Martello Reports Financial Results for the Fourth Quarter and 2025 Fiscal Year

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With a continued focus on managed service providers (MSPs), Martello introduced new innovations designed to give partners a competitive edge.

• As a growing number of Microsoft Teams customers now buy Premium, Phone or Teams Rooms, Martello was first to market with a proactive monitoring solution for Microsoft Teams Phone, allowing MSPs to differentiate themselves with unique service delivery capabilities targeted towards Teams Phone.
• For businesses that use both Microsoft Teams and Zoom, the Company launched unified experience management for hybrid environments, making IT teams and MSPs more efficient and effective.
• Martello continues to invest in its Mitel business, working closely with Mitel and its channel partners to offer experience management solutions for Mitel, Microsoft Teams and Zoom environments and extend its capabilities into Unify.
• Chairman Terry Matthews demonstrated continued support and confidence in Martello by investing CAD $2M in a private placement completed in Q4 FY25.

OTTAWA, ON, June 11, 2025 /CNW/ - Martello Technologies Group Inc., ("Martello" or the "Company") (TSXV: MTLO), a provider of user experience management solutions for cloud communication and collaboration systems such as Microsoft Teams and Microsoft 365, today released financial results for the three and twelve months ended March 31, 2025. Martello's software proactively detects performance issues before they impact users of these systems.

Terence Matthews, Chairman of Martello noted growing interest in the Company's technology by partners: "As businesses expand their collaboration toolsets to drive productivity, MSPs are increasingly expected to manage service delivery in complex hybrid collaboration environments leveraging premium tools such as Microsoft Teams Phone," said Mr. Matthews. "I'm pleased that Martello continues to lead the industry with innovations that give these MSPs a competitive edge in this dynamic and rapidly evolving market."

"In FY25 in addition to considerable innovation, Martello laid the foundation to efficiently onboard MSPs, investing in automation of partner enablement and training", said Jim Clark, Chief Executive Officer of Martello. "Working with MSPs including Orange Business Services, Yorktel and many Mitel partners, we continue to execute joint go-to-market strategies designed to drive revenue growth with these partners."

Q4 and FY25 Financial Highlights

• Revenue was $14.5M in FY25 and $3.38M in Q4 FY25, representing an 8% and 11% decrease, respectively, compared to the prior period. The decline in revenue was due to expected declines in legacy products and related support and maintenance revenue.
• Vantage DX contributed $2.55M in revenue in FY25, a 6% increase compared to FY24. Vantage DX monthly recurring revenue ("MRR") decreased by 6% in Q4 FY25 compared to Q4 FY24.
• Sunsetting legacy product revenue declined by 25% or $0.38M in Q4 FY25 compared to Q4 FY24, and 15% or $0.97M in FY25 compared to FY24. The ongoing decline of legacy product revenue is proceeding as expected.
• Revenue from the Mitel business segment decreased slightly by 3% in Q4 FY25 compared to the same period in the prior year and decreased by 6% in FY25 compared to FY24. This decrease is attributable to a revenue mix change from various Mitel Performance Analytics offerings. The Mitel business represents a growth opportunity as it continues to be a large source of revenue and gross margin, representing 45% of total revenues in FY25 (compared to 44% in FY24) and 97% gross margin as a percentage of segment revenue.
• 98% of total revenues were recurring in FY25 and the comparative period, with 97% of revenues recurring in Q4 FY25 compared to 98% in Q4 FY24.
• Gross margin was 86% in Q4 FY25 and in FY25, compared to 88% in Q4 FY24 and FY24. The decrease is attributable to lower revenue and an increase in installation, delivery and hosting costs. Management continues to execute a strategy to reduce hosting costs.
• Monthly recurring revenue ("MRR") decreased by 13% to $1.09M in Q4 FY25 compared to $1.25M in the prior year. The decrease is primarily attributable to expected declines in sunsetting legacy product renewal revenue and changes in the mix of users subscribed to certain Mitel offerings.
• Operating expenses decreased by 7% to $4.25M in Q4 FY25 and by 4% to $16.67M in FY25, compared to $4.57M in Q4 FY24, and $17.43M in FY24. The decrease is attributed to higher government grants and lower headcount costs, partially offset by an increase in marketing spend, professional fees and software subscriptions. The Company continues to invest in Vantage DX revenue growth as management monitors value for spend in all functions of the value chain.
• Loss from operations was $1.34M in Q4 FY25 and $4.14M in FY25, compared to $1.24M and $3.60M, respectively. The increase in loss from operations is attributable to the decrease in revenue as described above, partially offset by lower operating expenses.
• Adjusted EBITDA (a non-IFRS measure) was a loss of $0.82M in Q4 FY25 and $2.02M in FY25 compared to $0.79M in Q4 FY24 and $1.49M in FY24, attributable to the items described above.
• The Company's cash and short-term investments balance was $6.69M as of March 31, 2025 (compared to $7.72M at March 31, 2024).

The financial statements, notes and Management Discussion and Analysis ("MD&A") are available under the Company's profile on SEDAR+ at www.sedarplus.ca, and on Martello's website at www.martellotech.com. The financial statements include the wholly-owned subsidiaries of Martello. All amounts are reported in Canadian dollars. MRR is a non-IFRS measure, representing average monthly recurring revenues earned in a fiscal quarter. 

This press release does not constitute an offer of the securities of the Company for sale in the United States. The securities of the Company have not been registered under the United States Securities Act of 1933, (the "1933 Act") as amended, and may not be offered or sold within the United States absent registration or an exemption from registration under the 1933 Act.

This press 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 in any state in which such offer, solicitation or sale would be unlawful.

About Martello Technologies Group

Martello (TSXV: MTLO) is a technology company that provides experience management solutions for enterprise collaboration tools such as Microsoft Teams and Mitel unified communications. The Company's Vantage DX solution enables IT teams and managed service providers (MSPs) to deliver a frictionless Microsoft Teams user experience. With Vantage DX, they can move from reactive to proactive support by detecting potential performance issues before they impact users, and speeding resolution time from days to minutes. This leads to increased productivity, realizes efficiencies, and allows businesses to harness the full value of Microsoft Teams.  Martello is a public company headquartered in Ottawa, Canada with employees in Europe, the United States and the Asia Pacific region. Learn more at http://www.martellotech.com

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods and " includes, but is not limited to, statements with respect to activities, events or developments that the Company expects or anticipates will or may occur in the future, including management's aim to reduce hosting costs, the aim to expand Martello's capabilities into Unify, and the aim to drive revenue growth with partners.

Forward-looking information is neither a statement of historical fact nor assurance of future performance. Instead, forward-looking information is based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking information relates to the future, such statements are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking information. Therefore, you should not rely on any of the forward-looking information. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking information include, among others, the following:

• Continued volatility in the capital or credit markets and the uncertainty of additional financing.
• Our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so.
• Changes in customer demand.
• Disruptions to our technology network including computer systems and software, as well as natural events such as severe weather, fires, floods and earthquakes or man-made or other disruptions of our operating systems, structures or equipment.
• Delayed purchase timelines and disruptions to customer budgets, as well as Martello's ability to maintain business continuity as a result of COVID-19.
• and other risks disclosed in the Company's filings with Canadian Securities Regulators, which are available on the Company's profile on SEDAR+ at www.sedarplus.ca.

Any forward-looking information provided by the Company in this news release is based only on information currently available and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking information, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

SOURCE Martello Technologies Group Inc.