Renoworks Announces Second Quarter 2025 Financial Results and Provides Outlook

Continued revenue growth, strong gross margins, and fifth consecutive quarter of profitability underscore strong performance

CALGARY, AB, Aug. 6, 2025 /CNW/ - Renoworks Software Inc. (TSXV: RW) ("Renoworks" or the "Company), an industry leader in visualization and lead generation technology for the home renovation and new construction sector, announces its second quarter 2025 results for the three months ended June 30, 2025. The financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR+ at www.sedarplus.ca. Unless otherwise stated, all dollar amounts are Canadian dollars.

Financial highlights for the six months to June 30, 2025 ("H1 2025") with comparatives for the six months to June 30, 2024 ("H1 2024") are as follows:

• H1 2025 revenues of $4,012,815, a 21% increase from H1 2024's $3,315,181.
• Recurring revenue of $1,761,011 in H1 2025 versus $1,299,529 for H1 2024, a 36% increase.
• Gross margin of 76% in H1 2025 versus 74% in H1 2024.
• Net profit of $92,829 in H1 2025 compared to a net loss of $112,694 for H1 2024, an improvement attributed primarily to the rise in licensing and hosting revenue of 36%.
• Deferred Revenue of $2,403,043 at June 30, 2025 compared to $2,519,797 at December 31, 2024.
• Cash at June 30, 2025 was $1,496,861, a decrease of $39,810 from $1,536,671 at the end of fiscal 2024. 
• The Company's working capital at June 30, 2025 was a positive $30,029 compared to a negative working capital of $121,451 for the fiscal year ended December 31, 2024, an increase of $151,480 primarily due to an increase in trade and other receivables balances. Excluding deferred revenue, a significant non-cash item included in working capital, the Company's working capital at June 30, 2025 is positive $2,216,550 ($2,157,879 – December 31, 2024).
• As at June 30, 2025, the Company had 40,701,301 common shares issued and outstanding.

Financial highlights for the three months ended June 30, 2025 ("Q2 2025") with comparatives for the three months ended June 30, 2024 ("Q2 2024") are as follows:

• Q2 2025 revenue of $2,164,834 versus $1,835,791 in Q2 2024, an 18% increase.
• Recurring revenue of $881,284 in Q2 2025 versus $682,891 in Q2 2024, a 29% increase.
• Gross margins continue to be strong at 76% and 73%, respectively for Q2 2025 and Q2 2024.
• Net income of $25,737 for Q2 2025 compared to $13,059 in Q2 2024.

H1 2025 revenue rose to $4.01 million, a 21% increase over H1 2024. Recurring revenue grew 36% year-over-year, reaching $1.76 million. The Company posted a net profit of $92,829 for H1 2025, compared to a net loss of $112,694 in H1 2024. Adjusted EBITDA also turned positive, with $144,447 recorded in H1 2025 and $60,298 in Q2 2025.

Revenue for Q2 2025 reached $2.16 million, an 18% increase compared to $1.84 million in Q2 2024. This growth was fueled by a 29% year-over-year increase in recurring revenue, which totaled $881,284 for the quarter. Gross margins in Q2 2025 remained strong at 76%, compared to 73% in Q2 2024, highlighting the scalability of Renoworks' SaaS and services-based model.

Cash remained stable at $1.5 million, while working capital improved to $30,029 from negative $121,457 at year-end 2024. Excluding deferred revenue, working capital stood at $2.2 million, reflecting growth in customer receivables and a stronger financial position.

"These results reflect the strong foundation we've built over the past year and the growing demand for visualization, data and automation in the home improvement space," said Doug Vickerson, CEO of Renoworks. "With investments in AI, lead generation, and our enterprise and pro platform now bearing fruit, we're focused on accelerating recurring revenue growth and delivering even greater value to our customers. We see a significant opportunity to grow our annual recurring revenue through the launch of new features to existing clients, expansion of our contractor-focused solutions, and onboarding of new enterprise and pro customers."

Renoworks continues to scale its platform capabilities through new AI-powered features and enhanced homeowner engagement tools. Initiatives such as Renoworks Pro are gaining momentum, positioning the Company to further capitalize on digital transformation trends across the remodel and building products industry.

Financial results from H1 2025 operations with comparatives for H1 2024 are as follows:

	Six Months Ended June 30
	2025	2024
Revenue	$4,012,815	$3,315,181
Gross Profit	$3,030,271	$2,441,480
Expenses	$2,985,868	$2,615,723
Net Income (Loss)	$92,829	($112,694)
Income (Loss) per share	$0.00	($0.00)
Adjusted EBITDA	$144,447	($75,601)
Weighted Average Shares Outstanding	40,674,032	40,664,635
Cash increase (decrease) from operations	($44,244)	$450,997

Financial results from operations for Q2 2025 with comparatives for Q2 2024 are as follows:

	Three Months Ended June 30
	2025	2024
Revenue	$2,164,834	$1,835,791
Gross Profit	$1,644,174	$1,333,463
Expenses	$1,535,700	$1,320,012
Net Profit	$25,737	$13,059
Income per share	$0.00	$0.00
Adjusted EBITDA	$60,298	$31,634
Weighted Average Shares Outstanding	40,697,602	40,664,635

The Company's financial position as of June 30, 2025 and December 31, 2024 is as follows:

	June 30, 2025	December 31, 2024
Cash Balance	$1,496,861	$1,536,671
Accounts Receivable	$719,452	$547,746
Working Capital	$30,029	($121,457)
Deferred Revenue	$2,403,043	$2,519,797
Long- term liabilities	$216,522	$240,467
Shareholder's Equity (Deficiency)	$149,859	($4,362)
Deficit	($10,006,900)	($10,099,729)
Total Assets	$2,750,564	$2,641,419

About Renoworks

Renoworks Software Inc. develops and sells unique digital visualization software and integration solutions for the remodeling and new home construction industry. Renoworks delivers its technology to manufacturers, contractors, builders, and retailers offering solutions to one of the home improvement industry's greatest challenges: enabling homeowners to review their product selections in a hyper-realistic, virtual environment before committing to purchases and construction. Renoworks markets its technologies as an innovative engagement, sales, and marketing platform and generates revenues from five main business lines: Renoworks Enterprise, Renoworks PRO, Renoworks Design Services, Renoworks FastTrack, and Renoworks API (Application Programming Interface). For more information, visit www.renoworks.com and www.renoworkspro.com.

*Non-IFRS Measures

Adjusted EBITDA is a measure not recognized under IFRS. However, management of Renoworks believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons.

Adjusted EBITDA does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Renoworks' Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Renoworks posted on SEDAR+ (www.sedarplus.ca).

Forward Looking Information

Certain statements in this news release, other than statements of historical fact, are forward looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the Company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE RenoWorks Software Inc.

For further information on Renoworks, please contact: Doug Vickerson, CEO, Phone: [phone], E-mail: [email protected]; Sean Peasgood, Investor Relations, Phone: [phone], E-mail: [email protected]