Elauwit Connection, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Revenue for the three months ended June 30, 2026, was $2.9 million, a 46% decrease from $5.3 million in the same period of 2025; revenue for the six months ended June 30, 2026, was $7.3 million, a 32% decrease from $10.8 million in the prior year period.
• Gross profit for the three months ended June 30, 2026, was $0.4 million compared to $0.8 million in the prior year; for the six months ended June 30, 2026, gross profit was $1.3 million compared to $2.1 million in the prior year.
• Operating expenses for the three months ended June 30, 2026, were $3.5 million compared to $1.5 million in the prior year; for the six months ended June 30, 2026, operating expenses were $6.6 million compared to $3.2 million in the prior year.
• Net loss for the three months ended June 30, 2026, was $3.1 million compared to $0.9 million in the prior year; for the six months ended June 30, 2026, net loss was $5.3 million compared to $1.3 million in the prior year.
• Adjusted EBITDA (Non-GAAP) for the three months ended June 30, 2026, was $(3.1) million compared to $(0.7) million in the prior year; for the six months ended June 30, 2026, Adjusted EBITDA was $(5.2) million compared to $(1.1) million in the prior year.
• Cash and cash equivalents totaled $1.2 million as of June 30, 2026, down from $6.2 million as of December 31, 2025.
• Total debt was $2.2 million as of June 30, 2026, including $1.6 million in related party debt.
• Deferred revenue was $5.3 million as of June 30, 2026, up from $2.9 million as of December 31, 2025.
• Accounts receivable were $3.6 million and inventories were $2.9 million as of June 30, 2026.

Guidance and Future Outlook

• The Company expects to exceed 50,000 units under contract before year-end 2026, representing a more than 46% annualized increase in contracted units for 2026.
• New construction activity is anticipated to be weighted to the second half of 2026, driving an uptick in both construction revenue and recurring service revenue.
• The Company anticipates the first operating cost and margin benefits from new enterprise resource planning and inventory platform investments will begin to show in the third and fourth quarters of 2026.
• Management expects significant construction activity in the second half of 2026 and substantial expansion of recurring service revenue as contracted units come online later this year and throughout 2027.

Business Segments and Product Lines

• Contracted units increased 16% sequentially to 42,687 and 33% year-over-year as of June 30, 2026.
• Activated units increased 11% sequentially to 27,134 and 94% year-over-year as of June 30, 2026.
• Billed units increased 15% sequentially to 22,967 and 163% year-over-year as of June 30, 2026.
• Year-to-date, the Company signed more than 10,000 units across 37 properties.
• In the second quarter, the Company signed almost 5,900 units across 21 properties in 10 states and the District of Columbia.
• The Company announced major wins with two large REIT owners in July 2026, contracting more than 4,100 units across 14 properties in five states.
• Backlog as of June 30, 2026, was $38.9 million, compared to $36 million as of June 30, 2025.

Market and Competitive Landscape

• The Company is sharpening its sales focus on key markets with higher density to increase operating efficiency while targeting smaller and middle-tier property owners for its Network-as-a-Service (NaaS) product.
• The Company's sales strategy focuses on large, multi-property operators, which has generated significant repeat awards across owner portfolios.
• The Company serves multifamily, student housing, and senior living communities with turnkey broadband and property-wide WiFi networks.

Risks and Challenges

• Revenue is variable quarter-to-quarter due to the timing of client construction and installation projects.
• The Company reported a stockholders' deficit of $(0.8) million as of June 30, 2026, compared to positive equity of $4.4 million as of December 31, 2025.
• Forward-looking statements are subject to risks including market conditions, the ability to improve financial performance, and achieving growth objectives.

Management Commentary and Tone

• Dan McDonough, Executive Chairman, stated that the second quarter was the company's best-ever quarter-over-quarter and year-over-year increase in contracted units, affirming that contracted units are the most important KPI.
• James Di Bartolo, Chief Financial Officer, noted that the change in quarterly revenue reflected the timing of large construction projects, which are variable and weighted to the second half of 2026.
• Management expressed confidence that the well-documented message regarding increased revenue, higher valuations, and resident satisfaction is resonating with owners and driving deals to closing.

Other Key Points

• The Company continues to invest in new enterprise resource planning and inventory platforms to drive greater visibility and cost control.
• The Company has a pipeline of opportunities similar in size to the recent REIT wins, which include hundreds of thousands of units of additional opportunity.
• The Company's Form 10-Q for the second quarter 2026 will be available on its investor relations website.
• A live webcast conference call was hosted on August 18, 2026, at 8:00 a.m. Eastern Time to discuss results.