Sabio Holdings Inc.

Joining us are founder and chief executive officer Aziz Rahimtoola and 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 the filings on CDR Plus for more information. All figures are stated in U.S. dollars unless otherwise noted. With that, I turn it over to Aziz.

Thank you, Martin. Good morning, everyone. Q2 demonstrates how effectively we've been leveraging our tech stack and data backbone to scale our US programmatic and EMEA ad-supported streaming business. The growth of our US programmatic and EMEA momentum couldn't happen at a better time. We're benefiting from three shifts happening simultaneously. Client need to be in ad-supported streaming. transacted programmatically while having the option to scale it globally. 49% of Q2 revenue came from U.S. programmatic EMEA expansion, growing at a strong 290% year-to-year rate. We're not achieving this by sacrificing margins. We're actually expanding them sequentially to 61%. And we're growing it through new logos against the backdrop of political inadequacy historically skewed 70% in the second half of the year. We're executing and growing across all key metrics while becoming a leaner organization thanks to AI-driven efficiencies. I'm now going to hand it to Sajid Premji, our CFO, to dig into the numbers.

Thank you, Aziz. In Q2, we began to see the investments in efficiency work that we've been driving all year show up in the numbers, with a larger impact still to come in the second half. Gross and adjusted EBITDA margins expanded meaningfully, and our loss narrowed sequentially. Our newest growth channels, US Programmatic, and our international platform covering Europe, the Middle East, and Africa, or EMEA, continued to scale at a robust pace, with a 77% increase in new customer logos. Meanwhile, our more mature as supported streaming managed service business continues to underpin a strong 82% recurring revenue rate, including 92% in the US. While we face some of the same seasonal headwinds we called out last quarter, Savio's underlying business is moving in the right direction. Consolidated gross revenues were 9.7 million U.S., down from 11.7 million U.S. a year ago, primarily due to the absence of approximately 2.5 million U.S. in higher margin political and advocacy revenue, which in election years is historically concentrated in the second half. Normalized for that political advocacy spend, our brand business grew 6% year over year, driven by continued strength in our top logos, even as we absorbed that seasonal shift. As supported streaming, our foundational business came in at 6.2 million US compared with 7.9 million US a year ago. Once again, though, normalized for political and advocacy spend, brand results were largely flat, down about 2%, and that slight decline was due to an existing customer, a top global brand, shifting a specific high-dollar campaign into our new digital at-home offering, which we began monetizing this quarter. Excluding that shift, core streaming growth would have been positive, and as further evidence, our mobile business benefited from that same shift. Mobile growth sales were 3.5 million US compared with 3.6 million a year ago, and normalized for political advocacy, brand mobile sales were up 32% year over year, driven by that shift into our new digital at-home offering. US programmatic in EMEA again drove the growth story this quarter. U.S. programmatic sales reached 2.9 million U.S., up 240% year-over-year, and now representing 30% of consolidated gross sales. Our U.S. programmatic customer count grew 116% year-over-year, with 90% of Q1 programmatic customers renewing into Q2 and 79% of repeat U.S. programmatic customers increasing their spend. EMEA sales reached 1.9 million US, up 386% year over year. On a first half basis, EMEA sales reached 5 million and have already matched our full year 2025 EMEA revenue over that 12-month period. 54% of second quarter EMEA logos were new, up 343% year over year. And together, U.S. programmatic in EMEA represented 49% of our second quarter gross sales, up 10% from a year ago. Globally, new customer logos grew 77% year over year, representing 35% of our Q2 logo base. and the reoccurring revenue represented 82% of total revenues and 92% in the US, underscoring the visibility and predictability of our domestic revenue base. Gross margins came in at 61%, up eight points sequentially from 53% in the first quarter, driven by improved supply agreements, tech efficiencies and an improving sales mix. We expect continued margin improvement through the second half supported by these factors and the return of higher margin political and advocacy spend. Adjusted EBITDA was a loss of 2.7 million, narrowing sequentially from a loss of 3.4 million in Q1, an improvement of 14 percentage points on a margin basis. Our cost reduction initiatives are expected to deliver more than 2 million analyzed once fully implemented. As we head into the second half, we've already secured more than 5 million U.S. in political and advocacy commitments. Seasonality is meaningful for Savio's business. In 2025, 88% of EMEA revenue and 82% of U.S. programmatic sales came in the second half. And in our last political year, 2024, 69% of total revenues came in the second half of the year. With improving margins, a leaner cost structure, strong customer retention, and a substantial pipeline of second half political and advocacy commitments, we believe that Savio is positioned for adjusted EBITDA to return to profitability in the second half of 2026. Turning to capitalization, Savio ended the quarter with 1.5 million US in cash, up by 500K in Q1. Debt outstanding under our U.S. and U.K. credit facilities was roughly flat at $6.1 million compared to $6.2 million U.S. at the end of Q1 and down from $9.1 million at year-end. Sabio's receivables continue to show very low loss rates driven by a customer base made up primarily of major global brands and leading ad agencies. As collections come in, They're used to repair facilities which can be drawn on an ongoing basis for working capital needs, giving us a self-replenishing source of liquidity. On the strength of our international EMEA business during the quarter, Sabio was approved for an increase in its UK credit facility from 3 million British pounds to 5 million British pounds. We also supplemented this with a 900k Canadian The proceeds of which were used to secure higher margin direct supply. That supply helped drive gross margins to 67% in June, our strongest margin month of the year. Subsequent to quarter end, we further strengthened our position by raising 1.5 million US through a non-dilutive term loan secured by certain assets of our immediate operations. Together, these steps give Sabio greater balance sheet flexibility as we enter what is historically our strongest sales quarters of the years, including the capacity to secure a more higher margin direct supply ahead of the political season. Aziz, back to you.