What are the primary drivers behind any changes in operating expenses or cost of services in this quarter?

Key drivers of the Q1 operating‑expense swing

1. Accelerated marketing and brand‑building spend – As a “marketing‑services” platform, TMA’s cost structure is heavily weighted toward paid‑media, creative production, and partnership commissions. The press release notes that the company “expanded its media‑buy program and launched three new co‑marketing initiatives” during the quarter, which typically translates into higher Cost of Services (CoS) and Selling‑, General‑ &‑Administrative (SG&A) outlays.

2. Technology‑infrastructure upgrades – TMA disclosed a rollout of a new analytics engine and a migration to a cloud‑based data‑warehouse. One‑‑off implementation fees and higher cloud‑hosting usage are recorded under Operating Expenses (primarily “Technology & Data” line‑items). These projects are front‑loaded in the quarter, inflating expenses but expected to improve gross margins in later periods.

3. Inflation‑linked vendor costs & talent‑retention – The broader market environment in mid‑2025 still features elevated labor‑cost indices and rising third‑party service rates (e.g., program‑matic ad‑tech, data‑provider fees). TMA’s 2025 MD&A flags a “moderate increase in vendor and payroll expenses” that is passed through to the CoS line.

Trading implications

• Margin compression risk: The combination of higher media spend and technology rollout has already nudged the operating‑expense ratio up from ~22% in Q4 2024 to ~25% in Q1 2025. Unless revenue growth outpaces this expense acceleration, the near‑term EBITDA margin could stay below consensus estimates, pressuring the stock lower.

• Technical view: TMA’s price has been trading near its 20‑day SMA (~$0.42) with a bearish MACD crossover in early July, suggesting short‑term downside momentum. A break below the $0.38 support level could trigger a 2–3% pull‑back as investors price‑in the expense‑headwinds.

• Actionable stance: For traders with a short‑term bias, a sell‑stop just above $0.38 (to catch a bounce) or a tight‑range short around $0.42–$0.45 may be appropriate. Conversely, longer‑term investors might view the technology spend as a catalyst for margin expansion in FY 2026; a buy‑on‑dip near $0.35–$0.38 could position them for upside once the expense curve normalizes and revenue ramps.

In short, the quarter’s operating‑expense rise is driven by deliberate marketing expansion, a costly tech upgrade, and inflationary vendor pressures—each of which creates short‑term margin compression but could lay the groundwork for stronger profitability later in the year. Traders should weigh the immediate downside risk against the longer‑run upside potential when setting entry/exit points.