Vext Science Inc

Thank you for standing by. This is the conference operator. Welcome to VEX Sciences third quarter 2025 financial results conference call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Priyam Chakraborty. Please go ahead.

Thanks, operator. Good morning, everyone, and thank you for joining us today. VEXed's third quarter 2025 financial results were released earlier this morning. The press release, financial statements, and MD&A are available on Feedout Plus as well as on the VEXed website at vexedscience.com. We would like to remind listeners that portions of today's discussion include forward-looking statements and that forward-looking statements are included in today's findings. There can be no assurance that these forward-looking statements will prove to be accurate or that management's expectations or estimates future development circumstances or results contained therein will materialize. Risks and uncertainties that could affect future development circumstances or results are detailed in the MD&A and VEX other public filings that are made available on FEDER Plus. And we encourage listeners to read those risk factors in conjunction with today's call. As a result of these risks and uncertainties, the developments, circumstances, or results predicted in forward-looking statements may differ materially from actual developments, circumstances, or results. This call also includes non-IFRS financial information, and such non-IFRS financial measures are subject to the disclosure and reconciliation included in our press release disseminated earlier today, as well as the MD&A. Forward-looking statements made during this conference call are made as of the date of this call. VEX disclaims any intention or obligation to update or revise such information except as required by applicable law. VEX financial statements are presented in U.S. dollars, and the results discussed during this call are in U.S. dollars. I will now pass the call over to Eric Offenberger, Chief Executive Officer of VEX.

Thanks, Priyam. Good morning, everybody, and thank you for joining our third quarter 2025 financial results conference call. I am joined today by Trevor Smith, VEX CFO. Q3 was a solid quarter for BEXT. Our results reflect a mix of continued progress in Ohio and consistent execution in Arizona. Revenue was $12.7 million, up 41% year-over-year, driven by the full quarter contribution from our Athens and Jeffersonville dispensaries in Ohio and continued resilience in Arizona. We once again generated positive operating cash flow, something we've done for the fourth consecutive quarter now, and continue to strengthen the foundation of our business. Across our two operating states, we're seeing very different market dynamics, and our model is proving resilient in both. Ohio continues to gain momentum as adult use sales expand and our retail footprint grows. We're positioning the business to capture more of the demand through continued retail expansion and improved cultivation output. Arizona, on the other hand, remains a mature and competitive market that's working through excess supply and lower pricing. Our team continues to do a great job managing through it, consistently outperforming state averages, generating positive adjusted EBITDA, and protecting margins through a focus on efficiency and customer loyalty. Turning first to Ohio. Ohio continues to stand out as a growth engine for BEX. Revenue in the state was steady this quarter. with retail growth from the ramp up of our third and fourth dispensaries in Athens and Jeffersonville, offsetting intentionally lower third-party wholesale activity, consistent with our shift toward a more retail-focused model. Our four operating dispensaries continue to perform well, supported by steady customer traffic, strong customer retention, and ramping up store-level execution. The addition of drive-thrus to select dispensaries has also been a clear success, driving convenience, higher visit frequency, and reinforcing the strength of our retail-centered vertical platform approach. We're adding drive-thrus across our retail platform wherever permitting allows, and results have been consistently positive. During the quarter, we increased flower inventory in Ohio in anticipation of our next phase of retail growth. While the tagging of our well-positioned Fairfield store opening has shifted into early 2026 due to permitting-related delays, we're excited to bring our three remaining locations online through 2026 and expect them to meaningfully contribute to our results. Trevor will speak to the financial impact in more detail, but at a high level, we expect to monetize our excess inventory, through the wholesale channel throughout the remainder of the year, enhancing cash generation. With Portsmouth consolidated as of October 1st and cultivation yields improving meaningfully, we expect to see strong revenue growth in quarter four as throughput increases and more of our retail network contributes for a full quarter. Beyond that, we're focused on completing construction of our three remaining locations to reach the state license cap of eight dispensaries, during 2026. While initial opening timelines targeted early 2026, store launches will ultimately align with the pace of permitting and regulatory approvals. As these milestones are achieved, we expect our larger footprint to meaningfully expand our reach positioning VEX for continued growth in one of the country's most promising adult use markets. Turning to Arizona. Our operations continue to perform well with our sales exceeding state averages on a per-store basis and demonstrating the strength of our retail execution and local customer base. The broader market, however, remains soft with statewide sales down about 12% sequentially and 6% year-over-year due to pricing pressure and typical summer seasonality. Our focus remains on efficiency and margin protection in what continues to be a competitive environment selling our own brands through our retail network, maintaining tight operational controls and strong yields from our Eloy cultivation facility, which continues to exceed market averages, have helped us maintain positive adjusted EBITDA despite multi-year revenue declines across the state. We believe our above average execution in Arizona is a clear indicator of our ability to not only sustain performance, but win in markets as they mature and grow increasingly competitive. Against this backdrop, we're entering year end with momentum and a stronger foundation to build on. In Ohio, we're continuing to see strong high margin growth as the adult use market expands, while in Arizona, our team is proving we can stay profitable and efficient in a competitive environment. That balance between growth and stability supported by our capital light model and focus on vertically integrated, disciplined operations has enabled us to deliver solid cash flow margins through the year. With much of the heavy lifting on acquisitions and build outs now behind us, our focus is on converting more of that growth into free cash flow, strengthening our balance sheet, and delivering steady long-term value for our shareholders. Before handing the call over to Trevor, I want to thank our team for their continued hard work and focus. Even in a tougher quarter with increased seasonality in Arizona, we delivered positive cash flow, kept expenses in line, and stayed on track with our growth plan in Ohio. With that, over to Trevor for a review of the financials. Trevor?