Core Viewpoint - Galapagos NV intends to wind down its cell therapy business to optimize capital allocation and focus on new transformational business development opportunities [1][3][11] Strategic Review and Decision - The decision follows a comprehensive strategic review that included exploring potential divestiture options, but no viable proposals were received [3][4] - The Board of Galapagos unanimously approved the wind down, with the exception of two Directors appointed by Gilead who recused themselves [4] Operational Impact - The wind down is expected to affect approximately 365 employees across Europe, the U.S., and China, and will involve the closure of sites in Leiden, Basel, Princeton, Pittsburgh, and Shanghai [5] - The remaining organization will focus on long-term growth through new business development while maintaining a presence in Mechelen, Belgium [5] Financial Implications - If the wind down proceeds, the company anticipates incurring operating costs of €100 million to €125 million from Q4 2025 through 2026, along with one-time restructuring costs of €150 million to €200 million in 2026 [6] - An updated cash outlook for 2025 will be provided with the company's third-quarter earnings report in early November [6] Future Focus - The company aims to enhance operational efficiencies and build a pipeline of novel therapeutics under the leadership of its new management team [2][3] - Galapagos will continue to consider any viable proposals for the cell therapy business during the wind down process [4]

Core Viewpoint - Rocky Mountain Chocolate Factory, Inc. is undergoing a transformation aimed at modernizing its operations and achieving scalable growth, with early signs of progress being observed [2] Financial Performance - Total revenue for the second quarter of fiscal 2026 increased to $6.8 million, up from $6.4 million in the same quarter last year, driven by pricing actions and a more profitable sales mix [5] - The company reported a gross profit loss of $33,000 in the second quarter of fiscal 2026, compared to a profit of $600,000 in the year-ago quarter, primarily due to higher input costs and operational inefficiencies [5] - Total costs and expenses remained flat at $7.3 million compared to the previous year [5] - The net loss for the second quarter was $0.7 million, or $(0.09) per share, compared to a net loss of $0.7 million, or $(0.11) per share, in the year-ago quarter [5] Operational Initiatives - The company is focusing on strengthening operations and enhancing visibility through new ERP and POS systems, which are expected to facilitate data-driven decisions [2] - A rebranding initiative and new store developments are underway, with two new franchise locations announced in California and New Jersey, and a company-owned location in Camarillo, California [2] - The company plans to introduce a new loyalty program and expand digital capabilities to improve customer engagement for franchisees [2] Company Overview - Rocky Mountain Chocolate Factory, Inc. is a leading franchiser of premium chocolate and confectionery retail stores, operating over 250 locations across the United States and several international locations [7] - The company has been recognized in Entrepreneur's Franchise 500 for 2025 and Franchise Times' Franchise 400 for 2024 [7]

Core Viewpoint - Harley-Davidson has appointed two new independent directors, Daniel Nova and Matt Reintjes, to its Board of Directors, effective September 15, 2025, to enhance the company's strategic direction and governance [1][2]. Group 1: New Board Appointments - Daniel Nova is a General Partner at Highland Capital Partners and has extensive experience in advising companies through growth and transition, along with a strong background in corporate governance and finance [2][4]. - Matt Reintjes has been the President and CEO of YETI Holdings since 2015, leading the company to become a prominent global outdoor brand, and brings valuable insights from his previous executive roles [4][5]. - The appointments come as part of a broader strategy to strengthen the Board, which has seen four new independent members added in the last three years [6]. Group 2: Board Changes and Leadership - The retirements of directors Sara Levinson and Norman Thomas Linebarger were announced prior to the new appointments, indicating a shift in the Board's composition [5][6]. - Troy Alstead has been appointed as the Presiding Director effective July 30, 2025, and will become Chairman of the Board on October 1, 2025, further indicating leadership changes within the company [6]. Group 3: Company Background - Harley-Davidson, established in 1903, is known for its iconic brand representing freedom and adventure, focusing on motorcycles, accessories, and financial services [7]. - The company aims to maintain its status as the most desirable motorcycle brand globally and has a controlling interest in LiveWire Group, Inc., which focuses on electric motorcycles [7][8].

Group 1 - The company is undergoing a leadership transition with Chris Nelson stepping into the CEO role and Don Allan moving to Executive Chair [2] - The focus for value creation is on completing the transformation, mitigating tariffs to achieve margins above 35%, and pivoting towards growth through targeted innovation and brand activation [2] - Despite challenges in the macro and political environment, the company remains confident in achieving the targets set a year ago [3]

Core Insights - Pentair is positioned as a pure-play water company focused on moving, improving, and enjoying water through three main segments: Flow, Water Solutions, and Pool business [2][3] - The company has been on a transformation journey, successfully expanding its return on sales over several years and anticipates an inflection point leading to top-line growth starting in 2026 [3] Segment Overview - The Flow business is categorized under the "move" segment, while the "improve" segment, known as Water Solutions, is composed of one-third residential and two-thirds commercial operations [2] - The "enjoy" segment, primarily represented by the Pool business, tends to receive the most attention and visibility [2]

Financial Data and Key Metrics Changes - Daktronics reported a net income of $16.5 million, translating to $0.33 per fully diluted share for Q1 FY26, a significant improvement from a loss in the previous year [17] - Operating income for the quarter was $23.3 million, compared to $22.7 million in the same quarter last year, with a notable increase in orders by 35% year-over-year [18][20] - The company ended the quarter with a cash balance of $137 million, a 7% increase from the previous quarter, and operating cash flow rose by 34% year-over-year [23][24] Business Line Data and Key Metrics Changes - The live events business saw an 81% increase in orders year-over-year, driven by successful projects in Major League Baseball and NHL arenas [7] - The commercial business experienced a 5% increase in orders year-over-year, although it declined by 10% sequentially from the previous quarter [8] - The high school park and recreation segment achieved record order bookings, with a 36% increase year-over-year and a 7% sequential increase [11] Market Data and Key Metrics Changes - International orders grew by 22% year-over-year, although they declined by 32% from a strong previous quarter [10] - The transportation business saw a 4% decrease in orders year-over-year, attributed to large order variability [9] Company Strategy and Development Direction - Daktronics is focused on a business and digital transformation plan aimed at improving gross margins through value-based pricing and cost control [5][14] - The company aims to achieve higher operating margins of 10% to 12% and a compound annual growth rate of 7% to 10% by fiscal year 2028 [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for dynamic video communication displays and control systems, supported by a growing backlog [27] - The company remains agile in response to tariff uncertainties and is committed to executing its growth and return objectives outlined in its transformation plan [27][28] Other Important Information - Daktronics has made significant progress in its digital transformation initiatives, including the implementation of a modernized service software system [15][16] - The company repurchased $10.7 million worth of shares during the quarter, indicating a strong capital position [23][24] Q&A Session Summary Question: What does the pipeline look like for order growth in live events? - Management noted strong growth in the live event space and expressed excitement about the pipeline, particularly in college and major league sports [30][31] Question: How sustainable are the gross margin trends moving forward? - Management indicated that gross margin sustainability will depend on revenue mix and fixed cost leverage, with some normalization expected from previous high warranty expenses [32][34] Question: What are the thoughts on M&A opportunities? - Management remains open to M&A opportunities but is being strategic about potential acquisitions, leveraging their strong cash position [35][36] Question: How will digital transformation impact operating expenses and gross margins? - Management expects efficiencies from digital transformation initiatives, which may initially incur expenses but will ultimately benefit gross margins [43][44] Question: What is the status of share buybacks? - Management confirmed that there is approximately $10 million remaining under the current buyback authority and that the board is open to considering additional buyback authorities [45][46]

Financial Data and Key Metrics Changes - Daktronics reported a net income of $16.5 million, translating to $0.33 per fully diluted share for Q1 FY 2026, a significant improvement from a loss in the previous year due to a fair value adjustment on convertible notes [17][18] - Operating income for the quarter was $23.3 million, compared to $22.7 million in the same quarter last year, with a notable increase in orders by 35% year-over-year [19][20] - Cash balance at the end of the quarter was $137 million, up 7% from the previous quarter, with operating cash flow increasing by 34% year-over-year [23][24] Business Line Data and Key Metrics Changes - The live events business saw an 81% increase in orders year-over-year, driven by major projects in Major League Baseball and NHL arenas [7] - The commercial business experienced a 5% increase in orders year-over-year, although it declined by 10% from the previous quarter [8] - The high school park and recreation segment achieved record order growth of 36% year-over-year, supported by strong demand for video display systems [11][12] Market Data and Key Metrics Changes - International orders grew by 22% year-over-year, with government and advertising markets being the largest contributors [10] - The transportation business saw a 4% decrease in orders year-over-year, attributed to large order variability [9] Company Strategy and Development Direction - The company is focused on a business and digital transformation plan aimed at improving gross margins through value-based pricing and cost control [5][14] - Daktronics aims to achieve higher operating margins of 10%-12% and a compound annual growth rate of 7%-10% by FY 2028 [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for dynamic video communication displays and control systems, with a growing backlog providing a revenue tailwind [27] - There is ongoing uncertainty regarding tariffs, but the company remains agile in managing potential impacts [27] Other Important Information - The company repurchased $10.7 million worth of shares during the quarter, maintaining a strong cash position for potential M&A opportunities [23][24] Q&A Session Summary Question: Can you talk about the pipeline and what that looks like for order growth the rest of the year? - Management indicated a positive outlook for the live events business, with expectations for continued growth and a strong pipeline [30][31] Question: Was there any one-time items affecting gross margin performance? - Management confirmed that the gross margin performance was primarily due to a favorable revenue mix and improved operational efficiencies, with no significant one-time items impacting the results [32][34] Question: Can you discuss thoughts on M&A and market valuations? - Management acknowledged ongoing M&A opportunities and expressed a strategic approach to potential acquisitions, supported by a strong cash position [35][36] Question: How was the competitive process for the live events projects won? - Management noted that competition varies by market, with significant efforts made to secure specifications and improve margins through financial tools [39][41] Question: Will the digital transformation help in reducing operating expenses? - Management expects efficiencies from digital transformation initiatives, although there may be initial expenses associated with implementation [43][44]

Financial Data and Key Metrics Changes - First quarter net sales were $240.5 million, a decrease of 7% compared to $258.5 million in fiscal 2025, and a sequential decrease of 6% [15] - Adjusted income from operations was $2 million, an increase of $6.7 million year-over-year, and up $23.6 million sequentially [16] - First quarter adjusted EBITDA was $15.7 million, up $5.9 million from the same period last year, and increased $22.8 million sequentially [17] - First quarter free cash flow was $18 million, compared to negative $2.7 million in fiscal 2025, marking an increase of $20.7 million [18] - Net debt decreased by $11.7 million from the fourth quarter to $202.3 million, with a total reduction of $41 million over the last three quarters [19] Business Line Data and Key Metrics Changes - Data center power product sales grew by 12% year-over-year, although sequential sales were lower due to record sales in the previous quarter [8] - EV sales represented 19% of consolidated total sales, an increase from 18% last year, but down from 20% sequentially [7] - The automotive segment experienced weaker sales in North America due to the transition from legacy programs to new ones [16] Market Data and Key Metrics Changes - The company remains optimistic about the long-term megatrend in EVs, expecting a significant rebound in EV sales in fiscal 2027 [8] - The performance in EMEA, particularly in Egypt, has improved significantly, while solid performance continues in Asia [6] Company Strategy and Development Direction - The company is focused on a transformation journey aimed at stabilizing the business and positioning for future growth, with significant organizational changes already implemented [11] - The power solutions segment is seen as a long-term growth engine, with ongoing investments in this area [10] - The company is leveraging its historical expertise in power distribution to capture growth opportunities in data centers, EVs, and military applications [9] Management's Comments on Operating Environment and Future Outlook - Management affirmed guidance for fiscal 2026, expecting to double EBITDA despite a projected $100 million decline in sales due to lower EV demand [5] - The company is confident in its ability to navigate various headwinds and maintain operational improvements [4] - Management highlighted the importance of customer relationships and operational efficiency in driving future growth [39] Other Important Information - The company experienced a delay in reporting first quarter earnings due to a miscalculation of dividend equivalents, which required a waiver from banks [15] - The fiscal 2026 guidance assumes a typical 52-week fiscal year, with expected sales in the range of $900 million to $1 billion [20] Q&A Session Summary Question: How does the automotive segment contribute to EBITDA growth? - Management noted that performance varies by region, with improvements in EMEA and challenges in North America due to program transitions [25] Question: What is the outlook for the Asia market? - The Asia team is leading product development for EV applications, and despite some headwinds, progress is being made [29] Question: What is the status of tariff expectations? - There has been no change in tariff expectations, and the current regime is creating new opportunities for the company [37][39] Question: How far along is the restructuring process? - The company is on track with headquarters consolidation and has reduced headcount by approximately 500 people [40][41] Question: What is the outlook for the commercial vehicle market? - Management expects a rebound in the commercial vehicle space in 2026, with ongoing interest from customers [42] Question: What is the expected growth in the EV market? - The majority of growth is anticipated to come from outside the U.S., particularly in Europe and China [60]

Financial Data and Key Metrics Changes - First quarter net sales were $240.5 million, a decrease of 7% compared to $258.5 million in fiscal 2025, and a sequential decrease of 6% [17][18] - Adjusted income from operations increased by $6.7 million year-over-year to $2 million, and increased by $23.6 million sequentially [18] - First quarter adjusted EBITDA was $15.7 million, up $5.9 million from the same period last year, and increased by $22.8 million sequentially [19] - First quarter free cash flow was $18 million, a significant increase from negative $2.7 million in fiscal 2025 [20][21] - Net debt decreased by $11.7 million from the fourth quarter to $202.3 million, with a total reduction of $41 million over the last three quarters [21] Business Line Data and Key Metrics Changes - Data center power product sales grew by 12% year-over-year, although sequential sales were lower due to record sales in the previous quarter [10][17] - Automotive segment sales were weaker in North America, impacted by the transition from legacy programs to new ones [18] - EV sales represented 19% of consolidated total sales, an increase from 18% last year, but down from 20% sequentially [9] Market Data and Key Metrics Changes - The company remains optimistic about the long-term megatrend in EVs, despite a soft near-term outlook primarily in North America [9][10] - The EMEA market, particularly Egypt, has shown notable improvement, while solid performance continues in Asia [7][12] Company Strategy and Development Direction - The company is focused on a transformation journey aimed at stabilizing the business and positioning for future growth, with significant organizational changes already implemented [13][14] - The power solutions segment is viewed as a long-term growth engine, with ongoing investments in this area [12] - The company plans to launch over 30 new programs this year, with most launches scheduled for the remainder of the year [6][7] Management's Comments on Operating Environment and Future Outlook - Management is confident in affirming guidance for fiscal 2026, expecting to double EBITDA despite a projected $100 million decline in sales due to lower EV demand [6][22] - The company anticipates a rebound in EV sales in fiscal 2027 based on customer forecasts and industry projections [10] Other Important Information - The company experienced a delay in reporting first quarter earnings due to an inadvertent miscalculation of dividend equivalents, which required obtaining a waiver from banks [17] - The fiscal 2026 guidance includes expectations for sales in the range of $900 million to $1 billion and EBITDA between $70 to $80 million [22][23] Q&A Session Summary Question: Automotive segment performance and EBITDA contribution - Management noted that the automotive business in EMEA has improved, while North America faces challenges due to program transitions, but expects stabilization and growth in fiscal 2027 [27][28] Question: Strategic outlook for Asia - The Asia team is leading product development for EV applications, and despite some headwinds, progress is being made in operational and engineering aspects [30][31] Question: Impact of tariff expectations - There has been no significant change in tariff expectations, and the current tariff regime is creating new opportunities for the company [40][41] Question: Restructuring actions progress - The company is on track with headquarters consolidation and has reduced headcount by approximately 500 people as part of the transformation [42][44] Question: End market outlook for commercial vehicles - Management expects a rebound in the commercial vehicle space in 2026, with ongoing interest from customers despite current softness in the market [45][47] Question: Sales guidance and program roll-offs - The sales guidance remains unchanged, with expected reductions in Stellantis programs and positive contributions from new program launches [54] Question: Data center bus bars market - The data center bus bars market is primarily focused on new construction, with opportunities for growth as the company expands its share [55][57] Question: EV sales distribution by region - In fiscal 2025, 55% of EV sales were in EMEA, 16% in Asia, and 30% in North America, indicating a diversified exposure to the EV market [60][61]

Financial Performance & Guidance - Q2 2025 net sales reached $1063 million[59], with an adjusted EBITDA of $246 million[59] and an adjusted EBITDA margin of 231%[59] - Year-to-date 2025 net sales totaled $2033 million[59], with an adjusted EBITDA of $502 million[59] and an adjusted EBITDA margin of 247%[59] - Fiscal year 2025 net sales are projected to be between $410 million and $431 million[63], representing a -3% to +2% change compared to fiscal year 2024[63] - The company anticipates an adjusted gross profit margin of 705% to 715%[63] and an adjusted EBITDA margin of 20% to 22%[63] for fiscal year 2025[63] Strategic Focus - The company is focused on three key priorities: generating brand demand, harnessing innovation, and executing with excellence[28] - The company is in phase 3 of brand building, focusing on "Building the Content Engine"[29] - The company is reconnecting with the Pro segment, emphasizing the science-led revolution in haircare[46, 47] Market & Category - Premium haircare is in its early stages with substantial room for growth[16] - Premium haircare represents 47% of the haircare market, compared to 20% for the rest of the beauty market[15] - The company estimates a 6-7% CAGR for premium hair from 2024-2028[15]