I only buy strong businesses. I only buy them when they're cheap. Backgrounds in economics, philosophy, government, data. I started my investing journey with a fairly concentrated portfolio of Canadian dividend payers in the telecom, pipeline and banking industries. I have moved forward through different industries including payments, US regional banking, Chinese and Brazilian equities, REITs, technology companies and a few other emerging market opportunities, as well as microcap through to megacap range. I ...

I only buy strong businesses. I only buy them when they're cheap. Backgrounds in economics, philosophy, government, data. I started my investing journey with a fairly concentrated portfolio of Canadian dividend payers in the telecom, pipeline and banking industries. I have moved forward through different industries including payments, US regional banking, Chinese and Brazilian equities, REITs, technology companies and a few other emerging market opportunities, as well as microcap through to megacap range. I ...

Key Takeaways Nu Holdings reached 123M customers in Q2 2025, covering 60% of Brazil's adult population.NU added 18M new customers in 12 months, averaging 1.5M sign-ups monthly.Quarterly revenues rose 29% year over year to $3.7B, driven by rapid customer growth.When it comes to fintech disruption, few players are rewriting the rules like Nu Holdings Ltd. (NU) . The secret? Not just fancy apps or sleek cards, it’s pure, relentless customer growth.In the second quarter of 2025, the company reached a remarkable ...

I only buy strong businesses. I only buy them when they're cheap. Backgrounds in economics, philosophy, government, data. I started my investing journey with a fairly concentrated portfolio of Canadian dividend payers in the telecom, pipeline and banking industries. I have moved forward through different industries including payments, US regional banking, Chinese and Brazilian equities, REITs, technology companies and a few other emerging market opportunities, as well as microcap through to megacap range. I ...

Core Insights - Manulife Canada and Centum Financial Group Inc. have renewed their partnership to enhance mortgage and financial protection solutions for Canadians [1][9] - The collaboration combines Centum's mortgage expertise with Manulife's wealth management experience, offering comprehensive financial solutions [2] Partnership Details - Centum Financial's agents will continue to provide Manulife's Mortgage Protection Plan, which includes life and disability insurance [3] - A new Group RRSP program will be available to Centum agents starting September 1, allowing them to pursue their financial goals while assisting clients [4] Business Impact - The partnership is expected to increase access to mortgage professionals, driving premium growth and enhancing cross-selling opportunities [5] - Mortgage-linked products are anticipated to generate predictable cash flows, improving operational efficiency and supporting long-term revenue growth [5] Market Performance - Year-to-date, Manulife's shares have decreased by 2.1%, compared to a 1.2% decline in the broader industry, indicating ongoing challenges [6]

Financial Data and Key Metrics Changes - Reported service revenues for Q2 2025 were $313.9 million, a 1.5% increase from $309.3 million in the prior year period, with a constant currency growth of 2.1% [13] - Adjusted gross margin for Q2 2025 was 28.8%, a decrease of 30 basis points compared to the prior year, primarily due to foreign exchange headwinds [14] - Adjusted EBITDA for Q2 2025 was $54.6 million, down from $59.1 million in the prior year, resulting in an adjusted EBITDA margin of 17.4% compared to 19.1% in the prior year [14][16] Business Line Data and Key Metrics Changes - The company experienced steady revenue growth and solid adjusted EBITDA margin performance, driven by strong call out activity addressing urgent customer needs [6][7] - The asset integrity services segment continues to drive demand, even amid customer capital spending constraints [7] Market Data and Key Metrics Changes - The company noted sustained momentum among existing customers and continued success in securing new customers, particularly in the asset integrity management business [6][7] - The combination with NV5 is expected to enhance the company's ability to deliver integrated solutions across various end markets, including industrial and infrastructure [10][18] Company Strategy and Development Direction - The acquisition of NV5, valued at approximately $1.7 billion, is seen as a transformative step to position the company as a market leader in testing, inspection, certification, and compliance (TIC) and engineering services [5][15] - The integration of NV5 is expected to create substantial cross-selling opportunities and enhance the company's service offerings [10][19] - The company aims to reduce net leverage to under three times through growth, operational execution, and disciplined cash flow generation [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to navigate macroeconomic challenges, emphasizing the essential nature of their services [11][21] - The company plans to provide updated financial guidance reflecting the combined business in November, following a thorough review [16][17] Other Important Information - The company has established a dedicated integration management office to drive accountability and pace in the NV5 integration process [20] - Management highlighted the importance of retaining top talent from both organizations during the integration [19] Q&A Session Summary Question: Clarification on normalized business mix and its impact on margins - Management explained that the margin stability is typical, with slight variations due to seasonal work peaks in Q2 and Q3 [27][28] Question: Details on one-time costs and future benefits from business transformation - Management indicated ongoing costs related to public company build-up and acquisitions, with expectations of returning to normalized levels [30][31] Question: Insights on transformation and potential benefits - Management highlighted new end markets and cross-selling opportunities as key benefits from the acquisition [33][34] Question: Impact of economic slowdown on business - Management noted resilience across end markets, with some strain in the chemical sector but overall stability expected [50][52] Question: Strong call out work in the quarter - Management attributed strong call out work to specific projects, indicating it was not an abnormal variance [56][58]

Summary of Shift4's Earnings Call Company Overview - **Company**: Shift4 Payments, Inc. - **Recent Acquisition**: Global Blue, closed in early July 2023 Key Themes and Insights 1. **Investor Focus**: Investors are particularly interested in payment volumes and the profile of Shift4's average customer compared to previous years. The success of various initiatives and the impact of the Global Blue acquisition on financials are also key discussion points [5][6] 2. **Business Segments**: Shift4 has a unique position in both enterprise and small-to-medium business (SMB) markets, which contributes to different growth rates in payment volumes and revenue [5][6] 3. **International Expansion**: The company has been focusing on international growth for several years, with significant execution progress noted. The contribution from different countries is a major theme in investor discussions [6] 4. **CFO Transition**: The transition from Nancy to Chris Cruz as CFO was discussed, emphasizing continuity and the importance of Chris's long-standing relationship with the company. Nancy will remain involved as a board member [11][12][15] 5. **Guidance Philosophy**: The company will maintain its guidance philosophy despite the CFO transition, with ongoing refinements as the business evolves [16][17] Financial Projections 1. **Growth Scenarios**: Shift4 outlined three growth scenarios: - **Sit on Hands**: High teens CAGR if no new initiatives are pursued. - **Global Blue Impact**: Mid-twenties CAGR by incorporating Global Blue's forecasts. - **Active Growth**: 30% CAGR by reinvesting capital and pursuing new opportunities [18][22][23] 2. **Capital Deployment**: The company plans to deploy approximately $200 million annually for M&A opportunities, with a disciplined approach to acquisitions [26][28] Global Blue Integration 1. **Performance**: Global Blue is performing well as an independent business, with strong client acquisition in its VAT refund and currency conversion services. The company anticipates meaningful synergies within a year [30][31] 2. **Leadership**: Jacques Stern, CEO of Global Blue, has been appointed head of Shift4 International, bringing valuable international experience to the organization [36] 3. **Digitization Opportunities**: Shift4 aims to enhance the digitization of Global Blue's processes, making refunds easier and more accessible for consumers [51][54] Currency Impact 1. **Currency Fluctuations**: The impact of currency strength on Global Blue's tax refund business is complex, with both positive and negative effects noted. The diversified nature of Global Blue's business helps mitigate risks associated with currency fluctuations [56][58] Strategic Priorities 1. **Market Leadership**: Shift4 aims to maintain its leadership in key verticals such as hotels, restaurants, and sports entertainment while expanding internationally [63][64] 2. **Differentiation**: The company emphasizes the importance of having a unique value proposition rather than expanding for the sake of growth [65] 3. **Capital Allocation**: Prudent capital allocation is crucial for sustaining growth and achieving returns for investors [66] Competitive Landscape 1. **Stadium and Ticketing Opportunities**: Shift4 is well-positioned in the stadium market, providing comprehensive solutions that enhance the fan experience. The integration of ticketing technology is also a focus area, expanding revenue opportunities [67][72] Leadership Involvement 1. **Jared's Role**: Jared's involvement has shifted to focus on high-level strategic priorities, including capital allocation and international expansion, while maintaining regular communication with the management team [75][78] This summary encapsulates the key points discussed during the earnings call, highlighting Shift4's strategic direction, financial outlook, and integration efforts following the Global Blue acquisition.

Financial Data and Key Metrics Changes - In Q2 2025, net revenue grew by 31% year over year, driven by a 23% organic growth rate and 8% from acquisitions [4][19] - Adjusted EBITDA reached $21.9 million, representing 23% of net revenue, up 71% from a year ago [21] - Net income rose to $15.4 million, up 236% from $4.6 million reported in 2024 [20] - Gross profit grew by 40%, with gross margin improving to 39.4%, up from 34.6% last year [20] Business Line Data and Key Metrics Changes - The energy segment, which constitutes about 85% of revenue, saw a 25% increase, driven by utility program funding and planning [19] - The engineering and consulting segment revenues increased by 16%, reflecting ongoing municipal demand and new contract wins [19] Market Data and Key Metrics Changes - Demand for services is expanding across end markets, particularly due to electrification and AI-driven data centers [13] - Electricity demand in the US is projected to grow by 50% between now and 2050, creating a favorable environment for the company [14] Company Strategy and Development Direction - The company is raising its full-year financial targets based on strong performance and a robust pipeline of opportunities [24][25] - The strategy includes leveraging recent acquisitions to enhance service offerings and cross-selling capabilities [32] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the company's positioning to navigate potential economic slowdowns due to strong funding sources from utilities and public agencies [15] - The company is proactive in managing tariff risks and is working closely with clients to mitigate potential pricing pressures [14] Other Important Information - The company ended the quarter with $28 million in net debt and a net debt to adjusted EBITDA ratio of 0.4 times, indicating strong financial health [23] - Free cash flow for 2025 was consistent with the previous year at $24 million, reflecting effective cash management [24] Q&A Session Summary Question: Can you unpack the potential of Willdan to deliver on robust organic growth as we look into '26 and '27? - Management highlighted that organic growth has been increasing due to intercompany collaboration and cross-selling opportunities from recent acquisitions [31][32] Question: How does Willdan position itself for growth on the grid side? - The company emphasized its strong reputation and relationships with utility commissions, which facilitate trust and collaboration on grid planning and energy efficiency programs [35] Question: Can you provide insight into the character of your fixed-price work? - Management noted that fixed-price contracts offer good cash flows and are relatively low risk compared to traditional EPC contracts, as much of the pricing risk is managed through subcontracting [39][40] Question: Are there any specific large projects in the pipeline? - Management indicated that there are significant opportunities being pursued, including a large contract in New York and several opportunities in California expected to be awarded soon [43][44] Question: What is the impact of the elimination of the tax credit on future tax rates? - Management projected that the effective tax rate could increase by about five points if the tax credit is eliminated, but they are currently in a good position to manage this risk [61][82]

Financial Data and Key Metrics Changes - The company reported Q2 2025 revenue of $80.7 million, representing a 6% year-over-year increase and exceeding guidance [31] - Adjusted EBITDA for Q2 2025 was $9.3 million, the highest in the company's history, and also above guidance [34] - The company revised its full-year 2025 revenue guidance to $310 million due to significant impacts from Medicaid and research funding cuts [6][7] - Adjusted gross margin for Q2 2025 was 50%, a decrease of approximately 30 basis points year-over-year [32] Business Line Data and Key Metrics Changes - Technology segment revenue for Q2 2025 was $52.9 million, reflecting an 11% year-over-year growth driven by recurring revenue from new and acquired clients [32] - Professional services revenue for Q2 2025 was $27.8 million, a 1% decline compared to Q2 2024 [32] - Adjusted technology gross margin was 66%, down approximately 140 basis points year-over-year, while adjusted professional services gross margin was 18%, down approximately 190 basis points year-over-year [32][34] Market Data and Key Metrics Changes - The company anticipates that the impacts of Medicaid and research funding cuts will be a headwind not only in 2025 but likely over the next few years [13] - The company has seen delays in signing new platform client contracts due to macroeconomic uncertainty and funding cuts [9][12] Company Strategy and Development Direction - The company is focused on improving profitability and has removed its previously shared 2028 revenue target of $500 million, emphasizing near-term profitability improvements [14] - The strategic focus is on expanding applications revenue, which has been growing at over 20% year-over-year, and leveraging the Ignite platform for cross-selling opportunities [16][17] - The company plans to complete the migration of platform clients to Ignite by mid-2026, which is expected to alleviate some revenue headwinds [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategy despite current macroeconomic challenges, including inflation and funding cuts [6][14] - The company expects to maintain adjusted EBITDA guidance of $41 million for 2025, despite the revenue reduction [21] - Management acknowledged the need for clients to adjust to new funding realities, which may take time [52] Other Important Information - The company announced a restructuring plan that will impact approximately 9% of its workforce, aimed at improving profitability by over $40 million annually [20] - A new director, Justin Spencer, will join the board effective September 1, bringing relevant experience from the healthcare technology sector [29] - The CEO announced plans to retire effective June 30, 2026, after 15 years in the role [30] Q&A Session Summary Question: How is the Life Science business performing and what level of investment is needed for growth? - Management noted delays in late-stage opportunities in the CareVive business due to research funding cuts but remains confident in the differentiated offering [41][42] Question: Can you explain the market reaction to the recent Medicaid cuts? - Management highlighted a conservative approach among not-for-profit clients, which has led to delays in project initiation as they adjust to funding cuts [50][51] Question: What is the expected EBITDA for 2026? - Management indicated a run rate of approximately $60 million of adjusted EBITDA going into 2026, with potential for additional operating leverage [52][54] Question: What is the contribution of app layer client wins versus external client wins for new platform clients? - Approximately two-thirds of new platform clients have come from existing clients, reflecting strong cross-sell momentum [58][59] Question: How should investors think about growth rates for 2026 and beyond? - Management suggested that growth may be in the low single digits for 2026 due to ongoing macro headwinds, but expects a return to growth as the Ignite migration is completed [66][71]

Financial Data and Key Metrics Changes - The company reported record-breaking second quarter results with adjusted EBITDA of $23 million, up 100% from the first quarter and approximately 70% year-over-year [6][12] - Consolidated net sales increased by 34.8% compared to 2024, although a net loss of $21.6 million was reported due to planned investments in the Conway facility [12][13] - Consolidated adjusted EBITDA was $15.3 million, which included $7.6 million of scale-up operating costs related to the Conway facility [13][15] Business Line Data and Key Metrics Changes - In the Beverage Solutions segment, net sales increased by 27.9% year-over-year, with adjusted EBITDA growing 48.5% to $19.7 million [13][14] - The SS and T segment saw net sales grow by 60% year-over-year, with adjusted EBITDA rising to $3.3 million from $400,000 in the prior year quarter [14] Market Data and Key Metrics Changes - The company experienced a 13.7% volume increase in core roasting ground coffee and a 21.1% increase in single-serve cups, contributing to overall sales growth [13][14] - Commodity coffee price increases were passed on to customers, contributing to top-line growth [14] Company Strategy and Development Direction - The company aims to become the premier integrated strategic supplier to leading coffee, tea, and energy beverage brands globally, focusing on innovation and sustainable sourcing [10][11] - The company is leveraging its relationship with Palantir for data intelligence and risk mitigation, which has significantly contributed to profitability [24][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential headwinds from elevated tariffs, persistent inflation, and softening consumer confidence, but noted strong demand across all customer segments [19][20] - The company remains on track to meet its guidance for the second half of the year, with no changes expected to forward guidance [20] Other Important Information - Capital expenditures for the quarter totaled approximately $20 million, primarily related to the Conway facility [15] - The company has approximately $72 million in unrestricted cash and liquidity under its revolving credit facility [15] Q&A Session Summary Question: Can you expand on the comment regarding results being different in mix? - Management noted that the mix was better in some profitability categories, with slower volume throughput at Conway being offset by improvements in core business areas [22][23] Question: Can you provide more background on the relationship with Palantir? - The company utilizes Palantir's data analytics to enhance risk management and profitability, with expectations for further improvements in manufacturing [25][26] Question: What is the status of the second RTD can line? - The second RTD can line is expected to be installed in October and in production by early November [28][29] Question: What is the visibility for production over the next six to nine months? - Management indicated good visibility on current customer orders, with potential for additional orders as new lines come online [34][35] Question: How is the market share in single serve coffee evolving? - The company is expanding its capacity and has secured new business, but faces competition from larger players like Keurig [47][48] Question: How does the company manage sourcing in light of tariffs? - The company can sometimes substitute sourcing from different countries, but it depends on contract terms and customer profiles [50][52]