Financial Data and Key Metrics Changes - Net revenue for Q2 was $8.3 billion, exceeding expectations, with core operating income of $436 million and a core operating margin of 5.3% [6][5] - GAAP diluted earnings per share was $2.08, while core diluted earnings per share for Q2 was $2.69, reflecting results above expectations [6][5] - Cash flow from operations in Q2 was $411 million, with adjusted free cash flow of $360 million for the quarter, positioning the company to deliver over $1.3 billion in adjusted free cash flow for the full fiscal year [9][9] Performance by Business Segment - Regulated Industries generated $3 billion in revenue, up 10% year-over-year, with a core operating margin of 4.8% [7][8] - Intelligent Infrastructure revenue was $4 billion, up 52% year-over-year, with a core operating margin of 5.7%, reflecting broad-based growth across capital equipment, cloud, and networking [8][8] - Connected Living and Digital Commerce revenue was $1.2 billion, down 8% year-over-year, with a core operating margin of 4.9% [8][8] Market Data and Key Metrics Changes - In regulated industries, revenue was driven mainly by automotive and renewables, with automotive showing signs of recovery [5][20] - Intelligent Infrastructure growth was supported by demand across cloud and data center infrastructure, advanced networking, and communications [14][19] - The outlook for Connected Living and Digital Commerce remains stable, with growth in automation and robotics expected to drive future performance [23][28] Company Strategy and Development Direction - The company is focused on margin expansion, capital efficiency, and sustained cash generation, with a diversified portfolio driving growth [12][24] - The Intelligent Infrastructure segment is expected to grow to approximately $16.5 billion, driven by demand in cloud and data center infrastructure [16][19] - The company is committed to returning capital to shareholders through share repurchases and maintaining a strong investment-grade credit profile [9][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance and broad-based revenue growth, particularly in Intelligent Infrastructure [14][27] - The company anticipates continued recovery in automotive and renewables, while remaining disciplined in its approach to these markets [20][21] - The outlook for fiscal 2026 has been raised to approximately $34 billion in revenue, with core EPS expectations also increased [24][28] Other Important Information - The company repurchased $300 million of shares under its existing share repurchase authorization during Q2 [9][9] - The balance sheet remains strong, ending Q2 with $1.8 billion in cash [9][9] Q&A Session Summary Question: Can you help us rank order where you see the most opportunity in Intelligent Infrastructure? - Management indicated that growth was broad-based across cloud, networking, and capital equipment, with specific increases of $600 million, $400 million, and $100 million respectively [31][32] Question: Can you talk about the factors that are going into operating margin expectations? - Management expressed confidence in achieving higher margins, citing a good mix of business and improved capacity utilization as key drivers [36][40] Question: How are you thinking about CapEx spend for this year? - Management indicated that CapEx is expected to be in the 1.5%-2% range of revenue, with a commitment to share buybacks and prudent capital allocation strategies [43][44] Question: Can you provide an update on the data center and AI market? - Management confirmed ongoing positive momentum with hyperscalers and indicated that discussions with a third hyperscaler are progressing well [49][50] Question: What are you seeing in terms of supply chain constraints? - Management acknowledged supply chain constraints, particularly in memory and PCB components, but noted that the supply chain team is effectively managing these challenges [53][55]

Financial Data and Key Metrics Changes - The company achieved an annual recurring revenue (ARR) of $1.125 billion, representing a 28% year-over-year growth, consistent with the previous three quarters [20][25] - SaaS ARR reached $746 million, a 38% year-over-year increase, accounting for 90% of net new ARR in fiscal Q4 [21][25] - The adjusted operating margin for Q4 was 20.6%, an expansion of 160 basis points year-over-year, while the annual adjusted operating margin was 18.1%, an increase of 270 basis points [25][27] Business Line Data and Key Metrics Changes - Net new ARR from emerging products more than doubled quarter-over-quarter, contributing approximately 17% of net new ARR in fiscal Q4 [22] - The average ARR per SaaS customer grew to over $380,000, a 19% increase from the previous year [22] - The company closed the fiscal year with 215 customers exceeding $1 million in ARR, a 34% increase from the previous year [23] Market Data and Key Metrics Changes - Non-human identities accounted for approximately 25% of SaaS identity growth in Q4 and now represent 11% of SaaS identities under governance [14] - The company noted a significant opportunity for growth as existing perpetual and term license customers represent approximately $350 million in ARR, with a typical 2x-3x uplift upon migration [23] Company Strategy and Development Direction - The company aims to deepen its footprint within existing customers while attracting new customers, leveraging its SaaS-first strategy and AI-powered platform [16][17] - The focus is on defining a new standard of adaptive identity governance, emphasizing real-time governance and least privilege access [17][18] - The company is positioned as a foundational security control plane for the modern AI-powered enterprise, capitalizing on the growing demand for identity security solutions [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the evolving market landscape, particularly with the rise of AI and non-human identities [10][46] - The company anticipates FY 2027 to be a year of AI adoption, with a strong pipeline and healthy demand for its identity security platform [26][32] - Management highlighted the importance of domain knowledge and the ability to leverage AI to enhance customer security and operational efficiency [83] Other Important Information - The company generated $64 million in cash from operating activities and $57 million in free cash flow, representing a 19.5% free cash flow margin [25] - The guidance for FY 2027 includes an expected ARR of $1.361 billion, up 21% year-over-year, and revenue of approximately $1.265 billion, an 18% increase year-over-year [27] Q&A Session Summary Question: ARR guidance for fiscal 2027 - Management indicated strong momentum heading into the year, with a focus on a prudent approach to initial guidance while maintaining a strong pipeline and retention rates [31][32] Question: Impact of new pricing models on customer engagement - Management noted that new pricing models, such as the Flex monetization, have significantly driven customer engagement and migration [38][39] Question: Market expansion and competition - Management emphasized that the company is well-positioned to capture market opportunities, particularly in the context of AI and non-human identities, while maintaining a focus on unique value propositions [46][48] Question: Changes in sales cycles due to non-human identities - Management acknowledged that sales cycles have elongated slightly but did not indicate any significant changes in the overall narrative [99]

Financial Data and Key Metrics Changes - Revenue for the year ended December 31, 2025, was $22 million, a decrease of approximately 14% from $25.7 million in 2024 [17] - Gross profit increased to $8.4 million or 38.2% of revenue compared to $8.2 million or 32% of revenue in 2024 [19] - Operating loss narrowed by 33% to $19.7 million in 2025 compared to $29.3 million in 2024 [22] - Net loss narrowed by 31% to $19.9 million in 2025 compared to $28.9 million in 2024 [22] - Operating cash usage reduced by 23% to $16.8 million in 2025 compared to $21.7 million in 2024 [23] Business Line Data and Key Metrics Changes - Revenue from ReWalk Personal Exoskeleton was relatively flat at $8.5 million in 2025 compared to $8.9 million in 2024, with units sold increasing by 22% year-over-year [17] - Revenue from MyoCycle FES bike declined by 50% to $600,000, reflecting a strategic focus on core products [18] - Revenue from AlterG products and services was $12.9 million, an 18% decline from 2024, primarily due to lower international sales [18] Market Data and Key Metrics Changes - Reimbursement coverage for ReWalk expanded to include three largest Medicare Advantage insurers in the U.S., covering over 16 million lives [13] - International distribution efforts accelerated following the receipt of CE mark, with Germany as the primary test market [13] Company Strategy and Development Direction - The company is executing a strategy to build a diversified biomedical innovation company with multiple technology platforms [3] - A strategic transaction with Oramed is expected to strengthen the financial foundation and expand strategic scope [4] - Focus on cash flow positive operations while investing in innovations that will define the future of the company [3][25] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about growth in the core med tech business and improvements in operating expenses [15] - The company is committed to continuous innovation and leveraging advanced robotics and AI technologies [10] Other Important Information - The company plans to increase investment in R&D to advance new products to market, including a recently acquired powered upper body exoskeleton [21] - The company will not provide guidance at this time due to significant transformations and pending agreements [14] Q&A Session Summary Question: How does the Oramed POD technology align with the company's commercial infrastructure? - Management indicated that the integration of Oramed's technology will drive synergies across med tech and biotech, enhancing the company's decentralized approach to commercialization [27][31] Question: What is the timeline for the upper extremity robotic assistance product? - Management expects the product to take 18-24 months to complete, with a low barrier to entry for regulatory approval [32][33] Question: How should investors view the company's diversification into biotech? - Management emphasized that a diversified portfolio in med tech and biotech is beneficial, providing resilience and multiple opportunities for product commercialization [42][43] Question: What drove the additional execution in revenue? - Management attributed the revenue performance to improved understanding of reimbursement pathways and better payer coverage, with expectations for continued growth [49][50]

Financial Data and Key Metrics Changes - As of December 31, 2025, Ovid Therapeutics reported $90.4 million in cash equivalents and marketable securities [40] - The company announced PIPE financing with gross proceeds totaling $60 million, which is expected to extend the cash runway into the second half of 2028 [40] - Pro forma cash runway is anticipated to extend well into 2029, assuming full exercise of Series A warrants triggered by regulatory clearance [40] Business Line Data and Key Metrics Changes - The company received regulatory clearance for OV4071, the first-ever oral KCC2 direct activator, a quarter earlier than expected [4] - OV329, a next-generation GABA aminotransferase inhibitor, has shown no serious adverse events at the 7-milligram dose, indicating a strong safety and tolerability profile [5][11] - The company is launching additional studies for OV329 in infantile spasms and tuberous sclerosis complex, expanding its clinical pipeline [5][19] Market Data and Key Metrics Changes - The market opportunity for OV329 is significant, especially in treating conditions like infantile spasms and tuberous sclerosis complex, where current treatment options are limited [20][25] - The peak sales of Sabril (Vigabatrin) reached over $320 million, indicating a substantial market despite safety concerns that limited its use [76] Company Strategy and Development Direction - Ovid Therapeutics aims to develop safer and more effective treatments for neural hyperexcitability, focusing on small molecule programs [6][7] - The company plans to initiate a phase 2 randomized placebo-controlled trial for OV329 in focal onset seizures and is also exploring pediatric formulations for underserved populations [17][68] - The strategic focus includes expanding the use of OV329 beyond focal onset seizures to potentially include status epilepticus in the future [92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the safety and efficacy of OV329, emphasizing the importance of robust safety data to support regulatory submissions [48] - The company is optimistic about the potential of OV4071 in treating various psychosis-related conditions, with plans for further data releases in the coming months [32][34] - Management highlighted the importance of addressing unmet needs in epilepsy treatment, particularly for pediatric patients [19][21] Other Important Information - The company does not plan to host regular quarterly earnings calls moving forward, indicating a shift in communication strategy [3] - The clearance of OV4071 triggers a 30-day period for Series A warrants, which could bring in additional capital exceeding $53 million [6] Q&A Session Summary Question: Can you elaborate on the visual monitoring for OV329? - Management confirmed that optic and retinal monitoring will continue through phase 2 and pivotal studies to ensure robust safety data [47] Question: What are the key endpoints for the phase 2 design of OV329? - The phase 2 study will target adults with treatment-resistant focal onset seizures, focusing on traditional endpoints like percent reduction in seizures and CGI endpoints [58] Question: What is the rationale for the ketamine challenge study for OV4071? - The ketamine challenge aims to demonstrate that OV4071 is effectively entering the brain and exhibiting GABAergic activity, with plans to correlate this with clinical symptom improvement [60] Question: What patient population will be enrolled in the open-label photosensitive epilepsy study? - The study will enroll adults with diagnosed epilepsy and documented photosensitivity, using specialized sites for the research [65] Question: How does the company plan to address differential pricing for different populations? - The company plans to develop differentiated formulations for adult and pediatric populations, allowing for appropriate and responsible differential pricing [68]

Financial Data and Key Metrics Changes - For Q4 2025, total revenue was $3.1 million, a 62% increase from $1.9 million in Q4 2024, driven by the U.S. launch of CGuard Prime and increased international market penetration [11] - U.S. revenue for Q4 was $866,000, representing a 74% sequential growth compared to Q3 [11] - International revenue for Q4 was $2.3 million, reflecting a 17% growth compared to $1.9 million in Q4 2024 [11] - Gross profit for Q4 2025 was $1.2 million, or 37.5% of revenue, up from $469,000 or 24.1% in Q4 2024, primarily due to a favorable revenue mix towards U.S. sales [12] - Net loss for Q4 2025 was $11.8 million, or $0.14 per share, compared to a net loss of $9.2 million or $0.19 per share in Q4 2024 [14] - Cash and cash equivalents were $54.2 million as of December 31, 2025, compared to $34.6 million at the end of the previous year [14] Business Line Data and Key Metrics Changes - The CGuard Prime stent platform is central to the company's strategy, with over 500 cases completed and approvals gained in prominent Integrated Delivery Networks (IDNs) in the U.S. [5][6] - The company has established a U.S. commercial team of over 30 people, focusing on operational expansion and increasing manufacturing capacity [5] Market Data and Key Metrics Changes - The company is focusing on expanding its market presence in the U.S. and internationally, with a controlled rollout strategy to ensure sustainable growth [49] - The anticipated FDA approval for TCAR indications is expected to significantly boost market opportunities, with over 35,000 TCAR procedures performed annually [8] Company Strategy and Development Direction - The company aims to achieve market leadership through a stent-first strategy, focusing on operational excellence and customer support [4] - Plans include expanding the clinical pipeline and advancing indications for CGuard, with a focus on TCAR procedures and enhancing the delivery system [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of U.S. sales growth and the potential for continued progress in 2026, with revenue expectations between $13 million and $15 million, reflecting a growth of approximately 45%-65% over 2025 [15][16] - The company is committed to continuous improvement and exceeding customer expectations, with plans to introduce enhancements to the delivery system in Q4 2026 [26] Other Important Information - The company has two remaining milestone-based tranches from a private placement, each providing gross proceeds of $17.9 million if fully exercised [14] - The company is leveraging real-world experience from over 70,000 cases in 30 international markets to inform its U.S. launch strategy [6] Q&A Session Summary Question: Guidance for FY 2026 - The CFO provided insights on U.S. versus international sales expectations, indicating moderate growth in OUS markets and anticipated acceleration in U.S. growth in the second half of 2026 due to TCAR indication and enhanced clinical performance [18][20] Question: Account Standpoint in the U.S. - The company has completed cases in approximately 80 centers, with over 200 centers in the pipeline for VAC and evaluation stages [21][23] Question: Next Generation Delivery System - The next generation delivery system is expected to be submitted for FDA review with minor changes, aiming for a 30-day review process [25][27] Question: Timing for CGUARDIANS II Data - The first reveal of CGUARDIANS II data is expected at the Charing Cross Symposium in late April, likely presenting interim data [30] Question: Account Adoption and Productivity Metrics - The company aims for CGuard to become the everyday stent for physicians, with a focus on increasing account productivity and support [34][35]

Financial Data and Key Metrics Changes - SailPoint achieved an annual recurring revenue (ARR) of $1.125 billion, representing a 28% year-over-year growth, which is consistent with the growth rate maintained over the past three quarters [19][24] - The SaaS ARR reached $746 million, reflecting a 38% year-over-year growth and accounting for 90% of net new ARR for fiscal Q4 [19][24] - The adjusted operating margin for Q4 was 20.6%, an increase of 160 basis points year-over-year, while the annual adjusted operating margin was 18.1%, up 270 basis points [24][26] Business Line Data and Key Metrics Changes - The SaaS customer count grew by 16% year-over-year, with the average ARR per SaaS customer increasing to over $380,000, a 19% increase from the previous year [6][20] - Net new ARR from emerging products more than doubled quarter-over-quarter, accounting for approximately 17% of net new ARR in fiscal Q4 [19][20] - The total ARR from existing customers who adopted AI identity solutions expanded by more than 50% year-over-year [20] Market Data and Key Metrics Changes - Non-human identities accounted for approximately 25% of SaaS identity growth in Q4 and now represent 11% of SaaS identities under governance [12] - The company closed more than 500 transactions directly tied to new innovations, indicating strong market demand [12] Company Strategy and Development Direction - SailPoint aims to deepen its footprint within existing customers while attracting new customers by leveraging its AI-powered platform and flexible pricing model [14][15] - The company is positioned to capitalize on the growing demand for identity security solutions in the context of an expanding non-human workforce driven by AI [9][10] - The strategic focus is on defining a new standard of adaptive identity governance, emphasizing real-time governance and least privilege access [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the evolving market landscape, particularly with the rise of AI and the increasing complexity of identity security [9][10] - The company anticipates FY 27 to be a significant year for AI adoption, with a strong pipeline and healthy demand for its solutions [14][25] - Management highlighted the importance of maintaining a conservative approach in guidance while recognizing the potential for future growth driven by emerging identity types [32][42] Other Important Information - The company reported strong cash flow with $64 million from operating activities and $57 million in free cash flow, representing a 19.5% free cash flow margin [24] - The gross retention rate remained strong at 97%, indicating high customer satisfaction and trust in the platform [23] Q&A Session Summary Question: ARR guidance for fiscal 2027 - Management indicated strong momentum heading into the year, with a focus on maintaining a conservative approach to guidance while recognizing the potential for growth from migrations and emerging products [30][32] Question: Impact of new pricing models - Management noted that the new pricing models, such as the Navigator Select, have shown significant early traction and are expected to drive further adoption [35][38] Question: Market expansion and competition - Management emphasized that the rise of AI represents a significant market expansion opportunity, and the company is well-positioned to capture this demand due to its unique capabilities [41][45] Question: Changes in sales cycles due to non-human identities - Management acknowledged that sales cycles have elongated slightly but noted that this is not a significant concern, as customers are increasingly looking for secure deployment of agentic AI [98]

Financial Data and Key Metrics Changes - In Q4 2025, excluding the maritime business, the company achieved a 44% year-over-year revenue growth and a 36% sequential growth, meeting the midpoint of its financial outlook [31][32] - The full year revenue was $71.6 million, reflecting a decrease due to the maritime divestiture, but Q4 revenue grew 44% year-over-year when excluding maritime [32][33] - Non-GAAP gross margin improved to 43% in Q4, a five percentage point increase year-over-year, and full year gross margin reached 44% [32][33] - The company retired all outstanding debt post-maritime divestiture and ended the year with $81.8 million in cash and marketable securities [32][40] Business Line Data and Key Metrics Changes - The growth was driven by higher sales of radio occultation and ocean winds data under NOAA awards, along with increased revenue from space services [33] - The company expects a midpoint core revenue growth of 50% for 2026, driven by expansion across defense, civil, and commercial markets [25][31] Market Data and Key Metrics Changes - The defense and intelligence spending on space is surging, with the U.S. targeting a $1.5 trillion defense budget for fiscal year 2027 and European nations making historic investments in strategic autonomy [5][14] - NOAA and NASA are shifting towards commercial data procurement, with NOAA projecting billions in commercial weather data purchases over the next decade [5][18] Company Strategy and Development Direction - The company is positioned to capture the growing demand for space-based intelligence, with a focus on defense and space reconnaissance, particularly through its RFGL capability [10][12] - The strategy includes scaling across defense, civil government, and commercial markets, with plans to expand from radio occultation into a multi-sensor data portfolio [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, highlighting the favorable macro conditions and unique positioning in the marketplace [30] - The company anticipates durable growth of at least 30% over the next few years, supported by a strong pipeline and favorable market conditions [25][26] Other Important Information - The company conducted six launches in 2025, deploying 39 satellites, and plans to continue this momentum into 2026 with additional launches [23] - The company is actively engaged with 17 countries across Europe, the Nordics, the Middle East, and the Asia Pacific region, focusing on partnerships with defense contractors and ministries of defense [16][17] Q&A Session Summary Question: Guidance on Q1 revenue and annual guidance - Management indicated that revenue is expected to ramp up throughout the year, with a focus on radio frequency geolocation opportunities and NOAA's increasing commercial dataset purchases [42][44] Question: Gross margin targets - Management clarified that while they expect margin growth in 2026, achieving higher targets in the future will be driven by revenue growth [46] Question: Status of WildFireSat program - Management stated that execution is paused while discussions are ongoing, and they have conservatively excluded any revenue from this program in their guidance [48] Question: Visibility of revenue guidance - Approximately 75% of the revenue guidance is covered through existing contracts, providing strong visibility [68] Question: Transition from pilot programs to production orders - The transition timeframe varies by customer and country, but management is optimistic about momentum in RFGL opportunities for 2026 [70]

Financial Data and Key Metrics Changes - Net income for 2025 increased by 38.2% year-over-year to $6.3 million, with net cash inflow from operations reaching $3.2 million [5][29] - Total revenue for 2025 was $81.4 million, a decrease from $91.6 million in 2024, while revenue from services increased by 1.8% year-over-year to $60 million [27][28] - Gross margin improved to 52.4% in 2025 from 48.4% in 2024, with service gross margin at 58% compared to 56.8% in 2024 [28][29] Business Line Data and Key Metrics Changes - GlocalMe Life business saw average daily active users (DAUs) increase by 409.1% year-over-year, while average daily active terminals (DATs) surged by 897.9% [8][19] - GlocalMe IoT and GlocalMe SIM also reported significant growth, with average MATs increasing by 127.5% and 133.8% respectively [18][26] - The GlocalMe SIM business line's average daily active terminals increased by 180.8% year-over-year, indicating strong market traction [12] Market Data and Key Metrics Changes - In Q4 2025, Japan contributed 43.6% to total revenue, while Mainland China contributed 26.8%, North America 11.2%, and other regions 18.4% [22] - The average daily data usage per terminal was 1.59 GB in December 2025, reflecting user engagement trends [17] Company Strategy and Development Direction - The company is focused on overcoming the digital divide through innovative connectivity solutions and has invested in three new business lines: GlocalMe IoT, GlocalMe SIM, and GlocalMe Life [6][14] - The introduction of the PetPogo ecosystem aims to bridge the emotional digital divide between pets and their owners, showcasing a strategic shift towards AI and big data connectivity [10][41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant macroeconomic challenges in 2025 but emphasized the resilience of their core strategy and the potential for growth in 2026 [5][14] - For Q1 2026, the company expects total revenue to be between $15 million and $17 million, representing a decrease of 9.1% to 14.4% compared to Q1 2025 [14][15] Other Important Information - The company had 206 patents as of December 31, 2025, with 181 approved and 25 pending [21] - Total operating expenses, excluding share-based compensation, were reduced to $9.4 million in Q4 2025 from $13.9 million in Q4 2024 [23] Q&A Session Summary Question: What product lines or geographic areas are expected to drive growth in 2026? - Management indicated that the main growth drivers will be GlocalMe IoT, GlocalMe SIM, GlocalMe Life, and the newly separated PetPogo business line [34][36] Question: Can you provide more information about GlocalMe IoT's growth? - The IoT business is expected to see growth in sectors such as security cameras and in-car infotainment, with significant partnerships established [37][38] Question: Can you elaborate on the PetPogo ecosystem and its expected impact on sales? - The PetPogo ecosystem aims to enhance communication and safety between pets and owners, with strong market interest noted during recent exhibitions [41][44] Question: Will the decline in R&D expenses impact product development? - Management stated that R&D efficiency has improved, and investments will continue in new business lines, particularly the platform business [47][49] Question: What are the reasons for the decline in product sales, and will it continue? - The decline in product sales was attributed to external economic factors, but management believes that service revenue will recover as user engagement increases [58][60]

Financial Data and Key Metrics Changes - Revenue for the year ended December 31, 2025, was $22 million, a decrease of approximately 14% from $25.7 million in 2024 [18] - Gross profit increased to $8.4 million or 38.2% of revenue compared to $8.2 million or 32% of revenue in 2024 [20] - Operating loss narrowed by 33% to $19.7 million in 2025 compared to $29.3 million in 2024 [22] - Net loss narrowed by 31% to $19.9 million in 2025 compared to $28.9 million in 2024 [22] - Operating cash usage reduced by 23% to $16.8 million in 2025 compared to $21.7 million in 2024 [23] Business Line Data and Key Metrics Changes - Revenue from ReWalk Personal Exoskeleton was relatively flat at $8.5 million in 2025 compared to $8.9 million in 2024, with units sold increasing by 22% year-over-year [18] - Revenue from MyoCycle FES bike declined by 50% to $600,000, reflecting a strategic focus on core products [19] - Revenue from AlterG products and services was $12.9 million, a decline of 18% from 2024, primarily due to lower international sales [19] Market Data and Key Metrics Changes - ReWalk achieved reimbursement coverage with three largest Medicare Advantage insurers in the U.S., representing over 16 million covered lives [13] - International distribution for ReWalk expanded, with Germany as the primary test market [13] Company Strategy and Development Direction - The company is executing a strategy to build a diversified biomedical innovation company with multiple technology platforms [3] - A strategic transaction with Oramed is expected to strengthen the financial foundation and support growth initiatives [4] - The acquisition of technology from Skelable aims to enhance the upper extremity rehabilitation market [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about growth in the core med tech business and improvements in operating expenses driving the company toward positive cash flow [16] - The company is focused on expanding reimbursement coverage and building a stronger payer engagement capability [11] Other Important Information - The company will not provide guidance at this time due to significant transformations and pending transactions [15] - The strategic agreement with Oramed is expected to close soon, providing additional capital support [23] Q&A Session Summary Question: How does the Oramed POD technology align with the company's commercial infrastructure? - Management indicated that the integration of Oramed's technology will drive synergies across med tech and biotech, enhancing the company's decentralized approach to commercialization [27] Question: What is the timeline for the upper extremity robotic assistance product? - Management stated that the product could be 510(k) exempt and expects to complete the necessary studies within 18-24 months [31][32] Question: How does the company plan to address competition in the upper extremity market? - Management acknowledged the presence of competitors but emphasized the unique approach and simplicity of their product [36] Question: Can the company quantify the backlog entering 2026? - Management noted that while the pipeline is growing, specific numbers are not available at this time, but there is a focus on the 22% growth in units year-over-year [51]

Financial Data and Key Metrics Changes - Net revenue for Q2 was $8.3 billion, exceeding expectations, with core operating income of $436 million and a core operating margin of 5.3% [5][4] - GAAP diluted earnings per share was $2.08, while core diluted earnings per share for Q2 was $2.69, reflecting results above expectations [5][4] - Adjusted free cash flow for Q2 was $360 million, with a full-year expectation of over $1.3 billion [7][8] Performance by Business Segment - Regulated Industries generated $3 billion in revenue, up 10% year-over-year, with a core operating margin of 4.8% [6][5] - Intelligent Infrastructure revenue was $4 billion, up 52% year-over-year, with a core operating margin of 5.7%, reflecting broad-based growth [6][5] - Connected Living and Digital Commerce revenue was $1.2 billion, down 8% year-over-year, with a core operating margin of 4.9% [6][5] Market Data and Key Metrics Changes - In regulated industries, revenue was driven mainly by automotive and renewables, with automotive showing signs of recovery [4][19] - Intelligent Infrastructure growth was supported by demand in cloud and data center infrastructure, networking, and communications [4][12] - Connected Living and Digital Commerce showed stability, with growth in robotics and automation partially offsetting declines [6][21] Company Strategy and Development Direction - The company is focused on margin expansion, capital efficiency, and sustained cash generation, with a diversified portfolio driving growth [11][22] - The outlook for Intelligent Infrastructure has been raised to approximately $16.5 billion, driven by growth in all end markets [14][22] - The company is committed to returning capital to shareholders through share repurchases and maintaining an investment-grade credit profile [8][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance and momentum entering Q3, with expectations for continued growth across segments [11][12] - The company noted that while there are uncertainties in the geopolitical landscape, it remains optimistic about the recovery in automotive and renewables [19][20] - The outlook for fiscal 2026 has been raised to approximately $34 billion in revenue and $12.25 in diluted earnings per share, reflecting strong demand and operational execution [22][26] Other Important Information - The company repurchased $300 million of shares during Q2 under its existing share repurchase authorization [8] - Inventory days were reported at 75, with a net of inventory deposits from customers at 60 days, consistent with targeted ranges [7][6] Q&A Session Summary Question: What are the growth opportunities in Intelligent Infrastructure? - Management indicated that growth was broad-based across cloud, networking, and capital equipment, with significant increases in revenue across these areas [28][29] Question: What factors are influencing operating margins? - Management noted that while margins are currently at 5.7%, there is potential for improvement due to a favorable mix of business and operational efficiencies [34][35] Question: How is the company planning to allocate cash and manage capital expenditures? - The company plans to allocate 80% of free cash flow to share buybacks, with CapEx expected to be in the 1.5%-2% range of revenue [41][42] Question: What is the status of new customer acquisitions in the data center and AI market? - Management confirmed ongoing discussions with a third hyperscaler and positive momentum in expanding facilities to meet demand [46][47] Question: How is the company addressing supply chain constraints? - Management acknowledged supply chain constraints but expressed confidence in their ability to manage these challenges effectively [50][51]