Accord Financial Announces Fourth Quarter and Fiscal 2025 Financial Results and Amendment to its Banking Facility

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TORONTO — Accord Financial Corp. (TSX – ACD) today released its financial results for the fourth quarter and year ended December 31, 2025. 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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Two significant items contributed to a loss at year end. First, recognizing Accord’s imminent exit from the US market, the Company wrote off its US deferred tax assets. Second, the Company recorded a fourth quarter provision for credit losses of $15.0 million, which boosted the allowance for expected credit losses to $19.0 million. The Company’s President and CEO, Mr. Simon Hitzig, commented: “Throughout 2025 and into 2026, Accord has focused on repaying its outstanding debt and simplifying the business. Successful US asset sales led to a write-off of US tax assets. And the significant credit provision added to the loss.” The combination of these factors, along with operating losses, reduced book value per common share to $5.96 at year end.

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The Company faced the maturity of its senior secured credit facility (the “Bank Facility”) and unsecured demand and term notes (“Notes”) in July 2025 and the impending maturity of its listed and unlisted debentures (“Debentures”) in January 2026. Beginning on August 15, 2025 the Company announced a series of short-term amendments to its Bank Facility and Notes and today announced further amendments extending the maturity of the Bank Facility to May 15, 2026 and the maturity of the Notes to May 22, 2026. In addition to the maturity date extension, the Bank Facility amendment reduces the total commitment to $109 million, and incorporates milestones related to refinancing the Company’s debt. The Company also announced that on January 27, 2026, debenture holders approved amendments including an extension of the maturity date to July 31, 2026. “These extensions provide additional time to repay or refinance the Company’s debt,” noted Mr. Hitzig.

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In the fourth quarter of 2025 the Company’s Bank Facility declined by $39.8 million, closing the year at $148.2 million. At year end, the outstanding balance owing under the Notes was $17.5 million and under the Debentures was $27.0 million. In the first quarter of 2026, Accord completed several successful initiatives to exit the US market; on February 10th, the Company announced the sale of its 60% interest in BondIt Media Capital, and on March 13th the Company announced the sale of certain US portfolio assets. These transactions, together with a series of additional loan sales and repayments since December 31, 2025, have reduced the amount outstanding under the Bank Facility to $72.6 million as of March 27, 2026.

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Commenting further, Mr. Hitzig noted, “These initiatives have been aimed at reducing bank debt, as well as simplifying the business. Accord is now entirely focused on small business lending in Canada – one country, one target market, one team. While balance sheet issues must be addressed, “Accord 2.0” is well-positioned with an outstanding suite of products to serve the market we know best.”

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During the year the Company took steps to reduce overhead as revenue has declined owing to the smaller loan portfolio. Full year general and administrative expenses came in at $30.1 million versus $33.3 million in 2024. Within the 2025 figure are $3.1 million of professional fees primarily related to managing, and planning to repay, the Company’s debt obligations. While these unusual expenses have been a significant drag on performance, they will recede if and when the Company refinances its debt obligations.

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Mr. Hitzig further stated, “By reducing business complexity, the goal is to pave the way to refinance all of Accord’s debt – we continue to work with our financial advisors in this regard. While productive steps have been taken and our lenders have granted extensions to provide additional time, there are no assurances that such actions will be successful or sufficient to fully repay our outstanding debt when due or that our lenders will continue to grant extensions such that the Company can continue to operate 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, working capital loans and equipment finance. 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: