Good morning, everyone, and thank you for joining us. Earlier today, Adcore released its Q1 2026 Financial Results. Today, we'll be walking you through these results and providing you with an update on the ongoing company initiatives. You might see some familiar faces here on the call today. I'm Martijn van den Bemd, Chief Partnerships Officer for the company and overseeing investor relations. With me today is Omri Brill, the Adcore CEO and Founder, and we also have Amit Konforty, Adcore CFO, on the call.
The agenda for today, before we go, begin, we go over some forward-looking statements you should be aware of while listening to the call, and then we follow that with some CEO opening remarks and the CFO financial highlights. Finally, we'll conclude with the Q&A, and if you have any questions throughout the call, please submit it through the question feature here in Zoom. We'll make sure to answer these at the end of the call. All right. Before we begin, I will give everyone a quick moment to review the statements.
Please bear in mind when listening to the call today that the management team might may use some forward-looking statements which are inherently uncertain in nature. I give everyone a couple seconds to go over. All right, very good. With that, I would like to pass the floor to Omri for some CEO opening remarks. Omri, the floor is yours.
Thank you very much, Martijn, and good morning, everyone. Martijn, can you stop sharing, please?
Yeah.
Thank you. Before I gonna start my own opening remarks, I wanna say again, it's our pleasure to discuss today the company financial results for Q1 2026. Actually, both myself and Martijn are now in Toronto, Canada, right? Not every day we have a chance to do the earnings call directly from where we are listed. It's an exciting opportunity for us, you know, to discuss it from Toronto, from Canada. Obviously, after this call, we have a full agenda lined up for us, right, Martijn? We're gonna meet with our team in Canada. We're gonna meet with clients. You know, we're gonna showcase them, you know, like, some of the exciting stuff that we've been working on. Again, it's our pleasure to be here today in Toronto and discuss the company Q1 2026 results.
Let me start by sharing my screen. Okay. Very good. A very strong start of 2026, I would say. Revenue up 22% year-on-year. APAC revenue growing 42%. The same, I would say, momentums that actually we saw in the end of 2025, in Q4 2025, carried well into 2026 as well, and this is, makes us very positive about what is still ahead of us for the entire 2026 year. To be honest, even if you're gonna talk like US dollar, because there was some influence of exchange rate during this quarter, then the results are even more dramatic. Almost 27% year-on-year increase, top line revenue if you talk in USD.
Gross profit, for example, 6% up USD compared to almost flat 10% in CAD, or maybe 1% up in CAD. Quarterly result, CAD 8.5 million. Very strong quarter for us compared to CAD 7 million in the previous year. 22% increase year-over-year CAD, 27% increase year-over-year USD. Gross profit, again, CAD 3.1 million, up 1% compared to the same period last year, or 6% actually USD compared to the same period last year. If you look at quality growth KPI, again, gross profit CAD 3.1 million, 1% up. Cash and cash equivalent, CAD 5.1 million. We saw a decline compared to Q4. I would say it's mainly seasonality decline.
A lot of the, I would say, spend and campaigns that were happening Q4 2026, and money was flowing, you know, like, during this quarter, actually was paid, you know, during Q1 2026. That's reflect in the numbers. When you look at, let's say, Amit gonna cover it in more detail, working capital, obviously you're not gonna see such a sharp decline. That's a good indicator that basically there's nothing dramatic happened. It's just, I would say, seasonality cash flow between the quarter. Just to wrap up some of the highlights, we cover most of them, I guess. Top line revenue, 8.5 million CAD, 22% year-on-year increase. Big numbers, big growth. Gross profit, 3.1 million CAD, 1% year-on-year increase.
APAC continue to show very strong momentum, 42% year-over-year growth. That's I would say the fastest growing market for us to date. EMEA almost, I would say, flattened. Actually, North America done 7%, but actually for us it's positive signal because we see North America is flattening. We did saw some softness in this important market in 2025. The company now believe that this softness is more or less ended. Actually, we expected to see this market going to positive growing trend in 2026 as the year unfold. I would say Amit will cover, you know, the result in more detail. I would keep some of the artwork to Amit to cover.
What actually I would like to discuss now is two new technology or developing a new technology the company is building, and basically we are very excited about, and I want to show both of them in action so you have better understanding what is under the hood, what type of AI innovation technology the company is building. Proposaly, obviously we've been talking about Proposaly during also the last earning calls, I think like there's a major change or shift in the product promising. Proposaly started as, I would say, document platform or sales document platform. The promise was quote to revenue. Basically we're gonna generate a very nice-looking quote for you. You can share it with your client.
You're going to close more deal for you and basically generate at the end of the day more revenue. In the end of the day, the platform was, you know, like manual platform. You need to still manually generate the quote and send it to your clients. Now what's Proposaly is becoming, I would say, it's a full agentic platform and are actually covering much bigger, I would say, promise of the sales funnel. Imagine sales funnels that runs themself, and basically with the new Proposaly, this type of imagination would be the reality. We're gonna have AI agent closing every deal from lead to revenue, and basically that's gonna be the new reality of Proposaly.
No longer quote to revenue, we are expanded to lead to revenue platform, but I would think the most important thing is that everything will be done agentically by AI agent. When we talk agentically, we talk about four different agents. We have Inbound Agent. That's an agent that sits or lives in the client website. Basically, every time a visitor coming to a client website, they can start interacting with this agent, and the agent goal is either to convert them to lead or even basically create and send like personalized quote to them, and that's a big promise. This agent is already live. It's already shipped, and it's already working, and I will give you a presentation soon. The second agent in the pipeline is Outreach Agent.
Imagine the Inbound Agent already converted the client into a lead, but this lead got cold. The Outreach Agent now going to take in charge and basically try to convert to warm again this lead and basically make sure that he's warm enough to send him a quote and basically start his process of converting him. We have the third agent, it's the Deal Agent. Once a quote is generated, this is the when the Deal Agent going to start taking command, and basically his role is very simple, yet important, making sure that this deal is converted. Basically it's no longer a quote, it's becoming a revenue. Basically the client signed the deal, closed the deal, paid for the deal. That's the Deal Agent responsibility. Last but not least, and is the customer agent.
The Customer Agent gonna take command once the deal is already closed. His role gonna be making sure the customer is happy, satisfied, that he gonna offer cross-sell and up-sell opportunities for the client. Between these four agents, we are talking a complete agentic sales funnel, you know, from lead to revenue. Inbound Agent sit on the client website. Outreach Agent, you know, a cold or outreaching, you know, cold leads and make sure that they are warm again. Deal Agent, you know, make sure that the deal is closed. Customer agent, make sure the customer is happy, and we can up-sell and cross them as well. That's a big promise, and basically that solve I would say of the issues of most businesses on planet Earth. I want to show you a live example how it's everything is working. Okay.
We are on a demo website of a pest control company from Phoenix, Arizona, ACTION. That's a real company, and basically what we did, we just like put a demo agent on the website, the Inbound Agent. I'm gonna now interact with him, ask him question about the services they are offering, and everything gonna be done in real-time. Basically this is not gonna be like, it's not like a pre-recorded demo or anything like that. What's going on right now, we're gonna start speaking with this agent. Basically that's look to you like maybe like a normal chat, but I would say now I can switch to voice mode as well. Hey, good morning.
Good morning. What's going on with pests at your place? What kind of-
It's a lot going on, to be honest.
Got it. Sounds like a busy situation. What pest are you seeing most right now? Ants, termites, roaches or rodents?
We have ants issue.
Got it. An ant problem. Are you looking for a one-time ant treatment or ongoing monthly ant protection to keep them from coming back?
I don't know. It's depend. How much is each?
For ants, a one-time treatment is typically around CAD 149. An ongoing monthly service is typically around CAD 49 a month. I can send you the details for the one-time ant treatment or the monthly ant protection. Want me to send one of them?
Yeah. I think let's start with the one-off and take it from there.
Perfect. I just need a couple of quick details, and I'll send it right over.
Okay. That was a real conversation I did with this agent, right? Everything was voice. He give me, like, a good answer. Everything, he got all the information about this, the specific two treatment that he have with ant control. In the end of the day, this bot just generated a custom quote for me. I can click on the quote it just, you know, generate for me and look at, look at the price quote itself. That's the quote. Like he say, it was CAD 149. We have add-ons options, I can, I can add, let's say, CAD 49 and add, like, multi-pest treatment as well. Maybe I have cockroaches or other issues in my home. You see the price quote already changed to, from CAD 149 to CAD 199. I can click Continue.
He ask me if I wanna add a tip, obviously, I can already paid or add a service charge from within the app itself. Final step gonna be going to payment. Everything is done, you know, from the app. The bot basically in real-time generated a real price quote for me, and that's a big promise. Whether it's gonna be the lead itself, or whether it's gonna be the actual, you know, like, sending the actual payment, then basically all of that's done now in real time with the bot, with the AI Agent. You can chat with him, you can speak with him like you're speaking with a human being. It's a very promising offering.
That's one, I would say, new feature, or it's not just a feature. That's the future of Proposaly where what you just see, and it's a big promising future. Proposaly is going fully agentic. We are turning from a, I would say, document flow type of platform for, you know, fully agentic sales funnel platform. Everything from lead to revenue and beyond. That's a big promise, and that's already in motion. Inbound Agent already live, shipped. Outreach Agent already in process. We are building it as we speak. Deal Agent should be ready by the end of this quarter, so we're talking about 1.5 months from now, and customer agent will be follow as well. Big promise with regards to this, I would say, agent and direction of Proposaly. I wanna cover another app.
I know we mentioned maybe the AI Studio app before, you never saw it in action. I wanna now reveal how it's look like and what basically you can do with the AI Studio app. The promise with the AI Studio app is design like a pro without being one. You can see, like, I don't know how familiar you are with online marketing, I would say the single biggest roadblock to nowadays in online marketing, I would say it's ad creative. That's the most important, you know, like, I would say, part with any campaign, and especially with rich type of ad creative, whether it's banners, whether it's UGC video, whether it's commercial video. All of this type of video now taking a long time to produce. It's a bottleneck. You need to have, like, a dedicated studio for it.
It's take time. It's not something that the online marketer usually can do himself. Basically, it's a real pain and a real bottleneck for, I would say, most businesses on planet Earth as well. AI Studio was designed and built to solve this problem. Let me share my screen again with regards to the AI Studio app, o ne second, o kay. Basically, I wanna cover few type of assets you can create with, you can create with the app. The first type of assets that we're gonna create is banners. Every asset start with a simple brief, right? Now, that's a real example of a real client of us in Canada, Hockey Stick Man. They're selling hockey gears online. Basically, we give them the brand.
You can pre-enter the brand, putting the brand booked, its logo and everything into the platform, so the platform will know this specific brand already. Give him the campaign brief, you know, what we're trying to sell. This, like, is going for a specific product, so I can check and upload the product images as well. I select what type of assets I wanna create, whether it's banner and image, and clip, UGC video, a commercial ad video. Once I selected, let's say in this specific example, banner, next will be to select the copy. Using AI, the system already pre-generated a copy for me. I can select a specific copy. I can customize it if needed. I can select a short copy. I can, like, select a longer copy, for example. It doesn't matter.
Once I'm happy with the copy, next will be, the system will give me some kind of banner design direction. It give me, like, multiple direction. We have this, like, with the person. This is just the gear in the front. You know, again, like, multiple design direction, and I have, like, eight different design concept I can choose from. I can generate more if I need it, if I'm not happy. Let's say in this specific example, we selected this specific design. This is the concept that we are happy with, and basically we continue to production. In the production stage, I can select which channel I would like to generate the assets to.
Each channel come with all sets of, let's say, sizes for the banners, and basically in this example I selected Meta, and it's generated, you know, like, four sizes for me. You can see, like, this specific example, this is more landscape type of, type of banner, for example. Just one second. Everything was done by AI. All this resizing was done, you know, from the concept banner by AI. There was zero human intervention. This is, like, a landscape banner, and this is, like, a more square banner, for example. Again, this is, like, real life, the real banner that the system is built, and everything done with, I would say, few clicks.
From start to finish, if you remember, I started the campaign, give him a brief, upload some product images, then selected the copy for the banner, then it give you, like, few design option. I selected one design option, and then let's say I selected I wanna generate now four sizes for Meta. Generated, done. It's everything, I would say, from A to Z, that maybe couple of minutes max. That's it. If the same process would need to be done manually, let's say by a creative designer, that can be hours of work, you know. Like, doing everything, choosing the right copy, give, like, few concept direction for the banner. Just creating the sizes, it's a lot of work by itself. Everything is done now with this, with the platform, that's nothing short than amazing.
This is one type of a video or asset I would like to create, I'd like to show you. Another type is very similar in concept, but it's a UGC video. Again, we start with the brief. This is for another client of ours. It's Tiny Love. They creating amazing baby toys. Once we created it give us a script of the video so we can select, you know, what type of, you know, like, what is the story we wanna say, basically. Next is cast. The AI offering us, you know, four different, I would say, people or personnel, like young mom in this example, to do the UGC, so I can select what is best working for me.
You have the full context of the brief, so you understand where I'm locating, if whether I'm in the U.S. or, you know, like, in other countries. The people would be reflecting, you know, like, the local people that are in this specific country. Once I select, you know, like, okay, I'm gonna go, Like this is the script that I want to the person to say. This is, like, how the person should look like, and then I basically creating this video, let's run it and see it ourself. This was creating by the AI.
Was why did nobody tell me about this sooner? My little one is obsessed, and I'm not even exaggerating right now.
From the beginning.
Hey, mamas. Why did nobody tell me about this sooner? My little one is obsessed, and I'm not even exaggerating right now.
Okay. That's nothing short than amazing. This is the real product. We upload this specific product. This product is live within the video. The person basically saying exactly the script we wanted to say. We created a very authentic look type of a UGC video. The entire process, again, seconds. That's. Imagine you have 20 product, 50 product, 500 product. It doesn't matter. For all of them, the system can create this type of UGC video in minutes, I would say. Final example I would like to give is what we call commercial type video, right? Again, started very similar with the brief. Again, Hockey Stick Man. I uploaded the sticks that I would like to promote. It's called Pro Blackout. It's now on sale.
It's more than 50% off. I selected I wanna do a TV-type commercial. Again, the system pre-generated to me, like, a different script and voiceover, I can say. I can selected one, let's say one story I would like to go for the commercial, and I have eight different, you know, type of, let's say, commercial I can create, you know, commercial type. It can be more of testimonials, can be other stories. You know, like, I can select from different, let's say, a different angle or direction. Once I created the, let's say Now I need to generate it. I can generate it landscape or vertical. It doesn't matter. Let's see the commercial that the AI generated for us.
CAD 300 sticks in a season. This one's the same carbon, same flex path, CAD 160.
Hockey Stick Man. Top-end sticks, half the price. Shop Pro Blackout.
From the beginning.
I've snapped CAD 300 sticks in a season. This one's the same carbon, same flex path, CAD 160.
Hockey Stick Man. Top-end sticks, half the price. Shop Pro Blackout
Cool. Again, this was generated by AI, look like CAD 1 million, look like a commercial we can now ship to TV and whatever we need to do with it. Again, we control everything. Control the script, we can control the end card, the message, everything that need to be saying. This is like I gave you now three example what can be generated with this app. If you need banners, if you need UGC video, if you need commercial grade, I would say TV grade commercial, all of that can be done now with this app. I never saw something like that, it's probably the best I would say AI Studio app out there nowadays. Correct me if I'm wrong, Martijn. Did you see anything better than this one?
It's very unique. I'm very thrilled about it.
Me too. Me too. That's make the 2 of us. Let me go back to my presentation. That's concluded my session. I know we covered, you know, some of the highlights of this quarter. Equally important, we covered, you know, some very exciting stuff we can do now with AI, whether it's Proposaly becoming fully agentic platform covering lead to revenue life cycles. You know, for most businesses on planet Earth, this is a massive opportunity. AI Studio, we can do magic now with using this app and solve a big problem, a big gap in the market as well. My final remark gonna be on the share price. Again, we cover it in every, I would say, earning call CAD 0.25, that's as of May 8th.
We've seen a very big upside if we're talking EV to Gross Profit, almost 600%. If we're talking EV to EBITDA, a 13% upside. Again, I think like shareholders should see Adcore as a different, as a different company right now, as an AI company. I think what we been demonstrate to you today, it's the future of Adcore. Hopefully you are excited as we are about this future and what this can bring to the company, what it can bring to potential client base, and what type of problems we are solving in the market today using AI. Thank you all very much.
Thank you, Omri. Very exciting stuff happening, and appreciate you showing this to the audience today. With that, I wanna hand it over to Amit Konforty, CEO of the company, for some financial highlights.
Martijn, good morning, everyone. Before beginning the financial overview, I would like to remind you that the following discussion will include GAAP financial measures as well as non-GAAP results. All amounts will be presented in Canadian dollars. The first quarter of 2026 showed a strong start to the year with a strong revenue growth. The results reflects continued business momentum and ongoing efforts to improve the company's market position and clients' relationships. Let's review in more detail. For the three months ended March 31st, 2026, we delivered revenue of CAD 8.5 million compared to CAD 7 million in the same period of 2025, an increase of CAD 1.5 million or 22%.
Gross profits for the three months ended March 31st, 2026, was CAD 3.1 million compared to CAD 3.1 million in the prior year, relatively stable year-over-year. Gross margins for the three months ended March 31st, 2026, were 37% compared to 44% in the same period last year. The decrease in margins is mainly driven by changes in client mix. As for operational expenses, R&D expenses for the quarter were CAD 0.4 million compared to CAD 0.6 million in the prior year. The decrease in expenses is mainly due to increased capitalization of development costs. SG&A expenses for the quarter were CAD 3.4 million compared to CAD 2.8 million in the prior year, an increase of CAD 0.6 million or 22%.
The increase was mainly driven by travel-related expenses and was partially impacted by foreign exchange rate fluctuations. Operating loss for the three months ended March 31st, 2026, was CAD 0.7 million compared to CAD 0.3 million in the same period last year. Net loss for the three months ended March 31st, 2026, was CAD 0.8 million compared to CAD 0.2 million in the same period last year, an increase of CAD 0.6 million. Revenues and gross profits. Looking at the quarterly results, we can see a strong year-over-year revenue growth. This continues the positive trend from the end of 2025, as shown in the full results to the right.
Gross profits remained relatively stable compared to the same period last year, and gross margins level were impacted by changes in client mix, and we expect margin to improve and stabilize as the year progresses. As for the geographical revenue breakdown for Q1 2026, APAC revenue saw a very strong year-over-year increase of 42%. This increase was primarily driven by increased activity from existing clients and the acquisition of new clients. EMEA and North America revenue decreased by 2% and 7% year-over-year respectively. The results were mainly impacted by changes in client media budgets and foreign exchange rate fluctuations. Terms of financial positions. We had cash and cash equivalent of CAD 5.1 million as of March 31st, 2026, compared to CAD 10.3 million at December 31st, 2025.
Total working capital amounted to CAD 4.2 million compared to CAD 5.1 million at December 31st, 2025, a decrease of CAD 0.9 million or 18%. As for the liability side of the financial position, we can see that the company is still debt-free. Adjusted EBITDA. The quarterly non-GAAP results reflects adjustments for the following items. Depreciation and amortization, share-based payments, and other non-operational items. For the three months ended March 31st, 2026, adjusted EBITDA was negative CAD 265,000, compared to positive CAD 208,000 for the same period in 2025. The decrease in adjusted EBITDA was mainly driven by the increase in operating loss. With that, I will turn the call back to Martijn van den Bemd.
Thank you so much, Amit. With that, we would like to move on to the Q&A portion. I will have a couple questions that came in. First question is for you, Omri. "North America declined 7%, but you are seeing stabilization signals. What specific actions are on the way to turn that into positive growth this year?"
Fair enough. Yes, we are happy, you know, with the direction that this important market is going. We believe it is stabilizing actually, we are expecting to see, like, it returning back to positive growth trend as the year unfold. I mean, there's a lot of focus now that we are putting on this market, whether it's Proposaly related. You know, that's gonna be the biggest market for us when we're gonna go fully on marketing with Proposaly. Again, a lot of initiatives that you're yourself involved with with regards to partnership as well. You know, you and I just came back from a very successful event, TikTok Invents in New York City. Again, this market is on the radar. We understand its importance. We understand what it can bring to a company like Adcore, and you're gonna see great things coming from this market in 2026 and beyond.
Great, Omri, and I echo that. A lot of opportunities on both partnership front and AI capabilities in our tech stack. The following question I think is a bit more financial in nature, so maybe for Amit to answer. "Constant currency growth was closer to 27%. Are you considering hedging strategies so reported results better reflect the underlying operational momentum?"
Thanks, Martijn. Basically, the company has past experience with hedging, which is not that good. We are trying as much as we can to align the revenue with the expenses for each of the different currencies that we work in. Let's say that the Israeli shekel is strengthening against the US dollar, then we take the proactive measures to reduce the expenses and to increase revenues in Israeli shekel in order to reduce as much as possible the exchange rate that impact on this.
Yeah, I can echo what Amit say. Basically, we tried before to hedge. It didn't really work because you don't really control the direction the currency is going. We believe that, A, the company is quite diverse, right? We have, we have revenue and expenses in multiple currency, whether it's AUD, Israeli shekel, USD, Canadian dollar, Hong Kong dollars, and others. Basically, we are very much diverse. The key things for us, I would say, is making sure that we, if we have expenses in Israeli shekels, then we need to have income in Israeli shekels as well covering. That's the best hedge, I would say, that we can take.
Thank you both. Thank you. The next question is about R&D spending, "which came down 24% year-over-year. Is that sustainable while you're simultaneously investing in Proposaly and AI Studio?"
Actually, it's a fair and interesting question. I would say a few things. Shareholders need to bear in mind that we are capitalizing most of the R&D expenses. Having said that, we also have passed, I would say, products that we capitalize, like Amphy, that we already now need to acknowledge them. Basically, in the end of the day, this is more or less flattening, you know, the R&D expensing. Some is capitalized, and some we need to show already. I do think that what change a lot is AI coding, right? What we can do now using AI, I would say, each developer can develop 3x, 5x, you know, more code, faster code than if we need even to compare it to one year ago.
I think, like, for the long run, with the same amount of developers or even sometimes even less, we can do much more. We can build much more sophisticated technology. I think, like, in that front, I would say things are looking very positive, for software development. means we don't need to increase cost so much, but we can definitely increase, you know, productivity and what we can ship and deliver.
That makes sense. Thank you. Another question on the trade payables. They dropped from CAD 8.4 million to CAD 4.8 million, consistent with your seasonal media disbursement explanation. Does the predictability of this holiday cycle give you better cash flow visibility going forward?
Amit, you wanna take this one?
Definitely. In the advertising business, we see this seasonality of Q4, which is very high in activity, which usually the payments for the Q4 expenses are done in Q1. We are very aware of this cycle. We expect it to be also in forward, in later years the same.
Yeah.
It is predictable.
I think like a typical year for us, we're starting like a, I would say losing cash a bit because of seasonality, and as the year unfold, we regain this cash, you know. We are continue to be positive about what we can do in 2026, again, this is part of the normal course of I would say the business seasonality.
Great. Thank you both. Another question that just came in on the financial side is, "Could you provide commentary about EBITDA growth trajectory in the rest of the year? Do we expect EBITDA to improve on a year-on-year basis moving forward instead of declining?"
Maybe I take that. I would say the short answer is yes, EBITDA should be positive for 2026. Again, Q1, it's, I would say, difficult quarter in that regard. You know, like there's a lot going on. There's a lot of expenses that are related to Q4 that actually happening in Q1. That's already part in the equation, I would say. Again, the EBITDA was more or less flattened. I think like if we look it yearly, then definitely we should be able to, you know, to showcase positive EBITDA year as usual, I would say.
Thank you. Thank you. Gonna move on to a couple questions that came in on the AI products and outlook on the product development. "First around Proposaly, the Inbound Agent is in production, and the AI Studio is getting strong beta feedback. Can you share any early quantifiable metrics such as users, pipeline influence, conversion rates, just to help investors seize the opportunity?"
Okay. I would say the following: It's a bit too early to, you know, to share this type of metrics with the, with the shareholders, but I would say in terms of, let's say, the size of opportunity is it's big as it can get. You know, like I say, if we're talking Proposaly, and it basically it solve, you know, like the issues that most of businesses in planet Earth are basically struggling with, which is basically sales.
Every business that start with lead and basically need to turn this lead into revenue, and again, this is most of the businesses in planet Earth, whether it's own services like the pest control ACTION company that we show from Arizona, whether it's a, I don't know, like in a college, for example, that basically want to recruit new student to start, you know, like a the next year with them. Whether it's a company, a tech company or services company like Adcore that serve, you know, clients for digital marketing or offering, you know, software to clients. All of these companies started their sales journey with a lead and basically need to convert this lead into revenue, and basically they need the tool like Proposaly, an agentic tool, to help them to achieve exactly that.
We're talking about billion of billion of billion of market share, and this is like the potential is, I would say, unlimited. This is just Proposaly. If we talk in AI Studio, then again, like online marketing, it's a massive business. We're talking hundreds of billions of CAD dollar every year going to online marketing, and like I said, the single biggest bottleneck nowadays in online marketing, it's digital assets. It's the videos. It's the banner. It's everything that you need to create. We are tackling or solving the biggest problem nowadays in online marketing, and that show you know, the potential of a tool like AI Studio F2F.
Like I said, we are getting like the feedback that we are getting from early user is like, "Wow." Like we couldn't believe like where were you guys, you know, like, I don't know, a year ago or even, six months ago. That's exactly what keep us, you know, so excited about the solution we are building and why we continue working so hard, you know, like building it, improving it, and making sure that we are the best out there, which we are currently.
That's great. Yeah, and that's a great testament how fast AI is developing and how Adcore is able to adapt and leverage that. Given the time, we have room for one or two more questions, and then I wanna head to the closing remarks. One more question around the product stack. "How are you thinking about cross-selling these new AI products into your existing Marketing Cloud client base?"
It's a good question, I would say, I wouldn't think that people would be surprised for my answer, the first phone calls that we are doing is for existing clients, right? If we launch AI Studio, the first phone calls were to existing clients. Hey, we have something amazing to show you guys, you know, we want you guys to test it, to try it, to see, to give us your feedback. I think like existing client base are the best type of client we can, you know, like, work with when we launch new product, whether it's Proposaly, whether it's AI Studio. Trust me, these are almost and always gonna be the first phone calls that we're gonna make when we launch something new. You can trust on it.
Thank you, Omri. The last question for today, "Is Proposaly strategically planning to position itself more aggressively into the growing high-ticket sales market?"
That's actually an interesting question or remark. I would say the following. I'll answer this question with a story. When we initially thought about Proposaly, and it was just an idea, you know, that sit in the drawer of nice things to do, startups to build, then basically the ICP that we were thinking about was home services, small businesses, you know? There's plenty of them on planet Earth. You know, if we talk in the U.S. alone, a pest control business, a $25 billion yearly just on pest control services in the U.S., so it's massive market. Add roofer, add construction, add, you know, like a air condition. Like, we're talking about, like, multi-multi-billions, you know, almost $1 trillion, I would say, just home services in the U.S. maybe, accumulative, or $500 trillion , you know?
Like, it’s big numbers that we are talking about. These numbers are actually built up from a lot of small businesses in different towns and cities within the U.S., for example, and other place in the world as well. We said, “Okay, let’s build something for this group of people.” Like I say, it’s not a small group, right? It’s like a big industry by itself. When we start building Proposaly, we say, wait, even company like us, like Adcore, should actually use Proposaly to send proposals, you know, to clients, and we are high ticket like this question saying markets.
I would say if you’re in a lead to revenue business, which most, you know, businesses in planet Earth are still in this business, then definitely you should use Proposaly. That would be my answer. I don't care if you are home services from, you know, like, from Arizona, for example, from Phoenix, Arizona, or you are an EdTech company sitting in Tel Aviv, Israel. It doesn't matter. You're in a lead to revenue business, you need to use Proposaly.
Thanks, so much, Omri. Very exciting to hear about this potential. With that, is there any closing remarks you wanna share with the audience today before we wrap up the call?
I think, like, we cover a lot, right? We start, and this is also something Amit mentioned as well, we ended up 2026 strong, and Q4 result was really strong for us, and we started Q1 2026 strong as well. That's mean the same momentum that we saw in the end of the year in 2025 is carried well into 2026. That's always keep us, you know, very positive about what we can achieve as the year unfold. What even keep us more positive is the, I would say, level of innovation and the depth of innovation now we can do using AI, and we give you, like, few, I think, like, astonishing example, you know, like about the Inbound Agent. I speak with him.
He on the fly generate a custom quote for me for unscripted issue that I have. Like, send it to other, you know, send it in the chat. He send it to my WhatsApp or email, whatever contact detail I gave him. You show, like, how I can easily in minutes create astonishing, you know, like banners, UGC video, commercial ads, you know. All of that that you see right now wasn't exist in the beginning of 2026. This is something we built and shipped during Q1 2026, and this is, like, that's amazing. Again, Esko is changing. We're becoming, like, a full AI company. The potential is massive for us. I think, like, that's the best story to say, to tell some right now. We are excited about what things ahead of us, you know? That's the honest truth.
All right. Exciting things ahead. And with that, we conclude the earnings call Q1 2026. We thank you, of course, Omri and Amit, and most of all, we thank you everyone who's joining this earnings call today. We look forward to seeing you next time, and for now wish you a great rest of your day. Thank you.
Thanks, guys.