POSaBIT Reports Third Quarter 2026 Financial Results

Point of Sale Revenue Up 39% Year Over Year in Q3

Gross Profit Up 6% Year Over Year in Q3

TORONTO & SEATTLE--(BUSINESS WIRE)--POSaBIT Systems Corporation (CSE: PBIT, OTC: POSAF) (the “Company” or “POSaBIT”), a leading provider of Point of Sale and payment solutions for the cannabis industry, today announced its financial results for the third quarter ended September 30, 2026.

“Our Point of Sale business continues to deliver strong growth, up 39% year over year in Q3. That growth expands our recurring revenue from monthly and annual SaaS fees, which reduces risk to the business and makes our forecast more predictable,” said Ryan Hamlin, CEO and Co-founder of POSaBIT. “With approximately $4 million of cash on hand, we elected to pay down our loan with Perga Capital Partners by $1 million ahead of schedule and negotiated new terms that benefit the Company.”

“Our Brand Portal for producers and processors keeps gaining ground in Washington, with most of the state’s top cannabis brands now live on the platform,” Hamlin continued. “Combining our dominant Washington retailer footprint with our growing brand relationships puts POSaBIT in a strong position to connect the entire cannabis ecosystem in our home state.”

“This quarter we shipped two of our biggest AI investments yet. The first is the new POSaBIT MCP server, an AI connector that gives vendors and retailers direct AI access to their data. The second is a full refresh of our back-end merchant portal, built with our internal AI capabilities, which makes it easier for retailers to manage their Point of Sale,” Hamlin concluded.

Balance Sheet

As of September 30, 2026, the Company had cash and cash equivalents of approximately $2.9 million, compared to $3.34 million as of June 30, 2026. Excluding the $1 million loan paydown to Perga Capital Partners in early September, cash would have been approximately $3.9 million, an increase of approximately $0.56 million during the quarter.

Financial Results

in US Dollars	Three months ended
	September 30, 2026	September 30, 2025	% Chg.
Revenue	$2,313,606	$2,363,061	(2)%
Cost of goods sold	$(292,695)	$(447,306)	35%
Gross profit	$2,020,911	$1,915,755	5%
Gross profit margin	87%	81%	6 pts
Operating costs	$(2,143,603)	$(2,426,612)	12%
Operating loss	$(122,692)	$(510,857)	76%
Other (expenses) income	$4,364	$(37,080)	112%
Income (loss)	$(118,328)	$(596,361)	80%

The following table reconciles Revenue, as reported, to Adjusted Revenue for the quarter ended September 30, 2026.

in US Dollars	September 30, 2026
Revenue as reported	$2,313,606
Add: Cash receipts from licensing contracts	$863,871
Deduct: Licensing support revenue	$(128,750)
Adjusted Revenue	$3,048,727

The following table reconciles Gross Profit, as reported, to Adjusted Gross Profit for the quarter ended September 30, 2026.

in US Dollars	September 30, 2026
Gross Profit as reported	$2,020,911
Add: Cash Receipts from Licensing contracts	$863,871
Deduct: Licensing Support Revenue as reported	$(128,750)
Adjusted Gross Profit	$2,756,032
Adjusted Gross Profit Margin	90%

The following table reconciles Net Income or Loss, as reported, to Adjusted EBITDA for the quarter ended September 30, 2026.

in US Dollars	September 30, 2026
Loss, as reported	$(118,328)
Deduct: Foreign exchange gains, as reported	$(4,739)
Add: Share-based compensation, as reported	$30,472
Add: Amortization and depreciation, as reported	$614
Add: Credit loss provision and bad debts, as reported	$2,960
Add: Finance costs, as reported	$131,574
Add: Interest accretion, as reported	$2,179
Add: Transaction costs, as reported	$22,466
Deduct: Other income, as reported	$(154,132)
Add: Income taxes	$-
EBITDA	$(86,934)
Deduct: Licensing support revenue, as reported	$(128,750)
Deduct: Interest income (licensing revenue), as reported	$(9,411)
Add: Cash receipts from licensing agreement, as reported	$863,871
Adjusted EBITDA	$638,776

Conference Call Information

Date: November 12, 2026
Time: 4:30 PM Eastern Time
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 274552
Webcast URL: https://www.webcaster5.com/Webcast/Page/2708/54782

Conference Call Replay Information:

The replay will be available approximately 1 hour after the completion of the live event.

Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 54782
Webcast Replay URL: https://www.webcaster5.com/Webcast/Page/2708/54782

Financial Reports

Full details of the financial and operating results are described in the Company’s unaudited interim consolidated financial statements for the quarter ended September 30, 2026, together with the accompanying notes. The unaudited interim consolidated financial statements and additional information about POSaBIT are available on the Company’s website at www.posabit.com/investor-relations or on SEDAR+ at www.sedarplus.ca.

Non-IFRS Measures

Adjusted Revenue, Adjusted Gross Profit (and Adjusted Gross Profit Margin) and Adjusted EBITDA are non-IFRS measures used by management that do not have any prescribed meaning by IFRS and may not be comparable to similar measures presented by other companies. The Company defines Adjusted Revenue as gross revenue, minus license support revenue, plus actual licensing cash received as part of POSaBIT’s licensing deals. The Company defines Adjusted Gross Profit as Adjusted Revenue less company cost of goods sold, and Adjusted Gross Profit Margin as a percentage of Adjusted Gross Profit as compared to Adjusted Revenue. The Company defines Adjusted EBITDA as net income or loss generated for the period as reported, before interest, taxes, depreciation and amortization and further adjusted to remove changes in fair values and expected credit losses, foreign exchange gains and/or losses, impairments, licensing support revenue and other income, and further adjusted to add cash receipts from licensing agreements, share based compensation and transaction and finance costs. The Company believes these non-IFRS measures are useful metrics to evaluate its core operating performance and uses these measures to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. We caution readers that Adjusted Revenue, Adjusted Gross Profit (and Adjusted Gross Profit Margin) and Adjusted EBITDA are not substitutes for gross revenue, gross profit or profit/loss, respectively.

Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws, including statements regarding the Company’s financial results, business strategy, product development, timing of product development, and future growth plans. Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future, including words or phrases such as “anticipate,” “believe,” “can,” “could,” “estimate,” “expect,” “intend,” “is designed to,” “may,” “might,” “objective,” “plan,” “potential,” “predict,” “should,” “will,” or similar expressions suggesting future outcomes, or the negative thereof or similar variations. Forward-looking statements in this press release include, among other things, statements about: our future growth strategy and growth rate, including growth in our Point of Sale business and recurring SaaS revenue and the predictability of our forecast; our expectations regarding our Brand Portal and our position in the Washington cannabis market; our plans for future products and enhancements of existing products, including our AI capabilities; our expectations regarding cash receipts under our licensing contracts; and our anticipated cash needs and capital requirements. Forward-looking statements are based on the Company’s current expectations and numerous assumptions regarding present and future business strategies and the environment in which POSaBIT will operate in the future, including the demand for our products, anticipated costs and ability to achieve goals, which may prove to be incorrect. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated, including risks related to general business, economic and capital market conditions, competitive pressures, regulatory uncertainty in the cannabis industry, our ability to successfully define, design and release new products in a timely manner that meet our customers’ needs, our ability to manage working capital, additional funding requirements, technology failures, failure of counterparties to perform their contractual obligations, and other risks described from time to time in the Company’s filings with securities regulators. Readers are cautioned not to place undue reliance on forward-looking statements, and the Company undertakes no obligation to update any forward-looking statement except as required by law.

Neither we nor any of our representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this news release. Neither we nor any of our representatives shall have any liability whatsoever, under contract, tort, trust or otherwise resulting from the use of the information in this news release or for omissions from the information in this news release.

ABOUT POSABIT

POSaBIT (CSE: PBIT, OTC: POSAF) is a FinTech, working exclusively within the cannabis industry. We provide a best-in-class Point-of-Sale solution and work with payment processors to enable cashless payment options for cannabis retailers. We work tirelessly to build better financial services and transaction methods for merchants. We bring cutting-edge, AI driven software and technology to the cannabis industry so that all merchants can have a safe and compliant set of services to solve the problems of a cash-only industry. For additional information, visit www.posabit.com.

Neither the Canadian Securities Exchange nor the Canadian Investment Regulatory Organization accepts responsibility for the adequacy or accuracy of this release.