ELWT

Core Business Model & Key Growth KPIs

• Elauwit provides differentiated fiber-based gigabit broadband and WiFi 6 infrastructure services to multifamily properties, embedding internet costs directly into resident leases for a simplified resident experience and shared recurring revenue for property owners, operating in a $26 billion total addressable market.
• Management tracks three nested leading KPIs to forecast long-term recurring revenue growth: contracted units (units under contract, whether active or waiting for installation), activated units (fully installed but not yet fully billing during onboarding), and billed units (units actively generating recurring revenue).
• As of June 30, 2026: total contracted units grew 33% year-over-year to 42,687; activated units grew 94% year-over-year to 27,134; billed units grew 163% year-over-year to 22,967. 5,900 new units were contracted in Q2 2026, representing a 16% quarter-over-quarter increase, with over 10,000 new units contracted year-to-date.

Sales & Pipeline Updates

• Total awarded (written or verbal) units through Q2 end reached 16,000 across 57 properties and 21 ownership groups, scheduled for installation in 2026 and 2027. The active sales pipeline includes more than 500 properties and 98,000 tracked potential units, with a much larger addressable market beyond this pipeline.
• After testing multiple sales strategies in the first half of 2026, management refined its approach to prioritize: 1) higher-density markets for improved selling and installation efficiency, 2) a "land and expand" strategy with large existing property owners to secure incremental portfolio additions, and 3) targeting middle-tier property owners managing 2,000 to 5,000 total units, a large segment of the addressable market.
• Recent wins with two large national multifamily REITs totaling 4,100 contracted units provide a pipeline of hundreds of thousands of additional incremental potential units across the REITs' full portfolios; these opportunities are separate from the 98,000 units in the broader active pipeline.

Operational Efficiency Initiatives

• Management has invested in updated business infrastructure, including next-generation ERP, advanced inventory platforms, and custom/third-party automation tools to improve efficiency and reduce administrative work.
• AI and LLM tools are being implemented to unify vendor platforms on a single dashboard, accelerating problem resolution and proactive service maintenance.
• The project management office was restructured into specialized pods for new construction and conversion projects, pairing senior managers with on-site leads for improved stakeholder communication.
• The network operations center and account management teams are being scaled to maintain consistent service quality as the customer base grows.
• Annualized run-rate operating cost reductions of $1.9 million have been identified, with benefits expected to materialize starting in the second half of 2026.

• Management reaffirms it remains on track to meet full-year 2026 goals, with nearly all 2026 new construction activity weighted to the second half of the year, so an uptick in both construction revenue and recurring services revenue from the growing billed unit base is expected in H2 2026.
• Management expects to exceed 50,000 total contracted units by the end of 2026, which would represent a more than 46% annualized increase in contracted units for the full year.
• Operating results and net loss are expected to improve in the second half of 2026 and continue improving into 2027, driven by $1.9 million in annualized operating cost reductions, increased construction activity, and steadily growing billed unit volumes.
• As the business scales, construction project volume is expected to become more evenly distributed across quarters, and recurring services revenue will become a larger share of total revenue, smoothing overall quarterly revenue volatility.

Elauwit reports two core revenue streams: construction/installation revenue and long-term recurring services revenue. For Q2 2026, total company revenue was $2.9 million, a 46% year-over-year decline of $2.5 million, driven entirely by timing lags in construction contract project recognition, which are lumpy and unevenly distributed year-to-date. For the first half of 2026, total revenue was $7.3 million, a 32.4% year-over-year decline of $3.5 million, also due to delayed new construction activity that is weighted to the second half of 2026. Gross profit for Q2 2026 was $0.4 million, down from $0.8 million year-over-year, while gross margin improved slightly to 15.5% from 15.1% year-over-year. Management targets future network construction gross margins of ~20% and recurring services gross margins of 10-15%. Total operating expenses for Q2 2026 were $3.5 million, up from $1.5 million year-over-year, driven by public company listing costs, sales team investments, and long-term efficiency initiative implementation costs. Operating loss was $3.1 million, up from a $0.7 million operating loss year-over-year; net loss also increased to $3.1 million from $0.9 million year-over-year. As of Q2 end, contracted backlog across both segments totaled more than $38.9 million, up from $35.9 million year-over-year.

• Construction revenue depends on external scheduling by third-party general contractors for new development projects, so Elauwit has limited control over the timing of construction revenue recognition, leading to potential quarterly revenue volatility that has impacted Q2 2026 results.
• Forward-looking projections for contracted unit growth, revenue, and profitability are not guarantees of future performance and are subject to material risks and uncertainties that could cause actual results to differ materially from current expectations, including risks detailed in Elauwit's SEC filings.
• Conversion of existing properties from incumbent carriers depends on property owners securing contract release from existing providers, which acts as an external gating factor that can delay new award conversions.

Q: Derek Greenberg of Maxim Group asked about the ramp progress of the expanded sales team, if it is fully operational, and whether additional sales team investments are planned for H2 2026.

A: Management explained that the first half of 2026 was an R&D phase for sales, with broad testing of strategies to identify high-yield approaches. Now that the strategy has refined to focus on high-density markets and existing client expansion, sales expenses will decrease in the short term while sales velocity increases, with incremental investment planned later as the refined strategy scales.

Q: Greenberg asked for the mix of new contracts between existing customer portfolio conversions and new logos, and between service types.

A: Management reported an uptick in conversions of existing properties (as opposed to new construction projects), which accelerates the timeline from contracting to revenue and profit recognition. There has also been a small uptick in NaaS contracts for existing properties, growing that share of the business.

Q: Greenberg asked if Elauwit has experienced any supply chain or tariff impacts to its operations.

A: Management confirmed that Elauwit has not encountered any significant supply chain disruptions or negative impacts from tariffs in Q2 2026 and remains resilient to these risks.

Q: George Sutton of Craig-Hallum asked why construction activity was slow in Q2 2026 and what to expect from the H2 2026 construction ramp.

A: Management clarified that Elauwit has little control over new construction timing, as it is sequenced with third-party general contractors' new development schedules. Most H2 2026 construction is conversion of existing properties, which is far more predictable and has a shorter timeline from contracting to revenue recognition, supporting stronger H2 results.