Financial Data and Key Metrics Changes - Revenue increased by 36.7% year-over-year to $49.3 million in Q3 2025, with a 29% increase excluding Keystone [11][12] - Medical segment-adjusted EBITDA margin rose to 15.1% in Q3 2025 from 12.5% in the first half of the year [12][13] - Free cash flow from continuing operations was approximately $2 million for the quarter [13] Business Line Data and Key Metrics Changes - Organ placement services revenue more than doubled year-over-year, indicating strong growth in this area [11] - Air logistics contributed significantly to organic revenue growth, with new and existing customers driving strong results [11][12] - Keystone's revenue increased over 40% year-over-year for the full month of September, despite only contributing $2.8 million for half of Q3 [12] Market Data and Key Metrics Changes - Industry-wide NRP adoption rates continued to increase, with transplants of organs undergoing NRP approximately doubling compared to the prior year [9][10] - Despite a seasonal decline in industry transplant volumes of approximately 6%, the company achieved a 3% sequential revenue increase [11] Company Strategy and Development Direction - The company has rebranded as Strata Critical Medical and shifted focus to healthcare, aiming for long-term growth and value creation [5] - The integration of Keystone Perfusion is expected to enhance operational efficiencies and cost savings for the transplant community [8][9] - The company plans to leverage local resources to reduce transportation costs and improve service delivery [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand seen in Q3, leading to an increase in 2025 revenue guidance to a range of $185 million-$195 million [16] - The company anticipates continued growth driven by new customer acquisitions and market share consolidation in a fragmented marketplace [22] - Management acknowledged the impact of seasonal factors on transplant volumes but emphasized the company's ability to grow through these challenges [39] Other Important Information - The company ended the quarter with no debt and approximately $76 million in cash and short-term investments [15] - The Joby transaction closed during the quarter, with cash proceeds of approximately $70 million from monetizing shares [15] Q&A Session Summary Question: Can you provide a disaggregation of where the growth came from in terms of revenue during Q3? - Management indicated that growth was driven by a mix of new customer acquisition and strength within existing customers, with new services contributing to the results [20][21] Question: Do you see the growth coming from similar directions in the future? - Management expects continued customer additions and market share consolidation, supported by favorable industry growth dynamics [22] Question: What should we expect in terms of fleet margin and maintenance impact for the remainder of the year? - Management noted that scheduled maintenance events have decreased and margins are expected to improve sequentially [23] Question: How many individual customers are being served now with the Keystone acquisition? - The company serves almost 250 different customers across cardiac care and transplant businesses, providing geographic diversity [29] Question: Is there any customer that constitutes 5% or more of revenues? - Management stated that the business is diversified, and they do not break out customer contributions by business line [30] Question: Are you evening out the revenue sides between air and ground logistics? - Air remains the larger part of the business, but the Keystone acquisition provides opportunities for ground logistics growth [32] Question: Will you break out logistics versus perfusionist side in the future? - Management indicated that a pro forma business mix will be provided in the investor deck, reflecting the expected future mix [33]

Financial Data and Key Metrics Changes - In the third quarter, net income was $32.9 million or $0.65 per diluted share, compared to $38.7 million or $0.76 per diluted share in the prior year quarter [4][7] - Revenues for the third quarter increased 23% to $390.5 million compared to $318.4 million in the prior year quarter [7] - Gross profit margin for the quarter was 20.4%, down from 22.5% in the same quarter last year; excluding the impact of a low-margin community closeout, the gross margin would have been approximately 21.1% [7][8] Business Line Data and Key Metrics Changes - Lots sold increased 11% year over year and 6% sequentially to 3,605 lots, with an average sales price of $106,600 [4][9] - Lots under contract to sell increased 26% from a year ago to 25,700 lots, representing 38% of the owned lot position and $2.3 billion of future revenue, marking the highest contracted backlog in five years [5][13] Market Data and Key Metrics Changes - The company noted that new home sales have been slower than last year due to affordability constraints and weaker consumer confidence, but mortgage rate buy-down incentives are helping to spur demand [11] - The availability of contractors and necessary materials remains solid, and land development costs have stabilized [11] Company Strategy and Development Direction - The company is focused on turning inventory, maximizing returns, and consolidating market share in a highly fragmented industry [5] - The strategic goal includes increasing market share within D.R. Horton, which currently accounts for 15% of their lots, with a target to double that in the intermediate term [12][42] Management's Comments on Operating Environment and Future Outlook - Management expects home affordability constraints and cautious home buyers to continue to be a near-term headwind for new home demand, but remains confident in long-term demand for finished lots [17] - The company is maintaining its fiscal 2025 revenue guidance of $1.5 billion to $1.55 billion while lowering lot delivery guidance to 14,500 to 15,000 lots [17] Other Important Information - The company ended the quarter with $792 million of liquidity, including an unrestricted cash balance of $189 million [15] - Total debt at June 30 was $873 million, with a net debt to capital ratio of 28.9% [15] Q&A Session Summary Question: Regarding gross margins and their future outlook - Management indicated that the gross margin for the quarter was at the lower end of the historical range of 21% to 23%, but sees no indication of significantly lower margins going forward [20][25] Question: On development costs and their stability - Development costs have stabilized and are classified as flattish quarter over quarter, with no significant declines observed [26] Question: Clarification on revenue guidance and pricing - The company reiterated revenue guidance while trimming volume guidance, attributing this to a higher average selling price driven by lot price increases and community mix [31][32] Question: Insights on new market entries - The company has entered new markets in the Pacific Northwest, Northern California, Salt Lake, and Reno, with teams actively building support in these regions [35] Question: Consideration of conversion to a REIT structure - Management clarified that there is no consideration for conversion to a REIT, as the focus remains on being a developer rather than a land banker [37] Question: Impact of D.R. Horton's slower growth on future plans - The company sees significant growth opportunities within D.R. Horton and is also expanding its customer base with other builders [42]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported net income of $32.9 million, or $0.65 per diluted share, compared to $38.7 million, or $0.76 per diluted share in the prior year quarter [4][7] - Revenues increased by 23% to $390.5 million from $318.4 million in the prior year quarter [7] - Gross profit margin for the quarter was 20.4%, down from 22.5% in the same quarter last year, primarily impacted by the closeout of a low-margin community [7][8] - Pre-tax income was $43.6 million, down from $51.6 million in the third quarter of last year, with a pre-tax profit margin of 11.2% compared to 16.2% in the prior year quarter [8] Business Line Data and Key Metrics Changes - Lots sold increased by 11% year-over-year and 6% sequentially to 3,605 lots, with an average sales price of $106,600 [4][9] - Lots under contract to sell increased by 26% from a year ago to 25,700 lots, representing 38% of the owned lot position and $2.3 billion of future revenue, marking the highest contracted backlog in five years [5][14] Market Data and Key Metrics Changes - The company noted that new home sales have been slower due to affordability constraints and weaker consumer confidence, but mortgage rate buy-down incentives are helping to stimulate demand [12] - The availability of contractors and necessary materials remains solid, and land development costs have stabilized [12] Company Strategy and Development Direction - The company is focused on developing lots for new homes targeting entry-level and first-time buyers, which is the largest segment of the new home market [12] - The company aims to consolidate market share in the highly fragmented lot development industry, leveraging its financial strength and operational expertise [5][6] - The company is maintaining its fiscal 2025 revenue guidance of $1.5 billion to $1.55 billion while lowering lot delivery guidance to 14,500 to 15,000 lots [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term demand for finished lots despite near-term headwinds from home affordability constraints and cautious home buyers [19] - The company is well-positioned to take advantage of attractive opportunities due to its strong liquidity and capital structure [17][18] Other Important Information - The company ended the quarter with $792 million of liquidity, including an unrestricted cash balance of $189 million [17] - Total debt was $873 million, with a net debt to capital ratio of 28.9% [17] Q&A Session Summary Question: Impact of gross margins and future expectations - Management indicated that the gross margin for the quarter was at the lower end of the historical range of 21% to 23%, with no significant indicators of reduced margins going forward [22][25][28] Question: Development costs stabilization - Management confirmed that development costs have stabilized and are flattish quarter over quarter, with no significant declines observed [29] Question: Guidance clarification on volume and pricing - Management explained that the higher average selling price (ASP) is due to a mix of communities and lot price increases, leading to maintained revenue guidance [34][35] Question: New market entry and regional focus - The company is expanding into new markets such as the Pacific Northwest and Northern California, with teams on the ground to support growth [38] Question: Consideration of REIT structure - Management clarified that the company is focused on being a developer rather than converting to a REIT structure [40] Question: Growth opportunities with D.R. Horton - Management expressed optimism about growth opportunities within D.R. Horton, aiming to double their market share in the intermediate term [44]

Financial Data and Key Metrics Changes - In Q2 2025, the company generated net income of $31.6 million or $0.62 per diluted share on revenues of $351 million, compared to $45 million or $0.89 per diluted share in the prior year quarter [7][12] - Revenues increased by 5% from $333.8 million in the prior year quarter [12] - Gross profit margin for the quarter was 16.6% compared to 22.9% for the same quarter last year, primarily due to nonrecurring high-margin items in the prior year [12][13] - Pre-tax income was $40.7 million compared to $58.9 million in the second quarter of last year [13] Business Line Data and Key Metrics Changes - Lots sold increased by 4% to 3,411 lots with an average sales price of $101,700 [14] - Lots under contract to sell increased by 41% from a year ago to 25,400 lots, representing 37% of the company's own lot position [7][24] - The current backlog represents $2.3 billion of future revenue [8][24] Market Data and Key Metrics Changes - The company entered 10 new markets in the last year and increased community count by 21% [8][16] - The home building industry is facing headwinds from home affordability constraints and declining consumer confidence, leading to a slower than expected start to the spring selling season [9][32] - Demand in Florida is weaker compared to Texas, with some strength noted in markets like Las Vegas and the Carolinas [57] Company Strategy and Development Direction - The company aims to consolidate market share in the highly fragmented lot development industry while moderating the pace of land acquisition [10][34] - The focus remains on developing lots for new homes at affordable price points, with 79% of investments this quarter directed towards land development [10][26] - The company expects to invest approximately $1.9 billion in land acquisition and development in fiscal 2025, subject to market conditions [27] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued headwinds from homeowner affordability constraints and cautious homebuyers affecting lot deliveries [32] - The company is confident in the long-term demand for finished lots and its ability to gain market share [34] - Management has updated guidance for fiscal 2025, expecting to deliver between 15,000 and 15,500 lots, generating between $1.5 billion and $1.55 billion of revenue [33] Other Important Information - The company ended the quarter with $792 million of liquidity, including an unrestricted cash balance of $174 million [28] - Total debt at March 31 was $873 million, with no senior note maturities until May 2026 [29] - The capital structure provides operational flexibility and positions the company to take advantage of attractive opportunities [30] Q&A Session Summary Question: Guidance change context - The guidance change is mostly prospective, reflecting community-level inventory buildup, with no anticipated margin changes [38][40] Question: Flexibility of raw land sellers - There is more flexibility on terms from raw land sellers, but prices remain firm [44] Question: Lot banker deal specifics - The company allows home builders to assign contracts to lot bankers, maintaining the same pricing as contracted with builders [45][47] Question: Balancing increased costs with weak market - SG&A increase is tied to headcount growth to support active projects, with expectations for SG&A as a percentage of revenues to decrease in the second half of the year [50][53] Question: Impact of tariffs on land development costs - Currently, there are no significant cost increases from trade partners, and it is too early to assess tariff impacts [55] Question: Demand characterization in Texas and Florida - Demand in Florida is weaker compared to Texas, with strong activity in sales centers despite affordability challenges [57] Question: Sensitivity of land development spend to demand - The company can moderate spend based on demand changes, with a robust pipeline of projects available [64] Question: Competitors' pullback and market share - The company sees opportunities to consolidate market share as competitors pull back [66] Question: Federal deregulation impact on lot supply - It is too early to determine the impact of federal deregulation on lot supply [75] Question: Long-term margin outlook - Margins have remained stable over the past few years, with expectations for continued stability subject to market conditions [77]

Core Viewpoint - Rocket Companies is acquiring Mr. Cooper Group in an all-stock deal valued at approximately $9.4 billion, aiming to consolidate market share in a challenging high-interest-rate environment [3][4]. Group 1: Acquisition Details - Rocket will incur $400 to $500 million in acquisition-related expenses but anticipates realizing $500 million in annual pretax savings [3]. - The acquisition is expected to be immediately accretive to earnings, with a projected earnings boost in the mid-teens percentile by 2026 [3]. - The deal will add 7 million clients to Rocket's customer base, positioning the company to be involved in one out of every six mortgages in the U.S. [3]. Group 2: Strategic Rationale - The acquisition is part of Rocket's strategy to gain market share amid a difficult mortgage sector, which has been affected by high-interest rates [2]. - Mr. Cooper Group's revenue model, which focuses on mortgage servicing, is expected to provide revenue diversity for Rocket, as this segment performs better in a high-rate environment [5]. - The combined company will have a more balanced revenue stream from both origination and mortgage servicing rights (MSR), potentially leading to better valuation and less dependency on interest rate fluctuations [5][6]. Group 3: Leadership Changes - Following the acquisition, Jay Bray, the current chairman and CEO of Mr. Cooper Group, will become president and CEO of Rocket Mortgage [4].

Financial Data and Key Metrics Changes - In Q1, net income was $16.5 million or $0.32 per diluted share, down from $38.2 million or $0.76 per diluted share in the prior year quarter [6] - Revenues totaled $250.4 million compared to $305.9 million in the prior year quarter, reflecting a decrease [6][7] - Pre-tax income was $21.9 million, down from $51.2 million in the same quarter last year, with a pre-tax profit margin of 8.7% compared to 16.7% previously [6][8] - SG&A expenses increased by 29% to $36 million, primarily due to a 30% increase in employee count [8] Business Line Data and Key Metrics Changes - The company sold 2,333 lots in the quarter with an average sales price of $105,500 [7] - The owned lot position increased by 23% year-over-year, and community count rose by 25% [5] - The gross profit margin for the quarter was 22%, slightly down from 23.8% in the prior year quarter [8] Market Data and Key Metrics Changes - Demand for finished lots remains solid, with owned lots under contract doubling from a year ago [4] - The company’s total lot position increased by 29% to 106,000 lots, with 64% owned and 36% controlled through purchase contracts [13] - The backlog of contracted lots is expected to generate approximately $2.2 billion in future revenue [14] Company Strategy and Development Direction - The company is focused on investing in land acquisition and development, with a planned investment of approximately $2 billion in fiscal 2025 [12] - The strategic goal is to double market share to 5% over the intermediate term [19] - The company aims to maintain a disciplined approach to capital investment while enhancing long-term value [19] Management's Comments on Operating Environment and Future Outlook - Management noted that while home inventories have increased, affordable housing supply remains limited, with favorable demographics supporting housing demand [8] - The company expects Q1 to be the lowest delivery quarter of the fiscal year, with higher revenues anticipated in the second half [18] - Management expressed confidence in the company’s position to gain market share in the fragmented lot development industry [19] Other Important Information - The company ended the quarter with $645 million in liquidity, including $132 million in cash [14] - The corporate credit rating was upgraded from B+ to BB- [14] - The company’s capital structure provides operational flexibility and positions it to take advantage of attractive opportunities [15] Q&A Session Summary Question: Can you provide more detail on the stabilization of costs in land development? - Management indicated that development costs have stabilized over the past 12 months, with no significant price increases observed [23] Question: How do you expect employee count growth to impact cost leverage in the next year or two? - Management expects SG&A expenses to moderate for the remainder of the year, anticipating high single-digit growth [26] Question: What drove the higher revenue per lot this quarter? - The increase was attributed to a specific infill project with significant lot prices that skewed the average sales price upward [28] Question: How has builder demand been trending year to date? - Builder demand remains strong, particularly for new communities, with existing communities also seeing solid demand [32] Question: Can you elaborate on the cadence of deliveries for the rest of the year? - Management noted that Q1 is typically the lowest delivery quarter, with a majority of deliveries expected in the second half of the year [34]