KE (NYSE:BEKE) Q3 2025 Earnings Call November 10, 2025 07:00 AM ET Company ParticipantsStanley Peng - Co-Founder, Chairman, and CEOTao Xu - CFOTing Li - IR DirectorConference Call ParticipantsTimothy Zhao - AnalystJiang Xiao - AnalystJohn Lamb - AnalystGriffin Chen - AnalystOperatorHello, ladies and gentlemen. Thank you for standing by for KE Holdings Third Quarter 2025 Earnings Conference Call. Please note that today's call, including the management's prepared remarks and question-and-answer session, will ...

Financial Data and Key Metrics Changes - Consolidated revenue increased by 36.5% year-over-year to $60.9 million, compared to approximately $44.6 million in the same period last year [4] - Consolidated net income attributable to shareholders reached $2.65 million, representing a 150-fold increase year-over-year [8] Business Line Data and Key Metrics Changes - Hitrans, the battery raw material segment, generated approximately $27.2 million in revenue, a 143.7% increase year-over-year [4] - Battery Business revenue grew 0.7% year-over-year, stabilizing after a short-term volume decline [5] - Net loss for Hitrans narrowed to $2.1 million, an 18.8% improvement from $2.6 million in the same period of 2024 [8] - Battery segment's net income rebounded by 122.7% to $4.53 million, compared to $2.04 million a year ago [8] Market Data and Key Metrics Changes - The raw material market is recovering, contributing positively to Hitrans' performance [9] - Demand for Model 32140 batteries remains robust, with production capacity fully utilized and a significant backlog of orders [5] Company Strategy and Development Direction - The company is expanding production capacity with the Nanjing phase 2 facility expected to add 2 GWh of capacity, with mass production beginning in mid-November 2025 [5][6] - A new product line for the Model 40135 has been commissioned at the Dalian facility, adding 2.3 GWh capacity [6][7] - The company is pursuing overseas manufacturing expansion, contingent on updates to China's export control policies [9] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about Hitrans returning to profitability in the coming quarters due to the recovery in the raw material market [8] - The company anticipates that the new production lines will enhance earnings performance and contribute to sustainable value for shareholders [9] Other Important Information - The company has signed a term sheet with a major publicly listed company in Asia to jointly develop an overseas lithium battery production base [9] Q&A Session Summary Question: Customer concentration in the LEV division and sustainability of light electric vehicle sales - Management highlighted strong development in the LEV business, particularly in Southeast Asia, with ongoing communications with top OEMs in India [14] Question: Market outlook for Hitrans regarding potential oversupply - Management indicated that Hitrans will focus on improving the quality and performance of current products, expecting stronger performance in the coming quarters [15] Question: Expected production capacity above 6 GWh and securing production equipment - Management confirmed that all necessary equipment has been installed, with mass production expected by Q1 next year, achieving 6 GWh in accordance with customer orders [16][17]

Financial Data and Key Metrics Changes - In Q3 2025, the total GTV was RMB 736.7 billion, remaining flat year over year, while total revenues reached RMB 23.1 billion, up 2.1% year over year [5] - Gross margin declined by 1.3 percentage points year over year to 21.4%, and GAAP net income was RMB 747 million, down 36.1% year over year [6][14] - Non-GAAP net income was RMB 1.29 billion, down 27.8% year over year [16] Business Line Data and Key Metrics Changes - Revenue from in-home transactions was RMB 6 billion in Q3, down 3.6% year over year, while GTV was RMB 505.6 billion, up 5.8% year over year [7] - Revenue from new home transactions was RMB 6.6 billion, decreasing by 14.1% year over year [9] - Revenue from home renovation and furniture services was RMB 4.3 billion, remaining relatively flat year over year, with a contribution margin of 32%, up 0.8 percentage points year over year [10] - Home rental services revenue reached a record high of RMB 5.7 billion, up 45.3% year over year, with a contribution margin of 8.7%, up 4.3 percentage points year over year [11][13] Market Data and Key Metrics Changes - The number of rental units under management increased to over 660,000, compared to over 370,000 in the same period of 2023 [12] - The contribution margin for home rental services improved significantly, driven by enhanced gross margin from carefully run business [13] Company Strategy and Development Direction - The company is focusing on balancing skill and efficiency, optimizing business structure, and enhancing operational efficiency through AI technology [5] - A strategic shift from scale to efficiency is being implemented, with innovative initiatives rolled out across businesses [20] - The company aims to build a residential services ecosystem, leveraging technological innovation and a well-structured operating system [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the new home business despite near-term market volatility [37] - The company is optimistic about the home rental services' profitability and plans to continue improving operational efficiency [45] - The home renovation market in second and third-tier cities is viewed as a critical long-term growth driver [53] Other Important Information - The company spent approximately $281 million on share repurchase in Q3, with a cumulative amount of approximately $675 million in 2025, up 15.7% year over year [17][18] - The company has made significant progress in optimizing its business structure and enhancing shareholder returns [18] Q&A Session Summary Question: What is the outlook for the new home business? - Management acknowledged that while the new home business has faced challenges, they remain confident in its long-term growth potential, citing market maturation and improved brokerage penetration [37][39] Question: How did the leasing service business turn losses into profits? - Management attributed the improvement to economies of scale, rapid growth in rental units, and enhanced operational efficiency, resulting in significant year-over-year revenue growth [45][46] Question: How does the company plan to motivate agents in cities outside of major markets? - Management highlighted the importance of a systematic operational framework to engage agents, including innovative incentive programs and leveraging AI to boost conversion efficiency [56][58] Question: What measures are being taken to control costs? - Management detailed various cost control measures across business lines, including labor cost reductions, supply chain integration, and operational efficiency improvements [61][62]

Financial Data and Key Metrics Changes - Consolidated revenue increased by 36.5% year-over-year to $13.9 million, compared to approximately $14.6 million in the same period last year [4] - Net income attributable to CBAK Energy shareholders reached $2.65 million, representing a 150-fold increase year-over-year [8] Business Line Data and Key Metrics Changes - Hi-Trons generated approximately $7.2 million in revenue, a 143.7% increase year-over-year, driven by the recovery in the battery raw material segment [4] - Battery business revenue grew 0.7% year-over-year, stabilizing after a short-term volume decline, primarily due to strong demand for the model 32140 battery [5] Market Data and Key Metrics Changes - The Hi-Trons segment's net loss narrowed to $2.1 million, an 18.8% improvement from $2.6 million in the same period of 2024 [8] - The Dalian facility's new production line adds an additional 2.3 GWh capacity for the model 40135, expected to drive growth in 2026 [7] Company Strategy and Development Direction - The company is expanding production capacity with the Nanjing phase 2 facility expected to begin mass production in mid-November 2025, adding 2 GWh of capacity [5] - CBAK Energy is pursuing overseas manufacturing expansion, contingent on updates to China's export control policies [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing recovery of the raw materials industry, which is expected to strengthen Hi-Trons' results [9] - The company anticipates achieving a production capacity above 6 GWh by mid-2026, with all necessary equipment already installed [15] Other Important Information - The company has signed a term sheet with a major publicly listed company in Asia to jointly develop an overseas lithium battery production base [9] - Management emphasized that policy shifts could affect overseas plans and timelines [10] Q&A Session Summary Question: Customer concentration in the LEV division and sustainability of light electric vehicle sales - Management highlighted strong development in Southeast Asia, particularly in India, with ongoing communications with top two-wheeler OEMs and partnerships in the battery swapping business [13] Question: Market outlook for Hi-Trons regarding potential oversupply - Management indicated that Hi-Trons will focus on improving the quality and performance of current products, expecting stronger performance in the coming quarters due to industry recovery [14] Question: Expected production capacity above 6 GWh and securing production equipment - Management confirmed that all equipment is installed, with trial production underway, and mass production expected by Q1 next year, achieving 6 GWh in accordance with customer orders [15][16]

Financial Data and Key Metrics Changes - Company reported total revenue of $1.115 billion for Q3 2025, reflecting a year-on-year growth of 7.5% in U.S. dollar terms [24] - EBITDA for the quarter was $524 million, representing a growth of 19.7%, with an EBITDA margin of 47%, up 400 basis points year-on-year [25] - Last 12-month EPS stands at $8.89, up 60.2% year-on-year, although reported EPS for Q3 alone was a loss of $1.84 per share due to non-cash charges [8][9] Business Line Data and Key Metrics Changes - Direct digital revenues grew 63% year-on-year to reach $198 million, now accounting for 17.8% of total revenues, up from 11% a year ago [25] - Telecom and infrastructure segment revenues grew 3.5% on a like-for-like basis, reflecting the impact of differentiated networks and services [8] - Multiplay customers generated 55.4% of total customer revenues, with this segment growing revenue-wise by 23% year-on-year [13] Market Data and Key Metrics Changes - Strong double-digit revenue growth was delivered across all markets except Bangladesh, which saw a return to year-on-year growth for the first time in 14 months [14] - Beeline Kazakhstan's revenues on a like-for-like basis were up 23.3%, despite headline numbers showing single-digit growth [14] - The financial services business in Pakistan reported a gross transaction value increase of 40% year-on-year, representing 13% of Pakistan's GDP [15] Company Strategy and Development Direction - The company is focused on a digital operator model, combining connectivity, digital platforms, and financial inclusion to unlock sustainable growth [4] - The asset-light strategy continues with the sale of Kyrgyzstan operations and a global framework agreement with Starlink for satellite connectivity [6] - The company is keen on expanding its digital services portfolio and enhancing capital efficiency while maintaining EBITDA growth [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite macro and geopolitical challenges, revising EBITDA growth outlook to 16%-18% in local currency terms for the full year [29] - The company aims to maintain revenue guidance of 13%-15% growth in local currency terms, translating to 7%-8% revenue growth in U.S. dollar terms [29] - Management highlighted the importance of digital services in driving customer engagement and retention, with a focus on expanding smartphone ownership in frontier markets [72][86] Other Important Information - The company completed the operational separation of JazzCash, enhancing growth potential in digital financial services [15] - A $100 million share and/or bond repurchase program was approved by the board, reflecting confidence in growth prospects [7] - The company ended the quarter with a cash balance of $1.67 billion, including $653 million at headquarters [26] Q&A Session Summary Question: Motivation for Kyivstar's SPAC transaction - Management chose a SPAC structure for its deal certainty and speed, believing it would create opportunities for international investors in Ukraine [34] Question: Plans for cash at headquarters level - The cash at headquarters is $653 million, with limitations on upstreaming due to martial law in Ukraine, focusing on investments in the country [38][39] Question: Future of tower assets in Ukraine - The company aims to pursue divestment of tower assets, favoring independent tower companies for better infrastructure sharing [44][46] Question: Financial services growth and loan types - The financial services business targets unbanked individuals, offering nano loans averaging $30-$40, crucial for small businesses [48][49] Question: Strategies for increasing JazzCash penetration - The company plans to enhance smartphone ownership and leverage competencies from Pakistan to expand fintech capabilities in other markets [72][73] Question: Digital bank licensing in Pakistan - The company is exploring upgrading its microfinance banking license to a full digital bank license to enhance capabilities [76] Question: Ride-hailing business expansion - The ride-hailing business operates in 28 cities, with plans to grow in priority markets like Kazakhstan and Pakistan [80]

Financial Data and Key Metrics Changes - For Q2 FY 2026, the company reported revenue of $17.36 million, a 3% increase year-over-year from $16.87 million in Q2 FY 2025 [11] - Net income for the quarter was $640,000, a significant improvement from a loss of $2.3 million in the same period last year [11] - Adjusted EBITDA was $2.55 million compared to a loss of $2.3 million a year ago, reflecting a strong turnaround [11] - For the first half of FY 2026, revenue reached $32.69 million, with net income of $2.32 million and adjusted EBITDA of $3.59 million, marking the strongest six-month performance in the company's history [3][11] Business Line Data and Key Metrics Changes - The company expanded operations in India and Mexico, planning to hire over 500 new roles to enhance delivery capabilities [4] - New enterprise clients were added across technology, healthcare, and software segments, including private equity-backed companies [4][5] - The company reported positive cash flow from operations for two consecutive quarters, driven by disciplined cost management and stronger collections [6] Market Data and Key Metrics Changes - The company is experiencing positive movements in client engagement across various industries, including enterprise software and healthcare technology [7] - The demand for partners who can assist enterprises in modernization, automation, and scaling efficiently is increasing [8] Company Strategy and Development Direction - The company aims to strengthen its core through technology and AI while building enduring relationships with enterprise and private equity clients [10] - The strategy focuses on operational excellence, AI-powered deliveries, and a scalable model of value creation [5][10] Management's Comments on Operating Environment and Future Outlook - Management highlighted that the current contracts are in the early phase, with greater financial impacts expected in the upcoming quarters [8] - The company anticipates full-year FY 2026 adjusted EBITDA to be between $6 million and $8 million, indicating a focus on balancing growth and profitability [13] Other Important Information - The company has stabilized its operating expenses to support profitability and scalability while allowing for targeted investments in automation and delivery infrastructure [12] - The balance sheet remains healthy, providing flexibility for innovation investments while maintaining financial prudence [13] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - Revenues grew 7.5% year-on-year in USD terms, reaching $1.115 billion in Q3 2025 [4][22] - USD EBITDA increased by 19.7% year-on-year, amounting to $524 million, with an EBITDA margin of 47%, up 400 basis points year-on-year [4][22] - Last 12-month EPS stands at $8.89, up 60.2% year-on-year, although reported EPS for Q3 alone was a loss of $1.84 per share due to non-cash charges [7][8] - Direct digital revenues surged 63% year-on-year, now contributing 17.8% of total group revenues [4][22] Business Line Data and Key Metrics Changes - Telecom and infrastructure segment revenues grew 3.5% on a like-for-like basis, reflecting differentiated networks and services [7] - Digital services now account for 17.8% of total revenues, up from 11% a year ago [22] - Multiplay customers, who use at least one digital service in addition to voice and data, generated 55.4% of total customer revenues, growing revenue-wise by 23% year-on-year [11][12] Market Data and Key Metrics Changes - Strong double-digit revenue growth was delivered across all markets except Bangladesh, which returned to year-on-year growth for the first time in 14 months [12] - VLINE Kazakhstan's revenues grew 23.3% on a like-for-like basis, adjusting for TNS Plus deconsolidation [12] - The financial services business in Pakistan saw gross transaction value rise 40% year-on-year, representing 13% of Pakistan's GDP [13] Company Strategy and Development Direction - The company is focused on a digital operator model, combining connectivity, digital platforms, and financial inclusion to unlock sustainable growth [4] - The asset-light strategy continues with the sale of Kyrgyzstan operations and a global framework agreement with Starlink for satellite connectivity [5][6] - The company is committed to enhancing its digital services portfolio, with AI integration becoming central to operations [5][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite macro and geopolitical challenges, revising EBITDA growth outlook to 16%-18% in local currency terms for the full year [24] - The board approved a $100 million share and/or bond repurchase program, reflecting confidence in growth prospects [6][24] - Management highlighted the importance of digital engagement exceeding mobile engagement, indicating a shift in customer interaction [15] Other Important Information - The listing of Kyivstar on NASDAQ unlocked significant value, with a current market valuation of $2.8 billion [6] - The company retains an 89.6% stake in Kyivstar, valued at $2.5 billion at current market prices [6] - The company ended the quarter with a cash balance of $1.67 billion, including $653 million at headquarters [23] Q&A Session Summary Question: Motivation for choosing a SPAC structure for Kyivstar's listing - Management believed in Ukraine's future and opted for a De-SPAC process to fast-track the listing, achieving a valuation of $2.8 billion [26][27] Question: Plans for cash at headquarters level - The cash at headquarters is $653 million, with limitations on upstreaming due to martial law in Ukraine, focusing on investments in the country [27][28] Question: Future of tower assets in Ukraine - The company aims to pursue an asset-light strategy, considering independent tower companies for better infrastructure management [29][30] Question: Financial services growth in Pakistan - The financial services business is growing steadily, with a focus on microloans and a significant merchant network driving cashless transactions [32][33] Question: Plans for ride-hailing business expansion - The ride-hailing business operates in 28 cities, with plans to explore growth in other markets on a city-by-city basis [44] Question: Digital banking license for MMBL - The company is considering upgrading to a full digital bank license to enhance capabilities and contribute to the cashless economy initiative [43]

Financial Data and Key Metrics Changes - Consolidated revenue increased by 36.5% year-over-year to $13.9 million, compared to approximately $14.6 million in the same period last year [4] - Consolidated net income attributable to shareholders reached $2.65 million, representing a 150-fold increase year-over-year [8] Business Line Data and Key Metrics Changes - Hi-Trons segment generated approximately $7.2 million in revenue, a 143.7% increase year-over-year [4] - Battery business revenue grew 0.7% year-over-year, stabilizing after a short-term volume decline [5] - Net loss for Hi-Trons narrowed to $2.1 million, an 18.8% improvement from $2.6 million in the same period of 2024 [8] - Battery segment's net income rebounded by 122.7% to $4.53 million, compared to $2.04 million a year ago [8] Market Data and Key Metrics Changes - The recovery in the raw material market has positively impacted Hi-Trons' performance, indicating a potential balance in supply and demand [14] - The company is expanding production capacity significantly, with the Nanjing phase 2 facility expected to add 2 GWh of capacity [5] Company Strategy and Development Direction - The company is pursuing overseas manufacturing expansion, contingent on updates to China's export control policies [9] - A term sheet has been signed with a major Asian company to jointly develop an overseas lithium battery production base, reflecting strong strategic alignment [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing recovery of the raw materials industry and its positive impact on Hi-Trons' results [9] - The company anticipates that the new production lines will enhance earnings performance and contribute to sustainable value for shareholders [9] Other Important Information - The Nanjing phase 2 facility is expected to begin mass production in mid-November 2025, addressing supply shortages [5] - The Dalian facility has commissioned a new production line for the higher-performance 40135 model, which is expected to drive growth in 2026 [6][7] Q&A Session Summary Question: Customer concentration in the LEV market and sustainability of sales - Management noted strong development in the LEV business, particularly in Southeast Asia, with ongoing communications with top OEMs in India [12] Question: Market outlook for Hi-Trons and potential oversupply - Management indicated that Hi-Trons will focus on improving quality and performance of current products, expecting stronger performance in the coming quarters [14] Question: Production capacity expectations for 2026 - Management confirmed that all necessary equipment is installed, with mass production expected by Q1 next year, achieving over 6 GWh capacity in accordance with customer orders [15][16]

Financial Data and Key Metrics Changes - In Q3 2025, the total GTV was RMB 736.7 billion, remaining flat year over year. Total revenues reached RMB 23.1 billion, up 2.1% year over year [5] - Gross margin declined by 1.3 percentage points year over year to 21.4%. GAAP net income was RMB 747 million, down 36.1% year over year, while non-GAAP net income was RMB 1.29 billion, down 27.8% year over year [6][15] - The company generated net operating cash inflow of RMB 851 million in Q3, with total cash liquidity around RMB 70 billion [15][16] Business Line Data and Key Metrics Changes - Revenue from in-home transactions reached RMB 6 billion in Q3, down 3.6% year over year. GTV was RMB 505.6 billion, up 5.8% year over year [7] - Revenue from new home transactions was RMB 6.6 billion in Q3, decreasing by 14.1% year over year. The contribution margin from new home transaction services was 24.1%, down by 0.7 percentage points year over year [9] - Revenue from home renovation and furniture business was RMB 4.3 billion, remaining relatively flat year over year, with a contribution margin of 32%, up 0.8 percentage points year over year [10] - Revenue from home rental services reached a record high of RMB 5.7 billion in Q3, up 45.3% year over year, with a contribution margin of 8.7%, up 4.3 percentage points year over year [11][12] Market Data and Key Metrics Changes - The company reported a significant increase in the number of rental units under management, exceeding 660,000 by the end of Q3, compared to over 370,000 in the same period of 2023 [11] - The average market coverage in Shanghai hit a record high in Q3, increasing 1.2 percentage points year over year and 2.6 percentage points quarter over quarter [23] Company Strategy and Development Direction - The company is strategically shifting its growth engine from scale to efficiency, focusing on enhancing operational efficiency through AI technology and optimizing business structure [5][18] - The company aims to build a residential services ecosystem, leveraging technological innovation and a well-structured operating system to deliver value to customers and investors [18] - The company is piloting lighter product offerings to tap into lower-tier cities and plans to expand its B+ business to over 30 cities by the end of the year [37][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the new home business despite recent market volatility, citing a shift to a more growth-driven strategy [35] - The company highlighted the importance of operational efficiency and AI integration in driving future growth and improving service capabilities [32][60] - Management noted that the home renovation market in second and third-tier cities represents a critical long-term growth driver, with plans to expand once operational capabilities are matured [51][52] Other Important Information - The company spent approximately $281 million on share repurchase during Q3, with a cumulative amount of approximately $675 million in 2025, up 15.7% year over year [16][17] - The company has achieved significant cost reductions across various business lines, with fixed labor costs decreasing by more than 20% in existing home transaction services [60][62] Q&A Session Summary Question: What is the reason for the diminishing Alpha in the new home business? - Management indicated that the new home construction business has been affected by market volatility but remains confident in its long-term potential, citing a shift in customer preferences towards existing homes and a higher base from the previous year [35][36] Question: How did the leasing service business turn losses into operating profit? - Management attributed the improvement to economies of scale, rapid growth in rental units, and operational efficiency, with revenue from home rental services reaching RMB 5.7 billion in Q3 [42][43] Question: How does the company plan to motivate agents to sell renovation services in lower market share cities? - Management emphasized the importance of a systematic operational framework to engage agents, including innovative incentive programs and leveraging AI to boost contract conversion efficiency [50][53]

Financial Data and Key Metrics Changes - For Q2 FY2026, the company reported a net loss of $61 million, an improvement from a net loss of $138 million in Q2 FY2025, primarily due to a favorable service revenue mix, lower depreciation and amortization, and reduced SG&A expenses [5][17] - Revenue grew by 2% year-over-year to $1.1 billion, with adjusted EBITDA increasing by 3% to $385 million, resulting in a 34% adjusted EBITDA margin [15][17] - Free cash flow for the quarter was $69 million, contributing to a trailing 12-month total of $147 million, marking three consecutive quarters of positive free cash flow [13][17] Business Line Data and Key Metrics Changes - In the communication services segment, awards increased by 35% to $1.03 billion, while revenue was $837 million, up 1% year-over-year [18][20] - The defense and advanced technologies (DAT) segment saw awards decline by 9% to $467 million, but revenue grew by 3% to $304 million, driven by growth in InfoSec and cyber [21][22] - The aviation revenue grew by 15%, supported by an increase in commercial aircraft in service and higher average revenue per aircraft [18][19] Market Data and Key Metrics Changes - The backlog increased to $3.9 billion, up approximately $140 million year-over-year, despite the sale of the energy system integration business [17][18] - The company noted a significant uptick in interest for commercial mobile space networks, indicating a growing market for direct-to-consumer device non-terrestrial network connectivity [9][10] Company Strategy and Development Direction - The company is focused on launching Viasat 3 Flight 2 and Flight 3, which are expected to significantly enhance bandwidth capacity and drive growth in communication services [7][8] - The strategic review committee is evaluating capital allocation priorities, including the potential separation of government and commercial businesses to enhance competitive positioning [10][29] - The company aims to optimize its capital structure and reduce leverage, targeting a leverage ratio of three times net debt adjusted EBITDA or lower [14][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth trajectory supported by increased reliance on space-based assets for national security and growing demand for resilient communications [8][24] - The company anticipates fiscal 2026 revenue growth in low single digits year-over-year, with flattish adjusted EBITDA and variability quarter to quarter [23][24] - Management is closely monitoring the potential impacts of the U.S. government shutdown, estimating delays in DAT awards and adjusted EBITDA [25][26] Other Important Information - The company expects capital expenditures for the year to be about $1.2 billion, with significant investments related to the completion of Viasat 3 [26][27] - The company has moved $175 million in cash from Inmarsat to Viasat, with plans to transfer a total of $400-$500 million over time [28] Q&A Session Summary Question: Update on evaluating the possibility of a split and vertical integration opportunities - Management is continuously evaluating options for vertical integration and dual-use systems, with no set end date for this process [33][34] Question: Details on international spectrum ownership and monetization - The company holds a substantial amount of global spectrum and is exploring ways to maximize its value through operational investments and potential partnerships [36][39] Question: Insights on the Equitus project and ideal customers - Equitus aims to modernize infrastructure for spectrum allocations, with discussions ongoing with regional operators and the European Space Agency [40][43] Question: Clarification on backlog growth and recognition cadence - Management indicated that backlog growth is strong, with a focus on converting efforts into future growth, particularly with the upcoming capacity from Flight 2 [51][53] Question: Demand signals for defense bookings beyond the U.S. - Management noted healthy performance in the U.S. and increasing demand signals in Europe, particularly related to national security [89]