Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $544 million, up 10% year-over-year, while full-year revenue reached $2.05 billion, exceeding initial expectations [10][11] - Recurring and other revenue for Q4 was $517 million, an 11% increase year-over-year, and for the full year, it grew 10% to $1.94 billion [10][11] - Adjusted EBITDA margin for Q4 was 43.4%, with full-year adjusted EBITDA growing 14% to $882 million, representing a margin expansion of 180 basis points [11][12] - GAAP net income for Q4 was $114 million, or $2.07 per diluted share, while full-year GAAP net income was $453 million, or $8.08 per diluted share [11][12] - Operating cash flow increased 27% year-over-year to $679 million, with a margin of 33% [13] - Free cash flow for 2025 was $404 million, up 20% year-over-year, with a free cash flow margin of approximately 20% [14] Business Line Data and Key Metrics Changes - The company launched several automated decisioning tools, enhancing its full-solution automation strategy, which contributed to strong revenue retention of 91% in 2025 [6][7] - The automation tools, such as Beti and GONE, significantly reduced payroll processing labor and time spent correcting payroll errors, showcasing the efficiency of the company's offerings [8][9] Market Data and Key Metrics Changes - The average daily balance on funds held for clients was approximately $2.8 billion in Q4 2025, up 11% year-over-year [16] - The client count grew to approximately 39,200, representing a 4% increase compared to 2024, with a notable increase in revenue from clients with over 1,000 employees [16][17] Company Strategy and Development Direction - The company aims to extend its technological lead and focus on delivering unparalleled value to clients while targeting the remaining 95% of the addressable market [10][18] - The emphasis on full-solution automation and decisioning logic is expected to drive long-term sustainable growth [10][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth potential despite a conservative revenue guidance for 2026, expecting total revenue growth of 6% to 7% [17][18] - The company is focused on improving client retention and achieving full value for clients through enhanced service and product offerings [45][64] Other Important Information - The company repurchased over 1.7 million shares for a total of $370 million in 2025, with approximately $1.1 billion remaining under its buyback authorization [15] - The board approved a quarterly dividend of $0.375 per share, payable in mid-March [15] Q&A Session Summary Question: Customer retention and guidance growth - Management acknowledged improved customer retention but noted that guidance for growth appears conservative, attributing it to macroeconomic factors and internal sales strategies [20][22] Question: Changes in sales leadership impact - Management indicated that the changes in sales leadership are focused on enhancing the value proposition and training sales personnel on new product enhancements [24][25] Question: Recurring revenue outlook - Management clarified that the guidance methodology remains consistent, with expectations for new logo additions being a significant growth driver [27][29] Question: Client behavior and decision cycles - Management reported no change in client desire to purchase products, emphasizing ongoing training and product automation as key factors [33][34] Question: Usage patterns of IWant - Management noted an 80% increase in usage of the IWant tool, contributing positively to client retention and satisfaction [35][36] Question: AI's impact on productivity - Management highlighted that AI is enhancing internal efficiencies and speeding up processing, positioning the company favorably for future growth [48][49] Question: Retention performance and sales office openings - Management confirmed that retention rates are stable, with plans to expand sales teams and open new offices to capture market opportunities [59][60]

Financial Data and Key Metrics Changes - The company reported consolidated revenue of $95.8 million for Q4 2025, representing a 17% year-over-year increase, and adjusted EBITDA of $40.6 million, up 16% year-over-year [6][11] - Net cash flow from operations was $42.6 million in Q4 2025, contributing to a total of $136.8 million for the full year [7][16] - Profit excluding non-controlling interests decreased by 31% to $24.7 million, with earnings per fully diluted common share of $9.72 compared to $14.40 in Q4 2024 [15] Business Line Data and Key Metrics Changes - Social casino revenue grew 9% year-over-year to $79.7 million, driven by the contribution from WHOW Games [7][11] - iGaming revenue from SuprNation was $16.1 million, up 78% year-over-year, with a quarterly revenue run rate that has more than doubled since the acquisition [9][10] - The payer conversion rate for social casino increased to 9.6% in Q4 2025 from 6.9% in Q4 2024, while average monthly revenue per payer decreased to $198 from $282 [13][14] Market Data and Key Metrics Changes - The overall social casino market faced growth challenges, but the company sees potential for growth outside the United States, particularly in Europe [8][9] - The company noted that WHOW Games has a higher direct-to-consumer (DTC) revenue component due to its web-based history, contributing to the overall DTC revenue exceeding 30% of total social casino revenue in Q4 [8][9] Company Strategy and Development Direction - The company aims to innovate and enhance its social casino and iGaming businesses through product improvements and marketing strategies [17] - There is a focus on increasing DTC revenue as a percentage of overall social casino revenue, with plans to optimize the business further in 2026 [9][34] - The company is evaluating potential acquisitions while maintaining a strong balance sheet and cash position [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong profits and cash flow, emphasizing the importance of disciplined investment and operational efficiency [17][24] - The company is adapting to changes in the gaming tax landscape and is mindful of maintaining a disciplined approach to marketing spend [32][48] Other Important Information - The company recognized an impairment loss on SuprNation's goodwill, amounting to approximately $8 million, despite the business's growth [15][53] - The company has a net cash position of approximately $455 million as of December 31, 2025, or about $9.19 per ADS [16] Q&A Session Summary Question: Can you bifurcate DoubleDown Casino and WHOW revenue contribution and growth? - Management indicated that both segments performed well, with WHOW Games having a high DTC mix, but they will not specifically quantify the contributions going forward [19][20] Question: What is the company's approach to AI and automation? - Management highlighted that AI is being integrated into content production, live operations, and marketing optimization to enhance efficiency and decision-making [25][24] Question: Is the moderation of customer acquisition spend at SuprNation temporary or a shift towards profitability? - Management confirmed that the moderation is a disciplined response to ROI measurements, indicating a focus on profitability while still investing in growth [30][32] Question: What is the company's strategy regarding capital returns given its cash position? - Management stated that long-term shareholder value is a priority, and while discussions about capital returns are ongoing, the focus remains on growth through acquisitions [38][39] Question: What caused the impairment charge for SuprNation? - Management explained that the impairment charge was based on third-party valuations and is a standard practice at year-end [40][53]

Financial Data and Key Metrics Changes - Q4 revenue grew by 12%, exceeding guidance, with double-digit growth in both segments and all three technologies [9] - Full-year revenue reached $11.7 billion, an 8% increase, with GAAP EPS at $12.75, up 38% from the previous year [11] - Operating cash flow for Q4 was $1.3 billion, compared to $1.1 billion in the prior year, and full-year operating cash flow was a record $2.8 billion, up 19% year-over-year [12] Business Line Data and Key Metrics Changes - In the Products and SI segment, Q4 sales increased by 11%, with operating earnings at $667 million, or 30.9% of sales, up from 30.5% in the prior year [13] - Software and Services segment saw Q4 revenue up 15%, with operating margins at 34.3%, up from 30.3% last year [16] - Full-year revenue for Software and Services was $4.4 billion, up 13%, with operating earnings at $1.4 billion, or 32.5% of sales [17] Market Data and Key Metrics Changes - North America revenue for Q4 was $2.4 billion, up 7%, while international revenue was $1 billion, up 26% [17] - Full-year international revenue was $3.3 billion, up 11%, with strong growth in both segments and double-digit growth in all three technologies [17] Company Strategy and Development Direction - The company plans to leverage its record backlog of $15.7 billion and strong demand environment for continued growth in 2026 [8] - The introduction of AI-powered Assist Suites aims to enhance public safety operations and is expected to drive recurring revenue growth [20][21] - The company is focused on expanding its product and services portfolio, particularly in the defense and unmanned systems market following the acquisition of Silvus [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for integrated mission-critical technologies, highlighting the importance of safety and security for public safety and defense customers [26] - The company anticipates continued strong cash conversion and expects approximately $3 billion in operating cash flow for 2026 [19] - Management noted that the effective tax rate for 2026 is expected to be approximately 22.5% [19] Other Important Information - The company achieved record operating cash flow and free cash flow for the year, with significant capital allocation towards acquisitions and shareholder returns [12] - The board approved an 11% increase in dividends, marking the 14th consecutive year of double-digit increases [12] Q&A Session Summary Question: Update on Silvus and its growth potential - Management reported strong performance from Silvus, raising revenue expectations for 2026 to $675 million, driven by demand in Ukraine and unmanned systems [30][31] Question: Outlook for margins in 2026 - Management expects operating margin expansion of 100 basis points in 2026, despite anticipated tariff headwinds [36][37] Question: Acceleration in the command business and outlook for the 911 market - The command center business saw 15% growth last year, with expectations for similar growth this year, supported by the uptake of APX NEXT applications [44] Question: Insights on the Assist Suites and future product introductions - Management indicated a rapid cadence of new product launches, with plans to expand capabilities within the dispatcher and responder suites [67][70] Question: Silvus's potential in public safety and commercial markets - Management acknowledged that while Silvus primarily focuses on defense, there are incremental opportunities in public safety and commercial markets [75]

Financial Data and Key Metrics Changes - Revenue for Q2 fiscal 2026 increased 120% to $16.4 million compared to $7.4 million in the same year-ago quarter [25] - Gross profit increased 212% to $6 million, representing 37% of total revenues, up from 26% in the prior year [25] - Net loss for Q2 fiscal 2026 totaled $9.4 million, compared to $2.6 million in the same year-ago quarter [28] Business Line Data and Key Metrics Changes - Sales of infrared components were $5 million (31% of revenue), visible components were $3.4 million (21%), assemblies and modules were $7.2 million (44%), and engineering services were $0.7 million (4%) [25] - The increase in gross margin was primarily driven by higher revenue from assemblies and modules, which generally have higher margins [26] Market Data and Key Metrics Changes - Significant revenue growth attributed to NATO spending in defense in Europe and Israel, with some G5 shipments to Europe [37][38] - The backlog totaled $97.8 million, indicating strong future revenue potential [30] Company Strategy and Development Direction - The company has transitioned to a vertically integrated provider of high-value infrared optics and camera systems, focusing on proprietary materials and complete imaging solutions [3][4] - The acquisition of Amorphous Materials is expected to enhance production capabilities and capacity, allowing for larger diameter optics [6][8] - The company aims to capture significant market share within a three to four-year window, leveraging its unique technology and supply chain advantages [16][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position as a supplier of choice for mission-critical defense and aerospace applications, particularly in light of the NDAA requirements [4][19] - The company is focused on executing its growth plan, which includes investments in existing and new business opportunities [31][32] - Management noted that while there are significant opportunities, the development of satellite programs will take time, with government contracts expected to materialize in the next two years [12][13] Other Important Information - The company completed a secondary capital raise of $60 million, which will be used for strategic investments and growth initiatives [15] - The company is not burning cash in operations and is focused on revenue-generating activities [30] Q&A Session Summary Question: Was the increase in sales to Europe due to NATO spending? - Yes, the increase is attributed to NATO spending in defense in Europe and Israel, with some G5 shipments included [37][38] Question: Are there plans to build lenses for optical intersatellite links? - Yes, the company already has a good business in free space optical communication between satellites and is looking to increase capacity [41] Question: Can you elaborate on the three-year window for capturing market share? - The company has a unique position due to current differentiators and aims to capture significant market share before competitors catch up with germanium supply [49][50] Question: What are the main constraints in terms of resources? - The main constraints are in capacity and product development, particularly in glass production and assembly [51][52] Question: What is the timeline for converting cameras to Black Diamond? - The goal is to complete the conversion of all relevant cameras by autumn of this year [55]

Financial Data and Key Metrics Changes - Revenue in Q4 was $1.66 billion, up 66% year-over-year, driven by technology advancements and seasonal strength [12] - Adjusted EBITDA was $1.4 billion, up 82% year-over-year, representing an 84% margin, with margins expanding over 700 basis points from the same period last year [12][14] - Free Cash Flow for the quarter was $1.31 billion, an 88% increase year-over-year, growing the cash balance to $2.5 billion [14][15] - For the full year, revenue reached $5.48 billion, growing 70% year-over-year, with Adjusted EBITDA at $4.51 billion, up 87% year-over-year [14] Business Line Data and Key Metrics Changes - The e-commerce initiative is performing well, with significant increases in spend from existing customers and new customers coming in from the referral program [20][21] - The self-service platform for e-commerce was launched, allowing smaller businesses to participate without high minimum GMV requirements [48] Market Data and Key Metrics Changes - The MAX auction is critical for the ecosystem, with increased competition leading to improved economics for publishers [7][8] - The gaming market is expected to continue growing rapidly, with strong performance from competitors like Unity and Liftoff [102] Company Strategy and Development Direction - The company focuses on leveraging AI to enhance its platform and improve monetization for publishers [5][9] - The strategy includes helping smaller businesses scale, similar to how the company supported indie gaming developers [50] - The company aims to maintain its competitive edge through continuous innovation and strong advertising solutions [62][84] Management's Comments on Operating Environment and Future Outlook - Management acknowledges market volatility but emphasizes strong internal performance and growth potential [5][11] - The company is optimistic about future growth, expecting sequential revenue growth in Q1 2026 between $1.745 billion and $1.775 billion [16] Other Important Information - The company repurchased approximately 800,000 shares for $482 million in Q4, with a total of 6.4 million shares repurchased for $2.58 billion in the full year [15] - The company has a remaining share repurchase authorization of approximately $3.28 billion [15] Q&A Session Summary Question: E-commerce opportunity and self-service launch - Management noted that the e-commerce business is performing well, with significant increases in spend from existing customers and new customers from the referral program [20][21] Question: Automation of ad creatives - Management indicated that they are still early in the automation process but are piloting generative AI tools to help customers create ads more efficiently [26][27] Question: Black box nature of the model - Management acknowledged the challenges in providing clear metrics but emphasized the potential for growth as they open the platform to more advertisers [33][35] Question: Impact of AI on the business - Management believes that AI will lower content creation costs, leading to an explosion of content, which will enhance the value of their discovery platform [43][44] Question: Changes in customer types due to self-service - Management confirmed that the self-service launch has allowed smaller businesses to enter the platform, leading to direct performance tracking and growth [48][49] Question: Marketing investment and growth expectations - Management is cautious about ramping up marketing until they have the necessary tools in place, but they are optimistic about future growth based on current metrics [67][69]

Financial Data and Key Metrics Changes - The company ended 2025 with a cash balance of $91 million and a drawn debt of $16 million related to the construction of the Sturt Plateau Compression Facility (SPCF) [7][16] - Since the end of the year, Tamboran received $32 million from a PIPE transaction and expects an additional $15 million from an acreage sale to DWE [7][16] Business Line Data and Key Metrics Changes - The second quarter of fiscal 2026 saw the completion of the largest stimulation program in the Beetaloo Basin, achieving 58 stages across a 10,009-foot horizontal section [4] - Construction of the SPCF is approximately 80% complete, with key contracts awarded for electrical work, remaining on budget and on track for first gas in the third quarter of 2026 [5][14] Market Data and Key Metrics Changes - The Beetaloo Basin is connected to three attractive gas markets: the NT local gas market, the Australian East Coast gas network, and the Asia LNG market, which is the largest growing demand center for gas globally [9] - Initial flow rates from well results indicate a comparison to the Marcellus Shale in the U.S., with the Velkerri B showing distinct characteristics [8] Company Strategy and Development Direction - The company aims to deliver significant production growth in 2026, focusing on stimulating three remaining wells and completing the SPCF construction [10][11] - Plans include drilling two backfill wells to mitigate risks and ensure gas supply, as well as participating in two commitment wells with Santos to delineate additional resources [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of the Beetaloo Basin as a world-class unconventional gas project, emphasizing the importance of collaboration with stakeholders [3][9] - The company is focused on drilling great wells and learning from every data point to build the investment rationale for large pipelines to transport gas [22][56] Other Important Information - The company is nearing completion of the acquisition of subsidiaries of Falcon Oil and Gas, which will consolidate its interest across the Beetaloo Basin [10] - The farm-out process is ongoing, with credible parties interested, although specific details were not disclosed due to commercial sensitivity [7][36] Q&A Session Summary Question: Background and Opportunities at Tamboran - The CEO discussed his experience in U.S. shale operations and the importance of drilling great wells in the Beetaloo Basin [19][21] Question: Resource Assessment and Well Locations - The CEO clarified that there is no change in strategy, focusing on the Mid-Velkerri B Shale and drilling great wells [25] Question: Soak Period Decision for Well 6H - The CEO explained the decision to extend the soak period to 60 days for consistency with previous wells [35] Question: Expansion of Sturt Plateau Compression and Pipeline - The CEO indicated a strong market for gas sales and the potential for pipeline expansion to support increased production [46] Question: Local Sand Solution Testing - The CEO expressed optimism about local sand lab results and the intention to test it in upcoming wells [51] Question: Operational Cadence and Production Maintenance - The CEO noted that the focus will be on the pilot project, with timelines to be clarified as operations progress [52] Question: Stakeholder Engagement and Government Support - Management highlighted strong support from the government and local communities for the development of the Beetaloo Basin [71][73]

Financial Data and Key Metrics Changes - GAAP operating expenses for Q4 2025 were $110.5 million, and the GAAP net loss was $100.1 million. For the full year 2025, operating expenses totaled $472.6 million, with a net loss of $435.1 million [11] - Adjusted EBITDA loss for Q4 was $63.3 million, aligning with expectations, while the full-year loss was $252.3 million, within guidance [11] - The company ended 2025 with $970.8 million in liquidity, maintaining a strong balance sheet for future operations [13] Business Line Data and Key Metrics Changes - Customer billings for full-year 2025 were $19.5 million, marking the first billings issued by the company [12] - The Eagle Line, a pilot cell production line, was installed to support scalable production and customer sampling [6][7] Market Data and Key Metrics Changes - The automotive market remains the core focus, with significant interest in solid-state batteries from various automotive OEMs [17][20] - The company aims to expand into new high-value markets, including data centers and robotics, leveraging its solid-state technology [8][34] Company Strategy and Development Direction - The company successfully integrated the Cobra process into its production baseline, enabling gigawatt-hour scale production [4] - Goals for 2026 include demonstrating scalable production with the Eagle Line, advancing automotive commercialization, and expanding into new markets [6][7][8] - The company emphasizes a capital-light business model, focusing on licensing and partnerships rather than heavy capital investments [59][80] Management's Comments on Operating Environment and Future Outlook - Management views the current challenges in technology and supply chains as opportunities for growth, positioning the company to offer innovative energy storage solutions [9][10] - The long-term trend towards electrification in the automotive sector is expected to continue, with solid-state batteries playing a crucial role [17][20] Other Important Information - The company expressed gratitude to Professor Dr. Fritz Prinz for his service on the board, highlighting the importance of leadership during a transformative period [10] - The Eagle Line serves as a blueprint for production, allowing customization for different customer needs while maintaining a scalable approach [15][96] Q&A Session Summary Question: Significance of the Eagle Line inauguration - The Eagle Line is crucial for demonstrating scalable production and serves as a platform for technology commercialization [14] Question: Opportunities beyond automotive - Automotive customers remain the core focus, but the company is exploring applications in data centers and robotics due to the versatility of its technology [17][34] Question: 2025 performance assessment - 2025 was characterized as a strong year with a 10% year-over-year improvement in Adjusted EBITDA loss, reflecting a focus on cost efficiency [20] Question: Conditional cash inflows change - The change in conditional cash inflows from $261 million to $150 million reflects a more conservative view of billings and development payments [49][61] Question: Impact of Volkswagen's funding cuts - The relationship with PowerCo remains strong, and the company continues to work on agreed-upon scopes without disruption [54][56] Question: Scaling different form factors for new markets - The licensing model allows for flexibility in scaling different form factors without heavy capital investment, adapting to customer needs [59][96]

Financial Data and Key Metrics Changes - Fourth quarter 2025 revenue totaled $1 million, reflecting a 25% sequential increase from the third quarter [18] - Fiscal year 2025 adjusted revenue was $4 million, including pilot revenue earned before the commercial launch [19] - Fourth quarter operating loss was $238 million, with R&D costs at $155 million and SG&A at $30 million [19] - The company ended the year with nearly $1.5 billion in cash and short-term investments [20] - Revenue expectations for 2026 are projected to be between $14 million and $16 million, representing a 400% year-over-year increase at the midpoint [21] Business Line Data and Key Metrics Changes - The Aurora Driver achieved a record number of commercial miles driven during the fourth quarter, contributing to revenue growth [18] - The company plans to exit 2026 with over 200 driverless trucks in operation, translating to approximately $80 million in revenue on a run-rate basis [21] Market Data and Key Metrics Changes - The company has expanded its operational domain significantly, with the Aurora Driver now capable of operating in inclement weather, which previously constrained operations about 40% of the time [8][9] - The launch of supervised autonomous freight delivery supports multiple customer sites, indicating a growing market presence [11] Company Strategy and Development Direction - The company aims to fundamentally improve safety and restructure the economics of the logistics industry through its driverless technology [7] - Plans for 2026 include scaling driverless operations and transitioning to a driver-as-a-service business model in 2027 [12][13] - The company is focused on executing strategic investments necessary to scale and extend its leadership position in autonomous trucking [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving significant revenue growth in 2026, driven by the scaling of driverless operations [21] - The company anticipates a strong demand for its services, with customer interest supporting a pipeline of thousands of trucks [13][71] - Management highlighted the importance of customer demand in driving the expansion of operational lanes and capabilities [40][74] Other Important Information - The company has made significant progress in its partnerships with OEMs, including Volvo and PACCAR, to support the production of autonomous trucks [14][15] - The second-generation commercial hardware kit is expected to reduce hardware costs by over 50% [21][36] Q&A Session Summary Question: Clarification on end-of-year truck guidance and revenue expectations - Management indicated that revenue will be back-end loaded, with significant growth expected in the second half of 2026 as the fleet launches in Q2 [24] Question: Timeline for serial commercial production - Management described serial production as a gradual increase in driverless miles and revenue, with expectations for incremental volume in 2027 [26][28] Question: Details on the target for more than 200 trucks by year-end - Management confirmed that the target refers to fully driverless trucks without an observer, emphasizing the importance of scaling operations [30][31] Question: Improvement in driver hardware costs - Management explained that cost reductions stem from design improvements, scale efficiencies, and advancements in technology [34][36] Question: Customer interest and sales process - Management highlighted strong customer interest and the ability to respond quickly to demand, exemplified by the Detmar agreement [39][40] Question: Composition of trucks and OEM partnerships - Management expressed confidence in achieving the target of 200 trucks, with a mix of vehicles from various OEM partners [64][65] Question: Visibility into 2027 plans and potential risks - Management reassured that partnerships and production plans are on track, with a focus on scaling operations effectively [66][67]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $724 million, representing a 2% year-over-year increase, with a 7% growth in non-respiratory revenue excluding donor screening [7][18] - Full year revenue reached $2.73 billion, achieving the company's financial guidance for 2025, with non-respiratory revenue growing 5% [7][18] - Adjusted EBITDA margin was 22%, reflecting a 240 basis point improvement over the prior year [8][22] - Adjusted diluted EPS was $0.46 in Q4 and $2.12 for the full year, indicating a 15% year-over-year growth [22] Business Line Data and Key Metrics Changes - Labs business reported a strong growth of 7% in Q4 and 6% for the full year, accounting for 55% of total company revenue [7][18] - Immunohematology business grew 3% for the full year, maintaining its leading global market position [18] - Triage business saw a revenue increase of 16% in Q4 and 7% for the full year [18] - Respiratory revenue declined 14% in Q4 and 20% for the full year due to lower COVID testing [18] Market Data and Key Metrics Changes - North America region revenue was up 4% in Q4 but down 2% for the year, excluding donor screening [20] - Europe, Middle East, and Africa showed flat growth for the quarter and 4% growth for the year, with a significant increase in Adjusted EBITDA margins by over 900 basis points [20] - Latin America experienced a 17% increase in Q4 and 18% for the year, while Japan and Asia-Pacific grew 4% in Q4 and 6% for the year [20] - China grew 5% in Q4 and 3% for the full year [21] Company Strategy and Development Direction - The company established three priorities: customer-centric operations, strengthening operational and financial performance, and accelerating product development for long-term growth [6] - The focus is on optimizing the customer experience and driving effective execution across all business dimensions [9] - The company aims to maximize value by delivering superior outcomes for customers and converting that value into attractive returns for shareholders [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain growth, citing strong market positions and high renewal rates [35] - The company anticipates continued growth in the Labs business and is optimistic about new product launches in 2026 [14][25] - Management acknowledged challenges in cash flow conversion but emphasized ongoing efforts to improve cash flow metrics [31][88] Other Important Information - A significant non-cash goodwill impairment charge of $701 million was recorded in Q3, which does not impact cash or operations [8][22] - Joe Busky, CFO, announced his retirement effective June 2026, with a search for his successor already initiated [9][10] Q&A Session Summary Question: Free cash flow guidance and timing issues - Joe Busky explained that Q4 cash flow was lower than expected due to timing issues with accounts receivable and late revenue collection [30][31] Question: Sustainability of lab growth trends - Brian Blaser highlighted strong underlying growth rates across the business and emphasized opportunities in immunoassay and low market penetration [33][35] Question: China market updates - Management provided updates on potential nationalized value-based procurement programs but noted no new developments [40][41] Question: Gross margin performance - Joe Busky discussed factors affecting gross margins, including tariffs and product mix, and projected flat margins for 2026 [67][68] Question: Lex Diagnostics platform timeline - Jonathan Siegrist confirmed that the FDA review process for the Lex platform is progressing as planned, with no current issues [72] Question: R&D pipeline and product launches - Management indicated a focus on expanding the product portfolio and enhancing offerings in both domestic and international markets [76][78]

Financial Data and Key Metrics Changes - Fourth quarter 2025 revenue totaled $1 million, reflecting a 25% sequential increase from the third quarter [18] - Total year-adjusted revenue for fiscal year 2025 was $4 million, including pilot revenue earned in the first quarter [19] - Fourth quarter operating loss was $238 million, with R&D costs at $155 million and SG&A at $30 million [19] - The company ended the year with nearly $1.5 billion in cash and short-term investments, indicating a strong balance sheet [20] - Revenue for 2026 is projected to be between $14 million and $16 million, representing a 400% year-over-year increase at the midpoint [21] Business Line Data and Key Metrics Changes - The Aurora Driver achieved a record number of commercial miles driven during the fourth quarter, contributing to revenue growth [18] - The company plans to exit 2026 with over 200 driverless trucks in operation, translating to approximately $80 million in revenue on a run-rate basis [21] Market Data and Key Metrics Changes - The company has expanded its operational domain significantly, with the Aurora Driver now capable of operating in inclement weather, which previously constrained operations about 40% of the time [8][9] - The launch of supervised autonomous freight delivery supports multiple customer sites, indicating a growing market presence [11] Company Strategy and Development Direction - The company aims to fundamentally improve safety and restructure the economics of the logistics industry through its driverless technology [7] - Plans for 2026 include scaling operations and transitioning to a driver-as-a-service business model in 2027, with a strong pipeline of customer interest [12][13] - The company is focused on executing strategic investments necessary to scale and extend its leadership position in autonomous trucking [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to scale operations and meet customer demand, emphasizing the importance of customer-driven lane expansions [40][71] - The company anticipates that 2026 will mark a significant inflection point for the market, with self-driving trucks becoming a permanent fixture in transportation [17] - Management highlighted the importance of maintaining fiscal discipline and the expectation of achieving positive free cash flow by 2028 [22][49] Other Important Information - The company has made significant advancements in its hardware technology, with expectations of a 50% reduction in hardware costs with the second-generation commercial kit [21][36] - The partnership with Volvo has entered the industrialization phase, which is crucial for scaling production [15] Q&A Session Summary Question: Clarification on end-of-year truck guidance and revenue expectations - Management indicated that revenue will be back-end loaded, with significant growth expected in the second half of 2026 as the fleet launches [24] Question: Timeline for serial commercial production in 2027 - Management described serial production as a gradual increase in driverless miles and revenue, with expectations of adding other platforms in 2027 [26][28] Question: Details on the target for more than 200 trucks by year-end - Management confirmed that the target includes fully driverless trucks without an observer, emphasizing the importance of scaling operations [30][31] Question: Insights on the 50% improvement in driver hardware costs - Management explained that cost reductions stem from design improvements and partnerships that enhance manufacturing efficiency [34][36] Question: Customer interest and sales process for new functionality - Management noted strong customer interest and the ability to respond quickly to demand, exemplified by the Detmar agreement [39] Question: Composition of trucks and supply chain readiness - Management expressed confidence in achieving the 200+ truck objective, with ongoing partnerships ensuring supply chain readiness [65] Question: Visibility into achieving the 2027 plan - Management highlighted the critical steps taken with partners to ensure readiness for the 2027 production goals [67]