Claros Mortgage Trust, Inc. Q1 FY2026 earnings call

• High-speed subscribers expanded driven by Guyana fiber network penetration. Mobility subscriber base up slightly with post-paid growth offsetting prepaid declines. Total revenue $182 million, up nearly 2%. Core telecom revenues grew 3% year-over-year. Operating income $11.7 million, up $9 million. Incurred $2 million restructuring/reorganization expenses in Q1, expect additional $1 - $2 million in Q2. Net loss attributable to ATN stockholders $3 million, improvement from last year. Adjusted EBITDA $49 million, up 10% year-over-year. Margin improved 200 basis points to 26.7%. - In international and US segments, growth seen. Focus on cost discipline and margin expansion. - Balance sheet: Ended quarter with $123 million in cash, etc., up $6 million from year end. Debt $570 million, up $5 million. Net debt ratio improved. Net cash from operating activities decreased due to higher working capital requirements. CapEx flat at $21 million, reimbursable capex declined. - Outlook for 2026: ComNet subsidiaries to sell 214 towers, initial closing in Q2 with gross cash proceeds $250 - $270 million, additional closings $27 - $47 million over 12 months. Excluding tower transaction, full year adjusted EBITDA expected to increase modestly from 2025 levels (190 - 200 million). Post initial tower sale close, expected reduction in annual adjusted EBITDA by ~6 - 8 million. Plan to reassess and update 2026 outlook after initial closing. CapEx net of reimbursable spending expected $105 - $115 million. Financial priorities: Improve margins, expand cash flow, maintain healthy balance sheet.

International segment: Total revenue increased 2% to $96 million, adjusted EBITDA was $34 million, up 6% from the same period last year. Revenue increase reflects growth in carrier services, ancillary revenues, business and post-paid consumer mobility subscribers offsetting prepaid mobility subs decline. Fixed consumer revenue declined due to end of government support in USVI; like-to-like revenues grew 3% normalizing support revenue. Adjusted EBITDA increased and margin expanded by 140 basis points. Domestic segment: Revenue was $86 million, up about 2% year-over-year. Adjusted EBITDA increased 11% to $19 million. Higher carrier services revenue from key projects and fixed business revenues offset absence of construction revenues; normalizing construction revenues, revenues up 3% year over year. Higher revenue levels and cost discipline drove profitability increase.

• In February, ComNet subsidiaries entered agreement to sell 214 towers and related operations in southwestern US for up to $297 million. Initial closing in Q2 with gross cash proceeds $250 - $270 million, additional closings $27 - $47 million over 12 months tied to milestones. - Excluding tower transaction, full year 2026 adjusted EBITDA expected to increase modestly from 2025 levels in range 190 - 200 million. - Following initial tower sale close in Q2, expected reduction in annual adjusted EBITDA by ~6 - 8 million. Plan to reassess and update 2026 full year outlook after initial closing. - Capital expenditures net of reimbursable spending expected to remain in range $105 - $115 million for 2026.

Q: Why did you stop disclosing total broadband homes past and subscribers?

A: Felt it included legacy products being decommissioned, focusing on high-speed SAPs where effort and investment are put.

Q: What's the biggest bottleneck in driving faster growth or adoption in markets post investment phase?

A: Acknowledged additional competition especially on mobility side, but believe things are tracking right. Also need to focus on migration from copper network, execution on ground but heading in right direction.

Q: Update on bead or other government subsidy programs, pipeline, timing of awards won, build and monetization?

A: Working through existing programs (couple hundred million bucks). Provisional awards of B over ~$140 million in Southwest and Alaska, excited about them giving access to ~10,000 homes. Full year guidance for 2026 doesn't contemplate significant impact from BD in 2026 as process not completed yet