Financial Data and Key Metrics Changes - As of December 31, 2025, the company's cash position was approximately $318.1 million, significantly increased from approximately $151.5 million as of December 31, 2024 [29] - Revenue for the fourth quarter of 2025 was $0, down from approximately $11.1 million for the same period in 2024, and full-year revenue for 2025 was also $0 compared to approximately $22.3 million in 2024 [29][30] - Total operating expenses for Q4 2025 were approximately $29.2 million, up from approximately $18.8 million in Q4 2024, and full-year operating expenses for 2025 were approximately $108.1 million compared to approximately $64.8 million in 2024 [30][31] - Net loss for Q4 2025 was approximately $30.2 million, compared to a net loss of approximately $7.1 million in Q4 2024, and the full-year net loss for 2025 was approximately $105 million compared to approximately $40.5 million in 2024 [31] Business Line Data and Key Metrics Changes - The company is focused on advancing Deramiocel toward potential approval for Duchenne muscular dystrophy (DMD) in the U.S., with a Biologics License Application (BLA) under review by the FDA [5][19] - The HOPE-3 trial results indicated a 91% slowing of disease progression in evaluable patients, with statistically significant results in patients with cardiomyopathy [10][11] - The company aims to position Deramiocel to treat as many eligible patients as possible, with a focus on both skeletal and cardiac disease manifestations of DMD [6][7] Market Data and Key Metrics Changes - The FDA has assigned a PDUFA target action date of August 22, 2026, for the review of the BLA for Deramiocel [5][19] - The company is preparing for a potential commercial launch and has completed its FDA pre-license inspection for its manufacturing facility [20][21] - The current manufacturing facility can support approximately 250 patients per year, with plans to expand capacity to accommodate up to 2,500 patients annually by late 2027 [21] Company Strategy and Development Direction - The company is building an infrastructure to support the launch and commercialization of Deramiocel while expanding its pipeline to treat other indications [8][22] - The focus is on executing a disciplined approach to commercialization, including market access, reimbursement planning, and physician education [22] - The company is also exploring expansion into other diseases, initially focusing on Becker muscular dystrophy [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the data supporting Deramiocel's potential benefit in treating DMD, emphasizing the importance of addressing both skeletal and cardiac aspects of the disease [18] - The company is optimistic about its financial position, with sufficient capital to support operations into the fourth quarter of 2027 [27] - Management highlighted the importance of early intervention in DMD treatment and the potential for Deramiocel to be used in younger patients [75] Other Important Information - The company completed a public offering in December 2025, resulting in net proceeds of approximately $162 million [29] - Capricor's common stock was approved for uplisting to the Nasdaq Global Select Market, enhancing visibility within the institutional investment community [28] Q&A Session Summary Question: Anticipation of Ad Comm and Commercial Prep for Deramiocel Approval - Management indicated uncertainty regarding an Ad Comm but expressed confidence in the strength of the HOPE-3 data regardless of whether an Ad Comm occurs [34][35] Question: Labeling Discussions and Expectations - Management noted that labeling discussions have not yet occurred but believes the data supports a label for both DMD and cardiomyopathy [38][52] Question: Cohorts of HOPE-3 Trial and FDA Considerations - Management clarified that the FDA considers Cohort A and Cohort B as one trial and expressed confidence in the statistical significance of Cohort B [44][45] Question: Manufacturing Capacity and Expansion Plans - Management confirmed plans to expand manufacturing capacity to accommodate more patients and emphasized the importance of regulatory compliance [58][70] Question: Early Intervention and Treatment of DMD - Management highlighted the importance of early intervention and the potential for Deramiocel to be used in younger patients, while acknowledging the challenges of obtaining a prevention label [75] Question: European Rights Deal Status - Management indicated that negotiations with NS Pharma for European rights are ongoing and will be prioritized following the PDUFA date [77]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $123.5 million, up from $114.3 million in Q4 2024, representing an increase of 10.5% [31] - Company-operated restaurant revenue increased by 7.1% to $102.4 million from $95.6 million year-over-year [31] - Adjusted EBITDA for Q4 2025 was $16.9 million, compared to $14.3 million in Q4 2024 [39] - GAAP net income for Q4 2025 was $6.5 million or $0.22 per diluted share, compared to $6 million or $0.20 per diluted share in the prior year [38] Business Line Data and Key Metrics Changes - Company-operated comparable restaurant sales grew by 0.4%, driven by a 2.7% increase in average check size, partially offset by a 2.3% decrease in transactions [31] - Franchise revenue increased by 15.5% to $13 million, with a 3.2% increase in comparable franchise store sales [32] Market Data and Key Metrics Changes - System-wide comparable store sales for the full year of 2025 increased by 0.1%, with a 0.7% increase in average check size, offset by a 0.6% decrease in transactions [33] - For Q1 2026, system-wide comparable store sales increased by 2.4%, consisting of a 1.8% increase in company-operated restaurants and a 2.8% increase in franchise restaurants [33] Company Strategy and Development Direction - The company aims to drive sustainable traffic growth while maintaining margin discipline and unit economic improvements achieved over the past two years [7] - The focus is on executing a five-pillar strategy that includes culinary innovation, operational excellence, and digital engagement to enhance customer experience [8][22] - The company plans to open approximately 18-20 new restaurants in 2026, with a significant portion outside California [27] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers are increasingly budget-conscious, seeking quality food at a good value, which aligns with the company's offerings [46] - The company is optimistic about its growth trajectory, supported by a healthy pipeline of franchise partners and improved unit economics [59] - Management expressed confidence in the brand's turnaround and the ability to sustain growth despite macroeconomic uncertainties [60] Other Important Information - The company completed 69 planned remodels in 2025 and plans to remodel 25-35 company-operated and 30-40 franchise-operated restaurants in 2026 [28] - The company has made substantial technology investments, including upgrading to a cloud-enabled point of sale platform [24] Q&A Session Summary Question: Consumer demand and confidence - Management indicated that consumers are looking for great food at a great value and are responding positively to value-driven offerings [46][47] Question: Menu innovation and marketing - Management emphasized the importance of thoughtfully pacing and sequencing menu innovations while removing less popular items to manage complexity [49][50] Question: Franchise growth and pipeline - Management highlighted a mix of growth from existing franchise partners and new partners, with a healthy pipeline for future expansion [58][59] Question: Annual guidance and confidence in business - Management expressed confidence in the brand's health and the ability to articulate a multi-year growth plan based on improved margins and profitability [60][61] Question: Differences in traffic between company-operated and franchise locations - Management noted that variations in traffic can be attributed to multiple factors, including geography and pricing strategies [66] Question: Future product launches - Management confirmed that the full launch of tenders is expected in spring, with additional sandwich tests planned for later in the year [73]

Financial Data and Key Metrics Changes - For Q4 2025, total revenue was $123.5 million, up from $114.3 million in Q4 2024, representing an increase of 10.5% [31] - Company-operated restaurant revenue increased by 7.1% to $102.4 million from $95.6 million year-over-year [31] - Adjusted EBITDA for Q4 2025 was $16.9 million, compared to $14.3 million in Q4 2024, reflecting a significant improvement [39] - GAAP net income for Q4 was $6.5 million or $0.22 per diluted share, compared to $6 million or $0.20 per diluted share in the prior year [38] Business Line Data and Key Metrics Changes - Company-operated comparable restaurant sales grew by 0.4%, driven by a 2.7% increase in average check size, despite a 2.3% decrease in transactions [31] - Franchise revenue increased by 15.5% to $13 million, supported by a 3.2% increase in comparable franchise restaurant sales [32] Market Data and Key Metrics Changes - System-wide comparable store sales for the full year of 2025 increased by 0.1%, with a 0.7% increase in average check offset by a 0.6% decrease in transactions [33] - For Q1 2026, system-wide comparable store sales increased by 2.4%, consisting of a 1.8% increase in company-operated restaurants and a 2.8% increase in franchise restaurants [33] Company Strategy and Development Direction - The company aims to drive sustainable traffic growth while maintaining margin discipline and unit economic improvements achieved over the past two years [7] - The focus for 2026 includes executing against a five-pillar strategy, emphasizing culinary innovation, operational excellence, and digital engagement [8][22] - The company plans to open approximately 18-20 new restaurants in 2026, with a significant portion outside California, and aims to remodel 25-35 company-operated restaurants [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the consumer's demand for quality food at a good value, noting a shift towards budget-conscious spending [46] - The company has seen improvements in operational excellence, with overall satisfaction scores outpacing the QSR industry [19] - Management is optimistic about the brand's growth trajectory, supported by a strong leadership team and strategic investments in operations and technology [61][76] Other Important Information - The company completed 25 franchise restaurant remodels and 10 company remodels in Q4, with a total of 69 remodels planned for the year [40] - The company has made substantial technology investments, including upgrading to a cloud-enabled point of sale platform [24] Q&A Session Summary Question: Consumer demand and underlying trends - Management noted that consumers are increasingly looking for great food at a good value, responding positively to value-driven offerings [46] Question: Menu innovation and marketing strategy - The company is pacing and sequencing menu innovations thoughtfully, ensuring that new items replace older ones to manage complexity [49] Question: Growth mix between existing and new franchisees - Management indicated a healthy mix of growth from existing franchise partners and new partners, with a focus on expanding the franchise pipeline [58] Question: Confidence in providing multi-year guidance - Management expressed confidence due to improved brand health, stabilized margins, and a strong leadership team capable of driving growth [60] Question: Differences in traffic between company-operated and franchise locations - Management explained that variations in traffic can be attributed to multiple factors, including geography and pricing strategies [66] Question: Future plans for debt and cash flow management - The company plans to invest cash flow into operational improvements and new unit development while evaluating potential returns to shareholders [76]

Financial Data and Key Metrics Changes - For fiscal 2025, the company achieved net sales of $12.4 billion, reflecting a nearly 10% growth compared to the previous year [5] - Operating income was reported at $1.5 billion, representing 12.4% of sales, while diluted EPS increased by 1.2% to $25.64 [33] - In Q4, net sales rose 11.8% to $3.9 billion, with comparable sales increasing by 5.8% driven by a 4.2% rise in average ticket and a 1.6% increase in transactions [27][32] Business Line Data and Key Metrics Changes - The skincare and wellness category accounted for 24% of sales, while the makeup category decreased to 35% [28] - Fragrance was the strongest performing category with double-digit comp growth, driven by new products from established brands and exclusive launches [29] - Haircare saw high single-digit comp growth, primarily due to strong performances from new brands [29] Market Data and Key Metrics Changes - The company gained market share in both mass and prestige beauty segments, with a 5.4% increase in comparable sales across all categories [16] - The loyalty program grew by 5% to a record 46.7 million active members, indicating strong retention and reactivation of existing members [16] Company Strategy and Development Direction - The Ulta Beauty Unleashed strategy focuses on driving core business growth, scaling new businesses, and realigning the foundation for future growth [9] - The company plans to enhance brand-building efforts and strengthen its position as a retailer of choice across various price points [19] - Continued international expansion is a priority, with nearly 100 stores opened in five countries [12] Management's Comments on Operating Environment and Future Outlook - Management noted resilience in consumer behavior, with a strong focus on value and affordability, while also acknowledging potential impacts from rising global conflicts [17][18] - The company anticipates beauty category growth in the 2%-4% range for fiscal 2026, reflecting a normalization of growth rates [18] - Management expressed optimism about future opportunities while remaining cautious about economic volatility [24] Other Important Information - The company plans to invest approximately $400 million to $450 million in capital expenditures for store expansion and digital capabilities [39] - The strategic integration with TikTok is expected to enhance engagement and sales through social commerce [20] Q&A Session Summary Question: Composition of comparable sales and pricing dynamics - Management indicated that pricing increases typically affect 10%-15% of the assortment and plans for a normalized pricing environment in fiscal 2026 [44] Question: SG&A expenses and marketing investments - SG&A increased due to higher incentive compensation and investments in marketing to support growth, with a focus on personalization [46][47] Question: Industry growth outlook and geopolitical factors - Management noted that the 2%-4% growth guidance reflects normalization and adjustments for macro pressures, with a focus on controlling internal factors [54][55] Question: Early response to new product launches - The launch of Rare Beauty showed strong initial performance, contributing positively to overall growth, although it is just one of many brands [60][61] Question: Competitive environment and brand acquisition - The company emphasized its broad assortment from low to luxe and its strong loyalty program as key competitive advantages [66][67]

Financial Data and Key Metrics Changes - The company ended 2025 with cash equivalents and investments of $656.6 million, a significant increase from $198.2 million at the end of 2024 [13] - R&D expenses for 2025 were $132 million, down from $168.6 million in 2024, with Q4 2025 R&D expenses at $24.4 million compared to $44.6 million in Q4 2024 [14][15] - G&A expenses increased to $38.6 million for 2025 from $23.8 million in 2024, with Q4 2025 G&A expenses at $13.9 million compared to $7.2 million in Q4 2024 [16] - The net loss for 2025 was $154.7 million, an improvement from $177.8 million in 2024, with Q4 2025 net loss at $32.2 million compared to $48.9 million in Q4 2024 [17] Business Line Data and Key Metrics Changes - The company is focused on the development of lorundrostat, which has shown promising results in clinical trials for treating uncontrolled and resistant hypertension [5][7] - The NDA for lorundrostat was accepted by the FDA, with a PDUFA target action date set for December 22, 2026 [5] Market Data and Key Metrics Changes - Uncontrolled and resistant hypertension affects over 20 million people in the U.S., representing a significant market opportunity for lorundrostat [8] - The company is actively engaging with payers to ensure access for lorundrostat, particularly targeting its use in third-line or later treatment [21] Company Strategy and Development Direction - The company aims to position lorundrostat as a best-in-class therapy for uncontrolled and resistant hypertension, with plans for market access and payer engagement [8][9] - There is an ongoing strategy to explore additional indications for lorundrostat, including comorbid conditions related to hypertension [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market opportunity for lorundrostat, especially with the upcoming PDUFA date and the potential for a successful launch [20] - The company is optimistic about payer access and the value proposition of lorundrostat in treating resistant hypertension [21] Other Important Information - The company has expanded its medical communications efforts to support the launch of lorundrostat, including increased peer-reviewed publications and a larger team of medical science liaisons [9] Q&A Session Summary Question: What are the expectations from the competitive launch of lorundrostat? - Management is excited about the market opportunity and is observing competitor pricing and strategies to optimize lorundrostat's launch [20] Question: Can you provide insights on pre-launch payer interactions? - Management is optimistic about access, particularly for resistant hypertension, and believes the comprehensive dataset will support payer engagement [21] Question: How confident is the company in the results from the phase 2 OSA study? - Management acknowledged the study's limitations but emphasized the importance of demonstrating blood pressure reduction in high-risk patients [27][28] Question: What is the commercial capability being built ahead of the PDUFA date? - The company is making strategic investments in commercial capabilities and expanding its medical affairs team to ensure rapid uptake upon approval [38] Question: How does the company plan to differentiate its approach to market compared to competitors? - Management is evaluating the number of sales representatives needed and intends to leverage comprehensive clinical data to inform their commercial strategy [43][44] Question: What are the potential partnership opportunities being explored? - The company seeks partners that recognize the value of lorundrostat and can support its development beyond hypertension [93][94]

Financial Data and Key Metrics Changes - Revenue for the full year 2025 was $237.3 million, a significant increase from $28.7 million in 2024, primarily driven by government contracts and the Dynavax collaboration [20] - Cash equivalents and investments at the end of the fourth quarter were $63.8 million, with an expected cash runway into the second quarter of 2027 [20][21] Business Line Data and Key Metrics Changes - The partnership with Dynavax for the oral COVID-19 vaccine candidate includes a $25 million upfront payment and a $5 million equity investment, with potential future payments totaling up to $700 million [5][7] - The oral norovirus vaccine candidate has shown promising results in clinical studies, with significant increases in IgA levels in both serum and breast milk [14][15][16] Market Data and Key Metrics Changes - The collaboration with Dynavax, now a Sanofi company, is expected to enhance the company's market position in the vaccine space [6][7] - The ongoing phase 2B trial of the oral COVID-19 vaccine candidate is crucial for addressing the ongoing need for next-generation solutions in the context of COVID-19 [10][11] Company Strategy and Development Direction - The company is focused on managing financial resources effectively, pursuing strategic partnerships, and reducing operating costs to enhance cash runway [8][21] - Future priorities include executing data collection for the COVID-19 clinical trial and securing partnerships for the norovirus program [22] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the potential of both the COVID-19 and norovirus oral vaccine programs to provide public health benefits and create shareholder value [22] - The company is committed to realizing the value of its oral pill vaccine platform, which is seen as a disruptive technology in the vaccination landscape [22] Other Important Information - The company has entered into a lease termination agreement to reduce operating expenses, allowing for a more focused allocation of financial resources [5][8] - The results from the 400-participant sentinel cohort of the COVID-19 trial are expected to be reported in early Q2 2026, with the larger KP2 cohort data anticipated in Q4 2026 [11][22] Q&A Session Summary Question: Delay in 400-person sentinel cohort data - Management acknowledged a slight delay in reporting the 400-person sentinel cohort data, now expected in early Q2 instead of late Q1, due to interactions with BARDA [26][28] Question: Expectations for sentinel data and follow-up - The 400-person cohort will provide safety data, while the 5,000-person KP2 cohort will offer efficacy insights, with results expected in Q4 2026 [29][31] Question: Decision points after sentinel data - The decision-making process for next steps post-sentinel data will involve both BARDA and Dynavax, with Vaxart overseeing the Phase 2B trial [35][36] Question: Regulatory input on norovirus candidate - Discussions with the FDA regarding endpoints for the next phase 2 study of the norovirus candidate are ongoing, with a focus on safety and immunogenicity [42][43]

Financial Data and Key Metrics Changes - The company achieved a billion-dollar revenue scale, growing 22% year-over-year, and delivered full-year operating profitability, with an operating margin of 3.5% [8][33] - In Q4, revenue grew 20% year-over-year to $271 million, with total ARR growing 22% and a record $64 million in net new ARR [33][34] - The gross margin was maintained at 78%, with an operating margin of 6%, representing a 450 basis point year-over-year improvement [35][36] Business Line Data and Key Metrics Changes - Non-endpoint solutions surpassed half of total annual bookings, indicating strong adoption of the Singularity Platform across diverse categories [10][11] - The attach rate of the Purple solution reached over 50% on licenses sold in Q4, with significant improvements in threat remediation and return on investment for users [13][14] - ARR from Prompt Security more than doubled sequentially, with strong uptake across both new logos and existing customers [15][16] Market Data and Key Metrics Changes - International markets grew 30% and represented 40% of total revenue, reflecting strong global demand [34] - The cohort of customers with ARR of $1 million or more grew 20% year-over-year to 153 customers [34] - The company secured nearly 1/5 of the Fortune 500 and hundreds of Global 2000 enterprises, indicating a strong market presence [24] Company Strategy and Development Direction - The company is focused on optimizing its go-to-market strategy and enhancing operational efficiencies while maintaining a disciplined approach to capital allocation [31][39] - The emphasis on AI-native security positions the company to capture a significant market opportunity, with AI security being the fastest-growing category [28][30] - The company aims to achieve the Rule of 40, driven by sustained top-line growth and improving profitability [39][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term trajectory, supported by a solid pipeline and strategic partnerships, while monitoring macroeconomic and geopolitical uncertainties [39][41] - The company is well-positioned at the intersection of AI, data, and cybersecurity, leading the industry into the next era of autonomous security [42] - The new CFO is expected to focus on durable growth and acceleration in the go-to-market strategy, aligning resources to capitalize on emerging opportunities [60][62] Other Important Information - The company ended the year with $770 million in cash equivalents and no debt, allowing for opportunistic share repurchases [37] - The company launched new AI-native solutions, including Data Security Posture Management, enhancing its product offerings [17][18] Q&A Session Summary Question: Dynamics around growth and partner-led deals - Management noted record fourth-quarter net new ARR and emphasized execution consistency and solid demand across the board, with no significant change in business dynamics between partners and end customers [45][46] Question: Clarification on profit margins - Management acknowledged that profit margins were lower than expected but highlighted improvements in cash collection and the lumpiness of larger deals affecting quarterly results [49][50] Question: Customer adoption of new products - Management indicated that the stable net retention rate reflects a focus on new logo business, with significant expansion opportunities within the existing customer base [52][54] Question: Update on endpoint security and competitive landscape - Management confirmed that endpoint security remains a strong growth driver, with ongoing share gains and the importance of endpoint control in the GenAI era [57][58] Question: Priorities for the new CFO - The new CFO will focus on durable growth, optimizing go-to-market strategies, and aligning resources to capitalize on high-demand areas [60][62] Question: Drivers of new ARR growth - Management expects improved net new ARR driven by a balanced mix of core endpoint growth and emerging products, with a shift towards a more balanced revenue seasonality [65][66] Question: Stability of gross margins - Management reassured that gross margins are stable and at the high end of long-term targets, with no expected changes [69] Question: Details on the Cloudflare deal - Management highlighted the unique capabilities and ease of deployment that led to Cloudflare choosing their platform, emphasizing the need for proven technology in the AI space [71][74]

Financial Data and Key Metrics Changes - For fiscal 2025, the company reported net sales growth of nearly 10% to $12.4 billion, operating income of $1.5 billion (12.4% of sales), and EPS of $25.64, reflecting strong financial performance [5][32][33] - In Q4, net sales increased 11.8% to $3.9 billion compared to $3.5 billion last year, with comparable sales up 5.8% driven by a 4.2% increase in average ticket and a 1.6% increase in transactions [25][26] Business Line Data and Key Metrics Changes - The skincare and wellness category accounted for 24% of sales, while the makeup category decreased to 35% due to the impact of Space NK, which has a higher mix of skincare sales [28] - Fragrance was the strongest performing category with double-digit comp growth, driven by newness from established brands and exclusive brands [28][29] - Haircare delivered high single-digit comp growth, primarily from new brands like Amika and Moroccanoil [29] Market Data and Key Metrics Changes - The company gained market share in both mass and prestige beauty, with a 5.4% increase in comparable sales across all categories [15] - The loyalty program grew by 5% to a record 46.7 million active members, indicating strong customer retention and engagement [15] Company Strategy and Development Direction - The Ulta Beauty Unleashed strategy focuses on driving core business growth, scaling new businesses, and realigning the foundation for future growth [9][21] - The company plans to enhance brand-building efforts, invest in stores, and expand digital capabilities, including a strategic integration with TikTok [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted continued resilience in consumer behavior, with a strong focus on value and affordability, while also acknowledging potential impacts from rising global conflicts [16][17] - The company expects beauty category growth to align with historical rates of 2%-4% for fiscal 2026, with a focus on maintaining market share and driving growth [17] Other Important Information - The company plans to invest approximately $400 million to $450 million in capital expenditures for store expansion and digital capabilities [39] - The new distribution center in the Northwest is expected to be operational by 2027, with costs included in the current year's guidance [75] Q&A Session Summary Question: Composition of comparable sales and pricing dynamics - Management indicated that pricing increases typically affect 10%-15% of the assortment and plans for a normalized pricing environment in fiscal 2026 [43] Question: SG&A expenses and marketing investments - SG&A increased due to higher incentive compensation and investments in marketing to support growth, with a focus on personalization as a key area for future investment [45][46] Question: Industry growth outlook and geopolitical factors - Management noted that the 2.5%-3.5% comp guidance reflects a normalization and adjustments for dynamic operating environments, with a focus on controlling internal factors [52][53] Question: Early response to new product launches - The launch of Rare Beauty showed strong initial performance, contributing positively to overall growth, although it is just one of many brands in the portfolio [58][59] Question: Competitive environment and brand acquisition - The company emphasized its broad assortment from low to luxe and its strong loyalty program as key competitive advantages, while continuing to engage with newness and exclusivity [62][64]

Financial Data and Key Metrics Changes - The company ended 2025 with cash equivalents and investments of $656.6 million, a significant increase from $198.2 million at the end of 2024, indicating strong liquidity to support operations into 2028 [12] - R&D expenses for 2025 were $132 million, down from $168.6 million in 2024, primarily due to a reduction in preclinical and clinical costs following the conclusion of the lorundrostat pivotal program [13][14] - G&A expenses increased to $38.6 million in 2025 from $23.8 million in 2024, driven by higher compensation and professional fees [15] - The net loss for 2025 was $154.7 million, an improvement from a net loss of $177.8 million in 2024 [16] Business Line Data and Key Metrics Changes - The company is focused on the development of lorundrostat, which has shown promising results in clinical trials for treating uncontrolled and resistant hypertension [6][10] - The NDA for lorundrostat was accepted by the FDA, with a PDUFA target action date set for December 22, 2026, marking a significant milestone for the company [5] Market Data and Key Metrics Changes - Uncontrolled and resistant hypertension affects over 20 million people in the U.S., representing a substantial market opportunity for lorundrostat [7] - The company is actively engaging with payers to ensure access for lorundrostat, particularly targeting its use in third-line or later treatment settings [20] Company Strategy and Development Direction - The company aims to position lorundrostat as a best-in-class therapy for hypertension, with plans for market access and payer engagement to support its launch [8][10] - There is an emphasis on expanding medical communications and increasing peer-reviewed publications to drive awareness and uptake of lorundrostat [8] - The company is exploring additional indications for lorundrostat, including comorbid conditions related to hypertension, such as chronic kidney disease and obstructive sleep apnea [10][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market opportunity for lorundrostat, particularly in light of the unmet needs in resistant hypertension [19] - The company is optimistic about payer access and believes that the comprehensive dataset supporting lorundrostat will resonate with prescribers [20] - Management highlighted the importance of ongoing clinical development and the potential for lorundrostat to address various comorbidities associated with hypertension [10][66] Other Important Information - The company has begun planning for the commercial launch of lorundrostat, including expanding its medical affairs capabilities and preparing for potential partnerships [36][92] - The company is evaluating the potential for international submissions and partnerships to maximize the value of lorundrostat [56][92] Q&A Session Summary Question: What are the company's expectations regarding the competitive launch of lorundrostat? - Management acknowledged the competitive landscape and expressed interest in learning from competitors' pricing and market strategies while emphasizing the significant market opportunity for lorundrostat [19] Question: How confident is the company in payer access for lorundrostat? - Management expressed strong confidence in the value proposition of lorundrostat and ongoing positive dialogues with payers [20] Question: What is the company's strategy regarding commercial capabilities and potential partnerships? - Management indicated that they are building commercial capabilities while exploring partnerships, emphasizing the importance of ensuring rapid uptake upon approval [36][92] Question: How does the company plan to differentiate lorundrostat in the market? - Management discussed the comprehensive data supporting lorundrostat and the targeted approach to prescribers, focusing on specific subsegments of the hypertension market [42][43] Question: What are the company's thoughts on pricing strategy? - Management stated that it is too early to provide specifics on pricing but indicated that the value proposition resonates with payers for both third and fourth-line treatments [62] Question: What are the company's plans for exploring additional indications for lorundrostat? - Management confirmed ongoing evaluations of potential indications related to aldosterone dysregulation and the importance of addressing comorbidities associated with hypertension [66]

Financial Data and Key Metrics Changes - In Q4 2025, net sales decreased by 20.6% to $87.7 million compared to $110.5 million in Q4 2024 [15] - Full-year net sales were down 6.7%, totaling $368.3 million in 2025 versus $394.9 million in 2024 [15] - Adjusted non-GAAP profit for Q4 2025 was $26.1 million, or 29.7% of sales, up from 28.4% in Q4 2024 [16] - Full-year adjusted non-GAAP net income was $4.2 million, or $0.31 per share, compared to a loss of $0.6 million, or $0.05 per share in 2024 [20] Business Line Data and Key Metrics Changes - Connected Home channel sales increased by $17.1 million, or 15.8%, to $125.4 million for the full year [15] - In Q4 2025, Connected Home sales were down 13.7% to $29.7 million, driven by lower HASH and HVAC sales [16] - Home entertainment sales decreased by $43.7 million, or 15.2%, to $242.9 million for the full year [16] Market Data and Key Metrics Changes - The company noted a structural decline in parts of the home entertainment business and a softening in the connected home market [9] - Customer forecasts and orders indicated that revenue inflection in Connected Home would take longer than expected [10] Company Strategy and Development Direction - The company is focused on restructuring to align with the revenue and margin profile for 2026, including a reduction in force and cost reductions across various areas [11] - The strategy includes optimizing R&D and portfolio focus on high-revenue and high-margin opportunities [11] - The company aims to improve operational efficiency, strengthen profitability, and generate more free cash flow [23] Management Comments on Operating Environment and Future Outlook - Management acknowledged continued turbulence in home entertainment and a tempered outlook for Connected Home products [8] - The company is not providing quarterly guidance for fiscal year 2026, focusing instead on delivering a full-year plan [12] - Management emphasized the need for structural changes to improve margins and cash generation [19] Other Important Information - The company achieved a positive net cash position for the first time since 2021, with a net cash balance of $8.2 million [20] - The company executed a reduction in force (RIF) of approximately 50 people in Q4 [27] Q&A Session Summary Question: What is the expected decline in revenue for 2026? - Management stated that due to revenue uncertainty, they cannot provide specifics on the expected decline [25] Question: How much more expense reduction is planned from the Q4 run rate? - Management indicated that the operating expenses would be significantly reduced, aligning costs with revenue [26] Question: What percentage of headcount was affected by the RIF in Q4? - The RIF in Q4 affected around 50 people [27] Question: What significant customers did the company have in Q4? - Major customers included Daikin at close to 16% and Comcast at close to 11% [31] Question: Was the licensing revenue in Q4 from traditional home entertainment or connected home? - The licensing revenue was primarily from the traditional business, with plans to expand in connected home [32]