Stryker (NYSE:SYK) Q4 2025 Earnings call January 29, 2026 04:30 PM ET Speaker2Welcome to the fourth quarter and full year 2025 Stryker Earnings Call. My name is Layla, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Following the conference, we will conduct a question-and-answer session. This conference call is being recorded for replay purposes. Before we begin, I would like to remind you that the discussions during this conference call will include for ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $136.4 million, up 8% from $126.5 million in the previous quarter and up 48% from $92.2 million in Q4 2024 [14] - GAAP gross margin for Q4 increased to approximately 57.6%, while non-GAAP gross margin was approximately 59.6% [14] - GAAP loss from operations for Q4 was 11%, and non-GAAP income from operations was 16% of net revenue [16] - Net cash flow from operating activities was approximately $10.4 million, with cash and cash equivalents totaling approximately $101.4 million at the end of Q4 [16] Business Line Data and Key Metrics Changes - Infrastructure revenue for Q4 was approximately $47 million, broadband revenue was approximately $58 million, connectivity revenue was approximately $18 million, and industrial multi-market revenue was approximately $14 million [14] - Infrastructure revenue grew 30% for the full year and 76% in Q4 year-over-year, driven by strong growth in data center optical interconnects and wireless infrastructure [8][12] - The broadband business is expected to decline year-over-year due to the transition to DOCSIS 4.0, with a seasonal decline expected in Q1 [27][28] Market Data and Key Metrics Changes - The company expects to achieve significant revenue from the Keystone PAM4 DSP family, projecting $100-$130 million in revenue for 2026 [9] - The cloud data centers are deploying 10-gigabit XGS-PON, with the company securing its first PON data center design win [10] - The company anticipates strong growth in the Ethernet market as its 2.5 gigabit Ethernet switch and PHY portfolio expands into commercial, enterprise, and industrial applications [13] Company Strategy and Development Direction - The company is focused on high-value multi-year growth markets, including data center connectivity, wireless infrastructure, and broadband access [6][8] - Investments are being made in areas of strategic importance to build a solid foundation for sustainable growth and profitability in 2026 and beyond [19] - The company aims to strengthen its position in the optical DSP market and expand its offerings in response to evolving market demands [44][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained growth expectations and market momentum, entering 2026 with strong momentum across its portfolio [6] - The company expects solid growth in 2026 driven by new design wins and expanding content opportunities across its product portfolio [18] - Management highlighted the competitive advantage of power efficiency and the importance of performance over pricing in the optical market [73] Other Important Information - The company repurchased $20 million of its common stock in Q4, reflecting confidence in its growth trajectory [6][16] - The company is experiencing improved visibility and robust bookings, which are expected to drive growth in 2026 [18] Q&A Session Summary Question: Can you talk about the PAM4 DSP business and its growth? - Management indicated strong traction and design wins in the PAM4 DSP market, with expectations for continued growth in 2026 and 2027 [21][22] Question: What is the trajectory for the broadband business? - Management expects a decline in the broadband business in the first half of the year due to the transition to DOCSIS 4.0, with potential recovery in the second half [27][28] Question: What is the magnitude of opportunity within the data center segment? - Management highlighted the significant potential in the data center market, particularly with PON as a control plane layer and the increasing sophistication of compute racks [33][34] Question: Can you discuss the share repurchase authorization? - Management conveyed that the share repurchase signals confidence in the balance sheet and cash flow improvement, with revenue stability and an improving outlook [37][38] Question: How is the competitive landscape evolving for optical products? - Management expressed confidence in strengthening their position in the optical market with the rollout of new products, including the 1.6 terabit solutions [44][45] Question: What are the biggest opportunities for market share gain in 2026? - Management identified optical transceivers, storage accelerators, PON market revenues, and wireless infrastructure growth as key areas for market share gain [76]

Financial Data and Key Metrics Changes - For 2025, the company reported net income before taxes of approximately $80 million, representing a 16.4% increase, while total revenue reached $284 million, up 10.6% from $257 million in 2024 [5][12] - The earnings per share (EPS) for Q4 was $0.65, with the annual EPS for 2025 at $2.21 basic and $2.18 diluted, reflecting increases of 12% and 11% respectively over 2024 [8][9] - Tangible book value grew significantly, ending 2025 at $12.19 compared to approximately $6.92 at the beginning of the year [9][13] Business Line Data and Key Metrics Changes - The alternative loan program (ALP) has shown strong performance, with a total of $820 million in originations and low levels of non-performing loans (NPLs) at $27.6 million [10][16] - The payments business contributed approximately $16.8 million of adjusted EBITDA in 2025, with expectations of $17.9 million in 2026 [19] - The insurance agency generated $740 million in pre-tax income for 2025, projected to increase to $1.6 million in 2026 [19] Market Data and Key Metrics Changes - The company opened 9,000 new depository accounts and reached a total of 34,000 active depository accounts, indicating strong market penetration [3][11] - Business deposits increased by $34 million in Q4 and $164 million for the year, while consumer deposits grew by $167 million in Q4 and $293 million for the year [11][12] Company Strategy and Development Direction - The company focuses on serving independent business owners and small to medium-sized businesses (SMBs), emphasizing the underserved nature of this demographic [5][7] - The strategic acquisition of the National Bank of New York City in January 2023 has significantly expanded the company's asset base, now approximately $2.4 billion to $2.5 billion [6][12] - The company aims to leverage technology to provide a frictionless banking experience, enhancing customer service and operational efficiency [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing a strong start to 2026 and the successful closing of a major securitization deal [9][10] - The operating environment is characterized as K-shaped, with varying performance across different market segments, but overall business confidence is reported as good [40][41] - The company anticipates continued growth in SBA loan originations and expects to benefit from changes in SBA regulations that may favor its business model [36][38] Other Important Information - The efficiency ratio at the holding company improved from 63.2% to 58.3%, with assets up 33% [12][25] - The company has maintained healthy capital ratios while managing the runoff of its non-bank lending subsidiary, NSBF, which is expected to continue to decline in losses [12][22] Q&A Session Summary Question: What drove the increase in deposit account openings? - Management attributed the increase to the frictionless digital access for both business and consumer deposits, along with strong margins and stable deposit rates [33][34] Question: What are the expectations for non-interest income trends? - Management expects the 7(a) business to pick up again, despite recent disruptions in the SBA world [36][37] Question: How is the company positioned in the SBA loan market? - Management believes their underwriting and business services create better long-term customer relationships, resulting in performance that meets industry averages [53][54]

Schneider National (NYSE:SNDR) Q4 2025 Earnings call January 29, 2026 04:30 PM ET Speaker6Thank you for standing by. My name is Jale, and I will be your conference operator today. At this time, I would like to welcome everyone to the Schneider National Fourth Quarter 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 star, followed ...

Financial Data and Key Metrics Changes - Revenue for Q2 2026 was $3 billion, up 25% year-over-year, driven by strong demand for Nearline drives [10] - Earnings per share (EPS) was $2.13, an increase of 78% year-over-year [12] - Gross margin improved to 46.1%, up 770 basis points year-over-year and 220 basis points sequentially [11] - Operating income was slightly above $1 billion, translating into an operating margin of 33.8% [11] - Operating cash flow for the quarter was $745 million, with capital expenditures of $92 million, resulting in free cash flow of $653 million [12] Business Line Data and Key Metrics Changes - Cloud segment represented 89% of total revenue at $2.7 billion, up 28% year-over-year [11] - Client segment accounted for 6% of total revenue at $176 million, up 26% year-over-year [11] - Consumer segment represented 5% of revenue at $168 million, down 3% year-over-year [11] Market Data and Key Metrics Changes - The company shipped over 3.5 million units of its latest generation ePMR products, offering capacities up to 32 TB [10][11] - The demand for higher capacity storage solutions is driven by the growth of AI and cloud technologies [5][6] Company Strategy and Development Direction - The company is focusing on increasing drive areal density and accelerating HAMR and ePMR roadmaps to meet customer demands [5][6] - A strategic investment in Qolab was announced to advance next-generation nanofabrication processes [9] - The company is hosting an innovation day to share updated roadmaps for HAMR and ePMR products [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for storage solutions driven by AI and cloud growth [4][5] - The company anticipates revenue for Q3 2026 to be $3.2 billion, reflecting approximately 40% year-over-year growth [14] - Gross margin is expected to be between 47%-48% for the next quarter [14] Other Important Information - The company returned $1.4 billion to shareholders through share repurchases and dividends since the launch of its capital return program [13] - A quarterly cash dividend of $12.50 per share was approved, payable on March 18, 2026 [13] Q&A Session Summary Question: Gross margin guidance and durability of incremental margin - Management confirmed a stable pricing environment and effective cost control, leading to an expected gross margin of 47%-48% [16][18] Question: Purchase orders and pricing strategy - Management highlighted the value delivered to customers and the stable pricing environment, allowing for better economics in long-term agreements [24][26] Question: Customer engagement and contracts - The company has developed a customer-centric approach, resulting in longer-term contracts and improved relationships with hyperscale customers [31][33] Question: UltraSMR mix and gross margins - The UltraSMR mix has crossed 50% and is expected to increase, positively impacting gross margins due to its software-based nature [38][40] Question: Yields and reliability of ePMR products - Yields on ePMR products are in the low 90s%, with positive feedback on reliability from customers [44] Question: HAMR roadmap and investments - The qualification process for HAMR has been pulled forward, with expectations of neutral to accretive gross margins once ramped [53][70] Question: Revenue per exabyte and mix changes - Revenue per exabyte is driven by strong demand from cloud customers, with stable pricing contributing to growth [78]

Financial Data and Key Metrics Changes - Revenue for the second quarter was $3,025 million, up 31% quarter-over-quarter and 61% year-over-year, exceeding guidance of $2,550-$2,650 million [15] - Non-GAAP gross margin for the second quarter was 51.1%, up from 29.9% in the prior quarter, and above guidance of 41%-43% [15] - Non-GAAP EPS for the second quarter was $6.20, up from $1.22 in the prior quarter, exceeding guidance of $3.00-$3.40 [16] Business Line Data and Key Metrics Changes - Data center revenue was $440 million, up 64% sequentially [15] - Edge revenue was $1,678 million, up 21% sequentially [15] - Consumer revenue was $907 million, up 39% quarter-over-quarter [15] Market Data and Key Metrics Changes - The NAND market is experiencing structural evolution driven by AI, with data center demand significantly increasing [11] - Bids were up 22% year-over-year and low single digits quarter-over-quarter [15] - The company expects the data center to become the largest market for NAND in 2026 [20] Company Strategy and Development Direction - The company is transitioning to multi-year agreements with customers to ensure supply certainty and better align planning cycles with demand [4] - Focus on disciplined execution and innovation in NAND technology to support long-term demand and profitability [10] - Continued investment in R&D and capital expenditures to maintain competitive advantage in the NAND market [18] Management's Comments on Operating Environment and Future Outlook - Management noted that customer demand is expected to remain well above supply beyond calendar year 2026 [10] - The company anticipates a structural shift in the NAND market that will reduce cyclicality and create higher long-term margins [11] - Management expressed optimism about the evolving business practices in the data center market, which is becoming increasingly strategic [70] Other Important Information - The company generated $843 million in adjusted free cash flow, representing a 27.9% free cash flow margin [17] - The Yokkaichi joint venture with Kioxia has been extended through December 31, 2034, ensuring continued product supply [18] - The company plans to maintain capital expenditure plans while supporting mid- to high-teens bit growth through the BiCS8 transition [12] Q&A Session Summary Question: How are you thinking about long-term agreements given the rapid price increases? - Management acknowledged the pros and cons of long-term agreements and emphasized the need for confidence in sustained demand to justify such agreements [24][29] Question: What are your plans regarding supply-demand balance and potential supply additions? - Management indicated that they are focused on aligning supply with long-term demand and are cautious about increasing capital spending without visibility into sustained demand [25][34] Question: Can you quantify incremental demand for NAND related to AI infrastructure? - Management noted that they are seeing significant increases in exabyte demand in the data center, projecting high 60s exabyte growth for 2026, primarily driven by AI [47] Question: What is the breakdown between TLC and QLC in the Enterprise SSD opportunity? - Management stated that the current mix is predominantly TLC, with QLC products expected to contribute to growth once they begin shipping [42] Question: How do you view the urgency of customers committing to NAND supply? - Management expressed that there is a growing urgency among customers, particularly in the data center market, to secure supply commitments for the future [68]

Financial Data and Key Metrics Changes - Revenue in Q3 fiscal 2026 increased by 12% year-over-year and 28.5% on a fiscal year-to-date basis, reaching $6.1 million compared to $5.4 million in Q3 fiscal 2025 [3][12] - Gross margin decreased to 52.7% in Q3 fiscal 2026 from 54% in Q3 fiscal 2025, primarily due to product mix [12] - Operating loss for Q3 fiscal 2026 was $6.9 million, compared to an operating loss of $4.1 million in the prior year [13] - Net loss in Q3 fiscal 2026 was $3 million, or $0.09 per diluted share, compared to a net loss of $3.2 million, or $0.11 per diluted share in the previous quarter [14][15] - Cash and cash equivalents increased to $70.7 million as of December 31, 2025, primarily due to $46.9 million in net proceeds from a registered direct offering [17] Business Line Data and Key Metrics Changes - Sales to KYEC were $1.1 million, or 17.9% of net revenues, down from $1.2 million, or 22.7% in the same period a year ago [10] - Sales to Nokia increased to $675,000, or 11.1% of net revenues, compared to $239,000, or 4.4% in the same period a year ago [11] - Military defense sales accounted for 28.5% of third-quarter shipments, slightly down from 30% in the comparable quarter a year ago [11] Market Data and Key Metrics Changes - The company is focusing on defense applications, which have shown early success, particularly with the U.S. Department of Defense [21] - The partnership with G2 Tech aims to leverage the company's technology for real-world applications, including drones and smart cities [24] Company Strategy and Development Direction - The company is advancing its APU roadmap and hardware development, with plans to tape out Plato in early 2027 [3] - The partnership with G2 Tech for the Sentinel program is expected to enhance the company's capabilities in autonomous perimeter security [4] - The focus is on non-dilutive R&D funding through government defense programs and strategic partnerships to support development [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong demand from major customers in the first half of calendar 2026 [3] - The company anticipates receiving over $1 million in government funding for the Sentinel project, which will offset R&D expenses [6] - The outlook for Q4 fiscal 2026 is net revenues in the range of $5.7 million to $6.5 million, with a gross margin of approximately 54% to 56% [18] Other Important Information - The company is expanding cash disclosures in its quarterly earnings to provide better insights into cash consumption and generation [16] - Total operating expenses in Q3 fiscal 2026 were $10.1 million, up from $7 million in the prior year [12] Q&A Session Summary Question: Importance of defense applications for Gemini 2 - Management highlighted that military and defense sectors have been the quickest to adopt their technology, with successful partnerships and applications already established [21][24] Question: Timelines for government funding - Management indicated a continuous pipeline of submissions for SBIRs and other funding opportunities, emphasizing the non-dilutive nature of this funding [26]

West Bancorporation (NasdaqGS:WTBA) Q4 2025 Earnings call January 29, 2026 03:00 PM ET Company ParticipantsBrad Peters - Minnesota Group PresidentBrad Winterbottom - Bank PresidentDave Nelson - CEOHarlee Olafson - Chief Risk OfficerJane Funk - CFOTodd Mather - Chief Credit OfficerConference Call ParticipantsNathan James Race - Managing Director and Senior Research AnalystOperatorLadies and gentlemen, thank you for standing by. My name is Colby, and I'll be your conference operator today. At this time, I'd l ...

West Bancorporation (NasdaqGS:WTBA) Q4 2025 Earnings call January 29, 2026 03:00 PM ET Company ParticipantsBrad Peters - Minnesota Group PresidentBrad Winterbottom - PresidentDave Nelson - CEOHarlee Olafson - Chief Risk OfficerJane Funk - CFOTodd Mather - Chief Credit OfficerConference Call ParticipantsNathan Race - Managing Director and Senior Research AnalystOperatorLadies, and gentlemen, thank you for standing by. My name is Colby, and I'll be your conference Operator today. At this time, I'd like to wel ...

West Bancorporation (NasdaqGS:WTBA) Q4 2025 Earnings call January 29, 2026 03:00 PM ET Company ParticipantsBrad Peters - Minnesota Group PresidentBrad Winterbottom - Bank PresidentDave Nelson - CEOHarlee Olafson - Chief Risk OfficerJane Funk - CFOTodd Mather - Chief Credit OfficerConference Call ParticipantsNathan James Race - Managing Director and Senior Research AnalystOperatorLadies and gentlemen, thank you for standing by. My name is Colby, and I'll be your conference operator today. At this time, I'd l ...