Company Announcements

Accelerating Transition to Recurring AI-Driven Revenue While Strengthening Margins and Platform Scale

CALGARY, AB , April 22, 2026 /CNW/ - Renoworks SoftwareInc. (TSXV: RW) ("Renoworks" or the "Company), an industry leader in visualization and lead generation technology for the home renovation and new construction sector, announces its annual and fourth quarter 2025. The financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR+ at www.sedarplus.ca. Unless otherwise stated, all dollar amounts are Canadian dollars.

Financial highlights for the 2025 fiscal year with comparatives for 2025 are as follows:

• Revenues of $7,739,358, a 12% increase from the prior period's $6,942,578.

• Deferred Revenue of $2,436,650December 31, 2025 compared to $2,519,797 at December 31, 2024.

• Recurring revenue of $3,662,811 versus $2,764,398 for the same period in 2024, a 33% increase.

• Gross margin of 77% versus 74% in 2024.

• Net profit of $18,519 compared to a net profit of $133,058 for the same period in 2024.

• Cash at December 31, 2025 was $1,444,728, a decrease of $91,943 from $1,536,671at the end of fiscal 2024. 

• The Company's working capital at December 31, 2025 was a positive $459,164 compared to a negative working capital of $121,451 at December 31, 2024 an increase of $580,615 primarily due to an increase in trade and other receivables and contract assets. Excluding deferred revenue, a significant non-cash item included in working capital, the Company's working capital at December 31, 2025 is positive $2,381,953 ($2,157,879 – Dec 31, 2024).

• As at December 31, 2025, the Company had 40,867,968 common shares issued and outstanding.

Financial highlights for the fourth quarter of fiscal 2025 with comparatives for 2024 are as follows:

• Quarterly revenue of $1,723,794 for the three months ended December 31, 2025 versus $1,732,703 in 2024.

• Recurring revenue of $989,813 versus $802,548 for the same period in 2024, a 23% increase.

• Gross margins continue to be strong at 80% and 74%, respectively for the fourth quarters of 2025 and 2024.

• Net loss of $94,551 for the quarter ended December 31, 2025 compared to a net income of $135,688 in 2024.

Renoworks reported a 12% increase in revenues for the 2025 fiscal year compared to the same period in 2024. This growth was driven by a 33% rise in licensing revenue and a 38% increase in implementation revenue. The Company earned aggregate revenues of $7,739,358, including $3,662,811 from licensing and hosting, $2,527,453 from design services, $851,575 from libraries, and $697,519 from implementation fees.

Net profit for the fiscal year ended December 31, 2025, was $18,518, a decrease compared to the net income of $133,058 reported for the same period in 2024. The decrease was primarily driven by increased overall expenditures to support the company's growth as well as decreased foreign exchange gains.

"2025 was a pivotal year for Renoworks as we made meaningful progress in transitioning our business toward scalable, higher-margin recurring revenue," said Doug Vickerson, Chief Executive Officer of Renoworks. "We saw strong growth in licensing and hosting revenue, up 33% year-over-year, alongside a deliberate reduction in design services as customers increasingly adopt our higher-margin AI-driven platform. This shift is foundational to our long-term strategy--expanding Annual Recurring Revenue, improving gross margins, and increasing revenue predictability. While we continued to invest in AI, data science, and our contractor ecosystem to support future growth, these investments are already translating into stronger enterprise retention, expansion within our existing customer base, and early traction in our AI application suite. As we move into 2026, we expect this transition to accelerate, with continued ARR growth, deeper customer adoption of our platform, and a further strengthening of our position as a leader in digital transformation for the remodeling and new home construction industry. Our focus is on scaling ARR, deepening enterprise adoption, and delivering measurable ROI for our customers as the industry continues its digital transformation."

Adjusted EBITDA for 2025 was $118,828 versus an Adjusted EBITDA of $203,164 reported for the same period in 2024.

Financial results from operations for 2025 with comparatives for 2024 are as follows:

Financial results from operations for the fourth quarter 2025 with comparatives for 2024 are as follows:

The Company's financial position as of December 31, 2025 and December 31, 2024 is as follows:

About Renoworks

Renoworks Software Inc. develops and sells unique digital visualization software and integration solutions for the remodeling and new home construction industry. Renoworks delivers its technology to manufacturers, contractors, builders, and retailers, offering solutions to one of the home improvement industry's greatest challenges: enabling homeowners to review product selections in a hyper-realistic, virtual environment before committing to purchases and construction. Renoworks markets its technologies as an innovative engagement, sales, and marketing platform and generates revenues from five main business lines: Renoworks Enterprise, Renoworks PRO, Renoworks Design Services, Renoworks FastTrack, and Renoworks API.

For more information, visit www.renoworks.com and www.renoworkspro.com.

*Non-IFRS Measures

Adjusted EBITDA is a measure not recognized under IFRS. However, management of Renoworks believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons.

Adjusted EBITDA does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Renoworks' Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Renoworks posted on SEDAR+ (www.sedarplus.ca).

Forward Looking Information

Certain statements in this news release, other than statements of historical fact, are forward looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the Company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE RenoWorks Software Inc.