Victory Square Technologies Reports Fiscal 2025 Results Highlighting Platform Scaling, Healthcare Infrastructure Growth and Portfolio Momentum

Hydreight delivers record growth and profitability, VSDHOne scales nationally, and Victory Square advances its strategy of building, scaling, and monetizing platform-driven businesses across healthcare, AI, and emerging technologies.

VANCOUVER, BC, May 1, 2026 /CNW/ - Victory Square Technologies Inc. (CSE: VST) (FSE: 6F6) (OTC Pink: VSQTF) ("Victory Square" or the "Company"), a venture builder focused on healthcare infrastructure, digital health, artificial intelligence, and emerging technology platforms, today reported its audited financial results for the year ended December 31, 2025 and provided a corporate update across its portfolio.

Fiscal 2025 marked a transition year for Victory Square, highlighted by strong performance from Hydreight Technologies Inc., continued expansion of the VSDHOne healthcare platform, and progress across key portfolio companies including Insu Therapeutics Inc., and Pawsible Ventures Inc.

The Company's audited financial statements and Management Discussion & Analysis ("MD&A") are available on SEDAR+.

Management Commentary

"2025 was a year of continued execution across our portfolio," said Shafin Diamond Tejani, Chairman and CEO of Victory Square.

"For years, we've been building infrastructure in complex, high-value markets. In 2025, we began to see that infrastructure translate into real scale -- revenue growth, profitability, and increasing visibility into what these platforms can become."

"What matters to us is not any single product or trend. It's whether we are building systems that can scale. Hydreight demonstrated that in 2025. Across the portfolio, we are beginning to see the same pattern emerge."

Fiscal 2025 Financial Highlights

• Revenue: $35.4M
• Adjusted Revenue (non-GAAP): $43.56M
• Cash & Marketable Securities: $22.0M
• Working capital: $15.0M

Victory Square's consolidated financial results are primarily driven by Hydreight Technologies Inc., the Company's flagship digital health subsidiary.

Operating Performance

Victory Square's financial results in fiscal 2025 were primarily driven by the continued growth of Hydreight Technologies Inc.

Revenue increased to approximately $35.4 million for the year ended December 31, 2025, compared to approximately $16.04 million in 2024, reflecting significant growth in Hydreight's user base and platform activity.

Cost of goods sold increased in line with revenue growth, driven primarily by higher pharmacy fulfillment volumes as transaction activity scaled.

Gross margin improved to approximately $9.0 million in 2025, compared to approximately $6.4 million in 2024.

Total expenses declined to approximately $9.3 million in 2025, compared to approximately $16.5 million in 2024, reflecting improved cost discipline, operational efficiencies, and the impact of prior-year restructuring and deconsolidation activities.

Operating Leverage

Operating leverage improved during fiscal 2025, with operating expenses declining as a percentage of revenue from approximately 38% in 2024 to approximately 22% in 2025.

This reflects the scalability of Hydreight's platform model, where a largely fixed cost structure supported increasing transaction volumes.

As utilization increased, incremental revenue was generated with comparatively lower incremental cost, resulting in improved margins and overall operating efficiency.

The Company's improved cost structure and increasing platform utilization provide a stronger foundation to support continued scaling of its core operations.

Hydreight: The Core Proof Point

Hydreight Technologies Inc. (TSXV: NURS) is Victory Square's largest operating subsidiary and the primary driver of the Company's consolidated financial performance. As at December 31, 2025, Victory Square held a 51.03% ownership interest in Hydreight and consolidates its financial results, which are reflected in the Company's reported revenue and operating performance.

Hydreight delivered record results for fiscal 2025:

• Revenue: $35.4M vs. $16.04M (+121% YoY)
• Adjusted Revenue:⁽¹⁾ $43.56M vs. $22.32M (+95% YoY)
• Adjusted EBITDA:⁽²⁾ $2.5M vs. $136K (+1,765% YoY)
• Rising Operating Leverage: OPEX as a % of revenue fell from 38% to 22%
• 2025 Year-end Cash Position: $15.65M vs. $1.19M (strong balance sheet improvement)
• Positive Adjusted EBITDA² across the year, reflecting improving operating leverage
• Over 11,000 licenses signed across the VSDHOne platform, which the Company believes demonstrates strong demand and accelerating adoption

Growth was driven by the rollout and scaling of VSDHOne, Hydreight's infrastructure platform enabling compliant healthcare delivery across multiple verticals including GLP-1 therapies, peptides, hormone optimization, diagnostics, and wellness programs.

Hydreight operates a national digital healthcare platform that enables compliant patient access, prescribing, and fulfillment across all 50 U.S. states.

Its performance reflects a transition from early-stage platform development to a scaled healthcare infrastructure business, where growth is increasingly driven by platform utilization rather than initial build-out.

Forward Visibility

Hydreight has publicly disclosed fiscal 2026 revenue guidance of approximately $150 million, based on existing partner activity and currently visible demand.

Hydreight has indicated that incremental growth is expected to be supported largely by its existing infrastructure.

Victory Square cautions that this guidance is based on Hydreight's public disclosure and is subject to risks and uncertainties.

Valuation Context

Taken together, Hydreight's growth, improving operating leverage, and publicly disclosed forward visibility provide additional context for understanding the scaling characteristics of the Company's core operating platform.

VSDHOne: Infrastructure at Scale

VSDHOne provides:

• Telehealth infrastructure
• Compliance frameworks
• Physician networks
• Pharmacy fulfillment
• Direct-to-consumer enablement

The platform allows healthcare brands, clinics, and operators to launch compliant services across all 50 U.S. states.

Management views VSDHOne as a core infrastructure platform designed to support multiple operators and healthcare offerings within a single compliant framework.

Hydreight + Insu: Rails + Next-Generation Payload

Together, Hydreight and Insu represent two complementary layers of the same opportunity.

Hydreight provides the rails -- the national infrastructure for compliant patient access, prescribing, and fulfillment.

Insu represents the next-generation payload -- a proprietary delivery platform designed to improve how peptide-based therapies are administered.

Peptide-based therapies, including GLP-1s such as semaglutide, have experienced significant growth in recent years, driven by increasing demand for treatments related to metabolic health and chronic conditions.

Delivery methods remain an important consideration for peptide-based therapies, particularly with respect to administration, storage, and patient accessibility.

Insu is developing a buccal delivery system designed to:

• Enable transmucosal absorption
• Avoid gastrointestinal degradation
• Bypass first-pass metabolism
• Improve patient accessibility and convenience

Importantly, Insu's intellectual property is centered on the delivery mechanism, not a single molecule -- creating potential applicability across multiple peptide therapies.

By participating in both the infrastructure and innovation layers, Victory Square provides exposure to:

• The scaling of healthcare delivery
• The evolution of how therapies may be delivered

Pawsible Ventures: Extending the Model

Pawsible Ventures continues executing on its strategy to build a platform for the next generation of pet health companies.

In 2026, Pawsible launched:

• A $10M venture fund
• A venture studio
• A Pet Health Incubator
• A global advisory board

The platform targets veterinary diagnostics, digital care, therapeutics, AI tools, and preventative wellness.

Management believes pet health represents a natural extension of Victory Square's infrastructure model.

Monetization in Action

Dividend of Yocale.ai Shares

Further to the press release of the Company dated April 20, 2026, the Company confirms that it dividended an aggregate of 1,100,008 Class A common shares in the capital of Yocale.ai Inc. to the shareholders of record of the Company as of the close of business on April 24, 2026.

This reflects the Company's capital allocation model:

Build the rails.
Scale the platform.
Monetize with discipline.
Repeat.

A Message to Shareholders

Victory Square was established to provide public market investors with access to early-stage and growth-stage technology companies through a liquid, transparent structure.

The Company's model combines venture-style investing with operational involvement and capital markets execution.

In 2025, the Company continued to focus on developing infrastructure within its core sectors, including digital health, artificial intelligence, and platform-based technologies.

Hydreight's financial performance during the year reflects increased platform utilization, revenue growth, and improved operating efficiency.

The Company also progressed other areas of its portfolio, including:

• Advancing Yocale.ai toward public market readiness and shareholder distribution
• Expanding Pawsible Ventures' platform in the pet health sector
• Supporting the continued development of Insu Therapeutics

Victory Square's approach is based on supporting portfolio companies through development, scaling, and, where appropriate, monetization events.

The Company recognizes that investments may progress at different rates and that outcomes may vary across the portfolio.

Management remains focused on:

• Supporting high-conviction investments
• Allocating capital in a disciplined manner
• Increasing Net Asset Value over time

The Company will continue to provide updates as these developments progress.

Outlook

Victory Square continues to focus on long-term value creation through its venture-building model.

The Company is currently operating at a stage where:

• Infrastructure has been established across key platforms
• Portfolio companies are progressing through scaling phases
• Financial performance is becoming more visible in certain segments

Strategic Priorities

Victory Square intends to:

• Continue scaling its digital health platforms
• Support Hydreight's ongoing growth and operations
• Advance Insu Therapeutics' development programs
• Expand Pawsible Ventures' platform and ecosystem
• Execute monetization opportunities where appropriate
• Maintain disciplined capital allocation

"Markets will continue to move through cycles," said Tejani.

"Our focus remains on building systems that can scale. If we continue to execute with discipline, we believe the results will follow -- even if the market takes time to fully recognize them."

On behalf of the Board of Directors,

Shafin Diamond Tejani
Chairman & CEO
Victory Square Technologies Inc.
www.victorysquare.com

ABOUT VICTORY SQUARE TECHNOLOGIES INC.
Victory Square Technologies Inc. is a publicly traded venture builder focused on scaling companies operating in large, structurally growing markets - with a primary emphasis on healthcare infrastructure, applied AI, immersive technologies, and next-generation digital platforms.

Unlike traditional venture capital funds, Victory Square provides public market investors with liquid access to early-stage innovation without requiring accredited investor status or long-term capital lock-ups.

The Company maintains a diversified portfolio of 20+ operating and development-stage companies across sectors including:

• Digital Health & Healthcare Infrastructure
• Artificial Intelligence (AI) & Machine Learning
• Blockchain / Web3 Infrastructure
• Virtual & Augmented Reality (VR/AR)
• Gaming & Immersive Technologies
• Climate Technology
• Pet Health & Wellness

Victory Square operates as an active venture builder - not a passive investor. Management works directly with portfolio companies from incubation through scale, providing capital, strategic oversight, regulatory guidance, operational support, and structured pathways to monetization, including spin-outs and public listings where appropriate.

The Company's model is centered on:

• Building defensible infrastructure in fragmented markets
• Supporting founders through multi-year scale cycles
• Recycling capital into new high-growth opportunities
• Aligning management ownership with shareholders (approximately 15% insider ownership)

Victory Square is headquartered in Vancouver, Canada, and is listed on the Canadian Securities Exchange (VST), the Frankfurt Exchange (6F6), and the OTC Pink Market (VSQTF).

For more information, please visit www.victorysquare.com.

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws.

Forward-looking information may be identified by words such as "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions.

Forward-looking information in this news release includes, without limitation, statements relating to:

• The Company's strategy and business model
• Portfolio company development and performance
• Platform scaling and utilization
• Capital allocation and monetization initiatives
• Hydreight's publicly disclosed guidance and outlook
• The anticipated benefits of VSDHOne and other platform-based offerings
• Development timelines and regulatory pathways for Insu Therapeutics
• Expansion initiatives across Pawsible Ventures and other portfolio companies

Forward-looking information is based on management's current expectations, estimates, assumptions, and beliefs as of the date of this release, including assumptions regarding:

• Continued partner adoption and transaction volumes
• Stability of regulatory frameworks in applicable jurisdictions
• Availability of capital
• Portfolio company execution
• General economic and market conditions

Forward-looking information relating to Hydreight, including revenue guidance and margin expectations, is based on information publicly disclosed by Hydreight and reflects Hydreight management's expectations regarding partner activity, service mix, and operational capacity.

Actual results may differ materially from those anticipated due to a number of factors, including, without limitation:

• Changes in regulatory requirements
• Execution risk at the portfolio company level
• Variability in transaction volumes or partner performance
• Revenue recognition and audit outcomes
• Capital markets conditions
• Clinical development risks
• General economic and industry conditions

There can be no assurance that forward-looking information will prove to be accurate, and readers are cautioned not to place undue reliance on such information.

Except as required by applicable law, the Company does not undertake any obligation to update forward-looking information.

Use of Non-GAAP Financial Measures

This news release references certain non-GAAP financial measures used by the Company and its portfolio companies, including "Adjusted Revenue" and "Adjusted EBITDA."

These measures do not have standardized meanings prescribed by International Financial Reporting Standards ("IFRS") and may not be comparable to similar measures used by other issuers.

For Victory Square, non-GAAP measures are used to provide additional insight into operating performance, portfolio activity, and the scale of underlying platform economics.

For Hydreight Technologies Inc. ("Hydreight"), which is consolidated within the Company's financial results, non-GAAP financial measures are defined and reported by Hydreight in its public disclosure, including its audited financial statements and MD&A.

As disclosed by Hydreight:

• Adjusted Revenue reflects gross economic activity processed through the platform and may differ materially from revenue recognized under IFRS due to revenue recognition and deferral requirements.
• Adjusted EBITDA is defined as net income (loss) before interest, taxes, depreciation and amortization, and before certain non-recurring or non-operating items, including transaction costs, share-based compensation, and other adjustments as disclosed in Hydreight's filings.

These measures are provided for informational purposes only and should not be considered in isolation or as substitutes for financial measures prepared in accordance with IFRS.

Readers are encouraged to review Hydreight's public filings on SEDAR+ for full definitions, reconciliations, and related disclosures regarding its non-GAAP financial measures.

In addition, revenue recognition for certain platform-based offerings, including those facilitated through the VSDHOne infrastructure, may involve management judgment and auditor review, and may result in differences between reported IFRS revenue and gross processing volumes or cash receipts during a given period.

Notes:

1. "Adjusted Revenue" is a non-GAAP financial measure, and the figures reflect gross economic activity processed through the Company's platform and should not be considered revenue recognized under IFRS. See "Non-GAAP Financial Measures" section below for definition.
2. "Adjusted EBITDA" is a non-GAAP financial measure and reflects EBITDA plus additions for atypical and non-recurring charges. See "Non-GAAP Financial Measures" section below for definition.

SOURCE Victory Square Technologies Inc

For further information about Victory Square, please contact: Investor Relations - Abbey Vogt, Email: [email protected]; Peter Smyrniotis - Director, Email: [email protected], 604-428-7050