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]

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 Q3 2026 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 [14] Business Line Data and Key Metrics Changes - The company is advancing its Hemopurifier platform while maintaining disciplined cost control, with ongoing enrollment in the Australian oncology trial [5] - The second cohort of the oncology trial has seen two patients treated with Hemopurifier, with a third patient expected to be treated by the end of February [6][7] 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 recruitment [8] - The trial is designed to examine the number of Hemopurifier treatments needed to decrease extracellular vesicle concentrations and improve immune response against tumor cells [9] Company Strategy and Development Direction - The company is focused on advancing the Hemopurifier platform and exploring its compatibility with a simplified blood treatment system, which could enhance clinical and commercial flexibility [5][10] - Aethlon Medical is also exploring the potential of the Hemopurifier in treating conditions beyond oncology, including Long COVID and other diseases associated with extracellular vesicles [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing progress in the Australian oncology trial and the potential for the Hemopurifier to be integrated into oncology units and infusion centers, reducing invasiveness for patients [22][24] - The company is committed to cost containment while advancing its research and development efforts, particularly in the context of Long COVID [26] Other Important Information - The scientific rationale and full design of the Australian oncology trial have been published in a peer-reviewed journal, indicating the company's commitment to transparency and scientific rigor [10] - The next earnings call for the fiscal fourth quarter is scheduled to coincide with the filing of the annual report in June 2026 [16] Q&A Session Summary Question: Clarification on Cohort 2 treatment duration - Management confirmed that participants in Cohort 2 will receive two Hemopurifier treatments, maintaining the same follow-up period as Cohort 1 [19] Question: Impact of SLAMB system on treatment administration - The SLAMB system is expected to simplify the administration of Hemopurifier treatments, making it less invasive for patients and easier for hospital staff [22][24] Question: Cost-effective approach in R&D - Management emphasized the importance of cost containment while advancing research, focusing on in-house work and limiting external lab involvement [26] Question: Timeline for Data Safety Monitoring Board's decision - Management anticipates a decision from the Data Safety Monitoring Board on whether to advance to the third cohort on the same day or the next business day after the meeting [34] Question: Need for Cohort 3 - Management believes it is essential to conduct Cohort 3 to fully assess the efficacy of three treatments, based on historical data suggesting that more treatments may yield better results [60] Question: Regulatory hurdles for SLAMB system integration - The SLAMB system is not yet approved, and the company will need to conduct safety tests and treatments before integration with the Hemopurifier [45]

Financial Data and Key Metrics Changes - Net income for Q2 2026 increased to $9.4 million, up from $7.1 million in the prior year, reflecting a year-over-year growth of 32.4% [5][17] - Adjusted EBITDA rose to $18.5 million, an increase of $2.4 million year-over-year, with an adjusted EBITDA margin improving to approximately 5% from 4.1% [5][17] - Gross margin expanded by 210 basis points to 12.8%, driven by a favorable product mix and operational discipline [5][16] Business Line Data and Key Metrics Changes - Physical movie revenue increased 33% year-over-year to $114 million, supported by strong demand for premium formats [9] - Collectibles revenue grew 31% year-over-year, reflecting momentum in premium and licensed offerings [11][12] - The gaming hardware segment experienced a decline, with a $24 million drop in revenue, primarily due to supply issues with Microsoft consoles [34][45] Market Data and Key Metrics Changes - The overall net revenue for Q2 2026 was $369 million, down from $394 million in the prior year, attributed to softness in lower-margin categories [16] - For the six months ended December 31, 2025, net revenue was $623 million, essentially flat compared to the prior year, indicating a shift towards higher value products [18][19] Company Strategy and Development Direction - The company is focused on building a business that generates sustainable profitability through higher quality revenue and disciplined growth [6][7] - Strategic partnerships with studios like Paramount and Amazon MGM are expected to enhance the premium physical media portfolio and improve revenue quality [10][26] - The introduction of NState Authentic aims to enhance the collectibles market through technology-enabled trust and authentication [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the margin profile and the ongoing shift towards premium and exclusive content [25][28] - The company is not providing formal guidance but remains optimistic about the long-term trajectory and profitability discipline [25][28] - There is a focus on scaling the Alliance Authentic initiative and expanding the collectibles portfolio [26][28] Other Important Information - The company ended the quarter with approximately $74 million in working capital, reflecting disciplined inventory and payable management [21] - A new $120 million senior secured revolving credit facility was established, reducing borrowing costs and extending maturity [22][23] Q&A Session Summary Question: Can you talk about your ability to sign additional exclusive deals with studios? - Management is in active conversations with various studios and believes that the recent partnerships position the company as a premier solution for licensing physical DVD products [32] Question: Can you discuss the impact of external forces on gaming hardware revenue? - The gaming hardware segment has been affected by supply issues, particularly with Microsoft, while Nintendo has performed well [34][45] Question: What are your thoughts on strategic M&A opportunities? - The company is constantly in discussions regarding M&A and is optimistic about finding the right opportunities that are financially accretive [37][38] Question: Can you provide an update on music sales trends? - Vinyl and CD sales remain strong, with over 16 million vinyl records and 13 million CDs sold in 2025, indicating continued interest in physical music formats [60][61] Question: What is the expected timeline for the rollout of NState Authentic? - The initial rollout is underway, with expectations for traction in the market as marketing efforts ramp up [53][69]

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% [15][16] - U.S. revenue reached $892 million in Q4 2025, up 11% from $803 million in Q4 2024 [15] - International revenue grew 18% to $368 million in Q4 2025, with organic growth at 15% [16] - Gross profit for Q4 was $799.8 million, representing 63.5% of revenue, an increase from 59.4% in Q4 2024 [17] - Operating income was $331.5 million, or 26.3% of revenue, compared to $209.5 million, or 18.8% of revenue, in Q4 2024 [18] - Net income for Q4 was $265.1 million, equating to $0.68 per share [18] - The company closed the quarter with approximately $2 billion in cash and cash equivalents, indicating strong financial flexibility [18] 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 [6][12] - The company is focusing on improving customer experience through new digital support systems and AI integration [7][8] - The early access launch of Dexcom Smart Basal aims to improve outcomes for Type 2 diabetes management [8] Market Data and Key Metrics Changes - The international business showed strength, particularly in Germany, the United Kingdom, and France, with France being one of the fastest-growing markets due to Type 2 access expansion [16] - The company anticipates that international market opportunities could surpass those in the U.S. over time [11] Company Strategy and Development Direction - The company aims to be the premier glucose sensing solution, focusing on sensor accuracy, reliability, and connectivity [6] - Strategic priorities include enhancing customer experience, expanding international market share, and driving growth through product innovation [10][11] - The company plans to introduce new products in 2026, including Stelo and a new CGM system for international markets [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in metabolic health management and the impact of upcoming Medicare coverage for Type 2 non-insulin users [24][26] - 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% [19][20] - Management highlighted the importance of maintaining gross margin improvements and operational efficiencies while investing in new facilities [20][47] Other Important Information - The company has surpassed $1 billion in free cash flow for the first time in 2025 [19] - An Investor Day is planned for May 2026 to provide further details on the company's outlook [13] Q&A Session Summary Question: Discussion on the company's glucose sensing journey and market potential - Management believes the company is in the early stages of addressing metabolic health issues, with significant growth opportunities in Type 2 coverage expected in the next 12-24 months [24][26] Question: Inquiry about CMS coverage for Type 2 non-insulin users - Management is optimistic about upcoming CMS coverage decisions and is preparing for potential impacts on market access [30][33] Question: Impact of the 15-day product rollout on margins and new markets - The 15-day product is expected to contribute to margins over time, with significant opportunities for international expansion [36][39] Question: Discussion on operating expenses and investments - Increased operating expenses are primarily due to investments in the new Ireland manufacturing facility, which will enhance future production capabilities [46][47] Question: Utilization rates among different user segments - Utilization rates remain stable across various user segments, with high engagement expected to drive further growth [51][52] Question: Revenue outlook and new patient dynamics for 2026 - Revenue growth will depend on patient retention, utilization, and pricing strategies, with a focus on maintaining a stable user base [56][60] Question: Stability of the U.S. sensor uptake trends - Management noted improvements in sensor deployment and stable user retention, contributing to positive sell-through trends [64][66] Question: Pricing dynamics related to Medicare coverage - Pricing strategies will be influenced by competitive bidding processes, with expectations for stable pricing amidst increased volume [72][74] Question: International market growth strategies - The company plans to deepen its presence in existing markets and expand into new regions, with a focus on generating evidence to support market access [80][82]

Financial Data and Key Metrics Changes - Revenues for Q4 2025 were $4.9 million, a significant decrease from $31 million in Q4 2024, primarily due to lower unit sales [13] - Gross profit for Q4 2025 was $1.9 million, or 38.8% of revenues, down from $7.1 million, or 54.2% in Q4 2024, driven by lower sales and higher servicing costs [14] - For the full year 2025, revenues were $27.5 million, compared to $41.8 million in 2024, reflecting a decrease in unit sales [15] - The net loss for 2025 was $7.7 million, or a loss of $0.47 per share, compared to a net income of $6.6 million, or $0.41 per diluted share in 2024 [18] Business Line Data and Key Metrics Changes - The company shipped 14 units in Q4 2025, with 8 in the U.S. and 6 internationally, but did not include sales to its largest customer [24] - The Fair Deal Agreement program saw substantial year-over-year utilization increases, with treatments up more than eightfold and the number of patients treated increasing by over 250% in 2025 [7] Market Data and Key Metrics Changes - International sales were strong in Q4 2025, with shipments to China and a growing demand in Asia, particularly in Taiwan and South Korea [8][28] - The company expects international markets to remain a significant part of its growth strategy, with Brazil and the Middle East also showing potential [29] Company Strategy and Development Direction - The introduction of new CPT codes for SRT and IG-SRT technologies is expected to enhance physician reimbursement and support broader adoption of non-invasive treatments [4] - The company aims to achieve full-year profitability in 2026, supported by a diversified customer base and expanding international opportunities [9] - A disciplined approach to scaling the sales organization is being implemented, with plans to hire additional sales representatives to enhance market education and lead conversions [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2026 with improved clarity and control over the business, emphasizing the positive impact of new reimbursement codes [20] - The company is focused on converting interest into system placements as the year progresses, with expectations for Q1 revenues to exceed Q4 levels [19] Other Important Information - The company ended 2025 with $22.1 million in cash and cash equivalents, with no outstanding debt, indicating a strong balance sheet [18] - Research and development expenses for 2025 increased to $7.8 million, reflecting higher costs related to billing and reimbursement efforts [17] Q&A Session Summary Question: Does the revenue growth guidance for Q1 assume no contribution from the largest customer? - Management confirmed that projections for 2026 exclude expectations from the largest customer, and any contribution from them would be considered upside [24] Question: What is the status of the TDI program and expected FDA approval? - Management indicated ongoing efforts with the FDA but could not provide a timeline for approval [26] Question: What is the demand outlook internationally for 2026? - Management highlighted strong demand in China and growth in Taiwan, with expectations for expansion in South Korea, Japan, and potential entry into Brazil and the Middle East [28][29] Question: How has the reaction to reimbursement affected system mix and financing options? - Management noted a shift towards outright purchases and leasing options due to guaranteed reimbursements, with a stronger focus on SRT products [38][40] Question: What is the outlook for service revenue? - Service revenue remains consistent at about 10% of total revenue, with no expected changes [48]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue was $16 million, a 4% increase year-over-year, while full-year revenue reached $56.7 million, reflecting a 10% growth [3][17] - Gross profit for Q4 was $13.8 million, an 8% increase, with gross margin rising to 86% from 83% a year ago [19] - Net loss for Q4 was $11.9 million, or $0.46 per share, compared to a net loss of $10.7 million, or $0.43 per share in Q4 2024 [21] Business Line Data and Key Metrics Changes - U.S. revenue was $14.9 million in Q4 2025, a 4% increase, with revenue units totaling 478, up from 460 in the prior year [17] - European revenue increased to $1.1 million, a 10% rise, with revenue units growing to 49 from 41 [18] Market Data and Key Metrics Changes - The addressable market for Barostim therapy is estimated at $10.5 billion, with only 1% penetration, indicating significant growth potential [5] - The initiation of the BENEFIT-HF trial could expand the addressable market to approximately $30 billion if successful [12] Company Strategy and Development Direction - The company focused on three strategic priorities: building a world-class sales organization, driving deep adoption in targeted centers, and reducing barriers to adoption [6] - Transition to Category I CPT codes is expected to improve patient access and reimbursement predictability, effective January 1, 2026 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sales team's ability to execute and drive growth, despite a natural ramp-up period for new sales representatives [6][15] - The company anticipates total revenue for 2026 to be between $63 million and $67 million, with a gross margin of 84% to 86% [23] Other Important Information - The company amended its debt facility to extend the maturity date to 2031 and increase access to additional capital [14][22] - A new Chief Human Resources Officer was appointed, indicating ongoing organizational development [16] Q&A Session Summary Question: On the BENEFIT-HF trial strategy and revenue generation - Management indicated that the trial will involve a mix of existing and new commercial sites, with expected revenue from approximately 1,600 to 1,700 devices sold during the trial [26][28] Question: Growth of active accounts in Q4 - Management noted that while there was a net addition of accounts, the focus remains on deepening existing relationships, with expectations of adding around three active territories quarterly in 2026 [30][31] Question: Impact of the Category I code on treatment barriers - Management reported positive early signs of improved prior authorization approvals and expects this trend to continue as the transition progresses [36][39] Question: Path to profitability and cash management - The company has sufficient cash reserves and access to additional capital, with a focus on driving sales productivity to achieve profitability [72][74]

Financial Data and Key Metrics Changes - In Q4 2025, Expedia Group reported an 11% increase in bookings and revenue, with EBITDA margin expansion of nearly 4 points [14][20] - Gross bookings reached $27 billion, while revenue was $3.5 billion, with foreign exchange contributing slightly over 1 point to bookings growth and about 2 points to revenue [16][20] - Adjusted EBITDA for Q4 was $848 million, with a margin of 24%, reflecting revenue growth and expense leverage [19] Business Line Data and Key Metrics Changes - B2C gross bookings grew 5% to $18.3 billion, while B2C revenue increased 4% [16] - B2B gross bookings surged 24% to $8.7 billion, with revenue also growing 24% to $1.3 billion [17] - B2C EBITDA margins improved to 31.5%, up approximately 6 points from the previous year, driven by marketing leverage [16] Market Data and Key Metrics Changes - Booked room nights increased by 9%, with high single-digit growth in the U.S. and low double-digit growth in EMEA and the rest of the world [4][15] - Consumer spending remained robust, with longer booking windows and lengths of stay compared to 2024 [4] - The B2B segment experienced double-digit growth across all regions, indicating strong market demand [8] Company Strategy and Development Direction - The company aims to enhance traveler value through improved product offerings, faster site performance, and personalized experiences using AI [5][10] - Investments are being made in new lines of business, including the acquisition of Tiqets to broaden offerings for partners and travelers [9] - The strategy includes driving operational efficiencies and margin expansion, with a focus on optimizing marketing spend and leveraging AI for better targeting [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and ability to execute, anticipating continued growth and margin expansion in 2026 [13][24] - The company is cautious about macroeconomic uncertainties but expects strong bookings momentum entering Q1 2026 [20][21] - Management highlighted the importance of maintaining a competitive edge through enhanced customer service and loyalty programs [84] Other Important Information - The company ended Q4 with $5.7 billion in unrestricted cash and short-term investments, maintaining a commitment to return capital to shareholders [20] - A quarterly dividend increase of 20% to $0.48 per share was announced [20] Q&A Session Summary Question: Enhancements in Travel Planning Process - Management emphasized the importance of personalized marketing and product features to capture travelers earlier in the planning process [26][27] Question: B2C Marketing Leverage - Management discussed achieving about 50 basis points of leverage in B2C marketing through improved efficiency and targeting [30][31] Question: Competitive Positioning of Consumer Brands - Management expressed confidence in the positioning of their brands, highlighting improvements in supply and marketing effectiveness [36][38] Question: Margin Trajectory Outlook - Management indicated confidence in future margin expansion driven by effective execution and growth in B2C and B2B segments [42][44] Question: Supply Growth Dynamics - Management confirmed that supply growth benefits both B2C and B2B segments, with ongoing efforts to onboard properties more efficiently [49][51] Question: Traffic Changes from Google AI Features - Management noted no material changes in traffic from Google but sees opportunities in AI search to better target travelers [55][56] Question: B2B Growth Drivers - Management highlighted strong double-digit growth in B2B, driven by deeper partner relationships and innovative product offerings [62][65] Question: Alternative Lodging Uptake - Management reported growth in alternative lodging on Brand Expedia, indicating ongoing efforts to enhance the user experience [78] Question: CapEx for 2026 - Management expects CapEx to remain roughly in line with previous years, indicating no significant changes [79]