Q3 FY2026 Financial Key Items (all comparisons to the prior year quarter)
Revenues from operations were $5,018,127 compared to $4,550,421, an increase of over 10% which was driven by an increase in revenue from the insurance distribution business
Operating income from continuing operations of $299,637 compared to $(124,345) in the prior year quarter
Net income was $268,692 or $0.04 per share in the quarter compared to $(164,867) or $(0.02) per share in the prior year quarter
During the quarter the Company repurchased 117,962 shares, and subsequent to the end of quarter the Company has repurchased an additional 295,959 shares as of January 31, 2026. Repurchases under the program may be made through privately negotiated transactions when the Company is contacted directly or open market transactions (please see the Company's April 2, 2025, press release for more information and important disclosures). The April 2 press release is available on the Company's website
Management Comments Timothy M. Klusas, TMA's Chief Executive Officer, commented, "We were pleased with the results of this quarter, especially as we were able to show some of the benefits of the investments we have been making in the insurance business. In the quarter we added to our marketing team and continued to invest in technology to communicate with our agencies and provide insights.
As our business continued to evolve, in a previous quarter (ending December 2024) we elected to acknowledge the changing nature of our reimbursement and marketing revenues by recognizing them over their respective projected lives (often the calendar year) instead of when agreed upon and billed. Historically the company treated non-refundable reimbursement and marketing fee revenue from carriers as earned when the agreed upon amount was invoiced. We acknowledged any timing differences of these payments as deferred revenue on the balance sheet. This quarter is the fourth quarter and now a full year since we made this change and it is also reflected in the fiscal year-to-date results.
Although the construction business had a better quarter than in the previous year period, it continued to be adversely affected by delays at a large project. These delays had the added effect of preventing us from being able to work on other projects. While we were better able to manage costs in relation to revenues than last year, this quarter continued to be a challenge."
Third Quarter Fiscal Year 2026 Financial Review
Revenues were $5,018,127 compared to $4,550,421 in the prior year quarter. An increase in revenue in the insurance distribution business offset a slight decline in revenues in the construction business.
Net operating revenue (gross profit) for the quarter was $1,138,892 compared to net operating revenue of $703,116 in the prior year quarter for an increase of $435,776. The insurance distribution business accounted for most of the increase in gross profit through improved performance in the annuity business and the recalibration of marketing and fee revenue from carriers.
Operating expenses increased this quarter from the prior year quarter, $839,255 compared to $827,462. Increases in compensation expenses were offset by decreases in office and administrative expenses and professional fees, as the Company hired people that previously served as its outsourced bookkeeping and administrative staff. Stock-based compensation expense increased from the prior year quarter offsetting some of the above-mentioned benefits.
The Company reported operating income from continuing operations of $299,637 compared to $(124,345), in the prior year quarter, with differences due to factors discussed above.
Operating EBITDA (excluding investment portfolio income) of $347,951 was an increase from the prior year quarter of $(58,379). A note reconciling operating EBITDA to operating income can be found at the end of this release.
Investment gain (loss), net (from non-operating investment portfolio) for the quarter was $60,684 as compared with $(48,095) in the previous year quarter.
Net income was $268,692, or $0.04 per share, compared to $(164,897) or $(0.02) per share in the previous year quarter.
During the first fiscal quarter, on April 2, 2025, the Company announced that its Board of Directors had authorized a share repurchase program to purchase up to 800,000 shares of the Company's issued and outstanding common stock, effective immediately and concluding March 31, 2026. As of January 31, the Company had repurchased 683,428 shares under this program. The April 2 announcement followed the successful completion of an 800,000 share repurchase program announced in October 2024 and completed March 2025.
Balance Sheet Information
TMA's balance sheet on December 31, 2025, reflected cash and cash equivalents of $1.4 million, working capital of $5.5 million, and shareholders' equity of $5.8 million, compared to cash and cash equivalents of $1.9 million, working capital of $5.7 million, and shareholders' equity of $5.9 million as of December 31, 2024.
About The Marketing Alliance, Inc.
Headquartered in St. Louis, MO, TMA provides support to independent insurance brokerage agencies, with a goal of integrating insurance and "insuretech" engagement platforms to provide members value-added services on a more efficient basis than they can achieve individually.
Investor information can be accessed through the shareholder section of TMA's website at: http://www.themarketingallianceinc.com.
TMA's common stock is quoted on the OTC Markets (http://www.otcmarkets.com) under the symbol "MAAL".
Forward Looking StatementsInvestors are cautioned that forward-looking statements involve risks and uncertainties that may affect TMA's business and prospects. Examples of forward-looking statements include, among others, statements we make regarding our expectations of growth based upon our investments in our insurance business, our stock repurchase program, our plans to reduce expenses, and our ability to generate earnings, or reduce expenses, from our construction business. Any forward-looking statements contained in this press release represent our estimates, expectations or intentions only as of the date hereof, or as of such earlier dates as are indicated, and should not be relied upon as representing our views as of any subsequent date. These statements involve a number of risks and uncertainties, including, but not limited to, expectations of the economic environment, material adverse changes in economic conditions in the markets we serve and in the general economy; the ways that insurance carriers may react in their underwriting policies and procedures to the continuing risks they perceive from public health matters; our reliance on a limited number of insurance carriers and any potential termination of those relationships or failure to develop new relationships; privacy and cyber security matters and our ability to protect confidential information; future state and federal regulatory actions and conditions in the states in which we conduct our business; our ability to work with carriers on marketing, distribution and product development; pricing and other payment decisions and policies of the carriers in our insurance distribution business, changes in the public securities markets that affect the value of our investment portfolio; and weather and environmental conditions in the areas served by our construction business. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. .
Contact:
The Marketing Alliance, Inc.
-OR-
The Equity Group Inc.
Timothy M. Klusas, President
Jeremy Hellman, Vice President
(314) 275-8713
(212) 836-9626
[email protected]www.TheMarketingAlliance.com
[email protected]
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
Nine Months Ended
December 31,
December 31,
2025
2024
2025
2024
Insurance commission and fee revenue
$
4,793,365
$
4,273,578
$
13,865,347
$
13,025,595
Construction revenue
224,762
276,843
681,506
966,565
Total revenues
5,018,127
4,550,421
14,546,853
13,992,160
Insurance distributor related expenses:
Distributor bonuses and commissions
3,119,170
2,862,569
9,266,468
8,736,928
Business processing and distributor costs
495,326
604,305
1,554,083
1,441,837
Depreciation
864
934
2,592
5,768
3,615,360
3,467,808
10,823,143
10,184,533
Costs of construction:
Direct and indirect costs of construction
221,408
315,240
634,779
612,019
Depreciation
