Financial Data and Key Metrics Changes - Consolidated revenues for Q2 2025 were $1,110 million, representing a 4% year-over-year decrease, primarily due to decreased revenue in the Active Lifestyle segment [29] - Q2 adjusted EBITDA was $196 million, a 5% year-over-year decrease, mainly due to decreased revenue and incremental tariffs [30] - The company raised its full-year revenue guidance to a range of $3,800 million to $3,920 million, reflecting an increase of over $30 million at the midpoint compared to prior guidance [35] Business Line Data and Key Metrics Changes - Golf equipment revenue for Q2 was approximately flat year-over-year at $412 million, exceeding expectations [30] - Active Lifestyle segment revenue decreased by $36 million year-over-year to $214 million, primarily due to the sale of Jack Wolfskin and soft market conditions [31] - Topgolf Q2 revenue decreased by 2% year-over-year, primarily due to a 6% decline in same venue sales, partially offset by higher revenue from new venues [32] Market Data and Key Metrics Changes - Market conditions in the U.S. for golf equipment remain healthy, with rounds played approximately flat on a playable hour adjusted basis [8] - Conditions in the UK and Northern Europe markets are strong, while Asia and Central Europe are softer year-over-year [9] - The athleisure category in the Active Lifestyle segment is down mid to high single digits during Q2 [11] Company Strategy and Development Direction - The company closed the sale of Jack Wolfskin, enabling greater business focus and financial flexibility for Topgolf [4] - The company is committed to ongoing cost reduction and margin improvement initiatives, which have been beneficial in the current operating environment [6] - The strategic process for Topgolf is ongoing, with both a spin and sale being evaluated, although a spin is now impractical for the second half of the year [15][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the golf equipment segment, citing healthy consumer engagement and upcoming product launches [10] - The company is optimistic about the improving trends in same venue sales at Topgolf, driven by value initiatives and enhanced customer experience [12][39] - Management acknowledged the challenges posed by tariffs, increasing the estimated impact from $25 million to $40 million for the year [5][45] Other Important Information - The company reported an increase in available liquidity to $1,160 million as of June 30, 2025, primarily due to cash proceeds from the sale of Jack Wolfskin [32] - Net debt decreased to $2,390 million, down from $2,620 million year-over-year, reflecting improved cash balances [33] - The company expects to be free cash flow positive at both the total company and Topgolf in 2025 [38] Q&A Session Summary Question: Can you talk about the robust process regarding the spin and sale of Topgolf? - Management confirmed that the strategic direction remains unchanged, with only the timing of a potential spin being affected due to leadership changes [42][80] Question: What is the current health of the golf industry and drivers of the improving golf equipment business? - Management noted that the golf equipment business remains healthy, with consumer engagement strong and sell-through up low single digits [49] Question: What were the biggest contributors to the value initiatives at Topgolf? - Management highlighted the success of the Sunday Fun Pass and other value offerings, which significantly increased traffic and improved customer perception [57] Question: Can you provide an update on cost reduction efforts and labor efficiency initiatives? - Management indicated that teams have executed well on cost reduction, with improvements in labor efficiency and service speed contributing to stable margins [66] Question: How is the TravisMathew business trending? - Management reported that while the athleisure market is down, the women's category within TravisMathew continues to perform well [72]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $521 million, down 2.5% year-over-year, attributed mainly to the low-margin promotional portion of Print [4][17] - Comparable adjusted EBITDA increased by 4.5% year-over-year to $106 million, with EBITDA margin expanding by 140 basis points to just above 20% [4][5] - Comparable adjusted EPS rose by 3.5% to $0.88, and year-to-date free cash flow expanded by over 200% to more than $34 million compared to 2024 [5][17] - The leverage ratio improved to 3.5 times, with a target to be below 3 times next year [5][28] Business Segment Data and Key Metrics Changes - Data Solutions segment revenue grew by over 18% in Q2, continuing to be a standout performer [5][22] - Merchant Services revenue increased by 2.9% year-over-year to $101.4 million, with adjusted EBITDA improving by 13% to $21.7 million [18][19] - B2B payments segment revenues were $71 million, up 1.1% year-over-year, with adjusted EBITDA expanding by 11.4% [20] - Print segment revenue declined by 9% year-over-year to $281.1 million, with adjusted EBITDA declining by 3.7% but maintaining a margin of 32.2% [23][26] Market Data and Key Metrics Changes - The overall revenue ratio remains modestly weighted toward Print at 54% to 46% for the year [10] - Payments and Data segments combined have expanded year-over-year by a blended rate of just under 7.5% [10] Company Strategy and Development Direction - The company is focused on transforming from a paper payments company to a digital payments and data company, with ongoing investments in technology and partnerships [15][11] - The acquisition of CheckMatch is expected to enhance the Deluxe Payment Network, creating revenue and cost synergy opportunities [11][12] - The company aims to maintain strong margins in Print while avoiding low-margin promotional deals [8][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic uncertainty but expressed confidence in affirming revenue and earnings guidance while increasing free cash flow expectations [30][33] - The company expects to see continued growth in the Data Solutions segment and a solid exit growth rate for B2B payments as it enters 2026 [21][30] Other Important Information - The company ended Q2 with a net debt level of $1.44 billion, a reduction from previous levels, and aims for a leverage ratio of three times or better by 2026 [28][29] - A quarterly dividend of $0.30 per share was approved, payable on September 2, 2025 [30] Q&A Session Summary Question: What has driven the efficiency in the merchant business? - Management highlighted a focus on operating efficiency, pricing strategies, and new market expansions as key drivers for margin improvement [35][36] Question: Has Brian Mahoney implemented any ideas in the merchant business? - Management confirmed that Mahoney has made significant progress and is already seeing positive results from his initiatives [37][39] Question: What are the key drivers for the increase in free cash flow? - The increase is attributed to improved profitability, reduced restructuring spend, and better working capital efficiency [40][42] Question: What continues to drive growth in the Data Solutions segment? - Growth is driven by helping financial institutions target low-cost deposits and expanding into non-FI verticals [46][48] Question: What does the CheckMatch acquisition bring to the company? - CheckMatch enhances the existing Deluxe Payment Network by adding more lockboxes, allowing for digital payment processing and improved cash flow [49][51] Question: What is the outlook for future acquisition opportunities? - The company remains disciplined in capital allocation and will consider opportunities that align with its strategy for growth [60][62] Question: How is the company managing macroeconomic challenges? - Management noted a continuation of consumer hesitancy but emphasized good forecast accuracy and performance across the business [55][57]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $484 million, an increase of 11% year-over-year, with recurring and other revenue growing by 12% to $455 million [13][14] - GAAP net income was $89 million, or $1.58 per diluted share, while non-GAAP net income increased by 27% to $117 million, or $2.60 per diluted share [13][14] - Adjusted EBITDA rose by 24% year-over-year to $198 million, with an adjusted EBITDA margin of 41%, reflecting a 450 basis point increase [14][15] - Cash and cash equivalents at the end of Q2 were $532 million, with no debt [15] Business Line Data and Key Metrics Changes - The introduction of the AI-driven product "iWant" is expected to enhance client engagement and satisfaction, potentially increasing recurring revenue [6][10] - The sales team has set new records every quarter, indicating strong performance across business lines [11] Market Data and Key Metrics Changes - The average daily balance on funds held for clients was approximately $2.6 billion, up 10% year-over-year [15] - Interest on funds held for clients declined by 11% year-over-year to approximately $28 million [13] Company Strategy and Development Direction - The company is focusing on innovation, particularly in AI and automation, to enhance client value and drive sales growth [11][15] - The launch of iWant is seen as a transformative step in how clients interact with the software, aiming to eliminate the need for extensive training [6][10] - The company is raising its revenue and adjusted EBITDA guidance for the year based on strong first-half results [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment and the potential for continued growth, citing less competition in the market [94][95] - The company anticipates that iWant will significantly impact new sales, retention, and overall client engagement [100] Other Important Information - The company plans to increase marketing and R&D budgets in the latter half of the year to support the iWant product launch [18] - Paycom has been recognized in various rankings, including being listed among the best companies by Time Magazine and Newsweek [11] Q&A Session Summary Question: How does iWant fit into the overall business strategy? - Management described iWant as a revolutionary tool that simplifies user interaction with the system, enhancing overall client experience and engagement [20][22] Question: What are the implications for gross margins with increased AI usage? - Management acknowledged the need for additional investment in technology but expects margins to improve as automation increases efficiency [28] Question: What is the marketing plan for iWant? - The marketing plan includes activating clients gradually, with expectations to have 15-20% of clients activated shortly after launch [31][32] Question: How will iWant be monetized? - iWant is expected to be part of the base platform, enhancing overall product adoption and retention without direct charges for its use [39][41] Question: What was different in Q2 compared to expectations? - Management noted record sales and efficiency gains as key factors contributing to better-than-expected performance [43][45] Question: How is the demand environment and competitive landscape? - The demand environment remains strong, with management noting a decrease in competition due to recent market consolidations [94][95]

Financial Data and Key Metrics Changes - Adjusted EBITDA improved by nearly $6,000,000 compared to the previous year, reflecting successful productivity initiatives [6] - Consolidated net loss was $11,300,000 for Q2 2025, compared to a net loss of $3,400,000 in Q2 2024, primarily due to higher unrealized non-cash derivative losses and lower crush margins [21] - Net sales were $218,000,000, which is $18,000,000 lower than the prior year due to fewer gallons sold and lower average prices [17] Business Line Data and Key Metrics Changes - Sold 86,700,000 gallons compared to 95,100,000 gallons in the same quarter last year, reflecting a rationalization of unprofitable business [17] - Gross profit improved by $5,600,000 at Western facilities, with the addition of the Alto Carbonic Liquid CO2 Processing Facility contributing to a $3,000,000 improvement at the Columbia plant [21] - The Marketing and Distribution segment improved due to the integration of bulk volume customers and transitioning away from low-return businesses [8] Market Data and Key Metrics Changes - The annual uptick in demand from the summer driving season helped lift ethanol prices and improved crush spreads, with market crush averaging $0.30 per gallon for July [14][18] - The 45Z credit extensions through 2029 and new eligibility restrictions are expected to benefit domestic renewable fuel production [11] - Current carbon intensity scores indicate that Columbia will qualify for 10¢ per gallon for 2025 and up to 20¢ for 2026, equating to approximately $4,000,000 in 2025 and $8,000,000 in 2026 [12] Company Strategy and Development Direction - The company is focusing on short-term projects with immediate returns while laying groundwork for longer-term capital-intensive projects [7] - Evaluating projects to lower carbon intensity and capture benefits from 45Z regulations, as well as improving efficiency and productivity [7][24] - The regulatory environment is seen as positive, creating opportunities for the company to capitalize on [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operational improvements and the potential for positive margins for the remainder of the summer [14] - The company is working on alternatives for CO2 sequestration following regulatory changes and is focused on optimizing the value of CO2 production [7][11] - Management highlighted the importance of repairing the dock to restore operational efficiency and capitalize on European sales opportunities [29] Other Important Information - The company has rightsized corporate overhead to align with its current footprint, aiming for annual savings of approximately $8,000,000 [9] - The annual meeting of stockholders resulted in the election of two new board members and the appointment of a new Chairman and Vice Chair [16] - The company is actively working with Guggenheim on Western asset optimization and monetization plans [24] Q&A Session Summary Question: Outlook for operational benefits from the Carbonic acquisition - Management indicated that there is still substantial capacity for growth at the Carbonic facility, with room to increase production [27][28] Question: Impact of dock damage on export strategy to Europe - Management confirmed that while dock damage has created challenges, they have developed workarounds and are exceeding initial sales projections for Europe [29][30] Question: Clarification on the Eagle Alcohol improvement - Management clarified that the $1,100,000 improvement was a one-time event related to deferred acquisition costs [34] Question: Further reductions in SG&A - Management noted ongoing efforts to scrutinize spending and negotiate better terms with suppliers, which collectively will have a meaningful impact [36] Question: Details on the Western asset monetization process - Management stated that they are in discussions with prospective buyers and evaluating opportunities, with the process taking time due to the unique nature of the assets [44][45]

Financial Data and Key Metrics Changes - Second quarter revenues reached $141 million, exceeding guidance by $21 million, with year-to-date adjusted EBITDA of $106 million, leading to an increase in 2025 adjusted EBITDA guidance from $150 million to $200 million [6][12][26] - Adjusted net income for the second quarter was $9 million, a significant improvement from a loss of $122 million in the same period of 2024 [13] - Net leverage improved to 1.9 times debt to adjusted EBITDA, down from 9.9 times in 2024 [6][23] Business Line Data and Key Metrics Changes - Total product sales for the second quarter were $126 million, with a notable increase in smallpox revenue offsetting declines in NARCAN and anthrax sales [16][17] - NARCAN sales increased by approximately 50% compared to 2024, indicating a recovery from previous disruptions [18] - Year-to-date total product sales were $328 million, with NARCAN revenue at $113 million and smallpox revenue at $147 million, reflecting strong international demand [21][22] Market Data and Key Metrics Changes - International medical countermeasure (MCM) sales accounted for 40% of revenues year-to-date, highlighting the company's strong position in global markets [8] - The naloxone market is expected to grow in the low to mid single digits, driven by ongoing public health initiatives [28] Company Strategy and Development Direction - The company is focused on strategic investments for long-term growth, operational efficiency, and maintaining market leadership in biodefense and public health sectors [5][10] - Plans include expanding international revenue, enhancing product offerings, and pursuing synergistic external opportunities [24][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges and capitalize on growth opportunities, particularly in the MCM sector [29][40] - The company anticipates a strong second half of 2025, with revenue guidance narrowed to $765 million to $835 million [26][40] Other Important Information - The company has implemented a $50 million share repurchase program and repurchased 1.1 million shares in the second quarter [9][25] - Total liquidity reached $367 million, significantly improved year-over-year, providing financial flexibility for growth initiatives [22][23] Q&A Session Summary Question: Can you elaborate on NARCAN pricing actions and market growth? - Management indicated that NARCAN pricing has been stable recently, with expected low to mid single-digit growth in market volume due to ongoing opioid overdose issues [45][46][52] Question: Have you seen changes in market demand due to new synthetic opioids? - Management acknowledged concerns about new synthetic opioids and emphasized the importance of making NARCAN widely available to combat overdose risks [56][58] Question: Any updates on the competitive landscape for smallpox antiviral? - Management is optimistic about the potential of their antiviral product, Tambexa, and is actively conducting clinical trials to demonstrate its effectiveness [60][62] Question: Are there additional contract modifications expected in 2025? - Management confirmed expectations for more revenue-generating contract modifications in the second half of the year, building on the seven secured year-to-date [64][66]

Financial Data and Key Metrics Changes - The company reported an annualized advertising revenue run rate exceeding $1 billion, marking a rapid growth trajectory in this segment [8][12][15] - The net revenue margin expanded as anticipated, with the take rate in Q2 aligning with expectations, driven by seasonal Dasher costs and improvements in product quality [57][60] Business Line Data and Key Metrics Changes - New verticals experienced strong growth, outpacing the core restaurant business, with expectations to become volume share leaders within the next year [28][31] - DashPass membership growth contributed significantly to order frequency, with more users ordering from new verticals [32][40] Market Data and Key Metrics Changes - The international business saw all-time high monthly active users (MAUs), driven by product improvements and the introduction of new categories [75][78] - The U.S. market continues to show resilience, with new customer cohorts growing and existing cohorts engaging more frequently [49][55] Company Strategy and Development Direction - The company is focused on enhancing product quality and user experience, which is seen as essential for long-term growth [11][50] - The acquisition of Symbiosis is aimed at scaling advertising opportunities while maintaining a best-in-class consumer experience [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing strength of new customer cohorts and the potential for further market expansion [49][52] - The company is committed to leveraging AI to improve operational efficiencies and user experience in the coming months [20][24] Other Important Information - The company is investing in automation and efficiency improvements across various business functions to drive long-term profitability [68][70] - The integration of Seven Rooms is expected to enhance the company's B2B offerings, although its immediate financial impact will be minimal [90][92] Q&A Session Summary Question: What drove the strength in DashPass membership growth? - Management highlighted that improvements in product quality and user experience have been key drivers of DashPass growth, with more users engaging with the platform [40][41] Question: How is the advertising revenue scaling post-Symbiosis acquisition? - Management noted that the advertising business is progressing healthily, with a focus on consumer experience and effective return on ad spend [12][15] Question: What role will AI play in future operations? - Management discussed plans to leverage AI for enhancing user experience and operational efficiencies, particularly in coding and repetitive tasks [20][24] Question: How are new verticals contributing to customer growth? - New verticals are growing rapidly, with increased engagement from both new and existing cohorts, indicating strong underlying demand [28][30] Question: What is the outlook for the retail business? - Management indicated that the retail segment is still in its early stages but is growing rapidly, with significant potential for future development [113][114]

Financial Data and Key Metrics Changes - Revenue for Q3 was $1,140 million, up 3.5% year-over-year in pro forma constant currency, exceeding guidance midpoint [5][22] - Non-GAAP diluted earnings per share was $1.72, slightly above expectations, while GAAP diluted EPS was $1.39, also above guidance [6][24] - Profitability improved with non-GAAP operating margin at 21.4%, up 280 basis points year-over-year [24] Business Line Data and Key Metrics Changes - Managed services revenue reached a record $771 million, up 4.1% year-over-year, accounting for approximately two-thirds of total revenue [25] - Cloud services are expected to achieve double-digit revenue growth in fiscal 2025, driven by strong sales momentum [13][29] Market Data and Key Metrics Changes - North America revenue improved by 1% sequentially, while Europe experienced nearly 8% year-over-year growth, driven by new deal activities [22] - Southeast Asia growth was partially offset by weakness in Latin America, indicating mixed trends across regions [23] Company Strategy and Development Direction - The company is focusing on cloud migration, generative AI, and data services as key growth pillars, with a unique tech-led business model [10][14] - Amdocs aims to enhance customer experience and operational efficiency through digital transformation projects and managed services engagements [17][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the healthy pipeline of opportunities, despite monitoring the uncertain global macroeconomic environment [19][20] - The company expects revenue growth of approximately 2.9% in pro forma constant currency for fiscal 2025, reflecting improved guidance [20][30] Other Important Information - The twelve-month backlog was $4,150 million, up 3% year-over-year, indicating strong future revenue visibility [29] - The company repurchased $135 million of shares and paid $59 million in cash dividends during the quarter [28] Q&A Session Summary Question: About the British Telecom win and its potential size - The deal is significant and modernizes the commerce domain of Everything Everywhere, which was previously a legacy platform [38][39] Question: Progress on AI and POCs - Four customers converted from POCs to actual deals this quarter, indicating positive momentum in AI applications [42][43] Question: Backlog decrease and its implications - The slight sequential decrease in backlog is not concerning, as new significant deals like BT are being signed [49][50] Question: SaaS products and their revenue contribution - SaaS products are growing double digits, with ConnectX and eSIM platforms gaining traction among customers [58][62] Question: Cloud migration status among customers - Many customers are in the early stages of cloud migration, with less than a handful having completed the process [63][64] Question: Sustainability of margin expansion - While the trajectory for margin expansion looks promising, management is cautious about making commitments for future years [66][67]

Financial Data and Key Metrics Changes - Net sales grew 20% year over year to $12 million in Q2, driven by a 47% increase in the wholesale channel, which now represents nearly half of total net sales [5][10] - Gross margin was 39.9%, slightly down from 41.8% in the prior year due to higher trade spend and commodity costs, yet remains among the best in the industry [6][11] - Adjusted EBITDA was positive at $100,000 compared to a loss of $100,000 in the same quarter last year, indicating progress towards profitability [12] Business Line Data and Key Metrics Changes - Coffee creamers led growth with a 44% increase, making up 56% of gross sales, reflecting consumer demand for plant-based options [5][10] - Coffee, tea, and hot chocolate products also grew by 44%, aligning with the company's strategy to become a leader in functional coffee solutions [6] Market Data and Key Metrics Changes - E-commerce sales increased by 2% year over year, contributing 52% of total net sales, primarily driven by Amazon [10][11] - The wholesale channel's growth was attributed to distribution expansion and increased velocity in grocery and club stores [10][11] Company Strategy and Development Direction - The company is focusing on growing its wholesale channel to become the largest segment of its business, with a strategic emphasis on brand building, innovation, and operational efficiency [5][9] - Plans to introduce new products, including a super optimized liquid creamer and a protein-based coffee product, are underway, indicating a commitment to innovation [36][39] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the second half of the year, despite ongoing economic pressures and tariff uncertainties, highlighting the company's resilience and strong brand appeal [9][17] - The company reaffirmed its full-year net sales growth guidance of 20% to 25% and aims to maintain gross margins while achieving breakeven adjusted EBITDA [15][17] Other Important Information - The company ended the quarter with $4.2 million in cash and no debt, indicating a solid balance sheet [7][13] - Cash usage was primarily driven by inventory investments to meet demand and mitigate supply chain risks, with expectations to normalize in the coming quarters [7][14] Q&A Session Summary Question: Revenue guidance for the year and confidence in achieving it - Management noted that previous out-of-stock issues and a cyber attack impacted sales, but they do not anticipate similar events in the second half, supporting their revenue guidance [20][22] Question: Impact of the cyber attack and liquid product transition - The cyber attack is estimated to have cost around $100,000 in sales, while the transition to a new liquid product size has been challenging but is now showing positive results [26][27][29] Question: Innovation focus for the back half of the year - The company is excited about new product innovations, including a new liquid creamer formula and a protein-based coffee product, which are expected to differentiate them in the market [35][39] Question: Performance during Amazon Prime Day and customer acquisition metrics - Amazon Prime Day went as planned, with strong initial sales, although e-commerce growth is slowing, reflecting broader trends in the industry [46][52] Question: Plans for increasing trade promotion - Management is considering increasing trade promotions in response to consumer price sensitivity but has not yet made decisions, focusing on maintaining gross margins [54][56]

Financial Data and Key Metrics Changes - Net revenue for Q2 2025 was $75 million, down 19.6% from $93.2 million in the same period last year, primarily due to an 18.9% decrease in volume sold and a 0.9% decrease in net revenue per pound [25][26] - Gross margin decreased to 11.5% in Q2 2025 from 14.7% a year ago, impacted by reduced volume and unfavorable product mix [17][32] - Net loss for Q2 2025 was $33.2 million, or a loss of $0.43 per share, compared to a net loss of $34.5 million, or a loss of $0.53 per share, in the prior year [34] Business Line Data and Key Metrics Changes - U.S. Retail channel net revenues decreased 26.7% to $32.9 million, driven by a 24.2% decrease in volume sold and a 3.2% decrease in net revenue per pound [27] - U.S. Foodservice net revenues increased 6.8% to $11.1 million, primarily due to a 4.4% increase in net revenue per pound and a 2.3% increase in volume sold [30] - International Retail channel net revenues decreased 9.8% to $15.9 million, driven by a 13.1% decrease in volume sold, partially offset by a 3.9% increase in net revenue per pound [31] Market Data and Key Metrics Changes - The U.S. Retail channel faced significant challenges due to higher pricing compared to animal protein, negative narratives surrounding plant-based products, and reduced distribution points [12][13] - International Foodservice experienced a decline due to lapping significant promotional activity from the previous year and macroeconomic conditions affecting customer demand [16][60] Company Strategy and Development Direction - The company is focusing on a fundamental reset to stabilize the business and achieve EBITDA positive operations by 2026, including significant expense reductions and gross margin expansion [6][20] - Plans to deepen distribution of core products in U.S. Retail and reposition the brand to emphasize "Beyond" as the primary identifier, expanding beyond animal protein replication [9][10] - The appointment of an interim Chief Transformation Officer aims to enhance operational efficiency and reduce costs [6][79] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q2 results, citing ongoing softness in the plant-based meat category and the need for a reset [5][21] - The company believes current challenges are transient and anticipates that consumer trends will eventually shift back in favor of plant-based products [22][63] - Future product offerings, such as Beyond Ground, are expected to capture consumer interest by emphasizing nutritional benefits rather than replicating animal protein [50][65] Other Important Information - Adjusted EBITDA loss was $26 million, or -34.7% of net revenues, compared to a loss of $23 million, or -24.7% of net revenues, in the prior year [35] - Cash and cash equivalents were $117.3 million, with total outstanding debt of approximately $1.2 billion as of June 28, 2025 [35] Q&A Session Summary Question: What measures will be taken to scale up the top line while reducing expenses? - Management highlighted the need to stabilize the U.S. Retail business and build brand blocks in key retailers to improve distribution and sales velocity [42][49] Question: What has changed in the international foodservice channel? - Management noted a softening in the international foodservice sector due to macroeconomic conditions and shifting animal protein prices, affecting customer menus [59][60] Question: How will the company address the issue of lapsed consumers? - Management emphasized the importance of stabilizing the business and addressing misinformation while focusing on the nutritional benefits of their products to attract flexitarian consumers [61][63]

Financial Data and Key Metrics Changes - The company reported revenue of $19.6 million for the third fiscal quarter of 2025, representing a 26% increase over the prior quarter, but a 27% decrease compared to the same period last year [5][12] - Adjusted EBITDA was $2.2 million, benefiting from a nonrecurring employee retention credit, while normalized gross margin improved to 41.5% from 36.5% in the previous year [5][13] - GAAP net income for the quarter was $100,000 or $0.01 per share, compared to a net loss of $31.8 million or $2.23 per share in the preceding quarter [14] Business Line Data and Key Metrics Changes - The Thermal Processing Solutions segment saw significant growth, particularly in AI-related equipment, which accounted for about 25% of its revenue, with a fivefold increase in revenue from AI equipment year-over-year [6][7] - The Semiconductor Fabrication Solutions segment experienced weak demand for front-end equipment tied to mature node applications, although performance modestly exceeded expectations due to improved demand for consumables [8][9] Market Data and Key Metrics Changes - Revenue growth was primarily driven by strong demand in Asia for reflow ovens used in AI applications, while the mature node semiconductor market continued to show weakness [12] - The company expects continued strength in AI-related equipment sales to partially offset the softness in mature node product lines in the upcoming quarter [15][16] Company Strategy and Development Direction - The company is focused on expanding recurring revenue streams while capitalizing on opportunities in AI infrastructure, with ongoing investments in next-generation semiconductor packaging equipment [7][10] - Structural changes have been made to improve operating leverage, including consolidating manufacturing sites and optimizing the operating model, which are expected to enhance profitability [10][16] Management's Comments on Operating Environment and Future Outlook - Management noted that the near-term environment remains dynamic, with strong demand for AI-related products but weak demand for mature node products [10] - The company anticipates improved operating leverage and adjusted EBITDA margins in the mid-single digits due to previously implemented cost reductions [16] Other Important Information - The company has achieved $13 million in annualized savings through cost reduction initiatives over the past eighteen months [10] - Unrestricted cash and cash equivalents increased to $15.6 million as of June 30, 2025, compared to $11.1 million at the end of the previous fiscal year [15] Q&A Session Summary Question: No questions were raised during the Q&A session - There were no questions from participants during the call, and the session concluded without any inquiries [18]