Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $74.5 million, with adjusted EBITDA of $19.3 million, reflecting a 1.5% increase year-over-year [18] - Adjusted EBITDA margin improved to 25.9%, an increase of 164 basis points compared to Q1 2024 [18] - Adjusted diluted EPS was reported at $0.24 [18] - Revenue excluding marketing funds decreased by 4.3% year-over-year, primarily due to a 3.2% decline in organic growth and adverse foreign currency movements of 1.1% [18] Business Line Data and Key Metrics Changes - The mortgage segment continues to face challenges, impacting revenue, with expectations for recovery taking several quarters [18] - Despite the decline in organic growth, higher broker fees partially offset the negative trends [18] - The company experienced a 10% growth in global agent count in Q1 2025 [12] Market Data and Key Metrics Changes - The U.S. agent count showed signs of stabilization, with April 2025 being the best month of April since 2022, despite a slight decline [54] - The overall real estate market remains under pressure, but the company believes its agents are better positioned due to their productivity and trust [52][78] Company Strategy and Development Direction - The company is focused on operational excellence, enhancing profitability, and building a strong foundation for long-term success [4][8] - New initiatives include the Aspire onboarding program aimed at attracting and developing top-producing agents, and the Max Engage social influencer platform to modernize branding [9][10] - The company is committed to transparency and fairness in real estate, supporting the recent changes in the National Association of Realtors' policies [5][6][83] Management's Comments on Operating Environment and Future Outlook - The macroeconomic situation and real estate market are characterized by uncertainty, with various factors influencing performance [5] - Management expressed optimism about ongoing initiatives and the potential for revenue growth in the second half of 2025 [21] - The company expects agent count to increase by 1.5% to 2.5% in Q2 2025 compared to the same period in 2024 [22] Other Important Information - The company announced the retirement of Ward Morrison, who has been with REMAX for 20 years, marking a significant transition in leadership [23][60] - The company is actively searching for new leadership for the Motto and Weimlo segments following Morrison's departure [61] Q&A Session Summary Question: Concerns about franchise sales decline - Management noted that the decline in franchise sales was partly due to the wind down of prior technology acquisitions and a successful annual conference despite lower attendance [25][26] Question: Operational expenses management - Management highlighted their focus on strategic spending and cost control, with expectations for continued efficiency improvements [33][34] Question: Feedback on the Aspire program - Early feedback on the Aspire program has been positive, with higher than expected adoption rates, indicating a widening interest in the REMAX brand [50][52] Question: Revenue trends in the Motto segment - The decline in revenue for the Motto segment is primarily driven by macroeconomic factors, with stabilization observed on a sequential basis [57][58] Question: International agent growth momentum - The growth in international agents is attributed to outstanding operators and brand momentum in various markets [70][72] Question: Market share trends in the U.S. - The company is monitoring market share across multiple dimensions, noting that their agents are more productive than the industry average [77][78] Question: NAR's clear cooperation policy impact - The company supports transparency and believes in the broad distribution of listings, aligning with consumer interests [81][83]

Financial Data and Key Metrics Changes - Net income for Q1 2025 totaled $4,700,000, a significant increase from $2,800,000 in the same period last year, representing a growth of 68% [5][9] - Diluted earnings per share rose to $0.81, marking a 69% increase year-over-year [5] - Return on average assets was 1.21% and return on average equity was 13.71% [5] - Efficiency ratio improved to 64.1% in Q1 2025 [5] Business Line Data and Key Metrics Changes - Total gross loans increased by $22,600,000 or 8.7% annualized, reaching nearly $1,100,000,000 [6][13] - Loan growth was primarily driven by commercial real estate and construction loans, which increased by $14,400,000 and $3,300,000 respectively [14] - Non-interest income totaled $3,400,000, a slight decline compared to the previous quarter [12] Market Data and Key Metrics Changes - Deposit balances increased by $7,100,000, totaling $1,300,000,000 at the end of Q1 2025 [15] - Average interest-bearing deposits grew by $34,800,000 during the quarter [16] - The loan-to-deposit ratio stood at 79.5%, indicating sufficient liquidity for continued loan growth [16] Company Strategy and Development Direction - The company remains focused on serving business owners across Kansas, emphasizing relationship banking [6] - There is a commitment to maintaining solid credit quality amid economic uncertainties [24] - The company aims to strengthen existing customer relationships and grow lending and fee businesses across all markets [25] Management's Comments on Operating Environment and Future Outlook - Management noted a general level of uncertainty among customers but expressed confidence that uncertainties will resolve over time [21] - The economic landscape in Kansas is described as healthy, with an unemployment rate of 3.8% [21] - The company is well-positioned for future growth due to its operational success and high-quality banking products [25] Other Important Information - The Board of Directors declared a cash dividend of $0.21 per share, marking the 95th consecutive quarterly cash dividend since the company's formation [7] - Stockholders' equity increased by $6,400,000 to $142,700,000, with a book value of $24.69 per share [16][17] Q&A Session Summary Question: No questions were asked during the Q&A session - The operator indicated that there were no questions at this time, and the call was handed back to management for closing comments [26]

Financial Data and Key Metrics Changes - In Q1 2025, revenue increased by $28 million or 4% year-over-year, while gross profit rose by $30 million or 54% [18] - Adjusted net income improved by $9 million, and adjusted EBITDA increased by $14 million, achieving positive operating cash flow of $4 million [18][22] - The Construction segment's revenue increased by $19 million or 3% year-over-year to $615 million, with gross profit improving by $29 million to $85 million, resulting in a gross profit margin of 14% [19][20] Business Line Data and Key Metrics Changes - The Materials segment's revenue increased by $8 million year-over-year to $85 million, with gross loss decreasing by $1 million to a loss of $2 million [22] - The Construction segment is expected to see year-over-year revenue growth increase in the second and third quarters due to a busy construction season ahead [20] - The average selling prices for aggregates are expected to increase in the high single digits, while asphalt prices are projected to rise in the low single digits [14] Market Data and Key Metrics Changes - The company reported a record CAP of $5.7 billion, an increase of $444 million in Q1 [15] - Strong bidding environments in public markets, supported by federal funding and healthy state budgets, are expected to continue driving opportunities [32] - The federal business has seen significant work, particularly in Guam and Texas, indicating strong market demand [54][55] Company Strategy and Development Direction - The company is focused on strategically investing in its materials business to drive volumes and higher margins, with a target of completing two to three M&A deals in 2025 [11][12] - The company aims to derisk its project portfolio by avoiding long-term design-build mega projects and focusing on locking in pricing at bid time [10] - Continued emphasis on operational excellence and a high-quality project portfolio is expected to support growth and margin expectations [16][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2025 guidance and 2027 financial targets despite macroeconomic uncertainties [5][6] - The company has not experienced significant impacts from tariffs to date, although it continues to monitor the situation closely [25][7] - The outlook for 2025 remains positive, with expectations for strong demand in both public and private sectors [26][32] Other Important Information - The company has invested significantly in its materials business, increasing reserves by 56% to 1.6 billion tons and adding new aggregate and asphalt plants [13] - The first quarter typically sees slower cash flow, but the company generated $4 million in operating cash flow, slightly better than expected [23] - The company maintains a strong balance sheet with cash and marketable securities of $513 million and debt largely unchanged at $740 million [23] Q&A Session Summary Question: Active bidding environment and trajectory of CAP - Management noted a strong public market environment, with CAP reflecting increased bidding and higher margins than previous years [30][31] Question: Higher profitability in the Construction segment despite weather challenges - Management attributed higher profitability to improved execution and a focus on higher quality projects, expecting continued margin improvement throughout 2025 [34][35] Question: Diverging movements in project types and CAP quality - Management indicated that while bid-build projects grew, best value projects are larger and more complex, maintaining a healthy mix in the project portfolio [40][41] Question: Federal business and regional performance post-acquisition - Management highlighted strong performance in the federal business and successful integration of acquisitions in the Southeast, with confidence in future growth [55][56] Question: Cash gross profit per ton compared to peers - Management acknowledged differences in cash gross profit per ton due to geographic factors and product mix, with expectations for margin expansion in 2025 [66][69] Question: Demand cadence and April performance - Management reported strong demand in January and February, with April showing continued strength despite some weather-related slowdowns in March [72][75] Question: Tariff impacts on equipment costs - Management anticipates some increases in equipment and parts costs due to tariffs but has been proactive in managing capital expenditures [76][77]

Financial Data and Key Metrics Changes - Net income for Q1 2025 totaled $4,700,000, a significant increase from $2,800,000 in the same period last year, representing a growth of 68% [4][8] - Diluted earnings per share rose to $0.81, marking a 69% increase year-over-year [4] - Return on average assets was 1.21% and return on average equity was 13.71% [4] - Efficiency ratio improved to 64.1% in Q1 2025 [4] Business Line Data and Key Metrics Changes - Total gross loans increased by $22,600,000 or 8.7% on an annualized basis, reaching nearly $1,100,000,000 [5][12] - Loan growth was primarily driven by commercial real estate and construction loans, which increased by $14,400,000 and $3,300,000 respectively [13][17] - Non-interest income totaled $3,400,000, a slight decline compared to the previous quarter [11] Market Data and Key Metrics Changes - Deposits totaled $1,300,000,000 at the end of Q1 2025, with an increase of $7,100,000 during the quarter [13] - Interest checking and money market deposits declined by $23,500,000, while non-interest checking increased by $16,900,000 [14] Company Strategy and Development Direction - The company remains focused on serving business owners across Kansas, emphasizing relationship banking [5] - There is a commitment to maintaining solid credit quality amid economic uncertainties [21] - The company aims to strengthen existing customer relationships and grow lending and fee businesses across all markets [21] Management Comments on Operating Environment and Future Outlook - Management noted a general level of uncertainty among customers but expressed confidence that uncertainties will resolve over time [20] - The economic landscape in Kansas is described as healthy, with an unemployment rate of 3.8% [19] - The company is well-positioned for future growth due to its operational success and high-quality banking products [21] Other Important Information - The Board of Directors declared a cash dividend of $0.21 per share, marking the 95th consecutive quarterly cash dividend since the company's formation [6] - The allowance for credit losses stood at $12,800,000, representing 1.19% of gross loans [11][19] Q&A Session Summary Question: No questions were asked during the Q&A session - There were no questions from participants during the call, leading to a prompt conclusion of the session [24]

Financial Data and Key Metrics Changes - For the first quarter of 2025, the company reported core FFO of $0.19 per diluted share, with same store property cash NOI up 0.4% excluding nonrecurring revenue items from the previous year [26][27] - Expenses increased approximately 5% year over year, driven by real estate taxes, payroll costs, and repair and maintenance costs, partially offset by higher tenant reimbursement income and growth in rental revenue [27][28] Business Line Data and Key Metrics Changes - The Manhattan office portfolio is 93% leased, with a slight decrease from 94.2% in the previous quarter, and the company expects leasing and occupancy gains for the full year [12][19] - The Observatory generated NOI of approximately $15 million, with a 7% year-over-year change attributed to the shift of the Easter holiday to the second quarter and adverse weather conditions [28] - The multifamily portfolio achieved 99% occupancy and 8% year-over-year rent growth in the first quarter [15][16] Market Data and Key Metrics Changes - The leasing environment in New York City remains active, particularly for modernized buildings with good amenities, as evidenced by the company leasing approximately 230,000 square feet in the first quarter [6][12] - The company has seen a healthy pipeline of leasing activity, with 160,000 square feet of leases in negotiation and several proposals exchanged with tenant prospects across various industries [13][14] Company Strategy and Development Direction - The company focuses on five priorities: leasing space, selling tickets to the Observatory, managing the balance sheet, identifying growth opportunities, and achieving sustainability goals [11][24] - The company aims to maintain a strong balance sheet with no floating rate debt exposure and a well-laddered debt maturity schedule, positioning itself to weather economic uncertainties [23][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledges potential macroeconomic risks but emphasizes the company's strong position due to long-term leases, high lease percentages, and diverse income streams [5][6] - The company remains optimistic about its leasing and occupancy gains, with expectations for core FFO guidance of $0.86 to $0.89 for 2025 [28][29] Other Important Information - The company repaid $100 million in Series A unsecured notes and $120 million in revolving credit facility balance during the quarter, and it has been actively repurchasing shares [24] - The company is prepared to act on investment opportunities across retail, multifamily, and office sectors, focusing on New York City [25] Q&A Session Summary Question: How are leasing conversations unfolding with different tenant categories amid current economic conditions? - Management reported no changes in lease negotiations over the last sixty days, with strong activity across various industries [32][33] Question: What is the expected trend for CapEx in the coming years? - Management indicated a reduction in CapEx is expected as the portfolio stabilizes, with a good run rate established in the first quarter [35][39] Question: How is leasing activity in Williamsburg progressing? - Management noted strong activity in Williamsburg, with recognizable brand names showing interest in available spaces [41][43] Question: How does the company prioritize capital allocation opportunities? - The company balances capital allocation between maintaining operating runway, potential buybacks, and investment opportunities as they arise [44][46] Question: What is the company's perspective on tourism and potential impacts from geopolitical tensions? - Management has not detected significant shifts in demand and remains focused on operational discipline and marketing strategies to mitigate any potential downturns [56][58]

Financial Data and Key Metrics Changes - The company originated $27.9 million in loans held for investment, a 23% decrease from $36.4 million in the prior sequential quarter [5] - Loan principal payments and payoffs were $23 million, down 33% from $34.3 million in the previous quarter [5] - Non-performing assets decreased to $1.4 million from $2.5 million, indicating improved asset quality [6] - The allowance for credit losses to gross loans held for investment decreased from 66 basis points to 62 basis points [9] - Net interest margin increased by 11 basis points to 3.02% compared to 2.91% in the previous quarter [9] Business Line Data and Key Metrics Changes - Loans held for investment increased by approximately $5.4 million compared to the previous quarter, driven by an increase in single-family loans [6] - There were declines in multifamily, commercial real estate, construction, and commercial business loans [6] - The company has seen more consumer demand for single-family adjustable-rate mortgage products due to higher fixed-rate mortgage interest rates [6] Market Data and Key Metrics Changes - Economic uncertainty has increased due to current fiscal policy, impacting real estate investor activity [6] - The company noted a shift in consumer demand towards adjustable-rate mortgage products as fixed rates rise [6] Company Strategy and Development Direction - The company aims for disciplined growth of the loan portfolio, recognizing the shift to looser monetary policy [13] - The strategy includes maintaining cash dividends and utilizing stock buyback programs as a capital management tool [14] - The company is focused on improving operating efficiencies to lower operating expenses [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for net interest margin expansion in the upcoming quarter, albeit at a slower pace than the current quarter [11] - The company is monitoring commercial real estate loans, particularly those secured by office buildings, and remains confident in their performance [7] - Management acknowledged the challenges posed by higher mortgage rates and economic uncertainty but indicated a commitment to growth [6][13] Other Important Information - The company repurchased approximately 52,000 shares of common stock in the March quarter [14] - For the fiscal year to date, the company has distributed approximately $2.8 million in cash dividends and repurchased approximately $3.1 million worth of common stock [14] Q&A Session Summary Question: Inquiry about CD growth in the quarter - Management indicated that the growth was due to a remix of the liability profile and the opening of a government deposit desk, allowing for liquidity to pay down Federal Home Loan Bank advances [17] Question: Were new CDs at a better rate than wholesale market? - Management noted that the rates were similar to wholesale, and the strategy was adjusted due to lower short-term rates [18] Question: Thoughts on prepayment activity over the next twelve months? - Management stated that prepayment activity is difficult to predict, with lower prepayments observed in the March quarter due to mortgage rate volatility [28] Question: Capital allocation and potential buyback adjustments? - Management emphasized the importance of maintaining capital during uncertainty but indicated that if stock prices decline, they would consider repurchasing more shares [32][34] Question: Changes in loan competition behavior? - Management noted no significant changes in competition but acknowledged aggressive pricing in the multifamily loan market [35][36]

Financial Data and Key Metrics Changes - The company achieved net income of $23.6 million, representing earnings per share of $0.83 and a return on assets (ROA) of 1.2% [5] - Net interest margin remained strong at 4.07%, marking ten consecutive quarters above 4% [14] - Total new loan fundings totaled $399 million in Q1, up 48% from the previous quarter and up 37% year-over-year [11] - Deposits increased by approximately $200 million or 12% annualized [11] Business Line Data and Key Metrics Changes - Loan growth was primarily driven by the commercial and industrial (C&I) portfolio, which saw a 7% annualized increase [10] - Service fee income represented 22.6% of total revenues, with a slight increase over the last quarter [5] - Consumer deposit service revenues decreased by 9% due to lower NSF activity [17] Market Data and Key Metrics Changes - The company noted strong loan growth in high-growth markets, particularly in the C&I sector [10] - The credit quality remained stable, with nonperforming loans as a percentage of total loans increasing to 1.21% [20] - The company experienced a decline in its commercial real estate portfolio, impacting overall loan growth [10] Company Strategy and Development Direction - The company aims to focus on relationship-based banking and is optimistic about growth opportunities in its markets [6][8] - There is a commitment to maintaining a strong capital position and sound credit risk management [9] - The company is open to opportunistic M&A but remains cautious about potential risks in the current market environment [22][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the U.S. economy, particularly in their operational regions [8] - There is an acknowledgment of macroeconomic uncertainties impacting consumer investment and spending [15] - The company expects mid-single-digit growth for both loans and deposits for the full year [13] Other Important Information - The provision expense for the first quarter was $3.8 million, resulting in an allowance for credit loss ratio of 1.42% [19] - The company anticipates net charge-offs for the full year to be in the high teens to low 20s range in basis points [21] - The tangible book value per share improved to $34.88, with a CET1 ratio of 13.26% [21] Q&A Session Summary Question: What are the drivers behind the lower expense guidance for 2025? - The lower expense guidance is linked to macroeconomic uncertainty and a slowdown in mortgage activity, impacting variable compensation [26][27] Question: How does the current environment impact thoughts around M&A? - The company remains opportunistic regarding M&A but is cautious about taking on risks that could jeopardize shareholder value [28][66] Question: Can you provide insights on loan growth and competition? - Loan growth remains strong, particularly in the C&I space, with competitive pricing and a robust pipeline for Q2 [36][39] Question: What is the outlook for deposit costs and growth in Southern California? - The company expects stable deposit costs but acknowledges competitive pressures; Southern California efforts have seen strong deposit growth [40][43] Question: Can you elaborate on the higher nonaccrual loan mentioned? - The nonaccrual loan was a $13 million credit with cross-border exposure in the manufacturing sector, contributing to the increase in nonperforming loans [70][71]

Financial Data and Key Metrics Changes - The company originated $27.9 million in loans held for investment, a 23% decrease from $36.4 million in the prior sequential quarter [6] - Loan principal payments and payoffs were $23 million, down 33% from $34.3 million in the previous quarter [6] - Non-performing assets decreased to $1.4 million from $2.5 million in the prior quarter [8] - The allowance for credit losses to gross loans held for investment decreased from 66 basis points to 62 basis points [10] - Net interest margin increased by 11 basis points to 3.02% compared to 2.91% in the previous quarter [10] Business Line Data and Key Metrics Changes - Loans held for investment increased by approximately $5.4 million compared to the previous quarter, with an increase in single-family loans [7] - There were declines in multifamily, commercial real estate, construction, and commercial business loans [7] - The company has seen more consumer demand for single-family adjustable-rate mortgage products due to higher fixed-rate mortgage interest rates [7] Market Data and Key Metrics Changes - Economic uncertainty has increased due to current fiscal policy, impacting real estate investor activity [7] - The company noted that the current credit quality remains strong, with only $199,000 of early-stage delinquencies reported [9] Company Strategy and Development Direction - The company aims for disciplined growth of the loan portfolio, recognizing a shift to looser monetary policy [14] - The strategy includes maintaining cash dividends and utilizing stock buyback programs as a responsible capital management tool [16] - The company is focused on improving operating efficiencies to lower operating expenses [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for net interest margin expansion in the upcoming quarter, albeit at a slower pace than the current quarter [12] - The company is monitoring the impact of mortgage rate volatility on prepayment activity, which has historically affected their loan portfolio [31] - Management indicated that they are prepared to adjust their lending strategy based on market conditions and competitive pricing [43] Other Important Information - The company repurchased approximately 52,000 shares of common stock in the March quarter [16] - For the fiscal year to date, the company has distributed approximately $2.8 million in cash dividends and repurchased approximately $3.1 million worth of common stock [16] Q&A Session Summary Question: Inquiry about CD growth in the quarter - Management explained that they remixed the liability profile and opened their government deposit desk, accumulating government deposits which provided liquidity to pay down Federal Home Loan Bank advances [19] Question: Were the new CDs at a better rate than wholesale market? - Management noted that the rates were similar to wholesale, and the strategy change was due to a decrease in short-term rates [20] Question: Thoughts on prepayment activity over the next twelve months? - Management indicated that prepayment activity is difficult to predict, but lower mortgage rates tend to increase activity [31] Question: Capital allocation and potential buyback adjustments? - Management stated that while having more capital is preferable during uncertainty, they have already set their capital plans for the fiscal year [37] Question: Changes in loan competition behavior? - Management noted that they have not seen significant changes in competition, although some aggressive pricing in multifamily loans has been observed [39]

Financial Data and Key Metrics Changes - The company ended the fiscal year with an outstanding letter of $1,220,000,000, representing a 4% decrease year over year, while the customer base increased by 3.5%, marking the first year of customer growth since fiscal year 2022 [3][4] - The average balance per customer decreased by 7.3% year over year, following a 7.1% decrease in the previous year [4] - The fourth quarter EPS benefited from a $2,800,000 after-tax accrual release of share-based compensation expense, equating to approximately $0.38 per share [7] Business Line Data and Key Metrics Changes - Non-refinance loan volume increased by 12.6% year over year, following a 10% increase in the previous year, while maintaining high credit quality and low first payment default rates [8] - Refinance loan volume improved slightly by 3% year over year, with a temporary dip in March that rebounded in April [10] - The portfolio composition shifted towards small loans, with large loans decreasing from nearly 60% two years ago to 48% at the end of fiscal year 2025 [11][12] Market Data and Key Metrics Changes - The company experienced a 25% increase in tax return revenue, amounting to nearly $7,000,000 in the fourth quarter [7] - The approval rates for new customers increased by around 50% compared to the third and fourth quarters of fiscal year 2024 [12] Company Strategy and Development Direction - The company is focusing on returning to its roots by emphasizing small loans, which historically made up a larger portion of its portfolio [11][17] - A new credit card product is being piloted internally, with plans for wider testing and eventual customer offering later in the fiscal year [12][13] - The strategy aims to align yield with risk, manage both installment and revolving credit, and expand market reach [13] Management's Comments on Operating Environment and Future Outlook - Management has not observed significant changes in consumer demand or payment behavior despite external economic factors [16] - There is optimism regarding the impact of improved training and loan servicing management on delinquency rates [6] - The company expects natural reductions in annualized charge-off rates with normal portfolio growth [4] Other Important Information - The company has repurchased over $115,000,000 of bonds, with plans for more repurchases depending on negotiations with banks [24][25] Q&A Session Summary Question: Any shift in consumer behavior since mid to late February? - Management indicated no significant increase or decrease in demand or change in payments [16] Question: Is the shift to smaller loans due to underwriting or consumer demand? - The shift is primarily a return to the company's historical focus on small loans rather than a change in consumer demand [17][18] Question: What is driving the strong revenue growth in tax preparation? - The growth is attributed to market research, increased pricing, and minimal reduction in demand during tax season [19]

Financial Data and Key Metrics Changes - The company ended the fiscal year with an outstanding letter of $1,220,000,000, representing a 4% decrease year over year, while the customer base increased by 3.5%, marking the first year of customer growth since fiscal year 2022 [3] - The average balance per customer decreased by 7.3% year over year, following a 7.1% decrease in the previous year [4] - The fourth quarter EPS benefited from a $2,800,000 after-tax accrual release of share-based compensation expense, equating to approximately $0.38 per share [7] Business Line Data and Key Metrics Changes - Non-refinance loan volume increased by 12.6% year over year, following a 10% increase in the previous year, while maintaining high credit quality and low first payment default rates [8] - Refinance loan volume improved slightly by 3% year over year, with a temporary dip in March that rebounded in April [10] - The portfolio composition shifted towards small loans, with large loans decreasing from nearly 60% two years ago to 48% at the end of fiscal year 2025 [11] Market Data and Key Metrics Changes - The company experienced a 25% increase in tax return revenue, amounting to nearly $7,000,000 in the fourth quarter [7] - The approval rates for new customers increased by around 50% compared to the same quarters of fiscal year 2024, while maintaining low first payment default rates [12] Company Strategy and Development Direction - The company is focusing on returning to its roots by emphasizing small loans, which historically made up a larger portion of its portfolio [17] - A new credit card product is being piloted internally, with plans for wider rollout later in the fiscal year, aimed at better aligning yield with risk and expanding market reach [12][13] Management's Comments on Operating Environment and Future Outlook - Management has not observed significant changes in consumer behavior or demand since mid-February, despite external economic factors [16] - The company remains optimistic about the impact of improved training and loan servicing management on delinquency rates [6] Other Important Information - The allowance for losses decreased sequentially due to portfolio runoff [23] - Share repurchase expectations indicate a potential increase in activity, contingent on negotiations with banks and bond limitations [24] Q&A Session Summary Question: Any shift in consumer behavior since tariff noise began? - Management noted no significant increase or decrease in demand or changes in payments [16] Question: Is the shift to smaller loans due to underwriting or consumer demand? - The shift is primarily a strategic return to focusing on small loans rather than a change in consumer demand [17][18] Question: What is driving the strong revenue growth in tax preparation? - The growth is attributed to market research, increased pricing, and sustained demand during the tax season [19]