{"success":true,"data":{"pressRelease":{"id":"34524","rtpr_id":"nNFC4CLtrS","ticker":"MTEK","exchange":"TSX","all_tickers":["MTEK"],"title":"Metatek-Group Ltd. Reports First Quarter Fiscal Year 2026 Results","author":"Newsfile Corp","published_at":"2026-05-14T10:00:20.729Z","article_body":"Calgary, Alberta--(Newsfile Corp. - May 14, 2026) - Metatek-Group Ltd. (TSX:\nMTEK) (\"Metatek\" or the \"Company\") announced financial results for the three\nmonths ended March 31, 2026 (the \"Financial Statements\"). All amounts are\nexpressed in US dollars unless otherwise stated.\n\n\"First quarter results reflect the normal seasonality of our government-led\nbusiness, with activity building through the year as client programs move\nthrough budget and approval cycles,\" said Dr. Mark Davies, Chief Executive\nOfficer of Metatek. \"We executed well on repeat client work during the quarter\nand completed the first operational deployment of our new dFTG system, which\nperformed better than expected and was well received by the client. We exited\nQ1 with a strong Adjusted Backlog that provides visibility into the next 18\nmonths, and with a strengthened balance sheet following our IPO. Our focus is\non disciplined execution and converting backlog into revenue as activity\naccelerates through the year.\"\n\nFirst Quarter 2026 Highlights:\n*\nRevenue of $4.1 million, unchanged from the same period of the prior year.\n*\nFirst quarter revenue was primarily driven by two eFTG surveys for repeat\nclients, including a follow-on project in Angola and an initial project in\nWest Africa ahead of a larger planned survey expected to commence in Q2 2026,\nboth of which were completed within the quarter.\n*\nA dFTG project in Dubai commenced in late February 2026 but was temporarily\npaused due to regional military activity and airspace closures, with\napproximately 12% of data acquisition completed. The aircraft and crew\ndemobilized from the country after quarter-end, and there are plans to return\nand complete the project when conditions allow.\n*\nAdjusted Backlog(1) of approximately $77 million as at March 31, 2026,\nreflecting growth from the $46 million disclosed in the Company's IPO\npreliminary prospectus on March 2, 2026, is expected to be realized over the\nnext 18 months.\n*\nGross Profit(1) of $1.8 million, compared to $2.2 million for the same period\nof the prior year, representing Gross Profit Margin(1) of 44%, reflecting\nongoing operational costs incurred in Dubai while data acquisition paused.\n*\nAdjusted EBITDA(1) of $0.4 million after excluding IPO financing expenses and\nearly term loan repayment costs.\n*\nNet cash inflow from operating activities of $0.2 million (Q1 2025: $1.1\nmillion), which was after the deduction of $0.8 million on prepaid expenses\nfor aircraft engine investment to be made later in 2026.\n*\nTotal comprehensive loss of $11.1 million, driven by an $8.7 million non-cash\nrevaluation charge relating to debentures, which converted to equity in\nconnection with the IPO.\n*\nOn March 25, 2026, the Group completed an IPO on the Toronto Stock Exchange\nraising C$35 million or approximately $25 million in cash, or approximately\n$22 million after expenses. As part of the IPO, the Company's existing\nDebentures all converted into common shares and the majority of the warrants\nassociated with the Debentures were exercised.\n*\nThe outstanding amount of $6.8 million in relation to the Group's existing\nterm loan was paid off shortly after the IPO completed.\n*\nThe Group had cash and cash equivalents of $17.2 million as at March 31, 2026\nand total borrowings of $0.5 million ($1.4 million cash and cash equivalents\nas at December 31, 2025 and total borrowings of $6.5 million).\n\n(1) \"Adjusted EBITDA\" and \"Gross Profit\" are non-IFRS financial measures and\n\"Adjusted EBITDA Margin\" and \"Gross Profit Margin\" are non-IFRS ratios.\n\"Adjusted Backlog\" is a supplementary financial measure. Please refer to\n\"Non-GAAP Financial Measures\" section of this press release for more\ninformation on each non-IFRS financial measure and ratio and supplementary\nfinancial measure.\n\nSelected Interim Financial Information\n\nThe following is a summary of selected financial and operating information\nthat has been derived from, and should be read in conjunction with, the\nFinancial Statements.\n\n                                                                                 Three months ended               \n                                                                                 March, 31                        \n                                                                                 2026                   2025      \n                                                                                 $'000                  $'000     \n Revenue                                                                         4,075                  4,088     \n Cost of Sales                                                                                                    \n Direct costs                                                                    2,108                  1,662     \n Personnel costs                                                                 154                    182       \n Total Cost of Sales                                                             2,262                  1,844     \n Gross Profit                                                                    1,813                  2,244     \n Operating Expenses                                                                                               \n Personnel expenses                                                              950                    761       \n General and administrative expenses                                             2,113                  589       \n Depreciation expense                                                            518                    329       \n Total Operating Expenses                                                        3,581                  1,679     \n Operating Profit / (Loss)                                                       (1,768   )             565       \n Finance Costs                                                                                                    \n Interest costs                                                                  451                    497       \n Costs associated with settlement of term loan                                   384                    -         \n Settlement loss on term loan                                                    862                    -         \n Revaluation loss on convertible debt and warrants                               8,726                  -         \n (Gain) / Loss on disposal of right-of-use assets                                -                      (8     )  \n Total Finance Costs                                                             10,423                 489       \n Profit / (Loss) before taxation                                                 (12,191  )             76        \n Tax expense / (recovery)                                                        (1,100   )             -         \n Profit / (Loss) for the period                                                  (11,091  )             76        \n Other comprehensive loss:                                                                                        \n - translation (gain)/loss arising on the translation of foreign subsidiaries    6                      30        \n Total Comprehensive Profit / (Loss) for the period                              (11,097  )             46        \n Profit / (loss) per share ($)                                                                                    \n Basic and diluted                                                               (0.35    )             0.00      \n\n \n\nConference Call & Webcast\n\nMetatek management will host a conference call on Thursday, May 14, 2026 at\n10:00am ET to discuss its first quarter fiscal 2026 financial results.\n\n Date:            Thursday, May 14, 2026                                                                                                  \n Time:            10:00 am (ET)                                                                                                           \n Dial in number:  Canada/US: 1-844-763-8274 International: 1-412-717-9224 UK: 44-20-3514-3188                                             \n Replay:          Canada/US: 1-855-669-9658 International: 1-412-317-0088 Replay Access Code: 6259675 Available until June 14, 2026.      \n Webcast:         A live webcast will be available at:  https://www.gowebcasting.com/14715 The webcast will also be archived for replay.  \n\n \n\nAbout Metatek\n\nMetatek is a United Kingdom-based geophysical services company providing\nhigh-definition mapping of subsurface strategic and critical mineral natural\nresources, energy (including hydrocarbons), helium and hydrogen, for\nexploration and development. Unlike traditional exploration companies that\nrely solely on invasive or slow-moving technologies such as seismic surveys,\nMetatek delivers rapid data acquisition, processing and scientific\ninterpretation across air, land, and sea environments. Metatek supports\nnational energy security and fast-tracking of the discovery of hydrocarbons,\nminerals essential for sustainable power, such as lithium, nickel, and copper,\nas well as identifying reservoirs for natural hydrogen and geothermal energy.\n\nTo learn more, please visit: www.metatek-group.com\n\nFor further information:\n\nInvestor Relations\nDennis Fong\n(416) 283-9930\ninvestorrelations@metatek-group.com\n\nMedia Relations\nOliver Chesher or Hannah Martland\nPhone: +44 161 302 0671\nEmail: oc@galibierpr.co.uk\nEmail: hannah.martland@galibierpr.co.uk\n\nForward-Looking Information\n\nIn addition to historical financial information, this press release contains\n\"forward-looking statements\" and \"forward-looking information\" (collectively,\n\"forward-looking statements\") within the meaning of applicable Canadian\nsecurities legislation. In some cases, forward-looking statements can be\nidentified by the use of forward-looking terminology such as \"may\", \"will\",\n\"expect\", \"intend\", \"seek\", \"potential\", \"estimate\", \"anticipate\", \"believe\",\n\"could\", \"would\", \"should\", \"continue\", \"plans\", \"target\", \"is/are likely to\",\nor the negative of these terms, or similar expressions intended to identify\nforward-looking statements.\n\nForward-looking statements reflect the Company's current views with respect to\nfuture events and are subject to various known and unknown risks and\nuncertainties, which are necessarily based upon a number of estimates and\nassumptions that, while considered reasonable by Metatek, are inherently\nbeyond the ability of the Company to control or predict, that may cause the\nCompany's actual results, performance or achievements to be materially\ndifferent from those expressed or implied thereby, and are developed based on\nassumptions about such risks, uncertainties and other factors set out herein,\nincluding but not limited to: the ability of the Company to execute on its\nbusiness and growth strategy in the future; the ability of the Company to\nenforce contractual provisions and receive timely payments from its customers\nfor services rendered; the capability of the Company to continue to invest\nadditional capital into its assets and to obtain financing on acceptable\nterms, or at all, to fund capital expenditures; the level of costs and\nexpenses to be incurred by the Company, including with respect to interest,\ngeneral and administrative expenses and income tax expenses; the ability of\nthe Company to obtain and retain qualified staff, equipment and services in a\ntimely and cost efficient manner; the absence of any material litigation or\nclaims against the Company; the general stability of the economic and\npolitical environment and the regulatory framework regarding taxes and\nenvironmental matters in the jurisdictions in which the Company operates;\ncurrency exchange and interest rates; the impact of competition; and changes\nand trends in the Company's industry. The risks and assumptions outlined above\nshould not be construed as exhaustive.\n\nFor additional information with respect to certain of these risks or\nuncertainties and other factors that could affect Metatek's operations and\nfinancial results, reference should be made to the section entitled \"Risks and\nUncertainties\" section in our MD&A for the fiscal year ended December 31, 2025\nand to Metatek's continuous disclosure materials filed from time to time with\nthe Canadian Securities Regulatory Authorities, including the Company's most\nrecent Annual Information Form under the section entitled \"Risk Factors\",\nquarterly and annual reports, and supplementary information, which are\navailable under the Company's profile on SEDAR+ at www.sedarplus.ca.\nAdditional risks and uncertainties not presently known to the Company or that\nMetatek believes to be less significant may also adversely affect the Company.\n\nForward-looking statements contained in this press release are made as of the\ndate of this press release and the Company undertakes no obligation to update\nforward looking statements except as required by applicable law. Such\nforward-looking statements represent management's best judgment based on\ninformation currently available. No forward looking statement can be\nguaranteed, and actual future results may vary materially. Accordingly,\nreaders are cautioned not to place undue reliance on forward-looking\nstatements.\n\nNon-GAAP Financial Measures\n\nThis press release makes reference to certain non-IFRS financial measures and\nratios, such as \"Adjusted EBITDA\", \"Adjusted EBITDA Margin\", \"Adjusted\nBacklog\", \"Gross Profit\" and \"Gross Profit Margin\" which do not have\nstandardized meanings under IFRS and therefore may not be comparable to\nsimilar measures presented by other issuers.\n\nGross Profit and Adjusted EBITDA are non-IFRS financial measures and Gross\nProfit Margin and Adjusted EBITDA Margin are non-IFRS ratios. Adjusted Backlog\nis a supplementary financial measure. These measures are used by management\nand by external users of the financial statements, such as investors, research\nanalysts and others, to assess the financial performance of the Company's\nassets over the long-term and the Company's ability to generate sufficient\ncash to service indebtedness and fund maintenance and growth capital projects.\nIn addition, Gross Profit Margin, Gross Profit, Adjusted EBITDA, Adjusted\nEBITDA Margin and Adjusted Backlog are frequently used by securities analysts,\ninvestors and other interested parties in the evaluation of companies in\nMetatek's industry with similar capital structures. Gross Profit, Gross Profit\nMargin, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Backlog are all\nused to evaluate the effectiveness of the Company's business strategies, to\nmake budgeting decisions and to compare performance against that of peer\ncompanies using similar measures.\n\nGross Profit\n\nGross profit is a non-IFRS financial measure calculated as revenue less cost\nof sales. Gross profit is used by management and external investors to assess\nefficiency in managing cost of sales relative to revenue.\n\nGross Profit Margin\n\nGross Profit Margin is a non-IFRS ratio calculated as gross profit divided by\nrevenue. Gross Profit Margin is used by management and by external investors\nto assess efficiency in managing Cost of Sales relative to revenue.\n\n Gross Profit and Gross Profit Margin    Three months ended            \n                                          March, 31                    \n                                         2026                 2025     \n                                         $'000                $'000    \n Revenue                                 4,075                4,088    \n Total Cost of Sales                     2,262                1,844    \n Gross Profit                            1,813                2,244    \n Gross Profit Margin                     44%                  55%      \n\n \n\nAdjusted EBITDA and Adjusted EBITDA Margin\n\nAdjusted EBITDA is not a measure recognized under IFRS and does not have\nstandardized meanings prescribed by IFRS. Management defines Adjusted EBITDA\nas net earnings before: (i) all financing costs, including IPO costs; (ii)\nincome tax benefit or expense; (iii) depreciation and amortization; (iv) gain,\nlosses or impairments on the disposals of subsidiaries, assets, equity linked\nfinancial instruments; and (v) stock-based compensation and payments. Metatek\nuses Adjusted EBITDA as the primary non-IFRS financial measure of\nprofitability to evaluate the performance of the business. Management believe\nthat Adjusted EBITDA is meaningful because it presents the financial\nperformance of the business on a basis which excludes the impact of certain\nnon-cash items as well as how the operations have been financed.\n\nAdjusted EBITDA Margin is a non-IFRS ratio calculated as Adjusted EBITDA\ndivided by revenue. Adjusted EBITDA Margin is used by management and by\nexternal investors to assess efficiency in managing Operating Expenses\nrelative to our revenue. The following tables reconcile Adjusted EBITDA and\nAdjusted EBITDA Margin to their closest IFRS measures.\n\n Adjusted EBITDA                                   Three months ended                   \n                                                    March, 31                           \n                                                         2026                 2025      \n                                                         $'000                $'000     \n Profit / (loss) before taxation                         (12,191  )           76        \n Interest costs                                          451                  497       \n Costs associated with settlement of term loan           384                  -         \n Settlement loss on term loan                            862                  -         \n Revaluation loss on convertible debt                    8,726                -         \n (Gain) / loss on disposal of right-of-use assets        -                    (8     )  \n Operating Profit / (loss)                               (1,768   )           565       \n Share based payments                                    119                  253       \n IPO expenses                                            1,505                -         \n Depreciation expenses                                   518                  329       \n Adjusted EBITDA                                         374                  1,147     \n Adjusted EBITDA margin                                  9%                   28%       \n\n \n\nNot for distribution to U.S. newswire services or dissemination in the United\nStates.\n\n\nTo view the source version of this press release, please visit\nhttps://www.newsfilecorp.com/release/297417","article_body_html":"","raw_payload":{"data":{"id":"nNFC4CLtrS","title":"Metatek-Group Ltd. Reports First Quarter Fiscal Year 2026 Results","author":"Newsfile Corp","ticker":"MTEK","created":"2026-05-14T10:00:20.729Z","tickers":["MTEK"],"exchange":"TSX","article_body":"Calgary, Alberta--(Newsfile Corp. - May 14, 2026) - Metatek-Group Ltd. (TSX:\nMTEK) (\"Metatek\" or the \"Company\") announced financial results for the three\nmonths ended March 31, 2026 (the \"Financial Statements\"). All amounts are\nexpressed in US dollars unless otherwise stated.\n\n\"First quarter results reflect the normal seasonality of our government-led\nbusiness, with activity building through the year as client programs move\nthrough budget and approval cycles,\" said Dr. Mark Davies, Chief Executive\nOfficer of Metatek. \"We executed well on repeat client work during the quarter\nand completed the first operational deployment of our new dFTG system, which\nperformed better than expected and was well received by the client. We exited\nQ1 with a strong Adjusted Backlog that provides visibility into the next 18\nmonths, and with a strengthened balance sheet following our IPO. Our focus is\non disciplined execution and converting backlog into revenue as activity\naccelerates through the year.\"\n\nFirst Quarter 2026 Highlights:\n*\nRevenue of $4.1 million, unchanged from the same period of the prior year.\n*\nFirst quarter revenue was primarily driven by two eFTG surveys for repeat\nclients, including a follow-on project in Angola and an initial project in\nWest Africa ahead of a larger planned survey expected to commence in Q2 2026,\nboth of which were completed within the quarter.\n*\nA dFTG project in Dubai commenced in late February 2026 but was temporarily\npaused due to regional military activity and airspace closures, with\napproximately 12% of data acquisition completed. The aircraft and crew\ndemobilized from the country after quarter-end, and there are plans to return\nand complete the project when conditions allow.\n*\nAdjusted Backlog(1) of approximately $77 million as at March 31, 2026,\nreflecting growth from the $46 million disclosed in the Company's IPO\npreliminary prospectus on March 2, 2026, is expected to be realized over the\nnext 18 months.\n*\nGross Profit(1) of $1.8 million, compared to $2.2 million for the same period\nof the prior year, representing Gross Profit Margin(1) of 44%, reflecting\nongoing operational costs incurred in Dubai while data acquisition paused.\n*\nAdjusted EBITDA(1) of $0.4 million after excluding IPO financing expenses and\nearly term loan repayment costs.\n*\nNet cash inflow from operating activities of $0.2 million (Q1 2025: $1.1\nmillion), which was after the deduction of $0.8 million on prepaid expenses\nfor aircraft engine investment to be made later in 2026.\n*\nTotal comprehensive loss of $11.1 million, driven by an $8.7 million non-cash\nrevaluation charge relating to debentures, which converted to equity in\nconnection with the IPO.\n*\nOn March 25, 2026, the Group completed an IPO on the Toronto Stock Exchange\nraising C$35 million or approximately $25 million in cash, or approximately\n$22 million after expenses. As part of the IPO, the Company's existing\nDebentures all converted into common shares and the majority of the warrants\nassociated with the Debentures were exercised.\n*\nThe outstanding amount of $6.8 million in relation to the Group's existing\nterm loan was paid off shortly after the IPO completed.\n*\nThe Group had cash and cash equivalents of $17.2 million as at March 31, 2026\nand total borrowings of $0.5 million ($1.4 million cash and cash equivalents\nas at December 31, 2025 and total borrowings of $6.5 million).\n\n(1) \"Adjusted EBITDA\" and \"Gross Profit\" are non-IFRS financial measures and\n\"Adjusted EBITDA Margin\" and \"Gross Profit Margin\" are non-IFRS ratios.\n\"Adjusted Backlog\" is a supplementary financial measure. Please refer to\n\"Non-GAAP Financial Measures\" section of this press release for more\ninformation on each non-IFRS financial measure and ratio and supplementary\nfinancial measure.\n\nSelected Interim Financial Information\n\nThe following is a summary of selected financial and operating information\nthat has been derived from, and should be read in conjunction with, the\nFinancial Statements.\n\n                                                                                 Three months ended               \n                                                                                 March, 31                        \n                                                                                 2026                   2025      \n                                                                                 $'000                  $'000     \n Revenue                                                                         4,075                  4,088     \n Cost of Sales                                                                                                    \n Direct costs                                                                    2,108                  1,662     \n Personnel costs                                                                 154                    182       \n Total Cost of Sales                                                             2,262                  1,844     \n Gross Profit                                                                    1,813                  2,244     \n Operating Expenses                                                                                               \n Personnel expenses                                                              950                    761       \n General and administrative expenses                                             2,113                  589       \n Depreciation expense                                                            518                    329       \n Total Operating Expenses                                                        3,581                  1,679     \n Operating Profit / (Loss)                                                       (1,768   )             565       \n Finance Costs                                                                                                    \n Interest costs                                                                  451                    497       \n Costs associated with settlement of term loan                                   384                    -         \n Settlement loss on term loan                                                    862                    -         \n Revaluation loss on convertible debt and warrants                               8,726                  -         \n (Gain) / Loss on disposal of right-of-use assets                                -                      (8     )  \n Total Finance Costs                                                             10,423                 489       \n Profit / (Loss) before taxation                                                 (12,191  )             76        \n Tax expense / (recovery)                                                        (1,100   )             -         \n Profit / (Loss) for the period                                                  (11,091  )             76        \n Other comprehensive loss:                                                                                        \n - translation (gain)/loss arising on the translation of foreign subsidiaries    6                      30        \n Total Comprehensive Profit / (Loss) for the period                              (11,097  )             46        \n Profit / (loss) per share ($)                                                                                    \n Basic and diluted                                                               (0.35    )             0.00      \n\n \n\nConference Call & Webcast\n\nMetatek management will host a conference call on Thursday, May 14, 2026 at\n10:00am ET to discuss its first quarter fiscal 2026 financial results.\n\n Date:            Thursday, May 14, 2026                                                                                                  \n Time:            10:00 am (ET)                                                                                                           \n Dial in number:  Canada/US: 1-844-763-8274 International: 1-412-717-9224 UK: 44-20-3514-3188                                             \n Replay:          Canada/US: 1-855-669-9658 International: 1-412-317-0088 Replay Access Code: 6259675 Available until June 14, 2026.      \n Webcast:         A live webcast will be available at:  https://www.gowebcasting.com/14715 The webcast will also be archived for replay.  \n\n \n\nAbout Metatek\n\nMetatek is a United Kingdom-based geophysical services company providing\nhigh-definition mapping of subsurface strategic and critical mineral natural\nresources, energy (including hydrocarbons), helium and hydrogen, for\nexploration and development. Unlike traditional exploration companies that\nrely solely on invasive or slow-moving technologies such as seismic surveys,\nMetatek delivers rapid data acquisition, processing and scientific\ninterpretation across air, land, and sea environments. Metatek supports\nnational energy security and fast-tracking of the discovery of hydrocarbons,\nminerals essential for sustainable power, such as lithium, nickel, and copper,\nas well as identifying reservoirs for natural hydrogen and geothermal energy.\n\nTo learn more, please visit: www.metatek-group.com\n\nFor further information:\n\nInvestor Relations\nDennis Fong\n(416) 283-9930\ninvestorrelations@metatek-group.com\n\nMedia Relations\nOliver Chesher or Hannah Martland\nPhone: +44 161 302 0671\nEmail: oc@galibierpr.co.uk\nEmail: hannah.martland@galibierpr.co.uk\n\nForward-Looking Information\n\nIn addition to historical financial information, this press release contains\n\"forward-looking statements\" and \"forward-looking information\" (collectively,\n\"forward-looking statements\") within the meaning of applicable Canadian\nsecurities legislation. In some cases, forward-looking statements can be\nidentified by the use of forward-looking terminology such as \"may\", \"will\",\n\"expect\", \"intend\", \"seek\", \"potential\", \"estimate\", \"anticipate\", \"believe\",\n\"could\", \"would\", \"should\", \"continue\", \"plans\", \"target\", \"is/are likely to\",\nor the negative of these terms, or similar expressions intended to identify\nforward-looking statements.\n\nForward-looking statements reflect the Company's current views with respect to\nfuture events and are subject to various known and unknown risks and\nuncertainties, which are necessarily based upon a number of estimates and\nassumptions that, while considered reasonable by Metatek, are inherently\nbeyond the ability of the Company to control or predict, that may cause the\nCompany's actual results, performance or achievements to be materially\ndifferent from those expressed or implied thereby, and are developed based on\nassumptions about such risks, uncertainties and other factors set out herein,\nincluding but not limited to: the ability of the Company to execute on its\nbusiness and growth strategy in the future; the ability of the Company to\nenforce contractual provisions and receive timely payments from its customers\nfor services rendered; the capability of the Company to continue to invest\nadditional capital into its assets and to obtain financing on acceptable\nterms, or at all, to fund capital expenditures; the level of costs and\nexpenses to be incurred by the Company, including with respect to interest,\ngeneral and administrative expenses and income tax expenses; the ability of\nthe Company to obtain and retain qualified staff, equipment and services in a\ntimely and cost efficient manner; the absence of any material litigation or\nclaims against the Company; the general stability of the economic and\npolitical environment and the regulatory framework regarding taxes and\nenvironmental matters in the jurisdictions in which the Company operates;\ncurrency exchange and interest rates; the impact of competition; and changes\nand trends in the Company's industry. The risks and assumptions outlined above\nshould not be construed as exhaustive.\n\nFor additional information with respect to certain of these risks or\nuncertainties and other factors that could affect Metatek's operations and\nfinancial results, reference should be made to the section entitled \"Risks and\nUncertainties\" section in our MD&A for the fiscal year ended December 31, 2025\nand to Metatek's continuous disclosure materials filed from time to time with\nthe Canadian Securities Regulatory Authorities, including the Company's most\nrecent Annual Information Form under the section entitled \"Risk Factors\",\nquarterly and annual reports, and supplementary information, which are\navailable under the Company's profile on SEDAR+ at www.sedarplus.ca.\nAdditional risks and uncertainties not presently known to the Company or that\nMetatek believes to be less significant may also adversely affect the Company.\n\nForward-looking statements contained in this press release are made as of the\ndate of this press release and the Company undertakes no obligation to update\nforward looking statements except as required by applicable law. Such\nforward-looking statements represent management's best judgment based on\ninformation currently available. No forward looking statement can be\nguaranteed, and actual future results may vary materially. Accordingly,\nreaders are cautioned not to place undue reliance on forward-looking\nstatements.\n\nNon-GAAP Financial Measures\n\nThis press release makes reference to certain non-IFRS financial measures and\nratios, such as \"Adjusted EBITDA\", \"Adjusted EBITDA Margin\", \"Adjusted\nBacklog\", \"Gross Profit\" and \"Gross Profit Margin\" which do not have\nstandardized meanings under IFRS and therefore may not be comparable to\nsimilar measures presented by other issuers.\n\nGross Profit and Adjusted EBITDA are non-IFRS financial measures and Gross\nProfit Margin and Adjusted EBITDA Margin are non-IFRS ratios. Adjusted Backlog\nis a supplementary financial measure. These measures are used by management\nand by external users of the financial statements, such as investors, research\nanalysts and others, to assess the financial performance of the Company's\nassets over the long-term and the Company's ability to generate sufficient\ncash to service indebtedness and fund maintenance and growth capital projects.\nIn addition, Gross Profit Margin, Gross Profit, Adjusted EBITDA, Adjusted\nEBITDA Margin and Adjusted Backlog are frequently used by securities analysts,\ninvestors and other interested parties in the evaluation of companies in\nMetatek's industry with similar capital structures. Gross Profit, Gross Profit\nMargin, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Backlog are all\nused to evaluate the effectiveness of the Company's business strategies, to\nmake budgeting decisions and to compare performance against that of peer\ncompanies using similar measures.\n\nGross Profit\n\nGross profit is a non-IFRS financial measure calculated as revenue less cost\nof sales. Gross profit is used by management and external investors to assess\nefficiency in managing cost of sales relative to revenue.\n\nGross Profit Margin\n\nGross Profit Margin is a non-IFRS ratio calculated as gross profit divided by\nrevenue. Gross Profit Margin is used by management and by external investors\nto assess efficiency in managing Cost of Sales relative to revenue.\n\n Gross Profit and Gross Profit Margin    Three months ended            \n                                          March, 31                    \n                                         2026                 2025     \n                                         $'000                $'000    \n Revenue                                 4,075                4,088    \n Total Cost of Sales                     2,262                1,844    \n Gross Profit                            1,813                2,244    \n Gross Profit Margin                     44%                  55%      \n\n \n\nAdjusted EBITDA and Adjusted EBITDA Margin\n\nAdjusted EBITDA is not a measure recognized under IFRS and does not have\nstandardized meanings prescribed by IFRS. Management defines Adjusted EBITDA\nas net earnings before: (i) all financing costs, including IPO costs; (ii)\nincome tax benefit or expense; (iii) depreciation and amortization; (iv) gain,\nlosses or impairments on the disposals of subsidiaries, assets, equity linked\nfinancial instruments; and (v) stock-based compensation and payments. Metatek\nuses Adjusted EBITDA as the primary non-IFRS financial measure of\nprofitability to evaluate the performance of the business. Management believe\nthat Adjusted EBITDA is meaningful because it presents the financial\nperformance of the business on a basis which excludes the impact of certain\nnon-cash items as well as how the operations have been financed.\n\nAdjusted EBITDA Margin is a non-IFRS ratio calculated as Adjusted EBITDA\ndivided by revenue. Adjusted EBITDA Margin is used by management and by\nexternal investors to assess efficiency in managing Operating Expenses\nrelative to our revenue. The following tables reconcile Adjusted EBITDA and\nAdjusted EBITDA Margin to their closest IFRS measures.\n\n Adjusted EBITDA                                   Three months ended                   \n                                                    March, 31                           \n                                                         2026                 2025      \n                                                         $'000                $'000     \n Profit / (loss) before taxation                         (12,191  )           76        \n Interest costs                                          451                  497       \n Costs associated with settlement of term loan           384                  -         \n Settlement loss on term loan                            862                  -         \n Revaluation loss on convertible debt                    8,726                -         \n (Gain) / loss on disposal of right-of-use assets        -                    (8     )  \n Operating Profit / (loss)                               (1,768   )           565       \n Share based payments                                    119                  253       \n IPO expenses                                            1,505                -         \n Depreciation expenses                                   518                  329       \n Adjusted EBITDA                                         374                  1,147     \n Adjusted EBITDA margin                                  9%                   28%       \n\n \n\nNot for distribution to U.S. newswire services or dissemination in the United\nStates.\n\n\nTo view the source version of this press release, please visit\nhttps://www.newsfilecorp.com/release/297417"},"type":"article","timestamp":"2026-05-14T10:00:20.811742471Z","server_sent_at_ms":1778752820811},"received_at":"2026-05-14T10:00:20.983Z","source_url":"https://www.newsfilecorp.com/release/297417"},"analysis":{"id":"24486","press_release_id":"34524","analysis_json":{"industry":{"label":"Oil, Gas & Consumable Fuels","sector":"Energy"},"redFlags":["Gross profit margin declined from 55% to 44%","Adjusted EBITDA margin declined from 28% to 9%","Substantial total comprehensive loss of $11.1 million"],"eventType":"earnings","narrative":"Metatek-Group Ltd. reported Q1 2026 revenue of $4.1 million, unchanged from the same period last year.\n\nGross profit was $1.8 million, down from $2.2 million in Q1 2025, with a gross profit margin of 44% compared to 55%.\n\nAdjusted EBITDA was $0.4 million, a significant decline from $1.1 million in the prior year, with an adjusted EBITDA margin of 9% versus 28%.\n\nThe company reported a total comprehensive loss of $11.1 million, primarily driven by an $8.7 million non-cash revaluation charge related to debentures that converted to equity during the IPO.","sentiment":"bearish","agentHooks":{"shouldPost":true,"suggestedAngle":"Metatek reports flat revenue and declining margins, but has a strong adjusted backlog and recently completed an IPO."},"keyFigures":{"epsBeat":0,"revenue":4075000,"guidance":"","revenueYoy":"0%","customDimensions":{"gross_profit":1813000,"adjusted_ebitda":374000,"adjusted_backlog":77000000,"gross_profit_margin":"44%","adjusted_ebitda_margin":"9%"}},"quotedText":"First quarter results reflect the normal seasonality of our government-led business, with activity building through the year as client programs move through budget and approval cycles","namedEntities":{"people":[{"name":"Dr. Mark Davies","role":"Chief Executive Officer"}],"products":["dFTG system","eFTG surveys"],"companies":[{"name":"Metatek-Group Ltd.","ticker":"MTEK"}],"dollarAmounts":[{"amount":"$4.1 million","context":"Q1 2026 revenue"},{"amount":"$77 million","context":"Adjusted Backlog as of March 31, 2026"},{"amount":"$1.8 million","context":"Q1 2026 Gross Profit"},{"amount":"$0.4 million","context":"Q1 2026 Adjusted EBITDA"},{"amount":"$0.2 million","context":"Net cash inflow from operating activities in Q1 2026"},{"amount":"$11.1 million","context":"Total comprehensive loss in Q1 2026"},{"amount":"C$35 million","context":"IPO proceeds"},{"amount":"$25 million","context":"IPO proceeds in USD"},{"amount":"$22 million","context":"IPO proceeds after expenses"},{"amount":"$6.8 million","context":"Outstanding term loan paid off"},{"amount":"$17.2 million","context":"Cash and cash equivalents as of March 31, 2026"},{"amount":"$1.4 million","context":"Cash and cash equivalents as of December 31, 2025"},{"amount":"$6.5 million","context":"Total borrowings as of December 31, 2025"}]},"materialImpact":{"score":3,"reasoning":"Revenue was flat YoY, gross profit and EBITDA margins declined significantly, and the company reported a substantial loss. However, the strong adjusted backlog and recent IPO provide some positive context."},"tickerRelevance":{"others":[],"primary":"MTEK"},"globalImportance":35,"audienceRelevance":50,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"earnings report with mixed results","sectorWeight":"Energy","householdBrandBoost":0,"retailFavoriteBoost":0}},"event_type":"earnings","event_type_secondary":null,"sentiment":"bearish","material_impact_score":3,"narrative":"Metatek-Group Ltd. reported Q1 2026 revenue of $4.1 million, unchanged from the same period last year.\n\nGross profit was $1.8 million, down from $2.2 million in Q1 2025, with a gross profit margin of 44% compared to 55%.\n\nAdjusted EBITDA was $0.4 million, a significant decline from $1.1 million in the prior year, with an adjusted EBITDA margin of 9% versus 28%.\n\nThe company reported a total comprehensive loss of $11.1 million, primarily driven by an $8.7 million non-cash revaluation charge related to debentures that converted to equity during the IPO.","key_figures":{"epsBeat":0,"revenue":4075000,"guidance":"","revenueYoy":"0%","customDimensions":{"gross_profit":1813000,"adjusted_ebitda":374000,"adjusted_backlog":77000000,"gross_profit_margin":"44%","adjusted_ebitda_margin":"9%"}},"named_entities":{"people":[{"name":"Dr. Mark Davies","role":"Chief Executive Officer"}],"products":["dFTG system","eFTG surveys"],"companies":[{"name":"Metatek-Group Ltd.","ticker":"MTEK"}],"dollarAmounts":[{"amount":"$4.1 million","context":"Q1 2026 revenue"},{"amount":"$77 million","context":"Adjusted Backlog as of March 31, 2026"},{"amount":"$1.8 million","context":"Q1 2026 Gross Profit"},{"amount":"$0.4 million","context":"Q1 2026 Adjusted EBITDA"},{"amount":"$0.2 million","context":"Net cash inflow from operating activities in Q1 2026"},{"amount":"$11.1 million","context":"Total comprehensive loss in Q1 2026"},{"amount":"C$35 million","context":"IPO proceeds"},{"amount":"$25 million","context":"IPO proceeds in USD"},{"amount":"$22 million","context":"IPO proceeds after expenses"},{"amount":"$6.8 million","context":"Outstanding term loan paid off"},{"amount":"$17.2 million","context":"Cash and cash equivalents as of March 31, 2026"},{"amount":"$1.4 million","context":"Cash and cash equivalents as of December 31, 2025"},{"amount":"$6.5 million","context":"Total borrowings as of December 31, 2025"}]},"model_name":"Qwen/Qwen2.5-72B-Instruct-AWQ","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-05-14T10:08:44.098Z","global_importance":35,"audience_relevance":50,"importance_components":{"tickerTier":"mid-cap","eventGravity":"earnings report with mixed results","sectorWeight":"Energy","householdBrandBoost":0,"retailFavoriteBoost":0}},"durationMs":104440,"modelName":"george-droid-qwen-72b"}}