Optiva Inc reports third-quarter 2025 financial results

• Revenue of $10.1 million
• Total Contract Value (“TCV”)⁽¹⁾ bookings of $13.4 million
• Gross margin of 55%
• Adjusted EBITDA⁽¹⁾ loss of $3.9 million
• EPS loss of $ 0.91
• $8.1 million of cash

Toronto, Canada – Optiva Inc. (“Optiva” or “the Company”) (TSX:OPT), a leader in powering the telecom industry with cloud-native billing, charging and revenue management software on private and public clouds, today released its third quarter financial results for the three-month period ended September 30, 2025.

Business Highlights

• On September 26, 2025, Optiva announced that it had entered into a strategic transaction with Qvantel that will combine the operations. The transaction is expected to close before the end of 2025. The combination of the two highly complementary product companies establishes a best-of-breed BSS vendor capable of serving the spectrum of communication service providers (CSPs). Please refer to Sedar+ or Optiva website for more details.
   
• TCV of Q3 bookings totaled $13.4 million. For the trailing twelve months, TCV of bookings totaled $68.8 million.
   
• A leading fast-growing MVNO in the APAC region selected Optiva to lead a full-stack, end-to-end BSS transformation and launch a next-generation MVNE platform. Delivered as a fully managed SaaS solution on public cloud, the platform offers scalability, simplified operations, seamless upgrades and faster deployment. Optiva BSS Platform will provide converged real-time charging and billing as well as a complete refresh of digital engagement channels, including mobile apps and customer self-care portals. The MVNO will leverage the platform's AI and advanced analytics capabilities to gain real-time business insights, deliver hyper-personalized offerings and enhance customer experiences.
   
• Móvil Éxito, the first MVNO in Colombia to be launched by a retailer and part of Grupo Éxito, renewed its BSS platform support agreement with Optiva for an additional three years. This continues the support of its SaaS, next-generation full BSS stack, Optiva BSS Platform, to deliver a converged digital experience and enable new service offerings to support innovation, increase profitability and drive customer loyalty.
   
• A Tier 1 telecom and one of the UK’s leading mobile and fixed telecommunications providers expanded its partnership with Optiva, implementing innovative B2B and B2B2X network communication services using Optiva’s latest state-of-the-art Application Server and expanding the overall architecture to scale more services in the future. Central to the initiative is the cloud-native, open-architecture service creation platform featuring Optiva's Open API framework. The expansion will enhance the operator's ability to grow cutting-edge services and create new revenue opportunities.
   
• Optiva was named a finalist for the prestigious 2025 Glotel Awards in the category of MVNO Solution of the Year. The recognition showcases how Optiva AI-enabled BSS is transforming the MVNO/E market.

“Together with Qvantel, we are forging a stronger, more agile company with greater scale, financial strength and a highly competitive portfolio of AI-enabled, best-of-breed BSS products,” said Robert Stabile, CEO of Optiva. “Since announcing our strategic transaction, our teams have been working hand in hand to bring our shared vision to life. Guided by a shared culture of trust, collaboration, commitment and care, we are already seeing tangible results, including a joint multi-country deployment for a leading CSP. This demonstrates what’s possible when our teams innovate and execute together, accelerating innovation, delivering exceptional customer value and shaping the future of AI-driven growth in the BSS market.”

For more information about Optiva, please visit: https://www.optiva.com/investors

Third Quarter 2025 Financial Results Highlights:

• Revenue for Q3’25 was $10.1 million. On a year-over-year basis, the change by revenue type included a $1.6 million decrease in support and subscription revenue, $0.5 million decrease in software and services revenue and $0.2 million increase in third-party software and hardware revenue. The decrease in support and subscription in the period mainly relates to the earlier-than-expected discontinuation of support by migrating customers. The decrease in software and services revenue is due to fewer software implementations.
   
• Gross margin for Q3’25 was 55% compared to 58% during the same period in 2024. The decrease in gross margin is primarily attributable to lower revenue from high-margin support and subscription services, as well as a higher amount of customizations with lower margins ordered by customers that required fulfillment, compared to the previous period. We expect our gross margins may fluctuate as our cloud-native model and product capabilities are adopted by new and existing customers in the public or private cloud in future periods.
   
• Adjusted Earnings before interest, taxes, depreciation and amortization ("EBITDA")¹ for Q3 was a loss of $3.9 million as compared to a loss of $0.6 million during the same period in 2024.
   
• Net loss for Q3 was $5.7 million compared to a net loss of $3.4 million during the same period in 2024. The net loss for the three months ended September 30, 2025, was lower primarily due to lower revenue and higher operating expenses incurred during the period compared to the same period last year. The company’s higher operating expenses were mainly due to expenditure related to the announced strategic transaction.
   
• The Company ended the third quarter with a cash balance of $8.1 million (including restricted cash).

_{⁽¹⁾ EBITDA, Adjusted EBITDA, TCV and adjusted EPS are non-IFRS measures. These measures are defined in the "Non-IFRS Financial Measures" section of this news release.}

Non-IFRS Measures

“EBITDA" and "Adjusted EBITDA" are not financial measures calculated and presented in accordance with International Financial Reporting Standards (IFRS) and should not be considered in isolation or as a substitute to net income (loss), operating income or any other financial measures of performance calculated and presented in accordance with IFRS, or as an alternative to cash flow from operating activities as a measure of liquidity. The Company defines EBITDA as net income (loss) excluding amounts for depreciation and amortization, other income, finance costs, finance income, income tax expense (recovery), foreign exchange gain (loss) and share-based compensation. The Company defines "Adjusted EBITDA" as EBITDA (as defined above), excluding restructuring costs, one-time provision amounts and other one-time unusual items. The Company believes that Adjusted EBITDA is a metric that investors may find useful in understanding the Company's financial position. The following table provides a reconciliation of Net Income to EBITDA and Adjusted EBITDA (in thousands of U.S. dollars).

TCV is the Total Contract Value of all bookings closed in the period.