OBOOK Holdings Inc. Class A Common Shares 2026 Q2 Earnings Call

Hello everyone, and welcome to OBOOK Holdings' first half 2026 earnings conference call. OBOOK Holdings operates under the OwlTing Group brand, so throughout today's call, we will refer to the company as OwlTing. This call is prerecorded. I'm Henry Fan, Investor Relations Director, and I'll be your host today. Joining me are our Founder and Chief Executive Officer, Darren Wang, and our Chief Financial Officer, Winnie Lin. Before we begin, I would like to remind everyone that today's discussion contains forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our current expectations. For a more detailed discussion of these risks and uncertainties, please refer to our filing with the U.S. Securities and Exchange Commission. Over the past several years, we have invested in the regulatory, banking, compliance, settlement, and technology infrastructure required to support global stablecoin-enabled payments.

During the first half of 2026, we began moving from infrastructure build-out and client onboarding into live production and transaction processing. As a result, our first half financial results capture only the early stage of these commercializations, while our more recent operating data reflect a meaningfully different level of activity following the period end. I think that distinction is particularly important when evaluating the company today. The first half largely reflects the cost base and infrastructure required to prepare the platform to commercialize. The operating data we are seeing more recently begin to show what happened is that infrastructure is increasingly utilized by enterprise customers. As investors evaluate our progress from here, we believe there are several things that are more important than any single monthly data point. The first is production conversion, how quickly customers move from signed relations and integration into recurring live transaction activities.

The second is utilizations, how transaction activity grows once those customers are in production. The third is economics, how increasing utilization, a change in revenue mix ultimately translates into gross profit and operating leverage. Those are the links we believe investors should increasingly focus on as OwlPay moves from commercialized towards scales. Darren will discuss our commercial progress, post-period operating momentum, the development of our enterprise settlement network, and the long-term opportunity we see in stablecoin-enabled global payments. Winnie will then review our first half financial results and discuss how we expect the financial model to evolve as transaction volume scales. When we discuss long-term objectives today, including our 2030 revenue target and long-term margin objective, these are the strategic objectives and should not be interpreted as near-term financial guidance. With that, I will now turn the call over to our Founder and Chief Executive Officer, Darren Wang.

Darren, please go ahead. Thank you, Henry.

Hello everyone, and thank you for joining OBOOK Holdings first half 2026 earnings conference call. There is one point I want investors to understand clearly today. The OwlTing entering the second half of 2026 is at a very different stage of development from the company reflected in our first half financial statement. Over the past several years, we have invested significant time and resources in building the infrastructure required to support global enterprise payment. That includes regulatory licensing, banking connectivity, compliance, stablecoin settlement, local payout capabilities, liquidity management, and the enterprise payment orchestration technology behind OwlPay. All of these investments have one thing in common: much of the infrastructure has to be built before revenue can truly scale. During the first half of this year, I believe OwlPay crossed an important inflection point. We began moving from infrastructure build-out into commercialization.

As we enter the second half, the next stage is increasingly about one thing: scale. Today, I want to use the operating and customer activity we have seen over the past several months to explain why we are increasingly confident in that transition. I do not want investors to look at our recent operating data simply as growth in transaction volume. To me, the more important implication is the data is beginning to validate something we have spent the past several years building toward. OwlPay is evolving from a cross-border payment platform into a global enterprise settlement network. We are not simply seeing more transactions. We are seeing more enterprises move from onboarding into production. We are seeing real payment flows emerge across more markets. We are seeing additional corridors become active, and we are gradually deepening our capabilities across banking, liquidity, routing, and local settlement.

When all of these things happen together, the nature of business begins to change. The first signal is the pace of transaction activity. Let me start with one of the settlement rails within Harbor, the Circle Payments Network or CPN. CPN is an important settlement rail within Harbor's broader multi-rail architecture. It is not the entirety of Harbor volume. At the beginning of this year, our CPN activity was still at a very early pilot stage. Since then, CPN settled transaction activity has increased materially as customer and payment flows have moved into production. At the same time, transaction execution quality has improved materially as the platform has scaled. So what we are seeing is not simply higher transaction activity. We are seeing higher transaction activity together with improved execution reliability. That matters because enterprise payment infrastructure has to do both. Higher volume without reliable execution is not scalable infrastructure.

The progress we have made across compliance, transaction validation, liquidity management, and settlement operation is increasingly allowing us to support larger and more consistent enterprise transaction flows. The timing of commercialization has been shaped by the pace of enterprise activation and the progression from early pilot activity into recurring production. As the platform scales, we continue to optimize execution and we continue to view the opportunity primarily through the lens of long-term production conversion and recurring enterprise utilization. Separately, Visa Direct adds a card funding payment channel to OwlPay, giving eligible users a more convenient way to initiate and fund transactions alongside traditional bank-based channels. As we continue to expand these capabilities, we are also streamlining the KYC and onboarding experience while maintaining the required compliance standard. Based on our current progress, we believe we can begin seeing transaction activity through Visa Direct during the fourth quarter of 2026.

Over time, we believe this product improvement can make OwlPay easier to access and support broader adoption. The second signal is the expansion of enterprise demand. Our enterprise pipeline is also continuing to expand. We are seeing a growing number of enterprises move through our commercialized pipeline, with more progressing from initial engagement into signed relationship integration and onboarding. Today, we have approximately 80 signed enterprise relationships with a broader pipeline expanding well beyond that base. The composition of the demand is becoming broader as well. We are seeing opportunities from payment providers, fintech companies, digital financial infrastructure companies, financial institutions, and enterprises with cross-border treasury and settlement needs. Many of those opportunities are still progressing through sales, integration, or onboarding and are not yet production volume. They provide an important indication of the breadth of demand we are seeing.

The question we are focused on is no longer simply how many enterprise customers we can sign. The more important questions are how quickly we can move signed enterprises from onboarding into production. Once they are in production, how much of their existing payment activity can we ultimately capture? This is how we think about production conversion and wallet share. From individual corridors to a many-to-many network. The nature of customer demand is also changing. Increasingly, enterprise customers are looking for payment and settlement connectivity that spans multiple regions rather than a single origin and destination corridor. We are seeing demand across major developed and emerging markets, often from customers that need to access multiple regions through a common settlement infrastructure. Many of these opportunities remain in sales or onboarding and are not yet production volume, but taken together, they provide an important signal.

Harbor demand is no longer centered around a small number of individual cross-border routes. It is increasingly developing into a many-to-many settlement network, connecting enterprises across multiple regions and financial systems. That matters because Harbor's long-term value should not depend on any single corridor. The value increasingly comes from network connectivity itself. We are also beginning to see the same Harbor architecture operate across different banking systems, regulatory environments, and customer requirements. If all of our growth came from one customer or one corridor, we have proven one use case. Instead, we are beginning to validate a settlement architecture that can be replicated across different markets. What matters to us is not simply the current size of any individual corridor. We are looking at whether a market can become an important node in the broader OwlPay settlement network. The nature of transaction activity is increasingly enterprise-driven.

Another important indicator is the composition of payment activity itself. Within completed CPN settled volume, approximately 43% has been related to the cross-border supply chain and international trade payment. Another 37% has come from fintech institutions and digital payment providers, including treasury liquidity management, regional settlement account funding, and cross-platform fund movement. Together these categories represent close to 80% of current CPN settled transaction activity. This is important to me because it demonstrates that activity we are seeing is not primarily dependent on short-term speculation or consumer crypto trading. It is increasingly linked to real economy activity, enterprise trade, treasury management, liquidity management, and cross-border financial flows between institutions. These use cases can be recurring. A business does not pay its supplier only once. A fintech company does not rebalance treasury liquidity only once.

Once Harbor becomes integrated into an enterprise customer operating workflow, those flows can potentially recur daily, weekly, and monthly. The recurring nature is one of the most important differences between enterprise settlement infrastructure and a single payment transaction. Our site customer base is also increasingly diversified across areas such as wallet infrastructure, cross-border remittance, stablecoin payment orchestration, B2B offerings, international trade settlement, supplier payment, fintech infrastructure, and institutional treasury. This diversity can increase the utility and density of the network over time. We have demonstrated the ability to build direct settlement infrastructure. There is another capability that I believe the market may not fully appreciate. OwlPay is not simply connecting third-party payment APIs. We also have experience building and operating direct banking and settlement infrastructure. The clearest example is the U.S. Historically, our direct U.S. banking rails have cumulatively processed more than $1.4 billion in transaction volume.

To me, that is an important proof point. It demonstrates that OwlPay has capabilities beyond orchestration. We have experience building, operating, and scaling direct financial infrastructure. The question for us today is no longer simply whether we can do this. The question is, in which market does it make the most strategic and economic sense to replicate that capability? Where we see sufficient transaction density, enterprise demand, regulatory advantage, and attractive economics, we can selectively deepen direct banking and settlement connectivity over time. That can improve settlement reliability, routing flexibility, and customer experience, and transaction economics. Importantly, when local infrastructure is established, it does not have to serve only one customer. The same banking, liquidity, and settlement infrastructure can potentially support multi-hub or enterprise customer and multiple transaction flows. That is one of the ways we believe greater network scale can ultimately create operating leverage.