Mobile Infrastructure Corp Q2 FY2026 earnings call

• Strategic & Operational Execution • Mobile Infrastructure delivered its second consecutive quarter of broad-based organic operating growth, with the company meeting or exceeding all 2026 starting KPIs • Utilization on a trailing 12-month basis reached 70%, up 5 percentage points year-over-year, with quarterly average utilization hitting the highest level since the company took control of its portfolio in 2021 • Quarterly RevPass (revenue per available space) hit $225, the highest Q2 RevPass in three years, with trailing 12-month RevPass exceeding $200 • The company continues to replace underperforming operating partners that do not meet KPIs, and prioritizes conversion of assets from lease structures to management contracts to gain better operating cost visibility and control • Markets that faced construction-related dislocation in prior quarters (including Cincinnati and Nashville) have fully recovered, with this recovery reflected in both contract and transient revenue volumes • Milwaukee saw strong performance driven by another successful conversion of an asset to a management contract, a priority initiative for all assets in the portfolio
• Capital Allocation Update • The company paid down $3.7 million in principal and $0.8 million in accrued interest on its line of credit during Q2 2026. Cumulative debt repayments from asset rotation proceeds total $22.6 million to date • Cumulative proceeds from the 36-month $100 million asset rotation program (for non-core assets) have exceeded $30 million, sold at a weighted average implied capitalization rate of ~2% • The company is currently negotiating ~$25 million in additional transaction value under the asset rotation program, and will only close transactions at the right price with the right buyer, prioritizing favorable terms over speed • The primary use of disposition proceeds is cost of capital reduction, followed by opportunistic share repurchases and selective acquisitions of higher-quality assets
• Long-Term Portfolio Value Thesis • The portfolio consists of well-located parking access points and land in constrained US central business districts, with three core long-term value drivers: irreplaceable supply in supply-constrained urban cores, optionality for adaptive reuse (residential, hospitality, EV charging, last-mile logistics, emerging mobility), and inherent adaptability to future mobility trends as a provider of critical vehicle/people access points • Management notes the private market valuation of the company's assets is meaningfully higher than Mobile Infrastructure's current public share price, with underlying net asset value significantly above current trading levels
• Board Update: Take-Private Proposal • A special independent committee of the Board of Directors is actively reviewing a recent take-private proposal submitted by BOM Asset Management. No further comment will be provided until the committee completes its evaluation, and business operations continue as normal during the review process

Mobile Infrastructure's business is split between two core parking revenue segments, with transient parking contributing ~67% of total revenue and contract parking contributing ~33% of total revenue. For Q2 2026: Total company revenue was $8.9 million, down 1.1% year-over-year from $9 million in Q2 2025, a decline driven by prior asset sales. Same location total revenue grew 5.6% year-over-year to $8.9 million. Contract parking volumes grew 12% year-over-year and 7% sequentially quarter-over-quarter, with broad-based gains across markets including Cincinnati, Denver, and Fort Worth. Transient revenue grew 4% year-over-year portfolio-wide, driven by recovering markets post-construction and strong event demand. Total property expenses were $3.0 million, down from $3.6 million in Q2 2025, with same location property expenses down $0.2 million year-over-year. Same location net operating income (NOI) grew 12% year-over-year to $5.9 million, from $5.2 million in Q2 2025. Adjusted EBITDA was $4.1 million, up 5.5% year-over-year from $3.8 million in Q2 2025. On the balance sheet, the company ended the quarter with $10.9 million in cash/cash equivalents/restricted cash and total net debt of $197.1 million, down $2.9 million from the end of Q1 2026.

Management reaffirmed its full year 2026 guidance, which was initially released with 2025 full year results and reiterated in Q1 2026, with no upward or downward revisions: • Total full year 2026 revenue is expected to range between $35 million and $38 million, representing ~4% year-over-year growth at the midpoint vs 2025, and ~8% same location year-over-year growth • Full year 2026 NOI is expected to range between $21.5 million and $23 million, representing ~7% year-over-year growth at the midpoint vs 2025, and ~10% same location year-over-year growth • Full year 2026 adjusted EBITDA is expected to range between $15 million and $16.5 million, representing ~10% year-over-year growth at the midpoint vs 2025, and ~13% same location year-over-year growth • Guidance does not include the impact of any future asset sales or acquisitions under the company's asset rotation program. The guidance reflects expectations for continued contract volume growth, benefits from venue reopenings and market recoveries, and positive contributions from technology and pricing optimization initiatives

• Forward-looking projections are inherently uncertain, and actual results may differ materially from guidance due to risk factors disclosed in the company's SEC filings (including Form 10-K and Form 10-Q) • Closing of the $25 million in active asset rotation transactions may be delayed beyond the end of 2026, as the company will only close deals that meet its price and buyer requirements • Parking revenue growth is dependent on continued return-to-office momentum and downtown residential absorption, which are multi-quarter trends that may progress slower than expected • Utilization and rate growth are asset-specific and market-specific, and broad-based rate growth will not occur until more assets reach stabilized occupancy thresholds • Inflationary pressure could increase operating expenses faster than current expectations, despite the company's ongoing expense discipline initiatives

Q: The company cited $25 million in active transactions under its capital recycling/asset rotation program: what stage are these in, are they expected to close this year, and would the pending take-private proposal disrupt this program? / A: All $25 million in transactions are under active negotiation. The company prioritizes selling to the right buyer at the right price (targeting sub 3% capitalization rates) over speed, so closing by the end of 2026 is possible but timing could slide. Management cannot comment on the take-private proposal during the review process, but it is business as usual for the asset rotation program currently.

Q: Contract parking volume growth accelerated to 12% year-over-year in Q2 2026, up from 6% in Q1: what is driving this acceleration? / A: The acceleration builds on the company's multi-quarter focus on growing contract parking. Q1 is seasonally the slowest quarter for contract growth, so sequential acceleration into Q2 is expected. The faster growth reflects a material pickup in return-to-office trends and faster-than-expected lease-up of newly completed downtown residential units, trends the company expects to continue into Q3.

Q: Is there a general utilization threshold that triggers a shift to focusing on pushing price increases, rather than prioritizing volume growth first? / A: There is no one-size-fits-all threshold, as it varies by asset type and market. Larger parking garages typically reach the stabilized threshold for rate hikes between 80% and 100% utilization, while smaller surface lots that see multiple daily turnover can have utilization rates of 300-400% and still not be considered stabilized for broad rate increases.

Q: What share of total revenue comes from the transient parking segment, and what is the typical seasonal pattern for this segment? / A: Transient parking makes up approximately two-thirds of the company's total revenue, with contract parking accounting for the remaining one-third. Q3 is seasonally the strongest quarter for transient revenue, driven by increased downtown events, conventions, sports, travel, and vacation activity, a trend the company expects to hold in 2026 as previously dislocated markets have now fully reopened post-construction.