Financial Data and Key Metrics Changes - Sales increased 29% year over year to approximately $26 million in Q3 2025, compared to approximately $20.1 million in Q3 2024 [11] - Year-to-date sales reached $87.3 million for the first nine months of 2025, a 56.7% increase from approximately $55.7 million in the same period last year [14] - EBITDA improved by approximately $2.8 million year to date, moving from a negative $3.2 million in 2024 to a negative $384,000 in 2025 [7][16] Business Segment Data and Key Metrics Changes - The Stran segment achieved nine-month revenue of $60.3 million, up from $52.2 million last year, driven by deeper client relationships and new enterprise wins [5] - The Stran Loyalty Solutions (SLS) segment generated $26.9 million in revenue compared to $3.5 million last year, significantly boosted by the acquisition of Gander Group [5][15] - Operating expenses grew only 30.3% year over year for the first nine months of 2025, while sales grew 56.7% during the same period [6] Market Data and Key Metrics Changes - Elevated tariffs led to increased product costs for direct import orders, particularly affecting the SLS segment, which compressed margins [7] - Buyer hesitation due to tariff uncertainty impacted top-line activity and profitability for the quarter [8] Company Strategy and Development Direction - The company is focused on deepening client relationships, increasing operational efficiency, and maintaining financial discipline [19] - Strategic M&A remains a key pillar of growth, with a disciplined roll-up strategy in a fragmented industry [8] - The company aims to transition into a phase focused on consistent profitability and margin expansion [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Q4 performance, historically the strongest quarter, and emphasized a focus on sustained profitability [26] - The company is prepared to navigate potential economic contractions due to its diversified client base and strong balance sheet [32][33] Other Important Information - The company repurchased approximately 267,000 shares of common stock during Q3, totaling about $408,000 [8] - As of September 30, 2025, the company had approximately $11.8 million in cash, cash equivalents, and investments [17] Q&A Session Summary Question: How are tariffs counted from an accounting perspective? - Management explained that tariffs increased costs significantly, with over $1 million in direct costs that could not be passed on to customers, impacting profitability [22][23] Question: Will the company be positive net income for Q4? - Management indicated that Q4 is historically strong and expressed confidence in achieving sustained profitability moving forward [26] Question: How does the business perform during economic contractions? - Management noted that the business is not heavily reliant on capital expenditure and can pivot easily during economic downturns, with diversified client bases mitigating risks [31][32] Question: What is the methodology for finding acquisition targets? - Management highlighted that the company receives numerous inquiries for acquisitions and attends industry events to identify potential targets, focusing on those without succession plans [36]

Financial Data and Key Metrics Changes - The company reported a 95.2% increase in sales, reaching approximately $32.6 million for Q2 2025, compared to approximately $16.7 million for Q2 2024 [4][11] - Gross profit rose over 80% to approximately $9.9 million, with a gross profit margin of 30.3% for Q2 2025, down from 32.8% in Q2 2024 [4][12] - Net income for Q2 2025 was approximately $643,000, compared to a net loss of approximately $1 million for Q2 2024 [4][13] Business Line Data and Key Metrics Changes - The core Strand business segment generated $21.8 million in revenue during Q2 2025, reflecting continued expansion among customers [5][11] - The Loyalty Solutions segment contributed $10.8 million in revenue for Q2 2025, demonstrating successful integration efforts [5][12] - Gross profit margin for the Strand segment was 34.9%, while the SLS segment operated at 21% [5] Market Data and Key Metrics Changes - The company maintained approximately $18.1 million in cash, cash equivalents, and investments as of June 30, 2025, providing strong liquidity for strategic initiatives [9][14] - The company was recognized as the twelfth leading promotional product distributor in North America, up from the previous year [6] Company Strategy and Development Direction - The company aims to continue its top-line growth through organic growth and strategic acquisitions while managing costs effectively [20][24] - The addition of new board members with relevant expertise reflects the company's commitment to operational excellence and long-term competitiveness [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to accelerate growth and deepen client partnerships, particularly in the second half of the year, which is historically strong due to holiday sales [20][21] - The company is focused on disciplined capital deployment and long-term value creation for shareholders [16][17] Other Important Information - The company repurchased over 110,000 shares during Q2 2025, demonstrating a commitment to maximizing shareholder value [10] - The company is now fully compliant with all NASDAQ continuing listing requirements following its annual general meeting [9] Q&A Session Summary Question: Outlook for the second half and expectations for organic growth - Management is excited about changes made to focus on existing customers and expanding offerings, with 30% organic growth in Q2 and over 20% for the first half of the year [19][20] Question: Plans for stock buybacks - The company has authorized a $10 million share buyback program and executed less than $4 million in Q2, with plans to continue buying back stock at reasonable prices [22][24]

Core Viewpoint - HighCo experienced a business decline in Q2 2025, consistent with forecasts, but anticipates a return to growth starting in Q3 2025, particularly driven by the Activation division in France [1][5][14]. Financial Performance - Q2 2025 gross profit was €15.19 million, down 10% year-on-year on a like-for-like basis, while H1 2025 gross profit totaled €30.96 million, reflecting an 8.2% decline [2][9]. - The Activation division, which constitutes 67.5% of the Group's gross profit, showed growth of 3.1% in H1 2025, while the Mobile division declined by 7.8% and the Consulting & In-store media selling division fell sharply by 32.1% [9][14]. - The adjusted operating margin for H1 2025 is approximately 12%, down from 22.5% in H1 2024 [8][15]. Business Segments - In France, Q2 2025 gross profit decreased by 9.4% to €13.31 million, with a significant drop in Consulting & In-store media selling due to the sale of Casino hypermarkets [10][11]. - International businesses saw a 14.1% decline in Q2 2025, with Belgium experiencing a 15% drop in gross profit [12][13]. Strategic Developments - HighCo is in the process of acquiring the promotional activities of Sogec and BudgetBox, with completion expected by the end of September 2025, which is anticipated to enhance the Activation division's growth [17][18]. - The company has implemented performance share plans to align employee interests with the Group's performance, aiming to motivate staff towards future growth [19][20]. Guidance and Future Outlook - The guidance for 2025 has been raised, reflecting expected growth in the Activation division and potential improvements in the Consulting & In-store media selling division for H2 2025 [20]. - An exceptional dividend of €1.00 per share is planned following the sale of High Connexion, with payment scheduled for September 5, 2025 [21].

Core Viewpoint - HighCo has entered exclusive negotiations to acquire the promotional marketing activities of SMP SAS, including the Sogec brand and BudgetBox, which will enhance its position in the promotional activation sector in Europe [1][4][5]. Group 1: Acquisition Details - The acquisition involves the promotion execution and management businesses under the Sogec brand and the retail media subsidiary BudgetBox [1][2]. - The businesses involved in the acquisition currently employ over 150 people and generated approximately €27 million in revenue for 2024, with an estimated gross profit of about €17 million [3]. - An exclusive option for the acquisition has been established until September 30, 2025 [3]. Group 2: Strategic Implications - This acquisition is expected to strengthen HighCo's Activation division and support its strategy to refocus on core promotional marketing businesses [4][5]. - The consolidation of Sogec Promo and BudgetBox into HighCo's financial statements is anticipated in the second half of 2025 [4]. - The deal aligns with HighCo's strategy to accelerate development and concentrate investments in its key business divisions: Activation and Consulting & In-store media selling [5][6]. Group 3: Company Background - HighCo is a marketing and communication expert that supports brands and retailers in retail transformation, employing nearly 450 people [6]. - The company is listed on Euronext Paris and has achieved a Gold rating from EcoVadis, ranking in the top 5% of companies for CSR performance [6].