Pivotree Announces Fourth Quarter 2025 Results

Pivotree Completes Turnaround to Full Year Profitability, Ending 2025 with $6.7 Million in Adjusted EBITDA, $4.3M in Net Income and $12.8M in Cash Balance

TORONTO, ON / ACCESS Newswire / March 26, 2026 / Pivotree Inc. (TSXV:PVT) ("Pivotree" or the "Company"), a leader in frictionless commerce solutions, today reported financial results for the three and twelve month period ended December 31, 2025. All amounts are expressed in Canadian dollars unless otherwise stated.

"We delivered on our commitment to operational excellence and free cash flow¹ generation while strategically positioning ourselves for the next phase of growth that is supported by a healthy balance sheet" said Bill Di Nardo, CEO of Pivotree. "Pivotree ensures customers have the right product data, in the right format, in the right systems - increasingly at AI-powered speed and a fraction of traditional cost."

Pivotree also announced today that it has released a letter to shareholders from Bill Di Nardo, CEO. The letter and other filings can be accessed from the Company's website at investor.pivotree.com and have been filed on SEDAR at www.sedar.com.

The results announced today, further detailed in our Management's Discussion and Analysis (MD&A) and the accompanying Q4 2025 CEO Letter, mark the successful completion of Pivotree's foundational turnaround. Throughout 2025, the business transitioned toward a high-margin, cash-generative model by balancing the planned wind-down of legacy managed services with a disciplined focus on operational excellence. As we enter 2026, our strategy shifts from stabilizing the core to accelerating growth through the 'agentic commerce' landscape. By retooling our service catalogue with AI-enabled automation and moving toward outcome-oriented pricing, we are evolving our revenue mix to provide clients with faster, lower-cost digital transformations while driving long-term value for our shareholders.

Fourth Quarter 2025 Financial Highlights

(All figures are in Canadian dollars and all comparisons are relative to the three-month period ended December 31, 2024 unless otherwise stated):

• Net income of $0.5 million compared to a net loss of $0.2 million for the prior year period, primarily due to reduced operating expenses as a result of prior year restructure efforts.

• Adjusted EBITDA¹ of $1.2 million compared to an adjusted EBITDA¹ of $1.7 million for the prior year period. The consistent achievement of positive EBITDA is the result of the continued discipline and focus on gross margins and operating expenses.

• The business realized sequential quarter growth within Managed and IP Solutions (MIPS) which was offset by declines in Professional Services as described below, leading to total revenue of $14.9 million and a 18.4% decline from Q4 2024

  • Managed and IP Solutions (MIPS) Revenue increased 22.2% to $4.1M in Q4 2025, from $3.4M in Q4 2024, related to growth was delivered largely through the expansion of transactional SKUs.

  • Legacy Managed Services (LMS) Revenue declined 52.4% to $2.1M in Q4 2025, from $4.5M in Q4 2024, related to churn and melt of Legacy Oracle customers.

  • Professional Services Revenue of $8.6 million, a decrease of 17.0%. These three month ended results are related to the completion of certain system integration projects across our categories that were partially offset with growth within new data and integration services.

• Gross margin improved to 46.0% of total revenue yielding gross profit of $6.8 million, compared to $8.0 million or 44.0% of revenue for the prior year period. This was driven by stronger MIPS & LMS combined margins, largely through the efficiencies in producing transactional SKUs.

Fourth Quarter 2025 Business Highlights

• The Commerce group secured a notable multi year Integration Services contract in Q4, encompassing both Professional and Managed Services. This milestone win validates the company's new AI-enabled delivery model, which is driving increased efficiency and competitive differentiation. Momentum remained strong across our partner ecosystem, with a series of key renewals and extensions for clients on Shopify, VTEX, and SAP.

• The Data team captured five new logos in Q4. This includes four wins specifically within Strategic Data Services. The team also secured renewals and extensions on projects across partner platforms including Syndigo, Stibo, and Akeneo Overall the quarter produced one of the strongest quarterly bookings within our Data solution offerings

• The Supply Chain business expanded Fluent OMS engagements through several PS extensions and secured a one-year renewal for a key Control Tower contract.

Fourth Quarter 2025 Results

Selected Financial Measures

Results of Operations

The following table outlines our consolidated statements of income (loss) and comprehensive income (loss) for the three and twelve months ended December 31, 2025 and 2024.

Cash Flows