Tiny Reports Q3 2026 Results

• Total revenue of $52.3 million, a decrease of 3% year-over-year or 5% on a constant currency^[1] basis, with organic revenue¹ remaining flat

• Recurring revenue¹ of $17.2 million, a 2% increase year-over-year, representing 33% of total revenue

• Annualized recurring revenue¹ ("ARR") of $68.9 million, a 2% increase year-over-year

• Adjusted EBITDA¹ of $13.2 million, a 30% increase year-over-year, representing a 25% margin¹

• Acquired Oso Cloud after quarter-end, adding $5.3 million in ARR¹ and bringing Tiny's pro forma ARR¹ to $75.0 million.

Victoria, British Columbia--(Newsfile Corp. - November 5, 2026) - Tiny Ltd.  (TSX: TINY) ("Tiny" or the "Company"), a holding company that acquires wonderful businesses for the long term, announced the financial results for the three and nine months ended September 30, 2026 ("Q3 2026") today. Currency amounts are expressed in Canadian dollars unless otherwise noted.

Portfolio Company Highlights

• Metalab delivered its strongest revenue quarter since 2022, with revenue up 25% from Q2. Engagements with marquee clients including Alo, Intuit, Questrade, ServiceNow, Yahoo and Tommy John supported the quarter.

• Serato launched DJ for iOS in October, bringing its DJ software to iPhone and iPad with support for more than 120 controllers and mixers. The mobile format expands Serato's addressable market, creating a new entry point for DJs and giving existing users greater flexibility in how and where they perform.

• Letterboxd surpassed 33 million members at quarter-end, an increase of 42% year-over-year and more than tripling since its acquisition by Tiny Fund I in 2023. This growth reinforces Letterboxd's position as a leading social network for film discovery and discussion.

• Completed the acquisition of Oso Cloud for ~$1.9 million in cash consideration on October 1, 2026, expanding Tiny's enterprise software presence with approximately $5.3 million in ARR. The acquisition brings Tiny's pro forma ARR¹ to approximately $75.0 million.

• Tiny's ~$330k seed investment in Poolside now has an implied value of ~$15.8 million based on reported NVIDIA financing terms.

• WeCommerce and Creative Platform continue to face revenue pressure, weighing on consolidated revenue growth. Both businesses remain focused on profitability while navigating a challenging environment.

Q3 2026 Operational & Financial Overview

• Total revenue was $52.3 million, down 3% year-over-year or 5% on a constant currency basis¹. The reported decline largely reflected the disposals of WeWorkRemotely and Z1. Adjusting for those disposals, organic revenue¹ was broadly flat, as growth in Digital Services and Serato largely offset continued revenue pressure at WeCommerce and Creative Platform.

• Recurring revenue¹ increased 2% to $17.2 million and now represents 33% of total revenue, up from 31% a year ago, reflecting Tiny's continued shift toward higher-quality, recurring revenue. ARR¹ was $69.6 million. Including the Oso Cloud acquisition completed after quarter-end, illustrative pro forma ARR¹ was approximately $75.0 million, an increase of approximately 8%.

• Adjusted EBITDA¹ increased 24% to $13.2 million from Q2 2026, representing a 25% margin and reflecting improved profitability despite revenue pressure in parts of the group.

• Net debt to Adjusted EBITDA¹ improved to 2.3x from 2.8x at the end of Q2. Tiny repaid $2.5 million of debt during the quarter.

• Net loss narrowed to $2.5 million, from $83.0 million in Q2 2026. Q2 included $80.7 million of non-cash impairments at WeCommerce and Creative Market, along with portfolio review, restructuring, and executive transition costs.

Management Commentary

"Our work to make Tiny's businesses more focused and efficient is showing up in profitability. Adjusted EBITDA¹ increased 30% year-over-year, with a 25% margin on slightly lower revenue. We generated $8.6 million of free cash flow¹ and ended the quarter with $39.5 million of cash. Net debt to Adjusted EBITDA¹ improved to 2.3x from 2.8x at the end of Q2.

Within the group, Metalab delivered its strongest revenue quarter since 2022, while Serato continued to grow its subscription business and expanded into mobile with the October launch of Serato DJ for iOS. WeCommerce and Creative Platform continue to face revenue pressure, which we expect to remain a headwind to consolidated growth. Both businesses remain focused on profitability while navigating a challenging environment.

We are encouraged by our early progress and recognize there is still significant work ahead as we build a more resilient Tiny. AI and changing competitive conditions require us to adapt our businesses and carefully assess new acquisitions. The Oso Cloud acquisition meets that bar, expanding our presence in enterprise security software and adding recurring revenue at an attractive valuation.

We remain focused on improving operations, strengthening our balance sheet and maintaining a disciplined approach to acquisitions and selective asset monetizations," said Austin Singhera, CEO of Tiny.

• Revenue in Q3 2026 was $52.3 million, a decrease of $1.7 million or 3% (5% on a constant currency^[2] basis) compared to Q3 2025. Constant currency represents revenue growth excluding the impact of foreign exchange.

• Consolidated revenues increased $0.7 million or 1% when compared to $51.6 million in Q2 2026. Quarter to quarter growth was largely due to performance at Metalab, within Digital Services, and Serato, within Software and Apps.

• Net loss in Q3 2026 was $2.5 million compared to net income of $0.1 million in Q3 2025, a change of $2.6 million. The Company recognized a $9.0 million gain on disposal of We Work Remotely in Q3 2025, which impacted the quarterly comparison. The one-time gain was partially offset in Q3 2026 by a $4.6 million increase in earnings from operations, reflecting the impact of cost rationalization initiatives across the portfolio since May 2026.

• Organic revenue¹ decreased slightly by 0.2% compared to Q3 2025. Revenues increased at Digital Services due to new client engagements and at Serato through continued strong subscription revenue.

• Recurring revenue¹ in Q3 2026 was $17.2 million, an increase of $0.3 million or 2% compared to Q3 2025 due to subscription revenue growth at Serato, which has grown to a 71% recurring revenue base from 66% recurring revenue in Q3 2025.

• Recurring revenue %¹ increased to 33% of total revenue, compared to 31% in Q3 2025.

• EBITDA¹ was $12.7 million in Q3 2026 versus $13.5 million in Q3 2025, which included a $9.0 million gain on the sale of We Work Remotely. Excluding the effect of that gain, the improvement in earnings from operations excluding depreciation and amortization of $4.0 million and a $2.6 million change in foreign exchange drove EBITDA higher.

• Adjusted EBITDA¹ increased by 30% to $13.2 million in Q3 2026, compared to $10.1 million in Q3 2025. The growth was primarily driven by cost reductions and operational efficiencies implemented across the portfolio, particularly at WeCommerce, and higher earnings in Digital Services and Serato.

• Adjusted EBITDA¹ margin for the quarter was 25%, compared to 19% in Q3 2025.

• Segmented Adjusted EBITDA¹ by segment in Q3 2026 compared to Q3 2025:

• Digital Services was $7.2 million, an increase of $1.8 million or 34% due to new client engagements and cost reduction measures;

• Creative Platform was $0.3 million, a decrease of $0.2 million or 41%, as revenue continues to decline due to reduced traffic and AI-related disruptions providing an alternative to its services and products, partially offset by cost reductions;

• Software and Apps was $8.4 million, an increase of $1.8 million or 28%, primarily due to Serato's growth and WeCommerce's realignment of costs; and

• Other, which decreased by $0.4 million or 17% as a result of lower revenues after the divestiture of We Work Remotely.

• Total cash increased $7.9 million during the quarter to $39.5 million. Cash flow from operations in Q3 2026 was $12.4 million, down $4.8 million from $17.2 million in Q3 2025, which included $8.2 million of cash received for a licensing agreement in Q3 2025.

• Free Cash Flow¹ in Q3 2026 was $8.6 million ($0.29 per share) compared to $13.7 million in Q3 2025 ($0.47 per share).

• Total debt outstanding, excluding the Company's 11% secured convertible debentures due on May 12, 2030 (the "Convertible Debentures"), as of September 30, 2026 was $103.5 million compared to $98.7 million on December 31, 2025. As of September 30, 2026, the Convertible Debentures had a face value of $36.1 million, which refers to the principal amount owing at maturity, excluding the impact of any unamortized discount, premium, or issuance costs.

• Total debt, including the face value of the Convertible Debentures, decreased to $139.6 million as at September 30, 2026, from $142.0 million as at June 30, 2026. During the three months ended September 30, 2026, the Company repaid $2.5 million of debt. Compared to the balance of $134.8 million as at December 31, 2025, total debt increased due to $1.2 million of net drawings and $3.4 million of foreign exchange movements.

• Net debt, including the face value of Convertible Debentures, was $100.1 million at September 30, 2026 (December 31, 2025: $105.6 million), or 2.3x LTM Adjusted EBITDA¹ compared to 2.8x at year end 2025.

• Total assets on September 30, 2026 were $369.4 million compared to $465.0 million on December 31, 2025, a decrease of $95.6 million, primarily attributable to the impairment of non-financial assets in Q2 2026.

Tiny Fund Performance

• Tiny Fund I LP generated combined unaudited revenue of $19.2 million (USD$13.7 million) in Q3 2026 compared to $18.1 million (USD$13.2 million) in Q3 2025, representing growth of 6%.

• The increase was due to a strong quarter for AeroPress driven by Amazon Prime Days and supported by continued revenue growth at Letterboxd.

• The carrying amount of Tiny's investment in Tiny Fund was $46.3 million (USD$32.6 million) on September 30, 2026, an increase of $1.5 million or 3% from December 31, 2025.

• The Company received distributions of $0.5 million in Q3 2026, consistent with distributions in Q2 2026.

• Tiny holds a 21.41% interest in Tiny Fund I LP and Tiny's consolidated financial results do not include the aggregate revenues, expenses, or profits of Tiny Fund's individual investments.

Quarterly Conference Call and Business Update

The Company will hold a conference call to provide a business update on Thursday, November 5, 2026, at 11:00 a.m. ET. The call will be hosted by:

• Austin Singhera, CEO

• Mike McKenna, CFO

A question & answer session will follow the business update.

Conference Call Details

This live call is also being webcast and can be accessed by going to: https://events.q4inc.com/attendee/481793108.

Financial Statements

Tiny Ltd.'s Interim Consolidated Financial Statements and Management's Discussion and Analysis for Q3 2026 are available on SEDAR+ at www.sedarplus.com.

About Tiny

Tiny is a Canadian holding company that acquires wonderful businesses using a founder-friendly approach. It focuses on companies with unique competitive advantages, recurring or predictable revenue streams, and strong free cash flow generation. Tiny typically holds businesses for the long-term, with a parent-level focus on capital allocation, collaborative management and operations, and incentive structures within the operating companies to drive results for Tiny and its shareholders.

Tiny currently has three principal reporting segments: Digital Services, which help some of the world's top companies design, build and ship amazing digital products; Software and Apps, which is home to Serato, the world's leading DJ software, and WeCommerce, a collection of leading application and theme businesses powering global e-commerce merchants; and Creative Platform, which is composed primarily of Dribbble, the social network for designers and digital creatives, as well as Creative Market, a premier online marketplace for digital assets such as fonts, graphics and templates.

For more about Tiny, please visit www.tiny.com or refer to the public disclosure documents available under Tiny's profile on SEDAR+ at www.sedarplus.com.

Cautionary Note Regarding Forward-Looking Information

Certain statements in this press release may constitute forward-looking information or forward-looking statements (together, "forward-looking statements") that reflect management's current expectations regarding the Company's future growth, financial performance, business prospects and opportunities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate", "believe", "plan", "forecast", "expect", "estimate", "predict", "intend", "would", "could", "if", "may" and similar expressions. This press release includes, among others, forward-looking statements regarding the Company's financial profile, operational performance, Tiny's ability to integrate acquisitions, the Company's use and implementation of AI strategies, ARR, and the future plans and strategies of the Company, its portfolio companies and subsidiaries. These statements reflect current expectations of management regarding future events and speak only as of the date of this press release. In addition, forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

By their nature, forward-looking statements require management to make various assumptions and are subject to inherent risks and uncertainties. There is a significant risk that such predictions, forecasts, conclusions or projections will not prove to be accurate, that management's assumptions may not be accurate and that actual results, performance or achievements may differ significantly from such predictions, forecasts, conclusions or projections expressed or implied by such forward-looking statements. We caution readers not to place undue reliance on the forward-looking statements in this press release as a number of factors, many of which are beyond the Company's control, could cause actual future results, conditions, actions or events to differ materially from the targets, outlooks, expectations, goals, estimates or intentions expressed in the forward-looking statements. These factors include, but are not limited to: short term liabilities; the Company's working capital deficiency; the failure to integrate acquisitions; entering new markets; funding future acquisitions; the Company's dependence on positive cash flows and its ability to source new financing; the Company's ability to fund contingent consideration and scheduled debt repayment obligations as they come due; management of growth; the failure to realize expected benefits from the use of artificial intelligence ("AI"), including, without limitation, the broader impact of AI on the Company's revenue and operations; information technology and cyber security; global financial conditions; the Company's ability to maintain its obligations under its credit facilities; interest rates; foreign exchange rate fluctuations; impairment of goodwill, intangible assets and other assets; the Company's ability to enforce claims against sellers; conflicts of interest among the directors and officers of the Company; regulatory risks; foreign jurisdictions; tariffs and the volatility of trade agreements; payment processing; actual or perceived breach of data privacy and security laws; intellectual property; technological changes; internal controls, including the material weaknesses identified in the Company's internal control over financial reporting and the Company's ability to remediate them; competition within ecommerce markets; confidential information; reliance on the Shopify platform; reliance on management and key employees and consultants; resale of shares; market for securities; legal claims; tax; the requirements of being a public company; and credit exposure. For a more detailed discussion of the Company's risk factors, see the list of risk factors in the Company's Annual Information Form dated March 30, 2026 which is available on SEDAR+ at www.sedarplus.com under the Company's profile.

Forward-looking statements and information, including future-oriented financial information or financial outlook, are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied herein to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information, including, without limitation: the potential impact of the Company's acquisitions and dispositions on relationships, including with regulatory bodies, stock exchanges, lenders, service providers, employees and competitors; risks related to the successful integration of acquired businesses; credit, liquidity and additional financing risks; potential conflicts of interest; general economic conditions; industry conditions; technological advancement; political volatility; currency fluctuations; competition from other industry participants; and stock market volatility. This list is not exhaustive of the factors that may affect any of the forward-looking information contained herein.

This press release contains information pertaining to Tiny's seed investment in Poolside, which has been obtained from and based upon third-party sources. Third-party sources may state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance or guarantee as to the accuracy or completeness of included data. Although the data is believed to be reliable, neither the Company nor its agents have independently verified the accuracy, currency, reliability or completeness of any of the information from third-party sources referred to in this press release or ascertained the underlying economic assumptions relied upon by such sources. The Company disclaims any responsibility or liability whatsoever in respect of any information derived from third-party sources.

The Company cautions that the foregoing list is not exhaustive of all possible factors, as other factors could adversely affect our results. When relying on our forward-looking statements to make decisions with respect to the Company and its securities, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise indicated, the information in this press release is current as of the date of this press release and the Company does not intend, and disclaims any obligation, to update any forward-looking statements, whether written or oral, or whether as a result of new information or otherwise, except as may be required by law.

Non-IFRS Measures

This press release contains certain non-International Financial Reporting Standard ("IFRS") financial measures. These measures are not recognized measures under IFRS accounting standards as issued by the International Accounting Standards Board. These financial measures do not have standardized meanings prescribed under IFRS and our computation may differ from similarly-named computations as reported by other entities and, accordingly, may not be comparable. These financial measures should not be considered as an alternative to, or more meaningful than, measures of financial performance as determined in accordance with IFRS as an indicator of performance. The Company believes these measures may be useful supplemental information to assist investors in assessing our operational performance and our ability to generate cash through operations. The non-IFRS measures also provide investors with insight into our decision making as we use these non-IFRS measures to make financial, strategic and operating decisions. The Company's management also uses non-IFRS financial measures to facilitate operating performance comparisons from period to period and prepare annual budgets and forecasts.

Because non-IFRS measures do not have a standardized meaning and may differ from similarly-named computations as reported by other entities, securities regulations require that non-IFRS measures be clearly defined and qualified, reconciled with their nearest IFRS measure and given no more prominence than the closest IFRS measure.

Non-IFRS measures are not audited. Unless otherwise indicated, the financial information presented in this press release is prepared in accordance with IFRS accounting standards as issued by the International Accounting Standards Board. These non-IFRS measures have important limitations as analytical tools and investors are cautioned not to consider them in isolation or place undue reliance on ratios or percentages calculated using these non-IFRS measures.

The Company uses non-IFRS measures in this press release including "EBITDA", "EBITDA %", "Adjusted EBITDA", "Adjusted EBITDA %", "Segmented Adjusted EBITDA", "Segmented Adjusted EBITDA %", "net debt", "Net debt to Adjusted EBITDA", "recurring revenue", "recurring revenue %", "annualized recurring revenue" or "ARR", "pro forma ARR", "organic revenue", "constant currency", "free cash flow", and "free cash flow per share". Management uses these non-IFRS measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation.

The non-IFRS financial measures referred to in this press release are further detailed below and in the Company's management's discussion and analysis for the three and nine months ended September 30, 2026 and 2025 under the heading "Non-IFRS Measures", which is incorporated by reference herein and is available at www.tiny.com and under Tiny's profile on SEDAR+ at www.sedarplus.com.

NON-IFRS MEASURES RECONCILIATIONS

EBITDA and Adjusted EBITDA

EBITDA % and Adjusted EBITDA %

Segmented Adjusted EBITDA and Segmented Adjusted EBITDA %

Recurring Revenue, Recurring Revenue %, Annualized Revenue and Pro forma ARR

Organic Revenue

Constant Currency

Free Cash Flow and Free Cash Flow per Share

Net Debt and Net Debt to Adjusted EBITDA

^[1] Refer to Non-IFRS Measures for further information.
^[2] Refer to Non-IFRS Measures for further information.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/322590