Dear Fusemachines Shareholders,

After more than 25 years working in AI, from building the first Nepali speech synthesizer at Carnegie Mellon University, to developing summarization systems at Columbia University, to advancing research in low memory footprint machine translation and question answering at IBM Watson Research Center, and ultimately to building state-of-the-art AI systems at Fusemachines over the past 12 plus years, I can say with conviction that I have never been more excited about the future of AI than I am today.

We are at the beginning of a new era, one in which AI not only assists humans but increasingly takes action on their behalf. In just the past six months, the rise of agentic AI has made it possible to move from assistance to true automation of complex, multi-step work. This is not an incremental shift; it is a fundamental transformation in how work itself will be accomplished. Agentic AI is here, and it will reshape every enterprise by enabling systems that can plan, reason, and execute tasks autonomously, reducing operational friction, accelerating decision making, and unlocking entirely new levels of productivity.

At Fusemachines, we have been building toward this moment. By delivering agentic AI-driven products and services, we believe we are uniquely positioned to capture a significant growth opportunity ahead.

2025 was a challenging but defining year for our company. Navigating the NASDAQ listing process required focus and resilience, and we successfully achieved this important milestone. We ended 2025 with no debt and improved adjusted EBITDA 25% compared to the prior year due to cost containment initiatives and vendor optimization. With that behind us, we enter 2026 with renewed momentum, strengthened by capital to invest in growth and guided by a clear strategic direction. As shared in December, our strategy is centered on three pillars: organic growth, partnerships, and acquisitions. These pillars are tightly connected and designed to reinforce each other as we scale.

We are accelerating organic growth by opening new channels for lead generation, and adding experienced sales talent to improve execution and conversion across the funnel. At the same time, we are expanding our customer outreach through targeted events and new go-to-market initiatives designed to deepen engagement, increase brand visibility, and build a stronger, more qualified pipeline.

An increased pipeline is great, but how do we win against competitors? I believe one of the key reasons we have been winning customers is our approach of providing specialized, specific solutions with deep vertical expertise, where high accuracy yields strong ROI for customers. Many proof of concept implementations never make it to full deployment in enterprises because tolerance for noise and mistakes is very low, especially when enterprises are putting AI systems in front of their customers. For example, if a refund agent makes mistakes even one percent of the time, enterprises may stop full deployment across all customers. Our engines and agents deliver that last mile of high accuracy, which drives high ROI. This year, we are developing agentic AI offerings focused on intelligent, autonomous systems that assist with decision making, workflow automation, and enterprise productivity. By integrating these capabilities into our solutions and positioning, we aim to differentiate our value proposition, unlock new use cases for clients, and create additional growth avenues aligned with the evolving AI landscape.

Partnerships are also amplifying our reach and accelerating deal flow. We have already announced five new collaborations and continue to expand our ecosystem. A key highlight is our partnership with Amazon Web Services. Fusemachines is among a select group of a few hundred partners globally with this level of recognition in generative AI. AWS is actively supporting us with credits, financial resources, and go to market collaboration to help bring clients across the finish line, which we expect will materially accelerate our ability to close and scale enterprise deals. We have also expanded our collaborations with partners like Modulaire, which has deep ties to IBM and has already contributed meaningful market visibility and momentum. In addition, we have partnered with companies like TalentConnect, Global Teams, and Genese to integrate our software into their platforms or to resell our solutions in various geographies. We believe these and additional upcoming partnerships will add significant momentum to our growth.

At the same time, we are advancing our acquisition strategy with discipline. We are actively evaluating companies that align with our business model, technology, and culture, with the goal of accelerating capability and expanding market presence.

At the core of our future is the evolution of our AI Studio platform into a system designed for the agentic era. We are expanding AI Studio with capabilities that enable systems to plan, reason, and execute complex workflows across enterprise environments. These advancements move beyond traditional automation, allowing intelligent systems to operate with greater autonomy, adapt to dynamic conditions, and deliver measurable business outcomes.

We are already seeing this in practice with our Interview Agent, which demonstrates how agentic systems can streamline hiring by automating evaluation, coordination, and decision support. Today, our first round technical interviews are agent assisted. What once required teams, tools, and significant time can now be orchestrated through intelligent systems, redefining how organizations manage workflows, optimize operations, and make decisions at scale.

Importantly, we are not only building these capabilities for our customers but also adopting them internally. We have begun embedding agentic systems across our organization to augment productivity, streamline operations, and support decision making. From sales and marketing to engineering, customer success, and operations, we see a future where every department is supported by specialized agents handling distinct tasks and workflows. This internal adoption allows us to accelerate efficiency while continuously refining our platform based on real world usage.

From a strategic perspective, our approach is focused on delivering AI engines and agents that are tightly aligned with specific business pain points and workflows. Rather than offering generic solutions, we build targeted, high impact agents that address clearly defined use cases and drive tangible value. This enables us to meet customers where their needs are most acute while creating a scalable foundation for broader enterprise adoption.

We believe demand for agentic AI capabilities will accelerate rapidly, and integrating them into AI Studio will further fuel our growth. Looking ahead, we are confident that 2026 will be a strong year of growth for Fusemachines, driven by both disciplined execution and continued product innovation.

The shift to agentic AI will redefine how work gets done, how decisions are made, and how companies compete, and we intend to lead in that transformation. At the core of everything we do is a single belief: the future will be defined by fusing machines with humans responsibly.

Sincerely,

Sameer Maskey, PhD
Fusemachines Inc. (FUSE)

Caution Regarding Forward-Looking Statements

This presentations and related remarks contain “forward‑looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward‑looking statements include, among other things, statements regarding our strategy; plans and objectives of management; expected growth and market opportunities; our positioning for future periods, including 2026; anticipated product and technology development, including AI Studio and AI Engines; focused vertical expansion in retail and real estate sales and marketing initiatives; partnerships, reseller and systems integrator relationships; potential acquisitions and integration opportunities; operational milestones; customer adoption and anticipated enterprise ROI; responsible AI governance initiatives; and other future events or performance. Words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “seek,” “should,” “target,” “will,” “would,” and similar expressions are intended to identify forward‑looking statements.

Forward‑looking statements are based on our current expectations, estimates, assumptions and projections and are not guarantees of future performance. Actual results may differ materially from those expressed or implied by these forward‑looking statements due to a number of risks and uncertainties, including, among others: our ability to execute our growth strategy in our target verticals; the pace of enterprise adoption of AI solutions and our ability to demonstrate customer ROI; our ability to attract, develop and retain partners, resellers and talent and to scale our sales and delivery organizations; our ability to develop, commercialize and enhance our AI platform and engines in a timely manner; competition and the evolving regulatory landscape for AI and data privacy; our ability to identify, complete and integrate acquisitions and to realize expected synergies; macroeconomic, geopolitical and industry conditions; our reliance on third‑party platforms, data, and infrastructure; cybersecurity, data protection and intellectual property risks; our ability to access and deploy capital efficiently; and the other risks and uncertainties set forth in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10‑K, Quarterly Reports on Form 10‑Q, and subsequent filings.

You are cautioned not to place undue reliance on these forward‑looking statements. Any forward‑looking statement speaks only as of the date it is made, and we undertake no obligation to update any forward‑looking statements to reflect events or circumstances after the date of this presentation, except as required by law.