Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $176.5 million, representing a 9.4% year-over-year increase and a 7.2% sequential increase [6][16] - Non-GAAP gross margin was 24.4%, up from 22.5% in the previous quarter but down from 26.4% a year ago [17] - Non-GAAP EPS was $0.20, compared to a loss of $0.10 in the previous quarter and $0.09 a year ago [18] - Operating cash flow was negative $2.8 million, down from $7.4 million in the prior quarter [19] Business Line Data and Key Metrics Changes - Computing segment revenue increased by 29.7% year-over-year and 17.9% sequentially, accounting for 52.6% of total revenue [8] - Consumer segment revenue decreased by 5.8% year-over-year but increased by 23.9% sequentially, representing 15.1% of total revenue [10] - Communication segment revenue was down 1.7% year-over-year and 5.2% sequentially, making up 15.2% of total revenue [11] - Power supply and industrial segment revenue was up 7.3% year-over-year but down 9.8% sequentially, accounting for 16.8% of total revenue [12] Market Data and Key Metrics Changes - Strong demand in computing was driven by tariff-related pull-ins for PCs and growth in AI and graphics applications [5][6] - The consumer segment saw growth in wearables and gaming, while the communication segment faced challenges due to a decline in smartphone demand in China [10][11] - The power supply and industrial segment experienced weaker demand from power tools and e-mobility [12] Company Strategy and Development Direction - The company aims to transition from a component supplier to a total solutions provider, leveraging customer relationships to expand market share [7][14] - The strategic sale of 20.3% of its joint venture in Chongqing, China, for $150 million is expected to provide additional capital for technology investments and acquisitions [7][21] - The company is focused on execution, innovation, and delivering sustainable value amid a fluid geopolitical and macroeconomic environment [14] Management's Comments on Operating Environment and Future Outlook - Management noted uncertainties regarding the macro economy and geopolitics but expressed confidence in the company's ability to execute and grow [7][14] - The company anticipates a digestion period in the computing segment as initial demand for AI programs is absorbed, with expectations for low single-digit sequential growth in the next quarter [9] - Despite challenges, management remains optimistic about growth opportunities in AI, graphics, and other segments [14] Other Important Information - The company recorded an impairment charge of $76.8 million related to the equity investment in the Chongqing joint venture [22] - CapEx for the quarter was $14.3 million, with expectations for $11 million to $13 million in the next quarter [20][21] Q&A Session Summary Question: Can you provide more color on the computing segment and the digestion mentioned? - Management indicated that the digestion is related to initial shipments of a new AI program and that additional programs are in design to support future growth [25][27] Question: How much did AI contribute to growth this quarter? - AI and graphics together account for approximately 25% of the computing segment [30][31] Question: What are the expectations for gross margins moving forward? - Management expects gross margins to remain flat in the next quarter, reflecting a similar product mix and production level [32][36] Question: How will the $150 million cash inflow be prioritized? - The company plans to invest in business growth, technology, and potential M&A opportunities, with shareholder returns also being evaluated [39][41] Question: How does the company view internal capacity versus third-party foundries? - Management stated that they will continue to evaluate both internal production and third-party sourcing based on needs, emphasizing flexibility [45][47] Question: How are customers reacting to demand and tariffs? - Demand varies by market, with the computing segment seeing more caution due to tariffs, while AI and graphics remain strong [52][53]

Financial Data and Key Metrics Changes - American Coastal Insurance Corporation reported a 26% year-over-year increase in revenues and a 51% year-over-year growth in pretax earnings, achieving a core return on equity of approximately 42% [5][6] - Net income for the quarter was $26.4 million, with core income rising to $26.8 million, an increase of $7.2 million year-over-year [9] - The combined ratio improved to 60.6%, a decrease of 4.3 points from the previous year, and the non-GAAP underlying combined ratio was 62.2%, also below the 65% target [10][11] - Cash and investments grew by 34.3% since year-end to $726.2 million, reflecting strong liquidity [11] Business Line Data and Key Metrics Changes - The company’s policies in force increased by approximately 10% since year-end, with total insured value rising by about 18% to $69.8 billion as of June 30 [6] - Policy acquisition costs increased by $10.3 million or 74.8%, while general and administrative expenses decreased by $4.1 million or 34.5% due to the receipt of Employee Retention Tax Credit refunds [9] Market Data and Key Metrics Changes - The Florida market for admitted commercial residential property insurance remains relatively healthy, although property insurance rates continued to decline in most territories during the second quarter [6] - Southeast Florida is experiencing a firmer market compared to the rest of the state, with expectations of improvement due to ongoing capacity and underwriting constraints [6] Company Strategy and Development Direction - The company is cautiously optimistic about growing its presence in the apartment space in Florida, focusing on high-quality risks rather than aggressive growth targets [15][17] - The company aims to maintain a strong underwriting discipline, prioritizing expected returns on capital over sheer premium volume [17][34] Management's Comments on Operating Environment and Future Outlook - Management noted that the underwriting environment is expected to remain healthy, but potential decreases in rates could impact growth opportunities [32] - The company has regained investment grade status, which reduces the interest rate on senior notes by 100 basis points, indicating positive directional momentum [7][8] Other Important Information - The company completed its core catastrophe reinsurance program renewal with a risk-adjusted cost decrease of approximately 12.4% [6] - The company has received all Employee Retention Tax Credit refunds, confirming no lingering credits are expected [37] Q&A Session Summary Question: Insights on Skyway Underwriters and Market Context - Management expressed cautious optimism about growing in the apartment space, emphasizing a selective approach to underwriting [15][16] Question: Apartment Binding Ratio Implications - The increase in the binding ratio is attributed to gaining experience and improved relationships with distribution partners, along with seasonal factors [29][30] Question: Future Binding Ratio Expectations - Management indicated uncertainty about the binding ratio for the second half of the year, suggesting it could either increase or decrease based on market conditions [32] Question: Market Conditions in Southeast Florida - Management highlighted that Southeast Florida is a challenging market with more demand than supply, which bodes well for the company's book of business [35][36] Question: Employee Tax Retention Credit Status - Management confirmed that all expected Employee Retention Tax Credits have been received [37]

Financial Data and Key Metrics Changes - NexNAV's revenue for Q2 2025 was $1.2 million, an increase from $1.1 million in the prior year period, while revenue for the six months ended June 30, 2025, was $2.7 million compared to $2.2 million for the same period last year [15][16] - Operating expenses for Q2 2025 were $18.4 million, up approximately $2 million from the same period last year, with net loss for Q2 2025 at $63.2 million compared to a net loss of $24.4 million in the prior year period [17][18] - The company finished Q2 2025 with $176.1 million in cash, cash equivalents, and short-term investments, indicating a prudent long-term approach to liquidity [18] Business Line Data and Key Metrics Changes - The increase in revenue was primarily driven by an increase in service revenue from technology and services contracts with government and commercial customers [16] Market Data and Key Metrics Changes - The FCC granted consent for licenses to be assigned to NexNAV, which is expected to result in public interest benefits, including further development of the MLMS band [7][8] Company Strategy and Development Direction - NexNAV is focused on strengthening PNT resiliency in support of national security, public safety, and the economy, with a commitment to executing its strategic roadmap and driving innovation in geolocation technology [14] - The company is advocating for a terrestrial complement and backup to GPS, emphasizing the urgency of this national security priority [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress made and the urgency of their proposal to the FCC, although they cannot speculate on the timing of the NPRM [51] - The company highlighted the vulnerabilities of GPS and the need for a robust solution to address these threats [13] Other Important Information - NexNAV has filed multiple technical and economic studies to support its proposal, demonstrating the feasibility and public interest benefits of its approach [10][12] - The company is exploring partnerships with satellite players to create a comprehensive PNT solution [22] Q&A Session Summary Question: What are your next steps in the FCC process on the progression towards a hope for NPRM? - Management indicated that they have submitted a complete and rigorous analysis to the FCC and continue to advocate for their position, believing the record is sufficient for the FCC to move to NPRM [20][21] Question: Any updates on cooperating with space-based alternatives? - Management confirmed ongoing discussions with industry players but had no specific updates to share at this time [22] Question: Can you discuss the Atran and Oslo courts announcement? - Management expressed excitement about the announcement, highlighting its potential to enable a cohesive PNT solution through partnerships [26] Question: Do you anticipate participating in field testing? - Management stated that they do not believe additional testing is required for the FCC to move forward with an NPRM [30] Question: How do you think the One Big Beautiful Bill auction authority will impact your process with the government? - Management noted that the impact would be minimal as their spectrum is already licensed and available for optimization [38][39] Question: Can you summarize the differences in economic analysis findings? - Management highlighted flaws in the opposing report, emphasizing the minimal costs associated with retuning and the value of GPS resiliency [40][41] Question: How does resilient PNT fit into AI? - Management explained that accurate PNT data is crucial for AI applications, particularly in critical infrastructure and defense [46][48]

Financial Data and Key Metrics Changes - The company generated revenue of $1,308 million, an increase of 10% compared to the previous year [16] - Adjusted EBITDA was $526 million, reflecting a significant increase of 75%, with an adjusted EBITDA margin of 40%, up from 25% in the prior year [16] - The UFC segment reported revenue of $416 million, a 5% increase, while adjusted EBITDA was $245 million, a 6% increase [16][17] - The WWE segment generated revenue of $556 million, a 22% increase, with adjusted EBITDA of $330 million, a 31% increase [20] - The IMG segment saw a revenue decrease of 4% to $307 million, but adjusted EBITDA improved significantly to $29 million from a negative margin in the prior year [23] Business Line Data and Key Metrics Changes - UFC's partnerships and marketing revenue increased by 39% to $86 million, driven by new partnerships and renewals [17] - WWE's live events and hospitality revenue increased by 29% to $186 million, attributed to higher ticket sales and site fee revenue [20] - IMG's revenue decline was primarily due to the loss of FA Cup rights, partially offset by new production agreements [23] Market Data and Key Metrics Changes - The company set 36 individual market records for ticket sales in WWE, selling out 16 events during the quarter [9] - WWE's partnership with Netflix has shown robust growth, with over 280 million view hours since its launch [10] - The company anticipates strong performance in upcoming events, including the Canelo versus Crawford fight and the FIFA World Cup [14][30] Company Strategy and Development Direction - The company is focused on capitalizing on sustained demand for premium content and live events, raising its full-year guidance for revenue and adjusted EBITDA [5][29] - The strategy includes leveraging partnerships across multiple TKO properties, enhancing brand partnerships, and integrating IMG On Location and PBR [18][30] - The recent ESPN deal for WWE's premium live events is expected to create a high-margin revenue stream with attractive visibility and stability [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued momentum across UFC and WWE, highlighting strong operating performance and the potential for further growth [15][29] - The company is optimistic about the impact of the new ESPN deal and the integration of IMG, expecting to achieve significant savings and revenue growth [30] - Management noted that while there are challenges in the upcoming quarters, the overall outlook remains positive with strong demand for premium content [34] Other Important Information - The company generated $375 million in free cash flow, with a conversion rate of 71% [27] - The company ended the quarter with $2.769 billion in debt and $535 million in cash [27] - A share repurchase program of $2 billion is expected to commence in 2025, subject to market conditions [27] Q&A Session Summary Question: What are the implications of the new WWE deal with ESPN? - Management emphasized the importance of not putting all rights on one platform, highlighting the benefits of having multiple partners to maximize monetization and reach [42][44] Question: Why was the WWE PLE deal announced before the UFC deal? - Management clarified that the timing was due to simultaneous negotiations for multiple properties and confirmed that the UFC deal is progressing well [60][62] Question: What are the growth opportunities beyond the UFC media rights renewal? - Management highlighted the potential for increased profitability through partnerships, sponsorships, and the expansion of live events, indicating a strong growth trajectory [96][100]

Financial Data and Key Metrics Changes - For Q3 2025, Jack in the Box reported a system same-store sales decrease of 7.1%, with franchise same-store sales down 7.2% and company-owned same-store sales down 6.4% [23][24] - Consolidated adjusted EBITDA was $61.6 million, down from $78.9 million in the prior year, primarily due to sales deleverage [30] - GAAP diluted earnings per share for Q3 was $1.15 compared to a net loss per share of $6.26 in the same quarter last year [30] Business Line Data and Key Metrics Changes - Jack brand's restaurant level margin percentage decreased to 17.9%, down from 21% a year ago, driven by sales deleverage [24] - Del Taco's system same-store sales declined 2.6%, with franchise same-store sales down 2.7% and company-owned same-store sales down 2.2% [26] - Del Taco's restaurant level margin was 9.7%, down 370 basis points from the prior year, primarily due to lower sales and higher costs [27] Market Data and Key Metrics Changes - The macro environment remains challenging, with consumers, particularly in Hispanic communities, being cautious and pulling back spending [8][56] - Digital sales mix reached 18.5% for Jack in the Box, with Del Taco achieving approximately 20% of system-wide sales through digital channels [17][26] Company Strategy and Development Direction - The company is refocusing on improving the guest experience through operational excellence, quality food at good value, and modernizing restaurants [12][15][17] - The "Jack on Track" plan aims to close underperforming restaurants and improve franchisee health, with expectations to close 80 to 120 restaurants by the end of 2025 [32][35] - The company plans to invest $5.5 million in incremental marketing to support new product offerings and improve sales performance [11][38] Management's Comments on Operating Environment and Future Outlook - Management noted that the low-income consumer remains cautious, impacting sales, while the mid-income consumer has also shown signs of struggle [54][56] - The company expects same-store sales for Jack in the Box to decline in the low to mid-single digits for the fiscal year, with a focus on improving value offerings [39] - Management expressed confidence in the long-term potential of both Jack in the Box and Del Taco brands despite current challenges [6][8] Other Important Information - The company did not repurchase any shares during the quarter and has discontinued its dividend [31] - Total debt outstanding at quarter end was $1.7 billion, with a net debt to adjusted EBITDA leverage ratio of 5.7 times [32] Q&A Session Summary Question: Guidance for Jack in the Box same-store sales - Management indicated that Q4 performance is expected to improve with new value offerings and marketing support [42][44] Question: Real estate sales target of $100 million - The $100 million figure is seen as a minimum target, with flexibility based on the Del Taco process and cash accumulation [47][48] Question: Operational improvements with Shannon McKinney's return - Shannon is expected to focus on operational basics, improving service quality and accountability [52][53] Question: Sensitivity of restaurant margin to same-store sales changes - A 1% change in same-store sales is estimated to impact restaurant margin by approximately 10 basis points [75][78] Question: Impact of soft sales on the Jack on Track plan - Management confirmed that soft sales would not delay the Jack on Track initiatives, as closures and real estate sales will be spread over several years [81][82] Question: Interest in remodels from franchisees - There was high interest in the previous remodel program, with over 1,000 applications for a limited number of spots [93] Question: Cadence of remaining restaurant closures - Management anticipates that at least half of the remaining closures will occur by the end of the fiscal year [96][97]

Financial Data and Key Metrics Changes - Portfolio purchases in Q2 2025 were $367 million, up 32% compared to Q2 2024 [6][13] - Collections increased by 20% to a record $655 million, with Estimated Remaining Collections (ERC) rising 12% to $9.4 billion [6][14] - Earnings per share for Q2 were $2.49, an increase of 86% compared to the same quarter last year [6][26] - Leverage improved to 2.6 times, compared to 2.7 times a year ago [7][26] - Net income increased by 82% to $59 million [26] Business Line Data and Key Metrics Changes - Midland Credit Management (MCM) in the U.S. had record portfolio purchases of $317 million, a 34% increase year-over-year [8][18] - MCM collections reached $490 million, up 24% compared to Q2 last year [8][18] - Cabot Credit Management in Europe reported collections of $164 million, up 10% year-over-year, and portfolio purchases of $50 million [8][19] Market Data and Key Metrics Changes - U.S. revolving credit remains near record levels, with elevated charge-off rates driving robust portfolio supply [15][16] - U.S. consumer credit card delinquencies are at multi-year highs, indicating favorable purchasing conditions [16][17] - In Europe, the market is impacted by subdued consumer lending and low delinquencies, leading to lower supply [19][57] Company Strategy and Development Direction - The company focuses on markets with strong regulatory frameworks and stable long-term returns [12] - The three-pillar strategy emphasizes market focus, operational execution, and cash generation [11][15] - The company aims to maintain a strong balance sheet and flexible funding structure to capitalize on purchasing opportunities [30][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable purchasing environment in the U.S. and expects MCM to surpass its 2024 purchasing record [41][42] - The company raised its guidance for global collections growth to approximately 15.5%, expecting total collections to reach $2.5 billion [34][30] - Management noted stable consumer payment behavior despite macroeconomic uncertainties [23][26] Other Important Information - The company increased its revolving credit facility by $190 million to $1.485 billion, extending its maturity to 2029 [27] - Interest expense is expected to be approximately $285 million for the year, with a corporate tax rate around 25% [25][34] Q&A Session Summary Question: Any one-timers in the second quarter affecting the $285 million guidance? - Management confirmed that the $285 million is the expected figure for the year without any anticipated one-timers [39] Question: What is the outlook for supply given the recent downtick in charge-off rates and delinquencies? - Management indicated that supply remains elevated and favorable, with confidence in purchasing ability [41][42] Question: Can you provide updated collections multiples for MCM and Cabot? - For 2025 vintage, MCM's multiple is 2.3 and Cabot's is 2.4 [43] Question: What factors contributed to the year-over-year growth in collections? - Management highlighted stable U.S. consumer behavior, increased purchasing, and operational performance improvements [47] Question: Can you break down the outperformance in collections between the U.S. and Cabot? - Approximately $45 million of the $55.6 million outperformance was attributed to MCM [50][51] Question: What is the competitive dynamics and pricing in the purchasing environment? - The U.S. market remains stable with good supply and pricing, while Europe faces lower supply and higher competition [56][57]

Financial Data and Key Metrics Changes - The company reiterated its 2025 guidance on all metrics and reinstated its wastewater guidance, indicating resilience in its core desalination business despite macroeconomic challenges [4][5] - An additional share repurchase program was announced, totaling $105 million over the past ten months, aiming to repurchase over 10% of outstanding shares while continuing to invest in growth [5] Business Line Data and Key Metrics Changes - The contracted desalination capacity, water reuse capacity, and CO2 refrigeration installations are all experiencing high growth rates, positioning the company to capture upside trends towards its 2029 goals [5][6] - The company reported shipping over $2 million in the quarter due to improved tariff conditions in China, which allowed previously stalled projects to proceed [24][25] Market Data and Key Metrics Changes - The company has broadened its wastewater footprint significantly, focusing on five key verticals: municipal, chemical, textile, manufacturing, and mining, which are expected to yield the largest market share [27][28] - The reduction in tariffs in China has positively impacted project execution, leading to better-than-expected results in that market [24][25] Company Strategy and Development Direction - The company is focused on long-term trends driving its business, including increasing water scarcity and the need for water reuse, which are expected to enhance growth opportunities [5][35] - The management emphasized the importance of regulatory drivers and economic factors in the increasing demand for wastewater treatment solutions [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving higher revenue targets for desalination in 2026, citing a strong pipeline of contracted capacity [10][11] - The management noted that the current testing season for new products is progressing well, with ongoing engagement with OEMs and the addition of new testing sites [16][17] Other Important Information - The company is developing a business case for data center markets and heat pumps, with initial assessments indicating limited growth potential in the CO2 segment for data centers [18][19] - The management highlighted the importance of reliability testing for new products, which is crucial for converting testers into dedicated users [30][31] Q&A Session Summary Question: Confidence in achieving higher desalination revenue targets - Management indicated that while it's too early to tell, recent awards and contracted capacity give them confidence for 2026, with more guidance expected in the next earnings call [10][11][12] Question: Expectations for next-gen PX product pricing - The company expects to maintain or increase selling prices based on capacity, with fewer units needed to fill a plant [14] Question: Update on CO2 work with OEMs - Discussions with Hill Phoenix are ongoing, and the summer testing season is proceeding as expected with new sites being added [16][17] Question: Progress on data center market business case - Initial assessments suggest limited growth potential for CO2 in data centers, but heat pumps show promise [18][19] Question: Better-than-expected results in China - The reduction in tariffs allowed previously stalled projects to move forward, leading to improved results [24][25] Question: Broadened wastewater footprint - The company has successfully expanded its reference case list in key verticals, meeting its expectations [27][28] Question: Drivers for increasing water reuse - The motivations for increased water reuse are both economic and regulatory, driven by water scarcity issues [35]

Financial Data and Key Metrics Changes - Gross billings increased by 10.1% year-over-year to $2.23 billion in Q2 2025, compared to $2.03 billion in Q2 2024 [15] - PEO gross billings rose by 10.3% to $2.22 billion, while staffing revenues declined by 12% to $17 million [15] - Net income per diluted share increased to $0.70 from $0.62 in the prior year quarter, reflecting strong revenue growth and operating leverage [20] Business Line Data and Key Metrics Changes - The staffing business experienced an 11.5% decline year-over-year, attributed to macroeconomic uncertainty and client reluctance to fill staffing orders [6][15] - PEO worksite employees (WSEs) grew by 8%, driven by a record number of new client additions [15] - Average billing per WSE increased by 1.7%, influenced by rising wages but offset by lower average hours worked [20] Market Data and Key Metrics Changes - Southern California, the largest region, saw a 12% growth, while the Pacific Northwest declined by 4% [16] - Asset light markets experienced a significant growth of 100% [16] - Client hiring remained modest and below historical levels, impacting overall workforce growth [6][15] Company Strategy and Development Direction - The company is focusing on expanding its product offerings, particularly in health insurance, to capture a broader market, including white-collar businesses [10][40] - Investments in technology and product enhancements are aimed at improving client service and expanding the total addressable market [10][41] - The company plans to open one or two additional branches by the end of the year, following successful entries into Chicago and Dallas [8][62] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic uncertainty has caused clients to pause hiring, but they remain optimistic about future growth driven by new client acquisitions [6][13] - The company has increased its growth outlook for the remainder of the year, expecting gross billings to rise between 9% and 10% [22] - Management emphasized the importance of controllable growth and client retention as key drivers of future performance [45] Other Important Information - The company has a strong balance sheet with $90 million in unrestricted cash and no debt [20] - A new $100 million stock repurchase program was approved, reflecting the company's commitment to returning value to shareholders [22] - The workers' compensation program continues to perform well, with favorable adjustments recognized in the quarter [17][18] Q&A Session Summary Question: Status of workers' compensation rate increase - The California regulatory board recommended an over 11% rate increase, but the approved rate was around 9%, expected to push pricing up [27][28] Question: Impact of workers' compensation adjustments - The $8.8 million adjustment was consistent with prior year adjustments, indicating normal performance [32] Question: Profit potential from workers' compensation renewal - The renewal is expected to improve profit potential, especially if claims continue to perform better than expected [36][38] Question: Technology enhancements and market positioning - The company aims to aggressively target the white-collar market with new technology offerings, expanding its total addressable market [40][41] Question: Performance of healthcare policies - The healthcare market is expected to see higher renewal rates, with the company viewing this as an opportunity for growth [42][44] Question: Considerations for raising guidance - Strong year-to-date performance and consistent controllable growth led to the decision to raise guidance for the remainder of the year [45][46]

Financial Data and Key Metrics Changes - Revenue for the second quarter reached $31.4 million, representing a 15% increase compared to the previous year, driven by strong Tableau console sales and consistent utilization [6][20] - Recurring revenue from consumables and services was $22.5 million, an 11% increase year-over-year [6][21] - Non-GAAP gross margin expanded to 38.4%, up more than one percentage point from last year [7][22] - Non-GAAP operating loss was $13.4 million, a 36% reduction from the prior year [24] - Net loss for the quarter was $18.5 million, down 46% from the previous year [24] Business Line Data and Key Metrics Changes - Product revenue was $23.1 million, with console revenue at $8.9 million and consumable revenue at $14.2 million, marking a 20% increase from the prior year [21] - Consumable revenue saw a 17% increase, contributing to the overall growth in recurring revenue [6] Market Data and Key Metrics Changes - Tableau is now utilized in over 900 acute and subacute sites across the United States, indicating strong market penetration [8] - A new enterprise agreement was secured with one of the largest national health systems, potentially placing hundreds of Tableau consoles [8] Company Strategy and Development Direction - The company aims to grow console revenue, expand gross margin, and drive towards profitability, with a focus on insourcing dialysis services [17][18] - The commercial organization has undergone significant transformation, enhancing sales processes and team capabilities to better target enterprise-level opportunities [11][72] - The company is optimistic about the market opportunity, particularly in the acute care sector, where penetration remains low [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline and market demand, despite monitoring potential impacts from federal funding cuts in healthcare [13] - The company is on track to achieve cash flow breakeven and profitability, with a goal to use less than $50 million in cash for the year [15][28] Other Important Information - The company has produced over 1.5 million Tableau disposable treatments since bringing production in-house in 2023, which is crucial for quality and cost reduction [14] - The Chief Nursing Officer's role will focus on facilitating the transition from outsourcing to insourcing dialysis services, emphasizing the importance of nursing leadership in the sales process [50] Q&A Session Summary Question: Guidance and momentum for the second half of the year - Management acknowledged strong performance in the first half and expressed optimism for the second half, citing improvements in commercial transformation and high console utilization [32][36] Question: Status of Salesforce transition and productivity - Management confirmed that the commercial organization has significantly improved, with new tools and processes enhancing sales effectiveness [39][40] Question: Sustainability of deal strength and ASPs - Management indicated that strong ASPs are supported by high uptake of new products and a diversified pipeline, with enterprise agreements expected to drive future growth [45][48] Question: Focus of the new Chief Nursing Officer - The Chief Nursing Officer will work closely with the sales organization to facilitate the transition to insourcing, leveraging her experience to guide potential customers [50] Question: Outlook for cash burn into 2026 - Management provided limited guidance but indicated that cash burn may increase as production ramps up, with more detailed guidance expected later in the year [75]

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2025 was $37.5 million, down from $41.3 million in Q2 2024, primarily due to lower small scale fabrication revenue and weaker services activity [15] - Adjusted EBITDA for Q2 2025 was $1.9 million, a decrease from $2.5 million in Q2 2024, excluding $1.8 million of transaction costs related to the ENGlobal acquisition [15] - Cash and short-term investments at the end of Q2 2025 totaled approximately $62 million, reflecting the impact of capital expenditures and share repurchases [17] Business Line Data and Key Metrics Changes - Services division revenue for Q2 2025 was $22 million, a decrease of 3.5% compared to the previous year, mainly due to lower offshore maintenance activity [15] - Fabrication division revenue for Q2 2025 was $15.8 million, down approximately 15% year-over-year, attributed to lower small scale fabrication activity and delays in new project awards [16] - Corporate division adjusted EBITDA was a loss of $1.2 million for Q2 2025, an improvement from a loss of $2 million in the prior year [17] Market Data and Key Metrics Changes - The company is seeing extended decision cycles for new project awards in certain end markets due to market uncertainty, particularly in the fabrication business [10] - There is a noted pickup in dialogue with customers regarding large projects, particularly in the LNG and petrochemical markets, driven by stabilizing tariff positions [25][28] Company Strategy and Development Direction - The company has focused on reducing risk, growing services and small scale fabrication businesses, and strengthening project execution, which has led to more stable core business performance [5] - The acquisition of ENGlobal is expected to broaden product and service offerings, expand the customer base, and diversify into new end markets [6][7] - The company remains committed to a balanced capital allocation framework, prioritizing investments in business growth and potential acquisitions [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term competitive positioning despite near-term challenges, including ongoing trade and macroeconomic uncertainty [20] - The company anticipates that consolidated results will improve significantly in Q4 2025 and into 2026, particularly for the fabrication division [19] Other Important Information - The integration of the ENGlobal acquisition is progressing as expected, with initial positive reception from customers and potential strategic partners [8][9] - The company expects operating losses from the ENGlobal business in the second half of the year, estimated between $1.5 million to $2 million [20] Q&A Session Summary Question: Can you describe the industries and end markets where you're seeing a pickup in dialogue on large projects? - Management noted increased discussions in the LNG and petrochemical markets, with improved frequency and quality of conversations due to stabilizing tariff positions [25] Question: Is the large structural steel project a first of its kind for Gulf Island? - Management confirmed that while it is a new end market, Gulf Island is well-equipped for the project, leveraging their capabilities and experience [26] Question: How is the labor situation affecting the company? - Management indicated that there has not been a dramatic impact on labor availability, and they are confident in their ability to hire quality employees for upcoming projects [30][31]