of US$24,959 in August 2026.

Recurring revenue grew 37% year over year; recurring gross profit grew 52%.

Recurring revenue includes continuing software, license, support and operational-service revenue, including qualifying Genetec renewals, under reported gross or net presentation. MobiKEY and one-time activity are excluded. Recurring GP deducts associated direct costs without double-counting net supplier amounts. Management uses these historical measures to assess recurring customer relationships; reported revenue and GP are the closest IFRS measures.

Reconciliation of recurring revenue and recurring gross profit

U.S.-dollar recurring measures are translated using the exchange rates applied in consolidation. Excluded activity includes MobiKEY, non-recurring operations and applicable consolidation adjustments.