Pershing Square Inc.

Good day and welcome to the Pershing Square 2026 Second Quarter Earnings Call. Today's call is being recorded. All participants are in a listen-only mode. Following today's presentation, we will be taking questions from our phone audience. If you would like to ask a question, you may press star 1 on your telephone keypad to join the queue. It is now my pleasure to turn the conference over to Jill Chapman, Head of Corporate Investor Relations for Pershing Square.

Thank you, Taryn. Good morning, everyone, and welcome to Pershing's second quarter 2026 earnings call. Joining me today are CEO and Chairman Bill Ackman and CIO Ryan Israel. Yesterday evening, we issued our earnings presentation and letter to shareholders, which are available on our website at pershingsquareinc.com under the investor section. We expect to file our 10-Q after market close today. Before we begin, I would like to draw your attention to the legal disclaimers at the end of our earnings presentation. Today's call may include forward-looking statements which involve risks and uncertainties and are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors described under forward-looking statements in our earnings presentation and IPO prospectus filed on April 30th as updated by our most recently filed Form 10-Q. We do not undertake any obligation to update forward-looking statements. We may also reference non-GAAP financial measures in response to questions. Reconciliations are included in our earnings presentation, available on our website. Finally, please note that nothing on this call constitutes a prospectus, an offer to sell, or a solicitation of an offer to purchase our common stock or any interest or security in any Pershing Square fund or securities of any other person. Furthermore, nothing on this call constitutes investment advice or an invitation or inducement to deal in securities. And with that, I would like to turn the call over to Bill Ackman.

Thank you, Jill. Welcome to our first earnings call for Pershing Square Inc. One of the, you know, we spent the last 22 years listening to other people's conference calls, and we learned from that, which is why we've taken the approach of the night before releasing earnings, releasing a detailed letter, kind of covering what we think are kind of the key issues and considerations for the quarter, leaving, you know, the full hour for questions from analysts, shareholders, and, you know, other investors. We're going to follow this call with a space on X. If you go to X, you can find the link. We're also re-posting that effectively, replaying it. You'll be able to listen to it afterwards. Expect that discussion to be more focused on the kind of the underlying investments in the Pershing Square portfolio, though we're happy to take some of those questions now. But the emphasis on are underlying holdings, one of the points we tried to make in the letter. What's interesting about this company is that if we never raise another investment vehicle, just sit with the three permanent capital vehicles we have today, this business will grow at a very high rate, is our expectation, because the underlying companies in which we've invested in, we expect will compound at a very high rate over time. In fact, if we do nothing, we don't make another investment, we don't sell another security, we just sit back Allow the compounding of a dozen or more of some of the highest quality businesses we know to occur. Those earnings will compound. We believe those stocks will re-rate to kind of a higher valuation. We think they're cheap as of this particular moment. That will cause a rise in our asset value, the funds that we manage. That will increase the fees and the performance fees that we receive from those vehicles. And the earnings stream will flow into the company. We can just sort of sit back. And that's what makes this a really interesting business. Of course, we want to optimize those portfolios over time. So we will make some adjustments. We'll sell something that's kind of reached our expectation of value. We'll buy something that's become very attractively valued. We'll actually do some financial leverage in the way we manage those vehicles by issuing investment-grade debt, give us kind of long-term returns. But on a quarterly basis, What you'll see is a lot of the inherent volatility in stock prices. One of the things we talked about in the letter, that while the earnings trajectory of our companies is pretty continuous over a long period of time, the multiple that the market assigns to them, particularly in, I would say, an increasingly short-term market, is very volatile. So expect volatility in the underlying holdings But if you look at this business on a multi-year basis, think of it as a royalty look-through basis into the underlying growth and profitability of a business like Amazon or Meta, Microsoft or Alcon, Netflix, or some of the others.