What you need to know: • Sabio reported Q3/25 financial results that missed our expectations, with revenue coming in at $8.2M (-49% YoY), compared to our estimate of $11.2M. Adjusted EBITDA was ($2.2M) vs. our expected $1.3M. • While the quarter was weak, management remains bullish on 2026, stating that its Q1 pipeline is up 60% YoY. • We urge investors to look ahead to 2026, where we are expecting 49% YoY revenue growth and 8% EBITDA margins. Yesterday, after market close, Sabio Holdings Inc. (SBIO:TSXV, SABOF:OTC) reported Q3 financial results that missed our expectations. Management attributed the weak quarter to 2025 being a non-political year and clients shifting spending to prior quarters. However, management remained highly positive on 2026, stating that it has built a strong foundation for future growth, taking advantage of the upcoming political spending. We are maintaining our BUY rating and C$1.00/share target price on Sabio Holdings. Q3/25 Highlights • Revenue came in at $8.2M (-49% YoY), missing our estimate of $11.2M. This was comprised of $6.2M in ad-supported streaming revenue (-49% YoY), $1.8M in mobile display revenue (-47% YoY), and $0.1M in other revenue (-50% YoY). Management attributed the decline to 2025 being a non-political year, where budgets shifted into early quarters ahead of the anticipated tariff impacts. Gross revenue was -11% YoY after removing political and advocacy. • Management highlighted that ad-support gross revenue was up 2% YoY when excluding political and advocacy revenue. Furthermore, programmatic scale and international expansion (+240% YoY) drove 40% of the gross revenue mix in Q3. This highlights that the business is becoming more diversified. • Sabio experienced a 54% increase in branded logos in Q3, with recurring revenue remaining at 85% over the nine-month period. 70% of its top 2024 customers increased their spend YTD, reflecting deepening client relationships. • Gross margin was 59%, below our estimate of 61% and 63% in Q3/24. • Adjusted EBITDA was ($2.2M), which missed our forecast of $1.3M. This compares to a 16% adjusted EBITDA margin in Q3/24. This reflects the shift in revenue mix and ongoing investments into growth initiatives. As a percent of revenue, S&M was 51%, G&A was 22%, and R&T was 22%. • Net income of ($3.3M) vs. our estimate of $0.7M. • Sabio ended the quarter with $2.0M in cash and $6.9M in debt, prior to completing its $1.3M equity financing on November 12th.