Financial Data and Key Metrics Changes - In Q4 2025, total revenue increased by 7.5% year-over-year to $341 million, marking the highest quarterly revenue in the company's history [5][18] - Adjusted EBITDA grew by 19% year-over-year to a record $56 million, reflecting expense discipline and operating leverage [5][18] - For the full year 2025, revenue reached over $1.3 billion, representing an 8% growth compared to 2024, while adjusted EBITDA increased by 11% year-over-year to $210 million [5][19] Business Line Data and Key Metrics Changes - The company supported over 4,500 locations and nearly 28,000 gaming machines nationwide, demonstrating the breadth and durability of its platform [5] - In Illinois, the focus on optimizing the terminal base led to steady hold-per-day improvement and margin expansion [6] - In Nevada, terminal count increased by 13% year-over-year, supported by strategic route expansions [7] Market Data and Key Metrics Changes - Illinois remains the largest market, with ongoing efforts to improve unit economics and expand margins [6] - Louisiana revenue saw significant increases in Q4, supported by bolt-on acquisitions and optimization of the Toucan Gaming platform [8] - Nebraska and Georgia demonstrated strong growth both quarterly and annually, indicating ongoing expansion and increasing leverage of the operating platform [9] Company Strategy and Development Direction - The company aims to drive steady organic growth in core markets, scale profitability in developing markets, and execute accretive tuck-in acquisitions [10][21] - The leadership transition is expected to leverage local and national relationships to capitalize on growth opportunities, particularly in the Chicago VGT market [11] - The company is focused on shifting the route business towards a more entertainment and hospitality-oriented model with higher margins [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Chicago market, noting the acceptance of applications by the Illinois Gaming Board as a positive sign for future revenue generation [25] - The company anticipates that the performance per location in Chicago will exceed that of the rest of its portfolio due to better location selection and equipment [66] - Management remains cautious about the legislative environment in other states, indicating a conservative approach to potential market expansions [40] Other Important Information - The company repurchased approximately 3.8 million shares of common stock during 2025, including 1.5 million shares in Q4 [10][21] - The capital allocation framework remains disciplined, balancing organic investment, acquisitions, and shareholder returns [10][21] Q&A Session Summary Question: What is the status of the Chicago market and potential revenue generation? - Management indicated that while there are still processes to complete, the acceptance of applications is a positive sign for future revenue [25] Question: How does the company view the unit economics in Chicago compared to the rest of the state? - Management believes that while the average equipment may be lower due to space constraints, the higher population density in Chicago should lead to greater average play per machine [26][27] Question: What is the company's perspective on the potential bankruptcy of Hawthorne and its implications? - Management acknowledged the challenges facing Illinois horse racing but expressed optimism about their own operations and readiness for the upcoming season [33] Question: How does the company view potential market expansions in states like Pennsylvania and Virginia? - Management remains cautious about the likelihood of legalization in these states, noting the complexities involved [40] Question: What is the expected impact of increased tax returns on gaming activity? - Management noted a historical correlation between tax returns and increased gaming activity, particularly in the months of February and March [54] Question: How does the company balance growth CapEx with share buybacks? - Management stated that they evaluate every dollar of investment based on return potential, with a focus on M&A opportunities if the price is right [58] Question: What is the expected timeline for the rollout of gaming in Chicago? - Management estimates that the market could go live in late Q4 2026 or Q1 2027, depending on the speed of regulatory processes [85]

Group 1 - Ziff Davis (ZD) relies on tuck-in acquisitions for topline growth due to challenges in achieving organic growth [1] - The market shows significant concern regarding Ziff Davis's growth strategy and performance [1] Group 2 - The individual investor focuses on undercovered companies, particularly in technology, software, electronics, and energy transition sectors [1] - The investor has over 7 years of personal capital investment experience across a broad range of global companies [1] - The investor aims to identify asymmetric investment opportunities to achieve market-beating returns [1]