Business First Bancshares (NasdaqGS:BFST) Q3 2025 Earnings Call October 23, 2025 05:00 PM ET Speaker0Hello and thank you for standing by. My name is Mark, and I will be your conference operator today. At this time, I would like to welcome everyone to Business First Bancshares Q3 twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.I would now like to turn the call over to Matt Silley. Yo ...

Financial Data and Key Metrics Changes - Coursera reported revenue of $194 million for Q3 2025, reflecting a 10% year-over-year increase [4][20] - Free cash flow reached $27 million, up 59% from the previous year, contributing to a total of over $80 million year-to-date, representing 55% year-over-year growth [4][22] - The company raised its full-year revenue guidance to a range of $750 to $754 million, indicating an 8% to 9% growth from the prior year [5][18] Business Line Data and Key Metrics Changes - Consumer segment revenue was $130 million, up 13% year-over-year, driven by 7.7 million new registered learners [20][23] - The gross profit for the consumer segment was $80 million, a 16% increase from the previous year, with a gross margin of 61% [24] - Enterprise segment revenue was $64 million, up 6% year-over-year, with a net retention rate of 89% [25][26] Market Data and Key Metrics Changes - The total number of registered learners reached 191 million, with significant growth in the consumer segment [23] - The demand for generative AI courses has surged, with 14 enrollments per minute, up from eight enrollments per minute last year [9][10] Company Strategy and Development Direction - The company is focusing on product-led innovation and operational discipline to enhance customer experiences and drive long-term growth [4][5] - Coursera is expanding its catalog, which has grown by 44% to over 12,000 courses, and is enhancing its offerings with nearly 100 professional certificates [8][9] - The integration with OpenAI's ChatGPT is expected to enhance user engagement and discovery of Coursera's offerings [16][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the consumer business, citing strong top-of-funnel metrics and the success of Coursera Plus [37][38] - The enterprise environment remains muted, with no significant changes expected in corporate spending trends [70] - The company anticipates Q4 revenue in the range of $189 to $193 million, representing 5% to 8% year-over-year growth [17][18] Other Important Information - The appointment of Anthony Salcido as the new General Manager of the enterprise segment is expected to drive growth initiatives [5][6] - The company is investing in AI-driven innovations and personalized learning experiences to meet evolving learner needs [19] Q&A Session Summary Question: Insights on OpenAI embedded app and its impact - Management is excited about the partnership with OpenAI, noting it as a top-of-funnel opportunity without a direct economic arrangement [29][30] Question: Sales and marketing investment priorities - The company continues to see effective returns on sales and marketing investments, particularly in driving subscriptions [33][34] Question: Q4 revenue outlook and consumer growth durability - Management raised full-year revenue guidance, citing strong consumer growth and visibility from Coursera Plus [36][37] Question: Balancing free cash flow growth with content investments - The company plans to continue investing in content while leveraging AI to reduce production costs [39] Question: International pricing strategy and its impact - Management lowered prices in various international markets to enhance accessibility and drive revenue growth [43][44] Question: Trends in enterprise segment and corporate spending - Mixed trends were observed across different verticals, with Coursera for Campus performing better than Coursera for Government [45][46] Question: Future of AI certifications and partnerships - There is potential for creating AI certifications in collaboration with partners, similar to existing certifications with other companies [58][60] Question: Shifts in search from traditional SEO to AI search - The integration with OpenAI is expected to improve user engagement and traffic quality, enhancing the learner journey [63][64]

Financial Data and Key Metrics Changes - The company reported record adjusted revenue of $1,569 million, a 7% increase year-over-year, and adjusted diluted earnings per share of $1.57, reflecting a 17.2% increase [5][14] - Adjusted consolidated EBITDA reached $619 million, up 9.3%, with a quarterly adjusted consolidated EBITDA margin of 39.5% [5][14] - Cash from operating activities for the nine months ended September 30, 2025, was $1,101 million, a 22% increase over the prior year [6][16] Business Line Data and Key Metrics Changes - The Global Investor and Distribution Services (GIDS) business experienced a 9% revenue growth, while GlobeOp reported a 9.6% revenue growth [5][14] - Financial services recurring revenue growth was 6.7% in Q3 [6] Market Data and Key Metrics Changes - The company noted strength across all alternative markets and capitalized on international opportunities, particularly in Australia and the U.S. [5][6] Company Strategy and Development Direction - The company is focused on intelligent automation and AI as both a revenue opportunity and a means to enhance operational efficiency [11] - Recent acquisitions, including Kural Fund Services and Callistone, are aimed at expanding the company's market presence and capabilities, particularly in the African market and digital assets [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fourth quarter, expecting continued growth and improved margins, while also acknowledging the competitive landscape [17][19] - The company anticipates revenue for 2025 to be in the range of $6,210 million to $6,250 million, with an organic revenue growth of 4.6% at the midpoint [17][18] Other Important Information - The company returned $305 million to shareholders in Q3, including share repurchases and dividends, and raised its common stock dividend by 8% to $1.8 [7][14] - The company ended Q3 with $388 million in cash and cash equivalents and $6.6 billion in gross debt, resulting in a net leverage ratio of 2.59 times [16] Q&A Session Summary Question: Contribution of Batea to Q4 organic growth - Management expects Batea to contribute approximately $25 million in Q4, up from $16 million in the previous year [22][23] Question: Mechanics behind GIDS organic growth - The organic growth was significantly driven by a large lift out completed in Sydney, Australia, and other successful lift outs [25][27] Question: Attractiveness of CuraFund services deal - The African market is still developing in fund administration, and the acquisition is expected to enhance relationships with large insurers [30][32] Question: Impact of lost business from State Street - Management indicated a small impact on revenue but emphasized that the WIP business will continue to grow [37] Question: Margin outlook with GIDS and GlobeOp growth - The strength of GlobeOp's margins contributed positively, and overall margin improvement is expected to continue [38] Question: Seasonality of Callistone's revenue - Management stated that there is no significant seasonality in Callistone's revenue that would impact growth rates [46] Question: Pipeline for Intralinks and competitive landscape - Early indicators of pipeline improvement were noted, although growth has not yet translated into improved results [48] Question: Confidence in healthcare business growth - Management expressed confidence in the healthcare business, citing strong client relationships and ongoing development efforts [50]

Financial Data and Key Metrics Changes - The company reported earnings of $0.73 per share for Q3 2025, with net interest income reaching a record $305 million, up 16% compared to Q3 2024 [6][8] - Total loans grew by 1% quarter-over-quarter and 3% year-over-year, with C&I loans leading the growth, increasing by nearly $1 billion year-to-date [6][11] - The CET1 capital ratio increased by 30 basis points year-to-date, reaching 10.33% in Q3 [5][20] Business Line Data and Key Metrics Changes - C&I lending saw significant growth, with nearly $300 million added in Q3 alone, contributing to a year-to-date increase of nearly $1 billion [7][11] - Core customer deposits increased by over $600 million in Q3, up 2% from Q2 and over 4% or $1.2 billion compared to the same period last year [12][14] - Non-interest income rose to $81 million in Q3, a 21% increase from the prior quarter, driven by capital markets revenue and wealth fees [8][18] Market Data and Key Metrics Changes - The company experienced strong seasonal deposit inflows, with core customer deposits up 2% or $628 million from Q2 [7][12] - The overall wholesale funding sources decreased by 2% versus Q2, indicating a shift towards lower-cost core deposits [12][14] - The company expects total bank loan growth of 5% to 6% for the year, despite challenges in the CRE sector [11][45] Company Strategy and Development Direction - The company is focused on organic growth and deepening customer relationships, with a strategy to hire talented relationship managers in underpenetrated metro markets [9][10] - The strategic investments are aimed at enhancing profitability and capital generation while maintaining a conservative credit culture [5][9] - The company plans to continue refining its focus on commercial deposits and enhancing its consumer value proposition [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow and deepen its customer base despite macroeconomic uncertainties [6][10] - The outlook for 2026 remains positive, with expectations for continued strong C&I growth and improved deposit production [30][31] - Management highlighted the importance of maintaining credit discipline and proactive portfolio management in the current economic environment [5][22] Other Important Information - The company reported flat delinquencies and non-accruals at 34 basis points of total loans, indicating stable asset quality [8][24] - The efficiency ratio improved to below 55%, reflecting positive operating leverage [19][20] - The company is preparing for product upgrades and enhancements in late Q4 2025 and into 2026 to attract and retain customers [12][14] Q&A Session Summary Question: What happens when the remaining RMs come off their non-compete? - Management expects C&I growth to accelerate as more relationship managers become available, with production up 12% and pipelines up 31% [30] Question: Can you discuss the fee income and expectations for Q4? - Management noted that Q3 included a one-time asset gain, and while Q4 may see a decline, underlying capital markets and commercial production trends remain positive [32] Question: How does the company view the margin outlook with potential rate cuts? - Management believes there is an opportunity for continued margin improvement, despite potential fluctuations due to market behavior [33][51] Question: What drove the modest increase in deposit costs in Q3? - The increase was attributed to seasonal factors and higher-end pricing accounts, but management remains comfortable with the overall deposit pricing [37] Question: What is the company's approach to hiring new relationship managers? - The company is open to hiring quality relationship managers year-round and will be opportunistic in seizing opportunities as they arise [40] Question: How does the company view the interplay between C&I growth and headwinds in other areas? - Management acknowledged that while RESI is a headwind in terms of balances, it is a purposeful strategy, and they expect to offset CRE payoffs with increased production in other areas [44]

Financial Data and Key Metrics Changes - For Q3 2025, diluted earnings per share increased to $0.96 from $0.86 in the linked quarter, driven by reduced provision for credit losses and increased net interest income [16] - Net interest income rose to $43 million from $42.5 million in the previous quarter, while the net interest margin (NIM) was 4.05%, slightly down from 4.07% [16][17] - The consolidated common equity Tier 1 risk-based capital ratio was 14.41%, and the Tier 1 leverage ratio was 12.37% as of September 30, 2025 [7] Business Line Data and Key Metrics Changes - Loans held for investment decreased by $45.5 million to $3.05 billion, primarily due to a $46.5 million decline in multifamily property loans [8] - The indirect auto loan portfolio remained relatively stable at $239 million, down from $296 million a year ago, with a focus on maintaining credit quality [12] - Non-interest income for Q3 was $11.2 million, down from $12.2 million in the linked quarter, mainly due to a decrease in mortgage banking revenues [14][15] Market Data and Key Metrics Changes - Deposits increased by $142.2 million to $3.88 billion, with significant growth in non-interest-bearing deposits, which rose to 27% of total deposits [17] - The major metro loan portfolio represented 33.2% of the total loan portfolio, with steady performance in Dallas, Houston, and El Paso [11] Company Strategy and Development Direction - The company aims to grow its lending team by up to 20% to enhance loan growth, with a focus on organic growth and potential M&A opportunities [5][6] - The management is optimistic about accelerating loan growth in 2026, despite current headwinds from higher-than-normal loan paydowns [5][14] - The company is actively engaging in discussions with potential acquisition targets that align with its conservative nature and culture [6][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's strong financial position and ability to capitalize on growth opportunities, despite challenges in the current economic environment [4][86] - The management noted that while there are concerns about credit quality, particularly in the indirect auto portfolio, they have not seen significant increases in delinquencies [63][70] Other Important Information - The company redeemed $50 million in subordinated debt to avoid higher interest rates, reflecting a proactive approach to managing capital costs [20] - The tangible common equity to tangible assets ratio was 10.25%, indicating a solid capital position [21] Q&A Session Summary Question: Plans for increasing the lending team - The company plans to increase its lending team by up to 20%, with a current base of about 40 lenders, focusing on production staff [26][28] Question: Concerns about subprime loan concentration - Management clarified that there has not been a significant increase in subprime loans, and the data presented was updated to reflect current borrower credit scores [32][33] Question: Impact of redeemed subordinated debt - The redeemed subordinated debt was previously at 4.5% and would have increased to 8%, with no additional expenses incurred during the redemption [35][37] Question: Vulnerability of the commercial real estate book - Management acknowledged scheduled payoffs in the commercial real estate book but emphasized that they will not lower credit standards to retain loans [80][81]

Financial Data and Key Metrics Changes - In Q3, the company reported revenue of $13.7 billion, exceeding guidance and up 6% sequentially [22][23] - Non-GAAP gross margin was 40%, four percentage points better than guidance, driven by higher revenue and a favorable mix [23] - Earnings per share for Q3 were $0.23, compared to guidance of breakeven EPS, attributed to stronger gross margin and cost discipline [23] - Operating cash flow was $2.5 billion, with gross CapEx of $3 billion and positive adjusted free cash flow of $900 million [23] Business Line Data and Key Metrics Changes - Intel products revenue was $12.7 billion, up 7% sequentially, supported by strong demand in both client and server segments [25] - Client Computing Group (CCG) revenue was $8.5 billion, up 8% quarter over quarter, driven by a stronger TAM and Windows 11 refresh [25][26] - Data Center and AI (DCAI) revenue was $4.1 billion, up 5% sequentially, driven by improved product mix and higher enterprise demand [26][27] - Intel Foundry revenue was $4.2 billion, down 4% sequentially, but operating loss improved by $847 million due to favorable comparisons [29][30] Market Data and Key Metrics Changes - The company noted healthy customer purchasing behavior and inventory levels, with industry supply tightening materially [21] - The demand for server CPUs is expected to grow due to the accelerating build-out of AI infrastructure [21][27] - The client consumption total addressable market (TAM) is projected to approach 290 million units in 2025, marking two consecutive years of growth [26] Company Strategy and Development Direction - The company is focused on rebuilding its market position through AI and enhancing its x86 architecture to support hybrid compute environments [10][19] - Strategic partnerships, particularly with NVIDIA, are aimed at creating new classes of products that accelerate AI adoption [10][11] - The company is committed to improving its engineering and design execution, including the establishment of a central engineering group to unify functions [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding macroeconomic volatility but noted strong demand driven by AI and traditional compute [21] - The company is focused on shoring up its balance sheet and has secured approximately $20 billion in cash through strategic partnerships [23][24] - Management emphasized the importance of building long-term trust with customers in the foundry business and the need for improved yield and reliability [48][50] Other Important Information - The company is on track to launch its first Pentelic SKU by year-end, with additional SKUs expected in the first half of next year [12] - The company is prioritizing wafer capacity for server shipments over entry-level client parts due to tight supply conditions [33] - The company plans to maintain disciplined capital expenditures while being flexible to respond to demand [62] Q&A Session Summary Question: Foundry collaborations and increased confidence - Management indicated that collaborations, particularly with SoftBank, are enhancing confidence in the foundry business due to increased demand for AI infrastructure [38] Question: Gross margin outlook for 2026 - Management noted that while Altera's absence will be a headwind, they expect improvements in foundry gross margins driven by scale and leading-edge mix [42][44] Question: Customer commitments for foundry investments - Management emphasized the importance of building trust with customers and demonstrating yield improvements to secure commitments for foundry investments [48][50] Question: Supply constraints in server CPUs - Management acknowledged that shortages are widespread, particularly in Intel 10 and 7, and are working to manage demand and inventory [54][55] Question: Demand outlook for 2026 - Management indicated that demand is expected to outpace supply in both server and client markets, with potential improvements anticipated later in the year [60] Question: Investments in CapEx and product businesses - Management stated that the focus remains on deleveraging, but they are open to increasing CapEx if customer demand justifies it [62] Question: Update on NVIDIA relationship - Management highlighted the importance of the collaboration with NVIDIA, which is expected to create new product opportunities in the AI space [91][94]

McGrath RentCorp (NasdaqGS:MGRC) Q3 2025 Earnings Call October 23, 2025 05:00 PM ET Speaker0Ladies and gentlemen, thank you for standing by. Welcome to the McGrath RentCorp Third Quarter twenty twenty five Earnings Call. At this time, all conference participants are in a listen only mode. Later, we will conduct a question and answer session. This conference call is being recorded today, Thursday, 10/23/2025.Before we begin, note that the matters of the company management we'll be discussing today that are n ...

Financial Data and Key Metrics Changes - The company reported a core FFO per share of $1.89, a quarterly record and 13% higher than the same quarter last year [3][10] - Constant currency core FFO per share was $1.85, reflecting an 11% year-over-year increase [3] - AFFO per share and adjusted EBITDA increased by 16% and 14% year-over-year, respectively [3] - Operating revenue grew by 10%, contributing to strong earnings results [10][23] - Same capital cash NOI growth was 8% year-over-year, driven by a 7.8% increase in data center revenue [24] Business Line Data and Key Metrics Changes - Bookings in Q3 were $201 million at 100% share, with $162 million at Digital Realty's share [11][19] - The 0 to 1 megawatt plus interconnection category contributed $85 million in new leases, while greater than a megawatt leasing accounted for $76 million [11][21] - Interconnection leasing reached $20 million, marking a record quarter and a 13% increase from the previous record [11][21] Market Data and Key Metrics Changes - Leasing activity was globally diversified, with notable strength in the Americas, EMEA, and APAC [11] - The backlog at Digital Realty's share increased to $852 million, with $137 million of commencements offset by new bookings [21] - The company signed $192 million of renewal leases at an 8% blended increase on a cash basis [22] Company Strategy and Development Direction - The company aims to support the growing demand for scalable, connected infrastructure driven by digital transformation, cloud, and AI [5][6] - Digital Realty's established presence in key metros and relationships with utilities provide a competitive advantage in navigating infrastructure challenges [6][9] - The company is focused on delivering capacity that meets customer requirements while maintaining financial discipline to drive long-term value [28][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth due to a robust backlog and strong operational execution [3][10] - The anticipated demand for AI-oriented deployments is expected to remain strong, with over 50% of quarterly bookings related to AI use cases [9][10] - The company is increasing its core FFO guidance range for the full year 2025, reflecting better-than-expected operating performance [26][27] Other Important Information - Digital Realty received the EcoVadis Gold rating for business sustainability, placing it in the 97th percentile of assessed companies [16] - The company signed long-term renewable energy agreements to procure 500 gigawatt hours of clean baseload hydropower [16] Q&A Session Summary Question: Guidance for 2026 and growth levels - Management indicated a target of 10% top-line growth supported by a healthy backlog of over $550 million, despite some headwinds from maturing debt and lower interest income [32][33] Question: Demand from hyperscalers in major metro markets - Management noted robust dialogue with hyperscalers, leading to the largest pipeline on record, with significant interest in capacity blocks coming online in 2026 and 2027 [34][37] Question: Capacity to increase releasing spreads - Management highlighted strong pricing power in the less than a megawatt category, with expectations for continued healthy market rates [38] Question: Diversity of hyperscalers being engaged - Management confirmed ongoing discussions with a diverse array of hyperscalers, focusing on larger capacity blocks with established businesses [41][43] Question: M&A opportunities in the current landscape - Management stated that the strategy remains consistent, focusing on land acquisition, building purchases, and strategic company acquisitions [56] Question: Timeline for future developer capacity - Management indicated that significant capacity blocks are being prioritized for leasing, with ongoing customer interest in 2026 and 2027 deliveries [57][59]

Business First Bancshares (NasdaqGS:BFST) Q3 2025 Earnings Call October 23, 2025 05:00 PM ET Speaker3Hello and thank you for standing by. My name is Mark, and I will be your conference operator today. At this time, I would like to welcome everyone to Business First Bancshares Q3 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press sta ...

World Kinect (NYSE:WKC) Q3 2025 Earnings Call October 23, 2025 05:00 PM ET Speaker0Thank you for standing by, and welcome to World Connect Corporation's Third Quarter twenty twenty five Earnings Conference Call. I would now like to hand the call over to Brolio Medrano, Senior Director of FP and A and Investor Relations. Please go ahead.Speaker1Thank you, Latif, and good evening, everyone. Welcome to WorldConnect's third quarter twenty twenty five earnings conference call, which will be presented alongside o ...