NowVertical Group Inc.

Thank you for joining us. and on the CDAR website www.cdar.com. All figures discussed on today's call are our newest dollars and will be on an IFRS basis unless otherwise noted and will refer to the specific non-IFRS measures including but not limited to adjusted EBITDA, adjusted EBITDA percentage and net debt to trailing 12 months adjusted EBITDA. Please refer to the cautionary note in the presentation and to the non-IFRS and other financial measures section of the MD&A for more detail. Today's presentation will be led by Andre Garber, the company's interim chief executive officer, who is also joined by Philip Jones, the company's chief financial officer. We'll break for questions at the end of management's formal remarks. During the question and answer session, we'll take questions from analysts over the Zoom audio and all other questions from our listeners through the webinar portal Q&A chat box. will remind analysts to use the raise your hand feature within the portal to ask a question. Once again, thank you for joining us today. And I'll now turn the call over to Andre to begin the presentation.

Well, thank you very much, Stefan. And good morning, everyone. And thank you for joining now Vertical's second quarter 2026 call. I'm Andre Garber, Interim Chief Executive Officer, and I'm joined by Phil Jones, our Chief Financial Officer. I want to start with the management update. During the quarter, the board made a change of chief executive officer. And as a co-founder of this business, I stepped in as interim CEO, and the board is conducting a search for a permanent CEO. But I want to be clear about what interim means here. I'm not a caretaker, and I'm operating this business every day with full accountability for the results we're reporting today and going forward. An important thing I can tell you about Now Vertical today is that our global team is here. Our key leaders are all with a business, including co-founders who sold their companies into Now Vertical and rolled their equity in, and they are integral to how we operate, and we are integrating the business more deeply together, rowing in the same direction. The results you hear on this call belong to that team. Sandeep Mendiratta, Santiago Trógolo, Pankaj Ghag Christine built our financial reporting engine and the team behind it and was instrumental in strengthening our balance sheet. Christine, we are deeply grateful and we wish you every success and well-deserved time with your family. And taking over as CFO is Phil Jones. Phil is a CPA with more than 20 years of CFO experience across public and private companies. And he has been inside Now Vertical since June as an advisor to management. So this is anticipated and a transition that has been smooth. So you'll hear from Phil shortly on the financials. But for those newer to the story, Now Vertical makes enterprise AI work. Thank you so much for having me. Sandeep Mendiratta and you cannot deploy AI on top of that. And that is exactly the problem we solve. Our specialty is setting the correct data foundations across all the systems and all the data flows in your business. It's the groundwork for the measurable outcomes. And the way we work, we start small, we prove fast, we prove our value fast and we grow with the client. Many of the logos on the slide started as small engagements and are now multimillion dollar lifetime relationships. and we have more than 30 of these accounts with lifetime values above $5 million. And in terms of the shape of our business, 89% of our revenue is core data and analytics solutions and services. Our people, our methodologies, our delivery is in this bucket. 11% is reselling third-party technology. So almost 90% of our revenue is what we build and deliver ourselves and that share has been rising. Pankaj Ghag 85% of this quarter's revenue came from our top 30 accounts and 92% came from clients who have been with us for more than a year. So it's not really a business of small, short contracts. It's a business of enduring client relationships that expand over time. And with this, let me pass it over to Phil to give an update.

Thank you, Andre. It has been great joining Now Vertical as the Chief Financial Officer. Earlier this year, I had announced my retirement on LinkedIn, but with the caveat of keeping my options open if I was presented with a great opportunity to work with a great team. Having decades of experience as a senior finance leader in both public and private companies at various stages of growth and evolution, I see the potential in what the team at Now Vertical is building, and I wanted to bring my skills and experience to the table to be part of the Now Vertical story and to help unlock the values in this business. I'm looking forward to connecting with our investors and partners over the coming months. But for now, let me walk you through the key financial highlights of the second quarter of 2026. Revenue for the second quarter of 2026 was $9.7 million, an increase of $1.5 million or 18% from the $8.2 million recorded in Q2 of last year. For the six months ended June 30, 2026, revenue was $19.4 million, up 4% year over year from last year. The first half of 2025 had included an exceptionally strong first quarter. So achieving year over year growth for the first half of 2026 over 2025 is meaningful to the company and highlights the momentum we're achieving. Looking at the revenue breakdown for the second quarter of 2026 and comparing it to the first quarter of 2026, we note the key drivers of revenue growth. Core Data Analytics Solutions and Services grew $600,000 or 7% from the prior quarter and 13% from the same quarter in the prior year. Data Analytics Solutions is also the highest gross margin product or service provided by NowVertical. We also achieved growth in revenue derived from our top 30 accounts as the company continues to nurture long-term revenue Sticky relationships with his clients, leading to and driving repeatable revenue. With respect to reselling revenue, we experienced a quarter-over-quarter decline of $600,000, but a doubling of the revenue achieved in the same quarter in 2025. Reselling revenue tends to be quite lumpy, as the revenue recognition rules of IFRS require all revenue and costs associated with a reselling contract to be recognized for the entire term of the contract upon signing. Reselling Revenue is also a lower margin product, so the change in revenue mix in the current quarter versus prior periods is also a positive contributor of the overall margin increase realized in Q2 2026. One of the revenue source channels for both data analytics solutions and reselling revenue is the Google Cloud Platform, which drove $2.5 million in revenue, up about 10% sequentially, and up 77% from the prior year. Just to clarify, Google Cloud-related revenue is included within our two revenue streams and it's not an additional revenue but merely a source channel of driving the revenue of the company. Gross margin was 50% in Q2, 2026 up from 47% in the same period last year as a result of both change in the product mix but also reflecting delivery efficiency and pricing discipline throughout the company. Adjusted EBITDA for the quarter was $1.5 million, up 41% year over year, and achieving an overall EBITDA margin of 15%. For the first half of 2026, or the six months ended June 30, 2026, adjusted EBITDA was 3.2 million, which is down 10% from the same period in 2025. The change reflects future growth related investments we made in the first half of 2026, which we will discuss later in this presentation. A major achievement of the company in the first six months of the year is positive net income in consecutive quarters, which has not happened since 2024. Net income in the first half of 2026 was $0.2 million compared to a loss of $1.3 million in the same period of 2025, an increase of $1.5 million in net income. Cash flow from operations for the first half of 2026 generated $1 million in positive cash flow compared with $4 million of cash consumption in the same period last year, a $5 million improvement year over year. Overall, the balance sheet has strengthened as the company generates cash from operations while also servicing and paying down its long-term debt. Thank you for joining us today. Thanks so much, Phil.