Earnings call transcript: Baylin Technologies Q2 2025 beats EPS forecasts

Baylin Technologies Inc. (BYL) reported better-than-expected earnings for the second quarter of 2025, with earnings per share (EPS) of $0.01, surpassing the forecast of a $0.01 loss. This unexpected profit, coupled with revenue of $22.46 million against a forecast of $22 million, led to a 9.43% surge in the company’s stock price in after-hours trading. According to InvestingPro data, the company maintains a modest market capitalization of $32 million and shows a relatively low market sensitivity with a beta of 0.24.

Key Takeaways

• Baylin Technologies reported a positive EPS of $0.01, beating the forecast.
• Revenue reached $22.46 million, exceeding expectations.
• Stock price increased by 9.43% following the earnings announcement.
• The company improved its net income from a loss in the previous year.
• Future market conditions are expected to be softer in the latter half of 2025.

Company Performance

Baylin Technologies showcased a robust performance in Q2 2025, reversing a net loss from the previous year into a net income of $2 million. This improvement is attributed to increased revenue and operational efficiency, as evidenced by a gross margin rise to 46.3% from 41.9% in 2024. The company’s focus on its wireless infrastructure segment, which grew by 40% in 2024, continues to drive performance. InvestingPro analysis reveals the company has achieved a 10.83% revenue growth over the last twelve months, though it faces challenges with short-term obligations exceeding liquid assets, as reflected in a current ratio of 0.8.

Financial Highlights

• Revenue: $22.46 million, a 1.9% increase from 2024.
• Earnings per share: $0.01, surpassing the forecast of -$0.01.
• Gross Margin: 46.3%, up from 41.9% in the previous year.
• Adjusted EBITDA: $3.4 million, up from $2.3 million in 2024.

Earnings vs. Forecast

Baylin Technologies exceeded forecasts with an EPS of $0.01 against a predicted loss, resulting in a 200% earnings surprise. The revenue of $22.46 million also surpassed expectations, contributing to the positive market response.

Market Reaction

Following the earnings announcement, Baylin Technologies’ stock price rose by 9.43%, closing at $0.29. This increase reflects investor confidence in the company’s ability to outperform expectations and manage operational efficiencies effectively. Based on InvestingPro’s Fair Value analysis, the stock appears to be overvalued at current levels, despite showing a strong free cash flow yield. For deeper insights into valuation metrics and additional ProTips, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Outlook & Guidance

The company anticipates that the full-year performance for 2025 will be comparable to 2024, despite expecting softer market conditions in the second half. Growth is projected in the wireless infrastructure sector, with potential revenue gains in 2026 driven by new technology trials and European market expansion. InvestingPro’s Financial Health Score rates the company as ’FAIR’, with particularly strong scores in growth potential. Subscribers can access detailed analysis of growth metrics and future projections through InvestingPro’s exclusive research tools.

Executive Commentary

CEO Layton Carroll emphasized the company’s disciplined approach and customer focus, stating, "We continue to be disciplined, we’re lean, and we really focus on our customers’ needs." Carroll also highlighted the importance of creating shareholder value, noting, "Creating shareholder value is a key litmus test for us and for me personally."

Risks and Challenges

• The company faces potential challenges from geopolitical uncertainties and tariff impacts.
• A slowdown in the satellite market could affect future revenue streams.
• Market conditions are expected to soften in the latter half of 2025, potentially impacting performance.

Q&A

During the earnings call, analysts inquired about the company’s EBITDA performance and potential M&A strategies. Discussions also focused on managing market uncertainties and exploring growth opportunities for 2026.

Full transcript - Baylin Technologies (BYL) Q2 2025:

Conference Operator: Morning, ladies and gentlemen, and welcome to the Bailin Technologies Second Quarter twenty twenty five Financial Results Conference Call. This call is being recorded on Thursday, 08/07/2025. I will now turn the call over to Kelly Miles, Director of the Marketing and Investor Relations of Balient Technologies. Please go ahead.

Kelly Miles, Director of Marketing and Investor Relations, Bailin Technologies: Thank you. Hello, and welcome, everyone. Thank you for joining the call this morning to review our second quarter twenty twenty five financial results. On the call today from Balen are Layton Carroll, Chief Executive Officer and Cliff Gary, Chief Financial Officer. We will be available for questions at the end of the presentation.

Before we begin, let me make it clear that our comments today may include forward looking statements and information as well as answers to questions that could imply future expectations about the prospects and financial performance of the business for 2025 and beyond and include the use of non IFRS measures. These statements are subject to risks, uncertainties, and assumptions. Accordingly, actual performance could differ materially from statements made or information provided today, so you should not place undue reliance on them. We also do not intend to update forward looking statements or information except as required by law. I ask that you read our legal disclaimers and explanation of the use of non IFRS measures and refer you to the risks and assumptions outlined in our public disclosures, in particular the sections entitled Forward Looking Statements and Risk Factors in our annual information form for the year ended 12/31/2024, and our other filings, which are available on SEDAR plus Our second quarter results were released after market closed yesterday.

The press release, financial statements, and MD and A are available on SEDAR plus as well as on our website at balentech.com and otcmarkets.com. I would now like to turn the call over to Layton.

Layton Carroll, Chief Executive Officer, Bailin Technologies: Thank you, Kelly. Good morning, everyone, and thank you for joining us today. I am pleased to report we delivered a very strong quarter with solid performance across all of our business units, with growth across revenue and profitability metrics. The results reflect the strategy we’ve employed, the strength of our diversified portfolio, disciplined execution, and continued focus on operational excellence. We’ll walk you through the highlights of the quarter, provide some insight into what drove the performance across our key our businesses and offer you perspective on the opportunities and challenges ahead.

There are several points I do wanna highlight though. Net income of 1,000,000, an increase of 1,100,000.0 over Q2 twenty four and 3,000,000 over ’25. Gross profits increased 1,200,000.0 over the 2024, while revenue was only up 500,000.0. Gross margin of 46.3% compared to the 2024 of 41.9%, a 4.4 increase achieved despite the modest increase in revenue. Adjusted EBITDA of 3,400,000.0, our sixth consecutive quarter and our highest since I started with the company.

We also extended our borrowing facility with RBC to the 2026. With that, I’ll now hand it over to Cliff, Gary, to walk you through the financial information after which I’ll provide more color on the individual business units.

Cliff Gary, Chief Financial Officer, Bailin Technologies: Thank you, Leighton, and good morning, everyone. Prior to prior to discussing the quarter twenty twenty five results and financial position, I would like to address some important disclosure in our statements. The company has extended its credit facility with RBC to the January 2026, but consistent with our December 24 and first quarter twenty five reporting, we have noted a material uncertainty related to going concern arising from the outstanding court order for the return to the escrow agents of $1,800,000 plus interest. We are continuing to work at resolving this issue. Let me walk you through our financial results for the ’25 with comparisons to the prior year against ongoing operations as reported.

The company’s revenue increased 500,000.0 or 1.9% to 22,500,000.0 in the 2025 compared to the prior year quarter. The increase was attributable to the sales volume increase in the wireless infrastructure business line, partially offset by softer revenue in the embedded antenna business line. Against a backdrop of the modest $500,000 increase in revenue, the company’s gross profit saw an increase of $1,200,000 compared to the 2024. The $1,200,000 increase meant our gross margin increased 4.4% to 46.3% in the ’5 compared to the ’4. The higher gross margin was driven by the increase in the wireless infrastructure business line, which had stronger revenue and a favorable product mix compared to the prior year period.

Operating expenses increased slightly from $8,400,000 in the ’24 to $8,600,000 in the same period this year. These factors contributed to a very solid adjusted EBITDA of $3,400,000 for the ’25 compared to $2,300,000 for the ’4. The company’s operating income of $1,800,000 for the ’5 compares to an operating income of 800,000.0 for the ’24. Net income at $2,000,000 for the ’25 improved from the net loss of 100,000.0 for the ’24. Cash from operations was $200,000 for the ’25.

This included a cash usage of $3,100,000 for working capital and compares to the $400,000 for the second for the prior year second quarter. Moving to results for the six months ended thirty June twenty twenty five, the company’s revenue was $41,300,000 for the six months ended 06/30/2025, compared to $42,100,000 for the same period prior year. The decrease of $800,000 or 1.8% being due to sales volume decreases in the embedded antenna and STATCOM business lines in the 2025, partially offset by an increase in the wireless infrastructure business line. Despite the $800,000 decrease in revenue, gross profit increased $1,400,000 compared to the prior year first six months. Gross margin was 44.5% compared to 40.3% in the same six months ended 06/30/2024.

Higher infrastructure volumes and a better product mix drove these improvements, which was consistent with what we witnessed in the second quarter. Operating cost for the 2025 was $17,800,000 a slight increase compared to the prior year $17,500,000 Adjusted EBITDA for the first six months of twenty twenty five was $4,100,000 increased from $2,700,000 for the same period prior year. The strong second quarter resulted in operating income of 600,000.0 for the 2025 compared to the operating loss of 500,000.0 for the prior year period. The company’s first six months net loss of $1,000,000 compares to the net loss of 2,100,000.0 from the prior year’s continuing operations. For the first June ’5, the company generated $2,900,000 of cash from operations compared to the prior year $1,500,000 use of cash.

This cash was partly used to facilitate a reduction in our net debt position from $14,300,000 at 12/31/2024 to $12,900,000 at the June 2025. With that, I’ll now turn the call back to Layton.

Layton Carroll, Chief Executive Officer, Bailin Technologies: Thank you, Cliff. The improvements in our business reflect what we’ve been working on over the past several years. Clear market driven strategies containing costs, prioritizing r and d and product mix. These things have led to both revenue growth and higher gross margins. At the same time, the macro economic environment has been, well, bananas with a high level of uncertainty concerning the impact of UF tariffs, retaliatory tariffs, changes in customer purchasing behavior driven by uncertainty over tariffs, as well as the overall level of inflation and interest rates.

April was indeed a very challenging month for us given the constant changes in tariff regime. We expect to have a more tempered performance in the second half of the year as the SATCOM business line is seeing a slowdown in order intake resulting in lower backlog. This is consistent with other satellite technology companies and the broader satellite market. Ironically, the bidding activity for our satellite business is an all time high, but delays in US government funding cycles. And the easy way to describe this is think the big beautiful bill, which just recently passed have had a bit of a cascading effect on buying behavior in that particular market.

The embedded business line continues to see changes in product mix, which interestingly enough led to slightly lower than planned revenue, but better gross margin and bottom line attainment. Product mix indeed was very good for the embedded team this this past quarter and and certainly this year. The wireless infrastructure unit was that was really the the place where I saw the greatest potential for growth when I joined if we could get the strategy right and execute. And while we have had a great quarter and are continuing to grow, that business always has some seasonality, particularly in the fourth quarter. So we expect over the back half of the year, it will be a little lower than the first half of the year.

But it continues to exceed all of the plans that we have had for it and what we expected would happen this year, which is a great thing. Few other things to share there. We’re in the process of commercializing a new derivatives of our patented multi beam technology. And it’s for a completely different use case that really does something meaningful for wireless carriers just through conversations and showing them some of the precursors of what we’re doing and the concepts of the technology. We have no less than seven tier one carriers asking for a trial this year.

That means US, Canada and Europe, that’s a cool place to be. We do see some seasonality in our future and are Looking forward to it’s there is gonna be seasonality. We know that we are being very proactive in managing our underlying cost structure. I’m gonna speak a little bit more about that later in the presentation. That said, I do remain very confident in our long term strategy and expect business to continue to grow well into the future.

Thomas Swink, Analyst, Taradan Capital: Let me

Layton Carroll, Chief Executive Officer, Bailin Technologies: talk about wireless infrastructure first. The wireless infrastructure business line, fantastic second quarter. In fact, I enjoy talking to the leadership and telling them they sandbag their plans, understanding that’s tongue in cheek. We actually set the bar higher even after they grew very well in 2024. They actually grew 40% in 2024.

We set the bar higher and they’re ahead of that bar. It’s kind of a neat place to be. We expect the demand for multi beams. Small cells are now back that they had not been around very much in terms of sales velocity in really late twenty two, certainly ’23 and ’24. But we are seeing it come back and actually expect that to come back even stronger in ’26.

We’re doing very well in the stadium deployment space and we continue to see good things out of this business. Multi beams are opening up new opportunities. And give you an example, we talk about multi beams, we talk about market expansion. I’ve made the comment before you don’t go to Europe and say, hey, my name’s Layton. I’m a nice guy.

I’d like to say you’re in attendance. They have people there. I don’t know, Ericsson, Nokia, a few others. Good companies who know what they’re doing. By having something that matters and is competitively differentiated and priced well, you can hit a sweet spot for those carriers who are solving use cases for them.

We have three trials of our multi beam scheduled with top European carriers coming up this year and countries such as Germany, England and Portugal. As I mentioned earlier, we had a patent pending derivatives coming. It’s coming to market later this year. This is gonna, in my opinion, be a nice thing for us in twenty six revenue team and growth within this business. And I’m looking for further value there.

Based on our current assessment, we see we expect wireless infrastructure revenue in ’25 to exceed ’24 resulting in full year financial performance comparable. I’m looking to actually hope for slightly better but to 2024, which is already a great year for that business. The embedded line, did certainly experience higher revenue in q two compared to q one at ’25. But this was lower than ’4 due largely to changes in customer demand as a result of fluctuations. And there was a lot of back and forth with our customers as the tariffs were coming out back and forth reciprocal component tariffs.

And understand a lot of our customers, they’re not manufacturing in North America. The people who we deal with, who do the manufacturing of the end product for a lot of our customers, they are manufacturing overseas and a lot of them, they’re called ODMs. They are operating at reasonably thin margins. So tariffs to them can have a super material impact. So you can kinda understand how there’s a collateral impact into this business and it’s changed some of the customer buying behavior.

I feel like we’ve handled it very well. And in fact, we’ve actually been able because of product mix been able to improve our margin, gross margin percentage on a relative basis and deliver nice results. So we expect the ’24 revenue to be lower than the first half and for the full year slightly lower than ’24. But the nice part is our backlog remains strong. A lot of this business we believe will have moved to the right.

And we do see this business continuing to be very resilient for us. The SATCOM business line had an extremely strong second quarter, which included a shipment of a large solid state power amplifier program for a USDOD application that was delayed from the first quarter. It is currently experiencing lower intake and we’ve seen kind of seen that throughout the q one q two. So we’re now dealing with a reduced backlog. We do see this as being cyclical.

And in other cases, delays in customer programs. As an example, the large DoD application I mentioned, it’s programmatic, meaning we are the standard of that. We do not expect fresh orders for this program, for example, in Q3. My guess is it’ll be Q1 or Q excuse me, Q4 or ’26. But this is a multiyear, multimillion dollar upgrade initiative that we build in Quebec that is gonna continue.

We’re gonna have a nice business. In contrast, the number of active bids. So while our backlog is down and we’re dealing with a cyclical challenge, the number of active bids we have is at an all time high, which is interesting. So the market is there. We expect order flow through to start to materialize as we get later in the year, setting us up to have this business in a stronger level of performance in ’26 certainly to ’25.

So I do expect revenue in this business line in ’25 to have lower revenue than in ’24. And you have lower revenue and low revenue in really in the back half of the year. This would imply we’re looking to streamline the business and reduce costs as we align our production with what we expect in terms of revenue flow. Now, I’ve kind of touched on tariffs, but I did wanna take a moment and talk about this because it is from April forward, doesn’t stop. I mean, you saw this morning, Trump is saying that he wants to talk to and negotiate COSMA all over again with the Canadian government.

That’s gonna be important for us to follow and watch and react to. Right? We can’t control that, but everybody has to deal with this type of stuff. So the changes in volatility, it it doesn’t go away. We just have to deal with that.

We’ve been very proactive in in taking steps to mitigate the tariffs across all of our business line. In fact, I wanna thank the teams in Canada, The US and China for their tireless work on mitigating. As one would notice from our gross margin attainment, particularly for Q2, when all of the tariffs were going in, there’s all this uncertainty. I legitimately confident. I’ve talked to many other CEOs about this.

We did a very good job of managing tariffs. We worked with our auditors on some things. We worked with customers. In some cases, for certain product lines, we were actually able to get price increases and rebalance pricing to help us deal with that. It it is I’m very proud of what the entire team has done and how we’ve handled that.

Alright. From a macro perspective, we see the business continuing see the business coming out of what I would call historically low spending cycle, particularly for wireless infrastructure in ’24 and where that market was. And we see further improvement as we get to ’26. In addition to organic growth, we have been spending time evaluating several M and A opportunities as a means to drive further growth. But we’re only gonna do that if it’s gonna be beneficial to shareholders.

Creating shareholder value is a key litmus test for us and for me personally, if we’re gonna do this. And by the way, we have walked away from opportunities to do M and A already at Balin because it wasn’t the right value, it wasn’t gonna be the right fit for our business. We’re gonna continue to look at it. It’s gonna be something that we’ll talk about in our go forward strategy, but it’s not something we’re gonna do unless I think it’s gonna help us deliver real value to our shareholders. As Baylan moves forward, look, I’m proud of the team.

We continue to be disciplined, we’re lean, and we really focus on our customers’ needs. By focusing on growth and building our business, for the quarter, but to the long term, I really am excited about the future for our employees, our customers and our investors. In closing Q2, we managed to do some seemingly ever changing tariffs and geopolitical shifts. And obviously in some cases, in customer purchasing behavior to deliver such fantastic operating results in what has to be described as a difficult environment is a testament to the resiliency of our employees and the structures we put in place. Over the past few years, we’ve been focusing on getting smarter, leaner, and getting both our culture and strategy right.

That both of those matter greatly. This has allowed us to mitigate the impact of tariffs while continuing to grow. While we remain encouraged by our momentum, we are also approaching the second half of the year with appropriate caution and focus. We expect softer conditions for some of the businesses in coming quarters and we are gonna actively manage the business to respond effectively. That said, I remain confident in our long term positioning and our ability to navigate near term challenges while continuing to create value for shareholders.

Thank you for those of you who are here on the call and your continued support. We look forward to keeping you updated on our progress in the quarters ahead and looking for some more good things out of these businesses. I had my four year anniversary since joining the company in June. And while it was, I reflect on that, how hard it was when I got here, how challenging it was, what we have been through and to see the results of where we are now. I cannot thank the teams, the customers, our suppliers for their continued confidence in us.

I need to thank our investors for having our back and giving us the runway to be able to turn this business. I am super happy with the financial results. We’re very open and honest about what comes ahead, but I’m really looking forward for the next four years. With that, that ends our formal remarks. Operator, please take questions.

Conference Operator: Thank you, ladies and gentlemen. We will now begin the question and answer session. If you have a question, please press the star followed by the one on the touch tone phone. If you wish to cancel your request, please press the star followed by the two. If you are using a speakerphone, please lift the handset before pressing any case.

Our first question is from Thomas Swink from Taradan Capital. Your line is now open.

Thomas Swink, Analyst, Taradan Capital: Hi, Leighton. Congratulations on the quarter here. Very strong results on the profitability. Was wondering if you can walk us through some of the moving parts on the EBITDA, especially given some of the performance in the segments here and if we can expect a similar level going forward.

Layton Carroll, Chief Executive Officer, Bailin Technologies: Yeah, with respect to Q2, it I mean, all three business lines, nice operating EBITDA. Wireless infrastructure continues to knock the cover off off the ball so to speak. The Satcom business had a nice quarter and the embedded business had a nice quarter. It was reasonably uniform, but on a relative revenue basis, wireless infrastructure, which has been our growth engine, we expect to continue to be. It is generating the highest on a relative basis and see that being good for our future.

Now, having said that, we did talk about seasonality as we go to q three to q four, do expect we’re gonna see lower attainment out of the satellite business in q three to q four. And then we’re gonna and it’s just the embedded business and the infrastructure business. They are both typically reasonable Q3s and then absolutely seasonality as you get into Q4 in the holiday season. A lot of people have already bought materials and products to get things out, the embedded team for certain things, they will have a build through the first half of the year. And then because in Q4, there’s holiday selling and promotions from our end customers.

And so you kinda had this seasonality dynamic. So I would expect the second half to have lower attainment than the first half without question, that’s relatively normal in our business. And that’s part I think why we also wanted to talk a little bit about how we see things going as we get into ’26. Because the order book, the pipeline of opportunities continues to expand. And Satcom even though I am confident saying we’re gonna have a lower second half within that business.

We’ve never had a bid book that we have right now. So we continue to win at the historical rates that we have. I like the direction of where we’re going for the long term. Hopefully that answered your question.

Thomas Swink, Analyst, Taradan Capital: Yeah, that’s a good color. Thank you for that. I definitely understood the point on seasonality here but given the improvements in the revenue mix, the higher margin revenue mix, I was wondering, especially the second half, is there sort of a how does that compare to the second half of last year on the gross profit line and as well as EBITDA?

Layton Carroll, Chief Executive Officer, Bailin Technologies: Yeah, yeah, no, no. Good question. I think I’m just trying to go through numbers in the back of my head here. I think our second half of this year on particularly on the operating EBITDA will be slightly lower than or it will be lower than last year. I say that in the infrastructure just continues to grow and exceed expectations.

I do think it will be lower. I think from a full year, the results are gonna be reasonably comparable on what I would actually expect to be lower revenue in total, and then coming positive again in terms of overall growth as we get into 2026. I think that’s a fair way to put it.

Thomas Swink, Analyst, Taradan Capital: Okay. That’s great. So I guess my next question would be on sort of the m and a that you mentioned. Will it be sort of strategic? Are you looking at competitors?

Any color on that would be great.

Layton Carroll, Chief Executive Officer, Bailin Technologies: Yeah. I so one of the things that I think about is I want to expand the resiliency of our business. Right? If you go back to 2024, we needed to divest the mobile business. It was low intellectual property, low pricing or low commercial power.

All the power was with the customer. And at that point, Samsung was the largest customer of said business. And you were competing on price and then trying to get volume. That’s not gonna be particularly for what we’re trying to build a high quality business. I we will look at things that are going to be if you think about what our core DNA is, our business is is basically predicated around RF engineering capabilities and RF products that matter, right, and getting the commercial strategy right.

So when I talk about resiliency, do I wanna buy an apple to bring it in and pair it with another apple when it may be better to have an apple and a pair. Things that are adjacent have additional durable revenue streams. And and by the way, some of the things, as you build the business, you think about building resiliency, think about building a foundation, boring makes money, boring makes that’s a great place to be. So if we pick up things that are adjacent, but rhyme with what we do, where there’s clear opportunities for synergy, cross selling, customer and market expansion at a reasonable value, to me that’s the type of thing that will be interesting for us. So add additional capabilities, additional customers, additional revenue streams, with the opportunity to cross sell and uplift its entirety.

Strategically, that’s how I would generally think about approaching an acquisition. And I’ve done this a few times when you go through and you look at acquisitions, it’s a bit like dating. You go out once, like, no, that’s not for me. You got a few times and you’re like, hey, that’s not really gonna be a great future fit. You do the no, no, it’s not you, it’s me.

I still think you’re pretty thing. We still wanna be friends. And then you finally find the one that makes sense, that’s when you execute. So it’s kind of funny, I’ve always thought of this kind of cycles you’re going through and evaluating and doing M and A. It’s a bit like dating and finding the one that really makes sense for you and then finally getting married.

So we’re gonna effectively take that same approach and we are only looking for things that are going to add capabilities for our company and drive shareholder value.

Thomas Swink, Analyst, Taradan Capital: That’s great color as well. I guess one last one for me. As we look forward to 2026, hopefully, some of this tariff noise would be a little bit more cleared out and the macro clears out as well. You also mentioned some strong demand in wireless especially. So maybe you can just walk through the levels that we’re hoping to see in 2026 and how that compares to maybe this year and ’24 as well?

Thanks.

Layton Carroll, Chief Executive Officer, Bailin Technologies: Yeah. I mean, we’re it’s still early. We’re you know, we have done some preliminary looks at at where we think the businesses will be. Wireless infrastructure is a bit of the wild card. Because without any new products, I mentioned we have something that we’re ready to commercialize as a derivative technology.

That is true. If we just stayed within that kind of the portfolio of what we’re doing now and the product development within that without a new thread, wireless infrastructure will continue to grow. We’ve got good demand, we’re getting into new customer markets, getting into this many trials in The EU. It’s a cool thing. The newer technology coming out, that’s the wild card.

And we get that right. And again, we have to get the commercials right. That has the potential to be a higher volume and product. Well, if I have to sacrifice some margin to get a ton of volume and the final number is an order of magnitude bigger, I don’t have to be a rocket scientist to know that that’s probably the right decision. We are expecting infrastructure to grow again next year.

We’re actually expecting the company to grow and it should, in my opinion, outperform ’24 and ’25. But I can’t give you a sense of magnitude because we have some things coping that are interesting.

Thomas Swink, Analyst, Taradan Capital: Okay, great. And as we looked in the aggregate in ’26, if the volumes come, can we expect maybe a similar level to the first half of this year? I know it’s early days but any color would be great. I’ll pass the line.

Layton Carroll, Chief Executive Officer, Bailin Technologies: Yeah. If I could control the US administration, I would say yes, absolutely. But the problem is, there’s a ton of uncertainty in this market. Right now, with how things are playing out, I expect the ’26 to rhyme with the first half of twenty five or be stronger. And then I would say the back half of ’26 should absolutely be stronger than the back half of ’25 that we anticipate yielding an overall better year for us.

But there’s a lot of moving parts and we have a lot of work to do to attain that.

Thomas Swink, Analyst, Taradan Capital: Thank you.

Conference Operator: Thank you. There are no further questions at this time. Please proceed.

Layton Carroll, Chief Executive Officer, Bailin Technologies: Okay. I appreciate it. I know there was a second analyst who was gonna join us and unfortunately had a hard conflict. Actually, I think we’re speaking to him at 11:00 today. Very happy for Balen, I’m very happy for our team to have this sense of accomplishment.

I just wrap it up by saying thank you for being here and thank you for our employees for working so hard with me over this past four years to to make this a reality.

Thomas Swink, Analyst, Taradan Capital: With that, I think we

Layton Carroll, Chief Executive Officer, Bailin Technologies: can wrap the call. Thank you, guys.

Conference Operator: Thank you, ladies and gentlemen. The conference has now ended. Thank you all for joining. You may all disconnect your lines.

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