The DLC Group Announces Solid First Quarter 2026 Results with 7% Increase in Revenue; Funded Mortgage Volumes of $16.4 Billion

About this update from Dominion Lending Centres, Inc. (canada) Class A

Vancouver, British Columbia--(Newsfile Corp. - May 7, 2026) - Dominion Lending Centres Inc. (TSX: DLCG) (the "DLC Group" or the "Corporation") today announced financial results for the three months ended March 31, 2026 ("Q1 2026"). The DLC Group is one of Canada's leading franchisors of mortgage professionals, with a national network of over 8,500 agents. The Corporation also owns Newton Connectivity Systems Inc., a financial technology company that provides an integrated end-to-end operating platform, Velocity, designed to automate and streamline the entire mortgage application, approval, underwriting and funding process. Financial Highlights for Q1 2026: "I'm pleased to report that DLC Group generated solid first quarter results despite a difficult comparison quarter and a slow start to the quarter due to winter weather," said Gary Mauris, Co-Founder and CEO of the DLC Group. "In the first quarter, we achieved 7% revenue growth with Adjusted EBITDA margins expanding to 44%, and Adjusted EBITDA growing 9% year-over-year." "In January, we celebrated our 20th anniversary. While we are proud of what we've achieved over the past two decades, our focus remains firmly on the future through continuing to invest in our franchise and broker partners to support their long-term success," continued Mr. Mauris. "Over the past year, our brokers have benefited from the momentum of our Gold Rush initiative, which has driven increased customer engagement and stronger mortgage origination growth. Building on this, in 2026 we launched Goal Getter, a 12-week sales program that I personally lead, working directly with approximately 600 of our brokers to equip them with new techniques to expand their customer base, improve win rates, and grow their businesses. Our sustained investment in the success of our franchise and broker partners has been a cornerstone of our performance over the past 20 years and continues to support our growth today." "While we remain mindful of the economic uncertainty, we maintain our positive outlook for 2026 and confidence in our ability to deliver long-term profitable growth, supported by our leading broker and technology platform, disciplined capital allocation, and strong balance sheet," concluded Mr. Mauris. First Quarter 2026 Financial Summary   (1) Please see the Non-IFRS Financial Performance Measures section of this document for additional information. (2) Adjusted EBITDA and Adjusted EBITDA margin includes a loss from our equity-accounted investment in Heartwood of $0.3 million for the three months ended March 31, 2026 (March 31, 2025 - $0.3 million). Key Performance Indicators ("KPIs")   (1) Funded mortgage volumes are presented in billions and are a key performance indicator that allows us to measure performance against our operating strategy. (2) The number of franchises and brokers are as at the respective period end date (not in thousands). (3) Representing the percentage of the DLC Group's funded mortgage volumes that were submitted through Velocity. First Quarter 2026 Financial Review The DLC Group generated solid results in the first quarter of 2026 with a 7% increase in revenues compared to Q1 2025 and 9% growth in Adjusted EBITDA. The Corporation delivered consistent funded mortgage volumes in Q1 2026 despite a strong comparable quarter in Q1 2025 (in which funded mortgage volumes increased 46% over Q1 2024), heightened winter storm activity early in the quarter and a muted residential sales market. The increase in adoption of Velocity, strength in the mortgage renewal market, and expansion in our broker network were the primary drivers of the growth in revenue. Conference Call & Webcast The Corporation will hold a conference call at 4:00pm Mountain Time (6:00pm Eastern Time) on Thursday, May 7, 2026 to discuss these results. To participate in the conference call, please dial 1-800-715-9871 or 1-647-932-3411 (International) at least 5 minutes prior to the call. This conference call will also be webcast live and can be accessed by all interested parties at the following URL: https://www.gowebcasting.com/14667 . A webcast replay will also be available within 24 hours following the call on The DLC Group's website at www.dlcg.ca , in the Investors section. Reconciliation of Non-IFRS Financial Measures Management presents certain non-IFRS financial performance measures which we use as supplemental indicators of our operating performance. These non-IFRS measures do not have any standardized meaning and therefore are unlikely to be comparable to the calculation of similar measures used by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. Non-IFRS measures are defined and reconciled to the most directly comparable IFRS Accounting Standards measure. Non-IFRS financial performance measures include adjusted EBITDA, adjusted net income, adjusted earnings per share, and free cash flow. Please see the Non-IFRS Financial Performance Measures section of the Corporation's MD&A dated May 7, 2026 for further information on key performance indicators. The Corporation's MD&A is available on SEDAR+ at www.sedarplus.ca . ADJUSTED EBITDA Adjusted EBITDA is defined as earnings before finance expense, taxes, depreciation, amortization, and any unusual, non-operating, certain non-cash, or one-time items. The Corporation considers its main operating activities to be the business of mortgage brokerage franchising and mortgage broker data connectivity services across Canada, and management of its operating subsidiaries. Adjusted EBITDA margin is defined as adjusted EBITDA divided by revenue. The non-cash adjustments are expenses incurred during the period which are not the result of the main operating activities of the Corporation or are related to the financing of these activities. Other expenses are unusual, non-cash, or one-time insignificant items included within "other (expense) income" on the consolidated statements of income that are not related to the main operating activities. While adjusted EBITDA is not a recognized measure under IFRS Accounting Standards, management believes that it is a useful supplemental measure as it provides management and investors with an insightful indication of the performance of the Corporation. Adjusted EBITDA is an assessment of its normalized results and cash generated by its main operating activities, prior to the consideration of how these activities are financed or taxed, as a facilitator for valuation and a proxy for cashflow. Management applies adjusted EBITDA in its operational decision making as an indication of the financial performance of its main operating activities. Investors should be cautioned, however, that adjusted EBITDA should not be construed as an alternative to a statement of cash flows as a measure of liquidity and cash flows. The methodologies we use to determine adjusted EBITDA may differ from those utilized by other issuers or companies and, accordingly, adjusted EBITDA as used in this document may not be comparable to similar measures used by other issuers or companies. Readers are cautioned that adjusted EBITDA should not be construed as an alternative to net income determined in accordance with IFRS Accounting Standards as an indicator of an issuer's performance or to cash flows from operating, investing, and financing activities as measures of liquidity and cash flows. The following table reconciles adjusted EBITDA from income before income tax, which is the most directly-comparable measure calculated in accordance with IFRS Accounting Standards:   (1) Other expense for the three months ended March 31, 2026 relates to a loss on disposal of an intangible asset. Other expense for the three months ended March 31, 2025, relates to foreign exchange loss and a loss on contract settlement. (2) Amortization of franchise rights and relationships of $1.4 million for the three months ended March 31, 2026 (March 31, 2025 - $1.3 million) is classified as a charge against revenue and has not been added back for adjusted EBITDA. FREE CASH FLOW Free cash flow represents how much cash a business generates after spending what is required to maintain or expand its current asset base. Free cash flow attributable to common shareholders represents the cash available to the Corporation for general corporate purposes, including: repayments on our credit facilities, investment in growth capital expenditures, return of capital to common shareholders through the repurchases of Common Shares and discretionary payment of dividends to common shareholders, and cash to be retained by the company. This is a useful measure that allows management and users to understand the cash available to enhance shareholder value. The other adjustments are expenses incurred during the period which are not the result of the main operating activities of the Corporation, or are related to the financing of these activities. Other one-time items included within other expense adjustments are insignificant items included within "other (expense) income" on the condensed consolidated statements of income that are not related to the main operating activities. While free cash flow is not a recognized measure under IFRS Accounting Standards, management believes that it is a useful supplemental measure as it provides management and investors with an insightful indication of the funds generated by the main operating activities that are available to the Corporation for use in non-operating activities. Free cash flow is determined by adjusting certain investing and financing activities. Investors should be cautioned, however, that free cash flow should not be construed as an alternative to a statement of cash flows as a measure of liquidity and cash flows. The methodologies we use to determine free cash flow may differ from those utilized by other issuers or companies and, accordingly, free cash flow as used in this document may not be comparable to similar measures used by other issuers or companies. Readers are cautioned that free cash flow should not be construed as an alternative to net income determined in accordance with IFRS Accounting Standards as indicators of an issuer's performance, or to cash flows from operating, investing, and financing activities as measures of liquidity and cash flows. The following table reconciles free cash flow from cash flow from operating activities, which is the most directly-comparable measure calculated in accordance with IFRS Accounting Standards:   (1) Other non-cash items for the three months ended March 31, 2026, relates to a loss on disposal of an intangible asset. The three months ended March 31, 2025, represents a foreign exchange loss and promissory note income. ADJUSTED NET INCOME AND ADJUSTED EPS Adjusted net income and Adjusted EPS are defined as net income before any unusual or non-operating items such as foreign exchange, fair value adjustments, and one-time non-recurring items. Other one-time items included within other expense adjustments are insignificant items included within "other (expense) income" on the condensed consolidated statements of income that are not related to the main operating activities. While adjusted net income is not a recognized measure under IFRS Accounting Standards, management believes that it is a useful supplemental measure as it provides management and investors with an insightful indication of the operational performance of the Corporation by eliminating certain non-recurring items. Management applies adjusted net income in its operational decision making as an indication of the results and cash generated by the main operating activities, after consideration of how these activities are financed and taxed. Adjusted net income is used to determine adjusted EPS (defined as adjusted net income attributable to common shareholders on a per-share basis). Investors should be cautioned, however, that adjusted net income should not be construed as an alternative to net income determined in accordance with IFRS Accounting Standards as an indicator of an issuer's performance or to cash flows from operating, investing, and financing activities as a measure of liquidity and cash flows. The methodologies we use to determine adjusted net income may differ from those utilized by other issuers or companies and, accordingly, adjusted net income as used in this document may not be comparable to similar measures used by other issuers or companies. The following table reconciles adjusted net income from net income, which is the most directly-comparable measure calculated in accordance with IFRS Accounting Standards:   (1) Other expense for the three months ended March 31, 2026 relates to a loss on disposal of an intangible asset. Other expense for the three months ended March 31, 2025 relates to a foreign exchange loss and a loss on contract settlement. Forward-Looking Information Certain statements in this document constitute forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate," "believe," "estimate," "will," "expect," "plan," or similar words suggesting future outcomes or outlooks. Forward-looking information in this document includes, but is not limited to, our sustained investment in the success of our franchise and broker partners will continue to support our performance in today's subdued housing market, our positive outlook for 2026 and confidence in our ability to generate long-term profitable growth, supported by our leading broker and technology platform, disciplined capital allocation, and strong balance sheet. Such forward-looking information is based on many estimates and assumptions, including material estimates and assumptions, related to the following factors below that, while considered reasonable by the Corporation as at the date of this press release considering management's experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: Many of these uncertainties and contingencies may affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made in this document are qualified by these cautionary statements. The foregoing list of risks is not exhaustive. The forward-looking information contained in this document is made as of the date hereof and, except as required by applicable securities laws, we undertake no obligation to update publicly or revise any forward-looking statements or information, whether because of new information, future events or otherwise. About Dominion Lending Centres Inc. Dominion Lending Centres Inc. is Canada's leading network of mortgage professionals. The DLC Group operates through Dominion Lending Centres Inc. and its three main subsidiaries, MCC Mortgage Centre Canada Inc., MA Mortgage Architects Inc. and Newton Connectivity Systems Inc., and has operations across Canada. The DLC Group's extensive network includes over 8,500 agents and over 500 locations. Headquartered in British Columbia, DLC was founded in 2006 by Gary Mauris and Chris Kayat. The DLC Group can be found on X (Twitter), Facebook and Instagram and LinkedIn @DLCGmortgage and on the web at www.dlcg.ca . Contact information for the Corporation is as follows:   To view the source version of this press release, please visit https://www.newsfilecorp.com/release/296542

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