SHAREHOLDER UPDATE – JANUARY 14, 2026
Digital Brand Media & Marketing Group, Inc. (“DBMM” and “The Company”), together with its flagship brand, and 100% operating subsidiary, Digital Clarity (DC), is following its normal practice to provide a Shareholder Update, issued concurrently with the filing of its 10-Q 1Q26 for the fiscal year first quarter ending November 30, 2025. The SEC Report is filed with the Securities & Exchange Commission via EDGAR.
Following our established practice, Management is providing this update to offer context and clarity alongside our required SEC quarterly report. This update shares progress on the Company’s strategic transformation and Digital Clarity’s evolution as an AI-driven go-to-market consultancy serving B2B technology companies.
As we detailed in our 10-K filing and earlier Shareholder Updates during the 2025 Fiscal Year, DBMM undertook a deliberate and disciplined pivot from commoditized digital marketing services to a higher-value, management consulting model powered by proprietary AI technology.
That transformation required investment, patience, and conviction ,while the market is always lagging, the traction is taking place. As has occurred with certain events in the past, trading volume will normalize and the expected metrics will result. as the validation, of our repositioning and pivot. The far more sophisticated and complex business model is being drilled down. The welcome result is the pivoted business model is far more remunerative, than our previous commoditized version. The first quarter of fiscal 2026 has demonstrated that the validation is clearly following the execution. The proprietary technology is being widely accepted.
While we’re in the early stages of this new chapter, the quarter showed Client engagement is improving, pipeline conversions are advancing, and the strategic work we’ve repositioned the business to deliver is gaining traction in the market.
Following recent press release, and the client release from Xamun during this first quarter, our GTM strategy development represents exactly what we’ve been building toward: complex, strategic engagements with B2B tech companies that need serious go-to-market expertise.
These engagements deliver two critical benefits. First, they generate premium consulting revenue that reflects the strategic value we provide. Second, they inform and validate how we’re building the Digital Clarity Intelligence Engine (DCIE) to scale this kind of strategic work across multiple clients simultaneously.
As our business model evolves, so too must our team capabilities. During the quarter, Digital Clarity expanded its team with two significant additions that strengthen our ability to deliver exceptional client outcomes and drive sustainable revenue growth.
DC brought on board a Chief Revenue Officer to lead our commercial strategy and client acquisition efforts. Bringing in a seasoned operating staff member is only done when the proprietary offering is secure. Naturally, beta testing continues as product evolves with the external environment. Equally additive, DC hired a former Gartner executive who earned recognition for outstanding performance during her tenure there. She joins us to ensure seamless client success and operational excellence as we scale our management consultancy model.
These aren’t simply headcount additions. They’re strategic investments in the capabilities required to capture the market opportunity the Company been positioning to address. Both bring the expertise, networks, and execution discipline that complement Digital Clarity’s existing strengths.
The Digital Clarity Intelligence Engine remains central to our long-term competitive advantage. DCIE currently continues in beta testing because proprietary Ai is developing very rapidly compared to other products. Many companies are releasing non-proprietary products which do not have sustainability and those companies will not last. That means the critical phase where we’re validating that our proprietary platform delivers the strategic insights and operational efficiency that our clients need.
Development of technology platforms like DCIE involves multiple iterations as we refine functionality based on real-world application. We’re building this specifically for B2B go-to-market strategy, incorporating Digital Clarity’s consulting methodology and frameworks. The ultimate metric is sustainability – the market will catch up.
The DCIE platform is designed to be far more comprehensive in its strategic capabilities. The deliverable creates a sustainable competitive advantage in the market. DBMM Management has stated consistently, beta testing teaches us what actually works versus what sounds good in theory. DCIE is being built based on real client needs, not creating a solution looking for a problem. This disciplined approach has taken time and resources, but it ensures the products being developed with growing market value and lasting commercial viability.
The broader market continues to validate our strategic direction. Research from BCG indicates that B2B companies waste approximately two trillion dollars annually on ineffective sales and marketing approaches. Meanwhile, McKinsey reports that a significant majority of marketing organizations lack the expertise to implement AI effectively. Digital Clarity delivers that expertise and therefore has a competitive advantage for both DBMM, its shareholders and its clients
Digital Clarity is positioning itself squarely in that gap, between massive demand for AI-powered GTM capabilities and the shortage of expertise to deliver them effectively.
Reggie James, Chief Operating Officer, Director of DBMM and Founder of Digital Clarity, commented on the quarter’s progress:
“We’re seeing the early indicators that our transformation is taking hold. Revenue activity is moving in the right direction and equally important, we’re attracting the talent that validates where we’re headed.
James added, “This is still early days, but the foundation we’ve laid over the past eighteen months is starting to bear fruit. That shift changes the economics of our business fundamentally. We’re building something sustainable here, and the first quarter shows we’re moving in the right direction.”
The first quarter of fiscal 2026 provides early validation that our strategic repositioning is working. We’re not declaring victory, we’re showing progress toward the goals we’ve articulated consistently over the past year. We had a delay in outcome in 2025 but there are all the indicators that 2026 will be our year.
The combination of improved revenue trajectory, strategic client engagements, expanded team capabilities, and ongoing DCIE development creates momentum heading into the remainder of fiscal 2026.
For shareholders who’ve maintained confidence through our transformation, this quarter demonstrates that patience is being rewarded with tangible progress. For those evaluating DBMM, there is support for how the Company has made progress one step st a time. The current at an inflection point where strategic investment is transitioning to market validation.
The Company continues to direct both new and existing shareholders to review the full text and particularly the Management Discussion and Analysis (MD&A) in our 10-Q filing for comprehensive detail on our financial position and strategic direction.
As always, DBMM Management thanks all stakeholders, investors, and supporters for their continued confidence as we execute on building long-term shareholder value.
Linda Perry and Reggie James
DBMM Management
SAFE HARBOR PROVISIONS
The foregoing contains certain predictive statements that relate to future events or future business and financial performance. Such statements can only be predictions, and the actual events or results may differ from those discussed due to, among other things, those risks described in DBMM’s reports filed with the SEC. Opinions expressed herein are subject to change without notice. This document is published solely for information purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy any securities in any state. Past performance does not guarantee future performance. Additional information is available upon request.