Real Matters Inc.

Good day, and thank you for standing by. Welcome to the Real Matters Second Quarter 2025 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Lynn Beauregard, Vice President, Investor Relations and Corporate Communications. Please go ahead.

Thank you, operator, and good morning, everyone. Welcome to Real Matters Financial Results Conference Call for the second quarter ended March 31st, 2025. With me today are Real Matters Chief Executive Officer Brian Lang and Chief Financial Officer Rodrigo Pinto. This morning, before market opened, we issued a news release announcing our results for the three and six months ended March 31st, 2025. The release, accompanying slide presentation, as well as financial statements and MD&A are posted in the investor relations section of our website at realmatters.com. During the call, we may make certain forward-looking statements which reflect the current expectations of management with respect to our business and the industry in which we operate. However, there are a number of risks, uncertainties, and other factors that could cause our results to differ materially from our expectations. please see the slide entitled Cautionary Note Regarding Orb Looking Information in the Company Slide presentation for more details. You can also find additional information about these risks in the Risk Factors section of the Company's Annual Information Form for the year ended September 30, 2024, which is available on CDAR Plus and in the Investor Relations section of our website. As a reminder, we refer to non-GAAP measures in our slide presentation, including net revenue, net revenue margins, adjusted net income or loss, adjusted net income or loss per diluted share, adjusted EBITDA, and adjusted EBITDA margins. Non-GAAP measures are described in our MD&A for the three and six months ended March 31st, 2025, where you will also find reconciliation to the nearest IFRS accounting standards measures. With that, I'll turn the call over to Brian. Brian?

Thank you, Lynn. Good morning, everyone, and thank you for joining us on the call today. Our business delivered solid results in the second quarter as we continued to deliver top-of-the-scorecard performance and onboard new customers. We posted consolidated net revenue of $10.1 million compared with $11.5 million in the second quarter of 2024, mainly due to a double-digit decline in the addressable U.S. purchase mortgage origination market. Our U.S. title segment delivered strong year-over-year growth, driven by net market share gains with clients and higher refinance origination market volumes. We posted double-digit revenue growth in U.S. title and Canada year-over-year, and we continued to leverage our network management model and disciplined cost management to drive net revenue and EBITDA margin improvements. U.S. appraisal revenues were down 9% sequentially, However, we outperformed an estimated double-digit decline in market volumes. Our net revenue margins improved by 80 basis points quarter over quarter to 27.3%, keeping us in the range of our target operating model for the 10th quarter in a row. And U.S. appraisal adjusted EBITDA increased to $2.6 million from $2.4 million in the first quarter due to lower operating expenses. We maintained our leadership position in U.S. appraisal, ranking as a top performer on lender scorecards. Our U.S. appraisal business is in a strong position. We have additional capacity with our existing operating cost base, which should deliver strong operating leverage once more volumes flow across our platform. U.S. title revenues were 2.3 million, down from 2.5 million in the first quarter, which was a relatively robust quarter, as you'll recall, driven by closings from the short-lived September interest rate rally. On a year-over-year basis, our U.S. title business continues to build momentum. We outpaced estimated market volume growth in the second quarter and posted an increase in refinance origination revenues of 40% year-over-year as a result of our growing client base and net market share gains. With the increase in refinance origination revenues, net revenue margins increased 810 basis points on a year-over-year basis to 52.1%, in the second quarter. We launched one new client in two channels in Q2, and we expect that our new tier one title client will go live in the coming months. Our sales efforts are in full swing as we are confident that this is the time to amplify our efforts to capture more market share. Over the past five years, we've consistently expanded our client base, steadily bringing new clients onto our platform. However, the full impact of this growth hasn't yet been reflected in our results due to the current state of the refinance market. We believe this growing client base represents a coiled spring poised to create significant momentum as market volumes rebound. With nearly 10 million outstanding mortgages with rates above 6% and nearly 7 million mortgages above 6.5%, the pool of rate term refinance candidates continues to grow. Americans also have record levels of equity in their homes. 82% of borrowers have at least 30% equity, which could become a readily accessible source of cash in a recessionary environment. Turning to Canada, revenues for the segment were up 11% on a year-over-year basis, and net revenue margins remain near all-time highs at 19%. We launched two new clients in Canada during the second quarter. With that, I'll hand it over to Rodrigo.