Financial Data and Key Metrics Changes - For Q4 2025, revenue totaled $30.5 million, a decrease of 14.4% compared to Q4 2024 [7] - Gross profit was $8.1 million, down 6.8% year-over-year, while gross margin increased to 26.7% from 24.6% due to better performance of higher-margin businesses [7][8] - Operating expenses decreased to $8.8 million from $10 million in the prior year, leading to an improvement in GAAP operating loss to $0.7 million from $1.3 million [7][8] - GAAP net loss attributable to shareholders was $2.6 million, compared to a net loss of $0.4 million in the same period last year [8] Business Line Data and Key Metrics Changes - The sanitaryware and shower systems businesses faced volume impacts due to tariff headwinds, despite positive underlying demand trends [4] - The company is focusing on high-grading its portfolio, which contributed to the expansion of gross margin [5] Market Data and Key Metrics Changes - The company experienced temporary revenue pressure in the U.S., Canada, and Europe, but geographic expansion into India and growth in Covered Bridge kitchen cabinetry are expected to drive future growth [5] Company Strategy and Development Direction - The company is implementing a BPC strategy focusing on organic growth initiatives across brands, products, and channels [4] - There is a commitment to diversifying sourcing through a "China Plus One" strategy, with partnerships secured outside of China, including Thailand [22][23] - New initiatives in India and a wholesale FAF initiative in Germany are expected to contribute to growth [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the foundational aspects of the business despite uncertainties from global trade issues and geopolitical tensions [11][12] - The company anticipates continued evaluation of tariff impacts and expects adjustments in the tariff landscape throughout the year [15][16] Other Important Information - Total liquidity at the end of Q4 was $8.5 million [9] - Guidance for 2026 includes revenue expectations of $134 million to $141 million and adjusted operating income guidance of $0.7 million to $2.5 million [9] Q&A Session Summary Question: What assumptions in the end markets are being considered for the full-year guide? - Management noted momentum going into 2025 was disrupted by global trade issues, but they feel comfortable with broader category momentum [11] Question: How has demand looked year to date versus Q4? - Management indicated that Q1 expectations are positive, but there is still uncertainty regarding tariff adjustments [15] Question: What progress has been made on the China Plus One strategy? - Management reported good progress in securing partnerships outside of China, which will help mitigate uncertainties [22][23] Question: What growth opportunities are anticipated in India and other markets? - Management highlighted growth in India through new dealers and a successful wholesale initiative in Germany [25][26]

Financial Data and Key Metrics Changes - For the fourth quarter of 2025, revenue totaled $30.5 million, a decrease of 14.4% compared to the fourth quarter of 2024 [8] - Gross profit was $8.1 million, a decrease of 6.8% year-over-year, while gross margin increased to 26.7% from 24.6% in the prior year, driven by better performance of higher-margin businesses [9][10] - Operating expenses decreased to $8.8 million from $10 million in the prior year, resulting in a GAAP operating loss of $0.7 million, an improvement from a loss of $1.3 million in the same period last year [9][10] - GAAP net loss attributable to shareholders was $2.6 million, compared to a net loss of $0.4 million in the same period last year [10] - Total liquidity at the end of the fourth quarter was $8.5 million [11] Business Line Data and Key Metrics Changes - The sanitaryware and shower systems businesses experienced volume impacts due to tariff headwinds, despite positive underlying demand trends [5] - The company is focusing on high-grading its portfolio, which contributed to the expansion of gross margin [6] Market Data and Key Metrics Changes - The company faced temporary revenue pressure in the U.S., Canada, and Europe, but geographic expansion into India and growth in Covered Bridge kitchen cabinetry are expected to drive future growth [6][7] Company Strategy and Development Direction - The company is implementing a BPC strategy focusing on organic growth initiatives across brands, products, and channels [4] - There is a strategic focus on diversifying geographic sourcing, with progress made in partnerships outside of China, including Thailand [25] - New program launches in India and a wholesale FAF initiative in Germany are highlighted as growth opportunities [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the foundational aspects of the business despite uncertainties related to global trade and geopolitical issues [14][18] - The company anticipates continued evaluation of tariff adjustments and their potential impacts on operations [17] - Management is optimistic about the momentum in key categories and expects a positive outlook for Q1 of 2026 [17] Other Important Information - The company provided guidance for 2026, with revenue expected to be between $134 million and $141 million, and adjusted operating income guidance ranging from a loss of $0.3 million to a positive $1.1 million [11] Q&A Session Summary Question: What assumptions in the end markets are being considered for the full-year guide? - Management acknowledged momentum going into 2025 but noted disruptions due to global trade issues, expressing comfort with broader category momentum [13][14] Question: How has demand looked year to date versus the fourth quarter? - Management indicated satisfaction with early Q1 demand, despite uncertainties, and noted that tariff adjustments are still too early to assess [16][17] Question: Can you elaborate on the pickup in activity in Q1 of 2026? - Management explained that order patterns were disrupted due to tariff impacts, but they are seeing positive momentum in key categories [22][23] Question: What progress has been made on the China Plus One strategy? - Management reported good progress in securing partnerships outside of China, which will help mitigate uncertainties [25] Question: What growth opportunities are anticipated in India and other markets? - Management highlighted growth in India through new dealers and a successful wholesale initiative in Germany, along with logistics evaluations in the U.S. [27][28]