Financial Data and Key Metrics Changes - Total net sales for Q3 2025 were $13.2 million, down 5% sequentially but up 21% year-over-year from $10.9 million [17] - Adjusted EBITDA for the quarter was positive at $669,000, up from an adjusted EBITDA loss of $204,000 in the prior year period [21] - Gross margin for Q3 was 49.8%, up from 48.1% in the prior year period and up 160 basis points sequentially [20] Business Line Data and Key Metrics Changes - Food Service Technology (FST) net sales rose to $4.8 million, up 13% year-over-year, driven by hardware sales and growing recurring revenue [6][17] - Recurring FST revenue climbed to $3.3 million, generating a modest uptick in ARPU to $792 per unit from $700 in the prior year quarter [6][17] - Casino and gaming sales were $7.1 million, up 58% year-over-year but down 7% sequentially, reflecting market rebound and challenges in domestic demand [12][18] Market Data and Key Metrics Changes - The company experienced challenges in the domestic casino market, with indications of slowing demand from partners [12][18] - International markets showed strong performance, contrasting with domestic challenges [13] Company Strategy and Development Direction - The company is focused on a "land and expand" strategy, emphasizing repeatable execution and leveraging competitive advantages [5] - An acquisition of a perpetual license for the BOHA source code was completed for $2.55 million, providing operational freedom and long-term value creation [5][24] - Future projects include the potential development of an app store for BOHA terminals to enhance software revenue [11] Management's Comments on Operating Environment and Future Outlook - Management expects fourth quarter sales to be impacted by domestic market dynamics but remains optimistic about recovery in 2026 [12][31] - The company maintains full-year revenue guidance of $50 million-$53 million, reflecting continued FST expansion and casino stability [13] Other Important Information - The company has $20 million in cash on the balance sheet, providing ample working capital and flexibility [14][22] - Operating expenses for Q3 increased by 8% year-over-year to $6.5 million, with G&A expenses rising due to higher incentive and share-based compensation [21] Q&A Session Summary Question: Update on casino and gaming initiatives and competitive landscape - Management has adjusted the sales compensation plan to incentivize new customer acquisition and competitive wins, focusing on maintaining market share against a major competitor [27][29] Question: Magnitude of fourth quarter impact on casino and gaming - Management noted that demand has weakened and expects the fourth quarter to be weaker than the third quarter, but anticipates recovery in 2026 [30][31] Question: Regulatory developments in non-charitable gaming markets - Management highlighted opportunities for state governments to generate revenue through gaming, suggesting potential for expansion as states follow suit [32][34] Question: New logo acquisition in FST and pipeline development - Management acknowledged that while new logo acquisition was below expectations, the pipeline remains strong, and the focus is on improving metrics throughout the sales process [35][36]

Core Insights - Boyd Gaming (NYSE: BYD) operates four divisions: US, International, UK, and Ireland, with the US brand contributing 40% to total 2024 revenue and 37% from iGaming [1] Group 1: Company Overview - Boyd Gaming has a diversified operational structure with significant revenue contributions from its US division [1] - The skepticism surrounding Boyd Gaming's strategic decisions is noted on platforms like Seeking Alpha [1] Group 2: Leadership and Expertise - Howard Jay Klein, with 30 years of experience in major casino operations, leads the investing group The House Edge, focusing on actionable research in the casino and online betting sectors [1] - Klein's background includes roles at notable casinos such as Ballys, Trump Taj Mahal, Mohegan Sun, and Caesars Palace [1] - The House Edge leverages an extensive intelligence network across the US gambling and entertainment sectors, providing insights from various levels of management [1]

Financial Data and Key Metrics Changes - Total net sales for Q2 2025 were $13.8 million, up 6% sequentially and 19% year over year from $11.6 million [23] - Adjusted EBITDA for the quarter was positive at $478,000, an increase from $89,000 in the prior year period [30] - Gross margin for Q2 was 48.2%, down from 52.7% in the prior year period, attributed to a higher mix of lower-margin FST hardware sales [27] Business Line Data and Key Metrics Changes - Food Service Technology (FST) revenue rose to $4.8 million, up 14% year over year, with recurring FST revenue climbing to $3 million, showing solid gains [13][23] - Casino and gaming revenue reached $7.6 million, up 42% year over year and 14% sequentially, driven by improved market demand and new OEM partnerships [16][26] - POS automation sales declined 49% year over year to $590,000, expected to remain in the $500,000 to $600,000 range per quarter [26] Market Data and Key Metrics Changes - The casino and gaming market is experiencing a rebound, with normalized buying levels from major OEMs and new opportunities in non-casino charitable gaming applications [16][18] - The FST market is seeing strong momentum, with a focus on operational efficiency and sales process improvements contributing to positive results [14][20] Company Strategy and Development Direction - The company has acquired a perpetual license for the BOHA! software source code for $2.55 million, which is expected to generate significant benefits and cost savings in the future [8][12] - The strategy includes a "land and expand" approach to client acquisition, focusing on smaller initial sales with the potential for future expansions [15][37] - Management emphasizes disciplined investments and execution of the corporate plan to maximize shareholder value [20][21] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the company's trajectory, expecting continued growth in FST and stability in the casino and gaming sectors [21][22] - The company raised its full-year revenue guidance to between $49 million and $53 million, reflecting confidence in ongoing market demand [21] - Management acknowledges the need to monitor broader economic factors affecting the casino and gaming industry but does not foresee long-term concerns [20] Other Important Information - The company expects to capitalize $3.55 million of the acquisition costs and begin amortizing it in early 2027 [12][31] - The balance sheet remains solid, with cash and cash equivalents of nearly $18 million at the end of Q2 [30] Q&A Session Summary Question: Satisfaction with FST sales excluding QSR - Management expressed excitement about progress in selling to newer client bases and emphasized the importance of customer engagement and sales training [34][36] Question: Potential for adding software components to QSR sales - Management confirmed ongoing discussions about adding software components to terminal sales for large QSRs [39][40] Question: Market share gains in casino and gaming - Management indicated a focus on gradually eroding competitors' market positions and emphasized the importance of being present in new opportunities [41][42]