Financial Data and Key Metrics Changes - The company achieved record revenue of $777.7 million for Q4 2025, representing a 35.9% year-over-year increase [18] - Full year revenue reached $2 billion, up 37.3% from 2024 [20] - Adjusted EBITDA for Q4 was $146.1 million, slightly down from $147.3 million in Q4 2024 [19] - Non-GAAP gross margin for Q4 was 31.9%, down from 39.3% in Q4 2024 [18] - Non-GAAP operating profit for the full year was $221 million, an increase of $113.4 million from the previous year [20] - The company ended the quarter with $2.5 billion in total cash on the balance sheet [19] Business Line Data and Key Metrics Changes - The service business achieved approximately 20% non-GAAP gross margin for the first time in Q4 2025 [19] - The product backlog increased by 140% year-over-year to about $6 billion [7] - The service backlog reached approximately $14 billion, indicating strong growth potential [21] Market Data and Key Metrics Changes - The CNI (Commercial and Industrial) backlog grew over 135% year-over-year, driven by sectors such as telecom, manufacturing, logistics, retail, healthcare, and education [9] - The geographic mix of the U.S. backlog shifted, with over 80% now coming from states with lower power costs, compared to over 80% from California and the Northeast two years ago [9][10] Company Strategy and Development Direction - The company is focusing on becoming the standard for on-site power, capitalizing on the growing demand from data centers and CNI customers [8] - Investments will be made in the commercial team to enhance sales opportunities in 2026 [8] - The company is committed to expanding manufacturing capacity in a capital-light manner, allowing for rapid scaling without significant upfront investment [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet growing power demands, particularly in the context of AI and digital infrastructure [8][10] - The company anticipates continued improvements in service profitability as the install base expands [21] - Management highlighted the importance of 800 Volts DC technology as a future-proof solution for data centers, enhancing efficiency and reducing costs [15][16] Other Important Information - The company reported a cash flow from operating activities of $113.9 million for Q4 2025 [19] - Capital expenditures for the year were $57 million, with expectations for 2026 capital spending to be between $150 million and $200 million [22] Q&A Session Summary Question: Follow-on opportunities at existing customers - Management noted that over two-thirds of business comes from repeat customers, indicating strong customer satisfaction and ongoing engagement [25] Question: Milestones for capacity expansion - Management stated that decisions on capacity expansion are continuous and based on market opportunities, with a quick ramp-up capability [27][28] Question: Deployment of HVDC architecture - Management expressed confidence in the competitive advantage of 800-volt DC technology and its anticipated adoption in data centers [30][31] Question: Progress on combined heat and power solutions - Management highlighted the potential for absorption chillers to reduce electricity usage significantly, enhancing competitiveness [39][41] Question: Project wins against legacy technologies - Management confirmed that the company is operating in the same project size category as combined-cycle gas turbines, demonstrating competitive capabilities [45][48] Question: Life of fuel cell stacks and service margins - Management emphasized the continuous profitability of the service business and improvements in fuel cell stack performance [50][51] Question: Supplier growth projections - Management refrained from providing long-term guidance but acknowledged the bullish sentiment from supply chain partners [56][57] Question: U.S. vs. international market opportunities - Management indicated that while the U.S. market is currently the focus, the company plans to expand globally as infrastructure develops [61][62] Question: Pricing strategy and leverage - Management stated that pricing is market-driven and based on the value proposition offered to customers, with no immediate concerns about pricing pressures [66][69] Question: Interest in potential M&A - Management indicated that while they are open to selective acquisitions, the primary focus remains on scaling the core product [70][71]