Financial Data and Key Metrics Changes - Total net revenue for Q4 2025 was RMB 89.1 million, a decrease of 11.7% compared to Q4 2024, primarily due to lower contributions from portfolio training programs and overseas study counseling services [10] - Gross profit for Q4 2025 was RMB 30.2 million, down from RMB 63.7 million in Q4 2024, with a gross margin of 56.4% compared to 63.1% in the prior year [10] - Total operating expenses in Q4 2025 were RMB 73.3 million, an increase from RMB 46.8 million in Q4 2024, primarily due to a one-time goodwill impairment charge of RMB 33.9 million [11] - For the full year 2025, total net revenue was RMB 268.1 million, flat compared to the prior year, with a gross profit of RMB 130.3 million, a decrease of 7.8% from RMB 141.3 million in 2024 [12][13] Business Line Data and Key Metrics Changes - The main revenue contributor in Q4 2025 was the portfolio training service, accounting for 68.8% of total net revenues, while project-based programs accounted for 74.9% of total credit hours delivered [5][10] - Revenues from research-based learning and overseas studies counseling increased by 4.6% in Q4 2025 due to more service delivery for in-school art classes [6] Market Data and Key Metrics Changes - Total student enrollment for Q4 2025 was 921, down from 1,038 in the prior year period, reflecting normalized demand for services [16] - Total credit hours delivered decreased by 10.5% compared to the prior year period [17] Company Strategy and Development Direction - The company aims to maintain its leading position in China's creative arts education industry by leveraging its skilled teaching team, high-quality offerings, and global partnerships [18] - Plans include optimizing the service portfolio, enhancing classroom utilization, expanding online course offerings, and consolidating campuses in less active markets to improve operational efficiency [19] Management's Comments on Operating Environment and Future Outlook - Management noted that overall student demand normalized in 2025 following a surge in enrollment the previous year, impacting revenues [4] - A strong pipeline of research-based learning projects is anticipated for Q1 2026, including the Finland Sustainable Design & Art Research Program [20] Other Important Information - The company recorded a net loss attributed to ACG of RMB 26.3 million in Q4 2025, compared to a net income of RMB 13.3 million in the prior year [12] - As of December 31, 2025, the company had RMB 85.2 million in cash and cash equivalents, total assets of RMB 408.3 million, and total liabilities of RMB 336.3 million [16] Q&A Session Summary Question: No questions were raised during the Q&A session - There were no questions from participants during the call [23]

Financial Data and Key Metrics Changes - Total net revenue for Q4 2025 was RMB 89.1 million, a decrease of 11.7% compared to Q4 2024, primarily due to lower contributions from portfolio training programs and overseas study counseling services [9] - Gross profit for Q4 2025 was RMB 30.2 million, down from RMB 63.7 million in Q4 2024, with a gross margin of 56.4% compared to 63.1% in the prior year [9] - Total operating expenses were RMB 73.3 million in Q4 2025, an increase from RMB 46.8 million in Q4 2024, primarily due to a one-time goodwill impairment charge of RMB 33.9 million [10] - For the full year 2025, total net revenue was RMB 268.1 million, flat compared to the prior year, with a gross profit of RMB 130.3 million, a decrease of 7.8% from RMB 141.3 million in 2024 [11][12] Business Line Data and Key Metrics Changes - The main revenue contributor in Q4 2025 was the portfolio training service, accounting for 68.8% of total net revenues, while project-based programs accounted for 74.9% of total credit hours delivered, up from 66.8% in Q4 2024 [5][9] - Revenues from research-based learning and overseas studies counseling increased by 4.6% in Q4 2025 due to more service delivery for in-school art classes [6] Market Data and Key Metrics Changes - Total student enrollment for Q4 2025 was 921, down from 1,038 in the prior year period, reflecting normalized demand for services [15] - Total credit hours delivered decreased by 10.5% compared to the prior year period [15] Company Strategy and Development Direction - The company aims to maintain its leading position in China's creative arts education industry by leveraging its skilled teaching team, high-quality offerings, and global partnerships [16] - Plans include optimizing the service portfolio, enhancing classroom utilization, expanding online course offerings, and consolidating campuses in less active markets to improve operational efficiency [17] - A strong pipeline of research-based learning projects is anticipated for Q1 2026, including the Finland Sustainable Design & Art Research Program [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that overall student demand normalized in 2025 following a surge in enrollment the previous year, impacting revenues [4] - The company remains focused on driving positive student outcomes and enhancing its service portfolio to cater to diverse student needs [19][20] Other Important Information - The company recorded a net loss attributed to ACG of RMB 26.3 million in Q4 2025, compared to a net income of RMB 13.3 million in the prior year [11] - As of December 31, 2025, the company had RMB 85.2 million in cash and cash equivalents, total assets of RMB 408.3 million, and total liabilities of RMB 336.3 million [15] Q&A Session Summary Question: No questions were raised during the Q&A session - There were no questions from participants during the call [22]

Financial Data and Key Metrics Changes - As of December 31, 2025, the company had cash and cash equivalents of $3.5 million, an increase from $913,000 as of December 31, 2024 [23] - The net loss for the year ended December 31, 2025, was $15.7 million, an improvement from a net loss of $23.8 million in the prior year [23] - Loss per share for the fiscal year ending December 31, 2025, was $2.13, compared to $5.55 for the prior period [24] Business Line Data and Key Metrics Changes - The company is currently pre-revenue, with operating expenses expected to increase as it prepares for commercial production of battery-grade lithium carbonate [22] - Net cash used in operating activities totaled $8.3 million for the current fiscal year, compared to $9.7 million for the prior year [25] - Net cash used in investing activities was $3.4 million for the current fiscal year, down from $4.8 million for the prior year [25] Market Data and Key Metrics Changes - Global lithium-ion battery demand grew roughly 20% in 2025, driven by both EVs and rapidly expanding battery energy storage systems [5] - Battery-grade lithium carbonate is currently trading in the $24,000 per metric ton range, up three times from its lows in 2025 [7] Company Strategy and Development Direction - The company is focused on securing project-level financing aligned with construction, with the majority of capital expected to be funded through a combination of debt and strategic equity [8][30] - The Muskogee Lithium Refinery is designed to produce up to 50,000 metric tons per year of battery-grade lithium carbonate at full capacity [15] - The company aims to strengthen its commercial foundation through additional feedstock discussions and advancing potential offtake and strategic partnerships [30] Management's Comments on Operating Environment and Future Outlook - The management highlighted that the U.S. cannot scale grid storage, AI infrastructure, defense electrification, or EVs without secure access to battery-grade lithium [4] - The need for domestic lithium refining capacity in the United States remains clear, with a focus on executing key milestones required to secure project finance and advance the refinery into construction [30] Other Important Information - The company received its air quality construction permit from the Oklahoma Department of Environmental Quality, allowing the project to proceed with construction [14] - The company has been active in community engagement and workforce initiatives, reflecting its commitment to being an active partner in the communities where it operates [16][17] Q&A Session Summary - No questions were asked during the Q&A session, and the call concluded without any inquiries from participants [31]

Financial Data and Key Metrics Changes - As of December 31, 2025, the company had cash and cash equivalents of $3.5 million, up from $913,000 as of December 31, 2024 [24] - The net loss for the year ended December 31, 2025, was $15.7 million, an improvement from a net loss of $23.8 million in the prior year [24] - Loss per share for the fiscal year ending December 31, 2025, was $2.13, compared to $5.55 for the prior period [25] Business Line Data and Key Metrics Changes - The company is currently pre-revenue, with operating expenses expected to increase as it prepares for commercial production of battery-grade lithium carbonate [24] - Net cash used in operating activities totaled $8.3 million for the current fiscal year, compared to $9.7 million for the prior year [26] - Net cash used in investing activities was $3.4 million for the current fiscal year, down from $4.8 million for the prior year [26] Market Data and Key Metrics Changes - Global lithium-ion battery demand grew roughly 20% in 2025, driven by both EVs and rapidly expanding battery energy storage systems [5] - Battery-grade lithium carbonate is currently trading in the U.S. at around $24,000 per metric ton, up three times from its lows in 2025 [6] Company Strategy and Development Direction - The company is focused on advancing one of the largest planned lithium refineries in the U.S. and is transitioning into the next stage of project development, including securing project-level financing [4][8] - Strategic initiatives include an exclusive licensing agreement for lithium brine material concentration technology and partnerships with Ohio State to advance lithium refining technologies [10] - The company aims to produce up to 50,000 metric tons per year of battery-grade lithium carbonate at full capacity [16] Management's Comments on Operating Environment and Future Outlook - Management highlighted the critical gap in the supply chain for processing raw lithium into battery-grade materials and emphasized the need for domestic lithium refining capacity in the U.S. [5][31] - The company is actively pursuing multiple funding options and aims to secure the right financing partners to move the project from development into construction [31] Other Important Information - The company received its air quality construction permit from the Oklahoma Department of Environmental Quality, allowing the project to proceed with construction [15] - The company has been engaging with community leaders and policymakers to strengthen domestic critical mineral supply chains [17][18] Q&A Session Summary - No questions were asked during the Q&A session, and the call concluded without any inquiries from participants [32]

Financial Data and Key Metrics Changes - Total revenue for the year ended December 31, 2025, was $3.09 million, a decrease from $3.5 million in 2024, primarily due to lower R&D collaboration activity and reduced license and milestone revenue, partially offset by a $1.86 million increase in grant revenue from the Gates Foundation and CEPI [19][20] - Cost of R&D revenue declined to $0.6 million in 2025 from $1.2 million in 2024, while internal R&D expenses increased modestly to $2.16 million in 2025 from $2.04 million in 2024 [19][20] - Net loss was $7.36 million or $0.23 per share compared to a net loss of $5.81 million or $0.20 per share in 2024 [20] Business Line Data and Key Metrics Changes - Life sciences is the most advanced business line, focusing on recombinant animal-free proteins for cell culture media and molecular biology workflows, with significant market demand [5][10] - The company launched recombinant human albumin in early 2026, which is expected to generate recurring revenue through a profit-sharing arrangement with Proliant Health & Biologicals [7][10] - The food and nutrition segment is expanding with agreements to develop animal-free recombinant bovine alpha-lactalbumin and human lactoferrin, targeting global health and nutrition markets [11][12] Market Data and Key Metrics Changes - The life sciences market is shifting towards recombinant, high-quality, and scalable alternatives to traditional animal-derived inputs, which aligns with the company's production platforms [5][10] - The demand for animal-free proteins and functional ingredients is increasing globally, driven by sustainability trends [10][11] Company Strategy and Development Direction - The company aims to transition from a development stage platform to a commercial product-driven biotechnology business with multiple revenue paths [4] - Strategic partnerships, such as with Fermbox and IBT Bioservices, are crucial for scaling manufacturing and market penetration [13][14] - The focus is on executing product sales in life sciences, advancing partner-led programs in food and nutrition, and expanding bioindustrial applications [72] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the transition phase reflected in current financials but emphasizes significant advancements towards commercialization and product launches [4][72] - The company expects increasing repeat orders and revenue growth through 2026 and beyond as products move into routine use [10][72] - Management is optimistic about the potential for new product launches and collaborations to drive future revenue [21][72] Other Important Information - The company has approximately $8.6 million in cash equivalents and plans disciplined cash usage while prioritizing high-impact R&D programs [21][22] - An ATM facility has been established for flexibility in accessing capital, allowing the company to be proactive in favorable market conditions [22] Q&A Session Summary Question: Timing and ramp of product revenues - Management anticipates a slow ramp in product revenues as products need to be qualified for use in customer workflows, with a focus on signing more distribution agreements for larger volume opportunities [25][27] Question: Upfront license fees in collaborations - The potential for upfront license fees depends on the product and market stage, with a push for larger fees for more developed products [28][30] Question: Internal changes to manage new partnerships - The expansion of partnerships enhances internal capabilities, with partners like Fermbox and IBT providing dedicated sales and manufacturing support [36][37] Question: Control over pricing - Pricing control varies by product and market, with greater flexibility in segments where the company has more control over the product [38][40] Question: Breakeven timeline - Management aims to achieve breakeven as quickly as possible but emphasizes the importance of making decisions that are in the best long-term interest of the company [46][47] Question: Impact of energy environment on cultured food - Regulatory scrutiny and consistency in production are significant factors driving the shift towards non-animal proteins, alongside energy considerations [51][53] Question: Opportunities in biopharmaceuticals - The company sees opportunities beyond pandemic preparedness, with potential for seasonal vaccines and other health needs [58][60] Question: Grant revenue recognition - Grant revenue is recognized based on the percentage of completion of the project, not on a straight-line basis [61]

Financial Data and Key Metrics Changes - Adjusted earnings per share for the third quarter were 43 cents, compared to 44 cents in the same quarter last year [15] - Consolidated net sales for the quarter were $927 million, up 5.8% year-over-year, and 3.8% higher organically [15] - Orders for the quarter grew to $932 million, up 9.2% as reported and 7.2% higher on an organic basis [15] - Consolidated backlog was $712 million at quarter end, up 3.7% from a year ago [15] - Third quarter consolidated gross margin increased by 20 basis points to 38.1% [16] Segment Performance Changes - North America Contract segment net sales were $489 million, up 4.4% on a reported basis and 4.1% higher organically [17] - Orders in the North America Contract segment increased to $491 million, up 13.1% on a reported basis and 12.8% organically [17] - International Contract segment net sales were $157 million, up 7.8% on a reported basis and 1.9% organically [18] - Global Retail segment net sales were $281 million, up 7.1% on a reported basis and 4.4% organically [19] Market Data and Key Metrics Changes - In Global Retail, comparable sales increased by 5.5%, with North America region comparable sales growth of 3.9% [9] - Sales strength was noted in India, China, Japan, Southern Europe, Germany, and the U.K. [8] Company Strategy and Industry Competition - The company is focused on long-term value creation through sustained revenue growth, margin expansion, cash generation, and shareholder returns [12] - The company plans to open 3-4 more retail locations before the end of fiscal 2026, aiming to double the DWR Herman Miller store footprint over the next several years [10] - The company is preparing for its largest industry trade show, Design Days, showcasing new products from various brands [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the impact of strategic initiatives despite macroeconomic and geopolitical uncertainties [4] - The company anticipates some impact on fourth quarter sales and costs due to the ongoing conflict in the Middle East [7] - Management noted that the consumer remains resilient, with continued demand despite rising prices and inflation concerns [41] Other Important Information - The company reduced its debt by $41 million, lowering the debt to EBITDA ratio to 2.75 times [16] - A quarterly cash dividend of $0.1875 per share was declared, with a yield of 3.9% based on the closing stock price [17] Q&A Session Summary Question: Impact of weather on business - Management noted lower traffic and store closures due to severe weather, primarily impacting the retail segment [26][27] Question: Cost pressures from geopolitical events - Management indicated potential increases in costs for plastics and other materials due to rising oil prices, but no significant impacts had been observed yet [29][40] Question: Office environment outlook - Management reported continued momentum in North America, with robust demand and architectural billings moving in the right direction [34] Question: Trends in government contracts - Management acknowledged a slowdown in federal government business due to geopolitical conflicts but noted ongoing activity in certain projects [44] Question: Retail store openings and costs - Management expects to maintain a similar pace of store openings next year, with incremental costs remaining consistent [63] Question: Product assortment growth - Management highlighted growth in the lifestyle category and ongoing investments in the gaming portfolio as key areas for expansion [65]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $10.8 million, down from $11.5 million in Q3 2025, impacted by migration activities to the new platform [11] - Cash decreased to $9.9 million from $10.3 million at the end of Q3 2025, primarily due to the timing of customer payments [12] - Anticipated revenue for Q1 2026 is expected to be in the range of Q4 2025 levels, with Adjusted EBITDA projected to be $500,000 or more [12] - For Q2 2026, revenue is expected to sequentially increase compared to Q1 2026, with Adjusted EBITDA potentially exceeding $1 million [13] Business Line Data and Key Metrics Changes - The company completed the migration of approximately 1,000 customers to the new Marchex Engage platform, which is expected to enhance revenue growth and margin expansion in 2026 [8] - New product capabilities have been significantly expanded, including a unified user interface and vertical AI capabilities [8] Market Data and Key Metrics Changes - The company is focusing on large vertical markets such as automotive, home services, healthcare, and advertising, leveraging AI capabilities to deliver industry-specific solutions [10] - The potential combination with Archenia is expected to create a vertically focused AI-driven customer acquisition platform, enhancing market reach and revenue opportunities [17] Company Strategy and Development Direction - The company aims to evolve from providing strategic analytics to delivering comprehensive AI-powered bundled solutions that address customer acquisition and optimization needs [4][5] - The focus is on leveraging AI to develop new products that deliver high customer value and create new revenue opportunities [6] - The proposed acquisition of Archenia is seen as a strategic move to enhance product offerings and market position [15][17] Management's Comments on Operating Environment and Future Outlook - Management believes the company is at a positive inflection point, with significant opportunities for growth driven by AI advancements [4] - The company anticipates that the combination of increasing revenue and lower operating expenses will lead to Adjusted EBITDA margins of 10% or more in 2026 [13][18] - Management acknowledges the current stock price does not reflect the company's value and is focused on delivering financial results to validate their growth story [28] Other Important Information - The company has engaged a new investor relations firm to enhance outreach and communication with investors [29] - A share buyback program of 3 million shares is authorized, with ongoing assessments of options to enhance shareholder value [28] Q&A Session Summary Question: Feedback on selling efforts for combined capabilities - Management reported positive feedback from joint sales calls and multiple orders from the installed customer base for new products [23] Question: Opportunity set inside the installed base - The top 50 customers represent about 80% of revenue, and the company believes a $100 million revenue opportunity is achievable with the existing customer base [25] Question: Bookings growth - Bookings were similar to the prior quarter, with expectations of acceleration as new solutions are introduced [35] Question: Call volumes and seasonal patterns - Call volumes have been consistent, with customer expansion and upselling new products being the primary growth drivers [37]

Financial Data and Key Metrics Changes - Total revenue for the year ended December 31, 2025, was $3.09 million, a decrease from $3.5 million in 2024, primarily due to lower R&D collaboration activity and reduced license and milestone revenue, partially offset by a $1.86 million increase in grant revenue from the Gates Foundation and CEPI [19] - Loss from operations was $7.19 million in 2025 compared to $5.9 million in the prior year, while net loss was $7.36 million or $0.23 per share compared to a net loss of $5.81 million or $0.20 per share in 2024 [20] Business Line Data and Key Metrics Changes - The life sciences segment is the most advanced, focusing on recombinant animal-free proteins for cell culture media and molecular biology workflows, with significant market potential [5][10] - Recombinant human albumin was commercially launched in early 2026, marking a significant milestone in the life sciences segment [7] - The food and nutrition segment is expanding with agreements to develop animal-free recombinant bovine alpha-lactalbumin and human lactoferrin, targeting global health and nutrition markets [11][12] Market Data and Key Metrics Changes - The markets for recombinant proteins are shifting away from traditional animal-derived inputs towards high-quality, scalable alternatives, aligning with the company's production platforms [5] - The demand for animal-free proteins is increasing globally, driven by regulatory scrutiny and the need for consistency in food and nutrition products [54] Company Strategy and Development Direction - The company aims to transition from a development stage platform to a commercial product-driven biotechnology business, focusing on multiple revenue paths [4] - Strategic partnerships, such as with Fermbox and IBT Bioservices, are crucial for scaling manufacturing and accelerating market penetration [13][8] - The company is leveraging its Dapibus platform for cost-effective production of proteins, targeting both high-volume and premium applications [10] Management's Comments on Operating Environment and Future Outlook - Management emphasizes the importance of execution in scaling product sales and advancing partner-led programs, with expectations for increasing conversion into product sales and recurring revenue through 2026 and beyond [72] - The company is focused on maintaining disciplined cash usage while prioritizing high-impact R&D programs and grant-funded activities [21] Other Important Information - The company has established an ATM facility to provide flexibility in accessing capital, allowing for opportunistic funding based on market conditions [22] - The company ended 2025 with approximately $8.6 million in cash equivalents, restricted cash, and investment-grade securities, providing a runway into 2027 [21] Q&A Session Summary Question: Timing and ramp of product revenues - Management anticipates a slow ramp in product revenues as products need to be qualified for use in workflows, with a focus on signing more distribution agreements for larger volume opportunities [26][27] Question: Upfront license fees in collaborations - The potential for upfront license fees depends on the product and market, with a push for larger fees when products are further along in development [28][29][30] Question: Internal changes to manage new partnerships - The expansion of partnerships enhances internal capabilities, with partners like Fermbox and IBT providing dedicated business development and manufacturing support [36][37] Question: Control over pricing - The company has varying degrees of control over pricing depending on the market and product, with greater flexibility in segments where they have more control [38][39] Question: Breakeven timeline - Management aims to achieve breakeven as quickly as possible but emphasizes the need for realistic planning and long-term strategy [46][47] Question: Impact of energy environment on cultured food - Regulatory scrutiny and consistency are driving shifts in the food space, with a focus on scalable non-animal proteins [53][54] Question: Seasonal vaccines in biopharmaceutical programs - There are opportunities for seasonal vaccines beyond pandemic preparedness, with ongoing collaborations to advance various vaccine programs [58][59]

Financial Data and Key Metrics Changes - For the full year 2025, total revenue increased 71% year-over-year to $33.3 million, with fourth-quarter revenue increasing 53% to $7.5 million [16] - Adjusted EBITDA for the full year was $4.1 million, approximately 12.3% of revenue, reflecting an 81% year-over-year increase [17] - Net income for the full year was $1.2 million, representing about 4% of revenue, which is a 91% year-over-year increase [17] Business Line Data and Key Metrics Changes - The distribution network grew to 885 brokers, TPAs, and agencies, marking a 34% year-over-year increase [16] - Enrolled employees increased to 22,515, a 23% year-over-year increase, indicating strong adoption of the AI-enabled underwriting marketplace [16] Market Data and Key Metrics Changes - The company operates within an estimated $0.9 trillion self-funded healthcare market, with current scale representing only a fraction of the total addressable opportunity [6] - The company believes it remains at an early stage of market penetration, with less than 0.1% penetration among the 1.1 million insurance brokers in the U.S. [6] Company Strategy and Development Direction - The company aims to scale its platform and accelerate adoption, focusing on expanding distribution and investing in platform development and AI capabilities [12] - A three-year rate stabilization program is being advanced to address pricing volatility, which is expected to deepen client relationships and improve retention [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential, with full-year 2026 revenue guidance of $45 million to $50 million, representing approximately 35% to 50% year-over-year growth [13] - The company is focused on compressing time to revenue, enabling new features to scale within 1-2 quarters compared to traditional insurance environments [13] Other Important Information - The company generated $3.1 million of positive operating cash flow for the full year 2025, with accounts receivable days reduced to 14 days from 29 days in 2024 [22] - The company is building partnerships with Ciklum and AWS to strengthen its technology foundation and enhance its AI-driven platforms [14] Q&A Session Summary Question: Feedback on larger employer offering - Management noted that the sales cycle for larger employers is long, but they are starting to see sales pick up, with a product launch expected to speed up the process [30] Question: Feedback on the Three-Year Rate Stabilization offering - Management indicated strong interest from government entities and municipalities, with beta testing underway and an official launch anticipated in the second half of the year [34] Question: Expectations for renewals in large employer and Three-Year Rate Stabilization - Management clarified that most current business is from small to medium-sized groups, with significant renewals expected primarily in January [43] Question: Insights on physiological data and claims data integration - Management is beta testing a new solution that integrates physiological data from wearable devices with claims data to generate actionable insights [44] Question: Interest in partnerships for service expansion - Management confirmed ongoing discussions for potential affiliations to expand service offerings, emphasizing the need for a highly functional sales team [51]

Financial Data and Key Metrics Changes - Adjusted earnings per share for the third quarter were $0.43, a slight decrease from $0.44 in the same quarter last year [15] - Consolidated net sales reached $927 million, up 5.8% year-over-year, with organic growth of 3.8% [15] - Orders grew to $932 million, reflecting a 9.2% increase as reported and 7.2% organic growth [15] - Consolidated backlog was $712 million at quarter end, up 3.7% from a year ago [15] - Gross margin increased by 20 basis points to 38.1%, driven by strength in the North America Contract segment [16] Segment Performance Changes - North America Contract segment net sales were $489 million, up 4.4% reported and 4.1% organically, with orders increasing to $491 million, up 13.1% reported and 12.8% organically [17] - International Contract segment net sales were $157 million, up 7.8% reported but only 1.9% organically, with orders at $160 million, up 0.7% reported but down 4.3% organically [18] - Global Retail segment net sales were $281 million, up 7.1% reported and 4.4% organically, with orders improving to $280 million, up 7.9% reported and 5.1% organically [19] Market Data and Key Metrics Changes - The company noted strong sales in India, China, Japan, Southern Europe, Germany, and the U.K. within its international business [9] - In North America, comparable sales growth in the Global Retail segment was 3.9%, with overall segment comparable sales increasing by 5.5% [9][10] Company Strategy and Industry Competition - The company is focused on expanding its retail footprint, with plans to open 14-15 new stores in the U.S. by the end of fiscal 2026 [10] - Strategic levers for North American retail growth include new store openings, expanded product assortment, e-commerce acceleration, and increased brand awareness [10] - The company is optimistic about its long-term growth opportunities in the Middle East despite current geopolitical disruptions [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the impact of strategic initiatives despite macroeconomic and geopolitical uncertainties [4] - The company anticipates some impact on fourth-quarter sales and costs due to the ongoing conflict in the Middle East [7][21] - Management noted that the consumer remains resilient, particularly in the premium segment, despite rising prices and inflation concerns [40] Other Important Information - The company reduced its debt by $41 million during the quarter, lowering its debt to EBITDA ratio to 2.75 times [16] - A quarterly cash dividend of $18.75 per share was declared, with a yield of 3.9% based on the previous closing stock price [17] Q&A Session Summary Question: Impact of weather on business - Management acknowledged lower traffic and store closures due to severe weather, primarily affecting the retail segment [25][27] Question: Cost pressures from geopolitical events - Management indicated potential increases in costs for plastics and other materials due to rising oil prices, but noted that they have not yet seen significant impacts [28][29] Question: Office environment outlook - Management reported continued momentum in North America, with robust demand and architectural billings, though caution was noted in regions affected by geopolitical conflicts [34] Question: Retail segment performance and store openings - Management expects to maintain a similar pace of store openings in the next fiscal year, with incremental costs remaining consistent [63] Question: Product assortment and growth opportunities - The company is focusing on expanding its lifestyle category and gaming portfolio, with significant progress noted in upholstery and bedroom storage [65]