Tiny Ltd.

Good morning and welcome to the tiny limited Q4 and fiscal 2025 results conference call. All lines have been placed on mute to prevent any background noise and after the speaker's remarks there will be a question and answer session. If you'd like to ask a question during this time simply press star and then number one on your telephone keypad. If you'd like to withdraw your question please press star followed by two. Before we start we ask you to take a moment to read the disclaimer at the beginning of the slides. accompanying this presentation as it contains important information. We'd also like to remind you that all amounts discussed in this call are denominated in Canadian dollars unless otherwise indicated. Please note that statements made during this call may include forward-looking statements and future orientated financial information regarding Tiny and its business. and disclosure regarding possible expectations, events, conditions, or results that are based on information currently available to management, which indicate management's expectation of TINI's future growth, results of operations, business performance, and opportunities. Such statements are made as of this date hereof, and TINI assumes no obligation to update or revise them, except as required by applicable securities laws. Such statements involve significant risks, uncertainties and assumptions and are not a guarantee of future performance or results. A number of these risks and uncertainties could cause results to differ materially from the results discussed today. Given these risks and uncertainties, one should not place undue reliance on these statements and information. Please refer to the forward-looking statements disclaimer in the slides accompanying this presentation and in the company's press release issued today for any additional information. We use non-IFRS financial measures to help investors understand our operating performance. Non-IFRS financial measures may not be comparable to similarly titled measures used by other companies and should be considered along with, but not as an alternative to, measures calculated in accordance with IFRS. I'd now like to turn the call over to the executive team from Tiny for today's earnings call. Please go ahead.

Thank you. Good morning, everyone. Thank you for joining our 2025 year-end earnings call. I wanted to start by thanking the entire Tiny team, including all of our wonderful portfolio companies, for a truly great year. We made significant progress across a number of strategic and financial priorities. We grew our adjusted EBITDA, recurring revenue, and free cash flow significantly We meaningfully reduced our leverage profile through debt repayment and increased profitability. We uplisted to the TSX, which was a monumental task for our finance team and across the portfolio. We completed the majority acquisition of Serato, the world's leading DJ software company, and continued to optimize the portfolio through strategic divestitures and cost discipline. I am extremely proud of the work our team completed this year. And it's both validating and humbling to see Letterboxd and Metalab recently recognized among the most innovative companies in the world by Fast Company. Continuing on. As reported, Tiny's gross revenue increased 9% compared to Q4 25 and 5% on a full year basis. Our growth was mainly driven by the Serato acquisition and growth in digital services, excluding these strategic divestitures completed in Q4-24. Growth for the quarter was 15% when excluding these divestitures, as well as the divestiture of WeWork remotely. We remain excited about Serato's future prospects as we continue to invest in product roadmaps, including rolling out thoughtful integrations of additional AI capabilities. Dribbble's services marketplace continued to show momentum with continued growth in its GMV. We expect the marketplace to drive growth going forward through additional transaction fees, designer advertising, and subscriptions. Our digital services segment continued to benefit from its market-leading position throughout 25, completing landmark work for Fortune 500 and leading AI companies. Looking ahead and across the portfolio, We are seeing opportunities to create new revenue streams by leveraging our large sets of proprietary data. Serato was transformational for our recurring revenue profile in 2025, leading to a 50% increase year over year. As a company, we will continue to focus on both organic and acquisition-related opportunities to enhance this recurring revenue base. I'm going to turn it over to our CFO, Mike McKenna.

Okay. Thank you, Jordan. I'll start by providing an overview of performance around adjusted EBITDA and our adjusted EBITDA margin. For the year end 2025, adjusted EBITDA came in at 37.9 million. This is a strong 22% improvement over fiscal year 2024 adjusted EBITDA of 31 million. This reflects real operational progress across the business supported by the strong top line growth. The margin story is equally strong. We expanded from 16% in fiscal year 2024 to 19% in fiscal year 2025. And that improvement has been consistent and sustainable across the quarters of the year. There are two very key drivers here. One being the Serato acquisition contributing meaningfully to our earnings profile. The discipline cost management across the entire portfolio continues to enhance margin. Q4. 2025 adjusted EBITDA of $9.8 million held steady, demonstrating the durability of our earnings power heading into 2026. Moving on to slide eight. This will provide an overview of free cash flow and adjusted free cash flow post debt servicing. For the year end 2025, Free cash flow of 25.3 million represents a 171% increase over 2024. This is the clear signal how much stronger the business has become. While Q4 was softer at 1.3 million driven by working capital timing and the semi-annual interest payments on our convertible ventures, this is expected and not a structural concern. Free cash flow calculation is conservative and transparent. It includes licensing income, but excludes the gain on the sale of WeWork remotely. Prioritizing debt repayment with this cash flow is positioning us well for future capital allocation opportunities. These include acquisitions, buybacks, and other means of which we could deploy capital across the portfolio. With that, I'll turn it back to Jordan. Talk about Tiny Fund 1.

Thanks, Mike. Our Tiny Fund companies performed well in 2025, with NAB increasing 17% from 24. This was mainly driven by NAB increases at Letterboxd and Metina and really shows that Letterboxd continued its growth trajectory, both growing revenue through advertising, partnerships, and overall user growth. They reached over 26 million users by the end of the 2025 quarter. Aeropress also expanded its product range with the release of its manual grinder in Q4-25 and the Aeropress all-metal steel version in Q1 of 26. You'll recall that earlier this year, we increased our LP interest in the fund through purchases at a discount to NAV. And we remain excited about the performance and opportunities that the fund represents for tiny overall. We'll pass it over to Mike to talk about our debt and cash position.

Thank you, Jordan. In a year-over-year comparison, our senior debt has come down meaningfully. From $116.9 million at the end of 2024, to 98.7 million at the end of 2025. That's roughly $18 million of debt retired during the year. Our net debt to adjusted EBITDA ratio of 2.4 sits within our target range of 2 to 2.5 times. And the trend line shows a consistent, deliberate deleveraging story. Even when factoring in, financing for the Serato acquisition. This did cause a temporary uptick in leverage in Q2 of 2025. However, we absorbed that and continued the downward trajectory, which speaks to the quality of the transaction. Total cash on hand grew to $29.3 million from $22.9 million, again in a year over year comparison. We're building a stronger liquidity position while paying down debt simultaneously. Going forward, we remain committed to staying within our target leverage range while preserving enough flexibility to act on attractive acquisition opportunities when they arise. With that, I'll turn it back to Jordan for the remainder of the results review.

Thanks, Mike. In 25, we really made meaningful progress in increasing profitability and actually believe there's further opportunities through growth, productivity and efficiency gains through AI and continued cost discipline. We will continue to focus on responsibly managing our leverage and have been very public about our target range of two to two and a half times net debt to EBITDA. We're also continuing to work through our refinancing options, as we look to renew our existing facilities. Finally, we were able to repurchase 134,000 shares of Tiny, totaling just over $1 million, and we remain focused on disciplined capital allocation across the company. I wanted to say thank you again to our team for an incredible year, and we look forward to another great 2026. Thanks, everyone. I'll open up the line for questions.

Thank you very much. To ask a question, please press star followed by 1 on your telephone keypad now. To remove yourself from the question queue, please press star followed by 2. I will pause for any questions to come through. We currently have no questions at this time. I'd like to hand back to Jordan for any final words.

All good on my end. Thank you, Robin, for joining this morning, and we'll talk again soon. Take care, everyone.

This concludes today's call. We thank everyone for joining. You may now disconnect your lines.