Second Quarter 2025 Results August 4, 2025 Cautionary Statement Regarding Forward-Looking Information This press release contains forward-looking statements within the meaning of the federal securities laws, including statements regarding guidance for the third quarter of 2025. The forward-looking statements are based on current expectations, estimates, forecasts, and projections about the industry in which we operate and management's beliefs and assumptions. Forward-looking statements may be identified by ...

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $44 million, a decline of 13.7% from the prior year quarter, with adjusted EBITDA at $5.8 million, reflecting a margin of 13.3% compared to 13.5% in Q2 2024 [7][18][20] - Same store revenue declined approximately 22% year-over-year, although it improved marginally from Q1 2025 [8][18] - Average revenue per case was approximately $12,975, consistent with the previous year [18] Business Line Data and Key Metrics Changes - Cases declined by 14.1% to 3,392, primarily due to a challenging market environment [18] - The percentage of patients using financing for procedures increased to 50%, up from 44% in Q1 2025 [19] - Customer acquisition cost decreased to $2,905 per case from $3,325 in the prior year quarter, marking the first quarter-over-quarter decline since going public [20] Market Data and Key Metrics Changes - The company experienced strong consumer interest, with record levels of lead growth and increased consultation volume [7][11] - The macroeconomic environment remains challenging, impacting consumer spending and leading to hesitancy in purchasing decisions [28][46] Company Strategy and Development Direction - The company is focused on five business priorities: enhancing marketing strategies, optimizing sales, introducing new services, improving customer experience, and investing in technology [10][11][12][14] - A pilot for a new skin tightening procedure was launched in Q2 2025, with plans to expand it further [13][31] - The company aims to stabilize sales and return to growth, with no planned new center openings for 2025 [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy to stabilize sales and improve profitability despite the challenging operating environment [7][15] - The company reiterated its annual outlook, expecting revenue between $160 million and $170 million and adjusted EBITDA between $16 million and $18 million for fiscal 2025 [23] Other Important Information - The CFO announced plans to retire later in the year, with a search underway for a replacement [5] - The company repaid $16 million in debt during the quarter, improving its financial position [21][22] Q&A Session Summary Question: Guidance implies revenues that are flattish in the second half, what are the drivers for the acceleration? - Management noted that while consumer uncertainty persists, record high leads and consultation growth are expected to stabilize revenue and improve EBITDA margins in the second half [28][29] Question: Update on the skin tightening offering and its impact on revenue? - Management confirmed that there are no standalone expectations for skin tightening in guidance, but strong interest has been observed [31][32] Question: Performance of the new centers opened in 2024? - The new centers are performing in line with expectations, though lower than historical averages due to consumer pressures [36][37] Question: Any seasonality considerations for Q3? - Management indicated typical softening in Q3, with expectations for improvement in Q4 as cost initiatives take effect [38][39] Question: Update on the London facility's performance? - The London facility has shown improvement but remains cash flow negative, with management focused on enhancing results [41] Question: Insights on consumer sentiment and market dynamics? - Management noted a choppiness in consumer behavior, with consumers hesitant to make purchases, but believes the company is well-positioned compared to competitors [46]

Financial Data and Key Metrics Changes - Revenue for Q2 was $300 million, significantly exceeding the guidance of $170 million, driven by the Samsung arbitration award and HP license agreement, compared to $224 million in Q2 of the previous year [14][19] - Annualized recurring revenue (ARR) reached an all-time high of $553 million, a 44% increase year-over-year, primarily due to momentum in the smartphone program [7][16] - Adjusted EBITDA for the quarter was $237 million, with an adjusted EBITDA margin of 79%, up from 71% in Q2 of the previous year [19] - Non-GAAP EPS reached an all-time high of $6.52, well above the guidance range of $2.67 to $2.90 [19] Business Line Data and Key Metrics Changes - The smartphone program's ARR increased 58% year-over-year to $465 million, with nearly 80% of the global market under license [9][17] - Revenue from the consumer electronics (CE) and IoT program increased 175% in Q2 to approximately $65 million, driven by the new HP agreement [9] - The total contract value of licenses signed since 2021 exceeded $4 billion, indicating strong momentum in the IP as a service business model [9] Market Data and Key Metrics Changes - The new Samsung agreement does not cover digital TVs and display monitors, which are under a separate license [8] - The company has secured agreements with major Chinese OEMs, including Oppo and Vivo, enhancing its smartphone program [9] Company Strategy and Development Direction - The company aims to exceed $1 billion in ARR across all programs by 2030, leveraging growth in smartphone and CE/IoT sectors [18] - The development of 6G technology is a key focus, with expectations of opening new monetization opportunities in various verticals such as industrial IoT and smart cities [10][11] - The company emphasizes the importance of foundational research and innovation in maintaining a competitive edge in the industry [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future growth potential, particularly in the wireless market and adjacent verticals [35] - The company is closely monitoring potential legislative changes regarding IP tariffs but has not made any definitive comments on the impact [26][27] - The updated guidance for 2025 reflects confidence in continued progress and potential catch-up payments [28] Other Important Information - The company plans to attend several investor events in Q3, including the Jefferies Tech Conference and the Evercore Tech Conference [22] - The company maintains a strong balance sheet and continues to return capital to shareholders through buybacks and dividends [19] Q&A Session Summary Question: Tax rate outlook with new revenue contributions - Management indicated that the long-term tax rate is expected to remain in the mid to high teens, potentially slightly lower due to new tax legislation [25] Question: Potential tariffs on IP - Management is monitoring the situation closely and maintains open dialogue with policymakers [26][27] Question: Long-term wireless market opportunities - Management is optimistic about future growth in wireless and adjacent markets, particularly with the development of 6G technology [35] Question: Streaming opportunity and Disney litigation update - Continuous dialogue with major players is ongoing, and progress has been made in the Disney litigation [38][40] Question: Contribution of Samsung to recurring revenue - Samsung's contribution to recurring revenue increased to $33 million for the quarter, up from $20 million based on the prior agreement [59] Question: Recurring revenue growth trajectory - Management expects recurring revenue to trend based on existing contracts, with potential for new agreements to be additive [60][62] Question: Historical trends in contract renewals - Renewal outcomes vary, with examples showing both significant increases and moderate growth depending on the situation [64]

Financial Data and Key Metrics Changes - The company reported second quarter earnings per share of $1.67, a 17% increase year over year from $1.43 in 2024 [5] - Total Marine Transportation segment revenues were $493 million with an operating income of $99 million, resulting in an operating margin of 20.1% [14] - Distribution and Services segment revenues were $363 million with an operating income of $35 million, yielding an operating margin of 9.8% [20] Business Line Data and Key Metrics Changes - Inland marine transportation saw barge utilization rates in the low to mid 90% range, with revenues increasing 1% year over year due to improved pricing [16] - Coastal marine transportation revenues increased 3% year over year and 14% sequentially, with operating margins in the high teens [17][19] - Power generation revenues increased 31% year over year, driven by strong demand from data centers and industrial customers [10] Market Data and Key Metrics Changes - Spot market rates increased in the low single digits sequentially and in the mid single digits year over year, supported by limited barge availability [7] - The inland fleet had over 1,100 barges representing 24.5 million barrels of capacity, with expectations to end 2025 with 1,110 inland barges [19] - The oil and gas segment experienced a 27% year over year decline in revenues, although operating income increased significantly due to cost management [23] Company Strategy and Development Direction - The company aims to maintain capital discipline while pursuing long-term value creation through strategic investments and acquisitions [31] - The outlook for inland marine is positive due to limited new barge construction, although some price moderation is expected [32] - The company plans to use free cash flow primarily for share repurchases, absent any acquisitions [80] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment has become more complex, with trade policy shifts introducing uncertainty [29] - Despite challenges, the company expects 15% to 25% year over year growth in earnings for 2025, with potential adjustments based on demand trends [30] - The company remains confident in its ability to adapt and execute, with a strong balance sheet and solid free cash flow generation [31] Other Important Information - The company expects to unwind some working capital as the year progresses, with capital expenditures projected between $60 million and $290 million for the year [26] - The backlog in power generation projects increased by 15% to 20% in the second quarter, indicating strong future demand [53] Q&A Session Summary Question: Insights on inland business demand and spot pricing - Management acknowledged a slight pullback in chemical customer volumes but maintained a cautious outlook for the third quarter with expected barge utilization around 90% [41][42] Question: Update on power generation segment performance - The strong performance was attributed to deliveries and a growing backlog, with expectations for continued strong shipments in the third quarter [51][52] Question: Clarification on capital expenditures and M&A strategy - The company plans to defer some growth-related capital expenditures into 2026 while focusing on stock buybacks in the absence of acquisitions [78][80] Question: Outlook on inland and coastal margins - Management indicated that while inland margins are expected to remain in the low 20% range, coastal margins are anticipated to improve significantly due to supply constraints [66][67]

Financial Data and Key Metrics Changes - Revenue for the second quarter was $2,530,000,000, up 5% on a reported basis and 4% on an organic basis compared to the same period a year ago [20][21] - Adjusted EBITDA was $871,000,000, an increase of $45,000,000 or 5% year over year [21] - Adjusted operating cash flow was $442,000,000, reflecting strong operational performance [21] Business Line Data and Key Metrics Changes - Salix revenues were $627,000,000, an increase of 12% compared to the same period last year, driven by favorable net pricing and strong volume performance [23] - Solta revenues were $128,000,000, an increase of 25% on a reported basis and 26% on an organic basis, primarily fueled by South Korea [25] - The diversified segment revenues were $219,000,000, a decrease of 13% compared to the same period a year ago, impacted by one-time pricing adjustments in neurology and dermatology [27] Market Data and Key Metrics Changes - EMEA achieved 6% organic growth in the second quarter, marking its tenth consecutive quarter of organic growth [11] - Canada experienced double-digit growth driven by promoted products, with a 12% increase in the top line [24] - LATAM's performance was softer due to ongoing macroeconomic challenges and partial channel destocking [24] Company Strategy and Development Direction - The company is focused on unlocking value, growth, and optimizing its capital structure, with a commitment to R&D and business development [30][31] - The acquisition of Direct Corporation aims to enhance the development of treatments for alcohol hepatitis, showcasing the company's commitment to addressing unmet medical needs in hepatology [17][18] - The company continues to evaluate opportunities to maximize returns for stakeholders and improve its capital structure [7][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute strategic priorities and deliver value for stakeholders, despite a more uncertain macro environment [4][20] - The company reaffirmed its full-year 2025 guidance for revenue and adjusted EBITDA, indicating a positive outlook for the remainder of the year [5][30] Other Important Information - The company completed a $7,900,000,000 debt refinancing, extending maturities and improving its capital structure [7][28] - The company has settled nine more opt-out cases year to date, with 11 remaining, and received communication from the IRS that a significant legal matter has concluded without negative cash flow implications [19] Q&A Session Summary Question: Share buybacks and DTC efforts for XIFAXAN - Management confirmed that share buybacks are still a possibility but have been deprioritized in favor of reinvestment in the business [36][37] - The focus for DTC investments is currently on the OHE indication, with significant growth observed in both indications [38][39] Question: Rifaximin franchise and SSD trials - Management confirmed that lactulose background therapy is allowed in the SSD trials and emphasized the potential patient population for the SSD product [42][44] - The possibility of XIFAXAN being available over-the-counter has not been considered at this time [45] Question: XIFAXAN ROA headwinds and revenue discrepancies - Management discussed ongoing negotiations regarding XIFAXAN and the potential impact of IRA on pricing, emphasizing the importance of presenting their case [48][49] - Discrepancies between revenue growth and prescription growth for RELISTOR and TRULANCE were attributed to favorable gross-to-net adjustments [51] Question: Direct Corporation acquisition details - Management expressed enthusiasm about the Direct Corporation acquisition and its potential to address significant unmet needs in hepatology [53][54] Question: Rifaximin SSD differentiation and head-to-head trials - Management stated that the SSD formulation is different in dosage and action compared to existing formulations, and no head-to-head trials are planned at this time [58][59] Question: IRA negotiations and price points - Management acknowledged the ongoing negotiations and the potential for significant price cuts, while emphasizing their strategy to minimize the impact [62][66]

Core Points - Mohawk Industries reported Q2 2025 net earnings of $147 million, with an EPS of $2.34, and adjusted net earnings of $173 million, with an adjusted EPS of $2.77 [1][2] - The company's net sales for Q2 2025 were $2.8 billion, showing a slight year-over-year decline of 0.8% when adjusted for constant working days and exchange rates [1][2] - For the first half of 2025, net sales totaled $5.3 billion, reflecting a 2.8% decrease year-over-year [2] Financial Performance - Q2 2025 gross profit was $714.4 million, down from $723.8 million in Q2 2024, with a gross profit margin of 25.5% [9][23] - Operating income for Q2 2025 was $188.7 million, compared to $214 million in Q2 2024, resulting in an operating margin of 6.7% [9][26] - Free cash flow for Q2 2025 was approximately $126.1 million, with capital expenditures of $80.2 million [11] Strategic Initiatives - The company is focusing on operational optimization, cost control, and market expansion to improve performance amid challenging market conditions [3][5] - Mohawk has initiated a restructuring plan aimed at achieving approximately $100 million in savings, which includes closing high-cost operations and optimizing distribution channels [3][5] - The company has also approved a new share repurchase program worth $500 million [3] Market Conditions - The industry is facing ongoing price pressures due to declining market sales and rising input costs, which are expected to peak in Q3 2025 [5] - Mohawk is adapting to increasing tariffs by emphasizing local production and adjusting pricing strategies [4][5] - The global ceramic business segment reported a 0.5% year-over-year increase in net sales, while the North American flooring segment saw a 1.2% decline [4][15] Future Outlook - The company anticipates that adjusted EPS for Q3 2025 will be between $2.56 and $2.66, excluding restructuring and other one-time costs [5] - Historical trends suggest that the industry may experience several years of sales growth following a downturn, and Mohawk is positioned to capitalize on this potential recovery [6]

Financial Data and Key Metrics Changes - Operating earnings for the second quarter were $81.7 million, a 21% increase from the first quarter [6] - Net income was reported at $100.2 million or $0.50 per diluted share, with operating earnings of $0.41 per diluted share, reflecting a 21% increase linked quarter and a 78% increase year-over-year [11] - Total assets reached $25.5 billion, up 2% from March 31 [8] - Tangible book value per share increased 4% to $12.53 [8] - Operating return on average assets rose 21 basis points to 1.3%, while operating return on average tangible equity increased from 11.7% to 13.6% [7] Business Line Data and Key Metrics Changes - Robust loan growth of 8% annualized this quarter, with commercial loan pipelines steady at approximately $500 million [8][9] - Wealth management assets under management reached a record high of $8.7 billion, with fees of $17.3 million up $800,000 linked quarter [15] - Non-interest income was $42.9 million, compared to a non-interest loss of $236.1 million in Q1 [14] Market Data and Key Metrics Changes - Deposits totaled $21.2 billion, an increase of $424 million from the prior quarter, with 8% annualized growth [17] - Nonperforming loans decreased to $54.7 million or 30 basis points of total loans, improving the coverage ratio to 424% from 245% at the end of Q1 [21][22] Company Strategy and Development Direction - The company is focused on organic growth and strategic investments in talent, particularly in commercial lending [8][19] - Plans to consolidate 13 branch locations following the merger with Harbor One, with integration planning well underway [29][30] - The company is raising its full-year loan growth outlook to 3% to 5% and expects a favorable mix shift from CDs to money markets [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of customers despite economic uncertainties and highlighted the importance of proactive risk management [9][10] - The company remains cautious in its outlook but is optimistic about the ongoing positive trends in credit quality and profitability metrics [10][21] Other Important Information - The company repurchased $3 million worth of shares at an average price of $16.36 prior to the merger announcement [20] - A dividend of $0.13 is set to be paid in September [20] Q&A Session Summary Question: Will there be more securities portfolio restructurings in the coming quarters? - Management indicated that while there is potential for further restructuring, it is currently on the back burner due to the merger [34][35] Question: What drove the significant drop in nonperforming loans this quarter? - The drop was attributed to the resolution of five credits by the managed asset group, rather than loan sales [36] Question: Are there plans to expand into new markets following the Harbor One deal? - Management is open to expanding in Rhode Island but currently has no plans to extend banking services into Connecticut or New York [38][39] Question: What drove the strong growth in commercial and industrial lending? - Growth was driven by increased customer confidence and the addition of talent in the commercial lending division [44][45] Question: What is the outlook for the margin in the second half of the year? - The margin is expected to be relatively flat, influenced by core deposit growth and competitive market conditions [49][50] Question: Can you provide guidance on Rabbi Trust income? - Rabbi Trust income is influenced by equity market performance, and while it can have an impact, it is not expected to be a significant needle mover [54][55] Question: What is the company's appetite for expansion into New Hampshire or Maine? - The company already has a presence in New Hampshire and is looking to grow there, but has no current plans for expansion into Maine [72][73]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported sales of $476 million, reflecting an 11% year-over-year growth on both a reported and organic basis [6][9] - Adjusted operating income grew 15% year-over-year, with adjusted earnings per share increasing 19% to $1.55 [6][10] - For the first half of 2025, sales increased by 9%, and adjusted operating profit rose by 14%, indicating a strong performance above market growth [6][21] Business Line Data and Key Metrics Changes - Cardio and vascular sales increased by 24% in Q2 2025, driven by new product ramps and strong customer demand [11] - Cardiac Rhythm Management and Neuromodulation sales grew by 2% in Q2 2025, with expectations for mid-single-digit growth for the full year [12] - Adjusted net income for Q2 2025 was $55 million, up 23% year-over-year, attributed to operational improvements and lower interest expenses [13] Market Data and Key Metrics Changes - The company expects sales growth in the mid-teens for Cardio and Vascular for the full year 2025, while CRM and Neuromodulation are projected to grow in the mid-single digits [11][12] - The company anticipates second-half sales growth of approximately 8% at the midpoint, with similar growth rates in Q3 and Q4 [19] Company Strategy and Development Direction - The company is focused on expanding margins through manufacturing and business excellence initiatives, alongside integrating tuck-in acquisitions [8] - The strategic outlook includes maintaining a leverage ratio within the target range of 2.5 to 3.5 times trailing four-quarter adjusted EBITDA [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustained performance levels that will produce a premium valuation for shareholders [21] - The company has good visibility to customer demand and maintains a backlog of approximately $700 million, which supports its guidance for the year [19][75] Other Important Information - The adjusted effective tax rate for Q2 2025 was 19%, down from 20.7% in the prior year, with expectations for the full year to be between 18.5% and 19.5% [13] - The company experienced a foreign exchange headwind of $3 million in Q2 2025, primarily due to a weakening U.S. dollar [14] Q&A Session Summary Question: Full year organic growth guidance update - Management explained that while Q2 showed strong performance, the guidance for the second half remains at 8% due to typical customer demand shifts and tough comparisons from the previous year [25][28] Question: CRM and Neuromodulation growth outlook - Management indicated that the improvement in the full year outlook for CRM and Neuromodulation is driven by strong customer demand and a planned decline in a specific program that is expected to lessen in the second half [33][34] Question: Inventory management and tariffs - Management confirmed that inventory management has normalized and that the impact of tariffs on the business remains minimal, with a range of $1 million to $5 million expected [44][49] Question: Revenue pull forward and future performance - Management clarified that the 11% growth in Q2 included some pull forward of demand from Q3, but overall guidance for the year remains unchanged [60][63] Question: Strategic priorities under new CEO - The new CEO emphasized the continuation of existing strategies focused on growth markets, margin expansion, and tuck-in acquisitions [56][58] Question: Impact of tariffs on customer relationships - Management stated that while tariffs have minimal direct impact, they are actively working with customers to minimize any logistical challenges [95][97]

Financial Data and Key Metrics Changes - Total company service revenue increased by 11% to $40.8 million compared to the second quarter of last year [7] - Adjusted EBITDA grew by 23% to $5.4 million, driven by service revenue growth and cost discipline [7] - Net income attributable to Altisource improved to $16.6 million from a net loss of $8.3 million in the same quarter of 2024 [8] - Income before tax improved to $200,000 from a loss of $7.6 million in the second quarter of 2024 [8] - The corporate segment's adjusted EBITDA loss was $7.5 million, slightly higher than the previous year [14] Business Line Data and Key Metrics Changes - The servicer and real estate segment reported service revenue of $32 million, a 10% increase year-over-year [9] - Adjusted EBITDA for the servicer and real estate segment was $12 million, up 8% from the previous year, with a slight decline in margins due to revenue mix [10] - The origination segment's service revenue increased by 13% to $8.8 million, with adjusted EBITDA improving by 81% to $900,000 [11][12] Market Data and Key Metrics Changes - The residential mortgage delinquency rate remained low at 1.2% in May, with foreclosure starts increasing by 15% in April 2025 compared to the same period in 2024 [15] - Industry-wide origination unit volume increased by 27% in the second quarter compared to the same quarter last year [15] Company Strategy and Development Direction - The company is focusing on businesses with growth potential, including renovation, Granite Construction Risk Management, Lenders One, Hubzu Marketplace, and Foreclosure Trustee [13] - The success of these initiatives is not dependent on an increase in foreclosure starts or a growing residential loan origination market [14] - The company aims to maintain cost discipline while leveraging a strong sales pipeline to drive future growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance in a low delinquency environment and highlighted the potential for accelerated growth if loan delinquencies and foreclosure activities increase [17] - The company is well-positioned to benefit from stronger revenue and adjusted EBITDA growth in its countercyclical businesses [17] Other Important Information - The company ended the quarter with $30 million in unrestricted cash [8] - The estimated total weighted average sales pipeline for the real estate segment was $25.3 million [11] Q&A Session Summary Question: Inquiry about working capital build - Management indicated that the working capital activities were normal and there was nothing unusual in the quarter [20][21]

Financial Data and Key Metrics Changes - Net sales increased by 49% to $1.9 billion, driven by the S and P EMEA acquisition and strong volume in the U.S. business [22][5] - Adjusted EBITDA rose by 25% to $328 million, with adjusted EBITDA margin improving by 101 basis points to 17.2% [22][5] - Adjusted EPS was $1.37, reflecting a 7% year-over-year increase, impacted by higher interest expenses [21][5] Business Line Data and Key Metrics Changes - Consumer Packaging segment saw a 110% increase in sales, with adjusted EBITDA growing by 115% due to acquisitions and productivity gains [23][6] - Industrial segment sales decreased by 2% to $588 million, with adjusted EBITDA increasing by 15% to $113 million, driven by favorable pricing despite lower volumes [24][6] - All Other business sales were flat at $95 million, with adjusted EBITDA declining by 8% [25][6] Market Data and Key Metrics Changes - EMEA sales were impacted by a late start to the vegetable packaging season, with expectations for recovery in the third quarter [15][14] - Demand for pet food and premium food categories remained resilient despite macroeconomic pressures [15][14] - The company anticipates a solid vegetable harvest in the third quarter, which is expected to drive growth [15][14] Company Strategy and Development Direction - The company is focused on businesses where it can leverage advanced material science and technology to drive competitive advantage [8][10] - Recent divestitures are aimed at reallocating capital to core businesses, with a target to reduce net leverage to 3-3.3 times by the end of 2026 [11][10] - The company is investing in automation and capacity expansion to enhance productivity and meet growing market demands [29][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged global macroeconomic pressures affecting consumer and industrial demand but expressed confidence in strong performance in the North American markets [27][28] - The company is maintaining its full-year guidance for net sales and adjusted EBITDA, despite some softness in international markets [27][28] - Management remains focused on controlling costs and reducing leverage while creating long-term shareholder value [36][28] Other Important Information - The company has achieved approximately $20 million in annual savings from stranded costs due to divestitures and is optimizing its operating footprint [12][11] - The integration of S and P EMEA is progressing well, with projected synergies of $40-50 million by the end of the year [12][14] Q&A Session Summary Question: Can you discuss the current volume run rate across major businesses and expectations for SMT EMEA? - Management indicated a slight decline in the paper can business but expects growth in the third quarter, particularly in metal cans [40][42] - EMEA volumes were down due to sardine availability and a late vegetable harvest, but recovery is anticipated in the third quarter [44][46] Question: What are the expectations for stranded costs and interest expenses moving forward? - Management expects improvements in stranded costs and a reduction in interest expenses in the second half of the year [61][62] Question: How are tariff impacts affecting the business? - Management noted that tariffs are being mitigated, but they could impact retail and consumer behavior [75][76] Question: Can you provide details on the EBITDA expectations for the EVO business? - Management confirmed expectations for year-over-year EBITDA growth and highlighted significant new contracts that will contribute to future volumes [69][70] Question: What is the outlook for the consumer segment's sustainability? - Management expressed confidence in maintaining strong performance in the consumer segment, driven by ongoing investments and new product launches [110][112]