Good morning, everyone, welcome to the Route1 first quarter 2026 shareholder update conference call and webcast. At this time, all participants are on a listen-only mode. Shortly we will begin the formal presentation. As a reminder, ladies and gentlemen, this call is being recorded today, Friday, May 15th, 2026. I would now like to turn the call over to Mr. Tony Busseri, Route1's President and Chief Executive Officer. Sir, please go ahead.
Thank you very much, and good morning, all. It's been a moment since we've done a shareholder call and webcast. I'm glad to be back with you. A lot has happened since our last call. Let's get right into it, if that's okay with you. Just before we go through legal notices, Q1 represented an important operational quarter for our company, as we continued executing against our long-term strategy of expanding recurring operational engagement, intelligence capabilities, and AI-assisted workflow support within the parking and mobility industries. The quarter was not about declaring victory, though. It was about continuing to build the operational and strategic foundation required to support scalable long-term growth.
Today I'm going to walk through the Q1 results, operational progress achieved during the quarter, the market developments management believes are increasingly important, and why we believe our position continues strengthening as the industry evolves. Let me read the pro forma legal notice. As described on this slide, accompanying slide, I'd like to inform listeners that this presentation contains statements that are not current or historically factual statements that may constitute forward-looking statements. These statements are based on certain factors and assumptions, including expected financial performance, business prospects, technological developments, and development activities and like matters. While Route1 considers these factors and assumptions to be reasonable, based on information currently available, they may prove to be incorrect. These statements involve risks and uncertainties, including but not limited to the risk factors described in reporting documents filed by the company.
Actual results could differ materially from those projected as a result of these risks and should not be relied upon as a prediction of future events. The company undertakes no obligations to update any forward-looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events, except as required by law. Estimates used in this presentation are from company sources. I also need to point out that on today's call, we use names that are either registered trademarks or trademarks of Route1 Inc. in the United States and/or Canada. Let's get into it. Q1 2026 represent what management views, what I view, as a transition quarter.
Financially, the company reported revenue growth of 15% year-over-year to approximately $ 2.6 million, materially improved operational pro-performance over Q1 2025, and positive operating cash flow during the quarter. Importantly, recurring technology lifecycle support revenue increased year-over-year, and run- rate recurring revenue reached approximately $1.35 million as at March 31, 2026. Operationally, the quarter reflected continued progress in several important areas: support plan expansion activities, expanding Route1 operational visibility discussions, and the launch of Mr. Parking in April of 2026. At the same time, we believe broader market signals continued strengthening during the quarter, particularly focused around governance, workflow visibility, accountability, and measurable operating performance. Management does not believe Q1 2026 just completed the company's transition. Management does believe, well, I believe Q1 demonstrated increasing alignment between our evolving strategy and the direction of the market.
Historically, much of the parking technology industry is focused on infrastructure deployment or transactions. Management believes the industry is increasingly evolving beyond deployment activity and toward life cycle engagement, operational intelligence, workflow orchestration, and recurring operational accountability. As a result, Route1 continues positioning itself beyond traditional installation-oriented engagements and towards recurring life cycle operational relationships. This includes, I'm repeating myself to some degree, workflow orchestration, life cycle operational engagement, AI-assisted support, and recurring scalability. Management believes operational ownership and intelligence layers may increasingly create long-term strategic value within the parking and mobility environment. One of the most important developments management observed during Q1 2026 was the continued shift towards operational accountability across the industry. This includes the State of Washington accountability developments, increasing governance and audibility requirements, greater focus on measurable enforcement performance, and growing workflow visibility expectations.
We believe operators increasingly require transparency, workflow traceability, measurable operational outcomes, life cycle support, and AI-assisted workflows. Importantly, management believes the market opportunity is increasingly evolving beyond simply deploying infrastructure and toward helping operators manage, measure, and optimize operational performance. Route1 ABI was developed to help operators convert operational activity into measurable workflow visibility and actionable operating intelligence. Management believes operators increasingly require the ability to identify gaps, analyze performance, improve decision- making, and generate measurable workflow visibility. Operational intelligence increasingly depends on the ability to translate operational data into visibility, workflow intelligence, operational decisions, and ultimately measurable operational outcomes. We believe the operational intelligence layer may become increasingly important as accountability and workflow requirements continue evolving. Management believes customer relationships are increasingly extending beyond deployment activity and towards recurring lifecycle engagement. The company's strategy increasingly centers around support plans, Route1 ABI, Mr. Parking, and recurring operational engagement.
We believe customers increasingly value operational responsiveness, workflow visibility, lifecycle accountability, and measurable operational performance. As a result, we believe opportunities continue expanding around recurring revenue, operational modernization, workflow intelligence, and long-term customer retention. We also continue focusing on regional operational density. One example is in the s tate of Washington. Route1 continues supporting municipal support plan activity there, operational visibility discussions, municipal expansion activity, and broader regional engagement opportunities. We believe regional operational density creates several advantages: stronger operational responsiveness, greater field leverage, strong reference accounting position, and expanded recurring operational engagement opportunities. Internally, we call this initiative our hub and spoke model. Basically taking success in one strong center point and working off of that. This continues supporting the company's cradle-to-grave operational model. We believe the industry increasingly values operational ownership and measurable operational execution.
Historically, many deployments were transaction-focused, installation-oriented, and very limited on long-term lifecycle engagement. We believe our current positioning, and the one that we'll continue to grow into revolves around cradle-to-grave support, operational accountability, workflow visibility, lifecycle engagement, and operational intelligence. This is an important strategic distinction for the company moving forward, particularly when considering where competition is focused. Management believes industry business models continue evolving towards recurring revenue, platform ecosystems, workflow orchestration, lifecycle operational engagement, and intelligence-driven assumptions, operations. Assumptions and operations. Management believes Route1 support plan strategy, Route1 ABI platform, and Mr. Parking initiative continue aligning with these broader industry deployments. Let's turn back to financial performance for a second. Q1 reflected improved operating performance, positive operating cash flow, continued recurring engagement growth, and improving operational leverage.
While the company continues operating within a transition period, management, we believe operational discipline and recurring engagement trends continued strengthening during the quarter. Recurring revenue remains an important focus area for our company. As at March 31, 2026, recurring revenue reached approximately $1.35 million . We believe recurring engagement opportunities continue expanding through support plan modernization, operational visibility initiatives, lifecycle operational engagement, and Route1 ABI import opportunities. Now, I know you want me to say what $1.35 million will move towards, but it should be a significant growth number by the end of this current calendar year. We believe customer relationships increasingly extend beyond deployment activity and towards recurring operational engagement. During Q1 and early Q2, the company continued participating in a growing number of discussions involving enterprise mobility, autonomous enforcement. Autonomous enforcement, I stress that.
Operational visibility, workflow accountability, and lifecycle operational engagement. Management believes these discussions continue reflecting increasing market interest in, one, operational intelligence, two, workflow visibility, and three, measurable operational outcomes. I've said these three things not less than four times in today's presentation. Mr. Parking represents an important long-term initiative for our company. Management believes AI-assisted workflow orchestration and operational support may become increasingly important within the parking and mobility space. Importantly, Route1 believes it may possess several advantages in this area, including proprietary operational parking data, real-world operational environments, Route1 ABI integration, and again, ABI stands for Actionable Business Intelligence, lifecycle customer relationships, and continuous operational learning opportunities. Management believes the operational learning loop shown here may become increasingly valuable over time as additional operational data is processed and analyzed. The company also continued advancing its AI infrastructure and intellectual property strategy during the quarter.
Current development activity includes workflow orchestration, Route1 ABI expansion, retrieval-augmented generation or RAG integration, operational optimization, and AI-assisted operational support. The company also filed two AI-related patent applications involving workflow intelligence and operational automation technologies. Management believes operational workflow ownership and AI-assisted orchestration may create meaningful long-term strategic value. We believe this slide is important. I'm on page 16. Q1 did not yet deliver scaled ABI monetization, major enterprise conversion, full recurring revenue inflection, or full operating leverage, but the company is still in transition. We do believe Q1 did demonstrate, one , expanding recurring operational engagement, two, improved operating performance, three, positive operating cash flow, four, Route1 ABI positioning traction, five, AI and workflow commercialization progress, and six, increasing alignment between our strategy and the broader market development. We believe Route1 has not yet won, but we're on the path to victory.
Management also believes the direction of the market increasingly aligns with the direction of the company. Looking ahead, management remains focused on four primary operational areas: operational intelligence expansion, recurring revenue growth, AI-assisted operations, and scalable operational execution. This includes continued focus on commercial conversion, support plan expansion, workflow intelligence expansion, and operational execution. We remain focused on disciplined execution and scalable long-term operational growth. Thank you, everyone, for joining today's call and listening to this presentation. Operator, please open the line for questions.
Thank you. Ladies and gentlemen, at this time, we'll be conducting our question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue, and you may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's star one if you have any questions or comments. One moment, please, while we poll for questions. Okay, sir. As we have no questions on the lines at this time, I'd like to turn it back over to you for any closing comments.
Okay . Thank you for joining us on today's conference call. For any of you who may have joined the call while in progress, a replay will be available at toll-free 1-877-545-0523 and internationally at 973-528-0016. The pass code to use will be 910557 until 12:00 P.M. on Friday, May 29th, 2026. A copy of this live presentation is available on our website. We look forward to speaking with you soon.
Thank you. Ladies and gentlemen, this does conclude today's call. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation.