Core Insights - Fair Isaac Corporation (FICO) reported fourth-quarter fiscal 2025 non-GAAP earnings of $7.74 per share, exceeding the Zacks Consensus Estimate by 5.45% and reflecting an 18.3% year-over-year increase [1] - Revenues reached $515.8 million, surpassing the consensus mark by 0.78% and increasing 13.6% year over year, with contributions from the Americas (87%), EMEA (8%), and Asia Pacific (5%) [1] - Scores, which account for 60.4% of total revenues, rose 25% year over year to $311.6 million [1] Revenue Breakdown - Software revenues, including analytics and digital decisioning technology, declined 0.2% year over year to $204.2 million [2] - Software Annual Recurring Revenues (ARR) increased 4% year over year, driven by a 16% growth in platform ARR, while non-platform ARR declined by 2% [3] - On-premises and SaaS Software, making up 35.4% of revenues, increased 0.4% year over year to $182.4 million [3] - Professional services revenues, accounting for 4.2% of total revenues, decreased 4.8% year over year to $21.8 million [3] Scoring Solutions Performance - Business-to-business (B2B) scoring solutions revenues increased 29% year over year, primarily due to higher unit prices and increased mortgage originations [4] - Business-to-consumer (B2C) scoring solutions revenues rose 8% year over year, driven by growth in myFICO.com and indirect channel partners [4] - Mortgage originations revenues surged 55% year over year, while auto originations revenues increased by 24% [5] Operating Metrics - Research and development expenses as a percentage of revenues increased by 10 basis points year over year to 9.9% [6] - Selling, general, and administrative expenses as a percentage of revenues decreased by 270 basis points year over year to 24.3% [6] - Non-GAAP Operating margin improved to 54% in the fourth quarter of fiscal 2025, compared to 52% in the same quarter of the previous year [6] Financial Performance - Adjusted EBITDA rose 18.3% year over year to $286.6 million, with an adjusted EBITDA margin of 55.6% compared to 53.4% in the prior year [7] - As of September 30, 2025, FICO had $134 million in cash and cash equivalents, with total debt at $3.06 billion [8] - Cash flow from operations was $223.6 million in the fourth quarter, down from $286.2 million in the prior quarter, while free cash flow was $210.8 million compared to $276.2 million previously [8] Future Guidance - FICO anticipates fiscal 2026 revenues of $2.35 billion and non-GAAP earnings of $38.17 per share [9][10]

Core Insights - DoorDash (DASH) reported Q3 2025 earnings of $0.55 per share, an increase from $0.38 per share in the same quarter last year, but missed the Zacks Consensus Estimate by 19.12% [1][7] - Revenues rose 27.3% year over year to $3.45 billion, surpassing the consensus estimate by 2.41% [1][7] - Following the earnings report, DoorDash shares fell 9.84% in pre-market trading [1] Q3 Performance Details - Total orders increased by 21% year over year to 776 million, exceeding the Zacks Consensus Estimate by 0.69% [2] - Marketplace Gross Order Value (GOV) grew 25% year over year to $25 billion, beating the consensus mark by 1.84% [2] - Adjusted gross profit reached $1.81 billion, a 31.4% increase year over year, with adjusted gross margin expanding by 160 basis points to 52.5% [2] Financial Metrics - Contribution margin improved to 36.8% from 34.4% in the previous year [3] - Adjusted sales and marketing expenses rose 21.3% year over year to $542 million [3] - Adjusted EBITDA was $754 million, up 41.5% year over year, with an adjusted EBITDA margin expansion of 220 basis points to 21.9% [3] Balance Sheet and Cash Flow - As of September 30, 2025, DoorDash had $8.32 billion in cash and cash equivalents, up from $7.74 billion as of June 30, 2025 [4] - Cash flow from operations was $871 million in Q3, compared to $504 million in the previous quarter [4] - Free cash flow increased to $723 million from $355 million in the previous quarter [4] Q4 Guidance - For Q4 2025, DoorDash expects Marketplace GOV to be between $28.9 billion and $29.5 billion [5] - Adjusted EBITDA is projected to be in the range of $710 million to $810 million [5] - The company anticipates stock-based compensation expenses of approximately $1.1 billion and depreciation and amortization expenses of roughly $700 million for 2025 [5]

Core Viewpoint - Nuvini Group Limited has announced its long-term operating and profitability targets, emphasizing a focus on operational efficiency and profitable growth as it transitions to USD reporting and prepares to provide updated financial guidance [1][4]. Financial Performance and Guidance - Nuvini expects fiscal year 2025 EBITDA to be in the range of $9 million to $11 million USD, consistent with the previously communicated range of R$50 million to R$60 million [3]. - The company will report all financial metrics in U.S. dollars to enhance transparency and comparability with U.S.-listed software peers [2]. Capital Allocation Strategy - Nuvini's capital allocation priorities include executing accretive acquisitions of recurring-revenue SaaS businesses at attractive 3×–5× EBITDA multiples, maintaining prudent leverage of 3.0x to 4.0x net debt/EBITDA, and focusing on shared technology and AI infrastructure to enhance long-term margins and returns on capital [6]. Long-term Goals - Over the next three to five years, Nuvini aims for consolidated EBITDA margins of 35% to 45%, strong annual organic revenue growth driven by recurring subscriptions, and a clear path to over $100 million in EBITDA within five years [9]. - The company seeks to replicate the successful financial architecture of global SaaS consolidators like Roper Technologies and Constellation Software [7]. Management Actions - Members of Nuvini's management team have purchased shares in the open market, reflecting confidence in the company's long-term value creation strategy [2]. - A Capital Markets Update will be released on November 5, 2025, to further elaborate on these targets [7]. Company Overview - Nuvini is headquartered in São Paulo, Brazil, and is recognized as Latin America's leading serial acquirer of B2B SaaS companies, focusing on acquiring profitable, high-growth SaaS businesses with strong recurring revenue and cash flow generation [8].

Core Insights - The current administration's policies are perceived as chaotic and potentially harmful to business and investor sentiment, with a focus on "tearing down" rather than constructive progress [2][3] - Businesses are adapting to new regulations and tariff changes, indicating resilience despite potential delays in earnings [3] - The Federal Reserve is facing challenges in balancing unemployment and inflation, leading to uncertainty in economic strength and a recent cut in the overnight lending rate by 0.25% [4] Business Adaptation - Companies are rearranging supply chains and adjusting import strategies to comply with evolving tariff rules, showcasing their flexibility [3] - Some technology firms are experiencing stock price declines due to fears surrounding AI competition, while others are positioned to benefit from AI integration [6][7] Investment Strategy - The investment approach focuses on established companies with long-term prospects, avoiding high-flying stocks like Nvidia, which have driven recent market gains [6] - The portfolio includes major tech players such as Google, Microsoft, Amazon, and life sciences companies like Danaher and Thermo Fisher, which are expected to thrive despite short-term challenges [7] Interest Rate Concerns - Long-term interest rates, particularly the 10-year Treasury rate, are a significant concern for investors, as they influence borrowing costs and business valuations [8] - Increasing debt and deficits could lead to higher interest rates, negatively impacting securities prices and corporate earnings [8] Market Outlook - The overall investment landscape is described as not great but manageable, with a focus on maintaining a resilient portfolio during uncertain times [9] - Confidence remains in the long-term performance of portfolio companies, with an emphasis on navigating current challenges effectively [9]

Core Insights - The NZS Growth Equity strategy reported a gross return of +4.09% and a net return of +3.93% for Q3, underperforming the Morningstar Global Target Market Exposure Index which had a return of +7.60% during the same period [2][3][4] - Year-to-date, the strategy achieved a gross return of +20.18% and a net return of +19.60%, slightly outperforming the Index's +18.26% [2][3] Performance Review - The equity market rally from Q2 2025 continued into Q3, leading to positive returns for the strategy, although it lagged behind the index [4] - Key contributors to returns included Information Technology, Communication Services, and Industrials, with Alphabet (GOOG) benefiting from a favorable antitrust ruling and increased AI market appreciation [5] - Detractors included Financials, Health Care, and Consumer Discretionary, notably Constellation Software (CNSWF) due to CEO transition and Fiserv (FI) lowering growth outlook [6] Portfolio Positioning - The portfolio saw elevated name turnover, with additions like Workday and Gartner, while exiting positions in NVIDIA and several other stocks [8][9] - The strategy's resilient weight increased to ~59%, with a modest decline in IT overweight due to active decisions [9] Focus Position: SailPoint, Inc. (SAIL) - SailPoint is positioned in identity governance and administration, crucial for zero-trust security, especially with the rise of AI vulnerabilities [14][15] - The total addressable market (TAM) for identity governance is expanding significantly due to the increasing prevalence of machine identities in AI environments [18] - SailPoint's growth potential is supported by its recent monetization framework for non-human identities, with expectations for margin improvement [19]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Performance Overview - The Akre Focus Fund's Institutional share class reported a third quarter 2025 performance of -3.65%, significantly underperforming the S&P 500 Total Return, which was at 8.12% [3][4] - For the trailing 12-month period ending September 30, 2025, the Fund's Institutional share class achieved a return of 3.71%, compared to 17.60% for the S&P 500 Total Return [3] Key Holdings Impact - The primary contributor to the Fund's poor performance was a 26.06% decline in the share price of Constellation Software, which accounted for a 3.56% detriment to the Fund's performance in the quarter [5][6] - Constellation Software has been held by the Fund for over 11 years, with a compound annual rate of return of 24.97% since its initial purchase [7] Long-term Perspective on Constellation Software - Despite the recent drawdown, the Fund maintains confidence in Constellation Software's ability to navigate technological changes and protect its market position [8][9] - Constellation has demonstrated a compound annual total revenue growth rate of approximately 20% over the past decade, indicating strong underlying business performance [8] Leadership Transition - Mark Leonard, the founder of Constellation Software, announced his immediate step down from the President role due to health issues, raising concerns about leadership continuity [12][10] - The Fund expresses optimism regarding Mark Miller, the new President, who has been with Constellation since its first acquisition and is expected to uphold the company's foundational principles [14] Sector and Holdings Composition - As of September 30, 2025, the top five holdings in the Fund included Mastercard (12.4%), Brookfield Corp (10.6%), and Constellation Software (10.1%) [28] - The sector weightings revealed a significant concentration in Financials (52.1%) and Information Technology (20.7%) [28]

Core Insights - The Giverny Capital Asset Management ("GCAM") model portfolio showed a net return of 6.79% for Q3 2025, underperforming the S&P 500 TR which returned 8.12% during the same period [2][4] - Significant declines in key holdings, particularly Constellation Software, which dropped 18% in September due to the sudden retirement of its CEO, Mark Leonard, impacted overall portfolio performance [4][5] - The investment landscape is characterized by a mix of economic uncertainty and stock market exuberance, with concerns about tariffs and the agricultural sector, yet enthusiasm for AI investments remains high [6][7] Performance Overview - The portfolio's year-to-date return stands at 12.57%, trailing the S&P 500's 14.83% [2] - Over the past three years, the portfolio has achieved an annualized return of 24.05%, while the S&P 500 has returned 24.94% [2] - The portfolio's largest holdings include Arista Networks, Alphabet, and Meta Platforms, which collectively represent a significant portion of the total assets [30] Key Holdings and Transactions - The portfolio initiated a 3.5% position in Taiwan Semiconductor (TSM), which is positioned as a leading manufacturer in the semiconductor industry, capitalizing on the growing demand for high-performance chips [19][21] - Medpace Holdings, a contract research organization, saw a substantial increase in stock value, rising over 50% in one day following a strong earnings report [11][12] - The portfolio has trimmed positions in several strong performers, including Alphabet and Meta, while fully exiting Credit Acceptance due to concerns over its competitive position [25] Market Context - The semiconductor industry is experiencing rapid advancements, with TSMC leading in manufacturing capabilities, particularly in producing chips at smaller nanometer specifications [20][22] - The market is currently focused on AI-related stocks, which have significantly contributed to S&P 500 returns since the launch of ChatGPT in November 2022 [13][14] - Concerns about geopolitical risks, particularly regarding Taiwan, are prevalent, as TSMC is a critical supplier for major tech companies [22][24] Investment Philosophy - The portfolio emphasizes investments in companies with founder involvement in management, which is believed to align interests and foster strong corporate cultures [8] - The management team expresses confidence in the quality of their holdings and the leadership of companies like Medpace and TSMC, despite broader market uncertainties [7][12] - The approach remains cautious regarding the sustainability of the current market rally, with a focus on long-term value creation rather than short-term speculation [7][26]

Core Insights - Nuvini Group Limited is a leading acquirer and operator of vertical market SaaS businesses in Latin America, providing its fiscal year 2025 guidance and growth strategy [1] - The company anticipates generating approximately R$50 to R$60 million of EBITDA for the fiscal year ending December 31, 2025, with a current market value of around $45 million, indicating a significant valuation disconnect [2] - Nuvini's acquisition pipeline could increase annualized run-rate EBITDA to approximately R$85–95 million by the end of Q1 2026 if targets are acquired [3] Financial Performance - The company aims to reduce its cost of capital for future acquisitions from roughly 20% to 12% per annum, enhancing the attractiveness of acquisitions at 4x to 6x EBITDA multiples [4] - Nuvini's acquired SaaS businesses exhibit over 90% retention rates and strong cash conversion rates, aligning with the company's current portfolio [4] - The company projects that it could achieve over $100 million in EBITDA within the next five years while maintaining high cash conversion rates [5] Strategic Vision - Nuvini's financial architecture is modeled after successful software consolidators like Roper Technologies and Constellation Software, focusing on high margins and return on invested capital [6] - The integration of AI across all functions is expected to drive operational leverage, enhancing both revenue and cost efficiencies [6] - The company emphasizes a disciplined acquisition strategy, consistent organic growth, and a lower cost of capital as key components of its business model [5]

Market Overview - Canadian equities advanced in Q3, with the S&P/TSX Composite Total Return Index increasing by 12.5%, reaching an all-time high [2] - Seven of the eleven GICS sectors set new records, including energy, materials, industrials, consumer discretionary, consumer staples, financials, and utilities [2] - The U.S. dollar rose 2.3% against the Canadian dollar to $1.39 USD/CAD, although it remains down 3.2% year-to-date [3] Economic Context - Canada's economy showed modest improvement in July, with GDP growth affected by high unemployment and low inflation [4] - The Bank of Canada and the Federal Reserve both cut rates, with the Bank of Canada lowering rates to 2.50% to stimulate housing and consumption [4] Sector Performance - On an absolute return basis, 10 of 11 GICS sectors increased in Q3, with materials (+37.8%), IT (+13.2%), and energy (+12.6%) being the best performers [5] - Weakness in industrials was noted, particularly in Canadian railways, which faced pressure from softer shipping volumes and trade uncertainty [9] - Energy sector performance was mixed, with volatility in crude oil and natural gas prices, ending at $62.37/bbl and $3.30/mmbtu respectively [6] Strategy Performance - The ClearBridge Canadian Equity Strategy underperformed the benchmark in Q3, primarily due to cyclical exposure in materials [8] - Financials were the best contributors to the Strategy's performance, with strong selection benefiting from not owning underperforming stocks [12] Portfolio Positioning - The Strategy's largest sector exposures were in financials, industrials, and energy, with an underweight in materials and financials [18] - Trading activity increased, with selective exposure to out-of-favor cyclical stocks and trimming of defensive sectors [14] Corporate Actions - Several corporate actions occurred, including Parkland Corp.'s acquisition by Sunoco LP and MEG Energy's unsolicited bid from Strathcona Resources [13] - Teck Resources and Anglo American agreed to a merger, creating a global mining leader with significant copper exposure [13] Outlook - Canadian equity markets continued to show strength, supported by resilient corporate earnings amid global dynamics [19] - Investor sentiment remains cautious but resilient, with macro headwinds and political risks increasingly priced into expectations [19]