Financial Data and Key Metrics Changes - In Q4 2025, the company's revenue was $612.5 million, exceeding guidance of $605 million, representing a 4.7% year-over-year decline, with a positive FX tailwind of 180 basis points [27][30] - Adjusted gross profit margin for the quarter was 37.6%, slightly impacted by USD weakness and statutory cost increases in Colombia and India [28] - Adjusted operating margin remained at 15.5% for the quarter, flat sequentially, with a record free cash flow of $152.8 million, marking the highest quarterly figure in the company's history [29][30] Business Line Data and Key Metrics Changes - The AI Pods revenue reached an exit rate ARR of $20.6 million in 2025, with gross margins between 45% and 60%, compared to a blended gross margin of 38% [12][13] - The AI Pods pipeline reached $283 million in Q4, up 34% over Q3, representing 8% of the total pipeline, an increase from 3% in Q2 [13][14] Market Data and Key Metrics Changes - The IT professional services industry is projected to grow just 4.4% in 2026, significantly lower than overall IT spending growth [5] - The Big Four hyperscalers are expected to approach $700 billion in combined CapEx by 2026, creating a massive implementation gap [5] Company Strategy and Development Direction - The company is positioning itself as an AI-native technology solutions provider, focusing on delivering production-grade AI solutions rather than just pilot projects [3][4] - The strategy includes enhancing partnerships with major tech firms like NVIDIA, OpenAI, and AWS to solidify its AI-native offerings [11][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to positive year-over-year organic revenue growth by mid-2026, supported by record bookings and improving pipeline conversion trends [15] - The company anticipates a revenue range of $2,460 million to $2,510 million for 2026, implying 0.2%-2.2% year-over-year growth [30][31] Other Important Information - The company has restructured its delivery organization to enhance operational efficiency and client-centric solutions [20][21] - The effective tax rate for 2026 is expected to be in the 21%-23% range, with adjusted diluted EPS guidance of $6.10 to $6.50 [31][32] Q&A Session Summary Question: Clarification on growth expectations for the year - Management indicated that the upper end of the guidance assumes continued strong performance with AI Pods and some improvement in the overall market [36][37] Question: Insights on AI Pod model usage - The company noted that clients are transitioning from traditional engagement models to AI Pods, with significant interest in scaling these solutions [38][39] Question: Expectations for Latin America in 2026 - Management reported a recovery in Latin America, with Argentina and Chile performing well, and no significant headwinds anticipated [50][51] Question: Impact of recent news on IT services spending - Management observed increased urgency among clients to embrace agentic AI, leading to a demand for AI-native services [58][59] Question: Path to achieving upper end of AI Pods revenue guidance - Management expressed confidence in reaching the upper end of the guidance with ongoing engagements and positive trends in the AI Pods pipeline [81][83]