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Reklaim Ltd. Financial Performance Report

On September 4, 2025, Reklaim Ltd. shared significant financial achievements for the quarter ending June 30, highlighting a robust year-to-date revenue growth of 40%. This remarkable performance showcases not only the company's strength in the market but also its strategic progress in the realm of consumer privacy.

Financial Highlights for Q2 2025

Reklaim posted a revenue of $1.30 million, marking an 18% increase compared to $1.10 million during the same quarter in the previous year. This growth marks the fifth consecutive quarter where Reklaim has enjoyed year-over-year increases.

Despite revenue growth, the gross margin slightly decreased to 77% from 81% in Q2 2024. This decline can be attributed to increased investments in product launches and the temporary utilization of a third-party distribution platform, which has now transitioned into a more efficient direct integration with The Trade Desk. The quarter's earnings before interest, taxes, depreciation, and amortization (EBITDA) showed a notable improvement, shrinking to ($140,634) from ($332,776) a year prior. Reklaim's cash position strengthened as well, with a balance of $419,000, an impressive 19.6% increase from Q1 2025.

A pivotal point in Reklaim's financial health was the complete repayment of its debenture, which not only reduced liabilities by over $800,000 but also eliminated future interest expenses. The total number of outstanding warrants also significantly decreased from 24 million at the beginning of the quarter to 7.45 million at quarter-end.

Operational and Strategic Developments

In addition to financial growth, Reklaim introduced innovative products and initiatives that reflect its commitment to consumer privacy. Significant operational highlights include:

1. Launch of Reklaim Protect: Rolled out in May 2025, this AI-driven subscription privacy service allows consumers to remove their personal information from data brokers, monitor data exposure on the dark web, and opt out of state data broker registries. This initiative creates a steady revenue stream while enhancing consumer protection.
2. Regulatory Tailwinds: The enactment of privacy laws in eight additional U.S. states in 2025 has lifted the total to 20 states with comprehensive data privacy frameworks. This regulatory shift increases demand for Reklaim’s user-consented data solutions.
3. Reklaim Jackpot Initiative: Launched in July, this new consumer engagement program rewards active participants in the Reklaim ecosystem, offering up to $10,000 in prizes monthly, further enhancing customer loyalty and retention.
4. Shares for Redemption (S4R) Program: Reklaim pioneered this initiative in Canada, allowing consumers to redeem earned points for common shares. This innovative approach aligns consumer reward programs with equity ownership, fostering a sense of stake in the company’s growth.

Neil Sweeney, CEO and Founder of Reklaim, expressed optimism regarding the company’s financial trajectory. He stated, "With the debenture retired and the warrant overhang reduced, Reklaim has removed the structural barriers that weigh on many small-cap companies. Moving forward, we can focus on developing products that consumers crave and brands require."

Miscellaneous Updates

During the latter half of Q2 2025, Reklaim repurchased 105,000 common shares at an average price of $0.09 for cancellation. Additionally, the company has enlisted the services of Independent Trading Group Inc. for market-making services, aimed at improving the liquidity of its shares.

Future Outlook

Reklaim aims to continue empowering consumers with newfound control over their personal data while further expanding AI-driven privacy initiatives. The upcoming Q2 2025 Management Discussion and Analysis along with financial statements will soon be accessible on the investor relations page.

With its innovative approach to consumer data privacy and market strategies, Reklaim seems poised for sustained growth in the evolving landscape of digital privacy.