TelyRx Holdings Inc.

Good morning, everyone, and welcome to TeleRx's first quarter 2026 financial results conference call. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question and answer session. To join the question queue, you may press star and then one on your keypads. You will hear a tone acknowledging your request. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. If anyone has any difficulty hearing the conference, you may press star and zero for operator assistance at any time. Please also note today's event is being recorded. Listeners are reminded that portions of today's discussion may contain forward-looking statements that reflect the company's current views with respect to future events. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. For more information on TELI-RX's risks and uncertainties related to these forward-looking statements, please refer to the company's filing statement dated March 24, 2026, which is posted on CEEDAR+. In addition, in today's discussion, we will refer to non-IFRS financial measures such as adjusted EBITDA that do not have any standardized meaning prescribed by IFRS. Management believes non-IFRS results are useful to enhance the understanding of the company's ongoing performance, but these are supplemental to and should not be considered in isolation from or as a substitute for IFRS financial measures. These non-IFRS measures are defined in our earnings press release and available in our MD&A, which also includes a reconciliation of these measures to their respective most directly comparable IFRS financial measures. The company's press release, MD&A, and financial statements are available on its website and on CEDAR+. All figures presented on today's call are in U.S. dollars unless otherwise stated. This morning's call is being recorded on the 13th of May, 2026, at 8.30 a.m. Eastern Time. I would now like to turn the floor over to Vanessa Slowey, President and Chief Executive Officer of Telerx.

Thank you, and good morning, everyone. Welcome to our first quarter 2026 earnings call. With me this morning is our Chief Financial Officer, John Cassio. We are meeting a moment in healthcare. Telerx is advancing a simple but powerful mission to deliver essential medication directly to patients with no friction, no delays, and no barriers. The way people access medication is changing, and we believe those changes are permanent. Hundreds of millions of Americans manage chronic conditions, need routine prescriptions refilled, or simply want a fast, affordable answer to an acute health question. Yet, the traditional health care system remains fragmented, slow, and inconvenient. Think antibiotics. Chronic conditions like asthma and diabetes for women's and men's health. These are common everyday conditions for patients who know what prescription they need, and they do not want to make an appointment under the healthcare provider to get it. Our vertically integrated platform compresses the doctor to pharmacy journey into a single digital experience. A patient visits our website, chooses from more than 400 FDA-approved medications, and the request goes to a licensed healthcare professional in their state who reviews and determines if it is appropriate. If approved, the prescription is dispensed with one of our licensed pharmacies and delivered directly to their door. No lines, no waiting, no travel, and no insurance required. The patient pays cash, the cost of the medication, plus a simple $22 visit fee. TeliRx doesn't compete with traditional healthcare It replaces a behavior. We hold the first mover advantage in a rapidly growing cash pay market, and patients have proven they want this. And our platform is resonating. A significant share of our revenue is driven by repeat customers demonstrating real stickiness. With coverage to reach over 97% of the U.S. population, the switching costs we create are the ones that pure telehealth providers and pure pharmacy players simply cannot replicate. The opportunity is substantial. The U.S. cash-free prescription market is large and growing rapidly, yet remains largely unaddressed by traditional pharmacies whose focus and business model depend on insurance. As changes in the U.S. insurance market accelerate, patients are increasingly willing to bypass that complexity and pay directly for convenient, everyday care. We are executing a disciplined patient-first strategy to capture that opportunity. and our growth speaks for itself. In the first quarter of 2026, the three-month period ended March 31st, 2026, KellyRx delivered continued strong financial unoperating performance. Revenue grew by 180% to $19.4 million over the prior year quarter. Prescriptions fulfilled in the first quarter increased to 236,000 in Q1. That's up 188% over the prior year quarter. And adjusted EBITDA was a loss of 2.3 million. Our financial performance reflects the contribution from growth in prescriptions filled, overall sales volumes, and the contribution from new and recurring customers. I'm very proud of the entire Telerex team, those in our pharmacies, and the people that work hard every day to deliver an excellent customer experience. It is the dedication and hard work of the collective team that has enabled us to deliver these results. And this is just the beginning. I will now turn the call over to John Cascio, who will discuss the first quarter financial results in more detail. John?

Thank you, Vanessa, and good morning, everyone. As Vanessa outlined, we delivered solid growth in our key financial metrics for the three-month period ended March 31, 2026. Revenue in the first quarter grew to USD 19.4 million compared to 6.9 million in the first quarter of 2025, an increase of 12.5 million, or 180%. Throughout the first quarter, the company achieved consistent month-over-month revenue expansion, resulting in an 11.6% compounded monthly growth rate for the period. The year-over-year increase in revenue was primarily driven by growth in overall sales volumes and contribution from both recurring customers and new customer acquisition. Revenue consisted of revenue from recurring customers of 12.6 million in the quarter and revenue from new customers of 6.8 million. First quarter gross profit increased to 10.7 million from 3.5 million in the first quarter of 2025, an increase of 7.2 million. Gross margin was 55% in the first quarter of the year, up from 50% in the same period a year ago. The increase in gross margin was primarily due to improved purchasing economics for prescription medications, including increased direct purchasing for manufacturers and more favorable pricing negotiations with wholesale suppliers. Gross margin also benefited from lower transaction costs from improved margins on shipping and handling. Adjusted EBITDA in the quarter was a loss of $2.3 million compared to a gain of $218,000 in the first quarter of 2025. Total net loss was $4.7 million for the three months ended March 31, 2026, compared to a gain of $38,000 for the same period last year. The loss in adjusted EBITDA and the net loss was primarily driven by greater marketing, operations and support, and general and administrative expenses as the company continues to scale. Cash used in operations in the first quarter was $1.3 million compared to cash generated of $133,000 in the same period last year, while free cash flow in the first quarter of 2026 was a loss of $715,000 compared to a loss of $268,000 in Q1 2025. 236,000 prescriptions were filled in the quarter, including record prescriptions filled of 87,000 for the month of March of this year, compared to 82,000 in Q1 2025, an increase of 188%. Turning to the balance sheet. As of March 31, 2026, we had cash and cash equivalents of $27 million as a result of the equity financing completed in the first quarter. up from $3 million at December 31, 2025. We have meaningful operating leverage across a number of areas, and the business can scale significantly with modest to no additional investment. CapEx is modest given the investment that we've already made to date and given the nature of the operating leverage in the business. Overall, our financial position remains very strong, and we believe we are well-positioned to support continued growth while maintaining a conservative, leveraged profile. And with that, I'll turn the call back over to Vanessa.