Accord Announces Second Quarter Financial Results

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TORONTO — Accord Financial Corp. (TSX – ACD) today released its financial results for the quarter ended June 30, 2026. The financial figures presented in this release are reported in Canadian dollars and have been prepared in accordance with International Financial Reporting Standards.

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During the first half of 2026, the Company successfully executed a number of strategic initiatives, notably, a series of transactions to exit the U.S. market. Through these and other initiatives, the outstanding balance on Accord’s senior secured credit facility (the “Bank Facility”) was reduced from $148 million as at December 31, 2025 to $55 million at June 30, 2026. This progress paved the way for a longer-term extension of the Bank Facility; the Company announced on June 15^th an amendment extending the maturity to October 31, 2026, to provide time for a comprehensive restructuring and refinancing of the balance sheet.

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Progress has continued; on June 15^th, the Company announced it was seeking approval of holders of its listed and unlisted 12% unsecured subordinated debentures due July 31, 2026 (the “Debentures”), with principal outstanding of $26.7 million, to amend certain terms designed to support the Company’s overall refinancing efforts. Subsequent to quarter end, on July 27^th, the Company announced the approval of Debenture amendments including extending the maturity date from July 31, 2026 to October 31, 2031 (provided that if the Company doesn’t refinance its Bank Facility by December 31, 2026, the Debentures will instead mature on October 31, 2027), reducing the rate to 7% and providing the Company flexibility to pay interest in cash or continue to accrue (as has been the case since July 1, 2025). The Company also announced similar amendments to the terms of unsecured demand notes and term notes held by the Hitzig family (“Hitzig Notes”), representing principal outstanding of approximately $11 million, reducing the interest rate to 0% for two years from July 31^st, and mirroring the maturity dates of the Debentures.

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Exiting the US, simplifying the portfolio, and extending the Debentures and Hitzig Notes sets the stage to refinance the Bank Facility. The Company’s President and CEO, Mr. Simon Hitzig, commented, “We continue to work with our financial advisors in this regard, aiming for a fourth quarter transaction. If successful, Accord can get back to the business of growing.”

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Successfully refocusing the Company on SME lending in Canada caused the Company’s finance receivables and loans to decline from $346 million at the start of the year to $142 million at June 30, 2026. Mr. Hitzig further noted, “Accord is now positioned to compete in the market where we have clear competitive advantages, however, the effort to refocus and repay debt has put us at a suboptimal scale. The first half numbers reflect this challenge, compounded by the continuing burden of professional and other fees related to managing and repaying our bank syndicate. Accord must grow again, but meaningful growth requires that we refinance the Bank Facility first.”

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The Company notes that while progress continues, there are no assurances that it will be able to fully repay its outstanding debt when due or that its lenders will grant further extensions, with uncertainty remaining as to the Company’s ability to continue as a going concern.

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About Accord Financial Corp.

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Accord Financial is one of Canada’s most dynamic commercial finance companies providing fast, versatile financing solutions including asset-based lending, factoring, inventory finance, equipment finance and working capital loans. By leveraging our unique combination of deep experience and independent thinking, we craft winning financial solutions for small and medium-sized businesses, simply delivered, so our clients can thrive.

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Note: Non-IFRS measures

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The Company’s financial statements have been prepared in accordance with IFRS. The Company uses a number of other financial measures to monitor its performance and believes that these measures may be useful to investors in evaluating the Company’s operating performance and financial position. These measures may not have standardized meanings or computations as prescribed by IFRS that would ensure consistency between companies using these measures and are, therefore, considered to be non-IFRS measures. The non-IFRS measures presented in this press release are as follows:

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1) Adjusted net loss and adjusted LPS. The Company derives these measures from amounts presented in its IFRS prepared financial statements. Adjusted net loss comprises shareholders’ net loss before restructuring and other expenses as well as the tax impact of the adjustments. Adjusted LPS (basic and diluted) is adjusted net loss divided by the weighted average number of common shares outstanding (basic and diluted) in the period. Management believes adjusted net earnings is a more appropriate measure of operating performance as it excludes items which do not relate to ongoing operating activities. The following table provides a reconciliation of the Company’s net loss to adjusted net loss:

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