DIRTT Environmental Solutions Ltd.

Thank you for standing by. Welcome to the DIRT 2026 First Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Chief Transformation Officer Adrian Zarate. Please go ahead.

Thank you, operator, and good morning, everyone. Welcome to today's call to discuss DIRT's first quarter 2026 results. Joining me on the call today are Benjamin Urban, our Chief Executive Officer, and Faria Khan, our Chief Financial Officer. Today's call will include forward-looking statements within the meaning of applicable Canadian and United States securities laws. These statements are based on our current expectations and are not guarantees of future performance. Actual results may differ materially. We will also reference non-GAAP measures during this call. Reconciliations of those measures to GAAP can be found in our Form 10-Q for the quarter ended March 31st, 2026, which was filed with the Securities and Exchange Commission, or SEC, on May 6th, as well as in our supplemental materials. With that, I'll turn the call over to Freya to walk through our first quarter financial results.

Thank you, Adrian, and good morning, everyone. Revenue for the first quarter of 2026 was $42.4 million, an increase of 3% year-over-year, reflecting continued demand stability despite seasonality and ongoing macroeconomic uncertainty. Gross profit for the quarter was $13 million, representing a gross margin of 30.6% compared to 35.2% in the prior year period. Margin performance reflects higher aluminum prices, tariff-related headwinds, and lower margins within installation-related work. During the quarter, we incurred approximately 2 million in tariff-related costs, compared to 0.6 million of tariff mitigation costs in the prior year period. Tariffs represented approximately 4.7% of total revenue in the quarter. Total operating expenses were 16.3 million, compared to 14.9 million in the first quarter of 2025. This increase was largely attributable to 2.4 million of reorganization expenses related to the continued deployment of our transformation initiatives, primarily workforce and organizational actions to optimize the cost structure. Excluding stock-based compensation and reorganization expenses, our core operating expenses reduced from 13.9 million in Q1 2025 to 13 million in Q1 2026. Net loss after tax for the quarter was $3.3 million compared to a net loss of $0.7 million in the prior year. The increase in net loss was primarily driven by lower gross profit and higher reorganization expenses, partially offset by lower core operating costs and favorable foreign exchange movements. Adjusted EBITDA for the first quarter was $1.4 million or 3.3% of revenue compared to $2.1 million or 5.1% of revenue in the prior year period. From a liquidity perspective, we ended the quarter with approximately $15 million of cash on hand, reflecting repayment of the January convertible debentures, capital expenditures of approximately $0.7 million, and employee-related tax payments partially offset by $6.9 million of net proceeds from the BDC financing and positive operating cash flow of $1.2 million during the quarter. Total liquidity at quarter end was $25.1 million, inclusive of $10 million availability under our RBC revolving credit facility, and we remain in compliance with all financial covenants. With that, I'll turn the call over to Benjamin for additional commentary on the business.