CaliberCos Inc. Class A Common Stock 2026 Q2 Earnings Call

Please go ahead. Good afternoon, everyone.

Welcome to Caliber's second quarter 2026 financial results conference call. With me today are Chris Loeffler, Chief Executive Officer and Co-founder, and Michael Rosales, Acting Chief Financial Officer of Caliber. Please note that we have a quarterly earnings presentation which will serve as a supplement to today's prepared remarks. You can access the presentation in the investor relations section of our website at www.caliberco.com. After management's commentary, we will open the call for questions. As a reminder, the information discussed today may include forward-looking statements that involve risks and uncertainties. Words like believe, expect, and anticipate refer to our best estimates as of this call, and there can be no assurances that these will actually take place. Our actual future results could differ significantly from these statements.

Further information on the company's risk factors is contained in the company's quarterly and annual reports and filed with the Securities and Exchange Commission. It is now my pleasure to turn the call over to Chris.

Please go ahead. Thank you, Ilya.

Good afternoon, everyone. Today, my comments will address an update to our strategic expansion into digital assets and blockchain, a discussion of Caliber's financial position, and our private equity real estate platform and related activity. Before walking through these topics, I'll briefly frame the quarter. Our second quarter results were in line with our 2026 plan. While platform revenue declined approximately 10% year-over-year, driven by the timing of revenue-generating activities between the periods, our platform adjusted EBITDA turned positive, an improvement of approximately $0.4 million, and we executed across both sides of the revenue plan we laid out at year-end, generating new capital formation and project-level financings. We are reaffirming our full year 2026 guidance today, and Michael will walk you through the financial details later in the call. I'll start my update with our digital asset strategy.

I am happy to announce that this morning, Caliber completed its first fund tokenization. Investors in PURE Pickleball & Padel can now elect to hold their investment as a digital token. This is the first tokenization for us, but we are already working on our second, our Steamboat Springs Hyatt Studios offering. This is a moment in time in Caliber's 17-year history worth pausing to enjoy. It is the start of a tokenization program we expect to expand across additional offerings over time, beginning with an initial slate of approximately $100 million in managed assets. Let me put our tokenization work in a market context. According to rwa.xyz, the registry that tracks tokenized real-world assets, the total market stood at approximately $25.4 billion at the end of 2025. As of this week, it stands at approximately $38.4 billion.

That is roughly 51% growth, approximately $13 billion of new tokenized assets in the first seven and a half months of 2026. Within that $38.4 billion, only about $200 million is associated with real estate, roughly half of 1% of the market. When we read those two numbers together, we see a market that is growing fast and a real estate category inside of it that has barely been touched. Real estate is one of the largest asset classes in the world, and almost none of it has been tokenized. We believe that that gap is the opportunity, and with our first fund tokenization complete and an initial slate of approximately $100 million of managed assets behind it, we intend to position Caliber as an early leader in the tokenization of private real estate funds. Why tokenize? Applying tokenization to our existing real estate funds platform enhances capital formation, simplifies investment valuation, adds liquidity features for investors in our funds, and reduces operating costs for Caliber through a more efficient investment management platform.

We brought together top-tier partners for this tokenization with Chainlink's automated compliance engine automating investor verification, KYC and AML review, sanction screening, and transfer controls, integrated with leading identity, custody, and fund infrastructure providers. Turning to the treasury itself, at the end of the second quarter, we held 229,204 LINK tokens with a fair value of $1.7 million. During the quarter, we sold approximately 278,357 LINK tokens for proceeds of $2.5 million. We redeployed that capital into our real estate platform, generating a corresponding increase in cash and other assets.

We continue to allocate capital where it generates the highest return for shareholders. Our real estate platform is where we are seeing the most immediate revenue growth opportunity in 2026, and the treasury supported that execution. As the real estate platform releases cash, we plan to maintain our LINK treasury and strategically grow our position according to the company's capital allocation strategy. Working side by side with the team at Chainlink has only strengthened our conviction on the value they bring to tokenization and the use case for LINK to power the infrastructure layer of decentralized finance. Turning to financial visibility, our focus in 2026 is on executing financings and converting our existing pipeline into realized revenue. We have updated our platform performance supplement through the end of the second quarter, which provides investors with a clear view of our operating business.

This supplement excludes consolidated assets and focuses on the portion of our platform that directly drives shareholder value. At the end of the second quarter, our estimated performance allocations totaled $96 million, down from $99 million in the prior quarter and up from $85 million in the prior year quarter. Turning to fundraising, managed capital at the end of the second quarter was $495 million, compared to $489 million in the previous quarter and $498 million in the year ago quarter. The increase relative to the previous quarter was primarily driven by increased investments in our residential and commercial properties, including new capital raised into PURE Pickleball & Padel and our Canyon Residential project, and contributions from our diversified funds.

Our underlying capital formation activity in the second quarter remained consistent with our plan, and we expect managed capital to grow over the balance of 2026 as new fund offerings come onto the market. Our wholesale channel's advisor production is continuing to broaden, and the selling group base continued to grow. During the second quarter, we added 4 new producing advisors across 3 different firms, including one firm that began producing for the first time this quarter, a signal that production is moving beyond our founding relationships. In parallel, we continued to roadshow the Hyatt Studios platform to the wholesale channel and build a real pipeline of advisor and firm-level interest. Third-party due diligence is underway now, standard practice before any strategy reaches advisors' desks, and we expect it to clear in time for a full launch into the channel in mid Q3.

From there, the work is converting the pipeline into funded capital. I am also pleased to share that our direct fundraising from high net worth individuals improved in the second quarter and drove overall fundraising results. This is a healthy signal as Caliber saw improved lead generation from its in-house marketing engine and conversion to form valuable new relationships. The direct investment client base of over 2,000 individuals continues to expand as interest in real estate investment appears to be improving in 2026. Now we will turn to updates on assets we manage and the performance of our managed real estate funds. We remain focused on investing in hospitality, multifamily, and multi-tenant industrial real estate, which we believe offers Caliber's investor clients the best opportunities in the current market environment.

In the interest of your time each quarter, I touch on what I believe are the most important changes that occurred during and after the quarter's end, but I will not attempt to comprehensively discuss every movement in every fund. Our Hyatt Studios developments continue to progress as planned. In July, we broke ground on the Hyatt Studios Steamboat Springs project and purchased a 2.5 acres site for our Hyatt Studios TSMC project in Phoenix, Arizona. We now control a hotel development site minutes away from TSMC, which is a $265 billion investment in U.S.-based semiconductor manufacturing. We have now launched 3 of the 4 investor offerings supporting our Hyatt Studios development platform and expect to launch the fourth as it completes drafting and legal review.