Q3 2025 Tribe Property Technologies Inc Earnings Call

December 1, 2025

Speaker #1: Welcome to Zoom. Enter your meeting ID followed by pound. Enter your participant ID; you have joined the meeting as an attendee and will be muted throughout the session.

Operator: Welcome to Zoom. Enter your meeting ID followed by pound. Enter your participant ID. You have joined the meeting as an attendee and will be muted throughout the meeting.

Speaker #2: I'm going to hand it over to our new— not new to the company, but new to the role— CFO, Scott.

Joseph Nakhla: I'm going to hand it over to our new—not new to the company, but new to the role—CFO, Scott.

Speaker #3: Thank you, Joseph. Let me first start by thanking Joseph and our board of directors. In their support of me filling this role as CFO, I know I have big shoes to fill. To those who served before me, I'm now one month shy of five years of working with this great team here at Tribe, and I'm very excited about our future.

Scott Ullrich: Thank you, Joseph. Let me first start with a thank you to Joseph and our board of directors in their support of me filling this role as CFO. I know I have big shoes to fill, but those who served before me, I'm now one month shy of five years of working with this great team here at Tribe, and I'm very excited about our future. Moving on here, this chart here, we've got the quarterly revenue comparison for the three months of Q3. Indulge me here, please. I'm going to go year over year from 2023 just to show our growth here. Q3 2023 ended at CAD 4.8 million, and it grew 74% to CAD 8.3 million in 2024. Q3 2025 remained stable at that CAD 8.3 million mark.

Speaker #3: But moving on here, this chart here, we've got the quarterly revenue comparison for the three months of Q3, and indulge me here, please. I'm going to go year over year from 2023 just to show our growth here.

Speaker #3: So Q3 2023 ended at $4.8 million, and it grew 74% to $8.3 million in Q3 2024. Then, Q3 2025 remained stable at that $8.3 million.

Speaker #3: Now, this was due to an exercise where, throughout the year, we traded lower margin contracts for higher margin ones. This was a strategic move on our part, allowing us to basically do more with less.

Scott Ullrich: This was due to an exercise where throughout the year, we traded lower margin contracts for higher margin ones. This was a strategic move on our part, allowing us to basically do more with less. Our quarterly gross profit started at CAD 1.5 million ending balance in 2023, growing, well, doubling almost to CAD 3 million in 2024. In 2025, we saw a further increase of 23% to CAD 3.7 million. Our gross margin percentage was 47% in Q3 2025, compared to 39% for the same period in 2024. This increase in profit margin, I think, highlights the benefit of us shifting focus on our client base, as well as continuing our efficiency efforts. Our quarterly adjusted EBITDA, again, starting with our Q3 2023 ending EBITDA balance of negative CAD 1.44 million. We improved this by 93% in 2024 to negative CAD 105,000.

This was due to an exercise where throughout the year, we traded lower margin contracts for higher margin ones. This was a strategic move on our part, allowing us to basically do more with less. Our quarterly gross profit started at CAD 1.5 million ending balance in 2023, growing, well, doubling almost to CAD 3 million in 2024. In 2025, we saw a further increase of 23% to CAD 3.7 million. Our gross margin percentage was 47% in Q3 2025, compared to 39% for the same period in 2024. This increase in profit margin, I think, highlights the benefit of us shifting focus on our client base, as well as continuing our efficiency efforts. Our quarterly adjusted EBITDA, again, starting with our Q3 2023 ending EBITDA balance of negative CAD 1.44 million. We improved this by 93% in 2024 to negative CAD 105,000.

Speaker #3: Our quarterly gross profit started at $1.5 million, ending balance in 2023, growing or doubling almost to $3 million in 2024. And 2025 saw a further increase of 23% to $3.7 million.

Speaker #3: Our gross margin percentage was 47% in Q3 2025 compared to 39% for the same period in 2024. This increase in profit margin highlights the benefit of our shift in focus on our client base, as well as the continuation of our efficiency efforts.

Speaker #3: Our quarterly adjusted EBITDA, again, starting with our Q3 2023 ending EBITDA balance of negative $1.44 million, we improved this by 93% in 2024 to negative $105,000.

Speaker #3: And our Q3 2025 EBITDA has us at negative $84,000, which is still a 20% improvement over 2024. I want to point out here that our monthly EBITDA numbers for the months of August and September were positive, with our overall Q3 number being negative only due to performance-based bonuses, which were paid out in July.

Scott Ullrich: Our Q3 2025 EBITDA has us at negative CAD 84,000, which is still a 20% improvement over 2024. I want to point out here that our monthly EBITDA numbers for the months of August and September were positive, with our overall Q3 number being negative only due to performance-based bonuses which were paid out in July. Next slide, please. This is showing our nine-month numbers, and it follows a similar path to what I just highlighted for Q3, our nine-month revenue comparison. Using the 2023 nine-month base of CAD 14.3 million, revenues grew 39% to CAD 19.8 million in 2024, and grew a further 23% to CAD 24.4 million in 2025. 2025 saw our software and service fees grow 24%, and our transactional revenues grow 19%. Our nine-month gross profit comparison starts at CAD 4.5 million, nine-month ending balance in 2023, and this grows 60% to CAD 7.2 million in 2024.

Our Q3 2025 EBITDA has us at negative CAD 84,000, which is still a 20% improvement over 2024. I want to point out here that our monthly EBITDA numbers for the months of August and September were positive, with our overall Q3 number being negative only due to performance-based bonuses which were paid out in July. Next slide, please. This is showing our nine-month numbers, and it follows a similar path to what I just highlighted for Q3, our nine-month revenue comparison. Using the 2023 nine-month base of CAD 14.3 million, revenues grew 39% to CAD 19.8 million in 2024, and grew a further 23% to CAD 24.4 million in 2025. 2025 saw our software and service fees grow 24%, and our transactional revenues grow 19%. Our nine-month gross profit comparison starts at CAD 4.5 million, nine-month ending balance in 2023, and this grows 60% to CAD 7.2 million in 2024.

Speaker #3: Next slide, please. So this is showing our nine-month numbers, and it follows a similar path to what I just highlighted for Q3. Our nine-month revenue comparison using the 2023 nine-month base of $14.3 million, revenues grew 39% to $19.8 million in 2024 and grew a further 23% to $24.4 million in 2025.

Speaker #3: 2025 saw our software and service fees grow 24% and our transactional revenues grow 19%. Our nine-month gross profit comparison starts at $4.5 million, nine-month ending balance in 2023, and this grows 60% to $7.2 million in 2024.

Speaker #3: And then 2025 saw a further increase of 41% to $10.1 million. Our adjusted EBITDA from negative $5.5 million in 2023 grew 50% to negative $2.6 million in 2024.

Scott Ullrich: In 2025, we saw a further increase of 41% to CAD 10.1 million. Our adjusted EBITDA from negative CAD 5.5 million in 2023 grew 50% to negative CAD 2.6 million in 2024, and then a 107% jump to positive almost $200,000 in 2025. This year-over-year improvement, I believe, demonstrates that our national presence and our operating model is starting to hit the desired outcome of supporting our long-term growth initiatives. Next, thank you. This last slide of mine shows our compound annual growth rate over the past five years. To date, that number is 58%, and we are on track to finish this year with another record revenue number come 31 December. This slide here also shows us hitting positive EBITDA, again, of almost $200,000. It was actually $197,000 for the nine months ending 30 September 2025, and we are confident of improving that number by year-end.

In 2025, we saw a further increase of 41% to CAD 10.1 million. Our adjusted EBITDA from negative CAD 5.5 million in 2023 grew 50% to negative CAD 2.6 million in 2024, and then a 107% jump to positive almost $200,000 in 2025. This year-over-year improvement, I believe, demonstrates that our national presence and our operating model is starting to hit the desired outcome of supporting our long-term growth initiatives. Next, thank you. This last slide of mine shows our compound annual growth rate over the past five years. To date, that number is 58%, and we are on track to finish this year with another record revenue number come 31 December. This slide here also shows us hitting positive EBITDA, again, of almost $200,000. It was actually $197,000 for the nine months ending 30 September 2025, and we are confident of improving that number by year-end.

Speaker #3: And then a 107% jump to positive, almost $200,000 in 2025. This year-over-year improvement, I believe, demonstrates that our national presence and our operating model are starting to hit the desired outcome of supporting our long-term growth initiatives.

Speaker #3: Next, thank you. This last slide of mine shows our compounded annual growth rate over the past five years. To date, that number is 58%, and we are on track to finish this year with another record revenue number come December 31st.

Speaker #3: This slide here also shows us hitting positive EBITDA again of almost $200,000. It was actually $197,000 for the nine months ending September 2025, and we are confident of improving that number by year-end.

Speaker #3: And this improvement, I believe, reflects our operational efficiencies, our disciplined cost management, and our continued investments in our growth initiatives. That concludes my financial update.

Scott Ullrich: This improvement, I believe, reflects our operational efficiencies, our disciplined cost management, and our continued investments in our growth initiatives. That concludes my financial update. Hey, Joseph, I'll turn it back to you.

This improvement, I believe, reflects our operational efficiencies, our disciplined cost management, and our continued investments in our growth initiatives. That concludes my financial update. Hey, Joseph, I'll turn it back to you.

Speaker #3: Hey, Joseph, I'll turn it back to you.

Speaker #2: Thanks, Scott. Great job to you and the team. And obviously, it is worth noting that one of the more unique things about Scott's background in the organization is his incredible leadership in both property management and the rental and condo side.

Joseph Nakhla: Thanks, Scott. Great job to you and the team. It is worth noting that one of the more unique things about Scott's background in the organization is his incredible leadership in both property management on the rental, on the condo side. There's probably a handful of people in the country that would have accumulated the experience both on the finance and on the operation side that Scott has. We're incredibly blessed to have you in that role. Thanks again for a great job, you and your team.

Speaker #2: This is probably a handful of people in the country who would have accumulated the experience both on the finance and on the operations side that Scott has. We are incredibly blessed to have you in that role.

Speaker #2: So thanks again for a great job. You and your team. Next slide.

Speaker #1: Thank you.

Scott Ullrich: Thank you.

Joseph Nakhla: Next slide, please. One second here. Great. Just a way of reminding everyone, we have two big segmentations that have multitudes of revenue streams. We have what we call the recurring, the sticky recurring business, which is the tech elevator or tech-enabled management services, where we license our software and services to either condos, condo corps, developers, and/or big rental portfolio holders or landlords. We obviously have a long list of transactional revenue streams that sit under multitudes of umbrellas. Some are very much rental-based, some are condo-based. I mentioned earlier the launch of our online condo document management system that in real time prepares all the paperwork that's required for you to conclude on a sale or a purchase of a condo and other things as well, refinancing and so on. All these different products and services sit and generate additional revenue for us.

Speaker #2: Please, one second here. Great. So just as a wave of reminding everyone, we have two big segments that have multitudes of revenue streams. We have what we call the recurring, sticky recurring business, which is the tech elevator or tech-enabled management services where we license our software and services to either condos, condo corporations, developers, and/or big rental portfolio holders or landlords.

Speaker #2: And we obviously have a long list of transactional revenue streams where they sit under multitudes of umbrellas. Some are very much rental-based, and some are condo-based.

Speaker #2: I mentioned earlier the launch of our online condo document management system that, in real-time, prepares all the paperwork that's required for you to conclude on a sale or a purchase of a condo.

Speaker #2: And other things as well are refinancing and so on. All these different products and services sit and generate additional revenue for us from some of our in-app purchases. Some of them are just a suite of products and services that a homeowner and/or a condo corporation can actually purchase for their own needs for the community.

Joseph Nakhla: Some of them are in-app purchases. Some of them are just a suite of products and services that a homeowner and/or a condo corporation can actually purchase for their own needs for the community. That continues to grow for the year. We will keep adding more of those products. You'll see more and more of these types of partnerships. We used to put one or two of them per announcement. Now we have a larger number of them, so we're actually accumulating them and compounding them in our announcements just to let the street know what we've got available to them in their homes and in the marketplaces.

Some of them are in-app purchases. Some of them are just a suite of products and services that a homeowner and/or a condo corporation can actually purchase for their own needs for the community. That continues to grow for the year. We will keep adding more of those products. You'll see more and more of these types of partnerships. We used to put one or two of them per announcement. Now we have a larger number of them, so we're actually accumulating them and compounding them in our announcements just to let the street know what we've got available to them in their homes and in the marketplaces.

Speaker #2: And that continues to grow. For the year, we will keep adding more of those products. You'll see more and more of these types of partnerships.

Speaker #2: We used to put one or two of them per announcement. Now we have a larger number of them. So we're actually accumulating them and compounding them in our announcements just to let the street know what we've got available to them in their homes and in the marketplaces.

Speaker #2: One of the more unique things we're starting to see now in the large master plan communities that we're securing is the ability for our marketplace to connect the new tenants or the new homeowners purchasing in a larger community with a lot of the businesses that exist in that community that they're moving into.

Joseph Nakhla: One of the more unique things we're starting to see now in the large master plan communities that we're securing is the ability for our marketplace to connect the new tenants or the new homeowners purchasing in a larger community with a lot of the businesses that exist in that community that they're moving in. A lot of these places have retails. We're working on places that are big communities that are attached to malls where actually the retailers can actually use our marketplace to communicate and deliver offers to the homeowners. You'll see more news on that in the next couple of quarters here. Next slide, please. Okay. What's today in your life as either investors, shareholders, or bankers of not listening to somebody tell you how important AI is? I will tell you the following.

One of the more unique things we're starting to see now in the large master plan communities that we're securing is the ability for our marketplace to connect the new tenants or the new homeowners purchasing in a larger community with a lot of the businesses that exist in that community that they're moving in. A lot of these places have retails. We're working on places that are big communities that are attached to malls where actually the retailers can actually use our marketplace to communicate and deliver offers to the homeowners. You'll see more news on that in the next couple of quarters here. Next slide, please. Okay. What's today in your life as either investors, shareholders, or bankers of not listening to somebody tell you how important AI is? I will tell you the following.

Speaker #2: So a lot of these places have retailers. We're working on places that are big communities that are attached to malls, or actually the retailers can use our marketplace to communicate and deliver offers to the homeowners.

Speaker #2: So you'll see more news on that in the next couple of quarters here. Next slide, please. Okay. What's today in your life as either investors, shareholders, or bankers?

Speaker #2: I'm not listening to somebody tell you how important AI is. So I will tell you the following: we are actually putting serious efforts into the organization to be an AI-first platform.

Joseph Nakhla: We are actually putting serious efforts in the organization to be an AI-first platform. As you may know, we are considered to be the most advanced platform as far as technologically affecting our service delivery in property management, specifically in the condo space. That's already known. However, we think there's a monster opportunity to really impact or improve our gross margin while delivering even more superior service to our customers. You'll have seen in our financials a major improvement in our gross margins. At the end of the day, our cost of goods is our biggest line item, a lot of our salaries. The idea here isn't just to make cuts for the sake of cuts.

We are actually putting serious efforts in the organization to be an AI-first platform. As you may know, we are considered to be the most advanced platform as far as technologically affecting our service delivery in property management, specifically in the condo space. That's already known. However, we think there's a monster opportunity to really impact or improve our gross margin while delivering even more superior service to our customers. You'll have seen in our financials a major improvement in our gross margins. At the end of the day, our cost of goods is our biggest line item, a lot of our salaries. The idea here isn't just to make cuts for the sake of cuts.

Speaker #2: So, as you may know, we are considered to be the most advanced platform in terms of technology affecting our service delivery in property management, specifically in the condo space.

Speaker #2: That's already known. However, we think there's a monster opportunity to really impact and improve our gross margin while delivering even more superior service to our customers.

Speaker #2: You'll have seen in our financials a major improvement in our gross margins at the end of the day. Our cost of goods is our biggest line item.

Speaker #2: A lot of our salaries, and the idea here isn't just to make cuts for the sake of cuts. The idea here is to actually grow our revenue and grow our revenue streams, and the number of homes that we service, and to allow our team, utilizing AI, to actually deliver more service to more communities.

Joseph Nakhla: The idea here is to actually grow our revenue, grow our revenue streams, and the number of homes that we service, and allow our team utilizing AI to actually deliver more service to more communities. That's the point that Scott touched on earlier about this trading higher margin business, meaning we can do more. We can manage larger margin and better margin communities with the same number of people, or the incremental increase that we need on the number of people is less than the actual benefits we're receiving. This initiative that I've been speaking about here for about a quarter is well on its way. We have not deployed it fully yet. It's not going to shock you to know that whether you're looking at agentic or generative AI, things are changing significantly.

The idea here is to actually grow our revenue, grow our revenue streams, and the number of homes that we service, and allow our team utilizing AI to actually deliver more service to more communities. That's the point that Scott touched on earlier about this trading higher margin business, meaning we can do more. We can manage larger margin and better margin communities with the same number of people, or the incremental increase that we need on the number of people is less than the actual benefits we're receiving. This initiative that I've been speaking about here for about a quarter is well on its way. We have not deployed it fully yet. It's not going to shock you to know that whether you're looking at agentic or generative AI, things are changing significantly.

Speaker #2: And that's the point that Scott touched on earlier about this trading higher-margin business, meaning we can do more. We can manage larger margin and better-margin communities with the same number of people, or the incremental increase that we need in the number of people is less than the actual benefits we're receiving.

Speaker #2: So, this initiative that I've been speaking about here for about a quarter is well on its way. We have not deployed it fully yet.

Speaker #2: It's not going to shock you to know that, whether you're looking at agentic or generative AI, things are changing significantly. I'm very, very pleased with our decision to be very deliberate in testing and figure out where there's hype and where there's reality in terms of value creation for us—what can actually move the needle for us.

Joseph Nakhla: I'm very, very pleased with our decision to be very deliberative in testing and figure out where there's hype and where there's reality in terms of value creation for us, what can actually move the needle for us. Certainly not here to tell you that we've nailed it 100%. However, it is well documented that actually less than 5% of AI projects in companies right now are actually yielding value. Everybody just sprinted quickly to AI, just tried to deploy for the sake of deploying it. We've seen bits and pieces of it, even in our own industry with major failure, our resistance to just do it for the sake of doing it, and actually really, really converting our service delivery model to really start benefiting directly either for the customer or for ourselves, and our measuring tools, obviously our customer satisfaction, and essentially cost of goods per door.

I'm very, very pleased with our decision to be very deliberative in testing and figure out where there's hype and where there's reality in terms of value creation for us, what can actually move the needle for us. Certainly not here to tell you that we've nailed it 100%. However, it is well documented that actually less than 5% of AI projects in companies right now are actually yielding value. Everybody just sprinted quickly to AI, just tried to deploy for the sake of deploying it. We've seen bits and pieces of it, even in our own industry with major failure, our resistance to just do it for the sake of doing it, and actually really, really converting our service delivery model to really start benefiting directly either for the customer or for ourselves, and our measuring tools, obviously our customer satisfaction, and essentially cost of goods per door.

Speaker #2: Certainly not here to tell you that we've nailed it 100%. However, it is well documented that actually less than 5% of AI projects in companies right now are yielding value.

Speaker #2: So everybody just sprinted quickly to AI, just tried to deploy for the sake of deploying it. We've seen bits and pieces of it, even in our own industry, with major failure.

Speaker #2: Our resistance to just do it for the sake of doing it and actually really, really converting our service delivery model to really start benefiting directly either for the customer or for ourselves and our measuring tools, obviously our customer satisfaction and essentially cost of goods per door.

Speaker #2: We're starting to see those results. It's a little early, but I think 2026 is a transformational year. But I'm here to tell you that we're incredibly committed to actually making sure that everything and the incredible amount of data stack that we accumulate every day about the buildings and their performance is going to be sitting within an AI platform that is actually going to predict the health of the building, give us insight, and let us know if things are working out or not, provide better service, and actually ensure that our cost of goods do not grow at the same level as the revenue we anticipate to grow in the next couple of years.

Joseph Nakhla: We're starting to see those results. It's a little early, I think '26 is a transformational year. I'm here to tell you that we're incredibly committed to actually making sure that everything and the incredible amount of data stack that we accumulate every day about the buildings and their performance is going to be sitting within an AI platform that is actually going to predict the health of the building, give us insight, and let us know if things are working out or not working out, provide better service, and actually ensure that our cost of goods do not grow at the same level as the revenue we anticipate to grow in the next couple of years. Really, from our early focus, it's going to be around that resident request and escalation management, really suited for AI, the governance tools.

We're starting to see those results. It's a little early, I think '26 is a transformational year. I'm here to tell you that we're incredibly committed to actually making sure that everything and the incredible amount of data stack that we accumulate every day about the buildings and their performance is going to be sitting within an AI platform that is actually going to predict the health of the building, give us insight, and let us know if things are working out or not working out, provide better service, and actually ensure that our cost of goods do not grow at the same level as the revenue we anticipate to grow in the next couple of years. Really, from our early focus, it's going to be around that resident request and escalation management, really suited for AI, the governance tools.

Speaker #2: And then really, our early focus is going to be around that resident request and escalation management, which is really suited for AI, as well as the governance tools.

Speaker #2: It's not going to surprise many of you that I've ever lived in HOAs, condos, or gated communities that there's a significant amount of governance that we do.

Joseph Nakhla: It's not going to surprise many of you that have ever lived in HOAs, condos, or gated communities that there's a significant amount of governance that we do. Obviously, a lot of self-service tools. We've always been self-service champions, essentially. We have in the tens of thousands of tickets whereby homeowners and tenants interface with us and get answers to issues that they want to do, but we think we can even enhance that significantly. Next slide, please. Okay. We spoke about these new products. We put a press release on it. I recognize if you're not in the space, in the industry every day, these might not completely land as far as their value proposition. I can tell you that our industry is quite excited about what we're doing here. Let's go through those at a very high level.

It's not going to surprise many of you that have ever lived in HOAs, condos, or gated communities that there's a significant amount of governance that we do. Obviously, a lot of self-service tools. We've always been self-service champions, essentially. We have in the tens of thousands of tickets whereby homeowners and tenants interface with us and get answers to issues that they want to do, but we think we can even enhance that significantly. Next slide, please. Okay. We spoke about these new products. We put a press release on it. I recognize if you're not in the space, in the industry every day, these might not completely land as far as their value proposition. I can tell you that our industry is quite excited about what we're doing here. Let's go through those at a very high level.

Speaker #2: And obviously, a lot of self-service tools. We've always been self-service champions, essentially. We have tens of thousands of tickets whereby homeowners and tenants interface with us and get answers to issues that they want to resolve.

Speaker #2: But we think we can even enhance that significantly. Next slide, please. Okay. We spoke about this new product. We put out a press release on it.

Speaker #2: I recognize if you're not in the space in the industry every day, these might not completely land as far as their value proposition. And I can tell you that our industry is quite excited about what we're doing here.

Speaker #2: So, let's go through those very at a very high level. Rental Pool Programs—maybe let me just set up the scene for you. A significant number of developers, and again, we work with about 105 of them across the country, a significant number of those developers, when they are completing due to interest rates and market dynamics, are staying on inventory of units that have not sold.

Joseph Nakhla: Rental pool programs, maybe let me just set up the scene for you. A significant number of developers, and again, we work with about 105 of them across the country, when they are completing, due to interest rates and market dynamics, are sitting on inventory of units that have not sold. Their thought on it will be that they're eventually going to sell. There's a significant number of people that are sitting on the sidelines, waiting out some activities around the affordability issues, the interest rate issues, and obviously the tariff conversations that are occurring. Until these units sell, what we've been able to do is create a rental pool program that can actually allow either the developer and/or people that actually purchase it from the developer an income that's coming from that rental pool.

Rental pool programs, maybe let me just set up the scene for you. A significant number of developers, and again, we work with about 105 of them across the country, when they are completing, due to interest rates and market dynamics, are sitting on inventory of units that have not sold. Their thought on it will be that they're eventually going to sell. There's a significant number of people that are sitting on the sidelines, waiting out some activities around the affordability issues, the interest rate issues, and obviously the tariff conversations that are occurring. Until these units sell, what we've been able to do is create a rental pool program that can actually allow either the developer and/or people that actually purchase it from the developer an income that's coming from that rental pool.

Speaker #2: They're thought on it will be that they'll eventually going to sell. There's a significant number of people that are just sitting on the sidelines, waiting out some activities around the affordability issues and the interest rate issues.

Speaker #2: And obviously, the tariff conversations that are occurring. So until these units sell, what we've been able to do is create a rental pool program that can actually allow either the developer and/or people that are actually purchasing from the developer an income that's coming from that rental pool.

Speaker #2: Sometimes it's just a function of treating the developer as the landlord and taking that off their hands. That way, they don't have a big monthly commitment that they have to manage on all fronts.

Joseph Nakhla: Sometimes it's just a function of treating the developer as the landlord and taking that off their hands. That way, they don't have a big monthly commitment that they have to do on all fronts. Obviously, once they, let's say, the developer's got 250 units and they sold 150, but they're sitting on 100 units, essentially every month, they are responsible. The developer is responsible as an owner of those 100 units to actually pay the monthly fees that per rata to those units. That becomes a bigger issue for their LPs and their operating companies. We're actually starting to take some of that off their hand to actually put them in a market and create a rental pool program. We're also helping them put together what they call a rental guarantee program.

Sometimes it's just a function of treating the developer as the landlord and taking that off their hands. That way, they don't have a big monthly commitment that they have to do on all fronts. Obviously, once they, let's say, the developer's got 250 units and they sold 150, but they're sitting on 100 units, essentially every month, they are responsible. The developer is responsible as an owner of those 100 units to actually pay the monthly fees that per rata to those units. That becomes a bigger issue for their LPs and their operating companies. We're actually starting to take some of that off their hand to actually put them in a market and create a rental pool program. We're also helping them put together what they call a rental guarantee program.

Speaker #2: Obviously, once they, let's say, developers got 250 units and they sold 150, but they're sitting on 100 units. Essentially, every month they are responsible.

Speaker #2: The developer is responsible, as the owner of those 100 units, to actually pay the monthly fees that are prorated to those units. And so that becomes a bigger issue for their LPs and their operating company.

Speaker #2: So, we're actually starting to take some of that off their hands to put them in a market and create a rental pool program, where we're also helping them put together what they call a rental guarantee program. That is essentially being able to, for the first 12 months, 18 months, or 24 months, turn around and actually guarantee the buyer who is purchasing the unit from them.

Joseph Nakhla: That is essentially being able to, for the first 12 months, 18 months, 24 months, turn around and actually guarantee the buyer who is purchasing the unit from them. The developer will guarantee that this unit will generate X amount of dollars over the next 12 months, 18 months, 24 months. That program is actually on its way. This is to make the units more enticing, or make the homes more enticing, for the investor types to actually purchase those units. We're also going through a significant number of condo conversion consulting services. This is a fancy way of saying a lot of developers that broke ground are going back to their cities, their counties, and actually renegotiating to actually convert the condo development that they started into a rental development. A lot of those developers don't really know much about managing and operating rentals.

That is essentially being able to, for the first 12 months, 18 months, 24 months, turn around and actually guarantee the buyer who is purchasing the unit from them. The developer will guarantee that this unit will generate X amount of dollars over the next 12 months, 18 months, 24 months. That program is actually on its way. This is to make the units more enticing, or make the homes more enticing, for the investor types to actually purchase those units. We're also going through a significant number of condo conversion consulting services. This is a fancy way of saying a lot of developers that broke ground are going back to their cities, their counties, and actually renegotiating to actually convert the condo development that they started into a rental development. A lot of those developers don't really know much about managing and operating rentals.

Speaker #2: So the developer will guarantee that this unit will generate X amount of dollars over the next 12 months, 18 months, and 24 months. That program is actually on its way.

Speaker #2: This is to make the units more enticing or make the homes more enticing for the investor types to actually purchase those units. We're also going through a significant number of condo conversion consulting services.

Speaker #2: This is a fancy way of saying a lot of developers that broke ground are going back to their cities, their counties, and actually renegotiating to convert the condo development that they started into a rental development.

Speaker #2: A lot of those developers don't really know much about managing and operating rentals. So they come to us, and we help them navigate through the requirements and the budgets that affect them, as they're going to be the landlord, essentially, of that.

Joseph Nakhla: They come to us and we help them navigate through the requirements, help them navigate through the budgets that affect them as they're going to be the landlord, essentially, of that, and also help them through the composition of what these need to look like, what the amenities should look like. We've also launched our own software platform that is essentially Tribe Home, but just purely for institutional rental. It's tailored for that type of larger community that's all rental, owned by a REIT and/or a big developer or even a group of LPs or family offices. It has all the documents, updates, maintenance requests, and amenity bookings. All the stuff that we're very famous for on the condo side is all now available on the rental platforms that we're supporting.

They come to us and we help them navigate through the requirements, help them navigate through the budgets that affect them as they're going to be the landlord, essentially, of that, and also help them through the composition of what these need to look like, what the amenities should look like. We've also launched our own software platform that is essentially Tribe Home, but just purely for institutional rental. It's tailored for that type of larger community that's all rental, owned by a REIT and/or a big developer or even a group of LPs or family offices. It has all the documents, updates, maintenance requests, and amenity bookings. All the stuff that we're very famous for on the condo side is all now available on the rental platforms that we're supporting.

Speaker #2: And also help them through the composition of what these need to look like, what the amenities should look like. And then we've also launched our own software platform that is called essentially Tribe Home, but just purely for institutional rental.

Speaker #2: It's tailored for that type of larger community that's all rental, owned by a REIT and/or big developer, or even a group of LPs or family offices.

Speaker #2: It has all the documents, updates, maintenance requests, and amenity booking. So all the stuff that we're very famous for on the condo side is all now available on the rental platforms that we're supporting.

Speaker #2: And obviously, it is designed with all of our property managers in mind in terms of ensuring that they can do more with less.

Joseph Nakhla: It is designed with all of our property managers in mind in terms of ensuring that they can do more with less. Next slide, please. Market update. A lot of good questions about where we're at. I mean, look, there is no doubt that pre-sale, this would be when a developer is planning on building a 200-unit building, has a sales center, and the project is already started, but they're in the middle of selling. That has slowed down. There's just no doubt about it. The impact of that on us, once they break ground, they have to deliver because they've already borrowed the money for construction loans and nobody just halfway through the project will stop. Anything that has a crane and already broke ground will complete.

It is designed with all of our property managers in mind in terms of ensuring that they can do more with less. Next slide, please. Market update. A lot of good questions about where we're at. I mean, look, there is no doubt that pre-sale, this would be when a developer is planning on building a 200-unit building, has a sales center, and the project is already started, but they're in the middle of selling. That has slowed down. There's just no doubt about it. The impact of that on us, once they break ground, they have to deliver because they've already borrowed the money for construction loans and nobody just halfway through the project will stop. Anything that has a crane and already broke ground will complete.

Speaker #2: Next slide, market update. A lot of good questions, no doubt, about where we're at. I mean, look, there is please. So, pre-sale, this would be when the developer is planning on building a 200-unit building and has a sales center.

Speaker #2: And the project is already started, but they're in the middle of selling. That has slowed down; there's just no doubt about it. And the impact of that on us, once they break ground, they have to deliver because they've already borrowed the money for construction loans, and nobody just halfway through the project will stop.

Speaker #2: So anything that has a crane and has already broken ground will complete. What we're doing now is taking this rental product that we've got to actually give the developers peace of mind and/or help them with a big pivot if they're moving from condo to rental.

Joseph Nakhla: What we're doing now is we're taking these rental products that we've got to actually give the developers a peace of mind and/or help them with a big pivot if they're moving from condo to rental. In both cases, we obviously generate revenue. We're in the business of managing these buildings one way or the other. There are still all those developers that are utilizing our software. The market dynamic is not really impacting the reality that there is a national housing shortage still. Despite what you're hearing about, yeah, there are a lot of rental units coming into the market, and it does impact the rate. It does not impact the fact that we still have a massive shortage in housing in this country.

What we're doing now is we're taking these rental products that we've got to actually give the developers a peace of mind and/or help them with a big pivot if they're moving from condo to rental. In both cases, we obviously generate revenue. We're in the business of managing these buildings one way or the other. There are still all those developers that are utilizing our software. The market dynamic is not really impacting the reality that there is a national housing shortage still. Despite what you're hearing about, yeah, there are a lot of rental units coming into the market, and it does impact the rate. It does not impact the fact that we still have a massive shortage in housing in this country.

Speaker #2: In both cases, we obviously generate revenue. We're in the business of managing these buildings one way or the other. There are still all those developers that are utilizing our software.

Speaker #2: So the market dynamic is not really impacting the reality that there is a national housing shortage still. So despite what you're hearing about, oh, there's a lot of rental units coming into the market.

Speaker #2: Yeah, it does impact the rates. It does not impact the fact that we still have a massive shortage in housing in this country. So, the opportunity for us really is converting those condos to rental, taking that inventory off the developer and creating portfolios that generate revenue for them.

Joseph Nakhla: The opportunity for us really is converting those condos to rental, taking that inventory off the developer, and creating portfolios that generate revenue for them. Think of it as asset management, essentially, for those developers and a number of those rental pool programs that we discussed earlier. That's why we've launched all these new products. The big advantage we have, obviously, is that we have the relationship with the developers. We're the first call to get when they're dealing with either slowing down of the pre-sale and/or completion of a building that they haven't sold all of it, and we actually help them with solutions to help them with the cash flow issues. We obviously got those products that you're familiar with now, the PropTech products that we've taken to the market, and we're going to keep adding more to that.

The opportunity for us really is converting those condos to rental, taking that inventory off the developer, and creating portfolios that generate revenue for them. Think of it as asset management, essentially, for those developers and a number of those rental pool programs that we discussed earlier. That's why we've launched all these new products. The big advantage we have, obviously, is that we have the relationship with the developers. We're the first call to get when they're dealing with either slowing down of the pre-sale and/or completion of a building that they haven't sold all of it, and we actually help them with solutions to help them with the cash flow issues. We obviously got those products that you're familiar with now, the PropTech products that we've taken to the market, and we're going to keep adding more to that.

Speaker #2: Think of it as asset management, essentially, for those developers and a number of those rental pool programs that we discussed earlier. That’s why we’ve launched all these new products.

Speaker #2: The big advantage we have, obviously, is that we have the relationship with the developers. We're the first call to get when they're dealing with either slowing down of the pre-sale and/or completion of a building that they haven't sold all of it.

Speaker #2: And we actually help them with solutions to address their cash flow issues. We obviously have those products that you're familiar with now, the Proptech products that we've taken to market.

Speaker #2: And we're going to keep adding more to that. Really, we're very well known to be the ones— a one-stop shop. Every single piece of the services I laid out to you today, really, there's nobody in the country that can actually stand and illustrate the value of that to that developer, both on the rental side and on the condo side, not alone on a national level.

Joseph Nakhla: Really, we're very well known to be the ones, a one-stop shop. Every single piece of the services I laid out to you today, really, there's nobody in the country that can actually stand and actually illustrate the value of that to that developer, both on the rental side, on the condo side, not alone on a national level. That's what's most unique about our organization. That's why we are frontline, essentially, dealing and helping the developers deal with some of these challenges that they're facing. Next slide, please. Growth, 2026, continuous profitability focus. I'm sure there's a lot of questions about, are there more levers for us to leverage while we're growing organically and non-organically next year? The quick answer is yes. Big AI push within the delivery metrics I shared earlier.

Really, we're very well known to be the ones, a one-stop shop. Every single piece of the services I laid out to you today, really, there's nobody in the country that can actually stand and actually illustrate the value of that to that developer, both on the rental side, on the condo side, not alone on a national level. That's what's most unique about our organization. That's why we are frontline, essentially, dealing and helping the developers deal with some of these challenges that they're facing. Next slide, please. Growth, 2026, continuous profitability focus. I'm sure there's a lot of questions about, are there more levers for us to leverage while we're growing organically and non-organically next year? The quick answer is yes. Big AI push within the delivery metrics I shared earlier.

Speaker #2: That's what's most unique about our organization. So, that's why we are frontline, essentially dealing with and helping the developers tackle some of the challenges they're facing.

Speaker #2: Next slide. So, growth 26; profitability, continuous profitability focus. I'm sure there are a lot of questions about whether there are more levers for us to leverage while we're growing organically and non-organically next year?

Speaker #2: And the quick answer is yes. There's a big AI push within the delivery metrics I shared earlier. It needs to impact our gross margin and significantly improve our customer satisfaction in terms of interaction, which will open up more doors for us from a revenue point of view.

Joseph Nakhla: It needs to impact our gross margin and significantly improve our customer satisfaction in terms of interaction, which will open up more doors for us from a revenue point of view. We'll continue to increase our organic growth. That's an area that I think the market is ripe for. There are some challenges that some of our competitors are dealing with, either lack of technology and/or inability to navigate through the difficult times in the markets. We just continue to grow. We're feeling really, really good about this. At the end of the day, more and more people are moving into the types of homes that we're servicing, either moving into these rental communities and/or moving into these condo communities. That's not going to slow down anytime soon. That is the future of living, and we feel incredibly blessed to be in that spot.

It needs to impact our gross margin and significantly improve our customer satisfaction in terms of interaction, which will open up more doors for us from a revenue point of view. We'll continue to increase our organic growth. That's an area that I think the market is ripe for. There are some challenges that some of our competitors are dealing with, either lack of technology and/or inability to navigate through the difficult times in the markets. We just continue to grow. We're feeling really, really good about this. At the end of the day, more and more people are moving into the types of homes that we're servicing, either moving into these rental communities and/or moving into these condo communities. That's not going to slow down anytime soon. That is the future of living, and we feel incredibly blessed to be in that spot.

Speaker #2: And that will continue to increase our organic growth. That's an area that I think the market is ripe for. There are some challenges that some of our competitors are dealing with, either a lack of technology and/or an inability to navigate through the difficult times in the markets.

Speaker #2: And we just continue to grow. So, we're feeling really, really good about this. At the end of the day, more and more people are moving into the types of homes that we're servicing, either moving into these rental communities and/or moving into these condo communities.

Speaker #2: And that's not going to slow down anytime soon. That is the future of living, and we feel incredibly blessed to be in that spot.

Speaker #2: We see a direct path to significantly increasing our revenue and delivering gross margins that the industry is not familiar with. Next slide, please.

Joseph Nakhla: We see a direct path to significantly increasing our revenue and significantly delivering gross margins that the industry is not familiar with. Next slide, please. Great, that concludes our presentation. Happy to take any questions. Hatha, I'll hand it back to you.

We see a direct path to significantly increasing our revenue and significantly delivering gross margins that the industry is not familiar with. Next slide, please. Great, that concludes our presentation. Happy to take any questions. Hatha, I'll hand it back to you.

Speaker #2: Great. That concludes our presentation. Happy to take any questions. Happy to hand it back to you. Yes, sir. We will now open the call to questions. Just a reminder that questions will be given priority to equity analysts.

Operator: Joseph, we will now open the call to questions. Just a reminder that questions will be given priority to equity analysts. First question comes from Daniel Rosenberg from Paradigm. He asked, are you seeing any impacts from softness in the real estate sector? We see some developers convert their unsold inventory to rentals. Would this be a headwind or tailwind for Tribe?

Speaker #2: First question comes from Daniel Rosenberg from Paradigm. He asked, "Are you seeing any impacts from softness in the real estate sector? We see some developers convert their unsold inventory to rentals; would this be a headwind or tailwind for Tribe?"

Speaker #3: Yeah, that's fair. I think probably the question was written before I spent the time I did on that slide. So, we were thinking the same way.

Scott Ullrich: Yeah. That's fair. I think probably the question was written before I spent the time I did on that slide. We were thinking the same way. Thanks for that, Daniel. We're seeing opportunities, really. Like I mentioned, we are the first call usually to be made when a developer contemplates and/or decides to convert from condo to rental. We have a playbook, essentially, for that to help them navigate through it, ensure that they navigate through, again, the highest NOI, net operating income per square foot, essentially. They may convert those rental in the future back to condos. Sometimes that is the arrangement. We help them with that. We are seeing that as a big opportunity.

Joseph Nakhla: Yeah. That's fair. I think probably the question was written before I spent the time I did on that slide. We were thinking the same way. Thanks for that, Daniel. We're seeing opportunities, really. Like I mentioned, we are the first call usually to be made when a developer contemplates and/or decides to convert from condo to rental. We have a playbook, essentially, for that to help them navigate through it, ensure that they navigate through, again, the highest NOI, net operating income per square foot, essentially. They may convert those rental in the future back to condos. Sometimes that is the arrangement. We help them with that. We are seeing that as a big opportunity.

Speaker #3: So, thanks for that, Daniel. Yeah, we're seeing opportunities, really. Like I mentioned in the first call, we usually get calls from developers—we are typically the first call made when a developer contemplates and/or decides to convert from condo to rental.

Speaker #3: And we deliver—we have a playbook, essentially, for that to help them navigate through it to ensure that they achieve A, again, the highest NOI, not operating income per square foot, essentially, and they may convert those rentals in the future back to condos.

Speaker #3: And sometimes that is the arrangement. So we help them with that. We are seeing that as a big opportunity.

Speaker #2: Any Joseph? We also have Essie on the call. Essie's passed away from.

Operator: Thank you, Joseph. We also have Isai on the call. Isai Tesfaye from Stifel.

Speaker #2: steeple. Hey, guys.

Isai Tesfaye: Hey, guys. This is Isai speaking on behalf of Suzanne. I guess first question, maybe if you can speak to just the pipeline generally, and maybe talk about new build deliveries.

Essey Tesfay: Hey, guys. This is Isai speaking on behalf of Suzanne. I guess first question, maybe if you can speak to just the pipeline generally, and maybe talk about new build deliveries.

Speaker #4: This is Essie speaking on behalf of Suzanne. I guess the first question, maybe if you can speak to just the pipeline generally and maybe talk about new builds.

Speaker #4: deliveries. Yeah, great

Scott Ullrich: Yeah, great question. For those that are curious, new build isn't the largest pipe of revenue for us. While we spoke a lot about it and a lot of people are kind of concerned or curious about the impact of the new starts or new completions, it isn't. At the end of the day, we still generally generate most of our revenue from existing communities that either leave their traditional property management company and come to us, or continue to grow with us. It could be multi-phase projects. That being said, what we're seeing is just slight delays. It's actually easing up a bit. I had been on this call explaining how frustrating it was for a lot of developers coming out of COVID, slow down and getting permits. We moved into one of the lack of finding labor, essentially.

Joseph Nakhla: Yeah, great question. For those that are curious, new build isn't the largest pipe of revenue for us. While we spoke a lot about it and a lot of people are kind of concerned or curious about the impact of the new starts or new completions, it isn't. At the end of the day, we still generally generate most of our revenue from existing communities that either leave their traditional property management company and come to us, or continue to grow with us. It could be multi-phase projects. That being said, what we're seeing is just slight delays. It's actually easing up a bit. I had been on this call explaining how frustrating it was for a lot of developers coming out of COVID, slow down and getting permits. We moved into one of the lack of finding labor, essentially.

Speaker #3: So for those that are curious, new build isn't the largest source of revenue for us. While we spoke a lot about it and a lot of people are kind of concerned or curious about the impact of the new starts, new completions, or new completions, it isn't, at the end of the day, we still generally generate most of our revenue from existing communities that either leave their traditional property management company and come to us or continue to grow with us.

Speaker #3: It could be multi-phase projects. That being said, what we're seeing is just slight delays. It's actually easing up a bit. I've been on this call explaining how frustrating it was for a lot of developers coming out of COVID, the slowdown, and getting permits.

Speaker #3: And then we moved into one of the lack of finding labor, essentially. There were massive labor shortages, and a lot of developers were kind of getting a little bit of the slower end of that.

Scott Ullrich: There were massive labor shortages, and a lot of developers were kind of getting a little bit of the slower end of that. I'm actually seeing normalization of that. We're seeing slight delays in some of the completion of these projects, but actually nothing too significant. Of course, I'm saying that as we dealt with a couple of quarters of delays, just because of our size now, because we're much larger now, we're dealing with a much larger number of projects. There are some delays there, but not big stuff. At worst, it's a quarter, 90 days, maybe 180 days at worst. We haven't seen much worse than that.

There were massive labor shortages, and a lot of developers were kind of getting a little bit of the slower end of that. I'm actually seeing normalization of that. We're seeing slight delays in some of the completion of these projects, but actually nothing too significant. Of course, I'm saying that as we dealt with a couple of quarters of delays, just because of our size now, because we're much larger now, we're dealing with a much larger number of projects. There are some delays there, but not big stuff. At worst, it's a quarter, 90 days, maybe 180 days at worst. We haven't seen much worse than that.

Speaker #3: I'm actually seeing normalization of that. We're seeing slight delays in some of the completion of these projects, but actually nothing too significant. Of course, I'm saying that as we dealt with a couple of quarters of delays.

Speaker #3: But that's just because of our size now, as we're much larger now. We're dealing with a much larger number of projects, and there are some delays there, but not big.

Speaker #3: Stuff at worst, it's a quarter—90 days, maybe 180 days at worst. We haven't seen much worse than that.

Speaker #4: Gotcha. That's perfect. And maybe following up on the competitive landscape, could you share your thoughts on any changes in that area?

Isai Tesfaye: Gotcha. That's perfect. Maybe following up on the competitive landscape, can you get your thoughts on the competitive landscape and if there's any changes, the pace of competitive displacement, how that strategy is going, and what's driving that today?

Essey Tesfay: Gotcha. That's perfect. Maybe following up on the competitive landscape, can you get your thoughts on the competitive landscape and if there's any changes, the pace of competitive displacement, how that strategy is going, and what's driving that today?

Speaker #4: The pace of competitive displacement and how that strategy is going, and what's driving it.

Speaker #4: that today? Yeah.

Scott Ullrich: Yeah. I mean, we are, I'll be direct and answer this way. Our presence has been very disruptive, there's no doubt about it. We were first the small guys coming in, we're now national. We're on the rental side, considered to be second largest in the country. On the condo side, third largest in the country. It's difficult to ignore us. We are uncompromising in ensuring we deliver a high level of service, and we like to get paid properly for it because we think a race to the bottom is not a really good strategy for the industry. If anything, we think there's ways to us, and we've been proving that quarter over quarter in terms of dollars per square foot. We can still deliver fantastic value to our landlords, our condo owners, and condo corporations.

Joseph Nakhla: Yeah. I mean, we are, I'll be direct and answer this way. Our presence has been very disruptive, there's no doubt about it. We were first the small guys coming in, we're now national. We're on the rental side, considered to be second largest in the country. On the condo side, third largest in the country. It's difficult to ignore us. We are uncompromising in ensuring we deliver a high level of service, and we like to get paid properly for it because we think a race to the bottom is not a really good strategy for the industry. If anything, we think there's ways to us, and we've been proving that quarter over quarter in terms of dollars per square foot. We can still deliver fantastic value to our landlords, our condo owners, and condo corporations.

Speaker #3: I mean, we are—I'll be direct and answer this way. Our presence has been very disruptive. There's no doubt about it. We were first a small guy coming in.

Speaker #3: We're now national. We're on the rental side, considered to be the second largest in the country, and on the condo side, the third largest in the country.

Speaker #3: So it's difficult to ignore us. We are uncompromising in ensuring we deliver a high level of service, and we like to get paid properly for it because we think that raising the bottom is not a really good strategy for the industry.

Speaker #3: If anything, we think there are ways to us, and we've been proven that quarter over quarter in terms of dollars per square foot. We can still deliver fantastic value to our landlords, condo owners, and condo corporations.

Speaker #3: We can make sure that their monthly fees don't escalate and continue to grow while we're still getting paid fairly as an organization. So we're seeing an effort by some of our competitors to really just raise to the bottom, and we're holding our own.

Scott Ullrich: We can make sure that their monthly fees do not escalate and continue to grow while we are still getting paid fairly as an organization. We are seeing an effort by some of our competitors to really just race to the bottom. We are holding our own, and we are saying we are not going to be the company that is going to lower its rates for the sake of lowering its rates. We are quite pleased to see that when we even traded up, as Scott mentioned earlier, we have been trading up in terms of margin. As competitors fear us within the context of wanting to compete on something other than our service delivery, they like to compete up pricing. We are not too concerned. We continue to deliver value for our homeowners. Think about it.

We can make sure that their monthly fees do not escalate and continue to grow while we are still getting paid fairly as an organization. We are seeing an effort by some of our competitors to really just race to the bottom. We are holding our own, and we are saying we are not going to be the company that is going to lower its rates for the sake of lowering its rates. We are quite pleased to see that when we even traded up, as Scott mentioned earlier, we have been trading up in terms of margin. As competitors fear us within the context of wanting to compete on something other than our service delivery, they like to compete up pricing. We are not too concerned. We continue to deliver value for our homeowners. Think about it.

Speaker #3: And we're saying, "No, we're not going to be the company that's going to lower its rates for the sake of lowering its rates." We're quite pleased to see that when we even traded up, as Scott mentioned earlier, we've been trading up in terms of margin.

Speaker #3: So, as competitors fear us within the context of wanting to compete on something other than our service delivery, they'd like to compete on pricing, and we're not too concerned.

Speaker #3: We continue to deliver value for our homeowners. Think about it. If you're a homeowner upset that they're paying their contract too much—nobody ever wakes up in the morning very upset about their property management or their maintenance fees. Condo owners, and maybe many of our audience here, have experienced their maintenance fees going up for no good reason, or without perceived value coming back.

Scott Ullrich: If you're a home condo owner, and maybe many of our audience here have experienced that, nobody ever wakes up in the morning very upset that they're paying their property management contract too much. Everybody wakes up upset that their maintenance fees are going up for no good reason, or without perceived value coming back. Our job is to make sure that the buildings are well managed, they're healthy, money's being allocated properly to the projects. If your community's healthy, you're not really too concerned, and you're not paying significantly more in your maintenance fees, you're not really too concerned about how much your property management company is paid. If anything, you want to make sure that they're well paid and well compensated. That's kind of our position on it.

If you're a home condo owner, and maybe many of our audience here have experienced that, nobody ever wakes up in the morning very upset that they're paying their property management contract too much. Everybody wakes up upset that their maintenance fees are going up for no good reason, or without perceived value coming back. Our job is to make sure that the buildings are well managed, they're healthy, money's being allocated properly to the projects. If your community's healthy, you're not really too concerned, and you're not paying significantly more in your maintenance fees, you're not really too concerned about how much your property management company is paid. If anything, you want to make sure that they're well paid and well compensated. That's kind of our position on it.

Speaker #3: So our job is to make sure that the buildings are well managed, they're healthy, money is being allocated properly to the projects, and if your community is healthy, you're not really too concerned. Plus, you're not paying significantly more in your maintenance fees; you're not really too concerned about how much your property management company is paid. If anything, you want to make sure that they're well paid and well compensated.

Speaker #3: So that's kind of our position on it.

Isai Tesfaye: That's great. Thirdly, maybe on M&A, I know last quarter you guys spoke on synergies from recent M&A and sort of speaking, I guess, more specifically on the cross-selling with the acquired capabilities. I was curious to know what cross-sell traction has looked like since, if it's early days, and just overall how that's going.

Speaker #4: Great. That's great. And thirdly, maybe, okay. That's on M&A. I know last quarter you guys spoke on synergies from recent M&A and, sort of speaking, I guess, more specifically on the cross-selling with the acquired capabilities.

Essey Tesfay: That's great. Thirdly, maybe on M&A, I know last quarter you guys spoke on synergies from recent M&A and sort of speaking, I guess, more specifically on the cross-selling with the acquired capabilities. I was curious to know what cross-sell traction has looked like since, if it's early days, and just overall how that's going.

Speaker #4: And so I was curious to know what cross-sell traction has looked like since. If it's early days and just overall how that's going.

Scott Ullrich: It's good to paint the picture. We've obviously, in the last 18 months, been active in increasing our footprint in Ontario. Since then, Ontario has grown to be almost half of our revenue as an organization. That's a market that we didn't have much presence in, had some presence, very small, a couple of years ago. Now that's changed significantly. We're going to double down on our growth there. We think our type of service delivery, both on the rental and on the condo side, is quite unique. We're just scratching the surface on that. From a cross-selling point of view, we've acquired a single-unit management firm-based agency out of BC that actually we're quite pleased with, where, A, on its own, it's performing quite well.

Joseph Nakhla: It's good to paint the picture. We've obviously, in the last 18 months, been active in increasing our footprint in Ontario. Since then, Ontario has grown to be almost half of our revenue as an organization. That's a market that we didn't have much presence in, had some presence, very small, a couple of years ago. Now that's changed significantly. We're going to double down on our growth there. We think our type of service delivery, both on the rental and on the condo side, is quite unique. We're just scratching the surface on that. From a cross-selling point of view, we've acquired a single-unit management firm-based agency out of BC that actually we're quite pleased with, where, A, on its own, it's performing quite well.

Speaker #3: To paint the picture, that was the situation ago. And now that's changed significantly. We're going to double down on our growth there. We believe our type of service delivery, both in the rental and condo sides, is quite unique.

Speaker #3: Ontario. Since then, Ontario has grown to be almost half of our revenue as an organization. That's a market that we didn't have much presence in. At some point, we're increasing our footprint in a market where our presence was very small just a couple of years ago.

Speaker #3: And we're just scratching the surface on that. And then, from a cross-selling point of view, we've acquired a single unit management firm, Agencies, out of BC, that's actually we're quite pleased with.

Speaker #3: We're A. On its own, it's performing quite well. But to complete the picture on what I was saying earlier about taking products and services to developers to help them take these individual units that haven't been sold, put them in a bigger pool of inventory, and be very active with that.

Scott Ullrich: To complete the picture on what I was saying earlier about taking products and services to developers to help them take these individual units that haven't been sold, put them in a bigger pool of inventory, and be very active with that, that cross-selling function is well on its way. The leader of Ace Agencies has been integrated nicely into our executive management here, and has got more responsibilities than just Ace Agencies, the single unit, the single unit division of ours. That's going quite well. We've got a great, great team in DMSI, a company that we acquired out of Ontario. That team, the operating team there, has got a significant amount of experience and really interesting products that we can take into our BC products.

To complete the picture on what I was saying earlier about taking products and services to developers to help them take these individual units that haven't been sold, put them in a bigger pool of inventory, and be very active with that, that cross-selling function is well on its way. The leader of Ace Agencies has been integrated nicely into our executive management here, and has got more responsibilities than just Ace Agencies, the single unit, the single unit division of ours. That's going quite well. We've got a great, great team in DMSI, a company that we acquired out of Ontario. That team, the operating team there, has got a significant amount of experience and really interesting products that we can take into our BC products.

Speaker #3: The function is well on its way. The cross-selling leader of ACE Agencies has been integrated nicely into our executive management here and has taken on more responsibilities than just ACE Agencies, the single unit division of ours.

Speaker #3: So, that's going quite well. We've got a great, great team in DMS, Dell Management Solutions, a company that we acquired out of Ontario. That operating team there has a significant amount of experience and really interesting products that we can take into our BC products.

Speaker #3: We are in the midst, quite frankly, of a large amalgamation project that's going to yield us significant levers on the efficiency side, but also on our ability to take some of these products and services under one umbrella branding. Compliance-wise, we will be able to sell products and services into both markets that come from the different divisions.

Scott Ullrich: We are in the midst, quite frankly, of a large amalgamation project that's going to yield us significant not only levers on the efficiency side, but also on our ability to take some of these products and services under one umbrella, branding, and compliance-wise to be able to sell products and services into both markets that come from the different divisions. I'd say early days on that, but we're quite excited about that lever as well.

We are in the midst, quite frankly, of a large amalgamation project that's going to yield us significant not only levers on the efficiency side, but also on our ability to take some of these products and services under one umbrella, branding, and compliance-wise to be able to sell products and services into both markets that come from the different divisions. I'd say early days on that, but we're quite excited about that lever as well.

Speaker #3: I'd say it's early days on that, but we're quite excited about that lever as well.

Speaker #4: Okay, great. Thank you so much. And I’ll pass the line.

Isai Tesfaye: Great. Thank you so much. I'll pass the line.

Essey Tesfay: Great. Thank you so much. I'll pass the line.

Speaker #3: Thank you.

Scott Ullrich: Thank you.

Joseph Nakhla: Thank you.

Speaker #1: So, Vanessa, our second question from capital allocation priorities now that you're Danny Rosenberg is: What are your approaching EBITDA positive for the year?

Operator: Joseph and Isai. Our second question from Daniel Rosenberg is, What are your capital allocation priorities now that you're approaching EBITDA positive for the year?

Scott Ullrich: Yeah, we've still continued to have levers on the gross margin improvement side, so that's good news. We're quite excited about that. I kind of hinted to the amalgamation now, but there's more products, more projects in our midst with that that will impact our EBITDA numbers. That's before even AI gets meaningfully deployed. On the capital expenditure side, I would say not monster investments, but I would say material investments in our AI platform is going to go into this. We are currently working, it's okay to say it, with Microsoft on a pretty exciting plan that we'll be speaking about in the near future. It's an upgrade to our data structure, it's an upgrade to our way we deploy software.

Joseph Nakhla: Yeah, we've still continued to have levers on the gross margin improvement side, so that's good news. We're quite excited about that. I kind of hinted to the amalgamation now, but there's more products, more projects in our midst with that that will impact our EBITDA numbers. That's before even AI gets meaningfully deployed. On the capital expenditure side, I would say not monster investments, but I would say material investments in our AI platform is going to go into this. We are currently working, it's okay to say it, with Microsoft on a pretty exciting plan that we'll be speaking about in the near future. It's an upgrade to our data structure, it's an upgrade to our way we deploy software.

Speaker #3: Got it. We're still continuing to... Yeah, we have levers on the gross margin improvement side, so that's good news. We're quite excited about that. I kind of hinted at the amalgamation now, but there are small product projects in our midst with that that will impact our EBITDA numbers.

Speaker #3: And that's before even AI gets meaningfully deployed. On the capital expenditure side, I would say not monster investments, but I would say material investments in our AI platform are going to go into this.

Speaker #3: Working, and it's okay to say it: We are currently with Microsoft on a pretty exciting plan that we will speak about in the near future.

Speaker #3: And that's an upgrade to our data structure. It's an upgrade to the way we deploy software. It's also going to be a big upgrade to the user experience with our platform in terms of rentals, tenants, and/or landlords.

Scott Ullrich: It's also going to be a big upgrade to the user experience with our platform in terms of rental tenants and/or landlords, and also on the condo side. That's probably an area that we're going to be making some investments in. I think it's a really high-yielding ROI type of investments.

It's also going to be a big upgrade to the user experience with our platform in terms of rental tenants and/or landlords, and also on the condo side. That's probably an area that we're going to be making some investments in. I think it's a really high-yielding ROI type of investments.

Speaker #3: And also on the condo side. So, that's probably an area that we're going to be making some investments in, and I think it's a really high-yielding ROI type of investment.

Speaker #1: And Joseph, our final question from Danny Rosenberg of Paradigm Capital is, where are you with integration efforts? Are there more incremental savings on the cost side to be recognized?

Operator: Thank you, Joseph. Our final question from Daniel Rosenberg of Paradigm Capital is, where are you with integration efforts? Are there more incremental savings on the cost side to be recognized?

Speaker #3: Yeah, there is. We won't give numbers out, but there is. Scott and I have been working on that plan for a couple of quarters now.

Scott Ullrich: Yeah, there is. We won't give numbers out, but there is. Scott and I have been working on that plan for a couple of quarters now. We're at the end of it. As you can imagine, when you're working on these amalgamation integration projects, despite the fact that you may conclude the project, you don't see the benefit of the project for a while. In some cases, you've got salaries that get paid over a specific period. You don't start seeing the benefits of it for another quarter or two. I will say this. We've got more levers to pull. We haven't seen the benefit of a lot of the integrations we've done. Scott articulated and gave, I think, a good macro view of our last three years, and then investments we've made, improvement in our EBITDA, improvement in our revenues, and gross margins.

Joseph Nakhla: Yeah, there is. We won't give numbers out, but there is. Scott and I have been working on that plan for a couple of quarters now. We're at the end of it. As you can imagine, when you're working on these amalgamation integration projects, despite the fact that you may conclude the project, you don't see the benefit of the project for a while. In some cases, you've got salaries that get paid over a specific period. You don't start seeing the benefits of it for another quarter or two. I will say this. We've got more levers to pull. We haven't seen the benefit of a lot of the integrations we've done. Scott articulated and gave, I think, a good macro view of our last three years, and then investments we've made, improvement in our EBITDA, improvement in our revenues, and gross margins.

Speaker #3: We're at the end of it. As you can imagine, when you're working on these amalgamation integration projects, despite the fact that you may conclude the project, you don't see the benefit of the project for a while.

Speaker #3: In some cases, you've got salaries that get paid over a specific period. You don't start seeing the benefits of it for another quarter or two.

Speaker #3: But I will say this: we've got more levers to pull. We haven't seen the benefit of a lot of the integrations we've done. Scott articulated and gave, I think, a good macro view of our last three years.

Speaker #3: And then, that's investments we've made: the improvement in our EBITDA, improvement in our revenues, and gross margins. You'll see significant improvements in the next year as.

Scott Ullrich: You'll see significant improvements in the next year as well.

You'll see significant improvements in the next year as well.

Speaker #3: well. And Joseph?

Operator: Thank you, Joseph. We have a few questions from the audience. The first one is, congratulations on the new rental programs. Could you specify what cities these rental programs have been rolled out to, and if this will be a national product?

Speaker #1: We have a few questions from the audience. The first one is: Congratulations on the new rental programs. Could you specify what cities these rental programs have been rolled out to and if this will be a national initiative?

Speaker #1: product? Yeah, I'll start

Scott Ullrich: Yeah. I'll start with the easier part of the question. Yes, this will be national. Where we're starting, the single unit, we're going to our backyard first. We've deployed that in BC. However, the asset management program, I think Scott and his team have a winner to out east already. We haven't seen the results of that yet revenue-wise, but the contracts are done. We're seeing benefits there as well. The goal is to take all these products and launch them nationally. Now, it is important to explain that despite the fact that us in Vancouver and Toronto, we think the whole world is revolving around us, there are many, many markets that are actually doing really well and not experiencing some of the challenges that we're experiencing in those specific two markets. We are launching that product. We think we're under-penetrated in Alberta.

Joseph Nakhla: Yeah. I'll start with the easier part of the question. Yes, this will be national. Where we're starting, the single unit, we're going to our backyard first. We've deployed that in BC. However, the asset management program, I think Scott and his team have a winner to out east already. We haven't seen the results of that yet revenue-wise, but the contracts are done. We're seeing benefits there as well. The goal is to take all these products and launch them nationally. Now, it is important to explain that despite the fact that us in Vancouver and Toronto, we think the whole world is revolving around us, there are many, many markets that are actually doing really well and not experiencing some of the challenges that we're experiencing in those specific two markets. We are launching that product. We think we're under-penetrated in Alberta.

Speaker #3: With the easier part of the question, yes, this will be national. We're starting with a single unit where we're going to our backyard first, so we've deployed that in BC.

Speaker #3: Asset management program. However, I think Scott and his team have a win or two out East already. We haven't seen the results of that yet, revenue-wise, but the contracts are done.

Speaker #3: So, we’re seeing benefits there as well. But the goal is to take all these products and launch them nationally. Now, it is important to explain that despite the fact that us in Vancouver and Toronto think the whole world is revolving around us.

Speaker #3: There are many, many markets that are actually doing really well and not experiencing some of the challenges that we're facing in those specific two markets.

Speaker #3: So we are launching that product. We think we're underpenetrated in Alberta. We love that market. We have big plans for '26 for Alberta.

Scott Ullrich: We love that market. We have big plans in 2026 for Alberta. That is an area that we're going to be going after. We think outside of the traditional downtown core of Toronto, there are a lot of good opportunities that we're starting to engage with developers who are doing some interesting work there. Think of us with those products being national, slightly customized based on the market due to compliance. Overall, you should find us in 2026 in all the markets with all these products.

We love that market. We have big plans in 2026 for Alberta. That is an area that we're going to be going after. We think outside of the traditional downtown core of Toronto, there are a lot of good opportunities that we're starting to engage with developers who are doing some interesting work there. Think of us with those products being national, slightly customized based on the market due to compliance. Overall, you should find us in 2026 in all the markets with all these products.

Speaker #3: So that's an area that we're going to be going after. We think, outside of the traditional downtown core of Toronto, there are a lot of good opportunities that we’re starting to engage with developers who are doing some interesting work there.

Speaker #3: So, think of us with those products being national, slightly customized based on the market due to compliance. But overall, you should find us in '26 and in all the markets with all these.

Speaker #3: products. Thank

Speaker #1: You, Joseph. And our final question from the audience is: Does Tribe ever intend to enter into the U.S.?

Operator: Thank you, Joseph. Our final question from the audience is, does Tribe ever intend to enter into the US market?

Speaker #1: market?

Speaker #3: Scott

Scott Ullrich: Scott's smiling.

Joseph Nakhla: Scott's smiling.

Speaker #2: Let me take that one, Joseph. Scott smiling.

Joseph Nakhla: Let me take that one, Joseph.

Scott Ullrich: Let me take that one, Joseph.

Speaker #3: Yeah, yeah. Scott, why don't you take that one? Yeah.

Scott Ullrich: Yeah. Yeah. Scott, why don't you take that one? Yeah.

Joseph Nakhla: Yeah. Yeah. Scott, why don't you take that one? Yeah.

Speaker #2: Yeah. So I also hit up our M&A side of it. Over the past four years, we've actually looked at five opportunities in the United States.

Joseph Nakhla: I also hit up our M&A side of it. Over the past four years, we've actually looked at five opportunities in the United States. Obviously, we haven't closed on any of them. They haven't quite met what we were looking for as a partner in the US, but we are always actively involved in US as well, obviously, as Canada.

Scott Ullrich: I also hit up our M&A side of it. Over the past four years, we've actually looked at five opportunities in the United States. Obviously, we haven't closed on any of them. They haven't quite met what we were looking for as a partner in the US, but we are always actively involved in US as well, obviously, as Canada.

Speaker #2: Obviously, we haven't closed on any of them. They haven't quite met what we were looking for in a partner in the U.S. But we are always actively involved in the U.S. as well, obviously, as Canada.

Speaker #1: Thank you, Scott. There are no further questions. I will now pass the call back to Joseph Nachwa for closing remarks.

Operator: Thank you, Scott. There are no further questions. I will now pass the call back to Joseph Nakhla for closing remarks.

Speaker #3: Well, thank you so much for taking time out of your busy Monday and for your interest in our organization. We're very pleased with where we are, leaving 2025 and heading into 2026.

Scott Ullrich: Well, thank you so much for taking time out of your busy Monday and your interest in our organization. We're very pleased where we are leaving 2025, going to 2026. We think we've been able to build that national footprint, which makes us a unique asset, not alone in the fact that we deliver service in all the different residential living types of communities, which makes us essentially an asset of its kind, not only in Canada, but all over the globe, to be honest. We're quite pleased with the financial performance of the organization. We all have enough grace to understand how microcaps work. We're believers. We're investors in our own company. We love the opportunity in front of us. We see a direct path to a very, very profitable and a large organization.

Joseph Nakhla: Well, thank you so much for taking time out of your busy Monday and your interest in our organization. We're very pleased where we are leaving 2025, going to 2026. We think we've been able to build that national footprint, which makes us a unique asset, not alone in the fact that we deliver service in all the different residential living types of communities, which makes us essentially an asset of its kind, not only in Canada, but all over the globe, to be honest. We're quite pleased with the financial performance of the organization. We all have enough grace to understand how microcaps work. We're believers. We're investors in our own company. We love the opportunity in front of us. We see a direct path to a very, very profitable and a large organization.

Speaker #3: We think we've been able to build that national footprint, which makes us a unique asset, not only in the fact that we deliver service in all the different residential living types of communities.

Speaker #3: Which makes us essentially an asset of its kind, not only in Canada, but all over the globe, to be honest. We're quite pleased with the financial performance of the organization.

Speaker #3: We all have enough grace to understand how microcaps work. We're believers. We're investors in our own company. We love the opportunity in front of us.

Speaker #3: We see a direct path to a very, very profitable and large organization. We're ready, like I said, second and third in different categories that really matter in the space.

Scott Ullrich: We're already, like I said, second and third in different categories that really matter in the space. '26 is absolutely going to be a transformational year in terms of us making a big dent into our EBITDA numbers and cash generation. Thanks for your interest. We hope to see you in the market, and feel free to reach out to us. We're generally easy to get a hold of. Thanks, guys.

We're already, like I said, second and third in different categories that really matter in the space. '26 is absolutely going to be a transformational year in terms of us making a big dent into our EBITDA numbers and cash generation. Thanks for your interest. We hope to see you in the market, and feel free to reach out to us. We're generally easy to get a hold of. Thanks, guys.

Speaker #3: And '26 is absolutely going to be a transformational year in terms of us making a big dent in our EBITDA numbers and cash generation.

Speaker #3: So, thanks for your interest. We hope to see you in the market. Feel free to reach out to us; we're generally available.

Operator: Goodbye.

Q3 2025 Tribe Property Technologies Inc Earnings Call

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