S [Foreign Language] Good morning, everyone. Welcome to our Goodfood earnings call in which we will present our results for the second quarter of fiscal 2026.

You can find our press release and other filings on our website and SEDAR+ and all figures on this call are in Canadian unless otherwise noted. With me today are Najib Maalouf, our newly appointed President and Chief Operating Officer; Vanessa Hadida, our Vice President of Finance; and Ross Aouameur, our outgoing Chief Financial Officer.

Before we begin, I wanted to highlight two things. First, Najib and I joined Goodfood with a clear mandate: stabilize the business, protect cash and rebuild discipline.

That work is underway, and albeit today's results will show the impact of a license suspension, we have made significant strides in advancing our mandate. Also, for fiscal 2026, both Najib and I have made the deliberate decision to forgo our base salaries.

This is a voluntary choice. Our employment agreements remain unchanged, but we believe that in this phase of the company's transformation, accountability needs to start at the top.

This is not a signal that we expect others to do the same. Our priority is to build a stronger, more resilient company, one that creates long-term opportunities for our teams, delivers for our customers and earn the trust of our shareholders.

The second thing I wanted to highlight is that today is the last earnings call our Chief Financial Officer. I want to recognize Ross for his strong leadership and disciplined financial stewardship over the years.

He has been instrumental in the transition, and we wish him continued success in his upcoming next chapter. I will now turn it over to Najib to begin our review of the quarter with Slide 3.

Thank you, Selim. First, I wish to say that it is a privilege to be serving alongside you one more time.

Slide #3 captures the reality of the quarter. We are executing a necessary reset while absorbing short-term disruption.

During Q2, operational factors, including a temporary regulatory-related disruption impacted order volumes and created cost inefficiencies, particularly in logistics. These pressures were real that they were also temporary.

More importantly, they accelerated our execution. We responded quickly with disciplined cost actions, namely reducing marketing intensity, optimizing head count and tightening our focus on profitable demand.

As a result, we continue to see strength in average order value and customer quality. At the same time, the reset is well underway.

We are simplifying the operating model, removing complexity, aligning the cost structure to current volumes and focusing the business on core profitability. In parallel, we are sharpening the product offering, improvements in ingredient quality, meaningful increase in portion sizes and faster recipe cook time to 20 minutes or less are designed to delight customers and in turn, better retention and increase wallet share from our most engaged customers.

So while Q2 reflects pressure, it also reflects progress. The actions we're taking are deliberate, structural and focus on improving the earnings profile of the business.

I'll now turn it to Vanessa to walk through the financials.

Thank you, Najib. As shown on Slide 4, net sales and active customers declined year-over-year reaching $22.5 million and $59,000, respectively.

These figures reflect three primary factors: the temporary license disruption during the quarter, lower order frequency, and our intentional pullback in marketing and incentives. The reduction in marketing and coupon intensity is a conscious trade-off.

We are prioritizing revenue quality over volume and that is reflected in the continued increase in net sales per active customers year-over-year, reaching $382 higher basket sizes and lower discounting are driving the improved unit economics. This is an important point.

While the top line is lower, the underlying revenue base is becoming more efficient and more profitable on a per customer basis. I will now turn to Slide 5 to discuss margins and profitability.

Profitability in the quarter was impacted by a combination of higher shipping and labor costs and lower fixed cost absorption due to the reduced volume as a result of a temporary license suspension. As such, gross profit was $7 million for a gross margin of 30.6%.

These pressures resulted in margin compression and negative adjusted EBITDA for the quarter to the tune of negative $1 million. That said, we view a significant portion of these results as transitional in nature rather than a structural change.

Indeed, when the license suspension occurred, we shipped Ontario orders from our Calgary facility, which is significantly more costly than shipping from our Montreal facility, which we have now resumed. Of course, the current operating environment with heightened fuel cost and food inflation remains a meaningful headwind.

We also have already taken action to address these cost drivers, both through operational simplification, tighter cost control and pricing, which we expect to support margin stabilization going forward. Moving now to Slide 6.

Cash flow in the quarter reflects the impact of profitability as well as working capital timing with certain payments shifting into Q2. Importantly, capital expenditures remain tightly controlled, and we continue to operate with a disciplined approach to cash management.

Our focus is clear: improving cash generation through better margins controlled investments and continued working capital discipline. I will now turn to Slide 7.

The key takeaway from this slide is that Q2 reflects a combination of lower scale and temporary cost pressures. At the same time, the results reinforce why our current priorities, cost discipline, margin protection and cash generation are the right ones.

We are actively addressing the drivers of performance and the actions underway are designed to improve both profitability and liquidity over time. With that, I will now pass it back to Najib to walk through our outlook.

Thank you, Vanessa. Let's now turn to Slide 8.

Our path forward is focused and disciplined. First, on the operating model.

We're simplifying the business and aligning the cost structure to current demand levels. We're not relying on a market recovery to improve performance.

We are designing the model to perform under today's conditions. Second, on the product.

We are repositioning the offering around value, quality and convenience. We have introduced a simpler menu that is designed to fit our customers' busy lives.

We also increased portion sizes and have sourced better ingredients to ensure the consistent quality of our subscribers' experience. This is already contributing to a stronger basket size and is expected to support retention and lifetime value.

Third, on capital and the balance sheet, our priority is consistent cash generation and liquidity preservation. Every dollar of capital is being allocated with discipline with a clear objective of maintaining flexibility.

And fourth, on growth, we will remain selective. We see opportunities in adjacent categories such as heat and eat, but we will pursue them in a measured way with a strict focus on returns and cash flow.

The common thread across all of these priorities is discipline. We're simplifying the business, improving execution and positioning Goodfood to generate more consistent and sustainable financial performance.

I will now turn it back to Selim for closing remarks.

Thanks, Najib. This quarter was not about optics.

It was about action. We addressed operational issues, reduced complexity and reinforce discipline across the organization.

We are running the business with a clear set of priorities: protect margins generate cash and maintain balance sheet flexibility. We have $44 million of convertible debt on the balance sheet with large interest payments that is hindering our transformation and ability to invest in the business.

We are focused on strengthening the business while evaluating a range of financial alternatives to address our debt situation and enhance long-term value. We are not depending on external improvements to deliver results.

We are focused on what we control, which are execution cost structure and product relevance. This is how we will rebuild performance and create long-term shareholder value.

With that, I will now turn it over to the operator for Q&A.

Thank you for joining us on this call. We look forward to speaking with you again at our next call.