Financial Analysis

In the following table, revenue is disaggregated by performance obligation and timing of revenue recognition. All revenue comes from contracts with customers. See Note 12 for the disaggregation of revenue by geographic region. For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Product 34,466 33,475 70,772 69,699 Transportation 4,229 4,091 8,521 8,029 License fees from Construction Partners 196 175 414 359 Total product revenue 38,891 37,741 79,707 78,087 Installation and other services 1,419 1,181 3,035 2,130 40,310 38,922 82,742 80,217 For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 At a point in time 38,695 37,566 79,293 77,728 Over time 1,615 1,356 3,449 2,489 40,310 38,922 82,742 80,217

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8. STOCK-BASED COMPENSATION In May 2020, shareholders approved the DIRTT Environmental Solutions Ltd. Long Term Incentive Plan, which was subsequently amended and restated in each of 2023, 2024 and 2025 and is currently called the DIRTT Environmental Solutions Ltd. Third Amended and Restated Long-Term Incentive Plan (as amended and restated, the LTIP). Each amendment and restatement was approved by our shareholders. The LTIP replaced the predecessor incentive plans, being the Performance Share Unit Plan (PSU Plan) and the Amended and Restated Stock Option Plan (Stock Option Plan). No further awards have been or will be granted under either the Stock Option Plan or the PSU Plan following initial approval of the LTIP in May of 2020, but both plans remain in place to govern the terms of any awards that were granted pursuant to such plans. The LTIP gives the Company the ability to award options, share appreciation rights, restricted share units, deferred share units, restricted shares, dividend equivalent rights, and other share-based awards and cash awards to eligible employees, officers, consultants and directors of the Company and its affiliates. In accordance with the LTIP, the sum of (i) 30,350,000 common shares plus (ii) the number of common shares subject to stock options previously granted under the Stock Option Plan that, following May 22, 2020, expire or are cancelled or terminated without having been exercised in full, have been reserved for issuance under the LTIP. Up …

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13. INCOME TAXES As at June 30, 2026, the Company had a valuation allowance of $ 30.5 million against deferred tax assets as the Company has experienced cumulative losses in recent years (December 31, 2025 $ 30.9 million ). …

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7. LONG-TERM DEBT Leasing Facilities Convertible Debentures BDC Loan Total Debt Balance at January 1, 2025 373 21,979 - 22,352 Accretion of issue costs - 338 - 338 Accrued interest 28 1,384 - 1,412 Interest payments ( 28 ) ( 1,394 ) - ( 1,422 ) Principal repayments ( 81 ) ( 314 ) - ( 395 ) Gain on extinguishment - ( 24 ) - ( 24 ) Exchange differences 17 1,101 - 1,118 Balance at December 31, 2025 309 23,070 - 23,379 Current portion of long-term debt and accrued interest 89 23,070 - 23,159 Long-term debt 220 - - 220 Balance at January 1, 2026 309 23,070 - 23,379 Issuances - - 6,908 6,908 Accretion of issue costs - 89 22 111 Accrued interest 12 396 135 543 Interest payments ( 12 ) ( 690 ) ( 134 ) ( 836 ) Principal repayments ( 43 ) ( 12,043 ) ( 300 ) ( 12,386 ) Exchange differences ( 10 ) ( 451 ) ( 133 ) ( 594 ) Balance at June 30, 2026 256 10,371 6,498 17,125 Current portion of long-term debt and accrued interest 90 10,371 1,759 12,220 Long-term debt 166 - 4,739 4,905 Revolving Credit Facility On February 12, 2021, the Company entered into a loan agreement governing a C$ 25.0 million senior secured revolving credit facility with the Royal Bank of Canada (RBC), as lender (the RBC Facility), as disclosed in our Annual Report on Form 10-K. The Company has extended the RBC Facility a number of times since 2023, including on November 4, 2025 (the Fifth Extended RBC Facility). The Fifth Extended RBC Facility matures on November 30, 2026 and is subject to the same borrowing base terms …

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15. RELATED PARTY TRANSACTIONS On August 2, 2024, DIRTT entered into a support and standstill agreement (the 2024 Support Agreement) with 22NW and WWT Opportunity #1 LLC (WWT), DIRTTs second largest shareholder at the time, which replaced the support and standstill agreement entered into with 22NW on March 22, 2024. Under the 2024 Support Agreement, both 22NW and WWT agreed to certain voting and standstill obligations, including voting in favor of the management director nominees at each of DIRTTs next two annual general meetings and voting in favor of the ratification of the Companys amended and restated shareholder rights plan. Additionally, each of 22NW and WWT had the right to designate a director nominee at each of DIRTTs next two annual general meetings, and is subject to certain restrictions with respect to commencing a take-over bid for the Company. The 2024 Support Agreement also permits WWT to acquire up to 4,067,235 additional shares through market purchases (representing approximately 2 % of the then issued and outstanding shares), which provides WWT with an opportunity to own the same number of shares as 22NW (being 57,447,988 shares, or approximately 29.8 % of the issued and outstanding shares as of the date of the 2024 Support Agreement). The 2024 Support Agreement otherwise prohibits each of 22NW and WWT from acquiring any additional shares. As a result of the share sale by WWT to the 726 Entities on February 13, 2026 as described below, WWT is no longer entit …

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4. REORGANIZATION Transformation Office In early 2025, a transformation office was set up, to accelerate the strategic transformation of our business by streamlining the Companys processes and procedures, supporting the Construction Services channel, and improving productivity across the Company (the Transformation Office). We are incurring one-time consultant costs to assist in, advise, and implement our transformation actions, as well as one-time termination benefits as a result of elimination of positions. The program is planned to be completed in 2026. For the three and six months ended June 30, 2026 and 2025, the following reorganization costs incurred relate to the above mentioned initiatives: For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Termination benefits 583 - 1,987 - Transformation Office costs 472 - 1,421 - Rock Hill Facility closure of operations - 174 - 384 Other costs 1 - 15 - Total reorganization costs 1,056 174 3,423 384 Reorganization costs in accounts payable and accrued liabilities at January 1, 2026 2,088 Reorganization expense 3,423 Reorganization costs paid ( 3,772 ) Reorganization costs in accounts payable and accrued liabilities at June 30, 2026 1,739 Of the $ 1.7 million of reorganization costs in accounts payable and accrued liabilities as at June 30, 2026 (December 31, 2025 $ 2.1 million), $ 1.67 million relates to termination benefits (December 31, 2025 $ 1.8 million) and $ 0.06 million relates to other …

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11. REVENUE In the following table, revenue is disaggregated by performance obligation and timing of revenue recognition. All revenue comes from contracts with customers. See Note 12 for the disaggregation of revenue by geographic region. For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Product 34,466 33,475 70,772 69,699 Transportation 4,229 4,091 8,521 8,029 License fees from Construction Partners 196 175 414 359 Total product revenue 38,891 37,741 79,707 78,087 Installation and other services 1,419 1,181 3,035 2,130 40,310 38,922 82,742 80,217 DIRTT sells its products and services pursuant to fixed-price contracts which generally have a term of one year or less. The transaction price used in determining the amount of revenue to recognize from fixed-price contracts is based upon agreed contractual terms with each customer and is not subject to variability. For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 At a point in time 38,695 37,566 79,293 77,728 Over time 1,615 1,356 3,449 2,489 40,310 38,922 82,742 80,217 Revenue recognized at a point in time represents the majority of the Companys sales. Revenue is recognized when a customer obtains legal title to the product, which is when ownership of the product is transferred to, or services are delivered to, the customer. Revenue recognized over time includes pre-construction services, license fees, installation and ongoing maintenance contracts wi …

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12. SEGMENT REPORTING The Company has one reportable and operating segment and operates in two principal geographic locations Canada and the United States. Revenue continues to be derived almost exclusively from projects in North America and predominantly from the United States. The Companys revenue from operations from external customers, based on location of operations, and information about its non-current assets, is detailed below. Revenue from external customers For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Canada 5,162 4,044 10,970 10,922 U.S. 35,148 34,878 71,772 69,295 40,310 38,922 82,742 80,217 Non-current assets As at June 30, As at December 31, 2026 2025 Canada 23,313 26,013 U.S. 12,527 14,104 35,840 40,117 DIRTT has one reportable segment: solutions. The DIRTT solutions segment derives revenues from customers by providing physical products and digital tools through our ICE software to create interior spaces for our customers across the commercial, healthcare, education and government industries. The solutions segment provides digital tools (access to ICE software) and physical products to create modular interior construction spaces for our customers. DIRTTs chief operating decision makers are its chief financial officer and chief executive officer. The chief operating decision makers assess performance for the solutions segment and decide how to allocate resources based on gross profit and net income (loss) that also is …

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