Good morning, and welcome to the Tiny Ltd. Second Quarter 2026 Results Conference Call. All lines have been placed on mute to prevent any background noise, after the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star one, the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Before we start, we ask you to take a moment to read the disclaimer at the beginning of the slides that accompany this presentation, as it contains important information. We would also like to remind you that all amounts discussed on this call are denominated in Canadian dollars unless otherwise indicated. Please note that statements made during this call may include forward-looking statements and future-oriented financial information regarding Tiny and its business, and disclosure regarding possible expectations, events, conditions, or results that are based on information currently available to management, which indicate management's expectation of Tiny's future growth, results of operations, business performance, and opportunities. Such statements are made as of this date hereof, and Tiny assumes no obligation to update or revise them, except as required by applicable securities laws. Such statements involve significant risks, uncertainties, and assumptions and are not a guarantee of future performance or results. A number of these risks and uncertainties could cause results to differ materially from the results discussed today. Given these risks and uncertainties, one should not place undue reliance on these statements and information. Please refer to the forward-looking statements disclaimer in the slides accompanying this presentation and in the company's press release issued today for additional information. We use non-IFRS financial measures to help investors understand our operating performance. Non-IFRS financial measures may not be comparable to similarly titled measures used by other companies and should be considered along with, but not as an alternative to, measures calculated in accordance with IFRS. I would like to now turn the call over to the executive team from Tiny for today's earnings call. Good morning, everyone. Austin here, thanks for joining us. I'll start with what changed during the quarter and what we are focused on now. I'll then hand it to Mike to go through the detailed financials before we open it up for Q&A. When I moved into the CEO role, I wanted a clear view of where each business stood. We spent significant time going through each operating business, tested the forecast, and reviewed the cost base. That work led to cost reductions, simplifying our overall operating structure, and some difficult decisions, most of which was focused within e-commerce and Creative Market. That is always difficult, it gives us a more honest starting point. That reset was important, but the quarter was not only about that. Revenue was CAD 51.6 million, an adjusted EBITDA of CAD 10.6 million, a 21% margin. ARR reached approximately CAD 70 million, up 32% year-over-year, which now accounts for 34% of our total revenue, largely driven by the Serato acquisition. This gives our business substantially better visibility than we had a year ago. Serato shows the kind of business we want more of. 70% of it is revenue is recurring, and the team continues to build upon its strong core product and partner network. At MetaLab, Q2 was affected by project start timing, which we saw pick up substantially in June and continued into Q3. Letterboxd stayed on pace with its strong growth and ended the quarter with approximately 31 million members. We also know where the revenue pressure is within the organization, which we noted at the top of being e-commerce and Creative Market, a combination of both more competitive markets and a tougher e-commerce end market, both of which we are navigating through. On the balance sheet side, we repaid CAD 2.0 Million of debt in Q2 and another CAD 1.6 million after the end of the quarter. Currency changes affected part of that progress, and leverage ended the quarter at 2.8x. From here, our focus is on continual improvement, turning more of our earnings into cash flow and lowering leverage. Alongside, we'll continue to look at potential monetizations within the portfolio where logical while continuing to add high-quality businesses to Tiny to grow the business over time. Mike, I'll hand it over to you. Okay. Thanks, Austin. I'll get into some of the financial results now in a bit more detail. Starting with revenue, the Q2 2026 total revenue was CAD 51.6 million. This was a 3% increase over Q2 2025 and also represented a 3% increase when measured on a constant currency basis. Looking at the highlights of the composition. Software and Apps grew from CAD 18 million up to CAD 22.4 million, primarily driven by Serato. Digital Services revenue came in at CAD 16 million. This was down from CAD 19.6 million in Q2 2025. It really does reflect a tough comparable Q2 2025 Ladies and gentlemen, we are currently On the Creative Platform, revenue came in at CAD 11.5 million versus CAD 10.3 million a year ago. This benefited from a significant contract win at Dribbble in the quarter. On an LTM basis, revenue was CAD 208.7 million. This was up 9% from the comparable period of CAD 192.4 million. The LTM Digital Services comparison was also impacted by the divestiture of Frosty, AD20, and Z1, along with that outperformance in the first half of 2025 that we've noted. Again, we expect a strong second half based on momentum in Q2 of 2026. Moving on to recurring revenue. This is a key metric we track closely as a proxy for the durability and quality of our revenue base. In Q2 2026, it reached CAD 17.4 million, up 32% from CAD 13.2 million in Q2 of 2025. Serato is the primary driver here, and as Austin noted, a significant amount of that revenue comes from subscriptions. We're also actively investing in a product roadmap and partnerships to sustain that growth year-over-year. On an LTM basis, recurring revenue was CAD 69.8 million versus CAD 42.8 million a year ago. This importantly points to greater annualized recurring revenue for the business overall, which now stands at CAD 69.6 million, growing 32% year-over-year. The ARR trajectory reinforces our strategic focus. We want a larger portion of Tiny's consolidated revenue base predictable and subscription-based where it makes strategic sense, helping to underpin a strong long-term outlook. Moving on to adjusted EBITDA and adjusted EBITDA margin. The adjusted EBITDA for Q2 of 2026 was CAD 10.6 million. This represented a margin of 21%. On an LTM basis, adjusted EBITDA was CAD 38.2 million. This was up from CAD 35.3 million in the Q2 2025 LTM period. Performance, again, largely driven by Serato, Dribbble contract wins, and the continued cost discipline across the portfolio, which we have referenced and will continue to help us drive margin going forward. LTM margin expanded from 18%-19%, a modest but meaningful improvement. Given the significant cost rationalizations that we implemented at the end of Q2 of 2026, we expect this will drive further margin improvement going forward. On a related topic, as we have continued to focus on enhancing our disclosure, we have added segmented EBITDA to our disclosure framework for the quarter as part of our ongoing commitment to provide further operation and financial clarity where possible. Further detail is provided in the MD&A. Moving on to free cash flow and free cash flow per share. Again, as a reminder, in Q1 of 2026, we enhanced some of our disclosure to report free cash flow and free cash flow per share on an attributable basis. Again, we believe this gives investors a clearer and more meaningful picture of the capital generated by our underlying portfolio, net of debt service obligations. LTM free cash flow was CAD 13.4 million or CAD 0.46 per share, compared to CAD 18.6 million or CAD 0.70 per share in the Q2 2025 period. The change in cash flow primarily reflects the timing of contract-related payments, income tax installments, and some working capital movements near the end of the quarter. Moving on to the fund. Recall, this is a separate vehicle from our consolidated results, and we report this on an unaudited basis to give investors further visibility into the portfolio. Q2 fund revenue was in U.S. dollars, $13.2 million. This was a 15% increase over Q2 of 2025. LTM fund revenue was $55.5 million, again, in U.S. Dollars, versus $48.4 million in the previous period. Tiny's NAV for the fund was CAD 46.4 million, which represented a 4% increase from year-end. Distributions to Tiny from the fund were again strong, at CAD 0.5 million in Q2 and have equated to CAD 2.8 million on an LTM basis. Key portfolio highlights in the fund include Letterboxd, surpassing 30.7 million registered members. This number is up 185% since our acquisition in September of 2023. Mateína, our yerba mate brand, now leads the Whole Foods Market energy category with 1.8 times the volume of the second-place contributor. Turning now to the balance sheet. As of June 30th, 2026, senior debt outstanding was CAD 105.9 million, and our total cash and cash equivalents were CAD 31.6 million, slightly up from CAD 29.3 million at year-end. While our net debt to adjusted EBITDA ratio does stand just slightly above our target range of 2 - 2.5, we are making progress. Austin noted some debt repayments both in the quarter and following the quarter, it continues to show that we remain committed to debt repayment. This is a priority within capital allocation, and i mportantly, as we think about the balance sheet, we have no pending maturities. We've maintained some capital structure flexibility through the extension of the convertible debenture offer. Overall, our objective here is to ensure we have the proper capital structure in place to continue on the longer-term journey of capital allocation. Now turning to our roadmap. We have four strategic priorities that are on track: profitable growth, capital structure optimization, momentum within Tiny Fund, and disciplined capital allocation. These are all important as we think about our day-to-day operations. In summary, Q2 was a quarter of continued execution against these strategic priorities, alongside a disciplined look at the portfolio and the value through an ongoing asset review. We're well-positioned to head into Q3, we look forward to updating you again on our progress next quarter. With that, we should turn it over to questions. We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. As a reminder, if you would like to ask a question, please press star one to raise your hand. Your first question comes from the line of Richard Baldry with Roth Capital. Richard, your line is open. Please go ahead. Great, t hanks. Can you maybe talk a little bit more in depth about the review of the e-commerce operation? I'm sort of curious, there was a pretty large bad debt hit of about CAD 4.1 million in the quarter. Was that related to that? Can you talk about the scale of the costs that you think you'll operational sort of savings you think you've identified exiting Q2? Thanks. Thanks, Richard. Good morning. It's Mike. Austin will touch on some of the discussion points around e-commerce, and then I will finish off with a couple of points around clarification of a couple of points on the financials. I guess separating those two questions, one was around the bad debt, the other is just the broader write down on the intangibles side. We took a pretty clear view of the forecast that were previously put in place, I think the first six months of this year have definitely introduced more uncertainty in what that looks like. I think what we do know is Shopify remains the core platform for net new merchants. We play a really big role within that third-party ecosystem. We're quite confident that will be a place where merchants go to over the long term, and we are navigating through the changes within that end market at this moment. We think we have taken out a very substantial amount of cost this quarter, which we'll start to see more of the flow-through effects over the coming quarters. We do feel quite confident about that business over time, that we are navigating through a bit of choppy waters on it. Yeah. Mike, do you want to touch on the bad debt? It was in a different area of the business. Yeah, exactly. It was in two different areas, Richard. There was a minority investment that was on the balance sheet from a number of years ago that was written down based on performance. There was some review of some age receivables in another area of the business. Those two items were not necessarily related to ecommerce. Certainly a lot of the things you'd see in the statements this quarter around severance costs, as an example, that was more related to ecommerce as part of this structural reset that we undertook in that area. If you switch over to Serato and sort of the growth areas. Where do you think the sustainability or extensibility of those growth drivers are near term? Maybe broadly speaking, can you talk about the efficiencies you're still seeing from bringing some AI type optimization tools into service internally? Thanks. Sure. On Serato, we're continuing to see a shift of younger gen leaning towards, I'd say, digital products like DJing than they might have historically to something like a piano. That has provided a really nice base of continual expansion of the customer base, as well as we have two core subscription tiers within that business, one of which has substantially more features, and we're continuing to see more and more customers move to that side. We're seeing a really nice base of net new adds, as well as upgrades into our higher-tiered plan. We feel quite positive about the outlook of that business. Sorry, what was the second part of the question there? The question about using AI tools internally to improve Right efficiencies, operations. We have seen a meaningful improvement on that front. I'd say those, some part of which flow through on cost reductions that we're able to see this quarter. I'd say more specifically, though, that brings us key data and information across the entire organization in a much more centralized way that helps our decision-making at parent. I think we have a long way to still go on what's possible with the tools that are evolving almost every day at this point, but we are seeing a very positive impact. Mike, anything else you want to add on that? No, I think it's a focal point for us, right? It's a focal point, Richard, as you mentioned, in the services business, in Digital Services. It's a focal point for the team at Serato in terms of creating operational efficiencies in their design engineering work. We're also employing a number of different tools across the organization to enhance our real-time reporting. There's been a number of ways that we've been able to utilize the AI as an opportunity, right? Utilize AI tools as an opportunity versus it necessarily being a threat, where we're adapting also in certain areas of the business as well. We're certainly finding ways where we can be a more efficient organization overall. It might be a difficult question to answer, but just broadly speaking, how much do you think of Austin's time is spent on really portfolio optimization, so I think about M&A type work, versus the operations of the underlying companies, and is that shifting? The backdrop is, are you more focused on working the portfolio, or the operating entities, and how is that going to evolve? Thanks. I think it's partly an evolving topic. I think from the earlier days of Tiny, what worked really well is being a decentralized organization, and part of the changes we made this quarter was going back to being that where head office can really be focused on net new acquisitions. That said, there was a number of areas where it made sense for us to spend time this quarter on making adjustments, which we highlighted, but I think we want to be in a place where head office is really focused on acquisitions, having the right leaders run the operating companies, and really trusting them to do so. That's the high-level viewpoint of kind of where we're going. Great. Thanks. As a reminder, if you would like to ask a question, please press star one to raise your hand. Your next question comes from the line of Rob Young with Canaccord Genuity. Rob, your line is open. Please go ahead. Hi, just a question. A lot of the expenses in the quarter, but it looks like you repaid debt in the quarter and then noted that you made some voluntary repayment after the quarter. I'm just curious about your intents in the near term around deployment of capital. Is the pay-down of the debt going to take on a bigger priority now, or is that just a one-time thing? Hey, Rob. Good morning, i t's Mike. Thanks for the question. I think we can consistently say, over the last six quarters that we've been focused on this. We're trying to manage this against the earnings base, this as a matter of capital deployment. As you know, we have an NCIB open, w e've been buying back some shares because there's been probably some opportunities there where the shares are undervalued in the market. It's really a matter of sort of how do we balance this against other opportunities to deploy capital, right? Certainly, there will be instances where we can be voluntarily repaying smaller amounts of debt, and I think those should be highlighted because we're taking the steps to ensure that we're managing those balances, right? Again, it's going to be evaluated against all priorities. Again, if we were able to find an acquisition, we want to be also positioned to do that, right? Managing the balance sheet to ensure that we're positioned for the next opportunity is also really important. It's certainly been a primary objective in the last six quarters. I don't think that's going to change because we want to make sure that we're managing the balance sheet properly and that we're properly positioned for the next larger opportunity for a deal when it comes our way. Just a small question. You noted the indirect interest in SpaceX through xAI, through MetaLab Ventures Fund I. I'm just curious about how that's accounted for. Is that at book value or is that current value, or is there an opportunity to monetize that for the benefit of Tiny's balance sheet? I'll pass the line. Thanks. Thanks. It's evolving, Rob. A new situation, right? The genesis of the MetaLab Venture Fund has traditionally been a partnership fund where they've done work with growth clients, made some investments themselves out of that fund. There's obviously some success now coming from that. Is there an opportunity for some of those dollars to flow back to Tiny? Absolutely. Again, the decisions will be made at the appropriate time to whether or not to monetize those shares and then ultimately, what to do with those use of proceeds. Yes, there will be an opportunity for some of those dollars to flow back to Tiny. We are clear that we are only a 14.1% partner in that fund, right? There are other partners in that fund who will also benefit from this. It's great to see that there's, again, good return on capital that's been allocated, right? We're showing some there in the MetaLab Venture Fund. We're obviously showing that with opportunities in the Tiny Fund. This is part of the greater situation of ensuring that we're allocating capital into unique opportunities, and creating return for our shareholders. There will be some return, but again, we want to make sure that we're also understanding that it's somewhat modest as it relates to flow back to the Tiny shareholders because we are only a 14% GP holder in that fund. Or excuse me, LP holder in that fund. Okay. Understood. Thanks for taking the question. We have reached the end of the Q&A session. This concludes today's call. Thank you for attending, y ou may now disconnect.