Financial Data and Key Metrics Changes - Credo reported revenue of $135 million for Q3 2025, representing an 87% sequential increase and a 154% year-over-year increase [8][32] - Non-GAAP gross margin was 63.8% for Q3, with product gross margin (excluding product engineering services) at 62.4%, up over 200 basis points sequentially and over 900 basis points year-over-year [32][66] Business Line Data and Key Metrics Changes - The AEC product line achieved strong triple-digit sequential growth, driven by the largest hyperscale customer [16][33] - The product business generated $132 million in revenue for Q3, up 91% sequentially and 155% year-over-year, with AECs becoming the de facto standard for intra-rack connections [32][36] - The optical DSP business is on track to meet growth objectives, with revenue driven by 50-gig and 100-gig designs for AOC and transceiver applications [20][22] Market Data and Key Metrics Changes - The total addressable market (TAM) for PCIe retimers is expected to exceed $1 billion by 2027, with Credo well-positioned to capture market share [28][28] - The demand for faster, more reliable, and energy-efficient connectivity solutions is rapidly expanding, particularly in AI workloads [10][29] Company Strategy and Development Direction - Credo's multi-tiered innovation strategy focuses on SerDes technology, integrated circuit design, and system-level solutions, which are critical for addressing bandwidth challenges [11][12][14] - The company plans to expand its solutions to the PCIe protocol, addressing a larger connectivity opportunity with AI scale-out and scale-up networks [15][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the expanding market opportunity for high-speed connectivity driven by AI investments [29][30] - The company anticipates continued revenue growth based on customer forecasts, new qualifications, and design engagements [19][28] Other Important Information - The largest customer accounted for 86% of revenue in Q3, with expectations of diversifying the customer base in the coming quarters [35][41] - Credo has achieved volume production with three hyperscalers and is in qualification with two additional hyperscalers [18][44] Q&A Session Summary Question: What is the size of the largest customer and the adoption of AEC? - The largest customer accounted for 86% of revenue, and AEC opportunities are expanding significantly [39][40] Question: How does the company view the shift towards inference in AI? - The inference market presents a larger opportunity for AEC due to increased deployments [45][46] Question: Are there plans to move into the switching ecosystem? - Moving into PCIe switching is a natural progression, but the focus remains on retimers and AECs for now [48][51] Question: What is driving the uptick in gross margins? - The increase in gross margins is primarily driven by scale and the roll-off of contra revenue associated with Amazon [64][66] Question: How does the company view competition in the AEC space? - Credo focuses on being the best partner to customers, emphasizing innovation and reliability [125][127] Question: What is the outlook for new customers and their ramp-up? - New customers are expected to ramp up in fiscal '26, with multiple projects anticipated [96][135]

Financial Data and Key Metrics Changes - Box achieved revenue of $280 million in Q4 2025, up 6% year over year, or 8% in constant currency [10] - For fiscal 2025, revenue was $1.09 billion, up 5% year over year, and operating margin expanded by 320 basis points to 28% [11][37] - Q4 operating margin was 27.3%, and EPS was 42 cents, exceeding guidance by one cent [10][47] - Free cash flow for fiscal 2025 reached a record $305 million, up 13% year over year [37] Business Line Data and Key Metrics Changes - The launch of the Enterprise Advanced plan was a significant milestone, combining multiple products into a single offering [11][21] - The attach rate for suites in large deals was 87%, up from 81% a year ago, with suites now representing 60% of total revenue in Q4 [30][38] - The number of customers paying at least $100,000 annually increased by 8% year over year to approximately 1,920 [38] Market Data and Key Metrics Changes - Box's remaining performance obligations (RPO) grew by 12% year over year to $1.5 billion, indicating long-term customer commitment [40] - Q4 billings were $399 million, up 5% year over year, exceeding expectations despite a minor FX headwind [42] Company Strategy and Development Direction - The company is focusing on AI-driven solutions, emphasizing the importance of intelligent content management and automation [15][20] - Box plans to enhance its AI capabilities and expand its partner ecosystem to drive growth [58][59] - The company aims to leverage its intelligent content management platform to transform enterprise workflows [22][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic macro environment but expressed confidence in Box's ability to help customers drive efficiency and automation [78] - The net retention rate is expected to improve from 102% to 103% by the end of FY 2026, driven by pricing improvements and customer expansion [43][81] - Management highlighted the importance of AI in expanding the customer base and enhancing product offerings [120][122] Other Important Information - The company repurchased approximately 7.6 million shares for about $212 million in FY 2025, representing roughly 70% of free cash flow generation [48] - Box plans to provide more details on its roadmap and growth strategy during the upcoming financial analyst day on March 18th [34] Q&A Session Summary Question: Early momentum with Enterprise Advanced - Management was pleased with the results in Q4 for Enterprise Advanced, noting strong customer interest despite a short rollout period [66][68] Question: Macro environment impact on purchasing - Management acknowledged the dynamic macro environment but emphasized that Box's solutions are positioned to help customers drive efficiency [78] Question: Components of net retention rate - Management indicated that pricing improvements and stable churn rates are key drivers for expected net retention rate growth [81] Question: Core use cases for Enterprise Advanced - Management highlighted use cases such as AI-powered document processing and no-code app functionality as significant drivers of customer interest [92][94] Question: Go-to-market investments - Management discussed a methodical approach to go-to-market investments, focusing on key industries and system integrators [101][102] Question: Revenue seasonality and guidance - Management confirmed that Q1 revenue is expected to be lower due to a leap year impact but anticipates gradual acceleration in revenue growth throughout the year [116]

Financial Data and Key Metrics Changes - For Q4 2024, net revenue from continuing operations was $10.4 million, representing an 11.6% increase over the prior year period [43][44] - Full year 2024 net revenue totaled $38 million, with a net loss of approximately $6.5 million for the year [45][46] - Total operating expenses for Q4 were $12.3 million, down from $15.5 million in the prior year [45] Business Line Data and Key Metrics Changes - Net revenue by product for Q4 2024 included $4.4 million for Kristalose, $2.4 million for Sancuso, $2.1 million for Vibativ, and $1.4 million for Caldolor [44] - Full year product revenue totaled $15.3 million for Kristalose, $9 million for Sancuso, $6.9 million for Vibativ, and $5 million for Caldolor [45] Market Data and Key Metrics Changes - Vibativ received approval in China, expanding its international business, and shipments began to Saudi Arabia [14] - Kristalose saw growth due to new Medicaid coverage in several states, including Virginia, Louisiana, and Maine [23] Company Strategy and Development Direction - The company aims to acquire and commercialize a portfolio of branded pharmaceuticals while expanding its sales organization and development pipeline [11][12] - Cumberland Emerging Technologies (CET) is a joint initiative with Vanderbilt University to enhance the development pipeline [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress of clinical studies for ifetroban and its potential to benefit many patients [54] - The company expects double-digit revenue growth and positive cash flow from operations in the upcoming year [57] Other Important Information - The company continues to hold $53 million in tax net operating loss carryforwards, primarily from prior stock option exercises [52] - Cumberland has an active acquisition initiative to seek additional FDA-approved brands [56] Q&A Session Summary - No questions were raised during the Q&A session, and management encouraged private discussions with shareholders if desired [60]

Financial Data and Key Metrics Changes - Total revenue for 2024 increased by 22% to $79.9 million compared to $65.4 million in 2023, with record quarterly revenue reported in Q4 [10][31] - Q4 2024 revenue was $21.5 million, representing a 19% growth compared to $18 million in Q4 2023, driven primarily by increased sales of the RNS system [30][31] - Gross margins for Q4 2024 were 75.4%, slightly up from 75.2% in Q4 2023, with improvements attributed to increased RNS product sales [31][34] Business Line Data and Key Metrics Changes - RNS system sales grew by 27% in Q4 2024, excluding contributions from Nautilus study cases in Q4 2023 [30] - Revenue from Dixie Medical products accounted for approximately 17% of total revenue in 2024, up from 15% in 2023 [31] Market Data and Key Metrics Changes - The core market opportunity within level four comprehensive epilepsy centers is estimated at approximately $2 billion annually [12] - The Project CARE initiative has begun to show positive trends, with increased implants and referrals contributing to revenue growth in the second half of 2024 [13][14] Company Strategy and Development Direction - The company’s growth strategy focuses on expanding adoption within level four comprehensive epilepsy centers, enhancing service delivery through Project CARE, and broadening indications for the RNS system [11] - Key development programs include ongoing clinical studies for idiopathic generalized epilepsy and pediatric focal epilepsy, with positive safety and effectiveness data expected to support regulatory approvals [15][17][20] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a revenue growth rate of over 20% annually over the next three years while aiming for cash flow breakeven [41] - The company anticipates total revenue for 2025 to be in the range of $92 million to $96 million, representing a 15% to 20% increase over 2024 [37] Other Important Information - The company completed a public offering that raised approximately $69.8 million, with $49.5 million used to repurchase shares from an early investor [35][26] - The cash and short-term investments balance as of February 28, 2025, is approximately $68.6 million, expected to support operations until achieving cash flow breakeven [36] Q&A Session Summary Question: Guidance for 2025 - Management discussed factors influencing revenue guidance, including execution of the three-part strategy and expansion of Project CARE [44][45] Question: Impact of Project CARE - Management noted meaningful impacts from Project CARE, with increased referrals and implants observed in Q4 [48] Question: Capital Prioritization - Management emphasized investment in expanding adoption within level four centers and direct-to-consumer efforts as key priorities for 2025 [52][54] Question: Gross Margin Trends - Management highlighted ongoing volume increases and pricing opportunities as primary drivers for gross margin improvement [58][61] Question: Indication Expansion and Reimbursement - Management confirmed established reimbursement for current indications and plans to work with payers to expand coverage for new indications [66] Question: Revenue Cadence for 2025 - Management expects a steady progression of growth throughout the year, similar to previous years [70] Question: Multiple Implants from New Accounts - Management confirmed seeing multiple implants and referrals from new accounts, indicating strong economic viability for RNS outside level four centers [75][76] Question: Pediatric Treatment Dynamics - Management explained that pediatric treatment dynamics would be similar to adult patients, focusing on the type of epilepsy rather than age [96] Question: Manufacturing Capacity - Management stated that manufacturing capacity is sufficient to meet anticipated demand [99] Question: Nautilus Study Data Presentation - Management plans to coordinate the publication and presentation of Nautilus data with relevant agencies and societies [105][108]

Financial Data and Key Metrics Changes - Flutter Entertainment reported a revenue growth of 19% and adjusted EBITDA of $482 million, which is 26% higher than the previous year [9][26] - The company generated a net income of $156 million, with earnings per share increasing by 5.59% to $0.45 [26][27] - Adjusted EPS, excluding certain fair value movements, increased by 67% due to a tax credit [27][28] Business Line Data and Key Metrics Changes - In the U.S., revenue increased by 14%, with adjusted EBITDA of $163 million, driven by a 43% growth in iGaming [29][30] - Sportsbook revenue grew by 8%, impacted by adverse sports results, while handle growth moderated to 12% [30][31] - International revenue grew by 14%, with UKI revenue up 20%, driven by strong sportsbook and iGaming performance [31][32] Market Data and Key Metrics Changes - The U.S. sportsbook GGR market share reached 43%, and iGaming GGR market share was 26% [10] - In the UKI market, Flutter increased its market share by 4 percentage points over the last two years [19] - Italy's Sisal brand saw online revenue growth of 41%, benefiting from favorable sports results [33] Company Strategy and Development Direction - Flutter aims to leverage its "Flutter Edge" to enhance product offerings and maintain market leadership, particularly in the U.S. [7][24] - The company plans to continue expanding into new markets, with acquisitions like Snai and NSX expected to enhance scale and diversification [9][24] - Flutter is focused on product innovation, including the launch of new features and loyalty programs to drive customer engagement [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. business's strength and the potential for continued customer acquisition [12][17] - The company is monitoring regulatory changes and potential tax increases in various states, believing it is well-positioned to mitigate impacts [18][22] - Flutter anticipates strong growth in 2025, with existing state revenue and adjusted EBITDA expected to grow by 33% and 176%, respectively [36][37] Other Important Information - Flutter's cash flow from operating activities increased by 67%, with free cash flow growth of 175% [34][35] - The company plans to repurchase up to $1 billion in shares across 2025 [36] - Flutter is on track to deliver $300 million in annualized cost savings by 2027 [44] Q&A Session Summary Question: Can you discuss the $90 million of investment losses in new states? - Management expects to launch Missouri in Q4 and Alberta in Q1 2026, with Missouri's costs around $80 million and Alberta's around $10 million [50][51] Question: What are the customer acquisition trends? - Management is pleased with customer acquisition opportunities and believes they can continue to grow the business [52] Question: What is the outlook for prediction markets? - Management sees potential in prediction markets but emphasizes the richness of their current sportsbook offerings [54] Question: How are customer acquisition trends between iGaming and sportsbook? - Management reports strong growth in iGaming, driven by product improvements and customer engagement [58] Question: What is the status of the Italian lottery bid? - Management is considering bidding for the lotto contract in Italy, evaluating the financial returns [63][64] Question: What are the early learnings from the Your Way product? - Early engagement with the Your Way product has been strong, with significant customization appealing to customers [71][72] Question: How does the company view handle growth in 2025? - Management does not obsess over handle growth, focusing instead on revenue and EBITDA, which are trending positively [98][100] Question: What is the impact of promotional reinvestment in the U.S.? - Management is disciplined in allocating promotional spending to ensure good returns, with a focus on customer acquisition [125][126] Question: Are there signs of consumer weakness in older U.S. states? - Management does not see any signs of consumer weakness and believes the business is resilient in economic downturns [132][133] Question: What is the strategy for media rights partnerships? - Management is thoughtful about media rights, leveraging their scale to negotiate favorable contracts [137]

Financial Data and Key Metrics Changes - Rigel Pharmaceuticals reported record sales of $145 million for 2024, representing a 39% increase compared to 2023 [10][20] - The company achieved a net income of $17 million for the full year, a significant turnaround from a net loss of $25.1 million in 2023 [75] - Cash and short-term investments increased to $77.3 million from $56.9 million at the end of 2023 [75] Business Line Data and Key Metrics Changes - TAVALISSE sales reached $31 million in Q4 2024, a 21% increase year-over-year, while Rezlidia sales nearly doubled to $7.4 million [68] - Gavreto generated $8.1 million in net product sales in its second full quarter, exceeding the previous annual run rate of $28 million [23][68] - The company reported a compound annual growth rate of 32% in net product sales from 2021 to 2024 [16] Market Data and Key Metrics Changes - TAVALISSE is now commercially available in multiple countries, including Japan, Europe, Canada, and Israel, with recent approvals in Mexico and Korea [10][30] - The company is actively pursuing regulatory approvals for Rezlidia in ex-US markets, expanding its partnerships in Asia [30][31] Company Strategy and Development Direction - Rigel's strategy focuses on expanding its commercial portfolio, advancing its pipeline through internal development and collaborations, and maintaining financial discipline [8] - The company aims to grow its hematology and oncology business while achieving profitability and cash flow breakeven [79] - Plans for 2025 include advancing the R289 program for lower-risk MDS and initiating a Phase 2 study for olutasidenib in recurrent glioma [80] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth in net product sales, projecting a 30% year-over-year increase for 2025 [79] - The company highlighted the importance of maintaining high-quality access while reducing distribution costs to improve gross-to-net adjustments [70] Other Important Information - Rigel's R289 program has received both fast track and orphan drug designations from the FDA, indicating a strong regulatory interest [40] - The company is exploring opportunities to in-license or acquire products that align with its hematology and oncology focus [36] Q&A Session Summary Question: Can you provide more color on the product guidance for 2025? - Management clarified that the guidance of $185 to $192 million reflects normalization after a Q4 inventory build, with a projected 30% year-over-year growth in net product sales [85][86] Question: What data do you have on the duration of therapy for Rezlidia? - Management refrained from sharing specific data but indicated optimism about growth as awareness increases and more patients are treated earlier in their therapy [88][89] Question: How did TAVALISSE sales increase in Q4? - Management confirmed that the increase was driven by volume rather than price, with the highest quarterly demand ever recorded [101][102] Question: What is the strategy for the glioma program? - Management stated that it is too early to comment on the study design but plans to provide more information later in the year [106][108] Question: How is the sales force structured for future growth? - Management emphasized the importance of synergies across teams and the need to assess market impact when considering sales force expansion [120][123]

Financial Data and Key Metrics Changes - Total revenue for Q4 increased by 15% to $16.2 million compared to $14.2 million in the prior year [30] - Full year revenue increased by 14% to $60.8 million compared to $53.2 million in the prior year [34] - Net income for Q4 was $507,000, up from $61,000 in the prior year [32] - Non-GAAP net income for Q4 was $2 million, compared to $1.6 million in the prior year [33] - Full year non-GAAP net income was $7.7 million, up from $6.7 million in the prior year [37] Business Line Data and Key Metrics Changes - Service revenue for Q4 increased by 4% to $8 million compared to $7.7 million in the prior year [30] - Software solutions revenue for Q4 increased by 32% to $7 million compared to $5.3 million in the prior year [30] - Product revenue for Q4 remained flat at $1.2 million [30] - Full year service revenue increased by 7% to $31.8 million [34] - Full year software solutions revenue increased by 30% to $23.4 million [34] Market Data and Key Metrics Changes - The company reported a 39% organic increase in international revenues, mainly in the European Union and Australia [45] - The remaining performance obligation (backlog) grew by 34% to $85.6 million [48] Company Strategy and Development Direction - The company aims to expand market share in a disciplined and profitable manner, avoiding price wars [10] - Crexendo is positioned as the third largest new path platform provider, leveraging disruptions in the market caused by competitors [11][12] - The company is committed to investing in software development and UCaaS enhancements [18] - The recent launch of an ecosystem vendor partner program is expected to drive substantial revenue growth [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued double-digit growth over the next year and beyond [28] - The company maintained GAAP profitability for six consecutive quarters and non-GAAP profitability for 25 consecutive quarters [23] - Management highlighted the importance of customer satisfaction as a competitive advantage [24] Other Important Information - The company has made significant investments in automation and financial systems to improve operational efficiencies [25] - The transition to Oracle Cloud Infrastructure is expected to generate substantial cost savings [22] Q&A Session Summary Question: What are the priorities for capital allocation? - The company is evaluating acquisitions, particularly in AI, and considering share repurchases if the market deteriorates [61][62] Question: Can you quantify the number of clients that migrated from competitors? - Seven Microsoft Metaswitch licensees and three Cisco BroadSoft licensees migrated to Crexendo in 2024 [65] Question: Did you see any change in sales cycles due to the Metaswitch acquisition? - Sales cycles are varied; some customers are moving quickly while others are taking their time [72] Question: Were there any seven-figure transactions in the software solutions business? - There were a couple of seven-figure transactions, but they are considered outliers [81] Question: What is the expected growth trajectory for 2025? - The company expects to grow adjusted EBITDA margins while reinvesting in the business [84] Question: How does Crexendo's product compare to Alianza's? - Crexendo focuses more on the business and enterprise market, while Alianza has historically targeted residential markets [90][92] Question: What percentage of legacy service provider lines have moved to cloud offerings? - Approximately 40% of businesses are still not on the cloud, but this number is expected to decrease significantly [101] Question: What is the average revenue per user at the retail and wholesale levels? - Retail ARPU is around $20, while wholesale average revenue per licensee is approximately $6,000 per month [106][111]

Financial Data and Key Metrics Changes - The company reported a net sales decline to $40.7 million in Q4 2024 from $41.2 million in Q4 2023, attributed to lower volume but higher pricing in specialty chemicals [32] - Adjusted EBITDA increased to $2.6 million in Q4 2024 from negative $5.9 million in Q4 2023, with an adjusted EBITDA margin of 6.3% compared to negative 14.4% in the prior year [35] - For the full year 2024, net sales were $177.9 million, down from $193.2 million in 2023, while gross profit increased significantly to $22.1 million or 12.4% of net sales compared to $1.5 million or 0.8% in 2023 [36] Business Segment Data and Key Metrics Changes - The tubular products segment experienced a year-over-year sales decline of $12.4 million but increased segment-level gross profit by approximately $15 million due to cost management and product line optimization [16] - The specialty chemicals segment achieved its highest quarterly adjusted EBITDA since Q2 2022, driven by a 14% increase in gross margin despite moderate top-line compression [19] Market Data and Key Metrics Changes - The company noted that domestic investments in energy and infrastructure are beginning to translate into increased demand, with a stronger order backlog than in the past four years [17] - The total addressable market for the specialty chemicals segment is over $9 billion, with a focus on branded products that recorded a double-digit year-over-year increase in sales [20][22] Company Strategy and Development Direction - The company aims to maximize asset value in the tubular product segment while investing in profitable growth in specialty chemicals [7] - There is a commitment to organic growth through branded product sales and a disciplined approach to potential acquisitions [25] Management's Comments on Operating Environment and Future Outlook - Management expressed pragmatic optimism for 2025, indicating that while market dynamics are improving, significant changes are not expected in the first half of the year [17] - The company is focused on driving growth while maintaining operational excellence and has a strong liquidity position with over $16 million in cash [8][39] Other Important Information - The company has initiated a stock repurchase program, allowing for the acquisition of up to an additional one million shares over the next 24 months [9] - The company remains debt-free and generated nearly $15 million in free cash flow throughout the year [15][39] Q&A Session Summary Question: What are the expectations for top-line growth in 2025? - Management indicated that top-line growth is more likely to be a second-half opportunity, with no material changes expected in the first half [44] Question: What contributed to the significant cash growth from Q3 to Q4? - The increase in cash was primarily driven by optimizing idle inventory and improved cash conversion cycles [48][49] Question: How is the new cleaning portfolio being received in the market? - The reception was positive, with new opportunities being pursued following the launch at a cleaning conference [55] Question: What is the outlook for margin improvement in the chemicals segment? - There is potential for ongoing margin improvement as branded product sales increase, although further price increases may not be anticipated [61] Question: Is the share repurchase goal achievable given past buyback trends? - Management clarified that the buyback program provides flexibility and is contingent on market conditions and share price [64] Question: Where does management see the company a year from now? - The focus is on pivoting to growth, both organically and inorganically, with plans to fill underutilized assets with high-value applications [68]

Financial Data and Key Metrics Changes - Revenue for Q3 fiscal 2025 was $167.6 million, a decrease of 10% compared to $186.6 million in Q3 fiscal 2024 [39] - Adjusted EBITDA for Q3 was $21.8 million, down from $28.8 million in the same quarter last year [45] - The company reported a net loss of $1.8 million for Q3, compared to a net income of $13.9 million in the same period last year [49] - Funded backlog at the end of Q3 reached a record $763.5 million [54] Business Segment Data and Key Metrics Changes - The Loitering Munitions Systems (LMS) segment recorded revenue of $83.9 million, a 46% increase from $57.7 million in the previous year [40] - The Uncrewed Systems (UXS) segment generated $53.8 million in revenue, down 44% from $113.3 million, primarily due to a decrease in Ukraine-related revenue [41] - Revenue from the Macready Works segment was $20 million, an increase of 28% compared to $15.6 million in the same quarter last year [43] Market Data and Key Metrics Changes - Approximately $40 million worth of Switchblade 600 deployments in Ukraine resulted in the destruction of nearly $3 billion worth of enemy military assets [15] - Shipments to Ukraine are expected to represent only 17% of revenues for the full fiscal year, down from 38% last fiscal year [15] Company Strategy and Development Direction - The company is focused on expanding production capacity and launching innovative products while leveraging acquisitions to strengthen market leadership [10] - The BlueHalo transaction is expected to enhance the company's technology and capabilities, adding space technologies, counter-UAS, directed energy, electronic warfare, and cyber solutions to its portfolio [17] - The company aims to achieve more than 10% revenue growth and $1 billion in orders in fiscal year 2025 [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged short-term challenges due to unprecedented high winds and fires in Los Angeles, which impacted operations and financial performance [20][21] - Despite these challenges, management remains confident in achieving record fourth-quarter revenue and accelerating growth in fiscal year 2026 [10][56] - The evolving global security landscape is driving demand for cost-effective AI-driven autonomous defense solutions, aligning with the company's core offerings [12] Other Important Information - The company has received stop work orders on four foreign military sales contracts, representing about $13 million in orders [22] - The company is preparing for the integration of BlueHalo and has secured key regulatory approvals for the transaction [18] Q&A Session Summary Question: Thoughts on fiscal year 2026 growth - Management expressed confidence in achieving strong growth in fiscal year 2026, supported by a record backlog and expected revenue run rate of $240 to $250 million in Q4 [65][66] Question: Details on BlueHalo growth areas - Management highlighted excitement around BlueHalo's counter-UAS business, space communication capabilities, and advanced cyber solutions as key growth areas post-acquisition [70][72] Question: Clarification on work stoppage for FMS contracts - Management indicated that the stop work orders are related to foreign military sales contracts and are currently unclear if they are temporary or permanent [78][80] Question: Demand environment for uncrewed systems - Management expressed confidence in the uncrewed systems business, citing strong demand drivers and new capabilities expected to drive growth over the next several years [84][85] Question: Update on international sales and negotiations - Management reported firm orders from approximately six countries and ongoing engagement with an additional twenty countries for Switchblade systems [112][114]

Financial Data and Key Metrics Changes - Q4 net new ARR reached $224 million, exceeding expectations, with FY 2025 ending ARR at $4.24 billion [8][57] - FY 2025 total revenue grew 29% year over year, with operating income increasing by 27% to $837.7 million, representing 21% of revenue [56][57] - Free cash flow for Q4 was $240 million, with a record annual free cash flow of $1.07 billion, or 27% of revenue [9][57] Business Line Data and Key Metrics Changes - Cloud security, identity protection, and next-gen SIEM businesses collectively achieved over $1.3 billion in ending ARR, growing nearly 50% year over year [9][41] - Cloud security business grew more than 45%, with ending ARR exceeding $600 million [32][41] - Identity business reached over $370 million in ending ARR, benefiting from the growing identity attack surface [36][41] Market Data and Key Metrics Changes - The total contract value for FY 2025 reached $6 billion, a 40% increase year on year, indicating strong customer commitment [10][54] - The MSSP go-to-market strategy contributed nearly 15% of new business in FY 2025, reflecting rapid growth in this segment [46] - The GSI business grew over 40% year over year, nearing the billion-dollar milestone [45] Company Strategy and Development Direction - The company is focused on leveraging AI to enhance its cybersecurity offerings and drive efficiencies, aiming for $10 billion in ARR by FY 2031 [15][73] - The Falcon Flex subscription model is central to the company's strategy, allowing customers to adopt multiple modules seamlessly [26][28] - The company is positioned as a leader in the AI-native cybersecurity market, emphasizing the importance of integrated platforms over point products [24][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future net new ARR reacceleration, driven by strong customer relationships and platform adoption [55][60] - The geopolitical landscape and increasing cyber threats are seen as opportunities for growth, with a focus on enhancing threat intelligence capabilities [20][22] - Management anticipates improved visibility and operating margins in the second half of FY 2026, setting the stage for further acceleration in FY 2027 [55][73] Other Important Information - The company achieved a gross dollar retention rate of 97%, indicating strong customer loyalty [9][54] - The Falcon Flex model has led to significant increases in module adoption, with customers averaging over nine modules [62] - The company is the first cybersecurity ISV to exceed $1 billion in deal value on AWS Marketplace in a single calendar year [9][47] Q&A Session Summary Question: How is Falcon Flex driving better value for customers? - Falcon Flex allows customers to consolidate vendors and add modules without lengthy procurement cycles, leading to significant increases in ARR [83][86] Question: What are the growth rates for cloud and identity products? - The growth in cloud and identity has been influenced by customer demand and the importance of these areas for protection against identity-based attacks [90][92] Question: How did the company approach guidance for the year? - The company is optimistic about upselling opportunities as customer commitment packages expire, which should lead to reacceleration in net new ARR [96][100] Question: What is the contribution from existing customers to net retention rates? - The dollar-based net retention rate has fluctuated due to larger, longer deals, but the company remains confident in upselling opportunities [104][106] Question: What is the competitive environment around AI security? - The uptake of Charlotte AI has been strong, with positive feedback from customers regarding its efficiency and integration into workflows [110][113] Question: What is the status of exposure management as a competitive offering? - The company has enhanced its exposure management capabilities, allowing for full replacements of legacy products, which is driving customer interest [117][120] Question: How much did the Adaptive Shield acquisition contribute to net new ARR? - The contribution from Adaptive Shield was minimal in terms of ARR, but customer interest and adoption have been strong since its announcement [123][127] Question: How quickly are customers utilizing Falcon Flex dollars from CCP? - Customers are leveraging Falcon Flex dollars effectively, leading to earlier renewals and upsell events, contributing to robust deal values [130][132]