Financial Data and Key Metrics Changes - PennyMac Mortgage Investment Trust (PMT) reported a net income of $42 million for Q4 2025, translating to a 13% annualized return on common equity, with diluted earnings per share at $0.48, exceeding the quarterly dividend of $0.40 per share [2][10] - Book value per share increased to $15.25 at year-end from $15.16 on September 30 [2] - The total debt-to-equity ratio rose to approximately 10-to-1 from 9-to-1 at the end of Q3 2025, reflecting growth in non-recourse debt associated with securitizations [14] Business Line Data and Key Metrics Changes - PMT completed 19 securitizations in 2025, totaling $6.7 billion in UPB, a significant increase from 2 securitizations in 2024 [3] - Retained investments from these securitizations grew to $528 million, up nearly tenfold from $54 million in 2024 [3] - In Q4 2025, PMT completed 8 securitizations totaling $2.8 billion in UPB and retained $184 million of new investments [7] Market Data and Key Metrics Changes - Approximately 60% of PMT's shareholders' equity is deployed to seasoned investments in mortgage servicing rights (MSRs) and GSE credit risk transfer investments [6] - The weighted average coupon of the loans underlying the MSR investment is 3.9%, providing stable cash flows [6] - The UPB of loans acquired from PFSI's correspondent production totaled $3.7 billion in Q4 2025, with PMT purchasing 17% of total conventional conforming correspondent production [12] Company Strategy and Development Direction - PMT aims to optimize returns by recycling capital into higher-yielding assets, targeting returns on equity in the 13%-15% range [8] - The company leverages its relationship with PFSI to access a consistent and high-quality pipeline of loans for investment [4] - PMT expects to complete approximately 30 securitizations in 2026, with targeted returns on equity for retained investments in the low to mid-teens [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in PMT's ability to generate earnings that support dividends and drive long-term shareholder value [9] - The company noted that while prepayment speeds have increased, they expect to offset declines in profitability through additional recapture from PFSI [16][17] - Management highlighted a robust demand for securitizations in January 2026, indicating a supportive market environment [40] Other Important Information - PMT raised $150 million of new unsecured financing through opportunistic reopenings of its Exchangeable Senior Notes due in 2029 [13] - The company is considering the sale of MSRs for risk management purposes if higher returning assets become available [35] Q&A Session Summary Question: Return expectations for the interest rate strategy - Management indicated that prepayments are expected to remain elevated, but they anticipate growth in recapture through PFSI [16][17] Question: Competition in the non-agency space - Management noted healthy competition from companies like Rocket Mortgage and UWM, but stated that they have been outperforming these competitors [21] Question: Financing costs for securitization - Management described a competitive market for financing, benefiting from robust demand for securitizations [28][40] Question: Capacity of the correspondent channel - Management expressed confidence in the capacity to handle potential increases in demand from GSE programs, noting excess capacity in the sector [30][31] Question: Selling MSRs for risk management - Management stated they would consider selling MSRs if higher returning assets are available, highlighting their agility in managing the portfolio [35] Question: Spread behavior in the non-agency market - Management reported stable to tightening spreads in the non-agency space, supporting continued securitization activity [40][41]

Financial Data and Key Metrics Changes - PennyMac Mortgage Investment Trust (PMT) reported a net income of $42 million for Q4 2025, translating to a 13% annualized return on common equity and diluted earnings per share of $0.48, exceeding the quarterly dividend of $0.40 per share [2][10] - Book value per share increased to $15.25 at year-end from $15.16 on September 30 [2] - The total debt-to-equity ratio rose to approximately 10-to-1 from 9-to-1 at the end of Q3 2025, reflecting growth in non-recourse debt associated with securitizations [14] Business Line Data and Key Metrics Changes - PMT completed 19 securitizations in 2025, totaling $6.7 billion in UPB, a significant increase from 2 securitizations in 2024 [3] - Retained investments from these securitizations grew to $528 million, up nearly tenfold from $54 million in 2024 [3] - In Q4 2025, PMT completed 8 securitizations totaling $2.8 billion in UPB and retained $184 million of new investments [7] Market Data and Key Metrics Changes - Approximately 60% of PMT's shareholders' equity is deployed to seasoned investments in mortgage servicing rights (MSRs) and GSE credit risk transfer investments [6] - The weighted average coupon of the loans underlying the MSR investment is 3.9%, providing stable cash flows [6] - The UPB of loans acquired from PFSI's correspondent production totaled $3.7 billion in Q4 2025, with $2.9 billion being conventional conforming volume [12] Company Strategy and Development Direction - PMT aims to optimize returns by recycling capital into higher-yielding assets, targeting returns on equity in the 13%-15% range [8] - The company is focused on leveraging its relationship with PFSI to enhance its origination capabilities and maintain a consistent pipeline of high-quality loans [4][5] - PMT expects to complete approximately 30 securitizations in 2026, with targeted returns on equity for retained investments in the low to mid-teens [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in PMT's ability to generate earnings that support dividends and drive long-term shareholder value [9] - The company noted that while prepayment speeds are expected to remain elevated, they anticipate a dilution effect on profitability as the portfolio grows at a slower pace [17][18] - Management highlighted the competitive landscape in the non-Agency space, noting healthy activity from competitors but also PMT's strong performance in originations [21] Other Important Information - PMT raised $150 million of new unsecured financing during the quarter [13] - The company plans to retire $345 million in Exchangeable Senior Notes due in 2026 using existing financing capacity [14] Q&A Session Summary Question: Return expectations for the interest rate strategy - Management discussed the limited responsiveness of MSRs to interest rate changes and the expectation of increased recapture through PFSI [16] Question: Competition in the non-Agency space - Management noted healthy competition from companies like Rocket Mortgage and UWM but emphasized PMT's strong origination performance [21] Question: Financing costs for securitizations - Management indicated a competitive market for financing and discussed the implementation of a facility without a mark-to-market feature for risk management [28] Question: Origination capacity under affordability-driven initiatives - Management expressed confidence in the system's capacity to handle increased demand from potential GSE programs [30] Question: Selling MSRs for risk management - Management stated they would consider selling MSRs if higher returning assets become available, highlighting their agility in managing the portfolio [35] Question: Spread behavior in the non-Agency market - Management reported stable to tightening spreads in the non-Agency space, supporting continued securitization activity [40]

Financial Data and Key Metrics Changes - The company reported a net income of $42 million for Q4 2025, translating to a 13% annualized return on common equity, with diluted earnings per share at $0.48, exceeding the quarterly dividend of $0.40 per share [2][10] - Book value per share increased to $15.25 at year-end from $15.16 on September 30 [2] - The total debt-to-equity ratio rose to approximately 10-to-1 from 9-to-1 at the end of Q3 2025, reflecting growth in non-recourse debt associated with securitizations [15] Business Line Data and Key Metrics Changes - The company completed 19 securitizations in 2025, totaling $6.7 billion in UPB, a significant increase from 2 securitizations in 2024 [3] - Retained investments from securitizations grew to $528 million, up nearly tenfold from $54 million in 2024 [3] - The correspondent production segment reported a pre-tax loss of $1 million due to spread widening on jumbo loans and lower overall channel margins [12] Market Data and Key Metrics Changes - Approximately 60% of shareholders' equity is deployed to seasoned investments in MSRs and GSE credit risk transfer investments, with MSRs accounting for 46% of shareholders' equity [5] - The weighted average coupon of the loans underlying the MSR investment is 3.9%, providing stable cash flows [5] - The UPB of loans acquired from PFSI's correspondent production totaled $3.7 billion, with $2.9 billion being conventional conforming volume [12] Company Strategy and Development Direction - The company aims to optimize returns by recycling capital into higher-yielding assets, targeting ROEs in the 13%-15% range [8] - The relationship with PFSI is highlighted as a competitive advantage, providing a consistent pipeline of loans for investment [4] - The company expects to complete approximately 30 securitizations in 2026, with targeted returns on equity for retained investments in the low to mid-teens [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate earnings that support dividends and drive long-term shareholder value [9] - The company anticipates that prepayment speeds will remain elevated but expects to offset declines in profitability through additional recapture [17][18] - Management noted that the market for securitizations remains robust, with stable to tightening spreads in the non-agency space [43] Other Important Information - The company raised $150 million of new unsecured financing during the quarter [14] - The MSR asset at year-end was valued at $3.6 billion, slightly down from the prior quarter due to higher levels of runoff [11] Q&A Session Summary Question: Return expectations for the interest rate strategy - Management indicated that prepayments are expected to remain elevated, but they plan to offset profitability declines through additional recapture from PFSI [17][18] Question: Competition in the non-agency space - Management noted healthy competition from companies like Rocket Mortgage and UWM, but stated that they have been outperforming in terms of originations [23][24] Question: Financing costs for securitization - Management described the financing market as competitive, with a focus on risk management through facilities that minimize mark-to-market risk [30][31] Question: MSR sales for risk management - Management is open to considering MSR sales if higher returning assets are available, highlighting their agility in managing the portfolio [37][38] Question: Spread behavior in the non-agency market - Management reported stable to tightening spreads in the non-agency space, supporting continued securitization activity [43]

Financial Data and Key Metrics Changes - The company reported over 30% revenue growth in Q4 2025, with organic growth of 5% and adjusted EBITDA growth of 30%, marking the 23rd consecutive quarter of double-digit growth [3][11] - For the full year 2025, combined revenue growth was 21%, with 6% organic growth and adjusted EBITDA growth of 26% [11][28] Business Segment Data and Key Metrics Changes - The brokerage segment experienced a revenue growth of 38% in Q4, with organic growth also at 5% [3][12] - The risk management segment, Gallagher Bassett, saw a revenue growth of 13% in Q4, including organic growth of 7% [8][9] Market Data and Key Metrics Changes - The global property and casualty insurance pricing environment showed a low single-digit increase in renewal premiums, with property lines down 5% and casualty lines up 5% overall [4][5] - The reinsurance market saw rate decreases in the teens for property, while casualty lines remained stable [6][7] Company Strategy and Development Direction - The company is focused on a two-pronged revenue growth strategy involving organic growth and mergers & acquisitions (M&A) [3][10] - The integration of AssuredPartners is progressing well, with over 300 tuck-ins and agency management system conversions planned for 2026 [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to grow despite economic conditions, with expectations of 5.5% organic growth in the brokerage segment for 2026 [8][11] - The company anticipates strong demand for employee benefits services due to rising health insurance costs and talent retention strategies [7][8] Other Important Information - The company completed 7 new mergers in Q4 2025, contributing approximately $145 million in estimated annualized revenue, bringing the total for the year to over $3.5 billion [10][11] - The company has a pipeline of over 40 term sheets signed or being prepared, representing around $350 million of annualized revenue [10] Q&A Session Summary Question: Digital Infrastructure and Construction Practices - The company emphasized its strong vertical capabilities in construction, particularly in data center projects, and highlighted the need for extensive coverage in this area [32][34] Question: Casualty Pricing Outlook - Management noted that casualty pricing remains stable, with no significant softening expected, despite property lines experiencing declines [38][41] Question: Talent Retention - The company reported stable producer retention rates and highlighted its successful recruitment through acquisitions and internships [46][49] Question: AI and Small Business Production - Management expressed confidence that AI will enhance service delivery but emphasized the continued importance of human advisors in the insurance process [55][62]

Financial Data and Key Metrics Changes - The company reported over 30% revenue growth in Q4 2025, with organic growth of 5% and adjusted EBITDA growth of 30%, marking the 23rd consecutive quarter of double-digit growth [3][13] - For the full year 2025, combined revenue growth for Brokerage and Risk Management was 21%, with 6% organic growth and adjusted EBITDA growth of 26% [13][29] Business Segment Data and Key Metrics Changes - The Brokerage segment experienced a revenue growth of 38% in Q4, with organic growth of 5% and an adjusted EBITDA margin of 32.2% [3][4] - The Risk Management segment, Gallagher Bassett, saw a revenue growth of 13% in Q4, including organic growth of 7% and an adjusted EBITDA margin of 21.6% [9][10] Market Data and Key Metrics Changes - The global P&C insurance pricing environment showed low single-digit increases in renewal premiums, with property lines down 5% and casualty lines up 5% [5][6] - The reinsurance market saw rate decreases in the teens for property, while casualty lines remained stable, indicating a buyer's market expected to persist through 2026 [7][9] Company Strategy and Development Direction - The company is focused on a two-pronged revenue growth strategy involving organic growth and mergers & acquisitions (M&A), with a strong pipeline of over 40 term sheets signed, representing around $350 million of annualized revenue [10][12] - The integration of AssuredPartners is progressing well, with successful rebranding and operational integration ahead of schedule [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to grow despite economic conditions, with expectations of 5.5% organic growth in the Brokerage segment for 2026 [9][10] - The company anticipates strong demand in Employee Benefits due to rising health insurance costs and is engaging clients with innovative solutions [8][9] Other Important Information - The company has $713 million of tax credit carryforwards and an additional $1 billion of future tax benefits related to the acquisition of AssuredPartners, which will support future M&A funding [27][28] - The company expects to have close to $10 billion available for M&A funding over the next two years [28][29] Q&A Session Summary Question: Digital infrastructure and construction practices - Management highlighted strong vertical capabilities in construction, emphasizing the company's readiness to support data center construction and related needs [33][34] Question: Casualty pricing outlook - Management noted that casualty pricing remains stable, with expectations of increases in the 7%-8% range for the upcoming year [37][39] Question: Talent retention and producer stability - Management reported stable producer retention rates, emphasizing the company's strong culture and support for sales personnel [43][46] Question: AI and its impact on small business production - Management expressed confidence that AI will enhance service delivery but emphasized the continued importance of human advisors in the insurance process [52][56]

Financial Data and Key Metrics Changes - Arthur J. Gallagher reported over 30% revenue growth in Q4 2025, with organic growth of 5% and adjusted EBITDA growth of 30%, marking the 23rd consecutive quarter of double-digit growth [3][12] - For the full year 2025, the company achieved 21% revenue growth, 6% organic growth, and 26% adjusted EBITDA growth [12][28] Business Segment Data and Key Metrics Changes - The brokerage segment saw reported revenue growth of 38% and organic growth of 5%, with an adjusted EBITDA margin of 32.2% [3][4] - The risk management segment, Gallagher Bassett, experienced 13% revenue growth, including 7% organic growth, with an adjusted EBITDA margin of 21.6% [9][10] Market Data and Key Metrics Changes - The global property and casualty insurance pricing environment showed a low single-digit increase in renewal premiums, with property lines down 5% and casualty lines up 5% [4][5] - The reinsurance market saw property reinsurance premiums down mid to high single digits, while casualty lines remained stable [6][7] Company Strategy and Development Direction - The company is focused on a two-pronged revenue growth strategy through organic growth and mergers & acquisitions (M&A), with a strong pipeline of over 40 term sheets signed, representing around $350 million of annualized revenue [11][12] - The integration of AssuredPartners is progressing well, with successful rebranding and operational integration planned for 2026 [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to grow despite economic conditions, with expectations of 5.5% organic growth in the brokerage segment for 2026 [9][10] - The company anticipates strong demand for employee benefits services due to rising health insurance costs and talent retention strategies [8][9] Other Important Information - The company has $713 million of tax credit carryforwards and an additional $1 billion of future tax benefits related to the AssuredPartners acquisition, which will support future M&A funding [26][27] - The company expects to have close to $10 billion available for M&A funding over the next two years [27][28] Q&A Session Summary Question: Digital Infrastructure and Construction Practices - The company emphasized its strong vertical capabilities in construction, particularly in data center projects, and its ability to provide comprehensive coverage for clients [29][30] Question: Casualty Pricing Outlook - Management noted that casualty rates are expected to remain stable, with increases in the 7%-8% range, despite softening in property rates [32][33] Question: Talent Retention - The company reported stable producer retention rates and highlighted its successful recruitment through acquisitions and internships [34][36] Question: AI and Small Business Production - Management discussed the role of AI in enhancing service efficiency but emphasized the continued importance of human advisors in the insurance process [40][42]

Financial Data and Key Metrics Changes - The company reported home building revenue of $359.7 million, with 763 homes sold at an average selling price (ASP) of $514,000, resulting in a home building gross margin of 14% [12][14] - Adjusted EBITDA for the first quarter was negative $11.2 million, with a diluted loss per share of $1.13, which included a litigation-related charge impacting results [13][14] - Book Value Per Share finished the quarter above $41, reflecting an increase compared to the previous year [10] Business Line Data and Key Metrics Changes - The company sold 763 homes, with a sales pace of 1.5 homes per community per month, indicating a decline in demand compared to previous periods [12] - Spec homes accounted for 70% of closings but only 61% of sales, suggesting a shift in buyer preferences [12] - Newer communities, defined as those starting sales after April 2025, represented just over 10% of first-quarter revenue but are projected to account for about 50% of fourth-quarter revenue, with ASPs and margins significantly higher than existing communities [8][12] Market Data and Key Metrics Changes - The company experienced a soft demand environment at the start of fiscal 2026, but noted improved buyer engagement and traffic in January, aligning with the previous year's sales pace [4][5] - The company anticipates selling approximately 1,100 homes in the second quarter, with an expected ASP of around $520,000-$525,000 [14] Company Strategy and Development Direction - The company is focused on enhancing balance sheet efficiency, reducing construction costs, and driving higher home building margins in the latter half of the year [4][5] - The introduction of Solar-Included homes aims to differentiate the company from competitors by offering significant utility savings, with expectations that these homes will account for 20% of business by year-end [5][34] - The company plans to execute $150 million in land sales to fund share repurchases, which are expected to be accretive for shareholders [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the current market conditions but highlighted paths to grow EBITDA and book value per share despite a slow start to the fiscal year [4][20] - The company expects to achieve a double-digit compound annual growth rate (CAGR) in book value per share through profitability and share repurchases, even in a challenging market [11][18] Other Important Information - The company has a strong liquidity position with over $340 million in total liquidity, including $121 million in unrestricted cash [18] - The company is committed to deleveraging to the low 30% range by the end of fiscal 2027, while maintaining a net leverage at or below 40% [10][18] Q&A Session Summary Question: Is the repurchase plan contingent on the timing of the $150 million profitable land sales? - Management indicated that the repurchase plan is not strictly contingent on the timing of land sales, although it will be executed over the course of the year [26] Question: What is the gross margin spread between build-to-order versus spec homes? - Management stated that the spread has historically been in the 4%-5% range and may have widened recently [27] Question: What factors are driving improved traffic and sales? - Management attributed the improved traffic to a combination of lower interest rates, stabilized home prices, and the introduction of high-efficiency homes [28][30] Question: When do Solar-Included homes expect to impact orders and closings? - Management expects that by the end of the year, solar-included communities will represent about 20% of their business, with higher margins than average [34] Question: What is the current inventory positioning heading into the new year? - Management reported a healthy inventory position, with a combined spec position down from previous levels, which is favorable for the spring selling season [64] Question: What would be more impactful for customers, rate changes or down payment assistance? - Management emphasized that a combination of wage growth and monthly payment reduction is more important for buyers than down payment assistance [67]

Financial Data and Key Metrics Changes - In Q4 2025, the company generated $58.7 million in net income, leading to an annual consolidated net income of $183.5 million, surpassing the previous record set in 2024 by approximately $6 million [4][21] - The company ended the year with cash of $425 million and total liquidity of $643 million, with a debt to total capitalization ratio of 16.3%, down from 9.6% at the end of 2024 [8][22] Business Line Data and Key Metrics Changes - The Great Park community closed sales on 13 different programs consisting of 920 home sites, while Valencia saw modest home sales with 70 new homes sold in Q4, up from 50 in Q3 [6][12] - The company closed an industrial land sale in Valencia for $42.5 million and reported a gross margin of 31.25% [20] Market Data and Key Metrics Changes - The housing market in 2025 faced challenges due to economic uncertainty, elevated interest rates, and affordability constraints, yet the company demonstrated resilience in its asset performance [5][6] - Demand for homes remained strong at The Great Park, while Valencia experienced more modest demand due to affordability issues [6] Company Strategy and Development Direction - The company's strategy focuses on maximizing the value of existing communities, maintaining a lean operating structure, matching development spending with revenue generation, and expanding through targeted growth initiatives [9] - The company aims to pursue growth opportunities while prioritizing its growth strategy to expand recurring revenues [8] Management's Comments on Operating Environment and Future Outlook - Management expects growing buyer confidence and moderating interest rates to improve demand for well-located home sites in 2026, projecting consolidated net income of approximately $100 million for the year [7][16] - The company anticipates a small loss in Q1 2026 due to no planned land sales, with the majority of income expected in the second half of the year [26] Other Important Information - The company successfully secured critical entitlement approvals in Valencia and The Great Park, enhancing long-term asset value and development potential [4][13] - Hearthstone, acquired in Q3 2025, contributed $11.8 million in management fee revenue and $3.5 million in net income, expanding the company's earnings profile [15][23] Q&A Session Summary Question: Development expenditures for Valencia and San Francisco in 2026 - Management indicated that development expenditures for both projects in 2026 would be similar to the current year's spending of about $125 million, maintaining a constant pace as development increases [32][34] Question: Clarification on entitlement approvals - Management clarified that the new entitlements in Great Park are additive to previously disclosed saleable acreage, with 100 acres of commercial land now redesignated as residential [39][42]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $347 million, exceeding the high end of guidance, driven by earlier-than-expected deal closures and a $7 million favorable true-up for Q4 shipments [14][17] - Non-GAAP earnings per share was $1.06, also above guidance, attributed to higher revenue and lower operating expenses [14][17] - Operating cash flow generated was approximately $55 million, with $70 million of common stock repurchased [15][16] Business Line Data and Key Metrics Changes - Licensing revenue was $320 million, while product and services revenue was $27 million [14] - Mobile revenue grew over 20% year-over-year, while broadcast revenue declined in the mid-teens year-over-year [16] Market Data and Key Metrics Changes - The automotive sector is a major focus, with partnerships increasing from 20 OEMs last year to over 35 this year [7][12] - Dolby Vision 2 received positive feedback at CES, with support from content providers like Peacock and TP Vision [9][54] Company Strategy and Development Direction - The company is focused on expanding its presence in automotive entertainment and enhancing the in-car experience with Dolby Atmos and Dolby Vision [5][6] - Dolby Vision 2 aims to meet evolving viewer expectations and unlock the potential of modern televisions [8][9] - The company is confident in growing Dolby Atmos, Dolby Vision, and Imaging Patents at 15%-20% per year over the next few years [13] Management's Comments on Operating Environment and Future Outlook - Management noted that while some deals came in earlier than expected, it does not indicate a broader change in the macro environment [21] - The company raised its full-year revenue guidance to $1.4 billion-$1.45 billion, reflecting strong Q1 performance and true-up adjustments [17][19] - Management remains optimistic about growth opportunities despite potential impacts from memory pricing and macroeconomic factors [60][61] Other Important Information - A dividend of $0.36 was declared, representing a 9% increase from the previous year [16] - The company ended the quarter with cash and investments of approximately $730 million [16] Q&A Session Summary Question: Impact of deal timing on revenue - Management indicated that earlier deal closures de-risk the outlook for the year but do not suggest a general change in the macro environment [21] Question: Details on the $7 million true-up - The true-up was primarily in gaming and broadcast sectors [23] Question: Growth in mobile revenue - Mobile growth is influenced by the timing of new deals and renewals, with expectations for slight growth for the full year [24] Question: Update on patent monetization strategy - The company aims for 10% of revenue from content service providers within three years, with Roku as a significant new licensee [32] Question: Guidance for Q1 performance - The guidance was positively influenced by the $7 million true-up and earlier-than-expected deals [35][44] Question: Feedback from CES - The event showcased strong interest in automotive experiences and Dolby Vision 2, with positive responses from partners and customers [50][52]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $347 million, exceeding the high end of guidance, driven by earlier-than-expected deal closures and a $7 million favorable true-up for Q4 shipments [14][17] - Non-GAAP earnings per share was $1.06, also above guidance, attributed to higher revenue and lower operating expenses [14][17] - Operating cash flow generated was approximately $55 million, with $70 million of common stock repurchased [15][16] Business Line Data and Key Metrics Changes - Licensing revenue reached $320 million, while product and services revenue was $27 million [14] - Mobile revenue grew over 20% year-over-year, while broadcast revenue declined in the mid-teens year-over-year [16] Market Data and Key Metrics Changes - The automotive sector is a major focus, with partnerships increasing from 20 OEMs to over 35 OEMs year-over-year [7] - Dolby Vision 2 received positive feedback at CES, with support from content providers like Peacock and TP Vision [9][53] Company Strategy and Development Direction - The company is raising its full-year fiscal 2026 revenue guidance to $1.4 billion-$1.45 billion, reflecting strong Q1 performance and earlier deal closures [17] - Dolby aims to grow Dolby Atmos, Dolby Vision, and imaging patents at 15%-20% per year, which now comprise nearly half of licensing revenue [13][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth opportunities despite macroeconomic uncertainties, noting that the timing of deals has improved [21][58] - The company is optimistic about the adoption of Dolby Vision 2 and the expansion of its addressable market through new partnerships and technologies [26][32] Other Important Information - A dividend of $0.36 was declared, representing a 9% increase from the previous year [16] - The company ended the quarter with cash and investments of approximately $730 million [16] Q&A Session Summary Question: Impact of deal timing on the environment - Management noted that while some deals came in earlier than expected, it should not be generalized to indicate a broader change in the macro environment [21] Question: Details on the large true-up - The $7 million true-up was primarily in gaming and broadcast sectors [23] Question: Growth in mobile revenue - Mobile growth was attributed to a combination of new deals and renewals, with expectations for slight full-year growth [24] Question: Update on patent monetization strategy - The company aims for 10% of revenue from content service providers within three years, with Roku as a significant new licensee [32] Question: Guidance for the quarter - The guidance was influenced by a combination of favorable true-up and strong deal timing, with overall performance aligning closely with expectations [44][46] Question: Feedback from CES - Positive feedback was received regarding the automotive experience and Dolby Vision 2, with significant interest from partners and customers [50][51]