Financial Data and Key Metrics Changes - In 2025, the company generated $255 million in total revenues, representing a 29% growth compared to 2024 [11] - Total assets under management (AUM) reached $50 billion at year-end, up 10% year-over-year [13] - Adjusted EBITDA increased 45% to approximately $35 million for the year [17] - The company reported a net loss of $155 million for the year, largely driven by non-cash non-recurring items [18] Business Line Data and Key Metrics Changes - The core revenue base remained anchored in nearly $200 million of predictable recurring management fees, which increased by 9% year-over-year [11][15] - The endowment and foundation business grew to more than $8 billion in AUM at year-end 2025 [8] - Incentive fees contributed significantly to revenue, with a $29 million contribution in the fourth quarter alone [14] Market Data and Key Metrics Changes - The company experienced strong demand from ultra-high net worth and institutional clients across U.S. and international businesses, adding nearly $4 billion in projected billable assets in 2025 [9] - The international business faced foreign exchange headwinds due to U.S. dollar depreciation, impacting growth [13] Company Strategy and Development Direction - The company aims to build a premier global wealth management platform focused on the ultra-high net worth segment [4] - A strategic assessment led to the exit of the non-core International Real Estate business, allowing for a simplified organizational structure [10] - The adoption of zero-based budgeting is expected to yield approximately $20 million in recurring annual gross savings by year-end 2026 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustained growth and increased profitability over time, supported by a focused strategy and durable client relationships [19] - The company anticipates that 2026 will mark a turning point, with improved visibility of operating leverage and expense trends as initiatives take hold [18] Other Important Information - The company has formed a special committee to review strategic options to maximize long-term shareholder value, with no proposals received to date that encapsulate the business's long-term value [12] Q&A Session Summary Question: Could you provide more color on the decision to transition CEOs? - Management indicated that the transition was a thoughtful decision aimed at positioning the company for its next phase of growth while maintaining continuity in strategy [24] Question: Can you provide an update on the zero-based budgeting (ZBB)? - ZBB is expected to yield $20 million in savings over approximately nine quarters, with improvements in non-comp expenses and occupancy costs anticipated as contracts expire [47] Question: What is the status of Allianz's 13D filing? - Allianz has been a strategic partner, and any plans to increase engagement would require a filing, but there is currently no visibility into their intentions [43][44] Question: Can you discuss the merger arbitrage performance? - The merger arbitrage strategy performed well in 2025, generating an 11.3% return, which positively impacted management fees and incentive fees [35][36] Question: What is the outlook for capital and potential acquisitions? - The company does not foresee a need for funding for organic growth initiatives but is confident in its ability to raise capital for attractive inorganic opportunities if identified [51][53]

Core Insights - COSCIENS Biopharma Inc. has voluntarily delisted from Nasdaq while retaining its listing on the TSX, marking a strategic shift to reduce public reporting obligations in the U.S. [4][5] - The company has successfully implemented a zero-based budgeting initiative, resulting in a 59% reduction in operating expenses compared to Q3 2024, leading to significantly lower cash outflows [3][15] - The gross margins improved by 700 basis points in Q3 2025 due to cost-cutting measures and operational improvements [2][3] Financial Performance - For Q3 2025, COSCIENS reported a consolidated net loss of $1.8 million, a decrease from a net loss of $5.8 million in Q3 2024, reflecting a $4.0 million improvement [15][18] - Total revenue for Q3 2025 was $1.5 million, down from $1.9 million in the same period in 2024, primarily due to decreased sales in key product lines [16][19] - Operating expenses for Q3 2025 were $2.9 million, significantly lower than $7.3 million in Q3 2024, driven by reductions in research and development costs and other expenses [17][20] Strategic Developments - The company has suspended its Juvente cosmeceuticals line due to limited success in e-commerce channels, focusing instead on core business areas [8] - COSCIENS is evaluating its pharmaceutical products, including Macrilen, which did not meet primary endpoints in a recent trial but still provides insights for future development [12] - The company is exploring new market opportunities for its active ingredients and has completed construction of its PGX technology units in Edmonton and Austria [10][11] Corporate Actions - Following the Nasdaq delisting, COSCIENS has applied for quotation on the OTCQB Venture Market, although approval is not guaranteed [4] - The company plans to file a Form 15-F with the SEC to terminate its U.S. reporting obligations, which would take effect 90 days after filing [4][5] - Management is focused on enhancing operational efficiency and reducing costs to maintain competitiveness in the current economic environment [5]

Core Viewpoint - COSCIENS Biopharma Inc. has approved a plan to voluntarily delist from Nasdaq while maintaining its listing on the Toronto Stock Exchange (TSX) to focus resources on core business needs and enhance operational efficiency [1][8]. Financial Highlights - For Q2 2025, total revenue was $2.7 million, a 17% increase compared to $2.3 million in Q2 2024 [17]. - Gross profit for Q2 2025 increased by 19% compared to the same period in 2024 [7]. - Operating expenses decreased by 28% compared to Q2 2024, totaling $3.3 million [18]. Strategic and Operational Updates - The company underwent a leadership change with a new CEO and a reconstituted Board of Directors, focusing on operational discipline and cost control [4][3]. - A zero-based budgeting initiative was launched, resulting in a 27% reduction in headcount to align costs with strategic priorities [6]. - The company is focusing on optimizing its revenue-generating base business and exploring new business development opportunities [5]. Nasdaq Delisting - The decision to delist from Nasdaq was driven by increasing costs associated with maintaining dual listings and a deteriorating cost-benefit ratio [8]. - The company plans to file a Form 25 with the SEC around August 25, 2025, with the delisting expected to be effective on or about September 5, 2025 [9][10]. Product and Market Development - The company is exploring new category expansion opportunities for its active ingredients, including beta glucan and avenanthramides [14]. - Despite challenges in the Macrilen product line, the company is assessing future development options and has ongoing clinical studies for its inflammation-related program [14]. Cash Position - As of June 30, 2025, the company had $9.3 million in cash and cash equivalents [15]. Overall Performance - For the six-month period ended June 30, 2025, the company reported a consolidated net loss of $6.0 million, compared to a loss of $2.8 million for the same period in 2024 [19]. - Total revenue for the six-month period was $4.2 million, a slight decrease from $4.4 million in the prior year [20].