Financial Data and Key Metrics Changes - Q3 2025 total revenue grew 34% year-on-year to $124.5 million, with subscription revenue increasing 34% to $96.3 million [26][31] - Core Life360 subscription revenue, excluding standalone hardware subscriptions, rose 37% [26] - Other revenue grew 82% year-on-year to $16.9 million, driven by strong performance in advertising [26][31] - Annualized monthly revenue reached $446.7 million, up 33% year-on-year [28] - Gross profit increased 39% year-on-year to $97.1 million, with gross margin at 78% compared to 75% a year ago [29] Business Line Data and Key Metrics Changes - Total paying circles grew 23% year-on-year to 2.7 million, with 170,000 net new additions [11] - Monthly active users (MAUs) increased by 3.7 million, growing 19% year-on-year, totaling nearly 92 million [10][11] - Standalone hardware revenue decreased 4% year-on-year to $11.3 million, despite a 15% increase in unit sales [27] Market Data and Key Metrics Changes - Paying circles outside the U.S. grew 29% year-on-year, with an 8% year-over-year increase in average revenue per paying circle (ARPPC) [12] - The company noted strong international momentum, particularly in the U.K., Canada, Australia, and New Zealand [12] Company Strategy and Development Direction - The company aims to expand its product offerings beyond family safety to include pet safety with the launch of Life360 Pet GPS [14][17] - The acquisition of Nativo is expected to accelerate the advertising business and enhance revenue streams [18][32] - The focus remains on organic growth driven by product innovation and brand awareness [8][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory for the remainder of 2025, raising full-year revenue guidance [35][36] - The company is committed to increasing the value delivered to members and expanding its reach through connected devices [13][14] - Management highlighted the importance of maintaining a strong core app experience while exploring new product opportunities [49] Other Important Information - The company reported a net income of $9.8 million for the quarter, up from $7 million in Q2 and $7.7 million in Q3 last year [30] - Adjusted EBITDA rose 174% year-on-year to $24.5 million, representing a 20% margin [31] Q&A Session Summary Question: Can you discuss the Nativo acquisition and its impact on the existing advertiser base? - Management views the Nativo acquisition as additive and expects it to accelerate growth with the technology and momentum it brings [38] Question: What is the revenue run rate of Nativo and its cost base for FY 2025? - Nativo's revenue run rate is roughly twice that of Life360, and it is expected to be adjusted EBITDA positive next year [42] Question: What factors will influence the rate of margin expansion? - Key factors include scale and the increasing mix of higher-margin revenue, particularly from advertising [46][47] Question: What are the top priorities for product development moving forward? - The focus is on enhancing the core app experience and making it more appealing to aging parents, with plans to introduce features in 2026 [49][85] Question: How is the Pet GPS launch performing in terms of adoption? - The launch has exceeded expectations, with strong initial demand primarily from existing members [54]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $43.9 million, down 1% year-over-year, but above the guidance range of $42.8 million to $43.6 million [34] - Subscription revenue was $42 million, flat year-over-year, also exceeding the guidance range of $40.8 million to $41.6 million [34] - Adjusted EBITDA reached a record $4.2 million, marking the ninth consecutive quarter of profitability, up 72% from $2.4 million in Q3 2024 [40] - Non-GAAP net profit was $2 million, an improvement of $2 million year-over-year [40] - Cash flow from operations was $9.3 million, consistent with forecasts for strong cash flow in the second half of the year [5] Business Line Data and Key Metrics Changes - The EE&T segment generated total revenue of $32.4 million, a slight increase year-over-year, with subscription revenue up 1% to $31.8 million [38] - The M&T segment saw total revenue of $11.5 million, down 4% year-over-year but up 3% sequentially, with subscription revenue also down 4% year-over-year [39] Market Data and Key Metrics Changes - New subscription bookings included 12 six-digit deals with notable new customers, indicating strong market interest [20] - The gross retention rate in EE&T remained strong, while M&T's gross retention rate improved sequentially [22] Company Strategy and Development Direction - The company announced the acquisition of ESOF.ai to enhance its AI capabilities and transition from a video company to a rich media-powered, AI-infused customer and employee experience company [6][9] - The strategic focus is on developing immersive virtual agents that will enhance customer and employee engagement through real-time video experiences [10][11] - The company aims to achieve double-digit revenue growth and a rule of 30 combination between revenue growth and adjusted EBITDA margin by 2028 or sooner [30][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming fourth quarter, expecting a sequential increase in total revenue for the first time this year [29] - The company anticipates continued strong cash flow and adjusted EBITDA growth, with a forecast for another record high in Q4 [45] - Management acknowledged challenges in customer projects that delayed revenue recognition but expects improvements in the fourth quarter [72][73] Other Important Information - The company repurchased 14.4 million shares from Goldman Sachs at a 25% discount, representing 9.2% of outstanding shares [18] - Following the share repurchase and ESOF acquisition, the company expects to end the year with approximately $60 million in gross cash [19] Q&A Session Summary Question: Thoughts on the investments for the new product and integration - Management indicated that the focus is on long-term strategic value rather than immediate returns, with a gradual rollout expected over the next year [51][52] Question: Signs of AI technology adoption affecting video content creation - Management noted increased interest in AI offerings like Genie and ContentLab, with several deals closed in Q3 and more expected [66][67] Question: Updates on revenue recognition delays with customers - Management clarified that delays were due to customer-related issues, not Kaltura's delivery, and expects resolution in Q4 [72][74]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $85.6 million, representing a 7% year-over-year increase and a 10% quarter-over-quarter increase, exceeding the midpoint of guidance [32] - Contribution XTAC totaled $53 million, up 12% year-over-year and 10% sequentially, reaching the high end of guidance [32] - Adjusted EBITDA for Q3 was $16 million, growing 9% year-over-year and 42% sequentially, with an adjusted EBITDA margin of 30% [38] Business Line Data and Key Metrics Changes - Excluding political ad spend from the prior year, Q3 revenue increased 19% year-over-year, and contribution XTAC increased 22% year-over-year on a pro forma basis [33] - CTV accounted for a record high of 46% of total platform spend, with nearly half running through Direct Access premium publishers [36] - Revenue attached to the Iris ID more than doubled sequentially versus the prior quarter, indicating strong demand for contextually targeted campaigns [15] Market Data and Key Metrics Changes - Spend across emerging digital channels, including CTV, streaming audio, and digital out of home, represented approximately 56% of total platform spend in Q3, up from 50% in 2024 and 43% in 2023 [36] - The majority of leading streaming services have joined the Direct Access program, enhancing the platform's capabilities [12] Company Strategy and Development Direction - The company aims to maintain its dominant position in the mid-market while expanding up-market with major U.S. advertisers and down-market to performance advertisers [23] - The launch of AI Decisioning is expected to enhance the self-service capabilities of the platform, making it more accessible for SMBs and direct-to-consumer e-commerce companies [29] - The partnership with Molson Coors highlights the company's ability to attract major U.S. brands seeking data-driven campaigns [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying performance of the business, with expectations for accelerating growth in 2026 driven by new client onboarding [44] - The company anticipates significant EBITDA margin expansion in 2026, supported by improved operational efficiencies and the integration of recent acquisitions [44] Other Important Information - The company ended Q3 with $161 million in cash and cash equivalents, no debt, and full access to a $75 million credit facility [39] - The share repurchase program has returned $59.6 million to shareholders since its launch, signaling confidence in long-term value [40] Q&A Session Summary Question: What is the difference with the third AI product launching in Q4? - Management indicated that AI Decisioning will complete the Viant AI suite, enabling full self-driving capabilities for ad campaigns, reducing the need for human intervention [51][52] Question: Is the 600 basis point headwind from a merger client a one-time issue? - Management clarified that the headwind is primarily from a seasonal client and will not significantly impact other quarters [48] Question: How does the company plan to grow awareness among SMB advertisers? - The strategy includes channel partnerships and a self-service sign-up flow to attract direct-to-consumer e-commerce companies [58][60] Question: What is the expected incremental spend from the Molson Coors partnership? - While specific figures cannot be disclosed, management expects the partnership to scale over time, contributing to the $250 million incremental spend pipeline [62] Question: How does the competitive environment look with companies like Amazon and Google? - Management noted that competition remains consistent, with Viant's objective buy-side approach differentiating it from competitors who have conflicts of interest [64][66]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported transaction volumes of $235 million, an increase of 43% year-over-year, and net revenues of $7.4 million, up 41% year-over-year [7][18] - Year-to-date revenues through September 30 were $22.7 million, reflecting a 48% increase over the same period in 2024, with total transaction volumes of $753 million, representing a 74% increase [18][19] - The company recorded a GAAP net income of $0.6 million in Q3 2025, compared to a net loss of $62.3 million in Q3 2024, primarily driven by a $10.2 million increase in the fair value of its Bitcoin investment treasury [19][20] Business Line Data and Key Metrics Changes - The company is experiencing organic growth, with significant contributions from new customers and deeper penetration into the existing customer base, particularly through its Bitcoin gift card and credit card offerings [18][21] - The upcoming Bitcoin Rewards credit card is expected to enhance customer acquisition and increase transaction volumes, with a waitlist exceeding 80,000 users [9][40] Market Data and Key Metrics Changes - The company is well-positioned to capture the growing demand for Bitcoin financial services, particularly among millennials who are expected to control nearly $80 trillion in wealth in the coming years [7][8] - The company has established partnerships with Visa and Stripe for its credit card, enhancing its credibility and distribution capabilities in the market [8][9] Company Strategy and Development Direction - The company aims to create a comprehensive ecosystem that integrates earning, saving, and spending in Bitcoin, with a focus on innovative financial products [14][15] - The strategy includes monitoring regulatory changes and exploring opportunities in loan products, retirement plans, and insurance offerings [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the growing adoption of Bitcoin and the company's unique position to meet this demand [6][8] - The company anticipates continued revenue growth driven by new product lines and increased marketing investments, particularly in Q4, which is historically the highest volume quarter [24][65] Other Important Information - The company currently holds 1,526 Bitcoin valued at approximately $154 million, representing a 53% increase in holdings since going public [14][22] - The company has a healthy balance sheet with cash and cash equivalents of $6.7 million and no unsecured debt [22] Q&A Session Summary Question: Can you share early data and interest regarding the Bitcoin gift card? - Management noted high excitement and healthy volume from the gift card rollout, with significant customer engagement expected during the holiday season [29][30] Question: What does the expansion of gift card locations look like? - The company is exploring various retail and promotional opportunities, including partnerships with sports venues and loyalty programs [33][34] Question: How is the demand for the credit card trending? - The waitlist for the credit card has surpassed 80,000, indicating strong interest and growth potential in this new product category [39][40] Question: How will customer acquisition and marketing spend change? - The gift card is becoming a successful customer acquisition tool, with negative acquisition costs, allowing the company to generate revenue while acquiring new customers [43][44] Question: Can you elaborate on the capital raise and strategic opportunities? - The company is utilizing a revolving credit facility to access the value of its Bitcoin without selling it, aligning with its long-term growth strategy [53][54] Question: What is the strategy for converting active accounts into verified users? - The upcoming credit card is expected to be a key driver in converting existing users into deeper product lines, enhancing overall engagement [78][80]

Financial Data and Key Metrics Changes - Revenue increased by 40% year-over-year to $146.8 million compared to $105.2 million in the prior-year period [14] - Net income surged to $23.9 million, a significant increase from $1.6 million in the prior-year period [15] - Adjusted EBITDA rose 1.6 times to $24.9 million from $9.6 million in the prior-year period [15] - Operating cash flow improved to $23.2 million from cash used of $12.9 million in the prior-year period [15] Business Line Data and Key Metrics Changes - Electric sales increased by 29% to $93.2 million compared to $72.1 million in the prior-year period, driven by favorable weather and higher energy demand [14] - Coal sales rose by 42% to $68.8 million from $48.3 million in the prior-year period, supported by increased shipments and favorable power markets [14] Market Data and Key Metrics Changes - The Hallador Power subsidiary experienced a more than 29% year-over-year revenue increase due to favorable summer weather and elevated natural gas prices [5] - The company expects to produce approximately 3.8 million tons of coal in 2025, having produced 3.1 million tons through the first nine months [11] Company Strategy and Development Direction - The company submitted an application to the MISO ERIS program to add 525 MW of gas generation at the Merom site, marking a strategic step to grow its generation portfolio [5] - Hallador is transitioning from a commodity-focused coal producer to a vertically integrated independent power producer, leveraging the energy transition to capture expanding margins in power markets [11] - The company is evaluating strategic opportunities to acquire additional dispatchable generation assets to diversify its portfolio and enhance growth [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong market signals for their product offerings and the potential for long-term agreements with data center developers and load-serving entities [7] - The evolving energy landscape, characterized by the retirement of dispatchable generators in favor of renewables, is creating opportunities for reliable baseload generation [8] - Management does not expect Q4 performance to match the exceptional results of Q3, anticipating a return to more typical conditions unless extreme weather occurs [22] Other Important Information - The company executed a $20 million prepaid forward power sales contract, which is a key component of its commercial strategy [6] - Total forward energy and capacity sales position was $571.7 million as of September 30, 2025, down from $685.7 million at the end of 2024 [16] Q&A Session Summary Question: What are the main milestones for the potential capacity expansion? - Management indicated that the MISO expedited process will determine the timeline for reviewing their application, with updates expected in the coming months [20][21] Question: How has Q4 started compared to Q3? - Management noted that Q4 is expected to resemble Q4 of 2024, with no significant catalysts anticipated to drive performance like Q3 [22] Question: Can you provide initial economics on the 525 MW expansion? - Management is still negotiating equipment and has not released detailed economics but is encouraged by market signals indicating a need for more capacity [27][28] Question: What impact might the recent government funding for coal have? - Management believes that government funding could be beneficial for the industry and that Hallador may have qualifying projects [30] Question: Are you seeing opportunities for M&A in the coal space? - Management expressed a preference for coal-related acquisitions, noting that such transactions are bespoke and take time to develop [37] Question: What is the status of discussions with potential customers? - Management confirmed ongoing negotiations with multiple parties, including utilities and data center developers, with increased interest noted [43][44]

Financial Data and Key Metrics Changes - CoreWeave reported Q3 revenue of $1.4 billion, representing a 134% year-over-year increase [5][23] - Revenue backlog reached over $55 billion at the end of Q3, nearly doubling from Q2 [5][23] - Adjusted operating income for Q3 was $217 million, with an adjusted operating margin of 16% [24] - Net loss for Q3 was $110 million, a significant improvement from a $360 million loss in Q3 of 2024 [25] - Adjusted EBITDA for Q3 was $838 million, more than doubling from $379 million in Q3 of 2024, with an adjusted EBITDA margin of 61% [25] Business Line Data and Key Metrics Changes - CoreWeave expanded its active power footprint by 120 MW sequentially to approximately 590 MW [6][7] - Contracted power capacity grew over 600 MW to 2.9 GW, with more than 1 GW of contracted capacity expected to be sold to customers in the next 12 to 24 months [7][12] - The number of customers exceeding $100 million in revenue over the last 12 months tripled year-over-year, indicating a diversification of the revenue base [8] Market Data and Key Metrics Changes - More than 60% of CoreWeave's revenue backlog is tied to investment-grade customers, down from approximately 85% at the beginning of the year [23][81] - No single customer represents more than approximately 35% of the revenue backlog, a decrease from about 50% last quarter [23][81] Company Strategy and Development Direction - CoreWeave aims to scale aggressively in a supply-constrained environment, focusing on AI cloud services [5][20] - The company is diversifying its customer base and expanding its product offerings, including new acquisitions to enhance its capabilities [17][20] - CoreWeave is also entering the public sector with the launch of CoreWeave Federal to serve U.S. government agencies [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory, despite current supply chain challenges [22][32] - The company anticipates continued robust demand for its services, with expectations for 2025 revenue in the range of $5.05-$5.15 billion [30] - Management noted that delays from a third-party data center provider would impact Q4 results but are expected to be resolved by Q1 of the following year [30][54] Other Important Information - CoreWeave's capital expenditures in Q3 totaled $1.9 billion, lower than anticipated due to delays [25][26] - The company has secured $14 billion in debt and equity transactions year-to-date to support its growth [29] - CoreWeave's new storage product, AI Object Storage, has already surpassed $100 million in annual recurring revenue (ARR) in Q3 [16] Q&A Session Summary Question: Can you speak to the situation relating to the third-party provider? - Management acknowledged systemic challenges in supply chains affecting infrastructure delivery but emphasized efforts to diversify data center providers and manage delays [36][37] Question: How should we think about your infrastructure and its fungibility? - Management confirmed that the infrastructure is designed to be fungible, allowing for flexibility in usage across different customers and applications [41][42] Question: How far are we from reaching a point where disruptions should not affect revenue outlook? - Management indicated that as the company scales, the impact of individual delays will become less significant, with expectations for smoother operations as capacity increases [47][48] Question: What is the uniqueness of CoreWeave's value proposition in the future? - Management highlighted the company's focus on delivering customized infrastructure and software solutions that differentiate it from competitors [49][50] Question: Can you clarify the impact of CapEx reductions? - Management confirmed that the CapEx reduction is primarily due to delays from a single data center provider, with most of the impact expected to be resolved in Q1 [64][65] Question: How do you think about funding paths for CapEx? - Management stated that they will explore various financing options, including leasing, to ensure cost-effective scaling and service delivery [68][69]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $76.3 million, flat year-over-year, exceeding guidance [7][15] - Adjusted EBITDA for Q3 2025 was $12 million, up 64% compared to Q3 2024, exceeding guidance of approximately $10.5 million [17] - Adjusted gross margin increased to 53%, up approximately 510 basis points year-over-year [16] Business Line Data and Key Metrics Changes - Technology segment revenue was $52.1 million, representing a 7% year-over-year growth driven by recurring revenue from new and acquired clients [7][15] - Professional services revenue for Q3 2025 was $24.3 million, a 12% decline compared to Q3 2024, primarily due to exiting less profitable contracts [15][16] - Adjusted technology gross margin was 68%, an increase of approximately 330 basis points year-over-year [16] Market Data and Key Metrics Changes - The company anticipates approximately 30 net new platform client additions for 2025, with dollar-based retention expected to be in the low 90% [8][14] - The market remains dynamic, with ongoing financial and workforce pressures impacting client operations [10][14] Company Strategy and Development Direction - The company is focused on solutions with proven ROI, aiming to maintain a strong pipeline while managing costs and making targeted investments [8][14] - Recent leadership appointments aim to support long-term vision and improve performance, reflecting a commitment to building an agile organization [10] - The company plans to balance growth, revenue mix, and free cash flow progression while prioritizing existing capabilities and recently acquired assets [15][21] Management's Comments on Operating Environment and Future Outlook - Management expects revenue performance in 2026 to be a few points lower than in 2025, driven by dollar-based retention pressures and lower net new client counts [14] - The company is optimistic about improving adjusted EBITDA in 2026, reflecting ongoing strategic focus and cost management [14][21] - Management emphasizes the importance of meeting clients where they are, providing flexibility in migration timelines to enhance client experience and retention [12][28] Other Important Information - The company is committed to realizing a strong return on acquisition investments and does not anticipate pursuing additional acquisitions in the near to medium term [15] - The company is making progress on Ignite migration initiatives, with approximately two-thirds of DOS clients expected to migrate by the end of 2025 [11][12] Q&A Session Summary Question: What is driving the longer timeline for Ignite migration? - Management noted that clients desire to stay on DOS longer due to its current value, and flexibility is being provided to meet client needs [26][27] Question: How does the sequential decline in tech revenue relate to dollar-based retention? - Management explained that the decline is influenced by DOS to Ignite headwinds and growth in the apps layer, with a mix of factors affecting revenue [32][33] Question: What is the value of one-time revenues and the outlook for positive revenue growth? - Management indicated that one-time revenues are becoming more common in professional services, and the pipeline remains robust, with expectations for growth in mid-2026 [37][38] Question: How are competing priorities affecting client decisions? - Management acknowledged that clients are focused on data quality and may prefer to leverage existing capabilities before migrating to Ignite [52][53] Question: What are the growth rates for Ignite versus DOS customers? - Management highlighted a shift in approach to provide flexibility for clients on DOS, allowing for growth opportunities in the apps layer [64][66]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $76.3 million, flat year-over-year, exceeding guidance [7][15] - Adjusted EBITDA for Q3 2025 was $12 million, up 64% compared to Q3 2024, and exceeding guidance of approximately $10.5 million [17] - Adjusted gross margin increased to 53%, up approximately 510 basis points year-over-year [17] - Cash, cash equivalents, and short-term investments decreased to $92 million from $392 million at year-end 2024 [17] Business Line Data and Key Metrics Changes - Technology segment revenue was $52.1 million, representing a 7% year-over-year growth driven by recurring revenue from new and acquired clients [7][15] - Professional services revenue for Q3 2025 was $24.3 million, a 12% decline compared to Q3 2024, primarily due to exiting less profitable contracts [15][17] - Adjusted technology gross margin was 68%, an increase of approximately 330 basis points year-over-year [16] Market Data and Key Metrics Changes - The company anticipates approximately 30 net new platform client additions for 2025, with dollar-based retention expected to be in the low 90% [8][14] - The market remains dynamic, with ongoing financial and workforce pressures impacting client operations [10] Company Strategy and Development Direction - The company is focused on solutions with proven ROI and is committed to delivering meaningful results while maintaining a strong pipeline [8][10] - The leadership team has been strengthened to support long-term vision and improve performance, with recent key appointments [10] - The company is prioritizing areas that will sustain technology gross margin expansion and enhance R&D efficiency [21] Management's Comments on Operating Environment and Future Outlook - Management expects revenue performance in 2026 to be a few points lower than in 2025, driven by dollar-based retention pressures and lower net new client counts [14] - The company is taking a measured approach to setting expectations and will continue to provide updates as the market evolves [14] - Management remains optimistic about the potential for growth in 2026, focusing on cost management and operational efficiency [40][72] Other Important Information - The company is not anticipating pursuing additional acquisitions in the near to medium term, focusing instead on driving growth and profitability from existing capabilities [15] - The Ignite migration initiatives are on track, with approximately two-thirds of DOS clients expected to migrate by the end of 2025 [11][12] Q&A Session Summary Question: What is driving the longer timeline for Ignite migration? - Management noted that some clients prefer to stay on DOS due to its current value and flexibility, which has been positively received [26][28] Question: How does the sequential decline in tech revenue relate to dollar-based retention? - Management explained that the decline is influenced by DOS to Ignite headwinds and the growth in the apps layer, with a mix of moving parts affecting revenue [32][33] Question: What is the value of one-time revenues and the outlook for positive revenue growth? - Management indicated that one-time revenues are becoming more common in professional services, and they expect a robust pipeline to support growth, potentially returning to positive growth by mid-2026 [37][39] Question: How are margins expected to trend into 2026? - Management expressed confidence in EBITDA growth, with Q4 serving as a useful guide for 2026, while acknowledging some one-time items affecting Q4 results [78] Question: What areas are being considered for targeted market expansion? - Management highlighted specific use case areas in cost management and ambulatory offerings where client demand is strong, indicating a focus on leveraging new technologies and AI capabilities [83]

Financial Data and Key Metrics Changes - In Q3 2025, the company achieved revenue of $77.7 million, reflecting a 5% normalized year-over-year growth, while gross profit was $57.8 million, with a 1% increase on a normalized basis [13][14] - Adjusted EBITDA was $31.2 million, representing approximately 40% adjusted EBITDA margins, and free cash flow was $20.8 million, resulting in a 67% free cash flow conversion [15][16] - The company reported a gross profit margin compression of approximately 3.4% year-over-year due to client losses and increased volume discounts [14][15] Business Line Data and Key Metrics Changes - In the consumer payments segment, gross profit increased by 1% year-over-year, with a single-digit increase when excluding the impact of client losses [14][15] - The business payments segment saw a normalized gross profit increase of 12% year-over-year, with over 20% growth when excluding the impact of client losses [10][15] - The supplier network in the business payments segment grew to over 540,000 suppliers, a 60% year-over-year increase [11] Market Data and Key Metrics Changes - The company added five new software partners in Q3, bringing the total partnership network to 291 across consumer and business payment segments [6][11] - The company is focusing on increasing TotalPay adoption and has seen double-digit growth in its accounts payable platform, particularly in healthcare and hospitality verticals [10][11] Company Strategy and Development Direction - The core growth strategy focuses on optimizing digital payment flows and embedding payment technology into software platforms [4][5] - The company is investing in AI tools and automation to enhance client onboarding and improve operational efficiency [5][6] - Capital allocation priorities include organic growth investments, managing CapEx, and maintaining a strong balance sheet while being open to M&A opportunities [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to sustainable growth as they exit 2025, with expectations of 6%-8% normalized gross profit growth in Q4 [17][18] - The company anticipates ongoing margin pressures due to a mix of larger clients with volume discounts and higher transaction values [18] - Management highlighted a stable consumer environment, with some softness noted in the automotive sector [36] Other Important Information - The company repurchased approximately 3% of its outstanding shares in August, totaling $38 million year-to-date, and reduced debt by retiring $73.5 million of convertible notes [12][16] - As of September 30, the company had approximately $96 million in cash and access to $250 million in undrawn revolver capacity, totaling $346 million in liquidity [16] Q&A Session Summary Question: Free cash flow outlook into 2026 - Management expects free cash flow conversion to be in the upper 50s for Q4 2025, with a strong 67% conversion in Q3 [22][23] Question: Political media spend headwind - The headwind from political media contributions in Q4 last year was $4.6 million in gross profit, with an annual impact of approximately $11.75 million [23] Question: Visa Commercial Enhanced Data Program - Management discussed the transition from level two to level three data requirements, which will impact interchange rates and associated fees [28][31] Question: Consumer payments softness - Management noted stable consumer conditions overall but identified softness in the automotive-to-used car segment [36] Question: M&A pipeline and targets - Management indicated a healthy pipeline for M&A opportunities in both consumer and B2B segments, while also focusing on capital allocation priorities [38]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $163.2 million, an increase of $10.1 million or 7% from the prior year period [22] - Net income available to common shareholders was $5.6 million, nearly seven times higher than the $700,000 in the prior year [23] - EPS increased significantly to $0.30 per diluted share in Q3 2025 versus $0.04 in the prior year [23] - Adjusted EBITDA increased 60% to $20.7 million, with an adjusted EBITDA margin of 13% compared to 8% in the prior year [23] Business Line Data and Key Metrics Changes - At APUS, Q3 revenue increased to $83.1 million, an 8% increase compared to the prior year, driven by an 8% increase in net course registrations [24] - Rasmussen's Q3 revenue was $60.8 million, a 16% increase fueled by a 12% increase in on-ground enrollment and an 11% increase in online enrollment [24] - Hondros College of Nursing's Q3 revenue increased 19% to $18.4 million, with total enrollment up 18% to approximately 3,700 students [25] Market Data and Key Metrics Changes - Registrations at APUS increased 8% year-over-year, while enrollments at Rasmussen increased 10% compared to Q3 2024 [9] - On-ground enrollments at Rasmussen are accelerating, contributing to the overall enrollment growth [9] - The government shutdown has muted military enrollments at APUS for October and November, but there are signs of recovery with tuition assistance funds being authorized [15][16] Company Strategy and Development Direction - The company is focused on simplifying operations and has received HLC approval for the combination of its institutions, with a new application submitted to the U.S. Department of Education [10][11] - The sale of Graduate School USA allows the company to concentrate on core degree-granting businesses, particularly in healthcare and military-affiliated education [10] - The company aims to leverage existing capacity and improve financial results through strategic enrollment growth and operational efficiencies [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the government shutdown and maintain enrollment momentum [17] - The company anticipates that the impact of the government shutdown will be temporary, with expectations for a return to normal enrollment levels [81] - Management remains optimistic about long-term growth potential, particularly in nursing and healthcare education sectors [32] Other Important Information - The company has improved its cash position, with unrestricted cash and equivalents totaling $193.1 million as of September 30, 2025 [11] - The recent redemption of preferred equity is expected to save approximately $6 million annually, enhancing financial flexibility [12] - The company plans to provide a longer-term view of growth strategies and financial outlook at the upcoming Investor Day [18] Q&A Session Summary Question: Plans for driving re-enrollments at APUS - Management noted that military branches are utilizing tuition assistance funds, leading to increased registrations in December despite the government shutdown [36] Question: Impact of the new process for institution integration - Management confirmed commitment to the integration and stated that the new process is procedural, with expectations for implementation in Q3 2026 [39][40] Question: Fourth quarter guidance assumptions - Management indicated a slowdown in October registrations but expects a return to normal trajectory in December [46] Question: Cost-saving measures and their permanence - Management discussed temporary and permanent reductions in variable costs, emphasizing that these measures will not harm revenue [50] Question: Trends in nursing program demand - Management reported strong growth in nursing enrollments, driven by attractive compensation and job availability in the sector [53] Question: Changes in student demographics at Rasmussen - Management highlighted efforts to expand marketing reach to both ADN and BSN students, with a noted increase in BSN enrollments [111]