Financial Data and Key Metrics Changes - Q4 revenue was $92.8 million, down 3% sequentially from $96.1 million in Q3 2025, and up 1% year-over-year from $91.6 million in Q4 2024 [13] - 2025 revenue was $361.1 million, down 1% year-over-year compared to $366.1 million in 2024 [13] - Q4 Adjusted EBITDA was $16.4 million, compared to $19.1 million in Q3 2025, and $15 million in Q4 2024 [17] - 2025 Adjusted EBITDA was a record $69.6 million, compared to $65.9 million in 2024 [18] - Q4 GAAP net loss was $1.1 million, while 2025 GAAP net loss was $10.8 million [18] Business Line Data and Key Metrics Changes - Q4 endpoint IC revenue was $75.2 million, down 5% sequentially from $78.8 million in Q3 2025, and up 2% year-over-year from $74.1 million in Q4 2024 [13] - Q4 systems revenue was $17.7 million, up 2% sequentially from $17.3 million in Q3 2025, and up 1% year-over-year from $17.5 million in Q4 2024 [15] - 2025 endpoint IC revenue declined 2% year-over-year, while systems revenue grew 2% year-over-year [14][15] Market Data and Key Metrics Changes - The company noted a downward trend in apparel imports and inventory reductions across retail markets, impacting the RAIN market [6] - The company expects endpoint IC demand for apparel to normalize as soon as Q2 2026 [10] - Food volumes remain modest in Q1, but the company anticipates expansion in food rollouts to more stores [10] Company Strategy and Development Direction - The company is focusing on custom-built endpoint ICs to meet specific customer needs, which is expected to drive future growth [9] - The introduction of Gen2X is seen as a key enabler for solutions, enhancing performance and creating new opportunities [10] - The company aims to shift its selling model to focus on solution value rather than individual components [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a growth year for 2026, citing improvements in endpoint IC volumes and new account opportunities [8] - The company anticipates a decline in Q1 revenue due to inventory burn down and project timing, but expects conditions to improve thereafter [8][10] - Management highlighted the importance of maintaining strong relationships with end customers and adapting to their needs [58] Other Important Information - The company ended Q4 with record cash and cash equivalents of $279.1 million, compared to $265.1 million in Q3 2025 [19] - Free cash flow for 2025 was $45.9 million, indicating strong cash generation capabilities [19] Q&A Session Summary Question: Can you break down the Q1 guidance miss? - Management explained that the sequential decline in endpoint IC revenue is primarily due to inventory burn down and retail weakness, with strong January turn orders indicating potential recovery [21][23] Question: What gives confidence that the situation will improve by Q2? - Management noted that they see positive signals from new accounts and inventory normalization based on retailer feedback [26][28] Question: Will logistics normalize in Q2 as well? - Management indicated that while apparel is expected to normalize, logistics may take longer due to ongoing inventory corrections [32][33] Question: How does the custom chip impact pricing? - Management stated that the custom chip is priced to market, aiming to drive ROI for both the customer and the company [112] Question: What is the competitive landscape against non-RFID components? - Management remains confident in RAIN RFID as a long-term solution, viewing other technologies as complementary rather than competitive [104][106]

Core Viewpoint - IBM reported strong earnings but faced a significant stock decline due to concerns over slowing growth in its software segment, particularly in cloud services [2][3][5] Financial Performance - IBM's adjusted earnings per share were $2.65, exceeding the consensus estimate of $2.45 [2][5] - Revenue reached $16.33 billion, surpassing the anticipated $16.09 billion [2][5] Stock Performance - IBM's stock experienced a 7% decline in after-hours trading following the earnings report [2][5] - The stock price fluctuated, with a recent increase of 1.94% to $287.51, having a low of $281.35 and a high of $289.13 on the same day [4] - Over the past year, IBM's stock ranged from a high of $301.04 to a low of $203.51, with a current market capitalization of approximately $267.8 billion [4] Analyst Ratings - UBS maintained a "Sell" rating for IBM and adjusted its price target to $210 from $200 [1][5]

Group 1 - Instacart announced the acquisition of Wynshop, a cloud-based e-commerce solutions provider for grocers, to enhance its enterprise solutions and improve online experiences for retailers [1] - Wynshop, launched in 2020, offers online storefronts and AI-powered personalization tools, and will operate as a wholly owned subsidiary of Instacart [2] - This acquisition marks Instacart's sixth acquisition, following previous purchases including Caper AI and Eversight [3] Group 2 - The integration of Wynshop's technology is expected to strengthen Instacart's e-commerce, advertising, fulfillment, and in-store offerings over time [2] - Instacart is set to report its first-quarter 2025 financial results after the market close [3]