Financial Data and Key Metrics Changes - In Q2 2025, the company reported $685 million in Marketplace Gross Order Value (GOV), down 31% year-over-year [11] - Total Marketplace orders decreased approximately 30% year-over-year, while average order size declined by 2% [11] - Revenues for Q2 were $144 million, representing a 28% year-over-year decrease [11] - Adjusted EBITDA for Q2 was $14 million, significantly down from the previous year due to lower volume and negative operating leverage [12] - The company ended Q2 with $392 million in debt and $153 million in cash, resulting in net debt of $239 million [13] Business Line Data and Key Metrics Changes - The sports category experienced a significant decline, down double digits in Q2, attributed to weak playoff matchups and challenging comparisons [5][6] - The concerts category saw low single-digit growth in Q2 but faced a double-digit decline in June [5] - The company announced a cost reduction program targeting $25 million in annualized savings, with over $5 million already realized [6][7] Market Data and Key Metrics Changes - The industry faced a challenging operating environment with double-digit declines across categories in June, influenced by economic uncertainty and the FTC's all-in pricing mandate [5][6] - Internationally, the company is now operational in four European countries, exceeding margin expectations and achieving net contribution positive thus far in 2025 [9] Company Strategy and Development Direction - The company is executing a strategic cost reduction program to improve operating leverage and position itself for long-term growth opportunities [4][6] - The focus is on enhancing efficiency without compromising customer experience, with plans to shut down Vivid Picks as part of this strategy [7][8] - The company remains committed to innovation and expanding its international presence despite current challenges [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of live events, despite current competitive pressures and economic uncertainties [5][10] - The company anticipates positive cash flow in Q3 due to seasonal improvements and believes that the softness experienced in June was atypical [13][90] - Management highlighted the importance of returning to growth and generating sustainable positive cash flow as key objectives moving into 2026 [90][91] Other Important Information - The company plans to implement a one-for-20 reverse stock split to enhance the marketability of its common stock [13][14] - The competitive landscape remains intense, with increased aggressiveness in performance marketing channels impacting profitability [76][80] Q&A Session Summary Question: Thoughts on take rate and market positioning - Management emphasized a focus on unit economics and plans to emerge leaner to drive sustainable growth into 2026 [20][21] - The take rate increase was attributed to mix shifts rather than pricing changes, with a focus on maintaining competitiveness [22][24] Question: Impact of consumer spending and competitive pressures - Management indicated that competitive intensity was the primary issue, with consumer softness contributing a couple of hundred basis points of headwind [29] Question: International expansion and growth plans - Management expressed satisfaction with international performance and indicated a willingness to accelerate investments in that area [32] Question: All-in pricing impact on the market - Management noted that the all-in pricing rollout has led to a decline in conversion rates, but recovery is expected based on past experiences in other states [41][42] Question: Cost savings and operational efficiency - Management confirmed that the $25 million in savings is an annualized figure expected to be fully realized by year-end [38] Question: Shuttering Vivid Picks - The decision to shut down Vivid Picks was based on its failure to drive expected engagement and increasing regulatory challenges [85][86] Question: Cash flow expectations for 2025 and 2026 - Management expects to be cash flow positive in Q3, with a focus on returning to growth to support sustainable cash generation [90][91]

Financial Data and Key Metrics Changes - The company reported record revenues of $784 million, a 42% increase compared to the previous year [4] - Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 31.4% to $213.3 million [15] - Post-tax adjusted earnings grew by 34% to a record $153.7 million, with adjusted earnings per share improving by 34.8% to 31 cents [15] Business Line Data and Key Metrics Changes - ECS revenues surged by 122.2% to a record $261.6 million, driven by OTC and strong organic growth [8] - Rates revenues increased by 20.8% to $200.6 million, reflecting higher volumes across major interest rate products [8] - Foreign exchange revenues rose by 21.9% to $108.5 million, attributed to strong growth in FX options and emerging market currencies [8] - Credit revenues increased by 8.5% to $75.3 million, driven by higher US and emerging market credit volumes [9] - Equities revenues grew by 43.8% to $73.9 million, with notable strength across EMEA and Americas [9] - Fenics revenues improved by 18.6% to $162.9 million, with Fenics Markets reporting revenues of $134.1 million, a 16.5% increase [10] Market Data and Key Metrics Changes - EMEA revenues increased by 50.3%, Americas revenues rose by 40.3%, and Asia Pacific revenues grew by 17.4% [13] - FMX UST generated record average daily volume of $68 billion, a 45% increase compared to last year [11] - FMX FX nearly doubled its average daily volume to a record $15.6 billion [11] Company Strategy and Development Direction - The company aims to enhance profitability through a cost reduction program expected to deliver at least $25 million in annualized savings [5][6] - The integration of the OTC acquisition is a priority, with a focus on closing the margin gap between BGC and OTC [26] - The company continues to gain market share in ECS and financial markets, with strong growth across all asset classes and geographies [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, expecting total revenues for Q3 2025 to be between $715 million and $765 million, representing approximately 32% growth year-over-year [18] - The adjusted earnings tax rate is anticipated to be between 10% and 12% for the full year 2025 [19] Other Important Information - The company acknowledged a tragic shooting incident in Midtown Manhattan, expressing condolences to the victims' families [20] Q&A Session Summary Question: How does the company view the growth algorithm and margin trajectory post-acquisition? - Management indicated that the acquisition of OTC has not changed the growth dynamics, with a focus on reducing the margin gap through a cost reduction program [25][26] Question: Can you elaborate on the traction in the futures business? - Management reported record volumes and increasing open interest in the futures market, with a strong focus on client engagement [30][31] Question: Are there any complexities with treasury futures compared to SOFR? - Management stated there are no additional impediments, and they expect US treasury futures to follow the success of SOFR [40] Question: What is the outlook for the FX business? - Management noted that the FX business is experiencing structural growth, with volumes in the FMX FX platform growing significantly [44] Question: Why has the voice portion of the FX business outperformed the electronic franchise recently? - Management explained that clients have opted for voice trading during periods of volatility, but they expect a gradual shift back to electronic trading as the market stabilizes [46]

Financial Data and Key Metrics Changes - The company's reported revenue for Q1 was $915 million, an 8% decrease compared to the previous year, consistent with Q4 revenue [13] - Operating income margin increased by 40 basis points year over year to 4.1% [17] - EBITDA for the first quarter was $85 million, with earnings per share (EPS) of $0.44, unchanged from Q1 2024 [18] Business Line Data and Key Metrics Changes - ITS revenue was $530 million, down 4% from $552 million in the prior year, despite an 8% increase in intermodal volumes [14] - Logistics segment revenue decreased to $411 million from $480 million due to lower brokerage volume and revenue per load [14] - Brokerage volume declined by 9% year over year, with a 10% decrease in revenue per load primarily driven by lower fuel prices [11] Market Data and Key Metrics Changes - Intermodal volumes increased by 8% year over year, with local East volumes up 13% and local West up 5% [8] - The company anticipates a near-term impact on import volumes to the West Coast, but the magnitude remains uncertain [6] - Approximately 25% of the company's West Coast volume is port-related, with 30% of that coming from China [28] Company Strategy and Development Direction - The company is focused on profitable growth across all segments, leveraging service quality and cost reductions [6] - A $40 million cost reduction program has been implemented to enhance operational efficiency [7] - The company is exploring strategic acquisition opportunities while maintaining a strong balance sheet [7] Management's Comments on Operating Environment and Future Outlook - Management expects a drop in import demand in the second half of Q2, with varying impacts based on customer strategies [40] - The guidance for full-year EPS is projected to be between $1.75 and $2.25, with revenue expected between $3.6 billion and $4 billion [20] - The company is monitoring customer shipping patterns closely and anticipates a return to normal seasonal operating income patterns in the latter half of the year [22] Other Important Information - The company returned $21 million to shareholders through dividends and stock repurchases in the quarter [19] - Net debt was reported at $140 million, which is 0.4x EBITDA, below the target range of 0.75x to 1.25x [19] - The company has seen a 1,100 basis point improvement in warehouse utilization year over year due to operational efficiency enhancements [11] Q&A Session Summary Question: What percentage of intermodal is tied to West Coast ports? - Approximately 25% of the West Coast volume is port-related, with 30% of that from China [28] Question: Can you provide monthly trends for intermodal volumes? - January was up 18%, February up 1%, March up 7%, and April up 6% [28] Question: How have conversations with large customers evolved? - There is anticipation of a drop in import demand, but many customers have diversified their supply chains [40] Question: What is the outlook for intermodal pricing? - Pricing is expected to be flat for the full year, with competitive bidding observed [33] Question: What is the current headcount situation? - Headcount was down 7%, with ongoing cost control measures in place [53] Question: What are the expectations for capital expenditures? - Capital expenditures are projected to be between $40 million and $50 million, focusing on tractor replacements and technology projects [20]

Financial Data and Key Metrics Changes - The reported revenue for the first quarter was $915 million, a decrease of 8% compared to the previous year [11] - Operating income margin increased by 40 basis points year over year to 4.1% [14] - EBITDA for the first quarter was $85 million, with earnings per share (EPS) of $0.44, consistent with Q1 2024 [15] Business Line Data and Key Metrics Changes - ITS revenue was $530 million, down 4% from $552 million in the prior year, despite an 8% increase in intermodal volumes [12] - Logistics segment revenue decreased to $411 million from $480 million due to lower brokerage volume and revenue per load [12] - Brokerage volume declined by 9% year over year, with a 10% decline in revenue per load primarily driven by lower fuel prices [10] Market Data and Key Metrics Changes - Intermodal volumes increased by 8% year over year, with local East volumes up 13% and local West up 5% [6] - The company anticipates a near-term impact on import volumes to the West Coast, but the magnitude remains uncertain [5] - Approximately 25% of West Coast volume is port-related, with 30% of that coming from China [26] Company Strategy and Development Direction - The company is focusing on profitable growth across all segments while implementing a $40 million cost reduction program [5] - Strategic changes include a focus on yield management, asset utilization, and investing in asset-light logistics offerings [21] - The company is exploring acquisition opportunities to enhance its service offerings and scale [51] Management's Comments on Operating Environment and Future Outlook - Management expects full-year EPS in the range of $1.75 to $2.25 and revenue between $3.6 billion to $4 billion [17] - The company anticipates a potential slowdown in import demand in the second half of Q2, with varying impacts based on customer behavior [34] - Management remains optimistic about the long-term strategy and believes the company can succeed in various macroeconomic environments [21] Other Important Information - The company returned $21 million to shareholders through dividends and stock repurchases in the quarter [16] - Net debt was $140 million, representing 0.4x EBITDA, below the stated net debt to EBITDA range of 0.75x to 1.25x [16] - The company has seen a significant improvement in warehouse utilization, with an 1,100 basis point increase year over year [10] Q&A Session Summary Question: What percentage of intermodal is tied to West Coast ports? - Approximately 25% of West Coast volume is port-related, with 30% of that coming from China [26] Question: Can you provide monthly trends for intermodal volumes? - January was up 18%, February up 1%, March up 7%, and April up 6% [26] Question: What are the expectations for volumes going forward? - Anticipated volume trends will vary by customer, with no significant slowdown observed yet [26][27] Question: How competitive is the bid season? - The bid season has been competitive but not irrational, with a pull forward of bids benefiting intermodal truckload carriers [30] Question: What is the current headcount situation? - Headcount was down 7%, with ongoing cost control measures in place [44] Question: What are the trends in the EASO joint venture? - EASO has seen significant volume growth, approximately 4x year over year, with strong cross-selling opportunities [50] Question: What is the outlook for intermodal pricing? - Pricing is expected to remain flat for the remainder of the year, with potential surcharges depending on market conditions [54] Question: What are the key levers for intermodal margin improvement? - Key levers include increasing velocity in the network and in-sourcing more drayage [92]

Financial Data and Key Metrics Changes - First quarter sales were reported in line with expectations, while adjusted EPS exceeded outlook [6][20] - Overall demand environment remained soft, with reported sales decreasing approximately 12% and comparable sales down 8% excluding foreign exchange [20][21] - Gross profit for the first quarter was $100 million, a decrease of 10%, but gross margin rate expanded by 60 basis points [21] - The company generated free cash flow of $3 million, down from the previous year due to timing and performance of sales in Brazil [24] Business Line Data and Key Metrics Changes - In the Americas segment, sales declined 12%, with comparable sales down 8%, primarily due to lower sales of technology accessories and office products [22][23] - The international segment also saw comparable sales decline by 8%, although technology accessories experienced mid-single-digit growth driven by a large B2B sale [23][14] - Kensington brand had a strong quarter with mid-single-digit growth, while PowerA brand sales were down due to aging consoles and low consumer spending trends [16][20] Market Data and Key Metrics Changes - The demand environment was challenging, particularly in the Americas, impacted by soft consumer and business demand [12][20] - Brazil returned to volume growth, driven by strong performance in premium notebooks and products with popular licenses [14] - The company noted that about 60% of its business is outside the U.S., which is less impacted by the current tariff situation [11] Company Strategy and Development Direction - The company is focused on a $100 million multi-year cost reduction program, realizing $7 million in additional savings in the first quarter [6][19] - A "China plus one" strategy has been implemented to diversify the supplier base and reduce dependency on China [8][9] - The company is implementing price increases in North America in response to tariffs, with two increases communicated to customers [10][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainties related to tariffs and consumer demand, emphasizing a strong balance sheet and proactive actions [11][29] - The company is not providing full-year guidance due to uncertainties surrounding customer demand and tariff impacts [25] - For the second quarter, reported sales are expected to decline by 8% to 12%, with adjusted EPS anticipated in the range of $0.28 to $0.32 [28][29] Other Important Information - The company repurchased $15 million in stock during the quarter and closed on a small acquisition in the Australia-New Zealand markets [7][19] - The company is deferring most discretionary spending and pausing capital expenditures except for new product development and certain IT projects [19] Q&A Session Summary Question: Impact of the large B2B contract on future quarters - Management confirmed that the large B2B contract had a one-time impact in the first quarter and will not contribute to future sales [31] Question: Details on price increases in the international segment - Price increases of approximately 2% were communicated to customers in the international segment, with further increases anticipated in the U.S. due to tariffs [34][35] Question: Details on the recent acquisition - The acquisition was in ergonomic seating and business seating, aimed at entering a growing category in Australia and New Zealand [36][38] Question: Appetite for future acquisitions - Management indicated a cautious approach to acquisitions in the near term due to current trade dynamics, but still sees acquisitions as part of the long-term strategy [42] Question: Timing and revenue expectations from new product development - New products are being introduced throughout the year, with notable launches supporting the Nintendo Switch 2 expected in June [44][46] Question: Dynamics of international segment performance - The international segment faced challenges primarily in EMEA, with specific issues in Germany impacting sales [48][50]

Financial Data and Key Metrics Changes - First quarter sales were in line with expectations, while adjusted EPS exceeded outlook [5][18] - Reported sales decreased approximately 12%, with comparable sales down 8% excluding foreign exchange [18][19] - Gross profit for the first quarter was $100 million, a decrease of 10%, but gross margin expanded by 60 basis points [19] - Adjusted operating income for the first quarter was $7 million, down from $16 million a year ago [19][22] - The company ended the quarter with a leverage ratio of 3.65 times, well below the covenant of 4.5 times [6][22] Business Line Data and Key Metrics Changes - In the Americas segment, sales declined 12%, with comparable sales down 8% due to lower sales of technology accessories and office products [20][21] - The international segment also saw comparable sales decline by 8%, although technology accessories experienced mid-single-digit growth driven by a large B2B sale [21][13] - The computer and gaming accessories segment grew mid-single digits, while sales of office products remained sluggish across most markets [13][15] Market Data and Key Metrics Changes - The demand environment was challenging, particularly in the Americas, impacted by soft consumer and business demand [11][18] - Brazil returned to volume growth, driven by strong sales of premium notebooks and products with popular licenses [13] - The company noted that about 60% of its business is outside the U.S., which is less affected by the current tariff situation [10] Company Strategy and Development Direction - The company is focused on a $100 million multi-year cost reduction program, achieving $7 million in savings in the first quarter [5][17] - A "China plus one" strategy has been implemented to diversify the supplier base and reduce dependency on China [7][10] - The company is temporarily investing in inventory to mitigate financial impacts from tariffs and is implementing price increases in North America [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainties related to tariffs and consumer demand [10][26] - The company is not providing full-year guidance due to the unpredictable economic environment and customer demand [23] - For the second quarter, reported sales are expected to decline by 8% to 12%, with adjusted EPS anticipated in the range of $0.28 to $0.32 [25][26] Other Important Information - The company repurchased $15 million in stock during the quarter and made a small acquisition in the Australia-New Zealand markets [6][22] - The acquisition focused on ergonomic seating and business seating, expanding the product portfolio in a growing category [34][36] Q&A Session Summary Question: Impact of the large B2B contract on future quarters - The large B2B contract had a one-time impact in the first quarter, with no incremental sales expected in subsequent quarters [28][29] Question: Details on price increases in the international segment - A 2% price increase was communicated to customers in the international segment, with additional increases anticipated in the U.S. due to tariffs [31][32] Question: Appetite for future acquisitions - The company remains open to acquisitions as part of its long-term strategy but will be cautious in the near term due to current trade dynamics [40] Question: Timing and revenue expectations from new product development - New products are being introduced throughout the year, with notable launches supporting the Nintendo Switch 2 expected in June [41][42] Question: Dynamics of sales pull forward for back-to-school orders - The pull forward of back-to-school orders was not significant for the overall season, and the company is well-prepared to support retailers [66][67] Question: Pricing actions in response to tariffs - The first round of price increases was in the single digits, while reciprocal tariffs could lead to increases up to 20% [80]

Financial Performance - ACCO Brands' Q1 2025 net sales were $317.4 million, a decrease of 11.6% compared to $358.9 million in Q1 2024[26, 86] - The company reported an adjusted loss per share of ($0.02) in Q1 2025, compared to an adjusted earnings per share of $0.03 in Q1 2024[26] - Free cash flow for Q1 2025 was $3 million, a decrease from $26 million in Q1 2024[15, 44] - The company's gross margin expanded by 60 basis points due to favorable sales mix and productivity[15] - SG&A costs decreased by 1.6% year-over-year, primarily due to cost savings initiatives[26] Segment Performance - ACCO Brands Americas' sales decreased by 11.8% to $173.9 million in Q1 2025 from $197.2 million in Q1 2024[30] - ACCO Brands International's sales decreased by 11.3% to $143.5 million in Q1 2025 from $161.7 million in Q1 2024[30] Cost Reduction Program - The company is executing a $100 million cost reduction program, with $32 million realized since inception[15, 23] - $7 million in savings were achieved in Q1 2025, and the company is on track to deliver $40 million in pre-tariff savings in 2025[25] Capital Structure and Allocation - As of March 31, 2025, the company had $135 million in cash on hand[40] - The company repurchased $15 million in stock during Q1 2025[15] - The consolidated leverage ratio was 3.65x at the end of Q1 2025[40] Outlook - The company expects Q2 2025 net sales to be in the range of $386 million to $403 million, representing a decrease of 8% to 12%[49] - Adjusted EPS for Q2 2025 is expected to be between $0.28 and $0.32[49]