Baylin Announces Financial Results for the Third Quarter of 2025

• Adjusted EBITDA⁽²⁾ of $0.6 million in Q3 2025, the seventh consecutive quarter of positive Adjusted EBITDA.
• Net debt of $11.4 million at September 30, 2025, a reduction of $2.9 million from December 31, 2024.

Investor Conference Call on November 6, 2025 at 10:00 a.m. ET

TORONTO, Nov. 5, 2025 /CNW/ - Baylin Technologies Inc. (TSX: BYL) (OTCQB: BYLTF) (the "Company" or "Baylin"), a diversified global wireless technology company focused on the research, design, development, manufacturing, and sales of passive and active radio frequency and satellite communications products, and the provision of supporting services, today announced its financial results for the three and nine months ended September 30, 2025. All amounts are stated in Canadian dollars unless otherwise indicated.

THIRD QUARTER SUMMARY

• Revenue of $16.8 million compared to $20.7 million in the third quarter of 2024, due primarily to lower demand in the Embedded Antenna and Satcom business lines, partially offset by strong sales volume increase in the Wireless Infrastructure business line.
• Gross profit of $7.3 million compared to $9.5 million in the prior year period, mainly due to the decrease in revenue in the Embedded Antenna and Satcom business lines.
• Gross margin of 43.4% compared to 46.1% in the third quarter of 2024. Gross margin in the third quarter of 2025 reflected lower sales and gross margin in the Satcom business line, offset in part by stronger sales and gross margin in the multibeam, small cell and other innovative antennas of the Wireless Infrastructure business line.
• Adjusted EBITDA of $0.6 million in the third quarter of 2025, a decrease of $0.3 million compared to the third quarter of 2024. The change in gross profit (as discussed above) was largely offset by a reduction in operating expenses compared to the prior year period.
• Net loss of $1.1 million compared to $1.4 million in the third quarter of 2024, due mainly to an operating loss of $0.3 million along with interest and other finance expenses. On a per share basis, a net loss of $0.01 per share in the third quarter of 2025, which remained consistent with the prior year period.
• Net debt⁽³⁾ of $11.4 million at September 30, 2025, a reduction of $2.9 million from December 31, 2024, primarily attributable to cash generated by operating activities in the nine months ended September 30, 2025.
• Backlog⁽⁴⁾ of $22.6 million at September 30, 2025 compared to $22.9 million at June 30, 2025. The change reflected a slowdown in order intake mainly in the Satcom business line during the third quarter of 2025. Backlog was $23.2 million at October 31, 2025.

SELECTED FINANCIAL INFORMATION

The table below discloses selected financial information for the periods indicated.

(in $000's except per share amounts)
	Three Months Ended September 30,					Nine Months Ended September 30,
	2025		2024	Change	Change	2025	2024	Change	Change
	$		$	$	%	$	$	$	%
Profit and Loss
Revenue	16,754		20,709	(3,955)	(19.1 %)	58,076	62,797	(4,721)	(7.5 %)
Gross profit	7,274		9,542	(2,268)	(23.8 %)	25,682	26,502	(820)	(3.1 %)
Gross margin	43.4 %		46.1 %	(2.7 pp)	(5.9 %)	44.2 %	42.2 %	2.0 pp	4.7 %
Net loss from continuing operations	(1,100)		(1,414)	314	(22.2 %)	(2,142)	(3,518)	1,376	(39.1 %)
Net loss from discontinued operations	-		(857)	857	(100.0 %)	-	(3,100)	3,100	(100.0 %)
Net loss	(1,100)		(2,271)	1,171	(51.6 %)	(2,142)	(6,618)	4,476	(67.6 %)
Basic and diluted net loss per share from continuing operations	($0.01)		($0.01)	$0.00	0.0 %	($0.01)	($0.03)	$0.02	(66.7 %)
Basic and diluted net loss per share from discontinued operations	-		($0.01)	$0.01	(100.0 %)	-	($0.02)	$0.02	(100.0 %)
Basic and diluted net loss per share	($0.01)		($0.02)	$0.01	(50.0 %)	($0.01)	($0.05)	$0.04	(80.0 %)
EBITDA from continuing operations	249		1,109	(860)	(77.5 %)	2,060	1,952	108	5.5 %
EBITDA from discontinued operations	-		(659)	659	(100.0 %)	-	(958)	958	(100.0 %)
EBITDA^(1)	249		450	(201)	(44.7 %)	2,060	994	1,066	> 100.0%
Adjusted EBITDA from continuing operations	586		857	(271)	(31.6 %)	4,695	3,590	1,105	30.8 %
Adjusted EBITDA from discontinued operations	-		(659)	659	(100.0 %)	-	(1,282)	1,282	(100.0 %)
Adjusted EBITDA^(2)	586		198	388	> 100.0%	4,695	2,308	2,387	> 100.0%
	As at		As at			As at	As at
	September 30, 2025		September 30, 2024	Change	Change	September 30, 2025	December 31, 2024	Change	Change
	$		$	$	%	$	$	$	%
Balance Sheet and Other
Current assets - Continuing operations	33,399		36,478	(3,079)	(8.4 %)	33,399	37,292	(3,893)	(10.4 %)
Current assets - Assets held for sale	-		7,069	(7,069)	(100.0 %)	-	-	-	N/A
Total current assets	33,399		43,547	(10,148)	(23.3 %)	33,399	37,292	(3,893)	(10.4 %)
Total assets	44,243		58,454	(14,211)	(24.3 %)	44,243	49,166	(4,923)	(10.0 %)
Current liabilities - Continuing operations	38,433		41,769	(3,336)	(8.0 %)	38,433	44,375	(5,942)	(13.4 %)
Current liabilities - Liabilities related to assets held for sale	-		8,999	(8,999)	(100.0 %)	-	-	-	N/A
Total current liabilities	38,433		50,768	(12,335)	(24.3 %)	38,433	44,375	(5,942)	(13.4 %)
Total liabilities	54,098		63,796	(9,698)	(15.2 %)	54,098	57,689	(3,591)	(6.2 %)
Net debt^(3) from continuing operations	11,364		15,034	(3,670)	(24.4 %)	11,364	14,271	(2,907)	(20.4 %)
Backlog^(4) from continuing operations	22,645		30,227	(7,582)	(25.1 %)	22,645	30,195	(7,550)	(25.0 %)

(1)	See "Non-IFRS Measures". "EBITDA" refers to net income (loss) plus interest and other finance (income) expense, tax expense (recovery), depreciation, and amortization.
(2)	See "Non-IFRS Measures". "Adjusted EBITDA" refers to EBITDA adjusted for the impact of certain items, including asset impairment charges, expenses related to mergers and acquisitions, gain or loss on the sale of a business, including related expenses, costs of reorganization of a business, legal costs arising from significant non-operating activities, severance and executive recruitment costs, and share-based compensation.
(3)	See "Non-IFRS Measures". "Net debt" refers to total bank indebtedness less cash and cash equivalents.
(4)	See "Non-IFRS Measures". "Backlog" refers to the value of unfulfilled purchase orders placed by customers.

A copy of the Company's unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2025 and corresponding management's discussion and analysis (the "MD&A") are available under the Company's profile on SEDAR+ at www.sedarplus.ca.

RECENT DEVELOPMENTS

Litigation Settlement

The Company settled a claim brought by the former shareholders of Alga Microwave Inc. ("Alga") alleging that they were entitled to a payment of $1 million on the termination of a former employee of Alga. For further details, see Note 8 to the Interim Financial Statements for the three and nine months ended September 30, 2025.

Private Placement

In September 2025, the Company completed a private placement to its controlling shareholder, 2385796 Ontario Inc. of 90,000 Redeemable Retractable Series B Preferred Shares for proceeds of $2.25 million. The proceeds were used to satisfy an order of the Superior Court of Justice (Ontario) requiring the Company to return funds to an escrow agent appointed in connection with the Company's acquisition of Advantech Wireless in January 2018 in the amount of $1.8 million, together with accrued interest.

Harold Wolkin

In August 2025, the Company announced the passing of Mr. Wolkin, a highly respected and original member of the Board of Directors since 2013.

OUTLOOK

Corporate

The Company experienced a softer third quarter of 2025, resulting in lower revenue, gross profit and Adjusted EBITDA compared to the first two quarters, but nevertheless achieved its seventh consecutive quarter of positive Adjusted EBITDA. The macroeconomic environment remains a challenge, with continuing uncertainty over the impact of US tariffs and retaliatory tariffs from countries subject to US tariffs, changes in customer purchasing behaviour driven by uncertainty over tariffs, as well as the overall level of inflation and interest rates. In addition to the effect on inflation, tariffs could also affect foreign exchange rates and disrupt supply chains on which the Company relies in producing its products.

Based on our current assessment of each business unit, we expect the fourth quarter of 2025 will be similarly challenging, with the continuing strength of the Wireless Infrastructure business line being offset by softness in the Embedded Antenna and Satcom business lines. Despite these challenges, we remain committed to our core principles: clear market driven strategies, containing costs, prioritizing research and development, and focusing on both revenue growth and gross margin improvement. We expect to see improvements in the first quarter of 2026 mainly driven by: (i) sales volume increases from new and existing customers in the Embedded Antenna business line; (ii) continuing strength in sales and gross margin in the Wireless Infrastructure business line; and, (iii) leaner operations and improved cost structure in the Satcom business line.

Wireless Infrastructure Business Line

The Wireless Infrastructure business line continued to deliver strong financial results in the third quarter of 2025. There were substantial increases in revenue, gross profit and Adjusted EBITDA compared to the third quarter of 2024. We expect demand for its multibeam and innovative small cell antennas, as well as stadium deployments, will continue to be strong in the future, albeit with seasonally affected lower sales expected in the fourth quarter of 2025 compared to each of the first three quarters. We are continuing to leverage the competitive advantages that our multibeam antennas provide in order to open up additional global opportunities and drive further sales with wireless carriers and third-party operators who operate wireless mobile networks for their customers. The Wireless Infrastructure business line is in the process of commercializing a new derivative of its patented multibeam antenna and has several carriers asking for a trial later in 2025. We anticipate Wireless Infrastructure revenue for 2025 will exceed 2024, resulting in a full-year financial performance better than 2024, which was a very strong year.

Embedded Antenna Business Line

The Embedded Antenna business line delivered softer revenue in the third quarter of 2025 compared to the prior year period. This was due largely to changes in customer demand as a result of market fluctuations and global economic uncertainty. At the same time, the Embedded Antenna business line still managed to improve gross margins and operational efficiency, resulting in stronger Adjusted EBITDA compared to the third quarter of 2024. While order intake remains stable, we anticipate the remainder of 2025 will be affected by lower order flow-through from potential customer delays and uncertainty from the effect of tariffs. Based on our current assessment, we expect Embedded Antenna will perform at reasonable levels in the fourth quarter of 2025, but full-year revenue of 2025 will be lower than 2024. The number of active bids for new projects remains at a strong level.

Satcom Business Line

The Satcom business line had a challenging third quarter of 2025, with lower revenue, gross profit and Adjusted EBITDA compared to the prior year period. In large part, this is due to reduced orders, as well as a delayed shipment to a US Defense contractor at their request. We expect additional orders from the US Department of War for Satcom's power amplifiers, but those orders are now not expected until sometime in the first half of 2026, with further orders coming over this multi-year upgrade program. While orders of Satcom's new Genesis and Summit III model amplifiers can be produced quickly, orders for several legacy products which have yet to be retired will take longer to produce. Overall, we anticipate Satcom will end 2025 with lower revenue, gross profit and Adjusted EBITDA compared to 2024. As a result, we expect to continue to take measures to better align Satcom's cost structure with its reduced production volume and order flow consistent with those previously taken in the second and third quarters of 2025.

Satcom is generally not subject to US tariffs. See "Tariffs" below.

Tariffs

The Company continues to take proactive steps to monitor and mitigate the effect of US tariffs across all its business lines.

Wireless Infrastructure's products are manufactured in our facility in China or third-party facilities in Vietnam. The actual gross margin impact of tariffs on this business line has been mitigated to a level much lower than the applicable tariff due to a number of measures taken by the Company. This has allowed Wireless Infrastructure to be compliant with the current tariff regime while maintaining a strong margin position.

Embedded Antenna is currently not directly affected by US tariffs on China. This has been our experience with the previous US tariffs levied on imports from China starting in 2018. Although Embedded Antenna's products are manufactured in our facility in China, they are shipped from there to contract manufacturers elsewhere in Asia for embedding in the final products of those contract manufacturers.

In the case of Satcom, most of its products are produced in Canada, of which a significant proportion - between 40% and 50% annually - is delivered to customers in the United States. Satcom's products are compliant with Canada's free trade agreement with the United States and Mexico and, therefore, are not subject to the tariffs otherwise applicable on Canadian goods.

INVESTOR CONFERENCE CALL

Baylin will hold a conference call on Thursday, November 6, 2025 at 10:00 a.m. (ET) to discuss its financial results for the three and nine months ended September 30, 2025. The conference call will be hosted by Leighton Carroll, Chief Executive Officer, and Cliff Gary, Chief Financial Officer. All interested parties are invited to participate using the dial-in details provided below.

Date:	November 6, 2025
Time:	10:00 a.m. (ET)
Dial-in Number:	([phone] or ([phone]
Conference ID#:	41353
Rapid Connect:	To instantly join the conference call by phone, please use the following URL to easily register and be connected into the conference call automatically: https://emportal.ink/4bVN3iO
Webcast:	This call is also on webcast and can be accessed at: https://app.webinar.net/492zrnyQZaR

FORWARD-LOOKING INFORMATION AND STATEMENTS

This press release includes forward-looking information and forward-looking statements (together, "forward-looking statements") within the meaning of applicable securities laws. Forward-looking statements are not statements of historical fact. Rather, forward-looking statements are disclosure regarding conditions, developments, events or financial performance that we expect or anticipate may or will occur in the future including, among other things, information or statements concerning our objectives and strategies to achieve those objectives, statements with respect to management's beliefs, estimates, intentions and plans, and statements concerning anticipated future circumstances, events, expectations, operations, performance or results. Forward-looking statements can be identified generally by the use of forward-looking terminology, such as "anticipate", "believe", "could", "should", "would", "estimate", "expect", "forecast", "indicate", "intend", "likely", "may", "outlook", "plan", "potential", "project", "seek", "target", "trend" or "will" or the negative or other variations of these words or other comparable words or phrases and is intended to identify forward-looking statements, although not all forward-looking statements contain these words.

The forward-looking statements in this press release include statements concerning the outlook for our business generally and each of our business lines in particular, including our expectation for future financial performance, the effect of the macroeconomic environment, higher interest rates, timing of and potential impacts from US tariffs and retaliatory tariffs from countries subject to US tariffs, and other disruptions to our business and financial performance. Forward-looking statements are based on certain assumptions and estimates made by us in light of the experience and perception of historical trends, current conditions, expected future developments, including projected growth in the sales of passive and active radio frequency and satellite communications products, and supporting services, and other factors we believe are appropriate and reasonable in the circumstances, but there can be no assurance that such assumptions and estimates will prove to be correct.

Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including the risk factors discussed in the Company's most recent Annual Information Form, which is available under the Company's profile on SEDAR+ at www.sedarplus.ca. All the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors in this press release. There can be no assurance that the actual results or developments will be realized or, even if substantially realized, will have the expected consequences to, or effects on, the Company. Unless required by applicable securities law, the Company does not intend and does not assume any obligation to update any forward-looking statements.

NON-IFRS MEASURES

This press release includes a number of measures that are not recognized under International Financial Reporting Standards ("IFRS"), do not have any standardized meaning under IFRS and as such may not be comparable to similar measures presented by other companies. Management believes that these measures provide useful information to analysts, investors and other interested parties regarding the Company's financial condition and results of operation as they provide additional key metrics of the Company's performance. While management believes that non-IFRS measures provide useful supplemental information, they are not intended to represent, and should not be considered as alternatives to, net income (loss), cash flows generated by operating, investing or financing activities, or other financial statement data presented in accordance with IFRS. For further information, see "Non-IFRS Measures" on page 3 of the MD&A.

ABOUT BAYLIN

Baylin Technologies Inc. is a diversified global wireless technology company focused on the research, design, development, manufacturing, and sales of passive and active radio frequency and satellite communications products, and the provision of supporting services.

SOURCE Baylin Technologies Inc.

For further information, please visit www.baylintech.com.