President Marty St. George said fourth-quarter unit revenue (RASM) increased 0.2% year over year, finishing more than two points above the guidance midpoint. He attributed the outperformance primarily to demand strength and revenue streams such as loyalty and ancillary products, adding that early first-quarter booking trends have carried forward.Geraghty also pointed to customer satisfaction gains, including an 8-point increase in Net Promoter Score (NPS) in 2025 and a 17-point gain since early 2024, when J ...

Financial Data and Key Metrics Changes - The company reported net revenue of $49.5 million for Q3 2025, representing a 25% growth quarter-over-quarter, exceeding expectations of approximately $47 million [9][24] - Cash operating expenses were $49.3 million, significantly lower than the target of below $60 million, marking a 43% decrease from Q2 2025 and a 50% decrease from Q1 2025 [10][27] - Cash usage for Q3 was less than $15 million, down 77% compared to Q2 [10][29] - The company narrowed its full-year revenue guidance to the top half of the previously communicated range, now expecting $170 to $175 million [24] Business Line Data and Key Metrics Changes - The company reported 790,000 filled prescriptions as of October 17, 2025, with Q3 seeing 221,000 filled prescriptions, of which 144,000 were covered prescriptions, growing approximately 23% quarter-over-quarter [11][12] - Cash prescriptions filled in Q3 totaled 77,000, reflecting a 38% growth quarter-over-quarter [12] Market Data and Key Metrics Changes - The company has shifted its focus to gastroenterology prescribers, with 70% of prescriptions coming from gastroenterologists [12][13] - The target universe for gastroenterology includes approximately 24,000 writers, with an opportunity to convert 20% to 30% of the 20 million PPI prescriptions written annually, potentially exceeding $1 billion in revenue [16][17] Company Strategy and Development Direction - The company is concentrating on a gastroenterology-focused strategy, aiming to deepen relationships with prescribers rather than broadening the base [12][13] - A salesforce realignment has been implemented to better target gastroenterology practices, with expectations of approximately 300 sales representatives by Q1 2026 [15][90] - The company is also initiating a Phase 2 clinical trial for eosinophilic esophagitis, which could enhance its market position if successful [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving operating profitability by 2026, supported by reduced cash operating expenses and growing revenues [29][75] - The company is monitoring prescription trends and believes that the current cash balance can support operations through the anticipated point of achieving profitability [29][30] Other Important Information - The company has updated its exclusivity status with the FDA, now having exclusivity through May 2032, which may extend to 2033 due to ANDA filing timelines [19][20] - There has been no disruption in the availability of the triple pack product, despite previous concerns [20] Q&A Session Summary Question: Prescription growth expectations for Q4 - Management acknowledged that while prescription growth has been strong, guidance for Q4 reflects a balance between ongoing momentum and the salesforce transition [33][35] Question: Impact of advertising cuts on future quarters - Management indicated that the cuts were not driving top-line growth and do not expect a negative impact from the paused advertising [36] Question: Focus on primary care physicians (PCPs) - The company continues to engage with high-performing PCPs while shifting the majority of salesforce time to gastroenterology [40][41] Question: Sales territory realignment and productivity - The territory realignment has been executed, and the company expects to see productivity reflected in the top line as new representatives are onboarded [89][90] Question: Factors for expanding back into primary care - The decision to return to primary care will depend on metrics such as NBRX per sales call, which is currently higher in gastroenterology [91][92]

Financial Metrics - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) measures a company's operating profitability [1] - EBITDA is widely used to compare financial performance [1]

Core Viewpoint - Biglari reported a significant return to profitability in Q2 2025, with net earnings of $50.9 million, a turnaround from a loss of $48.2 million in the same period last year, primarily driven by investment gains of $61.4 million [1][4]. Financial Performance - Net Earnings: $50.9 million in Q2 2025 compared to a loss of $48.2 million in Q2 2024 [2]. - Pre-tax Operating Earnings: Dropped to $3.7 million from $19.7 million a year earlier, marking an 81.4% decline [4]. - Investment Gains: Reported at $61.4 million, a significant recovery from a loss of $82.6 million in the prior year [2][4]. - Steak n Shake Same-Store Sales Growth: Achieved a growth of 10.7% for both company-run and franchise locations [5]. Business Overview - Biglari operates in multiple sectors, including restaurants (Steak n Shake and Western Sizzlin), insurance focused on commercial trucking, oil and gas assets in the Gulf of Mexico, and media through the MAXIM brand [3]. Operational Insights - The management emphasized that the reported results were heavily influenced by investment gains, and ongoing operating profitability should be assessed separately [4]. - There was a lack of detailed performance information regarding other key segments such as insurance, oil and gas, and media, making it challenging to evaluate their contributions to overall results [5]. Future Outlook - Management did not provide any forward-looking financial guidance for upcoming quarters or the full year, indicating a lack of visibility into future revenue, earnings, or strategic direction [6][7].