Financial Data and Key Metrics Changes - The company reported a 28% year-over-year increase in adjusted EPS for Q4, driven by a 6% net revenue growth and a record adjusted EBITDA margin of over 14.4% [6][12] - For the full fiscal year 2025, adjusted EPS grew by 16%, supported by mid-single-digit net revenue growth and strong margin expansion [6][12] - The consolidated backlog increased by 6% year-over-year to a record $23.1 billion, with a trailing 12-month book-to-bill ratio of 1.1 times [12][18] Business Line Data and Key Metrics Changes - Infrastructure and Advanced Facilities operating profit increased by 16% year-over-year in Q4, with a 13% increase for the full fiscal year [16][17] - PA Consulting's revenue grew by 10% year-over-year in Q4, contributing to a 17% increase in operating profit [17] - The water and environmental sector saw flat revenue year-over-year in Q4, while critical infrastructure net revenue increased by over 9% [15][16] Market Data and Key Metrics Changes - Net revenue growth across the three end markets was consistent, with water and environmental and life sciences and advanced manufacturing growing just over 4%, and critical infrastructure at about 6% for fiscal year 2025 [14] - The company experienced strong growth in the transportation sector, particularly in the U.S. and internationally, with significant projects in New York and the U.K. [10][15] Company Strategy and Development Direction - The company aims to redefine the asset life cycle and expand its addressable market with core clients, particularly in the water sector, which remains a high-growth area [7][10] - The strategy includes leveraging AI and digital capabilities to enhance service delivery and operational efficiency [49][50] - The company is focused on maintaining a disciplined capital returns policy while investing in growth opportunities [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering fiscal year 2026 with strong momentum, backed by a record backlog and expanding margins [22][20] - The company anticipates continued tailwinds in the transportation and energy sectors, with expectations for water to remain a key growth driver [15][16] - Management noted that fiscal year 2026 will include an extra week in Q4, which is expected to positively impact revenue growth [19] Other Important Information - Free cash flow generation for fiscal year 2025 was $607 million, with a commitment to return approximately 150% of free cash flow to shareholders [18] - The company approved a $0.32 per share dividend, representing a 10% year-over-year increase [18] Q&A Session Summary Question: Impact of federal government shutdown on fiscal 2026 bookings - Management indicated that there was no impact from the federal government shutdown on fiscal 2025 bookings, as awards occurred before the shutdown [24][25] Question: Update on PA Consulting negotiations - Management confirmed that negotiations are progressing and a decision is expected before March 2026 [26] Question: Softness in environmental business - Management explained that regulatory volatility and a pause in spending from private sector clients contributed to the softness in the environmental sector [31][35] Question: Guidance on free cash flow - Management clarified that the guidance includes a one-time tax event and cash expenses related to the PA Consulting combination [39] Question: Margin performance in infrastructure and advanced facilities - Management noted that margins are expected to show a linear progression throughout fiscal year 2026, with Q1 being the slowest [46][48] Question: Transportation funding visibility under IIJ - Management confirmed that transportation remains a catalyst for growth, with strong performance seen globally [57] Question: Regional performance across end markets - Management reported double-digit growth in the Middle East and recovery in Europe, with strong performance across all regions [58][59] Question: Pipeline outlook and conversion - Management highlighted strong growth in the data center and semiconductor sectors, with a 5x increase in the data center pipeline [86][87]

Financial Data and Key Metrics Changes - Total revenues reached EUR 127 million for the nine months ended September 30, 2025, representing a growth of almost 9% compared to EUR 112.5 million in the same period of 2024 [4][16] - Product sales increased to EUR 119.4 million, up 6.2% from EUR 112 million in the first nine months of 2024 [14][16] - Operating loss reported at EUR 53.9 million compared to an operating profit of EUR 34.2 million in the prior year, primarily due to the sale of a priority review voucher in 2024 [18] Business Line Data and Key Metrics Changes - IXIARO sales reached EUR 74.3 million, increasing 12.5% year-over-year, driven by sales to the U.S. Department of Defense and increased sales in Europe [14] - Ducoral sales decreased from EUR 22.3 million to EUR 21.5 million, impacted by foreign currency fluctuations and a transition to a new distributor in Germany [14][15] - Exchange sales significantly increased to EUR 7.6 million from EUR 1.8 million, including the supply of doses to combat chikungunya outbreaks [15] Market Data and Key Metrics Changes - The company is focusing on expanding into low- and middle-income countries (LMICs) for IXIARO, leveraging its differentiated product profile [22] - The chikungunya vaccine, VLA1553, is being positioned for growth in endemic regions and travel sectors, although the U.S. market remains suspended pending FDA review [10][46] Company Strategy and Development Direction - The company aims to achieve sustainable profitability post-approval and commercialization of the Lyme disease vaccine, VLA15, expected to be a major growth driver [21][22] - Valneva is actively identifying new opportunities for its R&D pipeline, aiming to build a coherent strategy for future vaccine candidates [24] - The company is focusing on operational efficiency and reducing cash burn, with a cash position of EUR 143.5 million as of September 30, 2025 [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming Lyme vaccine data, which is anticipated to be a significant catalyst for the company [22][56] - The company is preparing for potential growth in product sales and is focused on strategic investments in R&D [21][24] - There is uncertainty regarding funding for the Zika vaccine candidate, which may affect its development moving forward [51][54] Other Important Information - The company successfully completed debt refinancing, enhancing its financial flexibility [5] - Cash used in operating activities decreased significantly to EUR 28.4 million from EUR 76.7 million in the first nine months of 2024 [20] Q&A Session Summary Question: Timeline for FDA response regarding the chikungunya vaccine - Management indicated there is no predefined process for the FDA response and hopes for collaborative interaction, but no specific timeline can be provided [29] Question: Impact of currency and distributor shift on Ducoral sales - Management acknowledged currency impacts and noted a technical delay in sales due to the transition to a new distributor in Germany, expecting continued growth for Ducoral [30][31] Question: Timing of Lyme phase 3 readout and potential delays - Management stated that Pfizer controls the process and is taking steps to ensure timely results, with no major delays anticipated [36][37] Question: Proposed remedies for the exchange BLA suspension - The response to the FDA focused on medical evidence and positive risk-benefit ratios, with ongoing pharmacovigilance reviews [40] Question: Launch timeline for VLA15 and IXIARO growth drivers - Management confirmed timelines for VLA15 support a launch in late 2027, while IXIARO's growth is expected to continue through expansion in endemic regions and travel markets [45][46] Question: Funding considerations for the Zika vaccine candidate - Management highlighted uncertainty around funding and regulatory pathways, indicating that substantial funding would be necessary to proceed with development [53][54]

Financial Data and Key Metrics Changes - Time charter revenues for Q3 2025 were $51.9 million, down from $57.5 million in the same quarter last year, reflecting the sale of two vessels earlier this year and one vessel in September 2024 [10] - Adjusted EBITDA decreased to $20.3 million from $23.7 million year-over-year, consistent with a smaller fleet [10] - Net income nearly doubled to $7.2 million from $3.7 million in Q3 2024, driven by lower expenses and a $10.6 million gain from the valuation of the investment in Genco [11] - Cash decreased to $133.9 million as of September 30, 2025, from $207.2 million at the end of 2024, due to strategic investments [11] - Long-term debt increased slightly to $651.1 million as of September 30, 2025, from $637.5 million at year-end 2024 [12] Business Line Data and Key Metrics Changes - Fleet utilization reached 99.5% for Q3 2025, indicating effective vessel management [4] - Time charter equivalent averaged $15,178 per day, a 1% decrease compared to $15,333 per day in Q3 2024 due to softer charter rates [12] - Daily operating expenses rose 1% to $6,014 compared to $5,964 last year, mainly due to higher crew costs [13] Market Data and Key Metrics Changes - The dry bulk market showed solid performance in Q3, with record Chinese imports reaching nearly 580 million metric tons [3] - The 12-month time charter rate for a typical Capesize stood at around $24,000 a day, with rates for Campermax and Ultramax at $15,600 and $15,900 per day, respectively [17] - The Baltic Capesize Index was at 3,636, and the Baltic Panamax Index at 1,895 as of November 19 [18] Company Strategy and Development Direction - The company is focused on a disciplined chartering strategy, securing approximately $149 million in contracted revenues with an average time charter rate of $16,200 per day [8] - Ongoing fleet modernization efforts include the delivery of two methanol dual-fuel new-building Campermax dry bulk vessels expected at the end of 2027 and early 2028 [4] - The company is committed to promoting eco-friendly technologies and modernizing its fleet as part of its ESG initiatives [32] Management's Comments on Operating Environment and Future Outlook - Management noted that the bulk carrier market has weathered geopolitical and trade developments well, with positive sentiment and new building orders appearing [17] - The outlook for 2026 appears positive, with potential revenues projected to reach $224.7 million at an average time charter rate of $17,102 per day [15] - The company anticipates that while projected revenues for 2025 may not fully cover break-even, the outlook for 2026 supports a return to cash flow profitability [15] Other Important Information - The company declared a quarterly cash dividend of $0.01 per common share for Q3 2025, totaling approximately $1.16 million [7] - The company has acquired 14.9% of Genco Shipping and Trading Limited's common shares [6] Q&A Session Summary Question: What is the company's strategy regarding its stake in Genco? - Management stated that the position in Genco has strategic value, and they are currently observing developments without direct contact with Genco's management [37] Question: What is the status of the company's holding in Ocean Chow? - Management indicated that Diana Shipping's interest in Ocean Chow is minimal and not material at this stage [39]

Financial Data and Key Metrics Changes - The company reported Q3 EPS of $0.53 and net sales of $297.2 million, both exceeding consensus expectations [3][4] - Gross profit margin expanded by 160 basis points to 37.6%, driven by disciplined pricing and a shift towards higher-income customers [4][18] - Net income for Q3 was $14.6 million, down from $19.2 million year-over-year, primarily due to re-banner investments impacting EPS by $0.22 [19][20] Business Line Data and Key Metrics Changes - Athletics represented 51% of total sales in Q3, with low single-digit growth overall, while Shoe Station specifically saw double-digit growth [4][16] - Shoe Station's net sales grew by 5.3%, while Shoe Carnival's net sales declined by 5.2%, indicating a significant performance gap of 10.5 percentage points [5][19] - Non-athletic categories represented 43% of total sales in Q3, with a mid-single-digit comparable sales decline [4][17] Market Data and Key Metrics Changes - The company is strategically shifting away from lower-income households, which are under economic pressure, to focus on higher-income consumers with median household incomes of $60,000-$100,000 [6][9] - The company expects to reach a critical threshold of 51% of stores operating as Shoe Station by back-to-school 2026, which is anticipated to restore comparable sales growth [8][30] Company Strategy and Development Direction - The company announced a name change to Shoe Station Group, reflecting a strategic focus on building a stronger, more profitable company [3][14] - The plan includes converting underperforming locations to the Shoe Station format, with 101 store re-banners completed in fiscal 2025 [7][21] - The consolidation to one brand is expected to yield $20 million in annual cost savings and improved operational efficiencies by the end of fiscal 2027 [9][28] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of maintaining pricing discipline and not chasing unprofitable sales, especially in the lower-income segment [6][10] - The company anticipates modest gains beginning in 2027, with meaningful acceleration in 2028 as the transformation progresses [13][31] - Management expressed confidence in the long-term value creation potential of the one-banner strategy, emphasizing the shift in consumer preferences towards premium brands [14][30] Other Important Information - The company ended the quarter with over $107 million in cash equivalents and remains debt-free, providing financial flexibility for ongoing investments [20][30] - The company expects to free up $100 million in working capital through inventory reductions as it transitions to the Shoe Station model [10][26] Q&A Session Summary Question: What is the expected drag on earnings from re-bannering expenses next year? - Management indicated that re-banner expenses for the next year are expected to be between $25 million and $30 million, with costs front-loaded due to the conversion of approximately 70 stores [35][41] Question: How will the company handle inventory reductions and margin pressure? - Management acknowledged that there will be margin pressure from liquidating non-GoForward products, but emphasized the importance of not carrying over unsold inventory [58][69] Question: What is the timeline for reaching 80% of stores rebannered? - Management confirmed that the focus is on surpassing the critical 51% threshold by summer 2026, with plans to exceed 90% by the end of fiscal 2028 [71][72] Question: How much of the $20 million in savings is expected to flow to the bottom line? - Management stated that the full benefit of the $20 million savings is expected to manifest in 2028, as 2026 will be an investment year with ongoing re-banner costs [73][75]

Financial Data and Key Metrics Changes - The company held its 2025 Annual General Meeting, where various proposals were presented for stockholder approval, including a reverse stock split and amendments to the equity incentive plan [1][2][3] - The preliminary report indicated that all proposals, including the election of directors and the amendment to the equity incentive plan, received majority approval from stockholders [12][13][14][15] Business Line Data and Key Metrics Changes - Specific financial data and performance metrics for individual business lines were not disclosed during the meeting [1][2][3] Market Data and Key Metrics Changes - No specific market data or key metrics were discussed in the meeting [1][2][3] Company Strategy and Development Direction - The company proposed a reverse stock split to potentially enhance its stock price and market perception, with a range of 1-for-2 to a maximum of 1-for-10 [9][13] - The reincorporation from Delaware to Nevada was also approved, which may reflect strategic considerations for regulatory or tax advantages [10][13] Management Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting [1][2][3] Other Important Information - The meeting included the election of seven directors, with all nominated candidates receiving affirmative votes [12][13] - The company ratified the selection of M&K CPAs as its independent registered public accounting firm for the fiscal year ending December 31, 2025 [15] Summary of Q&A Session - There were no specific questions or answers documented in the meeting [1][2][3]

Financial Data and Key Metrics Changes - For the nine months ending September 30, 2025, revenues were approximately $3.5 million, a decrease from $4 million in the same period last year, primarily due to lower revenue from AgPlenus activity [9][31] - Total operating loss for the nine months of 2025 was approximately $8.8 million, significantly reduced from approximately $15.3 million in the same period of 2024, mainly due to decreased operating expenses [10][35] - The net loss for the nine months of 2025 was approximately $2.5 million, compared to approximately $18 million in the same period last year, reflecting a $15.5 million decrease primarily due to reduced operating expenses and income from discontinued operations [37][38] Business Line Data and Key Metrics Changes - Lavie Bio's financial results are presented as a single line item in Evogene's consolidated P&L statement, reflecting the sale of the majority of its activities to ICL, which generated income of approximately $7.9 million in Q3 2025 [9][29] - Research and development expenses for the nine months of 2025 were approximately $6.2 million, down from $9.8 million in the same period of 2024, attributed to reduced R&D expenses in Biomica and the cessation of Canonic's operations [31][32] - Sales and marketing expenses for the nine months of 2025 totaled approximately $1.2 million, a decrease from approximately $1.6 million in the same period last year, mainly due to personnel cost reductions [10][32] Market Data and Key Metrics Changes - The global agricultural market was valued at $79 billion in 2024, with significant opportunities for new product development in herbicides, insecticides, and fungicides [21] - The pharmaceutical market for small molecule-based drugs is valued at approximately $780 billion, representing nearly 60% of the global pharmaceutical market [24] Company Strategy and Development Direction - The company is transitioning to focus on computational chemistry, particularly in the generative design of small molecules for the pharmaceutical and agriculture industries [7][27] - The strategy includes leveraging the proprietary generative AI tech engine, Campus AI, to design novel small molecules that meet multiple parameters for commercial success [18][27] - The company aims to strengthen collaborations with leading global companies in both the agriculture and pharmaceutical sectors to drive innovation and product development [20][25] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increased interest in AI-driven drug discovery following recent partnerships in the industry, indicating a positive outlook for Evogene's technology [41][42] - The company expects to announce additional collaborations with biotech companies and academic institutions in the near future, aiming to enhance its market position [46][50] - Management expressed confidence in the potential for success in the pharmaceutical sector, emphasizing the unique capabilities of their team and technology [56][57] Other Important Information - The company completed a cost reduction plan by the end of Q2 2025, which is reflected in the reduced operating expenses in Q3 2025 [8][29] - The cash balance as of September 30, 2025, was approximately $16 million, reflecting proceeds from the sale of Lavie Bio's assets [10][30] Q&A Session Summary Question: Has the levels of interest in AI champs increased post the recent NVIDIA Eli Lilly AI drug discovery partnerships? - Management noted that the announcement increased interest in AI-related companies in the pharma industry, and Evogene has seen growing interest in its technology [41][42] Question: How close are you to unlocking partners with AI champs? - Management indicated an increase in potential candidates for collaboration and expects to announce new partnerships with biotech companies early next year [45][46] Question: What is the IR strategy going forward? - Management confirmed plans to initiate roadshows and participate in conferences to enhance awareness of the company's new strategy and technology [47][49] Question: Could you highlight upcoming catalysts over the coming 6-12 months? - Management outlined expectations for new collaborations in both the pharma and ag divisions, as well as potential announcements regarding partnerships with major tech companies [50][51] Question: What type of revenue level can we expect for customer seeds in Q4 and for 2026? - Management refrained from disclosing specific revenue levels but mentioned ongoing discussions with strategic companies that could significantly impact future revenue [52][53] Question: How excited are you about AI champs compared to all your other times at Evogene? - Management expressed optimism about the focus on the pharma industry and the potential for significant financial rewards from successful collaborations [54][56]

Financial Data and Key Metrics Changes - Time charter revenues for Q3 2025 were $51.9 million, down from $57.5 million in the same quarter last year, reflecting the sale of two vessels earlier this year and one vessel in September 2024 [9] - Adjusted EBITDA decreased to $20.3 million from $23.7 million year-over-year, consistent with a smaller fleet [9] - Net income nearly doubled to $7.2 million from $3.7 million in Q3 2024, driven by lower expenses and a $10.6 million gain from the valuation of the investment in Genco [10] - Cash decreased to $133.9 million as of September 30, 2025, from $207.2 million at the end of 2024, due to strategic investments [10] - Long-term debt increased slightly to $651.1 million as of September 30, 2025, from $637.5 million at year-end 2024 [11] Business Line Data and Key Metrics Changes - Fleet utilization reached 99.5% for Q3 2025, highlighting effective vessel management [4] - Time charter equivalent averaged $15,178 per day, a 1% decrease compared to $15,333 per day in Q3 2024 due to softer charter rates [11] - Vessel operating expenses decreased by 6% to $20 million compared to $21.2 million in Q3 2024, attributed to the smaller fleet size [12] Market Data and Key Metrics Changes - The dry bulk market showed solid performance in Q3, with record Chinese imports reaching nearly 580 million metric tons [3] - The 12-month time charter rate for a typical Cape was around $24,000 a day, up from earlier in the year [17] - The bulk carrier fleet is forecasted to grow by 3.1% this year and by 3.4% in 2026, with the Cape segment projected to increase by only 1.4% in 2025 [24] Company Strategy and Development Direction - The company is focused on a disciplined chartering strategy, securing approximately $149 million in contracted revenues with an average time charter rate of $16,200 per day [7] - Ongoing fleet modernization efforts include the delivery of two methanol dual-fuel new-building Kamsarmax dry bulk vessels expected at the end of 2027 and early 2028 [4] - The company is committed to ESG initiatives, promoting eco-friendly technologies and modernizing the fleet [31] Management's Comments on Operating Environment and Future Outlook - Management noted that the bulk carrier market has weathered geopolitical and trade developments well, with positive sentiment and new building orders appearing [17][18] - The outlook for 2026 appears positive, with potential revenues projected to reach $224.7 million at an average time charter rate of $17,102 per day [15] - Management emphasized the importance of proactive debt management and liquidity actions to provide resilience for future opportunities [16] Other Important Information - The company declared a quarterly cash dividend of $0.01 per common share for Q3 2025, totaling approximately $1.16 million [6] - The average age of the fleet is approximately 12 years, with a total deadweight capacity of about 4.1 million tons [4] Q&A Session Summary Question: What is the company's strategy regarding its stake in Genco? - Management stated that the position in Genco has strategic value, and they are currently observing developments without direct contact with Genco's management [36] Question: What is the current holding in OceanPal? - Management indicated that Diana Shipping's interest in OceanPal is minimal and not material at this stage [38]

Financial Data and Key Metrics Changes - The company held its 2025 Annual General Meeting, where various proposals were presented for stockholder voting, including a reverse stock split and reincorporation [1][2][3] - The preliminary report indicated that all proposals, including the amendment to the equity incentive plan and the issuance of shares to Streeterville Capital, were approved by a majority of votes [12][13][14][15] Business Line Data and Key Metrics Changes - Specific financial data and performance metrics for individual business lines were not disclosed in the meeting [1][2][3] Market Data and Key Metrics Changes - No specific market data or key metrics were provided during the meeting [1][2][3] Company Strategy and Development Direction - The company proposed a reverse stock split to potentially enhance its stock price and market perception, with a range of 1-for-2 to a maximum of 1-for-10 [9][13] - The reincorporation from Delaware to Nevada was aimed at potentially benefiting from a more favorable regulatory environment [10][13] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting [1][2][3] Other Important Information - The meeting included the election of seven directors, with all nominated candidates successfully elected [12] - The company plans to increase the number of shares authorized for issuance under its equity incentive plan to 5 million [14] Summary of Q&A Session - No Q&A session was documented in the provided meeting records [1][2][3]

Financial Data and Key Metrics Changes - Total revenues reached EUR 127 million for the nine months ended September 30, 2025, representing a growth of almost 9% compared to the same period in 2024 [4][16] - Product sales increased to EUR 119.4 million, up 6.2% from EUR 112 million in the first nine months of 2024 [14] - Operating loss reported at EUR 53.9 million compared to an operating profit of EUR 34.2 million in the prior year, primarily due to the sale of a priority review voucher in 2024 [18][19] Business Line Data and Key Metrics Changes - IXIARO sales increased by 12.5% to EUR 74.3 million, driven by sales to the U.S. Department of Defense and increased sales in Europe [14] - DUKORAL sales decreased from EUR 22.3 million to EUR 21.5 million, impacted by foreign currency fluctuations and a transition to a new distributor in Germany [14][15] - IXCHIQ sales surged to EUR 7.6 million from EUR 1.8 million, aided by the supply of doses during a chikungunya outbreak [15] Market Data and Key Metrics Changes - The gross margin on commercial products, excluding IXCHIQ, improved to 57.2% from 48.6% in the prior year, driven by better manufacturing performance [16] - IXIARO's gross margin reached 63.2%, up from 58.8%, while DUKORAL's gross margin improved to 52.3% from 34.8% [16] Company Strategy and Development Direction - The company aims to focus on strategic investments in R&D and anticipates continuous growth in product sales, particularly from the Lyme disease vaccine, VLA15, expected to be a significant growth driver [21][22] - Valneva is working on expanding IXCHIQ into low- and middle-income countries (LMICs) and is exploring new partnerships to enhance market access [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming Lyme vaccine data, which could lead to sustained profitability post-commercialization [21][22] - The company is focused on reducing cash burn and maintaining a strong cash position to support future growth initiatives [4][19] Other Important Information - The company successfully completed debt refinancing, enhancing financial flexibility [5] - Cash at the end of September 2025 was reported at EUR 143.5 million, down from EUR 168.4 million at the end of 2024 [19] Q&A Session Summary Question: Timeline for FDA response regarding IXCHIQ - Management indicated there is no predefined process for the FDA response and hopes for a collaborative interaction, although no specific timeline can be provided [29][30] Question: Impact of currency and distributor shift on DUKORAL - Management acknowledged currency impacts and noted a technical delay in sales due to the transition to a new distributor in Germany, expecting continued growth for DUKORAL [31][32] Question: Timing for Lyme phase III readout - Management stated that Pfizer controls the process and is taking steps to ensure timely results, with no major delays anticipated [36][38] Question: IXCHIQ BLA suspension and proposed remedies - The response to the FDA focused on medical evidence and a positive risk-benefit ratio, with ongoing pharmacovigilance reviews [40][41] Question: Launch timeline for VLA15 - Management confirmed that timelines communicated by Pfizer support a launch in the autumn of 2027, contingent on regulatory submission next year [46] Question: Future growth drivers for IXCHIQ - Management sees growth opportunities in travel and endemic countries, with ongoing discussions for market access in various territories [47][48] Question: Funding considerations for Zika vaccine candidate - Management highlighted uncertainties around funding and regulatory pathways, indicating that substantial funding would be necessary to proceed with development [54][55]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $26.4 million, representing a 14% year-over-year increase [5][12] - Non-GAAP operating income was $3.7 million, compared to $1.1 million in Q3 2024 [14][15] - Non-GAAP net income was $4.6 million, or $0.10 per diluted share, compared to $1.3 million, or $0.03 per diluted share, in the same quarter last year [15] - Cash and investments totaled $81 million as of September 30, 2025, up from $59 million at the end of 2024 [15][16] - Recurring revenue as a percentage of total revenue increased to 63% in Q3 2025 from 58% in Q3 2024 [13] Business Line Data and Key Metrics Changes - Revenue from the CCAS (Cybersecurity as a Service) segment was $7.3 million, up 60% year-over-year, accounting for 28% of total revenue [12][5] - CCAS annual recurring revenue (ARR) as of September 2025 was $27.6 million [12] - The Smart product line also contributed to revenue growth, with a strong backlog and visibility heading into the next year [9][10] Market Data and Key Metrics Changes - Increased sales in the Americas were noted, aligning with the strategy to boost business in this region [12] - The company is seeing strong traction among major telecom operators for its cybersecurity solutions [7][8] Company Strategy and Development Direction - The company is focused on a cybersecurity-first strategy and a renewed go-to-market approach [7][10] - There is an emphasis on expanding the CCAS offering and enhancing the Smart product line to maintain technology leadership [9][10] - The company is optimistic about long-term growth, expecting CCAS ARR to surpass 60% year-over-year growth by year-end 2025 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position and growth trajectory, citing a robust pipeline and backlog [10][11] - The competitive landscape is viewed as more favorable, with unique technology providing a competitive edge [29] - Management raised full-year 2025 revenue guidance to between $100 million and $103 million [11] Other Important Information - The company completed a $46 million follow-on share offering, enhancing its financial resources [15] - Allot has no debt, positioning it well for future growth [16] Q&A Session Summary Question: Increased traction with major telecom customers - Management noted positive trends in both tax rates and new service launches contributing to significant growth in CCAS revenue and ARR [18] Question: Details on the first customer for OPNET Secure - The first customer aims for 24/7 protection for their customers, combining Allot's network security with OPNET [19][20] Question: Continued strength in the Smart pipeline - Management confirmed a strong pipeline with opportunities from both new and existing customers, particularly for the Terra 3 product [23] Question: Drivers of CCAS growth - Growth is primarily from new customer contracts and existing accounts expanding their services [27] Question: Competitive landscape for network intelligence offerings - The competitive environment is currently favorable, with unique technology providing a competitive edge [29] Question: Impact of ad campaigns on CCAS adoption - Management identified four drivers for CCAS growth, including new customer additions and upselling existing services [31][32]