Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $206 million, up 7% sequentially and up 24% year-over-year, which is twice the performance of comparable peers [12][4] - GAAP gross margin was 57.8%, while non-GAAP gross margin was 58%, up 170 basis points from the prior quarter and 350 basis points year-over-year [13] - GAAP operating loss was $12 million, while non-GAAP operating income was approximately $11 million [14] - Cash, cash equivalents, and short-term investments at the end of the quarter totaled $439 million [14] Business Line Data and Key Metrics Changes - Industrial and commercial business revenue was $118 million, representing 57% of consolidated revenue, up 7% sequentially and 22% year-over-year [12] - Home and life business revenue was $88 million, or 43% of consolidated revenue, up 6% sequentially and 26% year-over-year [13] - Distribution accounted for approximately 74% of revenue mix, with channel inventory at 61 days [13] Market Data and Key Metrics Changes - Demand for commercial applications such as building safety and lighting saw strong quarter-over-quarter sales growth [4] - Smart meter demand is increasing as utilities deploy near real-time tracking of critical infrastructure [5] - Medical customers in the home and life segment grew nearly 60% year-over-year [5] Company Strategy and Development Direction - The company expects full-year revenue growth of 34% compared to 2024, with continued growth anticipated into 2026 and beyond [4] - A partnership with GlobalFoundries was announced to manufacture Series 2 wireless SoCs, enhancing supply chain resilience [10] - The introduction of new design tools, including Studio 6 and Simplicity AI SDK, aims to streamline development and enhance customer engagement [8][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and ongoing innovation, particularly in the IoT space [10] - The company anticipates continued momentum from share gains, revenue growth, and gross margin expansion [11] - Management noted that customer inventory levels are at their lowest since tracking began, indicating a return to normal market conditions [14] Other Important Information - The company plans to limit operating expense growth while focusing on earnings per share accretion [16] - Non-GAAP earnings per share for Q4 is expected to be in the range of $0.40-$0.70 [17] Q&A Session Summary Question: Clarification on Q4 gross margin guidance - Management confirmed a one-time benefit contributing to gross margin, with expectations of a stabilized gross margin around 61% moving forward [20][22] Question: Financial impact of new design tools - The new SDK is expected to streamline development, allowing for faster time to market and scalability, which should enhance customer acquisition over time [24][25] Question: Expectations for channel and customer inventories - Management indicated that customer inventory effects are effectively gone, and they aim to increase distribution inventory levels gradually [29][30] Question: Outlook for 2026 - While not providing specific guidance, management expressed confidence in outperforming the market and capturing market share, driven by strong product lines [31][32] Question: Inorganic growth opportunities - Management remains open to M&A but emphasizes a tight filter for potential acquisitions, with a preference for returning excess cash flow to shareholders through buybacks [61]

Group 1 - The parent company of OYO, Oravel Stays, has rebranded to Prism to reflect its expanded global portfolio and long-term vision [7] - The new identity, Prism, symbolizes clarity, diversity, and the full spectrum of brands within the company's ecosystem, which includes OYO, Townhouse, Sunday, and Palette [7] - The rebranding follows OYO's acquisition of G6 Hospitality for $525 million, which included the Motel 6 and Studio 6 brands, with plans for accelerated growth in the U.S. [7][4] Group 2 - Prism aims to establish a future-ready corporate architecture that aligns its expanding portfolio with its long-term vision [3] - The company plans to enter new categories and geographies, particularly focusing on the extended stay Studio 6 brand for growth [4][5] - Since its founding in 2012, OYO has expanded to over 35 countries worldwide [5]