Sabio Holdings Inc.

Good morning, everyone, and welcome to Savio Holdings' 2025 Earnings Call. The financial statements and management discussion and analysis are available on CDAR+. Today is Friday, May 1st. Joining us are Savio'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 statements and information. These statements involve known and unknown risks and uncertainties. Please refer to the filings on CDAR Plus for more information. All figures are stated in U.S. dollars unless noted otherwise. With that, I now turn it over to Aziz.

Thank you, Martin. Good morning, everyone. Our performance in 2025 reflects a year that was both transformative and volatile. We entered the year with a clear mandate, drive top-line growth while diversifying into programmatic and international markets. That strategy delivered strong early results with a 34% year-over-year growth in the first half. As the year progressed, macroeconomic pressures, particularly tariff impacts across two key sectors of auto and telco sectors, disrupted momentum, resulting in a flat second half relative to the first, something we had never experienced in our 11-year history. Despite these headwinds, we delivered 10% top-line growth excluding political inadequacy, driven by expansion into new products and global markets. More importantly, we have established a stronger foundation for future growth through diversification and scale. We transitioned from a business where 97% of revenue in 2024 was driven by a single product and one geography to a more balanced model, with 48% now generated from two key growth vectors, programmatic and international, all while maintaining a strong 90% renewal rate among our top customers. At the same time, we are scaling a third platform, our creative television platform, which is expected to contribute meaningful in the year ahead. This positions us well for 2026, which we expect to be another strong political cycle. We'll share more on our outlook shortly, but for now, I'll turn it over to Sajid to walk through the financials in more detail.

Thank you, Isis. After a record first half with revenue growth of 33%, our core branded business continued to perform solidly into the second half. Results were impacted by tariff-related uncertainty in two of our largest branded verticals, and in the fourth quarter, we saw the expected drop-off on political advocacy spend along with some incremental softness. Gross revenue was $11.2 million U.S. where 10.3 million U.S. normalized for political advocacy, up 10% compared to 9.4 million U.S. in the same period last year on a normalized basis. Expected softness in the non-political fourth quarter was further impacted by domestic tariff-related pressures. Consolidated net revenue was 9.8 million U.S. compared to 18.3 million last year, driven by an $8 million decrease in non-recurring political advocacy spend in an off-election year. as well as margin pressure associated with the company's expansion into programmatic markets. Core asset-supported streaming revenue increased by 29% year-over-year, excluding political absentee, demonstrating continued double-digit growth in our foundational business. It represented 75% of gross sales for the quarter. Programmatic revenue scaled from less than $200,000 in Q1 to $2.7 million in Q4. representing 24% of our consolidated growth revenues and highlighting strong adoption of automated buying for a new offering launched just this year. International sales more than tripled to 2.6 million U.S. and less than 800K in the prior year, driven primarily by strong traction in the U.K. as our investments in the region continue to deliver high returns. Gross margin was 57% compared to 62% last year, reflecting mixed pressure for the scaling of lower-margin programmatic and, to a lesser extent, international, partially offset by Fabio's end-to-end technology stack. Adjusted EBITDA was a loss of $2.1 million compared to a $2.8 million gain in the same period last year, reflecting lower political and advocacy spend in the non-election year and temporary softness in select advertising categories tied to tariff uncertainty. Programmatic and international sales combined accounting for nearly 48% of our four-quarter sales, highlighting the rapid scaling of our newer offerings and geographies. Normalized for political and advocacy spending, full-year consolidated gross sales increased 10% year-over-year, with core revenues rising to $35.2 million in the U.S. from $31.9 million. Savio continues to demonstrate growth in non-political years, with gross sales of 41.3 million U.S. across all categories compared to 36 million in the prior 2023 off-election year. Our newer offerings were meaningful contributors. Programmatic gained strong early traction, accounting for approximately 14% of consolidated gross sales and generating 5.6 million U.S. in revenue during the year. International revenues increased nearly fourfold to 5 million U.S. from 1.4 million in the prior year, representing approximately 12% of consolidated gross sales. Together, international and programmatic represented 26% of our sales for the year. Notably, 82% of programmatic and 88% of international sales were generated in the second half of 2025, reflecting rapid scaling over the course of the year. Early trends in the first quarter of 2026 indicate This momentum is continuing, with both programmatic and international sales growing on more than 20 times year-over-year levels. U.S. reoccurring revenues reached 87%, including 90% of our top logos, underscoring top-strong client retention. Meanwhile, our expanding product suite and growing international footprint continue to broaden our roster of leading global brands, driving a 153% increase in new logos in 2025. As we continue to fine-tune our cost structure, subsequently as the year ran, Savio implemented approximately $1 million in annualized cost reductions in the first quarter, which further targeted its efficiency to be implemented in the near term. Turning to capitalization, Savio ended the year with $1.3 million in U.S. in cash, And during the quarter, we completed the $1.3 million Canadian dollar listed issuer financing exemption offering. And starting from the quarter end, supplemented this with a $900K Canadian convertible debt financing. Just as a similar size raise in 2023 enabled the company to secure higher margin supply ahead of the 2024 election cycle, we believe these actions position as well for the 2026 U.S. midterm election cycle, which will be our first with a programmatic offering. It is worth noting that political clients prepaid their spend with Fabio, which benefits near-term liquidity. The size is significant. In 2024, we received approximately $8 million in prepaid media spend during that election cycle. During the second half of 2025, our UK subsidiary entered into a receivable agreement with Advanced Funding, a common liquidity tool in the ad tax sector. This facility allows us to access cash earlier by investing against invoices for campaigns that have already been delivered. Our receivables continue to exhibit very low loss rates, reflecting a customer base comprised primarily of major global brands and leading advertising agencies. As collections are received, they are used to repay the facility which can then be redrawn for ongoing working capital needs, providing a self-repunishing source of liquidity. Collectively, these steps position Fabio with enhanced flexibility as we enter 2026. Aziz, back to you.