Reklaim Achieves 40% Year-to-Date Revenue Growth, Retires Debenture, and Strengthens Cash Position

Core Insights - Reklaim Ltd. reported a revenue increase of 18% year-over-year for Q2 2025, reaching $1.30 million, marking the fifth consecutive quarter of growth [5] - The company eliminated its debenture, reducing liabilities by over $800,000 and removing future interest expenses, which allows for a cleaner balance sheet [5][4] - Reklaim launched new products, including Reklaim Protect and Reklaim Jackpot, aimed at enhancing consumer engagement and establishing new revenue streams [5][4] Financial Highlights - Revenue for Q2 2025 was $1.30 million, up from $1.10 million in Q2 2024 [5] - Gross margin decreased to 77% from 81% in Q2 2024 due to investments in product launches and temporary distribution platform usage [5] - EBITDA improved to ($140,634) from ($332,776) in Q2 2024 [5] - Cash balance increased by 19.6% to $419,000 from Q1 2025 [5] Operational and Strategic Highlights - The company introduced Reklaim Protect, an AI subscription-based privacy service, in May 2025, creating a new recurring revenue stream [5] - With the enactment of privacy laws in eight additional U.S. states, a total of 20 states now have comprehensive data privacy frameworks, increasing demand for Reklaim's solutions [5] - The Reklaim Jackpot initiative was launched in July 2025 to reward consumer participation, enhancing engagement and retention [5] - The Shares for Redemption (S4R) program allows consumers to redeem points for common shares, aligning consumer rewards with long-term shareholder interests [5] Miscellaneous - Reklaim engaged Independent Trading Group Inc. for market-making services to improve liquidity and maintain an orderly market for its shares [6] - The company purchased 105,000 common shares at an average price of $0.09 under its normal course issuer bid for cancellation [5]