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 “Firm”) (TSXV:ROI), a supplier of technology-enabled companies targeted on parking operations, public security, and mobility, at this time introduced its monetary outcomes for the three and twelve-month durations ended December 31, 2025.

Fiscal 2025 was a transition 12 months. The Firm targeted on lowering reliance on one-time mission exercise and constructing a mannequin primarily based on recurring assist, software program licensing, operational engagement, and account enlargement. Early outcomes of this transition are starting to look in buyer engagement, assist contract development, and demand for Route1’s operational enchancment capabilities.

Fiscal 2025 and This autumn Highlights

• Expanded deployment of Route1 ABI and launched “Mr. Parking” in response to growing demand for operational efficiency and accountability inside buyer environments

• Grew quarterly ALPR assist contract income to exceed USD $310,000, representing annualized recurring income of roughly USD $1.25 million

• Continued development in ALPR finish customers and common assist contract worth

• Expanded Route1’s function inside buyer environments past deployment into ongoing operational efficiency

• Monetized worker retention credit totaling USD $549,000 for fiscal 2025

• Accomplished a non-brokered non-public placement producing gross proceeds of roughly $328,000

This autumn 2025 Commentary

Income in This autumn 2025 was $2.6 million in comparison with $3.9 million in This autumn 2024, reflecting variability in gadget and project-based exercise.

Per prior durations, {hardware} and mission income continued to fluctuate primarily based on timing of buyer deployments. In distinction, the Firm’s assist and companies income remained extra secure and is more and more reflective of its long-term working mannequin.

Route1 continues to prioritize enlargement of recurring income inside its current buyer base, specializing in growing the scope and worth of every buyer relationship over time relatively than maximizing one-time transactional income. This strategy displays how clients at the moment are participating Route1, with growing demand for operational enchancment that extends past system deployment.

The Firm expects variability in {hardware} income to proceed, whereas recurring assist, software program licensing and companies income represents a rising portion of whole income. This shift in income combine is predicted to materially enhance the predictability, visibility, and high quality of income over time.

The Firm is already seeing this shift in buyer exercise, with growing engagement past conventional assist and deployment.

Enterprise Mannequin and Recurring Income Enlargement

Route1’s working mannequin is constructed on long-term lifecycle engagement relatively than one-time system deployment.

Inside this mannequin, the Firm:

• Deploys and integrates ALPR infrastructure

• Gives ongoing assist, monitoring, and upkeep

• Works instantly with operators in reside environments

• Expands its function over time into operational efficiency and resolution assist

This strategy shifts worth from deployment exercise to ongoing operational outcomes and efficiency accountability.

The Firm can be evolving its working mannequin to assist broader deployment and accomplice buildings designed to scale recurring income throughout a number of buyer environments.

This shift adjustments Route1’s function from a system supplier to an embedded participant in operational efficiency and outcomes.

“Mr. Parking” and Enlargement Inside Present Accounts

As a part of this evolution, Route1 launched “Mr. Parking” in April 2026 as an operational functionality deployed inside current buyer engagements.

The aptitude is deployed inside current buyer relationships and isn’t positioned as a standalone system. As a substitute, it’s built-in into Route1’s assist and operational mannequin, the place the Firm maintains steady involvement in shopper environments.

Throughout the parking expertise market, a lot of the dialogue stays targeted on deployment, system options and knowledge entry. Route1’s view is that this framing misses the core subject. A lot of the sector stays targeted on system deployment, whereas the first problem in reside environments is whether or not efficiency is being measured, managed, and improved over time.

“Mr. Parking” is designed to deal with this hole by enabling steady efficiency administration inside current environments. This displays a broader shift in how clients are evaluating expertise investments, with elevated give attention to measurable outcomes and return on current infrastructure.

Embedded within the Lifecycle, Not Bought as Software program

“Mr. Parking” is deployed inside Route1’s lifecycle mannequin. It’s configured to every shopper’s surroundings and operates utilizing reside knowledge generated by way of current methods and workflows.

It isn’t accessed as a standalone software. It’s deployed as a part of ongoing engagement, with outputs delivered instantly into current operational workflows utilized by supervisors, analysts, and enforcement groups.

Consequently, Route1’s function turns into extra embedded within the shopper’s day-to-day operations, growing the sturdiness of the shopper relationship over time.

Increasing Throughout the Operation

Preliminary deployment of “Mr. Parking” is concentrated on enforcement and patrol operations. Nevertheless, the underlying framework is designed to increase throughout extra operational areas together with:

• Violation processing workflows

• Buyer communication and response administration

• Different back-office and administrative capabilities

As these functions are launched, the aptitude is expanded throughout the similar buyer relationship, additional embedding Route1 throughout the shopper’s working surroundings and growing the worth of every buyer relationship and increasing recurring income over time.

Market Context: From Deployment to Efficiency

Throughout North America, ALPR deployment is essentially full and the remaining problem is operational efficiency. This shift is more and more pushed by governance, compliance, and accountability necessities inside buyer environments, the place operators are anticipated to display measurable outcomes relatively than merely deploying expertise.

Route1’s direct engagement in reside environments continues to indicate:

• Variability in enforcement output

• Missed income alternatives

• Restricted skill to measure and defend outcomes

These situations reinforce a constant conclusion: deployment alone doesn’t enhance operations. In lots of circumstances, efficiency degrades after methods go reside.

This autumn 2025 FINANCIAL RESULTS

1. Earlier than stock-based compensation. The final quarter of stock-based compensation bills was This autumn-24.

2. Contains acquire or loss on asset disposal, stock-based compensation expense, acquire on sale of worker retention credit, curiosity expense, revenue tax restoration, overseas trade loss or acquire, different bills.

1. Adjusted EBITDA is outlined as earnings earlier than curiosity, revenue taxes, depreciation and amortization, stock-based compensation, and different prices. Adjusted EBITDA doesn’t have any standardized which means prescribed below IFRS and is subsequently unlikely to be akin to related measures offered by different firms. Adjusted EBITDA permits Route1 to check its working efficiency over time on a constant foundation.

1. Route1 ABI license income is included on this line

FISCAL YEAR 2025 (FY 2025)

1. Internet working capital adjusted for (a) financial institution indebtedness and notes payable, (b) contract liabilities, and (c) working leases.

PRIVATE PLACEMENT

The Firm accomplished a personal placement in December 2025 and issued 4,376,665 Models for mixture gross proceeds of roughly $328,250. Firm administration subscribed for Models below the Providing for a complete of $68,000, representing roughly 21% of the Providing.

Every Unit consisted of 1 frequent share within the capital of the Firm (a “Frequent Share”) and one frequent share buy warrant (a “Warrant”). Every Warrant entitles the holder to buy one Frequent Share at a value of $0.10 for a interval of 18 months from the problem date of the Models. All securities issued pursuant to the providing have been topic to a four-month maintain interval that has now expired.

The Firm is utilizing the online proceeds of the Providing to fund the event of Route1’s Actionable Enterprise Intelligence (“ABI”) software program software and “Mr. Parking”.

MONETIZING ROUTE1’S EMPLOYEE RETENTION CREDITS

The Worker Retention Credit score (“ERC”), often known as the Worker Retention Tax Credit score (“ERTC”), was designed to assist companies recuperate from the COVID-19 pandemic. The general purpose of this system was to encourage employers to retain workers throughout pandemic-related enterprise shutdowns and slowdowns.

First launched in March 2020 as a part of the Coronavirus Help, Reduction, and Financial Safety Act, the ERC has been up to date twice since its unique creation. In November 2021, the ERC program expired early with the signing of the Infrastructure Funding and Jobs Act. The change restricted ERC claims to wages paid earlier than October 1, 2021, apart from restoration startup companies. Companies have been capable of retroactively declare ERC by amending their 2020 or 2021 tax returns, which means employers have been capable of declare the credit score for actions in the course of the pandemic on their tax returns up till the 12 months 2024.

With the assistance of a third-party skilled to help in its submission, Route1 filed ERCs within the quantity of USD $1,320,002. The credit have been for Route1’s wholly owned U.S. subsidiaries Route 1 Safety Company, Group Cellular Int’l, LLC (“GMI”) and Moveable Laptop Techniques, Inc. (“PCS”) referring to wages paid to workers between April 1, 2020 and September 30, 2021.

On June 18, 2025, Route1 offered USD $467,030 of its ERCs (the “First ERC Declare”) to a personal fairness fund. Route1 acquired cost of USD $179,807 and topic to the US authorities paying out the First ERC Declare, will obtain a further USD $65,384. The non-public fairness fund bought the First ERC Declare at a reduction to the face worth and required a further quantity to be held again till the First ERC Declare is paid out by the US authorities. Route1 additionally incurred skilled charges to finish the transaction. In sure circumstances, together with conditions during which the Inside Income Service disallows some or all of Route1’s ERC claims, the non-public fairness fund could trigger Route1 to refund the proceeds paid. Ought to that happen, some or the entire skilled charges incurred will even be reimbursed.

On August 8, 2025, Route1 offered USD $468,802 of its ERCs (the “Second ERC Declare Quantity”) to a personal fairness fund. Route1 acquired cost of USD $167,836 and topic to the US authorities paying out the ERC Declare Quantity, will obtain a further USD $58,122. The non-public fairness fund bought the Second ERC Declare Quantity at a reduction to the face worth and required a further quantity to be held again till the Second ERC Declare Quantity is paid out by the US authorities. Route1 additionally incurred skilled charges to finish the transaction.

FINANCIAL REPORTING UPDATE

Route1 doesn’t intend to host a shareholder name in reference to its year-end outcomes.

The Firm expects to host a shareholder name in mid-Could 2026 following the discharge of its first quarter 2026 monetary outcomes. Administration expects to offer extra commentary at the moment relating to operational progress and early observations following the launch of “Mr. Parking.”

About Route1 Inc.

Route1 supplies operational intelligence and safe knowledge options for public sector and demanding infrastructure operators. The Firm’s ABI platform helps structured intelligence and operational enchancment initiatives throughout mobility, parking enforcement, public security and sensible infrastructure environments. Route1 trades on the TSX Enterprise Trade below the image ROI.

For Extra Info, Contact:
Tony Busseri
President and Chief Govt Officer
+1 480 578-0287
[email protected]

This information launch, required by relevant Canadian legal guidelines, doesn’t represent a suggestion to promote or a solicitation of a suggestion to purchase any of the securities in the USA. The securities haven’t been and won’t be registered below the USA Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities legal guidelines and will not be supplied or offered inside the USA or to U.S. Individuals until registered below the U.S. Securities Act and relevant state securities legal guidelines or an exemption from such registration is obtainable.

Neither the TSX Enterprise Trade nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Trade) accepts duty for the adequacy or accuracy of this launch.

© 2026 Route1 Inc. All rights reserved. No a part of this doc could also be reproduced, transmitted or in any other case utilized in complete or partly or by any means with out prior written consent of Route1 Inc. See https://www.route1.com/terms-of-use/ for discover of Route1’s mental property.

This information launch could include statements that aren’t present or historic factual statements that will represent forward-looking statements or future oriented monetary info. These statements are primarily based on sure elements and assumptions, together with expectations relating to the granting of the patent and the phrases thereof, the launch date of “Mr. Parking”, the outcomes of improvement and testing, market traits and the continuation of such traits, the anticipated development within the worth of assist contracts for the LPR enterprise, competitors for expert personnel, anticipated monetary efficiency and subscription-based income, enterprise prospects, technological developments, improvement actions and like issues. Whereas Route1 considers these elements and assumptions to be cheap, primarily based on info at present accessible, they could show to be incorrect. These statements contain dangers and uncertainties, together with however not restricted to the market demand for the Firm’s services and products and danger elements described in reporting paperwork filed by the Firm. Precise outcomes may differ materially from these projected on account of these and different dangers and shouldn’t be relied upon as a prediction of future occasions. The Firm undertakes no obligation to replace any forward-looking assertion or future-oriented monetary info to replicate occasions or circumstances after the date on which such assertion is made, or to replicate the prevalence of unanticipated occasions, besides as required by legislation. Estimates used on this presentation are from Firm sources. Previous or forecasted efficiency is just not a assure of future efficiency and readers mustn’t depend on historic outcomes or forward-looking statements or future oriented monetary info as an assurance of future outcomes.

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SOURCE: Route1, Inc.