Financial Data and Key Metrics Changes - Revenue for the fourth quarter was $58.9 million, a 16% decrease year-over-year and a sequential decrease of 7% compared to the third quarter [14] - Gross profit dollars totaled $9.1 million, a decline of 15% year-over-year and a sequential decline of 21%, resulting in a gross margin of 15.5% [16] - SG&A expenses were $7.7 million, a 24% reduction year-over-year and a 17% reduction sequentially [20] Business Line Data and Key Metrics Changes - The decline in revenue was primarily driven by clients in the industrial end market and the divested mall-related business, accounting for a $10.7 million reduction in quarterly revenue [14] - Despite challenges, the remaining two-thirds of the business saw modest growth of $7.4 million, or about 5% [15] - New business wins and wallet share initiatives launched in the fourth quarter are expected to contribute positively in 2026 [15][18] Market Data and Key Metrics Changes - The overall pipeline remains healthy, but economic uncertainty has led to decision delays among potential clients [7] - The industrial end market continues to face challenges, impacting volumes from industrial customers [5][14] Company Strategy and Development Direction - The company is focused on operational excellence initiatives to drive efficiencies and improve financial performance as market conditions normalize [8][13] - There is an emphasis on expanding wallet share with existing customers and onboarding new clients to enhance revenue streams [10][13] - The company aims to reduce debt and improve cash generation while navigating a challenging operating environment [23][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 was a challenging year due to volume declines from the industrial end market, but expressed confidence in future recovery as macroeconomic conditions improve [12][26] - The company is committed to controlling operational efficiencies and costs despite external challenges [30] Other Important Information - The company divested an underperforming business, complicating year-over-year comparisons [12] - Cash generation improved, with $1 million generated from operations and $1.7 million of free cash flow in the fourth quarter [21] Q&A Session Summary Question: Update on KPIs and operational efficiency initiatives - Management confirmed that KPIs and operational efficiency initiatives are on track, with positive trending despite volume challenges [29][30] Question: Health of the vendor network - Management reported improved relationships with vendors, with lower service disruptions and costs associated with those disruptions at historic lows [31][32] Question: Opportunities for cross-selling and market share expansion - Management indicated that if industrial clients expand operations, the company stands to benefit due to strong relationships with these clients [35][36]

Financial Data and Key Metrics Changes - Revenue for the fourth quarter was $58.9 million, a 16% decrease year-over-year and a sequential decrease of 7% compared to the third quarter [14] - Gross profit dollars totaled $9.1 million, a decline of 15% year-over-year and a sequential decline of 21%, resulting in a gross margin of 15.5% [16] - SG&A expenses were $7.7 million, a 24% reduction year-over-year and a 17% reduction sequentially [20] Business Line Data and Key Metrics Changes - The decline in revenue was primarily driven by clients in the industrial end market and the divested mall-related business, accounting for a $10.7 million reduction in quarterly revenue [14][15] - Despite challenges, the remaining two-thirds of the business saw modest growth of $7.4 million, or about 5% [15] Market Data and Key Metrics Changes - The company observed a soft volume environment affecting industrial customers, with no loss of customers reported [5][6] - New business pipeline has been impacted by economic uncertainty, leading to elongated sales cycles [7] Company Strategy and Development Direction - The company is focused on operational excellence initiatives to drive efficiencies and improve financial performance as market conditions normalize [8][13] - There is an emphasis on expanding wallet share with existing customers and onboarding new clients, particularly in non-industrial markets [10][13] Management Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 was a challenging year due to volume declines from the industrial end market, but expressed confidence in future performance as macroeconomic conditions improve [12][26] - The company is well-positioned to accelerate financial performance and drive shareholder value as conditions improve [27] Other Important Information - The company generated over $1 million in cash from operations and $1.7 million of free cash flow in the fourth quarter [21] - A refinancing of the ABL with Texas Capital Bank was completed to improve financing costs and provide greater flexibility [24] Q&A Session Summary Question: Update on KPIs and operational efficiency - Management reported that KPIs and operational efficiency initiatives are on track, with positive trending despite the difficult volume environment [29][30] Question: Health of the vendor network - Management indicated that vendor relationships have improved, with vendors accepting payment to term and experiencing the lowest service disruptions in history [31][32] Question: Opportunities for cross-selling and market share expansion - Management noted that if industrial clients expand operations, the company stands to benefit due to strong relationships with these clients [35]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $63.3 million, a 13% decrease year-over-year but a sequential increase of 6.4% compared to the second quarter [18] - Gross profit dollars totaled $11.5 million, a decline of 2% year-over-year but a sequential increase of 3.9% [20] - Gross margin was 18.1%, which was 200 basis points better than the prior year but a sequential decline of 40 basis points [20] - SG&A expenses were $9.2 million, a 10% reduction year-over-year [22] - Cash generated from operations was approximately $5.7 million, a sequential improvement of roughly 46% [23] Business Line Data and Key Metrics Changes - The decline in revenue was driven by the divested mall-related business and lower revenue from industrial clients due to challenging market conditions [18] - New clients added over $24 million in incremental revenue year-over-year, contributing to the sequential revenue growth [19] - The onboarding of new clients is progressing as planned, with gross margins from these clients showing consecutive gains [19] Market Data and Key Metrics Changes - Volumes from industrial customers remain subdued, and the pace of adding new clients has been slower than anticipated [9] - The company is focusing on diversifying its customer base by expanding into non-industrial end markets such as retail and hospitality [12] Company Strategy and Development Direction - The company is pursuing operational excellence initiatives aimed at standardizing processes and improving efficiencies [8][25] - A focus on share of wallet opportunities is being emphasized, with efforts to enhance collaboration between relationship managers and sales teams [9][10] - The company aims to broaden its customer base and expand service offerings to existing clients [12] Management's Comments on Operating Environment and Future Outlook - The macro environment remains challenging, but management believes that industrial markets are stabilizing [31] - The company expects to continue experiencing margin pressure but anticipates offsetting this through operational improvements and growing share of wallet with existing clients [17] - Management is confident in the company's ability to execute its value proposition and implement organic initiatives as macroeconomic conditions normalize [25] Other Important Information - The company has improved its vendor relationships, leading to the lowest service disruption rates in its history [15] - A subscription-like model for data access is being envisioned as a potential new revenue stream [16] Q&A Session Summary Question: How are the industrial end markets performing? - Management indicated that while the macroeconomic environment is uncertain, industrial markets are stabilizing, though seasonality will affect Q4 [31] Question: Has the strategy for expanding wallet share changed? - Management confirmed that a more disciplined approach has been implemented, focusing on collaboration between relationship managers and sales teams to enhance wallet share [33][34] Question: What are the expectations for operational improvements in Q4 and 2026? - Management emphasized continuous improvement and the implementation of KPIs to enhance operational performance, expecting positive impacts on financial results [37][45] Question: Can you provide an update on the vendor management platform? - Management reported that the vendor management platform is progressing well, contributing to improved relationships and reduced service disruptions [55] Question: What are the goals for debt reduction moving forward? - Management stated that aggressive debt reduction is a priority, with plans to pay down more expensive debt as cash generation improves [81]