Financial Data and Key Metrics Changes - CorMedix reported record revenue of $104.3 million for Q3 2025, a year-over-year increase of $77.5 million, driven by strong performance from DefenCath and contributions from Melinta [6][18] - Net income for the quarter was $108.6 million, or $1.26 per diluted share, compared to a net loss of $2.8 million in Q3 2024 [20][21] - Adjusted EBITDA for Q3 2025 was $71.8 million, a significant improvement from a loss of $2 million in the same quarter last year [22] Business Line Data and Key Metrics Changes - DefenCath sales reached $88.8 million, contributing significantly to the overall revenue growth [18] - The Melinta portfolio contributed approximately $15.5 million in revenue for September 2025, with $12.8 million from Melinta portfolio sales [19] Market Data and Key Metrics Changes - The company raised its pro forma combined full-year revenue guidance from a minimum of $375 million to a range of $390-$410 million [6] - Pro forma fully synergized adjusted EBITDA guidance for 2025 was increased from $165-$185 million to a new range of $220-$240 million [7] Company Strategy and Development Direction - The acquisition of Melinta Therapeutics is seen as transformational, creating a diversified specialty pharmaceutical company with a broad portfolio [5] - The company is focusing on integrating operations and capturing approximately $30 million of projected synergies by the end of 2025 [5][20] - CorMedix is planning to expand DefenCath into new indications, including the prevention of CLABSI for patients receiving total parenteral nutrition [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future profitability, supported by a substantial tax benefit of $59.7 million realized in Q3 2025 [21] - The company anticipates significant cash generation in Q4 2025, projecting to end the year with approximately $100 million in cash and cash equivalents [24] - Management highlighted the importance of upcoming catalysts, including top-line data for Rezeo in Q2 2026 and the expansion of DefenCath [10][11] Other Important Information - The integration of Melinta's operations is progressing faster than expected, with all functional areas fully integrated from a personnel standpoint [16] - The company is actively engaging with Medicare Advantage payers to expand the utilization of DefenCath [32] Q&A Session Summary Question: Inventory stocking versus utilization for DefenCath in Q3 - Management indicated that smaller customers are holding an average of two to three weeks of inventory, while larger customers are at three to four weeks [28] Question: Guidance for next year and potential seasonality - Management noted that there is no historic seasonality for the DefenCath business, and they are still assessing the full-year outlook for 2026 [30] Question: Real-world evidence and pricing negotiations for TDAPA - Management clarified that real-world evidence will be most applicable for Medicare Advantage, which has flexibility in contracting [33] Question: Update on DefenCath utilization and patient demographics - Management reported that utilization is higher than the initial target of 6,000 patients, primarily among fee-for-service patients [39] Question: Pricing dynamics post-TDAPA - Management acknowledged expected price compression post-TDAPA and is awaiting final determinations from CMS [45] Question: Insights on Melinta transaction and its value - Management emphasized the stabilizing revenue from Melinta and the potential of Rezeo as a significant growth driver [63]

Financial Data and Key Metrics Changes - Third-quarter revenue reached $26 million, exceeding the guidance range of $18-$24 million, marking a 30% increase from the previous quarter and a 157% increase year-over-year [23][24] - Adjusted EBITDA loss was $4 million, representing the best adjusted EBITDA loss since Q3 2020, and a significant improvement from losses of $10.4 million in the prior quarter and $12.2 million in the year-ago quarter [26] - GAAP net loss was $23.9 million, or $1.61 per diluted share, compared to a loss of $15.4 million, or $1.18 per diluted share in the prior quarter [25] Business Line Data and Key Metrics Changes - The company reported a return to positive non-GAAP gross profit of $2 million, or 7.7% of revenue, for the first time since late 2023, driven by higher revenue at a better margin [24] - The Alpha Steel facility, now fully owned by the company, is expected to be accretive to adjusted EBITDA and improve gross margins [27][50] Market Data and Key Metrics Changes - The company has expanded its pipeline in the U.S., its largest market, with new and renewed discussions with multiple industry leaders, including tier-one EPCs [17] - Internationally, the company is making progress in markets like Australia, where its solutions have proven to be cost-effective due to labor constraints [32] Company Strategy and Development Direction - The company aims to position itself as a leading single-axis tracker provider, focusing on product innovation and enhancing customer service [4][6] - The introduction of new products, such as a washerless tracker and solutions for high wind zones, is part of the company's strategy to meet diverse customer needs [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, expecting to be adjusted EBITDA positive for the full year in 2026 [35] - The company is focused on executing its strategy and leveraging its strong balance sheet to drive future growth [26][27] Other Important Information - The company has secured a 1-gigawatt agreement with Livona Renewables, indicating strong demand for its products [16] - The acquisition of Alpha Steel is expected to drive lower COGS and improve gross margins, enhancing the company's domestic content capabilities [27][50] Q&A Session Summary Question: Can you provide more details about the Livona booking and international bookings? - Management indicated that Livona represents a strong client with a track record, and they are optimistic about international markets, including a recent project in Australia [31][32] Question: What are the expectations for margins and revenues in early 2026? - Management expects to be adjusted EBITDA positive for the full year in 2026, with optimism about margins and revenues [35][36] Question: How does the recent financing impact cash management? - Management noted that the financing facility is beneficial for customer confidence and ongoing commercial efforts, but they are focused on execution rather than immediate drawdowns [41] Question: What is the impact of tariffs on the business? - Management stated that tariffs create pressure on project-level CapEx but have not disclosed specific tariff numbers, emphasizing the importance of flexibility in negotiations [51] Question: How does the company differentiate itself in challenging terrains? - Management highlighted that their tracker system has lower top-of-pile loads, making it suitable for various foundation solutions, and emphasized the importance of labor efficiency [54]

Financial Data and Key Metrics Changes - The company reported revenues of $17.3 million for Q3 2025, exceeding the guidance range of $15.1-$15.6 million, marking the sixth consecutive quarter of growth [6][17] - GAAP gross margin for Q3 2025 was 63%, better than the guidance of 58%-60% [18] - Adjusted EBITDA loss for Q3 2025 was $4.3 million, which was better than the guidance range of a loss between $7.4 million and $6.8 million [20] - The company expects Q4 2025 revenues to be in the range of $18.2-$18.9 million, indicating a seventh consecutive quarter of growth [22] Business Line Data and Key Metrics Changes - The cross-industry business unit (CIB) accounted for $13.2 million, approximately 75% of total revenues, while automotive contributed $4.1 million, approximately 25% [17] - CIB revenues increased from $12.8 million in Q2 2025, while automotive revenues decreased slightly from $4.3 million in Q2 2025 [17] - Gross margin for CIB was 69.1%, while automotive gross margin was 43.2% in Q3 2025 [18] Market Data and Key Metrics Changes - The company noted a growing adoption of Matrix solutions in the POEV market, which are being used in command and control centers, museums, and live events [7] - The medical segment is seeing significant interest with three OEMs launching VA7000-based endoscopies, including the first disposable colonoscopy with 4K video resolution [10][12] Company Strategy and Development Direction - The company is focused on high-end products in the POEV market, with the VS3000 chipset being a key driver for growth [6][7] - Valens Semiconductor aims to secure additional design wins in the medical segment and ramp into mass production starting in 2027-2028 [12] - The automotive strategy is centered around the VA7000 chipset, which complies with the MIPI A-PHY standard for high-speed sensor connectivity [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, supported by cutting-edge technology and a robust balance sheet [24] - The influence of tariffs has become milder, leading to increased customer orders [29] - Management highlighted the importance of MIPI A-PHY in addressing the growing demand for higher bandwidth and resolution in various industries [34] Other Important Information - The company ended Q3 2025 with cash and cash equivalents totaling $93.5 million and no debt [21] - The company allocated $3.6 million for a share repurchase program during Q3 2025 [21] Q&A Session Summary Question: About the gross margin drop in automotive - Management indicated that the drop was a one-time event related to product mix and manufacturing line transitions, expecting improvement in the next quarter [26][27] Question: Strength in cross-industry business and tariff impact - Management noted that the tariff influence has become milder, allowing companies to place new orders more confidently [28][29] Question: Pro AV upside and sustainability - Management explained that Pro AV growth is driven by matrices, conference rooms, and projectors, with a notable increase in conference room cameras [32][33] Question: Factors pacing MIPI A-PHY adoption - Management emphasized that MIPI A-PHY offers significant advantages in environments with strong electromagnetic interference, which is crucial for various applications [34]

Financial Data and Key Metrics Changes - Global revenue for Q3 2025 was $102.1 million, down from $107.6 million in the prior year quarter, representing a decrease of 5.7% on a constant currency basis due to lower volumes and economic headwinds [8][9] - Gross margin decreased to 17.3% from 19.9% in the prior year quarter, primarily due to lower volumes and production [9] - Adjusted EBITDA for Q3 was a loss of $7.9 million compared to a loss of $4.1 million in the prior year quarter [10] - Adjusted diluted net loss per share was $0.40 on 34.6 million shares, compared to $0.24 on 35 million shares in the prior year quarter [10] Business Line Data and Key Metrics Changes - The porcelain business is highlighted as a growth factor, with the acquisition of the remaining shares of Laioli to strengthen market position [6] - The U.S. market saw a sales decline of 10.9% to $46.7 million, while Canada experienced a similar decline of 10.8% [8] - Australia reported an 8.5% increase in sales, marking the first year-over-year growth since the silica ban [8] - EMEA sales increased by 12.4%, driven by growth in both indirect distributor channels and direct business [9] Market Data and Key Metrics Changes - Approximately 48% of revenues in the first nine months of 2025 were generated in the U.S. market [12] - The company is monitoring the impact of existing and proposed U.S. tariffs on imported products, which could affect revenue [12][13] Company Strategy and Development Direction - The company is transforming its business model to focus on innovation, product development, and marketing while optimizing production through global partners [4][5] - The closure of the Bar-Lev manufacturing facility is expected to generate annualized cash savings of approximately $22 million, contributing to total savings exceeding $85 million since 2023 [5][11] - The strategic shift aims to enhance competitiveness, profitability, and cash flow while building a company focused on customer value creation [5][6] Management's Comments on Operating Environment and Future Outlook - Management noted stabilizing revenue trends in recent quarters and expressed optimism about reaching positive adjusted EBITDA by Q3 2026 [16] - The company is encouraged by legislative developments in the U.S. that may restore fairness in the stone product supply chain [15][16] Other Important Information - The company is facing 514 lawsuits related to silica injuries, with a provision of $46 million recorded for probable losses [13][14] - Discussions are ongoing regarding the potential sale of the Richmond Hill site at book value [11] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded with management reiterating their focus on executing the transformation plan for sustainable growth [17][18]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached $45.6 million, up 25% year over year, with first-party sales representing 52% of total revenue [7][16] - Adjusted EBITDA loss improved to $14 million compared to $17 million in the same quarter last year, reflecting operating leverage and cost discipline [9][20] - Loss before income tax was $17.7 million, a 1% decrease year over year [9][20] Business Line Data and Key Metrics Changes - Physical goods GMV grew by 26% year over year, and by 37% when excluding corporate sales [6][7] - Adjusted for perimeter effects, physical goods orders grew 34% year over year, driven by strong consumer demand and improved product offerings [5][6] - Marketing and advertising revenue totaled $1.3 million, down 24% year over year, reflecting lower spending from large sellers [17][55] Market Data and Key Metrics Changes - Nigeria saw physical goods orders up 30% year over year, with GMV up 43% [11] - Kenya experienced physical goods orders up 56% year over year, driven by up-country expansion [11] - Ghana delivered outstanding performance with physical goods orders up 94% year over year and GMV increasing 157% [14] Company Strategy and Development Direction - The company aims to achieve full-year profitability by 2027, focusing on profitable growth through efficiency and strategic investments [5][23] - Continued emphasis on up-country expansion to unlock opportunities beyond major urban centers [10][52] - The company is phasing out non-core digital transactions to streamline operations and enhance efficiency [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, citing strong customer demand and operational improvements [8][23] - The competitive environment remains stable, with some global entrants pulling back, allowing the company to gain local market share [15][39] - Management highlighted the importance of adapting to local market conditions to maintain a competitive edge [39][40] Other Important Information - The average order value for physical goods in Q3 2025 was $35, down from $38 in Q3 2024, mainly due to reduced corporate sales in Egypt [7][18] - The total headcount declined by 7% to just over 2,010 employees, reflecting a leaner organization [9][21] - The company launched Jumia Instant, offering four-hour delivery in Nairobi, to compete with quick delivery platforms [12][42] Q&A Session Summary Question: Guidance for PBT and cost management - Management expects significant acceleration in usage in Q4 due to strong seasonality, which will translate into revenue and monetization [26][27] - Fulfillment cost per order is expected to remain at the new baseline of $1.86, reflecting improved efficiency [28] Question: Working capital movements for Q4 - Management indicated that they do not expect significant changes in working capital dynamics for Q4, as they can ramp up inventory faster [30][31] Question: October order and GMV growth - Management confirmed that the above 30% growth in October is indicative of continued momentum, but they remain cautious about expectations for the full quarter [32][33] Question: Supply access in Q4 - Management noted that currency stability is positively impacting supply, with increased willingness from local and international sellers to commit inventory to Africa [35][36] Question: Competitive environment - Management observed reduced marketing investment from international platforms, indicating challenges for them in operating at scale in Africa [37][38] Question: Advertising monetization opportunities - Management sees significant upside potential in advertising revenue, aiming to reach around 2% of GMV in the mid to long term [55][56]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $12 million, down from $13.3 million in the prior year [18] - Product revenues decreased to $10.7 million from $10.9 million in Q3 2024, primarily due to a decline in revenues from pilot helmets and training products [19] - Net income for Q3 2025 was $4.1 million, compared to a net loss of $3.5 million in Q3 2024, with the current net income including a $5.1 million add-back for reduction in litigation accruals [21] Business Line Data and Key Metrics Changes - Funded research and development revenues decreased to $1.2 million from $2.3 million in Q3 2024, attributed to project completion timing and a shift to production focus [19] - Cost of product revenue was $8.4 million, or 79% of net product revenues, compared to $8.3 million, or 76% of net product revenues, in the previous year [19] - R&D expenses for Q3 2025 were $2.5 million, a slight decrease from the same quarter last year [20] Market Data and Key Metrics Changes - The U.S. Army aims to purchase at least 1 million drones in the next two to three years, significantly increasing from approximately 50,000 annually today [8] - The first-person drone market is projected to grow from under $300 million last year to as much as $1.2 billion by 2030, representing a compound annual growth rate of around 31% [8] Company Strategy and Development Direction - The company has entered strategic partnerships with organizations like Ondas Holdings and Theon International, enhancing its position in the defense sector [5] - Kopin is focusing on defense applications, particularly in night vision and thermal imaging technologies, to capitalize on increased defense budgets and modernization efforts globally [6] - The company aims to leverage its unique microdisplay technologies to capture more orders in rapidly growing defense industries [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue and profitability goals for 2027 and 2028, supported by a strong opportunity pipeline exceeding $1 billion [12] - The geopolitical landscape is expected to sustain defense spending, with increasing demand for advanced vision technologies [12] - Management highlighted a transformation within the company, emphasizing improved quality, customer relationships, and a solid capital structure [15] Other Important Information - The company ended Q3 with $26.5 million in cash, bolstered by a $41 million raise from strategic investors post-quarter [22] - The company has successfully addressed quality issues in manufacturing, achieving some of the highest quality scores in its history [15] Q&A Session Summary Question: Any developments on neural display? - The company demonstrated a bidirectional microdisplay that allows drone control using eye movement, indicating a commitment to invest in this technology [25] Question: How should quarterly OpEx be viewed moving forward? - The company expects OpEx to remain consistent with current levels, with plans to grow into any headwinds [26] Question: Can you size the near-term opportunities in the pipeline? - The company has approximately 80% of the backlog needed to meet its 2026 plan, with strong visibility on major programs until 2030 [27] Question: Update on the aviation heads-up display issue? - The decrease in military revenues was attributed to a timing issue rather than a fundamental problem [32] Question: Clarification on the U.S. Army SBMC program and revenue expectations? - About 40% of the current opportunity pipeline is related to the Soldier-Borne Mission Command program, with expectations for production revenue starting in 2027 [40]

Financial Data and Key Metrics Changes - For Q1 fiscal 2026, total revenue was $59 million, an increase of 28% or $12.9 million compared to the prior year, primarily driven by increased revenue from company-owned salons and a same-store sales increase of 0.9% [10][11] - Adjusted EBITDA for the first quarter was $8 million, up from $7.6 million a year ago, reflecting a 4.3% improvement [14] - Operating income increased by 177%, reaching $5.9 million compared to $2.1 million in the year-ago quarter [10][12] - The company generated $2.3 million in positive operating cash flow, a $3.6 million improvement versus last year's first quarter [4][16] Business Line Data and Key Metrics Changes - Same-store sales for Supercuts increased by 2.5% in Q1, with loyalty program participation growing from 36% to 40% [4][5] - Adjusted EBITDA for the franchise segment was $6.4 million, a decrease of $1.6 million compared to the prior year, primarily due to lower royalties and fees [15] - Adjusted EBITDA for the company-owned salon segment improved by $1.9 million year-over-year to $1.6 million, driven by an increased number of company-owned salons [15] Market Data and Key Metrics Changes - The company experienced a net decrease of 757 franchise locations compared to the previous year, with approximately 300 of these related to the Align salons that converted from franchise to company-owned [11] - The performance gap between closed stores and top-performing units was approximately $350,000, indicating strong potential within the system [11] Company Strategy and Development Direction - The company is focused on the holistic transformation of the Supercuts brand and optimizing sales and profitability in its company-owned salon portfolio [3][4] - Key initiatives include enhancing operational performance, reinforcing brand leadership, and driving technology and digital acceleration across the business [7][8] - The company plans to pilot new digital interactions on its website and app to improve guest experience [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress made in improving profitability and generating positive cash flow, indicating a solid start to fiscal 2026 [8][21] - The company anticipates a meaningful increase in unrestricted cash generated from core operations compared to fiscal year 2025, supported by operational strength and a full year of acquired company-owned salon results [17][18] Other Important Information - The company has $25.5 million of available liquidity, including $16.6 million in unrestricted cash and cash equivalents [19] - The board is evaluating prospects for a permanent CEO, with a decision expected in the coming months [40] Q&A Session Summary Question: Can you provide more details about pricing actions and their impact on traffic? - Management indicated that franchisees have begun to take pricing actions based on a competitive pricing survey, with no significant changes in traffic trends observed across the country [22][23] Question: Can you talk about traffic trends at Supercuts and Smart Style? - Management noted improvements in traffic at Supercuts, while acknowledging opportunities for growth in the Smart Style brand [25] Question: Regarding store closures, should we expect a reduction in closures this year? - Management confirmed that closures are expected to be reduced by half compared to previous years, with 54 locations closed in Q1 [30] Question: Can you provide insight into G&A for this year? - Management expects G&A to be in the range of $40 million to $43 million, including G&A associated with the Align transaction [35] Question: What is the status of the CEO search? - Management is currently in an interim role, with the board evaluating prospects and a decision expected in the coming months [40]

Financial Data and Key Metrics Changes - As of September 30, 2025, the company reported cash, cash equivalents, restricted cash, and short-term investments totaling $207.5 million, providing significant financial flexibility for operations over the next two years [13][14] - Research and development (R&D) spending for Q3 2025 was $4.2 million, a decrease from $8.9 million in Q3 2024, primarily due to costs capitalized into inventory [14] - Selling, general and administrative (SG&A) expenses increased to $19.3 million in Q3 2025 from $6.4 million in Q3 2024, reflecting the reclassification of R&D expenses and increased costs associated with the commercial launch [15] - The net loss for Q3 2025 was $5.2 million, or negative $0.10 per share, compared to a net loss of $30.3 million, or negative $0.63 per share, in Q3 2024 [15] Business Line Data and Key Metrics Changes - The company is focused on the commercial launch of ZEVASKYN, the first autologous cell-based gene therapy for recessive dystrophic epidermolysis bullosa (RDEB), with growing patient demand and an expanding network of qualified treatment centers (QTCs) [4][10] - The number of identified eligible patients at QTCs has more than doubled to approximately 30, up from over 12 previously reported [10] - The activation of Children's Hospital Colorado as a QTC brings the total to three, alongside Lurie Children's Hospital of Chicago and Lucille Packard Children's Hospital Stanford [11] Market Data and Key Metrics Changes - ZEVASKYN has received coverage decisions from all major commercial payers, covering over 80% of commercially insured lives, and has baseline coverage across all 51 state Medicaid programs effective October 1, 2025 [12] - A permanent product J-code for ZEVASKYN will be established by CMS effective January 1, 2026, simplifying claims and reimbursement processing [12] Company Strategy and Development Direction - The company aims to achieve its 2026 launch goals for ZEVASKYN despite a temporary delay in the first patient treatment, focusing on expanding treatment center networks and ensuring market access [4][5] - The company is also advancing its pipeline, with a gene therapy program for X-linked retinoschisis selected for the FDA Rare Disease Endpoint Advancement pilot program [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to meet 2026 launch goals based on trends in patient demand and treatment center expansion, despite the delay in the first patient treatment [4][5] - The management team highlighted the importance of maintaining high-quality standards in manufacturing and the proactive measures taken to optimize release assays [6][7] Other Important Information - The company has strengthened its management team with the appointment of Dr. James A. Gao as Senior Vice President, Head of Clinical Development and Medical Affairs, bringing over 20 years of industry experience [17] Q&A Session Summary Question: Expected timeline for patients to receive treatment after ZEVASKYN Product Order Forms - Management indicated that many patients have already received prior authorizations and are scheduled for biopsies in November and early 2026, with treatment expected to follow if all paperwork is completed [20][22] Question: Impact of treatment delays on profitability timeline - Management stated that the timeline for achieving profitability remains unchanged, with expectations for profitability in the first half of 2026 [26][28] Question: Routine maintenance shutdown of the plant - Management confirmed a mandated FDA-required shutdown for general maintenance from mid-December to early January [29][30] Question: Status of biopsies collected before optimization pause - Management clarified that no biopsies were collected during the pause to ensure patient safety and product quality [31] Question: Lead time for ZEVASKYN Product Order Forms - Management expects the lead time to decrease as more patients progress through the treatment process, currently estimated at about three months [34] Question: Attrition rate among patients with ZEVASKYN Product Order Forms - Management expressed confidence in a high conversion rate for patients with ZPOFs, as these are motivated patients eager to proceed with treatment [40][41] Question: Prior authorization process for RDEB patients - Management described the prior authorization process as involving clinical and financial discussions, with most payers following inclusion/exclusion criteria from clinical trials [44][46]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $21.1 million, a decrease of 16% from $25.2 million in Q3 2024 [21] - Net income for Q3 2025 was $9.3 million, compared to $3.4 million in the same period of 2024 [23] - Gross profit was $11.3 million in Q3 2025, down from $12.2 million in Q3 2024, but gross margins improved to 53.6% from 48.4% [22] - Adjusted EBITDA was $1.4 million in Q3 2025, down from $4.4 million in Q3 2024 [23] Business Line Data and Key Metrics Changes - Glaucoma Life business line saw average monthly active terminals (MAT) reach 3,903, an increase of 408.2% year over year [9] - Glaucoma IoT recorded a year-over-year increase of 583% in average daily active terminals [12] - Glaucoma SIM surpassed 400,000 cumulative cars sold, with a 269.5% year-over-year increase in average MAT [13] - Average monthly active users (MAUs) for Glaucoma IoT, Glaucoma Sync, and Glaucoma Life increased by 593.3%, 188.2%, and 382.3% respectively [20] Market Data and Key Metrics Changes - Revenue from Japan contributed 33.2%, Mainland China 35.1%, North America 15.4%, and other regions 16.3% in Q3 2025 [22] - The company reported a significant increase in revenue from Mainland China, driven by the recovery of Chinese outbound travelers [34][36] Company Strategy and Development Direction - The company is focused on overcoming digital divides through innovative connectivity solutions and strategic investments in R&D and marketing [7] - Plans to develop pet tech as a standalone application and expand distribution channels in North America and Europe [11] - The launch of new products like the Miracle G40 Pro and Miracle G50 MAX is expected to drive future growth [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent macroeconomic challenges and global trade headwinds impacting revenue guidance for 2025 [17] - The company expects total revenues for 2025 to be between $81.3 million and $85.8 million, reflecting a potential decrease of 15.4% to an increase of 1.9% compared to 2024 [17] - Management expressed confidence in the ability to scale user base and expand global partnerships despite external challenges [16] Other Important Information - The company maintained a solid balance sheet with cash and cash equivalents of $28.5 million as of September 30, 2025 [24] - The average daily data usage per terminal was reported at 1.57 gigabytes in September 2025 [19] Q&A Session Summary Question: Sources of $9 million in other income - The $9 million gain was primarily from the fair values of other investments [26] Question: Reasons for decline in product sales - Product sales decreased by $4 million, attributed to low-margin products and delays in orders from Japanese customers [27][28] Question: Drivers behind increased revenue from Mainland China - Growth driven by Chinese outbound travelers and the company's strong 5G offerings [34][36] Question: Impact of trade tensions on the market - Management believes trade tensions have limited impact, with expectations for recovery in sales as new products launch [41][44]

Financial Data and Key Metrics Changes - The company's GMV for Q3 was $37.8 billion, reflecting a 9% year-over-year increase, while the first nine months GMV was $108.4 billion, up 7% year-over-year [12] - Record Q3 revenue reached $81.9 million, a 4% increase year-over-year, with year-to-date revenue of $245.3 million, up 5% year-over-year [12] - Non-GAAP gross profit for Q3 was $41.5 million, a 5% year-over-year increase, translating to a non-GAAP gross profit margin of approximately 51%, an improvement of 1% from the prior year [16] - Adjusted EBITDA for Q3 was $5.6 million, representing a margin of approximately 7%, with expectations for a significant increase to around 15% in Q4 [18][20] Business Line Data and Key Metrics Changes - The tickets and travel category grew 6% in Q3, driven by new business wins, while the fashion and luxury category saw a 13% increase [12][13] - The money transfer and payments category achieved approximately 100% year-over-year growth in Q3, primarily driven by new business activity [14] - The home category contracted by approximately 70% year-over-year, but growth is expected to return in Q4 [15] Market Data and Key Metrics Changes - In the U.S., revenue declined 12% year-over-year, mainly due to the contraction in the home category, while APAC grew approximately 55% year-over-year [15] - Other Americas (Canada and Latin America) grew approximately 18% year-over-year, with EMEA growing approximately 19% year-over-year, supported by strong performance in key verticals [15][16] Company Strategy and Development Direction - The company is focused on enhancing machine learning capabilities, with 70% of models shifted to autonomous training, which is expected to improve scalability and performance [6][10] - The company is positioning itself to navigate the rise of agentic commerce through strategic partnerships and innovative technology [10] - The company plans to continue investing in product development while managing expenses effectively to maintain operating leverage [45][47] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for a healthy holiday season, supported by resilient consumer spending and strong performance in key categories [11] - The company raised the bottom end of its revenue guidance for the second consecutive quarter, now anticipating revenue between $338 million and $346 million for the full year [20] - Management highlighted the importance of adapting to new complexities introduced by agentic commerce, which could drive demand for their services [58] Other Important Information - The company ended Q3 with $325 million in cash and investments, maintaining a zero-debt position [19] - The company repurchased 5.2 million shares for approximately $25.3 million in Q3, continuing its commitment to managing dilution [19] Q&A Session Summary Question: How does the company view growth outlook related to existing merchants versus new business? - Management expects strong performance on both upsell and new client acquisition fronts, consistent with prior years [23] Question: Are there emerging verticals to watch for 2026? - The company is focused on specific large verticals and geographic regions for expansion, considering both product fit and distribution strategies [25] Question: What is the revenue contribution from non-Chargeback Guarantee products for 2025? - Non-Chargeback Guarantee products have shown strong growth, over 100%, aiding in securing longer-term contracts and winning new business [27] Question: How does the company view the long-term margin profile with machine learning investments? - The long-term margin profile varies based on product mix, with a focus on increasing gross profit dollars [29] Question: What are the expectations for gross margins into next year? - Management anticipates improved performance from model enhancements, but also acknowledges potential headwinds from new categories [33] Question: How does the company view the impact of stablecoin adoption on fraud management? - The company sees stablecoins introducing complexity for merchants, which could drive demand for their services [39] Question: What are the opportunities and threats related to agentic commerce? - Agentic commerce presents opportunities due to increased complexity for merchants, but could also pose threats if transactions shift away from traditional e-commerce [58]