Good morning, everyone, and welcome to NTG Clarity's Q2 2026 earnings conference call. My name is Ali Farook, analyst at NTG Clarity.

On the agenda for today's call, we'll start with management's prepared remarks on our financial and operating results, on the geopolitical situation, and our 2026 outlook. We'll be giving our financial and operating results for the three months ended June 30th, 2026, starting with an update on the geopolitical situation and our 2026 outlook.

We'll then have a Q&A period answering questions from covering analysts and investors. Note that the full published report with audited financial statements, notes, and management discussion is available on SEDAR and our website at www.ntgclarity.com.

This presentation aims to highlight and summarize the key information already reported there. We will be posting both the slides and the recording of the presentation on our website following the call.

Make sure to subscribe to our mailing list on our investor page on our website to get notified when those are available. If you have a question that does not get addressed, please reach out to [email protected], and we will get you an answer after the call.

With that said, I'll be welcoming management for our remarks shortly. First, I'll start with a quick disclaimer.

Certain statements in this presentation other than statements of historical fact and forward-looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the company to enhance operating results are necessarily subject to risks and uncertainties, some of which are significant in scope and nature.

These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate.

Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice.

The company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change. In this presentation, we also make reference to non-IFRS or non-GAAP financial measures that management believes are useful supplemental measures, but not alternatives to net income and operating cash flow.

Please see the non-IFRS measure section towards the end of this presentation, our press release, and our MD&A for details and reconciliation of non-IFRS measures to IFRS measures. With that, I'd like to invite Adam Zaghloul, Vice President, Strategy and Planning, to begin his remarks.

All right. Thank you very much, Ali, for the introduction, and thank you to everybody who is tuning in for our Q2 2026 earnings conference call.

I want to start off the call before I get into the financial and operating results. I want to announce that we are, unfortunately, withdrawing our fiscal 2026 financial guidance, and that includes both the $90 million revenue floor and the 13% to 16% adjusted EBITDA margin range.

We're not going to be able to issue any sort of replacement guidance at this time. The outlook that we posted towards the beginning of this year assumed that clients would continue to renew and release their contracted project work throughout the rest of 2026 at the pace similar to what we've seen historically.

While revenue was stable through March, April, and May, in June, clients definitely slowed their project releases and decision making, and June billings were below our expectations. The outlook was last reaffirmed in late May before that observation had been taken place.

The geopolitical situation in the Middle East is definitely the driving force behind this, and I'll speak a little bit more about that in a moment. Without any sort of clarity on when this conflict is going to be resolved and when the Saudi economy can return to growth, really it's hard for us to forecast our customer needs and our customer behavior.

Some clients have continued full steam ahead on their plans or even renewed and even expanded their engagements with us, but others have taken a much more cautious and conservative approach. Our profitability is really dependent on the utilization of our resources as well as top-line revenue, any change in that sort of revenue profile really has a disproportionate impact on our adjusted EBITDA margins and our profitability.

That revenue trend throughout the rest of the year will be the main driving force behind our profitability, our adjusted EBITDA. I also want to highlight that while there was a little bit of a downtrend in June, really subsequent to quarter-end in July, we had much stronger revenue billings and collections.

The reason behind withdrawing the guidance really is due to the uncertainty and not being able to put forward guidance that we can confidently stand behind and not because we're seeing a consistent downward trend. I just wanted to make that clear off the top.

I'll talk about the geopolitical situation specifically. Basically, in late February, the conflict escalated and crude exports from the Gulf region were pretty severely disrupted.

The initial concern was a direct operational impact to our own Saudi work, but that did not happen. Our delivery teams really operate out of Egypt primarily, but even the ones in Saudi are operating outside of the affected areas and we've been able to continue our work without interruption.

What has happened is really the fiscal picture has changed. Saudi oil activities fell about 25% year-over-year in the second quarter and Saudi real GDP fell by almost 5%.

Now, we're not technically in the oil business, but there really are few businesses in Saudi Arabia that are immune to this kind of impact. Non-oil activities actually grew in Q2 about 0.6% year-over-year, but that's down 2.9% in the first quarter and it really was a down on a sequential basis for non-oil activity.

Oil receipts fund the government and government-affiliated technology budgets that we serve. Really, these oil receipts set the large budgets that that our customers are setting for technology and is usually a tailwind for the economy that we've seen really in recent years.

When those receipts fall like we've seen this year, our customers definitely get more cautious with cash. They extend their projects and payment timelines and we've seen both of that in both of our revenues and collections this quarter.

We're still receiving renewals and new purchase orders with our customers, and we're still receiving customer payments as well. A third quarter specific purchase orders to date are about $33.4 million.

That's more than the whole of second quarter by a large margin. Both revenue and collections were materially higher in July than in June as I mentioned on the last slide, too.

What we're seeing is a much more cautious approach to forecasting, both the duration and the possible conclusions to the conflict in the Middle East. With that level of uncertainty really around, we don't think it's prudent to issue an updated guidance at this time.

We'll move over to the financial results here. Q2 revenue was $20.1 million, up 6.4% from $18.9 million in Q2 2025.

In one sense, it's reassuring to point out that NTG's revenue are growing year-over-year faster than the Saudi economy as a whole. The first half revenue was $41.4 million, up 7.3% year-over-year.

That is a first-half record for the company and another quarter of last 12 months' revenue growth. However, revenue declined by about $1.2 million sequentially from Q1 to Q2.

Back in Q1, we had a decline as well, which I had attributed to basically the slow down around the holiday season, Ramadan and Eid al-Fitr. We guided back in Q1 that revenue would recover a little bit back in Q2 and we'd return to sequential growth.

That didn't materialize, really due to a slowdown in the conversion of purchase orders issued against both our framework agreements and renewals and new work, really in the last month or so of Q2. Now, I mentioned before a couple times now revenue in July was materially higher than our June revenue, and we really are maintaining a strong base of work with our existing customers and even getting new work from new customers.

I want to stress that our withdrawal of guidance really is due to the uncertainty around the situation and the difficulty in forecasting. Also gross margin for the quarter was 33.5%.

That's up from 33% in Q1, but it is down year-over-year as we've seen customers push for better pricing terms with the conflict backdrop, really. We'll move on to profitability.

Q2 adjusted EBITDA was about $5,000, effectively 0% margin. That compares to about $800,000 in Q1 of 2026, and that compares to about $3.8 million in Q4 of 2025.

Really operating leverage is the main driver behind our adjusted EBITDA. Across these three quarters, our total cost base, so that is the cost of sales plus G&A plus the sales and marketing, really were effectively flat.

You can see $20.1 million, $20.6 million, $20.2 million. Really over the course of those three quarters, we saw a little bit of a revenue decline from $23.9 million in Q4 down to $20.1 million in Q2.

That $3.8 roughly million dollar revenue decline against a flat cost base is really the entire movement in our adjusted EBITDA. At the end of the day, over about $1 million per month of salary costs are currently sitting in G&A because those staff are not assigned to billable work with our customers.

When those resources are assigned, they're reclassified to cost of sales and there's no incremental expense for us to begin billing revenue. It's cost that we are already carrying.

That really is consistent with what we've seen over the last two or three quarters where deleveraging of our revenue really impacts the adjusted EBITDA line basically on a one-to-one basis. Also talk about net income.

Net income for the quarter was about $2.3 million and that figure includes approximately $1.8 million of tax recovery from the conversion of our Saudi branch into an LLC. That's basically to avoid having to pay double tax in Saudi Arabia and in Canada.

That is really nonrecurring, it shouldn't be taken as any sort of operating performance. We also benefited from foreign exchange a little bit in Q2 and that is also backed out of our adjusted EBITDA as well.

Now, our Q2 profitability really begs the question why are we carrying so much non-billable delivery capacity? For that we have to explore our order flow.

I mentioned Q3 saw a great deal more POs than Q2. Q2 purchase order announcements was about $12.3 million.

Third quarter announcements to date were about $33.4 million. That includes some of the first purchase orders against that new framework agreement that we signed in March with a large real estate developer in Saudi Arabia following basically their full proposal and evaluation process.

Engagements like that really start with a relatively small placement and grow over the course of their lifetime. Our thinking is guidance effectively needs us to be able to forecast when work is going to be billed.

Holding our capacity really only requires a view on cash flow and whether or not the work exists in the first place, right? We've signed these multiyear agreements with purchase orders still to come.

We've got this $33.4 million in purchase orders announced over the course of the quarter. It's important to note that our backlog of purchase orders and contracts on hand has actually grown from $73 million in Q1 to about $80 million where it sits today.

That's definitely a positive leading indicator on our future work. That's really what gives us the confidence to maintain our current delivery capacity.

We're winning engagements with some of the largest companies in Saudi Arabia. These are ones that we have experience growing from a small amount to even tens of millions of dollars annually.

They still have long-term robust digital transformation roadmaps ahead of them and we're eager to work with them on that. Now the macro environment is really undoubtedly negative right now, and that's driven primarily due to lower oil revenue and the sort of follow-on impacts onto the economy because of that.

The region's ambitions to modernize, digitize, diversify its economy really have not gone anywhere. We really believe that our on-site and offshore delivery models can help deliver on some of these roadmaps even if the timelines have been shifted slightly.

I'll turn to the cash flow now. Q2 operating cash was an outflow of about $4.6 million.

Again, we're seeing our customers push billing really to the extent that they're allowed to under the terms of their contracts. That includes delaying the release of invoices, which we see reflected in a little bit of growth in our contract assets line, unbilled revenue line, recently.

As of now, management has begun working with clients directly in sort of a focused effort to speed up those collections. As a result, subsequent to quarter-end in July, we collected about $8 million Canadian, and that's approximately half of Q2's total collections.

That includes also the majority of accounts receivable aged over 60 days as of the report of Q2. Our focus is definitely on repeating that result every month until the end of the year to sort of moderate that impact on our working capital there.

That brings me to where our attention is for the rest of the year. First, just doubling down on the point from the last slide, we want to convert the receivables, focus on converting those receivables.

Collections move really to escalation at the client level, direct executive negotiations, including new contracts. We want to offer a little bit of early payment incentive on future work.

The key metrics that we're going to be keeping our eyes on are really how that account will move, days sales outstanding, how much of receivables from last quarter we're going to collect in this quarter, for example. Our second focus is going to be on converting the order book and returning to our growth trajectory.

We're going to be watching purchase orders received. We've definitely got good signal so far in in Q3.

Really watching to see that total contracted backlog grow, which so far, it's a positive signal that it's grown from Q1 to Q2 as well. Our operating model is proven in the past.

Our fixed costs are there, accelerating revenue to really get that sort of one-to-one profitability leverage really is our top of mind. Our last focus, or our last top priority, is hold our expenses against our cash, right?

We're keeping our delivery capacity in place as I mentioned, and we're reviewing it against cash every month. If collections don't support that sort of cost base, or if any of our client negotiations sort of stall, we're going to have to explore cutting costs for sure.

We're going to watch the cost base against revenue and cash collections really every month. That brings me to the end of prepared remarks.

I want to thank you for taking the time to listen to it. We're now going to open things up to a Q&A session.

We're going to start with questions from our covering analysts and then move on to a few questions written in from investors ahead of the call. Again, like Ali mentioned at the beginning of the call, if you don't get your question answered, feel free to reach out to me.

My email is on the screen, [email protected], and I'll be happy to respond to you via email. I think we'll get things started with covering analysts.

I see Ammar Ezzat from Canaccord Genuity is on the line. Ammar, are you ready for any questions?

Hi, good morning. Can you hear me?

Yes. We hear you.

Good morning, Ammar. How are you?

Very well. How are you, Adam?

Adam, I want to start with the guidance. Last call here, you guys went from characterizing, I guess, the $90 million revenue guidance as a floor that was largely supported by POs already in hands.

I do fully understand the geopolitical situation and the elongation of cycles, but I'm wondering what specifically changed in June relative to May? Then, conversely, can you speak to why, in your opinion, July improved materially?

That's definitely a really good question and it's worth exploring a little bit more. Really what we saw happen in June was we were running a relatively consistent revenue rate, let's say, March, April, May, coming off of the holidays as we had expected.

When we think about our revenue or our revenue guidance, let's say, it's based off of the POs and contracts that we have on hand, but also renewals that we have a very high confidence in converting. Definitely in June was when a decent amount of let's say renewals came up for conversion.

Like I was mentioning maybe a little bit briefly on the call, definitely what we saw happen in June as that sort of Q2, let's say, reduction in oil activity, reduction in revenue in Saudi happened was our customers were more hesitant to renew their engagements at the same level that it was before. I think it's important to stress that this isn't a huge trend that's across all of our customers.

Some customers are continuing ahead with their roadmaps, they're continuing their engagements, they're expanding the sizes of them. Other ones either renewed at a rate less than we had seen historically or took their time to renew so we couldn't recognize revenue or bill some of our resources against them.

Thankfully, coming into July, we did see some of those renewals come through. I think some of those POs that we announced had heavy renewal component, and we were able to get those resources billable again and see the revenue rebound that way.

I just want to stress that the withdrawal of the revenue guidance especially really is in the face of uncertainty and not necessarily because we see a sustained downtrend going forward. That's a really good question.

Thank you.

Okay. Maybe to follow-up on that last point you made.

You guys announced the $33 million of POs in Q3, which sounds very strong relative to Q2. Help us understand how much of that is truly incremental work versus renewals or replacements of expiring POs?

Then, how much would you expect to actually recognize as revenue during Q3 and 4, or is that harder for you guys to estimate at this point?

It's definitely not something that I'd give a precise number on. I understand for modeling it's a really important point to get some clarity around.

How we think about it internally is these PO announcements that we put out typically are on the duration of about 1 year. Any POs that are going to come around the midpoint of the year, you can very roughly assume that about half is going to be billed, there's basically going to be a flat billing profile to it.

About half is going to be billed in the remaining year and half the subsequent year. What we also try to do with those releases is break out how much of it is new work versus customers renewing and expanding their engagements, so that can sort of be built into the model as well.

Just to take an example of the POs that were issued with this release, at the same as the quarter, it was about $1 million of truly new work and the remainder being renewals and expansions of some of our existing customer contracts. I think that's the best way to think about it.

Then. On your last point on the last slide, I fully understand that you guys have a strong backlog, and this might be a conceptual question, but what is the trigger for you guys deciding that you've waited long enough and need to rightsize the cost base?

Is it a specific cash balance, utilization level, or a time frame? Help us think of that, please.

I think definitely it's important to balance the sort of view of new work coming down the pipeline with just the realities of the cash flow as it stands right now. The balance that we're always trying to strike is we've put a lot of time and effort into recruiting the talent pool that we have right now.

Certain resources have been instrumental in NTG's growth and have proven themselves with many client engagements, and a lot of our customers especially are looking for this type of senior experienced resources to work on their engagements really for the long term. What we're constantly looking at is the cash balance that we have at the end of each month versus the bench staff that we have.

Definitely right now at $1 million per month, I don't think we'd want to be able to go much higher than that, we've done a pretty good job keeping our cost base staying relatively consistent, that is about $1 million per month of incremental resources waiting to be rolled out. It is always going to be a combination of looking at what customer conversations we have coming down the pipeline as well as new POs that we know are going to be rolling out in the relatively near future before we can make that decision, cuz the goal is not to, let's say, go into debt to pay for these resources or dilute shareholders to pay for these operating overhead.

It really is a balancing act of taking a look at operating cash flow, and can we support the sort of gap between now and when we expect these contracts to go. Cuz at the end of the day, I think it's important to point out our delivery art staff, our technical staff, they are probably NTG's core assets, right?

We don't want to put ourselves in a position where when activity resumes, which we're already getting the leading indicators that there's the possibility for that to happen now, when activity resumes, we're not in a position to take advantage of the growth just because we wanted to save the cash flow or profitability of any one individual quarter, right?

Fantastic. Maybe one last one.

Appreciate the color you guys gave on collections. Thank you guys for saying 8 million of collections in July, and receivables declined by more than 2 mil as at July 31st.

Wondering if, given that we're now end of August, can you give us an update on where August collections and where the receivables stand and cash?

I think that's definitely a good question. The reason behind why July is a good example is just as typically, right, at the end of the month is really when we see a lot of the invoices go out and the cash collections come in.

It really is less of a useful marker to just say take a look at August 15th or August 21st cash balance and receivables balance, just because I think it's pretty similar in any line of business. The end of the month really is when things are in a much more stable position.

I take your point, and I think it would probably be useful going forward over the next few quarters to give more regular updates about cash balances, but I think they would have to, going forward, be as of the end of the month.

Thanks. I'll pass the line.

Appreciate your answers.

Thank you, Ammar. Appreciate you hopping on the call.

Okay. We'll move forward, and I see that we have Nick Cortellucci on the line from Atrium Research.

Nick, if you're ready, I'll hand it off to you.

Hey, Adam. Can you hear me?

Hey, all good. How's it going?

Good. Yourself?

Very well, very well. Thanks.

Thanks for answering my questions. The first thing I want to ask about was, what do you see as baseline margins?

Looking back to 2025 or even going back to 2024, what do you see as kind of normal for you guys?

That's definitely a good question, Nick. Thanks.

I think, historically, what we had put forward as our goal, we can start at the gross margin line and then move maybe to the adjusted EBITDA, is sort of that mid to high 30% gross margin range. Then, ideally, the bottom line being in, say, the mid-teens, even getting up to 20% in an ideal world.

That's what we saw really as we exited 2024 into 2025. This is definitely key to the reason why we're withdrawing our guidance and not giving an updated range at this time is especially the profitability is hugely dependent on that sort of incremental revenue profile.

Like we saw really over the last two or three quarters, a decrease in $3.8 million in revenue roughly had the exact same amount of impact on our adjusted EBITDA line just because the cost base staying the same. I think, maybe longer term, those are goals that we'd want to get back to.

In the short term, we definitely can't give any sort of guidance for the next few quarters. That is because, A, we're carrying that cost base to prepare ourselves for more stability and when contracts hit the ground again, but also, B, as I mentioned in the presentation, even on the gross margin line, we're sort of seeing a shift from that mid to high 30% range really towards the low to mid 30% range because of the pricing that customers are negotiating for in lieu of the sort of cautious approach to cash that they're taking in the region right now.

I would say we've got long-term our work cut out for us, but, of course, we can't issue any sort of near-term guidance or guidance for this year.

Got it. Okay.

Then, just on the G&A, because it increased quarter-over-quarter. Maybe just what's been driving that?

I know I see that the COGS and the S&M declined, but just maybe a bit about the G&A.

Definitely. When you take a look at our cost mix, there really is a lot of carryover between, say our cost of sales and our G&A.

What typically comes along with a reduction in revenue is a movement of resources from the cost of sales line into the G&A line. To the extent that maybe it's been G&A has been up, cost of sales has been down, it largely is attributed to that sort of dynamic of non-billable resources being in the G&A.

That's part of the reason why over the last few quarters when we've been talking about our results, we've been breaking it out to show what that total cost base is. Basically, what is our, for all intents and purposes, our staffing costs, which has remained relatively consistent over the last three quarters.

All right. That makes sense.

Okay. Then maybe just more conceptually, outside of the Middle East conflict, have you seen any clients building their own solutions with AI or cheaper competitors come into the scene?

Has that played a role at all with withdrawing the guidance or is this solely based on the Middle East?

That's a really good question. For sure, right now, it really is not so much a competition situation as much as it is geopolitical expense-related considerations from our customers, right?

None of our customers have come to us and said, "We can do this with AI better," or "A competitor can do this better, we're going to not scale our contracts," or "We're going to not renew our contracts." Really, the cash impact from the impact to the oil market has caused our customers to look for cost savings on really every line item, and that, of course, includes software development and the digital transformation roadmaps.

I would say, as of right now, really is more of a geopolitical impact and our experience hasn't been that competitors are coming to the scene or AI is coming to the scene. I just maybe echo that by saying, yes, revenue is down this quarter, but we have not had any customers cancel an engagement, pause an engagement, anything like that.

We still have our existing customer base, albeit maybe the amount of work has slowed down or been extended over a longer period of time.

Understood. Okay.

Those are the only questions for me. Thank you.

Right on. Thanks, Nick.

Appreciate it. All right.

That concludes questions from covering analysts. I'd like to invite Ali back to the stage to start us off with some questions written in from investors ahead of the call.

Whenever you're ready, Ali.

All right. To get these questions started, we have a question written in from David, a private investor.

To achieve success, leaders often make significant personal sacrifices. While not expecting extreme measures, what more are the two major owners of NTG Clarity, Ashraf Zaghloul and Christine Lewis, willing to commit or sacrifice now and in the near future to drive success for the company, themselves, and their shareholders?

That's a really good question. Thanks, David.

Definitely, just taking a look at the turnaround that we've experienced over the last seven or year seven years or so, starting in about 2019, I think the management team has pretty well proven that they're willing to put skin in the game. They still own about 36% of the shares outstanding.

They've participated in equity infusions multiple points in time over the last, say, seven years or so, and also infused debt into the company at extremely favorable rates, well really just passing through the expenses that they incur themselves to hold that debt. That still sits at about $5 million on the balance sheet.

Management really believes, I would say, in the company, in market in Saudi Arabia, and in our ability to serve the digital transformation sector with both our on-site and offshore resources, and I think, going forward, we'd see them continue to keep their skin in the game that way. Yeah.

All right, great. Our next question is also written in from David.

"Could you please discuss the recent LinkedIn videos regarding NTG Clarity being back and provide some context?"

Right on. I know we like to focus on our key markets in the Gulf region, in the Kingdom of Saudi Arabia, but we also have a more moderate presence in other regions like North America that we find we're equally able to serve with our existing delivery infrastructure and our software products that way.

Recent videos, a few of which I've starred in actually at this point, have basically served to keep engagement with that market as well as do a little bit of marketing and outreach. There is no material announcement to be made in terms of new progress in those markets at this time, though.

Okay. Then we have the next couple of questions written in from Peter, a private investor.

Can you please elaborate on the gross margin decline? Are customers expecting any AI-related efficiency savings to be passed onto them?

How should investors think about the durability of margins long term?

Definitely. That's a good question, Peter.

Thank you. I would say, similar to what we were talking about with Nick, what we haven't seen so far is customers coming to us and saying, "We can do what you do with AI.

We should get a better price," or "We should give us a discount because you're using AI," anything like that. Really, the decrease in gross margin is seen as a knock-on effect of the geopolitical situation impacting cash flow in Saudi Arabia, just due to lower oil exports, and that trickling down to really our customers' budgets and digital transformation roadmaps.

They're looking for savings on every line item of their expense sheet, and that includes our kinds of services. Right now, I would say the gross margin situation is completely attributable to the geopolitical climate and less so any sort of AI or competition or anything like that.

All right. His next question: "Do you have a sense for whether the war is causing permanent damage to demand for digital transformation in the Middle East?"

That's a good question to keep in mind, for sure. I would say no.

No permanent impact to demand for digital transformation in the Middle East right now. I think what we're seeing is a sort of point-in-time disruption just from the recent conflict.

All of our customers still have their digital transformation roadmaps out in front of them. Maybe they'll be over a longer period of time and they'll need less resources in the short term.

Still, we have complete confidence in the sector as a whole. Just to talk a little bit more, the Saudi market had a little bit of a decline in Q2.

Non-oil-based companies actually grew, although a relatively small amount. We have every indication from our customers that once a more stable situation is achieved, we're going to continue our level of work and maybe even see the growth that we've seen in the past resume.

I think that's sort of echoed by, so far in Q3, we have very good leading indicators in terms of revenue collections rebounding, also that $33.4 million of POs that we've received in Q3 so far to date. We still maintain a pretty solid reputation with our customers, and we're really looking forward to continuing to put forward this compelling model of offshore and on-site software development services for them.

All right. Moving on to his next question: "To what extent is the top-line softness driven by company-specific execution issues/competition?"

That's a great question, for sure. I would say the top-line sort of deceleration that we saw over the last couple of quarters, I would say is, again, attributable to the geopolitical situation in the Middle East right now.

To the extent there's company-specific performance considerations, it really is the decision to keep that delivery capacity intact as we sort of ride out the instability that we've been seeing. That itself has nothing to do with the top-line softness.

Again, what we're seeing is customers come to us with maybe longer-term plans than they had initially thought about, maybe a slower decision-making cycle, slower to renew their engagements, maybe a little bit more hesitant to engage them. That really is the driving force behind the sort of softer revenue that we've seen the last couple of quarters as opposed to any sort of internal considerations, performance, or competition that way.

All right. Moving on to the next question: "Please provide an update on how AI is affecting NTG, both from a cost and revenue perspective."

Right on. Thank you.

Think about AI on the cost side, I always like to point to the efficiency gains that we're getting from rolling out those early-stage projects of developer productivity tools, say Claude Code and Cursor. Definitely makes life a lot easier as a developer just leveraging those tools.

We get a few benefits on the cost side. On the revenue side, I think is probably we're most excited for.

We've had a couple of updates over the course of Q2 on our AI software platforms, first of which, Peaktofy, you can think about it as an AI-powered ERP implementation companion tool. We've signed early-stage partnerships with about four Gulf region system integrators to start using the Peaktofy product.

We definitely have a line of sight on bringing that product to market and seeing some revenue come through in the future. Also, our TestingFlare product, our AI-powered software testing software product, is in enterprise pilot project mode right now with some customers.

We also look forward to those turning over into full engagements in the near future as well. We're very excited about what the prospects for our AI-powered products are as well.

All right. Moving on to the final question.

We kind of touched on it in the presentation, but just to reiterate: "Given that the war in the Middle East has been going on since February, why, all of a sudden, has there been a drop-off in demand only recently?"

That's a good question. I think it definitely is worth just touching on for one more time.

I think when the conflict started off in February, a lot of people were expecting, pricing in a quick resolution, relatively painless. Really, I think people are coming to the recognition, especially in Q2 with oil activities down to the extent that they were and as a little bit of a overall Saudi GDP contraction, that this might be something that they have to plan for in the medium term.

I think that's really the reason why we saw that sort of mid-year hesitation in renewal and the expansion of some of our contracts that way. Again, I just want to reiterate that we don't necessarily foresee a complete downward trend right now.

Again, July, performance was much better than June. Collections were higher.

Revenue was higher. It really is the uncertainty in the region that's causing us to withdraw our guidance and not because we see anything too detrimental coming down the pipeline.

In the medium to long term, I would overall see this sort of conflict as a net tailwind for the digital transformation sector that we're serving. I think it's really becoming apparent the extent to which the Saudi economy relies on oil and gas exports, and if anything, the current situation only strengthens the need for a diversification of the economy in that way.

That's all the questions I have written in.

Okay. Thank you, Ali, and thank you to our analysts and to all the investors who wrote in questions ahead of the call.

Again, if you have any questions that didn't get answered over the course of this call, feel free to reach out to me. My email is [email protected].

I'd be happy to respond via email. Really want to thank you for tuning in to the earnings conference call, and I'll look forward to discussing some more results with you as we look forward and continue through Q3.

Thank you very much, and take care.