Core Viewpoint - Cycurion, Inc. is positioned for strong revenue growth in 2026 due to a significant backlog of $80 million, which is approximately four times its fiscal year 2024 revenue, indicating a robust pipeline for future billable work [2][4]. Group 1: Financial Position and Valuation - Cycurion's current annual revenue stands at $15.67 million, highlighting the substantial growth potential from its backlog [2]. - The company is trading at a market capitalization of $10.68 million, which is below its fair value according to InvestingPro data [1]. - Litchfield Hills Research has set a price target of $7.00 for Cycurion, suggesting a significant upside potential, as this valuation reflects a 2.9x estimated 2026 revenue compared to a peer average of 9.0x, indicating a steep discount [5]. Group 2: Business Strategy and Market Focus - Cycurion is shifting towards higher-margin cybersecurity solutions, focusing on advisory services, managed services, and SaaS solutions primarily for state and local governments and small businesses, which are increasingly targeted by ransomware attacks [3]. - The company has a proven acquisition and integration model, operating as a unified platform under new leadership aimed at simplifying structure, improving margins, and scaling higher-value managed security offerings [4]. Group 3: Leadership and Market Outlook - Kevin Kelly, Chairman and CEO of Cycurion, expressed confidence in the company's undervaluation and the potential for long-term investors to be rewarded as the backlog converts into growing billable revenues [7]. - The global demand for advanced cybersecurity solutions is swelling, further supporting Cycurion's growth prospects [7].

Core Insights - The Asia Pacific market for technology services experienced a significant decline in Q4 due to reduced demand for both cloud services and managed services [1] Industry Summary - The decline in the technology services market indicates a broader trend of decreasing demand in the Asia Pacific region, particularly affecting cloud and managed services sectors [1]

Company Overview - ePlus has a market capitalization of $2.33 billion and reported revenue of $2.29 billion for the trailing twelve months (TTM) [5] - The net income for the same period is $121.88 million, with a 1-year price change of 16.36% as of January 13, 2026 [5] Transaction Summary - John E. Callies, a director at ePlus, sold 560 shares in an open-market transaction on December 8, 2025, for a total value of $50,417 [2][3] - After the transaction, Callies holds 21,428 shares, valued at approximately $1.93 million based on the reported price of $90.03 [3] - This sale is part of a series of transactions, with the previous sale being 1,050 shares in August 2024, indicating a smaller transaction size due to capacity constraints [8][9] Recent Developments - ePlus has had a strong first quarter of FY 2026, with combined earnings per share (EPS) of 4.62 already surpassing the annual EPS of previous years [12] - The company appointed a new Board of Directors on January 6, 2026, to enhance its financial and business expertise [12] Market Performance - The stock price of ePlus increased by 17.30% in 2025, recovering from an 8% decline in 2024, suggesting a positive market sentiment [11]

Financial Data and Key Metrics Changes - The company is transitioning to a predictive revenue model, providing better visibility into future performance, including 2026 [1] - The implied guidance for Q4 revenue is expected to be slightly down year-over-year at the top end of guidance, reflecting a more conservative approach to revenue visibility [7][9] - Adjusted EBITDA guidance indicates a potential slight decline or narrow increase, with conservative gross margin assumptions [14][16] Business Line Data and Key Metrics Changes - The company has seen outsized growth in Direct-to-Consumer (DTC) and Audience Creation Platform (DAP) segments, contributing to smoother revenue streams [22][43] - Managed services revenue normalized in Q3, with only recognized contracts included in forecasts, reflecting a conservative approach [28][30] Market Data and Key Metrics Changes - The RFP (Request for Proposal) cycle has shown strong performance, with an increase in relevant RFPs and improved win rates due to better client engagement [39][40] - The mid-tier segment of clients is growing, as the company provides capabilities that allow them to compete effectively against larger manufacturers [34] Company Strategy and Development Direction - The partnership with Lamar Advertising aims to transform their business model, focusing on patient finding and precise message deployment across digital platforms [50][52] - The company is committed to a patient-focused strategy, with confidence in achieving both near-term goals and long-term growth objectives [73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting strong operational and financial momentum, and the ability to achieve growth plans [73] - The company is taking a conservative approach to guidance, focusing on signed contracts and existing visibility rather than speculative opportunities [9][30] Other Important Information - Gross margin expansion in Q3 was driven by product mix and improved negotiations with channel partners, with expectations of stabilizing in the upper 50s to low 60s range [55][56] - The company does not currently factor in contributions from new partnerships into their 2026 guidance, indicating a cautious approach to forecasting [54] Q&A Session Summary Question: Can you discuss the implied guidance for Q4 revenue? - Management indicated that the guidance reflects true visibility and is based on contracted revenue rather than speculative pipeline [9][12] Question: What changes have improved visibility in the business? - The company noted that a shift towards subscription-based models and a focus on renewals have contributed to better visibility [21][25] Question: How is the managed services business performing? - The managed services business returned to a normalized rate, with only recognized contracts included in forecasts [28][30] Question: Can you elaborate on the partnership with Lamar Advertising? - The partnership aims to enhance patient finding capabilities and is in early testing stages, with no current contributions factored into forecasts [50][54] Question: What drove the gross margin expansion in Q3? - Gross margin expansion was attributed to product mix and improved channel partner negotiations, with expectations for stabilization going forward [55][56]

Core Thesis - DigitalOcean Holdings, Inc. (DOCN) is facing significant operational, financial, and governance challenges that undermine its investment case [2][4][5] Company Overview - DOCN positions itself as a developer-friendly cloud infrastructure provider, offering various services including Infrastructure-as-a-Service and Platform-as-a-Service across multiple regions [2] - The company has a relatively small scale compared to larger hyperscalers, primarily renting compute and storage capacity with minimal differentiation [2] Financial Performance - DOCN has relied on aggressive accounting practices and acquisitions to mask a slowing core business, which raises concerns about its true growth [3][5] - The company is experiencing pricing pressure and capacity constraints in its GPU rental segment, a key growth area [4] - Upcoming refinancing of $1.5 billion in 0% convertible debt could increase cash burn and leverage risk significantly [4] Governance and Accounting Issues - There are concerns regarding related-party transactions and accounting practices that obscure the company's economic performance, including redefinitions of key financial metrics [3][5] - Internal control weaknesses and frequent changes in C-suite executives contribute to governance issues, undermining investor confidence [5] Market Risks - Regulatory changes targeting AI GPU sales to China pose a threat to DOCN's growth, potentially eliminating a significant revenue stream [4] - Multiple near-term catalysts, including refinancing and regulatory shifts, could lead to a severe rerating of the stock, with downside scenarios exceeding 60% [6]

Core Viewpoint - Rimini Street, Inc. is set to report its earnings on October 30, 2025, after market close, indicating a focus on its financial performance and future outlook [1] Company Announcement - The company will host a conference call and webcast on the same date to discuss its third-quarter results and the outlook for 2025, scheduled for 5:00 p.m. Eastern / 2:00 p.m. Pacific time [1]

Group 1: Stem, Inc. (STEM) - STEM shares increased by 45.6% in the last trading session, closing at $13.5, with significantly higher trading volume compared to normal sessions [1] - The stock has gained 6.4% over the past four weeks, driven by a focus on high-margin software and services, particularly PowerTrack and managed services, alongside cost reductions and improved operational efficiency [1] - The consensus EPS estimate for the upcoming quarterly report is a loss of $3.00 per share, reflecting a year-over-year change of +31.8%, with expected revenues of $33.1 million, down 2.7% from the previous year [2] Group 2: Industry Context - STEM belongs to the Zacks Computers - IT Services industry, which includes other companies like Taboola.com Ltd. (TBLA) [3] - TBLA's consensus EPS estimate for its upcoming report is unchanged at $0.09, representing a +1000% change from the previous year [4] - Both STEM and TBLA currently hold a Zacks Rank of 3 (Hold), indicating a neutral outlook for these stocks [3][4]

Group 1: Stem, Inc. (STEM) - STEM shares increased by 8.8% to $6.71 in the last trading session, following a 33.7% loss over the past four weeks [1] - The company is benefiting from a focus on high-margin software and services, particularly PowerTrack and managed services, along with cost reductions and improved operational efficiency [1] - The consensus EPS estimate for the upcoming report is a loss of $3.00 per share, reflecting a year-over-year change of +31.8%, with expected revenues of $33.1 million, down 2.7% from the previous year [2] Group 2: Earnings Estimates and Stock Performance - The consensus EPS estimate for STEM has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - STEM currently holds a Zacks Rank of 2 (Buy), suggesting positive market sentiment [3] - The company is part of the Zacks Computers - IT Services industry, which includes Cognizant (CTSH), also holding a Zacks Rank of 2 (Buy) [3][4] Group 3: Cognizant (CTSH) - Cognizant's consensus EPS estimate for the upcoming report has increased by 0.7% to $1.26, representing a year-over-year change of +7.7% [4] - Cognizant's stock closed the last trading session at $77.59, with a return of -4.3% over the past month [3][4]

Core Insights - Extendicare Inc. reported strong fourth quarter and full year results for 2024, highlighting significant growth in net operating income (NOI) and margins across all segments, driven by strategic transformations implemented over the past two years [4][15][20] Financial Performance - Revenue for Q4 2024 increased by 11.8% to $391.6 million, primarily due to long-term care (LTC) funding increases and growth in home health care services [15][28] - NOI for Q4 2024 rose to $53.8 million, reflecting a 27.1% increase when excluding out-of-period funding [15][28] - Adjusted EBITDA for Q4 2024 increased to $39.7 million, aligning with the growth in NOI [15][28] - Net earnings for Q4 2024 increased by $11.3 million to $19.9 million, driven by improved Adjusted EBITDA and a decline in other expenses [15][28] Business Segments - Long-term care revenue increased by 9.0% to $224.9 million in Q4 2024, with average occupancy rising to 98.0% [18][19] - Home health care revenue grew by 16.2% to $147.8 million in Q4 2024, supported by a 10.1% increase in average daily volume [21][22] - Managed services revenue increased by 13.8% to $18.8 million, driven by growth in SGP clients [24][25] Strategic Developments - The company announced an agreement to acquire nine LTC homes from Revera for approximately $60.3 million, expected to close in Q2 2025 [5][6] - Extendicare opened a new 192-bed LTC home in Kingston and a 256-bed LTC home in Stittsville, enhancing its service capacity [10][11] - A new $275 million senior secured credit facility was established, enabling the early redemption of 2025 convertible debentures and providing flexibility for future capital allocation [4][12] Dividend and Shareholder Returns - The company increased its dividend by 5.0% to 4.2 cents per month, reflecting improved performance and a payout ratio below 50% [13][15] Financial Position - As of December 31, 2024, Extendicare had cash and cash equivalents of $121.8 million, with access to an additional $108.5 million under its new credit facility [26][28]