MindWalk Holdings Corp. Q2 FY2026 earnings call

• Divested noncore wet lab operations in the Netherlands, generating approximately $14.3 million in net proceeds, which strengthened the balance sheet and removed a capital-intensive footprint not aligned with BioNative AI direction.
• Rebranded ImmunoPrecise Antibodies, BioStrand, and Talem under the MindWalk identity with HYFT as the NASDAQ ticker, reflecting an integrated architecture centered on software, data, and selected lab capabilities.
• Advanced GLP1 and longevity programs using LensAI, with LensAI identifying GLP1 receptor agonists with third-party validated in vitro assay receptor activation above semaglutide and applying pattern-led approach to a second pathway linked to cellular resistance and aging biology.
• Dengue vaccine initiative continued to move forward, with LensAI scanning pathogen proteomes for strict HYFT patterns with specific biochemical properties.
• Appointed Scott Areglado as Chief Financial Officer and Dr. Thomas Lynch as Chief Business Officer; Scott aligns investment in the platform with balanced capital allocation, while Tom leads global commercialization for LensAI.
• Completed corporate rebranding to MindWalk, aligning communications and investor materials with the patented HYFT technology.

In the second quarter fiscal year 2026, MindWalk achieved 54% year-over-year revenue growth, reaching $4.1 million. Gross profit increased by 94% to $2.7 million, resulting in a 65% gross margin for continuing operations. Revenue growth was driven primarily by improved project revenue and better utilization, while gross profit growth and margin expansion were due to increased operating leverage on fixed costs and cost of sales, along with a mix of higher-margin work.

• Expect operating expenses to remain focused on advancing the platform, strengthening commercial capabilities, and supporting long-term growth drivers.
• Believe they can maintain the 65% gross profit margin going forward and expect some increases in the margin over time as more scalable programs with fixed costs are balanced.
• Intend to continue investing in the HYFT-powered platform, infrastructure, and development of assets like GLP1 and dengue vaccine initiatives using the $16.5 million cash on hand.

• Global political and economic conditions could impact results.
• Changes in market dynamics, competitive developments, and other business risks could cause actual results to differ materially from forward-looking statements.
• Risk of falling behind in data quality, model design, and biological grounding, leading to structural disadvantages in cost, speed, and technical success.

Q: What's the benefit of the structured portfolio for current shareholders and how does it prevent dilution?

A: The Cayman segregated portfolio structure allows investors to invest directly in specific assets without diluting equity in the parent company. IP for each program is ring-fenced and protected, with engagement of Walkers law firm to finalize legal framework covering patents, governance, and regulatory considerations. This provides flexibility to fund programs individually, maintain strong IP protection, and spin assets out in the future, protecting existing investors from dilution.

Q: What details can be expected around the structure at the J.P. Morgan investor conference?

A: Updates on assets will be provided, but timing and specific information release are governed by factors to protect patent rights and IP portfolio. The structure is similar to Talem, with Cayman offering protection and beneficial capital deployment, but details will be dictated by the process, including what's set in stone vs. being negotiated.

Q: What do the expanded gross margins tell about current projects and future margin expectations?

A: Expanded gross margins indicate scalable programs with more fixed operating costs. They expect to maintain the 65% gross profit margin going forward and anticipate some increases in the margin over time as more scalable programs with fixed costs are balanced.

Q: How is the proceeds from the Netherlands divestiture being spent?

A: Proceeds will be used for investing in commercial initiatives to grow the footprint of LensAI, Canadian lab operations, and R&D to develop assets and LensAI's features and functionality.

Q: What's Dr. Lynch's mandate and business development focus?

A: Dr. Lynch's mandate is related to the deployment of capital, focusing on the scalability of the SaaS model, data management deployment supporting the SaaS model, integration of software to ensure scalability and usefulness, building a centralized sales team, and creating a global unified sales and business development team aligned to analyze KPIs and hit goals.

Q: Clarity on share buybacks and potential public offering?

A: The company has not been buying back shares. The $30 million potential public offering is for an at-the-market facility, not an active fundraising. Use of the ATM would depend on share price, liquidity, and growth, with expectation of using it opportunistically if share price and growth warrant it.

Q: Closing comments?

A: Recapped the 54% revenue growth, nearly doubled gross profit to $2.7 million with 65% margin, sale of noncore facilities leaving $16.5 million in cash, progress in GLP1, dengue, and corporate structure alignments, plan to establish Cayman segregated portfolio structure for AI-driven pipeline, and intent to provide formal update at J.P. Morgan Healthcare Conference with new information on lead programs and capital/partnering approach.