Financial Data and Key Metrics Changes - Warrior achieved a record high quarterly sales volume of 2.9 million short tons in Q4 2025, a 53% increase compared to 1.9 million tons in Q4 2024 [14] - Total sales volume for 2025 was 9.6 million short tons, a 21% increase year-over-year, while production volume reached 10.2 million short tons, a 24% increase from 2024 [6][7] - Adjusted EBITDA for Q4 2025 was $93 million, a 31% increase from Q3 2025, and a 75% increase from $53 million in Q4 2024 [21][23] - Net income for Q4 2025 was $23 million, or $0.44 per diluted share, compared to $1 million or $0.02 per diluted share in Q4 2024 [23] Business Line Data and Key Metrics Changes - Blue Creek mine began longwall operations in Q4 2025, contributing 1.3 million tons of production, exceeding expectations [15][16] - Mine No. 4 set a new record high output for both sales and production volume, continuing its strong performance [7] - Cash costs per ton decreased to approximately $94 in Q4 2025 from $120 in the same quarter last year, reflecting lower overall spending and the contribution of low-cost Blue Creek tons [27] Market Data and Key Metrics Changes - The PLV FOB Australia index averaged $182 per short ton in Q4 2025, marking a 9% increase from Q3 2025 [9] - Chinese steel export volumes for 2025 reached a record high of 119 million metric tons, a 7.2% increase year-over-year, while crude steel production decreased by 4.4% [8] - The average East Coast HVA index price decreased by $6 per ton, or 4%, in Q4 2025 compared to Q3 2025 [10][11] Company Strategy and Development Direction - Warrior plans to ramp production in line with contractual volumes to support pricing discipline while maximizing long-term value [17] - The company aims to reduce coal inventory levels to just below 1 million tons by the end of 2026 [35] - Warrior's strategy includes significant investments in Blue Creek, which is expected to enhance the company's cost structure and drive margin expansion [19][38] Management's Comments on Operating Environment and Future Outlook - Management expects steelmaking coal markets to remain consistent with 2025 levels, entering 2026 from a position of strength with higher contracted volumes and record production capacity [32] - The company anticipates total sales and production volumes to be significantly higher in 2026 due to the early start of Blue Creek longwall operations [32] - Management expressed cautious optimism regarding pricing, noting that recent disruptions in global mining production may be temporary [36] Other Important Information - Warrior's total available liquidity at the end of Q4 2025 was $484 million, consisting of cash and cash equivalents of $300 million, short-term investments of $43 million, and $141 million available under the ABL Facility [31] - The company plans to spend the remaining construction CapEx of $50-$75 million on the Blue Creek project in Q1 2026 [33] Q&A Session Summary Question: What is the PLV price assumption for 2026? - The PLV assumption is a range of $185-$215 per short ton [41][43] Question: How should working capital be expected to change in 2026? - Working capital is expected to build in the first half of the year due to increased accounts receivable and inventory [44][65] Question: What are the payments for federal leases? - The payments for federal leases are about $9 million per year for four years [46][48] Question: How will cash flow be managed in 2026? - The company expects to be free cash flow positive in the second half of 2026, depending on pricing [56][58] Question: What is the outlook for Mine No. 4's production? - Mine No. 4 is expected to continue running at levels similar to the previous year, maintaining strong performance [88]

Financial Data and Key Metrics Changes - As of December 31, 2025, the company had a cash balance of approximately $7 million [13] - Consolidated operating expenses for the three months ended December 31, 2025, were approximately $2.06 million, an increase of $250,000 or 13.6% compared to the same period last year [13] - The operating loss for the quarter increased to $2.06 million compared to $1.81 million in the prior year period [13] - For the nine-month period, operating expenses decreased significantly to $5.36 million, down $1.98 million or 27% from $7.34 million last year [15] Business Line Data and Key Metrics Changes - The company is advancing its Hemopurifier platform while maintaining disciplined cost control [5] - Continued enrollment and treatment progress in the Australian oncology trial, with two Hemopurifier treatments completed in the second cohort [7][9] - The R&D team is exploring the compatibility of the Hemopurifier with a simplified blood treatment system, which could enhance clinical and commercial flexibility [10] Market Data and Key Metrics Changes - There has been an uptick in the number of interested potential participants in the Australian oncology trial since contracting with TrialFax and Dedicated for advertising and pre-screening [8] - The study is designed to examine the number of Hemopurifier treatments needed to decrease extracellular vesicle concentrations and improve the body's ability to attack tumor cells [9] Company Strategy and Development Direction - The company is focused on advancing the Hemopurifier platform and exploring its potential as a multi-indication therapeutic [5] - The integration of the Hemopurifier with the SLAMB system could facilitate its use in oncology units and infusion centers, reducing invasiveness for patients [23][24] - The company aims to build on preclinical data in Long COVID and explore other indications related to extracellular vesicles [11][12] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of cost containment while advancing clinical trials and R&D efforts [27] - The company is currently focused on completing the Australian trial and is not planning to expand to other regions like India at this time [75][78] Other Important Information - The next earnings call for the fiscal fourth quarter, ending March 31, 2026, will coincide with the filing of the annual report in June 2026 [16] Q&A Session Summary Question: Clarification on Cohort 2 treatment duration - The follow-up period remains the same, but participants in Cohort 2 will receive two Hemopurifier treatments instead of one [19] Question: Impact of SLAMB system on treatment administration - The SLAMB system would allow for a less invasive catheter insertion, making it easier for patients and hospital staff to administer treatments [24] Question: Cost-effective approach in R&D - The company is trying to keep costs down by conducting work in-house and limiting outside lab involvement while still advancing research [27] Question: Timeline for Data Safety Monitoring Board's decision - The board is expected to provide a decision on advancing to the third cohort on the same day or the next business day after their meeting [36] Question: Need for Cohort 3 - Management believes it is important to investigate the third cohort to assess the potential benefits of three treatments compared to two [62] Question: Regulatory hurdles for SLAMB system integration - The SLAMB system is not yet approved, and the company would need to conduct safety tests before using it with the Hemopurifier [47]

Financial Data and Key Metrics Changes - In Q4 2025, total revenues reached $2.49 billion, reflecting a year-over-year increase of 28.9% and exceeding guidance of $2.3 billion to $2.4 billion [18] - For the fiscal year 2025, total revenue was $9 billion, with a non-GAAP gross margin of 64.6% and an operating margin of 48.2% [6][22] - Net income for Q4 was $1.05 billion, marking the first time the company surpassed $1 billion in net income for a quarter [22] - Diluted earnings per share for Q4 was $0.82, up 24.2% year-over-year, while for the fiscal year, it was $2.98, a 28.4% increase [23] Business Line Data and Key Metrics Changes - Cloud and AI titans contributed 48% to annual customer sector revenue, while enterprise and financials accounted for 32%, and AI and specialty providers contributed 20% [7] - Services and subscription software represented approximately 17.1% of revenue in Q4, down from 18.7% in Q3 [18] - The core sector revenue was driven by high-performance switching, contributing 65% of total revenue [9] Market Data and Key Metrics Changes - International revenues for Q4 were $528.3 million, or 21.2% of total revenue, up from 20.2% in the previous quarter [19] - The company reported strong growth in both Asia and Europe, with international growth exceeding 40% annually [6] Company Strategy and Development Direction - The company aims for aggressive growth in AI networking, raising its 2026 revenue guidance to $3.25 billion for AI centers and maintaining a goal of $1.25 billion for cognitive campus and branch [27] - The strategy includes expanding into new markets and enhancing product offerings, particularly in AI and cloud networking [12][14] - The company is focused on maintaining its leadership in high-performance switching and expanding its partnerships with AI and cloud titans [9][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 25% annual growth in 2026, despite challenges related to supply chain constraints and rising costs [17][28] - The company is optimistic about the demand for networking solutions driven by AI and cloud technologies, indicating a growing total addressable market exceeding $100 billion [17] - Management acknowledged the impact of inflation and supply chain issues on operations but emphasized a commitment to innovation and customer satisfaction [16][28] Other Important Information - The company repurchased $620.1 million of its common stock in Q4 at an average price of $127.84 per share, with a total of $1.6 billion repurchased in fiscal year 2025 [23][24] - The total deferred revenue balance increased to $5.4 billion, with product deferred revenue rising by approximately $469 million compared to the previous quarter [26] Q&A Session Summary Question: What are the factors affecting the potential new 10% customers? - Management indicated that acceptance criteria and timing are critical factors, along with demand and supply chain considerations [33] Question: What is the cautious outlook for the rest of the year? - Management clarified that visibility is affected by customer CapEx and the timing of new product shipments, particularly related to AI [41] Question: Can you quantify the revenue and gross margin impact from memory dynamics? - Management acknowledged challenges in the memory market and indicated that while they are comfortable with their guidance, there may be price increases for certain products [50][51] Question: How much of the AI revenue guidance is based on scale-up networking opportunities? - Management noted that current configurations are a mix of scale-out and scale-up, with expectations for significant growth in AI networking [58] Question: How does the company plan to participate in the build-out of model builders' infrastructure? - Management highlighted the importance of network infrastructure for model builders and indicated plans to collaborate with cloud titans [64]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported worldwide revenue of $1.26 billion, a 13% increase from $1.11 billion in Q4 2024, with organic growth at 12% [17] - U.S. revenue reached $892 million in Q4 2025, up 11% from $803 million in Q4 2024 [17] - International revenue grew 18% to $368 million in Q4 2025, with organic growth at 15% [18] - Gross profit for Q4 was $799.8 million, representing 63.5% of revenue, an increase from 59.4% in Q4 2024 [19] - Operating income was $331.5 million, or 26.3% of revenue, compared to $209.5 million, or 18.8% of revenue in Q4 2024 [20] - Adjusted EBITDA for Q4 was $422.2 million, or 33.5% of revenue, up from $300.1 million, or 27.0% of revenue in Q4 2024 [20] - The company closed the quarter with approximately $2 billion in cash and cash equivalents, indicating strong financial flexibility [21] Business Line Data and Key Metrics Changes - The rollout of the Dexcom G7 15-Day system has received positive feedback, enhancing customer experience and potentially increasing market share [8][9] - The company is focusing on expanding its product portfolio, including the introduction of Stelo and a new CGM system in international markets by 2026 [14] Market Data and Key Metrics Changes - The international business showed particular strength in Germany, the United Kingdom, and France, with France being one of the fastest-growing markets due to Type 2 access expansion [18] - The company anticipates that international market opportunities could surpass the U.S. market in the future [14] Company Strategy and Development Direction - The company aims to be the premier glucose sensing solution, focusing on improving sensor accuracy, reliability, and connectivity [8] - A strategic priority is to enhance customer experience across all stakeholders, including prescribers and caregivers, through new digital support systems and AI integration [9] - The company plans to expand its international market share by increasing awareness and access to CGM technology globally [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in metabolic health management, particularly with upcoming Medicare coverage for Type 2 non-insulin users, which could provide access to approximately 12 million people [28] - The company expects total revenue for 2026 to be in the range of $5.16 billion to $5.25 billion, reflecting growth of 11%-13% [22] - Management highlighted the importance of maintaining gross margin improvements and operational efficiencies while investing in new product launches and manufacturing capabilities [23] Other Important Information - The company has surpassed $1 billion in free cash flow for the first time in 2025, indicating strong cash generation capabilities [22] - An Investor Day is planned for May 2026 to provide further details on the company's outlook [16] Q&A Session Summary Question: Discussion on the glucose journey and potential coverage - Management believes the company is in the early stages of addressing metabolic health issues, with significant growth opportunities as coverage expands for Type 2 non-insulin users [26][28] Question: CMS proposal for Type 2 non-insulin coverage - Management is optimistic about upcoming CMS coverage decisions and expects to see results from a randomized control trial in mid-2026 [32][35] Question: Impact of the 15-Day product on margins and new markets - The 15-Day product is expected to contribute to margins over time, with significant opportunities for international expansion [38][41] Question: Operating expenses and investment in manufacturing - The increase in operating expenses is primarily due to investments in the new Ireland manufacturing facility, which will enhance future production capabilities [46][49] Question: Utilization rates among different user segments - Utilization rates remain stable across various user segments, with high rates observed in Type 1 and Type 2 insulin users [52][54] Question: 2026 revenue outlook and new patient dynamics - Revenue growth will depend on patient retention, utilization, and pricing, with expectations for continued strong performance in new patient additions [60][62] Question: International growth strategy and competition - The company aims to close the revenue gap with competitors by expanding coverage and product offerings in international markets [82][84]

Expedia Group (NasdaqGS:EXPE) Q4 2025 Earnings call February 12, 2026 04:30 PM ET Company ParticipantsAriane Gorin - CEOEric Sheridan - Managing DirectorLee Horowitz - Co-Head of Internet Equity ResearchMark Mahaney - Senior Managing DirectorNaved Khan - Managing DirectorRob Bevegni - VP of Investor RelationsScott Schenkel - CFOConference Call ParticipantsConor Cunningham - Director and Travel and Transports AnalystDeepak Mathivanan - Senior Equity Research AnalystJed Kelly - Managing Director and Equity Re ...

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $17.6 million and full-year revenue of approximately $71.6 million, representing about 11% growth over 2024 [5][11] - Full year gross margin was 82.1%, down from 85.8% in 2024, reflecting inventory reserves and product mix changes [12] - Fourth quarter gross margin was 81.2%, compared to 87.6% for the same period last year [13] Business Line Data and Key Metrics Changes - Approximately 90% of revenue comes from about 200 burn and trauma centers, with a focus on increasing adoption and utilization of products like RECELL, Cohealyx, and PermeaDerm [6][7] - The Cohealyx I post-market study is fully enrolled, and the PermeaDerm I study is nearing full enrollment, with data expected later in 2026 [8] Market Data and Key Metrics Changes - Six of the seven Medicare administrative contractors have published payment rates for RECELL procedures, which is expected to restore confidence among clinicians [6] - The company is taking a disciplined distributor-led approach in select international markets, focusing on establishing operational readiness [9] Company Strategy and Development Direction - The company aims to drive disciplined execution, refine commercial focus, and position for growth in 2026, with a strategy centered around an integrated platform of products [4][10] - The company expects full year revenue of $80 million to $85 million in 2026, representing growth of approximately 12% to 19% over 2025 [10] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of predictable reimbursement for products and the need for increased adoption and utilization by clinicians [6][18] - The company is focused on maintaining disciplined control of operating costs and supporting revenue growth with a stable cost structure [17] Other Important Information - The company refinanced its debt through a new credit facility, which provides more flexibility and reduces covenant risk [15][16] - The fourth quarter marked the third consecutive quarter of improvement in net cash use, declining from $10.1 million in Q2 to $5.1 million in Q4 [15] Q&A Session Summary Question: Guidance on revenue covenants and growth pace - Management clarified that the $15.4 million covenant is not a guidance figure and that they expect growth to continue from Q4 into Q1 and throughout the year [20][21] Question: Reimbursement dynamics affecting 2025 - Management confirmed engagement with all seven MACs and expressed optimism about the seventh MAC publishing payment rates soon [30][31] Question: Customer experience with Cohealyx and PermeaDerm - Management discussed the process of working with champions in accounts to facilitate the adoption of Cohealyx and PermeaDerm, noting early positive experiences [37][38] Question: Drivers of growth for 2026 guidance - Management indicated that growth will come from increased utilization within existing accounts and contributions from Cohealyx and PermeaDerm [49]

Financial Data and Key Metrics Changes - The company reported $166 million in revenue for Q4 2025, representing a 1% increase year-over-year and exceeding the high end of guidance [20][21] - Full-year revenue for 2025 was $599 million, excluding $44 million from patent litigation settlements [6][20] - Gross margin for Q4 was 68%, up from 67% in the prior year, driven by lower inventory write-downs and reduced royalty costs [22] - Operating expenses decreased by 18% in Q4, primarily due to lower legal and personnel costs [23] Business Line Data and Key Metrics Changes - Total consumables revenue increased by 6%, with single-cell consumables revenue up 3% and spatial consumables revenue up 14% [21] - Single-cell consumables volumes grew at a double-digit rate each quarter, driven by the adoption of newer, lower-cost products like Flex [7][21] - Spatial consumables revenue growth was driven by strong demand for Xenium, with existing customers increasing utilization [8][21] Market Data and Key Metrics Changes - Revenue from the Americas declined by 6%, while EMEA and APAC regions grew by 7% and 9%, respectively [22] - The Americas faced challenges due to a subdued academic and government funding environment, while EMEA performed better than expected due to late-quarter orders [22] Company Strategy and Development Direction - The company aims to leverage advancements in AI and biology measurement technologies to drive growth, focusing on large-scale studies and partnerships [12][14] - There is a strategic push into clinical applications, with collaborations to generate clinical evidence and support diagnostic applications [17][51] - The company plans to continue investing in innovation while managing costs effectively to strengthen its financial position [11][23] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remained challenging, with subdued customer spending and ongoing funding uncertainties impacting purchasing decisions [6][19] - Despite these challenges, there is optimism about underlying demand and the potential for growth in 2026, with revenue guidance set at $600 million to $625 million [24][25] - Management expressed confidence in the company's position and the opportunities ahead, particularly in AI-driven projects and translational research [18][56] Other Important Information - The company increased its cash balance by over $100 million year-over-year, reflecting disciplined cost management [11][23] - The launch of the Flex Apex assay is expected to drive significant growth in single-cell applications [9][42] Q&A Session Summary Question: Can you comment on ordering patterns and expectations for academic and pharma? - Management indicated that the environment remains steady but cautious, with ongoing uncertainty in academic funding impacting customer sentiment [30] Question: How did volume growth and pricing impact single-cell consumables? - Management noted that reaction growth was 22% for the full year, with Q4 seeing over 30% volume growth due to the Flex assay [36] Question: What are the expectations for clinical translational space? - Management is excited about the potential for clinical applications and is pursuing initiatives to generate clinical evidence while also enabling existing customers [51] Question: How is the company addressing competitive dynamics? - Management feels confident in its competitive position, citing continuous innovation and strong customer feedback on products like Xenium [76] Question: What are the plans for cash generation and investment? - Management emphasized the importance of maintaining a strong balance sheet to pursue strategic opportunities and investments in innovation [63]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $20.1 million, up 16% sequentially and 30% year-over-year, exceeding guidance [20] - Full year 2025 total revenue was $70.6 million, a 22% increase year-over-year [20] - Annual contract value plus royalties reached $83.6 million, a 28% year-over-year increase, marking a new record [21] - Remaining performance obligations (RPO) totaled $117 million, representing a 32% year-over-year increase, another record high [21] - Non-GAAP gross profit for Q4 was $18.5 million, with a gross margin of 92% [22] - Non-GAAP operating loss for Q4 was $2.2 million, above the top end of guidance [24] - GAAP net loss for Q4 was $8.5 million, with a diluted net loss per share of $0.19 [25] Business Line Data and Key Metrics Changes - The royalty stream increased by 50% year-over-year, with Q4 setting a new record [20] - FlexGen, an AI-driven smart NoC IP product, saw strong customer adoption, licensed for over 30 production device deployments [11] - Ncore, a cache coherent interconnect IP product, also experienced strength in licensing across various edge and server applications [12] Market Data and Key Metrics Changes - The largest impacts on revenue were seen in enterprise computing, automotive, and consumer electronics markets [7] - The number of large royalty reporters tripled in the last two years, indicating a diversified customer base [20] Company Strategy and Development Direction - The acquisition of Cycuity enhances Arteris' product portfolio, focusing on semiconductor cybersecurity assurance [8] - The company aims to address market concerns about increasing cybersecurity threats in semiconductor designs [9] - Arteris is positioned to support semiconductor applications in the AI era across various sectors, including automotive and aerospace [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, expecting to report a non-GAAP operating profit as early as Q4 2026 [28] - The company anticipates continued strong demand for its products driven by the rise of AI and efficient data movement in semiconductors [7] Other Important Information - Free cash flow was positive at $3 million for Q4 and $5.3 million for the full year [26] - The company ended the year with $59.5 million in cash and no financial debt [26] Q&A Session Summary Question: Cross-sell opportunities and customer segments - Management highlighted that hardware security assurance is a growing issue, opening significant cross-sell opportunities across various semiconductor companies [30][31] Question: NXP's expanded use of Arteris solutions - Management confirmed that NXP is now using four solutions, indicating increased interest in deploying a complete suite of offerings [34][35] Question: Strength in royalties and market segments - Management noted that the growth in royalties is attributed to both customer diversification and the increase in large royalty reporters across various segments, particularly automotive [37][38] Question: Impact of security acquisition on P&L - Management clarified that approximately $7 million of the projected revenue for 2026 is expected from the Cycuity acquisition, with a slight contribution to operating loss anticipated [45][46]

Financial Data and Key Metrics Changes - The company reported $166 million in revenue for Q4 2025, representing a 1% increase year-over-year and exceeding the high end of guidance [20][21] - Full-year revenue for 2025 was $599 million, excluding $44 million from patent litigation settlements [6][20] - Gross margin improved to 68% in Q4 2025 from 67% in the prior year, driven by lower inventory write-downs and reduced royalty costs [22] Business Line Data and Key Metrics Changes - Total consumables revenue increased by 6%, with single-cell consumables revenue up 3% and spatial consumables revenue up 14% [21] - Single-cell consumables volumes grew at a double-digit rate each quarter, primarily due to the adoption of the lower-cost FLEX assay [7][21] - Instrument revenue declined by 36%, with Chromium instruments down 44% and spatial instruments down 30% [21] Market Data and Key Metrics Changes - Revenue from the Americas declined by 6%, while EMEA and APAC regions grew by 7% and 9%, respectively [22] - The Americas faced challenges due to a subdued funding environment, while EMEA benefitted from late-quarter orders [22] Company Strategy and Development Direction - The company aims to leverage advancements in AI and biology measurement technologies to drive growth, focusing on large-scale studies and translational research [12][14] - Plans to enhance clinical applications of single-cell and spatial analysis through collaborations with academic medical centers [17][49] - The company is committed to continuous innovation and expects 2026 to be a pivotal year for new product capabilities [18] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging operating environment in 2025, with subdued customer spending and ongoing funding uncertainties impacting purchasing decisions [6][19] - Despite these challenges, the company is optimistic about future growth driven by strong demand for its solutions and a solid financial position [11][19] - The outlook for 2026 includes revenue guidance of $600 million to $625 million, reflecting a stable funding environment and anticipated growth in consumables [24] Other Important Information - The company increased its cash balance by over $100 million year-over-year, reflecting disciplined cost management [11][23] - The launch of the FLEX APEX assay is expected to drive significant adoption and new applications in the single-cell market [9][41] Q&A Session Summary Question: Can you comment on ordering patterns and expectations for academic and pharma? - Management indicated that the environment remains steady but cautious, with ongoing uncertainty in academic funding impacting customer sentiment [30] Question: Was volume growth enough to offset pricing in single-cell consumables? - Management noted that in Q4, single-cell consumables saw over 30% volume growth, contributing to overall revenue growth despite pricing pressures [36] Question: What are the expectations for the clinical translational space? - The company is excited about future clinical applications and is pursuing a hybrid strategy to enable clinical evidence generation while supporting existing customers [49] Question: How is the company addressing competitive dynamics? - Management expressed confidence in their competitive position, highlighting continuous innovation and the strong performance of the Xenium platform [77] Question: What are the plans for cash generated in 2026? - The company aims to maintain a strong balance sheet to pursue strategic investments and opportunities as they arise [62]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $3.9 million, up from $3.8 million in the prior year period [12] - Subscription revenue was $3.2 million, compared to $3.0 million in the prior year, representing 81% of total revenue [12] - Services revenue increased to $758,000 from $743,000 in the prior year [12] - Gross profit rose to $2.6 million from $2.5 million, with a gross profit margin of 66% [13] - Net loss improved to $100,000 from a loss of $600,000 in the prior year [14] - Adjusted EBITDA was positive at $122,000, compared to a negative $193,000 in the prior year [14] Business Line Data and Key Metrics Changes - Core products accounted for 60% of total revenue, growing 17% to $2.4 million from $2.0 million [6] - HawkSearch represented 63% of subscription revenue, increasing to $2 million from $1.9 million [6] - Average ARR per customer increased by 12% to $28,000 from $25,000 [7] - Average subscription per customer rose to $33,000 from $30,000 [7] Market Data and Key Metrics Changes - New customer acquisition continued to grow, with 13 new licenses sold, totaling $1.2 million in contract value [7] - More than half of new license sales included AI products [7] - HawkSearch was ranked number 1 in Gartner's 2025 Critical Capabilities Report, indicating strong market positioning [8] Company Strategy and Development Direction - The company aims to increase HawkSearch and core products to over 70% of overall revenue this year [11] - Focus on product innovation, customer success, and delivering shareholder value [16] - Investments in AI and a clean product architecture enable rapid product releases [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth and success in 2026, with expectations for revenue growth and product innovation [16] - The total addressable market remains unchanged, with a strong focus on B2B manufacturing and distribution [40][52] - Anticipated growth rates for HawkSearch are expected to reach 20% this year [50] Other Important Information - Cash at the end of Q1 2026 was $1.5 million, with total assets of $15.7 million [14][15] - The company has no significant debt or contingent payments remaining from previous transactions [14] Q&A Session Summary Question: Clarification on ARR figures - Management confirmed that the average ARR per new customer is $28,000, up from $25,000, and overall revenue per customer is now $33,000 [21][31] Question: Impact of increasing average package on market reach - Management stated that the total addressable market has not changed, and customers are now more willing to adopt AI add-ons [40][44] Question: Competitive landscape changes - Management noted that top competitors remain the same, but differentiation is achieved through analytics and a data lake for customer data [46][47] Question: Expectations for future growth rates - Management expects continued growth in ARR and HawkSearch, with a solid pipeline of new customers [50][52] Question: Marketing spend effectiveness - Management indicated that marketing dollars are being spent effectively, with plans to invest more in successful campaigns [58][61] Question: Stability of gross margin - Management expects gross margins to remain stable in the mid-60s range, with subscription margins around 70% [64][72]