Montfort Capital Reports Preliminary Fourth Quarter and Year Ended December 31, 2025 Financial Results

Montfort Capital Reports Preliminary Fourth Quarter and Year Ended December 31, 2025 Financial Results

TORONTO, March 30, 2026 /CNW/ - Montfort Capital Corp. ("Montfort" or the "Company") (TSXV: MONT), today announced preliminary unaudited results for its fourth quarter and year ended December 31, 2025. All figures are reported in Canadian dollars unless otherwise noted.

Preliminary Q4 2025 Financial Highlights:

For the quarter ended December 31, 2025, the Company reported the following highlights:

• Loans receivable net of allowance as at December 31, 2025 increased compared to the balance at December 31, 2024, as loan growth occurred across continuing business lines, Langhaus and Nuvo.
• Total revenue decreased by $0.2 million or 14% compared to the prior year, primarily reflecting lower transaction fee income generated by the Pivot business and decreases in the prime lending rate.
• Total operating expenses decreased by $1.5 million or 56% compared to the prior year, due to a reduction in staffing costs and professional fees and a $1.1 million impairment of equity investment recognized in the prior year.
• The net income from continuing operations was $3.9 million compared to a net loss of $1.4 million in the prior year, mainly reflecting the savings in staffing costs and professional fees, and a gain on disposition of the Pivot segment.
• Adjusted EBTDA¹ for the three month period ended December 31, 2025 was $0.2 million compared to negative $14.8 million for the period three month ended December 31, 2024.

For the year ended December 31, 2025, the Company reported the following highlights:

• Loans receivable net of allowance as at December 31, 2025 increased compared to the balance at December 31, 2024, as loan growth occurred across continuing business lines, Langhaus and Nuvo.
• Total revenue decreased by $0.4 million or 10% compared to the prior year, primarily reflecting lower transaction fee income generated by the Pivot business and decreases in the prime lending rate.
• Total operating expenses decreased by $1.5 million or 15% compared to the prior year, as a result of an increase in expected credit losses in H1 2025 of $2.5 million offset by a decrease in overhead expenses of $2.5 million, a $0.5 million decrease in share-based compensation expense, and a $1.1 million impairment of equity investment recognized in the prior year
• The net loss from continuing operations was $0.6 million compared to a net loss of $5.8 million in the prior year, mainly reflecting the savings in operating expenses, and a gain on disposition of the Pivot segment.
• Discontinued operations generated a net income of $4.9 million, representing an increase of $22.8 million compared to the prior year, primarily driven by the gain on disposal of Brightpath of $8.7 million offset by operating losses of $3.2 million prior to disposition.
• Adjusted EBTDA for the year ended December 31, 2025 was $4.4 million compared to negative $20.5 million for the year ended December 31, 2024.

"As you can see from these preliminary year end results, we have made significant headway in our restructuring efforts throughout 2025 which involved streamlining our business in order to reduce operational complexity and overhead costs" said Ken Thomson, CEO of Montfort.  Mr. Thomson added: "The last two years have been a difficult period of transition for Montfort; our efforts to recover value through careful growth and cash flow generation will continue."  The Company further noted that the filing of its audited year end 2025 financial statements will be delayed beyond April 30, 2026, with further updates to follow.  

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1} Adjusted EBTDA is non-IFRS financial measure. Please see below under "Definitions and Reconciliations of non-IFRS Financial Measures" for further information.

Preliminary Unaudited Financial Information

The financial and operating results included in this news release are based on preliminary unaudited estimated results which have not yet been finalized or, in the case of annual results, audited. These estimated results are subject to change upon completion of the financial statements for the year ended December 31, 2025, and the audit of such financial statements and such changes could be material due to, among other things, the completion of Montfort's financial closing procedures, final adjustments, review by Montfort's auditors and other developments that may arise between now and the time the financial results are finalized. Accordingly, such estimated results are forward-looking statements (as defined below) within the meaning of applicable securities legislation and are subject to the limitations and risks described under "Forward-Looking Statements" below.

Definitions and Reconciliations of non-IFRS Financial Measures

The Company reports certain non-IFRS financial measures that are used to evaluate the performance of its businesses and the performance of their respective segments. Securities regulators require such measures to be clearly defined and reconciled with their most comparable IFRS financial measures.

As non-IFRS financial measures generally do not have a standardized meaning, they may not be comparable to similar measures presented by other issuers. Rather, these are provided as additional information to complement those IFRS financial measures by providing further understanding of the results of the operations of the Company from management's perspective. Accordingly, these measures should not be considered in isolation, nor as a substitute for analysis of the Company's financial information reported under IFRS. Non-IFRS measures used to analyze the performance of the Company's businesses include "EBTDA" and "Adjusted EBTDA".

The Company believes that these non-IFRS financial measures provide meaningful supplemental information regarding the Company's performances and may be useful to investors because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. These financial measures are intended to provide investors with supplemental measures of the Company's operating performances and thus highlight trends in the Company's core businesses that may not otherwise be apparent when solely relying on the IFRS measures. These non-IFRS financial measures are calculated as follows:

"EBTDA" is comprised as income (loss) before income tax and depreciation and amortization. Management believes that EBTDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. See "Consolidated EBTDA and Adjusted EBTDA Reconciliation" appended to this press release for a quantitative reconciliation of EBTDA to the most directly comparable financial measure.

"Adjusted EBTDA" is comprised as income (loss) before income tax, depreciation, amortization, share-based compensation, and other income / expenses not attributable to the ongoing operations of the Company. Management believes that Adjusted EBTDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. See "Consolidated EBTDA and Adjusted EBTDA Reconciliation" appended to this press release for a quantitative reconciliation of Adjusted EBTDA to the most directly comparable financial measure.

A reconciliation of how the Company calculates EBTDA and Adjusted EBTDA is provided in the table appended to this press release.

Montfort builds and manages private credit portfolios that have focused investing strategies for the institutional and accredited investors markets.  For further information, please visit www.montfortcapital.com.

Neither the 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 news release.

Forward-Looking Information

Certain statements contained in this press release constitute "forward-looking information" and "forward-looking statements", collectively "forward looking statements". All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "designed", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These forward-looking statements include, but are not limited to: the Company's efforts to recover value through careful growth and cash flow generation; the Company's continued restructuring and streamlining efforts; and the delay in filing the Company's audited year-end 2025 financial statements beyond April 30, 2026.

This forward-looking information is based on a number of material factors and assumptions including, but not limited to: interest rates and financing costs remaining consistent with current market conditions; no material adverse changes in general economic conditions in key markets; competitive positioning remaining stable in the Company's target markets; stability in the competitive landscape of the Company's businesses with no disruptive new market entrants; credit spreads in private lending markets remaining consistent with current market conditions; no significant changes in asset valuations that would impact collateral values; continued demand for private credit; ability to maintain current loan servicing capabilities and operational efficiencies; ability to maintain relationships with key capital providers, co-lenders and financial partners; and availability of external financing at reasonable rates. These assumptions should be considered carefully by readers.

The forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements. These risks and uncertainties include, but are not limited to: lower than expected revenue growth in the Company's core business segments; potential for increased competition that could compress profit margins; possibility of higher operating costs than forecasted; risk of economic downturn affecting demand for the Company's services; unforeseen regulatory changes impacting the Company's business model and/or cost structure; deterioration of the loan portfolio of the Company; risks associated with the delayed filing of the Company's audited annual financial statements, including potential regulatory consequences; risk that preliminary unaudited financial results may differ materially from final audited results; and the Company being unable to continue as a going concern due to its inability to procure additional liquidity and / or financing on reasonable terms. We do not undertake to update any forward-looking information, except as, and to the extent required by, applicable securities laws.

Based on current available information, the Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that those expectations will prove to be correct. The forward-looking statements in this press release are expressly qualified by this statement, and readers are advised not to place undue reliance on the forward-looking statements.

SOURCE Montfort Capital Corp.