Financial Data and Key Metrics Changes - Group normalized revenue increased by 3% to AUD 541.6 million, with a notable 8% growth in the second half compared to the first half [4][13] - Normalized net profit after tax (NPATA) was AUD 103.2 million, down 4.1% year-on-year, while statutory net profit after tax rose by 6.4% to AUD 95.8 million [14][26] - The cost-to-income ratio improved by 230 basis points in the second half compared to the first half, with a full-year ratio of approximately 58.7% [5][42] Business Line Data and Key Metrics Changes - Group Remuneration Services (GRS) revenue was slightly up at AUD 293.4 million, with novated lease sales growing by 4.1% [16] - Asset Management Services (AMS) revenue increased by 4.3% to AUD 185.5 million, with written down value rising by 6.4% [21] - Participant numbers in the PSS segment grew by 10.5%, with revenue up 11.5% to AUD 56.5 million [22] Market Data and Key Metrics Changes - The EV percentage of new novated sales peaked at 56% in Q3 before stabilizing around 45% in Q4 [17] - The number of employees in the SME and corporate segments increased by 15.8%, contributing to 29% of total novated sales in FY 2025 [19] - NDIS participant growth was strong at 11.8%, with the government focusing on managing cost growth [24] Company Strategy and Development Direction - The company aims to be a trusted partner providing simple solutions across its segments, focusing on customer experience, technology enablement, and process simplification [7][10] - Key investment areas include digital and service excellence, data-driven insights, AI and automation, process simplification, and expanding the partner ecosystem [9][10] - The company is committed to sustainability, supporting the transition to a low carbon economy through initiatives like the On the Go EV charge card [14][15] Management's Comments on Operating Environment and Future Outlook - The company enters FY 2026 with strong business momentum and expects stable auto supply and used car values [33] - Cash rates are anticipated to decrease as inflation moderates, which should support customer confidence [34] - The company expects continued growth from new client wins and buoyant novated orders, alongside benefits from strategic investments [34] Other Important Information - The company invested AUD 20.8 million in growth and productivity, with AUD 6.1 million classified as nonrecurring costs [13][26] - The company maintained a strong balance sheet with no debt maturities due in the next twelve months, following a successful AUD 300 million private placement [31] Q&A Session Summary Question: Can you unpack the drivers for the improvement in novated yield? - The improvement was largely due to a higher proportion of plug-in hybrids at higher price points and a larger proportion of new vehicles being financed [37] Question: Is the 4.7% of novated leases in Olli incremental business? - Most of the new customers acquired through Olli are in employee brackets of 20 to 200, which was not previously targeted [40] Question: What should be expected for the cost-to-income ratio in FY 2026? - A fair assessment for FY 2026 would be around the 57% mark, with expectations for further benefits from productivity investments [42][44] Question: Will onboard finance be a positive contributor to NPATA for FY 2026? - It is expected to be neutral for FY 2026 but positive thereafter [45][46] Question: How will the removal of setup fees impact margins in PSS? - There will be a downward movement in margins in 2026 due to the removal of setup fees, but automation investments are expected to improve margins over time [52] Question: What is the outlook for GRS contract renewals? - Approximately 10% of the portfolio is up for renewal in the next eighteen months, with a strong pipeline for new opportunities [83]

Financial Data and Key Metrics Changes - The company reported a significant improvement in normalized earnings before tax, which increased by 61% year on year, with the strongest quarterly result in two years in Q4 FY 'twenty five [5][19] - Net loss after tax reduced by $32.5 million to $15.6 million, showing consistent improvement throughout the year [17] - Operating cash flow increased by 35% to $25.3 million, with adjusted net operating cash flow of $300,000 [21] Business Line Data and Key Metrics Changes - The freight and fuel business experienced a turnaround, with normalized earnings loss improving by 90% year on year, moving to a positive result in Q4 FY 'twenty five [11] - Warehousing faced ongoing challenges, with aggressive pricing tactics leading to reduced storage costs below pre-COVID levels [12][13] - The specialist business performed well, particularly in infrastructure projects, with a healthy pipeline for the next two years [14] Market Data and Key Metrics Changes - The company retained revenue despite low demand in a highly competitive market, with ongoing economic headwinds affecting business and consumer confidence [8][10] - The interisland ferry service disruption and extreme weather events further impacted market activity [9] Company Strategy and Development Direction - The company is transitioning from cost reduction to value creation as part of its Accelerate transformation program, which has one year remaining [6][25] - The focus is on building value in the freight business, improving warehousing performance, and enhancing customer service [23][24] - The company aims to become the preferred logistics provider in New Zealand, supported by a strong national network and partnerships [22] Management Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the timing and speed of economic recovery but expressed confidence in the company's positioning for future growth [24][25] - The sentiment among partners is starting to lift slightly, indicating potential for improved market conditions [10] Other Important Information - The company has established a new funding partnership and extended its bank facility through August 2026, ensuring adequate capital for operations and growth [20] - A significant reduction in operating expenses of $27 million was achieved, with labor savings of approximately $15 million [17][18] Q&A Session Summary Question: Will there be any months in FY 'twenty six with positive net profit after tax? - Management indicated that while they cannot specify exact months, they have a clear plan and forecast, with expectations of ramping up activity after slower months [26] Question: Is a capital raise likely given the erosion of equity and uncertain net profit? - Management stated they expect a positive EBT but are focused on ensuring adequate capital for business operations and growth [27] Question: What is the EBT range guidance for the coming year? - Management refrained from providing specific guidance due to economic uncertainty but confirmed a return to positive EBT in FY 'twenty six [28] Question: Can management provide clarity on core freight revenue and margin amidst the realignment of fuel services? - Management declined to share specific details on core freight results, citing confidentiality regarding customer relationships [29] Question: No further questions were raised during the session. - The operator confirmed there were no additional questions, concluding the conference [31]

Financial Data and Key Metrics Changes - Group normalized revenue increased by 3% to AUD 541.6 million, with normalized unpata at AUD 103.2 million, down 4.1% year-on-year [4][14][26] - Statutory net profit after tax rose by 6.4% to AUD 95.8 million, while normalized return on capital employed increased to 63.4% [6][14][26] - The cost to income ratio improved by 230 basis points in the second half compared to the first half, with a full-year ratio of approximately 58.7% [5][44][26] Business Line Data and Key Metrics Changes - Group Remuneration Services (GRS) segment saw normalized revenue slightly up to AUD 293.4 million, with novated lease sales growing by 4.1% [16][17] - Asset Management Services (AMS) revenue increased by 4.3% to AUD 185.5 million, with written down value up 6.4% [22] - Participant numbers in the Plan and Support Services (PSS) segment grew by 10.5% organically, with total customers increasing by 21.5% to over 42,600 [23][24] Market Data and Key Metrics Changes - The EV percentage of new novated sales reached 56% in Q3 before returning to around 45% in Q4, consistent with previous periods [18][19] - Demand and momentum remained strong, with order growth of 11.3% in June and July compared to the same period last year [18] - The company reported a strong customer growth across all segments, particularly in the SME segment [4][20] Company Strategy and Development Direction - The company aims to be a trusted partner providing solutions that simplify processes, focusing on customer experience, technology enablement, and broadening its ecosystem of partners [7][10] - Investments in digital solutions, AI, and automation are central to enhancing customer experience and operational productivity [8][10] - The Simply Stronger program has been completed, with expectations of improved customer experiences and productivity gains [13][29] Management's Comments on Operating Environment and Future Outlook - The company expects auto supply and used car values to remain stable, with continued growth in new client wins and NDIS participant growth supporting customer growth across all segments [33][35] - Management anticipates benefits from strategic investments and the removal of non-recurring costs in FY 2026 [35][36] - The company remains optimistic about growth opportunities despite the removal of setup fees impacting margins in the PSS segment [56][72] Other Important Information - The company executed a successful AUD 300 million private placement, enhancing investor diversity and lowering funding costs [6][21] - The Onboard Finance segment's normalization concluded in FY 2025, with expectations of neutral contributions in FY 2026 [47][52] - The company maintained a strong balance sheet with no maturities due in the next twelve months, providing flexibility for growth [31] Q&A Session Summary Question: Can you unpack the drivers for the improvement in novated yield? - The improvement was largely due to a higher proportion of plug-in hybrids at higher price points and improvements in insurance related to residual risk [39][40] Question: Is the 4.7% of novated leases through Olli incremental business? - Most of the new customers acquired through Olli are in employee brackets of 20 to 200, which was not previously targeted [41][42] Question: What should be expected for the cost to income ratio in FY 2026? - A fair assessment for FY 2026 would be around the 57% mark, with further benefits expected from productivity investments [44][46] Question: Will onboard finance be a positive contributor to NPATA for FY 2026? - It is expected to be neutral for FY 2026, with positive contributions anticipated thereafter [47][48] Question: How do you view margin within PSS with the new acquisition? - There will be a bit of downward movement on the margin in 2026, but automation and process improvements are expected to help recover margins over time [55][56] Question: What is the outlook for GRS contract renewals? - Approximately 10% of the portfolio is up for renewal over the next eighteen months, with a strong pipeline for new opportunities [86][87]

Financial Data and Key Metrics Changes - The company reported a significant improvement in normalized earnings before tax, which increased by 61% year on year, marking the strongest quarterly normalized EBT result in two years [5][19] - Gross margin percentage improved by 4.1 percentage points, with gross margin dollars up 13.4%, indicating effective cost management and efficiency programs [6][18] - The net loss after tax reduced by $32.5 million to $15.6 million, showing consistent improvement throughout the year [17] Business Line Data and Key Metrics Changes - The freight and fuel business experienced a turnaround, with normalized earnings loss improving by 90% year on year, moving to a positive result in Q4 FY '25 [11] - Warehousing faced ongoing challenges due to increased industry capacity and aggressive pricing tactics, leading to a need for a reset in the business [12][13] - The specialist business performed well, particularly in infrastructure projects, with a healthy pipeline for the next two years [14] Market Data and Key Metrics Changes - The trading environment in FY '25 was challenging due to ongoing economic headwinds, low business and consumer confidence, and cost of living pressures [8] - Increased competitor activity and aggressive pricing were noted, particularly in the warehousing sector, leading to a glut in capacity [9][12] - Despite these challenges, there are signs of improving sentiment among partners, indicating potential recovery [10] Company Strategy and Development Direction - The company is focused on transitioning from cost reduction to value creation as part of its Accelerate transformation program, which has one year remaining [6][22] - The New Horizons roadmap aims to establish the company as the preferred logistics provider in New Zealand by FY '28 [21] - Priorities include improving performance in warehousing, enhancing customer retention, and investing in technology for data-driven decisions [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the timing and speed of economic recovery but expressed confidence in the company's positioning and readiness for growth [23][24] - The focus on gross margin improvements is expected to provide a stronger foundation for future earnings growth [24] - Management is optimistic about returning to positive normalized EBT in FY '26 [24] Other Important Information - The company has established a new funding partnership and extended its bank facility through August 2026, ensuring adequate capital for operations and growth [19][20] - A significant reduction in operating expenses of $27 million was achieved, with labor savings of approximately $15 million [17][18] Q&A Session Summary Question: Will there be any months in FY '26 with positive net profit after tax? - Management could not specify exact months but indicated a clear plan and forecast, noting that the freight and logistics sector typically ramps up after slower months [25] Question: Is a capital raise likely given the erosion of equity and uncertain net profit? - Management stated that while they expect positive EBT, they are focused on ensuring adequate capital for business operations and growth [26][27] Question: What is the EBT range guidance for the coming year? - Management refrained from providing specific guidance due to economic uncertainty but confirmed a return to positive EBT in FY '26 [28] Question: Can management provide clarity on core freight revenue and margin after the realignment of fuel services? - Management declined to share specific details on core freight results, citing confidentiality regarding customer data [29][30]

Financial Data and Key Metrics Changes - Revenue increased to $134 million, representing a 6% growth compared to the previous year [10][4] - Underlying EBITDA grew by 34% to $19.3 million, marking the strongest financial performance since the pandemic [10][11] - Underlying net profit after tax before goodwill impairment was $2.1 million, the first underlying profit since the pandemic [11][4] - Cash position improved by $2.8 million year-over-year [4] Business Line Data and Key Metrics Changes - The Skydive segment reported a revenue growth of 5% and underlying EBITDA growth of 27%, driven by improved volumes and site efficiencies [12][11] - Adventure Experiences segment saw a revenue increase of 7% and underlying EBITDA growth of 14%, with Treetops and Reef Unlimited leading the performance [15][16] - All business units reported improved earnings performance compared to previous periods [7] Market Data and Key Metrics Changes - The overall improvement in domestic and international tourism in Australia and New Zealand was a key driver for the group's performance [8][11] - The return of international visitation, particularly from the UK and Europe, was noted as a significant factor in trading performance [28] Company Strategy and Development Direction - The company will focus on four key areas: business performance improvement, sustaining trading momentum, future growth, and quality of the portfolio [23][24] - Plans for organic growth include new products and expansion of existing experiences, particularly in the marine and treetops divisions [25][26] - The company is actively looking for bolt-on acquisitions in the Outdoor Adventure and Marine segments [27] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the trading outlook due to improved operating margins and a focus on direct bookings [35][36] - The company is optimistic about the recovery of the international market, particularly from China, and expects continued growth in inbound visitation [36][40] - Management acknowledged the impact of weather on trading but remains confident in the overall business performance [71] Other Important Information - The Board declared a fully franked dividend of $0.25, the first since FY 2018, reflecting confidence in future trading momentum [4][29] - The company maintained a modest net debt and gearing level, with a closing cash balance of CAD 11.1 million [18] Q&A Session Summary Question: What is driving the company's confidence? - The confidence stems from improved operating margins, increased direct bookings, and a positive outlook for international visitation [35] Question: How does the company manage skydiving operations across different locations? - The company can transfer customers and tandem masters between locations to optimize operations based on weather conditions [38] Question: What is the rationale behind the dividend declaration? - The Board felt confident in the trading performance and outlook for FY 2026, believing the company has the capacity to pay the dividend [53] Question: What are the expectations for the Skydive segment's recovery? - The company remains confident in recovering to pre-COVID levels, despite some changes in the business structure [56] Question: How is the company managing capital expenditures? - Maintenance CapEx is driven by scheduled activities, while growth CapEx is focused on strategic investments to support future growth [60]

Financial Data and Key Metrics Changes - Revenue from cell therapy products increased to $17.2 million, up 191% from the prior year, driven by the successful launch of Ryoncil [12][15] - Net operating cash spend for the year was $50 million, consistent with the prior year, despite investments in commercial team build-out and product launch activities [13][15] - Cash on hand as of June 30 was $162 million [13] Business Line Data and Key Metrics Changes - Ryoncil generated $13.2 million in gross sales and $11.3 million in net sales after a 14.6% gross to net adjustment [12] - Cost of revenues related to product sales was $1.2 million, representing 10% of net product sales, resulting in a gross margin of 90% [15] - Selling, general, and administrative expenses rose to $39.3 million, an increase of $14.3 million from FY 2024, primarily due to the commercial team build-out [15] Market Data and Key Metrics Changes - The addressable market for Ryoncil in pediatric acute graft versus host disease (GVHD) is significant, with potential label extensions in adult populations and other inflammatory diseases [9][10] - The addressable market for heart failure with reduced ejection fraction and chronic low back pain is estimated to exceed $10 billion each [9] Company Strategy and Development Direction - The company aims to expand Ryoncil's label to include adult patients with GVHD and other inflammatory conditions, leveraging existing pediatric treatment centers [24][25] - Plans to initiate pivotal studies for Ryoncil in inflammatory bowel disease and chronic low back pain are underway, targeting significant unmet medical needs [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the commercial launch of Ryoncil and its potential to transform the company from an R&D-focused entity to a commercial biotech organization [87] - The company is focused on building a robust commercial infrastructure to support ongoing sales growth and market access [76][82] Other Important Information - Ryoncil became commercially available on March 28, 2025, shortly after receiving FDA approval in December 2024 [10] - The company has onboarded 32 transplant centers in the U.S. and aims to reach 45 centers that account for 80% of pediatric bone marrow transplants [10][11] Q&A Session Summary Question: Timeline for adult GVHD label extension - Management expects to commence an adult acute GVHD trial this quarter, working with the NIH-funded Bone Marrow Transplant Clinical Trials Network [46][48] Question: Progress on Phase III chronic lower back pain trial - Enrollment is ongoing with nearly 40 sites, and management is optimistic about achieving similar outcomes as in previous trials [50][51] Question: Monthly treatment kits administered and inventory dynamics - Treatment kits are stocked based on weight bands, with replenishment occurring as children are treated [56][57] Question: Gross to net dynamics and adult GVHD trial design - Management expects gross to net adjustments to remain flat and plans to include patients on Jakafi in the adult trial to maximize market potential [59][60] Question: Details on adult study and trial design - The FDA is aligned with the company on trial design, focusing on early intervention in severe adult populations [64][66] Question: Timeline for inflammatory bowel disease trials - A KOL group is designing the trial, with plans to use both local and intravenous delivery methods [68] Question: Market access progress - The company has engaged with over 97 payers, achieving coverage for over 250 million lives, with Medicaid coverage in place across all states [82][83]

Financial Data and Key Metrics Changes - Revenue from cell therapy products increased to $17.2 million, up 191% from the prior year, driven by the successful launch of Ryoncil [12][15] - Net operating cash spend for the year was $50 million, consistent with the prior year, despite investments in commercial team build-out and product launch activities [13][15] - Cash on hand as of June 30 was $162 million [13] Business Line Data and Key Metrics Changes - Ryoncil generated $13.2 million in gross sales and $11.3 million in net sales after a 14.6% gross to net adjustment [12] - Cost of revenues related to product sales was $1.2 million, representing 10% of net product sales, resulting in a gross margin of 90% [15] - Selling, general, and administrative expenses rose to $39.3 million, an increase of $14.3 million from FY 2024, primarily due to the commercial team build-out and product launch [15] Market Data and Key Metrics Changes - The addressable market for Ryoncil in pediatric acute graft versus host disease (GVHD) is approximately $1 billion, with potential label extensions in adults and inflammatory bowel disease exceeding $5 billion [8] - The addressable market for chronic low back pain and heart failure with reduced ejection fraction is each over $10 billion [8] Company Strategy and Development Direction - The company aims to expand Ryoncil's label to include adult patients with GVHD and other inflammatory conditions, leveraging existing pediatric treatment centers [24][25] - Plans to initiate pivotal studies for Ryoncil in inflammatory bowel disease and chronic low back pain, targeting significant unmet medical needs [40][41] - The company is transitioning from an R&D-focused organization to a commercial biotech entity, emphasizing the importance of building a robust commercial infrastructure [87] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the successful launch of Ryoncil and the potential for continued revenue growth as more treatment centers are onboarded [76] - The company is focused on addressing the opioid crisis by providing alternatives for chronic pain management through its RexLemistroCell product [32] - Management highlighted the importance of FDA alignment for accelerated approval pathways and ongoing discussions regarding trial designs for heart failure and inflammatory bowel disease [77] Other Important Information - Ryoncil became commercially available on March 28, 2025, shortly after receiving FDA approval in December 2024 [10] - The company has onboarded 32 transplant centers in the U.S. and aims to reach 45 centers that account for 80% of pediatric bone marrow transplants [10][11] - Medicaid coverage for Ryoncil was mandated on July 1, expanding access to over 250 million lives in the U.S. [11][82] Q&A Session Summary Question: Timeline for adult GVHD label extension - Management expects to commence an adult acute GVHD trial this quarter, aiming to add Ryoncil on top of existing second-line agents [45][46] Question: Update on Phase III chronic lower back pain trial - Enrollment is progressing well with almost 40 sites, and management is optimistic about outcomes similar to previous trials [48][50] Question: Monthly treatment kits administered and inventory dynamics - Treatment kits are stocked based on weight bands, and inventory is replenished as children are treated [55][56] Question: Gross to net dynamics and adult GVHD trial design - Management expects gross to net adjustments to remain flat and will target patients on Jakafi for the adult trial [59][60] Question: Details on adult study and trial design - The trial will focus on patients with severe disease on Jakafi, aiming to increase responder rates significantly [64][65] Question: Timeline for inflammatory bowel disease trials - A KOL group is designing the trial, with updates expected this quarter [68] Question: Distribution of initial sales and revenue trajectory - It is too early to project future sales, but management expects continued strengthening of sales as infrastructure is built [73][76] Question: Market access progress - The company has engaged with over 97 payers, achieving coverage for over 250 million lives, with Medicaid coverage in place across all states [81][82]

Financial Data and Key Metrics Changes - Gap Inc. reported a gross margin expansion of 360 basis points to 41.2% in the second quarter compared to the same period two years ago [7] - The company achieved an operating margin of 7.8% and earnings per share (EPS) of $0.57, which is a 6% increase year-over-year [10][31] - Cash balances at the end of the quarter were approximately $2.4 billion, allowing for targeted investments [10][32] Business Line Data and Key Metrics Changes - Old Navy's net sales were $2.2 billion, up 1% year-over-year, with comparable sales increasing by 2% [33] - Gap brand net sales reached $772 million, up 1% year-over-year, with comparable sales up 4% [34] - Banana Republic's net sales were $475 million, down 1% year-over-year, but comparable sales increased by 4% [34] - Athleta's net sales decreased by 11% year-over-year to $300 million, with comparable sales down 9% [35] Market Data and Key Metrics Changes - Comparable sales for Gap Inc. increased by 1% in the quarter, with positive contributions from Old Navy, Gap, and Banana Republic [10] - Athleta faced challenges, indicating a need for a brand reset to align with customer expectations [23] Company Strategy and Development Direction - The company is focused on four strategic priorities: maintaining financial and operational rigor, reinvigorating brands, strengthening the platform, and energizing culture [6][8] - The brand reinvigoration playbook is driving growth across three of the four brands, with a particular emphasis on denim and active categories [11][12][21] - The company is investing in technology to enhance efficiency and customer experience, including leveraging AI in various operations [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic environment and achieve sustainable, profitable growth [6][9] - The outlook for fiscal 2025 includes net sales growth of 1% to 2%, despite anticipated headwinds from tariffs [30][41] - Management noted that the impact of tariffs is expected to be approximately 100 to 110 basis points on operating margin [42] Other Important Information - The company is committed to returning value to shareholders, having returned approximately $144 million through share repurchases and dividends [32] - The company ended the quarter with a strong balance sheet, including $2.4 billion in cash and equivalents, providing financial flexibility for future investments [38] Q&A Session Summary Question: Concerns about lowering full-year EBIT and EPS guidance despite strong Q2 performance - Management acknowledged the solid Q2 results but indicated that the updated guidance reflects headwinds from trade policies, particularly tariffs impacting operating margins [50][52] Question: Confidence in achieving double-digit margins in the long term - Management expressed confidence in long-term operating margin improvement opportunities, emphasizing the effectiveness of their strategies and playbook [55][56] Question: Drivers of revenue acceleration in the third quarter forecast - Management highlighted the strong performance of Gap and Old Navy, with positive trends in back-to-school assortments contributing to confidence in the third quarter [74][82] Question: Pricing strategy and its role in mitigating tariff pressures - Management clarified that pricing strategies are being used to maintain value propositions while mitigating tariff impacts, with a disciplined approach to pricing across brands [86][87]

Summary of Chime Conference Call Company Overview - **Company**: Chime - **Industry**: Fintech and Digital Banking - **Target Market**: 200 million U.S. adults earning up to $100,000 annually, a segment often overlooked by traditional banks [5][6] Core Insights and Arguments - **Disruption in Banking**: Chime positions itself as a digital disruptor in payments and banking, focusing on financial progress for its members [5] - **Customer Engagement**: 97% of members report that Chime has helped them unlock financial progress, with active members transacting 55 times per month on average [5][10] - **Primary Account Relationships**: Chime has a high percentage of active members using it as their primary account, which drives engagement and profitability [8][9] - **Cost Structure Advantage**: Chime's cost to serve is estimated to be 1.3 to 1.5 times lower than that of incumbent banks, allowing for a transaction margin of nearly 70% [14][15] - **Brand Awareness**: Chime's brand awareness among its target demographic rivals that of the largest banks in America, with 8.7 million active members [16][17] Growth Metrics - **User Growth**: Active members grew by 23% year-over-year in Q2, with a reduction in tax by over 10% [20] - **Revenue Per Member**: Average revenue per active member (RPM) increased by 12% year-over-year in Q2 [20][55] - **Cohort Profitability**: Recent cohorts show a transaction profit customer acquisition cost (CAC) payback period of 5 to 6 quarters, compared to 7 quarters previously [21] Product Innovations - **MyPay**: Launched to provide members access to earned wages on demand, generating a revenue run rate of $300 million within a year [24] - **Loss Rate Management**: MyPay's loss rates improved from 1.6% to 1.4%, with a long-term target of 1% [28][27] - **Chime Enterprise**: A new initiative to offer Chime's products through employers, enhancing customer acquisition and engagement [40][41] Strategic Focus - **Payments-Driven Model**: Chime emphasizes a payments-driven business model rather than a lending-centric approach, focusing on monetizing through primary account relationships [36] - **Product Roadmap**: Plans to expand into investing and long-term savings products to meet evolving customer needs [77] - **AI Integration**: Chime is leveraging AI to enhance customer support, automating 72% of interactions and improving member satisfaction [80][81] Financial Outlook - **Adjusted EBITDA Margins**: Targeting a long-term adjusted EBITDA margin of 35%, with improvements expected as operational leverage increases [66][67] - **Transaction Margin Fluctuations**: Transaction margins are expected to fluctuate but are projected to improve as the business scales [60] Additional Insights - **Customer Retention**: Chime does not see significant customer graduation to other banks, indicating strong retention [76] - **Data Utilization**: Chime's proprietary technology stack allows for faster innovation and better data utilization for AI applications [71][82] This summary encapsulates the key points discussed during the conference call, highlighting Chime's strategic positioning, growth metrics, product innovations, and financial outlook.

Financial Data and Key Metrics Changes - The company reported total revenue of $415 million for Q1 2026, representing a 20% year-over-year growth and an 18% growth on a constant currency basis [27] - Sales-led subscription revenue, excluding monthly Elastic Cloud, was $339 million, growing 22% as reported and 20% on a constant currency basis [27] - The non-GAAP operating margin was 16%, with a gross margin of 79% [33][34] Business Line Data and Key Metrics Changes - The company saw strong performance across both cloud and self-managed environments, with significant customer commitments and key wins in all solution areas [28] - The security business achieved strong results, with one-third of new and expansion deals coming from competitive displacements [19][28] - The number of customers spending over $100,000 annually grew to more than 1,550, indicating strong enterprise adoption [8] Market Data and Key Metrics Changes - In the U.S. public sector, signs of stabilization were noted, with a strategic agreement with the U.S. General Services Administration boosting interest among federal agencies [10][29] - The current remaining performance obligations (CRPO) were approximately $956 million, growing 18% year-over-year [30] Company Strategy and Development Direction - The company is focusing on leveraging its Search AI platform to drive growth in generative AI applications and platform consolidation across industries [24][100] - The introduction of new capabilities, such as the Elastic AI SOC engine (EASE), aims to enhance threat detection and drive competitive advantage in the security market [22][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong execution and momentum heading into the remainder of fiscal 2026, raising revenue guidance due to better-than-expected macro conditions [35][36] - The company anticipates sustained adjusted free cash flow margins and expects total revenue for fiscal 2026 to be in the range of $1.679 billion to $1.689 billion, representing approximately 14% growth [37] Other Important Information - The company is participating in several upcoming conferences, including Citi's Global TMT Conference and the Goldman Sachs Communicopia and Technology Conference [6] - A Financial Analyst Day is scheduled for October 9, where the company will showcase its Elasticsearch AI platform [38] Q&A Session Summary Question: Customer spend uplift related to AI - Management noted that as customers utilize AI applications, workloads tend to be more compute-intensive, leading to increased consumption and spending [41][44] Question: Impact of price increase on guidance - The price increase is expected to lift the floor year-over-year, contributing to overall growth, but the majority of growth comes from performance rather than price increases [46][48] Question: Growth mix across business areas - Management highlighted strong performance across all solution areas, with search driven by generative AI being a significant tailwind, alongside security and platform consolidation [52][53] Question: Predictability of the model - The sales-led subscription side has shown strong execution and predictability, while consumption remains slightly unpredictable on a quarter-over-quarter basis [54] Question: Competitive displacements in security - The shift towards viewing security as a data problem is driving competitive displacements, with customers increasingly consolidating onto the company's platform [60][62] Question: Self-managed growth acceleration - The growth in self-managed solutions was broad-based, contributing significantly to overall subscription revenue growth [68] Question: Federal business stabilization - Management confirmed stabilization in the U.S. public sector, with no significant flush expected in Q2, and the sales team is well-positioned to execute [90][93]