Gross Margins Improve, Operating Expenses Decline 12%, and Canadian SME Business Recurring Revenue Grows Nearly 8%

LONDON, ONTARIO, CANADA, October 30, 2026 - Nerds On Site Inc. (CSE: NERD) (OTCQB: NOSUF) ("NERDS" or the "Company"), a provider of managed IT services, cybersecurity solutions and technology support for small and medium-sized enterprises (SMEs), today announced its financial results for the first quarter of fiscal 2027, ended August 31, 2026.

The Company continued to demonstrate meaningful year-over-year improvements in operating efficiency, gross margins and bottom-line performance, building on the operational progress achieved during fiscal 2026.

Despite a modest 2.5% reduction in quarterly total revenue, Nerds On Site increased recurring revenue, gross profit, reduced operating expenses and improved its net loss attributable to common shareholders by approximately 63%.

First Quarter Fiscal 2027 Financial Highlights

• Canadian business recurring revenue: increased to approximately $2.52 million from $2.34 million in the prior-year period, representing growth of approximately 7.7%.
• Gross Profit: Increased 1.3% to $771,370 from $761,316.
• Gross Margin: Improved to 24.7% from 23.8%, an increase of approximately 90 basis points.
• Operating Loss: Reduced 76% to $36,377 from $152,351, an improvement of $115,974.
• SG&A Expenses: Declined 11.8% to $800,646 from $907,753, a reduction of $107,107.
• Net Loss Attributable to Common Shareholders: Improved 62.6% to $71,667 from $191,738.

These results reflect the Company's continuing emphasis on disciplined expense management, improved service delivery economics and building a more efficient operating structure.

Continued Improvement in Operating Performance

The first quarter demonstrates the impact of management's ongoing initiatives to improve the Company's financial performance.

Operating expenses declined from $913,667 to $807,747, while gross profit increased despite lower overall revenue. Together, these improvements reduced the Company's quarterly operating loss by approximately $116,000.

Selling, general and administrative expenses declined to 25.7% of revenue compared with 28.4% in the corresponding prior-year quarter.

The reduction in expenses was driven primarily by lower payroll, office and administrative costs, including cost reductions within NOS Technical Services.

The Company's net loss attributable to common shareholders improved by $120,071 year over year.

Charlie Regan, CEO of Nerds On Site, commented:

"Our first quarter results demonstrate that the operational improvements we have been implementing are delivering measurable financial benefits. While revenue was modestly lower than the corresponding quarter last year, we increased gross profit, reduced operating expenses by nearly 12%, and improved our bottom line by approximately 63%."

"Following the two profitable quarters achieved in the second half of fiscal 2026, our focus remains on building a consistently profitable business. The significant year-over-year improvement in this quarter's results reinforces our confidence in the direction of the Company."

"We are particularly encouraged by the continued growth in recurring business revenue in Canada, which provides an important foundation for our managed services and cybersecurity expansion."

Growing Recurring Revenue and Strengthening Client Relationships

Recurring revenue remains a central component of the Company's long-term business strategy.

During the first quarter, Canadian business recurring revenue increased to approximately $2.52 million from $2.34 million in the prior-year period, representing growth of approximately 7.7%.

This performance reflects the resilience of the Company's established business Client relationships and the importance of recurring technology support services.

Nerds On Site continues to focus on expanding its managed IT, cybersecurity and proactive technology management offerings to existing and new SME Clients throughout Canada and the United States.

Building the Next Phase of Nerds On Site

Management is advancing several strategic initiatives designed to strengthen revenue opportunities, improve operational efficiency and support longer-term profitability.

Managed IT Services and Cybersecurity

The Company continues to expand its focus on managed technology services, cybersecurity and risk-aversion solutions for SMEs. These offerings are designed to strengthen Client relationships and support recurring revenue opportunities.

Artificial Intelligence Initiatives

Nerds On Site is developing AI-enhanced capabilities across its internal operations and Client-facing activities, including opportunities to leverage its proprietary ERP platform to improve Client engagement, identify additional service opportunities and enhance operational productivity.

Nerds On Line and Integrated Client Support

The Company is pursuing opportunities to combine remote support capabilities with its established on-site service network, providing a more comprehensive support offering for home offices, small businesses and residential Clients.

NOS Technical Services

The Company continues to develop its U.S. technical staffing and placement business while maintaining a disciplined approach to operating expenses and pursuing opportunities for renewed growth.

Financial Position and Cash Flow

At August 31, 2026, the Company reported cash and cash equivalents of $216,633 compared with $220,927 at May 31, 2026.

Management continues to focus on improving operating cash generation, strengthening liquidity and supporting the Company's growth initiatives.

Outlook

Nerds On Site enters fiscal 2027 with a continued commitment to improving financial performance while developing new revenue opportunities across its managed services, cybersecurity, AI product offerings, remote support and U.S. technical services operations.

The Company's priorities include expanding recurring revenue, leveraging artificial intelligence to improve productivity and Client engagement, and maintaining disciplined cost management.

"Our objective is clear," added Regan. "We are working to translate the operational improvements achieved over the past year into sustainable profitability and positive operating cash flow, while building additional revenue opportunities from our existing Client relationships and service capabilities."

About Nerds On Site Inc.

Nerds On Site Inc. (CSE: NERD) (OTCQB: NOSUF) is a technology services company providing managed IT services, cybersecurity solutions, hardware, software and on-site and remote technical support to small and medium-sized businesses and residential Clients across Canada and the United States.

Through its established network of technology professionals and proprietary ERP operating platform, the Company delivers personalized technology solutions designed to improve the productivity, security and reliability of its Clients' technology environments.

For more information, visit www.nerdsonsite.com.

Forward-Looking Statements

This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws. Such statements include, but are not limited to, statements concerning the Company's future financial performance, profitability, operating cash flow, growth strategies, managed services and cybersecurity expansion, artificial intelligence initiatives, Client engagement, and business opportunities in Canada and the United States.

Forward-looking statements are based on management's current expectations, estimates and assumptions and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These risks include, among others, market conditions, competition, Client demand, operating costs, financing requirements, liquidity constraints and the Company's ability to execute its business strategy.

Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update such statements except as required by applicable securities laws.

The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release.

For further information:

Nerds On Site Inc.

Website: www.nerdsonsite.com

CSE: NERD | OTCQB: NOSUF