Financial Data and Key Metrics Changes - For the full year 2025, the company generated $79 million in revenue, representing a 159% year-over-year increase [13] - Gross profit reached $20 million, up 437% year-over-year, with gross margin improving to 25.4%, an increase of 13 percentage points from 12.2% in 2024 [17] - Adjusted net loss for the full year was $250 million, with the adjusted net loss margin narrowing significantly as commercialization advanced [17] Business Line Data and Key Metrics Changes - Revenue from AI-native products reached $53 million, up 143% year-over-year, while revenue from the open platform was around $26 million, up 198% year-over-year [13] - The company served more than 236 million users across over 200 countries and regions, including 214,000 enterprise customers and developers [14] - Revenue from international markets accounted for more than 70% of total revenue in 2025, with international revenue representing over 50% of total revenue for the open platform [15] Market Data and Key Metrics Changes - Average daily token consumption across the M2 tech model series was more than 6 times the level recorded in December 2025, with token consumption from coding plans growing by more than tenfold [9] - The company has seen strong traction in international markets since the release of M2.5, attracting significant inbound interest from new global customers [15] Company Strategy and Development Direction - The company aims to evolve from a large model company into a platform company for the AI era, focusing on defining and advancing new intelligence paradigms [19][20] - Strategic priorities include enhancing software development capabilities, improving workplace productivity, and advancing multimodal creation [18] - The company is committed to building next-generation models (M3 series) and establishing clear model differentiation [28] Management's Comments on Operating Environment and Future Outlook - Management believes that intelligence levels will advance significantly in 2026, with expectations of AI becoming a colleague-level collaborator in software development [18] - The company anticipates a meaningful increase in demand for its platform, with token volume likely to grow by one to two orders of magnitude [19] - Management expressed confidence in becoming a core builder of the AI platform ecosystem, supported by strong growth momentum [20] Other Important Information - The company has established a model coverage across video, speech, and music, with significant advancements in each area [10][11] - Internal AI agent interns now support nearly 90% of employees, enhancing organizational efficiency and feedback loops for product and technology development [56][58] Q&A Session Summary Question: How does MiniMax define an AI era platform company? - Management explained that the AI market is not zero-sum and that unique, differentiated innovation can create market fit, allowing MiniMax to become a platform company [25][26] Question: Will focusing on cross-modality hinder R&D development? - Management emphasized that integrating modeling modalities is essential for improving intelligence and that their approach has already validated this trend [32][35] Question: How should we view the transformation of programming intelligence? - Management clarified that L4 and L5 levels of intelligence represent significant advancements, with a focus on collaboration and innovation in programming tasks [39][40] Question: Is the explosive growth in token consumption a one-time dividend or a long-term trend? - Management views this growth as the beginning of a long-term trend, supported by proactive preparations for emerging market opportunities [49][51] Question: What insights have been gained from the deployment of internal agent interns? - Management noted that the use of AI agents has improved organizational workflows and informed R&D priorities for future model iterations [56][58]

Financial Data and Key Metrics Changes - For the full year 2025, the company generated $79 million in revenue, representing a 159% year-over-year increase [11] - Gross profit reached $20 million, up 437% year-over-year, with gross margin improving to 25.4%, an increase of 13 percentage points from 12.2% in 2024 [14] - Adjusted net loss for the year was $250 million, but the adjusted net loss margin narrowed significantly as commercialization advanced [15] Business Line Data and Key Metrics Changes - Revenue from AI-native products reached $53 million, up 143% year-over-year, while revenue from the open platform was around $26 million, up 198% year-over-year [11] - The average daily token consumption across the M2 tech model series was more than six times the level recorded in December 2025, with token consumption from coding plans growing by more than tenfold [6] Market Data and Key Metrics Changes - As of December 31, 2025, the company had served more than 236 million users across over 200 countries and regions, with international markets accounting for more than 70% of total revenue [12] - Revenue from international markets represented over 50% of total revenue for the open platform, indicating strong traction in global markets [12] Company Strategy and Development Direction - The company aims to evolve from a large model company into a platform company for the AI era, focusing on defining and advancing new intelligence paradigms [17][18] - Strategic priorities include enhancing software development capabilities, improving workplace productivity, and advancing multimodal content generation [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in becoming a core builder of the AI platform ecosystem, highlighting the acceleration of the AI industry and breakthroughs in model capabilities [18] - The company anticipates significant advancements in intelligence levels in 2026, with expectations for AI to transition from a tool to a colleague-level collaborator [16] Other Important Information - The company has established a model coverage across video, speech, and music, with significant advancements in each area [9] - The internal use of AI agents has improved organizational efficiency, with nearly 90% of employees supported by AI intern agents [40] Q&A Session Summary Question: How does MiniMax define an AI era platform company? - Management emphasized that the AI market is not zero-sum and that unique, differentiated innovation can create market fit, allowing MiniMax to become a platform company [20] Question: Will focusing on cross-modality hinder R&D development? - Management clarified that integrating modeling modalities is essential for improving intelligence and that their approach is designed to achieve greater breakthroughs [24][25] Question: How does MiniMax view the transformation of programming intelligence? - Management explained that L4 to L5 levels of intelligence represent significant advancements, with expectations for office productivity to replicate the rapid progress seen in coding [29] Question: Is the explosive growth in token consumption a one-time event? - Management views the growth as the beginning of a long-term trend, supported by proactive preparations for high-impact market opportunities [36] Question: What insights have been gained from the internal use of AI agents? - Management noted that the deployment of AI agents has accelerated feedback loops and improved organizational workflows, allowing for clearer R&D priorities [41][43]

Financial Data and Key Metrics Changes - The company reported a strong finish to 2025, achieving underlying revenue growth of 5.3% and free cash flow of $840 million, a 52.5% increase year-on-year [1][3] - Trading profit for the full year was $1.2 billion, reflecting a 160 basis points margin expansion to 19.7% [17][20] - Adjusted earnings per share grew by 21% to $1.02, driven by a $500 million share buyback [18][19] Business Line Data and Key Metrics Changes - Orthopedics grew by 5.1%, Sports Medicine and ENT by 5.2%, and Advanced Wound Management by 5.6%, all on an underlying basis [15][16] - The joint repair business surpassed $1 billion in revenue for the first time, driven by products like REGENETEN and Q-FIX [11][12] - Advanced Wound Management grew 2.8% in Q4, with Advanced Wound Care growing 4.4% [13][14] Market Data and Key Metrics Changes - U.S. growth was 5.6%, other established markets 7.2%, and emerging markets 6.4%, with underlying growth excluding China at 7.2% [7][16] - The company expects continued growth in orthopedics, sports medicine, and Advanced Wound Management, particularly in AWC and AWD [27][28] Company Strategy and Development Direction - The company is transitioning to a new RISE strategy aimed at accelerating growth and improving returns, building on the previous 12-Point Plan [4][31] - The acquisition of Integrity Orthopaedics is expected to enhance the sports medicine portfolio and drive growth in biomechanical repair [33][34] - The company plans to increase R&D investment and maintain a robust product launch pipeline, with expectations of launching 16 new products in 2026 [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving around 6% organic revenue growth in 2026, with trading profit growth expected to be around 8% [20][29] - The impact of China VBP on joint repair is expected to be less significant moving forward, with management anticipating a bounce in sports business in China [72][75] - The company aims to maintain a focus on organic growth and capital allocation towards high-value clinical segments [68][69] Other Important Information - The company achieved a 15-fold increase in free cash flow and a 170 basis points increase in ROIC from 6.6% to 8.3% [6][25] - The company expects to face extraordinary headwinds in 2026, including inventory revaluation and changes to reimbursement in the U.S. AWM business [20][21] Q&A Session Summary Question: Can you break down revenue guidance for 2026 and expectations for market growth? - Management indicated that 2026 revenue growth is expected to be around 6%, with contributions from all business units and innovation driving growth [48][49] Question: What is the expected phasing of revenue growth through the quarters? - Management expects Q1 to be softer due to one fewer trading day, with growth in the first half around 4.5%-5% and stronger growth in Q3 and Q4 [53][54] Question: What is the outlook for joint repair in China? - Management confirmed that joint repair growth in China has annualized, and they expect a bounce in sports business while AET and ENT will have a limited negative impact [64][75]

Financial Performance - The company reported a strong finish to 2025, achieving underlying revenue growth of 5.3% and free cash flow of $840 million, a 52.5% increase year-on-year [1][3][15] - Trading profit for the full year was $1.2 billion, reflecting a 160 basis points margin expansion to 19.7% [17][20] - Adjusted earnings per share grew by 21% to $1.02, driven by a $500 million share buyback [18][19] Business Unit Performance - Orthopedics grew 7.9% on an underlying basis, with strong performance in hips and trauma, while U.S. knee growth improved following the launch of LEGION MS [7][8][10] - Sports medicine and ENT grew 7.3%, with joint repair surpassing $1 billion in revenue for the first time, driven by REGENETEN and Q-FIX [11][12] - Advanced Wound Management grew 2.8%, with Advanced Wound Care growing 4.4% [13][15] Market Performance - U.S. growth was 5.6%, with other established markets at 7.2% and emerging markets at 6.4% [7] - Excluding China, underlying growth was 7.2%, indicating strong performance across various regions [16] Company Strategy and Industry Competition - The company is transitioning to a new RISE strategy aimed at accelerating growth and improving returns, building on the previous 12-Point Plan [4][31] - The acquisition of Integrity Orthopaedics is expected to enhance the sports medicine portfolio and drive growth in biomechanical repair [33][35] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving around 6% organic revenue growth for 2026, with trading profit growth expected to be around 8% [20][29] - The impact of China VBP on joint repair is expected to be less significant moving forward, with management anticipating a bounce in sports business in China [72][75] Other Important Information - The company achieved a 15-fold increase in free cash flow and a 170 basis points increase in ROIC to 8.3% [6][25] - The company plans to maintain a dividend ratio of 35%-40% and consider buybacks subject to leverage targets [27] Q&A Session Summary Question: Can you break down revenue guidance for 2026 and expectations for market growth? - Management indicated that 2026 revenue growth is expected to be around 6%, with innovation contributing significantly to this growth [48][49] Question: What is the outlook for joint repair in China? - Management confirmed that joint repair growth in China has annualized, and the impact of VBP will be less significant moving forward [64][75] Question: How does M&A impact bottom line growth? - Management emphasized that M&A, such as the acquisition of Integrity, is aimed at scaling in areas of strength and is expected to be accretive in the long term [68][69]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported underlying revenue growth of 5.3%, with all three business units growing by over 5% [1][15] - Free cash flow increased to $840 million, a 52.5% year-on-year growth, enabling a $500 million share buyback program [3][26] - Trading profit for the full year was $1.2 billion, reflecting a 160 basis points margin expansion to 19.7% [17][20] Business Line Data and Key Metrics Changes - Orthopedics grew 7.9% on an underlying basis, with strong performance in hips and trauma, while U.S. knee growth improved following the launch of LEGION MS [8][9] - Sports medicine and ENT grew 7.3%, driven by double-digit growth in joint repair, surpassing $1 billion in revenue for the first time [12][13] - Advanced Wound Management grew 2.8%, with Advanced Wound Care growing 4.4% [14][15] Market Data and Key Metrics Changes - U.S. growth was 5.6%, other established markets grew 7.2%, and emerging markets grew 6.4% [7] - Excluding China, underlying growth was 7.2%, indicating strong performance in other markets despite challenges in China [16][17] Company Strategy and Development Direction - The company is transitioning to a new RISE strategy aimed at accelerating growth and improving returns, building on the previous 12-Point Plan [4][31] - The acquisition of Integrity Orthopaedics is expected to enhance the sports medicine portfolio and drive growth in biomechanical repair [33][35] - The company aims for more than 20% margin in orthopedics by 2030, supported by initiatives like the Ortho360 operating model [3][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving around 6% organic revenue growth for 2026, with trading profit growth expected to be around 8% [4][28] - The impact of China VBP is expected to be less significant in 2026, with management anticipating a flat performance in greater China sales compared to 2025 [70][73] - The company is focused on innovation, with over 60% of growth in 2025 coming from products launched in the last five years [2][16] Other Important Information - The company achieved a 240 basis points trading margin expansion from 17.3% in 2022 to 19.7% in 2025, despite facing headwinds from VBP in China and inflation [5][19] - The company plans to maintain a dividend ratio of 35%-40% and consider buybacks subject to leverage targets [27] Q&A Session Summary Question: Can you break down revenue guidance for 2026 and the impact of new product launches? - Management indicated that growth will be driven by multiple sources, with innovation contributing significantly, and expects around 6% growth for 2026 [48][49] Question: What is the outlook for joint repair in China? - Management confirmed that joint repair growth in China has annualized, and they expect a balanced portfolio to drive growth without the previous VBP drag [63][74] Question: How does M&A impact bottom line growth? - Management emphasized that M&A, like the acquisition of Integrity, is aimed at scaling in areas of strength and will complement existing products, enhancing overall growth potential [66][68]

Financial Data and Key Metrics Changes - For the full year 2025, the company generated net income of $123.1 million, or $0.71 per share, compared to a net loss of approximately $1.4 billion in 2024 [14] - Consolidated core net income was $149.3 million or $0.86 per share, compared to core income from continuing operations of $124.3 million or $0.98 per share in 2024 [15] - Utility core net income for the year was $177.5 million compared to $180.7 million in 2024, driven by higher O&M expenses and other factors [15] Business Line Data and Key Metrics Changes - The utility's core net income decreased due to higher operational expenses, including deferred consulting and legal fees, and higher interest expenses [15] - The holding company reported a core net loss of $28.2 million, an improvement from a loss of $56.4 million in 2024, attributed to lower interest expenses and higher interest income [15] Market Data and Key Metrics Changes - The utility achieved a 37% renewable portfolio standard (RPS) in 2025, remaining on track to meet the 40% RPS requirement by 2030 [8][9] - Customer bills remained stable in 2025 despite significant investments in wildfire safety and resilience [9] Company Strategy and Development Direction - The company is focused on advancing key initiatives related to wildfire safety, legislative measures, and financial stability in the face of severe weather events [4][7] - The company plans to submit a joint rebasing proposal with Ulupono Initiative by March 6, 2026, aiming for a non-traditional rate rebasing process [10][11] - The company is pursuing low-cost financing options to reduce impacts on customers from critical investments required for safety and resilience [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the path ahead, highlighting progress made in key initiatives and the importance of resolving outstanding appeals related to the tort settlement [12][14] - The company anticipates making its first $479 million settlement payment in the second half of 2026, contingent on resolving outstanding appeals [17] Other Important Information - The company successfully issued $500 million in utility debt and increased its revolver to $600 million to support financial flexibility [8] - An executive transition is planned, with Scott DeGhetto resigning as CFO effective April 2, 2026, and Paul Ito returning to the role [12][13] Q&A Session Summary Question: What are the chances the Hawaii Supreme Court will take up the insurers' appeal? - Management noted that the only remaining item is the appeal, and previous decisions by the courts have been supportive of the settlements [21] Question: What are the latest thoughts on financing the second settlement payment? - Management indicated a preference for convertible debt for financing and stated that no financing would occur until after the settlement is approved [22][23] Question: How much of the $250 million ATM program will be used for financing? - Management stated that the ATM program is available for opportunistic use, depending on market conditions [24] Question: What is the timing for the divestment of the remaining stake in American Savings Bank? - Management confirmed plans to divest the remaining 9.9% stake in 2026, subject to market conditions [25] Question: What are the key elements in the upcoming PBR rebasing proposal? - Management highlighted the focus on inflationary adjustments, PIM redesign, and ensuring targets are within the company's control [31][32] Question: What are the milestones for the Wildfire Recovery Fund and liability cap process? - Management outlined that the PUC rulemaking process for the liability cap is expected to take 18-24 months, with critical milestones tied to this process [41][42]

Financial Data and Key Metrics Changes - For the full year 2025, the company generated net income of $123.1 million, or $0.71 per share, compared to a net loss of approximately $1.4 billion in 2024 [17] - Consolidated core net income was $149.3 million or $0.86 per share, compared to core income from continuing operations of $124.3 million or $0.98 per share in 2024 [18] - Utility core net income for the year was $177.5 million compared to $180.7 million in 2024, driven by higher O&M expenses and other factors [18] Business Line Data and Key Metrics Changes - The utility's financial performance was impacted by higher operational and maintenance expenses, primarily due to previously deferred consulting and legal fees, and higher interest expenses [18] - The holding company reported a core net loss of $28.2 million, an improvement from a loss of $56.4 million in 2024, attributed to lower interest expenses and higher interest income [18] Market Data and Key Metrics Changes - The company achieved a 37% renewable portfolio standard (RPS) in 2025, remaining on track to meet the 40% statutory RPS requirement by 2030 [10][11] - Customer bills remained stable in 2025 despite significant investments in wildfire safety and resilience [11] Company Strategy and Development Direction - The company is focused on advancing key initiatives related to wildfire safety, including the Maui wildfire tort settlement and legislative measures to support community safety [5][9] - The company plans to submit a joint rebasing proposal with Ulupono Initiative by March 6, 2026, aiming for a non-traditional rate rebasing process [12] - The company is pursuing low-cost financing options to mitigate impacts on customers from necessary investments in safety and resilience [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting progress made in key initiatives and the importance of resolving outstanding appeals related to the tort settlement [15] - The company anticipates making its first $479 million settlement payment in the second half of 2026, contingent on resolving outstanding appeals [20] Other Important Information - The company successfully issued $500 million in utility debt and increased its revolver to $600 million, enhancing financial flexibility [10] - An executive transition is planned, with Scott DeGhetto resigning as CFO effective April 2, 2026, and Paul Ito returning to the role [15] Q&A Session Summary Question: What are the chances the Hawaii Supreme Court will take up the insurers' appeal? - Management indicated that the only remaining item is the appeal, with no briefing scheduled yet, and expressed cautious optimism based on previous supportive decisions from the courts [24] Question: What are the latest thoughts on financing the second settlement payment? - Management stated that they are leaning towards convertible debt for financing and will wait until after the settlement is approved to raise funds [25][26] Question: How much of the $250 million ATM program will be used for financing? - Management confirmed that the ATM program is available for opportunistic use, depending on market conditions [27] Question: What is the timing for the divestment of the remaining stake in American Savings Bank? - Management plans to divest the remaining 9.9% stake in 2026, subject to market conditions [28] Question: What key elements will be included in the upcoming PBR rebasing proposal? - Management highlighted the focus on inflationary adjustments, PIM redesign, and ensuring targets are achievable within their control [33][34] Question: What are the critical milestones for the Wildfire Recovery Fund and liability cap process? - Management outlined that the PUC rulemaking process for the liability cap is expected to take 18-24 months, with no immediate legislative actions planned [42][43]

Financial Data and Key Metrics Changes - For the full year 2025, the company generated net income of $123.1 million, or $0.71 per share, compared to a net loss of approximately $1.4 billion in 2024 [14] - Consolidated core net income was $149.3 million or $0.86 per share, compared to core income from continuing operations of $124.3 million or $0.98 per share in 2024 [15] - Utility core net income for the year was $177.5 million compared to $180.7 million in 2024, driven by higher O&M expenses [15] - The holding company core net loss was $28.2 million compared to $56.4 million in 2024, attributed to lower interest expense and higher interest income [15] Business Line Data and Key Metrics Changes - The utility's financial performance was impacted by higher operational and maintenance expenses, primarily due to previously deferred consulting and legal fees, and higher interest expense [15] - The company achieved a 37% renewable portfolio standard (RPS) in 2025, remaining on track to meet the 40% by 2030 statutory requirement [8] Market Data and Key Metrics Changes - The company has approximately $16 million and $486 million of unrestricted cash on hand at the holding company and utility levels, respectively [16] - The holding company has approximately $530 million in combined liquidity available under its ATM program and credit facility capacity [16] Company Strategy and Development Direction - The company is focused on advancing key initiatives post-Maui wildfires, including wildfire safety improvements and legislative measures to support community resilience [4] - The company plans to submit a joint rebasing proposal with Ulupono Initiative by March 6, 2026, aiming for a non-traditional rate rebasing process [10] - The company is pursuing low-cost financing options to reduce impacts on customers from critical investments required for safety and resilience [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the path ahead, highlighting significant progress made in 2025 and the importance of resolving outstanding appeals related to the tort settlement [12][14] - The company anticipates making its first $479 million settlement payment in the second half of 2026, contingent on resolving outstanding appeals [17] Other Important Information - The company successfully issued $500 million in utility debt last year, enhancing financial flexibility and liquidity [8] - An executive transition is planned, with Scott DeGhetto resigning as CFO effective April 2, 2026, and Paul Ito returning to the role [12] Q&A Session Summary Question: Can you discuss the latest appeal by the insurers? - Management noted that the only remaining item is the appeal regarding the summary judgment that dismissed the insurers' claims, with no briefing scheduled yet [20][21] Question: What are your thoughts on financing the second settlement payment? - Management indicated a preference for convertible debt for financing, with plans to wait until after the settlement is approved before raising funds [22][23] Question: How do you plan to use the ATM program for financing? - Management stated that the ATM program is available for opportunistic use, depending on market conditions [24] Question: What is the status of the divestment of the remaining stake in American Savings Bank? - The company intends to divest the remaining 9.9% stake in 2026, subject to market conditions [25] Question: What are the key elements in the upcoming PBR rebasing proposal? - Management highlighted the focus on inflationary adjustment factors, PIM redesign, and expanding the scope of the Exceptional Project Recovery Mechanism [30][31] Question: What are the milestones for the Wildfire Recovery Fund? - Management indicated that the PUC rulemaking process for the liability cap is expected to take 18-24 months, with critical milestones tied to this process [39][40]

Financial Data and Key Metrics Changes - The company reported normalized funds from operation (FFO) of $0.46 per diluted share for Q4 2025 and $1.72 per diluted share for the full year, representing a 22% year-over-year growth in FFO per share compared to 2024 [22][23] - Total portfolio same-store NOI growth was 11.8% in Q4 and 14.2% for the full year 2025, marking the second consecutive year of double-digit growth [10][22] - The debt to EBITDA improved by nearly a full turn in 2025, indicating a stronger financial position [22][25] Business Line Data and Key Metrics Changes - The operating portfolio, including Trilogy and SHOP segments, contributed 76.9% of consolidated cash NOI, with Trilogy's same-store NOI increasing by 14% in Q4 and 18.4% for the full year [11][12] - SHOP segment same-store NOI increased by 24.6% in Q4 and 25.2% for the full year compared to the previous year [13] - Occupancy rates for Trilogy reached 90.6% in Q4, up 275 basis points year-over-year, while SHOP also surpassed 90% occupancy [12][13] Market Data and Key Metrics Changes - The company closed over $950 million in new investments in 2025, primarily in the SHOP segment, which is now the second-largest in terms of cash NOI [16][17] - The investment pipeline remains robust with over $230 million in awarded deals, indicating strong market activity [19][60] Company Strategy and Development Direction - The company maintains a disciplined investment strategy focused on high-quality care and superior health outcomes, with no changes in capital allocation or risk management frameworks [8][21] - The emphasis on high-quality care is expected to drive demand as the aging population grows, positioning the company well for future growth [12][18] - The company is actively pursuing development projects primarily focused on Trilogy expansions, aiming for attractive yields with limited market risk [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another year of double-digit same-store NOI growth in 2026, supported by strong occupancy levels and pricing discipline [12][13] - The leadership transition is described as seamless, with no changes in strategy, ensuring continuity in operations and execution [6][8] - The company anticipates that the demand for high-quality care will continue to grow, providing a favorable environment for its operations [12][18] Other Important Information - The company has been actively involved in off-market acquisitions, leveraging strong relationships with operators to secure favorable deals [82] - The revenue management system is being piloted with various operators, aiming to enhance pricing strategies and improve overall performance [50][51] Q&A Session Summary Question: Can you dive deeper into the acquisition environment? - The company continues to focus on higher acuity SHOP assets, which provide long-term stability [29][30] Question: Can you provide guidance on SHOP's performance? - The company expects a significant increase in pricing power as occupancy rates rise, with a conviction in future growth [35][36] Question: What are the expectations for Trilogy's occupancy and quality mix? - Trilogy's model allows for various drivers of NOI growth, with a focus on shifting to higher payor sources [39][40] Question: How is the revenue management system being rolled out? - The revenue management system is being tested with select operators, aiming to enhance their performance [50][51] Question: What is the status of the investment pipeline? - The pipeline is dynamic, with a high level of deal activity and a focus on off-market opportunities [60][61]

Financial Data and Key Metrics Changes - In 2025, Endeavour Silver produced 11 million ounces of silver equivalent metal, a 48% increase compared to 2024 [5] - The company reported record revenue of $468 million, up 115% from 2024, with cost of sales at $385 million and mine operating earnings of $83 million [7] - Cash costs increased to $19 per ounce of payable silver, primarily due to changes in the production profile [7] Business Line Data and Key Metrics Changes - In Q4 2025, Endeavour produced 2 million ounces of silver and 14,000 ounces of gold, totaling just shy of 4 million silver equivalent ounces, representing a 146% increase compared to Q4 2024 [6] - Excluding Coba and Terronera, production increased by 27% compared to the same period last year [6] Market Data and Key Metrics Changes - Silver and gold prices have seen exceptional gains, with gold trading above $5,000 and silver above $90, reflecting ongoing confidence in precious metals [4] - The company is well-positioned to benefit from current silver prices, indicating substantial runway remaining in this cycle [4] Company Strategy and Development Direction - Endeavour Silver's strategic initiatives include the acquisition of Kolpa, achieving commercial production at Terronera, and advancing the Pitarrilla development asset [4][5] - The company plans to invest $68 million in Pitarrilla in 2026, focusing on exploration and technical studies [12] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of security events in Mexico on operations, emphasizing the safety of employees as a top priority [3] - The company anticipates a substantial reduction in direct operating costs as it transitions to liquefied natural gas in Q2 2026 [8] Other Important Information - As of December 31, 2025, the company's cash position was $215 million, providing financial strength to advance strategic initiatives [10] - The company expects to achieve improved cost efficiency at Kolpa as its plant expands to 2,500 tons per day [11] Q&A Session Summary Question: Can you discuss the mill availability and electrical interruptions at Terronera? - Management confirmed improvements in January and February, with stabilization in throughput and recovery rates [16][17] Question: What is the guidance on grades at Terronera for 2026? - Management indicated a gradual increase in grades throughout the year, with higher grades expected in the second half [24] Question: How will costs at Terronera drop in 2026? - Management expects costs to decrease as one-time expenditures are reduced and operational efficiencies are realized [56][60] Question: What changes in security protocols have been implemented at Terronera? - Management stated that while there will be increased presence around transportation lines, no dramatic changes in security costs are anticipated [65] Question: What is the status of the Bolanitos sale and its accounting impact? - The sale closed on January 15, and an accounting gain is anticipated in Q1 [70] Question: What are the permitting timelines for Pitarrilla? - Management aims for a Q1 2027 permit for the tailings storage facility, with ongoing work on engineering and permitting [84][87]