Amid all the excitement building around the possibilities of enterprise AI this year, there has been one high-profile flameout in the stock market: C3.ai ( AI ), once considered a meaningful generative AI platform thatWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking A ...

Core Insights - C3.ai has experienced a significant decline in the stock market, despite the growing excitement around enterprise AI this year [1] Company Analysis - C3.ai was once viewed as a significant player in the generative AI platform space, indicating its potential in the technology sector [1] - The company has faced challenges that have led to its high-profile flameout, suggesting underlying issues that may affect its future performance [1] Industry Context - The excitement surrounding enterprise AI has been a major theme in the technology industry, highlighting the potential for growth and innovation [1] - The experience of analysts and contributors in the technology sector, including those with backgrounds in Wall Street and Silicon Valley, reflects the evolving landscape of AI and its impact on investment opportunities [1]

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Core Insights - C3.ai reported better-than-expected Q2 FY2026 results, driven by a significant rebound in federal government demand and increased partner-driven transactions [1] - Despite the positive performance, concerns about ongoing revenue pressures and operational challenges led to stock price volatility post-earnings [1] Financial Performance - Adjusted loss per share was $0.25, better than the analyst expectation of a loss of $0.33; revenue reached $75.1 million, slightly above the market expectation of $74.93 million, with a 7% quarter-over-quarter increase but a 20% year-over-year decline [1] - Subscription revenue, which constitutes 93% of total revenue, fell 13% year-over-year to $70.2 million, indicating challenges in stabilizing core business [1] - GAAP gross margin was 40%, while Non-GAAP gross margin reached 54%; cash and securities balance stood at $675 million at the end of the quarter [1] Federal Business and Partnerships - C3.ai's federal business saw a remarkable 89% year-over-year increase in order volume, accounting for 45% of total orders, despite disruptions from government shutdowns [2] - New contracts or expanded agreements were signed with various federal agencies, including the Department of Health and Human Services and the U.S. Army [2] - Partner-driven sales strategies, particularly collaborations with Microsoft and Amazon AWS, significantly expanded sales channels, with growth rates of 146% and 172% respectively [2] Order Growth and Future Outlook - Overall order volume increased by 49% quarter-over-quarter, with 17 transactions exceeding $1 million and 6 transactions over $5 million [3] - Despite innovative strategies, financial challenges remain, with no clear signs of reversing the subscription revenue decline; the company emphasized the need for improved operational efficiency in new contracts [3] - For FY2026, C3.ai expects revenue between $289.5 million and $309.5 million, with analyst expectations averaging $299.5 million; guidance for the current quarter is set at $72 million to $80 million, compared to market expectations of $75.6 million [3] - The CEO stated that clear operational goals have been set for each business unit, with a defined path to return to growth and achieve positive cash flow and Non-GAAP profitability [3]

Core Insights - C3.ai reported a quarterly loss of $0.25 per share, better than the Zacks Consensus Estimate of a loss of $0.32, representing an earnings surprise of +21.88% [1] - The company generated revenues of $75.15 million for the quarter ended October 2025, slightly surpassing the Zacks Consensus Estimate by 0.04%, but down from $94.34 million year-over-year [2] - C3.ai shares have declined approximately 58.3% year-to-date, contrasting with the S&P 500's gain of 16.1% [3] Financial Performance - Over the last four quarters, C3.ai has exceeded consensus EPS estimates four times and topped consensus revenue estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.29 on revenues of $75.95 million, and for the current fiscal year, it is -$1.33 on revenues of $299.06 million [7] Industry Context - The Computers - IT Services industry, to which C3.ai belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact C3.ai's stock performance [5][6]

Financial Data and Key Metrics Changes - Total revenue for Q2 was $75.1 million, a quarter-over-quarter increase of 7% [19] - Subscription revenue was $70.2 million, a quarter-over-quarter increase of 16.5%, representing 93% of total revenue [19] - Non-GAAP gross profit was $40.9 million, with a non-GAAP gross margin of 54% [21] - Non-GAAP operating loss for the quarter was $42.2 million, and non-GAAP net loss was $34.8 million, equating to $0.25 per share [21] - Free cash flow for the quarter was negative $46.9 million, with $675 million in cash and equivalents at quarter-end [22] Business Line Data and Key Metrics Changes - Bookings increased by 49% sequentially to $86 million, with significant traction in federal business [5][20] - Total bookings across federal, defense, and aerospace increased by 89% year over year, accounting for 45% of total bookings [6] - Professional services revenue was $4.9 million, representing 7% of total revenue [20] Market Data and Key Metrics Changes - The federal market is identified as a large growth vector, with agencies moving towards commercial off-the-shelf solutions [6] - The company signed new agreements with various federal agencies, including the U.S. Department of Health and Human Services and the U.S. Department of Defense [6][7] Company Strategy and Development Direction - The company aims to return to rapid growth and a path towards free cash flow positive and non-GAAP profitability [14] - Focus on driving sales execution and doubling down on products and industries where the company has demonstrable leadership [15] - The product roadmap includes innovations like C3.ai Agentic Process Automation, which expands the scope of what customers can accomplish [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges from a government shutdown but remains optimistic about the demand for enterprise AI [5][30] - The management team is focused on delivering economic value quickly to convert opportunities into agreements [27][36] - The company is benefiting from trends such as the push for AI adoption and the reindustrialization of the maritime industrial base [34] Other Important Information - The company has established a detailed financial model and operational objectives to facilitate growth [17][18] - The partner ecosystem is crucial, with 89% of bookings in Q2 closed through partnerships [10] Q&A Session Summary Question: Explanation for the decline in business performance - Management attributed the decline to poor sales execution and acknowledged that demand for enterprise AI is accelerating [26] Question: Clarification on revenue from demo licenses - The revenue of $21.9 million was from demo licenses [31] Question: Outlook for professional services revenue mix - Long-term expectations for professional services mix remain between 10%-20% of revenue [32] Question: Future outlook for federal business - The federal business is expected to be a durable growth engine, driven by government trends towards commercial solutions and AI adoption [33] Question: Initiatives for better growth and accountability - Management emphasized the importance of rigorous evaluation and delivery of value to drive growth [36]

Core Points - Atrium Mortgage Investment Corporation has declared a monthly dividend of $0.0775 per common share for December 2025, payable on January 13, 2026, to shareholders of record on December 31, 2025 [1] - The company currently pays monthly dividends at an annual rate of $0.93 per share, with a potential special dividend if declared dividends are less than taxable income for the fiscal year [2] - Atrium offers a Dividend Reinvestment Plan (DRIP) allowing shareholders to reinvest dividends in new shares at a 2% discount to market price, promoting investment growth over time [3] - Atrium is a non-bank lender specializing in residential and commercial mortgages in major urban centers in Canada, focusing on stable and liquid real estate markets [4] - As a Mortgage Investment Corporation (MIC), Atrium is not subject to corporate income tax if taxable income is distributed as dividends within 90 days after year-end, with dividends treated as interest income for shareholders [5]

Investor Supplemental FY26-Q2 December 3, 2025 Disclaimer This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "estimate," "expect," "intend," "may," "will" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, statem ...

C3 AAI CEO uh Stephen McCannian. Um Stephen, it's good to see you. So, how what's the status of getting the go to market motion fixed that really hit the stock earlier and how did that play out in the quarter.>> Yeah. Uh I would say it was a solid quarter um with a disciplined execution across sales and go to market. Uh what we really saw is acceleration our federal business. Uh we also saw uh key blue chip customers.Uh and uh we we saw the ability to go up market as well with some high volume high value uh ...