Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $83.3 million, a decline of 16% year-over-year, but adjusted EBITDA was 44% above the midpoint of guidance [20][21] - Adjusted EBITDA for Q3 was $16.6 million, representing an adjusted EBITDA margin of 20% [25] - Non-GAAP gross margin was 80%, down nearly 800 basis points year-over-year [23] Business Line Data and Key Metrics Changes - Redemption revenue was $72.1 million, down 15% year-over-year, with third-party publisher redemption revenue at $49.3 million, down 4% year-over-year, and direct-to-consumer redemption revenue at $22.8 million, down 31% year-over-year [21] - Total redeemers increased to 18.2 million, up 19% year-over-year, indicating growth in third-party redeemers [22] Market Data and Key Metrics Changes - The macro environment remains challenging for CPG companies, with consumer sentiment near an all-time low, impacting spending behavior [7][8] - Clients are adopting a cautious approach, leading to a wait-and-see strategy regarding discretionary spending [8] Company Strategy and Development Direction - The company is transforming into a full-service performance marketing platform for the CPG industry, focusing on automation and scale for 2026 [4][5] - A strategic partnership with Circana was announced to enhance measurement capabilities, allowing clients to receive independent lift studies [5][9] - The launch of LiveLift aims to help brands drive incremental sales at scale, with positive initial client feedback [6][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing macroeconomic challenges and the need for rigorous measurement of marketing ROI [8][9] - The company expects to bring LiveLift to market in a more scaled and automated fashion in 2026, with a focus on making it easier for clients to execute campaigns [18][19] Other Important Information - Non-GAAP operating expenses were down 1% year-over-year, but investments related to transformation were up approximately 11% [24][25] - The company ended Q3 with $223.3 million in cash and cash equivalents and repurchased approximately 1.4 million shares [25][26] Q&A Session Summary Question: Understanding LiveLift's timeline and impact - Management confirmed that they are on track for about 20 LiveLift pilots by year-end, with 83% of completed pilots leading to further campaign investments [32][33] - The timeline for clients to move from pilot to budget allocation can take up to 12 months, influenced by campaign performance and client budget cycles [34] Question: Insights on macroeconomic headwinds - Management noted that consumer sentiment is low, and clients are taking a cautious approach due to ongoing macroeconomic uncertainties, including tariffs and SNAP disruptions [36] Question: Integration of AI within the platform - AI is being used to model pre-campaign projections and optimize campaign parameters, significantly improving efficiency in campaign setup [37][38] Question: Roadmap for reducing friction across the platform - Management emphasized the need to streamline processes and improve client interactions, focusing on making it easier for clients to work with the company [39][40] Question: Contribution from Instacart and DoorDash - The partnerships with Instacart and DoorDash are progressing well, with significant growth in redeemers attributed to these channels [46][47]

Financial Data and Key Metrics Changes - Total worldwide revenue for Q3 2025 was $21.5 million, a 5% increase from $20.4 million in Q3 2024, and a 4% increase on a constant currency basis [12] - US revenue in Q3 2025 was $14 million, a 1% increase from $13.8 million in the prior year [12] - International revenue for Q3 2025 was $7.5 million, a 15% increase compared to $6.6 million in the same period last year [12] - Gross margin for Q3 2025 was approximately 75%, up from 74% in the same period last year [12] - Net loss for Q3 2025 was $14 million, or $0.34 per share, compared to a $14.1 million net loss, or $0.36 per share, for the same period last year [15] - Adjusted EBITDA loss for Q3 2025 was $8.2 million, compared to $8.1 million in Q3 2024 [15] - Full year 2025 revenue guidance is updated to a range of $89-$90 million [16] Business Line Data and Key Metrics Changes - Research and development expenses for Q3 2025 were $4.8 million, an increase of 29% compared to $3.7 million in the prior year [13] - Sales, general, and administrative expenses for Q3 2025 were $25.6 million, up 1% from $25.4 million in Q3 2024 [14] Market Data and Key Metrics Changes - The company added nine new US centers during Q3 2025 [12] - Growth in international revenue was driven by major markets in Europe, partially offset by a reduction of revenue from China [12] Company Strategy and Development Direction - The company aims to improve execution and accelerate profitable growth while focusing on areas with the highest return on capital [9][10] - The management acknowledges the need to realign spending with growth expectations to return to a sustainable path to profitability [9] - The company plans to prioritize projects that deliver the greatest impact and align with sustainable, profitable growth [17] Management's Comments on Operating Environment and Future Outlook - Management recognizes challenges in the US market, including slowed growth and the need for improved execution [8][9] - There is optimism about the potential to enhance growth by aligning underperforming territories with those performing well [9] - The management is committed to extending the cash runway and improving operating leverage [15][44] Other Important Information - The company has a market-leading product, the Zephyr valves, which fulfill a significant unmet need in severe emphysema patients [6] - The company has established sufficient reimbursement for its products in nearly all countries where it operates [7] Q&A Session Summary Question: Exploration of alternate strategic pathways - Management is focused on ensuring profitable business operations and is not ready to speculate on alternative strategies at this early stage [20][22] Question: Reasons for US growth deceleration despite new center additions - Management acknowledges the complexity of the situation and is optimistic about improving performance in underperforming territories [23] Question: Addressing patient referral and workup process complexities - Management agrees on the complexity and emphasizes the need for efficient processes to move patients through treatment [26][27] Question: Guidance revision and confidence in achieving targets - Management provides a realistic view on guidance, acknowledging that some growth initiatives have not met expectations but sees opportunities for improvement [36][38] Question: Extending cash runway and reallocating expenses - Management confirms that extending the cash runway involves reallocating expenses to areas with better returns rather than seeking external financing [42][44] Question: Specific areas to pull back on in strategy - Management is not ready to discuss specific areas for pullback but is analyzing data to make informed decisions moving forward [46][47]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $5.1 million, down from $28.9 million in the same quarter of 2024 [10][18] - Total revenue reached $378 million, an increase of 8.7% year-over-year, or 9.1% on a constant currency basis [4][10] - Net loss for the quarter was $11.1 million compared to a net income of $20 million in the prior year [10][19] - Adjusted earnings per share was $0.04, down from $0.22 in the prior year [20] Business Line Data and Key Metrics Changes - Revenue from paid content grew by 0.8% on a constant currency basis, driven by strength in Japan and the rest of the world, but offset by a decline in Korea [12] - Advertising revenue decreased by 8.9% on a constant currency basis, with declines in Korea and the rest of the world [13] - IP adaptations revenue increased by 171.8% year-on-year on a constant currency basis, driven by theatrical releases in Korea [14] Market Data and Key Metrics Changes - In Korea, revenue grew by 22.2% year-over-year on a constant currency basis, despite a decline in advertising [15] - Japan's revenue growth was 2% year-over-year, with MAU increasing by 12.6% [16] - The rest of the world saw a revenue decline of 0.7% year-over-year, primarily due to advertising declines [17] Company Strategy and Development Direction - The company is focusing on expanding its partnership with Disney to develop a new digital comics platform featuring over 35,000 comics [5][6] - The launch of video episodes aims to enhance user engagement and attract new users [6][7] - The company plans to co-produce 10 fan-favorite WEBTOON series with Warner Bros. Animation for global distribution [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver growth despite challenges, citing strong partnerships and product innovations [21] - The guidance for Q4 2025 anticipates a revenue decline of 5.1% to 2.3% on a constant currency basis, with expected revenue between $330 million and $340 million [20] - Management highlighted the importance of IP adaptations for user engagement and revenue growth [9][38] Other Important Information - The company is experiencing a decline in overall MAU by 8.5%, primarily due to issues with Wattpad [11][31] - Gross profit for the quarter declined by 9.4%, resulting in a gross margin of 21.9% compared to 26.3% in the prior year [18] Q&A Session Summary Question: Can you elaborate on the long-term vision of the Disney partnership? - Management indicated that the collaboration with Disney is still in early stages and aims to create original stories while maintaining the fundamental margin structure of the business [24][25] Question: What early engagement or monetization metrics are you seeing with video episodes? - Management noted that it is too early to provide specific metrics but expressed optimism about the potential of video episodes to enhance user engagement [26][27] Question: Any updates on the Warner partnership and its economic terms? - Management stated that while they are excited about the partnership with Warner Bros. Animation, they are not ready to disclose specific economic terms yet [28][30] Question: How should we think about web novel users going forward? - Management acknowledged that Wattpad is a significant driver of MAU declines but emphasized its importance as a source of IP [31][33] Question: Can you discuss the drivers of the Q4 guidance? - Management explained that the anticipated revenue decline is primarily due to the timing of IP adaptations and not a fundamental business health issue [36][38]

Financial Data and Key Metrics Changes - Dolphin Entertainment reported a revenue increase of 16.7% year-over-year to $14.8 million in Q3 2025, with operating income turning positive at $300,000 despite $600,000 in non-cash amortization expenses [3][9] - Adjusted operating income reached over $1 million, representing 6.9% of revenue, up from 4.5% in Q2 2025 [4][9] - The net loss for Q3 2025 was $365,494, a significant improvement from a net loss of $8.7 million in Q3 2024 [9][10] Business Line Data and Key Metrics Changes - The performance was driven by organic growth across the same agencies as the previous year, indicating strong operational consistency [4][14] - 42West, a key subsidiary, showed strong performance with a positive outlook for Q4 due to a good lineup of films and successful festival participation [16] Market Data and Key Metrics Changes - The company noted that it has been relatively unaffected by external factors such as tariffs and the government shutdown, maintaining strong operational results [28] Company Strategy and Development Direction - The company is focused on leveraging cross-selling opportunities among its subsidiaries to enhance growth and client acquisition [14][15] - Dolphin Entertainment aims to balance investing in growth while achieving profitability, with expectations of continued strong performance into Q4 and beyond [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, highlighting the strength of its diversified revenue and client base [39] - The CEO emphasized the importance of operational performance and the positive reception of their recent film, Youngblood, at the Toronto International Film Festival [25][26] Other Important Information - The company has simplified its financial statements, reducing below-the-line expenses to primarily interest expense, which clarifies operational performance [5][6] - The CEO has initiated a stock buying program, indicating confidence in the company's undervalued stock price [31][34] Q&A Session Summary Question: What were the key drivers of organic growth? - Management highlighted that the organic growth of 16.7% was driven by consistent performance across the same agencies without one-time events [12][14] Question: How does the fourth quarter look for 42West? - Management expressed optimism for Q4, citing a strong start and good momentum from 42West's recent performance [16] Question: Can you comment on the impact of recent hires at The Door and Disrupt Agency? - Management noted that strategic hires at The Door are enhancing its client base and revenue, with significant year-over-year growth [17][18] Question: How is Shortfire Media performing? - Management indicated that Shortfire Media has a broad client base and is collaborating effectively with other subsidiaries, contributing to overall growth [20][21] Question: What is the outlook for Youngblood? - Management is optimistic about announcing a distribution partner for Youngblood soon, following its successful premiere at the Toronto International Film Festival [24][26] Question: How is the company balancing investment and growth? - Management discussed the classic balance of investing in growth while achieving profitability, with confidence in continued strong performance [28][30]

Financial Data and Key Metrics Changes - The cash balance as of September 30, 2025, was $21.3 million, which is expected to be sufficient for operations through the anticipated Nifamostat PMA approval next year [17] - Cash operating expenses for Q3 2025 totaled $3.4 million, a decrease from $3.7 million in Q3 2024, primarily due to reductions in personnel and other SG&A expenses [17][18] - The revised expected cash operating expense guidance for 2025 is now in the range of $14-$15 million, down from the previous range of $16-$17 million [18] Business Line Data and Key Metrics Changes - The nephrostudy enrollment rate has shown improvement, with a focus on medical ICUs and nephrologists as principal investigators, leading to a robust enrollment from existing sites [5][10] - The study size was reduced from 166 to 70 patients to accelerate completion, with the goal of achieving 35 patients or 50% enrollment [5][10] Market Data and Key Metrics Changes - The company is positioned to become the only FDA-approved regional anticoagulant for use during continuous renal replacement therapy (CRRT) if Nifamostat is approved [8][14] - There is a clear market need for an FDA-approved regional anticoagulant due to the disadvantages of currently used products like heparin and citrate [15] Company Strategy and Development Direction - The company is focused on completing the nephrostudy and preparing for the launch of Nifamostat, with a potential FDA approval expected in late 2026 [3][31] - Recent investments have validated the Nifamostat opportunity, and the company is restructuring its clinical study approach to enhance enrollment rates [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the low clinical, regulatory, and commercial risks associated with the Nifamostat program, citing its established use in Japan and South Korea [14][15] - The anticipated completion of the nephrostudy has been pushed to the first half of 2026 due to delays in activating new clinical sites, but management remains optimistic about the quality and enrollment potential of these sites [12][18] Other Important Information - The company completed a $17 million financing round, which included a strategic investment from CorMedix, providing them with a 60-day exclusive negotiation period for a potential acquisition [3][4] - The company is also advancing a compassionate use IDE for specific patients with contraindications to currently available anticoagulants [13] Q&A Session Summary Question: Are the new target sites enrolling patients faster? - Management indicated that the new target sites are enrolling at a similar rate as before, and additional sites are needed to achieve accelerated enrollment [20][23] Question: Has federal government volatility affected clinical studies? - Management has not received feedback indicating that federal government issues have impacted the sites, although one site experienced delays due to personnel cuts [24][26] Question: What is the expected timeline for the Veterans Affairs Medical Center site? - The Veterans Affairs Medical Center site is expected to begin enrollment before the end of the year, despite earlier delays [27]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $36.2 million, an increase of $7.5 million or 26% compared to Q3 2024 [13] - Screening revenue was $32.8 million, up 29% year-over-year [13] - Net loss for Q3 2025 was $89 million, an improvement of 29% compared to Q3 2024 [14] - Non-GAAP adjusted gross profit for Q3 2025 was $20 million, an increase of $8.2 million or 69% year-over-year [14][15] - Cash and investment position at the end of the quarter was $547.1 million, with approximately $850 million including recent financing [15][16] Business Line Data and Key Metrics Changes - Galleri volumes increased by 39% and revenue by 29% in Q3 2025 [4] - Over 420,000 Galleri commercial tests have been sold since launch, with more than 16,000 healthcare providers involved [4] Market Data and Key Metrics Changes - US Galleri revenue was $32.6 million, up 28% compared to the previous year [14] - The company has introduced Galleri in Canada in partnership with MedCan, expanding its market reach [5] Company Strategy and Development Direction - The company aims to seek FDA approval for Galleri and pursue broad reimbursement [17] - Key milestones include the completion of the PMA submission to the FDA and full clinical utility results from the NHS-Galleri study expected mid-year 2026 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the timeline for FDA submission, now expected in Q1 2026 [20] - The company is focused on cost management, reducing cash burn guidance for 2025 to no more than $290 million, a significant decrease from 2024 [16] Other Important Information - A strategic collaboration with Samsung was announced to commercialize Galleri in South Korea and potentially other Asian markets [4][5] - The company completed a $325 million private placement to strengthen its balance sheet [5] Q&A Session Summary Question: What changed regarding the FDA timeline? - Management indicated increased confidence in the timeline, now set for Q1 2026 instead of the first half of 2026 [20] Question: What incentivized the recent promotion for Galleri? - The promotion reflects significant price elasticity observed, aimed at increasing demand towards year-end [21][22] Question: How will the additional capital from Samsung be used? - The additional capital provides flexibility to enhance commercial investments and fortify areas for scaling the test footprint [25][26] Question: Can you comment on the NHS England decision regarding pilot initiation? - The NHS required exceptional data to initiate a pilot, focusing on metrics like PPV, which was not compelling enough at that time [30][31] Question: What is driving the increase in volumes? - The increase in volumes is attributed to improved provider engagement and the successful integration with companies like Quest and Athenahealth [35][36]

Financial Data and Key Metrics Changes - Revenue grew 11% year over year to $254 million, driven by strong demand across physical media, collectibles, and direct-to-consumer channels [5][13] - Adjusted EBITDA increased to $12.2 million from $3.4 million a year ago, a 259% improvement, with a margin of 4.8% [5][14] - Gross margin expanded 340 basis points to 14.6%, up from 11.2% in the prior year [5][14] - Net income rose to $4.9 million, or $0.10 per diluted share, compared to $0.4 million or $0.01 per share in the prior year [14] Business Line Data and Key Metrics Changes - The Handmade by Robots brand continues to scale rapidly, contributing to the collectibles strategy [6] - The collectibles segment is seeing exceptional sell-through and expanded retail placement [5] - Direct-to-consumer sales now contribute 37% of total net revenue, highlighting the growth in this channel [17] Market Data and Key Metrics Changes - The company reported a 59% year-over-year increase in physical movie sales in the first quarter, largely attributed to the Paramount licensing agreement [23] - Vinyl sales are experiencing strong demand, driven by new releases and reissues from popular artists [44] Company Strategy and Development Direction - The company is focused on expanding its exclusive content base and creating long-term value for shareholders [7] - Strategic M&A priorities remain active, with a focus on opportunities that extend licensing relationships and enhance e-commerce capabilities [25] - The company is advancing its AI-powered sales transformation to improve efficiency and lead prioritization [6][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining strong margin performance, citing operational investments and a dedicated team [66] - The company is optimistic about the holiday season, anticipating strong consumer demand across various product categories [59] Other Important Information - The company ended the quarter with $3.2 million in cash, inventory of $121.7 million, and debt of $66 million, reflecting improved financial flexibility [9] - A new five-year, $120 million senior secured revolving credit facility was established, reducing borrowing costs and enhancing liquidity [9] Q&A Session Summary Question: Could physical media outperform this holiday season? - Management noted strong sales across entertainment categories, with collectors excited about their collections [29] Question: How did Taylor Swift's album perform compared to her last? - Management indicated that while they fulfilled a lot for the album, it was not booked in the reported quarter, but overall demand for vinyl remains strong [30][31] Question: What are the thoughts on exclusive deals with other studios? - Management is actively pursuing new opportunities with various studios to maximize physical media sales [35] Question: Will Handmade by Robots have a significant impact in the near term? - Management expects Handmade by Robots to ramp up but does not anticipate a major financial impact until fiscal 2027 or 2028 [42] Question: What factors are driving vinyl sales? - Continuous consumer demand and new releases from popular artists are contributing to strong vinyl sales [44] Question: How significant is the Paramount licensing agreement? - The Paramount agreement has been a key driver of growth, with strong sales in collectible formats like Steelbook [48]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 increased to $760,000 compared to $81,000 in the prior year, representing a significant growth [18][19] - Total operating expenses rose 64% to $4.6 million for the three months ended September 30, 2025, up from $2.8 million in the prior year [19][20] - Net loss for Q3 2025 was $4.3 million, compared to $2.7 million in the prior year [21] - Cash and cash equivalents as of September 30, 2025, were $0.9 million, down from $10.7 million as of December 31, 2024 [21] Business Line Data and Key Metrics Changes - The increase in revenue was primarily due to a $643,000 rise in service revenues from completed waste destruction service projects [19] - The company is focusing on waste destruction services as it produces stable, recurring revenues and higher EBITDA margins [8][17] Market Data and Key Metrics Changes - The waste treatment market, including PFAS destruction, is estimated to be approximately $450 billion, presenting significant growth opportunities [8] - The company is actively pursuing partnerships with TSDF operators across the U.S. to expand its waste destruction services [34][35] Company Strategy and Development Direction - The company aims to commercialize its proprietary AirSCWO technology and expand its waste destruction services business [4][5] - The strategy includes a three-pronged approach: waste destruction services, capital sale of equipment, and leasing options [17] - The company is targeting a revenue range of $6-$8 million for 2026, which represents a 50%-100% increase over expected 2024 revenues [15][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth potential and the demand for its services, particularly in the PFAS destruction market [8][30] - The company is focused on improving throughput and operational efficiency to enhance profitability [27][28] Other Important Information - The company raised approximately $7 million from its ATM facility, extending its cash runway into Q2 2026 [14] - A special meeting of shareholders is scheduled for December 15, 2025, to discuss a proposed reverse stock split to maintain NASDAQ listing compliance [24][25] Q&A Session Summary Question: How is the pipeline in the TSDF segment? - Management indicated that discussions are ongoing with several TSDF operators in the U.S. to deploy AirSCWO units, with Crystal Clean being the first partnership [34][35] Question: What is the timeline for the North Carolina contract's second phase? - The first phase involves processing 1,000 gallons of AFFF, with the second phase potentially treating an additional 28,000 gallons, pending successful completion of the first phase [37] Question: How do you see the mix of business between waste services and capital sales in 2026? - The mix will include both waste destruction services and capital sales, with a focus on higher-margin service business [38][41]

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][11] - Gross profit for Q3 2025 increased by 8% to $8 million compared to $7 million in Q2 2025, with gross margin rising to 32% from 30% in the previous quarter [13][14] - Net loss per share decreased by 1 cent to 7 cents in Q3 from 8 cents in Q2, while adjusted EBITDA loss per share remained stable at 2 cents [14] Business Line Data and Key Metrics Changes - The company anticipates deploying over 50,000 products into homes and units by the end of Q4 2025, with a focus on retail and professional segments [6][30] - Significant collaborations include supplying technologies to a 278-apartment project in Austin, Texas, and a $3 billion mixed-use urban smart home city project in Miami, with expectations of supplying over 500,000 units [5][6] Market Data and Key Metrics Changes - The company has signed an agreement with Global Venture Group to deploy smart home technologies in Middle Eastern projects, including Saudi Arabia and Egypt, expecting to supply hundreds of thousands of units [4][5] - The company is experiencing growth in deferred revenue, indicating an acceleration of revenues primarily from its e-commerce platform [12] 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][16] - The introduction of AI-driven software for its e-commerce platform is expected to increase conversion rates and sales by 30%, enhancing the overall customer experience [8][36] 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 [16][20] - The company is making progress towards mandatory safety standardization for its products, which is expected to enhance market acceptance and safety [18][60] Other Important Information - The company raised $5 million in additional capital from leading shareholders, reflecting confidence in its strategy and development [9][11] - The upcoming launch of a patented advanced smart turbo heater fan and various plug-and-play ceiling fans is anticipated to contribute significantly to cash flow [7][27] Q&A Session Summary Question: 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 [30][31] Question: Software upgrade 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 [36][38] Question: Current shipping status of projects - The Marriott demo has opened doors for more business, while projects in Austin and Florida are starting to supply soon, with larger projects expected to begin in 2026 [42][64] Question: Middle East opportunities - The company sees significant growth potential in the Middle East, particularly in advanced technology adoption for commercial and residential developments [67] Question: Turbo heater fan sales channels - The turbo heater fan is expected to be sold through the company's websites and potentially through Home Depot, with further announcements to come [70]

Financial Data and Key Metrics Changes - Revenue reached a historical record of $127.3 million in Q3 2025, representing a 12.1% organic revenue growth at constant currencies year over year and a 13.4% year-over-year increase in reported revenue [5][22] - Adjusted EBITDA margin was 18.5%, showing a healthy profitability, while adjusted profit margin was 8.9% [5][25] - Adjusted net profit reached $11.3 million, marking a 10.6% increase compared to the same period in 2024 [25][26] Business Line Data and Key Metrics Changes - Revenue from Latin America experienced a remarkable 35% year-over-year growth, while North America saw a 6% increase [22][23] - Financial services and retail and industrial goods sectors grew by 51% and 11% year-over-year, respectively [23] Market Data and Key Metrics Changes - The company reported strong performance in both Latin America and North America, with Latin America showing a 35% year-over-year growth and North America a 6% increase [22][41] - New Markets, which include Europe and Asia-Pacific, recorded sequential growth in Q3 2025 [22] Company Strategy and Development Direction - The company is focusing on a disciplined land and expand approach, resulting in a predictable revenue base characterized by exceptional logo retention and long client tenure [23] - CI&T is actively experimenting with new engagement models such as fixed price and output-based contracts to align compensation with successful outcomes [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong commercial pipeline and sales conversion, attributing it to the differentiation based on the AI strategy and CI&T Flow [35][41] - The company anticipates continued growth driven by foundational spending on legacy technology upgrades and direct AI investments [41][42] Other Important Information - CI&T has achieved an impressive 85% adoption rate of AI tools across the organization, significantly fueling the growth of CI&T Flow [18] - The company is actively executing a share repurchase program to enhance shareholder value [26] Q&A Session Summary Question: Scalability of new engagement models - Management sees a gradual transition from time-material-based pricing to value-based pricing models, with a midterm opportunity for scalability [30][31] Question: Guidance for Q4 and growth sustainability - The outlook for Q4 is based on consistent performance and a solid commercial pipeline, with strong sales conversion compared to last year [35] Question: Gross margin trends - Management is confident in delivering the full-year guidance of 18%-20% adjusted EBITDA margin, with ongoing efficiency gains and cost discipline [38][39] Question: Demand trends and tariff-related volatility - Latin America is showing strong growth driven by AI adoption, while North America is also gaining traction [41] Question: Client pipeline and competitive environment - Financial services and retail sectors are expanding, with a mix of pricing models being offered to clients [46][49] Question: Top client revenue and diversification - The top client is growing, but the company is diversifying its client portfolio, with a focus on maintaining high levels of recurring revenue [60][62]