Altus Group Limited

Ladies and gentlemen, thank you for joining us and welcome to Altus Group's Quarter 2, 2026 Financial Results Conference call and webcast. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Camilla Bartosiewicz, Chief Communications Officer. Camilla, please go ahead.

Thank you, operator. Hi, everyone, and welcome to the conference call and webcast discussing Altos Group's second quarter results for the period ended June 30th, 2026. Our press release, MD&A, financial statements, and the slides accompanying our prepared remarks are all available on our website and, as required, have been filed to Cedar Plus after market close this afternoon. I'm joined today by our CEO, Mike Gordon, Pawan Chhabra, and our new CFO, Katie Royce. 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, 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 may assist investors in evaluating our shares. However, they are not standardized under IFRS and may differ from similarly titled measures used by other issuers and therefore may not be comparable. They should not be considered in isolation or as a substitute for IFRS measures. Further details are provided in today's IR materials. 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 2025. With that, I'll now turn it over to Pawan to cover our Q2 results.

Good evening, everyone, and thank you for joining us Our second quarter results reflect the continued progress we're making towards a more focused, higher growth, higher margin business. Revenue grew 6%, adjusted EBITDA increased 34%, margins expanded by 540 basis points, and adjusted EPS increased 36%. As a reminder, the prior period included 111. Excluding 111 from the comparative period, both revenue and recurring revenue grew 7%. reflecting stronger underlying performance in the reported results. Net income declined year over year, driven primarily by items outside of our core operating performance. This included approximately 10.7 million unfavorable foreign exchange swing compared to last year, as well as approximately 5.2 million of one-time costs related to strategic corporate initiatives and activities supporting our divestitures. Turning to the revenue by line, growth was once again led by our flagship offerings, Argus Intelligence and VMS. Software revenue grew double digits for a second consecutive quarter, driven by strong Argus Intelligence sales. As Mike will discuss shortly, we are seeing encouraging improvements in sales execution. VMS revenue grew 7%, underscoring its critical role in supporting our clients' compliance and valuation workflows. It also serves as an important entry point to Argus Intelligence, creating opportunities to deepen client relationships over time. In data, which reflects our standalone market data offerings, TURN continues to trend in the right direction, and we expect that progress to be increasingly reflected in revenue as we move toward year end. Services revenue declined year over year. Excluding 111 from the prior period, revenue would have been down modestly. Overall, we're encouraged by the continued strength in software and VMS and the improving trends we're seeing in data. Our KPIs remain healthy and continue to support the strength of our recurring revenue model. Software ARR increased 10.4% to 206.8 million, while NRR was 106.9%. Consistent with our long-term growth practice, and others. In terms of growth profile, approximately 80% of the growth came from volume and pricing with new low acquisition contributing to the balance. VMS metrics also remain strong, underscoring the critical role VMS plays in our clients' valuation and reporting workflows. Overall, these operating metrics reinforce the predictability and resilience of our recurring revenue base. Turning to the P&L, we continue to make progress towards our target operating model. Gross margins expanded by 190 basis points reflecting revenue growth and operating leverage in the business. G&A declined by 360 basis points as a percentage of revenue driven by our restructuring actions, portfolio simplification, and disciplined management of corporate costs. We also continue to invest in growth. Sales and marketing expense increased and included the impact of Altus Connect, our annual client conference. R&D increased modestly as we continue bringing more solutions onto the Argus Intelligence platform. The result is meaningful margin expansion while continuing to invest in our growth priorities. And finally, a recap of cash generation in the balance sheet. On a year-to-date basis, underlying cash generation improved by approximately $7 million year-over-year before interest and taxes driven by stronger billings and collections. The year-over-year comparison is also affected by the inclusion of businesses classified as discontinued operations, taxes related to the property tax sale, and lower interest income following the return of excess cash to shareholders. Our balance sheet remains a source of strength. We ended the quarter with $61.9 million of cash, funded debt to EBITDA of two times, and approximately $364 million of available capital. We continue to optimize our capital structure and expect leverage to settle in the mid two times range over time. With capital returns, we have now returned approximately $450 million to shareholders year to date. Reducing our share count by roughly 20% to 34.7 million shares outstanding. Before I hand it over to Mike, I'd like to thank the entire Altus team for their hard work and commitment over the years. I'd also like to thank our shareholders, clients, analysts, and the broader investment community for their engagement and support. I am proud of what we've accomplished together and the results that we've delivered. I'll turn it over to Mike.