Core Insights - U.S. stocks experienced a rally in Q3, supported by the Federal Reserve's interest rate cut and steady economic data, with the Russell Midcap® Growth Index increasing by 2.78% [3][17] - The Wasatch U.S. Select Fund underperformed, declining by -1.93%, primarily due to concentrated holdings in stocks that faced slower revenue growth [3][4][17] Fund Performance Analysis - The Fund's performance was negatively impacted by a few concentrated stock holdings that reported slower revenue growth, leading to significant declines in their stock prices [4][6] - The investment strategy focuses on high-quality, long-duration growth companies, which faced headwinds as low-quality stocks gained favor in the market [7] Key Detractors - BellRing Brands, Inc. (BRBR) was the largest detractor, with concerns over competition in the protein shake category; however, the long-term outlook remains positive due to category growth potential [8] - Shift4 Payments, Inc. (FOUR) faced stock price declines despite solid organic revenue growth, attributed to macroeconomic concerns and investor sentiment following its acquisition of Global Blue [9] - Inspire Medical Systems, Inc. (INSP) was sold during the quarter after management downgraded guidance due to delays in product rollout, raising execution concerns [10] Top Contributors - Medpace Holdings, Inc. (MEDP) was the top contributor, with strong revenue and earnings growth, raising full-year guidance despite a slowdown in biotech funding [11] - Fabrinet (FN) benefited from strong product adoption, particularly in data centers linked to AI, although the investment is not solely based on AI themes [12] - Nova Ltd. (NVMI) also contributed positively, with a strong track record in semiconductor manufacturing, benefiting from increasing complexity in the industry [13] Future Outlook - The Fund remains committed to its investment philosophy, focusing on high-quality growth companies despite recent underperformance [14] - The fundamentals of the companies within the Fund are encouraging, with strong earnings growth expected to drive return potential over a three- to five-year horizon [15]

Core Insights - Quebec Innovative Materials Corp. (QIMC) has announced a winter drilling program in Nova Scotia, focusing on the West Advocate area, which has shown promising results in natural hydrogen exploration [1][2][3] Group 1: Drilling Program and Results - The winter drilling program will target areas in West Advocate, where hydrogen measurements have shown consistency across three field seasons, with surface readings reaching up to 4,300 ppm and subsurface samples exceeding 1,000 ppm [3][4] - Recent soil-gas sampling in West Advocate indicated hydrogen concentrations of 3,800 ppm and 4,300 ppm, confirming the clean, abiotic origin of the emissions with no detectable CO₂, methane, or sulfur gases [4] - The presence of a robust natural hydrogen system has been validated through strong correlations between radon, thoron, and hydrogen across multiple datasets [3][4] Group 2: Geological Context and Analysis - The radon survey along Eatonville Road indicates high radon concentrations exceeding 100,000 becquerels per cubic meter, suggesting the existence of advective transport systems deep enough for thoron to decay [5][7] - The structural complexity of the Cobequid Fault Zone, characterized by secondary fault systems, is believed to facilitate the upward transfer of radon and hydrogen [7][9] - Geophysical surveys will be conducted to accurately locate and characterize fault systems and correlate them with hydrogen and radon anomalies observed in soils [9][12] Group 3: Future Plans and Methodology - QIMC and the Institut National de la Recherche Scientifique (INRS) will advance into the third and fourth phases of their drilling program, integrating geological and geophysical models to guide drilling targets [10][12] - A large-scale gravimetric survey with 1,000 stations is underway, along with audiomagnetotelluric surveys to map deep geological structures [12][13] - The surveys aim to produce detailed imaging of fractured bedrock beneath hydrogen-rich soil zones, enhancing the understanding of the natural hydrogen system [12]

Core Insights - Nova (NASDAQ: NVMI) reported Q3 CY2025 results with revenue of $224.6 million, exceeding market expectations by 1.5% and showing a year-on-year growth of 25.5% [1][6] - The company provided optimistic guidance for Q4 CY2025, projecting revenue of $220 million, which is 2.4% above analysts' estimates [1][6] - Non-GAAP profit per share was $2.16, aligning with analysts' consensus [1][6] Revenue and Profit Performance - Revenue for Q3 CY2025 was $224.6 million, surpassing analyst estimates of $221.2 million [6] - Adjusted EPS was $2.16, in line with analyst expectations of $2.15 [6] - Adjusted EBITDA was $76.22 million, slightly below the expected $77.19 million, with a margin of 33.9% [6] Market and Demand Insights - The growth in revenue was attributed to strong demand in advanced nodes and packaging, particularly from memory devices like DRAM and high-bandwidth memory [3][5] - CEO Gabriel Waisman noted record service revenues and strong adoption of the ELIPSON and METRION platforms in materials metrology [3] - The company anticipates continued demand for advanced logic, packaging, and memory, driven by AI-related semiconductor manufacturing needs [4] Future Outlook - Management expects that large-scale AI investments will positively impact the semiconductor industry, creating unique process control challenges that Nova is prepared to address [4] - Advanced packaging and gate-all-around processes are projected to be key growth drivers into 2026 [4] Operational Metrics - Operating margin for the quarter was 28.4%, consistent with the same quarter last year [6] - Inventory Days Outstanding decreased to 171 from 180 in the previous quarter [6] - Market capitalization stands at $9.31 billion [6]

Financial Data and Key Metrics Changes - Nova achieved record quarterly revenue of $224.6 million in Q3 2025, reflecting a robust 25% year-over-year growth and a 2% quarter-over-quarter increase [3][10] - Blended gross margins were 57% on a GAAP basis and 59% on a non-GAAP basis, aligning with guidance [10][11] - Operating expenses increased to $63.5 million on a GAAP basis, with operating margin reaching 28% on a GAAP basis and 32% on a non-GAAP basis [11][12] - Earnings per share were $1.90 on a GAAP basis and $2.16 on a non-GAAP basis [12] - Free cash flow generated in Q3 was approximately $67 million, totaling about $170 million for the first three quarters of 2025 [12][13] Business Line Data and Key Metrics Changes - Revenue from memory devices reached record levels, driven by strong demand for advanced DRAM and high bandwidth memory [3][6] - Advanced logic revenue also saw records, primarily due to demand for gate all-around manufacturing processes [7] - Advanced packaging solutions experienced increased demand, particularly for critical dimension measurements [8][9] Market Data and Key Metrics Changes - The company expects wafer fab equipment (WFE) growth in the mid-single digits for 2026, with potential upside from AI-driven demand [5][18] - Revenue from China is expected to be nominally higher year-over-year, but its share of overall business is projected to decrease from 39% to around 30%+ [27][28] Company Strategy and Development Direction - Nova's strategy focuses on leveraging advanced technology to address challenges in AI applications and complex manufacturing processes [4][9] - The company is committed to expanding its footprint in the semiconductor process control market, with a focus on R&D investments and potential M&A opportunities [13][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform WFE growth, citing strong growth engines and a favorable market environment [18][36] - The outlook for 2026 is expected to be second-half weighted, with both memory and advanced logic driving growth [36][42] Other Important Information - Nova opened a new production facility in Mannheim, Germany, which will triple its production capacity for advanced packaging optical metrology solutions [9] - The company completed a $750 million convertible notes offering, enhancing its financial flexibility for strategic growth initiatives [13] Q&A Session Summary Question: Can you walk us through the upside case to the wafer fab equipment outlook? - Management believes they have the right growth engines to outperform the mid-single digit WFE growth, with expectations for a more second-half weighted year in 2026 [18] Question: Can you discuss the gross margins and any impact from China restrictions? - Gross margins were reported at 59%, with guidance for 58% in the next quarter, and no significant impact from China restrictions was noted [20][21] Question: What are the moving pieces in Foundry and Logic versus memory sales? - Memory sales increased significantly, with DRAM driving the majority of that business, while Foundry and Logic saw a decline [24] Question: What is the company's positioning in the NAND cycle? - NAND remains muted, but management expects growth towards the second half of next year, with a strong position in the market [38] Question: What is the expected contribution from advanced packaging for 2025? - Advanced packaging is expected to contribute approximately 20% of revenues in 2025, up from 15% the previous year [37]

Financial Data and Key Metrics Changes - Nova achieved record quarterly revenue of $224.6 million in Q3 2025, reflecting a robust 25% year-over-year growth and a 2% increase quarter-over-quarter [3][10] - Blended gross margins were 57% on a GAAP basis and 59% on a non-GAAP basis, aligning with guidance [10][11] - Operating expenses increased to $63.5 million on a GAAP basis, reflecting investments in R&D and strategic evaluations [11] - Earnings per share were $1.90 on a GAAP basis and $2.16 on a non-GAAP basis [12] - Free cash flow generated was approximately $67 million for the quarter, totaling around $170 million for the first three quarters of 2025 [12][13] Business Line Data and Key Metrics Changes - Product revenue distribution was approximately 70% from logic and foundry and 30% from memory, with memory sales driven by strong demand for advanced DRAM and high bandwidth memory [10][3] - Record sales in memory were achieved, with significant contributions from Veriflex and Prism platforms [6][7] - Advanced logic sales were also at record levels, primarily due to demand for gate all-around manufacturing processes [7] - Advanced packaging solutions saw increased demand, particularly for critical dimension measurements [8] Market Data and Key Metrics Changes - The company expects wafer fab equipment (WFE) growth in the mid-single digits for 2026, with potential upside from AI-driven demand [5][4] - Revenue from China is expected to be nominally higher year-over-year, but the share of overall business from China is projected to decrease from 39% to around 30% [27][28] Company Strategy and Development Direction - Nova's strategy focuses on addressing unique process control challenges in manufacturing integrated circuit devices for AI applications [4] - The company is well-positioned to support customers with differentiated, scalable, and innovative solutions as the industry evolves [9] - Nova is actively pursuing inorganic growth opportunities in the semiconductor area, particularly in process control [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform the WFE growth and highlighted the importance of memory and advanced logic in driving future growth [18][36] - The company anticipates continued growth in advanced packaging, with a projected increase in revenue share from 15% to approximately 20% in 2025 [37] - Management noted that the business in China has normalized and expects this trend to continue into 2026 [43] Other Important Information - Nova opened a new production facility in Mannheim, Germany, which will triple production capacity for advanced packaging optical metrology solutions [9] - The company completed a $750 million convertible notes offering, enhancing its financial position for strategic investments [13] Q&A Session Summary Question: Wafer fab equipment outlook for next year - Management believes they have the right growth engines to outperform the mid-single digit WFE outlook, with expectations for a more second-half weighted year in 2026 [18] Question: Gross margins and impact from China restrictions - Gross margins for the quarter were reported at 59%, with guidance for 58% in the next quarter, and no significant impact from China restrictions was noted [20][21] Question: Foundry and Logic sales performance - Memory sales increased significantly, while Foundry and Logic saw a decline; however, leading-edge foundry sales hit a record [24][25] Question: Gate all-around business trajectory - The gate all-around business is expected to continue growing, with an aggregated business expectation of about $500 million from 2024 to 2026 [30][31] Question: Advanced packaging revenue contribution - Advanced packaging is expected to contribute approximately 20% of revenues in 2025, with continued growth anticipated in 2026 [37] Question: NAND cycle positioning - NAND revenues are currently muted but are expected to grow towards the second half of next year [38] Question: China market outlook - Management expects nominally solid business levels in China, with lower visibility for the second half of the year [45]

Financial Data and Key Metrics Changes - Nova achieved record quarterly revenue of $224.6 million in Q3 2025, reflecting a robust 25% year-over-year growth and a 2% increase quarter-over-quarter [3][11] - Blended gross margins were 57% on a GAAP basis and 59% on a non-GAAP basis, aligning with guidance [11] - Operating margin reached 28% on a GAAP basis and 32% on a non-GAAP basis, demonstrating the scalability of the business model [12] - Earnings per share were $1.90 on a GAAP basis and $2.16 on a non-GAAP basis [12] - Free cash flow generated was approximately $67 million for the quarter, totaling about $170 million for the first three quarters of 2025 [12][13] Business Line Data and Key Metrics Changes - Product revenue distribution was approximately 70% from logic and foundry and 30% from memory [11] - Record sales in memory devices were driven by strong demand for advanced DRAM and high bandwidth memory [3][5] - Advanced logic sales were also at record levels, primarily due to demand for gate all-around manufacturing processes [6] - Advanced packaging solutions saw increased demand, particularly for critical dimension measurements [7][8] Market Data and Key Metrics Changes - The company expects wafer fab equipment (WFE) growth in the mid-single digits for 2026, with potential upside from AI-driven demand [4][5] - Revenue from China is expected to be nominally higher year-over-year, but the share of overall business from China is projected to decrease [27][41] Company Strategy and Development Direction - Nova's strategy focuses on addressing unique process control challenges in manufacturing integrated circuit devices for AI applications [4][10] - The company is investing in R&D for long-term opportunities and strategic evaluations [12] - Nova is well-positioned to support customers with differentiated, scalable, and innovative solutions as the industry evolves [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver long-term growth and value, with expectations for continued growth in advanced logic, advanced packaging, and DRAM [4][10] - The company anticipates a record year in 2025, with annual growth of approximately 30% [14][16] Other Important Information - Nova opened a new state-of-the-art production facility in Mannheim, Germany, which will triple production capacity for advanced packaging optical metrology solutions [9] Q&A Session Summary Question: Wafer fab equipment outlook for next year - Management believes they can outperform the mid-single digit WFE growth outlook, with improvements noted since September discussions [18][19] Question: Gross margins and impact from China restrictions - Gross margins were reported at 59% for the quarter, with guidance for 58% next quarter; no significant impact from China restrictions was noted [20][21] Question: Foundry and Logic sales performance - Memory sales increased significantly, while Foundry and Logic saw a decline; management expects continued growth in memory [24][25] Question: Gate all-around business trajectory - The gate all-around business is expected to grow significantly, with an aggregated business expectation of about $500 million from 2024 to 2026 [31][32] Question: M&A opportunities - The company is looking for inorganic growth opportunities primarily in semiconductor process control, with a dedicated team pursuing these opportunities [33][34] Question: Advanced packaging revenue contribution - Advanced packaging is expected to contribute approximately 20% of revenues in 2025, up from 15% the previous year [37] Question: NAND cycle positioning - NAND revenues are currently muted but expected to grow towards the second half of next year [38] Question: China market outlook - Business in China is expected to remain solid, with lower visibility for the second half of the year; normalization is anticipated to continue into the first half of 2026 [41][45]

Financial Performance - Record quarterly revenue of $224.6 million, a 25% increase year-over-year[12] - GAAP net income of $61.4 million, or $1.90 per diluted share, a 19% increase year-over-year[12] - Non-GAAP net income of $70 million, or $2.16 per diluted share, a 24% increase year-over-year[12] - Total revenues for the three months ended September 30, 2025, increased to $224.6 million, up 25.5% from $179.0 million in the same period of 2024[30] - Operating income for the three months ended September 30, 2025, rose to $63.9 million, compared to $49.2 million in the same period of 2024, reflecting a 29.8% increase[30] - Net income for the three months ended September 30, 2025, was $61.4 million, an increase of 19.7% from $51.3 million in the same period of 2024[30] - Basic earnings per share for the three months ended September 30, 2025, were $2.05, up from $1.76 in the same period of 2024, marking a 16.5% increase[30] Revenue Projections - Management expects total revenues for Q4 2025 to be between $215 million and $225 million[18] - Anticipated diluted GAAP EPS for Q4 2025 is projected to be between $1.77 and $1.95[18] - Anticipated diluted non-GAAP EPS for Q4 2025 is projected to be between $2.02 and $2.20[18] - The estimated non-GAAP net income per diluted share for the fourth quarter of 2025 is projected to be between $2.02 and $2.20[36] Operating Metrics - Gross margin in Q3 2025 was 56.7%, compared to 57.8% in Q2 2025[15] - Operating expenses in Q3 2025 were $63.6 million, up from $61.6 million in Q2 2025[15] - Gross profit for the three months ended September 30, 2025, was $127.4 million, representing a gross margin of 57%[34] - Cash flows from operating activities for the three months ended September 30, 2025, were $71.3 million, compared to $47.0 million in the same period of 2024, indicating a 51.5% increase[32] - Research and development expenses for the three months ended September 30, 2025, were $36.7 million, up from $29.1 million in the same period of 2024, reflecting a 26.3% increase[30] Cash Flow and Investment - The company reported a net cash used in investing activities of $392.3 million for the three months ended September 30, 2025, compared to $24.2 million in the same period of 2024[32] - The company experienced a net cash provided by financing activities of $680.4 million for the three months ended September 30, 2025, compared to $70,000 in the same period of 2024[32] Market Outlook - Positive semiconductor market forecasts and increased AI-driven demand expected to support growth in 2026[13] - Record quarterly revenue from memory devices driven by demand for advanced DRAM & HBM devices[12]

Core Insights - Nova achieved record third-quarter results with total revenues of $224.6 million, marking a 25% increase year-over-year and a 2% increase from the previous quarter [2][5] - The company anticipates continued growth into 2026, driven by strong demand in the semiconductor market and AI-related applications [2] Financial Performance - GAAP net income for Q3 2025 was $61.4 million, or $1.90 per diluted share, compared to $68.3 million, or $2.14 per diluted share in Q2 2025, and $51.3 million, or $1.60 per diluted share in Q3 2024 [4][5] - Non-GAAP net income for Q3 2025 was $70 million, or $2.16 per diluted share, slightly down from $70.4 million, or $2.20 per diluted share in Q2 2025, and up from $56.1 million, or $1.74 per diluted share in Q3 2024 [7][20] Revenue Breakdown - Revenue from products was $178.9 million, while services contributed $45.7 million, leading to total revenues of $224.6 million for Q3 2025 [18] - The record quarterly revenue was driven by strong demand for advanced DRAM and HBM devices, as well as advanced logic devices related to Gate-All-Around manufacturing processes [5][11] Cost and Margin Analysis - Gross margin for Q3 2025 was 56.7%, a slight decrease from 57.8% in Q2 2025 and consistent with 56.6% in Q3 2024 [3][20] - Operating expenses increased to $63.6 million in Q3 2025 from $61.6 million in Q2 2025 and $52.1 million in Q3 2024 [3] Future Outlook - Management provided guidance for Q4 2025, expecting revenues between $215 million and $225 million, with diluted GAAP EPS projected between $1.77 and $1.95, and non-GAAP EPS between $2.02 and $2.20 [6][21]

Core Insights - Semiconductor companies are expected to report strong performance in Q3 2025, driven by solid demand and a 15.8% quarter-over-quarter increase in global semiconductor sales to $208.4 billion [1][10] Industry Performance - The semiconductor industry is benefiting from robust sales growth across various products, including microprocessors, memory chips, and advanced driver assistance systems [3] - Demand from hyperscalers, cloud service providers, and AI companies is driving the rise in microchip sales, with significant capital expenditure directed towards acquiring more powerful chips [4] - Inventory normalization among industrial and automotive customers, particularly in the Chinese electric vehicle market, is contributing to sales growth [5] Company-Specific Insights - nLight is expected to report revenues of $62.49 million, an 11.3% increase year-over-year, with strong performance in the Aerospace and Defense market [8][9] - Applied Optoelectronics anticipates revenues of $119.91 million, an 84.1% increase year-over-year, driven by demand in Datacenter and CATV businesses [12][13] - Diodes expects revenues of $392.5 million, a 12.1% increase year-over-year, supported by demand in AI-related applications and the China EV market [15][16][17] - Nova's revenues are projected to increase, benefiting from rising demand in logic and advanced packaging segments, with a bottom line estimate of $2.12 per share, a 21.8% year-over-year increase [18][19][20] - Synaptics anticipates revenues of $289.4 million, a 12.3% increase year-over-year, with strong momentum in its Core IoT business and new product launches [22][23][24]

Core Insights - Q Precious & Battery Metals Corp. (QMET) has confirmed multiple fault-controlled degassing corridors across key target areas in Nova Scotia, which will serve as priority drilling targets for its inaugural hydrogen exploration drill program in collaboration with Québec Innovative Materials Corp. (QIMC) [1][2] Summary by Sections Hydrogen Exploration Targets - The confirmed target zones include the Salt Spring-Oxford 2 Zone, the Apple River-Sand River-Shulie structural corridors, and the Oxford-Springhill sectors [2] Radon-Thoron and Hydrogen Correlation - Recent fieldwork has verified high concentrations of radon and thoron associated with hydrogen anomalies, indicating deep-seated gas migration pathways [3][4] Hydrogen Concentration Data - At Springhill and Salt Spring 2 licenses, hydrogen concentrations ranged from 235 ppm to over 1,000 ppm H₂, with radon values between 12,000 to 71,000 Bq/m³ and thoron values from 9,000 to 34,000 Bq/m³ [5] - Along the Apple River-Sand River-Shulie corridors, radon ranged from 5,000 to 85,000 Bq/m³ and thoron from 4,000 to 30,000 Bq/m³, with hydrogen concentrations between 178 ppm and 366 ppm H₂ [6] - In the Oxford sector, radon values reached 27,000 Bq/m³, thoron 25,000 Bq/m³, and hydrogen concentrations peaked at 1,662 ppm [7] Drilling Preparation - The correlation between elevated radon-thoron emissions and high hydrogen values provides precise subsurface targets for drilling, indicating zones of sustained permeability and active gas migration [9] - QMET is preparing for drilling deployment, having completed a flow-through private placement to fund the drilling and technical collaboration with QIMC [10][11] Milestone in Hydrogen Program - This transition marks a significant milestone in QMET's Nova Scotia Hydrogen Program, moving from surface geochemical mapping to subsurface confirmation of natural hydrogen systems [12] Company Overview - Q Precious & Battery Metals Corp. is a Canadian natural resource exploration company targeting critical and precious metals as well as Clean Natural White Hydrogen, with flagship projects in Quebec and Nova Scotia [13]