Overview

• The US ad-tech firm's Q1 revenue fell yr/yr as political and advocacy spend declined

• Adjusted EBITDA loss widened from prior year, reflecting shift in higher-margin revenue to later quarters

• Company implemented $2.3 mln in annualized cost reductions year-to-date

Outlook

• Sabio says gross revenues are tracking more than 35% higher sequentially entering Q2 2026

• Company expects continued growth throughout 2026 and anticipates a record revenue year

• Sabio sees election-related demand contributing to margin expansion and improved cash flow visibility

Result Drivers

• POLITICAL & ADVOCACY SPEND SHIFT - Co said Q1 revenue decline was mainly due to lower political and advocacy spending, which is expected to be higher in the second half of the yr

• INTERNATIONAL & PROGRAMMATIC GROWTH - International and programmatic revenues each grew nearly 13x yr/yr, now representing 62% of Q1 revenue mix

• PRICING STRATEGY IMPACT - Gross margin was 53%, reflecting aggressive pricing in January to drive adoption of programmatic and international offerings, with margins improving throughout the quarter

Company press release: ID:nCNW8Jkg6a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$8.20 mln	$8.85 mln (2 Analysts)
Q1 Adjusted EBITDA		-$3.40 mln	-$650,000 (2 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• Wall Street's median 12-month price target for Sabio Holdings Inc is C$0.50, about 127.3% above its May 25 closing price of C$0.22

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 17 three months ago

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