PSQ Holdings Inc

Hello and thank you for standing by. My name is Bella and I will be your conference operator today. At this time, I would like to welcome everyone to PSQ Holdings First Quarter 2026 Financial Results 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. We do request for today's session that you please limit to one question and one follow up. If you would like to ask a question during this time, Simply press star, then the number 1 on your telephone keypad. To withdraw your question, press star 1 again. I would now like to turn the conference over to William Kemp. You may begin.

Good morning, and welcome to the PSU Holdings First Quarter 2026 Earnings Call. Joining me today are Dusty Wunderlich, our Chairman and Chief Executive Officer, Mike Pena, our Chief Financial Officer, and Krista Wenzel, our Chief Accounting Officer. Before we begin, please note that the information we discussed today, including our outlook, is current as of today and includes forward-looking statements that involves risks and uncertainties. We are not required to update these statements if new information arises. For details on factors that could cause actual results to differ, please see today's earnings press release and our FCC filings, including our 2025 Form 10-K. We may also present non-GAAP measures alongside financial measures calculated according to GAAP. I'll now hand the call over to Dusty.

Thank you, Will, and good morning, everyone. On our year-end call in March, I said you should expect deliberate communication when there is meaningful progress to report. Q1 2026 is meaningful progress. At the end of 2025, we committed to focusing our strategy, being accountable in operations, improving cash efficiency, and raising revenue per employee. This quarter's results show we are delivering on those promises. Revenue grew 167% year over year during the first quarter. Operating expenses declined 18%. Operating loss improved 34%. Payments delivered its largest gross merchandise volume or GMV quarter ever. Credit GMV grew 32%. And revenue per employee, our North Star metric improved 287%. Each figure represents actual results, not projections. Krista will walk through the P&L story, and Mike will speak to platform, scale, cash, and our capital position. At the Roth Conference in March, a replay is available on our IR site. I said AI adoption was expected to meaningfully change revenue per employee. and that we aim to improve this metric every quarter. Q1 is our first data point supporting that thesis. AI continues to be a force multiplier, and we're seeing in real time how it is actively pushing us to redesign and upgrade how we work. Since we first deployed machine learning in Cordova's underwriting in 2021, we have expanded its use across engineering, financial operations, and risk monitoring. AI agent infrastructure has improved our situational awareness, operational efficiency, and accelerated our team's decision making. With a smaller team and better tools, we are working more efficiently, and Q1 reflects it. The restructuring we executed over the past two quarters is now fully reflected in our cost structure. We reduced staff by 41% from September 2025 to March 2026. wound down the marketplace segment and reduced contractor and consulting expenses. These actions are expected to deliver approximately $8 million in annualized cash savings, and we view them not as a one-time reset, but as a foundation of a more capital-efficient operating model designed to support sustained revenue growth with disciplined cost management. Payments is our fastest growing revenue driver. Q1 GMB reached 186.2 million, reflecting ongoing merchant onboarding and strong existing relationships. We've signed several new merchant agreements and are negotiating more. It is noteworthy that industries beyond our core advert category are actively seeking to implement payment offerings in response to continued politically motivated debanking and deplatforming pressure. In credit, Cordova grew 32%, even though the broader firearms market remains soft. NSSF adjusted NICS data, which represents the number of firearm background checks initiated through the NICS, show that softness has continued into early 2026. Despite the backdrop, our growth in credit is being driven by execution, improved conversion, higher approval rates, customer re-engagement, and expansion into adjacent categories. Credit quality remains strong. Our giving product, which we previously referred to as impact, is a specialized component of our payment stack serving nonprofits and political campaigns. We continue to see inbound interest from organizations drawn to both the quality of our platform and the deep platforming pressure they face elsewhere. Our focus is on building a quality product and working closely with our early clients to refine the platform for scale. This is a deliberate measured ramp, and we will share more as the product matures. One more item I want to cover is that you may have noticed the publicsquare.com website is now redirecting to a new credova.com experience. This change is a natural evolution of our brand as we shift fully to a FinTech-focused organization and create a more unified customer experience. We continue to actively pursue the sale of our brand segment. The sale process remains ongoing, and we hope to enter into a definitive agreement in the first half of 2026. Since the beginning of 2026, we have made a number of operational changes in the brand segment, including rightsizing the team, renegotiating our third-party logistics relationship, and making material changes to sales and marketing, all of which have led to significant cost savings, which we are realizing now and we believe are beneficial to the ultimate acquirer of the business. Our priorities are unchanged, grow revenue with discipline, reduce cash burn, and drive towards profitability. Revenue per employee is our leading indicator. As that metric rises, margins improve, cash burn declines, and our operating results progress. We do not need to add many employees to drive real revenue growth. Our infrastructure is in place, our merchant relationships are expanding, and AI is making us more efficient with each passing quarter. We believe Q1 reflects meaningful progress, and our focus is on continuing to build on that momentum each quarter. I'll now turn the financial portion of the call over to Krista Wenzel, our Chief Accounting Officer, and Mike Pena, our Chief Financial Officer. Crystal will walk through how the progress I highlighted is showing up in the financials and how the shift to a focused FinTech model is translating into improved financial performance.