Financial Data and Key Metrics Changes - Transaction value for Q2 was $481 million, up 49% year over year, driven by a 71% increase in the P and C vertical, while the Health vertical saw a 32% decline [9][11] - Adjusted EBITDA for the quarter was $24.5 million, increasing 31% year over year, representing 62% of contribution, up from 56% in the prior year [10][12] - The company expects Q3 transaction value to be between $545 million and $570 million, representing a year-over-year increase of 23% at the midpoint [12][13] Business Line Data and Key Metrics Changes - The P and C vertical experienced significant growth, with transaction value increasing by 71% year over year, primarily from existing carriers [9][30] - The Health vertical's transaction value declined by 32% year over year, with expectations of continued declines in the near term [9][11] - The company anticipates a Q3 transaction value of approximately $18 million for the under-65 business, reflecting a 54% year-over-year decline [11] Market Data and Key Metrics Changes - The company noted that automotive tariffs are becoming more manageable, and the slowing rate increases are prompting carriers to focus on acquiring new customers [7][23] - The competitive landscape in the auto insurance market remains strong, with healthy advertising spend expected to continue [7][22] Company Strategy and Development Direction - The company aims to capture multi-year growth opportunities, particularly in the P and C insurance vertical, while also focusing on compliance measures following the FTC settlement [5][8] - There is a strategic shift towards optimizing for market share and transaction value, with plans to focus more on gross profit as market conditions evolve [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory for the rest of the year, particularly in the P and C vertical, despite challenges in the Health vertical [8][11] - The company anticipates increased consumer shopping behavior in the Medicare Advantage market, although carrier budgets may be lighter than in previous years [49][50] Other Important Information - The company reached a settlement with the FTC involving $45 million in payments, which will be funded from cash on hand [6][14] - The company ended the quarter with $85 million in cash and a net debt to adjusted EBITDA ratio of 0.6x, indicating strong financial flexibility [13][14] Q&A Session Summary Question: How will the FTC settlement enhance competitive positioning in the under-65 vertical? - Management indicated that the settlement will create a new baseline for the under-65 business, allowing for better navigation of consumer choices and potential growth opportunities [18][19] Question: What is the outlook for carrier budgets in the second half of the year? - Management expressed optimism about continued strong carrier budgets, citing robust underlying profitability in the personal auto space [21][22] Question: Can you provide more details on the mix of existing carrier spend versus new carrier additions? - The majority of the increase in spend was from existing carriers, with new carriers typically starting small [30] Question: What is the strategy to balance volume growth and profitability? - The current focus is on optimizing for market share and transaction value, with plans to shift towards gross profit optimization as market conditions change [32] Question: What are the expectations for the upcoming AEP and its impact on shopping behavior? - Increased shopping behavior is anticipated, but carrier budgets may be lighter than previous years due to market churn and uncertainty [50][51]

Financial Data and Key Metrics Changes - Consolidated net gaming revenue was $55 million, roughly flat compared to the prior year period, primarily due to the devaluation of the Mexican peso [6][9] - On a constant currency basis, net gaming revenue would have been nearly $61 million, representing a 12% increase year-over-year [6][9] - Adjusted EBITDA was positive $2.3 million in the second quarter, with a contribution of $6.3 million from the Spanish business, which is 5% above the prior year [10][11] - The company ended the quarter with €45 million in total cash, of which approximately €41 million was available [17] Business Line Data and Key Metrics Changes - The casino segment contributed 61% of total net gaming revenue, indicating a stabilization around this mix [6] - In Colombia, net gaming revenue decreased by $1.6 million, partially offset by an $800,000 increase in Panama, which reflects a doubling of net gaming revenue in that market [9][10] - In Mexico, net gaming revenue was $29 million, a 3% increase from the prior year, despite a 19% devaluation of the peso impacting overall revenue [12][13] Market Data and Key Metrics Changes - The average monthly active customers increased by 7%, while the average monthly spend per active customer decreased by 5% due to the weaker peso [6][12] - The company acquired 78,000 first-time depositors, a 7% increase from the prior year [7][12] - The Mexican peso devaluation had a $5.7 million negative impact on net gaming revenue, but on a constant currency basis, revenue would have grown by 23% [13] Company Strategy and Development Direction - The company has regained compliance with Nasdaq listing requirements, alleviating concerns about its status as a publicly traded entity [5] - Marketing investments are expected to decrease in the second half of the year, which, along with a positive outlook for net gaming revenue, is anticipated to lead to higher EBITDA generation [11][39] - The company is focusing on the Mexican market, especially with the upcoming World Cup in 2026, which is expected to drive business growth [13][39] Management's Comments on Operating Environment and Future Outlook - Management noted that the competitive landscape in Spain remains challenging, with no immediate changes expected in regulations [24][25] - The company is optimistic about the back half of the year, citing strong returns from existing and new players in Mexico [39] - The VAT imposed in Colombia has significantly impacted revenue, leading to a focus on maintaining breakeven operations in that market [54][55] Other Important Information - The company has repurchased approximately 106,000 shares under its buyback plan, investing around $7.7 million [7] - The company is exploring opportunities for future investments as cash flow improves, although no specific plans have been announced [58][59] Q&A Session Summary Question: Performance in Spain and Competitive Environment - Management indicated that the competitive landscape in Spain remains tough, with no expected changes in the near future [24][25] - The impact of sports seasonality was noted, with expectations for stronger performance in the upcoming quarter [26][27] Question: Marketing Initiatives in Mexico - The marketing strategy is focused on lower LTV players, with ongoing testing of various channels [30][32] - Management clarified that the strategy is not a direct response to peso devaluation but part of ongoing user acquisition efforts [31] Question: Profitability Improvement in the Back Half - Factors contributing to expected profitability include the rolling off of certain sponsorships and improved unit economics in Mexico [36][39] Question: Growth Opportunities in Other Latin American Markets - Management expressed concerns about Colombia due to the VAT impact but noted success in Panama [54][55] - The company believes its successful strategies in Mexico can be replicated in other markets, albeit with higher costs [44][46] Question: GGR and VAT Impact in Colombia - Management acknowledged significant top-line impacts due to VAT, estimating a 40% reduction in expected revenue [68] - The viability of the Colombian market under current conditions remains uncertain and would require further analysis [70] Question: Share Repurchase Strategy - Discussions regarding share repurchases are ongoing at the board level, with a focus on opportunistic buying [75]

Core Viewpoint - Brookdale Senior Living Inc. (BKD) reported a first-quarter loss and experienced a decline in share price despite some revenue growth, primarily due to rising operational costs and decreased interest income [1][2]. Financial Performance - BKD incurred a first-quarter loss of 11 cents per share, which is an improvement from a loss of 13 cents in the prior year [2]. - Total revenues increased by 4% year over year to $813.9 million, driven by higher resident and management fee revenues, but fell short of the Zacks Consensus Estimate by 0.8% [2]. - Resident fees reached $777.5 million, up 4.5% year over year, but were below the consensus estimate of $781.3 million [3]. - Management fees rose slightly by 0.1% year over year to $2.6 million, missing the consensus mark of $2.7 million [3]. Operational Metrics - Revenue per occupied unit (RevPOR) increased by 3% year over year, attributed to annual rate increases [4]. - Weighted average occupancy improved by 140 basis points year over year to 79.3% [4]. - Revenue per available unit (RevPAR) saw a 4.9% year-over-year increase [4]. Cost Structure - Facility operating expenses totaled $557 million, reflecting a 2.7% year-over-year increase due to higher wage rates and utility costs [4]. - General and administrative costs rose by 4.7% year over year to $47.9 million [4]. - Interest income decreased by 23.7% year over year to $3.6 million [5]. Net Loss and Cash Flow - The net loss for the quarter was $65 million, wider than the previous year's loss of $29.6 million, primarily due to increased operating and interest expenses [5]. - Adjusted EBITDA rose by 27.2% year over year to $124.1 million [5]. - BKD generated $23.4 million of net cash from operations, a significant improvement from a net cash usage of $1.1 million in the prior year [7]. - Adjusted free cash inflow was $3.8 million, compared to an outflow of $26.3 million in the previous year [7]. Balance Sheet Overview - As of March 31, 2025, BKD had cash and cash equivalents of $239.7 million, down from $308.9 million at the end of 2024 [5]. - Total assets decreased to $6.2 billion from $6.3 billion at the end of 2024 [6]. - Long-term debt increased to $4.2 billion from $4 billion as of December 31, 2024 [6]. - Total equity dropped to $148.1 million from $213.9 million at the end of 2024 [6]. Future Outlook - Management now estimates RevPAR growth for 2025 in the range of 5%-5.75%, an increase from the previous estimate of 4.75%-5.75% [8]. - Adjusted EBITDA is projected to be between $440-$450 million, up from the earlier range of $430-$445 million [8]. - Non-development capital expenditures are expected to remain within $175-$180 million for 2025 [8].