Sabio Announces Second Quarter 2026 Results

TORONTO, Aug. 19, 2026 /PRNewswire/ -- Sabio Holdings Inc. (TSXV: SBIO) (OTCQB: SABOF) (the "Company" or "Sabio"), a Los Angeles-based creator-led, data-driven and AI-powered ad-tech company helping global brands reach, engage and validate (R.E.V.) streaming TV audiences, today announced its consolidated financial results for the three and six months ended June 30, 2026. Unless otherwise indicated, all amounts are expressed in U.S. dollars.

"Q2 provides early indications that the investments we have made in key growth areas, including App Science® AI-driven U.S. Programmatic, EMEA and the creator economy, are beginning to pay off through customer growth, retention and margin acceleration," said Aziz Rahimtoola, CEO of Sabio. "Gross margin increased to 61% from 53% in the first quarter, while EMEA revenue reached approximately $1.9 million and U.S. Programmatic revenue reached approximately $2.9 million in the quarter. Our U.S. Programmatic customer base increased 116% year-over-year, approximately 90% of U.S. Programmatic customers renewed from Q1 into Q2, and we added 46 new customer logos globally (US and EMEA), up 77% from the prior year. Together, U.S. Programmatic and EMEA represented 49% of gross sales, compared with 10% in the prior-year quarter, reflecting the acceleration of our strategy to build a more diversified, creator-led, data-driven and AI-powered business."

"As we enter the second half of the year, we have more than $5 million in political and advocacy commitments secured and continue to see growth across our EMEA and U.S. Programmatic channels. Combined with the margin improvements and cost reductions implemented during the first half, we expect Adjusted EBITDA to return to profitability in the second half of 2026."

Second Quarter 2026 Financial Highlights

Business Highlights

Strategic Diversification Driving Growth

Creator Economy Expansion

Expanding and Retaining Customer Base

Political and Advocacy Momentum Building

Business Outlook

Sabio enters the second half of 2026 with improving financial performance and continued momentum across its highest-growth channels, including App Science® AI-driven U.S. Programmatic, EMEA expansion, newly incubated Creator TV® and its broader, mature ad-supported streaming business.

Gross margin increased from 53% in Q1 2026 to 61% in Q2 2026, while Adjusted EBITDA margin improved approximately 14 percentage points sequentially. The Company expects continued benefits from improved supply agreements, technology efficiencies and cost-reduction initiatives as volumes scale7.

Sabio's newer EMEA and U.S. Programmatic businesses have also historically been weighted toward the second half of the year. In fiscal 2025, approximately 88% of EMEA revenue and 82% of U.S. Programmatic revenue were generated during the second half. More broadly, Sabio generated approximately 69% of consolidated revenue in the second half of fiscal 2024, the Company's most recent U.S. political election year.

With more than $5 million in political and advocacy commitments already secured for the second half of 2026, continued growth across EMEA and U.S. Programmatic, strong customer retention and an improving margin and cost structure, management expects Adjusted EBITDA to return to profitability in the second half of 20267.

Conference Call

Sabio will host a conference call and webcast to discuss its Q2 2026 financial results and provide a business update.

Date: August 20, 2026Time: 10:00 a.m. ET / 7:00 a.m. PTWebcast Registration Link: https://bit.ly/SBIO-webinar 

A replay of the webcast will be available in the Financial Information section of Sabio's website following the event.

Selected Financials

(All figures in US$ unless otherwise noted)

The financial disclosures in this news release are subject to a number of cautionary statements, assumptions, contingencies and risks as set forth in this news release. The foregoing outlook and expectations constitute forward-looking statements and financial outlook and are qualified in their entirety by the "Forward-Looking Statements" cautionary statement below. Readers are cautioned that this release is for information purposes only and may not be appropriate for other purposes.

* Use of Non-IFRS MeasuresThis press release makes reference to certain non-IFRS (International Financial Reporting Standards) measures including, but not limited to, Adjusted EBITDA and Gross Revenue. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other companies and should not be considered in isolation nor as a substitute for analysis of financial information reported under IFRS. Rather, these non-IFRS measures are provided as additional information to complement IFRS measures by providing a further understanding of operations from management's perspective.

Management uses adjusted earnings before interest, income taxes, depreciation, and amortization ("Adjusted EBITDA") as a key financial metric to evaluate Sabio's operating performance as a complement to results provided in accordance with IFRS. The term "Adjusted EBITDA", as defined by management, refers to net income (loss) before adjusting earnings for finance costs, interest earned, income taxes, state and local taxes, stock-based compensation, amortization, amortization of lease, non-recurring items (including severance expenses, executive restructuring costs, foreign exchange differences, the employee retention tax credit received, expected credit losses on the loan against warrant exercise, and gains or losses on lease termination or modification), and severance costs. Management believes that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of Sabio. Management believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by Sabio's main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, restructuring costs, other expense (income), and foreign exchange (gain) loss. Accordingly, management believes that this measure may also be useful to investors in enhancing their understanding of Sabio's operating performance. It is a key measure used by Sabio's management and board of directors to understand and evaluate Sabio's operating performance, to prepare annual budgets, and to help develop operating plans. "Adjusted EBITDA margin," as used in this release, is calculated as Adjusted EBITDA divided by revenue, expressed as a percentage.

The term "Gross Revenue", as defined by management, represents revenue adjusted by adding back third-party platform costs that are deducted under IFRS presentation. This measure is intended to provide additional insight into the scale of Sabio's advertising operations, particularly in its programmatic advertising business. Management believes that Gross Revenue is useful supplemental information as it provides an indication of the overall transaction volume processed by Sabio's platform, which management uses to evaluate operational scale and market penetration. Accordingly, management believes that this measure may also be useful to investors in understanding the size and growth of Sabio's advertising operations. It is a key measure used by Sabio's management and board of directors to assess platform activity, monitor business trends, and support strategic planning.

Refer to reconciliation to Adjusted EBITDA and Gross Revenue under the "Selected Financials" section of this release and in the Company's MD&A for the three and six months ended June 30, 2026, and June 30, 2025, copies of which can be found under Sabio Holdings Inc.'s profile on SEDAR Plus at www.sedarplus.ca.

Reoccurring revenue6 is a supplementary financial measure. This measure refers to the percentage of quarterly revenue generated from customers who have previously transacted with Sabio (defined as those with the same brand logo). It is derived from internal tracking systems and is used to assess customer retention and revenue predictability. This metric is not audited.

Ad-supported streaming sales7 are supplementary financial measures that represent the proportion of the Company's consolidated revenue as reported in its financial statements contributed by the Company's ad-supported and mobile display product offerings, as is also presented in the Company's MD&A for the three and six months ended June 30, 2026, and June 30, 2025, copies of which can be found under Sabio's profile on SEDAR+ at www.sedarplus.ca.

Core ad-supported streaming revenue is a supplementary financial measure that represents revenue generated from Sabio's core streaming TV and mobile video advertising services, excluding revenue from political and advocacy advertising campaigns.

Programmatic revenue4 is a supplementary financial measure represents revenue earned from advertising transactions executed through programmatic platforms, including Sabio's and/or third parties.

EMEA revenue5 is a supplementary financial measure which represents revenue generated from customers located in Europe, the Middle East and Africa.

Forward-Looking Statements

This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, which is often, but not always, identified by the use of words such as "believes," "anticipates," "plans," "intends," "will," "should," "expects," "continue," "estimate," "forecasts," or the negative thereof and other similar expressions. All statements herein other than statements of historical fact constitute forward-looking information, including but not limited to, statements relating to Sabio's outlook for the remainder of fiscal 2026, including expectations on a return to Adjusted EBITDA profitability; expectations regarding growth in programmatic, and international; anticipated operating leverage, gross and/or Adjusted EBITDA margin expansion/improvement and cash flow visibility; expected increased demand for streaming TV and mobile video advertising during the 2026 U.S. mid‑term election cycle; the timing, magnitude and revenue mix of political and advocacy advertising spend; expectations regarding scalability of the Company's technology platform; anticipated benefits from revenue diversification initiatives; early‑stage indications of year‑over‑year growth rates in programmatic and international channels; and the Company's ability to maintain customer retention and reoccurring revenue levels. The more than $5 million in political and advocacy advertising commitments referenced herein represents non-binding commitments from political and advocacy advertisers and are subject to change; actual spend may differ materially from the amounts indicated. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements or historical financial performance. The Company undertakes no obligation to comment on analyses, expectations, or statements made by third parties in respect of the Company, its securities, or financial or operating results (as applicable). Material assumptions used to develop the forward-looking information in this press release include but are not limited to continued advertiser demand for connected TV and mobile video advertising; historical spending patterns associated with U.S. election cycles; successful execution and adoption of Sabio's programmatic, international and Creator TV offerings; stable pricing and availability of streaming inventory; continued access to data, measurement and distribution partners. Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors, and assumptions concerning future events that may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including fluctuations or delays in political and advocacy advertising spend; changes in advertiser budgeting or campaign timing; continued or worsening macroeconomic conditions, including tariff‑related impacts affecting key advertiser verticals; increased competition in the ad‑tech and streaming advertising markets; changes in consumer viewing behavior; pricing pressure or shifts in advertising mix; reliance on third‑party platforms, data providers and cloud infrastructure and other risk factors disclosed in the Company's annual information form and management's discussion and analysis (MD&A), which are publicly available on SEDAR Plus at www.sedarplus.ca. The Company has assumed that the material factors referred to herein will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information: Sajid Premji, Chief Financial Officer, [email protected], Phone: 1.844.974.2662; Sam Wang, Investor Relations, [email protected]

SOURCE Sabio Inc.