par Route1 Inc. (CVE:ROI)
Route1 Announces Business Updates and Its Financial Results for the Three and Nine Months Ended September 30, 2025
TORONTO, ONTARIO / ACCESS Newswire / November 20, 2025 / Route1 Inc. (TSXV:ROI) ("Route1" or the "Company"), a leading engineering and professional services firm specializing in the deployment and integration of advanced data capture-based technologies, and actionable business intelligence ("ABI") to city, state, and federal first responder departments, public safety and parking managers, today provided important business updates and reported its financial results for the three- and nine-month periods ended September 30, 2025.
Q3-25 operating results commentary:
Launched Route1 ABI.
Grew quarterly ALPR support contract revenue beyond USD $300,000 per quarter, annualized recurring revenue of USD $1.2 million.
Quarterly growth in ALPR end users, average ALPR support contract value and introduction of Route1 ABI.
Monetized employee retention credits for USD $226,000 and USD $471,000 year to date.
Strong working capital improvement for the second consecutive quarter, the Company's working capital deficiency has improved by $817,000 over the last six months and $419,000 in the third quarter alone.
For the second consecutive quarter, the total bank indebtedness and notes payable balance decreased; in aggregate, bank indebtedness was reduced by $202,000 over the last two quarters.
Q3 2025 FINANCIAL RESULTS
Statement of operations In 000s of CAD dollars | Q32025 | Q22025 | Q12025 | Q42024 | Q32024 | |||||||||||||||
Revenue | ||||||||||||||||||||
Subscription and services | $ | 1,203 | $ | 1,465 | $ | 1,327 | $ | 1,130 | $ | 1,417 | ||||||||||
Devices and appliances | 1,759 | 2,233 | 906 | 2,804 | 2,301 | |||||||||||||||
Other | (7 | ) | (8 | ) | - | (3 | ) | (12 | ) | |||||||||||
Total revenue | 2,954 | 3,691 | 2,234 | 3,931 | 3,706 | |||||||||||||||
Cost of revenue | 1,775 | 2,343 | 1,324 | 2,542 | 2,376 | |||||||||||||||
Gross profit | 1,179 | 1,348 | 910 | 1,389 | 1,331 | |||||||||||||||
Operating expenses | 1,136 | 1,274 | 1,306 | 1,464 | 1,418 | |||||||||||||||
Operating profit 1 | 43 | 74 | (395 | ) | (75 | ) | (87 | ) | ||||||||||||
Total other expenses (income) 2 | (209 | ) | 135 | 181 | 226 | 196 | ||||||||||||||
Net income (loss) | $ | 252 | $ | (61 | ) | $ | (214 | ) | $ | (301 | ) | $ | (283 | ) |
1 Before stock-based compensation. The last quarter of stock-based compensation expenses was Q4-24.
2 Includes gain or loss on asset disposal, stock-based compensation expense, gain on sale of employee retention credits, interest expense, income tax recovery, foreign exchange loss or gain, other expenses.
Adjusted EBITDA 3 In thousands of Canadian dollars | Q32025 | Q22025 | Q12025 | Q42024 | Q32024 | |||||||||||||||
Adjusted EBITDA | $ | 220 | $ | 269 | $ | (190 | ) | $ | 130 | $ | 147 | |||||||||
Depreciation and amortization | 176 | 195 | 205 | 205 | 234 | |||||||||||||||
Operating profit | $ | 43 | $ | 74 | $ | (395 | ) | $ | (75 | ) | $ | (87 | ) |
3 Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, stock-based compensation, and other costs. Adjusted EBITDA does not have any standardized meaning prescribed under IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. Adjusted EBITDA allows Route1 to compare its operating performance over time on a consistent basis.
Subscription and services revenue in 000s of CAD dollars | Q32025 | Q22025 | Q12025 | Q42024 | Q32024 | |||||||||||||||
Application software | $ | 14 | $ | 15 | $ | 17 | $ | 24 | $ | 37 | ||||||||||
Other services | 1,189 | 1,451 | 890 | 1,106 | 1,380 | |||||||||||||||
Total | $ | 1,203 | $ | 1,466 | $ | 907 | $ | 1,130 | $ | 1,417 |
Other services revenue in 000s of CAD dollars | Q32025 | Q22025 | Q12025 | Q42024 | Q32024 | |||||||||||||||
Technology life-cycle maintenance and support 4 | $ | 413 | $ | 412 | $ | 381 | $ | 378 | $ | 370 | ||||||||||
Professional services | 776 | 1,039 | 526 | 727 | 1,010 | |||||||||||||||
Total | $ | 1,189 | $ | 1,451 | $ | 907 | $ | 1,106 | $ | 1,380 |
4 Route1 ABI license revenue is included in this line
In 000s of CAD dollars | Sep 30 2025 | Jun 30 2025 | Mar 31 2025 | Dec 31 2024 | ||||||||||||
Working capital analysis | ||||||||||||||||
Total current assets | $ | 2,913 | $ | 3,116 | $ | 1,939 | $ | 3,422 | ||||||||
Current liabilities: | ||||||||||||||||
Accounts payable and accruals | 3,637 | 4,260 | 3,480 | 4,683 | ||||||||||||
Contract liabilities (deferred revenue) | 1,189 | 922 | 917 | 995 | ||||||||||||
Operating lease liabilities (property leases) | 317 | 301 | 320 | 335 | ||||||||||||
Bank indebtedness and notes payable | 2,454 | 1,652 | 1,601 | 1,561 | ||||||||||||
Total current liabilities | 7,597 | 7,136 | 6,317 | 7,573 | ||||||||||||
Net working capital | (4,684 | ) | (4,020 | ) | (4,378 | ) | (4,151 | ) | ||||||||
Pro Forma net working capital 5 | $ | (724 | ) | $ | (1,143 | ) | $ | (1,541 | ) | $ | (1,261 | ) | ||||
Debt analysis | ||||||||||||||||
Current bank indebtedness and notes payable | $ | 2,454 | $ | 1,652 | $ | 1,601 | $ | 1,561 | ||||||||