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Core Viewpoint - Agora, Inc. is set to release its financial results for Q4 and the fiscal year ending December 31, 2025, on March 2, 2026, after U.S. market close [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call scheduled for 5 p.m. Pacific Time / 8 p.m. Eastern Time on the same day [1] - Investors are encouraged to log on at least 15 minutes prior to the broadcast to participate in the call [1] - The earnings release and accompanying slides will be available on Agora's investor relations website prior to the conference call [2] Group 2: Company Overview - Agora, Inc. is a holding company for two independent businesses, Agora and Shengwang, and is headquartered in Santa Clara, California [3] - Agora is recognized as a pioneer and global leader in conversational AI and Real-Time Engagement Platform-as-a-Service (PaaS), offering developers APIs for real-time conversational AI, video, voice, chat, and interactive streaming [3] - Shengwang, headquartered in Shanghai, China, is also a leading provider of conversational AI and Real-Time Engagement PaaS in the Chinese market [4]

Financial Data and Key Metrics Changes - In Q4 2025, Ribbon generated revenues of $227 million, a decrease of 10% from the prior year [14] - For the full year, revenues were $845 million, an increase of 1% or $11 million year-over-year [14] - Adjusted EBITDA for Q4 was $40 million, a $15 million decrease from the prior year [15] - Non-GAAP gross margin for Q4 was 55.4%, down 270 basis points due to lower software revenue [14] - Non-GAAP net income for Q4 was $106 million, a $78 million improvement year-over-year, driven by a tax benefit [16] Business Line Data and Key Metrics Changes - In the IP optical networks segment, Q4 revenues were $85 million, a 2% decrease year-over-year [17] - Cloud-and-edge segment revenue in Q4 was $142 million, down 14% year-over-year but up 14% sequentially [17] - For the full year, cloud-and-edge sales increased 1%, with service provider sales growing 8% [13] Market Data and Key Metrics Changes - Sales to U.S. federal agencies decreased by approximately $10 million year-over-year in Q4 [7] - Sales to global service providers increased 5% and accounted for 70% of overall sales [8] - Sales in the Asia-Pacific region grew 19% year-over-year, driven by significant business growth in India [8] Company Strategy and Development Direction - The company aims to drive profitable growth through modernization projects with service providers and enterprises [21] - There is a focus on integrating voice technologies with AI platforms, particularly through the Acumen AIOps platform [24] - The company is exploring opportunities in high-speed broadband infrastructure, particularly in underserved regions [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the backlog and customer base for secure voice and IP optical solutions [21] - The company is taking a cautious approach to 2026 guidance due to macro uncertainties and restructuring efforts [28] - Management expects revenue growth to be back-end loaded in 2026, with significant opportunities anticipated in the second half of the year [43] Other Important Information - The company repurchased approximately 972,000 shares in Q4, totaling 2.5 million shares for the year [19] - A deferred tax benefit of approximately $90 million was recognized in Q4, providing a favorable impact on non-GAAP EPS [15] Q&A Session Summary Question: Details on new cloud and edge bookings - The $50 million in new bookings were from non-Verizon customers, spread across a growing base of about a dozen different customers [32] Question: Clarification on delays affecting revenue - Delays were primarily due to project backlog and budget issues, with significant impacts from U.S. federal and service provider customers [38][39] Question: Expectations for sequential growth throughout the year - Management indicated that they expect sequential growth after the first quarter, with a cautious outlook due to various macro factors [40][41] Question: Federal segment revenue decline - U.S. federal business revenue was approximately $10 million in Q4, down from over $20 million in the previous year [71] Question: Insights on Acumen platform POCs - The company is focusing on deploying Acumen with lead customers and has several POCs lined up, aiming for revenue generation in the second half of the year [80]

Financial Data and Key Metrics Changes - In Q4 2025, Ribbon generated revenues of $227 million, a decrease of 10% from the prior year [14] - For the full year, revenues were $845 million, an increase of 1% or $11 million year-over-year [14] - Adjusted EBITDA for Q4 was $40 million, a $15 million decrease from the prior year [15] - Non-GAAP net income for Q4 was $106 million, a $78 million improvement year-over-year, driven by a tax benefit [16] Business Line Data and Key Metrics Changes - IP Optical Networks revenue in Q4 was $85 million, a 2% decrease versus the prior year, while full year revenue was $333 million, up 1% from 2024 [16] - Cloud and Edge revenue in Q4 was $142 million, down 14% year-over-year, but full year revenues were $511 million, a $6 million increase from 2024 [17] - For the full year, sales to global service providers increased 5% and were 70% of overall sales, while sales to enterprise customers increased 2% year-over-year [8] Market Data and Key Metrics Changes - Sales to U.S. federal agencies were approximately $10 million lower than the fourth quarter of 2024 [7] - EMEA sales were down year-over-year due to reduced sales to Russia, while excluding Russia, sales in EMEA were flat [8] - Sales in the Asia-Pacific region grew 19% year-over-year, significantly driven by business in India [8] Company Strategy and Development Direction - The company aims to drive profitable growth through modernization projects with service providers, governments, and enterprises [21] - There is a focus on integrating voice technologies with AI platforms, particularly through the Acumen AIOps platform [24] - The company is exploring opportunities in high-speed broadband infrastructure, particularly in underserved regions [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism despite a dynamic macro environment, citing a strong backlog and customer base [4] - The company is taking a cautious approach for 2026 due to uncertainties in investment priorities and federal spending [28] - Management expects revenue growth to be back-end loaded in 2026, with significant opportunities anticipated in the second half of the year [43] Other Important Information - The company repurchased approximately 972,000 shares of common stock in Q4 for a total cost of approximately $3.3 million [19] - A deferred tax benefit of approximately $90 million was recognized in Q4, resulting in cash tax savings of $15 million-$20 million per annum [15] Q&A Session Summary Question: Details on new Cloud and Edge bookings - The $50 million of new bookings were from non-Verizon customers, spread across a growing base of about a dozen different customers [32] Question: Clarification on delays affecting revenue - Delays were primarily due to backlog projects and budget issues, with significant impacts from a U.S. customer undergoing restructuring [38][39] Question: Expectations for sequential growth throughout the year - Management indicated that they expect sequential growth throughout the year, with a cautious approach due to current uncertainties [40][41] Question: Federal segment revenue decline - U.S. federal business revenue was approximately $10 million in Q4, down from over $20 million in the prior year [70] Question: Insights on Acumen platform POCs - The company is in deployment with its lead customer and has about a dozen other POCs lined up, focusing on demonstrating OpEx savings [78]

Core Insights - Cerence Inc. reported strong Q1 fiscal year 2026 results, achieving a GAAP revenue of $115.1 million, significantly up from $50.9 million in Q1 FY25, with a gross margin of 86.3% compared to 65.0% in the previous year [4][6] - The company experienced a record free cash flow of $35.6 million, reflecting disciplined execution and profitability [6][10] - Cerence's customer momentum is accelerating, with five major programs in progress and positive feedback from CES 2026, showcasing next-generation AI experiences [3][6] Financial Performance - GAAP total operating expenses for Q1 FY26 were $70.0 million, up from $50.0 million in Q1 FY25, while non-GAAP total operating expenses were $57.3 million compared to $34.1 million [4][5] - The net loss for Q1 FY26 was $5.2 million, an improvement from a net loss of $24.3 million in Q1 FY25 [4][6] - Adjusted EBITDA for the quarter was $44.6 million, a significant increase from $1.4 million in the same quarter last year [4][6] Key Performance Indicators - Cerence's technology was present in 51% of worldwide auto production over the trailing twelve months [7] - The number of Cerence connected cars shipped increased by 14% year-over-year [7] - Adjusted total billings showed a 2% increase year-over-year [7] Guidance and Outlook - For Q2 FY26, Cerence expects revenue between $58 million and $62 million, with gross margins projected between 71% and 72% [9][10] - The full fiscal year 2026 guidance remains reaffirmed, with expected revenue in the range of $300 million to $320 million and adjusted EBITDA projected between $50 million and $70 million [10][11]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $546 million, which is above the midpoint of guidance and represents a 1% year-over-year decline compared to guidance of -7% to +2% [17] - Adjusted EBITDA grew 45% year-over-year to $132 million, equating to the total Adjusted EBITDA generated in all of fiscal 2025 [4][20] - GAAP gross margin was 46.5%, and non-GAAP gross margin was 47.5%, both above the high end of the guidance range [18] - Non-GAAP earnings per share increased by 37% to $0.93, up from $0.68 last year [21] Business Line Data and Key Metrics Changes - Revenue in the Americas grew by 1% year-over-year, while EMEA revenue declined by 4% and APAC by 5% [17] - Plug-ins, particularly driven by the Era 100, delivered double-digit growth [17] - The Era 100 has led to a 40% year-over-year increase in new customer growth, marking the third consecutive quarter of acceleration [11] Market Data and Key Metrics Changes - The company holds approximately 6% of the $24 billion global premium audio market, with significant room for growth, especially outside core markets [12] - The company has seen dollar share gains in premium home theater in both the U.S. and EMEA [12] Company Strategy and Development Direction - The company aims to build durable, repeatable growth through five growth dimensions: product innovation, customer advocacy, effective marketing, geo expansion, and tapping into external demand trends [6][28] - The strategy emphasizes creating a cohesive system rather than standalone products, enhancing customer lifetime value and repeat purchases [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through cost inflation and supply chain volatility, particularly regarding memory costs [31] - The second quarter is expected to be quieter, but the first half of fiscal 2026 reflects a stabilizing business with a clear plan to return to growth [15][16] Other Important Information - The company generated $157 million in free cash flow, up from $143 million last year [22] - The balance sheet remains strong with a net cash balance of $363 million [21] Q&A Session Summary Question: Addressing rising memory costs and their impact on gross margins - Management acknowledged memory pricing as a headwind but emphasized their team's capability to manage cost inflation and secure additional suppliers [31][32] Question: Impact of new marketing leadership on programs - Management indicated that the new CMO is already making progress in aligning marketing efforts and that improvements will be seen quickly [33][34] Question: Broader health of the premium home theater market - Management noted continued share growth in the Americas and EMEA, with a focus on premium experiences despite a K-shaped economy [41][42] Question: Clarification on gross margin performance - Management highlighted cost reduction efforts, favorable FX impacts, and pricing adjustments as key factors in achieving high gross margins [46][49]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $546 million, which is above the midpoint of guidance and represents a 1% year-over-year decline compared to guidance of -7% to +2% [17][18] - Adjusted EBITDA grew 45% year-over-year to $132 million, equating to the total adjusted EBITDA generated in all of fiscal 2025 [4][20] - GAAP gross margin was 46.5%, and non-GAAP gross margin was 47.5%, both above the high end of guidance [18] - Non-GAAP earnings per share increased by 37% to $0.93, up from $0.68 last year [21] Business Line Data and Key Metrics Changes - Revenue in the Americas grew by 1% year-over-year, while EMEA revenue declined by 4% and APAC by 5% [17] - Plugins delivered double-digit growth, driven by strong performance from the Era 100 product [17][18] - The Era 100 saw a 40% year-over-year increase in new customer growth, marking the third consecutive quarter of acceleration [11][18] Market Data and Key Metrics Changes - The company holds approximately 6% of the $24 billion global premium audio market, with opportunities to grow this share, particularly outside core markets [12] - The company experienced dollar share gains in premium home theater in both the U.S. and EMEA [12] Company Strategy and Development Direction - The company aims to build durable, repeatable growth through five growth dimensions: product innovation, customer advocacy, intentional marketing, geo expansion, and tapping into external demand trends [6][28] - The strategy emphasizes creating a cohesive system rather than standalone products, enhancing customer lifetime value and repeat purchases [5][6] - The company plans to introduce new products in the second half of fiscal 2026, including the recently unveiled Sonos Amp Multi, which aligns with the system strategy [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through cost inflation and supply chain volatility, particularly regarding memory costs [31][32] - The company anticipates a quieter second quarter but expects to see acceleration in growth in the second half of fiscal 2026 [15][16] - Management highlighted the importance of returning to growth and structural profitability, focusing on executing across multiple dimensions [57][58] Other Important Information - The company generated free cash flow of $157 million, up from $143 million last year [22] - The balance sheet remains strong with a net cash balance of $363 million [21] Q&A Session Questions and Answers Question: How is the company addressing rising memory costs and their impact on gross margins? - Management acknowledged memory pricing as a headwind but emphasized their team's ability to manage cost inflation and secure additional memory suppliers [31][32] Question: When will the impact of the new CMO on marketing programs be seen? - Management indicated that the new CMO is already making progress and that improvements in marketing will be seen gradually rather than through a single large campaign [33][34] Question: What is the outlook for the premium home theater market? - Management noted continued growth in share within the Americas and EMEA, despite a K-shaped economy affecting demand for entry-level experiences [42][43] Question: Can you provide details on the gross margin performance and its drivers? - Management highlighted cost reduction efforts, favorable FX, and pricing adjustments as tailwinds, while tariffs and product mix were noted as headwinds [46][49]

Core Insights - AudioCodes reported modest revenue growth in Q4 and full year 2025, with a strategic shift towards becoming an "AI-driven hybrid cloud software and services company" [4][6][13] Financial Performance - Q4 gross margin was 65.6%, down from 66.2% year-over-year; operating income decreased to $3.7 million (6% of revenue) from $4.1 million (6.7%) [1] - Q4 revenue was $62.6 million, a 1.7% increase from $61.6 million a year earlier; full-year 2025 revenue reached $245.6 million, up 1.4% from $242.2 million in 2024 [3][7] - GAAP net income for Q4 fell to $1.9 million ($0.07 per diluted share) from $6.8 million ($0.22) in the same quarter last year; full-year GAAP net income was $9.0 million ($0.31 per diluted share), down from $15.3 million in 2024 [1][7] Revenue Breakdown - Services revenue in Q4 was $34.6 million, representing 55.3% of total revenue, and increased 1% year-over-year; full-year services revenue totaled $130.7 million, slightly up from $130.2 million in 2024 [3] - Revenue by geography in Q4: 47% North America, 35% EMEA, 13% Asia Pacific, and 5% Central and Latin America; top 15 customers accounted for 58% of revenue [2] Strategic Initiatives - The company is focusing on VoiceAI and managed services, with annual recurring revenue (ARR) from these segments reaching $79 million, a 22% year-over-year growth; VoiceAI revenue grew approximately 35% to around $17 million in 2025 [6][14] - AudioCodes aims for VoiceAI to achieve $50 million in revenue by 2028, targeting 40% to 50% annual growth [6][14] Operational Metrics - The company ended 2025 with $75.7 million in cash and a $75 million backlog for Live services, up from $69 million a year earlier [5][22] - Non-GAAP gross margin was 65.9%, within the long-term target range of 65% to 68% [15] Customer Engagement - The Microsoft business increased 7% sequentially in Q4, driven by connectivity strength; total contract value signed grew 5% year-over-year [18] - A significant contract was signed with AT&T for a public university migration to Teams Voice, alongside a deal with a European equipment manufacturer [19] Workforce and Investments - The company employed 981 individuals at the end of 2025, with a notable increase in R&D personnel focused on VoiceAI [17] - Non-GAAP operating expenses rose 6.2% year-over-year, attributed to investments in sales and marketing for the VoiceAI business [16]

Core Insights - AudioCodes reported a revenue increase of 1.7% year-over-year for Q4 2025, reaching $62.6 million, and a full-year revenue increase of 1.4% to $245.6 million [2][7] - The company experienced a decline in both GAAP and Non-GAAP net income for Q4 2025 compared to Q4 2024, with GAAP net income at $1.9 million ($0.07 per diluted share) and Non-GAAP net income at $4.5 million ($0.16 per diluted share) [4][5] - Annual Recurring Revenue (ARR) grew by 22% year-over-year to $79 million, driven by strong performance in managed services and conversational AI [10][11] Financial Performance - Q4 2025 EBITDA was $4.9 million, down from $5.2 million in Q4 2024, while full-year EBITDA decreased to $18.3 million from $21.1 million [3] - Non-GAAP EBITDA for Q4 2025 was $6.5 million, compared to $8.5 million in Q4 2024, with full-year Non-GAAP EBITDA at $24.8 million, down from $31.4 million [3] - The company reported a gross margin of 65.6% for Q4 2025 on a GAAP basis and 65.9% on a Non-GAAP basis [7] Shareholder Returns - AudioCodes repurchased 667,193 ordinary shares for $6.1 million during Q4 2025, with a total of $20.6 million available for further repurchases or dividends as of December 31, 2025 [12][13] - A cash dividend of $0.20 per share was declared, amounting to approximately $5.4 million, payable on March 6, 2026 [14] Strategic Focus - The company is transitioning towards becoming a Voice AI-focused hybrid cloud software and services provider, with significant growth in its conversational AI portfolio, which saw over 50% revenue growth in Q4 2025 [9][11] - Investments in Live services and conversational AI are expected to contribute to sustained growth in the coming years [11]

Core Insights - Retailers are projected to control 47% of the North American TV operating system market by 2029, an increase from 27% in 2025, indicating a significant shift in market dynamics [1] - The trend highlights a growing emphasis on e-commerce-driven retail media advertising over traditional TV shipment leadership, reflecting changing priorities within the retail sector [1] - The theme of this shift was prominently featured at CES 2026 in Las Vegas, alongside advancements in conversational AI-driven features [1] Industry Trends - The rapid transition in the TV OS market underscores the evolving landscape of retail media and advertising strategies [1] - Omdia's forecasts indicate a broader global opportunity in the TV OS sector, suggesting potential growth areas for stakeholders [1]