BioMarin Pharmaceutical (NasdaqGS:BMRN) Q3 2025 Earnings Call October 27, 2025 04:30 PM ET Company ParticipantsZaki Molvi - Senior Associate of Biotechnology Equity ResearchJulian Pino - Senior Associate of Biotechnology Equity ResearchTraci McCarty - Head of Investor RelationsAlexander Hardy - President and CEOCristin Hubbard - Chief Commercial OfficerChris Raymond - Managing DirectorBrian Mueller - CFOGreg Friberg - Chief Research and Development OfficerConference Call ParticipantsSalveen Richter - Biotec ...

Financial Data and Key Metrics Changes - BioMarin reported an 11% year-over-year increase in total revenue, with cash and investments reaching approximately $2 billion at the end of Q3 2025 [5][6][15] - The company raised its full-year 2025 total revenue guidance to a range of $3.15 billion, reflecting strong performance and operational efficiencies [12][15] - Non-GAAP diluted earnings per share guidance was updated to between $3.50 and $3.60, with an operating margin guidance of 26% to 27% [15][17] Business Line Data and Key Metrics Changes - The Enzyme Therapies business unit experienced 8% year-to-date growth, with Palynziq and VoxoGo each increasing by over 20% year-to-date [12][19] - VoxoGo revenue is expected to reach between $900 million and $935 million for the full year 2025, with a 24% increase year-to-date compared to 2024 [6][12][20] - The Skeletal Conditions business unit, driven by FOXOGO, is projected to generate over $900 million in revenue for 2025, representing a 25% growth at the midpoint of guidance [6][19] Market Data and Key Metrics Changes - Approximately 75% of year-to-date VoxoGo revenue was generated outside the U.S., indicating strong international demand [20][21] - VoxoGo is now available in 55 countries, with significant growth in patient numbers quarter-over-quarter [20][21] Company Strategy and Development Direction - BioMarin is focusing on strategic investments in the Enzyme Therapies and Skeletal Conditions business units while pursuing options to divest ROCTAVIAN [9][10] - The company aims to expand its global footprint and deepen penetration in existing markets, particularly for VoxoGo and upcoming indications [20][21] - Future growth is anticipated through new product launches and business development opportunities, with a focus on advancing internal pipelines [11][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record commercial results for the full year, despite challenges from potential competition [5][11] - The company is monitoring various market dynamics and has developed multiple scenarios for future revenue, particularly concerning VoxoGo competition [17][42] - Management emphasized the importance of maintaining value-creating activities while pursuing operational efficiencies [75] Other Important Information - A charge of $221 million for acquired in-process research and development related to the Enizyme Pharma acquisition impacted Q3 results [14] - The company is preparing for pivotal data readouts and potential new approvals in the coming quarters, particularly for hypochondroplasia and BMN 333 [36][37] Q&A Session Summary Question: Can you elaborate on the 2027 guidance and the changes since it was initially issued? - Management indicated that various factors, including potential VoxoGo competition and the acquisition of Inozyme, influenced the revised outlook, leading to a range of estimates rather than a specific forecast [39][42] Question: Why were VoxoGo sales down quarter-over-quarter? - Management noted that the decline was due to timing shifts in larger orders and reaffirmed the total revenue range for VoxoGo for the year [48][50] Question: What is the company's strategy for business development? - Management highlighted a focus on early-stage collaborations and Phase III assets, emphasizing that business development remains a high priority [52][54] Question: What are the expectations for the upcoming BMN 333 data? - Management stated that they are looking for significant increases in free CNP levels to demonstrate clinical superiority over VoxoGo [64][66] Question: Can you clarify the 2027 cash flow targets? - Management confirmed that the cash flow targets are tied to revenue scenarios and emphasized ongoing optimization initiatives [79][80]

Financial Data and Key Metrics Changes - Q3 subscription revenue grew 19% to $286 million, representing 96% of total revenue [24][4] - Confluent Cloud revenue increased 24% to $161 million, accounting for 56% of subscription revenue compared to 54% in the previous year [24][4] - Non-GAAP operating margin expanded three percentage points to approximately 10% [4] - Subscription gross margin was 81.8%, above the long-term target of 80% [26] - Operating margin increased 340 basis points to a record 9.7%, exceeding guidance by 270 basis points [26] - Adjusted free cash flow margin increased 450 basis points to 8.2% [26] Business Line Data and Key Metrics Changes - Confluent Platform revenue grew 14% to $125.4 million, driven by demand in financial services [24] - Flink ARR for Confluent Cloud grew more than 70% sequentially, with over 1,000 customers using Flink [31][7] - The number of customers with $100k+ ARR increased to 2,533, up 36 sequentially [27] - The number of customers with $1 million+ ARR increased to 234, representing a growth acceleration of 27% [27] Market Data and Key Metrics Changes - Revenue from the U.S. grew 13% to $172.1 million, while revenue from outside the U.S. grew 29% to $126.4 million [24] - Net retention rate stabilized at 114%, with gross retention rate close to 90% [27] Company Strategy and Development Direction - The company is focused on tightening field alignment to drive more use cases into production and expanding its DSP specialist team for multiproduct selling [6][7] - The partner ecosystem sourced over 25% of new business in the last twelve months, indicating strong growth potential [10][11] - The company aims to position itself as a leader in providing real-time data context for AI applications, emphasizing the importance of data streaming in AI deployment [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong cloud consumption growth and the overall performance of the data streaming platform [22][36] - The company expects subscription revenue for 2025 to be in the range of $295.5 million to $296.5 million, representing approximately 18% growth [29] - For fiscal year 2025, subscription revenue is expected to be between $1.1135 billion and $1.1145 billion, indicating approximately 21% growth [29] Other Important Information - The company highlighted the successful integration and growth of WarpStream, which has seen eightfold growth in consumption since its acquisition [14][35] - The company has maintained a win rate above 90% in replacing CSP streaming offerings, with average deal sizes more than doubling over the past two quarters [11][12] Q&A Session Summary Question: Insights on go-to-market changes and pipeline conversion trends - Management noted that the specialization model for DSP and field execution improvements have driven strong pipeline progression, with high confidence in the late-stage pipeline [40][41] Question: RPO and CRPO as leading indicators - Management confirmed that RPO is a key leading indicator for the Confluent platform, while for Confluent Cloud, the focus is on new use cases moving into production [45][46] Question: Growth outlook and cannibalization effects - Management indicated that new offerings have proven to be a substantial tailwind, leading to larger deal sizes and increased customer engagement [54] Question: Flink adoption and future business impact - Management expressed excitement about Flink's growth and its potential to drive significant business opportunities in the future [76][78] Question: AI use cases and customer readiness - Management highlighted various AI use cases across industries, emphasizing the importance of data flow and quality in achieving successful AI deployments [86][87]

Financial Data and Key Metrics Changes - F5 reported exceptional fiscal year 2025 results, exceeding $3 billion in revenue and $1 billion in operating profit, with revenue growth of 10% and earnings per share growth of 18% [4] - Gross margins improved to 83.6%, up 80 basis points from FY24, and operating margins increased to 35.2%, up 160 basis points from FY24 [4] - Free cash flow reached a record $906 million, up 19% compared to FY24, resulting in a free cash flow margin of 29% [13] Business Line Data and Key Metrics Changes - Q4 revenue grew 8% to $810 million, with global services revenue at $396 million (up 2% year-over-year) and product revenue at $414 million (up 16% year-over-year) [10] - Systems revenue totaled $186 million, up 42% year-over-year, driven by tech refresh and data center modernization [10] - Software revenue was $229 million, slightly up against a strong Q4 of FY24, with perpetual license software up 25% year-over-year [11] Market Data and Key Metrics Changes - Revenue from the Americas grew 7% year-over-year, representing 57% of total revenue, while EMEA and APAC grew 7% and 19%, representing 26% and 17% of revenue, respectively [11] - Enterprise customers accounted for 73% of Q4 product bookings, with government customers at 19% and service providers at 8% [11] Company Strategy and Development Direction - F5's immediate focus is on incident response and enhancing security posture following a security incident, with significant investments in cybersecurity planned for the future [5][7] - The company aims to leverage hybrid multi-cloud adoption and AI-driven infrastructure demand as key growth drivers, with a commitment to innovation in its Application Delivery and Security Platform [21][22] - F5 is transitioning legacy offerings to F5 Distributed Cloud Services, expecting to complete this transition in the first half of FY26 [15] Management's Comments on Operating Environment and Future Outlook - Management anticipates some near-term disruption to sales cycles due to the security incident, with guidance for FY26 revenue growth in the range of 0 to 4% [18] - The company expects to see a return to growth in revenue from SaaS and managed services, driven by the completion of legacy transitions and ongoing demand for hybrid multi-cloud solutions [17] - Management expressed confidence in the long-term growth potential, citing strong demand drivers and a robust pipeline [17] Other Important Information - F5's total security revenue grew 6% to approximately $1.2 billion, representing 39% of total revenue [16] - The company has seen significant growth in AI-related use cases, securing wins with over 30 customers for AI data delivery, runtime security, and factory load balancing [26][27] Q&A Session Summary Question: What form of conservatism has been put into estimates? - Management indicated that customer conservatism may manifest as delays in purchasing decisions and resource allocation towards upgrading environments due to the security incident [36][38] Question: How much of fiscal 2025 growth was due to the product upgrade cycle? - Approximately two-thirds of the systems business growth in FY2025 was attributed to tech refresh, with the remainder from data center capacity expansion [40] Question: How is the potential impact from the security breach sized? - Management took a granular approach to profile revenue streams, identifying which could be more impacted and which would be resilient, with a focus on recurring revenue streams [44][46] Question: What percentage of revenue comes from F5 BIG-IP? - While specific revenue breakdowns are not provided, F5 BIG-IP is noted as the highest revenue product [54] Question: What are the implications of the government shutdown on U.S. Federal business? - Guidance assumes some level of disruption in the federal segment, particularly in Q1, due to project delays related to the government shutdown [78]

Financial Data and Key Metrics Changes - F5 achieved record revenue exceeding $3 billion and operating profit of $1 billion for the first time, with revenue growth of 10% and earnings per share growth of 18% [7][8] - Gross margins improved to 83.6%, up 80 basis points year-over-year, and operating margins increased to 35.2%, up 160 basis points year-over-year [8] - Free cash flow reached $906 million, up 19% compared to FY 2024, highlighting strong financial execution [20] Business Line Data and Key Metrics Changes - Q4 revenue grew 8% to $810 million, with product revenue at $414 million (up 16% year-over-year) and global services revenue at $396 million (up 2% year-over-year) [14] - Systems revenue increased by 42% to $186 million, driven by tech refresh and data center modernization [14] - Software revenue totaled $229 million, slightly up against a strong FY 2024, with perpetual license software up 25% year-over-year [15] Market Data and Key Metrics Changes - Revenue from the Americas grew 7% year-over-year, representing 57% of total revenue, while EMEA and APAC grew 7% and 19%, representing 26% and 17% of revenue, respectively [16] - Enterprise customers accounted for 73% of Q4 product bookings, with government customers at 19% and service providers at 8% [17] Company Strategy and Development Direction - F5's strategy focuses on enhancing security and supporting customers through incident response, with significant investments in cybersecurity [12][24] - The company aims to leverage hybrid multi-cloud adoption and AI infrastructure demand as key growth drivers moving forward [29][36] - F5 is committed to maintaining a strong operating margin while navigating potential near-term disruptions due to recent security incidents [25][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential near-term impacts on sales cycles due to customer focus on security upgrades, with guidance for FY 2026 revenue growth in the range of 0% to 4% [25][49] - The company remains optimistic about long-term growth driven by hybrid multi-cloud architectures and AI readiness [24][29] - Management emphasized the importance of customer relationships and transparency during the incident response process [13][64] Other Important Information - F5's total security revenue grew 6% to approximately $1.2 billion, representing 39% of total revenue [23] - The company plans to continue using at least 50% of free cash flow for share repurchases in FY 2026 [27] Q&A Session Summary Question: What form of conservatism have you put into the estimates? - Management indicated that resources have been focused on assisting customers with upgrades, which may temporarily disrupt normal sales cycles [50][51] Question: How do you size the potential impact from the security breach? - Management took a granular approach to profile revenue streams, assessing which could be more impacted and which would be resilient [60][62] Question: What percentage of revenue comes from BIG IP? - Management confirmed that BIG IP is the highest revenue product but does not break out specific contributions [72] Question: What drives software and system growth from here? - Management highlighted ongoing trends in multi-year software agreements and the transition to hybrid multi-cloud architectures as key growth drivers [86][88]

Financial Data and Key Metrics Changes - Q3 subscription revenue grew 19% to $286.3 million, representing 96% of total revenue [19][20] - Confluent Cloud revenue increased 24% to $161 million, accounting for 56% of subscription revenue compared to 54% in the previous year [19][20] - Non-GAAP operating margin expanded 3 percentage points to approximately 10% [3] - Subscription gross margin was 81.8%, exceeding the long-term target of 80% [20] - Operating margin increased 340 basis points to a record of 9.7% [20] - Adjusted free cash flow margin rose 450 basis points to 8.2% [20] Business Line Data and Key Metrics Changes - Confluent Platform revenue grew 14% to $125.4 million, driven by demand in financial services [19] - Flink ARR for Confluent Cloud grew more than 70% sequentially, with over 1,000 customers using Flink [25][26] - The number of $100K+ ARR customers increased to 1,487, marking the largest sequential increase in two years [21] - The $1 million+ ARR customer count rose to 234, representing a 27% growth acceleration [21] Market Data and Key Metrics Changes - Revenue from the U.S. grew 13% to $172.1 million, while revenue from outside the U.S. grew 29% to $126.4 million [20] - RPO (Remaining Performance Obligations) grew 43%, indicating strong future revenue visibility [24] Company Strategy and Development Direction - The company is focusing on tightening field alignment to drive more use cases into production, with over 40% sequential growth in late-stage pipeline [4][24] - There is a strong emphasis on expanding the Data Streaming Platform (DSP) and multi-product selling, particularly with Flink [5][26] - The partner ecosystem is contributing significantly, with over 25% of new business sourced from partners [8][26] - The company aims to position its Data Streaming Platform as the context layer for enterprise AI, facilitating the transition from AI experimentation to production [16][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong cloud consumption growth and the traction of the Data Streaming Platform, particularly with Flink [17][27] - The outlook for Q4 2025 includes expected subscription revenue in the range of $295.5 to $296.5 million, representing approximately 18% growth [22] - For fiscal year 2025, subscription revenue is expected to be between $1.1135 to $1.1145 billion, indicating approximately 21% growth [23] Other Important Information - The company ended Q3 with $1.99 billion in cash, cash equivalents, and marketable securities, reflecting a strong balance sheet [20] - The WarpStream acquisition has seen 8x growth in consumption since its acquisition [11][26] Q&A Session Summary Question: Insights on go-to-market changes and pipeline conversion trends - Management highlighted the effectiveness of the specialization model for DSP and the high confidence in the late-stage pipeline, which is expected to drive future consumption [29][30] Question: RPO and CRPO as leading indicators - RPO is considered a key leading indicator for Confluent Platform, while for Confluent Cloud, the focus is on the momentum of new use cases moving into production [31][32] Question: Growth stabilization and cloud business outlook - Management noted that the cloud business has shown stability, with positive trends in new use cases and product adoption [34] Question: Impact of new offerings on core streaming business - New offerings have proven to be a substantial tailwind, leading to larger deal sizes and increased customer engagement [37] Question: Flink's growth and future potential - Flink has seen significant adoption, with over 1,000 paying customers, and management is optimistic about its future growth potential [56] Question: AI use cases and customer readiness - Management indicated that AI use cases are broad, with many enterprises actively pursuing projects across various sectors [61]

Agilysys (NasdaqGS:AGYS) Q2 2026 Earnings Call October 27, 2025 04:30 PM ET Speaker0Ladies and gentlemen, today's conference will begin in two minutes. Thank you for standing by. Again, the conference will begin in two minutes. Thank you. Good day, ladies and gentlemen, and welcome to the Agilysys twenty twenty six Second Quarter Conference Call.As a reminder, today's conference may be recorded. I would now like to turn the conference over to Jessica Hennessy, Vice President of Operations and Investor Relat ...

Financial Data and Key Metrics Changes - Fully diluted earnings per share were $1.20, a 29% increase year-over-year and a 13% increase from the previous quarter [3] - Net interest margin improved for the sixth consecutive quarter, rising by seven basis points to 2.46% [3] - Return on common equity improved to 13.6% for the quarter [3] - Average deposits increased by 7% annualized [3] Business Line Data and Key Metrics Changes - Average balance of deposits contributed to the growth in net interest income, which increased by $7 million [15] - Noninterest income rose to $46 million, up from $44.8 million in the previous quarter, driven by higher customer derivative activity and trust earnings [19] - Noninterest expense was $112.4 million, compared to $110.8 million in the prior quarter, influenced by a severance-related charge [20] Market Data and Key Metrics Changes - Bank of Hawaii advanced its number one deposit market share position in Hawaii by 40 basis points as of June 30, 2025 [4] - The loan portfolio is predominantly secured, with 86% of the consumer portfolio consisting of residential mortgage or home equity [9] - The commercial real estate portfolio is well diversified, with no sector representing more than 7% of total loans [10] Company Strategy and Development Direction - The company aims to leverage its dominant market position and brand strength to build wealth market share, particularly in the affluent segment [6][7] - A partnership with Saterra is expected to modernize the broker-dealer platform, enhancing client experience and attracting advisors [7] - The company is focused on improving coordination between commercial and wealth teams to drive cross-marketing opportunities [7] Management's Comments on Operating Environment and Future Outlook - Management anticipates further expansion of net interest margin for several quarters moving forward [5] - The outlook for loan growth remains in the low single digits, with expectations for improvement in the pipeline [32] - Management is optimistic about the potential for capital deployment into share repurchases in the near future [42] Other Important Information - The allowance for credit losses on loans and leases ended the quarter at $148.8 million, with a ratio of 1.06% [14] - The company declared a dividend of $0.70 per common share for the fourth quarter of 2025 [24] Q&A Session Summary Question: Spot rate on total deposits - Total spot rate on deposits is 154 basis points [27] Question: Outlook for achieving 3% NIM - Management believes a 25 basis point increase in NIM per year is reasonable, with potential upside as Fed Funds rates decrease [30][31] Question: Commentary on loan growth outlook - Management expects low single-digit growth to continue, with Q4 anticipated to be better than Q3 [32][33] Question: Changes in wealth management strategy - The partnership with Saterra is progressing well, and the company is focused on enhancing client experience and attracting top advisors [36][38] Question: Capital return and buyback plans - Management is considering share repurchases and is satisfied with current capital levels [41][42] Question: Impact of de-risking on growth - De-risking has not been a headwind for growth, and current portfolios are not expected to impede future growth [46] Question: Expense growth outlook for 2026 - Expected expense growth for 2026 is projected to be in the 3% range [50]

Financial Data and Key Metrics Changes - Fully diluted earnings per share were $1.20, a 29% increase year-over-year and a 13% increase from the previous quarter [3] - Net interest margin improved for the sixth consecutive quarter, rising by seven basis points to 2.46% [3] - Return on common equity improved to 13.6% for the quarter [3] - Average deposits increased by 7% annualized [3] Business Line Data and Key Metrics Changes - The loan portfolio is balanced between consumer and commercial, with consumer loans representing 57% or $7.9 billion of total loans [9] - Commercial loans accounted for $6.1 billion, or 43% of total loans, with 73% secured by real estate [9] - Noninterest income increased to $46 million during the quarter, compared to $44.8 million in the linked quarter [19] Market Data and Key Metrics Changes - Bank of Hawaii advanced its number one deposit market share position in Hawaii by 40 basis points as of June 30, 2025 [4] - The bank's market share has grown by 600 basis points since 2005, outperforming competitors in the Hawaii market [4] Company Strategy and Development Direction - The company aims to leverage its dominant market position and brand strength to build wealth market share, particularly in the affluent segment [6][7] - A partnership with Saterra is expected to modernize the broker-dealer platform, enhancing client experience and attracting top advisors [7] - The bank is focused on improving coordination between commercial and wealth teams to capitalize on cross-marketing opportunities [7] Management's Comments on Operating Environment and Future Outlook - Management anticipates further expansion of net interest margin for several quarters [5] - The outlook for loan growth remains in the low single digits, with expectations for improvement in the pipeline [32] - The company is optimistic about the wealth management segment and plans to continue investing in talent and resources [37] Other Important Information - The allowance for credit losses on loans and leases ended the quarter at $148.8 million, with a ratio of 1.06% [14] - The company recorded a provision for credit losses of $2.5 million, down from $3.3 million in the previous quarter [23] - Capital ratios remained above regulatory thresholds, with tier one capital at 14.3% and total risk-based capital at 15.4% [23] Q&A Session Summary Question: Spot rate on total deposits - The spot rate on total deposits is 154 basis points [27] Question: Outlook for net interest margin (NIM) - Management believes achieving a 3% NIM is possible, with a projected increase of 25 basis points per year [30] Question: Commentary on loan growth outlook - The guidance for loan growth remains in the low single digits, with expectations for improvement in Q4 [32] Question: Changes in wealth management strategy - The partnership with Saterra is progressing well, and the bank is focused on enhancing client experience and attracting top advisors [36] Question: Capital return and buybacks - The company is likely to engage in share repurchases in the current quarter and into next year [41] Question: Credit quality in the office sector - A relationship credit in the office space was exited, contributing to the reduction in Central Business District loans [55]

Financial Data and Key Metrics Changes - Fully diluted earnings per share were $1.2, a 29% increase year-over-year and a 13% increase from the previous quarter [4] - Net interest margin improved for the sixth consecutive quarter, up seven basis points to 2.46% [5] - Return on common equity improved to 13.6% for the quarter [5] - Net income for the quarter was $53.3 million, an increase of $5.7 million compared to the linked quarter [20] Business Line Data and Key Metrics Changes - Average deposits increased by 7% annualized, while end-of-period loans increased modestly [5] - Consumer loans represented over half of total loans at 57%, amounting to $7.9 billion [12] - Commercial loans totaled $6.1 billion, accounting for 43% of total loans [13] Market Data and Key Metrics Changes - Bank of Hawaii advanced its number one deposit market share position in Hawaii by 40 basis points as of June 30, 2025 [6] - The bank's market share has grown by 600 basis points since 2005, outperforming competitors in Hawaii [6] Company Strategy and Development Direction - The company aims to leverage its dominant market position and brand strength to build wealth market share, particularly in the affluent segment [9][10] - A partnership with Saterra is expected to modernize the broker-dealer platform, enhancing client experience and investment products [10] - The bank is focused on improving coordination between commercial and wealth teams to drive cross-marketing opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued expansion of net interest margin and expects to achieve $250 million by year-end [35] - The outlook for loan growth remains in the low single digits, with expectations for improvement in the fourth quarter [38] - Management is optimistic about the potential for further NIM improvement as Fed funds rates decrease [36] Other Important Information - Non-interest income increased to $46 million during the quarter, driven by higher customer derivative activity and elevated loan fees [25] - The company recorded a provision for credit losses of $2.5 million, down from $3.3 million in the linked quarter [28] - Capital ratios remained above regulatory thresholds, with Tier one capital improving to 14.3% [29] Q&A Session Summary Question: Spot rate on total deposits - The total spot rate on deposits is 154 basis points [33] Question: Timeline for achieving 3% NIM - Management believes a 25 basis point pickup in NIM per year is reasonable, with potential upside from Fed funds rate reductions [36][37] Question: Outlook for loan growth - The guidance for loan growth remains in the low single digits, with expectations for improvement in the pipeline [38] Question: Changes on the wealth side - The partnership with Saterra is in production, aiming to enhance client experience and attract top advisors [44][46] Question: Capital return and buybacks - Management is likely to engage in share repurchases in the current quarter and into next year, given the current capital levels [51][52]