Financial Data and Key Metrics Changes - Total investment income decreased to $1.6 million from $2.2 million year-over-year, reflecting both debt repayments and a slowdown in origination dynamics [13][14] - Net investment income increased to $993,000 compared to $887,000 in the same quarter last year, demonstrating effective expense management [15] - Net asset value (NAV) declined to $53.6 million or $18.06 per share from $19.10 per share sequentially, primarily due to valuation adjustments and dividend payments [16] Business Line Data and Key Metrics Changes - The investment portfolio's fair value was $44.3 million across 19 companies, down from year-end, largely due to significant repayments and valuation adjustments [6][7] - The portfolio mix consisted of 83% debt and 17% equity, with a weighted average yield of 12.2% [7] - 39% of investment income was attributable to non-cash PIK interest, up from 24% in the prior year [14] Market Data and Key Metrics Changes - The market for new deal origination remains sluggish, with borrowers facing tighter credit conditions and higher financing costs [4] - The company noted a greater use of PIK interest by borrowers as they adapt to the current financing environment [4] Company Strategy and Development Direction - The company aims to maintain its dividend through disciplined expense management and strong liquidity, even during periods of muted investment activity [6][17] - The focus is on being selective in deal origination while remaining prepared to capitalize on opportunities as market conditions improve [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging lending environment, highlighting a strong balance sheet with no debt and significant liquidity [18] - There are early signs that anticipated interest rate reductions could stimulate deal origination in the future [19] Other Important Information - The company declared and paid a regular quarterly dividend of $0.29 per share, maintaining this level for three consecutive quarters [5][17] - The company experienced a realized loss of $2.9 million on Tilson Technology Management following its Chapter 11 process [10] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Core Viewpoint - WM Technology, Inc. held its Third Quarter 2025 Earnings Conference Call on November 6, 2025, to discuss financial results and future outlook [1][4]. Financial Performance - The earnings announcement and supporting slide deck are available on the Investor Relations website for stakeholders to review [3]. - The company will discuss both GAAP and non-GAAP financial measures during the call, emphasizing that non-GAAP measures should complement, not replace, GAAP information [4]. Leadership Involvement - The call featured key executives, including CEO Doug Francis and CFO Susan Echard, indicating a strong leadership presence in discussing the company's performance [2]. Forward-Looking Statements - The company will make forward-looking statements regarding business outlook, strategies, and long-term goals, while cautioning that these statements are subject to various risks and uncertainties [3].

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $10.5 million, a 9% increase from $9.6 million in Q3 2024, marking the fifth consecutive quarter of year-over-year growth [5][10] - Gross profit for Q3 2025 was $3.2 million, compared to $0.1 million in Q3 2024, with a gross margin of 30.7%, up from 0.9% in the prior year [12] - Net loss for Q3 2025 was $4.3 million or negative $0.08 per diluted share, an improvement from a net loss of $7.6 million or negative $0.15 per diluted share in Q3 2024 [13] Business Line Data and Key Metrics Changes - Lab Essentials revenue was $8.3 million in Q3 2025, a 16% increase from $7.2 million in Q3 2024, driven by higher average revenue per customer [10][11] - Clinical Solutions revenue was $1.7 million in Q3 2025, a 13% decrease from $2.0 million in Q3 2024, attributed to lower average revenue per customer [11] Market Data and Key Metrics Changes - Approximately 25% of total revenue is derived from custom products purchased by biopharma customers, with the remaining 75% growing in the low double digits [8][16] - The company has seen a steady increase in demand for custom reagents in market segments such as animal health, life science tools, and diagnostics [8] Company Strategy and Development Direction - The company is focused on long-term, sustainable growth, aiming for $200 million in annualized revenue without significant additional capital investments [6] - Investments in distributor management, purchasing integration, and price optimization are expected to drive operational efficiency and revenue growth [6][9] - The company is pursuing potential tuck-in acquisitions and collaborations to enhance capabilities and accelerate growth [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for end markets, despite current softness in demand for clinical solutions from biopharma customers [19] - The company expects modest growth in custom biopharma products and low double-digit growth in the remaining revenue segments [16][18] Other Important Information - The company reiterated its 2025 total revenue guidance of $39 million to $42 million, expecting to finish slightly below the midpoint of that range [15] - Capital expenditures for Q3 2025 were $0.4 million, with free cash outflow remaining at $2.4 million, consistent with Q3 2024 [15] Q&A Session Summary Question: How have customer conversations trended regarding MFN Pharma Tariffs? - Management noted optimism but indicated that actual purchasing actions have not yet been observed, with limited conversations about ramping up spending [21][22] Question: Update on the RUO Plus initiative? - The initiative is performing well, providing flexibility for customers not ready for GMP, and is seen as a pathway to migrate them to GMP in the future [24] Question: Expected product mix and interest in custom portfolio? - Management highlighted that 75% of the business is growing double digits, with increased interest in tools and diagnostics, indicating a strong performance across all market segments [29][30] Question: Insights on clinical solutions customer acquisition? - Management confirmed ongoing customer acquisition, with a focus on larger-sized customers, and noted that the mix may change but remains positive [36][38] Question: Gross margin improvement trajectory? - Management indicated that gross margin improvements are expected to continue, driven by high fixed costs and ongoing efficiency projects [42][44] Question: Areas for driving more efficiencies? - The company is continuously seeking operational efficiencies across various functions, including labor savings and IT infrastructure improvements [48][50]

Financial Data and Key Metrics Changes - The company reported an adjusted net loss of $3 million in Q3 2025, an improvement from an adjusted net loss of $16 million in Q2 2025, driven by higher lock volume and servicing revenue [12][14] - Pull-through weighted rate lock volume increased by 10% to $7 billion from $6.3 billion in the previous quarter, aligning with guidance [12][16] - Adjusted total revenue rose to $325 million in Q3 2025, compared to $292 million in Q2 2025 [12][14] - The pull-through weighted gain on sale margin was 339 basis points, up from 330 basis points in the prior quarter [13][14] - Total expenses increased by 6% to $19 million, primarily due to one-time benefits recognized in the prior quarter [14][16] Business Line Data and Key Metrics Changes - Loan origination volume decreased by 3% to $6.5 billion in Q3 2025 from $6.7 billion in Q2 2025 [13] - Servicing fee income increased from $108 million in Q2 2025 to $112 million in Q3 2025, reflecting growth in the servicing portfolio [14] Market Data and Key Metrics Changes - The company expects pull-through weighted lock volume in Q4 2025 to be between $6 billion and $8 billion, and origination volume between $6.5 billion and $8.5 billion [16][17] Company Strategy and Development Direction - The company is focused on a diversified business model with best-in-class origination capabilities across multiple channels, aiming to profitably regain market share [5][10] - A business transformation was initiated in Q3 2025, including new leadership across origination channels and technology functions [6][10] - The company is leveraging technology and innovation to improve customer experience and operational efficiency [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to fund growth opportunities and maintain a strong capital structure despite upcoming debt maturities [21][34] - The company anticipates improved profitability with a sustained decrease in mortgage rates, leveraging its direct origination platform and technology investments [18][34] Other Important Information - The company ended Q3 2025 with $459 million in cash, an increase of $51 million from Q2 2025 [17] - The leadership team has been reshaped to focus on profitable market share growth and operational efficiency [10][18] Q&A Session Summary Question: Outlook for funding growth with capital given upcoming debt maturities - Management feels confident about funding growth opportunities and has supportive lender relationships [21] Question: Minimum level of originations needed to return to profitability - Management indicated that profitability is closely tied to margins, which are dynamic and will improve with increased volume [30] Question: Consideration of capital raising when stock price was higher - Management acknowledged the attractiveness of raising capital at higher stock valuations and is exploring various options to strengthen the capital structure [33][34]

Financial Data and Key Metrics Changes - The company reported net sales of $376.4 million for Q3 2025, representing a 5% increase year-over-year [6] - Adjusted EBITDA for the quarter was $44.4 million, up 6% year-over-year [6][27] - Gross margin improved to 30.4% from 29.9% in the same quarter last year, driven by favorable shifts in product line mix [25] - Net loss for Q3 was $0.6 million, or $0.02 loss per diluted share, compared to net income of $4.8 million, or $0.11 per diluted share in the same period last year [27] Business Line Data and Key Metrics Changes - The PVG segment achieved net sales of $125.9 million, a 15% growth year-over-year [13] - AAG reported net sales of $117.8 million, up 17.4% year-over-year [16] - SSG segment saw net sales of $132.7 million, down 11% year-over-year [18] Market Data and Key Metrics Changes - The automotive OE business remained stable, benefiting from premium vehicle SKUs, despite supply chain disruptions [13] - The power sports business is stabilizing as dealer inventories improve, with growth from new customers offsetting softness in off-road products [13] - The bike business is facing challenges due to labor issues and moderated OEM purchases, but new product launches are performing well [19] Company Strategy and Development Direction - The company is focused on strategic customer engagement and performance-defining innovation, with significant investments in product launches [9][32] - A cost reduction target of $25 million is on track for the fiscal year, with facility consolidations completed [11][28] - The second phase of optimization strategy is being prepared for 2026, focusing on maximizing efficiencies and improving balance sheet leverage [12][31] Management's Comments on Operating Environment and Future Outlook - Management noted an increasingly challenging macroeconomic environment, with elevated interest rates and a softening labor market impacting consumer spending [22][23] - The company is redoubling its focus on margin enhancement and prudent capital spending to drive free cash flow [23] - Despite challenges, management remains confident in the strategy to deliver premium performance products and the operational foundation for future growth [23][32] Other Important Information - The company has reduced total debt by $17.4 million year-to-date, maintaining a strong liquidity position [28] - Adjusted net income for Q3 was $9.9 million, or $0.23 per diluted share, down from $14.8 million, or $0.35 per diluted share in the prior year [27] Q&A Session Summary Question: Can you quantify the year-over-year revenue progression for SSG on the bike side? - Management indicated that the first half of 2025 had higher revenue due to new product launches, with a focus on retail inventory management for Q4 [34][35] Question: Can you quantify the impact of the aluminum supplier fire on Q4 revenue guidance? - Management acknowledged that the fire is a significant issue affecting both PVG and AAG, with expectations for resolution by mid-Q1 [42] Question: What are the expectations for growth in 2026 given the challenging macro environment? - Management emphasized the importance of delivering premium performance products and optimizing business operations to ensure profitability, despite external challenges [46]

THIRD QUARTER 2025 EARNINGS RESULTS November 6, 2025 Forward-Looking Statements This presentation contains statements that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, that are based on management's current expectations and assumptions and are subject to risks and uncertainties. Such statements include, but are not limited to, statements about (i) delays in ...

Core Insights - EverCommerce Inc. reported third quarter financial results for the period ending September 30, 2025, with revenue in line with guidance and Adjusted EBITDA exceeding expectations, driven by cost optimization efforts and the acquisition of ZyraTalk, enhancing its AI capabilities for service SMBs [3][9]. Financial Performance - Revenue for the third quarter was $147.5 million, a 5.3% increase from $140.1 million in the same quarter of 2024 [9]. - Subscription and transaction fees revenue was $142.2 million, up 4.3% from $136.3 million year-over-year [9]. - Net income from continuing operations was $5.8 million, or $0.03 per share, compared to a net loss of $9.1 million, or $(0.05) per share, in the prior year [9][31]. - Adjusted EBITDA for the quarter was $46.5 million, compared to $42.1 million in the same quarter of 2024 [9]. Share Repurchase Program - The Board of Directors approved a $50 million increase in the stock repurchase authorization, bringing the total to $300 million since the program's inception [4][5]. - During the third quarter, the company repurchased 2.6 million shares for approximately $29.1 million, leaving $22.3 million available under the repurchase program as of September 30, 2025 [5][6]. Business Outlook - For the fourth quarter of 2025, revenue is expected to be between $148 million and $152 million [8]. - Full-year revenue guidance is projected to be in the range of $584 million to $592 million, with Adjusted EBITDA expected between $174.5 million and $179.5 million [15]. Key Metrics - Pro Forma Revenue for the third quarter was $148.3 million, reflecting a 5.3% increase compared to $140.8 million in the same quarter of 2024 [9][36]. - Pro Forma Subscription and Transaction Fees Revenue was $143.1 million, a 4.4% increase from $137.0 million year-over-year [9][38]. Balance Sheet Highlights - As of September 30, 2025, total assets were $1.403 billion, a slight decrease from $1.421 billion at the end of 2024 [28]. - Total liabilities stood at $674.6 million, compared to $670.4 million at the end of 2024 [28]. - Stockholders' equity was $728.5 million, down from $750.8 million at the end of 2024 [29]. Cash Flow Analysis - Net cash provided by operating activities for the nine months ended September 30, 2025, was $90.2 million, compared to $64.8 million in the same period of 2024 [33]. - Cash used in investing activities totaled $56.5 million, primarily due to acquisitions and capitalized software costs [34]. - Cash used in financing activities was $62.3 million, which included stock repurchases and payments on long-term debt [34].

Core Insights - Karat Packaging Inc. reported record sales for the third quarter of 2025, achieving net sales of $124.5 million, a 10.4% increase from $112.8 million in the same quarter last year, driven by strong volume growth and a favorable product mix [4][7][8] - The company maintained a gross margin of 34.5%, despite rising import costs due to increased duties and tariffs, which accounted for 14.4% of net sales compared to 8.6% in the prior year [4][10] - Karat is diversifying its sourcing strategy, increasing domestic sourcing from 14.6% to 20.4% while reducing imports from Taiwan from 58.0% to 41.6% [5] Financial Performance - Net income for the third quarter was $7.6 million, down from $9.3 million in the prior-year quarter, resulting in a net income margin of 6.1% compared to 8.2% [8][13] - Adjusted EBITDA for the third quarter was $13.1 million, with an adjusted EBITDA margin of 10.5%, down from 13.0% in the prior-year quarter [14] - For the first nine months of 2025, net sales increased by 9.7% to $352.1 million, with net income rising 2.0% to $25.5 million [15][21] Business Developments - The company secured a major expansion to supply paper bags to a national chain, projected to add approximately $20 million in annual revenue, with full fulfillment expected by Q1 2026 [6] - Karat's business trends remain strong, with expectations for net sales in the fourth quarter to increase by 10% to 14% year-over-year [8] Cost Structure - Cost of goods sold for the third quarter increased by 17.8% to $81.6 million, primarily due to higher import costs and increased sales volume [9][16] - Operating expenses rose to $34.3 million, driven by higher shipping costs and rent expenses related to facility expansions [11][19] Guidance - The company is maintaining its full-year guidance for net sales, gross margin, and adjusted EBITDA margin, while closely monitoring potential impacts from tariff changes [8]

Financial Data and Key Metrics Changes - Total as-reported revenue grew 10% in the second quarter, with constant currency organic revenue growth of 9% driven by volume and a 210 basis points price increase [4] - Gross margin increased by 60 basis points to 44.3%, while EBIT margin rose 90 basis points to 23.1% of revenue, primarily due to operating expense leverage [4] - Adjusted earnings per diluted share from continuing operations were $2.47, reflecting a 15% increase year-over-year [5] - Free cash flow for the first half of fiscal 2026 was $527.7 million, indicating strong performance driven by increased earnings and improvements in working capital [6] Business Line Data and Key Metrics Changes - In the healthcare segment, constant currency organic revenue grew 9%, with services growing 13% and consumables increasing by 10% [7] - For AST, constant currency organic revenue grew 7%, with services up 13% but capital equipment revenue anticipated to decline [8] - Life sciences saw a 12% increase in constant currency organic revenue, driven by a 39% growth in capital equipment shipments [8] Market Data and Key Metrics Changes - The healthcare capital equipment backlog exceeded $400 million, with orders up 3% year-to-date [7] - Capital equipment backlog in life sciences increased over 50% to $114 million [8] Company Strategy and Development Direction - The company is increasing its revenue growth outlook to approximately 8%-9% for fiscal 2026, with constant currency organic revenue growth now expected to be 7%-8% [9] - The earnings outlook has been revised to a range of $10.15-$10.30, with EBIT margins expected to improve by 10-20 basis points [10] - Free cash flow outlook has been increased by $30 million to $850 million for fiscal 2026, indicating confidence in meeting revised expectations [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth trends, particularly in services, driven by stable volumes from medtech customers and recovery in bioprocessing [14] - The company acknowledged headwinds from tariffs and inflation, estimating a 90 basis point impact from tariffs and 130 basis points from material and labor inflation on margins [17] - Management noted that while there is some noise in customer volume due to manufacturing location shifts, the overall global footprint remains strong [14] Other Important Information - The company highlighted that the strong first half cash flow was due to improved working capital and faster collections [32] - Management indicated that the expansion of capacity in AST is a long-term process, taking two to three years from decision to operational status [38] Q&A Session Summary Question: What drove the second consecutive quarter of double-digit growth in AST services? - Management noted stable volume from medtech customers and recovery in bioprocessing as key drivers, with confidence in the 9%-10% outlook going forward [14] Question: Can you elaborate on the operating margins despite headwinds? - Management confirmed that tariffs and inflation were significant headwinds, with tariffs impacting margins by 90 basis points and material and labor inflation by 130 basis points [17] Question: What is the outlook for healthcare subsegments? - Management expects service growth to remain strong, with consumables performing well and capital equipment growth being a bit of a wild card due to timing [30] Question: How is the company addressing capacity constraints in AST? - Management stated that capacity expansion is a long process, with ongoing and planned expansions to meet demand [38] Question: What is the state of the single-use scopes trend? - Management indicated that while there is a place for single-use scopes, particularly small diameter ones, the bulk of the business remains with large diameter scopes [48]

Financial Data and Key Metrics Changes - Total as-reported revenue grew by 10% in the second quarter, with constant currency organic revenue increasing by 9% driven by volume and a 210 basis points price increase [4] - Gross margin increased by 60 basis points to 44.3%, while EBIT margin rose by 90 basis points to 23.1% of revenue compared to the previous year [4] - Adjusted earnings per diluted share from continuing operations were $2.47, reflecting a 15% increase year-over-year [5] - Free cash flow for the first half of fiscal 2026 was $527.7 million, indicating strong performance driven by increased earnings and improved working capital [6] Business Line Data and Key Metrics Changes - In the healthcare segment, constant currency organic revenue grew by 9%, with services growing by 13% and consumables by 10% [7] - The AST segment saw constant currency organic revenue growth of 7%, with services up by 13% but capital equipment revenue anticipated to decline [8] - Life sciences experienced a 12% increase in constant currency organic revenue, driven by a 39% growth in capital equipment shipments [8] Market Data and Key Metrics Changes - The healthcare capital equipment backlog exceeded $400 million, with orders up 3% year-to-date [7] - Capital equipment backlog in life sciences increased by over 50% to $114 million [8] Company Strategy and Development Direction - The company is increasing its revenue growth outlook to approximately 8%-9% for fiscal 2026, with constant currency organic revenue growth now expected to be 7%-8% [9] - The earnings outlook has been revised to a new range of $10.15-$10.30, with EBIT margins expected to improve by 10-20 basis points [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of service growth in the AST segment, citing stable volume from medtech customers and recovery in bioprocessing [14] - The company acknowledged headwinds from tariffs and inflation but noted that operating margins improved despite these challenges [15][16] - Management indicated that the healthcare service business is expected to see a slight slowdown in growth rates due to normalization of labor costs [21] Other Important Information - The company reported a pre-tax tariff impact of approximately $12 million, primarily affecting the healthcare segment [9] - Capital expenditures for the first half of fiscal 2026 totaled $180.1 million, with depreciation and amortization at $241.1 million [5] Q&A Session Summary Question: What drove the second consecutive quarter of double-digit growth in AST services? - Management noted stable volume from medtech customers and recovery in bioprocessing as key drivers, with confidence in the 9%-10% growth outlook going forward [14] Question: Can you elaborate on the operating margins despite headwinds? - Management indicated that tariffs represented a 90 basis point impact, while material and labor inflation accounted for about 130 basis points across the company [17] Question: What is the outlook for healthcare subsegments? - Management expects service growth to remain strong, with consumables performing well and capital equipment growth being a bit of a wild card due to timing [28] Question: How is the company addressing capacity constraints in AST? - Management stated that expanding capacity is a long process, taking two to three years, but they have been steadily bringing new capacity into the market [36] Question: What is the state of the single-use scopes trend? - Management acknowledged that while there is a place for single-use scopes, particularly in small-diameter applications, the bulk of their business remains in large-diameter scopes [46]