Beeline Holdings, Inc.

Good day and welcome to the D-Line first quarter 2026 analyst call. All participants will be in a listen-only mode. Should you need assistance, please signal conference specialists by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. And to withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the call over to Ms. Tiffany Milton, Chief Accounting Officer. Please go ahead, ma'am.

Thank you. Good evening, everyone, and thank you for joining us today to discuss D-Line's results for the first quarter of 2026. I'm Tiffany Milton, D-Line's Chief Accounting Officer, and joining us on today's call to discuss these results is Nick Laiusa, our Chief Executive Officer, Jess Kennedy, Chief Operating Officer, and Chris Moe, our Chief Financial Officer. Following our remarks, we will open the call to your questions. Now, before we begin with prepared remarks, we submit to the record the following statement. This conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding Beeline Holdings' expected future business trends, revenue growth and future revenue, changes in revenue components, Beeline equities performance, growth of its core business, the impact of recent cuts in expenses, technology changes, and net loss in adjusted EBITDA trends. Forward-looking statements are typically identified by words such as believe, expect, anticipate, plan, intend, seek, estimate, will, would, could, may continue, forecast, target, potential, project, undertake, and similar expressions. These statements are based on management's current assumptions, beliefs, and expectations and are not guarantees of future performance. Actual results may differ materially from those described in forward-looking statements due to various risks and uncertainties. These include, without limitations, the duration of the war with Iran and its effect on the economy, the ability of our Beeline equity partner to fund its equity transactions, and the risk factors we provided in our 2025 Form 10-K and prospective supplement dated March 10, 2026. We caution investors not to place undue reliance on any forward-looking statements made during this call. All forward-looking statements speak only as of the date of this presentation and are based on information available to Beeline as of today. We undertake no obligation to publicly update or revise these statements to reflect events or circumstances occurring after today's date, except as required by law. Now, with that said, I'd like to turn the call over to Nick Leuza. Nick, please proceed.

Good afternoon, everyone, and thank you for joining us. Q1 marked encouraging progress on the things we said we would do. Revenue more than doubled year over year. Unit economics moved in the right direction. Beeline Equity closed and funded its first transactions. We executed on the plan we set coming into 2026. Now, let me tell you how we're managing the business right now. The macro environment is what it is. Rates, capital markets, inflation, and geopolitical uncertainty, including the war in Iran, all factor in. Our board, our management team, and I are aligned on a measured approach. We are prioritizing profitable transactions over total volume. We are bringing down our cost base to extend our runway. We are leaning into the parts of the business that already work. Our second 2026 initiative was to validate B-line equity, a capital light and strategically backed opportunity. Simultaneously, we're delivering revenue and growing parts of our business that represent a less risky, more stable platform for profitable growth. Beeline Equity is a key part of that strategy. Beeline Equity was launched in partnership with TYTL Holdings, which is a related party. The partnership brings institutional discipline and capital markets expertise to a product category we believe is structurally novel. Beeline Equity closed its first transactions in the fourth quarter of 2026. Validation of the workflow is in hand, We are now moving from build to scale. On transactions completed to date, unit economics are slightly higher than our lending business, approximately 3.5% of transaction value, plus title revenue averaging approximately $1,500 per close. With zero balance sheet exposure, we monetize the transaction, not the loan. According to the Federal Reserve, U.S. homeowners hold approximately $35 trillion in home equity. the vast majority of which is effectively inaccessible without taking on new debt. For homeowners who do not want to take on new debt to access the equity, this is a path that did not previously exist. With workflow validation in hand and a budding pipeline, we are heading to scaling mode. The best piece is B-line equity is not tied to interest rates, so our revenue grows regardless of market conditions. B-Line Equity generates fee revenue per transaction with zero balance sheet risk. Structurally, it's the highest quality revenue line we have. As many of you know, we hold a minority interest in MagicBlocks, an AI-driven sales platform. We've been working hard to advance this technology as a minority owner. The team there is doing strong work, and the enterprise pipeline is building. MagicBlocks has recently onboarded four major lenders, and one top 10 lender. Magic Blocks' AI is proven to make meaningful industry improvements, and its platform supports Bob, Beeline's proprietary AI sales agent. We're very happy with the technology built inside of Magic Blocks, and we're currently evaluating the optimal structure for the relationship going forward. More to come on this. We recently announced a partnership with a builder in Dallas, Texas, called Structured Real Estate Group. We expect that revenue to start in Q3 and are currently embedding our platform into their web tools and online showrooms. This is not just an immediate opportunity to generate revenue in Q3 and Q4. It's also part of a longer-term strategy to partner with a group that can drive new property transactions in Texas, Florida, and other parts of the Southeast. I'm excited to visit this site next week in Dallas. Our platform rests on four revenue pillars. mortgage title beeline equity technology and ai over time a greater share of revenue will come from capital light fee-based streams that mix is the long-term margin story and distances beeline from other mortgage lenders leveraging the blockchain to fund pure equity transactions the mixed shift toward fee-based revenue is the key driver of long-term margin expansion Our target of achieving $100 million run rate by the end of 2027 remains a key focal point. That's a target. It's not a guarantee, but the building blocks are in place. Q1 was a big step in the right direction. I'll now turn it over to Jess.