Financial Data and Key Metrics Changes - As of September 30, 2025, the company's cash, cash equivalents, and short-term investments were $55.3 million, an increase from $30 million as of June 30, 2025, and $44.1 million at the end of the previous year [14] - The net cash used in operating activities for the nine months ended September 30, 2025, was $21.3 million, compared to $15.6 million for the same period in 2024, primarily due to an increase in net loss [14][15] - The net losses for the three and nine month periods ending September 30, 2025, were $8.6 million and $24.0 million, respectively, higher than the $6.3 million and $16.5 million reported during the same periods in 2024 [17] Business Line Data and Key Metrics Changes - R&D expenses for the three and nine month periods ending September 30, 2025, were $6.4 million and $17.9 million, respectively, an increase from $5 million and $12.6 million in the same periods of the prior year, driven by the progress of the ReMEDy2 clinical trial and the expansion of the clinical team [16] - General and administrative expenses were $2.6 million and $7.3 million for the three and nine month periods ending September 30, 2025, up from $1.9 million and $5.7 million in 2024, attributed to increased non-cash share-based compensation and personnel costs [16][17] Market Data and Key Metrics Changes - The enrollment rates for the ReMEDy2 stroke trial have been lower than initially projected due to changes in stroke referral patterns, with current enrollment approaching 50% of the target for the interim futility analysis [10][11] - The company is currently utilizing actual enrollment rates from clinical trial sites instead of historical rates for more accurate forecasting [11][36] Company Strategy and Development Direction - The company is focusing on advancing its clinical programs, particularly DM199, which is positioned as a first-in-class treatment for preeclampsia and other vascular-related conditions [3][4] - Plans include expanding clinical studies into early onset preeclampsia and fetal growth restriction cohorts, with a U.S. phase two trial anticipated to begin soon [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current cash position to fund planned clinical studies and operations into the second half of 2027 [14] - The management team remains optimistic about the potential of DM199 based on encouraging interim results and the unique safety profile of the drug [4][22] Other Important Information - The company completed an in-person pre-IND meeting with the FDA, which was deemed productive, and is preparing for a phase two trial in the U.S. [9] - The Independent Data Safety Monitoring Board reported no safety concerns in the ReMEDy2 trial, allowing enrollment to continue without modification [12] Q&A Session Summary Question: Discussion on preeclampsia KOL community engagement and trial site considerations - Management highlighted extensive outreach to KOLs, receiving encouraging feedback regarding DM199's safety profile and efficacy in reducing blood pressure [20][22] Question: Details on protocol amendments and dosing outcomes - Management explained that part 1B will focus on IV dosing until delivery, allowing physicians to adjust dosing as needed based on patient response [23] Question: Clarification on the purpose of the 12 patient expansion cohort - The 12 patient cohort was intended to supplement the original plan for part 1B, focusing on the highest dose observed in cohort 10 [27][28] Question: Expectations for enrollment rates and site activation for the stroke trial - Management noted that historical enrollment rates were around 0.25, but current rates are slightly lower, with over 35 sites activated and more coming on board [35][36] Question: Meaningful change expectations for the modified Rankin Scale score at interim analysis - A 15% absolute improvement in the mRS score is expected to be meaningful, with adjustments made to the protocol to exclude severe stroke patients [42][43]

Financial Data and Key Metrics Changes - The company reported a net loss of $9 million or $0.19 per basic and diluted share for Q3 2025, compared to a net loss of $10.7 million or $0.29 per basic share in the prior year's quarter, indicating a decrease in net loss primarily due to lower operating expenses [15][16] - Research and development expenses were $4.6 million for Q3 2025, down from $6.8 million in the prior year, attributed to lower manufacturing and clinical expenses [16] - General and administrative expenses increased to $3.6 million in Q3 2025 from $3.4 million in the prior year, mainly due to higher professional fees [16] - Total operating expenses were $8.1 million for Q3 2025, down from $10.2 million in the prior year [17] - Cash balance as of September 30, 2025, was $26.2 million, down from $41.7 million at the beginning of the year [17] Business Line Data and Key Metrics Changes - The VERSATILE-002 trial showed a median overall survival of 39.3 months for patients with a combined positive score (CPS) of greater than or equal to one, with a progression-free survival (PFS) of 6.3 months among these patients [5][6] - The company plans to amend the VERSATILE-003 trial to include PFS as a primary endpoint alongside median overall survival, based on the strong data from VERSATILE-002 [8][9] Market Data and Key Metrics Changes - The company highlighted that HPV-positive head and neck cancer is becoming a significant medical issue, with over 90% of HPV-positive oropharyngeal cancers being HPV-16 positive [11][30] - Recent market research indicates a growing incidence of HPV-positive head and neck cancer, with traditional causes like tobacco and alcohol declining [30] Company Strategy and Development Direction - The company is focusing on HPV-16 positive head and neck cancer, believing it will become the dominant type of head and neck cancer in the next decade [30][31] - The company is engaging with the FDA to discuss amendments to the VERSATILE-003 trial protocol, aiming to potentially shorten the time to regulatory submission while maintaining median overall survival as an endpoint for full approval [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of PDS0101 as a well-tolerated treatment option for HPV-16 positive patients, who currently lack effective therapies [11][30] - The management noted that the industry is recognizing the growing problem of HPV-positive head and neck cancer, which is reflected in recent publications and market research [10][30] Other Important Information - The National Cancer Institute presented new clinical data at the 2025 Society for Immunotherapy of Cancer meeting, validating the scientific basis of the company's immunotherapy platforms [12][13] - The colorectal cancer cohort of the phase two clinical trial with PDS01ADC met criteria for expansion to stage two following positive results [13] Q&A Session Summary Question: How will the company handle patients already enrolled in the VERSATILE-003 trial during the protocol pause? - The company will continue to treat patients already enrolled in the trial and will discuss their incorporation into the trial with the FDA [20][22] Question: What is the expected PFS for the control Keytruda? - The company conservatively assumes that the PFS in the control arm will be around three months, based on previous studies [26][27] Question: How is the company addressing physician training and awareness regarding pseudoprogression in the VERSATILE-003 study? - The company has trained investigators to recognize pseudoprogression and will conduct central reviews of scans to ensure accurate assessments [39][40]

Financial Data and Key Metrics Changes - The company reported revenue of $438 million for Q3 2025, representing a 14% year-over-year increase, with year-to-date revenue of $1.27 billion also up 14% [18] - Adjusted EBITDA for Q3 was $111 million, reflecting a 16% growth year-over-year, while year-to-date adjusted EBITDA reached $330 million, up 13% [19] - Net income for Q3 was $33 million, a significant improvement from a loss of $6 million in the prior year, with adjusted net income of $48 million, up 47% year-over-year [20] Business Line Data and Key Metrics Changes - North America revenue in Q3 was $331 million, an increase of 14%, driven by robust growth across all three end markets [21] - International revenue was $107 million, a 12% increase, with growth balanced across mature and developing markets [23] - Adjusted EBITDA margin for North America was 29%, flat year-over-year, while international adjusted EBITDA margin declined modestly in Q3 compared to the prior year [22][24] Market Data and Key Metrics Changes - The company holds approximately 40% market share in North America and serves customers in 150 countries, indicating strong global presence [7][8] - The U.S. commercial laundry market is estimated to be a $6 billion market, with over 20,000 retail locations [6] - Emerging markets are seen as having significant growth potential, particularly in the vended market [14] Company Strategy and Development Direction - The company focuses on producing high-quality, reliable commercial laundry systems, emphasizing total cost of ownership (TCO) [8][12] - A clear growth strategy is in place, targeting long-term sustainable performance through innovation and market expansion [13] - The company is committed to deleveraging and maintaining a disciplined approach to capital allocation, with a focus on organic growth and selective acquisitions [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the laundry industry, highlighting its essential nature and ability to provide downside protection during economic downturns [5][6] - The company anticipates a moderation in growth rates for Q4, projecting mid-single-digit revenue growth, but remains optimistic about long-term prospects [29] - Management noted that the company is well-prepared for potential supply chain challenges, maintaining sufficient inventory and alternative sourcing options [33] Other Important Information - The company has successfully reduced its net leverage ratio to approximately 3.1 times following the IPO, enhancing financial flexibility [17][27] - Recent innovations include the launch of ScanPayWash, a cashless payment technology, and the Stax X product, designed for high throughput in limited spaces [16] Q&A Session Summary Question: How have competitors responded to the tariffs? - Management noted that one small Asian competitor increased prices by 16.5%, but overall, there has been little notable activity from competitors [31] Question: What are the strategic benefits of acquiring distributors? - The acquisition of distributors allows for closer customer relationships and targeting of high-opportunity urban markets, enhancing growth potential [32] Question: How is the company managing supply chain challenges? - Management reported no significant supply chain issues, maintaining adequate inventory levels and alternative sources of supply [33] Question: What progress has been made in expanding digital solutions? - The company is focused on long-term growth in digital solutions, with early success in the ScanPayWash technology, indicating strong potential for future revenue [34] Question: What is the outlook for the CIH segment given consumer spending headwinds? - Management indicated strong demand for their commercial-grade products, with no changes in delivery timelines [35] Question: What are the plans for further deleveraging? - The company aims to continue deleveraging through strong free cash flow and will consider returning capital to shareholders in the future [37] Question: What is the expected trajectory into Q4? - Management expects a return to a more normalized growth rate in Q4, with no changes in demand or customer sentiment [39] Question: How will pricing actions impact future profitability? - Management confirmed that pricing increases implemented throughout the year will benefit future profitability, with no history of price reductions [53]

Financial Data and Key Metrics Changes - The company reported a core EPS growth of 16% year-over-year, supported by record core earnings and strong underlying business growth across various segments [9][12][27] - The LICAT ratio remained strong at 138%, indicating a solid capital position, while the leverage ratio improved to 22.7% [9][26] - Book value per share increased by 7% year-over-year, reflecting continued capital return to shareholders [9][25] Business Line Data and Key Metrics Changes - Insurance new business performance showed growth of 15% or greater in new business CSM across all segments, with total new business CSM increasing over 20% year-over-year for the fifth consecutive quarter [8][12][13] - Asia segment reported a 29% year-on-year increase in core earnings, with APE sales up 5% and new business CSM increasing by 18% [10][19] - Global WAM experienced net outflows of $6.2 billion but maintained a record level of core earnings with a 19% increase in pre-tax core earnings [8][20][21] - The U.S. segment saw APE sales growth of 51%, but core earnings decreased by 20% due to unfavorable life insurance claims experience [24][25] Market Data and Key Metrics Changes - The company is expanding into the Indian insurance market through a joint venture with Mahindra, aiming to leverage local expertise and distribution [6][30] - The company continues to focus on Asia and global WAM for growth opportunities, with a strong emphasis on digital innovation and AI [7][10] Company Strategy and Development Direction - The refreshed enterprise strategy aims to build on strengths and focus on sustainable growth, with a diversified portfolio to mitigate risks [5][6][8] - The company plans to enhance its leadership position in its home market while maintaining a scaled presence in the U.S. [6][7] - Investments will be made to leverage AI capabilities and improve customer engagement [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 financial targets, emphasizing the importance of diversified growth across segments [9][27] - The company remains optimistic about the fundamentals in Asia, particularly in markets like China and Singapore [32][33] - Management acknowledged challenges in net flows but highlighted strong core earnings generation and operational resilience [12][27] Other Important Information - The company returned nearly $4 billion of capital to shareholders year-to-date through dividends and share buybacks [25][26] - The annual actuarial review resulted in a favorable impact on reserves, validating the prudence of the company's reserves [18][48] Q&A Session Summary Question: Details on the India venture - Management highlighted the favorable regulatory environment and digital infrastructure in India, with expectations to launch operations within 12-18 months [30][31] Question: Outlook for Asia markets - Continued strong sales growth is expected in Asia, with broad-based success across multiple markets [32][33] Question: Private credit exposure - The company has a CAD 4 billion below-investment-grade private credit portfolio, focusing on middle-market lending [34] Question: Impact of mandatory provident fund fee changes - Guidance remains intact for a $25 million quarterly impact post-transition, with expectations for improved margins [36][37] Question: Actuarial review impact - The annual review led to a reserve reduction of $605 million, positively impacting core earnings [48][49] Question: U.S. business strategy - The focus remains on high net worth customers, with no intention to revert to previous high-risk products [57][58]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved organic net sales growth of 2.5%, aligning with expectations despite external pressures [7][22] - Adjusted gross margin rate decreased by 330 basis points, primarily due to unexpected year-end inventory adjustments and increased trade promotions [26][28] - Adjusted operating income was $40.3 million, representing 7.5% of net sales, down from 10.8% the previous year [28] Business Line Data and Key Metrics Changes - International organic net sales grew by 6.9%, driven by volume and price gains across all segments [22] - North America experienced a decline in organic net sales by 60 basis points, with wet shave sales declining approximately 1% [23] - Sun and skin care organic net sales increased by approximately 11%, with robust growth across each business segment [24] Market Data and Key Metrics Changes - International markets, representing about 40% of global sales, delivered strong growth for the fourth consecutive year, with Europe achieving its third straight year of growth [8][9] - The U.S. razor and blades category saw consumption down by 80 basis points, although market share improved sequentially [23] - The Billie brand achieved a 90 basis point share growth, indicating strong retail performance [24] Company Strategy and Development Direction - The company plans to divest its feminine care business to focus on core categories with competitive advantages, including shave, sun, and skincare [6][20] - A multi-year innovation roadmap is being implemented, with significant investments in brand building and marketing to restore brand equity [11][14] - The transformation plan aims to simplify the U.S. structure, enhance decision-making speed, and increase investment in growth capabilities [12][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging fiscal 2025 due to external pressures like tariffs and geopolitical tensions, but expressed optimism about durable international growth and innovation [8][20] - The outlook for fiscal 2026 anticipates a return to organic net sales growth, driven by mid-single-digit growth in international markets and stabilization in North America [16][34] - The company expects to face continued inflation and tariff impacts but is focused on productivity gains and margin recovery [16][36] Other Important Information - The company declared a quarterly dividend of $0.15 per share for Q4 and completed approximately $90 million in share repurchases for the fiscal year [29] - The anticipated divestiture of the feminine care business is expected to impact adjusted EPS by approximately $0.40-$0.50 annually [32] Q&A Session Summary Question: Outlook and EPS Expectations - The company expects a balanced and achievable plan for 2026, with EPS potentially at a loss in Q1 due to margin pressures and tax rate changes [40][41] Question: Strategy and Portfolio Focus - The strategy focuses on winning in shave, grooming, sun, and skin categories, with plans for potential M&A as asset values decline [45][46] Question: Productivity and Gross Margin Concerns - Management expressed confidence in the second-half-oriented plan, expecting higher sales growth and productivity improvements to enhance gross margin [50][52] Question: Use of Proceeds from Divestiture - Proceeds from the feminine care sale will primarily be used for debt reduction, with a focus on maintaining a disciplined capital allocation strategy [54][55] Question: Sun and Skin Category Outlook - The company plans conservatively for the sun category, expecting low single-digit growth while investing in brand campaigns for Hawaiian Tropic and Banana Boat [57][58]

Financial Data and Key Metrics Changes - Overall third quarter revenue was $295.3 million, down 9.8% sequentially and 12.2% year-over-year [16] - Adjusted EBITDA for Q3 2025 was $64 million, representing a margin of 21.7%, consistent with Q2 2025 levels despite lower revenues [17] - Adjusted EPS for Q3 2025 was $0.16, including adjustments totaling $2.3 million [18] - Gross debt totaled $332.9 million, and net debt was $263.3 million, with a net debt-to-adjusted EBITDA ratio of 0.93 [19] Business Line Data and Key Metrics Changes - Revenue decline was primarily due to the transition between major contracts in Saudi Arabia, partially offset by growth in Kuwait, Qatar, and Iraq [16][17] - Growth was noted in Kuwait, Oman, Egypt, Algeria, Iraq, and Libya, indicating a diversified performance across regions [17] Market Data and Key Metrics Changes - The company is experiencing a positive activity inflection in Kuwait and Saudi Arabia, with increased activities across most operational countries [5][6] - The Gulf Cooperation Council (GCC) is positioned as a leader in the AI revolution, which is expected to drive energy demand [6][7] Company Strategy and Development Direction - The company has secured a multi-billion dollar contract for the Jafurah project, which is a cornerstone achievement and part of a broader growth strategy [4][10] - NESR's countercyclical investment strategy allows it to capitalize on global market weaknesses, positioning the company for growth while others are cutting back [12][13] - The company aims to maintain operational readiness and efficiency while investing during downturns, which is expected to yield long-term benefits [14][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a $2 billion revenue run rate by the end of 2026, supported by awarded contracts and operational execution [20][72] - The outlook for 2026 and beyond remains positive, with expectations of continued growth driven by strategic investments and market opportunities [24][73] Other Important Information - The company is in the process of refinancing its debt facility, expected to enhance financial flexibility [23] - NESR is focused on maintaining disciplined debt reduction and improving working capital efficiency [24] Q&A Session Summary Question: Can you explain how NESR was able to price competitively for the Jafurah contract while maintaining margins? - Management highlighted their deep understanding of the local ecosystem and cost control measures that allowed them to maintain profitability [30][31] Question: What is the roadmap for development at Jafurah and expected activity levels? - Management indicated plans to ramp up to 1,500 stages per month by 2026, with flexibility to adjust based on client needs [34][35] Question: What is the expected incremental EBITDA from the Jafurah project? - Management confirmed an approximate incremental EBITDA of $100 million for 2026, based on current margins [38] Question: Can you provide updates on NEDA projects and water initiatives? - Management stated that several pilot projects are underway, with results expected to be shared in future calls [66][68] Question: What is the confidence level in achieving the $2 billion exit run rate for 2026? - Management expressed a 99% confidence level in achieving the $2 billion run rate, supported by signed contracts and ongoing work [72]

Financial Data and Key Metrics Changes - The fleet-wide time charter equivalent was approximately $47,000 per vessel per day, with VLCCs at nearly $46,000 and Suezmaxes at $48,000 [2][4] - Adjusted EBITDA for the quarter was $45.2 million, adjusted net profit was $24.7 million, and adjusted EPS was $0.77 [2][4] - Total distributions over the last four quarters amounted to $2.12 per share, representing about 90% of earnings for the period [3] Business Line Data and Key Metrics Changes - TC revenue for the nine months reached $172.5 million, with EBITDA close to $125 million and reported net income exceeding $63.5 million [4] - The company achieved near-perfect utilization across the fleet, with VLCCs earning $45,500 and Suezmaxes at $48,200 per day [9] Market Data and Key Metrics Changes - The company reported that 80% of VLCC spot days are fixed at $88,100 per day, and 48% of Suezmax days at $60,800 per day, leading to a fleet-wide average of $80,700 per day [11] - Crude tanker utilization is now at 93%, the highest level in three years, which corresponds to highly attractive rates [25] Company Strategy and Development Direction - The company continues to focus on maximizing shareholder value through dividends, having distributed over 90% of adjusted EPS since 2022 [3][4] - The management emphasized the importance of maintaining a young, eco-friendly fleet, which is fully scrubber-fitted, to outperform in an aging market [17][24] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in a strong Q4, with rates continuing to strengthen and bookings looking promising [11][13] - The tanker market is described as a bull market, with tightening global sanctions restricting the supply of compliant tonnage, which is expected to support freight rates [13][21] Other Important Information - The company has declared purchase options for two vessels, expected to be delivered in mid-2026, and is exploring refinancing options to improve capital structure [7][8] - The management highlighted that over 40% of the global VLCC and Suezmax fleet is over 15 years old, which supports the value of modern vessels [15][16] Q&A Session Summary Question: How do you see time charter opportunities now? - The management noted that the strength of the market has caught charters off guard, and while there are opportunities for time charters, rates need to increase significantly to make sense for owners [30][31] Question: Can you discuss your strategy today regarding investments? - The focus remains on paying dividends, with attractive investments being those that can deliver quickly. The management emphasized the importance of maintaining a strong dividend payout [32][33] Question: Would you want to continue to scale into VLCCs and Suezmaxes? - The management indicated a preference for VLCCs and Suezmaxes, stating that they could grow the fleet to 20 or 25 ships without impacting trading strategies [40][41] Question: Do you plan on continuing trading clean, or will you flip back into the crude fleet? - The management plans to return to trading crude after discharging gas oil, as the crude market remains strong [49] Question: Where else along the capital structure do you see opportunity? - The management highlighted that they have taken advantage of a competitive financing market and continue to explore options to improve their capital structure [51][52]

Financial Data and Key Metrics Changes - The fleet-wide time charter equivalent was approximately $47,000 per vessel per day, with VLCCs at nearly $46,000 and Suezmaxes at $48,000 [2][4] - Adjusted EBITDA for the quarter was $45.2 million, adjusted net profit was $24.7 million, and adjusted EPS was $0.77 [2][4] - Total distributions over the last four quarters amounted to $2.12 per share, representing about 90% of earnings for the period [3] Business Line Data and Key Metrics Changes - The company reported TC revenue for the nine months at $172.5 million, with EBITDA close to $125 million and reported net income exceeding $63.5 million [4] - The average age of the fleet is six years, with a total of 14 vessels, including six Suezmaxes and eight VLCCs [5] Market Data and Key Metrics Changes - The company achieved near-perfect fleet utilization, with VLCCs earning $45,500 and Suezmaxes at $48,200 per day [9] - As of the call, 80% of VLCC spot days were fixed at $88,100 per day, and 48% of Suezmax days at $60,800 per day, leading to a fleet-wide average of $80,700 per day [11] Company Strategy and Development Direction - The company focuses on maximizing shareholder value through consistent dividend distributions, having declared a dividend of $0.75 per share for the quarter [2][3] - The management emphasized the importance of maintaining a young, eco-friendly fleet to outperform in a tightening market [18][25] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in a strong Q4, with rates continuing to strengthen and a bullish outlook for the tanker market driven by increased cargo flows and tightening sanctions [13][19] - The company noted that the effective supply of compliant crude is manageable, with OPEC Plus underproducing its quota [19][20] Other Important Information - The company has successfully refinanced its vessels, improving margins by 155 basis points since 2023, which translates to an annual benefit of about $8 million at current debt levels [6][39] - The management highlighted that over 40% of the global VLCC and Suezmax fleet is over 15 years old, indicating a shrinking compliant fleet [15][21] Q&A Session Summary Question: How do you see time charter opportunities now? - The management noted that the strength of the market has caught many charters off guard, and while there are opportunities for time charters, rates need to increase significantly for long-term deals to make sense [28][29] Question: Can you discuss your strategy regarding investments in today's market? - The focus remains on paying dividends, with the most attractive investments being assets that can deliver quickly. The management emphasized a cautious approach to selecting opportunities [31][34] Question: What are your thoughts on scaling into VLCCs and Suezmaxes? - The management indicated a preference for VLCCs and Suezmaxes, stating that they could comfortably grow the fleet without impacting trading strategies [33][35] Question: Will you continue trading clean or revert to crude? - The management plans to revert to crude trading after discharging current clean cargoes, as the crude market remains strong [37] Question: What opportunities do you see along the capital structure? - The management highlighted the successful refinancing efforts and the potential for further improvements in capital structure as market conditions remain favorable [39]

Financial Data and Key Metrics Changes - The group's revenue for Q3 2025 was RMB 19.9 million, reflecting a 15% year-over-year growth and a 1% sequential growth, which was at the high end of the guidance provided [5][18] - The company achieved its first-ever back-to-back quarterly net GAAP profit, indicating strong business performance [4][18] - Gross profit grew by 20% year-over-year, reaching the highest level in the past 15 quarters, with improved gross margin [6][13] - Net operating cash inflow was RMB 23.3 million, the highest since Q4 2020, indicating a strong cash position [6][17] Business Line Data and Key Metrics Changes - EngageLab, the flagship product, recorded an ARR of RMB 53.7 million, representing a 160% year-over-year growth [8][18] - Financial Risk Management business achieved its highest quarterly revenue of RMB 22.6 million, with a 43% year-over-year growth [5][12] - Developer services revenue increased by 12% year-over-year, while subscription revenue grew by 11% year-over-year [7][8] - Value-Added Services revenue grew by 22% year-over-year but decreased by 34% quarter-over-quarter [10][11] Market Data and Key Metrics Changes - EngageLab's customer base increased by 156% year-over-year, reaching 1,312 customers, with sales in over 52 countries [9][10] - The Financial Risk Management segment saw a 44% growth in customer numbers, contributing to its revenue growth [12] Company Strategy and Development Direction - The company is focused on expanding its global footprint, with EngageLab positioned as a key driver for revenue growth over the next 12 to 24 months [10][29] - Continuous investment in product improvements and customer service has been emphasized as a strategy to maintain growth [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining revenue growth momentum, with Q4 2025 revenue guidance projected between RMB 94 million and RMB 96 million, indicating a 1%-3% year-over-year growth [20] - The company highlighted the importance of maintaining high gross margins while expanding revenue [34] Other Important Information - The company has initiated a share repurchase program, increasing the authorization to repurchase up to $10 million worth of ordinary shares [21] - Total deferred revenue reached a historical high of RMB 166.3 million, indicating strong customer loyalty and predictable future revenue [16][35] Q&A Session Summary Question: Strength of EngageLab business and growth trajectory - Management highlighted that EngageLab's ARR reached RMB 53.7 million, a 160% increase year-over-year, driven by product improvements and global customer engagement [24][26] Question: Recap of what went well in Q3 for GAAP net profit - Management noted strong revenue growth across all business lines, with EngageLab contributing RMB 13 million, and emphasized the importance of maintaining margins while achieving revenue growth [32][34]

Financial Data and Key Metrics Changes - Total revenues increased by 15% year-on-year to RMB 299 billion in Q3 2025, outpacing the group of MBS total retail sales [17] - Non-GAAP net profit was RMB 5.8 billion, with a non-GAAP net margin of 1.9%, both down year-on-year [24] - JD Retail's gross margin expanded year-on-year for 14 consecutive quarters, reaching 19.3% in Q3 [21] Business Line Data and Key Metrics Changes - JD Retail revenues grew by 11% year-on-year to RMB 251 billion, with general merchandise revenues up 19% year-on-year [8][18] - Marketplace and marketing revenues increased by 24% year-on-year, marking the highest growth since Q2 2022 [19][71] - Food delivery business achieved double-digit growth in GMV quarter-on-quarter, with a healthier order mix and narrowing operating loss [11][50] Market Data and Key Metrics Changes - Quarterly active customer number increased by over 40% year-on-year, surpassing 700 million in October [6][62] - User shopping frequency on the platform also rose by over 40% year-on-year [7] - Logistics and other service revenues grew by 35% year-on-year, driven by incremental delivery revenues from the food delivery business [20] Company Strategy and Development Direction - The company aims to expand market share in core retail while enhancing synergies across its business ecosystem [5] - Focus on product innovation, price optimization, and service enhancement to strengthen market position in home appliances and electronics [35][36] - International expansion is a key long-term strategy, with gradual establishment of a global retail network [39][40] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the general merchandise category and the food delivery business [10][15] - The company is committed to improving user experience and operational efficiency to drive sustainable growth [24][54] - Management highlighted the importance of AI applications in enhancing operational capabilities and user engagement [65][66] Other Important Information - The company unveiled its AI roadmap, launching several new AI products and applications across various sectors [14][65] - The food delivery business is expected to create synergies with JD Retail, enhancing user engagement and retention [63][64] Q&A Session Summary Question: Outlook for electronics and home appliances growth - Management acknowledged the high base effect from government training subsidies but emphasized ongoing product innovation and market share enhancement strategies [30][33] Question: International strategy post-acquisition - Management outlined a gradual approach to international expansion, focusing on establishing a local e-commerce model and enhancing user experience [39][40][42] Question: Duration of investment in food delivery - Management indicated a long-term commitment to food delivery, focusing on improving operational efficiency and user experience [48][50] Question: Strengthening competitive edge in general merchandise - Management highlighted ongoing efforts in product optimization, cost reduction, and enhancing user mind share in key categories [56][57] Question: Synergies from food delivery traffic - Management reported strong user retention and engagement from food delivery, with significant cross-category purchasing trends [61][62] Question: Latest AI strategy and investment - Management detailed the comprehensive AI capability framework and its applications across various sectors, emphasizing the potential for improved efficiency and user experience [65][66] Question: Ecosystem development and 3P merchants - Management reported over 200% year-on-year growth in active merchants and emphasized the importance of enhancing merchant operations and user mind share [70][71] Question: Profitability and margin outlook - Management expressed confidence in long-term margin expansion driven by ecosystem growth, supply chain advantages, and category mix optimization [76][77]