Financial Data and Key Metrics Changes - The fourth quarter of 2025 was a record-setting quarter for the company, achieving all-time highs in revenue, RASK, EBITDA, and EBIT [4] - Revenue increased by 5% year-over-year to a record BRL 5 billion, with a record RASK of more than 46 cents [5] - Quarterly EBITDA reached BRL 2.1 billion with a margin of 36.9%, and EBIT was BRL 1.4 billion, reflecting strong profitability [6] Business Line Data and Key Metrics Changes - The contribution of high-margin business units to RASK grew from 15% in Q4 2019 to 21% in Q4 2025, indicating successful expansion beyond core ticket revenue [7] - The loyalty program, cargo business, and vacation business continued to grow at double digits, providing stable, recurring, high-margin revenue streams [8] Market Data and Key Metrics Changes - The company reported a 5.7% increase in productivity, while CASK remained flat despite a 4.3% inflation and a 1.5% increase in fuel prices [9] - The company has the lowest unit cost in the region, which is a significant competitive advantage [9] Company Strategy and Development Direction - The restructuring process was completed in record time, resulting in a much stronger balance sheet, reduced leverage, and enhanced cash generation capabilities [10] - The company aims for disciplined capacity growth and pricing flexibility, which are essential in the current oil environment [6][23] - The focus on high-quality revenue and strategic growth is designed to navigate the challenges posed by rising fuel prices [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current fuel price environment, citing a history of successfully recapturing costs [25] - The company is positioned to respond effectively to macroeconomic challenges, with a focus on maintaining a robust liquidity position [12] - Management emphasized the importance of proactive capacity management to maximize revenue recapture and protect margins [22] Other Important Information - The company reduced its debt, including lease liabilities, by $2.6 billion and achieved more than a 50% reduction in annual interest payments [10] - The company expects to receive only four E2 aircraft in 2026, which are already financed, allowing for flexibility in responding to market opportunities [19] Q&A Session Summary Question: How has fuel pass-through historically transpired? - Management noted that the industry has shown good urgency in responding to fuel price increases, with fare increases that have held, and they expect to recapture 60%-80% of costs over time [25][26] Question: What is the plan for capacity in the first half of the year? - The company plans to be slightly negative in the first half of the year and is considering capacity cuts to avoid flying marginal routes that do not make sense in a high-fuel environment [31][32] Question: How do the three big airlines in Brazil position themselves regarding capacity growth? - The company highlighted that Azul's capacity is down 1%, while competitors GOL and LATAM are increasing capacity, but emphasized the importance of maintaining a disciplined approach to revenue recapture [44][45]

Financial Data and Key Metrics Changes - The company recorded recurring consolidated EBITDA of $109 million in Q4 2025, and for the full year, it was $557 million, representing a 49% decrease compared to 2024 [10][22] - Operating cash generation was approximately $13 million in Q4, while operating cash consumption for the year was $246 million, reflecting lower EBITDA [11][12] - Corporate cash at the end of Q4 2025 totaled approximately $2.1 billion, with corporate leverage at approximately 14.74x [12][28] Business Line Data and Key Metrics Changes - In Brazil, recurring EBITDA for the segment was $698 million in 2025, a 22% decrease from 2024, primarily due to lower resin and chemical sales volumes and lower average spreads [17] - The U.S. and Europe segment posted a recurring EBITDA of negative $52 million for the year, impacted by lower polypropylene and polyethylene spreads [19] - In Mexico, polyethylene utilization in Q4 reached 85%, an increase of 38 percentage points from Q3, but the annual utilization was 64%, a 14 percentage point reduction compared to 2024 [20][21] Market Data and Key Metrics Changes - The global petrochemical industry faced a prolonged down cycle, with international petrochemical spreads below historical averages, leading to a decline in profitability and liquidity [7] - Domestic resin demand in Brazil declined by approximately 2% in 2025, following a 60% growth in 2024, as converters optimized inventory levels amid macroeconomic uncertainties [14] - Global operating rates for polyethylene and polypropylene reached historically low levels of 79% and 74%, respectively, due to reduced demand [29] Company Strategy and Development Direction - The company aims to reorganize its capital structure to ensure business continuity and maintain safety as a non-negotiable value [44][45] - Initiatives for resilience and financial soundness will focus on operational optimizations, strategic initiatives, and defending the Brazilian chemical industry [45][46] - The transformation plan includes expanding the gas and renewable base in the feedstock profile to enhance competitiveness and sustainability [46][50] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges of 2025, including geopolitical conflicts and tariff wars, which affected global supply and demand imbalances [53][54] - The company is monitoring geopolitical developments and their potential effects on costs and competitive dynamics while maintaining discipline in commercial and financial management [43] - Despite the instability, management sees potential value capture in certain regions, particularly in the Americas, due to the ongoing geopolitical situation [62] Other Important Information - The company has made significant progress in the Alagoas geological event, with a total provision of approximately BRL 18 billion, of which BRL 13.9 billion has been disbursed [25][59] - The company implemented over 70 action plans across various fronts to minimize the adverse effects of the downturn cycle and preserve liquidity [31] Q&A Session Summary Question: How has the global industry behaved in the current context? - Management noted that Asian petrochemical powers have lower naphtha inventories, and Braskem started the war with a larger supply of feedstock than competitors [68][69] Question: What are the expected effects of the war on EBITDA? - Management refrained from providing formal guidance but indicated that historical EBITDA trends could inform future expectations [66][80] Question: How is the company planning to finance its CapEx without affecting its capital structure? - Management confirmed that resources for essential projects have been earmarked and included in the capital structure reorganization plan [97] Question: What is the status of the anti-dumping process for polyethylene in Brazil? - Management stated that they will appeal a decision not to consider a detailed study recommending anti-dumping measures, believing the case is strong [88][89] Question: What is the likelihood of a change in control for the company? - Management clarified that Braskem is not part of the discussions regarding changes in control and will notify the market if material information arises [112][114]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $104 million, a significant decline from $267 million in Q4 2024, primarily due to a revenue reversal of $92 million related to legacy disputes [5][16] - Gross loss for Q4 2025 was $193 million, compared to a gross profit of $8 million in Q4 2024, driven by adverse legal rulings and legacy project adjustments [5][17] - Net loss attributable to stockholders was $216 million or $4 per share, compared to a loss of $4.2 million or $0.09 per share in the prior year [19][23] - Full year revenue for 2025 was $772 million, down 21% from $980 million in 2024, with a full year gross loss of $155 million compared to a gross loss of $63 million in 2024 [21][22] Business Line Data and Key Metrics Changes - The civil segment reported revenue of $58.4 million in Q4 2025, down from $103.8 million in Q4 2024, with a gross loss of $31.3 million compared to a gross profit of $8 million in the prior year [19][20] - The transportation segment had revenue of $45.6 million, a decrease of $117.9 million from the same period in 2024, with a gross loss of $162.1 million compared to a gross loss of $365,000 in the prior year [20][24] - For the full year, the civil segment had revenue of $342.3 million, slightly up from $323.3 million in 2024, while the transportation segment revenue dropped to $429.8 million from $656.9 million in 2024 [23][24] Market Data and Key Metrics Changes - The company ended 2025 with a backlog of just over $2 billion, with expectations to burn approximately 38% of this backlog in 2026 [25] - The Infrastructure Investment and Jobs Act is driving robust multiyear demand for specialized infrastructure services, particularly in the public sector [12][14] Company Strategy and Development Direction - The company is focused on closing out legacy projects and optimizing its asset base, including the sale of non-core assets to strengthen its balance sheet [10][25] - Future bidding will concentrate on water resource, bridge, marine, and tunnel projects in regions where the company has demonstrated strong performance and margins [10][14] - The company aims to leverage the support from surety partners to execute on a strong backlog of new core work [9][28] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in the financial results for 2025 but emphasized a commitment to a strategic plan that includes capital restructuring and focusing on core business areas [4][28] - The company is optimistic about future performance, citing a strong pipeline of opportunities and the support of surety partners as key factors for recovery [14][28] Other Important Information - The company has successfully brought in $116 million to support bonded construction projects under general indemnity agreements with sureties [7][9] - The sureties have agreed to waive all scheduled principal and interest payments through maturity, reducing debt service by approximately $27 million over the next 12 months [8][9] Q&A Session Summary Question: Are there continuing opportunities in the data center market? - Management confirmed ongoing opportunities in the data center market, with expectations to grow this segment [35] Question: How do the margins of data center projects compare to traditional contracts? - Management indicated that margins for data center projects are expected to align with core performance in the civil segment [36] Question: Will the sale of non-core assets impact the ability to win new projects? - Management assured that the sale of non-core assets will not materially impact bidding and execution capabilities [37]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $104 million, a significant decline from $267 million in the prior year, primarily due to a revenue reversal of $92 million related to legacy disputes [5][15] - Gross loss for Q4 2025 was $193 million, compared to a gross profit of $8 million in Q4 2024, driven by adverse legal rulings and legacy project adjustments [5][16] - Net loss attributable to stockholders was $216 million or $4 per share, compared to a loss of $4.2 million or $0.09 per share in the same quarter last year [18][23] Business Line Data and Key Metrics Changes - The Civil segment reported revenue of $58.4 million, down from $103.8 million in the same period last year, with a gross loss of $31.3 million compared to a gross profit of $8 million [18][19] - The Transportation segment had revenue of $45.6 million, a decrease of $117.9 million from the prior year, with a gross loss of $162.1 million compared to a gross loss of $365,000 in the same period last year [19][24] Market Data and Key Metrics Changes - The company ended 2025 with a backlog of just over $2 billion, with expectations to burn approximately 38% of this backlog in 2026 [25] - The Infrastructure Investment and Jobs Act is driving robust demand for specialized infrastructure services, particularly in the public sector [12] Company Strategy and Development Direction - The company is focused on closing out legacy projects and optimizing its capital structure, including monetizing idle equipment and non-core assets [10][9] - Future bidding will concentrate on water resource, bridge, marine, and tunnel projects in regions where the company has demonstrated strong performance [10][13] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in the financial results but emphasized confidence in the company's future due to strong project teams and a solid backlog [4][28] - The company is not providing formal financial guidance at this time due to ongoing restructuring and uncertainty around legacy project resolutions [25] Other Important Information - The company has secured $116 million in support from surety partners to fund bonded construction projects, with repayment terms extending until March 2027 [7][8] - Selling, general, and administrative expenses for Q4 were $17 million, up from $15.7 million in the prior year, primarily due to bad debt expenses [17] Q&A Session Summary Question: Are there continuing opportunities in the data center market? - Management confirmed ongoing opportunities in the data center market, with expectations to grow this segment [35] Question: How do the margins of data center projects compare to traditional contracts? - Margins for data center projects are expected to align with the core performance of the Civil segment [36] Question: Will the sale of non-core assets impact the ability to win new projects? - Management stated that the sale of non-core assets will not materially impact bidding and execution capabilities [37]

Financial Data and Key Metrics Changes - The company reported a record revenue of BRL 5 billion, up 5% year-over-year, with record RASK exceeding 46 cents [3] - EBITDA reached BRL 2.1 billion with a margin of 36.9%, and EBIT was BRL 1.4 billion, indicating strong profitability [3][4] - The restructuring process resulted in a significant reduction of debt by $2.6 billion and a more than 50% reduction in annual interest payments [8][10] Business Line Data and Key Metrics Changes - The Beyond the Metal business unit's contribution to RASK increased from 15% in Q4 2019 to 21% in Q4 2025, showcasing growth in high-margin opportunities [4][5] - The loyalty program, cargo business, and vacation business continued to grow at double digits, providing stable revenue streams [5] Market Data and Key Metrics Changes - The company maintained a disciplined capacity growth strategy, with RASK increasing 3.5% year-over-year while growing capacity [4] - The company has an 80% departure share in its three main hubs, which are positioned to generate high-yield demand [14] Company Strategy and Development Direction - The company has adopted a conservative growth strategy, planning for only 1% growth in 2026 to navigate high fuel prices effectively [12][20] - The restructuring has strengthened the balance sheet, reduced leverage, and improved cash generation, allowing for better market positioning [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate rising fuel prices, citing a history of successfully recapturing costs [22][24] - The company is focused on maintaining a robust liquidity position and is prepared to respond to market volatility [10][20] Other Important Information - The company achieved a significant transformation in its capital structure, with net leverage reduced to below 2.5, the lowest in its history [9] - The company is set to relist in the U.S. around April 20, following a reverse split [37] Q&A Session Summary Question: How has fuel pass-through historically transpired? - Management noted that they have successfully recaptured costs in the past, including during the Ukraine war in 2022, and expect to recapture 60%-80% of costs within 3 to 9 months [22][24] Question: What is the plan for capacity in the first half of the year? - The company plans to cut capacity in response to rising fuel prices, focusing on profitable routes and accelerating revenue recapture [27][28] Question: How do you see the competition in the market? - Management indicated that while LATAM is increasing capacity, Azul's network is uniquely positioned with minimal overlap, allowing for effective revenue maximization [42][43]

Financial Data and Key Metrics Changes - The company reported a net income of $275 million for Q1 2026, which is more than 55% higher than the previous year and exceeded December guidance by $40 million or $0.03 per share [15] - Revenue favorability contributed $0.04 per share due to a 2.7% increase in yields compared to the prior year, on top of a more than 7% increase in Q1 last year [15] - Cruise costs without fuel per available lower berth day (ALBD) increased by 5.3% year-over-year, which was better than December guidance by half a point [16] Business Line Data and Key Metrics Changes - The company achieved record first-quarter revenues, net yields, operating income, EBITDA, and customer deposits, with customer deposits reaching almost $8 billion, surpassing last year's record by nearly 10% [5][6] - Bookings for current year sailings increased by 10% year-over-year, contributing to a record book position for the remainder of the year at historically high prices [5] Market Data and Key Metrics Changes - The company noted robust closing demand and higher onboard spending, indicating strong consumer engagement and spending patterns [5] - The company is well-positioned with nearly 85% of 2026 already booked, with less inventory available than the previous year, supporting improved yields [5] Company Strategy and Development Direction - The company introduced the "Propel" strategy, targeting a return on invested capital above 16% and earnings per share growth of more than 50% versus 2025 by 2029 [9] - Propel focuses on yield expansion, disciplined capacity growth, monetizing destination portfolios, and maintaining cost discipline [10][11] - The company plans to invest over $15 billion back into the business while targeting a net debt to EBITDA ratio of 2.75 times and a reduction in greenhouse gas intensity of more than 25% compared to 2019 levels [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's ability to perform through unpredictable macroeconomic and geopolitical conditions, highlighting strong demand across its cruise lines [6][13] - The company remains focused on executing its long-term strategy and delivering exceptional vacation experiences while managing costs effectively [13] Other Important Information - The company is experiencing a significant fuel headwind of $500 million, but this is against a substantial EBITDA forecast of $7 billion [7] - The company has restructured its organization and sharpened its commercial operations, which has contributed to its current performance [8] Q&A Session Questions and Answers Question: Insights on long-term targets and impact of recent changes - Management stated that long-term targets remain intact despite recent fuel price changes, with minimal exposure to geopolitical issues in the Middle East [27][28] Question: Booking environment and cancellation rates - Management reported no significant changes in cancellation trends and noted strong onboard spending as they moved into Q2 [36] Question: Drivers of ROIC above 16% in the Propel plan - Management indicated that moderate yield growth and low single-digit cost growth are key drivers for achieving the ROIC target [50][51] Question: 2Q guidance and yield growth - Management explained that the 2Q yield guidance reflects consistent expectations despite the strong first quarter performance [54] Question: Fuel pricing and hedging strategies - Management acknowledged the ongoing evaluation of fuel hedging strategies but emphasized a focus on reducing fuel consumption as a long-term solution [92]

Financial Data and Key Metrics Changes - The company recorded recurring consolidated EBITDA of $109 million in Q4 2025, and for the full year, it was $557 million, representing a 49% decrease compared to 2024 [5][10] - Operating cash flow showed a generation of approximately $13 million in the quarter, while for the year, there was a cash consumption of $246 million due to lower EBITDA [5][12] - Corporate cash at the end of Q4 2025 totaled approximately $2.1 billion, with corporate leverage at approximately 14.74x [5][13] Business Line Data and Key Metrics Changes - In Brazil, recurring EBITDA for the segment was $698 million in 2025, a 22% decrease from 2024, primarily due to lower resin and chemical sales volumes and lower average spreads [8][10] - The U.S. and Europe segment reported a recurring EBITDA of negative $52 million for the year, impacted by lower polypropylene and polyethylene spreads [9] - In Mexico, polyethylene utilization in Q4 2025 reached 85%, an increase of 38 percentage points from Q3 2025, but the annual utilization was 64%, a 14 percentage point reduction compared to 2024 [10] Market Data and Key Metrics Changes - Domestic resin demand in Brazil declined by approximately 2% in 2025, following a 60% growth in 2024, as downstream converters optimized inventory levels amid global uncertainties [6][10] - Global operating rates for polyethylene and polypropylene reached historically low levels of 79% and 74%, respectively, reflecting a decline in demand of approximately 3 million tons globally [14] Company Strategy and Development Direction - The company aims to reinforce its capital structure to ensure business continuity and maintain safety as a non-negotiable value [20][21] - Strategic initiatives will focus on resilience and financial soundness, including operational optimizations and initiatives for the defense of the Brazilian chemical industry [21][23] - The transformation plan includes expanding the gas and renewable base in the company's feedstock profile to enhance competitiveness and sustainability [22][23] Management's Comments on Operating Environment and Future Outlook - The management highlighted the challenges posed by geopolitical tensions and the prolonged down cycle in the petrochemical industry, which significantly impacted profitability [3][25] - The company is monitoring geopolitical developments and their potential effects on costs, spreads, and competitive dynamics, while maintaining discipline in commercial and financial management [19][25] - Future scenarios regarding the geopolitical conflict and its impact on the petrochemical supply chain were discussed, emphasizing the need for preparedness [19][40] Other Important Information - The company has made significant progress in addressing the Alagoas geological event, with a total provision of approximately BRL 18 billion, of which BRL 13.9 billion has been disbursed [12][29] - The company implemented over 70 action plans across various fronts to minimize the adverse effects of the downturn cycle and preserve liquidity [14][25] Q&A Session Summary Question: How has the global industry behaved in the current context? - The company noted that Asian petrochemical powers have lower naphtha inventories compared to its own, and it has a larger initial supply of feedstock than competitors [34][35] Question: What are the expected effects of the war on EBITDA? - The company does not provide formal guidance but referenced historical EBITDA trends and external consultancy expectations for future petrochemical spreads [41][42] Question: What is the likelihood of a Chapter 11 reorganization for Braskem Idesa? - The company emphasized that it is a priority to reorganize Braskem Idesa's capital structure and will share material information as it becomes available [44][45] Question: What is the status of the anti-dumping process for polyethylene in Brazil? - The company plans to appeal a decision regarding anti-dumping protections, asserting that the case is strong and well-documented [46][47] Question: What is the relationship with Petrobras and potential support? - The company stated that Petrobras is interested in Braskem and remains engaged in discussions regarding future improvements and commercial conditions [61][62]

Financial Data and Key Metrics Changes - Azul reported a record revenue of BRL 5 billion for the fourth quarter, up 5% year-over-year, with a record RASK of more than 46 cents [5] - The quarterly EBITDA reached BRL 2.1 billion with a margin of 36.9%, and EBIT was BRL 1.4 billion, indicating strong profitability [6] - RASK increased by 3.5% year-over-year, reflecting effective commercial strategy and capacity growth [6] Business Line Data and Key Metrics Changes - The contribution of high-margin business units to RASK grew from 15% in Q4 2019 to 21% in Q4 2025, highlighting the success of Azul's Beyond the Metal business units [6][7] - The loyalty program, cargo business, and vacation business continue to grow at double digits, providing stable, recurring revenue streams [7] Market Data and Key Metrics Changes - Azul's domestic capacity decreased by 1%, while competitors GOL and LATAM increased their capacities by 18% and in the high single digits, respectively [45] - The company maintains a strong market position with over 80% of its routes having no nonstop competition, allowing for better pricing options [17] Company Strategy and Development Direction - Azul's restructuring process has significantly improved its capital structure, reducing debt by $2.6 billion and annual interest payments by over 50% [10][12] - The company is focused on a disciplined capacity strategy, planning for only 1% growth in 2026 to navigate the current high fuel price environment [15][24] - Azul aims to maximize revenue recapture through strategic pricing and selective capacity cuts, ensuring profitability amid rising costs [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current fuel price environment, citing a history of successfully recapturing costs [26][28] - The company is well-positioned to respond to macroeconomic challenges with a strengthened balance sheet and reduced financial obligations [12][20] Other Important Information - Azul's restructuring has resulted in a lower cost structure, with productivity increasing by 5.7% and maintaining flat CASP despite inflation [9] - The company is preparing for its relisting in the United States around April 20, following a reverse split that has already been approved [41] Q&A Session Summary Question: How has fuel pass-through historically transpired? - Management noted that they have successfully recaptured more than 100% of fuel cost increases in the past, with current margins being higher than before [26][27] Question: What is the plan for capacity in the first half of the year? - The initial plan was for slight negative growth in the first half, but capacity cuts are being considered to avoid flying marginal routes and to accelerate revenue recapture [32][33] Question: How does Azul view competition and capacity growth among major airlines? - Azul's capacity is down 1%, while competitors are increasing theirs, but the company remains proactive in maximizing revenue recapture within its unique network [45][46]

Financial Data and Key Metrics Changes - Net sales for 2025 totaled $118.4 million, representing a 7.6% decrease from $128.1 million in 2024 [10] - Net sales for Q4 2025 totaled $3.3 million, a 5.9% increase from $28.6 million in Q4 2024 [10] - Gross margin percentage increased to 15.2% in 2025 compared to 13.1% in 2024 [13] - Adjusted EBITDA for Q4 2025 was $1.2 million, compared to a loss of $889,000 in Q4 2024 [19] - Cash totaled $1.7 million as of December 31, 2025, up from $916,000 at the end of 2024 [15] Business Line Data and Key Metrics Changes - Medical imaging net sales increased by $2.5 million or 6.7% in 2025 compared to 2024, with a $1.4 million increase in Q4 2025 compared to Q4 2024 [10][11] - Medical device net sales decreased by $184,000 in Q4 2025 compared to the same quarter in 2024, but increased by $2.7 million or 7.8% for the full year [11] - Aerospace and Defense net sales decreased by $5 million in 2025, but increased by $1.1 million in Q4 2025 compared to Q4 2024 [12] - Industrial net sales decreased by $4.6 million or 12.9% for the full year and by $607,000 or 7.7% in Q4 2025 compared to Q4 2024 [12][13] Market Data and Key Metrics Changes - Customer backlog increased to $77.3 million at year-end 2025, a 17.4% increase from $65.9 million at the end of 2024 [4][13] - The company is experiencing strong quoting activity as customers evaluate nearshore manufacturing strategies for North America and Asia [7] Company Strategy and Development Direction - The company is focused on strengthening its balance sheet and reducing inventory investments in 2026 [20] - There is an emphasis on driving efficiencies in manufacturing processes and operating leverage to achieve sustainable long-term EBITDA growth [21] - The company is investing in new technologies and regulatory capabilities to leverage future growth [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about positioning in the nearshoring landscape and the benefits of increased backlog [27] - The company is monitoring trade policies and geopolitical uncertainties closely, particularly regarding tariffs [8] - Management believes that the reimbursement of certain tariffs will be beneficial for the company [8] Other Important Information - The company entered into new agreements for a $2.2 million term note and a $15 million asset-backed line of credit, which is expected to lower borrowing costs [6] - The restructuring activities in 2024 and early 2025 are yielding positive operational and financial results [27] Q&A Session Summary - No questions were asked during the Q&A session, and the call concluded without any participant inquiries [29][30]

Financial Data and Key Metrics Changes - Q4 2025 revenues reached $13.4 million, a 30% increase compared to the same quarter last year, with full-year revenues of $44.1 million, up 35% from 2024 [4][20] - Adjusted EBITDA for Q4 was $4.8 million, up from $3.7 million in the prior year, representing 36% of revenues, while full-year adjusted EBITDA rose to $13.6 million, an 89% increase from $7.2 million the previous year [4][20] - Gross margins expanded to 77%, driven by pricing improvements in consumables and reductions in system cost of revenue [20] Business Line Data and Key Metrics Changes - The company sold 624 UltraMIST systems in 2025, compared to 374 in the previous year, with Q4 sales of 255 systems marking a record high [4][20] - The dermaPACE and Profile product lines were sunset in Q4, leading to increased costs in goods sold and operating expenses [5] Market Data and Key Metrics Changes - The company noted significant pressure in the wound care market due to changes in CMS reimbursement policies, which have led to a reduction in reimbursement prices for skin substitutes [6][7] - The company observed a decline in customer count and patient count within its customer base due to these pressures, impacting growth rates [8] Company Strategy and Development Direction - The company is focusing on expanding its active system base and engaging with new resellers to capitalize on market opportunities created by industry disruptions [11][12] - The strategy includes working with resellers who have strong customer relationships and expertise in wound care, aiming to increase market penetration [12][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by CMS changes but expressed optimism about the long-term market direction, indicating that the current disruption could lead to favorable conditions for the company [18][28] - The company anticipates a revenue growth range of 16%-25% for 2026, with expectations of improved performance in the latter half of the year [28][40] Other Important Information - A restatement of financials was completed, primarily related to previously unrecognized sales tax liabilities, with a total revenue impact of approximately $300,000 [21] - The company is actively working with tax advisors to strengthen compliance processes and controls [22] Q&A Session Summary Question: Can you speak about the selling cycle for inbound interests? - Management noted that the selling cycle has been stretched due to industry shock but is starting to improve [33] Question: What can we expect for adjusted EBITDA in 2026? - Management refrained from providing specific guidance but indicated that incremental revenue would likely drop to about 50% at the EBITDA line [35] Question: How should we think about growth rates after Q1? - Management expects the rest of the year to be better than Q1, but it is too early to break it down by quarter [40] Question: What does the commercial organization look like? - The internal sales force is being expanded, and the company is working with larger resellers that have significant personnel [42][43] Question: Can you provide updates on the manufacturing line for applicators? - Management reported delays in qualifying the new manufacturing line but is hopeful for progress in the coming months [56]