Q3 2025 Highlights
Saltire delivered strong year-over-year growth in Q3 2025 as the Company continued executing on its strategy to build a diversified portfolio of resilient, cash-generating operating businesses.
For the nine months ended September 30, 2025, the Company reported revenue of $28.8 million, an increase of 144% compared to $11.8 million in the same period in 2024. Growth was driven primarily by the addition of SanStone Investments Ltd. ("SanStone"), together with continued strength in Strong/MDI Screen Systems Inc.'s ("MDI") cinema-related sales, which increased 16.4% year-over-year. Demand from major customers including IMAX®, Regal Cinemas and AMC remained robust, supported by an industry-wide shift toward premium auditoriums and laser projection upgrades.
Gross profit increased to $9.5 million, up 91% year-over-year, with gross margins of 32.9% (2024: 42%). As expected, margins reflect the consolidation of SanStone's high-volume, lower-margin dealership operations beginning in Q3. MDI maintained healthy margins supported by favourable product mix, particularly higher Eclipse and IMAX-compatible screen sales. Management expects consolidated margins to stabilize as SanStone's mix normalizes and integration initiatives advance.
Operating income was $1.0 million, compared to $2.4 million in the prior year period, reflecting the addition of SanStone's operating structure and higher public company, audit and regulatory costs following the reverse takeover with MDI completed in late 2024 (the "RTO Transaction"). Integration efforts are progressing as planned, with early alignment across finance, reporting and commercial functions.
The Company reported a net loss of $3.2 million, a significant improvement compared to the $42.9 million net loss in the prior-year period. The improvement is driven primarily by the one-time $44.6 million listing expense recorded in 2024 as part of the RTO Transaction. Current-period results also include non-cash fair value movements relating to warrant liabilities, interest and foreign exchange swaps, the Company's investment in Sound Tech Connect Corp., and the put option granted to the minority shareholders of SanStone.
Adjusted EBITDA for the period was $1.6 million, compared to $2.8 million in the prior year. The decline reflects the non-recurrence of the prior year's large listing-expense adjustment. Excluding non-cash adjustments, Adjusted EBITDA reflects continued underlying strength across both MDI and the newly added SanStone operations. SanStone contributed positively in its first two months under Saltire ownership, supported by steady demand across equipment, parts and service. Additionally, this performance delivered strong Normalized Operating Income for the period of $3.4 million, compared to $2.8 million in the prior year.
Saltire ended the quarter with $4.1 million in cash, supported by disciplined working-capital management and the financing structure implemented in connection with the SanStone acquisition. During the quarter, the Company drew US$50.1 million under its US$100 million senior secured credit facility with Sagard Credit Partners II ("Sagard"). Remaining availability under the facility will support future acquisitions and strategic growth initiatives.
"Q3 marked a pivotal step forward for Saltire," said Andrew Clark, CEO of Saltire. "With SanStone now a part of the platform and MDI continuing to execute, we are building a foundation of steady, diversified growth. The strength across both businesses gives us confidence as we continue to scale with discipline and a long-term ownership mindset."
MDI's project pipeline remained active through Q3 across cinema, immersive and simulation markets. The Company continues to benefit from long-standing partnerships with major exhibitors and holds exclusive supply agreements with ...
