Company Announcements

Additional 80% Net Loss Improvement Underscores Benefits of Strategic Re-Alignment to Creator Economy Focused Businesses

Chatterbox Technologies Momentum Grows Towards Public Listing on the BSE MSE Platform

TORONTO, LOS ANGELES and MUMBAI, Aug. 29, 2025 /PRNewswire/ - QYOU Media Inc., (TSXV:QYOU OTCQB:QYOUF) a company operating in the United States and India producing and distributing content created by social media stars and digital content creators, has reported financial results for the three months and quarter (Q2 FY 2025) ended June 30, 2025.

Strategic Repositioning and Discontinued Operations

On March 31, 2025, the Company completed the sale of its "Q" India Broadcast Channel Business as part of a broader strategic realignment aimed at concentrating resources on its core influencer marketing businesses in North America and India. The repositioning initiative began in the third quarter of fiscal 2024, with the Company initiating the discontinuation of the Maxamtech mobile gaming business. The divestiture of the "Q" India Broadcast Channel Business completes the Company's re-alignment strategy and enhances its long-term profitability profile.

These actions have resulted in a short-term decrease in both quarterly revenue and operating expenses. Management views them as a proactive and intentional step toward optimizing the Company's financial performance. By focusing on the influencer marketing business, Management believes that the Company is better positioned to achieve sustainable and meaningful profitability.

As a result of these discontinued operations, comparisons of financial performance for the second quarter of 2025 and future periods will exclude the discontinued business units. Financial metric comparisons will be adjusted accordingly to reflect the Company's new strategic focus.

• The company recorded quarterly revenue of $5,713,252, a decrease of 16% compared to the same period prior year.  This was primarily related to paused and delayed campaigns in the US business in response to global and market uncertainty in the quarter. Management anticipates that based upon Q3 and Q4 estimates that this shortfall will be recovered over the course of the 2025 fiscal year and continue to improve in FY 2026.  
• Despite lower revenue in the quarter, marginal positive Adjusted EBITDA was recorded in the quarter, driven by the strategic cost control in all business units while continuing strategic investments in the workforce and relationships in the social media business units. This trend is expected to increase moving forward as the company operates under its new strategic operating plan.
• Chatterbox Technologies received in principle approval of its DRHP (Draft Red Herring Prospectus) from the BSE (formerly Bombay Stock Exchange) for listing on the exchange.  Chatterbox Technologies Ltd is proceeding to finalize the RHP (Red Herring Prospectus) to be utilized for the issuance of public equity shares in the company on the BSE Limited SME platform and to use the name of the exchange in its offering document for listing the shares on its platform.

QYOU Media CEO and Co-Founder Curt Marvis commented, "Q2 FY 2025 was the final quarter where the transition out of our previous business units was completed.  Already in Q3 2025 we are seeing the positive business and financial impact of this focus on our two influencer marketing business units in North America and India. When combined with the imminent public listing event for Chatterbox Technologies in India, we are confident investors will see the clear pathway we are carving out for increased growth and profitability. It has taken a long time, but the second half of 2025 is taking shape to clearly demonstrate the benefits of this strategy."

*Note on Adjusted EBITDA:

To supplement our consolidated financial statements, which are prepared and presented in accordance with International Financial Reporting Standards ("IFRS"), we present Earnings Before Interest Tax Depreciation and Amortization ("Adjusted EBITDA") which is a non-IFRS financial measure. The presentation of non-IFRS financial measurement are not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss or net income (loss) or any other performance measures derived in accordance with IFRS or as an alternative to net cash provided by operating activities or any other measures of cash flows or liquidity.

We define earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") as revenue minus operating expenses excluding non-cash and or non-recurring operating expenses of stock-based compensation, marketing credits, depreciation and amortization (interest and taxes are not included in the Company's operating expenses). Adjusted EBITDA is used as an internal measure to evaluate the performance of our operating segments. We believe that information about this non-IFRS financial measure assists investors by allowing them to evaluate changes in operating results of our business separate from non-operational factors that affect operating income (loss) and net income (loss), thus providing insights into both operations and other factors that affect reported results. A limitation of the use of Adjusted EBITDA as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Furthermore, this measure may vary among companies; thus Adjusted EBITDA as presented herein may not be comparable to similarly titled measures of other companies.

About QYOU Media

Among the fastest growing creator driven media companies, QYOU Media operates in the United States and India through its subsidiaries, producing, distributing and monetizing content created by social media influencers and digital content stars. Our influencer marketing business in India, Chtrbox, is an influencer and marketing platform and agency, connecting brands/products and social media influencers. In the United States, we power major film studios and streamers, game publishers and consumer brands to create content and market via creators and influencers. The company is founded and managed by industry veterans from Lionsgate, MTV, Disney, Sony and TikTok. Experience our work at www.theqyou.com and at chtrbox.com

Source: QYOU Media Inc.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of applicable securities laws. Words such as "expects'', "anticipates" and "intends" or similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein may include, but are not limited to, information concerning the completion of future investments, the approval of the Exchange of the investments, the approval of the Reserve Bank of India of future investments, the expected use of proceeds from the investment, and statements relating to the business and future activities of QYOU. These forward-looking statements are based on QYOU's current projections and expectations about future events and other factors management believes are appropriate. Although QYOU believes that the assumptions underlying these forward-looking statements are reasonable, they may prove to be incorrect, and readers cannot be assured that the offering and the closing thereof will be consistent with these forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements as a result of numerous factors, including certain risk factors, many of which are beyond QYOU's control. Additional risks and uncertainties regarding QYOU are described in its publicly-available disclosure documents, filed by QYOU on SEDAR (www.sedar.com) except as updated herein. The forward-looking statements contained in this news release represent QYOU's expectations as of the date of this news release, or as of the date they are otherwise stated to be made, and subsequent events may cause these expectations to change. QYOU undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

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 release.

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SOURCE QYOU Media Inc.