OSTROM CLIMATE REPORTS FISCAL Q1 2026 FINANCIAL STATEMENTS

OSTROM CLIMATE REPORTS FISCAL Q1 2026 FINANCIAL STATEMENTS

VANCOUVER, BC, June 1, 2026 /CNW/ - Ostrom Climate Solutions Inc. ("Ostrom" or the "Company") (TSXV: COO) (Frankfurt: 9EAA), a leading provider of carbon project development, net-zero climate solutions, and carbon credit marketing and trading, today announced its unaudited financial results for the first quarter ended March 31, 2026.

First Quarter Financial Highlights:

• Q1 2026 revenue totaled $1,743,742, a significant increase from $633,964 in Q1 2025, primarily due to higher Verified Emission Reduction (VER) sales and the recognition of deferred revenue from prior VER sales following the purchase and retirement of VERs.
• Gross profit for the quarter was $1,498,251, compared to $320,695 in Q1 2025, reflecting high-margin recognition of deferred revenue through opportunistically timed VER purchases and retirements.
• The Company reported net income of $693,196, compared to a net loss of $716,357 in Q1 2025. Adjusted net income was $982,741 compared to an adjusted net loss of $434,123 in Q1 2025, excluding share-based compensation, milestone-based consulting fees intended for share settlement and Smart-Rice Project R&D expenses.
• Operating expenses declined to $761,017 from $959,474 in Q1 2025, reflecting continued cost discipline, lower consulting and salary costs, lower professional fees and lower share-based payments, partially offset by higher Smart-Rice R&D and SG&A expenses.

Operational and Strategic Developments:

• The Company achieved another quarter of promising revenue and profit performance, driven mainly by VER trading activity at high profit margins.
• Ostrom continued to focus on compliance market opportunities, including British Columbia Output-Based Pricing System (BC OBPS) eligible credits, while acknowledging expected seasonality around the November 30 compliance deadline.
• The Company continued to advance its strategic focus on Carbon Project Development, Carbon Intelligence Services, and Net Zero Solutions, including ongoing development work related to its flagship UPRIIS rice methane reduction project in the Philippines (the "Smart-Rice Project").
• The Company repaid its outstanding promissory notes by March 31, 2026, and continues to focus on further debt reduction, disciplined working capital management, balance sheet improvement, and strategic financing and partnership opportunities.

Management Commentary:

"Q1 2026 was a strong start to the year for Ostrom, with revenue of $1.7 million, gross profit of $1.5 million and net income of $0.7 million," said Navdeep Dhaliwal, Chairman and Chief Executive Officer of Ostrom. "The quarter benefited from opportunistic VER purchasing and retirement activity, which enabled the Company to recognize deferred revenue at attractive margins and demonstrates the value of maintaining market access and trading discipline in high-integrity VER markets."

"At the same time, our results continue to be influenced by the timing of VER deliveries, the seasonality of customer demand, deferred revenue recognition and project milestones. We remain focused on building upon our recent success in VER trading activities, disciplined cost management, further balance sheet improvement and debt reductions, and importantly, further advancing our carbon project development opportunities."

Liquidity and Outlook

The Company ended Q1 2026 with cash of $1,089,058, compared with $1,718,815 at December 31, 2025. Current liabilities declined to $3,617,542 from $4,813,601 at December 31, 2025, and deferred revenue declined to $1,064,333 from $2,503,837 as revenue was recognized during the quarter.

Ostrom continues to manage liquidity through disciplined working capital management, cost alignment, and the pursuit of financing and strategic partnership opportunities. The Company remains focused on trading opportunities in compliance markets, while continuing to advance owned and partnered carbon project development opportunities intended to generate recurring, high-quality carbon credit supply over time.

About Ostrom Climate Solutions Inc.

Ostrom is one of North America's leading providers of carbon project development and management services, climate solutions, and carbon credit marketing. Over the past 12 years, Ostrom has validated and verified forest carbon projects globally for voluntary and regulated markets, having developed 16 million acres of forest land for conservation and monetized over 10 million carbon credits. Based out of British Columbia, Canada, the Ostrom team has a global reach, has worked with over 200 organizations globally, including Fortune 500 companies, managed projects in partnership with Indigenous stakeholders and has extensive on-ground experience in emerging markets.

Ostrom is focused on developing high-quality carbon projects that have a positive impact on the environment, local communities and biodiversity. Ostrom is publicly listed on the TSX Venture Exchange (COO) and the Frankfurt Stock Exchange (9EAA).

Please visit us at www.ostromclimate.com.

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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.

Cautionary Statement Regarding Forward Looking Statements

This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

SOURCE Ostrom Climate Solutions Inc.