Company Announcements

• Record Revenue: Full-year 2025 revenue of $25.8 million, up 644% year-over-year, driven by a 12x increase in VER trading volume in compliance markets.
• Return to Profitability: Net income of $1.6 million in fiscal 2025, compared to a net loss of $4.6 million in fiscal 2024 -- a $6.2 million year-over-year improvement.
• Compliance-Market Positioning: Established track record in BC's Output-Based Pricing System (BC OBPS) and active project pipeline targeting compliance-aligned, equity-owned carbon credit supply.

VANCOUVER, BC , April 30, 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 services, today announced its audited financial results for the fourth quarter and the full fiscal year ended December 31, 2025.

Fiscal 2025 marked a significant inflection point for Ostrom Climate, with the Company delivering substantial revenue growth, achieving profitability, and generating positive cash flow. The promising financial results in 2025 were a result of extensive restructuring and strategic repositioning initiatives undertaken by management in late 2024 and early 2025 to focus on carbon project development and trading. These initiatives included investment in its long-term carbon development project, implementing aggressive cost containment measures and targeting verified emission reduction ("VER") trading opportunities, most notably in compliance markets such as British Columbia's Output-Based Pricing System ("BC OBPS"). The benefits of these actions have seen Ostrom Climate generate record revenue and profits in 2025, particularly in Q4.

Management Commentary

"Fiscal 2025 demonstrated that the intentional decisions we made to reposition Ostrom's strategy are delivering results," said Navdeep Dhaliwal, Chairman and Chief Executive Officer of Ostrom Climate Solutions Inc. "After a difficult but necessary reset in 2024, the Company delivered a meaningful turnaround in 2025, with revenue growing to $25.8 million and net income of $1.6 million -- results weighted heavily toward Q4. This improvement was driven by increased VER trading activity in compliance markets, a leaner operating structure, and the early benefits of a focused strategic repositioning. We believe this is the beginning of building a strong foundation for long-term value, and that foundation is already taking shape: Ostrom is actively building a pipeline of development projects in which the Company intends to hold material equity stakes and ownership of carbon credits, targeting end-use compliance markets where price signals are clear and durable."

"The implementation of the BC OBPS is a structurally superior market mechanism because it establishes a defined carbon price and imposes mandatory compliance obligations on industrial emitters -- creating genuine, price-supported demand for eligible offsets. More broadly, we are observing an accelerating global trend toward regional and industry-specific compliance markets that place an explicit price on carbon -- a development that materially improves the economics of developing and financing the kinds of projects Ostrom is building. Ostrom was well-positioned to capitalize on compliance-market demand in 2025 through its established trading relationships and track record of VER delivery. At the same time, our results should be viewed with appropriate context: carbon trading revenue is inherently subject to timing, customer delivery schedules, and recognition of deferred revenue -- factors outside our direct control. For that reason, we continue to measure our progress primarily on gross profit, operating discipline, and cash generation."

"We are building toward a business model that generates recurring, high-quality carbon credit supply from projects where Ostrom holds material equity and credit ownership -- not just trading and advisory fees. This shift toward equity-based project development is central to our long-term value creation thesis and is directly aligned with the macro trend toward compliance markets that provide the price certainty required to develop and finance high-integrity projects. We remain focused on executing with discipline, capturing VER trading opportunities as they arise, and advancing our project pipeline in a manner that is financially sustainable. The results in 2025 reinforce our conviction that Ostrom's strategy is correct and that its long-term prospects are well-aligned with where carbon markets are heading."

Financial Highlights:

The fiscal year and fourth quarter financial results reflect a sharp improvement from fiscal 2024, when the Company was still absorbing restructuring costs, project development investment, and lower revenue caused by market uncertainty and the planned wind-down of lower-margin legacy consulting mandates. In light of these changes, the Company presents the following fiscal year and fourth quarter highlights:

Fiscal Year Financial Highlights:

• Fiscal year 2025 revenue totaled $25,773,561, representing an increase of $22,310,750, or approximately 644%, from $3,462,811 in fiscal 2024. This increase was driven primarily by materially higher VER sales, which increased to $24,330,687 in 2025 from $1,959,496 in the prior year. Consulting and advisory revenue was $1,442,874, compared with $1,503,315 in 2024.
• Gross profit for the year was $3,971,087, compared to $754,999 in 2024, representing an increase of $3,216,088. Gross margin was approximately 15.4%, compared to 21.8% in the prior year. The margin profile reflects a higher-volume VER trading year in which certain transactions relied on externally sourced or higher-cost inventory, while absolute gross profit increased materially despite the lower margin on certain trades.
• The Company reported net income for fiscal 2025 of $1,592,510, compared to a net loss of $4,579,652 in fiscal 2024, representing a year-over-year improvement of approximately $6.2 million. The improvement reflected higher gross profit, lower operating expenses, and income recognized on extinguishment of deferred revenue arising from the settlement of obligations under an Emission Reduction Purchase Agreement ("ERPA"), partially offset by the impairment of the right-of-use asset and higher finance and interest costs.
• Operating expenses decreased to $3,064,644 in 2025 from $5,260,386 in 2024, reflecting lower salaries, management fees and benefits, research and development expense, selling, general and administrative costs, consulting fees, professional fees, and share-based payments. These reductions reflect the Company's continued efforts to align its cost base with forecasted billings, project milestones, and its revised strategic priorities.
• On an adjusted basis, excluding non-cash share-based compensation of $108,396, milestone-based consulting fees intended for share settlement of $64,995, and UPRIIS project R&D expenses of $822,064, the Company's adjusted net income for fiscal 2025 was approximately $2,587,965, compared to an adjusted net loss of approximately $2,604,270 in the prior year. This non-IFRS measure is intended to provide additional insight into core operating performance during a period of strategic transition and investment.

Fourth Quarter Financial Highlights:

The fourth quarter financial results are summarized below:

• Q4 2025 revenue reached approximately $18,164,391, compared to $1,568,181 in Q4 2024. The increase was driven primarily by a significant increase in VER sales activity, including transactions connected to stronger compliance-market demand and customer delivery timing in the fourth quarter.
• Gross profit for Q4 2025 was approximately $2,264,463, compared to $86,207 in Q4 2024. The year-over-year increase reflects substantially higher VER sales volume during the quarter, partly offset by a lower gross margin profile on certain high-volume trading activity.
• The Company generated net income of approximately $2,941,233 in Q4 2025, compared to a net loss of $1,373,756 in Q4 2024. This variance was driven by increased revenue and gross profit, operating cost discipline, and the recognition of income on extinguishment of the ERPA project advance.
• On an adjusted basis, using the same non-IFRS adjustment approach applied to the fiscal year results, the Company estimates adjusted net income for Q4 2025 of approximately $3.1 million, compared to adjusted net loss of approximately $594,114 in Q4 2024. This non-IFRS measure is intended to provide additional insight into operating performance and should not be considered in isolation or as a substitute for IFRS financial measures.

Operational and Strategic Developments

During fiscal 2025, Ostrom Climate continued to reposition its business around three core operating pillars: Carbon Project Development, Carbon Intelligence Services, and Net-Zero Solutions. The Company's strategic evolution from a carbon management consultancy toward a lead equity partner and developer of high-integrity carbon projects is intended to provide greater control over project quality, scalability, credit integrity, and long-term financial outcomes.

Ostrom's VER trading activity increased materially during the year as compliance-market demand strengthened, particularly in British Columbia. The Company believes the BC OBPS has created a favorable framework for eligible carbon offsets as industrial emitters seek credible, verifiable credits to help meet regulatory obligations. Management expects compliance markets to remain a significant strategic focus for the Company, while recognizing that carbon trading revenue can be uneven from quarter to quarter due to delivery timing, customer demand, inventory availability, and recognition of deferred revenue.

The Company also continued to advance its long-term project development strategy, including its flagship climate-smart rice project under the Upper Pampanga River Integrated Irrigation System ("UPRIIS") in the Philippines. The project remains aligned with Ostrom's broader strategy of developing high-integrity nature-based and agriculture-linked carbon projects with potential relevance to voluntary and compliance carbon markets, including opportunities such as the Carbon Offsetting and Reduction Scheme for International Aviation ("CORSIA") and Japan's Joint Crediting Mechanism ("JCM").

In December 2025, the Company entered into a settlement agreement in respect of the ERPA governing future VER sales from the UPRIIS Project. Management continues to assess financing and partnership structures that can support future development of the UPRIIS platform and other high-integrity carbon opportunities.

During the year, Ostrom also continued to streamline operations and strengthen internal execution. The Company reduced overhead, improved coordination across operating functions, and focused consulting and advisory activities on higher-margin, milestone-driven engagements. Management believes these measures are necessary to improve near-term cash flow while preserving the Company's ability to execute on its core development-stage initiatives.

Leadership and Governance Update

On July 21, 2025, the Company announced that Tejinder Virk had stepped down as Chief Executive Officer and from the Company's Board of Directors. Navdeep Dhaliwal, Executive Chairman, assumed Chief Executive Officer responsibilities to ensure continuity and maintain focus on Ostrom's strategic priorities.

On August 29, 2025, the Company announced the results of its annual general meeting, at which the number of directors was fixed at four: Navdeep Dhaliwal, Robert Christopher Morris, Tar Deol, and Colin Haddock. Shareholders ratified and approved the Company's 10% rolling stock option plan, and the Board reappointed Navdeep Dhaliwal as Chairman and Chief Executive Officer and Trevor Scott as Chief Financial Officer.

Liquidity and Outlook

The Company ended fiscal 2025 with cash of $1,718,815, compared to $550,710 at December 31, 2024 and $292,436 at September 30, 2025. Total assets increased to $2,398,745 at December 31, 2025 from $1,607,190 at December 31, 2024, while non-current liabilities decreased to $660,012 from $2,001,042, primarily due to the elimination of the long-term deferred revenue balance associated with the settled project advance.

Despite the improvement in profitability and year-end cash, Ostrom continues to manage a constrained working capital position. As at December 31, 2025, current assets were $2,388,320 and current liabilities were $4,813,601, resulting in a working capital deficiency of approximately $2.42 million. Current liabilities included accounts payable and accrued liabilities, deferred revenue expected to be recognized within the next twelve months, other historical liabilities, convertible debentures, promissory notes, loan amounts, and lease liabilities.

Management continues to monitor cash flow, working capital, and financing options closely. The Company remains focused on improving liquidity through disciplined execution, business and equity financing transactions where appropriate, strategic partnerships, further diversification of revenue streams, and the repayment, reduction, or restructuring of legacy obligations where practical.

Ostrom believes that long-term fundamentals in voluntary and compliance carbon markets remain favorable, particularly for high-integrity, compliance-aligned projects. The Company continues to evaluate opportunities in Canadian compliance markets, CORSIA-eligible supply, nature-based carbon removals, forest carbon, biochar, and climate-smart agriculture. Management's objective is to reduce earnings volatility over time by building a core portfolio of owned or partnered projects that can generate recurring, high-quality carbon credit supply, while preserving the flexibility to capture trading and advisory opportunities as market conditions evolve.

Strategic and Operational Outlook

Over the past year, both voluntary and compliance carbon markets have continued to experience macroeconomic uncertainty, evolving regulation, and shifting buyer preferences toward higher-integrity supply and direct project origination. Ostrom's strategic pivot toward focusing on trading opportunities in compliance markets, as well as the ownership and development of high-quality, compliance-aligned carbon projects is designed to position the Company to navigate this volatility while building scalable long-term value.

In Canada, Ostrom believes its established operational presence, technical expertise, and track record in high-integrity offset project development position it well to support regulated entities seeking credible carbon credits under the BC OBPS and other emerging compliance regimes. The Company's experience across carbon project development, monitoring, reporting and verification ("MRV") frameworks, policy analysis, and credit marketing provides a foundation for both project-level value creation and customer-facing carbon solutions.

Internationally, Ostrom intends to use its significant experience and expertise to focus on international carbon markets and continues to evaluate opportunities for high-integrity carbon removal and reduction projects, including nature-based solutions, climate-smart agriculture, improved forest management, avoided planned deforestation, biochar, and related methodologies. The Company believes these areas are increasingly aligned with corporate net-zero commitments, compliance-market development, and institutional demand for durable, verifiable climate outcomes.

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.