Financial Data and Key Metrics Changes - Total company sales for fiscal 2025 were flat compared to the prior year, with an operating loss of $16.2 million, which improved compared to fiscal 2024 [3][9] - Loss before income taxes for 2025 was $9.3 million, an improvement from a pre-tax loss of $29.9 million in fiscal 2024, primarily due to a prior year goodwill write-off and an increase in gross margin [9][10] - Gross margin for fiscal 2025 improved to 35.1%, up 1.2 points from the prior year [9][10] - Operating expenses decreased by 8%, or $20.2 million, from the prior fiscal year [10] Business Line Data and Key Metrics Changes - In the fishing segment, demand exceeded expectations for Humminbird's new Explore series and MEGA Live 2 fish finders, contributing to growth [4] - Camping and watercraft sales declined for fiscal 2025, primarily due to the closeout of Eureka inventory, but excluding this impact, the segment grew by 2% [4] - Jetboil's new fast boil cooking systems continued to outperform expectations, and Old Town's fishing kayak line performed well despite a struggling overall marketplace [5] - Diving sales increased due to modest improvements in certain regional markets, with the launch of the new Hydros Pro 2 buoyancy control device generating enthusiasm [6][7] Market Data and Key Metrics Changes - The outdoor recreation marketplace remains uncertain, with global macroeconomic challenges expected to continue [8] - The company is focused on expanding its digital and e-commerce capabilities, which are seen as areas of opportunity for growth [7][8] Company Strategy and Development Direction - The company is committed to innovation as a key priority, focusing on consumer-driven products to drive future growth [4][16] - Cost savings initiatives remain a priority, with efforts to enhance operational efficiencies and manage product costs [7][10] - The company aims to strengthen its digital footprint to make products easily accessible to consumers [7] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about market momentum continuing into early fiscal 2026, although it is too early to declare a market turnaround [8][14] - The company plans to continue investing in innovation and operational efficiencies to position itself for future success [8] Other Important Information - The balance sheet remains debt-free, and the company has a healthy cash position, indicating confidence in creating long-term shareholder value [11] Q&A Session Summary Question: Observations on fourth quarter revenue gain and momentum into fiscal 2026 - Management noted excitement about growth in the third and fourth quarters, with ongoing positive market momentum, though it is still early in the year [14] Question: Insights on the new product pipeline for 2026 - Management highlighted ongoing momentum in fishing and diving innovations, emphasizing that product launches span multiple years and innovation remains a key focus [16] Question: Impact of pricing actions due to tariffs and retailer reception - Management confirmed strategic pricing actions were taken, which have been well received by retail partners, with no negative impact on business observed so far [17] Question: Contribution of operational efficiencies to gross margin and future opportunities - Management indicated that operational improvements contributed over a point to gross margin, with ongoing cost savings initiatives planned for fiscal 2026 [18] Question: Expected effective tax rate for fiscal 2026 - Management expects the effective tax rate to return to a more normal range in the mid to high 20s, following the establishment of a deferred tax valuation reserve [20]

Financial Data and Key Metrics Changes - The negative EBITDA impact in Q4 from Monterrey challenges was $8 million, which was higher than the previously estimated $5 million [5] - EBITDA margins for the Hardware Solutions segment would have been in the 16% range without the negative impact [5] - A $3 million hit is expected in the first quarter due to ongoing challenges [6] Business Line Data and Key Metrics Changes - The Hardware Solutions segment faced increased costs due to a shift to 24/7 operations and higher labor and freight costs [5] - The company anticipates a flat revenue outlook for the next year, with potential for improved EBITDA due to reduced costs from Mexico and additional synergies [9] Market Data and Key Metrics Changes - The company has not observed irrational pricing behavior in the market, indicating a stable demand environment [20] - Commodity prices are expected to stabilize, but there may be pricing pressure as they come down [21] Company Strategy and Development Direction - The company is focusing on operational improvements and sharing best practices across its divisions to enhance efficiency [25] - There is potential for insourcing demand in the Custom Solutions group to mitigate tariff risks [24] - The company is balancing cash flow generation, stock repurchases, and debt paydown, especially in the first quarter, which is typically a low cash flow period [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in their ability to manage costs and operational efficiency despite inflationary pressures [35] - The company is optimistic about the recovery in the repair and remodel market, which is expected to lead new construction recovery [54] Other Important Information - The company has been proactive in addressing operational issues in its facilities, ensuring that similar risks are mitigated [32] - SG&A expenses are expected to be around $73 million in Q1, reflecting higher costs due to inflation and benefits [34] Q&A Session Summary Question: Impact of Monterrey challenges on EBITDA - The negative EBITDA impact was confirmed to be $8 million, higher than expected, affecting margins in the Hardware Solutions segment [5] Question: Future outlook on market volume and procurement synergies - The informal outlook suggests flat volumes with flat pricing, but improved EBITDA due to reduced costs and synergies [9] Question: Concerns about stock repurchase limitations - The company focused on debt repayment over stock repurchases, but will be opportunistic in the future [11] Question: Competitive pricing behavior in the market - No irrational pricing has been observed, with supply chain risks being prioritized by customers [20] Question: Expected product performance in 2026 - The Custom Solutions group may see opportunities due to tariff impacts, while other segments are in a wait-and-see mode [24] Question: Benefits from resegmentation - Early operational improvements have been noted, with potential for mid- to long-term growth opportunities [26] Question: SG&A expense clarification - SG&A is expected to be higher due to inflation and benefit costs, but operational efficiency is a focus to offset these increases [35] Question: Pricing stability and cost outlook - Pricing is primarily driven by inflationary pressures, and the company expects to maintain pricing due to justified cost increases [50] Question: Demand outlook for new residential vs. repair and remodel - Both markets are currently impacted similarly, but repair and remodel is expected to lead the recovery [54] Question: Cash flow expectations for Q1 - Slightly negative free cash flow is possible in Q1, depending on volume and CapEx timing [55]

Financial Data and Key Metrics Changes - Total company sales for fiscal 2025 were flat compared to the prior year, with an operating loss of $16.2 million, which improved compared to fiscal 2024 [3][9] - Loss before income taxes for 2025 was $9.3 million, an improvement from a pre-tax loss of $29.9 million in fiscal 2024, primarily due to a prior year goodwill write-off and an increase in gross margin [9][10] - Gross margin for fiscal 2025 improved to 35.1%, up 1.2 points from the prior year [9][10] - Operating expenses decreased by 8%, or $20.2 million, from the prior fiscal year [10] Business Line Data and Key Metrics Changes - In the fishing segment, demand exceeded expectations for Humminbird's new Explore series and MEGA Live 2 fish finders, contributing to growth [4] - Camping and watercraft sales declined for fiscal 2025, primarily due to the closeout of Eureka inventory, but excluding this impact, the segment grew by 2% [4] - Diving sales increased due to modest improvements in certain regional markets, with the launch of the new Hydros Pro 2 buoyancy control device receiving positive reception [5][6] Market Data and Key Metrics Changes - The overall watercraft marketplace is still struggling, but Old Town's fishing kayak line is performing well [5] - Digital and e-commerce capabilities are being strengthened, with ongoing efforts to expand the digital footprint fueling growth [6][7] Company Strategy and Development Direction - The company is focused on consumer-driven innovation and enhancing digital and e-commerce capabilities as key strategic priorities [8] - Cost savings programs remain a priority, with efforts to drive optimal product costs and enhance operating efficiencies continuing into fiscal 2026 [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about market momentum continuing into early fiscal 2026, although it is still too early to confirm a market turnaround [8][13] - The company is committed to innovation as a key focus, especially in a competitive environment where consumers are price-sensitive [15] Other Important Information - The company maintained a debt-free balance sheet and a healthy cash position, confident in its ability to create long-term value for shareholders [11] Q&A Session Summary Question: Has the revenue gain momentum continued into early fiscal 2026? - Management noted excitement about the growth in the third and fourth quarters, indicating that market momentum appears to be continuing, but it is too early to declare a market turnaround [13] Question: What is the outlook for the new product pipeline for 2026? - Management highlighted ongoing momentum in fishing and diving innovations, emphasizing that product innovation remains a key priority [15] Question: How have pricing actions related to tariffs been received by retail partners? - Management stated that pricing actions taken were strategic and have been well-received by retail partners, with no negative impact on business so far [16] Question: How much have operational efficiencies contributed to gross margin improvements? - Management indicated that operational efficiencies contributed over a point of gross margin improvement, with ongoing cost savings initiatives planned for fiscal 2026 [17] Question: What is the expected effective tax rate for fiscal 2026? - Management expects the effective tax rate to return to a more normal range, mid to high 20s, going forward [18]

Financial Data and Key Metrics Changes - The negative EBITDA impact from Monterrey challenges in Q4 was $8 million, higher than the previously estimated $5 million, affecting EBITDA margins for the Hardware Solutions segment [5][9] - The company paid down debt aggressively during the fiscal year and repurchased approximately $3 million in stock in Q4, despite shares being perceived as undervalued [10][12] Business Line Data and Key Metrics Changes - The Hardware Solutions segment faced challenges due to increased labor and expedited freight costs, but a favorable cost roll impact helped mitigate some losses [5][9] - The company expects a $3 million drag in Q1 from Monterrey issues but anticipates this will go to zero beyond the first quarter [6][9] Market Data and Key Metrics Changes - The company has not observed irrational pricing behavior in the market, indicating a focus on supply chain risk management among customers [19][20] - The Custom Solutions group may face impacts from tariffs, but there is potential for insourcing demand back into the U.S. to mitigate risks [21][23] Company Strategy and Development Direction - The company is focused on operational improvements and sharing best practices across segments, particularly in the extruded solutions group [24][25] - The resegmentation is expected to yield mid- to long-term growth opportunities, with a focus on innovation and process improvements [25] Management Comments on Operating Environment and Future Outlook - Management noted that both residential repair and remodel (R&R) and new construction markets are currently experiencing similar impacts, with R&R expected to lead any recovery [51][53] - The company anticipates stable material costs but expects continued inflationary pressure in specific areas, particularly oil-based products [35][36] Other Important Information - The company is balancing cash flow generation, stock repurchases, and debt paydown, with Q1 typically being a low cash flow period [12][56] - Incentive payouts for the executive team were lower than usual, which may positively impact cash flow in Q1 [57] Q&A Session Summary Question: Impact of Monterrey challenges on EBITDA - The negative EBITDA impact was confirmed to be $8 million, affecting margins in the Hardware Solutions segment [5] Question: Competitive response in the market - Management indicated no irrational pricing behavior has been observed, with supply chain risks being prioritized [19] Question: Expectations for product performance in 2026 - The Custom Solutions group may see impacts from tariffs, but there is potential for insourcing demand [21][23] Question: SG&A changes and outlook - SG&A is expected to be around $73 million, reflecting higher benefit costs and inflationary measures [33][34] Question: Pricing and cost outlook for 2026 - Pricing increases are primarily driven by inflationary pressures, with a strong ability to maintain prices due to cost support [48][50] Question: Cash flow expectations for Q1 - Slightly negative free cash flow is possible in Q1, depending on December and January performance [54][56]

Financial Data and Key Metrics Changes - Total revenue for the first quarter was $7.6 million, up 5.8% year-over-year [14] - Advertising revenue increased by 6% for the quarter, driven by strong growth in the Zedge marketplace [14] - GAAP net income was $0.8 million, compared to a loss of $0.3 million last year, with EPS of $0.06 [17] - Free cash flow was negatively impacted by approximately $350,000 due to restructuring-related tax payments [18] Business Line Data and Key Metrics Changes - Zedge marketplace revenue increased significantly, supported by strong advertising CPMs and subscription revenues [14] - Zedge Plus subscription revenue rose by 29% year-over-year, with net active subscribers growing 54% to nearly 1.1 million [15] - Deferred revenue reached $5.7 million, up 7% sequentially and 55% year-over-year, indicating future revenue potential [16] Market Data and Key Metrics Changes - The core business remains healthy and resilient, with a strong subscription engine scaling effectively [12] - The Data Seeds initiative is gaining traction, with a robust pipeline of prospective customers [6][12] Company Strategy and Development Direction - The company is focused on building products that customers love, scaling successful ones, and allocating capital to enhance long-term shareholder value [12] - The strategy includes a disciplined approach to capital allocation, with share repurchases and dividends reflecting confidence in long-term value creation [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory for fiscal 2026, emphasizing innovation and expanding operating leverage [12] - The company is monitoring the impact of AI developments on its products, particularly regarding Emojipedia [31] Other Important Information - The company has a leaner cost structure and a more efficient operating model entering fiscal 2026 [11] - The Data Seeds Production Cloud is a key asset that allows for the delivery of high-quality datasets for AI training [8] Q&A Session Summary Question: How is Data Seeds recognized as revenue? - Revenue from Data Seeds is recognized when the product is delivered and accepted, currently grouped under digital goods and services [21] Question: What is the typical sales process for Data Seeds? - The sales process involves operational steps beyond production, including contract negotiations, and clarity on timelines will develop over the next few quarters [25] Question: What is the operating status of GuruShots? - GuruShots is currently incurring losses, with stabilization around $150,000 per month, and efforts are underway to evolve it towards break-even [29] Question: What is the outlook for Emojipedia? - The future of Emojipedia is uncertain, with management needing more time to assess the impact of AI developments on its performance [31] Question: What was the impact of restructuring costs on free cash flow? - Restructuring costs included approximately $330,000 in tax withholding payments, which impacted free cash flow for the quarter [35] Question: How much is left in the share buyback program? - There is approximately $600,000 remaining under the current buyback authorization [37]

Financial Data and Key Metrics Changes - The company raised $4.9 million through ATM sales in the third quarter, with reported shares increasing from approximately 14.4 million in Q2 to approximately 21.8 million in Q3, a difference of 7.3 million shares [9][10] Business Line Data and Key Metrics Changes - The drug Serenity was originally approved in April 2022, with two doses approved: 120 micrograms and 180 micrograms [10] Market Data and Key Metrics Changes - There is no specific market data or key metrics changes mentioned in the provided content Company Strategy and Development Direction and Industry Competition - The company is currently in compliance with the minimum bid price requirements at the Nasdaq Capital Market and has proposed a reverse stock split as a precautionary measure to provide additional flexibility for future compliance [8][13] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook in the provided content Other Important Information - The company has approved the appointment of Ernst & Young LLP as its independent registered public accounting firm for the fiscal year ending December 31, 2025 [13] - The advisory vote on the compensation of named executive officers has been approved [13] Q&A Session Summary Question: What was the average cost per share traded, and how many shares did the company sell? - The 14.4 million shares in Q2 were as of the filing date, not the end of the quarter, and the 21.8 million shares in Q3 were also as of the filing date, which is mid-November [9][10] Question: When was the drug Serenity approved, and how many doses have been issued? - The drug was originally approved in April 2022, with two doses approved, and there is no black box warning on the current label [10]

Financial Data and Key Metrics Changes - The company raised $4.9 million through ATM sales in the third quarter, with reported shares increasing from approximately 14.4 million in Q2 to approximately 21.8 million in Q3, a difference of 7.3 million shares [9] - The low trade price during this period was $1.18, which would have returned over $8 million [9] Business Line Data and Key Metrics Changes - The drug SERENITY was originally approved in April 2022, with two doses approved: 120 micrograms and 180 micrograms [10] Company Strategy and Development Direction - The company is currently in compliance with the minimum bid price requirements at the Nasdaq Capital Market and has proposed a reverse stock split as a precautionary measure to provide additional flexibility for future compliance [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's current compliance status and the strategic measures being taken to ensure future flexibility in operations [8] Other Important Information - The company has appointed Ernst & Young LLP as its independent registered public accounting firm for the fiscal year ending December 31, 2025, which has been ratified by stockholders [13] - The advisory vote on the compensation of named executive officers has also been approved [13] Q&A Session Summary Question: Average cost per share traded and number of shares sold - The average cost per share traded was not disclosed, but the company clarified that the share counts reported were as of the filing dates, not the end of the quarters [9] Question: Approval and dosage information for the drug SERENITY - The drug SERENITY was approved in April 2022, with no black box warning on the current label, and two doses are available [10]

Financial Data and Key Metrics Changes - The company raised $4.9 million through ATM sales in the third quarter, with reported shares increasing from approximately 14.4 million in Q2 to approximately 21.8 million in Q3, a difference of 7.3 million shares [9][10] Business Line Data and Key Metrics Changes - The drug Serenity was originally approved in April 2022, with two doses approved: 120 micrograms and 180 micrograms [10] Market Data and Key Metrics Changes - There is no mention of specific market data or key metrics changes in the provided content Company Strategy and Development Direction and Industry Competition - The company is currently in compliance with the minimum bid price requirements at the Nasdaq Capital Market and has proposed a reverse stock split as a precautionary measure to provide additional flexibility for future compliance [8] Management's Comments on Operating Environment and Future Outlook - Management has indicated that they are open to communication with shareholders and are willing to address any questions through their investor relations [10] Other Important Information - The company has approved several proposals during the meeting, including the election of directors and the ratification of Ernst & Young LLP as the independent registered public accounting firm for fiscal year 2025 [13] Q&A Session Summary Question: What was the average cost per share traded, and how many shares did the company sell? - The company clarified that the 14.4 million shares in Q2 were as of the filing date, not the end of the quarter, and that the 21.8 million shares in Q3 were also as of the filing date [9][10] Question: When was the drug Serenity approved, and does it have a black box warning? - The drug Serenity was approved in April 2022, with no black box warning on the current label [10]

Financial Data and Key Metrics Changes - Total debt reduced from approximately $319 million to approximately $120 million, with maturity extended to 2029 [4] - Revenue for Q3 2025 was $87.6 million, up 15.4% year-over-year, and up 8.3% quarter-over-quarter [19] - Adjusted EBITDA for Q3 2025 was $4.3 million or 4.9% of revenue, down from $9.3 million or 12.3% of revenue in Q3 2024 [22] - Free cash flow for Q3 2025 was -$13.6 million, compared to -$3.4 million in Q3 2024 [22] Business Line Data and Key Metrics Changes - Subscription and reserve rental revenue increased by $10.7 million or 16.1% year-over-year in Q3 2025, primarily due to higher average subscribers and average revenue per subscriber [19] - Inventory-related cancellations decreased by nearly 30% year-over-year in Q3 [6] - Revenue per subscriber increased, driven by a price increase and changes to late fee policies [8] Market Data and Key Metrics Changes - Ending active subscribers grew by 12.4% year-over-year, reaching 148,916 [18] - Average active subscribers during Q3 were 147,645, an increase of 12.9% year-over-year [18] - Customer engagement metrics, including Net Promoter Score, visits, and hearts, all showed significant improvement [6][7] Company Strategy and Development Direction - Focus on strategic recapitalization to strengthen the balance sheet and return to growth through inventory strategy and product innovation [4] - Emphasis on improving customer acquisition through organic community-driven channels and enhancing customer experience [12] - Plans to activate community engagement and leverage customer advocacy for growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's improved growth momentum and customer engagement [24] - Anticipated continued strong revenue growth in Q4, with guidance for revenue between $85 million and $87 million [23] - Management highlighted the importance of inventory investment for driving customer satisfaction and growth [17] Other Important Information - The company has nearly doubled its units of inventory purchased this fiscal year, impacting gross margins [17] - The completion of recapitalization transactions provides additional financial flexibility and support for growth plans [18] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Financial Data and Key Metrics Changes - Total debt reduced from approximately $319 million to approximately $120 million, with maturity extended to 2029 [4] - Revenue for Q3 2025 was $87.6 million, up 15.4% year-over-year, and up 8.3% quarter-over-quarter [19] - Adjusted EBITDA for Q3 2025 was $4.3 million or 4.9% of revenue, down from $9.3 million or 12.3% of revenue in Q3 2024 [22] - Free cash flow for Q3 2025 was negative $13.6 million, compared to negative $3.4 million in Q3 2024 [22] Business Line Data and Key Metrics Changes - Subscription and reserve rental revenue increased by $10.7 million or 16.1% year-over-year in Q3 2025, driven by higher average subscribers and average revenue per subscriber [19] - Inventory-related cancellations decreased by nearly 30% year-over-year in Q3 [5] - Revenue per subscriber increased, primarily due to a price increase and changes to late fee policies [8] Market Data and Key Metrics Changes - Ending active subscribers grew by 12.4% year-over-year, reaching 148,916 [18] - Average active subscribers during Q3 were 147,645, an increase of 12.9% year-over-year [18] - Customer engagement metrics such as net promoter score and app visits increased significantly, with average visits per subscriber up 34% year-over-year [6][7] Company Strategy and Development Direction - Focus on strategic recapitalization to strengthen the balance sheet and return to growth through inventory strategy and product innovation [4] - Emphasis on improving customer acquisition through organic community-driven channels and enhancing customer experience [12] - Plans to activate community engagement and leverage customer advocacy for growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's improved growth momentum and customer engagement [24] - Anticipated continued strong revenue growth in Q4 2025, with guidance for revenue between $323.1 million and $325.1 million for fiscal year 2025 [23] - Management acknowledged challenges with cash consumption due to inventory investments but expects improved cash flow generation over time [17] Other Important Information - The company has made significant changes to its app to enhance customer experience, resulting in increased engagement [9] - The introduction of community-driven content and ambassador programs has generated substantial impressions and referrals [13] Q&A Session Summary Question: What are the expectations for revenue growth in Q4? - Management expects revenue to be between $85 million and $87 million for Q4 2025 [23] Question: How is the company managing cash flow amid increased inventory investments? - Management noted that cash consumption has increased due to inventory investments but expects improved cash flow generation in the future [17]