Financial Data and Key Metrics Changes - Q4 revenues reached $58.9 million, with adjusted EBITDA of $5.5 million, both at the upper end of guidance [6][15] - For the full year 2025, total revenue was $208.2 million, up 2% year-over-year, driven by the expansion of the AIC program [15][16] - Adjusted EBITDA for the full year was $1.5 million compared to $0.3 million in the previous year, indicating a positive trend [17] - Non-GAAP gross margin for Q4 was 50.7%, down from 55.1% in Q4 2024, while for the full year it was 47.2%, down from 48.6% [16][17] Business Line Data and Key Metrics Changes - AIC revenue grew 104% year-over-year, contributing $15.2 million in revenues for the year [15][16] - The company ended the year with approximately $25 million in ARR from the AIC program, supported by multi-year customer commitments [7][15] - Impressions grew at a strong double-digit rate in Q4, with a total of 243 million impressions for the full year, reflecting an 11% growth [5][6] Market Data and Key Metrics Changes - Over 40% of new system deals in 2025 came from net new customers, many of whom were traditional screen printers adopting digital production for the first time [7][8] - The U.S. market showed significant adoption of the Atlas MAX platform among midsize screen printers, indicating a shift towards digital production [8][9] - The footwear market is identified as a significant growth opportunity, with expectations of capturing 2 billion impressions [92][93] Company Strategy and Development Direction - The company aims to transition towards a more recurring ARR model, which is expected to enhance revenue visibility and durability [4][7] - Focus remains on penetrating the screen market and expanding the AIC program while delivering on innovation to support growth beyond 2026 [12][14] - The company plans to introduce new technologies and capabilities in 2026 to expand applications and drive future growth [12][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with a growing pipeline of opportunities and better visibility, expecting low single-digit revenue growth [12][19] - The transition to digital production is seen as a necessity in the apparel industry, driven by changing consumer demands and sustainability concerns [58] - Management highlighted the importance of customer partnerships and the need for continuous innovation to maintain competitive advantage [84] Other Important Information - The company repurchased $27 million in shares under its share purchase program, reflecting a commitment to returning value to shareholders [18] - The company is preparing for a significant event in April 2026, where new technologies and innovations will be unveiled [14][98] Q&A Session Summary Question: Can you provide more color on peak season performance and Apollo? - Management noted strong double-digit impression growth during peak season, with Apollo systems achieving over 90% uptime and high customer satisfaction [24][25] Question: What were the major accomplishments in 2025? - Key achievements included returning to growth, significant expansion of the AIC program, and positive cash flow generation [27][30] Question: How should we think about system placements in 2026? - The company expects to deliver more systems and capacity, indicating strong future revenue potential from ink and services [32] Question: Can you discuss the significance of the Amazon upgrade order? - Management confirmed a strategic relationship with a global customer, with upgrades expected to take place over several quarters [41] Question: What is the outlook for the direct-to-fabric market? - Management acknowledged challenges in 2025 but expressed confidence in a stronger pipeline and innovative solutions for the footwear market [69][70]