Financial Data and Key Metrics Changes - For Q4 2025, diluted earnings per share increased by 23% year-over-year, while for the full year, it grew by 25% year-over-year [7] - Total operating revenue and other income rose by 107% year-over-year to $734 million in Q4, driven by the Mercury acquisition and increased managed receivables [12] - Managed receivables increased by 37% year-over-year, with new account originations up 73% for the year [8] Business Line Data and Key Metrics Changes - The acquisition of Mercury Financial effectively doubled the company's balance sheet to approximately $7 billion and added over 1.3 million customers [4] - The company acquired a $165 million retail credit portfolio from a competitor, enhancing its position in the second look point-of-sale market [7] - Purchase volume increased by 54% for Q4 year-over-year and by 32% for the full year [8] Market Data and Key Metrics Changes - The competitive landscape remains robust, with record solicitations leading to some softening in response rates and marketing efficiency [9] - The company has seen stable consumer behavior, with consistent payment performance and stable delinquency trends [8] Company Strategy and Development Direction - The Mercury acquisition is expected to enhance long-term earnings power through disciplined portfolio management and cost savings [5] - The company aims for long-term earnings growth of 20% or more annually while maintaining a return on average equity of 20% or greater [11] - The integration of Mercury is expected to be completed by early 2027, with ongoing realization of synergies and efficiencies [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of consumer behavior despite economic uncertainties, noting that consumers are managing their finances prudently [9] - The company anticipates a robust tax season, which may lead to a temporary slowdown in growth but will ultimately reduce delinquencies [31] - Management is closely monitoring macroeconomic factors, such as oil prices, and is prepared to adjust strategies based on consumer behavior [42] Other Important Information - The company ended the year with over $600 million in unrestricted cash and maintained a diversified funding model [15] - The integration of Mercury is progressing well, with operational efficiencies already being realized [6] Q&A Session Summary Question: Integration progress of Mercury - Management confirmed that the integration is ahead of schedule, with significant changes in portfolio terms already implemented [19][20] Question: Funding structure and macro concerns - Management stated that funding partners remain supportive, and there has been no deterioration in access to capital markets [25][26] Question: Tax refund season implications - Management expects a robust tax season, which may lead to paydowns affecting balances but ultimately reducing delinquencies [31] Question: Customer concentration risk - Management indicated that while some merchants have larger concentrations, the overall portfolio is diversified, mitigating concentration risk [35][36] Question: Fair value mark insights - Management explained that the fair value mark was adjusted conservatively due to the nature of the Mercury portfolio and expects improvements as the portfolio seasons [47][48]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported revenue of $6.2 million, exceeding guidance, compared to $6.7 million in Q4 2024, reflecting a decrease due to the exit of lower-margin business [7][11] - GAAP gross margin improved to 18.1% from -14.9% in Q4 2024, while non-GAAP gross margin rose to 25.6% from -5.2% in the same period [7][11] - For fiscal year 2025, revenue was $21.5 million, down $5.1 million from the previous year, with GAAP gross margin at 6.1% and non-GAAP gross margin at 14.3%, both showing significant improvement from fiscal year 2024 [11][12] Business Line Data and Key Metrics Changes - The transition of production from Singapore to Thailand has structurally reduced costs and improved manufacturing efficiency, contributing to margin expansion [5][18] - The company has completed its transition to a pure-play IoT company, enhancing focus on high-value IoT opportunities [18][19] Market Data and Key Metrics Changes - The company is scaling production to support IFCO's requirement for 100 million BLE smart labels per year, with ongoing opportunities to tag their full pool of over 400 million reusable containers [32][33] - The customer-driven opportunities in the pipeline are approximately 25% in healthcare, 25% in logistics, and 25% in food and beverage, with the remainder in various applications [36] Company Strategy and Development Direction - The company is focused on its Perform, Accelerate, and Transform strategy, aiming to strengthen core business, drive operational efficiency, and expand margins [3][17] - Key initiatives include the development of BLE technology, multi-component manufacturing, and strategic partnerships to enhance innovation and market positioning [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress made in 2025 and the operational foundation established for profitable growth in 2026 [17][29] - The company anticipates variability in gross margins as it scales production for the IFCO program and a new customer in Q1 2026, but expects overall margin expansion as operations stabilize [15][48] Other Important Information - The company exited Q4 2025 with $128.9 million in cash equivalents, reflecting a strong balance sheet [13][15] - The company has implemented new enterprise software systems to enhance operational efficiency and customer responsiveness [18] Q&A Session Summary Question: Insights on the IFCO opportunity and revenue potential - Management highlighted the exclusive agreement with IFCO, aiming to scale up to 100 million units per year, with a higher price point than average products, though gross margins will be below the target of 30% [32][33] Question: Breakdown of the new opportunity pipeline by end market - Approximately 25% of the current pipeline opportunities are in healthcare, logistics, and food and beverage, with the rest in various applications [36] Question: Contribution of gross margin drivers in 2026 - Management indicated that while there may be near-term variability in gross margins due to scaling for the IFCO project, they expect overall margin expansion as operations improve [48]

Financial Data and Key Metrics Changes - In fiscal year 2026, the company achieved total revenue of $961 million, representing a 24% year-over-year growth, with subscription revenue growing by 26% year-over-year [6][22] - Q4 total revenue reached $254 million, growing 21% year-over-year, while subscription revenue was $192 million, up 23% year-over-year [22][23] - Q4 gross transaction volume (GTV) was $19.8 billion, reflecting a 16% year-over-year growth [22] - Q4 platform gross margin improved to 80%, an increase of 330 basis points year-over-year [24] - Q4 operating income was $27.1 million, resulting in an operating margin of 10.7%, an improvement of 740 basis points year-over-year [25] Business Line Data and Key Metrics Changes - Subscription revenue growth was driven by strong performance in Pro, commercial, and new trades [23] - Professional services revenue for Q4 was $8.9 million, with net dollar retention exceeding 110% for the quarter [24] - The company exited FY 2026 with approximately 10,800 total active customers, a 14% increase year-over-year [24] Market Data and Key Metrics Changes - The company noted that GTV contribution from new customers remained consistent, but growth from existing customers was impacted by one fewer business day and unusual weather conditions [22] - The company is seeing healthy ongoing growth in its existing AI-native pro products and early promising signs from recently launched virtual agents [14] Company Strategy and Development Direction - The company aims to leverage its proprietary data set and AI capabilities to enhance its agentic operating system for the trades, focusing on automation and operational efficiency [15][20] - The strategic goals for FY 2027 include executing on multi-year growth factors, bringing the agentic operating system to life, and significantly improving execution velocity for customers [15] - The company is expanding its Max program, which integrates AI capabilities to enhance customer outcomes and drive revenue growth [12][14] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of AI in transforming operational workflows and improving customer outcomes, emphasizing the potential for significant revenue and margin expansion [9][10] - The management expressed confidence in the company's ability to attract top talent and invest in R&D to capitalize on growth opportunities [31][20] - The company anticipates continued strength in free cash flow and plans to invest aggressively in AI and internal tooling [27][25] Other Important Information - The company has made significant progress in its commercial and roofing initiatives, positioning itself as a leader in these markets [17][18] - The new Chief Technology and Product Officer, Abhishek Mathur, is expected to drive improvements in product development and execution velocity [20] Q&A Session Summary Question: Impact of Weather on Q4 Results - Management noted that Q4 was warmer than the previous year, with an ice storm affecting technician availability, impacting GTV growth [30] Question: Incremental Margin Commentary - Management explained that the high incremental margins were due to overperformance in usage and being behind in hiring, which limited reinvestment opportunities [31] Question: Sales Capacity and Growth - Management indicated that while there are opportunities to invest in sales, there is a natural limit to the number of deals that can be pursued in a given year [34] Question: Commercial Business Update - Management confirmed that the commercial segment is on track, with positive customer feedback and successful onboarding processes [37] Question: Scaling the Max Program - Management emphasized that the Max program is viewed as the future of the company, focusing on establishing product-market fit before scaling [40] Question: Adoption Curve for Max - Management discussed the phased approach to scaling Max, with a focus on efficient onboarding and delivering outcomes to customers [49] Question: Virtual Agents and Financial Impact - Management explained that virtual agents are designed to handle inbound calls, with early growth contributing to overall revenue, though still in early stages [64] Question: Partner Monetization - Management clarified that partner monetization is a growing part of the business, which may lead to usage revenue outpacing GTV growth [66] Question: Customer Adoption of AI - Management acknowledged a spectrum of customer willingness to adopt AI, with many eager to leverage the Max program for improved outcomes [68]

Financial Data and Key Metrics Changes - APEI's consolidated revenue for full year 2025 grew 4% to $649 million compared to 2024, despite challenges such as the mid-year sale of Graduate School USA 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% year-over-year, but exceeded guidance across all key financial metrics [19][11] Business Line Data and Key Metrics Changes - APUS revenue for Q4 2025 was $71 million, down 13.8% year-over-year due to the federal government shutdown [19] - Rasmussen's revenue for Q4 2025 increased 15.9% to $66.6 million, driven by 8.9% enrollment growth [20] - Hondros College of Nursing reported Q4 revenue of $20.7 million, up 9.2% year-over-year, with enrollment of 4,000 students, an increase of 8.1% [20] Market Data and Key Metrics Changes - APUS experienced a 41% increase in TA registrations in December 2025 compared to December 2024, indicating strong demand from military students despite the earlier registration interruption [13] - The nursing and healthcare segments showed strong performance, with Rasmussen and Hondros both achieving significant revenue growth [8][12] 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 combine its institutions into one system and launch new campuses in 2026, targeting markets with demonstrated demand [14][15] - APEI aims for organic revenue growth of $890 million to $925 million by 2029, with strategic investments in new campuses and potential acquisitions [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential of the company, citing strong demand for nursing education and military service members [32] - The company anticipates improved profitability and cash flow due to debt refinancing and cost savings [16] - Management highlighted the resilience of military students and the ability to navigate funding disruptions without significant operational impact [27][80] 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 become 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] Question: Priorities for cash use - Focus will be on organic growth, followed by opportunistic M&A, and then returning capital to shareholders [69]

Financial Data and Key Metrics Changes - Total revenue for the full year 2025 was $185.3 million, down 2% year-over-year from $189.9 million in 2024 [10] - Net loss from continuing operations was $57.3 million compared to $34 million in 2024, reflecting a non-cash goodwill impairment charge of $30.2 million [11] - Adjusted EBITDA improved 61% to $8.8 million compared to $5.5 million in 2024 [11] - Q4 revenue was $56.5 million, up 1% year-over-year [14] - Adjusted EBITDA for Q4 2025 was $12 million, compared to $10.9 million in Q4 2024 [15] Business Line Data and Key Metrics Changes - Advertising revenue for the full year declined 3% to $91.7 million, with programmatic advertising growing 7% to $69.6 million, representing 76% of total advertising revenue [10] - Content revenue increased 9% to $37 million, while studio revenue nearly tripled to $16.1 million [10] - In Q4, content revenue increased 56% to $14.7 million, driven by studio contributions [14] - Direct sold advertising declined 25% to $22.1 million for the full year and 5% to $7.4 million in Q4 [10][14] - Commerce and other revenue declined 8% to $56.5 million for the full year and 24% to $16.3 million in Q4 [11][14] Market Data and Key Metrics Changes - Time spent totaled 276.5 million hours for the full year, down 7% year-over-year [12] - In Q4, time spent was 70.3 million hours, down 11% year-over-year [15] Company Strategy and Development Direction - The company believes it is undervalued, with the current market value not reflecting the strength of its individual brands and assets [4] - The focus is on closing the gap between market valuation and intrinsic value, particularly through innovative work in AI and new product experiences [9] - The company is exploring strategic options to unlock value and address liquidity challenges [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the pessimistic view of digital media and legacy costs impacting market perception [5] - The company plans to demonstrate the value of its assets in concrete ways over the coming quarters [8] - Guidance for 2026 is being withheld due to ongoing evaluations of strategic opportunities [15] Other Important Information - The company generated close to $200 million from selling Complex and First We Feast, with these assets previously undervalued [4] - Total debt as of December 31, 2025, was $60.2 million, with expectations to use released funds from letters of credit to pay down debt [13] Q&A Session Summary Question: What is the company's outlook for 2026? - The company is withholding guidance for 2026 as it evaluates strategic opportunities that could materially impact its business shape [15]

Financial Data and Key Metrics Changes - Consolidated operating income for Q4 2025 was approximately $800,000, down from $1.5 million in Q4 2024, impacted by $400,000 in M&A-related expenses [7] - Revenue increased to $11.9 million in Q4 2025 from $10.8 million in Q4 2024 [10] - Adjusted EBITDA decreased to $1.1 million in Q4 2025 from $2.1 million in the prior year [10] - Net income was approximately $300,000 or $0.01 per diluted share, compared to a loss of approximately $200,000 or $0.01 per diluted share in Q4 2024 [10] Business Line Data and Key Metrics Changes - The industrial assets division reported operating income of approximately $1.1 million in Q4 2025, up from approximately $800,000 in the prior year [7] - The financial assets division reported operating income of approximately $900,000 in Q4 2025, down from $1.9 million in the prior year [7] - The ALT segment within the industrial assets division reported operating income of $538,000 in Q4 2025, compared to $276,000 in the prior year [8] Market Data and Key Metrics Changes - Consumer loan delinquencies remain elevated, particularly in credit card and auto loans, which are expected to lead to increased charge-offs moving forward [9] - The company noted a high volume of smaller asset transactions, as larger decisions were delayed due to ongoing economic uncertainty [8] Company Strategy and Development Direction - The company aims to define 2026 as the "year of the needle mover," focusing on larger transactions and aggressive M&A activity [5] - The recent acquisition of DebtX is expected to enhance capabilities in the financial asset segment and is anticipated to be accretive to both operating income and net income [10][18] - The company has moved into a new facility designed to accelerate growth and increase operational efficiency [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2026, citing a shift in sentiment among business development teams and an increase in deal flow [13] - There is a belief that the market is beginning to see a release of pent-up assets, which could lead to more significant transactions [21][27] - The company is preparing for a busy year, with expectations of increased auction activity and larger deals in the pipeline [30] Other Important Information - The company has a strong balance sheet with stockholders' equity of $67 million as of December 31, 2025, and a cash balance of $20.5 million [11] - The company plans to resume share repurchases after not repurchasing any shares in Q4 2025 [12] Q&A Session Summary Question: Clarification on DebtX acquisition accretion - The acquisition is expected to be accretive on both operating income and net income bases [18] Question: Seasonality of DebtX's business - DebtX typically has a strong Q4, driven primarily by banks looking to clean up their portfolios [19] Question: Exposure to private credit market - The DebtX acquisition provides exposure to the private credit market, particularly in the context of challenges in the commercial real estate sector [21] Question: Outlook for larger transactions in 2026 - Management noted a general hesitation in 2025 due to macroeconomic factors but is optimistic about the return of larger transactions in 2026 [26][27] Question: Specialty lending performance - The modestly negative performance in specialty lending was attributed to a lack of funding for larger loans [32]

Financial Data and Key Metrics Changes - Net sales for Q3 were $56.6 million, down 3.3% year-over-year, but ahead of expectations [5][16] - Gross margin was 41%, down 370 basis points from the previous year, impacted by new tariffs and an inventory reserve of $1.2 million [17][18] - GAAP EPS for Q3 was a loss of $0.32 compared to a gain of $0.01 last year, while non-GAAP EPS was $0.12 compared to $0.21 last year [20] - Adjusted EBITDA for the quarter was $3.3 million, down from $4.7 million in the same quarter last year [21] Business Line Data and Key Metrics Changes - Outdoor lifestyle category net sales increased 5.4% year-over-year to $35.3 million, driven by BOG and MEAT! Your Maker brands [16][8] - Shooting sports category net sales declined 15%, primarily due to softness in aiming solutions [16][8] - New products represented over 26% of net sales in the quarter, indicating strong innovation [9][10] Market Data and Key Metrics Changes - Domestic net sales decreased 3.4%, while international net sales remained flat compared to last year [17] - Traditional channel net sales decreased by 2.1%, and e-commerce net sales decreased by 4.6% [17] Company Strategy and Development Direction - The company is focused on disciplined execution of its strategy, concentrating resources on brands and product categories that create the most value [5][10] - The decision to divest the UST brand reflects a commitment to capital allocation and portfolio management [11][12] - The company aims to build connected product ecosystems around select growth brands to enhance consumer engagement and create recurring revenue opportunities [10] Management's Comments on Operating Environment and Future Outlook - Management believes the underlying operating model remains intact despite ongoing uncertainties in the fiscal environment [5] - The company maintains its full-year guidance for net sales and adjusted EBITDA, expecting net sales in the range of $191 million to $193 million [25][26] - Management noted that consumer behavior remains uncertain, with affluent consumers continuing to spend while lower-income consumers are pulling back [56] Other Important Information - The company ended the quarter with $10.4 million in cash and no debt, maintaining a strong balance sheet [21][24] - Capital expenditures for Q3 were $1.2 million, with a revised full-year CapEx expectation of $3.5 million to $4 million [24] Q&A Session Summary Question: Can you remind us what was pulled forward in the fourth quarter last year? - Retailers pulled in roughly $10 million in the last two weeks of Q4 [31] Question: What are the current inventory levels of your retail customers? - Retailers are under-ordering relative to demand, but the majority of the business is performing well [33] Question: What was the reason for the increase in inventories? - The main driver for the increase in inventories was the rise in tariffs [40] Question: Should we expect continued gross margin pressure in the first half of 2027? - Yes, continued gross margin pressure is expected due to capitalized tariffs rolling into the P&L [44] Question: Did the third quarter sales borrow from the fourth quarter? - No, there was no shifting of orders; all sales came through as expected [48] Question: Was the impairment solely related to UST? - Yes, 100% of the impairment was related to UST [52]

Financial Data and Key Metrics Changes - In Q4 2025, the company generated total investment income of $30 million and net investment income of $11.6 million, a decrease from $36.7 million and $15.7 million in Q3 2025 respectively [5][18] - The weighted average portfolio risk rating increased to 2.45 in Q4 2025 from 2.42 in Q3 2025, indicating a slight increase in perceived risk [18] - The total investment portfolio had a fair value of $927.4 million, down 2% from $946 million in Q3 2025 [18][22] - The net asset value (NAV) per share was $13.42 at the end of Q4, a decrease of 1% compared to $13.55 at the end of Q3 2025 [22] Business Line Data and Key Metrics Changes - The company completed 7 investments in new and existing portfolio companies totaling $42.9 million in funded loans during Q4 2025 [6][15] - Notable investments included a $20 million investment in a mobility company and a $10 million investment in a special purpose vehicle for consumer products [16] Market Data and Key Metrics Changes - The company noted ongoing tariff uncertainty, evolving interest rate policy, and geopolitical conflicts as significant market factors affecting operations in 2025 [7][8] - The competitive dynamics in the software and consumer sectors are providing attractive returns, despite the company’s cautious approach to underwriting [33] Company Strategy and Development Direction - The company is focused on enhancing the risk profile of its portfolio through diversification and smaller position sizes, while expanding its suite of financing solutions [8][9] - The acquisition of SWK Holdings is expected to diversify the portfolio and strengthen capabilities in healthcare and life sciences [9][26] - The company aims to maintain a leverage ratio between 1.2 and 1.3, considering economic conditions and capital market volatility [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline for new investments, attributing strength to the partnership with BC Partners and the upcoming SWK acquisition [32] - The company anticipates attractive opportunities across technology, healthcare, and select consumer sectors in the coming quarters [9][11] - Management acknowledged the challenges posed by elevated prepayments and the need for careful portfolio management [20][37] Other Important Information - The company’s total available liquidity was $395.2 million as of December 31, 2025, including unrestricted cash and cash equivalents [24] - The company plans to redeem a portion of its 7.5% notes and all of its 8% notes, which were due in 2027, to enhance its balance sheet [25] Q&A Session Summary Question: Can you discuss the current pipeline and opportunities? - Management noted that the pipeline is stronger than the previous year, driven by BC Partners, with expectations for at least one deal per quarter going forward [32][33] Question: What is the pro forma leverage number post-SWK acquisition? - The leverage ratio post-SWK is expected to be just under 1.2, with a target range of 1.2 to 1.3 moving forward [36] Question: Any updates on the Cadma joint venture? - Management confirmed ongoing efforts with Cadma, expecting the first distribution from the JV in Q2 2026 [39] Question: What changes have occurred in the SWK Holdings portfolio? - The SWK portfolio will include 13 loans with a fair value of around $235 million, alongside equity positions [44] Question: How will the stock repurchase program be affected post-acquisition? - The company plans to revisit the stock repurchase program after the SWK acquisition closes, likely in May [55][56]

Financial Data and Key Metrics Changes - The Oncology Institute achieved its first profitable quarter as a public company from an adjusted EBITDA perspective in Q4 2025, with a revenue increase of approximately 28% year-over-year, surpassing $500 million for the first time [4][5] - Total revenue for Q4 2025 was $142 million, representing a 41.6% year-over-year growth, driven by patient growth and pharmacy contributions [20] - Adjusted EBITDA was $147,000 in Q4 2025, improving from -$7.8 million in Q4 2024 [24] Business Line Data and Key Metrics Changes - The fee-for-service business grew 9% year-over-year from $136.2 million to $148.5 million, while the capitation business grew 17.2% year-over-year from $68.7 million to $80.5 million [17] - Pharmacy revenue grew 49.6% year-over-year from $179.9 million to $269.2 million, primarily due to improved prescription attachment rates [18] Market Data and Key Metrics Changes - The company expanded its capitated footprint by initiating 9 new capitated contracts during 2025, adding approximately 260,000 patient lives under management [5] - The partnership with Elevance Health in Florida ramped up, with approximately 70,000 lives under capitated arrangements by the end of 2025 [8] Company Strategy and Development Direction - The Oncology Institute aims to continue scaling its value-based care platform and expects over 80% growth in capitated revenue for 2026 [11] - The company plans to launch a proprietary new network portal in Q2 2026 to enhance engagement with providers and improve operational efficiencies [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow and manage industry-leading medical loss ratio (MLR) performance under its delegated capitation model [13] - The company views the potential lower rate environment for Medicare Advantage as a tailwind, as it allows for proactive engagement with payers seeking to improve care delivery [74] Other Important Information - The company reduced debt on its convertible preferred note by $24 million and ended the year with $33.6 million in cash [8] - The leadership team was strengthened with new appointments, including a Chief Clinical Officer and a Chief Administrative Officer [10] Q&A Session Summary Question: What drove the higher dispensing revenue in Q4? - The strong performance was driven by operational execution in mitigating leakage of prescriptions and strong patient encounter growth related to capitated contract growth [31] Question: Will the Elevance contract double in size in 2026? - Yes, that is the goal [32] Question: What is the size of the total addressable market for Elevance or Humana? - There is significant opportunity for growth, with many multiples of current capitated revenue available in the market [35] Question: Will there be a dip in profit margins due to ramping up capitated contracts? - A slight increase in MLR is expected for delegated contracts, but overall gross margins should not dip [44] Question: Can you provide details on the number of affiliated clinics? - The network has grown to over 200 providers in Florida, bringing the total to close to 300 combined [46] Question: What are the expectations for SG&A in 2026? - Improvements in SG&A as a percentage of revenue are expected, but not to the same degree as in 2025 due to growth investments [65]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue grew 116% to $71.9 million compared to $33.2 million in the prior year period, driven by strong performance in Life Solutions and higher Asset Management fees [31] - For the full year 2025, revenue increased 110% to $235.2 million compared to $111.9 million in the prior year [31] - Adjusted net income for Q4 2025 grew 71% to $23 million compared to $13.4 million in the prior year [32] - Adjusted EBITDA for Q4 2025 grew 132% to $38.6 million compared to $16.6 million in the prior year, with an adjusted EBITDA margin of 54% [33] - For the full year 2025, adjusted EBITDA increased 115% to $132.6 million compared to $61.6 million for the prior year, with an adjusted EBITDA margin of 56% [34] Business Line Data and Key Metrics Changes - The Life Solutions segment continues to generate impressive revenue growth, contributing significantly to overall revenue increases [31] - The Asset Management segment generated nearly $34 million in management fees in 2025, with over $3 billion in fee-paying AUM [11][31] - The technology services business also contributed to revenue growth, with the flagship product MVerify achieving 4x growth and tracking nearly 3 million lives [12] Market Data and Key Metrics Changes - The company reported a robust capital deployment of $230.7 million in Q4 2025, bringing full year deployment to $580.8 million, up 82% year-over-year [24][30] - The origination platform reviewed more than 10,000 qualified policies during the year, maintaining a close rate of 12% [24] Company Strategy and Development Direction - The company aims to grow recurring revenue from approximately 16% of total revenue today to 70% over the next five years, focusing on building a fee-related earnings base [29] - The strategic acquisition of a minority position in Manning & Napier is expected to create synergies across wealth management and life insurance [14][15] - The company is focused on expanding its asset-based finance strategy, which is projected to be a critical part of AUM expansion [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model and execution, highlighting 11 consecutive quarters of outperformance [5][38] - The company initiated its full year 2026 outlook for adjusted net income to be between $96 million and $104 million, implying growth of up to 22% compared to 2025 [36] - Management noted that the current market environment plays to the company's strengths, with increasing demand for longevity-linked assets [38] Other Important Information - The company has a disciplined capital allocation strategy, with a focus on maximizing long-term shareholder value through share repurchases and dividends [17] - The company launched its inaugural securitization in October, aimed at educating institutions about the asset class [19] Q&A Session Summary Question: Expectations for future securitization size and frequency - Management indicated that demand for securitization has increased and they are targeting a potentially larger securitization than the initial $50 million [44][46] Question: Capital needs and equity issuance - Management stated there is no intent to issue equity for policy purchases, as organic capital generation is sufficient to meet growth needs [51][52] Question: Capital deployment and revenue growth - Management clarified that the capital deployed in Q4 was successful, with a significant portion allocated to ETFs, which typically have lower management fees [56][57] Question: Growth targets and acquisition strategy - Management emphasized that growth will be driven by both organic and acquisition strategies, including the recent investment in Manning & Napier [66][67] Question: Value provided by ABL Tech to various markets - Management explained that ABL Tech offers valuable mortality verification data to pension funds and insurance companies, enhancing their operational efficiency [87]