ELWT

Image source: The Motley Fool. Tuesday, Aug. 18, 2026 at 8:00 a.m. ET Investor Relations - Matthew Kreps Executive Chairman - Daniel McDonough Chief Executive Officer - Barry Rubens Chief Financial Officer - James Di Bartolo Operator: Good day, and welcome to the Elauwit Second Quarter 2026 Results Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. Matt Kreps of Investor Relations for the company. Please go ahead, sir. Matthew Kreps: Thank you, and good morning to all. Thank you for joining us today to discuss Elauwit's Second Quarter 2026 Financial Results and Business Update. The earnings release covering our 2Q 2026 results is now available on the Investors page of our website at investors.elauwit.com. We plan to file our Form 10-Q in the next few days. I would encourage you to review the full text of the release and the accompanying financial tables in conjunction with today's discussion. This conference call is being webcast live and will be available for replay on our Investors page. Speaking on the call today are Executive Chairman, Dan McDonough; Chief Executive Officer, Barry Rubens; and Chief Financial Officer, James Di Bartolo. We will cover our prepared remarks on the business and financial results, then open the call for questions from our analysts and institutional investors. Please note that during this call, management will make projections and other forward-looking statements regarding our future performance. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those noted in the earnings release, as well as other risks that are more fully described in Elauwit's filings with the SEC. Our actual results may vary materially from those projected in the forward-looking statements. We encourage you to review our filings with the SEC for additional information on factors that could cause actual results to differ from our current expectations. Elauwit specifically disclaims any intent or obligation to update these forward-looking statements except as required by law. We'll also reference adjusted EBITDA, which is a non-GAAP financial measure. A description of adjusted EBITDA, along with a reconciliation of adjusted EBITDA to the most comparable GAAP financial measure, can be found in our earnings release. And with that, I will now turn the call over to Dan. Please go ahead. Daniel McDonough: Thank you, Matt, and thank you to everyone who has joined today's call. I'll begin today with an overview of the business trends. Barry will have a discussion around our operations, and James will provide a few highlights from the financial results. Then we'll open to questions from our analysts. The second quarter showed continued strong progress on the key metrics that will drive our growth in long-term recurring service revenue. We remain fully focused on execution, and the sales activity shows the traction in those efforts. In fact, we achieved record year-over-year and quarter-over-quarter increases in contracted units, with almost 5,900 new units across 21 properties contracted in the second quarter alone. For those tracking, that represents a 16% quarterly increase in contracted units and 33% annual. Year to date, we have signed more than 10,000 units, and the momentum continues into the third quarter. Our activated units also grew substantially, rising 94% year-over-year, and billed units increased 163% year-over-year, supporting growth in our long-term recurring services revenue. While revenue declined in the short term, this was due to the timing of our construction contracts for new networks, which can occasionally have an outsized short-term effect on our quarters at the moment. They are lumpy and not evenly distributed throughout the year, as this quarter demonstrated. Even so, we believe we are still on track to our full-year goals, with more construction activity weighted to the second half this year versus the first half. As we scale, we expect to smooth out the quarters more as construction projects will likely become more evenly distributed through the year, and recurring services revenue will become a larger component of our overall revenue composition. At that point, all of our key customer metrics that measure the overall pace of our business long term, new contracted units, activated units, and billed units increased significantly year-over-year as they did last quarter, and our contracted backlog for long-term services continued to grow. We also have good line of sight to potential new contract awards in our pipeline and contracts that have been verbally awarded ahead to us of formal contracting. The key takeaway here is that contracted units is the most important KPI we track. And with now almost 43,000 units under contract through June 30th and a robust start to the third quarter, I fully expect to exceed 50,000 units under contract before year end. Doing so would achieve a more than 46% annualized increase in contracted units for 2026. These wins will drive both construction revenue and long-term recurring revenue as we seek to build a robust and durable business at Elauwit. Before I hand the call over, I'll do a quick recap of our business for those still new to the story. At its core, the Elauwit model provides simplicity, service, and profit through differentiated broadband infrastructure services provided to multifamily properties in a nearly $26 billion market opportunity. Instead of residents choosing the service provider for just their unit through an inconvenient, expensive, and outdated process, we install and activate ubiquitous carrier-grade gigabit service via fiber and WiFi 6 access throughout an entire property. The internet fee is then included in every new lease on the property as a standard cost, but usually at a savings compared to other market offerings. The resident signs their lease, gets their keys, and the property-wide WiFi passcode at the same time and is online before they even walk into their unit. Once installed, we generate long-lived recurring service revenue from these properties under a managed service or Network as a Service contract. That alone is a compelling case but we take it one step further by integrating the property owner into the monthly recurring revenue stream, which provides a source of profit, increased recurring cash flow, and higher value for their property. We call this the win-win-win model because it creates a compelling case for Elauwit across all three constituents in the transaction, the resident, the property owner, and our business. This is a proven model with a large number of units already under contract, plus a rapidly growing pipeline of new installations ahead as more and more properties seek to expand revenue through added services. We are now moving ahead quickly to expand our service base and sales pipeline of targeted managed services and Network as-a-Service opportunities. In addition to the growth I noted at the start of my comments, our sales team has secured verbal commitments on additional properties, giving insight to our continued selling activity as we work a pipeline of hundreds of thousands of potential units. We also have increasing expected revenue visibility as we scale, with backlog of more than $38 million in construction and recurring service revenue. The first half of this year has also included a heavy focus on creating a more efficient operating structure. Barry can speak to this more in a moment. We have invested in enhanced business intelligence such as next generation ERP and advanced inventory platforms to provide real-time visibility into business health and rigorous cost controls. We are also partnering with software development experts to bridge disparate systems, reducing duplicative data entry and reclaiming valuable leadership time. We are scaling our network operation center and account management teams to provide a consistent customer experience. We are implementing AI and LLM tools to integrate vendor platforms into a single pane of glass, accelerating root cause analysis and proactive service level resolution. We have structured our project management office into pods, specializing in new construction and conversions that pair senior project managers with on-site construction managers for seamless stakeholder reporting. We are also prioritizing automation through custom and off-the-shelf tools to allow our network engineering team to provision and activate properties with unprecedented efficiency. With that, I will turn the call over to Barry. Barry Rubens: Thank you, Dan, and good morning, everyone. We are excited to be here and share the exciting progress as the vision for growth that continues to drive our business forward. As Dan said, we track our revenue-generating business across 3 nested metrics once a property is under contract. The first contracted units, those waiting to be built or in the process of installation. Then activated units that are fully installed and turned on for service, but may not be fully billing yet due to onboarding. And lastly, billed units that are fully generating recurring service revenue under our managed services or NaaS contracts. As a reminder, activated units represent the rollover period throughout the 12 months following installation, and we onboard their costs pro rata to align with property lease renewals. In short, when we complete an installation, we know that we have 12 months of growth ahead, then long-term, stable, and sticky recurring revenue for years to follow. Giving some numbers to these categories based on June 30, 2026, counts. Contracted units, those waiting to be built or in the process of installation, along with units we currently serve, increased 33% to 42,687 from 32,094 at the end of the prior year period. Activated units, units that are fully installed and on, but may not be fully billing yet due to onboarding, increased 94% to 27,134 from 13,960 at the end of the prior year period. Billed units that are fully generating revenue under our managed services or NaaS contracts, increased 163% to 22,967 from 8,733 at the end of the prior year period. These numbers are the metrics we track in terms of leading indicators for long-term performance. They indicate our overall scale and the expected growth already built into our system over the next 6 to 24 months as contract units are installed, activated, and converted to billing. It is a steady, relatively predictable arc as we scale and will ultimately lead to a better ability to forecast the core of our business on both an annual and multi-year outlook. A second set of key metrics is the sales and contracts pipeline, which has also grown considerably over the past few quarters. As the announcement today indicated, our awarded contracts number is moving rapidly north with 16,000 units committed in writing or verbally through June 30. It is interesting to note that our business often gets verbal awards first, and then these paper pretty reliable over a few weeks or months following. These awards to date represent units across 57 properties and 21 different ownership groups for installation over the rest of 2026 and 2027. Our pipeline is robust with more than 500 properties and 98,000 units in our tracking system and a much larger addressable market beyond that. Digging into our sales activity a bit more, we have been engaged in an exciting sales effort this year, testing a number of new strategies and approaches throughout the first half. We expanded the sales team, deployed a number of in-person and AI-driven strategies, and tested different targeting and approach vectors to determine what worked best for us. Now we have sharpened our efforts based on feedback that we have seen to date. That includes, right now we are targeting higher density markets, which we often have properties located in, which will give us greater selling and installation efficiency as we win accounts. We're also working closely with large property owners to onboard even larger portions of their total portfolios through incremental property additions. This land and expand strategy has been working well and simplifies the sales process since they can simply refer to the already excellent service and economic benefit they are seeing at properties they have already awarded to us. The press release of wins at two large national multifamily property REITs is a great example, having won thousands of units, but with hundreds of thousands of units of incremental opportunities still available for future wins. The increased focus on higher density markets is also benefiting us in targeting the middle tier of owners, often managing 2,000 to 5,000 units in total. This is a big part of our total addressable market, and we believe we are better able to address sales into that segment of the markets under our organization. I should note, and James will elaborate more, that we have undertaken a number of cost efficiency efforts this year to streamline and focus our business practices. This includes new software tools Dan referenced to help us manage resources and sales more effectively, engage in better planning, in inventory control, and other corporate functions. We have also streamlined our headcount and implemented efficiencies in our construction functions to improve operating results. The first and second quarter largely saw the cost of implementing those solutions, driving costs a bit higher, while the second half will show the benefits. All in, we have identified about $1.9 million in operating cost benefits on an annualized run rate basis, net of a few hires and other add backs. As such, and coupled with increased construction and steadily growing billing unit counts, we expect our operating results and net loss should improve over the second half of this year and continue to do so into 2027. And with that, I will hand it over to James to briefly recap some of our business highlights from the quarter and year to date. James? James Di Bartolo: Thank you, Barry. Today, I'll walk through a few of the financial highlights of our second quarter 2026. Revenue for the second quarter decreased 46%, or $2.5 million to $2.9 million year-over-year, reflecting the timing of client construction and installation project revenues, which are periodic and variable in nature. For the six months ended June 30, 2026, total revenue decreased 32.4%, or $3.5 million to $7.3 million compared to the 6 months ended June 30 in 2025, also due to the timing on new construction projects. New construction in 2026 is weighted to the second half, and the company anticipates an uptick in both construction revenue and recurring services revenue from its growing base of billed units in the balance of the year. Cost of revenue decreased to $2.4 million for the second quarter, compared to $4.5 million for the prior year period. Gross profit was $0.4 million for the second quarter, decreased from $0.8 million for the prior year period, reflecting the short-term decline in construction revenue. Gross margin increased to 15.5% in the second quarter, compared to 15.1% in the prior year quarter. We have also implemented cost reduction actions intended to further improve our network construction gross margin back into our expected range of approximately 20%, and hold our recurring services margins in a range of 10%-15%, depending on MSP, NaaS, and other factors. Operating expenses were $3.5 million for the second quarter, compared to $1.5 million for the prior year period. The increase reflects our overall increased scale and new listing as a public company on NASDAQ in November 2025, as well as the added investment in our sales and marketing organization and costs associated with our long-term cost reduction initiatives, as Barry just described. We anticipate an annualized run rate of about $1.9 million in total OpEx reductions going forward. We reported an operating loss of $3.1 million for the second quarter, compared to an operating loss of $0.7 million for the prior year period. Net loss was $3.1 million, compared to $0.9 million for the second quarter last year, driven by our investment in our sales and marketing teams, as well as public company related expenses. Adjusted EBITDA in the second quarter was a loss of $3 million, compared to a loss of $0.7 million in the prior year quarter. The balance sheet remains strong, with cash and cash equivalents at $1.2 million, plus accounts receivable of $3.6 million, and inventories of $2.9 million. Deferred revenue was $5.3 million, and we have contracted backlog of new installations and long-lived recurring service revenues of more than $38.9 million, compared to $35.9 million as of June 30, 2025. With that, I'll turn it back to Dan. Daniel McDonough: Thanks, James. A few final comments before moving into Q&A. 2026 has been a year of investing in growth and the future of our business. We've made substantial gains in unit counts, which will generate long-term recurring service revenue and continue to win more awards to further our growth activity. The most important metric is contracted units, which has grown 33% year-over-year and has us on track to exceed 50,000 units by year-end. We believe this metric drives all of our other KPIs and is a key leading indicator of our continued performance. We've tested and refined our sales strategy, focusing on key high-density markets and broadening our reach within large property managers who can award dozens of properties and thousands of units in incremental growth over the years to come. We're also making investments into our organization to create a more efficient organization with better tools and resources to support this growth. These bring the short-term costs, but we believe the gains are already beginning to materialize in the second half of this year and we'll have an even larger benefit as we continue to scale the business. We are excited for the second half and our continued execution to build Elauwit's leading position in our industry and sharing our progress on additional property awards and progress in these efforts. With that, I'd like to ask the operator to open the call for questions. Operator: [Operator Instructions] And the first question will come from Derek Greenberg with Maxim Group. Derek Greenberg: My first question is just on the sales team and the ramping of that. I was wondering if you could maybe talk about their progress year-to-date, if you think they're kind of fully ramped and ready to sell or if you think there's still some lag time there? And then two, if you expect any incremental investments in the sales team for the second half? Daniel McDonough: Yes. Thanks for that question, Derek. Thanks for joining the call, too. I think the broadest way I could say is we talked about this quite a bit in our roadshow that we wanted to really make a big investment coming out of the gates into sales to figure out what works, what doesn't work and really test the market. I think even in certain times, I've referenced it as like almost an R&D kind of approach to sales. And we gained a lot of insight. We stood up systems and processes and gained a lot of insight. And over the last 30, 45 days, we've really refined the process going from a shotgun approach to more of a rifle approach in the areas that we see -- we think we can really win. So I see our sales expense actually going down because in the beginning, we spent a lot to try to figure out what's the best approach to scale this. And now we're sort of in Phase 2 of the sales process. So I would see us pulling back the expense in sales over the short term, but still getting a lot of velocity. And then as we scale that velocity, adding more sales expense back in. Derek Greenberg: Okay. Great. That's really helpful. And then I was wondering on both just the contracted units coming in as well as the pipeline. I was wondering maybe if you could talk a little bit about the mix between existing customer portfolios you're converting versus new logos? Daniel McDonough: Yes. We are seeing an uptick in conversions. It's as opposed to new construction. The good part about that is it speeds up our process from the time of contracting to seeing revenue and seeing profits from it. On the NaaS, in terms of like what part of that is Network as a Service versus managed WiFi side, we're also seeing an uptick, not quite as big uptick in getting into existing properties, but still we're seeing a small increase in that piece of our market share. Derek Greenberg: Okay. Got it. And then last one for me. I was wondering if there is any commentary on like supply chain or tariff impacts, if there's any issues there, if you're pretty resilient on that front? Daniel McDonough: I'm certain we're pretty resilient on that front. But James, I don't know if you have anything to add there? James Di Bartolo: We have not encountered any significant supply chain disruptions over the quarter as a result of tariffs. Operator: The next question will come from George Sutton with Craig-Hallum. George Sutton: Dan, I wondered if you can give us a little more of a view on the slow construction in Q2 and then the ramp that you expect. I know a lot more of this is managed services sometimes out of your ability to time. But if you can just kind of walk us through what you're seeing in front of you relative to what we saw in Q2? And are you hitting your construction time lines as part of this? Daniel McDonough: George, thanks for joining the call, and thanks for that question. It is a funny one. When we talk about backlog, a lot of times companies are talking about their operational inability to fulfill. That is not the case with us. In our instance, and I think it's funny, you mentioned we have limited control over it. We have almost no control over the construction side of this business because, of course, we're sequenced in with the general contractor on these new developments. Operator: Pardon me, Mr. Sutton, are you muted? George Sutton: Yes, I apologize. I'm not sure. I think it went into an AirPod. Barry Rubens: Yes, I think we lost you for a bit, Dan. You may want to repeat your response to George. George Sutton: Got you. Am I here? Can you hear me? Daniel McDonough: We can hear you fine now. Barry Rubens: Yes. Daniel McDonough: Yes. So George, I was just saying that in the third and fourth quarter, we have a lot more conversion of construction for us as opposed to new construction. It's a lot more predictable, and it's a lot quicker from contracting to actual revenue. So that's why we were way more bullish on Q3 and Q4 for network construction revenue versus the first half of the year, and it's way more predictable. George Sutton: Got you. I'm just wondering if we could talk about the 4,100 units from the 2 large REITs, and you mentioned hundreds of thousands of potential opportunities there in terms of units. But outside of that, I think, or perhaps inclusive, you're talking about 500 properties and 98,000 units in your pipeline. Can you just make sure we understand those 2 numbers and kind of how it flows in your opinion? Daniel McDonough: Sure. Actually, Barry, do you want to grab that since you've been chasing the team. Barry Rubens: Yes. A number of these companies are in their budgeting process, allocating properties that -- where they can get a release from the current carrier and move them over. So for most of these people, what we're looking at is large portfolios convert, it may very well be a steady stream of properties we see coming in over the next 4 or 5 years. So the process is being allocated out by these companies as they, again, free themselves from old contracts and are able to convert those properties, and that really becomes the gating factor. George Sutton: Just to be clear, when we talk the 2 large REITs and the opportunity there versus what you're talking about in your 98,000 unit pipeline, are those -- are we looking at the same numbers or are those different numbers? Barry Rubens: No. We're looking at mutually exclusive numbers. They will talk to us as we go into the third and fourth quarter about the properties they're allocating for 2027. We don't have those property names yet. So our focus is purely on execution right now, but we're well aware that these companies have future projects that they want -- that they'll be allocating to us. They are mutually exclusive numbers. George Sutton: Yes. So to be clear, there's also 500 other properties that are currently in your pipeline that you're pursuing. Barry Rubens: Correct. Unidentified at this point in time. But if we look at the size of these companies, that's a reasonable estimate. Operator: And this will conclude our question-and-answer session as well as our conference call for today. Thank you for your participation. You may now disconnect. 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Interested in Elauwit Connection, Inc.? Here are five stocks we like better. Revenue declined sharply: Second-quarter revenue fell 46% year over year to $2.9 million because construction projects were timed unevenly. Net loss widened to $3.1 million, while operating expenses rose to $3.5 million. Underlying unit growth remained strong: Contracted units increased 33% year over year to 42,687, while activated units rose 94% and billed units jumped 163%. Management expects to exceed 50,000 contracted units by year-end. Backlog and efficiency initiatives support the outlook: Contracted backlog reached $38.9 million, and the company identified approximately $1.9 million in annualized operating-cost benefits. Management expects improved results in the second half of 2026 as construction activity, conversions and recurring billed revenue increase. Elauwit Connection (NASDAQ:ELWT) reported second-quarter results marked by lower revenue tied to the timing of construction projects, while management highlighted growth in contracted, activated and billed units as indicators of future recurring service revenue. Second-quarter revenue fell 46% year over year, or $2.5 million, to $2.9 million. Chief Financial Officer James Di Bartolo said the decline reflected the periodic and variable nature of client construction and installation projects. For the first six months of 2026, revenue decreased 32.4%, or $3.5 million, to $7.3 million, also due to the timing of new construction work. → AMG’s Alternatives Boom Powers Record Growth Management said construction activity is weighted toward the second half of 2026. Executive Chairman Dan McDonough said the company expects its quarterly revenue profile to become less uneven over time as construction work is distributed more evenly and recurring services account for a larger share of total revenue. McDonough said Elauwit added nearly 5,900 contracted units across 21 properties during the second quarter, representing a 16% sequential increase and 33% year-over-year growth. The company signed more than 10,000 units during the first half of the year, he said. → Microsoft's Maia 300 Chip Targets NVIDIA's AI Dominance As of June 30, Elauwit had 42,687 contracted units, up 33% from 32,094 a year earlier. Chief Executive Officer Barry Rubens said activated units increased 94% year over year to 27,134, while billed units rose 163% to 22,967. Contracted units: 42,687 as of June 30, up 33% year over year. Activated units: 27,134, up 94% year over year. Billed units: 22,967, up 163% year over year. Rubens described contracted units as properties awaiting construction or installation, activated units as installed properties that may still be in an onboarding period, and billed units as those fully generating recurring revenue under managed services or Network as a Service, or NaaS, agreements. → The Metals Company’s Big Bet Now Comes Down to a License He said activated properties generally move through a 12-month rollover period following installation, with costs onboarded in line with property lease renewals. Management views the progression from contracted to activated to billed units as a leading indicator for revenue growth over the next six to 24 months. McDonough said the company had nearly 43,000 units under contract at June 30 and expects to exceed 50,000 contracted units by year-end. That outcome would represent an annualized increase of more than 46% for 2026, according to the company. Elauwit also reported more than $38.9 million in contracted backlog for new installations and long-lived recurring service revenue, compared with $35.9 million a year earlier. Rubens said the company had 16,000 units committed either in writing or verbally through June 30, spanning 57 properties and 21 ownership groups, for installation during the rest of 2026 and 2027. Its tracked sales pipeline includes more than 500 properties and 98,000 units. Cost of revenue declined to $2.4 million in the second quarter from $4.5 million a year earlier. Gross profit fell to $0.4 million from $0.8 million, but gross margin improved slightly to 15.5% from 15.1%. Di Bartolo said the company has implemented actions intended to improve network construction gross margin toward an expected range of approximately 20%. It expects recurring services margins to remain in a range of 10% to 15%, depending on the mix of managed service provider, NaaS and other business factors. Operating expenses increased to $3.5 million from $1.5 million a year earlier. The company attributed the increase to its larger scale, expenses associated with its Nasdaq listing in November 2025, sales and marketing investments, and costs related to efficiency initiatives. Elauwit reported an operating loss of $3.1 million, compared with an operating loss of $0.7 million in the prior-year quarter. Net loss widened to $3.1 million from $0.9 million, while adjusted EBITDA was a loss of $3 million, compared with a loss of $0.7 million a year earlier. At quarter-end, the company held $1.2 million in cash and cash equivalents, along with $3.6 million in accounts receivable and $2.9 million in inventory. Deferred revenue totaled $5.3 million. Management said it has invested in business intelligence tools, enterprise resource planning and inventory platforms, software integrations, network operations, account management and automation. Rubens said Elauwit has identified about $1.9 million in annualized operating-cost benefits, net of certain hires and other additions. The first and second quarters included costs to implement those measures, Rubens said, while the company expects benefits to be more visible in the second half. Management said it expects operating results and net loss to improve during the remainder of 2026 and into 2027, supported by cost reductions, construction activity and growth in billed units. During the question-and-answer session, McDonough said Elauwit has refined its sales strategy after expanding its team and testing multiple approaches during the first half. He said sales spending is expected to decline in the near term as the company focuses on the approaches it believes can generate results, with additional investment potentially returning as sales velocity increases. McDonough also said the company is seeing more conversion opportunities at existing properties rather than new construction. He said conversions can shorten the period between contracting and revenue generation. Elauwit expects third- and fourth-quarter construction revenue to benefit from a greater share of conversion work, which management characterized as faster and more predictable than new construction projects. Rubens said future opportunities from two large multifamily property real estate investment trusts are separate from the company’s 98,000-unit pipeline. He said those owners may allocate properties to Elauwit over the coming four to five years as existing carrier contracts expire or properties become eligible for conversion. Di Bartolo added that the company had not encountered significant supply-chain disruptions during the quarter as a result of tariffs. We are a provider of broadband Internet networks for the multifamily and student housing property sector. We provide Managed Services and Network-as-a-Service solutions designed to modernize and enhance the Internet connectivity experience for residents while driving significant financial benefits for property owners. We strive to be a leading player in a booming multifamily property conversion trend through service commitment, operational experience and flexibility. Key highlights of our business and market opportunity include: · There is an untapped market to fulfill major demand for network services in multifamily housing units: o According to market estimates from the National Multifamily Housing Council (NMHC), there are approximately 23 million apartment units in the U.S, and we estimate 55% of those units are well-suited for our network services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Elauwit Connection Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Activated Units Increased 94%, Billed Units Increased 163 % Year-Over-YearProgress Reflects 37 Properties and more than 10,000 New Units Signed Year-to-Date10 New Properties Signed as Growth Continues in Third Quarter Columbia, South Carolina--(Newsfile Corp. - August 18, 2026) - Elauwit Connection, Inc. (NASDAQ: ELWT) ("Elauwit," the "Company," "we," or "our"), a national managed services provider of turnkey broadband and property-wide WiFi networks serving multifamily, student housing, and senior living communities, today reported financial results for the second quarter ended June 30, 2026. "The second quarter of 2026 was Elauwit's best-ever quarter-over-quarter and year-over-year increase in contracted units, signing almost 5,900 units across 21 properties in 10 states and the District of Columbia. These wins will drive significant construction activity in the second half of 2026 and a substantial expansion of our recurring service revenue under long-lived contracts as they come online later this year and throughout 2027. Year-to-date, we have signed more than 10,000 units, and the momentum continues into the September quarter with already multiple new property awards," said Dan McDonough, Executive Chairman. "This growth demonstrates that our sales focus on large, multi-property operators can generate significant repeat awards across an owner's portfolio. For example, we recently announced major wins with two large REIT owners, contracting more than 4,100 units across 14 properties and five states. These two operators plan to roll out managed services across their portfolios, which include hundreds of thousands of units of additional opportunity, and our sales pipeline has a number of similarly sized opportunities. "Given this confirmation that large portfolios are rapidly converting properties to managed services, we are sharpening our sales focus on key markets where we have higher density. This also enables increased attention to smaller and middle-tier property owners in those markets for our Network-as-a-Service ("NaaS") product while doing so with greater operating efficiency. "In summary, the well-documented message that choosing Elauwit's managed services solutions can secure increased revenue, higher valuations, and more satisfied residents is resonating with owners and driving deals to closing, affirming our position that contracted units are the most important KPI in our business and best indicator or our future performance. We now have almost 43,000 units under contract and expect to exceed 50,000 units under contract before year end, achieving what would be a more than 46% annualized increase in contracted units for 2026. These wins will drive both construction revenue and long-term recurring service revenue as we seek to build a robust and durable business at Elauwit." Elauwit generates revenue in three contracted stages from each property win: first, upfront construction revenue and margin from the installation project, which is variable quarter to quarter; second, predictable and steady services revenue growth over the first year of its multi-year agreements as it converts installed units to billed units; and finally, multiple years of expected stable, recurring service revenue from a long-term managed services agreement. To support its growth, the Company continues to invest in new enterprise resource planning and inventory platforms to drive greater visibility and cost control across its business. Elauwit anticipates the first operating cost and margin benefits of these investments will begin to show in the third and fourth quarters of this year, as it focuses on increased cost-efficiency. Financial and Operating Highlights (unaudited) Total revenue for the second quarter decreased 46%, or $2.5 million, to $2.9 million, year-over-year, reflecting the timing of client construction and installation project revenues, which are periodic and variable in nature, offset in part by increased contribution from billed units under the Company's long-lived services contracts. New construction in 2026 is anticipated to be weighted to the second half of the year, and the Company anticipates an uptick in both construction revenue and recurring service revenue due to its growing base of activated and billed units over the balance of 2026. Activated units increased 94% and billed units increased 163% year over year at the end of the second quarter, driving increased recurring service revenue under long-lived managed service and NaaS. In July 2026, the Company announced contract awards for more than 4,100 units across 14 properties with two large multi-family property REIT owners. Backlog as of June 30, 2026 was $38.9 million, compared to $36 million as of June 30, 2025. Backlog is comprised of new properties contracted for planned installation and the value of recurring service revenue on activated or billed units. "The change in quarterly revenue reflected the timing of large construction projects to install networks into contracted properties, which are variable and weighted to the second half during 2026," said James Di Bartolo, Chief Financial Officer. "Our continued contracting activity is driving new projects that will generate both increased construction activity and growing revenue from billed units as we progress through the year, keeping us on track to achieve our targeted performance metrics. Additionally, we anticipate beginning to see the benefit of our cost efficiency initiatives in the second half of the year as we work to optimize our profitability as we scale the business." Balance Sheet As of June 30, 2026: Cash and cash equivalents totaled $1.2 million. Accounts receivable were $3.6 million, and inventories were $2.9 million. Deferred revenue was $5.3 million. Related party debt was $1.6 million, and total debt was $2.2 million. Conference Call Elauwit's management will host a live webcast conference call today at 8:00 a.m. Eastern Time to discuss the financial results and provide business updates on the Company's strategic plans. To access the live webcast, conference call information, and other materials, please visit Elauwit's investor relations website at http://investors.elauwit.com/. Please connect at least 10 minutes prior to the live webcast to ensure adequate time for any software download that may be needed to access the webcast. For those wishing to join by telephone only, please dial +1-412-345-1653. A webcast replay of the call will be available following the call on Elauwit's investor relations website. Quarterly Report on Form 10-Q ("Form 10-Q") Elauwit's Form 10-Q for the second quarter 2026 will be available when filed at https://investors.elauwit.com. This press release should be read in conjunction with the Form 10-Q and the related Notes to Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in that Form 10-Q. About Elauwit Elauwit is a publicly traded connectivity MSP dedicated to rental communities, including multifamily properties, student housing, and senior living. Elauwit designs, builds, and operates managed networks, backed by a service model that treats property teams and residents like a relationship, not an account number. With dependable connections, exceptional resident support, and no-upfront-cost options, Elauwit helps owners deliver premium connectivity as a competitive advantage, supporting new revenue, resident retention and increased asset value. For more information, visit www.elauwit.com. Non-GAAP Financial Measures In addition to net loss, which is a U.S. GAAP measure, Elauwit presents adjusted EBITDA, which is a non-GAAP measure. Management believes the presentation of adjusted EBITDA, reflecting non-GAAP adjustments, provides important supplemental information to investors and other users of its financial statements in evaluating the operating results of the Company. In particular, by excluding expenses that are not directly related to its operating performance, Elauwit is able to present a view of its underlying business that the management team uses to analyze its historical performance and plan for its future performance. Adjusted EBITDA is a key metric used by management and the Board of Directors to assess the Company's financial and operating performance. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for net loss determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Key Performance Indicators Elauwit uses the following key performance metrics to analyze and measure the Company's financial performance and results of operations: recurring service revenue, contracted units, activated units, billed units and backlog. The Company's recurring service revenue, contracted units, activated units, billed units and backlog are not necessarily comparable to similarly titled measures reported by other companies. Elauwit defines recurring service revenue as the monthly recurring service revenue initiated by network activation under our long-term service agreements. Management believes that the Company's ability to retain and expand revenue from existing customers is an indicator of the long-term value of its customer relationships and potential future business opportunities. Elauwit defines contracted units as the total number of individual units waiting to be built or in the process of being installed across the properties using its networks. Management believes this metric is useful to investors because it illustrates the total number of units the Company will serve once the construction process is complete. Elauwit defines activated units as the total number of individual units that are fully installed and on, but not yet necessarily collecting full recurring service revenue due to onboarding process, across the properties using its networks. Management believes this metric is useful for investors because it illustrates the total number of individual units the Company will collect revenue on once the onboarding process is complete, and can be tracked over time to show the reach of its networks. Elauwit defines billed units as the total number of individual units that it is currently collecting revenue on across the properties using its networks. Management believes this metric is useful to investors because it illustrates the total number of individual units the Company collects revenue on and can be tracked over time to show the reach of its networks. Management believes it is more useful to compare total billed units as opposed to total customers or total subscribers because the Company's revenue is more closely tied to the number of units it serves than the total number of customers or subscribers. Backlog is defined as the aggregate amount of a contract price allocated to remaining performance obligations. Total backlog can include network design and installation performance obligations and internet network services and hardware and internet services performance obligations. Management believes tracking backlog is useful to investors because it illustrates the remaining performance obligations under our contracts and the revenue we expect to recognize in the future. Forward-Looking Statements This press release contains forward-looking statements, including with respect to the Company's future financial results, the Company's growth strategies and pipeline, and its performance as a public company. The words "anticipate," "believe," "can," "continue," "estimate," "expect," "future," "may," "opportunity," "plan," "potential," "predict," "seek," "will," "would," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including market and other conditions and the Company's ability to improve its financial performance and achieve its growth objectives, and other factors set forth in the Company's filings with the SEC, including the Company's annual report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 31, 2026, and subsequent quarterly reports on Form 10-Q. Actual results might differ materially from those explicit or implicit in the forward-looking statements. The Company undertakes no obligation to update any such forward-looking statements after the date hereof to conform to actual results or changes in expectations, except as required by law. Contacts: Investor Relations:Darrow AssociatesMatt Kreps, Managing [email protected] Media:Elauwit Connection, Inc.Katie Hayward, VP [email protected] ELAUWIT CONNECTION, INC.Unaudited Condensed Balance Sheets(in thousands, except share and par value data) ELAUWIT CONNECTION, INC.Unaudited Condensed Statements of Operations(in thousands, except share and par value data) ELAUWIT CONNECTION, INC.Reconciliation from Net Loss to Adjusted EBITDA(in thousands, except share and per value data)(UNAUDITED) ​ Depreciation and amortization was nil for the three and six months ended June 30, 2026 and 2025. 1 Adjusted earnings before interest (income) expense, income taxes, depreciation and amortization ("EBITDA") is not a U.S. generally accepted accounting principle ("GAAP") measure. Please refer to the "Non-GAAP Financial Measures" section of this earnings release for a discussion of this non-GAAP measure and the schedules attached to this earnings release for a reconciliation of adjusted EBITDA to net loss. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/310213

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record quarterly growth in contracted units, which management identifies as the primary KPI driving long-term recurring service revenue and future construction activity. Attributed the short-term revenue decline to the 'lumpy' nature of construction contract timing, noting that these projects are not evenly distributed throughout the year. Shifted sales strategy from a broad 'shotgun' approach to a 'rifle' approach, prioritizing high-density markets and large property owners to improve installation efficiency. Implemented a 'land and expand' strategy with national REITs, leveraging successful initial deployments to capture larger portions of their total portfolios. Invested in a next-generation ERP and AI-driven tools to integrate vendor platforms, aiming to accelerate root cause analysis and proactive service resolution. Restructured the project management office into specialized 'pods' to pair senior managers with on-site construction staff for better stakeholder reporting. Maintained a 'win-win-win' model that integrates property owners into the monthly recurring revenue stream, increasing property value while lowering resident costs. Anticipates exceeding 50,000 units under contract by year-end 2026, representing a projected 46% annualized increase in contracted units. Expects a significant uptick in construction revenue during the second half of 2026 due to a higher concentration of scheduled projects compared to the first half. Projects an annualized operating expense reduction of approximately $1.9 million as the benefits of new software tools and streamlined headcount materialize. Assumes a steady 12-month growth arc for activated units following installation, during which costs are onboarded pro rata to align with property lease renewals as units convert to being fully billed. Targets a return of network construction gross margins to a range of approximately 20% through implemented cost reduction actions. Identified $1.9 million in annualized operating cost benefits resulting from streamlined headcount and improved construction functions. Noted that current operating losses were driven by one-time costs associated with implementing new business intelligence systems and public company compliance. Highlighted a contracted backlog of $38.9 million in new installations and long-lived recurring service revenues as of June 30, 2026. Confirmed resilience against supply chain disruptions, stating that tariffs have not had a significant impact on the quarter's results. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management described the initial sales investment as an 'R&D approach' to identify effective strategies, which has now been refined into a more targeted process. Expects sales expenses to decrease in the short term as the company moves into 'Phase 2' of its sales process, focusing on velocity over broad spending. Reported an uptick in conversions of existing properties versus new construction, which accelerates the timeline from contracting to revenue and profit. Noted a smaller but increasing uptick in market share for the Network as a Service (NaaS) model within existing properties. Clarified that the company has 'almost no control' over new construction timing as they are sequenced with third-party general contractors. Stated that the second half of the year is more predictable because it involves more property conversions, which Elauwit can control more effectively than new builds. Confirmed that the 98,000 units in the tracking pipeline are mutually exclusive from the hundreds of thousands of potential units within existing REIT partnerships. Explained that REIT property allocations are often gated by the expiration of legacy carrier contracts, creating a steady multi-year stream of new property awards.

Conference Call and Dial-In Details Unchanged; Results Now to be Released Before Market Open on Tuesday, August 18, 2026 Columbia, South Carolina--(Newsfile Corp. - August 13, 2026) - Elauwit Connection, Inc. (NASDAQ: ELWT) ("Elauwit" or the "Company"), a national managed services provider of turnkey broadband and property-wide WiFi networks serving multifamily, student housing, and senior living communities, today announced that it will file a Notification of Late Filing on Form NT 10-Q (the "Form NT 10-Q") with the U.S. Securities and Exchange Commission (the "SEC") under Rule 12b-25 of the Securities Exchange Act of 1934, as amended, to extend the filing deadline for its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 (the "Form 10-Q"). The Company requires additional time to complete its review and finalization of the unaudited financial statements for the quarter and therefore will not file the Form 10-Q by its original due date of Friday, August 14, 2026. As a result, Elauwit will reschedule the release of its second quarter 2026 financial results and related conference call, both of which were previously scheduled for Friday, August 14, 2026, to Tuesday, August 18, 2026, before market open. The Company expects to file the Form 10-Q within the five-calendar-day extension period permitted under Rule 12b-25. Conference Call Elauwit's management will host a live webcast conference call at 8:00 a.m. Eastern Time on Tuesday, August 18, 2026 — the same time previously announced for the Company's second quarter 2026 results call — to discuss the financial results and provide business updates on the Company's strategic plans. To access the live webcast, conference call information, and other materials, please visit Elauwit's investor relations website at http://investors.elauwit.com/. Please connect at least 10 minutes prior to the live webcast to ensure adequate time for any software download that may be needed to access the webcast. For those wishing to join by telephone only, please dial +1-412-345-1653, the same dial-in number previously provided for the call. A webcast replay of the call will be available following the call on Elauwit's investor relations website. About Elauwit Elauwit is a publicly traded connectivity MSP dedicated to rental communities, including multifamily properties, student housing, and senior living. Elauwit designs, builds, and operates managed networks, backed by a service model that treats property teams and residents like a relationship, not an account number. With dependable connections, exceptional resident support, and no-upfront-cost options, Elauwit helps owners deliver premium connectivity as a competitive advantage, supporting new revenue, resident retention and increased asset value. For more information, visit www.elauwit.com. Forward-Looking Statements This press release contains forward-looking statements, including with respect to the timing of the filing of the Company's Form NT 10-Q and Form 10-Q, the timing of the release of its second quarter 2026 financial results and related conference call, and its performance as a public company. The words "expect," "future," "strategy," "will," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including market and other conditions, the timing of the Company's completion of its financial statement review, and other factors set forth in the Company's filings with the SEC, including the Company's annual report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 31, 2026, and subsequent quarterly reports on Form 10-Q. Actual results might differ materially from those explicit or implicit in the forward-looking statements. The Company undertakes no obligation to update any such forward-looking statements after the date hereof to conform to actual results or changes in expectations, except as required by law. Contacts Investor Relations: Darrow Associates, Matt Kreps, Managing Director, +1-214-597-8200, [email protected] Media: Elauwit Connection, Inc., Katie Hayward, VP Marketing, +1-704-558-3099, [email protected] To view the source version of this press release, please visit https://www.newsfilecorp.com/release/309591

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the 19% year-over-year revenue decline to the inherent lumpiness of construction contract timing, rather than a shift in underlying demand. The company is transitioning from a scale-constrained private entity to a public platform capable of addressing the 70% of the market previously inaccessible without the Network-as-a-Service (NaaS) model. Strategic focus is shifting toward high-margin recurring revenue, evidenced by a 115% increase in billed units and a 110% increase in activated units year-over-year. The sales strategy prioritizes property management groups with large portfolios to facilitate a 'land and expand' approach, where initial successful execution leads to bidding on additional properties. Operational investments are focused on a 'win-win-win' framework that integrates property owners into the revenue chain, creating value for owners, residents, and Elauwit simultaneously. Management is utilizing an AI-enabled marketing stack and persona-driven channels to personalize outreach across an addressable base of approximately 12 million units. The company maintains its full-year 2026 construction revenue forecast, expecting significantly stronger performance in Q3 and Q4 as project milestones are reached. Management expects to double speed-to-market by streamlining project kickoff phases to under 14 days through a restructured Project Management Office. The subcontractor network is being expanded fivefold to maintain agile deployment capabilities across the Lower 48 states. Guidance assumes a 12-month ramp-up period for activated units to become fully billed units, aligning with property lease renewal cycles. Future margin stabilization is expected as the company moves past the initial phase of absorbing fixed bandwidth costs for newly activated properties. Operating expenses increased to $3 million from $1.6 million, reflecting planned investments in sales expansion and the structural costs of being a NASDAQ-listed company. Management identified and implemented SG&A efficiencies within the network construction group, with the financial impact expected to materialize starting in Q2 2026. The NaaS pipeline is currently smaller than initially expected as property owners show a continued preference for carrying infrastructure on their own balance sheets via managed services. Contracted backlog has expanded to more than $38 million, providing increased visibility into long-term recurring revenue streams compared to $15.6 million in the prior year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects a portion of these units to go live and become 'activated' within 2026, with the remainder shifting to 2027. The units follow a standard 12-month billing ramp-up period typical of Elauwit's long-term contracts. The company targets owners with multiple properties, aiming to win available units first and then capture the rest of the portfolio as legacy contracts expire. Management emphasized that 'safe' execution is the primary driver for COOs and CFOs when choosing to move an entire portfolio to Elauwit. Margins are expected to return to the 15% range for network construction following the implementation of real-time project performance tracking software. Lumpiness in margins is partly due to fixed circuit and bandwidth costs being recognized upfront while service revenue ramps over time. The pipeline currently skews more toward managed services than originally anticipated, which management views positively as it reduces immediate capital intensity. NaaS is expected to see higher penetration among smaller developers and retrofit opportunities later this year.

Billed Units Increase 114% Year-Over-Year New Sales Team Driving Expanded Sales Opportunities, ~40 Verbal Awards to Date in 2026 Columbia, South Carolina--(Newsfile Corp. - May 14, 2026) - Elauwit Connection, Inc. (NASDAQ: ELWT) ("Elauwit," the "Company," "we," or "our"), a national managed services provider of turnkey broadband and property-wide WiFi networks serving multifamily, student housing, and senior living communities, today reported financial results for the first quarter ended March 31, 2026. Said Dan McDonough, Executive Chairman, "Elauwit is delivering on its 2026 growth plans as we ramp our sales team, drive recurring service revenue and execute on our sales pipeline to bring new properties to our platform. Our new sales organization, established in the first quarter, has secured verbal awards on approximately 40 new properties already this year, representing more than 11,000 units across 14 different ownership groups, plus a robust pipeline of additional opportunities with these ownership groups and others. We believe it is increasingly clear that property owners are choosing Elauwit to secure increased revenue, higher valuations, and happier tenants by bundling our service into their property offering. "Our success from these wins comes in two stages. First, for our managed services contracts, which remain the bulk of our deployments, we secure upfront construction revenue and margin from the installation project. Second, because we activate new customer units under both our managed services and network-as-a service ("NaaS") models into billing over the first year of our multi-year services agreements, every new project will create predictable revenue growth over its first 12 months post installation, followed by multiple years of steady, long-lived recurring service revenue streams. "Underlying our sales and onboarding success, we are also investing in new enterprise resource planning and inventory platforms to drive even greater visibility and cost control in our business as we scale. We believe these tools, combined with rigorous focus on process optimization and an expanded field network of subcontractors supporting new property installations position Elauwit even better for continued growth with property owners across the country. "Based on our expanded sales efforts, we believe it is increasingly clear that the industry is coming to know Elauwit's win-win-win scenario: a better connectivity experience for residents, improved revenue share and value to property owners, and profitable growth for Elauwit. With a $25 billion addressable market, proven implementation for both existing and new construction, and a compelling financial benefit, we believe we are well positioned for growth over the next several years." Financial and Operating Highlights (unaudited) Total revenue decreased 19% year-over-year, reflecting the timing of certain client construction and installation project revenues, which are periodic and variable in nature. Billed units increased more than 114% year over year, driving increased recurring service revenue under long-lived managed service and NaaS revenues. Elauwit fully launched its comprehensive sales team and marketing programs during the first quarter of 2026. The new sales team has rapidly expanded bidding activity with properties across the continental U.S., delivering verbal awards with 14 different ownership groups for 40 additional properties accounting for more than 11,000 units across 16 states plus the District of Columbia. Backlog as of March 31, 2026 was $38.1 million, compared to $15.6 million as of March 31, 2025. Backlog is comprised of new properties contracted for planned installation and the value of recurring services revenue on activated or billed units. Balance Sheet As of March 31, 2026: Cash and cash equivalents totaled $3.5 million. Accounts receivable were $3.2 million, and inventories were $1.0 million. Deferred revenue was $3.8 million. Related party debt at March 31, 2026 was $1.2 million, and total debt was $1.9 million. Conference Call Elauwit's management will host a live webcast conference call today at 8:00 a.m. Eastern Time to discuss the financial results and provide business updates on the Company's strategic plans. To access the live webcast, conference call information, and other materials, please visit Elauwit's investor relations website at http://investors.elauwit.com/. Please connect at least 10 minutes prior to the live webcast to ensure adequate time for any software download that may be needed to access the webcast. For those wishing to join by telephone only, please dial +1-412-345-1653. A webcast replay of the call will be available following the call on Elauwit's investor relations website. Quarterly Report on Form 10-Q ("Form 10-Q") Elauwit anticipates filing its Form 10-Q for the first quarter 2026 within the next couple of business days, which will be available at https://investors.elauwit.com. This press release should be read in conjunction with the Form 10-Q and the related Notes to Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in that Form 10-Q. About Elauwit Elauwit is a publicly traded connectivity MSP dedicated to rental communities, including multifamily properties, student housing, and senior living. Elauwit designs, builds, and operates managed networks, backed by a service model that treats property teams and residents like a relationship, not an account number. With dependable connections, exceptional resident support, and no-upfront-cost options, Elauwit helps owners deliver premium connectivity as a competitive advantage, supporting new revenue, resident retention and increased asset value. For more information, visit www.elauwit.com. Non-GAAP Financial Measures In addition to net loss, which is a U.S. GAAP measure, Elauwit presents adjusted EBITDA, which is a non-GAAP measure. Management believes the presentation of adjusted EBITDA, reflecting non-GAAP adjustments, provides important supplemental information to investors and other users of its financial statements in evaluating the operating results of the Company. In particular, by excluding expenses that are not directly related to its operating performance, Elauwit is able to present a view of its underlying business that the management team uses to analyze its historical performance and plan for its future performance. Adjusted EBITDA is a key metric used by management and the Board of Directors to assess the Company's financial and operating performance. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for net loss determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Key Performance Indicators Elauwit uses the following key performance metrics to analyze and measure the Company's financial performance and results of operations: recurring service revenue, contracted units, activated units, billed units and backlog. The Company's recurring service revenue, contracted units, activated units, billed units and backlog are not necessarily comparable to similarly titled measures reported by other companies. Elauwit defines recurring service revenue as the monthly recurring service revenue initiated by network activation under our long-term service agreements. Management believes that the Company's ability to retain and expand revenue from existing customers is an indicator of the long-term value of its customer relationships and potential future business opportunities. Elauwit defines contracted units as the total number of individual units waiting to be built or in the process of being installed across the properties using its networks. Management believes this metric is useful to investors because it illustrates the total number of units the Company will serve once the construction process is complete. Elauwit defines activated units as the total number of individual units that are fully installed and on, but not yet necessarily collecting full recurring service revenue due to onboarding process, across the properties using its networks. Management believes this metric is useful for investors because it illustrates the total number of individual units the Company will collect revenue on once the onboarding process is complete, and can be tracked over time to show the reach of its networks. Elauwit defines billed units as the total number of individual units that it is currently collecting revenue on across the properties using its networks. Management believes this metric is useful to investors because it illustrates the total number of individual units the Company collects revenue on and can be tracked over time to show the reach of its networks. Management believes it is more useful to compare total billed units as opposed to total customers or total subscribers because the Company's revenue is more closely tied to the number of units it serves than the total number of customers or subscribers. Backlog is defined as the aggregate amount of a contract price allocated to remaining performance obligations. Total backlog can include network design and installation performance obligations and internet network services and hardware and internet services performance obligations. Management believes tracking backlog is useful to investors because it illustrates the remaining performance obligations under our contracts and the revenue we expect to recognize in the future. Forward-Looking Statements This press release contains forward-looking statements, including with respect to the Company's future financial results, the Company's growth strategies and pipeline, and its performance as a public company. The words "anticipate," "believe," "can," "continue," "future," "opportunity," "potential," "predict," "will," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including market and other conditions and the Company's ability to improve its financial performance and achieve its growth objectives, and other factors set forth in the Company's filings with the SEC, including the Company's annual report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 31, 2026, and subsequent quarterly reports on Form 10-Q. Actual results might differ materially from those explicit or implicit in the forward-looking statements. The Company undertakes no obligation to update any such forward-looking statements after the date hereof to conform to actual results or changes in expectations, except as required by law. Contacts: Investor Relations: Darrow Associates Matt Kreps, Managing Director +1-214-597-8200 [email protected] Media: Elauwit Connection, Inc. Katie Hayward, VP Marketing +1-704-558-3099 [email protected] ELAUWIT CONNECTION, INC. Unaudited Condensed Consolidated Balance Sheets (in thousands, except share and par value data) ELAUWIT CONNECTION, INC. Unaudited Condensed Consolidated Statements of Operations (in thousands, except share and per value data) ELAUWIT CONNECTION, INC. Reconciliation from Net Loss to Adjusted EBITDA (in thousands, except share and per value data) (UNAUDITED) 1 Adjusted earnings before interest (income) expense, income taxes, depreciation and amortization ("EBITDA") is not a U.S. generally accepted accounting principle ("GAAP") measure. Please refer to the "Non-GAAP Financial Measures" section of this earnings release for a discussion of this non-GAAP measure and the schedules attached to this earnings release for a reconciliation of adjusted EBITDA to net loss. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/297442