Otovo ASA

Thank you and good morning, everyone.

I'll start with the headline numbers for the quarter and walk you through Atobo 2.0, what this company is now, and why the model works. Jennifer will take you through the financials. I'll come back for the business highlights, and we'll close with outlook and guidance before opening for questions. Q2, and specifically the month of June, marked a point of transition. Total revenue was $10 million, up 8% quarter-on-quarter at constant currency, and that's despite deliberately winding down the legacy new-build business. The engine that increased that number is field services revenue, which grew approximately 200% sequentially at constant currency on the ramp-up of the service businesses and the consolidation of energy aid. Adjusted group gross profit moved up 28% quarter-on-quarter on an improved revenue mix consisting of an increase in field services revenue. Adjusted OPEX was down 9% quarter-on-quarter at constant currency even while absorbing energy aid thanks to cost reductions. Adjusted EBITDA improved $1.1 million sequentially at constant currency and $1.5 million year-on-year. But the story for the second quarter was our execution, especially in the month of June, as during the month we integrated energy aid quickly, saw additional significant endurance-driven cost cuts, and U.S. sales moved materially higher. U.S. sales towards the end of July were materially higher and continued to grow at a torrid pace. Equally important, the steps we took in the second quarter are poised to drive a strong second half for Etobo when the financial benefits take hold, leading to the increasing guidance I'll discuss later in the call. It is possible that the combination of rapidly increasing sales in the United States and cost cuts due to endurance being deployed in the global areas of sales, customer support, procurement, scheduling and dispatch, and marketing have moved us into adjusted EBITDA positive over the last few days. With new acquisitions soon being added to the mix, we expect to see similar success in Europe in the coming weeks, thereby cementing our profitability and unlocking operating leverage resulting in significant cash flow potential. In addition, we are hiring additional technicians in the U.S. and Europe to handle the increasing growth without having to add support staff thanks to endurance. These strong tailwinds have continued into Q3 and are expected to grow even stronger in Q4. On the business side, approximately 55,000 customers as of 31 July, up over 80% from Q1 and up over 200% from the end of 2025, and the endurance rollout remains on track for company-wide completion in Q3. We identified more than $1 million of cost avoidance from endurance this quarter, taking the total well above U.S. dollar $5 million. and we recently closed the SST acquisition, announced the green panel acquisition, and have three additional acquisitions, one in the US and two in Europe, expected to be announced in the coming days and weeks. Let me explain what this company is now, because it is a different business than the one many of you first knew. Etobo is an AI native behind the meter energy services company, servicing homes and businesses in Europe and the United States. We combine equipment monitoring, rapid repairs, dependable power supply, and grid participation into one service. Endurance, Etobo's AI platform, monitors installed equipment, optimizes service from problem detection to resolution, and coordinates repairs around the clock. For 2026, we're guiding to $105 to $115 million of revenue, an increase of $25 million from our last guide last quarter. and $15 to $20 million of adjusted EBITDA, an increase of $12.5 million, both on a Q4 annualized run rate basis. Three things make this work. First, a large orphan install base, over 37 million behind-the-meter power asset installations across Europe and the United States, of which more than 13 million have no service partner to call because roughly half of installers have gone bankrupt or exited. Second, Endurance, our margin engine, which automates intake, diagnosis, dispatch, and scheduling, and which we expect to lift EBIT margins from a 10% to 20% industry average into the 20% to 30% range. Third, we are a proven consolidator. Seven deals have been closed and integrated since the December 2025 merger with four additional transactions, including the announced screen panel deal expected to close this year. Step back, and there are three secular waves converging here, and they reinforce each other. Power, a long-term global bull market and behind-the-meter energy driven by AI, electrification, data centers, and reshoring. Service, U.S. home services, HVAC, pool, pest, plumbing are consolidating for scale. In our category, the installer class has left an organ gap of over 13 million customers. And AI, applied AI is the next phase of the megatrend. and it drives real productivity gains in service businesses. A tovo converts that into margin through endurance. You rarely get the sit at the intersection of three tailwinds at once. We do. Besides it, 37 million-plus installations across the U.S. and Europe, more than 13 million orphan customers, and annual service TAM north of $55 billion. And the supply side is fragmented and distressed. In the U.S. alone, there are an estimated 300 service-only companies and over 10,000 installers with some service operations, most running expensive SaaS software stacks and serving one local market. Roughly half of the residential solar installers operating in 2020 have gone bankrupt or exited. Depressed valuations plus stranded customers are close to an ideal M&A environment, and we are moving through it deliberately. The unit economics are straightforward. five revenue streams per customer, targeting roughly $1,400 of annual average revenue per user and residential at a 45% lending gross margin. The Etobicoke Care membership, monitoring plus fast response access, is about $250 of that. Repairs and field service, billed per job with priority response from members, is the largest piece at roughly $650. Equipment upgrades, batteries, EV chargers, load management, is around $400. Then retail power and VPP slash grid services is on top. On the commercial side, average revenue per user is closer to $4,900. One clarification we always make, a total care is not a warranty and not insurance. It's monitoring, priority response, and repair discounts. The bundle exists because service earns loyalty, and loyalty is what makes upgrades, retail, and VPP land at high margins. Endurance is one proprietary tech stack with AI agents running across every part of the business, marketing, sales, operations, and supply chain. For security control, we utilize our own servers with continuous internal audits and full lockdown capability. What that means in practice is one record per customer, work orders, appointments, membership, territory, and billing on a single screen on one proprietary data layer. And the AI does the work. Every call, email, and text on one thread, with endurance confirming the inspection appointment with the customer itself unprompted. Our vision is that the technician becomes the only human touchpoint for our customers. The cost impact identified today is over $5 million annualized and growing. These are distinct and non-overlapping.

We expect the number to keep rising with both organic and inorganic growth.