Accord Announces Second Quarter Financial Results

TORONTO — Accord Financial Corp. (TSX – ACD) today released its financial results for the quarter ended June 30, 2026. The financial figures presented in this release are reported in Canadian dollars and have been prepared in accordance with International Financial Reporting Standards.

Note: all figures, except for average funds employed, reflect results of continuing operations

During the first half of 2026, the Company successfully executed a number of strategic initiatives, notably, a series of transactions to exit the U.S. market. Through these and other initiatives, the outstanding balance on Accord’s senior secured credit facility (the “Bank Facility”) was reduced from $148 million as at December 31, 2025 to $55 million at June 30, 2026. This progress paved the way for a longer-term extension of the Bank Facility; the Company announced on June 15 th an amendment extending the maturity to October 31, 2026, to provide time for a comprehensive restructuring and refinancing of the balance sheet.

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Progress has continued; on June 15 th , the Company announced it was seeking approval of holders of its listed and unlisted 12% unsecured subordinated debentures due July 31, 2026 (the “Debentures”), with principal outstanding of $26.7 million, to amend certain terms designed to support the Company’s overall refinancing efforts. Subsequent to quarter end, on July 27 th , the Company announced the approval of Debenture amendments including extending the maturity date from July 31, 2026 to October 31, 2031 (provided that if the Company doesn’t refinance its Bank Facility by December 31, 2026, the Debentures will instead mature on October 31, 2027), reducing the rate to 7% and providing the Company flexibility to pay interest in cash or continue to accrue (as has been the case since July 1, 2025). The Company also announced similar amendments to the terms of unsecured demand notes and term notes held by the Hitzig family (“Hitzig Notes”), representing principal outstanding of approximately $11 million, reducing the interest rate to 0% for two years from July 31 st , and mirroring the maturity dates of the Debentures.

Exiting the US, simplifying the portfolio, and extending the Debentures and Hitzig Notes sets the stage to refinance the Bank Facility. The Company’s President and CEO, Mr. Simon Hitzig, commented, “We continue to work with our financial advisors in this regard, aiming for a fourth quarter transaction. If successful, Accord can get back to the business of growing.”

Successfully refocusing the Company on SME lending in Canada caused the Company’s finance receivables and loans to decline from $346 million at the start of the year to $142 million at June 30, 2026. Mr. Hitzig further noted, “Accord is now positioned to compete in the market where we have clear competitive advantages, however, the effort to refocus and repay debt has put us at a suboptimal scale. The first half numbers reflect this challenge, compounded by the continuing burden of professional and other fees related to managing and repaying our bank syndicate.