Financial Data and Key Metrics Changes - The company achieved a record Total Payment Volume (TPV) exceeding $10 billion, with a gross profit surpassing $100 million, marking a nearly 60% year-over-year growth in TPV and a 32% increase in gross profit [3][4][15] - Adjusted EBITDA reached $72 million, representing 70% of gross profit, with net income growing to $52 million due to lower finance costs [4][19] - Revenue for the quarter was $282 million, up 52% year-over-year, driven by strong volume growth [16] Business Line Data and Key Metrics Changes - TPV growth was broad-based, with significant contributions from remittances, e-commerce, on-demand delivery, and SaaS verticals, while advertising showed weakness primarily due to Egypt [15][16] - Cross-border transactions grew 75% year-over-year, while local-to-local transactions increased by 46% year-over-year [15] - The company reported strong performance in Brazil, Colombia, and other LATAM regions, despite challenges in Argentina and Mexico [4][15] Market Data and Key Metrics Changes - Local payment methods in Brazil, driven by PIX, now account for over half of e-commerce volume, with expectations to reach nearly 60% by 2027 [5] - The company noted a gradual pickup in TPV in Argentina post-elections, indicating potential for growth despite currency uncertainties [24][28] - The effective income tax rate for the quarter was 15%, with expectations to diversify away from Argentine securities to reduce volatility [19] Company Strategy and Development Direction - The company aims to be a one-stop shop for emerging market financial infrastructure, focusing on local payment methods and alternative financial solutions [6][7] - Product innovation remains a priority, with recent launches including Buy Now Pay Later solutions and expanded APM capabilities [12][45] - The company is focused on navigating the complexities of emerging markets while maintaining a disciplined cost posture and strong cash generation [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in Argentina and Brazil, despite acknowledging risks from currency fluctuations and changing tax regimes [24][25][28] - The company expects continued strength in remittances and commerce, with no immediate signs of alarm for these verticals [30] - Management highlighted the importance of monitoring global macroeconomic conditions and potential trade barriers that could impact business [20][21] Other Important Information - The company reported a healthy adjusted free cash flow to net income conversion, reinforcing its cash-generative business model [5] - The net retention rate (NRR) increased to 149%, reflecting strong customer loyalty and upsell opportunities [9] Q&A Session Summary Question: Impact of Argentina's elections on business - Management noted a gradual pickup in TPV post-elections, indicating a positive outlook for growth in Argentina, while monitoring exchange rates closely [24] Question: Tax regime changes in Brazil - Management clarified that recent tax changes do not negatively impact the company, and they are monitoring the evolving fiscal landscape [25][26] Question: Growth drivers in remittances and e-commerce - Management highlighted strong growth across various verticals, with remittances growing over 200% year-on-year, and expressed confidence in continued strength [30] Question: Take rate concerns - Management indicated that the recent take rate compression was influenced by one-off factors and that a normalized take rate would remain above 100 basis points [31][32] Question: Brazilian market performance - Management confirmed that the growth in Brazil is broad-based and not reliant on a single merchant, with a strong rebound in cross-border transactions [36] Question: Future of local to local transactions - Management reassured that cross-border volumes have remained stable, and local to local transactions are not expected to significantly dilute overall take rates [38] Question: Alternative payment methods and their impact - Management emphasized the growing adoption of local payment methods and the potential for higher take rates from Buy Now Pay Later offerings [44][45]

Financial Data and Key Metrics Changes - In Q3 2025, net revenue was approximately $73.6 million, a decrease of 9% year-over-year, driven by a 14% decrease in total orders placed, partially offset by an 8% increase in average order value [25] - Gross margin for the quarter was 42.6%, up 450 basis points year-over-year due to improvements in product-related margins and a higher mix of full-price sales [26] - The net loss for Q3 improved to $2.3 million from a $6.9 million loss in the same period last year, driven by a $0.7 million improvement in gross profit and a $4.2 million reduction in operating expenses [27] - Q3's adjusted EBITDA was approximately $0.4 million positive compared to a $3.6 million loss in Q3 2023, marking a $3.9 million improvement year-over-year [27] Business Line Data and Key Metrics Changes - Special occasion and bridesmaids categories continue to outperform, contributing to year-over-year net sales growth, while casual wear and footwear assortments are being realigned towards a more curated event-focused assortment [8][9] - Product margins improved for the fourth consecutive quarter, reflecting a 500 basis point increase compared to the prior year period [11] - The wholesale business achieved triple-digit, seven-figure year-over-year growth, expanding to six major retailers in Q3 [13] Market Data and Key Metrics Changes - The company observed a three-year CAGR of 6.7% in special occasion product classes year-to-date, with a 9.5% CAGR in Q3 2025, indicating growth acceleration [10] - Return rates improved 110 basis points from Q2, highlighting the impact of improved fit and quality efforts [12] Company Strategy and Development Direction - The company is focused on optimizing its core business while navigating a dynamic macro environment, with a strategic decision to reset merchandising strategy in casual apparel and shoes [14][15] - Cost reduction initiatives have led to an 11% decline in OPEX year-over-year, with fixed costs down 18% [17] - The company aims to enhance performance and drive sustained, profitable long-term growth through process optimization and operational efficiency [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the event attire strategy and the strength of the attainable luxury value proposition, despite challenges in casual wear and footwear [8] - The company expects top-line pressure from casual apparel and shoes to moderate towards the end of Q2 2026, allowing for more meaningful revenue improvements [16] - Management remains committed to maintaining positive year-to-date cash flow and investing in long-term objectives to support growth [31] Other Important Information - The company entered into a credit agreement with White Oak Commercial Finance, enhancing its liquidity position and financial flexibility [9] - Free cash flow during Q3 was negative $2.4 million, reflecting a $3.9 million improvement year-over-year [29] - The company is actively executing a multifaceted strategy to mitigate tariff-related costs through vendor collaboration and diversified sourcing [30] Q&A Session Summary Question: No questions were asked during the Q&A session - The session concluded with no questions in the queue, indicating a lack of inquiries from participants [32]

Financial Data and Key Metrics Changes - Paysign reported record revenue of $21.6 million, an increase of 41.6% year over year [3][12] - Adjusted EBITDA reached a record $5 million, up 78% [3][12] - Net income rose 54% to $2.2 million, or $0.04 per fully diluted share [3][14] - Consolidated gross profit margin improved to 56.3%, up 72 basis points [12][13] - Adjusted unrestricted cash balance at quarter-end was $16.9 million with zero debt [15] Business Line Data and Key Metrics Changes - Patient affordability business generated $7.9 million in revenue, up 142% year over year, accounting for 36.7% of quarterly revenues [4][12] - Plasma donor compensation revenue grew 12.4% to $12.9 million, despite a net loss of 12 centers, totaling 595 active centers [6][12] - The number of claims processed in the patient affordability segment increased by over 60% compared to the same period last year [12] Market Data and Key Metrics Changes - The company ended the quarter with 105 active patient affordability programs and expects to add 20-30 more by year-end [4][10] - The plasma business is expected to normalize in the first half of 2026 due to an oversupply of source plasma [6] Company Strategy and Development Direction - Paysign aims to expand its role in the blood and plasma ecosystem, evolving from a payments provider to a technology partner [8] - The company is focused on integrating its proprietary Dynamic Business Rules technology into the pharmacy claims process to unlock new revenue streams [5] - The opening of a new 30,000 sq ft patient support center is expected to enhance service capacity and operational efficiency [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory and long-term value creation for shareholders [9][11] - The company anticipates improvement in gross profit margins as new customer service centers ramp up [11] - Management noted that the plasma industry is expected to normalize, which could lead to organic growth at the center level sooner than anticipated [7][12] Other Important Information - The company raised its revenue guidance for 2025 to a range of $80.5 million to $81.5 million, reflecting year-over-year growth of 38.7% at the midpoint [16] - Full-year gross profit margins are expected to be approximately 60% [16] Q&A Session Summary Question: Insights on retail versus specialty pharmacy mix - Management indicated a decent mix of retail versus specialty pharmacy, with a higher percentage of retail programs expected in the pipeline moving into next year [19][21] Question: Gross profit margins and capacity utilization - Management clarified that gross profit margins are expected to improve as new centers mature and the patient affordability programs ramp up [24][26] Question: Average revenue per program and seasonal business dynamics - Management explained that the business is seasonal, and the current mix is more geared towards claims rather than initial launch fees, impacting average revenue per program [27][31] Question: Dynamics affecting plasma donor engagement - Management noted no significant changes in donor engagement due to immigration issues and did not expect changes from the government shutdown [44][46] Question: Timing for FDA approval of the donor management system - Management expects FDA approval for the donor management system in the first quarter of 2026, with potential licensing opportunities on a center-by-center basis [49][50]

Financial Data and Key Metrics Changes - Silvaco reported record quarterly revenue of $18.7 million, up 70% year over year, with bookings increasing 131% to $22.8 million [17][18] - GAAP gross margin improved to 77.9%, up 326 basis points year over year, while non-GAAP gross margin was 81.5%, up 179 basis points [17][18] - GAAP net loss was $5.3 million, an improvement from a $6.6 million loss in the same period last year [18] Business Line Data and Key Metrics Changes - EDA business saw the most growth sequentially in Q3, while TCAD and IP trended down slightly [17] - 74% of revenue came from license revenue, with the remaining 26% from maintenance and service [17] Market Data and Key Metrics Changes - The Americas contributed 55% of total revenue, while APAC represented 40% and EMEA remained flat at 5% [17] Company Strategy and Development Direction - The company aims to focus on key products that are differentiated and to reduce attention on mature products [5][6] - Silvaco plans to strengthen financials by reversing the trend of expenses growing faster than revenue [6][11] - The acquisition of Mixel is expected to drive rapid growth in the IP business, leveraging synergies with Silvaco's existing sales force [8][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that financial performance has been disappointing since the IPO, with a focus on achieving profitability at current revenue levels [11][15] - There is optimism regarding the contributions of recent acquisitions, particularly Mixel and Tech-X, expected to drive growth in 2026 [13][20] Other Important Information - A significant cost reduction program has been initiated, targeting an annualized reduction of at least $15 million [19][20] - The company expects to see improvements in gross margins and a flat to down trend in operating expenses [15][20] Q&A Session Summary Question: Transition from board to CEO role and revenue mix-out - Management confirmed that there is substantial opportunity ahead and that they will focus on freeing up resources for key growth areas [22][23] Question: Timeline for cost reductions and forecasting reliability - Most cost reductions are expected to be realized by the end of the fiscal year, with benefits seen in Q1 2026 [25][26] Question: Potential for Silvaco products to become industry standards - Management highlighted the importance of focused markets and customer bases to develop industry-leading products [29][30] Question: Performance of Mixel and its impact - Mixel is praised for its high-quality products and execution, with expectations for substantial growth due to the integration with Silvaco's sales force [33][34] Question: Pipeline and FTCO opportunity - The FTCO product is seen as a significant opportunity, although its adoption has been slower than expected [38][39] Question: Revenue guidance and future growth prospects - Management indicated that while Q4 revenue guidance appears lighter, they expect stronger contributions from acquisitions in 2026 [43][44] - Long-term growth targets are set at double-digit rates, with a focus on stabilizing and growing the existing business [52][53]

Financial Data and Key Metrics Changes - Third quarter 2025 revenue totaled approximately $18.7 million, an increase of 292% year-over-year compared to $4.8 million in Q3 2024, and over 62% sequentially [5][14] - Gross profit loss narrowed to $2.6 million in Q3 2025 from a loss of $7.8 million in Q3 2024, indicating an improvement in gross margin [14] - Loss from operations was $7 million in Q3 2025, down from $14.3 million in Q3 2024 [15] - Reported net loss for Q3 2025 was $7.5 million, translating to a loss per share of negative $0.38 [15] Business Line Data and Key Metrics Changes - Revenue from the MVNO brand, Torch Wireless, increased from virtually zero in Q3 2024 to $5.6 million in Q3 2025, driven by the Lifeline program [6] - Point of sale and prepaid services revenue rose to $13.1 million, a 177% increase year-over-year [7] - The Clearline SaaS platform is expected to achieve positive gross margins by the end of 2025 [14] Market Data and Key Metrics Changes - SurgePays has over 125,000 subscribers for Torch Wireless, growing from 20,000 subscribers since activation in June [6] - The subprime market has expanded from $100 million to approximately $137 million over the past four years, indicating a growing target market for the company [22][23] Company Strategy and Development Direction - The company is focused on integrating technology with a nationwide retail distribution network to serve underserved communities [4] - SurgePays aims to achieve profitability with minimal impact on the cap table and dilution, while targeting $225 million in revenue for 2026 [12][16] - A new Growth Marketing and Data Partnerships division has been launched to transform consumer data into a scalable, high-margin growth engine [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy and navigate the industry, highlighting the importance of customer intelligence and marketing execution as competitive advantages [12][19] - The company is in "acceleration mode," with activation growth and expanding distribution supporting its confidence in creating significant shareholder value [19] Other Important Information - SurgePays is in advanced talks with national convenience store distributors to expand its retail footprint [9] - The partnership with Corpay aims to integrate Clearline's marketing tools into Corpay's payment processing solution, creating new revenue streams [11] Q&A Session Summary Question: Feedback from convenience store owners regarding the underserved market - Management noted that convenience store owners are open to new products and services, especially during uncertain times, creating opportunities for SurgePays [22][23] Question: Impact of consolidation among major convenience store brands - Management believes that the autonomy of store owners will remain intact despite consolidation, and they continue to build strong relationships with these owners [26][28]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $687,000, an increase of 210% compared to the previous year, aligning with guidance provided for the quarter [18] - Fleet revenue was $433,000, with branding revenue jumping 120% sequentially over Q2 [18] - Adjusted EBITDA was negative $24.9 million, driven by operational expansion expected to accelerate efficiency through 2026 [22] Business Line Data and Key Metrics Changes - Delivery volume increased by 66% in a single quarter, with delivery reliability nearly at 100% [8] - The company now delivers for over 3,600 restaurants, a 45% increase from the last quarter and more than a nine-fold increase since last year [8] - Average daily operating hours per robot increased by 12.5% sequentially from Q2, indicating higher value contribution from each unit [20] Market Data and Key Metrics Changes - The fleet size grew 10X, cities expanded 5X, and major platform partners increased 2X within less than a year [9] - The company operates in five fully operational hubs covering over 3 million populations and over 1 million households, a nearly 70% increase in a single quarter [10] Company Strategy and Development Direction - The company aims to build a national interconnected autonomous delivery network, leveraging partnerships with DoorDash and Uber to enhance delivery volume and efficiency [11][12] - The integration of recent acquisitions, including YU Robotics and Vayu, is expected to enhance the company's competitive position and operational metrics [17][18] - The long-term vision includes deploying 1 million robots globally, embedding them into the urban fabric to unlock new possibilities [15][16] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of scaling efficiently while maintaining safety and reliability as the fleet expands [37] - The company expects to generate more than $2.5 million in revenue for the full year 2025, with underlying recurring fleet revenues projected to grow 3x year over year [23] - The path to achieving a revenue run rate of $60-$80 million is underway, with expectations for significant growth in 2026 [36][37] Other Important Information - The company entered the quarter with $211 million in cash and marketable securities, and executed a stock sale generating approximately $100 million for working capital and expansion [22] - The integration of AI foundation models and scalable simulation-powered data engines is expected to accelerate operational improvements [14] Q&A Session Summary Question: Do you expect to add more robots in 2026? - Management indicated that while specific numbers are not shared, growth will be pursued with precision and discipline, focusing on efficiency and utilization [25] Question: Could you provide details on robot design simplification and cost reduction? - Management highlighted progress in modular design, improved supply chain, and scaled manufacturing, resulting in a significant reduction in per unit cost [26][27] Question: What are the next steps in your DoorDash relationship? - The focus is on integrating robots into the fleet and planning market rollouts, which will unlock a vast network of restaurants and consumers [28][29] Question: Can you quantify the autonomy effect from Vayu? - Management noted that it is early in the integration process, but the expectation is for robots to become faster and smarter over time [30] Question: What have you learned from new deployments and expansions? - Each city presents unique challenges that enrich the models, leading to improved reliability and efficiency in subsequent launches [31] Question: What can you share about the pipeline for software and data sales? - There is strong interest in the software and data generated by the robots, with ongoing discussions with multiple partners [34] Question: When do you expect to reach the $60 million-$80 million run rate? - Management stated that the path to this run rate is underway, with significant progress expected as the company approaches the end of 2025 [36][37]

Financial Data and Key Metrics Changes - For Q1 fiscal 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 seen continued revenue growth from government and commercial contracts, reflecting a solid quarter [10] - Aeluma signed a new contract with NASA, leveraging its scalable semiconductor platform for quantum applications, indicating a focus on dual-use technology [6][12] 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, highlighting significant growth potential [5] - Demand for semiconductors in the U.S. is at an all-time high, with supply chain issues affecting traditional manufacturing methods [5] Company Strategy and Development Direction - Aeluma is fast-tracking the transition to commercial-scale production of high-performance semiconductors, focusing on optical interconnects and AI infrastructure [4] - The company 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] - Aeluma is strategically selective in bidding on projects that align with its commercial target markets, focusing on larger-scale opportunities [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet growing demand for high-performance semiconductor components, particularly in AI and defense sectors [9] - The company is preparing for a significant inflection point in the semiconductor industry, with plans to increase spending on growth initiatives [13] Other Important Information - Aeluma completed an oversubscribed capital raise, strengthening its balance sheet and boosting cash reserves to $38 million [6] - The company has increased wafer fabrication levels at its foundry partners nearly fivefold, enhancing 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 in sample deliveries and custom work [20] Question: Timeline for volume production readiness - Management indicated that the timeline for volume production depends on specific market verticals and qualification requirements, but they are currently capable of supporting reasonable volumes [22] Question: Market size for transceiver components - Management highlighted growing interest in high-performance technology for higher-speed transceivers, with potential for good margins in this market [24] Question: Transition to commercialization - The goal is to achieve initial commercial product revenue during the fiscal year, with ongoing efforts to solidify customer relationships and deliver samples [28] Question: Impact of government shutdown - Management acknowledged some delays in contract execution due to the government shutdown but emphasized that it has not significantly impacted their operations [44] Question: Update on fab relationships - While no new fab partners were formally added, the company has increased the number of runs at existing fabs and is working on supply chain integration [47]

Financial Data and Key Metrics Changes - Digi International reported record quarterly revenue of $114 million, a 9% year-over-year increase, marking a return to top-line growth [4] - The company generated $430 million in revenue for the full fiscal year, up 1% year-over-year, and reported $108 million in adjusted EBITDA, an 11% increase year-over-year [4] - Annual Recurring Revenue (ARR) reached a record $152 million, representing a 31% year-over-year increase, with ARR now accounting for approximately 35% of total revenue [4][5] Business Line Data and Key Metrics Changes - The integration of SmartSense and Jolt Software is being embraced by the market, with cross-selling opportunities beginning to unfold [5] - The company is focused on transitioning from transactional sales to multi-year solution subscriptions, with a goal of achieving 100% attached sales [12][14] Market Data and Key Metrics Changes - The company sees broad-based opportunities in connecting hundreds of billions of devices to the internet, particularly in the industrial IoT space [6] - The data center segment is contributing significantly to revenue, with strong demand observed in various verticals including utilities and medical devices [15][39] Company Strategy and Development Direction - Digi International aims for double-digit growth in ARR, revenue, and adjusted EBITDA for fiscal 2026, with a long-term goal of reaching $200 million in ARR and adjusted EBITDA by the end of fiscal 2028 [7][8] - The company is leveraging AI for product enhancements and exploring opportunities in edge computing and industrial automation [6][29] Management's Comments on Operating Environment and Future Outlook - Management noted that while certain verticals are accelerating decision-making, others are still experiencing delays due to macroeconomic uncertainties, including government shutdowns [23][24] - The company remains optimistic about its growth trajectory, citing a combination of increased customer confidence and ongoing investments in key verticals [54] Other Important Information - The company generated $105 million in free cash flow for a yield of 8% and has paid off all debt from the Ventus acquisition [5] - The management emphasized the importance of strategic acquisitions in the industrial IoT space as a top capital deployment priority [6][30] Q&A Session Summary Question: Insights on recurring revenue trends and go-to-market execution - Management highlighted progress in achieving higher attached rates and emphasized the importance of contract extensions and renewals in driving recurring revenue growth [12][14] Question: Revenue guidance and organic growth considerations - Management provided clarity on the integration of Jolt and its impact on revenue guidance, noting strong contributions from various verticals including data centers [14][15] Question: Customer demand and sales cycles - Management observed that while some verticals are accelerating decision-making, others are still cautious due to ongoing uncertainties in the market [23][24] Question: AI infrastructure and data center contributions - The data center segment is a key beneficiary of AI investments, particularly through the Open Gear Console Server business [39] Question: European market dynamics - Management indicated that while North America remains the primary revenue source, Europe presents meaningful opportunities on a country-by-country basis [42] Question: Margin improvement and attach rates - Management confirmed expectations for continued improvement in gross margins as ARR expands, with a goal of achieving 100% attach rates across most product lines by fiscal 2028 [44][45]

Financial Data and Key Metrics Changes - Third quarter revenue was $14 million, up 3% sequentially from the second quarter, and at the midpoint of guidance [17] - Non-GAAP gross margin for Q3 was 44.4%, an increase from 43.8% in Q2, and up 160 basis points year-over-year [18] - Adjusted EBITDA improved to a gain of $0.3 million compared to a loss of $0.4 million in Q2, with non-GAAP net income of $0.1 million or 1 cent per share [19] Business Line Data and Key Metrics Changes - Consumer revenue was $6.7 million, up $1 million sequentially, driven by higher Wi-Fi 7 antenna shipments [17] - Enterprise revenue was $6.9 million, down $0.3 million sequentially due to lower antenna sales, while embedded modems recorded a third consecutive quarter of growth [17] - Automotive revenue was $0.5 million, down $0.3 million sequentially, attributed to lower aftermarket antenna sales [18] Market Data and Key Metrics Changes - Sales to cable operators grew by over 50% year-to-date, driven by the Wi-Fi 7 technology refresh [17] - The consumer market is expected to grow at a double-digit rate for the second consecutive year, supported by the Wi-Fi 7 transition [4] - Embedded modem sales now represent more than half of enterprise market revenue, with expectations for continued double-digit growth [5] Company Strategy and Development Direction - The company aims to transition from a component supplier to a scalable wireless systems solutions company, focusing on financial discipline and customer engagement [16] - Airgain Connect and Lighthouse are identified as growth platforms, with Airgain Connect expected to drive immediate growth and Lighthouse focusing on network infrastructure optimization [11][12] - The company is expanding into emerging markets and applications, including unmanned flight systems and industrial IoT, to create new revenue streams [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustainable growth for 2026, supported by key certifications and customer engagement [21] - The company anticipates modest revenue contributions from Lighthouse in the first half of 2026, with stronger growth expected in the second half [16] - Management remains cautiously optimistic about the impact of government funding climate on sales and project deployments [10] Other Important Information - The company ended the quarter with $7.1 million in cash and equivalents, down $0.6 million sequentially [19] - Non-GAAP operating expenses for Q3 were $6.1 million, reflecting a decrease due to expense realignment and lower G&A expenses [18] - The company expects Q4 revenue in the range of $12 million to $14 million, representing a sequential decline of approximately 7% [20] Q&A Session Summary Question: Inquiry about the recent Wi-Fi 7 design with a Tier 1 carrier - Management confirmed that the customer is an existing Tier 1 operator and this is their flagship gateway for the next generation [22] Question: Revenue impact for 2026 from the new design - Management indicated that visibility for revenue impact in 2026 would improve in the first half of the year as deployment is planned for the second half [23] Question: OPEX fluctuation next year - Management emphasized tight management of OPEX while deliberately investing in growth platforms, aiming for EBITDA break-even or positive [24] Question: Performance of core markets - Management noted that consumer and embedded product lines have been bright spots, with ongoing focus on engineering and sales efforts [25]

Financial Data and Key Metrics Changes - The company reported record revenue of $24 million in Q3 2025, an increase from $23 million in Q2 2025, marking seven consecutive quarters of revenue growth from Q1 2024 to Q3 2025 [4][10] - Gross profit for Q3 2025 increased sequentially by 8% to $8 million compared to $7 million in Q2 2025 [12] - Gross margin for Q3 2025 increased to 32%, up from 30% in Q2 2025 [14] - Net loss per share decreased to $0.07 in Q3 from $0.08 in Q2 2025, while adjusted EBITDA loss per share remained at $0.02 [14] Business Line Data and Key Metrics Changes - The company anticipates deploying over 50,000 units of its products into homes and hotel rooms by the end of Q4 2025, with significant contributions from various projects [5][6] - A major collaboration with a $3 billion mixed-use urban Smart Home City Project in Miami is expected to involve over 500,000 units of advanced smart home technologies [5] - The company is also supplying technologies to a 278-apartment project in Austin, Texas, providing over 10,000 units of its advanced technologies [5] Market Data and Key Metrics Changes - The company has signed an agreement with a prominent U.S. and international real estate developer to deploy advanced smart home technologies in Middle Eastern projects, including Saudi Arabia and Egypt [4][5] - The company is experiencing growth in deferred revenue, indicating an acceleration of revenues primarily from its e-commerce platform [11] Company Strategy and Development Direction - The company is focused on expanding its market penetration through strategic partnerships and collaborations, particularly in the real estate and hotel segments [4][5][15] - The introduction of AI-driven software for its e-commerce platform is expected to increase conversion rates and sales by 30% [7][34] - The company is leveraging a "Razor and Blade" model, where the ceiling receptacle serves as the entry point for higher-ticket items, enhancing revenue potential [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities, particularly in the Middle East and through collaborations with major developers [15][19] - The company is making significant progress towards mandatory safety standardization for its products, which is expected to enhance market acceptance and safety [17][53] - Management highlighted the importance of cash conservation and leveraging relationships with manufacturers to support operations [12][17] Other Important Information - The company raised $5 million in additional capital from leading shareholders, reflecting confidence in its strategy and development [8][10] - As of September 30, 2025, the company reported a total of $13 million in cash, cash equivalents, restricted cash, and receivables [7] Q&A Session Summary Question: Can you provide insight into the near-term revenue outlook and product deployment? - The company expects to deploy over 50,000 products by the end of Q4, with a mix of higher-ticket items contributing to revenue growth [28][29] Question: What specifics can you share about the software upgrade and its impact on revenue? - The software upgrade is expected to be completed by Q1 or Q2 of 2026, aiming to increase conversion rates through AI methods [33][34] Question: What is the status of various projects, including the Marriott Hotel and Miami Smart City? - The Marriott demo has opened doors for more business, while the Miami project is still in the permitting phase, with significant supply expected in 2026 [36][56] Question: How does the company view the Middle East opportunity? - The Middle East is seen as a fast adopter of advanced technologies, with significant growth potential in commercial and residential developments [59][60]