International and programmatic channels represented 62% of Q1 2026 revenue mix
International and programmatic revenues3 each grew nearly 13x year-over-year
Gross margin of 53%, reflecting aggressive pricing in January to drive adoption of programmatic and international offerings, with margins improving throughout the quarter
Secured over $5 million in political and advocacy commitments heading into the second half of 2026
Implemented $2.3 million in annualized cost reductions year-to-date
Conference call to be hosted on May 26, 2026 at 10am ET / 7am PT
TORONTO, May 25, 2026 /CNW/ -- Sabio Holdings Inc. (TSXV:SBIO) (OTCQB:SABOF) (the "Company" or "Sabio"), a Los Angeles-based ad-tech company helping global brands reach, engage and validate (R.E.V.) streaming TV audiences, today announced its consolidated financial results for the three months ended March 31, 2026. Unless otherwise indicated, all amounts are expressed in U.S. dollars.
"Sabio entered 2026 with strong operational momentum as our investments in programmatic, international expansion and Creator TV® continued to scale meaningfully," said Aziz Rahimtoola, CEO of Sabio Holdings. "While the first quarter reflected the expected reduction in political and advocacy spend compared to the prior-year period, our diversified revenue strategy continued to gain traction, with both our international and App Science® powered programmatic businesses growing nearly 13 times year-over-year. Evidencing strong demand, 77% of our programmatic customers renewed from Q4 into Q1, despite Q1 historically being a seasonally softer quarter for advertising spend. Importantly, we are now entering the early stages of the U.S. election cycle with more than $5 million in political and advocacy commitments already secured by Sabio."
"Our expanding customer base, growing reoccurring revenue profile, and accelerating momentum across our highest growth channels position Sabio for what management expects will be a record revenue year, all while generating material cost efficiencies fueled in part through the strategic deployment of AI and automation," added Rahimtoola.
First Quarter 2026 Financial Highlights
Consolidated gross revenues1 were $8.2 million, compared to $9.1 million in the prior-year quarter. The year-over-year decline primarily reflected lower political and advocacy spending, which in election years is typically weighted toward the second half.
Excluding political and advocacy spend, core business revenues2 grew 6% year-over-year.
Ad-supported streaming (CTV/OTT) gross revenues1 were $6.5 million. Excluding political and advocacy spend, normalized ad-supported streaming gross revenues increased 18% year-over-year.
International revenues3 grew approximately 1,173% year-over-year, with Sabio London Limited contributing approximately 38% of first quarter consolidated gross revenues.
Programmatic CTV/OTT revenues increased approximately 1,174% year-over-year and represented approximately 24% of consolidated gross revenues.
International and programmatic revenues combined represented approximately 62% of consolidated gross revenues1 in Q1 2026, highlighting the continued scaling of Sabio's diversified revenue base.
Gross margin was 53% in the quarter, reflecting early-year pricing investments, concentrated in January, to accelerate engagement and adoption in our newest international and programmatic offerings, as well as a shift in higher-margin political & advocacy spend to the second half. Margins improved progressively through the remainder of the quarter.
Adjusted EBITDA4 was a loss of $3.4 million (IFRS net loss of $4.4 million in Q1 2026), primarily reflecting the movement of higher-margin political and advocacy revenues into later quarters, compared to the first quarter of 2025.
Business HighlightsStrategic Diversification Driving Growth
Continued scaling of Sabio's international and App Science® powered programmatic businesses, while also implementing $2.3 million in annualized cost reductions between Q1 and Q2 to date
Strong momentum across scalable revenue channels entering Q2 2026
Increasing operating leverage opportunities as newer channels mature
Expanding Customer Base
New customer logos increased 31% year-over-year, while 57% of returning logos expanded their spend with Sabio. In addition, 36% of programmatic customers increased their spend from Q4 to Q1, despite Q4 historically being the strongest advertising quarter of the year and Q1 typically representing Sabio's slowest seasonal quarter.
Growth across telecommunications, automotive, financial services, utilities and technology verticals
Continued expansion among Fortune 500 advertisers
Reoccurring revenues5 represented 85% of total revenues in Q1 2026
Political and Advocacy Momentum Building
More than $5 million in political and advocacy commitments secured by Sabio for 2026
Election-related demand historically contributes to margin expansion and improved cash flow visibility
Business OutlookSabio entered 2026 with accelerating momentum across its highest-growth channels, including programmatic Connected TV, international expansion and Creator TV®.
The Company continues to see strong adoption across its App Science® powered-programmatic and international offerings, both of which scaled significantly over the past year and continued to strengthen entering the second quarter. Gross revenues are currently tracking more than 35% higher sequentially, reflecting continued growth across these channels and the early stages of election-cycle spending activity.
Management believes Sabio's expanding customer base, high level of reoccurring revenue, scalable technology platform and growing political & advocacy pipeline position the Company for continued growth throughout 2026 and what it expects will be a record revenue year.
Conference CallSabio will host a conference call and webcast to discuss its Q1 2026 financial results:
Date: May 26, 2026
Time: 10:00 a.m. ET / 7:00 a.m. PT
Webcast Registration Link: https://us02web.zoom.us/webinar/register/2017793868418/WN_h6CaenZsSHaXUxlLj5A8Zg
About SabioSabio Holdings (TSXV:SBIO, OTCQB:SABOF) is a technology and services leader in the fast-growing ad-supported streaming space. Its cloud-based, end-to-end technology stack works with top blue-chip, global brands and the agencies that represent them to reach, engage, and validate (R.E.V.) streaming audiences.
Sabio consists of a proprietary ad-serving technology platform that partners with the top ad-supported streaming platforms and apps in the world, App Science®, a non-cookie-based software as a service (SAAS) analytics and insights platform with AI natural language capabilities, and Creator Television®(Creator TV), the first creator-led streaming network and content studio dedicated to bringing the authenticity and energy of social media storytelling to TV. For more information, visit: sabioctv.com
1 Gross revenue is a non‑IFRS (non‑GAAP) financial measure; see "Use of Non‑IFRS Measures" and "Selected Financials" for definitions and reconciliations to the most directly comparable IFRS measure.
2 Core-business gross revenue and core ad-supported streaming gross revenue are supplementary financial measures; see "Use of Non‑IFRS Measures" for definitions.
3 International sales and programmatic revenues are supplementary financial measures; see "Use of Non‑IFRS Measures" for their definitions.
4 Adjusted EBITDA is a non‑IFRS (non‑GAAP) financial measure; see "Use of Non‑IFRS Measures" and ...
