Financial Performance - The company's Q4 2024 consolidated revenue was $111 million, a decrease of approximately 3% year-over-year (YoY) compared to $115 million in Q4 2023[30, 31] - Full year 2024 consolidated revenue was $440 million, a decrease of approximately 10% YoY compared to $488 million in FY 2023[32, 33] - Healthcare Solutions (HSG) revenue in Q4 2024 was $40 million, a decrease of approximately 21% YoY compared to $51 million in Q4 2023[30, 31] - Healthcare Solutions (HSG) full year 2024 revenue was $190 million, a decrease of approximately 11% YoY compared to $213 million in FY 2023[32, 33] - Industrial Solutions (ISG) revenue in Q4 2024 was $71 million, an increase of approximately 11% YoY compared to $64 million in Q4 2023[30, 31] - Industrial Solutions (ISG) full year 2024 revenue was $250 million, a decrease of approximately 9% YoY compared to $275 million in FY 2023[32, 33] - The company's Non-GAAP Adjusted EBITDA for FY 2024 was a loss of $66.4 million, compared to a loss of $26.3 million in FY 2023[40, 62] - The company's Non-GAAP diluted loss per share for FY 2024 was $0.62, compared to a loss of $0.28 in FY 2023[40, 65] Strategic Initiatives and Outlook - The company expects to achieve over $50 million of annualized savings from Gross Margin (GM) and Operating Expense (OpEx) improvements over the next 6 quarters[9, 24] - The company anticipates revenues for FY 2025, normalized for divestiture, to range from essentially flat to modest growth[26, 47] - The company is targeting to exit 2025 with positive Adjusted EBITDA[26] - The company expects Non-GAAP operating expenses to be between $200 million and $220 million for FY 2025[47]

Core Viewpoint - FedEx has revised its full-year profit and revenue guidance downward, indicating ongoing struggles in its recovery and raising concerns for both the company and the broader U.S. economy [1][3]. Financial Performance - FedEx now expects adjusted earnings per share for fiscal 2025 to be between $18 and $18.60, down from a previous range of $19 to $20 and significantly below the original target of $20 to $22 [2]. - Revenue for the year ending in May is expected to be flat or slightly down year over year, a downgrade from earlier forecasts that anticipated flat revenue [2][10]. - In the fiscal third quarter, adjusted earnings were reported at $4.51 per share, an increase from $3.86 in the same quarter last year, although it fell slightly below analysts' expectations [8]. Economic Context - The company is facing challenges due to continued weakness in the U.S. industrial economy, which is impacting demand for its business-to-business services [4][10]. - The industrial economy is crucial for FedEx's high-volume shipments, but it has been struggling while e-commerce demand, which is lower-margin, continues to dominate [5][10]. - External factors such as proposed tariffs and fears of a trade war are adding to the uncertainty, potentially affecting U.S. manufacturers and shipping demand [7][10]. Strategic Initiatives - FedEx is actively pursuing a stock buyback program, having repurchased $500 million worth of shares in the latest quarter, bringing the year-to-date total to $2.5 billion, signaling management's confidence in its long-term transformation plan [9]. - The company aims to achieve permanent cost reductions of $2.2 billion in fiscal 2025 to bolster profitability in the coming years [10]. Market Implications - FedEx's struggles may serve as a bellwether for the overall U.S. economy, with its performance potentially indicating broader economic trends [11].

Financial Data and Key Metrics Changes - For the full year of 2024, the company generated net sales of $101,500,000, representing a 21% increase over net sales of $83,600,000 for 2023 [5][22] - Gross margin for the full year 2024 was 17%, an improvement from 10% in 2023 [23] - Adjusted EBITDA for the full year of 2024 was a positive $5,200,000, representing a $9,000,000 improvement over a negative adjusted EBITDA of $3,900,000 in 2023 [25] Business Line Data and Key Metrics Changes - Net product sales for the full year 2024 were $101,400,000, a 27% increase over 2023, driven by new customers from the Evoqua acquisition and a large order from the largest customer [22] - Gross profit for Q4 2024 was $3,600,000, a 27% increase over Q4 2023 [23] Market Data and Key Metrics Changes - The company has expanded its international sales, currently selling products in over 30 countries [17] - The single-use bicarbonate disposables market represents an approximate $100,000,000 opportunity, one of the fastest-growing segments within the dialysis products market [18] Company Strategy and Development Direction - The company aims to diversify its customer base and product portfolio while optimizing its business operations [10][72] - Plans for 2025 include targeting additional customers representing an estimated 14,500,000 gallons of potential business [20] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a transition year but aims to return to growth within the same year [36] - The transition away from the largest customer is expected to result in a loss of approximately $34,000,000 in revenue compared to 2024 [8] Other Important Information - The company terminated its agreement with a third-party contract manufacturer, which will save over $2,000,000 annually in fixed overhead costs [9][24] - Cash, cash equivalents, and investments at the end of 2024 were $21,600,000, an increase from $10,900,000 at the end of 2023 [26] Q&A Session Summary Question: Revenue from the largest customer in 2025 - The largest customer historically generated around $45,000,000, and with the expected transition, a loss of $34,000,000 is anticipated, leading to a revenue estimate of approximately $11,000,000 from this customer in 2025 [30][31] Question: Discussions with the largest customer - The transition is to diversify their supplier base, and discussions are ongoing regarding future volume commitments, which are not included in the current guidance [32][33] Question: Transition year and expense reductions - 2025 is viewed as a transition year, with plans to return to growth, and expense reductions will be implemented to align with the expected decline in volume [34][35] Question: Factors leading to the largest customer's decision - The decision to pivot away was made prior to the current management's arrival, and there are no current issues with other customers [44][46] Question: Growth strategy for the bicarbonate cartridge business - The strategy involves introducing the product to the existing customer base, with expectations for growth as customers switch to compatible machines [48][49] Question: Guidance and revenue offset strategies - The guidance for 2025 assumes the largest customer will transition away completely, and any successful negotiations would be considered upside to the guidance [54][56]

Financial Data and Key Metrics Changes - For the full year 2024, the company achieved $3.6 billion in funded loan volume, $108 million in revenue, and an adjusted EBITDA loss of $121 million, with a year-over-year revenue growth of 50% and a 19% increase in funded loan volume [8][9] - In Q4 2024, funded loan volume was $936 million, representing a 77% year-over-year increase, although it decreased approximately 10% sequentially due to seasonal factors [8][11] - The adjusted EBITDA loss in Q4 was $28 million, with total GAAP net loss around $59 million [46][47] Business Line Data and Key Metrics Changes - Funded loan volume growth in Q4 was driven by home equity products and refinance loans, with purchase loan volume increasing by 25% and refinance loan volume surging by 611% year-over-year [10][11] - The company reported a gain on sale margin improvement from 1.95% in 2023 to 2.17% in 2024, indicating enhanced revenue per loan through pricing and marketing optimization [9][10] Market Data and Key Metrics Changes - The overall HELOC and HELOAN originations increased by 10% in the third quarter, while the company’s origination volume grew by 619%, indicating significant market outperformance [10] - The mortgage market saw improvements in Q4 compared to the same period in 2023, but 30-year fixed mortgage rates remained high, impacting mortgage demand [11] Company Strategy and Development Direction - The company aims to leverage AI and technology to enhance operational efficiency, reduce costs, and improve customer experience, with a focus on achieving profitability in the medium term [6][8][45] - The strategic priorities include continuing to grow the business, diversifying distribution channels, and enhancing the technology platform to streamline the mortgage process [8][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by low housing affordability and high mortgage rates but expressed optimism about the company's growth trajectory and market share gains [8][11] - The outlook for 2025 anticipates funded loan volume growth in the low to mid double digits, driven by initiatives like Neo powered by Better, despite macroeconomic headwinds [49][50] Other Important Information - The company is winding down its UK businesses, which contributed to lower volume in Q4, and expects to fully exit this segment by Q2 2025 [34][48] - The introduction of Betsy, an AI voice-based loan assistant, has significantly improved customer interaction efficiency, with a 20x increase in customer interactions since its launch [14][27] Q&A Session Summary Question: How does the AI technology adjust for high property insurance costs? - Management explained that their AI system integrates multiple data sources to provide instant homeowners insurance quotes during the loan process, significantly reducing the need for manual intervention [54] Question: How does profitability affect risk-taking? - Management clarified that they operate a marketplace model, ensuring loans are pre-committed to investors before origination, thus minimizing risk while focusing on efficiency and cost reduction to achieve profitability [58][62] Question: Can you elaborate on savings opportunities from Tin Man's AI application? - Management highlighted that AI-driven processes have reduced operational costs significantly, with potential savings of $2,000 per funded loan and $1,400 for AI-underwritten loans, contributing to improved margins [72][73] Question: How are gain on sale margins trending in Q1? - Management reported that gain on sale margins are trending higher in Q1, particularly with Neo loans performing better than the direct-to-consumer business, indicating improved efficiency and customer conversion [80][82] Question: Can you contextualize contribution profit per loan? - Management indicated that contribution margins have been improving, and they are focused on reducing costs in the mortgage business to enhance profitability while maintaining a balance with corporate cost reductions [93][94]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $10.2 million, down 23% from $13.3 million in Q4 2023 [35] - Full year 2024 net sales were $43.4 million, a decrease of 40% compared to $72.6 million in 2023 [35] - Gross margin for Q4 2024 was 44.2%, down from 48% in the prior year [42] - Full year gross margin was 49.5%, compared to 52.9% in 2023 [42] - Net loss for Q4 2024 was $8 million, or $0.79 per diluted share, compared to a net loss of $62,000, or $0.01 per share in the year-ago period [55] - Full year net loss was $9.9 million, or $0.99 per diluted share, compared to net income of $4.7 million, or $0.47 per diluted share in 2023 [55] Business Line Data and Key Metrics Changes - Food Service Technology (FST) revenue for Q4 was $4.3 million, approximately flat sequentially but down 9% year-over-year [36] - Full year FST revenue was $16.1 million, down 1% from $16.3 million in 2023 [36] - Casino and gaming revenue for Q4 was $4.8 million, up 14% year-over-year [38] - Full year casino and gaming sales were $20.3 million, down 51% year-over-year [38] - POS automation sales for Q4 decreased 74% year-over-year to $411,000 [39] - TransAct Services Group (TSG) sales for Q4 were $759,000, down 73% from $2.8 million in the prior year [41] Market Data and Key Metrics Changes - The company noted a recovery in the casino and gaming market, with all major domestic OEM partners back in buying positions [19][70] - The international side of the casino and gaming market is expected to strengthen, with some OEMs still working through inventory but anticipated to return to buying in the latter half of 2025 [71] Company Strategy and Development Direction - The company is focused on maximizing shareholder value through a strategic review process initiated in Q4 2023 [26] - The management team is considering all options to enhance shareholder value, indicating a proactive approach to potential partnerships or strategic events [26][29] - The company aims to continue improving its go-to-market strategies and internal sales motions to drive growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum in terminal placements, expecting continued upward trends throughout 2025 [10] - The company anticipates total revenue for 2025 to be between $47 million and $52 million, with adjusted EBITDA expected to range from breakeven to a negative $2 million [30] - Management acknowledged the complexities of operating two distinct business lines and the challenges in evaluating their respective market opportunities [79] Other Important Information - The company completed the rollout of the Epic TR80 thermal roll printer, which is expected to fuel additional sales in the casino and gaming sector [20] - The company has a solid balance sheet, finishing the year with $14.4 million in cash, up from $2.1 million at the end of 2023 [57] - The credit facility was successfully renewed, providing sufficient liquidity for at least the next twelve months [58] Q&A Session Summary Question: Contribution of large QSR customer to terminal installations - Management indicated that the large QSR customer contributed a significant portion of terminal installations, but not more than half [63] Question: Outlook for 2025 and new client contributions - Management expects contributions from new clients and expansion with existing customers, including the large QSR [66] Question: Growth expectations for casino and gaming segment - Management confirmed expectations for growth in the casino and gaming segment in 2025, with all domestic OEMs back to buying [70] Question: Revenue impact from exiting C-store customer - Management disclosed that the exiting C-store customer represented about $3 to $4 million in annualized revenue, with half of that impacting 2024 [75] Question: Complexity of strategic review process - Management explained that the complexity arises from operating two different businesses and the need for detailed evaluations of each [79] Question: Market opportunity for Epic TR80 - Management highlighted the large and growing market potential for the Epic TR80, particularly in the sports betting sector [84]

Financial Data and Key Metrics Changes - Revenues increased by 13.6% in Q4 2024 compared to Q4 2023, reaching $243.3 million from $214.1 million [8][20] - Net loss for Q4 2024 was $6 million, or $0.07 per diluted share, an improvement from a net loss of $14.8 million, or $0.18 per diluted share, in Q4 2023 [20] - Adjusted EBITDA for Q4 2024 was a loss of $5.4 million, compared to a loss of $16.1 million in Q4 2023 [20] - For the full year 2024, revenues were $995.6 million, up from $955.6 million in 2023 [21] - Net loss for the year was $76.3 million, or $0.91 per diluted share, compared to $42.6 million, or $0.52 per diluted share, in 2023 [22] - Adjusted EBITDA for the year was a loss of $17.8 million, an improvement from a loss of $39.9 million in 2023 [22] Business Line Data and Key Metrics Changes - Average price per transaction rose to $1.64 million in Q4 2024 from $1.58 million in Q4 2023, and for the year, it was $1.67 million compared to $1.59 million in 2023 [14] - Development marketing revenue increased significantly to $25.5 million in Q4 2024 from $9.5 million in Q4 2023 [16] - The development marketing division has a pipeline of approximately $27.7 million in gross transaction value, with $18.1 billion in Florida alone [15] Market Data and Key Metrics Changes - The company was ranked as the most trusted real estate brokerage in 2025 by Life Story Research, highlighting the strength of the Elliman brand [9] - The company achieved record sales in key markets such as Aspen, North Miami, and Long Island [17] Company Strategy and Development Direction - The company is focused on expanding its revenue base through growth initiatives, including recruiting and international expansion, while also reducing costs [10] - A newly created strategic M&A and business development unit is exploring complementary acquisitions and investments [10] - The company aims to diversify revenue streams and drive innovation and technology within the industry [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improvement of financial results and the positioning of the company for long-term success [13] - The CEO emphasized the strength of the Douglas Elliman brand and its bright future, indicating that the best days are ahead for the company [23] Other Important Information - Cash and cash equivalents as of December 31, 2024, were approximately $135 million, with total liquidity of about $145 million [18] - The company reduced operating expenses by $19.7 million in 2024 compared to 2023, excluding certain costs [18] Q&A Session Summary Question: What are the expectations for future growth? - Management indicated that the company is performing well and is optimistic about future growth prospects [23] Question: How is the company managing its expenses? - The company has implemented expense reductions and is focusing on return on investments across its markets [17]

Financial Data and Key Metrics Changes - For Q4 2024, APA Corporation reported consolidated net income of $354 million or $0.96 per diluted share, with adjusted net income of $290 million or $0.79 per share [30][31] - The company generated $420 million of free cash flow in Q4 2024, the highest for any quarter in 2024, and returned 46% of this amount to shareholders [32][33] - For the full year 2024, APA generated $841 million in free cash flow, returning 71% to shareholders [33][34] Business Line Data and Key Metrics Changes - In the Permian Basin, APA's US business now comprises almost entirely unconventional assets, driving over 75% of current adjusted production [13][14] - The company achieved a breakeven oil price of $61 per barrel in 2024, down from Cowen's 2023 breakeven of $78 per barrel [21] - In Egypt, the company improved its production profile through water flood activities, leading to a more predictable oil production profile [14] Market Data and Key Metrics Changes - APA's average realized gas price is expected to increase from $2.96 per Mcf in Q4 2024 to at least $3.15 per Mcf in Q1 2025, with a full-year average expected in the $3.40 to $3.50 range [40] - The company anticipates generating a combined net gain of $600 million for 2025 from gas trading activities [44][109] Company Strategy and Development Direction - APA Corporation is focused on enhancing the quality and sustainability of its portfolio, particularly in the Permian Basin and Egypt, while also pursuing a differentiated exploration strategy [11][12] - The company plans to run an eight-rig program in the Permian and a twelve-rig program in Egypt for 2025, with a total capital budget of $2.5 to $2.6 billion [24][25] - Cost reduction initiatives are expected to generate at least $350 million in annualized savings by year-end 2027 [27][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability and predictability of production from the Permian and Egypt, with a focus on cost structure improvements [56][58] - The company aims to achieve BBB or better ratings from credit agencies, reflecting its strengthened balance sheet [34] - Management highlighted the importance of the gas program in Egypt, expecting year-over-year gas production growth for the first time in over a decade [39][92] Other Important Information - APA Corporation achieved a BBB- rating from S&P, marking its investment-grade status with all three rating agencies [13][34] - The company closed the sale of non-core conventional properties in the Permian Basin on December 31, 2024 [18] Q&A Session Summary Question: Concerns about share performance despite strong cash flow - Management acknowledged the concerns and emphasized the transformation of their asset base, focusing on cost structure and sustainable inventory [55][56] Question: Share buybacks versus debt repayment - Management stated that they are working on both share buybacks and debt repayment, believing in the value of their shares [62][63] Question: Update on Alaska exploration - Operations in Alaska are progressing well, with no comments on pay zones yet, but management is optimistic about the results [68][69] Question: Productivity in Howard County - Management reported fantastic results in Howard County and plans to return for tighter well spacing [72][73] Question: Balancing rig activity between oil and gas in Egypt - Management indicated a strong start in gas drilling and plans to potentially shift more rigs to gas as results improve [92][94] Question: Receivable situation in Egypt - Management noted that past due balances have remained stable, with expectations for progress in 2025 [102][104] Question: Breakdown of gas trading revenue - Management provided a breakdown of expected gas trading revenue, with significant contributions from both pipeline trading and LNG contracts [108][109] Question: Structural changes in cost-cutting initiatives - Management detailed their approach to cost savings, emphasizing capital, LOE, and G&A as key areas for improvement [114][115]

Financial Data and Key Metrics Changes - For Q4 2024, APA reported consolidated net income of $354 million or $0.96 per diluted share, with adjusted net income of $290 million or $0.79 per share [19][20] - The company generated $420 million of free cash flow in Q4 2024, the highest for any quarter in 2024, and returned 46% of this amount to shareholders [21] - For the full year 2024, APA generated $841 million in free cash flow, returning 71% to shareholders [21][22] Business Line Data and Key Metrics Changes - In the Permian Basin, APA's U.S. business is now almost entirely comprised of unconventional assets, driving over 75% of current adjusted production [7][8] - The company achieved a breakeven oil price of $61 per barrel in 2024, down from Cowen's 2023 breakeven of $78 per barrel [13] - In Egypt, APA returned to normalized workover and recompletion backlogs, improving oil production profiles [9] Market Data and Key Metrics Changes - The average realized gas price is expected to increase from $2.96 per Mcf in Q4 2024 to at least $3.15 per Mcf in Q1 2025, with a full-year average expected in the $3.4 to $3.5 range [27] - The company anticipates generating a combined net gain of $600 million for 2025 from gas trading activities [30][78] Company Strategy and Development Direction - APA's strategy includes enhancing the quality and sustainability of its portfolio in the Permian Basin and Egypt while building long-term optionality through exploration [6][18] - The company plans to run an eight-rig program in the Permian and a 12-rig program in Egypt for 2025, with a total capital budget of $2.5 billion to $2.6 billion [14][15] - Cost reduction initiatives are expected to generate at least $350 million in annualized savings by the end of 2027 [17][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cost reduction targets and emphasized the importance of a sustainable and predictable production profile [38][39] - The company aims to reduce controllable spend to drive free cash flow growth from 2025 to 2027, ahead of Suriname's first oil in 2028 [18][34] Other Important Information - APA achieved a BBB- rating from S&P, marking it as investment grade with all three rating agencies [7][22] - The company closed the sale of non-core conventional properties in the Permian Basin on December 31, 2024 [12] Q&A Session Summary Question: Concerns about share performance despite strong cash flow - Management acknowledged the concerns and highlighted the transformation of their asset base, emphasizing cost structure improvements and sustainable inventory [36][37] Question: Share buybacks versus debt repayment - Management stated that they are working on both share buybacks and debt repayment, believing in the value of their asset base [40][41] Question: Update on Alaska exploration - Operations in Alaska are progressing well, with no comments on pay zones yet, but management is optimistic about the results [49][50] Question: Permian productivity and guidance - Management noted improved productivity in Howard County and clarified that 2025 guidance reflects a sustainable production base with eight rigs [56][63] Question: Balancing rig activity between oil and gas in Egypt - Management indicated a strong start in gas drilling and plans to potentially shift more rigs to gas as results improve [66][68] Question: Receivable situation in Egypt - Management reported that past due balances have remained stable, with expectations for progress in 2025 [74][75] Question: Breakdown of gas trading revenue - Management provided a breakdown of expected gas trading revenue for 2025, with significant contributions from both pipeline trading and LNG contracts [78] Question: Cost-cutting initiatives and organizational changes - Management detailed their approach to cost savings, emphasizing a structured plan to achieve targets over three years [82][86] Question: Inventory duration in the Permian - Management expressed confidence in sustaining inventory through 2029, with ongoing efforts to characterize Cowen assets [89][92]

Core Viewpoint - Freeport-McMoRan Inc's shares are experiencing an increase due to an upgrade from Jefferies, which raised its rating from "hold" to "buy" and increased the price target to $48 from $40, driven by improving free cash flow and cost reductions [1] Group 1 - Jefferies upgraded Freeport-McMoRan's rating and price target, indicating positive future growth prospects for the copper producer [1] - Ten out of eighteen analysts still rate Freeport-McMoRan as a "hold," suggesting potential for further upgrades in the future [2] - Options traders are showing bullish sentiment, with a put/call open interest ratio of 0.4, indicating strong short-term call-buying activity [2] Group 2 - Freeport-McMoRan stock is set to open above its 60-day moving average, a significant long-term resistance level, after recovering from a low of $34.89 [3] - The stock remains just below breakeven on both a year-to-date and year-over-year basis, indicating a challenging performance in the broader market context [3]

Financial Data and Key Metrics Changes - Hanesbrands reported a 4% year-over-year growth in sales for the fourth quarter, with net sales increasing 4.5% to $888 million [34][14] - Gross margin improved by 580 basis points to 41.4%, while operating margin expanded by 390 basis points to 11.8% [14][15] - Earnings per share (EPS) increased by 670% [15] - The company paid down over $1 billion in debt, reducing leverage by nearly 2 turns [15][40] Business Line Data and Key Metrics Changes - In the U.S., net sales increased by 3% year-over-year, driven by innovation and increased brand investments [34][35] - The International segment saw a 6% increase in net sales on a constant currency basis, with growth in each region [35] - The Champion Japan business has been reclassified to discontinued operations, affecting comparability with previous guidance [4][5] Market Data and Key Metrics Changes - The Australian business experienced growth driven by better inventory management and strong innovation [35][106] - The company noted no significant shifts in ordering patterns among major retail accounts, maintaining strong relationships across channels [78][123] Company Strategy and Development Direction - Hanesbrands is transitioning from a global holding company to a global operating company, focusing on consumer-centric innovation and streamlined operations [16][18] - The company aims to expand margins to over 15% and generate more than $400 million in annual operating cash flow [21][23] - The strategy includes leveraging competitive strengths and focusing on new revenue streams, particularly in the Printwear channel [22][111] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive organic constant currency sales growth in 2025, despite a challenging consumer environment [50][51] - The company anticipates further margin expansion in 2025, driven by cost savings and improved operational efficiencies [22][39] - Management highlighted a strong foundation and momentum entering 2025, with a commitment to shareholder value creation [13][24] Other Important Information - The company has initiated a leadership succession plan, with the current CEO planning to step down after five years [24][66] - Management emphasized the importance of transparency during the transition and the strength of the current leadership team [66][67] Q&A Session Summary Question: Confidence in driving positive sales in 2025 and revenue opportunities - Management expressed confidence in achieving 1% organic constant currency growth, supported by innovation and brand investments [50][51] Question: Visibility and control over future margin expansion - Management indicated strong visibility to cost and savings, expecting another step up in operating margins in 2025 [54][59] Question: Elimination of stranded costs associated with Champion - Management stated that stranded costs would be largely eliminated by the end of 2025, contributing to margin expansion [72][73] Question: Guidance breakdown for U.S. vs. international business - Management expects flat growth in the U.S. and low-single-digit growth internationally, with no major shifts in ordering patterns [77][78] Question: Gross margin cadence throughout the year - Management anticipates a stronger gross margin in the first half of the year, with some stabilization expected in the back half [81][84] Question: Cash flow build for the year - Management outlined factors contributing to the expected $350 million in operating cash flow, including profit growth and lower cash interest [95][100] Question: International revenue outlook and inventory position - Management clarified that growth in Australia is driven by volume rather than inventory fill, with a focus on consumer engagement and innovation [105][106] Question: Impact of potential retaliatory tariffs on sales into Mexico and Canada - Management confirmed no impact from tariffs, as products are not sold from the U.S. into those countries [115][117] Question: Consumer trends and channel shifts - Management noted that the business follows macro channel trends closely, with strong relationships across various retail channels [123]