Route1 (ROI) investor relations material

Revenue quality and outlook

• Q2 gross margin was ~45% vs 36% in Q2 a year earlier; lifecycle maintenance and support revenue grew ~12% YoY, and ARR exceeded US$1.4M per year as of Aug. 1.

• Q3 revenue was expected to be generally consistent with or slightly above Q2, with gross profit and EBITDA improving; results were expected in early November, potentially before the Nov. 10 AGM.

• Q4 revenue was expected to exceed Q3, with further EBITDA improvement; priorities include improving gross profit and EBITDA, growing recurring revenue, and strengthening the balance sheet.

• Better revenue mix from lifecycle support, operational services, Comprehensive+ and Route1 ABI, alongside operating expense discipline, was cited as supporting improved margins and cash flow at similar revenue levels.

Commercial activity and conversion

• Business development spans account expansion, VAR conversions, OEM and channel referrals, university and public-sector outreach, RFPs, replacement cycles, regulatory changes and operating requirements.

• Camera deployments and modernization can expand into integration, lifecycle support, Comprehensive+, Route1 ABI adoption and recurring operating relationships.

• Opportunity creation had outpaced order conversion, partly because public-sector and institutional procurement can take months; Q4 focus was converting existing opportunities and approvals into orders.

• Management expected deal closures to begin following sustained investment in business development motions, with the pipeline continuing to expand; it expected this conversion issue not to remain a discussion in 2027.

ALPR market and product development

• Public-safety buyers increasingly consider architecture, data retention, access, sharing, auditability, data residency and customer control; parking buyers emphasize enforcement productivity, occupancy, access, reliability and integrated workflows.

• Management sees customer-controlled LPR architecture, lifecycle accountability through Comprehensive+ and operating intelligence through Route1 ABI as a relevant combination across these needs.

• Route1 ABI work includes camera trend analysis, weekday/weekend segmentation, multi-zone and permit surveys, structured survey and geofence workflows, and map-based municipal occupancy reporting.

• Management said privacy and data-protection scrutiny is opening a public-safety opportunity, citing Genetec’s database design, where client data is not shared nationally; it distinguished this from parking deployments.