Financial Data and Key Metrics Changes - Total company revenue for Q3 2025 was $1.281 billion, reflecting a year-over-year growth of 6% [10][11] - Adjusted EBITDA for Q3 was $243 million, up 7% year-over-year, with an adjusted EBITDA margin of 19%, representing a sequential increase of 400 basis points [14][15] - Adjusted cash flow from operations was $161 million, with adjusted free cash flow at $87 million, indicating strong cash flow generation [14][15] Business Line Data and Key Metrics Changes - Vision Care revenue for Q3 was $736 million, increasing by 6%, driven by growth in both consumer and contact lenses [10][11] - Pharmaceuticals segment revenue was $330 million, representing a 7% increase, with MIEBO generating $84 million, a 71% year-over-year increase [13][14] - Surgical segment revenue was $215 million, a 1% increase, with premium IOLs showing a 27% constant currency revenue growth [12][14] Market Data and Key Metrics Changes - The U.S. branded RX business in pharmaceuticals grew by 13%, while the international pharmaceuticals business was up 12% [13][14] - The contact lens market is expected to grow in the mid-single digits, with the company outpacing market growth [38][80] - The company reported a 9% growth in the U.S. contact lens market and a 4% growth internationally [12][14] Company Strategy and Development Direction - The company is focused on three core pillars: Selling Excellence, Operational Excellence, and Disruptive Innovation, with the addition of a fourth pillar, Financial Excellence [6][27] - The strategy aims to deliver sustained, profitable growth through innovation and operational efficiency, with a strong emphasis on cash flow optimization [7][10] - Upcoming product launches and innovations are expected to drive future growth, particularly in the dry eye treatment market [8][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the dry eye market, with MIEBO and XIIdra leading the way [18][104] - The company anticipates continued revenue growth and margin expansion, supported by disciplined cost management and operational improvements [15][29] - The management is closely monitoring tariff impacts and believes they can mitigate potential negative effects [16][78] Other Important Information - The company is maintaining its full-year revenue guidance at $5.05 billion to $5.15 billion, representing constant currency growth of approximately 5% to 7% [15][16] - Adjusted gross margin for Q3 was 61.7%, reflecting a 130 basis points decrease year-over-year, primarily due to product mix and the Invista IOL recall [13][14] Q&A Session Summary Question: Commentary on Financial Excellence pillar - The Financial Excellence pillar focuses on ensuring every dollar spent drives growth and efficiency, emphasizing disciplined execution and resource allocation [26][27] Question: Insights on contact lens market share - The company has been growing faster than the industry, attributing this to new product innovations and effective execution [38][39] Question: MIEBO and combination therapy - MIEBO's TRx growth of 110% indicates strong market potential, and combination therapies are seen as a way to enhance treatment efficacy [44][49] Question: Surgical business and Invista IOL recovery - The Invista IOL platform has shown impressive recovery, with sales reaching 82% of pre-recall levels, and the company is regaining momentum in premium IOLs [58][60] Question: Sustainability of SG&A leverage - The company aims for sustainable SG&A improvements while balancing reinvestment in growth opportunities [61][62] Question: Tariff impact and market growth outlook - The company is monitoring tariff impacts closely and believes it can manage potential challenges while maintaining a positive growth outlook [78][80]

Financial Data and Key Metrics Changes - Reported revenue for Q3 2025 was $1.62 billion, down 5% year-over-year on an organic basis, primarily due to weaker performance in the Lab segment [12][21] - Adjusted EBITDA margin was 16.5%, with adjusted EPS for the quarter at $0.22, reflecting a $0.04 decline year-over-year [12][13] - Free cash flow was $172 million, with an adjusted conversion rate of 124% [13][15] - Adjusted gross profit was $527 million, representing a 32.4% adjusted gross margin, a decline of 100 basis points year-over-year [12][13] Business Line Data and Key Metrics Changes - Laboratory Solutions revenue was $1.1 billion, down 5% organically year-over-year, below expectations [16][21] - Bioscience production revenue was $527 million, down 4% organically year-over-year, at the low end of expectations [18][21] - Adjusted operating income for Laboratory Solutions was $124 million, with an 11.3% margin, impacted by lower volumes and related absorption [18][21] - Adjusted operating income for bioscience production was $128 million, representing a 24.2% margin, also down year-over-year due to lower volumes [20][21] Market Data and Key Metrics Changes - The market backdrop in the Lab segment is largely stable, but customer activity remains lower than expected due to ongoing end market uncertainty related to basic research funding [16][17] - The company faced competitive pressures, particularly in the Lab services business, leading to share losses [18][44] - The U.S. Federal government shutdown is expected to exacerbate challenges in the academic and government sectors, impacting revenue guidance [93] Company Strategy and Development Direction - The company is initiating a turnaround strategy called "Avantor Revival," focusing on five key pillars: go-to-market strategy, manufacturing and supply chain investment, portfolio scrutiny, cost savings, and talent improvement [27][28][30][33] - A $500 million share repurchase program has been authorized to demonstrate confidence in the company's long-term value [11][26] - The company aims to simplify operations and empower frontline staff to better meet customer needs [10][27] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with current results but emphasized confidence in the fixability of the issues faced [27][39] - The company expects full-year organic revenue growth to be negative 3.5% to negative 2.5%, with reported revenue growth anticipated to be negative 4% to negative 3% [21][22] - Management is committed to improving both top-line and bottom-line performance through operational efficiency and strategic investments [90] Other Important Information - The company took a $785 million impairment charge related to goodwill associated with its Lab distribution business, reflecting ongoing margin headwinds [14][15] - Adjusted net leverage ended the quarter at 3.1 times adjusted EBITDA, down from Q2, as strong cash generation allowed for net debt reduction [15][26] Q&A Session Summary Question: What is the confidence level in fixing the current declines? - Management expressed confidence that the issues are fixable, emphasizing the need for better communication and execution [37][39] Question: Can the business grow in 2026? - Management is taking a fresh look at the numbers for 2026 and will provide updates once a clearer understanding is achieved [40] Question: How to address share losses and competitive dynamics? - Management acknowledged share losses but noted that no key customer accounts have been lost recently, indicating potential for growth in existing accounts [44][46] Question: What are the steps to simplify operations? - Management plans to decentralize decision-making and empower local teams to improve customer engagement and service levels [49][50] Question: Why is now the right time for a stock buyback? - Management believes the current share price does not reflect the company's long-term value and aims to demonstrate commitment to its turnaround strategy [76][78] Question: What are the expectations for the academic and government market? - Management anticipates continued challenges in this sector due to the government shutdown and other market pressures [92][93]

Financial Data and Key Metrics Changes - For the third quarter, net sales decreased by 3%, and in local currency, excluding the Kichler divestiture, sales decreased by 2% [8][14] - Operating profit was $312 million, with an operating profit margin of 16.3% [8][15] - Earnings per share for the quarter was $0.97 [8][15] - Gross margin was 34.6%, impacted by higher tariffs and commodity costs [14][15] - The company anticipates adjusted earnings per share for 2025 to be in the range of $3.90-$3.95, down from a previous expectation of $3.90-$4.10 [11][23] Business Line Data and Key Metrics Changes - Plumbing sales increased by 1% in local currency, driven by favorable pricing [8][15] - North American plumbing sales increased by 1%, with Delta Faucet showing strong performance, particularly in e-commerce and trade [8][15] - Decorative Architectural segment sales decreased by 12%, or 6% excluding the Kichler divestiture [9][10] - Total paint sales decreased in low single digits, with DIY paint sales down mid-single digits [10][17] - Operating profit for the plumbing segment was $204 million, with an operating margin of 16.4% [9][16] - Operating profit for the Decorative Architectural segment was $128 million, with an operating margin of 19.1% [9][10] Market Data and Key Metrics Changes - International plumbing sales were in line with the prior year in local currency, with growth in many European markets but challenges in China [9][16] - The U.S. and international repair and remodel markets are expected to decrease low single digits in 2025 [20][21] - The company expects its overall sales in 2025 to decrease low single digits, impacted by the Kichler divestiture [21][22] Company Strategy and Development Direction - The company aims to unlock opportunities through strong execution, strategic investments, and innovative product introductions [7][12] - Focus on maintaining agility in response to macroeconomic uncertainties and rising costs [11][12] - The company is committed to capital deployment, returning $188 million to shareholders through dividends and share repurchases [11][19] Management's Comments on Operating Environment and Future Outlook - Management noted that near-term market conditions remain a headwind, but the company continues to focus on execution to grow market share [8][12] - The structural factors for repair and remodel activity are strong, including the age of housing stock and high home equity levels [12][13] - Management expressed confidence in the company's ability to navigate dynamic environments and deliver long-term value for shareholders [13][14] Other Important Information - The company generated strong free cash flow during the quarter and maintained a solid balance sheet, with gross debt to EBITDA at 2x [11][18] - The total annualized cost impact of tariffs is estimated to be approximately $270 million, with ongoing efforts to mitigate these costs [20][21] Q&A Session Questions and Answers Question: How might a competitor's price increase influence the company's outlook for pricing? - Management indicated that they have a long-standing relationship with The Home Depot, which allows for price-cost neutrality over time, and they do not expect significant pricing increases in the coming year [25][27] Question: What is the long-term impact of tariffs on plumbing margins? - Management noted that they are actively working to mitigate tariff impacts through sourcing changes, cost reductions, and pricing strategies, aiming to offset the dollar cost of tariffs and restore margins over time [28][30] Question: What were the drivers behind the Q3 results? - Management identified three main drivers: tariffs, overall industry softness, and incremental costs related to commodity inputs and inventory reserves [34][35] Question: Can you elaborate on the builders' hardware business performance? - Management explained that the builders' hardware business faced softness in sales due to a planned shipping process change, but they do not expect a significant impact for the full year [37][39] Question: What is the expected impact of inventory reserves on plumbing? - Management stated that adjustments to inventory reserves were larger than typical this quarter due to the overall market environment and slow industry sales, impacting margins [101][102]

Financial Data and Key Metrics Changes - Third quarter net revenues were $931 million, an increase of more than 2% from $910 million in the year-ago period [16] - Adjusted EBITDA was $168 million compared to $171 million in the year-ago period, reflecting improved results in all operating segments [17] - Adjusted EPS was $0.42 versus $0.41 in the year-ago period, reflecting lower interest costs and tax initiatives [17] Business Line Data and Key Metrics Changes - Retail revenue of $864 million increased 1% compared to the third quarter of 2023, with retail volume growing 1% excluding foam products [16] - Reynolds Wrap retail sales were up 7%, with volumes outperforming the category [9] - Hefty brand, a nearly $2 billion brand, continues to lead in the scented waste bag segment, driving growth in the waste bag category [11][12] Market Data and Key Metrics Changes - The operating environment remains challenging, with low and middle-income consumers under pressure and retailers facing cost inflation [8] - The company noted that inflation remains above the Fed's target, impacting consumer sentiment negatively [34] Company Strategy and Development Direction - The company is focusing on innovation and revenue growth management to drive share gains and profitability [39] - New leadership, including a Chief Commercial Officer and Chief Operations Officer, is expected to enhance operational capabilities and drive growth [14][39] - The company is investing in high-return projects to support growth and improve margins [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the promotional environment and addressing consumer pressures [31][34] - The company anticipates a flat to down 1% revenue outlook for the full year compared to 2024, with adjusted EBITDA guidance of $655 million to $665 million [19] - Management highlighted the importance of maintaining cost discipline and leveraging U.S.-centric manufacturing advantages [8][19] Other Important Information - The company is making progress in managing manufacturing, supply chain, and SG&A costs while driving market share [7] - New product innovations, such as Reynolds Kitchens Air Fryer Liners, have been recognized for their growth potential [10] Q&A Session Summary Question: How do you see the setup for the important holiday season in terms of promotional intensity and consumer behavior? - Management noted increased promotional activity in waste and food bags but feels confident in navigating the environment, with Hefty Waste Bags outperforming the category [31][32][34] Question: Why did you flag the risk of retailers shifting store brands to other suppliers? - Management indicated that economic challenges and tariff uncertainties could lead retailers to seek value through private label business, but they expect to win more than they lose as a U.S.-centric manufacturer [35] Question: Can you discuss the long-term strategy related to operational capabilities and growth? - Management emphasized the focus on innovation, revenue growth management, and driving additional share at the customer level as key components of their strategy [39][40] Question: What is the outlook for the tableware business and foam headwinds? - Management stated that foam headwinds are expected to lessen next year, and they are pleased with how profitability is being managed despite volume declines [45] Question: Can you comment on the promotional impact in the Hefty Waste and Storage segment? - Management acknowledged increased promotional intensity but highlighted that their promotional activity aligns with overall company levels, contributing to strong performance [48] Question: What is the current state of consumer behavior and its impact on Reynolds Cooking and Baking? - Management noted modest tailwinds from increased cooking at home but also acknowledged the impact of rising prices in the marketplace [66]

Fulcrum Therapeutics (NasdaqGM:FULC) Q3 2025 Earnings Call October 29, 2025 08:00 AM ET Company ParticipantsAlan Musso - CFOIain Fraser - SVP of Clinical DevelopmentAlex Sapir - CEO and PresidentMatthew Biegler - Managing DirectorTazeen Ahmad - Managing DirectorConference Call ParticipantsCorinne Johnson - Equity Research AnalystAndres Maldonado - Senior Biotechology AnalystKristen Kluska - Equity Research AnalystEdward Tenthoff - Biotech Equity Research AnalystJoseph P. Schwartz - Senior Research AnalystLu ...

Financial Data and Key Metrics Changes - Total adjusted revenue for Q3 2025 grew 1% to $4.9 billion, while adjusted operating income decreased 7% to $1.8 billion, resulting in an adjusted operating margin of 37%, a decrease of 320 basis points [36] - Year-to-date adjusted revenue grew 5% to $14.9 billion, and adjusted operating income grew 5% to $5.7 billion, maintaining an adjusted operating margin of 38.2% [36] - Adjusted EPS for Q3 was $2.04, down 11% from $2.30 in the prior year [36] Business Line Data and Key Metrics Changes - Merchant Solutions segment organic revenue growth was 5% for the quarter and 7% year-to-date, with adjusted revenue growth also at 5% [38] - Financial Solutions segment organic revenue declined 3% in the quarter but grew 3% year-to-date, negatively impacted by lower periodic license revenue [42] - Clover revenue grew 26% in Q3, with GPV growth of 8% reported, and 11% excluding the 2023-2024 gateway conversion [39][40] Market Data and Key Metrics Changes - Argentina contributed over 5 percentage points to the company's 12% organic growth rate in 2023 and roughly 10 percentage points to the 16% organic growth in 2024 [9] - Excluding Argentina, the overall organic revenue growth rate was in the mid-single digits for both 2023 and 2024 [9] Company Strategy and Development Direction - The company is shifting its strategic focus to prioritize sustainable, client-focused opportunities, which may negatively impact near-term results but is expected to position the company for predictable growth [4] - The "One Fiserv" action plan includes investments in client-first operations, enhancing Clover as a small business operating platform, and leveraging AI for operational excellence [22][24] - The company aims to return to consistent mid-single-digit revenue growth beyond 2026, with potential for acceleration over time [6][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that recent performance issues were largely self-inflicted and are being addressed through investment and operational focus [14] - The company is confident in its ability to generate double-digit adjusted EPS growth starting in 2027, supported by disciplined capital allocation and strong free cash flow generation [33][54] Other Important Information - The company announced several leadership changes, including new Co-Presidents and a new CFO, to enhance execution and collaboration across business units [27][28] - Three acquisitions were announced during the quarter, focusing on client service and stablecoin growth opportunities [46] Q&A Session Summary Question: How long was Fiserv over earning with deferred investments and short-term initiatives? - Management indicated that the analysis revealed a need for recalibration and that the company is focused on addressing self-inflicted issues to return to double-digit EPS growth [48][50] Question: What changed in the Financial Solutions segment's growth trajectory? - Management noted that while the segment faced challenges, it remains fundamentally strong, with actions taken to ensure competitive positioning [57][68] Question: Is Clover's expected revenue growth a proxy for next year? - Management expressed confidence in Clover's growth trajectory and competitive positioning, indicating that adjustments have been made to align with long-term business needs [73]

Financial Data and Key Metrics Changes - The company achieved 4% net sales growth in Q3 2025, with 3% organic daily sales growth and 11% growth in adjusted EBITDA compared to the prior year [5][14]. - Adjusted EBITDA for the quarter increased 11% to $127.5 million, with an adjusted EBITDA margin improvement of 60 basis points to 10.1% [16][28]. - Net income attributable to the company increased 33% to $59 million due to net sales growth, improved gross margin, and SG&A leverage [27]. Business Line Data and Key Metrics Changes - Organic sales volume grew 2% during Q3, with maintenance-related demand remaining steady and achieving 3% organic daily sales growth in agronomic products [14][25]. - Landscaping products also saw a 3% increase in organic daily sales, driven by sales initiatives and improved pricing [14][25]. - Acquisition sales contributed approximately $13 million or 1% to net sales growth [26]. Market Data and Key Metrics Changes - The company estimates an 18% share of the fragmented $25 billion wholesale landscape products distribution market, indicating significant long-term growth opportunities [8]. - Seven out of nine regions achieved positive organic daily sales growth in Q3, although sales in Sun Belt states like Texas were weaker due to softness in new residential construction [25][41]. Company Strategy and Development Direction - The company aims to leverage its scale and resources to deliver superior value to customers and suppliers while focusing on organic growth and acquisitions [9][10]. - The acquisition strategy is expected to continue filling in product lines and expanding geographic reach, with a focus on smaller companies [13][38]. - The company plans to consolidate or close 15-20 branches to optimize its footprint and cost structure [45]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in driving continued performance and growth despite softer end markets heading into 2026 [6][41]. - The outlook for the fourth quarter includes expectations for low single-digit organic daily sales growth, with continued focus on SG&A leverage and adjusted EBITDA margin expansion [44][45]. - Management noted that the repair and upgrade market has begun to stabilize, providing a more optimistic outlook for future growth [60]. Other Important Information - The company has completed over 100 acquisitions since 2014, adding more than $2 billion in acquired revenue, demonstrating the strength of its acquisition strategy [12]. - The effective tax rate for Q3 was 20.4%, down from 26.2% in the prior year, primarily due to increased excess tax benefits from stock-based compensation [27]. Q&A Session Summary Question: Why is the charge not excluded from adjusted EBITDA guidance? - The company maintains strict guidelines for adjusted EBITDA, which primarily reflect acquisitions and adjustments within the first year [50]. Question: What is the pricing realization in agronomic vs. landscape products? - Pricing for landscape products was up 1%, while agronomic products were flat, with expectations for fourth-quarter pricing between 1% and 2% [51][53]. Question: Are you seeing positive organic sales growth in October? - Yes, positive organic sales growth has been observed in October, although the fourth quarter is a tougher comp due to weather impacts [59]. Question: Any changes in competitor behavior due to demand softness? - The company has not seen unusual competitor behavior, although competition naturally increases in softer markets [67]. Question: Will branch closures affect the ability to serve a recovering market? - The company believes it can fully serve a stronger market with its current network and has the capacity to add associates as needed [70]. Question: What is the outlook for input inflation in commodities? - The company does not anticipate major swings in input inflation for commodities, as this is embedded in their guidance [74]. Question: Will there be a focus on shareholder returns if the M&A market remains soft? - The company is committed to investing in the business first, but being at the low end of the leverage range may lead to increased share repurchases [102].

Financial Data and Key Metrics Changes - The company reported a 2% increase in organic sales growth, achieving a record high Q3 EPS of $2.13, reflecting a 5% year-over-year increase in adjusted EPS [5][6][14]. - The adjusted EPS increase was driven by solid sales improvement and aggressive cost management [6][14]. - The company completed approximately $150 million in share repurchases and paid $160 million in dividends, totaling $1.2 billion delivered to shareholders year to date [14]. Business Line Data and Key Metrics Changes - The performance coatings segment delivered double-digit organic sales growth in aerospace coatings and protective and marine coatings, while automotive refinish saw a double-digit percentage decline in organic sales [6][10][11]. - The industrial coatings segment experienced a 4% increase in sales volumes, with automotive OEM coatings growing by 8% [13][14]. - The global architectural coatings segment saw mid-single-digit organic sales growth in Mexico, but lower volumes in Europe impacted overall performance [7][8]. Market Data and Key Metrics Changes - Organic sales grew in the U.S. and Canada by a low single-digit percentage, marking the third consecutive quarter of year-over-year increases in this region [6][8]. - Sales volumes in Latin America and Asia Pacific increased, while Europe remained flat [6][8]. - The company expects stronger retail sales and modest recovery in project-related spending in Mexico for the fourth quarter [8][16]. Company Strategy and Development Direction - The company is focused on driving consistent organic sales and earnings growth, even in a challenging macroeconomic environment [15][17]. - Significant investments are being made in aerospace and protective and marine coatings to capture growth opportunities, with over $0.5 billion allocated for these initiatives [12][13]. - The company aims to maintain its competitive edge through technology-differentiated products and customer productivity solutions [17]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the normalization of collision claims by mid-2026, which is expected to positively impact the automotive refinish business [20][22]. - The macroeconomic environment remains challenging, with expectations of continued uncertainty in global trade affecting customer spending [27][30]. - The company anticipates a softer first half of 2026, but is optimistic about organic growth momentum and cost management efforts [30][31]. Other Important Information - The company has consistently delivered price growth in architectural coatings for nine consecutive years, demonstrating strong brand value [7][8]. - The aerospace business has grown at a mid-single-digit CAGR over the past decade and is expected to continue this trend [11][12]. - The company is actively managing its supply chain and procurement strategies to mitigate inflation impacts on raw materials [72][73]. Q&A Session Summary Question: Concerns about the refinish business decline - Management acknowledged the decline in the refinish business due to destocking and normalization of collision claims, but expressed confidence in the productivity solutions driving market share gains [19][20][21]. Question: Outlook for volume growth and market performance - Management indicated that while the macro environment remains challenging, there are signs of stabilization in several markets, and the company is focused on organic growth and cost management [26][27][30]. Question: Changes in full-year guidance - The reduction in Q4 guidance was primarily attributed to the unexpected decline in the refinish business and distributor destocking [34][35]. Question: Architectural coatings performance - Management highlighted that soft demand in key European markets is impacting architectural coatings, but aggressive cost actions are being taken to manage the situation [38][41]. Question: M&A environment and strategy - The company remains open to M&A opportunities but emphasizes organic growth as the primary focus, looking for the right assets at the right price [88][90][91].

Blackbaud (NasdaqGS:BLKB) Q3 2025 Earnings Call October 29, 2025 08:00 AM ET Company ParticipantsKirk Materne - Senior Managing Director of Software Equity ResearchChad Anderson - EVP and CFOBrian Peterson - Financial AdvisorMatthew Kikkert - Equity Research AssociateTom Barth - Head of Investor RelationsMike Gianoni - CEO, President, and Vice ChairmanConference Call ParticipantsRob Oliver - Managing Director and Software Research AnalystOperatorGood day and welcome to Blackbaud's third quarter 2025 earning ...

Financial Data and Key Metrics Changes - Total adjusted revenue for Q3 grew 1% to $4.9 billion, while adjusted operating income decreased 7% to $1.8 billion, resulting in an adjusted operating margin of 37%, a decrease of 320 basis points [36] - Year-to-date adjusted revenue grew 5% to $14.9 billion, and adjusted operating income grew 5% to $5.7 billion, maintaining an adjusted operating margin of 38.2% [36] - Adjusted EPS for Q3 was $2.04, down 11% from $2.30 in the prior year [36] Business Line Data and Key Metrics Changes - Merchant Solutions segment organic revenue growth was 5% for the quarter and 7% year-to-date, with adjusted revenue growth also at 5% [38] - Financial Solutions segment organic revenue declined 3% in Q3 but grew 3% year-to-date, impacted by lower periodic license revenue [42][44] - Clover revenue grew 26% in Q3, with GPV growth of 8% reported, and 11% excluding the 2023-2024 gateway conversion [39][17] Market Data and Key Metrics Changes - Argentina contributed over 5 percentage points to the company's 12% organic growth rate in 2023 and roughly 10 percentage points to the 16% organic growth in 2024 [9] - The organic growth rate in Argentina was 56% year-to-date, adding approximately 2 percentage points to the overall organic growth rate of just over 5% [9] Company Strategy and Development Direction - The company is shifting its strategic focus to prioritize sustainable, client-focused opportunities, which may negatively impact near-term results but is expected to position the company for predictable growth [4][6] - The "One Fiserv" action plan includes investments in client-first operations, enhancing Clover as a small business operating platform, and leveraging AI for operational excellence [22][24] - The company aims to return to consistent mid-single-digit revenue growth with potential for acceleration over time, targeting double-digit adjusted EPS growth starting in 2027 [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that recent performance issues were largely self-inflicted and are being addressed through investment and operational improvements [14][53] - The company is confident in its ability to generate free cash flow and maintain a disciplined capital allocation strategy, which supports long-term growth [54] - Management emphasized the importance of aligning structural growth with sustainable revenues and expenses, moving away from short-term initiatives [14][13] Other Important Information - The company announced several leadership changes, including new Co-Presidents and a new CFO, to drive the strategic initiatives forward [27][28] - Three acquisitions were made during the quarter to enhance client service and expand into new markets, including the acquisition of Smith Consulting Group [46] Q&A Session Summary Question: How long was Fiserv over earning with deferred investments and short-term initiatives? - Management indicated that the analysis revealed a need for recalibration and that the company is focused on addressing self-inflicted issues to return to double-digit EPS growth [50][52] Question: What changed specifically in the Financial Solutions segment? - Management noted that the segment experienced a decline due to lower periodic license revenue and emphasized the strength of the issuing business and ongoing investments to improve performance [57][68] Question: Is Clover's 10% revenue growth a decent proxy for next year? - Management expressed confidence in Clover's growth trajectory and highlighted ongoing investments to enhance competitive positioning across Merchant Solutions [73]