Altus Group Limited

Good day, everyone. Welcome to Altus Group's Q4 and full year 2025 financial results conference call. At this time, I would like to hand things over to Camila. Please go ahead.

Thank you, Lisa. Hi, everyone, and welcome to the conference call and webcast discussing Altus Group's fourth quarter and year-end financial results for the period end of December 31st, 2025. Our press release MD&A financial statements and the slides accompanying our prepared remarks, they're all available on our website. and as required, have been filed to Cedar Plus after market closed this afternoon. I'm joined today by our CEO, Mike Gordon, and our CFO, Pavan Chhabra. Before we get started, I wanted to point out a couple of things. As discussed at our investor day, beginning with our Q4 results, we have rolled out some of our new disclosures. To help investors and analysts rebuild their models under a new reporting format, we have published a supplemental document that shows the representation of our historic results. posted on the investor section of our website along with the other materials I referenced. Earlier this week, we announced the sale of our appraisal business in Newmark. This business has been moved under discontinued operations for our results. And accordingly, our results for continuing operations exclude the appraisal business revenue and adjusted EBITDA contribution. Also of note, we plan to eliminate the corporate cost line in our reporting at some point in 2026. Turning to our disclaimer slide, some of our remarks on this call and in our disclosures may contain forward-looking information based on certain assumptions and are therefore subject to risks and uncertainties that could cause actual results to differ materially. Please refer to the forward-looking information disclaimer in today's materials. We also use certain non-GAAP financial measures, ratios, total of segments measures, Capital management measures and supplementary and other financial measures as defined in National Instrument 52112. We believe these measures provide useful additional insight into our performance and they may assist investors in evaluating our shares. However, they are not standardized under the measures of IFRS and may differ from similarly titled measures used by other issuers and may not be comparable. They should not be considered an isolation or a substitute for IFRS measures. Further details are provided in our IR materials as well. And finally, unless otherwise noted, all percentage and basis point growth rates discussed on today's call are presented on a constant currency basis relative to the comparable period in 24. I would also like to point out that the supplemental document includes the majority of those numbers on an unreported basis. And with that, I'll now turn it over to Mike.

Thanks, Camilla. And hello, everyone. Before we begin, there's been a lot of market discussion around how AI may reshape the software landscape. Let me take a moment to address how we view this at Altus and why we believe our position is well protected. From our perspective, AI reinforces our strategic direction and strengthens the advantages that already differentiate our business. In commercial real estate, valuation, accuracy, auditability, and trusted data are non-negotiable. These decisions influence significant capital deployment and involve robust scrutiny and fiduciary responsibility. Outcomes must be explainable, defensible, and grounded in high-quality data. That's precisely where Alta stands apart. So first, our solutions are trusted in CRE evaluation, to the point where quote, unquote, Argus it is commonly used as a verb in the industry. When a product becomes shorthand for the task itself, it signals our position in critical client workflows and market trust that goes well beyond the software features. Second, our strength is amplified by our network effects arising from significant value provided to our customers. Our valuation solutions are core to the valuation collaboration across investors, lenders, owners, appraisers, asset managers, and auditors. We are not just a tool used by one stakeholder. We serve as a platform that facilitates the creation, review, and use of valuation information by multiple stakeholders in the CRE industry. Every additional participant in this ecosystem reinforces the value of the platform for all others, and this is not something that can be easily replicated. Third, As AI evolves, our role becomes even more strategic. We are enhancing our agentic capabilities to do more than just generate insights, but rather perform critical actions within the valuation workflow. From data ingestion and validation to scenario analysis and recommendation engines, our platform will increasingly act as the orchestration layer that connects and coordinates every stakeholder in the valuation process. And finally, across the CRE ecosystem, Argus is the system of record for valuations. We support tens of thousands of users globally, stewarding valuations on portfolios and funds worth millions and billions of dollars in value. That scale creates proprietary data sets, historical context, and benchmarking depth that is extremely difficult to replicate via AI. When we at Altus think about AI, we don't see disruption to our model, but we see acceleration. AI systems are only as powerful as the data, the context, and the workflow integration behind them. Those are precisely our advantages. Additionally, with our strategic shift to asset-based pricing, we see ourselves as less vulnerable to the disruption risks associated with seat-based models. We also believe that our increasing use of AI internally has potential to unlock tremendous efficiencies. As we demonstrated at our investor day, the internal use of our valuation agent capabilities will free up our VMS experts time and significantly reduce manual work and focus on higher value tasks. We demonstrated how automating the valuation process can decrease the time to valuation by up to 90%. This is on top of AI deployment within our R&D teams, where increased use of AI coding will further optimize our R&D expenses, increase our speed of innovation, rapidly increase the value and the delivery of our products to our customers. Again, we see AI as the accelerator to our strategic efforts, not a threat. Now, turning to our full-year financial results, 2025 was a year where steady revenue growth and excellent retention reinforced the strategic importance of our solutions. Even in the softer market, we demonstrated that demand for our solutions remains resilient and driven by client needs, not market cycles. The team also demonstrated strong cost discipline and operating leverage. driving a 310 base point improvement in consolidated margins. As you'll hear from Pavan shortly, we see more opportunity to drive margin improvements in this coming fiscal year. We are also beginning to see the cash generation potential of the business come through, which gives us confidence as we look to enhance our capital return plans. The team executed well against our strategic initiatives, driving value for clients delivering innovation, and optimizing our corporate structure and capital allocation to unlock shareholder value. Upgrading Argus Enterprise clients to Argus Intelligence remained a major focus for us. We closed the year with the vast majority of our clients recontracted and are now turning our attention to driving deeper engagement on the platform and adoption of our add-on capabilities. On the innovation front, we bolstered Argus intelligence with benchmark manager and advanced valuation agent. For those of you who missed the demo, we have advanced our AI capabilities to make the valuation process faster, more accurate, and insightful. This is already being tested internally with our VMS professionals. AI complements the professional judgment of our evaluation experts, helping reduce their effort while at the same time increasing the amount of information used to reach conclusions. Our AI capabilities are quickly evolving from optimization and information analysis to more complex agent-led workflows for decisioning. We have a deep roadmap on continuing to enhance both agentic and decision-making AI and see a significant opportunity to drive efficiency and value for clients. We also deliver numerous featured feature enhancements throughout the year. As of note, we have been approved for a patent on the Altus Knowledge Graph, reinforcing the R&D investments over the past years. The Altus Knowledge Graph, which is built on our AI, enables us to connect disparate asset level data to form a common golden record using an Altus ID. It is a foundational component of Argus Intelligent, as we help our customers collaborate with each other and collate their data. Strategically, we're doubling down on the simplification of Altus, both through portfolio and organizational optimization, as we enhanced our capital allocation framework with a higher weighting towards capital returns. We kept the momentum going starting the year at an accelerated pace. We opened the year on a high note with some client announcements. I'm pleased to share that we now have Big brokers upgraded to Argus intelligence, including JLL, Newmark, and Cushman. And we are currently migrating their data to the platforms using our integration data solutions. We are also making meaningful progress on our portfolio rationalization. We announced the sale of the Canadian appraisal business and have a couple additional divestitures underway that we anticipate could close in the first half of 2026. including having recently signed an LOI for the Canadian Development Advisory Business. In addition to the AD&A segment, we have identified select non-core analytics businesses for potential divestiture. Our objective is to sharpen our focus and simplify the portfolio as we continue our transformation and prepare for a U.S. listing in 2027. On the cost side, we took decisive steps to streamline operations, reduce unnecessary layers, and align our cost structure with our future direction. Earlier this month, we initiated a restructuring program and other cost actions that will deliver millions of dollars in annualized savings. Alongside this, we implemented targeted go-to-market refinements designed to better support client needs and drive growth. These decisions are never taken lightly. but they are important to ensure we operate with focus and discipline. And then finally, we remain committed to returning capital to shareholders and announce that the Board approved an increase to our annual plans, giving us the flexibility to deploy up to $800 million this year. We can do this through a combination of various methods, including our NCIB and potential SIB tenders. We're evaluating methods to return up to an additional $450 million to shareholders within the first half of 2026. Our plan is to be in the market over the next 100 days returning that capital. We believe the current market environment presents an opportunity to allocate capital at attractive return levels, and our best investment continues to be on Altus itself. It's certainly been a busy period, but that pace reflects our ambition. We are moving with urgency and discipline because we see the real opportunity to create value. I'll now turn things over to Pavan to dive into our quarterly results. Pavan?