Financial Data and Key Metrics Changes - Net sales for Q4 grew almost 9% year over year, while adjusted EBITDA grew 13% and non-GAAP net income grew 17% over last year [9] - Q4 non-GAAP earnings per share of $1.02 grew 27.5% year over year [10] - Full year net sales totaled just over $3 billion, a year-over-year decline of 6.7%, while gross profits grew by 2.4% to $408.6 million [12] - Non-GAAP net income of $85.1 million increased by 9.6% over last year, with full year free cash flow of $104 million representing 122% conversion of non-GAAP net income [13] Business Segment Data and Key Metrics Changes - Specialty Technology Solutions segment net sales increased 9% year over year and 16% quarter over quarter, driven by hardware growth in North America [10] - Intellisys and Advisory segment net sales and gross profits increased 1% year over year, but adjusted EBITDA declined 4% due to increased investments in SG&A [11] - Annual end user billing for Intelisys increased 4.5% year over year, totaling approximately $2.8 billion [12] Market Data and Key Metrics Changes - Brazil's business model is transitioning to focus more on cloud and recurring products, with growth in local currency despite economic challenges [51][54] - The company is experiencing competitive pressures in the Intelisys segment due to private equity-backed competitors [39] Company Strategy and Development Direction - The company is focusing on building capabilities in converged solutions, integrating hardware, software, and services [7] - A new business development team, LaunchPoint, has been created to assist emerging technology companies [6] - The company aims to increase the percentage of gross profits from recurring revenues to 50% over the next three years [44][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth opportunities despite navigating a dynamic macro environment [15][16] - The company anticipates low single-digit growth in the first half of fiscal year 2026, with expectations for acceleration in the second half [15][16] Other Important Information - The company ended Q4 with $126 million in cash and a net debt leverage ratio of approximately zero [13] - Share repurchases totaled $25 million for the quarter, with ongoing acquisition targets to expand capabilities [14] Q&A Session Summary Question: Discussion on midterm targets and free cash flow - Management emphasized the importance of free cash flow conversion as a metric for long-term outlook and capital allocation priorities [21][22] Question: Strategic investments in the Intelisys segment - Management discussed a new partner segmentation strategy and investments to support growth in the Intelisys business [27][29] Question: Expectations for the Intelisys business in 2026 - Management indicated a focus on adding new suppliers and sales resources to drive growth in the Intelisys segment [41] Question: Guidance for next year and factors affecting EBITDA - Management highlighted the importance of investments and mix in determining the range for adjusted EBITDA growth [42][43] Question: Recurring revenue as a driver of gross profits - Management noted that acquisitions and emerging technologies will contribute to increasing recurring revenue [44][46] Question: Growth in technology segment and market outlook for Brazil - Management acknowledged strong growth in the technology segment but noted challenges in Brazil due to economic conditions [49][51]