EQ Inc. Reports Second Quarter Financial Results

TORONTO, ON / ACCESSWIRE / August 22, 2024 / EQ Inc. (TSXV:EQ), a leader in AI and data-driven software solutions, announced its second-quarter financial results for 2024. The company reported a 65% increase in revenue sequentially, reaching approximately $2.6 million, as clients sought AI and data optimization solutions. This growth highlights EQ's market differentiation and broad industry interest in its unique data offerings.

Gross margin rose to 43%, marking an improvement over the previous quarter and year. Adjusted EBITDA loss improved by 67% compared to the previous quarter, reducing to $0.2 million. This progress is credited to focused efforts on generating recurring revenue and aligning costs.

Subsequent to the quarter's end, EQ secured a $1 million non-revolving subordinated secured debt financing with the Business Development Bank of Canada. The loan bears interest at the BDC base rate plus a 2.50% margin. Additionally, a $1.25 million legal settlement post-quarter contributed $1.0 million in cash flow to the company.