POSaBIT Systems (PBIT) investor relations material

Executive summary

• Achieved another profitable quarter with strong growth in core business lines, particularly in Point of Sale, and improved overall financial performance.

• Focused on expanding POS footprint, increasing SaaS revenue per merchant, and building recurring cash flow.

• Continued expansion of customer base and adoption of e-commerce and brand portal platforms, with the Brand Portal now covering a majority of top cannabis brands in Washington.

• Maintained a dominant position among cannabis retailers in Washington, leveraging this for further product adoption and market leadership.

• AI initiatives are being developed to enhance internal productivity and customer offerings, with a full MCP server launch imminent.

Financial highlights

• POS revenue grew 64% year-over-year, from $598,000 in Q2 2025 to $1 million in Q2 2026.

• Total revenue was $2.3 million, down 15% year-over-year due to a shift to an agent-only payment model; Adjusted Revenue was $3.41 million.

• Gross profit increased 10.5% to $2.04 million, with gross margin expanding to 91% from 70% a year ago; Adjusted Gross Profit was $3.2 million (93.8% margin).

• Adjusted EBITDA rose 177% to $1.08 million, up from $390,000 in Q2 2025.

• Cash on hand increased to $3.34 million as of June 30, 2026, up 34% sequentially and nearly 90% year-to-date.

Outlook and guidance

• Entering the second half of 2026 from a position of financial strength, with confidence in the durability of margin expansion and cash generation.

• Continued focus on growing core businesses, expanding software offerings, and leveraging AI for operational and product improvements, including the upcoming MCP server.

• Legislative changes, especially cannabis rescheduling, could significantly boost revenues and market opportunities.

• Management anticipates AI-driven capabilities will create new ways for customers and partners to interact in real time.