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 [11][12] - 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][15] Market Data and Key Metrics Changes - The company estimates that only half of the patients living with tardive dyskinesia have received a diagnosis, indicating significant growth potential in the market [11][12] - The pediatric population has shown modestly higher demand for CRENESSITY compared to adults, with strong reimbursement rates observed [15] Company Strategy and Development Direction - The company plans to expand its sales force for both INGREZZA and CRENESSITY to accelerate growth and maximize patient share [9][16] - 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, with expectations for continued growth into 2026 and beyond [6][10] - The company is on track to achieve its R&D productivity goals, with multiple Phase I and II study initiations planned [6][10] Other Important Information - The company is fully cooperating with a Department of Justice investigation related to 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 patient dynamics and starts for CRENESSITY - Management noted that the adoption of CRENESSITY has been strong, with 540 new treatment forms in Q3, and they do not see significant seasonality affecting the launch [23][24] Question: Implications of the Inflation Reduction Act (IRA) on pricing - Management is awaiting pricing information for Oscado and is preparing to maximize patient numbers on INGREZZA before the IRA impacts begin [31][33] Question: Reimbursement requirements for CRENESSITY - Reimbursement has been smooth, with no specific steroid tapering required for coverage, focusing instead on the underlying disease [39] Question: Sales force expansion details - The sales force expansion is expected to increase overall coverage by about 30%, primarily targeting psychiatry and neurology [58][60] Question: Persistence and compliance of CRENESSITY - Persistence and compliance for CRENESSITY have been strong, with positive feedback on disease control and androgen reduction from healthcare providers [77][78] Question: Future product launches and sales force readiness - The expanded sales force is positioned to support potential launches of new products in the pipeline, including osavampator and Directlidine [109]

Financial Data and Key Metrics Changes - The third quarter net revenue for Las Vegas operations was $468.6 million, up almost 1% from the prior year's third quarter [9] - Adjusted EBITDA for Las Vegas operations was $209.4 million, up 3.4% from the prior year's third quarter, with an adjusted EBITDA margin of 44.7%, an increase of 110 basis points from the prior year [9][10] - Consolidated third quarter net revenue, including $3.9 million from the North Fork project, was $475.6 million, up 1.6% from the prior year's third quarter [10] - Consolidated Adjusted EBITDA was $190.9 million, up 4.5% from the prior year's third quarter, with an adjusted EBITDA margin of 40.1%, an increase of 110 basis points from the prior year [10] Business Line Data and Key Metrics Changes - The hotel segment generated near-record results despite the West Tower at Green Valley Ranch being offline for renovation, driven by increased occupancy across the portfolio [11] - The food and beverage segment achieved record revenue and near-record profitability for the quarter, supported by higher cover counts across outlets [11] - Group Sales and Catering delivered near-record third-quarter revenue, with positive momentum expected to continue into early 2026 [11] Market Data and Key Metrics Changes - The company saw continued strength in carded slot play across its database, including regional and national segments, with robust visitation and net theoretical win driving record revenue and profitability in the gaming segment [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, supported by the development of downtown Summerlin and Summerlin West, projected to add approximately 34,000 new households [9] Company Strategy and Development Direction - The company is focused on executing its development pipeline, maintaining operating discipline, and enhancing shareholder returns through a balanced capital allocation strategy [21] - Significant investments are being made in the Durango Casino Resort, Sunset Station, and Green Valley Ranch properties, with ongoing renovations and expansions aimed at enhancing guest experience and driving growth [17][18] - The company plans to expand the Durango Casino Resort with additional casino space and amenities, including a bowling facility and luxury movie theaters, to capture additional market share [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and resilience of the business, despite near-term disruptions from ongoing construction projects [13][21] - The Las Vegas locals' market is viewed as fundamentally different from the Strip, with a loyal customer base and a gaming-centric business model that does not rely heavily on tourism [40] - The company anticipates continued stability in its core slot and table games business, with a return to normal hold in the sports business as the fourth quarter begins [12][40] Other Important Information - The company's cash and cash equivalents at the end of the third quarter were $129.8 million, with total principal debt outstanding at $3.4 billion, resulting in a net debt of $3.3 billion [13] - The board approved an increase in the regular cash quarterly dividend to $0.26 per Class A share, reflecting confidence in the business's strength and long-term earnings power [20] - Capital expenditures for the third quarter were $93.7 million, with a full-year expectation of $325 million to $350 million, down $25 million from previous guidance [16] Q&A Session Summary Question: Can you talk about the rationale for the expansion at Durango? - Management highlighted the strong performance of Durango and the lack of competition within three miles, indicating the potential to drive additional traffic and guests through the expansion [25] Question: What was the impact of sports betting hold this quarter? - Management noted that the hold returned to normal levels after an unfavorable hold in the previous year, with an estimated disruption impact of $2.5 million to $3 million for the quarter [30] Question: How did the hotel segment perform relative to the Strip? - The hotel segment performed well, with occupancy up 244 basis points, and the company outperformed the Strip by about 25% on an ADR basis [35] Question: What are the early thoughts on the tavern business? - The company has eight taverns under contract, with two operational and five expected to open in the coming months, showing promising early performance [92][93] Question: What is the expected disruption from ongoing construction projects? - Management anticipates approximately $8 million in disruption from the Green Valley Ranch project in the fourth quarter, with minor disruptions at other properties [30][90]

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 to $6.20, reflecting strong year-to-date performance and outlook for the remainder of the year [5][18] - The company reaffirmed its long-term core EPS growth target of 5% to 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 authorized base revenue of $9.7 billion, supporting investments in wildfire mitigation and reliability [12][13] Market Data and Key Metrics Changes - California's legislative session concluded with the passage of SB 254, creating an $18 billion continuation account to support utilities and customers in wildfire risk management [6][8] - The company expects a near-term load growth compound annual growth rate (CAGR) of up to 3%, with long-term electricity sales projected to nearly double over the next two decades [25] Company Strategy and Development Direction - The company is focused on legislative and regulatory progress to enhance financial stability and operational execution, particularly in wildfire risk management [15][16] - Edison International is committed to maintaining affordability for customers while investing in safety and reliability [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the legislative actions taken to address wildfire risks and the financial stability of investor-owned utilities [6][9] - The company is optimistic about future legislative actions and the potential for meaningful reforms to address climate-driven natural disasters [9][16] Other Important Information - The company is preparing for a comprehensive report due in April 2026 to evaluate long-term reforms related to wildfire risk and cost allocation [8][9] - SCE expects to receive approximately $1.6 billion in securitization proceeds from the TKM settlement by year-end [22] 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][33] 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][36] Question: Growth rate trends and guidance - Management expressed confidence in the 5% to 7% EPS growth rate, citing clarity from the General Rate Case and various regulatory proceedings [45][46] Question: SB 254 CapEx and equity return - Management clarified that the CapEx related to wildfire mitigation under SB 254 will not earn an equity return and will be considered in future rate cases [97][98] Question: Breakdown of near-term sales growth - Management noted that the near-term sales growth of 1% to 3% is driven by electrification, residential growth, and commercial and industrial customers [104]

Financial Data and Key Metrics Changes - The company reported net sales of $27.3 million for Q3 2025, representing a 63% year-over-year growth [7] - Gross margin improved to 55.5%, up 212 basis points from 53.4% in Q3 2024 and up 167 basis points sequentially from 53.8% in Q2 2025 [10] - Total operating expenses increased to $32.2 million, a 62% rise compared to $19.9 million in Q3 2024 [13] - The company has approximately $274 million in cash and investments as of September 30, 2025, indicating strong capitalization for future initiatives [14] Business Line Data and Key Metrics Changes - The growth in revenue was driven by 5,334 new patient starts in Q3, which grew 68% year-over-year [8] - A low 30% of new patient starts were reimbursed through the pharmacy channel, significantly higher than the high single-digit percentage in Q3 2024 [8][9] - Approximately 70% of new patient starts came from individuals previously using multiple daily injections, indicating market expansion [12] Market Data and Key Metrics Changes - The company has over 80% of insured lives in the U.S. covered under formulary agreements with major pharmacy benefit managers (PBMs) [8] - The pharmacy mix of new patient starts is projected to be between 27% to 29% for the full year 2025, up from prior guidance of 25% to 28% [14][15] Company Strategy and Development Direction - The company aims to disrupt the diabetes management industry with innovative products like the iLet and the upcoming Mint patch pump [6][18] - The focus remains on driving adoption of the iLet as a pharmacy benefit at the health plan level [9] - The company is committed to building a robust pipeline of innovative solutions to transform diabetes management [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business direction, citing strong demand for the iLet and positive real-world outcomes [10][11] - The company anticipates continued gross margin expansion due to increased scale and manufacturing volume leverage [10][16] - Management acknowledged potential variability in pharmacy mix due to seasonal dynamics and ongoing adoption efforts [15] Other Important Information - The company received a special 510(k) clearance for updates to the iLet, improving usability and reducing alert fatigue [22] - Remediation efforts related to an FDA Form 483 are underway, with expectations to complete by Q2 2026 [24][26] - Over 25% of new patient starts in Q3 were from type 2 diabetes patients, consistent with prior quarters [27] Q&A Session Summary Question: What is driving the momentum in revenue growth? - Management indicated that the success is due to the unique positioning of the iLet as a new category of device, with increasing adoption over time [32] Question: Can you elaborate on the patient demographics for new starts? - The remaining 30% of new patients are coming from competitive pump systems, with a consistent split among primary competitors [37] Question: What is the impact of the FDA Form 483? - Management stated that they are aggressively addressing the issues raised and have implemented new systems to align with FDA standards [45][46] Question: What are the growth drivers for next year? - Continued understanding of the iLet, pharmacy adoption, and high retention rates from the pharmacy installed base are expected to drive growth [56][58] Question: What is the timeline for the biohormonal system? - Management refrained from providing specific timelines but confirmed that they are working towards initiating a feasibility trial [66]

Financial Data and Key Metrics Changes - Sales for Q3 2025 increased by 7% to $122.5 million, with gross profit at $49.3 million, representing 40.2% of net sales, up from 38.1% in Q3 2024 [12][16] - Adjusted diluted EPS was $1.03, a 34% increase compared to Q3 2024 [3][16] - Gross margins improved by 210 basis points, driven by higher wholesale and retail margins [13][16] Business Line Data and Key Metrics Changes - Wholesale net sales increased by 6.1% to $89.1 million, retail net sales rose by 10.3% to $29.5 million, and contract manufacturing net sales grew by 4.1% to $3.9 million [12][16] - XTRATUF brand showed strong growth, particularly in U.S. wholesale, which increased by double digits [4][5] - Muck brand continued its positive trajectory with double-digit growth in U.S. wholesale, supported by successful collaborations and improved inventory positions [6][8] Market Data and Key Metrics Changes - The company experienced a challenging consumer environment, with cautious spending observed among consumers [21][23] - E-commerce business showed recovery in September after a sluggish period in July and August, indicating strong marketplace performance [29][31] Company Strategy and Development Direction - The company is diversifying its sourcing base to mitigate the impact of higher tariffs, including adding new manufacturing partners outside of China and Vietnam [3][4] - Plans to manufacture approximately 50% of inventory needs in-house by 2026, up from 30% in 2025, to improve gross margins [18][19] - The company is focusing on expanding its direct-to-consumer business and enhancing marketing investments to support growth [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the fourth quarter, balancing strong brand momentum with concerns about the broader consumer environment [11][19] - Anticipated that headwinds from higher tariffs will abate midway through 2026, with expectations for improved gross margins in the second half of next year [12][18] - Management noted that Q4 2025 is expected to be the worst quarter from a tariff perspective, with improvements anticipated in 2026 [35] Other Important Information - The company reported a decrease in total debt by 7.5% year-over-year, totaling $139 million [16][17] - Inventory levels increased by 12.7% year-over-year, primarily due to higher tariffs and increased production in-house [16][17] Q&A Session Summary Question: Thoughts on the consumer environment - Management noted that the consumer environment is dynamic, with cautious spending observed, but products are still selling well [21][23] Question: Quantifying delayed sales due to supply chain issues - Delays in sourcing changes resulted in a few million dollars in missed inventory, with expectations that bringing more products in-house will help margins in 2026 [25] Question: Insights on third-quarter results versus expectations - Management expressed satisfaction with Q3 results despite challenges, noting strong performance in marketplace and e-commerce [29][31] Question: Pockets of weakness and fourth-quarter guidance - Durango brand showed some weakness due to pulled-forward orders, while other brands like XTRATUF and Georgia Boot performed well [32][33] Question: Implied profit guidance for the fourth quarter - Management indicated that pricing will help offset tariff impacts, but Q4 margins are expected to be depressed due to timing of tariff effects [34][35] Question: Potential impact of consumer stimulus in 2026 - Management is prepared to take advantage of any consumer stimulus, with positive momentum expected for XTRATUF in 2026 [39][40]

Financial Data and Key Metrics Changes - The company reported a non-GAAP operating income of $230 million, representing a 19% year-over-year increase [11] - 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 by 3% year-over-year [13][14] Business Line Data and Key Metrics Changes - Personal workspace segment 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, primarily due to double-digit growth in PC gaming [12] - Video collaboration grew 3% in constant currency, with strong growth in EMEA, while the Americas segment was relatively flat [12] Market Data and Key Metrics Changes - Asia-Pacific region grew 19% year-over-year in constant currency, led by sustained double-digit growth in China [12] - EMEA region grew 3% in constant currency, driven by strong growth in video collaboration and personal workspace [12] - The Americas region experienced a 4% decline, primarily due to a downturn in the gaming market [12] 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 [3][4] - 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 [6] 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 [7][8] - The overall macroeconomic environment remains uncertain, with factors such as tariffs and inflation impacting the outlook [15] - The company expects net sales in Q3 to grow between 1% to 4% year-over-year in constant currency [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] - A total of $340 million was returned to shareholders through dividends and share repurchases [15] - The company was ranked 25th on Forbes' list of the world's best employers [10] Q&A Session Summary Question: Can you elaborate on the U.S. consumer uncertainty, particularly in gaming? - Management noted that while the gaming market in the Americas declined mid-single digits, they are cautiously optimistic about recovery due to upcoming game releases and targeted promotions [20][21] Question: What impact did pricing increases have on consumer behavior? - Management indicated that higher-priced and premium products saw little to no impact from price increases, while entry-level products experienced some effects [25][30] Question: How is Logitech approaching M&A opportunities? - The company remains focused on organic investments as the top priority, with M&A as a lower priority, seeking strategic targets that can enhance growth [33] Question: What is the current mix of B2B and B2C business? - Logitech for Business currently accounts for about 40% of the business, with a focus on growing this segment over time [35] Question: How are channel inventories across regions? - Management stated that channel inventories are healthy across all regions, with a positive dynamic in the Americas where sell-out outpaced sell-in [61]

Financial Data and Key Metrics Changes - The company reported an 18% year-over-year increase in Annual Recurring Revenue (ARR), reaching $718.6 million [4][19] - Total revenues for Q3 were $161.6 million, reflecting a 9% year-over-year growth [19] - SaaS revenues accounted for $125.8 million, while term license subscription revenues were $24.8 million, and maintenance and services revenues were $10.9 million [19] - Gross profit for Q3 was $128.3 million, resulting in a gross margin of 79.4%, down from 85% in Q3 2024 [19] - Net income for Q3 was $8.4 million, or $0.06 per diluted share, compared to $13.8 million, or $0.10 per diluted share in Q3 2024 [20] Business Line Data and Key Metrics Changes - The SaaS business now represents 76% of total company ARR, indicating a successful transition to SaaS completed ahead of schedule [4][16] - The on-premises subscription business has underperformed, particularly in the federal sector, leading to a reduction in team size and a more conservative outlook for renewals [5][16] Market Data and Key Metrics Changes - The company experienced weaker-than-expected renewals in both federal and non-federal on-premises subscription businesses during the final weeks of Q3 [5][17] - The federal business has historically contributed around 5% of total ARR, and recent renewals in this segment have faced challenges [78] 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 [5][16] - Investments in partnerships, particularly with Microsoft, and acquisitions like Cyro and SlashNext are expected to enhance the company's product offerings and market position [10][54] - The company aims to capitalize on the growing demand for data security solutions, especially in the context of AI and cloud environments [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with the on-prem business performance but remains optimistic about the strong demand for the SaaS platform [15][23] - The company is taking steps to manage expenses, including a 5% reduction in headcount, to reallocate resources effectively [6][23] - Future guidance has been adjusted to reflect conservatism due to recent performance issues, particularly in the on-premises segment [17][23] Other Important Information - The company generated $111.6 million of free cash flow year-to-date, up from $88.6 million in the same period last year [19] - A $115 million share repurchase program has been authorized by the board, supported by a strong balance sheet with over $1 billion in liquidity [23] Q&A Session Summary Question: What led to the decision to reduce the federal team? - The company lacks empirical evidence to justify continued investment in the federal sector due to ongoing underperformance, prompting a reevaluation of strategy [26] Question: What were the reasons for the lower on-prem renewals? - There was no single theme identified; issues included account management and a lack of comprehensive engagement with on-prem customers [28][44] Question: How does the company plan to address the non-renewal of on-prem customers? - The company is focusing on improving account management and ensuring that customers understand the value of transitioning to SaaS [28][44] Question: What is the expected contribution from recent acquisitions? - The company anticipates that acquisitions like SlashNext and Cyro will enhance its product offerings and contribute positively to growth [54] Question: Is there a risk of alienating customers with the push to migrate to SaaS? - The company believes that moving to SaaS is essential for operational efficiency and customer value, despite potential concerns from some customers [58][60]

Financial Data and Key Metrics Changes - Neurocrine Biosciences reported $790 million in net product sales for Q3 2025, reflecting a 28% year-over-year growth driven by INGREZZA and CRENESSITY [6][10] - CRENESSITY's sales grew from $53 million in Q2 to $98 million in Q3, indicating strong early adoption and persistency rates [6][7] - INGREZZA achieved net sales of $687 million in Q3, marking the third consecutive quarter of record new patient additions [7][10] Business Line Data and Key Metrics Changes - INGREZZA's performance has been exceptional, with a prescriber base that has expanded by 30% over the past two years, reflecting the strong clinical profile and unmet need for tardive dyskinesia treatment [10][11] - CRENESSITY has seen 540 new patients initiate therapy in Q3, bringing the total to over 1,600 since its launch [13][15] - The company anticipates continued growth for both products, with plans for further sales force expansion to maximize patient share [8][16] Market Data and Key Metrics Changes - The tardive dyskinesia market is expected to grow significantly, with only about 10% of diagnosed patients currently treated with a VMAT2 inhibitor, indicating substantial growth potential for INGREZZA [10][11] - The congenital adrenal hyperplasia (CAH) community has shown favorable feedback towards CRENESSITY, with 80% of dispensed prescriptions now being reimbursed [6][15] Company Strategy and Development Direction - Neurocrine Biosciences is focused on expanding its sales force for both INGREZZA and CRENESSITY to accelerate growth into 2026 and beyond [4][8] - The company aims to drive revenue growth, advance R&D programs, enable business development, and return capital to shareholders, with a strong financial profile of over $2.1 billion in cash [9][80] - The strategic expansion of the sales force is intended to maximize patient share and prepare for anticipated launches of investigational psychiatric medicines [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing momentum for both products and the potential for sustained long-term growth driven by their science and commitment to patients [5][9] - The company remains on track for its clinical programs, with anticipated top-line results for key studies in the near future [18][19] - Management acknowledged the potential impacts of the Inflation Reduction Act (IRA) on the market and emphasized the importance of maximizing patient share before 2027 [8][30] Other Important Information - The company is fully cooperating with a Department of Justice investigation related to the sales and marketing of INGREZZA, maintaining a robust compliance program [40][41] - The sales force expansion is expected to result in an increase in SG&A expenses of around $150 million in 2026 [9][79] Q&A Session Summary Question: Insights on patient dynamics and starts for CRENESSITY - Management noted that the adoption of CRENESSITY has been strong, with 540 new treatment forms in Q3, and they do not believe there are significant seasonal dynamics affecting enrollment [22][23] Question: Implications of the IRA on pricing and reimbursement - Management is monitoring the upcoming Oscado pricing and its potential effects on INGREZZA, emphasizing the importance of maximizing patient numbers before the IRA impacts [28][30] Question: Status of reimbursement requirements for CRENESSITY - Management indicated that reimbursement has been smooth, with no specific requirements for steroid tapering to continue coverage [34] Question: Sales force expansion details - The expansion is characterized as a 30% increase in overall sales footprint, primarily targeting psychiatry and neurology for INGREZZA, while also expanding the team for CRENESSITY [46][48] Question: Update on the Department of Justice investigation - Management confirmed they are cooperating with the DOJ regarding a civil investigative demand related to INGREZZA's sales and marketing practices [40][41] Question: Progress with CRENESSITY at centers of excellence - All centers of excellence have started adopting CRENESSITY, with varying rates of adoption, and there is optimism about community endocrinologists' engagement [43][44]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was reported at $30.6 million, representing a 115% increase year-over-year from $14.2 million in the prior year period and a 27.3% increase sequentially [11][12] - GAAP operating profitability was achieved for the quarter, with operating income increasing by 106.2% to $600,000 compared to an operating loss of $10.4 million in the prior year [7][14] - Adjusted EBITDA increased 134.3% to $2.9 million compared to an adjusted EBITDA loss of $8.3 million in the prior year [14] Business Line Data and Key Metrics Changes - MLPE revenue represented $26.8 million or 87.5% of total revenues, while GOESSS accounted for $3.1 million or 10.3% [12] - Operating expenses increased by 1.8% to $12.4 million, driven primarily by higher sales and marketing costs [13] Market Data and Key Metrics Changes - EMEA region revenue was $21.6 million, accounting for 70.5% of total revenues, while the Americas contributed $8 million or 26% [12] - The U.S. market saw a sequential sales growth of approximately 68%, making it the largest sales region for the company this quarter [8][10] Company Strategy and Development Direction - The company is focusing on the repowering market, targeting existing installations rather than new ones, which has led to significant revenue increases [21][52] - A partnership with EG4 Electronics was announced, aimed at offering optimized inverter solutions in the U.S. market, which is expected to mitigate macroeconomic headwinds and provide growth opportunities [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects despite economic uncertainty, citing seven consecutive quarters of revenue growth and disciplined expense management [18] - The company anticipates a flat quarter in Q4 2025, traditionally a slow period, and expects to provide guidance for 2026 early in Q1 [35][36] Other Important Information - Cash, cash equivalents, and marketable securities totaled $40.3 million as of September 30, 2025 [16] - The company is working on refinancing $50 million in convertible debt due in early January 2026 [16][17] Q&A Session Summary Question: Improvement in the U.S. market and EG4 partnership potential - Management highlighted a successful strategy in targeting the repowering segment, which has led to significant revenue increases in North America [20][21] - The partnership with EG4 is expected to enhance market presence and provide a competitive solution in the optimized inverter market [22][24] Question: Expectations for initial outputs from EG4 - Initial shipments from the EG4 partnership are targeted for Q1 2026, with significant potential anticipated [30][31] Question: Repowering market dynamics and competitive positioning - The open architecture of the company's optimizer is crucial for addressing repowering needs, providing compatibility with existing systems [25][26] Question: Future growth outlook and seasonality - While specific guidance for 2026 has not been provided, management is optimistic about growth and expects to maintain current margin levels [36][38] Question: Drivers of the repowering trend - The repowering trend is financially driven, with customers seeking solutions for aging systems rather than relying on regulatory support [47][48]

Financial Data and Key Metrics Changes - In Q3 2025, worldwide revenue was $61.2 million, a 12% increase compared to Q3 2024, driven by strong performance in Trauma and Deformity, Scoliosis, and OPSB, offset by declines in 7D unit sales and LATSAM stocking and set sales [19][20] - U.S. revenue reached $48.7 million, a 14% increase from the prior year, representing 80% of total revenue [19] - Adjusted EBITDA improved by 56% to $6.2 million compared to $4.0 million in Q3 2024 [24] - Gross profit margin increased to 74% from 73% year-over-year, primarily due to a favorable product sales mix [20][21] Business Line Data and Key Metrics Changes - Trauma and Deformity global revenue grew by 17% to $44.1 million, driven by strong growth in multiple product lines [20] - Scoliosis global revenue increased by 4% to $16.3 million, led by sales of RESPONSE 5560 and Firefly, despite a decline in 7D unit sales [20][14] - OPSB growth was robust, contributing significantly to overall revenue growth [6][12] Market Data and Key Metrics Changes - International revenue totaled $12.5 million, a 6% increase year-over-year, primarily driven by increased procedure volumes in EMEA and APAC, offset by lower sales in LATSAM [19][16] - The company experienced strong demand in EMEA for scoliosis products, while LATSAM faced ongoing headwinds [17][14] Company Strategy and Development Direction - The company aims to address unmet needs in pediatric healthcare, focusing on expanding its core business segments, including Trauma and Deformity and Scoliosis implants [5][12] - The 3P platform is expected to drive future growth, with new product launches planned for the coming years [11][68] - The company is strategically expanding its OPSB clinics, with a focus on high-demand markets and operational efficiency [13][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in 7D capital sales and LATSAM but expressed confidence in the core business's strength and profitability [6][9] - The company expects to generate positive free cash flow in Q4 2025 and aims for breakeven in 2026 [9][25] - Management highlighted the exit of competitors from the pediatric space as a potential opportunity for market share growth [27][28] Other Important Information - Total operating expenses increased by 19% to $54.7 million, driven by restructuring and impairment charges, as well as growth in OPSB clinics [21][22] - The company recorded a GAAP net loss per share of $0.50, compared to $0.34 in the prior year [23] Q&A Session Summary Question: Competitors exiting the space - Management noted that major OEMs like Johnson & Johnson and Smith & Nephew are pulling pediatric-specific products, which could benefit the company competitively [27][28] Question: Expansion of OPSB clinics - Management confirmed high demand for clinics and expressed willingness to accelerate openings if feasible, balancing profitability with growth [29][30] Question: Revenue and EBITDA guidance - Management clarified that product mix is the primary driver of changes in EBITDA guidance, with no significant concerns about the revenue range [34] Question: Impact of 7D sales on growth - Management indicated that delays in 7D placements would not significantly impact long-term growth rates for the implant business [51] Question: EU MDR approvals and staffing changes - Management confirmed that upcoming EU MDR approvals would enhance the Scoliosis portfolio in Europe, while staffing reductions are part of cost management efforts [60][62]