Intellinetics, Inc.

Greetings. Welcome to Intellinetics second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Joe Spain, CFO. Thank you. You may begin.

Thank you. Good afternoon, everyone. I am pleased to welcome you to the Intellinetics 2026 second quarter conference call. Before we begin, I would forward-looking statements regarding Intellinetics, Inc. that are not historical facts. These forward-looking statements are based on the current expectations and beliefs of management, and they are subject to risk and others. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release issued today as well as risks and uncertainties included in the section under the caption Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations in Intellinex Annual Report on Form 10-K or the Quarterly Report on Form 10-Q filed today. Also, please note that on the call today, management will discuss the non-GAAP financial measure adjusted EBITDA. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP and may differ from non-GAAP financial measures presented by other companies. A reconciliation between GAAP and non-GAAP measures can be found in the press release issued today. With all that said, I would now like to turn the call over to Alison Forsythe, Intellinetics President and CEO. Alison, the call is yours.

Thank you, Joe. Good afternoon, everyone, and thank you for joining us. Q2 was my first full quarter as president and CEO of Intellinetics, and I want to start with this. I am confident in the opportunity ahead, and we are moving forward with urgency. Intellinetics has valuable assets. We have software solutions embedded in customer workflows, recurring revenue, strong customer relationships, and deep experience in markets where secure document management, Workflow, Automation, Compliance, and Information Access Matter. We also have a document services business that gives us access to customers with complex, document-intensive processes, customers that can often benefit from broader software solutions over time. Our Q2 results reflect both the current state of the business and the opportunity in front of us. Our SAS revenue grew 4.2% year over year and software margins remained solid. Total revenue was impacted by lower professional services volume and project timing in document services. We understand those dynamics and we are taking action to improve predictability, sharpen execution, and shift the business over time toward a higher quality recurring revenue mix. We are also seeing encouraging leading indicators. Software bookings improved in the first half of the year, pipeline coverage strengthened exiting Q2, and we launched our new website, giving us a clearer market presence and a stronger foundation for demand generation. These are important signs that our commercial execution is moving in the right direction. Taken together, these indicators give us confidence that the first half of 2026 is not representative of the execution profile we are building for the second half and beyond. In the first half of the year, we put several critical operating building blocks in place. We improved our forecasting visibility. We strengthened sales pipeline management. We established a more consistent management cadence. We improved project oversight, so key initiatives now have clearer owners, timelines, dependencies, and accountability. and we are using better operating data to make more disciplined decisions around product, technology, sales and resource allocation. Compared to where we were at the beginning of the year, we now have better visibility into the software pipeline, a more disciplined management cadence, clearer ownership of key initiatives, a new digital presence in market and an active product and technology prioritization process underway. These are early changes, but they are meaningful because they give us a stronger operating foundation for the second half of 2026 and for the larger transformation ahead. The second half of 2026 is all about execution. First, we are focused on SAS growth. We continue to expect double digit SAS growth for fiscal 2026 and we are focused on converting software opportunities into recurring revenue. Second, we are strengthening our commercial execution. That means clearer product positioning, stronger sales discipline, better partner motions and more consistent management of opportunities from pipeline to close. Third, we are sharpening product and technology priorities. We are evaluating where to accelerate where to modernize, where to partner, and where to stop investing. We are not going to spread resources evenly across every product. We are going to allocate talent and capital to the opportunities that can scale. Fourth, we are focused on operating leverage. As we grow recurring revenue and improve execution discipline, we expect to reduce operating variability and improve profitability over time. This is not a one-quarter transformation, but the path is clear. Over the next two to four years, we see an opportunity to build Intellinetics into a more focused, scalable software and services company with a larger recurring revenue base, stronger execution discipline, and a more predictable financial model. With that, I'll turn it over to Joe to walk through the financials in more detail.