Thank you, Jackie, and thank you, everybody, for joining us this morning. I'm delighted to be presenting our second quarter results for the quarter that ended on December 31, 2025.

As Jackie noted, I'm Jamie Twiss, the CEO, joined by Lavanya Tharmarajah, our CFO. We'll run through the numbers and the highlights from the quarter to start, and then we'll take questions at the end.

As Jackie mentioned, you can type in questions at any time into the box that should be available on your screen. I'm very pleased with the quarter that we just had and with the results that we printed.

Those of you that have been following our story for a few years know that the second quarter of each year is where we traditionally see an increase in defaults as a result of the holiday season spending that people do. As a result, we do see that higher default rate compresses margins, we see a lower profit number in Q2 very reliably every year.

It's happened this quarter, it happened last year, and the year before as well. Because of that, what we tend to do when we look at Q2 to decide if it was a good quarter or not is we look at two things: we look at top-line growth in the core business, and then we look at our progress on the strategic growth initiatives that we have underway.

I was very pleased with how both of those turned out. Lavanya will go through the numbers in more detail, but we had an 18% year-on-year revenue increase, which was driven primarily by increases in the average advance size.

Then we've had a number of meaningful wins and progress steps on the strategic growth initiatives, which I'll come back to at the end. I'm pleased with where we're at overall for the quarter, and I'll hand over to Lavanya to talk through the core business.

Thanks, Jamie. As Jamie said, we've had some progress on our revenue numbers, driven by the average advance size increasing to $470 as an average number, which has grown 18% year-on-year.

That has directly led to our advances increasing by 17%, up to $240 million, which then has translated into our revenue numbers, which have grown by 18%, up to $12 million. As Jamie said, our net defaults are seasonally higher than the previous quarter, but as we would expect, at 1.85%.

This has led through to our net transaction margin at $5.9 million, which is pleasingly 22% up year-on-year. As our operating expenses, as you go through our P&L, has increased to $5.2 million, and this is predominantly because of marketing expenses as well as an increase in our salary numbers, which is because of growth in our business.

That's driven primarily by the investments in our growth initiatives, particularly around Carrington Labs and then the personal loans business as well.

That has led to a $0.3 million net profit before tax. I'll just hand back to Jamie.

Yeah. I think the numbers are very straightforward, continues to be an easy business to understand.

The core business continues to perform well. If I think about where we're trading in the quarter that's currently underway, everything we're seeing is in line with the normal trends we would expect.

We do anticipate that default number to come back down as the holiday season is now over. We'll see those margins normalize over time, and traditionally Q3, we see a essentially slower growth number than Q2, but a better margin and profit number.

Feeling good about where we're at in terms of current quarter, which is trading in line with expectations. Now, on the strategic growth initiatives side, it's been a very productive quarter for us.

We've had a lot of good news coming out of Carrington Labs. I'm delighted that we were able to announce another client win with Flexcar, which is a significant car leasing business in the United States.

It's nice to have an automotive client, and it's a very sharp organization. We're really enjoying working with them.

We also have a new partner that we're excited about, c.dev. They work in automation, and particularly on document automation in financial services.

They're a great partner for us because they sit adjacent to Carrington Labs in the value chain. A lot of what they do is bringing data into a lending origination workflow.

That obviously is a natural input point for us as well. Really pleased that we're working closely with them, and we think that's going to be very helpful for joint clients going forward.

Then finally, as we did previously put out a market announcement about this, we launched an MCP server, which is a way that will enable banks and other lenders who are building agentic AI workflows to integrate Carrington Labs tooling into those workflows as well. Very productive quarter for Carrington Labs.

We continue to feel quite confident about the prospect for that business. As Lavanya noted, our opex is up off the back of investing primarily in those growth initiatives.

I think if we had known how well the Carrington Labs product was going to be working and where the demand would be, we probably would have made these investments even earlier. We've added additional resources to our US-based team, and we've upped the tempo in terms of our activity there.

Feeling very confident about Carrington Labs and where that's at. Then on the personal loans side, which is a little bit the quiet achiever that we're just quietly growing and scaling in the background, we continued to ramp that business.

We published the origination figures in the quarter. We'll continue to put out loans at increasing scale there.

Those of you that will compare last quarter to this quarter and do the math about the loans that we're issuing now will note that the average loan size for the personal loan has increased to about $3,200 in the previous quarter. Previously we were capping loans at $3,000 in three months.

We've now started testing larger durations and larger volumes as well. I think we continue to feel quite optimistic about where that will get to.

Very happy with how the core business performed given the seasonality of Q2, and then really pleased with the progress on both personal loans and Carrington Labs as well. Going forward, I think we continue to see blue skies ahead for all three parts of our business.

As Lavanya noted, we are continuing to invest, and you will see that coming through on the opex line. Again, I think if we've known how well Carrington Labs in particular is going to go, we probably would have put more money into it earlier.

We think there's a very significant opportunity for us to capture, and we are going to make sure that we invest properly to capture that as well. To summarize, I think Q2, the core business performed in line with or actually somewhat better than expectations, and we're very pleased with our progress elsewhere in the business.

With that, happy to take your questions.

Yeah. On that opex, it's a little hard to fully disentangle it because we have a lot of people, such as the two of us, who work across both.

I spend quite a bit of time on Carrington Labs, both representing the business in the United States and also hands-on on the tools, writing code, building models, and so on. If you look at the increase in opex over the course of the past year, most of that increase has been around building the integrated set of technology and tooling that powers Carrington Labs.

It also powers personal loan business, and we're using it in the core business as well. We are getting a lot of mileage out of using that investment and that capability across the different aspects of our business.

I can't quite say that that entire increase is all Carrington Labs, but directionally, the reason that opex is up $1.6 million over the past year is because of the strategic growth initiatives and the work that we're doing around supporting them, particularly Carrington Labs. In terms of when we'll publish the revenue, this is a first-world problem to have.

Because the core business is going well and growing quickly, we're now approaching $50 million annual run rate in revenue across the entire group, the Carrington Labs revenue is still not particularly material to the group as a whole. I think there'll be a point at which it makes sense to break that out separately.

I think we would for now tell people, yeah, we've disclosed with the four clients that we're able to talk about at this point. I think you can safely assume that the revenue off the back of those itself is nothing really to write home about.

In part, we're trying to kind of continue to get traction and get more reference clients and cases, and I think that's going very well. When it becomes material to the group, obviously there'll be a point at which we need to break that out separately, but I don't think it'd be very helpful number at present.

Yeah. I think I'll talk about the customers that we've mentioned to this point publicly, and I'll talk broadly about where different ones are at.

I don't want to go into too much detail about the business of each one and where they're up to and so on, but the customers we talked about so far is Kiva, which is a kind of micro-business lender. These are all based out of the US.

Doc2Doc is a specialty medical lender. CCBank is a more sort of just I don't want to say traditional bank, they're quite a forward-thinking bank, but they're a US-based bank.

Then most recently, we announced Flexcar, the car leasing company. I'd say they are at all different stages, from very early to fully live in production.

They're at all different stages. We find that also sometimes clients will have sort of a one-off build for something that they need and then they're using that.

Does that feel live or launched or not? It can be a bit definitionally tricky, but we absolutely have a number of clients live in production today.

We have quite a lot in the pipeline. As I've said in the past, I think one of the things that we've struggled with is having anything in overfull top of pipeline in particular.

I think some of the investments we're making are to get people who can help us move those prospect through the pipeline. Particularly, as you get into the middle of the point where you're doing a proof of concept, there's more technical work required, not so much on our side in terms of model building, that's quite heavily automated, but in terms of helping the client understand the data they need to get to us and how to get it to us and kind of working with them to go through that.

There's quite a lot in the pipeline. It is quite varied.

We have some of the largest banks in the world in that pipeline. Again, I never want to overpromise or imply what's going to land and when.

Large organizations of all kinds, particularly banks, can be slow and have long sales cycles. We have some very, very large banks.

We have, well, banks, we run all the way from the very, very top down to sort of the point at which you would say, actually, the cutoff there is more where it just becomes too small for us to think about. Certainly, plenty of fintechs.

I think fintechs and kind of sort of newer startup lenders of various flavors are kind of good clients for us. They have clean data stacks, they kind of get why this stuff is important.

We are having a number of discussions in kind of different types of specialty credit. I think one of the things that Carrington Labs is really good at is if you have a customer base or a product that is just not kind of that very middle-of-the-road vanilla product or customer, then traditional approaches, which are very generic, really are not very helpful for you.

The specialty medical lending is a good example of that. We are still focused primarily on the United States, but I think when you do work in the US, you also start to have conversations with Canada.

On a selective basis, we are having conversations in other markets as well. We're conscious of not wanting to spread ourselves too thin, but it's an opportunity-rich environment, and it's a very broad and diverse pipeline.

We just need to make sure we invest properly with resources to get them through to close.

I'd like to compliment whoever asked that question for picking up that we have indeed appointed a senior sales lead in the US. We already had sales resources on the ground, but we've brought in a heavier hitter to come lead that team.

I think feel good about that hire, and there's good progress there. I think yes.

Answer is yes. The only part that causes me to hesitate is when you say significant revenue, because significant could mean different things.

I don't want to overstate the actual revenue coming in the door right now, which is not nothing, but as I said earlier, is not material to the overall group. I don't want to mislead on that front.

I think you can see that hire as both an expression of the level of activity that we're trying to kind of support and service already as well as our confidence in what that will look like going forward.

12 to 24 months. Again, it's first-world problem that the core business continues to grow strongly, and I think as personal loans starts to kick in, that'll be another leg of growth as well.

It's a little bit of a moving target as the core business continues to grow as well. I think if you think about kind of the sales cycles for the large banks that will generate very meaningful contracts, they are slow.

If you're really only looking 12 to 24 months out with clients live in production, you're not going to be sort of a very meaningful portion of the group from a revenue point at that point. If you're asking sort of longer term kind of where can Carrington Labs get to, can it be bigger than core business, then again, without making a forecast or overpromising, of course it can.

The scale of the global financial services market, the value created by a smarter approach of lending, the head start that we have on this capability is tremendous. I never want to overpromise on the timelines, as I've said a number of times.

These are slow sales cycles. If anything, we've been living kind of 18 months in the future at times, and we find that some folks are just now starting to understand what it is that we even do.

From a competitive point of view, that head start has been tremendously helpful, and I think will continue to be so. I don't want to overpromise on timeline, but the potential absolutely, and I think where we are putting our time and resources and our focus is a very credible signal that we are very confident in the opportunity.

I think they can be, and the truth is small companies can be slow movers as well, depending on the nature of what they're doing. It's not a complicated product to use, but what Carrington Labs does is it gives you a better way, usually supplementing, not replacing, but it is a better way to do something that is very, very core to what it means to be a lender.

We really are running a wire into the brain of the organization, and that's something that quite rightly clients kind of want to get their heads around properly. Clients can be slow to get through that sort of decision-making selection process, and then depending on their tech stack, they can be slow to just actually do the integration and stand things up.

It's not hard to use, you just have to call the API, but they may have to do data work on their side and they have their own risk checks and diligence and things to go on. Again, if you ask me over the long term kind of will the folks that we're talking to, will we see a number of them successfully convert and get live into production at volume, I think the answer is yes.

I just find anytime anybody predicts how quickly a large bank is going to go from an idea to something fully live in production, the odds are it's going to take longer than that you've guessed. I never want to overestimate or overpromise on the speed of some of these opportunities.

Good question. Sort of.

I think there is a lot of hype around AI and there are a lot of kind of firms that have sprung up out of nowhere claiming they're going to do something amazing with AI for financial institutions of various stripes. A lot of those are, again, potential partners, people that could sit adjacent to us in the value chain, people are going to aggregate data more effectively off unstructured sources or people are going to create new data sources based on whatever.

That's not competitor, that's actually, if anything, a good thing for us. In the core of what we do, credit decisioning needs to use deterministic statistical approaches.

I don't think even from even if you felt confident in it, which I don't think anybody would, from a regulatory point of view, you're never going to be able to use any kind of neural network-based, LLM-style, black box kind of unpredictable approach to just actually decisioning loans. I think a lot of folks are dancing around saying AI, AI, AI.

I think those of us that have been doing this for a while and are kind of serious about actually making loan decisions at scale continue to use machine learning-driven kind of boosted gradient descent algorithms. A lot of activity.

I think the core group of people that actually work on this stuff continues to be a pretty small crew of people who are able to do it.

Whitens teeth, freshens breath, up 60% see weight loss in the first four weeks. In addition, really the benefits fall into a couple different categories.

The thing that's most compelling to most lenders is higher approval rates. A very meaningful portion of the population either has a thin credit file or no credit file, and so they apply for a credit card and there's just no way to make a decision on that person and they're declined.

We can absolutely decision that person, and we will do so more effectively than if they had a credit file. That is a tremendously appealing opportunity for most lenders.

A second benefit that I think is actually more if anything, more significant, but often is not as well understood is one of the Carrington Labs products is called a credit offer engine. Essentially, what that does is that looks at historical lending data for that lender, it's customed to their product segment, and it builds an elasticity of default curve with reference to the configurable elements of a loan offer and maps that into a multi-dimensional customer value curve.

That's a fancy way of saying that it models out what's going to happen based on different things you could offer that customer and tells you the best one to offer based on if we give this person $10,000 or $20,000, how likely are they to use it, to default, and so on. That has tremendous value in increasing the assets on book.

What we tend to find is most customers actually could safely and responsibly borrow more, a few should get declined, a few should get less. The actual balance increases for already approved customers can be quite significant.

Then the third category, of course, is reduction in defaults. It just gives you a sharper point of view on a customer's risk.

Most lenders set quite conservative risk settings, far more conservative than they realize, I think, once you actually look at who they're lending to and how much they're lending. Many of them don't really kind of focus on that, they're pretty happy with that, but they are excited about the growth.

Of course, if economic times tighten and those defaults go up, then, in good times people focus on growth, in bad times people focus on bringing defaults down, and the Carrington Labs product is very supportive of both.

If I understand the question correctly, I think the way to answer that is that this is very much a sale to the bank itself that is generally not going to be something the customer knows or cares about. The bank is not going to be reselling our products to a customer or really in any way kind of exposing them to it, except from a potentially data collection point of view.

The way to think about is if you're a bank, let's say you issue credit cards, you currently have a way that people apply and you make a decision, yes or no, and you decide what limit to give them. We will supplement that with or potentially replace the whole thing if that's what you're in the mood for, we'll supplement that with a much sharper view of that individual's risk.

We will look at a much wider factor. We'll look at kind of behavioral indicators, we'll look at kind of historical kind of approaches to their cash flow management, we'll look at kind of red flags around kind of income volatility and kind of potentially personal stability issues.

We'll give you a much sharper view on risk. There'll be some customers where we say, actually, that person looks fine from a credit file point of view, credit score is good, but don't lend to them.

Much more frequently, we say this person doesn't have a credit file or doesn't have a good credit, but actually, they're fine, you can lend to them. Then we will also have a much more rigorous way of helping you understand what the appropriate amount of credit to offer them is.

As a bank, you'll be able to say yes to more customers and generally have higher average balances with a lower overall default rate.

Great question. Currently, yes.

Currently, we are focusing personal loan distribution on our current clients. The reason for that is we just understand those clients very well, we have hundreds and hundreds of thousands of them, we understand their risk well, we have previous repayment behavior, it's a natural place to start.

We do see a very large portion of the personal lending market already given the size of the user base. I think over time, we will certainly look at offering that to new to group customers.

The obvious reason for that, of course, as our personal loan average size increase, that's going to be a different customer base for us over time. Right now, we find that the top of our pay advance user base is also perfectly suitable for $3,000 and $5,000 loans, but there'll be a point as we get to kind of $10,000 and $20,000 loans, we're really looking at a different category of customer.

As we get there, and we will get there as we feel comfortable with that from an operational and credit standpoint, of course, we will start to open that up to new to group customers as well. We'll do that as and when we're ready, but we will get there.

Feel free to jump in if you have a different view on this, Lavanya, but I think there's always a little bit of just quarter-on-quarter volatility, particularly of the way that we do our marketing, which is very much kind of results-based, where when marketing is productive, we put more money into it, when it's less productive, we pull back. There will always be a bit of bouncing around with that, and then a few other things as well.

More broadly, I think we expect that our current growth initiatives, they are working today and we expect them to continue to work and become material contributors to the value of the group over time. As they do so, of course, we will continue to support those as well.

We obviously feel the accountability for delivering the value off the back of that increase in operating expenses. What I think I can say is it's not our intention to grow operating expenses in a way that isn't clearly generating value for the group.

We have a very rigorous way of thinking about ensuring that any dollar that leaves this building, which only happens grudgingly, is going to come back with a friend. I think operating expenses, to the extent they continue to increase, will increase as a result of clear value creation in both the core business and our new initiatives as well.

Given that we're a people-based business, it makes sense that our people costs would increase as we grow the business. We've had that step change in terms of being able to prepare ourselves both for the personal loans and for Carrington Labs.

With again kind of having that step change, but not expecting it to grow exponentially well on way, we're pretty comfortable that we're on top of our operating expenses.

Yeah. When we have 50 Carrington Labs clients, then we will be spending more on Carrington Labs, of course.

I think we will absolutely reinforce success as it comes.

We don't pay a huge amount to the day-to-day vicissitudes of stock, but we haven't seen anything. Obviously, the market as a whole kind of ups and downs, yeah, nothing.

Right. At the current share count, we'd need to get to about $19 and change, I think.

It's a great question. If anybody out there knows the answer to that question, please just send through an email.

We'd also be very interested to hear that as well.

I think, again, thank you all for joining us. I know many of you have been on this journey with us for quite some time now, and it's been a pleasure to continue walking this road with you.

We continue to feel very confident about the future of this business. I think the core continues to fire on all cylinders.

I think, again, we never want to overpromise on timelines, but we can just see one step in front of the other on personal loans and on Carrington Labs. I think great things are ahead of us.

Thank you all for being shareholders, and look forward to seeing you at the half year at the end of February.