MISSISSAUGA, Ontario: VIQ Solutions Inc. (“VIQ” or the “Company”) (TSX: VQS), a global leader in secure, AI-driven voice and video capture technology and transcription services, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024. All figures are in U.S. dollars and prepared in accordance with International Financial Reporting Standards (IFRS).

VIQ delivered a $6.0 million year-over-year improvement in Adjusted EBITDA1, reaching $2 million, as the Company accelerated automation initiatives, streamlined operations, and executed strategic cost reductions. This significant financial turnaround underscores VIQ’s commitment to sustainable profitability and positions the Company for continued margin expansion and positive free cash flow generation in 2025.

Fiscal Year 2024 Financial & Operational Highlights

• Adjusted EBITDA: $2.0 million, marking a $6.0 million improvement from ($4.0) million in FY 2023, driven by technology-driven efficiencies, cost optimization, and advancements in vertical AI-driven automation including proprietary Domain-Specific Language Models (DSLMs), Post Processing and Diarization for superior transcription accuracy and efficiency.
• Revenue Stability & Margin-Focused Execution: Maintained stable customer volumes, resulting in 5% year-over-year revenue growth to $43.2 million, while prioritizing productivity improvements, regional margin expansion, and EBITDA optimization over top-line acceleration.
• ARR Renewals and New Awards: Successfully renewed and secured six large-scale contracts, with an estimated booking value of $38.9 million over three years, reinforcing the Company’s expected recurring revenue base.
• SaaS Expansion: Added 59 new SaaS clients in 2024, further accelerating the Company’s shift to a subscription-based model.
• Client Adoption & Utilization Growth: FirstDraft SaaS revenue doubled year-over-year, driven by increased customer engagement across all revenue segments.
• Enhanced AI Platform Performance: VIQ Solutions has further optimized its AI-driven transcription platform, enhancing accuracy, speed, and efficiency through proprietary vertical AI models and transformative productivity agents. These advancements strengthen service quality, automation, and operational performance.
• Gross Profit: Expanded 6% to $19.2 million, with gross margins rising to 44.5% versus 44.1% in 2023, driven by operational efficiencies and cost optimization.
• Selling & Administrative Expenses: Reduced by 24% in Q4 2024 compared to same period in prior year and reduced by 22% in FY 2024 compared to same period in prior year, reflecting strong strategic cost controls and workforce efficiencies.
• Net Loss Reduction: Improved by 51% for the year in comparison to same period in prior year, narrowing net loss to $7.0 million from a net loss of $14.3 million in 2023, demonstrating strong progress toward profitability.

Fourth Quarter 2024 Financial Highlights

• Revenue of $10.5 million, an increase of $0.2 million, or 2%, from the same period in the prior year.
• Gross profit of $4.4 million, a decrease of $0.3 million from the same period in the prior year.
• Net loss of $3.6 million, an increase of $0.6 million, from the same period in the prior year.
• Adjusted EBITDA of $0.5 million, an improvement of $1.1 million, or 175%, from the same period in the prior year.

2025 Outlook

VIQ’s Adjusted EBITDA turnaround reflects disciplined execution in cost management, automation, and operational efficiency, aligning with the industry’s shift toward AI-driven transcription and workflow optimization. As the multi-speaker recording and transcription market accelerates its transition to automation and SaaS-based solutions, VIQ remains committed to:

• Sustained Margin Expansion: Driving profitability through a strategic combination of cost discipline, automation, dynamic pricing, operational efficiencies, and revenue diversification—key levers for scalable growth.
• Deeper Client Integration: Enhancing security, workflow automation, and multimodal AI to improve accuracy, turnaround times, and client-specific KPIs, while maintaining adaptable human oversight where necessary.
• Accelerated SaaS Adoption: Capturing the growing enterprise demand for AI-powered transcription and compliance-driven documentation across legal, insurance, law enforcement, and media sectors.
• Advancing AI Platform Capabilities: Expanding domain-specific language models (DSLMs), intelligent post-processing, and multimodal AI innovations to enhance transcription accuracy, speed, and efficiency.

With a sharp focus on automation, cost discipline, and revenue stability, VIQ is positioned to strengthen margins, accelerate Adjusted EBITDA growth, and generate sustainable free cash flow in 2025, reinforcing its leadership in scalable, technology-driven transcription solutions.

Management Commentary

“2024 was a transformational year for VIQ as we focused on operational efficiency, automation, and strengthening our financial results,” said Sebastien Pare, CEO of VIQ Solutions. “Specifically, we prioritized productivity gains, completion of platform migrations, margin improvement across all regions, resulting in a meaningful Adjusted EBITDA turnaround within our existing annual recurring revenues. Our $6 million Adjusted EBITDA improvement, represents a 149% turnaround from 2023, underscores the impact of our technology-driven transformation. By leveraging vertical AI and a proven blueprint for productivity enhancement, we have accelerated automation, optimized costs, and improved scalability. We are well-positioned to drive further margin expansion and generate positive free cash flow in 2025.”

A copy of the Company’s audited financial statements and accompanying MD&A for the year ended December 31, 2024 and 2023 (collectively, the “Financial Information”) will be available under the Company’s profile on SEDAR+ at www.sedarplus.ca.

Conference Call Details

VIQ will host a conference call and webcast to discuss Financial Information on April 1, 2025, at 11:00 a.m. (Eastern time). The call will consist of updates by Sebastien Paré, VIQ’s Chief Executive Officer and Alexie Edwards, VIQ’s Chief Financial Officer followed by a question-and-answer period.

Investors may access a live webcast of the call on the Company’s website at www.viqsolutions.com/investors or by dialing 1-888-440-4052 (North America toll-free) or +1-646-960-0827 (international) to be connected to the call by an operator using conference ID number 4983233. Participants should dial at least 10 minutes before the call starts.

A replay of the webcast will be available on the Company’s website through the same link approximately one hour after the conference call concludes.

For more information about VIQ, please visit viqsolutions.com.

About VIQ Solutions

VIQ Solutions is a global provider of secure, AI-driven, digital voice and video capture technology and transcription services. VIQ offers a seamless, comprehensive solution suite that delivers intelligent automation, enhanced with human review, to drive transformation in the way content is captured, secured, and repurposed into actionable information. The cyber-secure, AI technology and services platform are implemented in the most rigid security environments including criminal justice, legal, insurance, government, corporate finance, media, and transcription service provider markets, enabling them to improve the quality and accessibility of evidence, to easily identify predictive insights and to achieve digital transformation faster and at a lower cost.

Forward-looking Statements

Certain statements included in this press release constitute forward-looking statements or forward-looking information (collectively, “forward-looking statements”) under applicable securities legislation. Such forward-looking statements or information are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

Forward-looking statements (typically contain statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project” or similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions “may” or “will” occur). These statements are only predictions. Forward-looking statements in this press release include but are not limited to statements with respect to the Company’s financial outlook in 2025, including achieving positive free cash flow in 2025, the Company’s ability to accelerate automation, optimize costs, and improve scalability in the future, expected margin improvement and Adjusted EBITA growth, the Company’s focus and its priorities, the filing of the Financial Information on SEDAR+ and the conference call to discuss the Company’s financial results.

Forward-looking statements are based on several factors and assumptions which have been used to develop such statements, but which may prove to be incorrect. Although VIQ believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on forward-looking statements because VIQ can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding, among other things, recent initiatives, cost savings from workforce and product optimization, cost reductions from the Company’s workflow solutions and that sales and prospects may increase revenue. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions that have been used.

Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that while considered reasonable by the Company as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the factors described in greater detail in the “Risk Factors” section of the Company’s annual information form and in the Company’s other materials filed with the Canadian securities regulatory authorities.

These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. Such estimates and assumptions may prove to be incorrect or overstated. The forward-looking statements contained in this press release are made as of the date of this press release and the Company expressly disclaims any obligations to update or alter such statements, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

VIQ Solutions Inc.
Consolidated Statements of Loss and Comprehensive Loss
(Expressed in USD dollars, unaudited)
	Year ended December 31
		2024			2023
Revenue	$	43,164,207		$	41,024,024
Cost of Sales		23,936,109			22,911,952
Gross Profit		19,228,098			18,112,072
Expenses
Selling and administrative expenses		17,005,500			21,738,200
Research and development expenses		650,551			679,589
Stock based compensation		397,618			955,571
Gain on revaluation of RSUs		(54,916	)		(197,711	)
Gain on revaluation of the derivative warrant liability		(145,445	)		(383,428	)
Foreign exchange loss		217,841			566,530
Depreciation		752,910			795,104
Amortization		3,342,762			4,553,255
Interest expense		1,689,415			1,358,579
Accretion and other financing costs		1,492,674			1,472,400
Gain on contingent consideration		–			(10,389	)
Impairment of goodwill and intangibles		–			157,464
Loss on modification of debt		360,522			549,646
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