Financial Data and Key Metrics Changes - Cannae's operating revenue for Q3 2025 was $107 million, down $7 million from $114 million in Q3 2024, driven by reduced guest counts and fewer restaurant locations [16] - Total operating expenses decreased by $12 million to $120 million in Q3 2025, with reductions attributed to restaurant group location and operating cost reductions [16][17] - Net recognized gains were $8 million in Q3 2025, down $15 million from the prior year, reflecting lower mark-to-market gains on Paysafe [17] Business Line Data and Key Metrics Changes - Cannae's equity and losses of unconsolidated affiliates were $57 million in Q3 2025, compared to $25 million in Q3 2024, driven by Alight's goodwill impairment and record player trading profits at Black Knight Football [17] - Alight reported total revenue of $533 million in Q3 2025, down 4% year over year, but adjusted EBITDA and free cash flow improved significantly [13][14][15] Market Data and Key Metrics Changes - The restaurant segment saw reduced guest counts and 10 fewer locations, primarily affecting the O'Charley's brand, while the 99 brand maintained flat or slightly down same-store revenues [16] Company Strategy and Development Direction - Cannae is focused on executing its strategic plan initiated in February 2024, which includes optimizing investment strategy, capital allocation, and managing its portfolio for long-term value creation [4][5] - The company has transitioned its portfolio from 70% public investments to 20% public investments, emphasizing proprietary private investments expected to generate outsized returns [5][10] - Future capital allocation will concentrate on sports and sports-related assets, leveraging networks to find opportunities in the sports ecosystem [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic plan's execution and the progress made, highlighting the importance of transitioning to proprietary investments [4][10] - The company remains optimistic about the sports sector evolving into an institutional asset class, with a focus on improving cash flows and generating investor returns [9] Other Important Information - Cannae has returned over $500 million to shareholders since the strategic plan announcement, representing 35% of shares outstanding at that time [10] - The company plans to sell certain non-core assets to take advantage of expiring tax benefits, potentially generating up to $55 million in cash tax refunds [6] Q&A Session Summary Question: Potential tax benefits and investment monetizations - Management indicated that tax assets refer to historical gains where losses could be utilized for tax refunds, focusing on realizing unrealized losses for this purpose [20][21] Question: Criteria for monetizing investments - Management confirmed that the focus would be on realizing unrealized losses and monitoring the broader portfolio for less strategic assets [22] Question: Investments in SpaceX and Brisada Resorts - Management clarified that these investments are not new and may be considered for monetization as part of the strategic review [23][24] Question: AI risks in fintech and software investments - Management acknowledged the growing importance of AI and stated that portfolio companies are leveraging AI to improve efficiency and revenue without being made obsolete [25][26] Question: Divesting non-core assets and capital returns - Management emphasized a balanced approach to returning capital to shareholders while considering new investments, maintaining a consistent dividend [30][32] Question: Update on AFC Bournemouth stadium renovation - Management provided an update on the stadium renovation, indicating that the first phase is expected to be completed by the start of the 2026-2027 season, with significant improvements planned [33][34]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 58% compared to Q3 2024, while operating income surged by 315% year-over-year [5] - Consolidated revenues for Q3 2025 were $149 million, roughly in line with Q3 2024 [11] - Adjusted EBITDA for Q3 2025 was $12.6 million, up from $8 million in Q3 2024, exceeding street expectations [12] Business Line Data and Key Metrics Changes - Global parts and services revenue reached $68.4 million in Q3 2025, compared to $61.7 million in Q3 2024, driven by increased electricity demand from fossil fuels [11] - The backlog rose by 56% quarter-over-quarter to over $393 million, reflecting strong demand for projects, upgrades, and construction [5] Market Data and Key Metrics Changes - The company is experiencing increasing demand for power generation in North America, particularly due to the needs of AI data centers and industrial utilities [4][6] - The company anticipates a significant growth in EBITDA for 2026, projecting a range of $70 million to $85 million, representing an 80% increase year-over-year from 2025 [6][12] Company Strategy and Development Direction - The company is focusing on expanding its global parts and services business while divesting non-core assets to reduce debt [4] - Babcock & Wilcox is positioning itself to support AI data center expansion and increased baseload generation needs [4] - The company is pursuing opportunities in the AI data center space, with a potential pipeline of $3 to $5 billion in projects [9][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth prospects, citing improved margins and a strong backlog [5][6] - The company is in discussions for several AI data center projects, which are expected to drive higher power demands [6][9] - Management highlighted the importance of proven technology in reducing project risks and ensuring timely execution [43] Other Important Information - The company has improved its balance sheet significantly, with total debt at $379.3 million as of September 30, 2025 [12] - Recent equity raises have strengthened the balance sheet, allowing for the planned paydown of bonds due in 2026 [13] Q&A Session Summary Question: Can you discuss the $1.5 billion project and its potential contribution? - Management is working with Applied Digital to finalize project details and anticipates a full notice to proceed in the coming months, with minimal engineering required due to the use of proven technology [19][20] Question: What is the status of the additional pipeline opportunities? - Management indicated that the pipeline has grown to $3 to $5 billion, with several projects in various stages of maturity expected to move forward within the next year [26][27] Question: What is the company's capacity for the power generation segment? - Management stated that they are evaluating internal and external manufacturing capacities and are confident in their ability to meet demand for boiler fabrication and steam turbine supply [29][30]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $70.8 million, down from $138.7 million in Q3 2024, primarily due to the sunset of migrant-related projects [21] - Excluding migrant-related revenue, revenue increased by 8% to $62.4 million in Q3 2025 from $58 million in Q3 2024 [21] - Adjusted EBITDA for Q3 2025 was a loss of $7.1 million compared to adjusted EBITDA of $17.9 million in Q3 2024 [22] - Adjusted gross margin was 33% in Q3 2025, down from 36% in Q3 2024 [23] Business Line Data and Key Metrics Changes - Medical transportation services revenue increased to $50.1 million in Q3 2025 from $48 million in Q3 2024, driven by gains in nearly all U.S. markets [22] - Mobile health revenue for Q3 2025 was $20.7 million, down from $90.7 million in Q3 2024, with non-migrant mobile health revenues increasing by over 20% year-over-year [22] - Remote patient monitoring is operating at an annual run rate of approximately $15 million, with a greater than 10% adjusted EBITDA contribution margin [12] Market Data and Key Metrics Changes - The medical transportation business is expected to generate more than $200 million of revenue in 2025, indicating strong foundational asset growth [9] - The payer and provider vertical is expected to generate approximately $50 million of revenue in 2025, growing to $85 million in 2026, including $25 million from the SteadyMD acquisition [11][30] Company Strategy and Development Direction - The company aims to build a robust, evergreen healthcare business and has a vision of bringing the capabilities of a doctor's office into a patient's living room [6][21] - The acquisition of SteadyMD is expected to enhance the company's virtual care network and clinical capacity, allowing for more efficient patient care delivery [17][18] - The company plans to remain active in M&A to acquire traditional healthcare assets that can benefit from its technology and mobile health capabilities [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive substantial value amid increasing healthcare costs and operational challenges [14] - The company expects to exit 2026 with a cash balance of about $65 million, indicating a positive outlook despite anticipated losses in the first half of the year [30][28] - Management highlighted the importance of their services in helping hospitals manage patient flow and reduce costs, which is timely given current market conditions [46][50] Other Important Information - The company has made significant progress in reducing its debt, paying off $30 million in credit line debt during Q3 2025 [26] - The adjusted gross margin for the medical transportation segment was 31.7% in Q3 2025, the highest since Q1 2024 [23] Q&A Session Summary Question: Can you help bridge the implied margins for the fourth quarter? - Management indicated that SteadyMD's contribution would be around $5 million in revenue for the quarter, slightly EBITDA negative, impacting margin percentages [31] Question: How does the EBITDA guidance for 2026 improve throughout the year? - Management expects the bulk of the negative EBITDA to occur in the first half of 2026, with improvements in gross margins and reduced SG&A expenses anticipated in the latter half [34] Question: What is the expected revenue growth for the payer-provider segment? - The payer-provider revenue for 2026 includes $25 million from SteadyMD, with the remaining $60 million from the current baseline business, not accounting for new contracts or M&A [36] Question: How does the company balance supply and demand in transportation? - Management noted that they are basing hiring plans on the number of trips currently being outsourced, estimating a need for about 700-800 additional staff to meet demand [43] Question: What is the current view on the hospital spending environment? - Management acknowledged concerns about hospital budgets but emphasized their focus on helping hospitals save money and improve efficiency [46][50]

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][18] - Adjusted gross margin increased to 53%, up approximately 510 basis points year-over-year [7][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] 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][13] - The market remains dynamic, with ongoing financial and workforce pressures impacting client operations [10][11] Company Strategy and Development Direction - The company is focused on solutions with proven ROI, emphasizing cost control and operational efficiency to meet client needs [10][11] - There is a commitment to enhancing the Ignite data and analytics platform while providing flexibility for clients to remain on the DOS platform longer if needed [11][12] - The company does not anticipate pursuing additional acquisitions in the near to medium term, focusing instead on driving growth and profitability from existing capabilities [14][15] Management's Comments on Operating Environment and Future Outlook - Management expects revenue performance in 2026 to be a few points lower than in 2025, influenced by dollar-based retention rates and lower net new client counts [13][14] - The company is optimistic about improving adjusted EBITDA in 2026 through strategic focus and cost management [14][21] - Management highlighted the importance of meeting clients where they are, especially regarding the Ignite migration, to improve client experience and retention [12][26] Other Important Information - The company ended Q3 2025 with $92 million in cash and equivalents, down from $392 million at year-end 2024 [17] - Adjusted total operating expenses were $28.1 million, representing 37% of revenue, an improvement from 38% in Q3 2024 [16][17] 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 the company is providing flexibility to meet client needs [24][25] 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 migration headwinds and the growth in the apps layer, with a mix of moving parts affecting revenue [30][31] 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 mid-2026 or later [36][38] Question: How does the company plan to manage costs and expand in 2026? - Management emphasized targeted investments in areas with high client demand, such as cost management and ambulatory performance solutions, while also leveraging AI capabilities [81][82] Question: What is the growth rate in Ignite customers versus DOS customers? - Management acknowledged that Ignite is a more efficient platform and expects growth in the apps layer, while also providing flexibility for clients to remain on DOS longer if needed [64][66]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $29.4 million, representing a 3% growth compared to Q3 2024 [14][18] - Non-GAAP gross margin reached 39.9%, an increase of 350 basis points year-over-year [20] - Non-GAAP operating loss was $10.4 million, a 35% improvement from the prior year [22] - Cash used during the quarter was approximately $6 million, reflecting improved gross margin and lower operating expenses [22][23] Business Line Data and Key Metrics Changes - Tablo console sales increased by 8% in Q3 2025 [12] - Product revenue was $20.6 million, slightly ahead of $20.3 million in the prior year [18] - Recurring revenue from Tablo consumables and service was $21.1 million, slightly above Q3 2024 [18] Market Data and Key Metrics Changes - The average size of sales opportunities increased by over 20% [12] - Hospital demand for insourcing dialysis with Outset's technology continues to grow, indicating a strong market opportunity [11][26] Company Strategy and Development Direction - The company is focusing on enterprise-wide insourcing, managing large opportunities across multiple hospitals [10][11] - Aiming to reach a gross margin milestone of 50% through disciplined expense management and revenue growth [12][20] - The company is committed to improving sales execution and forecasting to better anticipate deal dynamics [34][45] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q3 results fell short of expectations due to timing shifts in large deals [10][30] - There is confidence in the long-term growth potential, with a focus on improving execution under new sales leadership [45][49] - The company expects to see treatment revenue normalize in 2026 as ordering patterns align with actual utilization [19][50] Other Important Information - The resignation of the Head of Sales may cause internal disruption, but the company has a strong sales leadership team in place [12][14] - The company ended the quarter with $182 million in cash and equivalents, indicating sufficient capital for future operations [22][23] Q&A Session Summary Question: What factors contributed to the guidance trim? - Management indicated that a large console opportunity shifted from Q3 to Q4, impacting guidance [28][30] Question: How is the company addressing the sales leadership transition? - The search for a new sales leader is underway, with a focus on candidates with capital equipment and enterprise sales experience [36][39] Question: What is the outlook for 2026? - Management believes that 2025 serves as a good proxy for 2026, with expectations for improved execution and growth [45][82] Question: Are there any concerns about order cancellations? - Management confirmed that no deals have fallen out of the pipeline, and the sales team is actively working on closing remaining opportunities [70][71] Question: What is the status of the home channel and SNF opportunities? - The home channel has shown stable retention rates and growth, with positive feedback from patients using Tablo [75][76]

Financial Data and Key Metrics Changes - The company ended the quarter with $108 million in cash and cash equivalents, with combined operating revenue, interest, and investment income of $43.6 million, compared to approximately $2 million in the same quarter last year, marking an increase of approximately $41 million [11][12] - The loss from operations was $3.7 million, while non-GAAP adjusted EBITDA was a positive $6.6 million, an increase of approximately $23 million from last year's adjusted EBITDA of negative $16.7 million [11][12] - Gevo North Dakota generated income from operations of $12.3 million and a positive non-GAAP adjusted EBITDA of $17.8 million [11] Business Line Data and Key Metrics Changes - Gevo North Dakota is now a core earnings engine, demonstrating reliable energy production, efficient carbon capture, and consistent monetization of clean fuel production credits [13] - Gevo R&G generated income from operations of $0.5 million and positive non-GAAP adjusted EBITDA of $2.7 million [11] Market Data and Key Metrics Changes - The company successfully sold all of its 2025 Section 45(z) clean fuel production credits for a total of $52 million, with net proceeds of approximately $29 million received so far [13][14] - The company expects to grow its carbon dioxide removal (CDR) sales from $1 million in Q2 to $3-$5 million by the end of 2025 [17] Company Strategy and Development Direction - The company aims to maximize adjusted EBITDA from existing assets and plans to build a jet fuel plant at Gevo North Dakota, which could add an additional adjusted EBITDA uplift of about $150 million [9][10] - The company is focusing on monetizing carbon value through various methods, including selling carbon credits and production tax credits, as part of its business model [6][7] - The company is also working on expanding its carbon capture and sequestration capabilities and optimizing energy use at its facilities [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business environment in North Dakota, highlighting its pro-agriculture and pro-energy stance, which aligns well with the company's operations [6] - The management believes that the integration of ethanol production and carbon sequestration is crucial for achieving the best economics and carbon scores for jet fuel [30] - The company anticipates that its operating cash flows will normalize and trend towards break-even or better in the coming quarters [15] Other Important Information - The company has implemented Verity, a digital carbon tracking and verification platform, at its Gevo North Dakota facility, which is expected to enhance transparency and trust in carbon accounting [21][22] - The company has partnered with Frontier Infrastructure Holdings to offer integrated carbon management solutions for ethanol producers [22] Q&A Session Summary Question: Can you elaborate on the incremental capital and steps required to optimize your operation and a reasonable timeline to achieve $110 million of EBITDA? - Management indicated that incremental capital is estimated to be around $15 million, focusing on debottlenecking the ethanol plant and optimizing energy use [34][35] Question: Can you elaborate on the DOE loan extension and how it increases the likelihood of DOE financing? - Management noted that the shift of the DOE loan guarantee to North Dakota is favorable due to the existing profitable operations and infrastructure [38][39] Question: Can you provide insight into the EBITDA drivers for next year? - Management highlighted that growth will primarily come from carbon sequestration capacity expansion and debottlenecking efforts [43][44] Question: How should we project the incremental CI improvement over the next number of quarters? - Management explained that the CI score is expected to drop due to the One Big Beautiful Bill, which will increase 45Z generation [75][76]

Financial Data and Key Metrics Changes - The company ended the quarter with $108 million in cash and cash equivalents, with combined operating revenue, interest, and investment income of $43.6 million, compared to approximately $2 million in the same quarter last year, marking an increase of approximately $41 million [11][12] - The loss from operations was $3.7 million, while non-GAAP adjusted EBITDA was a positive $6.6 million, an improvement of approximately $23 million from last year's negative $16.7 million [12][13] - Gevo North Dakota generated income from operations of $12.3 million and a positive non-GAAP adjusted EBITDA of $17.8 million [11][13] Business Line Data and Key Metrics Changes - Gevo North Dakota is now a core earnings engine, demonstrating reliable energy production and efficient carbon capture, contributing significantly to the company's financial performance [13][14] - Gevo R&G generated income from operations of $0.5 million and positive non-GAAP adjusted EBITDA of $2.7 million [11] Market Data and Key Metrics Changes - The company successfully sold all of its 2025 Section 45Z clean fuel production credits for a total of $52 million, with net proceeds of approximately $29 million received so far [13][14] - The company is expanding its carbon value derived from carbon capture and sequestration (CCS) and anticipates growth in carbon dioxide removal (CDR) credit sales from $1 million in Q2 to $3 million-$5 million by the end of 2025 [17][18] Company Strategy and Development Direction - The company aims to maximize adjusted EBITDA from existing assets and plans to build an ATJ-30 jet fuel plant at Gevo North Dakota, which is expected to add an additional adjusted EBITDA uplift of about $150 million [9][28] - The company is focusing on monetizing carbon value through various methods, including selling carbon credits and production tax credits, which are seen as key initiatives for growth [6][7][13] - The company is also working on expanding its carbon sequestration capacity and exploring partnerships for additional CO2 storage [66][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business environment in North Dakota, highlighting its pro-agriculture and pro-energy stance, which aligns well with the company's operations [6] - The management team believes that the integration of ethanol production and carbon sequestration is crucial for achieving the best economics and carbon scores for jet fuel [30] - The company expects to normalize operating cash flows and trend towards break-even or better in the coming quarters, supported by recurring monetization of tax credits and positive adjusted EBITDA generation [15] Other Important Information - The company has received a conditional commitment from the Department of Energy for financing, which is expected to be more favorable due to the existing operational assets in North Dakota [39][40] - The company is implementing Verity, a digital carbon tracking and verification platform, to enhance transparency and efficiency in carbon accounting [21][22] Q&A Session Summary Question: Can you elaborate on the incremental capital and steps required to optimize your operation and a reasonable timeline to achieve $110 million of EBITDA? - Management indicated that incremental capital is estimated to be around $15 million, focusing on debottlenecking the ethanol plant and optimizing energy use [34][35] Question: Can you elaborate on the DOE loan extension and how it increases the likelihood of financing? - Management noted that the shift of the loan guarantee to North Dakota is seen as a positive development, as the existing operational assets reduce the need for external financing [38][39] Question: Can you provide insight into the EBITDA drivers for next year? - Management highlighted that growth will primarily come from carbon sequestration capacity expansion and debottlenecking efforts, with a focus on maximizing carbon value [42][44] Question: How should we project the incremental CI improvement over the next quarters? - Management explained that the CI score is expected to drop due to the One Big Beautiful Bill, which will increase 45Z generation, and they are exploring additional decarbonization measures [71][74]

Financial Data and Key Metrics Changes - The company delivered stronger-than-expected results with revenue and adjusted EBITDA ahead of guidance, demonstrating strong cash flow and operational efficiency [6][25][37] - Total omnichannel video revenues grew 21% year-over-year, with CTV revenue increasing over 50% year-over-year, contributing approximately 38% of total revenue in Q3 2025 [27][19] - Adjusted EBITDA for Q3 was $11.2 million, representing a 16% margin, while the US GAAP net loss was $6.5 million, or $0.14 per diluted share [32][37] Business Line Data and Key Metrics Changes - Emerging revenue streams grew over 80% year-over-year, now accounting for 10% of total revenue, with Activate revenue growing over 100% [27][14] - CTV significantly outpaced market growth, driven by increased premium supply and the scaling of agency marketplaces [7][19] - Display revenue was down 5% year-over-year, primarily affected by a large DSP's spending decline, but excluding this DSP, display grew in low single digits [28][29] Market Data and Key Metrics Changes - Ad spend from mid-tier DSP partners grew over 25% year-over-year, while APAC and EMEA revenues grew 12% and 7% respectively, offsetting a 14% decline in the Americas [29][30] - The company is seeing a shift in the advertising landscape, with a growing number of advertisers in CTV, moving from traditional TV's limited advertiser base to a much larger pool [54] Company Strategy and Development Direction - The company is focused on an AI-driven strategy across three layers: infrastructure, application, and transaction, which is expected to enhance competitive advantage and drive future growth [8][12][15] - Partnerships with DSPs and the introduction of programmatic guarantee deals are part of the strategy to diversify revenue and enhance operational efficiency [16][18] - The company is also investing in emerging revenue streams, including commerce media and sell-side curation, to expand its market reach [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to the evolving digital advertising landscape, anticipating that any remedies from the Google AdTech antitrust trial will benefit the open internet [38] - The company expects Q4 revenue to be in the range of $73 million to $77 million, with strong growth anticipated in CTV and emerging revenues [36][37] - Management highlighted the importance of operational efficiency and cost management, with a focus on maintaining profitability while investing in growth [30][32] Other Important Information - The company has generated over $390 million in net cash from operations since the beginning of 2021, ending Q3 with $136.5 million in cash and zero debt [33][34] - The repurchase program has seen the buyback of 12.4 million Class A common shares for $180.6 million, reflecting a commitment to long-term shareholder value [34] Q&A Session Summary Question: Can you expand on the topic of SPO and recent moves by companies like The Trade Desk? - The company clarified that it focuses on direct inventory monetization rather than reselling, emphasizing its value in yield optimization and direct connections with publishers [44][46] Question: Can you elaborate on the ability to drive unit cost leverage in COGS? - Management indicated a consistent focus on owning and operating infrastructure to drive down unit costs, with expectations for increased gross margin as revenue reaccelerates [49][50] Question: What trends are observed in the CTV environment and how is the company investing for growth? - The company noted significant growth in CTV, driven by partnerships with premium publishers and a growing advertiser mix, with continued investment in AI to unlock incremental budgets [54][55]

Financial Data and Key Metrics Changes - Paramount's total revenue guidance for 2026 is set at $30 billion, driven by strong growth in direct-to-consumer (D2C) revenue and global profitability, with adjusted EBITDA expected to reach $3.5 billion [8][10] - The company has increased its run rate efficiency target from $2 billion to at least $3 billion [8] Business Line Data and Key Metrics Changes - The D2C segment saw a 24% revenue growth, with a total of 75 million subscribers, and Paramount+ added 1.4 million new subscribers in Q3, bringing the total to 79 million [10][16] - The plan is to grow theatrical output to at least 15 movies per year starting in 2026, with an incremental programming investment of over $1.5 billion across theatrical and D2C platforms [9][10] Market Data and Key Metrics Changes - Paramount+ has achieved the largest U.S. subscription growth among major streamers since 2023, ranking as one of the top three preferred content sources [10] - The company is focusing on scaling its direct-to-consumer business globally, with significant investments in content and technology to enhance user experience [11][17] Company Strategy and Development Direction - The company aims to transform Paramount into a global home for world-class storytelling, focusing on three North Star priorities: investing in growth businesses, scaling the D2C business, and driving enterprise-wide efficiency [6][7] - Paramount is committed to enhancing its technological capabilities to remain competitive in the media landscape, viewing technology as a tool to amplify creativity rather than replace it [11][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve its strategic goals, emphasizing the importance of storytelling and creative partnerships [4][5] - The management highlighted the need for increased investment in content and technology to drive subscriber growth and engagement, particularly in international markets [18][19] Other Important Information - The company is pursuing high-impact partnerships and expanding its creative talent roster, with notable collaborations including the UFC and the Duffer Brothers [9][10] - Paramount is focused on improving operational efficiencies and cash flow generation, with a goal to achieve investment-grade metrics by 2027 [53][55] Q&A Session Summary Question: Can you talk more about your confidence for Paramount+ to gain global scale? - Management highlighted a strong quarter for the D2C business, with significant investments in content and technology to improve user experience and drive subscriber growth [16] Question: How much investment do you plan to put into Paramount Skydance over the next several years? - Management indicated plans for continued investment in growth businesses, with an additional $1.5 billion in content investments planned [23] Question: What is your updated view on your portfolio of networks regarding advertising and cord-cutting trends? - Management noted the distinct differences between broadcast and cable, with CBS being a cornerstone asset that continues to perform well despite overall declines in linear TV [30][32] Question: Can you give us your vision of how tech and entertainment interrelate and how you drive growth? - Management emphasized the goal of becoming the most technologically capable media company, with ongoing initiatives to unify streaming services and improve operational efficiency [39][41] Question: How should we think of the long-term profitability of the DTC business? - Management expects the DTC segment to be profitable next year, with a focus on improving working capital and cash tax rates to enhance free cash flow [71][76] Question: What does the $1.5 billion content investment look like across various categories? - Management confirmed that the investment will be spread across sports, originals, licensing, DTC, and theatrical, with a unified review process for content spending [80]

Financial Data and Key Metrics Changes - Paramount's total revenue guidance for 2026 is set at $30 billion, driven by strong growth in direct-to-consumer (D2C) revenue and global profitability, with adjusted EBITDA expected to be $3.5 billion [8][10] - Paramount+ achieved a 24% revenue growth in Q3, with a total of 75 million subscribers, reflecting a significant increase in engagement and subscriber growth [16][10] Business Line Data and Key Metrics Changes - The company plans to grow theatrical output to at least 15 movies per year starting in 2026, indicating a strategic shift towards enhancing its film production capabilities [9][25] - Incremental programming investments exceeding $1.5 billion are planned across theatrical and direct-to-consumer platforms, aimed at expanding the content pipeline [9][80] Market Data and Key Metrics Changes - Paramount+ has achieved the largest U.S. subscription growth among major streamers, excluding bundles, with 1.4 million new subscribers added in Q3 [10][16] - The company is focusing on scaling its direct-to-consumer business globally, with significant investments in content and technology to enhance user experience and engagement [10][11] Company Strategy and Development Direction - The company aims to transform Paramount into a global home for world-class storytelling, leveraging its diverse entertainment assets and focusing on efficiency and long-term growth [5][6] - Key strategic priorities include investing in growth businesses, scaling the D2C business, and driving enterprise-wide efficiency to enhance free cash flow generation [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve its strategic goals, emphasizing the importance of high-quality storytelling and technology as a core competency [11][12] - The management highlighted the need for increased investment in content and technology to drive subscriber growth and engagement, particularly in the competitive streaming landscape [16][18] Other Important Information - The company has increased its run rate efficiency target from $2 billion to at least $3 billion, reflecting a commitment to operational efficiency [8][9] - Paramount is focusing on integrating its three streaming services into one unified platform to improve user experience and operational efficiency [41][40] Q&A Session Summary Question: Can you talk more about your confidence for Paramount+ to gain global scale? - Management highlighted a strong quarter for the D2C business, with a 24% revenue growth and a focus on increasing content investment to drive engagement and subscriber growth [16][18] Question: How much investment do you plan to put into Paramount Skydance over the next several years? - Management indicated plans for significant investment in content, with an additional $1.5 billion earmarked for programming across various categories [23][80] Question: What is your updated view on your portfolio of networks regarding advertising and cord-cutting trends? - Management noted the stark differences between broadcast and cable, with a focus on leveraging CBS's strength in broadcast while addressing the decline in cable [30][34] Question: How do you see the relationship between technology and entertainment driving growth? - Management emphasized the goal of becoming the most technologically capable media company, with initiatives underway to unify streaming services and improve operational efficiency [39][41] Question: How should we think of the long-term profitability of the DTC business? - Management projected that the DTC segment will be profitable next year and increasingly so in 2026, with a focus on improving working capital and cash tax rates [71][76]