IC Group Holdings Inc.

Thank you so much for joining us. and John Penhale, CFO, who will be presenting from the company side. The format for the presentation is they are going to do an overview of IC Group just for those who are new to the story, and then they'll focus in on the Q2 results. And then we're going to jump into Q&A. We're going to try and keep it structured. So we'll deal with general company Q&A first and then get into the quarterly Q&A second. So if you have any questions, feel free to input them in the Q&A box at the bottom. And I will remind everyone that this presentation does contain forward-looking statements. If you'd like to know more about those, you can find them on the company's presentation on their website. and you all didn't come here to listen to me. So I will turn it over to Duncan and John. Thanks for joining us today.

Right. Thanks so much, Deborah. Welcome, everyone, and thank you for joining us. I also wanted to welcome the Adelaide team, Deborah and Alanka. I'm really excited to work with you, starting in August, as we announced, and over the coming quarters and years. So just a little background. Duncan McCready, CEO and director of IC Group. And as Deb mentioned, we're joined by John Penhill, our CFO. So today we'll walk through IC Group second quarter results for the three and six month periods ended in June. We'll cover off our performance in the quarter, kind of what changed and how we're positioned going forward in the back half of 26. You know, just Before we get into the results, I really wanted to spend a minute on who we are and how we think about the business. As a business, we're really focused on building a technology-led consumer engagement company, which ultimately helps brands, sports teams, leagues, and live events connect with consumers in ways that really convert their audiences into customers and ultimately customers into fans. And we do that through a combination of digital engagement, mobile communications and risk management solutions. So whether a client's looking to attract new customers, sell more products, capture first party data, which is critically important, run a promotion, communicate at scale or manage risk, Our value proposition is that we really simplify those complexities and deliver measurable results reliably and at scale. Looking at the trailing 12 months, IC Group generated 30.4 million in revenue with approximately 68% recurring revenue, which really speaks volumes about our product market fit, the trust of our customers and our network growth. Revenue came from three complimentary capabilities and revenue streams. IC Engage contributed $13.9 million through promotions, loyalty, and fan engagement. IC Mobile contributed $14 million through enterprise messaging. And our insurance division, IC Insurance, contributed $2.5 million by supporting sports, entertainment, live events, and brand sponsorship programs with specialty risk management. We've worked really hard to gain the trust of our Fortune 500 customers, deliver solutions in more than 30 different countries, supported more than 100 teams across North America and Europe, and we power over 2 billion consumer engagements annually. When you take this all together, it really demonstrates IC Group has scale. We have credibility and we have a revenue base that reoccurs, which gives us a platform with multiple paths for growth and expanding operating leverage as we scale. I'd like to introduce now John Penhale, our CFO to discuss the next slide.

Thanks, Duncan. I'll review our overall company results and I'll also give a bit of an overview on the segments and then turn it back to Duncan. IC Group reported Q2 results that evidence strong year-over-year growth with revenues and adjusted EBITDA up 26% and 345% respectively. Versus our first quarter of 2026, revenues were higher by 5% and adjusted EBITDA was virtually the same at 672,000, although its makeup by segment was different, which I will discuss. Q2 margin was 42% down 1% from Q1 and consistent with the trajectory of this metric, excuse me, over the last few quarters. This is a result of the higher growth rate of our mobile segment versus Engage and insurance. The mobile segment being a low margin business running over a highly fixed operating expense base. Across our product lines, we calculate the quarter's annual recurring revenue to be 67%. This is a metric we measure and are focused on improving as management strives to deliver predictable and growing earnings. Looking at our balance sheet and liquidity, the company had $2.3 million of cash at the end of the quarter and $8.5 million of long-term debt. The company's long-term debt will amortize down to $7.7 million by year end or approximately three times our run rate adjusted EBITDA. As I mentioned, the makeup of our Q2 earnings, while consistent with the prior quarter, was constructed differently, benefiting from the diversification of our product lines. For the IC Engage segment, Q2 revenues were 12% higher than the prior year, however lower than Q1 by 10%. This was expected as annual planning cycles with our clients do experience some seasonality. Despite the quarter over quarter sales decrease, segment adjusted EBITDA of 1.1 million was consistent with the prior quarter and 385% higher than the prior year. The consistency of the EBITDA versus the prior quarter was a result of realizing slightly improved margins on our core programs and being able to deploy our technology resources against project requirements of a broadening client base. For the IC Mobile segment, Q2 revenues approximately 25% higher than the prior year and were 10% higher than Q1. However, gross profit decreased approximately 225,000 from Q1 to a margin of 9.6%. This was expected and a result of some temporary margin compression from carrier price increases that could not immediately be passed through to our customers under certain of our legacy contracts and additional short-term costs that we've been incurring for the investment in our core operating system. This operating system investment is anticipated to be completed by the end of Q3 after which the benefits of lower operating costs and the ability to offer new messaging formats to our customers can start to be realized. For the insurance segment, this is where the benefits of having diversification of our product lines was realized. Versus the prior year, quarterly revenues were higher by $538,000 of which $263,000 was growth of recurring underwriting, a mix of organic growth and growth from new underwriting authorities and our Q4-25 acquisition of the Players Health business line. Additionally, the segment has the ability to realize what we refer to as a profit commission or a bonus on achieving loss experience targets agreed with our syndicates. Revenue associated with this income was $275,000 in the quarter. This revenue is considered contingent income for accounting purposes and is recorded once the syndicates have confirmed it. The prior year's profit commission of $70,000 was recorded in Q4. This growth and the larger profit commission resulted in $228,000 of EBITDA for the segment versus negative $52,000 in the prior year quarter. and with that, Duncan, I'll turn it back to you.

Great. Thanks very much, John. I just now want to cover off some of the different segments. IC Engage, as you know, is a proven scalable engagement engine. It's got deep penetration across both enterprise brands and professional sports. At the end of the day, we help our clients run always on digital engagement, whether it be promotions, incentives, fan experiences, ultimately that directly drive commerce, first party data ownership and loyalty. Our customer roster really reflects the trust we built to execute at scale across markets, regulatory regimes and operating environments where there's no room for failure. And we remain an ISO 2701 certified as an enterprise ready provider for our customers. Importantly, this business is not a project-based one and done business. It's built around long-term client relationships and repeat program deployment, which gives us strong revenue visibility and room to expand. I'd also like to point to the partnership we announced in July. It's an exclusive three-year agreement with a leading global provider of venue technology used across community, educational and sports venues. It became effective as of June 19th. Our fan engagement solutions are distributed through their technology. So as venues adopt their platform, ours can be deployed alongside it. To be clear on the economics, there are no minimum revenue commitments. This is a distribution channel, not a contracted revenue stream. So why is this partnership, why does it matter to us? It extends the same platform we run for major brands and professional sports teams into education, recreation facilities, community venues, and local sports organizations across North America, which is a large fragmented market that has never had access to these tools. It helps us simplify our product solutions and broadens our reach beyond the professional leagues, giving brands and sponsors a way to run campaigns across many venues through one platform. And it creates a low cost path to new audiences without us having to build our distribution. IC Engage had another strong quarter and continues to be a primary growth driver for the company, as John discussed. Our revenue increased 12%, Gross profit increased 23%. We had a gross margin expanding to 75% from 65% from the previous year. This really reflects better utilization of our technology, our team and lower third party fulfillment costs. Operating income grew 240% year over year. Our trailing 12 months, I see engaged generated 13.9 million. in revenue and 9.5 million in gross profit, roughly at 69% margin. Looking ahead, our near-term focus is growing the live network across teams, venues, and enterprise partners in North America and Europe, expanding our sales funnel to win new customers, logos, brands, sports teams, and live events, and increasing platform utilization to monetize brand activations and data across live networks. We're hyper-focused on working with our new venue partner to grow and monetize the network in community, educational and recreational venues across North America. IC Mobile is our second segment. It's our core communication channel for large scale customer engagement and commerce. IC Mobile, as you may know, is only one of three tier one aggregators in Canada with direct carrier connections. What's really important is we're a Canadian owned platform that is fully hosted and we process all our transactions in Canada. Why that matters is because data residency and more importantly, data sovereignty through Canadian ownership is becoming more important for regulated Canadian industries, government related use cases and enterprise customers that need assurance that sensitive communication data remains within Canada. The platform delivers over a billion mission critical messages annually across security, transactional and marketing use cases, generating recurring per message revenue. In April, we announced a new messaging enterprise agreement, which will increase platform throughput and recurring revenue. Our strategy has always been to secure high volume SMS traffic to build our scale, then expand into higher margin messaging solutions over time. And industry trends like RCA adoption and richer messaging capabilities are expanding our addressable market. We are now enabled for Google RCS, Apple Business Messaging in Canada and toll-free messaging. And we're transitioning our messaging gateway to a new platform designed to support this traffic growth, diversify our capabilities and prove our operating efficiencies. I see mobile continued to scale on the quarter. It's driven by higher enterprise and wholesale messaging traffic. Revenue grew 25% year over year and that was fully organic. It grew to 3.9 million. Gross profit was 0.38 million with a gross margin at 10% as John noted. Importantly, more than 95% of IC Mobile's revenue remains recurring. During after the quarter, we implemented customer pricing adjustments and advancement of our platform migration, which we will expect better aligned carrier cost and customer pricing, and also improve efficiencies over time. Over the trailing 12 months, IC Mobile generated approximately 15.4 million in revenue, and 2.4 million in gross profit at a gross margin of 16%. Our near term focus is completing that gateway migration to improve operating efficiency, enable new messaging channels, improving our margin profile through customer pricing alignment and improving those operational efficiencies. And finally, pursuing new business expansion opportunities with increasing interest in data sovereignty and residency requirements. Our last segment, IC Insurance, really runs out our platform. If you think about Engage and you think about Mob Mobile, where we create and we deliver the consumer moments, insurance is really about allowing it to happen for the show to go on. It's event cancellation, it's crisis management, liability, prize promotion. These are all insurance solutions behind live events, behind promotions and behind sponsored programs. that really help customers manage that financial risk. It's a niche most carriers don't touch because the underwriting is complex, the regulation is tight, and pricing depends on experience rather than volume. That experience is a real barrier to entry for our competitors. You can't buy your way into this market. As a Lloyds-backed MGA with binding authority across multiple jurisdictions, over 60, We don't carry the risk ourselves. It's not on our balance sheet. We underwrite on behalf of others and earn fees for doing it so we can grow without tying up our capital. In March, we continue to expand our authority through London specialty markets, deepening our insurance solutions to help improve reoccurring revenue in the live sports and entertainment space. Insurance, as John noted, delivered a strong quarter. Revenue is up 147% year over year in the quarter to approximately 0.9 million and gross profit increased 119%. Gross margin was about 62% in the quarter. The segment generated operating income of 0.13 million compared to a loss in Q2 of 25. Over the trailing 12 months, IC Insurance generated 2.5 million in revenue and 1.6 million in gross profit at a 64% gross profit margin. In the near term, we're focused on continuing to expand our product suite across the sports, entertainment, and live event venue, increasing recurring revenue through our new product offerings through annualized policies, and growing our distribution networks locally and internationally through our delegated authority framework. This slide gives you a quick look at our capital structure. Ownership remains tightly held with directors, officers and executives holding 53% of the shares outstanding, which we believe speaks to our alignment with our shareholders. Our market capitalization is approximately $17.3 million, which works out to roughly 0.86 times trailing 12-month revenue, less than one-time revenue despite our organic growth and our improving profitability. We ended the period with $2.3 million in cash and approximately $8.5 million in debt. Our roadmap runs in three phases. If we reflect on 2024 and 2025, it was about building the platform. It was about three acquisitions, renewing Fortune 50 anchor customer, building 100 plus teams and live event operators, sending over a billion messages. It was really about driving that organic growth. Revenue was up 50%. to almost 27 million and we had about 68% recurring revenue. 2026 is really about continuing to scale organically. First organic, we have a strong organic growth engine. As I mentioned before, Q2 revenue was up 26% year over year and almost 97% of that was organic. This came across from all of our segments, not just one. Second, we're really focused on scaling mobile more efficiently. Working hard to improve our operational efficiency, we recently brought in Bullet Messaging as a new messaging gateway partner. Third, leverage is starting to showing up across the business. We've seen consistent adjusted EBITDA results across three quarters now. And finally, we've started to introduce new solutions, open new channels and broaden our customer reach. For 2027 and beyond, the focus shifts to margin and optionality. We'll see more margin recovery as price actions take effect and some of the efficiency things we're working on in mobile take effect and become annualized. Our platform, we're really focused on monetizing that across our live event network, focusing in on data and brand activations. will be working hard to scale the new venue network partnership that we have into meaningful revenue growth. And we'll continue to be disciplined on our capital allocation with our bank debt down 1.5 million year over year. Our base case is that we'll continue on our organic growth, but that doesn't rule out any accretive acquisitions that we may look at. I'd like to just spend a moment talking about what makes IC Group different and defensible. From our perspective, there are four positions here that a competitor simply can't buy. First, global delivery. We deliver solutions in 30 plus countries, which is built on 30 years of delivery experience, being ISO 2701 certified, having deep regulatory expertise across all these different jurisdictions, supplier relations that make it happen locally. You can't just buy that. Second, our installed footprint in live events. We have more than a hundred teams and live event operators across major and minor leagues in North America and Europe. You can't operate in this complex pressure cooking environment if you're not trusted and you're not really good at what you do. Third, Carrier Access. We're one of three tier one Canadian mobile aggregators. We are the only one that can provide 100% Canadian data residency and Canadian sovereignty, which is the only compliant route for regulated industries in Canada. And fourth, Underwriting. We're Lloyd's MGA. We've got a really specialized niche and we have global binding authority. this is a license that is held by very few. So when you look at each of these, it took years and in some cases regulatory approvals to build and that's exactly why our reoccurring revenue occurs and that's why our value is so different from our competitors. I'd like to close this presentation on six numbers that really sum up the investment case for IC Group. First is our strong organic growth. This is a platform we own today and it's performing well and will continue to do so. Second, recurring revenue is across all our business segments, which gives us really good visibility and predictability, even during cyclical periods. Third, alignment. All of our directors, officers, and executives are fully invested alongside our shareholders. Fourth, our operating leverage. We're making great progress. We've had three consecutive consistent quarters around 6.7 million. And we've had stepped performance increase over 2025. Fifth, we have three ways to earn from every customer. We create, we deliver, and we protect. One relationship, we have three revenue lines. And the sixth and final number is evaluation. We trade at roughly 0.86 times trailing revenue. below one times revenue against that organic growth and that improving profitability that we are showing. Put simply, we believe this is a diversified consumer engagement company with strong recurring revenue and a scarce market position, which is priced well below one times revenue. Thank you for joining us today and for your continued interest in IC Group. We appreciate the time you've taken to review our Q2 results and to learn more about our platform and our priorities going forward. As I've mentioned, we remain very focused and disciplined on our execution, improving our revenue quality and building that long-term value for our shareholders and scaling this business. If you have any questions, let's please open the floor.

Well, thanks so much, Duncan and John, for the presentation. We're going to get into the Q&A now. So you work with a large number of enterprise and Fortune 500 customers. What makes those relationships particularly sticky, and what typically leads a customer to expand its relationship with IC Group over time?

Thank you, great question. I guess if I kind of reflect on our enterprise relationships, one is we, it's not a single kind of point of solution. We're, like if I look at our customers, we're deeply integrated with many of our customers. And whether it be in our consumer engagement side and our messaging side, these are workflows that we've been, and customers we've been working with for many years. When I look at why these customers work with us, it really comes down to trust, reliability, security, and execution. These are all things that we do really well, and we do that in often very complex operating environments. So at the end of the day, we have the backs of our customers, and they know we deliver at scale always. and I guess if we look at expansion, we look at these customers often each of our business segments has been serving these customers kind of with one solution set. Now that we have three different business segments, we can start to provide those different segments and the solution sets associated with that segment into each of our customers. We have over 150 customers in different jurisdictions, and it's a great opportunity for us.

Got it. Thank you. Now, looking across IC Group's capabilities, how integrated are IC Engage, IC Mobile, and IC Insurance today? And where do you see the biggest opportunities to cross-sell across the existing customer base?

Great question. I think if I look at kind of integration today from a customer perspective, each of the different businesses still continues to build and grow their customer base, and we have specialized expertise in each. As I mentioned a few seconds ago, we have over 150 customers across these three different segments. So we really have a meaningful opportunity to introduce the broader solution sets into those customers over time. It will take time. It won't happen overnight. but we're already doing that. We've got a number of use cases. The one example I can point to, we do a lot of work with Hockey Canada. They utilize our live event platform. They also utilize some of our insurance solutions. We're working with a lottery. They utilize our promotion solutions, they utilize our insurance solutions, and they also utilize our messaging solutions now. So cross-selling is starting to happen, which is really exciting for us. This is a really big opportunity. We're not kind of assuming, I guess we're not assuming that every customer will use every solution, but we do know when we look at our customer bases, they have the capability and they have the need to use each of the solutions that we offer to our different segments. So the opportunity is big and that's kind of where we're focused over the coming periods.

That's great to hear. Thank you for the response, Duncan. Now, taking a broader view of the company, where do you see the greatest opportunities to create long-term value and how do you think about prioritizing investment across the platform?

I think if I look across the business, it's really about scaling the profitability of the platform across all three businesses. while continuing to bring those capabilities closer together and coordinated in ways that are simpler for our customers so that they can start to access those different capabilities. And that's a huge opportunity for us. The business will continue to grow independently, but if we can combine those strengths, I think we're unique and different in the world and it really creates some good opportunity for us. Growing recurring revenue, selling is a big piece of what we're focused in on. Obviously, our live event network and our relationships, our partner relationships, which we just formed, are key opportunities for us for some significant growth. Monetizing both brand activations across the network as well as data. Those are kind of big opportunities we see. I think we're on the mobile side, we're really focused in on improving operational efficiencies, which will have significant impact to the bottom line and moving traffic to more you know, continuing to scale the traffic, but also moving in a different mix of traffic. So you're getting some higher take rates, both on revenue and margin. So those are kind of some of the areas that we're focused in on. Investment wise, you know, it's really about organic growth right now, but if we do see opportunities in acquisitions that are creative, we'll certainly look at it. And if it makes sense, you know, we'll push forward.

Got it, thank you. And are there any meaningful seasonal patterns across the different revenue streams that investors should keep in mind when comparing the quarter to quarter results?

John, do you want to take that one?

Sure, happy to. There certainly are, Olenka. If I look at our two largest segments, Engage, we work very closely with our clients on their annual marketing plans. Those plans are generally scheduled with the overall budgeting cycle for our clients. So there is a bit of seasonality in when our statements of work and new mandates get approved and finalized. And you saw a little bit of that in our Q2 results where with one of our core accounts. We were finishing up a mandate for them. The work that we had spent in doing that during the quarter was a little less than other quarters, but we did release a press release shortly after the quarter end that that our mandate had been renewed as expected and that kind of ramps up towards the next year's plans. So there's a little bit of seasonality that way. I think as we broaden our client base, that will subside. On the mobile, you can look at traffic volumes and you will see recurring patterns where, you know, mostly tied to consumer spending. So there's seasons around the traditional holiday spending season. and so on. So, you know, the way I think about it is there are things to keep in mind when I'm doing my forecasting. It's not anything that I would consider to be peaks and valleys.

Perfect. Thank you, John. And there's one last question for me before I pass it to Deborah. Can you speak to the 5.2 term loan maturing on November 30th and how it's being addressed?

I can take that, Duncan, if you'd like. Yeah, so the term loan, it has an interest rate maturity in November. We've had that loan, we locked it in at a three-year fixed rate when we took that on. That loan was taken out when we acquired the mobile business. So we bought that business at the end of 23 for $7.5 million and it was financed. entirely with debt ahead of our going public transaction. We are, as noted in our financial statements, we've been offside our financial covenants, but as I reviewed and alluded to in my presentation, the companies, if you look at what has happened since we took on that loan, we've managed down from 7.5 million to 5.2 million on the principal. are long-term debt outstanding if I take it in entirety with the Fanex debentures that we took on when we acquired that business will be in the $7.7M range. Our run rate EBITDA is in the $2.5M range and I look at that as being our floor that we're building off of right now. We are not across any of our segments wanting or needing to add anything in the way of a significant technology investment. Once we get through our mobile transition that I spoke about, which should be done the end of Q3, we've really set the profitability table to unlock and many more. our run rate EBITDA at about three times or sorry, if our long term debt at the end of the year is three times our run rate EBITDA, we continue to amortize that debt down and we continue to grow our profitability. We should very shortly, you know, sometime next year be in a position where we can just slow down the amortization of our debt because we can support and so on. So we're looking at the debt level that we would be at and then that would improve our overall cash flow position and our financing would look a little bit less deleveraged. But as I see it right now, given that we don't have to invest really further in the management team or our technology platform, we're growing our base of earnings that we've proven over the last three quarters to be fairly consistent. we're just going to grow our way into a position and you'll see that the debt situation is just very manageable.

Thank you. Just to add to that, I think that renewal is in process. We've had really good discussions with our senior lender and we're in a good position to renew that when it comes up at the end of the fall here.

and I guess that relates to one question that I had arranged to ask. I understand growing the business and your debt to EBITDA or debt to revenue will come down naturally. Will you continue to use cash flow to pay down debt? I think you've been pretty aggressive over the past year in debt reduction.

John, do you want to take that?

You know, I would say It is to be determined. Certainly in the near term, Debra, paying down the debt is a priority. In order to unlock some shareholder value here, we've got to get ourselves to a balance sheet that is more conventionally leveraged. We've got a plan for that. We have had a plan. We're executing on it. A little bit more execution and we'll be there. After that, the focus right now, and I think Duncan would agree, is on organic growth. We've got great opportunities within each of our segments to grow them individually. and as Duncan spoke to, we've also got opportunities to present value add programs to our clients where they are engaging with us across two or three of our business segments. And that for us is a way to if we can grow in that fashion. And we've been experimenting with it. We've had some initial success. If we can gain a bit more traction on that, that's how we feel that the business valuation can be what you would consider premium, where the valuation of the company is greater than the sum of its individual parts. So we're quite excited for the opportunities to grow each of the segments individually. We've also got Exciting plans to grow them together and to add value to our clients by bringing them new ideas, new opportunities and just increase the stickiness overall of our client relationships. That's the focus. We will selectively and I think we'd be in a better position once we've got a balance sheet shortly that's more conventionally leveraged. will be in a position where I think that'll be reflected in our share price. And the share price being a little bit higher would give us a better currency to make some acquisitions. We do take a look at acquisitions as opportunities come to us. We're not hunting for anything in particular. And we've made acquisitions in the past. We've had good success integrating mobile. We've had good success integrating our Phanax acquisition. will continue to do it. We think it's a strength of ours, but the focus I'd say majority wise is on organic growth. I don't know, Duncan, if you want to add anything to that.

Yeah, no, I totally agree. I think it's our focus is absolutely on organic growth and that's demonstrated, continues to be demonstrated through the work we're doing in each of the different divisions and our We've got a really strong team and they're really good at operationalizing and growing the businesses. So that's where the focus is. And as John mentioned, if there's opportunity that comes up that's creative and it makes sense, I will certainly take a look at it. Deborah.

I'm not sure if Deb's having Wi-Fi issues, so I'll just take over for now. So looking at the revenue, so recurring revenue represented 67% of Q2 revenue. Can you address what were the key drivers of the recurring revenue today? And what opportunities do you see to increase the recurring component of the business over time?

Great question. Kind of how we look at the business. I see mobile. would be the highest percentage of recurring revenue. They drive over 95% of their revenue is reoccurring. That base just continues to grow naturally with the volumes that grow in messaging. We get on an annualized basis, probably growth somewhere between four and 7%, just a natural volume growth because of more utilization and many more. We have a lot of messaging communications. Under our IC Engage segment, we see 50% even higher of our recurring revenue in that space. As our live network continues to expand and grow, that will also increase as we focus in on brand activations and commercializing data. I think the other interesting piece right now, we probably, like if we look at the insurance space, that segment, their reoccurring revenue last year was probably around 10%. they're making some significant strides in introducing new products that are annual renewals, which is really exciting because they're making some great traction there. So that'll help to improve. Overall, we're really focused on moving that number from 68% to something that's higher. And we think we've got the right segments to do that. That will increase naturally as the mix between messaging revenue goes up over some of the other segments. Okay.

Got it, thank you. And here's another question. So adjusted EBITDA increased 345% year over year in Q2, significantly outpacing revenue growth. What is driving that operating leverage and how sustainable is this level of margin improvement as the business continues to scale?

I'm going to push that one over to John. I guess my comment was that, you know, obviously year over year was fantastic. That's not something I don't think we can sustain on an annualized basis, but we'll certainly get some improvements, but I'll pass it over to John to have him add comments to that.

Sure, thanks, Duncan. Yeah, obviously, 345% growth in our EBITDA is more a function of the base we were measuring that against a year ago. I don't look at a year ago as kind We've done that while we've been making significant investments in the Fanex business after we after we acquired it and raised funds to invest in it. And that unlocked the opportunity that they press released in their partnership earlier in the year. We have more recently been investing in the mobile business. I spoke earlier to a bit of compression in the earnings this quarter. We think that's transitional. And on the other side of Q3 when that investment period is over, we will unlock some cost savings. and some new revenue opportunities will be available to us and our clients. So the pace of growth will increase. The way I look at it across our business lines, we will continue to get positive operating leverage in that adjusted EBITDA will grow faster than our rate of revenue growth. in our two largest segments, which are the ones that drive most of those metrics for the company. In Engage, we've traditionally run 65% margin. We posted 70% margin. This quarter, that should continue. That's the nature of that business. But it does have, it's where the highest concentration of our employee base is. We've got a much higher semi-variable cost in our operating expense category for that business. So The business does run at traditionally a little bit of a higher margin, but that business will continue to scale for the foreseeable future with EBITDA growing faster or at a higher rate than revenue. The mobile business is quite different. We record the revenue we bill our clients for their messaging traffic and 80% of that is traditionally chewed up by our system costs and for the most part the carrier fees that we pay to the likes of Bell, Telus, Rogers, etc. it's a it's a high fixed cost or variable cost business. So the margin will continue to be low. We only did 10 percent this quarter. And as I mentioned, that was largely because of some transitional items. I see that business getting back to the 20 percent level The business runs on a very small human resource footprint, if I can use that terminology. The semi-variable costs in that business are very low. So on the other side of this transition, we will have a largely fixed cost platform, state-of-the-art system. and contracts that guarantee us pretty much a locked in margin. So I would see that business continuing to grow at a pace where our EBITDA growth, the rate of growth will outpace our revenue growth. The business kind of skews sometimes, our P&L, because of the way we account for it. But at the end of the day, as it grows, even though the margin is lower, it's all cash and earnings to us. And so there's a mix in there that you need to understand. Looking at our margin, our EBITDA holistically in the business, you need to get a little deeper in the numbers to really understand the components of where it comes from, because the different the businesses are. are different. But as I said, I think the profitability platform for the three segments and as a whole across the organization is set. We're not wanting for any big investments in any one of the segments. And so the potential for our future revenue growth to fall to the bottom line and for the benefit of the shareholders is tremendous.

Perfect. Thank you, John. The next question is, as the company scales, which part of the cost base offers the greatest operating leverage and where will continued growth require incremental investment?

John, do you want to tackle that one?

Yeah, I think it's similar to the topics we've been discussing. So I think I would just reiterate that I think, you know, across our three divisions, we do have opportunities to invest in them, but, you know, The Engage division has a constant, being a technology-driven division, it has a constant need to invest in our technology. You always have to budget for an amount of spend there, but our history is that we've been able to keep our technology current. Thank you very much. that we intended to make are largely behind us. We're now in the fine tuning stage and focused on leveraging that investment. In the mobile business, as I've mentioned, we will have at the end of Q3 a state-of-the-art system that we have an ownership stake in. So we're in the driver's seat in that business. We've got opportunities to grow by attracting new clients to our platform. We also have new messaging formats that our clients, new or existing, can take advantage of on the other side of this transition that will further enhance our abilities to grow.

Perfect. Thank you, John. I'm not sure if you want to quickly cover Outlook for the rest of 2026 before we wrap up?

Yeah, sure. I'll give a quick kind of view of, you know, where we see, you know, I'm really proud of the progress that we've made as a team, as a business. We've got really strong customers. You don't get to work with enterprise, you know, Fortune 50, Fortune 100, you know, professional sports teams in venues where there's 40,000, 50,000 people in the stadium playing. You don't do that if you don't have the depth of experience, the capability to simplify and the experience to operate in those intense environments. So I'm proud of our team. I'm proud of our progress. The progress will continue. Will we have some ups and downs? Absolutely. But I can tell you that we've got a really strong team with a great track record. who are really aligned and focused on our growth over each of our different business segments. So if I look forward, we're working hard to improve our operational efficiencies in mobile, which John spoke of, which will have a real impact on the business as a whole moving forward. So the end of the back half of the year is looking good and we'll continue with the progress that we're making and that with our reoccurring revenue and our deep customer relationships will carry on into 2027.

Well, thank you so much, Duncan and John, for your time today and congratulations on the strong results. Is there anything else you'd like to cover? I think we pretty much touched on everything.

Nothing from me. Thank you.

No, thank you, Olenka. Thank you, Deborah.

Of course. If anyone has any additional questions, please email me or Deborah. My email is olenka.cap.ca. Deb's email is in the news releases. And again, thank you so much to everyone who joined today. We hope you have a great day.

Thanks so much. Bye now.