Financial Data and Key Metrics Changes - In 2025, rental revenue totaled $164.3 million, a 14% increase year-over-year, while total revenue reached $172.3 million, up approximately 10% compared to 2024 [13] - Adjusted EBITDA for the fourth quarter was $21.2 million, and for the full year, it was $81 million, both record figures for the company [6][13] - Net income for 2025 was $19.9 million, or $1.57 per diluted share, marking record performance [15] Business Line Data and Key Metrics Changes - Rented horsepower increased to approximately 563,000 by year-end 2025, a 14% increase over the prior year, with fleet utilization reaching 84.9% [5] - Rental revenue in the fourth quarter was $44.3 million, reflecting a 16% year-over-year increase due to fleet expansion and strong demand for large horsepower compression units [5] Market Data and Key Metrics Changes - Demand for natural gas compression remains strong, driven by domestic oil production, particularly in liquid-rich basins like the Permian [9] - Structural tailwinds include increasing LNG export capacity and growing electricity consumption from data centers and AI-related infrastructure, expected to drive growth for several years [9][22] Company Strategy and Development Direction - The company is focused on large horsepower and electric units, which generate higher returns and longer contract durations, while maintaining a disciplined capital allocation framework [8] - NGS aims to continue expanding its market share in the rental compression industry, having taken market share for three consecutive years [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive further improvements and increase shareholder value, supported by strong operational execution and market demand [4][19] - The company anticipates continued organic growth in 2026, driven by large horsepower deployments and expanding customer relationships [19] Other Important Information - The company initiated a return of capital program in 2025, returning approximately $2.6 million to shareholders through dividends [7] - Capital expenditures for 2025 totaled $121.5 million, with $109.8 million allocated for growth capital expenditures [17] Q&A Session Summary Question: Guidance on rental gross margins relative to 2025 - Management did not provide specific guidance on adjusted rental gross margins but expects modest uplift from the 60.6% figure in 2025 [24] Question: Lead times for large horsepower units - Lead times for high-end large horsepower units have extended to over 100 weeks, while lower horsepower units have not seen significant changes [25][26] Question: Competitive environment and pricing due to delays in large horsepower units - The competitive landscape is evolving, and while lead times are increasing, the company has sufficient units to meet customer needs [31] Question: Opportunities in midstream due to longer lead times - The company is seeing quoting activity in midstream but has not yet won contracts in that area [37] Question: Maintenance capital expenditures and their trajectory - Maintenance capital expenditures are expected to gradually increase due to the significant fleet horsepower growth over the past five years [59] Question: Future focus on power generation opportunities - The company is considering power generation as a potential area for growth but has not yet found a business with similar application lengths as compression [54]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $41.8 million, an increase of 86% compared to $22.5 million in Q4 2024, primarily due to the inclusion of Greenbrook operations following the acquisition [17] - Adjusted pro forma revenue growth for Q4 was 23% year-over-year [17] - Gross margin decreased to 52% in Q4 2025 from 66% in the prior year, attributed to the lower margin of Greenbrook's clinic business [19] - Net loss for Q4 2025 was $7.2 million, or $0.10 per share, compared to a net loss of $12.7 million, or $0.34 per share in the prior year [20] - Positive operating cash flow of $0.9 million in Q4 2025, marking a significant improvement from negative cash flow in previous quarters [21] Business Line Data and Key Metrics Changes - Clinic revenue grew 28% on an adjusted pro forma basis for the full year, with Q4 clinic revenue at $23.5 million, a 37% increase [6][18] - NeuroStar system revenue was $4.4 million in Q4, a 15% increase year-over-year, with 49 systems shipped [18] - Treatment session revenue for NeuroStar was $12.4 million in Q4, with a pro forma increase of 6% compared to the prior year [18] Market Data and Key Metrics Changes - The referring provider network added 430 new providers in Q4, a 25% increase year-over-year, contributing to over 1,300 new referrers added across 2025 [7] - Total treatment volume increased by 18% year-over-year in Q4 [8] - TRICARE West expanded coverage for TMS therapy to include adolescents aged 15 and older, effective across 26 states [12] Company Strategy and Development Direction - The company aims to leverage its integrated model to drive growth through expanding NeuroStar TMS systems to market and addressing the unmet need for treatment-resistant depression [25][26] - Collaboration with Compass Pathways on COMP360 psilocybin is seen as a potential transformational treatment for TRD, with plans for commercial launch upon FDA approval [27][29] - The company is focused on operational efficiencies and reducing overall expenses while driving towards sustainable operating cash flow [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue improving cash flow and operational efficiency, with expectations for positive cash flow in the second half of 2026 [21][24] - The company anticipates strong revenue performance in its clinic business, with growth in the double digits to mid-teens, while NeuroStar business is expected to grow in the low to mid-single digits [22] Other Important Information - The company appointed Dan Reuvers as the new President and CEO, effective March 23, 2026 [5] - The company has made a one-time principal payment of $5 million to reduce outstanding debt obligations and interest expenses [21] Q&A Session Summary Question: Insights on CID investigation in Florida and Michigan - Management confirmed ongoing cooperation with the U.S. Attorney's Office regarding documentation for billing practices prior to the Greenbrook acquisition [35] Question: Differences in patient monitoring for COMP360 - The treatment effect of COMP360 appears durable after one or two administrations, similar to Spravato, and will require certified healthcare settings for administration [38] Question: Cash position and Q1 cash burn - The $5 million payment to Perceptive came from non-restricted cash, and the company remains comfortable with its cash position despite projected Q1 cash burn [41][42] Question: Guidance on clinic growth and Spravato contribution - Majority of growth in the clinic is expected to come from volume, with Spravato growth anticipated to be higher than TMS [46][47] Question: Integration of COMP360 into current infrastructure - The existing infrastructure for Spravato clinics provides advantages for administering COMP360, with experienced staff and back-office support already in place [64]

Financial Data and Key Metrics Changes - Discretionary assets under management (AUM) decreased by 1.2% in Q4 2025 from $24.3 billion to $24 billion, while total discretionary AUM increased by 3% year-over-year from $23.3 billion to $24 billion [3] - Total AUM decreased by 1.6% in Q4 to $37 billion but increased by 2% year-over-year from $36.5 billion, with no revenue effect [4] - Revenue for Q4 was $32 million, with a reported consolidated net loss of $0.1 million [11] - For the full year, revenue increased by 1.3% year-over-year, driven by market appreciation in discretionary AUM, partially offset by net client outflows [13] Business Line Data and Key Metrics Changes - Organic new client accounts added in Q4 amounted to $124.5 million, bringing the total for the year to $688.3 million, indicating strong client acquisition [3] - Compensation and benefits expense for Q4 increased by 12.1% year-over-year, primarily due to merit-based increases and new hires [11] Market Data and Key Metrics Changes - The firm ranked 6th in Nasdaq eVestment's Q4 2025 brand awareness rankings among mid-sized firms, reflecting growing recognition of its institutional capabilities [6] Company Strategy and Development Direction - Silvercrest is focused on significant strategic investments to promote growth across multiple fronts, particularly in intellectual capital and headcount [5] - The firm is expanding its international business development efforts, with professionals now in London and Australia, and is creating an Australian investment trust and a UCITS vehicle in Europe [6][7] - The company expects to receive regulatory approval to operate in Europe through its new Dublin office by Q2 2026 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term vision and investment plans, anticipating that these will bear fruit with patience [43] - The firm expects to see significant flows from its global and international strategies in 2026, with a potential for multiple billions of dollars in AUM [26] Other Important Information - Total compensation and benefits expense for the full year was $83.9 million, representing 67% of revenue, compared to 62% in 2024 [8] - The company repurchased approximately $50.4 million worth of shares, with a new share repurchase program of $25 million announced in May 2025 [9][17] Q&A Session Summary Question: Current AUM in global and international strategies - The company currently has over $2 billion across global and international strategies, with strong performance and a robust pipeline expected to yield significant flows in 2026 [22][23] Question: Future compensation ratio expectations - The compensation ratio is expected to remain elevated due to ongoing hiring and investment in growth, with historical ratios around 54%-56% [31][32] Question: Thoughts on future buybacks - The company is open to considering further buybacks, emphasizing the importance of returning capital to investors while also managing equity awards [37][38]

Financial Data and Key Metrics Changes - In 2025, rental revenue totaled $164.3 million, a 14% increase year-over-year, while total revenue reached $172.3 million, up approximately 10% compared to 2024 [13] - Adjusted EBITDA for the fourth quarter was $21.2 million, and for the full year, it was $81 million, both record figures for the company [6][19] - Net income for 2025 was $19.9 million, or $1.57 per diluted share, marking record performance [15] Business Line Data and Key Metrics Changes - Rented horsepower increased to approximately 563,000 by year-end 2025, a 14% increase over the prior year, with fleet utilization reaching 84.9% [5] - Rental revenue in the fourth quarter was $44.3 million, reflecting a 16% year-over-year increase due to fleet expansion and strong demand for large horsepower compression units [5] Market Data and Key Metrics Changes - Demand for natural gas compression remains strong, driven by domestic oil production, particularly in liquid-rich basins like the Permian [9] - Structural tailwinds include increasing LNG export capacity and growing electricity consumption from data centers and AI-related infrastructure [9][22] Company Strategy and Development Direction - The company is focused on large horsepower and electric units, which generate higher returns and longer contract durations [8] - NGS is committed to a capital allocation framework that combines organic growth, shareholder returns through dividends and share repurchases, and disciplined evaluation of strategic M&A opportunities [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth and market share expansion, expecting Adjusted EBITDA guidance for 2026 to be between $90.5 million and $95.5 million [19][22] - The company is monitoring geopolitical developments and their potential impact on global oil markets and U.S. production activity [9] Other Important Information - The company initiated a return of capital program in 2025, returning approximately $2.6 million to shareholders in the second half of the year [7] - Capital expenditures for 2025 totaled $121.5 million, with $109.8 million allocated for growth capital expenditures [17] Q&A Session Summary Question: Guidance on Adjusted Rental Gross Margin - Management did not provide specific guidance but expects modest uplift from the 60.6% margin achieved in 2025 [24] Question: Lead Times for Equipment - Lead times for large horsepower units have extended significantly, particularly for high-end models, but lower horsepower units have not seen significant changes [25][26] Question: Competitive Environment and Pricing - The competitive landscape is evolving, and while lead times are increasing, the company has sufficient units to meet customer needs [31] Question: Maintenance Capital Expenditures - Maintenance capital expenditures are expected to gradually increase due to the significant fleet horsepower growth over the past five years [59] Question: Discretionary Cash Flow and Return of Capital - Management acknowledged the importance of a consistent and increasing dividend but did not provide specific guidance for future returns of capital [45]

Financial Data and Key Metrics Changes - Total revenue in Q4 2025 was $41.8 million, an increase of 86% compared to $22.5 million in Q4 2024, primarily driven by the inclusion of Greenbrook operations following the acquisition [17] - Adjusted pro forma revenue growth for Q4 was 23% year-over-year [17] - Gross margin was 52% in Q4 2025, down from 66% in the prior year, due to the inclusion of Greenbrook's lower-margin clinic business [19] - Net loss for Q4 2025 was $7.2 million, or $0.10 per share, compared to a net loss of $12.7 million, or $0.34 per share in the prior year [20] Business Line Data and Key Metrics Changes - Total revenue from the NeuroStar business was $18.3 million in Q4 2025, representing a 9% increase on a pro forma basis [17] - U.S. NeuroStar system revenue was $4.4 million, a 15% year-over-year increase, with 49 systems shipped in the quarter [18] - U.S. treatment session revenue was $12.4 million, with a 6% increase on a pro forma basis compared to the prior year [18] - Clinic revenue for Q4 was $23.5 million, a 37% increase on an adjusted pro forma basis, driven by growth in treatments across both NeuroStar TMS and Spravato [18] Market Data and Key Metrics Changes - The referring provider network added 430 new providers in Q4, a 25% increase year-over-year, contributing to over 1,300 new referrers added across 2025 [7] - Total treatment volume increased by 18% year-over-year in Q4 [8] - TRICARE West expanded coverage for TMS therapy to include adolescents aged 15 and older, effective across 26 states [12] Company Strategy and Development Direction - The company aims to leverage its integrated model to drive growth through expanding how NeuroStar TMS systems are brought to market and addressing the unmet need for treatment-resistant depression (TRD) [25][26] - Collaboration with Compass Pathways on COMP360 psilocybin is seen as a potential transformational treatment for TRD, with plans for commercial launch upon FDA approval [27][29] - The company is focused on operational efficiencies and expects to reduce operating expenses while driving revenue growth [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve positive operating cash flow and improve cash conversion through operational efficiencies [20][21] - The company anticipates strong revenue performance in 2026, with guidance for total revenue between $160 million and $166 million, representing over 9% growth versus 2025 [21][22] - Management acknowledged seasonality impacts on revenue, particularly in Q1, and noted weather-related challenges affecting patient access [51][54] Other Important Information - The company appointed Dan Reuvers as the new President and CEO, effective March 23, 2026 [5] - The company achieved positive operating cash flow in Q4 2025, marking a significant milestone [6] Q&A Session Summary Question: Insights on CID investigation in Florida and Michigan - Management confirmed ongoing cooperation with the U.S. Attorney's Office regarding documentation for billing practices prior to the Greenbrook acquisition [35] Question: Differences in patient monitoring for COMP360 - The Chief Technology Officer explained that COMP360 would be administered under a REMS protocol similar to Spravato, with durable treatment effects after one or two doses [38] Question: Cash position after debt payment - Management clarified that the $5 million payment to Perceptive came from non-restricted cash, leaving a comfortable cash balance for operations [41][42] Question: Guidance on clinic growth and Spravato - Management indicated that the majority of growth in the clinic business would come from volume, with Spravato expected to represent a growing share of treatment volume [46][47] Question: Integration of COMP360 into existing infrastructure - Management stated that the existing infrastructure and staff at Greenbrook clinics are well-prepared to administer COMP360 treatments [65]

Financial Data and Key Metrics Changes - Total revenue for the year ending December 31, 2025, was $5.8 million, which includes $3.4 million in license and other revenues and $2.4 million in net product revenue [13][14] - Net income for the year was $71.2 million, or $0.34 per basic and $1.01 per diluted common share, compared to a net loss of $63.7 million in 2024 [17] - Cash equivalents and short-term investments totaled $191.4 million as of December 31, 2025 [17] Business Line Data and Key Metrics Changes - The company treated one patient with ZEVASKYN in December 2025, marking the first commercial treatment [13][14] - The average net revenues are expected to normalize as the payer mix expands to include commercially insured patients [14] - Cost of sales for 2025 was $1.5 million, primarily driven by the first commercial ZEVASKYN treatment [15] Market Data and Key Metrics Changes - Demand for ZEVASKYN has grown, with over 100 potentially eligible patients identified across initial qualified treatment centers and community-based physicians [8] - Major commercial payers, including UnitedHealthcare and Cigna, have published coverage policies for ZEVASKYN, representing roughly 80% of commercially covered lives [11] Company Strategy and Development Direction - The company aims to have at least seven qualified treatment centers (QTCs) active by the end of 2026 to ensure a geographically expansive footprint [11] - The focus is on building a consistent cadence of patient treatments and biopsies to scale ZEVASKYN effectively [4][7] - The company is committed to ensuring a seamless experience for patients throughout the ZEVASKYN treatment journey [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability, stating that anything north of three patients a month would lead to profitability [52] - The company is focused on solidifying its commercial blueprint in 2026 after achieving its first commercial proof of concept in 2025 [18] - Management acknowledged the variability in the speed at which patients receive treatment but expects improvements as more QTCs become operational [9][24] Other Important Information - The company recorded a $152.4 million gain from the sale of a rare pediatric disease priority review voucher in May 2025 [16] - The FDA approved ZEVASKYN in April 2025, which has led to a transition of certain costs from R&D to SG&A [16] Q&A Session Summary Question: Cadence of Qualified Treatment Centers - Management indicated that the onboarding of QTCs is influenced by various factors, including institutional bureaucracies and the need for coverage policies to be established [23][24] Question: R&D Spending Drivers - R&D spending is expected to be driven by registry study costs and pipeline development, with a shift from R&D to SG&A as the company transitions to a commercial entity [28] Question: Patient Concentration Around QTCs - Management expects that new patients will be distributed across all QTCs, with a strategy to ensure geographical spread to facilitate patient access [40] Question: Manufacturing and Sterility Testing - The company is confident that sterility testing issues are resolved and is ramping up production capacity to meet demand [90][91] Question: Feedback from Patients and Physicians - Feedback from treated patients is still limited due to the small number of patients treated, but initial reports indicate positive outcomes [94][96]

Financial Data and Key Metrics Changes - In Q4 2025, rental revenue reached $44.3 million, a 16% year-over-year increase, while full-year rental revenue totaled $164.3 million, up 14% from the previous year [5][12] - Adjusted EBITDA for Q4 was $21.2 million, and for the full year, it was $81 million, both record figures for the company [5][12] - Net income for 2025 was $19.9 million, or $1.57 per diluted share, marking a record performance [15] Business Line Data and Key Metrics Changes - Rented horsepower increased to approximately 563,000 by year-end 2025, a 14% increase over the prior year, with fleet utilization reaching 84.9% [5][12] - Adjusted Rental Gross Margin for the full year was $99.6 million, reflecting a 14% year-over-year increase [13] Market Data and Key Metrics Changes - Demand for natural gas compression remains strong, driven by domestic oil production, particularly in liquid-rich basins like the Permian [8] - The company expects structural tailwinds from increasing LNG export capacity and growing electricity consumption from data centers and AI-related infrastructure [21][22] Company Strategy and Development Direction - The company is focused on fleet expansion, particularly in large horsepower and electric units, which generate higher returns and longer contract durations [7] - NGS initiated a return of capital program in 2025, including a dividend program that returned approximately $2.6 million to shareholders [6][17] - The company is committed to a disciplined capital allocation framework that includes organic growth, shareholder returns, and strategic M&A opportunities [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive further improvements and increase shareholder value, citing strong execution and market share gains [4] - The company anticipates continued organic growth in 2026, driven by large horsepower deployments and sustained industry demand for compression services [19] Other Important Information - The company recorded a $2.6 million non-cash impairment charge related to its Midland headquarters property [15] - Capital expenditures for 2025 totaled $121.5 million, with approximately $109.8 million allocated to growth capital expenditures for new large horsepower compression units [17] Q&A Session Summary Question: Guidance on large horsepower and electric motor drive assets' impact on rental gross margins - Management did not provide specific guidance on Adjusted Rental Gross Margin but expects modest uplift from the 60.6% figure in 2025 [24] Question: Lead times for large horsepower units and current bottlenecks - Lead times for high-end large horsepower units have extended beyond 100 weeks, while lower horsepower units have not seen significant changes [25][26] Question: Competitive environment and pricing due to delays in large horsepower units - The competitive landscape is evolving, and while lead times for high horsepower units are long, the company has sufficient units to meet customer needs [32] Question: Opportunities in midstream and pricing dynamics - The company is seeing quoting activity in midstream but has not yet won contracts in that area; they believe they can penetrate this market with their technology and service [38][42] Question: Return of capital and dividend strategy moving forward - Management understands shareholders' desire for a consistent and increasing dividend but did not provide specific guidance for 2026 [46] Question: Maintenance capital expenditures and their trajectory - Maintenance capital expenditures are expected to gradually increase due to the significant fleet horsepower growth over the past five years [61]

Financial Data and Key Metrics Changes - Discretionary assets under management (AUM) decreased by 1.2% in Q4 2025 from $24.3 billion to $24 billion, while total discretionary AUM increased by 3% for the year from $23.3 billion to $24 billion [3][4] - Total AUM decreased by 1.6% in Q4 to $37 billion but increased by 2% year-over-year from $36.5 billion [4][10] - Revenue for Q4 was $32 million, with a reported consolidated net loss of $0.1 million [10][14] - Adjusted EBITDA for Q4 was approximately $2.9 million, representing 8.9% of revenue [11] - For the full year, revenue increased by $1.7 million or 1.3%, while expenses increased by $10 million or 9.4% [12][13] Business Line Data and Key Metrics Changes - Organic new client accounts added in Q4 totaled $124.5 million, bringing the full year total to $688.3 million, indicating strong client acquisition [3] - Compensation and benefits expense for the full year was $83.9 million, representing 67% of revenue, up from 62% in 2024 [7][13] Market Data and Key Metrics Changes - The firm ranked 6th in Nasdaq eVestment's Q4 2025 brand awareness rankings among mid-sized firms, indicating growing recognition in institutional capabilities [6] - The firm is expanding its international business development efforts with professionals in London and Australia, and is nearing completion of an Australian investment trust and a UCITS vehicle in Europe [6] Company Strategy and Development Direction - Silvercrest is making significant strategic investments to promote growth across multiple fronts, focusing on intellectual capital and headcount [5] - The firm is adjusting its interim compensation ratio to match investments in business growth, expecting it to remain elevated for the foreseeable future [7] - The company is actively pursuing regulatory approval to operate in Europe through a new Dublin office, which is expected to be completed in Q2 2026 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term vision and investment plans, anticipating that these will bear fruit with patience [43] - The firm is optimistic about the potential for significant AUM growth in global and international strategies, currently holding over $2 billion in these areas [21][25] Other Important Information - Total assets at the end of 2025 were approximately $166.6 million, down from $194.4 million at the end of 2024 [14] - Cash and cash equivalents at the end of 2025 were $44.1 million, compared to $68.6 million at the end of 2024 [15] Q&A Session Summary Question: Current AUM in global and international strategies and future growth potential - The firm currently has over $2 billion in global and international strategies, with strong performance and a robust pipeline expected to yield significant flows in 2026 [21][25] Question: Future compensation ratio expectations - The compensation ratio is expected to remain elevated due to ongoing hiring and investment in growth, with historical ratios around 54%-56% [30][31] Question: Thoughts on future buybacks and share count - Management indicated that further buybacks will be considered, and they aim to offset any shares given to employees to maintain a declining share count [37][38]

Financial Data and Key Metrics Changes - Total revenue in Q4 2025 was $41.8 million, an increase of 86% compared to $22.5 million in Q4 2024, primarily driven by the inclusion of Greenbrook operations following the acquisition [17] - Adjusted pro forma revenue growth for Q4 was 23% year-over-year [17] - Net loss for Q4 2025 was $7.2 million, or $0.10 per share, compared to a net loss of $12.7 million, or $0.34 per share in the prior year [20] - EBITDA for Q4 2025 was negative $4.3 million, an improvement from negative $11 million in the prior year [20] - Cash provided by operations in Q4 was positive $0.9 million, marking a significant improvement from negative cash flow earlier in the year [21] Business Line Data and Key Metrics Changes - NeuroStar business revenue, including system and treatment session revenue, was $18.3 million in Q4 2025, representing a 9% increase on a pro forma basis [17] - U.S. NeuroStar system revenue was $4.4 million, a 15% year-over-year increase, with 49 systems shipped in the quarter [18] - U.S. treatment session revenue was $12.4 million, with a pro forma increase of 6% compared to the prior year [18] - Clinic revenue for Q4 was $23.5 million, a 37% increase on an adjusted pro forma basis, driven by growth in treatments across both NeuroStar TMS and Spravato [18] Market Data and Key Metrics Changes - The referring provider network added 430 new providers in Q4, a 25% increase year-over-year, contributing to over 1,300 new referrers added across 2025 [7] - Total treatment volume increased by 18% year-over-year in Q4 [9] - The expansion of TRICARE West coverage for TMS therapy to include adolescents aged 15 and older is a significant development for military families [13] Company Strategy and Development Direction - The company aims to leverage its integrated model to drive growth through expanding how NeuroStar TMS systems are brought to market and addressing the unmet need for treatment-resistant depression (TRD) [26][28] - Collaboration with Compass Pathways on COMP360 psilocybin is seen as a potential transformational treatment for TRD, with plans for commercial launch upon FDA approval [28][29] - The company is focused on operational efficiency and expects to reduce operating expenses to less than $100 million by Q4 2026 [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive revenue growth and achieve sustainable operating cash flow, with expectations for positive cash flow in the second half of 2026 [25] - The company acknowledges seasonality impacts on revenue, particularly in Q1, and is adapting its strategies accordingly [55][56] - Management highlighted the importance of maintaining strong relationships with primary care physicians and enhancing patient access to treatments [26] Other Important Information - The company appointed Dan Reuvers as the new President and CEO, effective March 23, 2026, indicating a leadership transition [5] - The company has made significant progress in integrating Greenbrook's operations, achieving positive operating cash flow and strengthening its balance sheet [16] Q&A Session Summary Question: Can you provide details on the CID investigation in Florida and Michigan? - Management confirmed that they are cooperating with the U.S. Attorney's Office regarding documentation for billing practices prior to the Greenbrook acquisition [36] Question: What are the profitability and patient monitoring differences for COMP360? - The treatment effect of COMP360 appears durable after one or two doses, and it will be administered under a REMS protocol similar to Spravato [40][42] Question: How did the $5 million payment to Perceptive affect cash position? - The payment did not come from restricted cash, and the company remains comfortable with its cash position despite projected Q1 cash burn [43][44] Question: Can you elaborate on the growth guidance for the clinic and standalone businesses? - Majority of growth in the clinic business is expected to come from volume, with Spravato growth anticipated to be significant in Q1 due to buy-and-bill impacts [50] Question: What are the integration requirements for the Compass collaboration? - The existing infrastructure for Spravato clinics will facilitate the integration of COMP360 treatments, with minimal additional updates needed [68]

Financial Data and Key Metrics Changes - Total revenue for the year ending December 31, 2025, was $5.8 million, which includes $3.4 million in license and other revenues and $2.4 million in net product revenue [11] - Net income was $71.2 million for the year ended December 31, 2025, compared to a net loss of $63.7 million in 2024 [15] - Cash equivalents and short-term investments totaled $191.4 million as of December 31, 2025 [15] Business Line Data and Key Metrics Changes - The company treated its first commercial patient with ZEVASKYN in December 2025, marking a significant milestone [3] - Demand for ZEVASKYN has grown, with over 100 potentially eligible patients identified across treatment centers and community-based physicians [6] - The company expects gross margins to increase significantly as more patients are treated, benefiting from economies of scale [12] Market Data and Key Metrics Changes - ZEVASKYN has established coverage across all major commercial payers, representing approximately 80% of commercially covered lives, and has baseline coverage across all Medicaid programs in all 50 states [9] - The company anticipates activating at least 7 qualified treatment centers (QTCs) by the end of 2026 to expand its market access [9] Company Strategy and Development Direction - The company is focused on building a consistent cadence of patient treatments and biopsies to scale ZEVASKYN in 2026 and beyond [3] - The strategy includes engaging community physicians to identify eligible patients and ensuring a seamless experience for patients throughout the treatment journey [5][6] - The company aims to have a geographically dispersed network of treatment centers to improve patient access and streamline the reimbursement process [9][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability, stating that treating more than three patients per month would lead to profitability [49] - The company is optimistic about the early momentum and is committed to delivering a seamless experience for ZEVASKYN patients [10] - Management highlighted the importance of operational excellence and the need to solidify the commercial blueprint in 2026 [16] Other Important Information - The company recorded a $152.4 million gain from the sale of a rare pediatric disease priority review voucher in June 2025 [14] - R&D spending decreased to $26.8 million in 2025 from $34.4 million in 2024, primarily due to the FDA approval of ZEVASKYN [12][13] Q&A Session Summary Question: What is the expected cadence for qualified treatment centers (QTCs) to be activated? - Management indicated that they expect to have 7 QTCs active by the end of the year, with various factors influencing the speed of activation [20][21] Question: What are the drivers of R&D spending for 2026 and beyond? - R&D spending will be driven by the registry study required by the FDA and pipeline development costs, with a shift from R&D to SG&A as the company transitions to a commercial entity [26][32] Question: How many patients can each QTC manage at maximum capacity? - Management expects each QTC to manage one to two patients per month, with some institutions potentially reaching three patients per month [40][42] Question: What is the current timeline from receipt of the start form to treatment initiation? - The average timeline is currently around 4-5 months, which includes approximately one month of manufacturing time, but this is expected to improve over time [46][48] Question: How confident is the company in achieving profitability in the first half of the year? - Management believes there is a good chance of achieving profitability, with a target of treating more than three patients per month to reach that goal [49][50] Question: What feedback has been received from patients and physicians regarding the treatment experience? - Feedback is still limited due to the small number of treated patients, but initial reports indicate positive outcomes [90][92]