Q1 2026 NowVertical Group Inc Earnings Call

May 27, 2026

Glenn: I thank everyone on the call for joining us with this webcast this morning. Before we get started, I want to remind everyone to read the company disclaimer and forward-looking statements that you can find on page two and three of today's presentation, and on the presentation materials related to today's earnings, press release, and financial statements that are available on the company's website, investor relations section at nowvertical.com and on the sedar.com website. All figures discussed in today's call are in US dollars and will be an IFRS basis unless otherwise noted, and we will refer to specific non-IFRS such as adjusted EBITDA. Please refer to the cautionary note in our presentation and to the non-IFRS and other financial measures section of our MD&A for more detail.

[Company Representative] (NowVertical): I thank everyone on the call for joining us with this webcast this morning. Before we get started, I want to remind everyone to read the company disclaimer and forward-looking statements that you can find on page two and three of today's presentation, and on the presentation materials related to today's earnings, press release, and financial statements that are available on the company's website, investor relations section at nowvertical.com and on the sedar.com website. All figures discussed in today's call are in US dollars and will be an IFRS basis unless otherwise noted, and we will refer to specific non-IFRS such as adjusted EBITDA. Please refer to the cautionary note in our presentation and to the non-IFRS and other financial measures section of our MD&A for more detail.

Speaker #2: We thank everyone on the call for joining us with this webcast this morning. Before we get started, I want to remind everyone to read the company disclaimer and forward-looking statements that you can find on page 2 and 3 of today's presentation, and on the presentation materials related to today's earnings, press release, and financial statements that are available on the company's website investorrelations section, now www.nowvertical.com, and on the cedar.com website.

Speaker #2: All figures discussed in today's call are in US dollars and will be in IFRS basis. Unless otherwise noted, and we will refer to specific non-IFRS such as adjusted EBITDA.

Speaker #2: Please refer to the cautionary note in our presentation and to the non-IFRS and other financial measures section of our MD&A for more detail. Today's presentation will be led by Sandeep Mendurada, the company chief executive officer, who's also joined on this Zoom by Christine Nelson.

Glenn: Today's presentation will be led by Sandeep Mendiratta, the company's Chief Executive Officer, who is also joined on this Zoom by Christine Nelson, Chief Financial Officer, and Andre Garber, Chief Company Development Officer. We will break for questions at the end of management's formal remarks. During the question and answer session, we will take questions from our covering analysts over the Zoom audio and all other questions from our listeners through the webinar portal and Q&A chat box. I will remind our covering analysts to use the raise your hand feature within the portal to ask a question. Thank you again for joining us. Now I will turn the call over to Sandeep to begin this earnings call.

[Company Representative] (NowVertical): Today's presentation will be led by Sandeep Mendiratta, the company's Chief Executive Officer, who is also joined on this Zoom by Christine Nelson, Chief Financial Officer, and Andre Garber, Chief Company Development Officer. We will break for questions at the end of management's formal remarks. During the question and answer session, we will take questions from our covering analysts over the Zoom audio and all other questions from our listeners through the webinar portal and Q&A chat box. I will remind our covering analysts to use the raise your hand feature within the portal to ask a question. Thank you again for joining us. Now I will turn the call over to Sandeep to begin this earnings call.

Speaker #2: Chief financial officer and Andre Garber, chief company development officer. We'll break for questions at the end of management's formal remarks. During the question and answer session, we'll take questions from our covering analysts over the Zoom audio, and all other questions from our listeners through the webinar portal and Q&A chat box.

Speaker #2: I'll remind our covering analysts to use the raise your hand feature within the portal to ask a question. Thank you again for joining us.

Speaker #2: And now I'll turn the call over to Sandeep to begin his this earnings call.

Speaker #3: Thanks, Len. And welcome, everyone, to this call. The way we will run this call today is I will give a refresher just a background of NowVertical for our investors who are joining new to the story.

Sandeep Mendiratta: Thanks, Len. Welcome everyone to this call. The way we will run this call today is I will give a refresher, just a background of NowVertical for our investors who are joining new to the story. I will give you some growth drivers specifically of Q1 and the specific KPIs that we have been measuring for the last many quarters. I'll hand over to Christine, who will take you through all of the financial results of Q1 2026. I will take you through some specific success stories of Q1 before going into Q&A. With that, let's dive into what NowVertical does. At the core of NowVertical, we transform data into business value with AI fast. By fast, I mean these are measurable outcomes, short time to value, and repeatable delivery.

Speaker #3: I will then give you some growth drivers specifically of Q1 and the specific KPIs that we have been measuring for the last many quarters.

Speaker #3: I'll then hand over to Christine, who will take you through all of the financial results of quarter 1, 2026. And then I will take you through some specific success stories of Q1 before going into Q&A.

Speaker #3: With that, let's dive into what NowVertical does. At the core of NowVertical, we transform data into business value with AI fast. By fast, I mean these are measurable outcomes short time to value and repeatable delivery.

Speaker #3: We operate across North America and Kenya as one market and LATAM as another. Serving enterprise-grade clients in financial services, technology, media, retail, energy, and some of the other sectors.

Sandeep Mendiratta: We operate across North America and EMEA as one market and LATAM as another, serving enterprise-grade clients in financial services, technology, media, retail, energy, and some of the other sectors. We leverage the 6 foundational technology pillars that you see on the screen, the likes of Google Cloud Platform, Microsoft Azure, Amazon Web Services, Snowflake, Anaplan, and Qlik, to deliver these solutions and services to our enterprise-grade clients. This diversity of the geography sectors and technology gives us resilience and multiple growth vectors. That foundation translates into a clear operating model. Today, 83% of our revenue comes from solutions and services, and rest from products and reselling off the licenses. Within that solutions and services space, the geographic mix is 65% of that solution services revenue comes from LATAM, and 35% comes from North America and EMEA. Very importantly, this overall operating model. It performs with discipline.

Speaker #3: We leverage the six foundational technology pillars that you see on the screen, the likes of Google Cloud Platform, Microsoft Azure, Amazon Web Services, Snowflake, Anaplan, and Qlik to deliver these solutions and services to our enterprise-grade clients.

Speaker #3: This diversity of the geography sectors and technology gives us resilience and multiple growth vectors. That foundation translates into a clear operating model. Today, 83% of our revenue comes from solutions and services, and the rest from products and reselling of the licenses.

Sandeep Mendiratta: That foundation translates into a clear operating model. Today, 83% of our revenue comes from solutions and services, and rest from products and reselling off the licenses. Within that solutions and services space, the geographic mix is 65% of that solution services revenue comes from LATAM, and 35% comes from North America and EMEA. Very importantly, this overall operating model. It performs with discipline.

Speaker #3: Within that solutions and services space, the geographic mix is 65% of that solution services revenue comes from LATAM and 35% comes from North America and Kenya.

Speaker #3: Very importantly, this overall operating model performs with discipline. We are delivering over 50% gross margin and over 19% EBITDA margin. We delivered 19% EBITDA for the full 2025 year.

Sandeep Mendiratta: We are delivering over 50% gross margin and over 19% EBITDA margin. We delivered 19% EBITDA for the full 2025 year. Another important aspect, which is equally important in my opinion, is the quality of that revenue base. Approximately 70% of our revenue comes from our top 30 strategic accounts, which is quite significant, with an average lifetime value of $5.2 million. These are long-tenured enterprise relationships, exactly the kind that compound over time for us in revenue. We are deliberately narrowing our focus. Our energy goes into strategic accounts and a curated set of emerging accounts where we can build that same depth, chasing that high value, high quality revenue that actually moves the needle for us. Our delivery capability is anchored in cost-effective LATAM and India-based capabilities.

Speaker #3: Another important aspect is, which is equally important, in my opinion, is the quality of that revenue base. Approximately 70% of our revenue comes from our top 30 strategic accounts, which is quite significant.

Speaker #3: With an average lifetime value of $5.2 million these are long-tenured enterprise relationships exactly the kind that compound over time for us in revenue. And we are deliberately narrowing our focus our energy goes into strategic accounts and a curated set of emerging accounts where we can build that same depth, chasing that high value, high quality revenue that actually moves the needle for us.

Speaker #3: Our delivery capability is anchored in cost-effective LATAM and India-based capabilities. And overall, this is an operator-first model with 27% of the equity of the business owned by the management team.

Sandeep Mendiratta: Overall, this is an operator first model, with 27% of the equity of the business owned by the management team, and we are invested properly in the business. This is how we win in the market, the most important development this year is that we are codifying it. We win on three things very specifically in our market against our competition and the value that we offer to our clients. The first is we connect the customer and the finance data directly to revenue outcomes. This is critical for us and for our clients. This is where the highest value enterprise problems sit, this is exactly where our expertise is the sharpest in combining this customer and finance data to proper revenue outcomes for our clients. Second, we start small, prove the value fast, and then scale.

Speaker #3: And we are invested properly in the business. This is how we win in the development this year is that we are codifying it. We win on three things, very specifically in our market against our competition and the value that we offer to our clients.

Speaker #3: The first is we connect the customer and the finance data directly to revenue outcomes. This is critical for us and for our clients. This is where the highest value enterprise problems sit.

Speaker #3: And this is exactly where our expertise is the sharpest. In combining this customer and finance data to proper revenue outcomes for our clients. Second, we start small, prove the value fast, and then scale.

Speaker #3: So our typical engagement with any of this net new enterprise client will begin with a $50 to $150,000 pilot. Which is run over, say, six to eight weeks, typically.

Sandeep Mendiratta: Our typical engagement with any of this net new enterprise client will begin with a $50,000 to 150,000 pilot, which is run over, say, 6 to 8 weeks typically. What it does is it delivers a very measurable return on investment. What that does is it then helps us, once that value is proven, it helps us then expand company-wide. That becomes a multi-year relationship that's built on demonstrated value. The third differentiator in how we win in the market is we leverage AI to deliver for its speed and efficiency. Our agentic AI solution can automate up to 60% of the data engineering work, which is where the most of the brute force or most of the effort goes in any of these data programs. These are not just slogans. These are live examples.

Sandeep Mendiratta: Our typical engagement with any of this net new enterprise client will begin with a $50,000 to 150,000 pilot, which is run over, say, six to eight weeks typically. What it does is it delivers a very measurable return on investment. What that does is it then helps us, once that value is proven, it helps us then expand company-wide. That becomes a multi-year relationship that's built on demonstrated value. The third differentiator in how we win in the market is we leverage AI to deliver for its speed and efficiency. Our agentic AI solution can automate up to 60% of the data engineering work, which is where the most of the brute force or most of the effort goes in any of these data programs. These are not just slogans. These are live examples.

Speaker #3: And what it does is it delivers a very measurable return on investment. What that does is it then helps us, once that value is proven, it helps us then expand company-wide.

Speaker #3: That becomes a multi-year relationship that builds that's built on demonstrated value. And the third differentiator and how we win in the market is we leverage AI to deliver for its speed and efficiency.

Speaker #3: Our agentic AI solution can automate up to 60% of the data engineering work, which is where the most of the brute force or most of the effort goes in any of these data programs.

Speaker #3: These are not just slogans. These are live examples if you look on the screen. There are three different accounts that we have mentioned: a $1 million per annum revenue financial services strategic account for us, where we are generating $1 million revenue from them.

Sandeep Mendiratta: If you look on the screen, there are three different accounts that we have mentioned. A $1 million per annum revenue financial services strategic account for us, where we are generating $1 million revenue from them. Another media and telecom strategic account where we are generating $2.5 million revenue per annum from them. Just a recently acquired commercial goods emerging account, as we call them, and giving us $200,000 revenue per annum. All of these examples are running exactly the same playbook on its way up. We are making this scalable now. We are NowUnlock AI. That's going to be our delivery framework that codifies these patterns and how we win. This is a critical shift from one-off projects to repeatable platform. That's the background and how we win in the market, just as a refresher.

Speaker #3: Another media and telecom strategic account, where we are generating $2.5 million in revenue per annum from them. And just a recently acquired commercial goods emerging account, as we call them.

Speaker #3: And giving us 200,000 revenue per annum. All of these examples are running exactly the same playbook on its way up. We are making this scalable now.

Speaker #3: We are now unlocking AI. That's going to be our delivery framework that codifies these patterns and how we win. This is a critical shift from one-off projects to repeatable platform.

Speaker #3: That's the background and how we win in the market, just as a refresher. Let me bring you to Q1 specifically. Before we get into the reported revenue line, I want to set the context with the three key drivers that are actually reshaping this business.

Sandeep Mendiratta: Let me bring you to Q1 specifically before we get into the reported revenue line. I want to set the context with the three key drivers that are actually reshaping this business, and this is something that we have been communicating for many quarters since we brought in this one business, one brand strategy to the forefront. The first one is our top 30 strategic accounts grew 9%. As a share of the total revenue, it's now 73% of our overall revenue. What this showcases is our most valuable revenue is becoming a larger part of the mix. Second is the Google Cloud revenue. That grew 84%. It's now at $2.7 million in this quarter, and the share of this revenue is now 27%, up from 13% in the last year this quarter. This is our highest growth, highest quality channel, and it is now scaling for us.

Speaker #3: And this is something that we have been communicating for many quarters since we brought in this one business, one brand strategy to the forefront.

Speaker #3: So the first one is our top 30 strategic accounts grew 9%. Another share of the total revenue, it's now 73% of our overall revenue.

Speaker #3: What this showcases is our most valuable revenue is becoming a larger part of the mix. Second is the Google Cloud revenue. That grew 84%.

Speaker #3: It's now at 2.7 million in this quarter. And the share of this revenue is now 27% up from 13% in the last year, this quarter.

Speaker #3: This is our highest growth, highest quality channel. And it is now scaling. For us. The third is the integration revenue. That grew 58%. With the share rising from 11% to 19%.

Sandeep Mendiratta: The third is the integration revenue that grew 58%, with the share rising from 11% to 19%. What this showcases is both our cross-sell and the delivery engines that we are leveraging across the business is working within the markets as well as across the markets. With that, I will hand over to Christine to walk us through the financials. Christine?

Speaker #3: What this showcases is both our cross-sell and the delivery engines that we are leveraging across the business are working within the markets as well as across the markets.

Speaker #3: With that, I will hand over to Christine to walk us through the financials. Christine, thanks, Sandeep. We'll start with revenue. So revenue was $9.7 million this quarter.

Christine Nelson: Thanks, Sandeep. We'll start with revenue. Revenue was $9.7 million this quarter, down from $10.4 million year-over-year due to a decrease in the Brazil licensed maintenance reselling. However, when you set that $9.7 million alongside the last three quarters, $8.2 in Q2, $9.1 in Q3, $9.7 in Q4, what you see is a company that is back to consistency. We've grown our revenue by 18% over the past four quarters, and we've now held $9.7 million for two consecutive quarters, even considering the seasonality in LatAm in Q1. That consistency matters. It tells you it's just not a one-quarter result, it's a trajectory. Within that top-line number, the mix is improving in exactly the ways we want. As Sandeep mentioned, account revenue grew 9%, integration 58%, GCP 84%. The story here is both consistency and quality.

Speaker #3: Down from $10.4 million year over year. Due to a decrease in the Brazil licensed maintenance reselling. However, when you set that $9.7 million alongside the last three quarters, $8.2 in Q2, $9.1 in Q3, $9.7 in Q4, what you see is a company that is back to consistency.

Speaker #3: We've grown our revenue by 18% over the past four quarters. And we've now held $9.7 million for two consecutive quarters. Even considering the seasonality in Latam in Q1.

Speaker #3: And that consistency matters. It tells you it's just not a one-quarter result. It's a trajectory. Within that top-line number, the mix is improving in exactly the way as we want, as Sandeep mentioned.

Speaker #3: Account revenue grew 9%. Integration 58%. GCP 84%. So the story here is both consistency and quality. Revenue is holding strong. And the composition of that revenue getting better each quarter.

Christine Nelson: Revenue is holding strong and the composition of that revenue getting better each quarter. Now turning to profitability and EBITDA. We delivered $1.8 million of EBITDA in Q1 2026 with an EBITDA margin of 18%, exceeding the industry standards of 15%. We are proud to keep delivering best-in-class EBITDA margins despite the new investments in our commercial engines, which we started making in 2026. The $1.8 million of EBITDA is down from $2.5 million in Q1 2025 due to that decrease in Brazil reselling that I previously mentioned. While Q1 2025 did have some one-time credits received, which reduced corporate costs in that period, this was actually offset by our new investments in our commercial engine, which started in Q1 2026. Now while there was a decrease year-over-year, we have brought consistency back to our profitability with $1.8 million of adjusted EBITDA over the past three quarters.

Speaker #3: Now turning to profitability. And EBITDA. We delivered $1.8 million of EBITDA in Q1 2026 with an EBITDA margin of 18%. Exceeding the industry standards of 15%.

Speaker #3: We are proud to keep delivering best-in-class EBITDA margins despite the new investments in our commercial engines, which we started making in 2026. The $1.8 million of EBITDA is down from 2.5 million in Q1 2025 due to that decrease in Brazil reselling that I previously mentioned.

Speaker #3: While Q1 2025 did have some one-time credits received, which reduced corporate costs in that period, this was actually offset by our new investments in our commercial engine, which started in Q1 2026.

Christine Nelson: While Q1 2025 did have some one-time credits received, which reduced corporate costs in that period, this was actually offset by our new investments in our commercial engine, which started in Q1 2026. Now while there was a decrease year-over-year, we have brought consistency back to our profitability with $1.8 million of adjusted EBITDA over the past three quarters.

Speaker #3: Now, while there was a decrease year over year, we have brought consistency back to our profitability with $1.8 million of adjusted EBITDA over the past three quarters.

Speaker #3: We have been able to be consistent in that in part due to the strong gross profit margin we have, which ranges from about 48% to 50%, as well as managing our administrative spending.

Christine Nelson: We have been able to be consistent in that, in part due to the strong gross profit margin we have, which ranges from about 48% to 50%, as well as managing our administrative spending. Now turning to cash and a slide I'm proud to present. We're looking here at our operating cash flows. We've increased our cash flow from operations by $3.4 million to $1.6 million in Q1 2026, compared to $1.7 million used in cash flow from operations in Q1 2025. This is a meaningful shift and one that reflects a strong collections quarter and improved working capital management. This improvement in operating cash flow directly supports the balance sheet strength that we discussed last quarter. We are moving from a company that was managing liquidity closely to one that is generating cash. The balance sheet tells that same story.

Speaker #3: Now turning to cash and a slide I'm proud to present. So we're looking here at our operating cash flows. So we've increased our cash flow from operations by $3.4 million to $1.6 million in Q1 2026, compared to $1.7 million used in cash flow from operations in Q1 2025.

Speaker #3: This is a meaningful shift. And when the reflects a strong collections quarter and improved working capital management. This improvement in operating cash flow directly supports the balance sheet strength that we discussed last quarter.

Speaker #3: We are moving from a company that was managing liquidity closely to one that is generating cash. And the balance sheet tells that same story.

Speaker #3: We ended Q1 with $4.4 million in cash. And Q1 2026 is our second consecutive capital. We had $1 million in positive working capital this quarter, or $2 million if you exclude deferred revenue.

Christine Nelson: We ended Q1 with $4.4 million in cash. Q1 2026 is our second consecutive quarter with positive working capital. We had $1 million in positive working capital this quarter, or $2 million if you exclude deferred revenue. This is a 97% increase over Q4 2025 positive working capital. When you compare to last year, in Q1 2025, we had a working capital deficit of $7.2 million. This shows a dramatic turnaround. We also reported positive net income this quarter, our first since 2024 when we sold Allegiant. The positive net income is a direct result of the operational improvements and revenue quality we've been building towards. It was driven in part by $1.8 million in income from operations and a reduced cost of capital, thanks to the debt recap we did with HSBC UK in Q2 of last year.

Speaker #3: This is a 97% increase over Q4 2025's positive working capital. And the way you year, in Q1 2025, we had a working capital deficit of dramatic turnaround.

Speaker #3: We also reported positive net income this quarter, a first since 2024 when we sold Allegiant. The positive net income is a direct result of the operational improvements and revenue quality we've been building towards.

Speaker #3: It was driven in part by $1.0 million million in income from operations and our reduced cost of capital, thanks to the debt recap we did with HSBC UK in Q2 of last year.

Speaker #3: On leverage, our net debt to TTM adjusted EBITDA ratio stands at 1.8. A manageable level that gives us balance sheet optionality as we look ahead.

Christine Nelson: On leverage, our net debt to TTM adjusted EBITDA ratio stands at 1.8, a manageable level that gives us balance sheet optionality as we look ahead. In short, we have cash, we have positive working capital, we have positive net income, and our leverage is under control. The strategies that we put in place two years ago have been reflected both in our revenue KPIs as well as our balance sheet. This is just a fundamentally different financial position than where we were a year ago. Thank you everyone for joining, and back to you, Sandeep.

Speaker #3: In short, we have cash, we have positive working capital, we have positive net income, and our leverage is under control. The strategies that we put in place two years ago have been reflected both in our revenue KPIs as well as our balance sheet.

Speaker #3: This is just a fundamentally different financial position than where we were a year ago. Thank you, everyone, for joining. And back to you, Sandeep.

Speaker #1: I was just looking at your face, how you're smiling. It was what you said. We have cash. Thanks very much, Christine. This is really a good place to be in from the financial foundation's perspective.

Sandeep Mendiratta: I was just looking at your face, how smiley it was when you said, "We have cash." Thanks very much, Christine. This is really a good place to be in from the financial foundations perspective. Let me now take you inside Q1 itself. Like I said, a few success stories. Taken together, all of these success stories are what I mean by flywheel is turning. You remember the flywheel of growth that we have been communicating and talking about for a while. The story one is our Google Cloud relationship. We were recently recognized as Google Cloud Partner of the Year for the second consecutive year back to back.

Speaker #1: Let me now take you inside Q1 itself. Like I said, a few success stories. Taken together, all of these success stories are what I mean by flywheel is turning.

Speaker #1: You'll remember this flywheel of growth that we have been communicating and talking about for a while. The story one is our Google Cloud relationship.

Speaker #1: We were recently recognized as Google Cloud partner of the year for the second consecutive year, back-to-back. That is Google itself conforming that our delivery quality and our ability to win and grow enterprise accounts is amongst the best in their ecosystem.

Sandeep Mendiratta: That is Google itself confirming that our delivery quality and our ability to win and grow enterprise accounts is amongst the best in their ecosystem. This evolving partnership with Google also converted into another commercial outcome inside the same quarter, which I just want to relay to you. You may have seen that on the press release. We signed a $4 million three-year Google Cloud EMEA agreement with a leading regional fintech operating across Argentina, Colombia, and Mexico within LatAm. About 10% of that $4 million is going to be our net revenue, which we report in our financial statements. This is a new enterprise relationship that's landed at a material scale, exactly the type of integrated engagement that builds into the future strategic accounts. This is what we really enjoy developing further as teams.

Speaker #1: And this evolving partnership with Google also converted into another commercial outcome inside the same quarter, which I just want to really feed you. You may have seen that on the press release.

Speaker #1: We signed a $4 million three-year Google Cloud and AI agreement with a leading regional fintech operating across Argentina, Colombia, and Mexico within Latam. That's about 10% of that $4 million.

Speaker #1: It's going to be our net revenue, which we report in our financial statements. This is a new enterprise relationship that's landed at a material of integrated engagement that builds into the future strategic accounts.

Speaker #1: And this is what we really enjoy developing further as teams. So back to my partner of the year, a $4 million license and AI win.

Sandeep Mendiratta: Back to my Google Cloud Partner of the Year, a $4 million license and AI win. This basically showcases that Google relationship is now compounding. The story two, again, on the flywheel is what is happening inside our largest strategic accounts within Q1 2026. With a single strategic account in this quarter, we've signed $3.8 million of renewals and new engagements for 2026 delivery itself. Work that is squarely on connecting the customer and the finance data to revenue, exactly the kind of mandate NowVertical is built to deliver. That single decision with our client makes this account our largest ever NowVertical relationship by lifetime value. It's over $26 million lifetime value from this client for us. Step back just for a moment from the numbers. A single enterprise client chose to deepen its relationship with NowVertical across multiple work streams in a single quarter.

Speaker #1: And this basically showcases that Google relationship is now compounding. The story two, again, on the flywheel, is what is happening inside our larger strategic accounts within Q1 2026.

Speaker #1: With a single strategic account in this quarter, we signed $3.8 million of renewals and new engagements itself. Work that is squarely on connecting the customer and the finance data to revenue, exactly the kind of mandate now Vertical is built to deliver.

Speaker #1: That single decision with our client makes this account our largest ever now Vertical relationship by lifetime value. And it's over 26 million lifetime value from this client for us.

Sandeep Mendiratta: That single decision with our client makes this account our largest ever NowVertical relationship by lifetime value. It's over $26 million lifetime value from this client for us. Step back just for a moment from the numbers. A single enterprise client chose to deepen its relationship with NowVertical across multiple work streams in a single quarter.

Speaker #1: Step back just for a moment from the numbers. A single enterprise client chose to deepen its relationship with now Vertical across multiple work streams in a single quarter.

Speaker #1: Clients only do that when they see that the delivery is working and when the business outcomes for them are visible. And this is not a one-off.

Sandeep Mendiratta: Clients only do that when they see that the delivery is working and when the business outcomes for them are visible. This is not a one-off. We are seeing this pattern of demand on customer and finance data connections on data and how we deliver that to outcomes, the AI-led workflows. This is repeating across other strategic accounts. The market is moving in exactly the direction we built for. Story number three from Q1 is our playbook of start small and prove fast. This is actually working. I just wanted to give you an example of that. This is the example where in Q2 2025, we landed an emerging account as we would call it at that time, because it was small. It was an initial deal of $144,000. By the end of Q1, four quarters later, that same account has scaled to $2.8 million.

Speaker #1: We are seeing this pattern of demand on customer and finance data connecting. Connections on data and how do you deliver that to outcomes? The AI-led workflows and this is repeating across other strategic accounts.

Speaker #1: The market is moving in exactly the direction we built for. Story number three, from Q1, is our playbook of start small and prove fast.

Speaker #1: This is actually working, and I just wanted to give you an example of that. This is the example where we, in Q2 of 2025, landed an emerging account, as we would call it at that time because it was small.

Sandeep Mendiratta: This is actually working. I just wanted to give you an example of that. This is the example where in Q2 2025, we landed an emerging account as we would call it at that time, because it was small. It was an initial deal of $144,000. By the end of Q1, four quarters later, that same account has scaled to $2.8 million.

Speaker #1: It was an initial deal of $144,000. By the end of Q1, four quarters later, that same account has scaled to $2.8 million. That's what I mean by this playbook of start small.

Sandeep Mendiratta: That's what I mean by this playbook of start small and prove fast, and then scale is working. This particular arc, that modest entry, value proven quickly, and the relationship expanded into something material in under a year, is exactly the playbook we have been describing. It is not theory. It is one account, 4 quarters, 20 times growth. This is precisely why we built the emerging accounts focus into our operating model so that we can grow our top 30 to top 40 to top 50 strategic accounts over time, account by account. Putting all of these three Q1 stories together as I look at rest of 2026, we are accelerating the growth flywheel, as you can see.

Sandeep Mendiratta: That's what I mean by this playbook of start small and prove fast, and then scale is working. This particular arc, that modest entry, value proven quickly, and the relationship expanded into something material in under a year, is exactly the playbook we have been describing. It is not theory. It is one account, four quarters, 20 times growth. This is precisely why we built the emerging accounts focus into our operating model so that we can grow our top 30 to top 40 to top 50 strategic accounts over time, account by account. Putting all of these three Q1 stories together as I look at rest of 2026, we are accelerating the growth flywheel, as you can see.

Speaker #1: And prove fast. And then scale is working. This particular arc that modest entry value-proven quickly and the relationship expanded into something material in under a year is exactly the playbook we have been describing.

Speaker #1: It is not theory. It is one account, four quarters, 20 times growth. And this is precisely why we built the emerging accounts focus into our operating model, so that we can grow our top 30 to top 40 to top 50 strategic accounts over time account by account.

Speaker #1: So pulling all of these three Q1 stories together as I look at the rest of 2026, we are accelerating the growth flywheel, as you can see, three repeatable differentiators connecting customer data and finance data to revenue, starting small and scaling fast.

Sandeep Mendiratta: Three repeatable differentiators, connecting customer data and finance data to revenue, starting small and scaling fast, and AI-enhanced delivery are now being made repeatable at scale through NowUnlock framework. We are doing it on a solid foundation. The integration blueprint is in place. It can be enhanced, it can be amplified further. The operations, as you have seen from Christine's slides, they are profitable. Even the balance sheet that you saw on Christine's slide has got the optionality. That's a repeatable growth engine sitting on top of a disciplined, profitable foundation. That is what we are building today. We have strengthened the foundation, improved the quality of revenue, as you have seen, and the flywheel is turning. With that, Glenn, over to you to open up the Q&A, please.

Speaker #1: And AI-enhanced delivery are now being made repeatable at scale through now unlock framework. And we are doing it on a solid foundation. The integration blueprint is in place.

Speaker #1: And it can be enhanced. It can be amplified further. The operations as you have seen from Christine's slides, they are profitable. And even the balance sheet that you saw on Christine's slide has got the optionality.

Speaker #1: That's a repeatable growth engine sitting on top of a disciplined profitable foundation. That is what we are building today. So we have steps in the foundation.

Speaker #1: Improve the quality of revenue, as you have seen. And the flywheel is turning. With that, Glenn, over to you to open up the Q&A, please.

Speaker #2: Thank you, Sandeep. Again, to our covering analysts, we will go to you first for questions. Please use the raise your hand feature to ask a question.

Glenn: Thank you, Sandeep. Again, to our covering analysts, we will go to you first for questions. Please use the raise your hand feature to ask a question. First question will come from Suthan Sukumar with Stifel Securities. Suthan, you're live.

[Company Representative] (NowVertical): Thank you, Sandeep. Again, to our covering analysts, we will go to you first for questions. Please use the raise your hand feature to ask a question. First question will come from Suthan Sukumar with Stifel Securities. Suthan, you're live.

Speaker #2: First question, we'll come from Suthan Sukumar. With Stifle Securities. Suthan, you're live.

Speaker #3: Hey, guys. This is SA speaking on behalf of Suthan. Just two questions for me. Just one on pipeline growth. And pipeline mixed. Could you tell us how much of that is net new versus expansion business?

Esse: Hey, guys. This is Esse speaking on behalf of Suthan Sukumar. Just two questions from me. Just one on pipeline growth and pipeline mix. Could you tell us how much of that is net new versus expansion business? If I can follow on from that, how is contribution from partners looking in terms of pipeline growth, and how is that trending quarter-over-quarter and year-over-year?

Essey Tesfay: Hey, guys. This is Essey speaking on behalf of Suthan Sukumar. Just two questions from me. Just one on pipeline growth and pipeline mix. Could you tell us how much of that is net new versus expansion business? If I can follow on from that, how is contribution from partners looking in terms of pipeline growth, and how is that trending quarter-over-quarter and year-over-year?

Speaker #3: And then if I can follow on from that, how is contribution from partners looking in terms of pipeline growth? And how is that trending quarter over quarter end?

Speaker #3: And year over year?

Sandeep Mendiratta: Our pipeline growth, if you remember, I have been saying that it's completely dependent on the investment that we are making in the commercial engine, that these commercial capabilities that are must-have for any business to scale properly. Those commercial capabilities that we are investing in, and there's different parts of our business that we are taking a different approach. Those investments are beginning to give us some good signals, and these are the only signals that we want to see in our pipeline. Now, in our business, like I have been saying time and again, is it takes three to four quarters for us to see really that meaningful impact of the investments that you begin to make today, to really see those meaningful material results.

Speaker #4: Our pipeline growth, if you remember, I have been saying that it's completely dependent on the investments that we are making in the commercial engine that these commercial capabilities that are must have for any business to scale properly.

Speaker #4: So those commercial capabilities that we are investing in, there's different parts of our business that we are taking a different approach. So those investments are beginning to give us some good signals and these are the early signals that we want to see in our pipeline.

Speaker #4: Now, in our business, like I have been saying time and again, is it takes three to four quarters for us to see really that meaningful impact of the investments that you begin to make today.

Speaker #4: To really see those meaningful material results. And what we are looking forward to is giving you some more insights around how that has now translated into our pipeline build and then into the revenue as well.

Sandeep Mendiratta: What we are looking forward to is giving you some more insights around how that has now translated into our pipeline build and then into the revenue as well. All of those investments are happening as we speak every quarter. We have started it from Q1 itself. In fact, some of the groundwork was laid in Q4 last year. All of those investments are going on, and it all depends on how much we can really accelerate those investments so that we can see the results in three to four quarters' time. In terms of your other question was about the partners. Our go-to-market motion is primarily with one of the technology partners, which is Google Cloud. We are seeing definitely that traction of joint activities with Google on marketing campaigns, sales campaigns, Google bringing in some of those enterprise-grade opportunities to us.

Speaker #4: But all of those investments are happening, as we speak. Every quarter, we have started it from Q1 itself. In fact, some of the groundwork was laid in Q4 last year.

Speaker #4: So all of those investments are going on. And it all depends on how much we can really accelerate those investments so that we can see the results in three to four quarters' time.

Speaker #4: In terms of your other question was about the partners. Now, our go-to-market motion is primarily with one of the technology partners, which is Google Cloud.

Speaker #4: And we are seeing definitely that traction of joint activities with Google on marketing campaigns, sales campaigns, Google bringing in some of those enterprise-grade opportunities to us.

Sandeep Mendiratta: They bring those opportunities to us because they are confident in our ability to really grow those, prove ourselves first of all, and then grow those accounts into proper strategic accounts for us. That becomes a win-win-win situation because client gets the right value, Google gets the licensing revenue out of that, and we are able to deliver the solutions at scale for the clients. The one partner where we are seeing this shift and grow and scale, and you have seen that in the numbers as well, is the Google Cloud Platform.

Speaker #4: They bring those opportunities to us because they are confident in our ability to really grow those prove ourselves fast, first of all. And then grow those accounts into proper strategic accounts for us.

Speaker #4: That becomes a win-win-win situation because client gets the right value. Google gets the licensing revenue out of that. And we are able to deliver the solutions at scale for the clients.

Speaker #4: So the one partner where we are seeing this shift and grow and scale, and you have seen that in the numbers as well, is the Google Cloud Platform.

Speaker #3: Okay, great. Well, that's perfect. Now, for the second question, on margins, you mentioned ongoing growth investments. But it looks like we're seeing sequentially lower things like compensation costs and benefits.

Esse: Okay, great. Well, that's perfect. Now for the second question on margins. You mentioned ongoing growth investments, but it looks like we're seeing sequentially lower things like compensation costs and benefits. I think that's one of the drivers of the operating leverage in the quarter. Maybe talk about how priorities are changing there, or is this more of a timing dynamic?

Essey Tesfay: Okay, great. Well, that's perfect. Now for the second question on margins. You mentioned ongoing growth investments, but it looks like we're seeing sequentially lower things like compensation costs and benefits. I think that's one of the drivers of the operating leverage in the quarter. Maybe talk about how priorities are changing there, or is this more of a timing dynamic?

Speaker #3: I think that's one of the drivers of the operating leverage in the quarter. And so maybe talk about how priorities are changing. Or is this more of a timing dynamic?

Sandeep Mendiratta: Sorry, if you can just repeat that question, please. You are asking about the margins and how exactly are we preserving, or is it going down, and what is our strategy around the margins?

Speaker #4: Sorry, if you can just repeat that question, please. You are asking about the margins. And how exactly are we preserving? Or is it going down?

Speaker #4: And what is our strategy around the margins?

Speaker #3: Yes. Strategy on margins. We saw sequentially lower compensation costs in admin costs. So just wondering, how priorities are there? Or it's just a timing dynamic there?

Esse: Yes, strategy on margins. We saw sequentially lower compensation costs and admin costs. Just wondering how priorities are there, or it's just a timing dynamic there.

Essey Tesfay: Yes, strategy on margins. We saw sequentially lower compensation costs and admin costs. Just wondering how priorities are there, or it's just a timing dynamic there.

Christine Nelson: Sandeep, if I could add a bit of that specifically for the compensation stuff. In Q4, there were some high severance costs, when we just accrue them all at once. Q4 was a little bit higher than normal. It wasn't our average run rate. We're kind of getting back to normalcy now. That's one of the big reasons for that decline in compensation costs.

Speaker #2: Sandeep, I can add a bit of that specifically for the compensation stuff. So in Q4, there were some high severance costs. And so when we just accrue them all at once, so there was Q4 was a little bit higher than normal.

Speaker #2: So it wasn't our average run rate. So we're kind of getting back to normalcy now. So that's one of the big reasons for that decline.

Speaker #2: In compensation costs.

Speaker #3: Got it. Okay, perfect. Thank you.

Esse: Got it. Okay, perfect. Thank you.

Essey Tesfay: Got it. Okay, perfect. Thank you.

Speaker #5: Hey, once again, for any analysts on the call who wish to ask a question via the Zoom, please use the raise your hand feature.

Glenn: Okay, once again, for any analysts on the call who wish to ask a question via the Zoom, please use the raise your hand feature. We will give it a minute. Okay, I see we have a question from Martin Toner with ATB. Martin, you are live. Please proceed.

[Company Representative] (NowVertical): Okay, once again, for any analysts on the call who wish to ask a question via the Zoom, please use the raise your hand feature. We will give it a minute. Okay, I see we have a question from Martin Toner with ATB. Martin, you are live. Please proceed.

Speaker #5: We'll give it a minute. Okay, I see we have a question from Martin Toner with ATB. Martin, you are live. Please proceed.

Speaker #6: Hey, thanks for taking the question. Can you guys hear me okay?

Martin Toner: Hey, thanks for taking the question. Can you guys hear me okay?

Speaker #5: Yes.

Glenn: Yes.

[Company Representative] (NowVertical): Yes.

Speaker #6: Yeah, just wondered if the CEO can talk a little bit about pipeline how is it growing? What type of resource do you need to be put in place for it to continue to grow?

Martin Toner: Yeah, just wondered if CEO can talk a little bit about the pipeline. How's it growing? What type of resources need to be put in place for it to continue to grow? If there's any verticals in particular or use case in particular that he wants to call out.

Speaker #6: And if there's any verticals in particular or use cases in particular that he wants to call out?

Speaker #4: Yeah, I've just wanted to answer that question. So I'll probably save the audience from the repetition of that. But what we are looking at definitely is this pipeline generation and the commercial capability is a key focus for us to bake in that sustainable growth into the business.

Sandeep Mendiratta: Yeah. I just wanted to answer that question so just I'll probably save the audience from the repetition of that. What we are looking at definitely is this pipeline generation and the commercial capability is a key focus for us to bake in that sustainable growth into the business. We know that, like we showed you, the strategic accounts growth is working. The Google Cloud revenue is scaling. All of those KPIs are the right tailwinds for us, to have the conviction that we are in the right direction and this is where we can amplify our efforts. All the efforts are going into the pipeline creation within the existing strategic accounts because these are large enterprise clients. Our market share or share of wallet would be very small within these strategic accounts. There's a lot of headroom there.

Speaker #4: We know that, like we showed you, the strategic accounts growth is working—the Google Cloud revenue is scaling. All of those KPIs are the right tailwinds for us.

Speaker #4: To have the conviction that we are in the right direction and this is where we can amplify our efforts. So all the efforts are going into the pipeline creation within the existing strategic accounts because these are large enterprise clients.

Speaker #4: And our market share or share of wallet would be very small within these strategic accounts. So there's a lot of headroom there. So the efforts are going in that direction.

Sandeep Mendiratta: The efforts are going in that direction. How can we create more and more of meaningful pipeline from the existing accounts itself? At the same time, there is efforts going on in generating that net new category of the emerging accounts, as we are calling them. They are exactly the same, similar looking strategic accounts. They are our enterprise-grade clients, but our engagement may not be as deep or as long with them. There is the effort going on in how do we now generate the pipeline from the net new emerging accounts as well.

Speaker #4: How can we create more and more of meaningful pipeline from the existing accounts itself? And then at the same time, there are efforts going on in generating that net new category of the emerging accounts as we are calling them.

Speaker #4: They are exactly the same similar-looking strategic accounts. They are enterprise-grade clients, but are engagement may not be as deep or as long with them.

Speaker #4: So there is the effort going on in how do we now generate the pipeline from the net new emerging accounts as well.

Martin Toner: That's great. Is there spending or things that need to be put in place in order to facilitate further growth? Just how easy is it to grow further with Google?

Speaker #6: That's great. What kind of are there is there spending or things that need to be put in place in order to facilitate further growth?

Speaker #6: And just how easy is it to grow further with Google?

Sandeep Mendiratta: Absolutely. There's definitely the investment is going in that direction, Martin, and it only depends on how much cash is available in the business to keep funding that particular growth. If you ask about all the layers of different capabilities that we need to embed into that commercial engine, you've got very senior consultative sales kind of people who understand what a solution comprise of. They look at the problem statements of our clients, and then they translate that very nicely with the solutions that we are really good at delivering. How do you go and do that? This is very senior consultative sales style people with the consulting background as well in many cases. These are the people that you need, first of all.

Speaker #4: Yeah, absolutely. There's definitely the investment is going in that direction. Martin, and it only depends on how much cash is available in the business to keep funding that particular growth.

Speaker #4: But if you ask about the all the layers of different capabilities that we need to embed into that commercial engine, you've got very senior consultative, sales, kind of people who understand what a solution comprised of.

Speaker #4: They look at the problem statements of our clients, and then they translate that very nicely with the solutions that we are really good at delivering.

Speaker #4: How do you go and do that? So, this is very senior, consultative sales-style people, with a consulting background as well in many cases.

Speaker #4: So these are the people that you need, first of all. But what you also need to be able to cater to that demand, these senior sales consultants are bringing in, is how do you cater to that piece of demand with the right kind of technology skills, right kind of presales skills, people who can go and do those six to eight weeks very quick, prove the value-type pilots for our clients.

Sandeep Mendiratta: What you also need to be able to cater to that demand these senior sales consultants are bringing in is how do you cater to that piece of demand with the right kind of technology skills, right kind of pre-sales skills, people who can go and do those 6 to 8 weeks very quick, prove the value type pilots for our clients. You need to have that layer as well. We also want to see the subject matter experts of certain domain and the industry. When we say it's customer and finance data that we bring together, our subject matter experts are the ones who understand how the customer and finance data applies to a particular industry, like financial services, like technology, and like media and entertainment.

Speaker #4: So you need to have that layer as well. And we also want to see the subject matter experts of certain domain and the industry.

Speaker #4: So when we say it's customer and finance data that we bring together, our subject matter experts are the ones who understand how the customer and finance data applies to a particular industry like financial services, like technology, like media and entertainment.

Speaker #4: And these are the type of people you want embedded in that commercial engine. So that they can not only bring the right opportunities, but they also bring in the right magnitude and the level of credibility when they are engaging with the clients.

Sandeep Mendiratta: These are the type of people you want embedded in that commercial engine so that they can not only bring the right opportunities, but they also bring in the right magnitude and the level of credibility when we are engaging with the clients. These are the layers where we are spending and investing the money to create and amplify our commercial capabilities.

Speaker #4: So these are the layers where we are spending and investing the money to create and amplify our commercial capabilities.

Martin Toner: Fantastic. Thank you.

Speaker #6: Fantastic. Thank you.

Speaker #5: Thank you, Martin. We'll pause one more minute for any raised hands. And then Andre, assuming we have no further questions, we are ready to take questions through the Q&A chat box.

Glenn: Thank you, Martin. We'll pause one more minute for any raised hands, and then Andre, assuming we have no further questions, we are ready to take questions through the Q&A chat box, and I'll let you handle that. Andre, please proceed.

[Company Representative] (NowVertical): Thank you, Martin. We'll pause one more minute for any raised hands, and then Andre, assuming we have no further questions, we are ready to take questions through the Q&A chat box, and I'll let you handle that. Andre, please proceed.

Speaker #5: And I'll let you handle that. Andre, please proceed.

Speaker #7: So this was someone answered on the call. Turn it over to Christine first for a couple of questions. But what is the Q over Q change in current cash on hand?

Andre Garber: This was someone answered on the call. Turn it over to Christine first for a couple questions. What is the Q-over-Q change in current cash on hand?

Andre Garber: This was someone answered on the call. Turn it over to Christine first for a couple questions. What is the QoQ change in current cash on hand?

Speaker #8: Yeah, we went from 3.5 million in Q4 to 4.4 million in Q1. So an easy one there.

Christine Nelson: Yes, we went from $3.5 million in Q4 to $4.4 million in Q1. An easy one there.

Speaker #7: Okay, good. Easy is good. So can you quantify the impact of the investment, sort of picking up on what SA and Martin were asking?

Andre Garber: Okay, good. Easy is good. Can you quantify the impact of the investment, sort of picking up on what SA and Martin were asking, but can you quantify the impact of the investment in the commercial engine on the adjusted EBITDA?

Speaker #7: But can you quantify the impact of the investment in the commercial engine on the adjusted EBITDA?

Speaker #8: Yeah. So right now, it's really more on the cost side. So it's just over about $200,000 in Q1. And then we're expecting that return on the investment for us to see the actual impact and the revenue starting in Q3 and then mostly it would be in Q4 and Q1 27, trying to see that return on investment there.

Christine Nelson: Yeah. Right now, it's really more on the cost side. It's just over about $200,000 in Q1. We're expecting that return on the investment for us to see the actual impact on the revenue starting in Q3, mostly it would be in Q4 and Q1 2027, trying to see that return on investment there. Right now, it's just the cost. Just about $200,000, just over.

Speaker #8: But right now, it's just the cost. So this is about $200,000 just over.

Speaker #7: Okay. We did get a question about just profit margin quarter over quarter, but I think that kind of answers that question. But are we expecting the profit margin to improve and get over 50%?

Andre Garber: Okay. We did get a question about just profit margin quarter over quarter, but I think that kind of answers that question. Are we expecting the profit margin to improve and get over 50%? I guess this is more of a GP question than a EBITDA question.

Andre Garber: Okay. We did get a question about just profit margin quarter-over-quarter, but I think that kind of answers that question. Are we expecting the profit margin to improve and get over 50%? I guess this is more of a GP question than a EBITDA question.

Speaker #7: I guess this is more of a GP question than an EBITDA question.

Christine Nelson: We're always targeting 50% between give or take 2 points. Some of it depends on our solutions and services is really consistent. It really delivers a lot of consistency. The one thing that can fluctuate is SaaS and the reselling revenue, depending on the type of contract, who the contract's with, maybe there have been commissions paid. Those margins tend to fluctuate a little bit. Depending on whether there's a big material contract closed, that kind of can impact the gross margin. Generally, we're still kind of sticking towards the goal and the target of about 50% ±2 points there.

Speaker #8: We're always targeting like 50 between give or take two points. Some of it depends on our solutions and services is really consistent and really delivers a lot of consistency.

Speaker #8: The one thing that can fluctuate is SaaS and the reselling revenue. Depending on the type of contract or the contracts with, maybe there have been commissions paid.

Speaker #8: So those margins tend to fluctuate a little bit. So depending on whether there's a big material contract closed, that kind of impact the gross margin.

Speaker #8: But generally, we're still kind of sticking towards the goal and the target of about 50% plus or minus 2 points there.

Speaker #7: Great. A couple of questions just on billed receivables. If you can expand on the sort of quarter over quarter growth on billed receivables and just generally what is the development on that?

Andre Garber: Great. Couple questions just on unbilled receivables. If you can expand on the sort of quarter-over-quarter growth on unbilled receivables, just generally, what is the development on that? How are the current contracts different from strategic accounts and non-strategic accounts? I think if you could maybe just touch on unbilled receivables generally, that would be helpful.

Speaker #7: How are the current contracts different from kind of strategic accounts, non-strategic accounts? I think if you could maybe just touch on billed receivables generally, that would be helpful.

Speaker #8: For sure. So, when you're looking at unveiled receivables, you always want to be looking at accrued expenses at the exact same time. And the majority of our unveiled receivables are all reselling contracts.

Christine Nelson: For sure. When you're looking at unbilled receivables, you always want to be looking at accrued expenses at the exact same time. The majority of our unbilled receivables are all reselling contracts. We've talked about this before, but I'll definitely remind everyone. Under IFRS rules, you have to recognize 100% of a reselling contract at the point of delivery. Even if you close, for example, we close that EULA contract, it's over three years, you have to recognize 100% of the revenue, 100% of the cost on day one, even though you're billing them over the next three years. You close a big contract, unbilled receivables is going to increase by quite a bit. Same thing with accrued expenses. Then we also split out the long-term and the short-term portion of that.

Speaker #8: So we've talked about this before, but I'm I'll definitely remind everyone. But under IFRS rules, you have to recognize 100% of our reselling contract at the point of delivery.

Speaker #8: So even if you close, for example, we close at EULA contract, it's over three years. You have to recognize 100% of the revenue, 100% of the cost on day one.

Speaker #8: Even though you're billing them over the next three years. So you close a big contract, unveiled receivables is going to increase by quite a bit.

Speaker #8: Same thing with accrued expenses. And then we also split out the long-term and the short-term portion of that. So you'll see unveiled receivables in long-term, and you'll see accrued expenses in long-term as well.

Christine Nelson: You'll see unbilled receivables in long-term, and you'll see accrued expenses in long-term as well. That represents the portion of those contracts that are closed. One contract, nothing's happening to them, but are just going to be billed 12 months out and further. One of the big reasons it fluctuates is, for example, the $4 million EULA contract. We're going to see a large increase in unbilled receivables as it's going to be billed over the 3-year course of the contract. You're going to see an increase in both current, and in long-term as well.

Christine Nelson: You'll see unbilled receivables in long-term, and you'll see accrued expenses in long-term as well. That represents the portion of those contracts that are closed. One contract, nothing's happening to them, but are just going to be billed 12 months out and further. One of the big reasons it fluctuates is, for example, the $4 million EULA contract. We're going to see a large increase in unbilled receivables as it's going to be billed over the three-year course of the contract. You're going to see an increase in both current, and in long-term as well.

Speaker #8: And so those are the that represents the portion of those contracts that are closed: one contract, nothing's happening to them, but are just going to be billed 12 months out and further.

Speaker #8: And so one of the big reasons it fluctuates is, for example, the 4 million EULA contract, we're going to see a large increase in unveiled receivables as it's going to be billed over the three-year course of the contract.

Speaker #8: And so you're going to see an increase in both current and in long-term as well. And same impact for accrued expenses too. I hope that helps.

Andre Garber: Great.

Christine Nelson: Same impact for accrued expenses, too. I hope that helps.

Andre Garber: Great. Question for Sandeep. Are you expecting to see accelerating revenue in subsequent quarters, starting with Q1 2026? Just looking at this question, based on quarter-over-quarter comparatives as well as year-over-year, and if you can guide that. That's what the person's asking.

Speaker #7: Great. Question for Sandeep. Are you expecting to see accelerating revenue in subsequent quarters starting with Q1 2026? Just looking at this question just based on quarter over quarter comparatives as well as year over year.

Speaker #7: And if you can kind of guide that, that's what the person's asking.

Speaker #5: Yeah, that'd be a kind of guidance I'm giving you. If I mentioned that. So I would say that's the whole objective of us really creating this foundation in the business.

Sandeep Mendiratta: Yeah, that would be a kind of guidance I'm giving you if I mention that. I would say, that's the whole objective of us really creating this foundation in the business. The objective is to really create that sustainable growth and that growth rate in the business. Like I said, in our business, the investments into the commercial capabilities can take up to three to four quarters before they really give the meaningful results in terms of the revenue. What we will start sharing with you down the line in some time is how is this now translating into pipeline build, how is that translating into the revenue just from the investments that we are making in the commercial capability. Just watch out for that. We will absolutely be bringing out some of those KPIs in the future to share with the investors.

Speaker #5: The objective is to really create that sustainable growth. And that growth rate in the business. But like I said, in our business, the investments into the commercial capabilities can take up to three to four quarters before they really give the meaningful results in terms of the revenue.

Speaker #5: However, what we will start sharing with you down the line in some time is how is this now translating into pipeline build? How is that translating into the revenue just from the investments that we are making in the commercial capability?

Speaker #5: So that's just watch out for that. We will absolutely be bringing out some of those KPIs in the future to share with the investors.

Speaker #7: And then we had a question about Google just the Google relationship. Just are they an acquirer of now Vertical, like a strategic acquirer, or more of a long-term partner?

Andre Garber: We had a question about Google, just the Google relationship. Are they an acquirer of NowVertical, like a strategic acquirer or more of a long-term partner?

Speaker #5: I think I would say they're more of a long-term partner, really, for us, which is they bring the technology to us. They are a few steps removed from the clients in terms of how to deliver tangible business value.

Sandeep Mendiratta: I think I would say they're more of a long-term partner really for us, which is, they bring their technology to us. They are a few steps removed from the clients in terms of how to deliver tangible business value. This is where we come into picture. We leverage the technologies like Google and some of the others, stitch them all together so that we can solve the problem statements that clients are bringing to us. We always would need technologies like Google to work with, and more so with the AI infrastructure, because these are some massive investments that are going into the whole AI infrastructure. What we are good at is leveraging all of that technology, bring that into these solutions that really solves the tangible business problems for our clients.

Speaker #5: This is where we come into the picture. We leverage technologies like Google, among others, and stitch them all together so that we can solve the problem statements that clients are bringing to us.

Speaker #5: We always would need technologies like Google to work with. And more so with the AI infrastructure because these are some massive investments that are going into the whole AI infrastructure.

Speaker #5: And what we are good at is leveraging all of that technology to bring that into these solutions that really solves the tangible business problems for our clients.

Speaker #5: So that relationship of Google bringing the technology we then turning that into proper solutions and delivering the value to the client, that's the partnership we have with Google.

Sandeep Mendiratta: That relationship of Google bringing the technology, we then turning that into proper solutions and delivering the value to the client, that's the partnership we have with Google. I don't really necessarily see them as the acquirer. I see them as a long-term partner.

Speaker #5: So I don't really necessarily see them as the acquirer. I see them as a long-term partner.

Speaker #7: And just someone wanted to double-click on Now Unlock AI—so this is for you as well, Sandeep. If you can talk about the percentage of our solutions offered being codified through Now Unlock AI, if that data is available, and if you can give a bit of color on that. Less about percentage of revenue, but more about what is being folded into it, and what's the target for 2026?

Andre Garber: Just someone wanted to just double-click on NowUnlock AI. This is for you, Sandeep, as well. If you can talk about sort of percentage of our solutions offered being codified through NowUnlock AI, if that data is available, if you can give a bit of color on that and less about percentage of revenue, but more about what is being folded into, and what's that kind of target in 2026 to bring NowUnlock AI to life.

Andre Garber: if that data is available, if you can give a bit of color on that and less about percentage of revenue, but more about what is being folded into and what's that kind of target in 2026 to bring NowUnlock AI to life.

Speaker #7: To bring now unlock AI to life.

Speaker #5: Yeah. So now unlock AI is where we are everything that we have been doing how we are now consolidating it and codifying it so that it becomes more repeatable and scalable for our clients.

Sandeep Mendiratta: Yeah. NowUnlock AI is where we are, everything that we have been doing, how we are now consolidating it and codifying it so that it becomes more repeatable and scalable for our clients. That's what NowUnlock is. Think about a client who doesn't understand how to leverage the new age AI technologies and how to structure all of their data that is moving at faster pace than ever. How do you really experiment with those things, first of all? Make sure that those experiments are successful and the experiments can prove that they can scale and they can be productionized. The biggest challenge we are seeing with our clients is they could be picking up the experiments which are really not well thought through. They're not conceptualized properly. They're not structured to be successful even in the experimentation phase.

Sandeep Mendiratta: Yeah. NowUnlock AI is where we are. Everything that we have been doing, how we are now consolidating it and codifying it so that it becomes more repeatable and scalable for our clients. That's what NowUnlock is. Think about a client who doesn't understand how to leverage the new age AI technologies and how to structure all of their data that is moving at faster pace than ever. How do you really experiment with those things, first of all? Make sure that those experiments are successful and the experiments can prove that they can scale and they can be productionized. The biggest challenge we are seeing with our clients is they could be picking up the experiments which are really not well thought through. They're not conceptualized properly. They're not structured to be successful even in the experimentation phase.

Speaker #5: So that's what now unlock is. And think about a client who doesn't understand how to leverage the new-age AI technologies and how to structure all of their data that is moving at faster pace than ever.

Speaker #5: How do you really experiment with those things first of all? Make sure that those experiments are successful and the experiments can prove that they can scale and they can be productionized.

Speaker #5: The biggest challenge we are seeing with our clients is they could be picking up the experiments which are really not well thought through. They are not conceptualized properly.

Speaker #5: They're not structured to be successful even in the experimentation phase. And then there is no thought process around how do you scale and what actual benefits you will get out of this technology.

Sandeep Mendiratta: There is no thought process around how do you scale and what actual benefits you will get out of this technology. Consider NowUnlock as that whole framework which takes you step-by-step from how do you really conceptualize your experiments, how do you successfully experiment them by bringing in the right subject matter experts, technologists, the technology on its own, and make sure that you bring in the right champions and bring that change in the client's business so that they can adopt those experiments properly, and then define how do you productionize and scale it further so that your value from it is multifold over time with these AI technologies. That's how NowUnlock is going to bring that value to our clients.

Speaker #5: Consider now unlock as that whole framework which takes you step by step from how do you really conceptualize your experiments? How do you successfully experiment them by bringing in the right subject matter experts, technologists, the technology on its own, and make sure that you bring in the right champions and bring that change in the client's business so that they can adopt those experiments properly?

Speaker #5: And then define how you productionize and scale it further so that the value you get from it multiplies over time with these AI technologies.

Speaker #5: That's how now unlock is going to bring that value to our clients.

Speaker #7: Okay, great. One more question. Congratulations on the good quarter. One question. If you had to highlight one thing, one bad thing from the first quarter, what would it be?

Andre Garber: Okay, great. One more question. Congratulations on the good quarter. One question, if you had to highlight one bad thing from Q1, what would it be? Feels like an interview question, but we take all questions, so fire away.

Speaker #7: Feels like an interview question, but we take all questions, so it's fire away.

Speaker #5: Well, as a chief exec, I definitely want to see the business growing quarter over quarter. And as a decent-sized investor as well and shareholder in the business, I want to see that the growth is there quarter over quarter.

Sandeep Mendiratta: Well, as a chief exec, I definitely want to see the business growing quarter-over-quarter. As a decent-sized investor as well, and shareholder in the business, I want to see that the growth is there quarter-over-quarter. I'm sure all the investors here want to see that. That's one of the things which I would say we have just not been able to tangibly deliver that on the headline numbers. As you can see, all the other growth drivers there, whether strategic accounts or primarily the strategic accounts and the Google Cloud revenue, that's growing. It's showing the high-quality growth in that direction and that trajectory. One thing that I'm not very happy about is we have not been able to deliver the top-line growth, if you like, which is the focus for the future.

Speaker #5: And I'm sure all the investors here want to see that. So that's one of the things which I would say we have just not been able to tangibly deliver that on the headline numbers.

Speaker #5: But as you can see, all the other growth drivers there, whether it's strategic accounts or primarily the strategic accounts and the Google Cloud revenue, that's growing.

Speaker #5: It's showing the high-quality growth in that direction and that trajectory. So one thing that I'm not very happy about is we have not been able to deliver the top-line growth, if you like.

Speaker #5: Which is the focus for the future.

Speaker #7: Great. That concludes the open Q&A. So I'll pass it over to Glenn to close the call.

Andre Garber: Great. That concludes the open Q&A. I'll pass it over to Glenn to close the call.

Speaker #8: Thanks, Andre. Sandeep, if you have any closing remarks before we end the call?

Glenn: Thanks, Andre. Sandeep, if you have any closing remarks before we end the call?

[Company Representative] (NowVertical): Thanks, Andre. Sandeep, if you have any closing remarks before we end the call?

Speaker #5: I would just say you have seen we have completely strengthened our foundations both in terms of our business operating model as well as from the finance side.

Sandeep Mendiratta: I would just say, you have seen we have completely strengthened our foundations, both in terms of our business operating model as well as from the finance side. We have improved the quality of revenue. Our strategic revenue has come long ways and has become a large proportion of that overall revenue mix. The flywheel is turning, and we can make it go much faster, and that's what we look forward to. This is the exciting future outlook, if you like, that I have for the business.

Speaker #5: We have improved the quality of revenue our strategic revenue has come a long ways and has become a proper proportion of our a large proportion of that overall revenue mix.

Speaker #5: And the flywheel is turning and we can make it go much faster and that's what we look forward to. This is the exciting future outlook, if you like, that I have for the business.

Speaker #8: Thank you very much, Sandeep. Thank you, Andre, and thank you, Christine. Thank you, to our audience. This concludes the first quarter conference call.

Glenn: Thank you very much, Sandeep. Thank you, Andre, and thank you, Christine. Thank you to our audience. This concludes the Q1 conference call.

[Company Representative] (NowVertical): Thank you very much, Sandeep. Thank you, Andre, and thank you, Christine. Thank you to our audience. This concludes the Q1 conference call.

Speaker #5: Thank you.

Sandeep Mendiratta: Thank you.

Speaker #1: Thank you.

[Company Representative] (NowVertical): Thank you.

[Company Representative] (NowVertical): Goodbye.

Christine Nelson: Goodbye.