Route1 Sets Fourth Quarter Priorities for Revenue Growth

TORONTO, October 14, 2026 /CourierPR/ -- The technology-enabled services provider Route1 Inc. (TSXV: ROI) has provided an update on its operating progress, business development activities, and priorities for the fourth quarter of 2026. The company has continued its transition toward a higher-quality recurring revenue model, with gross margin increasing to 45.2% from 36.5% in the second quarter (Q2) of 2026. This improvement is attributed to technology lifecycle maintenance and support revenue, which saw a 12.4% year-over-year increase. Additionally, the company reported positive cash flow from operating activities of approximately C$0.304 million as of August 1, 2026, and its annualized recurring revenue base exceeded US$1.4 million.

Route1 has also outlined its priorities for the fourth quarter of 2026, which include closing a number of advanced business development opportunities, growing recurring revenue, increasing revenue compared to the third quarter (Q3) of 2026, further improving gross profit and EBITDA, converting existing customer relationships into broader Comprehensive+, Route1 ABI, and lifecycle support relationships, and reducing debt to strengthen the company's financial position.

The company has also confirmed its participation in the Emerging Growth Conference, with a presentation scheduled from 4:10 p.m. to 4:20 p.m. on October 28, 2026. The annual general and special meeting of shareholders will be held on November 10, 2026, at 10:00 a.m. Eastern Standard Time, at the offices of Fasken Martineau DuMoulin LLP, Suite 2400, 333 Bay Street, Toronto, Ontario, Canada. At this meeting, shareholders will receive the company's audited financial statements for the year ended December 31, 2025, and the auditor's report thereon. They will also have the opportunity to fix the number of directors at four, elect the company's directors for the ensuing year, re-appoint MNP LLP as the company's auditors, and authorize the directors to fix the auditors' remuneration. Additionally, shareholders will have the opportunity to re-approve the company's amended and restated Long-Term Incentive Plan (LTIP) and approve the company's shareholder rights plan.

Route1's market update highlights the importance of the Advanced License Plate Recognition (ALPR) market, which is undergoing a significant structural change. Public safety, agency-controlled ALPR, and parking-focused LPR are increasingly developing as distinct markets with different customer requirements and regulatory considerations. The company's commercial strategy now operates through several complementary motions, including expansion within existing Route1 accounts, conversion of traditional VAR relationships into broader ALPR relationships, OEM and technology-partner referrals, channel-led opportunities, targeted public-sector and university outreach, formal procurements, and trigger-driven opportunities created by technology replacement cycles, operating issues, regulatory requirements, or changes in customer priorities.

In the fourth quarter of 2026, Route1's principal operating priorities will be to close a number of advanced business development opportunities, grow recurring revenue, increase revenue compared to Q3 2026, further improve gross profit and EBITDA, convert existing customer relationships into broader Comprehensive+, Route1 ABI, and lifecycle support relationships, and reduce debt to strengthen the company's financial position. Management expects Q4 2026 to reflect revenue growth compared to Q3 and further improvement in EBITDA, although the timing and size of technology orders and public-sector procurement activity may continue to create variability between reporting periods.

Route1's annual general and special meeting of shareholders will be held on November 10, 2026, at 10:00 a.m. Eastern Standard Time, at the offices of Fasken Martineau DuMoulin LLP, Suite 2400, 333 Bay Street, Toronto, Ontario, Canada. At this meeting, shareholders will receive the company's audited financial statements for the year ended December 31, 2025, and the auditor's report thereon. They will also have the opportunity to fix the number of directors at four, elect the company's directors for the ensuing year, re-appoint MNP LLP as the company's auditors, and authorize the directors to fix the auditors' remuneration. Additionally, shareholders will have the opportunity to re-approve the company's amended and restated Long-Term Incentive Plan (LTIP) and approve the company's shareholder rights plan. The record date for shareholders entitled to receive notice of and vote at the meeting was September 25, 2026.