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Pangaea Logistics Solutions Ltd. Reports Financial Results for the Three Months and Year Ended December 31, 2024

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1 year ago

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NEWPORT, R.I., March 13, 2025 /PRNewswire/ — Pangaea Logistics Solutions Ltd. (“Pangaea” or the “Company”) (NASDAQ: PANL), a global provider of comprehensive maritime logistics solutions, announced today its results for the three months and year ended December 31, 2024.

FOURTH QUARTER 2024 RESULTS

Net income attributable to Pangaea Logistics Solutions Ltd. of $8.4 million, or $0.18 per diluted shareAdjusted net income attributable to Pangaea Logistics Solutions Ltd. of $7.6 million, or $0.16 per diluted shareOperating cash flow of $19.3 millionAdjusted EBITDA of $23.2 millionTime Charter Equivalent (“TCE”) rates earned by Pangaea of $15,942 per dayPangaea’s TCE rates exceeded the average Baltic Panamax and Supramax indices by 48%Completed previously announced acquisition of fifteen handy-size dry bulk vessels from Strategic Shipping Inc. (“SSI”)

FULL YEAR 2024 RESULTS

Net income attributable to Pangaea Logistics Solutions Ltd. of $28.9 million, or $0.63 per diluted shareAdjusted Net Income attributable to Pangaea Logistics Solutions Ltd. of $29.9 million, or $0.65 per diluted shareOperating cash flow of $65.7 millionAdjusted EBITDA of $83.0 millionTime Charter Equivalent (“TCE”) rates earned by Pangaea of $16,485 per dayPangaea’s TCE rates exceeded the average Baltic Panamax and Supramax indices by 24%

For the three months ended December 31, 2024, Pangaea reported non-GAAP adjusted net income of $7.6 million, or $0.16 per diluted share, on total revenue of $147.2 million. Fourth quarter TCE rates decreased 10% on a year-over-year basis, while total shipping days, which include both voyage and time charter days, increased 17% to 4,800 days, when compared to the year-ago period.

The TCE earned was $15,942 per day for the three months ended December 31, 2024, compared to an average of $17,685 per day for the same period in 2023. During the fourth quarter ended December 31, 2024, the Company’s average TCE rate exceeded the benchmark average Baltic Panamax and Supramax indices by 48%, supported by Pangaea’s long-term contracts of affreightment (“COAs”), specialized fleet, and cargo-focused strategy.

Total Adjusted EBITDA grew by 18% year-over-year to $23.2 million in the fourth quarter of 2024. The Adjusted EBITDA margin improved to 16.4%, up from 14.9% in the same period of the prior year. The increase was primarily driven by a 17% rise in shipping days, partially offset by the impact of lower market rates when compared to the prior year period.

For the full year ended December 31, 2024, Pangaea reported non-GAAP adjusted net income of $29.9 million or $0.65 per diluted share, on total revenues of $536.5 million. Adjusted EBITDA was $83.0 million for the full year 2024, reflecting an adjusted EBITDA margin of 15.6%, compared to 16.0% for the full year 2023. Full year TCE rates increased 4.0% on a year-over-year basis in 2024, while total shipping days increased 4.2% to 17,407 when compared to 2023. The Company’s average TCE rate during 2024 exceeded the benchmark average Baltic Panamax and Supramax indices by approximately 24%, supported by Pangaea’s specialized fleet of ice-class vessels, long-term COAs, and cargo-focused strategies.

As of December 31, 2024, the Company had $86.8 million in cash and cash equivalents. Total debt, including financing obligations and finance lease liabilities, was $401.8 million, reflecting the acquisition of fifteen handy-size dry bulk vessels from SSI on December 30, 2024. Under the terms of the transaction, the Company issued approximately 18.06 million shares of its common stock to SSI and assumed $100 million of vessel related financing agreements. During the fourth quarter, the Company also purchased the remaining 50% equity ownership of its consolidated subsidiary, Nordic Bulk Partners LLC, for $19.0 million in cash.

The Company paid $18.7 million in total cash dividends during the full-year 2024, including $4.8 million in the fourth quarter, consistent with its strategic focus on a consistent and sustainable return of capital program.

MANAGEMENT COMMENTARY 

“Our fourth quarter performance was a strong finish to a transformational year for Pangaea, one in which our strong base of long-term contracts and premium-rate model supported a greater than 18% year-over-year increase in Adjusted EBITDA, despite pronounced softness in the broader dry bulk market,” stated Mark Filanowski, Chief Executive Officer of Pangaea Logistics Solutions. “Our differentiated cargo-focused strategy and leading market share across global ice-class trades has enabled us to drive continued TCE rate out performance versus the broader market, culminating in significant growth in fourth quarter profitability.”

“During the fourth quarter, we successfully completed our previously announced merger with Strategic Shipping’s (SSI) fleet of fifteen handy-sized dry bulk vessels,” continued Filanowski. “This complementary transaction will allow us to expand our business into the handy-sized segment of the market, while also leveraging these smaller vessels to grow our stevedoring and terminal services offerings. With an owned fleet of 41 vessels, supplemented by our short term chartered-in fleet, we’re in a strong position to materially expand our logistics and terminal services across a broader footprint of high-traffic ports, consistent with our strategic focus.  To that end, in 2024, we opened new terminal servicing operations in both Texas and Louisiana, while expanding our scope of services in Tampa, Florida.”

“Entering 2025, slowing global demand growth and recent policy actions have contributed to uncertainty within the dry-bulk market,” continued Filanowski. “While this uncertainty may have an inflationary impact on TCE rates, it also has the potential to lead to disruptions in the global flow of goods, leading us to remain agile across our trade networks.  First quarter 2025 to-date, we’ve performed 4,982 shipping days, while generating a TCE rate of $11,412 per day.”

“With the added scale afforded by the SSI transaction, Pangaea is uniquely positioned to drive a combination of expanded commercial growth, improved economies of scale and above-market TCE rate realization in the year ahead, while continuing to prioritize selective investments in our fleet, expanded logistics operations in strategic ports, and our stable cash dividend,” concluded Filanowski.

STRATEGIC UPDATE

Pangaea remains committed to developing a leading dry bulk logistics and transportation services company of scale, providing its customers with specialized shipping and supply chain and logistics offerings in commodity and niche markets that drive premium returns measured in time charter equivalent per day.

Leverage integrated shipping and logistics model. In addition to operating the largest high ice class dry bulk fleet of Panamax and post-Panamax vessels globally, Pangaea also performs stevedoring services, together with port and terminal operations capabilities. Following the completion of the SSI acquisition, the Company is focused on leveraging its handy sized vessels to complement and expand its terminal services and stevedoring operations. The Company continues to make progress in expanding its terminal operations in the Port of Tampa, which is on track to be complete in the second half of 2025.

Continue to drive strong fleet utilization.  In the fourth quarter, Pangaea’s 26 owned vessels were fully utilized and supplemented with an average of 26 chartered-in vessels to support cargo and COA commitments. With the completion of the SSI fleet merger at the end of the fourth quarter, the Company’s owned fleet grew to 41 vessels. Pangaea’s expanded operating fleet of 62 vessels enables the Company to dynamically meet the evolving needs of its customers while maximizing its owned fleet utilization.

Continue to upgrade fleet, while divesting older, non-core assets. The Company’s recent fleet merger with SSI maintains  the average age of the fleet to 10 years and further improves the Company’s ability to maximize TCE rates through optimal asset utilization. Going forward, the Company will continue to selectively invest in its fleet with the purpose of maximizing TCE rates, meeting evolving regulatory requirements and supporting client cargo needs on an on-demand basis.

FOURTH QUARTER 2024 CONFERENCE CALL

The Company’s management team will host a conference call to review the Company’s financial results, discuss recent events and conduct a question-and-answer session on Friday, March 14, 2025 at 8:00 a.m., Eastern Time (ET). Accompanying presentation materials will be available in the Investor Relations section of the Company’s website at https://www.pangaeals.com/investors/.

To participate in the live teleconference:

Domestic Live:           1-800-579-2543
International Live:      1-785-424-1789
Conference ID:            PANLQ424

To listen to a replay of the teleconference, which will be available through March 21, 2024:

Domestic Replay:        1-800-723-0532
International Replay:   1-402-220-2655

 

Pangaea Logistics Solutions Ltd.
Consolidated Statements of Operations

Three months ended December 31,

Twelve months ended December 31,

2024

2023

2024

2023

(unaudited)

(unaudited)

Revenues:

Voyage revenue

$     137,600,720

$     122,280,728

$      494,106,763

$      468,580,914

Charter revenue

6,588,091

7,078,975

30,326,291

23,715,895

Terminal & stevedore revenue

2,985,966

2,517,214

12,103,192

6,971,025

Total revenue

147,174,777

131,876,917

536,536,246

499,267,834

Expenses:

Voyage expense

67,673,501

57,085,198

237,478,669

227,434,670

Charter hire expense

34,424,625

33,850,149

130,763,801

111,033,537

Vessel operating expenses

14,253,734

14,713,363

55,543,547

55,783,562

Terminal & stevedore expenses

1,974,466

1,916,707

9,299,425

5,809,025

General and administrative

6,276,913

5,665,924

24,626,469

22,780,937

Depreciation and amortization

7,766,490

7,524,045

30,375,721

30,070,395

   Loss on sale of vessels

—

566,315

—

1,738,511

Total expenses

132,369,729

121,321,701

488,087,632

454,650,637

Income from operations

14,805,048

10,555,216

48,448,614

44,617,197

Other (expense) income:

Interest expense

(4,707,570)

(4,300,627)

(17,073,184)

(17,025,547)

Interest income

588,268

704,220

3,022,593

3,572,134

Loss (income) attributable to Non-controlling
interest recorded as long-term liability interest
expense

(2,682,192)

565,648

(3,103,018)

(462,150)

Unrealized gain (loss) on derivative instruments

851,346

(5,685,406)

(953,042)

(2,925,347)

Other income

198,337

338,849

1,427,530

761,485

Total other expense, net

(5,751,811)

(8,377,316)

(16,679,121)

(16,079,425)

Net income

9,053,237

2,177,900

31,769,493

28,537,772

Income attributable to noncontrolling interests

(617,845)

(1,041,698)

(2,866,110)

(2,214,472)

Net income  attributable to Pangaea Logistics
Solutions Ltd.

$         8,435,392

$         1,136,202

$        28,903,383

$        26,323,300

Earnings per common share:

Basic

$                   0.18

$                   0.03

$                    0.64

$                    0.59

Diluted

$                   0.18

$                   0.03

$                    0.63

$                    0.58

Weighted average shares used to compute
earnings per common share

Basic

45,792,112

44,815,282

45,391,855

44,773,899

Diluted

46,527,775

45,392,225

46,046,044

45,475,453

 

Pangaea Logistics Solutions Ltd.
Consolidated Balance Sheets

December 31, 2024

December 31, 2023

Assets

Current Assets

Cash and cash equivalents

$       86,805,470

$       99,037,866

Accounts receivable (net of allowance of $5,492,901 and $5,657,837 at December 31,
2024 and 2023, respectively)

42,370,830

47,891,501

Inventories

32,848,241

16,556,266

Advance hire, prepaid expenses and other current assets

29,969,352

28,340,246

Total current assets

191,993,893

191,825,879

Fixed assets, at cost, net of accumulated depreciation of $151,951,990 and
$127,015,253, at December 31, 2024 and 2023, respectively

707,826,328

474,265,171

Finance lease right of use assets, at cost, net of accumulated depreciation of
$10,697,881 and $10,539,384 at December 31, 2024 and 2023, respectively

28,771,531

30,393,823

Goodwill

3,104,800

3,104,800

Other Non-current Assets

4,760,529

5,590,295

Total assets

$     936,457,081

$     705,179,968

Liabilities and stockholders’ equity

Current liabilities

Accounts payable, accrued expenses and other current liabilities

$       46,581,567

$       34,346,202

Related party payable

1,181,015

1,490,060

Deferred revenue

15,447,488

15,629,886

Current portion of long-term debt

16,576,195

30,751,726

Current portion of financing obligations

25,267,105

18,980,512

Current portion of finance lease liabilities

2,843,750

2,989,612

Dividends payable

1,210,991

1,146,321

Total current liabilities

109,108,111

105,334,319

Secured long-term debt, net

112,720,545

68,446,309

Financing Obligations, net

229,529,792

130,037,711

Finance lease liabilities, net

10,434,298

13,229,156

Long-term liabilities – other

—

17,936,540

Stockholders’ equity:

Preferred stock, $0.0001 par value, 1,000,000 shares authorized and no shares issued or
outstanding

—

—

Common stock, $0.0001 par value, 100,000,000 shares authorized, 64,961,433 and
46,466,622 shares issued and outstanding at December 31, 2024 and 2023, respectively

6,498

4,648

Additional paid-in capital

258,659,972

164,854,546

Retained Earnings

169,155,149

159,026,799

Total Pangaea Logistics Solutions Ltd. equity

427,821,619

323,885,993

Non-controlling interests

46,842,716

46,309,940

Total stockholders’ equity

474,664,335

370,195,933

Total liabilities and stockholders’ equity

$     936,457,081

$     705,179,968

 

Pangaea Logistics Solutions Ltd.
Consolidated Statements of Cash Flows

Years ended December 31,

2024

2024

Operating activities

Net income

$          31,769,493

$          28,537,772

Adjustments to reconcile net income to net cash provided by operations:

Depreciation and amortization expense

30,375,721

30,070,395

Amortization of deferred financing costs

1,033,735

946,593

Amortization of prepaid rent

121,865

121,532

Unrealized loss on derivative instruments

953,042

2,925,347

Income from equity method investee

(1,709,593)

(684,470)

Earnings attributable to non-controlling interest recorded as interest expense

3,103,018

462,150

Provision for doubtful accounts

1,835,064

2,938,879

Loss on sales of vessels

—

1,738,511

Drydocking costs

(6,202,093)

(4,154,283)

Share-based compensation

2,788,190

2,087,807

Change in operating assets and liabilities:

Accounts receivable

3,685,607

(14,075,231)

Inventories

(11,030,458)

12,548,170

Advance hire, prepaid expenses and other current assets

(2,688,870)

(342,776)

Accounts payable, accrued expenses, other current liabilities and related party payable

11,839,070

(4,079,047)

Deferred revenue

(182,398)

(5,254,072)

Net cash provided by operating activities

65,691,393

53,787,277

Investing activities

Purchase of vessels and vessel improvements

(69,264,985)

(27,264,044)

Proceeds from sale of vessels

—

17,271,489

Acquisitions, net of cash acquired

—

(7,200,000)

Purchase of equipment and internal use software

(167,481)

—

Contributions to non-consolidated subsidiaries

(171,699)

(427,270)

Dividends received from equity method investments

1,910,000

1,637,500

Net cash used in  investing activities

(67,694,165)

(15,982,325)

Financing activities

Proceeds from long-term debt

64,150,000

—

Payments of financing and issuance costs

(2,043,785)

—

Payments of long-term debt

(33,082,460)

(15,782,528)

Proceeds from financing obligations

25,000,000

—

Payments on financing obligations

(19,180,510)

(11,295,522)

Payments of finance leases

(2,989,613)

(8,942,609)

Dividends paid to non-controlling interests

(2,333,334)

(10,400,000)

Common stock accrued dividends paid

(18,710,364)

(18,103,750)

Cash paid for incentive compensation shares relinquished

—

(127,283)

Payments to non-controlling interest recorded as long-term liability

(21,039,558)

(2,500,000)

Net cash used in financing activities

(10,229,624)

(67,151,692)

Net (decrease) increase in cash and cash equivalents

(12,232,396)

(29,346,740)

Cash and cash equivalents at beginning of period

99,037,866

128,384,606

Cash and cash equivalents at end of period

$          86,805,470

$          99,037,866

Supplemental cash flow items:

Cash paid for interest

$          17,983,252

$          18,850,078

Acquisition of Strategic Shipping Inc. through issuance of 18,059,342 shares of common stock,
with a value of $91,019,086, as non-cash consideration.

$          91,019,086

$                        —

Fair value of loans and lease liabilities (ASC 842) assumed

$        100,049,292

$                        —

 

Pangaea Logistics Solutions Ltd.
Reconciliation of Non-GAAP Measures
(unaudited)

For the three months ended

For the twelve months ended

December 31,
2024

December 31,
2023

December 31,
2024

December 31,
2023

Net Transportation and Service Revenue

Gross Profit

$   21,156,847

$   16,877,815

$    73,184,997

$   69,246,559

Add:

Transportation and service depreciation and amortization

7,691,604

7,433,685

30,265,807

29,960,481

Net transportation and service revenue

$   28,848,451

$   24,311,500

$ 103,450,804

$   99,207,040

Adjusted EBITDA

Net Income

$     9,053,237

$     2,177,900

$    31,769,493

$   28,537,772

Interest expense, net

4,119,302

3,596,407

14,050,591

13,453,413

Income (loss) attributable to Non-controlling interest
recorded as long-term liability interest expense

2,682,192

(565,648)

3,103,018

462,150

Depreciation and amortization

7,766,490

7,524,045

30,375,721

30,070,395

EBITDA

23,621,221

12,732,704

79,298,823

72,523,730

Non-GAAP Adjustments:

Loss on sale of vessels

—

566,315

—

1,738,511

Share-based compensation

475,005

694,293

2,788,190

2,087,807

Unrealized (gain) loss on derivative instruments, net

(851,346)

5,685,406

953,042

2,925,347

Other non-recurring items

—

3,195

—

448,373

Adjusted EBITDA

$   23,244,880

$   19,681,913

$    83,040,055

$   79,723,768

Earnings Per Common Share

Net income attributable to Pangaea Logistics Solutions Ltd.

$     8,435,392

$     1,136,202

$    28,903,383

$   26,323,300

Weighted average number of common shares – basic

45,792,112

44,815,282

45,391,855

44,773,899

Weighted average number of common shares – diluted

46,527,775

45,392,225

46,046,044

45,475,453

Earnings per common share – basic

$               0.18

$               0.03

$                0.64

$               0.59

Earnings per common share – diluted

$               0.18

$               0.03

$                0.63

$               0.58

Adjusted EPS

Net income  attributable to Pangaea Logistics Solutions Ltd.

$     8,435,392

$     1,136,202

$    28,903,383

$   26,323,300

Non-GAAP

Add:

Loss on sale of vessels

—

566,315

—

1,738,511

Unrealized (gain) loss on derivative instruments, net

(851,346)

5,685,406

953,042

2,925,347

Other non-recurring items

—

3,195

—

448,373

Non-GAAP adjusted net income attributable to Pangaea
Logistics Solutions Ltd.

$     7,584,046

$     7,391,118

$    29,856,425

$   31,435,531

Weighted average number of common shares – basic

45,792,112

44,815,282

45,391,855

44,773,899

Weighted average number of common shares – diluted

46,527,775

45,392,225

46,046,044

45,475,453

Adjusted EPS – basic

$               0.17

$               0.16

$                0.66

$               0.70

Adjusted EPS – diluted

$               0.16

$               0.16

$                0.65

$               0.69

INFORMATION ABOUT NON-GAAP FINANCIAL MEASURES. As used herein, “GAAP” refers to accounting principles generally accepted in the United States of America.  To supplement our consolidated financial statements prepared and presented in accordance with GAAP, this earnings release discusses non-GAAP financial measures, including non-GAAP  net revenue, non-GAAP adjusted EBITDA and non-GAAP Adjusted EPS. These are considered non-GAAP financial measures as defined in Rule 101 of Regulation G promulgated by the Securities and Exchange Commission.  Generally, a non-GAAP financial measure is a numerical measure of a company’s historical or future performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use non-GAAP financial measures for internal financial and operational decision making purposes and as a means to evaluate period-to-period comparisons of the performance and results of operations of our core business.  Our management believes that non-GAAP financial measures provide meaningful supplemental information regarding the performance of our core business by excluding charges that are not incurred in the normal course of business. Non-GAAP financial measures also facilitate management’s internal planning and comparisons to our historical performance and liquidity.  We believe certain non-GAAP financial measures are useful to investors as they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and are used by our institutional investors and the analyst community to help them analyze the performance and operational results of our core business.

Gross Profit. Gross profit represents total revenue less net transportation and service revenue and less vessel depreciation and amortization.

Net transportation and service revenue. Net transportation and service revenue represents total revenue less the total direct costs of transportation and services, which includes charter hire, voyage and vessel operating expenses. Net transportation and service revenue is included because it is used by management and certain investors to measure performance by comparison to other logistic service providers. Net transportation and service revenue is not an item recognized by the generally accepted accounting principles in the United States of America, or U.S. GAAP, and should not be considered as an alternative to net income, operating income, or any other indicator of a company’s operating performance required by U.S. GAAP. Pangaea’s definition of net transportation and service revenue used here may not be comparable to an operating measure used by other companies.

Adjusted EBITDA and adjusted EPS. Adjusted EBITDA represents net income (or loss), determined in accordance with U.S. GAAP, excluding interest expense, income taxes, depreciation and amortization, loss on sale and leaseback of vessels, share-based compensation and other non-operating income and/or expense, if any. Earnings per share represents net income divided by the weighted average number of common shares outstanding. Adjusted earnings per share represents net income attributable to Pangaea Logistics Solutions Ltd. plus, when applicable, loss on sale of vessel, loss on sale and leaseback of vessel, loss on impairment of vessel, unrealized gains and losses on derivative instruments, and certain non-recurring charges, divided by the weighted average number of shares of common stock.

There are limitations related to the use of net revenue versus income from operations, adjusted EBITDA versus income from operations, and adjusted EPS versus EPS calculated in accordance with GAAP.  In particular, Pangaea’s definition of adjusted EBITDA used here are not comparable to EBITDA.

The table set forth above provides a reconciliation of the non-GAAP financial measures presented to the most directly comparable financial measures prepared in accordance with GAAP.

About Pangaea Logistics Solutions Ltd.

Pangaea Logistics Solutions Ltd. (NASDAQ: PANL) and its subsidiaries (collectively, “Pangaea” or the “Company”) provides seaborne drybulk logistics and transportation services as well as terminal and stevedoring services. Pangaea utilizes its logistics expertise to service a broad base of industrial customers who require the transportation of a wide variety of drybulk cargoes, including grains, coal, iron ore, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone. The Company addresses the logistics needs of its customers by undertaking a comprehensive set of services and activities, including cargo loading, cargo discharge, port and terminal operations, vessel chartering, voyage planning, and vessel technical management. Learn more at www.pangaeals.com.

Investor Relations Contacts

Gianni Del Signore

Noel Ryan or Stefan Neely

Chief Financial Officer          

401-846-7790

Investors@pangaeals.com

PANL@val-adv.com

Forward-Looking Statements

Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The Company disclaims any obligation to publicly update or revise these statements whether as a result of new information, future events or otherwise, except as required by law.  Such risks and uncertainties include, without limitation, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors, as well as other risks that have been included in filings with the Securities and Exchange Commission, all of which are available at www.sec.gov. 

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SOURCE Pangaea Logistics Solutions LTD

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BEIJING, April 30, 2026 /PRNewswire/ — At Auto China 2026, Reach officially unveiled its full-stack product portfolio designed to accelerate the intelligent evolution of AI vehicles. Industry leaders and experts, along with executives and representatives from Honda, Toyota, FAW, Geely, GAC, Dongfeng Voyah, FAW Jiefang, BMW, Volkswagen CARIAD, Chery, Nissan, Mazda, Hitachi Astemo, Bosch, UAES, ZTE Microelectronics and other global OEMs and industry partners, visited the booth for in-depth discussions on the future of AI-powered mobility and intelligent vehicle evolution.

At the show, Reach demonstrated how AI vehicles are moving from “responding to commands” to “understanding intent and proactively serving users.” Human-vehicle interaction is evolving from isolated smart functions to integrated intelligent experiences, creating a new vision for future mobility.

Supporting this transformation is Reach’s full-stack portfolio covering five key areas: AI Vehicle Neural Foundation, Emotional Cognition, Intelligent Driving Brain, Vehicle-Cloud Computational Brain, and Energy Heart.

At the core is NeuSAR OS, the digital foundation for AI vehicles. Backed by over 10 million production deployments, it provides secure, reliable, and scalable support for AI applications, enabling unified management of vehicle-wide capabilities, cross-domain resources, and AI Agents while improving development efficiency by 30%–50%.

Cloud OS introduces a vehicle-cloud collaborative computing architecture that allows flexible scheduling between onboard small models and cloud-based large models, reducing hardware dependency and optimizing computing costs.

For intelligent driving, Reach’s full-stack AI solution and fifth-generation architecture NeuAUTO support faster mass production across passenger and commercial vehicles through unified software architecture and end-to-end AI models.

Reach AI Data-driven EV power system enables proactive battery health management and energy optimization. It also introduced AI-powered automated testing systems to improve testing efficiency and coverage.

Reach also launched its lifecycle-wide AI Agent solution, built on a full-domain data platform and intelligent systems for planning, after-sales, and operations, it supports product planning, price forecasting, safety monitoring, and customer operations across the full vehicle lifecycle.

As AI vehicles evolve toward full-system intelligence, system-level capability building and ecosystem collaboration are becoming the key to competitiveness. Reach is collaborating with global OEMs, Tier 1 suppliers, and semiconductor partners to accelerate large-scale industrial deployment.

Looking ahead, Reach continues advancing its full-stack portfolio through stronger innovation and deeper ecosystem collaboration, enabling vehicles evolve into true intelligent agents and delivering smarter, safer, and more trusted mobility experiences worldwide.

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SOURCE Reach

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Hydreight Reports Record Fiscal 2025 Results as VSDHOne Drives Rapid Growth and Platform Scale

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May 1, 2026

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Achieves profitability, scales to 11,000+ platform licenses, and strengthens balance sheet with $15.7M in cash 

VANCOUVER, BC and LAS VEGAS, April 30, 2026 /PRNewswire/ – Hydreight Technologies Inc. (“Hydreight” or the “Company”) (TSXV: NURS) (OTCQB: HYDTF) (FSE: SO6), a U.S.-focused digital health infrastructure platform, is pleased to report its audited financial results for the year ended December 31, 2025. All figures are in Canadian dollars unless otherwise stated. All references to Non-GAAP Financial Measures1 2 are as reported in the Company’s amended and restated Management Discussion and Analysis dated April 30, 2026 (“MD&A”).

Revenue reached $35.4M in 2025, with $43.6M in Adjusted Revenue1 (non-GAAP) and $2.5M in Adjusted EBITDA2 (non-GAAP), reflecting strong growth and improving operating leverage.

The Company achieved net income of $1.69M and continued to scale its platform, driven by accelerating adoption of VSDHOne and expanding transaction volumes across its national healthcare network.

FULL YEAR 2025 HIGHLIGHTS

All comparisons below are to the year ended December 31, 2024, unless otherwise noted.

Revenue: $35.4M vs. $16.04M (+121% YoY)Adjusted Revenue:(1) $43.56M vs. $22.32M (+95% YoY)Adjusted EBITDA:(2) $2.5M vs. $136K (+1,765% YoY)Rising Operating Leverage: OPEX as a % of revenue fell from 38% to 22%2025 Year-end Cash Position: $15.65M vs. $1.19M (strong balance sheet improvement)Positive Adjusted EBITDA2 across the year, reflecting improving operating leverageOver 11,000 licenses signed across the VSDHOne platform, which the Company believes demonstrates strong demand and accelerating adoption

4th QUARTER 2025 HIGHLIGHTS

All comparisons below are to the quarter ended December 31, 2024, unless otherwise noted

Revenue: $14.95M vs. $4.04M (+270% YoY)Adjusted Revenue:(1) $16.85M vs. $5.74M (+193% YoY)Adjusted EBITDA:(2) $1.58M vs. ($0.1M)Rising Operating Leverage: OPEX as a % of revenue fell to 15% in Q4 2025, versus 34% in Q4 2024

The Company believes the following Non-GAAP financial measures provide meaningful insight to its shareholders in understanding the Company’s performance and may assist in the evaluation of the Company’s business relative to that of its peers.

Notes:

(1) “Adjusted Revenue” is a non-GAAP financial measure, and the figures reflect gross economic activity processed through the Company’s platform and should not be considered revenue recognized under IFRS. See “Non-GAAP Financial Measures” section below for definition.

(2) “Adjusted EBITDA” is a non-GAAP financial measure and reflects EBITDA plus additions for atypical and non-recurring charges. See “Non-GAAP Financial Measures” section below for definition.

The following table is included to provide a reconciliation of the Company’s non-GAAP financial measures to the most directly comparable IFRS measures and to enhance the comparability and transparency of the Company’s financial performance for investors.

    Three months ended December 31,

        Twelve months ended December 31,

2025

2024

%
change

2025

2024

%
change

Adjusted Revenue

$                   16,853,102

$     5,742,523

193 %

$               43,563,753

$            22,321,265

95 %

  Deduct – deferred business partner contract
revenue

(313,878)

208,436

425,945

(45,317)

  Deduct – business partner payouts on app
service gross revenue

2,218,121

1,493,509

7,752,770

6,321,866

GAAP Revenue

$                   14,948,859

$     4,040,578

270 %

$               35,385,038

$            16,044,716

121 %

Adjusted Gross Margin

$                     2,924,341

$     1,580,387

85 %

$                 9,429,151

$              5,650,936

67 %

  Deduct – deferred business partner contract
revenue

(313,878)

208,436

425,945

(45,317)

GAAP Gross Margin

$                     3,238,219

$     1,371,951

136 %

$                 9,003,206

$              5,696,253

58 %

Adjusted EBITDA

$                     1,577,760

$         (83,191)

$                 2,542,895

$                 136,334

1765 %

  Deduct – amortization and depreciation

127,982

62,853

452,772

181,136

  Deduct – share-based payments

8,843

87,889

82,385

614,877

  Deduct – interest and accretion

452,209

–

586,354

–

  Deduct – sales tax provision, net cash paid

252,603

(254,510)

252,603

(254,510)

  Deduct – impairment charge

54,814

–

54,814

–

  Deduct – income tax expense

(119,249)

–

(119,249)

–

  Deduct – deferred tax recovery

699,586

–

699,586

–

GAAP Net Income (Loss)

$                     1,261,646

$          20,577

6031 %

$                 1,694,304

$                (405,169)

518 %

Shane Madden, CEO of Hydreight, commented:

“2025 was a defining year for Hydreight. We transitioned from a growing platform into a scaled healthcare infrastructure business, with strong revenue growth and sustained profitability.

The acceleration we saw in the second half of the year was driven largely by the rollout of VSDHOne, which is now becoming a meaningful contributor to both revenue and long-term scalability.

As we move into 2026, our focus is on expanding our partner network, increasing transaction volume across the platform, and continuing to grow our compliant healthcare infrastructures in the United States.”

BUSINESS PERFORMANCE & DRIVERS

VSDHOne – Core Growth Engine

The Company’s VSDHOne platform, launched in 2025, was a primary driver of growth, contributing to:

Rapid onboarding of new partnersExpansion of direct-to-consumer healthcare brandsIncreased transaction volume across telehealth and pharmacy services

Revenue growth in 2025 was primarily driven by VSDHOne-related activity, combined with continued organic growth across existing partners.

The platform ramped significantly through the second half of the year, with Q4 alone contributing $14.9M in revenue, representing approximately 270% growth compared to the same period in 2024. This acceleration reflects strong demand from partners seeking compliant, turnkey solutions and demonstrates the Company’s ability to scale transaction volume efficiently across its infrastructure.

OPERATING METRICS & VOLUME GROWTH

Operational performance across the Company’s core verticals continued to strengthen throughout 2025.

The Company’s first two verticals continued their historical growth in 2025, supported by alignment with broader market trends and the introduction of direct-to-consumer products and services through Hydreight’s proprietary platform structure.

Completed Services revenue in Q4 2025 for the first vertical increased by approximately 44% compared to the same period in 2024Completed Services revenue for the first vertical in 2025 increased by approximately 17% compared to 2024New nurse sign-ups increased by approximately 45% in 2025 compared to 2024

These metrics reflect continued growth in the Company’s core service offerings, expansion of its provider network, and increasing utilization across the platform.

PLATFORM SCALE & NETWORK EFFECTS

Hydreight continues to expand its position as a leading healthcare infrastructure platform:

11,000+ licenses signed across VSDHOneNational footprint across all 50 U.S. statesNetwork of healthcare providers, pharmacies, and partners

The Company believes that this scale reflects growing demand from businesses seeking compliant, turnkey solutions to enter and expand within the U.S. healthcare market.

MULTI-VERTICAL REVENUE MODEL

Hydreight generates revenue across three primary streams:

Business partner subscription contractsTelehealth consultation and platform commissionsPharmacy sales

Growth was supported by:

Expansion of product offerings (GLP-1s, peptides, NAD, TRT, and more)Increased partner utilizationBroader adoption across wellness verticals

PROFITABILITY & OPERATING LEVERAGE

Hydreight achieved strong improvements in Adjusted EBITDA, a non-GAAP measure:

Adjusted EBITDA: $2.5M in 2025 vs. $0.14M in 2024 (+1,765% YoY)Net income (loss): $1.69M in 2025 vs. $(0.41)M in 2024

Performance strengthened meaningfully in the fourth quarter, reflecting the scaling of the platform in the second half of the year.

Q4 Adjusted EBITDA: $1.58M vs. ($0.10M) in Q4 2024

This reflects:

Platform scalabilityRevenue growth outpacing cost increasesImproved operational efficiency

This improvement reflects the operating leverage inherent in the Company’s platform model and was not solely a function of higher revenue. As transaction volumes scaled across VSDHOne, incremental revenue flowed through at higher margins, supported by a largely fixed regulatory, pharmacy, and technology infrastructure. As a result, revenue growth outpaced cost growth, driving improved profitability and demonstrating the scalability of the Company’s platform.

¹ See “Non-GAAP Financial Measures and Reconciliation”.

BALANCE SHEET & LIQUIDITY

Cash: $15.65M (vs. $1.2M in 2024)Working Capital: ~$15.7M (vs. deficiency of $2.5M in 2024)Strong capital position to support ongoing operations

The Company also completed a $15M financing in January 2026, subsequent to year‑end, further strengthening its ability to scale operations and pursue strategic initiatives.

Including the $15M financing completed in January 2026, the Company has access to over $30.7M in capital to support growth initiatives.

Please see SEDAR+ for the Company’s consolidated audited financial statements and MD&A for the year ended December 31, 2025.

STRATEGIC INITIATIVES & MILESTONES

Hydreight continues to expand its platform through strategic initiatives and partnerships.

During 2025, the Company:

Strengthened its vertically integrated healthcare infrastructureExpanded its national pharmacy networkInvested in next-generation platform capabilities (VSDHOne 2.0)Established strategic relationships to enhance product innovation and distribution

In 2026, Hydreight further expanded its strategic initiatives through an investment in Insu Therapeutics, a company focused on developing innovative delivery mechanisms for peptide-based therapies. This aligns with Hydreight’s long-term strategy of supporting next-generation treatments across its platform.

OUTLOOK

Hydreight is entering 2026 with strong momentum, supported by:

Continued onboarding of new partnersIncreasing transaction volumes across VSDHOneRecent capital deployment initiativesExpansion into new healthcare verticals

As of the end of Q1 2026, VSDHOne has surpassed 12,000 licenses sold, reflecting continued momentum in platform adoption.

Management remains focused on scaling the platform while maintaining disciplined growth and operational efficiency.

“We look forward to discussing these results in more detail on our upcoming earnings call.” -Shane Madden

ANNUAL FILINGS

The Company’s audited annual financial statements for the year ended December 31, 2025, and the associated MD&A, including a full discussion of non-GAAP financial measures and their reconciliation to IFRS measures, have been filed on SEDAR+ at www.sedarplus.ca and are available on the Company’s issuer profile. Readers are encouraged to review the complete financial statements and MD&A in conjunction with this press release. The Company refiled its MD&A to correct a typographical error in the calculation of Adjusted EBITDA. No other changes have been made.

UPCOMING EARNINGS CALL

Hydreight Technologies will host a live earnings call to discuss its Q4 and full-year 2025 financial results, provide a business update, and outline the Company’s strategic priorities heading into 2026.

Date & Time: Friday, May 1, 2026 at 9:00am – 10:00pm EST

Registration Link: https://hydreight.zoom.us/webinar/register/WN_vP-U6hAiRf2Ejg8muQcocQ

The call will include a formal presentation followed by a live Q&A session. Investors are encouraged to attend to gain deeper insight into Hydreight’s growth strategy and platform expansion.

Clarification on Engagement of GRA Enterprises

Further to the Company’s news release early last year dated February 27, 2025, the Company wishes to clarify that its prior 3-month engagement of GRA Enterprises LLC (doing business as National Inflation Association) (“GRA”) was not renewed and as such was terminated effective May 27, 2025.

Under the engagement, the Company paid GRA an aggregate fee of USD $30,000 in cash pursuant to the GRA Engagement. The fee was paid from general working capital at the commencement of the engagement. No securities, stock options, or other equity-based compensation were issued or granted in connection with the engagement.

The engagement was conducted at arm’s length and has been fully concluded, with no ongoing obligations or amounts payable by the Company.  To the Company’s knowledge, neither GRA nor its principal, Gerard Adams, holds any direct or indirect interest in the Company or its securities, nor any right to acquire such an interest.

On behalf of the Board of Directors

Shane Madden
Director and Chief Executive Officer
Hydreight Technologies Inc.

Hydreight Technologies Inc Ranked Number 56 Fastest-Growing Company in North America on the 2024 Deloitte Technology Fast 500™

Hydreight Technologies Recognized as a Top 50 TSX Venture Exchange Company

About Hydreight Technologies Inc.
Hydreight Technologies Inc is building one of the largest mobile clinic networks in the United States. Its proprietary, fully integrated platform has hosted a network of over 3000 nurses, over 300 doctors and a pharmacy network through its Doctor networks across 50 states. The platform includes a built-in, easy-to-use suite of fully integrated tools for accounting, documentation, sales, inventory, booking, and managing patient data, which enables licensed healthcare professionals to provide services directly to patients at home, office or hotel. Hydreight is bridging the gap between provider compliance and patient convenience, empowering nurses, med spa technicians, and other licensed healthcare professionals. The Hydreight platform allows healthcare professionals to deliver services independently, on their own terms, or to add mobile services to existing location-based operations. Hydreight has a 503B pharmacy network servicing all 50 states and is closely affiliated with a U.S. certified e-script and telemedicine provider network.

About VSDHOne – Direct to Consumer Platform
Developed in partnership with Victory Square Technologies (CSE: VST) (OTC: VSQTF) (FWB: 6F6), Hydreight Technologies launched the VSDHOne platform. VSDHOne simplifies the entry challenges for companies and medi-spa businesses to enter the online healthcare space compliantly. This platform is expected to help businesses launch direct-to-consumer healthcare brand in a matter of days in all 50 states. Compliant offerings include: GLP-1s, peptides, personalized healthcare treatments, sermorelin, testosterone replacement therapy (“TRT”), hair loss, skincare, sexual health and more. Hydreight invested in technology, legal and infrastructure to launch this platform. The VSDHOne platform offers a complete, and modular end-to-end solution for businesses looking to launch direct-to-consumer healthcare brands. From compliance and telemedicine technology to nationwide doctor and pharmacy networks, VSDHOne provides all the tools needed for a seamless entry into the online healthcare space. The platform is designed to significantly reduce the time and costs associated with launching such services, making it possible for businesses to go live in days instead of months.

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

Use of Non-GAAP Financial Measures:
The Company uses certain non-GAAP financial measures to assess its operating performance, and this press release contains non-GAAP financial measures, including “Adjusted Revenue” and “Adjusted EBITDA”. These measures are not recognized under International Financial Reporting Standards (“IFRS”) and do not have standardized meanings prescribed by IFRS or GAAP.

The Company defines Adjusted Revenue as gross cash income before adjustment for the deferred portion of business partner contract revenue and gross receipts from Hydreight App service sales. The Company defines Adjusted Gross Margin as GAAP gross margin plus inventory impairment plus the deferred portion of business partner contract revenue. The Company defines Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization and before (i) transaction, restructuring, and integration costs (ii) share-based payments expense, (iii) gains/losses that are not reflective of ongoing operating performance including inventory impairment and (iv) sales tax provision, net of actual cash payments to state tax authorities. 

Adjusted Revenue reflects the gross economic activity processed through the Company’s platform during the applicable period and may differ materially from revenue recognized under IFRS, which is based on revenue recognition and deferral requirements. Adjusted Revenue is not a measure of financial performance or profitability and should not be considered a substitute for revenue determined in accordance with IFRS.  As used, Adjusted Revenue accelerates cash receipts relative to IFRS revenue recognition. Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss) prepared in accordance with IFRS.

The Company believes that these non‑GAAP measures provide information useful to investors in understanding historical operating trends and the scale of the Company’s platform relative to its peers but does not intend for such measures to represent future performance. This data is furnished to provide additional information and does not have any standardized meaning prescribed by IFRS. Accordingly, it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and is not necessarily indicative of other metrics presented in accordance with IFRS.

Cautionary Note Regarding Forward-Looking Information
This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes information regarding expectations for the Company’s 2026 strategic outlook, growth, platform scaling initiatives, and anticipated expansion of VSDHOne and other platform offerings.

Forward‑looking information is based on management’s expectations, estimates and assumptions as of the date hereof, including assumptions regarding: continued partner adoption, stable regulatory regimes applicable to telehealth and pharmacy operations in the United States, availability of capital, and general economic conditions.

Investors are cautioned that forward-looking information is not based on historical facts but instead reflects the Company’s management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company.

Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the ability to obtain requisite regulatory and other approvals with respect to the business operated by the Company and/or the potential impact of the listing of the Company’s shares on the TSXV on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; compliance with extensive government regulation; and the diversion of management time as a result of being a publicly listed entity. This forward-looking information may be affected by risks and uncertainties in the business of the Company and market conditions.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

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SOURCE Hydreight Technologies Inc.

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Scaled Commercial Breakthrough: OMODA & JAECOO AiMOGA Robotics Secures 1,000 Robot Orders, Boosting Smart City Deployment Step by Step

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May 1, 2026

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KUALA LUMPUR, Malaysia and WUHU, China, May 1, 2026 /PRNewswire/ — In response to steady advancement of smart city construction and the actual demand for efficient, low-cost urban public service equipment, OMODA & JAECOO officially launched the full-scale commercial layout of AiMOGA Robotics at the 2026 Chery International Business Summit in Wuhu. Centering on the theme “Driven by Scenarios, United for Growth”, the event witnessed a key industrial breakthrough: AiMOGA Intelligent Police Robots secured 1,000 intentional signing orders and completed an official concentrated delivery of 100 units, laying a solid foundation for orderly large-scale promotion and practical scenario operation in urban roads, traffic hubs and daily public governance links.

Jointly developed by OMODA & JAECOO and the professional AiMOGA technical team, the robotic product lineup covers humanoid robots, quadruped robots and core intelligent patrol robots. Drawing on the brand’s mature intelligent vehicle underlying technologies in perception, planning and control, the equipment retains high operational stability. It can well adapt to daily road conditions and climatic environments, independently completing core practical tasks such as real-time traffic guidance, illegal parking identification and fixed-route auxiliary patrols, effectively assisting local frontline staff and optimizing urban refined management efficiency.

Chery Group pointed out that intelligent vehicles and robots share core technological homology, and the batch signing and delivery officially means AiMOGA enters the stage of large-scale standardized commercialization. The products have been iteratively optimized in more than 100 real scenarios across 50 countries including Malaysia, with reliable performance that meets local application standards. Relying on supporting facilities such as university talent cooperation projects, 31 innovation laboratories and a special robot leasing platform launched at the conference, OMODA & JAECOO will steadily improve local supporting service capabilities. The brand will rely on its global channel advantages to accelerate the localized landing of embodied intelligent equipment, pragmatically empower the steady development of smart urban governance industry, and jointly build a complete regional intelligent service ecology with local partners.

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