Financial Data and Key Metrics Changes - Fiscal year 2025 revenue totaled $5.43 billion, reflecting a 2.4% increase year-over-year, with an organic growth rate of 3.9% [26][29] - Adjusted EBITDA margin for the full year was 12.9%, up from 11.6% in the prior year, and adjusted earnings per share were $7.36, a 20% increase from $6.11 [26][29] - Free cash flow for fiscal year 2025 was $366 million, with strong cash flows of $642 million in the fourth quarter alone [26][33] Business Line Data and Key Metrics Changes - The U.S. federal services segment achieved 12.1% organic growth, while the outside-the-U.S. segment delivered 4.1% organic growth [5][29] - Revenue for the U.S. services segment decreased to $1.76 billion from $1.91 billion, with an operating income margin of 9.7%, down from 12.9% in the prior year [31][32] - The outside-the-U.S. segment's revenue decreased to $600 million due to divestitures, but it experienced positive organic growth of 4.1% [32] Market Data and Key Metrics Changes - The total pipeline at September 30 was $51.3 billion, up from $44.7 billion in the previous quarter, with 64% representing new work [24] - Approximately 66% of the total pipeline is attributable to the U.S. federal services segment, with significant opportunities tied to the One Big Beautiful Bill Act still in development [24] Company Strategy and Development Direction - The company is focused on three strategic priorities for fiscal year 2026: expanding in U.S. federal markets, policy-driven initiatives, and deploying AI and tech-enabled automation [7][8] - Investments in AI capabilities are a key priority, aimed at transforming service delivery and enhancing operational efficiency [20][21] - The company aims to maintain a disciplined approach to capital allocation, prioritizing organic investments, dividends, and strategic acquisitions [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth opportunities, citing strong customer relationships and strategic investments as key drivers [7][9] - The company anticipates that fiscal 2026 will be defined by shaping efforts, with actual work and revenue expected to materialize in fiscal year 2027 [43] - Management noted that the impact of the recent government shutdown is expected to be minimal, as most programs are deemed essential services [55][57] Other Important Information - The company repurchased approximately $457 million worth of shares during fiscal year 2025, with a remaining authorization of $250 million [34][35] - The adjusted EPS guidance for fiscal year 2026 is projected to be between $7.95 and $8.25, with a midpoint of $8.10 [37][41] Q&A Session Summary Question: Can you provide more color on what's driving the EBITDA margin expansion for 2026? - Management indicated that the margin guidance reflects continued deployment of technology and automation, along with cost management efforts [47][50] Question: How are you thinking about the effects of the government shutdown on your results? - Management does not anticipate negative impacts on contract delivery, as most programs were funded prior to the shutdown [55][56] Question: What are your priorities for allocating capital in the short term? - The company remains focused on growth in the U.S. federal market, particularly in defense and national security, while also considering M&A opportunities [60][63] Question: What phase of the opportunity related to the One Big Beautiful Bill are you currently in? - Management noted that states are actively planning for compliance with new requirements, with significant urgency around SNAP payment error rates [66][68]

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, with no debt [15][16] Business Line Data and Key Metrics Changes - Revenue from Cybersecurity as a Service (CCAs) was $7.3 million, up 60% year-over-year, comprising 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 growth, with a strong performance and a robust pipeline [9][10] Market Data and Key Metrics Changes - Increased sales in the Americas, particularly from a large Smart order and growing contributions from the U.S. market [12] - Recurring revenue as a percentage of total revenue increased to 63% in Q3 2025 from 58% in Q3 2024 [13] Company Strategy and Development Direction - The company is executing a cybersecurity-first strategy and focusing on a renewed go-to-market approach [7][10] - The launch of OPNET Secure aims to enhance cybersecurity protection for end customers, expanding the service beyond the operator's infrastructure [8] - The company is optimistic about long-term growth, with expectations for 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 strategy, highlighting the positive momentum in CCAs and network intelligence solutions [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, with $40 million received in Q2 and $6 million in Q3 [15] - The company reported positive operating cash flow of $4 million for the third consecutive quarter [15] Q&A Session Summary Question: Increased traction with major telecom customer - Management noted positive trends in both tax rates and new services launched, contributing to significant growth in CCAs revenue and ARR [18] Question: Details on the first customer for OPNET Secure - Management indicated that the first customer values 24/7 protection and is looking to enhance their service with OPNET [19][21] 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 contracts and the onboarding of additional customers, with a focus on strategic accounts [27] Question: Competitive landscape for network intelligence offerings - Management described the competitive landscape as easier, with unique technology providing a competitive edge [28] Question: Drivers of growth in larger CCAs contracts - Management identified new customer additions, upselling, and cross-selling as key growth drivers [32] Question: Progress with Verizon Live's penetration - Management refrained from discussing specific customers but expressed overall satisfaction with progress [39] Question: Role of Terra 3 in customer conversations - Management highlighted a good mix of new opportunities and discussions with existing customers, focusing on customer success [41]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported revenue of $5.43 billion, reflecting an organic growth rate of 3.9% compared to the previous year [25][27] - The adjusted EBITDA margin for the full year was 12.9%, an increase from 11.6% in the prior year, while adjusted earnings per share rose to $7.36 from $6.11, representing a 20% increase [27][28] - Free cash flow for fiscal year 2025 totaled $366 million, with strong cash flows of $642 million in the fourth quarter alone [25][31] Business Line Data and Key Metrics Changes - The U.S. federal services segment achieved 12.1% organic growth, driven by high demand in clinical and disaster support programs [5][27] - The U.S. services segment revenue decreased to $1.76 billion, with an operating income margin of 9.7%, down from 12.9% in the prior year due to the completion of pandemic-related engagements [29][30] - The outside-the-U.S. segment reported revenue of $600 million, with a 4.1% organic growth rate, and an operating income margin improved to 3.7% from 1.2% in the prior year [30] Market Data and Key Metrics Changes - The total pipeline of sales opportunities as of September 30 was $51.3 billion, up from $44.7 billion in the previous quarter, with 66% of this attributed to the U.S. federal services segment [24][22] - Approximately 64% of the total pipeline represents new work, indicating a strong future growth potential [24] Company Strategy and Development Direction - The company is focusing on three strategic priorities for fiscal year 2026: expanding in U.S. federal markets, policy-driven initiatives related to the One Big Beautiful Bill Act, and deploying AI and tech-enabled automation [8][10] - Investments in AI capabilities are seen as crucial for transforming service delivery and enhancing operational efficiency [21][22] - The company aims to maintain a disciplined approach to capital allocation, prioritizing organic investments, dividends, and strategic acquisitions to accelerate growth [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth, citing strong customer relationships and a robust pipeline of opportunities, particularly in the U.S. federal services segment [7][42] - The company anticipates that fiscal year 2026 will be characterized by shaping efforts, with actual revenue growth expected to materialize in fiscal year 2027 [42][43] - Management noted that the impact of the recent government shutdown is expected to be minimal, as most programs are deemed essential services [48][49] Other Important Information - The company repurchased approximately $457 million worth of shares during fiscal year 2025, with a remaining authorization of $250 million for future repurchases [32][33] - The adjusted EPS guidance for fiscal year 2026 is projected to be between $7.95 and $8.25, reflecting ongoing margin expansion and growth [36][40] Q&A Session Summary Question: Can you provide more color on what's driving the EBITDA margin expansion for 2026? - Management indicated that the margin guidance reflects continued deployment of technology and automation, along with cost management initiatives [44][45] Question: How do you anticipate the government shutdown affecting results? - Management stated that they do not expect negative impacts on contract delivery, as most programs were funded prior to the shutdown [48][49] Question: What are the priorities for allocating capital in the short term? - The company emphasized a focus on growth in the U.S. federal market, particularly in defense and national security, while also considering M&A opportunities [51][52]

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] - 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 the previous year [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 some European countries [14] - Ducoral sales decreased from EUR 22.3 million to EUR 21.5 million, impacted by foreign currency fluctuations and lower sales during the 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 a chikungunya outbreak [15] Market Data and Key Metrics Changes - The company is focusing on expanding into low- and middle-income countries (LMICs) and new territories for IXIARO, leveraging its differentiated product profile [20][21] - The Lyme disease vaccine, VLA15, is expected to be a major growth driver, with regulatory submissions anticipated in 2026 and a potential launch in autumn 2027 [20][31] Company Strategy and Development Direction - The company aims to achieve sustainable profitability post-approval and commercialization of the Lyme disease vaccine, which is seen as a significant growth catalyst [20][21] - Valneva is actively identifying new opportunities for its R&D pipeline, aiming to build a coherent strategy for future vaccine candidates [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming Lyme disease vaccine data, which is expected to be a pivotal moment for the company [20][37] - The company is focused on reducing cash burn and ensuring sufficient runway to reach key inflection points, with cash at September 30 reported at EUR 143.5 million [18][19] Other Important Information - The company successfully completed debt refinancing, enhancing financial flexibility [5] - Research and development expenses increased to EUR 59.7 million, partly due to costs related to the Shigella vaccine candidate [17] Q&A Session Summary Question: Timeline for FDA response regarding exchange - Management indicated there is no predefined process for the FDA response and hopes for a collaborative interaction [24][25] Question: Impact of currency and distributor shift on Ducoral sales - Management noted that the transition to a new distributor in Germany caused a technical delay in purchases, but growth for Ducoral is expected to continue [25][26] Question: Timing for Lyme phase 3 readout - Management stated that Pfizer controls the process and is taking steps to ensure an early readout, with no major delays anticipated [27][28] Question: Remedies proposed to FDA for exchange BLA suspension - The response to the FDA focused on medical evidence and positive risk-benefit ratios, with ongoing pharmacovigilance reviews [29] Question: Launch timeline for VLA15 - Management confirmed that timelines communicated by Pfizer support a launch in the autumn of 2027, contingent on regulatory submissions next year [30][31] Question: Funding considerations for Zika vaccine candidate - Management highlighted uncertainty around funding and regulatory pathways, indicating that substantial funding would be necessary to proceed with development [33][36]

Financial Data and Key Metrics Changes - The stockholders approved the proposal to grant discretionary authority to the Board of Directors for a reverse stock split within a range of 1-for-2 to a maximum of 1-for-10, indicating a strategic move to potentially enhance share value [12][13][14] - The company successfully ratified the selection of M&K CPAs as the independent registered public accounting firm for the fiscal year ending December 31, 2025, ensuring compliance and transparency in financial reporting [15] Business Line Data and Key Metrics Changes - The amendment to the 2022 equity incentive plan to increase the number of shares authorized for issuance to 5 million was approved, which may impact employee compensation and retention strategies [14] Market Data and Key Metrics Changes - The approval of the issuance of shares to Streeterville Capital, LLC, in prepaid financing transactions that may collectively equal or exceed 20% of the issued and outstanding shares indicates a significant capital raise strategy [14] Company Strategy and Development Direction - The company is pursuing a reincorporation from Delaware to Nevada, which may provide more favorable business regulations and tax benefits [13] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during this meeting, focusing instead on the proposals and voting results Other Important Information - The meeting concluded with the election of seven directors, ensuring continuity in governance and strategic direction [12][13] Summary of Q&A Session - There were no recorded questions or answers during the meeting, as the focus was primarily on the proposals and voting outcomes

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] - Gross profit margin expanded by 160 basis points to 37.6%, driven by disciplined pricing and a shift towards higher-income customers [4][17] - 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 [18] Business Line Data and Key Metrics Changes - Shoe Station net sales grew by 5.3%, while Shoe Carnival net sales declined by 5.2%, reflecting a significant performance gap of 10.5 percentage points [5][15] - Athletics represented 51% of total sales in Q3, with low single-digit growth overall, while non-athletic categories saw a mid-single-digit comp decline [4][16] - Shoe Station's product margins expanded by 260 basis points, contrasting with Shoe Carnival's decline due to economic pressures on lower-income households [5][18] Market Data and Key Metrics Changes - The company is strategically shifting away from lower-income households, focusing on customers with median incomes of $60,000-$100,000 [5][9] - The competitive response in the lower-income segment is driving margins down across the industry, while Shoe Station is positioned to capture premium brand demand [5][9] Company Strategy and Development Direction - The company plans to consolidate to one brand, Shoe Station, to improve operational efficiency and capitalize on the stronger performance of this banner [8][9] - By the end of fiscal 2027, the company expects to achieve $20 million in annual cost savings and $100 million in working capital freed from inventory reduction [9][27] - The transition to Shoe Station is expected to restore comparable sales growth and expand EPS significantly by fiscal 2028 [12][27] Management's Comments on Operating Environment and Future Outlook - Management highlighted that fiscal 2026 will be an investment year, with expectations of continued pressure on sales in the first half, followed by a potential turnaround in the second half as Shoe Station becomes the dominant brand [22][23] - The company remains debt-free with over $100 million in cash, allowing it to fund its transformation without external financing [10][13] - Management expressed confidence in the long-term value creation potential of the one-banner strategy, emphasizing the shift in consumer preferences towards premium brands [29] Other Important Information - The company completed 101 store re-banners during fiscal 2025, with plans to reach 51% of its stores operating as Shoe Station by back-to-school 2026 [7][28] - The Rogan's acquisition is fully integrated into Shoe Station, and results will be reported under this banner starting in Q4 [20] Q&A Session Summary Question: What is the expected drag on earnings from re-bannering next year? - Management indicated that re-banner expenses for the next year are expected to be between $25 million and $30 million, with costs being front-loaded due to the conversion of approximately 70 stores [30][31] Question: How will the company manage inventory reductions? - The company plans to liquidate non-GoForward products aggressively and expects some margin pressure during this process [52][53] Question: What is the outlook for the boot business? - Management noted that while the boot season started slowly, there were double-digit increases in sales as inventory improved in October [35] Question: Will the company be able to elevate its product assortment at Shoe Station? - Management confirmed that there are ongoing discussions with premium brands to enhance the product assortment at Shoe Station [37] Question: What is the timeline for achieving the 80% re-bannering goal? - Management stated that the focus is on reaching the critical 51% threshold by summer 2026, with plans to exceed 90% by the end of fiscal 2028 [54]

Financial Data and Key Metrics Changes - For the nine months ending September 30, 2025, revenues were approximately $3.5 million, a decrease from approximately $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, a significant decrease from approximately $15.3 million in the same period of the previous year, mainly due to reduced 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 decreased operating expenses and income from discontinued operations [37][38] Business Line Data and Key Metrics Changes - The financial results of Lavie Bio, Evogene's subsidiary, are presented as a single line item in the consolidated P&L statement for 2025, reflecting the sale of the majority of its activities to ICL [8][29] - Research and development expenses for the nine months of 2025 were approximately $6.2 million, a decrease of approximately $3.6 million compared to $9.8 million in the nine months of 2024, primarily due 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 were approximately $1.2 million, a decrease of approximately $400,000 compared to 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 global pharmaceutical market for small molecule-based drugs is valued at approximately $780 billion, representing nearly 60% of the market [23] Company Strategy and Development Direction - The company is transitioning to focus on computational chemistry and generative design of small molecules for the pharmaceutical and agriculture industries [6][7] - The strategy includes leveraging the proprietary generative AI tech engine, Campus AI, to design novel small molecules that meet multiple parameters for commercial success [12][18] - The company aims to strengthen collaborations with leading global companies in both agriculture and pharmaceuticals to drive innovation and product development [28][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 [39][40] - The company expects to announce additional collaborations in the pharma division and expand existing partnerships in agriculture, which are anticipated to generate cash inflows [47][48] Other Important Information - The company completed a cost reduction plan, which is reflected in the reduced operating expenses for the third quarter of 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 activities in the pharma industry, and they have seen growing interest in their technology [39][40] Question: How close are you to unlocking partners with AI champs? - Management indicated that interest has increased significantly, and they expect to announce new collaborations with biotech companies early next year [43][44] Question: What is the IR strategy going forward? - Management confirmed that they will focus on presenting the new company strategy and will initiate roadshows and participate in conferences to increase visibility [45][46] Question: Could you highlight upcoming catalysts over the coming 6-12 months? - Management expects to announce new collaborations in both the pharma and ag divisions, as well as additional partnerships with major tech companies [47] 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 [48] 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, highlighting the unique expertise of their team and the potential for significant financial rewards [49][50]

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 [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 [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 [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 [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 respectively, all up from earlier in the year [18] - 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 fleet modernization and sustainability, with plans to deliver two methanol dual-fuel new-building Campermax vessels by early 2028 [4] - A disciplined chartering strategy has secured approximately $149 million in contracted revenues, ensuring earnings visibility and resilience against market downturns [8] - The company is committed to promoting eco-friendly technologies and transparency in emissions data as part of its ESG initiatives [32] Management 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 [18] - The outlook for 2026 appears positive, with projected revenues supporting a return to cash flow profitability despite potential challenges in 2025 [15] - The company is observing developments in Genco Shipping and Trading Limited, considering its strategic stake [33] 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 ongoing efforts to modernize [14] Q&A Session Summary Question: How should we think about your significant stake in Genco now? - Management stated that the position in Genco has strategic value, and they are currently observing developments without direct contact with Genco's management [33] Question: Can you comment on the recent development in Ocean Chow? - Management indicated that Diana Shipping's interest in Ocean Chow is minimal and not material at this stage [34]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $26.4 million, representing a 14% year-over-year increase [5][11] - Non-GAAP operating income was $3.7 million, compared to $1.1 million in Q3 2024 [12] - 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 [13][14] - Cash and investments totaled $81 million as of September 30, 2025, up from $59 million at the end of 2024, with no debt [15] Business Line Data and Key Metrics Changes - Cybersecurity as a Service (CCAS) revenue was $7.3 million in Q3 2025, up 60% year-over-year, comprising 28% of total revenue [11][12] - CCAS Annual Recurring Revenue (ARR) as of September 2025 was $27.6 million [11] - The Smart product for network intelligence also contributed to growth, with a strong pipeline and backlog [8][9] Market Data and Key Metrics Changes - Increased sales in the Americas, particularly from a large Smart order and growing contributions from the U.S. market [11] - Recurring revenue as a percentage of total revenue increased to 63% in Q3 2025, up from 58% in Q3 2024 [12] Company Strategy and Development Direction - The company is executing a cybersecurity-first strategy and focusing on a renewed go-to-market approach [6][9] - The introduction of OPNET Secure aims to enhance cybersecurity protection for end customers, expanding the service beyond the operator's infrastructure [7][19] - The company is optimistic about long-term growth, with expectations for CCAS ARR to surpass 60% year-over-year growth by year-end 2025 [10][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position and growth strategy, highlighting the positive momentum in CCAS and network intelligence solutions [6][9] - The competitive landscape is viewed as more favorable, with unique technology providing a competitive edge [25] - Management anticipates continued growth in both CCAS and Smart product lines, supported by a robust pipeline and backlog [9][11] Other Important Information - The company completed a $46 million follow-on share offering, enhancing its financial resources for growth initiatives [14] - The company reported positive operating cash flow for the third consecutive quarter, totaling $4 million in Q3 2025 [14] Q&A Session Summary Question: Increased traction with major telecom customers - Management noted positive trends in both tax rates and new services launched, contributing to significant growth in CCAS revenue and ARR [17] Question: Details on the first customer for OPNET Secure - The first customer aims for 24/7 protection for their customers, combining network security with OPNET services [19][20] Question: Drivers of CCAS growth - Growth is primarily from new customer contracts and the onboarding of additional customers from existing contracts [23] Question: Competitive landscape for network intelligence offerings - The competitive environment is currently more favorable, with unique technology providing a competitive edge [25] Question: Drivers of growth in larger CCAS contracts - Growth is driven by new customer additions and upselling additional services to existing customers [28] Question: Terra 3's role in customer conversations - The company is focusing on customer success and maintaining a healthy mix of new and existing customer opportunities [35]

Financial Data and Key Metrics Changes - Net revenue for the first half of fiscal year 2025 reached $38 million, reflecting a 15% increase compared to the same period last year [18] - Income from operations was $471,000, representing a 108.1% increase year on year, effectively more than doubling [18][20] - Operating cash flow improved significantly, turning positive at $2.60 million compared to a negative figure in the same period last year [22] Business Line Data and Key Metrics Changes - The sports school business generated revenue of $27 million, an 8.5% year-on-year increase, driven by an increase in membership and strong event performance [20] - The social business achieved sales revenue of $11 million, a 35.4% year-on-year increase, primarily due to an increase of 114 schools contracting for school club support and expansion in after-school daycare services [20] Market Data and Key Metrics Changes - The proportion of social business revenue to total revenue increased from 24% in fiscal year 2023 to 28% in the first half of fiscal year 2025, indicating growth in the social business segment [18] - The company supported 349 schools nationwide as of the end of June 2025, marking a 48.5% year-on-year increase [19] Company Strategy and Development Direction - The company aims to expand its sports school business internationally, leveraging its expertise and experience cultivated in Japan [10][28] - The school club support business is identified as a core growth strategy, with plans to target public junior high schools in designated cities [25] - The company views the transition of club activities to the private sector as a significant market opportunity, potentially creating a new market worth approximately JPY 1 trillion [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the social business, particularly in light of national policy initiatives promoting club activity reform [26] - The company anticipates net sales for the full year 2025 to be between $80.2 million and $82.6 million, representing a growth of 12%-15% compared to the full year of 2024 [21] Other Important Information - The company successfully completed its initial public offering and listed its shares on the Nasdaq market in October 2025 [9] - The business model generates revenue primarily from monthly membership fees and service contracts with local governments and schools [14] Q&A Session Summary Question: What do you think about the future of social business, especially school club support business? - The company plans to continue growing the school club support business, targeting public junior high schools in designated cities, and recognizes the significant economic impact of transitioning club activities to the private sector [25][26] Question: Please tell us about your overseas business expansion in the U.S. and other countries. - The company intends to expand its sports schools overseas, considering regions beyond the U.S., and plans to include various sports popular in those areas [28] Question: Are you considering listing in Japan? - The company is not ruling out the possibility of a future listing in Japan but is currently focused on its Nasdaq listing [30] Question: Why is the operating profit margin low? - The company acknowledges that solving social issues incurs costs but is committed to improving this margin while expanding sales [31]