DXC Technology Company (NYSE:DXC) Q3 2026 Earnings call January 29, 2026 05:00 PM ET Company ParticipantsBrendan Biles - Equity Research AssociatePaul Obrecht - Equity Research AssociateRaul Fernandez - President and CEORob Del Bene - CFORod Bourgeois - Managing Partner and Head of ResearchRoger Sachs - VP of Investor RelationsConference Call ParticipantsAntonio Jaramillo - Equity Research AnalystBryan Bergin - Managing Director and Senior Equity Research AnalystJamie Friedman - Financial Analyst and Valuat ...

Financial Data and Key Metrics Changes - The company reported growth in adjusted earnings per share despite declines in loan performance and loan volume [14] - Loan unit volume improved to a decline of 9.1% this quarter, compared to a decline of 16.5% last quarter, while loan dollar volume improved to a decline of 11.3% this quarter, versus a decline of 19.4% last quarter [15] - Changes to the forecast of future net cash flows improved, with the rate of decline narrowing from $58.6 million (0.5%) in Q3 2025 to $34.2 million (0.3%) in Q4 2025 [15] Business Line Data and Key Metrics Changes - The company financed nearly 72,000 contracts for dealers and consumers, collecting $1.3 billion overall [14] - The underperformance of the 2024 vintage was primarily related to loans originated prior to the scorecard change during Q3 2024 [14] - The number of active dealers declined by 2.8% year over year, and the average unit volume per active dealer declined by 6.4% year over year [16] Market Data and Key Metrics Changes - The company's market share in the core segment of used vehicles financed by subprime consumers was 4.5% for the first two months of Q4, down from 5.4% for the same period in 2024 [16] - The loan portfolio increased by 1% year over year on an adjusted basis [16] Company Strategy and Development Direction - The company aims to generate dealer and consumer demand by deepening relationships within the dealer network and leveraging data-driven insights [9] - The strategic objectives include empowering dealers through preferred channels and delivering world-class servicing and processing [9] - The CEO emphasized a focus on removing friction for customers and enhancing servicing capabilities through artificial intelligence [8] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the impact of high inflation on subprime consumers and expressed a conservative approach to lending [19] - The CEO highlighted the importance of being customer-focused rather than competitive-focused, aiming to build solutions for large independent and franchise dealers [26] - The management believes the company is well-positioned to serve subprime customers across various economic cycles [37] Other Important Information - The company was named one of America's top 100 Most Loved Workplaces for the second consecutive year, ranking number 6 [12] - The CEO plans to layer technology and a data-informed approach on the company's strong foundation to enhance customer experience [13] Q&A Session Summary Question: How will the new CEO manage credit lending and underwriting? - The CEO plans to take a long-term and conservative approach to lending while continuously improving credit scoring models [19] Question: What is driving the increase in the provision for new originations? - The increase is attributed to the mix between the portfolio and purchase program, with the initial provision on the purchase program being significantly higher [21][22] Question: What is the competitive environment like, given the decline in market share? - The CEO noted that the competitive environment is evolving, with a focus on customer needs rather than competition [26] Question: How does the company view its leverage and capital distributions? - The company maintains its strategy regarding capital allocation and leverage, ensuring sufficient capital for new originations [33] Question: What is the perspective on affordability issues and used car prices? - The CEO believes the company is well-positioned to serve subprime customers regardless of economic cycles, focusing on a frictionless experience [37] Question: What is the outlook on prepayments in the portfolio? - There has been a decline in prepayments, which may indicate customers are staying in their vehicles longer [44]

Credit Acceptance (NasdaqGS:CACC) Q4 2025 Earnings call January 29, 2026 05:00 PM ET Company ParticipantsJay Brinkley - VPJay Martin - CFOJohn Hecht - Managing DirectorVinayak Hegde - CEOConference Call ParticipantsMoshe Orenbuch - Managing Director and Senior AnalystRobert Wildhack - Director and Equity Research AnalystOperatorGood day, everyone, and welcome to the Credit Acceptance Corporation Fourth Quarter 2025 Earnings Call. A webcast recording and transcript of today's earnings call will be made avail ...

Financial Data and Key Metrics Changes - For 2025, the company reported a revenue growth of 17% to a record $12.745 billion, with earnings per share increasing by 29% year-over-year [4][5] - Gross margins and operating margins were maintained at 62.8% and 43.6%, respectively, while free cash flow grew by 30% to $4.4 billion [5][6] - In the December quarter, revenue was $3.3 billion, with non-GAAP diluted EPS at $8.85 and GAAP diluted EPS at $8.68, reflecting a 17% year-over-year revenue growth [6][10] Business Line Data and Key Metrics Changes - The process control systems business revenue grew by 19%, while the service business grew by 15% for the year [6][8] - Advanced packaging revenue reached approximately $950 million for calendar 2025, representing over 70% year-over-year growth [8] - The service business generated $786 million in the December quarter, up 6% sequentially and 18% year-over-year, marking the 16th consecutive year of annual service revenue growth [8] Market Data and Key Metrics Changes - The company expects the core wafer fabrication equipment (WFE) market to grow in the high single- to low double-digit percentages, reaching the low $120 billion range in 2026 [13][14] - Advanced packaging is projected to grow similarly to approximately $12 billion, contributing to a total market forecast in the mid-$130 billion range [14] - China’s WFE market is expected to be flat or slightly positive in 2026, with the company estimating it to be in the mid- to high-$30 billion range [30] Company Strategy and Development Direction - The company is focused on supporting customers, investing in next-generation product development, and executing product roadmaps to drive productivity [15][18] - KLA aims to capitalize on technology transitions and growth drivers in the semiconductor industry, particularly in advanced packaging and process control [18][19] - The company is positioned to benefit from increasing demand for custom silicon and advanced process control solutions [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s ability to outperform the market in 2026, driven by rising process control intensity and growth in advanced packaging [17][18] - The first half of 2026 is expected to see mid-single-digit revenue growth compared to the second half of 2025, with accelerating growth anticipated in the latter half [15][17] - Management noted supply constraints impacting growth potential, particularly in the first half of the year, but expressed optimism for the second half [31][50] Other Important Information - The company ended the quarter with $5.2 billion in cash and cash equivalents, and $5.9 billion in debt [12] - The effective tax rate for the quarter was 15%, with expectations for a planning tax rate of 14.5% for 2026 [11][17] - The company’s business model is designed to deliver 40%-50% incremental operating margin leverage on revenue growth over the long run [16] Q&A Session Summary Question: Clarification on WFE growth forecast - The company clarified that its forecast for WFE growth is around $110 billion for 2025, with advanced packaging contributing to a total of low $120s for 2026, differing from peers' higher estimates due to varying definitions of WFE [22][25] Question: Supply constraints impact - Management indicated that supply constraints are primarily due to long lead times for optical components, affecting first-half growth potential, but they expect to see acceleration in the second half of 2026 [48][50] Question: Growth in inspection and patterning - The company expects continued strong growth in inspection and patterning, driven by increased demand for yield and manufacturability, particularly in the context of AI and advanced memory technologies [37][39] Question: Trajectory of gross margins - Management anticipates that March will be the low point for gross margins, with expectations for gradual improvement throughout the year, driven by product mix and volume increases [52][60] Question: DRAM process control intensity - The company noted that DRAM process control intensity is increasing, driven by technological advancements and customer demand for higher performance, but it remains distinct from advanced logic [67][69]

LPL Financial (NasdaqGS:LPLA) Q4 2025 Earnings call January 29, 2026 05:00 PM ET Company ParticipantsAlexander Blostein - Managing DirectorBen Budish - DirectorCraig Siegenthaler - Managing DirectorDevin Ryan - Director of Financial Technology ResearchMatt Audette - President and CFOMichael Cyprys - Managing DirectorRich Steinmeier - CEOSteven Chubak - Managing DirectorWilma Burdis - DirectorConference Call ParticipantsBill Katz - Senior Equity AnalystBrennan Hawken - Senior Equity Research AnalystDan Fanno ...

Financial Data and Key Metrics Changes - For Q4 2025, the company reported net income of $107 million, or $1.97 per share, with an annualized return on equity (ROE) of 10% [2][12] - Full year 2025 results showed a 38% increase in pretax income and a 61% increase in net income compared to 2024, with a 12% ROE and an 11% growth in book value per share [4][12] - The production segment income growth was impacted by competitive dynamics, leading to a 10% annualized ROE in Q4, down from expectations of high teens to low 20s [3][4] Business Segment Data and Key Metrics Changes - In the production segment, total volumes increased by 25%, resulting in a 19% increase in pretax income [4] - The servicing segment grew the total unpaid principal balance (UPB) of its portfolio by 10%, contributing to a 58% increase in pretax income from the prior year [4][17] - Consumer Direct volumes saw a significant increase, with originations up 68% and locks up 25% from the prior quarter, although margins were pressured by competition [15][16] Market Data and Key Metrics Changes - The company serviced a combined $312 billion in UPB of loans with note rates above 5%, indicating a significant opportunity for refinancing as rates decline [7] - The correspondent channel maintained a dominant position with total acquisitions over $30 billion in Q4, up 10% from the prior quarter, although margins decreased due to increased competition [14] Company Strategy and Development Direction - The company is focusing on technological investments, particularly in AI and the Vesta loan origination system, to enhance efficiency and capture recapture opportunities [8][10] - The strategy includes accelerating capacity to handle increased origination volumes and improving recapture rates through targeted investments [27][28] - The company aims to achieve mid to high teens ROEs by mid-year 2026, supported by operational efficiencies and market share growth [11][28] Management's Comments on Operating Environment and Future Outlook - Management noted that the competitive environment for refinances was stronger than historically seen, impacting expected margin expansion [26][39] - The company anticipates continued growth in the origination market, with expectations for production in Consumer Direct to increase [30][68] - Management expressed confidence in the ability to adapt to market conditions and improve recapture rates, despite current competitive pressures [27][56] Other Important Information - The company declared a fourth quarter common share dividend of $0.30 per share [12] - The hedge ratio was increased to near 100%, providing greater protection against interest rate declines [19][58] - The company ended the quarter with $4.6 billion in total liquidity, ensuring significant resources for opportunistic deployment [21] Q&A Session Summary Question: Discussion on increasing capacity in Consumer Direct - Management acknowledged that while they had anticipated increased capacity, the competitive environment was unexpectedly strong, leading to lower margins [25][26] Question: Insights on prepayment speeds and cash flow realization - Management noted that prepayment speeds were higher than expected, impacting margins, and they expect cash flow realization to remain consistent with Q4 levels [34][70] Question: Impact of potential G-fee reductions on the company - Management does not foresee significant G-fee reductions but is prepared to leverage capacity if such changes occur [59][60] Question: FHA delinquencies increase context - Management explained that the increase in FHA delinquencies was seasonal and related to policy changes, expecting a return to previous levels [75][77] Question: Buyback authorization status - The company has over $200 million available for buybacks, which is a tool for capital allocation [95]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $248 million, a 22% year-over-year increase, while full-year revenue was $951 million, representing 20% year-over-year growth [4][15] - Non-GAAP operating margin for the fourth quarter was 24.9%, compared to 20.2% last year, and for the full year, it was 24.7%, down from 25.2% last year [17] - Core revenue, now referred to as subscription services revenue, was $56 million in the fourth quarter, a 17% year-over-year increase [15][16] Business Line Data and Key Metrics Changes - Subscription services revenue for the full year was $211 million, representing 17% growth year-over-year [16] - Fourth quarter revenue from value-added services grew 20% year-over-year to $185 million, driven by increased adoption of FolioGuard, FolioScreen, and online payments [16] - Full year value-added services revenue was $722 million, representing 19% growth year-over-year [17] Market Data and Key Metrics Changes - The company managed approximately 9.4 million units from 22,096 customers, compared to 8.7 million units from 20,784 customers a year ago, reflecting an 8% increase in units and a 6% increase in customers [16] - In the second half of 2025, over 500,000 units were added to the platform, with adoption of premium tiers exceeding 25% [10] Company Strategy and Development Direction - The company focuses on three strategic pillars: Differentiate to Win, Deliver Performance Efficiently, and Great People and Culture [7][11][12] - The introduction of agentic AI capabilities aims to transform property managers into performance managers, enhancing operational efficiency and customer experience [7][10] - The company is positioned to lead the transition towards a unified platform that reduces software fragmentation and enhances user experience [6] Management's Comments on Operating Environment and Future Outlook - Management noted that while 81% of managers feel positive about the market, rising operating costs and occupancy rate pressures remain challenges [5] - The 2026 guidance for annual revenue is projected to be between $1.1 billion and $1.12 billion, with a midpoint growth rate of 17% [19] - Management emphasized the importance of innovation and execution in achieving customer performance and maintaining a competitive edge [20] Other Important Information - The company has been recognized on Forbes' America's Most Successful Midcap Companies and Time Magazine's America's Growth Leaders, validating its strategy and momentum [4] - The company ended 2025 with 1,702 employees, reflecting a 4% increase from the previous year, indicating ongoing investment in innovation and sales capacity [18] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

FinWise Bancorp (NasdaqGM:FINW) Q4 2025 Earnings call January 29, 2026 05:00 PM ET Company ParticipantsAndrew Terrell - Managing DirectorBob Wahlman - CFOJim Noone - CEO of BankJuan Arias - Head of Investor RelationsKent Landvatter - Chairman and CEOConference Call ParticipantsAnya Pelshaw - AnalystJoe Yanchunis - Senior AnalystOperatorGreetings, and welcome to the FinWise Bancorp fourth quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer se ...

Axos Financial (NYSE:AX) Q2 2026 Earnings call January 29, 2026 05:00 PM ET Company ParticipantsDavid Feaster - DirectorDerrick Walsh - EVP and CFOGary Tenner - Managing DirectorGregory Garrabrants - CEOJohnny Lai - SVP of Corporate Development and Investor RelationsKelly Motta - DirectorKyle Peterson - Managing DirectorConference Call ParticipantsDavid Chiaverini - Equity Research AnalystOperatorGreetings and welcome to the Axos Financial second quarter 2026 earnings call and webcast. At this time, all par ...

LPL Financial (NasdaqGS:LPLA) Q4 2025 Earnings call January 29, 2026 05:00 PM ET Company ParticipantsAlexander Blostein - Managing DirectorBen Budish - DirectorCraig Siegenthaler - Managing DirectorDevin Ryan - Director of Financial Technology ResearchMatt Audette - President and CFOMichael Cyprys - Managing DirectorRich Steinmeier - CEOSteven Chubak - Managing DirectorWilma Burdis - DirectorConference Call ParticipantsBill Katz - Senior Equity AnalystBrennan Hawken - Senior Equity Research AnalystDan Fanno ...