Katapult (NasdaqGM:KPLT) Q3 2025 Earnings Call November 12, 2025 08:00 AM ET Speaker2Thank you for standing by. At this time, I'd like to welcome everyone to Katapult Holdings' third quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. I would now like to turn the call over to Jennifer Kull, Vice President, Head of Investor Relations. You may begin.Speaker0Welcome to Katapult's third quarter 2025 conference call. On the call with me today are Orlando Zayas, Chief E ...

Financial Performance & Outlook - Reported net sales increased by 8% to $468 million[18] - Adjusted operating income increased by 6% to $104 million[18] - Adjusted operating margin was 22.1%, a decrease of 50 bps[18] - Adjusted EPS increased by 6% to $1.94[18] - Free cash flow saw a significant increase of 144% to $100 million[18] - The company maintains a low-single-digit organic sales growth outlook for 2025[18, 19] Business Highlights - G1TM XR 2025 Edition SCBA received NFPA approval[19] - Strong performance continued in detection and industrial PPE during the third quarter[19] Strategic Focus - The company aims to be the leading provider of safety solutions[6] - The company is focused on driving profitable, above-market growth through its ACCELERATE strategy[20]

Investor Presentation Q3 2025 November 12, 2025 Forward Looking Statements This presentation contains historical information and forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the safe- harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of Perion. The words "will," "believe," "expect," "intend," "plan," "should," "es ...

Financial Performance - Revenue was $1.69 billion, a decrease of 3% year-over-year[12, 51] - Non-IFRS Gross Margin increased by 130bps year-over-year to 26.0%[12] - Non-IFRS Earnings per Share was $0.41, flat year-over-year[12] - Adjusted free cash flow margin was approximately 27% in Q3 2025[17] End Market Analysis - Automotive revenue increased by 20% year-over-year to $306 million[42] - Communications Infrastructure and Data Center revenue increased by 32% year-over-year to $175 million[50] - Smart Mobile Devices revenue was $752 million, a decrease of 13% year-over-year[40] - Home and Industrial IoT revenue was $258 million, a decrease of 16% year-over-year[45] Key Strategic Initiatives - GF is expanding manufacturing capabilities at the Dresden site with a €1.1 billion investment, aiming to increase production capacity to over one million wafers per year by the end of 2028[30] - GF and Silicon Labs are expanding their partnership in the U.S., with GF manufacturing high-performance wireless SoCs in Malta, New York[26]

Financial Performance - AUCATZYL achieved net product sales of $21.1 million in Q3 2025[10] - Total revenue for Q3 2025 was $21.194 million[55] - Revenue for the nine months ended September 30, 2025, reached $51.0 million[11] - The company reported a total comprehensive loss of $84.9 million in Q3 2025[55] - As of September 30, 2025, the company's cash position was $367.4 million[56] AUCATZYL Launch and Market Access - AUCATZYL has been launched in the US, with strong initial execution in relapsed/refractory B-ALL (r/r B-ALL)[7] - The company has established 60 authorized treatment centers[14] - AUCATZYL has achieved patient access for over 90% of U S covered lives, exceeding initial expectations[14] - CAR T market share in relapsed/refractory disease in 2024 is approximately 15%[15] Obe-cel Expansion and Pipeline - The company is exploring the potential of obe-cel in new indications beyond adult B-ALL, including pediatric ALL, lupus nephritis, and multiple sclerosis[7] - In a Phase 1 study of obe-cel in Systemic Lupus Erythematosus (SLE), 83.3% (5/6) of patients achieved DORIS (Definition of Remission in SLE)[40] - In the SLE study, 50% (3/6) of patients achieved CRR (complete renal response)[40]

Financial Performance - Revenue for 3Q25 was $455.1 million, representing a 6.6% year-over-year increase[14] - Adjusted EBITDA for 3Q25 was $261.5 million, with an Adjusted EBITDA margin of 57.5%[14] - Group ALFCF (Adjusted Levered Free Cash Flow) for 3Q25 reached $157.8 million, achieving a cash conversion rate of 60.4%[14] Regional Revenue Analysis - Nigeria's revenue in 3Q25 was $268.0 million, showing a 5.0% year-over-year increase[14] - SSA (Sub-Saharan Africa) revenue for 3Q25 amounted to $135.9 million, reflecting an 8.6% year-over-year increase[14] - Latam (Latin America) revenue in 3Q25 was $51.2 million, indicating an 11.2% year-over-year increase[14] Debt and Liquidity - Total Indebtedness as of 3Q25 was $3.9141 billion[16] - The company's cash and cash equivalents stood at $651.5 million as of 3Q25[16] - Consolidated net leverage ratio was 3.3x as of 3Q25[16] Operational Metrics - The company had 39,025 towers as of 3Q25[15] - The consolidated tenancy ratio was 1.48x in 3Q25[15]

Financial Highlights - In Q3 2025, total revenues reached US$21.1 million[9], while net income was US$9.3 million[9] - Non-Mainland China revenue contribution was 64.9% in Q3 2025[53] - In Q3 2025, the company sold 40k PetPhones[27] Business Line Performance - Life business (including PetPhone) experienced a year-over-year growth of 408.2% in Average Monthly Active Terminals (MAT) in Q3 2025[29] - Life business (excluding PetPhone) Year-over-Year Growth was 369.3% in Average Monthly Active Terminals (MAT) in Q3 2025[22] - SIM Business Line saw a year-over-year growth of 269.5% in Average Monthly Active Terminals (MAT) in Q3 2025, with over 400,000 units sold from Q1 2025 to Q3 2025[32, 33] - IoT Business Line achieved a year-over-year growth of 583.0% in Average Monthly Active Terminals (MAT) in Q3 2025[38] Operational Efficiency - Operating expenses for Q3 2025 were US$9.7 million[65] - R&D accounted for 61% of operating expenses in Q3 2025[65] - G&A accounted for 13% of operating expenses in Q3 2025[65] - S&M accounted for 26% of operating expenses in Q3 2025[65]

Company Overview - TIC Solutions is a provider of mission-critical engineering and tech-enabled services for industrial, infrastructure, and building customers[17] - The company operates across three segments: Inspection & Mitigation (~55% of 2024 revenue), Consulting Engineering (~30% of 2024 revenue), and Geospatial (~15% of 2024 revenue)[42, 60, 67] - The combined company had approximately $2 billion in revenue in 2024, with over 11,000 employees and 250+ locations[33] - Approximately 73% of the combined revenue comes from the United States, and 27% from international markets[24, 33] Strategic Priorities - The company's strategic priorities are integration, growth, and execution, focusing on unifying leadership and systems, and aligning go-to-market strategies[75, 79] - A synergy plan is in place with an estimated $25 million in cost savings[79, 91] - The company aims to invest in high-growth capabilities and end-market exposures, particularly in data centers and renewable energy[77, 80] Cross-Selling Opportunities - The combination of Acuren and NV5 presents significant cross-selling opportunities, such as expanding geographically and providing integrated asset intelligence offerings[90] - Early momentum in cross-selling includes 3D laser scanning for 1,000+ retail locations and digital twins at a Canadian mining facility[85, 89] Growth and Resilience - The company's services are mission-critical, non-discretionary, and often recurring, driving resilient financial performance across economic cycles[37, 32] - The company is advancing growth in infrastructure, climate, and grid resilience through consulting engineering and geospatial services[94, 95]

Financial Performance - Riskified's Q3 2025 revenue reached $81.9 million, a 4% year-over-year increase[49, 54] - The company's gross profit for Q3 2025 was $41.1 million[49] - Adjusted EBITDA for Q3 2025 was $5.6 million, a 518% year-over-year improvement[49, 56] - Non-GAAP operating expenses decreased from 49% to 44% of revenue year-over-year[57] - Riskified repurchased approximately 5.2 million ordinary shares for approximately $25.3 million in Q3 2025[63] Market Position and Growth - Riskified reviewed $148 billion in GMV in the last twelve months ended September 30, 2025[16, 20] - The company estimates the global ecommerce GMV to be $6.5 trillion in 2025 and $8.3 trillion in 2029[21] - Riskified's non-GAAP gross profit margin as of LTM Q3 2025 was 51%[18] - The company expects over $30 million in Free Cash Flow in 2025[73]

Business Performance - Lucid Diagnostics achieved a record quarterly revenue of $1.2 million in Q3 2024, a 20% increase compared to the previous quarter[6] - EsoGuard test volume reached 2,787 in Q3 2024[6] - Over 7,000 firefighters have undergone EsoGuard esophageal precancer testing[6] - Year-to-date revenue for 3Q24 reached $3.149 million, a $1.761 million increase compared to $1.388 million in 3Q23[34] Strategic Accomplishments - The ESOGUARD BE-1 clinical validation study was accepted for peer-reviewed publication[8] - A key patent underlying EsoGuard received a Notice of Allowance[8] - Lucid Diagnostics met with CMS Medicare Administrative Contractor (MAC) Palmetto GBA's Molecular Diagnostics Program (MolDX) to discuss EsoGuard clinical evidence package for upcoming submission for Medicare coverage[8] Financials - Cash reserves decreased from $24.920 million in 2Q24 to $14.489 million in 3Q24, a decrease of $10.431 million[32] - Net loss for 3Q24 was $(12.371) million, compared to $(14.208) million in 3Q23, an improvement of $1.837 million[34] - Non-GAAP adjusted loss per share improved from $(0.22) in 3Q23 to $(0.20) in 3Q24[34] - Shares outstanding increased from 49.3 million in 2Q24 to 51.6 million in 3Q24, an increase of 2.3 million shares[32]