Thank you. I was just saying we're competing with lunch, which is great, but I'm glad you brought your food with you. My name is Joseph Nakhla. Good afternoon. I'm the Founder and CEO of Tribe Property Technologies. We are a tech-backed services company that really focuses on residential property management. It's probably an industry that you never thought you'd contemplate listening to a presenter on. Quick just positioning of our company. We've been around for a few years. In 2018, we had no assets under management. As of today, we're up to $41.042 billion of assets under management here in Canada. Despite what you hear about Canada, we're growing quite a bit, and we've got a significant industry in both technology and real estate. We have about 200+ employees.
We manage almost 55,000 homes, and we'll do approximately $30 million- $33 million of revenue this year, and we are EBITDA positive. Before we get into the riveting conversation about property management, let me explain to you a little bit more about how it all works. Residential living, people that live in those big buildings, they tend to live in what we call HOAs, or actually the U.S. calls HOA, Canada calls condo corporations. This is a big tower that a lot of people buy condos in and they move into. In addition to that, we have rental buildings. This would be a think of a large pension fund or a family office that owns a multitude of apartment buildings. We manage those for them as well. In addition to that, we have on our platform what we call a marketplace.
Once people live in these communities, we manage these communities. We actually put our technology stack in there, and we actually sell them products and services. Tribe is an alternative to a traditional property management. If you've ever had a bad experience with property management through your HOA and/or somebody that rented you a unit somewhere, our goal and our existence is to really replace that with a much better experience with technology stack and actually compete, if not replace, compete with or replace those traditional property managers that you're familiar with. Property management and residential living consist of a number of categories. You probably just might be thinking of traditional townhouse or a normal association in a multifamily, but there's also what we call the multifamily rental I mentioned earlier, single unit. There's actually commercial real estate and non-for-profit.
I'm just going to take you and kind of explain to you something really interesting. Depending where you are, it could be east, west, north, or south. What you really end up with nowadays is more and more people are living in these types of communities. Developers are accumulating land. They go to the city and they say, "We want to build three or four big towers," and the city will say, "Okay, we'll give you the density you're asking for, but we need you to also build maybe one or two rental buildings to help with the housing shortage that we're experiencing." You might need to do some commercial, maybe even introduce one or two opportunities for us to bring in some offices and maybe go ahead and build a community center in this kind of 30 or 40-acre property.
Tribe will come in and we'll digitize the whole thing. We'll manage all the rentals, we'll manage all the condos, manage all the commercial, and have a full platform that actually connects it all together. Right now, as I mentioned earlier, we manage about 55,000+ of those types of homes. How we do it with technology, we do it with what we call Tribe Home Pro. We have a full technology platform for people that are building these brand new communities. It's the most used platform in Canada right now. It collected almost $2.5 million deficiencies. What's a deficiency?
If you ever bought a brand new condo, probably less and less people have experienced that, but if you ever bought it, you have to do a walkthrough, make sure your condo is completely up to snuff, you're walking around, identifying all the issues with it, and there's all kinds of warranties that you get on your condo. Our platform actually accumulates all of that. When people move into the building, our platform turns into what we call Tribe Home, whereby you can book your amenities, you can connect with your neighbors, you can make payments, you can vote, which is a thing, get your proxies, receive all your notifications on the platform. We also have an AI platform that runs out and benchmarks the performance of the building, which is a fancy way of saying identifying in your building what could be out of whack.
Compared to your peers, we're realizing that your building and spending too much per square foot on gas. Why is that? I'm going to identify that. It's a practically impossible thing to do if you don't have the stack of data that we have. For any of you that lives in an HOA, you probably don't really know how well you're doing compared to HOAs similar to yours in the neighborhood or even external. That's kind of the function that we've illustrated there. We know a significant amount of information about the home, who lives in it, we have a payment relationship. We also have a significant data stack about the profile of the people that live there, which allows us to put products and services in front of them.
20% of our company's revenue comes from selling products and services to the homeowners, to the condo corporation, in this case HOAs, or the landlord, just because we can see what they really need in terms of products and services that we can fulfill for them. Our technology, I won't bore you too much with it, but it is very much encompassing because you have to be able to adhere to all the different stakeholders. We've got obviously the developers building the brand new community. You've got the councils and boards or associations. You have the property managers that actually work for us using our technology. We have owners and we have tenants and landlords. It's a broad perspective of what everybody needs to get out of that technology stack.
I'm proud to say that we are the only technology stack in the globe that actually does single unit, rental units, and condo corporations and HOAs under one platform. Some examples of communities that we manage on the Canadian soil, some brands may not be familiar for you here. If you're curious to know, at what point does Tribe come into the U.S.? We are looking at some acquisitions in the U.S. market. The way we grow is twofold. We grow organically and we grow through acquisitions. The organic is straightforward. We sell our products and services to these associations and other communities that need it. The way we sell or grow non-organically is we acquire traditional property management companies, convert into our service delivery model, improve the gross margin, and keep rolling them up.
Speaking of what that looks like, on the left-hand side is a traditional property management company managing an HOA. You'll see it runs at approximately $20± per home, additional $2 per transaction, runs at about 30%- 35% gross margin. With our platform completely into the system onboarded, you'll see on the right-hand side, you'll see there, this is our last quarter results. This is monthly recurring revenue. We did $38- $35 per door in terms of revenue, $10 additional transactions. This is us selling products and services in our marketplace. We run at about 44% gross margin. The idea there, and I want to make sure that point is pretty clear for everybody, think if you lived in a homeowner association, think of the monthly fees that you're paying every month, whatever.
If you live in a condo, it could be $0.55, $0.60 per square foot, unless you live in a very swanky downtown Manhattan where you may be paying $1,000 or $1 per square foot as an example. That money we collect on behalf of the building. We actually streamline the payments going and all the projects that are needed for the building. What we do is we also pay ourselves from that. That is the number that you're looking at on the top, the $38, $35. We pay ourselves per door approximately that. That was the average. The marketplace that resides on top of the platform where we sell insurance products and things like financial services into the communities is that other average number of approximately $11 per transaction per unit per month. Why would a building come to us if we end up charging more?
Simply put, the buildings we manage are healthier and they spent less money per square foot on a long list of categories. The buildings we manage, even though we pay ourselves more, for example, spent less on energy per square foot. You'll see, and by the way, what you're looking at is third-party data. It's not our data. It's the buildings we manage in yellow and their peers in black and the population peers. You'll see insurance per square foot, simply because the buildings we manage tend to have less incidences with insurance cases. You'll see there's a 10% reduction on a premium. If your premium is $600,000, $700,000 a year, that's a significant saving. You'll see on the bottom right, admin cost, we have a 150% reduction of your admin cost.
I can tell you buildings that we manage have less security in them, less concierge expenses because we have a lot more tools where you can actually communicate. You'll see on the top right-hand side, we manage approximately close to half a billion dollars of annual spend on behalf of these buildings. We go to the banks, we negotiate to make that money work for those buildings that we're there. We clip on that, plus we share revenue with them. You'll see there the significant increase that we generate per square foot for the buildings that we manage. I mentioned earlier, we make money two different ways. One is the traditional monthly recurring revenue, MRR, and that's about 80% of our revenue. Our last quarter was about $6.6 million. In transactional revenue, which is us selling products and services, I can go on, is literally 100 items.
It could be as basic as we've done a deal with a great laundry service delivery company that you can actually leverage to come once a week for the building and pick it up and go away. It could be as sophisticated as an insurance underwriter or a submetering product for the building so that we can submeter the water so we don't have those abusing tenants or abusing homeowners of the water consumption. We've been building a national footprint. We're currently, as we speak, even though we just started in 2018, the third largest property management company in Canada in the condo side. We're the second largest property management company in Canada on the rental side. You will see here our journey in terms of building on the right-hand side, building the infrastructure.
This is when we did not make, we had a lot of burn from an EBITDA point of view. You'll see our revenue trajectory. We've just turned this year into an EBITDA positive company. We're quite proud of that. It's basically backfilling into the size that we've built in Canada. This is our most recent numbers for Q2 2025. You'll see the significant improvement of almost 100% year-over-year improvement in adjusted EBITDA and approximately 30% year-over-year revenue. Our model on the acquisition side is straightforward. There are 1,500+ small, ma and pa property management companies. We buy them. We usually buy them between five to six times EBITDA before normalization. We acquire them, we put our technology in there, we start seeing the efficiency opportunities, turn that into three and a half, four times EBITDA once we acquire them.
We rebrand them and we call it, we take them from defense to offense. We take a small property management group that's managing 20, 30, 50, 100 buildings somewhere. We buy them. They're kind of flatlined usually. We come in, we put our technology, we rebrand them, and obviously make them more efficient, plus we push them to start winning more business. We've done that in every market we've ever gone into. Obviously, the model is virtuous that way. Once you digitize them, you have access to more revenue streams. You start making more dollars per square foot and more dollars per door from the customers. You optimize it, and then you introduce new services. You make more money. You reinvest that money in another acquisition. We've done approximately 15 transactions to date. We buy companies for different reasons, sometimes geography expansion, sometimes the type of product that they're managing.
We will continue to be doing that. We have never had a year without acquisitions. I think the least active year we've ever done is two acquisitions a year. Really, you know, most people don't wake up thinking of property management as an exciting thing, but I will tell you this. We are essentially tariff-proof, recession-proof, certainly pandemic-proof. If anything, we grew quite a bit around the pandemic, not that I want to revisit those days. Certainly, we continue to show that there's a lot more revenue to be generated from there. The idea that we're all forever going to be living in single-family homes is not likely. More and more density is coming. That is why we believe that the future for us is really exciting because everybody now has to learn to live within those association models or the condo corporation model.
You don't need to go very far. Go to even downtown LA, look at the change in landscape just outside of the island here. The overwhelming majority of those towers, by the way, in case you're ever curious, are Canadian companies that have built those towers. These are all those condo developments that are occurring in LA, downtown, San Francisco, downtown, and even here are actually Canadian companies. A lot of Canadian companies are coming in to do these massive developments, and we're really well equipped to go out there and support them. We think AI can play a big role into that. Of course, you know, you have to get your bingo card out and recognize somebody mentioned AI, but just let it sink in. I won't bore you too much with how AI can be a big player, but think about it.
You've got hundreds and hundreds of people that live in a community, have a lot of questions about a bunch of, you know, bylaws, laws, regulations. It's really well positioned for AI to go out there and actually get you answers. That's the most basic version of it. Also, think about it. You live in a 30-year-old building. You want to change a hardwood flooring, and you don't know what it takes for you to get that done. You ask our AI, what do I need to do to change the flooring in my building? It automatically goes out and initiates all the workflows associated with getting approval, getting the noise reduction, communicating around your neighbors to let them know that this is going to come, making sure that the vendor that you find is certified and has enough insurance to be able to work in the building.
I can go on and bore you, but the point is, it's really well designed for complex workflows, and there's nothing more complex, arguably, in real estate than the way we manage these communities. We obviously have a big cost reduction play. We've been able to reduce our costs. Probably the best way to think about us is because of our technology, which we developed in-house, and we eat our own dog food, we're able to manage more with less people. This idea that, you know, one day we're going to wake up, all the buildings are going to be managed 100% without humans, it's not going to happen. It's not going to happen in our lifetime. What you could do is instead of having one person managing one building, you look at our ratio. We currently manage, one person manages 10 buildings.
That ratio is going to continue to improve, especially with the use of things like AI and other technologies. This is our cap table. We have about 50% of the company inflowed. We're trading at about $18 million market cap. Yes, it is $18 million, even though we're going to do $34 million- $35 million of revenue this year. This is really where the opportunity is. We're here to tell the story about we think we built a great company, completely undervalued. What's a company like us should be trading at? Forget about drinking Kool-Aid. Really, we should be trading four to five times revenue, especially that we're EBITDA positive. I will continue to go down that path, and eventually the story will resonate. Very solid strategics that own our stock. Myself and my CFO own about 10% of the business. It's tightly held.
It still doesn't do a lot of volume, but that's changing as we speak. We're starting to see a lot of changes, and obviously that's an opportunity. The last three or four transactions that we did on the fundraising side, I personally and our IR team and our board participated. We're very active, and we believe in the company quite a bit. This is a quick snapshot of who we are. It's myself, our CFO, our Corporate Secretary, and our Vice President of Marketing and Communication. Will can email you this if anybody's interested, in case you want to have it, but really an esteemed and fantastic board with a lot of exits behind them, giving us a lot of guidance of where we're going next. Why us? This is really what we've said we were going to do this year.
We said we're going to increase our organic growth and execute on our M&A strategy and continue to innovate. I'm pleased to say we did make a couple of large acquisitions this year. We executed on our organic growth. We continue to win business right across both coasts in Canada, and we continue to innovate by bringing more products and services. If you go look at our ticker and see all the press releases we put about some new products and new technologies that we've added to our communities that improve our gross margin, you'll see a significant amount of those out there. Why us? We're disrupting a very old school industry. This is $120 billion of annual spend in Canada and the U.S. on just HOA management. This is not how much money is being spent inside the home. This is just to manage the community itself.
We're obviously one of Canada's largest property management companies, and we have a big aspiration to come to the U.S. through acquisitions and keep an eye on that. Aggressive M&A strategy, 15 transactions to date. Very, very defensive business. We have very low churn. Nobody wants to wake up in the morning and migrate to get all their data out of our platform, get all the benefits and the history that they got on our platform, and leave us. It gives a really defensive position. Very diverse revenue. Like I said earlier, we have about 100+ revenue streams that come from these communities. I like to think we have a very strong group that's managing the company. Right on time with 46 seconds to spare for questions. I'll pause here and see if there's anybody that has any questions about our space yet.
What's the market missing here?
I've answered that question half a dozen times this morning, so I appreciate you asking it. I'll give you the honest truth serum answer. When we went public, there was a significant number of enterprise tech venture companies that were doing roll-up strategies. None were doing it in our space, but they were just doing roll-up strategies. We kind of got painted by the same picture. A lot of them blew up, frankly, because they bought wrong, and the thesis was never sound. We told the market and the street that we were going to do, and you can go back and watch my videos, exactly what we did, which is we're going to invest, we're going to raise money, we're going to invest to build national infrastructure. You need it. You can't do what we do without national infrastructure. That was the investment that we needed.
I actually always signaled that 2025 was going to be the year we're going to be EBITDA positive. We hit it in Q4 last year. I always said 2026, we're going to spit out cash, which we will do. We really executed on it. Now we're just reminding the street and the market and getting more eyeballs on it that we said we were going to do this. We did this. We're standing in a very healthy position. Those of you that are not familiar with Canada, we only have five banks. We actually have a banking relationship with one of those banks that actually allows a revolver to do M&A transactions. If you looked at our last quarter balance sheet, you'll see we have $15 million of debt. As of today, it's closer to $9.5 million. We've actually retired almost $4 million of debt in the last 18 months.
I share that with you not to impress you, just to let you know we're doing all the right things and getting the business where it belongs. We think the stock will reflect that. Great question, though. Thank you. Any other questions? Yes?
I mean, I know you're kind of U.S., but we're in Canada. Do you have the biggest pieces of the growth?
The most growth, I mean, in the last two years, we have half of our revenue now currently coming from Ontario. If you asked me that question two and a half years ago, this would be Toronto neighborhood, the GTA market we call, the Greater Toronto Area. Two years, two and a half, maybe three years ago, that was 10% of our revenue. Now it's almost 40% of our revenue, almost knock it on half. We'll continue to see growth. The market is so fragmented, and we are just scratching the surface, despite the fact that we're third largest. First and second place, which is First Service and Associate, still have very little of the market share. We're all just gaining it as we speak. Okay. Any more questions?
If you ever, ever, ever live in an HOA or a condo and you have a question that you just don't have an answer to, just reach out. We'll have somebody a lot smarter than me can give you an answer. We don't charge for these things, but just a good opportunity for you guys to wrap your mind around what you're allowed and not allowed to do. Thank you, guys.