Financial Data and Key Metrics Changes - Total net revenue for Q4 2026 rose 1% to $3.6 billion, with a 6% increase excluding the 53rd week and a 4% increase on a constant currency basis [26] - Comparable sales increased by 2%, with North America revenue flat and comparable sales down 2% [26] - Gross profit for Q4 was $2 billion, representing 54.9% of net revenue, a decrease of 550 basis points from the previous year [29] - Operating income was approximately $812 million, or 22.3% of net revenue, down from 28.9% in Q4 2024 [31] - Net income for the quarter was $587 million, or $5.01 per diluted share, compared to $6.14 for the same period last year [31] Business Line Data and Key Metrics Changes - Men's revenue increased by 3%, women's by 7%, and accessories and others grew by 4% [28] - In North America, new style penetration increased to approximately 35% [22] - The digital channel saw a revenue increase of 9%, contributing $1.9 billion to the top line [28] Market Data and Key Metrics Changes - In China Mainland, revenue increased by 28%, with comparable sales up 26% [26] - The rest of the world segment saw revenue growth of 12% and comparable sales increased by 5% [26] - North America revenue was flat, with a 3% increase in Canada and a 1% decrease in the U.S. [26] Company Strategy and Development Direction - The company is focused on returning to full price sales growth in North America through product newness and reducing markdowns [10] - Key initiatives include enhancing product design, improving speed to market, and maintaining high product quality [11][15] - The company is also investing in marketing strategies that engage guests and highlight new product offerings [55][72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the response to new product launches and activations, indicating a positive trend in full price sales [49][50] - The company anticipates revenue growth of 2%-4% for the full year 2026, with expectations for North America to decline by 1%-3% [34] - Management acknowledged the challenges posed by tariffs and markdowns but remains confident in the strategies being implemented [34][39] Other Important Information - The company announced the appointment of Chip Bergh to the board of directors, enhancing its retail and brand expertise [9] - Capital expenditures for Q4 were approximately $183 million, with plans for $725 million-$745 million for the full year 2026 [32][40] - The company repurchased approximately 1.4 million shares at an average price of $188 during the quarter [33] Q&A Session Summary Question: When will the product assortment be appropriate to deliver a return to an inflection in North America growth? - Management expects a meaningful inflection in full price sales in Q1, with a return to flat trends in Q2 and positive growth in the second half of the year [49] Question: Are you reassessing your marketing strategy to bring in new customers? - The company is looking at its marketing strategy, focusing on engaging guests and utilizing brand-appropriate influencers [55] Question: Can you elaborate on the newness percentage and what products are being sunsetting? - Newness penetration is moving from 23% in 2025 to 35% in 2026, with some SKU reductions to make room for new products [60] Question: How much of the CapEx is AI tech driven? - The company is investing in AI to enhance guest-facing initiatives and improve go-to-market strategies [61] Question: What is the expected revenue growth necessary to see operating margins return to expansion? - Management indicated that the majority of operating margin contraction is tied to transitory items, with expectations for improvement as revenue grows [77]

Financial Data and Key Metrics Changes - As of December 31, 2025, the company's cash and cash equivalents were $9.9 million, and in January 2026, it raised $22.3 million in gross proceeds from a public offering, extending its runway for operations [24][25] - The net loss for the fourth quarter of 2025 was $31.9 million, compared to $25.8 million in the same period the previous year [27] - Research and development expenses decreased to $9.4 million from $12.4 million year-over-year, while selling, general, and administrative expenses fell to $5.1 million from $6.8 million [25][26] Business Line Data and Key Metrics Changes - The rice program remains a core revenue generator, with seven rice customers representing a potential annual royalty opportunity of over $200 million [9][48] - The sustainable ingredients program has completed pre-commercial pilot runs for two biofragrance products, leading to the first customer payment in Q4 2025, with potential annual royalties estimated between $20 million and $40 million [15][16] Market Data and Key Metrics Changes - The company is targeting 5-7 million acres in the Americas for its rice traits, with potential expansion into India, which has approximately 120 million acres of rice cultivation [46][48] - The EU's recent political agreement on New Genomic Techniques legislation opens up approximately 100 million acres of greenfield opportunity in Europe, which has historically restricted GMO technologies [17][35] Company Strategy and Development Direction - The company is transitioning to a commercially driven model, focusing on gene editing as a core technology for agricultural innovation [4][5] - Cibus aims to build long-term shareholder value through a licensing and royalty framework tied to its gene editing capabilities, emphasizing ongoing relationships with seed companies [8][9] - The company is expanding its partnerships in Latin America and India, with plans for commercial launches in 2027 and 2030, respectively [10][12] Management's Comments on Operating Environment and Future Outlook - Management views 2026 as a pivotal year focused on execution and momentum, with expectations for significant advancements in rice commercialization and sustainable ingredients [29][30] - The regulatory landscape is evolving positively, with the EU's new legislation expected to catalyze commercial opportunities and partnerships [17][30] Other Important Information - The company has streamlined operations, reducing annual net cash usage to approximately $30 million or less in 2026, which supports its focus on near-term revenue [27][66] - The company has consolidated operations from its Oberlin facility into its San Diego headquarters, which is part of its cost-saving initiatives [27] Q&A Session Summary Question: Impact of EU NGT framework on CapEx for canola WOSR program - Management highlighted that the EU regulatory progress opens up significant opportunities for gene editing in Europe, particularly for winter oilseed rape, which is a major crop [34][35] Question: Next steps for rice commercialization in Latin America - Management outlined the process of editing elite genetics and the partnership with Interoc for commercialization in Ecuador and Colombia, with a focus on chemical registration and trait work [38][40] Question: Trend line for acres touched by technology - Management indicated a target of 5-7 million acres in the Americas, with potential for an additional 200 million acres in India by the end of the decade [46][48] Question: Maximum throughput for gene edits as a service - Management discussed the scalability of their gene editing platform, emphasizing the efficiency gained through automation and AI, which allows for managing multiple crops and lines [50][53] Question: Royalty rates for gene edits as a service - Management noted that the speed and scalability of their gene editing process allow for favorable negotiations on trait royalties, as customers can see value added quickly [56] Question: Scale of fragrance projects - Management mentioned the potential to work on approximately 17 fragrances, with plans to accelerate the process once the initial products are commercialized [57]

Financial Data and Key Metrics Changes - Revenue increased by 7% year-over-year to $334.6 million in Q4, with service revenue growing by 2% to $127.1 million and custodial revenue increasing by 12% to $161.4 million [22][24] - Net income rose by 89% to $49.7 million, with non-GAAP net income increasing by 33% to $81.8 million [8][24] - Adjusted EBITDA grew by 23% to $132.9 million, with an adjusted EBITDA margin expanding over 500 basis points to 40% in Q4 [24] Business Line Data and Key Metrics Changes - Total HSA assets increased by 14% to over $36 billion, with a record addition of 550,000 HSAs in Q4, bringing total accounts to 17.8 million [7][9] - Interchange revenue grew by 6% to $46.1 million, outpacing total account growth of 4% [22] - The annualized yield on HSA cash was 3.57% for the quarter, reflecting a shift towards enhanced rates [22] Market Data and Key Metrics Changes - The U.S. economy added only 181,000 jobs, yet the company added over 1 million new HSAs, indicating strong demand for HSAs [10] - The policy environment for HSAs is the most favorable it has been in two decades, with new legislation expanding HSA eligibility [19][20] Company Strategy and Development Direction - The company is focused on a flywheel strategy that enhances member engagement through saving, spending, and investing for healthcare [8][19] - Expansion into retail healthcare channels and direct HSA enrollment platforms is a key strategic initiative [11][19] - The company is investing in AI to improve member experience, operational efficiency, and personalization at scale [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that healthcare affordability pressures are driving the adoption of consumer-directed healthcare, which is expected to continue [19][65] - The company anticipates continued revenue growth and margin expansion in fiscal 2027, with raised guidance reflecting strong execution [29][30] Other Important Information - The company returned over $300 million to shareholders through share repurchase programs, reducing diluted shares outstanding by approximately 3% [8][25] - Fraud reimbursements were significantly reduced, with a run rate of 0.1 basis points for the quarter, well below the target of 1 basis point [12][23] Q&A Session Summary Question: Comments on gross margin expansion and future potential - Management highlighted significant gross margin expansion driven by reduced fraud costs and operational efficiencies through technology and AI [32][36] Question: Engagement with early users of Marketplace offerings - Early engagement metrics are positive, with strong retention rates among members participating in initial programs [38][41] Question: Conversion from ACA cohort and market opportunities - Management noted that the ACA cohort represents a 10% market expansion, with early signs of account growth beginning in January [46][50] Question: Plans for reinvestment in the business - The capital allocation philosophy remains consistent, focusing on organic growth, share repurchases, and debt reduction [52][53] Question: Trends in reallocating HSA dollars toward Marketplace offerings - Early trends show positive engagement with Marketplace offerings, which are expected to become a material part of revenue over time [57][59] Question: Impact of macroeconomic trends on guidance - Management indicated that healthcare affordability challenges are driving growth, counteracting macroeconomic headwinds [62][65]

Financial Data and Key Metrics Changes - Revenues for the year ended December 31, 2025, were $1.2 million, a decrease of $1.2 million or 50% compared to $2.4 million in 2024, primarily due to lower participant demand for clinical trials and reduced contract manufacturing services [10][11] - General and administrative expenses increased to approximately $12 million in 2025 from $10.3 million in 2024, reflecting a 17% increase mainly due to higher personnel costs and a one-time severance cost [11] - Research and development expenses rose to approximately $12 million in 2025 from $8.1 million in 2024, marking a 48% increase driven by personnel costs and CMC costs [12][13] - The net loss increased to approximately $22.7 million in 2025 from $16 million in 2024, a rise of 41% [13] - Cash and cash equivalents as of December 31, 2025, were $4.7 million, with approximately $1.4 million in working capital [14] Business Line Data and Key Metrics Changes - Clinical trial revenue for 2025 was $1 million, down from $1.4 million in 2024, while contract manufacturing revenue decreased from $0.5 million to $0.2 million [10][11] Company Strategy and Development Direction - The company is focused on securing financial resources and efficient capital allocation, having secured $15 million in new capital and the potential for an additional $15 million [2][3] - Strategic partnerships are being pursued to accelerate time to market and leverage resources from larger organizations [3][4] - The company aims to prepare for its first Biologics License Application (BLA) with the U.S. FDA following the results of the ELPIS-II clinical trial [3][4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position in the stem cell field and the potential for laromestrocel to address significant unmet medical needs [2][15] - The anticipated pivotal data for HLHS and the strengthening of the balance sheet are seen as critical milestones for future growth [17] Other Important Information - The HLHS program has been granted rare pediatric disease designation by the FDA, making it eligible for priority review vouchers (PRVs) upon BLA approval [6] - The company plans to pursue a sale of any PRV received for HLHS, with investors entitled to 50% of the proceeds [6] Q&A Session Summary Question: What are the commercial perspectives regarding scaled-up manufacturing for laromestrocel? - The company is prioritizing manufacturing and CMC, engaging with a CDMO for future manufacturing needs [21][22] Question: What non-dilutive sources of capital could be accessed for Alzheimer's disease and age-related frailty? - The company plans to seek licensing partners for both indications, with preliminary conversations already set up [23] Question: How soon can the BLA for HLHS be filed if data is positive? - The company is potentially eligible for a rolling submission and aims to initiate the regulatory process as quickly as possible after data readout [27][30] Question: What is the timeline for the pediatric dilated cardiomyopathy (PDCM) program? - The goal is to initiate the trial in 2027, with a focus on reducing heart transplant needs through a hierarchical composite endpoint [34][39] Question: What is the strategy for the recently patented use of laromestrocel in female sexual dysfunction? - The company sees this as a high unmet need and is likely to pursue partnerships for development rather than going it alone [45][49]

Financial Data and Key Metrics Changes - Revenue grew 7% year-over-year to $334.6 million in Q4 fiscal 2026, with net income increasing 89% to $49.7 million [21][7] - Non-GAAP net income rose 33% to $81.8 million, and non-GAAP net income per diluted share grew 38% to $0.95 [23][7] - Adjusted EBITDA increased 23% to $132.9 million, with an adjusted EBITDA margin expansion of over 500 basis points to 40% [23][6] Business Line Data and Key Metrics Changes - Service revenue grew 2% year-over-year to $127.1 million, while custodial revenue increased 12% to $161.4 million [21] - Interchange revenue grew 6% to $46.1 million, outpacing total account growth of 4% [21] - Total HSA assets increased 14% to over $36 billion, with a record addition of 550,000 HSAs in Q4 [8][6] Market Data and Key Metrics Changes - The company added over 1 million new HSAs in a year when the U.S. economy added just 181,000 jobs, indicating strong demand for HSAs [9][10] - The policy environment for HSAs is the most favorable it has been in two decades, with significant legislative changes expanding HSA eligibility [17][18] Company Strategy and Development Direction - The company is focused on a flywheel strategy that enhances member engagement through saving, spending, and investing for healthcare [7][10] - Expansion into retail healthcare channels and direct HSA enrollment platforms is a key strategic initiative [10][11] - The company is investing in AI to enhance member experience, operational efficiency, and personalization at scale [14][13] Management's Comments on Operating Environment and Future Outlook - Management highlighted that healthcare affordability pressures are driving the adoption of consumer-directed healthcare, which is expected to continue [11][62] - The company anticipates continued revenue growth and margin expansion in fiscal 2027, raising guidance based on strong execution and visibility [29][30] Other Important Information - The company returned over $300 million to shareholders through share repurchase programs in fiscal 2026, reducing diluted shares outstanding by approximately 3% [7][24] - The company has approximately $178 million remaining on its share purchase authorization [24] Q&A Session Summary Question: Comments on gross margin expansion and future potential - Management expressed pride in gross margin expansion driven by reduced fraud costs and operational efficiencies, with a focus on AI to enhance service delivery [32][36] Question: Engagement with early users of Marketplace offerings - Early engagement metrics are positive, with strong retention rates among members participating in initial Marketplace programs [38][41] Question: Conversion from ACA cohort and market expansion - Management noted that the ACA expansion represents a 10% market increase, with early signs of account growth starting in January [46][47] Question: Plans for reinvestment in the business - The capital allocation strategy remains focused on organic growth, share repurchases, and debt reduction, with no significant changes anticipated [51][52] Question: Trends in member spending on Marketplace offerings - Early trends indicate positive engagement with Marketplace offerings, which are expected to contribute to revenue growth over time [56][58] Question: Impact of macroeconomic trends on guidance - Management acknowledged macroeconomic challenges but emphasized that healthcare affordability is driving HSA adoption, which supports growth [60][62]

Financial Data and Key Metrics Changes - ClearPoint Neuro reported total revenues of $37 million for the year ended December 31, 2025, an increase from $31.4 million in 2024, with $1.2 million attributed to the acquisition of IRRAS Holdings, Inc. [10] - Gross margin for 2025 was 61%, consistent with 2024 [12] - Net cash flows used in operating activities increased to $23.9 million in 2025, up from $8.9 million in 2024 [19] Business Line Data and Key Metrics Changes - Biologics and Drug Delivery revenue increased by 10% to $19 million in 2025, up from $17.3 million in 2024, driven by increased product sales [11] - Neurosurgery Navigation revenue grew to $14.8 million in 2025, including $1.2 million from IRRAflow, primarily due to an expanded customer base and the market release of new products [11] - Capital Equipment and Software revenue was $3.1 million for 2025, showing a slight decrease compared to previous periods [12] Market Data and Key Metrics Changes - The company expects revenues for 2026 to be in the range of $52 million to $56 million, reflecting factors such as FDA communications regarding rare diseases and integration efforts from the IRRAS acquisition [8] - The company is targeting a $1 billion market opportunity across four product segments, with expectations for double-digit growth in each segment in 2026 [6][21] Company Strategy and Development Direction - ClearPoint Neuro is focused on developing a complete neuro ecosystem for minimally invasive treatments, including cell and gene therapies [4] - The company has entered two phases of growth strategy: "Fast Forward" to penetrate existing markets and "Essential Everywhere" to build a new market for commercial cell and gene therapy delivery [6][7] - The company aims to achieve 20% market share in a combined $1 billion market opportunity, targeting $200 million in annual revenue [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position, highlighting a strong foundation built over the past five years with over $100 million invested [5] - The management noted that the company is well-positioned to support biopharma partners in clinical trials and anticipates significant revenue potential from expedited review programs [25] - Management acknowledged challenges related to FDA communications on rare diseases but emphasized a focus on larger patient populations for growth [40][42] Other Important Information - The company has over 60 active biopharma partners and is involved in more than 25 active clinical trials [5] - ClearPoint Neuro's cash and cash equivalents totaled $45.9 million at the end of 2025, up from $20.1 million in 2024, due to proceeds from notes payable and stock offerings [18] Q&A Session Summary Question: Can you elaborate on the 2026 guidance and the impact of recent FDA communications? - Management indicated that guidance was tightened due to more rigorous FDA requirements for rare diseases and the need to reassess integration priorities with IRRAS [38][40] Question: How should we think about organic growth versus growth from IRRAS? - Management expects balanced growth from both organic and IRRAS contributions, with all segments projected to grow in double digits [45][46] Question: What is the pathway from current revenue to $200 million? - Management anticipates a growth rate of 15%-20% as they capture market share across segments, with potential for significant revenue from large GLP studies [49][50] Question: Can you provide details on new partners in expedited review pathways? - Management confirmed new indications and partners, particularly in Parkinson's disease and drug-resistant epilepsy, enhancing confidence in future revenue [60] Question: What is the timeline for expanding into neuro-oncology with Prism? - Management indicated that the timeline for expansion will depend on the strength of their commercial team and ongoing clinical trials [62]

Financial Data and Key Metrics Changes - Total net revenue for Q4 2026 rose 1% to $3.6 billion, with a 6% increase excluding the 53rd week and a 4% increase on a constant currency basis [26] - Comparable sales increased by 2%, with North America revenue flat and comparable sales down 2% [26] - Gross profit for Q4 was $2 billion, representing 54.9% of net revenue, a decrease from 60.4% in Q4 2024, primarily due to a decline in overall product margin and higher markdowns [29] - Operating income was approximately $812 million, or 22.3% of net revenue, down from 28.9% in Q4 2024 [31] - Net income for the quarter was $587 million, or $5.01 per diluted share, compared to $6.14 per diluted share in Q4 2024 [31] Business Line Data and Key Metrics Changes - Men's revenue increased by 3%, women's revenue increased by 7%, and accessories and others grew by 4% [28] - In North America, new style penetration increased to approximately 35% with a focus on new product introductions [20][59] - The digital channel saw a revenue increase of 9%, contributing $1.9 billion to the top line [28] Market Data and Key Metrics Changes - In China Mainland, revenue increased by 28% with comparable sales up 26%, driven by strong guest response to product assortment [26] - The rest of the world segment saw revenue growth of 12% with comparable sales increasing by 5% [26] - The company opened 15 net new stores during the quarter, bringing the total to 811 stores globally, with square footage increasing by 11% [27] Company Strategy and Development Direction - The company is focused on returning to full price sales growth in North America through product newness, reducing markdowns, and inventory rebalancing [10] - The action plan includes three components: product creation, product activation, and enterprise enablement, aimed at strengthening the brand and re-accelerating growth [10][18] - The company is enhancing guest experience in stores and online, with a new design playbook and activity-based merchandising [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential for Lululemon, highlighting positive guest responses to new product launches and activations [46] - The company anticipates revenue growth of 2%-4% for 2026, with expectations for North America to decline by 1%-3% but improvements in full price sales anticipated [34] - Tariff impacts are expected to be significant, with gross tariff costs anticipated at approximately $380 million for 2026 [34] Other Important Information - Chip Bergh was welcomed to the board of directors, bringing extensive retail and brand expertise [8] - The company plans to open approximately 40-45 net new company-operated stores in 2026, with a focus on international markets, particularly China [36] Q&A Session Summary Question: When do you think the product assortment will be appropriate to deliver a return to an inflection in North America growth? - Management expects a meaningful inflection in full price sales in Q1, with a return to flat trends in Q2 and positive growth in the second half of the year [49] Question: Are you doing any reassessing of your marketing to bring in new customers? - The company is looking at its marketing strategy, focusing on engaging guests and utilizing brand-appropriate influencers [55] Question: Can you talk about the 35% newness and what products are being sunsetted? - The newness penetration is moving from 23% to 35%, focusing on truly new products rather than just new colorways, with some SKU reductions being implemented [60] Question: How much of the CapEx is AI tech driven? - The company is investing in AI to enhance guest-facing capabilities and improve go-to-market strategies [61] Question: What is the expected revenue growth necessary to see operating margins return to expansion? - Management indicated that the majority of operating margin contraction is tied to transitory items, with expectations for improvement as revenue grows [77]

Financial Data and Key Metrics Changes - For the full year 2025, total net sales increased by 16.8%, driven by new store expansion and comparable sales growth of 7.7% [5][18] - Adjusted EBITDA grew by 24.1%, resulting in an adjusted EBITDA margin of 10.2% [18][20] - In the fourth quarter, net revenue increased by 8.2% to $648.8 million, with adjusted comparable sales increasing by 2.8% [19][20] - Net income grew over 6% to $41 million compared to $38.6 million last year [21] Business Line Data and Key Metrics Changes - The company opened 20 new stores in 2025, ending the year with a total of 209 locations, representing an 11% growth [11][19] - The average store manager tenure is over seven years, indicating strong internal promotion and employee retention [4] Market Data and Key Metrics Changes - The company entered two new markets in 2025, North Carolina and Vermont, with strong performance in these locations [19][11] - Aided brand awareness increased to 45%, with approximately 70% in the top 10 DMAs [9] Company Strategy and Development Direction - The company focuses on three primary strategies for long-term growth: expanding the store base, driving comparable sales, and leveraging scale for efficiency and margin expansion [10][11] - The company aims to open approximately 20 new stores in 2026, with a long-term goal of over 500 stores by 2035 [12][30] - The merchandising strategy emphasizes a narrow and deep assortment, maintaining pricing approximately 10% below competitors [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted a strong history of market share gains [16][29] - The company anticipates comparable sales growth of approximately 1.0%-1.5% for the first quarter, despite weather-related impacts [23][24] - Management remains optimistic about the underlying momentum across customer cohorts, particularly among higher-income households [10][59] Other Important Information - The company completed its IPO in February, resulting in $302 million of net primary proceeds, which were used to prepay a $350 million term loan, resulting in a debt-free balance sheet [22] - The company expects to incur net interest expense of approximately $8 million for the year [28] Q&A Session All Questions and Answers Question: Impact of weather on fiscal year outlook - The wider range in the fiscal year outlook is primarily due to weather-related impacts in the first quarter, with expectations that the remaining quarters will align with long-term algorithms [32][33] Question: Nature of demand recovery post-weather events - The company typically does not recover 100% of lost demand from weather events, but expects a high percentage of it [35][36] Question: Profitability outlook amidst macroeconomic factors - The profitability outlook has been adjusted to account for increased marketing spend and current tariff impacts, with a focus on maintaining gross margins [47][51] Question: Sensitivity to economic shocks in new markets - There has been no significant sensitivity to recent economic shocks in new markets, with positive trends observed across all income demographics [59] Question: E-commerce trends and future growth - E-commerce is a vital channel for the company, with ongoing improvements to create a seamless omnichannel experience for customers [90]

Financial Data and Key Metrics Changes - For the full year 2025, total net sales increased by 16.8%, driven by new store expansion and comparable sales growth of 7.7% [5][18] - Adjusted EBITDA grew by 24.1%, resulting in an adjusted EBITDA margin of 10.2% [18][19] - In the fourth quarter, net revenue increased by 8.2% to $648.8 million, with adjusted comparable sales increasing by 2.8% [19][20] - Net income grew over 6% to $41 million compared to $38.6 million last year [21] Business Line Data and Key Metrics Changes - The company opened 20 new stores in 2025, ending the year with a total of 209 locations, representing an 11% growth [11][19] - Comparable sales performance was primarily driven by growth in conversion and higher average order values in the retail channel, as well as increased e-commerce traffic [20] Market Data and Key Metrics Changes - The company entered two new markets in 2025, North Carolina and Vermont, with strong performance reported in these locations [19][21] - Aided brand awareness increased to 45%, with approximately 70% in the top 10 DMAs [9] Company Strategy and Development Direction - The company aims to grow its store base across new and existing markets, drive comparable sales, and leverage scale for efficiency and margin expansion [10][12] - Plans to open approximately 20 new stores in 2026, with a long-term goal of over 500 stores by 2035 [12][26] - The company is focused on enhancing its omnichannel capabilities and customer experience through digital transformation initiatives [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted a strong history of market share gains [16][29] - The first quarter of 2026 is expected to deliver comparable sales growth of approximately 1.0%-1.5%, with a recovery from weather-related sales losses anticipated [23][24] - The outlook for the full year includes net revenue expectations of $2.6 billion to $2.625 billion, supported by comparable sales growth of 1.5%-2.5% [24][25] Other Important Information - The company successfully completed its IPO, resulting in $302 million of net primary proceeds, which were used to prepay all of its $350 million term loan [22] - The company plans to spend approximately $110 million-$115 million on capital expenditures focused on store growth and supporting infrastructure [26][27] Q&A Session Summary Question: Impact of weather on fiscal year outlook - Management indicated that the wider range in EBITDA guidance is primarily due to weather-related impacts in the first quarter, affecting store traffic and sales [33][34] Question: Recovery of demand post-weather events - Management noted that while there is typically a partial recovery of demand after weather events, they expect to see a high percentage of lost sales recaptured [35][36] Question: Profitability outlook amidst macroeconomic factors - Management expressed confidence in their ability to manage profitability despite external factors, citing a strong playbook for navigating challenges [49][50] Question: Trends in e-commerce and omnichannel sales - Management highlighted the importance of e-commerce as a growing channel, with over 70% of consumers engaging across multiple channels [94]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $153.3 million, a significant increase from $33.5 million in Q4 2024, reflecting strong project execution and initial contributions from the Asset Vault portfolio [39] - Full year 2025 revenue reached $203.7 million, representing over 340% growth year-over-year, driven by energy storage solutions in Australia and the U.S. [39] - GAAP gross profit for Q4 was $31.6 million, compared to $2.6 million in the prior year, resulting in a gross margin of 20.6% versus 7.8% [40] - Full year gross profit was $48 million, improving nearly eight-fold from the prior year, with a gross margin of 23.6%, up 10 percentage points from 13.4% [40] - Adjusted EBITDA turned positive at $9.8 million in Q4, compared to a loss of $13.4 million in the prior year [40] - Total cash as of December 31, 2025, was $103.4 million, up more than three-fold versus the prior year [41] Business Line Data and Key Metrics Changes - The contract backlog increased to $1.3 billion, representing 3x growth year-over-year and 42% sequential growth [43] - Contracted megawatts reached 540 MW, which includes contributions from AI digital infrastructure projects [9][39] - The Asset Vault platform is expected to generate $10 million in annualized adjusted EBITDA from the operational assets [47] Market Data and Key Metrics Changes - The company is actively progressing opportunities valued at over $3 billion associated with 1.8 GW of capacity [46] - The Australian development partner was awarded a 14-year long-term energy service agreement for the Ebor battery project [44] Company Strategy and Development Direction - The company is transitioning to an Asset Vault model, focusing on owning and operating energy storage projects rather than just delivering technology [16][25] - The strategy aims to create predictable, recurring, and high-margin infrastructure cash flows while leveraging synergies with the EPC integration business [47] - The company is targeting to scale to over 3 GW by 2030, with a projected EBITDA of $1.5 billion+ [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in liquidity and the ability to execute the growth strategy, highlighting the importance of cash for funding large projects [12][15] - The company faced challenges in 2025 due to tariffs and market volatility but managed to achieve its original revenue guidance [23] - The outlook for 2026 includes revenue guidance of $225 million-$300 million, reflecting growth from third-party projects and contributions from the Asset Vault [48] Other Important Information - The company completed a $300 million preferred equity agreement to support the Asset Vault platform [42] - The company is focusing on sustainability, achieving recognition in the top 2% for corporate sustainability assessments [28] Q&A Session Summary Question: Can you discuss the evolution of the EMS platform? - Management highlighted significant investments in software to optimize operations and asset management, allowing for flexibility in technology choices [55][56] Question: What are the market demands for fuel cells in microgrids? - The company is exploring various technologies to optimize data center operations, including hybrid systems that combine renewable and storage assets [62] Question: Can you provide details on project financing for SOSA and Stoney Creek? - The SOSA project is expected to cost $125 million-$150 million, while Stoney Creek is quoted at AUD 350 million, with financing anticipated in the second half of 2026 [75][76] Question: How much of the revenue comes from third-party deployments versus Asset Vault? - The operational assets within Asset Vault are expected to contribute upwards of $10 million in recurring EBITDA, with a small portion of 2025 revenue coming from these assets [78][80] Question: Does the contract backlog include the latest project signed after December? - Yes, the backlog includes the fifth project, with additional upside associated with the fourth project [83]