Financial Data and Key Metrics Changes - The company reported a strong revenue growth of 5% in Q2 2025, up from 4% in Q1 2025, with total revenue reaching $2.6 billion [8][18] - Adjusted EBITDA also grew by 5%, exceeding expectations, with margins improving by 200 basis points sequentially [18][24] - Adjusted EPS was $1.36, meeting expectations, while free cash flow was $292 million with a cash conversion rate of 52% [19][20] Business Line Data and Key Metrics Changes - Banking revenue grew by 6% in Q2, driven by improved commercial excellence and strong client retention [24] - Capital Markets adjusted revenue growth was 5%, slightly below expectations, impacted by a temporary slowdown in lending activity due to macroeconomic uncertainty [26][68] - Recurring revenue growth was strong at 7%, while nonrecurring revenue increased by 5%, reflecting growth in license revenue [25] Market Data and Key Metrics Changes - The company secured a major consolidation win with two Northeast financial institutions, forming a $25 billion regional banking leader [10] - Digital solutions saw double-digit ACV growth, with significant new engagements from top U.S. banks [10][12] - The company expanded its relationship with a leading financial services technology company through a multiyear commitment [12] Company Strategy and Development Direction - The company is focused on client centricity, operational simplification, and innovation, aiming to create greater value for shareholders and clients [7] - The strategic acquisition of Global Payments Issuer Business and the sale of the minority Worldpay stake align with the operational simplification strategy [8][9] - The company is actively pursuing M&A opportunities to enhance its product offerings and expand its international footprint [15][105] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving increased full-year outlook due to strong first-half results and a robust implementation pipeline [9][34] - The company anticipates a return to margin expansion in the third quarter, with further improvements expected in the fourth quarter [25][33] - Management noted that client interest in digital currencies and AI is increasing, presenting opportunities for the company [49][50] Other Important Information - The company returned $460 million to shareholders in Q2 through share repurchases and dividends, reaffirming its $1.2 billion annual target for share repurchases [9][24] - Capital expenditures were $218 million in the quarter, representing 8% of revenue, in line with expectations [20] Q&A Session Summary Question: Key drivers of banking segment growth and sustainability - Management highlighted net new sales and high client retention as key drivers of recurring growth in banking, with a focus on selling higher-margin products [38][40] Question: Changes in client decision-making due to macroeconomic factors - Management noted increased client interest in digital currencies and AI, with financial institutions eager to enhance their offerings [49][50] Question: Organic growth in Worldpay and its drivers - Management indicated that Worldpay's growth was supported by new e-commerce clients and seasonal tax processing payments [54][55] Question: Margin expectations and bad debt impact - Management quantified the bad debt charge at approximately $8 million, impacting margins, but expressed confidence in margin recovery in Q4 [60][63] Question: Visibility on capital markets growth and loan syndication activity - Management reported a rebound in loan syndication activity in July, providing confidence for capital markets growth in the second half [68][69] Question: Revenue drivers in capital markets - Management clarified that revenue growth is primarily driven by net new sales and consistent net pricing, with minimal impact from AUM or transaction activity [110]

Financial Data and Key Metrics Changes - GF reported second quarter revenue of $1,688 million, a 6% increase quarter-over-quarter and a 3% increase year-over-year [32] - Adjusted free cash flow for the quarter was $277 million, representing a margin of over 16% [37] - Gross profit was $425 million, translating to a gross margin of approximately 25.2% [35] - Net income for the second quarter was $234 million, an increase of approximately $23 million from the previous year [36] Business Line Data and Key Metrics Changes - Automotive revenue grew over 36% year-over-year, comprising nearly 22% of total revenue [19][34] - Smart mobile devices represented approximately 40% of total revenue, with a year-over-year decline of about 10% [34] - Communications infrastructure and data center revenue increased approximately 11% year-over-year, representing about 10% of total revenue [34] Market Data and Key Metrics Changes - Automotive and communications infrastructure and data center markets demonstrated double-digit percentage year-over-year revenue growth for the third consecutive quarter [7][28] - Smart mobile devices and home and industrial IoT markets experienced slower recovery due to geopolitical uncertainties impacting consumer demand [8][22] - The IoT market saw revenue growth year-over-year for the second consecutive quarter, with design wins in Wi-Fi and Bluetooth technologies [25][27] Company Strategy and Development Direction - GF is focusing on geographic diversification to mitigate risks associated with global trade tensions and tariffs [11][12] - The company is enhancing its manufacturing capacity in the U.S. and Europe to support domestic supply and meet customer demand [12][13] - GF announced the acquisition of MIPS to strengthen its capabilities in AI and processor IP, which is expected to enhance customer collaboration and customization [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that some customers took on additional inventory in anticipation of tariff impacts, which may affect demand in the second half of the year [11] - The company remains optimistic about growth in high-margin end markets, particularly automotive and communications infrastructure [46] - Management expects to generate over $1 billion in adjusted free cash flow for 2025, despite market uncertainties [41] Other Important Information - The company is actively managing supply chain cost impacts associated with tariff uncertainties, estimating limited impacts of around $20 million for 2025 [38] - GF's diversified product portfolio and focus on critical performance and connectivity are driving market share gains [10][14] Q&A Session Summary Question: What types of headwinds are being seen for Q3? - Management expects solid growth in automotive and communications infrastructure but anticipates declines in smart mobile and IoT due to inventory management [45][46] Question: Can you elaborate on the China for China strategy? - The strategy focuses on localizing manufacturing for automotive applications, with significant interest from both international and Chinese customers [48][51] Question: What were utilizations in Q2 and outlook for the second half? - Utilization was in the low 80s in Q2, with expectations to progress further into the low to mid-80s in the second half [56][57] Question: Can you comment on inventory levels at customers? - Inventory levels have been normalizing, with some customers indicating potential tightness that could lead to demand spikes [66][70] Question: What is the strategic importance of the MIPS acquisition? - The acquisition is expected to add $50 million to $100 million in top-line revenue and enhance GF's differentiation in the AI space [71][76]

Financial Data and Key Metrics Changes - Revenue for the second quarter was $20 million, a decrease of 4% compared to the prior quarter but an increase of 75% year-over-year due to higher product volume [23] - GAAP gross loss was $3.9 million, or 19.6% of revenue, compared to a gross loss of $3.4 million, or 16.6% of revenue in the prior quarter [23] - GAAP net loss was $15.4 million, or $1.18 per diluted share, compared to a loss of $3.8 million, or $0.58 per diluted share in the prior quarter [25] - Adjusted EBITDA loss was $10.4 million, at the top end of the guidance range, driven by lower operating expenses [25] Business Line Data and Key Metrics Changes - The company reported a non-GAAP gross loss of $3.5 million, or 17.4% of revenue, which included a $4 million accrual related to a joint venture facility [24] - Operating expenses were $7.6 million on a GAAP basis, with non-GAAP operating expenses at $6.5 million, marking the lowest level since 2020 [24] Market Data and Key Metrics Changes - The company noted a slow decision-making process among customers due to regulatory uncertainties, impacting project planning [12] - There is optimism for a significant ramp in revenue in the fourth quarter, despite current market uncertainties [27] Company Strategy and Development Direction - The company aims to position itself as a leading single access tracker provider, emphasizing faster installation times and lower capital expenditures for customers [6][8] - A $75 million financing facility was secured to support growth and enhance the balance sheet, which is expected to open new business opportunities [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future bookings and the potential for acceleration in project decisions once regulatory clarity is achieved [34] - The company is well-positioned for growth in 2026, with foundational pieces in place, including a strong balance sheet and a robust product offering [38] Other Important Information - The company has made significant advancements in its product offerings, including features for high wind zones and enhanced hail solutions [14][15] - The introduction of a new tracker designed for 2,000 volt systems is expected to reduce operational costs and increase power capacity [16] Q&A Session Summary Question: Outlook for bookings amid regulatory uncertainty - Management indicated that the transition to a 1P marketplace is ongoing, and while some peers are more established, FTC is making progress in positioning itself for success [31] Question: Timing for acceleration of bookings - Management is optimistic about bookings accelerating significantly, particularly as regulatory uncertainties are resolved [34] Question: Voice of smaller IPPs and EPCs regarding project financing - Confidence in moving projects forward comes from close collaboration with smaller project developers, despite challenges in securing financing [42] Question: Clarification on the $4 million charge - The $4 million charge was related to minimum purchase commitments with a joint venture partner, not directly tied to new regulations [45] Question: Rationale behind the recent capital raise - The capital raise was seen as opportunistic, providing a strong partnership with Clean Hill and enhancing the company's balance sheet to support future growth [49]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 increased by 2% to $1.8 million, driven by increased usage in international markets and positive foreign exchange impacts, partially offset by decreased revenue from Russia and European distributors [23][24] - Gross profit decreased by $18,000 or 5.7% to $313,000, with gross margin decreasing to 17.6% from 19% in the same period of 2024 [25] - Total operating expenses increased by $4.7 million or 55% to $13.3 million, primarily due to headcount-related expenses and occupancy costs associated with establishing a U.S. headquarters [26] - Net loss totaled $13.2 million or $0.26 per share, compared to a net loss of $7.9 million or $0.22 per share in Q2 2024 [27] Business Line Data and Key Metrics Changes - The company did not recognize U.S. commercial revenue in Q2 2025 due to FDA approval occurring in the last week of the quarter, but has begun recognizing U.S. sales in Q3 [24] - Over 60,000 implants have been sold globally, reinforcing the company's expertise and commercial infrastructure [24] Market Data and Key Metrics Changes - The carotid intervention market is seeing a shift, with stenting becoming the emerging go-to treatment, supported by a CMS shift in 2023 [9] - Approximately 60,000 annual procedures are performed by 4,000 physicians in the U.S., with a trend towards an endovascular-first mindset [42][46] Company Strategy and Development Direction - The company aims to lead the U.S. carotid interventional market with the CGuard Prime Carotid Stent System, focusing on transforming the carotid intervention market and improving patient outcomes [7][9] - The company is executing a methodical launch strategy, building a strong commercial team and infrastructure to support growth [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to scale U.S. commercial operations effectively and deliver meaningful growth and value over the coming quarters [21] - The company acknowledges that strong adoption will take time and emphasizes the importance of laying a solid foundation for future expansion [28] Other Important Information - The company raised $40.1 million through a securities purchase agreement and $17.9 million from warrant exercises, significantly strengthening its cash position [20][21] - The company is advancing its clinical pipeline, including pivotal studies in TCAR and exploring new market opportunities in acute stroke care [14][19] Q&A Session Summary Question: Progress with U.S. account openings since FDA approval - Management reported strong early reception with procedures conducted with double-digit physicians and initial stocking orders secured [33][36] Question: Change in expected timelines for TCAR device clearance - Management clarified that the timeline adjustment reflects a broader window for clearance to accommodate uncertainties in product development and regulatory processes [39] Question: Account metrics and targeting strategy - The company is targeting high-volume physicians and accounts, tracking metrics such as revenue and physician engagement in the sales funnel [42][44] Question: Trends in the carotid intervention market - Management noted a shift towards stenting, with expectations of reaching a 50/50 split between surgical and stent-based procedures in the near future [46]

Financial Data and Key Metrics Changes - Total revenue for the second quarter was $38.1 million, an 18% year-over-year increase on an adjusted pro forma basis [7][25] - Revenue from the NeuroStar business was $15.1 million, with U.S. treatment session revenue increasing by 13% on a pro forma basis [7][27] - Gross margin decreased to 46.6% compared to 74% in the prior year quarter, primarily due to the inclusion of Green Brook's lower-margin clinic business [28] - Net loss for the quarter was $9.8 million, or $0.15 per share, compared to a net loss of $9.8 million, or $0.33 per share, in the prior year quarter [29] Business Line Data and Key Metrics Changes - NeuroStar system revenue was $3.5 million with 41 systems shipped, demonstrating a strong average selling price [27] - U.S. clinic revenue reached $23 million, marking the strongest quarterly performance for Green Brook [28] - The Better Me Provider (BMP) program has 395 active sites, treating three times more patients per site compared to non-BMP practices [13][14] Market Data and Key Metrics Changes - The company has seen a 25% growth in adolescent new patient starts in 2025 compared to 2024, driven by increased insurance coverage [20] - The publication of clinical data in a reputable journal highlighted the effectiveness of the NeuroStar TMS system in adolescents, with nearly 70% experiencing clinically meaningful improvement [21] Company Strategy and Development Direction - The company is focusing on three strategic priorities: executing the Green Brook growth strategy, scaling the BMP program, and improving operational efficiencies [8][9] - The Green Brook growth strategy has exceeded expectations, with improved patient conversion rates through enhanced patient connection capabilities [10] - The company is taking a thoughtful approach to expanding the buy and bill model for SPRAVATO, focusing on opportunities that deliver good margins [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash flow positivity by the end of 2025, supported by operational improvements and strategic initiatives [35] - The integration of Neuronetics and Green Brook is creating significant value, positioning the company for sustainable growth and profitability [36] Other Important Information - Cash used in operations for the second quarter was $3.5 million, better than the previously guided target of under $5 million [31] - The company has received additional funding under its existing debt agreement, enhancing financial flexibility [30] Q&A Session Summary Question: Dynamics of traditional NeuroStar business vs. Green Brook - Management indicated that the shift in strategy towards provider connections is expected to improve conversion rates over time, despite a slower growth in traditional NeuroStar business [40][42] Question: Impact of marketing strategy on long-term spending - The new strategy is anticipated to make marketing dollars more efficient, potentially lowering overall marketing spend while still requiring some investment in educational efforts [43][44] Question: Resubmitted claims and reimbursement timing - Management is focused on improving revenue cycle management and expects to see a tailwind from catching up on aged claims while enhancing the efficiency of new claims [46][48] Question: Clinical sales per site and long-term expectations - Management did not provide a specific target for clinical sales per site but indicated that revenue trends and site performance would continue to improve [53][55] Question: Marketing strategy for adolescent patients - The company is targeting providers who care for adolescent patients through the Provider Connection program, which has shown positive results in driving awareness and adoption [59]

Financial Data and Key Metrics Changes - Q2 revenue increased 23% year over year to $163 million, driven by significant market share gains in the custom manufacturing market [7][21] - Marketplace gross margin reached a record 35.4%, up 190 basis points year over year, contributing to an overall company gross margin of 40.1% [8][24] - Adjusted EBITDA improved to $3.9 million, a $6.6 million increase year over year [9][27] - Cash and cash equivalents decreased to $226 million, down approximately $5 million from Q1 2025, primarily due to capital expenditures [28][29] Business Line Data and Key Metrics Changes - Q2 marketplace revenue was $148 million, a 26% year-over-year increase, while supplier services revenue was $14.3 million, down approximately 2% quarter over quarter [22][24] - Active buyers increased 22% year over year to 74,777, with a net addition of 3,323 active buyers [22] - Marketplace revenue per active buyer increased 4% year over year, primarily due to strong enterprise growth in the U.S. [22] Market Data and Key Metrics Changes - U.S. marketplace revenue increased 25% year over year, while international revenue growth accelerated to 31% year over year [22][23] - The number of accounts with at least $50,000 in last twelve months spend increased 15% year over year to 1,653 [23] Company Strategy and Development Direction - The company is focusing on embedding technology and AI across its operations to enhance its position in the custom manufacturing market [11][15] - The strategy includes expanding enterprise sales and marketing efforts, with a focus on large accounts that can generate significant annual revenue [15][20] - The company is raising its 2025 revenue growth outlook to at least 20%, driven by robust demand and strong execution [20][32] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the macro environment but is optimistic about the company's growth trajectory due to strong marketplace performance [41][52] - The company expects Q3 revenue in the range of $167 to $169 million, representing 18% to 19% growth year over year [30][32] - For the full year 2025, the company expects incremental adjusted EBITDA margin of approximately 21% [33] Other Important Information - The company completed a convertible debt refinancing, raising $250 million in new convertible notes, which improves its balance sheet and financial flexibility [29] - The company is focused on improving working capital efficiency and cash flow conversion given its asset-light model [28] Q&A Session Summary Question: Impact of product initiatives on the business - Management highlighted the acceleration of technology and AI deployment to improve buyer and supplier experiences, with several product rollouts planned for the second half of the year [39] Question: Insights on manufacturing trends and guidance - Management acknowledged strong trends in Q2 but remained cautious about the macro environment, indicating that guidance reflects current market conditions [41][52] Question: Gross margin dynamics and future expectations - Management confirmed that Q2 gross margin was a record 35.4%, driven by AI improvements, and expects continued year-over-year improvements in Q3 [46][48] Question: Potential for growth in a better macro environment - Management indicated that while they are gaining market share, a macro turnaround could provide additional growth opportunities [51] Question: Pricing environment and adjustments - Management explained that pricing adjustments are made in response to changes in tariffs and costs, ensuring flexibility in sourcing options for customers [64] Question: Sales and marketing efficiency - Management noted a normalization in marketing spend and continued leverage in sales and marketing investments, contributing to strong account growth [71][73]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1.6 billion, down 1% at constant currency, primarily due to the loss of exclusivity of Adazet in the EU [5][20] - Adjusted EBITDA for the quarter was $522 million, representing a 32.7% margin, with year-to-date adjusted EBITDA at $1 billion or 32.4% margin [5][6] - The company is raising its revenue guidance by $100 million at the midpoint for the full year based on year-to-date performance and foreign currency movements [5][33] Business Line Data and Key Metrics Changes - Women's health franchise grew 2% at constant currency, with the fertility business growing 15% in Q2 2025 [7][8] - Sales of Nexplanon declined 1% at constant currency in Q2, with a 5% decline in the U.S. but a 10% growth outside the U.S. [10][11] - Biosimilars, particularly HEDLEMA, performed better than expected, generating nearly $100 million, up 68% year-over-year [12][13] Market Data and Key Metrics Changes - The U.S. market for Nexplanon is facing funding constraints from federal and state programs, impacting purchasing decisions [10][11] - Pricing pressure was noted primarily from the loss of exclusivity of Adazet and certain mature products in the U.S. [21][22] - Volume increased by $90 million in Q2, representing a growth of about 5.6%, driven by fertility, HEDLEMA, Emgality, and VITAMMA [22] Company Strategy and Development Direction - The company is focused on reducing its debt burden, having repaid approximately $350 million of long-term debt in Q2 [6][31] - Aiming for a net leverage ratio below four times by year-end and further improvements to 3.5 times or below by 2026 [6][31] - The company is committed to building Nexplanon into a billion-dollar franchise and expanding its market presence [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving free cash flow of over $900 million before one-time costs in 2025 [6][41] - The company is optimistic about the growth potential of VITAMMA and expects to achieve significant access improvements by early 2026 [15][18] - Management acknowledged challenges in the U.S. market due to federal funding issues but remains confident in Nexplanon's long-term growth potential [11][53] Other Important Information - The company expects to see a modest decline in adjusted gross margin in the second half of the year but aims to land closer to the high end of the 60% to 61% range [36][39] - One-time costs related to restructuring are expected to decline, improving free cash flow conversion in the coming years [60][61] Q&A Session Summary Question: Can you talk about incremental sales and marketing investment for VITAMMA? - The company has started new telehealth and DTC campaigns and added more sales representatives, totaling over 125 in the field [44][45] Question: Can you elaborate on the federal funding headwinds for Nexplanon? - The decline in U.S. Nexplanon sales is attributed to both purchase timing and underlying pressures, with confidence in growth despite market confusion [48][52] Question: What is the expected impact of tariffs on margins in 2026? - It is too early to speculate on tariff impacts for 2026, but the EU is the largest import exposure for the company [56][57] Question: How should we think about free cash flow conversion and one-time items? - Free cash flow should grow in line with the business, with a continued reduction in one-time costs expected [60][61] Question: What is the status of the 6219 endometriosis program? - The company has decided to discontinue the program due to lack of efficacy signals [80][82] Question: Will the FDA update the guidance for generics regarding Nexplanon? - The company is working closely with the FDA for the new labeling for the five-year indication, but the FDA will make its own assessment [82][86]

Financial Data and Key Metrics Changes - The company raised approximately $70 million in July, bringing the total raised in 2025 to nearly $160 million, enhancing operational agility and capital efficiency [30][31] - The guidance for net cash used in operating activities remains unchanged at $110 million to $125 million, with cash and cash equivalents approximately $139 million as of the call date [32] Business Line Data and Key Metrics Changes - The company is on track to complete the assembly of its third and final v x four prototype and fly it before the end of the year, doubling flight test capacity [5][6] - The battery technology is expected to generate over 50% of revenue within five to seven years after entering service, with a margin of around 40% [10][44] Market Data and Key Metrics Changes - The European defense tech market is projected to grow significantly, with NATO members increasing defense spending from approximately $300 billion to $1 trillion over the next seven to ten years [15][16] - The company is uniquely positioned as the only European eVTOL contender to capture this growing market opportunity [16] Company Strategy and Development Direction - The company aims to achieve certification for the v x four by 2028, with a focus on executing its strategic objectives and enhancing its operating model [7][29] - A partnership with Bristow has been established to accelerate global eVTOL adoption, providing a ready-to-fly model that reduces barriers to entry for customers [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full transition flight tests by the end of the year, with engineering progress going well [40][42] - The company is optimistic about the defense market opportunities, especially following successful demonstrations at military air shows [38][78] Other Important Information - The company has expanded its leadership team, appointing experienced individuals to key positions to drive engineering and operational excellence [27][28] - A capital markets event is scheduled for September 17, where the company will provide updates on financials, certification costs, and manufacturing plans [34][101] Q&A Session Summary Question: Can you provide insights on defense missions or use cases? - Management highlighted the military's excitement about the aircraft's capabilities, including silent takeoff and landing, and the potential for logistics and troop transport [36][38] Question: How is the full transition pilot test progressing? - Management confirmed they are on track for full transition in Q4, with significant data being gathered to support regulatory approval [40][42] Question: Will there be updates on financials at the Investor Day? - Management indicated that updates on hybrid opportunities, battery revenue, and certification costs will be provided during the event [44][46] Question: What is the status of the aircraft build and supply chain? - Management confirmed that significant contracts have been secured, including a billion-dollar deal with Honeywell, and that the supply chain is being locked in for certification aircraft [55][56] Question: How does the hybrid powertrain fit into the market strategy? - Management explained that the hybrid variant complements the fully electric model, targeting both military and commercial markets, with a focus on logistics and medevac missions [84][90]

Financial Data and Key Metrics Changes - In Q3 2025, total revenue was $144 million, flat year over year on a reported basis and down 2% on an organic basis [17][19] - Adjusted EBITDA margin expanded by approximately 260 basis points year over year to 12.3%, reflecting operational turnaround efforts [9][18] - Free cash flow for the quarter was $15 million, driven primarily by improved working capital [18] Business Line Data and Key Metrics Changes - Sample Management Solutions (SMS) revenue was $78 million, down 4% year over year on a reported basis and down 6% on an organic basis, primarily due to softer bookings and timing delays [20] - Multiomics segment delivered revenue of $66 million, up 4% on a reported basis and up 3% on an organic basis, driven by growth in next-generation sequencing [21][22] - Non-GAAP gross margin for SMS was 53.6%, up 760 basis points year over year, while Multiomics gross margin was 42.6%, down approximately 500 basis points year over year [20][23] Market Data and Key Metrics Changes - China posted 10% organic growth in the Multiomics segment despite macro and geopolitical headwinds [22] - The company anticipates a 1% headwind to full year 2025 revenue due to reductions in NIH funding levels [10][90] Company Strategy and Development Direction - The company is focused on long-term value creation and operational turnaround, with key growth priorities including strengthening commercial excellence and investing in R&D [6][7] - The Azenta Business System (ABS) is being leveraged to enhance operational efficiency and drive growth [8][68] - The company plans to prioritize investments in gross margin productivity, organic growth offerings, and strategic M&A opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management remains committed to full year 2025 guidance of organic revenue growth between 3% to 5% and adjusted EBITDA margin expansion of 300 basis points [9][25] - The company is optimistic about capitalizing on opportunities arising from the current dynamic environment [11] - Management noted that the operational improvements have allowed them to reaffirm guidance despite external challenges [11] Other Important Information - The company ended the quarter with $550 million in cash and no outstanding debt, positioning it well for future investments [12][24] - An Investor Day is planned for later in the calendar year to discuss achievements and outlook [13] Q&A Session Summary Question: Guidance for fiscal 2025 and thoughts on fiscal 2026 - Management indicated confidence in a step-up in Q4 due to momentum in NGS and sufficient backlog, with a commitment to 5% to 8% CAGR for fiscal 2026 [29][34] Question: Weakness in SMS core products - Management clarified that there are no cancellations, but orders are being pushed out due to capital equipment purchase delays [35][36] Question: Gene synthesis headwinds - Management noted softness in gene synthesis from pharma accounts but expects improvements in Q4 [39][40] Question: Q4 revenue expectations - Management highlighted a seasonal step-up from Q3 to Q4 and strong funnel visibility, indicating confidence in achieving revenue targets [44][46] Question: Leadership changes impact - Management discussed new commercial leadership in North America and positive early signs from the regional model [48][50] Question: M&A funnel focus - Management emphasized a disciplined approach to M&A, focusing on core biorepositories and multiomics opportunities [52][54] Question: NIH funding headwinds - Management maintained a consistent view on NIH funding as a 1% headwind but expressed optimism about potential increases in funding [89][90]

Financial Data and Key Metrics Changes - The company reported record quarterly revenues of $318 million, an increase of $39 million or 14% year-over-year, driven by higher product uptake from existing clients and new client spending [20][21] - Adjusted EBITDA for the quarter was $64 million, increasing 31% year-over-year, with an adjusted EBITDA margin expanding approximately 250 basis points to 20.1% [24][28] - The company generated a profit of $49 million compared to a loss of $1.5 million in the same period last year, aided by an unrealized foreign currency gain of $54 million [28] Business Line Data and Key Metrics Changes - Betting technology and solutions revenue grew 12% year-over-year to $259 million, driven by a 10% increase in betting and gaming content [21] - Managed Betting Services revenue increased by 21% year-on-year, reflecting strong momentum in Managed Trading Services [22] - Sports content technology and services revenue rose 22% year-on-year to $59 million, with significant contributions from marketing and media services [22] Market Data and Key Metrics Changes - U.S. revenue grew by 30%, while revenue from the rest of the world increased by 9% in the second quarter [23] - The U.S. sports betting market has expanded significantly since legislation in 2018, growing from approximately $300 million in GGR to nearly $14 billion last year [9] Company Strategy and Development Direction - The company aims to capitalize on the rapid expansion of the global sports betting market, focusing on increasing product penetration and innovation [7][8] - Plans to expand into adjacent markets leveraging existing capabilities and expertise are underway, with a focus on enhancing client relationships [8][18] - The company is committed to investing in innovation and technology, including AI capabilities, to drive growth efficiently [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong operating momentum for the remainder of the year and raised the full-year revenue outlook to at least $1.278 billion, representing year-over-year growth of at least 16% [31][33] - The company anticipates adjusted EBITDA of at least €284 million, reflecting growth of at least 28% versus 2024 [31][33] - Management highlighted the importance of maintaining discipline in rights acquisitions and emphasized the strong growth potential in the U.S. and international markets [66][68] Other Important Information - The company is in the process of acquiring IMG Arena's portfolio, which is expected to enhance its content offerings in key sports [14][33] - The company has repurchased approximately $86 million of stock as part of its share repurchase program, indicating confidence in its growth prospects [30] Q&A Session Summary Question: Insights on the Club World Cup's impact on betting - Management noted that the World Cup was beneficial for Managed Trading Services, with increased interest from media companies driving traffic from betting [36][37] Question: Clarification on European league rights and IMG acquisition - Management confirmed that European league rights were not included in the IMG acquisition due to their loss-making nature and lack of audiovisual inventory [38][40] Question: Impact of new NTS customers on Managed Betting Services - Management indicated that the onboarding of 50 new clients in 2024 has significantly contributed to the strong growth in Managed Trading Services [43][44] Question: Trends in the advertising business and organic growth rates - Management explained that fluctuations in advertising growth are due to timing around media campaigns, with expectations for continued momentum in the back half of the year [50][52] Question: U.S. gaming market health and trends - Management expressed caution in predicting Q3 trends but noted strong growth and adaptation in the U.S. market [95][96] Question: Future market opportunities and potential new markets - Management highlighted Brazil's growth potential and mentioned ongoing developments in Japan, India, and Thailand as key markets to watch [108][109]