Financial Data and Key Metrics Changes - Net revenues for Q3 2025 were $4 million, a decrease of $3 million or approximately 42% compared to Q3 2024 [5] - Operating expenses were $3.9 million, reflecting a $1.2 million or 24% improvement year-over-year [5] - Operating loss was $3.5 million, showing a $0.1 million or 2% improvement from Q3 2024 [5] - Net loss for the quarter was $3.0 million, an improvement of $0.1 million or 2% from Q3 2024 [5] - Basic and diluted loss per share was $0.20, improving by $0.10 per share from Q3 2024 [5] - The company had $450,000 in unrestricted cash on hand at the end of Q3 [6] Business Line Data and Key Metrics Changes - The company is focusing on self-funded health benefit programs, which are gaining popularity among employers due to cost savings [3] - Marpai Rx program is highlighted as a differentiating factor in winning new business [9] Market Data and Key Metrics Changes - The total addressable market for the TPA industry is over $150 billion, expected to grow by 123% by 2031 [4] - The growth is driven by rising healthcare costs, increasing employer-sponsored health plans, and technological advancements [4] Company Strategy and Development Direction - The company is consolidating claims processing into a single operating system to unlock significant cost savings [6] - The focus is on leveraging renewed efficiencies to capture market share and deliver long-term value [11] - The company aims to disrupt the $5.5 trillion U.S. healthcare market with a scalable platform [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future potential, citing a successful capital raise and strategic partnerships [6] - The organization is positioned to pivot from recovery to aggressive, sustainable growth [11] - The CEO emphasized a commitment to improving patient outcomes at lower costs [10] Other Important Information - The company completed a $3.9 million PIPE transaction to strengthen its financial position [6] - The rollout of the Empara Client Experience Tool is expected to enhance client retention and new business [8] Q&A Session Summary - There were no questions from participants during the Q&A session [12][13]

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 [23][24] - Cash burn rate for the third quarter was $900,000, which included approximately $500,000 in outside contractor development costs for the implantable device [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 [9][10] - 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][13] - The company has secured financing to support the development of the Veris implantable device, with a planned FDA submission in 2026 [12][13] Market Data and Key Metrics Changes - Medicare contractor meeting in September was successful, with experts endorsing Medicare coverage for EsoGuard, indicating a positive outlook for future revenue [10][11] - The company remains the largest shareholder of Lucid Diagnostics, holding approximately 23% of common shares, which reflects a significant influence despite no longer having voting control [21] Company Strategy and Development Direction - The company aims to stabilize its corporate structure and balance sheet, with ongoing efforts to build a diversified portfolio of independently financed subsidiaries [5][6] - Plans to expand the commercial offering of Veris beyond remote patient monitoring, incorporating clinical support services and AI-based clinical decision tools [17][40] - A licensing agreement for breakthrough endoscopic imaging technology is in the final stages, which will be developed under a separate subsidiary [8][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to complete restructuring efforts and reignite broader visions for innovation [27][28] - The company is optimistic about the prospects of new technologies and partnerships, including those with Duke University and UNC [8][28] Other Important Information - The company has transitioned to a new development and manufacturing partner for the implantable device, which is progressing well [32] - The regulatory strategy for the implantable device is clear, with minimal clinical data required for FDA submission [35] Q&A Session Summary Question: Status of the implantable monitor development - Management confirmed that development is progressing well with a new partner and that minimal clinical trials are required for FDA submission [31][32] Question: Commercialization conversations with other cancer centers - Management indicated that they plan to start commercialization discussions with other centers in the first quarter after initial volume at OSU [36][38] Question: Exclusivity and timing of the endoscopic imaging technology agreement - Management confirmed that a definitive license agreement is expected soon, with development work to begin immediately after signing [42][46]

Financial Data and Key Metrics Changes - For Q3 2025, total revenue was $13.8 million, an 11% decrease from $15.4 million in the prior year quarter, primarily due to lower contributions from healthcare operations [14] - Pharmacy prescription revenues increased by approximately $400,000 or 5% to $9.5 million compared to the prior year, driven by higher reimbursement rates [14] - Gross profit margin for the quarter was 19.9%, down from 23.2%, reflecting softer performance in both segments [16] Business Line Data and Key Metrics Changes - The healthcare operations segment experienced a decline of approximately $1.5 million, while the e-commerce segment saw a modest decrease of about $100,000 [14] - 340B contract revenue for Q3 2025 decreased to $600,000 from $2.5 million in the prior year quarter due to transitions of certain covered entities [15] - E-commerce revenue totaled $3.7 million compared to $3.8 million in the prior year quarter, a 4% decline mainly related to lower hardware sales [15] Market Data and Key Metrics Changes - The 340B business dispensed more than 1,600 prescriptions in October, resulting in over a 140% rise in monthly contract revenue compared to earlier lows [11] - Retail prescription business volumes increased by 27% from earlier lows in 2025, supported by new government pharmacy service contracts [11] Company Strategy and Development Direction - The company is focused on improving operations, reducing costs, and growing the business, with expectations for more significant impacts in Q4 2025 and into 2026 [3][5] - Plans include adding to the sales team and enhancing business development efforts to capitalize on market opportunities [20] - The company aims to achieve operational break-even in the second half of 2026 [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q3 results reflect ongoing challenges but believe they represent a low point, with expectations for improvement in subsequent quarters [19] - The company is encouraged by progress in the 340B business and overall operational improvements, positioning for continued growth [12][19] Other Important Information - The company has reduced employee headcount by 50 since the start of the year, resulting in approximately $200,000 in monthly payroll savings [10] - Total operating expenses decreased by nearly 40% to $4.7 million compared to approximately $7.8 million in Q3 2024 [16] Q&A Session Summary Question 1: Current plans for the buyback - The company continues to monitor the market for share repurchases while being prudent with cash deployment [21] Question 2: Impact of NASDAQ extension on stock price plans - The extension is welcomed, but the focus remains on improving financial results to boost investor confidence [21] Question 3: Views on China amid uncertainties - Despite tariff challenges, there are still opportunities for non-U.S.-made products, and inventory sells quickly once in China [21] Question 4: Status of ongoing lawsuits - The company has resolved two matters and is working to resolve the final matter while protecting shareholder interests [22]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported a GAAP net income of approximately $700,000 or $0.01 per share, and distributable earnings of approximately $1 million or $0.02 per share [11][4] - Net interest income for Q3 was $5.1 million, down from $7 million in Q2, primarily due to a decline in the average outstanding unpaid principal balance (UPB) of the portfolio and the reversal of certain accrued interest [12][11] - Total operating expenses decreased slightly to $3.1 million in Q3 from $3.2 million in Q2, mainly due to lower fees paid to the manager [12] Business Line Data and Key Metrics Changes - The loan portfolio consisted of 51 floating-rate loans with an aggregate UPB of approximately $840 million, with a weighted average floating rate of SOFR plus 355 basis points [17] - The weighted average risk rating remained flat at 3.5, with 46% of loans rated 3 or better, down from 63% in the previous quarter [17][18] Market Data and Key Metrics Changes - The multifamily sector showed stable fundamentals with modest rent growth and strong occupancy rates, supported by a slowdown in new supply [6] - Year-to-date issuance in the CRECLO market exceeded $25 billion, indicating healthy liquidity and investor confidence [6] Company Strategy and Development Direction - The company aims to redeploy capital into its core lending strategy focused on middle-market multifamily properties, emphasizing active asset management and resolving legacy positions efficiently [10] - The recent financing agreement with J.P. Morgan provides up to $450 million in aggregate advances, enhancing the company's flexibility to manage capital and pursue new financing opportunities [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in having a good handle on the portfolio and identified known issues, with no expectation of further downgrades unless market conditions change [23] - The company remains focused on asset management and cash preservation while looking to add new assets as market conditions stabilize [24] Other Important Information - The company recorded a provision for credit losses of approximately $900,000 and charged off $200,000 against the allowance for an asset that went REO in Q3 [13] - The total equity at the end of the quarter was approximately $230 million, with a total book value of common stock at approximately $170 million or $3.25 per share [15] Q&A Session Summary Question: Have the bulk of the issues in the portfolio been identified? - Management feels confident in their understanding of the portfolio and believes they have identified all known issues, with no expectation of further downgrades unless market conditions change [23] Question: What is the focus for portfolio growth in the coming quarters? - The company plans to focus on asset management while also looking to add new assets, supported by the new financing [24] Question: What is the timing for expectations for REO sales? - REO sales timing is asset-specific, with potential for quick disposals or longer-term holds depending on the asset's condition and management improvements [25][26] Question: Is there any change in the relationship with ORC USA? - There is no change in the relationship, and the acquisition of Hilco is not expected to create any material conflict with LFT's business [31] Question: How does the value increase of REO affect shareholders? - Any increase in value after foreclosure would benefit the shareholders of LFT, as the company owns the REO [32] Question: Can the new financing with J.P. Morgan be used to retire existing debt? - The J.P. Morgan line provides flexibility and liquidity that can indirectly support the retirement of existing debt, but not directly [43]

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][24] - 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 a $107.3 million unrealized gain related to fair value accounting adjustments on ETH holdings [25][12] - As of September 30, 2025, the company held 580,841 ETH with a net fair value of $2.4 billion and 236,906 LsETH valued at $622.7 million [23] Business Line Data and Key Metrics Changes - The affiliate marketing segment generated approximately $570,000 in revenue for Q3 2025, down from $882,000 in Q3 2024, while the consolidated net loss from continuing operations improved to approximately $1,800 from a loss of $781,000 in the prior year [22] Market Data and Key Metrics Changes - The company has seen a significant increase in institutional adoption of Ethereum, with major financial institutions and governments recognizing the potential of digital assets and decentralized finance [5][12] - Ethereum continues to dominate the stablecoin market, with over 60% of stablecoin activity occurring on its platform, and it holds a significant share of tokenized real-world assets [58] Company Strategy and Development Direction - SharpLink is focused on maximizing value creation through its Ethereum treasury strategy, having staked nearly 100% of its ETH and planning to deploy $200 million of ETH onto the Linea Layer 2 platform [15][24] - The company aims to capitalize on the institutional adoption supercycle and is building a team with significant expertise to navigate the evolving landscape of digital assets [13][21] Management's Comments on Operating Environment and Future Outlook - Management highlighted a major inflection point for institutional adoption of digital assets, driven by regulatory clarity and the recognition of stablecoins' efficiency in value transfer [12][18] - The upcoming Fusaka upgrade in December 2025 is expected to enhance Ethereum's scalability and transaction throughput, further supporting institutional adoption [9][56] Other Important Information - SharpLink's share price has experienced volatility due to its exposure to ETH, but the company has doubled its ETH per share concentration from 2.0 to 4.0 since launching its treasury strategy [17][18] - The company raised $76.5 million through a registered direct offering, reflecting strong institutional confidence in its strategy [19][20] Q&A Session Summary Question: What attributes are driving demand for Ethereum partnerships? - Institutions recognize digital assets as crucial technology, and Ethereum's scalability and interoperability are key factors driving demand [30][31] Question: How does SharpLink view the percentage of ETH to be staked versus applied for yield? - The company has been staking nearly 100% of its ETH and focuses on risk-adjusted yield opportunities without providing specific yield guidance [34][35] Question: What is the current multiple to NAV and what initiatives are being considered? - The company is exploring various capital-raising strategies, including share buybacks and innovative fundraising opportunities, to enhance shareholder value [52][54] Question: How does Ethereum maintain its leading position against competitors like Solana? - Ethereum's long-standing reliability, significant stablecoin activity, and upcoming upgrades are expected to preserve its competitive edge [56][60] Question: What is the expected inflation rate of Ethereum's token issuance? - Ethereum's expected inflation rate is below 1% annually, with the potential to become deflationary as network activity increases [70][71]

Financial Data and Key Metrics Changes - The company reported 25 consecutive quarters of profitability, with Q4 being the strongest quarter despite slight revenue decline due to housing headwinds [4][6] - Year-end net income was slightly below expectations at approximately $12.5 million, primarily due to deferred revenue from land development [10][8] - Earnings per share exceeded forecasts, driven by stronger-than-expected oil and gas royalty income [8][9] Business Line Data and Key Metrics Changes - The water utility segment showed growth with over 1,600 commercial connection points, contributing to recurring revenue [11][12] - Land development faced challenges with sales being off expectations due to housing market headwinds, but phase 2C delivered as planned [18][19] - Single-family rental segment is expected to see substantial growth in 2026, with 40 homes under contract and a strong rental market [29][30] Market Data and Key Metrics Changes - The housing market in Denver is experiencing affordability challenges, impacting sales but the company remains resilient due to its focus on entry-level price points [54][55] - The company is positioned well in the market, with a competitive advantage in delivering affordable homes compared to other developers [65] Company Strategy and Development Direction - The company emphasizes flexibility in its business model to adapt to changing market dynamics, allowing for adjustments in delivery based on customer needs [5] - Future growth is anticipated from both the water utility and single-family rental segments, with plans to increase the number of rental units significantly [37][45] - The company is focused on land acquisitions that enhance its water portfolio, maintaining a strong balance sheet while exploring commercial opportunities [57][59] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in the housing market but expressed optimism about the company's ability to navigate these challenges due to its strategic positioning [54][55] - The outlook for 2026 includes expectations of continued growth in recurring revenue from both water customers and single-family rentals [37][38] - The company is preparing for significant land development revenue growth in 2028 with the completion of an interchange project [41][42] Other Important Information - The company maintains a strong liquidity position and continues to reinvest in its assets while being conservative in capital allocation due to market conditions [33][35] - The water utility segment is projected to grow significantly, with plans to serve up to 5,000 total connections in the long term [44] Q&A Session Summary Question: Has housing sales in your area slowed down due to affordability? - Management indicated that while Denver faces affordability challenges, the company benefits from focusing on entry-level price points, which helps maintain resilience in the market [54][55] Question: What is the status of land acquisitions and commercial developments? - Management confirmed ongoing discussions for land acquisitions and expressed optimism about potential commercial partnerships, emphasizing the importance of timing and value in these transactions [57][59]

Financial Data and Key Metrics Changes - The company reported Q3 2025 revenues of $10,100,000, representing a more than six-fold increase year-over-year and nearly 60% sequential growth from Q2 2025 [12][27] - Gross profit for Q3 2025 was $2,600,000, yielding a gross margin of 26%, compared to a gross profit of $50,000 in Q3 2024 [28] - Operating expenses increased to $18,100,000 in 2025 from $8,700,000 in 2024, primarily due to higher personnel costs [28][29] - Cash as of September 30, 2025, was $433,000,000, up from $30,000,000 a year earlier [29][32] - Shareholders' equity increased to $487,200,000 as of September 30, 2025, compared to $16,600,000 a year prior [32] Business Line Data and Key Metrics Changes - The OAS business unit generated $10,000,000 in revenue for Q3 2025, up from $1,000,000 in the same quarter last year, driven by deliveries of Iron Drone and Optimus systems [27][45] - The consolidated backlog grew to $23,300,000, more than double the beginning of the year, and over $40,000,000 when including pending acquisitions [13][45] Market Data and Key Metrics Changes - The company is positioned to benefit from a major counter UAS boom, with strong market demand for autonomous and unmanned systems [10][12] - The global demand for counter drone technologies is projected to grow from approximately $2,400,000,000 in 2024 to over $10,500,000,000 by 2030, representing a 27% compound annual growth rate [66] Company Strategy and Development Direction - The company is transitioning from standalone technology platforms to a system of systems model, integrating air, ground sensing, and communications into an autonomous ecosystem [15][21] - A strategic growth plan was laid out in July 2025, focusing on scaling operations and leveraging advancements in autonomy and unmanned systems [10][11] - The establishment of ONDEST Capital aims to scale combat-proven unmanned technologies into production and commercialization [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for continued record growth through 2025 and into 2026, supported by a strong balance sheet and strategic acquisitions [17][72] - The company raised its full-year 2025 revenue target to at least $36,000,000, with expectations for Q4 revenue exceeding $15,000,000 [13][73] - The outlook for 2026 is set at a minimum of $110,000,000 in revenue, which may be conservative given the expanding customer base and backlog [73] Other Important Information - The company completed multiple strategic acquisitions, enhancing its operational capabilities and expanding its technology portfolio [20][52] - The partnership with SentriX is expected to enhance the company's counter UAS capabilities significantly [58][66] Q&A Session Summary Question: What is the outlook for the company's growth in 2026? - The company is targeting at least $110,000,000 in revenue for 2026, with expectations that this number may prove conservative due to an expanding customer base and backlog [73] Question: How is the company addressing the growing demand for counter drone technologies? - The company is well-positioned to capture a significant share of the rapidly expanding counter drone market, with a comprehensive solution that integrates various technologies [66][69]

Financial Data and Key Metrics Changes - Fiscal fourth quarter 2025 revenue increased 22% to $460 million compared to $378 million in the prior year period [10] - Full-year 2025 total revenue increased 6% to $1.9 billion, driven by a slight increase in units and higher average selling prices [12] - Net loss for fiscal year 2025 was $116 million, or $7.22 per diluted share, compared to a net loss of $6.39 per diluted share in the prior year [15] - Adjusted EBITDA for fiscal year 2025 was $70 million, with adjusted diluted earnings per share of $0.44 [15] Business Line Data and Key Metrics Changes - New boat sales in Q4 increased 27% to $275 million, while pre-owned sales increased 25% to $91 million [10] - Same-store sales for the year grew by 6%, outperforming the industry which saw a decline of over 13% [12] - Revenue from service parts and other sales for the quarter increased 7% to $81 million [10] Market Data and Key Metrics Changes - The company experienced a 6% same-store sales growth for the year, outperforming broader industry trends [4] - Inventory levels decreased to $540 million from $591 million in the prior year, reflecting strategic inventory positioning [15] Company Strategy and Development Direction - The company completed a strategic exit from discontinued brands to focus on high-performing brands, which is expected to improve margins in the long term [5] - The company aims to maintain a disciplined approach to inventory and cost management to adapt to market conditions [17] - The outlook for 2026 anticipates flat same-store sales, with total sales expected to range from $1.83 billion to $1.93 billion [16] Management's Comments on Operating Environment and Future Outlook - Management noted that industry conditions remain challenging, with retail demand normalizing from pandemic highs and increased promotional activity [4] - There are positive signs of improved channel inventories and normalizing OEM production, which could support demand and growth [6] - Management expressed cautious optimism for 2026, expecting demand to fluctuate with traditional seasonal cycles [16] Other Important Information - The company exited the year with the cleanest inventory levels seen in years, providing a competitive advantage [5] - The company has a total liquidity of over $67 million, including cash and credit facilities [15] Q&A Session Summary Question: Can you quantify the change in inventory year over year? - The company reported a decrease of approximately 8.5%, or $50 million, year over year [19] Question: What is the right assumption for inventory for fiscal 2026? - Inventory is expected to increase modestly due to price increases, with a headwind of around 5% from exiting brands [20] Question: What is the outlook for interest rate expenses in 2026? - Interest rate expenses are expected to be flattish to slightly up for floor plan interest, while term interest should decrease [22] Question: Have consumer rates started to come down in a meaningful way? - Consumer rates have started to decrease, contributing to positive sales momentum [26] Question: How much were sales up at the Fort Lauderdale boat show? - Sales were nearly up 20% compared to last year at the Fort Lauderdale boat show [29] Question: How do you see the promotional environment playing out in fiscal 2026? - The promotional environment is expected to remain stable until manufacturers increase production [35] Question: What is the current dynamic regarding trade-ins for pre-owned boats? - There has been an increase in trade-ins as consumers are opting to sell through dealerships rather than independently [40] Question: What is the company's approach to M&A in the current environment? - The company is focused on being disciplined regarding debt and is taking a methodical approach to potential M&A opportunities [42]

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 [12] - 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% [13] - 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 for the same period last year [15] - 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 [15] Business Line Data and Key Metrics Changes - Product revenue was $94.1 million, flat compared to the same period last year, with system revenue at $32.1 million, up from $31.7 million [12] - Service revenue was $42.9 million, down from $45.9 million in the same period last year, with customer support revenue at $29.3 million, compared to $31 million last year [12][13] - Hardware sales saw a year-over-year increase, particularly in aerospace and defense, with notable purchases from major industry players [6][8] Market Data and Key Metrics Changes - The aerospace and defense sectors showed strong performance, with significant customer purchases from companies like Boeing and Honeywell [6][8] - The company participated in Trident Warrior 25, showcasing its advanced manufacturing capabilities for military applications [7] - The dental vertical is being strategically enhanced with new leadership and product offerings, indicating growth potential in this market [10] Company Strategy and Development Direction - The long-term strategy focuses on trends reshaping manufacturing, including supply chain localization and sustainability goals [5] - The company aims to leverage its technology to mitigate supply chain risks and address geopolitical issues, reinforcing its strategic value proposition [5] - Investments in high-value verticals such as aerospace, defense, and dental are prioritized to drive growth and scale [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges and emphasized the importance of operational excellence and customer partnerships [4][5] - The outlook for 2025 includes expectations for revenue between $550 million and $560 million, with non-GAAP gross margin ranging from 46.7% to 47% [17] - Management highlighted the potential for improved gross margins in Q4 2025 due to implemented price increases [22] Other Important Information - The company ended the quarter with $255 million in cash and no debt, positioning itself well for future opportunities [16] - A non-cash impairment charge of $33.9 million related to an investment in Ultimaker contributed to the larger GAAP net loss [15] Q&A Session Summary Question: Can you talk about the gross margin trajectory? - Management anticipates improvement in gross margin starting in Q4 2025, with the full impact of price increases expected [21][22] Question: Are there significant opportunities with the social media AI company? - Management confirmed a clear strategy focused on manufacturing, with expectations for growth in aerospace, defense, and tooling applications [23][24] 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 [27][28] Question: What is the outlook for consumables revenue? - Management indicated that consumables are stable, with expectations for increased consumption as focus shifts to high-end manufacturing applications [32][33] Question: What is the outlook for operating expenses? - Management expects operating expenses to trend slightly down in Q4, continuing tight cost management while investing in growth [35] Question: How does material pricing impact gross margins? - Management acknowledged that material pricing is a variable but emphasized ongoing efforts to improve material costs and differentiate offerings [36] Question: What is the potential in the dental market? - Management expressed optimism about the dental opportunity, highlighting recent leadership recruitment and strategic focus on restorative dental applications [39][40] Question: What are the prospects for future purchases from the AI social media company? - Management noted the potential for significant future purchases as the company transitions from prototyping to manufacturing [41]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported comparable sales growth of 1.3%, with a gross margin expansion of 100 basis points to 52.2% and adjusted operating margin of 9.4% [5][22] - Full year revenue reached $3.7 billion, with adjusted diluted earnings per share increasing by 12% to $1.90 [5][25] - The company generated strong cash flow from operations of $275 million, with over $50 million returned to shareholders through share repurchases [6][29] 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% [25][26] - The BSG segment saw net sales increase by 1.1% to $406 million, with comparable sales up 1.4% [27][28] - E-commerce sales for Sally US and Canada grew by 34%, while global e-commerce sales increased by 15% to $105 million [12][23] Market Data and Key Metrics Changes - The company maintained a strong margin profile, with gross margin expanding 100 basis points to 52.2% in Q4, driven by the Fuel for Growth program [22][23] - The company expects to maintain a healthy margin profile in fiscal 2026, offsetting potential cost increases through vendor partnerships and sourcing optimization [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 accelerating new growth pathways [9][21] - The Sally Ignited initiative aims to enhance the customer experience through physical and digital refreshes, category expansion, and immersive experiences [17][18] - The company plans to refresh up to 1,500 stores, with 30 completed by the end of fiscal 2025 [18][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a complex environment, highlighting resilient customer behavior and strong performance in the color category [37][56] - The company anticipates continued growth in the core color category, with additional opportunities in care, nails, and new categories like skin and spa [50][61] - Management remains cautious about the impact of government shutdowns on lower-income consumers but expects a rebound as conditions improve [56][57] Other Important Information - The company generated cumulative run rate benefits of $74 million from the Fuel for Growth program, with expectations to reach $120 million by the end of fiscal 2026 [20][25] - The company is committed to returning approximately 50% of free cash flow to shareholders through share repurchases [21][30] Q&A Session Summary Question: Key factors driving performance in Q4 - Management noted strong color performance in both segments, with marketplaces outperforming and innovation driving positive sales growth in care [32][33] Question: Consumer environment and comp guidance - Management highlighted resilient customer behavior, particularly in the color category, while noting some pressure on lower-income consumers due to government shutdowns [36][37] 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 [40][42] Question: Long-term outlook for EBIT growth - Management expressed confidence in achieving long-term EBIT growth through top-line growth drivers and continued optimization from the Fuel for Growth program [47][48] Question: Expectations for category growth - Management anticipates continued growth in color, care, and nails, with new opportunities in skin and spa and other categories [50][61]