Financial Data and Key Metrics Changes - The company ended Q3 with approximately $4.9 billion in backlog, having added about $1.1 billion in contracts since June 30, including two significant contracts in Australia worth approximately $700 million [9][24]. - Revenue for Q3 was approximately $603 million, which was about $100 million or 15% below expectations due to delays in ramping up production at the U.S. manufacturing facility [10][26]. - The adjusted gross profit margin for Q3 was 15.4%, exceeding the target for the quarter, and annual recurring revenue increased to $124 million [10][28]. - The company closed the quarter with over $900 million in liquidity, including approximately $460 million in cash, providing financial strength and flexibility [10][30]. Business Line Data and Key Metrics Changes - The company signed two contracts in Australia, marking the largest contract in its history, contributing significantly to the backlog [7]. - The U.S. manufacturing facility faced ramp-up issues, impacting revenue generation, but recovery milestones have been met, and production rates are expected to improve by the end of the fiscal year [26][27]. Market Data and Key Metrics Changes - The U.S. market is showing signs of recovery as tariff-related uncertainties ease, with all previously halted contracts now reactivated [16][24]. - The energy storage market is becoming increasingly competitive, with battery storage now recognized as a superior solution for meeting capacity needs compared to gas turbines [19][20]. Company Strategy and Development Direction - The company is focusing on domestically produced energy storage systems, supported by recent legislation that enhances its competitive position [11][13]. - The company is actively engaging with suppliers to ensure compliance with new regulations and is exploring multiple options to meet domestic content requirements without significant capital raises [15][49]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of energy storage, particularly in light of supportive federal legislation and easing tariff uncertainties [34][35]. - The company anticipates that the demand for battery storage solutions will grow significantly, especially driven by the needs of AI and data centers [21][22]. Other Important Information - The company expects to recover revenue lost due to production delays in fiscal 2026 as manufacturing rates improve [10][32]. - The company has reaffirmed its annual recurring revenue target of $145 million and adjusted EBITDA guidance of $0 to $20 million for fiscal 2025 [32]. Q&A Session Summary Question: Guidance for Q4 and margin outlook - Management indicated that Q4 margins are expected to be affected by U.S. revenue and tariff impacts, with efforts to mitigate these costs ongoing [39][40]. Question: Impact of recent policy actions on business - Management reassured that the U.S. battery storage market is expected to remain a domestic content market, and they are working on compliance with new regulations [43][46]. Question: U.S. demand trends post-legislation - Management noted that demand is picking up, with previously halted contracts now moving forward, and they are seeing more opportunities arise [65][66]. Question: Ramp-up issues at the Arizona facility - Typical ramp-up issues have been encountered, but management believes they are under control and expects to meet production targets by year-end [67][68]. Question: Pricing dynamics and ASPs - Management acknowledged that while there may be some pricing pressure due to tariffs, new contracts will reflect the updated cost structure, and margins are expected to return to normal levels [85][87].