NextPlat Corp

Welcome to the next PLAT for first quarter 2026 earnings conference call. Certain statements made during this conference call constitute forward-looking statements. These statements include the capabilities and success of the company's business and any of its products, services, or solutions. The words believe, forecast, project, intend, expect, plan, should, would, and similar expressions in all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties, and other factors, any of which could cause the company to not achieve some or all of its goals or the company's previously reported actual results. Performance, finance, or operatiness. including those expressed or implied by such forward-looking statements. More detailed information about the company and the risk factors that may affect the realization of forward-looking statements is set forth in the company's filings with the Securities and Exchange Commission, the SEC, copies of which may be obtained from the SEC's website at www.sec.gov. The company assumes no and hereby disclaims any obligation to update the four looking statements made during this conference call. Joining us on the call today are David Phipps, Chief Executive Officer, Amanda Ferriero, Chief Financial Officer, and Beirut Narkoot, Vice President of Healthcare Operations. I will now turn the meeting over to David Phillips for opening remarks.

Good morning and welcome to Nexplat's first quarter 2026 results conference call. Thank you for joining us. On today's call, we will discuss our first quarter results and highlight many of the improvements now being delivered in our business because of our turnaround efforts. In addition to discussing the results of the quarter, we will also share with you some insights into what we expect for the remainder of 2026. Specifically, the progress we are making on achieving our growth and profitability goals As is customary, I will begin today's call by briefly recapping the results of the first quarter. Then I will turn the call over to Brute Nukudza, our Vice President of Healthcare Operations, to discuss that segment in more detail. And then turn the call over to Amanda Ferriero, our Chief Financial Officer, to review our financial results. Following that, I will make closing remarks and then conclude the conference call by responding to questions that were submitted by our shareholders. Let me start by commenting on our NASDAQ listing status. On April the 27th, we announced that we regained our compliance with NASDAQ's minimum bid requirement as a result of us completing a required reverse split. As I indicated on our last call, this was not something we wanted to do. It was required to maintain our listing on NASDAQ, which we believed was in the best interest of our shareholders. With that behind us, instead of looking back, we are now 100% focused on delivering on the promise we see of a bright future for our company as evidenced by our significantly improved Q1 operating results announced today. These improvements are the direct result of our efforts to turn the business around and position it for long-term profitable growth. As you can see, we now have a fundamentally improved business featuring dramatic margin expansion supported by a leaner operating structure and an expanding domestic and international new business pipeline. With the turnaround largely complete, we are now looking to add scale and expand the scope of our business, in particular in our healthcare operations. This is highlighted by our expansion into all 50 states from our current base in Florida and other developments which we intend to announce shortly. I will discuss these and other critical developments in a minute. Looking at the first quarter, the positive trends established late last year and as outlined in our previous guidance announcement have continued. the business is now beginning to deliver tangible financial results. This is especially visible in terms of improved profitability as reflected by a consolidated gross margin percentage, which is now at record levels. This is largely driven by a dramatic improvement in our healthcare business, which represented about 68% of our revenue in the first quarter. As we previously indicated, our efforts here were focused on new business development, targeting higher margin, 340B covered entities and long-term care facilities, securing medication fulfillment contracts, re-engagement with former clients, and improving customer service. Initiated late last year, these efforts are now delivering sustainable margin improvement and are expected to support revenue growth later this year. This is a major contributor to our ability to achieve operational profitability in the latter half of 2026. Furthermore, As evidenced by our first quarter results, the combination of new, higher margin revenue and a greatly streamlined and cost-efficient operating structure means that we have created a clear path to meaningful reductions in operating losses in the second half of the year. At this point, I'd like to now review our business and provide some additional insights, which I believe will be helpful for investors in measuring our progress. In our healthcare segment, we are pleased to report the following improvements in operations during the first quarter. Although revenue continues to be down on a year-over-year basis, as expected, our focus on attracting and supporting the needs of contracted 340B entities, long-term care providers, and other healthcare facility operators is delivering bottom-line improvements. Furthermore, momentum in this segment is building, having secured new 340B pharmacy service agreements with five new entities, a single quarter record. These entities are now on boarding, a process which usually takes about 90 days to complete before they can start directing prescriptions for us for fulfillment. As such, we believe these new customers will start contributing to our revenue during the third quarter. The contributions for our medication fulfillment contracts continue to surpass expectations as we filled an average of 7,500 prescriptions per month to the contract facilities in Florida. The service fees we recognize in these fulfillments are driving significant bottom-line profit improvement each month. In terms of retail, although we remain focused on expanding our contracted services, over the past few months we have seen some improvement in this segment of our business. As we are now demonstrating, a well-managed retail pharmacy operation combined with strong margin discipline, operational efficiency, and strategic customer relationships can continue to generate attractive margins and meaningful profitability. Baruteh will comment a bit more on this in just a minute. And finally, as I mentioned earlier, we are now actively expanding the scale and scope of our business, currently through our newly created nationwide partnership. We are now moving quickly to leverage our relationships with current and potential customers and preparing for the launch of a new online e-commerce healthcare website. which will feature an array of popular prescription medications, such as GLP-1s and over-the-counter products, including our Florida Sunshine brand premium vitamins and supplements. The new site is expected to go live before the end of the second quarter. Additionally, I can say we're working on other developments here, which we believe will quickly add more scale to our farm co-operations in the state of Florida, which we hope to announce very soon. In our e-commerce segment, Here are the most recent highlights. We continue to see strong global demand for satellite connectivity products during Q1, generating sales from customers in more than 130 countries. In addition, several European government and military orders received during the quarter have helped to build a strong business pipeline for the coming years, supported by the award of multiple multi-year contracts. These orders, together with the recent growth in demand for satellite enabled IoT products, offered by our partners such as Iridium and GlobalStar, have driven IoT sales and recurring revenue to record highs. At this point, I would like to now turn the call over to Bruti for her updates.

Thank you, David. As David mentioned, during the first quarter, we continued executing on the operational restructuring and strategic repositioning of our healthcare business. with a strong focus on improving margin quality, operational efficiency, and long-term scalability. While overall retail prescription volume during the quarter declined compared to the prior year period, we significantly improved the profitability and quality of our pharmacy operations. Gross margin within the pharmacy business improved to an impressive 39% compared to approximately 20% in the prior year period. This improvement was driven by optimization of payer and product mix, stronger gross profit per retail prescription, and increasing contributions from higher margin 340B relationships and contracted medication fulfillment services. Additionally, beginning January 1, 2026, the federally implemented Medicare maximum fair price program impacted reimbursement economics on certain Medicare prescriptions. While this government program was not company specific, the updated reimbursement framework favorably affected margins on certain therapies that historically generated lower profitability under prior pricing structures, contributing to overall improvement in pharmacy gross profit during the quarter. Importantly, these results demonstrate that well-managed pharmacy operations, combined with strong margin discipline, operational efficiency, and strategic customer relationships, can continue to generate attractive margins and meaningful profitability. We believe this operating model supports our long-term expansion strategy, including selective acquisitions in strategic markets where we can expand our geographic footprint, strengthen local relationships, and further support covered entities and healthcare providers. We are also continuing to invest in future growth initiatives across both our 340B and long-term care verticals, including expansion of our sales and account management teams to support additional business development opportunities throughout Florida and other strategic markets. Another important strategic development during the quarter was entering in nationwide fulfillment partnership designed to support our expansion beyond Florida. While the operational rollout and supporting infrastructure are still In development, we believe this relationship creates an important foundation for future national growth. Over time, we expect the platform to support broader prescription access, cash pay opportunities, e-commerce initiatives, and future offerings in high-demand therapeutic categories, including GLP-1 therapies. Overall, we believe the operational improvements implemented over the last several quarters have created a substantially more efficient and scalable healthcare platform, positioning us for sustained margins and growth as additional customers and partnerships come online through 2026. That concludes my remarks. Back to you, David.