Financial Data and Key Metrics Changes - Revenue for Q2 2025 was €614.2 million, representing a 4.5% year-over-year growth, with a 1% growth in organic constant currency and 0.5% sequential growth [6][30] - Non-IFRS adjusted operating margin was 15% for the quarter, maintaining stability despite foreign exchange headwinds [30] - Non-IFRS adjusted diluted EPS for the quarter was $1.53, an increase from $1.51 in the previous year [30] - Free cash flow for the quarter was negative $2.9 million, an improvement from negative $28 million in the same period last year [31] Business Line Data and Key Metrics Changes - The AI Pods subscription model has gained traction, with 18 clients adopting this new model, contributing significantly to recent pipeline growth [8][41] - The company is focusing on high-value clients in sectors such as healthcare, financial services, consumer packaged goods (CPG), and gaming [6][30] Market Data and Key Metrics Changes - North America accounted for 54.1% of revenue, Latin America 19.7%, and Europe 19.6%, with Europe being the fastest-growing region at 8.1% sequentially [16] - New markets grew 84% year-over-year, currently representing 6.6% of total revenue, with the Middle East leading this surge [17] Company Strategy and Development Direction - The company is implementing a business optimization plan to align workforce skills with strategic priorities, resulting in a reduction of approximately 1,000 employees or 3% of the workforce [33] - The focus is on building a structurally agile organization to compete effectively in an evolving landscape while delivering strong results for shareholders [6][30] - The company aims to enhance its AI capabilities through partnerships with major AI leaders like OpenAI and AWS, integrating advanced models into its offerings [14][28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding pipeline conversion, noting that while the macro environment remains uncertain, there are positive signs of recovery in North America and Latin America [48][72] - The company expects revenue for the full year 2025 to be at least $2.445 billion, representing a 1.2% year-over-year growth [35] Other Important Information - The company recorded a one-time charge of $47.6 million in Q2 due to the optimization plan, which is expected to generate $80 million in annualized savings [33] - The AI Pods model is designed to provide guaranteed time and cost savings, shifting the value proposition to concrete results [8][30] Q&A Session Summary Question: Can you provide more details on the AI-based delivery model and subscription side? - The company has 18 paying customers under the subscription model, which has been well received, generating code and software needed by clients [41][42] Question: How far along are the initial changes from the optimization plan? - Additional reductions are expected in Q3, with most of the plan already implemented [50][51] Question: How is the creative performance of the GUT relative to other studios? - The creative pillar has been growing nicely, with no significant impact from AI on high-level strategic work [56][59] Question: Is the enterprise AI platform creating enhanced stickiness with customers? - The enterprise AI platform is becoming essential for clients, integrating complex AI ecosystems and enhancing client engagement [64][66] Question: Can you discuss the revised growth outlook and assumptions? - The revised outlook reflects stabilization in Latin America and a positive trend in the pipeline, with expectations for recovery in the US market [78][80]

Financial Data and Key Metrics Changes - The net loss for the second quarter of 2025 was $25.4 million or $0.43 per share, compared to a net loss of $33.5 million or $0.58 per share in the first quarter of the same year [9][24] - As of June 30, 2025, the company had $28.7 million in cash and investments, bolstered by a registered direct offering that raised $20.6 million in net proceeds [9][10] - Total operating expenses from continuing operations for the second quarter were $32.4 million, a decrease of $2.6 million from the first quarter [26] Business Line Data and Key Metrics Changes - Research and development expenses in the second quarter were primarily focused on Zaltanopart and narsoplimab [27] - Interest expense for the second quarter was near zero, primarily due to an $8.5 million non-cash remeasurement adjustment related to the DRI Amidrea royalty obligation [27] Market Data and Key Metrics Changes - The global market for paroxysmal nocturnal hemoglobinuria (PNH) is projected to grow at 11% annually, reaching over $10 billion by February 2032 [20] - The complement inhibitor segment is expected to more than double from $2.2 billion today to $4.7 billion over the next seven years [20] Company Strategy and Development Direction - The company is focused on the anticipated approval and launch of narsoplimab, targeting the initial indication of stem cell transplant-associated thrombotic microangiopathy (TATMA) [11][12] - The company aims to leverage its experienced field marketing team and skilled sales force to drive rapid uptake of narsoplimab upon approval [18] - Discussions regarding potential asset acquisition and licensing agreements involving clinical assets are ongoing, with one transaction expected to be a multibillion-dollar deal [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the approval process for narsoplimab, with the FDA indicating that labeling discussions are planned to begin no later than October 2025 [13] - The company is optimistic about the market opportunity for narsoplimab, especially given the safety and efficacy data compared to existing treatments [14][15] Other Important Information - The company has adequate supply for narsoplimab for the first several years post-launch, ensuring no supply challenges [53] - The company is advancing its oncology platform, including IND enabling studies for its Oncotox biologics program targeting acute myeloid leukemia (AML) [23] Q&A Session Summary Question: Comparison of narsoplimab launch to Omidria - Management noted that the market for narsoplimab is significantly more focused than that for Omidria, with fewer salespeople needed due to the limited number of transplant centers [37][38] Question: Comfort level of clinicians regarding narsoplimab - Physicians are eagerly awaiting the approval of narsoplimab, viewing it as a much-needed solution for patients facing lethal complications post-transplant [44] Question: Anticipated launch timeline post-approval - If approved in December, the launch would occur in the first quarter of the following year, with substantial supply already in place [50][51] Question: FDA's request leading to PDUFA delay - The FDA requested additional analyses, which were extensive, leading to the three-month delay in the PDUFA date [58][60] Question: Potential partnerships - There is substantial interest in partnerships across the company's programs, but specific details are limited due to confidentiality requirements [61]

Financial Data and Key Metrics Changes - The company recorded its first revenue of just over $90,000 in Q2 2025, marking a significant milestone in its history [22] - The net loss for the quarter was $4,690,000, compared to $1,460,000 for the same quarter in 2024 and $1,980,000 for Q1 2025 [22][23] - Operating expenses increased to $4,630,000 from $1,480,000 in the same quarter last year, largely due to costs associated with the public listing [22][23] - The cash balance at the end of the quarter was $607,000, an increase of $478,000 from the previous balance [23][24] Business Line Data and Key Metrics Changes - The company is focused on three key areas: commercialization and operational excellence, patents and partnerships, and building recurring value [10][12] - The partnership with Hancock Health is a multi-year project aimed at piloting the ArrivePoints in hospitals for secure robotic delivery [25][29] Market Data and Key Metrics Changes - The company is targeting the $191 billion US package delivery market, with a focus on integrating drones into the national airspace [8] - The pilot programs launched with hospitals, retail partners, and municipalities are validating the capabilities of the platform [6][29] Company Strategy and Development Direction - The company aims to transition from pilot projects to defining and dominating key market verticals, focusing on building a defensible mode of intellectual property and strategic partnerships [6][7] - The five-year plan includes scaling production to 10,000 units annually by year four and 100,000 units by year five, with a goal of a tenfold increase in company value [19][26] - The strategy emphasizes a platform as a service model, where revenue grows with every delivery and new ArrivePoint deployed [12][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current market conditions and the company's positioning within the autonomous delivery landscape [14][40] - The recent regulatory changes regarding drone operations are seen as a watershed moment for innovation in the logistics sector [8][29] Other Important Information - The company has filed two additional patent applications and secured a cornerstone patent for its intelligent chain of custody delivery network [32][35] - The management team is focused on building a scalable and defensible business model, with a disciplined approach to capital use [21][25] Q&A Session Summary Question: How does the company plan to transition from its current pilot-centric pre-revenue model to a scalable profitable business? - The COO outlined a strategic five-year plan focusing on product development and partnerships to achieve scalability [46] Question: How will your platform as a service model work? - The COO explained that the model will include a network as a service fee, a marketplace for demand resolution, and AI platform services [48][49] Question: Do you anticipate the new tariffs will materially affect your supply chain costs? - The Chief Strategy Officer mentioned plans to onshore production to the US to mitigate potential tariff impacts [81] Question: What would help Arrive AI succeed in the short term and long term? - The Chief Strategy Officer highlighted the importance of regulatory changes allowing beyond visual line of sight operations for drones [91] Question: What are the biggest risks you see in the next few quarters? - The CFO noted that success will depend on the number of pilots deployed and the learnings from those deployments [96] Question: How is Arrive AI positioned to weather economic downturns? - The CFO emphasized focusing on internal strategies and deployments rather than external market volatility [101] Question: What are your thoughts on potential partnerships with major delivery companies? - The CEO indicated ongoing conversations with various companies but could not disclose specifics due to NDAs [106]

Financial Data and Key Metrics Changes - Revenue increased by 150% year over year to $8.4 million, driven by significant sales and rentals of the mobile EV charging platform, eBoost [4][13] - Non-GAAP operating income from continuing operations was $218,000, compared to a non-GAAP operating loss of $137,000 in the same quarter last year, marking a year-over-year improvement of $355,000 [14] - Net loss from continuing operations improved to $1.2 million from $1.7 million in the previous year [14] - Cash on hand decreased to $18 million from $41.6 million at the end of 2024, primarily due to a special cash dividend and tax payments [15] Business Line Data and Key Metrics Changes - The eBoost order for a large public school district significantly contributed to revenue growth, with gross profit on these units more than doubling in the second quarter [5][13] - The company delivered initial units under the SparkCharge agreement, which could be worth up to $10 million, reflecting increasing demand for mobile EV charging solutions [5] Market Data and Key Metrics Changes - Total backlog was approximately $18 million, a decline of 23% compared to the prior quarter due to fulfillment of larger orders [6][7] - The electric school bus market continues to show strong momentum, with the school district scheduled to receive an additional 600 electric school buses over the next two years [5] Company Strategy and Development Direction - The company is focused on scaling its core business and launching HomeBoost, a residential and light commercial power system, expected to expand its addressable market [8][9] - The company sees growth potential in autonomous mobility, particularly in the robotaxi segment, which aligns with its mobile charging platform [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business and the demand environment, with a reaffirmation of revenue guidance for the full year of $27 million to $29 million [16][10] - The company is optimistic about the breadth and quality of future opportunities, particularly in government agencies and transit authorities [5][10] Other Important Information - The company is preparing to launch HomeBoost, which integrates a natural gas engine with optional DC fast charging, expected to be a key growth driver for 2026 and beyond [9] - Management emphasized the importance of operational efficiency and productivity gains in achieving profitability [10] Q&A Session Summary Question: Details on the eBoost order with the charging services company - Management explained that the order could be up to $10 million, with variables based on size and timing of delivery [22] Question: Insights on the sales pipeline and order visibility - Management noted that government agencies move at different paces, while private businesses tend to be quicker in decision-making [26] Question: Launch milestones for HomeBoost - The launch has been delayed due to internal adjustments, with expectations for orders to begin in 2025 and accelerate in 2026 [30] Question: Future margin expectations - Management indicated that margins should remain stable or improve, with no expected erosion [34] Question: Revenue concentration and market evolution - California remains the primary market, but success with HomeBoost could diversify revenue sources [40] Question: Competitive landscape for eBoost and HomeBoost - Management noted reduced competition in the eBoost space, while HomeBoost is being kept under wraps until fully ready for market [60][61]

Financial Data and Key Metrics Changes - In Q2 2025, total recognized revenue was approximately $1,000,000, a decline of 66% from $3,000,000 in Q2 2024, primarily due to customers deferring capital expenditure projects [14] - Service revenue for the quarter was $378,000, representing a 33% increase year-over-year, while service revenue for the first six months reached $955,000, a 299% increase [15] - Gross margin improved to 66% in Q2 2025, up from 62% in the same quarter last year, attributed to a favorable product mix [15] Business Line Data and Key Metrics Changes - Service revenue from IHP service deployments and validation support services grew by 33% compared to the same period last year and by 46% over the first six months [8] - BIT solution sales saw a 40% increase year-to-date, with expectations for continued growth due to repeat orders [10] - The company has a sales order backlog of approximately $4,600,000, with active projects scheduled for delivery in 2025 [7] Market Data and Key Metrics Changes - The company is negotiating approximately $2,000,000 in new custom and integrated contracts, with bids expected to close before year-end [7] - Open opportunities for three product offerings total approximately $15,000,000, with $7,000,000 designated as high priority [7] - The USDA increased its usage of SteraMist in Q2 2025, indicating growing market acceptance [12] Company Strategy and Development Direction - The company is focused on expanding customer outreach through targeted marketing strategies and strategic partnerships [9] - There is an emphasis on educating the market about proactive disinfection through the SteriMist Pro certified program [10] - The company aims to enhance its infrastructure by strengthening personnel in management and expanding its global distributor network [28] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about maintaining a positive trajectory for the remainder of 2025, despite challenges faced in Q2 [6] - The company anticipates significant orders from large companies as new manufacturing plants are built in the U.S. [38] - Management is hopeful that upcoming regulatory approvals will significantly impact growth [29] Other Important Information - The company was recognized as the Disinfection, Decontamination, and Disinfection Product Company of the Year for 2025 [12] - The company is developing a scalable solution to replace outdated methods in collaboration with the U.S. Army Medical Research Institute of Infectious Diseases [21] - There is a strong pipeline of international partnerships in Europe, with pending approvals expected soon [23] Q&A Session Summary Question: Can you provide margins realized in solution sales compared to the rest of the business? - Management expressed excitement about solution sales, noting high margins and an increase in gross margins to 66% this quarter [33] Question: What opportunities arise from the strategy to bring back pharma manufacturing to the U.S.? - Management highlighted that high regulatory standards present opportunities for significant orders from large companies as new facilities are built [38] Question: Have any customers that deferred CapEx projects notified you about moving ahead? - Management indicated a significant increase in customer deposits and confirmed that at least two customers are expected to proceed with projects in 2026 [41] Question: Can you describe how SteraMist would be used if FDA approvals are obtained? - Management detailed ongoing FDA approval processes for medical devices and food safety applications, emphasizing the potential for expanded market opportunities [43][44] Question: Any new uses developed for SteraMist? - Management mentioned ongoing internal tests for new applications, including extending the shelf life of flowers, but noted hurdles to overcome before entering new industries [46]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 decreased to $200,000 compared to $2,700,000 in the same period last year, with revenue from grants in the prior year being $2,500,000 [17] - Total operating expenses decreased to $8,200,000 from $10,100,000 in the prior year, reflecting efforts to improve operational efficiency [17] - Net loss for Q2 2025 was $7,700,000, or a loss of $0.23 per fully diluted share, compared to a net loss of $7,600,000, or a loss of $0.25 per fully diluted share in the prior year [18] - Adjusted EBITDA loss increased to $7,200,000 from $5,900,000 in the previous year [18] - Cash, cash equivalents, and marketable investment securities at the end of Q2 2025 totaled $13,400,000 [18] Business Line Data and Key Metrics Changes - The Kodiak PCR platform is on track to initiate clinical evaluations for all tests in the pipeline during 2025, including tests for COVID-19, flu, tuberculosis, and HPV [5][6] - The Kodiak PCR ABCR four-plex respiratory panel is expected to begin clinical evaluations concurrent with the 2025 North American flu season [9] - The company is focusing on the tuberculosis test, which is expected to begin clinical evaluations in India and South Africa before the end of 2025 [7][8] Market Data and Key Metrics Changes - India accounted for 27% of global TB cases and 26% of global TB deaths in 2023, making it a top priority market for the company's TB testing [8] - The company aims to target primary healthcare facilities in India, where there are nearly 30,000 centers that require advanced molecular technology [34] Company Strategy and Development Direction - The company is committed to increasing the accessibility of affordable, high-quality diagnostics in the U.S., India, and globally [6] - Plans include expanding manufacturing capacity domestically and in India to meet market demand upon platform launch [16] - The company is pursuing a commercialization strategy targeting physician offices, clinics, skilled nursing facilities, and pharmacies in the U.S. [30][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for multiple commercial launches in 2026 and future developments within the test pipeline [19] - The company anticipates that the clinical trial for the COVID-19 test will be completed by year-end 2025, with a reasonable possibility of FDA clearance by mid-2026 [36][37] Other Important Information - The company is managing its capital requirements through equity or debt financing, additional grant funding, and operational efficiencies [19] - The Kodiak PCR platform is expected to revolutionize PCR infectious disease testing by enhancing affordability, accessibility, and decentralization [16] Q&A Session Summary Question: Expected timeline for clinical trials and applications - Management expects all four tests to enter clinical trials during the remainder of 2025, starting with the COVID-19 test [23] Question: Commercial launch visibility and marketing strategy - Commercialization is planned as soon as FDA clearance is obtained, targeting physician offices, clinics, and pharmacies in the U.S. [30][34] Question: Timeline for commercialization - Management hopes for commercialization before 2026, with a possibility of FDA clearance by mid-2026 [36][37]

Financial Data and Key Metrics Changes - Net sales grew 23% year over year to $16.2 million, marking the third consecutive quarter of revenue growth [5][19] - Gross profit increased 45.4% to $4.6 million, with gross margin expanding 430 basis points to 28.3% [19] - Operating expenses decreased to $7.9 million from $9.9 million, reflecting lower R&D costs [19] - Net loss improved to $7 million or $0.58 per share, compared to a net loss of $13.6 million or $2.02 per share [19] - Adjusted EBITDA improved to negative $2.2 million from negative $6.2 million [19] Business Line Data and Key Metrics Changes - OEM segment net sales rose over 50% year over year to $10.1 million, driven by strong adoption of solutions [5][19] - DTC segment net sales were $5.9 million, down from $6.5 million due to macroeconomic uncertainties [6][19] Market Data and Key Metrics Changes - The company noted a shift in the industry towards premium features and value-added offerings, contrasting with previous cost-reduction strategies [6] - The heavy-duty trucking market remains challenging, but pilot programs are showing positive results [16] Company Strategy and Development Direction - The company is focused on expanding OEM partnerships and leveraging engineering capabilities to deliver integrated solutions [6][11] - Domestic manufacturing capabilities are emphasized as a strategic advantage in a volatile trade environment [8][9] - The company is committed to innovation, recently granted a patent for a non-flammable all-solid-state battery program [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to capitalize on growth opportunities despite a challenging macro environment [11][21] - The company anticipates net sales of $15.9 million in Q3, representing approximately 25% year-over-year growth [21] - Management is optimistic about the ramp-up of pilot programs in the heavy-duty trucking sector [30] Other Important Information - The company completed a public offering raising $5.5 million to support expansion into adjacent markets [10] - The company has optimized its capital structure by exchanging preferred shares for common stock, eliminating associated interest payments [10] Q&A Session Summary Question: When do you expect pilot programs in heavy-duty trucking to impact P&L? - Management expects revenue impact in the first half of next year as fleets await new truck orders [25] Question: How should tariffs impact P&L in the coming quarters? - Management has managed tariff impacts through better inventory pricing and onshoring components, maintaining confidence in managing costs [27][28] Question: Should we expect sequential improvement in Q4? - Management anticipates sequential improvement driven by RV industry growth and new market contributions [31] Question: Can you discuss the recent patent awarded? - The patent relates to the preparation of feedstock for solid-state batteries, crucial for the dry electrode process [34]

Financial Data and Key Metrics Changes - The company reduced its expected cash operating expense guidance for 2025 to a range of $16 million to $17 million, down from the previous range of $17 million to $19 million [20] - Cash operating expenses for 2025 totaled $3.7 million compared to $4.3 million for 2024, indicating a decrease primarily due to reductions in personnel and general administrative expenses [20][21] - The cash balance as of June 30, 2025, was $6.8 million, which includes proceeds from the first tranche of financing [21] Business Line Data and Key Metrics Changes - The enrollment rate for the Nephros study has more than doubled since May, with a strong acceleration observed in the last six weeks [5][12] - The company has shifted its focus to new clinical study sites, specifically targeting nephrologists as principal investigators, which has led to improved enrollment rates [7][12] Market Data and Key Metrics Changes - There is a growing interest from healthcare providers in Nafamostat due to ongoing shortages of heparin and citrate, which are commonly used anticoagulants [9][39] - The company is advancing a compassionate use IDE for Nafamostat, indicating a strong market potential for the product if approved [9][15] Company Strategy and Development Direction - The company is focused on completing the nephro CRRT registrational trial by the end of 2025, with a clear regulatory path and breakthrough designation from the FDA [17][19] - The strategy includes adding new clinical study sites with a focus on nephrology to enhance patient enrollment and engagement [12][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the low clinical, regulatory, and commercial risks associated with the Nafamostat program, citing its established track record in Japan and South Korea [17] - The management team is optimistic about the potential for Nafamostat to become the only FDA-approved regional anticoagulant for CRRT if approved [10][19] Other Important Information - The company is in discussions with multiple institutions regarding the compassionate use of Nafamostat for specific patient populations that do not respond well to existing anticoagulants [9][15] - The company has made significant changes to its clinical study design, including reducing the study size and adjusting the target profile of clinical sites [4][6] Q&A Session Summary Question: What is the expected enrollment acceleration to reach the 70 patient target by year-end? - Management indicated that the enrollment rates are significantly increasing with new sites, and they are confident in reaching the target based on current trends [25][26] Question: Is there an opportunity to leverage data from compassionate use for future publications? - Management confirmed that data collected from compassionate use patients will contribute to a larger safety dataset, which could be beneficial for future publications and commercial uptake [30][33] Question: What is the status of heparin and citrate shortages? - Management noted that heparin shortages are episodic and ongoing, while citrate shortages are also being reported, affecting supply predictability [38][39] Question: What are the main components driving down operating expenses? - Management expects operating expenses to increase in the second half of the year due to rising enrollment rates [43] Question: What gives confidence in the new site initiations? - Management highlighted improved vetting processes and historical data on site performance, indicating high confidence in having new sites operational by the end of the third quarter [50][56]

Financial Data and Key Metrics Changes - Cash and cash equivalents as of June 30, 2025, were $36.5 million, with an expectation that existing cash will fund operations into Q2 2026 [22] - Revenue for Q2 was $933,000, up from $838,000 in the same period last year, indicating increased activity in partner-funded programs [22] - Research and development expenses decreased to $12.2 million from $13 million year-over-year, reflecting cost reduction initiatives [23] - Selling, general, and administrative expenses were $6.6 million, down from $9.3 million in the prior year [24] - Net loss for the quarter was $26.6 million, compared to $28.5 million in the same period last year [24] Business Line Data and Key Metrics Changes - The RIOS herbicide tolerance traits HT1 and HT3 are projected to generate over $200 million in potential annual royalty revenue, with launches targeted for Latin America in 2027 and the U.S. in 2028 [5][9] - The biofragrance program is on track for nominal revenues beginning later this year, with commercial expansion expected to ramp up in 2026 [12][13] Market Data and Key Metrics Changes - The company is witnessing a favorable global regulatory environment that is enhancing market penetration opportunities [6][14] - The EU's regulatory discussions are progressing, with expectations for resolution within six months, which could significantly benefit the company [14][45] Company Strategy and Development Direction - The company is focused on advancing its rice herbicide tolerance traits and sustainable ingredients programs, with a disciplined approach to capital allocation [6][28] - The strategic operational focus aims to reduce annual cash usage to approximately $30 million by 2026, extending the cash runway while capturing significant revenue opportunities [7][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing the strategy that will deliver long-term value, emphasizing the importance of gene editing in agricultural innovation [27][28] - The company anticipates initial revenues from rice traits and biofragrance products starting in 2026, with meaningful expansion thereafter [28][29] Other Important Information - The company has signed agreements with multiple customers in Latin America, enhancing its market presence and customer engagement [10][11] - The successful completion of the FDA review for altered lignin alfalfa paves the way for U.S. commercialization, although it is not expected to be a significant revenue driver compared to priority programs [20] Q&A Session Summary Question: About the germplasm transfer and field trials - Management confirmed that the germplasm transfer involves a new customer who will use the HT3 trait in their field trials [34] Question: Initial revenue expectations for biofragrance - Management clarified that nominal revenues are expected this year, with full commercial runs starting in 2026 [36] Question: EU regulatory discussions and next steps - Management indicated that the EU is working on important amendments and expects resolution within six months, paving the way for commercialization [45][70] Question: Cash burn and expense reduction timeline - Management confirmed that they are on track to reduce operating expenses to $30 million by 2026, with a disciplined approach to capital allocation [56] Question: Scale-up of sustainable ingredients - Management noted that while biofragrance revenues will ramp up quickly, sustainable ingredients may take a couple of years to see significant commercial interaction [58] Question: Differentiation in gene editing technology - Management highlighted the unique single-cell editing system that allows for complex traits without needing a null segregate, setting them apart from competitors [72][73]

Financial Data and Key Metrics Changes - The company reported record second quarter revenue of $39.6 million, a 30% increase year over year, and adjusted EBITDA increased by 22% to a record $13.7 million [15][16] - Adjusted net income rose 37% to €13.4 million, with adjusted diluted net income per share increasing by 42% to $0.37 [17] - Free cash flow grew 36% to $8.2 million, reflecting strong cash conversion and adjusted EBITDA growth [17] Business Line Data and Key Metrics Changes - The marketing business grew by 3%, delivering over 108,000 new depositing customers (NDCs) [15] - Sports data services revenue quadrupled to CHF 10 million, with subscription revenue accounting for 25% of total revenue [15][16] - Recurring revenue, including revenue share arrangements in the marketing business, constituted 51% of total second quarter revenue [16] Market Data and Key Metrics Changes - The company experienced growth in all regions, particularly in North America, aided by the launch of sports betting in North Carolina [15] - The sports data services business saw a 120% year-over-year growth, indicating strong demand and market interest [11] Company Strategy and Development Direction - The company is diversifying its traffic sources and revenue models, adopting an omnichannel approach to engage users across various platforms [6][8] - The acquisition of Spotlight Vegas is expected to enhance the company's offerings in gambling-adjacent entertainment, expanding its client base to include land-based operators [12][13] - The company aims to transform from an affiliate marketing business into a multiplatform integrated marketing, data, and ticketing services business [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of recent Google algorithm updates on search rankings but expressed confidence in recovering lost positions [20][40] - The company anticipates continued growth in non-SEO channels, which are expected to contribute to revenue despite a different margin profile [52] - Management remains optimistic about the long-term potential of the sports data services business and the integration of new acquisitions [11][12] Other Important Information - The company has adjusted its full-year revenue guidance to a range of $171 million to $175 million, reflecting contributions from Spotlight Vegas and the launch of sports betting in Missouri [20] - The company has a strong balance sheet with total cash of €18.7 million and $70.5 million of undrawn capacity on its credit facility [17] Q&A Session Summary Question: Can you provide metrics underlying the Spotlight Vegas transaction? - The upfront payment is $8 million, with a two-year earn-out capped at an additional $22 million based on incremental EBITDA [26] Question: How do you assess the impact of AI on search traffic? - The company has seen a shift in search traffic due to AI tools but remains confident in its ability to adapt and maintain a strong presence in search results [92] Question: What are the expectations for the Spotlight Vegas acquisition? - Spotlight Vegas is expected to generate at least $8 million in net revenue and $1.4 million in incremental adjusted EBITDA for 2026 [22][45] Question: How is the company addressing the recent Google algorithm changes? - Management indicated that recovery from algorithm changes typically takes one to three months, and they are actively working to regain lost search positions [98] Question: What are the growth opportunities in the sports data services business? - The company is optimistic about the growth potential in sports data services, with significant demand from various clients, including startups and media companies [106]