Financial Data and Key Metrics Changes - Operating capital generation for Q3 2025 was EUR 340 million, a 1% increase year-on-year [10][11] - Free cash flow amounted to EUR 76 million, primarily reflecting the share of ASR's 2025 interim dividend [10][14] - Cash capital at holding remained strong at EUR 1.9 billion, despite returning over EUR 800 million to shareholders [4][14] Business Line Data and Key Metrics Changes - In the Americas, operating capital generation increased by 6%, or 12% on a constant currency basis, driven by strategic assets [11] - Life sales at World Financial Group (WFG) increased by 15%, and annuity sales rose by 9% due to solid consumer demand [6] - In the U.K., net deposits in the workplace platform were negative for the first time in two years due to the departure of two large low-margin schemes [8] Market Data and Key Metrics Changes - The U.S. retirement plans business reached $251 billion in assets under administration (AUA), with mid-sized plans increasing to $62 billion [43] - New life sales in Brazil continued to grow, particularly in credit and group life products, although offset by currency movements [9] - The U.K. solvency ratio for Scottish Equitable increased to 188%, primarily from operating capital generation [12] Company Strategy and Development Direction - The company aims to transform Transamerica into America's leading middle-market life insurance and retirement company [5] - Plans to return the advisor platform to growth by 2028, with a target to grow the overall platform by £5 billion by the same year [56] - A review regarding a potential relocation of the legal domicile and head office to the United States is ongoing [4][15] Management's Comments on Operating Environment and Future Outlook - Management remains confident in achieving all financial targets for 2025 despite the weakening of the US dollar [4][15] - The company is making good progress in transforming its businesses and expects to provide updates on strategy at the Capital Markets Day on December 10th [4][15] - Management noted that the underlying business in U.S. retirement plans is strengthening, with strong written sales indicating solid future deposits [43] Other Important Information - The company executed over half of its ongoing EUR 400 million share buyback program by the end of September [4] - The total new business strain in Q3 2025 was $10 million below the guidance of around $200 million per quarter [11] - The company is targeting a cash capital at holding of around EUR 1 billion by the end of 2026 [15] Q&A Session Summary Question: Long-term care book assumptions and cash conversion - Management confirmed that the actual to expected claims ratio for long-term care is 97%, and they are satisfied with their assumptions [20] - Cash conversion from the U.S. is expected to remain around 70%, with a focus on stable remittances [22] Question: Strategic assets and capital employed in financial assets - Management noted that capital employed in financial assets has decreased due to favorable equity markets and the implementation of a base fee hedge [28] - Earnings on in-force for distribution and protection solutions have decreased due to margin pressure and mortality movements [30] Question: Stranded costs and payout ratio - Management indicated that stranded costs are a consideration in financial asset management, with further guidance expected at the Capital Markets Day [36] - The payout ratio is expected to improve over time as the quality of earnings increases [35] Question: Variable annuities and mortality trends - Management is monitoring the flooring sensitivity and has not taken action yet, but will explore options if it becomes a constraint [45] - Mortality assumptions have been trending as expected, providing comfort regarding the company's mortality exposure [46] Question: Developments in the U.K. and RBC ratio - The U.K. business is on track to meet its targets, with a focus on improving the advisor platform [56] - The U.S. RBC ratio is currently at a satisfactory level, with no immediate need for capital injection [57] Question: Capital employed reduction and management actions - Management has made reasonable progress in reducing capital employed through various management actions, but further actions may be needed to meet targets [68]

Financial Data and Key Metrics Changes - The consolidated operating profit for Q3 2025 was KRW 11.541.4 trillion, with sales revenue increasing by 5.5% to KRW 73 trillion [4][5] - Electricity sales revenue reached KRW 70 trillion, up by 5.9%, while other revenue, including overseas business income, decreased by 0.9% to KRW 3.115 trillion [4][5] - Cost of sales and SG&A expenses totaled KRW 62.205 trillion, down by 2.7%, with fuel costs decreasing by 16% to KRW 14.026 trillion [5] Business Line Data and Key Metrics Changes - Electricity sales volume in Q3 reached 419.9 terawatt hours, up 0.4% year-over-year, primarily due to a summer heat wave [6] - For the full year of 2025, electricity sales are projected to decline slightly due to lower economic growth and a downturn in the manufacturing sector [6] Market Data and Key Metrics Changes - The bituminous coal price was around $105 per tonne, while LNG prices based on JKM were approximately $1,000 per tonne [7] - The generation mix for nuclear power increased due to new nuclear power plants coming online, while coal generation remained stable and LNG generation decreased slightly [7][8] Company Strategy and Development Direction - The company expects an increase in nuclear generation and a decrease in coal generation for 2025, with a maintained LNG mix [8] - The company is closely monitoring interest rate volatility and its impact on short-term corporate bonds, indicating a proactive approach to financial management [13] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for further investments in the power grid to support renewable energy and stable electricity supply, reinforcing the necessity for tariff increases [19] - The company is exploring opportunities in the U.S. nuclear market and is looking into various options for participation [23] Other Important Information - As of 2025, borrowings stood at KRW 86.1 trillion on a separate basis [9] - The RPS costs for 2025 were KRW 2.876 trillion on a consolidated basis [8] Q&A Session Summary Question: Impact of interest rate volatility on corporate bonds - Management acknowledged monitoring the situation closely but reported no special signs detected yet [13] Question: Introduction of localized marginal pricing - The wholesale pricing system is expected to be introduced in 2025, followed by retail pricing in 2026 [14] Question: Basis for potential electricity tariff increases - Management indicated that the need for investments in grid expansion and achieving greenhouse gas reduction targets would be strong bases for tariff increases [19] Question: Updates on nuclear power projects in the U.S. - Management stated they are exploring various options for participation in the U.S. nuclear market [23] Question: Status of HVDC project and its impact on transmission capacity - The first phase of the HVDC project is expected to be completed by October 2026, providing an additional four gigawatts of transmission capacity [23] Question: Exchange rate volatility and its impact on fuel costs - Management confirmed that they have an open position regarding foreign exchange rates and settle LNG prices based on average exchange rates [34] Question: Future directions for shareholder return policy - Management stated that the dividend policy will consider the net profit of the year, but specific details could not be disclosed at this time [40]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were RMB 200.9 million, a 22.3% increase year-on-year from RMB 164.3 million [9] - Net advertising revenues reached RMB 159.3 million, reflecting a 7.3% increase year-on-year from RMB 148.4 million [10] - Paid services revenues surged to RMB 41.6 million, marking a 161.6% increase year-on-year from RMB 15.9 million [10] - Loss from operations improved to RMB 13.3 million, compared to RMB 25.9 million in the same period last year [10] - Net loss attributable to the company was RMB 4.9 million, down from RMB 18.5 million in the same period last year [10] - Cash and cash equivalents totaled RMB 1 billion, approximately $140.5 million as of September 30, 2025 [11] Business Line Data and Key Metrics Changes - The company achieved solid progress in commercialization and user engagement through high-quality original content and innovative product experiences [4] - The Star Anchor Program, which helps train new content creators, tripled its revenue this year, indicating strong demand for content creators [14][15] Market Data and Key Metrics Changes - The company successfully hosted significant events such as the Shanxi Cultural and Tourism Development Promotion Event, generating over 2 billion online impressions [5] - The Phoenix Bay Area Finance Forum 2025 achieved over 720 million total impressions, showcasing the company's strong brand influence [6] Company Strategy and Development Direction - The company aims to prioritize content innovation and IP creation, enhance brand influence, diversify monetization channels, and improve operational efficiency for sustainable long-term growth [9] - Strategic cooperation with HarmonyOS is expected to yield further benefits, with the Phoenix News App being showcased at Huawei's new product launch [8][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the advertising market, noting that many clients remain cautious with their budgets [14] - The company plans to focus on innovation and improving service capabilities to maintain steady performance amid intense competition in Q4 [15] Other Important Information - The company’s media influence and resource integration capabilities supported significant growth in public and regional sectors [5] - The number of followers on Phoenix Video accounts grew by nearly 500,000 in Q3, indicating strong traction on video platforms [8] Q&A Session Summary Question: How did the advertising business manage to grow in Q3 despite market pressure? - Management highlighted close collaboration between sales units and content teams, which allowed for quicker and more precise responses to client needs. They also emphasized the importance of following marketing trends and connecting with key clients through events like the Shanxi Culture and Tourism Promotion Event [14][15] Question: What is the outlook for the ad market in Q4? - Management indicated that competition will remain intense and cost control will be critical. They will continue to focus on innovation and improving service capabilities to maintain steady performance [15]

Financial Data and Key Metrics Changes - Total net revenues for Q3 2025 were RMB 67.3 million, relatively stable compared to Q3 2024 [6] - Gross margin for Q3 2025 was RMB 26.4 million, down from RMB 30 million in Q3 2024, resulting in a gross margin percentage of 39.2% compared to 44.6% in the prior year [7] - Net income attributed to ACG in Q3 2025 was RMB 2.4 million, a significant improvement from a net loss of RMB 14.7 million in the prior year [8] - For nine months 2025, total net revenues increased by 7.1% to RMB 179 million from RMB 167.1 million in the prior year [9] - Net loss attributed to ACG for nine months 2025 was RMB 21.7 million, compared to RMB 49.4 million in the prior year [10] Business Line Data and Key Metrics Changes - Portfolio training services accounted for 71.9% of total net revenues, with project-based program credit hours delivered increasing by 22.9% compared to Q3 2024 [4] - Revenues from research-based learnings and overseas study counseling increased during the period due to more services delivered [4] - Total student enrollment for Q3 2025 was 1,052, down from 1,289 in the prior year period, reflecting normalized demand [10] Market Data and Key Metrics Changes - The company anticipates total net revenues for the full year 2025 to be between RMB 276 million and RMB 281 million, representing a year-over-year increase of around 3-5% from 2024 [11] - The company is focusing on expanding its services to cater to a growing student population with diverse arts backgrounds [13] Company Strategy and Development Direction - The company plans to consolidate select campuses in less active markets while expanding online classroom capacity [14] - New online master classes co-developed with prestigious universities are being introduced to enhance educational offerings [15] - The company aims to balance expansion with operating efficiency to strengthen market position and enhance student outcomes [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in ongoing investments in strategic growth initiatives and a strong focus on cost management to drive sustainable value creation [16] - The company is committed to delivering high-quality educational services while maintaining financial resilience in a competitive market [16] Other Important Information - Total operating expenses for Q3 2025 were RMB 37 million, a decrease of 22.4% from RMB 47.7 million in Q3 2024 [7] - The company has a cash and cash equivalents balance of RMB 96.8 million as of September 30, 2025 [10] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded with an invitation for future inquiries [17][18]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $2,155,000, an increase of 14.4% year over year, comprising $1,600,000 from product sales and $530,000 from services [6][38] - Gross profit was $420,000, with a cash balance of just under $70,000,000 as of September 30, 2025 [6][38] - Total comprehensive loss for the quarter was $5,400,000 compared to a loss of $364,000 in the same quarter last year [39][40] - Gross margin for Q3 2025 was 19.5%, down from 23.9% in Q2 2025, primarily due to product mix [41] Business Line Data and Key Metrics Changes - The company unveiled the Outrider Southern Border drone, designed for specific mission sets along the Southern Border, which is expected to have a large addressable market globally [7][32] - Collaborations with Palatin AI to incorporate AI into the drone fleet, enhancing capabilities for military and defense applications [9][12] - The appointment of military advisors to bolster defense capabilities and support sales teams [8] Market Data and Key Metrics Changes - Canada announced a significant increase in defense spending, with a focus on drone technology, positioning the company favorably in that market [23][58] - The U.S. Army is expected to order millions of drones, with the company anticipating a meaningful share of that market [56][67] Company Strategy and Development Direction - The company aims to create blue ocean opportunities by focusing on specialized markets such as border security and military applications, rather than competing in saturated markets [71][75] - Plans to expand manufacturing capacity significantly, with seven new plants expected to quadruple production capacity by the end of next year [20][65] - The strategy includes integrating various payloads and AI systems into the drone fleet to meet diverse customer needs [10][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving EBITDA positive and cash flow positive status in the near future, with strong visibility on growth [47] - The company is focused on building a strong team and culture through strategic acquisitions, emphasizing the importance of people over technology [48][50] - Management highlighted the unique position in the market due to Canadian manufacturing capabilities and the growing demand for defense-related products [24][58] Other Important Information - The company has been recognized as a leader in NDAA compliant drones, with a comprehensive lineup that includes multiple systems [13] - A significant order from a Fortune 50 telecom company for heavy lift drones was noted, indicating potential for future growth in commercial applications [25][26] Q&A Session Summary Question: What are the scenarios for any potential future raise? - The company has $70,000,000 cash on hand and is burning about $1,000,000 per month, indicating no acute need for cash raises but will consider opportunistic raises for strategic acquisitions focused on people [46][47] Question: Can you expand on the press release about manufacturing and overseas military facilities? - The manufacturing in overseas military facilities is primarily for assembly and modification, allowing for rapid adaptation to tactical needs [51][52] Question: Will the company be able to capture a meaningful piece of the U.S. Army's drone orders? - Management believes they can capture a meaningful share of the anticipated orders, emphasizing the importance of providing value to customers [56][57] Question: Is border security still the main focus for the company? - Yes, border security remains a significant focus, with specialized solutions being developed to address various challenges [59][60] Question: Do you see consolidation in the drone industry? - Yes, consolidation is expected as many small companies enter the market, but the company is well-positioned to leverage available talent [61][63] Question: What is the current production capacity and plans for 2026? - The company currently has a capacity of about $100,000,000 and plans to expand further in 2026 [65] Question: What percentage of revenues will be military versus commercial? - Military sales are expected to grow significantly, potentially making up 90% of revenues in the near future [67]

Financial Data and Key Metrics Changes - Revenue for Q1 Fiscal 2026 was $1.4 million, up from $481,000 a year ago and $1.3 million in the prior quarter [10] - GAAP net loss for the quarter was $1.5 million, or $0.09 per share, compared to a net loss of $730,000, or $0.06 per share in Q1 of last year [10] - Non-GAAP net loss was $437,000, or $0.03 per share, versus a net loss of $550,000, or $0.04 per share in the first quarter last year [11] - Cash and cash equivalents at the end of the quarter were $38.1 million, with no long-term debt [11] Business Line Data and Key Metrics Changes - The company is focusing on high-performance semiconductor photonics, including high-speed transceiver components and high-power quantum dot lasers [3][4] - A new contract with NASA was signed to leverage the scalable semiconductor platform for quantum applications [6] Market Data and Key Metrics Changes - The market for optical component technologies and AI infrastructure is projected to be several billion dollars within a few years [4] - Demand for semiconductors in U.S. markets is at an all-time high, with supply chain issues affecting traditional manufacturing processes [3] Company Strategy and Development Direction - Aeluma is transitioning to commercial-scale production of high-performance semiconductors to meet the growing demand for AI infrastructure [3] - The company aims to increase manufacturing readiness and has increased wafer fabrication levels at foundry partners nearly fivefold [7][8] - Strategic priorities include transitioning from R&D revenue to initial commercial product revenue [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growing demand for high-performance semiconductor technology in key target markets [15] - The company is focused on solidifying relationships with prospective customers and preparing for initial commercial product revenue during the fiscal year [27] Other Important Information - Aeluma completed an oversubscribed capital raise, strengthening its balance sheet and boosting cash to $38 million [6] - The company is actively recruiting to fill key roles in business development, manufacturing, and operations [8] Q&A Session Summary Question: Update on customer engagements - Management reported continued progress in defense, aerospace, and AI infrastructure engagements, with notable achievements including sample deliveries [20][21] Question: Timeline for standing up fabs - The timeline for volume production depends on specific volume and market vertical, but current capacity can support reasonable volumes in defense and aerospace [22][23] Question: Market size for transceiver components - Management highlighted growing interest in high-performance technology for higher-speed transceivers, with potential for good margins [24][25] Question: Timeline for design wins or qualifications - The goal is to achieve initial commercial product revenue during the fiscal year, with ongoing efforts to solidify customer relationships [26][28] Question: Balance sheet and cash flow position - Management believes the current cash position is sufficient to reach initial revenue, but future investments may be needed for rapid growth [29] Question: Impact of government shutdown - The government shutdown has caused some delays in contract execution, but it has not significantly impacted the company's operations [42][43] Question: Updates on fab relationships - No new fab partners were formally added, but the company has increased wafer runs at existing fabs [45]

Financial Data and Key Metrics Changes - For Q1 Fiscal Year 2026, revenue was reported at $1.4 million, a significant increase from $481,000 in the same quarter last year and slightly up from $1.3 million in the previous quarter [10] - GAAP net loss for the quarter was $1.5 million, or $0.09 per share, compared to a net loss of $730,000, or $0.06 per share in Q1 of last year [10] - Non-GAAP net loss was $437,000, or $0.03 per share, an improvement from a loss of $550,000, or $0.04 per share in the first quarter last year [11] - The company ended the quarter with $38.1 million in cash and cash equivalents, with no long-term debt [11] Business Line Data and Key Metrics Changes - The company has fast-tracked the transition to commercial-scale production of high-performance semiconductors, particularly for AI infrastructure [3][4] - Aeluma signed a new contract with NASA to leverage its scalable semiconductor platform for quantum applications, reflecting its dual-use technology approach [6] Market Data and Key Metrics Changes - The market for optical component technologies and AI infrastructure is projected to be several billion dollars within a few years, indicating strong growth potential [4] - Demand for semiconductors in the U.S. is at an all-time high, with supply chain issues affecting traditional manufacturing methods [4] Company Strategy and Development Direction - Aeluma aims to transition from R&D revenue to initial commercial product revenue, with a revenue expectation of $4 million to $6 million for fiscal 2026 [12][13] - The company is focusing on increasing manufacturing readiness and has increased wafer fabrication levels at foundry partners nearly fivefold [8] - Aeluma is strategically selective in bidding on projects that align with its commercial target markets, particularly in defense, aerospace, and AI infrastructure [13][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growing demand for high-performance semiconductor technology and the company's ability to deliver at scale [15] - The company is preparing for a transition to commercialization, with a focus on solidifying relationships with prospective customers and delivering samples for evaluation [27][28] Other Important Information - Aeluma completed an oversubscribed capital raise, boosting its cash position to $38 million and strengthening its no-debt balance sheet [5] - The company is actively recruiting key personnel to support its growth initiatives and manufacturing readiness [8] Q&A Session Summary Question: Update on customer engagements - Management reported continued progress in defense, aerospace, and AI infrastructure engagements, with notable achievements including sample deliveries and custom work [20][21] Question: Timeline for standing up fabs - The timeline for volume production depends on specific market verticals, but the company is currently running more wafers through fab partners and can support reasonable volumes for defense and aerospace [22][23] Question: Market sizing for transceiver components - Management highlighted strong interest in high-performance technology for higher-speed transceivers, with potential for good margins in this market [24][25] Question: Timeline for design wins or qualifications - The goal is to achieve initial commercial product revenue during the fiscal year, with ongoing efforts to solidify customer relationships and deliver samples [26][28] Question: Cash flow position - Management believes the current cash position is sufficient to reach initial revenue, but future investments may be needed to support rapid growth [29] Question: Impact of government shutdown - The government shutdown has caused some delays in contract execution, but it has not significantly impacted the company's reliance on government funding [42][43] Question: Updates on fab relationships - No new fab partners were formally added, but the company has increased wafer runs at existing fabs and is working on supply chain integration [45][46]

Financial Data and Key Metrics Changes - The company reported third quarter revenue of $29,200,000, exceeding guidance of $27,000,000 to $28,500,000, and representing a 6% sequential increase from the second quarter [7][26] - Adjusted EBITDA loss for the third quarter was $9,900,000, within the guidance range, and the company raised its 2025 revenue guidance to at least $105,000,000 [7][26] - The company has improved its capital structure, reducing debt by $52,000,000 through pay downs and conversions to equity [5][24] Business Line Data and Key Metrics Changes - The on-demand business generated a 40% increase in revenue compared to both the second quarter and the same quarter of the prior year, benefiting from a shift in the mix of flying from turboprop to jet aircraft [9][26] - Scheduled service revenue decreased by 4% year-over-year, while on-demand revenue increased by 42% sequentially [26] - The airline operations achieved a second consecutive quarter of profitability, defined as positive adjusted EBITDA [27] Market Data and Key Metrics Changes - The company has flown over 300,000 passengers in the past twelve months, positioning itself as one of the largest commuter airlines in the country [10] - The company is well-positioned in the air mobility market, leveraging relationships with over 400 operators for its on-demand operations [10][11] Company Strategy and Development Direction - The company is executing a four-phase transformation plan aimed at building an air mobility platform and strengthening its financial position [4][14] - Plans include the commercialization of Surf OS in 2026, with three flagship products: BrokerOS, OperatorOS, and OwnerOS [14][15] - The company is pursuing strategies to showcase new technology in its airline operations and expand into new markets, particularly in Hawaii [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to drive shareholder value and highlighted the successful execution of the transformation plan [21][55] - The company anticipates a runway of 18 to 24 months for the commercialization of Surf OS, supported by recent financing [30][46] - Management noted that the government shutdown has not significantly impacted operations, with no capacity reductions affecting their services [49][50] Other Important Information - The company has entered a five-year exclusive partnership with Palantir to leverage AI tools for developing an all-in-one software platform for the air mobility industry [11][12] - The company is targeting a supplemental type certificate for electrified powertrains by 2027, with plans to work with key organizations in the industry [20] Q&A Session Summary Question: What kind of cash runway do you have in terms of commercializing Surf OS? - The financing provides a runway of between 18 and 24 months for Surf OS [30] Question: Can you talk about your partnerships with Palantir and Beta Technologies? - The company is well-positioned to partner with various electrification technology providers, leveraging its regional air mobility operations [31][32] Question: Are there opportunities to lower operating costs over the next twelve to eighteen months? - The company is still optimizing airline operations and expects to achieve increased profitability and operational performance through technology [33][34] Question: How many more routes might you expect to remove from the scheduled business? - A few more exits are expected in the fourth quarter, with all unprofitable routes to be exited by the end of the year [40] Question: Can you speak to the path for the company to be debt-free? - The company has a clear path to becoming debt-free through the convertible note structure and successful execution of its transformation plan [44] Question: Any commentary around the recent government shutdown? - The company has not experienced significant impacts from the government shutdown, continuing operations without disruptions [49][50]

Financial Data and Key Metrics Changes - Revenue for the nine-month period grew over 13% year over year, reaching BRL 2,784 million, with adjusted EBITDA growth of almost 19% year over year, reaching BRL 1,292 million [5][19] - Adjusted EBITDA margin for the same period reached 46.4%, an increase of 200 basis points over last year [5][19] - Net income reached BRL 593 million, a growth of 20% year over year, with basic EPS reaching BRL 6.40, also a 20% increase [6][21] - Cash flow from operating activities rose by 11%, ending the nine-month period at BRL 1,292 million, with a cash conversion of 101.5% [5][20] Business Line Data and Key Metrics Changes - The undergraduate segment saw a 6% growth in the number of medical students, reaching over 25,000, while approved medical seats increased by almost 2% [6][13] - Continuing Education segment revenue grew by 11% year over year, reaching BRL 208 million [7][15] - Medical Practice Solutions revenue increased over 9% year over year, reaching BRL 128 million [7][16] - The ecosystem reached 304,000 active users, indicating strong engagement among physicians and medical students [7][17] Market Data and Key Metrics Changes - The number of paying users in Medical Practice Solutions reached 195,000, a 2% decrease year over year, while monthly active users accounted for 228,000, down from 249,000 [16] - Continuing education saw a 36% decrease in residency journey students, while graduate journey students grew by 26% [15][66] Company Strategy and Development Direction - The company aims to maintain leadership in medical education and expand its ecosystem, focusing on sustainable growth and social impact through initiatives like Instituto AFIA [10][11] - The company is exploring M&A opportunities and evaluating capital allocation strategies, including potential increases in dividends and share buybacks [31][38] Management's Comments on Operating Environment and Future Outlook - Management expects effective tax rates to converge to 15% from 2026 onwards due to new tax regulations [30] - The company remains optimistic about future growth opportunities and is confident in its ability to create value for shareholders [25][40] Other Important Information - The company has been recognized for its ESG initiatives, receiving the Valor 1,000 award for its performance in the education sector [11] - The company has strengthened its financial position through liability management, including the issuance of commercial notes [22][23] Q&A Session Summary Question: Effective tax rate and capital allocation strategy - The effective tax rate for the nine-month period was 9.7%, up from 5.1% last year, primarily due to provisions for new tax regulations [29] - The company is evaluating various capital allocation strategies, including M&A, buybacks, and dividends [32] Question: Capital allocation strategies and 2026 intake cycle - The company is analyzing M&A opportunities and plans to maintain around 200 approved medical seats per year [38] - Tuition for 2026 is expected to increase by around 5% to 5.2% over 2025 [40] Question: Ticket readjustment and demand for medical careers - The average ticket is expected to grow around 5%, with demand for medical careers remaining stable compared to last year [44][45] Question: Gross margins in Medical Practice Solutions and subscriber trends - Gross margins in Medical Practice Solutions increased due to cost management initiatives [50] - The company is reviewing its pricing strategy for clinical decision software to regain subscriber growth [52] Question: Recently acquired units and EBITDA margin expansion - The ramp-up for recently acquired units is expected to take time, with margins improving as student numbers increase [61] - The company has achieved significant margin expansion and continues to seek efficiencies across its segments [66] Question: Continuing education segment trends - The drop in residency journey students is a one-time effect due to a change in product offerings [67]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 decreased to $1,165,000 from $1,958,000 in the same period a year ago, primarily due to declines in research and development revenue and license and milestone revenue [23][24] - Research and development expenses increased to $572,000 from $460,000 year-over-year, driven by a rise in active internal research initiatives [24] - Net loss for Q3 2025 increased to $1,976,000 or $0.06 per share compared to a loss of $203,000 or $0.01 per share in the same period last year [25] Business Line Data and Key Metrics Changes - The Life Sciences segment is now operating as a product company, manufacturing and supplying lab-grade materials for multiple recombinant proteins [5][6] - The recombinant human albumin program is advancing towards a commercial launch in early 2026, with significant milestone payments received from ProLiant [6][7] - The first bulk purchase order for a Dyadic produced protein was achieved in October, validating the market readiness of the technology [8] Market Data and Key Metrics Changes - The cell culture media market is identified as a dynamic growth area, requiring consistent animal-free proteins for scalability and regulatory confidence [6] - The market for DNase one is approximately $250 million for recombinant products, with a broader market of $1.5 billion for all production methods [32] - The animal-free dairy protein market is expected to exceed $20 billion by 2035, driven by demand for sustainable protein production [13] Company Strategy and Development Direction - The company is transitioning from a platform-centric R&D organization to a commercially focused biotechnology company with a growing portfolio of high-value products [4][5] - Dyadic has rebranded as Dyadic Applied Biosolutions and is enhancing its technology foundation with CRISPR Cas9 gene editing capabilities [4][5] - The strategy includes expanding customer engagement in key global markets, particularly in Asia, Europe, and North America [76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's transformation and execution, highlighting the first commercial bulk sale as a pivotal moment [4][5] - The focus remains on accelerating product sales across life sciences and molecular biology reagent portfolios, with early commercial traction already underway [76] - The company anticipates growth in product revenue in life sciences and food and nutrition markets while maintaining operating expenses in line with the previous year [26] Other Important Information - The company received a total of $1,500,000 in milestone payments from ProLiant, with expectations to share in profits as albumin products enter the market [7] - Dyadic's collaboration with Intralink aims to accelerate market penetration in Japan and South Korea, leveraging local expertise for effective market reach [11][12] Q&A Session Summary Question: What does the new relationship with ERS Genomics bring to the portfolio? - The CRISPR license enhances the genetic toolbox, accelerating product development and improving optimization yields, providing a competitive advantage in various markets [29][30] Question: How should the DNase one opportunity be viewed for growth in 2026 and beyond? - The DNase one market is substantial, and the focus is on securing OEM agreements for bulk sales, with expectations for steady growth as higher margin segments are targeted [32][34] Question: What characteristics of customers are expected in the Asian markets for DNase one and transferrin? - The target customers include cell and gene therapy manufacturers and suppliers, focusing on bulk purchase orders rather than individual institutions [36][37] Question: Can you elaborate on the CRISPR ERS agreement structure? - The agreement involves improving fungal cell lines for efficiency and quality, with confidentiality around financial specifics, but it is not comparable to CRISPR applications in pharmaceuticals [45][46] Question: How is the infant nutrition product being marketed? - The goal is to mimic human breast milk and bovine milk, with a focus on regulatory hurdles and consumer acceptance, presenting a significant opportunity in the market [51][53]