Financial Data and Key Metrics Changes - The company reported revenue of $83.3 million for Q3 2025, down from $100.7 million in the prior year, reflecting a decrease of $17.4 million due to various factors including contract transitions to small business contractors [16][17] - EBITDA for Q3 2025 was $8.1 million compared to $10 million in the same period last year, primarily due to lower overall revenue [17] - Operating cash flow generated was approximately $9.5 million during the quarter, with a reduction in days sales outstanding to 46 days from 52 days at the end of Q2 [18] Business Line Data and Key Metrics Changes - The decrease in revenue was attributed to the conversion of certain VA and DoD programs to small business contractors, accounting for decreases of $8.5 million and $3.2 million respectively [16] - Government efficiency initiatives narrowed the scope of some work, resulting in a $2.2 million decrease [17] Market Data and Key Metrics Changes - The company noted that the new administration has added layers of funding review and approval cycles, which have slowed revenue streams from existing contracts and impacted new business growth [6][10] - The anticipated changes in federal spending priorities are expected to create new business opportunities in technology, integration, cybersecurity, artificial intelligence, and machine learning [10][12] Company Strategy and Development Direction - The company is focused on operational agility, financial flexibility, and technology differentiation to navigate industry challenges and strengthen its long-term position [12] - The strategic goals include continuing to deleverage the company, protecting the revenue base, and preserving margin delivery through proactive scaling initiatives [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing anticipated changes in government procurement processes and increased funding for technology initiatives [10][13] - The company believes that its capabilities align well with federal technology initiatives and expects new business opportunities and contract wins in the medium to long term [12][14] Other Important Information - The company reduced debt by $9.4 million during the quarter, ending with $142.3 million in debt outstanding, and is a year ahead of mandatory debt payments [8][19] - The company remains well ahead of its debt covenants, supporting a positive outlook for the future [19] Q&A Session Summary Question: Inquiry about the small business set-aside business - Management noted that the transition to small business set-aside contracts has been slower than anticipated but expects heavy activity in the remainder of the quarter [31] Question: Update on government procurement processes - Management highlighted that cuts in government contract acquisition personnel have created gaps in resources, but there are signs of stabilization that could positively impact the pipeline [33] Question: General outlook for the company - Management expressed strong confidence in the company's positioning for a recovery in 2026, with good engagement with decision-makers and influencers [37]