The Marketing Alliance Announces Financial Results for Fiscal Second Quarter Ended September 30, 2025

Second Quarter Fiscal Year 2026 Financial Review

• Revenues were $4,668,836 compared to $4,983,950 in the prior year quarter. Virtually all of the decline was in the construction business.

• Net operating revenue (gross profit) for the quarter was $851,155 compared to net operating revenue of $1,454,419 in the prior year quarter for a decrease of $603,264. The insurance distribution business accounted for 33% (or $197,955) of the decrease due to flat revenue matched with increased commissions costs from an adverse product mix and increased Business processing and distributor costs due in our call center and added business development expense. The construction business accounted for 67% (or $405,310) of the gross profit decrease due to uncontrollable delays with a large project resulting in costs in excess of revenues generated. Our employees were not able to make progress on a large job despite the costs of being onsite and committed to the project.

• Operating expenses were less this quarter than the prior year quarter, $701,648 compared to $967,780. An increase in compensation expense was offset by decreases in office and administrative expense and professional fees, as the Company hired employees that were previously its outsourced bookkeeping and administrative staff. Stock-based compensation expense also decreased from the prior year quarter.

• The Company reported operating income from continuing operations of $149,507 compared to $486,639, in the prior year quarter, with differences due to factors discussed above.

• Operating EBITDA (excluding investment portfolio income) of $202,480 was a decrease from the prior year quarter of $553,396. A note reconciling operating EBITDA to operating income can be found at the end of this release.

• Investment gain (loss), net (from non-operating investment portfolio) for the quarter was $155,417 as compared with $61,203 in the previous year quarter.

• Net income was $263,407, or $0.04 per share, compared to $401,511 or $0.05 per share in the previous year quarter.

• During the first fiscal quarter, on April 2, the Company announced that its Board of Directors had authorized a share repurchase program to repurchase up to 800,000 shares of the Company’s issued and outstanding common stock, effective immediately and concluding March 31, 2026. As of October 15, the Company had repurchased 319,506 shares under this program. The April 2 announcement followed the successful completion of an 800,000 share repurchase program announced in October 2024 and completed March 2025.

Balance Sheet Information

• TMA’s balance sheet on September 30, 2025, reflected cash and cash equivalents of $2.0 million; working capital of $5.3 million; and shareholders’ equity of $5.7 million; compared to cash and cash equivalents of $1.4 million, working capital of $6.1 million, and shareholders’ equity of $6.4 million as of September 30, 2024.
  

About The Marketing Alliance, Inc.

Headquartered in St. Louis, MO, TMA provides support to independent insurance brokerage agencies, with a goal of integrating insurance and “insuretech” engagement platforms to provide members value-added services on a more efficient basis than they can achieve individually.

Investor information can be accessed through the shareholder section of TMA’s website at: http://www.themarketingallianceinc.com.

TMA’s common stock is quoted on the OTC Markets (http://www.otcmarkets.com) under the symbol “MAAL”.

Forward Looking Statement
Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect TMA’s business and prospects. Examples of forward-looking statements include, among others, statements we make regarding our expectations of growth based upon our investments in our business, our recently announced stock repurchase program, our plans to reduce expenses, and our ability to undertake more suitable jobs and generate earnings, or reduce expenses, from our construction business. Any forward-looking statements contained in this press release represent our estimates, expectations or intentions only as of the date hereof, or as of such earlier dates as are indicated, and should not be relied upon as representing our views as of any subsequent date. These statements involve a number of risks and uncertainties, including, but not limited to, expectations of the economic environment, material adverse changes in economic conditions in the markets we serve and in the general economy; the ways that insurance carriers may react in their underwriting policies and procedures to the continuing risks they perceive from public health matters; our reliance on a limited number of insurance carriers and any potential termination of those relationships or failure to develop new relationships; privacy and cyber security matters and our ability to protect confidential information; future state and federal regulatory actions and conditions in the states in which we conduct our business; our ability to work with carriers on marketing, distribution and product development; pricing and other payment decisions and policies of the carriers in our insurance distribution business, changes in the public securities markets that affect the value of our investment portfolio; and weather and environmental conditions in the areas served by our construction business. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so.
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Note – Operating EBITDA (excluding investment portfolio income) 

The Company elects not to include investment portfolio income because the Company believes it is non-operating in nature.

The Company uses Operating EBITDA as a measure of operating performance. However, Operating EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or GAAP, and when analyzing its operating performance, investors should use Operating EBITDA in addition to, and not as an alternative for, income as determined in accordance with GAAP. Because not all companies use identical calculations, its presentation of Operating EBITDA may not be comparable to similarly titled measures of other companies and is therefore limited as a comparative measure. Furthermore, as an analytical tool, Operating EBITDA has additional limitations, including that (a) it is not intended to be a measure of free cash flow, as it does not consider certain cash requirements such as tax payments; (b) it does not reflect changes in, or cash requirements for, its working capital needs; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future, and Operating EBITDA does not reflect any cash requirements for such replacements, or future requirements for capital expenditures or contractual commitments. To compensate for these limitations, the Company evaluates its profitability by considering the economic effect of the excluded expense items independently as well as in connection with its analysis of cash flows from operations and through the use of other financial measures.

The Company believes Operating EBITDA is useful to an investor in evaluating its operating performance because it is widely used to measure a company’s operating performance without regard to certain non-cash or unrealized expenses (such as depreciation and amortization) and expenses that are not reflective of its core operating results over time. The Company believes Operating EBITDA presents a meaningful measure of corporate performance exclusive of its capital structure, the method by which assets were acquired, and non-cash charges and provides additional useful information to measure performance on a consistent basis, particularly with respect to changes in performance from period to period.