Financial Data and Key Metrics Changes - The company's revenue for Q2 2025 increased approximately 8.9% sequentially, totaling approximately $22.1 million for the year [4][15] - Platform service revenue grew significantly, generating $9.2 million in 2025 compared to $2.5 million in 2024 [15] - Gross profit was a loss of $2.7 million for 2025, an improvement from a loss of $3.4 million in 2024 [16] - The net loss for 2025 was reported at $7.1 million, with a loss per share of negative $0.35 [18] Business Line Data and Key Metrics Changes - The Lifeline Wireless program through the Torch brand has scaled significantly, with activations increasing from 20,000 in June to 57,000 in July, and projections of 80,000 to 90,000 by September [5][6] - The MVNO prepaid LinkUp platform launched in April, activating approximately 10,000 users, which more than doubled to over 20,500 in July [9] - Third-party prepaid wireless top-up revenue reached $4.3 million in July, with projections of nearly $5 million in August [10] Market Data and Key Metrics Changes - The company is focusing on states with higher margins for Lifeline activations, leveraging experience from previous programs [25][32] - The competitive landscape includes established companies, but the company differentiates itself through its compensation structure and proprietary enrollment platform [64][66] Company Strategy and Development Direction - The company aims to ramp up to 100,000 locations operating on its platform through organic growth and distribution agreements [14] - A strategic partnership with AT&T enhances the company's telecom infrastructure capabilities [7][8] - The focus is on transitioning from ACP to Lifeline and LinkUp, with a clear strategy to prioritize known revenue streams for quicker profitability [33][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth, citing strong activation growth and expanding distribution as key drivers [20] - The company is optimistic about future revenue guidance, projecting $75 million to $90 million for 2025 and $225 million to $240 million for 2026 [5][18] - Management acknowledged the challenges faced during the transition but emphasized the importance of execution at scale [20] Other Important Information - The company has made significant investments in infrastructure and operational efficiencies to support growth [7] - The Lifeline program has been operational for a long time, and the company has leveraged its historical experience to enhance its current offerings [25] Q&A Session Summary Question: What are the key drivers for Lifeline activations? - Management highlighted the focus on states with higher margins and the experience gained from previous programs as key drivers for growth [24][25] Question: How does the company balance priorities between Lifeline and LinkUp? - The company prioritizes known revenue streams, focusing on Lifeline for quicker profitability while still supporting LinkUp's growth [29][33] Question: How is the competitive marketplace, and is there a risk of price competition? - Management acknowledged competition but emphasized their unique compensation structure and proprietary platform as differentiators [64][66]

Summary of the Conference Call Company Overview - The company operates in the prepaid wireless market in the United States, catering to approximately 100 million prepaid wireless subscribers, primarily targeting the blue-collar working class and government-subsidized demographics [3][4] - The company has integrated with AT&T as a Mobile Virtual Network Operator (MVNO), with the MVNO market projected to grow from $30 billion in 2023 to nearly $53 billion by 2031 [4] Distribution and Growth Strategy - The company currently has around 9,000 retail points for distribution, with a goal to expand to over 100,000 stores [6][8] - The target market frequently visits local community stores, which are crucial for the company's distribution strategy [6][7] - The company aims to help store owners increase revenue through transactions and foot traffic [7] Revenue Channels - The company has three main revenue channels from its contract with AT&T: 1. **Prepaid Brand (LinkUp)**: Competing with other prepaid companies like Cricket and Boost [10] 2. **Government Subsidized Channel (Torch Wireless)**: Focused on the Lifeline program, which provides free connectivity to eligible households [11][12] 3. **Wholesale to Other Wireless Companies**: The company is integrating with other MVNOs on its platform [13][14] Financial Performance and Projections - The company is confident in its revenue guidance due to a strong team with extensive experience in the prepaid market [15][16] - The Lifeline program is expected to scale faster than previous programs, with projections for cash flow positivity by the end of 2025 [18][26] - The company is currently seeing subscriber growth in the thousands per day, with a focus on states that offer higher payments under the Lifeline program [24][25][26] Market Dynamics - The prepaid wireless industry is relatively new, having gained significant traction since 2009, indicating potential for continued growth [16] - The company has diversified its revenue streams to avoid reliance on a single channel, which mitigates risks associated with funding uncertainties [21] Future Outlook - The company anticipates exponential growth as it scales its four revenue channels, all of which are recurring revenue models [23][24] - There is a strong emphasis on real-time visibility of growth metrics to keep shareholders informed [24][25] Conclusion - The company is positioned for significant growth in the prepaid wireless market, with a robust strategy to expand its distribution network and diversify its revenue streams, while leveraging its partnership with AT&T to enhance its service offerings and market reach [4][10][21]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported revenue of $10.6 million, a decrease from $31.4 million in Q1 2024, primarily due to the shutdown of the ACP federal funding [18][20] - Gross profit was a loss of $2.9 million in Q1 2025 compared to a gross profit of $8.2 million in Q1 2024, largely due to the cessation of ACP funding [19][20] - The net loss for Q1 2025 was $7.6 million, translating to a loss per share of negative $0.38, significantly impacted by the end of federally funded ACP [20] Business Line Data and Key Metrics Changes - Platform service revenue grew to $8.3 million in Q1 2025 from $2.5 million in Q1 2024, attributed to the hiring of a new sales director [18][19] - The company has onboarded three MVNOs with two more in the integration pipeline, collectively serving hundreds of thousands of subscribers [11][26] Market Data and Key Metrics Changes - The company shipped over 210,000 SIM cards to customers and retail partners, with an additional 290,000 in inventory and 250,000 more expected before May [8][9] - The distribution model includes over 9,000 community-focused stores nationwide, enhancing local engagement and transaction efficiency [9] Company Strategy and Development Direction - The company aims to target $200 million in revenue for the twelve-month period ending April 2026 and expects to be operating cash flow positive by the end of 2025 [6][17] - A strategic partnership with AT&T was launched, providing access to a reliable network and enabling the company to offer backend telecom infrastructure to MVNOs [7][10] - The company is focused on scaling its distribution network to 100,000 locations by the end of 2026, leveraging various product offerings to penetrate the market [46][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, emphasizing the importance of the recent financing to support expansion efforts [16][23] - The management noted that economic conditions may enhance the demand for their services, particularly among underserved communities [39][40] - There is optimism regarding potential enhancements to the Lifeline program, which could increase revenue opportunities [52][53] Other Important Information - The company closed a $6 million financing deal, which is expected to provide flexibility for rapid execution of growth plans [16][20] - SG&A expenses decreased by 28.6% year-over-year to $4.4 million in Q1 2025, reflecting cost management efforts [19] Q&A Session Summary Question: Timeline for MVNE revenue - Management indicated that revenue from MVNE partners should start appearing in Q2 as they activate and transition to new SIM card inventory [26] Question: Distribution of SIM cards - The distribution strategy involves a triage approach to ensure inventory is available for various channels, including government subsidized programs and retail networks [28][29] Question: Economics of MVNE partnerships - Management noted that the revenue model varies by MVNO type, making it challenging to provide a one-size-fits-all revenue projection [31][32] Question: Economic outlook for convenience store owners - Management observed that economic downturns often increase demand for their services, as underserved communities seek value alternatives [38][39] Question: Strategy to reach 100,000 locations - Management confirmed visibility into achieving the goal through various partnerships and product offerings, with a target timeline by the end of 2026 [46][49]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported revenue of $10.6 million, a decrease from $31.4 million in Q1 2024, primarily due to the shutdown of the ACP federal funding [18] - Gross profit was a loss of $2.9 million in Q1 2025 compared to a gross profit of $8.2 million in Q1 2024, largely due to the cessation of ACP funding [19] - The net loss for Q1 2025 was $7.6 million, translating to a loss per share of negative $0.38, significantly impacted by the end of federally funded ACP [20] Business Line Data and Key Metrics Changes - Platform service revenue grew to $8.3 million in Q1 2025 from $2.5 million in Q1 2024, attributed to the hiring of a new sales director [18] - The company has onboarded three MVNOs with two more in the integration pipeline, collectively serving hundreds of thousands of subscribers [11] Market Data and Key Metrics Changes - The company shipped over 210,000 SIM cards to customers and retail partners since the soft launch, with an additional 290,000 SIMs in inventory [7] - The company aims to reach a target of 800,000 SIM cards distributed or in inventory by June 2025 [26] Company Strategy and Development Direction - The company is transitioning from a reseller to a platform and from a distributor to a telecom partner, focusing on high growth and high impact [17] - A new product, "Phone in a Box," was launched, allowing convenience stores to sell and activate wireless service easily, which is expected to enhance revenue for both the stores and the company [12][13] - The company is targeting a near-term goal of 100,000 locations operating on its platform, currently at about 9,000 locations [14][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and long-term value creation, emphasizing a disciplined approach to growth [23] - The company believes that economic challenges may increase demand for its services, as underserved customers look for more affordable wireless options [39][40] - Management is optimistic about the potential for an enhanced Lifeline product, which could increase revenue opportunities [50] Other Important Information - The company closed a $6 million financing deal, which is expected to provide the flexibility to execute its growth strategy without diluting shareholder equity [16][20] - SG&A expenses decreased by 28.6% year-over-year to $4.4 million in Q1 2025, reflecting cost management efforts [19] Q&A Session Summary Question: Timeline for MVNE revenue from partners - Revenue from MVNE partners is expected to start flowing in Q2 2025 as they activate and transition to the company's SIM cards [25] Question: Distribution of SIM cards among subscribers - SIM cards will be distributed across various channels, including government subsidized programs, retail networks, and new MVNE partners [27][28] Question: Economics of MVNE subscribers - The economics vary by MVNO type, and while it's challenging to model exact revenue per subscriber, the company aims for a healthy margin per subscriber [30][34] Question: Economic outlook for convenience store owners - The company sees stability in underserved communities, with economic challenges potentially increasing demand for its services [38][39] Question: Strategy to reach 100,000 locations - The company has visibility into its pipeline and is leveraging multiple products to onboard new locations, aiming for this goal by the end of 2026 [44][47]