Good morning, everyone, and welcome to CareRx's second quarter 2026 financial results conference call. Please note, this call is being broadcast live over the internet and the webcast will be available for replay beginning approximately one hour following the completion of the call. Details on how to access the webcast replay are available in today's news release announcing the company's financial results, as well as on the company's website at www.carerx.ca. Today's call is accompanied by a slide presentation. Those listening on their phones can access the slide presentation from the company's website in the Investors section under Events and Presentations. Certain statements made during today's call, including answers that may be given to questions, may include forward-looking information, including information constituting a financial outlook under applicable Canadian securities law. Forward-looking information, including financial outlook information, includes statements regarding future events, conditions, or results, including the company's future plans, strategies, objectives, and expectations. Forward-looking information and financial outlooks are based on information available to management as well as their assumptions and expectations as of the date of this presentation. Forward-looking statements and financial outlook information is given as of the date of this presentation, and the company assumes no obligation to update any forward-looking information as a result of new information or future events, except as required under applicable securities law. Forward-looking information, including statements containing a financial outlook, are subject to risks and uncertainties, some of which may be unknown to management or beyond the control of the company, which could cause actual results to differ materially from those contemplated by the forward-looking statements or financial outlook provided today. Given these risks and uncertainties, investors are cautioned not to place undue reliance on the company's forward-looking information. For additional information on the risk factors that could cause actual results to differ materially from those contemplated by the forward-looking information and the financial outlooks and the factors and assumptions associated with such forward-looking information, please refer to the company's MD&A for the three and six-month period ended June 30th, 2026 and 2025, and other documents filed on the company's profile on www.sedarplus.ca. I would now like to turn the call over to Puneet Khanna, President and CEO of CareRx Corporation. Please go ahead, Mr. Khanna. Thank you, Asha, and good morning, everyone. Welcome to our second quarter 2026 earnings call. With me this morning is our Chief Financial Officer, Suzanne Brand. In the second quarter for the three-month period ending June 30th, 2026, we delivered consistent financial and operating performance. We generated revenue of CAD 93.6 million and adjusted EBITDA of CAD 8 million, representing an adjusted EBITDA margin of 8.6%. We also delivered net income of approximately CAD 400,000 in the quarter. Average beds serviced was 91,719 in Q2. Our financial performance reflects the contribution from new beds onboarded throughout last year, combined with the ongoing benefits of our cost-saving and efficiency initiatives, offset by the changes to the funding for ward beds in Ontario. In the second quarter, we signed a new long-term agreement with a national seniors home operator. We expect this contract will bring approximately 3,000 new beds into our network once onboarded. These retirement communities will begin transitioning to CareRx in the third quarter of 2026. Winning this new home operator customer is an important milestone for CareRx and demonstrates our differentiated value proposition with respect to exceptional service quality, clinical expertise, resident safety, and innovative technologies. We continue to see an encouraging pipeline of new business, and we look forward to updating you on our progress. Also in the quarter, we closed our St. Catharines, Ontario, pharmacy location and relocated the service beds to our Oakville fulfillment center. This was an opportunity to utilize the operational efficiencies of the Oakville hub while continuing to deliver exceptional services to residents and our home partners. Finally, I am pleased to share that the company's board of directors approved a 10% increase in the quarterly dividend rate to CAD 0.022 per common share. This increase reflects our commitment to a disciplined capital allocation strategy that provides the flexibility to fund growth initiatives while delivering strong returns to shareholders. I will now turn the call over to Suzanne, who will discuss our second quarter financial results in more detail. Suzanne. Thank you, Puneet, and good morning, everyone. As Puneet outlined, we delivered consistent results in the second quarter of 2026. Average beds serviced in the second quarter increased to 91,719 from 90,048 in the same period of 2025. Revenue in the second quarter grew to CAD 93.6 million compared to CAD 91.4 million in the second quarter of 2025. The year-over-year increase in revenue was driven primarily by the increase in the number of average beds serviced, partially offset by changes to funding for certain unoccupied ward beds in Ontario, which we outlined last quarter. Second quarter 2026 adjusted EBITDA of CAD 8 million was consistent with the second quarter of 2025. An adjusted EBITDA margin declined slightly to 8.6% from 8.8% a year ago. We reported net income of approximately CAD 400,000 in the second quarter, compared to net income of CAD 600,000 in the second quarter of 2025. The slight decrease in adjusted EBITDA margin and net income was primarily attributable to the changes in funding for the certain unoccupied ward beds in Ontario, partially offset by an increase in bed serviced and cost savings initiatives. Cash from operations in the quarter was CAD 3.7 million, compared to CAD 3.8 million in the second quarter of 2025. Turning to our balance sheet. As at June 30th, 2026, we had cash of CAD 9.6 million compared to CAD 14.8 million at the end of the first quarter of 2026. Decrease in cash is related to the timing of capital expenditures and debt repayment. Net debt was CAD 29.1 million at quarter end, compared to CAD 25 million at the end of the first quarter of 2026. Net debt to adjusted EBITDA was 0.9x at the end of the second quarter, compared to 0.8x at the end of the first quarter of 2026. Net debt to adjusted EBITDA increased due to the decrease in the run rate of adjusted EBITDA and decrease in cash, and partially offset by the repayment of the term loan. Subsequent to the end of the second quarter, we paid dividends in the aggregate amount of CAD 1.3 million. Consistent with our balanced approach to capital allocation, which prioritizes growth investments, balance sheet strengths, and returning capital to shareholders, the board of directors approved an increase in the quarterly dividend rate to CAD 0.022 per common share, payable October 8th, 2026 to holders of record of common shares as of the close of business on September 15th, 2026. Our financial position remains very strong, and we believe we are well-positioned to support continued growth while maintaining conservative leverage profile. With that, I will turn the call back over to Puneet. Thank you, Suzanne. We have continued to make tremendous progress with our operations, financials, and growth. However, most importantly, we're continuing to make a meaningful difference in people's lives. Firstly, I'm very proud to announce that Suzanne Brand has been elected to the board of directors of the Senior Living CaRES Fund and will also serve as board treasurer. Established in 2020 by founding partners Chartwell Retirement Residences, Revera, Extendicare, and Sienna Senior Living, the Senior Living CaRES Fund is a Canadian charity that supports frontline workers in long-term care and retirement communities through emergency financial aid and educational bursaries for career development. Congratulations, Suzanne. Also, our team recently published studies in the Journal of Clinical Microbiology, as well as in Antimicrobial Stewardship & Healthcare Epidemiology. Our work is advancing antimicrobial stewardship research on antibiotic use and resistance in long-term care and retirement homes, building the evidence to improve health outcomes for older adults. Finally, we take great pride in the values and the culture we have fostered at CareRx. We are honored that CareRx's leadership and culture journey is featured in the newly released book, "The Heart Work of Modern Leadership" by David Grossman. This is David's sixth book on leadership and highlights 29 stories from companies that demonstrate the importance of balancing emotional intelligence with strategic thinking. This is what David calls leading with your heart in your head. The team at CareRx was humbled to be the only Canadian company to be invited in this book. Furthermore, the subsequent feature of CareRx in the MIT Sloan Management Review of this book was a wonderful surprise for the entire team. With that, I would now like to open the call to questions. Operator? Thank you. We will now begin the question- and- answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. The first question comes from Max Czmielewski with Stifel. Please go ahead. Morning team. Next quarter. Just a couple of questions. Firstly, now that we've seen a few months of the reduced funding for the ward bed category, do you still expect the top-line impact to be about CAD 2 million for the full year? Has that changed at all? Hi, Max. Thanks for the question. We're still, we still expect it to be a CAD 2 million impact, just because the beds won't come online fast enough. I think what you've seen already past quarter is we didn't have the full hit of it. We've started making some moves to drive those efficiencies. We'll continue to do that to mitigate it more. We do still expect that to be the impact for this year. Great, thank you. Maybe with respect to the 3,000 new beds coming on with the contract won this quarter. Congratulations, by the way. That's great to hear. Thank you. When would you expect, I guess, the totality of those beds to be completed onboarding? Is that probably end of next year? Is that a longer process? What are your timelines on that? We will be onboarding all of those beds in Q3. Great. Just a last one on maybe some of the industry, senior housing rates, progress on your long-term care developments and construction. Are you seeing any of those complete and maybe discussions you're having with partners and what's flowing into the CareRx network? Maybe as a follow-up to that, Chartwell landed a 30% stake in the Seasons Retirement Communities group in May, which is about 3,000 beds. Is that in any way connected to the contract win and maybe some color on just the developments happening in the space? I think there is continued development, particularly long-term care in Ontario with the funding that the Ontario government has announced to build net 30,000 new beds into the system. We will see a small trickle maybe this year than just by the time they announced it and development. We may see some come online late this year, but it will really be at 2027, 2028, where we start seeing more of those come online. With respect to Chartwell Seasons, no impact to us on that one. That was not the win that we had. Noted. Thank you very much. Thanks, Max. The next question comes from Kyle McPhee with ATB Cormark. Please go ahead. Hello, just the first one for me just to fine-tune my understanding of when the new 3,000 beds come online. When do you start and finish? Is it all right away in Q3, or can you provide color on that? We started yesterday, Kyle, and we will be done before the end of this quarter. We will onboard them all. Okay. Throughout the quarter. Okay. Should we expect the rebound to commence for your EBITDA margins as you onboard these beds? I guess what I'm asking, is there anything surprising about the contribution margin dynamic for this 3,000-bed contract? Morning, Kyle. Nothing substantial in terms of the impact here with respect to the onboarding of the 3,000 beds. We will continue to do everything with respect to managing our bottom line. It is a great win for CareRx through Q3. Just to make sure I'm interpreting you right, there's nothing surprising to you about the contribution margin. It should be kind of driving your consolidated company EBITDA- Agreed. margin% higher? Okay. Yeah. Kyle, just as we're onboarding in Q3, you won't see the full impact till Q4. Q4, yeah. Yes. Got it. Just to level set. Yeah. Okay. Then in terms of other moving parts for bed count, past commentary has suggested even more bed wins throughout this year. Is your outlook unchanged on that front versus your past commentary? Is there anything we should know about negative offsets along the way? Anything abnormal about churn or contract losses on the come? Nothing abnormal with respect to churn. We are still focused on our target. This is a great win. We had seen this coming down the pipe for some time. I think I will remind you, we've shared that unfortunately or fortunately, we can't always control when the wins happen, and so sometimes it is a bit lumpy. We still feel bullish about the pipeline, and that was in my prepared remarks as well, that we see a lot of opportunity in front of us at this point. Has the timing changed at all with respect to the remaining opportunities out there, or the timing's unchanged? No. Okay. Yeah, unchanged on it. Okay. The 3,000 beds that you just won, are those long-term care or retirement? They're retirement. That's why we said approximately, because we'll have the sort of exact once we turn it all on. Is the 3,000 retirement beds all the beds in the homes, or is that the beds that will actively be on your platform? That is the active. Got it. Okay. Does this client have, you called them a national client. Do they have more beds across the country that you can potentially win over time, or is this basically their whole portfolio? The whole portfolio. Got it. Okay. Thank you. That's it. Thanks, Kyle. The next question comes from Gary Ho with Desjardins Capital Markets. Please go ahead. Thanks. Good morning, and congrats on the 3,000-bed win. Thank you. Yeah. Just two-part question. Maybe just qualitatively, what were the attributes that drove the contract win? Was it pricing? Was it the level of service? Maybe just talk around the playbook, and is that repeatable? Then maybe just put a finer point in, I guess, Kyle's question earlier. I know your team's been focused on profitable bed growth, and I assume these beds to be accretive to your margins. Should we think about the incremental margins on this contract being 10%-15% higher? Is there any comments that you can provide? Yep. With respect to the why, so this was really an opportunity for this operator to drive consistency, to drive the quality programs that we have. They really saw a material difference in the service levels, programs, people of their current vendor. It was really based on that. With respect to the margin profile, I would say it is in line with our current margins and business. Just based on the size, they did have good pricing power on that too. Okay, great. Then maybe just moving on. I know there's lots of headlines on the generic semaglutide in the news recently, but also some supply challenges in Canada. What are you seeing there? Maybe just can you help us frame the potential gross margin or EBITDA contribution as these are rolled out across your clients? There's, I think, usually a margin pickup when there's a switch from branded to generic. Thanks, Gary. With respect to semaglutide, it is coming into the market. It still is a little bit lumpy with respect to supply. Again, we'll be working with our wholesaler in terms of managing and ensuring we have appropriate inventory so we can switch very seamlessly with our residents. My expectation is that we won't really see any sort of real volume that we can really manage that impact until 2027, just as really the wholesaler can stabilize inventory. It will provide, as does when it goes generic, a lift in terms of margin. We're still managing that with the wholesaler. It is a significant product, but we will see that impact more in 2027. In terms of providing absolute numbers, I really need to get my head around what that will be for 2027 going forward. Okay, great. If I can sneak one more in. You closed the St. Catharines facility this quarter, moved the beds to the Oakville hub. How many more site consolidations are you contemplating over the next 12 months or so? Yeah. It's not something we would share publicly, Gary, look, I think whenever there's an opportunity for us to rationalize, get that efficiency, and put a location into a hub where we know we can deliver better service at a more efficient operating margin, we're going to do that. We'll continue to look at those opportunities. Okay, great. Those are my questions. Appreciate that. Thanks, Gary. The next question comes from David Martin with Bloomberg. Please go ahead. Good morning, Puneet and Suzanne. I believe your target has been to add 6,000-8,000 beds by the end of the year. I'm wondering, where do you expect the majority of them to come from on top of the 3,000 that you just announced? Is this majority from other new customer contracts, or are there more beds coming online due to recent facility acquisitions by your existing large customers? Were those beds already added by the end of Q2? Good morning, David. Yeah. No, our six to eight target that we have set for our team is all organic. Anything else that our partners may acquire or build, we consider as gravy. We are still laser-focused from a sales and an organization perspective on continuing to win organic beds. All of the beds that came in through acquisitions to Southbridge, are they already active? Yeah. That was last year. Yes. That was last year. They're already active. Okay. Yeah. When did the funding stop, and how much has come back already with the homes impacted, converting ward rooms to private and semi-private suites? When the conversion is complete across your client base, how much of the CAD 2 million do you expect to get back? Morning, David. The change in the funding was effective April 1st of 2026. The impact we really felt in totality in Q2. Going forward, the rebuild with respect to those ward beds is, and Puneet can maybe answer this as well, we don't expect that to be completed at all in 2026. They will start, but we won't have a fulsome impact until probably late of 2027. How much of the CAD 2 million do you ultimately expect to get back? We would expect all of that to come back once all those ward beds have been redeveloped. Okay, thanks. That's it for me. Thanks, David. The next question comes from Tania Armstrong with Canaccord Genuity. Please go ahead. Good morning, guys. A couple from me. Congrats on the 3,000 bed win again. I just wanted to circle back on some of the points that. Welcome back, Tania. Thank you. It's nice to be back talking to adults again. First, I wanted to circle back on that 3,000 bed win. I think Kyle kind of outlined most of it there, but just to confirm, this was a brand-new customer, and you won all of the beds in this national customer's base, I should say. There's no opportunity to add incremental beds from this customer in the future, correct? Correct. Okay. Are you able to give us any insight into the provinces that these beds span as well as the timeline on this contract? It's Ontario and Western Canada. It's in the provinces we operate in. Perfect. Is like a typical three-to-five-year contract? It's our typical, yes, which is five. Okay, perfect. Going back to that CAD 2 million impact that you talked about with the loss of funding on the ward beds, we didn't see much of a pricing impact this quarter, which was great. I guess, if you had to quantify how much of that CAD 2 million was seen in Q2, could you put a number on it? Yeah. The impact for Q2 was there, Tania. We had approximately the CAD 667,000, which again, if you straight line that, would have been impacted in Q2. We did have some offset in terms of some mitigation of other revenue that we would have had that would not have been planned for in Q2. That's really where you're seeing a little bit of the offset. That other revenue is not always consistent in terms of quarter-over-quarter. For sure the impact of the ward bed funding is in Q2. Tania, I'll point you to the fact that I think there was a consensus miss because not everyone corrected that 667,000 for ward beds. I think Gary did, and I forget, someone else did, and Kyle did, but I'm not sure everyone else did. Got it. Me, yeah. You actually beat me on pricing because I had corrected for that, and you came in a little bit better. Oh. Maybe, Tania, I can just maybe point you to Q1's revenue was about CAD 92,165. Our revenue actually went down in Q2 to CAD 91.5. Yeah. Okay. Last question from me. With respect to that annual target that you have, the 6,000 to 8,000 bed additions, including the 3,000 bed win, where are you on that target today? I think we're pretty much halfway there on the low end. This was sort of the most material. We had sort of flattish in the first half. Part of that's where we also had the runway. We are putting this all into Q3 to give ourselves also bandwidth to continue to drive further growth for the remainder of this year. Okay. Excellent. I'll leave it there. Thank you, guys. Thanks. Thank you. Once again, if you have a question, please press star then 1. We have a follow-up question from Kyle McPhee with ATB Cormark. Please go ahead. Just looking for some added detail on the St. Catharines consolidation. When does that consolidation start and end, and can you guide us on the full run rate savings impact that you expect to trigger? The St. Catharines site has been integrated into our Oakville location already, so it's fully integrated, and our Oakville operations has taken over complete central fill for that location. At this point, we will get some opportunity as we integrate it completely with the offset of employee costs. It'll be marginal savings, Kyle, but nothing material. Okay. Got it. I just want to clarify something on the ward beds. I understand the CAD 2 million impact and everything, were those empty but non-serviced beds that were still being funded, were they in your bed count? No, they weren't. They were not. Okay. Yeah. No. In the way we report is what we actually service, like active profiles in our pharmacy system. Those weren't inflated numbers. Got it. Okay. Thank you. That's it. Welcome. We have a follow-up question from Tania Armstrong with Canaccord Genuity. Please go ahead. We're going to start charging for follow-up questions. You're just going to get analysts asking 10 questions at a time in their first run. All right. Just one more for me, and housekeeping item. On the gross profit margin, we did see a little bit of a dip. I'm wondering if there's anything that you want to flag in there, or if it's just a factor of product mix. It would be twofold, Tania, just really product mix, to your point, in terms of brand versus generic, but also the impact of the ward bed feed funding is pure price, so it does impact margin as well. Perfect. Thank you, guys. Thanks. This concludes the question and answer session. I would like to turn the conference back over to Mr. Khanna for any closing remarks. Please go ahead. Thank you, everyone, for participating in today's call and for your continued interest in CareRx. We look forward to reporting on our continued progress next quarter. This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.