Tribe Property Technologies Inc. ($TRBE)

Thank you, everyone, for joining us. My name is Sitan Sani, and I'll be the operator for today's call. Welcome to Tribe Property Technology Fiscal First Quarter 2026 Financial Results Conference Call. This call is being recorded. We will be having a question-and-answer session at the end of the call. On our call today, we have tribe CEO, Joseph Nahla, and the company's CFO, Scott Ullrich. I trust that everyone has received a copy of our financial results press release that was issued earlier today. Listeners are also encouraged to download a copy of our financial statements and management discussion analysis from SEDAR. Please note portions of today's call, other than historical performance, include statements of forward-looking information within the meaning of applicable security laws. These statements are made on the safer provisions of those laws. Forward-looking statements are based on management's current views and consumptions. Please review our press release and tribes reports filed on SEDAR for various risk factors that could cause actual results to differ materially from our projections. We use terms such as gross profit, gross margin, adjusted EBITDA and recurring revenue on this conference call, which are non-IRF and non-GAAP measures. For more information on how we define these terms, please refer to the definition set out in our management discussion and uses. In addition, reconciliations between an adjusted EBITDA and net income is included in the press release this morning. Please note that all financial information is provided in Canadian dollars unless otherwise noted. With that, I will now turn the call over to Tribe's CEO, Joseph Nakhla.

Good morning, afternoon, everyone. It's a pleasure being with you. Thanks again for taking interest in our company and attending the call with us today, has been obviously highlighted in our press release, we're pleased to have another solid quarter, delivering another profitable EBITDA positive quarter here, 2 in a row. And we're quite pleased with where the company has been, those that have been following us know the last 1.5 years after we built our national infrastructure. We've put a lot of our effort and time into really integrating all the M&A and non-M&A kind of acquisitions that we've made that came through different divisions, restructured the whole company. Q4, end of Q4 was when we signaled that we finally took our 13 or 14 operating entities and put them into 2 and 3. Q1 was the the deployment of new leadership and/or expansion of leadership in our organization in different departments, ensuring that our back office is starting to support all those different departments with the same exact level of service that was offered in our original small office that started in Vancouver a few years ago. And now we're quite pleased to say that we've taken some serious steps towards that to kind of unpack the revenue a little bit more, you'll see it's about $8.2 million, approximately in Q1 and approximately pretty flat line from the last quarter. That's -- and you'll see that in the gross margin is probably a function of and more of a function of trading up some of the revenue quality that we've been working through. And you'll see a lot more new business coming through the door in Q2 and Q3, and we'll shed a little bit more light on why that is going to be a big pillar of our growth this year. Software and Service recurring revenue, as you may be familiar, that is a big important line item that's actually up year-over-year. Some of the lower revenue came through a function of slightly less transactions, some were related to seasonality and some related to geography. And we have achieved a second -- obviously, a success of EBITDA a quarter. I'm also not only pleased with that, but I'm also very pleased with the amount of debt that we've been able to take down. You'll see that an increase of VTB is down from 6.5%. Scott will walk you through that specifically. We're also incredibly pleased with the new restructured debt relationship that we've announced with the very large bank that we did in Q4. We're seeing the result of that. It's not its impact on our cash as well. So we're quite pleased with where the company sits there. And then you'll have seen also a press release, it's slightly inside ball as it pertains to the industry of us having completed 1.5 million truck building deficiencies. It's our way of saying no other company in Canada now that has actually achieved and helped 100-plus developers deliver brand-new condos and construction and more than 300 projects and allowed them to use our software to run workflows from the moment there is an issue in the brand-new condo all the way to satisfactory completion with all the complexities that occur way through that. That puts us really alone upfront and 1 of the biggest differentiator we have. All that being said, I'm going to hand it over to Scott to walk you through the financials, and I'll be back with some more strategic initiatives that we're working on. You are on mute, Scott.

It wouldn't be a meeting if it wasn't on mute. Anyway, Thanks, Jose. And a lot of what I'm about to say is going to be a little bit repetitive, but I actually think it is worth repeating. As you can see from this chart here, our revenue for Q1 2026 was $8.2 million compared to $8 million in the same quarter of Q1 or same quarter Q1 2025. We successfully maintained and improved the high revenue levels generated in 2025 and a portion of that was through the ACE Agency's acquisition in June of last year. Our gross profit for Q1 2026 was $3.6 million, again, compared to $3.5 million for Q1 2025. The increase in gross profit percentage was again due to increased revenues, while still maintaining our salary costs that form part of the cost of services. Our gross margin percentage was 44.2% in Q1 2026 compared to $43.5 million year-over-year Q1 2025, a 70 basis point improvement, reflecting a more profitable mix of our business, improved operating leverage and the impact of cost optimization initiatives across the organization, British Columbia through to Ontario. Adjusted EBITDA for Q1 2026 was positive $0.1 million, again, compared to $0.3 million in Q1 2025. Now while the prior year period benefit from delayed timing of certain operating expenses in particular with regards to audit and legal, underlying adjusted EBITDA performance in Q1 2026 continue to reflect improved operational efficiency and disciplined cost management. Next slide, please. As you can see here, again, I'm pleased to announce that Tribe continued to make meaningful progress, strengthening our balance sheet and improving cash flow in Q1 2026. Our vendor take-back obligations declined from $4 million in Q1 2025 to $1.25 million this quarter, representing $2 million or $275 million reduction in VTBs, which equates to 69% year-over-year reduction and I believe this reflects our company's disciplined approach to deleveraging and optimizing our acquisition-related obligations. In addition, interest expense declined 39% year-over-year from $0.36 million last year to $0.22 million, further improving cash flow and reducing our financing costs. These improvements meaningfully strengthen Tribes, I believe our financial position and enhance our financial flexibility as we continue executing on our long-term growth strategy. Looking ahead, we remain focused on disciplined capital management, continued debt reduction and driving sustainable profitability and, of course, shareholder value. That concludes my financial update. I'll turn it back to you, Joseph.

Thanks, Scott. Just to reposition everyone again, our business is really focused on delivering all kinds of different services, mainly property management services for residential living in Canada. We're the third largest property management company on the condo side, second largest on the third-party rental and institutional rental management. You'll see that our software and service revenue, it continues to go in the right direction, and it's still a good chunk of our auto revenue transaction revenue. This is all kinds of ancillary services that we sell, some -- some of our are seasonal and some are regional in nature. Still a very strong base, even though they did dip a little bit in that quarter, just by nature of the products and services types that we actually make available in the market for the quarter and also the behavior of the market, and I'm happy to shed more light on it if there's any questions about that. Next slide, please. What is important is continuous growth in our ability to generate revenue per door. And what you'll see here is our Q1 2025 numbers versus our Q1 took -- '26 versus '25, you'll see our software services and readiness is a very sticky recurring revenue continues to go in the right direction. -- the transactional revenue that just a touch, as you can see. However, that is, as I mentioned, it's a function of the regional nature and so -- and then you'll see our total revenue per door continues to be growing. I would say it's an industry leader. What's most important about that is that our buildings do not spend more money because they are -- we actually generate more revenue. Our buildings that we manage are healthier. They still within comparison apples-to-apples to the rest of the industry or benchmark next to their buildings next door are actually spending overall less money to operate that's due to the financial planning, the future proofing and the discipline we have. I would also say that our technology plays a big role in limiting the number of mistakes that occur, which, unfortunately, because of the complexity of residential living and managing these buildings happens in multitudes of companies. And I'm sure it happens to us as well, but it's definitely limited due to the number of workflows that we've been able to automate and actually catch and benchmark different categories and catch those issues really early. Next slide, please. I wanted to shed a little bit more light seemed a lot more of people on the street were intrigued about our approach and wanted to learn more about it. This concept of the operator as a platform is 1 -- it's kind of inside view into how we operate as an organization. We're going to start from the bottom up -- we are a service layer heavy company, and that is our way of saying the expertise that are required to help a large developer building a neighborhood changing community in terms of bringing in 500 or 1,000 homes that come in different categories. One category could be condo, next door could be a rental building, maybe even some non-for-profit mixed in with some at the very bottom, retail and maybe some office space. That service layer requires a level of expertise, licensing compliance and bigger understanding of what the with the particular market needs. That's why we are licensed and operate across the country. And that service layers heavily aided by our software layer. This is our own dog food that we built over the years. It's tried, tested and true always going through different modernization. And what that software layer does is it looks at 200-plus workflows very specific, could be as simple as allowing a resident to make a payment. It could be as complex as navigating through and aiding a big capital project for a building. With -- on top of that, it's a data layer that we've been able to accumulate and you can argue, well, doesn't every property management company have data, yes, but they don't have the sand digitized or don't have them. predictive or they don't have them even benchmarkable. And difference with us is all of our data sit in pools and these pools go into a big lake and that lake essentially allows us to help make better decisions on behalf of that community. And that's where the AI layer on the very top sites. And while we're just scratching the surface on that, I know it's -- it's a very topical approach. And I will -- I'm here to tell you that we've been actually behind the scenes using AI for a couple of years on the benchmarking side where AI is starting to play a bigger role in our existence as an organization is allowing people to do self serviced self-help as it pertains to our homeowners being able to get quicker, more indulgent answers, our benchmarking in terms of identifying outliers and issues with buildings. Obviously, I layer can play a major role there, but I can do a significant amount of heavy lifting behind the scenes, specifically when it comes to the ability to organize workflows within our organization. And again, we're just scratching the surface on that. And you'll see more and more of -- of that affecting our service delivery in a positive way. And we think that's going to not only impact the NPS scores and the satisfaction of our customers. And we sit on top of the industry right now as far as the satisfaction is concerned, a difficult industry to create Raven fans simply because everybody is very emotional when it comes to their homes. All that being said, I think we're going to take even another leap forward what AI is going to do, and it's going to also impact our gross margin meaningfully as well as open up further doors for revenue streams that can help the buildings be managed properly and also generate further revenue for us. Next slide, please. And that's the strategic position is why we're the most unique company of our client in the space. And we work directly, and we have a product streams for developers, obviously, boards and owners and landlords products and services, either on the asset management or single unit management. We are heavy touch with the residence. We have a significant amount of knowledge of who they are, what their needs are and we can actually predict further and further down the line here, what products and services would make sense for them. We obviously -- we think we're a great home for property managers, especially ones that want to be involved in the evolution of what that role looks like. You look at our property managers, we're incredibly proud of them. We keep adding to them, and that profile looks even different from an industry point of view. Our vendors love us simply because a lot of our tools that we're using allow them to bid properly, be able to be in the forefront of what's required and be able to even start planning forward with future proofing the health of these buildings. And you're going to see more announcements on that this year. And then we're unique because we actually have a capital projects division, very unique to a residential property management company. The division is actually going national as we speak. We're working through the legal and compliance requirements there simply because every building that ages requires capital management. And we are not only the #1 company that's well documented that we generate significant amount of dollars and help put money for a rainy day for these buildings, but we also now can help them allocate that capital in the right projects to ensure that the value of their homes is is really high. We obviously have very detailed financial workflows with all of our integrations. And then all of that, we just sit on a pool of data products that really help, again, benchmark how the buildings are do and how they should be doing and identify areas that we think we can bring our -- our workflows to help improve the operating cost of these buildings. Next slide, please. Good market update. Nothing earth shattering has changed in the last 4 weeks since we've seen you last. However, there's been some announcements, as you'll have read, about this pooled funds that are going to the market to actually take advantage of what may be unsold brand-new condos in different parts of Canada whereby they're going out to accumulate these condos, maybe buy them at a little bit of a wholesale price from developers who actually want to hand over that building. And those types of -- I spoke about that a year ago, and it looks like it's actually coming together now in terms of dollars. We still need help from the government. We're doing our best to be a voice of reason to explain why operationally, the government has to step in and create some incentives, not necessarily financial incentives, but maybe tax incentives for these pools that are coming in. So we're seeing a lot more activity there. We're pleased to say that the government approach to deferring some of the S and G for either waiving them for brand-new buyers for units that are $1 million or less and/or contemplating, deferring them for developers actually want to take unsold inventory and renting it out and we're and talks with multitudes of developers about that. They can -- the government will just defer that for 2 years or 3 years, so a developer does not have the obligation of paying HSD or GST on -- on a unit that hasn't sold that's been rented under their umbrella if we can actually get that to go over the line, which I'm positive or at least have positive feelings about it coming to fruition, that will go a long way. We've got multitudes of developers that we work with, like I mentioned earlier, work with more than 100 that actually have the desire to actually get those out in the market for -- in a rental pool. We've actually created a number of really cool products that can help and more -- give them more incentive to either put them in a rental pool and hold on to them or put them in a rental pool and sell them to investors. In both cases, we've got products that are actually very specific to it. I'm also hopeful that all I'm hearing at the administrative housing level is that there's going to be a significant reform of the approach of allowing developers to get their permits, management of costs, even shrink in the time from the moment people apply to the moment they get the permit would actually translate into quite a bit of capital that will go back into the -- the construction pool whereby people can actually put the shop on the ground quicker and actually deploy quicker. As you will have heard and say before, we were arguably the the property management company in Canada that has the largest number of future contracts for a brand new construction coming through the door, eventually going to get built. We're just hoping more and more that the the government kind of makes it easier. Now it's more complicated. It's not a federal problem. It's only -- it's a federal and all the way down to a municipal level. So it has to be a coherent strategy there. I am hopeful that, that will be changing and they're saying all the right things. Next slide, please. So we are going back to the form of our success, we've been quietly and I would argue this tree hasn't even given us the love that we deserve and what we've been able to do. But we've been quietly going out there and building the largest a repository of homes under management with a significant large number of digitized vendors now that actually have a full digital workflow to conduct all that work and business through our buildings that we manage. We've been able to obviously streamline process as we quite easily have the largest number of workflows that have been either automated or being automated. -- in the industry, and that's reflected in the way we deliver the service. We -- I would argue again that we have 1 of the most intelligent service layer that sits on top that allow our key property managers and those that are actually responsible where the rubber hits the road in terms of delivering the service to actually make better decisions, and that's reflected holistically at the macro level when you look at our portfolio of buildings, how well they're managed and how future proofed they are in terms of capital expectation for the next 5 to 10 years versus other buildings that we do not manage or managed by other traditional models. And we have the ability to continue to measure improvements, and we keep putting that in front of our condo corporations and rental. And we -- in Q1, we actually had actually, post Q1, we had a tribe export whereby we invited a lot of our customers in D.C. to come and have a number of work sessions where by we brought in some expertise on the legal side, insurance side and a few other areas to speak about what we're seeing in terms of patterns in the industry. And we anticipated 200-plus clients to show up. We ended up in not impressed just to impress upon you the importance of what our clients find that we deliver them, which is the knowledge and the expertise that's data-driven, not just fueling driven. -- about where the industry is going. And we anticipate a lot of that will actually not only translate into a continuous high level of retention and winning more business, which we're well on our way of doing. -- but also being able to monetize further by delivering more important services that these types of communities and buildings will have access to traditionally. Next slide, please. Again, I'll keep repeating our areas of focus. -- profitable operations, we're here. We continue to push on that by improving our gross margin and adding more buildings. Our AI expansion continues to be there. We -- AI is now touching pretty much all the different aspects of our business. And again, we're just scratching the surface on that. And we're really heavily focus on organic growth, but of new campaigns are going to the market will have been the first quarter ever where we actually started to -- because we amalgamate all these divisions that should start lending the tri-brand in the different markets. So no matter where you are in the country, and I know you're from all over the our beautiful country here on the call today. You'll see more and more of the dry brands starting to pop up all the way from Ontario out to the coast here. With that said, I'm happy to take any questions from any of the analysts on the call.

Our first question comes from Peter Sanger from Haywood Securities.

Congrats on the quarter. I'll be asking questions on behalf of Jean-Luc auto Haywood Securities. With the new CIBC facility in place, how are you guys prioritizing capital right now? You mentioned some M&A possibly, but is the near-term focus on debt reduction?

Scott, do you want to take that?

Yes. I was going to say, Joseph, do you mind if I take this 1 on Yes. Well, first off, with regards to M&A, I have 2 roles at Tribe. One is as the CFO and the other, I head up the M&A department here. So I can tell you that we're always looking at new partnerships with owners, with similar like-minded growth strategies. We bring to the table in addition to our PM skills, we bring the tech that petition needs to meet current expectations. So it can be a win-win for both of us. And although I have very good relationships with our brokerage community, we prefer to deal direct with those owners considering the future property management looks like we tend to deal directly with those owners and our discussions can typically take a year or more to come to final partnership because of relationships. So because of our relationships with our competitors, we are usually the only company on the side of the table, and we can both work around each other's timetable. So long-winded way of saying that, that being said, we're not looking to conclude any of our negotiations in 2026, but we're certainly going to continue discussions with these future partners. As Joseph mentioned, we have a number of companies that we have acquired that were amalgamating in 2026, 5 companies under the Tribe Management, Inc. brand. So a lot of our focus is going to be that the short term. With regards to the facility, we have funding available in that facility for future acquisitions. We have negotiated significantly better terms on the amortization of those loans, so allowing us to still look at acquiring and partnering with others while still having reasonable payments lower interest, extended amortization. So certainly not a hit on cash flow.

That's great. And in terms of -- we've seen a nice uptick in the gross margin profile of the business. And you mentioned further improvement as you guys optimize operations. But -- can we consider this range now the new floor? And where do you see this trending with AI kind of adding into the software mix in the next few years?

Yes, absolutely. We think that's our floor. We actually think we can drive that much higher. I've always said on our calls, I think a healthy version of our company will knock in the 50s north in terms of gross margin. It's pretty evident that I can help a great deal in delivering that. I just don't want to overuse the concept of AI and I'm not saying you are, but certainly just holistically, AI is just a great tool. And if it's used in the right way, absolutely no doubt that it will play a major role. But this idea that AI is going to replace property management is just -- it's not going to happen. If anything, there's more and more regulation coming in to ensure and protect against any -- any just absolute digital or AI-driven decision making for an incredible amount of assets, we're managing $40-plus billion worth of assets, idea that which is going to close our eyes and that AI make big decisions on behalf of that for people's homes is not going to happen. However, it can go a long way and allowing us to do more with less with ratios. We don't get to too deep in breaking out ratios, but it's not going to surprise anybody that our issues are very healthy within the context of property managers can do more with the tools that we've built, either AI-driven or software-driven and we'll continue to see improvement on that. We also want to do things to be able to drive some predictability for these communities more than what we even offer even though I would argue we're the best in the industry, I still think we can really allow these buildings to be ready for a rainy day quicker. We think there's financial products that can come into the conversation very, very quickly, and we think AI can actually derisk a lot of that, whether it's lending or insuring, so there's going to be a significant amount of injection of our current technology and thesis and to bringing in some further revenue streams and improvements in these communities as well.

And kind of sticking along the same theme. How are you thinking about the productivity per property manager changing as you kind of implement more AI into operations?

Yes, yes. I mean there's no doubt, if you look at our company from 4 years ago, whereby when we were making acquisitions and really just slowly converting from paper into digital, taking people's big folders and converting them into cloud-based data that can actually be accessed through their iPhone or iPad, we started to see improvements in terms of ratio. The ratio is becoming significantly meaningfully bigger now, and that's reflected even our revenue per door, but meaningfully simply because we can actually give them things to worry about to contemplate. So I would say ratio in terms of time of our property managers and property management teams because it's not just 1 person, it's that person and its community coordinators, it's their property accountant. That team is kind of responsible for all different aspects of the health of our communities. Those groups are able to not only worry about bigger projects and bigger items that really mean more for our condo owners and our REITs and/or family offices on the rental side, but also the ratio is improving and our ability to take best practice and put them in more communities is also improving. So that's all collectively getting better. We don't publicly go out and speak about those ratios, but you should assume that they're significantly better than other organizations, and that continues to improve.

Great. And just finally, in terms of the integration of your GTA property management businesses, how is that progressing on the technology side of things?

Yes. So thanks for bringing that up to 4 was the time where we actually worked significantly on the corporate amalgamation, bringing them under a similar umbrella changing slightly the geography as it pertains to a responsibility from a leadership point of view. And Q1 is the 1 where we're actually deploying our technology into these communities. I can say it's going incredibly well. It's the new technology that stack that we're putting out into these communities that they had maybe third-party technology before when those companies were actually licensing other software platforms, not Tribes. So our Tribe Home and our TriPro continue to be deployed in these communities going really, really well with great response. And believe it or not, we still have yet to even start realizing the benefit of our marketplace and our ability to generate further transactions from these communities as simply because we just put our software in there. And that you'll see improvement in that through '26.

We also have a few questions sent in from analysts. Our first set of questions come from Daniel Rosenberg of Paradigm Capital. His first question asked, we have recently seen new software start-ups in the rental space. including features that allow residents to pay rent with credit cards and earn rewards points. Have you seen landlords at residents explore these solutions? What is your overall view of them?

Yes, great question. We've seen them, too. The -- not a single 1 of them will exist without making our door to let us see what they've got under the hood. I'm going to break it into 2 because you cited Daniel cited a specific use case, which is payment and rewards. We've just concluded a pilot that we're very, very pleased with. So you'll see some news on that. So it's -- we think there's a few pretenders in this space as it pertains to payments. And it's my way of saying, quite frankly, actually, if you do the math, we're not delivering this case a product isn't delivering real value to the -- they don't own simply because they don't do enough volume to justify a lower transaction fee, whereby you get real value as a homeowner from a rewards point of view or a tenant from a rewards point of view. So we were interested and we aren't interested in paneling products, quite frankly, to leverage our size, whereby we know this isn't absolutely the best way for our customers. So when we do announce something around that, it's a product we stand by. It's a product that adds value to you as a homeowner whereby transaction fee will be -- will be lower than you could do on your own and the value you're receiving in terms of rewards will be higher than you can do on your own. And if that -- if the product meets that threshold, we're in. And we think we found that, we pilot it and we absolutely love it, and you'll see more news on that. Specifically now, that was a specific answer to the point about payments. It is -- you should -- everybody should know that we have multitudes of different ways you can make your payments on our platform, but we wanted to bring a really fun and rewarding way to get further points or awards of some sort, and you'll see more on that. As far as pop-up companies that are stopping and sometimes really well thought out features or products around rental management. You're absolutely right. A ton of them are out there. I have to say I'm a fan of a couple. We always look. We always learn. We always see what it is. We've piloted 1 that we were very, very pleased with around lease actually specifically around cultivating tenants and actually the lease-up process on the rental side. It's a product that we're very pleased with our team, both in a single unit and on the institutional, so like big building for lease-ups, use debt big, big fans. We will be doubling down on that product in some shape or form, and that will become more and more part of our tools. were approached quite frankly, every day with different products and services that we're looking at. None of it is too concerning for us because we're still entrenched. And if you go back to my earlier presentation today when I spoke about these 4 layers. Those 4 layers are incredibly difficult to play, especially if you're doing a good job in them. But we welcome those products and services. We are piloting a few, and we are also building some of our own that can be complementary to the service delivery.

Thank you, Joseph. Daniel's second question asked. You mentioned you focus on expanding revenue per home -- can we dive a bit deeper into the opportunities and challenges you're seeing?

Yes, for sure. I mean the numbers don't lie. We've been improving our revenue per door from the moment we came to existence, quite frankly. It's not rocket science how we do it. You deliver better service, you're able to charge more for new opportunities that you're coming through. but it's not because people just want to throw money at you. They're doing that because they know the building in your hands is significantly more protected and serve and better served than in other hands. So they don't mind paying a little bit extra to you knowing that the overall cost for operation is lower. I mean I always Joe, but it's a true statement, nobody ever ever, ever when they're buying a condo, says, how much are we paying our property management. They always ask the question, how much is my maintenance fee on the condos, right? And if your maintenance fees with an alignment of what it should be, but the building isn't really healthy, in good shape. That is where you want to live, and that is -- that constitutes success. On the transactional side of the business, honestly, I think we are just scratching the surface. Our marketplace, while I think we've done a pretty good job in taking that product to market. I still think has just an incredible amount of opportunity from a growth point of view. Most people don't understand that a single household in Canada that lives in a condo expense approximately and this is even a couple of years old, but it spends approximately $60,000 annually on things that are around their home, things that are related directly or indirectly if they're home, and try to just scratching the surface on that. In terms of wallet size and being able to leverage our size and bring in products that really are meaningful that make people's lives better in the homes that they live in. We think that's a tremendous opportunity. And then it's not a surprise. I've been public about that before. We manage well above $200 million of capital expenditure annually on behalf of our buildings. Well, if you break that out and see how much of that goes towards plumbing, goes towards handyman services, goes towards cleaning we're still yet to mobilize and actually create a genuine ecosystem, full ecosystem to actually allow our condo corporations and stratas as we call them, and even allow our big REITs and family offices to even leverage the size that they have to actually deliver -- we can deliver them even a lower OpEx. I mean it's pretty low, but we can even drive even a truck through that and actually continue to make further revenue from a transaction point of view. Again, we're just scratching the surface on that. And we look and see we're generating $10 per month per door. So unheard of for the industry, and I can make that statement simply because we looked to a lot of companies that we've either bought or didn't buy. And we know these numbers are incredible. But we still think we're just again scotch in the surface on that, and that's why I'm pretty confident we are going to get to the 50s in terms of gross margin. And again, just do remember, our gross margin is genuine gross margin. We put all of our cost of goods. We load them up. So it's not -- it's not something that we just like to use as a venernumber. It's actually how we use and operate internally.

Thank you, Joseph. Our next questions come from Gabriel Long of Beacon Securities. His first question asked, what do you anticipate will be the key drivers of operating leverage this year? And where are you seeing the biggest opportunities for efficiency gains across the business?

Yes. I don't want to bore everybody because I've touched on a lot of that stuff. But we do think AI in our accounting service delivery will go a long way as putting programs together to help a lot of our vendors, so the vendors that run their services for our buildings, even helping them get into the 21st century, using either AI or is some of the digital tools we've built to let them build better, built more accurately and be more competitive. I think we think that's going to go a long way, and that's going to also help the way we count for all these communities and prepare their financials for them. The other big lever is going to be that ratio, I spoke about earlier in terms of allowing our smartest, more expert mines and and our big compliance to really focus on these things versus a lot of administrative things. So that's AI and other software platforms that we've built to go a long way and allowing them to continue to improve in that ratio. -- and then just identifying benchmarking opportunities where we can say, hey, XY is that building? We see that as a blind spot coming in the next 5 years, take our capital expenditure expertise that we have gained and acquired that manages a lot of capital expenditure annually right now and take that across the country and productize it, meaning it doesn't matter whether you have a 100 project or you have a $5 million project. We can actually manage that for you and do it properly using our data stack and our expertise. So these are all operating levers that, like I said, been saying. We're just scratching the surface on.

Thank you, Joseph Caris next question and ask Aside from M&A, what do you view as the 3 key revenue growth levers over the near term?

Yes. I kind of touch a little bit more about that. The organic side of it, I mean, you've got your traditional buildings that are starting to realize that they need a stronger help in hand to navigate through some of their rainy day and/or challenges that they've got or they may not just be anywhere close to the satisfaction level that they haven't. So we're seeing more and more of that in terms of proposals. I don't think we've ever had as many RFPs out in the market as we do now. So that's -- the organic growth, we'll continue to be a driver. We're also seeing an uptick in interest in in those rental products that I spoke about earlier. The heavy lifting on that is just we need a little bit of help from the government to come in and and make it worthwhile for people to incentivize them essentially without giving them cash to take these products to the rental pools in the market. We think that's a tremendous opportunity and we're seeing really good for that. And despite what you're hearing the doom and gloom, I mean, buildings that got started in the last 4 years have to complete. And Q1 actually with 2 or 3 large properties that just got delayed. And that's not a reflection of anything other than just some permits and completion and some trades. So those are going to be big drivers for us as well.

Thank you, Joseph. There are no further questions. I will now pass the call back to Joseph for closing remarks.

Well, thank you, everyone. Great questions, more under the hood operational questions on this call. Also, it's great to hear. We're very pleased and thankful for our team and their hard work to continue to be making that big push towards profitability. I'm very, very bullish on where our company is at, and we are a bit of a Unicorn in terms of uniqueness for both in the service delivery side, the geography side and the accumulation of all the tech back services that we've been able to put under 1 hood, very, very pleased with what we've done with it. I am bullish on where AI can play a big role in improving that, but not just for the sizzle of AI. It's actually in our case in everything from the moment we now write a line of code all the way to delivering agents that can answer questions, better questions for our communities and our customers. We still -- we're bullish on our own company. We look at the last activities in the last 12 to 18 months, and the insiders believe in us writing checks in all the last few rounds, and we think we're incredibly undervalued. We understand the Street is just slowly getting -- we come at around understanding what we're set out to do. And I think the numbers will speak for themselves, especially when you look at the size, revenue and now the profitability profile. So -- thanks for taking interest in our organization, and thanks to our team for all the hard works Claude and his team for delivering another great quarter, and we'll see you guys in the market, and we'll see you next quarter. Thanks again.