Reeflex Solutions Inc. Announces Financial Results for the Three and Nine Months Ended May 31, 2025, and Provides Corporate Update

CALGARY, Alberta, July 30, 2025 (GLOBE NEWSWIRE) — Reeflex Solutions Inc. (TSXV: RFX) (“Reeflex” or the “Company”) today announced its financial results for the three and nine months ended May 31, 2025. Unless otherwise noted, all financial figures are presented in Canadian dollars.

Third Quarter Fiscal 2025 Highlights

• Revenue of $3.3 million, up 40.2% from $2.4 million in Q2 2025 and compared to $3.8 million for the same period in fiscal 2024.
• Adjusted EBITDA of $0.4 million, compared to $0.03 million in Q2 2025.
• Net loss of $3.2 million, including a one-time $3.4 million non-cash listing expense; excluding this item, normalized net income of $0.3 million
• Positive working capital of $3.9 million as at May 31, 2025 with minimal bank debt
• Recurring parts and service revenue from installed base of coiled tubing injectors accounted for approximately $4.3 million (47.9%) for the nine months ended May 31, 2025.
• Open Sales Orders of $5.8 million as at May 31, 2025

Commentary

“Following a challenging first half impacted by deferred capital spending by our customer base, Reeflex experienced improved operating results in the third quarter,” said John Babic, Chief Executive Officer of Reeflex. “Our recurring revenue model continues to provide a stable foundation for growth, and we are seeing positive signs of recovery in customer purchasing activity. Backed by a strong balance sheet and disciplined cost structure, we’re continuing to invest in targeted growth initiatives – enhancing our products, pursuing new market opportunities, and exploring strategic partnerships that align with our core strengths. We’re optimistic about the path ahead.”

Financial Summary

Note: Adjusted EBITDA is a non-IFRS financial measure. See “Non-IFRS Financial Measures” below.

Recent Developments

• Completed the reverse take-over (“RTO”) of Bigstack Opportunities I Inc. and began trading on the TSX Venture Exchange (“TSXV”) under the symbol “RFX”.
• Finalized $1.5 million credit facility with Royal Bank of Canada.
• Entered into market-making arrangement with Ventum Financial Corp.

Corporate Update

Reeflex is cautiously optimistic about continued recovery in customer demand heading into the final quarter of fiscal 2025 and into fiscal 2026. With an installed base of over 172 coiled tubing injectors, the Company benefits from a predictable stream of annual parts and service revenue, positioning it to capitalize on sustained activity in the energy sector.

The Company expects to continue investing in new market opportunities, product enhancements, field support, and operational efficiencies, supported by a strong balance sheet and disciplined cost management. Management continues to explore potential partnerships and strategic acquisitions that are complementary to the Company’s core operations.

Qualifying Transaction and RTO Background

As previously announced, on May 16, 2025, Reeflex successfully completed its Qualifying Transaction under the policies of the TSXV through the RTO of Bigstack Opportunities I Inc., a capital pool company. Reeflex began trading on the TSXV under the ticker symbol “RFX” on May 26, 2025.

Filing of Financial Statements and MD&A

The Company’s unaudited interim consolidated financial statements and related Management’s Discussion and Analysis (“MD&A”) for the three and nine months ended May 31, 2025, are available on SEDAR+ at www.sedarplus.ca.

Annual and Special Meeting

Reeflex is pleased to announce it has mailed a Notice of Meeting and Management Information Circular to shareholders of record as of July 18, 2025 in connection with the Annual and Special Meeting of the Company to be held on Friday, August 29, 2025 at 11:00 a.m. (MT) at Suite 900, 332 – 6 Avenue SW, Calgary, Alberta. The Company is offering shareholders the opportunity to participate in the Meeting virtually via live webcast at https://linkstar.marrellitrust.ca/pxlogin. Shareholders will not be able to vote such shareholder’s common shares at the Meeting by virtual attendance.

Shareholders are encouraged to read the meeting materials including the Management Information Circular that provides a detailed analysis of important considerations for voting at the meeting. These materials have been filed on SEDAR+ (www.sedarplus.com) and are available on our website at (www.reeflex.ca/investors/reports/).

Senior Management Change

Reeflex is pleased to announce that Derrek Dobko has been appointed Vice President, Finance and Corporate Controller of the Company. Mr. Dobko is an experienced financial executive with over 20 years experience in the oil & gas services, manufacturing and transportation industries. He is a Certified Professional Accountant with deep expertise in financial reporting, budgeting and internal controls.

In connection with his appointment, Mr. Dobko has resigned from the Company’s Board of Directors to fully dedicate his efforts to his executive responsibilities. Following his resignation, the Board will be composed of a majority of independent directors, in accordance with best practices in corporate governance.

The Board thanks Mr. Dobko for his contributions as a director and looks forward to his continued leadership in this key executive role.

About Reeflex Solutions Inc.

Reeflex is a public company delivering advanced engineering and manufacturing solutions across various industry sectors. Through our wholly-owned subsidiary, Coil Solutions Inc., we provide coil tubing injectors and downhole tools for the oil & gas sector. Our manufacturing division, Ranglar Manufacturing, specializes in custom-designed mobile equipment for a wide range of industrial applications. See www.reeflex.ca.

For Further Information, Please Contact:

John Babic
President & CEO
Reeflex Solutions Inc.
Tel: (780) 909-4220
Email: john.babic@reeflex.ca

Non-IFRS Financial Measures

This news release makes reference to certain non-IFRS financial measures, including “Adjusted EBITDA” and “Normalized Net Income” which are not standardized measures under International Financial Reporting Standards (IFRS) and may not be comparable to similar financial measures disclosed by other issuers.

“Adjusted EBITDA” is defined as earnings before interest, taxes, depreciation and amortization, adjusted for non-recurring items such as the Company’s RTO-related listing expense.

“Normalized Net Income” refers to net income (loss) adjusted to exclude one-time or non-cash items that are not reflective of ongoing operations. For the three months and nine ended May 31, 2025, this includes a non-cash $3.4 million listing expense.

Management believes these measures provide useful insight into the Company’s core operating performance and facilitate period-over-period comparisons.

These non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for other measures of performance prepared in accordance with IFRS.

A reconciliation of Adjusted EBITDA to net income (loss) is included in the Company’s MD&A.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws. Forward-looking statements typically include words such as “anticipate,” “believe,” “expect,” “intend,” “plan,” “estimate,” “may,” “will,” “should,” “outlook,” “potential,” or similar expressions suggesting future outcomes. Forward-looking statements in this release include statements regarding Reeflex’s expected revenue growth, margin improvements, product enhancements, strategic initiatives, and industry demand outlook.

These statements are based on current expectations and assumptions and involve risks and uncertainties that are difficult to predict. Actual results may differ materially due to various factors, including risks related to market conditions, supply chains, regulatory changes, and the competitive landscape, and the factors discussed in the Company’s Filing Statement dated April 14, 2025 and filed on SEDAR+. Readers are cautioned not to place undue reliance on forward-looking statements. Reeflex disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.