Financial Data and Key Metrics Changes - Net sales for Q4 2025 increased by 13.7% to $115.6 million from $101.6 million in Q4 2024, driven by $8.2 million in volume growth and a $6.3 million favorable impact from pricing and product mix [10][12] - Gross profit for Q4 2025 was $39.3 million, compared to $39.8 million in the prior year quarter, with a gross margin of 34.0%, down from 39.2% [12][13] - Net income for Q4 2025 rose by 22.8% to $7.2 million, with a net income margin of 6.2%, up from 5.8% in the prior year quarter [15][16] - Adjusted EBITDA for Q4 2025 increased to $12.5 million from $11.3 million, with an adjusted EBITDA margin of 10.8%, compared to 11.1% in the prior year quarter [16] Business Line Data and Key Metrics Changes - Sales to chain accounts and distributors, the largest sales channel, increased by 17.5% in Q4 2025 [10] - Online sales rose by 1.9% year-over-year, while retail channel sales declined by 4.8% [11] - The new paper bag business category is gaining momentum, contributing to revenue growth and market share expansion [8][9] Market Data and Key Metrics Changes - Eco-friendly product sales grew to 37.3% of total revenue in Q4 2025, up from 34.5% in Q4 2024 [9] - The import mix during Q4 2025 consisted of 46% from Taiwan, 14% from China, 13% from the United States, and 11% each from Vietnam and Malaysia [6] Company Strategy and Development Direction - The company is focused on diversifying sourcing and optimizing margins, with a resilient global supply chain maintaining a gross margin of 34% despite higher tariff costs [7][10] - The strategy includes expanding the paper bag product line and pursuing additional customer accounts to drive revenue growth [8][20] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing trade volatility but emphasized the company's ability to deliver profitable growth [5] - For Q1 2026, the company expects net sales to increase by approximately 8%-10%, with gross margin anticipated to be within 34%-36% [19] - The company aims for low double-digit growth for the full year 2026, supported by new customer accounts and product offerings [19][30] Other Important Information - The company repurchased 137,374 shares at an average price of $21.74 per share, totaling $3.0 million, with $12.0 million remaining under the repurchase program [18] - The company ended 2025 with $91.0 million in working capital and maintained financial liquidity of $45.6 million [18] Q&A Session Summary Question: Outlook for 2026 and market assumptions - Management indicated that the outlook for 2026 includes market share gains, particularly in the new paper bag category, despite a competitive environment [23][24] Question: Impact of weather on Q1 revenue - Management confirmed that weather-related shutdowns in Texas and the East Coast affected Q1 sales, but trends are improving as conditions stabilize [26][27] Question: Full year revenue guidance and business opportunities - Management stated that the revenue guidance includes potential new accounts in the final confirmation stages, but conservatively accounts for testing phases that may delay revenue recognition [30] Question: Margin outlook and energy costs - Management confirmed that energy costs are factored into margin guidance, with expectations of a 10%-15% year-over-year increase in ocean freight shipping costs [40] Question: Demand for eco-friendly products - Management reported sustained demand for eco-friendly products, particularly molded fiber and paper bags, driven by regulatory changes and consumer preferences [50]

Financial Data and Key Metrics Changes - Adobe achieved revenue of $6.4 billion in Q1 FY 2026, representing an 11% year-over-year growth [11][32] - GAAP earnings per share (EPS) for the quarter was $4.60, and non-GAAP EPS was $6.06, reflecting 11% and 19% year-over-year growth, respectively [11][32] - Total Adobe ending Annual Recurring Revenue (ARR) reached $26.06 billion, growing 10.9% year-over-year [32] - Cash flows from operations in the quarter were a record $2.96 billion, with ending cash and short-term investments at $6.89 billion [33] Business Line Data and Key Metrics Changes - Subscription revenue for business professionals and consumers was $1.78 billion, increasing 15% year-over-year [32][33] - Creative and marketing professionals' subscription revenue was $4.39 billion, growing 11% year-over-year [17][32] - Monthly Active Users (MAU) for Acrobat and Express grew approximately 20% year-over-year, with Creative Premium MAU crossing 80 million, growing 50% year-over-year [35][14] Market Data and Key Metrics Changes - Adobe's global enterprise offerings saw over 30% year-over-year growth in Adobe Experience Platform (AEP) and applications [10] - The company reported strong momentum in AI-first applications, with ARR from these applications more than tripling year-over-year [11][36] - Firefly subscription and credit pack ending ARR grew 75% quarter-over-quarter, indicating strong adoption in content automation [18][36] Company Strategy and Development Direction - Adobe is focusing on an AI-driven business model, targeting business professionals and consumers through AI-infused product offerings [7][11] - The company aims to empower everyone to create, leveraging its leadership in creativity and productivity tools [6][12] - Adobe is expanding its product portfolio with new offerings like Adobe Acrobat Studio and Adobe Firefly, which are designed to enhance user experience and drive growth [8][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Adobe's ability to capitalize on AI opportunities, emphasizing the importance of customer-centric strategies and innovation [11][39] - The company anticipates continued growth in MAU and usage of AI functionalities, which are expected to drive future revenue [37][38] - Management acknowledged a decline in traditional stock business but remains focused on providing customers with choices between stock and generative AI offerings [37][39] Other Important Information - Adobe's acquisition of Semrush is expected to enhance its offerings in digital marketing and brand visibility [28] - The company serves 99 of the Fortune 100 and is a trusted partner for enterprises in customer experience management [23][24] Q&A Session Summary Question: Insights on RPO and Revenue Visibility - Dan Durn noted that the company is pleased with the momentum in RPO and does not foresee significant changes in revenue visibility [44][45] Question: CEO Transition Expectations - Shantanu Narayen highlighted the importance of product innovation and the board's role in selecting the next CEO, indicating the process may take a few months [49][80] Question: Generative Credit Consumption Trends - David Wadhwani explained that the increase in generative credit consumption is due to higher user engagement and integration of AI into existing workflows [53][54] Question: Revenue Acceleration Factors - Shantanu Narayen discussed the impact of new user adoption and the strength of enterprise solutions on revenue growth, clarifying the stock business's relatively small impact [59][63] Question: Future Growth Initiatives - Shantanu Narayen emphasized the focus on creativity and productivity as key growth drivers, with expectations for continued strong performance in AI-driven offerings [70][75]

Financial Data and Key Metrics Changes - Consolidated revenue for 2025 grew to $135 million, reflecting a 23.4% increase year-over-year, with Q4 revenue up 30.1% to $38.6 million [4][15] - Consolidated adjusted EBITDA for the year was $7.8 million, with Q4 adjusted EBITDA at $2.7 million [4][15] - Consolidated net loss for the year was $10.3 million, with a quarterly net loss of $1.6 million [15] Business Line Data and Key Metrics Changes - KSX segment revenue increased by 63.6% to $20.3 million for Q4 and was up 58.5% to $64.2 million for the year [15] - KSX adjusted EBITDA rose by 28.6% to $2.5 million for Q4 and was up 40.8% to $9.5 million for the year [15] - Extended warranty revenue increased by 6.1% to $18.3 million for Q4 and was up 2.8% to $70.8 million for the year [16] Market Data and Key Metrics Changes - Extended warranty cash sales grew by 11% for Q4 and 9% for the year, with claims costs moderating to a 4.4% increase for the year compared to 6.3% in the prior year [16][17] Company Strategy and Development Direction - The company aims for double-digit organic growth across both KSX and extended warranty segments in 2026, alongside a target of 3-5 acquisitions [5][10] - The strategy focuses on acquiring companies with recurring revenues and strong growth tailwinds, supported by a decentralized management model [3][7] - The company has completed six acquisitions in 2025 and launched a new skilled trades platform, positioning itself for accelerated growth [4][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong organic growth due to the characteristics of the businesses owned and the talent of operator leaders [7][10] - The focus for 2026 includes enhancing value through cross-selling and continued organic growth, with a robust acquisition pipeline [11][13] - Management highlighted the importance of creating a solid foundation for new businesses before pursuing aggressive growth [42] Other Important Information - The company had $8.3 million in cash and cash equivalents at year-end 2025, up from $5.5 million at the end of 2024, while total debt increased to $70.7 million [17][18] - The portfolio LTM adjusted EBITDA was reported at $22 million-$23 million, reflecting the trailing twelve-month performance of the operating businesses [4][19] Q&A Session Summary Question: Update on Digital Diagnostics - Management noted that Digital Diagnostics grew in the high single digits and emphasized the focus on building a solid foundation for future growth [30][42] Question: Acquisition Pipeline - Management confirmed a dual-track acquisition pipeline with strong deal flow and disciplined underwriting criteria [50] Question: Adjustments from Consolidated Adjusted EBITDA to Portfolio LTM EBITDA - The adjustments include pro forma results, differences in modified cash EBITDA for warranty companies, and corporate expenses [52][54] Question: Margin Expansion for Image Solutions and Skilled Trades - Management indicated that investments made in 2025 have set the stage for improved profitability and growth in 2026 [55][56] Question: Double-Digit Growth Drivers - Management expects universal growth across all businesses, driven by revenue growth, efficiency gains, and pricing strategies [57] Question: Tuck-In Acquisitions vs. New Platforms - Management anticipates targeting at least one to two new platform investments, with the remainder being tuck-in acquisitions [58]

Financial Data and Key Metrics Changes - The company ended 2025 with $245.8 million in cash and investments and no debt on its balance sheet [16][41] - Revenue for Q4 2025 was $21.8 million, with a full-year revenue of $55.2 million [43] - R&D expenses for Q4 2025 were $29.7 million, totaling $117.3 million for the full year [43] - G&A expenses for Q4 2025 were $11.2 million, with a full-year total of $68.7 million [43] - The net loss for Q4 2025 was $36.1 million, or $1.78 per share, while the full-year net loss was $164.1 million, or $9.73 per share [43][44] Business Line Data and Key Metrics Changes - The company is focusing on advancing its immunology and inflammation pipeline, particularly the Treg biologic, rezpegaldesleukin [6][7] - Positive results were achieved in phase 2b studies for atopic dermatitis and alopecia areata, validating the Treg mechanism [8][10] - The atopic dermatitis market is projected to grow to approximately $35 billion by the mid-2030s, with significant unmet needs in treatment [11][12] Market Data and Key Metrics Changes - In the U.S., over 15 million people suffer from moderate to severe atopic dermatitis, with only 10%-15% currently receiving biologic treatments [10] - Approximately 50% of patients fail to respond or lose treatment effect over time with current IL-13-based therapies, indicating a significant opportunity for REZPEG [11][12] Company Strategy and Development Direction - The company plans to initiate phase 3 studies for REZPEG in June 2026, with a goal to submit a BLA in 2029 [15][16] - The competitive landscape for late-stage novel mechanisms of action (MOAs) has narrowed, positioning REZPEG favorably [12] - The company aims to leverage its differentiated efficacy and safety profile to capture market share in the atopic dermatitis and alopecia areata markets [12][13] Management's Comments on Operating Environment and Future Outlook - Management highlighted the successful outcomes of phase 2 studies and the potential for REZPEG to provide complete disease clearance over time [9][10] - The company expressed confidence in its strong balance sheet, allowing for rapid advancement into phase 3 studies [16][41] - Management noted the importance of achieving a differentiated safety profile compared to existing treatments, particularly JAK inhibitors [13][56] Other Important Information - The company raised approximately $476 million in additional net cash through a public offering and ATM exercises [16][41] - The phase 3 program for REZPEG will evaluate both biologic-naive and treatment-experienced patients [27][61] Q&A Session Summary Question: What type of new data can be expected from the AAD conference presentation? - The upcoming presentation will showcase additional effects of treatment with REZPEG and potential for more patients to achieve SALT 20 responses [49][51] Question: Will ACQ-5 data be included in the phase 3 program? - ACQ-5 will be included in the phase 3 program, and efforts will be made to include it in the label [61] Question: What is the formulation or device for REZPEG being considered? - REZPEG will be launched in an auto-injector device, with weight-banded dosing for ease of administration [71] Question: How many patients completed the extension phase of the alopecia study? - There were 23 patients ongoing in the 16-week extension, and all treatment stops for all patients at either week 36 or week 52 [114] Question: How does REZPEG differentiate from other approaches in type 1 diabetes? - REZPEG offers an outpatient dosing regimen without the need for routine monitoring, contrasting with the IV infusion required for Tzield [108][109]

Financial Data and Key Metrics Changes - PagerDuty achieved $125 million in revenue for Q4, representing a 3% year-over-year increase, and a non-GAAP operating margin of 24%, both exceeding guidance [3][24] - Annual recurring revenue (ARR) ended at $499 million, with a 1% year-over-year growth [24] - GAAP net income for the year was $174 million, including a one-time tax benefit, marking the first full year of GAAP profitability [28] - Non-GAAP gross margin was 87%, surpassing the target range of 84%-86% [26] Business Line Data and Key Metrics Changes - Total platform customers grew to over 35,000, a 14% increase year-over-year, with significant growth in enterprise customers [4][24] - Customers spending over $1 million in ARR increased to 79, up 10% year-over-year, while those spending over $100,000 annually grew to 861, reflecting a 1% increase [6][25] - New and expansion bookings in Q4 were the strongest for the fiscal year, up 6% year-over-year and 37% sequentially [5] Market Data and Key Metrics Changes - International revenue increased by 6% year-over-year, contributing 29% of total revenue [24] - The company noted a shift towards larger enterprise relationships, with 72% of total ARR coming from the $100,000 cohort [25][29] Company Strategy and Development Direction - PagerDuty aims for a long-term target of a 30% non-GAAP operating margin by leveraging operational AI and driving customer consumption of its AI platform [4][21] - The company is transitioning to a consumption-based pricing model to reduce reliance on seat-based pricing, which is expected to enhance customer engagement and retention [30][60] - The focus is on expanding the platform's role in broader operational workflows beyond incident response, including AI operations and automation [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges and emphasized the importance of resilience and automation in customer operations [9][21] - The outlook for FY 2027 includes expectations for flat revenue growth but with improved earnings quality and continued margin expansion [30][32] - Management highlighted the importance of AI in driving operational efficiency and resilience, positioning PagerDuty as a critical partner for enterprises [9][50] Other Important Information - The company repurchased approximately 10 million shares under a $200 million repurchase plan, reflecting confidence in its valuation [23][24] - PagerDuty received industry recognition, ranking first in Built In's Best Places to Work list and being named a representative vendor in Gartner's reports on AI agents [18] Q&A Session Summary Question: Feedback on flex pricing and its adoption - Management noted positive reception of flex pricing from large enterprises, which appreciate reduced friction and access to new products [35] Question: Strategy for creating shareholder value - The focus is on high-value enterprise customers and re-accelerating growth while maintaining operational efficiency [39] Question: Customer hiring plans and their impact - Conversations indicate a shift towards prioritizing enterprise resilience and automation over traditional hiring metrics [80] Question: Insights on customer churn in the mid-range - Churn is mixed, with some customers downgrading due to economic pressures, but there is room for aggressive pricing strategies [74]

Financial Data and Key Metrics Changes - APEI's consolidated revenue for full year 2025 grew by 4% to $649 million compared to 2024, despite challenges such as the mid-year sale of Graduate School U.S.A. and a registration interruption at APUS [9][23] - Adjusted EBITDA for full year 2025 reached $85.7 million, up 19% from 2024, exceeding both revised and initial guidance [9][24] - Fourth quarter revenue was $158.3 million, down 3.5% from $164.1 million in the prior year, primarily due to the federal government shutdown [19][21] Business Line Data and Key Metrics Changes - APUS revenue in Q4 2025 was $71 million, down 13.8% year-over-year, with net course registrations decreasing by 15.3% [19][20] - Rasmussen's revenue for Q4 2025 increased by 15.9% to $66.6 million, driven by an 8.9% growth in enrollment [20] - Hondros College of Nursing reported Q4 revenue of $20.7 million, up 9.2% year-over-year, with enrollment increasing by 8.1% [20] Market Data and Key Metrics Changes - APUS experienced a 41% increase in TA registrations in December 2025 compared to December 2024, following the end of the government shutdown [13] - The military and veteran channels showed high teen registration growth, indicating strong demand despite funding disruptions [13][30] Company Strategy and Development Direction - APEI is focused on a four-year growth strategy introduced at the recent Investor Day, aiming to simplify and strengthen the business [8] - The company plans to launch two new campuses in 2026, expanding into markets with demonstrated demand [14] - APEI is targeting revenue growth of $685 million to $695 million for 2026, with adjusted EBITDA between $91.5 million and $100.5 million [16][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying strength of the business, despite external challenges such as the government shutdown [9][19] - The company anticipates improved profitability and cash flow due to debt refinancing and cost savings [16][26] - Management remains optimistic about long-term growth potential, projecting organic revenue of $890 million to $925 million by 2029 [31][32] Other Important Information - APEI's board authorized a $50 million share repurchase program to offset dilution from stock-based compensation [27] - The company ended 2025 with a strong balance sheet, including cash equivalents of $176.5 million and total debt of $96.4 million [25][26] Q&A Session Summary Question: CapEx cadence for new campus openings - Management expects most CapEx related to new campuses will occur in the second half of the year [35][38] Question: Expected revenue and margin for new campuses - New campuses are expected to generate about $12 million in revenue with a 35% EBITDA margin, taking 8-18 months to reach cash flow positive [38] Question: Marketing strategy post-institution combination - Brands will remain present in local markets, with best practices shared across institutions to optimize marketing spend [54] Question: Impact of government shutdown on Q4 revenue - Actual impact was estimated at $12 million to $15 million short due to a strong December performance [110][117]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported revenue of $175 million, a decline of approximately 5% from $185 million in 2024, with fourth-quarter revenue at $43 million, down 10% year-over-year [4][14] - Adjusted EBITDA for the full year was $40 million, compared to $43 million in 2024, reflecting the company's cost control efforts despite revenue decline [17] - The company ended the year with $62 million in cash, marking an almost 20% increase from the end of 2024 [4] Business Line Data and Key Metrics Changes - Average paying clients in the fourth quarter were 5,120, down approximately 2% year-over-year, while for the full year, average paying clients were 5,190, up 2% compared to 2024 [14][15] - Average revenue per paying client for both the fourth quarter and the full year was approximately $2,800, down from prior year levels due to lower spending from existing clients [15] Market Data and Key Metrics Changes - The company experienced severe pricing compression and competition from illicit markets, particularly affecting mature markets like California and Michigan, where total retail sales and average retail prices declined year-over-year [13] - Encouraging growth was noted in newer markets such as New York and Ohio, where client penetration was prioritized, although this growth did not offset pressures in mature markets [14] Company Strategy and Development Direction - The company remains focused on enhancing product offerings and deepening relationships with large California-based clients and MSO partners, while also improving marketplace experience [8] - Investments are planned across teams and technology to build for the future, despite the challenges posed by industry consolidation and regulatory limitations [8][10] Management's Comments on Operating Environment and Future Outlook - Management highlighted that many industry dynamics affecting clients in 2025 are expected to persist into 2026, with first-quarter revenue anticipated to decline sequentially by mid- to high-single digits from the fourth quarter [17] - The company is committed to preserving financial flexibility and disciplined capital allocation while assessing future opportunities [18] Other Important Information - The company recorded a non-cash asset impairment charge of approximately $7.8 million in the fourth quarter, primarily related to goodwill [16] - Management expressed optimism about the potential benefits of cannabis rescheduling, although it will not immediately change the company's operational capabilities [10][11] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session. The call concluded without further inquiries [19]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $69.3 million, exceeding the high end of guidance, driven by higher variable revenue [21] - Adjusted EBITDA for Q4 was $10.8 million, also above the high end of guidance, attributed to cost restructuring and disciplined operational execution [21] - Recurring revenue constituted 89% of total revenue, with a decline in professional services revenue by 36% year-over-year [21][22] - Average revenue per customer increased by 9% year-over-year to $680,000 [22] - Cash on the balance sheet at the end of Q4 was $95 million [22] Business Line Data and Key Metrics Changes - Revenue from hosted services was $51 million, down 15% year-over-year [21] - Professional services revenue was $8.3 million, reflecting a significant decline [21] - The launch of Syntrix is expected to drive upsell opportunities and improve retention capabilities [45] Market Data and Key Metrics Changes - The company signed 40 deals in Q4, including 4 new logos and 36 expansions, indicating a slight increase in total deal value [18] - Strong adoption of the platform was noted in regulated industries such as banking, telecommunications, and airlines [19] - Over 20% of all conversations in Q4 leveraged Generative AI tools, indicating deeper AI adoption [8] Company Strategy and Development Direction - The company is focused on three primary areas: customer growth and retention, innovation in the Conversational Cloud platform, and expanding technology partnerships [4] - Syntrix is positioned as a comprehensive assurance layer for AI deployments, addressing market gaps in trust and compliance [6][7] - The partnership with Google Cloud is expected to simplify procurement and enhance customer retention, with a material fraction of revenue anticipated to flow through this channel by the end of 2026 [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive net new ARR in the second half of 2026, despite expected revenue declines throughout the year [16][23] - The company aims to transition from stabilization to targeted execution, leveraging high-efficiency channels for customer retention and future growth [25] - The focus remains on disciplined execution of strategic priorities, including product innovation and strengthening the partner network [25] Other Important Information - The company expects revenue for the full year 2026 to range from $195 million to $207 million, with approximately 92% expected to be recurring [23] - Adjusted EBITDA for 2026 is projected to range from a loss of $4 million to a gain of $7 million [24] Q&A Session Summary Question: Can you walk us through the decrease in total OpEx for Q4? - The decrease was primarily due to a large restructuring executed in the prior quarter, with some one-time items but mainly structural changes [29] Question: How do you expect net new ARR to grow while revenue declines? - Historical customer losses will offset the positive revenue from net new ARR, leading to sequential revenue declines [31] Question: Can you expand on the demand for Syntrix and its development? - Demand initially focused on simulation capabilities, evolving into a broader solution addressing compliance and governance challenges in AI deployments [36][38] Question: What is the pricing model for Syntrix? - The pricing model is conversation-based, reflecting consumption rather than seat-based, and is expected to drive upsell opportunities [43][45] Question: How does Google Cloud Marketplace impact your sales strategy? - It serves as a retention lever, simplifying procurement and potentially increasing renewals and new opportunities through aligned incentives [47][51]

Financial Data and Key Metrics Changes - In Q4 2025, EverCommerce generated revenue of $151.2 million, representing a 5.2% year-over-year growth [6][20] - Adjusted EBITDA for the quarter was $44.2 million, with a margin of 29.2%, reflecting operational discipline and efficiency improvements [21][22] - Pro forma revenue for the last 12 months was $591.7 million, indicating a 6.4% year-over-year growth [8][20] Business Line Data and Key Metrics Changes - EverHealth and EverPro verticals were highlighted as key areas of focus, with both verticals contributing approximately 95% of consolidated revenue [7][8] - Multi-solution customers grew by 26% year-over-year, with 286,000 customers enabled for more than one solution [16] - The top six payment solutions saw a 17.4% year-over-year growth in total payment volume (TPV) [17] Market Data and Key Metrics Changes - The annualized total payments volume (TPV) expanded to $13 billion, showcasing significant market engagement [8] - The company reported a net revenue retention rate of 96%, with multi-solution customers generating NRR above 100% [17] Company Strategy and Development Direction - The company is focused on embedding AI across its platforms to enhance customer experiences and operational efficiency [63] - Investments in AI-driven features and workflows are expected to drive durable growth and improve financial performance [26][63] - The acquisition of ZyraTalk is seen as a foundational step towards enhancing AI capabilities within the company's offerings [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects for 2026, driven by AI investments and improved customer engagement [36][39] - The company anticipates continued operational leverage and efficiency gains through AI integration [15][63] - Seasonal performance is expected to influence revenue growth, with stronger performance anticipated in Q2 and Q3 [26][58] Other Important Information - The company repurchased approximately 2.5 million shares for $24.8 million during Q4 2025, with a remaining repurchase authorization of $47.7 million [25] - The leadership update included Matt Feierstein taking on the role of CEO for EverPro, emphasizing continuity in strategy execution [18] Q&A Session Summary Question: Customer appetite for AI solutions - Management noted strong uptake in AI functionalities across EverPro, with positive early sales from ZyraTalk integrations [30][32] Question: 2026 growth outlook assumptions - The company highlighted investments in AI and customer engagement as key drivers for growth, expecting re-acceleration throughout the year [36][39] Question: Payments revenue decline explanation - Management clarified that the decline in non-top six payment solutions was not related to the MarTech divestiture, focusing instead on the growth of the top six solutions [42][44] Question: Competitive advantages in the AI landscape - Management emphasized the importance of deep niche vertical expertise and a large customer base as competitive advantages in the evolving AI market [45][48]

Financial Data and Key Metrics Changes - The company ended 2025 with $245.8 million in cash and investments and no debt on its balance sheet [16][41] - Revenue for Q4 2025 was $21.8 million, with a full-year revenue of $55.2 million [43] - R&D expenses for Q4 2025 were $29.7 million, totaling $117.3 million for the full year [43] - The net loss for Q4 2025 was $36.1 million, resulting in a basic and diluted net loss per share of $1.78, while the full-year net loss was $164.1 million, or $9.73 per share [43][44] Business Line Data and Key Metrics Changes - The company is focusing on advancing its immunology and inflammation pipeline programs, particularly the Treg biologic, rezpegaldesleukin (REZPEG) [6][7] - Positive results were achieved in phase two studies for REZPEG in atopic dermatitis and alopecia areata, validating its novel regulatory T-cell mechanism [8][10] - The atopic dermatitis market is projected to grow to approximately $35 billion by the mid-2030s, with only 10%-15% of patients currently receiving biologic treatments [11][12] Market Data and Key Metrics Changes - There are over 15 million people in the U.S. with moderate to severe atopic dermatitis, presenting a significant market opportunity [10] - The competitive landscape for late-stage novel mechanisms of action (MOAs) has narrowed, positioning REZPEG favorably [12] - The company anticipates that the atopic dermatitis market will see increased adoption of biologics, with a significant opportunity for REZPEG due to its differentiated efficacy and safety profile [11][12] Company Strategy and Development Direction - The company plans to randomize the first patient in phase three studies for atopic dermatitis in June 2026, with a goal to submit a Biologics License Application (BLA) in 2029 [15][16] - REZPEG is positioned as a potential first-in-class biologic in alopecia areata, with plans to advance into phase three following positive phase two results [29][32] - The company is exploring additional indications for REZPEG, including skin and autoimmune diseases, food allergies, and asthma [36][107] Management's Comments on Operating Environment and Future Outlook - Management highlighted the successful outcomes from phase two studies as a pivotal moment for the company, indicating strong potential for REZPEG in treating inflammatory diseases [8][10] - The management expressed confidence in the differentiated safety profile of REZPEG compared to existing treatments, particularly JAK inhibitors, which have significant safety concerns [13][56] - The company is optimistic about the future growth of the atopic dermatitis market and the potential for REZPEG to capture a significant share due to its unique mechanism of action [11][12][125] Other Important Information - The company raised approximately $476 million in additional net cash through a public offering and an ATM facility, strengthening its balance sheet for future investments [16][41] - The company has established a strong safety database for REZPEG, with over 1,000 patients treated to date [26][41] Q&A Session Summary Question: What type of new data could be seen at the AAD conference regarding the alopecia areata study? - Management indicated that the upcoming presentation will showcase additional effects of treatment with REZPEG and the potential for more patients to achieve SALT 20 responses [48][51] Question: Will the ACQ-5 data be included in the phase three program for atopic dermatitis? - Management confirmed that ACQ-5 will be included in the phase three program, with efforts to include it in the label [61] Question: What is the formulation or device for REZPEG being considered for commercial launch? - The plan is to launch REZPEG in an auto-injector device, with weight-banded dosing for ease of administration [71][72] Question: How does REZPEG differentiate from other approaches in type one diabetes? - Management highlighted that REZPEG offers an outpatient dosing regimen without the need for routine monitoring, contrasting with the more complex administration of existing therapies [108][109]