Group 1 - Merion Road Capital Management's Small Cap Fund returned 5.0% in Q3 2025, underperforming the Russell 2000 Index which returned 12.4% [1] - The long-only portfolio of Merion Road achieved a return of 10.1%, outperforming the S&P 500's return of 8.1% [1] - The strong performance of Kratos significantly contributed to the portfolio's results [1] Group 2 - American Woodmark Corporation (NASDAQ:AMWD) experienced a one-month return of -25.78% and a 52-week loss of 50.80% [2] - As of November 20, 2025, AMWD's stock closed at $47.84 per share, with a market capitalization of $696.98 million [2] - Merion Road Capital Management purchased shares in AMWD following its merger announcement with Masterbrand (MBC), highlighting identified synergies of $90 million relative to approximately $490 million in EBITDA, representing an 18% increase [3] - MBC management is one year into the acquisition of Supreme and reports that integration is on track, with AMWD's standardized product offering making manufacturing adjustments easier compared to Supreme's high-end products [3]

Financial Data and Key Metrics Changes - Net licensing revenues for Q3 2025 were $1.1 million, down from $1.5 million in Q3 2024, primarily due to cautious consumer spending and lower performance in the Halston license [12] - Year-to-date net licensing revenues were $3.8 million, compared to $6.5 million for the same period last year, largely due to the divestiture of the Lori Goldstein brand [12] - The company reported a net loss of approximately $7.9 million for Q3 2025, an improvement from a net loss of $9.2 million in Q3 2024 [17] - Adjusted EBITDA for Q3 2025 was approximately negative $650,000, representing a 38% year-over-year improvement from negative $1 million in Q3 2024 [18] Business Line Data and Key Metrics Changes - Direct operating costs for Q3 2025 were $2.2 million, down 23% from the prior year quarter, and year-to-date direct operating costs were $6.3 million, a decrease of 36% [12][13] - The company generated an adjusted EBITDA loss of $653,000 in Q3, which is a $400,000 improvement over Q3 2024 [10] Market Data and Key Metrics Changes - The company is experiencing a shift in its core business from linear TV to digital streaming and social commerce, with TikTok Shops surpassing eBay in quarterly volume [7] - The social media reach across the brand portfolio is now 46 million, with a target of reaching 100 million followers by 2026 [8] Company Strategy and Development Direction - The company is focusing on leveraging new business opportunities with UTG, including sourcing products for retail partners and potential acquisitions [6][7] - New influencer brands have diversified product categories into food, kitchen, home, and pet products, with a shift towards domestic production [8] - The company is cautious about Q4 2025 due to tariff impacts on QVC, HSN, and licensees [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for transformative transactions and the ability to capitalize on changes in the market [7] - The company is working to resolve issues related to the Halston brand and expects growth in 2026 [10][11] - Management highlighted the importance of top-line royalty revenue and the potential for significant asset value in the company's IP [46] Other Important Information - The company closed a $2 million net equity offering in Q3 2025, with part of the proceeds used to pay down loans [6] - As of September 30, 2025, the company had stockholders' equity of approximately $17 million and unrestricted cash of approximately $1.5 million [20] Q&A Session Summary Question: Importance of hiring Olin Lancaster as Chief Revenue Officer - Management emphasized the significance of the hire, noting Lancaster's extensive experience and the potential for growth with new influencer brands [22] Question: Mitigating tariff impacts with domestic products - Management discussed the strategic focus on domestic sourcing for food and pet products to reduce tariff risks [23][24] Question: Resolution of disruptions with SeaWonder and Christie - Management confirmed that the issues have been resolved, including vendor changes and programming challenges [28] Question: Updates on product roadmap and brand rollouts - Management indicated that new products will start hitting the market in Q1 2026, with a focus on food products and pet accessories [31] Question: Revenue ramp expectations for the next 12 months - Management outlined a roadmap for launching five new influencer-led brands to drive revenue growth into 2026 [39][40] Question: Potential revenue outlook for 2026 - Management refrained from providing specific guidance but referenced analyst reports for potential revenue expectations [45] Question: Long-term revenue targets - Management reiterated the potential for significant royalty income from new brands, emphasizing the global opportunities with influencers [49]