Financial Data and Key Metrics Changes - Overall company revenue decreased approximately 1% year over year in Q3 2025, with significant non-cash impairment charges impacting financial results [6][9][30] - GAAP EPS were reported at $0.56, while adjusted EPS, excluding impairment charges, was $1.22 [9][30] - Gross profit was $111.1 million in Q3 2025, compared to $112.7 million in Q3 2024, with a gross profit margin of 9.2% [24][25] Business Line Data and Key Metrics Changes - Heavy haul service revenue increased by 17% year over year, with heavy haul revenue per load up 9% and volume up 8% [7][19] - Non-truck transportation service revenue decreased by 1% year over year, but increased by approximately 16% when excluding prior year fraud-related revenue [21] - Transportation logistics segment revenue decreased by 0.6% year over year, with consumer durables revenue down approximately 4% [22] Market Data and Key Metrics Changes - The freight environment in Q3 2025 was characterized by soft demand, with truck capacity readily available and market conditions favoring shippers [10][34] - Revenue hauled on behalf of other truck transportation companies was down 17% year over year, indicating spare capacity in the market [24] - The number of loads hauled via truck in October 2025 was approximately 3% below October 2024, with revenue per load flat year over year [34] Company Strategy and Development Direction - The company is focused on strategic growth initiatives and continuous improvement in service levels [8][10] - A decision was made to actively market Landstar Metro for sale, with plans for a potential sale in late 2025 or early 2026 [7][30] - Investment in technology solutions and fleet refreshment is ongoing to enhance operational efficiency and service quality [11][29] Management's Comments on Operating Environment and Future Outlook - Management noted that the freight transportation backdrop is highly fluid, with an uncertain political and macroeconomic environment impacting operations [34] - The company is not providing formal guidance for Q4 2025 but is monitoring trends closely, particularly regarding government-related volumes and insurance costs [34][75] - Management expressed optimism about the potential for recovery in government-related business once operations resume post-shutdown [74][75] Other Important Information - The company declared a $0.40 dividend payable on December 9, 2025, to shareholders of record as of November 18, 2025 [11] - The effective income tax rate increased to 25.8% in Q3 2025, primarily due to lower pre-tax profits and the absence of favorable federal tax credits [32] Q&A Session Summary Question: Insights on the broader truckload market and capacity exits - Management noted a positive trend in BCO count, with a slight increase in truck count, indicating morale and operational stability [39][41] Question: Visibility on returning to BCO count growth - Management indicated that while there was a slight decline in October, efforts are focused on maintaining existing BCOs and onboarding new drivers [41][44] Question: Impact of approved and active carriers on freight buying - Management stated that the decline in approved carriers does not impact their ability to source and satisfy demand, emphasizing selectivity in partnerships [45][47] Question: Alignment of revenue trends with truckload spot rates - Management clarified that while spot rates may be increasing, their data does not reflect similar trends, indicating a potential lag in their pricing [51][52] Question: Commentary on government-related volume trends - Management acknowledged a decline in government-related dispatch loads due to the shutdown but expects a quick recovery once operations resume [59][75] Question: AI usage in brokerage and differentiation from peers - Management highlighted ongoing investments in AI to enhance agent support, BCO retention, and operational efficiency [76][78]

Financial Data and Key Metrics Changes - The company reported a non-GAAP operating income of $230 million, up 19% year over year, with mid-single-digit net sales growth year over year [11][12] - Net sales increased by 4% year over year in constant currency, supported by robust demand across both consumer and B2B segments [11][12] - Non-GAAP gross margin rate for the quarter was 43.8%, similar to the prior year, with operating expenses declining 3% year over year [14][15] Business Line Data and Key Metrics Changes - Personal workspace grew year over year, driven by double-digit growth in point-in-devices and keyboards [12] - Gaming segment delivered 5% year-over-year growth in constant currency, with double-digit growth in PC gaming [12] - Video collaboration grew 3% in constant currency, with strong growth in EMEA, while the Americas remained relatively flat [12][13] Market Data and Key Metrics Changes - Asia-Pacific grew 19% year over year in constant currency, led by sustained double-digit growth in China [13] - EMEA grew 3% in constant currency, driven by strong growth in video collaboration and personal workspace [13] - The Americas experienced a decline of 4%, primarily due to a downturn in the gaming market [13] Company Strategy and Development Direction - The company remains focused on long-term strategic priorities, including superior products and innovation, with 16 new products announced in the quarter [4][5] - Continued investment in R&D and demand generation is planned to gain market share [8] - The company aims to reduce its share of U.S. products originating from China to 10% by the end of the calendar year [7] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the North American consumer market, particularly in gaming, anticipating improvement during the holiday season [8][23] - The overall macro environment remains uncertain, with factors such as tariffs, export restrictions, and inflation impacting the outlook [15][16] - The company expects net sales in Q3 to grow 1% to 4% year over year in constant currency, with a gross margin rate between 42% and 43% [16] Other Important Information - The company generated approximately $230 million in cash from operations, ending the quarter with a cash balance of $1.4 billion [15] - Logitech was ranked 25th on Forbes' list of the world's best employers [10] Q&A Session Summary Question: Can you elaborate on U.S. consumer uncertainty, particularly in gaming? - Management noted that while the gaming market in the Americas declined mid-single digits, there is cautious optimism for recovery due to upcoming game releases and targeted promotions [22][23] Question: What is the consumer response to higher prices? - Management indicated minimal impact on premium products, with some effect on entry-level products, particularly in gaming [27][33] Question: How is Logitech approaching M&A? - The company prioritizes organic investment, followed by dividend growth, with M&A being a lower priority, focusing on strategic targets that enhance growth [35] Question: How is the marketing spend planned for the holiday season? - Management expressed confidence in inventory levels and indicated a focus on effective marketing spend, particularly in premium offerings [58] Question: What is the status of channel inventories? - Management confirmed that channel inventories are healthy across all regions, with a positive dynamic in the Americas as sell-out outpaced sell-in [69] Question: Can you provide insights on gaming subsegments? - The gaming segment globally continues to perform well, with strong demand in PC gaming and growth in the premium segment [67]

Financial Data and Key Metrics Changes - BrightSpring reported total revenue of $3.3 billion for Q3 2025, representing a 28% year-over-year growth [9][24] - Adjusted EBITDA for the quarter was $160 million, an increase of 37% compared to the same period last year, with an EBITDA margin of 4.8% [9][26] - Cash flow from operations exceeded $100 million in Q3, with leverage declining to 3.3x [10][27] Business Line Data and Key Metrics Changes - Pharmacy Solutions revenue was $3.0 billion, growing 31% year-over-year, while Provider Services revenue reached $367 million, increasing 9% year-over-year [9][24] - Within Pharmacy Solutions, infusion and specialty revenue was $2.4 billion, reflecting a 42% growth from the prior year, while home and community pharmacy revenue was approximately flat at $590 million [24][26] - Provider Services segment adjusted EBITDA grew 16%, with home healthcare revenue increasing 12% year-over-year [18][24] Market Data and Key Metrics Changes - Home healthcare average daily census was 29,592, representing a 3% increase year-over-year, with hospice revenue increasing approximately 15% [18][19] - Specialty pharmacy scripts grew approximately 40% in Q3, driven by strong performance in both brand limited distribution drugs (LDDs) and generics [15][16] Company Strategy and Development Direction - BrightSpring aims to leverage its scaled platform in home and community healthcare to differentiate itself in the market [7] - The company is focused on quality and continuous improvement, with high patient satisfaction scores across service lines [11][12] - Future growth strategies include expanding chronic infused therapy offerings and optimizing go-to-market strategies in pharmacy [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing operational execution and continuous improvement driving financial results [8] - The company anticipates closing the community living divestiture transaction in Q1 2026, which is subject to regulatory approvals [8][10] - Management expects to achieve adjusted EBITDA guidance of $605 million-$615 million for 2025, reflecting a growth of 31.5%-33.7% over 2024 [30] Other Important Information - BrightSpring will host an Investor Day on March 17 in Louisville to discuss company strategy and service line prospects [21][22] - The company is implementing operational initiatives to enhance efficiency and has seen positive impacts from targeted growth investments [25][88] Q&A Session Summary Question: On the pacing of new drug launches - Management confirmed that the pipeline remains robust, with expectations of 16 to 18 launches over the next 12 to 18 months [32][33] Question: Sources of accretion for the Amedisys transaction - Management indicated that integration of operations and applying best practices will drive incremental margin and profit [41][42] Question: EBITDA per script increase sustainability - Management noted that higher growth in specialty scripts, which have the highest gross profit, contributed to the increase [44][45] Question: Impact of community living divestiture delay - Management stated that the delay is due to regulatory processes but remains optimistic for a Q1 closure [71] Question: Future opportunities in specialty pharmacy - Management highlighted ongoing focus on rare and orphan therapies and the growth potential in both acute and chronic therapies [94][95]

Financial Data and Key Metrics Changes - The third quarter net revenue was $475.6 million, up 1.6% from the prior year's third quarter, with adjusted EBITDA of $190.9 million, up 4.5% [10] - The adjusted EBITDA margin was 40.1%, an increase of 110 basis points from the prior year [10] - The company generated $128.5 million in operating free cash flow, translating to $1.21 per share, bringing year-to-date cumulative free cash flow to $335.3 million, or $3.17 per share [10][11] Business Line Data and Key Metrics Changes - Las Vegas operations achieved a record third-quarter net revenue of $468.6 million, up almost 1% year-over-year, with adjusted EBITDA of $209.4 million, up 3.4% [9] - The hotel segment performed exceptionally well, generating near-record results despite renovations, with occupancy increasing across the portfolio [12] - The food and beverage segment achieved record revenue and near-record profitability, supported by higher cover counts [12] Market Data and Key Metrics Changes - The company reported continued strength in carded slot play across its database, including regional and national segments, with robust visitation and net theoretical win [11] - The local market is expected to add more than 6,000 new households within a three-mile radius of the Durango property over the next few years [9] Company Strategy and Development Direction - The company is focused on executing its development pipeline, including significant investments in Durango Casino Resort, Sunset Station, and Green Valley Ranch [11][17] - The next phase of the Durango Master Plan will expand the property significantly, adding new amenities to enhance guest experience and drive repeat visitation [8][9] - The company aims to maintain operating discipline and enhance shareholder returns through a balanced capital allocation strategy [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and resilience of the business, despite ongoing construction disruptions [13][22] - The Las Vegas locals' market is viewed as fundamentally different from the Strip, with a loyal customer base driving consistent revenue [42] - The company anticipates continued stability in its core slot and table games business, with a return to normal hold in sports betting [12][32] Other Important Information - The company approved an increase in regular cash quarterly dividends to $0.26 per Class A share, reflecting confidence in long-term earnings power [20] - The total project cost for the Durango expansion is estimated at approximately $385 million, with construction expected to begin in January [8][9] Q&A Session Summary Question: Can you talk about the rationale for the Durango expansion? - Management highlighted the strong performance of Durango and the lack of competition in the area, expecting similar returns on the expansion as the initial build [27][28] Question: What was the impact of sports betting hold this quarter? - Management noted a return to normal hold after an unfavorable hold last year, estimating a disruption impact of about $2.5 to $3 million for the quarter [32] Question: How did the hotel segment perform compared to the Strip? - The hotel segment showed resilience, with occupancy up and RevPAR only slightly down, outperforming the Strip by about 25% on an ADR basis [38] Question: What is the expected disruption from ongoing construction projects? - Management expects disruption to extend beyond 2025 into 2026, with estimated impacts of around $8 million for Q4 [32][94] Question: How is the tavern business performing? - The company has eight taverns under contract, with two operational and positive early performance indicators, attracting a younger customer base [96][97]

Financial Data and Key Metrics Changes - Overall company revenue decreased approximately 1% year over year in Q3 2025, impacted by non-cash, non-recurring items [6][9] - GAAP EPS were $0.56, while adjusted EPS was $1.22, excluding the impact of impairment charges totaling approximately $30.1 million [9][32] - Gross profit was $111.1 million compared to $112.7 million in Q3 2024, with a gross profit margin of 9.2% [24][25] Business Line Data and Key Metrics Changes - Heavy haul service revenue increased approximately 17% year over year, with heavy haul revenue per load up 9% and volume up 8% [7][19] - Non-truck transportation service revenue decreased by 1% year over year, but increased by approximately 16% when excluding prior year fraud-related revenue [21] - Transportation logistics segment revenue decreased by 0.6% year over year due to slight decreases in loadings and revenue per load [22] Market Data and Key Metrics Changes - Truck capacity remained readily available, with overall truck revenue per load essentially flat compared to Q3 2024 [10][17] - Revenue hauled on behalf of other truck transportation companies decreased by 17% year over year, indicating spare capacity in the market [24] - The number of loads hauled via truck in October 2025 was approximately 3% below October 2024, with revenue per load approximately equal to 2024 [34] Company Strategy and Development Direction - The company is focused on strategic growth initiatives and continuous improvement in service levels for customers, agents, and independent contractors [8][11] - A decision was made to actively market Landstar Metro for sale, with plans for a potential sale in late 2025 or early 2026 [7][9] - Investment in technology solutions and fleet refreshment is ongoing to enhance operational efficiency and service delivery [11][29] Management's Comments on Operating Environment and Future Outlook - The freight transportation environment remains challenging due to inflation and regulatory uncertainties, but there are positive signs in the heavy haul segment [5][34] - Management noted that the impact of regulatory changes on capacity will unfold over a longer period, with potential positive effects for the company [40][68] - The company will provide revenue commentary for Q4 2025 instead of formal guidance due to the fluid operating environment [34] Other Important Information - The company declared a $0.40 dividend payable on December 9, 2025, to shareholders of record as of November 18, 2025 [11] - The accident frequency rate was reported at 0.60 DOT reportable accidents per million miles, reflecting a strong safety performance [12][13] - The company is actively engaged in AI initiatives to improve customer service and operational efficiency [76] Q&A Session Summary Question: Insights on the broader truckload market and capacity exits - Management expressed satisfaction with the recent increase in BCO count, indicating positive morale and potential for growth despite regulatory challenges [39] Question: Visibility on returning to BCO count growth - Management noted a slight increase in BCO count in Q3 and emphasized ongoing efforts to maintain and onboard high-quality drivers [41][44] Question: Impact of approved and active carriers decline on freight buying - Management indicated that the decline in carriers would not significantly impact their ability to source and satisfy demand, focusing on selective partnerships [45][47] Question: Alignment of revenue trends with truckload spot rates - Management clarified that while spot rates may be increasing, their data does not reflect similar trends, indicating a potential lag in their pricing [51][52] Question: Commentary on government-related volume trends - Management acknowledged a decline in government-related dispatch loads due to the government shutdown but anticipated a quick recovery once operations resume [59][75]

Varonis Systems (NasdaqGS:VRNS) Q3 2025 Earnings Call October 28, 2025 04:30 PM ET Company ParticipantsTim Perz - VP of Investor RelationsYaki Faitelson - CEOGuy Melamed - CFO and COOConference Call ParticipantsFatima Boolani - AnalystJason Ader - AnalystBrian Essex - AnalystMatt Hedberg - Software AnalystRudy Kessinger - Senior Equity Senior AnalystErik Suppiger - Senior Research AnalystMike Cikos - AnalystRoger Boyd - AnalystJunaid Siddiqui - Investment AnalystJoseph Gallo - AnalystShrenik Kothari - Analy ...

Financial Data and Key Metrics Changes - The company reported $790 million in net product sales for Q3 2025, reflecting a 28% year-over-year growth driven by INGREZZA and CRENESSITY [8][10] - CRENESSITY sales grew from $53 million in Q2 to $98 million in Q3, indicating strong early adoption [8][10] - INGREZZA achieved net sales of $687 million, marking the third consecutive quarter of record new patient additions [8][10] Business Line Data and Key Metrics Changes - INGREZZA's performance has been exceptional, with a prescriber base 30% larger than two years ago, and only about 10% of the estimated 800,000 patients with tardive dyskinesia currently treated with a VMAT2 inhibitor [12][13] - CRENESSITY has seen 540 new patients initiate therapy in Q3, bringing the total to over 1,600 since launch, with 80% of dispensed prescriptions now reimbursed [8][10][15] Market Data and Key Metrics Changes - The company noted a significant organic growth opportunity in the tardive dyskinesia market, with only 10% of diagnosed patients currently receiving treatment [12][13] - The pediatric population showed modestly higher demand for CRENESSITY compared to adults, with strong reimbursement rates observed [16][17] Company Strategy and Development Direction - The company plans to expand its sales force for both INGREZZA and CRENESSITY to accelerate growth into 2026 and beyond, focusing on maximizing patient share and preparing for future product launches [9][10][17] - The capital allocation priorities include driving revenue growth, advancing R&D programs, enabling business development, and returning capital to shareholders [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing momentum for both INGREZZA and CRENESSITY, highlighting the potential for sustained long-term growth driven by their science and commitment to patients [6][7] - The company is on track to meet its R&D productivity goals, with plans for four new Phase I study initiations and two new Phase II initiations [6][10] Other Important Information - The company is fully cooperating with a Department of Justice investigation regarding the sales and marketing of INGREZZA, maintaining a robust compliance program [49][50] - The company has $2.1 billion in cash with no debt, allowing for flexibility in capital allocation [94] Q&A Session Summary Question: Insights on CRENESSITY patient dynamics and enrollment trends - Management noted that the adoption of CRENESSITY has been consistent, with no significant seasonal dynamics affecting enrollment [24][25] Question: Implications of the Inflation Reduction Act on pricing - Management discussed the upcoming Oscado pricing and its potential impact on INGREZZA, emphasizing the need to maximize patient share before the IRA takes effect [31][32] Question: Reimbursement requirements for CRENESSITY - Management clarified that there are no specific steroid tapering requirements for reimbursement, and the process has been smooth [39] Question: Sales force expansion details - The company plans a 30% increase in its sales footprint, primarily focusing on INGREZZA, with a smaller expansion for CRENESSITY [58][60] Question: Persistence and compliance of CRENESSITY - Management reported strong persistence and compliance rates for CRENESSITY, with positive feedback from healthcare providers regarding treatment outcomes [78][79] Question: Future growth outlook for INGREZZA - Management indicated that INGREZZA is growing faster than the overall market, with expectations for continued robust growth into 2026 and beyond [103]

Financial Data and Key Metrics Changes - The company reported an 18% year-over-year increase in Annual Recurring Revenue (ARR), reaching $718.6 million [6][19] - Total revenues for the third quarter were $161.6 million, reflecting a 9% year-over-year growth [19] - Free cash flow for the year-to-date was $111.6 million, up from $88.6 million in the same period last year [19][22] - Gross profit for Q3 was $128.3 million, with a gross margin of 79.4%, down from 85% in Q3 2024 [20] Business Line Data and Key Metrics Changes - The SaaS business now accounts for 76% of total company ARR, indicating a successful transition to SaaS [5][15] - SaaS revenues for the third quarter were $125.8 million, while term license subscription revenues were $24.8 million [19] - The company experienced weaker than expected renewals in both federal and non-federal on-premises subscription businesses [7][16] Market Data and Key Metrics Changes - The federal business has historically contributed around 5% of total ARR, but faced headwinds in renewals during Q3 [78] - The company noted strong demand for its SaaS platform, particularly in cloud environments, which represents a significant growth opportunity [9][15] Company Strategy and Development Direction - The company plans to end-of-life its self-hosted solution by December 31, 2026, to focus entirely on its SaaS offerings [7][15] - Investments in partnerships, particularly with Microsoft, are aimed at enhancing integration and capitalizing on AI-related data security needs [11][12] - The company is focusing on upselling existing SaaS customers and expanding its market potential [9][18] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with the performance of the on-prem business but remains confident in the SaaS business's growth potential [23] - The company is taking a conservative approach to guidance for Q4, reflecting the recent underperformance in renewals [17][22] - Management highlighted the importance of addressing customer needs and ensuring effective account management to improve renewal rates [30][44] Other Important Information - The company has authorized a $115 million share repurchase program, supported by a strong balance sheet with over $1 billion in liquidity [23] - The company is implementing a 5% reduction in headcount to reallocate resources more effectively [8][23] Q&A Session Summary Question: What led to the decision to terminate some federal team members after receiving FedRAMP High authorization? - Management indicated that the federal business has not performed as expected, leading to a reevaluation of strategy and a reduction in team size to focus on SaaS transitions [26] Question: What were the reasons for lower than expected renewals in the on-prem business? - Management noted that there was no single common theme for the non-renewals, but identified issues with account management and customer engagement as contributing factors [30][67] Question: How does the company plan to address the churn in the non-SaaS ARR base? - Management is baking in conservatism in guidance and will evaluate Q4 performance to determine if the recent trends are isolated or indicative of a larger issue [38][75] Question: What is the expected contribution from recent acquisitions like SlashNext and Cyro? - Management expressed confidence that these acquisitions will enhance the company's offerings and contribute positively to growth [55] Question: Is the push to migrate to SaaS alienating some customers? - Management believes that moving to SaaS is essential for long-term value and efficiency, despite potential short-term challenges with some customers [58][61]

Financial Data and Key Metrics Changes - For Q3 2025, total company revenue was $3.3 billion, representing a 28% increase year over year, with adjusted EBITDA growing approximately 37% to $160 million [9][24][27] - EBITDA margin improved to 4.8%, up 30 basis points compared to the previous year [9][26] - Cash flow from operations exceeded $100 million, and leverage ratio declined to 3.3 times, with a target of 3 times by year-end [10][27] Business Line Data and Key Metrics Changes - Pharmacy Solutions revenue was $3.0 billion, a 31% increase year over year, while Provider Services revenue was $367 million, growing 9% [9][24] - Within Pharmacy Solutions, infusion and specialty revenue reached $2.4 billion, up 42% year over year, while home and community pharmacy revenue was approximately flat at $590 million [24][26] - Provider Services segment adjusted EBITDA grew 16% to $61 million, with home healthcare revenue increasing 12% [18][24] Market Data and Key Metrics Changes - Home healthcare average daily census increased by 3% year over year, with hospice revenue growing approximately 15% [18][19] - Specialty pharmacy scripts grew approximately 40% in Q3, driven by strong performance in both brand limited distribution drugs (LDDs) and generics [15][16] - Home and community pharmacy demonstrated 99.5% order completeness and on-time delivery of 97.2% [12] Company Strategy and Development Direction - The company is focused on quality and continuous improvement, aiming to deliver low-cost, patient-centric care [11][22] - Plans to close the community living divestiture transaction in Q1 2026, which is expected to enhance operational focus [8][29] - The company is optimistic about expanding its presence in targeted markets and enhancing operational efficiency through automation and AI initiatives [84][93] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing growth trajectory, with expectations for continued strong performance in Q4 2025 [10][29] - The company anticipates a positive impact from recent investments in home health, hospice, and rehab services [25][84] - Management remains focused on maintaining high-quality service levels and patient satisfaction across all service lines [11][12] Other Important Information - The company plans to host an Investor Day on March 17 in Louisville to discuss strategy and service line prospects [21] - The adjusted EPS for Q3 was $0.30, reflecting strong operational performance [25] Q&A Session Summary Question: On the pacing of new drug launches - Management confirmed that the pipeline remains robust, expecting 16 to 18 launches over the next 12 to 18 months, with a strong year for brand wins [31][32] Question: On the Amedisys and LHC Home Health Branch acquisitions - Management indicated that the transaction is expected to be accretive in 2026, with integration plans focusing on operational efficiencies [34][36] Question: Sources of accretion from acquisitions - Management highlighted the integration of operations and potential synergies in technology and payer contracts as key sources of incremental margin [40][42] Question: On the sustainability of EBITDA per script growth - Management noted that the increase in EBITDA per script is driven by higher growth in specialty scripts, which have higher gross profit margins [43][45] Question: Impact of community living divestiture delay - Management explained that the delay is due to regulatory processes but remains optimistic for a Q1 closure [68] Question: Future opportunities in specialty pharmacy - Management emphasized ongoing focus on rare and orphan therapies, with expectations for continued growth in the specialty and infusion segments [90][92]

Financial Data and Key Metrics Changes - Edison International reported third quarter core earnings per share (EPS) of $2.34, up from $1.51 a year ago, influenced by a true-up for the 2025 General Rate Case [5][17] - The company narrowed its 2025 core EPS guidance range to $5.95-$6.20, reflecting strong year-to-date performance and outlook for the remainder of the year [5][18] - The long-term core EPS growth target remains at 5%-7% through 2028 [5][17] Business Line Data and Key Metrics Changes - Southern California Edison (SCE) has made significant progress in wildfire mitigation, deploying over 6,800 miles of covered conductor and planning to harden nearly 90% of its distribution lines in high fire risk areas by year-end [13][14] - The final decision on the 2025 General Rate Case authorizes base revenue of $9.7 billion, supporting investments in wildfire mitigation and safety [12][13] Market Data and Key Metrics Changes - California's legislative session concluded with the passage of SB 254, which establishes an $18 billion continuation account for wildfire claims, enhancing financial stability for investor-owned utilities [6][8] - The company anticipates a near-term load growth compound annual growth rate (CAGR) of up to 3%, with long-term projections indicating electricity sales could nearly double over the next two decades [25] Company Strategy and Development Direction - The company is focused on maintaining affordability for customers while investing in safety and reliability, particularly in response to wildfire risks [12][15] - Edison International is committed to working with legislators and stakeholders to shape a sustainable and equitable framework for addressing climate-driven natural disasters [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the legislative actions taken to support utilities and mitigate wildfire risks, indicating a positive outlook for future legislative developments [9][16] - The company remains focused on customer costs and maintaining healthy credit ratings, emphasizing the importance of financial health in the context of regulatory changes [62] Other Important Information - The company is preparing for significant capital expenditures of $28 billion-$29 billion over the next four years, focusing on infrastructure replacement and system resiliency [19][20] - The passage of SB 254 allows for securitization of wildfire claims payments, which is expected to minimize costs and improve financial flexibility [23][24] Q&A Session Summary Question: Clarification on the $0.10 charge related to preferred equity - Management confirmed that the $0.10 charge is related to preferred equity series with rate resets in March 2026 and March 2027, and they are evaluating options for addressing this [32][34] Question: Participation level in the Wildfire Recovery Compensation Program - Management indicated that the program has not yet launched but is expected to finalize soon, and participation rates will be crucial for estimating losses [35][37] Question: Growth rate trends and clarity on EPS trajectory - Management expressed confidence in the 5%-7% EPS growth rate, citing clarity from the General Rate Case and various regulatory proceedings [45][46] Question: Impact of SB 254 on capital expenditures - Management clarified that the capital expenditures related to wildfire mitigation under SB 254 will be spent after the 2029 rate case cycle [98][100] Question: Breakdown of near-term sales growth - Management noted that near-term sales growth is expected to be driven by electrification, residential growth, and increases in commercial and industrial consumption [104]