PSQ Holdings Inc

Thank you for standing by and welcome to the Public Square's fourth quarter and full year 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. I now like to turn the call over to William Kent, head of corporate affairs. You may begin.

Thanks, Rob, and good morning, everyone, and welcome to PSU Holdings' fourth quarter and full year 2025 earnings conference call. Joining me today are Dusty Wunderlich, Chairman and Chief Executive Officer, and James Grin, Chief Financial Officer. Before we get started, we want to emphasize that the information discussed on this call, including our outlook, is based on information as of today, contains forward-looking statements that may involve risks, uncertainties, and assumptions. We undertake no duty or obligation to update such statements as a result of new information of future events. Please refer to today's earnings press release and our SEC filing, including our 2025 10-K file this morning, for factors that may cause actual results to differ materially from our forward-looking statements. We'd also like to point out that we may present non-GAAP measures in addition to, not as a substitute for, financial measures calculated in accordance with GAAP. I'll now hand the call over to Dusty.

Thank you, Will, and welcome, everyone. Today's call marks the beginning of a new leadership phase for our company. We're simplifying the company, focusing entirely on financial infrastructure and aligning the business around disciplined execution. In the past, the market saw ambitious ideas that lacked consistent follow through. Our goal now is to restore investor confidence through measurable execution. We're moving forward with four core themes, strategic focus, operational accountability, cash efficiency, and a drive toward higher revenue per employee. Despite headwinds in certain sectors, our FinTech strategy is working. We delivered over 80% year-over-year growth, bolstered by a strong fourth quarter performance with over 100% quarter-over-quarter growth. This growth is driven by our focus on FinTech infrastructure, and credit products, particularly within underserved but economically meaningful industries. Notably, alongside this meaningful revenue growth, we reduce SG&A expenses by 9.9 million year over year. A clear example is the firearms industry. While broader market data suggests softness, our business continues to grow. This statement is well supported by the December 2025 NSSF adjusted next checks. which declined approximately 3.4% year over year in December. We believe this is structural market shift, not a contraction. Younger digital first buyers, specifically millennials and Gen Z are moving towards e-commerce infrastructure, which directly benefits our payments and credit businesses. Further to this point, we significantly increased our repeat credit customer rates in Q4, as well as year over year, helping us drive Efficient and cost-effective growth. To support this lean, high-output model, we have taken decisive action. Since September, we have reduced our headcount from 87 employees to approximately 50. We have significantly lowered our operating expenses while continuing to grow revenue year over year. Note, we incurred approximately $250,000 in cash severance expense in Q4. We expect to recognize certain one-time severance costs in the first half of 2026, but the net impact of these reductions will result in lower cash burn in the coming quarters and should bring us much closer to profitability in the near term. We believe that a key metric of success that can be easily measured is revenue produced per employee, and we expect this metric to grow significantly throughout 2026 as we continue simplifying the organization and concentrating our efforts on the core business of credit payments and financial infrastructure. As we complete the divestiture restructuring non-core assets and continue deploying automation and AI tools internally, we believe our organization will be capable of producing materially more revenue with fewer people and significantly lower cost structure. Artificial intelligence is central to this productivity leverage. We've already seen meaningful improvements in underwriting performance within our Credova credit platform through the application of machine learning and AI-driven credit scoring models. We are now expanding the use of AI across multiple parts of the business, including engineering productivity, financial operations, and risk monitoring. These tools enable a leaner team to operate with greater speed and precision, which is essential as we scale the company's FinTech infrastructure. Looking ahead, we expect significant disintermediation across the payments ecosystem. Traditional payment wells were largely built decades ago and were designed for a very different financial environment. They rely on multiple intermediaries, legacy infrastructure, and settlement processes that introduce friction, cost, and latency into transactions. As new financial technologies mature, we are seeing the emergence of more efficient systems that enable faster settlement. lower transaction costs, and more direct relationships between merchants, consumers, and financial institutions. These technologies are fundamentally reshaping how payments infrastructure is built and who participates in the value chain. In our view, the payments industry is entering a period where many of the legacy layers that historically sat between the merchant and the customer will be compressed or eliminated. This creates an opportunity for new platforms that can provide integrated financial services simplified payment flows, and better alignment with the needs of modern merchants. At PSQ Holdings, we believe our approach to this as well for this shift. Rather than simply participating in legacy payment rails, our focus is on building a more integrated financial platform designed specifically for merchants and consumers we serve. Over time, we believe this will allow us to reduce friction, increase merchant economics, and capture more value within the transaction lifecycle. Our overall approach to payments also includes a practical approach to digital assets. We are not approaching Bitcoin or digital assets as a speculative balance sheet investment. Instead, we are evaluating how stablecoins and blockchain-based settlement rails may improve transaction speed, reduce payment costs, and increase reliability for our merchant partners over time. Our goal is to position PSQ as a modern, financial infrastructure provider to industries that have historically been underserved by large financial institutions. Finally, regarding our portfolio, we are evaluating divestitures in the future of this impact platform. We are in active discussions with several interested parties regarding our every life business and will provide updates when appropriate. And finally, we are pleased with the early results of our impact platform. The technology is live in the market, and we look forward to sharing more about how it fits within our broader payments roadmap over time. Our objective now is straightforward. Simplify the company, strengthen the balance sheet, and compound the core FinTech platform. Now I'd like to hand it over to our Chief Financial Officer, James Renz.