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Everyday People Financial Corp. Announces Strong Year-End Results

Overview

Edmonton, Alberta — (Newsfile Corp. – April 30, 2025) – Everyday People Financial Corp. (TSXV: EPF) (OTCQB: EPFCF) ("Everyday People" or the "Company") is a pioneering financial technology firm that offers AI-powered money management tools for both businesses and consumers. The Company has released its consolidated annual financial and operational results for the fiscal years ending December 31, 2023, and December 31, 2024. For a detailed understanding, this news release should be reviewed alongside Everyday People’s consolidated financial statements and the "Management’s Discussion and Analysis" report available on SEDAR+ at www.sedarplus.ca. All figures discussed are in Canadian dollars unless otherwise indicated.

Financial Growth

The Company has achieved impressive year-over-year revenue growth of 51%, which translates to approximately 76% on a fully adjusted basis. This growth is a testament to the Company’s disciplined strategic execution across its Revenue Cycle Management (RCM) and Financial Services business segments. The growth trajectory is reinforced by the successful integration of strategic acquisitions, scaling efforts in non-lending financial services, and robust margin strength within the Company’s RCM segment.

Strategic Adjustments in Revenue Recognition

In the fourth quarter, the Company took a more conservative approach to its revenue recognition policy, particularly affecting its EP Supply Chain operations. This led to a non-cash reversal of $3.6 million of previously accrued revenue and a deferral of approximately $2.8 million in Q4 revenue. Additionally, a $3.4 million adjustment in RCM revenue was made following a review of revenue recognition practices. It’s crucial to note that these adjustments are non-cash and do not point to any issues regarding impairment or collectability. Even with these changes, performance metrics across operating units remained strong and consistent.

Key Financial Highlights for 2024

In the fiscal year ending December 31, 2024, the Company reported revenue of $57.1 million, up significantly from $37.9 million in 2023. Had the adjustments related to revenue reversals and unrecognized EP Supply Chain revenue not occurred, the revenue would have stood at about $63.5 million. The non-cash adjustments reduced reported revenue and net income, but they are entirely non-cash in nature, having already been collected and expended in the normal course of business. The final adjusted revenue, including all considerations, would approximate $66.2 million.

Net Loss Insights

The Company reported a net loss before tax of $6.7 million, compared to a $2.5 million loss in the preceding year. This variance is chiefly attributable to the adjustments made in Q4 concerning the EP Supply Chain and RCM revenue.

Q4 2024 Financial Overview

Performance for the Last Quarter of 2024

• Revenue: The fourth quarter saw revenue of $8.8 million, a 9% decline compared to $9.7 million in Q4 2023. This decline was considerable due to the $3.6 million non-cash revenue reversal and $2.8 million in unrecognized EP Supply Chain revenue, along with a $0.4 million reversal in RCM revenue. On a fully adjusted basis, Q4 revenue would have approximated $15.6 million.

• Net Loss: The net loss for Q4 2024 reached $10.3 million, in contrast to a minor loss of $0.3 million in Q4 2023, an outcome mainly driven by adjustments in the EP Supply Chain and RCM segments.

Business Segment Highlights

Revenue Cycle Management (RCM)

In the RCM segment, revenues approached $50 million for the year, before accounting for the $2.7 million non-cash revenue reversal. This segment showed strong profitability with adjusted EBITDA margins of around 15%, translating to approximately $7.4 million in segment-level adjusted EBITDA.

Financial Services

Although growth in the Financial Services sector was temporarily impacted by the $3.6 million non-cash revenue reversal from the shift to a cash-based revenue recognition policy for EP Supply Chain operations, the segment continued to scale strategically. It benefitted from strong partner demand and verified receivables amounting to $6.4 million, expected to be recognized within the next twelve months.

Looking Ahead: Strategic Growth Initiatives

With a focus on leveraging operational momentum, Everyday People plans to pursue additional value-creating acquisitions within its RCM business segment and to broaden its Financial Services offerings. Management remains committed to achieving net profitability and delivering sustained shareholder value throughout 2025.

The Role of AI legalese decoder

Amid these financial intricacies, legal agreements and documentation can become perplexing for businesses. This is where AI legalese decoder becomes invaluable. By simplifying legal language, it helps stakeholders understand their obligations and rights, ensuring transparency in operations. This can be especially beneficial for navigating complex agreements in M&A activities or revenue recognition policies, ultimately supporting Everyday People in their financial endeavors and enhancing operational clarity.

About Everyday People Financial Corp.

Everyday People Financial Corp. is a technology-oriented financial service provider dedicated to aiding individuals and businesses in managing finances more efficiently. Founded in 1988, the company operates with a workforce of 550 across the UK and Canada, focusing on fee-for-service solutions across its two primary business pillars.

Mission

The mission of Everyday People is to ensure everyone has a chance to rebuild their financial health and wealth. The Company prioritizes affordable, innovative, and responsible financial solutions that create enduring value for clients, customers, and shareholders.

Services Offered

The Company specializes in Revenue Cycle Management (RCM), which aids organizations in recovering receivables without acquiring consumer debt, and Financial Services, offering digital tools and credit access programs that empower Canadians in their financial journeys—all without extending loans.

Commitment to Client Empowerment

Everyday People stands for the principle that every individual deserves a second chance to improve their financial situation. By combining creativity with entrepreneurship, the Company aims to meet clients’ financial needs effectively and affordably.

Financial Documentation & Management Discussion

For more comprehensive details, please refer to Everyday People’s consolidated financial statements and the "Management’s Discussion and Analysis" report for the fiscal year ending December 31, 2024, which are accessible via SEDAR+ at www.sedarplus.ca.

Disclaimer on Non-IFRS Financial Measures

This release references certain non-IFRS financial measures, including Adjusted EBITDA. It is important to note that "Adjusted EBITDA" is not universally recognized under IFRS and may vary from similar measures offered by other companies. These metrics provide insight into the Company’s operational performance and empower stakeholders to see trends that may not be clear from standard IFRS measures.

Contact Information

Gordon Reykdal
Executive Chairman, Everyday People Financial Corp.
Email: [email protected]
Phone: 1-888-825-9808 (Press Option 2 for Investor and Media Relations)

Forward-Looking Statements

This announcement includes specific forward-looking statements as defined under applicable Canadian securities legislation. These statements encompass expectations regarding financial performance, operations, and integration of acquired businesses, among others. Given the uncertainties surrounding these predictions, readers are advised not to place undue reliance on such statements.

Conclusion

Through continuous innovation and strategic adjustments, Everyday People Financial Corp. is positioned to enhance its offerings while abiding by sound financial practices. With the assistance of technologies like AI legalese decoder, businesses can navigate complex legal landscape effectively, supporting their growth trajectory and financial transparency.

For further information, please visit www.everydaypeoplefinancial.com.

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