AVANTE ANNOUNCES RESULTS FOR THE FIRST FISCAL QUARTER HIGHLIGHTING 25% IMPROVEMENT IN RECURRING MONTHLY REVENUE

Avante Corp. achieved 11% year-over-year revenue growth and 25% improvement in Recurring Monthly Revenue in the fiscal first quarter ended June 30, 2025.

The Company achieved Adjusted EBITDA from continuing operations of $0.36 million in the fiscal first quarter, and positive Net Income.

The Company maintains a positive outlook for fiscal 2026, driven by 126% Year-over-year increase in NSSG revenue and healthy organic growth across its services including Avante Black, Halo, Avante Verified, and WALL-E.

TORONTO, Ontario, Aug. 26, 2025 (GLOBE NEWSWIRE) -- Avante Corp. (TSX.V: XX) (OTC: ALXXF) (“Avante” or the “Company”) is pleased to announce its financial results for fiscal 2025, representing the three months ended June 30, 2025 (all amounts in Canadian dollars thousands, unless otherwise indicated).

Manny Mounouchos, Founder, Chief Executive Officer and Board Chair of Avante, commented, “The first quarter of fiscal 2026 delivered solid growth, with revenue increasing 11% year-over-year and recurring monthly revenue up 25%. This performance was driven by strength across all divisions, most notably NSSG, which delivered an exceptional 126% increase in revenue as our enhanced sales processes and operational alignment continue to bear fruit. Our results reflect the continued momentum we have built since streamlining operations, integrating recent acquisitions, and focusing on our highest-margin, tech-enabled offerings. Demand for our premium security solutions remains strong, particularly in our Avante Black and Protective Services divisions, where we continue to differentiate through elite service quality and innovation. We are energized by the growth potential of our next-generation technology platforms. WALL-E & Avante Verified, which our powered by our HALO technology, continue to gain momentum, with strong engagement from institutions seeking advanced safety & security solutions. Both offerings have a healthy pipeline of opportunities, and we are focused on converting these into meaningful deployments in the coming quarters. As we progress through fiscal 2026, we remain committed to driving disciplined growth, broadening our base of recurring revenues, and delivering innovative, tech-enabled security solutions that raise the bar for our industry.”

Raj Kapoor, Avante’s Chief Financial Officer, added, “I am pleased to announce that we achieved positive operating cash flow, Adjusted EBITDA and net income in the first quarter of fiscal 2026. Our balance sheet remains strong, as we remain bank-debt free, holding $4.7 million in cash and $12 million in available credit facilities, giving us the flexibility to execute on our growth priorities. At the same time, we are continuing to create efficiencies to reduce operating costs by implementing a new ERP system and by streamlining the Company’s operations. These improvements position us to drive sustainable growth and deliver long-term value to our shareholders.”

QUARTERLY FINANCIAL HIGHLIGHTS FOR FIRST FISCAL QUARTER ENDED JUNE 30, 2025:

Within continuing operations, the Company reported revenue of $8.75 million during the first quarter of fiscal 2026, representing year-over-year revenue growth of 11%, or $0.83 million, compared to $7.91 million for the prior fiscal year. This increase in revenue was driven by a strong performance from NSSG, which delivered year-over-year revenue growth of 126%.

Total gross profit from continuing operations increased by $0.31 million in the first quarter of fiscal 2026 compared to the same quarter in fiscal 2025. Gross profit margins within continuing operations remained relatively stable at 38% compared to 38% during the prior year’s first quarter, indicating a consistent level of profitability.

The Avante Security segment delivered recurring monthly revenues (“RMR”) of $4.06 million during the first quarter of fiscal 2026, an increase of 25% compared to the Company’s first quarter in the prior year. This growth was driven by net growth in monitoring customers and the introduction of new recurring revenue services to new and existing client bases.

The Company achieved Adjusted EBITDA from continuing operations of $0.36 million during the first quarter of fiscal 2026, compared to Adjusted EBITDA of $0.36 million for the prior fiscal year first quarter.

Avante recorded Net income from continuing operations of $11 thousand during the first quarter of fiscal 2026, compared to a net loss of $128 thousand for the prior fiscal year first quarter.

OUTLOOK

Management maintains a positive outlook for Fiscal 2026. The Company’s long-term financials serve as a guide to developing and executing long-term corporate strategy. Management is pleased to provide the Company’s long-term financial objectives:

Reach new record levels for revenue, recurring monthly revenue and Adjusted EBITDA

Leverage NSSG footprint to increase international revenues

Ramp up WALL-E business with new customer wins

Achieve growth in Adjusted Net Income per share;

Reinvest cashflows into the future business growth.

SUMMARY FINANCIAL RESULTS FOR THE FIRST FISCAL QUARTER ENDED JUNE 30, 2025:

Readers should refer to the Company’s audited financial statements and MD&A in respect of its fiscal year ended March 31, 2025, for additional risk factors, accounting policies, detailed financial disclosures, reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures, related party transactions, contingencies, and reporting of subsequent events. Such financial statements and MD&A are incorporated by reference into this news release and will be filed electronically through the System for Electronic Document Analysis and Retrieval (“SEDAR+”), which can be accessed at www.sedarplus.ca.

	Three Months Ended
$ thousands unless otherwise noted	June 30, 2025	Mar. 31, 2025	Dec 31, 2024
INCOME STATEMENT INFORMATION:	Q1 F26	Q4 F25	Q3 F25
RMR in the period, continuing operations⁽¹⁾	$4,062	$3,524	$3,741
Revenues, continuing operations	$8,747	$9,347	$8,412
Gross profit, continuing operations	$3,319	$3,334	$3,441
Gross profit margin, continuing operations	37.9%	35.7%	40.9%
Adjusted EBITDA, continuing operations ⁽¹⁾	$360	$287	$770

Net Income (loss)	$(155)	$(909)	$(128)
Average Common Shares during the quarter	26,648,739	26,647,089	26,643,739
	As At
BALANCE SHEET INFORMATION:	June 30, 2025	Mar. 31, 2025	Dec 31, 2024
Cash balances & GIC investments	$4,712	$4,723	$5,038
Total funded debt as reported, IFRS	$0	$0	$0
Total funded debt & lease obligations, IFRS ⁽¹⁾	$1,255	$1,257	$1,392
Common Shares at period end	26,648,739	26,648,739	26,643,739

(1)Adjusted EBITDA and Recurring Monthly Revenues (“RMR”) are non-IFRS financial measures that have no standard meaning under IFRS and as a result may not be comparable to the calculation of similar measures by other companies. See Description of Non-IFRS Financial Measures. Reconciliations of Adjusted EBITDA and RMR to Net Income or Revenues, as applicable, are provided in the Company’s Management Discussion & Analysis (“MD&A”).

	Three months ended
RECONCILIATION OF ADJUSTED EBITDA		Jun 30, 2025	Mar 31, 2025
Total comprehensive income (loss) from continuing operations		$11	$(862)
Deferred income tax expense (recovery)		17	395
Interest expense		69	58
Depreciation and amortization		412	421
Amortization on capitalized commission		-	1
Share based payments		18	42
Long term employee benefits		(168)	233
Adjusted EBITDA from continuing operations		$360	$287

The Company’s (“RMR”) from continuing operations during the last eight quarters are summarized below. Gross profit margins over the last eight quarters ranged between 37.7% and 44.2%, and were 41.0% on a trailing twelve-month basis to June 30, 2025:

Avante Security	F24⁽¹⁾			F25⁽¹⁾					F26
$thousands	Q2	Q3	Q4		Q1	Q2	Q3	Q4		Q1
RMR in the period	$2,834	$2,889	$3,019		$3,262	$3,309	$3,741	$3,524		$4,062
Other revenue	2,505	4,053	4,240		4,653	4,780	4,670	5,822		4,685
Total revenue	$5,339	$6,941	$7,259		$7,915	$8,089	$8,412	$9,347		$8,747

Total Gross Profit	$2,117	$2,948	$3,211		$3,006	$3,477	$3,441	$3,334		$3,319
Gross Profit %	39.7%	42.5%	44.2%		38.0%	43.0%	40.9%	35.7%		37.9%

(1)The Company’s fiscal year end is on March 31 of each year. “F24” means the fiscal year ended March 31, 2024; and “F25” means the fiscal year ended March 31, 2025.

ABOUT AVANTE CORP.:

Avante Corp Inc. is a Toronto based leading provider of security operatives and technology enabled security solutions to residential and commercial clients. Avante’s mission is to deliver an elevated level of security globally, with white-glove mentality to high- net-worth families and corporations alike, through advanced solutions and methods of detecting conditions that require immediate response. The Company has developed a diversified security platform that leverages advanced technology solutions to provide a superior level of security services. With an experienced team and proven track record of solid growth, Avante is taking steps to establish a broad portfolio of security businesses and solutions for its customers through organic growth complemented by strategic acquisitions. Avante acquires, manages and builds industry leading businesses which provide specialized, mission-critical solutions that address the security risks of its clients. Avante is listed on the TSX Venture Exchange under the ticker “XX”. For more information, please visit www.avantecorp.ca and consider joining our investor email list.

Emmanuel Mounouchos
Founder, CEO & Board Chair, Avante Corp.
416-923-6984
manny@avantesecurity.com

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities described herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This news release does not constitute an offer of securities for sale in the United States. The securities described herein have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements.

Non-IFRS Financial Measures

This press release includes certain measures which have not been prepared in accordance with International Financial Reporting Standards (“IFRS”) such as EBITDA, Adjusted EBITDA and Recurring Monthly Revenue (“RMR”). These non-IFRS measures are not recognized under IFRS and and do not have a standardized meaning prescribed by IFRS. Accordingly, users are cautioned that these measures should not be construed as alternatives to net income determined in accordance with IFRS. The non-IFRS measures presented are unlikely to be comparable to similar measures presented by other issuers.

References to EBITDA are to net income before interest, taxes, depreciation and amortization. References to Adjusted EBITDA are to net income before interest, taxes, depreciation, amortization of intangibles & capitalized commissions, share-based payments, acquisition, integration and / or reorganization costs, deferred financing costs, loss (gain) in fair value of derivative liability and expensing of fair value adjustments per IFRS. Recurring Monthly Revenues, or RMR, represent revenue during the fiscal period that benefited from contractual periodic billing to customers, typically monthly, quarterly or annually.

Management believes that Adjusted EBITDA and Recurring Monthly Revenues are appropriate additional measures for evaluating Avante’s performance. Readers are cautioned that neither EBITDA, Adjusted EBITDA nor Recurring Monthly Revenues should be construed as an alternative to net income or revenues (as such financial measures are determined under IFRS), as an indicator of financial performance or to cash flow from operating activities (as determined under IFRS) or as a measure of liquidity and cash flow. Avante’s method of calculating EBITDA, Adjusted EBITDA and Recurring Monthly Revenues may differ from methods used by other issuers and, accordingly, Avante’s reported Non-IFRS measures may not be comparable to similar measures used by other issuers.

Forward-Looking Information

This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the Company and the environment in which it operates. Forward-looking statements are identified by words such as “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may” “estimate”, “pro-forma” and other similar expressions. These statements are based on the Company’s expectations, estimates, forecasts and projections. The forward-looking statements in this news release are based on certain assumptions. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the Company’s ability to achieve the benefits expected as a result of the sale of Logixx Security Inc., anticipated growth from acquisitions, new service offerings and from development and deployment of new technologies and the list of risk factors identified in the Company’s Management Discussion & Analysis (MD&A), Annual Information Form (AIF) and other continuous disclosure documents available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update any such statement, 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 the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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