Financial Data and Key Metrics Changes - Worldwide revenue reached $48.7 million in Q3 2025, representing approximately 21% growth year-over-year [4][19] - U.S. revenue grew over 21% to $46.4 million, driven by a procedure volume growth of over 22% [4][19] - Positive adjusted EBITDA of $2.3 million for the quarter, translating to an adjusted EBITDA margin of approximately 5% [6][22] - Gross profit was $38.8 million, an increase of 21.8% year-over-year, with a gross margin of 79.8% [20][21] Business Line Data and Key Metrics Changes - The launch of iFuse TORQUE contributed to notable international revenue growth, with international revenue at $2.3 million, representing 10.2% growth [19] - Double-digit volume growth was observed across all modalities, with a record number of physicians added in the quarter [5][6] - The number of physicians performing procedures using the company's solutions increased by 27% year-over-year, with 1,530 active physicians [14][70] Market Data and Key Metrics Changes - The company anticipates that the finalized 17% increase in reimbursement for office-based SI joint procedures will benefit its interventional business [8] - The new technology add-on payment (NTAP) of over $4,100 represents up to a 30% increase in hospital reimbursement for pelvic fracture fixation in Medicare patients [12][88] Company Strategy and Development Direction - The company is focused on innovation, physician engagement, commercial execution, and operational excellence as key priorities [7][17] - Plans to launch new products in 2026, including a next-generation technology aimed at optimizing physician workflow [9][11] - The company aims to expand its addressable market by developing solutions for compromised bone, leveraging its expertise in sacro-pelvic anatomy [14][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining strong top-line growth and expanding margins, driven by substantial adoption of current products and a promising pipeline [25][41] - The company is optimistic about achieving positive free cash flow in 2026, supported by improved profitability and cash flow from operating activities [23][46] Other Important Information - The company achieved its second consecutive quarter of net cash flow breakeven, ending the quarter with $145.7 million in cash and marketable securities [22][23] - The company has a significant pipeline of novel technologies under development, with expectations to launch several solutions over the next five years [14][78] Q&A Session Summary Question: Discussion on physician density and operating leverage - Management highlighted the importance of physician density and the opportunity to increase procedure types among existing surgeons, with a focus on leveraging the expanded product platform [29][30][32] Question: Guidance update and momentum in Q4 - Management raised the full-year revenue guidance to $198 million-$200 million, citing strong performance and physician growth trends as indicators of continued momentum [38][42][44] Question: Cash burn expectations for the rest of the year - Management indicated expectations of some cash usage in Q4 due to investments in surgical capacity and new product preparations, but expressed confidence in achieving free cash flow in 2026 [46][47] Question: Trends in gross margins and ASP - Management noted that gross margins are expected to stabilize around 78%-78.5%, with ASP remaining stable despite some modest impacts from procedure mix [55][56] Question: TNT and NTAP adoption trends - Management expressed excitement about the NTAP's potential to drive TNT adoption, with ongoing interest from national distributors to expand access to the technology [88][90]

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 the power of its platform [5][23] - 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 [31][32] - Free cash flow for the quarter was $22.8 million, with net operating cash flows of $32.4 million [32] Business Line Data and Key Metrics Changes - CTV revenue grew over 50% year-over-year, driven by increased premium supply and growth in agency marketplaces [5][25] - Emerging revenues increased over 80% year-over-year, contributing to 10% of total revenue in Q3 [25][21] - Omnichannel video revenues grew 21% year-over-year, with CTV contributing approximately 38% of total revenue [25][24] Market Data and Key Metrics Changes - Ad spend from mid-tier DSP partners grew over 25% year-over-year in Q3, while ad spend from the top 10 verticals grew in the single-digit percentages [27][26] - APAC and EMEA revenues grew by 12% and 7% respectively, while the Americas saw a decline of 14% due to reduced spending from a large DSP [28][27] Company Strategy and Development Direction - The company is focusing on AI-driven innovations across three layers: infrastructure, application, and transaction, to enhance its competitive advantage [6][11] - Partnerships with mid-market DSPs and the introduction of programmatic guarantee deals are part of the strategy to diversify and expand the demand-side ecosystem [15][16] - The company aims to lead the next era of Agentic AI advertising while continuing to invest in emerging revenue streams and operational efficiencies [13][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to a rapidly changing digital advertising landscape, emphasizing the importance of AI in driving future growth [23][36] - The company anticipates strong growth in CTV and emerging revenues, projecting Q4 revenue between $73 million and $77 million [34][35] - Management noted that the competitive landscape is likely to shift due to the Google AdTech antitrust trial, which could benefit the open internet and the company [36] Other Important Information - The company has generated over $390 million in net cash from operations since the beginning of 2021, ending the quarter with $136.5 million in cash and zero debt [32][33] - The repurchase program has seen the buyback of 12.4 million Class A common shares for $180.6 million, with $94.4 million remaining authorized for repurchase [33] 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 [40][42] Question: Can you elaborate on the ability to drive unit cost leverage? - The company has consistently driven down unit costs through owning its infrastructure and leveraging AI, expecting to continue this trend [45][46] Question: What evolution has been seen in the CTV environment over the past year? - The company noted significant growth in CTV, driven by partnerships with premium publishers and an expanding advertiser mix [48][50] Question: Are there any trends suggesting The Trade Desk is increasingly going direct? - The company reported that it is working directly with premium publishers and has taken steps to stabilize spending from The Trade Desk [59][61] Question: What impact is AI having on publisher traffic? - The company indicated limited impact from AI on publisher traffic, with opportunities emerging from new AI search experiences [64][66]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $265.1 million, down from $274.6 million in Q3 2024, reflecting a comparable restaurant revenue decline of 1.2% [18][19] - Restaurant-level operating profit as a percentage of restaurant revenue increased by 90 basis points year-over-year to 9.9%, driven by labor efficiency gains [19] - Adjusted EBITDA for Q3 2025 was $7.6 million, an increase of $3.4 million compared to Q3 2024, attributed to cost efficiency gains and menu price increases [20] Business Line Data and Key Metrics Changes - The off-premise business accounted for approximately 25% of sales in Q3 2025, with traffic growth of 2.9% [11] - The Big Yum Burger deal launched in Q3 contributed to a 250-basis point sequential traffic improvement from Q2 to Q3 [7][19] - The company achieved a 1.7% increase in net menu price, offset by a 3% decline in guest traffic [18] Market Data and Key Metrics Changes - Guest traffic run rate improved from approximately down 7% at the beginning of Q3 to negative 1.4% by the end of the quarter [8] - The company expects comparable restaurant sales to decline approximately 3% in Q4 2025 [21][22] Company Strategy and Development Direction - The company is focused on its "first choice plan" to enhance guest experience, operational efficiency, and profitability [4][5] - A data-driven marketing initiative was launched to engage guests more personally and effectively, with plans to expand this approach [10][39] - The company is exploring various options to strengthen its balance sheet, including debt refinancing and refranchising efforts [12][14] Management's Comments on Operating Environment and Future Outlook - Management noted that while guest traffic trends have slowed recently, they remain optimistic about regaining traction as marketing spend increases [22][23] - The company is committed to maintaining a balance between investment priorities and profitability, expecting G&A savings of $3-$4 million in 2025 [12][20] - Management expressed confidence in the operational improvements and the positive impact of the Big Yum initiative on traffic trends [24][25] Other Important Information - The company completed refreshes in 20 restaurants during Q3, which are expected to enhance guest experience and drive sales [15][16] - Management announced the appointment of Jesse Griffith as Chief Operations Officer, recognizing the contributions of the operations team [26] Q&A Session Summary Question: Can you provide insights on the Big Yum initiative and its impact on sales? - The Big Yum deal is mixing at about 8% of total sales, performing as expected [28][29] Question: What are the expectations for food and beverage costs moving forward? - The company anticipates maintaining a 25% cost of goods in Q4, with measures in place to mitigate beef inflation [29] Question: What was the financial cost of extending the current debt agreement? - The extension cost was 50 basis points, deemed reasonable for the additional time [30] Question: How is the refranchising initiative progressing? - Interest in refranchising remains strong, with proposals being evaluated, but no firm announcements yet [31] Question: What are the expectations for G&A sustainability? - G&A levels are expected to remain similar to Q3, reflecting efficiencies captured this year [45] Question: Can you elaborate on the comp guidance for Q4? - The company expects same-store sales and traffic to decline by 3% in Q4, with a mix of menu price increases and traffic impacts [47]

Financial Data and Key Metrics Changes - In Q3 2025, GAAP revenues increased by 6% quarter over quarter to $50.6 million from $47.6 million in Q2 2025 [11] - The company recorded a GAAP net loss of $455 million in Q3 2025 compared to a net loss of $18.4 million in Q2 2025 [16] - Non-GAAP adjusted EBITDA improved by 25% quarter over quarter, totaling $18.1 million from $14.5 million in Q2 2025 [17] Business Line Data and Key Metrics Changes - The company recognized $7.2 million of HPC lease revenue at Wolf Den and CV1, with intra-quarter lease commencement resulting in 22.5 megawatts of energized hosting capacity [11] - Self-mined Bitcoin decreased by 22% to 377 Bitcoin in Q3 2025 from 485 Bitcoin in Q2 2025 [12] - Operating expenses increased by 28% quarter over quarter to $4.5 million in Q3 2025 from $3.5 million in Q2 2025 [13] Market Data and Key Metrics Changes - Power prices in upstate New York normalized to $4.7 per kilowatt-hour in Q3 2025, in line with historical levels [12] - The company has evaluated over 150 potential sites for expansion, narrowing it down to a select group that meets strict criteria [10] Company Strategy and Development Direction - TeraWulf signed a 10-year agreement with FluidStack backed by Google, representing average annual revenue of approximately $670 million [4] - The company increased its annual target for new HPC signings from 100-150 megawatts per year to 250-500 megawatts per year [9] - A joint venture with FluidStack and Google was announced to develop the Abernathy HPC campus in Texas, adding 168 megawatts of new HPC capacity [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for high-performance compute, noting significant interest from hyperscalers and cloud companies [66] - The company is focused on disciplined execution and thoughtful expansion to create sustainable long-term value for shareholders [91] - Management highlighted the importance of credit quality in customer relationships and the ongoing dialogue with potential customers [28] Other Important Information - The company closed $3.2 billion in senior secured financing to fully fund the Lake Mariner high-power compute buildout [4] - As of September 30, the company held $712.8 million in cash and restricted cash, with total assets amounting to $2.5 billion [17] Q&A Session Summary Question: Can you talk about the key sites you're close to closing on? - Management indicated they are very close to finalizing at least two additional sites, focusing on regional diversity for long-term agreements [21] Question: Can you reconcile the HPC margins? - Management explained that the HPC margin was about 72%, but adjusting for certain expenses would bring it closer to the previously discussed 85% [23] Question: How is the company thinking about customer diversity? - Management expressed satisfaction with the credit quality of current customers and indicated ongoing discussions with potential new customers [27] Question: Can you clarify the Abernathy joint venture opportunity? - Management detailed the collaborative relationship with FluidStack and Google, emphasizing the strategic fit and potential for future projects [30] Question: What are the penalties for missing delivery timelines? - Management stated that there are significant grace periods in the leases, with minimal penalties for the first 30-90 days [73] Question: How is the company able to add more power pipeline? - Management highlighted long-term relationships and strategic site selection as key factors in securing additional capacity [76]

Financial Data and Key Metrics Changes - The company reported total revenue guidance of $30 billion for 2026, driven by strong growth in direct-to-consumer (D2C) revenue and global profitability, with adjusted EBITDA expected to be $3.5 billion [7] - The run rate efficiency target has been increased from $2 billion to at least $3 billion [7] Business Line Data and Key Metrics Changes - The D2C segment achieved a total of 79 million subscribers, adding 1.4 million new subscribers in Q3, with revenue growth of 24% [9][14] - The company plans to grow theatrical output to at least 15 movies per year starting in 2026, indicating a significant increase in film production [8][24] Market Data and Key Metrics Changes - Paramount+ has achieved the largest U.S. subscription growth among major streamers, excluding bundles, and ranks as one of the top three preferred content sources among streaming services [9] - The company is focusing on international markets, particularly leveraging Pluto as a low ARPU asset to scale DTC business [18] Company Strategy and Development Direction - The company aims to transform Paramount into a global home for world-class storytelling, focusing on scaling its D2C business, investing in growth areas, and driving enterprise-wide efficiency [4][5] - Key priorities include investing in creative storytelling, scaling the D2C business globally, and enhancing operational efficiency to generate long-term free cash flow [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve its strategic goals and emphasized the importance of high-quality storytelling and technology as core competencies [10][49] - The management highlighted the need for significant investments in content and technology to drive subscriber growth and engagement [16][39] Other Important Information - The company is pursuing high-impact partnerships and expanding its creative talent roster, including collaborations with notable creators and franchises [8][9] - The integration of technology across platforms is a priority, with plans to unify multiple streaming services into one platform to enhance user experience and operational efficiency [36][37] Q&A Session Summary Question: Confidence in Paramount+ gaining global scale and content spend - Management highlighted a strong quarter for the D2C business, with a focus on increasing content investment to drive engagement and subscriber growth [14][16] Question: Investment plans for Paramount Skydance and studio turnaround - Management confirmed plans for significant investment in content, with a goal to increase film output and leverage creative partnerships for growth [21][24] Question: Updated view on TV media segment and advertising trends - Management noted the distinct trends between broadcast and cable, emphasizing the importance of CBS as a cornerstone asset while addressing the decline in cable [28][30] Question: Interrelation of tech and entertainment and revenue growth tools - Management discussed initiatives to improve technology capabilities, including unifying streaming services and enhancing ad tech to drive revenue growth [36][40] Question: M&A philosophy and balance sheet goals - Management stated a focus on building rather than acquiring, with a disciplined approach to M&A that aligns with long-term value creation [49][50] Question: UFC strategy and return on investment - Management expressed excitement about the UFC partnership, highlighting its potential to drive subscriber growth and engagement across platforms [56][58] Question: Long-term profitability of the DTC business - Management indicated that the DTC segment will be profitable next year, with a focus on improving working capital and cash tax rates to enhance free cash flow [67][71]

Financial Data and Key Metrics Changes - Net revenue increased by 2.9% year over year to $307 million, up from $298.4 million in the prior year quarter [11] - Gross profit rose by 0.5% to $50.4 million, compared to $50.2 million in the prior year quarter [11] - Adjusted EBITDA surged by 41.5% year over year to $11.7 million, compared to $8.3 million in the prior year quarter [12] - Net loss improved to $0.9 million from a loss of $3.8 million in the third quarter of 2024 [12] - Adjusted net income increased to $4.3 million, compared to $2.2 million in the prior year period [13] Business Line Data and Key Metrics Changes - The increase in net revenue was primarily driven by volume increases and improved pricing in the meat, poultry, and seafood categories [11] - Gross profit margin remained relatively consistent at 16.4%, compared to 16.8% in the same period in 2024, due to a higher proportion of sales from lower-margin products, particularly seafood [12] Market Data and Key Metrics Changes - The company experienced lower foot traffic consistent with broader industry trends, but this was offset by strong volume in select markets and pricing actions taken [5] - Specific markets, such as Salt Lake City, showed effective product rationalization leading to better business performance [22] Company Strategy and Development Direction - The company is focused on diversifying its supplier base and exploring alternative sourcing strategies to ensure continuity and cost-effectiveness in its supply chain [5] - Strategic facility enhancements are underway, including the renovation of the Charlotte Distribution Center and the expansion of cold storage capacity in Atlanta, which is expected to double capacity in the region [8] - M&A remains a core pillar of the company's growth strategy, with a focus on expanding geographic footprint and capturing operational synergies [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth strategy despite ongoing macro challenges, including tariff pressures and shifts in consumer spending behaviors [4] - The company anticipates Q4 results to be similar to Q3, with a strong foundation built for future growth [5] - The digital transformation initiative is expected to enhance operational efficiency and customer service through a unified ERP platform [6] Other Important Information - The company announced the acquisition of a Chicago warehouse, which is expected to improve operational efficiency and reduce facility costs [8] - The strategic acquisition is part of the ongoing transformation plan to strengthen organic growth through cross-selling opportunities [8] Q&A Session Summary Question: Capacity increases for 2026 - Management indicated that the cold storage capacity in Atlanta will effectively double, moving from a 100,000 sq ft warehouse to approximately 190,000 sq ft [18] Question: Cost savings from restructuring the Salesforce - Management emphasized that the restructuring aims for efficiency while maintaining customer understanding and service quality, with normalization expected by mid-Q1 2026 [19][20] Question: Monthly cadence and government shutdown impact - Management noted that Q3 followed the trend of Q2, with some impact from tariffs and government shutdowns affecting specific markets like Virginia [21] Question: Maintenance CapEx and organic growth outlook - Management stated that typical maintenance CapEx fluctuates between $10-$15 million annually, with potential increases due to strategic acquisitions [27] - Organic growth is expected to ramp up in 2026, particularly in the frozen seafood segment in the Southeast market [29]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $9.1 million, down from $9.8 million in Q3 2024, primarily due to lower transient volumes and ongoing construction impacts [16][19] - Net Operating Income (NOI) was $5.5 million, slightly up sequentially but down from $6.1 million year-over-year, reflecting lower transient volumes [18] - Revenue per available stall (revpass) was $212, consistent with Q2 2025 but down 7.1% from $228 in Q3 2024 [17] Business Line Data and Key Metrics Changes - Contract parking volumes increased 1.4% sequentially and 8% year-to-date, while transient volumes were down approximately 5% year-over-year [5][6] - Residential monthly contracts increased approximately 75% year-over-year, now representing about 35% of trailing 12-month management agreement revenue [9] Market Data and Key Metrics Changes - Several core downtown markets experienced temporary headwinds, including lower hotel occupancy and event cancellations, impacting transient traffic [6][11] - Cleveland showed positive trends with transient growth of 8% in Q3 2025 compared to Q3 2024, alongside strong growth in residential and commercial monthly contracts [9][10] Company Strategy and Development Direction - The company is focusing on optimizing its portfolio by segmenting core and non-core assets, with plans to sell approximately $30 million in non-core assets by year-end [12][13] - A strategic emphasis on residential parking is seen as a long-term growth driver, with ongoing investments in EV charging infrastructure [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term value creation despite short-term challenges, particularly in markets like Cincinnati and Nashville where redevelopment projects are underway [21][22] - The company believes that the portfolio is undervalued compared to its net asset value (NAV) and expects recognition of this value as temporary disruptions subside [23] Other Important Information - The company completed a $100 million refinancing via asset-backed securitization, enhancing capital flexibility and allowing for the sale of non-core assets [19][20] - The published NAV is $7.25 per share, with ongoing stock repurchases as a key focus area for capital deployment [20] Q&A Session Summary Question: Top-line performance outlook for Q4 2025 - Management indicated a mixed outlook, with some easing expected in Denver and Nashville due to ongoing construction projects [25] Question: Use of proceeds from $30 million asset sales - Proceeds will primarily focus on repaying the line of credit in the near term, with potential for acquisitions evaluated monthly [26][27] Question: Impairment details for the quarter - An impairment of $2.5 million was related to normal fair value testing coinciding with the asset rotation strategy [28][30] Question: Attractiveness of the ABS transaction - The ABS transaction was attractive due to the flexibility it provides for selling non-core assets, which were previously restricted under CMBS debt [31][40] Question: Impact of transient traffic disruptions - Management noted that transient traffic disruptions are largely due to ongoing construction, which is expected to have long-term positive effects [35] Question: Actions to improve retention and utilization - The focus is on increasing utilization through monthly contracts and stabilizing the base before leveraging pricing [36][38] Question: Changes in residential monthly contract growth - The leasing pace for apartments is slower than expected, impacting contract additions, but pricing remains competitive [39] Question: NOI impact from asset sales - The expected NOI impact from the $30 million in sales is nominal, under $1 million [58]

Financial Data and Key Metrics Changes - Q3 2025 revenue reached $33.3 million, a 27-fold increase year-over-year compared to $1.2 million in Q3 2024, driven by strong execution on projects in Australia and initial contributions from the Asset Vault assets [17] - GAAP gross profit for Q3 2025 was $9 million, improving nearly 18 times from the prior year, resulting in a gross margin of 27% for the quarter and 32.6% year-to-date [17] - Adjusted EBITDA loss narrowed to $6 million in Q3 2025 from a loss of $14.7 million in the prior year, reflecting higher revenue and gross profit [18] Business Line Data and Key Metrics Changes - The company has built, commissioned, and is now operating two initial projects in Texas and California, contributing to the revenue for the first time in Q3 [4] - The contract backlog remains near $1 billion, more than doubling this year and about four times what it was from the same time last year [12] - The company expects to deliver approximately $150 million in revenue in Q4 2025, driven by ongoing projects in Australia and the U.S. [12] Market Data and Key Metrics Changes - The total developed pipeline for advanced projects is around $2.1 billion, or roughly 8.7 gigawatt-hours [20] - The company anticipates receiving $40 million in investment tax credit proceeds in Q4 2025, contributing to an expected cash balance of $75 million to $100 million by year-end [18][21] Company Strategy and Development Direction - The launch of the Asset Vault platform marks a significant strategic move, focusing on developing, owning, and operating energy storage assets [4][22] - The company aims to accelerate deployment of 1.5 gigawatts in attractive priority markets, with a clear monetization strategy supported by long-term offtake agreements [22][23] - Energy Vault is positioned to generate predictable, recurring, and high-margin cash flows through the vertically integrated ecosystem created by the Asset Vault [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the volatile operating environment, including tariff impacts and macroeconomic uncertainties, but remains confident in maintaining guidance due to ongoing project deliveries [35] - The company is experiencing a target-rich environment for asset acquisition, indicating strong opportunities despite market challenges [35] - Management emphasizes the importance of agility and operational expertise in navigating market fluctuations and maintaining a diverse project portfolio [36] Other Important Information - Energy Vault has improved its ESG scores, placing in the top 98% of all companies reviewed by S&P Global, and maintaining its leadership in the energy storage segment [15] - The company has completed a $300 million preferred equity agreement to fund the Asset Vault, which is expected to significantly enhance cash flow and project financing capabilities [18][22] Q&A Session Summary Question: R&D expense decline and future capitalization - Management noted that the decline in R&D expenses reflects cost-tightening measures and a shift in focus towards activities related to Asset Vault [30][31] Question: Customer acquisition pace amid macro uncertainty - Management indicated that while there have been delays due to market volatility, they are holding their guidance and seeing a rich environment for asset opportunities [34][35] Question: Backlog inclusion of recently announced projects - The current backlog does not include the recently announced projects in Albania, but these will be added to both the backlog and Asset Vault once finalized [40][45] Question: Increase in development pipeline - The increase in the development pipeline reflects stage four or five opportunities that have been shortlisted or awarded, with specific projects not disclosed [46]

Financial Data and Key Metrics Changes - As of September 30, 2025, the company's cash, cash equivalents, and marketable securities totaled approximately $98.6 million, which is expected to cover anticipated expenses into the fourth quarter of 2026 [17] - Revenue for Q3 2025 was zero, compared to approximately $2.3 million for Q3 2024, and revenue for the first three quarters of 2025 was zero, compared to approximately $11.1 million for the same period in 2024 [18] - The net loss for Q3 2025 was approximately $24.6 million, compared to a net loss of approximately $12.6 million for Q3 2024, and the net loss for the first three quarters of 2025 was approximately $74.9 million, compared to approximately $33.4 million for the same period in 2024 [19] Business Line Data and Key Metrics Changes - The company has administered over 800 infusions to approximately 150 boys and young men with Duchenne muscular dystrophy, demonstrating a strong and consistent safety profile for deramiocel [8] - The HOPE-3 phase 3 clinical study focuses on non-ambulant individuals, a patient population that has historically had limited clinical research dedicated to it [4] Market Data and Key Metrics Changes - The company is preparing for potential global expansion while closely monitoring evolving U.S. and international pricing policies [15] - The FDA has classified the resubmission of the BLA as Type 2, which means the review period can be up to six months, but there is precedent for faster review times [11] Company Strategy and Development Direction - The company aims to bring forward the first therapy that directly addresses Duchenne muscular dystrophy-associated cardiomyopathy, emphasizing the life-limiting cardiovascular impact of the disease [8] - The company is engaging both neurology and cardiology specialists to ensure an integrated approach to patient care should deramiocel receive approval [15] - The company is advancing its StealthX program under Project NextGen to develop next-generation vaccines for COVID-19 and other infectious threats [16] Management's Comments on Operating Environment and Future Outlook - Management remains highly motivated to achieve approval for deramiocel as early as possible in 2026, well ahead of the September 30, 2026 deadline for priority review voucher eligibility [11] - Management expressed confidence in the potential of deramiocel to stabilize disease progression and preserve both muscle and heart function [12] Other Important Information - The company has published a peer-reviewed paper detailing new mechanistic insights into deramiocel's mechanism of action, reinforcing the biologic rationale for its development program [12] - The San Diego commercial facility is fully operational and preparing for GMP production activities, addressing all CMC-related items cited in the CRL [14] Q&A Session Summary Question: What to expect from the upcoming HOPE-3 data? - The company will release top-line data including primary and key secondary endpoints as soon as available and will host a conference call to explain the implications of the data [22] Question: Are there any statistical changes in the study regarding left ventricular ejection fraction? - The study was always powered to measure ejection fraction, and the results from previous studies provide strong support for this analysis [23] Question: How will the statistical analysis plan handle the primary and secondary endpoints? - The primary endpoint remains the performance of the upper limb, and the analysis will focus on both combined cohorts and specifically on Cohort B [25] Question: What is the FDA's view on cohort B? - The focus on cohort B is due to its importance in addressing manufacturing concerns and ensuring the efficacy data is tied to the approved facility [41] Question: What is the potential for label expansion upon approval? - The company will discuss potential label expansion during conversations with the FDA, contingent on the data outcomes [50]

Financial Data and Key Metrics Changes - Comtech reported a significant improvement in operating cash flow, achieving $11.4 million in Q4 2025, up from $2.3 million in Q3 2025, marking the first positive cash flow since fiscal 2023 [4][39] - The company ended the fiscal year with $47 million in liquidity, a notable increase from $27 million in March 2025, reflecting improved operational cash flow and better terms with lenders [5] - Adjusted EBITDA improved sequentially from a negative $30.8 million in Q1 to positive $13.3 million in Q4 2025, indicating a turnaround in financial performance [9][38] - Consolidated net sales for fiscal 2025 were $499.5 million, down from $540.4 million in fiscal 2024, primarily due to the wind down of legacy contracts [30][31] Business Line Data and Key Metrics Changes - The Satellite and Space Communications segment generated over $20 million in operating cash flow in Q4 2025, a significant improvement from negative cash flow in previous quarters [19][20] - The Allerium segment saw adjusted EBITDA grow 37% to $13.7 million in Q4 2025, driven by higher net sales and gross profit from emergency communication solutions [23][24] Market Data and Key Metrics Changes - Comtech's funded backlog as of July 31, 2025, was $672.1 million, down from $798.9 million a year earlier, reflecting a decrease in net bookings impacted by a debooking in Q3 2025 [35] - The company secured a multi-year contract extension valued over $130 million from its largest customer, reinforcing its position in the emergency communication market [24][48] Company Strategy and Development Direction - Comtech is focused on optimizing cash flow rather than just revenue growth, which is expected to strengthen its financial position and operational efficiency [13][14] - The company has implemented a series of transformation initiatives aimed at improving corporate governance, executive leadership, and operational efficiency [11][12][15] - The Allerium segment is expanding its product offerings and has opened a new innovation lab to drive next-generation R&D in public safety technology [25][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's improved financial health and operational performance, highlighting a cultural shift towards accountability and cash flow optimization [4][16] - The company anticipates continued improvements in fiscal 2026, despite potential impacts from the U.S. government shutdown and the phase-out of low-margin contracts [44][45] Other Important Information - Comtech has made significant progress in remediating material weaknesses in internal controls, which has led to improved reporting and operational processes [10] - The company has amended its credit facilities to enhance financial flexibility, including a $35 million incremental subordinated loan [40][42] Q&A Session Summary Question: Regarding the $130 million carrier contract, can you help model some of the economics? - Management confirmed it is a long-term commitment with a major customer, providing a foundation for future growth [48][49] Question: How should we think about the quarterly cadence through fiscal 2026? - Management indicated that while they do not provide guidance, they expect business to improve throughout fiscal 2026 [50] Question: Can you elaborate on the book-to-bill ratio improvement? - Management noted that the recent large contract award contributed to the improvement, and they are optimistic about international market success [51] Question: What is the status of the EDIM certification? - Management confirmed that the program is progressing well, with expectations to begin the certification process before year-end [52][53]