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DATE

Thursday, Aug. 6, 2026 at 8:30 a.m. ET

CALL PARTICIPANTS

• Head of Investor Relations and Corporate Development - Noah Silver
• Co-founder and Chief Executive Officer - Daniel Ramot
• Chief Financial Officer - Clara Fain

TAKEAWAYS

• Revenue -- $135.7 million, representing 27% growth year over year.
• Annual Run-Rate Revenue -- $542.8 million, growing 27% year over year.
• Customer Count -- 847 distinct legal entities, a 23% increase year over year.
• Adjusted EBITDA -- Negative $3.4 million, reflecting a 62% improvement from negative $9.1 million in the prior year.
• Adjusted Net Loss Per Share -- Negative $0.01, compared to negative $0.72 in the same period last year.
• Sales Pipeline -- Over $700 million in gross annual contract value, representing a doubling year over year for the second consecutive quarter.
• United States Revenue -- $103.1 million, growing 35% year over year and accounting for 76% of total revenue.
• Large Customers -- 114 customers with annual run-rate revenue over $1 million, a 36% increase year over year.
• Annualized Revenue Per Customer -- $641,000, the highest level in the company's history.
• Adjusted Gross Margin -- 41%, up from 40% in the prior year due to a favorable revenue mix including higher non-subscription revenue.
• Research and Development Expense -- 16% of revenue, down from 20% last year, despite a $2.2 million negative impact from the Israeli shekel.
• Sales and Marketing Expense -- 13% of revenue, compared to 14% in the prior year, driven by flywheel effects and AI-enabled efficiency.
• Cash and Cash Equivalents -- $335.9 million as of June 30, 2026.
• Debt -- Zero outstanding debt on the balance sheet.
• Q3 Revenue Guidance -- $137.6 million to $138.2 million, representing 25.5% to 26% growth year over year.
• Q3 Adjusted EBITDA Guidance -- Negative $4.5 million to negative $3.5 million, reflecting seasonal patterns and investment in new launches.
• Full Year 2026 Revenue Guidance -- Raised to $550 million to $553 million, representing 26.6% to 27.3% growth year over year.
• Full Year 2026 Adjusted EBITDA Guidance -- Negative $12.5 million to negative $7.5 million.
• Profitability Target -- Management reiterated its goal to deliver positive adjusted EBITDA in the fourth quarter of 2026.
• Acquisition Impact -- The Downtowner acquisition contributed 94 customers to the total platform count.

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RISKS

• CFO Fain stated, "The shekel had a negative impact of approximately $2.2 million on adjusted R&D expenses when compared to Q2 2025," noting currency volatility in the company's largest R&D center.
• CFO Fain stated, "We expect... non-subscription revenue to revert to a lower level within our typical range," following a quarter where non-subscription revenue reached the high end of typical ranges.

SUMMARY

Management reported expansion into network-wide transit operations and specialized school transportation. The company stated that technology integration, particularly AI-driven efficiency, is central to its path toward adjusted EBITDA profitability. Management also noted that a growing pipeline of government contracts is supported by increased municipal focus on transit affordability and operational transparency. Management confirmed that international growth remains strong, particularly in the United Kingdom and Europe, while the United States remains the primary revenue driver.

• CEO Ramot stated, "With 95% of our code now written by and with AI, our engineering team is able to ship new features and products at a pace we could not have imagined two years ago."
• Management reported that a city in Alabama transitioned from a microtransit solution to a full network solution, closing bus driver shortages and extending transit access to 20% of the population that previously had none.
• The schools vertical focuses on specialized transportation for students in foster housing or with disabilities, with management expecting new projects to contribute to revenue growth starting in the fourth quarter.
• CEO Ramot reported that one municipal customer using the company's AI Labs solution was "able to reduce the manual time spent on the processing of public records requests by 92%."
• Ramot indicated that being a public entity has increased credibility with municipal customers, aiding the company's pursuit of large-scale network contracts.
• CFO Fain noted that while approximately one third of growth historically comes from new customers, the current pipeline shows a slightly higher weight toward new logos compared to existing customer expansions.

INDUSTRY GLOSSARY

• TransitTech: A specialized public mobility platform designed to integrate multiple transportation modes into a unified network.
• Microtransit: Flexible, on-demand transportation services using smaller vehicles to supplement traditional transit.
• Paratransit: Specialized transportation services for individuals with disabilities or limited mobility.
• NEMT: Non-emergency medical transportation for healthcare-related journeys.
• ARR: Annual run rate, a projection of annual revenue based on the current quarter's performance.
• ACV: Annual contract value, representing the incremental revenue expected from new or expanded contracts over 12 months.
• Agentic AI: Artificial intelligence systems capable of autonomously executing multi-step workflows and complex tasks.
• RPO: Remaining performance obligations, representing the total value of contracted revenue not yet recognized.

Full Conference Call Transcript

Unknown Executive: Good morning, and welcome, everyone, to Via's Second Quarter 2026 Earnings Call. I'm [ Noah Silver ], Via's Head of Investor Relations and Corporate Development. With me today are Daniel Ramot, Via's Co-Founder and CEO; and Clara Fain, Via's Chief Financial Officer. During today's call, Daniel will review our second quarter 2026 business update before handing it off to Clara to discuss financial results and our guidance for the rest of the year. We will then open the call to Q&A. In addition to prepared remarks on this call, additional information can be found in our investor presentation, press release and SEC filings on our Investor Relations website at investors.ridewithvia.com.

Before we get started, we want to draw your attention to the safe harbor statement included in our press release and investor presentation. Items we discuss today will include forward-looking statements about topics, including, but not limited to, our future financial performance, projections and management's plans and objectives for future operations. Actual results may differ materially from those presented in the forward-looking statements and are subject to risks and uncertainties described more fully in our SEC filings, including our quarterly report on Form 10-Q. Any forward-looking statements that we make on this call are based on assumptions as of today, August 6, 2026.

Unless required by law, we undertake no obligation to update or revise these statements as a result of new information or future events. We would also like to point out that our discussion today will include certain non-GAAP financial measures in addition to, not as a substitute for financial measures calculated in accordance with generally accepted accounting principles. Definitions of these non-GAAP financial measures, along with reconciliations of non-GAAP to GAAP financial measures are provided in our press release and our investor presentation. And now I'll hand it over to Daniel.

Daniel Ramot: Thanks, Noah, and thank you, everyone, for joining us today. We're delighted to report another outstanding quarter for Via. In Q2, our revenue grew 27% year-over-year to $136 million. The number of customers on our platform grew to 847, up 23% year-over-year. Q2 adjusted EBITDA was negative $3.4 million and adjusted net loss per share was negative $0.01, a major step towards our target of Q4 adjusted EBITDA profitability. Furthermore, our pipeline doubled year-over-year for the second quarter in a row, laying the foundation for accelerating revenue growth in the coming quarters. The public transit market is at a moment of inflection, and Via is perfectly positioned to capitalize on the moment and capture this enormous market.

The need for transit has never been greater. For many households, the rising cost of car ownership have become untenable. Aging populations are increasingly dependent on transit for their mobility. In the United States, our transportation infrastructure is falling further behind that of our economic peers. Nearly 40% of roads in the country are graded as being in poor or mediocre condition. At the same time, public transit budgets are not growing fast enough. There is tremendous demand for transit, but also powerful pressure to provide it ever more efficiently. There is a growing recognition that America can no longer afford the status quo.

Historically, transportation investment has been measured by inputs, such as dollars spent, miles of track built, buses deployed rather than outcomes. That accountability gap is real and has said legitimate skepticism about the value of public transit spending. But today, the technology exists to build public transit systems that are not only smart, data-driven and efficient, but also deliver outcomes that can be clearly measured and tracked. AI is accelerating that development, allowing for the creation of systems that work proactively to optimize the delivery of transportation. Via is leading the charge to build efficient outcomes-based public transit. We are both the catalyst of this transit revolution and the ones powering it at scale.

We have achieved this position through relentless focus on the execution of a simple strategy, to build the world's most intelligent and most complete end-to-end platform for public transit. At the core of our platform is our purpose-built AI-powered software, which leverages proprietary data and expertise we've amassed over more than a decade. And while we have built the most advanced software platform for public transit, we are not solely a software company. We offer a full stack transit solution with a broad suite of technology-enabled services that allow us to directly participate in the delivery of transit services to end customers.

Importantly, our software is embedded in every aspect of our services, driving significant efficiency over legacy transit providers who make limited use of technology in their operations. And our services create a powerful data feedback loop that supports continuous improvement of our software and AI models. Via's rapid and durable revenue growth is a testament to the success of our strategy. As we look ahead to the second half of the year and to 2027, we're encouraged by the fact that our pipeline doubled year-over-year for the second quarter in a row. Our pipeline is measured in growth annual contract value.

This is the annual contract value of opportunities with both new and existing customers that is incremental to our current revenue. The rapid expansion of our pipeline is a strong indication that we're just getting started on unlocking our huge market and that we have an exciting opportunity to accelerate revenue growth in the coming quarters. A significant portion of our pipeline growth is driven by network opportunities, where we leverage our end-to-end platform to take over entire transit networks. Network deals are incredibly energizing for our team as they allow us to drive greatly improved outcomes for customers.

In Q2, we continue to see strong progress with network deals at all stages of the pipeline, and these deals continue to represent the key opportunity for growth for the company. For example, a city in Alabama that started with Via's microtransit solution is now leveraging our full network solution to completely transform their entire transit system. Prior to Via, the city's transit network ran on a piecemeal system of legacy software, making it difficult for agency staff to perform their jobs and providing a lack of visibility into performance. A combination of driver staffing shortages and lack of transparency led to 20% of scheduled buses failing to run as planned.

For residents across much of the city, fewer than 1/6 of the city's jobs were reachable by transit in an hour or less. Now leveraging Via technology, the city was able to digitize and automate driver recruitment, vetting and onboarding processes, reducing the costs associated with workforce management and closing the staffing shortages. A redesign of the entire network is rolling out that for the same annual budget will extend transit access to 20% of the city's population that previously had no transit access at all, connecting residents to vital economic, health care and educational opportunities. I also could not be more excited by the growth of our schools vertical.

In Q3 2025, our first quarter as a public company, we identified school transit as a vertical that we believe had tremendous opportunity for growth. Now as we approach the new school year, we're seeing a large number of new projects slated to launch this summer and fall. Our schools product is primarily focused on providing alternative transportation services. These programs transport students who are poorly served by traditional yellow school buses, students in foster or shelter housing, students with complex custody arrangements and students with disabilities. For a school district in the Midwest that implemented Via student transit solution, the results were transformative.

While we may take it for granted that we can track our pizza from the moment it leaves the oven, for the parents and caregivers who rely on these programs, there was previously no way to track pickups, drop-offs or view their child's upcoming ride schedule. For the district, the ability to monitor these trips and ensure reliable on-time performance has completely transformed their ability to guarantee students arrive at school safely, on time and ready to focus on learning. AI is at the core of our strategy and is transforming our business. We are embedding AI throughout our platform to deliver better outcomes for our customers.

We are deploying new AI-native products at an accelerating pace from our voice AI system, which now automates passenger calls in dozens of cities to AI-powered dispatch, planning copilots and proactive network optimization. These products drive immediate ROI for our customers and increase the stickiness of our platform. We are also leveraging AI to drive internal efficiency. With 95% of our code now written by and with AI, our engineering team is able to ship new features and products at a pace we could not have imagined two years ago. AI is also accelerating our operations from how we respond to RFPs to how we manage fleets and dispatch rides.

These efficiencies are directly contributing to our operating leverage and our path to profitability. Lastly, but certainly not least, we're delighted to report we've successfully launched our first projects with AI Labs. The power of Via's platform is in the ability to intelligently join troves of local disparate and in many cases, analog data sources scattered across different verticals and leverage AI to generate actionable insights. We've seen strong demand from our municipal customers for AI solutions that can similarly unlock powerful optimization across the siloed data and cumbersome operational practices of local governments.

Our goal is to amplify the capacity and capabilities of the employees who are tasked with performing critical government services, democratizing access to the models and agentic capabilities that are becoming ubiquitous while ensuring that critical government data remains protected. The AI Labs projects we've launched range from agentic workflows to informed citation decisions to snow removal optimization to automated permitting. One customer was able to reduce the manual time spent on the processing of public records requests by 92% with the Agentic solution developed by our AI Labs engineers. We're incredibly excited about the potential for AI Labs as we scale it across cities and government functions.

And with that, I'll pass it over to Clara to review the financial highlights for the quarter and our guidance for the year.

Clara Fain: Thank you, Daniel. I'm happy to report that Q2 was another very strong quarter for revenue and profitability. This is our fourth quarter as a public company. And for the fourth consecutive quarter, we demonstrated our commitment to consistent execution and durable growth. Over the past quarter, we not only achieved robust revenue growth and record pipeline, we also continue to make significant progress on our path to profitability with adjusted net loss under $1 million or about $0.01 per share. Let's start with the top line. In Q2 2026, our annual run rate revenue, which is defined as our quarterly revenue multiplied by 4, was $543 million, representing a year-over-year increase of 27%.

Our growth was once again fueled by strong momentum in the United States, which represents 76% of our total revenue and where revenue was up 35% year-over-year. Pipeline continued to grow very rapidly and surpassed $700 million in gross annual contract value. We closed the quarter with 847 customers, representing a year-over-year increase of 23%. We continue to benefit from flywheel effects where the success of existing customers drives referenceability and allows us to rapidly grow revenue without a corresponding increase in sales and marketing investment. We continue to benefit from flywheel effects where the success of existing customers drives referenceability and allows us to rapidly grow revenue without a corresponding increase in sales and marketing investment.

Our largest customers continue to drive strong growth. We ended the quarter with 114 customers with annual run rate revenue over $1 million, a 36% year-over-year growth. This growth in large customers contributed to higher annualized revenue per customer, which now stands at $641,000, its highest point in Via's history. Our significant momentum with network opportunities gives us confidence in our ability to continue growing our base of large customers. Now let's dive into our margins and expenses presented on an adjusted basis. Our adjusted gross margin was 41% this quarter, up from 40% in Q2 2025, thanks to a more favorable revenue mix.

In particular, non-subscription revenue came in at the high end of our typical range and contributed favorably to the higher gross margin. We expect gross margin in Q2 to be more consistent with prior quarters and non-subscription revenue to revert to a lower level within our typical range. In Q2 2026, we spent 13% of our revenue on sales and marketing compared to 14% in Q2 2025. We continue to benefit from flywheel effects and AI-driven initiatives that are enabling sales and yielding measurable efficiency gains. We also spent 15% of revenue on G&A, which was consistent year-over-year.

R&D expenses represented 16% of revenue compared to 20% in Q2 2025, demonstrating effective leverage in the business despite the continued strength of the Israeli shekel, which is the currency of our largest R&D center. The shekel had a negative impact of approximately $2.2 million on adjusted R&D expenses when compared to Q2 2025. We wrapped up Q2 2026 with a negative 2.5% adjusted EBITDA margin, our narrowest loss on record. This is a meaningful improvement over negative 8.5% in Q2 2025 and demonstrates a significant progress on our path to profitability. Finally, our balance sheet remains robust with $336 million of cash and no outstanding debt.

It is also worth noting that adjusted net losses per share was on the edge of profitability this quarter at negative $0.01 per share compared to negative $0.72 per share in Q2 2025. Over the past few years, we have been able to drive significant operating leverage while generating rapid revenue growth. Quarterly platform revenue has grown from $53 million in Q1 2023 to $136 million in Q2 2026, while over the same period, non-GAAP quarterly operating expenses grew from $47 million to $60 million. We believe that we can continue to execute with the same level of discipline for the remainder of the year. Now let's turn to guidance.

For the third quarter of 2026, we expect revenue to be between $137.6 million and $138.2 million, representing a 25.5% to 26% year-over-year growth. We expect adjusted EBITDA to be between negative $4.5 million and negative $3.5 million. Our Q3 adjusted EBITDA guidance reflects typical seasonal patterns as many of our customers operate at lower volumes during the summer months as well as deliberate investment in launching new network and school transportation customers that we expect to contribute meaningful revenue growth in Q4 and beyond. For the full year 2026, we are raising our revenue guidance to $550 million to $553 million, representing a 26.6% to 27.3% year-over-year growth.

We are maintaining our adjusted EBITDA guidance of negative $12.5 million to negative $7.5 million. Additionally, we reiterate our goal to deliver our first quarter of profitability in Q4 2026 with positive adjusted EBITDA, which will be a major milestone for Via. Looking through the end of 2026 and beyond, we feel very good about our trajectory heading into 2027. Our pipeline is at record levels. Our sales team is executing and the pace of launches ramping into next year is paving the way for accelerating our durable growth trajectory. With that, I'd like to thank you all again and turn it back to the operator so we can take some questions.

Operator: [Operator Instructions] Your first question comes from the line of Michael Turrin from Wells Fargo.

Michael Turrin: Nice job with the 2Q results. I think just to start, maybe if you can go back, Daniel, Clara, and maybe just expand on the drivers of pipeline expansion. We certainly appreciate you quantifying pipeline. Just what you're seeing there, how it's evolved since Via became a public company? And maybe just if you could expand around the visibility that gives you the forward growth if we're thinking about how far into the future, some of that near-term engagement could extend and what it means for durability of growth from your perspective, I think that's all useful.

Daniel Ramot: Michael, thanks for the question. I think it's a great question. If I take a step back and look at where we are since we've gone public and how -- what's driving the growth, in particular, in the pipeline, I think there are a few factors that as I think about sort of the near term and then looking further out. In the near term, what we're seeing, if you sort of think of, say, today, tomorrow growth, this is driven by the traditional growth vectors that we have, microtransit, paratransit, planning, all of our usual products.

But really, where you're seeing some of this really strong growth that's coming through in the pipeline, this doubling of the pipeline, a lot of that is coming from our ability -- increasing ability to sell the entire platform, which we talked about over the last few quarters as well. It is what we're referring to as network opportunities or network deals where we're able to approach agencies with -- and cities with the proposition that we will be able to take over their entire transit network and really transform it in a meaningful way.

That's something that we've been working towards for several years. first of all, of course, on the product to build out the entire product on the suite of services that we've developed and through the sales process, developing that credibility that's so critical because these sales are so dependent on references. And so as we have put together that program, that's starting to translate into real results. You're seeing that in the pipeline. We're starting to see that come through in the revenue, some of the wins, the network wins that we've been driving. So that's sort of where a lot of the growth is coming from. That's the core of the growth today and tomorrow.

As we look a little bit further, if we're layering sort of S-curves of growth, I think that's what's driving the current S-curve. The next S-curve is coming from schools in our view. That's where we believe it's coming from the schools vertical. We have a huge opportunity. We're seeing really nice traction, some new launches coming up. Obviously, it's tied to the school year. So that's going to come up over the summer and in the fall. Very excited about the opportunity there in schools. And then if you look further out, and that's obviously very early stage still, but exciting. We're starting to see some real traction.

That's where we're expanding beyond transit and schools into the broader GovTech space with Via AI Labs, starting to sell solutions at the municipal level that span a broad range. And there, we see a remarkable opportunity in the long term.

Michael Turrin: Just as a follow-up, if I may, Clara, Daniel touched on a little bit with schools, but maybe just also if you could remind us on seasonality, if there's anything to be mindful within some of the key subsegments, specifically on the bigger network decisions or within schools, if there are seasonal buying patterns for us to be mindful of at all?

Clara Fain: Thanks, Michael. Yes, there -- that's a good point. There's some seasonality for the school business where the school contracts tend to launch at the end of Q3 in September. So for next quarter, we expect some school adds on the customer count, and that tends to drive a little bit of seasonality on the revenue per customer as they only have one month for the quarter. Other than that, as a whole, we believe that it will continue to help drive growth.

Operator: Your next question comes from the line of John DiFucci with Guggenheim Securities.

John DiFucci: I think Michael asked, I think, the most important question, but I'm going to expand on it a little bit. So, Daniel, on that pipeline and Clara, to be clear, Daniel, you talked about network deals. I just want to -- is that pipeline going to change your mix of product and services? Because as you know, there's a keen eye on your gross margins and the services are lower gross margin. And if you're selling these network deals that are everything, is that going to change your mix going forward and pressure gross margins?

Clara Fain: John, thanks for the question. Good to see you. We -- listen, what we're doing right now is that we are in the process of transforming this legacy industry with our technology and our platforms, technology and tech-enabled services. and we're seeing tremendous results. And with the growth in the pipeline, the growth in the revenue. And as of today, we are -- we don't see any change in our kind of mix overall. So we're confident in continuing to be able to execute on our gross margin plan. As a reminder, we laid out a plan to expand our gross margins. Obviously, this quarter was a step in the good direction.

And the plan relies on launching new solutions that are accretive. So, obviously, the full network solutions have different -- can have different margin profiles, but some of them are accretive, some of them less. It really depends on the exact deal. Schools tend to be quite accretive. And of course, AI Labs is very accretive. So I think going forward, there's definitely an opportunity to continue to expand gross margins, and we're very much focused on that.

John DiFucci: That's great. That's great to hear, Clara. And I guess on a similar path here, that pipeline increased $50 million sequentially year-over-year doubling. That -- I just want to make sure that's all new ARR. Does that include renewals at all? I think I know the answer to that, but I want to be clear that everybody does.

Clara Fain: Yes. To be clear, it does not include renewals. It's all net new ARR, so annual revenue from existing or new customers.

John DiFucci: And then just one last one on this, a little one. But usually, most companies want to see a 1:3 ratio of close to pipeline. And if I'm right, I think yours is actually typically a higher ratio of close, which is a good thing. And I think that has to do with sort of what we call the intimate relationship you have with your customers. But forget about that for just a second. I just want to make sure that because I know your sales cycle is -- can be like up to nine months and then it could be two or three quarters before it's implemented. Is this pipeline typically -- is this about a year pipeline?

I mean, of course, things it can expand out and they can come back in. Because when I look at your rate, when I look at that pipeline relative to what's implied in new ARR coming online this year, it's just -- it's very different. It's a very different ratio. It's like half that. It's like 1:6 versus 1:3. And of course, numbers are going to go up a little bit after this quarter. It's a nice job on that. But am I thinking about all this right?

Clara Fain: I think you're thinking about it right, John. For us, this is a leading indicator of step function increase in revenue and a potential acceleration of our revenue. We're very excited about it. As you said, we have to execute on it at the right win rate, which we're confident we can do, but that's definitely a leading indicator for acceleration of growth.

Operator: Your next question comes from the line of Chris Quintero with Morgan Stanley.

Christopher Quintero: I wanted to ask another question on the pipeline that you called out. Can you remind us again like what's the typical conversion time line from when you sign that -- when you have that pipeline to when that actually translates to your contracted revenue?

Daniel Ramot: Chris, we typically see from a sales cycle, about 9 to 10 months, as John mentioned, that's pretty typical and been very consistent for us for quite a long time. And then the implementation on average is two to three months. So you're looking at about a year from when a deal enters our pipeline until typically we start to recognize revenue. Chris, I was going to add -- worth mentioning that there's a -- when you think about the pipeline, of course, those are the averages, so you have a distribution, right? Some deals are going to start to contribute revenue sooner and other deals are going to take longer.

These are maybe the sol, but just the average that we're talking about here.

Christopher Quintero: Got it. That's very helpful. And then we saw some regulatory developments over the past few months, U.S. conference of mayors, they passed the resolution. There was also, I believe, some funding from the Federal Transit Administration that got approved. So just curious kind of what you're seeing from maybe some of those recent regulatory government changes in terms of your pipeline and what you're seeing there?

Daniel Ramot: Yes, that's a great question. Our feeling is that the overall climate for public transit continues to be very positive with bipartisan support, certainly in the U.S. with bipartisan support across the country, both at the federal level and at the local level. You're absolutely right that there are some encouraging signs. Certainly, the conference of mayors was very encouraging. I think particularly at the mayor level, if you're speaking with mayors, there is real need -- affordability is such a huge issue these days politically. And there's a real need if you're an elected official to show that you are doing things that support affordability.

And while housing, grocery certainly are key, I think oftentimes, transportation is underestimated how much that contributes and drives affordability for folks. And so as that becomes a bigger and bigger political issue across the country, certainly at the local level, we're seeing transportation elevated, the conversation about transportation elevated and the understanding that we need to put money into affordable means of transportation growing. And of course, that's a very big positive for us.

Operator: Your next question comes from the line of Brad Zelnick with Deutsche Bank.

Brad Zelnick: It's great to hear the update on student transportation. Can you expand more on the incremental TAM that you see here, the pipeline and anatomy of these deals? And just maybe how the funding of these initiatives compares and contrasts with securing funds for transit modernization.

Daniel Ramot: Brad, thanks for the question. I'll try to go through this in order. On the TAM side, we believe the schools opportunity is very large. From a -- in the U.S. from a sort of asset class, if you look at the number of buses, there are more school buses than any other kind of bus across the U.S. combined. So this from an opportunity size, we feel this is a very large opportunity. Now within this opportunity, we're particularly focused at the moment on a particular specific kind of transportation, which is the sort of specialized transportation, serving students for whom your traditional yellow school bus that you imagine is not very effective and serve them pretty poorly.

And that turns out to be a very large opportunity and also quite accretive, as Clara mentioned, to our business. As far as the pipeline, the pipeline looks very strong. We're pretty excited about where this is going. There's a strong -- this requires very, very high level of execution. Certainly, when you think about the population that we're transporting, these are very important populations to handle extremely well. And so the level of execution that's required is really high, but we believe we're in a good position to provide excellent service here and grow that part of the business.

Operator: Your next question comes from the line of Brian Peterson with Raymond James.

Brian Peterson: So, Clara, the RPO number was up a decent amount sequentially. I'd love to maybe understand from your perspective, how good of a leading indicator is that number? Any significant drivers in the quarter to call out that drove the sequential increase?

Clara Fain: Brian, thanks for the question. We -- the RPO number is obviously an important number. But for Via, it does not fully track the business as most of our contracts get federal funding and then they include a termination for convenience close that in practice is never utilized, but it makes them not includable into this metric. So the metric as a whole is trending in the right direction. I agree with you, but it does not reflect the entirety of our book. It's actually a small subset of our book.

However, I will say that we are seeing, obviously, a significant increase in pipeline and had very strong execution from the sales team last quarter, which is giving us very, very high confidence into this year, as you can see in the guide and the acceleration of the growth.

Brian Peterson: And maybe just a follow-up. I know it's been a couple of quarters since Downtowner, but anything you guys would call out in terms of synergies and the ability to cross-sell there?

Clara Fain: Yes, that's fully integrated into all the numbers and the operations that we have. We're super excited and pleased with that. We're continuing to kind of look at M&A very selectively and continue to be very disciplined. But overall, super pleased with that acquisition and continue to look at the market there.

Operator: Your next question comes from the line of Scott Berg with Needham & Company.

Scott Berg: I guess I got a couple, one more on the sales pipeline. It's a pretty big number. We're all interested. As you look at the pipeline today, does the mix of deals between new customers and expansions differ maybe from what you've seen over the last 6, 12 or 18 months?

Clara Fain: Thanks, Scott. That's a really good question. Historically, the growth has been driven -- 1/3 of the growth has come from new customers and 2/3 of the growth has come from expansion with existing customers. We're continuing to see a pretty similar pattern in the pipeline with maybe a slightly higher weight for new customers. So as we continue to land new logos, we are seeing the flywheel impact of our results and the referenceability of the platform, and that's kind of attracting new customers to the pipeline.

Scott Berg: Helpful. And then on the AI Labs side, a question that I fielded a couple of times this last quarter since you've announced that product is with all the use cases that you're looking at for your customers for your technology to potentially leverage and work with, how many of those projects are relatively repeatable or the use cases or the applications that you're helping develop? I think there's some questions on long-term margins on that? Is it customizable software? Is it something more off the shelf that can drive right gross margins for the model over a period of time?

Just curious to know what you're seeing for opportunities there in the short time frame that you've had the offering out there.

Daniel Ramot: Yes. Scott, thanks. What we're seeing at the moment, again, it's a bit early, but what we're seeing is extremely exciting in the sense that we find -- there's a broad range of application. We can deliver them pretty quickly and efficiently. And then once delivered, especially the way we're building them, we're trying to create a real platform that's agentic -- and you can take that one application and the platform and deploy it to another city very quickly and have it really pick up the sort of the operating environment, the requirements of that city very quickly, we believe.

So that initial indications on that area of how quickly you can scale that across cities once you build a specific application feel very good.

Operator: Your next question comes from the line of Jonathan Ho with William Blair.

Jonathan Ho: Congratulations on the strong results. One thing I wanted to better understand is how should we think about the average ARR uplift sort of provided by network solutions relative to some of these more piecemeal type deals? And does this maybe put you into competition with a different group of type of vendor out there?

Clara Fain: Jonathan, yes, I think what we're seeing, and you can see it in the revenue per customer, the revenue per customer is trending up. And in our pipeline, those the large whole network opportunities are definitely quite large. As we disclosed last quarter, we had four for about $40 million. So that was on average $10 million each. I would say that they will -- they tend to be over $1 million, over multimillion, so they tend to drive up the revenue per customer. From a -- so that's a fair observation. And as we continue to execute, we hope to get to an average of $1 million per customer, which was an internal target that we're focused on.

On the competitive landscape, nothing has changed compared to what we shared before. There's three types of competitors. We have some kind of new, I would say, innovative and tech-forward companies. We have some legacy software companies that have a lot of market share. And then we have the transit operators. And together, they provide this whole network opportunities that tend to partner with one another, and we tend to disrupt them altogether.

Jonathan Ho: That makes a ton of sense. And just from a high-level perspective, Daniel, I think in your prepared remarks, you referenced the fact that there was some more pressure on transit agency budgets, and that's causing them to actually look for more efficient solutions. Can you talk a little bit more about this sort of pressure dynamic? And does it end up being a double-edged sword if it pressures sort of existing projects as well? Just want to get some more clarity around how to think about that.

Daniel Ramot: Thanks, Jon, for that. I think that's a really important point. Thank you for asking that. The -- overall, from a budget perspective, if you look overall for public transit, there hasn't been much of a change versus historical patterns. We're still seeing budgets grow fairly slowly, low single-digit percent year-over-year on the whole. You have certain local dynamics where perhaps you're having more pressure in certain areas and actually faster growth in other areas. But on the whole, I think the picture is pretty consistent. What we are seeing, though, and I tried to touch on it in the prepared remarks, is that there is just a lot more focus on what are these systems delivering?

Where is the taxpayer money going to? Is it having the positive impact with the right level of efficiency that folks expect. You are seeing populations aging, and that means that there's a lot more need for pair transit. These are expensive services. So that's creating pressure, reducing the available budget perhaps for the general public transportation services. And of course, what I mentioned earlier, which is just a real desire to address affordability that's pushing elected officials and trans agency officials to have to rethink in some cases, what they're providing. All of those combined to what I refer to as the real beginning of a public transit revolution that I think we're extremely well positioned to capitalize on.

We're really, I believe, in the right place at the right time to help solve this problem where the budgets are available, but there's a really strong focus and pressure on making sure they're used effectively and efficiently and that there are metrics and their tracks and there's accountability. And really, I think we are uniquely positioned to tackle that.

Operator: Your next question comes from the line of Alex Zukin with Wolfe Research.

Aleksandr Zukin: Sorry, I apologize if this question was asked I jumped on a little late. But maybe can you guys talk about -- was there anything that pushed any deals? Like I think the pipeline commentary is fantastic, but anything about linearity in the quarter relative to previous periods? And then I've got a quick follow-up for Clara.

Clara Fain: This quarter was exactly as we previewed last quarter, Alex, very strong, continue to see really strong growth in the U.S. It's 35% year-over-year in the U.K. and the rest of Europe is also doing extremely well. So nothing new there. And we are -- you can see we're kind of raising the guidance for the year as follows, considering the pipeline that we're seeing and the consistent execution.

Aleksandr Zukin: Perfect. And Clara, obviously, really nice to see gross profit dollar acceleration, better gross margins this quarter. Maybe help us on the shape of that for the second half of the year. Was there anything onetime in nature from a mix perspective that drove that? And anything that we should bear in mind for the second half?

Clara Fain: Yes. Thanks. Great question. Listen, overall, we're very pleased with the progress on gross margin. It's a step in the right direction and the progress on profitability overall this quarter, which is very strong from our perspective. On the gross margin side, it was driven by a more favorable revenue mix with slightly higher onetime revenue, as you mentioned. We expect that to revert to a slightly lower level next quarter. But overall, we feel kind of committed to our -- to expanding our gross margin. And as a whole, I think this was a positive news this quarter.

Operator: Your final question comes from the line of Patrick Walravens with Citizens.

Kincaid LaCorte: Great. This is Kincaid on for Pat. Daniel, Clara congratulations on four quarters public at this point. I just wanted to ask, how has being public changed the business and how you operate? And what opportunities has it brought or taken away?

Daniel Ramot: First of all, it's been really fun, I want to say. I think the -- as we expected and preview to the IPO, and I think that's played out really nicely, being public has given us a certain -- in the market that we operate, it's turned out to be important. It's given us a level of credibility that I think is helpful overall when we're trying to sell to our kind of customer that's quite risk averse, wants to know that they're buying from a company that's going to be around for a long time, wants to understand the financial stability of that company.

And having that position as the public company that's coming in to sell to them, I think, has been very helpful, particularly as we've been going after these larger opportunities where we end up being potentially the sole vendor for them, providing the entire public transit network. They want to know that on the other side of that deal, they have a company they can really rely on. And we had this hypothesis coming in that it would help us, and I think it's playing out pretty nicely.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.