Safe Harbor 4Q25 Earnings Call Presentation This presentation may include certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions. These statements are based on Pangaea's and managements' current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the sta ...

Fortinet Investor Briefing Summary Company Overview - **Company**: Fortinet (NasdaqGS:FTNT) - **Event Date**: March 10, 2026 - **Focus**: Cybersecurity innovations, strategic positioning, and growth prospects Key Industry Insights - **Cybersecurity Market**: The cybersecurity industry is experiencing rapid growth, with a total addressable market (TAM) exceeding $300 billion. Fortinet currently holds less than 20% market share in this fragmented market, indicating significant growth potential [16][18] - **AI Integration**: AI is seen as a major tailwind for Fortinet, enhancing their product offerings and operational efficiency. The company has invested $1 billion in AI infrastructure, including GPU farms and proprietary AI models [9][20] - **SASE and SD-WAN**: Fortinet is focusing on Unified SASE, integrating SD-WAN and cloud security into a single platform. The SASE market is expected to grow significantly, with Fortinet's offerings being approximately one-third the cost of competitors [8][20] Core Company Highlights - **Innovative Operating System**: Fortinet's operating system is the only one recognized as a leader in five Gartner Magic Quadrants, integrating multiple functions and utilizing ASIC technology for enhanced performance [4][5] - **Market Leadership**: Fortinet holds a 55% unit market share in firewalls and is the most deployed SD-WAN solution, outperforming competitors in product revenue growth [17][7] - **Investment in Infrastructure**: The company has invested significantly in building its infrastructure over the past 15 years, which supports its secure operations and AI capabilities [10][9] Financial Performance and Projections - **Revenue Growth**: Fortinet expects to grow at a rate of 12% or above over the next 3-5 years, with a historical CAGR of 13% [31][32] - **Free Cash Flow**: The company anticipates delivering high mid-teens adjusted free cash flows, supported by its business model [32] - **Stock Buyback**: Fortinet has repurchased $471 million in stock this quarter, with a total of $9 billion returned to shareholders since its IPO [34] Strategic Advantages - **Convergence of Security and Networking**: The demand for secure networking is growing, with customers seeking to reduce complexity by replacing disparate products with Fortinet's integrated solutions [16][17] - **Operational Technology (OT) Market**: Fortinet is well-positioned in the OT market, which is growing at over 20% annually, driven by the surge in connected devices and regulatory compliance [19][18] - **Sovereign SASE**: This model allows for localized high-performance security services, particularly in regions with strict data residency requirements, such as Europe and the Middle East [20] Customer Engagement and Market Trends - **Upsell Opportunities**: Fortinet is successfully upselling from firewalls to SD-WAN and SASE, with a focus on simplifying customer journeys and reducing total cost of ownership [28][29] - **Customer Demand**: There is a growing demand for integrated solutions that combine SD-WAN and SASE, with customers increasingly looking for cost-effective and efficient security solutions [56][67] - **AI Workloads**: The need for internal segmentation and network capacity tied to AI is expected to increase, with a shift towards on-premise solutions as organizations seek to secure their data [75][92] Conclusion Fortinet is strategically positioned to capitalize on the growing cybersecurity market through its innovative products, strong market share, and significant investments in AI and infrastructure. The company's focus on integrated solutions and customer-centric approaches is expected to drive sustained growth and profitability in the coming years.

Financial Data and Key Metrics Changes - IDT achieved record levels in several key consolidated financial metrics including gross profit, gross profit margin, Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP EPS in Q2 of fiscal year 2026 [8] - The company raised its consolidated Adjusted EBITDA guidance for fiscal 2026 from the range of $141-$145 million to $147-$149 million, reflecting a $5 million increase and a 12% increase compared to fiscal 2025 actuals [10] Business Line Data and Key Metrics Changes - NRS recurring revenue grew year-over-year, driven by significant increases in merchant services and SaaS fee revenues [4] - BOSS Money's digital channel transactions increased by 17% year-over-year, benefiting from the new federal remittance tax that accelerated customer migration from lower margin retail to higher margin digital channels [4][5] - Net2Phone's Adjusted EBITDA increased by 37% year-over-year to $3.9 million, exceeding initial expectations [11] Market Data and Key Metrics Changes - The implementation of the federal remittance tax has led to a shift in customer behavior, with a notable increase in digital transactions as customers adapt to minimize costs [26] - The overall market for remittances has been impacted by federal immigration policies, but the digital segment has shown resilience and growth [12][39] Company Strategy and Development Direction - The company is focusing on expanding its higher margin growth segments, specifically NRS, Fintech, and Net2Phone, while reducing reliance on the lower margin Traditional Communications segment [8] - IDT is developing new AI offerings, such as Agentic AI, targeting small and medium businesses, which are expected to enhance customer engagement and revenue [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's financial performance and outlook, highlighting strong cash flow contributions from growth segments [9] - The company is committed to increasing shareholder returns through stock repurchases and dividend increases, with a 17% increase in the annual dividend to $0.28 per share [7][9] Other Important Information - The company has repurchased $15 million in stock in the first six months of fiscal 2026, indicating a proactive approach to capital allocation [9] - The management noted that the advertising and data results were lower than expected due to decreases in CPM rates, which pressured revenues [4] Q&A Session Summary Question: Will NRS release its monthly report again? - Management indicated that the report would likely be released soon [18][19] Question: What caused the increase in SG&A and advertising costs? - Management attributed the increase to new product sales, hiring in advance of product launches, and a higher percentage of sales through resellers [20] Question: How is BOSS Money adapting to the new remittance tax? - Management noted a significant increase in digital transactions since the tax implementation, with ongoing efforts to understand its long-term impact [26][28] Question: What is the competitive landscape for BOSS Money? - Management acknowledged strong competition but emphasized the quality of their app and customer experience as key differentiators [42][43] Question: What are the plans for capital allocation and potential M&A? - Management expressed a preference for maintaining cash reserves for various purposes, including potential acquisitions, while continuing share buybacks opportunistically [47]

Financial Data and Key Metrics Changes - IDT achieved record levels in several key consolidated financial metrics including gross profit, gross profit margin, adjusted EBITDA, adjusted EBITDA margin, and non-GAAP EPS in Q2 of fiscal year 2026 [8] - The consolidated adjusted EBITDA guidance for fiscal 2026 was raised from the range of $141-$145 million to $147-$149 million, reflecting a $5 million increase and a 12% rise compared to fiscal 2025 actuals [10][11] - The three higher margin growth segments (NRS, Fintech, and Net2Phone) contributed 53% of IDT's consolidated adjusted EBITDA less CapEx, up from 45% in the year-ago quarter [9] Business Line Data and Key Metrics Changes - NRS recurring revenue grew year-over-year, driven by significant increases in merchant services and SaaS fee revenues [4] - BOSS Money's digital channel transactions increased by 17% year-over-year, benefiting from the new federal remittance tax that accelerated customer migration to the higher margin digital channel [4][12] - Net2Phone's adjusted EBITDA grew by 37% year-over-year to $3.9 million, exceeding initial expectations [11] Market Data and Key Metrics Changes - The implementation of the federal remittance tax on January 1 led to a shift from lower margin retail transactions to higher margin digital transactions, positively impacting revenue dynamics [5][12] - The advertising and data segment experienced lower-than-expected results due to decreases in CPM rates, which pressured revenues [4] Company Strategy and Development Direction - The company is focusing on expanding its merchant services and SaaS growth while developing offerings for differentiated retailer verticals [4] - IDT is investing in AI product development, with positive customer reviews and increased spending on new offerings like Agentic AI [5] - The company plans to continue increasing shareholder returns through stock repurchases and dividend increases, with a 17% increase in the annual dividend to $0.28 per share [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing rotation towards higher margin segments and the positive outlook for the remainder of the fiscal year [9][10] - The company noted that the remittance tax has had a significant impact on the remittance industry, particularly benefiting digital channels [12] - Management acknowledged the competitive landscape but emphasized the strength of their app and customer experience as key differentiators [41][42] Other Important Information - The company repurchased $15 million in stock during the first six months of fiscal 2026, indicating a commitment to returning capital to shareholders [10] - Traditional Communications segment remains a strong cash generator, contributing $19 million in adjusted EBITDA, although it saw a decrease compared to the previous year [7][14] Q&A Session Summary Question: Will NRS monthly reports be released again? - Management indicated that the report would likely be released soon [20] Question: What caused the increase in SG&A and advertising? - Management attributed the increase to new product sales, hiring in advance of product launches, and a higher percentage of sales through resellers [21] Question: How is BOSS Money adapting to the new remittance tax? - Management noted a significant increase in digital transactions since the tax implementation and observed a migration of retail customers to digital [28][29] Question: What is the outlook for MarketSpark? - Management refrained from commenting on MarketSpark's future plans due to confidentiality [30] Question: Any updates on M&A plans? - Management stated there are no updates on M&A discussions at this time [33] Question: What are the trends in the single store operator market? - Management indicated that economic factors are more impactful than immigration policies on retailer performance [38] Question: How does BOSS Money view competition in the digital space? - Management acknowledged strong competition but emphasized their app's quality and customer experience as competitive advantages [41][42]

Financial Data and Key Metrics Changes - IDT achieved record levels in several key consolidated financial metrics, including gross profit, gross profit margin, Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP EPS [8] - The company raised its consolidated Adjusted EBITDA guidance for fiscal 2026 from the range of $141-$145 million to $147-$149 million, reflecting a $5 million increase and a 12% increase compared to fiscal 2025 actuals [10][11] Business Line Data and Key Metrics Changes - NRS recurring revenue grew year-over-year, driven by significant increases in merchant services and SaaS fee revenues [4] - BOSS Money's digital channel transactions increased by 17% year-over-year, outperforming the industry [4] - Net2Phone's Adjusted EBITDA grew by 37% year-over-year to $3.9 million, benefiting from strengthening gross margins and operating leverage [11][12] Market Data and Key Metrics Changes - The new federal remittance tax, effective January 1, has accelerated customer migration from lower-margin retail channels to higher-margin digital channels [5][12] - The impact of the remittance tax has been primarily felt on transactions originated at retailer agents rather than those initiated through digital channels [11] Company Strategy and Development Direction - The company is focusing on expanding its higher-margin growth segments, namely NRS, Fintech, and Net2Phone, while the contributions from the lower-margin Traditional Communications segment are becoming less impactful [8] - IDT is developing new AI offerings, such as Agentic AI, targeting small and medium businesses [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing rotation towards higher-margin digital transactions and the positive impacts expected from the new federal remittance tax [5][12] - The company is pleased with its financial results and is continuing to build on its momentum, with expectations for further growth in the second half of the fiscal year [14] Other Important Information - The board has increased the annual dividend by 17% to $0.28 per year, marking the second consecutive year of dividend increases [6][9] - IDT repurchased $15 million of stock in the first six months of fiscal 2026, indicating a commitment to returning capital to shareholders [9] Q&A Session Summary Question: Will the monthly report for NRS be released again? - Management indicated that the report would likely be released soon [18][19] Question: What caused the increase in SG&A and the pickup in advertising? - The increase in SG&A was attributed to new product sales, hiring in advance of product launches, and a higher percentage of sales through resellers [20] Question: What are the dynamics of the advertising market? - Management acknowledged challenges in advertising sales but expressed confidence in improving connections between data and ads to drive future sales [22][23] Question: How has the remittance tax affected BOSS Money's revenue? - The tax has led to a significant increase in digital transactions, with management noting a strong uptick in January and February following the tax implementation [27][29] Question: What is the competitive landscape for BOSS Money? - Management acknowledged strong competition but emphasized the quality of their app and customer experience as key differentiators [43][44] Question: What are the plans for MarketSpark? - Management refrained from commenting on MarketSpark's business without authorization [32][34] Question: Any updates on M&A plans? - Management stated there are no updates on M&A discussions at this time [36]

Financial Data and Key Metrics Changes - The stock price increased from $5.88 per share at year-end 2024 to $9.44 at the end of 2025, representing an increase of over 60% [13] - Total shareholder return approximated 70%, including a $0.50 dividend per share declared and paid during the year [14] - Net asset value (NAV) grew from $6.68 at the end of 2024 to $8.09 at the end of 2025, a year-over-year growth of approximately 21% [14][15] Business Line Data and Key Metrics Changes - The top five positions in the investment portfolio as of December 31 were OpenAI, Whoop, Blink Health, Canva, and Learneo, accounting for approximately 54% of the investment portfolio at fair value [23] - The largest allocation of the investment portfolio was to artificial intelligence infrastructure and applications, representing approximately 31% [23] Market Data and Key Metrics Changes - The global build-out of AI infrastructure is accelerating, indicating a structural shift in the economy [7] - Public markets have shown mixed performance, with volatility remaining a feature of the environment [6] Company Strategy and Development Direction - The company aims to provide public market investors access to venture-backed private companies earlier in their life cycles, focusing on quality and long-term shareholder value [12][18] - The strategy is aligned with significant innovation trends in the global economy, particularly in AI [17] Management's Comments on Operating Environment and Future Outlook - Management believes that AI represents a multi-year structural transformation that is still in its early stages, with increasing demand for software, automation, and efficient digital systems [11] - The company is confident in its portfolio and disciplined in its investment approach, focusing on realizing gains thoughtfully [17] Other Important Information - The company declared a cash dividend of $0.25 per share paid on December 5, 2025, attributed to successful monetizations of public securities [30] - As of year-end, the company had approximately $50.1 million in liquid assets, including about $49 million in cash [32] Q&A Session Summary Question: Timeline for expected financings contributing $5 to $6.50 per share - Management indicated that they believe all financings will be completed by the end of the quarter, though announcements may vary [39] Question: Drivers behind the expected appreciation in NAV - Management noted multiple financings occurring, with significant portfolio positions driving the appreciation, while market conditions will also impact other parts of the portfolio [42] Question: Thoughts on private market valuations versus public market valuations - Management observed that the rapid growth in private market valuations is exceeding public market valuations, drawing parallels to historical market behaviors [54]

Financial Data and Key Metrics Changes - Nature's Sunshine reported net sales of $123.8 million for Q4 2025, a 5% increase from $118.2 million in Q4 2024, marking the strongest fourth quarter in company history [5][6] - Full year 2025 net sales reached $480.1 million, a 6% increase from $454.4 million in 2024, exceeding the high end of guidance [6][7] - Adjusted EBITDA for Q4 increased 16% to $11.9 million compared to $10.3 million in the prior year, driven by growth in net sales and improved gross margin [17] - GAAP net income for Q4 was $4.1 million or $0.23 per diluted share, compared to a loss of $0.3 million or $0.2 per diluted share in the year-ago quarter [16] Business Line Data and Key Metrics Changes - North America sales grew 6% year-over-year to $37.4 million in Q4, with digital sales increasing 47% compared to the prior year [7][8] - In Asia-Pacific, sales declined 1% year-over-year to $55.7 million, with strong performance in China and Japan, where sales increased 35% and 21% respectively [10][11] - European sales increased 18% year-over-year to $25.2 million, driven by 23% growth in Eastern Europe [13] Market Data and Key Metrics Changes - Digital subscriptions accounted for 47% of revenue in Q4, with TikTok auto-ship reaching 25% of TikTok revenue [9] - Subscription auto-ship in Japan accounted for nearly half of all sales, while in China it surged to 18% of revenue [11] Company Strategy and Development Direction - The company aims to grow to $1 billion in sales with improved profitability, focusing on digital expansion, geographic growth, and product innovation [22][23] - Key strategic initiatives include deeper penetration in core markets, exploring retail channels, and leveraging supply chain efficiencies [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong consumer demand and the effectiveness of digital initiatives, despite potential macroeconomic uncertainties [30][31] - The company anticipates mid-single-digit revenue growth in North America and Europe for 2026, with full-year net sales expected between $500 million and $515 million [19][20] Other Important Information - The gross margin increased to 72.5%, reflecting ongoing margin improvement initiatives [14] - The company has a clean balance sheet with $93.9 million in cash and no debt, positioning it well for future investments [17][18] Q&A Session Summary Question: Outlook for 2026 and EBITDA range - The wider EBITDA range reflects uncertainties around tariffs and inflation, with investments expected to yield benefits in future years [25][27] Question: Consumer demand trends in early 2026 - Strong consumer demand continues, with no signs of decline from Q4 trends [30][31] Question: Addressable market and growth strategy - The market for health supplements is growing, with opportunities for both organic growth and M&A to reach $1 billion in sales [39][41] Question: Digital growth and customer acquisition - Digital channels are synergistic, with customer acquisition through platforms like TikTok leading to increased sales across multiple channels [48][49]

Financial Data and Key Metrics Changes - The company achieved record profitability with a 30% year-over-year revenue growth, generating revenues of $3.8 million for Q4 2025, which is a 95% increase compared to the same period in the prior year [5][22] - Net income for Q4 2025 was $800,000, a significant improvement from a net loss of $2.9 million in the same quarter of the previous year, marking an increase of $3.7 million [22] - For the full year 2025, revenues totaled $11.3 million, up $2.6 million or 30% compared to the prior year, with net income reaching $6.8 million compared to a net loss of $3.1 million in 2024 [25][26] Business Line Data and Key Metrics Changes - The primary driver for revenue growth was higher digital game sales from the release of Le Mans Ultimate and increased downloadable content sales [22] - Revenues from the Le Mans franchise accounted for approximately 78% of total annual revenues in 2025, up from 34% in the previous year [48] - RaceControl, the company's subscription platform, contributed 11% of total revenues in 2025, compared to less than 1% in 2024, indicating a diversification of revenue streams [48] Market Data and Key Metrics Changes - Average concurrent players on Steam increased from approximately 786 in January 2025 to nearly 3,000 by December 2025, with a peak of over 8,700 concurrent players recorded in January 2026 [11][12] - The company noted that despite increased competition in the racing game market, Le Mans Ultimate continued to grow its player base and engagement [11] Company Strategy and Development Direction - The company is focused on scaling its platform and expanding its product offerings, with plans to bring Le Mans Ultimate to PlayStation and Xbox consoles, which represents a significant market expansion opportunity [18][19] - The strategy includes leveraging the RaceControl platform to create a hybrid revenue model combining game sales, downloadable content, and recurring subscription revenues [14][16] - The company is actively recruiting marketing talent to enhance its outreach as it prepares for console launches [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial stability and ability to continue building momentum through 2026 and beyond, emphasizing the successful turnaround achieved in 2025 [20][29] - The CEO highlighted the importance of product quality and community engagement in driving organic growth without significant marketing spend [12][29] Other Important Information - The company secured a $3 million revolving line of credit from Citibank in February 2026, which will support the development of Le Mans Ultimate for consoles [28] - As of December 31, 2025, the company had cash and cash equivalents of $5 million, which increased to $6 million by February 28, 2026, reflecting improved liquidity [26][27] Q&A Session Summary Question: What is the main driver for the decline in development costs year over year? - The company capitalized about $1.1 million of development costs related to significant upgrades and enhancements to the game, along with restructuring efforts that reduced payroll costs for developers and contractors [32][33] Question: Is AI a driver for the reduction in development costs? - AI is utilized in rapid iteration and development processes, contributing to faster updates and potentially lowering costs, while enhancing the creative output [34][35] Question: What is the expected impact of Le Mans Ultimate's console launch on revenue and margins? - The console launch is on track for early to mid-2027 and is expected to significantly expand the addressable market, providing a more accessible entry point for consumers [36][38] Question: How does the company plan to manage customer acquisition costs? - The company has invested very little in marketing, leading to organic growth, but is now looking to recruit marketing talent to broaden its audience [44][47]

Financial Data and Key Metrics Changes - The company achieved record quarterly billings of $111.2 million, representing an 8% year-over-year growth, the strongest in three years, and exceeding billing guidance for the quarter [4][23] - Full fiscal year billings reached $318.7 million, marking a 3% increase over the prior year, the first full year of billings growth since fiscal 2023 [23] - Gross retention rate improved to over 88%, the highest level in 12 quarters, reflecting strong customer relationships and progress in moving to a consumption pricing model [23][24] - Operating margin for the quarter was a record high of 10%, contributing to the highest full-year operating margin in company history at over 6% [25] - Adjusted free cash flow for the full year was near breakeven, an improvement of over $12 million from the prior year, representing the best full-year cash flow result [25] Business Line Data and Key Metrics Changes - The cohort of customers on consumption contracts achieved a net revenue retention of 111% in Q4, highlighting the value derived from the consumption model [6][24] - The company ended fiscal 2026 with 84% of annual recurring revenue on consumption pricing, a significant achievement [24] Market Data and Key Metrics Changes - Current subscription RPO grew 1% year-over-year to $227 million, while total subscription RPO grew 8% to $437.9 million, underscoring the strength of customer relationships [25][26] - Total revenue was above the high end of guidance at $79.6 million, with a gross margin of 78.2%, an improvement of over two percentage points year-over-year [26] Company Strategy and Development Direction - The company is focused on leveraging its innovative cloud data platform to benefit from the rapid adoption of AI, positioning itself as a strategic data and AI platform for modern business challenges [7][10] - The introduction of App Catalyst, an AI-powered app builder, aims to enhance customer engagement and drive deeper adoption of the platform [9] - The company is committed to operational efficiency while investing in key growth areas such as AI innovation and ecosystem partnerships [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing adoption of the consumption model and the potential for improved retention rates as more customers engage with the platform [34][36] - The company expects GAAP revenue to remain relatively flat, with modest improvement in non-GAAP EPS and positive adjusted free cash flow for the upcoming fiscal year [28] Other Important Information - Domo received significant recognition from industry analysts, including multiple awards for technology innovation and being recognized as a leader in AI analytics [21] - The company is actively engaging with customers to explore AI-driven solutions, which are increasingly becoming a core part of their operations [10][31] Q&A Session Summary Question: Competitive Environment and Win Rates - Management noted that customers are increasingly focused on implementing AI solutions, which highlights the platform's capabilities and has improved relationships with ecosystem partners [30][32] Question: Future Retention Rates - Management is encouraged by the net retention rate among consumption customers and expects continued improvement as they deepen customer engagement [33][36] Question: Sales Cycle Dynamics - The sales cycles have been mixed, with some deals taking longer due to the complexity of global data strategies, while others are closing more quickly as relationships with ecosystem partners strengthen [47][50] Question: Customer Spending Mechanisms - The company has seen significant usage of partner marketplace funds to purchase Domo services, leading to longer contract renewals and upsells [54][58] Question: Consumption Customer Usage - Management indicated that net revenue retention for consumption customers is a strong indicator of increased usage, with ongoing efforts to enhance customer engagement and explore the platform [61][68]

Financial Data and Key Metrics Changes - The company reported an adjusted net loss of $21 million in Q4 2025, compared to a loss of $3 million in Q3 2025, primarily due to lower pull-through weighted gain on sale margin and higher amortization on the MSR portfolio [11][12] - Adjusted total revenue for Q4 2025 was $316 million, down from $325 million in Q3 2025 [12] - Pull-through weighted lock volume increased by 4% to $7.3 billion in Q4 2025 from $7 billion in Q3 2025 [11] - Loan origination volume reached $8.0 billion in Q4 2025, a 23% increase from $6.5 billion in Q3 2025, marking the highest level since 2022 [13][18] Business Line Data and Key Metrics Changes - Servicing fee income increased slightly from $112 million in Q3 2025 to $113 million in Q4 2025, reflecting growth in the unpaid principal balance of the servicing portfolio [14] - The company originated fewer higher-margin second trust deeds and FHA, VA loans in Q4 2025, which contributed to larger average loan balances but decreased margin percentage [13] Market Data and Key Metrics Changes - The company gained market share in an expanding market, achieving a 71% recapture rate from its in-house servicing platform [4] - The retail lending market remains fragmented, with no lender controlling more than 5% market share, presenting significant opportunities for customer-facing scaled originators [5] Company Strategy and Development Direction - The company aims to leverage its digital-first direct lending business and in-market retail business to capture profitable market share growth across refinance, resale, and new home loans [45] - A focus on operational efficiency and technology investments is expected to drive growth and improve customer experience [9][18] - The company plans to re-enter the wholesale lending channel to achieve greater scale and improve operating efficiency [41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for market consolidation and the benefits for large-scale, diversified customer-facing originators [4] - The company anticipates a larger refinance market and aims to improve customer acquisition and retention through technology and AI [9][18] - Management expects Q1 2026 pull-through weighted lock volume to be between $7.75 billion and $8.75 billion, with origination volume between $6.75 billion and $7.75 billion [16] Other Important Information - The company ended Q4 2025 with $337 million in cash, a decrease of $222 million from Q3 2025, reflecting investments in loan inventory and repayment of unsecured notes [18] - Year-over-year, adjusted revenue increased by 10% while limiting expense growth to less than 1%, resulting in a 31% reduction in adjusted net loss [18] Q&A Session Summary Question: Can you expand on your profitable share gains and where you're seeing success? - Management highlighted a diversified retail customer touch model, with growth in the builder business and opportunities in direct lending, emphasizing the need to rebuild marketing and lead management systems [21][26] Question: What are your expectations for non-volume related OpEx and profitability in 2026? - Management indicated modest investment in technology and innovation initiatives, with most expense growth being volume-related due to loan officer additions [28][29] Question: What is the expected run rate for amortization expense going forward? - Management noted that the increase in amortization expense was related to higher refinance volumes and may moderate depending on future interest rates [33][34] Question: Can you discuss the strategy for re-entering the wholesale lending channel? - Management explained that re-entering wholesale lending will allow for greater scale and improved operating efficiency, with expectations for margin expansion as refinance volume returns [40][41] Question: What level of recapture are you targeting going forward? - Management stated that they aim to maintain a recapture rate around 71%, with potential for improvement through technology and AI advancements [42]