Avante Corp.

Good afternoon, everyone. We will be starting in one minute. Thank you everyone for joining us today and welcome to Avante's fiscal first quarter investor webinar covering the three months ended June 30th, 2026. My name is Rajen Sohal and I will be the moderator for today's call. Joining me on the call today are Emmanuel Mounouchos, founder and CEO of Avante and Raj Kapoor, the company CFO. This call is being recorded. There will be a question and answer session at the end of the call. I trust that everyone has received a copy of our financial results press release that was issued earlier today. Listeners are also encouraged to download a copy of our interim financial statements and management discussion and analysis from cedarplus.ca. Please note, portions of today's call, other than historical performance, include statements of forward-looking information within the meaning of applicable securities laws. These statements are made under the safe harbor provisions of those laws, forward-looking statements that are based on management's current views and assumptions, and that this discussion is qualified in its entirety by the cautionary note regarding forward-looking statements that is appended to our news release. Please review our press release and advantage reports filed on CDAR Plus for various factors that could cause actual results to differ materially from the projections. We use terms such as gross profit, gross margin, adjusted EBITDA, and RMR on this conference call, which are non-IFRS and non-GAAP measures. For more information on how we define these terms, please refer to the definitions set out in our management discussion and analysis. And with that, let me turn over the call to Mr. Emmanuel Mounouchos, founder and CEO.

Thank you, Rajen, and welcome everyone. We truly appreciate everyone joining us today. On today's call, our CFO, Raj Kapoor, will review our fiscal first quarter results and I will provide a general update and business overview of where the company is today and a positive outlook for fiscal 2027. Before we get into the financial results, I would like to begin with a high-level overview of Avante. Avante is a leading provider of security operatives and technology-enabled security solutions to residential and commercial clients. Avante's mission is to deliver an elevated level of security globally with white-glove mentality to high-net-worth families and corporations alike. Our platform today spans five core areas. Security systems, which is our advanced burglar alarms, integrated camera systems, and smart box dual factor monitoring backed by our 24-7 professional oversight from our state-of-the-art control center. Protective services, which is our full range of physical protection, including highly trained executive security operatives, secure driving, rapid alarm response, and mobile patrols. GALO, which is our AI-powered video analytic platform delivering real-time monitoring, facial recognition and gun detection across residential and commercial spaces. Avante Black, our discrete specialized services delivered worldwide including secure international and transport travel, complex investigations and covert operations and HomeWorks, our premium home management offering including vetted trades and maintenance Avanti is headquartered in Toronto, Ontario, and we have approximately 212 employees in the company. Today, the security landscape for high net worth individuals has become more complex than ever. With rising geopolitical tension, increasing incidents of targeted crimes, and growing concerns over personal safety, the need for sophisticated security solutions has never been greater. High-profile individuals are no longer just seeking traditional protection. They require comprehensive, proactive measures that integrate advanced technology with expert oversight. At Avante, we understand these evolving risks and are committed to providing elite security services that offer not only protection but also peace of mind. I'm pleased to report that during the fiscal Q1, 2027, our teams completed over 182,000 patrols, executed over 600 secure transports. On today's call, we will walk through the following topics. First is our fiscal Q1 to 2027 financial results, which Raj will discuss shortly. Second, I will discuss a couple of our key catalysts for the fiscal year. And lastly, our positive outlook for fiscal 2027. I would now like to turn it over to our CFO, Raj Kapoor, who will discuss our financial results for the first quarter of fiscal 2027. Raj?

Thank you, Manny, and welcome, everyone. I am pleased to report another quarter of growth in revenue in adjusted EBITDA at Avante. For the three months ended June 30th, 2026, Avante achieved revenue of $10 million compared to $8.7 million in Q1 of fiscal 2026, an increase of 14%. Adjusted EBITDA for the quarter was $818,000 compared to $359,000 in Q1 of fiscal 2026, an increase of 128%. Our fiscal first quarter 2027 results are as follows. Reoccurring monthly revenue of 4.3 million compared to 4.1 million in Q1 of fiscal 2026, an increase of 7%. Gross profit of 4.5 million compared to 3.3 million in Q1 of fiscal 2026, an increase of 35%. Gross margin of 44.9% compared to 37.9%. and higher margin segments including Avante Black and NSSG. I'd like to take a moment to highlight Avante's consistent growth profile. On this slide, you'll see our trailing 12-month revenue over the past several quarters. Notably, our TTM revenue has grown sequentially every quarter over this period, highlighting the durability and consistency of our growth trajectory. TTM revenue grew to $38.5 million in Q1 of fiscal 2027 compared to $34.6 in Q1 of fiscal 2026, an increase of 11%. The company's growth has been driven by the onboarding of new customers through focused sales efforts, enhanced customer support, and launch of new services and strategic acquisitions such as NSSG. Our business model We expect reoccurring revenue to increase in the coming quarters as contracts are renewed and new ones are secured. Our client contracts are typically one year in length and we maintain a 98% client retention or renewal rate, demonstrating the strength of our value proposition. I'm pleased to report that we have maintained the strength of our balance sheet, giving us the flexibility to fund the company's organic growth initiatives. As of June 30th, 2026, as of June 30, 2026 was $3.6 million. We remain able to continue funding our growth with cash flow from operations. Overall, the company is operating from a very strong financial position. Revenues are growing, profit margins are increasing, and our cash is