Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $276 million, up 3% year-over-year, with a 7% increase when excluding license and maintenance revenue [18][19] - Cloud revenue increased by 21% to $105 million, slightly better than expected, while services revenue declined by 3% to $133 million [19] - Remaining Performance Obligations (RPO) increased by 23% year-over-year to $2.1 billion [20][21] - Adjusted operating profit was $103 million, with an adjusted operating margin of 37.5%, up about 40 basis points year-over-year [22] - Adjusted earnings per share (EPS) for Q3 was $1.36, up 1%, while GAAP EPS was $0.96, down 7% [22] Business Line Data and Key Metrics Changes - Cloud revenue growth was a significant driver of overall performance, with strong execution in services revenue despite a decline [5][19] - The company experienced a meaningful uptick in conversions and a growing pipeline of future conversion opportunities, particularly in cloud services [5][6] - New logos represented approximately 35% of the pipeline at the end of Q3, indicating a healthy mix of new and existing customer engagements [8] Market Data and Key Metrics Changes - The company reported strong win rates at 70%, with robust demand across diverse end markets including retail, grocery, and pharmaceuticals [5][8] - The macroeconomic environment remains volatile, impacting customer behavior and project timelines, but demand for the company's solutions remains strong [20][24] Company Strategy and Development Direction - The company is focused on strategic investments to drive growth initiatives, including converting on-premise customers to cloud solutions and cross-selling its unified product portfolio [5][29] - The launch of a dedicated renewal team and a conversion program aims to enhance customer engagement and accelerate cloud adoption [10][75] - The introduction of Agentic AI across all solutions is expected to enhance operational efficiency and customer value, with plans for broader deployment in early 2026 [11][96] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving the high end of RPO goals for 2025 and expects cloud revenue to grow by 20% in 2026 [29] - The company anticipates a significant renewal cycle over the next 18 months, which is expected to positively impact RPO levels [32][33] - Management acknowledged the challenges posed by the macro environment but remains confident in the company's fundamentals and growth potential [20][24] Other Important Information - The company ended Q3 with $264 million in cash and zero debt, having invested $50 million in share repurchases during the quarter [23] - The board approved the replenishment of the $100 million share repurchase authority, reflecting confidence in the company's financial position [23] Q&A Session Summary Question: Can you share more on RPO levels and visibility for 2026? - Management highlighted a 23% year-over-year increase in RPO and expressed optimism due to a major renewal cycle coming up [32][33] Question: What are the conversion strategies for on-premise customers? - The company is taking a more proactive approach to conversions, offering fixed-fee, fixed-timeline options to a cohort of similar customers, resulting in a strong pipeline [36][37] Question: How is the fourth quarter shaping up compared to last year? - Management noted that Q4 is off to a strong start, with expectations for a performance similar to the previous year [42] Question: What role will the new COO play in growth initiatives? - The COO will focus on conversions, renewals, and strengthening the partner ecosystem to drive faster pipeline growth [45] Question: How is the company addressing the services momentum heading into 2026? - Management reported a strengthening services pipeline and backlog, indicating optimism for growth in 2026 [56][57] Question: What is the impact of Agentic AI on operations? - Internally, Agentic AI is providing leverage across departments, while externally, it is expected to enhance customer engagement and operational efficiency [92][96]

Manhattan Associates (NasdaqGS:MANH) Q3 2025 Earnings Call October 21, 2025 04:30 PM ET Company ParticipantsGeorge Kurosawa - Equity Research Senior Associate of Back Office SoftwareDennis Story - CFOMark Schappel - Managing DirectorMichael Bauer - Head of Investor RelationsBrian Peterson - Managing Director of Application SoftwareEric Clark - President and CEOTerry Tillman - Managing Director of Application Software and SaaS Equity ResearchConference Call ParticipantsJoe Vruwink - Senior Research Analyst o ...

Intuitive Surgical (NasdaqGS:ISRG) Q3 2025 Earnings Call October 21, 2025 04:30 PM ET Company ParticipantsFrederick Wise - Managing DirectorDan Connally - Head of Investor RelationsTravis Steed - Managing Director, Equity Research, Medical TechnologyDavid Roman - Managing DirectorJamie Samath - CFODave Rosa - CEOConference Call ParticipantsAdam Maeder - Research AnalystPatrick Wood - Managing Director and Lead AnalystLawrence Biegelsen - Senior AnalystRobbie Marcus - Managing Director and Senior AnalystOper ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $276 million, up 3% year-over-year, and up 7% when excluding license and maintenance revenue [17][18] - Cloud revenue increased by 21% to $105 million, slightly better than expected [18] - Services revenue declined by 3% to $133 million, impacted by budgetary constraints [18] - RPO (Remaining Performance Obligations) increased by 23% year-over-year to $2.1 billion [4][18] - Adjusted operating profit was $103 million with an adjusted operating margin of 37.5%, up about 40 basis points year-over-year [19] - Q3 adjusted earnings per share was $1.36, up 1%, while GAAP EPS was $0.96, down 7% [20] Business Line Data and Key Metrics Changes - Cloud revenue growth was a significant driver of top-line performance, with strong execution in services revenue [4][18] - New logos represented approximately 35% of the pipeline at the end of Q3, with a focus on converting on-premise customers to cloud solutions [6][8] - The company reported notable deals across various sectors, including healthcare, retail, and food distribution, indicating a diverse customer base [6][7] Market Data and Key Metrics Changes - The company experienced strong demand across multiple verticals, including retail, technology, and logistics [6] - Win rates remained robust at 70%, with a growing pipeline of future conversion opportunities [4][18] Company Strategy and Development Direction - The company is focused on strategic investments to drive new customer acquisition, cross-selling, and converting on-premise customers to cloud solutions [4][27] - The introduction of Agentic AI across all solutions aims to enhance operational efficiency and customer productivity [10][12] - The company plans to provide initial annual guidance in Q4 to align with software peers and improve transparency [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving the high end of RPO goals for 2025 and expects 20% cloud revenue growth in 2026 despite macroeconomic uncertainties [27][26] - The company is confident in its ability to navigate the current volatile environment, supported by a strong backlog and pipeline [18][26] Other Important Information - The company announced the appointment of Greg Betts as Chief Operating Officer to enhance operational frameworks around conversions and renewals [9][10] - The company is investing in sales and marketing to support growth initiatives and improve customer engagement [9][64] Q&A Session Summary Question: Can you share more on RPO levels and visibility for 2026? - Management noted a 23% increase in RPO year-over-year and highlighted a major renewal cycle coming in the next 18 months, which provides optimism for future RPO levels [30][31] Question: What are the conversion strategies for on-premise customers? - The company is taking a more proactive approach to conversions, offering fixed-fee, fixed-timeline options to a cohort of similar customers, resulting in a significant increase in pipeline deals [34][35] Question: How is the fourth quarter shaping up compared to last year? - Management indicated that the fourth quarter is off to a strong start, with expectations for a performance similar to the previous year [39] Question: What is the impact of Agentic AI on internal operations? - Management stated that Agentic AI is providing leverage across departments, enhancing productivity without reducing R&D headcount [80] Question: What is the outlook for services as you head into 2026? - The services pipeline is strengthening, and management is optimistic about growth as they continue to execute well [50][51] Question: How is the company scaling its partner ecosystem? - The company is enhancing its partner program to align more closely with successful models from other software companies, focusing on building trust and clarity [56][58]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $4.7 billion, reflecting a 7% sequential increase and a 14% year-over-year increase [3] - Gross profit was $2.7 billion, representing 57% of revenue, with a sequential decrease of 50 basis points in gross profit margin [5] - Operating profit was $1.7 billion, or 35% of revenue, up 7% from the previous year [5] - Net income for the quarter was $1.4 billion, translating to $1.48 per share, which included a $0.10 reduction due to restructuring charges [5][6] - Cash flow from operations was $2.2 billion for the quarter and $6.9 billion on a trailing 12-month basis [6] Business Line Data and Key Metrics Changes - Analog revenue grew 16% year-over-year, while Embedded Processing revenue increased by 9% [3] - The industrial market saw a 25% year-over-year increase and low single-digit growth sequentially [4] - The automotive market increased upper single digits year-over-year and around 10% sequentially [4] - Personal electronics grew low single digits year-over-year and upper single digits sequentially [4] - Enterprise systems grew about 35% year-over-year and 20% sequentially [4] - Communications equipment grew approximately 45% year-over-year and about 10% sequentially [4] Market Data and Key Metrics Changes - Customer inventories remain low, and inventory depletion appears to be behind the company [3] - The overall semiconductor market recovery is ongoing but at a slower pace than previous upturns due to macroeconomic dynamics [3] Company Strategy and Development Direction - The company plans to focus on long-term value creation through disciplined capital allocation and strengthening competitive advantages [9] - The company is winding down its 150mm fabs, with expected cost reductions through the first half of 2026 [15] - The company aims to continue investing in manufacturing, technology, and a broad product portfolio to enhance its market position [9][35] Management's Comments on Operating Environment and Future Outlook - Management noted a moderate recovery in the semiconductor market, with hesitancy among customers regarding new investments due to uncertainty in regulations [44] - The automotive sector is recovering well, while the data center market is experiencing strong growth [46] - The company expects Q4 revenue to be in the range of $4.22 to $4.58 billion, with EPS guidance of $1.13 to $1.39 [8] Other Important Information - The company returned $6.6 billion to shareholders over the past 12 months, including $1.2 billion in dividends and $119 million in stock repurchases [7] - The company has a strong balance sheet with $5.2 billion in cash and short-term investments and total debt of $14 billion [8] Q&A Session Summary Question: Can you talk about the linearity of bookings through the quarter? - Management indicated that Q3 was more stable compared to Q2, with no significant changes in bookings throughout the quarter [11] Question: Can you discuss the restructuring and its impact on expenses? - The restructuring is related to winding down 150mm fabs and consolidating R&D sites, with expected cost reductions in the future [15][16] Question: What are the expectations for gross margins in Q4? - Management indicated that gross margins are expected to decline due to lower revenue and increased depreciation [25][31] Question: How is the company addressing inventory levels? - The company is pleased with its current inventory position and aims to maintain it while ensuring high customer service levels [13][50] Question: What is the outlook for the data center market? - The data center market is growing rapidly, with no signs of slowdown, and the company plans to provide more details in future calls [54][55]

Financial Data and Key Metrics Changes - Organic growth for Q3 2025 was 2.6%, with a year-to-date growth of 3%, aligning with annual guidance [6][7] - Non-GAAP adjusted EBITDA for the quarter was $551.6 million, with an adjusted EBITDA margin of 16.1%, up 10 basis points from the previous year [7][14] - Non-GAAP adjusted net income per share increased by 10.3% to $2.24 compared to Q3 2024 [7][14] - The reported income tax rate was 27.2%, up from 26.8% in the prior year, primarily due to non-deductible acquisition-related costs [16][17] Business Line Data and Key Metrics Changes - Media and advertising revenues grew by 9%, while creative services were impacted by lower project work due to macroeconomic uncertainty [18] - Precision marketing growth was just under 1%, with solid growth in the U.S. offset by declines in Europe [18] - Public Relations declined by 8%, largely due to the absence of U.S. national election-related revenue [19] - Healthcare revenues decreased by 2% organically, with declines in both U.S. and European agencies [20] - Branding and retail commerce fell by 17%, and experiential marketing declined by 18% due to tough comparisons with the previous year [21] Market Data and Key Metrics Changes - The U.S. market saw a revenue growth of 4.6%, while the UK grew by 3.7%. Continental Europe experienced a decline of 3.1% [22] - Non-euro markets delivered organic growth, but this was offset by declines in the events business [22] Company Strategy and Development Direction - The company is focused on the integration of the proposed acquisition of Interpublic, with plans to close the deal by late November [7][8] - The launch of OmniPlus, a next-generation marketing operating system, is anticipated to enhance client services and internal operations [9][11] - The integration planning aims to exceed expected synergies from the acquisition, with a disciplined approach to minimize operational disruption [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects and the value expected from the acquisition of Interpublic [12] - The operating environment remains challenging, but the company is optimistic about capturing project work in Q4 [39][40] - Management noted that despite macroeconomic challenges, the fundamentals of the business remain strong, with no significant loss of personnel or business [40] Other Important Information - The company continues to maintain a strong liquidity position with cash equivalents and short-term investments totaling $3.4 billion [27] - Free cash flow for the nine months ended September 30 was impacted by acquisition-related and repositioning costs, but operating capital improved significantly [25][26] Q&A Session Summary Question: When will the market receive updates on pro forma financials post-acquisition? - Management indicated plans to disclose future operations and portfolio details around the week of CES in January [33] Question: What caused the deceleration in Precision Marketing? - The decline was primarily due to issues in the consulting business related to government work in major European cities, but the rest of the business remains strong [35] Question: Confirmation of organic growth guidance for the year? - Management confirmed that they are comfortable with the original guidance of 3% growth for the year [38] Question: How is the creative business performing within media growth? - The creative business is stable, with growth primarily driven by the media side [46] Question: What are the biggest opportunities for revenue synergies post-acquisition? - Key opportunities identified include media business expansion, healthcare portfolio enhancement, and improvements in precision marketing [72]

Financial Data and Key Metrics Changes - In Q3 2025, revenue grew 23% to $2.5 billion, with pro forma operating margin at 39% and pro forma earnings per share increasing by 30% [19][32][36] - Pro forma gross margin for the quarter was 68%, down from 69.1% in Q3 of the previous year, attributed to tariffs and a greater mix of lower-margin revenue [33] - Pro forma net income for Q3 was $867 million, compared to $669 million last year, with pro forma earnings per share at $2.40 [36][37] Business Line Data and Key Metrics Changes - Total procedure growth was 20%, with da Vinci procedures increasing by 19% and ION procedures by 52% [19][20][7] - The installed base of da Vinci systems increased by 13% to nearly 10,800 systems, while average system utilization grew by 4% [20][21] - ION platform saw a 52% increase in procedures, with the installed base up by 30% to approximately 950 systems [20][21] Market Data and Key Metrics Changes - In the U.S., total procedures increased by 18%, with da Vinci procedures growing by 16% and ION procedures by 48% [21][23] - Outside the U.S., total procedures grew by 25%, driven by strong results in India, Canada, Korea, Taiwan, and Brazil [23][24] - Average system utilization in international markets grew by 8% in Q3, reflecting strong multi-specialty procedure growth [24] Company Strategy and Development Direction - The company aims to focus on the full launch of da Vinci V, increasing adoption of focused procedures, and driving progress in product quality and manufacturing optimization [16] - Plans to offer refurbished Xi systems as part of a broader portfolio to expand access in certain geographies [9] - The company is committed to enhancing digital tools and integrating AI and machine learning into surgical processes [96] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for da Vinci V and the potential for increased utilization as more systems are adopted [6][19] - The company updated its 2025 guidance for da Vinci procedure growth to a range of 17% to 17.5% [44] - Management acknowledged challenges in the bariatric market and competitive pressures in China but remains focused on navigating these dynamics [88][89] Other Important Information - The company placed 427 da Vinci systems in Q3, a 13% increase from the previous year, with 240 being da Vinci V systems [26][28] - Service revenue increased by 20% to $396 million, reflecting a 13% increase in the da Vinci installed base [32] - The company ended the quarter with $8.4 billion in cash and investments, down from $9.5 billion last quarter, primarily due to share repurchases [37] Q&A Session Summary Question: Trends driving procedure volume growth and sustainability - Management noted strong growth in U.S. da Vinci procedures, with Q3 growth at 16%, driven by benign general surgery and elective procedures [50][51] Question: Refurbished Xi systems and market potential - Management highlighted the importance of refurbished Xi systems for cost-sensitive customers and noted that 20 refurbished XIs have been sold so far [59][60] Question: Utilization of da Vinci systems in ASCs - Management indicated that capital costs are a greater constraint than sterilization challenges for ASCs, with a focus on increasing interest in the ASC market [102][104] Question: Impact of haptics and force feedback technology - Management discussed the potential of da Vinci V to make robotic surgery more ubiquitous, particularly in benign general surgery [107]

Financial Data and Key Metrics Changes - Organic growth for Q3 2025 was 2.6%, with a year-to-date growth of 3%, aligning with annual guidance [4][8] - Non-GAAP adjusted EBITDA for Q3 2025 was $551.6 million, with an adjusted EBITDA margin of 16.1%, up 10 basis points from the previous year [4][9] - Non-GAAP adjusted net income per share increased by 10.3% to $2.24 compared to Q3 2024 [4][9] - Net interest expense increased due to lower interest income, with an estimated increase of approximately $7 million in Q4 compared to the same quarter last year [10][11] Business Line Data and Key Metrics Changes - Media and advertising revenues grew by 9%, while creative services were impacted by lower project work due to macroeconomic uncertainty [11][12] - Precision marketing growth was just under 1%, with solid growth in the U.S. offset by declines in Europe [11][12] - Public relations declined by 8%, primarily due to the absence of U.S. national election-related revenue [12] - Healthcare revenues decreased by 2% organically, with declines in both U.S. and European agencies [12][13] - Branding and retail commerce was down 17%, and experiential declined by 18% due to tough comparisons with the Summer Olympics [13][14] Market Data and Key Metrics Changes - U.S. revenue growth was 4.6%, while the UK saw growth of 3.7%, but continental Europe experienced a decline of 3.1% [14] - Non-Euro markets delivered organic growth, but this was offset by declines in the events business [14][15] Company Strategy and Development Direction - The company is focused on the integration of the proposed acquisition of Interpublic Group of Companies, with plans to close the acquisition by late November [4][5] - The launch of Omni+, a next-generation marketing operating system, is anticipated to enhance client services and operational efficiency [5][6] - The integration planning aims to exceed expected synergies from the acquisition, with a disciplined approach to minimize disruption [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding synergies from the IPG acquisition and highlighted strong new business wins [7][8] - The company remains optimistic about growth prospects despite macroeconomic challenges, with a focus on maintaining operational efficiency [6][27] - Management noted that the fundamentals of the business remain strong, with underlying growth of approximately 4% when excluding the impact of significant events from the previous year [27] Other Important Information - The company continues to maintain a strong balance sheet, with cash equivalents and short-term investments totaling $3.4 billion [18] - Free cash flow for the nine months ended September 30, 2025, was impacted by acquisition-related costs and repositioning costs [16][17] Q&A Session Summary Question: When will pro forma financials be available post-acquisition? - Management indicated plans to disclose future operations and portfolio details shortly after the acquisition, likely around CES in January [22][23] Question: What caused the deceleration in precision marketing? - The decline was attributed to cutbacks in government work in major European cities, particularly affecting the Cordara consulting business [23][24] Question: Confirmation of organic growth guidance for the year? - Management confirmed comfort with original guidance, indicating a year-end growth expectation around 3% [25][26] Question: Opportunities for revenue synergies post-acquisition? - Key opportunities identified include media, healthcare, and precision marketing, with expectations for significant growth in these areas [56][58]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $4.7 billion, reflecting a 7% sequential increase and a 14% year-over-year increase [4] - Gross profit was $2.7 billion, representing 57% of revenue, with a sequential decrease of 50 basis points [8] - Operating profit was $1.7 billion, or 35% of revenue, up 7% from the previous year [9] - Net income was $1.4 billion, translating to $1.48 per share, which included a $0.10 reduction due to restructuring charges [9][10] - Free cash flow for the trailing twelve months was $2.4 billion, with $6.6 billion returned to shareholders over the past year [11][12] Business Line Data and Key Metrics Changes - Analog revenue grew 16% year-over-year, while Embedded Processing revenue increased by 9% [4] - The Other segment saw an 11% year-over-year growth [4] - The industrial market increased by approximately 25% year-over-year and low single digits sequentially [6] - The automotive market grew upper single digits year-over-year and around 10% sequentially [6] - Personal electronics grew low single digits year-over-year and upper single digits sequentially [6] - Enterprise Systems revenue increased about 35% year-over-year and 20% sequentially [6] - Communications Equipment grew about 45% year-over-year and 10% sequentially [6] Market Data and Key Metrics Changes - The overall semiconductor market recovery is ongoing but at a slower pace than previous upturns, influenced by macroeconomic dynamics [5] - Customer inventories remain low, and inventory depletion appears to be behind the company [5] Company Strategy and Development Direction - The company is focused on long-term value creation through disciplined capital allocation and strengthening competitive advantages in manufacturing and technology [14] - The company plans to continue investing in its broad product portfolio and diverse market positions [14] - The company is winding down its six-inch fabs, which is expected to gradually reduce costs through 2026 [26] Management's Comments on Operating Environment and Future Outlook - Management noted a moderate recovery in the semiconductor market, with hesitancy among customers regarding new investments due to uncertainty in regulations and tariffs [80] - The automotive market is recovering, while the data center market is experiencing strong growth, with investments increasing [82] - The company expects Q4 revenue to be in the range of $4.22 billion to $4.58 billion, with earnings per share between $1.13 and $1.39 [13] Other Important Information - The company announced a 4% increase in dividends, marking the 22nd consecutive year of dividend increases [11] - The effective tax rate is expected to be around 13% for Q4 and 2026 [13] Q&A Session Summary Question: Can you talk about the linearity of bookings through the quarter? - Management indicated that the quarter followed expected patterns, with no significant deviations compared to Q2 [16][17] Question: What about loadings assumed in Q4? - Management confirmed that loadings would be adjusted down in Q4 to manage inventory levels effectively [21][22] Question: Can you elaborate on the restructuring and its impact on expenses? - The restructuring is related to winding down certain fabs and is expected to yield cost reductions over time [25][28] Question: How is the pricing environment? - Management expects a low single-digit price reduction for the year, consistent with previous trends [36] Question: What is the outlook for China? - Management noted that China returned to normal conditions in Q3, with expectations for continued stability into Q4 [68][70] Question: What is the expected CapEx for next year? - Management indicated that CapEx is likely to be at the lower end of the previously outlined range due to the moderate recovery [72][74] Question: Can you discuss the strong performance in communications equipment? - Management explained that the growth in communications equipment is tied to data center investments and will be further detailed in future reports [95]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $276 million, up 3% year-over-year, and up 7% when excluding license and maintenance revenue [23] - Cloud revenue increased by 21% to $105 million, slightly better than expected [23] - Services revenue declined by 3% to $133 million, with a shift of approximately $2 million of service revenue from Q4 to Q3 [23][24] - Adjusted operating profit was $103 million, with an adjusted operating margin of 37.5%, up about 40 basis points year-over-year [26] - Adjusted earnings per share (EPS) for Q3 was $1.36, up 1%, while GAAP EPS was $0.96, down 7% [27] - Operating cash flow increased by 49% to $93 million, resulting in a 32% free cash flow margin [28] Business Line Data and Key Metrics Changes - RPO (Remaining Performance Obligations) increased by 23% year-over-year to $2.1 billion [24] - Win rates remained strong at 70%, with new logos representing approximately 35% of the pipeline [6][7] - The company experienced a meaningful sequential uptick in conversions and a growing pipeline of future conversion opportunities [5] Market Data and Key Metrics Changes - The company noted a diverse end market presence, including sectors such as retail, grocery, food distribution, life sciences, and technology [7] - The global macro environment remains volatile, impacting performance but not significantly altering demand [22] Company Strategy and Development Direction - The company is focused on strategic investments to drive new customer acquisition, cross-selling, and converting on-premise customers to the cloud [35] - The introduction of a dedicated renewal team and a conversion program aims to enhance customer engagement and accelerate cloud adoption [11][12] - The company plans to leverage AI capabilities through agentic.ai to enhance operational efficiency and customer productivity [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term opportunities, citing strong business fundamentals and a solid pipeline [6] - The company expects to achieve the high end of its RPO outlook for 2025 despite ongoing macro uncertainties [24][31] - For 2026, the company anticipates 20% cloud revenue growth and a return to growth in services [33] Other Important Information - The company announced the appointment of Greg Betts as Chief Operating Officer, who will focus on scaling operational frameworks and enhancing partner models [12] - The company is investing in its sales and marketing teams to support growth initiatives [10] Q&A Session Summary Question: Can you share more on RPO levels and visibility for 2026? - Management noted a 23% increase in RPO year-over-year and highlighted a major renewal cycle coming up, which provides optimism for future RPO levels [38] Question: What are the strategies for converting on-premise customers to cloud? - The company is taking a more proactive approach to conversions, offering fixed fee and timeline conversions to active warehouse, which has seen early success [44] Question: How is the fourth quarter looking compared to last year? - Management indicated a strong start to Q4, with expectations of a performance similar to the previous year [50] Question: What is the impact of AgenTik AI on operations? - Internally, the company is leveraging AgenTik AI to enhance productivity across departments, and externally, it aims to preserve margins while exploring revenue growth opportunities [100][102] Question: What are the challenges in the point of sale business? - The point of sale segment is experiencing significant growth, with an 80% year-over-year increase in transactions, driven by retail customer expansion [112]