OWLS

• Business Transition Stage: Altin has completed multi-year investment in core infrastructure (regulatory licensing, banking connectivity, compliance, stablecoin settlement, technology) and crossed a key milestone in H1 2026, moving from infrastructure build-out to live commercial production and transaction processing. The company is now entering the scaling phase in the second half of 2026, with post-period operating data showing material acceleration in customer and transaction activity. H1 2026 financials still largely reflect the company's legacy business, not the full activity of the new scaled stablecoin business. Key metrics investors should focus on are production conversion speed (moving signed clients to recurring live transactions), transaction utilization growth post-onboarding, and translation of higher utilization into gross profit and operating leverage.
• Commercial Progress & Network Development: Transaction activity on the Circle Payment Network (CPN, a key stablecoin settlement rail on Altin's Harbor platform) has grown materially from early pilot stage at the start of 2026, alongside meaningful improvements in execution reliability. As of the call, Altin has ~80 signed enterprise client relationships, with a growing pipeline extending beyond this base, and demand is diversifying across payment providers, fintechs, financial institutions, and enterprises with cross-border settlement needs. ~80% of current CPN settled volume is tied to real-economy activity: 43% for cross-border supply chain and trade payments, 37% for fintech/institutional treasury and liquidity management, with no reliance on crypto speculation or consumer trading. Alpay is evolving from a single-corridor cross-border platform to a many-to-many global enterprise settlement network, with demand spanning both developed and emerging markets, validating that the settlement architecture is replicable across different regulatory and banking environments.
• Capabilities & Strategic Partnership Model: Altin has proven experience building and operating direct banking and settlement infrastructure, demonstrated by over $1.4 billion cumulative transaction volume processed through its direct U.S. banking rails. The company follows a "own what creates differentiation, integrate what creates reach" strategy for its multi-rail, multi-provider architecture: it will selectively deepen direct local infrastructure in markets with sufficient transaction density, demand, and favorable regulation, while partnering with leading financial institutions and payment networks in other markets to balance global reach and local depth. New product integration with Visa Direct will add a card funding channel for Alpay, with transaction activity expected to launch in Q4 2026, improving access and supporting broader adoption.
• Key Strategic Market Opportunities: Japan is a key strategic opportunity, leveraging Altin's existing relationship with SBI and local capabilities to connect Japanese fiat liquidity to global stablecoin rails for enterprise cross-border settlement as stablecoin adoption develops. Taiwan (Altin's home market) is another long-term opportunity: as a major global tech/semiconductor export hub with significant recurring cross-border commercial and treasury flows, Altin plans to integrate its existing global capabilities into Taiwan's local financial infrastructure as the local regulatory framework for stablecoins develops, focusing on supporting stablecoin on/off ramps, enterprise payment, and connectivity between Taiwan's financial system and global stablecoin networks (the company is not announcing a Taiwan stablecoin launch today, as the regulatory framework is still developing).
• 2026 Milestone: Altin targets cumulative processed payment volume across all Outpay operations to exceed $1 billion by the end of 2026, a separate milestone from the $1.4 billion of historical volume processed through U.S. direct banking rails that demonstrates the company's prior experience operating large-scale direct infrastructure. The company is focused on four mutually reinforcing growth curves: production conversion of signed clients, increasing wallet share with live clients, expanding geographic corridor coverage, and deepening settlement infrastructure in key markets, to build a self-reinforcing network flywheel.

• The previously stated long-term strategic target of ~$500 million in annual revenue from Altin and stablecoin-enabled payment services by 2030 is maintained, unchanged from prior guidance. This is a long-term target, not near-term financial guidance, and the path to this target is not expected to be linear.
• The long-term gross margin target for the stablecoin payment business at scale is maintained at 65% to 70%, driven by a mix shift to higher-margin stablecoin products, higher utilization of existing infrastructure, and reduced intermediary costs from deeper direct settlement connectivity. This is a long-term target, not a near-term margin expectation.
• The current normalized cash operating expense run rate (excluding share-based compensation, financing-related items, and settlement liquidity requirements) is approximately $1 million per month. Operating costs are not expected to grow at the same rate as revenue and transaction volume as the business scales, creating embedded operating leverage.
• Altin expects the progression of commercialization and financial improvement to become increasingly visible in financial results in the second half of 2026.

For the first half of 2026, Old Book Holdings (Altin Group) reported total revenue of $3.87 million, compared to $3.84 million in the first half of 2025. Breakdown by segment: 1. Tenant Services: Generated $2.11 million in revenue, compared to $2.17 million in H1 2025, accounting for approximately 54.5% of total H1 2026 revenue. 2. Hospitality Software: Revenue increased 24% year-over-year to $0.8 million, up from $0.64 million in H1 2025, accounting for approximately 20.7% of total H1 2026 revenue. 3. Taiwan Payment Gateway (historical business): This segment contributed the majority of the company's historical payment revenue, but its contribution to H1 2026 results has declined as the company transitions to stablecoin-enabled payments. 4. Outpay (stablecoin-enabled cross-border payment and settlement): This new growth segment was still in the early commercialization stage during H1 2026, with most clients in onboarding/integration, so it contributed only a small, immaterial amount to H1 2026 revenue. Reported gross margin for H1 2026 was 6.4% (down from 12.5% YoY due to share-based compensation in cost of revenue); adjusted gross margin (excluding share-based compensation) improved to 15.3% from 12.5% YoY. Reported net loss was $18.82 million, compared to $3.91 million in H1 2025, with the increase driven largely by non-cash items ($10.4 million in share-based compensation, $2.5 million in convertible note financing costs, and the absence of $2.5 million in prior-year foreign exchange gains); adjusted operating expenses (excluding share-based compensation) rose only 6.6% YoY to $7.24 million.

• All forward-looking statements regarding commercialization progress, transaction growth, revenue and margin targets, and market expansion are subject to risks and uncertainties that could cause actual results to differ materially from current expectations, as detailed in filings with the U.S. Securities and Exchange Commission.
• Commercialization timing is dependent on the pace of enterprise client activation and progression from pilot to recurring production, which may be slower than currently expected.
• Strategic expansion into new markets (including Japan and Taiwan) is subject to commercial, technical, and regulatory approvals and developments, which may delay or prevent the realization of expected opportunities.
• Transaction volume growth does not necessarily translate to proportional revenue growth, as transaction economics can vary by period, settlement model, customer profile, and service mix.
• The company must manage settlement liquidity separately from operating costs as activity scales, and requires careful capital management to support continued investment in the long-term growth opportunity.

There is no Question and Answer section included in the provided pre-recorded earnings call transcript.