^{}[] P

^{}[] POSTMEDIA

Postmedia Reports Third Quarter Results

July 9, 2026 (TORONTO) – Postmedia Network Canada Corp. ("Postmedia" or the "Company") today released financial information for the three and nine months ended May 31, 2026.

"The third quarter results reflect continued momentum in our diversified revenue streams, supported by the contribution of the recently acquired accelerate360 Canada business and ongoing growth in parcel delivery," said Andrew MacLeod, President and Chief Executive Officer of Postmedia. "At the same time, the continued evolution of advertising and circulation revenue reinforces the importance of taking a proactive and disciplined approach as we adapt to the changes reshaping the broader media industry."

"We remain focused on integrating new capabilities across the business, managing costs responsibly and advancing our strategy to build a more diversified and sustainable Postmedia. This includes our ongoing digital transformation, with a revitalized digital platform beginning to roll out across our network to strengthen the reader experience, deepen audience engagement and better connect communities with the journalism that matters to them."

Third Quarter Operating Results

Revenue for the quarter was $146.7 million as compared to $109.2 million in the same period in the prior year, representing an increase of $37.5 million (34.4%). The revenue increase was primarily due to increases in product distribution revenue of $41.2 million, other revenue of $2.3 million (40.7%) and parcel revenue of $2.1 million (16.4%), partially offset by decreases in advertising revenue of $6.4 million (11.6%) and circulation revenue of $1.7 million (4.8%).

Total operating expenses excluding depreciation, amortization, restructuring and other increased $40.3 million, or 38.8%, for the quarter ended May 31, 2026, relative to the same period in the prior year. The increase relates entirely to the acquisition of accelerate360 Canada, which added $44.4 million in expenses during the quarter. Excluding the acquisition, expenses were down $4.1 million.

Operating income before depreciation, amortization and restructuring and other in the quarter ended May 31, 2026 was $2.6 million, a decrease of $2.8 million relative to the same period in the prior year. The decrease is due to an increase in operating expenses excluding depreciation, amortization, restructuring and other, partially offset by an increase in total revenue.

Net loss in the quarter ended May 31, 2026 was $35.4 million, as compared to a net income of $7.9 million in the same period in the prior year. The increase in net loss was primarily the result of a decrease in operating income before depreciation, amortization, restructuring and other, an increase in foreign currency exchange losses, depreciation, restructuring and other, and interest expense.

Year to Date Operating Results

Revenue for the nine months ended May 31, 2026 was $368.5 million as compared to $330.3 million in the same period in the prior year, representing an increase of $38.2 million (11.6%). The revenue increase was primarily due to increases in product distribution revenue of $41.2 million, parcel revenue of $9.1 million (23.1%), and other revenue of $5.6 million (25.0%), partially offset by decreases in advertising revenue of $11.2 million (7.0%) and circulation revenue of $6.4 million (6.0%).

Total operating expenses excluding depreciation, amortization, impairment and restructuring and other increased $40.5 million, or 13.1%, for the nine months ended May 31, 2026, relative to the same period in the prior year. The increase relates entirely to the acquisition of accelerate360 Canada, which added $44.4 million in expenses to the quarter. Excluding the acquisition, expenses were down $3.9 million.

Operating income before depreciation, amortization, impairment and restructuring and other for the nine months ended May 31, 2026 was $18.4 million, a decrease of $2.2 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 operating expenses excluding depreciation, amortization, impairment and restructuring and other, partially offset by an increase in total revenue.

Net loss in the nine months ended May 31, 2026 was $52.3 million, as compared to a net loss of $32.6 million in the same period in the prior year. The increase in net loss was primarily the result of an increase in depreciation, restructuring and other, interest expense, loss on disposal of right of use assets and assets held-for-sale, and a decrease in operating income before depreciation, amortization, impairment and restructuring and other, partially offset by a decrease in foreign current exchange losses.

Acquisition of accelerate360 Canada Inc.

On March 2, 2026, the Company completed the purchase (the "Accelerate360 Purchase Transaction") of all issued and outstanding shares of accelerate360 Canada Inc., pursuant to the Share Purchase Agreement dated February 19, 2026 ("SPA"). The closing date of the acquisition of accelerate360 Canada was March 2, 2026 ("Closing Date"). The Company intends to continue accelerate360 Canada's wholesale distribution and merchandising operations across Canada in furtherance of the Company's commitment to logistics excellence. The purchase price of accelerate360 Canada includes cash consideration of $2 million, subject to a working capital adjustment and an earnout payment of up to a maximum of $2 million if certain targets are met over a two-year period.

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.

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
[email protected]

Investor Contact
John Bode
Executive Vice President, Chief Financial Officer and Chief Transformation Officer
[email protected]

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

(In thousands of Canadian dollars, except per share amounts)

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

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