Q1 2026 Tribe Property Technologies Inc Earnings Call

May 26, 2026

Speaker #2: Thank you, everyone, for joining us. My name is Hittensani, and I'll be the operator for today's call. Welcome to the Tribe Property Technologies Fiscal First Quarter 2026 Financial Results Conference Call.

Operator 1: Thank you everyone for joining us. My name is Hiten Sani, and I'll be the operator for today's call. Welcome to Tribe Property Technology Fiscal Q1 2026 Financial Results Conference Call. This call is being recorded. We'll be having a question and answer session at the end of the call.

Operator: Thank you everyone for joining us. My name is Hiten Sani, and I'll be the operator for today's call. Welcome to Tribe Property Technologies' Fiscal Q1 2026 Financial Results Conference Call. This call is being recorded. We'll be having a question and answer session at the end of the call.

Speaker #2: This call is being recorded. We'll be having a question-and-answer session at the end of the call. On our call today, we have Tribe CEO Joseph Nakla and the company CFO, Scott Ulrich.

Scott Ullrich: On our call today, we have Tribe's CEO, Joseph Nakhla, and our company CFO, Scott Ullrich. I trust that everyone 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 on the safe harbor provisions of those laws. 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.

Operator: On our call today, we have Tribe's CEO, Joseph Nakhla, and our company CFO, Scott Ullrich. I trust that everyone 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 on the safe harbor provisions of those laws. 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.

Speaker #2: 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 #2: Please note, portions of today's call—other than historical performance—include statements of forward-looking information within the meaning of applicable securities laws. These statements are made in a safe harbor provision of those laws.

Speaker #2: Forward-looking statements are based on management's current views and assumptions. Please review our press release and Tribe supports filed on CR Plus for various risk factors that could cause the actual results to differ materially from our projections.

Speaker #2: 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.

Scott Ullrich: For more information on how we define these terms, please refer to the definitions set out in our management discussion 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 now turn the call over to Tribe's CEO, Joseph Nakhla.

Operator: For more information on how we define these terms, please refer to the definitions set out in our management discussion 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 now turn the call over to Tribe's CEO, Joseph Nakhla.

Speaker #2: 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 #2: With that, I will now turn the call over to Tribe CEO, Joseph Nakla.

Speaker #3: Good morning. Good afternoon, everyone. It's a pleasure being with you. Thanks again for taking an interest in our company and attending the call with us today.

Joseph Nakhla: Good morning, afternoon, everyone. It's a pleasure being with you. Thanks again for taking an interest in our company and attending the call with us today. As been really obviously highlighted in our press release, we're pleased to have another solid quarter delivering another profitable EBITDA positive quarter here, two in a row. We're quite pleased with where the company has been. Those that have been following us know the last year and a half after we built our national infrastructure, we put a lot of our effort and time into really integrating all the M&A and non-M&A kind of acquisitions that we've made that came through different divisions, restructured the whole company. End of Q4 was when we signaled that we finally took our 13 or 14 operating entities and put them into two and three.

Speaker #3: As has been obviously highlighted in our press release, we're pleased to have another solid quarter, delivering another profitable, EBITDA-positive quarter here—two in a row.

Speaker #3: And we're quite pleased with where the company has been. Those that have been following us know that the last year and a half, after we built our national infrastructure—

Speaker #3: We've put a lot of our effort and time into really integrating all the M&A and non-M&A kind of acquisitions that we've made that came through different divisions, restructured the whole company. Q4, end of Q4 was when we signaled that we finally took our 13 or 14 operating entities and put them into two and three.

Speaker #3: Q1 was the deployment of new leadership and expansion of leadership in our organization in different departments, ensuring that our back office is starting to support all those different departments with the same exact level of service that was offered in our original small office that started in Vancouver a few years ago.

Joseph Nakhla: Q1 was the deployment of new leadership and/or expansion of leadership in our organization in different departments, ensuring that our back office is starting to support all those different departments with the same exact level of service that was offered in our original small office that started in Vancouver a few years ago. Now we're quite pleased to say that we've taken some serious steps towards that. To kind of unpack the revenue a little bit more, you'll see it's about CAD 8.2 million approximately in Q1 and approximately pretty flat line from the last quarter. You'll see that in the gross margins, probably more of a function of trading up some of the revenue quality that we've been working through. You'll see a lot more new business coming through the door in Q2 and Q3.

Speaker #3: And now we're quite pleased to say that we've taken some serious steps towards that. To kind of unpack the revenue a little bit more, you'll see it's about $8.2 million.

Speaker #3: Approximately in Q1, and approximately a pretty flat line from the last quarter. That's— and you'll see that in the gross margin. It's probably a function of more, and more of a function of, trading up some of the revenue quality that we've been working through.

Speaker #3: And you'll see a lot more new business coming through the door in Q2 and Q3. And we'll shed a little more light on why that is going to be a big pillar of our growth this year.

Joseph Nakhla: We'll shed a little more light on why that is going to be a big pillar of our growth this year. Software and service recurring revenue, as you may be familiar, that is a big important line item that's actually up year over year. Some of the lower revenue came through a function of slightly less transactions. Some were related to seasonality and some related to geography. We have achieved a second, obviously, successive EBITDA quarter. I'm also not only pleased with that, but I'm also very pleased with the amount of debt that we've been able to take down. You'll see that an increase of EBITDA is down from 6.5%. Scott will walk you through that specifically. We're also incredibly pleased with the new restructured debt relationship that we've announced with the very large bank that we did in Q4.

Speaker #3: Software and service, recurring revenue as you may be familiar, that is a big important line item that's actually up year-over-year. Some of the lower revenue came through a function of slightly less transaction, some were related to seasonality and some related to geography.

Speaker #3: And we have achieved a second, obviously, a successive EBITDA quarter. I'm also not only pleased with that, but I'm also very pleased with the amount of debt that we've been able to take down.

Speaker #3: You'll see that an increase of VTB is down from 6.5%. Scott will walk you through that specifically. We're also incredibly pleased with the new restructured debt relationship that we've announced with the very large bank that we did in Q4.

Speaker #3: We're seeing the result of that. It's when it impacts our cash as well. So we're quite pleased with where the company sits there.

Joseph Nakhla: We're seeing the result of that as that lends impact on our cash as well. We're quite pleased with where the company sits there. You'll have seen also a press release. It's slightly inside ball as it pertains to the industry of us having completed 1.5 million track building deficiencies. That's our way of saying there's no other company in Canada now that has actually achieved and helped 100 plus developers deliver brand new condos and construction in more than 300 projects and allow them to use our software to run workflows from the moment there's an issue in the brand new condo, all the way to satisfactory completion with all the complexities that occur right through that. That puts us really alone up front and one of the biggest differentiator we have.

Speaker #3: And then you'll have seen also a press release, slightly inside ball as it pertains to the industry, of us having completed $1.5 million track building deficiencies.

Speaker #3: It's our way of saying there's no other company in Canada now that has actually achieved and helped 100-plus developers deliver brand new condos and construction, and more than 300 projects, and allowed them to use our software to run workflows from the moment there's an issue in the brand new condo all the way to satisfactory completion, with all the complexities that occur right through that.

Speaker #3: That puts us really alone up front. And one of the biggest differentiators we have. All that being said, I'm going to hand it over to Scott to walk you through the financials, and I'll be back with some more strategic initiatives that we're working on.

Joseph Nakhla: All that being said, I am going to hand it over to Scott to walk you through the financials. I will be back with some more strategic initiatives that we are working on. You are on mute, Scott.

Speaker #3: You're on mute, Scott.

Speaker #2: It wouldn't be a meeting if I wasn't on mute. Anyways, as I was saying, thanks, Joseph. And a lot of what I'm about to say is going to be a little bit repetitive, but I actually think it is worth repeating.

Scott Ullrich: It wouldn't be a meeting if it wasn't on mute. Anyways, as I was saying, thanks, Joseph. A lot of what I'm about to say is going to be a little bit repetitive, but I actually think it is worth repeating. As you can see from this chart here, our revenue for Q1 2026 was CAD 8.2 million compared to CAD 8 million in the same quarter of Q1 2025. We successfully maintained and improved the high revenue levels generated in 2025. A portion of that was through the Ace Agencies acquisition in June of last year. Our gross profit for Q1 2026 was CAD 3.6 million, again, compared to CAD 3.5 million for Q1 2025.

Speaker #2: As you can see from this chart here, our revenue for Q1 2026 was $8.2 million, compared to $8 million in the same quarter of Q1, 2025.

Speaker #2: We successfully maintained and improved the high revenue levels generated in 2025, and a portion of that was through the ACE Agencies' acquisition in June of last year.

Speaker #2: Our gross profit for Q1 2026 was $3.6 million, compared to $3.5 million for Q1 2025. The increase in gross profit percentage was a gain due to increased revenues, while still maintaining our salary costs that form part of the cost of services.

Scott Ullrich: The increase in gross profit percentage was a gain due to increased revenues while still maintaining our salary costs that form part of the cost of services. Our gross margin percentage was 44.2% in Q1 2026, compared to 43.5% year over year Q1 2025, a 70 basis point improvement reflecting a more profitable mix of our business, improved operating leverage, and the impact of cost optimization initiatives across the organization, British Columbia through to Ontario. Adjusted EBITDA for Q1 2026 was CAD +0.1 million, again, compared to CAD 0.3 million in Q1 2025. Now, while the prior year period benefited from delayed timing of certain operating expenses, in particular with regards to audit and legal, underlying adjusted EBITDA performance in Q1 2026 continued to reflect improved operational efficiency and disciplined cost management. Next slide, please.

Speaker #2: Our gross margin percentage was 44.2% in Q1 2026, compared to 43.5% year over year in Q1 2025. This represents a 70 basis point improvement, reflecting a more profitable mix of our business, improved operating leverage, and the impact of cost optimization initiatives across the organization.

Speaker #2: British Columbia through Ontario. Adjusted EBITDA for Q1 2026 was positive, at $0.1 million, compared to $0.3 million in Q1 2025. While the prior year period benefited from delayed timing of certain operating expenses, in particular with regards to audit and legal, underlying adjusted EBITDA performance in Q1 2026 continued to reflect improved operational efficiency and disciplined cost management.

Speaker #2: Next slide, please. As you can see here again, I'm pleased to announce that Tribe continued to make meaningful progress strengthening our balance sheet and improving cash flow in Q1 2026.

Scott Ullrich: As you can see here, again, I am pleased to announce that Tribe continued to make meaningful progress strengthening our balance sheet and improving cash flow in Q1 2026. Our vendor take-back obligations declined from CAD 4 million in Q1 2025 to CAD 1.25 million this quarter, representing a CAD 2 million or CAD 2,750,000 reduction in VTBs, which equates to 69% year-over-year reduction. I believe this reflects our company's disciplined approach to deleveraging and optimizing our acquisition-related obligations. In addition, interest expense declined 39% year over year from CAD 0.36 million last year to CAD 0.22 million, further improving cash flow and reducing our financing costs. These improvements meaningfully strengthen Tribe's, I believe, our financial position and enhance our financial flexibility as we continue executing on our long-term growth strategy. Looking ahead, we remain focused on disciplined capital management, continued debt reduction, and driving sustainable profitability, and of course, shareholder value.

Speaker #2: Our vendor takeback obligations declined from $4 million in Q1 2025 to $1.25 million this quarter, representing a $2.75 million reduction in VTBs, which equates to a 69% year-over-year reduction.

Speaker #2: And I believe this reflects our company's disciplined approach to deleveraging and optimizing our acquisition-related obligations. In addition, interest expense declined 39% year over year from $0.36 million last year to $0.22 million, further improving cash flow and reducing our financing costs.

Scott Ullrich: In addition, interest expense declined 39% year over year from CAD 0.36 million last year to CAD 0.22 million, further improving cash flow and reducing our financing costs. These improvements meaningfully strengthen Tribe's, I believe, our financial position and enhance our financial flexibility as we continue executing on our long-term growth strategy. Looking ahead, we remain focused on disciplined capital management, continued debt reduction, and driving sustainable profitability, and of course, shareholder value.

Speaker #2: These improvements meaningfully strengthen Tribe’s, I believe, our financial position and enhance our financial flexibility as we continue executing on our long-term growth strategy. Looking ahead, we remain focused on disciplined capital management, continued debt reduction, and driving sustainable profitability and, of course, shareholder value.

Speaker #2: That concludes my financial update. I'll turn it back to you, Joseph.

Scott Ullrich: That concludes my financial update. I'll turn it back to you, Joseph.

Speaker #3: Thanks, Scott. Just to reposition everyone again, our business is really focused on delivering all kinds of different services, mainly property management services for residential living in Canada.

Joseph Nakhla: Thanks, Scott. Just to reposition everyone again, our business is really focused on delivering all kinds of different services, mainly property management services for residential living in Canada. We're the third largest property management company on the condo side, second largest on the third-party rental and institutional rental management. You'll see that our software and service revenue, it continued to go in the right direction, and it's still a good chunk of our total revenue. Our transactional revenue, this is all kinds of ancillary services that we sell. Some of our are seasonal, some are regional in nature. Still very strong base, even though they did dip a little bit in that quarter, just by nature of the products and services types that we actually make available in the market for that quarter, and also the behavior of the market.

Speaker #3: We're the third-largest property management company on the condo side, and the second-largest on the third-party rental and institutional rental management side. You'll see that our software and service revenue continue to go in the right direction.

Speaker #3: And it's still a good chunk of our auto revenue. Our transaction revenue—this is all kinds of ancillary services that we sell. Some are seasonal, some are regional in nature.

Speaker #3: Still very strong base, even though there was a dip a little bit in that quarter, just by nature of the products and services types that we actually make available in the market for that quarter, and also the behavior of the market.

Speaker #3: And I'm happy to shed more light on it if there are any questions about that. Next slide, please. What is important is continuous growth in our ability to generate revenue per door.

Joseph Nakhla: I'm happy to shed more light on it if there's any questions about that. Next slide, please. What is important is continuous growth in our ability to generate revenue per door. What you'll see here is our Q1 2025 numbers versus our Q1 2026 versus 2025. You'll see our software services and revenue. This is a very sticky recurring revenue, continues to go in the right direction. The transactional revenue dipped just a touch as you can see. However, that is, as I mentioned, it's a function of the regional nature and the seasonality. You'll see our total revenue per door continues to be growing. I would say it's industry leader. What's most important about that is that our buildings do not spend more money because we actually generate more revenue. Our buildings that we manage are healthier.

Speaker #3: And what you'll see here is our Q1 2025 numbers versus our Q1 2026, versus 2025. You'll see our software services and revenues, as a very sticky recurring revenue, continue to go in the right direction.

Speaker #3: The transactional revenue dipped just a touch, as you can see. However, that is, as I mentioned, it's a function of the regional nature and the seasonality.

Speaker #3: And then you'll see our total revenue per door is continues to be growing. I would say it's industry leader what's most important about that is that our buildings do not spend more money because they are actually we actually generate more revenue.

Speaker #3: Our buildings that we manage are healthier. They still, within comparison—apples to apples—to the rest of the industry, or benchmarked next to their buildings next door, are actually spending overall less money to operate. And that's due to the financial planning, the future-proofing, and the discipline we have.

Joseph Nakhla: They're still within comparison, apples to apples, to the rest of the industry or benchmarked next to their buildings next door are actually spending overall less money to operate. That's due to the financial planning, the future-proofing, and the discipline we have. I would also say that our technology plays a big role in limiting the number of mistakes that occur, which unfortunately, because of the complexity of residential living and managing these buildings, happens in multitudes of companies. I'm sure it happens to us as well, but it's definitely limited due to the number of workflows that we've been able to automate and actually catch and benchmark different categories and catch those issues really early. Next slide, please. Wanted to shed a little bit more light.

Speaker #3: I would also say that our technology plays a big role in limiting the number of mistakes that occur, which unfortunately, because of the complexity of residential living and managing these buildings, happens in multitudes of companies.

Speaker #3: And I'm sure it happens to us as well, but it's definitely limited due to the number of workflows that we've been able to automate, and actually catch and benchmark different categories, and catch those issues really early.

Speaker #3: Next slide, please. I wanted to shed a little bit more light. It seemed like a lot more people on the street were intrigued about our approach and wanted to learn more about it.

Joseph Nakhla: It seemed a lot more of people on the street were intrigued about our approach and wanted to learn more about it. This concept of the operator as a platform is one. It's kind of inside view into how we operate as an organization. I'm gonna start from the bottom up. We are a service layer heavy company. That is our way of saying the expertise that are required to help a large developer building a neighborhood-changing community in terms of bringing in 500 or 1,000 homes that come in different categories. 1 category could be condo. Next to it could be a rental building, maybe even some not-for-profit mixed in with some, at the very bottom, retail and maybe some office space. That service layer requires a level of expertise, licensing, compliance, and rigor understanding of what the particular market needs.

Speaker #3: This concept of the operator as a platform is one—it's kind of an inside view into how we operate as an organization. I'm going to start from the bottom up.

Speaker #3: We are a service layer-heavy company, in that— that is our way of saying the expertise that is required to help a large developer building a neighborhood-changing community, in terms of bringing in 500 or 1,000 homes that come in different categories.

Speaker #3: One category could be condo. Next to it could be a rental building, maybe even some not-for-profit mixed in, with some at the very bottom retail and maybe some office space.

Speaker #3: That service layer requires a level of expertise, licensing compliance, and a rigorous understanding of what the particular market needs. That's why we are licensed and operate across the country.

Joseph Nakhla: That's why we are licensed and operate across the country. That service layer is heavily aided by our software layer. This is our own dog food that we've built over the years. It's tried, tested, and true, always going through different modernization. What that software layer does is it looks at 200+ workflows, very specific. Could be as simple as allowing a resident to make a payment. It could be as complex as navigating through and aiding a big capital project for a building. On top of that sits a data layer that we've been able to accumulate, and you can argue, well, doesn't every property management company have data? They don't have them sit in digitized or don't have them predictive, or they don't have them even benchmarkable.

Speaker #3: And that service layer is heavily aided by our software layer. This is our own dog food that we built over the years. It’s tried, tested, and true.

Speaker #3: Always going through different modernization. And with that software layer, it looks at 200-plus workflows, very specific. Could be as simple as allowing a resident to make a payment.

Speaker #3: It could be as complex as navigating through and aiding a big capital project for a building. On top of that sits a data layer that we've been able to accumulate, and you can argue, why doesn't every property management company have data?

Speaker #3: Yeah, but they don't have them sit in digitized, or they don't have them predictive, or they don't have them even benchmarkable. And the difference with us is, all of our data sit in pools, and these pools go into a big lake, and that lake essentially allows us to help make better decisions on behalf of that community.

Joseph Nakhla: The difference with us is all of our data sit in pools, and these pools go into a big lake, and that lake essentially allows us to help make better decisions on behalf of that community. That's where the AI layer on the very top sits. While we're just scratching the surface on that, I know it's a very topical approach. I'm here to tell you that we've been actually behind the scenes using AI for a couple of years on the benchmarking side, where AI is starting to play a bigger role in our existence as an organization, is allowing people to do self-service and self-help as it pertains to homeowners being able to get quicker, more intelligent answers.

Speaker #3: And that's where the AI layer on the very top sits, and while we're just scratching the surface on that, I know it's a very topical approach.

Speaker #3: And I'm here to tell you that we've actually been, behind the scenes, using AI for a couple of years on the benchmarking side. Where AI is starting to play a bigger role in our existence as an organization is allowing people to do self-service and self-help, as it pertains to our homeowners being able to get quicker, more intelligent answers.

Speaker #3: Our benchmarking in terms of identifying outliers and issues with buildings—obviously, the AI layer can play a major role there. But it can do a significant amount of heavy lifting behind the scenes, specifically when it comes to the ability to organize workflows within our organization.

Joseph Nakhla: Our benchmarking in terms of identifying outliers and issues with buildings, obviously, AI layer can play a major role there, but it can do a significant amount of heavy lifting behind the scenes, specifically when it comes to the ability to organize workflows within our organization. Again, we're just scratching the surface on that, and you'll see more and more of that affecting our service delivery in a positive way. We think that's going to not only impact the NPS scores and the satisfaction of our customers, and we sit on top of the industry right now as far as the satisfaction is concerned. A difficult industry to create raving fans simply because everybody's very emotional when it comes to their homes.

Speaker #3: And again, we're just scratching the surface on that, and you'll see more and more of that affecting our service delivery in a positive way.

Speaker #3: And we think that's MPS scores and the satisfaction of our customers. And we sit on top of the industry right now as far as the satisfaction is concerned. It's a difficult industry to create raving fans, simply because everybody's very emotional when it comes to their homes.

Speaker #3: All that being said, I think we're going to take even another leap forward with what AI is going to do, and it's going to also impact our gross margin meaningfully, as well as open up further doors for revenue streams that can help the buildings be managed properly and also generate further revenue for us.

Joseph Nakhla: All that being said, I think we're going to take even another leap forward with what AI is going to do, and it's going to also impact our gross margin meaningfully, as well as open up further doors for revenue streams that can help the buildings be managed properly and also generate further revenue for us. Next slide, please. That strategic position is why we're the most unique company of our kind in the space. We work directly, and we have product streams for developers, obviously boards, and owners and landlords, products and services, either on the asset management or single-unit management. We are in heavy touch with the residents. We have a significant amount of knowledge of who they are, what their needs are, and we can actually predict further and further down the line here what products and services would make sense for them.

Speaker #3: Next slide, please. And that's the strategic position—it's why we're the most unique company of our kind in the space. We work directly, and we have product streams for developers.

Speaker #3: Obviously, boards and owners and landlords, products and services, either on the asset management or single unit management. We are heavy touch with the residents.

Speaker #3: We have a significant amount of knowledge of who they are, what their needs are, and we can actually predict, further and further down the line here, what products and services would make sense for them.

Speaker #3: Obviously, we think we're a great home for property managers—especially ones that want to be involved in the evolution of what that role looks like.

Joseph Nakhla: We think we're a great home for property managers, especially ones that want to be involved in the evolution of what that role looks like. You look at our property managers, we're incredibly proud of them. We keep adding to them. That profile looks even different from an industry point of view. Our vendors love us simply because a lot of our tools that we're using allow them to bid properly, be able to be at the forefront of what's required, and be able to even start planning forward with future-proofing the health of these buildings. You're going to see more announcements on that this year. We're unique because we actually have a capital projects division, very unique to a residential property management company. That division is actually going national as we speak.

Speaker #3: You look at our property managers—we're incredibly proud of them. We keep adding to them, and that profile looks even different from an industry point of view.

Speaker #3: Our vendors love us simply because a lot of the tools that we're using allow them to bid properly, be able to be at the forefront of what's required, and be able to even start planning forward with future-proofing the health of these buildings. And you're going to see more announcements on that this year.

Speaker #3: And then we're unique because we actually have a Capital Projects division—very unique to a residential property management company. That division is actually going national as we speak.

Speaker #3: We're working through the legal and compliance requirements there, simply because every building that ages requires capital management. And we are not only the number one company—it's well documented that we generate a significant amount of dollars and help put money away for a rainy day for these buildings—but we also now can help them allocate that capital into the right projects to ensure that the value of their homes is really high.

Joseph Nakhla: We're working through the legal and compliance requirements there simply because every building that ages requires capital management. We are not only the number one company, it's well documented that we generate a significant amount of dollars and help put money for a rainy day for these buildings, but we also now can help them allocate that capital in the right projects to ensure that the value of their homes is really high. We obviously have very detailed financial workflows with all of our integrations. All of that, we just sit on a pool of data products that really help, again, benchmark how the buildings are doing, how they should be doing, and identify areas that we think we can bring our workflows to help improve the operating costs of these buildings. Next slide, please. Quick market update.

Speaker #3: We obviously have very detailed financial workflows with all of our integrations. And then, all of that, we just sit on a pool of data products that really help, again, benchmark how the buildings are doing, how they should be doing.

Speaker #3: And identify areas that we think we can bring our workflows to help improve the operating cost of these buildings. Next slide, please. Quick market update.

Speaker #3: Nothing earth-shattering has changed in the last four weeks since we've seen you last. However, there's been some announcements, as you'll have read, about these pooled funds that are going to the market to actually take advantage of what may be unsold brand new condos in different parts of Canada, whereby they're going out to accumulate these condos, maybe buy them at a little bit of a wholesale price from developers that actually want to hand over that building.

Joseph Nakhla: Nothing earth-shattering has changed in the last four weeks since we've seen you last. However, there's been some announcements, as you'll have read, about these pooled funds that are going to the market to actually take advantage of what may be unsold brand-new condos in different parts of Canada, whereby they're going out to accumulate these condos, maybe buy them at a little bit of a wholesale price from developers who actually want to hand over that building. I spoke about that a year ago, and it looks like it's actually coming together now in terms of dollars. We still need help from the government. We're doing our best to be a voice of reason, to explain why operationally the government has to step in and create some incentives, not necessarily financial incentives, but maybe tax incentives for these pools that are coming in.

Speaker #3: And those types I spoke about a year ago, and it looks like it's actually coming together now in terms of dollars. We still need help from the government.

Speaker #3: We're doing our best to be a voice of reason to explain why, operationally, the government has to step in and create some incentives—not necessarily financial incentives, but maybe tax incentives—for these pools that are coming in.

Speaker #3: So we're seeing a lot more activity there. We're pleased to say that the government's approach to deferring some of the HST and GST—either waiving them for brand new buyers for units that are a million dollars or less, and/or contemplating deferring them for developers that actually want to take unsold inventory and rent it out—is helping.

Joseph Nakhla: We're seeing a lot more activity there. We're pleased to say that the government's approach to deferring some of the HST and GST for either waiving them for brand-new buyers for units that are CAD 1 million or less and/or contemplating deferring them for developers who actually want to take unsold inventory and renting it out. We're in talks with multitudes of developers about that. If the government would just defer that for 2 years or 3 years, so a developer does not have the obligation of paying HST or GST on a unit that hasn't sold, that's being rented under their umbrella. If we can actually get that to go over the line, which I'm positive, or at least have positive feelings about it coming to fruition, that will go a long way. We've got multitudes of developers that we work with.

Speaker #3: And we're in talks with multitudes of developers about that. If they can—if the government would just defer that for two years or three years so a developer does not have the obligation of paying HST or GST on a unit that hasn't sold that's being rented under their umbrella.

Speaker #3: If we can actually get that to go over the line, which I'm positive—or at least have positive feelings—about it coming to fruition.

Speaker #3: That will go a long way. We've got multitudes of developers that we work with. Like I mentioned earlier, we work with more than 100 that actually have the desire to actually get those out in the market for, in a rental pool.

Joseph Nakhla: I mentioned earlier, work with more than 100 that actually have the desire to actually get those out in the market in a rental pool. We've actually created a number of really cool products that can help make and give them more incentive to either put them in a rental pool and hold onto them, or put them in a rental pool and sell them to investors. In both cases, we've got products that are actually very specific to it. I'm also hopeful that all I'm hearing at the Ministry of Housing level is that there's going to be a significant reform of the approach of allowing developers to get their permits.

Speaker #3: We've actually created a number of really cool products that can help make them more attractive and give them more incentive to either put them in a rental pool and hold on to them, or put them in a rental pool and sell them to investors.

Speaker #3: In both cases, we've got products that are actually very specific to it. I'm also hopeful that all I'm hearing at the Ministry of Housing level is that there's going to be a significant reform of the approach of allowing developers to get their permits, management of costs—even shrinking the time from the moment people apply to the moment they get the permit would actually translate into quite a bit of capital that would go back into the construction pool, whereby people can actually put the shovel on the ground quicker and actually deploy quicker.

Joseph Nakhla: Management of costs, even shrinking the time from the moment people apply to the moment they get the permit, would actually translate into quite a bit of capital that would go back into the construction pool, whereby people can actually put the shovel in the ground quicker and actually deploy quicker. As you will have heard me say before, we were arguably the property management company in Canada that has the largest number of future contracts for brand-new construction coming through the door, eventually going to get built. We're just hoping more and more that the government kind of makes it easier. Now, it's more complicated. It's not a federal problem. It's a federal and all the way down to a municipal level. It has to be a coherent strategy there. I am hopeful that that will be changing. They're saying all the right things. Next slide, please.

Speaker #3: As you will have heard me say before, we were arguably the property management company in Canada that has the largest number of future contracts for brand new construction coming through the door.

Speaker #3: Eventually going to get built, we're just hoping more and more that the government kind of makes it easier. Now, it's more complicated. It's not a federal problem.

Speaker #3: It's not only a federal issue; it goes all the way down to the municipal level. So, there has to be a coherent strategy there. I am hopeful that that will be changing.

Speaker #3: And they're saying all the right things. Next slide, please. So, going back to the formula for success, we've been quietly—and I would even argue that this street hasn't even given us the love that we deserve for what we've been able to do.

Joseph Nakhla: Going back to the formula for success, we've been quietly, and I would even argue that the street hasn't even given us the love that we deserve and what we've been able to do. We've been quietly going out there and building the largest repository of homes under management with a significant large number of digitized vendors now that actually have a full digital workflow to conduct all that work and business through our buildings that we manage. We've been able to obviously streamline processes. We quite easily have the largest number of workflows that have been either automated or being automated in the industry, and that's reflected in the way we deliver the service.

Speaker #3: But we've been quietly going out there and building the largest repository of homes under management, with a significantly large number of digitized vendors now that actually have a full digital workflow to conduct all that work and business through our buildings that we manage.

Speaker #3: We've been able to, obviously, streamline processes. We quite easily have the largest number of workflows that have been either automated or are being automated in the industry.

Speaker #3: And that's reflected in the way we deliver the service. We would argue again that we have one of the most intelligent service layers that sits on top to allow our key property managers, and those that are actually responsible—where the rubber hits the road in terms of delivering the service—to actually make better decisions.

Joseph Nakhla: I would argue again, that we have one of the most intelligent service layer that sits on top that allow our key property managers and those that are actually responsible where the rubber hits the road in terms of delivering the service to actually make better decisions, and that's reflected holistically at the macro level when you look at our portfolio of buildings, how well they're managed and how future-proof they are in terms of capital expectation for the next 5 to 10 years, versus other buildings that we do not manage or managed by other traditional models. We have the ability to continue to measure improvements, and we keep putting that in front of our condo corporations and rental.

Speaker #3: And that's reflected holistically at the macro level when you look at our portfolio of buildings, how well they're managed, and how future-proof they are in terms of capital expectation for the next five to ten years, versus other buildings that we do not manage or are managed by other traditional models.

Speaker #3: And we have the ability to continue to measure improvements. And we keep putting that in front of our condo corporations and rental and we in Q1, we actually had actually post-Q1, we had a Tribe Expo whereby we invited a lot of our customers in BC to come and have a number of work sessions whereby we brought in some expertise on the legal side, insurance side, and a few other areas to speak about what we're seeing in terms of patterns in the industry.

Joseph Nakhla: Actually, post Q1, we had a Tribe expo whereby we invited a lot of our customers in BC to come and have a number of work sessions whereby we brought in some expertise on the legal side, insurance side, and a few other areas to speak about what we're seeing in terms of patterns in the industry. We anticipated 200-plus clients to show up. We ended up with 350. Not to impress, just to impress upon you the importance of what our clients find that we deliver them, which is the knowledge and the expertise that's data-driven, not just feeling-driven about where the industry is going.

Speaker #3: And we anticipated 200-plus clients to show up. We ended up with 350. Not to impress, just to impress upon you the importance of what our clients find that we deliver them, which is the knowledge and the expertise that's data-driven, not just feeling-driven.

Speaker #3: About what the industry is going, and we anticipate a lot of that will actually not only translate into a continuously higher level of retention and winning more business, which we're well on our way of doing, but also being able to monetize further by delivering more important services that these types of communities and buildings will have access to traditionally.

Joseph Nakhla: We anticipate a lot of that will actually not only translate into a continuous high level of retention and winning more business, which we're well on our way of doing, but also being able to monetize further by delivering more important services that these types of communities and buildings don't have access to traditionally. Next slide, please. Again, I'll keep repeating our areas of focus. Profitable operations, we're here. We continue to push on that by improving our gross margin and adding more buildings. Our AI expansion continues to be there. AI is now touching pretty much all the different aspects of our business. Again, we're just scratching the surface on that. We're really heavily focused on organic growth.

Speaker #3: Next slide, please. Again, I'll keep repeating our areas of focus: profitable operations. We're here. We continue to push on that by improving our gross margin and adding more buildings. Our AI expansion continues to be there.

Speaker #3: AI is now touching pretty much all the different aspects of our business, and again, we're just scratching the surface on that. We're really heavily focused on organic growth.

Joseph Nakhla: A bunch of new campaigns are going to the market in Q1, will have been the first quarter ever where we actually started to, because we amalgamated all these divisions, to actually start landing the Tribe brand in the different markets. No matter where you are in the country, and I know you're from all over our beautiful country here on the call today, you'll see more and more of the Tribe brand starting to pop up all the way from Ontario out to the coast here. With that said, I'm happy to take any questions from any of the analysts on the call.

Speaker #3: Much of new campaigns are going to the market in Q1. We'll have been the first quarter ever where we actually started to, because we amalgamated all these divisions to actually start lending the Tribe brand in the different markets.

Speaker #3: So no matter where you are in the country—and I know you're from all over our beautiful country here on the call today—you'll see more and more of the Tribe brand starting to pop up, all the way from Ontario out to the coast here.

Speaker #3: With that said, I'm happy to take any questions from any of the animals on the call.

Speaker #1: Thank you, Jeff, Joseph, and Scott. Our first question comes from Prither Sanga at Haywood Securities.

Hiten Sani: Thank you, Joseph and Scott. Our first question comes from Prithviraj Sanga from Haywood Securities.

Operator: Thank you, Joseph and Scott. Our first question comes from Pardeep Sangha from Haywood Securities.

Speaker #3: Hi, guys. Congrats on the quarter. I'll be asking questions on behalf of Gianluca Tucci of Haywood Securities. With the new CIBC facility in place, how are you guys prioritizing capital right now?

Prithviraj Sanga: Hi guys. Congrats on the quarter. I'll be asking questions on behalf of Gianluca Tucci at Haywood Securities. With the new CIBC facility in place, how are you guys prioritizing capital right now? You mentioned some M&A possibly, but is the near-term focus on debt reduction?

Pardeep Sangha: Hi guys. Congrats on the quarter. I'll be asking questions on behalf of Gianluca Tucci at Haywood Securities. With the new CIBC facility in place, how are you guys prioritizing capital right now? You mentioned some M&A possibly, but is the near-term focus on debt reduction?

Speaker #3: You mentioned some M&A possibly, but is the near-term focus on debt reduction?

Speaker #1: Scott, do you want to take that?

Joseph Nakhla: Scott, do you want to take that?

Speaker #4: Yeah, I was going to say, Joseph, do you mind if I take this one on? Yeah.

Scott Ullrich: Yeah. I was going to say, Joseph, do you mind if I take this one on? Yeah.

Joseph Nakhla: Go ahead.

Speaker #1: Go ahead.

Speaker #4: Well, first off, with regards to M&A, I have two roles at Tribe. One is as a CFO, and the other, I head up the M&A department here.

Scott Ullrich: Well, first off, with regards to M&A, I have two roles at Tribe. One is as the CFO, and the other, I head up the M&A department here. I can tell you that we're always looking at new partnerships with owners with similar like-minded growth strategies. We bring to the table, in addition to our PM skills, we bring the tech that our competition needs to meet current expectations. It can be a win-win for both of us. Although I have very good relationships with our brokerage community, we prefer to deal direct with those owners, considering what the future of property management looks like. We tend to deal directly with those owners, and our discussions can typically take a year or more to come to final partnership.

Speaker #4: So I can tell you that we’re always looking at new partnerships—with owners, with similar like-minded growth strategies. We bring to the table, in addition to our PM skills, the tech that our competition needs to meet current expectations.

Speaker #4: So it can be a win-win for both of us. And although I have very good relationships with our brokerage community, we prefer to deal direct with those owners considering what the future property management looks like.

Speaker #4: We tend to deal directly with those owners, and our discussions can typically take a year or more to come to a final partnership. Because of our relationships with our competitors, we are usually the only company on the other side of the table, and we can both work around each other's timetables.

Scott Ullrich: Because of our relationships with our competitors, we are usually the only company on the other side of the table, and we can both work around each other's timetables. One way that we are saying that being said, we are not looking to conclude any of our negotiations in 2026. We're certainly going to continue our discussions with these future partners. As Joseph mentioned, we have a number of companies that we have acquired that we're amalgamating in 2026, five companies under the Tribe Management Inc. brand. A lot of our focus is going to be that, the short term. With regards to the facility, we have funding available in that facility for future acquisitions.

Speaker #4: So, long-winded way of saying that. That being said, we're not looking to conclude any of our negotiations in 2026, but we're certainly going to continue our discussions with these future partners.

Speaker #4: As Joseph mentioned, we have a number of companies that we have acquired, that we're amalgamating in 2026—five companies under the Tribe Management Inc. brand.

Speaker #4: So a lot of our focus is going to be that—the short term. With regards to the facility, we have funding available in that facility for future acquisitions.

Speaker #4: We have negotiated significantly better terms on the amortization of those loans, allowing us to still look at acquiring and partnering with others, while still having reasonable payments—lower interest, extended amortization.

Scott Ullrich: We have negotiated significantly better terms on the amortization of those loans, allowing us to still look at acquiring and partnering with others while still having reasonable payments, lower interest, extended amortization. Certainly, not a hit on cash flow.

Speaker #4: So, certainly not a hit on cash flow.

Speaker #3: That's great. And in terms of—we've seen a nice uptick in the gross margin profile of the business, and you mentioned further improvement as you guys optimize operations.

Prithviraj Sanga: That's great. We've seen a nice uptick in the gross margin profile of the business, and you mentioned further improvement as you guys optimize operations. Can we consider this range now the new floor? Where do you see this trending with AI kind of adding into the software mix in the next few years?

Pardeep Sangha: That's great. We've seen a nice uptick in the gross margin profile of the business, and you mentioned further improvement as you guys optimize operations. Can we consider this range now the new floor? Where do you see this trending with AI kind of adding into the software mix in the next few years?

Speaker #3: But can we consider this range now the new floor, and what do you see this trending with AI kind of adding into the software mix in the next few years?

Speaker #1: Yeah, absolutely. We think that our floor—we actually think we can drive that much higher if all was said. On our calls, I think a healthy version of our company will knock in the 50s.

Joseph Nakhla: Yeah, absolutely. We think that's our floor. We actually think we can drive that much higher. I've always said on our calls, I think a healthy version of our company will knock in the 50s and north in terms of gross margin. It's pretty evident that AI can help a great deal in delivering that. I just don't want to overuse the concept of AI, and I'm not saying you are, but certainly just holistically, AI is just a great tool, and if it's used in the right way, there's absolutely no doubt that it will play a major role. This idea that AI is going to replace property management, it's not going to happen. If anything, there's more and more regulation coming in to ensure and protect against any just absolute digital or AI-driven decision-making for an incredible amount of assets. We're managing CAD 40-plus billion of assets.

Speaker #1: A north in terms of gross margin. It's pretty evident that AI can help a great deal in delivering that. And I just don't want to overuse the concept of AI, and I'm not saying you are, but certainly, just holistically, AI is just a great tool.

Speaker #1: And if it's used in the right way, there's absolutely no doubt that it will play a major role. But this idea that AI is going to replace property management—it's just not going to happen.

Speaker #1: If anything, it's more and more regulation coming in to ensure and protect against any just absolute digital or AI-driven decision-making for the incredible amount of assets we're managing—$40-plus billion worth of assets.

Speaker #1: The idea that we're just going to close our eyes and let AI make big decisions on behalf of that for people's homes is not going to happen.

Joseph Nakhla: The idea that we're just going to close our eyes on the AI, make big decisions on behalf of that for people's homes, is not going to happen. However, it can go a long way in allowing us to do more with less with ratios. We don't get too deep in breaking out ratios, but it's not going to surprise anybody that our ratios are very healthy, within the context of our property managers can do more, with the tools that we've built, either AI-driven or software-driven. We'll continue to see improvement of that. We also want to do things to be able to drive some predictability for these communities more than what we even offer. Even though I would argue we're the best in the industry, I still think we can really allow these buildings to be ready for a rainy day quicker.

Speaker #1: However, it can go a long way, and it allows us to do more with less—with ratios. We don't get too, too deep in breaking out ratios.

Speaker #1: But it's not going to surprise anybody that our ratios are very healthy. Within the context of our property managers, they can do more with the tools that we've built, either AI-driven or software-driven.

Speaker #1: And we'll continue to see improvement of that. We also want to do things to drive a little more predictability for these communities—more than what we even offer, even though I would argue we're the best in the industry.

Speaker #1: I still think we can really allow these buildings to be ready for a rainy day quicker. We think there are financial products that can come into the conversation very, very quickly.

Joseph Nakhla: We think there's financial products that can come into the conversation very quickly, and we think AI can actually de-risk a lot of that, whether it's lending or insuring. There's going to be a significant amount of injection of our current technology and thesis into bringing in some further revenue streams and improvements to these communities as well.

Speaker #1: And we think AI can actually de-risk a lot of that, whether it's lending or insuring. So there's going to be a significant amount of injection of our current technology.

Speaker #1: And thesis into bringing in some further revenue streams and improvements to these communities as well.

Prithviraj Sanga: Great. Kind of sticking along the same theme, how are you thinking about the productivity for property manager changing as you kind of implement more AI into operations?

Pardeep Sangha: Great. Kind of sticking along the same theme, how are you thinking about the productivity for property manager changing as you kind of implement more AI into operations?

Speaker #3: Great. And kind of sticking along the same theme, how are you thinking about the productivity per property manager changing as you kind of implement more AI into operations?

Speaker #1: Yeah, yeah. I mean, there's no doubt if you look at our company from four years ago, when we were making acquisitions and really just slowly converting from paper into digital—taking people's folders and converting them into cloud-based data that can actually be accessed through their iPhone or iPad.

Joseph Nakhla: There's no doubt, if you look at our company from 4 years ago, whereby when we would make an acquisition, then really just slowly converting from paper into digital, taking people's big folders and converting them into cloud-based data that can actually be accessed through their iPhone or iPad. We started to see improvements in terms of ratio, that ratio is becoming significantly meaningfully bigger now, and that's reflected in our revenue per door, but meaningfully simply because we can actually give them things to worry about, to contemplate. I would say ratio in terms of time of our property managers and property management teams, because it's not just one person, it's that person and it's community coordinators, it's the property accountants. That team is kind of responsible for all different aspects of the health of our communities.

Speaker #1: We started to see improvements in terms of ratio. That ratio is becoming significantly, meaningfully bigger now, and that's reflected even in our revenue per door.

Speaker #1: But meaningfully, simply because we can actually give them things to worry about, to contemplate. So I would say, ratio in terms of time of our property managers and property management teams—because it's not just one person, it's that person and it's community coordinators, it's their property accountant—that team is kind of responsible for all different aspects of the health of our communities.

Speaker #1: Those groups are able to not only worry about bigger projects and bigger items that really mean more for our condo owners and our REITs and/or family offices on the rental side, but also the ratios improvement.

Joseph Nakhla: Those groups are able to not only worry about bigger projects and bigger items that really mean more for our condo owners and our REITs and/or family offices on the rental side, but also their ratios improving. Our ability to take best practice and put them in more communities is also improving. That's all collectively getting better. We don't publicly go out and speak about those ratios, but you should assume that they're significantly better than other organizations, and that continues to improve.

Speaker #1: And our ability to take best practices and put them in more communities is also improving. So that's all collectively getting better. We don't publicly go out and speak about those ratios, but you should assume that they're significantly better than other organizations.

Speaker #1: And that continues to improve.

Speaker #3: Great. And just finally, in terms of the integration of your GTA property management businesses, how is that progressing on the technology side of things?

Prithviraj Sanga: Just finally, in terms of the integration of your GTA property management businesses, how is that progressing on the technology side of things?

Pardeep Sangha: Just finally, in terms of the integration of your GTA property management businesses, how is that progressing on the technology side of things?

Speaker #1: Yeah, so thanks for bringing that up. Q4 was the time where we actually worked significantly on the corporate amalgamation, bringing them on under a similar umbrella.

Joseph Nakhla: Thanks for bringing that up. Q4 was the time where we actually worked significantly on the corporate amalgamation, bringing them under a similar umbrella, changing slightly the geography as it pertains to responsibility from a leadership point of view. Q1 is the one where we're actually deploying our technology into these communities. I can say it's going incredibly well. The new technology, the stack that we're putting out into these communities that they had maybe third-party technology before when those companies were actually licensing other software platforms, not Tribe's. Our Tribe Home and our Tribe Pro continue to be deployed in these communities, going really well with great response. Believe it or not, we still have yet to even start realizing the benefit of our marketplace and our ability to generate further transactions from these communities just simply because we just put our software in there.

Speaker #1: Changing slightly the geography as it pertains to responsibility from a leadership point of view. And Q1 is the one where we're actually deploying our technology into these communities.

Speaker #1: I can say it’s going incredibly well. The new technology from STAG that we’re putting out into these communities—they had maybe a third-party technology before.

Speaker #1: When those companies were actually licensing other software platforms, not Tribes. So our Tribe Home and our Tribe Pro are continuing to be deployed in these communities—going really, really well with great response.

Speaker #1: And, believe it or not, we're still yet to even start realizing the benefit of our marketplace and our ability to generate further transactions from these communities, just simply because we just put our software in there.

Speaker #1: And that you'll see improvement in that through 2026.

Joseph Nakhla: You will see improvement in that through 2026.

Speaker #3: That's great to hear. Okay, thanks. I'll pass the line back over.

Prithviraj Sanga: That's great to hear. Okay, thanks. I'll pass the line back over.

Pardeep Sangha: That's great to hear. Okay, thanks. I'll pass the line back over.

Speaker #1: Thanks, David. Thank you.

Joseph Nakhla: Thanks, Victor.

Prithviraj Sanga: Congrats on the quarter.

Pardeep Sangha: Congrats on the quarter.

Joseph Nakhla: Thank you.

Speaker #4: Thank you.

Hiten Sani: Thank you. Thanks, Victor. We also have a few questions sent in from analysts. Our first set of questions come from Daniel Rosenberg of Paradigm Capital. His first question asks: We have recently seen new software startups in the rental space, including features that allow residents to pay rent with credit cards and earn reward points. Have you seen landlords or residents explore these solutions? What is your overall view of them?

Scott Ullrich: Thank you.

Speaker #1: Thanks, Arthur. We also have a few questions sent in from analysts. Our first set of questions comes from Daniel Rosenberg of Paradigm Capital. His first question asks, "We have recently seen new software startups in the rental space, including features that allow residents to pay rent with credit cards and earn rewards points."

Operator: Thanks, Victor. We also have a few questions sent in from analysts. Our first set of questions come from Daniel Rosenberg of Paradigm Capital. His first question asks: We have recently seen new software startups in the rental space, including features that allow residents to pay rent with credit cards and earn reward points. Have you seen landlords or residents explore these solutions? What is your overall view of them?

Speaker #1: Have you seen landlords or residents explore these solutions? What is your overall view of them?

Speaker #2: Yeah, great question. We've seen them too. Not a single one of them will exist without knocking on our doors to let us see what they've got under the hood.

Joseph Nakhla: Yeah, great question. We've seen them too. Not a single one of them will exist without knocking on our doors to let us see what they've got under the hood. I'm going to break it into two because Daniel cited a specific use case, which is payments and rewards. We've just concluded a pilot that we're very pleased with. You'll see some news on that. We think there's a few pretenders in the space as it pertains to payments. It's my way of saying, quite frankly, actually, if you do the math, we're not delivering, or this case, a product isn't delivering real value to the homeowner simply because they don't do enough volume to justify a lower transaction fee, whereby you get real value as a homeowner from a rewards point of view or a tenant from a rewards point of view.

Speaker #2: I'm going to break it into two, because you cited—Daniel cited—a specific use case, which is payment and rewards. We've just concluded a pilot that we're very, very pleased with.

Speaker #2: So you'll see some news on that. So we think there's a few pretenders in this space as it pertains to payments. And it's my way of saying, quite frankly, actually, if you do the math, we're not delivering—or in this case, a product isn't delivering—real value to the homeowners, simply because they don't do enough volume to justify a lower transaction fee. Whereby, you get real value as a homeowner from a rewards point of view, or a tenant from a rewards point of view.

Speaker #2: So we weren't interested, and we aren't interested, in peddling products, quite frankly. To leverage our size—whereby we know this isn't absolutely the best way for our customers.

Joseph Nakhla: We weren't interested, and we aren't interested in peddling products, quite frankly, to leverage our size, whereby we know this isn't absolutely the best way for our customers. When we do announce something around that, it's a product we stand by. It's a product that adds value to you as a homeowner, whereby transaction fee will be lower than you could do on your own, and the value you receive in terms of rewards will be higher than you can do on your own. If the product meets that threshold, we're in. We think we found that, we pilot it, and we absolutely love it, and you'll see more news on that. Specifically now, that was the specific answer to the point about payments.

Speaker #2: So, when we do announce something around that, it's a product we stand by. It's a product that adds value to you as a homeowner, whereby the transaction fee will be lower than you could do on your own.

Speaker #2: And the value you receive in terms of rewards will be higher than you can do on your own. And if the product meets that threshold, we're in.

Speaker #2: And we think we found that. We piloted it, and we absolutely love it. And you'll see more news on that. Specifically now, that was a specific answer to the point about payments.

Speaker #2: You should—everybody should—know that we have multitudes of different ways you can make your payments on our platform. But we wanted to bring a really fun and rewarding way to get further points, rewards of some sort.

Joseph Nakhla: Everybody should know that we have multitudes of different ways you can make your payments on our platform, but we wanted to bring a really fun and rewarding way to get further points rewards of some sort, and you'll see more on that. As far as pop-up companies that are strapping and sometimes really well-thought-out features or products around rental management, you're absolutely right. A ton of them are out there. I have to say, I'm a fan of a couple. We always look, we always learn, we always see what it is. We've piloted one that we were very pleased with actually specifically around cultivating tenants and actually the lease-up process on the rental side. It's a product that we were very pleased with. Our team, both in a single unit and on the institutional, so like big building for lease-ups, used it. Big fans.

Speaker #2: And you'll see more on that. As far as pop-up companies that are strapping, and sometimes really well-thought-out features or products, around rental management, you're absolutely right.

Speaker #2: A ton of them are out there. I have to say, I'm a fan of a couple. We always look. We always learn. We always see what it is.

Speaker #2: We've piloted it one that we were very, very pleased with around lease actually, specifically around cultivating tenants and actually lease up the lease-up process on the rental side.

Speaker #2: It’s a product that we were very pleased with. Our team, both in the single unit and on the institutional—so, like, big building—for lease-ups used it.

Speaker #2: Big, big fans. We will be doubling down on that product in some shape or form, and that will become more and more part of our tools.

Joseph Nakhla: We will be doubling down on that product in some shape or form, and that will become more and more part of our tools. We're approached, quite frankly, every day with different products and services that we're looking at. None of it is too concerning for us because we're so entrenched. If you go back to my earlier presentation today, when I spoke about those four layers, those four layers are incredibly difficult to replace, especially if you're doing a good job in them. We welcome those products and services. We are piloting a few, and we are also building some of our own that can be complementary to service delivery.

Speaker #2: We're approached, quite frankly, every day with different products and services that we're looking at. None of it is too concerning for us, because we're so entrenched in—if you go back to my earlier presentation today, what I spoke of with this: four layers.

Speaker #2: Those four layers are incredibly difficult to replace, especially if you're doing a good job in them. But we welcome those products and services. We are piloting a few.

Speaker #2: And we are also building some of our own that can be complementary to the service delivery.

Speaker #1: Thank you, Joseph. Daniel's second question asks, "You mentioned a focus on expanding revenue per home. Can we dive a bit deeper into the opportunities and challenges you're seeing?"

Hiten Sani: Thank you, Joseph. Your second question asked: You mentioned a focus on expanding revenue per home. Can we dive a bit deeper into the opportunities and challenges you're seeing?

Operator: Thank you, Joseph. Your second question asked: You mentioned a focus on expanding revenue per home. Can we dive a bit deeper into the opportunities and challenges you're seeing?

Speaker #2: Yeah, for sure. I mean, the numbers don't lie. We've been improving our revenue per door from the moment we came into existence, quite frankly.

Joseph Nakhla: Yeah, for sure. The numbers don't lie. We've been improving our revenue per door from the moment we came to existence, quite frankly. It's not rocket science how we do it. You deliver better service, you're able to charge more for new opportunities that you're coming through. It's not because people just want to throw money at you. They're doing that because they know the building in your hands is significantly more protected and better served than in other hands. They don't mind paying a little bit extra to you, knowing that the overall cost for operation is lower. I always joke, but it's a true statement.

Speaker #2: It's not rocket science how we do it. You deliver better service, you're able to charge more for new opportunities that are coming through. But it's not because people just want to throw money at you.

Speaker #2: They're doing that because they know the building in your hands is significantly more protected and better served than in other hands. So they don't mind paying a little bit extra to you, knowing that the overall cost for operation is lower.

Speaker #2: I mean, I always joke, but it's a true statement. Nobody ever, ever, ever, when they're buying a condo, says, "How much are we paying our property management?" They always ask the question, "How much is my maintenance fee on the condo side?" Right?

Joseph Nakhla: Nobody ever, when they're buying a condo, says, "How much are we paying our property management?" They always ask the question, "How much is my maintenance fee in the condo tax?" If your maintenance fee is within alignment of what it should be, that the building's in really healthy, in good shape, that is where you want to live, and that constitutes success. On the transactional side of the business, I honestly think we are just scratching the surface. Our marketplace, while I think we've done a pretty good job in taking that product to market, I still think has just an incredible amount of opportunity from a growth point of view.

Speaker #2: And if your maintenance fee is within alignment of what it should be, but the building isn't really healthy and in good shape, that is where you want to live and that constitutes success.

Speaker #2: On the transactional side of the business, I honestly think we are just scratching the surface. Our marketplace, while I think we've done a pretty good job in taking that product to market, I still think has just an incredible amount of opportunity from a growth point of view.

Speaker #2: Most people don't understand that a single household in Canada that lives in a condo spends approximately—and this is even a couple of years old—but spends approximately $60,000 annually on things that are around their home, things that are related directly or indirectly to their home.

Joseph Nakhla: Most people don't understand that a single household in Canada that lives in a condo spends approximately, and this is even a couple of years old, but spends approximately CAD 60,000 annually on things that are around their home, things that are related directly or indirectly to their home. Try to just scratch on the surface on that. In terms of wallet size and being able to leverage our size and bring in products that really are meaningful, that make people's lives better in the homes that they're living in, we think that's a tremendous opportunity. It's not a surprise, I've been public about that before. We manage well above CAD 200 million of capital expenditure annually on behalf of our buildings. While if you break that out and see how much of that goes towards plumbing, goes towards handyman services, goes towards cleaning.

Speaker #2: And Tribe is just scratching the surface on that. In terms of wallet size and being able to leverage our size and bring in products that really are meaningful, that make people's lives better in the homes that they live in, we think that's a tremendous opportunity.

Speaker #2: And then it's not a surprise. I've been public about that before. We manage well above $200 million of capital expenditure annually on behalf of our buildings.

Speaker #2: While, if you break that out and see how much of that goes towards plumbing, goes towards handyman services, goes towards cleaning, we still have yet to mobilize and actually create a genuine, full ecosystem to actually allow our condo corporations and Stratas, as we call them, and even allow our big REITs and family offices to even leverage the size that they have to actually deliver—we can deliver them—even a lower OPEX.

Joseph Nakhla: We still yet to mobilize and actually create a genuine ecosystem, full ecosystem, to actually allow our condo corporations and stratas, as we call them, and even allow our big REITs and family offices to even leverage the size that they have to actually deliver. We can deliver them even a lower OpEx. It's pretty low, but we can even drive even a truck through that and actually continue to make further revenue from a transaction point of view. Again, we're just scratching the surface on that. We look and see we're generating CAD 10 per month per door. Unheard of for the industry, and I can make that statement simply because we've looked at a lot of companies that we've either bought or didn't buy, and we know these numbers are incredible.

Speaker #2: I mean, it's pretty low, but we can even drive a truck through that and actually continue to make further revenue from a transaction point of view.

Speaker #2: Again, we're just scratching the surface on that. And we look and see we're generating $10 per month per door—so, unheard of for the industry.

Speaker #2: And I can make that statement simply because we've looked at a lot of companies that we've either bought or didn't buy, and we know these numbers are incredible.

Speaker #2: But we still think we’re just scratching the surface on that. And that’s why I’m pretty confident we are going to get to the 50s in terms of gross margin.

Joseph Nakhla: We still think we're just again scratching the surface on that, and that's why I'm pretty confident we are going to get to the 50s in terms of gross margin. Again, just do remember our gross margin is genuine gross margin. We put all of our costs because we load them up. It's not something that we just use as a vanity number. It's actually how we use and operate internally.

Speaker #2: And again, just do remember, our gross margin is genuine gross margin. We put all of our cost of goods—we load them up. So it's not something that we just like to use as a vanity number.

Speaker #2: It's actually how we use and operate internally.

Speaker #1: Thank you, Joseph. Our next slide with questions comes from Gabriel Longo at Beacon Securities. His first question asks, 'What do you anticipate will be the key drivers of operating leverage this year?'

Hiten Sani: Thank you, Joseph. Our next set of questions come from Gabriel Leung of Beacon Securities. His first question asks: What do you anticipate will be the key drivers of operating leverage this year, and where are you seeing the biggest opportunities for efficiency gains across the business?

Operator: Thank you, Joseph. Our next set of questions come from Gabriel Leung of Beacon Securities. His first question asks: What do you anticipate will be the key drivers of operating leverage this year, and where are you seeing the biggest opportunities for efficiency gains across the business?

Speaker #1: And where are you seeing the biggest opportunities for efficiency and gains across the business?

Speaker #2: Yeah, I don't want to bore everybody, because I've touched on a lot of that stuff. But we do think AI and our accounting service delivery will go a long way, as well as putting programs together to help a lot of our vendors.

Joseph Nakhla: Yeah, I don't want to bore everybody because I've touched on a lot of that stuff. We do think AI and our accounting service delivery will go a long way, us putting programs together to help a lot of our vendors. These are the vendors that render services for our buildings, even helping them get into 21st century using either AI or using some of the digital tools we've built to let them build better, build more accurately, and be more competitive. I think we think that's going to go a long way, and that's going to also help the way we count for all these communities and prepare their financials for them.

Speaker #2: These are the vendors that render services for our buildings, even helping them get into the 21st century using either AI or using some of the digital tools we've built to let them build better, build more accurately, and be more competitive.

Speaker #2: I think we think that's going to go a long way, and that's going to also help the way we count for all these communities.

Speaker #2: And prepare their financials for them. The other big lever is going to be that ratio I spoke about earlier, in terms of allowing our smartest, more expert minds, and our big compliance team to really focus on these things, versus a lot of administrative things.

Joseph Nakhla: The other big lever is going to be that ratio I spoke about earlier in terms of allowing our smartest, more expert minds and our big compliance to really focus on these things versus a lot of administrative things. That's AI and other software platforms that we've built to go a long way and allowing them to continue to do that and improving that ratio. Then just identifying benchmarking opportunities where we can say, Hey, X, Y, Z building. We see that as a blind spot coming in the next five years.

Speaker #2: So, that's AI and other software platforms that we've built to go a long way and allow them to continue to do that—improving that ratio.

Speaker #2: And then just identifying benchmarking opportunities where we can say, 'Hey, X, Y, Z building, we see that as a blind spot coming in the next five years.'

Speaker #2: Take our capital expenditure expertise that we have gained and acquired—that manages a lot of capital expenditure annually right now—and take that across the country and productize it. Meaning, it doesn't matter whether you have a $50,000, $100,000 project, or you have a $5 million project.

Joseph Nakhla: Take our capital expenditure expertise that we have gained and acquired, that manages a lot of capital expenditure annually right now, and take that across the country and productize it. Meaning, it doesn't matter whether you have a CAD 50,000, CAD 100,000 project or you have a CAD 5 million project, we can actually manage that for you and do it properly using our data stack and our expertise. These are operating levers that, like I said, been saying we're just scratching the surface on.

Speaker #2: We can actually manage that for you and do it properly, using our data stack and our expertise. So these are all operating levers that I, like I said, have been saying—we're just scratching the surface on.

Speaker #1: Thank you, Joseph. Gabriel's next question asks, "Aside from M&A, what do you view as the three key revenue growth levers over the near term?"

Hiten Sani: Thank you, Joseph. Gabriel's next question asks, Aside from M&A, what do you view as the three key revenue growth levers over the near term?

Operator: Thank you, Joseph. Gabriel's next question asks, Aside from M&A, what do you view as the three key revenue growth levers over the near term?

Speaker #2: Yeah, I kind of touched a little bit more on that. The organic side of it—I mean, you've got your traditional buildings that are starting to realize that they need a stronger helping hand to navigate through some of their rainy day and/or challenges that they've got.

Joseph Nakhla: Yeah. I kind of touched a little bit more about that. The organic side of it, you've got your traditional buildings that are starting to realize that they need a stronger helping hand to navigate through some of their rainy day and/or challenges that they've got. They may not just be anywhere close to the satisfaction level that they haven't. We're seeing more and that in terms of proposals. I don't think we've ever had as many RFPs out in the market as we do now. That's the organic growth will continue to be a driver. We're also seeing an uptick in interest in those rental products that I spoke about earlier.

Speaker #2: Or they may not be anywhere close to the satisfaction level that they're having. So we're seeing more and more of that in terms of proposals.

Speaker #2: I don't think we've ever had as many RFPs out in the market as we do now. So that's the organic growth that will continue to be a driver.

Speaker #2: We're also seeing an uptick in interest in those rental products that I spoke about earlier. The heavy lifting on that is just—we need a little bit of help from the government to come in and make it worthwhile for people, to incentivize them, essentially, without giving them cash, to take these products to the rental pools in the market.

Joseph Nakhla: The heavy lifting on that is just we need a little bit of help from the government to come in and make it worthwhile for people to incentivize them essentially without giving them cash to take these products to the rental pools in the market. We think that's a tremendous opportunity, and we're staying really good for that. Despite what you're hearing with the doom and gloom, buildings that got started in the last four years have to complete. Q1 actually we had two or three large properties that just got delayed. That's not a reflection on anything other than just some permits and completion and some trades. Those are going to be big drivers for us as well.

Speaker #2: We think that's a tremendous opportunity. We're seeing really good for that. And despite what you're hearing about doom and gloom, I mean, buildings that got started in the last four years have to complete.

Speaker #2: And Q1, actually, we had two or three large properties that just got delayed. And that's not a reflection of anything other than just some permits and completion, and some trades.

Speaker #2: So those are going to be big drivers for us as well.

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

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

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

Speaker #2: Well, thank you, everyone. Great questions—more under-the-hood operational questions this call, so it's great to hear. We're very pleased and thankful for our team and their hard work to continue to be making that big push towards profitability.

Joseph Nakhla: Well, thank you everyone. Great questions. More under-the-hood operational questions this call, so it's great to hear. We're very pleased and thankful for our team and the hard work to continue to be making that big push towards profitability. I'm very bullish on where our company's at, and we are a bit of a unicorn in terms of uniqueness for both in the service delivery side, the geography side, and the accumulation of all the tech back services that we've been able to put under one hood. I'm very pleased with what we've done with it. I am bullish on where AI can play a big role in improving that, but not just for the sizzle of AI.

Speaker #2: I'm very, very bullish on where our company is at. And we are a bit of a unicorn in terms of uniqueness for both the service delivery side, the geography side, and the accumulation of all the tech-backed services that we've been able to put under one hood.

Speaker #2: I'm very, very pleased with what we've done with it. I am bullish on where AI can play a big role in improving that, but not just for the sizzle of AI.

Speaker #2: It's actually, in our case, in everything from the moment we now write a line of code all the way to delivering agents that can answer questions—better questions—for our communities and our customers.

Joseph Nakhla: It's actually, in our case, in everything from the moment we right now write a line of code all the way to delivering agents that can answer questions, better questions for our communities and our customers. We're bullish on our own company. When you look at the last activities in the last 12 to 18 months, the insiders believe in us writing checks in all the last few rounds, we think we're incredibly undervalued. We understand the Street is just slowly coming around to understanding what we're set out to do, I think the numbers will speak for themselves, especially when you look at the size, revenue, and now the profitability profile. Thanks for taking an interest in our organization. Thanks to our team for all the hard work, Scott and his team for delivering another great quarter.

Speaker #2: We still—we're bullish on our own company. We look at it in the last activities, in the last 12 to 18 months. And the insiders believe in us, writing checks in all the last few rounds.

Speaker #2: And we think we're incredibly undervalued. We understand the Street is just slowly coming around to understanding what we're set out to do. And I think the numbers will speak for themselves, especially when you look at the size, revenue, and now the profitability profile.

Speaker #2: Thank you for taking interest in our organization. And thanks to our team for all the hard work, Scott and his team, for delivering another great quarter.

Speaker #2: And we'll see you guys in the market. And we'll see you next quarter. Thanks again.

Joseph Nakhla: We'll see you guys in the market, and we'll see you next quarter. Thanks again.

Operator 2: Goodbye