A peer-reviewed, multi-clinic study published in the Journal of Assisted Reproduction and Genetics suggests an epigenetic sperm-quality profile can add missing information for infertile couples and clinicians, especially when they are considering IUI (Intrauterine Insemination), IVF (In Vitro Insemination), and/or ICSI (Intracytoplasmic Sperm Injection).
Path Fertility’s review of this capstone research, including the data gathered from preceding studies, confirms clinical data show that “up to 25% of men with a ‘normal’ Semen Analysis result have sperm that are incapable of producing a healthy pregnancy without intervention via advanced fertility techniques.”
SALT LAKE CITY, UT / ACCESS Newswire / March 10, 2026 / A newly published, peer-reviewed study adds real-world evidence that some couples are stuck in “fertility limbo” even after a Semen Analysis comes back “normal.”
According to Andy Olson, CEO and Co-Founder of Path FertilityTM, while it’s obvious that traditional Semen Analysis testing is a crucial first step for understanding sperm viability, for many infertile couples, Semen Analysis alone is not enough.
“This new study reinforces what so many couples experience firsthand: ‘normal’ Semen Analysis test results don’t always come with answers,” Olson said. “In fact, our review of the clinical data shows that up to 25% of men with a ‘normal’ Semen Analysis result have sperm that are incapable of producing a healthy pregnancy without intervention via advanced fertility techniques.
“When couples are stuck in such fertility limbo, they deserve better information sooner. Peer-reviewed, real-world evidence like that shown in this JARG report (and data gathered from prior studies), can help patients and clinicians have a more informed conversation about what to try next and what expectations are realistic.”
PHOTO CAPTION: Andy Olson, CEO and Co-Founder of Path Fertility. March 2026.
What the JARG Study Found
The JARG study analyzed outcomes from 537 couples treated at 10 U.S. fertility clinics and reported a clear pattern: when men had an Abnormal result on an epigenetic sperm test, no pregnancies were recorded from Intrauterine Insemination (IUI) in the outcomes captured in this real-world dataset. {NOTE: Epigenetics is a DNA-level method for scientists to study how cells turn genes on and off, including within sperm cells.}
By contrast, outcomes for in-vitro fertilization (IVF) using Intracytoplasmic Sperm Injection (ICSI) did not show a meaningful difference based on the epigenetic result.
A Quick Translation of the Treatments Mentioned in the Study
To understand why these findings matter, it can help to understand the difference between common fertility treatments. For example,
IUI (intrauterine insemination) is a procedure in which sperm is placed into the uterus around the time of ovulation. It is often tried early by couples attempting to overcome fertility challenges because it is less invasive and less costly than IVF;
IVF (in vitro fertilization) is a process where eggs are retrieved and fertilized in a lab; and
ICSI (intracytoplasmic sperm injection) is a common IVF technique where a highly trained IVF lab embryologist injects a single sperm into an egg to help fertilization occur.
What Semen Analysis Can Show and What it Cannot
Within the medical community, a Semen Analysis test is considered the “Standard of Care” in the field of infertility when it comes to identifying how many sperm are present in a semen sample, how they look, and how they move.
But a Semen Analysis test does not answer the question most infertile couples care about the most: Can these sperm do the job needed to create a pregnancy, especially with a treatment like IUI?
In reality, some sperm can look “normal” with a Semen Analysis test, but still struggle with the key functions required for conception: finding the egg, binding to the egg, penetrating the egg, and fertilizing the egg.
What the Newer Test Looks at, in Plain English
The new JARG study focuses on a still new sperm test based on epigenetics that measures chemical markers that help control how genes behave and how well sperm are likely to function.
SpermQT™, the new sperm-DNA test offered by Path Fertility, is designed to complement Semen Analysis testing by providing this additional epigenetics information about sperm quality and function.
PHOTO CAPTION: The at-home version of SpermQT, a newsperm-DNA test offered by Path Fertility. March 2026
Why this New JARG Study Matters Now
What makes this JARG paper important is that it reports real-world outcomes across 10 clinics, based on anonymous patient data.
Specifically, the JARG study showed that for IUI outcomes, “Abnormal” epigenetic sperm results resulted in zero recorded IUI pregnancies among the couples in the JARG dataset. Conversely, in IVF cases that used ICSI, outcomes did not differ significantly based on the epigenetics result.
For mainstream readers, the takeaway is straightforward: a “normal” Semen Analysis test result is not always the end of the male-fertility conversation.
VIDEO CAPTION: SpermQT introductory video posted on YouTube (https://www.youtube.com/watch?v=EHvFUEBctTs). SpermQT is a new sperm-DNA test offered by Path Fertility.
In fact, additional sperm-focused information may help couples and clinicians set better expectations earlier, especially when deciding whether to keep trying IUI or to move more quickly to more advanced fertility techniques like IVF and/or ICSI.
How Prior Scientific Studies Led to this “Capstone” Result with JARG
This JARG report builds on two peer-reviewed research studies published in 2023, starting with a July 2023 study in Frontiers in Genetics. This data validated the broader scientific approach behind the testing available with SpermQT.
It also found that sperm epigenetic variability was linked with pregnancy and live birth outcomes for IUI, while IVF outcomes did not show a similar separation.
Additionally, a November 2023 study in F&S Science reported that adding epigenetic sperm information could improve how well an analysis of sperm predicted IUI outcomes. This same study reported that IVF outcomes, largely using ICSI, did not show the same differences across epigenetic sperm quality groups.
Together, the 2023 findings laid the scientific groundwork for a greater understanding of sperm viability for infertile couples, while the new JARG paper extended that work into a larger, multi-clinic, real-world setting.
A Perspective from the Clinic
“Many couples hear that the Semen Analysis results are ‘normal’ and assume the male side has been cleared,” said Kaylen Silverberg, MD, Medical Director and fertility specialist with Texas Fertility Center. “However, the type of peer-reviewed research in this JARG study supports a more comprehensive evaluation of male fertility, just as we do with our female patients. SpermQT test results enable couples to make decisions with clearer expectations, especially when considering whether to pursue repeated IUI cycles or proceed to IVF with ICSI.”
A Comment from Path’s Scientific Leadership
“Clinicians and couples alike should think of the data provided by SpermQT results as another piece of the puzzle,” said Kristin Brogaard, Ph.D., Co-Founder and Chief Science Officer of Path Fertility, and a co-author of the JARG study. “Clearly, traditional Semen Analysis testing is still the ‘Standard of Care’ in fertility circles. However, this new test provides a deeper level of detail about sperm function that standard testing does not measure directly, and this additional information can be invaluable to couples struggling with infertility.”
PHOTO CAPTION: Kristin Brogaard, Ph.D., Chief Science Officer and Co-Founder pf Path Fertility. March 2026.
Responsible Interpretation
This new study in JARG reports real-world associations across clinics and treatments, but it does not tell any individual couple what they should do. Patients should discuss testing and treatment options with a qualified clinician who can consider the full medical picture of both partners.
PHOTO CAPTION: SpermQT Test Results Overview Page from Path Fertility. March 2026
About Path Fertility and SpermQT
Path Fertility is focused on raising the “Standard of Care” in male fertility by providing deeper insight into sperm quality and function. As such, SpermQT is a sperm quality test based on epigenetic DNA-markers and is designed to complement Semen Analysis by adding new information related to sperm function.
NOTE: Published Studies Referenced in this Release
SALT LAKE CITY, UT / ACCESS Newswire / March 10, 2026 / Path FertilityTM, an epigenetics-driven fertility technology company, today unveiled the Path Fertility Facts Sheet, a copy of which is embedded below within this news release.
BEGINNING OF THE Path FertilityTM Facts Sheet
Overview
Path FertilityTM helps clinicians and patients uncover male-factor insights that can be missed by “Standard-of-Care” Semen Analysis testing alone, so couples can make more informed fertility treatment decisions sooner.
Path Fertility offers clinically validated testing that evaluates sperm quality and function using epigenetics, providing additional insight into reproductive potential and likely success with common fertility treatment pathways.
Such insights are now validated through three separate, peer-reviewed studies published, respectively, by
The Journal of Assisted Reproduction and Genetics (JARG), 2026;
F&S Science, 2023; and
Frontiers in Genetics, 2023.
Details noted below.
Why this Matters
In fertility care, the male partner is too often “cleared” based on a Semen Analysis result that falls into a reference range. But “Normal” test results do not always mean normal sperm function.
Path Fertility exists to help close that information gap earlier, helping couples reduce avoidable time, cost, and emotional strain.
Flagship Test: SpermQT™
SpermQT™ is a clinically validated epigenetic sperm quality test designed to help predict the likelihood of pregnancy success with certain fertility treatment pathways, especially Intrauterine Insemination (IUI), a procedure where sperm are placed directly into the uterus during ovulation.
VIDEO CAPTION: The “SpermQT vs. Standard Semen Analysis: What’s the Difference?” video from Path Fertility. Video available on YouTube here (https://www.youtube.com/watch?v=nQDm7hngzBk).
What SpermQT Measures
DNA methylation patterns associated with sperm quality and function, i.e., the presence of certain DNA abnormalities in sperm
Functional capability associated with sperm’s ability to find, bind, penetrate, and fertilize
DNA methylation dysregulation across 1,200+ genes
Results are reported as
Excellent,
Normal, and
Abnormal.
Key Clinical Insights
Review of the clinical data shows that SpermQT results are associated with meaningful differences in pregnancy outcomes for couples pursuing IUI.
SpermQT can identify subfertile men who may be missed by Semen Analysis alone; case in point, 4 out of 5 men with an Abnormal SpermQT result receive a “Normal” test result via Semen Analysis testing.
Either In Vitro Fertilization (IVF), where eggs are fertilized in a lab, or with Intracytoplasmic Sperm Injection (ICSI), where a single sperm is injected into an egg, may help overcome certain sperm quality challenges observed in epigenetic testing.
PHOTO CAPTION: SpermQT overview page from Path Fertility. March 2026
Who can Benefit
Patients / Couples
Couples exploring treatment options and wanting better clarity before choosing a path,
Couples with “unexplained infertility,” including cases with “Normal” Semen Analysis results, and
Couples with failed IUI cycles that need better decision support on next steps.
Providers
Fertility clinics and reproductive endocrinology teams seeking better early male-factor insights,
Urology and andrology practices aiming to improve male workup resolution, and
Clinics seeking stronger prediction support for IUI planning and counseling.
When to use SpermQT
SpermQT is designed as a complement to, and not a replacement of, “Standard-of-Care” Semen Analysis. It is often most useful:
Early in the initial male fertility workup, alongside Semen Analysis,
When Semen Analysis is “Normal” but pregnancy has not occurred as expected, and
After failed IUI attempts to inform whether to continue IUI or move to IVF, with or without ICSI.
How it Works
Physician-ordered test (ordering support available through Path Fertility),
Sample collected via at-home kit (or clinic workflow when applicable),
Testing performed; results returned in about 2 weeks, and
Provider reviews results with the patient to inform next-step planning.
END OF THE Path Fertility Fact Sheet AND COMPLETION OF THE NEWS RELEASE BELOW
About Path Fertility and SpermQT
Path Fertility is focused on raising the “Standard of Care” in male fertility by providing deeper insight into sperm quality and function. As such, SpermQT is a sperm quality test based on epigenetic DNA-markers and is designed to complement Semen Analysis by adding new information related to sperm function.
Path Fertility, SpermQT, and the Path Fertility logos are trademarks of Inherent Biosciences, Inc. All other trademarks are property of their respective owners.
Dr. Raza Bokhari, Executive Chairman & CEO will participate in panel discussions and highlight Company’s AI-enabled Drug Development Strategy
PHILADELPHIA, PA / ACCESS Newswire / March 10, 2026 / Medicus Pharma Ltd. (NASDAQ:MDCX) (“Medicus” or the “Company”), a biotech/life sciences company focused on advancing the clinical development programs of novel and potentially disruptive therapeutics assets, is pleased to announce its participation in the Longwood Miami CEO forum being held March 11-13, 2026, at the Ritz-Carlton Key Biscayne.
Dr. Raza Bokhari, Executive Chairman & CEO of Medicus, will serve on a panel titled “Accelerating the Path to Patient Care” and will highlight company’s AI enabled Drug development strategy designed to make clinical trials not only cost efficient but also time efficient.
Other panelists include Lindsay Edwards, CTO & President of Platform, Relation Therapeutics; Julie Gerberding, CEO, Foundation for the NIH and Former Director, CDC; and Gilmore O’Neill, CEO, Editas Medicine. The panel will be moderated by Jon Cohen, Head of Life Sciences Go-To-Market at ServiceNow.
Longwood Miami CEO is an invitation-only event, that brings together Industry leaders, innovators, thought leaders and opinion makers, who will speak on curated fireside chats, roundtables, and discussion panels.
Notable Participants in the conference include Brent Saunders (CEO, Bausch + Lomb), Chris Boshoff (CSO & President, R&D, Pfizer), Rob Califf (former Commissioner, FDA), Sidney Taurel (Chair Emeritus, Lilly), Bill Mezzanotte (Head, R&D, CSL), David Redfern (President, Corporate Development, GSK), Pablo Cagnoni (Head, R&D, Incyte), Julie Gerberding (former Director, CDC), Bill Hait (Chief Scientific Advisor, AACR; former CMO, J&J), Jeremy Levin (Chair & CEO, Ovid Therapeutics), David Meek (former CEO, Ipsen; CEO, Genetix), Frank Nestle (CEO, Deerfield Discovery), Benj Garrett (Managing Director, Stifel), among others.
Medicus Pharma Ltd. (Nasdaq:MDCX) is a precision-guided biotech/life sciences company focused on accelerating the clinical development programs of novel and potentially disruptive therapeutics assets. The Company is actively engaged in multiple countries across three continents.
SkinJect Inc., a wholly owned subsidiary of Medicus Pharma Ltd., is a development-stage life sciences company focused on commercializing a novel, non-invasive treatment for basal cell skin cancer using a patented dissolvable microneedle patch to deliver a chemotherapeutic agent to eradicate tumor cells.
In August 2025, the Company announced its entry into a non-binding memorandum of understanding (MoU) with Helix Nanotechnologies, Inc. (HelixNano), a Boston-based biotech company focused on developing a proprietary advanced mRNA platform, in respect of their shared mutual interest in the development or commercial arrangement contemplated by the MoU. The MoU is non-binding and shall not be construed to obligate either party to proceed with a joint venture or any further development or commercial arrangement, unless and until definitive agreements are executed.
In August 2025, the Company completed the acquisition of Antev, a UK-based late clinical stage biotech company, developing Teverelix, a next-generation gonadotrophin-releasing hormone (GnRH) antagonist, as a first-in-market product for cardiovascular high-risk advanced prostate cancer patients and patients with first acute urinary retention relapse (AURr) episodes due to enlarged prostate.
Unlike GnRH agonists, which can cause an initial surge in testosterone levels, Teverelix directly suppresses sex hormone production without this surge, potentially reducing cardiovascular risks. This mechanism is particularly beneficial for patients with existing cardiovascular conditions. Teverelix is formulated as a microcrystalline suspension, allowing for sustained release and a six-week dosing interval, which may improve patient compliance and outcomes.
In October 2025, the Company announced a strategic collaboration with the Gorlin Syndrome Alliance (GSA) to advance compassionate access to SkinJect for patients suffering from Gorlin Syndrome, also known as nevoid basal cell carcinoma syndrome.
Under the collaboration, Medicus and the GSA will jointly pursue the Expanded Access IND Program with the FDA to allow patients with multiple, recurrent, or inoperable basal cell carcinomas (BCCs) to access SkinJect under physician-supervised treatment protocols. The initiative aims to establish a framework for expanded access while collecting valuable real-world safety and tolerability data to inform future regulatory filings. It will also more tightly integrate patient community-led insights and data into the design, monitoring, and long-term development of SkinJect in this rare disease population.
In November 2025, the Company received full regulatory and ethical approvals in the United Kingdom to expand its ongoing Phase 2 clinical study (SKNJCT-003) evaluating D-MNA to non-invasively treat BCC of the skin. The approvals were issued by the Medicines and Healthcare products Regulatory Agency (MHRA), the Health Research Authority (HRA) and the Wales Research Ethics Committee (WREC). The MHRA approval followed a comprehensive scientific review of the Investigational Medicinal Product Dossier (IMPD) and protocol. The WREC issued a favorable ethical opinion, and the HRA granted study-wide governance approval, confirming compliance with UK Good Clinical Practice and National Health Service capacity and capability standards.
In December 2025, the Company announced that it has successfully completed enrolment of 90 patients in the United States for Phase 2 clinical study (SKNJCT-003) evaluating D-MNA to non-invasively treat BCC of the skin. The Company expects to secure an end-of-Phase 2 meeting with the FDA in the first half of 2026.
In December 2025, Medicus announced a non-binding letter of intent with Reliant AI Inc., a decision-intelligence company specializing in generative AI for the life sciences industry, to collaborate on the development of an AI-driven clinical data analytics platform. Subject to execution of definitive agreements, the platform is expected to support capital-efficient clinical development through data-driven dynamic clinical-site selection, patient stratification and enrollment forecasting. The initial phase of the collaboration is expected to support an upcoming Teverelix clinical study planned for 2026, with potential expansion into later-stage development programs in collaboration with a strategic partner.
In February 2026, the Company announced that it has received “study may proceed” clearance from the U.S. Food and Drug Administration (FDA) to initiate its Phase 2b dose-optimization study of Teverelix®, an investigational next generation long-acting GnRH antagonist, in men with advanced prostate cancer (APC).
Cautionary Notice on Forward-Looking Statements
Certain information in this news release constitutes “forward-looking information” under applicable securities laws. “Forward-looking information” is defined as disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action and includes, without limitation, statements regarding the Company’s leadership and prospects, the collaboration with GSA including the potential benefits thereof for GSA, those suffering with Gorlin Syndrome and Medicus (including as it relates to the development of SkinJect™), ability to be approved for the Expanded Access IND Program to enable those suffering with Gorlin Syndrome to access SkinJect™ under physician-supervised treatment protocols, the development of Teverelix and expectations concerning, and future outcomes relating to, the development, advancement and commercialization of Teverelix for AURr, high CV risk prostate cancer, women’s health indications like endometriosis, and the potential market opportunities related thereto, the MOU, including the potential signing of definitive agreements between Medicus and HelixNano and the development of thermostable infectious diseases vaccines by combining HelixNano’s proprietary mRNA vaccine platform with Medicus’s proprietary microneedle array (MNA) delivery platform, the Company’s aim to fast-track the clinical development program and convert the SKNJCT-003 exploratory clinical trial into a pivotal clinical trial, and approval from the FDA and the timing thereof, including with respect to the Company’s submission for approval in the FDA Commissioner’s National Priority Voucher program, plans and expectations concerning, and future outcomes relating to, the development, advancement and commercialization of SkinJect through SKNJCT-003 and SKNJCT-004, and the potential market opportunities related thereto, the Company’s expectations regarding reported efficacy findings and whether there will be material changes to its reported SKNJCT-003 topline results and to secure an EOP2 meeting with the FDA in the first half of 2026, entry into definitive documents with Reliant and the expected terms thereof, engaging in proposed Medicus-sponsored studies currently contemplated in the Reliant non-binding letter of intent and the expected benefits thereof, the expansion of SKNJCT-003 into the United Kingdom and the potential benefits therefrom, the advancement of the SKNJCT-004 study and the potential results of and benefits of such study. Forward-looking statements are often but not always, identified by the use of such terms as “may”, “on track”, “aim”, “might”, “will”, “will likely result”, “could,” “designed,” “would”, “should”, “estimate”, “plan”, “project”, “forecast”, “intend”, “expect”, “anticipate”, “believe”, “seek”, “continue”, “target”, “potential” or the negative and/or inverse of such terms or other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including those risk factors described in the Company’s annual report on form 10-K for the year ended December 31, 2024 (the “Annual Report”), and in the Company’s other public filings on EDGAR and SEDAR+, which may impact, among other things, the trading price and liquidity of the Company’s common shares. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof and thus are subject to change thereafter. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
FY25 EPS of $0.08; FY25 Adjusted EPS growth of 5% to $0.83
YoY Increase in Cash Flow from Operations of $148 million; Free Cash Flow more than doubled to $187 million
FY25 YoY Revenue Growth of 2%; FY25 YoY Net Revenue Growth of 6%
FY25 YoY Net Revenue Growth excluding Advocacy of 9%, Digital Transformation Net Revenue Growth of 13%, Marketing Services Net Revenue Growth of 6%
The Marketing Cloud delivered YoY Net Revenue Growth of 230%
FY25 Net Income Attributable to Stagwell Inc. Common Shareholders of $29 million; FY25 Adjusted EBITDA of $422 million; FY25 Adjusted EBITDA ex. Advocacy YoY Growth of 16% to $377 million
Net New Business of $106 million in Q4; LTM Net New Business of $476 million
Company Announces $350 Million Increase in Stock Repurchase Program; $400 Million Now Available Under the Program
Guidance for 2026 of Total Net Revenue Growth of 8% to 12%; Adjusted EBITDA of $475 million to $525 million; Free Cash Flow Conversion of 50% to 60%
NEW YORK CITY, NY / ACCESS Newswire / March 10, 2026 / (NASDAQ:STGW) – Stagwell Inc. (“Stagwell”) today announced financial results for the year ended December 31, 2025.
FOURTH QUARTER AND FULL YEAR RESULTS:
Q4 Revenue of $807 million, an increase of 2% versus the prior year period; FY25 Revenue of $2,909 million, an increase of 2% versus the prior year period;
Q4 Revenue ex. Advocacy of $742 million, an increase of 12% versus the prior year period; FY25 Revenue ex. Advocacy of $2,689 million, an increase of 9% versus the prior year period;
Q4 Net Revenue of $651 million, an increase of 3% versus the prior year period; FY25 Net Revenue of $2,428 million, an increase of 6% versus the prior year period;
Q4 Net Revenue ex. Advocacy of $609 million, an increase of 8% versus the prior year period; FY25 Net Revenue ex. Advocacy of $2,282 million, an increase of 9% versus the prior year period;
Q4 Net Income attributable to Stagwell Inc. Common Shareholders of $13 million versus $3 million in the prior year period; FY25 Net Income attributable to Stagwell Inc. Common Shareholders of $29 million versus $2 million in the prior year period;
Q4 Adjusted EBITDA of $129 million, an increase of 3% versus the prior year period; FY25 Adjusted EBITDA of $422 million, an increase of 1% versus the prior year period;
Q4 Adjusted EBITDA Margin of 20% on net revenue; FY25 Adjusted EBITDA Margin of 17% on net revenue;
Q4 Earnings Per Share Attributable to Stagwell Inc. Common Shareholders of $0.05 versus $0.03 in the prior year period; FY25 Earnings Per Share Attributable to Stagwell Inc. Common Shareholders of $0.08 versus $0.02 in the prior year period;
Q4 Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.30 versus $0.25 in the prior year period; FY25 Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.83 versus $0.79 in the prior year period;
YTD Net Cash provided by Operating Activities of $291 million versus $143 million in the prior year period;
Net new business of $106 million in the fourth quarter, last twelve-month net new business of $476 million
See “Non-GAAP Financial Measures” below for explanations and reconciliations of the Company’s non-GAAP financial measures.
“In 2025, Stagwell increased its strategic pivot toward AI applications and services, building a powerful foundation for 2026. With accelerating growth ex-advocacy, record net new business, expanding margins and doubled free cash flow, our FY25 results prove our strategy is working,” shared Mark Penn, Stagwell’s Chairman and CEO. “We see great opportunity in 2026 to capitalize on an industry distracted by restructurings and mergers, and bolster our position as a winner in the age of AI.”
Ryan Greene, Chief Financial Officer, commented: “2025 marked an inflection year for Stagwell, with clear momentum in the underlying business and improving efficiency contributing to strong year-over-year net revenue, adjusted EBITDA and adjusted EPS growth. Proactive cash management meant we more than doubled our free cash flow in 2025. We expect another strong year in 2026, and will be aggressive in our capital allocation to drive shareholder value.”
Financial Outlook
2026 financial guidance is as follows:
Total Net Revenue growth of 8% to 12%
Adjusted EBITDA of $475 million to $525 million
Free Cash Flow Conversion of 50% to 60%
Adjusted EPS of $0.98 – $1.12
Guidance includes anticipated impact from acquisitions or dispositions.
* The Company has excluded a quantitative reconciliation with respect to the Company’s 2026 guidance under the “unreasonable efforts” exception in Item 10(e)(1)(i)(B) of Regulation S-K. See “Non-GAAP Financial Measures” below for additional information.
Stock Repurchase Program
On March 4, 2026, the Board of Directors authorized an extension and a $350.0 million increase in the size of our previously approved stock repurchase program (the “Repurchase Program”). Under the Repurchase Program, as amended, we may repurchase up to an aggregate of $725.0 million of shares of our outstanding Class A common stock, par value $0.001 per share (“Class A Common Stock”), with any previous purchases under the Repurchase Program continuing to count against that limit. With the increase, we have a total of approximately $400.0 million available for repurchases. The Repurchase Program will expire on March 4, 2029.
Video Webcast
Management will host a video webcast on Tuesday, March 10, 2026, at 8:30 a.m. (ET) to discuss results for Stagwell Inc. for the year ended December 31, 2025. The video webcast will be accessible at https://edge.media-server.com/mmc/p/3x58p928/. An investor presentation has been posted on our website at www.stagwellglobal.com and may be referred to during the webcast.
A recording of the webcast will be accessible one hour after the webcast and available for ninety days at www.stagwellglobal.com.
Stagwell Inc.
Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our specialists in 45+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.
In addition to its reported results, Stagwell Inc. has included in this earnings release certain financial results that the Securities and Exchange Commission (SEC) defines as “non-GAAP Financial Measures.” Management believes that such non-GAAP financial measures, when read in conjunction with the Company’s reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company’s results. Such non-GAAP financial measures include the following:
(1) Organic Net Revenue: “Organic net revenue growth” and “Organic net revenue decline” reflects the year-over-year change in the Company’s reported net revenue attributable to the Company’s management of the entities it owns. We calculate organic net revenue growth (decline) by subtracting the net impact of acquisitions (divestitures) and the impact of foreign currency exchange fluctuations from the aggregate year-over-year increase or decrease in the Company’s reported net revenue. The net impact of acquisitions (divestitures) reflects the year-over-year change in the Company’s reported net revenue attributable to the impact of all individual entities that were acquired or divested in the current and prior year. We calculate impact of an acquisition as follows: (a) for an entity acquired during the current year, we present the entity’s current period reported revenue as the impact of the acquisition in the current year; and (b) for an entity acquired in the prior year, we present an amount equal to the entity’s current year net revenue for the same period during which we didn’t own the entity in the prior year as the impact of the acquisition in the current year. We calculate impact of a divestiture as follows: (a) for a divestiture in the current year, we present the entity’s prior year net revenue for the same period during which we no longer owned it in the current year as impact of the divestiture in the current year; and (b) for a divestiture in the prior year, we present the entity’s prior year net revenue for the period during which we owned it in the prior year as impact of the divestiture in the current year. We calculate the impact of any acquisition or divestiture without adjusting for foreign currency exchange fluctuations. The impact of foreign currency exchange fluctuations reflects the year-over-year change in the Company’s reported net revenue attributable to changes in foreign currency exchange rates. We calculate the impact of foreign currency exchange fluctuations for the portion of the reporting period in which we recognized revenue from a foreign entity in both the current year and the prior year. The impact is calculated as the difference between (1) reported prior period net revenue (converted to U.S. dollars at historical foreign currency exchange rates) and (2) prior period net revenue converted to U.S. dollars at current period foreign exchange rates.
(2) Net New Business: Estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period.
(3) Adjusted EBITDA: defined as Net income (loss) attributable to Stagwell Inc. common shareholders excluding non-operating income or expense to achieve operating income (loss), plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, impairment and other losses, and other items. Other items primarily includes restructuring, certain system implementation, working capital administrative fees and acquisition-related expenses. Adjusted EBITDA for our reportable segments is reconciled to Operating Income (Loss), as Net Income (Loss) is not a relevant reportable segment financial metric.
(4) Adjusted Diluted EPS” is defined as (i) Net income (loss) attributable to Stagwell Inc. common shareholders, plus net income (loss) attributable to Class C shareholders, excluding the impact of amortization expense, impairment and other losses, stock-based compensation, deferred acquisition consideration adjustments, discrete tax items, and other items (as defined above), based on total consolidated amounts, then allocated to Stagwell Inc. common shareholders and Class C shareholders, based on their respective income allocation percentage using a normalized effective income tax rate divided by (ii) the diluted weighted average shares outstanding. The diluted weighted average shares outstanding is calculated as (a) the diluted weighted average number of common shares outstanding plus (b) the shares of Class C Common Stock as if converted to shares of Class A Common Stock if not included because they were anti-dilutive.
(5) Free Cash Flow: defined as Net cash provided from operations less normalized capital expenditures and capitalized software. Free Cash Flow Conversion is the percentage of adjusted EBITDA.
Included in this earnings release are tables reconciling reported Stagwell Inc. results to arrive at certain of these non-GAAP financial measures.
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company’s representatives may also make forward-looking statements orally or in writing from time to time. Statements in this document that are not historical facts, including, statements about the Company’s beliefs and expectations, future financial performance, growth, and future prospects, the Company’s strategy, business and economic trends and growth, technological leadership and differentiation, potential and completed acquisitions, anticipated and actual operating efficiencies and synergies and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. Forward-looking statements, which are generally denoted by words such as “ability,” “aim,” “anticipate,” “assume,” “believe,” “better,” “build,” “consider,” “continue,” “could,” “develop,” “drive,” “enhance,” “estimate,” “expect,” “focus,” “forecast,” “future,” “grow,” “guidance,” “improve,” “intend,” “likely,” “maintain,” “may,” “ongoing,”, “outlook,” “plan,” “position,” “possible,” “potential,” “probable,” “project,” “seek,” “should,” “target,” “will,” “would” or the negative of such terms or other variations thereof and terms of similar substance used in connection with any discussion of current plans, estimates and projections are subject to change based on a number of factors, including those outlined in this section.
Forward-looking statements in this document are based on certain key expectations and assumptions made by the Company. Although the management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. The material assumptions upon which such forward-looking statements are based include, among others, assumptions with respect to general business, economic and market conditions, the competitive environment, anticipated and unanticipated tax consequences and anticipated and unanticipated costs. These forward-looking statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined in this section. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company’s control. Therefore, you should not place undue reliance on such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events, if any.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Such risk factors include, but are not limited to, the following:
risks associated with international, national and regional unfavorable economic conditions, including the effect of changing tariff and other trade policies, inflation and other macroeconomic factors that could affect the Company or its clients;
demand for the Company’s services, which may precipitate or exacerbate other risks and uncertainties;
inflation and actions taken by central banks to counter inflation;
the Company’s ability to attract new clients and retain existing clients;
the impact of a reduction in client spending and changes in client advertising, marketing and corporate communications requirements;
financial failure of the Company’s clients;
the Company’s ability to retain and attract key employees;
the Company’s ability to compete in the markets in which it operates;
the Company’s ability to achieve its cost saving initiatives;
the Company’s implementation of strategic initiatives;
the Company’s ability to remain in compliance with its debt agreements and the Company’s ability to finance its contingent payment obligations when due and payable, including but not limited to those relating to redeemable noncontrolling interests, deferred acquisition consideration and profit interests;
the Company’s ability to manage its growth effectively;
the Company’s ability to identify and complete acquisitions or other strategic transactions that complement and expand the Company’s business capabilities and successfully integrate newly acquired businesses into the Company’s operations, retain key employees, and realize cost savings, synergies and other related anticipated benefits within the expected time period;
the Company’s ability to identify and complete divestitures and to achieve the anticipated benefits therefrom;
the Company’s ability to develop products incorporating new technologies, including augmented reality, artificial intelligence, and virtual reality, and realize benefits from such products;
the Company’s use of artificial intelligence, including generative artificial intelligence;
adverse tax consequences for the Company, its operations and its stockholders, that may differ from the expectations of the Company, including that recent or future changes in tax laws, potential changes to corporate tax rates in the United States and disagreements with tax authorities on the Company’s determinations that may result in increased tax costs;
adverse tax consequences in connection with the business combination that formed the Company in August 2021, including the incurrence of material Canadian federal income tax (including material “emigration tax”);
the Company’s ability to maintain an effective system of internal control over financial reporting, including the risk that the Company’s internal controls will fail to detect misstatements in its financial statements;
the Company’s ability to accurately forecast its future financial performance and provide accurate guidance;
the Company’s ability to protect client data from security incidents or cyberattacks;
economic disruptions resulting from war and other economic and geopolitical tensions (such as the ongoing military conflicts in Iran and the Middle East, and between Russia and Ukraine), terrorist activities, natural disasters, public health events, and tariff and trade policies;
stock price volatility; and
foreign currency fluctuations.
Investors should carefully consider these risks factors, the additional risk factors outlined under the caption “Risk Factors” in this Form 10-K, and in the Company’s other filings with the Securities and Exchange Commission (the”SEC”) which are accessible on the SEC’s website at www.sec.gov.
SCHEDULE 1 STAGWELL INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands, except per share amounts)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Revenue
$
807,444
$
788,708
$
2,909,000
$
2,841,216
Operating Expenses
Cost of services
503,718
502,522
1,845,958
1,842,978
Office and general expenses
203,481
203,887
732,326
711,803
Depreciation and amortization
43,614
38,771
171,249
151,652
Impairment and other losses
–
–
466
1,715
750,813
745,180
2,749,999
2,708,148
Operating Income
56,631
43,528
159,001
133,068
Other income (expenses):
Interest expense, net
(24,431
)
(24,038
)
(96,438
)
(92,317
)
Foreign exchange, net
(1,156
)
645
(1,640
)
(1,656
)
Gain (loss) on sale of business
(2,245
)
–
(2,245
)
–
Bargain purchase gain
9,937
–
9,937
–
Other, net
2,314
(547
)
171
(1,372
)
(15,581
)
(23,940
)
(90,215
)
(95,345
)
Income before income taxes and equity in earnings of non-consolidated affiliates
41,050
19,588
68,786
37,723
Income tax expense
24,321
3,741
38,271
13,182
Income before equity in earnings of non-consolidated affiliates
16,729
15,847
30,515
24,541
Equity in income of non-consolidated affiliates
93
–
111
503
Net income
16,822
15,847
30,626
25,044
Net income attributable to noncontrolling and redeemable noncontrolling interests
(4,162
)
(12,612
)
(1,525
)
(22,785
)
Net income attributable to Stagwell Inc. common shareholders
$
12,660
$
3,235
$
29,101
$
2,259
Earnings Per Common Share:
Basic
$
0.05
$
0.03
$
0.13
$
0.02
Diluted
$
0.05
$
0.03
$
0.08
$
0.02
Weighted Average Number of Common Shares Outstanding:
Basic
251,650
109,266
220,608
110,890
Diluted
258,997
115,147
264,523
115,752
SCHEDULE 2 STAGWELL INC. UNAUDITED COMPONENTS OF NET REVENUE CHANGE (amounts in thousands)
Net Revenue – Components of Change
Change
Three Months Ended December 31, 2024
Foreign Currency
Net Acquisitions (Divestitures)
Organic (1)
Total Change
Three Months Ended December 31, 2025
Organic
Total
Marketing Services
$
240,262
$
2,017
$
1,315
$
1,215
$
4,547
$
244,809
0.5
%
1.9
%
Digital Transformation
84,570
(130
)
5,419
2,335
7,624
92,194
2.8
%
9.0
%
Media & Commerce
161,720
1,745
3,154
11,546
16,445
178,165
7.1
%
10.2
%
Communications
131,736
385
–
(23,796
)
(23,411
)
108,325
(18.1
)%
(17.8
)%
The Marketing Cloud
13,122
485
8,706
5,404
14,595
27,717
41.2
%
111.2
%
Corporate, eliminations and other
(1,787
)
–
–
1,410
1,410
(377
)
(78.9
)%
(78.9
)%
$
629,623
$
4,502
$
18,594
$
(1,886
)
$
21,210
$
650,833
(0.3
)%
3.4
%
(1) See Non-GAAP Financial Measures section above for the definition of Organic Net Revenue.
SCHEDULE 3 STAGWELL INC. UNAUDITED COMPONENTS OF NET REVENUE CHANGE (amounts in thousands)
Net Revenue – Components of Change
Change
Year Ended December 31, 2024
Foreign Currency
Net Acquisitions (Divestitures)
Organic (1)
Total Change
Year Ended December 31, 2025
Organic
Total
Marketing Services
$
905,117
$
3,491
$
9,788
$
41,280
$
54,559
$
959,676
4.6
%
6.0
%
Digital Transformation
324,183
(405
)
13,615
29,779
42,989
367,172
9.2
%
13.3
%
Media & Commerce
601,503
3,396
5,829
(708
)
8,517
610,020
(0.1
)%
1.4
%
Communications
435,626
547
29,002
(71,744
)
(42,195
)
393,431
(16.5
)%
(9.7
)%
The Marketing Cloud
32,265
941
62,229
11,051
74,221
106,486
34.3
%
230.0
%
Corporate, eliminations and other
(2,032
)
–
–
(7,082
)
(7,082
)
(9,114
)
NM
NM
$
2,296,662
$
7,970
$
120,463
$
2,576
$
131,009
$
2,427,671
0.1
%
5.7
%
(1) See Non-GAAP Financial Measures section above for the definition of Organic Net Revenue.
SCHEDULE 4 STAGWELL INC. UNAUDITED SEGMENT OPERATING RESULTS (amounts in thousands)
For the Three Months Ended December 31, 2025
Marketing Services
Digital Transformation
Media & Commerce
Communications
The Marketing Cloud
Corporate, Elimination and Other
Total
Net revenue
$
244,809
$
92,194
$
178,165
$
108,325
$
27,717
$
(377
)
$
650,833
Billable costs
50,555
9,117
32,862
64,037
35
5
156,611
Revenue
295,364
101,311
211,027
172,362
27,752
(372
)
807,444
Billable costs
50,555
9,117
32,862
64,037
35
5
156,611
Staff costs
144,258
63,081
93,713
57,083
14,964
17,055
390,154
Administrative costs
20,304
7,668
25,988
13,799
4,243
12,238
84,240
Unbillable and other costs, net
18,103
154
21,000
2,390
5,511
(1
)
47,157
Adjusted EBITDA(1)
62,144
21,291
37,464
35,053
2,999
(29,669
)
129,282
Stock-based compensation
4,647
1,041
1,127
(435
)
87
3,486
9,953
Depreciation and amortization
12,154
5,924
8,637
6,362
6,078
4,459
43,614
Deferred acquisition consideration
–
4,542
68
(2,143
)
(23
)
–
2,444
Impairment and other losses
–
–
–
–
–
–
–
Other items, net(1)
5,996
366
7,437
1,362
1,042
437
16,640
Operating income (loss)
$
39,347
$
9,418
$
20,195
$
29,907
$
(4,185
)
$
(38,051
)
$
56,631
(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net.
SCHEDULE 5 STAGWELL INC. UNAUDITED SEGMENT OPERATING RESULTS (amounts in thousands)
For the Year Ended December 31, 2025
Marketing Services
Digital Transformation
Media & Commerce
Communications
The Marketing Cloud
Corporate, Elimination and Other
Total
Net revenue
$
959,676
$
367,172
$
610,020
$
393,431
$
106,486
$
(9,114
)
$
2,427,671
Billable costs
175,145
26,327
80,655
199,146
51
5
481,329
Revenue
1,134,821
393,499
690,675
592,577
106,537
(9,109
)
2,909,000
Billable costs
175,145
26,327
80,655
199,146
51
5
481,329
Staff costs
565,484
247,967
363,031
229,356
68,647
52,411
1,526,896
Administrative costs
105,801
27,267
93,003
50,841
17,613
7,938
302,463
Unbillable and other costs, net
78,333
1,305
64,833
9,300
22,689
(1
)
176,459
Adjusted EBITDA(1)
210,058
90,633
89,153
103,934
(2,463
)
(69,462
)
421,853
Stock-based compensation
19,716
4,122
4,191
6,325
628
19,113
54,095
Depreciation and amortization
52,295
23,174
30,263
25,711
23,514
16,292
171,249
Deferred acquisition consideration
(4,784
)
12,271
3,010
(7,022
)
(10,942
)
–
(7,467
)
Impairment and other losses
–
–
–
222
244
–
466
Other items, net(1)
10,228
1,859
17,549
5,048
3,651
6,174
44,509
Operating income (loss)
$
132,603
$
49,207
$
34,140
$
73,650
$
(19,558
)
$
(111,041
)
$
159,001
(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net.
SCHEDULE 6 STAGWELL INC. UNAUDITED SEGMENT OPERATING RESULTS (amounts in thousands)
For the Three Months Ended December 31, 2024
Marketing Services
Digital Transformation
Media & Commerce
Communications
The Marketing Cloud
Corporate, Elimination and Other
Total
Net revenue
$
240,262
$
84,570
$
161,720
$
131,736
$
13,122
$
(1,787
)
$
629,623
Billable costs
48,294
2,110
11,719
97,372
–
(410
)
159,085
Revenue
288,556
86,680
173,439
229,108
13,122
(2,197
)
788,708
Billable costs
48,294
2,110
11,719
97,372
–
(410
)
159,085
Staff costs
146,876
60,557
91,108
69,381
10,614
11,685
390,221
Administrative costs
25,300
6,102
22,190
13,646
2,725
3,312
73,275
Unbillable and other costs, net
15,458
605
18,944
2,882
2,860
–
40,749
Adjusted EBITDA(1)
52,628
17,306
29,478
45,827
(3,077
)
(16,784
)
125,378
Stock-based compensation
2,093
(1,480
)
1,866
2,254
157
8,345
13,235
Depreciation and amortization
12,680
5,585
7,301
6,556
3,193
3,456
38,771
Deferred acquisition consideration
3,379
4,221
(1,292
)
9,673
(936
)
–
15,045
Other items, net(1)
8,823
201
1,863
1,403
88
2,421
14,799
Operating income (loss)
$
25,653
$
8,779
$
19,740
$
25,941
$
(5,579
)
$
(31,006
)
$
43,528
(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items.
SCHEDULE 7 STAGWELL INC. UNAUDITED SEGMENT OPERATING RESULTS (amounts in thousands)
For the Year Ended December 31, 2024
Marketing Services
Digital Transformation
Media & Commerce
Communications
The Marketing Cloud
Corporate, Elimination and Other
Total
Net revenue
$
905,117
$
324,183
$
601,503
$
435,626
$
32,265
$
(2,032
)
$
2,296,662
Billable costs
172,490
11,473
93,899
267,439
–
(747
)
544,554
Revenue
1,077,607
335,656
695,402
703,065
32,265
(2,779
)
2,841,216
Billable costs
172,490
11,473
93,899
267,439
–
(747
)
544,554
Staff costs
557,776
227,522
356,684
232,096
28,686
46,942
1,449,706
Administrative costs
101,145
21,809
83,572
47,335
9,777
11,408
275,046
Unbillable and other costs, net
70,924
1,393
65,188
10,840
6,117
–
154,462
Adjusted EBITDA(1)
175,272
73,459
96,059
145,355
(12,315
)
(60,382
)
417,448
Stock-based compensation
17,095
6,622
6,265
7,721
805
13,653
52,161
Depreciation and amortization
53,106
22,398
31,450
20,100
12,502
12,096
151,652
Deferred acquisition consideration
5,379
7,911
(7,745
)
18,770
(1,320
)
–
22,995
Impairment and other losses
1,500
–
–
–
–
215
1,715
Other items, net(1)
20,251
3,090
17,103
4,860
629
9,924
55,857
Operating income (loss)
$
77,941
$
33,438
$
48,986
$
93,904
$
(24,931
)
$
(96,270
)
$
133,068
(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net.
SCHEDULE 8 STAGWELL INC. UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE) (amounts in thousands, except per share amounts)
For the Three Months Ended December 31, 2025
GAAP
Adjustments
Non-GAAP
Net income attributable to Stagwell Inc. common shareholders and adjusted net income
$
12,660
$
64,037
$
76,697
Diluted – Weighted average number of shares outstanding
258,997
–
258,997
Diluted EPS and Adjusted Diluted EPS (1)
$
0.05
$
0.30
Adjustments to Net income
Amortization
$
38,333
Stock-based compensation
9,953
Deferred acquisition consideration
2,444
Other items, net
16,639
67,369
Adjusted tax expense
(3,332
)
$
64,037
(1) See Non-GAAP Financial Measures section above for the definition of Adjusted Diluted EPS.
SCHEDULE 9 STAGWELL INC. UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE) (amounts in thousands, except per share amounts)
For the Year Ended December 31, 2025
GAAP
Adjustments
Non-GAAP
Net income attributable to Stagwell Inc. common shareholders
$
29,101
$
198,129
$
227,230
Net loss attributable to Class C shareholders
(6,637
)
–
(6,637
)
Net income attributable to Stagwell Inc. and Class C shareholders and adjusted net income
$
22,464
$
198,129
$
220,593
Diluted – Weighted average number of common shares outstanding
225,468
–
225,468
Weighted average number of shares of Class C Common Stock outstanding
39,055
–
39,055
Diluted – Weighted average number of shares outstanding
264,523
–
264,523
Diluted EPS and Adjusted Diluted EPS (1)
$
0.08
$
0.83
Adjustments to Net Income
Amortization
$
145,506
Impairment and other losses
466
Stock-based compensation
54,095
Deferred acquisition consideration
(7,467
)
Other items, net
46,792
239,392
Adjusted tax expense
(41,263
)
$
198,129
(1) See Non-GAAP Financial Measures section above for the definition of Adjusted Diluted EPS.
SCHEDULE 10 STAGWELL INC. UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE) (amounts in thousands, except per share amounts)
For the Three Months Ended December 31, 2024
GAAP
Adjustments
Non-GAAP
Net income attributable to Stagwell Inc. common shareholders
$
3,235
$
22,778
$
26,013
Net income attributable to Class C shareholders
–
41,549
41,549
Net income attributable to Stagwell Inc. and Class C and adjusted net income
$
3,235
$
64,327
$
67,562
Diluted – Weighted average number of common shares outstanding
115,147
–
115,147
Weighted average number of shares of Class C Common Stock outstanding
–
151,649
151,649
Diluted – Weighted average number of shares outstanding
115,147
151,649
266,796
Diluted EPS and Adjusted Diluted EPS (1)
$
0.03
$
0.25
Adjustments to Net income
Amortization
$
30,572
Stock-based compensation
13,235
Deferred acquisition consideration
15,045
Other items, net
14,799
73,651
Adjusted tax expense
(20,618
)
53,033
Net income attributable to Class C shareholders
11,294
$
64,327
Allocation of adjustments to Net income
Net income attributable to Stagwell Inc. common shareholders
$
22,778
Net income attributable to Class C shareholders – add-backs
30,255
Net income attributable to Class C shareholders
11,294
41,549
$
64,327
(1) See Non-GAAP Financial Measures section above for the definition of Adjusted Diluted EPS.
SCHEDULE 11 STAGWELL INC. UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE) (amounts in thousands, except per share amounts)
For the Year Ended December 31, 2024
GAAP
Adjustments
Non-GAAP
Net income attributable to Stagwell Inc. common shareholders
$
2,259
$
82,506
$
84,765
Net income attributable to Class C shareholders
–
126,735
126,735
Net income attributable to Stagwell Inc. and Class C shareholders and adjusted net income
$
2,259
$
209,241
$
211,500
Diluted – Weighted average number of common shares outstanding
115,752
–
115,752
Weighted average number of shares of Class C Common Stock outstanding
–
151,649
151,649
Diluted – Weighted average number of shares outstanding
115,752
151,649
267,401
Diluted EPS and Adjusted Diluted EPS (1)
$
0.02
$
0.79
Adjustments to Net income
Amortization
$
122,442
Impairment and other losses
1,715
Stock-based compensation
52,161
Deferred acquisition consideration
22,995
Other items, net
55,857
255,170
Adjusted tax expense
(63,073
)
192,097
Net income attributable to Class C shareholders
17,144
$
209,241
Allocation of adjustments to Net income
Net income attributable to Stagwell Inc. common shareholders
$
82,506
Net income attributable to Class C shareholders – add-backs
109,591
Net income attributable to Class C shareholders
17,144
126,735
$
209,241
(1) See Non-GAAP Financial Measures section above for the definition of Adjusted Diluted EPS.
SCHEDULE 12 STAGWELL INC. UNAUDITED CONSOLIDATED BALANCE SHEETS (amounts in thousands)
December 31, 2025
December 31, 2024
ASSETS
Current Assets
Cash and cash equivalents
$
104,537
$
131,339
Accounts receivable, net
735,752
716,415
Expenditures billable to clients
164,694
173,194
Other current assets
157,309
114,200
Total Current Assets
1,162,292
1,135,148
Fixed assets, net
73,081
72,706
Right-of-use assets – operating leases
213,576
219,400
Goodwill
1,595,238
1,554,146
Other intangible assets, net
834,248
836,783
Deferred tax assets
281,057
46,926
Other assets
55,055
43,112
Total Assets
$
4,214,547
$
3,908,221
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS (“RNCI”), AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable
$
548,320
$
449,347
Accrued media
239,490
245,883
Accruals and other liabilities
291,554
265,356
Advance billings
329,815
294,609
Current portion of lease liabilities – operating leases
55,386
60,195
Current portion of deferred acquisition consideration
15,446
51,906
Total Current Liabilities
1,480,011
1,367,296
Long-term debt
1,326,013
1,353,624
Long-term portion of deferred acquisition consideration
24,598
50,209
Long-term lease liabilities – operating leases
224,397
245,397
Deferred tax liabilities
54,726
47,239
Long-term tax receivable agreement liability
252,390
25,493
Other liabilities
51,077
33,646
Total Liabilities
3,413,212
3,122,904
Redeemable Noncontrolling Interests
24,968
8,412
Commitments, Contingencies and Guarantees
Shareholders’ Equity
Common shares – Class A
252
115
Common shares – Class C
–
2
Paid-in capital
744,463
343,647
Retained earnings
32,930
11,740
Accumulated other comprehensive loss
(19,252
)
(23,773
)
Stagwell Inc. Shareholders’ Equity
758,393
331,731
Noncontrolling interests
17,974
445,174
Total Shareholders’ Equity
776,367
776,905
Total Liabilities, Redeemable Noncontrolling Interests and Shareholders’ Equity
$
4,214,547
$
3,908,221
SCHEDULE 13 STAGWELL INC. UNAUDITED SUMMARY CASH FLOW DATA (amounts in thousands)
Years Ended December 31,
2025
2024
Cash flows from operating activities:
Net income
$
30,626
$
25,044
Adjustments to reconcile net income to cash provided by operating activities:
Stock-based compensation
54,095
52,161
Depreciation and amortization
171,249
151,652
Amortization of right-of-use lease assets and lease liability interest
67,495
75,117
Impairment and other (gains) losses
(3,116
)
1,715
Deferred income taxes
10,439
(10,686
)
Adjustment to deferred acquisition consideration
(7,467
)
23,005
Loss (gain) on sale of business
2,245
–
Bargain purchase gain
(9,937
)
–
Other, net
7,519
7,622
Changes in working capital:
Accounts receivable
28,787
8,465
Expenditures billable to clients
12,012
(54,350
)
Other current assets
(51,534
)
(6,200
)
Accounts payable
73,573
24,438
Accrued expenses and other liabilities
(42,244
)
(28,658
)
Advance billings
25,574
(22,651
)
Current portion of lease liabilities – operating leases
(76,465
)
(83,905
)
Deferred acquisition related payments
(1,823
)
(19,910
)
Net cash provided by operating activities
291,028
142,859
Cash flows from investing activities:
Capitalized software
(67,489
)
(35,094
)
Capital expenditures
(43,741
)
(18,912
)
Acquisitions, net of cash acquired
(6,179
)
(103,254
)
Proceeds from sale of business, net
10,850
–
Other
(7,119
)
(5,212
)
Net cash used in investing activities
(113,678
)
(162,472
)
Cash flows from financing activities:
Repayment of borrowings under revolving credit facility
(2,026,000
)
(1,755,000
)
Proceeds from borrowings under revolving credit facility
1,999,326
1,960,000
Shares repurchased and cancelled
(134,261
)
(108,249
)
Distributions to noncontrolling interests
(9,662
)
(26,723
)
Payment of deferred consideration
(33,343
)
(29,774
)
Purchase of noncontrolling interest
–
(3,316
)
Debt financing and other costs
(6,077
)
–
Net cash (used in) provided by financing activities
(210,017
)
36,938
Effect of exchange rate changes on cash and cash equivalents
5,865
(5,723
)
Net increase (decrease) in cash and cash equivalents
ORLANDO, FLORIDA / ACCESS Newswire / March 9, 2026 / Unusual Machines (NYSE American:UMAC) (“Unusual Machines” or the “Company”), a leading provider of NDAA-compliant drone components, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2025 and is anticipating filing its Form 10-K with the U.S. Securities and Exchange Commission for the fiscal year ended December 31, 2025 in the coming days. The Company provided the following letter to its shareholders from CEO Allan Evans.
Dear Shareholders,
This shareholder letter follows the completion of our fourth quarter and fiscal year ended December 31, 2025.
2025 represented a turning point for Unusual Machines. During the year we financed and then rapidly expanded our operations. We executed against our strategy to build an enterprise sales business and have emerged as a leading domestic supplier of NDAA-compliant drone components.
During the year we strengthened the financial position of the company to execute an aggressive expansion through multiple financings. As of December 31, 2025, we held approximately $103 million in cash and $39 million in short-term investments, with no debt, resulting in net working capital of approximately $157 million. This capital position allows us to continue scaling manufacturing capacity, expanding our workforce, and investing in the infrastructure required to support the rapidly growing domestic drone ecosystem.
The growth in operations is now being realized in revenue increases. Revenue for 2025 totaled approximately $11.2 million, representing 101% year-over-year growth, and fourth quarter revenue was approximately $4.9 million, representing 133% sequential quarterly growth. This rapid growth reflects our operational scaling along with increasing demand for our products from enterprise customers.
We want to take this opportunity to provide additional context around our operational progress, financial results, and the scaling of Unusual Machines as we position the company for the next stage of growth.
Operations Update
Operationally, 2025 is a tale of two halves. The first half of the year was preparation and resourcing for growth while the second half of the year was the start of rapid operational expansion. Unusual Machines started to scale rapidly in the second half of 2025 as enterprise demand for NDAA-compliant drone components rapidly increased.
Hardware businesses like Unusual Machines must expand operational capacity substantially before revenue growth is realized. This suggests that headcount expansion is the earliest indicator of scaling and revenue improvements should come about a quarter later. In other words, we need to scale engineering, manufacturing, and operational staff to support product development and production and not realize the revenue until after the products are made and shipped.
Our workforce expansion started in the third quarter. Headcount grew from 19 employees at the end of the second quarter of 2025 to 38 employees at the end of the third quarter, and 81 employees by the end of the fourth quarter. As of today, the company has grown to more than 140 employees, and we are continuing to expand and scale production.
Revenue expansion roughly trailed operational expansion by a quarter. Revenue for quarter 2 was approximately $2.1 million, quarter 3 was approximately $2.1 million and quarter 4 was approximately $4.9 million. The capacity in quarter 3 can be approximated as double the capacity in quarter 2 (headcount doubled from 19 to 38). This quarter 3 capacity expansion is the driving force behind the quarter 4 revenue growth.
There are many other growth drivers that were initiated in the second half. We have expanded our footprint from 6,900 sq ft to 62,500 sq ft across 5 locations in Orlando. We began U.S. production of motors in November and Fat Shark headsets in January of 2026. Transitioned to a 25,000 sq ft fulfillment center in December and continue to add new employees to each operations center to meet rapidly scaling demand.
Cash Flow Management
Responsible cash management has always been core to our ethos, and I want to highlight how we balance the costs of operational growth with our cash management strategy.
We ended the year with approximately $103.3 million in cash, compared to approximately $3.7 million at the end of 2024. The increase in cash was primarily driven by several equity financings completed during the year as well as warrant exercises and ATM activity. Over the course of 2025 we raised $157.8 million through equity sales. These financings allow us to invest aggressively in scaling the company while maintaining financial flexibility and providing a working capital basis for us to manage inventory and material flow.
Cash can be allocated to many different balance sheet categories at any given time. It can be used to purchase inventory, fund capital equipment, etc. The purpose of these balance sheet activities is to use the cash to generate a positive return. The best way to measure cash flow for our business is to aggregate these categories and subtract out payables to quickly understand our entire business. We call this our working capital and is summarized in Table 3. At the end of 2025, our working capital was approximately $157.4 million. Our working capital at the end of 2024 was $5.2 million and across 2025 we raised $157.8 million through equity sales. Through all activities across 2025 we generated a cash loss of approximately $5.6 million.
In this same year, we recognized a GAAP net loss of approximately $19.2 million. This GAAP loss is primarily driven by non-cash stock compensation expense of approximately $15.7 million. Reference Table 2 for additional details on our net loss to operational loss for the fourth quarter. I believe that if Unusual Machines was cash flow positive with a relatively minimal operational net loss we would be in the “goldilocks” zone for rapid growth. It demonstrates that we are constantly re-investing in maximum growth while not creating risks from significant cash depletion. As long as we continue to sustain high YoY growth rates, we will target this type of financial performance.
Looking Ahead
Our priorities moving forward remain clear.
Scale Manufacturing
We are continuing to scale as quickly as possible. In 2026 we have already added a second and third shift to our motor production, added a second shift to our flexible assembly building, and started Fat Shark headset production. We anticipate adding battery pack manufacturing in 2026 and camera manufacturing in late 2026. We plan to dramatically increase our motor production capacity in the second half of 2026 with our automated production equipment.
Grow Revenue and Manage Margins
As we scale manufacturing, we will need to grow revenues to consume the material or we run the risk of scaling past demand and incurring significant losses. We do not believe we will be demand limited in the next 18 months. The Drone Dominance program (www.dronedominance.io) indicates the need for U.S. production of 90,000 drones in 2026 and 250,000 drones in 2027. Each drone represents about $1,000 in total revenue potential for Unusual Machines. This provides an immediately addressable market of at least $90 million this year and $250 million next year without considering the market potential of any of the other government and commercial drone programs.
Introducing new products, processes, and production facilities results in initial inefficiencies that will reduce gross margins in the short term. This margin impact is generally the most pronounced in the quarter after the facility is operational. For instance, our gross margins in Q4 of 2025 were approximately 36% while our margins from just motor production were approximately 20%. We expect margins from motor production will dip further in Q1 before rebounding as the margin impacts are not realized until after the product is shipped. Once we get past these initial inefficiencies, we will work to return margins to our 40% target.
Drive Toward Cash Flow Positive Operations
We were not cash flow positive as a company in 2025 and our operations realized a loss. Our long-term goal is to build a profitable and sustainable business. The next step toward this is for our operations to become cash flow positive. We are pushing to achieve this by the end of 2026 as revenues increase and margins recover from the anticipated drop due to the inefficiencies that come from the introduction of new operating centers and processes.
Closing Thoughts
In 2025 Unusual Machines finalized the transformation from a retail channel to a domestic drone component producer and initiated growth. The progress made in the second half of 2025 gives us a leadership position as we pursue the emerging market opportunity created by the Department of War and the FCC regulatory actions emphasizing the need for a domestic supply chain.
We significantly expanded our team, strengthened our balance sheet, and built the operational capacity needed to support increasing demand for NDAA-compliant drone components and will continue to build and expand operations to meet demand.
We believe the U.S. drone industry is still in the early stages of development, and the need for secure, domestic supply chains will continue to grow. Our focus remains on building the infrastructure necessary to support that ecosystem and we are pursuing this with the expectation that we will not be demand limited for the next 18 months.
We appreciate the continued support and confidence of our employees, our customers, and our shareholders as we work to build Unusual Machines into a leading U.S. manufacturer.
Sincerely,
Allan Evans CEO Unusual Machines
Conference Call and Webcast Details
Participants may dial (888)506-0062 or (973)528-0011 for international callers. Please use access code 695837. An audio webcast will also be available by accessing this LINK.
The numbers used below and in the tables are preliminary unaudited and subject to change. Any changes may be material.
Fourth Quarter & Full Year Financial Results
Revenues totaled approximately $4.9 million for the three months ended December 31, 2025 as compared to $2.0 million for the three months ended December 31, 2024 which was a 144% increase for the fourth quarter year over year.
Revenues totaled approximately $11.2 million for the year ended December 31, 2025 as compared to revenue of $5.6 million for the year ended December 31, 2024, which represents a 101% increase year over year.
Gross margin for the fourth quarter was approximately 36%, which improved due to the increase in our enterprise sales mix over retail sales. Our gross margin for the year ended December 31, 2025 is approximately 35%.
Our loss from operations was approximately $9.7 million for the three months ended December 31, 2025 as compared to an operating loss of $2.8 million for the three months ended December 31, 2024. Included in this is non-cash stock compensation expense of $6.1 million and $1.5 million for the three months ended December 31, 2025 and 2024, respectively. See table 2 for additional details.
Interest income was $0.9 million for the three months ended December 31, 2025 related to interest earned from our cash balance which increased from our recent common stock offerings.
Unrealized gain from short-term investments was $2.7 million for the year ended December 31, 2025 and realized gains from short-term investments was $1.4 million related to investment gains from our investments made during the year.
Net loss for the year ended December 31, 2025 was approximately $19.2 million or ($0.74) per share as compared to a net loss of approximately $31.9 million for the year ended December 31, 2024 or ($3.84) per share. See table 2 for additional details.
We had approximately $103.3 million of cash as of December 31, 2025 as compared to $3.7 million as of December 31, 2024. The increase in cash primarily relates to our common stock offerings completed in May, July and October 2025 and cash exercise of warrants in February and December 2025. See table 1 for additional details.
For further information concerning our financial results, see the tables attached to this shareholders’ letter.
About Unusual Machines
Unusual Machines manufactures and sells drone components and drones across a diversified brand portfolio, which includes Fat Shark, the leader in FPV (first-person view) ultra-low latency video goggles for drone pilots. The Company also retails small, acrobatic FPV drones and equipment directly to consumers through the curated Rotor Riot ecommerce store. With a changing regulatory environment, Unusual Machines seeks to be a dominant Tier-1 parts supplier to the fast-growing multi-billion-dollar U.S. drone industry. According to Fact.MR, the global drone accessories market is currently valued at $17.5 billion and is set to top $115 billion by 2032.
Safe Harbor Statement
This shareholder letter contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements include: our expectations concerning the growth of our operations, our business and our revenues, the growth of the NDAA-compliant drone market, our anticipated gross margins, our plans to scale manufacturing capacity including the timing and success of new production lines for motors, batteries, cameras and headsets, our ability to achieve cash flow positive operations in the future, our workforce expansion plans, and our building a profitable business and achieving positive cash flow from operations. The results expected by some or all of these forward-looking statements may not occur. Factors that affect our ability to achieve these results include the risks that enough of our customers receive orders under the Drone Dominance program or other government programs and in turn place component orders with us; our dependence on a limited number of enterprise customers and the risk of customer concentration; the risks that our inventory buildup will become obsolete or that we cannot sell such inventory at reasonable margins; our ability to manage our rapid growth, including integrating new employees and maintaining quality control; risks relating to manufacturing bugs, delays, or failure to achieve anticipated production efficiencies; the availability of a satisfactory labor pool to meet our planned growth; potential supply chain disruptions or component shortages; the impact from tariffs, including inflation and increased costs of goods sold; risks related to our dependence on government contracts and programs, including potential funding reductions, program delays, or changes in procurement priorities; the risk that our automated production equipment may not be operational on the anticipated timeline; the risk of continued dilution from future equity financings; any risk that our auditors may require us to make changes to our financial statements, and the Risk Factors contained in our Form 10-Q, filed with the Securities and Exchange Commission (the “SEC”) on November 6, 2025, Prospectus Supplements filed with the SEC on September 2, 2025, July 15, 2025, and May 6, 2025 and in our Form 10-K for the year ended December 31, 2025, which we anticipate filing in the coming days. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Any forward-looking statement made by us herein speaks only as of the date on which it is made. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Non-GAAP – Financial Measures
This shareholder letter includes both financial measures in accordance with Generally Accepted Accounting Principles, or GAAP, as well as non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternatives to net income (loss), operating income (loss), and cash flow from operating activities, liquidity or any other financial measures. They may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.
Our management uses and relies on adjusted net loss, which is a non-GAAP financial measure. We believe that management, analysts, and shareholders benefit from referring to the following non-GAAP financial measure to evaluate and assess our core operating results from period-to-period after removing the impact of items that affect comparability. Our management recognizes that the non-GAAP financial measure has inherent limitations because of the excluded items described below.
We have included in Table 2 a reconciliation of our non-GAAP financial measure to the most comparable financial measure calculated in accordance with GAAP. We believe that providing the non-GAAP financial measure, together with reconciliation to GAAP, helps investors make comparisons between the Company and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance.
Table 1
Cash balance at September 30, 2025
$
64.3M
Q4 cash financings:
At-the-market offering, net
70.0M
Warrant exercises
3.3M
Short-term investments
3.4M
Interest income
0.9M
Employee stock option exercises
0.2M
Q4 cash spend:
Normal operations
(0.4M
)
Working capital changes
(1.3M
)
Non-recurring expenses
(0.4M
)
Non-recurring investor relations
(1.0M
)
Inventory purchases
(7.7M
)
Equipment purchases
(0.5M
)
Short-term investments
(27.6M
)
Cash Balance at December 31, 2025
$
103.2M
Table 2
Net loss for three months ended December 31, 2025
$
(10.6M
)
Q4 non-cash income and expenses for the three months ended December 31, 2025:
Stock compensation expense
6.1M
Unrealized change in short term investments
3.2M
Q4 non-recurring items for the three months ended December 31, 2025:
Investor relations
1.0M
Professional fees and marketing events
0.5M
R&D costs associated with motors
0.3M
Realized gains from short-term investments
(1.4M
)
Adjusted net loss for the three months ended December 31, 2025
$
(0.9M
)
Table 3
Working Capital Detail
2025
2024
Total current assets
$
159.5M
$
6.1M
Total current liabilities less operating lease liability
(2.1M
)
(0.9M
)
Net working capital
$
157.4M
$
5.2M
Total financings, net of fees
$
157.8M
$
7.7M
Unusual Machines, Inc. Consolidated Balance Sheets
December 31,
2025
2024
ASSETS
Current assets:
Cash and cash equivalents
$
103,261,397
$
3,757,323
Short-term investments
39,214,909
–
Accounts receivable
1,779,423
66,575
Inventories
5,316,648
1,335,503
Prepaid inventory
9,748,483
904,728
Other current assets
190,622
31,500
Total current assets
159,511,482
6,095,629
Property and equipment, net
2,233,891
570
Operating lease right-of-use assets, net
2,607,256
323,514
Other assets
197,785
59,426
Goodwill
15,596,105
7,402,906
Intangible assets, net
2,561,895
2,225,530
Total non-current assets
23,196,932
10,011,946
Total assets
$
182,708,414
$
16,107,575
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses
$
1,506,793
$
668,732
Deferred revenue
638,125
197,117
Operating lease liability
456,429
67,870
Total current liabilities
2,601,347
933,669
Long-term liabilities
Deferred tax liability
146,772
93,793
Operating lease liability – long term
2,173,626
262,171
Contingent consideration
2,847,000
–
Total liabilities
7,768,745
1,289,633
Commitments and contingencies (Note 15)
–
–
Common stock – $0.01 par value, 500,000,000 authorized and 37,759,911 and 15,122,018 shares issued and outstanding at December 31, 2025 and 2024, respectively
377,596
151,221
Additional paid in capital
229,665,734
50,580,235
Accumulated deficit
(55,107,131
)
(35,913,514
)
Accumulated other comprehensive income (loss)
3,470
–
Total stockholders’ equity
174,939,669
14,817,942
Total liabilities and stockholders’ equity
$
182,708,414
$
16,107,575
Unusual Machines, Inc. Consolidated Statements of Operations and Comprehensive Income (Loss)
Year Ended December 31,
2025
2024
Revenue
$
11,199,217
$
5,565,319
Cost of goods sold
7,292,370
4,019,068
Gross profit
3,906,847
1,546,251
Operating expenses:
Operations
3,234,706
959,740
Research and development
202,585
90,584
Sales and marketing
1,581,716
1,091,268
General and administrative
23,898,633
6,250,939
Loss on impairment of goodwill
–
10,073,326
Depreciation and amortization
141,267
72,161
Total operating expenses
29,058,907
18,538,018
Loss from operations
(25,152,060
)
(16,991,767
)
Other income (expense):
Interest income
1,830,944
1,146
Interest expense
(519
)
(116,981
)
Gain on debt extinguishment
–
1,259,979
Change in fair value of derivatives and warrant liabilities
–
(16,146,205
)
Unrealized gain from short-term investments
2,469,908
–
Realized gain from short-term investments
1,623,317
–
Gain (Loss) from foreign currency transactions
(1,459
)
–
Total other income (expense)
5,922,191
(15,002,061
)
Net loss before income tax
(19,229,869
)
(31,993,828
)
Income tax benefit
36,252
13,360
Net loss
$
(19,193,617
)
$
(31,980,468
)
Comprehensive Income (Loss):
Net loss
$
(19,193,617
)
$
(31,980,468
)
Other comprehensive income (loss):
Gain from foreign currency translation
3,470
–
Comprehensive loss
$
(19,190,147
)
$
(31,980,468
)
Net loss
Basic and diluted
$
(0.74
)
$
(3.84
)
Weighted average common shares outstanding
Basic and diluted
26,015,541
8,325,128
Unusual Machines, Inc. Consolidated Statements of Changes in Stockholders’ Equity For the Years Ended December 31, 2025 and 2024
Series A, Preferred Stock
Series B, Preferred Stock
Series C, Preferred Stock
Common Stock
Additional Paid-In
Accumulated
Total Stockholders’
Shares
Value
Shares
Value
Shares
Value
Shares
Value
Capital
Deficit
Equity
Balance, December 31, 2023
–
$
–
190
$
2
–
$
–
3,217,255
$
32,173
$
5,315,790
$
(3,933,046
)
$
1,414,919
Issuance of common shares as settlement
–
–
–
–
–
–
16,086
161
64,183
–
64,344
Issuance of common shares, initial public offering, net of offering costs
–
–
–
–
–
–
1,250,000
12,500
3,837,055
–
3,849,555
Issuance of common shares, business combination
–
–
–
–
–
–
4,250,000
42,500
16,957,500
–
17,000,000
Issuance of common shares, equity incentive plan
–
–
–
–
–
–
1,330,955
13,310
(13,310
)
–
–
Issuance of common shares, private placement, net
–
–
–
–
–
–
1,286,184
12,862
1,812,842
–
1,825,704
Exchange of common shares for Series A preferred
4,250
43
–
–
–
–
(4,250,000
)
(42,500
)
42,457
–
–
Exchange of convertible note for Series C preferred
–
–
–
–
210
2
–
–
999,998
–
1,000,000
Conversion of preferred shares to common shares
(4,250
)
(43
)
(190
)
(2
)
(210
)
(2
)
5,830,000
58,300
(58,253
)
–
–
Cash exercise of warrants
–
–
–
–
–
–
684,000
6,840
1,516,860
–
1,523,700
Convertible note conversion
–
–
–
–
–
–
1,507,538
15,075
17,849,250
–
17,864,325
Stock compensation expense – vested stock
–
–
–
–
–
–
–
–
2,194,938
–
2,194,938
Stock option compensation expense
–
–
–
–
–
–
–
–
60,925
–
60,925
Net loss
–
–
–
–
–
–
–
–
–
(31,980,468
)
(31,980,468
)
Balance, December 31, 2024
–
$
–
–
$
–
–
$
–
15,122,018
$
151,221
$
50,580,235
$
(35,913,514
)
$
14,817,942
Series A, Preferred Stock
Series B, Preferred Stock
Series C, Preferred Stock
Common Stock
Additional Paid-In
Accumulated
Accumulated Other Comprehensive
Total Stockholders’
Shares
Value
Shares
Value
Shares
Value
Shares
Value
Capital
Deficit
Income
Equity
Balance, December 31, 2024
–
$
–
–
$
–
–
$
–
15,122,018
$
151,221
$
50,580,235
$
(35,913,514
)
$
–
$
14,817,942
Issuance of common shares, Management/BOD
–
–
–
–
–
–
1,870,534
18,702
(18,702
)
–
–
–
Issuance of common shares, option exercises
–
–
–
–
–
–
162,816
1,629
644,943
–
–
646,572
Issuance of common shares, consulting services
–
–
–
–
–
–
7,896
78
(78
)
–
–
–
Issuance of common shares, advisory board
–
–
–
–
–
–
258,000
2,580
(2,580
)
–
–
–
Issuance of common shares for exercise of warrants
–
–
–
–
–
–
2,015,405
20,154
5,724,773
–
–
5,744,927
Issuance of common shares, confidentially marketed public offering
–
–
–
–
–
–
8,000,000
80,000
36,416,000
–
–
36,496,000
Issuance of common shares, registered direct offering
–
–
–
–
–
–
5,000,000
50,000
44,851,000
–
–
44,901,000
Issuance of common shares, at-the-market, net of offering costs
–
–
–
–
–
–
4,666,600
46,666
69,933,868
–
–
69,980,534
Issuance of common shares, Rotor Lab acquisition
–
–
–
–
–
–
656,642
6,566
5,916,345
–
–
5,922,911
Stock compensation expense
–
–
–
–
–
–
–
–
1,868,514
–
–
1,868,514
Stock compensation expense – vested stock
–
–
–
–
–
–
–
–
13,751,416
–
–
13,751,416
Net loss
–
–
–
–
–
–
–
–
–
(19,193,617
)
–
(19,193,617
)
Foreign currency translation gain
–
–
–
–
–
–
–
–
–
–
3,470
3,470
Balance, December 31, 2025
–
–
–
$
–
–
$
–
37,759,911
$
377,596
$
229,665,734
$
(55,107,131
)
$
3,470
$
174,939,669
Unusual Machines, Inc. Consolidated Statements of Cash Flows
Year Ended December 31,
2025
2024
Cash flows from operating activities:
Net loss
$
(19,193,617
)
$
(31,980,468
)
Depreciation and amortization
141,267
72,161
Stock compensation expense as settlement
–
64,344
Stock compensation expense
15,619,929
2,255,862
Unrealized gain on short-term investments
(2,469,908
)
–
Realized gain on sale of short-term investments
(1,623,317
)
–
Loss on impairment on goodwill
–
10,073,326
Change in fair value of derivatives and warrant liabilities
–
16,146,205
Gain on debt extinguishment
–
(1,281,880
)
Credit loss provision
18,122
–
Income tax benefit
(36,252
)
(13,360
)
Change in assets and liabilities:
Accounts receivable
(1,598,551
)
(59,777
)
Inventory
(3,944,257
)
455,101
Prepaid inventory
(8,843,755
)
(83,749
)
Other assets
(137,280
)
54,940
Right of use asset
(2,353,311
)
–
Accounts payable and accrued expenses
745,949
266,690
Operating lease liabilities
2,240,020
(48,438
)
Customer deposits and other current liabilities
257,342
82,676
Net cash used in operating activities
(21,177,620
)
(3,996,367
)
Cash flows from investing activities
Cash portion of consideration paid for acquisition of businesses, net of cash received
93,054
(852,801
)
Cash paid for short-term investments
(38,550,000
)
–
Proceeds from sale of short-term investments
3,428,317
–
Purchases of property and equipment
(2,062,181
)
–
Net cash used in investing activities
(37,090,810
)
(852,801
)
Cash flows from financing activities:
Proceeds from issuance of common shares, public offering
40,000,000
5,000,000
Proceeds from issuance of common shares, registered direct offering
48,500,000
–
Proceeds from issuance of common shares, at the market
72,145,636
–
Proceeds from option exercises
646,572
–
Proceeds from issuance of common shares, private placement
–
2,047,105
Proceeds from issuance of common shares, warrant exercises
5,744,927
1,523,700
Common share issuance offering costs
(9,268,101
)
(859,087
)
Net cash provided by (used in) financing activities
157,769,034
7,711,718
Net increase (decrease) in cash
99,500,604
2,862,550
Effect of exchange rate changes on cash
3,470
–
Cash, beginning of year
3,757,323
894,773
Cash, end of year
$
103,261,397
$
3,757,323
Supplemental disclosures of cash flow information:
Non-cash consideration paid for assets acquired and liabilities assumed
$
8,769,911
$
21,000,000
Deferred acquisitions costs
$
–
$
100,000
Deferred offering costs recorded as a reduction of proceeds
Sub-Millisecond Accuracy in an Affordable Self-Contained Package
SAN DIEGO, CALIFORNIA / ACCESS Newswire / March 5, 2026 / As millions of us prepare to spring forward an hour this March, NetBurner is making sure our devices don’t miss a beat. The company is launching the NTP1061 Outdoor Network Time Server right when the time changes at 2AM this Sunday, introducing an affordable, weatherproof, self-contained NTP server to a market that’s stuck in the past. A single Power Over Ethernet cable is now all it takes to deliver sub-millisecond time accuracy to an entire network, no manual clock-setting or antenna wiring required.
“NetBurner customers have made it clear that our NTP servers are an important cornerstone of their time-sensitive operations,” said NetBurner engineer Paul Breed. “With the NTP1061 we wanted to remove every barrier to deploying precise network time. No separate antenna, no dedicated power run, no unnecessary expenses: just plug in a single Power over Ethernet cable, mount the unit with a clear view of the sky, and your whole network has access to sub-millisecond time precision. It really is accurate timekeeping on one cable.”
The NTP1061 synchronizes directly with all major GNSS satellites to provide a Stratum 1 time source, precise to under 1 microsecond, serving up to 10,000 requests per second over the network with 1-millisecond accuracy. Configuration and real-time satellite monitoring are handled through an intuitive web interface secured with HTTPS. Its compact form factor (just 13×6 cm and barely over 100 grams) along with an IP65-rated enclosure and a wide -40°C to +85°C operating range, make it equally at home on a rooftop, at a factory, or in the field.
NetBurner is committed to supporting engineers and integrators at every stage of their deployment lifecycle, including help with developing custom solutions. The NTP1061 delivers an affordable, all-in-one solution that eliminates the complexity and cost of traditional GPS time server installations, making self-contained NTP accessible to organizations of any size.
Orders for NTP1061 will be accepted starting March 8, for delivery beginning in May 2026. Customers may order through the NetBurner website or sales department. For more information, visit the product page or contact NetBurner Sales at sales@netburner.com or (858) 558-0293.
VANCOUVER, BRITISH COLUMBIA / ACCESS Newswire / March 4, 2026 / CoTec Holdings Corp. (TSX-V:CTH)(OTCQB:CTHCF) (“CoTec” or the “Company”) is pleased to announce the accelerated expiry date of the common share purchase warrants (“Warrants”) issued by the Company pursuant to the Listed Issuer Finance Exemption (“LIFE”) Offering and Private Placement announced by the Company on May 20, 2025 and completed in tranches on June 18, July 3, July 16 and July 21, 2025 (together the “Financing”).
The Company issued an aggregate of 17,339,336 Warrants pursuant to the Financing entitling the holders thereof to purchase one common share of the Company (“Common Share”) per Warrant at an exercise price of C$1.20 per Common Share for a period of 18 months following the date of issuance, subject to the Acceleration Clause (as defined herein).
The Warrants are subject to an accelerated expiry provision such that if, for any 15 consecutive trading days during the unexpired term of the Warrants, the closing price of the Common Shares on the TSX-V exceeds $1.35 (the “Acceleration Trigger”), the Company may accelerate the expiry date of the Warrants by way of an announcement (“Acceleration Clause”).
The Company hereby advises that the Acceleration Trigger has been met as a result of the closing price of the Common Shares on the TSXV exceeding $1.35 for a period of 15 consecutive trading days ended March 3, 2026. Accordingly, the accelerated expiry date of the Warrants shall be Wednesday, April 10, 2026 (“Accelerated Expiry Date”), being 37 days following the date of this notice. All Warrants that remain unexercised after 5:00 p.m. (Vancouver time) on the Accelerated Expiry Date will expire and become void and of no further force or effect.
To date, 5,132,643 Warrants have been exercised resulting in gross proceeds of $6,159,172 to the Company. If all the remaining 12,206,696 Warrants are exercised, the Company will receive further gross proceeds of approximately C$14,648,036.
About CoTec
CoTec Holdings Corp. (TSX-V:CTH)(OTCQB:CTHCF) is redefining the future of resource extraction and recycling. Focused on rare earth magnets and strategic materials, CoTec integrates breakthrough technologies with strategic assets to unlock secure, sustainable, and low-cost supply chains.
CoTec’s mission is clear: accelerate the energy transition while strengthening strategic mineral supply chains for the countries we operate in. By investing in and deploying disruptive technologies, the Company delivers capital-efficient, scalable solutions that transform marginal assets, tailings, waste streams, and recycled products into high-value critical minerals.
From its HyProMag USA magnet recycling joint venture in Texas, to iron tailings reprocessing in Québec, to next-generation copper and iron solutions backed by global majors, CoTec is building a diversified portfolio with long-term growth, rapid cash flow potential, and high barriers to entry. The result is a differentiated platform at the intersection of technology, sustainability, and strategic materials.
Statements in this press release regarding the Company and its investments which are not historical facts are “forward-looking statements” that involve risks and uncertainties. Forward-looking statements in this release include, without limitation, statements relating to the advancement, development, financing and potential construction of the Company’s projects and investments; anticipated economic metrics; expected production, permitting, engineering and execution milestones; potential strategic transactions or listings; future investment opportunities; and management’s expectations regarding the Company’s strategy and growth plans. Such forward-looking statements are based on a number of assumptions, including assumptions regarding the continued advancement of the Company’s projects, availability of financing, receipt of required permits and approvals, commodity price assumptions, and general economic and market conditions. Since forward-looking statements address future events and conditions, by their nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks, including, without limitation: risks relating to project development and execution; the ability to obtain financing on acceptable terms or at all; changes in commodity prices; changes in government regulation or policy; permitting and environmental risks; joint venture and counterparty risks; and general economic, market and industry conditions. For further details regarding risks and uncertainties facing the Company, readers are encouraged to review the Company’s public disclosure documents, which are available under the Company’s SEDAR+ profile at www.sedarplus.ca.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
WINNIPEG, MB / ACCESS Newswire / March 4, 2026 / Consumer Choice Award is pleased to announce the 2026 award recipients in the Winnipeg region. These businesses have been meticulously selected through independent market research, reflecting their commitment to excellence and unparalleled service in their city. Consumer Choice Award celebrates those who have consistently set the benchmark for quality and customer satisfaction. Congratulations to the 2026 Winnipeg Consumer Choice Award Winners.
Learn more about 2026 Winnipeg Consumer Choice Award Winners HERE.
About Consumer Choice Award: Consumer Choice Award has been recognizing and promoting business excellence in North America since 1987. Its rigorous selection process ensures that only the most outstanding service providers in each category earn this prestigious recognition. Visit www.ccaward.com to learn more.
Peer-reviewed study finds Flo Health’s Symptom Checker could deliver nearly $10,100 in net monetary benefit per patient while cutting diagnosis wait time in half
NEW YORK CITY, NY / ACCESS Newswire / March 3, 2026 / Flo Health, the world’s #1 women’s health app, today announced publication of the first-ever economic evaluation of a digital symptom checker for endometriosis, underscoring the significant financial and health benefits that digital health technology can deliver to women navigating one of the most under-recognized conditions in gynecologic care.
The study, titled “Economic evaluation of a digital symptom checker for endometriosis using a Markov decision process model,” and published in npj Digital Medicine, a top peer-reviewed journal in the Nature Portfolio, was conducted in partnership with researchers from The London School of Hygiene & Tropical Medicine and the York Health Economic Consortium. It examined the health and economic outcomes of using Flo Health’s Symptom Checker alongside standard care, compared to standard care alone.
Despite affecting approximately 190 million women globally, endometriosis carries an average diagnostic delay of seven years, during which women frequently experience severe menstrual cramps, chronic pelvic pain, and pain during intercourse while receiving insufficient guidance. This delay is associated with increased disease severity, worsening pain, and more complex treatment paths.
The research produced the following key findings:
Women using Flo Health‘s Symptom Checker alongside standard care received diagnoses in approximately 3 years, compared to the 7-year average under standard care alone, a reduction of more than 50%
Patients gained nearly three weeks of additional healthy life, as measured by quality-adjusted life years (QALYs)
The tool generated approximately $5,196 USD in savings per person over 40 years through reduced medical costs and productivity gains
The total net monetary benefit per patient reached $10,089 USD, based on a willingness-to-pay threshold of $100,000 per QALY, a common benchmark for U.S. institutional payers
“When women are empowered to take control of their health, the benefits go beyond early diagnoses to overall improved physical and emotional well-being,” said Dr. Anna Klepchukova, Chief Medical Officer at Flo Health. “This research explores how digital tools may help women better recognize their symptoms and bring clearer insights into conversations with their health care providers.”
Flo Health’s Symptom Checker is designed as an educational resource that helps users identify symptom patterns that may be consistent with endometriosis, prompting earlier engagement with health care providers. The tool is not intended to diagnose, treat, or replace professional medical care. More than 2.7 million women in the United States have used Flo Health’s Symptom Tracker for endometriosis-related support.
Researchers also noted that digital symptom checkers provide the greatest value when tool accuracy exceeds 70%, user compliance surpasses 45%, and outcomes are measured over a minimum 10-year time horizon. The authors indicate that the economic modeling framework applied in this study could be replicated to evaluate digital health tools targeting other conditions that disproportionately affect women and face similar barriers to timely diagnosis.
The publication adds to a growing body of evidence supporting Flo Health’s mission to build a better future for female health through trusted, data-backed digital tools. Flo Health currently supports 77 million monthly active users and collaborates with more than 100 medical experts worldwide.
About Flo Health
Flo Health is the leading app in the Health & Fitness category and the #1 OB-GYN-recommended app for period and cycle tracking. As the first European femtech unicorn following a General Atlantic investment in July 2024, Flo Health supports 77 million monthly active users with curated cycle and ovulation tracking, tailored health insights, and a private community for women at every stage of life. Through its Pass it on Project, Flo Health has donated 20 million Premium subscriptions toward its goal of providing 1 billion women in need with free access to health information. For more information, visit flo.health.
LOS ANGELES, CA / ACCESS Newswire / March 2, 2026 / Internationally recognized comedian and public figure Max Amini and renowned celebrity trial attorney and advocate Bobby Samini today announced the launch of a new awareness initiative dedicated to shining a light on the ongoing events in Iran and supporting the courageous Iranian people in their struggle for freedom against the Islamic Republic of Iran.
Max Amini highlighted the cultural and emotional significance of the initiative.
“As someone with deep ties to the Iranian community, this is personal,” Amini said. “Art, comedy, and storytelling have always been tools to connect people and speak truth. We want the world to see, hear, and stand with the people of Iran as they courageously fight for their rights. We are hopeful that we will soon witness a free and democratic Iran. We must stand with the people of Iran at this critical time. We know that the regime will respond with unprecedented brutality against its own people.”
Bobby Samini, whose family roots trace back to Iran, emphasized the deeply personal nature of the effort.
“The unfolding strikes in Iran have ignited a fragile but undeniable sense of hope among millions who have long dreamed of a free, democratic nation-one where dignity, liberty, and human rights are not crimes, but guarantees. Samini said. “Especially among Iran’s youth, there is a growing belief that meaningful change is finally within reach. Yet that hope is inseparable from grave concern. The Islamic regime has used overwhelming violence against its own people to maintain power, and they will again resort to mass bloodshed-even on a catastrophic scale-rather than relinquish control. Tragically, over fifty thousand young people have paid for it with their lives. Women and girls have been specifically targeted and the subject of horrific sexual abuse. History will mark this as the Iranian people’s most difficult hour.”
“We are witnessing unprecedented humanitarian violations in Iran,” said Samini. “This movement is driven by Iran’s young generation – Generation Z students, artists, and young people who refuse to inherit silence and repression. They have shown extraordinary courage.”
Through media outreach, social campaigns, and partnerships with human rights organizations, the initiative will focus on:
Raising global awareness of the ongoing situation in Iran
Highlighting stories of protesters and affected families
Encouraging public support for the Iranian people’s fight for freedom
Additional details, upcoming activations, and ways to support will be announced in the coming weeks.
For media inquiries, interviews, or partnership opportunities, please contact:
