Financial Data and Key Metrics Changes - Realty Income invested $1.2 billion in the second quarter at a 7.2% weighted average initial cash yield, with a spread of 181 basis points over the short-term weighted average cost of capital [6] - The company sourced $43 billion in volumes, matching the total sourced volume for all of 2024 and marking the highest quarterly volume in its history [6] - Year-to-date, the company has sourced approximately $66 billion of investment opportunities, on track to surpass the previous high watermark of $95 billion reached in 2022 [7] Business Line Data and Key Metrics Changes - In Europe, Realty Income invested $889 million, accounting for 76% of the investment volume at a 7.3% weighted average initial cash yield [8] - In the U.S., the company invested $282 million at a 7% weighted average initial cash yield, reflecting a selective approach rather than a lack of opportunities [9] - The portfolio occupancy rate was 98.6%, slightly above the historical median of 98.2% from 2010 to 2024 [11] Market Data and Key Metrics Changes - 57% of the year-to-date volume has been sourced domestically, with the remainder in Europe [7] - The company expanded into its eighth European country, Poland, with transactions involving a leading manufacturer and a grocery store operator [9][24] Company Strategy and Development Direction - Realty Income aims to capitalize on two global megatrends: the growing demand for durable income-oriented investment solutions and the rising interest from corporations in asset-light strategies [5] - The company is focusing on expanding its private capital and credit investments while maintaining its core real estate net lease vertical [5] - The company is increasing its 2025 investment volume guidance to approximately $5 billion, reflecting confidence in its acquisition pipeline [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the structural advantages of the business model, including scale, diversification, and data analytics, to create value across various economic conditions [20] - The company anticipates approximately 75 basis points of potential rent loss in 2025, slightly higher than historical experience, primarily due to certain tenants acquired through public M&A transactions [12] - The credit watch list stands at 4.6% of annualized base rent, indicating a proactive approach to managing tenant health and potential risks [13] Other Important Information - Realty Income raised $632 million of equity through its ATM at a weighted average stock price of $56.39 per share [14] - The company has $5.4 billion of liquidity at quarter-end, including $800 million in cash and $4 billion available under its credit facility [16] Q&A Session Summary Question: Expansion into Poland - Management highlighted Poland's strong GDP growth and favorable property laws as key factors for expansion, with initial transactions involving distribution centers and industrial assets [24] Question: Acquisition Guidance Changes - The low end of acquisition guidance was raised due to conservatism amid uncertainty in U.S. and European policies, while the high end remained unchanged [26] Question: Selectivity in Acquisitions - Management confirmed a selective approach, stating that $3.7 billion of transactions were declined due to insufficient initial yield, emphasizing the importance of accretive transactions [30] Question: Investment Activity in Europe - The majority of investments in Europe were in the industrial sector, with a focus on retail parks in Ireland, which are seen as a significant growth opportunity [32][34] Question: Tenant Health and Tariffs - The company has minimal exposure to industries most affected by tariffs, with a diversified client base providing confidence in managing potential risks [40] Question: Competitive Landscape and Supply-Demand Dynamics - Management acknowledged increased competition from private capital sources but emphasized the company's established underwriting maturity as a competitive advantage [52][55] Question: Lease Expirations and Bankruptcy Impact - Lease expirations increased slightly, but management noted that the majority were natural expirations rather than driven by bankruptcies, with a strong renewal rate [100][101]

Financial Data and Key Metrics Changes - The company reported a Q2 net loss of $325 million, which includes a $168 million operating loss and a $157 million non-operating loss, both impacted by non-cash items [30] - Total operating expenses for the quarter were $168 million, up about $5 million from the prior quarter, driven by higher staffing and program spending [31] - Adjusted EBITDA was a loss of $132 million in Q2, about $4 million higher than the prior quarter, reflecting increased spending [32] Business Line Data and Key Metrics Changes - The company is 70% complete on the Joby side for stage four of certification, with a 10-point increase from the previous quarter [7] - The first of five aircraft for TIA flight testing is headed to final assembly, with plans to start flying TIA aircraft with Joby pilots this year [7][12] - The acquisition of Blade's passenger business is expected to accelerate readiness for commercial eVTOL operations globally [14][15] Market Data and Key Metrics Changes - The company completed 76 separate flights in July alone, with significant flight testing in Dubai, including operations in challenging conditions [6][12] - The company is exploring the sale of up to 200 aircraft in Saudi Arabia, valued at approximately $1 billion [18] Company Strategy and Development Direction - The company aims to leverage the acquisition of Blade to enhance its operational capabilities and customer experience, particularly in New York [16][46] - The company is pursuing three paths to commercialization: owned and operated service, direct sales, and regional partnerships [17][35] - The company is also developing hybrid aircraft for U.S. defense applications, indicating a dual-use strategy [19][22] Management's Comments on Operating Environment and Future Outlook - Management highlighted the global regulatory momentum for eVTOL, with significant collaboration among countries to streamline certification processes [10][11] - The company is focused on scaling production capacity to meet demand, with plans to double production capacity at its Marina facility [23][24] - Management expressed confidence in the company's ability to execute on its plans despite the challenges ahead [34] Other Important Information - The company ended Q2 with cash and short-term investments totaling $991 million [29] - The company remains on track with its full-year 2025 guidance of $500 million to $540 million in cash use [30] Q&A Session Summary Question: Plans for providing eVTOLs to local charter operators - The company prefers retaining long-term cash flow from passenger service but sees value in Blade's asset-light model for flexibility [38][39] Question: Specifications of TIA aircraft - The TIA aircraft is nearly identical to previous models, with FAA inspections ongoing during the build process [41][42] Question: Initial commercial service in the U.S. post-Blade acquisition - The acquisition enhances operations in New York, allowing for faster ramp-up due to existing infrastructure and customer base [46] Question: Certification timeline and remaining tasks - The company is on schedule to begin TIA flights with Joby pilots by late this year and with FAA pilots early next year [84][85] Question: Contribution from Blade operations in financials - The Blade acquisition is in the process of closing, with contributions expected in future quarters [86]

Financial Data and Key Metrics Changes - Transaction value for Q2 was $481 million, up 49% year over year, driven by a 71% increase in the P and C vertical, while the Health vertical saw a 32% decline [9][11] - Adjusted EBITDA for the quarter was $24.5 million, increasing 31% year over year, representing 62% of contribution, up from 56% in the prior year [10][12] - The company expects Q3 transaction value to be between $545 million and $570 million, representing a year-over-year increase of 23% at the midpoint [12][13] Business Line Data and Key Metrics Changes - The P and C vertical experienced significant growth, with transaction value increasing by 71% year over year, primarily from existing carriers [9][30] - The Health vertical's transaction value declined by 32% year over year, with expectations of continued declines in the near term [9][11] - The company anticipates a Q3 transaction value of approximately $18 million for the under-65 business, reflecting a 54% year-over-year decline [11] Market Data and Key Metrics Changes - The company noted that automotive tariffs are becoming more manageable, and the slowing rate increases are prompting carriers to focus on acquiring new customers [7][23] - The competitive landscape in the auto insurance market remains strong, with healthy advertising spend expected to continue [7][22] Company Strategy and Development Direction - The company aims to capture multi-year growth opportunities, particularly in the P and C insurance vertical, while also focusing on compliance measures following the FTC settlement [5][8] - There is a strategic shift towards optimizing for market share and transaction value, with plans to focus more on gross profit as market conditions evolve [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory for the rest of the year, particularly in the P and C vertical, despite challenges in the Health vertical [8][11] - The company anticipates increased consumer shopping behavior in the Medicare Advantage market, although carrier budgets may be lighter than in previous years [49][50] Other Important Information - The company reached a settlement with the FTC involving $45 million in payments, which will be funded from cash on hand [6][14] - The company ended the quarter with $85 million in cash and a net debt to adjusted EBITDA ratio of 0.6x, indicating strong financial flexibility [13][14] Q&A Session Summary Question: How will the FTC settlement enhance competitive positioning in the under-65 vertical? - Management indicated that the settlement will create a new baseline for the under-65 business, allowing for better navigation of consumer choices and potential growth opportunities [18][19] Question: What is the outlook for carrier budgets in the second half of the year? - Management expressed optimism about continued strong carrier budgets, citing robust underlying profitability in the personal auto space [21][22] Question: Can you provide more details on the mix of existing carrier spend versus new carrier additions? - The majority of the increase in spend was from existing carriers, with new carriers typically starting small [30] Question: What is the strategy to balance volume growth and profitability? - The current focus is on optimizing for market share and transaction value, with plans to shift towards gross profit optimization as market conditions change [32] Question: What are the expectations for the upcoming AEP and its impact on shopping behavior? - Increased shopping behavior is anticipated, but carrier budgets may be lighter than previous years due to market churn and uncertainty [50][51]

Financial Data and Key Metrics Changes - Total revenue for the quarter increased by 6% year-over-year to $236 million, exceeding internal expectations [6][18] - Adjusted EPS rose by 10% compared to the prior year, driven by operating performance and share repurchases [6][20] - Consolidated adjusted EBITDA for the quarter was $105 million, an increase of approximately 3% year-over-year [19] Business Segment Data and Key Metrics Changes - Commercial Services revenue grew by 5% year-over-year, with RAC tolling revenue increasing by 4% [21][22] - Government Solutions service revenue increased by 7% year-over-year, with total revenue up by 10% [10][23] - T2 Systems revenue declined by about 4% for the quarter, driven by reduced product sales and professional services revenue [14][24] Market Data and Key Metrics Changes - TSA volume declined by about 1% year-over-year, with year-to-date TSA volume remaining flat compared to last year [9] - The macroeconomic environment is stabilizing, with consumer confidence improving, although travel demand is lower than previous forecasts [9][14] Company Strategy and Development Direction - The company is focused on expanding its Government Solutions segment, particularly in automated photo enforcement, which has seen legislative support across the U.S. [11][12] - A $100 million stock repurchase program has been authorized, reflecting the company's commitment to returning value to shareholders [15] - The company is maintaining its full-year 2025 financial guidance, with expectations for growth in Government Solutions and stabilization in the parking business [14][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth prospects in the Commercial Services segment despite anticipated challenges in the third quarter [7][14] - The company is closely monitoring the airline industry as a key indicator for travel demand, which impacts the commercial services business [9][26] - Management highlighted the importance of finalizing the renewal contract with New York City, which is expected to provide clarity on future revenue [11][53] Other Important Information - The company has seen a significant increase in total addressable market (TAM) for automated photo enforcement, with recent legislation adding approximately $225 million [12] - The ongoing ERP implementation is on schedule and within budget, with the most complex portions largely complete [29] Q&A Session Summary Question: Clarification on travel trends and assumptions for the second half - Management indicated that TSA throughput is expected to remain around 99% to 100% for the second half of the year, aligning with guidance [36][37] Question: Insights on Fleet Management challenges - Management acknowledged a small decline in FMC revenue due to macroeconomic factors and customer churn, expecting further declines in Q3 before stabilization [39] Question: Government Solutions guidance improvement - Management noted broad-based strength in Government Solutions, with higher product sales and accelerated demand for photo enforcement driving the guidance increase [42][43] Question: Margins in Government Solutions - Management explained that margin pressures were due to a mix of increased international sales and ERP implementation costs, with expectations for stabilization as growth continues [48][50] Question: Update on New York City contract renewal - Management confirmed ongoing negotiations for the New York City contract, emphasizing the importance of finalizing the agreement for future revenue clarity [53] Question: CapEx and revenue relationship - Management clarified that increased CapEx is in preparation for future demand, with expectations for significant growth in the Government Solutions business [88] Question: D&A guidance for the back half of the year - Management indicated that the decrease in D&A is due to the amortization of previous deals running off, not a reduction in overall expenses [90]

Financial Data and Key Metrics Changes - In Q2 2025, total billings were $104 million, a 5.7% decrease year over year [25] - Revenue decreased by 9.2% to $63.2 million, driven by a decrease in billings [26] - Adjusted EBITDA was positive $2.7 million, an increase of $5 million year over year [29] - Operating cash flow was positive $1.2 million, while free cash flow was negative $3.4 million, which was $3 million less than the prior year [29] Business Line Data and Key Metrics Changes - U.S. revenue, excluding Bridge, decreased by 13% due to lower billings and pricing pressure [27] - U.K. revenue grew by 29%, driven by higher billings and increased supply [27] - Bridge revenue decreased by 8% due to the loss of a major account in previous quarters [27] Market Data and Key Metrics Changes - The U.K. business showed strong growth with the highest billings quarter in history, driven by categories like everyday spend and subscription services [13] - Advertiser churn was mostly concentrated in mid to small-sized brands, which have been more susceptible to budget reductions [14] Company Strategy and Development Direction - The company is focused on increasing and diversifying its supply by growing partnerships with financial institutions and merchants from other verticals [5] - A shift to engagement-based pricing is being implemented, which is expected to help advertisers see the platform as a performance media ad format [10] - The company is committed to ensuring sustainable business and a path to profitability despite challenges [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant limitations due to content restrictions imposed by the largest financial institution partner, which could impact user engagement and advertiser effectiveness [9] - The company is optimistic about the potential for growth in the U.K. market and is focused on reinforcing relationships with top advertisers [15][36] - Management emphasized the importance of diversifying supply and demand to mitigate risks associated with the largest FI partner's restrictions [33] Other Important Information - The company ended Q2 with $46.7 million in cash and cash equivalents and drew $50 million on its line of credit [29] - Monthly qualified users (MQUs) increased by 19% to 224.5 million, driven by the ramp-up of new FI partners [30] Q&A Session Summary Question: Can you elaborate on the Q3 outlook regarding the billings decrease and content restrictions? - Management indicated that the content restrictions are broader than anticipated and are impacting billings significantly [42][43] Question: What is the status of the line of credit drawn? - The $50 million drawn from the line of credit is intended to repay notes due in September, maintaining a comfortable cash balance [44][45] Question: How is the company leveraging AI throughout the platform? - The company is exploring AI applications in development, analytics, and customer insights, although some initiatives may slow down due to recent changes [56][57] Question: What traction has been seen with local offers? - The company has invested in geo-targeted offers, leading to increased traction in everyday spend and QSRs [60][61] Question: Can you discuss the impact of MQUs and the nature of the restrictions? - The broader set of bank partners represents over 50% of MQUs, and the restrictions are limiting brands' ability to utilize the platform effectively [68][70]

Financial Data and Key Metrics Changes - The company reported net sales of $500 million in Q3 2025, down 12.2% compared to the prior year, primarily due to weather-related headwinds and reduced traffic [22][5][24] - Gross profit was $197.9 million, compared to $228.8 million in the prior year, with a gross margin decline of 62 basis points year over year [22] - SG&A expenses were $129.6 million, slightly down from $131.1 million in the previous year, primarily due to variable expenses associated with lower sales [22] - Inventory at the end of the quarter was $273.2 million, down approximately $29 million or 9.6% year over year [23][24] Business Line Data and Key Metrics Changes - Chemical sales, including both core and specialty chemicals, were down nearly 15% due to cooler temperatures affecting demand [8][22] - The Pro segment saw an increase in pro partner contracts by 12% compared to the prior year, indicating growth in this business line despite overall sales challenges [7][22] Market Data and Key Metrics Changes - The impact of cooler temperatures was most evident in non-Sunbelt markets, particularly in the North region, where sales were down approximately 30% during the peak season [10][9] - The company noted that aggressive pricing actions by competitors were observed late in the quarter, affecting residential sales and leading to a loss of market share [10][22] Company Strategy and Development Direction - The company is focused on four strategic pillars: customer centricity, convenience, asset utilization, and cost optimization, to drive transformation and long-term profitable growth [11][12] - Initiatives include launching same-day delivery services and enhancing the loyalty program to improve customer engagement and retention [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging operating environment due to macro pressures and unusual weather patterns but expressed confidence in the company's transformation efforts [4][26] - The company expects to reduce inventory by at least $20 million year over year, which is anticipated to improve cash flow and support debt reduction [24][20] Other Important Information - The company ended the quarter with $42.7 million in cash and has no borrowings under its revolving credit facility, indicating a strong liquidity position [24][22] - The company plans to share more details on its strategic review and cost optimization efforts in the upcoming November earnings call [20][72] Q&A Session Summary Question: What happened when promotions picked up in Q3? - Management noted that aggressive pricing in the marketplace impacted their pricing strategy, and they are working on a strategic pricing approach moving forward [30][31] Question: What are the competitive pressures on the equipment side? - Equipment performance was down in the quarter, particularly in automatic pool cleaners, but not as severely as chemicals due to weather impacts [36][38] Question: What is the outlook for gross margin recovery? - Management indicated that fixed cost deleverage has impacted gross margin, but they are focused on cost optimization and asset utilization to improve margins over time [39][41] Question: Are there plans for store closures? - Management confirmed that there are no plans for store closures this year, focusing instead on optimizing costs and improving performance [66][72] Question: How is the company addressing market share loss? - Management emphasized efforts in the Pro segment and loyalty programs to retain customers, while also addressing challenges in the residential side [54][56] Question: What are the expectations for Q4 sales? - The company expects Q4 sales to decline at a similar rate to Q3 but anticipates improvements in traffic trends [57][86]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported gross earned premiums of $371 million and net income of $22 million, marking a $30 million improvement year over year [6][13] - Operating income reached $27 million and adjusted EBITDA was $38 million, reflecting year-over-year improvements of $24 million and $26 million respectively [13] - The gross accident period loss ratio was 60%, and the net combined ratio improved by eight points year over year to 95% [14] Business Line Data and Key Metrics Changes - The partnership channel saw quarterly new writings nearly triple year over year, significantly contributing to the overall growth [8] - Policies in force and gross written premium both increased by 12% year over year [31] Market Data and Key Metrics Changes - The company is now available in more than 20 states and has made significant progress in expanding its geographic footprint [8] - The competitive landscape in the direct channel has intensified, prompting the company to reduce marketing spend when necessary [9] Company Strategy and Development Direction - The company aims to become the largest and most profitable personal lines insurance carrier in the U.S. and continues to invest in technology and growth [11][15] - The new pricing model enhances risk selection and increases customer lifetime values by an average of 20% [7] - The company is focused on long-term value creation rather than short-term profitability, with plans to invest in strategic areas and R&D [12][15] Management's Comments on Operating Environment and Future Outlook - Management noted that while competition has increased, they are not chasing a soft market and are focusing on growing the partnership channel [22] - The company has not yet seen a meaningful impact from tariffs and believes it can absorb potential impacts without raising rates [11][45] - Loss ratios are expected to increase slightly in the second half of the year due to typical seasonal pressures [45] Other Important Information - The company has $314 million in unencumbered capital, providing financial flexibility for future investments [15] - A cumulative warrant expense of approximately $16 million to $18 million is expected in Q3, which will result in a net loss for that quarter but positive adjusted EBITDA [16] Q&A Session Summary Question: Expectations for policies in force growth - Management noted modest growth in policies in force in Q3 and emphasized the significant long-term growth opportunity in the partnership channel [22][23] Question: Partnership channel's ability to offset direct channel pullback - Management confirmed that the partnership channel is expected to continue growing and can offset a pullback in the direct channel [26] Question: Budget for growth spending - The company plans to be opportunistic with direct marketing spend and expects overall spending to be slightly elevated compared to Q2 [27] Question: Pricing adequacy and segmentation - Management stated that pricing is adequate and they are not taking significant rate increases, with improvements in customer lifetime values due to new algorithms [32][34] Question: Impact of tariffs and loss ratios - Management indicated that they are monitoring the environment for tariff impacts but have not seen material signs yet [42][45] Question: Differences in loss ratios between channels - Management explained that there are no significant differences in unit economics across channels, and both are priced appropriately [46] Question: Future state approvals and filings - Management clarified that they received product filing approval in Washington and have other filings pending in various states [56]

Financial Data and Key Metrics Changes - The company achieved GAAP profitability for the third consecutive quarter, with net income reaching $6.9 million, a year-over-year improvement of $38 million [7][18] - The return on equity (ROE) improved to 7%, up 41 percentage points year-over-year [7] - The annualized net charge-off rate was 11.9%, which is 41 basis points better than the previous year [8][24] - Operating expenses were $94 million, down 13% year-over-year, with a revised full-year expectation of approximately $380 million [9][21] Business Line Data and Key Metrics Changes - Originations for Q2 totaled $481 million, an 11% increase year-over-year [12][19] - The secured personal loans portfolio grew by 58% year-over-year, accounting for 39% of personal loan originations growth [13] - The average loan size decreased by 6%, making it easier for customers to repay loans [51] Market Data and Key Metrics Changes - The company completed a $439 million asset-backed securities (ABS) transaction at a weighted average yield of 5.67%, marking a 128 basis point improvement from the previous transaction [9][26] - Total cash as of June 30 was $228 million, with $97 million unrestricted [25] Company Strategy and Development Direction - The company is focused on improving credit outcomes, strengthening business economics, and identifying high-quality originations [10] - The strategy includes a conservative credit posture and a focus on smaller loans to drive repeat borrowing [55][62] - The company aims to achieve a long-term target of GAAP ROEs of 20% to 28% annually [29] Management's Comments on Operating Environment and Future Outlook - Management noted resilience among customers despite macroeconomic uncertainties, with a focus on maintaining a conservative credit approach [14][65] - The company expects a slower decline in the net charge-off rate for the second half of the year due to higher member repayment rates [15] - Full-year adjusted EPS guidance was increased by 8%, now targeting $1.2 to $1.4 per share, reflecting strong growth compared to last year [16][28] Other Important Information - The company has reduced its debt-to-equity ratio from 7.6 times to 7.3 times quarter-over-quarter [24] - The company has raised over $3 billion in diversified financings since June 2023 [26] Q&A Session Summary Question: Discussion on portfolio performance and repayment rates - Management clarified that elevated repayment rates are not indicative of adverse selection, but rather a result of customers being current on their loans [36][37] Question: Adjusted net income versus adjusted EBITDA guidance - Management explained that strong demand for loans has positively impacted adjusted net income, while adjusted EBITDA guidance remains unchanged due to other factors [38] Question: Competitive environment and repayment behavior - Management indicated that the competitive landscape remains stable, with no significant changes in origination fees, and attributed repayment behavior to smaller loan sizes [51][52] Question: Future expectations for annualized net charge-off rates - Management noted that macroeconomic factors could influence charge-off rates, but emphasized a focus on controlling internal factors like loan sizes [92][93] Question: Operating expenses outlook for 2026 - Management stated that while it is too early to provide specific guidance for 2026, efforts will continue to reduce operating expenses and leverage technology for efficiency [94][96]

Financial Data and Key Metrics Changes - The company reported revenue of $106 million for Q2 2025, a decrease of 11% from $120 million in the same period last year [20] - Adjusted EBITDA rose 4% to $15 million, representing 14% of revenue, primarily due to business transformation efforts and cost management [6] - Non-GAAP earnings per share was $0.11, compared to $0.12 in Q2 2024 [23] - Operating cash flow was $10 million, a significant improvement from a cash outflow of $2 million in the previous year [24] Business Line Data and Key Metrics Changes - Pay TV revenue decreased by 18% to $50 million, largely due to minimum guarantee revenue recognized in the prior year [20] - IPTV solutions saw a revenue growth of 24%, reaching an installed base of over 3 million subscriber households [16] - Consumer electronics revenue increased by 23% to $19 million when excluding divestitures [21] - Connected car revenue decreased by $6 million due to fewer minimum guarantee agreements compared to last year [22] Market Data and Key Metrics Changes - IPTV solutions in North America and Latin America grew over 30% year over year [16] - The company expanded its DTS AutoStage solution, signing two new OEM programs and launching in several new car models [13] - The advertising market is experiencing uncertainty, impacting customer decisions and revenue forecasts [5][30] Company Strategy and Development Direction - The company is focused on strategic growth initiatives, including the TiVo ONE ad platform, connected car solutions, and IPTV services [4][9] - The goal for the TiVo ONE ad platform is to reach 5 million monthly active users by the end of 2025, with current users at 3.7 million [12] - The company aims to build partnerships and enhance its advertising revenue through increased user engagement and partnerships with major retailers [10][13] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging operating environment due to macroeconomic uncertainty, tariffs, and a weakening consumer environment [5] - The company expects slower IPTV subscriber growth and softer automotive production volumes in the second half of 2025 [24] - Despite revenue outlook reductions, management remains optimistic about business transformation efforts and long-term profitability [24][43] Other Important Information - The company has signed nine partners for the TiVo OS, nearing its goal of ten partners for 2025 [12] - Significant multiyear renewals were signed with key customers, including Liberty Latin America and Cable One [16] - The company is exploring stock buyback strategies as part of its capital allocation [41] Q&A Session Summary Question: Clarification on volatility between Q2 and Q3 - Management noted uncertainty in the near-term outlook led to customers being less likely to enter long-term deals, resulting in delays [29] Question: Dynamics of the ad platform and growth expectations - Management expects monthly active users to grow to 5 million, which will enhance advertising opportunities despite unit volume declines [37] Question: Commentary on stock buyback strategy - The company has authorization for stock buybacks and is discussing this with the board, particularly given current stock prices [41]

Financial Data and Key Metrics Changes - In Q2 2025, revenue reached $411.9 million, a 34% year-over-year increase, and adjusted EBITDA was $64 million, representing a 16% margin [30] - The company achieved GAAP profitability with a net income of $6.5 million, a significant improvement from a net loss of $12.1 million in 2024 [44] - Send volume grew by 40% to $18.5 billion, with SAN volume per active customer increasing by 12% year-over-year [32][30] Business Line Data and Key Metrics Changes - Remitly Business expanded its total addressable market (TAM) from approximately $2 trillion to over $22 trillion, targeting freelancers and small businesses [10] - The average transaction size for Remitly Business customers is nearly double that of core consumers, with retention signals tracking ahead of expectations [12] - The company onboarded thousands of businesses in Q2, indicating strong early momentum for Remitly Business [12] Market Data and Key Metrics Changes - Revenue from regions outside of India, the Philippines, and Mexico grew by 41% year-over-year, with the Mexican received business revenue growth outpacing overall revenue growth [34] - The U.S. revenue grew by 35%, driven by continued share gains, while the rest of the world grew by 40% year-over-year [34] - High amount senders saw a record year-over-year send volume growth of over 45%, with the volume mix from these customers increasing by 300 basis points [35] Company Strategy and Development Direction - The company aims to transform lives with trusted financial services that transcend borders, focusing on product innovation and expanding its customer base [7][26] - Key initiatives include the launch of Remitly One, a membership program, and the introduction of stablecoin capabilities to enhance cross-border financial services [13][20] - The company is leveraging AI to improve customer experience and drive revenue growth, with a focus on reducing friction in transactions [23][24] Management's Comments on Operating Environment and Future Outlook - Management views the upcoming remittance tax legislation as a tailwind for the business, expecting it to accelerate the shift from offline to online transactions [31] - The company is confident in its ability to sustain revenue growth and profitability, with a full-year revenue outlook of $1.61 billion to $1.62 billion, reflecting a growth rate of 27% to 28% [46] - Management emphasized the importance of innovation and customer engagement in driving long-term growth and shareholder value [28][52] Other Important Information - The company closed on a $550 million secured revolving credit facility to support rising customer transaction volumes [51] - A share repurchase program of $200 million was authorized to manage dilution and build long-term value for shareholders [51] Q&A Session Summary Question: Timeline and geographic phasing for new products - Management expressed excitement about expanding to new customer segments and does not expect new initiatives to impact marketing line items [55][57] Question: Customer profile for Remitly Wallet - The company aims to serve existing customers and capture demand from new customers moving to different countries, addressing their financial service needs [62][64] Question: Marketplace demand for stablecoins - Management noted a modest current demand for stablecoins but sees potential for future adoption, particularly in emerging markets [67][71] Question: Unit economics of stablecoin transactions - The revenue model for stablecoin transactions is expected to remain similar, leveraging the company's existing infrastructure and regulatory expertise [76][78] Question: Competition and pricing dynamics in remittances - Management highlighted the optimization of unit economics for small businesses and the potential to move upmarket over time [80][83]