Group 1: Market Overview - In the fourth quarter of 2025, the S&P 500 returned 2.65%, leading to a full-year return of 17.9% for 2025, with annual growth of over 21% over the last three years [1] - Market leadership was characterized by High Beta and Momentum factors, with narrow participation, although sectors like Healthcare, Financials, and Consumer Discretionary showed slight improvements [1] - Mega-cap technology companies remained the primary drivers of the S&P 500's overall return, indicating high stock concentration [1] Group 2: Madison Large Cap Fund Performance - The Madison Large Cap Fund (Class I) appreciated 3.43% in the fourth quarter, outperforming the S&P 500 Index's return of 2.65% [1] - The fund's investor letter highlighted its top five holdings, showcasing its best picks for 2025 [1] Group 3: Copart, Inc. (NASDAQ: CPRT) Analysis - Copart, Inc. is an online vehicle auction and remarketing services company with a market capitalization of $34.15 billion [2] - The stock closed at $35.28 per share on February 24, 2026, with a one-month return of -13.15% and a 52-week loss of 37.30% [2] - Copart was among the bottom five detractors for the quarter, with slowing volume growth attributed to more under-and-uninsured auto drivers and shifting market share among insurance carriers [3] - Despite recent challenges, Copart's earnings have grown healthily over the past few years, and its competitive position remains strong [3] Group 4: Hedge Fund Interest in Copart - At the end of the fourth quarter, 68 hedge fund portfolios held Copart, up from 59 in the previous quarter, indicating growing interest [4] - While acknowledging Copart's potential, the company believes certain AI stocks offer greater upside potential and less downside risk [4]

Core Insights - The company experienced a 12% year-over-year increase in units sold, attributed to deeper franchise rooftop penetration reaching 35% [1] - Revenue growth was driven by the expansion of value-added services, with ACV Transport and ACV Capital growing by 20% and 48% respectively [1] - The 'ACV Guarantee' offering constituted 19% of the total mix in Q4, differentiating the company by mitigating seller market risk and enabling no-reserve auctions for buyers [1] Operational Performance - Operational execution focused on enhancing marketplace health through stricter seller rules and the removal of 'bad actors', leading to improved buyer satisfaction and conversion rates [1] - Market share gains in established regions were complemented by accelerated growth in emerging markets, with an increased footprint of territory managers and inspectors [1] Integration and Market Dynamics - The integration of ClearCar and ACV Max is enhancing wallet share, with new Max dealers increasing their wholesale volumes by an average of 40% within one quarter [1] - Despite challenges in the broader dealer wholesale market, approximately 70% of business still occurs at physical auctions, indicating a significant opportunity for digital conversion [1]

Financial Data and Key Metrics Changes - Q4 revenue reached $184 million, representing a 15% year-over-year growth, with full-year revenue growth at 19% [6][16] - Adjusted EBITDA for Q4 was $8 million, growing 36% year-over-year, while non-GAAP net loss was $1 million, which was favorable compared to guidance [16][18] - Auction assurance revenue constituted 55% of total revenue, growing 11% year-over-year, while marketplace services revenue grew 23% year-over-year [17] Business Line Data and Key Metrics Changes - Dealer wholesale business showed solid execution, with 193,000 vehicles sold in Q4 and a total of 86,000 units sold for the full year, marking a 12% increase year-over-year [5][6] - ACV Transport experienced a 20% revenue growth in Q4, delivering 110,000 transports [11] - ACV Capital reported a 48% year-over-year growth in Q4, despite reducing exposure to higher-risk customer segments [11] Market Data and Key Metrics Changes - The company achieved a franchise rooftop penetration of 35% during the year, with a 300 basis point increase in major account penetration [8] - Strong growth was noted in established regions, with specific emerging regions targeted for accelerated growth through increased territory management [10] Company Strategy and Development Direction - The company aims for low double-digit revenue growth and approximately 28% Adjusted EBITDA growth in 2026, supported by investments in growth initiatives [5][20] - The strategy focuses on three pillars: growth, innovation, and scale, leveraging AI to enhance marketplace experiences and drive dealer adoption [6][12] - The company is committed to expanding its addressable market and enhancing technology to improve resilience against market challenges [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenging market conditions and emphasized the importance of technology enhancements and operational models [21] - The outlook for 2026 remains cautious, with expectations of flat dealer wholesale market conditions, despite early signs of improvement [101] Other Important Information - The company ended Q4 with $270 million in cash and cash equivalents and $190 million in debt, indicating a solid capital structure [19] - Guidance for Q1 2026 anticipates revenue between $200 million and $204 million, with Adjusted EBITDA expected to be $14 million to $16 million [20] Q&A Session Summary Question: Insights on Q4 2025 units sold and ACV MAX adoption - Management acknowledged competitive pressures and market conditions affecting unit sales, while highlighting efforts to increase inspector numbers and regional management to drive growth [24][26] Question: Clarification on 2026 guidance and incremental margins - Management indicated that investments in inspectors and VIPER rollout are contributing to incremental costs, with expectations for market share growth in the latter half of 2026 [30][32] Question: AI risks and differentiation - Management emphasized that the company is an AI disruptor in the automotive space, integrating with various vendors to enhance dealer efficiency and market position [37][42] Question: Conversion rates and regional growth - Management reported improved conversion rates in Q4, attributing success to the no reserve auction offering and stricter seller policies [48][50] Question: VIPER rollout and key performance indicators - Management outlined the focus on helping dealers acquire more vehicles through VIPER, with plans for a broader rollout once initial objectives are met [90][92]

Financial Data and Key Metrics Changes - Q4 revenue reached $184 million, representing a 15% year-over-year growth, with full-year revenue growth at 19% [6][16] - Adjusted EBITDA for Q4 was $8 million, growing 36% year-over-year, while full-year adjusted EBITDA grew over 100% [6][16] - Non-GAAP net loss for Q4 was $1 million, which was favorable compared to guidance [16] Business Line Data and Key Metrics Changes - Dealer wholesale business showed solid execution, contributing significantly to revenue despite challenging market conditions [5] - ACV Transport experienced a 20% revenue growth in Q4, delivering 110,000 transports [11] - ACV Capital reported a 48% year-over-year revenue growth in Q4, despite reducing exposure to higher-risk customer segments [11] Market Data and Key Metrics Changes - The franchise rooftop penetration reached 35%, with a 300 basis point increase in major account penetration [8] - Existing dealers using ClearCar increased their wholesale volumes by over 50% after implementation [9] - The marketplace saw 15,000 unique sellers and over 22,000 unique buyers transacting with ACV [8] Company Strategy and Development Direction - The company aims for low double-digit revenue growth and approximately 28% adjusted EBITDA growth in 2026, supported by growth investments [5][20] - The strategy focuses on growth, innovation, and scale, leveraging AI to enhance marketplace experiences and attract new buyers and sellers [7][12] - The company is expanding its footprint in emerging regions to drive accelerated growth [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenging market conditions and enhancing technology to improve resilience [21] - The outlook for 2026 remains cautious, with expectations of flat dealer wholesale market conditions despite early-year declines [101] - Management emphasized the importance of investments in technology and personnel to drive future growth [26][88] Other Important Information - The company ended Q4 with $270 million in cash and cash equivalents and $190 million in debt [19] - First quarter revenue guidance is set between $200 million and $204 million, with full-year 2026 revenue expected to be between $845 million and $855 million [19][20] Q&A Session Summary Question: Insights on Q4 2025 units sold and ACV MAX adoption - Management noted that Q4 faced tougher comparisons but unit growth for the year was solid at 12% [25] - Plans to enhance ACV MAX adoption include adding more inspectors and connecting it more closely with wholesale [26] Question: Clarification on 2026 guidance and incremental margins - Management indicated that investments in inspectors and VIPER rollout are contributing to incremental margin changes, with expectations for growth in the latter half of the year [32][34] Question: AI's impact on the business model - Management highlighted that ACV is positioned as a disruptor in the automotive industry, leveraging AI to enhance dealer efficiency and market predictions [37][39] Question: Conversion rates and regional growth - Q4 conversion rates improved year-over-year, with management implementing stricter policies to enhance buyer experience [50] - Regional growth in areas like the Carolinas and South Florida was attributed to strong local management and differentiated offerings [52] Question: Update on VIPER rollout and key performance indicators - Management is focused on ensuring VIPER helps dealers acquire more vehicles, with plans to scale the rollout after initial testing [90][92]

Financial Data and Key Metrics Changes - In Q1 fiscal year 2026, GAAP revenue was flat, while consolidated gross merchandise volume (GMV) increased to $398 million and direct profit rose to $57 million [4][11] - GAAP net income increased by 29%, non-GAAP adjusted EBITDA grew by 38% year-over-year to $18.1 million, and adjusted EPS rose by 39% year-over-year to $0.39 per share [4][13] - The company ended the quarter with $181.4 million in cash and no financial debt, providing strategic flexibility for growth investments [5][14] Business Line Data and Key Metrics Changes - The GovDeals segment achieved 7% GMV growth, with a 13% increase in direct profit due to market share expansion and improved rates [5][15] - The SEG segment saw 3% GMV growth and a 16% increase in direct profit, driven by strong buyer participation [6][15] - Direct-to-consumer GMV increased by 40% year-over-year, reflecting growing consumer demand [6] - The CAG segment experienced a 10% decline in GMV but a 17% increase in revenue and a 7% increase in direct profit [15] Market Data and Key Metrics Changes - The company serves 6.2 million registered buyers, a 9% year-over-year increase, with 983,000 auction participants and 264,000 completed transactions in the quarter [9] - Heavy Equipment category logged 27% year-over-year organic GMV growth and 88% growth in the number of transactions [7] Company Strategy and Development Direction - The company is focused on profitable technology-enabled growth, leveraging AI, data analytics, and automation to improve efficiency and customer experience [4][8] - The strategy includes expanding the auction software business and enhancing the marketplace for buyers and sellers [8][10] - The company aims to scale its auction software business to 1,000 customers with annual recurring revenue of $10,000 or more [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's resilience, supported by trends in Circular Commerce, sustainability, and digitization [9] - The outlook for Q2 includes expectations for double-digit adjusted EBITDA growth and continued strength in GovDeals and retail segments [16][19] - Management anticipates GMV to range from $375 million to $450 million in Q2, with GAAP net income expected between $6.5 million and $9.5 million [19][20] Other Important Information - The company conducted $1.5 million in share repurchases during the quarter, with $15 million remaining on the authorization for additional repurchases [14] - The fiscal second quarter guidance reflects a product mix within retail that is expected to be at a slightly lower margin than the previous quarter [17] Q&A Session Summary Question: What are the bigger drivers of tech-enabled growth? - Management highlighted improvements in buyer conversion rates through automation and machine-driven systems, enhancing productivity and accuracy in asset listings [24] Question: How significant is the impact of new clients in CAG and GovDeals? - Management noted a structural improvement in buyer and seller acquisition, with expectations for significant asset sales with Fortune 1,000 clients [26][27] Question: Has the sales force been increased to drive new client acquisition? - Management indicated that most growth is driven by automation, but targeted resources have been added to support sales outreach [31][33] Question: What competitive advantages does the company have in heavy equipment sales? - Management cited lower commission rates, flexibility for sellers, and strong buyer recovery rates as key differentiators [36] Question: What is the status of the Retail Rush product? - Management confirmed that Retail Rush is live and ramping up, with improved recovery rates for assets sold through this channel [38]

Core Insights - The launch of Lloyds Auctions on January 1, 2026, has resulted in over $1 billion in committed art listings, making it one of the fastest-growing art-tech platforms in history [1][6][7] - The platform aims to democratize access to art by connecting sellers directly to a global audience with rigorous authentication and transparent fees [5][7] - The initial auction featured works from renowned Southeast Asian Masters, attracting significant interest from both sellers and collectors [6][7] Company Overview - Lloyds Auctions is a digital-first global marketplace for fine art, combining expert curation, independent authentication, and an intuitive interface [8] - The platform was developed by Giuseppe Cassin, who has over a decade of experience in closing multimillion-dollar deals in the art industry [4][8] - The platform's mission is to make art accessible to everyone in a safe and non-intimidating manner, providing immediate global exposure for emerging artists [7] Market Position - The platform has already secured over 3000 art pieces within its first few weeks, indicating strong market demand [1][6] - Investors and industry insiders are optimistic about the platform's potential to achieve unicorn status, with a valuation exceeding $1 billion [7] - The platform's innovative approach is likened to the disruption caused by Uber in the taxi industry, aiming to transform the traditional art auction model [4][5]

分组1 - TimesSquare Capital Management's "U.S. Small Cap Growth Strategy" reported a gross return of 2.26% and a net return of 2.01% for Q3 2025, significantly underperforming the Russell 2000 Growth Index, which returned 12.19% [1] - The fund's top five holdings were highlighted, indicating its best investment picks for 2025 [1] - ACV Auctions Inc. (NYSE:ACVA) was noted for a one-month return of 6.69%, but its shares have decreased by 57.59% over the past 52 weeks, closing at $8.61 with a market capitalization of $1.562 billion on January 5, 2026 [2] 分组2 - ACV Auctions Inc. experienced a revenue and earnings shortfall due to a lower conversion rate of listings to transactions, attributed to macroeconomic concerns, leading management to reduce guidance for the remainder of 2025 [3] - In Q3 2025, ACV Auctions Inc. reported revenue of $200 million, reflecting a 16% year-over-year increase, but it is not among the 30 most popular stocks among hedge funds, with 39 hedge fund portfolios holding its shares, up from 36 in the previous quarter [4] - The company is viewed as having potential, but certain AI stocks are considered to offer greater upside potential with less downside risk [4]

Company Overview - Opera is a Norway-based tech firm with an enterprise value of approximately $1.28 billion, primarily owned by Kunlun Tech since 2016 [3] - The company has been operational for three decades and focuses on providing faster, smarter, and safer web browsing experiences [2] Financial Performance - In Q3 2025, Opera reported a revenue of $151.9 million, reflecting a 23% year-over-year growth, exceeding analyst expectations by $3.8 million [7] - The company's non-GAAP EPS was 30 cents per share, which missed forecasts by one cent [7] - Year-to-date, Opera's shares have declined by 20% due to increased operating expenses and decreased operating cash flows [6] Market Position and Analyst Insights - Goldman analyst Eric Sheridan highlights Opera's strong fundamentals and operating momentum, despite pressures from competition and investor preferences for larger companies [8] - Sheridan maintains a positive outlook, indicating that Opera is well-positioned to benefit from long-term trends in digital advertising and geographic product mix shifts, projecting sustained double-digit growth [8] - The stock has a Buy rating with a price target of $24.50, suggesting a potential upside of 69% in the coming year [8] Industry Context - The small-cap sector, including Opera, is expected to outperform in early 2026 due to favorable macroeconomic conditions, including accelerating US economic growth and continued Federal Reserve easing [5] - The Russell 2000 index, a benchmark for small-cap stocks, has gained in the mid-teens this year, indicating a positive trend for small-cap investments [5]

Company Overview - RB Global, Inc. (RBA) and Copart, Inc. (CPRT) are leading companies in the global online auction and marketplace sector, primarily focusing on vehicles and commercial assets [1]. Investment Philosophy - The investment philosophy emphasizes the importance of compounding, dividend reinvesting, and patient investing through various market conditions to achieve wealth accumulation [1]. - The approach combines steady investment in high-quality assets with high-risk, high-reward opportunities, underappreciated turnaround plays, and transformative technologies [1]. Academic Background - The individual has a PhD from Brunel University and has been teaching at the college/university level for over 20 years, indicating a strong academic foundation [1].

Company Overview - ACV Auctions, an online used car auction platform, experienced a 35% drop in share price following disappointing third-quarter results and a weak financial outlook [1] - The company reported a GAAP loss of $0.14 per share, which was double the expected loss of $0.07 [2] - Third-quarter revenue reached $199.6 million, meeting Wall Street's expectations and reflecting a year-over-year growth of 16.5% [2] Financial Performance - The fourth-quarter revenue guidance is projected at $182 million, nearly 5% below consensus estimates [2] - Full-year EBITDA guidance of $57 million fell significantly short of the anticipated $68.56 million [2] - The combination of an earnings miss and a weaker-than-expected forecast led to a sharp sell-off in the stock [2] Market Reaction - ACV Auctions' shares are noted for their volatility, with 20 moves greater than 5% over the past year, indicating significant market impact from recent news [4] - The recent drop is considered a rare occurrence for the company, highlighting the market's altered perception of its business following the earnings report [4]