All right. Good morning, once again.

Thank you for joining us. Great to see this turnout.

Earlier this morning, Adcore released its Q2 2026 financial results, and today we will be walking you through these results and providing you an update on the ongoing company initiatives. You might see some familiar faces on the call today.

I'm Martijn, Chief Partnership Officer here at Adcore. Joining with me today is Omri Brill, Adcore's CEO and founder, and also Amit Konforty, Adcore CFO.

Also Kobi Arbiv will be here to present some great insights on our AI Studio. For the agenda today: before we begin, we will go over some forward-looking statements you should be aware of while listening to this call, followed by the CEO opening remarks, and the latest innovations on our AI Studio done by Kobi, and then the CFO financial highlights.

Finally, we will conclude with a Q&A session. If you have any question throughout the call, please use the submit a question feature here in Zoom, and we'll get to those at the end of the call.

Before we begin, I will give everyone a moment to review these statements. Please bear in mind when listening to the call today that the management team may use forward-looking statements, which are inherently uncertain in nature.

All right. With that, I would like to pass the floor to Omri for the CEO's opening remarks.

Omri, the floor is yours.

Thank you very much, Martijn, and good morning, everyone. It's my pleasure to discuss the company financial results for Q2 2026.

I'm going to give, let's say, the high level of the results, obviously covering some of the stuff that we've been doing, innovation and working during the last quarter. Obviously, we have some nice presentation to show you on the back of my remarks, and our CFO, Amit Konforty, will dive into the numbers in more details after that.

Let's start with it. Okay.

Just again.

Under View and then Full Screen, you will be able to start the full screen here in the bottom.

Yeah. Sorry.

Yeah. Thank you, Martijn.

Okay. All in all, Q2 was a very strong quarter for us.

Top-line revenue grew by 10%. Gross profit even double up; it's grow by almost 20%.

We see really positive trend, and when we look at the numbers and also comparable numbers, you will see that this wasn't the usual quarter for us. If you look at top-line revenue, it's amounted to $7.2 million in Q2 2026 compared to $6.5 in the previous year.

Again, 10% year-on-year growth. Gross profit $3.7 million in Q2 2026 compared to $3.1 in the previous year.

You can see that the gross profit was almost as strong as Q4 2025, and that's Q4, it's a, let's say, a robust quarter for us. Basically, in Q2, we've been able to achieve almost as strong number as Q4, and that's tell you a lot about how unique in that regard this quarter really was.

If you look at, let's say, quality metrics, what the company considers quality metrics, we can still see that, again, gross profit $3.7, almost 20% year-on-year growth. Cash position still solid of $4 million during this quarter.

Again, you see some seasonality, right? In Q4, the company usually acquire more cash, and then the cash position is going down as the quarter move along.

Again, that's something that is part of, I would say, the normal course of business for the company. To discuss number high level, again, $7.2 million top-line revenue, 10% increase.

Gross profit $3.7, almost 20% year-on-year increase. EMEA revenue grew by 12%, which is solid.

North America saw really nice rebound to grew to $1.5 million, almost 30% year-on-year increase, and that's on the back of, I would say, a soft year that we saw in 2025 for this region. Basically, this is exactly what we anticipated.

We say that we would expect to see some stabilization starting in the beginning of the year and now a nice rebound moving in this last quarter. That's important for us.

If we look at H1, again, very strong start of the entire year. Total revenue almost $16 million, 16% year-on-year growth, that's impressive.

Gross profit grew to almost $7 million, again, 10% year-on-year growing in, I would say, year-on-year. APAC, 23% year-on-year growth, that's massive.

EMEA, 8% year-on-year growth. North America, again, after a softness that we saw in the beginning of, let's say, the year and 2025, 6%, back in positive trend.

All region actually are growing in H1 2026, and that's exactly how we would like to see it moving forward. Now I would like to discuss a bit more technology and innovation.

In the last earning call, we already discussed that we build and shipped the first AI agent for Purposely, the Inbound Agent. Basically, you can think on the Inbound Agent as the receptionist.

That's the guys that answering the phone that coming to the companies, that answering the emails, that can sit in the WhatsApp, on the Facebook Messenger, all different channels, and basically one agent that can do the work of one person, of 10 receptionists, or even a team of 100 receptionists. That's all done by this agent, but it don't stop in just answering question and give information.

It can literally send proposal, it can send payment request, sell tickets. This agent can do everything, that can do an home run, can start a conversation, send a proposal, and make sure this proposal is signed, and it doesn't matter which channel we're talking about.

It's can done by email, it can be done by the phone, it can send you an SMS link with a proposal, everything. That was the first agent was already built and shipped in Q1 2026.

Then we say that we committed to build another two agent during Q2 2026, but guess what? We built four.

We built and shipped the Outreach Agent, which is basically like an SDR. This agent can go over or walk over, let's say, old lead, cold lead, and basically makes them warm again and see if there is a sell opportunity to this database, for example.

Deal Agent started to play when the proposal already sent, that's like a salesperson. It do the follow-up, it makes sure that everything is clear about the proposal, maybe offer some kind of discount, but means basically this agent is responsible for the deal to get closed.

Customer Agent taking is responsibility start when the offer already closed. Basically, make sure that the client is happy, is satisfied, gives him update.

It can do a collection if need, it can do upsell and cross-sell. Everything that is more or less, I would say, post-sale type of activity.

Again, between the Inbound, Outreach, Deal, and Customer Agent, you have your entire sales team. That's not like a slogan, that's what is already up and running and reality on the ground, and we are super happy about it.

Actually, the fifth agent is AI Studio agent, which Kobi going to cover in a bit more detail. I think in Purposely, in six months' time, we did a complete platform, I would say, flip over the platform from a workspace, document type of platform to agentic-first, agent-first platform, which workspace and basically document are now tools in the agent's toolbox.

Basically, it's a complete, I would say, upside down of where the platform used to be. It's not like agents are serving the documents, now basically the documents serving the agents.

That's a complete, I would say, a complete evolution of where the platform is today, and that's a big promising moving forward, and we can discuss it a bit more detail if needed during the Q&A session as well. Now the next thing is AI Studio.

AI Studio is already up, running, and generating some early revenues. We have really good traction and good sign for good market fit about this product.

Kobi will give you a quick demo about the latest and greatest what we've been able to build and ship during the last quarter in AI Studio as well. I think stay tuned for Kobi presentation.

I think that's cover, I would say, the highlights of the technologies that we built or working on during the last quarter. Last but not least is comparable.

Current share price is 15 cents Canadian dollar. We see a very big upside, if you look in EV to gross profit compared to comparable, almost 900%.

That's put the target price at around 1.3 Canadian dollar. It's a big gap from where we are today, and ideally, we would like to see the gap is starting to close.

Basically, the company have high expectations from the future where this company is going to, this high level of innovation maybe like never before in the history of the company, and we are very optimistic of the level of maturity that our product achieved already. I think H2 going to be an interesting time for us, making sure that basically this app are ready, generating revenue, and we can take them to the next level.

With that, I conclude my remarks, and I will hand the floor, I guess, now to Kobi.

Thank you, Omri. Hi, everybody.

I'm Kobi, and I'm leading the go-to-market of the AI Studio app, basically in charge of generating revenue out of the platform. Now, I know in our last earning calls you have seen the app already, you got excited of seeing how cool it is, it actually became even cooler.

In the last month, we actually added some really, really cool and really smart features that we can see from our client that are already using it how excited it is and how it's going to save a lot, a lot of time and a lot, a lot of resources for our partners. I'm going to show you today, I'm going to focus on how we generated a special flow that allows users to create any kind of creative format from a single static banner.

It could be a banner that you created on our platform. It could be a banner that you created by yourself.

In a single static banner, you will be able to generate all the way to motion banners, moving on to a UGC, user-generated content—like influencers on TikTok—videos, and all the way to a TV production, CTV production commercial, only in a single click. Sounds a bit like magic, but it is.

It's already here. It's already working on our platform.

Let me share my screen to show you the full-on example. Actually, I started putting in a brief, a very simple one-line brief saying, "Generate me static banner for a summer promotion sale 30% off on Sunny," it's a cosmetic, sunscreen brand, giving a bit of glow, attractive woman.

The platform generated four different design concepts. By the way, that itself, if someone knows a bit about how advertising studios work, takes about 5, 6 hours' work.

That took me at less than a minute to generate. They generated those four different creative static.

Let's say I'm in love with this one. This one is my favorite.

I'm just clicking here, and with that single click, I can create a motion banner, a UGC user-generated content video, or a full-on commercial. Let's see how it actually looks like.

I'm clicking the motion banner. Let's see the end result.

I'm getting this.

Kobi, maybe you need to share again with sound?

Sorry. One second.

Yes.

Wait. Let's try it again.

Sorry about this. Interested fact about motion banners.

Actually, what we know from research and our own experience that motion banner are able to double the conversion rate of a campaign, reduce dramatically the cost per conversion, and generate just much better results. Again, there's no need to produce, there's no need for a motion designer to generate those things.

A click in a button, anyone can do that. Really, I'm not a designer, and I've done it myself.

Take this motion banner. I want to even challenge it even more.

I want now to go live on TikTok, for example, with an influencers talking about this amazing product. I click user-generated content, and I get this amazing thing.

What it actually did, it took the person, the girl from the banner, generated her as an avatar, and was able to generate a UGC, a full influencer video in a click of a button.

I always forgot to reapply sunscreen, honestly. Now this Sunny SPF 50 stick lives in my tote.

Twist, swipe over makeup, every 2 hours. I always—

We're talking here about a video that usually cost a few thousands of dollars to produce, takes days and finding the creatives and everything. Come on, for me, it's magic.

I don't know what about you guys. Moving on, I want to challenge it even more.

I want to go live now on a CTV campaign, YouTube campaign with a commercial, full-on commercial addressing general audience. That is possible as well in a single click.

Bag, palms, sunlight. Swipe it on in seconds.

SPF 50, glow still going.

Looks amazing, I don't know. Now, let's put it this way: using the platform, it's super, super easy, but this month it became even easier for our users to use it.

We added our AI agent, which is embedded within the Adcore AI Studio app. You can just ask whatever you want: generate a banner, generate a commercial, generate a picture, whatever you want.

You can use the AI agent to do it for you without saying too much, to say us what you want to be in the banner, and the AI take it from there. What?

You're even more lazy than we think. You don't have any strength.

You don't even want to leave your own AI program that you are using. I'm using Claude, some people using ChatGPT, and you want to use our platform through that AI platform.

Simple it is: with our new MCP connector, you can just go in, connect it to ChatGPT, connect it to Claude, whatever AI you're working on, saying, "Create a banner with Adcore AI App Studio," by just add the brand name, what is the discount, and it's automatically generating. With a click of a button, you get a full set of banners, and, of course, from that again, you can create a UGC, a commercial, and so on.

Obviously, bottom line, we've dramatically improved the platform. We're continue working.

Sorry, I'm going to stop the share. There's a lot of things coming in this month and already in development, but as you can see, every single day this app is improving.

There are already active paying clients for the app, and a lot of people are on just on the step of joining in. More to come.

Stay tuned. Thank you.

Thanks so much, Kobi. It's amazing to see how much it developed since the last time we met at the Q1 2026 earnings call, it's amazing progress, and love to learn more on the next update.

With that, we'd like to pass it on to Amit Konforty, CFO of the company, for the financial highlights.

Thank you, Martijn. One second.

Okay. Good morning, everyone.

Before beginning the financial overview, I would like to remind you that the following discussion will include GAAP financial measures as well as non-GAAP results. All amounts will be presented in Canadian dollars.

The second quarter of 2026 showed continued momentum, with revenue growing 10% year-over-year and gross margins improving to 51%. This is in line with the overall first-half performance, which also reflects higher revenue and gross profitability.

Let's review in more detail. For the three months ended June 30, 2026, we delivered revenue of $7.2 million compared to $6.5 million in the same period of 2025, an increase of $0.7 million or 10%.

Gross profit for the three months ended June 30, 2026, was $3.7 million compared to $3.1 million in the prior year, an increase of $0.6 million or 19%. Gross margins for the three months ended June 30, 2026, were 51% compared to 47% in the same period last year.

The increase in margin is due to the increase in revenue and the change in client mix. As for operational expenses, R&D expenses for the quarter were $0.6 million compared to $0.5 million in the prior year.

The slight increase in expenses was primarily driven by increased use of AI-related tools. SG&A expenses for the quarter were $3.7 million compared to $3 million in the prior year, an increase of $0.7 million or 22%.

The increase was mainly driven by payroll-related expenses and was partially backed by foreign exchange rate fluctuations. Operating loss for the three months ended June 30, 2026, was $0.6 million compared to $0.5 million in the same period last year.

Net loss for the three months ended June 30, 2026, was $0.8 million compared to $0.4 million in the same period last year, an increase of $0.4 million. Revenues and gross profits: as shown on the left side of the slide, Q2 revenue grew 10% year-over-year to $7.2 million, with gross profit increasing 19% and gross margin improving from 47% to 51%.

This is driven, again, by changes in client mix. Looking at the first-half results in the middle, we observe a similar trend, with revenue growing 16% to $15.7 million and gross profit increasing 10% to $6.8 million.

This is consistent with the full-year trend on the right, which highlights ongoing annual growth in both revenue and profitability. As for the geographical revenue breakdown for Q2 2026, APAC revenue continued to grow year-over-year.

EMEA revenue grew 12% year-over-year, primarily due to new client acquisition and extended activity from existing clients. North America revenue rebounded after a slower prior year, delivering a 27% year-over-year increase.

In terms of financial position, we had cash and cash equivalent of $4 million as of June 30, 2026, compared to $10.3 million at December 31st, 2025. Total working capital amounted to $3.1 million compared to $5.1 million at December 31st, 2025.

As for the liability side of the financial position, we can see that the company is still debt-free. Adjusted EBITDA: the quarterly non-GAAP results reflects adjustment for the following items: depreciation and amortization, share-based payment, and other unusual and non-recurring items.

For the three months ended June 30, 2026, adjusted EBITDA was $41,000 compared to $155,000 for the same period in 2025. The decrease in adjusted EBITDA was mainly driven by the increase in operating loss.

With that, I will turn the call back to Martijn.

Thank you so much, Amit. With that, we arrive at the Q&A portion of this call.

We've got a couple of questions in. The first one I direct to you, Omri, it's about the gross margin expansion.

The question is, "Gross margin expanded nicely to 51% from 47% year-over-year, with gross profit growing almost twice as fast as revenue. Could you walk us through what's driving that mix shift and how much more room you see keep expanding the margin?"

It's a good question. I would say, A, first of all, it's go hand in hand, right?

If you see top-line revenue growing and gross margin improving, one can expect gross profit will follow, and actually it follow quite nicely, almost double the rate that we saw for top-line revenue. I think we have different revenue streams, and we're focusing on the revenue streams that are more profitable for the company, coming with better margins.

I think that's type of strategy is proving itself, you see a nice, I would say, improve in the company gross margin, and we expect to see this trend carry on onward, I would say, with some exception. Obviously, Q4 can have, let's say, lower gross margin traditionally because of spike in cost of revenues that related to holiday-related spending.

The trend as a trend, I would say, is definitely looking more positive, and we expect gross margin to remain solid.

Thank you, Omri. Following question is regarding North America.

"It's encouraging to see North America bounce back with 27% growth after a softer 2025. What's behind that turnaround, and do you feel good about that momentum carrying into the second half of this year?"

I think maybe Amit can shed a bit more light, but I think most of the growth that we saw in North America are coming from actually existing client activity, in improving this activity, I would say, and that's something that is very encouraging for us. We'll see, let's say, the momentum is shifting, and these clients are now growing again, growing the spend, and basically that's always a positive sign.

I think this is one thing. Also bear in mind that moving towards and seeing H2, we still have better numbers to present, because the comparable should be working in our favor, soften 2020 2025.

I think, yeah, we are more positive regarding North America, and we expected to see this type of behavior. We expected for to see it stabilize and then to see it going back into, I would say, growing trends, and I'm happy that we've been able to achieve it in Q2, and we are hoping to preserve this type of momentum carrying into the second part of the year as well.

Great. Thank you, Omri.

The next question is about our AI development and development in general. "You committed to three autonomous agents by Q2 and actually delivered five, which is a nice execution story.

What kind of early customer feedback or usage signals are you seeing from Purposely's agents and also the creative agent on the AI Studio?"

Okay. If we miss, we might as well overdeliver than underdeliver, I guess.

I would say if we're talking about Purposely, obviously we have four different agent now running live: Inbound Agent, Outreach Agent, Deal Agent, and Customer Agent. We see a good, I would say, market fit from early beta clients, they are excited about what this agent capabilities are, what type of issues they can solve for their organization.

I think, in general, we see, okay, there's definitely place for the solution like Adcore is building in the market, and actually it's quite a unique solution in the market because maybe everybody more or less can, I would say, build an AI agent nowadays, but let's say AI agents that is integrated to the different workspace and platform and document and can generate revenue from A to Z just from visitors, that's quite a unique sell story that only Adcore possess, and I think that's put us in a very different, I would say, position from other vendors in the market today. AI like Purposely, I'm definitely happy from the early reaction that we are getting.

Maybe Kobi can elaborate a bit more about the reaction that he see from early users of AI Studio with regards to the agent.

Of course. As far as the AI platform in general, we have already started the go-to-market.

We actually have a few, quite a few working partners already. The feedback, of course, it's about saving time, saving resources.

I just finished a call actually with one of our partners who are using the connector to Claude actually with our agent, and she's saying that it's never been easier for her to generate creatives. She doesn't need to count on her agency anymore to send her deliverables.

They don't need designers. They don't need to pay extra.

What they're actually paying is less than a day work of a designers, and they're getting a full stack of creatives that can take a full month to work on. Obviously, no complaints, only really just compliments and how good the platform is right now.

That's the best type of stories, right? The client success story that are happy with it using the agent.

I think that's exactly why we are working so hard building this type of solution for the client to give us this type of feedback, so that's amazing. Thank you for sharing, Kobi.

Thank you.

Amazing. Thank you, guys.

The next question is probably more for Amit as it's a financial question. The question is, "You mentioned the cash flow and working capital declines largely seasonal and should reverse in H2.

Could you please give us a bit more color on the expected timeline for that recovery?"

Definitely. Basically, historically, Q4 is the strongest quarter of the year for the company, we do expect to see a recovery.

The decrease that we see now in H1 is partially payments for Q4 of last year. It's something pretty usual in the company in this one.

All right. Thanks for elaborating on that.

The next question, either for you, Amit, or Omri, it's about the efficiency plan rollout. Omri mentioned there's plans for 15% to 20% OpEx reduction plan.

Question is, "Could you share more on the expected timeline, if there's any one-time implementation costs, and which areas of spend were primarily be targeted?"

I think the biggest, I would say, line item of expense for the company is obviously employee costs, right? That would be the first place that we need to tackle.

I think we saw some headwind with regard, and Amit mentioned it, currency exchange fluctuations that basically didn't work in our favor during H1 2026, and that's something we need to take actions. I think we are planning some employee cutoff or reduce the numbers of employees, that's one.

Looking at other lines of expenses the company are having, whether it's AI token and other things that basically consuming a large budget of what the company is spending right now. I think, all in all, in terms of timelines, we want to do the majority of, let's say, cut effort or saving effort during Q3 2026.

Basically, we might have some carry-ons, but the idea is to enter Q4 2026 as far leaner and slimmer company, with, I would say, ideally, SG&A cost drop by 15%, 20%, that's the goal for the company.

Great. Thank you, Omri.

I think we have room for one or two more questions. The next question is about balancing growth and profitability.

"Omri, you mentioned to keep adjusted EBITDA positive while simultaneously investing in a fairly ambitious agent buildout. How are you thinking about that balance between funding innovation and protecting profitability as you head into the second half of 2026?"

That's actually a very good question because, obviously, there is arms race almost now between different AI companies, right? Developing the AI agent, making sure that you grab as much land as you can, and I think that's not the time to slow down or to stop, that's definitely.

I think definitely, definitely, we need to move, and we are moving fast. We already proved it, right?

We talked we're going to build and ship three agents by the end of Q2. We build and ship five different agents, and so we definitely prove already that we know to execute and execute fast, which is great.

I think, but that's one side of the story. The other side is that, like you say, we need to monetize the company financial position, making sure that we are not overspending, and basically one keep another eye open to that front.

I think there should be balance between the two, and the company already proved, historically, that we know how to do it, and we know how to do it quite good. I think I'm pretty confident, I would say, that we can be able to continue to balance between these two, I would say, conflicted sometimes efforts.

Great. Thank you, Omri.

That brings us to the last question for today, which is the first-half revenue grew 16% and the gross profit grew 10%, strong first half overall. "How much of that momentum do you expect to carry through the second half, which you flagged as seasonally your strongest?"

That's another good question. I would say, A, definitely very strong start of 2026, right?

Top-line revenue, mid-line revenue, all of them moving in the right direction, we definitely see some tailwind for that regard. We, like I mentioned before, we had some headwind regarding currency exchange and which reflected in increase, of course.

I would say the plan is to go into Q4, which is the most important quarter for us, as a slimmer company, but maintain the same momentum. If we can balance the two and if we can achieve the two, continue growing top-line and mid-line revenue, but reducing the SG&A cost, then I think that should be a story to tell, right?

Put the company in a better position moving forward.

Absolutely. Thanks so much, Omri.

We covered a lot, both on the slides, the presentation by Kobi, and also the Q&A session. Do you have any final closing remarks for the audience today, Omri?

No, I think, all in all, the company been able to present a robust quarter. Let's say, again, as robust almost as Q4 2025, and that's telling you a lot.

A lot of innovation going on. Also, the level of maturity of both of the flagship app, which is Purposely and AI Studio, is far better.

AI Studio already generating real revenue, and basically we have a very strong and robust GTM regarding this app. Purposely, early a beta user, but again, reach a level of maturity which all the AI agent are active and ready to go to market.

I think we are definitely entering H2 far stronger than we are started H1, which is, obviously, a good place to be, right?

Amazing. Thanks so much, Omri.

Thanks, Amit. Thanks, Kobi, for your contributions today.

Most of all, thanks for everyone joining this call. With that, we conclude the earnings call today, and looking forward to see you next time.

Thanks so much, and have a great day.

Thank you, everyone.

Thank you.