ACCESS Newswire·Nov 10, 2026, 7:30 AM ET

Adcore Reports Third Quarter 2026 Results: Gross Margin Rises to 64%, Operating Loss Halved, Cash Up to $4.3 Million as Restructuring Takes Hold

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Adcore Inc. reported Q3 2026 results with revenue of $5.8 million, down from $7.6 million in Q3 2025, but gross profit rose 20% year-over-year to $3.7 million.
Gross margin improved significantly to 64% in Q3 2026 from 40% in Q3 2025, driven by a 54% year-over-year reduction in cost of revenue.
Operating loss narrowed to $263,000 in Q3 2026, a 54% decrease from $570,000 in Q2 2026, while Adjusted EBITDA turned positive at $112,000.
Cash from operating activities generated $0.9 million in Q3 2026, contrasting with cash usage in Q3 2025 ($1.5 million) and Q2 2026 ($0.4 million).
The company ended Q3 2026 with $4.3 million in cash, no debt, and trade payables reduced from $8.4 million to $4.6 million.
North America revenue increased 27% to $1.3 million in Q3 2026, while total operating expenses decreased 7% to $3.9 million due to a strategic focus on higher-margin business.
A company-wide restructuring initiated in September 2026 was substantially complete by October 2026, with Q3 reflecting only partial benefits.
Adcore forecasts returning to operating profitability in Q4 2026, targeting an operating profit between $500,000 and $700,000.
The full impact of the new cost structure is expected to be realized from Q1 2027 onwards, with operating expenses projected to drop to roughly $0.9 million per month by year-end.
The company is reviewing strategic alternatives for its AI product portfolio, including Proposaly, AI Studio, and Total Eclipse, considering external funding, partnerships, or divestiture.
Management noted that lower Q3 revenue resulted from a deliberate decision to exit lower-margin business to improve overall profitability.
Adcore will host a conference call on November 10, 2026, at 10:00 a.m. ET to discuss the financial results.

Company: Adcore Inc.
Keywords: Business & Professional Services, Earnings