Hello, everyone. Thank you for taking time out of your day and to join us on the Dye & Durham fourth quarter and fiscal year 2026 conference call.

We appreciate your time, [look forward?] to sharing information with you.

My name is Todd Schulte, and my background is in operational leadership of large multi-product software organizations. In addition to my role as COO, I was recently named Interim CEO following the conclusion of the transformation committee of the board.

I want to start with the fourth quarter because it shows the direction this business is headed. Excluding the impact of the Credas disposal, revenue returned to growth, up 4% year-over-year.

Adjusted EBITDA increased 18% on the same basis, and our adjusted EBITDA margin expanded to approximately 53% from approximately 45% in the fourth quarter last year. We generated $65.6 million of cash flow from operating activities in the quarter, which was up 15%.

For the full year, our results reflect a company in transition. Fiscal 2026 revenue was $410.7 million, and adjusted EBITDA was $198.8 million, both lower than last year.

The transition is ongoing, and I want to be clear with you about how we are managing it and where we are focused. I also want to acknowledge that adjustments to our Q3 2026 results were required, and those adjustments are reflected in the results we reported on Monday, including in the section titled Q3 2026 Adjustments of our recent earnings press release.

Steve will walk through them, but I want to be clear that our technical corrections do not affect our cash position, revenue, cash flows from operating activities, or adjusted EBITDA. As a leadership team, our focus is clear.

First and foremost, we are operationalizing the business, using automation and AI to make Dye & Durham more efficient and to make our customers more efficient. At the same time, we are continuing to stabilize the company for our customers, our employees, and our shareholders.

Dye & Durham has a broad portfolio of products and services, and bringing automation to how we deliver them is the single largest opportunity in front of us. It is where I am spending most of my time.

Internally, automation is how we are building a lasting, more efficient cost structure. We are automating the manual steps in our fulfillment and operations workflows so that high-volume repeatable work is handled by system and not by hand.

We are standardizing processes across all of our regions so that when we automate a workflow once, the improvement applies everywhere. We are utilizing AI in multiple areas of the business, from resolving customer issues faster and more consistently to improving our internal efficiency.

For our customers, making their jobs easier is what we sell. Our legal workflow platform and our legal due diligence and filing platforms are designed to take manual effort out of how law firms, banks, and enterprises work, from intake and document automation through to embedding registry data and filing capabilities directly into our own systems and AI tools.

The same discipline we apply to our operations is what we are building into our products. You can see the results of this work in our margins.

Fourth quarter adjusted EBITDA margin was approximately 53%, up from approximately 47% in the third quarter and approximately 45% in the fourth quarter of last year. Part of that sequential improvement is seasonal, but the year-over-year expansion reflects a more efficient operating model.

Our cost basis is holding as volumes return. Fourth quarter operating costs, meaning those costs comprised of direct costs, technology and operations, G&A, and sales and marketing, were essentially flat compared to the third quarter at approximately $49 million, while revenue increased $13 million, or 14%.

That is the operating leverage we are building. As revenue grows, more of each additional dollar flows through to adjusted EBITDA.

We also continue to see meaningful opportunity to remove costs from the business. In fiscal 2026, we achieved approximately $20 million in annualized run-rate cost savings, ahead of the target we set out [last?]

year, driven by automation, process standardization, and a more efficient global operating model. We are on track to complete the remaining initiatives by the end of fiscal 2027.

We plan to continue to reinvest a portion of these savings to generate into the product development, automation, and our customers, because efficiency is not only about spending less. It is about putting our resources to work where it creates the most value.

Operational improvement only works on a stable foundation, and we are continuing to enhance ours. For our customers, that means consistent, reliable services and a product roadmap they can count on.

In the fourth quarter, Canada revenue grew 9% year-over-year, and Canada segment adjusted EBITDA grew 13% year-over-year. We have also added resources and new performance measures so we can better track our service levels and drive continuous improvement.

For our people, it means clear leadership, clear priorities, and a culture built on accountability and execution. For our shareholders, it means transparent reporting and a stronger balance sheet.

Strong cash generation remains the foundation of our financial strategy, and strengthening our balance sheet remains a priority for the company. We are in compliance with the financial maintenance covenants under our senior credit agreement as of June 30th, 2026, and Steve will provide more detail on our capital structure.

I'll now turn the call over to Steve to review our fourth quarter and full year financial results. Steve?

Thank you, Todd, and welcome, everyone. As usual, my comparisons to the equivalent periods in the prior year unless otherwise noted, and all figures are in Canadian dollars.

For revenue, for the 3 and 12 months ended June 30th, 2026, revenue was $104.2 million and $410.7 million, respectively. Fourth quarter revenue decreased by $1 million, or 1%.

Excluding the impact of Credas disposal in all periods, revenue increased by $3.5 million, or 4%. The increase was primarily driven by our practice management and payment infrastructure platforms in Canada.

For fiscal year 2026, revenue decreased by $30.1 million, or 7%. Excluding the impact of the Credas disposal, revenue decreased by $24.6 million, or 6%.

This decrease was primarily driven by the market downturn and by lower volumes and pricing on our practice management and data insights platforms, reflecting both customer losses and contract renewal terms. This was primarily offset by growth in banking technology, where the revenue increased by $4.8 million, or 5%, to $108.3 million, and by the LexisNexis Affinity platform.

Now turning to adjusted EBITDA. Fourth quarter adjusted EBITDA was $55.1 million, an increase of $7.4 million, or 15%.

Excluding the impact of the Credas disposal, adjusted EBITDA increased by $8.5 million, or 18%. Adjusted EBITDA margin was approximately 53%, compared to approximately 45% in the prior year quarter.

The increase reflects the revenue growth I just described and the benefit of our cost savings initiatives that Todd has mentioned. Technology and operations, general administration, and sales and marketing expenses decreased by $7.8 million, or 16%, by $5.4 million, or 12%, excluding Credas.

This is primarily due to our operational efficiencies from savings initiatives anchored during the year, partially offset by the continued reinvestment of IT infrastructure. For 2026, adjusted EBITDA was $198.8 million, a decrease of $34.1 million, or 15%.

Excluding the impact of the Credas disposal, adjusted EBITDA decreased by $32.4 million, or 14%. Adjusted EBITDA margins for the year was approximately 48%, compared to approximately 53% in fiscal '25.

The decrease reflects the revenue impacts I described, as well as strategic reinvestments we made to stabilize the business, predominantly in the labor and IT infrastructure, and lower capitalization rates in the first half of the year as we temporarily shifted certain expenses from capitalized projects to maintenance expenses. These were partially offset by operational efficiencies, which we realized largely in the third and fourth quarters.

We executed the fiscal '26 portion of our cost reduction plan, and based on information available today, we have achieved the approximately $20 million of annualized run-rate cost savings all within the year. Net loss and cash flow.

For the fourth quarter, net loss was $19.9 million, compared to a net loss of $29.6 million. The lower net loss primarily reflects lower amortization, depreciation, and impairment, partially offset by higher finance costs, largely from non-cash foreign exchange and fair value movements, and lower income tax recovery.

Cash flow provided by operating activities was $65.6 million, compared to $56.8 million, or an increase of 15%. For fiscal year 2026, net loss was $38.5 million, compared to a net loss of $88 million.

The lower net loss primarily reflects the $81.5 million gain on the sale of Credas, lower amortization, depreciation, and lower acquisition, restructuring, and other costs, partially offset by higher finance costs, lower revenue, and higher stock-based compensation, as fiscal year '25 included a large non-recurring recovery. Cash flow provided by operating activities was $153.4 million, compared to $142.8 million, an increase of 4%.

In both periods, the increase in operating cash flow was driven by higher contributions of working capital and lower taxes paid, partially offset by higher financing costs. For sequential trends, compared to the third quarter, fourth quarter revenue increased by $13 million, or 14%, and adjusted EBITDA increased by $12.2 million, or 29%.

As a reminder, our real estate conveyance and search product lines experience seasonality, with revenue typically peaking in the spring and summer, which fall in our fourth and first fiscal quarters. The sequential improvements in adjusted EBITDA margin, from approximately 47% to approximately 53%, reflects both seasonal and cost efficiencies, as Todd described.

Now turning towards the balance sheet and liquidity. We were in compliance with the financial maintenance covenants under our senior agreements as of June 30th, 2026.

At year-end, we had $29.5 million on our revolving credit facility, or approximately 28% of the facility, well below the 35% level at which the leverage covenant is tested. Our consolidated first lien leverage ratio, as defined in our senior credit agreement, was approximately 5.17 times, which is also below the 5.8 times maximum.

Cash and cash equivalents were $41.4 million. During the year, we repaid the $185 million of convertible debentures that matured in March 2026, and applied $129.8 million of the net proceeds from the sale of Credas to voluntarily prepay a portion of the term loan B, senior security notes, and revolving facility.

As a result, the term loan B has no further scheduled principal amortizations before maturity. Loans and borrowings, together with convertible debentures, decreased from approximately $1.59 billion at June 30th, 2025 to approximately $1.28 billion as of June 30th, 2026.

Now for the Q3 2026 adjustments. As described in our 2026 MD&A, our fourth quarter net loss reflects certain adjustments that were recorded in Q4 2026, but related to Q3 2026.

These reduced previously reported 2026 net revenue by $32.5 million, consisting of $29.9 million adjusted to stock-based compensation, which was primarily the reversal of an incorrectly recorded recovery related to forfeited or expired options of former employees, and $2.6 million adjusted to financing costs. These were technical corrections.

They do not affect our cash position, or reported revenue, cash flows from operating activities, or adjusted EBITDA for Q3 2026. In summary, the fourth quarter showed the operating leverage in this business: revenue growth excluding Credas, significant margin expansion, and strong cash flow generation.

The full year reflects the transition we are working through. As we move into fiscal 2027, we intend to remain focused on cost discipline, cash generation, and strengthening of our balance sheet.

With that, let me turn back over to Todd.

Thank you, Steve. To close, I want to come back to what we are building.

Dye & Durham has valuable products, deep customer relationships, and critical positions in the markets that we serve. What we have not had is a single, efficient way of operating that lets those strengths show up in our results.

That is what our focus on operationalizing the business on a stable foundation is designed to deliver. The fourth quarter gives us early evidence that it's working: revenue growth excluding Credas, margin expansion, and strong cash flow.

There is more work ahead, and the transition will continue through fiscal 2027. Our focus is clear: serve our customers well, run the business efficiently through automation and AI, and strengthen our balance sheet.

I want to thank our employees around the world for their work through a demanding year, and the customers and shareholders for their continued support. With that, we'd be happy to take questions.

Operator?

Hi, good afternoon. I think many of us were surprised to see the year-over-year revenue growth during the quarter.

If you could expand on what drove that within the Canadian business. Can you clarify as well whether there was any contribution from one-time revenue, such as from license renewals or anything like that that might have helped buoy her unusually?

Thanks.

I'll take that. Thanks for your question.

The biggest thing we've seen around that is somewhat of just the market and a little bit of the seasonality. We did have some revenue recognition that was a little stronger in Q4 than in previous times because of how we were recognizing some things.

Excluding Credas, year-over-year, we were up $3.5 million, or about 4%, we were happy with that and really shows things turning around a little bit.

Is the implication then—

Steve, anything to add to that?

I'm sorry.

Go ahead.

Go ahead. You were asking a follow-up question?

No, sorry. Yes, right.

Didn't mean to interrupt. I was going to say, is the implication then that within the Canadian practice management business, for example, that some of the prior churn is subsiding and stabilizing?

Yes, definitely. We're we're seeing quite a bit of I I won't necessarily call it we're we're seeing the the churn decrease, but we're seeing transaction volumes, stabilize to what they they're what they were showing before.

Given that the Q1 is, I guess, pretty well over, any directional commentary you might want to provide in terms of what we should expect for Q1 revenue?

This is Steve. Let me comment on that.

We're right now not talking towards future. We're gonna hold on that for now, and we'll look forward to communicating that to you as available from that perspective.

I would just comment that Todd talked about his operational background. One of things that the team is doing very, very well is monitoring daily, weekly, the churns, the new customers, things like that.

There's a lot of attention by the team, very rigorous attention towards how the business is running in a way that we monitor that very, very closely. I'll just leave those comments to say that I think from an operational perspective, we are in control of what the future lies, but we are not prepared yet or able to yet talk to the future.

Last one for me just in general terms. You alluded to the opportunities for increased automation and cost efficiency in the business.

Mhm. On the revenue side, is there more opportunity as well that you'd call out, or is the focus more on cost optimization while maintaining, I guess, revenue stability from where you are?

I would say traditionally, over the last few months, we've been focused more on the cost side. One of the things that we've been doing lately is really looking more into some new revenue streams, what those might be.

It's too early to really comment on those, but focus is not just on the cost side, but also how we grow revenue and grow this company.

All right, that's helpful. Thank you.

Thank you.

Good evening. I apologize.

I'm kind of jumping back and forth on the call. You may have mentioned this, but the strategic review, can you just provide an update there in terms of was it the change in management, change in board that delayed this process, and what's your expectation in terms of coming to a decision?

The strategic review has been delayed by some of the management changes, probably more than anything else. I think we're close.

I haven't seen an exact date on when that is to be completed, but I do believe it's coming to an end. Definitely the delay was changes we've had throughout the company, mostly in the management level.

That's great. Second question is, echoing Thanos's questions about just churn and attrition, I think we've all had a chance to talk to a bunch of law firms that I think got pressured into their old contracts, especially on the monthly minimums and didn't hit that hurdle rate.

I guess what concessions are you doing to retain the customers, because obviously there's been a lot of churn within the employees as well?

I would say that part of what we've done as we listen to the customers, and really, John Dawson, who's our VP of Sales, Global Sales, really listened to our customers, and trying to address what their concerns are. We've gone away a lot from the minimums on the renewal process, and trying to adjust pricing to be more market-based and I would say more value-based in terms of where they're going.

You may see this too in some of the law firms you're talking to. We have seen some positive interactions as we go forward relative to how we're renewing contracts, without the minimums, without the blanks, and things of that nature.

When you—

I was just going to add on that a little bit. A lot of this comes down to listening to the customers, too, and we've had a lot of customers want to move away from some of those minimums, and some of the things in the contract.

We've listened to the customers and adjusted our business practices.

Just a follow-up to that in terms of away from the minimums, has there been a price reduction on the transactions? It was $1.99, $2.99, has that come down as well?

I'm just trying to get an idea what the margin looks like going forward.

We really haven't adjusted pricing much, maybe on some unique or specific instances, based on volumes and what the customer is with us and the lifespan and all that. We really haven't adjusted pricing.

It's really more looking prospectively to say if you reach these volumes, have these levels, there are some prospective price adjustments from that perspective. We've really changed that concept as we've gone forward.

All for me. Thanks.

Go ahead. I was going to follow up on the margin piece real quick to say on the margin piece, one thing this company has is very, very strong margins.

In terms of Q4 and that, we haven't seen any impact on the margins. We've actually seen some increases on the margins because of the leverage of the cost structure in the company.

Hi, good evening. Thanks for taking the questions.

Maybe just to follow up on one of the earlier questions there, could you just provide us an update on the search for a permanent CEO, and are there any further leadership changes expected at this point?

I'll take that one. Both myself and Steve have interim titles, we are in the search from a long-term perspective on who those people are going to be.

We don't have really any updates on when that will be done, or anything like that. We're always looking at talent and what we have, but no real big plans for significant shake-ups.

No further expected delays then on the strategic review process?

That's correct.

Thank you. Then maybe just another question regarding liquidity.

Could you just provide an update on your outlook for the balance of the calendar year here? There was a disclosure in your MD&A that the additional draw on the new revolving facility will be held in cash as of September 30th, if I read that correctly.

This is Steve. You do have that correct.

We're just being conservative to make sure we've got fully funded the interest payment coming up, things like that. We just want to make sure we have that fully funded with no disruption from that perspective.

Yes, you are correct on that.

Okay. Deleveraging, that's still a priority for the business at this point in time?

100%, 100%. That's part of the cost reductions, part of the aspects in terms of how we run the business and putting a priority on generating the right cash flow to continue to deleverage.

It's 100% a priority.

Okay. Then maybe last question from me, just on the revenue growth side, on the financial technology segment, revenue was fairly flat year-over-year there.

Can you just elaborate a bit on the drivers of that year-over-year growth, or flat growth in the quarter?

Which segment? Say it again.

The financial technology segment.

Todd, if you want to address that.

Yeah. In general, just the business was flat.

I'm not quite sure how to answer that particular one. We saw our volume and our work just stay about the same,

Aaron Kyle (CIBC): I'll pass the line.

Thank you.

I just wanted to thank everyone for taking time out of their day to join us here. We're happy with our results, but we know there's a lot of work to do.

We're going to continue working hard to continue reshaping this business. Appreciate all your support, and appreciate all the employees and their hard work that they've been putting in to really turn this around.

Thank you very much for your time.