Financial Data and Key Metrics Changes - In Q2 2025, global system-wide restaurant sales reached $1.26 billion, reflecting a 4% increase in constant currency [30] - North America comparable sales increased by 1%, with transaction comps also growing by 1% [31] - Total revenues for Q2 were $529 million, up 4%, driven by higher commissary revenues [33] - Consolidated adjusted EBITDA declined modestly to approximately $53 million, impacted by increased loyalty and marketing investments [34] Business Line Data and Key Metrics Changes - North America business returned to positive comparable sales, ending the quarter up 1% [9] - International comparable sales increased by 4%, indicating successful transformation initiatives [33] - The number of pizzas ordered in North America increased by 6%, demonstrating effective product focus and value messaging [11] Market Data and Key Metrics Changes - The company experienced sequential improvement across several key international markets, driving 4% comparable sales growth in Q2 [9] - The carryout business showed strong performance in Q2 but started softer in the third quarter, indicating a cautious consumer environment [55][62] Company Strategy and Development Direction - The company is focused on five strategic priorities: improving core product innovation, amplifying marketing messages, investing in technology infrastructure, differentiating customer experience, and evolving the franchisee base [8][26] - A significant emphasis is placed on enhancing the loyalty program and leveraging consumer insights to drive customer engagement [21][22] - The company plans to optimize its supply chain to achieve over $50 million in total cost savings, with approximately 40% expected to be realized by 2026 [27][79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's path towards profitable growth, citing improved brand strength and strategic investments [6] - The outlook for North America comparable sales remains flat to up 2% for 2025, with expectations for acceleration in the latter half of the year [37] - Internationally, the company raised its 2025 comparable sales growth outlook to a range of 2% to 4% due to operational strength in priority markets [38] Other Important Information - The company is in the process of selling its ownership stake in a joint venture operating 85 restaurants, expected to close by Q4 2025 [26][39] - The company has added approximately 2.7 million new loyalty accounts since the relaunch of its rewards program [21] Q&A Session Summary Question: Insights on regional marketing efforts and frequency trends - Management indicated that they are testing local marketing strategies to enhance returns and support franchisees in key markets [49] Question: North America comps exceeding expectations - Management attributed the positive results to a combination of transaction growth, product innovation, and effective use of the loyalty program [52][54] Question: Four wall economics and supply chain optimization - Management acknowledged the need for continued improvement in margins and highlighted ongoing supply chain optimization efforts to achieve significant savings [59][63] Question: Refranchising transaction details - The transaction involves selling to an existing franchisee in the Mid Atlantic area, with development commitments attached to future agreements [84][88]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $105.5 million, up from $86 million in the prior year quarter, reflecting strong year-over-year growth [18] - Adjusted EBITDA increased by 59.5% to $24.4 million compared to $15.3 million in the prior year, resulting in an adjusted EBITDA margin of approximately 23.1% [19][20] - Reported organic revenue was up 0.4% year-over-year, but on a pro forma basis, organic growth would have been approximately 5% [18][19] Business Line Data and Key Metrics Changes - The connections business drove growth, while event mix and softness in content impacted overall performance [18][19] - Acquisitions contributed significantly, adding $24 million in revenue for the quarter, with expectations for continued contributions in the second half of the year [44] Market Data and Key Metrics Changes - International exhibitors accounted for approximately 10% of total revenue, with 99% of the full year international revenue target already secured [11][12] - Encouraging activity was noted in markets like Italy, Germany, and Brazil, helping to offset softness in China and Canada [12] Company Strategy and Development Direction - The company is focused on customer centricity, year-round engagement, and portfolio optimization, with targeted acquisitions in high-growth verticals [14] - Recent acquisitions, such as This Is Beyond and InsurTech Insights, are advancing strategic priorities and contributing to growth [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of live events, emphasizing their importance in driving measurable impact and trust [13] - The company reaffirmed its full-year guidance of $450 million to $460 million in revenue and $120 million to $125 million in adjusted EBITDA [25][26] Other Important Information - The company repurchased approximately 1.6 million shares for $6.9 million under its buyback program, demonstrating management's conviction in long-term value [23][24] - A quarterly dividend of $0.15 per share was declared, reflecting a commitment to shareholder returns [25] Q&A Session Summary Question: Will the third quarter see a decline in organic growth year-over-year? - Management confirmed that the third quarter is expected to show negative organic growth due to event mix and construction impacts at the Las Vegas Convention Center [30] Question: What is the expected contribution from recent acquisitions for the remainder of the year? - Management indicated that both This Is Beyond and InsurTech Insights have events scheduled in the second half of the year, contributing to revenue [34] Question: How significant is the macroeconomic impact on the business? - Management characterized the macroeconomic impact as small overall, with some headwinds in specific regions but positive performance in others [36][37] Question: Can you provide details on the GRC World acquisition? - Management confirmed that GRC World is a smaller acquisition focused on global risk and compliance, included for pro forma comparisons [42][43] Question: What is the current booking status for 2025 and 2026? - Management stated that 90% of revenue for 2025 is booked, with positive rebooking rates for 2026, indicating strong customer confidence [46]

Financial Data and Key Metrics Changes - In 2024, the company achieved a net income of BRL2.2 billion, exceeding the guidance of BRL1.9 billion, despite macroeconomic challenges and over BRL100 million negative impacts from accounting changes [10] - Adjusted net income grew 18% year over year, with adjusted basic EPS increasing by 26% compared to Q4 2023 [12] - Adjusted administrative expenses were BRL994 million, lower than the guidance of BRL1.125 billion, reflecting ongoing efficiency improvements [10][12] Business Line Data and Key Metrics Changes - The MSMB car TPV reached BRL403 billion, a 15% year-over-year growth, while total MSMB TPV exceeded expectations at BRL454 billion, a 22% increase [6][10] - The MSNB take rate was 2.55%, surpassing the guidance of 2.49%, driven by disciplined pricing and increased contributions from banking and credit solutions [8][10] - The credit portfolio grew to BRL1.2 billion, significantly exceeding the target of BRL800 million, with non-performing loans over ninety days remaining controlled at 3.61% [9][20] Market Data and Key Metrics Changes - The active client base for MSMB payments increased by 19% year over year to 4.1 million clients, with a notable acceleration in client additions [15] - Retail deposits reached BRL8.7 billion, exceeding the guidance of BRL7 billion, reflecting strong performance in bundled payments and banking offerings [7][18] - The banking active client base grew by 46% year over year to 3.1 million, outpacing the payments client base growth [18] Company Strategy and Development Direction - The company aims to establish Stone accounts as the primary financial hub for clients, focusing on enhancing the value proposition through a comprehensive ecosystem beyond payments [8] - Key initiatives for 2025 include investment products and workflow tools to accelerate deposit growth [8] - The company is committed to maximizing long-term intrinsic business value growth, emphasizing disciplined execution and prudent capital allocation [40] Management Comments on Operating Environment and Future Outlook - Management acknowledged potential macroeconomic challenges but expressed confidence in delivering sustainable long-term value creation [40] - The company plans to continue outpacing market growth and expanding its share in the MSMB payments market [6] - Management highlighted the importance of evolving client engagement and the successful execution of strategic priorities [5][10] Other Important Information - The company recognized a goodwill impairment charge of BRL3.6 billion for the software cash-generating units, which is a non-cash accounting adjustment [27] - The adjusted net cash position was BRL4.7 billion at quarter end, reflecting ongoing share repurchase activity [32] - The company expects to return excess capital to shareholders over time when value-accretive growth opportunities are not immediately available [35] Q&A Session Summary Question: Performance of banking solutions and room for improvement - Management noted that deposits are growing ahead of TPV due to successful bundling of payments and banking solutions, with expectations for continued growth as more solutions are developed [45][46] Question: View on dividends and capital structure - Management emphasized a commitment to returning capital to shareholders through share buybacks, with no specific targets for dividends at this time [50][51] Question: Pricing strategy and impact - Management confirmed that a substantial repricing initiative was implemented at the beginning of Q1 2025, with expectations for effective adjustments across the client base [58][61] Question: Guidance on basic vs. diluted EPS - Management explained the decision to guide basic EPS due to accounting volatility and the potential for double counting with share-based compensation [62][64] Question: Potential sale of software business - Management stated that no offers met the intrinsic value for the software assets, and they will focus on maximizing value through cross-selling financial services [75][76]

Financial Data and Key Metrics Changes - Total revenue for 2024 was $9 billion, a decline of 3.1% year over year, an improvement from prior year declines [27] - Adjusted EBITDA for 2024 was $3.4 billion, down 5.4% year over year, with a normalized adjusted EBITDA margin of 38.7% [28][29] - Free cash flow grew by 23% year over year to $149 million despite increased cash interest [31] Business Line Data and Key Metrics Changes - Mobile service revenue grew by 52%, while residential revenue declined by 4.6% [27] - Fiber net additions reached 57,000 in Q4, a 22% increase year over year, with mobile line net additions of 40,000, the best performance in five years [8] - LightPath's revenue grew to $414 million, a 5.5% increase year over year, driven by footprint expansion and increased net bookings [32] Market Data and Key Metrics Changes - Broadband subscriber net losses were 39,000 in Q4, influenced by external factors such as hurricanes and low home sales [9] - Churn improved year over year in the East footprint, while the West faced challenges from increased competition [10] - The West market has seen a 45% overbuild, while the East remains around 70% [41] Company Strategy and Development Direction - The company is focused on a Phase two transformation aimed at business acceleration and maximizing customer value [8] - Plans include expanding fiber networks, enhancing customer experience, and launching new income-constrained programs [10][18] - The company aims to achieve a gross margin target of 70% by 2026 [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to compete effectively in both East and West markets despite competitive pressures [42] - The company anticipates continued improvements in EBITDA trends and free cash flow growth in 2025 [52][75] - Management highlighted the importance of customer-centric strategies and the need for flexibility in pricing and offerings [80][94] Other Important Information - The company reduced capital expenditures to $1.4 billion in 2024, a 16% improvement year over year [29] - The total footprint grew by over 2%, adding 210,000 passings, with a focus on fiber expansion [14][36] - The company has a strong liquidity position with approximately $1 billion in undrawn revolver capacity [37] Q&A Session Summary Question: Can you discuss broadband performance in different regions and the competitive environment? - Management noted increased competition in the West, with a 45% overbuild, and emphasized improvements in the East due to better go-to-market strategies [41][42] Question: Can you elaborate on the pressure on EBITDA in Q4? - Management acknowledged one-time costs related to storms and transformation efforts but expressed optimism about future EBITDA stabilization [49][52] Question: What are the plans for improving the capital structure? - Management is actively exploring options to address debt maturity profiles while focusing on operational and financial metrics [56][58] Question: How do you expect CapEx to trend after 2025? - Management indicated that while they expect to maintain a capital target of $1.3 billion, they are optimistic about driving efficiency [60][61] Question: Can you comment on the competitive dynamics in the West and East? - Management highlighted the need for tailored strategies in the West due to low pricing from competitors and emphasized the importance of customer-centric approaches [92][94]