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]

Financial Data and Key Metrics Changes - Q4 2025 revenues were $58.9 million, with adjusted EBITDA of $5.5 million, both at the upper end of guidance [5][14] - Full year 2025 total revenue was $208.2 million, up 2% year-over-year, driven by AIC program expansion [14][15] - Adjusted EBITDA for the full year was $1.5 million compared to $0.3 million in 2024, indicating a positive trend [16] - Non-GAAP gross margin for Q4 was 50.7%, down from 55.1% in Q4 2024, reflecting changes in product mix and tariffs [15] - Operating cash flow for Q4 was approximately $10.6 million, marking the ninth consecutive quarter of positive cash generation [16] Business Line Data and Key Metrics Changes - AIC revenue grew 104% year-over-year, contributing $15.2 million in revenues for 2025, up from $3.3 million [14][15] - The company exited 2025 with approximately $25 million in ARR from the AIC program, supported by multi-year customer commitments [6][14] - Impressions grew at a strong double-digit rate in Q4, with a full-year growth of 11%, reaching 243 million impressions [5][14] Market Data and Key Metrics Changes - Over 40% of new system deals in 2025 came from net new customers, many transitioning from traditional screen printing to digital production [6][7] - The U.S. market is seeing significant adoption of the Atlas MAX platform among midsize screen printers [7][10] - The company anticipates stronger growth in the footwear and technical apparel segments in 2026, supported by new technologies [11][68] Company Strategy and Development Direction - The company is transitioning towards a more recurring ARR model, which is expected to enhance revenue visibility and scalability [6][11] - Focus remains on penetrating the screen market and expanding the AIC program while delivering on the innovation roadmap [11][12] - The company plans to unveil new technologies at the Connection event in April, aimed at expanding market applications and driving growth [12][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with better visibility and predictability, with 83% of revenues expected to be recurring [11][29] - The company expects low single-digit revenue growth in 2026, with improved profitability and continued positive cash flow [11][18] - Management highlighted the ongoing shift in the apparel industry towards on-demand production and digital solutions as a significant opportunity [56][57] Other Important Information - The company repurchased $27 million in shares under its buyback program, reflecting a commitment to returning value to shareholders [17] - The company is evaluating inorganic growth opportunities that align with its strategic direction [17] Q&A Session Summary Question: Can you provide more details on the peak season performance and Apollo system? - Management noted strong double-digit impression growth during the peak season, with high utilization and customer satisfaction for the Apollo system [22][23] Question: What were the major accomplishments in 2025? - The company successfully transitioned to growth, achieved significant ARR, and penetrated key customers in the screen market [25][26] Question: How should we view the low single-digit revenue forecast for 2026? - Management emphasized a prudent approach to guidance, focusing on long-term quality revenue through the AIC model [36][38] Question: What is the significance of the order from a strategic customer for upgrades? - The order reflects confidence in the technology and will be executed over several quarters, indicating a need for increased capacity [40] Question: How is the Apollo system performing with new customers? - The sales cycle for new customers has been different, requiring more education and workflow integration, but successes are being seen [44][46] Question: What are the expectations for gross margins in 2026? - Management expects gross margins to remain stable as AIC scales, with disciplined expense management [50][51] Question: How does the company view the footwear market opportunity? - The footwear market is seen as a significant opportunity, with innovative solutions being developed to meet customer needs [88][90]