Sabio Holdings Inc.

Good morning, everyone, and welcome to Sabio Holdings' third quarter 2025 earnings call. The financial statements and management discussion and analysis are available on CDAR+. Today is Tuesday, November the 25th, 2025. Joining us are Sabio's founder and chief executive officer, Aziz Ramatullah, and our chief financial officer, Sajid Premji. After management's remarks, we will open the call for questions. Analysts may raise your virtual hand and investors may submit questions in the question and answer window. Before we begin, please note that today's remarks may contain forward-looking information. These statements involve known and unknown risks and uncertainties. Please refer to our filings on CDARplus for more information. All figures are stated in US dollars unless otherwise noted. With that, I'll turn it over to Aziz.

Thank you, Martin, and good morning, everyone. Let me begin with an honest look at the environment we operated in during the third quarter. The overall market conditions were best described as chaotic. Many advertisers front-loaded budgets into the first and second quarters, and government spending cutbacks created a ripple effect across the advertising ecosystem. As a result, advertising revenue was pressured in the third quarter. Despite those challenges, our team stayed laser-focused on the plan we laid out early in the year, a plan built around diversification, scalability, and building a business that performs consistently even when the broader market does not. that focus delivered results. We achieved growth in the first half of approximately 34% and year-to-date growth of 10% when normalized for political spending in what is traditionally our softest quarter of a non-political year. This quarter is not about temporary macro headwinds. It's about how Sabio executed through them and how the business we built over the past 18 months is structurally stronger, more resilient, and more diversified than at any point in our history. Before we get into the details of how we transform our business as quarter in a meaningful way, I wanna take you back to who we were just a few short years ago in 2020. That year, we were a mobile display company whose ad supported streaming revenue was in the single digits. In contrast today, we are delivering more than 70% of our revenue in ad supported streaming, which is one of the fastest growing segments in advertising. While our transition into ad-supported streaming was consequential, the transformation of our company's quarter is defining. Just one year ago, Sabia relied on a single United States product for nearly 100% of our revenue. Today, we operate across three distinct product lines, each with strong momentum. Advertising supported connected television via programmatic, mobile video and performance marketing, creator television, our creator-led streaming network. All of this powered by, while simultaneously sending data to our AppScience 80 million household data graph. In parallel, we built a meaningful international presence, led by the United Kingdom, giving Savio multi-geography exposure for the first time. These shifts generated tangible acceleration. We moved from 4% growth in first quarter to 40% growth in third quarter of our emerging categories. Savio is no longer a one-product, one-market business. We are now multi-product, multi-market, multi-channel, data-driven, and built for scale. This is exactly the platform required to compete and win, and an advertising-supported streaming enters into next major growth cycle. Our product transformation is showing up clearly in the numbers. and momentum remains strong across all of our new product lines. Creator Intelligent continues to scale across major advertising-supported video-on-demand partners. We saw over 38% month-over-month growth in unique viewers across platforms such as Plex, Live TV, Sling TV, Comcast Zumo, Amazon Fire TV, and Enoki. Distribution and viewership continues to climb as more partners onboard and expand our reach. Programmatic buying is accelerating. We delivered over 57% month over month growth in programmatic sales this year. And programmatic now accounts for 20% of our total sales mix. This is where we have a key advantage in our AppScience household propriety graph and complete tech stack. When brands turn on our programmatic offering, the household graph has them coming back for more. In fact, despite this being a new offering, we're seeing 85% renewal rate. When combining that with our record number of new nameplates, we are starting to build momentum for 2026. In addition, our international strategy is performing exceptionally well. Revenue grew over 257% year over year, representing 90% of the total sales mix in third quarter. In parallel, our app science measurement capabilities continue to drive brand validation and strengthen campaign performance, while mobile performance marketing remains solid and complimentary. These new product lines have become real growth engines for Savio, expanding our revenue base, strengthening diversification, and increasing the resiliency of the business as we enter into a strong 2026 political cycle. More than 90% of all advertising supported streaming spending now occurs programmatically, including in political and advocacy. Our early investments in programmatic infrastructure, supply integrations, and data positioning via our propriety app science graph means we benefit from this trend as it accelerates. As programmatic expands within our mix, it enhances our operating leverage, improves yield efficiency, and drives more predictable quarter-to-quarter performance. Our top line performance and customer metrics demonstrate the durability of our model and the growing adoption of our expanded product suite. Top results, top line results. Advertising supported streaming revenue increased 30% year over year, excluding political and advocacy spending. International revenue increased 257% year over year, now 8% of our total sales. Recurring revenue remained strong at 85%, excluding political advertising. 182% year-to-year growth in new logos. Nearly 70% of major 2020 customers increased their spend with Savio. And then finally, continued expansion across connected television and over the top streaming environments. These metrics underline expanded demand, strengthening diversification and increasing validation of our long-term strategy. With that, I'll turn it over to our CFO, Sajid Premji. Sajid?

Thank you, Aziz. Our third quarter results align with what we typically expect in a non-political year, where our customer budgets are weighed more heavily towards the first half than in political years. Even with the seasonality and the softer market backdrop, our branded business remains solid. Gross revenue was $9.3 million U.S., or $8.8 million U.S. normalized for political and advocacy, compared with $9.8 million U.S. dollars in the same period last year when normalized for political and advocacy. The expected softness in the nonpolitical third quarter was further impacted by budget front-loading ahead of U.S. tariffs. Net revenue with 8.2 million U.S. or 7.7 million U.S. normalized for political inefficacy compared with 9.8 million U.S. last year when normalized for political inefficacy. This reflected a higher mix of programmatic transactions, which typically carries lower top line net revenues but more efficient delivery. Core advertisers supported streaming revenue increased 2% year over year, excluding political and advocacy spending, demonstrating continuing visibility in our foundational business and represented 76% of our gross sales mix for the quarter. Programmatic sales reached $1.9 million US, representing 20% of consolidated gross revenues, highlighting strong adoption of automated buying for a new offering launched just this year. International sales grew 240% year over year, driven primarily by strong traction in the UK as our investments in the region continue to deliver strong returns. Gross margin was 59% compared with 60% last year, remaining stable even as programmatic scaled within the mix. Adjusted earnings before interest, taxes, depreciation, and amortization was negative $2.2 million U.S. compared with $2 million gain in the same period last year, reflecting continued investment in new product lines and international expansion. Programmatic and international sales combined accounted for nearly 40% of our third quarter consolidated gross revenues, highlighting the rapid scaling of our new offerings and geographies. Normalized for political and advocacy spending, year-to-date consolidated gross sales remain up 10% versus last year. Turning to capitalization, Sabio ended the quarter with $2 million U.S. in cash. During the quarter, we retired $1.7 million Canadian dollars of secured and unsecured convertible notes. And subsequent to quarter end, we completed a $1.28 million Canadian listed issuer financing exemption offering. These actions structured our balance sheet while minimizing dilution and aggregate. During the quarter, our UK subsidiary entered into a receivables purchase agreement with revamped funding to complement our existing US facility with SLR. This is a common liquidity tool in the tech sector. In practice, it allows us to borrow against invoices already issued and campaigns already delivered on, giving us access to the cash sooner, much like a payday advance does for individuals. Our receivables continue to carry very low loss rates because our customers are primarily major global brands and leading advertising agencies. As those invoices are paid, the cash automatically goes towards reducing the loan balance and we can draw again for working capital needs subject to availability. As a result, our facilities are continually being repaid and recycled as collections come in. Collectively, these steps position Savio for flexibility and strength entering into 2026. Aziz, back to you.