Financial Data and Key Metrics Changes - The company reported Q1 revenue of $14 million, rebounding from $12.4 million in Q4, indicating a recovery from previous softness [3][7] - Year-over-year revenue comparison appears flat, but the company views this quarter as a return to stability and the start of renewed momentum [8] - GAAP loss from operations was $0.5 million compared to income of $1.3 million in the same quarter last year, with adjusted EBITDA slightly positive at $60,000 [8][11] Business Line Data and Key Metrics Changes - Research services contributed $13.7 million to revenue, while the data business provided the remainder [7] - Gross margin decreased to 43% from 50% year-over-year, primarily due to increased outsourced lab service costs [8] - Operating expenses rose to $6 million, with intentional increases in R&D and sales and marketing to support the data business [9] Market Data and Key Metrics Changes - Customer cancellations are down, and bookings to revenue conversion has increased, indicating improved customer relationships [4] - The macro environment remains challenging, but there are signs of improvement in biotech funding and R&D budgets [3][20] Company Strategy and Development Direction - The company is focused on driving value opportunities in Corellia and its data business while expanding its TOS platform [3] - The radiopharmaceutical services platform is being enhanced with new infrastructure and capabilities, aiming to reduce costs and improve gross margins [4] - The data platform is gaining momentum, with three consecutive quarters of data sales since the first licensing deal [4] Management Comments on Operating Environment and Future Outlook - Management expresses cautious optimism about improving market conditions, although they do not expect a rapid recovery [20] - The company anticipates sequential revenue growth and margin expansion as they bring more work in-house [11] - There is confidence in the long-term potential of the data business and Corellia, despite current funding challenges in biotech [5][11] Other Important Information - The company ended Q1 with $10.3 million in cash, remaining debt-free, which provides flexibility for future investments [10] - Management plans to continue updating stakeholders on progress in the next earnings call scheduled for mid-December [32] Q&A Session Summary Question: Any changes in the strategy on the data licensing business? - Management confirmed there are no changes to the strategy, emphasizing early wins and potential in the data business [14] Question: How would you characterize the size of the opportunity in the data business? - Management stated it is still early to predict the exact size and success of the opportunity, but there is significant interest [15] Question: What frameworks are being considered for structuring deals with Corellia? - Management indicated they are looking for external partners and funding to support Corellia's advancement [16] Question: Can you provide insights on the broader investment landscape? - Management noted it remains a tough environment but sees signs of improvement and feels well-positioned to capitalize on opportunities [20] Question: Will the stabilization period be more in the first half of the year? - Management believes Q1 may have been the low point for the fiscal year, with expectations for gradual revenue growth [24] Question: Any color on Q2 revenue compared to last year? - Management refrained from providing specific guidance but anticipates revenue will increase on a quarterly basis [28]

Financial Data and Key Metrics Changes - For the fiscal year ended June 30, 2025, the company reported adjusted EBITDA of $38.8 million, an increase of $7.6 million or 24.4% compared to the prior year, primarily driven by acquisition efforts [3][10] - Net income for the quarter ended June 30, 2025, was $4.9 million on revenues of $220.6 million, representing a slight increase of 2.6% in net income compared to the same quarter in the previous year [8][9] - Adjusted net income for the fiscal year was $30.9 million, up 36.6% from $22.6 million in the prior year [10] Business Line Data and Key Metrics Changes - The company completed three Greenfield acquisitions and three strategic operating partner conversions in fiscal 2025, contributing significantly to the adjusted EBITDA growth [5][10] - Acquisitions generated $6 million in adjusted EBITDA for the year, highlighting the impact of strategic acquisitions on financial performance [3] Market Data and Key Metrics Changes - The company noted ongoing volatility in trade and tariffs affecting business operations, particularly in relation to U.S.-Mexico trade dynamics [4][12] - There is a continued shift away from China to Southeast Asia and Mexico, which the company expects to benefit from in the long term [12][33] Company Strategy and Development Direction - The company aims to deliver profitable growth through a combination of organic and acquisition initiatives while maintaining a strong balance sheet [5][10] - The recent acquisition of WePort in Mexico is seen as a strategic move to enhance the company's North American footprint and support existing customers [6][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities despite near-term volatility due to trade negotiations [4][64] - The company is focused on leveraging technology and expanding its service offerings to enhance customer relationships and drive growth [58][64] Other Important Information - The company maintains a strong balance sheet with approximately $23 million in cash and only $20 million drawn from a $200 million credit facility [5] - Management indicated that the depreciation and amortization expense has decreased due to the end of amortization related to a significant past acquisition [21][39] Q&A Session Summary Question: Impact of changing trade policy on business, especially regarding Mexico - Management noted that trade policy remains fluid, with customers navigating tariffs and supply chain adjustments, and emphasized the importance of supporting customers during this period [12][13] Question: Adjusted EBITDA performance and margin concerns - Management indicated that the lower adjusted EBITDA was due to less pull-forward activity in the current quarter compared to previous periods [16][17] Question: Capacity limitations for future acquisitions - Management stated that there are no true constraints on acquisition candidates, but integration capacity is a consideration [27][29] Question: Expectations for the upcoming peak season - Management anticipates a muted peak season due to ongoing trade uncertainties but expects continued growth in sourcing from Southeast Asia and Mexico [31][32] Question: Target leverage ratio for the balance sheet - Management indicated a normalized target leverage of approximately 2.5 times, with flexibility for temporary increases for the right transactions [37][38] Question: Overview of customer feedback and future business outlook - Management highlighted the importance of cross-selling opportunities and the positive feedback received from customers regarding new technology offerings [58][61]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $14 million, rebounding from $12.4 million in Q4 of fiscal 2025, indicating a return to growth after a challenging previous quarter [3][8] - Year-over-year revenue comparison appears flat, but the company views this quarter as a stabilization point and the beginning of renewed momentum [8] - The operating loss for Q1 was $0.5 million compared to an income of $1.3 million in the same quarter last year, with adjusted EBITDA slightly positive at $60,000 [9][12] Business Line Data and Key Metrics Changes - The research services business contributed $13.7 million to the total revenue, while the data business provided the remaining amount [8] - Gross margin decreased to 43% from 50% year-over-year, primarily due to increased outsourced lab service costs [9] - Operating expenses rose to $6 million, with intentional increases in R&D and sales and marketing to support the data business [10] Market Data and Key Metrics Changes - Customer cancellations have decreased, and bookings to revenue conversion has improved, indicating stronger customer relationships [4] - The macro environment remains challenging, but there are signs of improvement in biotech funding and R&D budgets [3][21] Company Strategy and Development Direction - The company is focused on expanding its core TOS platform and driving value opportunities in Corellia and its data business [2][3] - The radiopharmaceutical services platform is being enhanced with new infrastructure and capabilities, aiming to reduce costs and improve gross margins [4] - The company sees significant long-term opportunities in AI and machine learning for drug discovery [5] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improving market conditions, although they do not expect a rapid recovery [21] - The company anticipates sequential revenue growth and margin expansion as they bring more work in-house [12] - Management is confident in the ability to execute and deliver value for shareholders, supported by a strong balance sheet and no debt [11][12] Other Important Information - The company ended Q1 with $10.3 million in cash, reflecting a slight increase from the previous year [11] - The management team is committed to maintaining a disciplined approach to cost management while investing in growth [12] Q&A Session Summary Question: Any changes in the strategy on the data licensing business? - Management confirmed there are no changes to the strategy, emphasizing early wins and potential in the data licensing business [14][15] Question: How would you characterize the size of the opportunity in the data business? - Management stated it is still early to predict the exact size and success of the opportunity, but there is significant interest and potential [16] Question: What frameworks are being considered for Corellia? - Management indicated they are looking for external partners and funding to support Corellia's advancement [17] Question: Can you provide insights on the broader investment landscape? - Management described the environment as tough but cautiously optimistic about improving conditions and budget constraints easing [20][21] Question: Will the stabilization period extend into the second half of the year? - Management suggested that Q1 might be the low point for the fiscal year, with expectations for gradual revenue growth [24] Question: Any color on Q2 revenue compared to last year? - Management refrained from providing specific guidance but anticipates revenue will increase on a quarterly basis [28]

Financial Data and Key Metrics Changes - In Q3 2025, total revenue increased by 29% to $7.1 million compared to $5.5 million in Q3 2024 [24] - Gross profit rose to $4.8 million from $4.0 million, with a consolidated gross margin of 68.3%, down from 73.9% in the previous year [25][26] - Operating income slightly decreased to $1.38 million from $1.39 million, resulting in an operating margin of 19.5% compared to 25.4% in Q3 2024 [27][28] Business Line Data and Key Metrics Changes - The marine technology business generated $4.0 million in revenue, a 30.7% increase from $3.0 million in Q3 2024, accounting for 56.4% of total revenue [24][25] - The marine engineering business saw a revenue decline of 33.2%, down to $1.6 million from $2.4 million in Q3 2024 [24][26] - The newly acquired Precision Acoustics Ltd contributed 20.6% to net revenue, generating $1.5 million [24][25] Market Data and Key Metrics Changes - Hardware sales in the marine technology business increased by 103.6% to $2.7 million, while rental asset utilization was low, impacting gross profit margins [8][26] - Revenue from the Echoscope accounted for 57.7% of marine technology revenue, while DAVD contributed 42.3% [8] Company Strategy and Development Direction - The company is focusing on increasing market share in the defense sector for underwater imaging sensors, particularly with the Echoscope and DAVD technologies [5][6] - The launch of the NanoGen series sonars aims to address the growing demand for smaller underwater vehicles and enhance situational awareness [12][13] - The company is pursuing an M&A strategy to build a pipeline of complementary technologies, particularly in the defense sector [32][50] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the global policy environment but expressed confidence in the growth strategy and progress made in key milestones [4][31] - The company is optimistic about achieving $4 million in DAVD-related revenue for the fiscal year, a significant increase from $1.2 million the previous year [37][46] Other Important Information - The company has $26.2 million in cash and cash equivalents with no debt, reflecting a $3.7 million increase since October 2024 [28] - The marine engineering business is reliant on defense program funding, which has been delayed, affecting contract awards [9][26] Q&A Session Summary Question: Feedback on Echoscope Type Nano Gen series - Management received positive feedback regarding the reduced size and weight of the new Echoscope, which allows for integration into smaller platforms [34][35] Question: Changes in DAVD revenue target - The company expects to achieve $4 million in DAVD revenue, up from a previous target of $4.5 million, reflecting significant growth from last year's $1.2 million [36][37] Question: Exposure to China and supply chain concerns - The company has minimal exposure to China, with most components sourced from Europe, and has faced challenges in exporting to China due to government restrictions [40][41] Question: Echoscope as a revenue driver - Echoscope remains a key revenue driver, with recent sales growth attributed to hardware sales, although rental revenues have decreased due to shifts in funding for offshore renewables [42][43][44] Question: Thoughts on stock buyback program - Management indicated that stock buyback decisions are for the board to consider, focusing currently on M&A opportunities [48][50]

Financial Data and Key Metrics Changes - In Q3 2025, total revenue increased by 29% to $7.1 million from $5.5 million in Q3 2024 [24] - Gross profit rose to $4.8 million, with a consolidated gross margin of 68.3%, down from 73.9% in the previous year [25][26] - Operating income slightly decreased to $1.38 million, with an operating margin of 19.5%, compared to 25.4% in Q3 2024 [27][28] Business Line Data and Key Metrics Changes - The marine technology business generated $4.0 million in revenue, a 30.7% increase from $3.0 million in Q3 2024, accounting for 56.4% of net revenue [4][24] - The marine engineering business saw a revenue decline of 33.2%, down to $1.6 million from $2.4 million in Q3 2024 [9][24] - The newly acquired Precision Acoustics Ltd contributed 20.6% to net revenue, generating $1.5 million [10][24] Market Data and Key Metrics Changes - Hardware sales in the marine technology business increased by 103.6%, reaching $2.7 million compared to $1.3 million in Q3 2024 [8][24] - Revenue from the Echoscope accounted for 57.7% of marine technology business revenue, while DAVD contributed 42.3% [8] Company Strategy and Development Direction - The company is focusing on increasing market share in the defense sector for underwater imaging sensors, particularly with the Echoscope technology [5][6] - The launch of the NanoGen series sonars aims to address the growing demand for smaller underwater vehicles and enhance situational awareness [12][13] - The company is pursuing an M&A strategy to build a pipeline of complementary technologies, particularly for the DAVD product line [32][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving $4 million in DAVD revenue for the fiscal year, a significant increase from $1.2 million the previous year [37][46] - The company is experiencing delays in contract awards within the marine engineering business due to funding issues in defense programs [9][28] - Management highlighted the importance of the defense market for scalable growth, noting that the evaluation process for technology integration can be lengthy [44][46] Other Important Information - The company reported an increase in cash and cash equivalents to $26.2 million, with no debt [28] - The gross margin for the marine technology business decreased to 77.0% from 82.9% in the previous year, reflecting a shift in sales mix [25][26] Q&A Session Summary Question: Feedback on Echoscope Type Nano Gen series - Management received positive feedback regarding the reduced size and weight of the Echoscope, which allows for integration into smaller platforms [34][35] Question: Change in DAVD-related revenue target - The company is now targeting $4 million in DAVD revenue for the fiscal year, up from the previous target of $4.5 million [36][37] Question: Exposure to China and supply chain concerns - The company has minimal exposure to China, with most components sourced from Europe, and has faced challenges in exporting to China due to regulatory barriers [40][41] Question: Echoscope as a revenue driver - Echoscope remains a key revenue driver, with recent sales growth attributed to hardware sales, although rental revenues have declined due to shifts in funding for offshore renewables [43][44]

Financial Data and Key Metrics Changes - The company reported total revenue of $7.1 million for Q3 2025, a 29% increase from $5.5 million in Q3 2024 [26] - Gross profit for Q3 2025 was $4.8 million, compared to $4.0 million in Q3 2024, with a consolidated gross margin of 68.3% versus 73.9% in the previous year [27] - Operating income decreased slightly to $1.38 million in Q3 2025 from $1.39 million in Q3 2024, resulting in an operating margin of 19.5% compared to 25.4% [29][30] Business Line Data and Key Metrics Changes - The marine technology business generated $4.0 million in revenue, a 30.7% increase from $3.0 million in Q3 2024, accounting for 56.4% of total net revenue [4][26] - The marine engineering business saw a revenue decline of 33.2%, generating $1.6 million compared to $2.4 million in Q3 2024 [10][26] - The newly acquired Precision Acoustics Ltd contributed 20.6% to net revenue and 18% to operating income in Q3 2025 [11][26] Market Data and Key Metrics Changes - The marine technology business's hardware sales increased by 103.6% to $2.7 million, while rental assets were underutilized, impacting gross profit margins [9][27] - The company noted a decrease in hardware sales to Asia by approximately 27.9%, which affected commission costs [9] Company Strategy and Development Direction - The company is focusing on increasing market share in the defense sector for underwater imaging sensors, particularly with the Echoscope technology [6][7] - The launch of the NanoGen series sonars aims to address the growing demand for smaller underwater vehicles and platforms [15][19] - The company is pursuing an M&A strategy to enhance its capabilities and diversify its revenue streams [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the global policy environment but expressed confidence in the growth strategy and progress made in key milestones [4][32] - The company is optimistic about the potential for increased revenue from the DAVD product line, projecting $4 million in revenue for the fiscal year [38][46] Other Important Information - The company has $26.2 million in cash and cash equivalents as of July 31, 2025, with no debt, reflecting a $3.7 million increase from the previous year [30] Q&A Session Summary Question: Feedback on Echoscope Type Nano Gen series - Management received positive feedback regarding the reduced size and weight of the Echoscope Type Nano Gen series, which allows for integration into smaller platforms [35][36] Question: Changes in DAVD-related revenue target - The company is targeting $4 million in DAVD revenue for the fiscal year, a significant increase from $1.2 million last year [38] Question: Exposure to China and supply chain concerns - The company has minimal exposure to China, with most components sourced from Europe, and has faced challenges in exporting to China due to government restrictions [41][42] Question: Echoscope as a revenue driver - Echoscope remains a key revenue driver, with recent sales growth attributed to hardware sales, although rental revenues have decreased due to shifts in funding for offshore renewables [44][46] Question: Thoughts on stock buyback program - Management indicated that stock buyback decisions are for the board to consider, while focusing on M&A opportunities to enhance business value [50]

Financial Data and Key Metrics Changes - In Q3 2025, total revenue increased by 29% to $7.1 million from $5.5 million in Q3 2024 [27] - Gross profit rose to $4.8 million, with a consolidated gross margin of 68.3%, down from 73.9% in the previous year [28] - Operating income slightly decreased to $1.38 million, with an operating margin of 19.5%, compared to 25.4% in Q3 2024 [30][31] Business Line Data and Key Metrics Changes - The marine technology business generated $4.0 million in revenue, a 30.7% increase from $3.0 million in Q3 2024, accounting for 56.4% of total revenue [27][28] - The marine engineering business saw a revenue decline of 33.2%, down to $1.6 million from $2.4 million in Q3 2024 [27][28] - The newly acquired Precision Acoustics Ltd contributed 20.6% to net revenue, generating $1.5 million [27][28] Market Data and Key Metrics Changes - Hardware sales in the marine technology business increased by 103.6%, reaching $2.7 million compared to $1.3 million in Q3 2024 [9][28] - Revenue from the Echoscope accounted for 57.7% of marine technology revenue, while DAVD contributed 42.3% [9] Company Strategy and Development Direction - The company aims to increase market share in underwater imaging sensors, particularly in the defense sector, leveraging the unique capabilities of the Echoscope and DAVD technologies [6][14] - The launch of the NanoGen series sonars is expected to enhance the company's position in the defense and underwater robotics markets [18][24] - The company is focused on executing its M&A strategy to pivot the revenue model towards multi-year, multiple sales opportunities [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the global policy environment but expressed confidence in the growth trajectory, particularly in defense-related markets [4][33] - The company is optimistic about the future, citing strong interest in its technologies and ongoing trials with defense customers [14][18] Other Important Information - The company has no debt and reported $26.2 million in cash and cash equivalents as of July 31, 2025, an increase from $22.5 million at the end of the previous fiscal year [31] - The company is experiencing delays in contract awards for the marine engineering business due to funding issues in defense programs [10] Q&A Session Summary Question: Feedback on Echoscope Type Nano Gen series - Management received positive feedback regarding the reduced size and weight of the Echoscope, which allows for integration into smaller platforms [36][37] Question: Change in DAVD-related revenue target - The company expects to achieve $4 million in DAVD revenue for the fiscal year, a significant increase from $1.2 million last year [38] Question: Exposure to China and supply chain concerns - The company has minimal exposure to China, with most components sourced from Europe, and has faced challenges in exporting to China due to regulatory barriers [42][43] Question: Echoscope as a revenue driver - Echoscope remains a key revenue driver, with recent sales growth attributed to hardware sales, although rental revenues have declined due to shifts in funding for offshore renewables [45][46] Question: Thoughts on stock buyback program - Management indicated that stock buyback decisions are for the board to consider, emphasizing a focus on M&A opportunities instead [49][51]

Financial Data and Key Metrics Changes - The company reported an organic net sales decline of 11% year over year for Q4 2025, driven by lower sales in both North America and international segments [25][28] - Adjusted gross margin decreased to 20.5%, a decline of approximately 290 basis points year over year, attributed to lower volume mix, cost inflation, and higher trade spend [25][27] - Adjusted net loss was $2 million, or $0.02 per diluted share, compared to adjusted net income of $11 million, or $0.13 per diluted share in the prior year [27] - Adjusted EBITDA was $20 million, down from $40 million a year ago, with an adjusted EBITDA margin of 5.5% [27] Business Line Data and Key Metrics Changes - In North America, organic net sales declined 14% year over year, primarily due to lower sales in snacks and meal preparation products [28] - Adjusted gross margin in North America was 19.2%, a decrease of 340 basis points, with adjusted EBITDA of $10 million compared to $21 million in the prior year [28] - International organic net sales declined 6%, with adjusted gross margin at 22.1%, approximately 270 basis points below the prior year [29] Market Data and Key Metrics Changes - The snacks category saw organic net sales growth down 19% year over year, driven by velocity challenges and distribution losses [29] - The beverages category experienced a 3% decline in organic net sales, primarily due to softness in tea in North America [30] - The meal prep category's organic net sales growth was down 8%, mainly due to softness in oils and nut butters in North America [30] Company Strategy and Development Direction - The company is focused on a turnaround strategy that includes streamlining the portfolio, accelerating brand renovation and innovation, and enhancing digital capabilities [11][22] - A new regional operating model is being implemented to reduce complexity and improve decision-making speed [9][10] - The company plans to exit unprofitable or low-margin SKUs and is committed to reducing the number of tea blends from 91 to less than 55 over the next two years [12] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q4 performance, citing challenges in both North America and international segments [5][6] - The company is taking decisive actions to optimize cash, deleverage the balance sheet, and stabilize sales while improving profitability [22][24] - Management anticipates stronger top and bottom line performance in the second half of fiscal 2026 compared to the first half [34] Other Important Information - The company has taken $88 million in charges associated with the transformation program, with restructuring charges expected to reach $100 million to $110 million by fiscal 2027 [26] - Free cash flow in Q4 was an outflow of $9 million, compared to an inflow of $31 million in the prior year [31] - The company closed the quarter with cash on hand of $54 million and net debt of $650 million, having reduced net debt by $14 million in the quarter [32] Q&A Session Summary Question: How does the company manage reinvestment in the context of a strained balance sheet? - Management emphasized the need for financial flexibility and tough decisions to focus investments on high-return areas [38] Question: What are the differences between the current strategy and the previous Hain Reimagined program? - Management noted a shift towards decisive actions and a focus on innovation and local empowerment to drive growth [46][49] Question: What is the expected timeline for restructuring and CEO replacement? - The restructuring process is ongoing, with most changes effective between October 1 and November 1, while the CEO search is progressing in parallel with the strategic review [76][77]

Financial Data and Key Metrics Changes - The company reported an organic net sales decline of 11% year-over-year for Q4, driven by lower sales in both North America and international segments [24] - Adjusted gross margin decreased to 20.5%, down approximately 290 basis points year-over-year, due to lower volume mix, cost inflation, and higher trade spend [24] - Adjusted net loss was $2 million, or $0.02 per diluted share, compared to adjusted net income of $11 million, or $0.13 per diluted share in the prior year [26] - Adjusted EBITDA was $20 million, down from $40 million a year ago, with an adjusted EBITDA margin of 5.5% [26] Business Line Data and Key Metrics Changes - In North America, organic net sales declined 14% year-over-year, primarily due to lower sales in snacks and meal preparation products [27] - International organic net sales declined 6%, driven by lower sales in meal prep and beverages [28] - Snacks category saw organic net sales growth down 19% year-over-year, attributed to velocity challenges and distribution losses [28] - The beverages category experienced a 3% decline in organic net sales, impacted by softness in tea in North America [29] Market Data and Key Metrics Changes - The company gained market share in the UK despite challenges in the international segment, particularly in wet baby food and soup categories [5] - E-commerce grew 10% in North America, with significant growth in the UK soup category, which is the fastest growing online category [20] Company Strategy and Development Direction - The company is focused on optimizing cash, deleveraging the balance sheet, stabilizing sales, and improving profitability through a turnaround strategy [21] - Key actions include streamlining the portfolio, accelerating brand renovation and innovation, and enhancing digital capabilities [21] - The company is exiting unprofitable or low-margin SKUs and businesses where it is structurally disadvantaged, such as the meat-free category in North America [12] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q4 performance, citing challenges in both North America and international segments [4] - The company is committed to decisive actions to improve its trajectory and financial health, with a focus on reducing complexity in operations [10] - Management anticipates stronger top and bottom line performance in the second half of fiscal 2026 compared to the first half, driven by aggressive cost-cutting and execution of strategic initiatives [33] Other Important Information - The company has taken restructuring charges totaling $88 million to date, with an expected increase in restructuring charges to $100 million-$110 million by fiscal 2027 [25] - Free cash flow in Q4 was an outflow of $9 million, compared to an inflow of $31 million in the prior year [30] - The company closed the quarter with cash on hand of $54 million and net debt of $650 million, having reduced net debt by $14 million in the quarter [31] Q&A Session Summary Question: How does the company manage reinvestment in the context of a strained balance sheet? - Management emphasized the need for financial flexibility and tough decisions to focus investments on high-return areas to drive growth [36][37] Question: What are the differences between the current strategy and the previous Hain Reimagined program? - Management noted that the current focus is on actionable decisions and local empowerment, with a robust innovation pipeline and pricing strategies in place [44][46] Question: What is the expected timeline for restructuring and CEO search? - Management indicated that restructuring changes would be effective between October 1st and November 1st, and the CEO search is ongoing in parallel with the strategic review [75][76]

Financial Data and Key Metrics Changes - The company reported an organic net sales decline of 11% year over year for Q4 2025, driven by lower sales in both North America and international segments [24] - Adjusted gross margin decreased to 20.5%, a decline of approximately 290 basis points year over year, attributed to lower volume mix, cost inflation, and higher trade spend [24] - Adjusted net loss was $2 million, or $0.02 per diluted share, compared to adjusted net income of $11 million, or $0.13 per diluted share in the prior year [26] - Adjusted EBITDA was $20 million, down from $40 million a year ago, with an adjusted EBITDA margin of 5.5% [26] Business Line Data and Key Metrics Changes - In North America, organic net sales declined 14% year over year, primarily due to lower sales in snacks and meal preparation products [27] - Adjusted gross margin in North America was 19.2%, a decrease of 340 basis points, with adjusted EBITDA of $10 million compared to $21 million in the prior year [27] - International organic net sales declined 6%, with adjusted gross margin at 22.1%, approximately 270 basis points below the prior year [28] Market Data and Key Metrics Changes - The snacks category saw organic net sales growth down 19% year over year, driven by velocity challenges and distribution losses [28] - The beverages category experienced a 3% decline in organic net sales, impacted by softness in tea in North America [29] - The meal prep category's organic net sales growth was down 8%, primarily due to softness in oils and nut butters in North America [29] Company Strategy and Development Direction - The company is focused on optimizing cash, deleveraging the balance sheet, stabilizing sales, and improving profitability through a turnaround strategy [21] - Key actions include streamlining the portfolio, accelerating brand renovation and innovation, and enhancing digital capabilities [21] - The company is exiting unprofitable or low-margin SKUs to focus on brands with the highest growth potential [11] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q4 performance, citing challenges in both North America and international segments [4] - The company is committed to decisive actions to improve financial health and streamline operations, with a focus on driving productivity and working capital efficiency [21] - Management anticipates stronger top and bottom line performance in the second half of fiscal 2026 compared to the first half [33] Other Important Information - The company has initiated a restructuring program with expected charges of $100 million to $110 million by fiscal 2027 [25] - Free cash flow in Q4 was an outflow of $9 million, compared to an inflow of $31 million in the prior year [30] - The company closed the quarter with cash on hand of $54 million and net debt of $650 million, having reduced net debt by $14 million in the quarter [31] Q&A Session Summary Question: How does the company manage reinvestment in the context of a strained balance sheet? - Management emphasized the need for tough decisions to focus investments on high-return areas, driving financial flexibility across the P&L [36][37] Question: What are the expectations for EBITDA in fiscal 2026? - Management indicated a comfortable cushion for leverage ratios, with a focus on cash generation and cost initiatives to improve performance [39] Question: What insights can be shared about the Hain Reimagined program and its shortcomings? - Management noted that previous efforts focused more on structure rather than execution, and emphasized a renewed focus on pricing and innovation [44][46] Question: What is the timeline for restructuring and CEO search? - Management confirmed that restructuring changes are currently being implemented, with most changes effective between October 1 and November 1 [75] Question: How does the company plan to address distribution losses in the snacks category? - Management acknowledged the need for continuous innovation and marketing to regain distribution and improve velocity in the snacks business [60][62]