Financial Data and Key Metrics Changes - Total revenue increased by 67% year-over-year to $116.8 million in Q3 2025 [17] - GAAP net income grew by 72.7% year-over-year to $26.7 million, with an adjusted net income increase of 52.6% to $25.4 million [22] - Adjusted EBITDA rose nearly 74.6% year-over-year to $39.6 million, representing a 33.9% adjusted EBITDA margin [23] - GMV (Gross Merchandise Volume) increased by 58.7% year-over-year, marking the first $1 billion quarter for the company [17] Business Line Data and Key Metrics Changes - The number of monthly on-demand users reached 264,000 by the end of Q2 2025, but the subscriber count decreased from 529,000 to 484,000 during the same period [9] - By the end of Q3 2025, subscribers rose to 568,000 as the company pivoted back to focus on subscription products [11] Market Data and Key Metrics Changes - The take rate, defined as total revenue as a percentage of GMV, rose by 60 basis points year-over-year to 11.2% [18] - The provision for credit losses as a percentage of GMV increased by 70 basis points year-over-year to 3.1% [19] Company Strategy and Development Direction - The company is focusing on enhancing its subscription model while using on-demand as a supplementary tool for specific consumer segments [11][10] - There is a strong emphasis on responsible lending practices, positioning the BNPL product as a budgeting tool rather than a means to overspend [4][33] - The company is exploring new product features, including AI-driven tools to enhance customer service and engagement [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the BNPL industry, citing its early-stage development and consumer preference over traditional credit cards [3][31] - The company reaffirmed its guidance for top-line growth and adjusted net income, with modest adjustments to GAAP net income due to a discrete tax benefit [24] Other Important Information - The company incurred $1.3 million in costs related to corporate strategic projects, including an antitrust suit and capital markets exploration [12][13] - Total cash grew by $14.7 million in the quarter to $134.7 million, demonstrating the strength of the balance sheet [23] Q&A Session Summary Question: Impact of de-emphasizing on-demand on growth - Management noted that the decision to de-emphasize on-demand was made mid-quarter based on conversion data, indicating that on-demand is better suited for enterprise merchants rather than direct-to-consumer [25][26] Question: Take rate trends and credit losses - The take rate is targeted at maintaining a 60% gross margin, and the 3.1% credit loss rate aligns with expectations, with guidance indicating a range of 2.5%-2.75% for the year [27][29] Question: Market strategy for BNPL in the U.S. - Management believes the BNPL market has significant growth potential, viewing it as a safer alternative to credit cards and emphasizing responsible spending [31][33] Question: Drivers of 2026 EPS guidance - The company anticipates continued growth in subscriptions and is focused on maintaining cost discipline while monitoring economic conditions [37][39] Question: Changes in marketing strategy for subscriptions - The marketing approach has shifted to prioritize subscription offerings directly to consumers, contrasting with previous strategies that emphasized on-demand products [40][42]