Financial Data and Key Metrics Changes - Consolidated revenue growth of 5.1% in Q4 2025 compared to the prior year, with full-year revenue at $724 million, slightly up year-over-year [4][9] - GAAP net income of $3.9 million and EPS of $0.12 in Q4, with non-GAAP net income of $7.9 million and EPS of $0.20 [7][24] - Adjusted EBITDA of $24.8 million in Q4, up 18.2% year-over-year, representing a 13.7% margin, the highest ever for Q4 [7][8] - Full-year Adjusted EBITDA of $91.1 million with a margin of 12.6%, exceeding previous outlook [10] Business Line Data and Key Metrics Changes - Aerospace and defense business grew by $4.5 million in Q4, a 21.9% increase year-over-year, while power generation increased by $3.3 million, representing 33.2% growth [5] - Laboratory business grew by 61% in Q4 compared to the prior year, driven by improvements in aerospace and defense operations [6] - Industrial and infrastructure verticals also saw growth of 6.7% and 26.8% respectively [5] Market Data and Key Metrics Changes - International segment delivered nearly 6% revenue growth for the year, driven by strong performance in industrials and aerospace and defense markets [9] - Demand in private space and defense industries contributed positively to growth in aerospace and defense [6] Company Strategy and Development Direction - The company is focused on expanding its share wallet and transforming services into comprehensive, integrated solutions [11] - Investments in data solutions and AI capabilities are prioritized to enhance analytics and insights for customers [32] - The strategic plan, Vision 2030, aims to build operational leverage through efficiency and productivity gains [18] Management's Comments on Operating Environment and Future Outlook - Management views 2026 as an opportunistic year for executing strategic plans and unlocking inherent value [32] - The company anticipates full-year revenue between $730 million and $750 million for 2026, with Adjusted EBITDA between $91 million and $93 million [34] - Management remains cautious about the oil and gas market but sees strong growth potential in aerospace and defense, infrastructure, and power generation [56] Other Important Information - The company plans to maintain elevated capital expenditures at approximately 4.5% of revenue to expand and upgrade capacity [32][34] - Free cash flow for the full year of 2025 was $3.8 million, down from $27.1 million in the prior year, attributed to elevated DSO and restructuring activities [26][30] Q&A Session Summary Question: Insights on aerospace and defense backlog and capacity - Management has good visibility into customer demand and is expanding capacity to meet it, with a focus on removing constraints [41][43] Question: Plans for tuck-in acquisitions in aerospace and defense - Management believes organic expansion will yield higher returns than acquisitions at this time, focusing on building capabilities internally [45][46] Question: Impact of geopolitical events on operations - No material direct impact observed, but management is monitoring developments closely [48][49] Question: Customer wins and bid activity in growth segments - Management is expanding offerings to existing oil and gas customers while also winning new contracts in infrastructure and power generation [50][51] Question: Factors influencing revenue guidance for 2026 - Revenue performance is heavily dependent on oil and gas market conditions, with a focus on diversifying to reduce dependency [56][57] Question: Long-term organic revenue growth and EBITDA margin expectations - The company targets a CAGR of about 5% through 2030, with aspirations for EBITDA margins to reach 15% [89]

Financial Data and Key Metrics Changes - Ultrapar reported a record operational cash flow generation of BRL 5.5 billion, leading to a leverage of 1.7 times, which would have been 1.5 times without the anticipated dividend payment of BRL 1.1 billion [4][12] - Adjusted EBITDA for Q4 2025 was BRL 1.6 billion, a 34% decrease year-over-year, while for the full year, it reached BRL 6.8 billion, a 2% increase compared to 2024 [8] - Net income for Q4 was BRL 256 million, a 71% decrease year-over-year, but would have been BRL 439 million, reflecting a 49% increase without non-recurring effects [9][10] Business Line Data and Key Metrics Changes - Ipiranga's volume grew 7% in Q4 2025 compared to 2024, with a 1% increase in sales volume for the year [13] - Ultragaz's volume sold decreased by 2% in Q4 and for the full year, reflecting competitive market dynamics [17] - Ultracargo's average installed capacity increased by 6% in Q4, but cubic meters sold decreased by 5% in the quarter and 9% for the year [18][19] Market Data and Key Metrics Changes - Ipiranga's adjusted EBITDA for Q4 was BRL 1.2 billion, a 37% decrease year-over-year, while recurring adjusted EBITDA increased by 26% [14] - Hidrovias handled volume increased by 65% in Q4 and 22% for the year, with recurring EBITDA for the quarter at BRL 160 million, a significant improvement from the previous year [21] Company Strategy and Development Direction - The company announced an investment plan for 2026 of up to BRL 2.6 billion, focusing on expansion, maintenance, safety, and efficiency [6][23] - The strategic focus includes operational efficiency, financial discipline, innovation, and sustainable growth, with a commitment to value creation [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a global scenario marked by geopolitical tensions and economic volatility but expressed confidence in seizing opportunities [6] - The company expects continued growth in volumes and margins, particularly in Ipiranga, despite challenges in the market [15][26] Other Important Information - Ultrapar paid BRL 1.4 billion in dividends in 2025, with a dividend yield of 7% [5] - The company completed the migration of Ultracargo's SAP system to the SAP S/4HANA platform, enhancing operational efficiency [6] Q&A Session Summary Question: What were the main reasons for stronger margins in December for Ipiranga? - Management noted improved regulatory conditions and a positive trend in the market landscape, indicating that January's market share pressure was likely a one-off effect [25][26] Question: What is the outlook for Ultragaz's volume trends in 2026? - Management indicated no major changes to the plan, focusing on operational excellence and maintaining performance in key segments [28][30] Question: Why was Ipiranga's CapEx lower than planned? - Management explained that Ipiranga had previously undergone a cycle of higher CapEx and that some investments were postponed, particularly in technology [33][34] Question: What is the strategy regarding capital allocation and potential sales? - Management emphasized a disciplined approach to cash generation, focusing on either expanding the company or distributing dividends, with no current plans for sales [35][36] Question: What are the next steps in the regulatory agenda to combat the irregular market? - Management highlighted the need for enforcement of new legislation and ongoing efforts to improve competitiveness in the market [36][37]

Financial Data and Key Metrics Changes - In 2025, total product sales reached $27.6 million, with a net operating profit of $1.6 million, an improvement of $3.3 million compared to 2024, primarily due to expanded gross margins [4][5] - Product sales for Q4 2025 were $7.6 million, a decrease of 1.6% compared to Q4 2024, with domestic sales growing 8.7% to $7 million, while international sales declined to about $600,000 [6][8] - Gross margin for Q4 2025 was 38%, up from 37% in Q4 2024, and for the full year, gross margin increased to 41% from 30% in 2024 [9][10] - Operating expenses increased to $3 million in Q4 2025 from $2.2 million in Q4 2024, and for the full year, they rose to $9.8 million from $9.6 million [11] Business Line Data and Key Metrics Changes - The product mix showed a shift towards Tri-Shield, indicating new customer acquisition and migration from lower-priced Dual-Force products [9] - The company experienced a significant increase in gross margins due to higher manufacturing volumes and efficiencies, alongside product price increases [10][21] Market Data and Key Metrics Changes - The U.S. market for calf scours prevention products saw producers spending approximately $93 million in 2025, a 14% increase from 2024 [18][19] - Despite the growth, about 55% of calves still do not receive any treatment for scours, indicating a substantial addressable market exceeding $200 million in the U.S. alone [19] Company Strategy and Development Direction - The company has pivoted to focus on maximizing shareholder value from the First Defense franchise, pausing investment in the Re-Tain product line to concentrate on the scours market opportunity [5][20] - Manufacturing capacity has been increased from approximately 3 million units in 2023 to 4.6 million units in 2025, with plans to further enhance capacity to between 5 and 6 million units [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth due to addressing manufacturing capacity and gaining revenue share against major competitors [20] - The company aims to enhance commercial activities and customer outreach, focusing on growth in the top line for 2026 and 2027 [27] Other Important Information - A non-cash write-down of approximately $650,000 was taken in Q3 and Q4 2025, primarily related to inventory, impacting gross margins [10][12] - The company ended 2025 with $3.8 million in cash and increased working capital from $10.6 million at the end of 2024 to $13 million [14] Q&A Session Summary Question: What are the biggest challenges ahead for the company to achieve its goals? - Management identified challenges related to planned yield increases and capacity expansion, focusing on proactive customer outreach for growth [26][27] Question: Will there be any additional Re-Tain write-downs in 2026? - Management does not anticipate large write-downs for Re-Tain assets, with a modest salvage value booked [28] Question: How much of the 2025 revenue is considered recurring? - Management noted high customer loyalty and satisfaction, indicating a strong potential for recurring revenue, though exact churn calculations are currently difficult [29][31]

Financial Data and Key Metrics Changes - Operating expenses net for 2025 decreased to approximately $13.8 million from approximately $22 million in 2024 [16] - Total operating expenses net for Q4 2025 were approximately $3.2 million, down from approximately $4.3 million in Q4 2024 [16] - Revenues for 2025 totaled approximately $3.9 million, a decrease from approximately $5.6 million in 2024 [21] - Net loss for 2025 was approximately $7.8 million compared to approximately $18.1 million in the previous year [30] - Operating loss for Q4 2025 was approximately $5.2 million, an increase from approximately $3.5 million in Q4 2024 [26] Business Line Data and Key Metrics Changes - Lavie Bio Ltd. completed the sale of the majority of its operations, significantly reducing its operational expenses [17] - Biomica scaled down operations and entered into a license agreement with Lishan Pharmaceuticals for its lead oncology candidate [17] - AgPlenus integrated into core operations, focusing on novel ag chemical products [18] - Casterra Ag ceased operations in Kenya and recorded an impairment of approximately $2.2 million related to its seed inventory [18][22] Market Data and Key Metrics Changes - The demand for castor seeds significantly declined, impacting Casterra's operations [18] - The agriculture industry has faced negative performance, affecting collaboration willingness, but there are signs of improvement [40] Company Strategy and Development Direction - The company has focused on two high-impact markets: human health and agriculture, utilizing ChemPass AI for drug development and ag chemicals [8] - A strategic transformation was initiated to streamline operations and enhance long-term value creation [6] - The mission is to become the partner of choice for small molecule discovery and optimization in pharma and agriculture [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of reduced expense levels and the potential for cash inflow from Lavie Bio and Biomica [35] - The company anticipates significant future collaborations with technology and pharmaceutical companies, which could serve as catalysts for growth [36][40] Other Important Information - The company held consolidated cash equivalents of approximately $13 million as of December 31, 2025 [20] - Financing income net for 2025 was approximately $0.6 million, a decrease from approximately $4 million in the previous year [26] Q&A Session Summary Question: Can you speak to the terms of the BMC128 license agreement with Lishan Pharmaceuticals? - The agreement includes milestone payments based on advancing BMC128 and revenue sharing from the end product [33] Question: Can you speak to the magnitude of cash potentially coming in from Lavie Bio and Biomica? - Expected cash from Lavie Bio and Biomica will satisfy operational needs for at least mid-next year [35] Question: What are the expected investor catalysts over the coming 12 months? - Three types of catalysts were identified: technology collaborations, additional pharma collaborations, and ag chemical collaborations [36][40]

Financial Data and Key Metrics Changes - The company reported total revenue growth of 9.8% for the full year 2025, reaching $1.98 billion, with organic average daily sales growth of 3.6% [8][28] - Adjusted EBITDA for the year was $175 million, representing 8.9% of sales, down from 9.7% in 2024, primarily due to sales mix shifts and increased employee-related costs [28][30] - Fourth quarter revenues were $482 million, a slight increase of 0.2% year-over-year, with adjusted EBITDA of $35.4 million or 7.4% of sales [29][30] Business Line Data and Key Metrics Changes - Gexpro Services achieved full-year organic average daily sales growth of 12.3%, with total ADS growth over 13%, driven by strength in aerospace, defense, and technology markets [11][35] - Lawson Products saw average daily sales increase by 2.7% in the fourth quarter, although organic average daily sales declined by 1.2% for the year due to lower military customer sales [15][32] - TestEquity Group reported full-year sales of $783.2 million, with average daily sales growth of 2%, driven primarily by test and measurement and rentals [24][36] Market Data and Key Metrics Changes - Demand remained healthy across aerospace, defense, semiconductor-related technology, and renewables, although there was a noted softening in renewables in North America during the fourth quarter [9][11] - The Canadian segment reported full-year sales of $221.4 million, up significantly due to the Source Atlantic acquisition, despite facing market softness in manufacturing end markets [33][22] Company Strategy and Development Direction - The company is focused on long-term value creation through significant investments in capabilities and talent, aiming to enhance competitive positioning and performance across North American and global platforms [5][10] - There is a commitment to operational excellence, disciplined capital allocation, and prioritizing high-margin businesses to drive sustainable cash flow generation [41][42] - The company is also investing in digital and AI-enabled capabilities to improve operational efficiency and customer responsiveness [41][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2025, including macroeconomic pressures and a dynamic pricing environment, but expressed confidence in the company's long-term vision and resilience [4][6] - The leadership team expects improved profitability performance in 2026, despite some anticipated margin pressures in the first quarter due to ongoing investments [10][45] - There is a focus on enhancing customer experience and leveraging data-driven insights to guide decision-making and improve service delivery [42][43] Other Important Information - The company generated $84 million in cash from operations for the year, similar to 2024, and ended the year with total available liquidity of $469 million [39][38] - The board authorized an increase to the stock repurchase program, reflecting a commitment to returning value to shareholders [40][39] Q&A Session Summary Question: Can you confirm the sales pacing year-to-date? - Management confirmed that sales are up year-over-year in January and February, with average daily sales showing low single-digit growth compared to the previous year [51][57] Question: What are the expectations regarding margins for the first quarter? - Management indicated that the first quarter is expected to experience margin degradation compared to the previous year, but improvements are anticipated in the second and third quarters [67][76] Question: How are tariffs impacting the business? - Management stated it is too early to determine the direct impact of recent tariff news but is actively evaluating the situation and its potential effects on pricing and costs [93][94]

Financial Data and Key Metrics Changes - The company reported a record revenue growth of 22% in Q4 2025, with total revenue reaching $153 million, driven by strong performance in debit and credit portfolios and contributions from Arroweye [5][29] - For the full year, revenue increased by 13%, with Adjusted EBITDA growing by 5% despite $4 million in tariff expenses [6][33] - Fourth quarter Adjusted EBITDA rose 34% to $29.4 million, with margins increasing by 170 basis points to 19.2% [5][32] Business Line Data and Key Metrics Changes - The debit and credit segment revenue increased by 40%, with organic growth of 20%, driven by contactless card sales and instant issuance solutions [29] - Prepaid revenue declined by 27% compared to the previous year, reflecting a transition in the prepaid market [30][23] - Integrated PayTech segment grew revenue nearly 20%, contributing significantly to overall profitability [24][39] Market Data and Key Metrics Changes - The U.S. cards in circulation showed a compounded annual growth rate of 7.5% over the past three years, indicating a healthy market for payment cards [38] - The closed-loop prepaid market is expected to grow significantly, with volumes projected to be more than five times larger than the open-loop market [23][48] Company Strategy and Development Direction - The company aims to evolve into a payment technology provider, focusing on three growth pillars: a proprietary technology platform, a broad marketable base, and a track record of delivering innovative payment solutions [10][12] - A new organizational structure has been announced to enhance focus on customer needs and digital capabilities, with a reorganization of reporting segments to include Secure Card Solutions, Prepaid Solutions, and Integrated PayTech [17][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver growth in 2026, projecting high single-digit revenue growth and continued investment in strategic initiatives [40][42] - The company anticipates challenges from tariffs and a slow start in the prepaid market but remains optimistic about long-term growth prospects [41][43] Other Important Information - The company generated $60 million in cash from operating activities for the year, with Free Cash Flow increasing to $41 million [6][34] - Significant capital allocation included the acquisition of Arroweye for $46 million and investments in technology to support growth [35][36] Q&A Session Summary Question: How are sales cycles different in the closed-loop market? - Management noted that the closed-loop market has a slightly accelerated sales cycle due to existing relationships with major program managers, allowing for quick entry and contract wins [48][49] Question: How does the TDS announcement impact growth guidance for 2026? - Management indicated that the closed-loop opportunity is expected to contribute positively to growth, despite current market choppiness [50][51] Question: Is there potential for acquiring additional software solutions for fraud prevention? - Management confirmed they currently resell a major fraud solution using AI and are open to acquiring proven software that can adapt to changing fraud landscapes [56][57] Question: Can you comment on the growth with large issuers? - Management highlighted an increased capture rate with large issuers, contributing positively to the growth in the debit and credit segment [62][64] Question: What are the expectations for headcount growth in 2026? - Management indicated that hiring will continue primarily in go-to-market and technology areas, with expectations for mid to high single-digit growth consistent with revenue [66][68] Question: What is the outlook for CapEx in 2026? - Management expects CapEx to remain similar to 2025 levels, with a shift from physical to technology investments [71][72] Question: What is the expected tax rate and its impact on cash flow? - Management projected a tax rate between 30% and 35% for 2026, with a slight benefit from recent tax changes impacting cash flow [76][80]

Financial Data and Key Metrics Changes - For Q4 2025, net sales were $104.7 million, a decline of $1.8 million compared to Q4 2024, while full-year sales were $422.2 million, down $42.1 million year-over-year [9][25][27] - Adjusted operating income for Q4 was $3.3 million, up from $2.4 million in the prior year, and for the full year, it was $14.2 million, an increase of $9.1 million from $5.1 million in 2024 [10][27] - Adjusted EBITDA for Q4 was $12.9 million, up from $12.1 million a year ago, and for the full year, it was $49 million compared to $48.3 million in the prior year [11][27] Business Line Data and Key Metrics Changes - In the Power Solutions segment, Q4 net sales were $45.5 million, up 14.9% year-over-year, driven by new program launches in electrical and defense business [29] - The Mobile Solutions segment saw Q4 net sales of $59.3 million, down from $63.8 million, primarily due to the rationalization of dilutive business [31] - Power Solutions adjusted EBITDA for Q4 was $6.4 million, an increase of $0.8 million from the previous year, while Mobile Solutions adjusted EBITDA was $10 million, reflecting successful shedding of unprofitable sales [30][33] Market Data and Key Metrics Changes - The global automotive market is expected to grow slightly by 2% in 2026, with specific growth outlooks varying by region [17] - The commercial vehicle market is anticipated to improve in 2026, supported by strong orders and a forthcoming EPA mandate [18] - The defense electronics market is growing strongly, with increased production capacity to meet demand from customers like Raytheon [47] Company Strategy and Development Direction - The company is shifting its sales profile towards higher value end markets and capabilities, moving away from low-value commodity automotive parts [6] - A record level of program launches is expected in 2026, with a pipeline of over $800 million in high-quality prospects [7][35] - The company aims to achieve adjusted gross margins of 20% and is focusing on cost rationalization programs to offset inflation [14][38] Management's Comments on Operating Environment and Future Outlook - Management noted that volatility remains high in markets due to global supply chain issues, tariffs, and geopolitical unrest [8][20] - The company is optimistic about returning to net sales growth in 2026, with a forecast of $445 million to $465 million in sales [50][51] - Management emphasized the importance of tactical maneuvering in response to ongoing market volatility and supply chain disruptions [21] Other Important Information - The company has completed the majority of its transformation plan, including plant closures and workforce reductions, which are now behind them [6][76] - The company is looking at financial and strategic options to address its capital structure, which includes high levels of debt [49] Q&A Session Summary Question: Can you expand on the data center end market opportunity? - The company is focused on high precision products for data centers, including watertight couplings and cable assemblies, with an immediate ramp-up expected due to high demand [57][59] Question: What does the roadmap for sustaining sales growth in 2026 look like? - The company plans to double its capital spending, with growth primarily driven by new wins that have already been secured [61][62] Question: What is the cadence of ramp in 2026 in terms of revenue? - The company expects to see between $20 million and $25 million of revenue from new launches in 2026, alongside continued revenue from programs launched in 2025 [68] Question: What sort of CapEx activity are you planning? - The bulk of CapEx will be directed towards growth programs, with over $15 million allocated for launching new business [70] Question: How much visibility do you have beyond Q1? - The company has a healthy backlog and expects Q2 to be consistent with sales guidance, although firm releases for Q3 and Q4 are not yet available [71][72]

Financial Data and Key Metrics Changes - Revenue in Q4 was approximately $352 million, reflecting an increase of 50% year-over-year on an as-reported basis, primarily due to the acquisition impact. On a pro-forma basis, there was a year-over-year decline of 17% in Q4 [15][16] - Ex-TAC gross profit in Q4 was $152 million, an increase of 122% year-over-year on an as-reported basis, but a decline of 19% on a pro-forma basis [17] - Adjusted EBITDA in Q4 was $37 million, and adjusted free cash flow was approximately $3 million in the fourth quarter and $6 million for the year [20] Business Line Data and Key Metrics Changes - CTV (Connected TV) revenue crossed the $100 million annual mark with growth hitting 55% in Q4, indicating strong performance in home screen placements [5][6] - Sales to enterprise customers saw a 300% increase compared to Q3, although it still represented only a few million dollars per quarter [5][6] Market Data and Key Metrics Changes - The U.K. market showed stabilization, with improvements noted in Q1, while the U.S. market is expected to benefit from new leadership and a positive pipeline [16][33] - The company experienced a headwind of approximately $20 million of Ex-TAC due to quality cleanup, impacting year-over-year comparisons primarily in H1 2026 [17][40] Company Strategy and Development Direction - The company aims to build a best-in-class digital advertising platform, focusing on premium marketplace sustainability and moving away from low-quality revenue [4][5] - The strategy for enterprise advertisers is built on three pillars: leading with CTV offerings, deepening relationships with agencies, and scaling performance business [7][10] - The company is investing in AI to enhance performance and productivity, aiming to simplify campaign setups and optimize outcomes [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth by Q4 2026, citing positive indicators from Q4 and early Q1 [14][16] - The company acknowledges the uncertainty of the overall environment but remains focused on executing its strategic plan and improving profitability [21][22] Other Important Information - The company recorded a non-cash impairment of around $350 million in goodwill due to declines in share price and market capitalization, which does not impact liquidity or cash flows [18][19] - The restructuring is expected to save approximately $35 million-$40 million annually [19] Q&A Session Summary Question: Sales force staffing and exclusive deals with Samsung and LG - Management is confident in the current sales force and leadership team, with exclusive relationships established in certain geographies with LG and Samsung [24][25] Question: Stabilization of the business and organizational changes - Management noted improvements in Q1 and expressed confidence in the current team and execution plan [30][35] Question: Assumptions behind full year EBITDA guidance - Guidance for approximately $100 million of EBITDA does not imply full year Ex-TAC growth, with expectations for growth by Q4 [38][40] Question: Specific ad verticals strength or weakness - No material verticals were highlighted, with some weakness in CPG and automotive, and strength in health and finance [44][45] Question: Google TV opportunity and inventory cleanup - The Google TV addition is seen as a significant growth opportunity, and the inventory cleanup process is largely behind the company, leading to a healthier network [48][51]

Financial Data and Key Metrics Changes - The net loss for Q4 2025 was $27.4 million or $0.27 per share, compared to a net loss of $23.2 million or $0.33 per share in Q4 2024 [31][32] - R&D expenses in Q4 2025 were $18.4 million, down from $19.8 million in the same period of 2024, primarily due to the end of the phase 2b trial [30] - G&A expenses increased to $10.5 million in Q4 2025 from $5.1 million in Q4 2024, driven by a one-time charge related to executive transition [31] Business Line Data and Key Metrics Changes - The company is focused on advancing pemvidutide for liver diseases, particularly MASH, with promising results from phase 2 trials indicating strong therapeutic potential [6][9] - The phase 2 MASH study showed early resolution at 24 weeks and anti-fibrotic activity at 48 weeks, with significant improvements in liver fat and inflammation markers [9][17] Market Data and Key Metrics Changes - Market research indicated a high unmet need for therapies addressing tolerability issues in MASH patients, with many physicians seeking alternatives to existing treatments [25][26] - Over 70% of healthcare professionals surveyed expressed a high likelihood of prescribing pemvidutide, indicating strong market interest [28] Company Strategy and Development Direction - The company aims to strengthen its foundation for the advancement of pemvidutide and has enhanced its leadership team with expertise in liver disease and clinical development [11] - The phase 3 trial for pemvidutide is set to begin this year, with a focus on addressing both hepatic and metabolic drivers of MASH [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of pemvidutide, especially after receiving FDA Breakthrough Therapy designation for MASH [10] - The company is preparing for the phase 3 trial while ensuring financial stability, with a cash position of approximately $340 million expected to support operations into 2028 [33][34] Other Important Information - The company has received valuable guidance from the FDA regarding the phase 3 trial design, which will include both biopsy-confirmed and non-invasive test cohorts [20][22] - The phase 2 trials for AUD and ALD are progressing well, with top-line data expected from the AUD trial in Q3 2026 [23][24] Q&A Session Summary Question: Can the FDA's new single pivotal framework save costs for the phase 3 trial? - Management indicated that the current approach remains unchanged and the single trial path for accelerated approval is still valid [38] Question: What are the statistical plans for the phase 3 trial? - The phase 3 trial is powered for two primary endpoints, with a sample size of around 990 patients, ensuring sufficient power for approval [41] Question: What is the FDA's stance on using non-invasive tests as registrational endpoints? - The FDA deemed it premature to consider non-invasive tests for approval, focusing instead on biopsy-driven endpoints [48] Question: What are the key elements locked in for the phase 3 protocol? - The protocol is nearing finalization, with critical elements like sample size and primary endpoints aligned, while ensuring comprehensive biopsy processes [85] Question: How will the company approach the AUD and ALD trials? - The company plans to assess AUD data and make decisions without waiting for ALD results, focusing on immediate next steps [93]

Financial Data and Key Metrics Changes - Revenue for 2025 increased by 13% year-over-year, reaching $183.6 million, exceeding the high end of guidance [5][20] - Adjusted EBITDA rose by 20% year-over-year to $26.7 million, with an adjusted EBITDA margin of 14.5% [5][23] - Free cash flow after distributions to non-controlling interest totaled $18.9 million, representing over 70% conversion from adjusted EBITDA [5][11] Business Line Data and Key Metrics Changes - The U.S. market saw a 69% year-over-year revenue increase, while Canada experienced a 7% decline, and international revenue grew by 5% [16][21] - ResMetrics contributed $5.2 million to revenue in 2025, slightly above expectations, with a total of $2.9 million in Q4 [16][21] Market Data and Key Metrics Changes - The U.S. market led revenue growth, driven by improved fracturing system sales and higher plug revenue [16] - Canada faced lower activity levels due to market headwinds, impacting revenue negatively [16] Company Strategy and Development Direction - The company aims to advance efficient and sustainable energy development, targeting the $10 billion global completions market [6] - Core strategies include building market positions, capitalizing on high-margin growth opportunities, and commercializing innovative solutions [7][9] Management's Comments on Operating Environment and Future Outlook - The management anticipates a challenging market environment in 2026, with flat to lower customer activity in North America but potential growth in international markets [26][27] - Full-year revenue guidance for 2026 is projected between $184 million and $194 million, with adjusted EBITDA expected between $26 million and $29 million [27][28] Other Important Information - The company maintains a strong balance sheet with a net cash position of approximately $29 million and total liquidity of about $61 million [23][31] - The integration of ResMetrics is expected to enhance the company's tracer diagnostics platform and open new market opportunities [12][13] Q&A Session Questions and Answers Question: Guidance and Revenue Timing - The management indicated that revenue is expected to be weighted towards the back half of the year due to seasonality and market conditions [37][39] Question: Cross-Selling Potential in the Middle East - Initial benefits from ResMetrics are more evident in North America, with potential for future cross-selling in international markets [40][42] Question: North Sea Market Updates - The North Sea has been a success, with new customer orders and ongoing projects expected to expand into shallow water markets [46][48]