Adcore Inc.

All right. Good morning, everyone. Thank you for joining us. Earlier today, Adco released its Q1 2026 financial results. Today, we'll be walking you through these results and providing you with an update on the ongoing company initiatives. You might see some familiar faces here on the call today. I'm Martijn van de Dent, Chief Partnership Officer for the company and overseeing investor relations. With me today is Omri Brail, the AdCourse CEO and founder, and we also have Amit Konforti, AdCourse CFO, on the call. The agenda for today, before we begin, we go over some forward-looking statements you should be aware of while listening to the call, and then we follow that with some CEO opening remarks and the CFO financial highlights. Finally, we'll conclude with Q&A. And if you have any questions throughout the call, please submit it through the question feature here in Zoom. We'll make sure to answer these at the end of the call. All right. Before we begin, I will give everyone a quick moment to review the statements. Please bear in mind when listening to the call today that the management team may use some forward-looking statements which are inherently uncertain in nature. I'll give everyone a couple seconds to go over. All right, very good. And with that, I would like to pass the floor to Omri for some CEO opening remarks. Omri, the floor is yours.

Thank you very much, Martin, and good morning, everyone. Martin, can you stop sharing, please? Yeah, thank you. So before I'm going to start my own opening remarks, I want to say again, it's our pleasure to discuss today the company financial results for Q1 2026. Actually, both myself and Martel are now in Toronto, Canada, right? So not every day we have a chance to do the earning call directly from where we are listed. So it's an exciting opportunity for us, you know, to discuss this from Toronto, from Canada, Obviously, after this call, we have a full agenda lined up for us. Right, Martin? We're going to meet with our team in Canada. We're going to meet with clients. You know, we're going to showcase them, you know, like some of the exciting stuff that we've been working on. So, again, it's our pleasure to be here today in Toronto to discuss the company Q1 2026 results. Let me start by sharing my screen.

Okay. Very good.

So a very strong start of 2026. I would say revenue up 22% year-on-year, APAC revenue growing 42%. So the same, I would say, momentum that actually we saw in the end of 2025, in Q4 2025, carried well into 2026 as well, and this makes us very positive about what is still ahead of us for the entire 2026 year. And to be honest, even if you're going to talk like US dollar, because there was some influence of exchange rates during this quarter, the results are even more dramatic. Almost 27% increase top line revenue if you're talking USD, and gross profit, for example, 6% up USD compared to almost flat in Canadian dollar, or maybe 1% up in Canadian dollar. Quarterly results, $8.5 million Canadian dollar, very strong quarter for us compared to $7 million in the previous year. 22% increase year-on-year Canadian dollar, 27% increase year-on-year USD, and gross profit again, 3.1% up 1% compared to the same period last year, or 6% actually USD compared to the same period last year. If you look at quality growth KPIs, and again, growth profit 3.1, 1% up, cash-in-cash equivalent 5.1 million. We saw a decline compared to Q4, but I would say it's mainly seasonality decline. A lot of the, I would say, spend and campaigns that were happening Q4 2026, and money was flowing, you know, like during this quarter, actually was declining. paid, you know, during Q1 2026, and that reflects in the numbers when you look at, let's say, and I'm going to cover it in more detail, working capital, then obviously you're not going to see such a sharp decline. So, and that's a good indicator that basically there's nothing dramatic happening, it's just a seasonal cash flow between the quarter. So, just to wrap up, some of the highlights we covered, most of them, I guess, top line revenue, 8.5 million Canadian dollars, 22% year-on-year increase, big numbers, big growth. Growth profits, $3.1 million, 1% year-on-year increase. APAC continues to show very strong momentum. 42% year-on-year growth. That's, I would say, the fastest growing market for us to date. EMEA almost, I would say, flattened. And actually, North America has done 7%, but actually for us it's a positive signal because we see North America is flattening. We did saw some softness in this important market in 2025, and the company now believes that this softness is more or less ended, and actually we expected to see this market going to positive growing trend in 2026 as the year unfolds. I would say Amit will cover, you know, the result in more detail, so I would keep some of the artwork to Amit to cover, but what actually I would like to discuss now is two new technologies or developing new technologies the company is building, and basically we are very excited about, and I want to show both of them in action so you have better understanding what is under the hood, what type of AI innovation technology the company is building. So Proposely, obviously we've been talking about Proposely during also the last earning course, but I think like this is a major change or shift in the product promising. So Proposely started as I would say document platform or sales document platform. And the promise was quote to revenue. So basically we're going to generate a very nice looking quote for you. You can share it with your client. You're going to close more deal for you and basically generate in the end of the day more revenue. But in the end of the day, the platform was, you know, like manual platform. You need to still manually generate the quote and send it to your client. But now what's proposing is becoming, I would say, it's a full agentic platform and actually covering much bigger, I would say, promise of the sales funnel. So, Imagine sales partners that run themselves, and basically with the new proposals, this type of imagination would be the reality. We're going to have AI agents closing every deal from lead to revenue, and basically that's going to be the new reality of a proposal. So no longer quote to revenue. We are expected to lead to revenue platform, but I would think the most important thing is that everything will be done authentically by AI agents And when we talk agentically, we talk about four different agents. We have inbound agent. That's an agent that sits or lives in the client's website. Basically, every time a visitor comes to the client's website, they can start interacting with this agent. And the agent's goal is either to convert them to leads or even basically create and send personalized quotes to them. And that's a big promise. This agent is already live. It's already shipped and it's already working. And I will give you a presentation soon. And the second agent in the pipeline is outreach agent. So imagine the inbound agent already converted the client into a lead, but this lead got cold. So the outreach agent now going to take in charge and basically try to convert warm again this lead and basically make sure that it's warm enough to send him a quote and basically start his process of converting him. And then we have the third agent, so it's the deal agent. So once a quote is generated, this is when the deal agent's gonna start taking command, and basically his role is very simple yet important, making sure that this deal is converted. So basically it's no longer a quote, it's becoming a revenue. And basically the client signed the deal, closed the deal, paid for the deal. So that's the deal agent's responsibility. And last but not least, is the customer agent. So the customer agent is going to take command once the deal is already closed. So it's all going to be making sure the customer is happy, satisfied, that he's going to offer cross-sell and up-sell opportunities for the client. So between these four agents, we are talking a complete agentic sales funnel, you know, from lead to revenue, inbound agent, sit on the client's website, outreach agent, you know, a cold or outreaching, you know, cold leads and make sure that they are warm again, Deal agent, you know, make sure that the deal is closed, and customer agent, make sure the customer is happy, and we can upsell and close them as well. That's a big promise, and basically the solve, as I would say, of the issues of most businesses on planet Earth. And I want to show you a live example of how everything is working. Okay, so we are on a demo website of a pest control company from Phoenix, Arizona. Action, that's a real company, and basically what we did, we just put a demo agent on the website, the inbound agent. I'm going to now interact with him, ask him questions about the services they are offering, and everything is going to be done in real time. So basically this is not gonna be like, it's not like a pre-recorded demo or anything like that. What's going on right now, I'm gonna start speaking with this agent. So basically let's look to you like maybe like a normal, like a normal chat, but I would say now I can switch to voice mode as well.

Hey, good morning.

Good morning. What's going on with pests in your place? Oh, it's a lot going on, to be honest. Got it. Sounds like a busy situation. What pests are you seeing most right now? Ants, termites, roaches, or rodents? We have an ant issue. Got it. An ant problem. Are you looking for a one-time ant treatment or ongoing monthly ant protection to keep them from coming back? I don't know, it depends. How much is each? For ants, a one-time treatment is typically around $149. An ongoing monthly service is typically around $49 a month. I can send you the details for the one-time ant treatment or the monthly ant protection. Want me to send one of them? Yeah, I think let's start with the one off and take it from there. Perfect. I just need a couple of quick details and I'll send it right over.

Okay, so that was a real conversation I did with this agent, right? Everything was voiced. He gave me, like, a good answer. Everything, he got all the information about the specific two treatments that he had with iron control. In the end of the day, this bot just generated a custom quote for me. So I can click on the quote. It just, you know, generates for me and look at the price quote itself. So that's the quote. Like I say, it was $149. We have add-ons option. So I can add, let's say, $49 and add, like, multi-best treatment as well. So maybe I have cockroaches or other issues in my home. So you see the price was already changed from $149 to $199. I can click continue. He asked me if I want to add the tip, obviously, so I can already pay the service charge within the app itself. And final step going to be going to payment. So everything is done, you know, from the app. The bot basically in real time generated the real price quote for me. And that's a big promise. And whether it's gonna be the lead itself or whether it's gonna be the actual, you know, like sending the actual payment, then basically all of that's done now in real time with the bot, with the AI agent, and you can chat with him, you can speak with him like you're speaking with a human being. It's a very promising, I would say, offering. And now, So that's one, I would say, new feature, or it's not just a feature. That's the future of Proposely, what you just see, and it's a big, promising future. Proposely is going fully agentic. We are turning from, I would say, document flow type of platform for fully agentic sales funnel platform, everything formally to revenue and beyond. So that's a big promise, and that's already in motion. Inbound agents, already live, shift. Outreach agents, already in process. We are building it as we speak. Deal agents should be ready by the end of this quarter. We're talking about one and a half months from now. And customer agents will be following as well. So big promise with regards to this, I would say, agent in the direction of proposing. So, I want to cover another app. I know we mentioned maybe the AI Studio app before, but you never saw it in action. I want to now reveal how it looks like and what basically you can do with the AI Studio app. So the promise with the AI Studio app is design like a pro without being one. And you can see, like, I don't know how familiar you are with online marketing, but I would say the single biggest roadblock to nowadays in online marketing, I would say, is ad creative. So that's the most important, you know, like I would say part with any campaign, and especially with rich type of ad creative, whether it's banners, whether it's UGC video, whether it's commercial video. All of this type of video now taking a long time to produce, It's a bottleneck. You need to have a dedicated studio for it. It takes time. It's not something that the online marketer really can do itself. And basically, it's a real pain in the real bottleneck for, I would say, most businesses on planet Earth as well. And AI Studio was designed and built to solve this problem. So let me share my screen again with regards to the AI Studio app.

And one second.

Okay, so basically, I want to cover a few types of assets you can create with the app. The first type of asset that we're going to create is a banner. So every asset starts with a simple brief, right? Now, this is a real example of a real client of us in Canada, Oki Stickman, that's selling Oki gears online. And basically, so we give them the brand. You can pre-enter the brand, putting the brand book, his logo and everything into the platform. So the platform will know this specific brand already. Give him the campaign brief. You know what we're trying to sell. This like is going for a specific product. So I can check and upload the product images as well. And I select what type of facets I want to create, whether it's banner and image and clip, UGC video, commercial-led video, So once I selected, let's say in this specific example, banner, next will be to select a copy. So using AI, the system already pre-generated a copy for me. I can select a specific copy. I can customize it if needed. I can select a short copy. I can select a longer copy, for example. It doesn't matter. So once I'm happy with the copy, next will be the system will give me some kind of banner design direction. So give me like multiple direction. We have this with the person, this is just the gear in the front. You know, again, like multiple design direction, and I have like eight different design concepts I can choose from. So I can generate more if I need it, if I'm not happy. But let's say in this specific example, we selected this specific design, this is the concept that we are happy with, and basically we continue to production. In the production stage, I can select which channel I would like to generate the assets to, so each channel comes with all sets of, let's say, sizes for the banner, and basically in this example I selected meta, and it's generated, you know, like four sizes for me, and you can see like this specific example, This is more landscape type of banner, for example. Just one second. And everything was done by AI. So all this resizing was done, you know, from the concept banner by AI. There was zero human intervention. This is like a landscape banner, and this is like a more... Square banner, for example. So again, this is like real life, the real banner that the system is built, and everything done with, I would say, a few clicks. So from start to finish, if you remember, I started the campaign, gave him a brief, uploaded some product images, then selected the copy for the banner, then he gave me a few design options. I selected one design option, and then let's say I selected, I want to generate now four sizes for meta, generated, done. Everything, I would say, from A to Z, that may be a couple of minutes, max, and that's it. And if the same process would need to be done manually, let's say by a creative designer, that can be hours of work, you know, like doing everything, choosing the right copy, give a few concept directions for the banner, just creating the sizes is a lot of work by itself. And everything is done now with the platform. There's nothing shorter than amazing. So this is one type of video or asset I would like to show you. Another type is very similar in concept, but it's a UGC video. So again, we start with the brief. This is for another client of ours. It's a tiny lab. They're creating amazing baby toys. So once we created it, it give us a script of the video so we can select, you know, what type of, you know, like what is the story we want to say basically. And then next is cast. So the AI often has, you know, four different, I would say, people or personnel, like young mom in this example, to do the UGC so I can select what is best working for me. Obviously you have the full context of the brief so you understand where I'm locating, whether I'm in the U.S. or, you know, like in other countries, so obviously the people would be reflecting, you know, like the local people that are in this specific country. And then once I select, you know, like, okay, I'm going to go, like, this is the script that I want the person to say. This is, like, how the person should look like, and then I'm basically creating creating this video, and let's run it and see it ourselves. This was created by the AI.

Why did nobody tell me about this sooner? My little one is obsessed, and I'm not even exaggerating right now.

From the beginning.

Hey, mamas, why did nobody tell me about this sooner? My little one is obsessed, and I'm not even exaggerating right now.

Okay, that's nothing short and amazing, and this is the real product, so we upload this specific product, so this product is lived within the video, the person basically is saying exactly the script we wanted to say, we created a very authentic look type of UGC video, and the entire process again, second. So that's like, and imagine, you have like, I don't know, 20 products, 50 products, 500 products, it doesn't matter. And for all of them, the system can create this type of UGC video in minutes, I would say. Final example I would like to give is actually what we call commercial type video, right? So, again, started very similar with the brief. Again, OK Stickman, I uploaded the stick that I would like to promote. It's called Pro Blackout, and it's now on sale. It's more than 50% off, and I selected I wanted to do a TV tap commercial. Again, the system pre-generated to me like a different script and voiceover, I can say, so I can select one, let's say one story I would like to go for the commercial, and I have eight different, you know, type of, let's say, commercial I can create, you know, commercial types. It can be more of testimonials. It can be other stories, you know, like I can select from different, let's say, a different angle or direction. And then once I created, let's say, now I need to generate it. I can generate it landscape or vertical. It doesn't matter. And let's see the commercial the AI generated for us.

$300 sticks in a season? This one's the same carbon, same flex fat, $160. Hockey Stickman. Top end stiffs, half the price. Shock Pro Blackout. From the beginning. I've snapped $300 sticks in a season. This one's the same carbon, same flex fat, $160. Hockey Stickman. Top end stiffs, half the price. Shock Pro Blackout.

Cool. So again, this was generated by AI, look like million dollar, look like commercial, we can now shift to TV and whatever we need to do with it. And again, we control everything. Control the script, we can control the end count, the message, everything that need to be saying. And this is like, I gave you now three example what can be generated with this app. So if you need banner, if you need UGC video, if you need commercial grade, I would say TV-grade commercial. All of this can be done now with this app. I never saw something like this. This is probably the best, I would say, AI studio app out there nowadays. Correct me if I'm wrong, but then did you see anything better than this one?

It's very unique. I'm very thrilled about it.

Me too. Me too. So let's make the two of us. Okay. We go back to my presentation. So that's concluded my session. So I know we covered, you know, some of the highlights of this quarter. Equally important, we covered, you know, some very exciting stuff we can do now with AI, whether it's proposing, becoming fully agentic, a platform covering lead to revenue life cycles, you know, for most businesses on planet Earth. This is a massive, massive opportunity. And AI Studio. We can do magic now with using this up and solve a big problem, a big up in the market as well. So my final remark is going to be on the share price. Again, we cover it in every, I would say, earn equal 25 cents as of May 8th. We've seen a very big upside. If you're talking EV to gross profit, almost 600%. If you're talking EV to EBITDA, then a 13% upside. But again, I think shareholders should see Edcore as a different company right now, as an AI company. And I think what we've been demonstrating to you today is the future of Edcore. So hopefully you are excited as we are about this future and what it can bring to the company, what it can bring to potential client base, and what type of problems we are solving in the market today using AI. Thank you all very much.

Thank you, Omri. Very exciting stuff happening, and I appreciate you showing this to the audience today. With that, I want to hand it over to Amit Koforty, CEO of the company, for some financial highlights.

Good morning, everyone. Before beginning the financial overview, I would like to remind you that the following discussion will include financial measures as well as non-GAAP results. All amounts will be presented in Canadian dollars. The first quarter of 2026 showed a strong start to the year, with a strong revenue growth. The results reflect continued business momentum and ongoing efforts to improve the company's market position and client relationships. Let's review in more detail. For the three months ended March 31, 2026, we delivered revenue of $8.5 million compared to $7 million in the same period of 2025, an increase of $1.5 million or 22%. Gross profit for the three months ended March 31, 2026 was $3.1 million compared to $3.1 million in the prior year, relatively stable over the year. Gross margins for the three months ended March 31st, 2026 were 37% compared to 44% in the same period last year. The decrease in margins is mainly driven by changes in client mix. As for operational expenses, R&D expenses for the quarter were 0.4 million compared to 0.6 million in the prior year. The decrease in expenses is mainly due to increased capitalization of development costs. SG&A expenses for the quarter were $3.4 million compared to $2.8 million in the prior year, an increase of $0.6 million or 22%. The increase was mainly driven by payroll-related expenses and was partially impacted by foreign exchange rate fluctuations. Operating loss for the three months ended March 31, 2026, with $0.7 million compared to $0.3 million in the same period last year. Net loss for the three months ended March 31, 2026 was $0.8 million compared to $0.2 million in the same period last year, an increase of $0.6 million. Revenues and Gross Profits Looking at the quarterly results, we can see a strong year-over-year revenue growth. This continues the positive trend from the end of 2025 as shown in the fully results to the right. Gross profits remained relatively stable compared to the same period last year, and gross margins levels were impacted by changes in client mix, and we expect margins to improve and stabilize as the year progresses. As for the geographical revenue breakdown for Q1 2026, APAC revenue saw a very strong year-over-year increase of 42%, This increase was primarily driven by increased activity from existing clients and the acquisition of new clients. In EMA and North America, revenue decreased by 2% and 7% year-over-year, respectively. The results were mainly impacted by changes in client media budgets and foreign exchange rate fluctuations. Terms of financial positions. We had cash-on-cash equivalent of $5.1 million as of March 31, 2026, compared to $10.3 million at December 31, 2025. Total working capital amounted to $4.2 million compared to $5.1 million at December 31, 2025, a decrease of $0.9 million, or 18%. As for the liability side of the financial position, we can see that the company is still debt-free. The quarterly non-get results reflect adjustments for the following items. Depreciation and amortization, share-based payments, and other non-operational items. For the three months ended March 31, 2026, Adjusted EBITDA was negative $265,000 compared to positive $208,000 for the same period in 2025. The decrease in adjusted EBITDA was mainly driven by the increase in operating loss. With that, I will turn the call back to Martin.

Thank you so much, Amit. With that, we would like to move on to the Q&A portion. I will have a couple questions that came in. First question is for you, Omri. North America declined 7%, but you're seeing stabilization signals. What specific actions are on the way to turn that into positive growth this year?

Fair enough. So, yes, we are happy, you know, with the direction that this important market is going. We believe it is stabilizing, actually, and we are expecting to see, like, it return back to positive growth trend as the Iran fall. I mean, there's a lot of focus now that we are putting on this market, whether it's proposedly related, you know, that's going to be the biggest market for us when we're going to go fully on marketing with proposedly. And, again, a lot of initiatives that you're yourself involved with with regards to partnership as well. You know you and I just came back from a very successful event, TikTok Invest in New York City. So, again, this market is on the radar. We understand easy policy. We understand what it can bring to a company like Edco. And you're going to see great things coming from this market in 2026 and beyond.

Great, Omri. And I echo that. A lot of opportunities on both partnership front and AI capabilities in our tech stack. The following question, I think, is a bit more financial in nature, so maybe for Amit to answer. Constant currency growth was closer to 27%. Are you considering hatching strategies so reported results better reflect the underlying operational momentum?

Excellent. So basically, the company has... past experience with hedging, which is not that good. We are trying as much as we can to align the revenue with the expenses for each of the different currencies that we work in. And let's say that the Israeli shekel is strengthening against the US dollar, then we take proactive measures to reduce the expenses and to increase revenues in Israeli shekels. in order to reduce as much as possible the exchange rate and the impact on this.

Yeah, I can echo what Amit said. Basically, we tried before to edge. It didn't really work because you don't really control the direction the currency is going. We believe that, A, the company is quite diverse, right? We have revenue and expenses in multiple currencies, whether it's AUD, Israeli shekel, USD, Canadian dollar, Hong Kong dollars, and others. So basically, we are very much diverse. The key things for us, I would say, is making sure that if we have expenses in Israeli shekels, then we need to have income in Israeli shekels as well covering. So that's the best edge, I would say, that we can take.

Thank you both. Thank you. The next question is about R&D spending, which came down 24% year over year. Is that sustainable where you're simultaneously investing in Proposely and AI Studios?

Actually, it's a fairly interesting question. I would say a few things. A, shareholders need to bear in mind that we are capitalizing most of the R&D expenses. Having said that, we also have past, I would say, products that we capitalize, like, that we already now need to acknowledge them. So basically, at the end of the day, this is more or less flattening the R&D experience. Some is capitalized, some we need to show already. And I do think that what changed a lot is AI coding, right? So what we can do now using AI, I would say, X developer can develop X3, X5, you know, more code, faster code, than if we need even to compare it to one year ago. So I think like, for the long run, with the same amount of developers, even sometimes even less, we can do much more, we can build much more sophisticated technology. So I think like, in that front, I would say, things are looking very positive for software development. So it means we don't need to increase cost so much, but we can definitely increase productivity and what we can ship and deliver.

That makes sense. Thank you. Another question on the trade payables. They dropped from $8.4 million to $4.8 million Canadian dollars. Consistent with your seasonal media disbursement explanation, Does the predictability of this holiday cycle give you better cash flow visibility going forward?

Amit, you want to take this one? Yeah, definitely. Yeah, so in the advertising business, we see this seasonality of Q4, which is very high in activity, which usually the payments for the Q4 expenses are done in Q1. So we are very aware of this cycle. And we expect it to be also in forward, in later years, the same. So I think it is predictable.

Yeah, I think like a typical year for us, we're starting like, I would say, losing cash a bit because of seasonality, and as the year unfolds, we regain this cash, you know, so we continue to be positive about what we can do in 2026, and again, this is part of the normal course of, I would say, the business seasonality.

Great. Thank you both. Another question that just came in on the financial side is, could you provide commentary about EBITDA growth trajectory in the rest of the year? Do we expect EBITDA to improve on a year-on-year basis moving forward instead of declining?

So maybe I take that. I would say the short answer is yes. EBITDA should be positive for 2026. Again, Q1. It's, I would say, difficult quartering test remarks. You know, like there's a lot going on. There's a lot of expenses that are related to Q4 that's actually happening in Q1. So that's already part of the equation, I would say. And, again, the EBITDA was more or less flattened. So I think, like, if we look at early, then definitely we should be able to, you know, to showcase positive EBITDA here as usual, I would say.

Thank you. Thank you. Going to move on to a couple of questions that came in on the AI products and outlook on the product development. First of all, purposely, the inbound agent is in production and the AI studio is getting strong data feedback. Can you share any early quantifiable metrics such as users, pipeline influence, conversion rates, just to help investors size the opportunity?

Okay, I would say the following. It's a bit too early to, you know, to share this type of metrics with the shareholders, but I would say in terms of, let's say, the size of our opportunity is as big as it can get, you know. Like I said, if we're talking purposely and basically it's all, you know, like the issues that most of businesses and planters are basically struggling with, which is basically sales. So every business that starts with LEED and basically needs to turn this LEED into revenue, and again, this is most of the businesses in climate health, whether it's own services like the pest control action company that we show from Arizona, whether it's, I don't know, like in a college, for example, that basically you want to recruit new students to start, you know, like the next year with them. Whether it's a company, a tech company or services company like EdCorp that serve, you know, clients for digital marketing or offering, you know, software to clients. All of these companies started their sales generally with a lead and basically needs to convert this lead into revenue and basically they needed to, like, propose an energetic tool to help them to achieve exactly that. So we're talking about billion of billion of billion of market share and this, like, the potential is, I would say, unlimited. So this is just proposal-y. And if you talk in an AI studio, then again, like online marketing, it's a massive business. We're talking hundreds of billions of dollars every year going to online marketing. And like I said, the single biggest bottleneck nowadays In online marketing, it's digital assets. It's the videos. It's the balance. It's everything that you need to create. So we are tackling or solving the biggest problem nowadays in online marketing, and that shows you, you know, the potential of a tool like AI Studio F2F. And like I said, we are getting, like, the feedback that we are getting from early users is, like, wow. Like, we couldn't believe, like, where are you guys, you know, like, I don't know, a year ago or even six months ago. And that's exactly what keeps us, you know, so excited about the solution we are building and why we continue working so hard, you know, like building it, improving it, and making sure that we are the best out there, which we are currently.

That's great. Yeah, and it's a great testament how fast AI is developing and how, of course, able to adapt and leverage that. Given the time, we have room for one or two more questions, and then I want to add to the closing remarks. One more question around the product stack. How are you thinking about cross-selling these new AI products into your existing marketing cloud client base?

It's a good question, I would say, and I wouldn't think that people would be surprised for my answer, but the first phone calls that we are doing is for existing clients, right? So if we launch AI Studio, the first phone calls will be to existing clients, hey, we have something amazing to show you guys, you know, and we want you guys to test it, to try it, to see, to give us your feedback. So I think, like, existing clients are the best type of clients we can, you know, like... work with when we launch new products, whether it's Proposy, whether it's AI Studio. So trust me, these are almost and always going to be the first phone calls that we're going to make when we launch something new. You can trust on it.

Thank you, Omri. And the last question for today. Is Proposy strategically planning to position itself more aggressively into the growing high-ticket sales markets?

That's actually an interesting question or remark, and I would say the following. I'll answer this question with a story. When we initially thought about Proposely, and it was just an idea, you know, that's sitting there, a drawer of nice things to do, startups to build, that basically the ICP that we were thinking about was home services, small businesses, you know, and there's plenty of them on planet Earth. You know, if you're talking U.S. alone, a test-controlled business, it's $25 billion yearly. just on pest control services in the U.S. So it's a massive market, and roofing, and construction, and, you know, like air conditioning. Like, we're talking about like multi, multi billions, you know, almost trillion dollars, I would say, just on services in the U.S., maybe. Accumulative, or half a trillion, you know, like it's big numbers that we are talking about. And these numbers are actually built up from a lot, a lot of small businesses in different towns and and cities within the U.S., for example, and other places in the world as well. And we said, okay, let's build something for this group of people. And like I said, it's not a small group, right? It's like a big, big industry by itself. And then when we start building proposals, we say, wait, even companies like us, like Edco, should actually use proposals to send proposals, you know, to clients. And we are, I take it like this equation, saying, I would say if you're in a lead to revenue business, which most, you know, businesses in Planet Earth are still in this business, then definitely you should use Proposely. That would be my answer, so I don't care if you are Home services from, you know, like from Arizona, for example, from Phoenix, Arizona, or you are an tech company sitting in Tel Aviv, Israel, it doesn't matter. You are in a little business, in a little revenue business, you need to use Proposal.

Thanks so much, Omri. Very exciting to hear about this potential. With that, is there any closing remarks you want to share with the audience today before we wrap up the call?

So I think that we covered a lot, right? We started, this is also something Amit mentioned as well. We ended up 2026 strong, the Q4 result was really strong for us. And we started Q1 2026 strong as well. So that means the same momentum that we saw in the end of the year in 2025 is carried well into 2026. That's always keep us very positive. about what we can achieve as the year unfold. But what even keep us more positive is the, I would say, level of innovation and depth of innovation now we can do using AI. And we give you like a few, I think, like astonishing example, you know, like about the inbound agent. I speak with him on the fly, generate a custom quote for me for unscrupulous issues that I have. I can send it over, you know, send it in the chat. You can send it to my WhatsApp or email, whatever. Contact detail I gave you, you showed like how I can easily in minutes create astonishing, you know, like banners, UGC video, commercial ads, you know. All of that that you see right now wasn't exist in the beginning of 2026. So this is something we built and shift during Q1 2026, and this is like, that's amazing. So again, ESCO is changing. We're becoming like a full AI company. The potential is massive for us. And I think, like, that's the best story to tell them right now. And we are excited about those things ahead of us, you know. That's the honest truth.

All right. Exciting things ahead. And with that, we conclude the earnings call Q1 2026. We thank you, of course, Omri and Amit. And most of all, we thank you, everyone, who is joining this earnings call today. We look forward to seeing you next time. And for now, we wish you a great rest of your day. Thank you.

Thanks, guys.