Financial Data and Key Metrics Changes - In 2025, McDonald's achieved system-wide sales of nearly $140 billion, reflecting a 5.5% increase in constant currency for the full year [4] - Global comparable sales rose by 5.7% in Q4, with U.S. comp sales increasing by 6.8%, driven by positive check and guest count growth [12][16] - Adjusted earnings per share for Q4 was $3.12, including a $0.10 benefit from foreign currency translation, with a 7% increase in adjusted earnings per share on a constant currency basis compared to the prior year [19] Business Line Data and Key Metrics Changes - The U.S. saw strong performance from the relaunch of Extra Value Meals (EVM), which improved units sold and value perception [15][16] - International operated markets reported a 5.2% increase in comp sales, with notable growth in the U.K., Germany, and Australia [16][17] - The international developmental licensed markets experienced a 4.5% increase in comp sales, led by Japan [19] Market Data and Key Metrics Changes - The U.K. market showed a turnaround with market share gains for the first time in over a year, driven by successful promotions [16] - Germany's performance was bolstered by the return of the Big Rösti burger and a Friends-themed marketing campaign [17] - Australia capitalized on breakfast innovations and the Grinch promotion, contributing to strong market performance [18] Company Strategy and Development Direction - McDonald's plans to accelerate new restaurant openings, targeting approximately 2,600 gross openings in 2026, aiming for 50,000 restaurants by the end of 2027 [5][32] - The company emphasizes a trifecta strategy focusing on value, marketing, and menu innovation to drive growth [6][10] - Investments in technology and digital initiatives are prioritized to enhance operational efficiency and support long-term growth [29][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in McDonald's ability to outperform competitors in challenging environments by focusing on controllable factors [28] - The company anticipates continued momentum in 2026, supported by strong marketing initiatives and value offerings [12][28] - Management acknowledged the importance of customer loyalty and engagement through the loyalty app, which has seen significant growth [35] Other Important Information - McDonald's capital expenditure for 2025 was $3.4 billion, slightly above expectations, with plans to increase to between $3.7 billion and $3.9 billion in 2026 [20][32] - The company aims for a net income to free cash flow conversion rate in the low- to mid-80% range for 2026, consistent with 2025 [32] Q&A Session Summary Question: U.S. sales trajectory in 2026 - Management highlighted the importance of the McValue program and EVM in driving sales growth, emphasizing the need for execution across value, marketing, and innovation [42][44] Question: Value strategy and franchisee sentiment - Management noted positive franchisee sentiment due to improved cash flows and business momentum, while emphasizing that pricing strategies are ultimately determined by franchisees [75][77] Question: Capital budget increase - The increase in capital budget is attributed to accelerated restaurant openings and adjustments for future growth, with a focus on securing new sites [56][58] Question: Customer frequency and loyalty program impact - Management acknowledged the loyalty program's role in increasing customer frequency and engagement, which is expected to drive sales [79]

Financial Data and Key Metrics Changes - In Q2, total revenue grew by 10% year-over-year, reaching $15.3 billion, with product revenue up 14% at $11.6 billion, while services revenue decreased by 1% to $3.7 billion [5][20] - Non-GAAP net income was $4.1 billion, up 10%, and non-GAAP earnings per share (EPS) was $1.04, up 11%, indicating operating leverage with EPS growth outpacing revenue growth [20][24] - Total remaining performance obligations (RPO) increased by 5% to $43.4 billion, with product RPO growing by 8% [22] Business Line Data and Key Metrics Changes - Networking revenue grew by 21%, driven by AI infrastructure and campus refresh, with double-digit growth across campus switching, data center switching, wireless, service provider routing, and enterprise routing [20][21] - Security revenue declined by 4%, impacted by the transition of Splunk from on-premise to cloud subscriptions, although new and refreshed products showed growth [22][82] - Collaboration revenue increased by 6%, led by growth in devices and cloud contact center solutions [22] Market Data and Key Metrics Changes - Product orders grew by 18% year-over-year, with service provider and cloud orders up 65%, public sector orders up 11%, and enterprise orders up 8% [8][23] - Orders from hyperscalers totaled $2.1 billion in Q2, marking significant growth compared to previous quarters [11] - Geographic product orders saw the Americas up 23%, EMEA up 11%, and APJC up 15% [23] Company Strategy and Development Direction - Cisco is focused on capitalizing on the AI infrastructure opportunity, with a target of over $5 billion in AI orders for fiscal 2026, emphasizing the importance of its Silicon One architecture [12][14] - The company is committed to returning value to shareholders, increasing its dividend to $0.42 per quarter, and returning $3 billion in capital during the quarter [6][24] - Cisco is enhancing its security portfolio with new products and has seen significant customer adoption, indicating a strategic pivot towards AI-driven solutions [15][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating industry-wide challenges, including rising memory prices, by implementing price increases and adjusting contractual terms [8][32] - The company anticipates continued strong demand for its solutions across all customer markets and geographies, positioning itself as a critical player in the AI transition [18][19] - Guidance for Q3 expects revenue between $15.4 billion and $15.6 billion, with a full-year revenue forecast of $61.2 billion to $61.7 billion [26] Other Important Information - Cisco's operating cash flow was $1.8 billion, down 19% due to tax payments and investments in AI infrastructure [24] - The company shipped its 1 millionth Silicon One chip and introduced new high-performance systems at Cisco Live Amsterdam [11][12] Q&A Session Summary Question: AI momentum and product mix - The company clarified that the $5 billion AI target does not include recently announced products like P200 and G300, with a consistent mix of 60% systems and 40% optics [29][31] Question: Gross margin decline - Management acknowledged that the gross margin decline was primarily due to product mix and memory prices, with plans to manage these through price adjustments and contractual revisions [32][33] Question: Networking revenue growth - Networking growth was attributed to strong performance across all segments, with double-digit growth in data center switching and campus networking [38][40] Question: Order rates and seasonality - The company noted that typical seasonality shows mid-single-digit declines in Q2 product revenue, but they experienced a 5% increase, indicating strong performance [40] Question: AI orders and revenue recognition - Management indicated that AI orders are nonlinear and subject to variability, with revenue recognition expected to ramp up in fiscal 2027 [66][70] Question: Security portfolio performance - The company reported strong adoption of new security products, with significant customer growth, despite short-term revenue headwinds from the Splunk transition [82][84]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was EUR 248 million, with full-year 2025 revenue totaling EUR 720 million, reflecting strong performance [22][23] - YORVIPATH revenue for Q4 was EUR 187 million, up from EUR 140 million in Q3, with full-year revenue reaching EUR 477 million [22] - SKYTROFA generated EUR 53 million in Q4, contributing to a total of EUR 206 million for the full year [22] - Operating profit for Q4 2025 was EUR 10 million, with operating cash flow of EUR 73 million [23] - The company ended 2025 with EUR 616 million in cash and cash equivalents, an increase from EUR 560 million at the end of 2024 [23] Business Line Data and Key Metrics Changes - YORVIPATH saw over 5,300 patients prescribed by nearly 2,400 unique healthcare providers in the U.S., indicating strong demand [8] - SKYTROFA maintained a market share of around 7% in the U.S. for pediatric growth hormone deficiency and adult growth hormone deficiency [11] - The company initiated a phase III basket trial for TransCon Growth Hormone in established growth hormone indications, expanding its market potential [12] Market Data and Key Metrics Changes - In the U.S., the insurance approval rate for YORVIPATH is approximately 70%, with expectations for gradual improvement [8][36] - YORVIPATH is commercially available in over 30 countries, with full reimbursement in four European countries and two international markets [9] - The company anticipates full commercial launches in 10 additional countries in 2026 [9] Company Strategy and Development Direction - The company aims to achieve operating cash flow of around EUR 500 million in 2026 and at least EUR 5 billion in annual product revenue by 2030, as part of its Vision 2030 strategy [7][19] - Ascendis Pharma is focused on expanding its pipeline of blockbuster product opportunities while strengthening its global commercial infrastructure [7][19] - The company plans to invest in label expansion for current products and develop new blockbuster opportunities in rare endocrine diseases [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of YORVIPATH, citing a significant opportunity as less than 5% of U.S. patients are currently on treatment [8] - The company is optimistic about the upcoming approval of TransCon CNP and its potential impact on revenue [24][57] - Management highlighted the importance of partnerships and collaborations to create additional value and support the development of differentiated product opportunities [17] Other Important Information - TransCon Growth Hormone is now approved in the U.S. for both adult and pediatric growth hormone deficiency, with ongoing trials to expand its indications [5][12] - The company is advancing its once-weekly TransCon PTH candidate for hypoparathyroidism, with expectations for significant market impact [6][21] Q&A Session Summary Question: Confidence level heading into the TransCon CNP PDUFA - Management expressed high confidence in the approval of TransCon CNP, similar to previous assurances regarding TransCon PTH [30] Question: Insurance approval rate for YORVIPATH - Management is satisfied with the current 70% approval rate and noted that reaching 100% is unlikely due to natural filtering in patient eligibility [36][39] Question: YORVIPATH pricing and net pricing trends - Management refrained from discussing net pricing but indicated a focus on revenue growth as the product matures in the market [44][45] Question: Usage of YORVIPATH among prescribers - Management noted broad uptake among prescribers, with some treating multiple patients, and emphasized the importance of awareness among patients [50] Question: Update on the COACH Trial for achondroplasia - Management reported positive feedback from regulatory meetings regarding the trial data and readiness to initiate phase III trials [52][53] Question: TransCon CNP launch expectations - Management anticipates a strong initial uptake for TransCon CNP, leveraging existing approvals to facilitate entry into international markets [57] Question: Strategy for commercializing TransCon CNP globally - Management highlighted the established infrastructure from YORVIPATH as a foundation for rapid global commercialization of TransCon CNP [73]

Financial Data and Key Metrics Changes - Q4 revenue grew 18.2% year-over-year in constant currency, with full-year 2025 revenue also growing 18.2% to $3.1 billion [6][21] - Q4 operating margin was 22.6%, while the full-year operating margin was 18.6%, reflecting strong operating profit growth [6][24] - Net income for Q4 was $163 million, or $3.09 per share, and for the full year, it was $516 million, or $9.70 per share [24] Business Line Data and Key Metrics Changes - Subscription revenue in Q4 grew 21% year-over-year, while services and other revenue increased by 12% [21] - The number of customers grew to over 288,000, with 9,800 net new customers added in Q4 [6][22] - Average subscription revenue per customer was $11,700 in Q4, up year-over-year [22] Market Data and Key Metrics Changes - Domestic revenue grew 17% year-over-year, while international revenue grew 19% in constant currency and 24% as reported, representing 49% of total revenue [21] - Net revenue retention increased to 105% in Q4, up from 101.8% in 2024, indicating strong customer expansion [22][24] Company Strategy and Development Direction - The company aims to leverage AI to drive growth for mid-market companies, focusing on making AI practical and actionable [10][14] - A new growth playbook for the AI era was launched, alongside AI-powered solutions to enhance marketing efforts [16] - The strategy includes accelerating upmarket growth and enhancing multi-hub adoption, with a focus on delivering both power and simplicity [13][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver durable growth, citing strong core fundamentals and emerging AI levers [29] - The company anticipates net revenue retention to grow by another 1-2 points year-over-year in 2026, driven by continued seat expansion and credit adoption [23][25] - Management highlighted the importance of customer context in AI adoption, emphasizing that the gap between AI output and outcomes is a significant challenge [33][35] Other Important Information - The Board of Directors authorized a share repurchase program of up to $1 billion, reflecting confidence in the business [7][24] - The company expects total as-reported revenue for Q1 2026 to be in the range of $862-$863 million, representing a 16% year-over-year increase in constant currency [26] Q&A Session Summary Question: Concerns about AI disruption in the software industry - Management addressed concerns about AI disruption, emphasizing the importance of customer context and the company's role as a system of record [31][33] Question: Guidance on revenue growth and net new ARR - Management explained that while guidance indicates a 16% growth, net new ARR growth is expected to outpace revenue growth, indicating potential acceleration [39][41] Question: Pricing impact on growth - Management clarified that pricing changes contributed to net revenue retention, but the primary driver was higher upgrade rates for seats [64][66] Question: Internal benefits from AI - Management highlighted that AI has transformed product development and operational efficiency, with significant improvements in support and sales processes [70][72] Question: Adoption among AI-native companies - Management noted that AI-native companies choose HubSpot for its platform value and context, which is essential for decision-making [76][78]

Financial Data and Key Metrics Changes - For the third quarter of fiscal 2026, revenue increased by 10.2% to $4 million from $3.6 million in the prior year quarter [10] - Gross profit for the quarter totaled $3.2 million, up 17.6% from $2.8 million for the prior year period, with a gross profit percentage improvement to 81.5% from 76.4% [11] - EBITDA for the quarter was $280,000, corresponding to $0.01 on a per-share basis, marking the third consecutive quarter of positive EBITDA [14] Business Line Data and Key Metrics Changes - Recurring revenue reflects strong market adoption of the primary subscription model, driven by the popularity of FDA-cleared cardiac monitor devices, particularly the next-generation Biotres Pro [9] - Technology fees accounted for 91.2% of the quarter's total revenue, indicating strong customer retention and quality of support services [11] - Sales of BioCore Pro, the next-generation cardiac monitoring device, continued to expand, contributing to improved utilization and accelerating the path towards breakeven [7] Market Data and Key Metrics Changes - The digital health app user base grew from 4,500 to over 44,000 in two years, with an expanding network of over 2,500 providers supporting 400,000 patients annually [10] - The focus on atrial fibrillation as a primary contributor to strokes remains significant, with early intervention opportunities improving patient outcomes and potentially delivering healthcare cost savings [10] Company Strategy and Development Direction - The company is focused on transitioning from reactive care to proactive management in chronic care markets, particularly in cardiovascular disease [3][4] - Biotricity aims to expand its geographic footprint and is pursuing regulatory approvals internationally while maintaining a primary focus on U.S. market expansion [5][12] - The strategic initiatives and technological advancements are designed to position Biotricity for sustained growth and profitability in 2026 [8][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued revenue growth and the expectation of turning net income positive in the current year [18] - The company is excited about the prospects for 2026, anticipating sustained growth in the top line and improvements in operational efficiencies [16][18] Other Important Information - Operating expenses for the third quarter were $2.8 million, a decrease of 4.2% compared to the same period last year [12] - The net loss attributable to common stockholders for the quarter was $1.1 million, an improvement from $1.3 million in the prior year period [15] Q&A Session Summary - There were no questions during the Q&A session, and the conference concluded with management expressing excitement about future prospects [17][19]

Financial Data and Key Metrics Changes - The company reported record revenue of $173 million in Q4 2025, representing a 23% year-over-year growth, the highest in over three years, and exceeding guidance [7][17] - Gross margins reached a record high of 64%, up from 57.5% in Q4 2024, driven by higher revenue and a balanced traffic mix [22][23] - Operating income was $21.2 million in Q4, with a net profit of $20.1 million, compared to a net loss of $2.4 million in Q4 2024 [24][26] - Free cash flow for Q4 was positive $8.6 million, a significant improvement from negative $7.9 million in Q4 2024 [26][27] Business Line Data and Key Metrics Changes - Network services revenue grew 19% year-over-year to $130.8 million, driven by strong traffic levels and upsell success [18][19] - Security revenue accelerated to 32% year-over-year growth, reaching $35.4 million, comprising 21% of total revenue [18][19] - Other products revenue increased by 78% year-over-year, primarily due to sales of compute products [18] Market Data and Key Metrics Changes - The company’s top 10 customers represented 34% of revenue, an increase from 32% in the prior quarter, while revenue from customers outside the top 10 grew 20% year-over-year [19] - The trailing 12-month net retention rate improved to 110%, up from 106% in the prior quarter [20] Company Strategy and Development Direction - The company is focused on accelerating growth and driving profitability through disciplined execution and a comprehensive suite of security products [6][9] - Investment in security and resilience is a priority, with new product launches enhancing customer engagement and driving multi-product adoption [10][11] - The company aims to capitalize on the increasing demand for AI-related services, positioning itself as a leader in edge intelligence [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, projecting Q1 2026 revenue growth of 18% and full-year 2026 revenue of $700 million to $720 million, reflecting 14% growth [15][34] - The company acknowledged potential macroeconomic and geopolitical uncertainties but remains optimistic about its market position and growth trajectory [51][34] Other Important Information - The company ended Q4 with record remaining performance obligations (RPO) of $353.8 million, growing 55% year-over-year [21] - Cash capital expenditures were approximately 8% of revenue in Q4, below the expected range due to timing of expenditures [28][30] Q&A Session Summary Question: Insights on AI traffic and its impact - Management noted an increase in traffic related to AI, with more requests processed through the Fastly network, indicating a positive trend for the business [37][39] Question: Factors driving performance gap between Fastly and peers - Management highlighted a focus on resiliency and performance improvements as key factors attracting more traffic [40] Question: Confidence in revenue guidance - Management attributed confidence to established customer relationships, RPO growth, and overall market trends [50][52] Question: Coupling of network services and security growth - Management acknowledged some coupling between network services and security demand but emphasized the independent growth of the security portfolio [80] Question: CapEx increase due to component costs - Management indicated that the increase in CapEx is driven by both growth needs and rising component prices, particularly in memory [63]

Financial Data and Key Metrics Changes - Total revenues for the full year 2025 were $216.1 million, a 9% increase compared to $198.8 million for 2024 [18] - Net product sales for Fanapt were $117.3 million, a 24% increase from $94.3 million in 2024 [18] - The company recorded a net loss of $220.5 million for 2025, compared to a net loss of $18.9 million in 2024 [21] - Operating expenses for 2025 were $367.3 million, up from $239.4 million in 2024 [24] Business Line Data and Key Metrics Changes - Fanapt's total prescriptions increased by 28% in 2025 compared to 2024 [19] - HETLIOZ net product sales were $71.4 million for 2025, a 7% decrease from $76.7 million in 2024 due to generic competition [20] - Ponvory net product sales were $27.4 million for 2025, a 2% decrease from $27.8 million in 2024 [21] Market Data and Key Metrics Changes - The total addressable market for the antipsychotic category is estimated at approximately $20 billion in 2025 [7] - The long-acting injectable antipsychotic market is projected to be in the $6 billion-$7 billion range for 2025 [12] Company Strategy and Development Direction - The company plans to initiate a dedicated phase III program for Nereus in the first half of 2026, targeting the GLP-1 agonist market [7] - Vanda aims to strengthen its psychiatric franchise with the anticipated approval of Bysanti for bipolar I disorder and schizophrenia [17] - The company is focused on expanding its commercial infrastructure and brand visibility through targeted sponsorships and marketing programs [26][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the commercial launch of Nereus and the potential for significant market opportunities in motion sickness [6] - The company expects total revenues of $230 million-$260 million from current marketed products in 2026, indicating continued growth [40] - Management highlighted the importance of addressing unmet medical needs in major depressive disorder and social anxiety disorder through innovative therapies [10][12] Other Important Information - The company recorded a one-time, non-cash income tax charge of $113.7 million for the valuation allowance against deferred tax assets [22] - Cash, cash equivalents, and marketable securities as of December 31, 2025, were $263.8 million, a decrease of $110.8 million compared to the previous year [26] Q&A Session Summary Question: Can you provide updates on Bysanti's FDA review and commercial strategy? - Management indicated optimism for an on-time approval and mentioned that commercialization would begin in Q3 2026 if approved [48] Question: What is the expected commercial infrastructure for Imsidolimab? - A small specialty sales force will be dedicated to marketing Imsidolimab, focusing on dermatologists and advocacy organizations [50] Question: Can you elaborate on promotional activities for Fanapt and Bysanti? - Current direct-to-consumer campaigns focus on Fanapt and Ponvory, with plans for a dedicated campaign for Bysanti upon its launch [52] Question: When will Nereus be commercially available? - Nereus is expected to be commercially available by late Q2 or early Q3 2026 [54] Question: What is the pricing strategy for Nereus? - While a specific price has not been communicated, it is expected to be at a premium compared to existing treatments for motion sickness [71]

Financial Data and Key Metrics Changes - AMC Networks generated consolidated revenue of $2.3 billion for 2025, with adjusted operating income of $412 million and a margin of 18% [15] - Free cash flow reached $272 million, exceeding previous forecasts, with expectations of at least $200 million for 2026 [4][14] - Domestic operations revenue decreased by 5% to $2 billion for the full year, with a 1% decline in the fourth quarter [15] Business Line Data and Key Metrics Changes - Streaming revenue became the largest single source of domestic revenue, growing by 12% for the full year and 14% in the fourth quarter, offsetting declines in linear affiliate revenue [16] - Domestic advertising revenue decreased by 15% for the year and 10% for the fourth quarter, primarily due to linear ratings declines [17] - International revenue decreased by 4% for both the year and the quarter, with advertising revenues growing by 6% for the full year [18] Market Data and Key Metrics Changes - The company ended 2025 with 10.4 million streaming subscribers, with subscriber numbers remaining flat compared to the previous quarter and year [16] - The advertising market saw a significant influx of digital inventory, impacting pricing negatively in the first half of 2025, but recovery was noted in the latter half [29] Company Strategy and Development Direction - AMC Networks is focusing on a streaming-first strategy, enhancing its content offerings and leveraging partnerships to drive growth [4][9] - The company aims to maintain a strong balance sheet while investing in high-quality programming and reducing gross debt [20][23] - The acquisition of RLJ Entertainment is expected to simplify the business structure and enhance operational clarity [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the return of The Walking Dead rights as a significant opportunity for monetization [28] - The company anticipates stable domestic operations subscription revenue in 2026, despite linear revenue declines [21] - Management highlighted the importance of maintaining a healthy cash position and the expectation of continued free cash flow generation [19][22] Other Important Information - The company repurchased approximately 850,000 shares of Class A common stock for about $7.5 million in the fourth quarter [19] - AMC Networks has extended the majority of its revolving credit facility to 2030, improving its maturity profile [18] Q&A Session Summary Question: Advertising performance and expectations for 2026 - Management acknowledged that advertising performance was below expectations in 2025 but expressed confidence in a recovery strategy for 2026, focusing on digital and streaming [26][29] Question: Ad contribution from streaming and FAST channels - Management noted that digital advertising is a significant portion of revenue, with strong performance in Q4, and emphasized the importance of cross-platform buying [33][35] Question: Subscriber universe and cash spend on content - Management discussed the positive trends in affiliate revenue and the importance of continuing to invest in premium programming while maintaining free cash flow [40][42]

Financial Data and Key Metrics Changes - Q4 revenue grew 18.2% year-over-year in constant currency, with full-year 2025 revenue also growing 18.2% to $3.1 billion [6][21] - Operating margin was 22.6% in Q4 and 18.6% for the full year, reflecting strong operating profit growth [6][24] - Net income for Q4 was $163 million, or $3.09 per share, and for the full year, it was $516 million, or $9.70 per share [24] Business Line Data and Key Metrics Changes - Subscription revenue in Q4 grew 21% year-over-year, while services and other revenue increased by 12% [21] - The number of customers grew to over 288,000, with 9,800 net new customers added in Q4 [6][22] - Average subscription revenue per customer was $11,700 in Q4, up year-over-year [22] Market Data and Key Metrics Changes - Domestic revenue grew 17% year-over-year, while international revenue growth was 19% in constant currency [21] - International revenue represented 49% of total revenue [21] Company Strategy and Development Direction - The company aims to lead with AI, focusing on making AI work for growth companies and reimagining marketing with new products [13][14] - The strategy includes accelerating upmarket growth and enhancing the agentic customer platform [18] - The company has authorized a $1 billion share repurchase program, signaling confidence in future growth opportunities [7][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver durable growth, driven by strong fundamentals and AI momentum [29] - The company anticipates net revenue retention to increase by one to two points year-over-year in 2026 [23] - Management highlighted the importance of customer context in driving AI adoption and outcomes [33][35] Other Important Information - The company reported a significant increase in multi-hub adoption, with 62% of new Pro Plus customers using multiple hubs [9] - The Core Seat adoption has expanded, with nearly 70% of customers utilizing enriched data by Q4 [19] Q&A Session Summary Question: Concerns about AI disruption in the software industry - Management addressed concerns about AI disruption, emphasizing the importance of customer context and the company's role as a system of record [31][33] Question: Guidance on revenue growth and net new ARR - Management explained that while guidance indicates a 16% growth, net new ARR is expected to outpace revenue growth, indicating potential acceleration [39][41] Question: Pricing impact on growth - Management clarified that pricing changes contributed to net revenue retention, but the primary driver was higher upgrade rates for seats [64][66] Question: Internal benefits from AI - Management highlighted that AI has transformed product development and operational efficiency, with significant portions of coding and support handled by AI [70][72] Question: Adoption among AI-native companies - Management noted that AI-native companies are choosing HubSpot for its platform value and context, which is essential for decision-making [76][78]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $119.5 million, a 5% increase from 2024, setting the stage for stronger growth in 2026 [5][14] - Non-GAAP gross margin for the year increased by 400 basis points to 39.6%, with expectations to reach the low-to-mid 40% range in 2026 [15][16] - Non-GAAP operating loss decreased by 14% to $13.3 million compared to Q4 2024, reflecting progress towards profitability [14] Business Line Data and Key Metrics Changes - Product revenue for Q4 was $19.9 million, down from $21 million in the previous year, with console sales growing 11% to $6.4 million [11][12] - Service and other revenue grew by 6% to $9 million, while recurring revenue from consumables and services was $22.5 million, showing sequential growth [12][15] - Product gross margin exceeded 50% for the first time, reaching 50.7%, while service gross margin increased to 25.6% [13] Market Data and Key Metrics Changes - Tablo is now utilized in approximately 1,000 acute care sites across the U.S., with significant partnerships established with major health systems [4][18] - The company reported a strong pipeline of opportunities, with diversification across new and existing customers, including critical access hospitals [31][32] Company Strategy and Development Direction - The company aims to enhance its technology leadership with the FDA clearance of the next-generation Tablo platform, which includes advanced cybersecurity features [8][9] - Focus on insourcing dialysis services is expected to drive growth, with a strong emphasis on clinical and operational benefits [6][18] - The company plans to continue investing in innovation and customer-centric improvements to enhance patient care [60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2026, anticipating revenue growth of 5%-9% and continued operating leverage [16][17] - The company is confident in its cash position, with $173 million available to support operations and reach profitability [51] - Management highlighted the importance of cybersecurity in healthcare, viewing it as a critical patient safety issue that will drive interest in the new Tablo platform [9][23] Other Important Information - The company reduced cash usage by $70 million in 2025 and narrowed its operating loss, indicating improved financial health [6][14] - The next-generation Tablo platform is expected to launch in Q2 2026, with a focus on enhancing customer experience and clinical outcomes [9][66] Q&A Session Summary Question: What advantages will the Next-Gen Tablo offer and how will it affect market opportunities? - Management indicated that the new platform's compliance with FDA cybersecurity standards will attract interest from hospitals concerned about device security, potentially shortening sales cycles [22][24] Question: What is the current state of the sales force and deal pipeline? - Management reported stability in the sales organization and a healthy pipeline, with diversification across hospital sizes and types [26][30] Question: Can you quantify pipeline growth entering 2026? - Management noted that pipeline growth entering 2026 is consistent with previous years, driven by emerging clinical value propositions [41][42] Question: What is the timeline for achieving 50% gross margin? - Management confirmed that reaching 50% gross margin is within planning horizons, though no specific year was provided [50][51] Question: What is the current state of hospital capital budgets? - Management observed no significant changes in capital spending among customers, maintaining a positive outlook for 2026 [52]