Consolidated gross revenues¹ of $9.7 million in Q2 2026, with core business revenues growing 6% year-over-year excluding political and advocacy spendGross margin expanded to 61%, up 8 percentage points from Q1 2026 and before the return of higher-margin political and advocacy spending in the second half.Efficiency gains and growth initiatives narrow Adjusted EBITDA² loss to $2.7 million in Q2 2026 from $3.4 million in Q1, with Adjusted EBITDA margin³ improving 14 percentage points, positioning Sabio for second-half profitability⁷U.S. Programmatic revenue⁴ was $2.9 million in Q2 2026, compared with $0.8 million in Q2 2025; U.S. Programmatic customers increased 116% year-over-year, with approximately 90% renewing from Q1 into Q2Europe, the Middle East and Africa (“EMEA”) sales⁵ of $5.0 million for 1H 2026 matching full-year 2025 EMEA salesU.S. Programmatic and EMEA revenues represented 49% of Q2 2026 gross sales, up from 10% a year earlierGlobal (US and EMEA) new customer logos increased 77% year-over-year, representing 35% of Q2 customer logosReoccurring revenues⁶ represented 82% of revenues, including 92% in the U.S.More than $5 million in political and advocacy commitments secured for the second half of 2026Conference call to be hosted on August 20, 2026

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

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

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

Second Quarter 2026 Financial Highlights

Excluding political and advocacy spend, core business revenues grew 6% year-over-year, demonstrating continued growth across Sabio’s branded business ahead of the anticipated second-half election cycle.Consolidated gross revenues1 were $9.7 million, compared to $11.7 million in the prior-year quarter. The year-over-year decline primarily reflected lower political and advocacy spending, which in election years is historically concentrated in the third and fourth quarters.Gross margin on net revenues increased to 61%, compared with 53% in Q1 2026, an improvement of 8 percentage points sequentially. The improvement was driven by better supply agreements, technology efficiencies and an improving revenue mix. We expect further margin improvement in H2, supported by these supply terms and the return of higher-margin political and advocacy spending.EMEA revenue5 reached $1.9 million in Q2 2026, with first-half 2026 EMEA sales of $5.0 million matching full-year 2025 EMEA sales of $5.0 million.App Science® AI-driven U.S. Programmatic revenue4 was $2.9 million in Q2 2026, compared with $0.8 million in Q2 2025, and represented approximately 30% of consolidated gross sales.EMEA and U.S. Programmatic, two of Sabio’s key growth offerings, combined represented approximately 49% of consolidated gross sales in Q2 2026, compared with approximately 10% in the prior-year quarter, highlighting the continued scaling and diversification of Sabio’s revenue base.Ad-supported streaming (CTV/OTT) gross revenues7 were $6.2 million, compared with $7.9 million in Q2 2025. The decline primarily reflected approximately $1.6 million less political and advocacy spending. Excluding political and advocacy spending, normalized ad-supported streaming gross revenue decreased modestly by 2% year-over-year, despite a campaign-specific shift in spend by an existing customer to Sabio’s new digital out-of-home offering.Mobile gross revenues7 were $3.5 million, compared with $3.6 million in the prior-year quarter. Excluding political and advocacy spending, mobile gross revenues increased 32% year-over-year, driven by the Company’s new digital out-of-home offering, which began generating revenue during Q2 2026.Adjusted EBITDA2 was a loss of $2.7 million compared with a loss of $1.2 million in Q2 2025, primarily reflecting approximately $2.5 million less higher-margin political and advocacy revenue. Sequentially, the Adjusted EBITDA loss narrowed from $3.4 million in Q1 2026, while Adjusted EBITDA margin3 improved approximately 14 percentage points.IFRS net loss was approximately $3.9 million in Q2 2026, compared with approximately $1.4 million in the prior-year quarter.

Business Highlights

Strategic Diversification Driving Growth

EMEA and App Science® AI-driven U.S. Programmatic revenues represented 49% of consolidated gross sales, compared with approximately 10% a year earlier.Sabio’s App Science®-driven U.S. Programmatic offering, launched in January 2025, generated $2.9 million in Q2 2026, up approximately 247% year-over-year from $0.8 million, while EMEA revenue increased 386% year-over-year.Sabio began testing AI automation functions for its demand-side platform (DSP) during Q2 as part of the continued development of its App Science®-driven U.S. Programmatic offering.Sabio began monetizing its new digital out-of-home (DOOH) offering during the quarter, further expanding the Company’s ability to serve existing customers across multiple advertising channels.Cost-reduction initiatives are expected to generate approximately $1.2 million in net savings within the year and more than $2 million in annualized savings once fully implemented.

Creator Economy Expansion

Creator TV®, Sabio’s newly incubated streaming network, launched its first creator-led advertising spot with a health insurance organization, marking another step in Sabio’s expansion of creator-led brand solutions.Creator TV Sports™, a studio label of Creator TV®, launched the Creator Pickleball Tour at VidCon Anaheim from June 25-27, 2026. The 16-player tournament featured creators with a combined social following of approximately 794 million and will be distributed as an episodic series in Q3 2026 across Creator TV®’s FAST network, which reaches approximately 149 million potential viewers across Vizio, TCL tv+, Xumo Play, Sling Freestream, Amazon Fire TV Channels, Plex and Anoki’s LiveTVx, based on the Company’s aggregation of available household and subscriber figures separately reported by each platform.

Expanding and Retaining Customer Base

U.S. Programmatic customers increased 116% year-over-year.Approximately 90% of U.S. Programmatic customers renewed from Q1 into Q2, while 79% of repeat U.S. Programmatic customers from the prior year increased their spend in Q2.Globally (US and EMEA), 35% of customer logos in Q2 2026 were new, representing 46 new logos and a 77% year-over-year from the prior year.In EMEA, 54% of customer logos in Q2 2026 were new, representing a 343% year-over-year increase.Reoccurring revenues6 represented approximately 82% of revenues overall and 92% in the U.S., supporting increased revenue visibility and predictability.Sabio continued to expand relationships with leading global brands across a diversified group of advertiser verticals.

Political and Advocacy Momentum Building

Sabio has secured more than $5 million in political and advocacy commitments for the second half of 2026.Political and advocacy spending is historically concentrated in the second half of U.S. election years and has historically contributed to margin expansion.Political advertising placements are generally prepaid, providing additional cash flow visibility as U.S. midterm election spending accelerates.On August 5, 2026, the Company, through its wholly-owned subsidiary Sabio London Limited, secured a non-dilutive US$1.5 million term loan facility with an arm’s-length private credit provider to support working capital needs, including securing higher-margin direct supply ahead of the political season. The facility has a nine-month term, bears interest at 25% per annum generally paid in kind, and is secured by certain assets of Sabio London Limited. No securities of the Company will be issued in connection with it. The facility was fully advanced on August 13, 2026, following satisfaction of all applicable conditions precedent and acceptance by the TSX Venture Exchange. The facility is supported by a limited-recourse guarantee provided by Aziz Rahimtoola, the Company’s Chief Executive Officer, capped at US$2.0 million. As Mr. Rahimtoola is a related party of the Company, the guarantee constitutes a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on the exemptions from the formal valuation and minority shareholder approval requirements contained in sections 5.5(a) and 5.7(1)(a), respectively, of MI 61-101, as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the guarantee is expected to exceed 25% of the Company’s market capitalization.

Business Outlook

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

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

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

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

Conference Call

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

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

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

Selected Financials

(All figures in US$ unless otherwise noted)

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

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

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

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

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

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

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

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

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

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

Forward-Looking Statements

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

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

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

For further information:
Sajid Premji, Chief Financial Officer, investor@sabio.inc, Phone: 1.844.974.2662; Sam Wang, Investor Relations, investor@sabio.inc

View original content:https://www.prnewswire.com/news-releases/sabio-announces-second-quarter-2026-results-302855704.html

SOURCE Sabio Inc.