VerticalScope Announces Third Quarter 2026 Financial Results
Key Highlights
- ➤Revenue $13.1 million, down 11% year-over-year
- ➤Adjusted EBITDA $4.8 million, with a 37% margin
- ➤Two frontier AI lab agreements signed; revenue expected beginning in Q4
- ➤Revolver balance reduced to $31.0 million from $44.0 million
- ➤Realignment expected to reduce annualized costs by approximately $4.4 million
Expert Statements
Chris Goodridge, CEO of VerticalScope
“We delivered higher profitability in Q3, driven by the strength of our enthusiast communities, disciplined cost management and consistent cash generation. Adjusted EBITDA was $4.8 million, and margins were 37%, and we reported net income for the quarter. We are also starting to see revenue gains from AI, with our new commerce experience contributing to a 29% increase in affiliate commerce revenue across our forums. As we increasingly deploy AI across our operations, we are continually adapting how we work. The realignment we began implementing in November is expected to reduce annualized costs by approximately $4.4 million and positions us to keep generating strong Free Cash Flow as we invest in AI-driven growth.”
Chris Goodridge, CEO of VerticalScope
“We are aligning our investments and resources around one priority: delivering more value to the enthusiasts at the heart of our communities, and our growing AI capabilities will accelerate that work. Our members own the vehicles, equipment and products they discuss, and the first-hand experience they share is a scarce asset that AI cannot replace. That asset will continue to drive value for our business. Frontier AI labs are recognizing it. In October, we signed our first direct commercial agreements with frontier AI labs relating to our content, which we expect to become a new source of revenue for VerticalScope beginning in Q4.”
Vince Bellissimo, CFO of VerticalScope
“We stopped deploying capital to AudienceEngine to focus our resources on engaging and monetizing our organic audience. That released the working capital the program required, and we put it towards our debt. In August, we said we expected to quickly repay the $6 million we drew to fund our AltaML investment, and we have. Since the draw, we’ve repaid $7 million, and our revolver is now at $31 million. We remain focused on strengthening our balance sheet and using AI to drive organic growth across our platform.”
VerticalScope Holdings Inc. (“VerticalScope” or the “Company”) (TSX: FORA; OTCQX: VFORF), a technology company that has built and operates a cloud-based digital platform for online enthusiast communities, today announced financial results for the third quarter ended September 30, 2026 ("Q3" or "the quarter").
“We delivered higher profitability in Q3, driven by the strength of our enthusiast communities, disciplined cost management and consistent cash generation,” said Chris Goodridge, CEO of VerticalScope. “Adjusted EBITDA was $4.8 million, and margins were 37%, and we reported net income for the quarter. We are also starting to see revenue gains from AI, with our new commerce experience contributing to a 29% increase in affiliate commerce revenue across our forums. As we increasingly deploy AI across our operations, we are continually adapting how we work. The realignment we began implementing in November is expected to reduce annualized costs by approximately $4.4 million and positions us to keep generating strong Free Cash Flow as we invest in AI-driven growth.”
Get started
Create a free account to read the full story.