Financial Data and Key Metrics Changes - In Q2 2025, the company generated revenue of $163.6 million and EBITDA of $38.4 million, with revenue increasing by 3% and EBITDA up by 7% compared to the prior year [6][12] - The EBITDA margin improved by 170 basis points to over 46% for the Nevada locals casinos segment [6] Business Line Data and Key Metrics Changes - The Nevada locals casinos segment posted its highest quarterly EBITDA in two years, with EBITDA growth of over 9% [6] - The casino resort segment experienced a 3% decline in revenue and a 5% decline in EBITDA, primarily due to low table game hold in Laughlin [7] - The Tavern business saw a 7% year-over-year revenue decline, although EBITDA stabilized in July compared to the previous year [10] Market Data and Key Metrics Changes - The occupancy rate for The Strat was 69%, down 4% from the previous year, with June occupancy falling to 60% [8] - The company anticipates stabilization of bookings in August and expects increased attendees at the Las Vegas Convention Center in Q4 and Q1 2026 [8][12] Company Strategy and Development Direction - The company is focused on managing its cost structure, investing in its own assets, and returning capital to shareholders, with M&A being a lower priority due to the uncertain business environment and elevated interest rates [11][12] - The company expects to benefit from recent tax legislation providing relief on tips and overtime, which will support organic growth [12] Management's Comments on Operating Environment and Future Outlook - Management noted that summer business volatility is expected to abate in the fall, with positive outlooks for local properties and the Laughlin market [12] - There are expectations for improved demand dynamics and occupancy rates, particularly for weekends [22] Other Important Information - The company ended the quarter with $432 million in funded debt and $52 million in cash, having repurchased over 500,000 shares for $14.6 million in Q2 [11] - The company has $77 million remaining on its current buyback authorization [11] Q&A Session Summary Question: Expected impacts from the passing of the big beautiful bill - Management expects to benefit from accelerated depreciation, estimating an additional $10 to $15 million in tax shield, translating to $2 to $3 million in cash flow [14][15] Question: Growth outlook for the second half of the year - Management sees a positive outlook for local properties and Laughlin, with some recovery expected for The Strat post-midsummer [18][20] Question: Strategy to mitigate recent depressed prices and rates on the Strip - The company is focused on managing costs, including curtailing restaurant hours during midweek and adjusting services based on occupancy [22][24] Question: M&A landscape and opportunities - Management indicated that while there are potential targets, M&A is not a focus until the business stabilizes and interest rates decrease [28][30] Question: Customer spending at The Strat - Despite lower foot traffic, spending per trip remains consistent, with positive trends in casino metrics and strong performance from the top of the world restaurant [32][34] Question: Growth outlook for Laughlin - Management is optimistic about Laughlin's growth due to its prime location, new marketing strategies, and the expected increase in discretionary spending from customers benefiting from tax breaks [39][41]

Financial Data and Key Metrics Changes - The company reported revenue of $386.1 million for Q2 2025, achieving the high end of its guidance range and significantly exceeding the earnings per share forecast with $0.43, well above the guidance range of $0.20 to $0.30 [6][18] - Gross margin for Q2 was 68.8%, down from 70% in the prior year, while the core Nu Skin business gross margin improved to 77.5%, up 140 basis points year over year [18][19] - Operating margin improved to 8%, up from an adjusted operating margin of 5.4% in the prior year, reflecting operational efficiency efforts [20] Business Line Data and Key Metrics Changes - The Rise segments performed well, with manufacturing reporting a 17% year-over-year increase [7][14] - Latin America showed strong year-over-year growth, exceeding 100% in revenue, customers, and sales leaders, while North America faced declines due to macro pressures [6][12] - Japan reported growth, benefiting from a strong subscription-based wellness business, while South Korea and China experienced revenue declines due to economic challenges [7][12] Market Data and Key Metrics Changes - Latin America continues to outperform expectations, while North America, China, and Korea are under scrutiny for potential impacts on guidance [26][27] - Europe and Africa showed improving trends in customer engagement, and the Pacific region experienced growth, although Southeast Asia remained sluggish [7][12] Company Strategy and Development Direction - The company is focused on launching its innovative wellness platform, Prism IO, which will provide personalized health insights and product recommendations [8][10] - The developing market strategy is crucial, with significant progress in Latin America and plans for a premarket opening in India by Q4 2025 [12][13] - Project Accelerate aims to improve operational efficiencies and expand margins, with a target gross margin of 78% for the core business [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted the importance of disciplined cost management [20][22] - The company anticipates revenue for Q3 2025 to be between $360 million and $390 million, with full-year revenue projected at $1.48 billion to $1.55 billion [22][23] - Management remains focused on driving operational performance and maintaining a strong financial position despite ongoing global challenges [23] Other Important Information - The company achieved a net cash positive position for the first time in over four years, ending the quarter with $264 million in cash [21] - A dividend of approximately $3 million was returned to shareholders, with $157.4 million remaining under the current share repurchase authorization [21] Q&A Session Summary Question: Thoughts on guidance and potential impacts from initiatives or geographies - Management noted that Latin America is overperforming, while North America is facing challenges, particularly in Korea and China due to macro uncertainties [26][27] Question: Insights on Latin America's performance and future potential - Management highlighted a simplified operational model and a three-pronged strategy focusing on product, business model, and operational efficiency as key to success in Latin America [30][31] Question: Future margin improvement opportunities - Management indicated ongoing efforts in inventory management and selling expense optimization, with confidence in continued margin improvements [34][35] Question: Capital allocation priorities for the second half of the year - Management emphasized investing in growth opportunities, particularly in Prism IO and developing markets like India, while also servicing debt and maintaining dividends [36][39]

Financial Data and Key Metrics Changes - The company reported $42.7 million in revenue for Q2 2025, representing a 217% year-over-year increase [31][36] - GAAP gross margin was 39%, down year-over-year, while non-GAAP gross margin was 58%, both metrics improved sequentially [37][40] - The company experienced a GAAP net loss of $74.7 million and a non-GAAP net loss of $11.9 million for the quarter [41][42] Business Line Data and Key Metrics Changes - Significant growth was noted across all key business lines, including automotive, AI customer service for enterprises, and AI for restaurants [6][31] - The number of active restaurants using the Voice AI ordering solutions exceeded 14,000 locations, adding approximately 1,000 locations in Q2 [35] - The automotive sector saw strong growth with new OEM deals, including a major win in China [15][36] Market Data and Key Metrics Changes - The company processed over 3 billion queries in Q2, marking a 100% increase year-over-year [35] - The enterprise AI segment showed strong execution, with notable traction across various industry verticals [31][32] - The company has established relationships with seven of the top 10 global financial institutions, with upsell deals contributing to growth [21] Company Strategy and Development Direction - The company is focused on a three-pillar strategy that integrates voice AI, AI customer service, and voice commerce, creating a comprehensive ecosystem [30] - The introduction of the agentic AI platform Amelia Seven is expected to drive upsell opportunities and enhance customer engagement [24][30] - The company aims to leverage its advanced technology to capture growth opportunities in various sectors, including automotive and restaurants [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for AI solutions and the potential for continued growth, despite acknowledging the non-linear nature of revenue momentum [44][46] - The company is increasing its revenue outlook for 2025 to between $160 million and $178 million, reflecting strong close rates on major deals [44][46] - Management highlighted the importance of customer success initiatives to reduce churn and drive growth within existing accounts [86] Other Important Information - The company is migrating its solutions to its proprietary Polaris model, which has shown significant improvements in performance and cost efficiency [11][39] - The company has no debt and reported cash and equivalents of $230 million at the end of the quarter [42] Q&A Session Summary Question: How would you rank the contribution of different verticals to sequential growth? - Management noted strong momentum across all verticals, with enterprise AI showing significant progress and restaurants continuing to scale [48][50] Question: Who are you competing with for the Chinese OEM business? - The company competes with both legacy providers and local Chinese AI companies, emphasizing the quality and comprehensiveness of its technology [54][56] Question: Are there opportunities to improve your selling process or optimize pricing? - The company is using AI internally to enhance processes and improve efficiency, which has led to increased headcount and development capabilities [61][62] Question: What is the potential wallet share with existing customers? - Management believes there is significant runway for growth, with low penetration of voice AI solutions across various verticals [65][67] Question: Is the revised guidance for 2025 conservative or seasonal? - Management indicated that the guidance reflects a prudent approach due to the lumpiness of major deals and seasonality in the business [71][74] Question: Can you provide details on the Red Lobster account? - The company has maintained a partnership with Red Lobster through its bankruptcy and is now scaling the relationship as the brand recovers [75][78] Question: How to model Q3 versus Q4 revenue? - Management expects Q4 to be stronger than Q3, driven by seasonal dynamics and ongoing deal momentum [81][82] Question: What are the key drivers for growth in the second half of the year? - Growth is expected across all pillars, with a focus on customer success and expanding existing partnerships [85][88] Question: Can you provide updates on voice commerce? - Voice commerce is expected to have an indirect revenue impact, enhancing adoption in existing customer segments [100][101]

Financial Data and Key Metrics Changes - The adjusted EPS for the quarter was $0.60, slightly down from the previous quarter due to the timing of gain on sale revenue [6][23] - Adjusted recurring net investment income increased by 19% year to date compared to 2024, reflecting the recurring revenue nature of the business [6][19] - The company reaffirmed guidance of 8% to 10% compound annual adjusted EPS growth through 2027 [6][25] Business Line Data and Key Metrics Changes - The FTN business has grown significantly, with a pipeline now exceeding $6 billion and new business year to date yielding an average of over 10.5% [5][18] - Approximately $900 million in transactions were closed in the first half of the year, a 9% increase from the previous year [16] - The portfolio yield is currently at 8.3%, expected to increase as higher yielding investments are funded [18][23] Market Data and Key Metrics Changes - The company maintains a diversified approach, with strong representation across various markets, including energy efficiency, community solar, and renewable natural gas [12][27] - The company’s managed assets reached $14.6 billion, with a portfolio of $7.2 billion, reflecting a 1316% increase from the same time last year [18] Company Strategy and Development Direction - The company focuses on climate-positive investments and diversification across asset classes to mitigate risks from market slowdowns [4][9] - The strategy includes capital recycling and filling the void left by the lack of tax equity in the project capital stack in the future [9][10] - The company is well-positioned to thrive in the current operating environment without needing to make material changes to its existing strategy [10][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model and strategy, emphasizing the importance of an all-of-the-above energy strategy in the U.S. [6][7] - The company anticipates that rising power prices will drive additional development, particularly in renewables [8][9] - Management noted that the existing portfolio's value increases as power prices rise, and the pipeline remains insulated from policy changes [9][10] Other Important Information - The company ended the quarter with a debt-to-equity ratio of 1.8x, operating within the target range of 1.5x to 2x [22] - The company has strong liquidity levels of $1.4 billion, providing flexibility in funding and managing refinancing [22] Q&A Session Summary Question: Can you discuss the ServiceCo acquisition from Nova? - The acquisition involves a joint venture, SunStrong, which services residential solar leases and is expected to provide scale to the business [30][32] Question: How might this impact EPS going forward? - Currently, the joint venture's impact on EPS is not visible, but as it scales, margins from this business will likely contribute to EPS [34][35] Question: How is the residential solar loan portfolio performing? - The company noted that over 95% of its portfolio consists of leases, which have better performance metrics compared to loans [37] Question: What is the outlook for adjusted ROE? - Adjusted ROE is expected to trend upward gradually as capital efficiency improves, but no significant jumps are anticipated [42][44] Question: How will CCH1 debt flow through the income statement? - CCH1 debt does not appear on the balance sheet but will increase returns as investments are funded with the proceeds [46][48] Question: Can you clarify the next frontier investments? - The next frontier includes investments that are less susceptible to policy changes, with a focus on diversifying the business [52][90] Question: What is the status of international expansion? - Currently, there are no updates on international expansion, but the company may work with existing clients on non-U.S. projects in the future [91]

Financial Data and Key Metrics Changes - As of June 30, 2025, the company ended the quarter with $158.1 million in cash, cash equivalents, and investments, compared to $79.9 million at the end of 2024 [16] - Total revenue for the quarter was $18.7 million, down from $25.1 million in 2024, primarily due to the completion of performance obligations in collaborations with BMS and Amgen, as well as decreased activity with Moderna [16] - Operating expenses decreased to $19.9 million from $33.6 million in 2024, with R&D expenses at $13.3 million, a decrease of $11.9 million compared to 2024 [16][17] Business Line Data and Key Metrics Changes - The company is focused on the CX-2051 program, which targets colorectal cancer (CRC) and has shown a 28% confirmed overall response rate in initial Phase I data [8][9] - CX-801, a masked interferon alpha-2B program, is being developed in combination with Keytruda for metastatic melanoma, with initial data expected in 2026 [11][12] Market Data and Key Metrics Changes - CRC is a significant unmet need in oncology, with approximately 1.9 million patients diagnosed globally each year, expected to rise to over 3 million in the coming decades [5] - The five-year survival rate for metastatic CRC is currently about 13%, highlighting the urgent need for new treatments [5] Company Strategy and Development Direction - The company aims to advance CX-2051 as a first-in-class treatment for late-line CRC, with plans for combination studies in earlier lines of therapy [10][18] - The strategy includes exploring partnerships for broader applications of EpCAM beyond CRC, as it is expressed in many solid tumors [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of CX-2051 in addressing the high unmet need in CRC and plans to execute against this opportunity as a top priority [18] - The company is also focused on generating proof of concept for CX-801 in combination with Keytruda, which could reestablish interferon as a key component of immunotherapy [18] Other Important Information - The company completed a $100 million follow-on offering, strengthening its financial position with a projected cash runway into 2027 [14] - Management emphasized a disciplined, data-driven capital allocation approach to advance promising opportunities in the pipeline [17] Q&A Session Summary Question: Potential to move into earlier lines of colorectal therapy - Management indicated a focus on late-line opportunities first, with plans to explore earlier lines through combination studies in the future [21][22] Question: Rationale for value creation of EpCAM beyond CRC - Management acknowledged the potential for EpCAM in various solid tumors and indicated that partnerships could be explored when the time is right [28][30] Question: Bar for accelerated approval in CRC - Management noted that while there is no precedent for accelerated approval based on overall response rate (ORR) in CRC, they are considering strategies to expedite approval due to the high unmet need [34][36] Question: Confidence in combination potential of CX-801 with KEYTRUDA - Management highlighted the strong mechanistic precedent for the combination and the ongoing study of tumor biopsies to assess the immune microenvironment [42][44] Question: Size of the dataset for CX-2051 and durability data - Management expects to have a larger dataset by Q1 2026, with plans to integrate this data into their strategy for Phase II [52][54]

Financial Data and Key Metrics Changes - Total revenue increased by 11% to $67.1 million for Q2 2025 compared to $60.4 million in the prior year period [5] - Service revenue rose by 10%, primarily driven by wholesale capacity services and an increase in the average number of subscribers in commercial IoT [5] - Adjusted EBITDA increased to $35.8 million from $32.6 million in the prior year's second quarter, despite certain cost increases impacting adjusted EBITDA margin by 300 basis points [5][6] - Adjusted free cash flow for the six months ended June 30, 2025, was $77.9 million compared to $51.9 million in the prior year period [6] Business Line Data and Key Metrics Changes - Growth in commercial IoT was highlighted by a record number of growth activations over the last twelve months [5] - The XCOM RAN development incurred higher cash costs, negatively impacting adjusted EBITDA by approximately $1.9 million [6] Market Data and Key Metrics Changes - The company is well-positioned to manage potential financial impacts from evolving tariff environments due to its global manufacturing and logistics footprint [7] - The company anticipates a relatively immaterial impact from tariffs in the near term [7] Company Strategy and Development Direction - The company is focused on executing a clearly defined strategy to capture opportunities in government and commercial sectors, including investments in core infrastructure and strategic partnerships [11][12] - A global infrastructure program has been initiated to prepare for the next generation extended MSS network, with significant upgrades planned across multiple ground stations [12] - The company is expanding its presence in defense and government markets, with new agreements expected to contribute significantly to revenue [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term profitability and strategic importance of the XCOM RAN product offering despite upfront investments [6] - The company reiterated its full-year 2025 revenue outlook in the range of $260 million to $285 million, with an anticipated adjusted EBITDA margin of approximately 50% [7] Other Important Information - The company signed a launch services agreement with SpaceX for the deployment of additional satellites, expected to enhance service continuity [13][18] - The company is actively advancing its XCOM RAN platform, which is seen as a critical entry point into terrestrial wireless markets [16][17] Q&A Session Summary Question: Any updates on the international retail opportunity for terrestrial? - Management indicated progress in enterprise sales cycles and opportunities for expansion in the business [21][22] Question: Are there any other engagements in different verticals? - Management confirmed ongoing discussions with companies in high-demand network rollouts and positive developments in government projects [26][27] Question: Any updates on XCOM RAN as a potentially licensable technology? - Management noted challenges in licensing but emphasized strong technical validation and interest in their product [28][29] Question: Updates on international licenses and authorizations? - Management reported recent success in obtaining licenses in Mexico and ongoing efforts to secure higher power system authorizations [31][32] Question: Feasibility of spectrum sharing? - Management addressed misinformation about spectrum utilization and expressed confidence in their regulatory relationships [36][39]

Financial Data and Key Metrics Changes - Net product revenue for Q2 was $100.8 million, down 23% year over year, within the guidance range of $100 million to $110 million [16] - Advanced Wound Care net product revenue was $92.7 million, down 25%, while Surgical and Sports Medicine products revenue increased by 16% to $8.1 million [16][20] - Gross profit for Q2 was $73.1 million, representing 73% of net product revenue, down from 78% the previous year [17] - Operating expenses decreased to $113.6 million from $144.1 million, a reduction of 21% year over year [17] - GAAP net loss for Q2 was $9.4 million, compared to a net loss of $17 million last year, showing improvement [18] Business Line Data and Key Metrics Changes - Advanced Wound Care products saw a revenue decline of 25%, attributed to customer demand disruptions and competitive pricing strategies [5][16] - Surgical and Sports Medicine products experienced a revenue increase of 16%, indicating strong performance in this segment [16] Market Data and Key Metrics Changes - The proposed Medicare payment reform for skin substitutes is expected to significantly impact the market, with a proposed rate of approximately $125 per square centimeter [30] - The current market for Aplograft is only 3% of units sold, indicating substantial growth potential with the new payment structure [31] Company Strategy and Development Direction - The company is focused on gathering clinical and real-world evidence to enhance its product portfolio and market penetration [10] - Expansion of biomanufacturing capabilities is underway, with a new facility in Smithfield, Rhode Island, aimed at supporting product reintroduction and new launches [11] - The RENEW program is on track for submission by the end of the year, targeting a significant market of over 30 million Americans suffering from knee osteoarthritis [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the proposed CMS payment reforms, viewing them as a transformational opportunity for the company and the industry [30] - The company anticipates aggressive pricing strategies from competitors in the latter half of 2025 but remains confident in its product momentum [33] - The guidance for 2025 has been updated, expecting net revenue between $480 million and $510 million, reflecting a year-over-year change of flat to a 6% increase [19][20] Other Important Information - The company has no outstanding debt obligations and reported cash and equivalents of $73.7 million as of June 30, 2025, down from $136.2 million at the end of 2024 [19] - Adjusted EBITDA loss for Q2 was $3.6 million, compared to adjusted EBITDA income of $15.6 million last year, indicating a significant shift in profitability [18] Q&A Session Summary Question: How does the CMS proposal for 2026 impact the company? - Management views the CMS proposal as a transformational event, providing a significant opportunity for their products and leveling the playing field in reimbursement [30][31] Question: Has the guidance reduction accounted for aggressive market behavior? - Management believes the guidance reduction reflects the current market conditions and anticipates strong performance from recently launched products in the second half of the year [34][35] Question: What is the timing for the reintroduction of Dermagraft? - Management indicated that Dermagraft is expected to be launched by 2027 [37] Question: How does RENEW position itself in the knee OA treatment landscape? - Management highlighted the strength of RENEW's data, indicating it will compete well against existing injectable options [41] Question: What drove the strength in the Surgical and Sports Medicine segment? - The segment's growth was attributed to strong performance and the implementation of hybrid sales strategies, with a 16% increase in Q2 [42]

Financial Data and Key Metrics Changes - The company ended Q2 2025 with $1,075.9 million in cash and investments, with no debt on the balance sheet [24] - The net loss for Q2 was $41.6 million, or $2.95 per share, while the non-GAAP net loss was $39.2 million, or $2.78 per share [27] - Non-cash royalty revenue for 2025 was reported at $11.2 million, with an expectation of approximately $40 million for the full year [25] Business Line Data and Key Metrics Changes - The ongoing Phase IIb study for Respag in atopic dermatitis met its primary endpoint, showing statistical significance in EASI score changes from baseline [14] - The Phase IIb study for alopecia areata is set to report data in December, with a focus on the mean percent improvement in SALT score [19] Market Data and Key Metrics Changes - The atopic dermatitis market has grown to approximately $15 billion in U.S. sales since Dupixent's launch, with projections to reach nearly $30 billion by 2033 [8] - The market for alopecia areata treatments is projected to grow to $2 billion by 2033 [12] Company Strategy and Development Direction - The company aims to position Respag as a first-in-class treatment for atopic dermatitis and alopecia areata, with plans to enter Phase III development in 2026 [8][10] - The strategy includes engaging with the FDA for regulatory pathways and designing Phase III trials that include both biologic naive and experienced patients [34][36] Management's Comments on Operating Environment and Future Outlook - Management highlighted the significant unmet need in atopic dermatitis and alopecia areata, emphasizing the potential of Respag to address these conditions [8] - The company is optimistic about the upcoming data from the RESOLVE AD study and its implications for future treatment options [11] Other Important Information - The company completed a secondary public offering in July 2025, raising approximately $107.5 million in net proceeds, which strengthens its financial position [24] - The company is actively discussing partnership opportunities for Respag, considering both strategic collaborations and non-dilutive financing options [36][38] Q&A Session Summary Question: Have you started to engage with regulators regarding the sixteen-week data? - The company is preparing for an end-of-phase II meeting with regulators to discuss trial design and plans for Phase III studies [32][34] Question: What are your thoughts on partnership opportunities for Respag? - The company is in discussions with potential partners and is exploring various collaboration and financing options [36][38] Question: Can you walk us through the competitor product profile for alopecia areata? - The company noted that there are currently no approved biologics for alopecia areata, and they aim to establish Respag as a leading treatment option [44][48] Question: What is your comfort level with the powering of the maintenance phase of the trial? - The company reported that 190 patients moved into the maintenance arm, indicating a solid population for analysis [97]

Financial Data and Key Metrics Changes - The company reported a record GMV of $5.04 billion and record revenue of $165 million, both up 14% year over year [8][20] - Adjusted EBITDA was $6.8 million, representing a 4.1% margin, which was a substantial beat versus expectations [9][23] - Gross profit for Q2 was $123 million, with a gross margin of 74.3%, an increase of 20 basis points year over year [21][22] - Operating expenses were $133 million, improved by 690 basis points year over year as a percentage of revenue [22][23] - The company ended the quarter with $109 million in cash and cash equivalents, and reduced total debt by $27 million [24][25] Business Line Data and Key Metrics Changes - Consignment revenue grew 14%, while direct revenue increased 23% compared to the previous year, representing 12% of total revenue [20][21] - The consignment gross margin was 89.3%, an improvement of 93 basis points year over year [21][22] - Direct gross margin was 16.2%, fluctuating based on the category mix of products sold [21] Market Data and Key Metrics Changes - The active buyer base increased by 6% on a trailing twelve-month basis, exceeding 1 million active buyers [20] - The company noted that 53% of its customers are millennials and Gen Z, indicating a strong generational appeal [7] Company Strategy and Development Direction - The company is focused on a growth playbook centered on sales, marketing, and stores, with a new sales team compensation plan emphasizing retail value [10] - The strategy includes leveraging AI for operational efficiency and enhancing customer engagement through innovative features [13][16] - The company is expanding its dropship initiative to include jewelry, aiming to partner with larger luxury good aggregators [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of the business, with expectations for continued growth in Q3 and Q4 [32][30] - The company raised its full-year guidance, expecting GMV in the range of $2.03 billion to $2.045 billion, and revenue between $667 million and $674 million [26][27] - Management highlighted the favorable cash dynamics of the business model, anticipating strong positive free cash flows in the second half of the year [25][29] Other Important Information - The company is actively addressing counterfeiting issues in luxury goods through collaboration with law enforcement and proprietary technology [14] - The introduction of the reconsigned program has strengthened supply and created a circular loop for luxury assets [11] Q&A Session Summary Question: Can you comment on the cadence seen over the past couple of months? - Management noted that momentum has kept pace in Q3, with double-digit new seller growth continuing [32] Question: How should we think about the take rate and gross margin going forward? - Management explained that the take rate is influenced by the average order value, which was up 8%, and that consignment gross margins remain strong [36][37] Question: Can you elaborate on the expansion to luxury vendors and international consignors? - Management indicated that the dropship channel is still in early stages but has potential for growth, especially with international partners [42] Question: What drove the increase in new consignors? - Management attributed the growth to marketing reinvestment and the effectiveness of the growth playbook, including the reconsign feature [51][52] Question: How is Athena impacting operational efficiency? - Management stated that Athena is currently processing 20% of items, with plans to increase to 30-40% by year-end, aiming to reduce costs per unit [55][88]

Financial Data and Key Metrics Changes - In Q1, bookings and revenue grew over 30% year over year on a reported basis and 10% on a pro forma basis [6] - Non GAAP operating margins remained robust at 52% and non GAAP EPS exceeded guidance at $0.64, up 20% year over year [6][36] - Q1 bookings were $1.2 billion, up 32% year over year, and revenue was $1.26 billion, up 30% year over year [25] Business Line Data and Key Metrics Changes - The Cyber Safety Platform represented two-thirds of Q1 revenue, growing 11% on a reported basis and 4% when normalizing for the extra week [9] - Trust Based Solutions represented one-third of revenue, growing over 100% on a reported basis and 25% when normalized for the extra week and MoneyLion baseline [13] - MoneyLion's revenue grew 45% pro forma, driven by personal financial management offerings and the AI-powered financial marketplace [15] Market Data and Key Metrics Changes - The direct revenue channels grew 25% as reported and 6% pro forma, with strong fundamentals across channels and geographies [27] - Partner channels grew 68% as reported and 38% pro forma, driven by strength in employee benefits and international partnerships [28] - The total paid customer count reached over 76 million, with 40.6 million direct paid customers and 28 million engaged through partner channels [30][32] Company Strategy and Development Direction - The company is focused on product innovation and integration of MoneyLion, with plans to launch the first integrated product under Gen's brand by fall [7][18] - The strategy includes leveraging AI for operational efficiency and customer engagement, aiming to become an AI-first company [20][21] - The company raised its annual revenue guidance by $100 million to a range of $4.8 billion to $4.9 billion, reflecting confidence in growth [21][41] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the business amid macroeconomic uncertainty, supported by a recurring revenue base and strong customer retention [41] - The evolving cyber threat landscape necessitates continuous innovation and proactive measures to protect consumers [10][11] - The integration of MoneyLion is expected to enhance customer engagement and retention, driving long-term value creation [18][82] Other Important Information - The company plans to host an investor briefing on September 8 to discuss strategic direction and MoneyLion's product portfolio [17] - Q1 operating income was $650 million, translating to a 52% operating margin, with high margins expected to continue [35] - The company repurchased nearly 5 million shares during Q1 and paid down $180 million in debt [38] Q&A Session Summary Question: Can you discuss the fundamental trends in MoneyLion's business? - Management noted that MoneyLion's growth accelerated to 45% in Q1, with strong performance in both personal financial management and the marketplace [46][48] Question: How does the company view pricing as a lever for monetization? - The strategy focuses on delivering innovative products that enhance customer protection, which in turn justifies price increases and higher ARPU [50][56] Question: What operational improvements have been implemented in MoneyLion? - Management highlighted the focus on growth and operational integration, with expectations for continued innovation and margin improvement [62][63] Question: What drove the strength in the Cyber Safety business in Q1? - The company attributed the strength to cross-selling, upselling, and strong retention rates, maintaining a mid single-digit growth rate [72][73] Question: How will the growth rates of the new reporting segments be structured going forward? - Cyber Safety is expected to maintain mid single-digit growth, while Trust Based Solutions is projected to see double-digit growth as it integrates with MoneyLion [76]