Route1 Reports Fiscal Year 2025 Results and Continued Transition Toward Recurring, Lifecycle-Based Revenue

TORONTO, ON / ACCESS Newswire / April 30, 2026 / Route1 Inc . ("Route1" or the "Company") (TSXV:ROI), a provider of technology-enabled services focused on parking operations, public safety, and mobility, today announced its financial results for the three and twelve-month periods ended December 31, 2025.

Fiscal 2025 was a transition year. The Company focused on reducing reliance on one-time project activity and building a model based on recurring support, software licensing, operational engagement, and account expansion. Early results of this transition are beginning to appear in customer engagement, support contract growth, and demand for Route1's operational improvement capabilities.

Fiscal 2025 and Q4 Highlights

• Expanded deployment of Route1 ABI and introduced "Mr. Parking" in response to increasing demand for operational performance and accountability within customer environments

• Grew quarterly ALPR support contract revenue to exceed USD $310,000, representing annualized recurring revenue of approximately USD $1.25 million

• Continued growth in ALPR end users and average support contract value

• Expanded Route1's role within customer environments beyond deployment into ongoing operational performance

• Monetized employee retention credits totaling USD $549,000 for fiscal 2025

• Completed a non-brokered private placement generating gross proceeds of approximately $328,000

Q4 2025 Commentary

Revenue in Q4 2025 was $2.6 million compared to $3.9 million in Q4 2024, reflecting variability in device and project-based activity.

Consistent with prior periods, hardware and project revenue continued to fluctuate based on timing of customer deployments. In contrast, the Company's support and services revenue remained more stable and is increasingly reflective of its long-term operating model.

Route1 continues to prioritize expansion of recurring revenue within its existing customer base, focusing on increasing the scope and value of each customer relationship over time rather than maximizing one-time transactional revenue. This approach reflects how customers are now engaging Route1, with increasing demand for operational improvement that extends beyond system deployment.

The Company expects variability in hardware revenue to continue, while recurring support, software licensing and services revenue represents a growing portion of total revenue. This shift in revenue mix is expected to materially improve the predictability, visibility, and quality of revenue over time.

The Company is already seeing this shift in customer activity, with increasing engagement beyond traditional support and deployment.

Business Model and Recurring Revenue Expansion

Route1's operating model is built on long-term lifecycle engagement rather than one-time system deployment.

Within this model, the Company:

• Deploys and integrates ALPR infrastructure

• Provides ongoing support, monitoring, and maintenance

• Works directly with operators in live environments

• Expands its role over time into operational performance and decision support

This approach shifts value from deployment activity to ongoing operational outcomes and performance accountability.

The Company is also evolving its operating model to support broader deployment and partner structures designed to scale recurring revenue across multiple customer environments.

This shift changes Route1's role from a system provider to an embedded participant in operational performance and outcomes.

"Mr. Parking" and Expansion Within Existing Accounts

As part of this evolution, Route1 introduced "Mr. Parking" in April 2026 as an operational capability deployed within existing customer engagements.

The capability is deployed within existing customer relationships and is not positioned as a standalone system. Instead, it is integrated into Route1's support and operational model, where the Company maintains continuous involvement in client environments.

Across the parking technology market, much of the discussion remains focused on deployment, system features and data access. Route1's view is that this framing misses the core issue. Much of the sector remains focused on system deployment, while the primary challenge in live environments is whether performance is being measured, managed, and improved over time.

"Mr. Parking" is designed to address this gap by enabling continuous performance management within existing environments. This reflects a broader shift in how customers are evaluating technology investments, with increased focus on measurable outcomes and return on existing infrastructure.

Embedded in the Lifecycle, Not Sold as Software

"Mr. Parking" is deployed within Route1's lifecycle model. It is configured to each client's environment and operates using live data generated through existing systems and workflows.

It is not accessed as a standalone application. It is deployed as part of ongoing engagement, with outputs delivered directly into existing operational workflows used by supervisors, analysts, and enforcement teams.

As a result, Route1's role becomes more embedded in the client's day-to-day operations, increasing the durability of the customer relationship over time.

Expanding Across the Operation

Initial deployment of "Mr. Parking" is focused on enforcement and patrol operations. However, the underlying framework is designed to extend across additional operational areas including:

• Violation processing workflows

• Customer communication and response management

• Other back-office and administrative functions

As these applications are introduced, the capability is expanded within the same customer relationship, further embedding Route1 within the client's operating environment and increasing the value of each customer relationship and expanding recurring revenue over time.

Market Context: From Deployment to Performance

Across North America, ALPR deployment is largely complete and the remaining challenge is operational performance. This shift is increasingly driven by governance, compliance, and accountability requirements within customer environments, where operators are expected to demonstrate measurable outcomes rather than simply deploying technology.

Route1's direct engagement in live environments continues to show:

• Variability in enforcement output

• Missed revenue opportunities

• Limited ability to measure and defend outcomes

These conditions reinforce a consistent conclusion: deployment alone does not improve operations. In many cases, performance degrades after systems go live.

Q4 2025 FINANCIAL RESULTS

1. Before stock-based compensation. The last quarter of stock-based compensation expenses was Q4-24.

2. Includes gain or loss on asset disposal, stock-based compensation expense, gain on sale of employee retention credits, interest expense, income tax recovery, foreign exchange loss or gain, other expenses.

1. Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, stock-based compensation, and other costs. Adjusted EBITDA does not have any standardized meaning prescribed under IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. Adjusted EBITDA allows Route1 to compare its operating performance over time on a consistent basis.

1. Route1 ABI license revenue is included in this line

FISCAL YEAR 2025 (FY 2025)