Core Insights - The Baron Asset Fund underperformed for the second consecutive quarter, declining 4.23% in Q3 2025, while the Index gained 2.78% [3] - The underperformance was primarily due to the Fund's underexposure to Momentum, Beta, and Residual Volatility factors, which led the market higher [3] - The Fund's overexposure to Earnings Quality negatively impacted performance as lower quality stocks rallied during the quarter [3] Sector Performance - Stock selection in IT and Communication Services accounted for about three-quarters of the underperformance, with significant declines from Gartner, Inc. and StubHub Holdings, Inc. [4] - Weakness in Consumer Discretionary was broad-based, with notable declines from Choice Hotels International, Inc. and On Holding AG [5] - Financials were hindered by FactSet Research Systems Inc. and Morningstar, Inc., affected by industry-wide concerns regarding AI and a shift in investor focus [7] - Health Care showed solid stock selection, driven by strong performance from IDEXX Laboratories, Inc. [8] Key Contributors - IDEXX Laboratories, Inc. contributed 1.13% to returns, benefiting from improved foot traffic and revenue growth in its Companion Animal segment [9] - Amphenol Corporation gained 1.01% as expectations for data center spending rose, bolstered by a significant acquisition [10] - SpaceX reported substantial growth in its Starlink service and continued advancements in rocket technology [11][12] Key Detractors - Gartner, Inc. detracted 2.31% from performance due to disappointing earnings and decelerating contract value growth [13] - StubHub Holdings, Inc. faced challenges post-IPO, with investments impacting near-term results [16] - Verisk Analytics, Inc. was affected by a conservative outlook and concerns about the property and casualty insurance market [17]

Market Overview - U.S. equities experienced broad gains in Q3, driven primarily by the Federal Reserve's decision to cut interest rates by 25 basis points, alongside healthy corporate earnings and reduced trade tensions [2][3] - The "Magnificent Seven" stocks contributed significantly, accounting for 62% of the S&P 500 Index's quarterly gains, with Information Technology, Communication Services, and Consumer Discretionary sectors outperforming the broader market [3] Fund Performance - The Baron Asset Fund underperformed, with Institutional Shares declining 4.23% in Q3, trailing the Russell Midcap Growth Index's gain of 2.78% [9] - The Fund's performance was negatively impacted by underexposure to Momentum, Beta, and Residual Volatility factors, which led the market higher during the quarter [9][10] Sector Analysis - Stock selection in Information Technology and Communication Services was a major contributor to underperformance, particularly due to declines in holdings like Gartner, Inc. and StubHub Holdings, Inc. [11] - Consumer Discretionary sector faced challenges, with notable declines from Choice Hotels International, Inc. and On Holding AG, despite On's strong revenue growth of 38% [12][13] - Financials were hindered by performance issues at FactSet Research Systems Inc. and Morningstar, Inc., while Verisk Analytics, Inc. faced challenges in the Industrials sector [14] Top Contributors and Detractors - IDEXX Laboratories, Inc. was a top contributor, with a 1.13% contribution to return, driven by better-than-expected financial results and improved foot traffic to veterinary clinics [16] - Gartner, Inc. and StubHub Holdings, Inc. were significant detractors, with contributions of -2.31% and -1.39% respectively, due to disappointing earnings and challenging market conditions [19][23] Portfolio Structure - As of September 30, 2025, the Fund held 55 positions, with the top 10 holdings representing 47.2% of net assets, and the largest sector being Information Technology at 24.9% [25][26] - The Fund's investment strategy focuses on long-term holdings in companies with competitive advantages and strong management teams [26] Recent Activity - The Fund initiated a position in Loar Holdings Inc., a niche aerospace parts manufacturer, highlighting the attractiveness of the aerospace industry due to strong growth and pricing power [29][30] - Investments were also made in Skyryse, Inc., which is developing a universal flight operating system aimed at improving aviation safety and accessibility [32] Outlook - The Fund's management remains optimistic about the growth opportunities and competitive positions of its portfolio companies, despite the challenging market environment for high-quality stocks [34][36]

Core Insights - Health Catalyst reported total revenue of $76.3 million for Q3 2025, slightly down from $76.4 million in Q3 2024, but achieved an Adjusted EBITDA of $12.0 million, a 64% increase year-over-year [2][3][4] Financial Performance - Total revenue for the three months ended September 30, 2025, was $76,323,000, compared to $76,353,000 in the same period of 2024, reflecting a negligible change of —% [3] - Gross profit increased to $29,979,000, up 8% from $27,758,000 in Q3 2024, resulting in a gross margin of 39% compared to 36% a year earlier [3] - The company reported a net loss of $22,229,000 for Q3 2025, which is a 51% increase from the net loss of $14,726,000 in Q3 2024 [3] - Adjusted Gross Profit for Q3 2025 was $40,133,000, an 11% increase from $36,289,000 in Q3 2024, with an Adjusted Gross Margin of 53% compared to 48% in the prior year [3][22] - Adjusted EBITDA for Q3 2025 was $12,000,000, significantly higher than $7,295,000 in Q3 2024 [3][33] Financial Outlook - The company reaffirmed its full-year 2025 guidance, expecting total revenue of approximately $310 million and Adjusted EBITDA of approximately $41 million [4][5] Company Overview - Health Catalyst is a leading provider of data and analytics technology and services for healthcare organizations, with over 1,100 clients globally [7] - The company focuses on high-impact solutions that demonstrate proven ROI, aiming to drive sustained value for clients and shareholders [2][7]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached a record $23.1 million, up 21% year-over-year [6][12] - Adjusted gross profit was a record $19.4 million, resulting in an adjusted gross margin of 84%, up one percentage point [6][12] - Adjusted EBITDA for the quarter was a record $9 million, an increase of 35% year-over-year, with an adjusted EBITDA margin of 39%, up four percentage points [12] - Adjusted net income increased 75% to a record $5.8 million, resulting in adjusted earnings of $0.39 per diluted share [12][17] - Free cash flow for the quarter was a record $7.3 million, a 51% increase from $4.8 million a year ago [17] Business Line Data and Key Metrics Changes - IDI added over 300 customers, ending the quarter with over 9,800 customers [6][12] - Forewarn added over 25,000 users, with over 590 realtor associations contracted [6][12] - The investigative vertical showed strong performance, driven by demand from law enforcement and investigative customers [12][14] - The emerging markets vertical, including retail, legal, repossession, government, and healthcare, contributed to growth [12][14] - Collections experienced high teens revenue growth, indicating a steady recovery [14] Market Data and Key Metrics Changes - Government sector wins included contracts with state toll authorities and departments of revenue, indicating strong public sector performance [7][22] - Gross revenue retention remained strong at 96%, improving by two percentage points year-over-year [15] Company Strategy and Development Direction - The company continues to invest in platform capabilities, product advancements, and AI integration to enhance competitive advantages [6][8] - The strategic focus is on expanding go-to-market capabilities and enhancing proprietary data assets [8][9] - A $15 million increase to the share repurchase program was announced, reflecting confidence in the company's growth trajectory [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in closing out 2025 as another record year, supported by a strong sales pipeline and disciplined execution [11][18] - The company is excited about the opportunities in the public sector and background screening markets, anticipating significant growth in 2026 [22][25] Other Important Information - Cash and cash equivalents were $45.4 million at the end of Q3 2025, up from $36.5 million at year-end 2024 [17] - The company purchased 15,437 shares at an average price of $42.26 during the quarter [17] Q&A Session Summary Question: Details on traction with larger public and enterprise sector customers - Management highlighted investments in the public sector division and background screening solutions, noting recent wins with state toll authorities and large payroll processors [22][23] Question: Addressable market for large toll authorities and payroll processing - Management indicated that every state has some form of toll authority, presenting substantial market opportunities, and emphasized the enormous background screening industry [24][25] Question: Renewals and ARPU growth for Forewarn - Management confirmed strong renewals and retention rates for Forewarn, with plans to add features that could enhance pricing during renewals [30][32] Question: Customer pipeline for Q4 - Management expressed excitement about the strong customer pipeline but noted potential seasonal slowdowns in Q4 due to fewer business days [34] Question: Expectations for gross margin in Q4 - Management expects gross margins to remain consistent with Q3 levels, around 82%-84% [38] Question: Attractiveness of current share price for buyback - Management affirmed that the current share price is attractive and emphasized the importance of investing in the business for long-term growth [39]

Financial Performance - The company's Annual Recurring Revenue (ARR) reached $516 million, showing a 7% year-over-year growth[9] - Subscription revenue accounted for 76% of the company's total revenue on a trailing twelve-month (TTM) basis[9] - The company's Q2 FY26 revenue was $200 million, reflecting an 8% year-over-year increase[12] - Non-GAAP operating margin was 19% on a TTM basis[9] - Free cash flow was $148 million, resulting in a 19% free cash flow margin on a TTM basis[9, 42] Customer Metrics - The company has 132 customers with over $1 million in annualized subscription revenue[9, 34] - Subscription Net Retention was 102%[9] - Platform Net Retention was 105%[9] Revenue Breakdown - Subscription revenue in Q2 FY26 was $150 million, a 5% increase year-over-year[14] - Marketplace & Other revenue in Q2 FY26 was $50 million, an 18% increase year-over-year[14] - US revenue in Q2 FY26 was $189 million, an 8% increase year-over-year[14] - International revenue in Q2 FY26 was $11 million, an 8% increase year-over-year[14] Future Outlook - The company projects Q3 revenue to be between $209 million and $213 million, representing a 7%-9% year-over-year growth[25] - The company projects FY26 revenue to be between $804 million and $818 million, representing an 8%-10% year-over-year growth[25]

Core Insights - NowVertical Group Inc. will announce its Q3 2025 financial results on November 12, 2025, before market opening [1] - A webinar will follow at 11:00 AM EST on the same day to discuss the results and provide a business outlook [1][2] Company Overview - NowVertical is a global data and analytics company that transforms data into business value using AI [4] - The company offers a comprehensive suite of solutions and services to help clients optimize decision-making and improve operational efficiency [4] - NowVertical is growing both organically and through strategic acquisitions [4]

Financial Data and Key Metrics Changes - Total company organic revenues rose 7%, with the big three segments growing by 9% [4][8] - Adjusted EBITDA increased 10% to $672 million, reflecting a 240 basis point margin increase to 37.7% [8][19] - Adjusted EPS was $0.85 for the quarter, compared to $0.80 in the prior year period [19] Business Line Data and Key Metrics Changes - Legal organic revenue grew 9%, improving from 8% in the first half of 2025 [5][17] - Corporate segment organic revenues grew 9%, with recurring revenue growing 9% and transactional revenue rising 5% [17] - Tax and accounting organic revenues grew 10%, driven by Latin American and U.S. businesses [9][17] - Reuters News organic revenues rose 3%, primarily from growth in the agency business [9][18] - Global print organic revenues declined 4% year on year [9][18] Market Data and Key Metrics Changes - The percentage of annualized contract value from GenAI-enabled products increased to 24%, up from 22% last quarter [18] - The company expects organic revenue growth of approximately 7% in Q4, including about 9% for the big three segments [23] Company Strategy and Development Direction - The company is focused on leveraging AI and technology to enhance product offerings and improve operational efficiency [6][16] - A balanced capital allocation approach is maintained, with a commitment to assess additional inorganic opportunities [7][46] - The company aims to achieve approximately 9% organic revenue growth for the big three segments in 2025, despite some temporary headwinds [20][23] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the long-term growth potential of the corporate segment, despite recent sales softness [26][28] - The company anticipates a positive margin expansion and higher free cash flow outlook for 2026 [24][55] - Management highlighted the importance of their proprietary content and editorial expertise in maintaining a competitive edge in the AI landscape [10][15] Other Important Information - The company completed a $1 billion share repurchase program, acquiring approximately 6 million shares [19][20] - The company is committed to investing over $200 million in AI and technology in 2025, continuing into 2026 [54][55] Q&A Session Summary Question: What are the recurring impacts of government and corporate headwinds into next year? - Management expressed confidence in achieving the 9%-11% organic revenue growth target for corporates next year, despite temporary sales softness [26][28] Question: How is customer reaction to Agentic AI products? - Customers have responded positively to Westlaw Advantage and Co-Counsel, with significant changes in their research behaviors noted [30][31] Question: What is the impact of the government shutdown on contracts? - Cancellations occurred prior to the shutdown, which has minimal impact on monthly and quarterly revenue [32] Question: How does the company view competition in the AI assistance space? - The company sees new entrants in the AI assistance space as a growth opportunity, with Co-Counsel positioned well in the market [39][40] Question: What is the pricing strategy in light of AI product value? - The company aims to price based on value delivered, with ongoing discussions about pricing strategies as AI products evolve [49][50] Question: How does the company view innovation and product intensity moving forward? - The company expects to see an acceleration in innovation and product launches, with continued investment in AI [53][54]

Core Insights - LiveRamp has announced expanded measurement capabilities that enhance customer outcomes through its data collaboration network [1] - Retail media networks (RMNs) can now gain new attribution insights from their Meta campaign investments via the LiveRamp Clean Room [1] - By linking Meta campaign results with first-party sales data, RMNs and their partners can analyze how off-property sites, including Meta, contribute to sales and orders [1]

Core Insights - Planet Labs PBC's subsidiary, Planet Labs Federal, has secured a contract from the National Geospatial-Intelligence Agency (NGA) valued at $12.8 million for Advanced Analytics for Maritime Operations and Reconnaissance (AAMOR) [1] Company Summary - The contract is awarded under the Luno B indefinite delivery, indefinite quantity (IDIQ) framework, indicating a long-term partnership potential with the NGA [1] - Planet Labs will leverage AI-enabled technologies to provide advanced analytics services to the NGA [1]

Core Insights - S&P Global has agreed to acquire With Intelligence, a markets data and analytics firm, for $1.8 billion, which will enhance its data coverage and reach in private markets [1] Company Summary - The acquisition of With Intelligence will allow S&P Global to expand its capabilities in providing data and analytics, particularly in the private markets sector [1] - This strategic move is expected to strengthen S&P Global's position in the competitive landscape of financial data services [1] Industry Summary - The deal reflects a growing trend in the financial services industry where companies are increasingly focusing on enhancing their data analytics capabilities to meet the demands of private market investors [1] - The acquisition is indicative of the ongoing consolidation in the markets data and analytics sector, as firms seek to leverage comprehensive data solutions to gain a competitive edge [1]