Financial Data and Key Metrics Changes - In Q4 2025, Flotek achieved the highest quarterly and annual revenues since 2017, with a 33% increase in total company revenues compared to the same quarter last year [6][24] - Gross profit increased by 24% year-over-year for Q4 and 52% for the full year 2025, with adjusted EBITDA growing over 123% year-over-year [6][26] - Net income for Q4 totaled $3 million, or $0.08 per diluted share, compared to $4.4 million, or $0.14 per diluted share in the prior year quarter [28] Business Line Data and Key Metrics Changes - The Data Analytics segment achieved its highest ever quarterly and annual revenue, accounting for 48% of total company gross profit in Q4 2025, up from 8% in the prior year [6][24] - Service revenues in the Data Analytics segment increased by 381% in Q4 2025 compared to Q4 2024, with gross profit rising to 73% [10][18] - The Chemistry Technology segment saw a 25% increase in total revenue for the full year 2025 compared to 2024, despite a 24% decline in the average North American frac count [19] Market Data and Key Metrics Changes - North American operators maintained a cautious posture due to geopolitical and macroeconomic challenges, impacting overall market dynamics [4] - The company anticipates a rebalance of supply and demand in the energy sector, driven by declining production rates and the need for substantial investment to maintain production levels [9] Company Strategy and Development Direction - Flotek is transitioning to a data-as-a-service business model, focusing on innovative real-time data and chemistry solutions to drive growth and enhance shareholder returns [5][6] - The company aims to expand its total addressable market through its industrial pivot and has successfully entered the power services sector with the onboarding of PowerTech assets [7][19] - Flotek is positioning itself as a high-growth technology leader in the energy and infrastructure sectors, leveraging data analytics and advanced chemistry solutions [20][33] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding hydrocarbon demand growth in the medium to long term, despite near-term volatility due to geopolitical tensions [8][9] - The company is focused on delivering differentiated chemistry and data services to navigate macroeconomic challenges and drive sustained profitable growth [20][33] Other Important Information - Flotek completed the onboarding of PowerTech assets, which are expected to contribute significantly to recurring revenue growth in 2026 [7][26] - The company has a strong backlog of recurring revenue, providing visibility into future cash flows and margin expansion [18][33] Q&A Session Summary Question: Current pipeline of opportunities in power services - Management highlighted advancements in PowerTech, with seven new customers and ongoing operations in the field, indicating a strong pipeline for future contracts [39][41] Question: Business model for utility infrastructure deal - Management confirmed that the utility infrastructure deal is repeatable and aligns with their strengths in monitoring and conditioning power generation equipment [44] Question: Clarification on PowerTech contract revenue flow - Management explained that initial revenue from the contract is expected to start in Q2, with potential for extension beyond the initial six-month term [48][50] Question: Communication with engine manufacturers - Management discussed ongoing projects with multiple OEMs, focusing on optimizing engine performance through real-time data integration [56][60] Question: Impact of Middle East conflicts on operations - Management reported stable operations in KSA, with alternative delivery methods being utilized to mitigate supply chain disruptions [80][84]

Financial Data and Key Metrics Changes - SNDL achieved record full-year net revenue of CAD 946 million, representing a growth of 2.8% year-over-year, supported by 11% growth from combined cannabis segments, partially offset by a 2.8% decline in liquor [9][10] - Free cash flow for 2025 reached CAD 18 million, more than doubling the previous year's result, reflecting continued operational improvements and disciplined working capital management [3][10] - Gross profit for Q4 was CAD 70.2 million, marking a new quarterly record, with a gross margin increase of 110 basis points to 27.8% [8][10] Business Line Data and Key Metrics Changes - The cannabis retail segment achieved a full-year revenue record of CAD 330 million, representing 6% growth, supported by same-store sales growth and new store openings [17] - The liquor segment experienced a decline in net revenue of approximately 3% in both Q4 and full year, driven by broader market conditions, but managed to maintain or expand gross profit through productivity improvements [15][16] - Cannabis operations delivered record net revenue of CAD 144.7 million for the full year, representing growth of 32%, supported by the Indiva acquisition and international sales growth [18] Market Data and Key Metrics Changes - The market slowdown in the second half of 2025 affected both liquor and cannabis segments, with the cannabis market experiencing a decline in Q4, which was a newer development [11][12] - Both SunStream and liquor retail segments gained 20 basis points of market share year-over-year, indicating resilience despite market challenges [21] Company Strategy and Development Direction - The company is focused on growth, profitability, and people, with significant capital expenditures directed towards new store openings and operational efficiencies [21][22] - SNDL is positioned to capitalize on industry consolidation opportunities as less efficient operators face increased pressure [11][21] - The company is actively pursuing both organic growth through new store openings and potential M&A opportunities to enhance its market position [30][34] Management's Comments on Operating Environment and Future Outlook - Management noted that the market is experiencing saturation, particularly in retail, leading to declines in traffic and top-line revenue [28][29] - The company remains committed to sustaining its upward trajectory in profitability while addressing market headwinds through disciplined execution [11][12] - Management expressed confidence in the company's ability to unlock additional value in the coming years, supported by a strong balance sheet and cash position [24] Other Important Information - The company completed the first stage of the acquisition of Cost Cannabis retail stores, incorporating five locations in Alberta and Saskatchewan [5] - SNDL has a strong cash position with over CAD 250 million in unrestricted cash at the end of 2025, enabling disciplined capital deployment [5] Q&A Session Summary Question: What is behind the slowdown in same-store sales in the retail segment? - Management attributed the slowdown to market saturation, competitive pressures, and a shift in focus towards profitability and mix improvements [26][28] Question: When is the acquisition of the 1CM Inc. stores expected to close? - Management expects to finalize the acquisition review with the AGCO and report back to shareholders in Q2 [30][31] Question: How does the company view the liquor retail market outlook for 2026? - Management indicated that while there are structural challenges, certain segments like Wine and Beyond are showing strength, and they are focusing investments there [39][41] Question: What is the status of the EU GMP certification and international growth outlook? - Management expects to complete the EU GMP certification by summer and anticipates material growth in international business, which is a top priority for future capital deployment [35][36] Question: What is the outlook for the U.S. assets, particularly regarding Parallel and Skymint? - Management noted that they are nearing resolution on the foreclosure process for Parallel and expect to finalize it in Q2, indicating a path forward for U.S. assets [46][47]

Financial Data and Key Metrics Changes - Consolidated net sales increased by 28.1% to $17.22 billion, driven by a $3.11 billion sales contribution from Foot Locker and a 4.5% comp increase for DICK'S business [19][20] - Non-GAAP earnings per diluted share for the full year were $13.20, which included results from Foot Locker for just over 20 weeks [20][21] - Q4 consolidated net sales increased by 59.9% to $6.23 billion, with a 3.1% comp increase for DICK'S business [22][23] - Non-GAAP earnings per diluted share for Q4 were $3.45, including $4.05 for DICK'S business, up 11.9% from the previous year [26][27] Business Line Data and Key Metrics Changes - DICK'S business delivered record sales of $14.1 billion, with comps increasing by 4.5% and achieving a double-digit operating margin of 11.1% [12][17] - Q4 comps for DICK'S business increased by 3.1%, building on last year's 6.6% increase, resulting in a two-year comp stack of nearly 10% [12][13] - Foot Locker's pro forma comp sales in Q4 decreased by 3.4% [23] Market Data and Key Metrics Changes - DICK'S business saw growth across all key categories: footwear, apparel, and hard lines [13][19] - The company anticipates Foot Locker to deliver growth and comp sales of between 1%-3% in 2026 [9][32] Company Strategy and Development Direction - The company is focused on the transformational opportunity with Foot Locker, emphasizing the Fast Break initiative to improve store performance [4][5] - DICK'S plans to open approximately 14 House of Sport locations and 22 Fieldhouse locations in 2026, continuing to reposition its real estate portfolio [15][33] - The company aims to leverage its strong relationships with national brand partners and emerging brands to drive growth [14][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying momentum of the DICK'S business, citing strong consumer engagement and excitement around upcoming sports events [44][45] - The company expects continued comp growth for DICK'S business in the range of 2%-4% for 2026, with operating margins projected at approximately 11.1% [17][31] - Management acknowledged the dynamic macroeconomic environment but remains optimistic about the long-term potential of both DICK'S and Foot Locker [30][32] Other Important Information - The company completed a significant inventory cleanup, positioning Foot Locker for improved sales and margins moving forward [6][54] - Total pre-tax charges related to the Foot Locker acquisition are expected to be between $500 million and $750 million, with $150 million anticipated in 2026 [29] Q&A Session Summary Question: What gives confidence in the underlying momentum for DICK'S business? - Management highlighted strong comp growth and positive performance across all key categories, with consumers responding well to innovative products [44][45] Question: How is the cleaning out of the garage progressing at Foot Locker? - Management confirmed that the inventory cleanup is complete, resulting in a cleaner inventory that should bode well for future margins and sales [54][55] Question: What is the outlook for innovation in 2026? - Management noted growth across both strategic partners and emerging brands, with excitement around new product launches in running and basketball categories [58][59] Question: How does the company view the traffic and transaction numbers? - Management indicated that while traffic was negative in Q4, the two-year stack was positive, and they are not concerned about future traffic or transactions [93] Question: What are the expectations for synergies from the Foot Locker acquisition? - Management reiterated expectations for synergies to be between $100 million and $225 million over the medium term, with confidence in achieving these targets [97]

Financial Data and Key Metrics Changes - In Q4 2025, the company generated net revenues of $6.6 million and EBITDA of $1.5 million, reflecting a decline compared to the same period last year due to a reduction in fleet and softer market conditions [3][13] - For the full year 2025, net revenue totaled $37.8 million, adjusted EBITDA was $12.9 million, and the net loss reached $6.2 million [13] - Daily operating expenses were successfully reduced to approximately $6,300 per day [14] - The cash position at year-end stood at $14.6 million, with total assets amounting to $138 million and stockholders' equity at $56 million [14][15] Business Line Data and Key Metrics Changes - The company executed strategic initiatives to enhance earnings, including divesting lower-returning assets and redeploying proceeds into higher-earning Capesize exposure [4] - The fleet utilization remained high at 97.6%, with a fourth quarter TCE of $14,129, consistent with the same period in 2024 [6] Market Data and Key Metrics Changes - The Baltic Kamsarmax Index averaged about $14,800 in early 2026, up from $9,600 during the same period in 2025, while the Baltic Capesize Index averaged about $23,000, compared to $13,000 last year [9] - The Panamax market showed strong growth in grain and minor bulk ton-miles, while coal trade has moderated [10] Company Strategy and Development Direction - The company is focused on disciplined capital reallocation, divesting lower-returning assets, and enhancing cash flow visibility through fixed-rate charters [4][5] - The acquisition of two Capesize vessels is expected to produce meaningful returns on capital, with a total investment of approximately $62 million [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining competitive distributions while pursuing growth opportunities, despite the geopolitical crisis adding uncertainty to the global outlook [4][10] - The company anticipates a daily time charter equivalent of approximately $15,230 for Q1 2026, with 92% of available days already fixed [7] Other Important Information - The company declared its thirteenth consecutive quarterly dividend, reflecting a commitment to capital returns [3] - The company has engaged in extensive share repurchases as part of its capital returns strategy [19] Q&A Session Summary Question: Regarding the dividend policy and future payouts - Management intends to establish a clear formula for dividends, emphasizing a commitment to generous shareholder returns [22] Question: Details on the acquisition of the Squireship - The fixed rate for the Squireship is approximately $28,000, with a financing strategy aiming for a leverage ratio of around 60%-65% [24] Question: Implications of coal trade flows due to geopolitical disruptions - Management expects increased coal trade as a response to disruptions in LNG trade, particularly in regions reliant on Persian Gulf natural gas [25][26] Question: Clarification on the portion of the global fleet in the Gulf area - Approximately 2% of the global fleet is in the general area, affecting tonnage availability and market dynamics [27]

Financial Data and Key Metrics Changes - For Q4 2025, the company generated distributable earnings of $0.27 per share, impacted by a loan foreclosure which reduced earnings by approximately $0.03 per share [7][16] - For the full year 2025, net interest income was $21.6 million, with distributable earnings of $15.2 million or $1.19 per share [17] - The company ended Q4 2025 with total assets of $310.2 million and total shareholder equity of $182 million, with a book value of $13.56 per share [19] Business Line Data and Key Metrics Changes - The company focused on providing loans primarily in the Southern United States, with a portfolio construction emphasizing residential loans, mainly senior secured and floating rate [5][6] - In Q4 2025, SUNS closed on $56 million of commitments, including loans for a small-bay industrial development and a senior bridge loan for a retail property [12] - The TCG real estate platform closed on $368 million of loans in FY 2025, with SUNS committing $247 million and funding $224 million [6] Market Data and Key Metrics Changes - The commercial real estate market showed a transition in 2025, with limited transaction volume in early 2025, improving in the second half due to the Federal Reserve's rate easing [5] - The company noted a bifurcation in the lending market, with lenders focused on multifamily and industrial assets, while SUNS targeted transitional business plans requiring bespoke solutions [10][11] Company Strategy and Development Direction - The company aims to capitalize on transitional real estate business plans and maintain a focus on high-quality real estate projects [5][12] - The strategy includes a commitment to structured complexity and asset-level expertise to generate superior unlevered returns [11] - The company plans to hire a premier broker to market the Thompson Hotel asset, indicating a proactive approach to asset management [14][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the opportunity set ahead, despite market volatility creating uncertainty [15][23] - The company anticipates that the current volatility will create opportunities for dislocation in the market, allowing for potential acquisitions [23][48] - Management acknowledged the need to resolve issues related to the Thompson Hotel to restore earnings momentum and expand the borrowing base [41][42] Other Important Information - The board declared a $0.30 dividend per share for Q1 2026, indicating a commitment to maintaining dividends consistent with earnings power [8][19] - The revolving credit facility was increased to $165 million, with potential expansion to $200 million, which could enhance the company's financial flexibility [9] Q&A Session Summary Question: How does the recent market volatility affect investment opportunities? - Management noted that volatility has created ups and downs, but it has also opened opportunities for transitional deals that the company focuses on [21][22] Question: What caused the decrease in the loan pipeline from $1.7 billion to $652 million? - Management explained that the decrease reflects a more discerning approach to transactions, focusing on long-term durability [28] Question: Can you provide more details on the foreclosure of the San Antonio asset? - Management indicated that the asset faced challenges due to market conditions and management issues, but they believe in its medium to long-term prospects [30][31] Question: How does the company plan to cover the dividend given the earnings? - Management stated that the board is confident in covering the dividend over the next 6-12 months [32] Question: What are the expectations for the increased credit facility? - Management expressed that resolving the current asset issues will allow for more capital deployment and expand the borrowing base [40][42] Question: How has capital deployment trended compared to previous expectations? - Management acknowledged that while there were significant opportunities initially, market conditions have led to a more selective approach in capital deployment [43][46]

Financial Data and Key Metrics Changes - Consolidated net revenue for Q4 2025 was approximately $97.8 million, down 16.5% year-over-year [8] - Adjusted EBITDA for the fourth quarter was $15.6 million, a decrease of 41.8% [14] - Net loss for Q4 2025 was approximately $54.4 million or $12.24 per share, compared to a net loss of $35.7 million or $7.81 per share for Q4 2024 [19][20] Business Line Data and Key Metrics Changes - Net revenue for the radio broadcasting segment was $35.1 million, a decrease of 26.5% year-over-year [8] - Reach Media segment net revenue was $13.8 million, up 43.9% from the prior year, primarily due to event revenue from the Fantastic Voyage cruise [10] - Digital segment net revenues were down 19.6% to $14.7 million, driven by decreased direct revenue streams [10] - Cable television segment revenue was approximately $34.9 million, down 16.8%, with advertising revenue down 21.8% [11] Market Data and Key Metrics Changes - Local ad sales were down 19% against markets that were down 12.6%, while national ad sales were down 40.1% against a market decline of 29.2% [9] - The largest ad category for the quarter was services, which increased by 18.1%, primarily due to legal services [9] Company Strategy and Development Direction - The company completed a significant capital markets transaction, repurchasing a substantial amount of its 2028 notes at a discount and extending maturities to 2031 [6] - Focus remains on deleveraging the business and taking advantage of opportunities related to deregulation in the radio business [6][7] Management's Comments on Operating Environment and Future Outlook - The first quarter of 2026 started slower than expected, with current radio pacings down about 5% [5] - Management remains positive about operational changes and upcoming political events that may impact revenue [5] Other Important Information - The company recorded $55.3 million in non-cash impairment charges, with significant amounts attributed to the cable television segment [18] - Capital expenditures for the quarter were approximately $3.2 million [19] Q&A Session Summary - No questions were asked during the Q&A session, and the call concluded without further inquiries [21][22]

Financial Data and Key Metrics Changes - In Q4 2025, the company generated revenues of approximately $157 million, consistent with guidance, but decreased due to seasonality and budget exhaustion [10] - Adjusted EBITDA for Q4 was approximately $23 million, the highest quarterly adjusted EBITDA of the year, with an adjusted EBITDA margin of about 14% [10][11] - For the full year, corporate adjusted EBITDA loss was around $26 million, reflecting a structural rightsizing of G&A and a 12% decline in total headcount year-over-year [12] Business Line Data and Key Metrics Changes - Northeast MidCon revenue was essentially flat at $69.6 million, with an adjusted EBITDA margin expansion to 25.3% driven by gas-directed activity [11] - Dry gas revenue in the Northeast MidCon increased 5.3% quarter-over-quarter and 44% year-over-year [7][11] - Rockies revenue declined to $46.3 million, down approximately 9% sequentially, primarily due to weather and customer budget exhaustion [11] - Southwest revenue decreased about 10% to $50.9 million, attributed to budget exhaustion and reduced oil-directed activity [11] Market Data and Key Metrics Changes - The company noted a growing share of gas-levered revenue, with dry gas exposure increasing as a share of the portfolio [6][7] - The overall market environment remains challenging, with the Northeast MidCon and gas-focused basins showing momentum, while oil-directed basins like the Permian are experiencing a downturn [18][19] Company Strategy and Development Direction - The company continues to focus on higher margin, technically differentiated work while maintaining cost discipline and strategically deploying capital [6] - The capital allocation strategy for 2026 includes gross capital expenditures of approximately $40 million, down from $49 million in 2025, with a focus on maintenance CapEx [12][20] - The company is positioned to benefit from industry consolidation and capacity rationalization, as smaller competitors exit the market [20] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive but measured outlook for 2026, expecting Q1 to be the low point for the year, with gradual improvement anticipated in gas-directed basins [18][19] - The company is monitoring the impact of the Middle East conflict on market conditions and rig counts, noting that operators are currently taking a wait-and-see approach [42][46] Other Important Information - The company ended Q4 with total debt of $258.3 million and available liquidity of approximately $56 million [13] - A proactive amendment to the indenture was made to provide covenant relief, allowing for a net leverage ratio of 4.5 times through March 31, 2027 [16] Q&A Session Summary Question: Strength in Northeast MidCon - Management noted a 6% increase in rig count across the Northeast MidCon segment and attributed the strength to sustained completion programs and robust demand [24][26] Question: Margin Improvement Factors - The margin improvement was attributed to a combination of product line mix, efficiencies, and cost reductions, with a focus on absorbing fixed costs [28][30] Question: CapEx and Cash Flow Outlook - The company is targeting gross capital spending of $40 million for 2026, reflecting a prudent approach given current market conditions [34][35] Question: Impact of Middle East Conflict - Management indicated that historical patterns suggest a 60-90 day lag in activity changes post-commodity price movements, and they are closely monitoring the situation [42][46] Question: U.S. Coiled Tubing Market - Management acknowledged attrition in the coiled tubing market and noted that while some players have exited, the market is currently balanced with sufficient supply [66][67]

Financial Data and Key Metrics Changes - Retail volume declined by 22.1% year-over-year, attributed to capital structure constraints rather than demand [7][25] - Total revenue decreased to $286.8 million, down 12% year-over-year, while average retail sales price increased by 7.1% to $20,634 [26] - Interest income rose to $64.2 million, up 3.1% year-over-year, despite lower sales volume [27] - Loss per share for the quarter was $9.25 on a GAAP basis, with an adjusted loss per share of $1.53 [56] Business Line Data and Key Metrics Changes - Retail units sold decreased to 10,275 units, driven by lower inventory availability, a smaller footprint, and Winter Storm Fern [25][26] - Gross profit per retail unit sold increased by 8.8%, indicating improved cost discipline [27] - SG&A expenses totaled $51.5 million, or 23.1% of reported sales, with adjusted SG&A at $48.7 million or 21.9% of sales [36] Market Data and Key Metrics Changes - Website traffic increased by 4% year-over-year, indicating sustained customer interest [9] - The subprime auto capital markets have been operating in a more measured environment since last fall, following disruptions in the industry [10][11] Company Strategy and Development Direction - The company is focused on completing its capital structure transformation, including securing a revolving warehouse facility to enhance inventory purchasing capabilities [18][19] - Operational improvements include executing a cost control plan that resulted in the consolidation of 18 locations, aimed at concentrating resources in stronger performing areas [20][21] - The company is committed to maintaining a leaner cost structure and aligning expenses with revenue [38][64] Management's Comments on Operating Environment and Future Outlook - Management emphasized that the volume decline was due to capital structure issues, not a lack of demand, and expressed confidence in the recovery of sales as inventory levels improve [57][64] - The impact of Winter Storm Fern was significant, affecting operations and customer payment behaviors, but management noted a recovery in collections post-storm [22][44] - The company is preparing for tax season demand, with early indicators showing improved deal structures and collections [78][106] Other Important Information - The company completed a $161.3 million asset-backed securitization transaction, which was a significant milestone in a challenging market [12][15] - The allowance for credit losses increased to 25.53% of finance receivables, reflecting portfolio dynamics and macroeconomic pressures [47] Q&A Session Summary Question: What are the sticking points in the warehouse negotiations? - Management indicated that the timing is structural and requires alignment across multiple stakeholders, which is complicated by the current market environment [74][75] Question: Are you seeing effects from tax refunds this year? - Early indicators show improved deal structures and collections, with tax seasonal payments being collected at a high rate [78] Question: How would you allocate the 22% unit decline among the factors? - The inventory levels were the largest driver of the decline, followed by the impact of Winter Storm Fern [85][88] Question: How have delinquencies trended absent the storm? - By mid-February, delinquencies had significantly decreased, indicating a return to expected ranges [91] Question: What is the expected run rate for SG&A going forward? - The company expects to see savings from recent store consolidations reflected in the fourth quarter, with a target SG&A of around $45-$46 million [96]

Financial Performance - In 2025, gold production increased by 22% year-over-year, with gold revenue reaching $909 million, up 82% from $499 million in 2024 [3][6] - Adjusted EBITDA was $464 million, a 185% increase from $163 million in 2024, reflecting strong leverage to higher gold prices [3][6] - Adjusted net earnings were $241 million or $1.28 per share, up from $56 million or $0.35 per share in 2024, marking a 265% increase [3][6] - The company generated $127 million in free cash flow, with a cash balance of $392 million at year-end, up from $252 million in 2024 [7][9] Business Line Performance - Segovia produced 228,000 ounces of gold in 2025, a 21% increase from 188,000 ounces in 2024, driven by improved milling rates and higher gold grades [10][14] - Marmato's development is ahead of schedule, with significant progress in the bulk mining zone and construction of the CIP plant [17][20] - Segovia's all-in sustaining cost (AISC) was $1,534 per ounce, up 3% year-over-year, while total AISC was $1,705 per ounce, reflecting a 13% increase [14][15] Market Data - Gold prices increased by 48% in 2025, significantly impacting revenue and margins [3][15] - The company expects production guidance for 2026 to be between 300,000 and 350,000 ounces, representing over 25% growth year-over-year [4][26] Company Strategy and Industry Competition - The company aims to grow production to 500,000 ounces in the near term, with a long-term goal of reaching 1 million ounces annually [26] - The transition to the main board of the New York Stock Exchange is expected to enhance visibility among institutional investors and improve trading liquidity [23][25] Management Commentary - Management expressed confidence in the operational ramp-up and the successful execution of growth projects, including the Segovia and Marmato expansions [3][26] - The company highlighted its strong balance sheet and cash flow position, which supports its growth strategy [25] Other Important Information - The company completed the acquisition of the remaining 49% interest in Soto Norte for $80 million and reached an arbitration settlement with the Colombian government [26] - The construction of the Marmato CIP plant is on track for first gold production in Q4 2026, with a staged ramp-up expected [20][26] Q&A Session Summary Question: Update on Segovia ramp-up and throughput expectations - Management indicated that the ramp-up is going well, with expectations to reach a steady state of 3,000 tons per day by Q4 2026 [29][30] Question: Guidance on Q1 production - The company expects to maintain throughput around 2,600 tons per day in Q1 [31] Question: Growth capital for Marmato and other projects - The estimated total cost for Marmato is approximately $400 million, with a 2026 budget of $220 million [35][43] Question: Optimism about ramp-up of the CIP plant - Management expressed confidence in achieving the ramp-up milestones and believes they are realistic and achievable [45]

Financial Data and Key Metrics Changes - Fourth quarter revenues were $22 million, a 9.4% decline compared to the prior year, driven by lower billable hours and weak demand due to cost pressures on property management companies [10] - Gross profit in the fourth quarter was $7.7 million, down from $8.7 million in the prior year, with a gross profit margin of 35% [10] - SG&A expenses for the fourth quarter were $9.3 million, down from $10.5 million in the prior year [11] - Fourth quarter adjusted EBITDA was a loss of $947 thousand, an improvement from a loss of $1.6 million in the prior year [11] - The company reported a fourth quarter GAAP net loss from continuing operations of $0.11 per diluted share [12] Business Line Data and Key Metrics Changes - The company is now solely focused on property management staffing after the sale of the professional division, which has allowed for a debt-free status and a strong cash position [4] - Ongoing G&A costs are estimated to be around $12 million, with public company costs at approximately $2 million [5] Market Data and Key Metrics Changes - Customer feedback indicates a more optimistic sentiment this year compared to the previous year, with a willingness to spend on staffing and PropTech support services [27] - Top-line sales through the first two months of the current year are slightly ahead of 2025, indicating a positive start [32] Company Strategy and Development Direction - The company is transitioning its website to BGStaffing.com to improve SEO performance and brand positioning [7] - A key strategic initiative includes expanding into the PropTech support market through a partnership with Yardi, enhancing the company's positioning in multifamily and commercial property management staffing [8] - The company is focused on optimizing AI investments to improve client and candidate experiences [9] Management Comments on Operating Environment and Future Outlook - Management expressed that the current market environment is more favorable than a year ago, with customers showing increased interest in spending on services [27] - There is an expectation of mid-single-digit growth in full-year sales for 2026 compared to 2025 [34] Other Important Information - The company has implemented significant cost-cutting measures, resulting in improved EBITDA loss despite lower sales [11] - The company plans to finalize the settlement of a $5.2 million escrow receivable from the sale of the professional division during Q2 [12] Q&A Session Summary Question: Can you walk us through the Yardi relationship and its implications for the business? - The Yardi partnership allows the company to fill gaps in implementation and training for property management customers, serving as a referral base for independent consultants [17][18] Question: What is the potential size of the Yardi business? - The potential is significant as Yardi is widely used in the property management space, with opportunities at both corporate and on-site levels [19][20] Question: How do you characterize the overall market environment today? - There is a more optimistic sentiment among customers, with plans to leverage staffing and PropTech support services [27] Question: What are the ongoing SG&A costs expected to be? - Ongoing G&A costs are estimated at around $12 million, with the fourth quarter SG&A number being higher due to transitional costs [23][24] Question: How do you expect growth to unfold in 2026? - The company expects growth in every quarter of 2026, driven by both market conditions and improved execution [59][62]