INTOUCH INSIGHT ANNOUNCES Q2 2026 FINANCIAL RESULTS

OTTAWA, ON, Aug. 26, 2026 /CNW/ -- Intouch Insight Ltd. (TSXV: INX) (OTCQX: INXSF) ("Intouch" or the "Company"), a provider of customer experience measurement solutions, today announced its financial results for the second quarter ended June 30, 2026.

Financial Highlights

Highlights from the three months ended June 30, 2026, compared to the same period in 2025:

• Revenue is 8% higher than the prior year. This increase was due to organic growth in SaaS, merchandising and recurring services revenue.
• Gross margin as a percentage of revenue was 46.7%, compared to 50.4% in the comparative period. This decrease is due to the mix of product sales, coupled with growth of some of our most competitively priced programs.
• Earnings from operations were $54,361 compared to a loss of $1,021,120 for Q2 2025. The loss in the prior year is due to the impairment of goodwill and intangibles from the loss of a client obtained through acquisition.
• SaaS revenue increased 18% to $474,999, recurring services revenue increased 6% to $5,879,676, and event marketing automation revenue increased 8% to $572,560.
• Merchandising revenue was $82,824, compared to nil in the prior year period.
• Net loss was $43,136, or $0.00 per share basic and diluted, compared to a net loss of $1,112,023, or $0.04 per share basic and diluted, in Q2 2025.
• Adjusted EBITDA, a non-IFRS measure, was $227,559 compared to $370,812 in Q2 2025; a reconciliation to the most directly comparable IFRS measure is contained in the Company's MD&A for the period, which is available on SEDAR+ and is incorporated by reference.

Adjusted EBITDA is a non-IFRS financial measure, which is defined as net earnings (loss) before income taxes, adjusted to exclude finance costs, depreciation and amortization, impairment charges, share-based compensation, investment tax credits, and the change in the fair value of contingent consideration.

Highlights from the six months ended June 30, 2026, compared to the same period in 2025:

• Revenue is 7% higher than the prior year. This increase was due to growth in SaaS, merchandising and recurring services revenue.
• Gross margin as a percentage of revenue was 48.1%, compared to 50.4% in the comparative period. This decrease is due to the product mix.
• Earnings from operations were $237,896 compared to a loss of $649,769 for 2025. The loss in the prior year is due to the impairment of goodwill and intangibles.
• Merchandising revenue was $120,291, compared to nil in the prior year period.
• Net income was $64,169, or $0.00 per share basic and diluted, compared to a net loss of $899,421, or $0.04 per share basic and diluted, in the first half of 2025.

Recent Operational Highlights

• Presented the Company's annual convenience industry study during the main stage general session at the Outlook Leadership Conference, hosted by Informa, and announced the top-performing convenience operator award in partnership with CSP Daily News. This year's study encompassed close to 3,000 site visits across 14 leading convenience brands.
• Advanced the Company's entry into the grocery vertical, including proprietary grocery research produced in partnership with Informa Connect and NexChapter, which the Company presented during the general session at the GroceryNEXT conference in Chicago on August 24-26, 2026.
• Published two proprietary thought leadership studies, the 2026 Emerging Experiences Study on mobile order ahead and the 2026 C-store Trends Report, both of which heighten the Company's industry profile.
• Advanced through the qualification stages of a previously disclosed seven-figure SaaS RFP within the Company's core QSR vertical and is one of the remaining finalists.
• Secured a second merchandising customer and added contracted merchandising work that is expected to support a significant sequential increase in merchandising revenue in the third quarter of 2026.

Management Commentary

Cameron Watt, President & Chief Executive Officer of Intouch Insight, commented:

"The second quarter delivered exactly what we said it would. Revenue grew 8% to $7,015,784, our strongest quarterly growth rate in seven quarters, with growth across each of our major product lines, and we did it while continuing to fund the investments that we committed to at the start of the year. We told the market we would invest into growth without diluting shareholders, and we have not issued a single share to do it. We intend to fund these investments from cash generated by operations and our existing credit facilities, and we do not anticipate that an equity financing will be required."

Watt added:

"Our goal to double the business by the end of 2028 remains our focus and our 2026 expectations are unchanged: double-digit organic revenue growth by year end, more than $1 million of merchandising revenue, and continued investment in our strategy, which may result in an operating loss. Merchandising has been slower off the line than we wanted, but the shape of the year is intact. Based on contracts signed to date, we expect third quarter merchandising revenue on its own to exceed the combined revenue of the first half.  We are continuing to pursue our stated strategy and remain optimistic in achieving our goals."

Q2 Earnings Conference Call Information

To participate in this event, register and log-in approximately 5 to 10 minutes before the beginning of the call.

Date: August 27, 2026 
Time: 10:30 a.m. eastern time

Register for the live webcast and access on-demand recording: click here. https://events.zoom.us/ev/ApEXp4MTIT3r7mdIyMnepiOj0JWWQZz-8QK_9Gn0AtLGAC-R-pYn~Anj41TOs5ON_y0VBbXslnvdVEyaq_Dsmqwga9gdn5FSs1jbXHdNT1B07Hw  

Consolidated Statements of Operations
				Q2 2026			Q2 2025
Revenue				$   7,015,784			$   6,503,539
Cost of services				3,740,310			3,225,447
Gross margin				3,275,474			3,278,092
Total operating expenses				3,221,113			4,299,212
Income from operating activities				54,361			(1,021,120)
Non-operating (expenses) income				(97,284)			(82,423)
Income tax recovery (expense)				(213)			(8,480)
Net income (loss)				$       (43,136)			$  (1,112,023)

About Intouch Insight

Intouch Insight offers a complete portfolio of customer experience management (CEM) products and services that help global brands delight their customers, strengthen brand reputation and improve financial performance. Intouch helps clients collect and centralize data from multiple customer touch points, gives them actionable, real-time insights, and provides them with the tools to continuously improve customer experience. Founded in 1992, Intouch is trusted by over 300 of North America's most-loved brands for their customer experience management, customer survey, mystery shopping, mobile forms, operational and compliance audits, geolocation data capture and event marketing automation solutions. For more information, visit intouchinsight.com.

Certain statements included in this news release including those related to the Company's quarterly results, future products, opportunities and cost initiatives, strategies, and other statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, are forward-looking statements within the meaning of applicable Canadian securities laws.  Forward looking statements that are made as of the date hereof, which by their nature are necessarily subject to risks and uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the Company's current views with respect to future events, and are based on information currently available to the Company and on hypotheses which it considers to be reasonable; however, management cautions the reader that hypotheses relative to future events which are beyond the control of management could prove to be false, given that they are subject to certain risks and uncertainties. Please refer to the risks set forth in the Company's most recent annual MD&A and the Company's continuous disclosure documents that can be found on SEDAR+ at www.sedarplus.ca. The Company does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Intouch Insight Ltd.

For further information, please contact: Cathy Smith, Chief Financial Officer, [email protected], 613-270-7916; James Carbonara, Hayden IR, [email protected]