Toppoint (TOPP) investor relations material

Executive summary

• Revenue increased 3% year-over-year to $16.5M, driven by growth in scrap metal and import freight, despite a decline in waste paper revenue and loads.

• Net loss of $7.3M in 2025, compared to net income of $175K in 2024, primarily due to higher costs and a one-time $5.4M stock-based compensation expense.

• Gross margin declined to 3% from 11% year-over-year, reflecting increased costs outpacing revenue growth.

• Expanded operations into Houston, TX and Ensenada, Mexico, and launched new services in refrigerated logistics and import drayage.

Financial highlights

• Revenue: $16.5M (up 3% YoY); Net loss: $(7.3)M (vs. $175K profit in 2024).

• Gross profit: $498K (down from $1.77M); Gross margin: 3% (down from 11%).

• Stock-based compensation: $5.36M (non-recurring, major driver of net loss).

• Cash at year-end: $1.2M; Working capital: $3.6M.

• Accounts receivable: $1.4M, with 91% collected post-year-end.

Outlook and guidance

• Management expects no large recurring stock-based compensation in 2026.

• Plans to improve liquidity, expand into new territories, and raise service prices.

• $2M in outstanding loan receivable expected to be collected in 2026 to support operations.

• May seek additional equity or debt financing if internal resources are insufficient.