Financial Data and Key Metrics Changes - Adjusted book value per share reached a record high of $181.37, and adjusted operating shareholders' equity per share also hit a record of $123.10 at the end of Q3 2025 [5] - Year-to-date adjusted operating income was $6.77 per share, reflecting a 17% increase compared to the same period last year [5] - Adjusted operating income for Q3 2025 was $124 million or $2.57 per share, compared to $130 million or $2.42 per share in Q3 2024 [14] Business Line Data and Key Metrics Changes - Financial guarantee production in Q3 2025 was $91 million of PVP, a 44% increase from Q3 2024 and a 42% increase from Q2 2025 [5] - U.S. public finance transactions totaled $7.9 billion of par in Q3 2025, up from $5.4 billion in Q3 2024 [8] - Secondary market U.S. public finance generated $32 million of PVP in the first nine months of 2025, compared to $5 million in the same period of 2024 [11] Market Data and Key Metrics Changes - U.S. municipal bond issuance increased by over $50 billion in the first nine months of 2025 compared to the record issuance in the same period of 2024 [9] - Assured Guaranty insured 63% of the total insured U.S. municipal market par sold in the first nine months of 2025, up from 57% in the same period of 2024 [9] Company Strategy and Development Direction - The company is looking to expand its insurance businesses into new sectors and markets while diversifying revenue sources for sustainable growth [7] - There is a focus on shorter duration structured finance transactions that allow for quicker capital recycling and better return on equity [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the domestic public finance market returning to normal activity levels after a skewed mix in earlier quarters [35] - The company sees significant growth opportunities in both U.S. public finance and global structured finance, particularly in infrastructure and regulatory capital needs [34][36] Other Important Information - The Board of Directors authorized an additional $100 million in share repurchases, bringing the total authorization to over $330 million [7] - The investment portfolio's performance has been enhanced by alternative investments, achieving an annualized internal rate of return of approximately 13% [7][17] Q&A Session Summary Question: Changes to the investment portfolio and allocation to higher-yielding sectors - Management is focused on optimizing yield while maintaining a safe portfolio with adequate liquidity [23] Question: Issues with Brightline transportation exposure - Management indicated that Brightline is experiencing typical startup growing pains but remains comfortable with their exposure [24] Question: Opportunities in the current data center CapEx cycle - The company is actively evaluating opportunities in data centers and has executed in new areas like liquid natural gas [27] Question: Pipeline for growing written premium into 2026 - Management sees great opportunities across all three financial guarantee lines of business, particularly in U.S. public finance and global structured finance [33][34] Question: Positive developments in Puerto Rico and PREPA exposure - Management emphasized the importance of a deal for recognizing the value of reserves and claims related to PREPA [38]

Financial Data and Key Metrics Changes - Adjusted book value per share reached a record high of $181.37, and adjusted operating shareholders' equity per share also reached a record high of $123.10 at the end of Q3 2025 [5] - Adjusted operating income for the year-to-date was $6.77 per share, an increase of approximately 17% compared to the same period last year [5] - Adjusted operating income in Q3 2025 was $124 million or $2.57 per share, compared to $130 million or $2.42 per share in Q3 2024 [14] Business Line Data and Key Metrics Changes - Financial guarantee production in Q3 2025 was strong, with $91 million of PVP, which is 44% more than Q3 2024 and 42% more than Q2 2025 [5] - U.S. public finance business produced $152 million of PVP year-to-date, benefiting from record U.S. municipal bond issuance [6] - Secondary market U.S. public finance strategy generated $32 million of PVP in the first nine months of 2025, compared to $5 million in the same period of 2024 [11] Market Data and Key Metrics Changes - U.S. municipal bond issuance increased by more than $50 billion year-to-date compared to the record issuance during the first nine months of 2024 [9] - Assured Guaranty insured 63% of the total insured U.S. municipal market par sold in the first nine months of 2025, up from 57% in the same period of 2024 [9] Company Strategy and Development Direction - The company is looking for strategic opportunities to expand its insurance businesses into new sectors and markets, aiming to diversify revenue sources for sustainable growth [7] - The focus on shorter duration structured finance transactions is expected to provide better returns on equity and quicker capital recycling [13][38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ability to produce and the expected production levels going forward, citing a return to normal business mix in Q3 2025 [36] - The company sees great opportunities in U.S. public finance and global structured finance, particularly in infrastructure and regulatory capital needs [35][36] Other Important Information - The investment portfolio's performance has been enhanced by greater use of alternative investments, achieving an annualized internal rate of return of approximately 13% [7][17] - The Board of Directors authorized an additional $100 million for share repurchases, bringing the total authorization to over $330 million [7][20] Q&A Session Summary Question: Changes to the investment portfolio and allocation to higher-yielding sectors - Management indicated that they aim to optimize yield while maintaining a safe portfolio with adequate liquidity [23] Question: Issues with Brightline transportation exposure - Management acknowledged typical growing pains for Brightline but expressed confidence in their exposure due to being in the senior most section of the capital stack [24] Question: Pipeline for growing written premium into 2026 - Management sees great opportunities across all three financial guarantee lines of business, particularly in U.S. public finance and global structured finance [34][36]

Financial Data and Key Metrics Changes - The company's leverage in dollar terms increased to 3.3 times, with stable net debt but a decline in EBITDA over the last 12 months due to lower pulp prices [6][7] - Cash cost production decreased by 7% compared to the third quarter of 2024, with cash costs running below BRL 800 per ton [4][5] Business Line Data and Key Metrics Changes - Significant reductions in wood costs were noted, driven by operational efficiencies and improved wood quality, contributing to lower specific consumption [3][4] - The cash cost of production ex-downtime is expected to be the most competitive in the fourth quarter of 2024-2025 [5] Market Data and Key Metrics Changes - Prices of domestic wood chips in China have increased, impacting the cash cost of production for Chinese producers [15][16] - The market for softwood is weaker compared to hardwood, with prices dropping due to an abundance of softwood in the Chinese market [17][18] Company Strategy and Development Direction - The company is focusing on reducing cash production costs and extracting value from recent investments, particularly in packaging and joint ventures [10][11] - Future CAPEX guidance for 2025 is set at BRL 13.3 billion, with expectations of a declining trend in CAPEX for subsequent years [9][65] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining cash costs below BRL 800 per ton and highlighted the importance of operational efficiencies [10][26] - The outlook for pulp prices remains cautious, with expectations of gradual price increases but limited optimism due to oversupply conditions [32][49] Other Important Information - The company has a healthy hedge portfolio with a total value of $6 billion, which could provide a positive cash impact of nearly BRL 2.5 billion over the next two years [8] - The company is committed to its guidance for 2027 and is confident in delivering on its targets [33] Q&A Session Summary Question: Dynamics of wood chips and softwood in the Chinese market - Management noted an uptick in prices for both domestic and imported wood chips in China, which is expected to increase cash costs for Chinese producers [15][16] Question: Cash cost trajectory and improvements - Management indicated that they aim to maintain cash costs below BRL 800 per ton and highlighted a 4% reduction in wood consumption per ton due to a new wood supply deal [25][26] Question: Expectations for London Pulp Week - Management expressed optimism about discussions on unsustainable market conditions and the potential for unexpected closures impacting supply dynamics [28][30] Question: Performance of the US packaging business - Management reported positive EBITDA contributions from the US packaging business and emphasized ongoing efforts to improve logistics and operational efficiency [38][39] Question: Updates on Lenzing investment - Management is currently analyzing trends and investment opportunities in Lenzing but has no immediate plans to increase their stake [37] Question: Long-term fundamentals for pulp - Management maintains a cautious view on the structural fundamentals for pulp, noting that while imports are increasing, local production remains stagnant [49] Question: Impact of floods in Southeast Asia on wood prices - Management acknowledged that recent floods have influenced wood chip prices in the short term, particularly in southern China and Vietnam [57][58] Question: Expansion CAPEX and future projects - Management indicated a declining trend in CAPEX for the next year, with fewer projects in the pipeline as major projects are completed [65]

Financial Data and Key Metrics Changes - The company's Q1 2026 net sales were $368 million, with an adjusted EBITDA of $20 million, consistent with expectations and similar to Q4 2025 [20][21] - Organic net sales declined by 6% year-over-year, showing a sequential improvement from an 11% decline in Q4 [20][21] - Adjusted gross margin decreased to 19.5%, down approximately 120 basis points year-over-year, primarily due to lower volume mix and cost inflation [20][21] - SG&A expenses decreased by 8% year-over-year to $66 million, representing 17.8% of net sales compared to 18.1% in the prior year [20][21] Business Line Data and Key Metrics Changes - In North America, organic net sales declined by 7%, driven by lower volume in snacks, but growth was seen in beverages, baby and kids, and meal prep [23] - International organic net sales declined by 4%, primarily due to lower sales in baby and kids, partially offset by growth in meal prep [24] - Snacks organic net sales were down 17% year-over-year, while baby and kids saw a decline of 10% [25][26] Market Data and Key Metrics Changes - In North America, tea and yogurt grew double digits at key online retailers, while the beverages category saw a 2% organic net sales growth driven by tea [17][26] - Internationally, Hartley's Jelly Pops and Sun Pops showed strong performance, particularly in September [17] Company Strategy and Development Direction - The company is focused on stabilizing sales, improving profitability, optimizing cash, and deleveraging the balance sheet [5][17] - A turnaround strategy is anchored in five key actions: streamlining the portfolio, accelerating brand renovation and innovation, implementing strategic revenue growth management and pricing, driving productivity and working capital efficiency, and strengthening digital capabilities [7][32] - The company plans to eliminate approximately 30% of its SKUs in North America by fiscal 2027 to improve supply chain efficiency [8] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer behavior is shifting towards value-seeking due to tighter budgets, impacting shopping patterns [43] - The company expects to see improvements in organic sales in the second half of the fiscal year, particularly in snacks and baby and kids categories [37][39] - Management is optimistic about the innovation pipeline and marketing investments planned for the second half of the year [30][32] Other Important Information - The company has taken $14 million in charges associated with restructuring, with total charges to date amounting to $103 million [21] - Free cash flow for the quarter was an outflow of $14 million, an improvement from an outflow of $17 million in the prior year [27] - The company closed the quarter with cash on hand of $48 million and net debt of $668 million, an increase from $650 million at the beginning of the fiscal year [28] Q&A Session Summary Question: Expectations for organic sales in Q2 - Management anticipates some moderation in the year-over-year rate of decline in organic sales in Q2, with a focus on improvements in the second half [37] Question: Elasticity of pricing in North America - Early data indicates that pricing on tea is in line with expectations, while baby category pricing is slower to roll through but also appears to be in line [39] Question: Consumer behavior in the current environment - Management noted a shift towards value-seeking behavior among consumers, with a focus on delivering value through better-for-you products [43]

Financial Data and Key Metrics Changes - The company's Q1 2026 net sales were $368 million, with an adjusted EBITDA of $20 million, consistent with expectations and similar to Q4 2025 [20][21] - Organic net sales declined by 6% year-over-year, showing a sequential improvement from an 11% decline in Q4 2025 [20][21] - Adjusted gross margin decreased to 19.5%, down approximately 120 basis points year-over-year, primarily due to lower volume mix and cost inflation [20][21] Business Line Data and Key Metrics Changes - In North America, organic net sales declined by 7%, driven by lower snack sales, but growth was seen in beverages, baby and kids, and meal prep [23] - The snacks category experienced a 17% decline in organic net sales, while baby and kids saw a 10% decline, attributed to industry-wide softness [25][26] - Adjusted EBITDA in North America increased by 37% to $17 million, driven by productivity savings and reduced SG&A expenses [23] Market Data and Key Metrics Changes - International organic net sales declined by 4%, primarily due to lower sales in baby and kids, partially offset by growth in meal prep [24] - International adjusted gross margin was 15.7%, approximately 530 basis points below the prior year, with adjusted EBITDA decreasing by 38% [24] Company Strategy and Development Direction - The company is focused on stabilizing sales, improving profitability, optimizing cash, and deleveraging the balance sheet [5][17] - A turnaround strategy is being executed, emphasizing five key actions: streamlining the portfolio, accelerating brand renovation and innovation, implementing strategic revenue growth management, driving productivity, and strengthening digital capabilities [7][33] - The company plans to eliminate approximately 30% of its SKUs in North America by fiscal 2027 to improve supply chain efficiency [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the fiscal year, expecting stronger performance driven by marketing investments and pricing actions [29][30] - The company is addressing consumer behavior shifts towards value-seeking, ensuring that its products provide nutritional value and quality [43][44] - Management noted that while there are challenges, the focus remains on executing the turnaround strategy and improving financial flexibility [32][33] Other Important Information - The company has taken $14 million in charges related to restructuring, with total charges to date amounting to $103 million [21] - Free cash flow for the quarter was an outflow of $14 million, an improvement from an outflow of $17 million in the prior year [27] - The company closed the quarter with cash on hand of $48 million and net debt of $668 million, reflecting seasonal funding needs [28] Q&A Session Summary Question: Expectations for organic sales in Q2 - Management anticipates moderation in the year-over-year rate of decline in organic sales for Q2, with a focus on improvement in the second half [36] Question: Pricing elasticity in North America - Early data indicates that pricing on tea aligns with expectations, while baby category pricing is slower to roll out but also appears in line with expectations [38][39] Question: Consumer behavior in the current environment - Management noted a shift towards value-seeking behavior among consumers, with a focus on delivering value through better-for-you products [43][44]

Financial Data and Key Metrics Changes - In Q3 2025, the company achieved record revenue of $298.7 million, reflecting a 17% year-over-year growth rate [8][20] - Adjusted EBITDA for the quarter was $63.5 million, resulting in an adjusted EBITDA margin of 21.2% [8][24] - Adjusted earnings per share (EPS) was $0.42, representing approximately 14% year-over-year growth [8][25] - The company ended the quarter with $210 million in cash and a net debt-to-adjusted EBITDA ratio of less than 0.2 times [8][26] Business Line Data and Key Metrics Changes - The Digital Customer Experience (DCX) service line saw single-digit year-over-year growth of approximately 6%, with revenue of $164.2 million [13][23] - Trust and Safety revenue increased by 19.1% year-over-year, driven by the social media vertical, totaling $75.8 million [13][23] - AI Services experienced significant growth of 60.8% year-over-year, resulting in $58.7 million in revenue [15][24] Market Data and Key Metrics Changes - Revenue from clients outside the top 20 grew approximately 6% year-over-year, while revenue from the top 10 and top 20 clients represented 60% and 71% of total revenue, respectively [21][22] - The company generated 54% of its revenues in the Philippines, 13% in India, 11% in the United States, and 22% from the rest of the world [22] Company Strategy and Development Direction - The company plans to shift from selling time-based services to selling solutions that combine technology and talent, focusing on AI consulting and services [9][11] - Investments will be significantly increased in agentic AI consulting and AI services, with a focus on automation and efficiency [9][11] - The company aims to enhance shareholder returns while pursuing a capital allocation strategy that supports long-term growth [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the slowing growth in the BPO industry but emphasized the company's strong performance relative to competitors due to operational excellence [9][12] - The company expects full-year 2025 revenue between $1.173 billion and $1.175 billion, representing approximately 18% year-over-year growth [17][27] - For Q4, the company anticipates revenue of $302 million to $304 million, reflecting approximately 11% year-over-year growth [17][28] Other Important Information - The proposed take-private transaction was terminated due to insufficient shareholder approval, which management views as a testament to high valuation expectations [5][6] - The company is committed to maintaining a strong balance sheet while investing in AI transformation initiatives [48] Q&A Session Summary Question: Plans operationally post-take-private transaction - Management plans to follow a strategy similar to what would have been pursued as a private company, focusing on AI transformation and investments in agentic AI consulting [33] Question: Outlook for sequential growth in Q4 - Management expects 11% year-over-year growth in Q4, with 9% growth when excluding the largest client, due to challenging comparisons from the previous year [38] Question: Sustainability of AI services growth - Management is confident that AI services will sustain double-digit growth over the long term, despite project-based revenue fluctuations [49] Question: Durability of spend from the largest customer - The relationship with the largest customer remains strong, with continued growth expected, although the pace may not match the previous year [52] Question: Investment strategy and its impact on P&L - Management indicated that they are still in the early stages of their investment cycle, with significant improvements in internal processes already observed [55]

Financial Data and Key Metrics Changes - The company exceeded adjusted EBITDA expectations despite ongoing macroeconomic challenges, driven by strong performance in Opteon Refrigerants and lower corporate costs [4][5] - Opteon sales grew by 80% year-over-year, accounting for 80% of total refrigerant sales, up from 58% the previous year, with a 35% adjusted EBITDA margin [5][6] - Consolidated fourth quarter net sales are expected to decrease by 10%-15% sequentially, with adjusted EBITDA projected between $130 million and $160 million [18] Business Line Data and Key Metrics Changes - The TSS business reported record Opteon sales, with double-digit growth and strong commercial execution [5][6] - APM business is expected to see low single-digit % decrease in net sales due to global industrial market weakness, with adjusted EBITDA anticipated at $30 million-$40 million [15] - TT business is projected to experience a sequential net sales decrease in the high single digits to low teens % range, primarily due to seasonality and destocking [16] Market Data and Key Metrics Changes - The company noted destocking activities in Western markets, which are expected to be short-term as customers preserve cash [8][10] - Fair trade actions in Europe and finalized actions in Brazil and Saudi Arabia are expected to provide longer-term opportunities in Western markets [10] - The company anticipates a modest recovery in demand in 2026, with restocking efforts expected in the first quarter [17] Company Strategy and Development Direction - The company continues to execute its Pathway to Thrive strategy, focusing on operational excellence, cost reduction, and portfolio management [19][25] - The company is exploring opportunities in critical minerals, with an estimated $90 million in annual mineral sales, leveraging government funding for innovative separation technologies [21][24] - The company is committed to improving its financial position and optimizing its real estate footprint to enhance operational efficiency [19][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit Opteon growth into early 2026, driven by OEM transitions [12][43] - The company remains focused on controlling costs and aligning production with anticipated demand, despite ongoing macroeconomic challenges [17][19] - Management acknowledged that operational disruptions experienced in 2025 are now resolved, positioning the company for improved performance in 2026 [36][54] Other Important Information - The company incurred higher-than-anticipated one-time costs related to liquid cooling product development, which are expected to decrease in the future [6][56] - The company is reviewing its business portfolio for potential value creation opportunities, including critical minerals and data centers [19][32] Q&A Session Summary Question: Insights on TSS business performance and expectations for 2026 - Management highlighted strong performance in TSS, with expectations for continued double-digit growth driven by a broad portfolio and effective quota management [29][30] Question: Concerns about managing multiple growth opportunities - Management expressed confidence in their ability to manage various initiatives under the Pathway to Thrive strategy, focusing on operational excellence and portfolio optimization [32][33] Question: Updates on operational performance within the TT business - Management confirmed that operational disruptions are resolved, and they are implementing contingency plans to enhance reliability [36][38] Question: Confidence in TiO2 price increases despite weak demand - Management indicated stability in pricing within fair trade markets and expressed confidence in customer restocking in early 2026 [39][40] Question: Impact of destocking on future performance - Management acknowledged the impact of destocking but emphasized that share gains and operational improvements will balance the effects [74] Question: Importance of architectural coatings to overall profit pool - Architectural coatings represent approximately 70% of the TT business, highlighting their significance [76] Question: Future of refrigerant gases and innovation - Management confirmed ongoing innovation in next-generation refrigerants, aiming to address environmental concerns [78] Question: Industry pricing and volume impacts from competitor actions - Management noted that competitor inventory liquidation would have a short-term impact, with expectations for recovery in the current quarter [89]

Financial Data and Key Metrics Changes - Docebo's Annual Recurring Revenue (ARR) increased by $2.5 million sequentially, reflecting a year-over-year growth of 14% when excluding the Dayforce business [5][7] - The company achieved a 20% EBITDA margin, marking a significant milestone in its financial performance [39][64] Business Line Data and Key Metrics Changes - The mid-market business exceeded performance expectations, benefiting from leadership changes and improved processes [7][8] - Core business retention improved, contributing positively to overall performance despite accelerated churn with Dayforce [8][32] Market Data and Key Metrics Changes - EMEA performance exceeded expectations with significant new customer acquisitions during the quarter [8] - The company is seeing increased interest in its offerings from state and local government sectors, driven by its FedRAMP certification [11][12] Company Strategy and Development Direction - Docebo is focusing on diversifying its revenue streams and enhancing its product offerings, particularly in AI capabilities [28][29] - The company is investing in partnerships with system integrators like Deloitte and Accenture to enhance its market penetration and support complex implementations [60][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline for federal contracts despite the government shutdown, indicating that it has not significantly impacted their business [11][17] - The company anticipates continued growth in the mid-market and enterprise segments, with expectations for a strong Q4 [19][78] Other Important Information - The Dayforce wind-down is expected to reduce its contribution to total revenues to approximately 3.5-4.5% in 2026 and become immaterial thereafter [25] - The introduction of AI credits is seen as a potential driver for future revenue growth and customer retention [81] Q&A Session Summary Question: Can you unpack the components of ARR growth? - Management confirmed a $2.5 million sequential increase in ARR, with a 14% growth year-over-year excluding Dayforce [5][7] Question: How is the FedRAMP initiative progressing? - The company has secured two new federal customers earlier than expected, indicating strong momentum in this area [10][11] Question: What is the outlook for the enterprise segment? - The enterprise segment continues to grow, with notable wins and expectations for a strong Q4 [19][78] Question: Can you provide details on the Dayforce wind-down? - The Dayforce contribution to revenues is expected to decline significantly over the next few years, with ongoing growth in other areas [25][44] Question: How is AI being integrated into the product offerings? - AI capabilities are being infused throughout the product, with a focus on enhancing customer experience and retention [28][29] Question: What is the impact of the AWS contract roll-off on ARR? - The AWS contract is expected to result in a $4 million hit to ARR, effective December 31 [74] Question: How are partnerships with system integrators evolving? - The company is strengthening relationships with major system integrators to enhance market presence and support complex implementations [60][84]

Financial Data and Key Metrics Changes - Victory Capital achieved record-high gross flows and net flows finished just under flat for the quarter, with total assets reaching $313 billion [4] - Adjusted EBITDA set a new all-time quarterly high at $191 million, resulting in an adjusted EBITDA margin of 52.7% [4][22] - Adjusted earnings per diluted share rose to a record $1.63, up 4% from the second quarter and 20% higher than the quarter immediately preceding the Amundi transaction [4][22] Business Line Data and Key Metrics Changes - Long-term gross flows rose 10% quarter over quarter to $17 billion, reflecting the expanded U.S. distribution team and strong sales outside the U.S. [4] - The ETF business, Victory Shares, saw year-to-date positive net flows of $5.4 billion, representing a 53% organic growth rate through the first nine months of the year [12] - Nearly half of the mutual fund and ETF AUM ranks in the top quartile based on Morningstar's three-year rankings [14] Market Data and Key Metrics Changes - 17% of total AUM was from investors outside the United States, indicating meaningful diversification into non-U.S. geographies [23] - The company currently manages $52 billion of AUM from clients outside the U.S. from 60 countries, where net flows remain positive [6] Company Strategy and Development Direction - The company aims to be a trillion-dollar firm, focusing on strategic acquisitions that enhance its competitive position and satisfy growth objectives [30][31] - The integration process at Pioneer Investments is ahead of plan, with approximately $86 million of net expense synergies achieved on a run-rate basis [5][25] - The company is investing in expanding its distribution capacity outside the U.S. and launching new UCITS products [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the distribution opportunities outside the U.S., particularly in Asia and the Middle East, where there is high demand for U.S. dollar-denominated products [10][11] - The company anticipates that the integration of Pioneer Investments will lead to significant growth in the non-U.S. segment starting in 2026 [38] Other Important Information - The company repurchased 1.8 million shares during the quarter and has $355 million of capacity remaining on its existing repurchase authorization [5][22] - The balance sheet remains strong with $116 million of cash and a net leverage ratio of 1.1 times, providing financial flexibility for growth initiatives [27] Q&A Session Summary Question: M&A Strategy and Focus - Management emphasized that all acquisitions will be strategic, aiming for size and scale to compete effectively in the long term [30][31] Question: Pioneer Acquisition Synergies - The company is ahead of synergy targets due to conservative planning and the identification of operational efficiencies [32][34] Question: Non-U.S. Business Performance - Positive net sales have primarily come from the Pioneer franchise, with expectations for increased flows into legacy Victory products in 2026 [38] Question: Inorganic Pipeline and Opportunities - The inorganic pipeline is full, with active discussions ongoing, and the environment for acquisitions has improved [50][51] Question: Integration Challenges with Alternatives - Management acknowledged the cultural differences between traditional and alternative investments and emphasized a careful approach to integration [52]

Financial Data and Key Metrics Changes - The first quarter net sales were $368 million, with an adjusted EBITDA of $20 million, consistent with expectations [20][21] - Organic net sales declined by 6% year-over-year, showing sequential improvement from an 11% decline in Q4 [22] - Adjusted gross margin was 19.5%, a decrease of approximately 120 basis points year-over-year, driven by lower volume mix and cost inflation [22] - SG&A expenses decreased by 8% year-over-year to $66 million, representing 17.8% of net sales [22][23] - Adjusted net loss was $7 million, or $0.08 per diluted share, compared to an adjusted net loss of $4 million or $0.04 per diluted share in the prior year [24] Business Line Data and Key Metrics Changes - In North America, organic net sales declined by 7%, primarily due to lower volume in snacks, but growth was seen in beverages, baby and kids, and meal prep [25] - Adjusted EBITDA in North America increased by 37% to $17 million, with an adjusted EBITDA margin of 8.3% [25] - International organic net sales declined by 4%, driven by lower sales in baby and kids, partially offset by growth in meal prep [26] - International adjusted gross margin was 15.7%, approximately 530 basis points below the prior year, with adjusted EBITDA of $13 million [26] Market Data and Key Metrics Changes - Organic net sales growth in snacks was down 17% year-over-year, while baby and kids saw a decline of 10% [27] - Beverages category experienced a 2% growth year-over-year, driven by tea in North America [28] - Meal preparation organic net sales growth was flat year-over-year, with strength in yogurt offset by softness in meat-free products [28] Company Strategy and Development Direction - The company is focused on stabilizing sales, improving profitability, optimizing cash, and deleveraging the balance sheet [5][19] - A turnaround strategy is anchored in five key actions: streamlining the portfolio, accelerating brand renovation and innovation, implementing strategic revenue growth management and pricing, driving productivity and working capital efficiency, and strengthening digital capabilities [8][34] - The company plans to eliminate approximately 30% of its SKUs in North America by fiscal 2027 to improve supply chain efficiency [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the fiscal year, expecting stronger top and bottom-line performance compared to the first half [31] - The company is stepping up marketing investments and anticipates benefits from SG&A work and pricing actions to build throughout the year [32] - Management acknowledged challenges in the consumer environment but emphasized the value proposition of their health and wellness products [41][42] Other Important Information - Free cash flow for the quarter was an outflow of $14 million, an improvement from an outflow of $17 million in the prior year [29] - The company closed the quarter with cash on hand of $48 million and net debt of $668 million, an increase driven by seasonal funding of working capital [30] Q&A Session Summary Question: Anticipation of organic sales in Q2 - Management expects some moderation in the year-over-year rate of decline in organic sales in Q2, with a focus on improvement in the second half [37] Question: Elasticity of pricing actions in North America - Early data indicates that pricing on tea is in line with expectations, while baby category pricing has been slower to roll out [39] Question: Consumer behavior in the current environment - Management noted a shift towards value-seeking behavior among consumers, with a focus on delivering value through better-for-you products [41][42]