Adcore Reports Third Quarter 2026 Results: Gross Margin Rises to 64%, Operating Loss Halved, Cash Up to $4.3 Million as Restructuring Takes Hold
Key Highlights
- ➤Gross margin rose to 64% from 40% year over year on $5.8 million revenue
- ➤Operating loss narrowed 54% quarter over quarter to $263,000
- ➤Cash reached $4.3 million with positive $0.9 million operating cash flow
- ➤Q4 operating profit targeted at approximately $500,000 to $700,000
- ➤North America revenue increased 27% year over year to $1.3 million
Expert Statements
Omri Brill, CEO and Founder of Adcore
“Q3 is the first quarter where you can start to see the effect of the restructuring we described on October 21. Gross margin went from 40% to 64% in a year. We generated cash from operations. Cash went up, not down, in a quarter where we started to pay for a restructuring. And the operating loss was cut in half from Q2 - with only a few weeks of the new cost base in the numbers”
Omri Brill, CEO and Founder of Adcore
“Revenue was lower, and I want to be direct about why. We made a strategic decision to focus on higher-margin revenue and let lower-margin business go, even though it was adding to the top line. The numbers show that it was the right call: cost of revenue fell by more than half, and gross profit went up while revenue went down. We are running a smaller top line that earns more. That is the trade we chose, and we would make it again.”
Omri Brill, CEO and Founder of Adcore
“The balance sheet tells the same story. We ended the quarter with $4.3 million in cash and no debt; trade payables fell from $8.4 million at year-end to $4.6 million, and operating cash flow turned positive as the working-capital build-up from the first half unwound. Operating expenses ran at roughly $1.3 million a month in Q3; the restructuring takes that to roughly $0.9 million by year-end.”
Omri Brill, CEO and Founder of Adcore
“Q4 is the first quarter with nearly the full new cost base in the numbers, and we expect it to be the first operating profit this company has reported since Q4 2025. From there, the plan has not changed: a lean, profitable, cash-generating operating business, external capital for the AI products, and a return of capital to shareholders as results allow.”
TORONTO, ON / ACCESS Newswire / November 10, 2026 / Adcore Inc. ("Adcore" or the "Company") (TSX:ADCO)(OTCQX:ADCOF)(FSE:ADQ), a global marketing-technology company operating an AI-powered Marketing Cloud, today announced financial results for the three months ended September 30, 2026.
The third quarter is starting to show the early effect of the company-wide restructuring announced on October 21, 2026. The restructuring began in September 2026 and was substantially complete by October 2026, thus Q3 reflects only a partial-quarter benefit; the fourth quarter of 2026 is anticipated to demonstrate a significantly greater impact from the updated cost structure, with the full effect from the first quarter of 2027 onwards.
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