Financial Data and Key Metrics Changes - Revenue for the first quarter of fiscal 2026 rose 2% year-over-year to $2.14 billion, while total segment EBITDA increased by 5% to $340 million [4][19] - Net income from continuing operations was $150 million, slightly up from $149 million last year, and adjusted EPS rose from $0.20 to $0.22 [4][20] - Total segment EBITDA was negatively impacted by a $13 million write-off related to a book distributor closure [19] Business Line Data and Key Metrics Changes - Dow Jones segment revenue increased by 6% to $586 million, with digital revenues accounting for 84% of total segment revenue [21][22] - Digital real estate services reported revenues of $479 million, up 5% year-over-year, with segment EBITDA rising 13% to $158 million [25] - Book publishing segment revenue declined by 2% to $534 million, with EBITDA down 28% to $58 million due to a $13 million write-off [29] Market Data and Key Metrics Changes - Digital revenues have nearly doubled since fiscal 2018, now comprising 62% of total revenues [18] - Digital advertising accounted for 68% of total advertising revenues, a new record for the company [8][24] - The U.S. housing market is showing signs of recovery, with Realtor.com experiencing a 9% revenue boost year-on-year [9][26] Company Strategy and Development Direction - The company is focusing on maximizing shareholder value through accelerated share buybacks, with a current repurchase rate of approximately $2.5 million per day [5][17] - Strategic diversification across high-margin content licensing and digital revenues is emphasized, with a focus on risk and compliance services [18][22] - The company is pursuing partnerships in the AI space and addressing piracy issues through legal actions [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in the housing market and the potential for continued revenue growth in digital real estate and Dow Jones [9][30] - The book publishing segment is expected to benefit from improved trends in the coming months, with recent releases performing well [12][31] - Management remains confident in the company's growth potential and plans to continue share repurchases at an elevated rate [17][32] Other Important Information - The company has made strategic acquisitions, such as Eco-Movement, to enhance its data offerings in the professional information business [8][23] - The digital-only subscriptions for the Wall Street Journal surged by 11%, contributing to the overall growth in digital circulation revenues [8][24] Q&A Session Summary Question: Concerns about Realtor's revenue growth sustainability - Management highlighted the ongoing focus on growth areas such as seller, new homes, and rentals, indicating that the strategy is yielding positive results despite market challenges [34] Question: Share repurchase strategy and Wall Street Journal pricing - Management confirmed the accelerated buyback rate and indicated that there is potential for further increases, while also discussing the elasticity of subscription pricing for the Wall Street Journal [38][39] Question: Impact of Factiva dispute settlement on revenues - Management noted that while the settlement had a modest impact, overall performance in Dow Jones was strong, with significant growth in risk and compliance revenues [42][43] Question: Future simplification of the business structure - Management expressed openness to structural changes and emphasized the importance of maximizing shareholder returns through strategic decisions [49] Question: Growth potential in risk and compliance services - Management is optimistic about the growth trajectory in risk and compliance, citing regulatory pressures as a source of new business [52][53] Question: Trajectory of news media business - Management reported a slight revenue increase and significant improvements in EBITDA, driven by cost efficiencies and strong advertising performance at the New York Post [58][59]

Financial Data and Key Metrics Changes - Total revenue grew to over $178 million, up 7.5% year-over-year [28] - Subscription revenue increased by 7%, while services revenue grew by 13% due to accelerated project delivery [28] - Annual recurring revenue (ARR) reached $685 million, up 7.3% [28] - Non-GAAP operating margin was 21.4%, reflecting improved productivity [31] - Free cash flow was $57 million, driven by strong collections execution [31] Business Line Data and Key Metrics Changes - New customer bookings increased by 45%, with the average new deal size more than doubling by 111% [6][7] - Strategic products accounted for 36% of sales, up from 32% last year [30] - Solex channel performance remained steady, accounting for 26% of total revenue [30] Market Data and Key Metrics Changes - Customer count reached 4,424, reflecting a strategic resegmentation away from lower-end customers [29] - Revenue renewal rate was 93%, up from the prior year, driven by strong enterprise performance [29] - Net retention rate for the quarter was 103%, despite a headwind from foreign exchange [29] Company Strategy and Development Direction - The company has re-architected its leadership, go-to-market engine, and technology structures to drive revenue growth and margin expansion [5][6] - Focus on larger, more strategic platform deals, with a new platform-based pricing model accounting for nearly three-quarters of new customer bookings [9] - Continued investment in AI and automation to enhance product offerings and operational efficiency [19][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering sustained, profitable growth, with expectations for accelerating revenue growth and margin expansion in 2026 [26][34] - The macro environment is currently stable, with potential tailwinds from corporate job layoffs creating opportunities for efficiency discussions with customers [87] - The strategic transition away from lower-end customers is nearing completion, expected to be largely finished in the first half of next year [11][29] Other Important Information - The company returned approximately $113 million to shareholders through share repurchases, underscoring confidence in long-term value [32] - The planned churn from the strategic de-emphasis of lower-end customers is nearing its conclusion [11] Q&A Session Summary Question: Impact of large customers pausing user adds - Management acknowledged that some deals slipped into Q4, costing a couple of million dollars, but noted an increase in interest and pipeline for larger deals [41][43] Question: Automation and customer attrition - Management explained that success-based attrition is occurring as customers achieve higher efficiency with fewer licenses, which is a positive trade-off for long-term growth [59][60] Question: Factors driving expected bookings growth - Management highlighted the shift in conversations to higher levels within organizations, deeper partnerships, and product-led growth as key drivers for the expected 20% bookings growth next year [71][74] Question: Competitive takeaways - Management confirmed an uptick in competitive wins, attributing it to the company's proven track record, improved implementation quality, and industry-specific expertise [75][76] Question: SAP relationship and pipeline - Management reported a solid relationship with SAP, focusing on joint customer success and reducing attrition through dedicated resources [82][84] Question: Macro environment considerations for 2026 - Management characterized the current macro environment as stable, with potential tailwinds from efficiency needs due to corporate layoffs [86][87]

Financial Data and Key Metrics Changes - The company reported revenue of $169 million for Q2 2026, representing a 23% year-on-year growth and a 7% beat from the high end of guidance [6][11] - Adjusted EBITDA margin was 60%, amounting to $101 million, which was 15% above the high end of guidance [6][12] - Free cash flow increased by 37% year-on-year, reaching $91.6 million [13] Business Line Data and Key Metrics Changes - The company achieved an all-time record number of quarterly active subscribers for its Newsfeed, with double-digit growth in articles read [7] - Over 650,000 unique prescribers used the workflow tools in Q2, marking another all-time high [7] - AI tools saw the fastest growth, with quarterly active prescribers up more than 50% from the prior quarter [7] Market Data and Key Metrics Changes - The company finished the quarter with a net revenue retention rate of 118% on a trailing 12-month basis [11] - The number of customers contributing at least $500,000 each in subscription-based revenue increased by approximately 16% year-on-year [11] Company Strategy and Development Direction - The company is focusing on AI-optimized integrated programs, which represented over 40% of bookings in Q2, compared to less than 5% in the same quarter last year [15][39] - The integration of Pathway's medical data set and AI models into DoxGPT is expected to enhance the company's offerings in medical AI [8][60] - The company aims to maintain a 55%+ Adjusted EBITDA margin while investing in AI solutions [17] Management's Comments on Operating Environment and Future Outlook - Management expressed some uncertainty regarding the 2026 budget discussions, indicating a cautious approach to revenue expectations [20][21] - Despite potential headwinds, management remains optimistic about client engagement and the performance of integrated programs [21] - The company expects revenue for Q3 2026 to be in the range of $180 million to $181 million, representing a 7% growth at the midpoint [14] Other Important Information - The company repurchased $21.9 million worth of shares during Q2, with $280 million remaining in the existing repurchase program [13] - The company is excited about the long-term growth opportunities presented by its AI suite [17] Q&A Session Summary Question: Uncertainty around budget discussions - Management indicated that the uncertainty primarily relates to calendar 2026 budgets, which are expected to be finalized soon [20] Question: Future AI opportunities - Management expressed excitement about the potential for AI to add significant value for physicians, with plans to continue expanding AI capabilities [22][23] Question: Budget allocation changes - Management noted that clients are considering potential changes in budget allocations, particularly in light of recent policy changes [28][30] Question: Impact of direct-to-consumer advertising - Management acknowledged that while there are discussions around D2C advertising, it is still early to assess the impact on budgets [29][30] Question: Integrated programs and visibility - Management clarified that integrated offerings represented 40% of upsell sales in Q2, which provides better visibility for future revenue [48][49] Question: Market share and growth - Management stated that the company has been growing at about two times the market growth rate, with a strong competitive position [88][89]

Financial Data and Key Metrics Changes - Net sales for the September quarter were $1.14 billion, reflecting a 6% sequential increase and exceeding guidance by $10.4 million [15][24] - Non-GAAP gross margin was reported at 56.7%, impacted by inventory reserve charges of $71.8 million and underutilization charges of $51 million [15][24] - Non-GAAP operating margin increased to 24.3% of sales, with operating expenses at 32.4% of sales [15] - Non-GAAP net income was $199.1 million, translating to earnings per diluted share of $0.35, which was $0.02 above guidance [15] Business Line Data and Key Metrics Changes - The microcontroller (MCU) business grew 9.7% sequentially, while the analog business saw a 1.7% increase [4] - Sales from data center products, particularly Gen 4 and Gen 5, showed strong growth, although from previously low levels [4][21] Market Data and Key Metrics Changes - Sales growth was observed in the Americas and Asia, while Europe remained flat, which is considered acceptable for a summer quarter [4] - The data center market exhibited the strongest sales performance, with significant increases in bookings and shipments of PCIe switches and related products [21] Company Strategy and Development Direction - The company is focusing on advanced technology, highlighted by the introduction of the industry's first 3-nanometer-based PCIe Gen 6 switch, aimed at enhancing AI infrastructure [10][12] - A strategic shift towards high-performance data center products is underway, with plans to expand offerings in the AI and FPGA markets [76] Management's Comments on Operating Environment and Future Outlook - Management noted a softer overall business environment compared to previous quarters, impacting December quarter guidance, which is expected to be down 1% sequentially [28][29] - Despite the current challenges, there is optimism for strong performance in the March, June, and September quarters of 2026, driven by improved backlog and bookings [50][52] Other Important Information - Inventory levels decreased by $73.8 million sequentially, with inventory days down to 199 days [16][17] - The company is undergoing a restructuring plan, including the sale of its Fab 2 facility, which is expected to be completed by December 2025 [7][8] Q&A Session Summary Question: How does the current environment compare to 90 days ago? - Management indicated a slightly softer tone in the business environment, affecting December quarter guidance, which is better than seasonal expectations [28] Question: What is the outlook for inventory reserve and underutilization charges? - Management stated that while it is difficult to predict, they expect these charges to decrease in stronger quarters ahead [30][31] Question: What is the status of long-term supply agreements (LTSAs)? - Management clarified that they have been flexible with customers regarding LTSAs, allowing them to adjust their requirements without forcing purchases [39][40] Question: What drives confidence in above-seasonal growth for the next three quarters? - Confidence is based on improved backlog visibility and strong bookings, with expectations for inventory replenishment in the March quarter [50][52] Question: What is the expected impact of inventory charges on gross margins? - Management indicated that as inventory charges decrease, gross margins are expected to improve, potentially reaching a target of 65% in the future [66][68]

Financial Data and Key Metrics Changes - The company reported revenue of $9 million for the quarter, an increase from approximately $7 million in the same quarter of the previous year, reflecting a growth of about 29% [8] - Research and development expenses for the quarter were $55 million, which is approximately $14 million more than last year, indicating a significant investment in internal and co-development programs [9] - The net loss for the quarter was roughly $57 million, compared to a loss of about $51 million in the same quarter of the previous year, resulting in a loss of $0.19 per share [9][10] - The company ended the quarter with approximately $680 million in available liquidity, including $520 million in cash and cash equivalents and $160 million in committed government funding [4][11] Business Line Data and Key Metrics Changes - The company initiated one additional partner-initiated program in the third quarter, bringing the cumulative total to 103 programs with downstream participation [7] - The cumulative total of molecules that have reached the clinic remains at 18, including both the company's own pipeline and those led by partners [7] Market Data and Key Metrics Changes - The company is transitioning from a partnership model to focusing on internal drug development, with the first two programs now in clinical development [4][16] - The company aims to advance at least one more development candidate into IND enabling studies by the end of the year [4][26] Company Strategy and Development Direction - The company has completed its transition to a clinical-stage biotech and is focusing on advancing its internal pipeline while leveraging its clinical manufacturing capabilities [4][11] - The appointment of Dr. Sarah Nunberg as Chief Medical Officer is seen as a strategic move to enhance clinical development expertise within the company [5][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving corporate priorities and advancing development candidates, with a focus on building a strong pre-clinical pipeline [11] - The company is encouraged by the progress of its clinical trials and expects to provide updates on its pipeline in the coming year [21][41] Other Important Information - The company has received commitments for funding from the Government of Canada's Strategic Innovation Fund and the Government of British Columbia, which will support its internal pipeline advancements [10][11] - The company is managing its capital needs effectively and believes it has sufficient liquidity to fund operations well beyond the next three years [11] Q&A Session Summary Question: How to think about partner-initiated programs in the clinic? - Management acknowledged that partner-initiated programs have been slower to progress than anticipated, with some taking as long as six years to move into clinical development [15] Question: Why was now the appropriate time to bring Dr. Nunberg in as CMO? - Management indicated that the transition to drug development on their own behalf necessitated the need for a senior executive with clinical development experience [16] Question: Can you provide insights on the data disclosure strategy for the phase I 635 study? - Management plans to make a single disclosure after completing the proof of concept part of the study, expected around mid-next year [21] Question: What are the expected benefits of 635 versus existing hormonal treatments? - Management clarified that 635 is being developed as an alternative to menopausal hormone therapy, targeting women who cannot use traditional treatments [35] Question: What differentiates 575 from existing competitors? - Management highlighted that 575 aims for less frequent dosing compared to competitors, which could be a significant advantage in the clinical setting [39]

Financial Data and Key Metrics Changes - Total revenue grew to over $178 million, up 7.5% year-over-year [28] - Subscription revenue increased by 7%, while services revenue grew by 13% due to accelerated project delivery [28] - Annual recurring revenue (ARR) reached $685 million, up 7.3% [28] - Non-GAAP operating margin was 21.4%, and free cash flow margin was 32% [6][31] - Non-GAAP net income attributable to BlackLine was $38 million, representing a 21% margin [31] Business Line Data and Key Metrics Changes - New customer bookings increased by 45%, with the average new deal size more than doubling by 111% [7] - Strategic products accounted for 36% of sales, up from 32% last year [30] - Solex channel performance accounted for 26% of total revenue, remaining steady [30] Market Data and Key Metrics Changes - Customer count reached 4,424, reflecting a strategic resegmentation away from lower-end customers [29] - Revenue renewal rate was 93%, up from the prior year, driven by strong enterprise performance [29] - Net retention rate for the quarter was 103%, despite a headwind from foreign exchange [29] Company Strategy and Development Direction - The company has re-architected its leadership, go-to-market engine, and technology structures to drive revenue growth and margin expansion [5] - Focus on larger, more strategic platform deals, with a new platform-based pricing model accounting for nearly three-quarters of new customer bookings [9] - Continued progress in the public sector, with expectations for FedRAMP approval in early 2026 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering sustained, profitable growth, supported by a strong pipeline and operational improvements [26][34] - The strategic transition to platform pricing is expected to decouple revenue growth from seat count, aligning revenue with customer value [10] - Anticipated reduction in churn and improved gross bookings growth, projecting a 20% growth rate for the next year [63] Other Important Information - The company returned approximately $113 million to shareholders through share repurchases, totaling over $200 million year-to-date [32] - The migration to a modern technology stack is nearing completion, unlocking significant operating leverage [15][16] Q&A Session Summary Question: Impact of large customers pausing user adds - Management acknowledged that some deals slipped into the next quarter, costing a couple of million dollars, but noted an increase in interest and pipeline for larger deals [41][42] Question: Automation and customer attrition - Management explained that success-based attrition is occurring as customers achieve higher efficiency, requiring fewer licenses, and emphasized the importance of transitioning to platform pricing [59][60] Question: Factors driving expected bookings growth - Management highlighted the shift in conversations to higher organizational levels, deeper partnerships, and product-led growth as key drivers for the anticipated 20% bookings growth next year [71][74] Question: Competitive takeaways - Management confirmed an uptick in competitive wins, attributing it to the company's proven track record, improved implementation quality, and industry-specific expertise [75][76] Question: SAP relationship and pipeline - Management reported a solid relationship with SAP, focusing on joint customer success and reducing attrition through dedicated resources [82][84] Question: Macro environment considerations for 2026 - Management characterized the current macro environment as stable, with potential tailwinds from corporate job layoffs creating opportunities for efficiency discussions with customers [86][88]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $739 million, representing an 18% year-over-year growth, and a 22% growth when excluding political spend from the previous year [39] - Adjusted EBITDA for the quarter was approximately $317 million, or about 43% of revenue [39] - Adjusted net income for Q3 was $221 million, or $0.45 per diluted share [41] - Free cash flow for Q3 was $155 million, with a strong cash and liquidity position of about $1.4 billion in cash and short-term investments at the end of the quarter [42] Business Line Data and Key Metrics Changes - CTV (Connected TV) continues to be the largest and fastest-growing channel, representing around 50% of the business in Q3 [39] - Mobile accounted for a low 30% share, display for a low double-digit share, and audio for around 5% [39] - The company is seeing strong growth in retail media and significant adoption across various verticals [5] Market Data and Key Metrics Changes - North America represented 87% of the business, while international markets accounted for about 13% [40] - Growth in international markets, particularly EMEA and APAC, is outpacing growth in North America [40] - Strong growth was noted in verticals such as medical health, automotive, and technology [40] Company Strategy and Development Direction - The company is focused on leading the open internet and enhancing operational efficiency through new leadership and structural changes [31][63] - Investments are being made in AI and product innovations to drive growth and improve client performance [38][39] - The company aims to capture a larger share of the $1 trillion advertising TAM as more dollars shift to programmatic [36] Management's Comments on Operating Environment and Future Outlook - The management describes the current macro environment as a "tale of two cities," with some brands facing pressure from tariffs and inflation, while others are experiencing strong momentum [72] - The company is optimistic about the potential of the open internet and believes that independent DSPs will capture the majority of open internet spend [28] - The focus remains on building a more accountable and metrics-driven culture to support long-term growth [66] Other Important Information - The company has repurchased nearly $2 billion through its share repurchase program since the first authorization in 2023 [42] - New product features and upgrades are expected to significantly contribute to growth in the coming years [27] Q&A Session Summary Question: Clarification on Amazon as a competitor and the evolving competitive environment - Management acknowledges Amazon and Google as significant players but emphasizes that their focus is primarily on owned and operated inventory, while The Trade Desk focuses on decisioned, data-driven buying across the open internet [49][51] Question: Areas for impact in the next couple of years - The CFO highlights the importance of disciplined resource allocation and a metrics-driven approach to drive growth and ROI [54][55] Question: Broader advertising and macro environment trends for 2026 - Management notes strong momentum across the business but acknowledges pressures in certain sectors due to external factors like tariffs and inflation [72]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 were $934 million, a 3% increase year-over-year, driven by growth in both Topgolf and golf equipment segments [23][24] - Q3 adjusted EBITDA was $115 million, a decrease of $4 million year-over-year, primarily due to $12 million in incremental tariffs [23][24] - Net debt decreased to $2.23 billion from $2.54 billion year-over-year, attributed to increased cash [25][26] Business Line Data and Key Metrics Changes - Golf equipment segment revenue increased 4% year-over-year to $305 million, with a 4% increase in golf clubs and a 6% increase in golf balls [24] - Active lifestyle segment revenue was approximately flat at $156 million, with operating income down due to tariffs [12][24] - Topgolf revenue increased 4% to $472 million, driven by the addition of six new venues and a 1% increase in same-venue sales [24][25] Market Data and Key Metrics Changes - The U.S. golf market is up 2% year-to-date, with mid-single-digit growth in sell-through reports [7][8] - Participation in golf remains strong, with rounds played up 1.4% year-to-date [8] - Market conditions in Europe and the U.K. are positive, while Japan and Korea have seen slight declines [8] Company Strategy and Development Direction - The company is focused on delivering "demonstrably superior and pleasingly different" products to enhance pricing power and market share [10][14] - Continued emphasis on value initiatives at Topgolf, including new pricing strategies and membership programs, to drive traffic and sales [15][16][67] - The company is committed to the separation of Topgolf and is actively evaluating strategic alternatives [20][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and raised full-year guidance based on strong Q3 performance and positive trends [5][27] - The impact of tariffs is acknowledged, with ongoing efforts to mitigate costs through efficiency improvements and pricing strategies [13][27] - Positive consumer engagement and market conditions are expected to support growth in the golf equipment segment [45][55] Other Important Information - The company plans to open four new Topgolf venues in 2025, with continued strong economic returns from new locations [19][25] - The implementation of a new point-of-sale system is expected to improve service speed and efficiency [18][67] - The company is optimistic about maintaining free cash flow positivity for both the total company and Topgolf in 2025 [28] Q&A Session Summary Question: Pricing power on golf equipment due to strong demand - Management indicated that pricing power is dependent on product differentiation and market conditions, with strategic pricing adjustments being considered to offset tariff impacts [34][35] Question: Trends in Topgolf visitation and food and beverage sales - Management reported strong traffic growth and positive trends in food and beverage sales, driven by new offerings and successful value initiatives [37][39] Question: Sell-through trends and consumer behavior changes - Management noted strong sell-through trends, with consumer engagement remaining high, and indicated a positive outlook for new product launches in 2026 [43][45] Question: Visibility on corporate event bookings for Q4 - Management confirmed reasonable visibility on corporate event bookings, with over half booked 30 days in advance [74] Question: Update on CEO search and its impact on separation timing - Management stated that the search for a new CEO is ongoing, with strong candidates, but did not provide a specific timeline for the separation process [87][89]

Financial Data and Key Metrics Changes - In Q3 2025, consolidated revenue was $239 million, up 3% year-over-year [28] - Marketplace revenue was $232 million, reflecting a 14% year-over-year increase, driven by subscription-based listings revenue [29] - Non-GAAP gross profit was $214 million, up 11% year-over-year, with a non-GAAP gross margin of 90% [30] - Adjusted EBITDA was approximately $79 million, up 21% year-over-year, with an Adjusted EBITDA margin of 33% [31] - Non-GAAP diluted earnings per share was $0.57, reflecting a 30% year-over-year increase [34] Business Line Data and Key Metrics Changes - U.S. CarSID grew 8% year-over-year, with 1,182 new paying U.S. dealers added [29] - International operations saw revenue growth of 27% year-over-year, with international CarSID up 15% year-over-year [29] - Digital Deal adoption surpassed 12,500 dealers, with significant growth in high-value actions such as financing applications and deposits [21] Market Data and Key Metrics Changes - The international market is showing strong growth, with CarGurus adding over 800 customers in Canada and the UK [53] - The company is maintaining lower pricing in international markets to build market share before increasing prices [52] Company Strategy and Development Direction - The company is focused on expanding its suite of data-driven solutions across dealer workflows to enhance profitability [11] - CarGurus aims to deepen monetization through scalable software and data solutions, expanding its addressable market significantly [9][10] - The strategy includes leveraging AI capabilities to enhance dealer performance and consumer experience [24][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the marketplace and the early results of new product investments [36] - The company anticipates continued growth in both U.S. and international markets, with a focus on innovation and AI-driven solutions [37] - Management highlighted the importance of building trust and transparency in the consumer journey to enhance engagement [10][17] Other Important Information - The company is winding down the CarOffer transactions business, which is expected to impact revenue from digital wholesale going forward [30] - Cash and cash equivalents at the end of the quarter were $179 million, down from the previous quarter due to share repurchases [34] Q&A Session Summary Question: What is the trend regarding dealers using CarGurus? - Management noted that dealers are using fewer marketplace partners, with the average dropping from three to under two, indicating consolidation towards those offering better ROI [41] Question: How is the ROI for Digital Deal perceived by dealers? - Management indicated that more consumers are engaging in high-value actions, which drives higher quality leads and further ROI for dealers, presenting an opportunity for future pricing power [44][45] Question: What is the growth potential in international markets? - Management expressed pride in international growth and indicated that they are strategically keeping prices lower to build market share before increasing them [52][54] Question: How does CarSID growth relate to dealer rooftops? - Management explained that CarSID growth is influenced by the number of rooftops, with a natural headwind when rooftops grow faster than CarSID [66] Question: What insights are gained from CG Discover? - Management highlighted that CG Discover provides a conversational experience that enhances user engagement and leads to higher conversion rates [72][75]

Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) in Q3 was $0.80, the highest quarterly EPS reported in the company's history, with year-to-date adjusted EPS at $2.04, up 11% year-over-year [7][17] - Adjusted recurring net investment income increased by 42% in the quarter and 27% year-to-date [17][23] - Managed assets grew 15% year-over-year to $15 billion, while the portfolio increased by 20% [20][21] Business Line Data and Key Metrics Changes - The company closed over $650 million in new transactions in Q3, totaling $1.5 billion for the first three quarters of 2025, with expectations to exceed $3 billion for the full year, up more than 30% year-over-year [9][20] - New asset yield in Q3 was greater than 10.5% for the sixth consecutive quarter [9] - The company maintained a low annual realized loss rate of under 10 basis points, reinforcing cash flow predictability [10][11] Market Data and Key Metrics Changes - The pipeline remains above $6 billion, indicating strong demand across key end markets, including utility-scale renewables and energy efficiency [15][16] - Higher retail electricity rates are driving demand in behind-the-meter (BTM) asset classes, including rooftop solar and energy efficiency [15] Company Strategy and Development Direction - The company is focused on asset-level investing with long-term programmatic partners, emphasizing disciplined underwriting and access to attractive capital sources [27] - The introduction of the CCH1 co-investment vehicle has enhanced the company's ability to engage in larger transactions, reflecting a shift towards larger project investments [26][46] Management's Comments on Operating Environment and Future Outlook - The operating environment remains supportive for expanding investment volumes, with capital markets experiencing low volatility [5][6] - The company expects to achieve roughly 10% adjusted EPS growth in 2025 and reaffirms guidance for 8%-10% compound annual EPS growth through 2027 [8][17] Other Important Information - The company completed a $1.2 billion structured equity investment in a major clean energy infrastructure project, marking a significant milestone [12][14] - The company has broadened its capital sources, enhancing its liquidity position to $1.1 billion at the end of the quarter [24] Q&A Session Summary Question: Is there a reason the SunZia project is not named? - The project referred to is indeed the SunZia project, and the returns are consistent with other recent transactions in the grid-connected portfolio [30][31] Question: Can you discuss the pipeline and its strength? - The pipeline remains above $6 billion, with no significant pull forward observed, indicating ordinary course activity from clients [39][40] Question: How does the $1.2 billion investment signal a shift in investment strategy? - The investment reflects the company's access to capital and willingness to engage in larger transactions while managing risk accordingly [46][47] Question: What was the impact of the SunStrong ABS refinancing on the quarter? - The refinancing resulted in a cash distribution of approximately $240 million, with $200 million used to pay off mezzanine loans [50][53] Question: How have tax credit changes impacted investment types? - The extension of tax credits for wind and solar has maintained the traditional combination of tax equity structures in the market [61] Question: Are prepaid leases a product of interest? - The company is open to exploring prepaid leases but has not yet encountered any opportunities [64] Question: What is the maturity profile of the existing portfolio? - The weighted average life of the assets is around 10 years, and the recent increase in principal collections was driven by the SunStrong refinancing [67]