Q2 2026 NowVertical Group Inc Earnings Call

August 18, 2026

Speaker #2: 2026 results conference call. My name is Stephen Eptehue with Bristol Investor Relations, and I'd like to thank everyone on the call for joining us this morning.

Stefan Eftychiou: 2026 results conference call. My name is Stefan Eftychiou with Bristol Investor Relations, and I'd like to thank everyone on the call for joining us 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, financial statements, and management discussion and analysis that are available on the investor relations section of the company's website at www.nowvertical.com and on the SEDAR+ website, www.sedar.com. All figures discussed on today's call are in USD and will be on an IFRS basis unless otherwise noted, and we'll refer to the specific non-IFRS measures, including, but not limited to, adjusted EBITDA, adjusted EBITDA percentage, and net debt to trailing 12 months adjusted EBITDA.

Speaker #2: Before we get started, I want to remind everyone to read the company disclaimer and forward-looking statements that you can find on pages 2 and 3 of today's presentation, as well as in the presentation materials related to today's earnings, press release, financial statements, and management discussion and analysis. These materials are available on the Investor Relations section of the company's website at www.nowvertical.com and on the SEDAR website, www.sedar.com.

Speaker #2: All figures discussed on today's call are in newest dollars and will be on an IFRS basis unless otherwise noted. We will refer to specific non-IFRS measures, including but not limited to adjusted EBITDA, adjusted EBITDA percentage, and net debt to trailing 12 months adjusted EBITDA.

Speaker #2: Please refer to the cautionary note in the presentation and to the non-IFRS and other financial measures section of the MD&A for more detail. Today's presentation will be led by Andre Garber, the company's Interim Chief Executive Officer, who is also joined by Philip Jones, the company's Chief Financial Officer.

Stefan Eftychiou: Please refer to the cautionary note in the presentation and to the non-IFRS and other financial measure section of the MD&A for more detail. Today's presentation will be led by Andre Garber, the company's Interim Chief Executive Officer, who is also joined by Philip Jones, the company's Chief Financial 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 analysts over the Zoom audio and all other questions from our listeners through the webinar portal Q&A chat box. We'll remind analysts to use the raise your hand feature within the portal to ask a question. Once again, thank you for joining us today, and I'll now turn the call over to Andre to begin the presentation.

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

Speaker #2: I will remind analysts to use the "Raise Your Hand" feature within the portal to ask a question. Once again, thank you for joining us today.

Speaker #2: And I'll now turn the call over to Andre to begin the presentation.

Speaker #3: Well, thank you very much, Stephen, and good morning, everyone. Thank you for joining NowVertical's second quarter 2026 call. I'm Andre Garber, Interim Chief Executive Officer, and I'm joined by Phil Jones, our Chief Financial Officer.

Andre Garber: Well, thank you very much, Stefan, and good morning, everyone, and thank you for joining NowVertical's Q2 2026 call. I'm Andre Garber, Interim Chief Executive Officer, and I'm joined by Phil Jones, our Chief Financial Officer. I want to start with the management update. During the quarter, the board made a change of Chief Executive Officer, and as a co-founder of this business, I stepped in as Interim CEO, and the board is conducting a search for a permanent CEO. I want to be clear about what interim means here. I'm not a caretaker, and I'm operating this business every day with full accountability for the results we're reporting today and going forward. An important thing I can tell you about NowVertical today is that our global team is here.

Speaker #3: I want to start with the management update. During the quarter, the Board made a change of Chief Executive Officer. As a co-founder of this business, I stepped in as Interim CEO, and the Board has conducted a search for a permanent CEO.

Speaker #3: But I want to be clear about what 'interim' means here. I'm not a caretaker, and I'm operating this business every day with full accountability for the results we're reporting today and going forward.

Speaker #3: An important thing I can tell you about NowVertical today is that our global team is here. Our key leaders are all with the business, including co-founders who sold their companies into NowVertical and rolled their equity in.

Andre Garber: Our key leaders are all with the business, including co-founders who sold their companies into NowVertical and rolled their equity in. They are integral to how we operate, and we are integrating the business more deeply together, rowing in the same direction. The results you hear on this call belong to that team. On the finance side of the house, as we announced, Christine Nelson has stepped down as CFO and has decided to resign from the company for family reasons. Christine has been with NowVertical for four fantastic years, and the last two of them her being the Chief Financial Officer. She remains with us as an advisor through the end of August. Christine built our financial reporting engine and the team behind it and was instrumental in strengthening our balance sheet.

Speaker #3: They are integral to how we operate, and we are integrating the business more deeply together, rowing in the same direction. The results you hear on this call belong to that team.

Speaker #3: And on the finance side of the house, as we announced, Christine Nelson has stepped down as CFO and has decided to resign from the company for family reasons.

Speaker #3: Christine has been with NowVertical for four fantastic years, and the last two of them as Chief Financial Officer. She remains with us as an advisor through the end of August.

Speaker #3: Christine built our financial reporting engine and the team behind it, and was instrumental in strengthening our balance sheet. Christine, we are deeply grateful, and we wish you every success and well-deserved time with your family.

Andre Garber: Christine, we are deeply grateful, and we wish you every success and well-deserved time with your family. Taking over as CFO is Phil Jones. Phil is a CPA with more than 20 years of CFO experience across public and private companies, and he has been inside NowVertical since June as an advisor to management. This is anticipated, and a transition that has been smooth. You'll hear from Phil shortly on the financials. But for those newer to the story, NowVertical makes enterprise AI work. We start with the picks and shovels of enterprise AI, the foundation work that has to happen before any AI tool actually works inside a business. From there, we work alongside our clients in their day-to-day operations, helping them turn that data into better decisions and measurable business value.

Speaker #3: And taking over as CFO is Phil Jones. Phil is a CPA with more than 20 years of CFO experience across public and private companies.

Speaker #3: And he has been inside NowVertical since June as an advisor to management. So this is anticipated and a transition that has been smooth. You'll hear from Phil shortly on the financials.

Speaker #3: But for those newer to the story, NowVertical makes enterprise AI work. We start with the 'picks and shovels' of enterprise AI—the foundational work that must happen before any AI tool actually works inside a business.

Speaker #3: From there, we work alongside our clients in their day-to-day operations, helping them turn that data into better decisions and measurable business value. Now, everyone on this call has seen this problem somewhere in their own day-to-day organization.

Andre Garber: Now, everyone on this call has seen this problem somewhere in their own day-to-day organization. The multiple copies of the same document sitting in SharePoint. The customer data in one system and the finance data in another, and the two don't talk. What's going into the data lake? How is it secured? How is it governed? Every business's data is some form of mess, and it gets messier as companies get more complex. You cannot deploy AI on top of that. That is exactly the problem we solve. Our specialty is setting the correct data foundations across all the systems and all the data flows in your business. It's the groundwork for the measurable outcomes. The way we work, we start small. We prove fast, we prove our value fast, and we grow with the client.

Speaker #3: There are multiple copies of the same document sitting in SharePoint, the customer data in one system, and the finance data in another. And the two don't talk.

Speaker #3: What's going into the data lake? How is it secured? How is it governed? Every business's data is some form of mess, and it gets messier as companies get more complex.

Speaker #3: And you cannot deploy AI on top of that. That is exactly the problem we solve. Our specialty is setting the correct data foundations across all the systems and all the data flows in your business.

Speaker #3: It's the groundwork for the measurable outcomes. And the way we work, we start small. We prove fast, we prove our value fast, and we grow with the client.

Speaker #3: Many of the logos on the slide started as small engagements and are now multimillion-dollar lifetime relationships. We have more than 30 of these accounts with lifetime values above $5 million.

Andre Garber: Many of the logos on this slide started as small engagements and are now multimillion-dollar lifetime relationships. We have more than 30 of these accounts with lifetime values above $5 million. In terms of the shape of our business, 89% of our revenue is core data and analytics solutions and services. Our people, our methodologies, our delivery is in this bucket. 11% is reselling third-party technology. Almost 90% of our revenue is what we build and deliver ourselves, and that share has been rising. That's where the margin and differentiation live, of course. Our gross margin this quarter was 50%, up from 47% in the same time last year. We deliver with senior domain expertise on a global cost base, and we use AI in our own delivery. So we are getting more efficient at the same time as we grow. This is durable revenue.

Speaker #3: And in terms of the shape of our business, 89% of our revenue is core data and analytics solutions and services. Our people, our methodologies, our deliveries are in this bucket.

Speaker #3: Eleven percent is reselling third-party technology, so almost 90% of our revenue is what we build and deliver ourselves. And that share has been rising. That's where the margin and differentiation live, of course.

Speaker #3: Our gross margin this quarter was 50%, up from 47% in the same period last year. We deliver with senior domain expertise on a global cost base, and we use AI in our own delivery.

Andre Garber: We deliver with senior domain expertise on a global cost base, and we use AI in our own delivery. So we are getting more efficient at the same time as we grow. This is durable revenue. 85% of this quarter's revenue came from our top 30 accounts, and 92% came from clients who have been with us for more than a year. It is not really a business of small, short contracts. It is a business of enduring client relationships that expand over time. With this, let me pass it over to Phil to give an update.

Speaker #3: So we are getting more efficient at the same time as we grow. And this is durable revenue. Eighty-five percent of this quarter's revenue came from our top 30 accounts, and 92% came from clients who have been with us for more than a year.

Andre Garber: 85% of this quarter's revenue came from our top 30 accounts, and 92% came from clients who have been with us for more than a year. It is not really a business of small, short contracts. It is a business of enduring client relationships that expand over time. With this, let me pass it over to Phil to give an update.

Speaker #3: So, it's not really a business of small, short contracts. It's a business of enduring client relationships that expand over time. And with this, let me pass it over to Phil to give an update.

Speaker #1: Thank you, Andre. It has been great joining NowVertical as the Chief Financial Officer. Earlier this year, I announced my retirement on LinkedIn, but with the caveat of keeping my options open if I was presented with a great opportunity to work with a great team.

Philip Jones: Thank you, Andre. It has been great joining NowVertical as the Chief Financial Officer. Earlier this year, I had announced my retirement on LinkedIn, but with the caveat of keeping my options open if I was presented with a great opportunity to work with a great team. Having decades of experience as a senior finance leader in both public and private companies at various stages of growth and evolution, I see the potential in what the team at NowVertical is building, and I wanted to bring my skills and experience to the table to be part of the NowVertical story and to help unlock the values in this business. I am looking forward to connecting with our investors and partners over the coming months. For now, let me walk you through the key financial highlights of the second quarter of 2026.

Speaker #1: Having decades of experience as a senior finance leader in both public and private companies at various stages of growth and evolution, I see the potential in what the team at bring my skills and experience to the table to be part of the NowVertical story and to help unlock the values in this business.

Speaker #1: I'm looking forward to connecting with our investors and partners over the coming months, but for now, let me walk you through the key financial highlights of the second quarter of 2026.

Speaker #1: Revenue for the second quarter of 2026 was $9.7 million, an increase of $1.5 million, or 18%, from the $8.2 million recorded in Q2 of last year.

Philip Jones: Revenue for the second quarter of 2026 was $9.7 million, an increase of $1.5 million or 18% from the $8.2 million recorded in Q2 of last year. For the six months ended 30 June 2026, revenue was $19.4 million, up 4% year over year from last year. The H1 of 2025 had included an exceptionally strong first quarter, so achieving year over year growth for the H1 of 2026 over 2025 is meaningful to the company and highlights the momentum we are achieving. Looking at the revenue breakdown for the second quarter of 2026 and comparing it to the first quarter of 2026, we note the key drivers of revenue growth. Core data analytics solutions and services grew $600,000 or 7% from the prior quarter and 13% from the same quarter in the prior year.

Speaker #1: For the six months ended June 30, 2026, revenue was $19.4 million, up 4% year over year from last year. The first half of 2025 had included an exceptionally strong first quarter, so achieving year-over-year growth for the first half of 2026 over 2025 is meaningful to the company and highlights the momentum we're achieving.

Speaker #1: Looking at the revenue breakdown for the second quarter of 2026 and comparing it to the first quarter of 2026, we note the key drivers of revenue growth.

Speaker #1: Core data analytics solutions and services grew $600,000, or 7%, from the prior quarter and 13% from the same quarter in the prior year. Data analytics solutions is also the highest gross margin product or service provided by NowVertical.

Philip Jones: Data analytics solutions is also the highest gross margin product or service provided by NowVertical. We also achieved growth in revenue derived from our top 30 accounts as the company continues to nurture long-term, sticky relationships with its clients, leading to and driving repeatable revenue. With respect to reselling revenue, we experienced a quarter over quarter decline of $600,000, but a doubling of the revenue achieved in the same quarter in 2025. Reselling revenue tends to be quite lumpy as the revenue recognition rules of IFRS require all revenue and costs associated with a reselling contract to be recognized for the entire term of the contract upon signing. Reselling revenue is also a lower margin product, so the change in revenue mix in the current quarter versus prior periods is also a positive contributor of the overall margin increase realized in Q2 2026.

Speaker #1: We also achieved growth in revenue derived from our top 30 accounts, as the company continues to nurture long-term, sticky relationships with its clients, leading to and driving repeatable revenue.

Speaker #1: With respect to reselling revenue, we experienced a quarter-over-quarter decline of $600,000, but a doubling of the revenue achieved in the same quarter in 2025.

Speaker #1: Reselling revenue tends to be quite lumpy, as the revenue recognition rules of IFRS require all revenue and costs associated with a reselling contract to be recognized for the entire term of the contract upon signing.

Speaker #1: Reselling revenue is also a lower-margin product, so the change in revenue mix in the current quarter versus prior periods is also a positive contributor to the overall margin increase realized in Q2 2026.

Speaker #1: One of the revenue source channels for both data analytics solutions and reselling revenue is the Google Cloud Platform, which drove $2.5 million in revenue, up about 10% sequentially and up 77% from the prior year.

Philip Jones: One of the revenue source channels for both data analytics solutions and reselling revenue is the Google Cloud platform, which drove $2.5 million in revenue, up about 10% sequentially and up 77% from the prior year. Just to clarify, Google Cloud-related revenue is included within our two revenue streams and is not an additional revenue, but merely a source channel of driving the revenue of the company. Gross margin was 50% in Q2 2026, up from 47% in the same period last year, as a result of both change in the product mix, but also reflecting delivery efficiency and pricing discipline throughout the company. Adjusted EBITDA for the quarter was $1.5 million, up 41% year over year and achieving an overall EBITDA margin of 15%.

Speaker #1: Just to clarify, Google Cloud-related revenue is included within our two revenue streams and is not an additional revenue, but merely a source channel for driving the revenue of the company.

Speaker #1: Gross margin was 50% in Q2 2026, up from 47% in the same period last year, as a result of both changes in the product mix and improved delivery efficiency and pricing discipline throughout the company.

Speaker #1: Adjusted EBITDA for the quarter was $1.5 million, up 41% year-over-year and achieving an overall EBITDA margin of 15%. For the first half of 2026, or the six months ended June 30, 2026, adjusted EBITDA was $3.2 million, which is down 10% from the same period in 2025.

Philip Jones: For the H1 of 2026 or the six months ended 30 June 2026, adjusted EBITDA was $3.2 million, which is down 10% from the same period in 2025. The change reflects future growth-related investments we made in the H1 of 2026, which we will discuss later in this presentation. A major achievement of the company in the first six months of the year is positive net income in consecutive quarters, which has not happened since 2024. Net income in the H1 of 2026 was $0.2 million compared to a loss of $1.3 million in the same period of 2025, an increase of $1.5 million in net income. Cash flow from operations for the H1 of 2026 generated $1 million in positive cash flow, compared with $4 million of cash consumption in the same period last year, a $5 million improvement year over year.

Speaker #1: The change reflects future growth-related investments we made in the first half of 2026, which we will discuss later in this presentation. A major achievement of the company in the first six months of the year is positive net income in consecutive quarters, which has not happened since 2024.

Speaker #1: Net income in the first half of 2026 was $0.2 million, compared to a loss of $1.3 million in the same period of 2025, an increase of $1.5 million in net income.

Speaker #1: Cash flow from operations for the first half of 2026 generated $1 million in positive cash flow, compared with $4 million of cash consumption in the same period last year, a $5 million improvement year-over-year.

Speaker #1: Overall, the balance sheet has strengthened as the company generates cash from operations while also servicing and paying down its long-term debt. The company has positive working capital of $2.3 million while reducing leverage, with net debt at only 1.8 times trailing 12-month adjusted EBITDA.

Philip Jones: Overall, the balance sheet has strengthened as the company generates cash from operations while also servicing and paying down its long-term debt. The company has positive working capital of $2.3 million while reducing leverage with net debt at only 1.8x trailing 12-month adjusted EBITDA. NowVertical has not raised operating or growth equity since 2023, with any shares being issued since that time for the purpose of settling existing obligations. Our total debt facility has declined to $16.9 million from $17.6 million as the company continues to service its debt obligations, both principal and interest, from its operating cash flows. I'll now turn the time back over to Andre.

Speaker #1: NowVertical has not raised operating or growth equity since 2023, with any shares being issued since that time for the purpose of settling existing obligations. Our total debt facility has declined to $16.9 million from $17.6 million, as the company continues to service its debt obligations—both principal and interest—from its operating cash flows.

Speaker #1: I'll now turn the time back over to Andre.

Speaker #2: Thanks so much, Phil. Great to have you on board. Just a brief word on our market: Gartner forecasts worldwide AI services spending to grow roughly 30% this year, to nearly $600 billion.

Andre Garber: Thanks so much, Phil. Great to have you on board. Just a brief word on our market. Gartner forecasts worldwide AI services spending to grow roughly 30% this year to nearly $600 billion. For us, demand is not our constraint, and neither is delivery. We can deliver more than what we currently sell. What's been missing is the growth infrastructure to reach more clients and more markets, and that's exactly what we're building. You'll also likely hear noise about AI disrupting service businesses. However, the messier data gets and the faster AI moves, the more foundational our work becomes. NowVertical gets busier because of the shift to deploy AI in an enterprise context, not the other way around. Our growth is coming from three engines. First, going deeper in existing accounts, which you've heard before and you'll see in the numbers today.

Speaker #2: So for us, demand is not our issue—it's delivery. We can deliver more than what we currently sell. But what's been missing is the growth infrastructure to reach more clients and more markets, and that's exactly what we're building.

Speaker #2: You'll also likely hear noise about AI disrupting service businesses. However, the messier data gets and the faster AI moves, the more foundational our work becomes.

Speaker #2: So NowVertical gets busier because of the shift to deploy AI in an enterprise context, not the other way around. And our growth is coming from three engines.

Speaker #2: First, going deeper in existing accounts, which you've heard before and you'll see in the numbers today, and second is new client acquisition. There are early signs showing, and I'll come back to that.

Andre Garber: Second is new client acquisition. There are early signs showing, I will come back to that. Third is Google Cloud. We are a premier partner and a two-time data and analytics partner of the year in Latin America. I do want to be direct about this opportunity because we are a global firm. However, we have not formally established our Google go-to-market in every region where we operate. Bringing those markets online with Google is a concrete near-term growth lever, and we are working on that now. Just before I go into questions, there are two things about how we report to you. First, we did rework our MD&A this quarter, how we describe the business, the client analytics behind it. Starting now, we are basically reporting a defined set of client KPIs every quarter.

Speaker #2: And third is Google Cloud. We are a premier partner and a two-time Data and Analytics Partner of the Year in Latin America, and I do want to be direct about this opportunity.

Speaker #2: Because we're a global firm, however, we haven't formally established our Google go-to-market in every region where we operate. So bringing those markets online with Google is a concrete near-term growth lever, and we're working on that now.

Speaker #2: Just before I go into questions, there are two things about how we report to you. First, we did rework our MD&A this quarter—how we describe the business, the client analytics behind it, and, starting now, we are basically reporting a defined set of client KPIs every quarter.

Speaker #2: So that's core services revenue, top 30 account revenue, Google Cloud-related revenue, and revenue by client tenure and size. So I do encourage everybody to read it.

Andre Garber: That is core services revenue, top 30 account revenue, Google Cloud-related revenue, and revenue by client tenure and size. I do encourage everybody to read it. What those KPIs would tell you is that we are an enterprise services business. The significant majority of our revenue comes from clients where we are billing them over USD 100K a year, and most of our revenue comes from clients who have been with us for more than two years. It is a durable and repeatable revenue base, and there is real wallet share opportunity inside of it. On the pipeline, Phil mentioned the growth investments we made in H1 2026 that went into commercial capacity, right? People, propositions, pipeline. The place you will see the return on that spend is the under one-year revenue line on the tenure table. New clients converting will show up there.

Speaker #2: But what those KPIs would tell you is that we're an enterprise services business. The significant majority of our revenue comes from clients where we are billing them over $100K a year, and most of our revenue comes from clients who have been with us for more than two years.

Speaker #2: Years. So it's a durable and repeatable revenue base, and there's real wallet share opportunity inside of it. And then, on the pipeline, Phil mentioned the growth investments we made in the first half of 2026 that went into commercial capacity, right?

Speaker #2: People, propositions, pipeline. The place you'll see the return on that spend is the under one-year revenue line on the 10-year table. New clients converting will show up there.

Speaker #2: So for this quarter, that line is $0.7 million, and it is a key number we're most focused on moving. We're doing that through the commercial capacity that the investment is funding and the Google markets we're aiming to bring online.

Andre Garber: For this quarter, that line is USD 0.7 million, and it is a key number we are most focused on moving. We are doing that through the commercial capacity that the investment is funding and the Google markets we are aiming to bring online. We are actively working on that. If our funnel is converting, you will see that too. To close, it was an 18% revenue growth quarter at a 50% gross margin, EBITDA 41%, positive net income, positive operating cash flow, and a cleaner balance sheet. It is delivered by a team that is fully engaged. There is work ahead. There is a ton of work. We have told you exactly which numbers to watch. With that, just want to say thanks very much, and we will take your questions.

Speaker #2: And we're actively working on that. And if our funnel's converting, you'll see that too. Just to close, it was an 18% revenue growth quarter at a 50% gross margin, EBITDA 41%, positive net income, positive operating cash flow, and a cleaner balance sheet.

Speaker #2: And it's delivered by a team that's fully engaged. There's work ahead. There's a ton of work. And we've told you exactly which numbers to watch.

Speaker #2: So with that, I just want to say thanks very much, and we'll take your questions.

Stefan Eftychiou: Okay. Thank you, Andre. With that, we will go into the Q&A session with analysts. Once again, if there are any analysts on the call who would like to ask a question, please use the raise your hand feature and we will pause for a moment to allow analysts to get into the queue using that feature. Okay, looks like we have a question here from Rob Goff with Ventum Financial Corp. Rob, looks like your line is live. Please go ahead.

Speaker #1: Okay, thank you, Andre. With that, we will go into the Q&A session with analysts once again. If there are any analysts on the call who would like to ask a question, please use the 'raise your hand' feature.

Speaker #1: And we'll pause for a moment to allow analysts to get into the queue using that feature. Okay, it looks like we have a question here from Rob Goff.

Speaker #1: We've been to financial. Rob, it looks like your line is live. Please go ahead.

Speaker #3: Okay, thank you very much. First, for Andre, if I could—as a co-founder and now interim CEO—how are you prioritizing your focus? What are your key items?

Rob Goff: Okay. Thank you very much. First would be for Andre Garber, if I could. As a co-founder and now Interim Chief Executive Officer, how are you prioritizing your focus? What are your key items? Looking forward, how do you see organic growth looking into 2027? Should we look for baseline organic growth consistent with 2026 or perhaps stronger?

Speaker #3: And then, looking forward, how do you see organic growth shaping up into 2027? Should we anticipate a baseline organic growth rate consistent with 2026, or perhaps something stronger?

Speaker #2: Perfect. Sure. Thanks so much, Rob. Maybe I'll pass the second part of your question over to Phil. As for the first part, yeah, I mean, I'm not here to keep the seat warm, so my mandate is to accelerate execution of the strategy, right?

Andre Garber: Perfect. Sure. Thanks so much, Rob, and maybe I will pass the second part of your question off to Phil.

Andre Garber: Perfect. Sure. Thanks so much, Rob, and maybe I will pass the second part of your question off to Phil. As the first part, I am not here to keep the seat warm, so my mandate is to accelerate execution of a strategy, right? Pull on the immediate levers ahead of us. That is the priority. There is work to be done. There is still work to be done to improve efficiencies within the business. The real key is to pull on the immediate levers that we had just talked about, right? Finish rebuilding the commercial engine, keep the financial discipline non-negotiable, and aim to launch our Google Cloud propositions and offerings into new markets that we are not currently doing that in right now. Phil?

Andre Garber: As the first part, I am not here to keep the seat warm, so my mandate is to accelerate execution of a strategy, right? Pull on the immediate levers ahead of us. That is the priority. There is work to be done. There is still work to be done to improve efficiencies within the business. The real key is to pull on the immediate levers that we had just talked about, right? Finish rebuilding the commercial engine, keep the financial discipline non-negotiable, and aim to launch our Google Cloud propositions and offerings into new markets that we are not currently doing that in right now. Phil?

Speaker #2: And pull on the immediate levers ahead of us. That is the priority. There's work to be done. There's still work to be done to improve efficiencies within the business.

Speaker #2: But the real key is to pull on the immediate levers that we just talked about, right? Finish rebuilding the commercial engine, keep the financial discipline non-negotiable, and aim to launch our Google Cloud propositions and offerings into the new markets that we’re not currently doing that in right now.

Speaker #2: Phil?

Speaker #3: Yeah. In terms of organic growth, we are certainly making that our priority in the short term. And over the next year, any M&A activity will be, we would describe, as opportunistic.

Philip Jones: Yeah, in terms of the organic growth, we are certainly making that our priority in the short term and over the next year. Any M&A activity we would describe as opportunistic, with our growth focus really being driven from organic growth, both adding new customers, but then further expansion into our existing customers as we have seen with the growth of our top 30 accounts year-over-year, and we expect that to continue.

Speaker #3: With our growth focus really being driven by organic growth, both adding new customers and further expansion into our existing customers, as we've seen with the growth of our top 30 accounts year over year.

Speaker #3: And we expect that to continue, and perhaps go further. Phil, could you speak to your past experiences? Did they involve M&A? Did they involve the efficiency drive?

Rob Goff: Okay. And perhaps further with Phil, could you speak to your past experiences? Did they involve M&A? Did they involve efficiency drives? Do they involve organizations with double-digit growth? Just to give us a bit more in-depth of perspective there.

Speaker #3: Did they involve organizations with double-digit growth? Just to give us a bit more depth of perspective there.

Speaker #4: Yeah, I've been involved in a number of businesses, both public and private, from startup to turnaround situations. I've been very involved in M&A, both on the acquisition side and on the divestiture side, and I've had a few successful exits in my career as well.

Philip Jones: Yeah. I've been involved in a number of businesses, both public and private, from startup to turnaround situations. I've been very involved in M&A, both on the acquisition side and on the divestiture side, and I've had a few successful exits in my career as well. In terms of growth and geography, I've been involved in companies that have expanded organically globally, and set up multiple offices around the world with staff and things in different jurisdictions. So dealing with different cultures, different reporting requirements, currency matters, et cetera. It's all things that I've got a lot of experience in and very comfortable doing. I've been in businesses that have seen magnitude growth of 5 and 6 times revenue within a single year.

Speaker #4: In terms of growth and geography, I've been involved in companies that have expanded organically, globally, and set up multiple offices around the world with staff and things in different jurisdictions.

Speaker #4: So, dealing with different cultures, different reporting requirements, currency matters, etc.—these are all things that I've got a lot of experience in and am very comfortable doing.

Philip Jones: It's all things that I've got a lot of experience in and very comfortable doing. I've been in businesses that have seen magnitude growth of 5 and 6 times revenue within a single year. Not that I'm predicting that for NowVertical, but I'm very comfortable with preparing a team and an infrastructure that is poised and ready to take on the large levels of growth.

Speaker #4: And yeah, I've been in businesses that have seen magnitude growth of 5% and 6x revenue within a single year. So, not that I'm predicting that for NowVertical, but I'm very comfortable with preparing a team and an infrastructure that is poised and ready to take on large levels of growth.

Philip Jones: Not that I'm predicting that for NowVertical, but I'm very comfortable with preparing a team and an infrastructure that is poised and ready to take on the large levels of growth.

Speaker #3: Okay, thank you. And perhaps could you comment on how you see the revenue mix evolving, and the sustainability of gross margins remaining relatively consistent with the current quarter?

Rob Goff: Okay. Thank you. And perhaps could you comment on how you see the revenue mix evolving and the sustainability of gross margins relatively consistent with the current quarter?

Speaker #4: Yeah. Our emphasis has continued as well—we want to grow all revenue in terms of how the mix grows. We believe that the services portion of our business, the data analytics and solutions, will continue to be the driver of growth versus our reselling.

Philip Jones: Yeah. Our emphasis is continued. Well, we want to grow all revenue. In terms of how the mix grows, we believe that the services portion of our business, the data analytics and solutions, will continue to be the driver of growth versus our reselling. Given that that is a higher margin product versus reselling of software and software services, we do anticipate that the margins will continue to, at the very least, remain stable, if not improve over time.

Speaker #4: And given that that is a higher-margin product versus reselling of software and software services, we do anticipate that the margins will continue to at the very least remain stable, if not improve, over time.

Speaker #3: Very good. And just a callout, please extend best wishes to Christine, and it's nice to see her helping in the transition. All the best.

Rob Goff: Very good. Just a call-out, please extend best wishes to Christine, and it is nice to see her helping in the transition. All the best.

Speaker #4: Yes, thank you. And Christine has certainly built a fantastic finance team and been a key part of this business. That certainly made my decision to join the organization much easier, knowing I was coming into a role that had been led from a position of strength, with a fantastic team assembled to make my life and the company's efforts much easier.

Philip Jones: Yes, thank you. Christine has certainly built a fantastic finance team and been a key part of this business. That certainly made my decision to join the organization much easier, knowing I was coming into a role that had been led from a position of strength with a fantastic team assembled to make my life and the company's efforts much easier.

Rob Goff: Very good. All the best.

Speaker #4: Thank you.

Philip Jones: Thank you.

Speaker #2: So, thanks very much. Question? I'll just read the questions out. Wondering how we are dealing with Argentina hyperinflation? Are we hedging the currency?

Andre Garber: Thanks very much. Question, I will just read the questions out. Wondering how we are dealing with Argentina hyperinflation. Are we hedging the currency?

Speaker #4: We have not been hedging the currency specifically in Argentina. One of the key points is that a lot of the costs, etc., the company itself becomes a natural hedge.

Philip Jones: We have not been hedging the currency, specifically in Argentina. One of the key is a lot of the costs, et cetera, the company itself becomes a natural hedge. Its suppliers are in region as well as the revenues, and we will continue to monitor that very closely. The currency has somewhat stabled itself this year compared to prior years, with the impacts in our Q2 financials much less than they had been in prior quarters and prior years.

Speaker #4: Its suppliers are in-region, as well as the revenues. And we'll continue to monitor that very closely. The currency has somewhat stabilized itself this year compared to prior years, with the impacts in our Q2 financials much less than they had been in prior quarters and prior years.

Speaker #2: Okay, great. Thank you. Let's see—what is preventing NowVertical from improving its growth rate right now? And, if there's a related question, when can we expect to see results on the commercial engine?

Andre Garber: Okay, great. Thank you. Let us see. What is preventing NowVertical to improve its growth rate? I guess there is a related question about when can we expect to see results on the commercial engine? I would just simply answer that by just saying, look, we are not really reporting on pipeline metrics. It is partly competitive. What we have put in now is this revenue by client tenure and showing that under one-year revenue line so that people can see conversion on a trend basis. That is the number we are really most focused on moving. That is going to be the key for us. We also got a question about which markets will push into Google Cloud, and again, I would rather announce that once it is done, sharing the intention here.

Speaker #2: So I would just simply answer that by saying, look, we're not really reporting on pipeline metrics. That's partly competitive. But what we have put in now is this revenue by client tenure and showing that revenue—that under one year revenue line.

Speaker #2: So that people can see conversion on a trend basis. So that's the number we're really most focused on moving—that's going to be the key for us.

Speaker #2: We also got a question about which markets will push into Google Cloud. And again, I'd rather announce that once it's done, rather than sharing the intention here.

Speaker #2: There was a question we had about the, I believe it said M&A, but I think it was MD&A mentioned about winding up some of the countries.

Andre Garber: There was a question we had about the, I believe it said M&A, but I think it was MD&A mentioned about winding up some of the countries. Why are we winding up there? I think we have lots of operating entities in lots of countries. We also have some entities that are non-operational, even in the countries that we operate. Some of that stuff is more administrative than otherwise at this point, to answer your question. We have in the past done some country restructurings, but I am not sure that is exactly what you were getting at with the question.

Speaker #2: Why are we winding up there? I think we have lots of operating entities and lots of countries. We also have some entities that are non-operational, even in the countries that we operate.

Speaker #2: So, some of that stuff is more administrative than otherwise at this point, to answer your question. We have, in the past, done some country restructurings.

Speaker #2: But I'm not sure that's exactly what you were getting at with the question.

Speaker #4: Yeah, Andre, if I could add to that as well. I think the key is, while there may be a wind-up of a physical location, it wouldn't mean the ending of customer relationships in any countries.

Philip Jones: Yeah, Andre, if I could add to that as well. I think the key is, while there may be a windup of a physical location, it would not mean the ending of customer relationships in any countries. Any profitable customer, we will just simply serve it from one of the other locations.

Speaker #4: Any profitable customer, we will just simply serve from one of the other locations.

Speaker #2: Yeah, perfect. Question about the CEO: Why not have a permanent CEO? Why interim? I think the board has—I think just even looking at the results of this quarter, it’s showing that there shouldn’t be a rush to search.

Andre Garber: Yeah. Perfect. Question about CEO. Why not have a permanent CEO? Why interim? I think the board has, just even looking at the results of this quarter, it is showing that there should not be a rush to search. That search is underway. But giving the board the time, and the business the time to find the right leader is going to be critical, and something we are all looking forward to. There was a question that you mentioned in a previous call that cash taxes in LatAm occur primarily in Q1 and Q2. Is that still accurate?

Speaker #2: The board is that search is underway. But giving the board the time, and the business the time, to find the right leader is going to be critical, and something we're all looking forward to.

Speaker #2: There was a question that you mentioned in a previous call, that cash taxes and LatAm occur primarily in Q1 and Q2. Is that still accurate?

Speaker #4: Yes, that is still accurate. And we are compliant with all of our tax filings, tax payments, and tax obligations.

Philip Jones: Yes, that is still accurate, and we are compliant with all of our tax filings, tax payments, tax obligations.

Speaker #2: Question for Mr. Jones: To benefit now, if you have to bring anything from your past experience, what would it be and why?

Andre Garber: A question for Mr. Jones. To benefit NowVertical, if you have to bring anything from your past experience, what would it be and why?

Speaker #4: One of the key things that has been successful for me in the past is the ability to take the finance function from a compliance reporting focus to a forward-looking focus.

Philip Jones: One of the key things that have been successful for me in the past is the ability to take the financing function from a compliance reporting focus to a forward-looking focus. That is one of the key things that I plan on bringing to the table, is really helping with the forecasting and the business planning moving forward. At the same time, I have a lot of experience in multinational environments. Most of my companies have had branch offices or locations or teams scattered around the world and a global customer base.

Speaker #4: And that's one of the key things that I plan on bringing to the table—really helping with the forecasting and the business planning moving forward.

Speaker #4: At the same time, I have a lot of experience in multinational environments, as most of my companies have had branch offices, locations, or teams scattered around the world, and a global customer base.

Speaker #4: And so that sometimes comes with some challenges in trying to integrate operations and improve process flows across borders, which is another key initiative that I've been working on with the business unit leaders and market unit leaders in the company, in terms of increased integration of the overhead finance and various other functions of the business.

Philip Jones: That comes sometimes with some challenges in trying to integrate operations and improve process flows across borders, which is another key initiative that I have been working on with the business unit leaders and market unit leaders in the company in terms of increased integration of the overhead finance and various other functions of the business.

Speaker #2: I'm not sure if we directly answered that. Thanks, Phil. In terms of the commercial engine investments in Q2 compared to Q1, maybe we can talk a little bit about that, and also maybe a little bit on H2, because we do expect to continue to invest in that commercial engine, if you will.

Andre Garber: I am not sure if we directly answered that. Thanks, Phil. In terms of the commercial engine investments in Q2 compared to Q1. We can maybe talk a little bit about that, and also maybe a little bit on H2, because we do expect to continue to invest in that commercial engine, if you will, and I call it the growth infrastructure.

Speaker #2: And they call it the growth infrastructure.

Speaker #4: Yeah, I think in Q1, we'd announced we'd spent about $300,000. And that's been consistent again in Q2. That's a function of both marketing tools, travel, improving awareness and outreach, as well as people and the tools to create capacity to allow us to deliver more and fund our growth with existing levels of staff.

Philip Jones: Yeah, I think in Q1, we announced we spent about USD 300,000, and that has been consistent again in Q2. That is a function of both marketing tools, travel, improving awareness and outreach, as well as people and the tools to create capacity to allow us to deliver more and fund our growth with existing levels of staff.

Speaker #2: Thanks. Question: We just got—if anybody has any more questions, please put them in. What is the likelihood of significant growth in the United States over the coming quarters?

Andre Garber: Thanks. A question we just got, and if anybody has any more questions, please put them in. What is the likelihood of significant growth in the United States over the coming quarters? I think the United States is a pretty incredible, mature market, so it is definitely an ambition of ours to look at that US market again, and ways in which we are going to go about thinking about the US market expansion and looking forward to expanding on that in future calls. We do not have any more questions here. Just wait 30 seconds for anybody else, and if not, we can look forward to having everybody back for our Q3 call. Okay. Well, thanks again, everybody. Thank you, Bristol team, for helping facilitate this. Thank you, Phil, and thanks everybody for attending. We really look forward to engaging with you again in the near future.

Speaker #2: So I think, I mean, the United States is a pretty incredible, mature market. And so it's definitely an ambition of ours to look at that US market again.

Speaker #2: And ways in which we're going to go about thinking about the US market expansion, and looking forward to expanding on that in future calls.

Speaker #2: So we don't have any more questions here. We'll just wait 30 seconds for anybody else, and if not, we can look forward to having everybody back for our Q3 call.

Speaker #2: Okay, well, thanks again, everybody. Thank you, Bristol team, for helping facilitate this. Thank you, Phil, and thanks, everybody, for attending. We really look forward to engaging with you again in the near future.

Speaker #1: Great. Thanks, Andre. Thanks, Phil. And thank you to our audience for joining today. We look forward to updating you on future calls. And yeah, this concludes today's second quarter 2026 conference call.

Stefan Eftychiou: Great. Thanks, Andre. Thanks, Phil. Thank you to our audience for joining today. We look forward to updating you on future calls. This concludes today's second quarter 2026 conference call.

Operator 2: Goodbye

Operator: Goodbye.