Otovo ASA

Good morning, and thank you for joining us for Etobo's first quarter 2026 earnings call. I am John Berger, Chief Executive Officer, and joining me today is Jennifer Sanas-Goy, our Chief Financial Officer. Please submit your questions in the event page, and we will address them at the end of our prepared remarks. Moving on to the first slide. I will begin with our progress against the strategy we announced earlier this year. Jennifer will then take you through the financial results, before I return to cover our business highlights and outlook for the remainder of the year, and then open for your questions. Q1, 2026 highlights. In ACOBO's 2025 annual report, we made three commitments to our stakeholders. First, scale the business through accretive acquisitions at low multiples, organic growth, and selective OEM and asset owner partnership activity across Etobo's expanding geographic footprint. Second, tighten capital allocation, improve cash management, sharpen our execution, and make better use of technology, including AI, across Etobo's platform, and lower overhead by rationalizing less profitable operations. Third, invest in our endurance system to create profitable operating leverage expand EBIT margins, enable synergies in our M&A. We accomplished a lot in the first quarter. We acquired three customer portfolios in Europe, solar service professionals, and energy aid in California. More recently, Sun System Technology in the Northeast United States, and established a relationship with Green Panel. We ramped up field service activity and grew membership to 20,000. We reduced operating expenses by $2 million year over year and improved adjusted EBITDA by half a million dollars. This was despite lower revenue due to our strategic pivot away from the new build segment. The endurance rollout is underway, and we've identified $4 million in cost reductions, including energy aid synergies. The full effect was expected in the second half of 2026. So where are we going from here? We will do more accretive M&A, executing year one accretive acquisitions at low multiples. We will continue to rationalize costs across both the existing platform and the newly acquired companies. We will complete the endurance rollout, and we will improve margin and sales for M&A, organic growth, and partnerships, scaling a platform that is designed for accretive growth. Atobo is an AI-powered home and commercial energy services consolidator. We will provide monitoring, repair, and memberships for solar, batteries, and EV chargers. Across Europe and the United States, there are roughly 37 million behind-the-meter power asset installations, and we estimate over a third of these are orphaned following the recent bankruptcy wave among installers, meaning the owner has no service provider to call when their systems don't perform as expected or fail outright. At the center of the model is Endurance, our proprietary AI platform and our margin engine. It automates intake, diagnosis, dispatch, and scheduling, increasing customer value while lowering our cost to deliver. Etobo is a market consolidator with a proven track record that includes seven acquisitions since the 2025 merger in both Europe and the United States. capturing significant synergies and acquiring customers at a fraction of the normal customer acquisition cost. We expect 2026 revenue of approximately $80 to $90 million and adjusted EBITDA of approximately $2.5 to $7.5 million. We have roughly 30,000 customers, including Energy Aid, around 20,000 memberships, and an accumulated legacy customer and monitoring base of 1.4 million. There are more than 37 million asset-owning homes and businesses across the United States and Europe, more than 13 million of which are orphaned customers with no service provider. We estimate the annual service addressable market and more than $55 billion across the two continents. Three dynamics define this market. First, the service gap itself. We estimate that over half of the residential solar installers that were operating in 2020 have exited the industry, leaving millions of homeowners with no one to call when their systems fail. Etobah bridges that gap by giving these systems a home for best-in-class service. Second, a fragmented market primed for consolidation. In the United States alone, there are an estimated 300 service-only companies and over 10,000 installers with some sort of service operation. Most are running expensive software stacks and serving only their local market. and depressed valuations create an ideal acquisition environment for us. Third, proving willingness to pay. Demand for Otobo memberships has grown tremendously in both the United States and Europe, especially in regions with aging systems. Our business model generates up to five revenue streams per customer, with a target average revenue per customer of roughly 1,400 U.S. dollars per year for residential at a gross margin of 45%. For a residential customer, those streams are in the Etobocare membership, repairs and field service, equipment upgrades, retail power, and virtual power plant or grid services. Commercial customers generate meaningfully higher revenue at about $4,900 per year per customer. It is important to be clear that Etobocare is not a warranty or an insurance product. It is a membership that provides monitoring, priority response, and repair discounts. We bundle these services because memberships establish long-term relationships, upgrades expand the asset base per account, and retail and grid services then monetize that portfolio at attractive margins. Endurance is our proprietary technology stack, which spans the entire business and enables the extensive use of agents. It covers four areas, marketing, sales, operations, and supply chain. Industry EBIT margins sit around 10 to 20% today. At scale, we are targeting a much stronger EBIT margin of 20 to 30% with endurance.

Owning the software stack and enabling efficient operations are the primary drivers of that expansion. This is not hypothetical.

Endurance is already running revenue critical workflows across all four areas today. In marketing, lead intake flows directly into our system and is handed off to a unified inbox where AI handled customer threads are already in production. In sales, AI phone agents book inspections 24-7, allowing customer response on weekends and after hours. we have a zero touch sales path where customer inbounds go straight from the AI phone agent to the technician on site with no human in the middle. In operations, we have a unified inbox combining email, SMS, and voice on the same customer record, geofence job sites, and technician mobile auto tracking. And in supply chain, we track inventory across warehouses and trucks run three-way match purchase orders with ramp integration for one-click bill approval, and handle return authorizations end-to-end with technician-uploaded purchase orders from the field, eliminating the return trip.