OWLS

Hello everyone, and welcome to OBOOK Holdings' first half 2026 earnings conference call. OBOOK Holdings operates under the OwlTing Group brand, so throughout today's call, we will refer to the company as OwlTing. This call is prerecorded. I'm Henry Fan, Investor Relations Director, and I'll be your host today. Joining me are our Founder and Chief Executive Officer, Darren Wang, and our Chief Financial Officer, Winnie Lin. Before we begin, I would like to remind everyone that today's discussion contains forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our current expectations. For a more detailed discussion of these risks and uncertainties, please refer to our filing with the U.S. Securities and Exchange Commission. Over the past several years, we have invested in the regulatory, banking, compliance, settlement, and technology infrastructure required to support global stablecoin-enabled payments.

During the first half of 2026, we began moving from infrastructure build-out and client onboarding into live production and transaction processing. As a result, our first half financial results capture only the early stage of these commercializations, while our more recent operating data reflect a meaningfully different level of activity following the period end. I think that distinction is particularly important when evaluating the company today. The first half largely reflects the cost base and infrastructure required to prepare the platform to commercialize. The operating data we are seeing more recently begin to show what happened is that infrastructure is increasingly utilized by enterprise customers. As investors evaluate our progress from here, we believe there are several things that are more important than any single monthly data point. The first is production conversion, how quickly customers move from signed relations and integration into recurring live transaction activities.

The second is utilizations, how transaction activity grows once those customers are in production. The third is economics, how increasing utilization, a change in revenue mix ultimately translates into gross profit and operating leverage. Those are the links we believe investors should increasingly focus on as OwlPay moves from commercialized towards scales. Darren will discuss our commercial progress, post-period operating momentum, the development of our enterprise settlement network, and the long-term opportunity we see in stablecoin-enabled global payments. Winnie will then review our first half financial results and discuss how we expect the financial model to evolve as transaction volume scales. When we discuss long-term objectives today, including our 2030 revenue target and long-term margin objective, these are the strategic objectives and should not be interpreted as near-term financial guidance. With that, I will now turn the call over to our Founder and Chief Executive Officer, Darren Wang.

Darren, please go ahead.

Thank you, Henry. Hello everyone, and thank you for joining OBOOK Holdings first half 2026 earnings conference call. There is one point I want investors to understand clearly today. The OwlTing entering the second half of 2026 is at a very different stage of development from the company reflected in our first half financial statement. Over the past several years, we have invested significant time and resources in building the infrastructure required to support global enterprise payment. That includes regulatory licensing, banking connectivity, compliance, stablecoin settlement, local payout capabilities, liquidity management, and the enterprise payment orchestration technology behind OwlPay. All of these investments have one thing in common: much of the infrastructure has to be built before revenue can truly scale. During the first half of this year, I believe OwlPay crossed an important inflection point. We began moving from infrastructure build-out into commercialization.

As we enter the second half, the next stage is increasingly about one thing: scale. Today, I want to use the operating and customer activity we have seen over the past several months to explain why we are increasingly confident in that transition. I do not want investors to look at our recent operating data simply as growth in transaction volume. To me, the more important implication is the data is beginning to validate something we have spent the past several years building toward. OwlPay is evolving from a cross-border payment platform into a global enterprise settlement network. We are not simply seeing more transactions. We are seeing more enterprises move from onboarding into production. We are seeing real payment flows emerge across more markets. We are seeing additional corridors become active, and we are gradually deepening our capabilities across banking, liquidity, routing, and local settlement.

When all of these things happen together, the nature of business begins to change. The first signal is the pace of transaction activity. Let me start with one of the settlement rails within Harbor, the Circle Payments Network or CPN. CPN is an important settlement rail within Harbor's broader multi-rail architecture. It is not the entirety of Harbor volume. At the beginning of this year, our CPN activity was still at a very early pilot stage. Since then, CPN settled transaction activity has increased materially as customer and payment flows have moved into production. At the same time, transaction execution quality has improved materially as the platform has scaled. So what we are seeing is not simply higher transaction activity. We are seeing higher transaction activity together with improved execution reliability. That matters because enterprise payment infrastructure has to do both. Higher volume without reliable execution is not scalable infrastructure.

The progress we have made across compliance, transaction validation, liquidity management, and settlement operation is increasingly allowing us to support larger and more consistent enterprise transaction flows. The timing of commercialization has been shaped by the pace of enterprise activation and the progression from early pilot activity into recurring production. As the platform scales, we continue to optimize execution and we continue to view the opportunity primarily through the lens of long-term production conversion and recurring enterprise utilization. Separately, Visa Direct adds a card funding payment channel to OwlPay, giving eligible users a more convenient way to initiate and fund transactions alongside traditional bank-based channels. As we continue to expand these capabilities, we are also streamlining the KYC and onboarding experience while maintaining the required compliance standard. Based on our current progress, we believe we can begin seeing transaction activity through Visa Direct during the fourth quarter of 2026.

Over time, we believe this product improvement can make OwlPay easier to access and support broader adoption. The second signal is the expansion of enterprise demand. Our enterprise pipeline is also continuing to expand. We are seeing a growing number of enterprises move through our commercialized pipeline, with more progressing from initial engagement into signed relationship integration and onboarding. Today, we have approximately 80 signed enterprise relationships with a broader pipeline expanding well beyond that base. The composition of the demand is becoming broader as well. We are seeing opportunities from payment providers, fintech companies, digital financial infrastructure companies, financial institutions, and enterprises with cross-border treasury and settlement needs. Many of those opportunities are still progressing through sales, integration, or onboarding and are not yet production volume. They provide an important indication of the breadth of demand we are seeing.

The question we are focused on is no longer simply how many enterprise customers we can sign. The more important questions are how quickly we can move signed enterprises from onboarding into production. Once they are in production, how much of their existing payment activity can we ultimately capture? This is how we think about production conversion and wallet share. From individual corridors to a many-to-many network. The nature of customer demand is also changing. Increasingly, enterprise customers are looking for payment and settlement connectivity that spans multiple regions rather than a single origin and destination corridor. We are seeing demand across major developed and emerging markets, often from customers that need to access multiple regions through a common settlement infrastructure. Many of these opportunities remain in sales or onboarding and are not yet production volume, but taken together, they provide an important signal.

Harbor demand is no longer centered around a small number of individual cross-border routes. It is increasingly developing into a many-to-many settlement network, connecting enterprises across multiple regions and financial systems. That matters because Harbor's long-term value should not depend on any single corridor. The value increasingly comes from network connectivity itself. We are also beginning to see the same Harbor architecture operate across different banking systems, regulatory environments, and customer requirements. If all of our growth came from one customer or one corridor, we have proven one use case. Instead, we are beginning to validate a settlement architecture that can be replicated across different markets. What matters to us is not simply the current size of any individual corridor. We are looking at whether a market can become an important node in the broader OwlPay settlement network. The nature of transaction activity is increasingly enterprise-driven.

Another important indicator is the composition of payment activity itself. Within completed CPN settled volume, approximately 43% has been related to the cross-border supply chain and international trade payment. Another 37% has come from fintech institutions and digital payment providers, including treasury liquidity management, regional settlement account funding, and cross-platform fund movement. Together these categories represent close to 80% of current CPN settled transaction activity. This is important to me because it demonstrates that activity we are seeing is not primarily dependent on short-term speculation or consumer crypto trading. It is increasingly linked to real economy activity, enterprise trade, treasury management, liquidity management, and cross-border financial flows between institutions. These use cases can be recurring. A business does not pay its supplier only once. A fintech company does not rebalance treasury liquidity only once.

Once Harbor becomes integrated into an enterprise customer operating workflow, those flows can potentially recur daily, weekly, and monthly. The recurring nature is one of the most important differences between enterprise settlement infrastructure and a single payment transaction. Our site customer base is also increasingly diversified across areas such as wallet infrastructure, cross-border remittance, stablecoin payment orchestration, B2B offerings, international trade settlement, supplier payment, fintech infrastructure, and institutional treasury. This diversity can increase the utility and density of the network over time. We have demonstrated the ability to build direct settlement infrastructure. There is another capability that I believe the market may not fully appreciate. OwlPay is not simply connecting third-party payment APIs. We also have experience building and operating direct banking and settlement infrastructure. The clearest example is the U.S.. Historically, our direct U.S. banking rails have cumulatively processed more than $1.4 billion in transaction volume.

To me, that is an important proof point. It demonstrates that OwlPay has capabilities beyond orchestration. We have experience building, operating, and scaling direct financial infrastructure. The question for us today is no longer simply whether we can do this. The question is, in which market does it make the most strategic and economic sense to replicate that capability? Where we see sufficient transaction density, enterprise demand, regulatory advantage, and attractive economics, we can selectively deepen direct banking and settlement connectivity over time. That can improve settlement reliability, routing flexibility, and customer experience, and transaction economics. Importantly, when local infrastructure is established, it does not have to serve only one customer. The same banking, liquidity, and settlement infrastructure can potentially support multi-hub or enterprise customer and multiple transaction flows. That is one of the ways we believe greater network scale can ultimately create operating leverage.

Our strategy is not to build everything ourselves. Our strategy is not to build every component ourselves in every country. That would not be the most efficient use of capital. Harbor has been designed from the beginning as a multi-provider, multi-rail architecture. CPN remains an important and preferred stablecoin settlement rail for many use cases. At the same time, we integrate direct banking rails, regional banking partner, and other global payment networks. Our principle is simple: own what creates differentiation, integrate what creates reach. In markets where scale, regulation, and economics justify deeper infrastructure, we want to build greater local depth. In other markets, we will continue to partner with leading financial institutions, payment networks, and stablecoin networks. This allows OwlPay to combine two things, global reach and local depth. Japan. Japan represents an important strategic infrastructure opportunity for OwlPay.

We already have an established relationship with SBI and existing local capabilities. Over time, we believe there is a meaningful opportunity to connect Japanese fiat liquidity with global stablecoin rails and support enterprise cross-border settlement, subject to applicable commercial, technical, and regulatory requirements. Japan is a market where our local position may allow us to deepen banking, regulatory, and settlement infrastructure as stablecoin adoption develops. Taiwan. Taiwan also represents an important long-term opportunity. Taiwan is our team's home market and one of Asia's major export and technology economies, with deep commercial relationships across the U.S., Japan, Greater China, and the rest of Asia. Its position at the center of the global semiconductor and technology supply chain creates significant and recurring cross-border commercial and treasury flows.

As Taiwan's regulatory framework for digital assets and stablecoins develop, we believe there are a meaningful opportunity to connect regulated digital money within Taiwan's banking system, fiat liquidity, enterprise payment flow, and global settlement networks. For OwlPay, the opportunity is broader than stablecoin issuance itself. The larger opportunity is the infrastructure surrounding stablecoins, on and off-ramps, enterprise payment infrastructure, cross-border payments settlement local banking connectivity, and connectivity between Taiwan's financial system and global stablecoin network. Over the past several years, we have built regulatory, banking compliance, liquidity, and settlement capabilities across multiple international markets. Our objective is to bring those capabilities together within Taiwan's local financial infrastructure as the market develops. I want to be clear that we are not announcing the issuance or launch of a Taiwan stablecoin today. The regulatory and commercial framework is still developing, and timing will depend on the relevant authorities and market participants.

We believe Taiwan has the potential to become important regulated stablecoin market in Asia, and we believe OwlPay can still play a role in connecting Taiwan's enterprise economy with global stablecoin payment rail. A separate 2026 scale milestone. There is another operating metric I want to distinguish from the historical U.S. direct banking volume I mentioned earlier. Our target is for cumulative processed payment volume during 2026 across our OwlPay payment operation to exceed $1 billion by year-end. This is different metric from the more than $1.4 billion historically processed through our U.S. direct banking rails. The $1.4 billion figure demonstrates our historical experience operating direct financial infrastructure at scale. The $1 billion-plus 2026 target is a milestone for the current commercialization and scaling for our broader OwlPay payment operation. We believe these two metrics demonstrate two different but complementary points.

First, we have already demonstrated the ability to build and operate large-scale direct settlement infrastructure. Second, we are now applying the experience across broader global multi-rail OwlPay settlement network. We do not view $1 billion as an endpoint. We view it as a milestone on the path towards substantially greater recurring enterprise payment activity as more customers move into production, wallet share increases, and more settlement corridors become active. Four growth curves we are focused on. As we think about the next phase of OwlPay, I do not believe investors should measure progress based on a single month of TPV. There are four growth curves we are focused on. First is production conversion. How many signed enterprise customers move from onboarding into recurring production? Second is wallet share. Once a customer is live, how much of the customer's existing payment activity can migrate onto Harbor?

Third is geography and corridor expansion. How many new markets, corridors, and use cases can the same infrastructure support? Fourth is settlement infrastructure depth. In our most important markets, how much can we deepen our banking, liquidity, routing, and local settlement capabilities? Together, these four factors can reinforce each other. More enterprise customers create more transaction volume. More volume can justify deeper infrastructure in strategically important markets. Deeper infrastructure can improve product reliability, coverage, and economics. A stronger product can help us win additional customers and increase wallet share with existing customers. That is the flywheel we are trying to build. We are not pursuing volume simply for the sake of volume. We want transaction growth to help us build and deepen a global enterprise settlement network. The long-term opportunity.

I believe the future financial system will not be built around one stablecoin, one blockchain, one bank, or one payments network. It will be a multi-rail world. Enterprises do not want to manage thousands of different providers themselves. They need an infrastructure layer that can help orchestrate stablecoin networks, banking rails, compliance, liquidity, FX, routing, and local settlement. We want OwlPay to become that layer. Importantly, while the timing of commercialization in 2026 has been shaped by enterprise activation and production ramping, our previously stated long-term target of approximately $500 million in annual revenue from OwlPay and stablecoin-enabled payment services by 2030 remains unchanged. This remains a long-term strategic target and should not be interpreted as near-term financial guidance. We do not expect the path to the object to be linear. What matters today is the operating foundations behind the opportunity are becoming increasingly measurable.

Customers moving into production, increasing wallet share, expanding transaction activity, broader corridor coverage, and deeper settlement infrastructure. Over the past several years, we were building payment infrastructure. During the first half of this year, we began proving that enterprises are willing to use it. As we enter the second half, our job is to prove that this infrastructure can scale into a global enterprise settlement network. We do not simply want to become a company that processes stablecoin transactions. We want OwlPay to become part of the infrastructure enterprise used to move money globally. That is the company we are building. Thank you. I will now turn the call over to Winnie to discuss our first half financial results and how we expect our revenue mix, margin profile, and operating leverage to evolve as this settlement network continues to scale.

Thank you, Darren. When looking at our first half results, I think the most important point is that OwlTing is in the middle of a significant transition in both its revenue mix and its business model. Our reported first half financials still largely reflect our historical businesses, including our Taiwan payment gateway, hospitality, and e-commerce operations. At the same time, the business that we expect to drive our next phase of growth, stablecoin-enabled cross-border payment and settlement, only began moving from infrastructure build-out and client onboarding into meaningful commercial production during the first half. I will spend a few minutes on the reported numbers, but more importantly, I want to explain how we see the financial model evolving from here. For the first half of 2026, total revenue was $3.87 million, compared with $3.84 million in the first half of 2025.

Payment service revenue was $2.11 million, compared with $2.17 million last year. Hospitality software revenue increased approximately 24% to $0.8 million from $0.64 million. What is more important than the headline revenue growth is the change taking place underneath it. Historically, the majority of our payment revenue has come from our Taiwan payment gateway business. During the first half of 2026, we began to see payment activity increasingly shift towards stablecoin-enabled cross-border payment and settlement through OwlPay. That transition was still at an early stage during the reporting period. Most Harbor clients were progressing through compliance, APIs integration, corridor activation, and initial productions. As a result, the first half income statement contains relatively small contribution from the business that is now beginning to scale. We are already seeing early evidence that this change in mix can improve our underlying economics.

Reported gross margin was 6.4% compared with 12.5% last year, primarily reflecting share-based compensation recognized within cost of revenue. Excluding share-based compensation, adjusted gross profit increased to approximately $0.59 million from $0.48 million. Adjusted gross margin improved to 15.3% from 12.5%. We achieved that improvement on essentially flat revenue. That is an important point because over time, we expect the migration of our payment mix from traditional gateway revenue towards stablecoin-based cross-border payment and settlement to result in structurally higher gross margins. Our reported net loss for the first half was $18.82 million, compared with $3.91 million last year. The increase in reported net loss needs to be understood in the context of several significant non-cash and financing related items. Approximately $10.4 million was non-cash share-based compensation. Approximately $2.5 million related to finance costs associated with our convertible note.

The prior year period included approximately $2.5 million of net foreign exchange gains that did not repeat this year. By comparison, adjusted operating expenses, excluding share-based compensation, were $7.24 million compared with $6.79 million last year, an increase of only 6.6%. We believe that distinction is particularly important at this stage of our development. Over the last several years, we have already made substantial investment in regulatory licenses, banking relationships, compliance infrastructure, settlement connectivity, and technology. The objective now is not to recreate that infrastructure every time volume increases. It is to put substantially more payment volume across the infrastructure that is already in place. The financial opportunity comes from increasing utilization of infrastructure we have already spent years building, and that is where the financial model begins to change.

As Darren discussed, post-period operating activity has accelerated meaningfully as more enterprise clients have moved into production and transaction activity has increased across the platform. From a financial perspective, what matters is how that acceleration translates into revenue mix, gross margin, and operating leverage. At the same time, transaction volume and revenue will not necessarily increase at exactly the same rate from period to period, as transaction economies can vary by parallel, settlement model, customer profile, and service mix. This is the transition we want investors to focus on. The first half was primarily about building and activating the network. The next stage is about monetizing that network. Importantly, the operating cost base needed to support this platform is already largely in place. Our current normalized cash operating expense run rate is approximately $1 million per month, excluding share-based compensation, financing-related items, and settlement liquidity requirements.

This does not mean our costs will remain fixed. As payment volume and revenue scale, however, we do not expect operating costs to grow at the same rate. That is the operating leverage embedded in the model. In other words, the next dollar of revenue should not require the next dollar of cost. We expect a growing share of incremental payment revenue to convert into gross profit and, over time, into operating profit as more contracted clients move into recurring production, existing clients increase utilization, and we activate additional corridors. There is also an additional opportunity as our settlement network develops. In selected corridors, greater direct banking and settlement connectivity can allow us to reduce reliance on intermediary layers and improve the economies of the transaction itself over time. This means scale can benefit us in two ways.

First, by spreading the cost of existing infrastructure across a larger revenue base. Second, by improving transaction economies as our settlement capability deepens. That is also why we continue to expect our margin profile to look very different at scale than it does today. For our stablecoin payment business, our long-term gross margin target remains approximately 65%-70% at scale. That is not a near-term margin focus. To bridge that long-term model is driven primarily by three factors: a mix shift toward higher-margin stablecoin payment and settlement products, greater utilization of infrastructure already in place, and more direct banking and settlement connectivity in selected corridors, which we believe can reduce intermediary costs over time. The same applies to our long-term revenue opportunity. Our previously stated 2030 revenue target of approximately $500 million remains unchanged.

This remains a long-term strategic target and should not be interpreted as near-term financial guidance. We do not expect the path toward that target to be linear. Our focus today is on the operating inputs required to build toward that objective. The number of enterprise clients entering production, payment volume, transaction frequency, corridor expansion, utilization per client, and ultimately, the conversion of that activity into recurring revenue and gross profit. From a liquidity perspective, operating cash outflow was $5.92 million during the first half. We ended June with $10.19 million of cash and cash equivalents, together with an additional $1.67 million of restricted cash. As transaction activity scales, we will also continue to manage settlement liquidity separately from our operating cost base. We will continue to manage our capital carefully while investing behind what we believe is a significant long-term growth opportunity.

If I leave investors with one financial takeaway from the first half, it would be this: the key change taking place today is not simply transaction growth. It is the combination of revenue mix shift, increasing infrastructure utilization, and improving settlement economies. As these factors come together, our objective is to convert transaction growth into recurring revenue, recurring revenue into gross profit, and ultimately, gross profit into operating leverage. We believe the second half of 2026 should begin to make that progression increasingly visible in our financial results. With that, I will turn it back to Henry for closing remarks.

Thank you, Winnie, and thank you, Darren. Before we close, I would like to leave investors with three points from today's discussion. First, the first half of 2026 represents a transition period for OwlTing. The financial statements still largely reflect our historical revenue base, while our stablecoin payment infrastructure was moving through client onboarding and into commercial production. Second, that transition is now becoming increasingly visible in our operating data. We are seeing more enterprise clients enter production. Transaction activity continue to scale, and a growing share of payment flow moves through our stablecoin-enabled cross-border payment and settlement infrastructure. Third, we believe the financial characteristics of the company should change as that transition progresses. Our infrastructure and operating cost base are largely established. While our revenue mix is moving to our business that we believe can support significantly higher margin and operating leverage at scale.

Our focus from here is execution, activating more clients, increasing utilizations, expanding corridors, growing recurring payment revenue, and demonstrating the financial leverage of the infrastructure we have built. We remain focused on our long-term objective of building OwlTing into a leading regulated global payment infrastructure platform, and we look forward to updating investors on our progress in the periods ahead. On behalf of the entire OwlTing team, thank you for joining us today and for your continued support. Thank you and goodbye.

Good morning and good evening to all, and welcome to the OBOOK full year 2025 result conference call. I'm Henry, investor relations director, and I will be your speaker host today. I have with me our Founder, Chairman, and Chief Executive Officer, Darren Wang, and our Chief Financial Officer, Winnie Lin. Before we proceed, I would like to remind you that this call may contain forward-looking statements which are subject to risk and uncertainties that may cause actual results to differ materially from our current expectations. Forward-looking statements may include, among other things, our business outlook, expected product and corridor rollouts, enterprise pipeline conversion, regulatory licensing progress, and long-term operating leverage.

For a detailed discussion of the risk and uncertainties that could cause actual results to differ, please refer to our earnings press release issued earlier today and our filing with the SEC, including our annual report on Form 20-F. In addition, during today's call, we will reference certain non-IFRS financial measures, including non-IFRS gross margin and non-IFRS operating expenses, which exclude share-based compensation expense. These non-IFRS measures are provide a supplement information and should be considered in addition to and not as a substitute for financial information prepared in accordance with IFRS. A reconciliation of non-IFRS measures to their most directly comparable IFRS measure is included in our earnings press release and our annual report on Form 20-F.

On today's call, Darren will walk you through our 2025 strategic milestones, provide an update on the OwlPay platform and our progress across the four layers of our settlement stake, share early indicators of enterprise commercial traction, and frame where we are headed in 2026 and beyond. Winnie will then provide a detailed review of our full year financial results, including a non-IFRS framework we believe is most useful for evaluating our underlying business economics, our liquidity position, and our operating leverage thesis as volume scale across our infrastructure. I will now turn the call over to our Founder, Chairman, and CEO, Darren Wang.

Thank you, Henry. Hello, everyone, and thank you for joining us. Before I begin, I want to thank our employees, partner, customer, and shareholders for your support over the past year. We deeply appreciate your trust in OwlTing Group and your continued commitment to our long-term vision. Before I review the year, I want to start with an important development. Including SBI Holdings, shareholders of more than 99% of the shares that were originally subject to lock-up restrictions have voluntarily agreed to extend those lock-up for an additional year. We believe that decision sends a strong signal. It reflects the conviction of our core shareholders in the company's long-term direction and our ability to create value over time. It also reinforces alignment between our shareholder base and our strategy priorities.

From a market perspective, it help reduce concerns around potential near-term selling pressure while supporting confidence in the stability of our capital structure. Turning to 2025, this was one of the most important years in OwlTing's 15-year history. During the year, we completed our delisting on Nasdaq, and just as importantly, we completed the core build out of the infrastructure that will support our stablecoin-enabled cross-border settlement business. If I were to describe 2025 in one sentence, I would put it in this way. 2025 was not simply a year of financial result. It was a foundational year, a year that positioned OwlTing for its next stage for growth. What we built was not a single product. We built an infrastructure layer for global payment and settlement. At the center of the platform is OwlPay Harbor.

OwlPay Harbor is our enterprise-grade stablecoin on-ramp offering and global settlement infrastructure. It is not a standalone feature. It is the core infrastructure layer that allows businesses to connect stablecoin, fiat, payment rails, and settlement capabilities in a unified system. Instead of integrating bank by bank, market by market, and compliance workflow by compliance workflow, our customers can access those capabilities through one platform. At the settlement layer, we have already integrated key network and infrastructure, including Circle Payments Network, Visa Direct, and a range of local and cross-border payment rails. They allow us to help customers convert stablecoin into fiat more efficiently and move funds into accounts and payment endpoints across multiple markets. Today, our fiat payout and settlement capabilities support major markets across the U.S., Europe, the U.K., Latin America, Asia, the Middle East, and Africa.

With global US dollar wire capabilities, our reach can extend to more than 180 countries subject to local regulatory, partner, customer, and compliance requirement. The second layer of the platform is payment gateway. Today, the foundation of the layer is PayNow. It is our most mature payment gateway product and currently our most direct contributor to revenue. Our strategy is not to replicate PayNow country by country. Our strategy is to use Harbor to connect into existing payment gateways, processors, and local payment capabilities around the world, allowing those fiat-based entry point to expand into stablecoin on-ramp and global payout functionality. In other words, PayNow is our current entry point. Harbor is the platform that enable us to scale the capability globally. The third layer is OwlPay Wallet Pro. Our Wallet Pro serve as the interface for moving value into, through, and out of the system.

It supports conversion, storage, and transfer between fiat and stablecoin. We currently support USDC settlement across multiple blockchains, including Stellar, Ethereum, Solana, Polygon, Avalanche, Optimism, and Arbitrum. We also use Circle CCTP to improve efficiency and control in cross-chain USDC transfers, and we continue to evaluate additional chain integrations. Our multi-chain strategy is deliberate. It is driven by enterprise use cases, liquidity, compliance, and practical utility, not expansion for its own sake. The fourth layer is OutPay Cash. This is our mobile-first remittance application for end users built on Visa Direct. If OwlPay Harbor payment gateway and Wallet Pro solve the infrastructure and enterprise side of the equation, OutPay Cash brings those capabilities directly to the user. This is also where our work with Visa become especially important because it help connect stablecoin to mainstream payment experience in ways they are visible and relevant to everyday users.

If I step back and summarize the platform, Harbor is the settlement infrastructure. Payment gateway is the global payment entry layer. Wallet Pro is the fund access and multi-chain interface, and OutPay Cash is the end user application layer. As we enter 2026, we also begin to see something very important. This platform is no longer just built. It is beginning to gain real commercial tractions. Six months ago, we were talking primarily about pipelines. Today, we are talking about signed customers, customer in onboarding, and a pipeline that's moving toward actual transaction flow. The customer base fall into several categories. First, Web3 and digital asset platform, including enterprise wallet, trading, and infrastructure customers. Second, cross-border remittance, fintech, and payment platforms. Third, enterprise treasury and B2B settlement use cases. Fourth, real-world nonprofit and specialized use cases.

These customer and use cases span North America, Latin America, Africa, the Middle East, and Asia. That matters because it shows demand for OwlPay Harbor is not isolated to one geography or one vertical. We are seeing the early formation of global payment corridors across regions and industry. Among the example we can publicly reference today are Gravel through Oval Technologies, DexPay, and Hope for Haiti. This relationship reflect a range of use cases from blockchain and fintech applications to cross-border payment workflow to a real-world payment deployment. More importantly, they give us confidence that OwlPay Harbor is being built for real customers, real use cases, and real transaction opportunities, and even that does not capture this full opportunity ahead.

As of March 31st, 2026, based on our signed customers, customer in onboarding, and active pipeline at that date, we conservatively estimate the corresponding annualized transaction volume to be around $5 billion. This reflect a first quarter 2026 snapshot only and should not be interpreted as full year 2026 assumption, as we expect additional customers signing and onboarding actively over the remaining three quarters of the year. To be clear, this is not revenue guidance, but it does indicate that early in 2026, our platform is already beginning to serve global payment demand at a meaningful scale. Since that March 31st snapshot, our commercial momentum has continued.

As of April 2026, OwlPay Harbor has 29 contracted enterprise client and an additional seven in onboarding, with aggregate annual payment volume across these clients on existing business growing from over $5 billion to over $6 billion. What is especially encouraging is the diverse of the client base by industry, blockchain and Web3 platform representing approximately 36%, cross-border payment client approximately 30%, financial institution approximately 16%, and digital wallet approximately 9%. This tell us the demand is not concentrated in one place. We are seeing early formation of global payment corridors across diverse regions and industries. Say simply, 2025 was the build year. 2026 is the year commercialization begins. Before we move on, I want to briefly reiterate how we think about the long-term opportunities. As discussed on our last earning call, our internal strategy framework remains unchanged.

We continue to see a path toward approximately $500 million in annual revenue from our stablecoin infrastructure business by 2030 based on the infrastructure we have already built and the enterprise use cases we are actually supporting today. To be clear, this is not financial guidance or a forecast, but a directional framework reflecting how transaction value can scale across our platform as adoption of settlement infrastructure accelerate globally. I also want to be clear about how we think about monetization because it is not a single take rate model. For core enterprise settlement flows, we use a conservative framework of approximately 25-35 basis point. Visa Direct enable payout, remittance, and wallet-to-card use cases are designed to carry meaningful higher fee economies and margin compared to our core settlement flows, depending on corridor, partner structure, and transaction type.

I also want to highlight an emerging structure trend that we believe is highly relevant to our platform. We are entering an era where transactions are increasingly shifting from user-initiated to AI-initiated. Events in AI are enabling agent to not only guide discovery, but also execute transaction directly, accessing approved wallet, selecting asset, and completing payment autonomously. Protocols like ERC-x402 are being developed to support the shift, enable AI-driven checkout experience that significantly reduce friction and accelerate transaction completion. We believe this represent a meaningful evolution in global commerce. As these AI-enabled flows develop, they require fast, programmable, and borderless settlement infrastructure. At the same time, we believe AI agent will become a new class of user within the financial system.

Over time, many may require their own wallet, and we see potential for our Visa Direct-enabled infrastructure to support a future where AI agent can be linked to existing debit credentials to automate transaction in a compliant and user-authorized manner. OwlPay is already positioned to support this transaction through our stablecoin-backed checkout and multi-rail settlement capabilities. In parallel, we have also broadly integrated AI into our internal operations and product development process. We see AI as more than a productivity tool. We believe it will become a key driver of operating leverage, allowing us to scale engineering and operation with limited incremental headcount. As a result, we do not currently expect significant workforce expansion. We believe it will become a core driver of product capability, customer experience, and operating leverage.

Going forward, we plan to continue embedding AI across the organization, including customer onboarding, risk and compliance support, operation, internal knowledge system, and the product experience. We are also continuing to evolve the organization toward a leaner and more efficient operating model with AI collaboration as a core enabler that should improve operating leverage, increase development speed, and enhance productivity across teams. Before I turn into the financial, I want to highlight a few structural indicators that we believe are important. In 2025, our revenue mix continued to shift toward payment and higher-margin software service. Payment service represented 56% of total revenue. Within that, online system revenue growth 25.3% year-over-year. Hospitality-related software service growth 19.3%. We believe this trend reflect more than steady execution in our Taiwan business. They also point to improving revenue quality and stronger platform economies.

I also want to address one important point on reporting earnings. Our reporting loss for 2025 was significantly affected by share-based compensation expenses. Under IFRS, these expenses must be recognized in the income statement, but they are non-cash in nature. They affect reporting result, but they do not represent an equivalent cash outflow. When evaluating our 2025 performance, we believe it is important to look not only at statutory earnings, but also at our operating cash profile, our improving revenue mix, and the platform foundation we have built for future growth. Let me close with this. 2025 was a pivotal year for OwlTing. It was the year we completed our Nasdaq listing. It was the year we further improved the quality of our revenue base. Most importantly, it was the year we completed the core infrastructure for our future stablecoin-enabled cross-border settlement business.

At the highest level, the story is very straightforward. In 2025, we build the infrastructure. In 2026, we begin to scale commercialization. We are not building another short-cycle fintech app. We are building a compliant-first settlement infrastructure for the future of cross-border money movement. We believe our team should not be evaluated only by its 2025 reporting revenue, but by the infrastructure completed in 2025 and the enterprise transaction demand that is beginning to fall around the infrastructure in 2026. To all of the shareholders who have supported us through the building phase, thank you again. We appreciate your trust, your patience, and your support. With that, I will turn the call over our CFO, Winnie, to walk through the financial and operating result.

Thank you, Darren. Before working through the full year numbers, I want to frame where 2025 sits in our multi-year trajectory and what the financials actually tell us about where this business is headed. First, completing what we set out to do. When we spoke to you at our first half earnings call, I described 2025 as a deliberate investment year in which we intentionally prioritize system completion over short-term revenue acceleration. As Darren mentioned earlier, we delivered on that commitment. We complete our Nasdaq delisting, launched our OutPay Cash with Visa, integrated the Circle Payments Network, expanded our U.S. regulatory coverage to 40 states as of year-end, and built out our OwlPay Harbor as an enterprise-grade settlement API. Just after year-end, we added Nevada, bringing us to 41 states. Second, understanding what the 2025 income statement is reflecting.

Our reported net loss of $31.9 million will be the first number investors see. I want to be direct about what's behind it. Approximately $16.8 million is non-cash share-based compensation from RSUs and RSAs granted under our shared incentive plan. Another $6.9 million is non-recurring legal, professional, advisory, and marketing expenses related to our Nasdaq listing. Together, these two items account for $23.7 million. Strip those out, the underlying loss was approximately $8.2 million, an improvement from $10.3 million in 2024. This is an important distinction. The headline loss reflects the accounting cost of going public and compensating our team, not a weakening in our underlying business economics. Third, the operating leverage thesis is now becoming real.

In the first half call, I told about the potential for operating leverage once volume moves onto our infrastructure. We are now beginning to see early proof of this. As Darren mentioned, as of April 2026, we had 29 contract enterprise clients and an additional seven in onboarding, representing over $6 billion in estimated annual payment volume based on their existing business prior to integration with our platform. From a financial perspective, what matters is not only the size of this potential volume, but also the structure of the model. For core enterprise settlement flows, we typically earn fees in the range of 25-35 basis points per service component. As a single transaction may involve multiple services, the overall transaction economics reflect a combination of these components. Our blended take rate remained consistent, while our cost structure is largely fixed across compliance, licensing, engineering, and infrastructure.

As volume scales onto our platform, we expect incremental economies to become increasingly favorable, with certain Visa Direct-enabled and card-linked use cases designed to carry higher margins. While these volumes are not revenue guidance and remain subject to activation, compliance review, and ramp up, they are important indicators of the commercial momentum we are seeing. Lastly, our balance sheet is in good shape to support the activation phase. We ended the year with $9.4 million in cash and restricted cash, up from $8.7 million a year ago. Subsequent to year-end, we secured a $10 million senior secure convertible note from Lind Global Asset Management, with access to up to $15 million in total funding subject to mutual consent. This strengthens our liquidity position as we execute on our 2026 priorities. Now, turning to the full year 2025 result.

All figures are in US dollars, and all comparisons are year-over-year unless otherwise stated. Before I go through the numbers, one thing to highlight. In 2025, we recognized share-based compensation, or SBC, across our cost line. This represent the non-cash cost of compensating our team in equity, primarily through Restricted Stock Units and Restricted Stock Awards under our share incentive plan, along with other form of share-based compensation. We have no SBC in 2024, which means it distorts almost every year-over-year comparison. The adjustments we are presenting relate specially to SBC associate with RSUs and RSAs, while other components of share-based compensation, if any, are not adjusted. As I go through each line, I will provide both the reported numbers and adjusted figures, which exclude RSU and RSA related SBC, so you can better understand the underlying performance of the business.

SBC will continue going forward as grants vest, and the amount will depends on future grant activity under our share incentive plan. With that context in mind, let me walk through the numbers. Our total revenue was $7.9 million, up about 4% from last year. Modest growth, and that was intentional. We were building, not harvesting. Payment service was the bright spot, up nearly 10% and now more than half of our total revenue. This came entirely from our traditional payment gateway business through fiat. Our newer products, OwlPay, Wallet Pro, OutPay Cash, were effectively pre-revenue in 2025. Those are the 2026 story. Our nets continue to grow nicely. Subscribers up 9.5% to over 2,800, and ARR up over 11% to about $1 million. Cost of revenue was up about 17%, outpacing revenue growth.

Most of that increase was SBC, something we didn't have last year. Strip that out, costs were up less than 3%. Reported gross margin looked like it fell off a cliff from 13% down to under 3%, but that's almost entirely the SBC effect. On an adjusted basis, margin actually improved slightly, driven by better revenue mix as our net subscriptions grows as a share of total revenue. Total operating expense was $32.4 million, up from $9.9 million. That number needs context. Marketing and sales reported up significantly, but excluding SBC, we actually spent less than 2024. That reflects our adoption of AI-assisted tools for content creation and marketing production, which reduce our reliance on third-party service providers. That's the efficiency we want. G&A, this is the big one. $21.7 million, up from $5.2 million.

Two things explain almost all of it. 10 million of SBC and about $6.9 million in listing-related fees. Exclude both, and the recurring G&A base was around $4.8 million, actually slightly lower than 2024. This listing-related costs will not recur at this level going forward. R&D, the increase is mostly SBC. Excluding SBC, R&D was up about 7% with the same engineering team size as 2024. This investment support the continued development of our payment infrastructure and compliance capabilities. To put it simply, strip out the SBC and the listing cost, and the underlying business was running at roughly the same cost base as 2024. That's the framework I would like investor to carry when evaluating our expense trajectory going forward. Net loss was $31.9 million, but again, $23.7 million of that was SBC and listing cost.

Strip those out and the underlying loss was approximately $8.2 million, better than $10.3 million in 2024. Operating outflows were $11.5 million, up from $9.1 million, driven by listing-related payments. Financing brought in $30.6 million, primarily from $16.6 million in equity raises, partially offset by preferred share redemption and lease payment. We ended the year with $9.4 million in cash, up from $8.7 million. That bring us to where we stand today and more importance, where we are headed. Let me close with the framework I would like investor to use when thinking about where we are. 2025 was the build year.

We listed on Nasdaq, assembled a full OwlPay products suite, built a regulatory footprint across the U.S., Poland, Japan and absorbed a one-time cost that come with taking a company public. The reported financial reflects those investment. 2026 is the commercialization year. As Darren was through, enterprise clients are now onboarding onto OwlPay Harbor. OutPay Cash is live. Visa Direct is integrated. From a financial perspective, what matter is that the non-recurring listing costs are away. SBC will continue as part of our ongoing cost structure, and the overall expense base becomes a cleaner reflection of our underlying operations. Huoz Lab is a business with a largely fixed cost base, expanding transaction-based revenue, and a clear pace to operating leverage. The structural thesis hasn't changed. We continue to believe OwlTing should be evaluated as settlement infrastructure provider.

We own the compliance license, the settlement technology, and the multi-rail architecture required to move money across border. As volume scales across our infrastructure, we expect the unit economics to compound in our favor. With that, I will turn it back to Henry for closing.

Thank you, Darren and Winnie. Before we conclude, I would like to extend our appreciation to our shareholders, partners, and customers for your continued trust and support. I also want to recognize the dedication of our global OwlTing team, whose effort over the past year have been instrumental in advancing the company through a pivotal stage of development. As we move forward, our core mission remain unchanged. We are focusing on leveraging blockchain technology to build more transparent and reliable system for data and value transfer while enabling more efficient global payment flows for business and consumers. We believe the progress made in 2025 has established a strong fundamental for the next phase of our growth as we transition from infrastructure build to broader market activation. On behalf of everyone at OwlTing, thank you again for your time and support.

We look forward to continue the conversation in the months ahead. Thank you and goodbye.