Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $796 million, a decrease of 7.8% year-over-year, with a 4.1% decline when excluding foreign exchange impacts and contract manufacturing agreements from the previous year [7][19] - Adjusted EBITDA was $103 million, representing a margin of 12.9%, which is a decline of 260 basis points year-over-year [7][24] - Adjusted earnings per diluted share were $0.94, excluding non-operating items [8][20] - The net leverage ratio was 1.4 times, approaching the target of 1.5 times, with total liquidity around $900 million [8] Business Line Data and Key Metrics Changes - Aftermarket segment sales decreased by 3.9% year-over-year, primarily due to lower OEM sales [19] - Fuel Systems segment sales were down 10.2%, or 7.3% when excluding prior year contract manufacturing sales, attributed to lower OE sales across all regions [20] - Total segment adjusted operating margins were 12.2%, a decrease of 140 basis points year-over-year [8][21] Market Data and Key Metrics Changes - The macroeconomic environment in the automotive industry showed signs of slowing, similar to the second half of 2024 [6] - The company noted that over 60% of sales are generated outside of North America, which may mitigate some impacts from U.S. tariffs [27] Company Strategy and Development Direction - The company is focused on long-term profitable growth through capital investments, share repurchases, and dividends [12] - There is a commitment to expanding product offerings and deepening customer relationships, with a focus on new product development [9][12] - The company aims to navigate the current macroeconomic challenges while maintaining a strong balance sheet and pursuing accretive M&A opportunities [17][53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to manage near-term uncertainties while continuing to invest in the business [16][30] - The company anticipates that the commercial vehicle market will remain soft, with no significant pre-buy expected in the second half of the year [36][94] - Management reaffirmed the 2025 guidance despite headwinds from tariffs and market uncertainties, expecting to pass through tariff costs to customers [27][73] Other Important Information - The company returned $111 million to shareholders through share buybacks and dividends in Q1 2025 [8] - The company has $264 million remaining under its current share repurchase authorization [13] Q&A Session Summary Question: What is the exposure to tariffs on USMCA compliant and non-USMCA compliant products? - Management indicated that over half of the North American business is USMCA compliant, positioning the company well to manage tariff impacts [33] Question: How has the commercial vehicle OE market changed recently? - Management acknowledged a softening in the commercial vehicle market and noted that they do not expect a pre-buy effect in the second half of the year [36] Question: How is the company addressing foreign exchange impacts? - Management noted that the FX headwind has decreased from an estimated $80 million to around $20 million, with expectations of stability for the rest of the year [42] Question: What is the outlook for share buybacks given the uncertainty? - Management stated that they will assess share buybacks each quarter based on cash flow forecasts and market conditions, with a current limitation due to a tax matters agreement [97] Question: What is the sentiment among customers regarding tariffs and trade policies? - Management reported that customer sentiment remains stable, with ongoing discussions to mitigate tariff impacts [81]

Financial Data and Key Metrics Changes - Consolidated freight revenue declined by 1.8% or approximately $4.5 million to $243.2 million, primarily due to a decrease in the managed freight segment [8] - Consolidated adjusted operating income shrank by 26.6% to $10.9 million, attributed to adverse operating conditions that reduced equipment utilization [8] - Net embeddedness increased by $5.8 million to $225.4 million, yielding an adjusted leverage ratio of approximately 1.55 times and a debt-to-capital ratio of 33.7% [10] - Return on average invested capital was 7.6% compared to 8.3% in the prior year [11] Business Line Data and Key Metrics Changes - The expedited segment had an adjusted operating ratio of 94.2%, which fell short of expectations, with average fleet size decreasing by 48 units or 5.3% to 852 tractors [11][12] - Dedicated experienced average fleet growth of 212 units or approximately 16.7%, with freight revenue increasing by $9.5 million or 13.1% compared to the prior year [13] - Managed freight exceeded profitability expectations, focusing on profitable freight and reducing insurance-related claims [15] - The warehouse segment saw a 6% decrease in freight revenue and a 42% decrease in adjusted operating profit compared to the prior year, largely due to facility-related cost increases [15][16] Market Data and Key Metrics Changes - The overall freight market faced challenges, with lower miles impacted by weather and avian influenza, leading to higher layover costs and reduced fixed cost coverage [6][7] - The LTL market showed mixed results, with some national LTLs experiencing declines while regional players performed better [44] Company Strategy and Development Direction - The company is focused on improving margins through rate increases, exiting less profitable business, and adding more profitable business [13] - There is a strategic emphasis on growing the dedicated fleet in areas that provide value-added services [14] - The company aims to continue moving towards specialized dedicated services to enhance competitiveness [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about operational improvements in the second quarter, despite recognizing potential economic uncertainties that may delay recovery in the freight environment [17] - The company remains committed to disciplined capital allocation and improving operational leverage as conditions improve [18] Other Important Information - The average age of tractors slightly decreased to 20 months compared to 21 months a year ago [10] - The company anticipates a more normalized maintenance CapEx year in 2025, estimating total CapEx between $75 million to $80 million [58] Q&A Session Summary Question: Discussion on the dedicated side and competitive nature of non-poultry business - Management acknowledged the competitive environment in the non-specialized dedicated market and noted that margins are expected to improve with better weather and recovery from avian influenza [26][27] Question: Commentary on LTL market and AAT business trends - Management indicated mixed performance in the LTL market, with some stress observed, while the AAT business is performing well and looking good going into the second quarter [44][47] Question: Appetite for M&A in the current environment - Management stated that the appetite for M&A remains unchanged, with a focus on disciplined capital deployment and the potential for share repurchases [50][52] Question: Insights into the protein business and avian flu impact - Management explained the cyclical nature of avian flu and projected a return to full capacity by June, with improvements expected in results thereafter [68] Question: Details on tuck-in acquisition and revenue impacts in warehouse and managed transportation - Management provided insights into a recent tuck-in acquisition in the specialty dedicated fleet and expressed optimism for revenue growth in warehousing and managed freight moving forward [75][80]

Financial Data and Key Metrics Changes - First quarter revenues decreased by 1% to $333 million compared to the fourth quarter of 2024 [24] - EBITDA increased to $49.489 million from $46.1 million, with an EBITDA margin rising by 100 basis points sequentially to 14.7% [29] - Diluted EPS remained flat at 6¢ compared to the fourth quarter [28] Business Line Data and Key Metrics Changes - Pressure pumping revenues were essentially flat sequentially, representing 40.1% of total revenues [24][7] - Downhole tools revenues were flat, accounting for 28.2% of total revenues [24][12] - Rental tools saw a notable gain of about 7% [13] Market Data and Key Metrics Changes - The overall service lines in aggregate declined by 1% [7] - Demand and utilization for tier two diesel equipment remain challenging, with competitive pricing in the market [9] Company Strategy and Development Direction - The acquisition of Pentel for $245 million is expected to enhance operational scale and focus on high cash flow generating service lines [14][20] - The company aims to balance pricing and utilization strategies while maintaining asset quality [10] - Future capital expenditures are projected between $165 to $215 million, primarily for maintenance [29] Management's Comments on Operating Environment and Future Outlook - The management expressed concerns about macro uncertainties driven by tariffs and their impact on inflation and the economy [35] - Oil prices falling to the low $60 range may affect customer completion activities [36] - Despite uncertainties, the company maintains a strong balance sheet and secure dividends [37] Other Important Information - The company filed an S-3 registration statement with the SEC for the Rollins Family Control Group shares, viewed as good corporate housekeeping [34] - Steve Lewis was welcomed to the board of directors, while Gary Rollins and Pam Rollins retired [39] Q&A Session Summary Question: What are the current pricing conversations in the pressure pumping market? - Management noted that while discussions are similar to previous cycles, the current circumstances may impact these discussions due to lower oil prices [48][50] Question: What are the capital allocation priorities post-Pentel acquisition? - The focus is on accretive transactions, exposure to larger customers, and businesses with good free cash flow potential [52][54] Question: What is the expected revenue for Pentel? - Pentel generated over $400 million in 2024, with quarterly revenues around $100 million [56][58] Question: Is there a shift in customer activity towards lower CapEx projects? - Management indicated it is early to determine shifts but acknowledged that such changes have occurred in prior cycles [66][72] Question: Are there any signs of increased gas-directed activity? - Management believes that any uptick in gas-directed activity is likely further down the road [74][76] Question: What is the company's stance on selling older equipment? - The company monitors its equipment and aims to avoid reintroducing older assets into the market, focusing on reallocating them to other service lines [92][94] Question: What factors would lead to an acceleration in CapEx spending? - CapEx spending will depend on market conditions and the need to maintain equipment or pursue accretive opportunities [100][101] Question: Is the company focused on consolidating the Permian market or open to other basins? - Management stated they are open to opportunities in various basins, not just the Permian [108][110]

Financial Data and Key Metrics Changes - The company reported record revenue of over $631 million for March, reflecting strong execution and digital marketing efforts [7][17] - Same store sales grew by 11%, driven by aggressive pricing and promotional initiatives [8][19] - GAAP net income for the quarter was $3.3 million, or $0.14 per diluted share, an improvement from the previous year [19] - Adjusted EBITDA for the second quarter was $30.9 million, up 5% year-over-year [20] Business Line Data and Key Metrics Changes - The company experienced historically low margins on new and used boats due to aggressive pricing strategies [9][18] - Diversification into higher margin businesses, such as marinas and superyacht services, has helped mitigate cyclical volatility [9][12] - The gross margin for the quarter was 30%, remaining flat compared to the previous fiscal year [18] Market Data and Key Metrics Changes - The company noted a decline in overall unit volume year-over-year, particularly in the pontoon and value-oriented segments [17][18] - Premium categories performed better, indicating a shift in sales mix towards higher average price point products [17][18] Company Strategy and Development Direction - The company is focused on a customer-centric approach and leveraging technology for competitive advantage [6][7] - Strategic initiatives include selectively closing, consolidating, or expanding locations to align with growth opportunities [10] - The company is committed to building relationships in iconic destinations and enhancing its global superyacht and marina presence [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain economic climate and its impact on retail demand, particularly due to tariffs [6][16] - The company is tempering expectations for near-term growth and recognizing a slower recovery pace in the industry [25] - Despite challenges, management remains confident in the long-term strategic position within the premium segment [25] Other Important Information - The company has been recognized as a great place to work for two consecutive years, highlighting strong team tenure and culture [13] - The balance sheet remains strong, with cash and cash equivalents exceeding $203 million [20] Q&A Session Summary Question: Can you provide details on the disaggregation of the 11% same store sales growth? - Management indicated that the growth was driven by a shift towards premium product mix, despite unit declines in key segments [27][29] Question: What are the direct tariff costs impacting the company? - Management clarified that the guidance reduction is primarily due to macro consumer concerns rather than direct tariff costs [39][40] Question: How is the promotional environment affecting inventory levels? - Management noted that the industry is making progress in clearing aged inventory, with expectations for improved conditions in the summer [48][49] Question: How is consumer demand in the superyacht division? - Management reported strong bookings for the summer season in the Mediterranean, indicating resilience in the superyacht segment [82][84] Question: How does the company view its capital allocation strategy in the current environment? - Management emphasized a prudent approach to acquisitions while focusing on synergies between higher margin businesses [87][88]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported revenue of $447.7 million, an increase of 5.7% compared to the prior year [6] - Net income was reported at $17.2 million, with diluted EPS of $0.23 [11] - Cash flow from operations, excluding payroll accrual changes, was $32.1 million, an increase of $41.3 million over the prior year [6][12] - The company raised its 2025 cash flow from operations expectations from a range of $45 million to $60 million to a range of $60 million to $75 million [12] Business Line Data and Key Metrics Changes - Environmental services revenue was $196.3 million with a margin of 10.8% [10] - Dietary services revenue was $251.3 million with a margin of 7.6% [10] - Cost of services was reported at $379.7 million, representing 84.8% of revenue [11] Market Data and Key Metrics Changes - The company noted that workforce availability and occupancy continue to grow, contributing positively to the business environment [6][8] - The reimbursement environment remains stable, with a proposed 2.8% increase for Medicare rates for fiscal year 2026 [19] Company Strategy and Development Direction - The top three strategic priorities for the company include driving growth through management development, managing costs through operational execution, and optimizing cash flow [8] - The company is focused on increasing customer payment frequency and enhancing contract terms [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the industry's strength due to a multi-decade demographic tailwind [6][19] - The recent court ruling on minimum staffing rules is expected to provide clarity and stability to the provider community [20] - Management remains optimistic about the future, citing strong fundamentals and a favorable position to capitalize on upcoming opportunities [50] Other Important Information - The company completed a small tuck-in acquisition, which is expected to contribute about 1% to total revenue for 2025 [15] - The company repurchased approximately $7 million of common stock during Q1, bringing total buybacks to about $23 million since February 2023 [15] Q&A Session Summary Question: Regulatory environment and customer feedback - Management highlighted that industry fundamentals are gaining strength, with labor availability being crucial for occupancy growth [18][19] Question: Impact of potential tax changes on Medicaid reimbursement - Management expressed confidence that potential changes would likely not impact funds flowing to skilled nursing facilities [25] Question: Sustainability of gross and EBITDA margins - Management attributed strong margins to service execution and expects this trend to continue into Q2 and beyond [30][31] Question: Inflation impact on food and labor costs - Management noted that while food inflation is increasing, they have provisions to manage costs and are seeing strong job growth in the healthcare sector [33][35] Question: Revenue guidance for Q2 and cash flow expectations - Management clarified that the revenue guidance reflects various factors, including timing of new business adds and the recent acquisition [40][41] - The increase in cash flow guidance was attributed to strong Q1 performance and the receipt of CARES Act funds [44][46]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported revenue of $447.7 million, an increase of 5.7% compared to the prior year [6][10] - Net income was reported at $17.2 million, with diluted EPS of $0.23 [11] - Cash flow from operations, excluding payroll accrual changes, was $32.1 million, an increase of $41.3 million over the prior year [6][12] - The company raised its 2025 cash flow from operations expectations from a range of $45 million to $60 million to a range of $60 million to $75 million [12] Business Line Data and Key Metrics Changes - Environmental services revenue was $196.3 million with a margin of 10.8% [10] - Dietary services revenue was $251.3 million with a margin of 7.6% [10] - Cost of services was reported at $379.7 million, representing 84.8% of revenue [11] Market Data and Key Metrics Changes - Days Sales Outstanding (DSO) improved to 78 days from 88 days year-over-year [13] - The skilled nursing industry added approximately 24,000 new jobs in Q1 2025, indicating a recovery trend [37] Company Strategy and Development Direction - The company’s top three strategic priorities include driving growth through management development, managing costs through operational execution, and optimizing cash flow [8] - The company is focused on organic growth drivers, with a small tuck-in acquisition contributing about 1% to total revenue [15][44] Management's Comments on Operating Environment and Future Outlook - Management noted that industry fundamentals are strengthening, supported by a multi-decade demographic tailwind [6][19] - The reimbursement environment is stable, with a proposed 2.8% increase for Medicare rates for fiscal year 2026 [19] - Management expressed confidence in sustaining positive cash collection momentum for the rest of the year [47] Other Important Information - The company opportunistically repurchased approximately $7 million of common stock during Q1 2025 [15] - The Texas federal court ruling on minimum staffing rules has provided clarity and reduced regulatory overhang for the industry [20] Q&A Session Summary Question: Regulatory environment and customer feedback - Management highlighted that industry fundamentals are gaining strength, with labor availability being crucial for occupancy growth [18][19] Question: Impact of potential tax changes on Medicaid reimbursement - Management expressed confidence that potential changes would likely not impact funds flowing to skilled nursing facilities [25][26] Question: Sustainability of gross and EBITDA margins - Management attributed strong margins to service execution and expects this trend to continue [32][34] Question: Inflation impact on food and labor costs - Management noted food inflation and stable wage growth, with a strong recovery in job additions within the healthcare sector [35][37] Question: Clarification on revenue guidance for Q2 - Management indicated that the guidance reflects variables such as timing of new business adds and the impact of the recent acquisition [42][44] Question: Cash flow guidance and collection momentum - Management confirmed that the increase in cash flow guidance was due to both the ERC funds and strong Q1 performance [46][47]

Core Viewpoint - The recent stock market correction has created investment opportunities in high-quality companies like SharkNinja, which has shown resilience despite macroeconomic fears [1][2]. Company Overview - SharkNinja, a $12.5 billion company, went public in July 2023 after being spun off from JS Global and is based in Massachusetts [3]. - The company generated approximately $5.5 billion in sales last year, with revenue evenly split between its Shark and Ninja brands [4]. Product Innovation and Marketing - SharkNinja employs a modern approach to product innovation, focusing on customer pain points and utilizing insights from 1,000 engineers and designers to create highly rated products [5]. - The company leverages both traditional infomercials and social media influencers for marketing, fostering strong brand loyalty [6]. Growth Strategy - SharkNinja has demonstrated robust growth, with a 21% annualized revenue increase since 2008 and a 30% growth last year, driven by market share expansion, new product categories, and international growth [9][10]. - The company entered four new product sub-categories last year, including an LED beauty facemask and a portable cooler, marking its expansion into sporting goods [8]. Financial Performance - SharkNinja's gross margins have improved significantly from 40% to 49.1% over the past three years, resulting in a return on equity of 25.7% [13]. - Management has a history of conservative guidance, with adjusted net sales expected to grow 10% to 12% this year, while adjusted net income is projected to rise 12% to 15% [14]. Tariff Mitigation - SharkNinja's manufacturing is primarily based in Southeast Asia, with operations in countries like Vietnam and Thailand, which face lower tariffs compared to China [15][16]. - The company plans to shift about 90% of its U.S. volume outside of China by the end of Q2, alleviating potential tariff impacts [17]. Investment Opportunity - Despite concerns over tariffs, SharkNinja is positioned as a high-ROE growth company trading at a below-market multiple, presenting a potential opportunity for long-term investors [18].

Core Viewpoint - Vici Properties is a leading real estate investment trust (REIT) specializing in gaming real estate, with a strong portfolio and growth potential despite a challenging interest rate environment [1][3]. Group 1: Company Overview - Vici Properties owns 54 gaming properties, including iconic locations on the Las Vegas Strip such as Caesars Palace, MGM Grand, and The Venetian [1]. - The portfolio includes over 60,000 hotel rooms, 4.2 million square feet of gaming space, 6.7 million square feet of meeting space, and more than 1,000 food, beverage, and retail outlets [2]. Group 2: Business Strategy and Growth Potential - Vici has a solid lease quality, with an average lease term of 41 years and 90% of leases protected from inflation [4]. - The company is expanding into non-gaming experiential real estate, having made its first major non-gaming acquisition in 2023 with Bowlero bowling centers [5]. - Vici has the right of first refusal to acquire additional Las Vegas Strip properties and regional assets from Caesars [6]. Group 3: Financial Performance and Capital Allocation - Vici has a strong track record of adding value through acquisitions, including its purchase of MGM Growth Properties and The Venetian, which has increased per-share funds from operations [7]. - The company has consistently raised its dividend since its IPO, supported by excellent capital allocation [8]. Group 4: Adaptation to Market Conditions - Despite a high-interest environment, Vici has continued to grow by leveraging elevated interest rates to make financing investments [9]. - The company issued debt at a 4.75% interest rate and has financed new property constructions, such as a Margaritaville resort, at higher yields [10][11]. - Vici's financing deals often include the right to acquire the financed properties, creating a growth pipeline for future opportunities [12]. Group 5: Conclusion - Vici Properties boasts a high-quality asset portfolio, a strong balance sheet, and a management team with a proven record of smart capital allocation, positioning it well for future growth and benefiting from potential falling interest rates [13].

Financial Data and Key Metrics Changes - In Q3 2025, revenues increased by 4% to $335.4 million, with an improved operating loss of $20.9 million compared to $30.6 million in the prior year [34] - Adjusted EBITDA was $6 million, up from a loss of $7.2 million a year ago, and net loss improved to $1.3 million from a loss of $23.3 million [34] - Adjusted loss per diluted share improved to $0.05 compared to a loss of $0.80 last year [34] Business Line Data and Key Metrics Changes - Children's Book Publishing and Distribution revenues increased by 5% to $203.3 million, with adjusted operating income rising to $7.6 million from $2.8 million [35] - Book Fairs revenues were $110.7 million, an increase of 8%, while Book Clubs revenues rose by 14% to $15.2 million [36][37] - Entertainment segment revenues were $12.8 million, reflecting the contribution of 9 Story Media Group, but adjusted operating loss was $2.4 million compared to a loss of $0.1 million a year ago [39] - Education Solutions segment revenues declined by 16% to $57.2 million, with an adjusted operating loss of $6.9 million compared to a loss of $0.8 million in the prior year [41] Market Data and Key Metrics Changes - The International segment saw revenues of $59.3 million, with a year-over-year increase excluding unfavorable foreign currency exchange impacts [45] - Major markets including Canada, the U.K., and New Zealand benefited from strong sales of new titles, particularly "Dog Man: Big Jim Begins" [30] Company Strategy and Development Direction - The company remains committed to capital allocation priorities, investing in growth initiatives while returning over $35 million to shareholders through share repurchases and dividends [9] - A strategic review of the Education Solutions business is underway to optimize its long-term potential [29] - The company is focused on enhancing its core and adjoining markets, leveraging its brand and distribution channels for growth opportunities [60] Management's Comments on Operating Environment and Future Outlook - Management noted increasing consumer caution in spending, particularly in discretionary categories like children's books, and uncertainty around federal education policy affecting school purchases [12][68] - The company anticipates modest revenue growth for the full year, with adjusted EBITDA forecasted at approximately $140 million [10][53] - Management expressed confidence in long-term growth opportunities despite short-term pressures [60] Other Important Information - The company has a strong balance sheet with modest debt and significant owned real estate assets, providing options for liquidity and shareholder returns [9][48] - The company repurchased 1.45 million shares for $30 million in the last quarter, with an additional $53.4 million authorized for repurchases [51][52] Q&A Session Summary Question: Outlook on backlist sales given consumer pressure - Management indicated that successful frontlist titles can drive backlist sales, particularly with key authors like Dav Pilkey and Suzanne Collins [66][67] Question: Changes in funding levels for school districts - Management noted that schools are being more cautious with spending, primarily pausing to assess future funding levels [69][70] Question: Strategic review of Education Solutions - The review is internally led, focusing on resource allocation to ensure success in the supplemental education market [78] Question: Fair value of real estate assets - Management refrained from providing specific valuations but emphasized the importance of making information available for investor assessment [83]

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][12] - Adjusted net income grew 18% year over year, with adjusted basic EPS increasing by 26% compared to the fourth quarter of 2023 [12][10] - The adjusted net margin was 18.4%, one percentage point higher year over year, reflecting strong operational performance [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%, indicating effective pricing strategies and increased contributions from banking and credit solutions [8][9] - 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][21] 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][19] - The banking active client base grew 46% year over year to 3.1 million, outpacing the growth in the payments client base [19] 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][10] - Key initiatives for 2025 include investment products and workflow tools to accelerate deposit growth, alongside a focus on client engagement [8][19] - The company is transitioning to a strategy that emphasizes gross profit as a key performance metric, reflecting a more comprehensive view of monetization [18][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential macroeconomic challenges but expressed confidence in delivering sustainable long-term value creation [43][44] - The company remains committed to disciplined execution and prudent capital allocation, with a focus on maximizing intrinsic business value per share [43][44] - Management highlighted the importance of adapting to industry dynamics and maintaining a strong capital structure to support future growth [37][92] 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 [28] - The adjusted net cash position at the end of the quarter was BRL4.7 billion, reflecting ongoing share repurchase activity [34] - The company expects to return excess capital to shareholders over time when growth opportunities are not immediately available [37] Q&A Session Summary Question: Performance of banking solutions and areas for improvement - Management noted that deposits are growing ahead of TPV due to successful bundling of payments and banking solutions, with ongoing development of new offerings to enhance client engagement [47][50] Question: View on dividends and capital structure - Management emphasized a commitment to transparency in capital allocation but did not commit to specific targets for dividends or buybacks at this time [52][53] Question: Pricing increases and their impact - Management confirmed that a substantial repricing initiative was implemented at the beginning of the first quarter of 2025, with expectations of low churn during this process [62][63] Question: Guidance on basic vs. diluted EPS - Management explained the decision to guide basic EPS was due to accounting volatility and the desire to avoid double counting share-based compensation expenses [66][68] Question: Potential sale of software business - Management stated that while there have been offers, none met the intrinsic value established for the software assets, and the focus will remain on maximizing value through cross-selling strategies [79][80]