Q2 revenue increases 421% year-over-year to $28.0 million; cash reaches $20.2 million and working capital increases to $34.5 million

VANCOUVER, BC, Sept. 1, 2026 /PRNewswire/ -- Victory Square Technologies Inc. ("Victory Square", "VST" or the "Company") (CSE: VST) (OTCQX: VSQTF) (FWB: 6F6), a venture builder focused on healthcare infrastructure, digital health, artificial intelligence and emerging technology platforms, today announced its financial results for the three and six months ended June 30, 2026, and provided an update on key portfolio developments.

Victory Square generated revenue of $28.0 million during Q2 2026, compared with $5.4 million during Q2 2025, representing an increase of approximately 421% year-over-year. Gross profit increased to $5.4 million, compared with $1.9 million in the prior-year period, while net income was $2.5 million, compared with $0.4 million in Q2 2025.

For the six months ended June 30, 2026, Victory Square generated $53.0 million in revenue, compared with $9.9 million during the same period in 2025, representing an increase of approximately 434% year-over-year. Gross profit increased to $10.5 million, compared with $3.4 million, while net income was $6.5 million, compared with a net loss of approximately $0.1 million during the comparable period in 2025.

The Company's consolidated revenue growth during the period was primarily attributable to the continued growth of Hydreight Technologies Inc. ("Hydreight"), while net income was primarily attributable to operating income from Hydreight and fair-value adjustments in portfolio investments.

Q2 and First-Half 2026 Financial Highlights

For the three months ended June 30, 2026:

   -- Revenue of $28.0 million, compared with $5.4 million in Q2 2025, an 
      increase of approximately 421% 
 
   -- Gross profit of $5.4 million, compared with $1.9 million, an increase of 
      approximately 182% 
 
   -- Net income of $2.5 million, compared with $0.4 million 
 
   -- Comprehensive income of $3.2 million, compared with $0.5 million 

For the six months ended June 30, 2026:

   -- Revenue of $53.0 million, compared with $9.9 million during the 
      comparable period in 2025, an increase of approximately 434% 
 
   -- Gross profit of $10.5 million, compared with $3.4 million, an increase of 
      approximately 206% 
 
   -- Net income of $6.5 million, compared with a net loss of approximately 
      $0.1 million 
 
   -- Comprehensive income of $7.4 million, compared with approximately $34,000 
      during the comparable period in 2025. 

As at June 30, 2026:

   -- Cash of $20.2 million, compared with $16.3 million at December 31, 2025 
 
   -- Working capital of $34.5 million, compared with $15.1 million at December 
      31, 2025 

"Q2 continued the strong operating momentum we saw at the beginning of the year," said Shafin Diamond Tejani, Chief Executive Officer of Victory Square Technologies. "Through the first six months of 2026, Victory Square generated approximately $53 million in revenue and $6.5 million in net income. At June 30, we had more than $20 million in cash and approximately $34.5 million in working capital, providing a strong financial foundation as we continue supporting the growth of our portfolio."

"What matters to us beyond the headline numbers is what is happening across the portfolio. Hydreight continues to scale the healthcare infrastructure we have spent years helping build. Insu Therapeutics is advancing the development of its buccal drug-delivery platform, and Pawsible is applying our venture-building approach to opportunities within companion-animal health."

"Our approach has remained consistent: identify companies and technologies in large markets, work alongside founders and management teams, provide capital and operational support, and help those companies progress from development toward scalable operations. Hydreight's growth provides a tangible example of what that model can look like as a platform reaches scale."

"We enter the second half of 2026 focused on execution and disciplined capital allocation. Our priorities include supporting Hydreight's continued growth, advancing our healthcare investments, supporting Insu's development programs, expanding Pawsible's activities and continuing to evaluate opportunities across the portfolio."

Portfolio Update

Hydreight Technologies -- Continued Growth Across U.S. Healthcare Infrastructure

Hydreight Technologies Inc. (TSXV: NURS) (OTCQB: HYDTF) is Victory Square's largest operating subsidiary and operates a digital health infrastructure platform supporting healthcare providers, businesses and direct-to-consumer healthcare brands across the United States.

Hydreight reported record Q2 2026 revenue of approximately $28.0 million, an increase of approximately 422% compared with $5.4 million in Q2 2025. Gross profit was approximately $5.4 million, while Hydreight generated approximately $2.5 million in net income during the quarter.

Q2 revenue increased approximately 12.5% sequentially from Q1 2026, while gross profit increased approximately 7%. For the first six months of 2026, Hydreight generated approximately $53.0 million in revenue, an increase of approximately 434% compared with $9.9 million during the same period in 2025.

Hydreight's virtual healthcare/direct-to-consumer segment generated approximately $22.8 million of revenue during Q2 2026 and approximately $42.7 million during the first six months of 2026, compared with approximately $1.0 million during the corresponding six-month period in 2025.

Hydreight's broader healthcare infrastructure spans all 50 U.S. states and includes a network of more than 3,000 nurses, more than 300 independent doctors and pharmacy relationships supporting its healthcare ecosystem. Hydreight continues to invest in VSDHOne 2.0 and the technology, provider, pharmacy and compliance infrastructure supporting its operations.

Hydreight ended Q2 2026 with approximately $20.0 million in cash and $35.1 million in working capital, compared with approximately $15.6 million in cash and $15.7 million in working capital at December 31, 2025.

Hydreight's revenue mix changed substantially as its pharmacy operations scaled. Pharmacy product sales increased to approximately $26.2 million during Q2 2026, compared with approximately $4.5 million during Q2 2025. The change in revenue mix contributed to a Q2 gross margin of approximately 19.4%, compared with 35.9% during the prior-year period. Hydreight has disclosed that the change primarily reflects the increased contribution from pharmacy sales and certain pricing concessions associated with initial transactions under new supporting pharmacy partnerships.

Hydreight has reaffirmed its previously announced fiscal 2026 revenue guidance of approximately $150 million, based on management's current internal planning assumptions and subject to the assumptions and risks contained in Hydreight's public disclosure.

Insu Therapeutics -- Advancing Buccal Peptide Delivery Technology

Victory Square continues to support the development of Insu Therapeutics Inc., a biotechnology company developing a patented buccal drug-delivery platform for peptide-based therapeutics.

Insu's platform is designed to evaluate the delivery of peptide therapies through the buccal mucosa, or inner cheek, as an alternative route of administration. Insu is not developing a new peptide molecule; its current research is focused on evaluating its delivery technology using existing peptide therapies, including semaglutide.

During the first half of 2026, Insu announced the completion of Phase I preclinical studies evaluating its buccal semaglutide program and received Research Ethics Board approval from the University of British Columbia to initiate Phase II studies.

The studies use innovator-manufactured semaglutide and are designed to evaluate pharmacokinetics, systemic exposure and performance under chronic administration. Insu's intellectual property and research programs are focused on peptide-delivery technologies and are supported by research conducted at the University of British Columbia.

Victory Square continues to support Insu as it advances its research and development programs.

Pawsible Ventures -- Building a Pet-Health Venture Platform

Victory Square continues to expand its activities in companion-animal health through Pawsible Ventures, a pet-health venture platform focused on identifying and supporting companies developing technologies and services across veterinary healthcare.

During 2026, Pawsible launched a $10 million venture fund, venture studio, pet-health incubator and global advisory board focused on supporting companies operating across areas including veterinary diagnostics, AI-enabled care, preventative health, therapeutics, veterinary software and consumer wellness. These initiatives build on Victory Square's previously disclosed strategy of extending its company-building model into adjacent healthcare markets.

In April 2026, Pawsible announced its inaugural cohort of eight companies, selected following the evaluation of several hundred applicants globally. The cohort includes companies operating across veterinary infrastructure, diagnostics, AI-enabled care, preventative health and consumer wellness.

Victory Square continues to evaluate opportunities within companion-animal health, including veterinary diagnostics, digital health, artificial intelligence, preventative care and therapeutics.

Victory Square's Venture-Building Strategy

Victory Square operates as an active venture builder, working alongside portfolio companies to provide capital, operational support, strategic guidance and access to its network of partners and resources.