{"success":true,"data":{"pressRelease":{"id":"132751","rtpr_id":"nPn697q2ka","ticker":"VST","exchange":"","all_tickers":["VST"],"title":"Victory Square Technologies Reports First-Half 2026 Revenue of $53.0 Million and Net Income of $6.5 Million","author":"PR Newswire","published_at":"2026-09-01T13:12:31.209Z","article_body":"Victory Square Technologies Reports First-Half 2026 Revenue of $53.0 Million and Net Income of $6.5 Million\n\nPR Newswire\n\nVANCOUVER, BC, Sept. 1, 2026\n\nQ2 revenue increases 421% year-over-year to $28.0 million; cash reaches $20.2\nmillion and working capital increases to $34.5 million\n\nVANCOUVER, BC, Sept. 1, 2026 /PRNewswire/ -- Victory Square Technologies Inc.\n(\"Victory Square\", \"VST\" or the \"Company\") (CSE: VST) (OTCQX: VSQTF) (FWB:\n6F6), a venture builder focused on healthcare infrastructure, digital health,\nartificial intelligence and emerging technology platforms, today announced its\nfinancial results for the three and six months ended June 30, 2026, and\nprovided an update on key portfolio developments.\n\nVictory Square generated revenue of $28.0 million during Q2 2026, compared\nwith $5.4 million during Q2 2025, representing an increase of approximately\n421% year-over-year. Gross profit increased to $5.4 million, compared with\n$1.9 million in the prior-year period, while net income was $2.5 million,\ncompared with $0.4 million in Q2 2025.\n\nFor the six months ended June 30, 2026, Victory Square generated $53.0 million\nin revenue, compared with $9.9 million during the same period in 2025,\nrepresenting an increase of approximately 434% year-over-year. Gross profit\nincreased to $10.5 million, compared with $3.4 million, while net income was\n$6.5 million, compared with a net loss of approximately $0.1 million during\nthe comparable period in 2025.\n\nThe Company's consolidated revenue growth during the period was primarily\nattributable to the continued growth of Hydreight Technologies Inc.\n(\"Hydreight\"), while net income was primarily attributable to operating income\nfrom Hydreight and fair-value adjustments in portfolio investments.\n\nQ2 and First-Half 2026 Financial Highlights\n\nFor the three months ended June 30, 2026:\n\n * Revenue of $28.0 million, compared with $5.4 million in Q2 2025, an increase\nof approximately 421%\n * Gross profit of $5.4 million, compared with $1.9 million, an increase of\napproximately 182%\n * Net income of $2.5 million, compared with $0.4 million\n * Comprehensive income of $3.2 million, compared with $0.5 million\nFor the six months ended June 30, 2026:\n\n * Revenue of $53.0 million, compared with $9.9 million during the comparable\nperiod in 2025, an increase of approximately 434%\n * Gross profit of $10.5 million, compared with $3.4 million, an increase of\napproximately 206%\n * Net income of $6.5 million, compared with a net loss of approximately $0.1\nmillion\n * Comprehensive income of $7.4 million, compared with approximately $34,000\nduring the comparable period in 2025.\nAs at June 30, 2026:\n\n * Cash of $20.2 million, compared with $16.3 million at December 31, 2025\n * Working capital of $34.5 million, compared with $15.1 million at December 31,\n2025\n\"Q2 continued the strong operating momentum we saw at the beginning of the\nyear,\" said Shafin Diamond Tejani, Chief Executive Officer of Victory Square\nTechnologies. \"Through the first six months of 2026, Victory Square generated\napproximately $53 million in revenue and $6.5 million in net income. At June\n30, we had more than $20 million in cash and approximately $34.5 million in\nworking capital, providing a strong financial foundation as we continue\nsupporting the growth of our portfolio.\"\n\n\"What matters to us beyond the headline numbers is what is happening across\nthe portfolio. Hydreight continues to scale the healthcare infrastructure we\nhave spent years helping build. Insu Therapeutics is advancing the development\nof its buccal drug-delivery platform, and Pawsible is applying our\nventure-building approach to opportunities within companion-animal health.\"\n\n\"Our approach has remained consistent: identify companies and technologies in\nlarge markets, work alongside founders and management teams, provide capital\nand operational support, and help those companies progress from development\ntoward scalable operations. Hydreight's growth provides a tangible example of\nwhat that model can look like as a platform reaches scale.\"\n\n\"We enter the second half of 2026 focused on execution and disciplined capital\nallocation. Our priorities include supporting Hydreight's continued growth,\nadvancing our healthcare investments, supporting Insu's development programs,\nexpanding Pawsible's activities and continuing to evaluate opportunities\nacross the portfolio.\"\n\nPortfolio Update\n\nHydreight Technologies — Continued Growth Across U.S. Healthcare\nInfrastructure\n\nHydreight Technologies Inc. (TSXV: NURS) (OTCQB: HYDTF) is Victory Square's\nlargest operating subsidiary and operates a digital health infrastructure\nplatform supporting healthcare providers, businesses and direct-to-consumer\nhealthcare brands across the United States.\n\nHydreight reported record Q2 2026 revenue of approximately $28.0 million, an\nincrease of approximately 422% compared with $5.4 million in Q2 2025. Gross\nprofit was approximately $5.4 million, while Hydreight generated approximately\n$2.5 million in net income during the quarter.\n\nQ2 revenue increased approximately 12.5% sequentially from Q1 2026, while\ngross profit increased approximately 7%. For the first six months of 2026,\nHydreight generated approximately $53.0 million in revenue, an increase of\napproximately 434% compared with $9.9 million during the same period in 2025.\n\nHydreight's virtual healthcare/direct-to-consumer segment generated\napproximately $22.8 million of revenue during Q2 2026 and approximately $42.7\nmillion during the first six months of 2026, compared with approximately $1.0\nmillion during the corresponding six-month period in 2025.\n\nHydreight's broader healthcare infrastructure spans all 50 U.S. states and\nincludes a network of more than 3,000 nurses, more than 300 independent\ndoctors and pharmacy relationships supporting its healthcare ecosystem.\nHydreight continues to invest in VSDHOne 2.0 and the technology, provider,\npharmacy and compliance infrastructure supporting its operations.\n\nHydreight ended Q2 2026 with approximately $20.0 million in cash and $35.1\nmillion in working capital, compared with approximately $15.6 million in cash\nand $15.7 million in working capital at December 31, 2025.\n\nHydreight's revenue mix changed substantially as its pharmacy operations\nscaled. Pharmacy product sales increased to approximately $26.2 million during\nQ2 2026, compared with approximately $4.5 million during Q2 2025. The change\nin revenue mix contributed to a Q2 gross margin of approximately 19.4%,\ncompared with 35.9% during the prior-year period. Hydreight has disclosed that\nthe change primarily reflects the increased contribution from pharmacy sales\nand certain pricing concessions associated with initial transactions under new\nsupporting pharmacy partnerships.\n\nHydreight has reaffirmed its previously announced fiscal 2026 revenue guidance\nof approximately $150 million, based on management's current internal planning\nassumptions and subject to the assumptions and risks contained in Hydreight's\npublic disclosure.\n\nInsu Therapeutics — Advancing Buccal Peptide Delivery Technology\n\nVictory Square continues to support the development of Insu Therapeutics Inc.,\na biotechnology company developing a patented buccal drug-delivery platform\nfor peptide-based therapeutics.\n\nInsu's platform is designed to evaluate the delivery of peptide therapies\nthrough the buccal mucosa, or inner cheek, as an alternative route of\nadministration. Insu is not developing a new peptide molecule; its current\nresearch is focused on evaluating its delivery technology using existing\npeptide therapies, including semaglutide.\n\nDuring the first half of 2026, Insu announced the completion of Phase I\npreclinical studies evaluating its buccal semaglutide program and received\nResearch Ethics Board approval from the University of British Columbia to\ninitiate Phase II studies.\n\nThe studies use innovator-manufactured semaglutide and are designed to\nevaluate pharmacokinetics, systemic exposure and performance under chronic\nadministration. Insu's intellectual property and research programs are focused\non peptide-delivery technologies and are supported by research conducted at\nthe University of British Columbia.\n\nVictory Square continues to support Insu as it advances its research and\ndevelopment programs.\n\nPawsible Ventures — Building a Pet-Health Venture Platform\n\nVictory Square continues to expand its activities in companion-animal health\nthrough Pawsible Ventures, a pet-health venture platform focused on\nidentifying and supporting companies developing technologies and services\nacross veterinary healthcare.\n\nDuring 2026, Pawsible launched a $10 million venture fund, venture studio,\npet-health incubator and global advisory board focused on supporting\ncompanies operating across areas including veterinary diagnostics, AI-enabled\ncare, preventative health, therapeutics, veterinary software and consumer\nwellness. These initiatives build on Victory Square's previously disclosed\nstrategy of extending its company-building model into adjacent healthcare\nmarkets.\n\nIn April 2026, Pawsible announced its inaugural cohort of eight companies,\nselected following the evaluation of several hundred applicants globally. The\ncohort includes companies operating across veterinary infrastructure,\ndiagnostics, AI-enabled care, preventative health and consumer wellness.\n\nVictory Square continues to evaluate opportunities within companion-animal\nhealth, including veterinary diagnostics, digital health, artificial\nintelligence, preventative care and therapeutics.\n\nVictory Square's Venture-Building Strategy\n\nVictory Square operates as an active venture builder, working alongside\nportfolio companies to provide capital, operational support, strategic\nguidance and access to its network of partners and resources.\n\nThe Company's approach is focused on identifying opportunities in large and\nevolving markets, helping build the infrastructure required for growth, and\nsupporting companies as they progress toward scalable operations. Hydreight's\ndevelopment and growth provide an example of this approach, which Victory\nSquare continues to apply across its broader portfolio.\n\nStrategic Priorities for the Remainder of 2026\n\nVictory Square's priorities for the remainder of 2026 include:\n\n * Supporting Hydreight's continued execution and expansion of VSDHOne and its\nbroader U.S. healthcare infrastructure\n * Supporting Insu Therapeutics as it advances its peptide-delivery research and\ndevelopment programs\n * Expanding Pawsible Ventures' pet-health platform and supporting companies\nwithin its incubator\n * Continuing to evaluate opportunities across healthcare infrastructure, digital\nhealth, artificial intelligence and emerging technology\n * Maintaining disciplined capital allocation across the Company's portfolio\nVictory Square will continue to provide updates as material developments\noccur.\n\nFinancial Statements and MD&A\n\nVictory Square's condensed consolidated interim financial statements and\nManagement's Discussion and Analysis for the three and six months ended June\n30, 2026 are available under the Company's issuer profile on SEDAR+.\n\nThe Company's Q2 2026 financial statements were prepared in accordance with\nIAS 34, Interim Financial Reporting, using accounting policies consistent with\nIFRS Accounting Standards.\n\nReaders are encouraged to review the complete financial statements and\nMD&A in conjunction with this news release.\n\nOn behalf of the Board of Directors\n\nShafin Diamond Tejani\nChairman & Chief Executive Officer\nVictory Square Technologies Inc.\n\nABOUT VICTORY SQUARE TECHNOLOGIES INC.\n\nVictory Square Technologies Inc. is a publicly traded company that invests in,\ndevelops, and supports businesses operating across healthcare infrastructure,\ndigital health, artificial intelligence, immersive technologies, and other\nemerging sectors.\n\nThe Company maintains a portfolio of operating and development-stage\nbusinesses, with a particular focus on healthcare infrastructure, software\nplatforms, and technology-enabled services.\n\nPortfolio sectors include:\n\n * Digital Health & Healthcare Infrastructure\n * Artificial Intelligence (AI) & Machine Learning\n * Blockchain & Web3 Infrastructure\n * Virtual & Augmented Reality (VR/AR)\n * Gaming & Interactive Technologies\n * Climate Technology\n * Pet Health & Wellness\nVictory Square provides portfolio companies with access to capital,\noperational support, strategic guidance, and industry relationships to assist\nin their development and growth.\n\nThe Company is headquartered in Vancouver, British Columbia, Canada, and its\ncommon shares trade on the Canadian Securities Exchange (CSE: VST), the\nFrankfurt Stock Exchange (FWB: 6F6), and the OTC Market (OTCQX: VSQTF).\n\nFor more information, please visit\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4764824-1&h=2048346715&u=https%3A%2F%2Fedge.prnewswire.com%2Fc%2Flink%2F%3Ft%3D0%26l%3Den%26o%3D4701786-1%26h%3D531975911%26u%3Dhttp%253A%252F%252Fwww.victorysquare.com%252F%26a%3D%25C2%25A0&a=%C2%A0)\nwww.victorysquare.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4764824-1&h=1480187356&u=https%3A%2F%2Fedge.prnewswire.com%2Fc%2Flink%2F%3Ft%3D0%26l%3Den%26o%3D4701786-1%26h%3D296888116%26u%3Dhttp%253A%252F%252Fwww.victorysquare.com%252F%26a%3Dwww.victorysquare.com&a=www.victorysquare.com)\n.\n\nForward-Looking Information\n\nThis news release contains \"forward-looking information\" within the meaning of\napplicable securities laws.\n\nForward-looking information may be identified by words such as \"may\", \"would\",\n\"could\", \"should\", \"will\", \"intend\", \"plan\", \"anticipate\", \"believe\",\n\"estimate\", \"expect\" or similar expressions.\n\nForward-looking information in this news release includes, without limitation,\nstatements relating to:\n\n * The Company's strategy and business model\n * Portfolio company development and performance\n * Platform scaling and utilization\n * Capital allocation and monetization initiatives\n * Hydreight's publicly disclosed guidance and outlook\n * The anticipated benefits of VSDHOne and other platform-based offerings\n * Development timelines and regulatory pathways for Insu Therapeutics\n * Expansion initiatives across Pawsible Ventures and other portfolio companies\nForward-looking information is based on management's current expectations,\nestimates, assumptions, and beliefs as of the date of this release, including\nassumptions regarding:\n\n * Continued partner adoption and transaction volumes\n * Stability of regulatory frameworks in applicable jurisdictions\n * Availability of capital\n * Portfolio company execution\n * General economic and market conditions\nForward-looking information relating to Hydreight, including revenue guidance\nand margin expectations, is based on information publicly disclosed by\nHydreight and reflects Hydreight management's expectations regarding partner\nactivity, service mix, and operational capacity.\n\nActual results may differ materially from those anticipated due to a number of\nfactors, including, without limitation:\n\n * Changes in regulatory requirements\n * Execution risk at the portfolio company level\n * Variability in transaction volumes or partner performance\n * Revenue recognition and audit outcomes\n * Capital markets conditions\n * Clinical development risks\n * General economic and industry conditions\nThere can be no assurance that forward-looking information will prove to be\naccurate, and readers are cautioned not to place undue reliance on such\ninformation.\n\nExcept as required by applicable law, the Company does not undertake any\nobligation to update forward-looking information.\n\nUse of Non-GAAP Financial Measures\n\nThis news release references certain non-GAAP financial measures used by the\nCompany and its portfolio companies, including \"Adjusted Revenue\" and\n\"Adjusted EBITDA.\"\n\nThese measures do not have standardized meanings prescribed by International\nFinancial Reporting Standards (\"IFRS\") and may not be comparable to similar\nmeasures used by other issuers.\n\nFor Victory Square, non-GAAP measures are used to provide additional insight\ninto operating performance, portfolio activity, and the scale of underlying\nplatform economics.\n\nFor Hydreight Technologies Inc. (\"Hydreight\"), which is consolidated within\nthe Company's financial results, non-GAAP financial measures are defined and\nreported by Hydreight in its public disclosure, including its audited\nfinancial statements and MD&A.\n\nAs disclosed by Hydreight:\n\n * Adjusted Revenue reflects gross economic activity processed through the\nplatform and may differ materially from revenue recognized under IFRS due to\nrevenue recognition and deferral requirements.\n * Adjusted EBITDA is defined as net income (loss) before interest, taxes,\ndepreciation and amortization, and before certain non-recurring or\nnon-operating items, including transaction costs, share-based compensation,\nand other adjustments as disclosed in Hydreight's filings.\nThese measures are provided for informational purposes only and should not be\nconsidered in isolation or as substitutes for financial measures prepared in\naccordance with IFRS.\n\nReaders are encouraged to review Hydreight's public filings on SEDAR+ for full\ndefinitions, reconciliations, and related disclosures regarding its non-GAAP\nfinancial measures.\n\nIn addition, revenue recognition for certain platform-based offerings,\nincluding those facilitated through the VSDHOne infrastructure, may involve\nmanagement judgment and auditor review, and may result in differences between\nreported IFRS revenue and gross processing volumes or cash receipts during a\ngiven period.\n\nNotes:\n\n 1. \"Adjusted Revenue\" is a non-GAAP financial measure, and the figures reflect\ngross economic activity processed through the Company's platform and should\nnot be considered revenue recognized under IFRS. See \"Non-GAAP Financial\nMeasures\" section below for definition.\n 2. \"Adjusted EBITDA\" is a non-GAAP financial measure and reflects EBITDA plus\nadditions for atypical and non-recurring charges. See \"Non-GAAP Financial\nMeasures\" section below for definition.\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/victory-square-technologies-reports-first-half-2026-revenue-of-53-0-million-and-net-income-of-6-5-million-302866285.html\n(https://www.prnewswire.com/news-releases/victory-square-technologies-reports-first-half-2026-revenue-of-53-0-million-and-net-income-of-6-5-million-302866285.html)\n\nSOURCE Victory Square Technologies Inc\n\n\n\nFor further information about Victory Square, please contact: Investor Relations - Abbey Vogt, Email: ir@victorysquare.com; Peter Smyrniotis - Director, Email: peter@victorysquare.com, 604-428-7050\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS1830374/Victory-Square-Technologies-Inc-Victory-Square-Technologies-Repo.jpg?id=OA2923078\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn697q2ka","title":"Victory Square Technologies Reports First-Half 2026 Revenue of $53.0 Million and Net Income of $6.5 Million","author":"PR Newswire","ticker":"VST","created":"2026-09-01T13:12:31.209Z","tickers":["VST"],"exchange":"","article_body":"Victory Square Technologies Reports First-Half 2026 Revenue of $53.0 Million and Net Income of $6.5 Million\n\nPR Newswire\n\nVANCOUVER, BC, Sept. 1, 2026\n\nQ2 revenue increases 421% year-over-year to $28.0 million; cash reaches $20.2\nmillion and working capital increases to $34.5 million\n\nVANCOUVER, BC, Sept. 1, 2026 /PRNewswire/ -- Victory Square Technologies Inc.\n(\"Victory Square\", \"VST\" or the \"Company\") (CSE: VST) (OTCQX: VSQTF) (FWB:\n6F6), a venture builder focused on healthcare infrastructure, digital health,\nartificial intelligence and emerging technology platforms, today announced its\nfinancial results for the three and six months ended June 30, 2026, and\nprovided an update on key portfolio developments.\n\nVictory Square generated revenue of $28.0 million during Q2 2026, compared\nwith $5.4 million during Q2 2025, representing an increase of approximately\n421% year-over-year. Gross profit increased to $5.4 million, compared with\n$1.9 million in the prior-year period, while net income was $2.5 million,\ncompared with $0.4 million in Q2 2025.\n\nFor the six months ended June 30, 2026, Victory Square generated $53.0 million\nin revenue, compared with $9.9 million during the same period in 2025,\nrepresenting an increase of approximately 434% year-over-year. Gross profit\nincreased to $10.5 million, compared with $3.4 million, while net income was\n$6.5 million, compared with a net loss of approximately $0.1 million during\nthe comparable period in 2025.\n\nThe Company's consolidated revenue growth during the period was primarily\nattributable to the continued growth of Hydreight Technologies Inc.\n(\"Hydreight\"), while net income was primarily attributable to operating income\nfrom Hydreight and fair-value adjustments in portfolio investments.\n\nQ2 and First-Half 2026 Financial Highlights\n\nFor the three months ended June 30, 2026:\n\n * Revenue of $28.0 million, compared with $5.4 million in Q2 2025, an increase\nof approximately 421%\n * Gross profit of $5.4 million, compared with $1.9 million, an increase of\napproximately 182%\n * Net income of $2.5 million, compared with $0.4 million\n * Comprehensive income of $3.2 million, compared with $0.5 million\nFor the six months ended June 30, 2026:\n\n * Revenue of $53.0 million, compared with $9.9 million during the comparable\nperiod in 2025, an increase of approximately 434%\n * Gross profit of $10.5 million, compared with $3.4 million, an increase of\napproximately 206%\n * Net income of $6.5 million, compared with a net loss of approximately $0.1\nmillion\n * Comprehensive income of $7.4 million, compared with approximately $34,000\nduring the comparable period in 2025.\nAs at June 30, 2026:\n\n * Cash of $20.2 million, compared with $16.3 million at December 31, 2025\n * Working capital of $34.5 million, compared with $15.1 million at December 31,\n2025\n\"Q2 continued the strong operating momentum we saw at the beginning of the\nyear,\" said Shafin Diamond Tejani, Chief Executive Officer of Victory Square\nTechnologies. \"Through the first six months of 2026, Victory Square generated\napproximately $53 million in revenue and $6.5 million in net income. At June\n30, we had more than $20 million in cash and approximately $34.5 million in\nworking capital, providing a strong financial foundation as we continue\nsupporting the growth of our portfolio.\"\n\n\"What matters to us beyond the headline numbers is what is happening across\nthe portfolio. Hydreight continues to scale the healthcare infrastructure we\nhave spent years helping build. Insu Therapeutics is advancing the development\nof its buccal drug-delivery platform, and Pawsible is applying our\nventure-building approach to opportunities within companion-animal health.\"\n\n\"Our approach has remained consistent: identify companies and technologies in\nlarge markets, work alongside founders and management teams, provide capital\nand operational support, and help those companies progress from development\ntoward scalable operations. Hydreight's growth provides a tangible example of\nwhat that model can look like as a platform reaches scale.\"\n\n\"We enter the second half of 2026 focused on execution and disciplined capital\nallocation. Our priorities include supporting Hydreight's continued growth,\nadvancing our healthcare investments, supporting Insu's development programs,\nexpanding Pawsible's activities and continuing to evaluate opportunities\nacross the portfolio.\"\n\nPortfolio Update\n\nHydreight Technologies — Continued Growth Across U.S. Healthcare\nInfrastructure\n\nHydreight Technologies Inc. (TSXV: NURS) (OTCQB: HYDTF) is Victory Square's\nlargest operating subsidiary and operates a digital health infrastructure\nplatform supporting healthcare providers, businesses and direct-to-consumer\nhealthcare brands across the United States.\n\nHydreight reported record Q2 2026 revenue of approximately $28.0 million, an\nincrease of approximately 422% compared with $5.4 million in Q2 2025. Gross\nprofit was approximately $5.4 million, while Hydreight generated approximately\n$2.5 million in net income during the quarter.\n\nQ2 revenue increased approximately 12.5% sequentially from Q1 2026, while\ngross profit increased approximately 7%. For the first six months of 2026,\nHydreight generated approximately $53.0 million in revenue, an increase of\napproximately 434% compared with $9.9 million during the same period in 2025.\n\nHydreight's virtual healthcare/direct-to-consumer segment generated\napproximately $22.8 million of revenue during Q2 2026 and approximately $42.7\nmillion during the first six months of 2026, compared with approximately $1.0\nmillion during the corresponding six-month period in 2025.\n\nHydreight's broader healthcare infrastructure spans all 50 U.S. states and\nincludes a network of more than 3,000 nurses, more than 300 independent\ndoctors and pharmacy relationships supporting its healthcare ecosystem.\nHydreight continues to invest in VSDHOne 2.0 and the technology, provider,\npharmacy and compliance infrastructure supporting its operations.\n\nHydreight ended Q2 2026 with approximately $20.0 million in cash and $35.1\nmillion in working capital, compared with approximately $15.6 million in cash\nand $15.7 million in working capital at December 31, 2025.\n\nHydreight's revenue mix changed substantially as its pharmacy operations\nscaled. Pharmacy product sales increased to approximately $26.2 million during\nQ2 2026, compared with approximately $4.5 million during Q2 2025. The change\nin revenue mix contributed to a Q2 gross margin of approximately 19.4%,\ncompared with 35.9% during the prior-year period. Hydreight has disclosed that\nthe change primarily reflects the increased contribution from pharmacy sales\nand certain pricing concessions associated with initial transactions under new\nsupporting pharmacy partnerships.\n\nHydreight has reaffirmed its previously announced fiscal 2026 revenue guidance\nof approximately $150 million, based on management's current internal planning\nassumptions and subject to the assumptions and risks contained in Hydreight's\npublic disclosure.\n\nInsu Therapeutics — Advancing Buccal Peptide Delivery Technology\n\nVictory Square continues to support the development of Insu Therapeutics Inc.,\na biotechnology company developing a patented buccal drug-delivery platform\nfor peptide-based therapeutics.\n\nInsu's platform is designed to evaluate the delivery of peptide therapies\nthrough the buccal mucosa, or inner cheek, as an alternative route of\nadministration. Insu is not developing a new peptide molecule; its current\nresearch is focused on evaluating its delivery technology using existing\npeptide therapies, including semaglutide.\n\nDuring the first half of 2026, Insu announced the completion of Phase I\npreclinical studies evaluating its buccal semaglutide program and received\nResearch Ethics Board approval from the University of British Columbia to\ninitiate Phase II studies.\n\nThe studies use innovator-manufactured semaglutide and are designed to\nevaluate pharmacokinetics, systemic exposure and performance under chronic\nadministration. Insu's intellectual property and research programs are focused\non peptide-delivery technologies and are supported by research conducted at\nthe University of British Columbia.\n\nVictory Square continues to support Insu as it advances its research and\ndevelopment programs.\n\nPawsible Ventures — Building a Pet-Health Venture Platform\n\nVictory Square continues to expand its activities in companion-animal health\nthrough Pawsible Ventures, a pet-health venture platform focused on\nidentifying and supporting companies developing technologies and services\nacross veterinary healthcare.\n\nDuring 2026, Pawsible launched a $10 million venture fund, venture studio,\npet-health incubator and global advisory board focused on supporting\ncompanies operating across areas including veterinary diagnostics, AI-enabled\ncare, preventative health, therapeutics, veterinary software and consumer\nwellness. These initiatives build on Victory Square's previously disclosed\nstrategy of extending its company-building model into adjacent healthcare\nmarkets.\n\nIn April 2026, Pawsible announced its inaugural cohort of eight companies,\nselected following the evaluation of several hundred applicants globally. The\ncohort includes companies operating across veterinary infrastructure,\ndiagnostics, AI-enabled care, preventative health and consumer wellness.\n\nVictory Square continues to evaluate opportunities within companion-animal\nhealth, including veterinary diagnostics, digital health, artificial\nintelligence, preventative care and therapeutics.\n\nVictory Square's Venture-Building Strategy\n\nVictory Square operates as an active venture builder, working alongside\nportfolio companies to provide capital, operational support, strategic\nguidance and access to its network of partners and resources.\n\nThe Company's approach is focused on identifying opportunities in large and\nevolving markets, helping build the infrastructure required for growth, and\nsupporting companies as they progress toward scalable operations. Hydreight's\ndevelopment and growth provide an example of this approach, which Victory\nSquare continues to apply across its broader portfolio.\n\nStrategic Priorities for the Remainder of 2026\n\nVictory Square's priorities for the remainder of 2026 include:\n\n * Supporting Hydreight's continued execution and expansion of VSDHOne and its\nbroader U.S. healthcare infrastructure\n * Supporting Insu Therapeutics as it advances its peptide-delivery research and\ndevelopment programs\n * Expanding Pawsible Ventures' pet-health platform and supporting companies\nwithin its incubator\n * Continuing to evaluate opportunities across healthcare infrastructure, digital\nhealth, artificial intelligence and emerging technology\n * Maintaining disciplined capital allocation across the Company's portfolio\nVictory Square will continue to provide updates as material developments\noccur.\n\nFinancial Statements and MD&A\n\nVictory Square's condensed consolidated interim financial statements and\nManagement's Discussion and Analysis for the three and six months ended June\n30, 2026 are available under the Company's issuer profile on SEDAR+.\n\nThe Company's Q2 2026 financial statements were prepared in accordance with\nIAS 34, Interim Financial Reporting, using accounting policies consistent with\nIFRS Accounting Standards.\n\nReaders are encouraged to review the complete financial statements and\nMD&A in conjunction with this news release.\n\nOn behalf of the Board of Directors\n\nShafin Diamond Tejani\nChairman & Chief Executive Officer\nVictory Square Technologies Inc.\n\nABOUT VICTORY SQUARE TECHNOLOGIES INC.\n\nVictory Square Technologies Inc. is a publicly traded company that invests in,\ndevelops, and supports businesses operating across healthcare infrastructure,\ndigital health, artificial intelligence, immersive technologies, and other\nemerging sectors.\n\nThe Company maintains a portfolio of operating and development-stage\nbusinesses, with a particular focus on healthcare infrastructure, software\nplatforms, and technology-enabled services.\n\nPortfolio sectors include:\n\n * Digital Health & Healthcare Infrastructure\n * Artificial Intelligence (AI) & Machine Learning\n * Blockchain & Web3 Infrastructure\n * Virtual & Augmented Reality (VR/AR)\n * Gaming & Interactive Technologies\n * Climate Technology\n * Pet Health & Wellness\nVictory Square provides portfolio companies with access to capital,\noperational support, strategic guidance, and industry relationships to assist\nin their development and growth.\n\nThe Company is headquartered in Vancouver, British Columbia, Canada, and its\ncommon shares trade on the Canadian Securities Exchange (CSE: VST), the\nFrankfurt Stock Exchange (FWB: 6F6), and the OTC Market (OTCQX: VSQTF).\n\nFor more information, please visit\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4764824-1&h=2048346715&u=https%3A%2F%2Fedge.prnewswire.com%2Fc%2Flink%2F%3Ft%3D0%26l%3Den%26o%3D4701786-1%26h%3D531975911%26u%3Dhttp%253A%252F%252Fwww.victorysquare.com%252F%26a%3D%25C2%25A0&a=%C2%A0)\nwww.victorysquare.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4764824-1&h=1480187356&u=https%3A%2F%2Fedge.prnewswire.com%2Fc%2Flink%2F%3Ft%3D0%26l%3Den%26o%3D4701786-1%26h%3D296888116%26u%3Dhttp%253A%252F%252Fwww.victorysquare.com%252F%26a%3Dwww.victorysquare.com&a=www.victorysquare.com)\n.\n\nForward-Looking Information\n\nThis news release contains \"forward-looking information\" within the meaning of\napplicable securities laws.\n\nForward-looking information may be identified by words such as \"may\", \"would\",\n\"could\", \"should\", \"will\", \"intend\", \"plan\", \"anticipate\", \"believe\",\n\"estimate\", \"expect\" or similar expressions.\n\nForward-looking information in this news release includes, without limitation,\nstatements relating to:\n\n * The Company's strategy and business model\n * Portfolio company development and performance\n * Platform scaling and utilization\n * Capital allocation and monetization initiatives\n * Hydreight's publicly disclosed guidance and outlook\n * The anticipated benefits of VSDHOne and other platform-based offerings\n * Development timelines and regulatory pathways for Insu Therapeutics\n * Expansion initiatives across Pawsible Ventures and other portfolio companies\nForward-looking information is based on management's current expectations,\nestimates, assumptions, and beliefs as of the date of this release, including\nassumptions regarding:\n\n * Continued partner adoption and transaction volumes\n * Stability of regulatory frameworks in applicable jurisdictions\n * Availability of capital\n * Portfolio company execution\n * General economic and market conditions\nForward-looking information relating to Hydreight, including revenue guidance\nand margin expectations, is based on information publicly disclosed by\nHydreight and reflects Hydreight management's expectations regarding partner\nactivity, service mix, and operational capacity.\n\nActual results may differ materially from those anticipated due to a number of\nfactors, including, without limitation:\n\n * Changes in regulatory requirements\n * Execution risk at the portfolio company level\n * Variability in transaction volumes or partner performance\n * Revenue recognition and audit outcomes\n * Capital markets conditions\n * Clinical development risks\n * General economic and industry conditions\nThere can be no assurance that forward-looking information will prove to be\naccurate, and readers are cautioned not to place undue reliance on such\ninformation.\n\nExcept as required by applicable law, the Company does not undertake any\nobligation to update forward-looking information.\n\nUse of Non-GAAP Financial Measures\n\nThis news release references certain non-GAAP financial measures used by the\nCompany and its portfolio companies, including \"Adjusted Revenue\" and\n\"Adjusted EBITDA.\"\n\nThese measures do not have standardized meanings prescribed by International\nFinancial Reporting Standards (\"IFRS\") and may not be comparable to similar\nmeasures used by other issuers.\n\nFor Victory Square, non-GAAP measures are used to provide additional insight\ninto operating performance, portfolio activity, and the scale of underlying\nplatform economics.\n\nFor Hydreight Technologies Inc. (\"Hydreight\"), which is consolidated within\nthe Company's financial results, non-GAAP financial measures are defined and\nreported by Hydreight in its public disclosure, including its audited\nfinancial statements and MD&A.\n\nAs disclosed by Hydreight:\n\n * Adjusted Revenue reflects gross economic activity processed through the\nplatform and may differ materially from revenue recognized under IFRS due to\nrevenue recognition and deferral requirements.\n * Adjusted EBITDA is defined as net income (loss) before interest, taxes,\ndepreciation and amortization, and before certain non-recurring or\nnon-operating items, including transaction costs, share-based compensation,\nand other adjustments as disclosed in Hydreight's filings.\nThese measures are provided for informational purposes only and should not be\nconsidered in isolation or as substitutes for financial measures prepared in\naccordance with IFRS.\n\nReaders are encouraged to review Hydreight's public filings on SEDAR+ for full\ndefinitions, reconciliations, and related disclosures regarding its non-GAAP\nfinancial measures.\n\nIn addition, revenue recognition for certain platform-based offerings,\nincluding those facilitated through the VSDHOne infrastructure, may involve\nmanagement judgment and auditor review, and may result in differences between\nreported IFRS revenue and gross processing volumes or cash receipts during a\ngiven period.\n\nNotes:\n\n 1. \"Adjusted Revenue\" is a non-GAAP financial measure, and the figures reflect\ngross economic activity processed through the Company's platform and should\nnot be considered revenue recognized under IFRS. See \"Non-GAAP Financial\nMeasures\" section below for definition.\n 2. \"Adjusted EBITDA\" is a non-GAAP financial measure and reflects EBITDA plus\nadditions for atypical and non-recurring charges. See \"Non-GAAP Financial\nMeasures\" section below for definition.\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/victory-square-technologies-reports-first-half-2026-revenue-of-53-0-million-and-net-income-of-6-5-million-302866285.html\n(https://www.prnewswire.com/news-releases/victory-square-technologies-reports-first-half-2026-revenue-of-53-0-million-and-net-income-of-6-5-million-302866285.html)\n\nSOURCE Victory Square Technologies Inc\n\n\n\nFor further information about Victory Square, please contact: Investor Relations - Abbey Vogt, Email: ir@victorysquare.com; Peter Smyrniotis - Director, Email: peter@victorysquare.com, 604-428-7050\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS1830374/Victory-Square-Technologies-Inc-Victory-Square-Technologies-Repo.jpg?id=OA2923078\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-09-01T13:12:31.255512511Z","server_sent_at_ms":1788268351255},"received_at":"2026-09-01T13:12:31.480Z","source_url":"https://www.prnewswire.com/news-releases/victory-square-technologies-reports-first-half-2026-revenue-of-53-0-million-and-net-income-of-6-5-million-302866285.html"},"analysis":{"id":"121649","press_release_id":"132751","analysis_json":{"industry":null,"redFlags":["Hydreight gross margin declined to 19.4% from 35.9% due to shift to pharmacy sales and pricing concessions","Growth heavily concentrated in single subsidiary Hydreight"],"eventType":"earnings","narrative":"Victory Square reported massive growth in Q2 2026, with revenue rising 421% year-over-year to $28.0 million, driven primarily by its Hydreight subsidiary.\n\nFor the six months ended June 30, total revenue reached $53.0 million with net income of $6.5 million, a significant turnaround from a prior-year loss.\n\nThe company ended the quarter with $20.2 million in cash and reaffirmed Hydreight's full-year 2026 revenue guidance of approximately $150 million, while advancing its Insu and Pawsible portfolio initiatives.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Venture builder VST swings to profitability on 400%+ surge driven by digital health unit Hydreight."},"keyFigures":{"revenue":28000000,"guidance":"fiscal 2026 revenue guidance of approximately $150 million","revenueYoy":"421%","customDimensions":{"cash":20200000,"net_income_h1":6500000,"pawsible_fund":10000000,"gross_margin_q2":"19.4%","working_capital":34500000,"hydreight_q2_revenue":28000000}},"quotedText":"Q2 continued the strong operating momentum we saw at the beginning of the year","namedEntities":{"people":[{"name":"Shafin Diamond Tejani","role":"CEO"},{"name":"Abbey Vogt","role":"Investor Relations"},{"name":"Peter Smyrniotis","role":"Director"}],"products":["VSDHOne 2.0","Hydreight","semaglutide"],"companies":[{"name":"Victory Square Technologies","ticker":"VST"},{"name":"Hydreight Technologies","ticker":"NURS","relationship":"subsidiary"},{"name":"Hydreight Technologies","ticker":"HYDTF","relationship":"subsidiary"},{"name":"Insu Therapeutics","relationship":"portfolio company"},{"name":"Pawsible Ventures","relationship":"portfolio company"},{"name":"University of British Columbia","relationship":"partner"}],"dollarAmounts":[{"amount":"$28.0 million","context":"Q2 2026 revenue"},{"amount":"$53.0 million","context":"H1 2026 revenue"},{"amount":"$6.5 million","context":"H1 2026 net income"},{"amount":"$2.5 million","context":"Q2 2026 net income"},{"amount":"$20.2 million","context":"cash as of June 30, 2026"},{"amount":"$34.5 million","context":"working capital as of June 30, 2026"},{"amount":"$150 million","context":"fiscal 2026 revenue guidance"},{"amount":"$10 million","context":"Pawsible Ventures fund size"}]},"materialImpact":{"score":4,"reasoning":"Revenue grew over 400% year-over-year driven by subsidiary Hydreight, with the company swinging to a $6.5 million net income for the first half. Guidance of $150 million was reaffirmed, and cash position strengthened to over $20 million."},"tickerRelevance":{"others":[{"ticker":"NURS","relevance":"subsidiary"},{"ticker":"HYDTF","relevance":"subsidiary"}],"primary":"VST"},"globalImportance":25,"audienceRelevance":30,"eventTypeSecondary":["operations_update"],"importanceComponents":{"tickerTier":"small-cap","eventGravity":"hypergrowth_earnings","issuerAuthored":true}},"event_type":"earnings","event_type_secondary":["operations_update"],"sentiment":"bullish","material_impact_score":4,"narrative":"Victory Square reported massive growth in Q2 2026, with revenue rising 421% year-over-year to $28.0 million, driven primarily by its Hydreight subsidiary.\n\nFor the six months ended June 30, total revenue reached $53.0 million with net income of $6.5 million, a significant turnaround from a prior-year loss.\n\nThe company ended the quarter with $20.2 million in cash and reaffirmed Hydreight's full-year 2026 revenue guidance of approximately $150 million, while advancing its Insu and Pawsible portfolio initiatives.","key_figures":{"revenue":28000000,"guidance":"fiscal 2026 revenue guidance of approximately $150 million","revenueYoy":"421%","customDimensions":{"cash":20200000,"net_income_h1":6500000,"pawsible_fund":10000000,"gross_margin_q2":"19.4%","working_capital":34500000,"hydreight_q2_revenue":28000000}},"named_entities":{"people":[{"name":"Shafin Diamond Tejani","role":"CEO"},{"name":"Abbey Vogt","role":"Investor Relations"},{"name":"Peter Smyrniotis","role":"Director"}],"products":["VSDHOne 2.0","Hydreight","semaglutide"],"companies":[{"name":"Victory Square Technologies","ticker":"VST"},{"name":"Hydreight Technologies","ticker":"NURS","relationship":"subsidiary"},{"name":"Hydreight Technologies","ticker":"HYDTF","relationship":"subsidiary"},{"name":"Insu Therapeutics","relationship":"portfolio company"},{"name":"Pawsible Ventures","relationship":"portfolio company"},{"name":"University of British Columbia","relationship":"partner"}],"dollarAmounts":[{"amount":"$28.0 million","context":"Q2 2026 revenue"},{"amount":"$53.0 million","context":"H1 2026 revenue"},{"amount":"$6.5 million","context":"H1 2026 net income"},{"amount":"$2.5 million","context":"Q2 2026 net income"},{"amount":"$20.2 million","context":"cash as of June 30, 2026"},{"amount":"$34.5 million","context":"working capital as of June 30, 2026"},{"amount":"$150 million","context":"fiscal 2026 revenue guidance"},{"amount":"$10 million","context":"Pawsible Ventures fund size"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-01T16:27:39.660Z","global_importance":25,"audience_relevance":30,"importance_components":{"tickerTier":"small-cap","eventGravity":"hypergrowth_earnings","issuerAuthored":true}},"durationMs":259159,"modelName":"glm-4.7"}}