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Ladies and gentlemen, thank you for standing by. This is Roy, and I will be your conference operator today. At this time, I would like to welcome everyone to the Caliber Q2 2026 earnings 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, please press star followed by the number one on your telephone keypad. If you would like to withdraw a question, please press star one again. I would now like to turn the conference over to Ilya Grozovsky, Vice President of Investor Relations, Corporation Development. Please go ahead.

Good afternoon, everyone. Welcome to Caliber's Q2 2026 financial results conference call. With me today are Chris Loeffler, Chief Executive Officer and Co-founder, and Michael Rosales, Acting Chief Financial Officer of Caliber. Please note that we have a quarterly earnings presentation which will serve as a supplement to today's prepared remarks. You can access the presentation in the investor relations section of our website at www.caliberco.com. After management's commentary, we will open the call for questions. As a reminder, the information discussed today may include forward-looking statements that involve risks and uncertainties. Words like believe, expect, and anticipate refer to our best estimates as of this call, and there can be no assurances that these will actually take place. Our actual future results could differ significantly from these statements.

Further information on the company's risk factors is contained in the company's quarterly and annual reports and filed with the Securities and Exchange Commission. It is now my pleasure to turn the call over to Chris. Please go ahead.

Thank you, Ilya. Good afternoon, everyone. Today, my comments will address an update to our strategic expansion into digital assets and blockchain, a discussion of Caliber's financial position, and our private equity real estate platform and related activity. Before walking through these topics, I'll briefly frame the quarter. Our Q2 results were in line with our 2026 plan. While platform revenue declined approximately 10% year-over-year, driven by the timing of revenue-generating activities between the periods, our platform Adjusted EBITDA turned positive, an improvement of approximately $0.4 million, and we executed across both sides of the revenue plan we laid out at year-end, generating new capital formation and project-level financings. We are reaffirming our full year 2026 guidance today, and Michael will walk you through the financial details later in the call. I'll start my update with our digital asset strategy.

I am happy to announce that this morning, Caliber completed its first fund tokenization. Investors in PURE Pickleball & Padel can now elect to hold their investment as a digital token. This is the first tokenization for us, but we are already working on our second, our Steamboat Springs Hyatt Studios offering. This is a moment in time in Caliber's 17-year history worth pausing to enjoy. It is the start of a tokenization program we expect to expand across additional offerings over time, beginning with an initial slate of approximately $100 million in managed assets. Let me put our tokenization work in a market context. According to rwa.xyz, the registry that tracks tokenized real-world assets, the total market stood at approximately $25.4 billion at the end of 2025. As of this week, it stands at approximately $38.4 billion.

That is roughly 51% growth, approximately $13 billion of new tokenized assets in the first seven and a half months of 2026. Within that $38.4 billion, only about $200 million is associated with real estate, roughly 1/2 of 1% of the market. When we read those two numbers together, we see a market that is growing fast and a real estate category inside of it that has barely been touched. Real estate is one of the largest asset classes in the world, and almost none of it has been tokenized. We believe that that gap is the opportunity, and with our first fund tokenization complete and an initial slate of approximately $100 million of managed assets behind it, we intend to position Caliber as an early leader in the tokenization of private real estate funds. Why tokenize?

Applying tokenization to our existing real estate funds platform enhances capital formation, simplifies investment valuation, adds liquidity features for investors in our funds, and reduces operating costs for Caliber through a more efficient investment management platform. We brought together top-tier partners for this tokenization with Chainlink's automated compliance engine automating investor verification, KYC and AML review, sanction screening, and transfer controls, integrated with leading identity, custody, and fund infrastructure providers. Turning to the treasury itself, at the end of the Q2 we held 229,204 LINK tokens with a fair value of $1.7 million. During the quarter, we sold approximately 278,357 LINK tokens for proceeds of $2.5 million. We redeployed that capital into our real estate platform, generating a corresponding increase in cash and other assets.

We continue to allocate capital where it generates the highest return for shareholders. Our real estate platform is where we are seeing the most immediate revenue growth opportunity in 2026, and the treasury supported that execution. As the real estate platform releases cash, we plan to maintain our LINK treasury and strategically grow our position according to the company's capital allocation strategy. Working side by side with the team at Chainlink has only strengthened our conviction on the value they bring to tokenization and the use case for LINK to power the infrastructure layer of decentralized finance. Turning to financial visibility, our focus in 2026 is on executing financings and converting our existing pipeline into realized revenue. We have updated our platform performance supplement through the end of the Q2 which provides investors with a clear view of our operating business.

This supplement excludes consolidated assets and focuses on the portion of our platform that directly drives shareholder value. At the end of the Q2 our estimated performance allocations totaled $96 million, down from $99 million in the prior quarter and up from $85 million in the prior year quarter. Turning to fundraising, managed capital at the end of the Q2 was $495 million, compared to $489 million in the previous quarter and $498 million in the year ago quarter. The increase relative to the previous quarter was primarily driven by increased investments in our residential and commercial properties, including new capital raised into PURE Pickleball & Padel and our Canyon Residential project, and contributions from our diversified funds.

Our underlying capital formation activity in the Q2 remained consistent with our plan, and we expect managed capital to grow over the balance of 2026 as new fund offerings come onto the market. Our wholesale channel's advisor production is continuing to broaden, and the selling group base continued to grow. During the Q2 we added four new producing advisors across three different firms, including one firm that began producing for the first time this quarter, a signal that production is moving beyond our founding relationships. In parallel, we continued to roadshow the Hyatt Studios platform to the wholesale channel and build a real pipeline of advisor and firm-level interest. Third-party due diligence is underway now, standard practice before any strategy reaches advisors' desks, and we expect it to clear in time for a full launch into the channel in mid Q3.

From there, the work is converting the pipeline into funded capital. I am also pleased to share that our direct fundraising from high net worth individuals improved in the Q2 and drove overall fundraising results. This is a healthy signal as Caliber saw improved lead generation from its in-house marketing engine and conversion to form valuable new relationships. The direct investment client base of over 2,000 individuals continues to expand as interest in real estate investment appears to be improving in 2026. Now we will turn to updates on assets we manage and the performance of our managed real estate funds. We remain focused on investing in hospitality, multifamily, and multi-tenant industrial real estate, which we believe offers Caliber's investor clients the best opportunities in the current market environment.

In the interest of your time each quarter, I touch on what I believe are the most important changes that occurred during and after the quarter's end, but I will not attempt to comprehensively discuss every movement in every fund. Our Hyatt Studios developments continue to progress as planned. In July, we broke ground on the Hyatt Studios Steamboat Springs project and purchased a 2.5 acres site for our Hyatt Studios TSMC project in Phoenix, Arizona. We now control a hotel development site minutes away from TSMC, which is a $265 billion investment in U.S.-based semiconductor manufacturing. We have now launched three of the four investor offerings supporting our Hyatt Studios development platform and expect to launch the fourth as it completes drafting and legal review.

All of these assets are designed to transition into long-term ownership within Caliber Hospitality Trust, Inc., or CHT, which we expect would exercise an option agreement to acquire the assets once built and stabilized, offering Hyatt Studios investors a defined exit either through cash or shares in CHT, and CHT investors a proprietary pipeline of new income-producing hotels. Turning to CHT itself, the fund is currently focused on acquiring high-quality hotel properties at an attractive entry point. Taking advantage of a meaningful pricing dislocation in the hotel space, where we are seeing opportunities to buy good quality cash flowing assets at a discount to both their inherent construction cost and to longer term market values. We are pursuing these acquisitions through direct cash transactions and tax deferred contributions using CHT's UPREIT structure, which gives existing hotel owners a tax efficient path to roll their assets into a diversified portfolio.

This quarter, CHT grew its active acquisition pipeline to eight hotel assets in various states of underwriting, with one of those eight moving to a fully executed letter of intent for purchase. We have also made a significant change in CHT's hotel management approach. In 2025, Caliber took action to change management on one hotel asset, the Hampton Inn & Suites in Scottsdale, Arizona, which has since delivered improvements in gross operating profit against a relatively soft hotel revenue environment. In 2026, an additional five hotels exited our legacy manager, and our team, along with our new management partner, stepped into place an owner-centric model, as we did with the Hampton Inn. We expect similar profitability improvements across the portfolio as the playbook is implemented, and we look forward to reporting our results. Finally, we are actively working on refinancing several existing CHT assets.

These financings are expected to fund property-level improvements, decrease overall financing costs, improve property-level liquidity, and contribute to Caliber's financing-related revenue in the third and fourth quarters of 2026. Our PURE Pickleball & Padel project in Scottsdale, Arizona will deliver a world-class pickleball and padel facility featuring 48 courts, a 1,200-seat pro arena, a full-service clubhouse, sports performance and recovery center sponsored and managed by HonorHealth. Food and beverage services will be managed by Wolfgang Puck Catering, which includes an on-site restaurant, grab-and-go market, special event space, teaching kitchen, VIP space, arena concessions, and a rooftop patio. PURE's building permits were approved, and it continues to advance towards shovel-ready status, with the focus now on finalizing construction financing and rounding out the overall capital structure, which is actively in progress. We are also excited that PURE is our first tokenized offering.

With pickleball and padel being the fastest growing sports in the U.S. and the globe, respectively, the tokenization of the fund now offers accredited investors worldwide the opportunity to invest in the growth of both sports in the U.S. via this offering. Turning to Canyon Village, our large-scale conversion of office to multifamily in North Phoenix, serving the TSMC and Apple Fab development corridor. The HUD construction loan application was approved during the quarter, and we are filing our firm commitment application shortly to move to a final close. Demolition is now completed, and drawings for the building and garage are close to complete as well. At Encore, our land development in northern Colorado, we continue to advance site development planning and commercial leasing activity. We have an active LOI with 7-Eleven, an LOI on the apartment site.

United Properties remains in escrow on the industrial site, and we are seeing activity from two national big box users. On project financing, we are making continued progress with our selected financing partner and expect to close on the financing in the near term. Project execution remains tied to financing and infrastructure milestones, which we expect to advance over the coming quarters. Caliber continues to advance its differentiated 1031 exchange offering, which provides investors seeking to place $1 million or more in 1031 exchange capital in a direct path to invest alongside Caliber in the same real estate acquisitions we are pursuing through our funds. The program uses a tenant in common or TIC structure that partners one investor with Caliber, and in some cases, with a small number of other Caliber-aligned investors.

Caliber serves as the administrator of the asset and related TIC interests, and the investors who enter through a TIC interest can ultimately complete a tax-deferred 721 exchange into our Core Plus Income Fund, converting their interest into a diversified, professionally managed fund position. The program is distinctive in the 1031 marketplace for several reasons. First, investors come in at Caliber's cost basis on the underlying acquisition rather than at a marked up basis typical of larger DST sponsors. Second, the program's cost structure compares favorably to other 1031 offerings in the market. Third, the eventual 721 exchange path into our Core Plus Income Fund provides a long-term liquidity solution that very few 1031 sponsors can offer. We are now pursuing our second asset in this program, the Tonto Oaks apartment offering.

Tonto is a 46-unit value add multifamily property in Payson, Arizona, where we plan to complete a light renovation while maintaining occupancy at 90% or greater throughout the renovation cycle. The strategy is to improve the asset's value and continue generating cash flow during the hold period. Value add multifamily is a category Caliber has historically executed against well, and we are seeing opportunities to acquire multifamily assets at more attractive prices today than we have seen in years. In summary, Caliber's Q2 was executed according to our plan, and we expect the remainder of 2026 to be driven by the closing of project-level financings across our existing portfolio, continued capital formation through wholesale and direct fundraising, and opportunities for new lines of revenue and cost savings through the tokenization of our real estate assets. Today, we are reaffirming our 2026 guidance.

We continue to believe that our 2026 revenues should be in a range of $18 million-$22 million, producing positive Adjusted EBITDA. With that, I will turn it over to Michael to review our financial results.

Thank you, Chris. Good afternoon, everyone. I'll start with an update on our efforts to address our corporate note maturities to improve our corporate liquidity position. As of the end of the Q2 we had 148 individual unsecured notes with an aggregate principal balance of approximately $26 million, of which $21 million is scheduled to mature within the next 12 months. Each note generally has a 12-month term with an option to extend. We continue to execute the strategies described in our filings to address these maturities, refinancing 12-month notes into our 36-month note program, converting notes into Class A Common Stock or Series AAA Convertible Preferred Stock under our conversion program, and raising Series AA Preferred Stock under our Regulation A+ offering. Through August 13th, we have refinanced $6.4 million of notes into the 36-month program and converted approximately $5.3 million of notes into equity securities.

We are also evaluating additional alternatives to retire notes at attractive economics. These efforts are intended to reduce Caliber's near-term corporate debt, though the amount of the reduction remains to be seen. We believe this effort can reduce Caliber's leverage, improve stockholders' equity, and increase financial flexibility as we execute our plan towards profitability in 2026. Turning to our results for the Q2 of 2026. Platform revenue for the Q2 was $3.7 million, compared to $4.1 million in the prior year quarter. This decrease primarily reflects lower development and construction fees due to the timing of project financing, partially offset by growth in fund management fees. Several financings that were expected to close in the Q2 have shifted to later periods, reflecting a change in timing rather than a reduction in underlying activity. We continue to expect these financings to contribute to revenue in 2026.

Total platform expenses for the Q2 were $5.9 million, compared to $5.3 million in the prior year quarter, an increase of approximately 11%. The increase was primarily attributable to an increase in bad debt charges related to additional reserves on certain development and construction fees being deemed uncollectible, partially offset by lower professional fees incurred period-over-period. Platform Adjusted EBITDA for the Q2 was approximately $0.3 million compared to a loss of $0.1 million in the prior year quarter, an improvement of approximately $0.4 million. As revenue strengthens and cost discipline continues across the business, we remain on a steady path toward our 2026 profitability targets. Managed capital totaled $495.6 million at the end of the Q2 a decrease of six-tenths of 1% compared with the prior year.

In terms of our outlook for 2026, we continue to expect total revenue in the range of $18 million-$22 million. We continue to expect approximately 60% of revenue growth to be driven by project-level financing across our existing portfolio, with the remaining 40% driven by capital formation and asset management activities. Based on our current visibility into the pipeline and financing activity, we believe we are positioned to achieve Adjusted EBITDA profitability in 2026. I'll now turn it back to the operator for your questions.

Thank you. We will now be opening the question and answer session. If you would like to ask a question, please press star, then the number one on your telephone keypad. To withdraw your question, please press star one again. We will be standing by briefly for the questions to come in. Thank you. Again, if you would like to ask a question, please press star one on your telephone keypad. That concludes with our question and answer session. I would now like to turn the call back over to Ilya Grozovsky, Vice President of Investor Relations Corporate Development, for closing remarks. Please go ahead.

Thank you. Please visit our website at www.caliberco.com and follow the path for public shareholders. There you can download our financial supplement and presentation and sign up on the mailing list specifically focused for public investors. If you have any questions, please complete the Contact Us form so that we can get engaged with you directly. Thank you for joining today's call and have a great day.

Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect.

Hello, and thank you for standing by. My name is Gliza, and I will be your conference operator today. At this time, I would like to welcome everyone to the Caliber first quarter 2026 earnings 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, press star one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Ilya Grozovsky. Please go ahead.

Good afternoon, everyone. Welcome to Caliber's first quarter 2026 financial results conference call. With me today are Chris Loeffler, Chief Executive Officer and Co-founder, and Jade Leung, Chief Financial Officer of Caliber. Please note that we have a quarterly earnings presentation which will serve as a supplement to today's prepared remarks. You can access the presentation in the investor relations section of our website at www.caliberco.com. After management's commentary, we will open the call for questions. As a reminder, the information discussed today may include forward-looking statements that involve risks and uncertainties. Words like believe, expect, and anticipate refer to our best estimates as of this call, and there can be no assurance that these will actually take place. Our actual future results could differ significantly from these statements.

Further information on the company's risk factors is contained in the company's quarterly and annual reports, and filed with the Securities and Exchange Commission. It is now my pleasure to turn the call over to Chris. Please go ahead.

Thank you, Ilya, and good afternoon, everyone. My comments today will address a few things. The first, an update on our strategic expansion into digital assets and blockchain. Second, some comments on Caliber's financial position. Third, our private equity real estate platform and related project activity. Fourth, ending with an update to our revenue and profitability outlook for 2026. Before walking through these topics, I'll briefly frame the quarter. Our first quarter results were in line with the internal plan we built for 2026. Platform revenue grew nearly 16% year-over-year, and our platform-adjusted EBITDA loss narrowed by approximately $1 million. We also executed across both sides of the revenue plan we laid out at year-end, driving capital formation and project-level financings. We are reaffirming our full year 2026 guidance today, and Jay will walk through the financial details later in the call.

I'll start with our digital asset strategy because I think there's more for the market to understand about what we have been building over the past nine months and is currently reflected in our share price. Before walking through Caliber's approach, it's worth establishing the scale of the opportunity we are positioning into. According to a recent report from Pantera Capital, the global tokenization market today represents approximately $320 billion in tracked value across 593 tokenized assets, up from roughly $200 billion in 2024. Tokenized U.S. Treasuries alone have grown from nearly zero in 2021 to approximately $12 billion today. Institutional participants now include BlackRock, Franklin Templeton, JP Morgan, Apollo, WisdomTree, Fidelity, and every other major bank which now has a tokenization strategy.

This is the market that Caliber's digital asset strategy and real estate tokenization work are being built to participate in over the coming years. When we announced our digital asset treasury, or DAT strategy in August of last year, we laid out three priorities. First, building a treasury position in digital assets, specifically LINK tokens, to give Caliber and our shareholders exposure to the upside potential of the infrastructure technology we believe is core to the future of tokenized finance. Second, expanding Caliber's asset management platform into digital asset-related products and investment vehicles, growing our fee-generating AUM in this category, as well as digital asset-centric businesses, growing our earning potential through accretive transaction. Third, applying tokenization technology to our existing real estate funds platform to enhance capital formation, add liquidity features for investors in our funds, and reduce operating costs through a more efficient investment administration.

Turning back to the DAT. Over the nine-month period since we announced the strategy, the capital markets environment for digital asset treasury strategies has become significantly more difficult. The price of LINK declined materially, and the broader access to capital for companies pursuing this kind of strategy contracted across the marketplace. In that environment, we made a deliberate decision to slow the pace of treasury accumulation rather than continue deploying capital into a falling market. We believe that decision protected our stakeholders. At the same time, we accelerated execution on the other two pillars of the strategy to ensure that no time was wasted waiting for market conditions to come our way.

Over the past nine months, we have built the internal team and external relationships required to tokenize our real estate offerings and are now actively working to tokenize our Steamboat Springs Hyatt Studios offering and our PURE Pickleball & Padel projects, two of the first real estate projects in our portfolio to be tokenized. We deepened our relationship with Chainlink, the protocol underlying LINK, and announced the first component of that relationship coming to fruition. The implementation we are currently executing of Chainlink ACE, an automated compliance engine on our tokenized funds. We completed the build-out of a master staking agreement that gives us the ability to execute direct staking relationships with node operators as we draw the treasury. This gives us a source of yield on our treasury assets.

We continue to build an active pipeline of potentially accretive strategic opportunities, including potential acquisitions and joint venture partnerships that could accelerate our position and goals for the growth in the digital asset and tokenization space. Turning to the treasury itself, at the end of the first quarter, we held 507,560 LINK tokens with a fair value of approximately $4.5 million. During the quarter, we sold approximately 55,000 LINK tokens for proceeds of half a million and redeployed that capital into our real estate platform to support the closing of project-level financings, including our Hyatt Studios development in Steamboat Springs. This is exactly how we believe a corporate treasury should function in a diversified asset management business. It provides flexibility to allocate capital where it generates the highest return for shareholders.

Our real estate platform is where we're seeing the most immediate revenue growth opportunity in 2026, the treasury supported that execution. Looking forward, we believe the recent stabilization in LINK's price reflects market conditions that support our long-term thesis. To that end, we are evaluating multiple ways to harvest capital from our real estate platform, including from the short-term cash positions Caliber holds to its growing pipeline of new projects and developments, to again grow our LINK treasury position. We remain long-term investors in LINK and long-term believers in the technology and the broader Chainlink ecosystem. We continue to see digital assets and tokenization as a meaningful long-term growth vector for Caliber, and we are positioning the platform now to capture that opportunity over the coming years. Turning to financial visibility, our focus in 2026 is on executing financings and converting our existing pipeline into realized revenue.

We've updated our platform performance supplement through March 31, 2026, which provides investors with a clear view of our operating business. This supplement excludes consolidated assets and focuses on the portion of our platform that directly drives shareholder value. At the end of the first quarter, our estimated performance allocations totaled $99 million, down from $104 million in the prior quarter and up from $88 million in the year-ago quarter. Turning to fundraising, managed capital at the end of the first quarter was $490 million, compared to $517 million in the previous quarter and $495 million in the year-ago quarter. The decrease relative to the prior quarter was primarily driven by the disposition of assets, partially offset by new fundraising.

Our underlying capital formation activity in the first quarter remained consistent with our plan, we expect managed capital to grow over the balance of 2026 as new fund offerings come into the market. In the first quarter, our wholesale distribution channel deepened its penetration with existing selling member firms by adding four new producing advisory relationships, bringing our total to 25 producing advisors. Subsequent to the end of the quarter, in April, we signed two additional selling agreements with new firms that together represent 218 advisors who are now approved to distribute Caliber's offerings, meaningfully expanding the pool of advisors who can begin producing for us over the coming quarters. We continue to build momentum in the wholesale channel and believe these efforts will bear fruit in the second half of 2026.

Moving on to a review of our real estate platform, we remain focused on investing in hospitality, multifamily, and multi-tenant industrial real estate, which we believe offers Caliber's investor clients the best opportunities in the current market environment. Now we'll turn to updates on assets we manage and the performance of our managed real estate funds. These updates are important because our revenue is directly tied to the progress of these projects, primarily as they reach financing and development milestones. In the interest of your time, each quarter I touch on what I think are the most important changes that occurred during and after the quarter's end, but will not attempt to comprehensively discuss every movement in every fund. Starting with Hyatt Studios. Our Hyatt Studios developments continue to progress as planned.

We have launched three of the four investor offerings supporting our Hyatt Studios developments, with the fourth launching imminently. The Hyatt Studios Steamboat Springs, Colorado transaction closed on acquisition and construction financing in April of 2026 and is expected to break ground during the second quarter of 2026. Steamboat is the first of 15 planned and four identified Hyatt Studios developments under our agreement with Hyatt. Our next two projects that are named, Scottsdale and Georgetown, are in earlier stages of development and were highlighted recently in our April 22nd announcement on the platform. We expect to share details on additional locations as projects advance through the site selections and entitlement phase.

These assets are designed to transition into long-term ownership within Caliber Hospitality Trust, which we expect would exercise an option agreement to acquire the assets once they are built and stabilized, offering Hyatt Studios investors a defined exit and CHT investors a proprietary pipeline of new income-producing hotels. I will also note that we're working to tokenize our Steamboat offering as one of the first offerings we will tokenize. Turning to Caliber Hospitality Trust, or CHT, our private REIT vehicle for acquiring and holding cash flowing hotel assets. CHT is currently focused on acquiring high-quality hotel properties at an attractive entry price, taking advantage of a meaningful price dislocation in the hotel space, where we're seeing opportunities to buy high-quality cash flowing assets at a discount to both their inherent construction cost and to longer term market values.

We are pursuing these acquisitions through both direct cash transactions and through tax-deferred contributions using CHT's UPREIT structure, which gives existing hotel owners a tax-efficient path to roll their assets into a diversified portfolio. A few notable developments in CHT this quarter. In February, we announced the sale of the Holiday Inn Ocotillo in the Phoenix Chandler submarket for $13 million. Proceeds from that sale are being redeployed for debt reduction and to support CHT's growth initiatives. We've also made a significant change in CHT's hotel management approach. A new hotel management company has been engaged to operate five of the six assets currently in the trust. The management transition began with the Hampton Inn & Suites several months ago and has already produced results. Growth operating profit margins improved significantly from 46% to 54% while maintaining similar top-line revenue levels against a relatively soft hotel revenue environment.

The remaining four assets transitioned to new management on June ninth, and we expect similar profitability improvements across the portfolio as the new operator's playbook is implemented. Our pipeline of CHT acquisition opportunities has grown over the past quarter. We are actively working on refinancings across several existing CHT assets, which we expect to fund property-level improvements and contribute to our financing-related revenue in the second and third quarters of 2026. We look forward to announcing additional CHT acquisitions and refinancings as closing timelines firm. Moving on, our PURE Pickleball & Padel project at River Walk in Scottsdale, Arizona, will deliver a world-class facility featuring 50 courts, a full-service clubhouse, a fitness center sponsored by HonorHealth, and catering by Wolfgang Puck. PURE continues to advance towards shovel-ready status after the approval of PURE's building permits during the first quarter.

The focus now is on finalizing construction financing and rounding out the overall capital structure, which is actively in progress. We are also working on tokenization of this offering and are excited about the possibilities it will open up when complete. Turning to Canyon, our large-scale mixed-use project in North Phoenix in the TSMC and Apple Fab development corridor. During the quarter, the HUD construction loan application was approved, and we are filing our firm application shortly. Phase 1 demolition is now completed. All drawings for the first building are being resubmitted, and the garage is close to filing its drawings as well. Moving on to Encore. We continue to advance site development and planning on the commercial leasing activity going on. We have an active LOI with 7-Eleven, an LOI on the apartment site.

United Properties remains in escrow on the industrial site. We're seeing activity from two major big box unit users for the retail site. On project financing, we're making continued progress with our selected financing partner and expect to close on the financing in the near term. Project execution remains tied to financing and infrastructure milestones, which we expect to advance over the coming quarters. Caliber continues to advance its differentiated 1031 exchange offering, which provides investors seeking to place $1 million or more in 1031 exchange capital, a direct path to invest alongside Caliber in the same real estate acquisitions we are pursuing through our funds. The program is new. It uses a tenant in common or TIC structure that partners one investor with Caliber and in some cases, with a small number of other Caliber-aligned investors.

Caliber serves as the administrator of the asset and related TIC interests. Investors who enter through a TIC can ultimately complete a 721 exchange into our Core+ Growth & Income Fund, converting their interest into a diversified, professionally managed fund on a tax-deferred basis. The program is distinctive in the 1031 marketplace for several reasons. First, investors come in at Caliber's cost basis on the underlying acquisition rather than at the marked-up basis typical of larger DST sponsors. Second, the program's cost structure compares favorably to other 1031 offerings in the market. Third, the eventual 721 exchange path into our Core+ Growth & Income Fund provides a long-term liquidity solution that very few 1031 sponsors can offer. We are now pursuing our second asset in the program, the Tonto offering.

Tonto is a 40-60-unit value-add multifamily project in Payson, Arizona, where we plan to complete a light renovation while maintaining occupancy at 90% or greater throughout the renovation cycle. The strategy is to improve the asset's value and continue generating cash flow during the hold period. Value-add multifamily is a category Caliber has historically executed against well, and we are seeing opportunities to acquire multifamily assets at more attractive entry points today than we have seen in years. The Tonto opportunity is indicative of these types of acquisitions, and we expect to pursue going forward more through this type of program. We expect to announce additional 1031 exchange investments as they come into the pipeline.

In summary, the first quarter was executed according to our plan. We expect the remaining of 2026 to be driven by the closing of project-level financings across our existing portfolio, continued capital formation through fundraising, and opportunities for new lines of revenue and cost savings through the tokenization of our real estate assets and Caliber's overarching digital asset strategy. Last quarter, we issued 2026 revenue and profitability guidance for the first time. Today, we are reaffirming those metrics. We continue to believe that our 2026 revenues should deliver in a range of $18 million-$22 million, and both our adjusted EBITDA and net operating income will be positive. With that, I'll turn it over to Jade to review our financial results.

Thank you, Chris. Good afternoon, everyone. I'll start with an update on our efforts to address our corporate note maturities to improve our corporate liquidity position. As of the end of the first quarter, we had 148 individual unsecured notes with an aggregate principal balance of approximately $26.2 million, of which $24.5 million is scheduled to mature within the next 12 months. Each note generally has a 12-month term with an option to extend. In addition to our broader plans and efforts to address the near-term liquidity of the business, we have added an additional initiative. During the first quarter, Caliber's board of directors approved a noteholder conversion program authorizing the ability of holders of Caliber's unsecured corporate notes to convert their notes into Series AA Cumulative Redeemable Preferred Stock.

One-third of the Series AA Cumulative Redeemable Preferred Stock is convertible at $2.50 per share of common stock, one-third is convertible at $3.50 per share of common stock, and one-third is convertible at $4.50 per share of common stock. Management believes the perpetual preferred stock structure is favorable to all shareholders as converted notes would be reclassified from debt to equity. This program supplements our previously announced Caliber common stock conversion program. Approximately $1.5 million of notes were converted into Series AA Cumulative Redeemable Preferred Stock since the program began. Additionally, approximately $1.9 million of unsecured corporate notes were converted into shares of Caliber's Class A common stock in a voluntary conversion program elected by the individual noteholders during the first quarter.

Together, these actions have reduced Caliber's corporate debt by approximately $3.4 million in this round of the program and approximately $5.3 million in total since the program's launch in October of 2025. Participation in the common stock conversion program is also voluntary, with terms structured in accordance with Nasdaq rules for at-the-market transactions. We continue to believe these dual programs can reduce Caliber's leverage, improve stockholders' equity, and increase financial flexibility as we execute our plan towards profitability in 2026. Over the past 12 months, we have made meaningful progress addressing our near-term liquidity, and we expect to continue making progress through a combination of capital initiatives and operational execution. Turning to our results for the first quarter of 2026, platform revenue for the first quarter was $4.1 million, compared to $3.5 million in the prior year quarter.

Fund management fees increased 3.7% year-over-year, while construction and development revenue declined, primarily due to the timing of project financings. Several financings that were expected to close in the first quarter have been pushed out, reflecting a shift in timing rather than a reduction in underlying activity, and we expect these financings to contribute to revenue in 2026. Total platform expenses for the first quarter were $5.4 million, compared to $6.1 million in the year-ago quarter. A decrease of 11% compared to the prior year, primarily driven by reductions in payroll and related expenses. Average employee headcount decreased 31% from the first quarter of 2025 to the first quarter of 2026 as part of our continued comprehensive cost savings initiatives to return Caliber to profitability. This moved our total employees from 74 to 51 as of the end of the first quarter.

Platform adjusted EBITDA for the first quarter was a loss of less than half a million dollars, compared to a loss of $1.4 million in the prior year quarter, a 75.9% improvement. As revenues continue to strengthen, matched against an improved cost discipline across the business, we are on a predetermined yet steady path to return to profitability in 2026. In terms of our outlook for 2026, we continue to expect total revenue in the range of $18 million-$22 million. We expect approximately 60% of revenue growth to be driven by project-level financings across our existing portfolio, with the remaining 40% driven by capital formation and asset management activities.

Based on our current visibility into the pipeline and financing activity, we believe we are positioned to achieve adjusted EBITDA profitability and positive net operating income in 2026. I'll now turn it back to the operator for your questions.

At this time, I would like to remind everyone in order to ask questions, press star one. We'll pause for a moment to allow questions to come in. Your first question comes from Michael Diana from Maxim Group. Please go ahead.

Thank you. Chris, you talked a lot about what you're doing here depends on financing and refinancing. Could you just give us a sense for the environment for that right now, given where the Fed is, given the Iran war, given everything. You're reaffirming your guidance, you obviously have confidence that all those financings and refinances are going to happen. Could you give us a little more color?

Yeah. I wouldn't say it's back to the easy days of the pre-COVID, pre-interest rate rise timing. I would say that real estate finance tends to go in cycles. We went through a very tough cycle between 2023 and the end of 2025 when real estate financing volumes were down significantly. While there's still a lot of challenges in loan portfolios, in private credit, there's still a lot of financings that are past maturity and issues across the board in commercial real estate. The ability to get new financing on existing assets and developments has not been better for us than it has been, at least in the last couple of months, than it certainly has been in the last two years. It is better. It's getting better.

I would be pretty surprised if it reversed course because that's typically not how it works in real estate. We typically go through kind of multi-year cycles that resolve over time. On the other side, because there are still quite a few assets that are at maturity or past maturity and quite a few projects that are struggling from lack of ability to refinance, that's what's driving the opportunity for us to buy discounted property. We have suffered through the financing environment, it seems to be getting much better. We're closing financings like we just did on a construction loan in Steamboat at a really attractive kind of mid-sevens rate. We're seeing that financing environment is driving our acquisition opportunities.

All right. Well, thank you very much, and that's really good to hear.

Again, should you ask questions, please press one in your telephone keypad.

Great. It doesn't seem like there's any more questions. Thank you for your time today. Caliber Management will be participating in the Planet MicroCap Conference on June 16th through 18th in Las Vegas. If you are attending the conference and interested in arranging a one-on-one meeting with Caliber Management, please let us know or use the conference portal. Please visit our website at www.caliberco.com and follow the path for public shareholders. There you can download our financial supplement and sign up for the mailing list specifically focused for public investors. If you have any questions, please complete the Contact Us form. We can get engaged with you directly. Thank you for joining the call today. Have a good evening. You may now disconnect.

Ladies and gentlemen, that concludes today's call. Thank you for joining. You may now disconnect.

Thank you for standing by. My name is Jordan, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Caliber Third Quarter 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Ilya Grozovsky, Vice President of Investor Relations and Corporate Development. Please go ahead.

Good afternoon, everyone. Welcome to Caliber's Third Quarter 2025 Financial Results Conference Call. With me today are Chris Loeffler, Chief Executive Officer and Co-Founder, and Jade Leung, Chief Financial Officer of Caliber. Please note that we have a quarterly earnings presentation which will serve as a supplement to today's prepared remarks. You can access the presentation in the Investor Relations section of our website at www.caliberco.com. After management's commentary, we will open the call for questions. As a reminder, the information discussed today may include forward-looking statements that involve risks and uncertainties. Words like believe, expect, and anticipate, refer to our best estimates as of this call, and there can be no assurances that these will actually take place. So our actual future results could differ significantly from these statements. Further information on the company's risk factors is contained in the company's quarterly and annual reports, filed with the Securities and Exchange Commission. It is now my pleasure to turn the call over to Chris. Please go ahead.

Thank you, Ilya. Good afternoon, everyone. The 2025 was truly a transformational quarter for Caliber. During the quarter, we expanded our business into digital asset investments, starting with the launch of our digital asset treasury, or our DAT strategy. This DAT is anchored in Chainlink's LINK token, which we believe represents the best opportunity to invest in the infrastructure underlying decentralized finance. As the world of decentralized finance, or as it can often be referred to, DeFi, is still new to many, I'll take some time to share our point of view with you and where we see the opportunity. As we discuss DeFi, I'll also use the term digital finance to help you understand the differences between digital finance and traditional finance. One of the most active trends in finance as a whole is the movement of traditional finance, or TradFi, on-chain or onto blockchain technology. This is also called the merging of TradFi and DeFi. Caliber's strategic decision to expand into digital asset investing positions the company at the forefront of this global trend. It also marks our expansion from a pure play real estate asset management company to a diversified alternative asset manager offering exposure to our shareholders across both real and digital assets. In connection with this expansion, we strengthened our balance sheet by raising more than $30 million, which improved our liquidity, reduced debt, and positioned Caliber for continued growth. We began accumulating LINK tokens under our new DAT and to our knowledge, Caliber is now the first and largest LINK-based treasury company among US public companies. We also established the Caliber Crypto Advisory Board, or CCAB, bringing in leading experts from across blockchain, capital markets, and digital infrastructure to guide our expansion in this new asset class. Caliber has always sought the best people and advice it can find, and as we expand our business, we will continue to grow our reach in this new category of investment. Speaking to the first of three Caliber Advisory Board members, Peter Dorius brings significant compliance, structure, financial management, and technical expertise to Caliber regarding digital assets and blockchain. Blake Janover executed as the CEO of one of the most successful digital asset treasury transformations in the public markets this year, his company becoming the first DAT investing in the Solana token. And Michael Trupac has been a long board member of Caliber's as well as the financial architect of the public listing of Core Scientific, one of the largest Bitcoin mining companies in the United States. Speaking to our DAT strategy, our goal is to continue building Caliber's LINK holdings in a disciplined and measured manner. The early stage of this strategy is focused on LINK accumulation and staking our tokens. Staking is a process that generates an annual yield to Caliber on its tokens held in treasury, similar to a cash treasury generating annual interest. Our strategy offers investors who choose to invest in CWD stock rather than LINK token directly, the ability to obtain an actively managed, leveraged position in the future of LINK as well as the ability to generate a higher annual yield per token than they may otherwise be able to obtain. Beyond accumulation of LINK and staking for yield, our long-term vision is to utilize Chainlink's infrastructure along with other elements of DeFi, to tokenize Caliber's real estate funds and the underlying real estate in those funds. The tokenization of real-world assets, including private equity real estate funds like those that Caliber creates and manages, is beneficial to improving the operations of those funds, improving the liquidity for investors in each fund, and improving the transparency for fund investors to understand what they own and what it is worth. And, ultimately, accelerating fundraising for Caliber and its family of funds through tokenized offerings. Caliber joins many of the great financial institutions in the United States in making a serious commitment to DeFi and the tokenization of its assets. Just in the last few months, we've seen the largest asset managers in the world, exchanges, and banks in the United States take advantage to tokenize a wide range of financial instruments, including stocks, bonds, and mutual funds. Commonly in the DeFi community, the discussion turns from tokenizing stocks and bonds to tokenizing private funds and real estate. This is the next frontier for tokenization and Caliber expects to be an innovator in this space. While our business has expanded, our long-term objective continues to be ensuring that Caliber produces consistent profitable growth while maintaining an annual EBITDA margin of 25% or greater on a sustainable basis. Touching on the real estate private equity industry that Caliber competes in, the backdrop for commercial real estate continues to improve. We're seeing clear signs of stabilization in asset values, which we believe sets the stage for a multiyear opportunity cycle. One that aligns with Caliber's strengths in complex value-add and distress transactions. The passage of the one big beautiful bill made the Opportunity Zone program permanent in the US tax code and reinstated 100% bonus depreciation. These provisions created strong tailwinds for Caliber's fund strategies and are expected to bolster fundraising and deployment activity across our platform. We remain focused on investing in hospitality, multi-family, and multi-tenant industrial real estate, which we believe offers Caliber's investor clients the best opportunities in the current market environment. Turning to financial visibility, we have updated our platform performance supplement through 09/30/2025. As a reminder, this supplement excludes consolidated assets to provide investors with a clear view of Caliber's operating business, the part of our financials that directly drives shareholder value. At quarter end, Caliber's estimated performance allocations or our carrying interest, totaled $90.5 million, up sequentially from $84.8 million. We've continued to report this number each quarter since publishing it in our 2024 10-K, to help investors better understand how incorporating carried interest into book value transforms the view of Caliber's underlying net worth. The full supplement is available on our website, and we encourage all shareholders to review it for additional insight into our true economic value beyond GAAP results. Continuing with some business updates, fundraising continues to strengthen in the third quarter, led by growth in our wholesale distribution channel. Managed capital reached $506 million, up from $498 million in 2025 and $485 million in the same quarter last year. Wholesale fundraising production in Q3 exceeded all of 2024 combined. We added three new selling group relationships, and a total of eight firms contributed to revenues during the quarter. This momentum demonstrates that our distribution model is scaling and sets us up well for continued fundraising growth into 2026. Now I'll turn on updates on the assets that we manage and the performance of our managed real estate funds. In the interest of your time each quarter, I touch on what I believe are the most important changes that occurred during and after the quarter's end, but will not attempt to comprehensively discuss every movement in every fund. These updates matter because as Caliber shareholders, you benefit from the fees and carried interest generated by our managed funds and assets. While you may not directly own those underlying properties, your returns are tied to the success of the investors and the funds that we manage, so their performance is our performance. Starting with our PURE pickleball and Paddell project at Riverwalk in Scottsdale, Arizona, this development will deliver a world-class pickleball and Paddell facility featuring 50 courts, a full-service clubhouse, and a fitness center sponsored by HonorHealth. During the third quarter, our joint venture signed a ten-year exclusive agreement with Wolfgang Puck Catering, part of Compass Group, the largest food service provider in the country, to provide all food and beverage operations across PURE's restaurants, concessions, and event spaces. As part of this agreement, we believe Compass Group will deliver a significant amount of annual corporate event business to PURE, and that combined with Caliber's expert asset management team will drive the project's profitability. On September 12, we completed and submitted our full construction document set which has been accepted for review by the Salt River Pima Maricopa Indian Community. This marks the start of the building permit process, the final step before vertical construction begins on the 186,000 square foot facility. Expect construction to take up roughly fifteen months once the permits are approved. Turning to Canyon Village, our large-scale mixed-use project in North Phoenix, the team has advanced to working drawings, with demolition permits expected immediately. Initial construction activities will proceed in parallel with final design completion. We have secured a $57 million construction loan commitment from the U.S. Department of Housing and Urban Development, or HUD, to finance Phase one of Canyon. The underwriting process is ongoing, and we expect to close in 2026 subject to customary closing conditions. This long-term fixed-rate financing structure may improve project economics and may have the potential to boost returns beyond those modeled in the current pro forma. Canyon is well located to benefit from major regional investments, including TSMC or Taiwan Semiconductor's $165 billion semiconductor plant in Phoenix, and Apple's announced $100 billion US infrastructure expansion. Adjacent to our project, we are pleased to share the planned $800 million redevelopment of the former Metro Center Mall, now branded The Metropolitan, has moved into active construction. Strengthening the area's demand drivers and positioning Canyon for long-term success. At ENCORE, we made steady progress on financing and development during the quarter. Last week, the project was approved by town council in Johnstown for a special improvement district or SID financing, which provides for approximately $14 million in infrastructure financing via the sale of bonds. Engineering and permitting for Highway 34 are complete, and final and civil utility construction plans have been approved. The overall on-site infrastructure build-out is expected to take approximately fourteen months, following the start of construction. Caliber continues to advance negotiations with several national retailers for PAD sites, and property sales are targeted to begin in late 2026, following substantial completion of the on-site improvements. In terms of Caliber's primary hotel investment vehicle, Caliber Hospitality Trust, we are working on refinancing several of the hotels in the CHT portfolio, and using the capital for improvements to the properties in order to grow their net operating income. We continue to advance a strong pipeline of acquisition opportunities for CHT, including both cash transactions and tax-deferred portfolio acquisitions. We look forward to announcing these acquisitions once closing timelines are firmly established. Overall, the third quarter was a turning point for Caliber. We strengthened our balance sheet with more than $30 million in new capital, reduced debt, and launched our digital asset treasury. Expanding Caliber into a diversified alternative asset manager, with exposure to both real and digital markets. Operationally, we made meaningful progress across our core projects, advancing financings, permitting, and construction milestones that position our funds and assets for value creation in the quarters ahead. Our fundraising momentum continues to build, supported by the growing reach of our wholesale distribution channel and a favorable legislative environment for opportunity zone investing. Taken together, these accomplishments create a stronger and more resilient platform with improved liquidity, expanding uses of fee income, and a clear path towards sustainable profitability in 2026. With that, I'll turn it over to Jade to review our platform financial results and provide more insights into Caliber's business performance.

Thank you, Chris. Good afternoon, everyone. I wanted to start with an update on the improvement of Caliber's balance sheet. During the third quarter, we raised about $30 million in gross proceeds via both our Series AA and newly issued Series B preferred stock, in addition to the common stock we issued through our e-lock and ATM programs. Our Series B are a perpetual convertible preferred that converts at $2.50 per share. And at the end of Q3, we held approximately $10 million in cash, $10 million in our LINK digital treasury, and transformed our nearly $17 million in negative shareholders' equity into a positive $6 million of shareholders' equity. A few weeks ago, we announced that we believed we had met the NASDAQ listing requirements of a minimum of $2.5 million in shareholders' equity. Our Q3 results will prove as such. Our delisting notice came as a result of the application of certain complex technical accounting conclusions around our consolidation model, and we believe we have and will continue to take the measures to meet and maintain compliance with this requirement going forward. Turning to an update on our corporate notes. As of the end of Q3, we had 194 individual unsecured notes, with an aggregate principal balance of approximately $31.5 million, of which about $24.4 million will mature within the next twelve months. Each note generally has a twelve-month term with an option to extend for an additional twelve months. Subsequent to the end of the third quarter, we announced that Caliber's Board of Directors approved a note holder conversion program authorizing the ability of holders of certain of Caliber's unsecured corporate notes to convert their notes into shares of the company's Class A common stock. The program allows note holders to convert notes in tranches, each tranche allowing up to an aggregate of $3 million to be converted. Participation in the program is entirely voluntary, with conversion prices determined according to Nasdaq's rules for market transactions. The program is expected to significantly reduce leverage, improve stockholders' equity, and increase financial flexibility as Caliber advances towards its goal of profitability in 2026. The first $1.9 million in voluntary conversions has already been filed with the commission. We also continue to address our corporate debt via our two preferred stock offerings, Series A and Series AA. The Series A is our private placement convertible preferred stock through which we can raise up to $15 million. Today, we have raised approximately $2.4 million. In Series AA, the Series AA is a Reg A plus offering to raise up to $20 million. Half of the proceeds from the Series AA are expected to be used to repay mature corporate notes. The other half will be used for general corporate purposes, including funding Caliber's plans for growth. To date, we have raised approximately $3.2 million. We believe these measures are a part of a holistic plan of strong corporate finance and they will help us manage satisfying our commitments as they come due. Now turning to our results for 2025. 2025 Q3 platform revenue was approximately $3.5 million, a decrease of 52.7% from the prior year quarter. While we saw modest expansion in our asset management fees, overall fund management fees declined due to one-time revenues earned in the same quarter of 2024, from opening new funds. We also saw a meaningful slowdown in our construction and development activities of approximately $2.5 million compared to the prior year same quarter. We continue to identify and close on financing for our projects. And while we have seen some improvement in the financing market, closing timelines have elongated. Project financing that we expected to be closed and available for Q3 has pushed into Q4, and 2026, at which time we anticipate our construction and development revenues will rebound. Total platform expenses in Q3 were $5.5 million, a decrease of 47% compared to last year's Q3 expenses of $10.4 million, primarily due to a decrease in operating costs related to payroll and payroll-related expenses. Average employee headcount decreased 44% from Q3 2024 to Q3 2025, as part of our continued comprehensive cost-saving initiatives to return Caliber to profitability. We are now seeing and will continue to see the impact of our cost reduction efforts we began implementing this time a year ago. These impacts on our performance translate to platform adjusted EBITDA loss for the third quarter of $700,000 compared to a platform adjusted EBITDA of $2.4 million during the same period a year ago. Managed capital was $56 million, a 4% increase compared to the year-ago quarter. I'll now turn it back to Ilya for your questions.

Operator, we're ready for questions.

Thank you. As a reminder, if you'd like to ask a question, press 1 on your telephone keypad.

We have a question from Brendan McCarthy from Sidoti. Your line is live.

Great. Hey, Chris. Hey, Jade. Appreciate you taking my questions today. I just wanted to start off on the digital asset treasury. Chris, I think you started off by mentioning, you know, there's an opportunity for higher annual yield per token per staked LINK token, I should say. Can you expand on that and how that would ultimately materialize?

Sure. I will attempt to do that. How are you doing, Brendan? Hope everything's going good. Good. We have discovered as we've entered into the space that LINK in particular and, you know, the token underlying Chainlink has maybe a different staking structure in mechanism than others that you might be familiar with. And so I'll just cover it with a little bit of granularity if you'll permit me at the time. So in essence, there's about 45 million tokens that are available to be staked. The majority of them are staked by Chainlink and the team itself within the company. And the purpose of staking is to provide collateral value against the operation of the decentralized oracle network. And so the magic of what Chainlink does is it basically powers the ability for a lot of traditional financial institutions, and I'm talking institutions like JPMorgan Chase and Swift and S&P Global and the United States federal government and many others that are utilizing Chainlink in different ways, to access blockchain and public chains and to do business on-chain. In order to do that, they instead of saying, okay, we're gonna be the provider of single provider of data to you, and that data is gonna come from one node. That could fail or could have a problem. It's a decentralized network of nodes. There's lots of different node operators who validate the data that goes into that kind of flows through the Chainlink Oracle network. And those decentralized node operators have to have a stake or they essentially an amount of collateral at stake that if they're having failures in their delivery of data or they're delivering bad data that they could be at risk for. So the stake in the token of LINK is critical to the operation of Chainlink, the Oracle network, and essentially for their ability to deliver the services that they provide to the market. So to make a long story short, there are a lot of different ways to get your LINK staked into the pool. But with about 700 million tokens out there and only about 45 million available to be staked, it's a relatively small pool of access that any investor could get into in the first place. Something called a community pool, that is about 5 million tokens. And it's full. And it's got a waiting list. So if you go out and buy some LINK tokens yourself and say, hey, I'd like to generate some return off of these tokens, rather than just hold them for appreciation. You can stake them in the community pool, have to get in line. You have to go through a waiting period and at some point in time when someone pulls their tokens out of the community pool, you can put yours in. In my estimation, it will take quite a while for you to get a sizable amount of your LINK staked. The other option is you can use something called liquid staking, which is kind of a further I would say, riskier version of staking, for a variety of different reasons that I won't go into on the call. In the community pool, you're earning about 4.3%. What Caliber has discovered is the first institutional sort of public holder and investor in LINK token, we've gotten outreach from many of the best node operators in the Chainlink system where we can essentially stake our tokens directly with the node operator themselves, generate a much higher yield on our investment. We estimate that could be around 8% to 10%. So that's what we've discovered is just by holding a large portion, being able to do business directly with a node operator, we could get a better rate of return essentially in our tokens, which I think is pretty attractive for shareholders.

Absolutely. That's very interesting, and I appreciate the detail there. And I know in the press release, mentioned that Caliber isn't staking any LINK tokens at the moment, but as far as timing, are you able to provide any color as to when you might be able to realize some of that income from staking?

Yeah. We're actively pursuing these opportunities, and certainly, the level of detail I have is come from real discussions with node operators. We expect to be able to announce, and we will as we get some of our LINK staked. We'll make public announcements so you can track with us.

Got it. Got it. And once to talk about your initiative with, you know, tokenizing, you know, real estate funds and interest in the funds. Just curious as to, you know, how far away, you know, we might be from actual tokenization of your assets and bringing them onto the blockchain. I know really an initiative that we've seen across, you know, many different kinds of securities, including equities. But just curious as to have whether you are, you know, making any incremental CapEx into tokenizing assets at this point or maybe how far away we are from that?

Yeah. I was you know, as my dad taught me where there's a will, there's a way. And when you the reason why we wanted to build a digital asset treasury and Chainlink was we do believe it's the fundamentally the most undervalued opportunity in crypto. And by investing in LINK tokens, we're investing in the underlying infrastructure of digital finance. We don't have to bet on who's gonna use Bitcoin more or Solana more or, you know, we're making a bet basically on the fact that more and more finance will be digital in the future. Which we think is a very strong and thoughtful bet buying essentially the picks and shovels of the change from traditional finance to digital finance. With LINK. Having said that, we don't know everything yet, and we thought the smartest move to enter into digital finance was to establish a treasury and that would attract some of the best and brightest to us. And that seems to be what's happening. So since we made the announcement several months ago, and we've announced our intentions and what our strategy is, we've started to get connected to I'd say, a slew of incredibly smart people that are helping us to navigate those decisions. And what I've learned is that, you know, what I thought would have been maybe a six to twenty-four month type process because of the complexity of it, is probably not nearly as long of a process as you would think. It's easier to tokenize a simple public security like a stock versus a private fund but that doesn't mean it's meaningfully more difficult to tokenize a private fund. So we're in the process of exploring it. I expect that we will make progress and report our progress out pretty consistently. And the benefits to tokenization are really three things. First, better operations. So in essence, the ability to run the platform Caliber has already built in a more efficient manner and hopefully in a more profitable manner. Two, secondary liquidity. So if an investor owns a fund, the fund's been tokenized, they can maybe make a decision to sell their shares outside of the fund managers' decisions, which could be interesting to many. And then, third is very cogent for Caliber's growth is primary capital. So if to the extent we have a really interesting project, like our pickleball project, where we think that tokenizing and offering and distributing it more broadly would be interesting to investors. We can do that and raise more capital hopefully, more quickly and hopefully at a great price. So we see a lot of value in tokenization of funds and assets. We didn't enter the space claiming to be experts, but we seem to be attracting some great experts to the business.

That's great. That's really interesting. Just looking at the, you know, over in Europe, I think that they've begun to tokenize certain, you know, stocks and equity securities. But do you see any large or notable regulatory hurdles to tokenizing private real estate funds?

Yeah. That's I would say that there's a couple things that we're all waiting on. We're waiting on the passage of this clarity act, which will be the bill that just provides, you know, not surprisingly clarity to what is a security and what is a token. Our point of view is that Chainlink itself is a utility token and not a security. But it appears from what we're seeing from the SEC that if you're gonna tokenize something that is a security itself, then that token itself will also be treated as a security, which makes a lot of sense. I'm kind of common sense, actually. So there are some really interesting companies that are tokenizing securities. We most recently saw, I think, the big headline was when Tesla tokenized its equity, and it was up, like, 15% in a day or something incredible like that. And the value of tokenizing these equities is now these stock trades twenty-four hours a day in any venue across the world instead of only on a single exchange. That can be interesting. If you have an interesting story, like in Caliber's example, as being the first digital asset treasury company in LINK token, that may be interesting to investors around the world. So are there regulatory hurdles to tokenizing public equities and bonds in mutual funds, those seem to have been overcome. As it relates to private funds, you're gonna tokenize a private fund and you don't have the ability to sell or make a market in that private fund securities, that's where you're gonna have, you know, clarity will be helpful from the regulators on how to do that and if you can do that, in what manner you need to do it.

Understood. I appreciate the detail there. Just a couple quick questions on the real estate side of the business. So it sounds like there's been solid momentum in wholesale fundraising. I think you mentioned so far or just in Q3, it exceeded all of 2024. Do you expect that momentum to continue? And what's really been driving the momentum there?

Thanks. Yeah. Not surprising to us. Wholesale is a channel you need to dedicate yourself to. First, you have to prove yourself to advisers over the course of months and years. And as you start to do that and start to perform, those advisers will adopt and increasingly adopt our products into their practice. And so what we expected was a slow and somewhat expensive process to get infused into the channel, which is what we've been doing for the last two years. And then we expected at some point in time to start to see momentum pick up. I'd say we're still in the very, very early innings of our expectations around what wholesale can do for this business.

Great. Great. That's good to hear. And last question here just regarding the outlook for positive adjusted EBITDA in the back half of the year. Is that still or maybe in Q4 at this point, is that still a realistic expectation?

Yeah. I think we said in our last call, we expected that the fourth quarter could be profitable with positive adjusted EBITDA. That was really driven by some of the event-driven financings that Jade mentioned during his portion of the call. Some of those financings have just been pushed out due to timing and the slowness of the capital markets these days. Some of them into the fourth quarter, from the third quarter and some potentially into the first quarter. So it's really, you know, that outcome for Q4 is really dependent on those financings closing in the quarter for the quarter. Or if they get pushed into the first quarter of next year. The bad news is they're somewhat delayed. The good news is that they're all still happening. So we're really just talking about timing.

Got it. I appreciate the detail and congratulations on the balance sheet improvement. That's all for me.

Thank you very much.

There are no further questions for Q&A. I'd like to turn the call back over to Ilya Grozovsky for closing remarks.

Great. Thank you for your time today. Caliber management will be participating in the Benchmark Discovery Conference in New York on December 4. Please visit our website at www.caliberco.com and follow the path for public shareholders. There, you can download our financial supplement and sign up for the mailing list specifically focused on public investors. If you have any questions, please complete the contact us form so we can get engaged with you directly. Thank you for joining today's call, and have a good evening.

This concludes the meeting. You may now disconnect.