Financial Data and Key Metrics Changes - Resort net revenue increased by 4% year over year, driven by improved visitation at Australian resorts due to favorable weather and the introduction of the Epic Australia four-day pass [19] - Fiscal first quarter resort reported EBITDA remained flat year over year, reflecting benefits from the Resource Efficiency Transformation Plan offset by inflation, increased marketing spend, and one-time costs [20] - North American pass product selling period saw units down by 2% but sales dollars up by 3%, with an acceleration in pass sales trends noted [21][22] Business Line Data and Key Metrics Changes - The company reported a 55% growth in pass units over the past five years, indicating increased guest commitment and financial stability [23] - The introduction of Epic Friends Tickets and advanced discount offerings for lift tickets aims to drive lift ticket visitation, which is critical for long-term guest lifetime value [9][10] Market Data and Key Metrics Changes - The company has approximately 2.3 million guests committed to its resorts, expected to generate around $1 billion in revenue, accounting for about 74% of all skier visits [23] - Snowfall was down almost 60% compared to the prior year at Western North American resorts, impacting local pass sales [22] Company Strategy and Development Direction - The company is focusing on modernizing its marketing approach, increasing media spending, and engaging younger consumers through social and digital channels [12][13] - A capital investment plan of $215-$220 million for 2026 aims to enhance guest experience through technology and multi-year initiatives [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategies being implemented to drive growth, despite a slow start to the season due to challenging weather conditions [16][26] - The company reiterated its guidance for net income and resort-reported EBITDA for fiscal year 2026, factoring in price increases and efficiencies from the Resource Efficiency Transformation Plan [24][25] Other Important Information - The company is investing in technology to enhance guest experience, including improvements to the My Epic app and e-commerce platform [31][32] - The new Chief Revenue Officer is expected to contribute significantly to growth and marketing modernization [15] Q&A Session Summary Question: How do you expect the new initiatives to play out between price and volume? - Management indicated that the initiatives aim to make lift tickets more accessible and competitive, with expectations of increased volume offsetting price reductions [37][40] Question: What is the impact of weather on pass sales and guidance? - Management acknowledged that challenging weather conditions impacted pass sales but noted a positive turnaround in revenue trends post-Labor Day [42][43] Question: How do you view third-party benefits to the pass? - Management stated that while third-party benefits are considered, the primary focus remains on pricing and access to resorts [49] Question: Will there be more advanced lift ticket discounts in the future? - Management clarified that while the current initiative is unique, they are open to exploring creative pricing strategies [92] Question: How do technology investments impact returns? - Management highlighted that technology investments improve guest experience and conversion rates, making it easier to track returns compared to traditional investments [56] Question: What is the potential for AI in pricing strategies? - Management noted that AI can help analyze data for better pricing decisions, but ultimately, business judgment will guide pricing strategies [93]

Financial Data and Key Metrics Changes - Adobe reported record revenue of $23.77 billion for FY25, growing 11% year-over-year as reported and in constant currency [30] - Non-GAAP EPS for FY25 was $20.94, representing a 14% year-over-year increase [30] - Q4 revenue reached $6.19 billion, growing 10% year-over-year as reported and in constant currency [32] - GAAP EPS in Q4 was $4.45, and non-GAAP EPS was $5.50, increasing 17% and 14% year-over-year, respectively [32] Business Line Data and Key Metrics Changes - Digital Media revenue for FY25 was $17.65 billion, growing 11% year-over-year [30] - Digital Experience segment revenue was $5.86 billion for FY25, growing 9% year-over-year [30] - Digital Media ending ARR reached $19.2 billion, growing 11.5% year-over-year [10] - Digital Experience subscription revenue in Q4 was $1.41 billion, representing 11% year-over-year growth [32] Market Data and Key Metrics Changes - Monthly active users (MAU) for Acrobat and Express surpassed 750 million, growing 20% year-over-year [34] - MAU for creative offerings like Firefly, Express, and Premiere Mobile surpassed 70 million in Q4, growing over 35% year-over-year [21] - Total customers with ARR over $10 million grew 25% year-over-year to over 150 [35] Company Strategy and Development Direction - Adobe's strategy focuses on leveraging AI to enhance product offerings and customer engagement, with significant investments in AI-driven solutions [4][8] - The company aims to integrate AI deeply into its solutions, with over one-third of its overall business now influenced by AI [33] - The intent to acquire Semrush for approximately $1.9 billion is aimed at enhancing brand visibility and addressing marketers' needs in the AI landscape [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Adobe's ability to deliver industry-leading innovation and double-digit ARR growth in FY26 [39] - The company anticipates total Adobe revenue of $25.9-$26.1 billion for FY26, with a target of 10.2% growth in total Adobe ARR [37] - Management highlighted strong demand for AI-influenced offerings and the positive impact of recent innovations on customer engagement [30][33] Other Important Information - Adobe achieved record cash flows from operations of $10.03 billion in FY25 [31] - The company executed record share repurchases totaling nearly $12 billion, reducing shares outstanding by over 6% [30] - The introduction of new AI capabilities and products, such as Firefly and Acrobat AI Assistant, has significantly enhanced user engagement [14][15] Q&A Session Summary Question: Interest in Firefly Foundry and its economic potential - Management discussed the early stages of customer engagement with Firefly Foundry, emphasizing its ability to create customized AI models for enterprises [42][43] Question: ROI focus on new productivity enhancements - Management highlighted the importance of personalized content creation and the ability to track marketing effectiveness through integrated solutions [51][52] Question: Strategic rationale behind the Semrush acquisition - Management explained that the acquisition aims to enhance brand visibility and provide a comprehensive solution for marketers across various channels [58][59] Question: Stability and acceleration of ARR growth - Management expressed confidence in the momentum across all customer groups and the potential for stable ARR growth moving forward [64][69] Question: Credit consumption and monetization of third-party models - Management noted a 3x increase in credit consumption and discussed the impact of third-party models on overall consumption and monetization strategies [76]

Financial Data and Key Metrics Changes - The company achieved record annual revenue of $7.05 billion, up approximately 15% year-over-year, with Q4 revenue of $2.25 billion, at the high end of guidance [5][14]. - The total backlog increased to $11.4 billion, up from $10.1 billion in the previous quarter [13]. - Non-GAAP operating margin for FY25 was 37.3%, with Q4 non-GAAP operating margin at 36.5% [14][15]. - GAAP earnings per share for Q4 and FY25 were $2.39 and $8.07 respectively, while non-GAAP earnings per share were $2.90 and $12.91, exceeding guidance [14][15]. Business Line Data and Key Metrics Changes - The design automation segment revenue, including EDA and Ansys, was $5.3 billion, up 26%, while excluding Ansys, it grew approximately 8% [15]. - The design IP segment revenue was $1.75 billion, down 8% due to challenges in the second half of the year [15]. - The hardware-assisted verification (HAV) business saw a record year with 12 competitive wins in Q4 [8]. Market Data and Key Metrics Changes - China faced significant challenges, with revenue down 18% for FY25, and down 22% excluding Ansys [14]. - The company noted stronger semiconductor demand in mobile and automotive sectors, while industrial markets remained subdued [6]. Company Strategy and Development Direction - The integration of Ansys is a key focus, with the company aiming to deliver joint solutions in the first half of 2026 [11][62]. - The company is targeting double-digit growth for Ansys revenue in FY26, driven by increased R&D investments in various industries [60]. - A strategic partnership with NVIDIA is expected to enhance design and engineering capabilities with AI and accelerated computing [7]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential despite current challenges, particularly in the IP business [41][76]. - The company is adopting a pragmatic approach to forecasting, particularly regarding the ongoing challenges in China [76]. - Management emphasized the importance of AI in driving future demand for engineering solutions, indicating a shift in how engineering is approached [6][48]. Other Important Information - The company plans to prepay $2.55 billion of its term loans in the first half of 2026, which is expected to be accretive to EPS [16][19]. - The guidance for FY26 includes total revenue of $9.56-$9.66 billion, with Ansys contributing approximately $2.9 billion at the midpoint [17]. Q&A Session Summary Question: What is the embedded organic growth rate in the 2026 guide? - Management indicated it is around 8%, factoring in the divestitures and muted growth expectations for the IP business [22][23]. Question: What are the expectations for EDA and IP growth in the guidance? - Management acknowledged that EDA growth is impacted by the China environment and a muted roadmap for certain customers, while IP is expected to have a transitional year [31][32]. Question: Can the IP business achieve mid-teens growth in FY27? - Management expressed confidence in the IP portfolio and ongoing customer engagements, indicating that growth could return to mid-teens in the future [82]. Question: What is the rationale behind the NVIDIA investment? - The investment was made to accelerate computational capabilities and modernize engineering solutions, leveraging the strengths of both companies [44][45]. Question: How is the integration of Ansys progressing? - Integration efforts are underway, with R&D teams working together to deliver joint solutions, while maintaining separate go-to-market strategies for different customer segments [61][62].

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $19.8 million, exceeding guidance of $17-$19 million, driven by strong demand for AI-related equipment [5][13] - Adjusted EBITDA was $2.6 million, approximately 13% of revenue, surpassing mid-single-digit expectations [5] - GAAP net income for Q4 2025 was $1.1 million, or $0.07 per share, compared to a net income of $0.1 million, or $0.01 per share in the previous quarter [16] Business Line Data and Key Metrics Changes - Thermal processing solutions segment saw over 30% of revenue from AI infrastructure equipment, up from 25% in the prior quarter [6] - Semiconductor fabrication solutions segment slightly exceeded expectations despite weak demand for mature node applications [9] - Revenue mix consisted of approximately 60% from capital equipment and 40% from recurring revenues [7][36] Market Data and Key Metrics Changes - Strong demand in Asia for reflow ovens used in AI applications contributed to sequential revenue increase [13] - Mature node semiconductor revenues declined significantly, impacting overall revenue compared to the same period last year [13] Company Strategy and Development Direction - The company is focusing on expanding higher-margin recurring revenue streams while capitalizing on AI infrastructure opportunities [8][11] - Cost reduction initiatives have resulted in $13 million of annualized savings, improving operational efficiency [10] - A share repurchase program of up to $5 million has been authorized to return capital to shareholders while investing in growth [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strength for AI-related equipment revenue based on fourth quarter bookings [8] - The company anticipates revenue in the range of $18-$20 million for Q1 2026, with expectations for solid operating leverage [17][18] - Management acknowledged the cyclical nature of the semiconductor equipment industry and its impact on revenue [18] Other Important Information - The CFO announced resignation effective December 29, 2025, with plans to assist in the transition [19][20] - The company is targeting high-end, high-margin applications in medtech and defense markets to develop recurring revenue streams [10] Q&A Session Summary Question: Visibility with AI customers and backlog trends - Management noted strong demand and visibility, with most equipment being booked and shipped within the same quarter [23][24] Question: Savings from subletting underutilized facilities - Expected annualized savings from subletting underutilized facilities are estimated at $700,000-$1 million [26] Question: New applications for silicon carbide - Management indicated potential growth in silicon carbide for power electronics in data centers, but noted that substrate applications for AI chips are still in early stages [27][30] Question: Opportunities in the service area - Focus is on high-value niche opportunities in medical and defense sectors, leveraging foundry services for recurring revenue [32] Question: Margin profile of existing backlog - Management confirmed that the backlog has been cleaned up, with a focus on high-quality, high-margin products [37] Question: Impact of auto industry trends - Management clarified that their exposure is primarily to Western OEMs, which have been soft, despite better EV sales in China [38] Question: Competitive landscape in thermal area - No significant changes in the competitive landscape were noted [46]

Financial Data and Key Metrics Changes - Remaining performance obligations (RPO) ended at $523.3 billion, up 433% year over year, with a $68 billion increase since August [5] - Total cloud revenue was $8 billion, up 33%, with cloud revenue now accounting for half of Oracle's overall revenue [5] - Total revenues for the quarter were $16.1 billion, up 13%, higher than the 9% growth reported in Q2 last year [6] - Non-GAAP EPS was $2.26, up 51%, while GAAP EPS was $2.10, up 86% [6] - Operating cash flow was $2.1 billion, while free cash flow was negative $10 billion due to $12 billion in CapEx [7] Business Line Data and Key Metrics Changes - Cloud infrastructure revenue was $4.1 billion, up 66%, with GPU-related revenue growing 177% [5] - Cloud applications revenue was $3.9 billion, up 11%, with strategic back office applications revenue at $2.4 billion, up 16% [6] - Multi-cloud consumption increased by 817% year over year [15] Market Data and Key Metrics Changes - Oracle's cloud infrastructure business continues to grow faster than competitors, with significant demand for AI infrastructure [11] - The company operates 147 live customer-facing regions with 64 more planned, indicating strong market expansion [11] Company Strategy and Development Direction - The company is focused on maintaining investment-grade debt rating while exploring various funding options for growth [8] - Oracle aims to synchronize payments with receipts to minimize borrowing needs, emphasizing a strategic approach to capital expenditures [8] - The integration of AI into database and application services is a key strategy, with a focus on delivering enterprise-grade AI solutions [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the healthy customer backlog and operational strength to execute future growth [9] - The company expects $4 billion of additional revenue in FY27 due to added RPO from Q2 [9] - Guidance for Q3 includes total cloud revenue growth expected between 37%-41% in constant currency [10] Other Important Information - The company recognized a pre-tax gain of $2.7 billion from the sale of its interest in Ampere [6] - The launch of new AI models and partnerships is expected to enhance customer experience and drive OCI consumption [15] Q&A Session Summary Question: How much money does Oracle need to raise to fund its AI growth plans? - Management indicated that they expect to need less than the $100 billion anticipated by analysts, thanks to various funding models that minimize upfront capital expenditures [36][39] Question: How long will it take for AI margins across OCI data centers to ramp up? - Management stated that the time to ramp up margins is a couple of months, depending on the mix of data centers and the speed of capacity delivery [42][44] Question: How is Oracle thinking about selling additional platform services? - Management highlighted the importance of making the Oracle database available across multiple clouds and integrating AI capabilities to enhance data value [47][49] Question: What would be required to convert a data center from one customer to another? - Management explained that the process of reallocating capacity between customers is efficient, taking only hours due to the technology and demand in place [55][56] Question: Why is there confidence in the applications business despite industry trends? - Management attributed confidence to the unique position of Oracle in offering complete application suites with integrated AI, leading to significant growth in industry applications [66][70]

Financial Data and Key Metrics Changes - Synopsys achieved record annual revenue of $7.05 billion in FY25, up approximately 15% year-over-year, with Q4 revenue of $2.25 billion, aligning with guidance [12][13] - The company ended FY25 with a backlog of $11.4 billion, up from $10.1 billion in the previous quarter [12] - Non-GAAP operating margin for FY25 was 37.3%, with Q4 non-GAAP operating margin at 36.5% [14] - GAAP earnings per share for FY25 were $8.07, while non-GAAP EPS was $12.91, exceeding guidance due to lower expenses [14][15] Business Line Data and Key Metrics Changes - The design automation segment, including EDA and Ansys, generated $5.3 billion in revenue for FY25, up 26%, while excluding Ansys, it grew approximately 8% [15] - The design IP segment revenue was $1.75 billion, down 8% due to challenges in the second half of the year [15] - Ansys contributed $757 million to total revenue in FY25, with Q4 revenue of $668 million [13][14] Market Data and Key Metrics Changes - China faced significant challenges, with revenue down 18% in FY25, and excluding Ansys, down 22% [13][14] - The semiconductor demand is strong in mobile and automotive sectors, while industrial markets remain subdued [5][12] Company Strategy and Development Direction - Synopsys aims to leverage the Ansys acquisition to enhance its engineering solutions from silicon to systems, focusing on AI-driven design and multi-domain integration [4][6] - The company plans to deliver its first joint solutions with Ansys in the first half of 2026, targeting double-digit growth for Ansys revenue [11][56] - Strategic partnerships, such as with NVIDIA, are expected to enhance design and engineering capabilities [6][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the AI infrastructure build-out driving semiconductor demand, despite challenges in certain markets like China [5][12] - The company anticipates a transitional year for the IP business in FY26, with muted growth expected due to ongoing adjustments and market conditions [10][36] - Management emphasized a focus on operational excellence and financial discipline to drive sustainable growth and margin expansion [11][19] Other Important Information - Synopsys plans to prepay $2.55 billion of its term loans in the first half of 2026, which is expected to be accretive to EPS [16][18] - The company is adopting a normalized non-GAAP tax rate of 18% projected through 2028 [17] Q&A Session Summary Question: What is the embedded organic growth rate in the 2026 guide? - Management indicated that the organic growth rate is around 8%, factoring in the divestitures and muted growth for the IP business [22][23] Question: What are the growth expectations for EDA and IP in the guidance? - Management confirmed that EDA growth is impacted by the China environment and ongoing market dynamics, with IP expected to grow modestly [28][29] Question: Can you provide an update on the IP business and headwinds? - Management acknowledged challenges in the IP business but expressed confidence in long-term growth, emphasizing ongoing customer engagement and portfolio strength [35][36] Question: What is the rationale behind the NVIDIA investment? - The investment was driven by the potential for accelerated computational capabilities and modernization of engineering solutions, enhancing market reach [40][41] Question: How does the company plan to address the monetization challenges in EDA? - Management recognized the need for better monetization strategies and highlighted the importance of joint solutions with Ansys to capture value [78][80]

Financial Data and Key Metrics Changes - Resort net revenue increased by 4% year over year, driven by improved visitation at Australian resorts due to favorable weather and the introduction of the Epic Australia four-day pass [14] - Fiscal first quarter resort reported EBITDA was flat year over year, reflecting benefits from the Resource Efficiency Transformation Plan offset by inflation and increased marketing spend [14] - The company expects to deliver approximately $75 million in cumulative efficiencies from the Resource Efficiency Transformation Plan, with one-time operating expenses of approximately $14 million for fiscal year 2026 [14][18] Business Line Data and Key Metrics Changes - North American pass product selling period saw units down by 2% but sales dollars up by 3%, with an acceleration in pass sales trends noted [15][16] - Approximately 2.3 million guests are committed to the company's resorts for the upcoming season, expected to generate around $1 billion in revenue [17] - The company has grown pass units by 55% over the past five years, indicating increased guest commitment and financial stability [17] Market Data and Key Metrics Changes - The company faced a slow start in the Rockies and Tahoe resorts due to challenging early season conditions, while strength was noted in the Northeast and typical patterns at Whistler Blackcomb and in Switzerland [12] - Snowfall was down almost 60% compared to the prior year at Western North American resorts, impacting local pass sales [16] Company Strategy and Development Direction - The company is focusing on driving lift ticket visitation as a critical entry point for guests to join the pass program, with new strategies like Epic Friends Tickets and advanced discount offerings [5][6] - Dynamic pricing strategies are being implemented to drive off-peak visitation and enhance competitiveness at certain resorts [7] - The company is modernizing its marketing approach to engage younger consumers through social media and digital channels [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategies being implemented to drive growth, despite early season challenges [12] - The company is focused on delivering an exceptional guest experience and optimizing products and pricing to support overall guest experience for fiscal year 2027 [12][24] - Management reiterated guidance for net income and resort-reported EBITDA for fiscal year 2026, factoring in expected growth from price increases and efficiencies [18][19] Other Important Information - The company announced a core capital investment plan of $215-$220 million for fiscal year 2026, focusing on enhancing guest experience and technology investments [20][22] - The company is committed to sustainability initiatives through investments in low-energy snowmaking and waste reduction projects [24] Q&A Session Summary Question: How do you expect the new initiatives to play out between price and volume? - Management indicated that the initiatives aim to make lift tickets more accessible and competitive, with expectations of increased volume despite price reductions [26][27] Question: What is the impact of weather on pass sales? - Management noted that while pass sales improved, they were impacted by challenging weather conditions, particularly at the end of the selling period [30][31] Question: How do you view third-party benefits to the pass? - Management stated that while third-party benefits are considered, the primary focus remains on pricing and access to resorts [34] Question: What are the expectations for ancillary spend from first-time visitors? - Management indicated it is too early to assess the impact of new initiatives on ancillary spend but expects first-time visitors to behave similarly to existing destination guests [61] Question: Will there be changes to the pass structure in the future? - Management confirmed that while all options are considered, there are no immediate plans to extend deadlines for pass purchases [37] Question: How do technology investments impact returns? - Management highlighted that technology investments improve guest experience and conversion rates, making it easier to track returns compared to physical infrastructure investments [41]

Financial Data and Key Metrics Changes - The company generated $81.3 million in revenue, representing approximately 33% year-over-year growth, marking another quarter of growth acceleration [5][18] - Non-GAAP gross margin was 60% in the quarter, down from 64% in the same quarter of the previous fiscal year [22] - Adjusted EBITDA profit was $5.6 million, marking the fourth sequential quarter of Adjusted EBITDA profitability [5][23] - The backlog was $734.5 million at the end of the quarter, representing a year-over-year increase of 216% [5][25] - Free Cash Flow was positive for the third consecutive quarter, reinforcing expectations of being Free Cash Flow positive for the full fiscal year [5] Business Line Data and Key Metrics Changes - Revenue from the defense and intelligence sector grew over 70% year-on-year, driven by strong performance in data subscription and satellite services [6][19] - Civil government sector revenue was up approximately 1% year-over-year and up approximately 15% quarter-over-quarter [9] - Revenue from the commercial sector was moderately down both year-over-year and quarter-over-quarter, attributed to a focus on large government customers [10] Market Data and Key Metrics Changes - Revenue growth was distributed globally, with approximately 38% year-over-year growth in both Asia-Pacific and EMEA, 30% in North America, and 7% in Latin America [20] - The end-of-period customer count was 910, flat on a sequential basis, reflecting a focus on large customer opportunities [21] Company Strategy and Development Direction - The company is focusing on AI-enabled solutions for government customers, which are expected to unlock growth in the commercial sector [11] - Strategic projects include the OWL next-generation monitoring fleet and Project SunCatcher, aimed at enabling scaled AI computing in space [14][15] - The acquisition of Bedrock Research is expected to accelerate the roadmap for AI-enabled solutions and support scaling to meet market demand [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving Adjusted EBITDA profitability for FY26, highlighting strong execution and strategic wins in the government sector [17][28] - The company anticipates continued revenue growth and a solid increase in average revenue per customer, indicating successful sales strategies [21][22] - Management remains optimistic about the future, citing robust demand for satellite services and AI-enabled analytics [12][13] Other Important Information - The company raised $460 million of convertible debt in September, significantly strengthening its balance sheet [18][24] - Capital expenditures in Q3 were approximately $27.7 million, driven by prepayments for favorable pricing in hardware procurements [23] Q&A Session Summary Question: Guidance on revenue and margin - Management noted that Q4 guidance reflects some one-time items from Q3 and adjustments due to downsized contracts, impacting revenue and margins [30][31] Question: Details on Bedrock acquisition - Bedrock specializes in remote sensing, AI, and national security data, integrating various data sets for government contracts [32][33] Question: Feasibility of Project SunCatcher - Management believes Project SunCatcher is a viable long-term project, with significant market opportunities as space infrastructure costs decrease [35][36] Question: Progress on JSAT and Germany deals - JSAT is performing well, with the team meeting and exceeding customer expectations, contributing positively to financial forecasts [39] Question: Revenue flow from Pelican satellites - Revenue from Pelican satellites is expected to scale gradually as contracts are secured, with no anticipated irregularities [51][53] Question: Clarity on EOCL contract cutbacks - Management indicated strong interest from the government in leveraging new technologies, despite cutbacks, and expects growth in this area [52]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $20.5 million, up from $11.6 million in the prior year, representing a growth of 77% for the quarter and 43% for the full year [17] - Gross margin for Q4 was 31%, an increase of 530 basis points year over year, while the full year gross margin was 30.9% compared to 30.7% in the prior year [18] - Operating profit for Q4 was $2.4 million compared to $0.7 million in the prior year, and for the full year, it was $5.5 million compared to $0.7 million in the prior year, marking an increase of 685% year over year [19] - The company generated a net profit of $2 million for Q4, a significant increase from a net loss of $0.1 million in the prior year, and a net profit of $3.4 million for the full year compared to a net loss of $1.5 million in the prior year [19] - Adjusted EBITDA for Q4 was $3.4 million, up 126% from $1.5 million in the prior year, and for the full year, it was $8.8 million compared to $4.1 million in the prior year, an increase of 115% [20] Business Line Data and Key Metrics Changes - The core material handling vertical continues to be strong, with over 10,000 sets deployed globally, and a record number of units deployed this year, primarily driven by demand from Fortune 500 and Fortune 100 companies [11] - New verticals such as robotics and airport ground equipment are expected to contribute to revenue growth, with initial orders received for robotics and trials ongoing for airport ground equipment [12] Market Data and Key Metrics Changes - Demand indications from major customers suggest continued growth into fiscal 2026, with expectations for new verticals to represent 10%-15% of revenue for fiscal 2026 [23] - The company anticipates exceeding 30% revenue growth in 2026, with material handling accounting for 80%-85% of total revenue [23] Company Strategy and Development Direction - The company is focused on maintaining profitable growth while advancing its technology roadmap, including rapid charging cell development and solid-state battery development [10][11] - The Jamestown lithium-ion cell manufacturing facility is central to the company's strategy, supporting supply chain resilience and domestic content requirements [14] - The company aims to target recurring revenue opportunities through energy-as-a-service models and maintenance contracts as its installed base grows [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain strong margins and profitability moving into fiscal 2026, despite uncertainties in the market [18][20] - The company is optimistic about the potential of new verticals, particularly robotics and energy storage, which are expected to drive future growth [12][35] Other Important Information - The company closed the year with positive net working capital of $38.5 million compared to $0.8 million in the prior year, indicating improved financial performance [21] - Subsequent to the end of the quarter, the company raised gross proceeds of $28 million from an equity issuance, enhancing its liquidity position [22] Q&A Session Summary Question: Insights on new verticals and potential revenue impact - Management indicated that robotics is expected to be the second largest revenue driver after material handling, with good visibility on defense applications as well [29] Question: Clarification on revenue guidance for fiscal 2026 - Management stated that they are being conservative in their forecasts, with potential surprises likely to be upside [32] Question: Pipeline for energy storage applications - Management noted strong interest from existing material handling customers and new inquiries, indicating a promising pipeline for energy storage [34] Question: Competitive landscape for energy storage and robotics - Management highlighted the safety and reliability of their technology as key differentiators in the energy storage market, while also addressing competition from supercapacitors in robotics [40] Question: Progress on Energy as a Service initiative - Management confirmed ongoing work with third-party logistics companies to market the product, expecting traction in 2026 [44] Question: Transition of capacity from Mississauga to Jamestown - Management clarified that both facilities will operate concurrently, with Jamestown ramping up production without slowing down operations in Mississauga [54]

Financial Data and Key Metrics Changes - Adobe reported record revenue of $23.77 billion for FY25, growing 11% year-over-year, with non-GAAP EPS of $20.94, reflecting a 14% increase [4][27] - In Q4, revenue reached $6.19 billion, a 10% year-over-year growth, with GAAP EPS of $4.45 and non-GAAP EPS of $5.50, increasing 17% and 14% year-over-year respectively [29][27] - Total Adobe ending ARR was $25.2 billion, growing 11.5% year-over-year, with digital media ending ARR at $19.2 billion, also growing 11.5% year-over-year [28][27] Business Line Data and Key Metrics Changes - Digital Media achieved revenue of $4.62 billion in Q4 and $17.65 billion for the full year, both growing 11% year-over-year [9][27] - Digital Experience segment revenue was $1.52 billion in Q4 and $5.86 billion for FY25, with subscription revenue growing 11% year-over-year [21][27] - The consumption of generative credits in Creative Cloud, Firefly, and Express increased approximately 3x quarter-over-quarter [32][78] Market Data and Key Metrics Changes - Monthly active users (MAU) for creative offerings surpassed 70 million in Q4, growing over 35% year-over-year [18][20] - The number of customers with over $10 million in ARR grew 25% year-over-year, exceeding 150 [32][27] - Digital Experience subscription revenue grew over 40% year-over-year, indicating strong market demand [22][27] Company Strategy and Development Direction - Adobe's strategy focuses on leveraging AI to enhance product offerings and customer engagement, with significant investments in AI-driven solutions [4][7] - The company aims to integrate AI deeply into its solutions, with a target of over 10% total Adobe ARR growth for FY26 [8][27] - The intent to acquire Semrush is part of Adobe's strategy to enhance brand visibility and address marketers' needs in the evolving digital landscape [23][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Adobe's ability to deliver industry-leading innovation and double-digit ARR growth, driven by strong global demand for AI solutions [36][37] - The company highlighted the importance of customer experience orchestration and the growing role of AI in marketing and content production [21][22] - Management noted that Q4 showed strong indicators of growth, setting a positive tone for FY26 targets [63][66] Other Important Information - Adobe's cash flows from operations reached $10.03 billion, with a strong ending cash and short-term investment position of $6.6 billion [28][27] - The company executed record share repurchases totaling nearly $12 billion, reducing shares outstanding by over 6% during the year [27][28] - The introduction of Firefly Foundry and other AI-driven products is expected to unlock significant economic potential for Adobe [41][46] Q&A Session Summary Question: Interest in Firefly Foundry and its economic potential - Management discussed the early stages of customer engagement with Firefly Foundry, emphasizing its ability to create customized AI models for enterprises, which could significantly enhance content production efficiency [41][42][46] Question: ROI focus on new productivity enhancements - Management highlighted the opportunity to optimize content creation and delivery, emphasizing the unique ability to track the effectiveness of marketing campaigns through integrated analytics [50][51][53] Question: Strategic rationale behind the Semrush acquisition - The acquisition aims to enhance brand visibility for marketers across various channels, including LLMs and search engines, providing a comprehensive solution for customer experience orchestration [55][57][59] Question: Future ARR growth stabilization - Management expressed confidence in the momentum across all customer groups, indicating that Q4 was an inflection point for future growth, with a strong outlook for FY26 [63][66][70]