Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached approximately $10.8 million, a significant increase of over 10 times year-over-year from $0.9 million in Q3 2024 [11][22] - Net income for Q3 2025 was approximately $104.3 million, a substantial increase compared to a net loss of $0.9 million in the same quarter last year, primarily driven by unrealized gains on Ethereum holdings [23] - Cash on hand as of September 30, 2025, was $11.1 million, up from $1.4 million at the end of 2024 [23] Business Line Data and Key Metrics Changes - The affiliate marketing segment generated revenue of approximately $570,000 in Q3 2025, down from $882,000 in Q3 2024, indicating a reduced emphasis on this area as resources shifted towards the ETH treasury strategy [20] - The company staked nearly 100% of its ETH since the inception of its treasury strategy, contrasting with many peers and ETH ETFs [14] Market Data and Key Metrics Changes - As of September 30, 2025, the company held 580,841 ETH with a net fair value of $2.4 billion, and 236,906 LsETH (liquid staked ETH) valued at $622.7 million [21] - Combined ETH holdings increased to 637,752 ETH and 223,499 LsETH as of November 9, 2025 [22] Company Strategy and Development Direction - The company is focused on maximizing value creation through strategic partnerships and identifying the best ETH deployment opportunities, leveraging its relationship with ConsenSys [14][15] - The long-term vision includes Ethereum becoming the settlement layer for trillions of dollars in tokenized assets, with a focus on increasing ETH per share for investors [10][12] Management's Comments on Operating Environment and Future Outlook - Management highlighted a significant shift in institutional adoption of digital assets, supported by regulatory clarity from the U.S. government [12] - The company is well-positioned to capitalize on the ongoing institutional adoption supercycle within the Ethereum ecosystem [19] Other Important Information - The company announced a partnership with Superstate to issue its stock natively on Ethereum, aiming to enhance accessibility and utility for a digitally native investor base [16] - The company raised $76.5 million through a registered direct offering, reflecting strong institutional confidence in its strategy [18] Q&A Session Summary Question: Can you discuss the attributes driving demand for Ethereum and the pipeline for partnerships? - Management noted that financial institutions recognize digital assets as crucial technology, with Ethereum executing its scaling roadmap effectively [27][28] Question: How does the company view the percentage of ETH that should be staked versus used for other earnings? - The company emphasized a focus on risk-adjusted yield while staking nearly 100% of its ETH, without providing specific yield targets [31][32] Question: What initiatives are being considered besides share buybacks in light of the current NAV multiple? - Management indicated a focus on increasing ETH per share growth and capital efficiency, with various strategies available depending on market conditions [50][51] Question: How does Ethereum maintain its leading position against competitors like Solana? - Management highlighted Ethereum's significant stablecoin activity and tokenized asset dominance, asserting confidence in its institutional activity [56][57] Question: What is the expected impact of upcoming Ethereum upgrades? - Management expressed optimism about the upgrades enhancing scalability and transaction throughput, positioning Ethereum favorably against competitors [64][65]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $732 million, a 6% increase year-over-year, at the high end of guidance [15][21] - Cloud revenue reached $563 million, up 13% year-over-year, representing 77% of total revenue [15][21] - Adjusted earnings per share for Q3 were $3.18, a 10% increase compared to the previous year [21] - Cash flow from operations was $191 million, up 20% year-over-year, indicating strong operational execution [22] Business Line Data and Key Metrics Changes - Customer engagement revenue, which accounted for 84% of total revenue, was $613 million, increasing 6% year-over-year [20] - Financial crime and compliance revenue, representing 16% of total revenue, totaled $119 million, up 7% year-over-year [20] - Annual recurring revenue (ARR) from AI and self-service offerings accelerated to 49%, driven by organic momentum and the acquisition of NICE Cognigy [16][8] Market Data and Key Metrics Changes - The Americas region contributed 84% of revenue, increasing 5% year-over-year, with double-digit cloud revenue growth [17] - EMEA revenue increased 7% year-over-year, while APAC revenue grew by 19% year-over-year, contributing to an 11% increase in international revenue [18] Company Strategy and Development Direction - The company is focused on an AI-first strategy, with significant momentum in cloud and AI bookings, and international expansion [7][13] - The acquisition of NICE Cognigy is expected to enhance AI and self-service growth, with a strong emphasis on integrating their solutions into the existing platform [15][24] - The company aims to lead the AI revolution in customer experience, leveraging its CX One platform and NICE Cognigy solutions [13][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for AI solutions, highlighting a vibrant market for customer experience transformation [8][11] - The company anticipates continued growth in cloud revenue and a positive trajectory for net revenue retention (NRR) [16][22] - Management expects to provide more detailed financial outlooks during the upcoming Capital Markets Day [23][97] Other Important Information - The company ended the quarter debt-free with total cash and short-term investments of $456 million, showcasing financial strength [22] - The updated guidance for total revenue for the full year 2025 is now expected to be in the range of $2,932 million to $2,946 million, reflecting a year-over-year increase of 7% at the midpoint [24] Q&A Session Summary Question: What is the expectation of Q4 revenue contribution from Cognigy? - Management expects Cognigy to contribute approximately 150 basis points to cloud revenue growth in Q4, following a 50 basis point contribution in Q3 [28] Question: How is Cognigy positioned in terms of go-to-market strategy? - Cognigy will actively pursue the CX market, regardless of the underlying CCAS platform, leveraging NICE's support to enhance its market presence [29] Question: What are the competitive dynamics in the market with new entrants? - Management views new entrants as validation of market potential and remains confident in their competitive positioning due to the acquisition of Cognigy [37] Question: How is the partnership with RingCentral impacting pipeline velocity? - The renewed partnership is expected to drive growth, with identified leads and collaboration between the two organizations [42] Question: What is the outlook for the Actimize business? - The Actimize business remains strong, with high demand and retention rates, benefiting from the regulatory environment around compliance and financial crime [91]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $6 million for the third quarter, which includes a non-cash loss of $4.4 million due to changes in the fair value of equity investments [23][24] - Non-GAAP loss for the quarter was $446,000, primarily reflecting incremental contractor development costs for the Veris implantable device [24][25] - Cash burn rate for the third quarter was $900,000, which included approximately $500,000 in outside contractor development costs for Veris [20][24] Business Line Data and Key Metrics Changes - Lucid's revenue for the quarter was $1.2 million, with test volume exceeding 2,800, consistent with the target range of 2,500-3,000 tests [10][11] - Veris launched the commercial phase of its strategic partnership with OSU, targeting 1,000 patients in the first year for enrollment in a registry [12][14] Market Data and Key Metrics Changes - The Medicare contractor meeting in September was successful, with experts endorsing Medicare coverage for EsoGuard, marking a significant milestone for Lucid [10][11] - PAVmed remains the largest shareholder of Lucid, owning approximately 23% of the common shares outstanding, although it no longer has voting control [21] Company Strategy and Development Direction - The company aims to stabilize its corporate structure and balance sheet, with plans to operate as a diversified commercial life sciences company with multiple independently financed subsidiaries [5][6] - PAVmed is pursuing additional technologies, including a partnership with Duke University for an endoscopic imaging technology for esophageal precancer [8][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning to capitalize on Lucid's market opportunities and the potential for Medicare coverage [9][10] - The company is focused on expanding its commercial offerings and enhancing its value proposition through clinical support services and AI-based clinical decision tools [17][43] Other Important Information - The company has restructured its debt, exchanging about 80% of its outstanding debt for new Series C preferred equity [19] - The development of the Veris implantable device is progressing well, with a clear regulatory pathway established for FDA submission [34][38] Q&A Session Summary Question: Status of the implantable monitor development - Management confirmed that the development work has relaunched with a new manufacturing partner and that the clinical requirements for FDA submission are modest [33][34] Question: Timing for commercialization conversations with other cancer centers - Management indicated that they plan to start expanding commercial activities to other centers in the first quarter after gaining experience with OSU [40][41] Question: Exclusivity and timing of the endoscopic imaging technology agreement - Management stated that a definitive license agreement is expected soon, and the technology will be developed within a separate subsidiary of PAVmed [45][46]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 was $137 million, down 2.1% compared to Q3 2024, reflecting ongoing macro-driven capital equipment spending constraints [13] - GAAP gross margin was 41% for the quarter, down from 44.8% in the same period last year, while non-GAAP gross margin was 45.3%, down from 49.6% [14] - GAAP net loss for the quarter was $55.6 million, or $0.65 per diluted share, compared to a net loss of $26.6 million, or $0.37 per diluted share in the same period last year [16] - Non-GAAP net income for the quarter was $1.5 million, or $0.02 per diluted share, compared to a net income of $0.4 million, or $0.01 per diluted share in the same period last year [16] - Adjusted EBITDA was $5 million for the quarter, compared to $5.1 million in the same period last year [17] Business Line Data and Key Metrics Changes - Product revenue in Q3 was $94.1 million, flat compared to the same period last year, while service revenue was $42.9 million, down from $45.9 million [13] - Within product revenue, system revenue was $32.1 million, up from $31.7 million in the same period last year, and consumables revenue was $62 million, compared to $62.4 million last year [13] Market Data and Key Metrics Changes - The aerospace and defense sectors showed strong performance, with notable purchases from companies like Boeing and Honeywell, indicating continued confidence in the company's solutions [7] - The company participated in Trident Warrior 25, showcasing its capabilities in distributed advanced manufacturing for military applications [8] Company Strategy and Development Direction - The long-term strategy focuses on trends reshaping manufacturing, including supply chain localization, next-generation mobility, and sustainability goals [6] - The company aims to leverage its technology to mitigate supply chain risks and address geopolitical issues, reinforcing the strategic value of localized manufacturing [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about specific verticals and applications, noting that the stability of recurring revenue streams provides a foundation for growth [20] - The company anticipates improvements in gross margin starting in Q4 2025, driven by price increases and cost reduction efforts [23] Other Important Information - The company ended the quarter with $255 million in cash and no debt, positioning itself well for value-enhancing opportunities [17] - A non-cash impairment charge of $33.9 million related to an investment in Ultimaker contributed to the larger GAAP net loss [16] Q&A Session Summary Question: Can you talk about the gross margin trajectory? - Management expects improvement in gross margin starting in Q4 2025, with a full impact from price increases anticipated [23] Question: Are there significant opportunities with the social media AI company? - Management is optimistic about growth in aerospace, defense, dental, and medical applications, with a focus on high-end manufacturing use cases [25][26] Question: What is the status of production applications and sales cycles? - Management noted slight improvements in sales cycles, with a focus on long-term opportunities in aerospace and defense [30] Question: What is the outlook for consumables revenue? - Consumables revenue is expected to stabilize, with growth anticipated as the company focuses on high-end manufacturing applications [35][36] Question: What are the expectations for operating expenses? - Management expects operating expenses to trend slightly down in Q4 2025, continuing tight cost management while investing in growth [38] Question: How does material pricing impact gross margins? - Management is working on improving material prices to enhance competitiveness, particularly in high-performance applications [39] Question: What is the potential in the dental market? - Management is optimistic about the dental market, highlighting recent leadership hires and strategic focus on restorative dental applications [43][44]

Financial Data and Key Metrics Changes - Third quarter revenue increased by 14% to $46.2 million, up from $40.5 million in the same period last year, with year-to-date revenue growth exceeding 18% [9] - Gross profit increased by 37%, with gross margin expanding by 410 basis points to 25.1% compared to 21% in the third quarter last year [10] - Operating income reached $5.2 million, up by 52.6% year-over-year, while net income for the quarter was $4.8 million compared to $2.9 million a year ago [10] - Adjusted EBITDA increased by 34% to $6.8 million, translating to a record adjusted EBITDA margin of 14.6%, up from 12.4% in the same period last year [12] Business Line Data and Key Metrics Changes - APU revenue increased by 39% year-over-year and 27% sequentially, with year-to-date revenue up by 26% [14] - Heat exchanger revenue grew by 6% year-over-year, with a 14% increase on a year-to-date basis [14] - Landing gear revenue more than doubled year-over-year and nearly doubled sequentially, reflecting a surge in intake [15] - Trading and leasing revenue was down both sequentially and year-over-year, but up by 17% year-to-date [15] Market Data and Key Metrics Changes - The broader aviation market continues to benefit from high fleet utilization and lower aircraft retirements, driving sustained demand for maintenance, repairs, and overall activities [5] - The company maintains a backlog and LTA value at $520 million, indicating durable customer demand [9] Company Strategy and Development Direction - The company is focused on identifying strategic opportunities to accelerate growth, including potential acquisitions to expand capabilities [8] - TAT aims to leverage its strong balance sheet to pursue acquisitions that deepen customer relationships and expand its addressable market [16] - The company has added experienced corporate development executives to evaluate strategic M&A activities [8] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the future, citing a strong backlog and a large pipeline of opportunities [66] - The company is well-positioned to capture more market share, with operational discipline driving greater earning power [17] - Supply chain dynamics require active management, but significant progress has been made in inventory levels [17] Other Important Information - The company ended the quarter with $47.1 million in cash and $12.1 million in total debt, resulting in a low debt-to-EBITDA ratio of 0.5x [13] - Shareholders elected three new independent directors to enhance governance and leadership capabilities [8] Q&A Session Summary Question: How did TAT manage the change in demand this quarter, particularly the increase in landing gear? - Management emphasized the importance of viewing TAT's MRO business on a year-over-year basis rather than quarterly, noting that the increase in landing gear was expected due to entering a new cycle [22] Question: Can you discuss the characteristics of the underserved MRO opportunities? - Management highlighted that the post-COVID crisis and part shortages have created opportunities for flexible companies that can adjust to market needs and provide timely service [24] Question: Can you comment on the recent decline in backlog? - Management stated that the decline is a non-issue, as the backlog is still significantly higher than at the beginning of the year, and they have a strong opportunity pipeline [28] Question: How are operations affected by external disruptions like government shutdowns? - Management noted that while short-term hiccups may occur, there has been no major impact on growth patterns, thanks to a diverse customer base [30] Question: What is the outlook for cash flow sustainability? - Management expressed confidence in sustainable cash flow, citing improved collections and reduced inventory needs moving forward [44] Question: How do gross margins vary across business lines? - Management explained that gross margins can fluctuate due to product mix and operational leverage, emphasizing the importance of looking at long-term trends rather than quarterly comparisons [61]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $5 million, down from $5.4 million in Q2 2025 and $7.4 million in Q3 2024, reflecting a shift from one-time revenue streams to long-term annual recurring revenue [23][24] - GAAP gross margin improved to 60%, up from 55% in Q2 2025 and 52% in Q3 2024, while non-GAAP gross margin remained above 80% since early 2024 [24] - Operating expenses decreased by $17.2 million, or 31%, in the first nine months of 2025, and by $3.4 million, or 21%, in Q3 compared to the prior year [24] Business Line Data and Key Metrics Changes - The company serves over 125 clients, with 45 new accounts signed year-to-date in 2025, surpassing the goal of 40 new accounts [8][12] - More than 50% of new clients have chosen the multi-condition solution, indicating a strong market preference for integrated offerings [11][12] - The average employer account size has nearly doubled compared to last year, contributing to revenue momentum [12] Market Data and Key Metrics Changes - The 2026 pipeline has grown to $69 million, with a target of $12.4 million in new business for implementation in 2026 [11][12] - The company has established partnerships with major health plans and channel partners, reaching over 116 million covered lives [13][14] Company Strategy and Development Direction - DarioHealth aims to transition to a high-margin recurring revenue model, focusing on integrated multi-condition platforms that deliver measurable outcomes [10][27] - The company is expanding its capabilities through strategic collaborations, such as partnerships with OneStep and GreenKey Health, to enhance its service offerings [18][19] - The company is also targeting opportunities in the public sector, driven by policy tailwinds favoring digital health solutions [16][49] Management's Comments on Operating Environment and Future Outlook - Management expects to reach cash flow breakeven by late 2026 to early 2027, supported by a healthy pipeline and operational efficiencies [25][27] - The company is experiencing stronger demand than ever, particularly from blue-chip employers and national insurers [11][12] - Management highlighted the importance of their technology platform as a strategic asset that supports high-margin recurring revenues [27] Other Important Information - The company completed a $17.5 million private placement, enhancing its financial position and signaling investor confidence [22] - DarioHealth is in the process of simplifying its capital structure and enhancing financial resilience through amendments to its credit agreement [22] Q&A Session Summary Question: What is the expected contribution from UnitedHealth's national rollout in 2026? - Management indicated that the rollout is innovative and will be implemented in chunks, but specific revenue contributions from this client were not disclosed [30][31] Question: What is driving the sequential declines in B2B2C revenue? - The decline is primarily attributed to the non-renewal of a large contract with a national health plan and the transition of the pharma business to a recurring revenue model [36][37] Question: Can you provide an update on the pharma services pipeline? - The company is focusing on a recurring revenue model in pharma services and expects to sign two to four accounts that will contribute to revenue next year [39][41] Question: How has the product-market fit and pricing model changed? - The company has adjusted its offerings based on claims-based analytics and engaged new partners to enhance its product solutions, which has improved market fit [44][45]

Financial Data and Key Metrics Changes - Quarterly average assets under management were $1.4 billion, operating revenues were $2.25 million, and net income was $1.5 million, showing a significant increase from the previous year [28][31] - Operating revenues increased by $94,000 or 4% from the same quarter last year, primarily due to increases in advisory and administrative fees for equity mutual funds [29] - Net income after taxes for the quarter increased by $1.2 million compared to the same quarter last fiscal year [31] Business Line Data and Key Metrics Changes - Operating expenses increased by $50,000 or 2%, mainly due to a $101,000 increase in employee compensation and a $52,000 increase in advertising expenses [30] - Other income for the quarter was $2.4 million compared to $995,000 in the prior year, primarily due to higher net investment income [30] Market Data and Key Metrics Changes - The company has experienced a rebound in assets and investment income, which has helped turn the corner after being impacted by the tariff war [13] - Gold reached an all-time high of $4,300, although it has gone through a correction since October [19] Company Strategy and Development Direction - The company is focused on creating thematic products using Smart Beta 2.0 strategy, which requires rigorous backtesting and continuous management [7][8] - U.S. Global has been buying back stock using an algorithm on flat and down days, aiming to enhance shareholder value through dividends and stock repurchases [9][10] Management's Comments on Operating Environment and Future Outlook - Management believes the worst impacts from the election and tariff battles are behind them as they move forward [11] - The company remains optimistic about the travel industry, particularly in Europe and Asia, despite challenges in the U.S. market [16][17] Other Important Information - The company has maintained a strong balance sheet with high levels of cash and investments, including approximately $24.6 million in cash and cash equivalents [32] - The current yield at the share price of $2.60 is 3.46%, and the company has paid a monthly dividend since June 2007 [10] Q&A Session Summary Question: What is the company's outlook on gold investments? - Management highlighted that gold has outperformed the S&P 500 and is considered a crucial diversifier for a diversified portfolio, with recommendations to allocate 10%-15% in gold [20][23] Question: How is the company addressing the challenges in the airline industry? - Management noted that while the U.S. airline industry is facing sentiment challenges, the European and Asian markets are booming, indicating potential for recovery [16][17] Question: What are the company's plans for future product launches? - The company is focused on launching new thematic products, particularly in AI and defense sectors, which are expected to capture significant market interest [18][26]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported comparable sales growth of 1.3%, gross margin expansion of 100 basis points to 52.2%, adjusted operating margin of 9.4%, and adjusted diluted earnings per share increased by 10% to $0.55 [4][22] - For the full year, the company achieved $3.7 billion in revenue, with adjusted diluted earnings per share at $1.90, representing a 12% growth compared to the previous year [4][22] Business Line Data and Key Metrics Changes - In the Sally segment, net sales increased by 1.4% to $542 million, with comparable sales up 1.2% and e-commerce sales growing by 23% to $47 million [25][26] - In the BSG segment, net sales increased by 1.1% to $406 million, with comparable sales up 1.4% and e-commerce sales increasing by 8% to $58 million [27] Market Data and Key Metrics Changes - Global e-commerce sales increased by 15% to $105 million, representing 11% of total net sales [23] - The company maintained a strong margin profile, with gross margin expanding 100 basis points to 52.2% in Q4, driven by the benefits of the Fuel for Growth program [23][24] Company Strategy and Development Direction - The company is focused on four key growth drivers: understanding and activating the customer, unlocking digital value, differentiating with product assortment and innovation, and accelerating new growth pathways [7][21] - The Sally Ignited initiative aims to transform the business into a modern beauty powerhouse, with plans for 50 additional store refreshes in fiscal 2026 [16][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the Sally customer base and the stability of the stylist business, despite some pressure on lower-income consumers due to government shutdowns [40][75] - The company anticipates a strong holiday season and expects to leverage its strategic initiatives to drive growth in fiscal 2026 [41][75] Other Important Information - The company generated strong cash flow from operations of $275 million, which was used for debt repayment and share repurchases [5][28] - The Fuel for Growth program is expected to deliver cumulative run rate savings of approximately $120 million by the end of fiscal 2026 [20][25] Q&A Session Summary Question: Key factors driving performance in each division - Management highlighted the strength of color in both businesses, with color sales up 7% overall, and noted the positive impact of marketplaces and customer activation initiatives [32][35] Question: Consumer environment and comp guidance - Management noted that the Sally customer remains resilient, with a focus on core color categories, while acknowledging some pressure on lower-income consumers due to government shutdowns [39][40] Question: Update on store remodel program - The company has completed 30 store refreshes under the Sally Ignited initiative, with plans for 50 more in fiscal 2026, showing positive customer engagement and sales metrics [47][50] Question: Long-term outlook for EBIT dollar growth - Management expressed confidence in achieving long-term EBIT growth through continued optimization of the Fuel for Growth program and increasing own brand penetration [59][60] Question: Expectations for category growth - Management anticipates continued growth in color, care, and nails, with new category expansions into skin and spa, and a focus on enhancing customer experience [66][67]

Financial Data and Key Metrics Changes - In Q3 2025, funded loan volume increased by 17% year-over-year to approximately $1.2 billion, while revenue grew by 51% to approximately $44 million [18][19]. - The Adjusted EBITDA loss decreased to approximately $25 million, down from $27 million in the previous quarter and $39 million a year ago [37]. Business Line Data and Key Metrics Changes - Funded loan volume growth by product included home equity volume increasing by 52%, refinance loan volume increasing by 41%, and purchase loan volume increasing by 5% year-over-year [18]. - The direct-to-consumer (D2C) channel saw revenue per fund increase to $8,300, with a net contribution margin of $1,772 per fund, reflecting a 64% increase quarter-on-quarter [22]. Market Data and Key Metrics Changes - The company is positioned to fund $500 million in monthly volume, with expectations to double this to at least $1 billion in the next six months due to new partnerships [6][18]. - The marketplace for home equity lines of credit (HELOCs) is expected to be 100% of volume and revenue for the company, contrasting with incumbents who have a small portion of their volume from similar marketplaces [19][20]. Company Strategy and Development Direction - The company is evolving from a direct-to-consumer model to a platform that powers the home finance ecosystem through partnerships with local mortgage lenders and financial institutions [5][6]. - The strategy includes diversifying distribution channels and leveraging AI technology to enhance efficiency and reduce costs, aiming for break-even Adjusted EBITDA by Q3 2026 [21][36]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in scaling rapidly and profitably, citing past growth during favorable rate cycles and the potential for significant market share in the upcoming cycle [17][40]. - The company anticipates that the partnerships will ramp up over the next six months, contributing to substantial growth in loan volume and revenue [51][53]. Other Important Information - The company ended Q3 2025 with $226 million in cash and investments, maintaining strong relationships with financing counterparties [37][38]. - The company is focused on enhancing its go-to-market strategy while managing expenses and diversifying channels to achieve profitability [35][36]. Q&A Session Summary Question: Can you dive deeper into the three recent partnership announcements and how you expect each of these to ramp as we head into 2026? - Management expects the large financial services platform partnership to ramp over the next six months, with potential for multiple billions in monthly volume as user penetration increases [51][52]. Question: How would you characterize the future partnership pipeline right now? - The partnership pipeline has exploded due to the successful implementation of earlier partners and frustrations with incumbent solutions, leading to increased demand for the company's offerings [55][56]. Question: Can you provide detail on the volume opportunity with the top five U.S. personal financial services platform? - The addressable market could be significant, with estimates suggesting potential originations of around $24 billion if penetration rates are achieved [60][61]. Question: What is underpinning the outlook for increased loan volume? - The outlook assumes stable interest rates, with growth driven by partnerships and improvements in the D2C channel, which has seen organic growth of over 50% year-on-year [62][63]. Question: What is the anticipation for customer acquisition cost (CAC) as partnerships grow? - CAC is expected to trend lower as partnerships become a larger part of loan volume, with no upfront CAC associated with partner channels [70].

Financial Data and Key Metrics Changes - Net sales for Q3 2025 reached $5 million, representing a 61% year-over-year growth and a 22% sequential growth from Q2 2025's $4.1 million [5][7] - Gross margin expanded to 31.3% in Q3 2025, up from 7.9% in Q3 2024 and 26.4% in Q2 2025, indicating improved operational efficiencies and product mix [5][8] - The net loss for the quarter was $4.9 million, reflecting ongoing investments in product offerings and manufacturing scaling [5][6] - Cash position at the end of the quarter was $3.8 million, with an additional $3.3 million available on the line of credit, and total indebtedness reduced to $2.9 million from $5.3 million at year-end 2024 [6][11] Business Line Data and Key Metrics Changes - The U.S.-made tonneau cover production led to significant growth, with Q3 net sales reaching $5 million, up from $3.1 million a year ago [7][8] - The AL4 hardcover contributed to strong sales growth, supported by expanded relationships with national distributors and retail chains [8][9] - Year-to-date sales reached $11.4 million, more than double the $5.6 million for the same period in 2024 [7] Market Data and Key Metrics Changes - The tonneau cover market remains healthy, valued at over $3 billion, with a shift towards smaller trucks and higher profit applications benefiting the company [32][33] - The company anticipates a strong growth trajectory in 2026, capitalizing on market conditions and demand shifts [33] Company Strategy and Development Direction - The company aims to build a high-margin, scalable platform in truck accessories and clean tech-enabled power solutions, with a focus on operational cash flow positivity and profitability by 2026 [5][12] - Upcoming product launches, including the HD3 tonneau cover and the Solis and Core systems, are expected to drive revenue growth and enhance margins [13][20] - The company is transitioning R&D focus from foundational build to commercial optimization, aiming to enhance margins and efficiencies post-launch [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for the Solis and Core products, indicating potential for significant market traction [37][39] - The company is confident in its ability to manage tariff-related cost pressures while advancing towards cash flow positivity and maintaining profitability targets for 2026 [25][27] - The operational model prioritizes maintaining gross margins above 35% and improving working capital turns [24][28] Other Important Information - The company completed a Regulation A offering in October 2025, contributing to financing activities [10][11] - The Solis and Core products are set for initial orders starting November 28, 2025, with expected delivery in late December or early January 2026 [20][46] Q&A Session Summary Question: Can you talk about the tonneau market for tonneau covers in general in the United States? - The market remains healthy, with a shift towards smaller trucks and higher profit applications, indicating a strong outlook for 2026 [32][33] Question: Can you leverage your existing distribution for Solis and Core? - The company plans to start online direct-to-consumer sales for initial feedback, with significant interest from dealers [34] Question: What is the visibility on demand for Solis and Core? - Demand for Solis is expected to exceed initial expectations, while the Core has a broader market appeal [37][39] Question: What is driving the improvement in margins? - The majority of margin improvement is attributed to overhead absorption and operational efficiencies, with significant reductions in man-hours per unit produced [41][42] Question: When can customers expect to receive the Solis and Core products? - The Solis is expected to have a lead time of one to two weeks, while the Core is anticipated to ship in late December [45][46] Question: Are there plans for international market expansion? - The company is focusing on Latin America first, with future plans for the European Union and Middle East markets [47] Question: When do you expect the heat pump to go into production? - Production intent for the Aetherlux heat pump is underway, with timelines dependent on certification and tooling [49][50]