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.