Financial Data and Key Metrics Changes - Revenues for Q3 2025 reached $250 million, exceeding previous guidance and representing approximately 40% year-over-year growth [20] - Earnings per share were $1.50, significantly above the high end of guidance and up 19% from the prior year [21] - Annualized recurring revenue (ARR) grew 47% year-over-year, closing at $849 million [19] - Operating margin was 40%, slightly down from 41% in the previous year [20] Business Line Data and Key Metrics Changes - ShareFile business showed improved net retention rates as customers adopted AI capabilities, contributing to better-than-expected ARR and top-line growth [8] - Other products such as OpenEdge, MarkLogic, Sitefinity, WhatsUp Gold, and DevTools also exceeded expectations, indicating strong performance across the portfolio [9] Market Data and Key Metrics Changes - The demand for AI-related products is driving growth, with customers increasingly looking for solutions that deliver clear ROI [7] - The integration of ShareFile has been successful, with over 3,000 customers using the new AI document assistant [8] Company Strategy and Development Direction - The company emphasizes innovation as a core growth strategy, focusing on delivering AI capabilities across its product lines [10] - M&A remains a key growth strategy, with ongoing evaluations of potential acquisitions in application development, digital experience, and infrastructure management [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand for products driven by customers' AI initiatives, expecting this trend to persist beyond fiscal 2025 [7] - The company plans to maintain disciplined capital allocation, focusing on debt repayment and share repurchases based on market conditions [23][24] Other Important Information - The company repaid $40 million of debt in Q3 and increased its revolver capacity from $900 million to $1.5 billion, enhancing financial flexibility [6][22] - Adjusted free cash flow for the quarter was $74 million, a 29% increase from the previous year [22] Q&A Session Summary Question: AI strategy and its impact on net retention rate and pricing power - Management indicated that AI capabilities are expected to first impact net retention rates, with potential for pricing power through product upgrades [30][32] Question: EBIT guidance and conservatism in outlook - Management clarified that the guidance reflects strong Q3 performance but maintains a conservative approach for Q4, anticipating continued momentum [34][36] Question: Insights from ShareFile integration - Management noted challenges in integration but highlighted positive cultural fit and strong customer reliance on ShareFile products [40][41] Question: Monetization of Agentic RAG product - The initial monetization strategy focuses on cross-selling opportunities within the existing customer base [47] Question: Gross margin performance - Management explained that gross margin improvements are due to better operational efficiencies across SaaS products [49] Question: M&A attractiveness in the context of AI - Management expressed interest in all three business categories for potential acquisitions, emphasizing the growing importance of data platforms and digital experiences [55][56]

Financial Data and Key Metrics Changes - The company generated $844 million of resort reported EBITDA in fiscal 2025, representing a 2% growth compared to the prior year despite a 3% decline in total skier visits across North American resorts [19][20] - Fiscal 2026 guidance expects net income attributable to Vail Resorts to be between $201 million and $276 million, with resort reported EBITDA projected between $842 million and $898 million [20][21] - Season pass sales through September 19, 2025, decreased approximately 3% in units but increased approximately 1% in sales dollars compared to the prior year [22] Business Line Data and Key Metrics Changes - The company is focused on rebuilding lift ticket visitation, which is essential for revenue and long-term growth, and has introduced Epic Friend Tickets to drive lift ticket sales for new guests [11][12] - The pass price reset ahead of the 2021-2022 season has led to a projected increase of over 50% in pass units for fiscal 2026 compared to fiscal 2021 [14][15] Market Data and Key Metrics Changes - The company anticipates growth in fiscal 2026 to be driven by price increases, ancillary capture, and incremental efficiencies related to the Resource Efficiency Transformation Plan, partially offset by lower pass unit sales [22] - The company expects to exceed $100 million in annualized cost efficiencies by the end of fiscal year 2026 [23] Company Strategy and Development Direction - The company is committed to a multi-year strategy aimed at increasing guest visitation and optimizing product and pricing approaches across all resorts [10][11] - The focus is on leveraging strong competitive advantages, including owning and operating 42 resorts, to drive sustained and profitable growth [10][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that results from the past season were below expectations and emphasized the need to adapt to changing consumer preferences [5][6] - The company is confident in its ability to return to higher growth in fiscal year 2027 and beyond, despite current challenges [5][18] Other Important Information - The company plans to invest approximately $198 million to $203 million in core capital before additional growth capital investments in European resorts [24] - A quarterly cash dividend of $2.22 per share has been declared, reflecting strong cash flow generation [29] Q&A Session Summary Question: What is the expectation for visitation this upcoming season? - Management expects total visitation to be down slightly, primarily driven by the decline in pass sales, but anticipates some offset from lift ticket sales [35] Question: How significant is the change in the Buddy Pass system? - The Buddy Pass historically contributes about 7% of total lift revenue and 20% of paid lift ticket revenue, and management expects it to positively impact lift ticket growth this year [60][62] Question: What are the trends for international guests? - There has been no significant trend affecting overall results from international visitation, although it has declined over the past several years for various reasons [82] Question: Where is the company seeing weakness in its consumer base? - The company is experiencing lower renewal rates for less tenured pass holders, but overall performance is consistent across different guest demographics [88][92] Question: What needs to happen to hit the upper end of the guidance range? - The key driver for achieving the upper end of the guidance range is visitation, which impacts all ancillary revenue [95]

Financial Data and Key Metrics Changes - The company generated $844 million of resort reported EBITDA in fiscal 2025, representing a 2% growth compared to the prior year despite a 3% decline in total skier visits across North American resorts [19][20] - Fiscal 2026 guidance expects net income attributable to Vail Resorts to be between $201 million and $276 million, with reported EBITDA projected between $842 million and $898 million [20][21] - Season pass sales through September 19, 2025, decreased approximately 3% in units but increased approximately 1% in sales dollars compared to the prior year [22] Business Line Data and Key Metrics Changes - The company is focused on rebuilding lift ticket visitation, which is essential for revenue and long-term growth, and has introduced Epic Friend Tickets to drive sales [11][12] - The pass price reset ahead of the 2021-2022 season has led to a projected increase of over 50% in pass units for fiscal 2026 compared to fiscal 2021 [14] Market Data and Key Metrics Changes - The company anticipates growth in fiscal 2026 to be driven by price increases, ancillary capture, and normalized weather conditions in Australia, partially offset by lower pass unit sales [22] - The company has seen a broad-based result in performance across different guest demographics, indicating potential market maturity [91] Company Strategy and Development Direction - The company is committed to a multi-year strategy aimed at leveraging competitive advantages to drive sustained and profitable growth [10][17] - A new Chief Revenue Officer will be appointed to focus on driving all aspects of revenue for the company, reflecting a strategic shift in leadership [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that results from the past season were below expectations and emphasized the need to adapt marketing strategies to evolving consumer preferences [5][6] - The company is confident in its ability to return to higher growth in fiscal year 2027 and beyond, despite current challenges [5][18] Other Important Information - The company plans to invest approximately $198 million to $203 million in core capital for fiscal 2026, with additional investments in European resorts and real estate projects [24][25] - The company declared a quarterly cash dividend of $2.22 per share, reflecting strong cash flow generation [29] Q&A Session All Questions and Answers Question: What is the expectation for visitation this upcoming season? - Management expects total visitation to be down slightly, primarily driven by the decline in pass sales, but anticipates some recovery through lift ticket sales [35] Question: How significant is the change in the pricing strategy for passes? - Management indicated that a more strategic approach to pricing will be taken, focusing on individual pass products rather than a blanket approach [41] Question: What is the expected impact of the Epic Friend Tickets on visitation? - Management expects the Epic Friend Tickets to contribute positively to visitation, although the full impact will take time to materialize [37][65] Question: How does the company view the impact of international guests on sales? - Management does not see any significant trends affecting international visitation that would materially impact overall results [84] Question: What are the trends in consumer behavior regarding renewals? - Management noted that while there is a lower renewal rate for less tenured passholders, overall trade-up and trade-down behaviors remain consistent [93]

Financial Data and Key Metrics Changes - The company generated $844 million of resort reported EBITDA in fiscal 2025, representing a 2% growth compared to the prior year despite a 3% decline in total skier visits across North American resorts [19][20] - Fiscal 2026 guidance expects net income attributable to Vail Resorts to be between $201 million and $276 million, with reported EBITDA projected between $842 million and $898 million [20][21] - Season pass sales through September 19, 2025, decreased approximately 3% in units but increased approximately 1% in sales dollars compared to the prior year [22] Business Line Data and Key Metrics Changes - The company is focused on rebuilding lift ticket visitation, which is essential for revenue and long-term growth, and has introduced Epic Friend Tickets to drive lift ticket sales for new guests [11][12] - The pass price reset ahead of the 2021-2022 season exceeded expectations, with pass units expected to be up over 50% in fiscal 2026 compared to fiscal 2021 [14][15] Market Data and Key Metrics Changes - The company anticipates growth in fiscal 2026 to be driven by price increases, ancillary capture, and normalized weather conditions in Australia, partially offset by lower pass unit sales [21][22] - The Resource Efficiency Transformation Plan is expected to exceed $100 million in annualized cost efficiencies by the end of fiscal 2026 [23] Company Strategy and Development Direction - The company aims to enhance guest engagement through modern marketing channels and increase media investment to drive awareness and visitation [13][14] - A new Chief Revenue Officer will be appointed to focus on driving all aspects of revenue for the company, reflecting a strategic shift in leadership [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that results from the past season were below expectations and emphasizes the need to adapt to changing consumer preferences [5][6] - The company is committed to a multi-year strategy to unlock its full potential, focusing on guest visitation and optimizing product and pricing approaches [10][11] Other Important Information - The company plans to invest approximately $198 million to $203 million in core capital for the year, with additional growth capital investments planned for European resorts [24][25] - The company declared a quarterly cash dividend of $2.22 per share, reflecting strong cash flow generation [29] Q&A Session All Questions and Answers Question: What is the expectation for visitation this upcoming season? - The company expects total visitation to be down slightly, primarily driven by the decline in pass sales, but anticipates some offset from lift ticket sales [34] Question: How significant is the change in the pricing strategy for passes? - The company is considering a more strategic approach to pricing, focusing on individual pass products rather than a blanket approach [40][41] Question: What is the expected impact of the Epic Friend Tickets on visitation? - The company expects Epic Friend Tickets to positively impact visitation, although the full benefits will take time to materialize [64] Question: How does the company view the impact of Park City disruptions on visitation? - Management views the disruptions as a tailwind for the upcoming season, expecting improved guest experiences [70] Question: What are the trends in international guest visitation? - There has been no significant shift in international visitation trends that would materially affect overall results [84] Question: Where is the company seeing weaknesses in its consumer base? - The company notes a broad-based performance across different demographics, with lower renewal rates for less tenured passholders [90][93]

Financial Data and Key Metrics Changes - Fiscal Year 2025 marked a transformative year for the company, moving from development to commercial readiness, with a robust after-tax NPV of $725 million and a 19% project IRR confirmed by the pre-feasibility study [2][3] - The after-tax NPV is approximately $469 million with a 16% project IRR, and free cash flow over the life of the mine is estimated at roughly $3.7 billion pre-tax [4] Business Line Data and Key Metrics Changes - The company successfully qualified its high-purity boric acid with 14 customers across various industries, indicating strong demand for U.S.-based boron supply [5][6] - Phase one targets 130,000 short tons per year of boric acid, with all-in sustaining costs estimated at $555 per ton and initial capital at about $435 million [4] Market Data and Key Metrics Changes - The company noted a significant supply chain risk in the boron market, particularly due to disruptions from major producers, which has created a clear opportunity for new market entrants [10][11] - The second largest boric acid producer in the U.S. has seen costs increase approximately 60% since 2017, highlighting the need for new production sources [10] Company Strategy and Development Direction - The company is focused on advancing towards a final investment decision (FID) by mid-2026, with early FEED engineering activities already commenced [8][9] - The company aims to build a strong and resilient boric supply chain to support the U.S. industrial base for generations [20] Management's Comments on Operating Environment and Future Outlook - Management emphasized the fundamental need for a new market producer in the boron sector, especially in light of supply shortfalls expected to begin in 2026 [11] - The company is optimistic about progressing full-scale testing with multiple specialty glass manufacturers and securing additional qualifications and initial offtake agreements [11] Other Important Information - The company received a non-binding LOI from USXM for a potential $285 million project debt facility, which is a significant step towards funding phase one construction [3] - The company has submitted a formal response to the U.S. Geological Survey draft critical minerals list, advocating for boron to be included [9] Q&A Session Summary Question: Can you review the comments you had about the disruption to the California boron mine? - Management explained that Rio Tinto has streamlined its business structure, placing its industrial minerals segment under strategic review, which includes borates [15] Question: To get boron on the U.S. Geological Survey critical minerals list, what needs to happen in terms of the review? - Management indicated that public comments are essential for the review process, and they submitted their comments along with other groups during the 30-day public comment window [16][17]

Financial Data and Key Metrics Changes - The company reported a record quarterly revenue of $6.2 million for Q4 2025, up from $4.2 million in the previous quarter and $4.7 million in Q4 2024, leading to an annualized run rate of approximately $25 million [5][22] - For the fiscal year 2025, total revenue was flat at $19.1 million compared to the prior year, masking the transition from an engineering-focused business to a manufacturing enterprise [22][24] - Gross margins for Q4 2025 were 13%, compared to 10% in the prior quarter and 22% in Q4 2024, with annual gross margins at 18%, down from 30% in the previous year [24][27] Business Line Data and Key Metrics Changes - Production revenue reached $5.1 million in Q4 2025, up from $3.3 million in the prior quarter and $2.8 million in the year-ago quarter, while engineering revenue decreased to $1.1 million from $1.9 million year-over-year [22][24] - The systems manufacturing business is expected to grow at least 75% in fiscal 2026, driven by the expansion of two major production programs [14][21] - Revenue from the micro-optics lab is projected to drop from $2.1 million in fiscal 2025 to $1.3 million in fiscal 2026 due to timing of a large defense customer reorder [24] Market Data and Key Metrics Changes - The company anticipates fiscal 2026 revenues to reach approximately $25 million, an increase of over 30% compared to $19 million in 2025, primarily driven by the systems manufacturing business [21][22] - The backlog for the aerospace program has reached nearly $9 million, indicating strong demand and future revenue potential [10] Company Strategy and Development Direction - The company is focusing on transitioning programs from development to production, with expectations of two to three programs moving to production each year over the next two years [14][15] - Investments have been made in facilities and talent to support growth, including relocating headquarters to Littleton, Massachusetts, and hiring new operational staff [7][19] - The long-term margin goal remains at 40%, with expectations of improved gross margins in fiscal 2026 due to better manufacturing yields and reduced low-margin revenue [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing a strong production backlog and the sustainability of higher revenue levels [29] - The company is addressing gross margin challenges and expects significant recovery in fiscal 2026, with gross margins projected at approximately 30% [21][24] - Management highlighted the importance of learning from production challenges and improving operational efficiency as the company matures [29] Other Important Information - The company has recently hired a new Chief Operating Officer with extensive experience in medical device production to enhance operational performance [20] - Tariff reimbursement agreements are in progress, which are expected to positively impact margins [18][41] Q&A Session Summary Question: Guidance on revenue for 2026 - Management acknowledged being conservative in their revenue guidance for 2026, noting a decrease in revenue from the micro-optics lab due to timing of orders [34][35] Question: Medical program pricing adjustments - The client has agreed to cover higher costs due to initial production difficulties, with a plan to ramp down prices as issues are resolved [39][40] Question: Tariff reimbursements - Management confirmed verbal agreements on tariff reimbursements, with documentation pending [41][42] Question: Engineering resources and project pipeline - Engineering resources are expected to be progressively filled throughout 2026, with several programs already lined up for development [48][49] Question: Challenges in the second single-use program - The second single-use program is progressing well, with lessons learned from the cystoscope program aiding in smoother ramp-up [61][63]

Financial Data and Key Metrics Changes - Fiscal Year 2025 marked a transformative year for the company, transitioning from development to commercial readiness, with a robust after-tax NPV of $725 million and a 19% project IRR confirmed in the pre-feasibility study [2][3] - The after-tax NPV is approximately $469 million with a 16% project IRR, and free cash flow over the life of the mine is estimated at roughly $3.7 billion pre-tax [4] Business Line Data and Key Metrics Changes - The company successfully qualified its high-purity boric acid with 14 customers across various industries, including specialty glass and ceramics, indicating strong demand for U.S.-based boron supply [5][6] - Phase one targets 130,000 short tons per year of boric acid, with all-in sustaining costs estimated at $555 per ton and initial capital at about $435 million [4] Market Data and Key Metrics Changes - The company highlighted a significant supply chain risk in the U.S. boron market, with the second-largest boric acid producer experiencing a 60% cost increase since 2017 [10] - The market is characterized as an oligopoly, with the U.S. potentially transitioning from a net exporter to a net importer of boron without new investments [10] Company Strategy and Development Direction - The company is focused on advancing towards a final investment decision (FID) by mid-2026, with early FEED engineering activities already commenced [8][9] - The company aims to build a strong and resilient boric supply chain to support the U.S. industrial base for future generations [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamental need for a new market producer due to anticipated supply shortfalls beginning in 2026 [11] - The company is actively engaging with the U.S. Geological Survey to advocate for boron to be added to the critical minerals list, which is seen as essential for addressing supply chain concerns [10][18] Other Important Information - The company received a non-binding LOI from USXM for a potential $285 million project debt facility, a significant step towards funding phase one construction [3] - The company is in long-term offtake discussions and has completed logistics trials with a tier one specialty glass manufacturer [7] Q&A Session Summary Question: Can you review the comments you had about the disruption to the California boron mine? - Management noted that Rio Tinto announced a strategic review of their industrial minerals segment, which includes borates, following a restructuring [16] Question: What needs to happen to get boron on the U.S. Geological Survey critical minerals list? - Management explained that public comments were submitted during a 30-day window following the release of the draft list, with expectations for boron to be included [17][18]

Financial Data and Key Metrics Changes - The company reported a record quarterly revenue of $6.2 million for Q4 2025, compared to $4.2 million in the prior quarter and $4.7 million in Q4 2024, leading to an annualized run rate of approximately $25 million [6][26] - For the fiscal year 2025, total revenue was flat at $19.1 million compared to the previous year, masking the transition from an engineering-focused business to a manufacturing enterprise [26] - Gross margins for Q4 2025 were 13%, up from 10% in Q3 but down from 22% in Q4 2024, with annual gross margins at 18% compared to 30% in the prior year [28][29] Business Line Data and Key Metrics Changes - Production revenue reached $5.1 million in Q4 2025, up from $3.3 million in the prior quarter and $2.8 million in the year-ago quarter, while engineering revenue was $1.1 million, down from $1.9 million year-over-year [26] - The systems manufacturing business is expected to grow at least 75% in fiscal 2026, driven by the expansion of two major production programs [17][24] - Revenue from the micro-optics lab is projected to decline from $2.1 million in fiscal 2025 to $1.3 million in fiscal 2026 due to timing of a large defense customer reorder [27] Market Data and Key Metrics Changes - The company anticipates revenue for fiscal 2026 to reach approximately $25 million, driven largely by the systems manufacturing business, which is forecasted to increase from $8.3 million in fiscal 2025 to $14.5 million in fiscal 2026 [24][27] - The aerospace program's revenue increased significantly, with Q4 revenue for this program reaching nearly $2 million, and a backlog of nearly $9 million [11][12] Company Strategy and Development Direction - The company has moved its headquarters to Littleton, Massachusetts, to support growth and access a broader engineering talent pool [9][10] - Investments are being made in facilities and personnel to enhance production capabilities and address operational challenges [21][22] - The company aims for long-term gross margins of 40% and expects to recover positive adjusted EBITDA in fiscal 2026 [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing a strong production backlog and the transition of major programs from development to production [33] - The company is addressing gross margin challenges and expects substantial recovery in fiscal 2026, with improved manufacturing yields and better pass-through of tariffs [19][24] Other Important Information - The company has hired a new Chief Operating Officer with extensive experience in medical device production to enhance operational efficiency [22][23] - Tariff costs in Q4 2025 were approximately $180,000, impacting gross margins, but agreements for tariff reimbursement are being finalized with major customers [20][21] Q&A Session Summary Question: Guidance on revenue for 2026 - Management acknowledged being conservative in their revenue guidance for 2026, noting a decrease in revenue from the micro-optics lab due to timing of orders [37] Question: Medical program pricing adjustments - The customer agreed to cover higher initial production costs, with a negotiated step-down in pricing as production stabilizes [40] Question: Tariff reimbursements - Management confirmed verbal agreements for tariff reimbursements, with no risks associated with documentation [41] Question: Engineering resources and project pipeline - Engineering resources are expected to be progressively filled throughout 2026, with multiple programs lined up for production [46] Question: Challenges in the second single-use program - The second single-use program is progressing well, with lessons learned from the cystoscope program aiding in smoother ramp-up [52]

Financial Data and Key Metrics Changes - The company reported revenues of $250 million for Q3 2025, exceeding previous guidance and representing approximately 40% year-over-year growth [21][26] - Earnings per share for Q3 were $1.50, up $0.24 or 19% compared to the prior year quarter, driven by the addition of ShareFile [22] - Annualized recurring revenue (ARR) reached $849 million, reflecting a 47% year-over-year growth [20][26] - Operating margin was 40%, slightly down from 41% in the year-ago quarter [21] Business Line Data and Key Metrics Changes - The ShareFile business showed improved net retention rates as customers adopted AI capabilities, contributing to better-than-expected ARR and top-line growth [9][10] - Other products such as OpenEdge, MarkLogic, Sitefinity, WhatsUp Gold, and DevTools also exceeded expectations, indicating strong performance across the portfolio [10] Market Data and Key Metrics Changes - The company experienced solid market demand, particularly for products related to AI initiatives, which are driving customer investments [5][7] - The integration of ShareFile has been successful, with over 3,000 customers using the new AI document assistant [9] Company Strategy and Development Direction - Innovation is a foundational pillar of the company's growth strategy, with a focus on delivering AI capabilities across products [11] - The company is actively pursuing M&A opportunities, particularly in the areas of application and development platforms, digital experience, and infrastructure management [18][54] - The company aims to leverage AI to enhance customer experiences and operational efficiencies [12][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand for products driven by customer AI initiatives, expecting this trend to persist beyond fiscal 2025 [7][19] - The company plans to maintain disciplined capital allocation, focusing on debt repayment and share repurchases based on market conditions [25][27] Other Important Information - The company repurchased $15 million of its shares in Q3, with a total of $65 million repurchased year-to-date [6][25] - The board authorized an increase in share repurchase authorization by $200 million, bringing the total to $242 million [25] Q&A Session Summary Question: AI strategy and its impact on net retention rate and pricing power - Management indicated that AI capabilities are expected to first impact monthly recurring revenue (MRR) and net retention rates, with potential for indirect pricing opportunities through product upgrades [29][34] Question: EBIT guidance and conservatism in outlook - Management clarified that the guidance reflects strong Q3 results and maintains expectations for Q4, emphasizing confidence in the overall performance [36][38] Question: Surprises from ShareFile acquisition - Management noted challenges in integration but highlighted positive aspects such as strong team engagement and customer reliance on ShareFile [40][43] Question: Monetization of Agentic RAG product - The initial monetization strategy focuses on cross-selling opportunities with existing products, while also targeting new customers [46][47] Question: M&A environment and SaaS opportunities - Management expressed interest in acquiring both SaaS and non-SaaS companies, noting a reduced hesitancy towards SaaS acquisitions following the ShareFile experience [52][55]

Financial Data and Key Metrics Changes - The company generated $844 million of resort reported EBITDA in fiscal 2025, representing a 2% growth compared to the prior year despite a 3% decline in total skier visits across North American resorts [18] - Fiscal 2026 guidance expects net income attributable to Vail Resorts to be between $201 million and $276 million and reported EBITDA to be between $842 million and $898 million [19][20] - Season pass sales through September 19, 2025, decreased approximately 3% in units but increased approximately 1% in sales dollars compared to the prior year [20] Business Line Data and Key Metrics Changes - The company is focused on rebuilding lift ticket visitation, which is essential for revenue and long-term growth, and is enhancing lift ticket offerings and pricing strategies [10][11] - The introduction of Epic Friend Tickets aims to drive lift ticket sales for new guests and convert them into future pass purchases [10][11] Market Data and Key Metrics Changes - The company anticipates growth in fiscal 2026 to be driven by price increases, ancillary capture, and incremental efficiencies related to the Resource Efficiency Transformation Plan, partially offset by lower pass unit sales [20][21] - The Resource Efficiency Transformation Plan is expected to exceed $100 million in annualized cost efficiencies by the end of fiscal 2026 [21] Company Strategy and Development Direction - The company is committed to a multi-year strategy to unlock its full potential, focusing on guest engagement, marketing channel adaptation, and enhancing the guest experience [8][10] - The company plans to evaluate all aspects of its pass portfolio, including product offerings and pricing, to optimize overall lift access revenue growth [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that results from the past season were below expectations and emphasized the need to adapt to changing consumer preferences [4][5] - The company is confident in its ability to return to higher growth in fiscal year 2027 and beyond, leveraging its competitive advantages and data infrastructure [16][17] Other Important Information - The company plans to invest approximately $198 million to $203 million in core capital before additional growth capital investments in European resorts [23] - The company declared a quarterly cash dividend of $2.22 per share, reflecting strong cash flow generation [28] Q&A Session Summary Question: What is the expectation for visitation for the upcoming season? - Management expects total visitation to be down slightly, primarily driven by the decline in pass sales, but anticipates some offset from lift ticket sales [34] Question: How significant is the change in pricing strategy for passes? - Management indicated that a more strategic approach to pricing will be taken, focusing on individual pass products rather than a blanket approach [40][41] Question: What is the expected impact of the Epic Friend Tickets on visitation? - Management expects Epic Friend Tickets to positively impact visitation, although the full benefits will take time to materialize [35][60] Question: How does the company view the impact of international guests on pass sales? - Management noted that while international visitation has declined over the years, it does not see this as a major issue affecting overall results [72] Question: What are the trends in consumer behavior regarding pass renewals? - Management observed lower renewal rates for less tenured passholders but noted that overall trends are consistent across different guest demographics [76][78]