VIQ Solutions Posts Fourth Consecutive Quarter of positive Adjusted EBITDA, Driven by Scalable AI Platform and Structural Margin Gains

MISSISSAUGA, Ontario--(BUSINESS WIRE)--May 12, 2025-- 

VIQ Solutions Inc. ("VIQ" or the "Company") (TSX: VQS), a global leader in secure, AI-driven voice and video capture technology and transcription services, today announced its financial results for the first quarter ended March 31, 2025. All figures are in U.S. dollars and prepared in accordance with International Financial Reporting Standards (IFRS).

Q1 2025 Highlights

   -- Revenue of $9.6 million, down 3% from $9.9 million in the comparative 
      period in 2024 due to foreign exchange 
 
   -- Gross margin increased to 51.9% up 7.6 percentage points from 44.3% in Q1 
      2024 
 
   -- Net loss of $1.8 million, same as comparative period in 2024. 
 
   -- Adjusted EBITDA for Q1 2025 was $0.9 million, a strong improvement from 
      negative Adjusted EBITDA of $0.1 million in Q1 2024, representing a $1 
      million turnaround compared to the same period in the prior year. It also 
      reflects solid sequential growth from $0.5 million in Q4 2024, marking 
      the fourth consecutive quarter of positive Adjusted EBITDA. This 
      continued progress underscores the impact of automation-led productivity 
      gains and disciplined cost optimization across the business. 
 
   -- Adjusted operating loss of $0.7 million, an improvement of $1.1 million 
      from $1.8 million in the comparative period of 2024. 
 
   -- FirstDraft$(TM)$ SaaS adoption grew 72% year-over-year, underscoring its 
      precision, efficiency, and growing strategic value to clients in 
      regulated industries. Its ability to process complex, high-volume content 
      with speed, accuracy, and compliance has become a critical market 
      differentiator. 

Operational Commentary

"Following a record FY2024, we entered 2025 with clear operational focus and sustained momentum. Q1 marks our fourth consecutive quarter of positive Adjusted EBITDA, reinforcing our trajectory toward scalable, tech-enabled profitability," said Sébastien Paré, CEO of VIQ Solutions "Despite foreign exchange headwinds, particularly from a weaker Australian dollar relative to the U.S. dollar, we continued to expand gross margin and reduce our cost base. These results demonstrate the scalability and resilience of our platform automation-first model and validate the structural changes we have implemented over the past year.

Q1 2025 marked a decisive shift from reactive cost control to structural, margin-led execution. VIQ achieved its highest levels of workforce flexibility and throughput efficiency to date and significantly lowering unit production costs. These improvements are not one-off; they reflect embedded automation and vertical AI-driven workflow redesign that is expected to further strengthen unit economics as adoption deepens across the platform.

Targeted AI enhancements, including automated formatting, speaker diarization, scoring agents, and quality assurance tools, are already delivering measurable gains in consistency, speed, and output quality. The continued scaling of NetScribe(TM) and FirstDraft(TM) across enterprise and public sector clients reinforces VIQ's differentiated position in regulated, multi-speaker content-intensive compliance environments. With usage expanding and efficiencies compounding, VIQ is well-positioned to accelerate margin expansion and unlock sustainable operating leverage through 2025 and beyond."

A copy of the Company's unaudited financial statements and accompanying MD&A for the three months ended March 31(st) 2025 (collectively, the "Financial Information") will be available under the Company's profile on SEDAR+ at www.sedarplus.ca.

Conference Call Details

VIQ will host a conference call and webcast to discuss Financial Information on May 13, 2025, at 11:00 a.m. (Eastern time). The call will consist of updates by Sebastien Paré, VIQ's Chief Executive Officer and Alexie Edwards, VIQ's Chief Financial Officer followed by a question-and-answer period.

Investors may access a live webcast of the call on the Company's website at www.viqsolutions.com/investors or by dialing 1-888-440-4052 (North America toll-free) or +1-646-960-0827 (international) to be connected to the call by an operator using conference ID number 4983233. Participants should dial at least 10 minutes before the call starts.

A replay of the webcast will be available on the Company's website through the same link approximately one hour after the conference call concludes.

For more information about VIQ, please visit viqsolutions.com.

About VIQ Solutions

VIQ Solutions is a global provider of secure, AI-driven, digital voice and video capture technology and transcription services. VIQ offers a seamless, comprehensive solution suite that delivers intelligent automation, enhanced with human review, to drive transformation in the way content is captured, secured, and repurposed into actionable information. The cyber-secure, AI technology and services platform are implemented in the most rigid security environments including criminal justice, legal, insurance, government, corporate finance, media, and transcription service provider markets, enabling them to improve the quality and accessibility of evidence, to easily identify predictive insights and to achieve digital transformation faster and at a lower cost.

Forward-looking Statements

Certain statements included in this press release constitute forward-looking statements or forward-looking information (collectively, "forward-looking statements") under applicable securities legislation. Such forward-looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

Forward-looking statements typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking statements in this press release include but are not limited to statements with respect to the Company's ability to accelerate automation, optimize costs, and improve scalability in the future, expected margin improvement, the Company's focus and its priorities, the filing of the Financial Information on SEDAR+ and the conference call to discuss the Company's financial results.

Forward-looking statements are based on several factors and assumptions which have been used to develop such statements, but which may prove to be incorrect. Although VIQ believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on forward-looking statements because VIQ can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding, among other things, recent initiatives, cost savings from workforce and product optimization, cost reductions from the Company's workflow solutions and that sales and prospects may increase revenue. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions that have been used.

Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that while considered reasonable by the Company as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the factors described in greater detail in the "Risk Factors" section of the Company's annual information form and in the Company's other materials filed with the Canadian securities regulatory authorities.

These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. Such estimates and assumptions may prove to be incorrect or overstated. The forward-looking statements contained in this press release are made as of the date of this press release and the Company expressly disclaims any obligations to update or alter such statements, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

 
VIQ Solutions Inc. 
 Interim Condensed Consolidated Statements of Financial Position 
 (Expressed in US dollars, unaudited) 
 
                                    March 31, 2025     December 31, 2024 
Assets 
Current assets 
  Cash                              $    1,621,021    $       1,573,341 
  Trade and other receivables, 
   net of allowance for doubtful 
   accounts                              4,227,080            3,768,699 
  Inventories                               23,559               23,508 
  Prepaid expenses and other 
   deposits                                748,809            1,183,496 
---------------------------------      -----------       -------------- 
 
 Non-current assets                      6,620,469            6,549,044 
  Restricted cash                          170,104              169,097 
  Property and equipment, net              584,596              654,223 
  Right-of-use assets, net                 420,779              153,794 
  Intangible assets                      5,310,363            5,661,614 
  Goodwill                              11,677,354           11,628,213 
---------------------------------      -----------       -------------- 

Total assets                        $   24,783,665    $      24,815,985 
---------------------------------      -----------       -------------- 
 
 Liabilities 
Current liabilities 
  Trade and other payables and 
   accrued liabilities              $    6,851,911    $       5,673,346 
  Income taxes payable                      61,951               29,765 
  Share-based payment liability             21,327               19,366 
  Derivative warrant liability              28,271               35,238 
  Current portion of long-term 
   debt                                 16,651,687           15,988,401 
  Current portion of lease 
   obligations                             277,714              204,802 
  Contract liabilities                   1,448,584            1,635,041 
---------------------------------      -----------       -------------- 
 
 Non-current liabilities                25,341,445           23,585,959 
  Long-term lease obligations              183,300                   -- 
  Other long-term liabilities              848,803              949,622 
---------------------------------      -----------       -------------- 
Total liabilities                       26,373,548           24,535,581 
---------------------------------      -----------       -------------- 
 
   Shareholders' equity 
  Capital stock                         77,593,993           77,593,993 
  Contributed surplus                    9,144,345            9,145,162 
  Accumulated other comprehensive 
   loss                                 (1,357,609)          (1,356,521) 
  Deficit                              (86,970,612)         (85,102,230) 
---------------------------------      -----------       -------------- 
  Total shareholders' equity            (1,589,883)             280,404 
---------------------------------      -----------       -------------- 
  Total liabilities and 
   shareholders' equity             $   24,783,665    $      24,815,985 
---------------------------------      -----------       -------------- 
 
 
VIQ Solutions Inc. Interim Condensed Consolidated Statements of Loss and 
Comprehensive Loss (Expressed in US dollars, unaudited) 
 
                                         Three months ended March 31, 
                                              2025           2024 
------------------------------------      ------------    ----------- 
Revenue                                $     9,579,025   $  9,921,673 
Cost of sales                                4,603,885      5,529,115 
------------------------------------      ------------    ----------- 
Gross profit                                 4,975,140      4,392,558 
------------------------------------      ------------    ----------- 
 
Expenses 
Selling and administrative                   3,810,642      4,310,774 
Research and development                       140,519        165,110 
Stock-based compensation                          (817)        28,533 
Loss (gain) on revaluation of 
 restricted share units                          1,929        (28,777) 
Gain on revaluation of the 
 derivative warrant liability                   (7,022)       (57,165) 
Foreign exchange (gain) loss                   (84,032)       102,833 
Depreciation                                   164,683        194,984 
Amortization                                   707,577        806,457 
Interest                                       488,622        388,924 
Accretion and other financing costs            419,030        326,878 
Restructuring recoveries                        (1,284)        (9,694) 
Strategic review costs                       1,175,603             -- 
Other income                                    (6,207)       (11,205) 
------------------------------------      ------------    ----------- 
Total expenses                               6,809,243      6,217,652 
 
Current income tax expense                      34,279         15,044 
------------------------------------      ------------    ----------- 
Income tax expense                              34,279         15,044 
------------------------------------      ------------    ----------- 
Net loss for the period                $    (1,868,382)  $ (1,840,138) 
------------------------------------      ------------    ----------- 
Exchange loss on translation of 
 foreign operations                             (1,088)      (312,031) 
------------------------------------      ------------    ----------- 
Comprehensive loss for the period      $    (1,869,470)  $ (2,152,169) 
------------------------------------      ------------    ----------- 
 
Net loss per share 
Basic                                            (0.04)         (0.04) 
Diluted                                          (0.04)         (0.04) 
------------------------------------      ------------    ----------- 
Weighted average number of common 
 shares outstanding -- basic                52,334,019     44,782,398 
Weighted average number of common 
 shares outstanding -- diluted              52,334,019     44,782,398 
------------------------------------      ------------    ----------- 
 

The following is a reconciliation of Net Loss to Adjusted EBITDA, the most directly comparable IFRS measure for the three months ended March 31, 2025, and 2024:

 
                                                  Three months ended March 31 
                                                 ----------------------------- 
(Unaudited)                                           2025           2024 
                                                 --------------  ------------- 
Net Loss                                          (1,868,382)     (1,840,138) 
Add: 
Depreciation                                        164,683         194,984 
Amortization                                        707,577         806,457 
Interest expense                                    488,622         388,924 
Current income tax expense                           34,279         15,044 
 
EBITDA                                             (473,221)       (434,729) 
                                                 --------------  ------------- 
Accretion and other financing costs                 419,030         326,878 
 
Loss (Gain) on revaluation of RSUs                   1,929         (28,777) 
Gain on revaluation of the derivative warrant 
 liability                                          (7,022)        (57,165) 
Restructuring costs recovery                        (1,284)         (9,694) 
Strategic review costs                             1,175,603           - 
Other income                                       (158,067)       (11,205) 
Stock-based compensation                             (817)          28,533 
Foreign exchange (gain) loss                        (84,032)        102,833 
 
Adjusted EBITDA                                     872,119        (83,326) 
                                                 --------------  ------------- 
 

The following is a reconciliation of Net Loss to Adjusted operating loss, the most directly comparable IFRS measure for the three months ended March 31, 2025, and 2024:

 
                           Three months ended March 31 
                          ----------------------------- 
(Unaudited)                    2025           2024 
                          --------------  ------------- 
Net Loss                   (1,868,382)     (1,840,138) 
Strategic Review Costs      1,175,603           - 
 
Adjusted operating loss     (692,772)      (1,840,138) 
                          --------------  ------------- 
 

Non-IFRS Measures

The Company prepares its financial statements in accordance with IFRS. Non-IFRS measures are provided by management to provide additional insight into our performance and financial condition. VIQ believes non-IFRS measures are an important part of the financial reporting process and are useful in communicating information that complements and supplements the consolidated financial statements.

Adjusted EBITDA and adjusted operating loss are not measures recognized by IFRS and do not have a standardized meanings prescribed by IFRS. Therefore, Adjusted EBITDA and adjusted operating loss may not be comparable to similar measures presented by other issuers. Investors are cautioned that Adjusted EBITDA and adjusted operating loss should not be construed as alternatives to net income (loss) as determined in accordance with IFRS. For a reconciliation of net income (loss) to Adjusted EBITDA and adjusted operating loss please see the Company's MD&A for three months ended March 31, 2025.

To evaluate the Company's operating performance as a complement to results provided in accordance with IFRS, the term "Adjusted EBITDA" refers to net income (loss) before adjusting earnings for stock-based compensation, depreciation, amortization, interest expense, accretion, and other financing expense, (gain) loss on revaluation of options, (gain) loss on revaluation of restricted share units, gain (loss) on revaluation of derivative warrant liability, restructuring costs, strategic review costs, loss on modification of debt, impairment of property and equipment, impairment of goodwill and intangibles, other expense (income), foreign exchange (gain) loss, current and deferred income tax expense. We believe that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of the Company.

We believe that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, impairment of goodwill and intangibles, loss on modification or extinguishment of debt, other expense (income), and foreign exchange (gain) loss. Accordingly, we believe that this measure may also be useful to investors in enhancing their understanding of the Company's operating performance.

The term "adjusted operating loss" refers to net income (loss) excluding the impact of strategic review costs. Management believes it is appropriate to adjust for this item because strategic review costs do not relate to operating activities of the Company and is useful supplemental information as it provides an indication of the results generated by the Company's main business activities. The presentation of this measure enables investors and analysts to better understand the underlying performance of our business activities.

Trademarks

This press release includes trademarks, such as "NetScribe", which are protected under applicable intellectual property laws and are the property of VIQ. Solely for convenience, our trademarks referred to in this press release may appear without the $(R)$ or TM symbol, but such references are not intended to indicate, in any way, that we will not assert our rights to these trademarks, trade names, and services marks to the fullest extent under applicable law. Trademarks that may be used in this press release, other than those that belong to VIQ, are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250512702855/en/

 
    CONTACT:    Media: 

Jacob Manning VIQ Solutions

Email: marketing@viqsolutions.com

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