Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $45.6 million, a decrease of $1 million or 2.2% compared to Q2 2024, primarily due to lower product revenue in EMEA and APAC, partially offset by strong growth in service revenue worldwide, which grew by 18% [8][22] - Product revenue decreased by 9% year-over-year, driven by a significant decline in EMEA, while US product revenue increased by 2% [22][23] - GAAP gross profit was $23.9 million, a 6% decline versus the prior year, with a gross profit margin of 52% compared to 55% in the prior year quarter [25] Business Line Data and Key Metrics Changes - Recurring revenue businesses reached 32% of trailing twelve-month sales in Q2, growing by 16% year-over-year, with service and reagent revenue each increasing by 18% [9][10] - FSP unit volume grew by 3% in Q2, led by AURORA analyzers, with particular strength in the US showing 10% year-over-year growth [10][11] - Service revenue continued to deliver strong growth of 18% in Q2 versus the prior year and 21% for the first half [24] Market Data and Key Metrics Changes - Total US revenue was up 7% over the prior year, driven by service and reagents, while EMEA revenue declined by 11% due to lower instrument sales [11][24] - APAC sales declined following a strong Q1, primarily due to longer sales cycles, but showed solid growth on a year-over-year basis [12] - The rest of the world region, including Canada and Latin America, delivered single-digit percentage revenue growth compared to last year's second quarter [12] Company Strategy and Development Direction - The company aims to solidify its market leadership in next-gen cell analysis solutions through innovation and differentiated offerings, including the launch of the Cytec Aurora EVO system [17][31] - The focus remains on expanding the installed base globally, which is expected to drive growth in instrument revenue and sustainable recurring revenue in service and reagent businesses [31][32] - The company is open to M&A opportunities that have synergy potential, while also investing in organic growth through its reagent and service segments [48][50] Management's Comments on Operating Environment and Future Outlook - Management noted that the capital equipment spending environment remains challenging, particularly in the academic and government sectors, but expects a recovery over time [14][32] - The company narrowed its full-year 2025 revenue guidance to a range of $196 million to $205 million, reflecting overall growth of -2% to +2% compared to 2024 [29] - Management expressed confidence in the growth of recurring revenue streams and the core business despite the current market challenges [29][30] Other Important Information - The installed instrument base grew by 146 units in Q2, bringing the total to 3,295 units, indicating steady expansion across a diverse customer base [15][16] - The company reported a positive free cash flow of $900,000 in Q2, despite stock repurchases totaling $4.5 million [28] Q&A Session Summary Question: How is the Flow Cytometry market performing and are there any competitive concerns? - Management indicated that the overall flow cytometry market is experiencing a downturn due to funding challenges, but the company continues to grow its core business and unit volume [34][35] Question: How comfortable is the company with the second half guidance? - Management expects stronger performance in the second half, driven by recurring revenue growth, while capital spending is anticipated to be back-end weighted [40][41] Question: Is the company open to M&A opportunities? - Management confirmed openness to M&A, focusing on opportunities with synergy potential in existing markets or adjacencies [48][49] Question: What is the expected contribution from new products like AURORA EVO? - AURORA EVO is expected to be a significant contributor to revenue, supporting margins, while MUSE Micro is not expected to have a major impact on margins [64][65] Question: What are the drivers of service revenue growth? - Service revenue growth is driven by the installed base, with expectations that this growth will continue based on past performance [66][67]

Financial Data and Key Metrics Changes - The company achieved record sales and adjusted EBITDA for Q3 2025, with adjusted EBITDA at $58 million, a 20% increase compared to the previous year [10][23][26] - Revenue for Q3 reached $398 million, which is $65 million or 20% higher than the prior year [11][23] - Free cash flow for the quarter was $52 million, significantly higher than the previous year [23][30] - The company raised its full-year guidance for adjusted EBITDA to $210 million, reflecting a 14.5% margin [33][42] Business Line Data and Key Metrics Changes - The company sold 2,467 buses in Q3, marking a 15% increase year-over-year [23] - Electric vehicle (EV) sales reached a record 271 units, which is 33% higher than the previous year [25][26] - Parts revenue remained flat at $26 million year-over-year [26] Market Data and Key Metrics Changes - The backlog at the end of Q3 was nearly 4,000 units, indicating a slight decrease due to tariff uncertainties [24][25] - The average selling price for buses increased by approximately $7,700 per unit compared to the previous quarter [14][26] - The company noted that the fleet is aging, leading to a heavy replacement cycle, which is expected to drive future demand [13][54] Company Strategy and Development Direction - The company is focusing on enhancing its manufacturing strategy, including automation and production efficiency improvements [6][9] - Investment in differentiated products and features is planned to drive top-line growth [9][10] - The company aims to maintain a competitive edge in alternative-powered vehicles, particularly in the EV segment [7][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for EVs, despite current demand softening due to tariff uncertainties [7][16] - The company is well-positioned to navigate tariff impacts to achieve a margin-neutral outcome [10][90] - Management believes the current order drop is temporary and expects a pickup in orders as tariff uncertainties stabilize [54][90] Other Important Information - The company has initiated production at its new MicroBird plant, which will double small bus capacity [18][19] - A new share repurchase program of up to $100 million has been approved, reflecting strong cash flow generation [32][45] - The company is also working on a new commercial chassis, expected to enter production in 2026 [20][21] Q&A Session Summary Question: Order and backlog commentary - Management noted that the drop in backlog was consistent with industry trends and attributed it to tariff uncertainties, which are expected to stabilize [50][52][54] Question: Operational improvements and margin sustainability - Management confirmed that operational improvements have contributed to margin stability and that they are less sensitive to product mix changes [58][60] Question: EV sales visibility and backlog - The company has 500 EV units in backlog and projects to sell about 200 units in Q4, with additional opportunities expected from EPA funding [68][70] Question: Pricing strategy and market conditions - Management discussed their pricing strategy, emphasizing that tariffs are viewed as a tax and that customers understand the need for price adjustments [88][92] Question: Long-term growth outlook and chassis orders - Management highlighted that the new commercial chassis and MicroBird expansion will contribute to revenue growth and profitability [98][99]

Financial Data and Key Metrics Changes - In Q2 2025, net product sales reached approximately $94.8 million, representing an 82% year-over-year growth [22][24] - FILSPARI net product sales in the U.S. were approximately $71.9 million, showing significant year-over-year growth [22][16] - The net loss for Q2 2025 was $12.8 million or $0.14 per basic share, compared to a net loss of $70.4 million or $0.91 per basic share for the same period in 2024 [25] Business Line Data and Key Metrics Changes - FILSPARI's performance in the IgA nephropathy market was highlighted, with strong demand from both new and repeat prescribers [5][16] - The commercial team reported 745 new patient start forms in Q2, a 43% increase compared to the same period last year [17] - THIOLA and THIOLA EC contributed $23 million in net product sales for the second quarter [22] Market Data and Key Metrics Changes - The company is preparing for a potential launch of FILSPARI for FSGS, with a PDUFA date set for January 13, 2026 [14] - The addressable patient population for FILSPARI in the U.S. is estimated at 70,000, with about 70% having elevated proteinuria levels below 1.5 grams per gram [81] Company Strategy and Development Direction - The company aims to establish FILSPARI as the foundational therapy for IgA nephropathy and is advancing its pipeline for rare diseases [5][10] - The strategy includes generating robust clinical evidence, broad access aligned with full approval indications, and real-world clinical experience [6][7] - The company is focused on expanding its commercial organization in preparation for the potential FSGS launch [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of FILSPARI, driven by robust underlying demand and the anticipated removal of certain REMS [26][20] - The management team highlighted the importance of early intervention in treatment and the growing recognition of FILSPARI's nephroprotective profile [18][19] - The company remains optimistic about its strategy and the feedback from the medical community [20] Other Important Information - The company recognized $19.6 million in licensing collaboration revenue, including a one-time milestone payment of $17.5 million from CSL Vifor [23] - As of June 30, 2025, the company had cash, cash equivalents, and marketable securities totaling approximately $319.5 million [25] Q&A Session Summary Question: What do you anticipate the major topics could be for the FSGS AdCom? - Management indicated the need for educational components about the disease and the importance of proteinuria as a validated endpoint [31][34] Question: Can you comment on the cadence and level of engagement with the FDA regarding the REMS update for FILSPARI? - Management noted that interactions with the FDA have been progressing as expected, similar to previous experiences [38][40] Question: When will you gain insight into the timing of the advisory committee panel meeting? - Management stated that the advisory committee meeting is expected to take place sometime in Q4, given the PDUFA date of January 13 [45][47] Question: What would it take to remove the REMS entirely? - The strategy involves a two-step process, first seeking to lessen testing frequency and then pursuing full removal [51][52] Question: How are the new data from recent studies being received by the medical community? - The data have been received positively, with excitement about the nephroprotective effects of FILSPARI [54][56] Question: Can you comment on the dynamics and breakdown of growth contributions from stocking, new patients, and persistence rates? - Management confirmed that the revenue growth was performance-driven, with high persistence rates and strong demand [59][62] Question: What are the headwinds or bottlenecks in terms of uptake? - Management identified the urgency to treat patients as a key issue, but noted that the introduction of new treatment options is expected to help [105][106]

Financial Data and Key Metrics Changes - Total revenue for the second quarter of 2025 was $8,500,000, an 18% decline from $10,400,000 in 2024 [28] - Core revenue increased to $8,200,000, representing an 8% year-over-year growth compared to $7,600,000 in the prior year [28] - Gross margin was 82% in 2025, down from 86% in the previous year [30] Business Line Data and Key Metrics Changes - Instrument revenue grew 22% year-over-year to $2,100,000, up from $1,800,000 in 2024 [28][12] - License revenue remained flat at $2,600,000 compared to the same quarter in 2024 [28] - Processing Assembly (PA) revenue increased to $3,100,000, up from $3,000,000 in 2024 [28] Market Data and Key Metrics Changes - 42% of core revenue was derived from SPL customers in 2025, down from 51% in the prior year [30] - SPL program-related revenue was $300,000 in 2025, significantly lower than $2,900,000 in 2024 [30] Company Strategy and Development Direction - The company is focusing on disciplined investments while aiming for profitability with existing capital [6] - MaxSight is integrating SecurDx, which is seen as a substantial long-term opportunity [6] - The company plans to return to growth in 2026, driven by new platform launches and increasing clinical programs [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged short-term external headwinds impacting growth expectations for the second half of 2025 [7] - The company is lowering its core revenue guidance for 2025 to flat to down 10% compared to 2024 [8] - Despite current challenges, management remains confident in the long-term value proposition of MaxSight within the cell and gene therapy industry [25] Other Important Information - The company officially delisted from the AIM markets on June 26, 2025, and is now solely listed on NASDAQ [26] - MaxSight expects to end 2025 with approximately $155,000,000 in cash equivalents and investments [34] Q&A Session Summary Question: Impact of manufacturing operations reorganization by the largest customer - Management confirmed that the reorganization is a short-term consolidation and will not impact future licensing revenue [36][37] Question: Opportunities for additional efficiencies within the organization - Management is focused on achieving profitability and is continuously looking for efficiencies across the organization [42][43] Question: Quarterly cadence expectations from Q3 to Q4 - Slight weight towards Q4 is expected, but not materially significant [46][47] Question: Performance expectations for instrumentation sales - Instrument sales are expected to continue performing well, with a focus on lower-priced systems [49][50] Question: SPL partnerships and program prioritization - There is a shift towards allogeneic therapies among partners, which is favorable for the company's systems [56][57] Question: PA revenue benefits and future expectations - PA revenue benefited from a single order, but this is not expected to have a material impact on future guidance [62][63] Question: Impact of macro headwinds on SPL pipeline - No significant impact on the SPL pipeline is observed, with continued confidence in signing new SPLs [65][66]

Financial Data and Key Metrics Changes - The company ended Q2 2025 with $2.1 billion in cash and investments, including $250 million from the Royalty Pharma partnership [19] - R&D expenses increased to $224.1 million in 2025 from $134.9 million in 2024, primarily due to clinical trial and manufacturing expenses [20] - G&A expenses rose to $40.6 million in 2025 from $21.7 million in 2024, driven by personnel-related expenses and stock-based compensation [21] - The net loss for 2025 was $247.8 million, compared to $133.2 million in 2024, attributed to higher operating expenses [22] - The projected full-year 2025 GAAP net loss is estimated to be between $1.03 billion and $1.09 billion [23] Business Line Data and Key Metrics Changes - The company has three clinical-stage RasOn inhibitors: TiraxonRasib, Oleuronrasib, and Zoldonrasib, with ongoing trials in pancreatic cancer and non-small cell lung cancer [6][10] - Diraxonrasib received breakthrough therapy designation from the FDA for previously treated metastatic pancreatic cancer with KRAS G12 mutations [7] - Oleuronrasib was granted breakthrough therapy designation for locally advanced or metastatic KRAS G12C non-small cell lung cancer [12] Market Data and Key Metrics Changes - Enrollment for the RESLU-302 Phase 3 trial in pancreatic cancer is progressing well, with expectations to complete enrollment this year [8] - The company is also initiating a first-line metastatic pancreatic cancer registrational trial, with plans to share trial design later this year [9] Company Strategy and Development Direction - The company aims to establish a leading global RAS-targeted franchise for treating RAS addicted cancers, focusing on innovative targeted therapies [17] - A partnership with Royalty Pharma provides $2 billion in committed capital to support clinical development and commercialization plans [18] - The company is preparing to enter clinical development for RMC-5127, a RasOn G12V selective inhibitor, expected to initiate a Phase 1 trial in 2026 [15] Management's Comments on Operating Environment and Future Outlook - Management emphasized the urgency of advancing development for patients with pancreatic cancer due to significant unmet medical needs [7] - The company is confident in its ability to establish new global standards of care for patients with RAS addicted cancers [24] - Management highlighted the importance of safety and tolerability in ongoing assessments to inform study designs for future trials [32] Other Important Information - The company is collaborating with Summit Therapeutics to evaluate combinations of their bispecific antibody with RasOn inhibitors [14] - The collaboration with Iambic aims to enhance drug discovery through AI capabilities, potentially improving lead discovery and optimization processes [16] Q&A Session Summary Question: Enrollment progress for RESLU-302 and chemotherapy combinations - Management indicated that enrollment is progressing well, with a solid position to share data in 2026. Efficacy assessments will inform study design, but safety and tolerability remain primary concerns [29][32] Question: Chemotherapy regimens and data readout in 2026 - Management confirmed that the chemotherapy regimens are within standard practice and that the 2026 data readout refers to the first analysis, which may be interim or final [40][42] Question: Data update for frontline pancreatic cancer trial - Management stated that they are building a sufficient data set to guide decision-making and will share more information as it becomes available [46] Question: RAF upregulation and combination therapies - Management acknowledged RAS amplification as a challenge but emphasized that therapeutic strategies are in place to address it. They also noted that there is no evidence that degraders are superior to inhibitors [60][62] Question: Commercialization readiness and field team build-out - Management confirmed that the US field team is being built out, with a focus on market shaping activities and engagement with oncologists [70][71]

Financial Data and Key Metrics Changes - Q2 revenue grew 18% year over year in constant currency and 19% on an as-reported basis, with subscription revenue increasing by 19% year over year [27][28] - Operating margin for Q2 was 17%, flat compared to the previous year and up three points sequentially [31] - Net income for Q2 was $117 million, or $2.19 per fully diluted share [31] - Free cash flow was $116 million, representing 15% of revenue in Q2 [31] Business Line Data and Key Metrics Changes - Total customers grew to 268,000 globally, with over 9,700 net customer additions in Q2, reflecting an 18% year-over-year increase [27][28] - Sales Hub seat upgrades increased by 71% year over year, while Service Hub seat upgrades surged by 110% year over year [7][8] - 61% of new Pro Plus customers landed with multiple hubs, and 42% of the installed base by ARR now uses all three core hubs [6] Market Data and Key Metrics Changes - Domestic revenue grew 18% year over year, while international revenue growth was 19% in constant currency and 21% as reported, representing 48% of total revenue [28] - The company saw a significant increase in leads from diversified channels, with YouTube leads up 96% year over year and newsletter leads growing by 50% [14][15] Company Strategy and Development Direction - The company is focusing on AI integration across its platform to enhance customer experience and operational efficiency [18][24] - HubSpot is adapting to changes in marketing dynamics, particularly the decline in organic search traffic and the rise of AI-driven search [12][13] - The strategy includes diversifying lead generation channels and enhancing the value of the core platform through AI capabilities [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and innovation pace, despite a volatile macro environment [26][33] - The expectation for Q3 revenue is in the range of $785 million to $787 million, reflecting a 16% year-over-year increase in constant currency [33] - For the full year of 2025, total as-reported revenue is expected to be between $3.08 billion and $3.09 billion, up 17% year over year [34] Other Important Information - The company has launched AI features that are gaining traction, with over 4,000 customers adopting the customer agent [18][19] - The company is becoming an AI-first organization, with AI handling nearly half of support chats in Q2 [25] Q&A Session Summary Question: Changes in Inbound Marketing Due to AI - Management acknowledged significant shifts in inbound marketing due to AI, with organic search being disrupted and a need for companies to adapt their strategies [38][40] Question: Core Seats and Customer Personas - The core seat is seen as a growth lever, expanding opportunities for various customer personas beyond traditional sales and service roles [50][52] Question: Engagement with AI Agents - Early data shows strong engagement with AI agents, with high resolution rates and significant ticket deflections [56][57] Question: Billings Growth vs. Revenue Growth - Management noted that billings growth outpacing revenue growth is a positive indicator of business momentum, driven by larger deals and longer billing terms [70][72] Question: Customer Adoption of AI Agents - The company is seeing good adoption of AI agents, with predictable value leading to potential monetization in the future [78][79] Question: Marketing Hub Evolution - The Marketing Hub is evolving to help customers navigate changes in marketing dynamics, focusing on content distribution across various channels [108][110]

Financial Data and Key Metrics Changes - The company achieved record second quarter sales of $241 million, representing a 15% year-to-date growth with $475 million in worldwide sales [19][20] - Gross margin for the second quarter was 52%, reflecting an increase year-over-year and compared to the first quarter, driven by pricing improvements [26][32] - The company expects to achieve $1 billion in worldwide sales for 2025, with a geographic mix of approximately $700 million in the U.S. and $300 million outside the U.S. [30][31] Business Line Data and Key Metrics Changes - In the U.S., pump shipments saw a year-over-year increase, with renewals making up over half of the shipments, indicating strong retention [6][7] - The Tandem Mobi platform received positive feedback and contributed to new user demand, with year-over-year increases in adoption [9] - The flagship t:slim X2 pump continues to receive high customer satisfaction scores, with new integrations announced [10] Market Data and Key Metrics Changes - International markets delivered strong performance, driven by demand for t:slim and increasing pump renewals [13][25] - The company is preparing for the launch of Tandem OBI in international markets after receiving CE Mark [14] - The company anticipates a reduced headwind of approximately $10 million from transitioning to direct sales in international markets [30][52] Company Strategy and Development Direction - The company is focused on expanding its multi-channel market access strategy, including pharmacy channel initiatives to lower out-of-pocket costs for patients [5][21] - There is a strategic push to bring Tandem's technology to type two diabetes patients, with pilot activities showing promising adoption rates [11][12] - The company aims to modernize its business systems and expand its sales force to improve efficiency and effectiveness [62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth and highlighted the importance of ongoing commercial transformation efforts [30][62] - The competitive environment remains intense, with new market entrants causing some caution in the second half of the year [66][112] - Management noted that traditional Medicare represents a small portion of sales, and changes in reimbursement structures could ultimately benefit the business [41][24] Other Important Information - The company ended the quarter with $315 million in total cash and investments, with notable cash uses including settling convertible notes and a settlement agreement [29] - The company is committed to innovation, with ongoing R&D efforts and a focus on enhancing its product portfolio [35][37] Q&A Session Summary Question: Impact of CMS proposal on business - Management does not anticipate a material impact from the CMS proposal, viewing it as a potential driver for more people to adopt pump therapy [41][42] Question: Progress on pharmacy channel - The pharmacy channel is expected to bring more volume and revenue, with plans to move t:slim supplies into this channel starting in Q4 [45][47] Question: Changes in international outlook - The international business has performed well, with a reduced headwind expected from transitioning to direct sales [52] Question: U.S. renewal rates and new patient numbers - Renewals grew double digits and represent over half of shipments, with a focus on MDI conversions for new starts [57][58] Question: Lowered U.S. guidance - The lowered guidance reflects ongoing commercial transformation efforts and increased competition from new entrants [62][112]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $264.6 million, representing a 9% year-over-year increase [5][27] - Debut net product sales were $96.1 million, up 14% year-over-year, with a gross to net adjustment of 23.3% [27] - NUPLAZID net product sales were $168.5 million, up 7% year-over-year, with a gross to net adjustment of 24.6% [27][28] - R&D expenses increased to $78 million from $76.2 million in the previous year, while SG&A expenses rose to $133.5 million from $117.1 million [28] Business Line Data and Key Metrics Changes - Debut saw a patient base increase to 987 unique patients, up from 954 in Q1 2025 and 920 in Q4 2024, indicating strong growth in new patient starts and persistency [9][10] - NUPLAZID referrals increased by 17% year-over-year, with both referrals and new prescriptions rising sequentially from Q1 to Q2 [15][16] Market Data and Key Metrics Changes - The community setting accounted for approximately three-quarters of new referrals for Debut, indicating successful penetration beyond centers of excellence [41] - The company is expanding its reach in the EU, with named patient supply available in multiple countries [13] Company Strategy and Development Direction - The company is focused on accelerating the commercial trajectory of Debut and sustaining long-term growth for NUPLAZID, while advancing a deep pipeline through rigorous clinical development [31] - The company raised the low end of its NUPLAZID guidance for the year, reflecting confidence in business performance [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued growth of Debut and NUPLAZID, supported by direct-to-consumer campaigns and field execution [5][15] - The company anticipates sustained growth through the second half of the year and beyond, with several key milestones in the pipeline [16][19] Other Important Information - The company hosted its first R&D Day, showcasing nine programs in development and five Phase II or Phase III data readouts expected through 2027 [7][19] - The company is progressing through the review process with EMA for trofinetide, with a decision expected in 2026 [21] Q&A Session Summary Question: About ACP101's top line approach and key risks - Management indicated that the focus will be on the primary endpoint and key safety and tolerability overview in the top line announcement, with ongoing monitoring of assessment variability [33][34] Question: Momentum in Debut and community setting penetration - Management reported that approximately three-quarters of new referrals came from non-center of excellence accounts, indicating successful penetration [41] Question: Discontinuations for Debut and inventory changes - Discontinuations remained below 10%, reflecting a stable patient base, and there were no significant inventory changes reported [73][74] Question: Growth perspective for 2026 - Management expects continued growth for both Debut and NUPLAZID, driven by new field force models and ongoing campaigns [96][100]

Financial Data and Key Metrics Changes - The company generated $1.6 billion in top line aggregate subscriber value, a 40% year-over-year increase, significantly exceeding guidance [6][19] - Contracted net value creation reached $376 million, more than doubling from the previous quarter and well above guidance [6][19] - Cash generation was $27 million, marking the fifth consecutive quarter of positive cash generation, although lower than prior guidance [7][8][22] - The company ended the quarter with $618 million in unrestricted cash, a $13 million increase from the prior quarter [9] Business Line Data and Key Metrics Changes - The attachment rate of storage offerings grew to an all-time high of 70% of customer additions [6] - Subscriber value increased to approximately $54,000, a 22% increase compared to the prior year [16] - Net subscriber value grew by 182% year-over-year to $17,000, the highest in the company's history [18] Market Data and Key Metrics Changes - The company represents over 40% of storage installations and more than one-third of subscription volumes nationally [13] - The enrollment in Home to Grid programs grew by 300% year-over-year, with over 71,000 customers participating [10] Company Strategy and Development Direction - The company is transitioning to lead with storage and provide sophisticated products and services, positioning itself as a significant independent power producer [9][10] - The focus remains on running a sustainable business with strong margins and high-quality installations, even as market dynamics present growth opportunities [13] - The company plans to have more than 10 gigawatt hours of dispatchable energy online by 2029 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate strong financial returns under the new legislation, despite the upcoming sunset of certain tax credits [12][13] - The company anticipates a cash generation outlook of $200 million to $500 million for the full year, reflecting strong operating performance [28] - Management noted that cash generation may be back-weighted in the year due to working capital timing and market activity [42] Other Important Information - The company has paid down $21 million in recourse debt during the quarter and has a plan to pay down $100 million or more in 2025 [26] - The company has secured $1.7 billion in tax equity thus far in 2025, providing a strong capital runway [23] Q&A Session Summary Question: Clarification on safe harbor and construction timelines - Management confirmed that the safe harbor extends the runway beyond 2028 and is working to articulate the loss in margin from the solar ITC [31][32] Question: Cash generation guidance and working capital - Management indicated that cash generation guidance reflects working capital effects and expectations for the balance of the year [34][35] Question: Factors driving net value creation increase - Management attributed the increase to sequential growth in volume, margin expansion from ITC increases, and operating cost efficiencies [40][41] Question: Safe harbor financing needs - Management stated that they are pursuing a capital-light strategy for safe harbor activities and are assessing the impact of executive orders on future plans [45][46] Question: Recurring revenue from grid services - Management noted that current recurring revenue from enrolled customers is around $20 million per year, with expectations for growth as more customers enroll [51][52] Question: State-level subsidies and policy programs - Management highlighted the importance of state-level programs and the potential for enhancements in renewable commitments [79][80] Question: Cost savings and efficiencies - Management emphasized ongoing efforts to reduce customer acquisition costs and improve operational efficiencies, aided by AI innovations [70][71] Question: Market dynamics post-25D tax credit - Management anticipates a 25% contraction in the overall market but believes some volume will flow to the company as partners transition to third-party owned models [60][61]

Financial Data and Key Metrics Changes - For Q2 2025, the company generated adjusted EBITDA of $3.9 billion, an increase from $3.8 billion in Q2 2024, indicating a growth in operational performance [5] - The ECF attributable to partners was approximately $2 billion, with $2 billion spent on organic growth capital in the first half of 2025 [5] - The company expects to be at or slightly below the lower end of its guidance range of $16.1 billion to $16.5 billion for 2025 due to weakness in the Bakken and slower recovery in dry gas areas [19][20] Segment Performance Changes - NGL and refined products segment adjusted EBITDA decreased to $1 billion from $1.1 billion in 2024, impacted by lower optimization gains and blending margins [6] - Midstream segment adjusted EBITDA increased to $768 million from $693 million, driven by a 10% increase in legacy volumes in the Permian Basin [6] - Crude oil segment adjusted EBITDA decreased to $732 million from $800 million, affected by lower transportation revenues on the Bakken pipeline [7] - Interstate natural gas segment adjusted EBITDA rose to $470 million from $392 million, attributed to higher contracted volumes [8] - Intrastate natural gas segment adjusted EBITDA decreased to $284 million from $328 million, due to reduced pipeline optimization [8] Market Data and Key Metrics Changes - The company reported strong volumes in midstream gathering, crude transportation, and NGL export volumes, indicating robust market demand [5] - The Permian Basin processing volumes reached a record of nearly 5 Bcf per day, reflecting increased operational capacity [14] Company Strategy and Industry Competition - The company plans to spend approximately $5 billion on organic growth capital projects in 2025, focusing on NGL transportation and pipeline expansions [9] - New projects like the Desert Southwest Pipeline and Hugh Branson pipeline are expected to enhance the company's position in the natural gas market [10][12] - The company aims to leverage its extensive pipeline network and storage capabilities to meet growing energy demands, positioning itself as a leader in the industry [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing significant growth in energy resource demand driven by natural gas and NGLs [20] - The company is confident in its ability to meet future demand with its extensive pipeline network and strategic projects [21] - Management acknowledged challenges in the Bakken and dry gas areas but remains bullish about long-term growth prospects [19][60] Other Important Information - The company has a significant backlog of contracted growth projects expected to generate strong returns and enhance its integrated value chain [23] - The Lake Charles LNG project is progressing, with significant interest from potential customers and ongoing discussions for equity sell-down [17][18] Q&A Session Summary Question: Can you provide more detail on the commercialization efforts related to data centers? - Management highlighted the complexity and time required for data center projects, noting recent significant deals in Texas and ongoing negotiations for additional contracts [26][30][31] Question: Can you provide color on the expected build multiple for the Desert Southwest project? - Management expressed confidence in selling out the project and mentioned potential for expansion due to high demand [34][35] Question: What is the status of the Lake Charles EPC quote process? - Management confirmed that the EPC contract is progressing as expected and is aligned with their financial projections [40][42] Question: How does the company view construction cost risk sharing for the Desert Southwest project? - Management indicated a traditional structure where the midstream company bears the cost risk, with confidence in meeting estimated costs [44][55] Question: What percentage of the overall business could gas represent in the future? - Management refrained from providing an exact percentage but indicated that gas projects are expected to grow significantly as a portion of the overall business [103][104]