Market Sentiment - The market is currently reacting positively to potential negotiations in Washington, indicating optimism for a resolution to the government shutdown [1] - There is a shift in sentiment as investors are closing out their short positions, suggesting a more bullish outlook for the upcoming week [3] Economic Indicators - The market has been heavily influenced by growth dynamics and the Federal Reserve's actions, particularly following the last jobs report in early September [3] - Recent data, including challenger data and ADP private jobs data, suggests that the Fed may continue to cut rates, with a potential cut in December still on the table [6][7] Sector Performance - Consumer cyclical stocks, particularly in the restaurant sector, have struggled post the last jobs report, contrasting with the strong performance of AI-related stocks, which have risen 20% since early September [3][5] - The current economic environment is characterized by a K-shaped recovery, where the top half, benefiting from AI advancements, contrasts sharply with the bottom half, which includes struggling sectors like real estate and restaurants [4] Federal Reserve Influence - The Federal Reserve is in a challenging position, needing to stimulate the economy for the lower half of the K-shaped recovery while being cautious of inflating a bubble in the AI sector [4] - The market's recent volatility is attributed to the Fed's actions and the need for more support to stabilize the economy [4]

Financial Data and Key Metrics Changes - For Q4 2025, ending AUM reached $1.66 trillion, a 3.1% increase from the prior quarter, while average AUM increased by 4.4% to $1.63 trillion [31] - Adjusted operating revenues increased by 13.9% to $1.82 billion from the prior quarter, driven by elevated performance fees and higher average AUM [31] - Adjusted net income and adjusted diluted earnings per share increased by 35.7% and 36.7% from the prior quarter to $357.5 million and $0.67, respectively [32] Business Line Data and Key Metrics Changes - In public markets, over 50% of mutual funds, ETFs, and composites outperformed peers and benchmarks across all standard time periods, indicating improved investment performance [9] - Private markets saw fundraising of $22.9 billion, contributing to a total of $270 billion in alternative AUM, with expectations to increase fundraising to between $25 billion and $30 billion in fiscal 2026 [11] - The SMA business grew at a 21% compound annual rate since 2023, with AUM of $165 billion across more than 200 strategies [15] Market Data and Key Metrics Changes - Internationally, Franklin Templeton managed nearly $500 billion in assets, achieving $10.7 billion in positive long-term net flows in markets outside the U.S. [26] - Fixed income net inflows were $17.3 billion for the year, with positive net flows for seven consecutive quarters [28] - Alternatives and multi-asset generated $25.7 billion in net flows for the year, reflecting broad-based client demand [29] Company Strategy and Development Direction - The company is focused on deepening client partnerships, broadening investment capabilities, and strengthening its diversified model as part of a five-year plan [7] - Franklin Templeton aims to democratize private assets and expand its wealth management offerings, targeting to double Fiduciary's AUM by 2029 [20] - The company is investing in innovation, particularly in digital assets and AI, to redefine how investors access opportunities and improve operational efficiency [22] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the strong public equity gains and the overall constructive view of private markets, despite a complex geopolitical backdrop [24] - The company anticipates continued growth in alternatives, particularly in the retail market, driven by partnerships and innovative product offerings [13] - Management highlighted the importance of selectivity and discipline in navigating the current market dynamics, which present opportunities across public and private markets [25] Other Important Information - Franklin Templeton was named 2025 Asset Manager of the Year in the $500 billion-plus AUM category, reflecting its leadership in innovation and investment advisory solutions [7] - The company has integrated certain corporate functions to drive efficiency and enhance client service, particularly in response to challenges faced by Western Asset Management [29] - The firm is focused on capital management, returning $930 million to shareholders through dividends and share repurchases [36] Q&A Session Summary Question: Fundraising target for fiscal 2026 - The target is between $25 billion and $30 billion, with contributions expected from various funds including Lexington, Clarion, and Alcentra [43] Question: Expense guidance for 2026 - The company expects to achieve $200 million in cost savings for 2026, with a focus on maintaining or reducing total expenses compared to fiscal 2025 [44][46] Question: Infrastructure product pipeline - The company is building a fund around partnerships with DigitalBridge, Copenhagen Infrastructure Partners, and Actis to participate in infrastructure deals [48] Question: AI and tokenization opportunities - The company is leading in tokenization, offering unique features for money market funds and exploring new distribution capabilities through partnerships with exchanges like Binance [51][53] Question: Update on Lexington flagship fund - The target size for the Lexington flagship fund is about $25 billion, with expectations for the first close in the first half of 2026 [54]

Core Insights - Jim Cramer has highlighted Amazon.com, Inc. (NASDAQ:AMZN) in recent discussions, particularly focusing on its strategic moves in AI and cloud computing [2][3] Group 1: Amazon's Strategic Moves - Amazon's decision to invest in in-house Trainium AI chips has raised questions about its impact on share performance [2] - The company surprised the market with a $38 billion deal for its cloud computing business with OpenAI, indicating a strong commitment to AI [2] - Cramer expressed surprise at Amazon's significant investment in NVIDIA GPUs, suggesting that the company has more resources allocated to AI than previously thought [2][3] Group 2: Market Position and Growth - Following a strong earnings report, Amazon Web Services (AWS) showed growth rates of 17% after a previous 20% decline, indicating a recovery in its cloud business [3] - Cramer noted that Amazon was previously viewed as lagging behind competitors, but recent developments have shifted perceptions, highlighting its potential in the AI space [3]

Group 1 - Jim Cramer has highlighted Domino's Pizza, Inc. (NASDAQ:DPZ) as a strong investment opportunity within the restaurant sector, particularly appealing to budget-conscious consumers seeking affordable meals [2][4] - Cramer commended CEO Russell Weiner for successfully identifying the optimal price point for pizzas, contributing to Domino's strong performance despite challenges in the broader industry [2][4] - Cramer emphasized that Domino's is a standout choice in the pizza category, suggesting it is a stock worth owning [4] Group 2 - The article mentions that while Domino's shows potential, there are AI stocks that may offer higher returns with limited downside risk, indicating a competitive investment landscape [4]

Core Viewpoint - The Clorox Company (NYSE:CLX) reported a significant revenue decline of 19% to $1.43 billion in its fiscal first quarter, attributed to an ERP software change, which has led to a new trading environment where consumer goods stocks are less favored by investors [2][3]. Financial Performance - Clorox's revenue dropped 19% to $1.43 billion, surpassing analyst estimates of $1.39 billion [2]. - The company's stock has declined over 30% for the year, reflecting broader market concerns regarding consumer packaged goods amid economic uncertainties [3]. Market Sentiment - Jim Cramer noted that the current market environment has shifted, with investors less willing to invest in consumer goods stocks during economic worries, contrasting with past behaviors [3]. - Cramer suggested that the recent dip in Clorox's shares may have reached a bottom, indicating potential for recovery as the stock was perceived to be undervalued after a poor quarter [2][3].

Financial Performance - Revenues for Q3 2025 reached $21 million, a 44% increase compared to $14.6 million in Q3 2024[31] - Gross profit for Q3 2025 was $9.9 million, a 73% increase from $5.7 million in Q3 2024[31] - Net income for Q3 2025 was $7.7 million ($0.05 per share), a 559% increase compared to $1.2 million ($0.01 per share) in Q3 2024[31] - Adjusted earnings for Q3 2025 were $11.6 million ($0.07 per share), a 134% increase from $5.0 million ($0.04 per share) in Q3 2024[31] - Cash flow from operations for Q3 2025 was $8.3 million ($0.05 per share), a 101% increase from $4.1 million ($0.03 per share) in Q3 2024[31] - Free cash flow for Q3 2025 was $4.5 million, an 89% increase from $2.4 million in Q3 2024[31] Production and Costs - Mill throughput in Q3 2025 was 21% higher than in Q3 2024[23] - Cash cost per silver equivalent ounce sold in Q3 2025 was $17.09, a 14% increase compared to Q3 2024[37] - All-in sustaining cost per silver equivalent ounce sold in Q3 2025 was $24.06, a 9% increase compared to Q3 2024[37] Balance Sheet - The company had $57.3 million in cash and $50.8 million in working capital as of September 30, 2025[30]

Retail Banking Performance - PNC Retail Banking's YTD average deposits reached $243 billion, accounting for 56% of total PNC deposits[8] - YTD average loans amounted to $97 billion, representing 30% of total PNC loans[8] - LTM revenue totaled $15 billion, contributing 54% of business segment revenue[8] - Retail Banking Pretax, Pre-Provision Earnings (PPNR) increased significantly from $18 billion in YTD 2022 to $54 billion in YTD 2025[8, 30] Client Base Growth and Expansion - Consumer DDAs (demand deposit accounts) have grown from 93 million in 2022 to 97 million as of 9/30/2025, a 11% increase[14] - PNC is increasing new branch builds to >300 by 2030 to drive density[16] - PNC is expanding into new markets, with significant branch builds planned in Miami (+40), Atlanta (+25), and Charlotte (+25)[16] Digital and Customer Experience Investments - 77% of consumer DDA households are digitally active[18] - Branch Channel NPS (Net Promoter Score) has increased by 10 points from 71 in 2022 to 81 in YTD 2025[18] - New card suite, digital direct deposit, and new online banking were launched in 2025[18] Wealth Management and Credit Card Growth - Client assets in Wealth Management have grown from $44 billion in 2016 to $89 billion as of 9/30/2025, representing an 8% CAGR[20] - Wealth Management revenue has increased from $03 billion in 2016 to $08 billion in 2025 (annualized), representing a 10% CAGR[20]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $767 million, slightly up sequentially and in line with guidance, but down 1.8% year-over-year from $781 million in Q3 2024 [5][11] - Adjusted EBITDA for the quarter was $40 million, up from $32 million in Q3 2024, with an adjusted EBITDA margin of 5.2%, up 110 basis points year-over-year [6][12] - The net leverage ratio increased to 3.2 times due to cash flow items, with total cash on the balance sheet at approximately $264 million [15][16] Business Line Data and Key Metrics Changes - Commercial segment adjusted revenue was $367 million, down 4.7% year-over-year, primarily due to volume declines from the largest client, although the top 25 commercial accounts grew year-over-year [12][13] - Government segment adjusted revenue was down 6.7% at $238 million, attributed to implementation impacts and a client canceling an implementation [13] - Transportation segment adjusted revenue increased by 14.9% year-over-year to $162 million, driven by strong equipment sales in the international transit business [14] Market Data and Key Metrics Changes - New business Annual Contract Value (ACV) signed in Q3 was $111 million, consistent with the prior year, while Year-to-date new business ACV is up 5% compared to the same period in 2024 [10] - The qualified ACV pipeline remains strong at $3.4 billion, up 9% year-over-year, driven by opportunities in the federal space [11] Company Strategy and Development Direction - The company is focused on portfolio rationalization and enhancing its technology capabilities, particularly in AI initiatives [7][19] - A new board member with significant industry experience was added to strengthen the board [8] - The company is revising its commercial go-to-market strategy to improve client penetration and sales execution [21][47] Management Comments on Operating Environment and Future Outlook - Management noted the impact of the government shutdown on deal timing but expressed confidence in achieving adjusted EBITDA margin targets between 5% and 5.5% for the year [18][20] - The company anticipates that once the government shutdown concerns are resolved, cash flow metrics will improve [7][16] - Management remains optimistic about future growth, citing pent-up demand and ongoing sales pipeline expansion [23][24] Other Important Information - The company completed refinancing of its revolving credit facilities, simplifying its balance sheet [15][22] - Adjusted free cash flow for the quarter was negative $54 million, impacted by timing items related to contract amendments and post-implementation phases [16] Q&A Session Summary Question: How much of the pipeline actually closed this quarter? - Management indicated that the government shutdown affected the timing of deal closures, but they expect a gradual improvement as approvals resume [29] Question: How is productivity or quality gains from GenAI being measured? - Management highlighted the use of GenAI in fraud reduction and customer experience improvements, with ongoing evaluations of how to share benefits with clients [30][31] Question: Are there any stranded costs left to tackle? - Management confirmed that they are through the initial phase of stranded costs and are continuously optimizing costs across the organization [35] Question: Are there changes to contract clauses to reduce churn risk? - Management stated that the revenue stream remains unaffected by the government shutdown, and they do not see a need to change the contract model at this time [36] Question: What does the client mix look like for AI endeavors? - Management noted that healthcare is a significant focus area for AI initiatives, with opportunities in both commercial and government sectors [43][44] Question: What are the growth opportunities on the commercial side? - Management emphasized the need for better client penetration and the deployment of new software licensing opportunities to drive growth [46][47]

Financial Data and Key Metrics Changes - In Q3 2025, revenue was $519 million, a decrease of 1.9% from $529 million in the prior year [21] - Adjusted EBITDA was $43 million, or 8.4% of revenue, down from $50 million, or 9.5% [22] - Operating income decreased to $29 million, or 5.6% of revenue, compared to $34 million, or 6.4% [22] - Net debt was reduced by $119 million year-over-year, totaling $813 million [32] Business Segment Data and Key Metrics Changes - In the Engage segment, Q3 revenue decreased by 4% to $397 million, with operating income at $17 million, or 4.3% of revenue [22] - The Digital segment saw a revenue increase of 5.4% to $122 million, but operating income decreased to $12 million, or 9.5% of revenue [26] - Recurring revenue in the Digital segment declined by 9.8% due to the end-of-life status of a premise contact center solution [26] Market Data and Key Metrics Changes - The Engage segment's backlog is $1.66 billion, representing 102% of the 2025 revenue guidance midpoint, up from 99% in the prior year [25] - The Digital backlog is $444 million, or 95% of the 2025 revenue guidance midpoint, an increase from 92% year-over-year [30] Company Strategy and Development Direction - The company is focusing on AI-enabled customer experience (CX) solutions, blending technology with human interaction to drive growth [4][5] - Investments are being made in expanding executive leadership and enhancing AI capabilities to improve operational effectiveness [12][24] - The company aims to transition from traditional contact center solutions to AI-led consulting and journey orchestration [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to historical growth rates and margins despite current financial metrics not reflecting business momentum [19] - The company anticipates solid bottom-line growth in Q4 2025, driven by healthcare business and new client growth [34] - Management highlighted the importance of adapting to market dynamics and leveraging partnerships with hyperscalers for innovation [13][34] Other Important Information - Free cash flow was negative $10 million in Q3 2025, an improvement from negative $100 million in the prior year [30] - The company has approximately 1,700 full-time engineers focused on AI projects, indicating strong capabilities in this area [46] Q&A Session Questions and Answers Question: Can you walk through the significance of your role in the healthcare opportunity and the investments made? - The investments made in Q3 are expected to lead to double-digit growth in the healthcare seasonal business year-over-year, establishing strong client relationships for future growth [38][39] Question: What does the net economic scenario look like when integrating AI into client experiences? - Integrating AI is expected to drive positive economic impacts, allowing for outcome-based pricing that enhances margins by reducing labor costs [41][42] Question: Do you have the sales and delivery headcount needed for the shift into AI consulting? - The company has approximately 1,700 engineers with AI backgrounds and is confident in its capabilities to meet client demands [46][49] Question: How will you further improve free cash flow given the current revenue dynamics? - The focus is on debt reduction, improving working capital, and managing capital expenditures to enhance free cash flow generation [51][53]

Company Overview - Docebo's Annual Recurring Revenue (ARR) reached $235.6 million as of September 30, 2025[15] - Subscription revenues constitute 94% of the company's total revenues[15] - The company has a customer base of 3,978[15] - Docebo has over 900 employees[16] - The subscription revenue Compound Annual Growth Rate (CAGR) between fiscal year 2020 and 2024 was 36%[16] Market and Product Strategy - Docebo estimates the total addressable market (TAM) for global learning to be approximately $30 billion, with customer experience (CX) accounting for ~$18.5 billion and employee experience (EX) for ~$11.5 billion[22] - Approximately 60% of Docebo's customers utilize the platform for CX or hybrid training use cases[39] Financial Performance and Growth - Docebo's Q3 2025 subscription revenue growth was 10.3%[93] - The company's Q3 2025 Adjusted EBITDA margin was 20.1%[93] - Docebo's Q3 2025 Free Cash Flow margin was 9.2%[93] - The company has generated approximately $66 million in cash since 2016 while growing ARR to $235.6 million by the end of Q3 2025[97]