Q4 2025 BuildDirect.com Technologies Inc Earnings Call

April 16, 2026

Good afternoon, everyone and welcome to <unk> Q4, and full year 2025 earnings Conference call. My name is pressing and I will be your moderator for today.

Prit Singh: Good afternoon, everyone, and welcome to BuildDirect's Q4 and full year 2025 earnings conference call. My name is Prit Singh, and I will be your moderator for today. For those unfamiliar, BuildDirect trades on the TSXV under the ticker BILD, that's B-I-L-D, and on the OTCQB under the ticker BDCTF. Before we begin, I would like to remind everyone that certain statements made during this call may constitute forward-looking information within the meaning of applicable securities laws. These statements are based on management's current expectations and are subject to risks and uncertainties. Please refer to the detailed forward-looking statements and advisories in today's earnings deck and press release. In addition, please note that all dollar amounts mentioned in this presentation today are in US dollars unless otherwise stated. Following comments from BuildDirect's management team, the call will be open for questions.

Prit Singh: Good afternoon, everyone, and welcome to BuildDirect's Q4 and Full Year 2025 Earnings Conference Call. My name is Prit Singh, and I will be your moderator for today. For those unfamiliar, BuildDirect trades on the TSXV under the ticker BILD, that's B-I-L-D, and on the OTCQB under the ticker BDCTF.

For those unfamiliar build direct trades on the <unk> under the ticker build let's be ILD and on the OTC QB under the ticker <unk> B D. C T F.

Before we begin.

Bob.

I would like to remind everyone.

A certain that certain statements made during this call may constitute forward looking information.

Prit Singh: Before we begin, I would like to remind everyone that certain statements made during this call may constitute forward-looking information within the meaning of applicable securities laws. These statements are based on management's current expectations and are subject to risks and uncertainties.

Within the meaning of applicable securities laws. These statements are based on management's current expectations and are subject to risks and uncertainties.

Please refer to the detailed forward looking statements on advisory than today's earnings deck and press release.

In addition, please note that all dollar amounts mentioned in this presentation today are in U S dollars unless otherwise stated.

Prit Singh: Please refer to the detailed forward-looking statements and advisories in today's earnings deck and press release. In addition, please note that all dollar amounts mentioned in this presentation today are in US dollars unless otherwise stated. Following comments from BuildDirect's management team, the call will be open for questions.

Following comments from <unk> management team the call will be opened for questions questions can be sent in using the zoom kidney function at the bottom of your screen, if you're calling in to listen to the webinar today. Please email your questions directly to IR at <unk> Dot com IR at <unk> Dot com.

Prit Singh: Questions can be sent in using the Zoom Q&A function at the bottom of your screen. If you are calling in to listen to the webinar today, please email your questions directly to ir@builddirect.com. That's ir@builddirect.com. A replay of this call will be available approximately 24 hours after conclusion of this presentation today. It will be posted on the investor relations section of our website at ir@builddirect.com. With that out of the way, I would like to turn the call over to Shawn Wilson, CEO of BuildDirect.

A replay of this call will be available approximately 24 hours. After conclusion of this presentation say posted on the Investor Relations section.

Of our website at IR at <unk> Dot com.

With that out of the way I would like to turn the call over to Sean Wilson CEO of build direct.

Thank you Brett for everyone. Good morning, Thanks for joining us today.

1025 was a year of disciplined execution and tangible progress for both direct despite a challenging macro environment and industry headwinds, we delivered on our key priorities gross margin expansion EBIT growth and balance sheet strengthening.

Shawn Wilson: Thank you, Prit. Good morning, everyone. Thanks for joining us today. 2025 was a year of disciplined execution and tangible progress for BuildDirect. Despite a challenging macro environment and industry headwinds, we delivered on our key priorities, gross margin expansion, EBITDA growth, and balance sheet strengthening. As you'll see in today's materials, we grew full-year revenue 1.1% to $66.2 million, expanded gross margin 170 basis points, and increased adjusted EBITDA 39% to $3.1 million. Our Pro Center segment continued to scale, while e-commerce achieved a full-year EBITDA turnaround of close to $2 million. We also strengthened our liquidity position with $8.2 million in cash and working capital from $6.1 million to $8.8 million following a successful $5.2 million equity raise. These results reflect the ability of our omni-channel model and the focus we place on operational efficiency and higher margin product mix.

As you'll see in today's materials, we grew full year revenue of one 1% to 60 to $66 2 million.

Gross margin 170 basis points and increased adjusted EBITDA.

39% to $3 1 million or plus center segment continue to scale. Our e-commerce achieved a full year EBITDA turnaround of close to $2 million.

We also strengthen our liquidity position with $8 $2 million in cash and working capital up to $6 1 million.

Shawn Wilson: Our Pro Center segment continued to scale, while e-commerce achieved a full-year EBITDA turnaround of close to $2 million. We also strengthened our liquidity position with $8.2 million in cash and working capital from $6.1 million to $8.8 million following a successful $5.2 million equity raise. These results reflect the ability of our omni-channel model and the focus we place on operational efficiency and higher margin product mix. I'll now hand the call over to Kerry to walk through the detailed financial results.

288 million following successful $5 2 million equity raise.

This is also a slide durability of our Omnichannel model and the focus we placed on operational efficiency and higher margin product mix.

I'll now hand, the call over to Kerry to walk through the detailed financial results.

Yes, thanks very much Sean.

Good morning to everyone. So let me.

Start with Q4 here fourth quarter 2025, Q4 revenue was $16 2 million.

Shawn Wilson: I'll now hand the call over to Kerry to walk through the detailed financial results.

Kerry Biggs: Yeah. Thanks very much, Shawn. Good morning to everyone. Let me start with Q4 here, Q4 2025. Q4 revenue was $16.2 million, down slightly from last year Q4, but with strong margin performance overall. Gross margin expanded 240 basis points to 41.7%, and driving gross profit of $6.7 million. Adjusted EBITDA for the quarter reached $0.9 million, up 140% year over year. On a full year basis, the story is even clearer with revenue of $66.2 million, as Shawn noted, gross profit of $26.7 million, which is up 5.5%, and adjusted EBITDA of $3.1 million, which was up 39%. Operating cash flow was +$2.4 million. As noted, we ended the year with significantly improved working capital on the balance sheet. Let's break down the business by segment. I think that's probably the next slide.

Down slightly from last year Q4, but with strong margin performance overall gross margin expanded 240 basis points to 41, 7%.

And driving gross profit.

$6 $7 million adjusted EBITDA for the quarter reached.

<unk> 9 million.

Up 140% year over year.

On a full year basis. The story is even clearer with revenue of $66 2 million as Sean noted gross profit of $26 7 million, which is up five 5% and adjusted EBITDA of $3 1 million, which was up 39%.

Operating cash flow was positive $2 4 million.

And as noted we ended the year with significantly improved.

<unk> capital on the balance sheet.

Kerry Biggs: Operating cash flow was +$2.4 million. As noted, we ended the year with significantly improved working capital on the balance sheet. Let's break down the business by segment. I think that's probably the next slide.

So let's break down the business by segment.

I think I think that's probably the next slide.

On the E Commerce segment revenue was $14 3 million.

Down five 8%.

As we deliberately shifted toward higher margin skus.

Kerry Biggs: On the E-commerce segment, revenue was $14.3 million, down 5.8% as we deliberately shifted toward higher margin SKUs and direct imports. Gross margin reached a record 57.8%, and the segment adjusted EBITDA turned positive at $1.5 million for the E-commerce segment, over $2 million improvement year over year. The drivers were direct import optimization, meaningful OpEx reductions, and headcount restructuring that right-sized our current revenue base as we press released in early 2025. Moving on to the next slide. In the Pro Center segment, this remains our largest and most stable growth engine. Revenue grew 3% to $51.9 million. Gross margin improved 35.2%, 35.6%, and segment-adjusted EBITDA was $5.8 million for the Pro Centers. We opened the new Orlando Pro Center early in 2025 and continued to integrate recent acquisitions, delivering operating leverage across our network. Advancing to the next slide, Slide 8, balance sheet and liquidity.

Indirect imports gross margin reached.

Reached a record 57, 8% in the segment adjusted EBITDA turned positive at $1 5 million for the E Comm segment.

Over 2 million improvement year over year.

The drivers were direct import optimization.

Meaningful opex reductions in head count restructuring.

That right sized our current revenue base as we press released in early 2025.

Moving on to the next slide in the Pro Center segment.

This remains our largest and most stable growth engine.

Revenue grew 3% to $51 9 million gross margin improved 35 points.

Kerry Biggs: Moving on to the next slide. In the Pro Center segment, this remains our largest and most stable growth engine. Revenue grew 3% to $51.9 million. Gross margin improved 35.2%, 35.6%, and segment-adjusted EBITDA was $5.8 million for the Pro Centers. We opened the new Orlando Pro Center early in 2025 and continued to integrate recent acquisitions, delivering operating leverage across our network. Advancing to the next slide, Slide 8, balance sheet and liquidity.

235, 6%.

Segment adjusted EBITDA was five 8 million for the pro centers.

We opened the new Orlando Pro Center early in 2025 and continue to integrate recent acquisitions.

Delivering operating leverage across our network.

Advancing to the next slide slide eight balance sheet and liquidity.

You see that we ended the year with $8 2 million of cash as Sean noted up $5 4 million net working capital of $8 8 million was up $6 1 million and the strengthened.

Equity position following the five two.

Kerry Biggs: You see that we ended the year with $8.2 million of cash, as Sean noted, up $5.4 million. Net working capital of $8.8 million was up $6.1 million, and the strengthened equity position following the $5.2 million raise. Total debt remains prudent. We have ample liquidity to support 2026 and our growth initiatives that we expect to undertake. With that, I will hand it over to Sean for our 2026 priorities and outlook. Sean?

$1 million raise our total debt remains prudent and we have ample liquidity to support our 2026 and our growth initiatives that.

That we expect to undertake.

So with that I will hand, it over to Sean for our 2026 priorities and outlook John.

Sounds great. So as the extra 2000, <unk>, we're seeing some near term softness in Q1 driven by macro headwinds.

Please tariff related cost pressure. However, we view this as a single entry point for M&A, especially flooring.

Shawn Wilson: Yeah, sounds great. As we enter 2026, we're seeing some near-term softness in Q1, driven by macro headwinds and fleet tariff-related cost pressure. However, we view this as a cyclical entry point for M&A, especially flooring. Our operations remain focused and have an active pipeline for acquisition, really targeting deep value, cash flow positive businesses that fit our Pro Center platform. That's really the main focus for our expansion. Looking ahead, we have three clear priorities for 2026. We'll keep building on our foundation that we put in place. First, we closed the acquisition of Greyne, which was an e-commerce platform, in February. Based on unaudited pre-deal information, Greyne generated approximately $6 million in revenue and about $300,000 in adjusted EBITDA in 2025. We expect that deal to deliver strong cost synergies through logistics and warehousing optimization, and full integration is already well underway.

Cooperations remain focused and have an active pipeline for acquisition targeting deep value cash flow.

Positive businesses that fit our pro center platform, especially the the main focus for for our expansion.

So looking ahead, we have three clear priorities for 2026 I'll keep building on our foundation, we put in place first we closed the acquisition of grain, which was an E. Commerce platform in February and then based on unaudited pre deal information grain generated approximately $6 million revenue and about 300000 adjusted EBITDA in 'twenty.

Shawn Wilson: We'll keep building on our foundation that we put in place. First, we closed the acquisition of Greyne, which was an e-commerce platform, in February. Based on unaudited pre-deal information, Greyne generated approximately $6 million in revenue and about $300,000 in adjusted EBITDA in 2025. We expect that deal to deliver strong cost synergies through logistics and warehousing optimization, and full integration is already well underway.

Five.

We expect that deal to deliver.

Strong cost synergies logistics, and warehousing optimization and full integration is already well underway looking forward so revenue contribution as well as the synergies in the second half of this year.

At the same time, we're continuing to prioritize our pro centers and E Commerce operations scaling our online reach driving for their margin.

Shawn Wilson: Looking forward to the revenue contribution as well as the synergies in the H2 of this year. At the same time, we're continuing to prioritize our Pro Centers and e-commerce operations. That means scaling our online reach, driving further margin, expanding into additional product categories, which will unlock more operating leverage across our brick-and-mortar network. Third, we're actively working on our pipeline. We have a strong list of opportunities, especially flooring, and our focus remains squarely on deep value, margin-accretive targets that fit in with our platform, and really viewing the softness of the market as a good opportunity on the buy side. As mentioned, demand recovery is expected to improve as macro improves. Short-term, we're focused on being opportunistic where possible across our strategies. With that, I'll turn it back to Prit for any Q&A.

Expanding into additional product categories.

Which will unlock more operating leverage across our brick and mortar brick and mortar network.

And then third we're actively working on our pipeline, we have a strong list of opportunities, especially flooring and our focus remains squarely on deep value margin accretive targets that fit in with our platform.

And really viewing the softness of the market is a good opportunity on the buy side.

Shawn Wilson: Third, we're actively working on our pipeline. We have a strong list of opportunities, especially flooring, and our focus remains squarely on deep value, margin-accretive targets that fit in with our platform, and really viewing the softness of the market as a good opportunity on the buy side. As mentioned, demand recovery is expected to improve as macro improves. Short-term, we're focused on being opportunistic where possible across our strategies. With that, I'll turn it back to Prit for any Q&A.

As mentioned demand recovery is expected to improve as the macro improves short term, we're focused on being opportunistic where possible across our strategies.

With that I'll turn it back to <unk> for any Q&A.

Thanks, Curt alright, thanks, Sherry and thanks, Sean.

As mentioned at the top of the call. If anyone does have any questions you can submit them to the Q&A function the bottom of your screen. Alternatively, if you are calling in today you can.

Prit Singh: Thanks, Kerry. Thanks, Kerry, and thanks, Shawn. As mentioned at the top of the call, if anyone does have any questions, you can submit them to the Q&A function at the bottom of your screen. Alternatively, if you are calling in today, you can email us directly at ir@builddirect.com. Again, that's ir@builddirect.com. The first question. Can you please walk us through your balance sheet and any significant changes that took place throughout the year?

I'll ask directly at IR at <unk> Dot Com again, with IRR build direct dot com.

First question can you. Please walk us through your balance sheet and any significant changes that took place throughout the year.

Okay got it.

Yes, yes, yes, I think.

Yes.

Obviously, I think from a from a balance sheet perspective, the first and foremost as.

Shawn Wilson: Kerry, you got it?

As the cash position, obviously, we did the equity deal.

Kerry Biggs: Yes. Obviously, I think, from a balance sheet perspective, the first and foremost is the cash position. Obviously, we did the equity deal. We have, at this point, the dry powder to support, as I've noted, the 2026 growth profile. Overall, again, working capital, if we focus on AR, AP, AR is in line with prior year, right-sized AP as well. We've flushed through some of our payables that were at the end of the prior year. Overall, we're in an extremely strong position from a working capital perspective, with right-sized AP, AR, and obviously our cash position. I'd also kind of note the RBC credit facility remains as dry powder as well. We are in a good spot with a facility close to CAD 8.5 million. We drew to support some of our acquisitions this year.

So we have at this point the dry powder to support as I have noted the.

The 2026 growth profile overall again working capital.

We focus on.

AEP.

As in.

In line with prior year.

Sized AP as well.

Through some of our.

Payables that were at the end of the prior year. So overall, we are in an extremely strong position from.

From a working capital perspective.

With right sized.

And obviously, our cash position I'd also kind of note.

Kerry Biggs: Overall, we're in an extremely strong position from a working capital perspective, with right-sized AP, AR, and obviously our cash position. I'd also kind of note the RBC credit facility remains as dry powder as well. We are in a good spot with a facility close to CAD 8.5 million. We drew to support some of our acquisitions this year.

The RBC credit facility remain.

As dry powder as well we are in a good spot with that facility close to Canadian.

$5 million.

We drew to sue.

Support some of our acquisitions this year.

But again, we have significant capacity on that credit facility.

And I'll point out is that kind of the balance sheet, we have had.

Vendor take back from note associated with floor source.

Kerry Biggs: Again, we have significant capacity on that credit facility. Finally, I'll point out those that kind of know the balance sheet. We have had a vendor take back promissory note associated with FloorSource acquisition over the last number of years, which was an outflow of approximately $1.3 million of principal payments to pay those vendors back. That now is gone. We made our last payment in early January, so that incremental $1.3 million will go directly to the bottom line to support our growth. Overall, we're in a great spot on the balance sheet and cash flow perspective.

Acquisition over the last number of years, which was a <unk>.

Outflow of approximately $1 3 million U S.

Our principal payments to pay those vendors back that now is gone.

We made our last payment in early January so.

That that incremental $1 3 million will go directly to the bottom line to support our growth. So overall, we're in a great spot.

Kerry Biggs: That now is gone. We made our last payment in early January, so that incremental $1.3 million will go directly to the bottom line to support our growth. Overall, we're in a great spot on the balance sheet and cash flow perspective.

On the balance sheet.

And cash flow perspective.

Okay. Thank you.

Just touching on the macro market.

Sean can you please touch base on the overall conditions in the foreign market and how it's affecting your overall business.

Prit Singh: Okay. Thank you. Just touching on the macro market, I guess, Shawn, can you please touch base on the overall conditions in the flooring market and how it's affecting your overall business?

Yes.

Ask that again feel free to add anything on the hotel and so last year as last couple of years have been quite challenging one of the primary.

The drivers for residential flooring is.

Shawn Wilson: Yeah. I'll talk to that. I guess I'll pretty much add nothing on the retail end. Last year, actually last couple of years have been quite challenging. One of the primary drivers for residential flooring is housing turnover in the US. With the exception of the COVID and the nesting phenomenon that happened where people had nothing but time and money to renovate their houses. Typically, housing turnover drives both flooring and then also, a part of that is new construction, which is related. The last few years have been very soft on that front. With interest rates being where they are, people stuck in their homes, so on and so forth. We've really turned this business around and built a foundation during difficult times, which is great, right?

Turnover in the us with the exception of the.

The COVID-19 nesting phenomenon to happen where people have nothing but time money to renovate their houses typically housing turnover drives both flooring.

And then also.

Now part of that is new construction, which is related so the last few years have been very soft on on that front with interest rates being where they are people stuck in their homes and so on and so forth.

Shawn Wilson: Typically, housing turnover drives both flooring and then also, a part of that is new construction, which is related. The last few years have been very soft on that front. With interest rates being where they are, people stuck in their homes, so on and so forth. We've really turned this business around and built a foundation during difficult times, which is great, right?

So we've.

Really have turned this business around and built the foundation.

During difficult times, which is.

This is great right, because you're effectively getting things in a great spot and ready.

The ready to pounce as conditions improve.

In Q1 really Q4 towards the very tail end like December and coming into <unk>.

Shawn Wilson: You're effectively getting things in a great spot and are ready to pounce as conditions improve. I would say in Q1, really Q4 towards the very tail end, like December and coming into Q1, macro's been increasingly more challenging with the tariff changes, uncertainty, things like that in the market. Flooring is a discretionary purchase, and when it's not tied to housing turnover, but rather residential remodeling, people changing their floors out in the place they already live. Uncertain times or disruption like that can delay projects. What you normally see is you see backlog increase, projects get delayed, things like that. The other part I mentioned, we have a considerable business in Michigan that is tied to new construction as well, and it's been unseasonably cold Q1 there.

Into Q1.

Macro then.

<unk>.

The more challenging with the tariff.

Tariffs changes uncertainty things like that in the market flooring is a discretionary purchase.

It was not tied to housing turnover, but rather a residential remodeling.

People changing their floors out in the place. They are already live you can find uncertain times or.

Disruption like that can delay projects. So you normally see is you'll see backlog backlog increase probably just get delayed.

Things like that that part I mentioned, we have a considerable business and in Michigan that is tied to new construction as well and its been unseasonably cold.

Shawn Wilson: What you normally see is you see backlog increase, projects get delayed, things like that. The other part I mentioned, we have a considerable business in Michigan that is tied to new construction as well, and it's been unseasonably cold Q1 there.

Q Q1, there so that means practically speaking as you have backlog.

That increases in projects that will come through this time will be.

Often the initial so I think overall that's over what we're seeing.

Shawn Wilson: That means practically speaking, is you have backlog that increases and projects that will come through, just the timing will be a bit off than initial. I think overall, that's what we're seeing. As I mentioned, we've built this business for the conditions that we were in and using the opportunity to aggressively pursue acquisitions and deals along the way, both on the product side, and a few others that take advantage of the spot that we're in. In tougher times, that's how we approach it, opportunistically, and build things for when they pick back up and be able to ride that tailwind. Anything to add, Kerry?

As I mentioned, we've kind of built this business for.

The conditions that we were that we were in and using the opportunity.

To aggressively pursue acquisitions in deals.

Shawn Wilson: As I mentioned, we've built this business for the conditions that we were in and using the opportunity to aggressively pursue acquisitions and deals along the way, both on the product side, and a few others that take advantage of the spot that we're in. In tougher times, that's how we approach it, opportunistically, and build things for when they pick back up and be able to ride that tailwind. Anything to add, Kerry?

Along the way both on the product side and a few others that take advantage of.

The thought that were the spot that we're in so.

In tougher times, that's how we approach it opportunistically and build things for when they it picked back up and be able to ride that tailwind.

Gary.

No that's great that's great John.

Thank you.

Next question can you talk about the E Commerce Division and your thoughts for 2026.

Yes, so it's almost business as I mentioned previously is one of those businesses, we have that can scale very well for an operating leverage perspective.

Kerry Biggs: No, that's great. That's great, Sean.

Prit Singh: Good. Thank you. Next question. Can you talk about the e-commerce division and your thoughts for 2026?

Business doesn't really need a lot on the support side for higher revenue volumes.

Shawn Wilson: Yeah. Our e-commerce business, as I mentioned previously, is one of those businesses that we have that can scale very well from an operating leverage perspective, and that the business doesn't really need a lot on the support side for higher revenue volumes. Really, when you look at the tail end of last year and going into this year, that category, that business rather, of all of our businesses is heavily tied into discretionary homeowner traffic. Specifically, we don't do a lot of large commercial projects, new construction, or things like that out of that business. It's typically a homeowner who's working with a pro, or vice versa, doing a project. That segment can be a bit sensitive to macro. Like you have, same thing I mentioned before, you have backlog that piles up and projects that get pushed out.

I really look at.

The tail end of last year and going into this year that category business rather.

All of our businesses heavily tied into discretionary if I'm on or.

Traffic so.

Specifically, we don't do a lot of like large commercial projects or.

In new construction or things like that out of that that business is typically a homeowner who is working with the pro or vice versa doing a project and so.

Shawn Wilson: Specifically, we don't do a lot of large commercial projects, new construction, or things like that out of that business. It's typically a homeowner who's working with a pro, or vice versa, doing a project. That segment can be a bit sensitive to macro. Like you have, same thing I mentioned before, you have backlog that piles up and projects that get pushed out.

Segment can be.

Sensitive too.

To macro like yes, same thing I mentioned before or do you have a backlog that piles up in projects that get pushed pushed out yes.

Thankfully, the Florida doesn't improve in someone's home if it's ugly today, just gets uglier. So it's a bit of pent up demand, we try to stay close to customers and nurture along.

Along the way, but I would say, it's still in the area.

Shawn Wilson: Thankfully, the floor doesn't improve in someone's home. If it's ugly today, it just gets uglier. It's a bit of pent-up demand. We try to stay close to customers and nurture along the way. I would say still an area. It's one of our segments that I'm probably the most excited about pulling up, but also along with that, being mindful that it can be adversely impacted by the macro. What that means, practically speaking, is that business is primarily driven by digital advertising, and you want to be a bit cautious in a tougher market that you don't go too hard, too heavy, and have your marketing expense explode, but rather ride that wave. Still a bright spot for us, I believe, in the future for sure.

Our segment is probably the most excited about pulling up pulling up but also along with that being mindful of that.

It can be it can be.

Adversely impacted by by the macro and what that means possibly speaking is that business is primarily driven by.

Bye.

Digital advertising and if you want to be a bit.

The cautious in a tougher market. They don't go too hard too heavy and.

Shawn Wilson: What that means, practically speaking, is that business is primarily driven by digital advertising, and you want to be a bit cautious in a tougher market that you don't go too hard, too heavy, and have your marketing expense explode, but rather ride that wave. Still a bright spot for us, I believe, in the future for sure. Along with that's how we've shown up so far with it towards the calendar last year and also in our earlier reads for this year.

Marketing expense explode.

Rather kind of ride that wave so still a bright spot for us I believe in the in the future.

For sure along with that.

<unk>.

That's how.

We've kind of shown up so far.

With it towards the tail end of last year and also in.

Our early reads for this year.

Shawn Wilson: Along with that's how we've shown up so far with it towards the calendar last year and also in our earlier reads for this year.

Okay. Thank you next question can.

Can you please walk us through.

Same store performance in 2025 for some of the Pro center locations.

Yes, it's pretty lumpy right that one yes, yes.

Prit Singh: Okay. Thank you. Next question. Can you please walk us through same-store performance in 2025 for some of the Pro Center locations?

Yes, I wont get into the specific details here, but I guess, what I'd say like if you take a look at our MD&A.

In this segmented area, we do split out some of the the revenue.

Shawn Wilson: Yeah. Kerry, do you want to grab that one?

Kerry Biggs: Yep. Yeah. I won't get into the specific details here, but I guess what I'd say, if you take a look at our MD&A, in the segmented area, we do split out some of the revenue with and without Orlando. In our MD&A on page 8, we note Pro Center sales for Q4 2025 versus Q4 2024 with and without the Orlando location. Really, that's just the only store that came on stream 1 April 2025, which kind of will impact the results. Without Orlando, Q4 2025 versus Q4 2024, same-store sales would have decreased approximately 9%, as disclosed in the MD&A. On the next page, on a consolidated basis for the 12 months, again, Pro Center revenue was $51.8 million for the full year 2025. Without the Orlando Pro Center revenue for 2025, that number would have been $48.4 million.

With and without Orlando so.

In our in our MD&A on page eight we note.

<unk> sales for Q4, 25 versus Q4, 2004 with and without the Orlando locations are really that's just the only store that.

That came on stream April one of 25%, which kind of.

Will.

Will impact our results so without Orlando Q4 dollars 25 versus 224 same store sales would have decreased approximately 9% as disclosed in the MD&A.

On the next page on a consolidated basis for the 12 months.

Again Pro center revenue was.

51, 8 million for the full year 2025.

Kerry Biggs: On the next page, on a consolidated basis for the 12 months, again, Pro Center revenue was $51.8 million for the full year 2025. Without the Orlando Pro Center revenue for 2025, that number would have been $48.4 million.

Without the.

The Orlando Pro Center revenue for 2025 that number would have been 48.4 million. So you compare that with.

Prior year.

Would have been a decrease of 4% for the full year. So yes same store sales as kind of Shawn noted.

Overall overall soft buyback and it gives you an idea.

Kerry Biggs: You compare that with prior year, would have been a decrease of 4% for the full year. Yeah, same-store sales, as Shawn Wilson noted, overall soft, but that kind of gives you an idea of the Pro Center contribution from Orlando. Again, if you kind of continue through the MD&A on the operating expense side of things, we kind of split that out as well, where without Orlando, OpEx is down year over year. I'll just kind of guide you to the MD&A.

<unk> Pro center contribution from Orlando and again, if you can kind of continue through the MD&A on the operating expense side of things, if we kind of split that out as well.

Without Orlando Opex is down year over year. So just kind of guide you to the MD&A for further details.

Okay great.

Next question can you give some color on the acquisition pipeline.

If you can how many are you currently looking at.

What products.

Categories and geographies are you focused on and how do you view the valuation multiples that are attractive to you.

Prit Singh: Okay, great. Next question: can you give some color on the acquisition pipeline? If you can, how many are you currently looking at? What products, categories, and geographies are you focused on, and how do you view the valuation multiples that are attractive to you? It's a few questions. Yeah.

A few questions.

So it sounds good.

So I would say kind of first foremost we are the most interested in the sunbelt scenario of the country until they thought people are moving to and also have a lot of growth.

But along with that also helps balance out our <unk>.

Shawn Wilson: Yeah. Sounds good. I would say first and foremost, we are the most interested in the Sun Belt. It's an area of the country intuitively a lot of people are moving to and also have a lot of growth. Along with that, also helps balance out our geographical mix. Intuitively, freight ships in the east and flows west, so it's a good place for us. For us, Orlando was step one in that area. The second part I mentioned, so our company today does not have a strong presence in tile. We've talked a lot about that category specifically. Businesses who operate in the Sun Belt intuitively also are heavier on the tile side, and tile's a very large segment of the overall flooring industry and pretty decent margins.

Our geographical mix.

Intuitively.

Great.

Ships in the East end flows west so it's good.

Place for us for US Orlando was kind of step one.

The area.

The.

The second part I mentioned so.

Our company today does not have a strong presence in.

Phil we've talked a lot about that category, specifically and so businesses who operate in the Sunbelt intuitively also.

Shawn Wilson: The second part I mentioned, so our company today does not have a strong presence in tile. We've talked a lot about that category specifically. Businesses who operate in the Sun Belt intuitively also are heavier on the tile side, and tile's a very large segment of the overall flooring industry and pretty decent margins.

Our heavier on the tile side in <unk>.

A large segment of the overall flooring industry and pretty decent margins as.

It's a good category for people like Us our company on the import side since most of the competitors in the U S. R.

Ah procuring from like two step distribution.

Complexities around the category, so we like that as well.

Shawn Wilson: It's a good category for people like us, our company, on the import side, since most of the competitors in the US are procuring from two-step distribution due to complexities around the category. We like that as well. When it comes to what's attractive to us, we mentioned kind of before, we look for businesses that have a good mix of pro customers. A lot of times, that's a mix of homeowner/pro, or vice versa. Those two things very often go together, versus full-service, fully installed retail. We tend to prefer the more pro-focused DIY locations. From a deal size, the last two acquisitions we've done, each location was around the $5 million range, right? We've talked about that a lot. It's kind of a sweet spot for our ideal footprint, warehouse inventory need to support it, things like that.

When it comes to like when it comes to.

What's attractive to us you've mentioned kind of before we look for businesses that have a good mix of.

Pro customers a lot of times, that's a mix of homeowners loss pro or vice versa.

Those two things very often go go together.

Versus like full service fully installed retail we tend to prefer the.

More pro focused DIY.

Locations and then from.

From a deal size like the last two acquisitions, we've done dislocation was around 5%.

Shawn Wilson: We tend to prefer the more pro-focused DIY locations. From a deal size, the last two acquisitions we've done, each location was around the $5 million range, right? We've talked about that a lot. It's kind of a sweet spot for our ideal footprint, warehouse inventory need to support it, things like that.

$5 million to $7 million range right, we'll talk about that a lot of kind of a sweet spot for our ideal footprint.

Warehouse inventory need to to support it things like that.

And this year, we do want to continue deploying capital in that regard too.

To boost our are posted on our count in the Sunbelt area definitely definitely a priority when it comes to deal site look be very.

Shawn Wilson: This year, we do want to continue deploying capital in that regard to boost our Pro Center accounts in the Sun Belt area. Definitely a priority. When it comes to deals, look, it's a very straightforward play. Hasn't changed in many years. On the back of COVID, the flooring industry got very soft. Saw a big opportunity coming to effectively buy the dip. The extra macro pressure that's been out there that was definitely unforecasted kind of across the board has made deals more available, more attractive, but also at the same time, being mindful that when you're doing deals, you typically have to do a little bit of restructuring to right size them, make sure it's a good fit. When we do deals, we tend to look for intrinsic value.

A very straightforward play hasnt changed in many years.

Back and cover the flooring industry got very soft.

So a big opportunity coming to.

But can they buy the dip.

The extra macro pressure that's out there that was definitely on forecasted.

Kind of across the across the board has made.

Shawn Wilson: Saw a big opportunity coming to effectively buy the dip. The extra macro pressure that's been out there that was definitely unforecasted kind of across the board has made deals more available, more attractive, but also at the same time, being mindful that when you're doing deals, you typically have to do a little bit of restructuring to right size them, make sure it's a good fit. When we do deals, we tend to look for intrinsic value.

Deals more available and more attractive, but also at the same time being mindful.

Doing deals you'd typically have the deal a little bit of restructuring too.

Yes, youre right sized on make sure. It's a good fit when we do deals we tend to look for intrinsic value. So.

It's not so much about the multiple of EBITDA as the business has performed in the past, but rather what is the business.

How the customers acquired at what cost and then what are you buying specifically we prefer.

Shawn Wilson: It's not so much about the multiple of EBITDA as the business has performed in the past, but rather, what is the business? How are the customers acquired? At what cost? Then what are you buying specifically? We prefer effectively purchasing working capital, inventory, a little bit of AR, but typically quality inventory, and then we back into what that multiple might look like. It's first and foremost valuing from an intrinsic perspective, not a business is done four or five times EBITDA, and so you pay some kind of multiple against that. It's not how this business is designed to buy or how we think about deals.

If I could the purchasing working capital inventory.

Although they are but typically quality inventory and then we back into what that multiple and that looks like but it's first and foremost.

Shawn Wilson: We prefer effectively purchasing working capital, inventory, a little bit of AR, but typically quality inventory, and then we back into what that multiple might look like. It's first and foremost valuing from an intrinsic perspective, not a business is done four or five times EBITDA, and so you pay some kind of multiple against that. It's not how this business is designed to buy or how we think about deals.

Value from an intrinsic perspective not.

Our business is done four or five times EBITDA.

And so you pay some kind of multiple.

Sure.

Against insight as to how this business is designed to buy.

Do we think about deals and so.

Intuitively as I mentioned before because of that it's a good time to go out and do deals, but also have to be very mindful at the same time and operate.

To make those adjustments those changes when you do the transactions.

Shawn Wilson: Intuitively, as I mentioned before, because of that, it's a good time to go out and do deals, but also you have to be very mindful at the same time and operate, and make those adjustments, those changes, when you do the other transactions. Anything you want to add, Kerry, to that?

Al Carey to that.

I would just say that the valuation.

<unk> as you pointed out haven't changed really they've only gotten better right over the last six months and Thats what were seeing.

Buying.

Kerry Biggs: I'd just say that the valuation metrics, as you point out, haven't changed really. They've only gotten better, right, over the last six months, and that's what we're seeing. Buying X dollars worth of assets at an 80% or 90% discount is a good thing. Yeah, that's our focus.

X dollars worth of assets at an 80% or 90% discount.

<unk> is a good thing so yes, that's our focus.

Not a discount.

Realize value rights of 10% of that yes.

Yes.

No.

Very good.

Shawn Wilson: Well, not a discount, but a realized value, right? A 10-

Okay excellent.

Thats it for questions.

Kerry Biggs: Correct.

Shawn Wilson: 15%. Yeah.

Shawn and Carrie Thank you today for being on the call. Thank you for everyone who joined today.

Kerry Biggs: Yeah.

Shawn Wilson: Yeah. Very good.

Prit Singh: Okay, excellent. I think that's it for questions. Shawn and Kerry, thank you today for being on the call. Thank you for everyone who joined today. A replay and the full earnings deck will be available within 24 hours on the IR website. We look forward to speaking with everyone again next quarter. That concludes today's call. Have a great day.

Replay and the full earnings deck will be available within 24 hours on the IR website. We look forward to speaking with everyone. Again next quarter that concludes today's call have a great day.

Thanks, everyone.

Shawn Wilson: Thanks, everyone.

Kerry Biggs: Thanks, all.

Q4 2025 BuildDirect.com Technologies Inc Earnings Call

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