Financial Data and Key Metrics Changes - For Q2 2025, the company reported net product revenue of $33.6 million, representing a 10% increase over Q1 2025 [7][21] - The cumulative net revenue for the last twelve months reached $113.1 million, exceeding initial expectations [6][14] - The company provided full-year 2025 net product revenue guidance of $140 million to $150 million, indicating approximately 150% year-over-year growth [22] Business Line Data and Key Metrics Changes - The company achieved over 1,000 prescriptions in Q2 for the first time, with a 15% quarter-over-quarter growth in prescriptions [7][13] - The growth in prescriptions was driven by both the number of prescribing accounts and the number of patients per account [13][19] - The company noted that over 60% of prescribing accounts have initiated multiple patients on Ogenda, indicating strong physician confidence [19] Market Data and Key Metrics Changes - The company reported that over 95% of patients on Ogenda are covered by payers, with less than 5% receiving free drug [14] - Approximately 90% of patients received approval upon initial submission, which helps reduce administrative burdens [14] Company Strategy and Development Direction - The company aims to establish Ogenda as the standard of care in second-line plus PLGG and is focused on expanding its commercial presence [8][11] - The company is advancing its PTK7 targeted ADC Day 301 through the dose escalation portion of its Phase 1a trial [11][57] - The company has discontinued investment in the VRK1 program to focus on more promising opportunities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued adoption of Ogenda, citing predictable trends in new patient starts and persistence on therapy [30] - The company remains well-capitalized with $453 million in cash and no debt, allowing it to execute its plans without reliance on capital markets [24] Other Important Information - The company welcomed a new Head of Research and Development, Mike Baskinsells, who brings extensive experience in oncology [10] - The company is actively generating additional data and publications to enhance the Ogenda value proposition [20] Q&A Session Summary Question: What levers will you focus on to increase growth rate given the 2025 guidance? - Management highlighted continued adoption through new patient starts and persistence on therapy as critical variables for achieving revenue guidance [30] Question: What proportion of Q2 scripts are new versus continuing patients? - Management noted that the two-year data has positively impacted growth, leading to an uptick in new patient starts [34][35] Question: What are you seeing regarding durability or persistence now that you are one year into launch? - Management indicated that physician intent is to keep patients on treatment for two years, and the three-year data will provide more insights [40][42] Question: Is the distribution of total scripts attributed to repeat versus new prescriptions holding constant? - Management stated that while they haven't calculated the exact ratio, they continue to focus on driving new patient starts [44][46] Question: Can you provide additional color on your guidance in terms of new additions versus discontinuations? - Management emphasized the importance of continued persistence and new patient starts in meeting their guidance range [53]

Financial Data and Key Metrics Changes - For Q2 2025, net revenue from continuing operations was $10.8 million, representing a 10% increase over the prior year period [24] - Year-to-date revenues for the first six months totaled $22.6 million, a 23% increase compared to the same period last year [11][24] - Adjusted earnings for Q2 were $400,000, and for the first half of the year, adjusted earnings were $2.8 million or $0.18 per share, significantly up from the previous year [11][25] - The company generated $4.7 million in cash flow from operations during the first half of 2025 [11] Business Line Data and Key Metrics Changes - Revenue by product for Q2 included $2.8 million for Cristalose, $3.1 million for Sancuso, $2.7 million for Vibativ, and $1.6 million for Caldolor [24] - Year-to-date product revenue totaled $6.2 million for Cristalose, $4.1 million for Vibativ, $5.4 million for Sancuso, and $2.9 million for Caldolor [24] Market Data and Key Metrics Changes - The company announced the approval of Vibativ in China, providing access to the world's second-largest pharmaceutical market [10] - A partnership with Tabuk Pharmaceuticals was established to introduce Vibativ into the Middle East, with shipments already initiated [10] Company Strategy and Development Direction - The company is focused on building a portfolio of FDA-approved brands with strong safety and efficacy profiles [31] - There is an emphasis on expanding international contributions and pursuing new opportunities through the addition of new products [31] - The company is dedicated to addressing unmet medical needs through its clinical pipeline, particularly with the ifetroban product candidate [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future, citing positive developments in clinical studies and product approvals [8][31] - The company is preparing for a meeting with the FDA to discuss the clinical program for ifetroban, which is seen as a potential treatment for DMD cardiomyopathy [9][31] Other Important Information - The company holds $68 million in total assets, including $16 million in cash and cash equivalents, with liabilities totaling $40 million [28] - Cumberland continues to hold over $52 million in tax net operating loss carryforwards, primarily from prior stock option exercises [29] Q&A Session Summary - No questions were raised during the Q&A session, and management expressed willingness to engage in private discussions with shareholders if desired [34][35]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $293 million, representing a 32% year-over-year increase [4][27] - Non-GAAP operating margin was 14%, with free cash flow of $59 million [27][30] - Non-GAAP gross margin was 76%, down approximately two points year-over-year due to increased infrastructure costs and SMS product growth [30][34] Business Line Data and Key Metrics Changes - The company ended Q2 with over 176,000 customers, a 17% year-over-year increase [28] - The number of customers with over $50,000 in ARR grew by 38% year-over-year, reaching 3,291 [29] - The marketing analytics product gained nearly 2,000 customers, demonstrating strong early adoption [13][28] Market Data and Key Metrics Changes - International revenue grew by over 42% year-over-year, with notable growth in EMEA (47%) and APAC [21][29] - New ARR in Norway, Germany, and Spain grew over 90% year-over-year [90] Company Strategy and Development Direction - The company is focused on sustainable, efficient long-term growth, expanding internationally and moving upmarket [5][35] - Klaviyo aims to unify marketing and service through an integrated data platform, addressing market gaps in consumer brand interactions [6][12] - The introduction of AI-driven products is a key part of the strategy, with a focus on enhancing customer experiences and operational efficiencies [14][18] Management's Comments on Operating Environment and Future Outlook - Management noted that Klaviyo is more critical than ever for driving customer growth, with no significant impact from the macroeconomic environment in Q2 [30] - The company is optimistic about future growth, raising full-year guidance based on strong first-half performance and customer demand [34][35] Other Important Information - The company announced leadership changes, including the appointment of a new Chief Information Officer and the retirement of the President [24][25] - Klaviyo is recognized as a leader in AI-enabled marketing platforms, highlighting its competitive positioning in the market [15] Q&A Session Summary Question: Progress in the mid-market - Management highlighted strong customer interest in Klaviyo's integrated data platform and the trend towards autonomous CRM solutions [39][40] Question: Service suite opportunity sizing - Management believes the service suite market is comparable in size to marketing automation and is seeing interest across all customer segments [45][46] Question: Revenue capture from cross-selling - Management indicated that the service products could lead to significant revenue expansion, with a focus on delivering better customer engagement [53][54] Question: International growth and language rollout - Management confirmed ongoing language rollouts and highlighted strong growth in specific international markets [90][91] Question: Evolving go-to-market strategy - Management noted that the expanded product portfolio is opening new conversations with senior decision-makers across organizations [78][80]

Financial Data and Key Metrics Changes - The company reported adjusted net income of $4.7 million and adjusted earnings of $0.29 per share for Q2 2025, representing an increase of $400,000 or 0.02 per share compared to the same period in the prior year [5][14] - For the first six months of 2025, adjusted net income was $33.1 million or $2.3 per share, an increase of $1.6 million or 0.07 per share compared to the same period in 2024 [6][14] Business Line Data and Key Metrics Changes - Electric adjusted gross margin for the six months ended June 30, 2025, was $53.3 million, an increase of $1.3 million or 2.5% compared to the same period in 2024, driven by higher distribution rates and customer growth [15] - Gas adjusted gross margin for the same period was $108.1 million, an increase of $15.8 million or approximately 17.1% compared to the same period in 2024, attributed to higher rates, customer growth, and a return to normal winter weather [16] Market Data and Key Metrics Changes - The company added approximately 9,360 new gas customers, including 8,800 from the acquisition of Bangor Natural Gas, compared to the same period in 2024 [16] - Approximately 55% of the company's gas customers are under decoupled rates as of June 30, 2025 [16] Company Strategy and Development Direction - The company is optimistic about the ongoing regulatory reviews of the Maine Natural Gas and Aquarion Water transactions, expecting to close these acquisitions by 2025 [7][8] - The company aims to accelerate rate base growth to approximately 10% annually through 2029, supporting earnings growth near the top end of its guidance range [9] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed a strong financial outlook and long-term guidance for earnings growth, dividend growth, and rate base growth [6][26] - The company sees increasing support for natural gas in New England as a means to reduce energy supply volatility and improve affordability for customers [10][11] Other Important Information - The company has initiated a $50 million at-the-market equity program and issued $32 million in senior unsecured notes for Bangor Natural Gas [23] - The current five-year capital budget totals approximately $1 billion, which is 46% higher than the prior five years, reflecting the investment plan for existing operations [24] Q&A Session Summary Question: Will the slight negative results in Q3 affect the dividend approach for the third quarter? - Management confirmed that the slight change in quarterly distribution for the second half of the year will not affect the company's approach to 2025 dividends [30][32]

Financial Data and Key Metrics Changes - The company reported core FFO per share of $0.55 for Q2 2025, an 11% decline from the prior year, primarily due to decreased same store NOI and increased interest expense [13][17]. - Same store revenues declined by 3%, driven by a lower average occupancy of 240 basis points and a year-over-year decline in average revenue per square foot of 30 basis points [13][15]. - Same store NOI growth was negative 6.1% for the quarter, with expense growth at 4.6%, mainly due to property taxes, marketing, repair and maintenance, and utilities [13][15]. Business Line Data and Key Metrics Changes - The company sold 10 properties in non-core markets and acquired one property in Texas and an annex in California, focusing on improving balance sheet metrics [7][8]. - The occupancy rate increased by 140 basis points sequentially during Q2 to finish at 85%, with further improvement to 85.3% in July [10]. - RevPath improved for five consecutive months, with the year-over-year delta decreasing from 4.2% in February to 1.6% in July [11]. Market Data and Key Metrics Changes - The company noted continued pressure from new supply in several markets, which has impacted performance more than expected [6]. - The housing market remains challenging, with no meaningful improvement in macroeconomic conditions affecting occupancy and revenue [5][6]. - The company expects new supply to decline over the next few years, supporting an improving supply-demand backdrop [9]. Company Strategy and Development Direction - The company is focused on improving its portfolio and occupancy position through increased marketing spend and the use of concessions [9]. - Management remains confident in the outlook for NSA, expecting to realize full benefits from the pro internalization as the housing market recovers [8][9]. - The company is being disciplined in capital allocation, balancing share repurchases with potential acquisitions [26][27]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the elevated use of concessions during the quarter was a near-term drag on revenues [7]. - The company is optimistic about the potential for recovery in the housing market, particularly in Sunbelt and suburban markets [9]. - Management believes they have hit bottom in fundamentals and are starting to see positive trends operationally [10]. Other Important Information - The company has ample liquidity with no significant debt maturities until 2026, maintaining a revolver balance of $400 million [16]. - The adjusted guidance for 2025 includes same store revenue growth of negative 2% to 3% and core FFO per share of $2.17 to $2.23 [17]. Q&A Session Summary Question: Can you walk through the scenarios for the updated guidance? - Management explained that the revised guidance is primarily anchored to same store revenue growth, with expectations of seasonal occupancy trends and the impact of higher discounts and concessions [20][21]. Question: How are you thinking about share repurchases? - Management views the current stock price as attractive and plans to balance share repurchases with capital allocation for acquisitions [26][27]. Question: How is the ECRI strategy performing in light of market pressures? - Management reported no significant changes in the ECRI program and noted that they are adjusting their approach based on customer behavior and churn [31][32]. Question: What is the competitive landscape like in your markets? - Management indicated that new supply has likely peaked in many markets, leading to more stability in asking rents and occupancy levels [51][52]. Question: Can you elaborate on the green shoots in your new marketing strategy? - Management highlighted improvements in visibility scores and top-of-funnel demand due to increased marketing spend and rebranding efforts [55][56]. Question: What are the challenges with the pro internalization? - Management noted that challenges are more market-driven rather than specific to individual pro properties, with some markets being particularly competitive [90][91]. Question: How many properties are earmarked for sale? - Management confirmed they have identified properties for potential sale and are evaluating strategies for reinvestment in the portfolio [96][97].

Financial Data and Key Metrics Changes - The company reported normalized FFO per share of $0.37 and normalized AFFO per share of $0.38, representing a 6% improvement over the same period in 2024 [20][22] - Total normalized FFO and normalized AFFO for the quarter were $89.2 million and $91.6 million respectively, reflecting strong sequential growth from increased NOI [20][22] - The net debt to adjusted EBITDA ratio was five times as of June 30, 2025, a decrease of 0.19 times from March 31, 2025 [24][26] Business Line Data and Key Metrics Changes - The managed senior housing portfolio contributed nearly 21% of total annualized cash NOI, with cash NOI for the quarter growing 17.1% year over year in the same store portfolio [14][18] - Cash rental income from the triple net portfolio increased by $2.3 million from the first quarter, driven by a $1.4 million increase in percentage rents [20][21] - The occupancy rate in the same store portfolio was 86% compared to 84.6% in 2024, with cash NOI growth expected to be in the low to mid-teens for the same store managed senior housing portfolio [16][24] Market Data and Key Metrics Changes - The average Medicaid rate increase is expected to be around 3.5%, with the top five skilled nursing tenants averaging just above 5% [9][12] - The Medicare market saw an upward revision from 2.8% to 3.2%, which is considered unusual but positive for the company [9][12] - The Canadian portfolio's RevPAR increased by 6.8% year over year, with occupancy above 90% for over five quarters [17][18] Company Strategy and Development Direction - The company aims to increase its SHOP (Senior Housing Operating Portfolio) from 20% to 30% by 2026, requiring approximately $1 billion in investments [11][12] - The focus is on acquiring well-performing newer senior housing communities that cater to the baby boomer generation, as the supply-demand equation remains constrained [15][18] - The company is not interested in building a loan book or engaging in complex joint venture structures, preferring straightforward traditional deals [36][104] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the investment pipeline, targeting $4.5 billion in investments for the year, with a strong deal flow expected to continue [11][70] - The company noted that the operational recovery in skilled nursing and senior housing has allowed for robust pricing, despite some challenges in the market [46][92] - Management remains optimistic about future occupancy and NOI growth, anticipating improvements as the transition from the holiday portfolio stabilizes [65][66] Other Important Information - The company declared a quarterly cash dividend of $0.30 per share, representing a payout of 79% of the second quarter normalized AFFO per share [27][28] - The company has ample liquidity of approximately $1.2 billion, consisting of unrestricted cash and available borrowings [27][26] Q&A Session Summary Question: Investment guidance and pipeline - Management indicated confidence in reaching the $400 million to $500 million investment range for the year, depending on timing [30][31] Question: Same store SHOP NOI growth - Management noted that the same store SHOP NOI growth is running at the high end of expectations, with hopes for upside [38][40] Question: Skilled nursing opportunities - Management clarified that while pricing is not an issue, the focus is on finding quality assets in the right markets [32][34] Question: Holiday transition impact - Management explained that the transition of holiday assets has had an impact on occupancy and NOI, but they expect improvements moving forward [44][65] Question: Labor market conditions - Management reported wage increases of around 4% across both skilled nursing and senior housing portfolios, with no significant labor market issues identified [96][99] Question: Operator selection criteria - Management emphasized the importance of understanding operators' outcomes and their willingness to grow as key selection criteria for new operators [103][104]

Financial Data and Key Metrics Changes - The company reported core FFO per share of $0.55 for Q2 2025, an 11% decline from the prior year, primarily due to decreased same store NOI and increased interest expense [13] - Same store revenues declined by 3%, driven by a lower average occupancy of 240 basis points and a year-over-year decline in average revenue per square foot of 30 basis points [13] - Expense growth was 4.6% in Q2, with property taxes, marketing, repair and maintenance, and utilities being the main drivers [14] Business Line Data and Key Metrics Changes - Same store NOI growth was negative 6.1%, reflecting the challenges faced in the current operating environment [14] - The company sold 10 properties in non-core markets and acquired one property in Texas, along with an annex in California [7][8] - RevPath improved for five consecutive months, with the year-over-year delta decreasing from 4.2% in February to 1.6% in July [11] Market Data and Key Metrics Changes - Occupancy increased by 140 basis points sequentially during Q2 to finish at 85%, with further improvement to 85.3% in July [10] - The year-over-year occupancy decline narrowed to 150 basis points in July from 220 basis points in June [10] - The company noted that new supply is projected to decline over the next few years, supporting an improving supply-demand backdrop [9] Company Strategy and Development Direction - The company is focused on improving its balance sheet metrics and remains disciplined in capital use, expecting to be a net seller of assets for the year [8][15] - Increased marketing spend and the use of concessions are part of the strategy to improve portfolio performance and occupancy [9] - The company is optimistic about the long-term outlook, particularly as the housing market recovers and new supply declines [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that macroeconomic conditions have not improved meaningfully, impacting occupancy and revenue expectations [6] - The elevated use of concessions during the quarter was a near-term drag on revenues, but management believes these actions are necessary given the current environment [7] - Management expressed confidence in the outlook for NSA, expecting to realize benefits from pro internalization and improved market conditions [8] Other Important Information - The company has ample liquidity with no significant debt maturities until 2026 and a current revolver balance of $400 million [15] - Adjusted guidance for 2025 includes same store revenue growth of negative 2% to 3% and core FFO per share of $2.17 to $2.23 [16] Q&A Session Summary Question: Can you walk through the scenarios underpinning the updated guidance? - Management explained that the revised guidance reflects expectations of occupancy trends and seasonal declines, with less dependency on macro conditions compared to earlier in the year [20][22] Question: How are you thinking about share repurchases given current share prices? - Management indicated that share repurchases are considered attractive but will be balanced with capital allocation decisions and maintaining balance sheet metrics [24] Question: How is the ECRI strategy performing in light of market pressures? - Management reported no significant changes in the ECRI program and noted that they are adjusting risk scores based on customer behavior [29][30] Question: What is the current state of your marketing strategy and its impact? - Management highlighted improvements in visibility scores and increased top-of-funnel demand due to enhanced marketing efforts and rebranding [56][78] Question: Can you elaborate on the challenges faced during the pro internalization? - Management noted that challenges are more market-driven rather than specific to individual properties, with some markets being particularly competitive [88] Question: What is the outlook for property dispositions and acquisitions? - Management confirmed that they have identified properties for sale and are being disciplined in capital allocation, focusing on optimizing existing portfolio performance [92][106]

Financial Data and Key Metrics Changes - Westlake Partners reported a net income of $15 million or $0.41 per unit for Q2 2025, which is consistent with Q2 2024 net income [6][8] - Consolidated net income, including OpCo's earnings, was $86 million, benefiting from a $14 million protection from the ethylene sales agreement [7][8] - Distributable cash flow decreased to $15 million or $0.43 per unit, down by $2 million compared to 2024 due to higher maintenance capital expenditures [8][9] - The partnership maintained a strong cash balance of $81 million and a long-term debt of $400 million, with a consolidated leverage ratio of approximately one time [9][10] Business Line Data and Key Metrics Changes - The stability of cash flow is attributed to the fixed margin ethylene sales agreement, which minimizes market volatility and production risks [6][12] - The successful completion of the PetroR1 turnaround positions the partnership for solid earnings and cash flows in the future [11][12] Market Data and Key Metrics Changes - Global industrial and manufacturing activity has been soft in 2025, impacting the global chemical industry [11] - The ethylene sales agreement provides a predictable fee-based cash flow structure, insulating the partnership from market fluctuations [12] Company Strategy and Development Direction - The company plans to evaluate growth opportunities through four levers: increasing ownership interest in OpCo, acquiring other qualified income streams, organic growth through facility expansions, and negotiating higher fixed margins in the ethylene sales agreement [12] - The focus remains on providing long-term value and distributions to unitholders while maintaining safe operations and environmental stewardship [12] Management's Comments on Operating Environment and Future Outlook - Management noted that despite the challenging macroeconomic backdrop, financial performance and distributions will continue to be supported by the ethylene sales agreement [11][12] - There is no immediate need for Westlake Corporation to raise equity capital, indicating a stable financial position [18] Other Important Information - The partnership has made 44 consecutive quarterly distributions since its IPO in July 2014, with a 71% increase in distributions since the original minimum quarterly distribution [9][10] Q&A Session Summary Question: Will the outage impact from Q2 affect OpCo assets in Q3? - Management confirmed that the ethylene unit was not affected by the outage and is running reliably post-turnaround [17] Question: Are certain growth opportunities more appealing in the current environment? - Management indicated that there is no immediate need for capital, and the markets have contracted, making it unlikely to raise equity capital in the current year [18]

Financial Data and Key Metrics Changes - The normalized FFO per share for Q2 2025 was $0.37, and normalized AFFO per share was $0.38, representing a 6% improvement over the same period in 2024 [21][24] - Total normalized FFO and normalized AFFO for the quarter were $89.2 million and $91.6 million respectively, reflecting strong sequential growth from increased NOI in both triple net and managed senior housing portfolios [21][22] - Cash rental income from the triple net portfolio increased by $2.3 million from the first quarter, driven by a $1.4 million increase in percentage rents [22] Business Line Data and Key Metrics Changes - The managed senior housing portfolio contributed nearly 21% to total annualized cash NOI, with cash NOI for the quarter growing 17.1% year over year in the same store portfolio [14][18] - Revenue for the same store managed senior housing portfolio grew 5.6% year over year, with occupancy increasing to 86% from 84.6% in 2024 [16] - Cash NOI from the managed senior housing portfolio totaled $25.3 million for the quarter, up from $24.1 million last quarter [22] Market Data and Key Metrics Changes - The average Medicaid rate increase is expected to be around 3.5%, with the top five skilled nursing tenants averaging just above 5% [8] - The Medicare market saw an upward revision from 2.8% to 3.2%, which is considered unusual but positive [8] - The Canadian portfolio's RevPAR increased by 6.8% year over year, with occupancy above 90% for over five quarters [17] Company Strategy and Development Direction - The company aims to increase its SHOP (Senior Housing Operating Portfolio) from 20% to 30% by 2026, requiring $1 billion in investments [11] - The focus remains on acquiring well-performing newer senior housing communities that cater to the baby boomer generation [15] - The company is not interested in building a loan book or complex joint venture structures, preferring straightforward traditional deals [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the investment activity and operational performance, noting that triple net rent coverage is at new highs across all asset classes [12] - The company anticipates continued growth momentum into 2026, with a strong pipeline of investment opportunities [12][71] - Management remains cautious about the potential impact of economic factors on Medicare and Medicaid but believes the industry is in a healthier position than before [92][96] Other Important Information - The company declared a quarterly cash dividend of $0.30 per share, representing a payout of 79% of the second quarter normalized AFFO per share [29][30] - The net debt to adjusted EBITDA ratio was five times as of June 30, 2025, a decrease from previous quarters, indicating improved leverage [25][26] Q&A Session Summary Question: Investment guidance and confidence in reaching $500 million for the year - Management indicated that the investment range would be between $400 million to $500 million, depending on timing [33] Question: Composition of future investments and skilled nursing deals - Management clarified that while pricing is not an issue, the focus is on finding quality assets in the right markets, with a majority of future investments likely still in SHOP [35] Question: Same store SHOP NOI performance and guidance - Management expressed hope for upside but opted for a moderate approach in guidance adjustments [42] Question: Impact of holiday transition on occupancy and NOI - Management noted that the transition had an initial negative impact but expected improvements in occupancy and NOI moving forward [66] Question: Labor market conditions and wage increases - Wage increases across operators are around 4%, with no significant issues in specific markets [100][103] Question: Selection criteria for new operators - The selection process involves understanding operators' quality outcomes and their desire for growth [107]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $483.5 million, a 19.8% year-over-year decrease driven by a 20.1% decline in home closings, slightly offset by a 0.4% increase in average sales price (ASP) to $365,446 [11][12] - Adjusted gross margin was 25.5%, up from 23.6% in the prior quarter, but down from 27% in the same period last year [12][13] - Pretax net income margin was 8.7%, with earnings per share at $1.36 [7][14] Business Line Data and Key Metrics Changes - The company closed 1,323 homes in Q2 2025, with a significant increase in wholesale closings, which accounted for 17.9% of total closings compared to 7.1% last year [11][12] - The cancellation rate increased to 32.7% from 22.2% in the same period last year, influenced by a slower sales pace [15][60] Market Data and Key Metrics Changes - The company ended Q2 with 146 active communities, a 14% increase year-over-year [7] - Top markets by closings per community included Atlanta (6.8), Nashville (5.4), Wilmington (5.3), Richmond (4.7), and Charlotte (4.5) [7] Company Strategy and Development Direction - The company remains focused on maintaining profitability through balanced financing incentives while raising prices in higher-performing communities [6] - There is a commitment to improving operating efficiency and optimizing advertising investments [6][12] - The company plans to moderate starts in the coming quarters to align with current sales trends [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for the housing market, driven by strong demographic trends and a structural shortage of homes [5][6] - The company is limiting guidance to Q3 2025 due to market uncertainties, expecting to close between 1,100 and 1,300 homes [21][22] - Management noted recent trends in June and July showed improvement in sales, attributed to a better rate environment and effective sales initiatives [20][29] Other Important Information - The company ended Q2 with $1.7 billion in debt, a debt to capital ratio of 45.8%, and total liquidity of $322.6 million [17][18] - The company repurchased 367,568 shares for $20.6 million during the quarter [18] Q&A Session Summary Question: What is the minimum absorption pace for maintaining gross margin? - Management indicated that they analyze absorption pace community by community and are currently incentivizing older inventory to improve sales pace [24][25] Question: What are the encouraging trends seen in late June and July? - Management noted that both a better rate environment and effective follow-up on digital leads contributed to improved sales trends [27][29] Question: How do you expect the share repurchase trend to continue? - Management stated that while share repurchases are on the table, the focus remains on reducing overall leverage [38] Question: What is the expected trend for finished lot sales moving forward? - Management indicated that finished lot sales are unpredictable and will be evaluated on a community-by-community basis [58] Question: What impacted the high cancellation rate in the current quarter? - Management explained that a large wholesale contract cancellation contributed to the elevated cancellation rate, which would have been more normalized without it [61] Question: How are incentives as a percentage of ASP trending compared to last year? - Management noted that incentives are slightly higher than last year, by about 50 to 100 basis points [64] Question: What is the outlook for community count for the rest of the year? - Management expects community count to increase in 2026, with a focus on timing and capital spending to open new communities [68]