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OTOVO Q1 2026 Webcast
Questions & Answers
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Questions & Answers
Otovo is now a global AI-enabled home energy service platform with a clear path to scale and durable profitability, targeting a 37 million+ unit market with a significant service gap. Thank you for attending. We will now open for questions. First question. Revenue fell 32% year-over-year. Is the core business shrinking? Jennifer, why don't you take that question, please?
Yeah, I think that's a really good question. I would say that we're pivoting away from the low-margin new build business, and we're really focusing on higher-margin service. Our core business is service, and quarter-over-quarter, we grew 10 x from essentially zero in the third quarter of last year. So that's where I would focus attention is on the service business.
The core business is expanding rapidly, not shrinking.
Moving on to the next one. Can you walk us through the EnergyAid economics?
We basically paid $ 18.7 million. You can see that on slide 13. We've laid out all the costs and purchase price for each acquisition, as we're supposed to $11.5 million Enterprise Value. If you look at 50/50, roughly, on stock and cash. I think it's important to take a look at, if you were to mention in the previous slides the $3 million in cost savings, we see that to be even potentially higher here with additional revenue on top. If you were to take out and say the company was profitable, say it was about $ 3.5 million, when you look at $ 3.5 million on the $ 11.5, that's pretty attractive multiple, to say the least. If you had hit the target, which we expect to hit here in the coming weeks and months on a $5 million run rate for just that business alone. That's 25% of a $ 20 million, roughly, top line rate. You're looking at about $5 million or near half of the purchase price already. It's pretty compelling economics
Can you give some more detail on the Freedom Solar? What did you actually acquire and for how much?
Yeah. Freedom was an acquisition of assets, and so it's the purchase of customer relationship rights. Our relationship with Freedom gives us access to their customer portfolio and warranties on 417 commercial installations. The way to think about this is really our entry into commercial solar O&M. Purchase price is on the slide that John just referenced. It's approximately $470,000.
On the credit facility bottleneck, the subscription SPV revolving credit facility matured in January 2026, with extension talks still ongoing. What is the bottleneck in finalizing this, and is this delay restricting your asset deployment in Switzerland?
We've been in conversations with our banks. I think that's moving along nicely. It's a very immaterial amount. The plan is just to settle that next year. As far as asset deployment in Switzerland, there hasn't been much in the last 12 months. It's not really having any impact.
It's kind of a non-event.