Blackline Safety Corp.

Hello, and welcome to Black Line Safety's second quarter results conference call. This conference is being recorded, and I would now like to turn the conference over to Jason Zandberg, Director of IR. Please go ahead.

Welcome, and thank you for joining us. On this call today, we'll be discussing our fiscal results for the second quarter ending April 30th, 2025, which were released earlier this morning. With me today is Cody Slater, CEO and Chair of Black Line Safety Corps, Blackline CFO Robin Coyman, and Sean Stinson, President and Chief Growth Officer. I will turn the call over to Cody for an overview of our second quarter 2025 results, and Robin will then discuss the financial highlights. I'd like to remind everyone that an archive of this webcast will be made available on the investor section of our website. I would like to note that some of the information discussed in this call is based on information as of today and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those sent forth in these statements. For discussion of these risks and uncertainties, please review the forward-looking statement disclosure in the earnings release, as well as in the company's CDAR Plus filings. During this call, there will be a discussion of IFRS results and non-GAAP financial measures, non-GAAP ratios, and supplementary financial measures. A reconciliation between IFRS results and non-GAAP financial measures is available in the company's earnings news release and MD&A, both of which can be found on our websites at blacklinesafety.com and on CDAR+. All dollar amounts are reported in Canadian dollars unless otherwise noted. With that, I will now hand the call over to Mr. Slater.

Thank you, Jason. Good morning, everyone, and welcome to Blackline Safety's second quarter 2025 conference call. I am pleased to report record Q2 results as we extend our streak to 33 consecutive quarters of year-over-year growth and navigate the dynamic macroeconomic environment. Second quarter revenue was $35.9 million, up 14% from last year, and our adjusted EBITDA was $1 million compared to a loss of $2 million a year ago. Looking at the first half results, revenue grew by 27% to $73.6 million compared to the same period last year, reflecting the strength of our connected safety solutions and our expanding market presence. In the second quarter, net dollar retention stood at 128%, the eighth consecutive quarter above 125%. This consistently high retention rate demonstrates the value customers place on Blackline's connected safety solutions. Expansion from our current customers, along with our ability to secure new customers, helped drive our annual recurring revenue up 33% year-over-year to a record 75.2 million by the end of the quarter. Service revenue in Q2 increased 31% year-over-year, fueled by strong device activations and sustained rental demand for our connected products. Product revenue, however, declined by 5% year over year as our customers were impacted by geopolitical instability and trade policy shifts, which dampened business confidence globally and particularly in North America, leading to a more cautious investment environment. When looking at Q1 and Q2 together, product revenue for the first half of 2025 rose by 21% compared to the same period last year. underscoring the strength of our continued momentum into the second half of the year. Building on the successful launch of our X08 area monitor, this quarter we introduced a version equipped with gamma radiation detection. We generated strong initial demand from customers, including 21 new orders on the day of launch. This product strengthens Blackline's offering in the fire and hazmat and emergency response markets, offering further opportunities for growth. I wanted to take a moment to address our experience with the US tariffs in Q2. We incurred a tariff expense of $351,000 on inventory shipped to the United States, despite our best efforts to navigate this volatile environment. Shortly after these tariffs were incurred, the US administration changed its policy on USMCA compliant products. While this expense did not have a large impact on our financial performance, Our experience highlights the uncertainty all businesses, including our customers, are facing when it comes to cross-border trade. We believe this uncertainty led to a slowdown on purchases in April, which had a negative impact on our sales momentum in the quarter. Fortunately, as of today, our devices are not subject to tariffs currently in place on goods shipped to the United States from Canada, as they are USMCA compliant. In our Q1 earnings call, we outlined a plan to assemble products in our Houston location. Given the current trade policy landscape, specifically the exemption for USMCA-compliant products, at this stage, we have adapted our plan to continue to manufacture and assemble out of our Calgary location. As we have mentioned before, because we manufacture our own products, we have the flexibility to respond and adjust as needed. Looking back at Blackline's historical performance, since the second quarter of 2022, revenue has more than doubled and gross profit has more than tripled, while operating expenses have only increased by 17% over the same period. This not only demonstrates the strong demand for our connected safety products, but also the disciplined manner in which we run our business. I would like to now turn the call over to our CFO, Robin Koyman, Go over the financials for the quarterly results in more detail.