Financial Data and Key Metrics Changes - The company reported third quarter revenue of $213 million, an increase of $40 million from the same period in 2024 [10] - Gross profit was $3.3 million, up $54.4 million from the same period in 2024, with a gross profit margin of 1.5%, compared to negative 29.5% in the prior year [10][4] - Selling, general, and administrative costs decreased by $2.9 million to $14.6 million compared to the same period in 2024 [11] - The company reported a net loss of $75.2 million or $1.39 per share, compared to a net loss of $54.7 million or $1.14 per share in the same period last year [13] - EBITDA was negative $3.5 million, an improvement from negative $58.7 million for the same period in 2024 [13] Business Line Data and Key Metrics Changes - The Civil segment had revenue of $99.5 million, up from $55.8 million in the same period in 2024, with a gross profit of $10.4 million and a gross margin of 10.5% [14] - The Transportation segment reported revenue of $113.9 million, a decrease of $3.6 million from the same period in 2024, with a gross loss of $7.2 million [15] - The Materials and Paving business line contributed $22.9 million to revenue, with a gross loss of $3 million [15] Market Data and Key Metrics Changes - The company added approximately $151 million in new awards and contract adjustments during the quarter, bringing the total backlog to approximately $2.26 billion [6] - The company expects to burn approximately 39% of the backlog over the next 12 months [16] Company Strategy and Development Direction - The company is focusing on finalizing remaining legacy projects and transitioning to high-quality new core backlog, expecting to de-risk its earnings profile [6] - The strategy includes targeting short-duration, high-margin projects in both public and private markets, with a strong emphasis on data center opportunities [7][8] - The company is positioned to benefit from significant public market opportunities driven by the Infrastructure Investment and Jobs Act (IIJA) [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resolution of legacy disputes and expects significant cash collections from these disputes [5][22] - The outlook for the market remains positive, with robust demand for infrastructure expected to continue for years [6] - The company anticipates improving profitability as it transitions fully into its core business by 2027 [41] Other Important Information - The company is exploring debt solutions to provide additional capacity and flexibility in accelerating work on the legacy backlog [16] - A one-time non-cash tax expense of $57.3 million was recorded due to a valuation allowance on net deferred tax assets [12] Q&A Session Summary Question: Inquiry about data centers and private projects - Management indicated that they are looking at data centers that align with their core market, with opportunities ranging from $15 million to $75 million [40] Question: Free cash flow outlook for Q4 - Management noted that while positive cash flow from operations was generated, a decrease may be expected in Q4 and Q1 of 2026, but overall positive cash flow is anticipated in 2026 [32] Question: Impact of Texas's Proposition Four on civil projects - Management expressed confidence in civil margins and highlighted the potential benefits from the $20 billion allocated for water projects in Texas [34] Question: Competitive advantage with tunnel boring machines - Management stated that they have a significant advantage with their own tunnel boring machines and a large fleet, positioning them well for upcoming tunnel opportunities [35] Question: Expectations for core business margins in 2027 - Management expects to improve profitability in 2027 as they focus on core work, following a reset year in 2025 [41]

Financial Data and Key Metrics Changes - For Q3 2025, the company generated distributable earnings of $0.31 per share, covering the dividend of $0.30 per share [5][13] - Net interest income for the quarter was $6.1 million, with GAAP net income at $4.05 million [13][14] - The company ended the quarter with total assets of $258.8 million and total shareholder equity of $184.6 million, resulting in a book value of $13.76 per share [14] Business Line Data and Key Metrics Changes - The portfolio had $367 million in commitments and $253 million in principal outstanding across 13 loans as of September 30, 2025 [14] - The weighted average loan-to-cost at closing was 56%, indicating conservative positioning [6] - Approximately 95% of the loans are floating rate, with an average SOFR floor of about 4% [6] Market Data and Key Metrics Changes - There has been a notable increase in financing requests, indicating a recovery in the real estate market [8][9] - The bid-ask spread between buyers and sellers is narrowing, which is increasing transaction volume [9] - Most new financing activity is concentrated in the bridge lending space, particularly in multifamily and industrial properties [10] Company Strategy and Development Direction - The company focuses on originating transitional loans primarily in the southern United States, aiming for attractive risk-adjusted returns [5][6] - The long-term goal is to achieve an investment-grade rating within the next three to five years [6] - The company is expanding its real estate pipeline, with two signed non-binding term sheets totaling approximately $170 million [11] Management's Comments on Operating Environment and Future Outlook - Management noted a renewed sense of interest rate stability, encouraging more sponsors to engage in capital planning [8] - The company remains confident in its ability to capitalize on attractive opportunities in the current market environment [12] - The underlying performance of the portfolio is progressing as expected, with no significant issues reported [30][31] Other Important Information - The company has a CESL reserve of approximately $400,000, or 17 basis points for loans at carrying value [14] - The board declared a dividend of $0.30 per share, paid on October 15, 2025 [13] Q&A Session Summary Question: What new geographies within the southern U.S. are being seen in the pipeline? - The company is focusing on Florida, Texas, North Carolina, Georgia, and Tennessee for new deals [17][18] Question: Are there any geographies that stand out as the most attractive for investment? - Texas and Florida continue to present interesting opportunities, with the Carolinas and Tennessee also being areas of focus [18][19] Question: How is the debt side of the business strategy progressing? - The company is not pursuing a repo line and is focused on obtaining an investment-grade rating while expanding bank lines [24][25] Question: How is the portfolio performing and what trends are being observed? - The portfolio is performing as expected, with steady progress in construction and sales [30][31]

Financial Data and Key Metrics Changes - Third quarter gold sales nearly doubled over the prior year period to approximately 9,400 ounces, with total revenue from gold sales increasing to approximately $32 million for the quarter, driven by higher ounces sold and a higher average realized gold price of $3,412 per ounce [17][18] - The company reported a net loss of approximately $42 million or $0.05 per share, similar to the prior year period, reflecting the development stage and strategic investment [18] - Cash used in operating activities decreased to approximately $15 million compared to about $24 million in the prior year due to higher gross profit and working capital [18][19] Business Line Data and Key Metrics Changes - At Granite Creek Underground, approximately 15,000 tons of oxide mineralized material were mined at a grade of about 9.8 grams per ton, and approximately 20,000 tons of sulfide material at a grade of about 10.7 grams per ton were mined [8][9] - The stockpile of sulfide material processed by a third-party autoclave was normalized by quarter-end, and gold sold totaled 7,400 ounces for the quarter [8][9] Market Data and Key Metrics Changes - The company continues to recover gold from existing leach pads at Lone Tree and Ruby Hill, with approximately 2,000 ounces recovered and sold in the third quarter [9] Company Strategy and Development Direction - The company aims to create a Nevada-focused mid-tier gold producer, with significant progress made towards key milestones in its development plan [2][3] - A recapitalization plan is underway, with expectations to secure a financing package by mid-2026 to support various phases of the development plan [5][19] - The company is focused on long-term value creation and has initiated a sustainability strategy to attract and retain talent [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing the development plan and unlocking the value of the resource base as the company moves into 2026 and 2027 [22][39] - The company believes it is trading at a deep discount compared to comparable developers, indicating potential for market recognition of its value [23] Other Important Information - The Lone Tree plant refurbishment study is substantially complete, with a construction decision anticipated in the second quarter of 2026 [16] - The company is evaluating ways to accelerate value creation, including a potential pre-feasibility study on Mineral Point [5] Q&A Session Summary Question: Where is the company currently mining and when will it start mining from longer levels in the South Pacific Zone? - The company is mostly mining in the OG Zone and has started the upper zone of the South Pacific. It expects to be around 60% in the South Pacific Zone next year [25][26] Question: What are the steps being taken to process oxide through the Lone Tree plant? - The autoclave can be bypassed with oxide ore, and the company is evaluating the potential for feeding that through as commissioning approaches [28] Question: Regarding the recapitalization plan, is the company reconsidering the disposition of the non-core FAD asset? - The company is evaluating all options for recapitalization, including the potential sale of the FAD asset, but will only proceed if a fair value can be obtained [32][33] Question: What is the expected CapEx for the refurbishment of the Lone Tree autoclave and Archimedes' development in 2026? - The refurbishment is estimated at $400 million, with approximately $175 million expected to be spent in 2026, and Archimedes' development is expected to be about $40 million [34][35]

Financial Data and Key Metrics Changes - For Q3 2025, revenue totaled $48 million, representing a 30% increase from Q3 2024. Gross profit rose 11% [4] - The company reported a net loss of $1.8 million, or $0.54 per share, compared to a net loss of $800,000, or $0.28 per diluted share in the same quarter last year [4] - On a non-GAAP basis, adjusted net income per share was $0.02 compared to an adjusted net loss of $0.13 per share in the prior year quarter [4] - Pro forma adjusted earnings per share were positive $0.19 versus negative $0.54 in the third quarter a year ago [5] - Adjusted EBITDA increased to $1.3 million from $800,000 in the third quarter of last year, reflecting improved operating leverage following the merger [5] Business Line Data and Key Metrics Changes - Business services revenue was $37 million, slightly up from $36.9 million the same period last year, with gross profit remaining flat at $18.6 million [8] - Building solutions revenue totaled $9.6 million, with a gross profit of $1.7 million and adjusted EBITDA of $600,000 [11] - On a pro forma basis, building solutions revenue was $21.4 million, up from $13.7 million in Q3 2024, with pro forma gross profit rising to $5.3 million [11] - Energy services revenue was $1.3 million, with gross profit of $300,000 and adjusted EBITDA of $100,000 [13] - Pro forma energy services revenue increased to $3.7 million, gross profit reached $1.5 million, and pro forma adjusted EBITDA rose to $1 million [13] Market Data and Key Metrics Changes - The broader acquisition market has contracted in 2025 compared to 2024, but the business services segment maintained profitability [6] - The building solutions segment capitalized on the rebound in commercial construction demand while managing through softness in residential markets [11] - The energy services segment achieved strong results despite a broader slowdown across the energy sector [13] Company Strategy and Development Direction - The company is operating as a diversified holding company with four divisions: building solutions, business services, energy services, and investments [3] - The strategy emphasizes expanding geographical footprint and broadening service offerings to existing and prospective clients [9] - The company is focused on operational excellence and prudent capital allocation to maximize shareholder returns [16] - A new $3 million share repurchase program has been authorized, reflecting confidence in long-term growth prospects [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the integration of the recent merger and the realization of efficiencies across shared services [14] - The company aims to achieve $2 million in synergies from the merger, with expectations to reach this run rate within six months [52] - Management noted that the current environment is characterized by low attrition rates at Fortune 500 companies, indicating a potential recovery in the market [55] Other Important Information - The company repurchased about 8% of its shares outstanding during the third quarter, demonstrating confidence in its intrinsic value [16] - The building solutions segment ended the quarter with a $20 million backlog of committed orders, indicating a healthy pipeline [12] Q&A Session Summary Question: Record performance in building solutions - Management acknowledged strong throughput from projects that were previously delayed, contributing to record performance [19] Question: Seasonal trends in revenue - Management indicated that the fourth quarter's performance is dependent on weather patterns and site readiness [20] Question: Business services revenue differences by region - Management explained that the adjusted net revenue as a percentage of sales is higher in the Americas due to significant growth and the nature of the RPO business [26] Question: Update on European market performance - Management noted a downturn in the European market but expressed optimism about future growth due to a new management team [28][31] Question: Expected synergies from the merger - Management confirmed the target of $2 million in synergies, expected to be realized within six months [52] Question: Future acquisitions and growth strategy - Management indicated a focus on adding size to existing businesses and exploring bolt-on acquisitions in existing geographies [35]

Financial Data and Key Metrics Changes - The third quarter 2025 cash burn from operating and investing activities was $2.7 million, an increase from $2.4 million in Q3 2024 and $2.5 million in Q2 2025 [18] - Operating expenses were $3 million in Q3 2025 compared to $2.9 million in Q3 2024, attributed to higher wafer fabrication costs [19] - Net loss in Q3 2025 was $2.9 million, compared to $2.7 million in Q3 2024 [21] Business Line Data and Key Metrics Changes - A purchase order was secured from Stellantis for custom development and packaged B-TRAN devices targeting multiple electric vehicle applications [9] - The power rating of the discrete B-TRAN product was increased by 50%, leading to greater interest from customers [11][15] - The first DesignWin customer is expected to generate several hundred thousand dollars in revenue in its first year, potentially exceeding $1 million in the second year [14] Market Data and Key Metrics Changes - The company is engaged in discussions with a sixth global automaker evaluating B-TRAN for next-generation high-voltage EV applications [10] - Interest in B-TRAN is growing across Asia, which is the largest market for power electronics [12] - Third-party automotive qualification testing of B-TRAN devices is underway, with positive early test results [12] Company Strategy and Development Direction - The company aims to commercialize its B-TRAN technology in high-growth power applications across data centers, industrial, and automotive markets [4] - The strategy includes leveraging extensive commercial experience to drive revenue growth in target markets [5] - The company is focused on executing with rigor and discipline to establish credibility and maintain investor confidence [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to drive long-term value creation and highlighted the importance of understanding customer needs [8] - The CEO emphasized the trend towards higher power architectures in EVs and the need for improved power efficiency and density [25][31] - The company anticipates a continued trend towards higher power levels across multiple applications, which aligns with B-TRAN technology advantages [31] Other Important Information - The company has 97 issued B-TRAN patents, with 73 pending, and is focused on safeguarding its intellectual property [17] - Cash and cash equivalents totaled $8.4 million at September 30, 2025, with no debt [18] - The company expects fourth quarter 2025 cash burn to be approximately $2.5-$2.7 million, with a full year 2025 cash burn of approximately $10 million [18] Q&A Session Summary Question: What is driving the automakers to look for better solutions? - The shift to higher power architectures, particularly the adoption of 800-volt battery systems, is driving automakers to evaluate new technologies for improved power efficiency and density [25] Question: Is the product currently available for sale? - The product is not currently for sale; the customer is finalizing their product design [28] Question: How do you see the markets evolving? - The markets are expected to trend towards higher power applications, with a focus on improved power efficiency and density [30][31] Question: What is Ideal Power doing to expand the sales pipeline? - The company has added direct sales in Asia and is conducting meetings with current and prospective customers [33] Question: How does B-TRAN compare to competitors? - B-TRAN has advantages of ultra-low conduction losses and bidirectionality, translating to more efficient and compact products at lower costs compared to silicon and silicon carbide solutions [34]

Financial Data and Key Metrics Changes - The company reported distributable earnings of $0.44 per share, adjusted net income of $0.22 per share, and adjusted EBITDA of $20.5 million for Q4 2025, all in line with expectations [4][17] - Recurring service revenues were approximately $45.5 million, a sequential increase of about $1.5 million, driven by increases in enterprise values at DHC, ILPT, and SVC [17] - The company expects recurring service revenues to decrease to approximately $42.5 million in the next quarter due to lost fee revenue from the sale of a life science business [17] Business Line Data and Key Metrics Changes - DHC's consolidated shop NOI increased 8% year over year to $29.6 million, with a 210 basis point increase in occupancy to 81.5% and a 5.3% increase in average monthly rates [5] - SVC completed the sale of 40 hotels for over $292 million and is on pace to sell a total of 121 hotels in 2025 for $959 million [6] - Seven Hills delivered solid performance with a fully performing $642 million loan portfolio and announced a rights offering to raise approximately $65 million in new equity [7][8] Market Data and Key Metrics Changes - The company arranged almost 1.4 million square feet of leases in the past quarter, with rental rates approximately 14% higher than previous rents for the same space [11] - The company believes that 2026 will be a better year for institutional investments in real estate, as recent conversations with potential partners have reinforced commitments to the U.S. and many sectors [12] Company Strategy and Development Direction - The company is focused on helping SVC drive EBITDA growth across its hotel portfolio while managing ongoing revenue displacement from renovation activity [6] - The company is pursuing new growth initiatives in the private capital space to drive future revenue and earnings growth [10] - The company is actively sourcing investment opportunities in the retail sector, aiming to build a portfolio of value-add multi-tenant retail properties [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic initiatives undertaken despite a continued unsettled economic environment [4] - The company anticipates a decline in adjusted EBITDA and distributable earnings per share in the next quarter primarily due to the sale of a life science business [20] - Management remains committed to supporting OPI during its restructuring process and believes the restructuring support agreement will strengthen OPI's financial position [9] Other Important Information - The company ended the quarter with $162 million of total liquidity, including $62 million in cash and $100 million of capacity on its undrawn revolving credit facility [20] - The company has agreed to backstop the rights offering for Seven Hills, demonstrating confidence in its business prospects [8] Q&A Session Summary Question: Does OPI's fee go up quarter to quarter? - The fee is effectively flat, with a fixed fee of $14 million per year for the first two years post-bankruptcy [26][27] Question: Where does shopping centers fit in the private capital strategy? - The company has core competency in retail and is looking to build a track record in investing in neighborhood and grocery-anchored shopping centers [29][30] Question: Any updates on the rights offering? - It is too early to tell how many shareholders will exercise their rights, but there is interest from new shareholders in buying rights from those who do not want to exercise [52] Question: What is the expected impact of the loss of managing AlerisLife? - A $1 million decrease in fee revenue is expected in the coming quarter, with an additional $400,000 reduction in fiscal Q2 [38] Question: How flexible is G&A spending if OPI's portfolio changes? - The company believes it could significantly reduce costs if it were not managing a large office portfolio, as office management is the most intensive [46]

Financial Data and Key Metrics Changes - Net revenue for Q3 2025 reached approximately $47 million, a 6% increase year over year, while adjusted EBITDA was $27.5 million, and net income totaled $12.8 million, demonstrating strong profitability [3][8] - For the first nine months of 2025, net revenue amounted to $108.7 million, with adjusted EBITDA of $52.8 million and net income of $8.8 million [3][8] - The cash position strengthened to approximately $37 million at the end of the quarter, equivalent to $1.8 million per vessel, reflecting effective cash management [9][10] Business Line Data and Key Metrics Changes - The company continues to focus on its Capesize investment strategy, which has shown superior earnings capacity compared to peers [3][4] - The fleet consists of 20 large Capesize vessels, with a loan-to-value ratio around 45%, positioning the company well for the Capesize cycle [4][10] Market Data and Key Metrics Changes - The Capesize market showed sustained strength in Q3, with average rates of about $24,600 per day, driven by a 2% increase in ton-mile demand against only 1.3% growth in available tonnage [13][15] - Iron ore exports from Australia and Brazil have recovered strongly, contributing to increased ton-mile demand [13][15] Company Strategy and Development Direction - The company is executing a disciplined fleet renewal strategy, including a newbuilding order for a 181,000 deadweight Capesize vessel, reflecting a focus on efficiency and modernization [4][5] - The strategy is anchored on three priorities: capital returns, fleet renewal and growth, and financial health, ensuring flexibility throughout market cycles [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in demand for iron ore, coal, and bauxite, citing upcoming projects like Simandou as key growth drivers [22][23] - The company remains optimistic about the Capesize market, anticipating a supply squeeze due to an aging fleet and low order book [22][23] Other Important Information - A cash dividend of $0.13 per share was declared for the quarter, reaffirming the company's commitment to shareholder returns [4][10] - Total debt stood at approximately $292 million, with a loan-to-fleet value ratio below 45%, indicating a conservatively capitalized profile [10][11] Q&A Session Summary Question: Future fleet growth strategy - The company is exploring opportunities for both modern second-hand ships and new builds, emphasizing the importance of timely delivery and quality [20][21] Question: Impact of China's steel production on demand - Management remains optimistic about demand for iron ore and coal, citing upcoming projects that will drive long-haul demand [22][23] Question: New build contract payment structure - The payment structure for the new build includes 45% to be paid over the next 12 months, with the remaining 55% due at delivery [27][28] Question: Pricing power in the market - The company has been able to secure premiums over the BCI through strategic conversions and maintaining flexibility in contract renewals [28][31] Question: Decision to pursue new builds over second-hand vessels - The decision was influenced by rising second-hand prices, making new builds more attractive [35][36] Question: Cost of debt and interest rates - The average cost of debt is estimated to be below 6%, with recent financings featuring competitive margins [38][39]

Financial Data and Key Metrics Changes - Net earnings for Q3 2025 increased by over $700,000 to approximately $4.3 million compared to roughly $3.6 million in Q2 2025 [6][7] - Net interest income rose by about $800,000 quarter over quarter, from just over $10.2 million to just over $11 million [7] - Pre-tax, pre-provision income reached approximately $17.35 million year to date, representing an annualized run rate of about $23.1 million [8][10] - Core return on average equity (ROE) was approximately 22.6% for the quarter, one of the highest levels among community banks nationwide [8] Business Line Data and Key Metrics Changes - Gross loans ended the quarter at $813.7 million, up from $784.6 million last quarter, representing a strong acceleration of loan growth [14] - Total deposits grew to $959.5 million, with $80.6 million in new deposits during Q3 2025 [15][18] - Non-interest income increased nearly $1.5 million year over year, driven by service charges and fees [14][16] Market Data and Key Metrics Changes - Total assets grew by $83.9 million to $1.08 billion as of September 30, 2025 [17][18] - The efficiency ratio remained highly competitive at 50.7%, well below the peer average of 68.02% [19] Company Strategy and Development Direction - The company aims to reinforce its position as one of the most dynamic and rapidly growing community banks in South Florida while maintaining a relationship-driven culture [20][21] - The focus remains on utilizing strong capital and a dedicated team to support growth and expansion [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong loan growth and profitability, emphasizing the importance of community relationships [20][39] - The company is actively searching for mergers and acquisitions to further enhance growth [36] Other Important Information - The company celebrated its 25th anniversary, highlighting its growth from a single branch to a $1.1 billion institution [3][6] - The allowance for credit losses to loans ratio stands at 1.23%, above the national peer average of 1.17% [17] Q&A Session Summary Question: What drove the expansion in Q3 NIM, and how does year-to-date performance compare with margin levels going forward? - The expansion in NIM was driven by older loans running off at lower interest rates and newer loans being issued at higher rates [26] Question: What is driving the deposit growth, and how is the deposit mix evolving? - The growth is attributed to a loyal customer base, with a historical mix of one-third non-interest-bearing deposits [27][28] Question: Which loan segments are driving growth, and how do you feel about overall credit risk? - The majority of growth is in commercial real estate, with strong asset quality maintained [30][31] Question: How does management evaluate capital adequacy relative to regulatory requirements and internal targets? - The company has a robust capital structure, well above regulatory requirements, and is actively seeking growth opportunities [34][36] Question: How is the bank positioning itself competitively amid regional CRE dynamics and deposit competition? - The bank differentiates itself through strong customer relationships and service quality rather than competing solely on rates [38][39] Question: Can the bank attract New York City depositors given recent events? - The bank's customer base is not limited to South Florida, and there are opportunities to expand beyond current markets [42][44]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $6.2 million, down from $6.9 million in Q3 2024, reflecting a decrease due to revenue mix and timing of contract launches [13][16] - Gross profit increased to $3.8 million, with gross margins expanding to 60.8%, up from 45.6% a year ago [14] - Operating income surged to $640,000, up from around $30,000 in Q3 2024, with operating margins increasing to 10.3% [15] - EBITDA doubled to $2.2 million from $1.1 million in Q3 2024, reflecting EBITDA margins of 34.6% [15] - Net income reached $700,000, a turnaround from a net loss of $400,000 in the prior year [15] - Non-GAAP net income surged to $1.9 million, up from $350,000 last year [15] Business Line Data and Key Metrics Changes - The company secured over 30 new electronic monitoring contracts in the US since mid-2024, including entry into 12 new states [4][5] - The US presence was reinforced by a five-year reentry services contract valued at up to $2.5 million through its subsidiary, LCA [6] - The company expanded its international presence with a $7 million electronic monitoring project in Germany, marking a strategic foothold in Europe [7][8] Market Data and Key Metrics Changes - The electronic monitoring market is projected to reach $2.3 billion by 2028, with approximately 95% of that opportunity concentrated in the US and Europe [12] - The US market is estimated to be more than six times the size of the European market, making it a particularly attractive driver for long-term growth [12] Company Strategy and Development Direction - The company aims to address challenges in modern justice systems, including high recidivism rates and prison overcrowding, by providing scalable alternatives to incarceration [11] - The company continues to evaluate strategic acquisition opportunities in the US market to enhance market penetration and operational synergies [10] - The operational advantage in the US includes a cloud-based centralized platform, enabling faster and more cost-effective program launches [10][40] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of continuous innovation and investment in R&D, with over $45 million invested in electronic monitoring solutions [11][12] - The company expects to see more consistency in revenues as the US market matures and recurring revenue becomes a larger portion of total revenues [32][46] - Management noted that the current margins reflect a favorable mix of projects and contracts, with expectations for long-term margin resilience and expansion [19] Other Important Information - The company reduced its net debt by nearly $25 million over the past two years through strategic debt-to-equity exchanges [17] - Working capital stood at $41.8 million as of September 30, 2025, up from $26.1 million a year ago [18] - Book value of equity tripled to $40.8 million, up from $13.3 million a year ago [18] Q&A Session Summary Question: Market opportunity in Germany - The company sees potential for expansion in Germany following a recent $7 million project win, with expectations for growth in scale and capabilities [24] Question: Repeatable opportunities with service providers in the US - The company has signed 14 service providers this year, with many replacing existing technologies with SuperCom's advanced solutions [25][26] Question: Debt position decline in Q3 - The company confirmed ongoing strategic debt-to-equity swaps to reduce debt balance [27] Question: Revenue breakdown by geography - The company noted that revenue volatility is influenced by the mix of projects in different stages, with the US market showing strong growth potential [30][31] Question: Contract lengths and renewal rates - US contracts typically span five to ten years, with a high likelihood of renewal once agencies are satisfied with the technology [33][34] Question: Accounts receivable buildup - The company clarified that the increase in accounts receivable is due to the timing of revenue recognition in long-term projects, not collection issues [49][50] Question: Buyout rumors - The company acknowledged interest from various firms but emphasized that any decision will prioritize shareholder value [54]

Financial Data and Key Metrics Changes - The company reported third quarter revenue of $213 million, an increase of $40 million from the same period in 2024 [5][13] - Gross profit was $3.3 million, up $54.4 million from the same period in 2024, with a gross profit margin of 1.5%, compared to negative 29.5% in the prior year [6][13] - Selling, general, and administrative costs decreased to $14.6 million, down $2.9 million compared to the same period in 2024 [14] - The company reported a net loss of $75.2 million or $1.39 per share, compared to a net loss of $54.7 million or $1.14 per share in the same period last year [15] Business Line Data and Key Metrics Changes - The Civil segment had revenue of $99.5 million, compared to $55.8 million in the same period in 2024, with a gross profit of $10.4 million and a gross margin of 10.5% [16][17] - The Transportation segment reported revenue of $113.9 million, a decrease of $3.6 million from the same period in 2024, with a gross loss of $7.2 million [18] - The Materials and Paving business line contributed $22.9 million to revenue, with a gross loss of $3 million [18] Market Data and Key Metrics Changes - The company added approximately $151 million in new awards and contract adjustments during the quarter, bringing the total backlog to approximately $2.26 billion [7][19] - The company expects to burn approximately 39% of the backlog over the next 12 months [19] Company Strategy and Development Direction - The company is focusing on finalizing remaining legacy projects and transitioning to high-quality new core backlog, expecting to de-risk its earnings profile [7][11] - The strategy includes targeting short-duration, high-margin projects in both public and private markets, with strong demand for large-scale data centers [9][10] - The company is positioned to benefit from significant opportunities under the Infrastructure Investment and Jobs Act (IIJA) and recent funding commitments in Texas [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing demand for infrastructure projects and the potential for strong cash flow in 2026 [8][38] - The company anticipates that legacy projects will have less impact on overall results in 2026 as they continue to wind down these projects [19] - Management maintains confidence in the long-term outlook and future direction of the business, expecting to improve profitability in the coming years [12][47] Other Important Information - The company is exploring debt solutions to provide additional capacity and flexibility in accelerating work on the legacy backlog [20] Q&A Session Summary Question: Inquiry about data centers and private market opportunities - Management indicated that they are looking at data centers that align with their core market, with strong opportunities in both public and private sectors [26][27] Question: Clarification on legacy claims and their resolution - Management expressed optimism about settling more legacy claims in the next 12 months, noting progress on smaller disputes [28][29] Question: Expectations for project delays and Q4 performance - Management expects Q4 to be similar to Q3, with a slight uptick anticipated [30][31] Question: Free cash flow outlook for Q4 - Management indicated positive cash flow from operations year-to-date, with expectations for some decrease in Q4 but overall positive cash flow in 2026 [37][38] Question: Size and runway of quick-turn projects in the Civil segment - Management highlighted strong civil margins and the positive impact of Texas's Proposition 4 on future projects [40] Question: Competitive advantage with tunnel boring machines - Management noted a significant advantage in having a large fleet of tunnel boring machines, positioning them well for upcoming opportunities [41] Question: Typical project sizes for data centers - Management indicated they are looking at data center projects ranging from $15-$20 million to $50-$75 million [46] Question: Future margin expectations post-legacy work - Management expects to improve profitability as they transition fully into core markets by 2027 [47]