Financial Data and Key Metrics Changes - Total revenue in Q2 reached $34.3 million, up 11% year over year, with GAAP net profit of $1.5 million, more than triple the previous quarter, resulting in a GAAP net margin of 4.3% [2][16] - Core revenues reached $18.2 million in Q2, representing 16.7% year over year growth, while Shenglong revenues grew 6.7% year over year [13][14] - Gross margin for Q2 was 66.8%, with a slight decrease of 1.2% year over year and sequentially [14] Business Line Data and Key Metrics Changes - The conversational AI engine has seen rapid iteration and upgrades, with new features aimed at enhancing user interaction [3][4] - The company reported a dollar-based net retention rate of 97% for Agora and 87% for Shenglong, marking improvements for both businesses [14] Market Data and Key Metrics Changes - The company has observed significant growth in active customers, with approximately 1,900 for Agora and 2,000 for Shenglong, representing a 121% increase year over year [2] - The conversational AI solution is gaining traction in various industries, with successful deployments in call centers, education, and companionship toys [24] Company Strategy and Development Direction - The company is focused on enhancing its conversational AI capabilities, with a strategic emphasis on high-growth verticals such as live shopping and entertainment [13] - The pricing for the conversational AI solution is expected to be significantly higher than standard RTC audio products, unlocking substantial revenue potential [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing to improve GAAP profitability through the remainder of the year, citing strong business momentum and visibility [2][16] - The company anticipates total revenues for Q3 2025 to be between $34 million and $36 million, reflecting a year-over-year growth rate of 7.6% to 13.9% [18] Other Important Information - The company announced the resignation of its CTO due to personal reasons, with operational responsibilities being taken over by the CEO [9] - The company has repurchased $127.2 million worth of shares since the approval of the share repurchase program in February 2025 [17] Q&A Session Summary Question: What application areas will see fast adoption and revenue contribution? - Management highlighted three advanced use cases for conversational AI: call centers, education, and companionship toys, expecting further adoption driven by customer success [24] Question: What are the trends for gross profit margin and net operating margin? - Management indicated that gross margins for the RTC business have been stable, with expectations for continued stability, while new conversational AI products may initially have lower margins but are expected to improve over time [25][26] Question: What is the market reception of the newly launched features? - Management noted positive early adoption trends and client feedback for the advanced attention locking and avatar features, emphasizing their importance in noisy environments and engaging interactions [30]

Financial Data and Key Metrics Changes - The company reported a net profit after tax of over $1.3 billion, with an EBITDA margin of 70%, which remains peer-leading despite lower realized prices and inflationary pressures [6][27] - The interim dividend was set at $0.53 per share, representing a half-year annualized yield of 6.9%, consistent with the company's policy to pay a minimum of 50% of underlying NPAT [5][34] - Unit production costs were reduced by 7%, with the average cost now at $7.7 per barrel of oil equivalent, and guidance for the full year adjusted to $8 to $8.5 per barrel [6][9][48] Business Line Data and Key Metrics Changes - Sangomar's production contributed significantly, achieving an outstanding half-year production of 548,000 barrels of oil equivalent per day, with total production reaching 99.2 million barrels of oil equivalent [5][11] - Marketing and trading activities generated a strong contribution of $144 million, accounting for approximately 8% of total EBIT [6] Market Data and Key Metrics Changes - The global LNG demand is expected to rise by approximately 60% by 2040, with Woodside positioned to meet this demand through projects like Scarborough and Louisiana LNG [14] - Gas hub exposure on produced LNG was 24.2%, realizing a premium of approximately 3% per MMBtu compared to oil-linked sales, indicating the value of price diversity in volatile markets [15] Company Strategy and Development Direction - The company aims to position itself as a global LNG powerhouse, focusing on sustainable operations and maximizing value from its core assets [4][19] - The acquisition of operatorship of Bass Strait assets from ExxonMobil is expected to strengthen Australian operations and unlock potential development opportunities [12][62] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of securing reliable and affordable energy supply while reducing emissions, highlighting the role of LNG in achieving these goals [13][14] - The company remains committed to safety and sustainability, with no high-consequence injuries reported during the period [5][39] Other Important Information - The company has made significant contributions to the Australian economy, paying AUD 1.3 billion in taxes, royalties, and levies during the half [40] - The Louisiana LNG project is seen as a game changer, with construction progressing and strong interest from potential partners for equity sell-downs [19][20] Q&A Session Summary Question: Update on Sangomar's performance and Phase two development - Management confirmed positive initial results from the S400 sand units and indicated that further data will inform decisions around Phase two development [45][46] Question: Unit production costs guidance - The guidance was adjusted to $8 to $8.5 per barrel, with Sangomar's strong performance contributing to the reduction [48][49] Question: Louisiana LNG sell-down expectations - Management stated that the project is advantaged, with competitive construction costs, and emphasized the importance of selecting the right partners [51][52] Question: Beaumont Demonia production schedule - The delay in production is due to construction delays managed by OCI, with no cost impact to Woodside [56][57] Question: Bass Strait development opportunities - Management expressed excitement about the operatorship transition and the potential for developing contingent resources [62] Question: Update on MOU with Aramco - Discussions with Aramco are ongoing, focusing on investment opportunities in LNG and low carbon ammonia [71][72] Question: Dividend payout ratio and balance sheet management - Management is confident in maintaining a strong balance sheet and generating strong cash flows to support the high payout ratio [75][78] Question: LNG carrier leasing plans - The company prefers leasing LNG carriers rather than owning them, with ongoing discussions about balance sheet exposure [94] Question: Decommissioning cost challenges - Management confirmed that lessons learned from decommissioning closed sites are being integrated into future planning to avoid similar challenges [96][97]

Financial Data and Key Metrics Changes - The company reported a net profit after tax of over $1.3 billion, with earnings of $0.69 per share, reflecting strong financial performance despite lower realized prices and inflationary pressures [5][27][34] - Unit production costs were reduced by 7%, bringing the average to $7.70 per barrel of oil equivalent, with guidance for the full year set between $8.00 and $8.50 [5][8][49] - The interim dividend was set at $0.53 per share, representing a half-year annualized yield of 6.9%, consistent with the company's policy to pay a minimum of 50% of underlying NPAT [4][34][80] Business Line Data and Key Metrics Changes - Sangomar's production reached 548,000 barrels of oil equivalent per day, contributing significantly to the overall production of 99.2 million barrels of oil equivalent [4][5] - Marketing and trading activities generated a strong contribution of $144 million, accounting for approximately 8% of total EBIT [5][27] - The Louisiana LNG project is 22% complete, with a target for first LNG cargo in 2026, and has secured long-term offtake agreements [19][20][22] Market Data and Key Metrics Changes - The global LNG demand is expected to rise by approximately 60% by 2040, driven by increasing energy consumption in non-OECD Asia Pacific countries [13][14] - Gas hub exposure on produced LNG was 24.2%, realizing a premium of approximately 3% per MMBtu compared to oil-linked sales [15] - The company is well-positioned to meet growing LNG demand with projects like Scarborough and Louisiana LNG in the pipeline [14][15] Company Strategy and Development Direction - The company aims to maximize value through its global marketing and trading business, leveraging its diverse portfolio of high-quality assets [14][15] - The strategic acquisition of operatorship of Bass Strait assets from ExxonMobil is expected to enhance operational capabilities and unlock additional gas resources [11][12] - The company is focused on sustainable operations, with no significant environmental impacts reported and a commitment to reducing greenhouse gas emissions [4][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong returns and navigate the energy transition, emphasizing the importance of safety and sustainability [41][39] - The ongoing exceptional performance of Sangomar and the strategic positioning of Louisiana LNG were highlighted as key drivers for future growth [11][19] - Management acknowledged the challenges in securing federal approvals for the North West Shelf Extension but remains optimistic about a positive outcome [10][10] Other Important Information - The company has maintained a strong liquidity position with $8.4 billion available, and gearing remains within the targeted range of 10% to 20% [36][37] - Significant contributions to the Australian economy were noted, with $1.3 billion paid in taxes, royalties, and levies during the half [40] - The company is actively managing its decommissioning operations, with lessons learned from past challenges being integrated into future planning [26][68] Q&A Session Summary Question: Update on Sangomar's performance and Phase two development - Management confirmed positive initial results from the S-four 100 sand units and indicated that further data will inform decisions around Phase two development [46][48] Question: Insights on unit production cost reductions - Management attributed the reduction in unit production costs to strong performance at Sangomar and ongoing cost control measures across the business [49][50] Question: Status of Louisiana LNG equity sell-down negotiations - Management stated that the project remains advantageous, with competitive construction costs and a disciplined approach to selecting partners [52][54] Question: Update on Beaumont Demonia's production schedule - Management clarified that delays were due to construction issues managed by OCI, with no cost impact to Woodside, and emphasized the focus on marketing efforts [56][58] Question: Development opportunities in Bass Strait - Management expressed excitement about the operatorship transition and the potential for developing long-standing gas discoveries [64][65] Question: Update on MOU with Aramco - Management confirmed ongoing constructive discussions with Aramco regarding investment opportunities in LNG and low carbon ammonia [73][74] Question: Dividend payout and balance sheet management - Management reassured that the strong performance and disciplined capital management support the decision to maintain a high payout ratio [77][80] Question: Update on LNG carrier plans - Management indicated a preference for leasing LNG carriers rather than owning them, with ongoing evaluations of balance sheet exposure [98][99]

Financial Performance - The company reported an FY '25 EBITDAF of $786 million, down from the originally guided $820 million, reflecting a 10% reduction in hydro production [4][11][12] - The NPAT was impacted by fair value adjustments on non-hedged accounted derivatives, while dividends increased by 3%, marking the seventeenth consecutive year of dividend growth [12][13] - Operating expenditure remained flat year-over-year, with a focus on reducing costs to $370 million in the future [11][16] Business Line Performance - The company achieved a total of 906,000 customer connections, benefiting from a multi-product offering and integration synergies [4] - The telecommunications segment added over 30,000 connections, contributing positively to margins despite slight yield reductions [14] Market Conditions - The company faced significant challenges due to low hydrology and high gas prices, which led to increased electricity spot prices [20][21] - The market responded with demand-side gas deals and increased thermal generation, which helped maintain energy security [21][22] Strategic Direction - The company is focused on a refreshed strategy that emphasizes productivity and execution of its build program, targeting significant growth in renewable energy generation by 2030 [2][3][6] - The company plans to accelerate generation development, with a goal of delivering 3.5 terawatt hours of new generation by 2030 [6][24] Management Commentary - Management acknowledged the challenges faced in FY '25 but expressed confidence in the company's ability to manage volatility and improve performance moving forward [20][42] - The company is committed to building a robust sales pipeline and executing long-term contracts to support future growth [24][30] Other Important Information - The company has a disciplined approach to balance sheet management, with $600 million in undrawn facilities and a dividend reinvestment plan in place [37][38] - Guidance for FY '26 includes an EBITDAF of $1 billion and a dividend of 25 cents per share, reflecting confidence in earnings growth [5][40] Q&A Summary Question: Update on geothermal opportunity - Management confirmed that updates on geothermal prospects will be provided as progress is made, emphasizing the priority of this initiative [46][47] Question: Concerns about government interventions - Management noted limited information from the government but expressed support for collaborative industry efforts to address energy challenges [49][50] Question: Guidance details - The guidance for FY '26 includes $7 million in yield growth, with expectations aligned with CPI for price increases [61][64] Question: Operational expenditure targets - Management explained that the target of $370 million in OpEx is based on restructuring and careful cost management, with significant savings already in place [82][84] Question: Battery capacity and economic viability - Management highlighted the importance of making smart investment decisions regarding battery projects, ensuring they are economically viable [78][80]

Financial Data and Key Metrics Changes - FY 2025 marked a record year for the company with production of 26.6 petajoules equivalent, up 17% from FY 2024 [6] - Record revenue of $268 million, a 22% increase compared to FY 2024 [6] - Underlying EBITDAX reached $173.9 million, up 36% year-over-year, with a margin of 65% [6][27] - Adjusted cash from operations was CAD 160.5 million, a 40% increase from FY 2024 [6][30] - Unit production costs decreased by 10% to $2.33 per gigajoule [6][29] Business Line Data and Key Metrics Changes - Average annual group production rate was 73 terajoules equivalent per day, exceeding targets [2][28] - The East Coast supply project (ECSP) is on track to bring gas online as early as 2028 [4] - Average processing rate at the August plant was 62 terajoules per day, a 25% increase from FY 2024 [10] - The Athena gas plant's average processing rate was 9.4 terajoules per day, with significant reliability improvements [13] Market Data and Key Metrics Changes - Average realized gas prices increased to approximately $10 per gigajoule, a 12% rise compared to FY 2024 [4] - Over 30% of Orbost volumes were sold into spot markets, up 15% from the previous year [36] - The Sydney spot market often trades at a premium to the Victorian market, contributing to higher realized prices [37] Company Strategy and Development Direction - The company is focused on transformational growth through the ECSP, targeting to backfill the Athena gas plant with up to 90 terajoules a day by 2028 [41] - Continuous improvement programs have identified over 70 initiatives aimed at cost reductions and efficiency [5][16] - The company aims to maximize asset utilization and increase production capacity while maintaining reliability [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued profitability improvements due to strong gas market conditions and operational efficiencies [7][8] - The company is well-positioned to benefit from the growing energy demand and volatility in the National Electricity Market (NEM) [38] - Future cash flows are expected to increase, providing financial flexibility for growth and debt repayment [35] Other Important Information - The company maintained a strong safety performance with a total recordable injury frequency rate of 3.36 injuries per million hours worked, below industry benchmarks [9] - The company achieved carbon neutral certification for its operations, demonstrating commitment to environmental excellence [10] Q&A Session Summary Question: Guidance for FY 2026 and production rates from Orbost - Management clarified that the guidance reflects historical performance and does not include debottlenecking work [56][60] Question: Critical path to first supply from ECSP by 2028 - Management indicated that securing gas sales agreements and contracting services for subsea tie-ins are critical steps [65][66] Question: Impact of Woodside's entry into the Gippsland Basin - Management noted potential opportunities for collaboration and growth in domestic gas supply [68]

Financial Data and Key Metrics Changes - For FY '25, the company achieved an EBITDAF of $786 million, down from the originally guided $820 million, reflecting a 10% reduction in hydro production [4][11][12] - The NPAT was impacted by fair value adjustments on non-hedged accounted derivatives, while dividends increased by 3%, marking the seventeenth consecutive year of dividend growth [12][13][17] - The company provided FY '26 guidance of EBITDAF at $1 billion and a dividend of 25 cents per share, indicating a positive outlook [5][39] Business Line Data and Key Metrics Changes - The trading margin decreased by 75 basis points due to reduced generation, partially offset by improved sales [11] - The telecommunications segment added over 30,000 connections, contributing positively to margin and reducing customer churn [14] - The company maintained a flat operating expenditure compared to the prior year, with a focus on reducing costs to $370 million in the future [16][26] Market Data and Key Metrics Changes - The company experienced near-record low hydrology early in FY '25, leading to high electricity spot prices, but managed to stabilize the situation with strong market responses [20][21] - The hydrology in Lake Taupo showed significant fluctuations, with the company managing to improve its net position later in the year [23][24] - Strong inflows in Q4 provided a tailwind heading into FY '26, with hydro generation reaching a record of 566 gigawatt hours in July [23][24] Company Strategy and Development Direction - The company is focused on a refreshed strategy that emphasizes productivity and execution of its build program, targeting significant growth opportunities in wind and geothermal energy [2][3][6] - The strategy includes a commitment to invest in generation development, with plans to deliver 3.5 terawatt hours of new generation by 2030 [6][31] - The company aims to reduce operating costs per connection by 30% by FY '28, having already achieved 11% of that target [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in FY '25 due to hydrology but expressed confidence in the company's ability to manage volatility and deliver strong shareholder returns [41][42] - The company is optimistic about future growth driven by electrification and demand growth, which will create a robust pipeline for generation development [42][43] - Management emphasized the importance of building a resilient energy system and supporting vulnerable customers through targeted programs [28][29] Other Important Information - The company has a disciplined approach to balance sheet management, with a debt to EBITDA ratio of 2.5, maintaining a strong credit rating [35][36] - The company plans to invest approximately $600 million in growth capital expenditures focused on major projects and network upgrades [39] - The company is actively engaging with government initiatives and industry collaborations to address energy challenges and enhance market mechanisms [49][50] Q&A Session Summary Question: Update on geothermal opportunity of five terawatt hours - Management confirmed that updates will be provided as progress is made, emphasizing the priority of this initiative [45][46] Question: Concerns regarding government interventions - Management noted limited information from the government but expressed confidence in collaborative industry efforts to address energy challenges [48][49] Question: Details on the 50 megawatts signed with Genesis - Management clarified that the 50 megawatts is part of a strategic firming option, adding value to the portfolio [51][52] Question: Guidance on yield and portfolio impacts - Management indicated that yield impacts are being monitored, with expectations aligned with CPI [61] Question: Cost details on Taupo Gates upgrade - Management stated that the project is still in the solution phase, with specific costs not yet determined [63][64] Question: Clarification on OpEx targets - Management confirmed that the guidance includes premiums for HFOs and is reflected in the energy margin [66][67]

Financial Data and Key Metrics Changes - BHP achieved a record iron ore and copper production in the 2025 financial year, with copper production exceeding 2 million tons, reflecting a 28% volume growth over the past three years [4][21] - The underlying EBITDA margin remained healthy at 53%, maintaining an average margin exceeding 50% over the past twenty years [8][10] - The company incurred almost $10 billion in taxes and royalties against an underlying attributable profit of $10.2 billion, with a final dividend of $0.60 per share, resulting in a full year dividend of $5.6 billion [9][10] Business Line Data and Key Metrics Changes - Western Australia Iron Ore demonstrated a strong performance with record production and shipments, achieving an EBITDA margin of 63% and C1 costs of $17.29 per tonne, making it the lowest cost major iron ore producer globally [11][12] - In copper, BHP generated a record $12 billion of EBITDA, accounting for 45% of the group total, with an impressive margin of 59% [13] - Copper South Australia produced over 300,000 tonnes of copper in each of the last two years, with plans to double copper production [36] Market Data and Key Metrics Changes - China and India showed resilient economic and commodity demand growth, with China exceeding economic growth expectations and India projected to remain the fastest growing major economy [21][22] - The global focus on critical mineral supply and supply chain security is increasing, reflecting the mining sector's role in supporting national security and energy transition [23] Company Strategy and Development Direction - BHP's strategy focuses on being in highly attractive commodities with resilient demand and steep cost curves, optimizing for risk, value, and growth [2][3] - The company plans to sequence projects to enhance value and deliverability, with a revised capital and exploration spend target of around $11 billion for FY 2026 and 2027, which is $1 billion lower than previous guidance [18][39] - BHP aims to maintain a strong balance sheet and pay a minimum dividend of 50% of underlying attributable profit each reporting period [15] Management's Comments on Operating Environment and Future Outlook - The management noted that while global economies face policy uncertainty, demand for commodities remains resilient, particularly in China and India [21][22] - BHP expects to meet its 2030 target for operational greenhouse gas emissions despite a slowdown in the pace of development of decarbonization technology [17][20] Other Important Information - BHP contributed almost $47 billion globally through wages, taxes, royalties, community contributions, and payments to suppliers and shareholders [5] - The company achieved gender balance in its global workforce, with female representation at 41.3% [5] Q&A Session Summary Question: What are the expectations for copper production growth? - BHP's aspiration to double copper production remains unchanged, with stable operational performance supporting this growth [36] Question: How is BHP addressing the challenges in project execution? - The company is learning from experiences like the Janssen project to improve planning and execution, while maintaining a good track record of delivering major projects on time and budget [31] Question: What is BHP's outlook on the iron ore market? - BHP expects Chinese steel production to plateau and eventually decline, focusing on improving performance and reducing costs to sustain margins [32]

Financial Data and Key Metrics Changes - BHP achieved an underlying EBITDA margin of 53%, maintaining an average margin exceeding 50% over the past twenty years [8] - The company incurred almost $10 billion in taxes and royalties against an underlying attributable profit of $10.2 billion, resulting in a final dividend of $0.60 per share, with a payout ratio of 60% [9] - There was a 10% decline in EBITDA attributed solely to commodity prices, with unit costs improving nearly 5% year on year despite inflation [10][11] Business Line Data and Key Metrics Changes - Record production in copper exceeded 2 million tons, with a 28% volume growth over the past three years, contributing to a record EBITDA of $12 billion, representing 45% of the group total [4][13] - Western Australia Iron Ore demonstrated an EBITDA margin of 63%, with C1 costs at $17.29 per tonne, maintaining its position as the lowest cost major iron ore producer globally [11][12] - BMA saw a 5% increase in volumes despite weather-related disruptions, while Copper South Australia produced over 300,000 tons of copper in each of the last two years [12][36] Market Data and Key Metrics Changes - China and India showed resilient economic and commodity demand growth, with China exceeding economic growth expectations and India projected to remain the fastest growing major economy [20][21] - The global focus on critical mineral supply and supply chain security is increasing, reflecting the mining sector's role in national security and energy transition [22] Company Strategy and Development Direction - BHP's strategy focuses on being in highly attractive commodities with resilient demand and steep cost curves, optimizing for risk, value, and growth [2][3] - The company plans to reduce capital spend by $1 billion per year over the medium term and has revised its net debt target range to $10 billion to $20 billion [3][19] - BHP is committed to maintaining a strong balance sheet and paying a minimum dividend of 50% of underlying attributable profit each reporting period [15] Management's Comments on Operating Environment and Future Outlook - The management highlighted that while global policy uncertainty persists, demand for commodities remains resilient, particularly from China and India [20][21] - The company expects to achieve average production growth of 2.2% per annum over the next decade, driven by investments in attractive commodities and world-class assets [40][41] Other Important Information - BHP contributed nearly $47 billion globally through wages, taxes, royalties, and community contributions, achieving gender balance in its workforce with female representation at 41.3% [5] - The company has made significant safety improvements, achieving a 63% reduction in high potential injury frequency over the past five years [6] Q&A Session Summary Question: What are the expectations for copper production growth? - The company aspires to double copper production and expects to take a final investment decision on phase one of the smelter and refinery expansion in the 2028 financial year [36] Question: How is BHP addressing the challenges in project execution? - BHP acknowledged higher inflation and cost escalation in project execution and is applying learnings to improve planning and execution across projects [31] Question: What is the outlook for iron ore production? - The company maintains plans to grow iron ore production to 305 million tonnes per year by the end of the financial year 2028, with expectations to further improve unit costs [33]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $910 million, exceeding guidance and up more than 20% year-over-year and 4% sequentially [5][12] - Full fiscal year 2025 revenue was a record $3.4 billion, representing a 19% increase from the prior year [6][18] - Non-GAAP EPS for Q4 was $2.65, a new quarterly record, while full year non-GAAP EPS hit $10.17 [6][12] Business Line Data and Key Metrics Changes - Optical Communications revenue was $689 million in Q4, up 15% year-over-year and 5% sequentially [13] - Telecom revenue reached $412 million, a 46% increase from a year ago and 1% from Q3, driven by data center interconnect (DCI) products [9][13] - DCI revenue was reported for the first time at $107 million, representing 12% of overall revenue [13] - Datacom revenue was $277 million, down 12% year-over-year but up 10% sequentially [14] - Non-optical communications revenue was $221 million, a 41% increase year-over-year [16] Market Data and Key Metrics Changes - Telecom business momentum is expected to continue into Q1, particularly with the ramp-up of a next-generation system program [9][21] - Datacom demand is anticipated to surge, although temporary component supply challenges are being faced [10][21] - Automotive revenue was $128 million, showing a slight decline but better than expected [16] Company Strategy and Development Direction - The company is evaluating options to accelerate the completion of Building 10 to meet increasing customer demand [8][19] - A significant partnership with Amazon Web Services is expected to be a meaningful revenue driver in fiscal year 2026 [6][8] - The introduction of a new revenue category for high-performance computing (HPC) is planned for Q1 [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal year 2026, citing strong demand across multiple growth drivers [11][38] - Temporary supply constraints are expected to impact Datacom revenue in Q1, but these issues are anticipated to be short-lived [21][56] - The company remains confident in maintaining excellent execution while continuing to grow revenue and earnings [11][21] Other Important Information - The company returned $126 million to shareholders through a buyback program, with continued repurchases expected [8][20] - The effective GAAP tax rate was 6.5% for the quarter [18] Q&A Session Summary Question: Clarification on Datacom revenue dip - Management clarified that the expected dip in Datacom revenue for Q1 does not include contributions from the new HPC segment, which will be reported separately [26][27] Question: Future hyperscaler transceiver opportunities - Management indicated that future opportunities will predominantly focus on 1.6 terabit speeds, while 800 gig opportunities will still be pursued [28][30] Question: Growth prospects for fiscal year 2026 - Management remains optimistic about growth prospects, citing strong demand trends and new customer wins [36][39] Question: Impact of component shortages on Datacom - Management acknowledged that component shortages are significant enough to impact Datacom revenue but are expected to be temporary [56][105] Question: Amazon business potential - Management believes the Amazon PCB business could represent a significant opportunity, with revenue expected to ramp in fiscal Q1 [83][84]

Financial Data and Key Metrics Changes - Client assets (AUM and AUA) reached BRL 1,900 billion, reflecting a 17% year-over-year growth [3] - Active clients increased to 4.7 million, marking a 2% growth year-over-year [4] - Gross revenues for the quarter were BRL 4.7 billion, a 4% year-over-year increase [4] - Net income achieved a record high of BRL 1.321 billion, representing an 18% year-over-year growth [4] - Return on equity (ROE) was 24.4%, with a 223 basis points expansion compared to the same quarter last year [5] - Diluted EPS grew by 22% year-over-year, driven by a share buyback program [6] Business Line Data and Key Metrics Changes - Retail revenue posted BRL 3.5 billion, a 9% growth year-over-year, primarily driven by fixed income and new retail verticals [23] - Fixed income revenue grew by 20% year-over-year, reaching BRL 1 billion [24] - Corporate revenues increased by 14% year-over-year, while issuer services saw a 30% decline due to tough comparisons from the previous year [25] Market Data and Key Metrics Changes - The company reported a solid GCM pipeline for the second half of the year, indicating potential for revenue growth despite current challenges [8] - The corporate lending strategy is evolving, with a focus on originating credit to sell, rather than holding it on the balance sheet [46] Company Strategy and Development Direction - The company aims to enhance its ecosystem by integrating retail, institutional, and corporate divisions to generate investment opportunities [10] - There is a focus on diversifying channels and expanding the sales team to improve client engagement and product offerings [11] - The company is committed to maintaining a sustainable revenue model and long-term growth, positioning itself as a defensive business [11] Management's Comments on Operating Environment and Future Outlook - The management acknowledged that 2025 has been more challenging than anticipated, requiring increased efforts to maintain profitability [3] - There is confidence in achieving retail net new money averaging BRL 20 billion per quarter for the remainder of the year [9] - The management expects to see improvements in the corporate lending strategy and overall revenue growth in the second half of the year [62] Other Important Information - The company has a share buyback program of BRL 1 billion to be executed until next year [6] - The BIS ratio is at a comfortable level of 20.1%, indicating strong capital management [32] Q&A Session Summary Question: Capital generation and dividends - The management indicated that net income is growing faster than RWA, and they expect to distribute more than 50% of net income in dividends and buybacks [37][40] Question: Corporate lending strategy - The management confirmed that corporate lending is important but operates within a defined risk appetite, focusing on originating credit to sell [45][48] Question: Net new money initiatives - The management outlined several initiatives to increase net new money, including channel diversification and enhancing productivity of internal advisers [55][58] Question: Revenue growth and inflows - The management expressed confidence in achieving BRL 20 billion in net new money, citing improvements in the B2B channel and new product offerings [62][66] Question: Corporate portfolio dynamics - The management explained that the corporate credit portfolio is primarily for securitization and selling, and they are adapting to market dynamics affecting corporate net new money [71][72] Question: Non-people related expenses - The management acknowledged a significant increase in non-people expenses due to marketing and technology investments, which are expected to normalize [87][88]