Q4 2025 Tribe Property Technologies Inc Earnings Call

April 28, 2026

Speaker #2: This meeting is being recorded.

Speaker #3: Thank you, everyone, for joining us. My name is Sithan Saini, and I'll be the operator for today's call. Welcome to Tribe Property Technologies fiscal fourth quarter and year-end 2025 financial results conference call.

Operator: Thank you everyone for joining us. My name is Hiten Saini, and I'll be the operator for today's call. Welcome to Tribe Property Technologies Fiscal Q4 and Year-End 2025 Financial Results Conference Call. This call is being recorded. We'll also be having a question and answer session at the end of the call. On our call today, we have Tribe CEO, Joseph Nakhla, and the company CFO, Scott Laroche. I trust that everyone has received a copy of our financial results press release that was issued earlier today. Listeners are also encouraged to download a copy of our financial statements and management discussion analysis from SEDAR+. Please note, portions of today's call, other than historical performance, include statements of forward-looking information within the meaning of applicable security laws. These statements are made under the safe harbor provisions of those laws.

Speaker #3: This call is being recorded. We'll also be having a question-and-answer session at the end of the call. On our call today, we have Tribe CEO Joseph Nakwa and the company CFO Scott Ulrich.

Speaker #3: I trust that everyone has received a copy of our financial results press release that was issued earlier today. Listeners are also encouraged to download a copy of our financial statements and management discussion analysis from CR Plus.

Speaker #3: Please note, portions of today's call, other than historical performance, include statements of forward-looking information within the meaning of applicable security laws. These statements are made under the safe harbor provisions of those laws.

Speaker #3: Forward-looking statements are based on management's current views and assumptions. Please review our press release and Tribe's reports following the CR Plus for various risk factors that could cause actual results to differ materially from our projections.

Operator: Forward-looking statements are based on management's current views and assumptions. Please review our press release and Tribe's reports filed on SEDAR+ for various risk factors that could cause actual results to differ materially from our projections. We use terms such as gross profit, gross margin, adjusted EBITDA, and recurring revenue on this conference call, which are non-IFRS and non-GAAP measures. For more information on how we define these terms, please refer to the definition set out in our managerial discussion and analysis. Reconciliations between any adjusted EBITDA and net income is included in the press release this morning. Please note that all financial information is provided in Canadian dollars unless otherwise noted. With that, I will turn the call over to Tribe CEO, Joseph Nakhla.

Speaker #3: We use terms such as gross profit, gross margin, adjusted EBITDA, and recurring revenue on this conference call, which are non-IFRS and non-GAAP measures. For more information on how we define these terms, please refer to the definitions set out in our Management Discussion and Analysis.

Speaker #3: In addition, reconciliations between any adjusted EBITDA and net income are included in the press release this morning. Please note that all financial information is provided in Canadian dollars unless otherwise noted.

Speaker #3: With that, I will turn the call over to Tribe CEO, Joseph Nakwa.

Speaker #4: Good morning and afternoon, everyone. It's absolute pleasure to be with you. As you will have seen in our financials, Tribe is proud to have announced that 2025 was as expected an EBITDA positive year.

Joseph Nakhla: Good morning and afternoon, everyone. It's an absolute pleasure to be with you. As you will have seen in our financials, Tribe is proud to have announced that 25 was as expected, an EBITDA positive year. It was a year that really was highlighted with revenue growth, national expansion from a footprint point of view. Expansion of both our condo and rental management. We're officially now the third-largest national condo player in Canada and the second-largest national player in the rental management. Despite the different economic constraints, we've been able to forge along with our plans. We were able to, as you'll have seen, also expand significantly our single-unit rental management business.

Speaker #4: It was a year that really was highlighted with revenue growth, national expansion from a point of view, expansion of both our condo and rental management. We are officially now the third largest national condo player in Canada, and the second largest national player in rental management.

Speaker #4: So despite the different economic constraints we've been able to forge along with our plans, we were able to, as you'll have seen, also expand significantly our single-unit rental management business.

Speaker #4: More on that in a second, about why culturally and economically this has been a great move for us, continues to grow, and it's going to keep expanding.

Joseph Nakhla: More on that in a second about why culturally and economically this has been a great move for us, continues to grow, and it keeps expanding. Well, obviously completed a CAD 5.75 million public offering with an additional CAD 1.1 million private placement. That CAD 1.1 was completely done by our insiders, including our management team and the CAD 5.7 we also participated in. We obviously expanded our presence greatly in the GTA market or the greater Toronto area. We actually, through 25, were able to actually diversify our income from both rental versus condo and geographically as well, where almost half our revenue now comes from Ontario, which is a big milestone for us.

Speaker #4: We will obviously complete a $5.75 million public offering with an additional $1.1 million private placement. The $1.1 million was completely done by our insiders, including our management team, and in the $5.75 million we also participated.

Speaker #4: We obviously expanded our presence greatly in the GTA market of the Greater Toronto Area. We actually, through '25, were able to diversify our income from both rental versus condo and geographically as well.

Speaker #4: We're almost half our revenue now comes from Ontario, which is a big milestone for us. And as you'll hear later, we've also were able to secure a large replacement senior loan facility more of that will be coming from Scott to give you more insight on, but it's been a fantastic terms really, really help the company enable the company both in conserving cash due to the lower cost of borrowing, but also given us a lot more utility to be able to go out there and be more aggressive and active in the market.

Joseph Nakhla: As you'll hear later, we've also were able to secure a large replacement senior loan facility. More of that will be coming from Scott to give you more insight on. It's been a fantastic terms. Really, really helped the company, enable the company both in, you know, conserving cash due to the lower cost of borrowing, but also given us a lot more utility to be able to go out there and be more aggressive and active in the market. 25 really is just a big banner year when it comes to the fact that we turned significantly, and Scott will walk you through the financials and details, but that we've turned that corner that we anticipated.

Speaker #4: '25 really is just a big banner year, when it comes to the fact that we turned significantly, and Scott will walk you through the financials and details.

Speaker #4: But we've turned that corner that we anticipated. We made a massive investment to become a national player, made a massive investment to also build a back office that supports all the different rental and condo needs in Canada.

Joseph Nakhla: We made a massive investment to become a national player, made a massive investment to also build a back office that supports all the different rental and condo needs in Canada. Obviously, that took quite a bit of capital. We replaced it, we got it in place, and we did say that 2025 was going to be the turning point. Obviously, our big push now in 2026 is to get to by the end of it, hopefully, within the this year, we'll get to this point of being a cash flow positive company. We're almost there, and we're working very, very hard on that and expanding our gross margin, expanding our footprint and organic growth as well, and I'll be talking about that in a second.

Speaker #4: And obviously, that took quite a bit of capital. We placed it, we got it in place, and we did say that '25 was going to be the turning point.

Speaker #4: And obviously, our big push now—'26—is to get to, by the end of it, hopefully within this year, we'll get to this point of being a cash flow positive company.

Speaker #4: We're almost there. And we're working very, very hard on that and expanding our gross margin, expanding our footprint, and organic growth as well. And I'll be talking about that in a second.

Speaker #4: But with this good news, I'll hand it over to Scott who and his team have done a fantastic job mining the shop. Go ahead, Scott.

Joseph Nakhla: With this good news, I'll hand it over to Scott, who and his team have done a fantastic job minding the shop. Go ahead, Scott.

Speaker #5: Thank you, Joseph. On the revenue front, as Joseph had mentioned, our revenue is up to 32.7 million in 2025. This is a 15.6% year-over-year improvement.

Scott Laroche: Thank you, Joseph. On the revenue front, as Joseph had mentioned, our revenue was up to CAD 32.7 million in 2025. This is a 15.6% year-over-year improvement, driven obviously by organic growth, but as well from having a full year's worth of revenue from our DMS group of companies and a partial year from Ace Agencies, which was an acquisition we did in June of 2025. Both of our segments grew. Software and services were up 17.2% with our transactional revenue up 8.8%. Again, as Joseph mentioned, our margin has improved significantly. Our gross profit grew 26% to CAD 14.4 million, which was faster than our top-line growth, as I mentioned, 15.6%.

Scott Ullrich: Thank you, Joseph. On the revenue front, as Joseph had mentioned, our revenue was up to CAD 32.7 million in 2025. This is a 15.6% year-over-year improvement, driven obviously by organic growth, but as well from having a full year's worth of revenue from our DMS group of companies and a partial year from Ace Agencies, which was an acquisition we did in June of 2025. Both of our segments grew. Software and services were up 17.2% with our transactional revenue up 8.8%. Again, as Joseph mentioned, our margin has improved significantly. Our gross profit grew 26% to CAD 14.4 million, which was faster than our top-line growth, as I mentioned, 15.6%.

Speaker #5: Driven obviously by organic growth, but as well from having a full year's worth of revenue from our DMS group of companies and a partial year from the ACE agencies, which was an acquisition we did in June of 2025.

Speaker #5: Both of our segments grew, software and services. We're up 17.2% with our transactional revenue up 8.8%. And again, as Joseph mentioned, our margin has improved significantly.

Speaker #5: Our gross profit grew 26% to 14.4 million, which is faster than our top-line growth, as I mentioned, 15.6. Again, showing positive operating leverage and our cost of services grew by only 8.7% while, as I mentioned, our revenue was 15.6.

Scott Laroche: Again, showing positive operating leverage. Our cost of services grew by only 8.7%, while, as I mentioned, our revenue was 15.6%. Our cost structure is scaling very well. On the profitability side, our gross margin actually expanded 350 basis points to 44%. Further evidence of our operating leverage as revenue for us is scaling. Our adjusted EBITDA this year, CAD 200,000, has this positive EBITDA for the first time. It's an 110% improvement from last year's -CAD 1.9 million in EBITDA. The 110% improvement, again, was driven by our gross margin expansion and our SG&A discipline and efficiencies.

Scott Ullrich: Again, showing positive operating leverage. Our cost of services grew by only 8.7%, while, as I mentioned, our revenue was 15.6%. Our cost structure is scaling very well. On the profitability side, our gross margin actually expanded 350 basis points to 44%. Further evidence of our operating leverage as revenue for us is scaling. Our adjusted EBITDA this year, CAD 200,000, has this positive EBITDA for the first time. It's an 110% improvement from last year's -CAD 1.9 million in EBITDA. The 110% improvement, again, was driven by our gross margin expansion and our SG&A discipline and efficiencies.

Speaker #5: So our cost structure is scaling very well. The profitability side, our gross margin actually expanded 350 basis points to 44%. Further evidence of our operating leverage as revenue for us is scaling.

Speaker #5: And our adjusted EBITDA, this year $200,000 has a positive EBITDA for the first time. It's in a 110% improvement from last year's negative 1.9 million in EBITDA.

Speaker #5: The 110% improvement, again, was driven by our gross margin expansion and our SGNA discipline and efficiencies. On the debt side, our total debt in 2025 was, pardon me, our total debt in 2025 was reduced by 24% with our vendor take-back debt being reduced 65% from 4.3 million.

Scott Laroche: On the debt side, our total debt in 2025 was reduced by 24% with our vendor take-back debt being reduced 65% from CAD 4.3 million to CAD 1.5 million. Of that CAD 1.5 million remaining, CAD 1 million of that will be paid in 2026, and the remainder will be paid off in 2027. Our credit facility was reduced 7% down to CAD 10.2 million. With our new banking facility, we actually have a facility up to CAD 15 million. CAD 3 million for operating and CAD 12 million for M&A. The amortization of that M&A portion in this facility has been increased from 5 years to 10 years, so significantly assisting the improvement in our cash flow.

Scott Ullrich: On the debt side, our total debt in 2025 was reduced by 24% with our vendor take-back debt being reduced 65% from CAD 4.3 million to CAD 1.5 million. Of that CAD 1.5 million remaining, CAD 1 million of that will be paid in 2026, and the remainder will be paid off in 2027. Our credit facility was reduced 7% down to CAD 10.2 million. With our new banking facility, we actually have a facility up to CAD 15 million. CAD 3 million for operating and CAD 12 million for M&A. The amortization of that M&A portion in this facility has been increased from 5 years to 10 years, so significantly assisting the improvement in our cash flow.

Speaker #5: To 1.5 million. And that 1.5 million remaining $1 million of that will be paid in 2026 and the remainder will be paid off in 2027.

Speaker #5: Our credit facility was reduced 7%, down to $10.2 million. With our new banking facility, we actually have a facility up to $15 million—$3 million for operating and $12 million for M&A.

Speaker #5: And the amortization of that M&A portion in this facility has been increased from five years to 10 years. So a significantly assisting the improvement in our cash flow.

Speaker #5: And our lease obligations, we're down 30%. Due primarily to the downsizing of a number of our offices. In particular, our Victoria Cam Loops and our Cambridge offices.

Scott Laroche: Our lease obligations were down 30% due primarily to the downsizing of a number of our offices, in particular our Victoria, Kamloops, and Cambridge offices. We have two leases coming up in the GTA in 2026, and we anticipate further efficiencies there. Can you do next slide? Yeah. Here a little bit of repetition here, but I just wanted to highlight the all the positive things that have happened with Tribe in 2025. Our total revenue, as I mentioned, CAD 32.7, up from CAD 28.3 last year. A 15.6% improvement. Gross profit, again, up to CAD 14.4 from CAD 11.4. A 26% improvement.

Scott Ullrich: Our lease obligations were down 30% due primarily to the downsizing of a number of our offices, in particular our Victoria, Kamloops, and Cambridge offices. We have two leases coming up in the GTA in 2026, and we anticipate further efficiencies there. Can you do next slide? Yeah. Here a little bit of repetition here, but I just wanted to highlight the all the positive things that have happened with Tribe in 2025. Our total revenue, as I mentioned, CAD 32.7, up from CAD 28.3 last year. A 15.6% improvement. Gross profit, again, up to CAD 14.4 from CAD 11.4. A 26% improvement.

Speaker #5: And we have two leases coming up in the GTA in 2026, and we anticipate further efficiencies there. I can do the next slide. Yeah.

Speaker #5: Here a little bit of repetition here, but I just wanted to highlight all the positive things that have happened with Tribe in 2025. Our total revenue, as I mentioned, 32.7, up from 28.3 last year, a 15.6% improvement.

Speaker #5: Gross profit, again, up from $214,400 from $11,400, a 26% improvement. Adjusted EBITDA, 100 and actually 110% improvement, up to $218,000 positive. Our net loss—still, we had a net loss of $4.5 million, but that was a significant improvement of 40% over last year, $7.5 million.

Scott Laroche: Adjusted EBITDA, actually 110% improvement, up to CAD +218,000. Our net loss, we have net loss of CAD 4.5 million, but that was a significant improvement of 40% over last year's CAD 7.5 million. Of that CAD 4.5 million, approximately CAD 2.8 million of that was depreciation and amortization, so a non-cash item. Approximately CAD 1.3 million of that net loss was interest expense. Vendor take back, as I mentioned, CAD 1.5 million. 65% improvement from CAD 4.3 million last year. Our net debt is CAD 12.5 million, down from CAD 16.1 million last year. Working capital, we're still in a deficit position, CAD 12.5 million, but an improvement from CAD 14.8 million.

Scott Ullrich: Adjusted EBITDA, actually 110% improvement, up to CAD +218,000. Our net loss, we have net loss of CAD 4.5 million, but that was a significant improvement of 40% over last year's CAD 7.5 million. Of that CAD 4.5 million, approximately CAD 2.8 million of that was depreciation and amortization, so a non-cash item. Approximately CAD 1.3 million of that net loss was interest expense. Vendor take back, as I mentioned, CAD 1.5 million. 65% improvement from CAD 4.3 million last year. Our net debt is CAD 12.5 million, down from CAD 16.1 million last year. Working capital, we're still in a deficit position, CAD 12.5 million, but an improvement from CAD 14.8 million.

Speaker #5: Of that $4.5 million, approximately $2.8 million of that was depreciation and amortization, so a non-cash item. And approximately $1.3 million of that net loss was interest expense.

Speaker #5: Vendor take-back, as I mentioned, 1.5 million, 65% improvement from 4.3 last year. And our net debt is 12.5 million, down from 16.1 last year.

Speaker #5: Working capital, we still in a deficit position, 12.5 million, but an improvement from 14.8. And part of that working capital deficit is due to our entire debt facility being classified as current, even though approximately $10 million of that is going to be amortized over 10 years.

Scott Laroche: Part of that working capital deficit is due to our entire debt facility being classified as current, even though approximately CAD 10 million of that is gonna be amortized over 10 years. Finally, our book value per share, CAD 0.10, up from CAD 0.07 last year, so a 55% improvement there. I guess with that I will turn it back to you, Joseph.

Scott Ullrich: Part of that working capital deficit is due to our entire debt facility being classified as current, even though approximately CAD 10 million of that is gonna be amortized over 10 years. Finally, our book value per share, CAD 0.10, up from CAD 0.07 last year, so a 55% improvement there. I guess with that I will turn it back to you, Joseph.

Speaker #5: And then finally, our book value per share, 10 cents up from 7 cents last year, so a 55% improvement there. And I guess with that, I will turn it back to you, Joseph.

Speaker #4: Thanks, Scott. Great job again. So, just to kind of reposition the companies in terms of people's minds—as you know, we are essentially a tech-backed services platform that goes out and satisfies all the needs from all the different strata and condo service providers, or people that need the service, on the rental management—institutional rental heavily—including single-unit rental, obviously. We do some commercial, and we do a lot of new construction projects.

Joseph Nakhla: Thanks, Scott. Great job again. Just to kind of reposition the companies in terms of people's minds, as you know, we are essentially a tech back services platform that goes out and satisfies all the needs from all the different, you know, strata and condo service providers or people that need the service on the rental management institutional rental heavily, including single unit rental. Obviously, we do some commercial, and we do a lot of new construction projects. We call that the software and service revenue. We actually lease our software, and we actually have a recurring revenue coming in. Last year was about 81.5% of our total revenue. Very steady, very heavily dependent on that.

Speaker #4: So we call that the software and service revenue. We actually lease our software, and we actually have a recurring revenue coming in. And last year, it was about 18.5% of our total revenue—very steady, very heavily dependent on that.

Speaker #4: And then we have additional revenue streams that we've always talked about, whereby due to the amount of data and the position we have between the operation of the community and the people that live in the community, we can actually connect the dots, lower operating expenses for them, and actually sell further products and services that make sense.

Joseph Nakhla: We have additional revenue streams that we've always talked about, whereby due to the amount of data and the position we have between the operation of the community and the people that live in the community, we can actually connect the dots, lower operating expenses for them, and actually sell further products and services that make sense. They tend to be higher gross margin products, slightly seasonal, depending on the activities going on, rental geography. There's multitudes of reasons why this could fluctuate up and down. However, it is an increase of about 8.8% from last year, and that's about, like I said, about 19% of our revenue. We keep adding more and more of those services. Some work really well, some obviously we pilot them to see the market.

Speaker #4: They tend to be higher gross margin products, slightly seasonal, depending on the activities. Going on rental, geography, there's multitudes of reasons why this could fluctuate up and down.

Speaker #4: However, it is an increase of about 8.8% from last year. And that's about, like I said, about 19% of our revenue. And we keep adding more and more of those services and some work really well, some obviously we pilot them to see the market.

Speaker #4: You'll see more of that in the next couple of quarters here, whereby there are actually a couple of pilots that worked out quite well and we would be going with a more aggressive approach, taking them out to our national footprint.

Joseph Nakhla: You'll see more of that in the next couple of quarters here, whereby they're actually a couple of pilots that actually worked out quite well and we'll be going a little more aggressive and taking them out to our national footprint. We have done quite a bit, as Scott had just shared with the group, the fact that our operating expenses are actually scaling up nicely as it pertains to allowing our revenue to outrun it, which is exactly what we wanna do with our cost of goods.

Speaker #4: We have done quite a bit. Scott had just shared with the group the fact that our operating expenses are actually scaling up nicely as it pertains to allowing our revenue to outrun it, which is exactly what we want to do with our cost of goods.

Speaker #4: And one of the big things we wanted to do this year is obviously add to our leadership and bring in more muscle, essentially, in the operations to help take in historically what was almost 12 companies operating under one umbrella down to two operating companies now with a third in the public company.

Joseph Nakhla: One of the big things we wanted to do this year is obviously add to our leadership and bring in more muscle essentially in the operations to help take in, you know, historically what was almost 12 companies operating under one umbrella down to two operating companies now with a third in the public company. We've added Jerome Samuels, significant amount of experience with Rogers Communications as an executive overseeing a lot of operations, M&A integrations and digital transformation. He's taken over all of our operations here. He's been with us now for three months. It's been going really well. He's brought in quite a bit of discipline around not only the integration process that we do, but also standardizing our product offering across the country for both rental and condos.

Speaker #4: So, we've added Jerome Samuels, a significant amount of experience. With Rogers Communications, as an executive overseeing a lot of operations, M&A integrations, and digital transformation.

Speaker #4: And he's taken over all of our operations here. He's been with us now for three months. He's been going really well. He's brought in quite a bit of discipline around not only the integration process that we do, but also standardizing our product offering across the country for both rental and condos, with that obviously comes a significant amount of improvement to the cost of goods, which you're starting to see now.

Joseph Nakhla: With that obviously comes a significant amount of improvement to the cost of goods, which you're starting to see now. We're getting to that mid-40s gross margin, which we anticipate will be well on its way to 50 as we continue to improve some of these projects that we're working on. We are making a big push in AI. I know everybody and their dog is talking about AI right now. We see it mostly impacting our gross margin by way of helping us from a cost of goods, onboarding buildings quicker, providing really good tools to connect the different service providers within our ecosystem in the marketplace to our customers, and actually driving a lot of transactions that help our homeowners and obviously generate revenue for us.

Speaker #4: We're getting to that mid-40s gross margin, which we anticipate will be well on its way to 50 as we continue to improve some of these projects that we're working on.

Speaker #4: We are making a big push in AI. I know everybody and their dog is talking about AI right now. We see it mostly impacting our gross margin by way of helping us from a cost of goods, onboarding buildings quicker, providing really, really good tools to connect the different service providers within our ecosystem and the marketplace to our customers.

Speaker #4: And actually driving a lot of transactions that help our homeowners and obviously generate revenue for us. So we're working across our platform right now to really continue to make that big push with AI being the backbone of our back office.

Joseph Nakhla: We're working across our platform right now to really continue to make that big push with AI being the backbone of our back office. The big advantage, in case you're wondering, that we have is, we have arguably the largest platform of condo management and rental management now in the country. Nobody has a platform like ours that serves both types of customers. The amount of data that we're sitting on is incredible. You know, as everybody would know, having one operating system with all the data stack on it and having AI now to have developed and gone as far as it has in the past 2 years, it's just a massive advantage for us to really put products and services in front of our customers.

Speaker #4: The big advantage in case you're wondering, that we have is, A, we have arguably the largest platform of condo management and rental management now in the country.

Speaker #4: Nobody has a platform like ours that serves both types of customers, but the amount of data that we're sitting on is incredible. And as everybody would know, having one operating system with all the data stacked on it and having AI now to have developed and gone as far as it has in the past two years is just a massive advantage for us to really put products and services in front of our customers.

Speaker #4: And we're starting to see the improvement of that from our view, which really means more revenue and more gross margin improvement without having to staff up to the size that we did before.

Joseph Nakhla: We're starting to see the improvement of that from our view, which really means more revenue and more gross margin improvement without having to staff up to the size that we did before. Next slide, please. Quick high level. I mean, we've joined the Canadian Chamber of Commerce. They wanted to add someone within our knowledge base and our data stack to their affordable housing committee, which is a large policy committee that actually makes recommendations to the different politicians and obviously all of the housing initiatives.

Speaker #4: Next slide, please. So, quick high-level: I mean, we've joined the Canadian Chamber of Commerce. They wanted to add someone within our knowledge base and our data stack to their Affordable Housing Committee, which is a large policy committee that actually makes recommendations to the different politicians and, obviously, all of the housing initiatives.

Speaker #4: So we've been added to that. And our goal there and our really role there is to bring in the data that speaks to not only affordability, through construction, which obviously a lot of developers can add a lot of actually a lot of light to, but really it's post when people live in these communities, post-completion.

Joseph Nakhla: We've been added to that, and our goal there and our really, role there is to bring in the data that speaks to not only affordability through construction, which obviously a lot of developers can shed a lot of light to, but really it's post when people live in these communities, post-completion. That is, we are the only member of that committee that actually can shed light on that. Our goal there is to really explain that affordability isn't just a function of construction only and how much per square foot house is available, or a condo is available, rental, or ownership. Our goal is to really shed light on the operating expenses post-completion.

Speaker #4: That is, we are the only member of that committee that actually can shed light on that. And our goal there is to really explain the affordability isn't just a function of construction only and how much per square foot house is available or a condo is available, a rental or ownership.

Speaker #4: But our goal is to really shed light on the operating expenses post-completion and I just wanted to for those that don't follow the stuff really closely, I want you to know that Build Canada or BCH, Build Canada Homes is an initiative that was announced like everybody else that was very skeptical of going in, learning about these initiatives.

Joseph Nakhla: I just wanted to, for those that don't follow this stuff really closely, I want you to know that Build Canada or BCH, Build Canada Homes, is an initiative that was announced. Like everybody else, I was very skeptical going in, learning about these initiatives. Are they gonna be where the rubber hits the road? I'm actually quite impressed with their activities. They're really to build affordable homes, obviously a massive step that they're taking. Finance affordable homes, so work through mechanics that allow these homes to be more financeable. Catalyze the housing industry by introducing programs and products that really can help connect the demand with the supply.

Speaker #4: Are they going to be where the rubber hits the road? And I'm actually quite impressed with their activities. They're really looking to build affordable homes—obviously a massive step that they're taking.

Speaker #4: Finance affordable homes, so work through mechanics that allow these homes to be more financeable. And then catalyze the housing industry by introducing programs and products that really can help connect the demand with the supply.

Speaker #4: That includes things like even improving the building code or at least taking some of the red tape that doesn't make sense on the building code that's just adding more costs.

Joseph Nakhla: That includes things like even improving the building codes or at least taking some of the red tape that doesn't make sense on the building code that's just adding more costs. What's really interesting about these initiatives that affect us is because now, A, we're in a place, thankfully, to be able to influence this. Also having looked at what they're proposing and what they're actually putting in place is a number of activities, including waiving HST and GST on condos that are for first-time buyers that are CAD 1 million or less. That's up to a CAD 130,000 discount, essentially, if you were to make a move.

Speaker #4: But what's really interesting about these initiatives that affect us is because now, A, we're in a place, thankfully, to be able to influence this, but also having looked at what they're proposing and what they're actually putting in place is a number of activities including waiving HST and GST on single on condos for first-time buyers.

Speaker #4: There are million dollars or less. That's up to $130,000 discount, essentially, if you were to make a move. Some of the stuff we haven't seen the impact of because they're just going to the market and they're contemplating putting that as a national footprint.

Joseph Nakhla: Some of the stuff we haven't seen the impact of because they're just going to the market and they're contemplating putting that as a national footprint. They're also making some really interesting moves in terms of what really impacts us, and I think that's a really good move just overall for the health of the market, is allowing developers to defer payment of HST and GST, depending on where they are, on units that they can take to the market and rent. Just to be very direct and specific from an example point of view, there is a lot of inventory sitting, closed, empty, brand new, where developers actually would like to rent it out, but the moment they take it out to the market to rent, there's actually a GST and HST liability.

Speaker #4: They're also making some really interesting moves in terms of really impacting us. And I think that's a really good move just overall for the health of the market is allowing developers to defer payment of HST and GST depending on where they are on units that can actually they can take to the market and rent.

Speaker #4: So, just to be very direct and specific from an example point of view, there are a lot of inventories sitting closed, empty, brand new, where developers actually would like to rent it out. But the moment they take it out to the market to rent, there's actually a GST and an HST liability.

Speaker #4: So, what we're speaking with the government on—and the government is actually going to be piloting that—actually, it's well on its way now.

Joseph Nakhla: What we're speaking with the government on, and the government is actually gonna be piloting that, and actually it's well on its way now, is to actually defer that for 2 years. What that allows a company like us to do is work with these developers who already have 105+ relationships with the developers to actually be able to convert that into rental inventory, take it to the market without them having to have that liability. It's deferred for 2 years. After 2 years, they can actually sell that inventory back into the condo market, which I think is a really, really good move. That's gonna add a significant amount of single unit availability in the market.

Speaker #4: It's to actually defer that for two years and what that allows the company like us to do is work with these developers who already have 105-plus relationships with those developers to actually be able to convert that into rental inventory, take it to the market without them having to have that liability.

Speaker #4: It's deferred for two years. So, after two years, they can actually sell that inventory back into the condo market, which I think is a really, really good move.

Speaker #4: That's going to add a significant amount of single-unit availability in the market. And a company like us, with the acquisition that we've made and the fact that we have that as a national footprint now, will really benefit from that to take to the market and will translate into transactional revenue for us and recurring revenue as well.

Joseph Nakhla: A company like us with the acquisition that we've made and the fact that we have that as a national footprint now, will really benefit from that take to the market and will translate into transactional revenue for us and recurring revenue as well. A lot of good policy changes that are occurring. I am hopeful that that's going to be the case. As you would probably know, and in case you don't, we're not dependent on new construction. We have a significant amount of revenue that comes from existing buildings. We do manage buildings in a healthier way. These buildings' operating expenses are much better than peers in the market. We usually speak a little bit about that, but today we're just staying high level from a financial point of view.

Speaker #4: So, a lot of good policy changes are occurring. I am hopeful that that's going to be the case. As you would probably know—and in case you don't—we're not dependent on new construction.

Speaker #4: We have a significant amount of revenue that comes from existing buildings. We do manage buildings in a healthier way. These buildings' operating expenses are much better than peers in the market.

Speaker #4: We usually speak a little bit about that, but today we're just staying high level from a financial point of view. But the buildings that we manage are better suited operationally in terms of lowering their CapEx and being ready for a rainy day.

Joseph Nakhla: The buildings that we manage are better suited operationally in terms of lowering their CapEx and being ready for a rainy day. That health is just generating more organic leads for us to actually convert into customers for us. That's all driving in the right direction. Even though it looks like there's friction in the sales transactions, it really doesn't impact us directly every day. Next slide, please. That's really our competitive advantage is this monster relationships that we have with a long list of real estate developers building nationwide.

Speaker #4: And that health is just generating more organic leads for us to actually convert into customers for us. So that's all driving in the right direction, even though it looks like there's friction in the sales transactions.

Speaker #4: It really doesn't impact us directly every day. Next slide, please. And that's really our competitive advantage—it's this monster relationships that we have with a long list of real estate developers building nationwide.

Speaker #4: We obviously have a significant number of we've announced even a really big platform that we developed in '25 for our rental institutional rental buildings, which expanded the number of types of verticals that we play in when it comes to housing and even commercial management.

Joseph Nakhla: We obviously have We've announced even a really big platform that we developed in 2025 for our institutional rental buildings, which expanded the number of types of verticals that we play in when it comes to housing and even commercial management. We keep expanding and growing all of our footprint and all those different types of services that we offer. We have just basically depth of experience. We keep accumulating great talent that comes in there. Scott was dubbed as a legend of real estate in Canada. Something that he's obviously earned over decades of great service to the industry, but also accumulated a tremendous amount of knowledge that helps us guide us as an operator in our organization.

Speaker #4: So we keep expanding and growing all of our footprint and all those different types of services that we offer. And then we have just basically depth of experience.

Speaker #4: We keep accumulating great, great talent that comes in there and Scott was dubbed as a legend of real estate in Canada, something that he's obviously earned over decades of great service to the industry, but also accumulated tremendous amount of knowledge that helps us guide us as an operator in our organization.

Speaker #4: So, we're very fortunate to be in a really well-positioned place to continue to grow our revenue and improve our profitability, and actually take advantage of what I still think is an absolute greenfield of a market.

Joseph Nakhla: We're very fortunate to be in a really well-positioned place to continue to grow our revenue and improve our profitability, and actually take advantage of what I still think is an absolute green field of a market. 2026, head down, continue to execute, focus on profitable operations. That's all we speak about in the organization, is to ensure that we have a healthy operating cost structure and bringing in organic revenue. Get to positive cash generation from operations to 2026. Always signaled that from a long time ago that we will eventually get there late 2026. Continue to, you know, obviously leverage our fact that we're full out Canadian brand now across all the different service assets that we support.

Speaker #4: So '26, head down, continue to execute. Focus on profitable operations. That's all we speak about in the organization is to ensure that we have a healthy operating cost structure and bringing in organic revenue.

Speaker #4: Get to positive cash generation from operations in 2026, of all the signals that from a long time ago, that we will eventually get there late '26.

Speaker #4: Continue to obviously leverage our fact that we're full out Canadian brand now across all of the different service assets that we support. And then continue to invest in our AI and products.

Joseph Nakhla: Then continue to invest in our AI and products. That really is focused on the cost of goods improvement. We do see that 45 moving to 50% and higher. I do think a fully baked well-oiled machine can get to mid-50s and higher in terms of margin in our business, which I think is a very, very healthy unparalleled to anybody else in the industry. Everybody else is operating at about 35%. For us to get to the 50s and higher would be a big goal for us. We are focused on organic growth. We've got a number of marketing campaigns that we're expanding now that we've taken all the brands that we've acquired over the years and consolidated them.

Speaker #4: And that really is focused on the cost of goods improvement. We do see that 45 moving to 50% and higher. I do think a fully baked well-oiled machine can get to mid-50s and higher in terms of margin in our business, which I think is a very, very healthy unparalleled to anybody else in the industry.

Speaker #4: Everybody else is operating at about 35%. So, for us to get to the 50s and higher would be a big goal for us. And we are focused on organic growth.

Speaker #4: We've got a number of marketing campaigns that we're expanding now. Now that we've taken all the brands that we've acquired over the years and consolidated them and now Tribe is a brand that's going to be very visible in all the markets we're operating in and taking advantage of all the content that we generate and have generated over the years.

Joseph Nakhla: Now Tribe is a brand that's gonna be very visible in all the markets we're operating in and taking advantage of all the content that we generate and have generated over the years. Okay. With that being said, I'll open it up for any questions, if there's any.

Speaker #4: Okay, with that being said, I'll open it up for any questions, if there's any.

Speaker #1: Joseph? Our first question comes from Sutin Sukumar of Stifel.

Operator: Joseph, our first question comes from Suthan Sukumar of Stifel.

Speaker #2: Sutin, how are you?

Joseph Nakhla: Suthan, how are you?

Speaker #3: Hey, guys. Sorry. This is SA speaking on behalf of Sutin. How's it going, guys?

[Analyst] (Stifel): Hey, guys. Sorry. This is Ate speaking.

Essey Tesfay: Hey, guys. Sorry. This is Essey speaking on behalf of Suthan.

Joseph Nakhla: Ate

Joseph Nakhla: Hi Essey

[Analyst] (Stifel): Suthan, how's it going, guys?

Essey Tesfay: How's it going, guys?

Speaker #2: Very good.

Joseph Nakhla: Very good.

Speaker #3: All right, great. I guess, firstly, a question here. With regards to new build deliveries, we're wondering what the incremental changes were versus your update last quarter.

[Analyst] (Stifel): Okay, great. I guess firstly, a question here with regards to new build deliveries. We're wondering what the incremental changes were, you know, versus your update last quarter for new build deliveries. You know, is it getting better? Is it getting worse? Any color on that would be appreciated.

Essey Tesfay: Okay, great. I guess firstly, a question here with regards to new build deliveries. We're wondering what the incremental changes were, you know, versus your update last quarter for new build deliveries. You know, is it getting better? Is it getting worse? Any color on that would be appreciated.

Speaker #3: For new build deliveries, is it getting better? Is it getting worse? Any color on that would be appreciated.

Joseph Nakhla: Yeah. Good question. Thank you. We are still very active in new build. We are the go-to company as it pertains to anybody building complex large developments. What people need to understand, and it's a fair question, is things that broke ground 5 years ago, 6 years ago, 4 years ago, are actually completing now. They're not really impacted by interest rates or any of the policy changes. We're actually seeing activity in that space. It's still there. Buildings have to come up. We have number of contracts. I'm talking 7 figures of recurring revenue of contracts that are actually on the docket that we're just onboarding basically, as this build is complete. So that's looking still the same in terms of our expectation that they will complete.

Speaker #2: Yeah. Good question. Thank you. We are still very active in new build. We are the go-to company as it pertains to anybody building complex, large developments.

Speaker #2: And what people need to understand—and it's a fair question—is that things that broke ground five years ago, six years ago, or four years ago are actually completing now.

Speaker #2: They're not really impacted by interest rates or any of the policy changes. So we're actually seeing activity in that space. It's still there. Buildings have to come up.

Speaker #2: We have a number of contracts. I'm talking seven figures of recurring revenue, of contracts that are actually on the docket, that we would just be onboarding basically as these buildings complete.

Speaker #2: So that's looking still the same in terms of our expectation that they will complete. Once a developer has borrowed money to start construction—probably sold, in many cases, especially in the West, more than 70% of the inventory—that developer has to deliver these communities.

Joseph Nakhla: Once a developer has borrowed money to start construction, probably sold in many cases, especially in the West, more than 70% of the inventory, that developer has to deliver these communities, and these communities have to be managed. It's almost irrelevant what else is going on. I think the doom and gloom that sometimes we hear in the media is very specific to starting a brand-new project, which we do recognize the stuff that would have completed three, four or five years from now have actually stalled due to the interest rates and obviously, lack of comfort from a direction point of view for the government, which I think is actually settling.

Speaker #2: And these communities have to be managed. And it's almost irrelevant to what else is going on. I think the doom and gloom that sometimes we hear in the media is very specific to starting a brand new project, which we do recognize the stuff that would have completed three, four, five years from now have actually stalled due to the lack of well, the interest rates and obviously lack of comfort from a direction point of view for the government, which I think is actually settling.

Speaker #2: So the takeaways are, stuff that was started three years ago, two years ago, four years ago, are all got to complete, which is still a part of our business.

Joseph Nakhla: The takeaways are stuff that was started 3 years ago, 2 years ago, 4 years ago, are all gonna complete, which is still a part of our business. There's still big, large development projects that have to be completed. The new construction that's being converted to rental with some of the initiatives, policy initiatives I spoke about earlier are actually happening. That rental inventory is gonna come to the market, and we're set up in multitudes of projects to drive that. New construction is still there. It's not at the level that it was maybe 10 years ago or 8 years ago.

Speaker #2: There's still big, large development projects that have to be completed. The new construction that's being converted to rental with some of the initiatives, policy initiatives I spoke about earlier are actually happening.

Speaker #2: So that rental inventory is going to come to the market. And we're set up in multitudes of projects to drive that. So new construction is still there.

Speaker #2: It's not at the level that it was maybe ten years ago, or eight years ago.

Speaker #3: Got it. Well, that's perfect. Second question is with regards to the displacement market. Similar to last question, can we get an update on just how that is progressing?

[Analyst] (Stifel): Got it. No, that's perfect. Second question is with regards to the displacement market. You know, similar to last question, could we get an update on just how that is progressing? I know you mentioned last quarter that win rates were sustaining, I think at around 30%. Should we expect the displacement opportunity to drive organic growth in the year? If I could just add on top of that, you know, Organic revenue contribution for the year, is that gonna be, you know, low to mid-double digits or closer to single digits?

Essey Tesfay: Got it. No, that's perfect. Second question is with regards to the displacement market. You know, similar to last question, could we get an update on just how that is progressing? I know you mentioned last quarter that win rates were sustaining, I think at around 30%. Should we expect the displacement opportunity to drive organic growth in the year? If I could just add on top of that, you know, Organic revenue contribution for the year, is that gonna be, you know, low to mid-double digits or closer to single digits?

Speaker #3: I know you mentioned last quarter that win rates were sustaining, I think, at around 30%. And should we expect the displacement opportunity to drive organic growth in the year?

Speaker #3: And if I could just add on top of that, in terms of organic revenue contribution for the year, is that going to be low- to mid-double digits, or closer to single digits, if you can add?

Joseph Nakhla: Yeah. We're still aiming for a double-digit organic growth year over year. The activity there is the displacement for those that don't understand it or I may not be clear, is what we call basically a community leaving its current service provider and coming to us due to multitudes of reasons. Mostly the fact that we offer them all of our software and technology, plus all the insights that they get in terms of how the building health is. We are seeing more activity on that.

Speaker #2: Yeah, we're still aiming for double-digit organic growth year over year. The activity there is the displacement—for those that don't understand it, or it may not be clear—which is what we call, basically, a community leaving its current service provider and coming to us due to a multitude of reasons, mostly the fact that we offer them all of our software and technology, plus all the insights that they get in terms of how the building health is.

Speaker #2: We are seeing more activity on that. And what I was speaking to when I said we've integrated all of our organizations is that we actually brought them into three operating companies.

Joseph Nakhla: What I was speaking to when I said we've integrated all of our organizations and actually brought them into 3 operating companies, our goal there specifically is to leverage and get the company ready to do big marketing campaigns in the markets that we're operating under one brand. That's actually starting to yield some results for us but you'll see a lot more activity on that in Q2 and Q3 of this year. Organic growth is going to come from mostly displacement and some new construction that's completed that was contracted previously.

Speaker #2: Our goal there specifically is to leverage and get the company ready to do big marketing campaigns in the markets that we're operating under one brand and that's actually starting to yield some results for us.

Speaker #2: But you'll see a lot more activity on that in the second and third quarter of this year. So organic growth is going to come from mostly displacement and some new construction that's completed that was contracted previously.

Speaker #3: Okay. Perfect. And then just lastly, as it pertains to the rental side of the business, maybe more generally, what are some targets and what phase are you in with regards to its rollout?

[Analyst] (Stifel): Okay. Perfect. Then just lastly, as it pertains to the rental side of the business, maybe more generally, what are some targets and what phase are you in with regards to its rollout? Maybe as well, maybe perhaps more importantly, what's the broader revenue opportunity for this part of the business? Is monetization going to look similar to traditional condo communities or maybe something else?

Essey Tesfay: Okay. Perfect. Then just lastly, as it pertains to the rental side of the business, maybe more generally, what are some targets and what phase are you in with regards to its rollout? Maybe as well, maybe perhaps more importantly, what's the broader revenue opportunity for this part of the business? Is monetization going to look similar to traditional condo communities or maybe something else?

Speaker #3: And maybe as well, maybe perhaps more importantly, what's the broader revenue opportunity for this part of the business? And is monetization going to look similar to traditional condo communities or maybe something else?

Speaker #2: Our rental business is more profitable than our condo business. The challenges with rental businesses usually come from on the institutional side, usually come from the fact that it's relationship-heavy.

Joseph Nakhla: Our rental business is more profitable than our condo business. The challenges with rental businesses usually come from, on the institutional side, usually come from the fact that it's relationship heavy. You gotta go out there and have an enterprise or institutional relationship with a big enterprise provider, a big REIT or what have you. We sit as good as any in the country, and that's why we've grown to become the second-largest now, especially due to acquisitions, including DMS, which was a big acquisition we've made out of Ontario. We're really well-positioned there. On the single unit rental, which is even arguably more, well, not arguably, it is more profitable even than the institutional rental.

Speaker #2: So you’ve got to go out there and have an enterprise or institutional relationship with a big enterprise provider, a big REIT, or what have you.

Speaker #2: And we sit as good as any in the country and that's why we've grown to become the second largest now, especially due to acquisitions including DMS, which was a big acquisition we've made out of Ontario.

Speaker #2: So we're really well positioned there. On the single-unit rental, which is even—arguably more, or not arguably, it is more profitable—even than the institutional rental.

Speaker #2: That's actually when we take over a building—let's say brand new or existing—and the owners of specific single-unit condos actually are seeking our services now.

Joseph Nakhla: That's actually when we take over a building, let's say brand new or existing, and the owners of specific single unit condos actually are seeking our services now. They didn't know about the fact that we offer it. Now they can read about it. They actually move away from either self-managing or managing with a third-party company and giving it to us as a big machine that can manage that for them. That's even arguably more profitable than any other line of business that we do. That's becoming more and more difficult for single unit owners to actually operate. They're actually looking for companies like us. Then there's this world of condo completion, developers that are sitting on inventory that hasn't sold to be converted. Monetization strategy, we like that business.

Speaker #2: They didn't know about the fact that we offer it. Now they can read about it. And they actually moved away from either self-managing or managing with a third-party company and given it to us as a big machine that can manage that for them.

Speaker #2: That's even, arguably, more profitable than any other line of business that we do. And that's becoming more and more difficult for single-unit owners to actually operate.

Speaker #2: So they're actually looking for companies like us. And then there's this world of condo completion developers that are sitting on inventory that hasn't sold to be converted.

Speaker #2: So, monetization strategy—we like that business. We like the gross margin profile of it quite a bit. We're very good at it. We've got tools that give us an edge over anybody else in the space.

Joseph Nakhla: We like the gross margin profile of it quite a bit. We're very good at it. We've got tools that give us an edge over anybody else in the space. It is fragmented. You'll see us be a bit more active. The big milestone I can tell you in 2025 is single unit rental grew almost 300%. That's organic and non-organic year-over-year. The revenue generating from our rental business overall grew to become almost 50% of our total revenue. That's a monster of a diversification for the business. It's my long-winded way of saying we like rental. We do, we see the monetization opportunities there as very high gross margin.

Speaker #2: It is fragmented. So you'll see us be more active the big milestone I can tell you in 2025 is single-unit rental grew almost 300%.

Speaker #2: That's organic and non-organic, year over year. But the revenue generating from our rental business overall grew to almost become almost 50% of our total revenue.

Speaker #2: And that's a monster of a diversification for the business. So it's my long-winded way of saying we like rental. We do the monetization. We see the monetization opportunities there.

Speaker #2: It's very, very high gross margin. We think the transactional part of this business—the upside is not as big as condo, because condo people that live in a condo, they live there.

Joseph Nakhla: We think the transactional part of this business is not as the upside is not as big as condo, 'cause condo, people that live in a condo, they live there, they're gonna be there for a long time, and they spend a lot more money on their condo, so there's a lot more transactional opportunities. However, overall, we love the rental business, and it goes hand in hand with everything we're offering. We think the right play, and I think we're seeing it more and more in the conversations I'm having. We think big property management national players will need to be in all these businesses to be able to leverage the scale that exists. Others haven't done it because the expertise is different, and it requires a big investment to make, which we've already made.

Speaker #2: They're going to be there for a long time. And they spend a lot more money on their condo. So there's a lot more transactional opportunities.

Speaker #2: However, overall, we love the rental business and it goes hand in hand with everything we're offering. We think the right play. And I think we're seeing it more and more in the conversations I'm having.

Speaker #2: We think big property management—national players—will need to be in all these businesses to be able to leverage the scale that exists. Others haven't done it because the expertise is different, and it requires a big investment to make, which we've already made.

Speaker #2: And we just like the fact that we're the first to leap into that space, and we think we can see why it's difficult for others.

Joseph Nakhla: We just like the fact that we're the first to leap into that space. We think that we can see why it's difficult for others. It's taken us a little bit. We're here now in terms of profitability.

Speaker #2: It’s taken us a little bit, but we’re here now in terms of profitability.

Speaker #3: Perfect. Thanks, Joseph. And yeah, thank you.

[Analyst] (Stifel): Perfect. Thanks, Joseph. Yeah, thank you.

Essey Tesfay: Perfect. Thanks, Joseph. Yeah, thank you.

Speaker #2: Thank you.

Joseph Nakhla: Thank you.

Speaker #3: Thank you, Joseph and Nesse. We now have a few questions sent in from analysts. Our first set of questions come from Gianluca Tucci of Haywood Securities.

Operator: Thank you, Joseph and Esse. We now have a few questions sent in from analysts. Our first set of questions come from Gianluca Tucci of Haywood Securities. His first question asked: How should we think about depreciation and amortization over the next few years? When do you expect the business to become cash flow positive?

Operator: Thank you, Joseph and Essey. We now have a few questions sent in from analysts. Our first set of questions come from Gianluca Tucci of Haywood Securities. His first question asked: How should we think about depreciation and amortization over the next few years? When do you expect the business to become cash flow positive?

Speaker #3: His first question asks, "How should we think about depreciation and amortization over the next few years? When do you expect the business to become cash flow positive?"

Speaker #2: Maybe I'll hand that over to you, Scott.

Joseph Nakhla: Maybe I'll hand that over to you, Scott.

Speaker #3: Yeah, let me take that one. So, depreciation and amortization—well, I would say we expect that to be in line with previous quarters. It's somewhat dependent on future acquisitions.

Scott Laroche: Yeah, let me take that one. Depreciation, amortization, well, I would say we expect that to be in line with previous quarters. It's somewhat dependent on future acquisitions. Apart from acquisitions, we're not anticipating any major fixed asset additions in 2026. There should be a slight decline in depreciation and amortization. You're asking about, I believe you said about cash flow. We forecast to be cash flow positive late 2026, early 2027.

Scott Ullrich: Yeah, let me take that one. Depreciation, amortization, well, I would say we expect that to be in line with previous quarters. It's somewhat dependent on future acquisitions. Apart from acquisitions, we're not anticipating any major fixed asset additions in 2026. There should be a slight decline in depreciation and amortization. You're asking about, I believe you said about cash flow. We forecast to be cash flow positive late 2026, early 2027.

Speaker #3: But apart from acquisitions, we're not anticipating any major fixed asset additions in 2026, so there should be a slight decline in depreciation and amortization.

Speaker #3: And you’re asking about—I believe you said—about cash flow. We forecast to be cash flow positive late 2026, early 2027.

Speaker #2: Thank you, Scott. Gianluca’s second question asks, "With the new CIBC facility in place, how are you balancing new acquisitions versus focusing on integration? What type of acquisitions are you targeting, and how do you plan to allocate the capital this year?"

Operator: Thank you, Scott. Gianluca's second question asked: With the new CIBC facility in place, how are you balancing new acquisitions versus focusing on integration? What type of acquisitions are you targeting, and how do you plan to allocate the capital this year?

Speaker #4: Well, we've got some dry powder. We're obviously one of leverage and allow our operating team to continue to improve the gross margin, as they have done a really good job the last couple of quarters.

Joseph Nakhla: Well, we've got some dry powder. We're obviously wanna leverage and allow our operating team to continue to improve the gross margin as they have done a really good job the last couple of quarters. We're cautious and selective on what we jump on from an M&A point of view. We're always open for business. We're always looking at deals. There's a very specific profile that we think satisfies our investment thesis. There's less and less of those. This is the truth. The fact that we're experiencing growth and having a very strong hold in the markets we're operating in, it doesn't necessarily mean that's how it is for everybody else. We think that will yield and squeeze opportunities for us to make moves when there is opportunities.

Speaker #4: So we're cautious in selective on what we jump on from an M&A point of view. We're always open for business. We're always looking at deals.

Speaker #4: There's a very specific profile that we think satisfies our investment thesis. There's less and less of those. This is the truth. And the fact that we're experiencing growth and having a very strong hold in the markets we're operating in, it doesn't necessarily mean that's how it is for everybody else.

Speaker #4: We think that will yield and squeeze opportunities for us to make moves when there are opportunities. But I would say our focus right now is to get the growth engine, the organic growth engine, really humming across the country.

Joseph Nakhla: I would say our focus right now is to get that growth engine, the organic growth engine, really humming across the country. It's very strong in specific markets, but we wanna make that a national play, and I think that's our biggest focus. We are open for business from an M&A point of view. We're always talking.

Speaker #4: It's very strong in specific markets, but we want to make that a national play. And I think that's our biggest focus. But we are open for business from an M&A point of view.

Speaker #4: We're always talking.

Speaker #2: Thank you, Joseph. Our next set of questions come from Daniel Rosenberg of Paradigm Capital. His first question asks, "Last quarter, you mentioned trading up to some higher margin contracts.

Operator: Thank you, Joseph. Our next set of questions come from Daniel Rosenberg of Paradigm Capital. His first question asks: Last quarter, you mentioned trading up to some higher margin contracts. Can you expand on the growth expectations and the target margin profile for 2026?

Speaker #2: Can you spend on the growth expectations and the target margin profile for 2026?"

Speaker #4: Thank you, Daniel, for paying attention. Yes, a big part of what we do is, because of the data stacks that we have, we can trade up.

Joseph Nakhla: Thank you, Daniel, for paying attention. Yes, big part of what we do is because of the data stacks that we have, we can trade up. We can see, and project challenging accounts that do deliver lower gross margin. If they're not necessarily wanting to play by the playbook that we have, we do trade up. We will fire some customers and acquire others to replace them. That will always be the case, especially as the market becomes a little bit more requiring discipline from those people that are sitting in the driving seat of these buildings. Buildings, just like everything else, assets, you have to take care of them, and you have to listen to the experts like us that are telling you how these buildings should be managed.

Speaker #4: We can see and project challenging accounts that do deliver lower gross margin and if they're not necessarily wanting to play by the playbook that we have, we do trade up.

Speaker #4: So we will fire some customers and acquire others to replace them. And that will always be the case. Especially as the market becomes a little bit more requiring discipline from those people that are sitting in the drive-in seat of these buildings.

Speaker #4: Buildings just like everything else, assets. You have to take care of them. And you have to listen to the experts like us that are telling you how these buildings should be managed.

Joseph Nakhla: Organic growth is well on its way this year. We're quite pleased with it. There will be some trade-offs as well, especially when you rebrand and have a thesis around how you want buildings to be, whether it's on the rental side or on the condo side across the country. We're quite pleased with that. There's still high level of demand in our service. A lot of inbound leads coming our way. The conversion rate is still very similar to what we had before. We always have the price lever to pull. We are not the cheapest.

Speaker #4: So, organic growth is well on its way this year. We're quite pleased with it. There will be some trade-ups as well, especially when you rebrand.

Speaker #4: And have a thesis around how you want buildings to be, whether it's on the rental side or on the condo side. Across the country.

Speaker #4: But we're quite pleased with that. There's still high level of demand on our service. A lot of inbound leads come in our way. And the conversion rate is still very similar to what we had before.

Speaker #4: We always have the price lever to pull. We are not the cheapest. We do provide a maintenance service for the value that we deliver.

Joseph Nakhla: We do provide amazing service for the value that we deliver. We do have that lever available to us. We reserve the right to use it at any point we want to win the bigger chunks of business. We are very selective at that point.

Speaker #4: But we do have that lever available to us, and we reserve the right to use it at any point we want to when the bigger chunks of business.

Speaker #4: But we're very selective at that point.

Speaker #2: Thank you, Joseph.

Operator: Thank you, Joseph. Daniel's second question asks: With the condo market where it stands, how is the company looking to balance revenue from new builds compared to growth in existing buildings?

Speaker #3: Daniel's second question asks, 'With the condo market where it stands, how is the company looking to balance revenue from new builds compared to growth in existing buildings?'

Speaker #4: Thank you, Daniel. I kind of touched on that a little bit before. Our majority of new revenue is likely coming to especially the last couple of quarters has come from existing communities that are converted to us.

Joseph Nakhla: Thank you, Daniel. I kind of touched on that a little bit before. Our majority of new revenue is likely coming to, especially last couple of quarters, has come from existing communities that are converting to us. There's still, as I mentioned earlier, a good number of contracted, ready-to-go buildings that are coming through every quarter. They're constructed, they're ready to go. We have the agreement, so we just essentially start adding the MRR to, and onboard them and add the MRR to our revenue. That will continue to be there. You can please defer to my comments earlier about the nuances of that. From a new policy point of view, as I mentioned earlier, I am very hopeful.

Speaker #4: There’s still, as I mentioned earlier, a good number of contracted, ready-to-go buildings that are coming through every quarter. They’re constructed. They’re ready to go.

Speaker #4: And we have the agreements. So we just essentially start adding the MRR, onboard them, and add the MRR to our revenue. So that will continue to be there.

Speaker #4: And please defer to my comments earlier about the nuances of that. And then, from a new policy point of view, as I mentioned earlier, I am very hopeful.

Speaker #4: I'm very bullish on this government's genuine attempt to really kick-fix the supply and demand issue that we've struggled with, because it's thinking of it, for a change, in a very, very, very constructive way.

Joseph Nakhla: I'm very bullish on this government's genuine attempt to really fix the supply and demand issue that we've struggled with because it's thinking of it for a change in a very, very, very constructive way. They actually are looking to partner with developers and give genuine tools to operators like us and people that are building and even people that are constructing, giving them the tools to lower their genuinely lower their operating expenses and actually deliver a profitable face style project that wasn't there maybe even 6 or 12 months ago. I'm very, very buoyant on that. I think we're very well-positioned to not only influence this policy, but take advantage by helping Canada essentially deliver affordable housing and manage it for them. I think overall, the country is doing the right moves.

Speaker #4: They actually are looking to partner with developers and give genuine tools to operators like us, and people that are building—and even people that are constructing—giving them the tools to genuinely lower their operating expenses and actually deliver a profitable face to a project that wasn’t there maybe even 6 or 12 months ago.

Speaker #4: So, I'm very, very buoyant on that. And I think we're very well positioned to not only influence this policy, but take advantage by helping Canada essentially deliver affordable housing and manage it for them.

Speaker #4: So I think overall, the country is doing the right moves. There's no doubt there's uncertainty up in the air. We're not really affected by it.

Joseph Nakhla: There's no doubt there's uncertainty up in there. We're not really affected by it. I've always said it, I'll continue to say it. We're pandemic-proof, interest rate-proof, you know, recession-proof. That's the business we chose. It's difficult, but we like the fact that we can just incrementally keep proving on gross margin, our revenue, and obviously our profitability profile. We've never been healthier, and 2026 is another inflection point for the company.

Speaker #4: I've always said it. I'll continue to say it. We're pandemic-proof, interest rate-proof, recession-proof. That's the business we chose. It's difficult, but we like the fact that we can just incrementally keep proving our gross margin, our revenue, and obviously our profitability profile.

Speaker #4: So we've never been healthier. And '26 is another inflection point for the company.

Speaker #2: Thank you, Joseph. There are now no further questions. I'll now pass the call back to Joseph for closing remarks.

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

Speaker #4: Well, thank you, everyone, for taking interest. I recognize there's a lot of uncertainty up in the market. All we've done is just continue to do what we've said we were going to do.

Joseph Nakhla: Well, thank you everyone for taking interest. I recognize it's a lot of uncertainty up in the market. All we've done is just continue to do what we've said we were gonna do. 25 was a inflection point in terms of turning the company from a national decentralized company to a national footprint from a size point of view and getting to EBITDA positive. Now that our focus is to get to cash generation while we've made a monster dent in our debt and get in even a healthier place. This is the way people are gonna live for decades to come.

Speaker #4: '25 was an inflection point in terms of the company, from a national decentralized company to a national footprint from a size point of view, and getting to EBITDA positive.

Speaker #4: Now that our focus is to get to cash generation, while we've made a monster dent in our debt and are getting to an even healthier place.

Speaker #4: This is the way people are going to live for decades to come. That is the new norm. And we're positioned to be the most advanced, arguably the most—not only technologically advanced, but also from a footprint and service delivery—in the verticals that we service.

Joseph Nakhla: That is the new norm, and we're positioned to be the most advanced, arguably, the most not only technologically advanced, but also from a footprint and service delivery in the verticals that we service. We're a unique company in the space, and that's always echoed to us by those that are looking at us. Watch us to be very active in the market in terms of our brand showing up all across the country, continuing to grow, and a big push towards cash flow, being cash flow positive. Thank you, everybody. We'll see you soon.

Speaker #4: We're a unique company in the space. And that's always echoed to us by those that are looking at us. So watch us to be very active in the market in terms of our brand showing up all across the country, continuing to grow, and a big push towards cash flow being cash flow positive.

Speaker #4: Thank you, everybody. We'll see you soon.

Operator: Goodbye.

Q4 2025 Tribe Property Technologies Inc Earnings Call

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