TORONTO--(BUSINESS WIRE)--May 15, 2026-- Accord Financial Corp. (TSX – ACD) today released its financial results for the quarter ended March 31, 2026. The financial figures presented in this release are reported in Canadian dollars and have been prepared in accordance with International Financial Reporting Standards.

Throughout 2025 and into 2026, Accord has focused on repaying its outstanding debt and simplifying the business. During the first quarter, the Company executed several strategic initiatives; notably, exiting the U.S. market through a series of transactions that led to a reduction of bank debt of $76.6 million over the period.

The Company faced the maturity of its senior secured credit facility (the “Bank Facility”) and unsecured demand and term notes (“Notes”) in July 2025 and the impending maturity of its listed and unlisted debentures (“Debentures”) in January 2026. Beginning on August 15, 2025 the Company announced a series of short-term amendments to its Bank Facility and Notes and today announced further amendments extending the maturity of the Bank Facility to June 12, 2026 and the maturity of the Notes to June 19, 2026. In addition to the maturity date extension, the Bank Facility amendment reduces the total commitment to $65 million. The Company also announced that on January 27, 2026, debentureholders approved amendments including an extension of the maturity date to July 31, 2026.

The Company’s President and CEO, Mr. Simon Hitzig, commented: “The successful first quarter transactions were aimed at reducing bank debt, as well as simplifying the business.” On February 10th, the Company announced the sale of its 60% interest in BondIt Media Capital, and on March 13th the Company announced the sale of certain US portfolio assets. These transactions, together with a series of additional loan sales and repayments since December 31, 2025, reduced the amount outstanding under the Bank Facility from $148.2 million at the start of the year to $71.6 million at March 31, 2026.

Mr. Hitzig further noted, “Accord is now entirely focused on small business lending in Canada – one country, one target market, one team. While “Accord 2.0” emerges future-focused from its recent repositioning, our nearly fifty years of Canadian market presence opens doors with well-earned name recognition and respect.”

Exiting the U.S. market caused the Company’s finance receivables and loans (“funds employed”) to decline from $346 million at the start of the year to $154 million at March 31, 2026. While Accord refocused on its home market, the corresponding reduced scale directly affects revenue. The Company has taken steps to reduce overhead as funds employed declined; however, the pace of cost-cutting lags the revenue decline. The first quarter financial results reflect this challenge, compounded by the burden of professional and other fees related to managing and repaying the Bank Facility.

Mr. Hitzig further stated, “Streamlining the business and simplifying the portfolio is intended to set the stage to restructure and/or refinance all the Company’s debt – this is the top priority for Accord and we continue to work with our financial advisors in this regard. While progress has been made, and our lenders have granted extensions to provide additional time, there are no assurances that further initiatives will be successful or sufficient to fully repay our outstanding debt when due or that our lenders will continue to grant extensions such that the Company can continue to operate as a going concern.”

BOARD CHANGE

The Company also announced that Mr. David Beutel resigned from the board of directors on May 14, 2026. “We thank David for his contributions since joining the board in 2014, and wish him well in his next endeavours,” said Mr. Hitzig.

About Accord Financial Corp.
Accord Financial is one of Canada’s most dynamic commercial finance companies providing fast, versatile financing solutions including asset-based lending, factoring, inventory finance, equipment finance and working capital loans and equipment finance. By leveraging our unique combination of deep experience and independent thinking, we craft winning financial solutions for small and medium-sized businesses, simply delivered, so our clients can thrive.

Note: Non-IFRS measures
The Company’s financial statements have been prepared in accordance with IFRS. The Company uses a number of other financial measures to monitor its performance and believes that these measures may be useful to investors in evaluating the Company’s operating performance and financial position. These measures may not have standardized meanings or computations as prescribed by IFRS that would ensure consistency between companies using these measures and are, therefore, considered to be non-IFRS measures. The non-IFRS measures presented in this press release are as follows:

1) Adjusted net loss and adjusted LPS. The Company derives these measures from amounts presented in its IFRS prepared financial statements. Adjusted net loss comprises shareholders’ net loss before restructuring and other expenses as well as the tax impact of the adjustments. Adjusted LPS (basic and diluted) is adjusted net loss divided by the weighted average number of common shares outstanding (basic and diluted) in the period. Management believes adjusted net earnings is a more appropriate measure of operating performance as it excludes items which do not relate to ongoing operating activities. The following table provides a reconciliation of the Company’s net loss to adjusted net loss:

2) Book value per share – book value is shareholders’ equity and is the same as the net asset value (calculated as total assets minus total liabilities) of the Company less non-controlling interests. Book value per share is the book value or shareholders’ equity divided by the number of common shares outstanding as of a particular date.

3) Funds employed are the Company’s finance receivables and loans, an IFRS measure. Average funds employed are the average finance receivables and loans calculated over a particular period.

Forward-Looking Statements
This news release contains certain "forward-looking statements" and certain "forward-looking information" as defined under applicable Canadian securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements in this news release include, but are not limited to, statements, management's beliefs, expectations or intentions regarding the financial position of the Company and the ability of the Company to repay or refinance its outstanding debt obligations. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties including the Company’s overall liquidity and capital resource position and its ability to repay its debt obligations when due and those risks identified in the Accord's periodic filings with Canadian securities regulators. If any or all of the Company’s outstanding debt obligations are not renewed or replaced upon expiration of their terms, and if the Company is unsuccessful in its ability to generate additional capital from sales of portfolio assets and/or business units and additional alternative financing arrangements to repay same on terms acceptable to the Company, or at all, the Company may not be able to continue to finance its operations and operate as a going concern. See Accord's most recent annual information form and most recent management’s discussion and analysis of results of operations and financial condition for a detailed discussion of the risk factors affecting Accord. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

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For further information please visit www.accordfinancial.com or contact:

Irene Eddy
Senior Vice President, Chief Financial Officer
Accord Financial Corp.
40 Eglinton Avenue East, Suite 602
Toronto, Ontario M4P 3A2
(416) 961-0304
ieddy@accordfinancial.com

Source: Accord Financial Corp.