Financial Data and Key Metrics Changes - Revenue for Q4 2025 totaled $8.6 million, a 36% increase from $6.3 million in Q4 2024 [30] - Full year 2025 revenue was $32.4 million compared to $26.9 million in 2024 [30] - Gross margin for Q4 and full year 2025 was approximately 50% and 53% respectively [31] - Operating loss for Q4 2025 was $5.6 million, improved from $7.6 million in Q4 2024 [32] - Negative free cash flow for the full year was $13.8 million, compared to $8.5 million in 2024 [33] Business Line Data and Key Metrics Changes - System revenue for Q4 was $3.3 million, up from $1.4 million in the prior year [30] - Recurring revenue for Q4 was $5.3 million, down from $9.4 million in the prior year [30] - Full year system revenue was $10.2 million compared to $8.6 million in the prior year [30] - Full year recurring revenue was $22.2 million, up from $18.3 million in the prior year [31] Market Data and Key Metrics Changes - The electrophysiology (EP) market is projected to grow from over $13 billion to $20 billion by 2030 [14] - The company views the market opportunity for robotics in EP as $2 billion [15] Company Strategy and Development Direction - The company aims to pioneer robotics in minimally invasive endovascular surgery, focusing on making its robot widely available and building an ecosystem of catheters [10][11] - Key strategic pillars include rapid installation of robots, reducing dependencies on third-party catheters, leveraging core technology for broader applications, and establishing a digital backbone for connectivity [10][11] - The company achieved regulatory approvals for the GenesisX robot and associated catheters, marking a significant milestone [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth in 2026, with expectations for quarterly revenue to ramp above $10 million in the latter half of the year [35] - The company anticipates a working capital benefit to cash flow in 2026 after significant investments in working capital in 2025 [36] - Management is optimistic about overcoming manufacturing challenges and expects to establish a strong foundation for future growth [29] Other Important Information - The company has a cash balance of $13.4 million and no debt as of December 31 [34] - Manufacturing challenges have been a focus, particularly with the MAGiC catheter, which faced production issues [22][74] Q&A Session Summary Question: What is the goal for GenesisX programs and sales expectations? - Management expects Genesis sales to continue at a similar pace as previous years, with mid-single digit numbers of Genesis systems sold annually [39] Question: What is the revenue goal for Synchrony in 2026? - The revenue goal includes capital sales and recurring revenue from service contracts and software subscriptions, with several hospitals expected to standardize their EP labs on Synchrony [43] Question: How is the allocation of MAGiC catheters being managed amid manufacturing constraints? - Management acknowledged the challenge of ramping manufacturing and is working to ensure that administrative efforts are in place to meet demand as production increases [49] Question: What are the economic models for GenesisX? - Three core models are being utilized: outright capital sale, leasing, and placement with disposable commitments, allowing flexibility in revenue generation [76] Question: What is the outlook for the Chinese market? - The company expects the first Genesis systems to be sold in China this year, with ongoing efforts to transition to new catheter systems and regulatory submissions [90]

Financial Data and Key Metrics Changes - LifeMD reported a revenue growth of 25% year-over-year for 2025, totaling $194.1 million, with a gross margin of 85.7%, a slight decrease of 50 basis points compared to the previous year [21][22] - The fourth quarter revenue grew 4% year-over-year to $46.9 million, with a gross margin of 87.1%, an increase of 570 basis points from the prior year [19][20] - GAAP net income for the fourth quarter was $19 million or $0.41 per share, including a one-time benefit from the sale of WorkSimpli [20] - Adjusted EBITDA for the fourth quarter was $4.8 million, up from $1.1 million in the previous year [20] Business Line Data and Key Metrics Changes - The weight management business is experiencing record patient acquisition, with new signups approaching 700 per day, and customer acquisition costs have declined sequentially [4][19] - The men's health segment, represented by the Rex MD brand, has approximately 215,000 active patients and returned to growth in the second half of 2025 [8] - Women's health is a significant focus, with investments in launching this offering, including acquiring Optimal Human Health MD and partnerships with recognized experts in the field [5][6][7] Market Data and Key Metrics Changes - LifeMD has over 322,000 active subscribers and receives more than 120,000 unique daily visitors to its websites, indicating strong brand strength and demand for services [3] - The company expects to cover over 220 million lives through expanded partnerships with third-party benefits partners by the end of Q2 2026 [15] Company Strategy and Development Direction - LifeMD is focused on leveraging artificial intelligence to enhance care delivery, diagnostics, and patient operations, with plans to launch an AI clinical decision support tool in the first half of 2026 [11][12] - The company aims to build a comprehensive technology platform that integrates emerging AI capabilities and insurance benefits to improve patient experience [15][16] - LifeMD is committed to expanding its pharmacy operations, which are now licensed in all 50 states, to support personalized compounded medications [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing record demand in weight management and a diversifying specialty care platform [17] - The company anticipates returning to adjusted EBITDA profitability in Q2 2026 after making significant investments in patient acquisition [23] - Management highlighted the importance of insurance enablement in driving customer acquisition and retention, with expectations of improved metrics in this area [15][64] Other Important Information - LifeMD's balance sheet is strong, with nearly $37 million in cash and no debt, providing financial flexibility for growth investments [3][22] - The company is seeing high demand for the oral Wegovy pill, which has significantly contributed to new patient acquisitions in the weight management segment [27][71] Q&A Session Summary Question: Demand for Wegovy pill and brand products - Management noted strong demand for the Wegovy pill since its launch in January, with nearly doubled new patient acquisition in the weight loss business [27] Question: Revenue model for Wegovy pill - The pricing for the Wegovy pill is typically around $249 per month, with healthy gross margins of approximately $100 per order [30] Question: Investments in Q1 2026 - The company plans to increase sales and marketing expenditures significantly, with a focus on driving patient acquisition while reducing customer acquisition costs [33] Question: Revenue ramp and drivers - Growth will primarily come from subscriber count increases in the GLP-1 weight management business, women's health, and the Rex MD brand [36] Question: Women's health performance compared to other markets - Initial performance in women's health shows high intent and promising retention rates, with significant investments made in marketing and advisor partnerships [43][45] Question: Stickiness of Wegovy pill versus injectable - Retention rates for the Wegovy pill are better than the injectable, but long-term retention is still to be determined [54] Question: Comparison with competitors - LifeMD differentiates itself through its own provider group and a comprehensive care platform, offering synchronous care and a range of specialty services [56][58] Question: Patient acquisition channels - The marketing strategy remains similar to past efforts, with new partnerships yielding strong performance in patient acquisition [62] Question: Lifetime value of covered patients versus cash pay patients - Management believes that patients using insurance will have better retention and lifetime value compared to cash pay patients, though this is still being validated [64][67] Question: In-house pharmacy fulfillment - Approximately 70% of fulfillment is handled in-house, leading to a margin improvement of 150-200 basis points [72]

Financial Data and Key Metrics Changes - The company reported full-year revenue of $40.9 million, representing a 26% growth over 2024 [5][21] - Fourth quarter revenue was $11.4 million, the highest revenue quarter of the year, up 13% from the third quarter but down slightly year-over-year [14][19] - Gross margin for the fourth quarter was 68.6%, down from 71.4% a year ago, but up from 63.8% in the third quarter [19] - Operating loss for the fourth quarter was $2.8 million, compared to an operating loss of about $200,000 in the prior year quarter [20] Business Line Data and Key Metrics Changes - The U.S. Orthotics and Prosthetics (O&P) channel achieved quarterly revenue exceeding $1 million for the first time, up 81% year-over-year [6][18] - Revenue from the O&P channel was up 81% for the quarter and doubled for the year [6][8] - The MyoConnect program contributed to 42% of fourth quarter revenue, up from 26% in the fourth quarter of 2024 [8] Market Data and Key Metrics Changes - International operations delivered quarterly revenues exceeding $2 million for the first time, growing 46% for the quarter and 48% for the year [8][18] - The company signed in-network contracts with additional Medicare Advantage and commercial payers, including a significant agreement with Elevance Health covering 45 million lives [10] Company Strategy and Development Direction - The company aims to grow revenue through direct-to-patient marketing and expand orders from recurring sources [4] - A focus on managing cost structure and enhancing manufacturing processes to demonstrate operating leverage as the company scales [4] - Continued innovation in product development to maintain market leadership, including the launch of the MyoPro 2X and development of MyoPro 3 [12][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth in recurring patient sources and the MyoConnect program, which is expected to reduce customer acquisition costs [8][28] - The company anticipates a revenue range of $43 million to $46 million for 2026, with a focus on stroke patients and recurring sources [24][25] - Management acknowledged challenges with Medicare Advantage payers but is encouraged by new payer contracts leading to more authorizations [17][41] Other Important Information - The company plans to activate the Myomo mobile app for patients and clinicians, which is expected to reduce costs associated with shipping laptops [12] - Cash burn was reported at $1.5 million in the fourth quarter, with operating cash flow negative at $1.1 million [22] Q&A Session Summary Question: What drove the increase in cost per pipeline ad in the MyoConnect program? - Management noted that the fourth quarter typically has higher advertising costs due to competition and has implemented changes to reduce costs moving forward [34][35] Question: Can you provide details on the O&P channel's performance? - The O&P channel had over $1 million in revenue with approximately 36 units ordered in the fourth quarter [39] Question: What are the assumptions for the U.S. O&P business in 2026 guidance? - Growth is expected in the O&P channel and international markets, while direct billing is anticipated to remain flat [40][41] Question: What is the current status of the pipeline and dropout rates? - The pipeline added 676 patients, slightly lower than previous quarters, with a dropout rate around 20% due to challenges with Medicare Advantage authorizations [45][56] Question: What is the expected gross margin for the upcoming quarters? - Management expects first quarter gross margin to be lower than the fourth quarter but aims to improve gross margin to the 70% range by the end of 2026 [59][61]

Financial Data and Key Metrics Changes - LifeMD reported a revenue growth of 25% year-over-year for 2025, totaling $194.1 million, with a gross margin of 85.7%, a slight decrease of 50 basis points compared to the previous year [22][23] - The fourth quarter revenue grew 4% year-over-year to $46.9 million, with a gross margin of 87.1%, an expansion of 570 basis points from the prior year [20][21] - GAAP net income for the fourth quarter was $19 million or $0.41 per share, including a one-time benefit from the sale of WorkSimpli, while the adjusted EBITDA for the fourth quarter was $4.8 million, up from $1.1 million in the previous year [21][24] Business Line Data and Key Metrics Changes - The weight management business is experiencing record patient acquisition, with new signups approaching 700 per day, and customer acquisition costs have declined sequentially [4][19] - The men's health segment, represented by the Rex MD brand, has approximately 215,000 active patients and returned to growth in the second half of 2025 [8][19] - Women's health is a significant focus, with investments in launching this offering, including the acquisition of Optimal Human Health MD and partnerships with recognized experts in the field [5][6] Market Data and Key Metrics Changes - LifeMD has over 322,000 active subscribers and is onboarding approximately 1,200 new patients daily, reflecting strong brand demand [3][19] - The company expects to cover over 220 million lives through expanded partnerships with third-party benefits partners by the end of Q2 2026 [15][16] Company Strategy and Development Direction - LifeMD is focused on leveraging artificial intelligence to enhance care delivery, diagnostics, and patient operations, with plans to launch an AI clinical decision support tool in the first half of 2026 [11][12] - The company aims to build a comprehensive virtual healthcare platform that integrates emerging AI capabilities and insurance benefits, enhancing patient experience and operational efficiency [16][17] - LifeMD is committed to expanding its pharmacy operations, which are now licensed in all 50 states, to support personalized compounded medications and improve margins [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing record demand in weight management and a diversifying specialty care platform [18] - The company anticipates returning to adjusted EBITDA profitability in Q2 2026, with revenue guidance for 2026 projected between $220 million and $230 million [25] Other Important Information - LifeMD's balance sheet is strong, with nearly $37 million in cash and no debt, allowing for aggressive investment in growth initiatives [3][24] - The company is seeing significant pipeline opportunities with large pharmaceutical companies, enhancing its attractiveness as a partner in the healthcare space [5] Q&A Session Summary Question: Demand for Wegovy pill and brand products - Management noted strong demand for the Wegovy pill since its launch in January, with nearly doubled new patient acquisition in the weight loss business [29] Question: Revenue model for Wegovy pill - The Wegovy pill is typically priced at $249 per month, with healthy gross margins around $100 per order [31] Question: Investments in Q1 2026 - The company plans to increase sales and marketing expenditures significantly, expecting to drive patient acquisition and revenue growth [34] Question: Drivers of revenue increase in 2026 - Growth will primarily come from subscriber count increases in the GLP-1 weight management business, women's health, and the Rex MD brand [37] Question: Women's health performance compared to other markets - Early performance in women's health shows higher intent and promising retention rates, with significant investments made in marketing and brand development [44][46] Question: Stickiness of Wegovy pill versus injectable - Initial retention rates for the Wegovy pill are better than the injectable, but long-term retention remains to be seen [54] Question: Comparison with competitors like Amazon - LifeMD differentiates itself through its own provider group and a comprehensive care platform, offering synchronous care and a range of specialty services [56][58]

Financial Data and Key Metrics Changes - In Q4 2025, total consolidated revenue was $61.8 million, a 31% increase compared to Q3 2025 [5][6] - Media margin reached $19.1 million, up 49% from Q3 2025 [5][6] - Adjusted EBITDA was $0.2 million, an increase of $3.6 million from Q3 2025, representing 0.3% of Q4 revenue [6][20] - Full year 2025 revenue totaled $208.8 million, reflecting an 18% decline versus 2024 [7] - Adjusted EBITDA loss for the full year was $9 million, representing -4.3% of revenue [7][20] Business Line Data and Key Metrics Changes - Commerce Media Solutions contributed 56% of total Q4 revenue, more than doubling from 26% in Q4 2024 [5][7] - Q4 2025 revenue from Commerce Media Solutions was $34.7 million, representing 101% growth compared to Q4 2024 [16] - For the full year, Commerce Media Solutions revenue totaled $82.3 million, a 99% increase over 2024 [7][17] Market Data and Key Metrics Changes - The U.S. commerce media market is projected to grow at a compounded average growth rate of 21% from 2023 to 2027, reaching a total market value of $100 billion by 2027 [9] - As of year-end 2025, Commerce Media Solutions is operating at an annual run rate of $105 million [9] Company Strategy and Development Direction - The company has pivoted towards the high-growth commerce media industry, leveraging its owned and operated marketplaces [4] - The focus is on maintaining a profitable contribution from owned and operated businesses while investing in commerce media strategic adjacencies [10][11] - The company aims to establish leadership credentials in the commerce media segment and expand its geographical presence [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong double-digit year-over-year growth throughout 2026 [6][25] - The company anticipates a return to year-over-year revenue growth, ending a multi-year period of managed top-line decline [25] - Management highlighted the importance of maintaining financial flexibility and liquidity to support growth in Commerce Media Solutions [24] Other Important Information - The company raised over $19 million in equity capital during 2025 to support growth initiatives [23] - A new financing agreement was established, improving financial flexibility [23] Q&A Session Summary Question: Can you talk about the AI-based functionality in your Rebuy partnership? - Management indicated that AI has been embedded in their solutions for a long time, driving better performance through proprietary first-party data [31][32] Question: Can you elaborate on the convergence between owned and operated and Commerce Media capabilities? - Management noted that the legacy business has valuable data that enhances their ability to drive unique audience sets across different media partners [35][36] Question: What are your expectations for 2026 regarding Commerce Media growth? - Management expects strong double-digit growth for Commerce Media, despite an early contract termination impacting projections [40][41] Question: How is the macro environment affecting advertiser acquisition? - Management reported no significant pushback on pricing from advertisers and noted that return on ad spend has remained stable [43][44] Question: What is the outlook for gross margins moving forward? - Management anticipates gross margins to expand into the mid-20s% by the latter half of 2026 [54] Question: How do you view the competitive landscape in the commerce media space? - Management acknowledged limited competition from larger players and emphasized their direct engagement with advertisers as a competitive advantage [56][57]

Financial Data and Key Metrics Changes - Coherus Oncology reported LOQTORZI net revenue of $40.8 million for the full year 2025, a 113% increase from $19.1 million in 2024 [27] - The company reduced its secured and convertible debt by over 90% from $480 million to $38.8 million by the end of 2025 [3][32] - SG&A expenses decreased to $23.6 million in Q4 2025 from $29.6 million in Q4 2024, marking the fourth consecutive quarter of flat or declining expenses [36] Business Line Data and Key Metrics Changes - LOQTORZI sales more than doubled in 2025 compared to 2024, with Q4 net revenue reaching $12.4 million, an 11% growth over Q3 [27][31] - The company launched LOQTORZI in 2024, targeting a $250 million addressable market for recurrent, locally advanced, or metastatic Nasopharyngeal Carcinoma [4] Market Data and Key Metrics Changes - The NCCN guidelines for NPC were updated in late 2024, positioning LOQTORZI as the only preferred treatment for recurrent and metastatic NPC, which stimulated growth in 2025 [28] - The company anticipates achieving peak market share of approximately 70% in the NPC market by 2028, equating to $175 million in annualized revenues [6][31] Company Strategy and Development Direction - Coherus has transitioned to focus on innovative oncology, particularly in overcoming immune resistance in cancer, following the acquisition of Surface Oncology [3] - The company aims to leverage LOQTORZI as a revenue generator while advancing its pipeline products, including tagmokitug and Casdozokitug, which are positioned for broad clinical utility [5][9] - Strategic partnerships, such as the collaboration with Johnson & Johnson, are seen as key to unlocking value and expanding market opportunities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in LOQTORZI's growth due to its unique position in the market and the compelling survival data presented at ESMO Asia [29] - The company is focused on educating oncologists about the benefits of LOQTORZI, particularly in light of new survival data that shows significant advantages over chemotherapy alone [30] - Management believes that the financial strategy, including reduced debt and growing revenues, positions the company well for future growth [40] Other Important Information - The company has made significant investments in commercial infrastructure to support LOQTORZI's growth, including expanding its sales force and enhancing data analytics capabilities [30] - Coherus is on track for initial data readouts from its clinical programs in mid-2026, which will inform future development strategies [18][26] Q&A Session Summary Question: Can you provide more color on the dynamic between new patient starts and repeat patients in 2025? - Approximately 25% of the business came from new patients in 2025, with expectations that this mix will shift slightly more towards new patients in the future [45] Question: What is the promotional sensitivity of LOQTORZI? - LOQTORZI is highly promotion sensitive, requiring continuous reminders to physicians about its benefits due to the rarity of NPC cases [48] Question: Can you discuss the additional investments in commercial infrastructure? - The company has expanded its field force by 15% and added inside sales representatives to target tier 2 accounts, along with investments in IT infrastructure to capture patient opportunities [49][50] Question: What are the plans for exploring a triple combination with TAGMO? - The initial step will be to evaluate the combination of tagmokitug and pasritamig before considering additional combinations [55] Question: How will data from ongoing trials be disclosed? - Data will be reported as it matures, either at congresses or through corporate disclosures, depending on the timing of patient accrual and scans [61] Question: What is the maturation timeline for the Casdozokitug frontline HCC study? - The maturation timeline is expected to be between 6 to 12 months, with ongoing data collection to inform future reports [68]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 totaled $8.6 million, a 36% increase from $6.3 million in Q4 2024 [21] - Full year revenue for 2025 was $32.4 million, compared to $26.9 million in 2024 [21] - Gross margin for Q4 and full year 2025 was approximately 50% and 53% respectively [22] - Operating loss for Q4 2025 was $5.6 million, compared to $7.6 million in Q4 2024 [23] Business Line Data and Key Metrics Changes - System revenue for Q4 2025 was $3.3 million, up from $1.4 million in the prior year [21] - Recurring revenue for Q4 2025 was $5.3 million, down from $9.4 million in Q4 2024 [21] - Full year system revenue was $10.2 million, compared to $8.6 million in the prior year [21] - Full year recurring revenue was $22.2 million, up from $18.3 million in the prior year [22] Market Data and Key Metrics Changes - The electrophysiology (EP) market is projected to grow from over $13 billion to $20 billion by 2030 [7] - The company views the congenital heart disease, pediatrics, and ventricular tachycardia market as a $2 billion opportunity [8] Company Strategy and Development Direction - The company aims to pioneer robotics in minimally invasive endovascular surgery, focusing on making its robot widely available and building an ecosystem of catheters [6] - The strategy includes four pillars: rapid installation of robots, building a catheter ecosystem, leveraging core technology for broader applications, and establishing a digital backbone [6] - The company plans to demonstrate the real-world value of GenesisX by establishing at least five active programs [12] Management's Comments on Operating Environment and Future Outlook - Management expects to deliver double-digit revenue growth in 2026, with quarterly revenue expected to ramp above $10 million in the latter half of the year [26] - The company anticipates a working capital benefit to cash flow in 2026 after significant investment in working capital in 2025 [27] - Management is confident in overcoming manufacturing challenges and is excited about the progress being made [12] Other Important Information - The company achieved regulatory approvals for the GenesisX robot and associated catheters in the U.S. and Europe [7] - Manufacturing challenges have been a focus, with plans to scale production of catheters significantly throughout the year [12] Q&A Session Summary Question: What is the goal of five GenesisX programs? - The company expects Genesis sales orders to continue at a similar pace as previous years, with mid-single digit numbers of Genesis systems sold annually [31] Question: What is included in the $3+ million revenue goal for Synchrony in 2026? - The revenue guidance focuses on capital sales of Synchrony systems, with several hospitals expected to standardize their EP labs on Synchrony [34] Question: How are catheters allocated to specific accounts given manufacturing constraints? - The company is managing demand and working through administrative efforts to ensure that as manufacturing ramps, they can meet the demand for MAGiC catheters [40] Question: What is the path to launching MAGiC with pulsed field ablation? - The company has conducted compatibility testing and is compiling a dossier for review by the EU notified body [46] Question: What is the expected operating expense for 2026? - The company expects operating expenses to remain stable year-over-year, with adjusted operating expenses projected to stay under $30 million [75]

Financial Data and Key Metrics Changes - Consolidated fee revenue grew 7% to $717 million, marking the fifth consecutive quarter of accelerating year-over-year growth [11] - Adjusted EBITDA increased by $9 million or 7.5% to $123 million, with an adjusted EBITDA margin of 17.2%, up 10 basis points [11] - Adjusted diluted earnings per share rose by $0.09 or 8% to $1.28 [11] - Total company new business, excluding RPO, grew 11%, with consulting and digital reaching all-time quarterly highs [11] Business Line Data and Key Metrics Changes - The interim portion of the PS&I solution grew 4%, benefiting from new business referrals [14] - Subscription and licensed new business grew 30% year-over-year, accounting for 43% of Digital's total new business [15] - Average hourly bill rates for consulting and interim grew by 2% and 15% respectively, indicating high client value [15] Market Data and Key Metrics Changes - Fee revenue in the Americas increased by 6%, driven by growth in executive search and RPO [16] - EMEA fee revenue grew 13%, with double-digit growth in executive search, consulting, digital, and PS&I [16] - APAC fee revenue slightly declined by 2%, with growth in executive search offset by weakness in other solutions [16] Company Strategy and Development Direction - The company is transitioning from "One Korn Ferry" to "We Are Korn Ferry," focusing on client centricity and deepening relationships with existing clients [7] - The strategy emphasizes expanding solutions offered to the top 4,500 clients, which represent 90% of revenue, with significant room for growth [8] - The company aims to leverage its Talent Suite as a foundational tool for business transformation, viewing it as a comprehensive solution rather than just a digital product [9] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing labor supply imbalance and the critical role of technology and AI in addressing workforce challenges [5] - The company remains confident in its outlook, expecting fee revenue in Q4 FY 2026 to range from $730 million to $750 million [16] - Management noted that the current economic environment remains challenging, but the diversified business model has allowed for resilience [10] Other Important Information - The board approved a 15% increase in the quarterly cash dividend to $0.55 per share, marking the seventh increase in six years [13] - Estimated remaining fees under existing contracts at the end of the quarter were $1.85 billion, up 11% year-over-year [12] Q&A Session Summary Question: How do you see AI impacting Korn Ferry? - Management believes AI will drive efficiency and create more opportunities, particularly in high-end labor markets [20][22] Question: Can the company grow in an environment of higher unemployment? - Management indicated that the diversified business model allows for growth even in challenging labor market conditions [26][27] Question: Will Talent Suite deepen existing relationships or expand into new ones? - Management sees Talent Suite primarily as a tool to deepen existing client relationships, with significant opportunities for expansion [30] Question: What drove the recent strengths in consulting new business? - The focus on transformation and AI readiness among clients has driven demand for consulting services [60] Question: What is the outlook for technology spending? - Management anticipates a balanced approach to capital deployment, with a potential shift towards stock buybacks [39][40] Question: What are the demand trends in the interim business? - Management noted a slight uptick in demand and emphasized the importance of high-end talent solutions [44] Question: How long until meaningful changes in client behavior are expected? - Management suggested it may take around 90 days to assess the impact of recent geopolitical events on client behavior [80]

Financial Data and Key Metrics Changes - The consolidated fee revenue grew 7% to $717 million, marking the fifth consecutive quarter of accelerating year-over-year growth [11] - Adjusted EBITDA increased by $9 million or 7.5% to $123 million, with an adjusted EBITDA margin of 17.2%, up 10 basis points [11] - Adjusted diluted earnings per share rose by $0.09 or 8% to $1.28 [11] - Total company new business, excluding RPO, grew 11%, with consulting and digital reaching all-time quarterly highs [11] Business Line Data and Key Metrics Changes - The interim portion of the PS&I solution grew 4%, benefiting from new business referrals [14] - Subscription and licensed new business grew 30% year-over-year, accounting for 43% of Digital's total new business [15] - Average hourly bill rates for consulting and interim grew by 2% and 15% respectively, indicating high client value [15] Market Data and Key Metrics Changes - Fee revenue in the Americas increased by 6%, led by growth in executive search and RPO [16] - EMEA fee revenue grew 13%, with double-digit growth in executive search, consulting, digital, and PS&I [16] - APAC fee revenue declined slightly by 2%, with growth in executive search offset by weakness in other solutions [16] Company Strategy and Development Direction - The company is focused on deepening relationships with existing clients, aiming to increase the number of solutions provided to the top 4,500 clients that represent 90% of revenue [7][17] - The "We Are Korn Ferry" initiative aims to unify the company's approach and enhance client centricity [7] - The company is leveraging its Talent Suite to provide data-driven insights for talent management, positioning itself as a leader in the evolving labor market [9][36] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing labor supply imbalance and the critical role of technology and AI in addressing workforce challenges [5][6] - The company expects fee revenue in Q4 FY 2026 to range from $730 million to $750 million, with adjusted EBITDA margins between 17.1% and 17.3% [16] - Management expressed confidence in the company's ability to continue driving top-line growth despite challenging market conditions [10][14] Other Important Information - The board approved a 15% increase in the quarterly cash dividend to $0.55 per share, marking the seventh increase in six years [13] - Estimated remaining fees under existing contracts at the end of the quarter were $1.85 billion, up 11% year-over-year [11] Q&A Session Summary Question: How do you see AI impacting Korn Ferry? - Management believes AI will drive efficiency and create more opportunities, particularly for high-end labor talent [20][22] Question: Can the company grow in an environment of higher unemployment? - Management noted the diversified business model allows for growth even in challenging labor market conditions [26][27] Question: Will Talent Suite deepen existing relationships or expand into new ones? - Management indicated that Talent Suite is primarily aimed at deepening existing client relationships [30] Question: What are the demand trends in the interim business? - Management reported a slight uptick in demand and emphasized the importance of high-end talent solutions [42][44] Question: How is the company approaching technology spending? - Management indicated a balanced approach to capital deployment, with a focus on technology investments [39][40] Question: What is the outlook for margin expansion? - Management expects margins to remain in the 16%-18% range, influenced by M&A execution and interim market opportunities [61] Question: How long until client behavior changes due to current economic conditions? - Management suggested it may take about 90 days to assess the impact of recent geopolitical events on client behavior [80]

Financial Data and Key Metrics Changes - Consolidated fee revenue grew 7% to $717 million, marking the fifth consecutive quarter of accelerating year-over-year growth [12] - Adjusted EBITDA increased by $9 million or 7.5% to $123 million, with an adjusted EBITDA margin of 17.2%, up 10 basis points [12] - Adjusted diluted earnings per share rose by $0.09 or 8% to $1.28 [12] - Total company new business, excluding RPO, grew 11%, with consulting and digital reaching all-time quarterly highs [12] Business Line Data and Key Metrics Changes - The interim portion of the PS&I solution grew 4%, benefiting from new business referrals [14] - Subscription and licensed new business grew 30% year-over-year, accounting for 43% of Digital's total new business [15] - Average hourly bill rates for consulting and interim grew by 2% and 15% respectively, indicating high client value [15] Market Data and Key Metrics Changes - Fee revenue in the Americas increased by 6%, led by growth in executive search and RPO [16] - EMEA fee revenue grew 13%, with double-digit growth in executive search, consulting, digital, and PS&I [16] - APAC fee revenue declined slightly by 2%, with growth in executive search offset by weakness in other solutions [16] Company Strategy and Development Direction - The company is focused on deepening relationships with existing clients, aiming to increase penetration of solutions among the top 4,500 clients that represent 90% of revenue [8][17] - The "We Are Korn Ferry" initiative aims to unify the company's approach and enhance client-centricity [7][17] - The company is leveraging its Talent Suite to provide data-driven insights for talent management, positioning itself as a leader in the evolving labor market [10][35] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing labor supply imbalance and the critical role of technology and AI in addressing workforce challenges [5][6] - The company expects fee revenue in Q4 FY 2026 to range from $730 million to $750 million, with adjusted EBITDA margins between 17.1% and 17.3% [16] - Management expressed confidence in the company's ability to grow despite economic uncertainties, citing a diversified business model [25][26] Other Important Information - The board approved a 15% increase in the quarterly cash dividend to $0.55 per share, marking the seventh increase in six years [13] - The company returned approximately $113 million to shareholders through share repurchases and dividends [13] Q&A Session Summary Question: How do you see AI impacting Korn Ferry? - Management believes AI will drive efficiency and create more opportunities, particularly in high-end labor markets [20][21] Question: Can the company grow in an environment of higher unemployment? - Management noted the diversified business model allows for growth even in challenging labor market conditions [25][26] Question: Is Talent Suite more likely to deepen existing relationships or expand into new ones? - Management indicated that Talent Suite is primarily aimed at deepening existing client relationships [28] Question: What drove the recent strengths in consulting new business? - The focus on transformation and AI readiness among clients has driven demand for consulting services [56][57] Question: What is the outlook for technology spending? - Management anticipates a balanced approach to capital deployment, with a potential shift towards stock buybacks [37][39] Question: What are the demand trends in the interim business? - Management noted a slight uptick in demand and emphasized the importance of high-end talent solutions [40][41] Question: How are sales cycles and client spending behavior changing? - Management reported no significant changes in sales cycles or client spending behavior despite macroeconomic conditions [46][49]