Quotemedia Inc

Good day, everyone, and welcome to the Quote Media year-end results conference call. At this time, all participants are in listen-only mode. Later, we'll conduct a question-and-answer session. You may register to ask a question at any time by pressing star 1 on your phone. Please note, today's call is being recorded, and I'll be standing by should you need assistance. Now, I'll turn the call over to your host, Dave Swarn. Please go ahead, Dave.

Thank you, and welcome, everyone. We appreciate you joining us today. Before we begin, I have a brief safe harbor statement. Except for historical information contained herein, the statements made in this call include forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected. And now we're happy to go through our 2025 year end results. Sorry, 2025 was a very strong year for Colbedia. At the beginning of the year, we were focused on rebuilding from the client losses we experienced in 2024. Today, I'm pleased to say that we have not only recovered, but we have moved beyond that period and established a stronger, more diversified foundation for the business. For the full year, we achieved 8% revenue growth over 2024. This is a meaningful result, particularly given the headwinds we were working through at the start of the year. As the year progressed, we saw growth accelerate quarter by quarter, supported by new client wins and expansion within our existing client base. This acceleration is reflected in our fourth quarter results where we delivered a 14% increase compared to Q4 of 2024. Importantly, this growth is high quality and increasingly predictable. We are signing larger contracts, expanding relationships with existing clients, and continuing to build a stronger base of recurring revenue. Our sales pipeline remains very strong, arguably the strongest we've seen in several years, and we are entering 2026 with a high level of confidence. Based on our current visibility, we expect to deliver double-digit growth through each quarter of 2026. From a profitability standpoint, we continue to see steady improvement. Our gross margin finished the year at 47%, and we expect that to improve further through 2026. The same is true for EBITDA and overall profitability, which we expect to strengthen in the coming quarters as the impact of previously capitalized development costs continues to diminish. We're now seeing the benefits of the investments we made over the past several years. And as revenue continues to grow, we expect that to translate into improved profitability. This reflects in the operating leverage in our business. As revenue grows, our cost structure does not increase at the same rate, allowing us to expand margins over time. In addition, our deferred revenue finished the year at $1.9 million, which reflects strong contracted business that will be recognized in future periods and provides greater visibility into our revenue going forward. From a competitive standpoint, we're very encouraged by what we're seeing in the market. We are consistently winning contracts against much larger, well-established competitors. Importantly, these wins are not based on price. They are based on the strength of our product, the depth and quality of our proprietary data, and the level of service we provide to our clients. We are winning because we are better, not because we are cheaper. That is the clear validation of our strategy, and our long-term investments in both technology and data. We are also continuing to expand our product offerings. Our AI initiatives, which we began developing internally several years ago, are now becoming increasingly integrated across our platforms. We believe this will enhance the value we deliver to clients and create additional opportunities for growth over time. We see AI as a meaningful driver of future product value and client engagement. We're entering 2026 with more visibility than we've had in years. Our pipeline today gives us real confidence, not just optimism about the year ahead. Our products are resonating in the market and we are increasingly seeing companies reach out to us to upgrade their services from incumbent vendors. With the momentum we've built this year, we believe we are at the beginning of a multi-year growth phase. Our business is becoming more predictable, more scalable, and more resilient. And we are entering 2026 from a position of strength. We are very excited about the opportunities ahead of us. With that, I'll now pass over to Keith Randall to walk us through the financial details for the year. And after that, we'll be happy to take your questions. Go ahead, Keith.

Thank you, Dave, and welcome, everyone. I'll begin with the income statement. Unless otherwise noted, all comparisons are on a year-over-year basis. Total revenue increased 8% compared to fiscal 2024, with Q4 revenue up 14% versus Q4 2024. Corporate coaching revenue grew 14%. while interactive content revenue increased 5%. Growth was driven primarily by higher average revenue per customer, reflecting our continued success in attracting larger clients and expanding relationships through cross-selling. Individual cool stream revenue is relatively unchanged from 2024. Cost of revenue includes stock exchange fees, data costs, and amortization of capitalized development. Cost of revenue increased by 9%, driven by higher variable exchange fees associated with revenue growth, as well as increased in fixed stock exchange fees. Gross margin remains stable at 47%. Looking ahead, we expect gross margin to improve as revenue grows and amortization expense declines with lower capitalization levels. Total operating expenses increased 14% for the year, primarily reflecting lower capitalization of development costs and therefore higher immediate expense recognition. Sales and marketing expenses were relatively flat, increasing 1%. G&A expenses decreased 12% driven by lower bad debt expense and reduced office costs. We downsized our Vancouver office after our lease ended in July 2025, as most of our development team now works remotely. Software development expenses increased 58%, reflecting a shift in the capitalization of development costs, with 7% of development costs capitalized this year, compared to 25% in 2024. This increase was partially offset by lower payroll costs reflecting a reduction in development staff in December 2024. Net loss for the year was 2.3 million compared to 1.3 million in 2024. Adjusted EBITDA was 1 million down from 1.8 million. Lower capitalization resulted in more development costs being expensed immediately while amortization remains elevated due to prior period investments. While our capitalized development cost accounting impacted earnings and EBITDA, it did not impact cash flow. These dynamics are temporary and will normalize over time. As a result, we expect improvements in gross margin, EBITDA, and overall profitability as revenue continues to grow and amortization expense declines. Please refer to the reconciliation in our press release for details on adjusted EBITDA. Turning to the balance sheet and cash flow, we ended the year with $320,000 in cash compared to $585,000 at the end of 2024. Deferred revenue totaled $1.9 million. The associated future costs related to deferred revenue are minimal, as this revenue largely relates to setup and development work already completed and will be recognized over the remaining contract terms. Net cash flow from operations was 1.1 million, while investing activities used 1.4 million, primarily for infrastructure and product development. Q4 revenue growth was 14%, and we expect similar growth in 2026. We also expect improvement in profitability as revenue grows and the impact of prior period amortization diminishes. Thank you, and I'll pass it back to Dave.