Financial Performance - Q3 FY25 - Total revenue reached $46 million, a 2% increase compared to Q3 FY24[31] - Identity revenue grew significantly by 24% to $20 million[31] - Deposits revenue experienced a decrease of 10%, totaling $26 million[31] - SaaS revenue showed strong growth, increasing by 23% to $19 million[31] - Adjusted EBITDA increased by 8% to $13 million, with an adjusted EBITDA margin of 28.4%, a 160 bps increase[31] - Free Cash Flow surged by 69% to $21 million[31] Key Metrics - LTM SaaS Revenue increased by 21% year-over-year, reaching $74 million, representing 41% of total LTM revenue, up 470 bps[33] - LTM Adjusted EBITDA increased significantly by 53% to $57 million[33] - LTM Free Cash Flow showed substantial growth, increasing by 345% to $56 million[33] - Free Cash Flow Conversion reached 99%, a significant increase of 6490 bps[33] Financial Outlook for FY25 - The company projects total revenue between $174 million and $177 million for FY25[56] - The company anticipates an adjusted EBITDA margin between 28% and 29% for FY25[60]

Financial Performance - Net revenue decreased from $6.7 million in Q2 2024 to $5.0 million in Q2 2025 due to the planned exit of low margin business[12] - GAAP gross margin decreased from 9.1% in Q2 2024 to -9.4% in Q2 2025, while non-GAAP gross margin decreased from 14.6% to -0.8% due to Thailand to Singapore transition and lower utilization[12] - GAAP net loss from continuing operations decreased from ($6.9 million) in Q2 2024 to ($6.0 million) in Q2 2025, with EPS from continuing operations (GAAP) diluted improving from ($0.31) to ($0.26)[12] - Non-GAAP adjusted EBITDA decreased from ($3.7 million) in Q2 2024 to ($4.6 million) in Q2 2025 due to additional costs related to the completion of production in Singapore[12] Balance Sheet and Cash Flow - Cash and cash equivalents decreased from $132.7 million in Q1 2025 to $129.6 million in Q2 2025[13] - Net operating cash use for the 9 months following Sept 30, 2024, was $10.3 million, with an expected net operating cash use of $13 million to $15 million for the 12 months following Sept 30, 2024[13, 14] Business Updates and Outlook - The company anticipates continued market uncertainty and is closely monitoring risks, having developed a pass-through strategy to protect margins[7] - Q3 2025 net revenue is expected to be $4.8 million to $5.2 million, impacted by a 19% tariff on imports from Thailand announced by the U S government in July 2025[15] - The company is executing its "Perform, Accelerate, and Transform" (P-A-T) strategy to grow sales and EBITDA[19] - The company has 100 "new" sales opportunities in the pipeline at the end of Q2 2025, with a 14% conversion rate to sales during the first half of 2025[37] - There are 19 active new product development (NPD) projects at the end of Q2 2025, including 12 customer-driven and 7 internally-driven projects[37]

Financial Performance - Q2 2025 revenue reached $35.8 million[14] - The company had 652,000 average paid members in Q2 2025[15] - Total interchange for Q2 2025 was $5.3 million[17] - Q2 2025 operating cash flow was $8.9 million[20] - Free cash flow for Q2 2025 was $6.3 million, a 10% increase year-over-year[23, 26] - Non-GAAP net loss for Q2 2025 was $(1.9) million[20] - Adjusted EBITDA for Q2 2025 was $(1.4) million[24] - The company is increasing its FY 2025 free cash flow guidance to a range of $19.0 million to $23.0 million[26] Marketing Impact - The company estimates that the F1 movie generated an equivalent value of $61.0 million in marketing dollars[36] - The F1 movie increased unaided brand awareness by 50% among the core demographic (ages 18-54)[37] - The F1 movie increased unaided brand awareness by 350% among the next generation of bottom-up adopters (ages 18-24)[42]

Financial Performance - Q2 2025 product and service revenue reached $39.8 million, a 7% sequential increase and a 10% increase compared to Q2 2024[12] - Consumable revenue increased by 11% year-over-year, with Revio pull-through in the low-to-mid $200,000s per system[12] - Instrument revenue increased sequentially but decreased by 4% year-over-year due to funding constraints[12] - Non-GAAP gross margin was approximately 38% in Q2 2025, compared to 37% in Q2 2024[45, 47] - Q2 2025 non-GAAP operating expenses were $58.1 million, an 18% decrease compared to Q2 2024[47] - Cash burn was approximately $28 million in Q2 2025, with expectations for improvement in the second half of the year[46] System Placements - 15 Revio systems were shipped in Q2 2025, with 60% going to new customers and one-third to Dx/LDT and hospital labs[12] - 38 Vega systems were shipped, with nearly 60% going to new customers[13] - Cumulative Revio shipments reached 297, and Vega shipments reached 73[14] Guidance - Full-year revenue guidance is maintained at the midpoint, narrowing the range to $155 million to $165 million, representing 1% to 7% growth over 2024[21, 22] - The company expects mid-teens growth in consumables revenue and a mid-teens decline in instrument revenue[22]

Financial Performance - Q2 2025 - Revenue for U S Marketplace & Other increased by 13 7% year-over-year, reaching $222 million[10] - Non-GAAP Gross Profit for U S Marketplace & Other was $206 4 million, with a margin of 93%[10] - Non-GAAP Adjusted EBITDA for U S Marketplace & Other grew by 30 8% year-over-year to $80 1 million, resulting in a 36% margin[10] - Digital Wholesale revenue was $12 million[10], with a Non-GAAP Gross Profit of $0 9 million and a Non-GAAP margin of 7%[10] - The company's Non-GAAP Adjusted EBITDA was $77 3 million, representing a 33% margin[10] Key Business Updates - Digital Deal adoption reached approximately 12,000 dealers, with Digital Deal Leads accounting for over 27% of email leads[15] - Max Margin adoption increased by approximately 70% quarter-over-quarter, while Merchandising Health grew by approximately 30% quarter-over-quarter[17] - Daily active users of the core dealer app functionality increased by 71% year-over-year[17] Dealer Base Growth - The U S paying dealer base grew by 8 5% year-over-year, an increase of 1,743 dealers[19] - The international paying dealer base increased by 19 3% year-over-year[19] - Average Quarterly Revenue per Subscribing Dealer (QARSD) in the U S increased to $7,533, while international QARSD reached $2,309[19] Q3 2025 Guidance - Marketplace Revenue is projected to be between $228 million and $233 million[38] - Non-GAAP Marketplace Adjusted EBITDA is expected to range from $76 5 million to $84 5 million[33]

Financial Performance - Q2 2025 - Total revenue was $666 million, flat quarter-over-quarter (Q/Q) and down 3% year-over-year (Y/Y) [7] - Non-GAAP gross profit was $132 million, essentially flat Q/Q and down 5% Y/Y [7] - Non-GAAP gross margin was 198%, down 01 percentage points Q/Q and 04 percentage points Y/Y [7] - Non-GAAP operating profit was $27 million, up 7% Q/Q and 34% Y/Y [7] - Non-GAAP operating margin was 41%, up 03 percentage points Q/Q and 11 percentage points Y/Y [7] - Non-GAAP loss per share was ($006), an increase of $003 Y/Y [7] Segment Performance - Q2 2025 - Total Rackspace revenue was $666 million, with Private Cloud at $250 million and Public Cloud at $417 million [8] - Private Cloud revenue decreased by 4% Y/Y, while Public Cloud revenue decreased by 2% Y/Y [8] - Segment operating profit was $78 million, with Private Cloud contributing $62 million and Public Cloud $16 million [8] - Corporate functions resulted in a loss of $50 million [8] Cash Flow and Capital Expenditures - Cash provided by operating activities was $8 million for Q2 2025 [9] - Free cash flow was ($12) million for Q2 2025 [9] - Total capital expenditures were $31 million, with cash capital expenditures at $21 million [9] - As of June 30, 2025, cash and cash equivalents were $104 million, with $310 million available under the revolving credit facility, resulting in total liquidity of $414 million [9] Q3 2025 Guidance - Total revenue is expected to be between $660 million and $674 million [12] - Private Cloud revenue is projected to be between $246 million and $254 million [12] - Public Cloud revenue is expected to be between $414 million and $420 million [12] - Non-GAAP operating profit is guided to be between $30 million and $32 million [12] - Non-GAAP loss per share is expected to be between ($004) and ($006) [12]

Business Strategy - The company is accelerating its shift to an Industrial REIT, focusing on Industrial Outdoor Storage (IOS) and traditional industrial assets, with the intention to scale IOS and exit the office sector[12] - The company is committed to selling all remaining office properties, having already completed approximately $2.2 billion in office dispositions since 2022, with an expected acceleration in the pace of sales[13] Portfolio Performance and Acquisitions - The company increased IOS Annualized Base Rent (ABR) by over 25% since the beginning of the year[16] - The company acquired two IOS assets for approximately $52 million, encompassing approximately 36.2 usable acres and generating $3.2 million in ABR, with an estimated 13% mark-to-market opportunity[5] - The company completed $158 million in sales during the quarter and an additional $24 million subsequent to quarter-end, bringing the year-to-date sales total to $216 million[5] Financial Position - The company is targeting a Net Debt / EBITDAre ratio at or below 6.0x and is using interest rate swaps to manage floating-rate exposure[13] - The company's Net Debt / Adjusted EBITDAre was 7.0x in Q1 2025, 6.4x in Q2 2025, and a pro forma 6.6x for Q2 2025[5] - The remaining office net book value is $615 million, representing approximately 35% of the real estate net book value[5] Industrial Portfolio Composition - The industrial portfolio consists of 53 IOS properties and 19 traditional industrial assets[48] - The industrial portfolio is approximately 100% leased, with a weighted average lease term (WALT) of 5.1 years and in-place ABR of $78.7 million[43] - The industrial portfolio has embedded growth potential, driven by an estimated 38% mark-to-market opportunity and contractual rent escalations averaging 2.5%[43]

Company Overview - Golden Entertainment focuses on casino and branded tavern operations in Nevada[6,8] - The company owns real estate with excess land, providing potential development opportunities[11,12] - The company has an experienced management team aligned with shareholders[6] Market Position - Golden Entertainment operates 8 Nevada casinos with approximately 4,400 slots and 99 tables[7] - The company also operates 72 Nevada taverns with approximately 1,100 slots[7,26] - The company's loyalty program, True Rewards, includes over six million players[30] Financial Performance - As of June 30, 2025, the company's net debt was $385 million[32] - Since July 2023, the company has returned $216 million of capital to shareholders[33] - The company has $392 million in 1st lien term loans and $40 million drawn on a revolver as of June 30, 2025[36,37] Nevada Market - Nevada's total gaming Gross Gaming Revenue (GGR) in 2024 was $156 billion[17] - Las Vegas Strip GGR in 2024 was $88 billion, while Nevada locals GGR was $36 billion[17] - Las Vegas visitation reached 425 million in 2024[18]

Financial Performance - Net revenues reached $152.6 million, a 6% year-over-year increase[18, 20] - Gross margin was 67.0%[18] - Adjusted EBITDA margin was 12.9%, exceeding expectations[18, 20] - The company maintained a strong financial position with $238.8 million in cash, cash equivalents, and short-term investments[20] Key Operating Metrics - Active customers increased by 4% year-over-year to 2.736 million[20, 24] - Average order value (AOV) increased by 4% year-over-year to $117[20, 30] - Net revenues per active customer saw a slight decrease of 1% year-over-year, landing at $208[27] Revenue Breakdown - Scrubwear revenues grew by 8%, while non-scrubwear revenues declined by 3%[20] - U S revenues grew by 4%, and international revenues experienced substantial growth of 20%[20] International Expansion - International net revenues accounted for 15% of total net revenues in FY 2024 and Q2 2025, with over 80% of global healthcare professionals located outside the U S [61] Updated Outlook for 2025 - Net revenues growth is projected to be up low-single-digits compared to 2024[107] - Adjusted EBITDA margin is expected to be between 8.5% and 9.0%[107]

Financial Performance - Net income reached $26.0 million, a 75.9% increase compared to $14.8 million in 2Q24[7] - Core net income increased by 72.6% to $27.5 million from $15.9 million in 2Q24[7] - Portfolio net interest margin (NIM) increased to 3.82%, up 47 bps from 3.35% in 1Q25[7] - Diluted book value per share as of June 30, 2025, was $15.62, a 5.1% increase from $14.87 as of March 31, 2025[15] Loan Portfolio and Production - Loan production reached a record of $725.4 million in UPB, a 13.3% increase from 1Q25 and a 71.8% increase from 2Q24[7, 18] - The total loan portfolio was $5.9 billion in UPB as of June 30, 2025, a 30.8% increase from $4.5 billion in UPB as of June 30, 2024[7, 21] - The UPB of fair value option (FVO) loans was $3.6 billion, or 62.3% of total loans, as of June 30, 2025, an increase from 42.0% as of June 30, 2024[21] Capital and Financing - The company completed four securitizations totaling $985.5 million of securities issued[6] - The company collapsed and refinanced two securitizations totaling $68.0 million in debt outstanding, which released $53.5 million of capital[6] - Nonperforming loans (NPL) as a % of HFI loans decreased to 10.3%, down from 10.8% as of March 31, 2025[7]