Financial Data and Key Metrics Changes - The company reported record FRE of $323 million, an 18% increase year over year, with a FRE margin of 48% for the first half [7][22] - Total AUM reached a record $465 billion, with first half inflows totaling $28 billion and $51 billion over the last twelve months, reflecting a 12% organic growth rate [23][24] - Management fees for the quarter were $590 million, a 7% increase year to date, while capital market fees were $48 million in the second quarter, more than double from last year [22][23] Business Line Data and Key Metrics Changes - Carlyle Alpinvest experienced a record quarter with fee revenues up more than 50% and FRE nearly doubling over the past year [17] - Global Credit delivered strong performance with FRE of $111 million, a 37% year over year increase, and asset-backed finance AUM up 40% year over year [25][26] - The U.S. Buyout funds appreciated approximately 20% over the past twelve months, while the tenth vintage U.S. Real Estate fund closed at $9 billion, nearly 15% larger than its predecessor [13][27] Market Data and Key Metrics Changes - The macro environment showed improved sentiment, with equity markets near record highs and increased M&A activity due to reduced uncertainty from tariff negotiations and tax policy [9][10] - The company deployed $26 billion in 2025, up almost 50% year over year, indicating strong demand for private capital [10][11] Company Strategy and Development Direction - The company is focused on expanding its wealth management capabilities, with a partnership with UBS to provide private equity secondary solutions for their international wealth clients [20][110] - The strategic emphasis is on leveraging brand recognition and diversification of the platform to enhance growth in wealth management and private equity [111][112] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, expecting full year FRE growth of approximately 10%, up from a prior outlook of 6% [30] - The leadership transition is seen as a natural evolution to enhance operational scale and agility in executing the company's strategy [21][88] Other Important Information - The company returned nearly $15 billion to investors over the last twelve months, which is three times the industry average [11][29] - The firm is actively pursuing opportunities in the capital markets, generating over $230 million in fees over the last twelve months, with expectations for further growth as M&A and IPO activities increase [20][21] Q&A Session Summary Question: Drivers of FRE growth and future guidance - Management indicated that the revised outlook reflects strong momentum across the platform, with organic growth at Alpinvest being exceptional [41][42] Question: Retail commentary and fundraising potential - Management highlighted the systematic strategy for engaging wealth clients and the expected positive impact of the upcoming CPAP launch [52][56] Question: Outlook for the credit business - The company sees significant growth potential in the credit business, particularly in private credit and asset-based finance, driven by increasing demand for capital [66][67] Question: Near-term outlook for Alpenvest and Solutions business - Management noted that the business has evolved to generate consistent growth, with CAPM being a significant driver [73][76] Question: Capital markets fees growth and strategy - The company expects capital markets fees to continue growing, driven by organic opportunities and the scale of the platform [101][106] Question: Wealth products and future vision - Management emphasized the importance of brand recognition and diversification in driving success in wealth management [110][112]

Financial Data and Key Metrics Changes - The company reported record FRE of $323 million, an 18% increase year over year, with a FRE margin of 48% for the first half [6][19] - Total DE for the first six months was $2.5 per share, marking a record start for the firm [19] - Management fees reached $590 million for the quarter, a 7% increase year over year, while capital market fees were $48 million, more than double last year [20][19] - Firm-wide AUM ended the quarter at $465 billion, with inflows totaling $28 billion for the first half and $51 billion over the last twelve months, reflecting a 12% organic growth rate [20][6] Business Line Data and Key Metrics Changes - Global Credit and Carlyle Alpinvest delivered record FRE, together accounting for 55% of firm-wide FRE, up from less than 30% two years ago [21] - Carlyle Alpinvest FRE reached a record $68 million for the second quarter, with year-to-date FRE of $134 million, up more than 80% [21] - Global Credit FRE was $111 million for the quarter, a 37% year-over-year increase, with strong capital markets activity driving performance [22][23] - The U.S. Buyout funds appreciated approximately 20% over the past twelve months, with the tenth vintage U.S. Real Estate fund closing at $9 billion, nearly 15% larger than its predecessor [11][24] Market Data and Key Metrics Changes - The macro environment showed improved sentiment, with markets functioning well and activity accelerating, particularly in M&A and deal activity [7][8] - The company deployed $26 billion in 2025, up almost 50% year over year, indicating strong demand for private capital [8] - Asset-backed finance AUM increased by 40% year over year, reflecting significant growth in this area [14] Company Strategy and Development Direction - The company is focused on leveraging its global brand and diversified investment platform to drive growth, particularly in wealth management and capital markets [16][17] - A partnership with UBS was launched to provide private equity secondary solutions for their international wealth clients, expected to be a strong growth driver [17] - The company aims to enhance its capabilities in credit and private equity, with a focus on organic growth and strategic partnerships [58][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's momentum and performance, expecting full-year FRE growth of approximately 10%, up from a prior outlook of 6% [26] - The company anticipates full-year inflows of $50 billion, compared to a previous estimate of $40 billion, indicating strong fundraising momentum [26] - Management highlighted the importance of collaboration across the Carlyle platform to drive better outcomes and performance [78] Other Important Information - The company returned nearly $15 billion to investors over the last twelve months, significantly exceeding the industry average [10][25] - Leadership appointments were announced, including John Ruddett as Co-President and Justin Bluff as the new CFO, aimed at enhancing operational scale and agility [18][26] Q&A Session All Questions and Answers Question: Drivers of FRE growth and outlook for 2026 - Management noted that the revised outlook reflects strong momentum across the platform, with organic growth at Alpinvest being exceptional [39][40] - They acknowledged the desire for longer-term guidance but emphasized the unpredictability of forecasting five years ahead [36][41] Question: Retail commentary and fundraising potential - Management discussed the systematic strategy for engaging wealth globally, highlighting the importance of brand recognition and partnerships [48][49] Question: Credit business growth outlook - Management emphasized the convergence of insurance and private credit as a significant growth opportunity, with a focus on collaborative partnerships [58][60] Question: Near-term outlook for Alpenvest and Solutions business - Management expressed confidence in consistent growth for Alpenvest, driven by new fund launches and partnerships [71][73] Question: Transition back to global private equity and collaboration - Management highlighted the strong collaborative culture within Carlyle and the exceptional performance of the corporate private equity business [78][81] Question: Net IRR of CP7 and realization performance - Management indicated that CP7 is not expected to be the best fund, but performance improvements are being made, with a focus on driving realizations [91][92] Question: Capital markets fees growth and strategy - Management discussed the strategic development of capital markets fees, emphasizing high-quality revenue streams and organic growth opportunities [98][102] Question: Wealth products and future product development - Management outlined the importance of client-centric solutions in the wealth space, with a focus on developing products that meet long-term needs [127][128]

Investment Ratings - ResMed (RMD AU) is rated Overweight (OW) with a price target of A$45.00 [24][30] - Sonic Healthcare (SHL AU) is rated Neutral (N) with a price target of A$29.00 [30][32] Core Insights - ResMed is expected to benefit from rising awareness of obstructive sleep apnoea, leading to increased demand for CPAP treatments [2][12] - Sonic Healthcare faces funding pressures that are likely to undermine its margin expansion potential [6][15] Summary by Sections ResMed - **Earnings Growth**: ResMed's earnings are projected to be approximately 5% ahead of consensus due to expected gross margin improvements and stronger revenue growth [4][12] - **Margin Expansion**: The company is on track to achieve further gross margin increases supported by production efficiency and favorable currency movements [3][24] - **Valuation**: ResMed trades at a 23x FY26E PE, which is below its historical average, indicating potential undervaluation [5][24] Sonic Healthcare - **Funding Pressures**: Sonic Healthcare is experiencing reimbursement pressures in key markets, particularly Germany and Australia, which are expected to negatively impact revenues [6][10] - **US Operations**: The US business has underperformed, and challenges are anticipated to persist in 2025 [7][9] - **Long-term Margin Decline**: Sonic's pathology margins have been in long-term decline, attributed to expansion into lower-margin markets and a tight funding environment [10][15]

Financial Data and Key Metrics Changes - First quarter revenue was $777.9 million, a decline of 1.8% from the prior year quarter, but exceeded the midpoint of guidance by $13.1 million [19][4] - Adjusted EBITDA for the first quarter was $127.9 million, down 19.3% year-over-year, with an adjusted EBITDA margin of 16.4% [5][22] - Free cash flow was negative $100,000, an improvement from negative $38.9 million in the prior year quarter [5][23] Business Line Data and Key Metrics Changes - **Sleep Health Segment**: Revenue decreased by 2.8% to $316.4 million, with new setups at approximately 113,000, slightly below expectations [20] - **Respiratory Health Segment**: Revenue increased by 3.3% to $165.5 million, driven by stronger oxygen new setups [21] - **Diabetes Health Segment**: Revenue declined by 8% to $138.8 million, but showed signs of recovery with improved new starts and the lowest attrition rate in two years [21][12] - **Wellness at Home Segment**: Revenue increased by 0.7% to $157.2 million, offsetting revenue lost from disposed assets [22] Market Data and Key Metrics Changes - The addressable markets within the four segments are growing in aggregate by mid-single digits, driven by an aging U.S. population and increasing prevalence of chronic conditions [8][6] - The company serves 4.2 million patients across over 660 locations in all 50 states, indicating a strong geographic footprint [8] Company Strategy and Development Direction - The company aims to deliver consistent, sustainable organic growth by focusing on its four core segments and enhancing patient service excellence [6][10] - There is a commitment to improving operational workflows and patient experience, particularly in the Diabetes Health segment [10][12] - The company is reducing debt and exiting non-core product lines to sharpen strategic focus [14][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage potential tariff impacts, indicating that current exposure is contained and manageable [15][16] - The company remains optimistic about the growth potential in the Diabetes Health segment and overall business despite current challenges [12][30] Other Important Information - The company has reduced its debt balance by $25 million in the first quarter, totaling $195 million over the last five quarters [13][24] - Full-year revenue expectations have been reduced by $40 million due to the sale of certain incontinence assets [25] Q&A Session Summary Question: Can you provide additional color on the improvement in the diabetes business? - Management noted positive movement in the pump business and sequential growth in new starts for continuous glucose monitors (CGMs) [28][29] Question: What is the situation with new starts in the sleep segment? - Management acknowledged a slight decline in new starts but emphasized confidence in addressing the issue through detailed plans [32][33] Question: Can you clarify the guidance changes related to asset sales? - The guidance change is exclusively for the incontinence asset sale, with no comments on the infusion asset sale until it is closed [29] Question: Are there opportunities for acquisitions in troubled markets? - Management confirmed ongoing M&A discussions and the potential for modest tuck-in acquisitions [60][59] Question: What is the company's exposure to tariffs for fiscal 2026? - Management indicated that they are feeling better about tariff exposure based on recent clarifications regarding product classifications [46][47] Question: How is the company positioned in the sleep market? - Management stated that improvements are needed in certain states to regain market share, with plans in place to address these challenges [54][55]

Financial Data and Key Metrics Changes - First quarter revenue was $777.9 million, a decline of 1.8% from the prior year quarter, but exceeded the midpoint of guidance by $13.1 million [18][4] - Adjusted EBITDA for the first quarter was $127.9 million, down 19.3% year-over-year, with an adjusted EBITDA margin of 16.4% [21][5] - Free cash flow was negative $100,000, an improvement from negative $38.9 million in the prior year quarter [5][22] Business Line Data and Key Metrics Changes - **Sleep Health Segment**: Revenue decreased 2.8% to $316.4 million, with new setups at approximately 113,000, slightly below expectations [19][18] - **Respiratory Health Segment**: Revenue increased 3.3% to $165.5 million, driven by stronger oxygen new setups during a severe flu season [20][18] - **Diabetes Health Segment**: Revenue declined 8% to $138.8 million, but showed signs of recovery with improved new starts and the lowest attrition rate in two years [20][12] - **Wellness at Home Segment**: Revenue increased 0.7% to $157.2 million, offsetting revenue lost from disposed assets [21] Market Data and Key Metrics Changes - The addressable markets within the four segments are believed to be growing in aggregate by mid-single digits, driven by an aging U.S. population and increasing prevalence of chronic conditions [6][7] - The company serves 4.2 million patients across over 660 locations in all 50 states, indicating a broad geographic footprint [7] Company Strategy and Development Direction - The company aims to deliver consistent, sustainable organic growth by focusing on its four core segments and enhancing patient service excellence [6][10] - There is a commitment to improving operational workflows and patient experience, particularly in the Diabetes Health segment [10][12] - The company is reducing debt and exiting non-core product lines to sharpen strategic focus [14][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage potential impacts from international trade policies and tariffs, indicating that current exposure is contained [15][16] - The company remains optimistic about the future of its Diabetes Health segment, citing improvements in processes and patient service [12][30] Other Important Information - The company has reduced its debt balance by $25 million in the first quarter, totaling $195 million over the last five quarters [13][23] - Full-year revenue expectations have been reduced by $40 million due to the sale of certain incontinence assets [24] Q&A Session Summary Question: Can you provide additional color on the improvement in the diabetes business? - Management noted positive movement in the pump business and a second consecutive quarter of growth in new starts for continuous glucose monitors (CGMs) [28][30] Question: What is the situation with new starts in the sleep segment? - Management acknowledged a slight decline in new starts but emphasized that it is not due to external factors, and plans are in place to address performance in certain geographies [32][34] Question: Can you clarify the guidance changes related to asset sales? - The guidance change is exclusively for the incontinence asset sale, with no comments on the infusion asset sale until it is closed [29][30] Question: What are the expectations for the second quarter? - Management expects flat revenue year-over-year with adjusted EBITDA margins between 18.3% and 19.3%, impacted by previous revenue mix shifts [36][38] Question: Are there opportunities for acquisitions in troubled markets? - Management confirmed ongoing M&A discussions and the potential for modest tuck-in acquisitions to enhance market position [62][63]

Financial Data and Key Metrics Changes - Fourth quarter revenue was effectively flat year-over-year but exceeded the high end of guidance by 3% [6][30] - Adjusted EBITDA for the fourth quarter contracted 2% year-over-year but was above guidance [7][36] - Free cash flow for the fourth quarter was $73 million, up 10% from the prior year [7][39] Business Line Data and Key Metrics Changes - Sleep Health revenue increased 3.4% year-over-year in Q4 [6][31] - Respiratory Health revenue increased 1% year-over-year in Q4 [6][33] - Diabetes Health revenue decreased 7.3% year-over-year in Q4, but showed sequential growth of $30.2 million over Q3 [6][34] - Wellness at Home revenue declined 0.8% year-over-year in Q4 [6][35] Market Data and Key Metrics Changes - For full year 2024, net revenue grew 1.9% to $3.26 billion, with notable growth in Sleep Health (4.5%) and Respiratory Health (6.0%) [30] - The company reported a net leverage ratio of 2.79 times at year-end 2024, down from 3.16 times at the end of 2023 [42] Company Strategy and Development Direction - The company is focusing on five areas: One Adapt initiative, AI and automation, clinical relevance, organic growth, and strengthening the balance sheet [8][24] - A new segment structure was implemented to enhance visibility and accountability [12][28] - The company aims to lead in innovation within the home health industry and improve patient experience through automation and AI [13][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to manage patient care and expand its role in healthcare [17][22] - The company anticipates 2025 to be a transition year for growth, with expectations for accelerated growth in 2026 and beyond [51] Other Important Information - The company reduced debt by $170 million in the past year, including $50 million in Q4 [24][42] - A multi-year extension of the capitated contract with Humana was announced [23] Q&A Session Summary Question: Can you talk more about the conversations with carriers over additional capitated arrangements? - Management confirmed ongoing discussions and a strong relationship with Humana, with positive performance reviews [55][56] Question: Can you discuss your working capital outlook and cash flow improvement? - Management indicated progress in working capital and expects stable or improved days sales outstanding (DSO) in 2025 [57][58] Question: What are your thoughts on the Diabetes business contribution to 2025 guidance? - Management noted stable revenue for pump supplies and cautious optimism for growth in the Diabetes segment [66][68] Question: Can you elaborate on the changes made in the Diabetes resupply outreach program? - Management highlighted the implementation of a new leadership team and improved patient outreach strategies [87][92] Question: How was the sales quota initiative received by the sales force? - Management reported a positive response from the sales team, which has improved forecasting and accountability [95][96] Question: Can you provide insights on the purchase versus rental revenue dynamics? - Management explained the impact of changes in reimbursement structures, particularly in the sleep business [102][103] Question: What is the expected impact of the 75/25 reimbursement model for 2025? - Management indicated a stable reimbursement environment with no significant changes expected [106][118]