Upexi, Inc.

Good day. Welcome to UPEXI Incorporated Fiscal Second Quarter 2026 Financial Results Conference Call. Please note this event is being recorded. I would now like to turn the conference over to Walter Pinto, Managing Director at KCSA Strategic Communications. Please go ahead.

Thank you, Operator. Good evening and welcome everyone to the UPEXI Fiscal Second Quarter 2026 Financial Results Conference Call. I'm joined today by Alan Marshall, Chief Executive Officer, Andrew Nordstrom, Chief Financial Officer, and Brian Ruddick, Chief Strategy Officer. Before we begin, I'm going to remind everyone the statements made during today's conference call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of risks, uncertainties, and other factors. For a detailed discussion of some of the ongoing risks and uncertainties in the company's business, I refer you to the press release issued this evening and filed with the SEC on Form 8K, as well as the company's reports filed periodically with the SEC. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless otherwise required by law. In addition, during the course of the call, we may refer to non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States. and they may be different from non-GAAP financial measures used by other companies. The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in our earnings release issued this evening, unless otherwise noted. I'd now like to turn the call over to UPEXI CEO, Alan Marshall.

Thank you, Walter, and welcome to our second quarter 2026 earnings conference call. I'm happy to review our results and discuss why, despite the difficult market backdrop, I remain extremely optimistic for the future and why we remain well positioned to win. The market presented two key challenges for us last quarter, with both declining asset prices and Treasury Company multiple compression. This was reflected in our quarterly results as well as in our stock price. I'll discuss each in succession. On the former, the price of Solana fell 40% during the quarter, and it has fallen a further 31% since the quarter end. While there have been many reasons cited, including rising geopolitical risks, precious metals ceiling to show, and many more, the fact of the matter is the biggest determinant of any treasury company's success. has and always will be the performance of its underlying token. Thus, we are not immune, and Solana's performance had a big impact on the company. That said, I remain encouraged for three key reasons. The first is given their nascency, such volatility is normal with digital assets, and Solana often exhibits large movements in both directions, allowing a significant uptrend over time. Second, as Brian will discuss in more detail, The underlying fundamentals for Solana continue to improve as global finance moves on chain. Here, I'm particularly optimistic because over time, price follows fundamentals. And improving fundamentals against a falling price is a recipe for greater potential upside. Lastly, as a treasury company, we have multiple mechanisms not available to native tokens or ETFs that can create value for shareholders, like a creative issuance and discounted lock token purchases. We have in the past and aim to in the future increase our Solana per share to help offset any decline in token price or to add to any increase in price in an up market. So overall, between the volatility being expected, a positive view for potential Solana price appreciation, and our ability to increase Solana per share, we remain positive about the opportunity and continue to believe 2026 will be a strong year for Solana and UPEXI. The second key challenge during the quarter was general multiple compression in the treasury space. We believe this was due to the law of supply and demand. With over 200 treasury companies, it's not hard to see why many are trading at discounts than net asset value. Despite this, I remain optimistic for so many reasons. First, I believe the subsector will work through some of its oversupply, either through M&A or from treasury companies selling their digital assets to close the discounts. Secondly, I believe there are fundamental reasons why UPEXI can and should trade at premium valuation in constructive market environments. As discussed in the past, these have to do with our multiple value accrual mechanisms, which have value. Third, as we have publicly stated, we are working to increase the yield that we generate on the treasury in a risk-prudent and recurring fashion. Should we be successful, we believe this would increase our multiple, which in turn would accelerate the model and differentiate UPEXI from others. Lastly, I believe we're likely to see multiple expansion in a bull market. This has been the case historically with public companies, and there are large catalysts like the potential passage of U.S. digital asset legislation that could quickly bring this to fruition. In closing, while we have had a turbulent start to 2026, we remain positive about the future, and the company has developed a strong strategic plan to, one, increase yield, two, hedge positions use a maturing option market, And lastly, capitalize on top opportunities the volatility creates. All of these things should lead to significant growth in yield, cash flow, and stability for 2026 and beyond. With that, I'd like to turn the call over to our Chief Strategy Officer, Brian Ruddock.