Postmedia Network Canada — Earnings Release 2026

Jan 12, 2026

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POSTMEDIA

Postmedia Reports First Quarter Results

January 12, 2026 (TORONTO) – Postmedia Network Canada Corp. ("Postmedia" or the "Company") today released financial information for the three months ended November 30, 2025.

"Our first quarter performance marks a solid start as we build momentum and continue to advance our fiscal 2026 priorities," said Andrew MacLeod, Postmedia President and Chief Executive Officer. "In a challenging operating environment, growth in parcels and other revenue highlights the importance of diversification, and the steps we are taking to build more robust revenue streams. This includes the performance of our flyer business, where investment in our distribution network enabled us to bridge the gap during the Canada Post strike, ensuring that Canadian businesses and households were not left without the service they rely on."

"Our results this quarter reflect the benefits of structural changes made over the past year and our continued focus on disciplined cost management," MacLeod added. "As we move forward, we remain focused on strengthening our core operations, investing in new growth areas and positioning the company for long term resilience."

First Quarter Operating Results

Revenue for the quarter was $111.9 million as compared to $110.3 million in the same period in the prior year, representing an increase of $1.6 million (1.5%). The revenue increase was primarily due to increases in parcel revenue of $3.6 million (27.1%) and other revenue of $0.3 million (6.4%), partially offset by decreases in circulation revenue of $2.2 million (6.2%).

Total operating expenses excluding depreciation, amortization, impairment and restructuring and other increased $2.0 million, or 1.9%, for the quarter ended November 30, 2025, relative to the same period in the prior year. The increase relates to increased compensation, distribution and production expenses, partially offset by decreases in newsprint and other operating expenses.

Operating income before depreciation, amortization, impairment and restructuring and other in the quarter was $5.1 million, a decrease of $0.4 million relative to the same period in the prior year. The decrease in operating income before depreciation, amortization, impairment and restructuring and other is due to an increase in total revenue, partially offset by an increase in operating expenses excluding depreciation, amortization, impairment and restructuring and other.

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Net loss in the quarter ended November 30, 2025 was $20.4 million, as compared to a net loss of $24.5 million in the same period in the prior year. The decrease in net loss was primarily the result of a decrease in amortization, restructuring and other expenses, and a decrease in foreign currency exchange losses, partially offset by an increase in interest expense, and a decrease in gains on derivative financial instruments and financial assets at fair value through profit and loss.

Additional Information

Additional information, including financial statements and management's discussion and analysis can be found on the Company's website at www.postmedia.com or on SEDAR+ at www.sedarplus.ca.

Note: All dollar amounts are expressed in Canadian dollars unless otherwise specified.

About Postmedia Network Canada Corp.

Postmedia Network Canada Corp. (TSX:PNC.A, PNC.B) is the holding company that owns Postmedia Network Inc., a Canadian newsmedia company representing more than 130 brands across multiple print and digital platforms. Award-winning journalists and innovative product development teams bring engaging content to millions of people every week whenever and wherever they want it. This exceptional content, reach and scope offers advertisers and marketers compelling solutions to effectively reach target audiences. Our expertise in home delivery and expanding distribution network powers Postmedia Parcel Services. For more information, visit www.postmedia.com, www.postmediasolutions.com and www.postmediaparcelservices.com.

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Forward-Looking Information

This news release may include information that is “forward-looking information” under applicable Canadian securities laws. The Company has tried, where possible, to identify such information and statements by using words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “may,” “will,” “could,” “would,” “should” and similar expressions and derivations thereof in connection with any discussion of future events, trends or prospects or future operating or financial performance. Forward-looking statements in this news release include statements with respect the implementation and results of the Company’s transformation initiatives, continued benefits of historical results into future periods, the realization of anticipated cost savings, the identification and undertaking of ongoing cost savings initiatives. By their nature, forward-looking information and statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks and uncertainties include, among others: competition from digital and other forms of media; the effect of economic conditions on advertising revenue; the ability of the Company to build out its digital media and online businesses; the failure to maintain current print and online newspaper readership and circulation levels; the realization of anticipated cost savings; possible damage to the reputation of the Company’s brands or trademarks; possible labour disruptions; possible environmental liabilities, litigation and pension plan obligations; fluctuations in foreign exchange rates and the prices of newsprint and other commodities.

For a complete list of our risk factors please refer to the section entitled “Risk Factors” contained in our annual management’s discussion and analysis for the years ended August 31, 2025 and 2024. Although the Company bases such information and statements on assumptions believed to be reasonable when made, they are not guarantees of future performance and actual results of operations, financial condition and liquidity, and developments in the industry in which the Company operates, may differ materially from any such information and statements in this press release. Given these risks and uncertainties, undue reliance should not be placed on any forward-looking information or forward-looking statements, which speak only as of the date of such information or statements. Other than as required by law, the Company does not undertake, and specifically declines, any obligation to update such information or statements or to publicly announce the results of any revisions to any such information or statements.

For more information:

Media Contact

Communications

inquiries@postmedia.com

Investor Contact

John Bode

Executive Vice President, Chief Financial Officer and Chief Transformation Officer

investors@postmedia.com

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Postmedia Network Canada Corp. Consolidated Statements of Operations (UNAUDITED)

(In thousands of Canadian dollars, except per share amounts)
	For the three months ended
	November 30, 2025	November 30, 2024
Revenues
Advertising	56,437	56,473
Circulation	33,720	35,936
Parcel services	16,706	13,149
Other	5,012	4,712
Total revenues	111,875	110,270
Expenses
Compensation	36,007	35,608
Newsprint	2,542	2,872
Distribution	39,127	37,514
Production	11,919	10,639
Other operating	17,185	18,167
Operating income before depreciation, amortization, impairment and restructuring and other	5,095	5,470
Depreciation	3,128	3,419
Amortization	560	556
Impairment	188	-
Restructuring and other	1,055	2,026
Operating income (loss)	164	(531)
Interest expense	11,458	10,743
Foreign currency exchange losses	8,201	12,914
Net financing expense relating to employee benefit plans	262	289
Loss on disposal of right of use assets	110	250
Loss (gain) on derivative financial instruments and financial assets at fair value through profit and loss	512	(242)
Net loss after income taxes	(20,379)	(24,485)
Loss per share
Basic and diluted	$(0.21)	$(0.25)

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Postmedia Network Canada Corp.
Consolidated Statements of Financial Position
(UNAUDITED)

(In thousands of Canadian dollars)	As at November 30, 2025	As at August 31, 2025
Assets
Current Assets
Cash	5,330	3,278
Trade and other receivables	66,671	59,169
Inventory	1,497	1,615
Prepaid expenses and other assets	6,439	6,449
Total current assets	79,937	70,511
Non-Current Assets
Property and equipment	21,206	22,986
Intangible assets	15,101	15,313
Right of use assets	13,833	14,543
Derivative financial instruments and other assets	4,103	4,672
Total assets	134,180	128,025
Liabilities and Deficiency
Current Liabilities
Accounts payable and accrued liabilities	73,341	53,312
Provisions	1,124	1,253
Contract Liabilities	15,256	16,127
Current portion of lease obligations	7,753	7,742
Total current liabilities	97,474	78,434
Non-Current Liabilities
Long-term debt	398,470	388,964
Employee benefit obligations	29,933	30,084
Lease obligations	11,672	12,775
Other long-term liabilities	16,046	16,753
Total liabilities	553,595	527,010
Deficiency
Capital stock	820,357	820,357
Contributed surplus	20,411	19,960
Deficit	(1,260,183)	(1,239,302)
Total deficiency	(419,415)	(398,985)
Total liabilities and deficiency	134,180	128,025

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Postmedia Network Canada Corp.
Consolidated Statements of Cash Flows
(UNAUDITED)

(In thousands of Canadian dollars)	For the three months ended
	November 30, 2025	November 30, 2024
Cash Generated (Utilized) by:
Operating Activities
Net loss after income taxes	(20,379)	(24,485)
Items not affecting cash:
Depreciation	3,128	3,419
Amortization	560	556
Impairment	188	-
Loss (gain) on derivative financial instruments and financial assets at fair value through profit and loss	512	(242)
Non-cash interest	10,935	9,822
Loss on disposal of right of use assets	110	250
Non-cash foreign currency exchange losses	7,758	12,951
Share-based compensation plans	451	168
Net financing expense relating to employee benefit plans	262	289
Employee benefit plan funding in excess of compensation expense	(646)	(761)
Net change in non-cash operating accounts	1,599	7,523
Cash flows from operating activities	4,478	9,490
Investing Activities
Purchases of property and equipment	(242)	(127)
Purchases of intangible assets	(348)	(376)
Cash flows used in investing activities	(590)	(503)
Financing activities
Advances from asset-based lending facility	2,105	1,376
Repayment of asset-based lending facility	(1,422)	-
Repayment of short term promissory note	-	(5,000)
Repayment of contingent consideration	(920)	-
Lease payments	(1,599)	(1,614)
Cash flow used in financing activities	(1,836)	(5,238)
Net change in cash for the period	2,052	3,749
Cash at beginning of period	3,278	2,454
Cash at end of period	5,330	6,203
Supplemental disclosure of operating cash flows
Interest paid	523	921