Financial Performance - Revenue increased to $38 million, a 13% year-over-year increase[6] - Adjusted EBITDA was $4 million, a $15 million year-over-year improvement[6] - GAAP gross margin was 33%, a 5 percentage point increase year-over-year, while non-GAAP gross margin was 49%, a 9 percentage point increase year-over-year[6] - Annual Recurring Revenue (ARR) reached $59 million, a 3% quarter-over-quarter increase and a 22% year-over-year increase[6] Operating Metrics - Contracted Annual Recurring Revenue (CARR) was $692 million in 2Q25[12] - Storage Operating Assets Under Management (AUM) increased to 17 GWh[13] - Solar Operating AUM reached 327 GW[13] Strategic Debt Exchange - Stem completed a strategic debt exchange, reducing outstanding debt by nearly $200 million[21] - The debt exchange decreased the 2028 principal amount by nearly $230 million[21] - The company exchanged $350 million in aggregate principal amount of 2028 and 2030 Convertible Senior Notes for $155 million in new First Lien Notes due 2030 and $10 million in cash[18] Guidance - Stem reaffirmed its 2025 guidance, with expectations of tracking towards the high end on nearly all metrics[7, 30]

Financial Performance - Q3 FY25 - Total revenue reached $46 million, a 2% increase compared to Q3 FY24[31] - Identity revenue grew significantly by 24% to $20 million[31] - Deposits revenue experienced a decrease of 10%, totaling $26 million[31] - SaaS revenue showed strong growth, increasing by 23% to $19 million[31] - Adjusted EBITDA increased by 8% to $13 million, with an adjusted EBITDA margin of 28.4%, a 160 bps increase[31] - Free Cash Flow surged by 69% to $21 million[31] Key Metrics - LTM SaaS Revenue increased by 21% year-over-year, reaching $74 million, representing 41% of total LTM revenue, up 470 bps[33] - LTM Adjusted EBITDA increased significantly by 53% to $57 million[33] - LTM Free Cash Flow showed substantial growth, increasing by 345% to $56 million[33] - Free Cash Flow Conversion reached 99%, a significant increase of 6490 bps[33] Financial Outlook for FY25 - The company projects total revenue between $174 million and $177 million for FY25[56] - The company anticipates an adjusted EBITDA margin between 28% and 29% for FY25[60]

Financial Performance - Net revenue decreased from $6.7 million in Q2 2024 to $5.0 million in Q2 2025 due to the planned exit of low margin business[12] - GAAP gross margin decreased from 9.1% in Q2 2024 to -9.4% in Q2 2025, while non-GAAP gross margin decreased from 14.6% to -0.8% due to Thailand to Singapore transition and lower utilization[12] - GAAP net loss from continuing operations decreased from ($6.9 million) in Q2 2024 to ($6.0 million) in Q2 2025, with EPS from continuing operations (GAAP) diluted improving from ($0.31) to ($0.26)[12] - Non-GAAP adjusted EBITDA decreased from ($3.7 million) in Q2 2024 to ($4.6 million) in Q2 2025 due to additional costs related to the completion of production in Singapore[12] Balance Sheet and Cash Flow - Cash and cash equivalents decreased from $132.7 million in Q1 2025 to $129.6 million in Q2 2025[13] - Net operating cash use for the 9 months following Sept 30, 2024, was $10.3 million, with an expected net operating cash use of $13 million to $15 million for the 12 months following Sept 30, 2024[13, 14] Business Updates and Outlook - The company anticipates continued market uncertainty and is closely monitoring risks, having developed a pass-through strategy to protect margins[7] - Q3 2025 net revenue is expected to be $4.8 million to $5.2 million, impacted by a 19% tariff on imports from Thailand announced by the U S government in July 2025[15] - The company is executing its "Perform, Accelerate, and Transform" (P-A-T) strategy to grow sales and EBITDA[19] - The company has 100 "new" sales opportunities in the pipeline at the end of Q2 2025, with a 14% conversion rate to sales during the first half of 2025[37] - There are 19 active new product development (NPD) projects at the end of Q2 2025, including 12 customer-driven and 7 internally-driven projects[37]

Financial Performance - Q2 2025 revenue reached $35.8 million[14] - The company had 652,000 average paid members in Q2 2025[15] - Total interchange for Q2 2025 was $5.3 million[17] - Q2 2025 operating cash flow was $8.9 million[20] - Free cash flow for Q2 2025 was $6.3 million, a 10% increase year-over-year[23, 26] - Non-GAAP net loss for Q2 2025 was $(1.9) million[20] - Adjusted EBITDA for Q2 2025 was $(1.4) million[24] - The company is increasing its FY 2025 free cash flow guidance to a range of $19.0 million to $23.0 million[26] Marketing Impact - The company estimates that the F1 movie generated an equivalent value of $61.0 million in marketing dollars[36] - The F1 movie increased unaided brand awareness by 50% among the core demographic (ages 18-54)[37] - The F1 movie increased unaided brand awareness by 350% among the next generation of bottom-up adopters (ages 18-24)[42]

Financial Performance - Q2 2025 product and service revenue reached $39.8 million, a 7% sequential increase and a 10% increase compared to Q2 2024[12] - Consumable revenue increased by 11% year-over-year, with Revio pull-through in the low-to-mid $200,000s per system[12] - Instrument revenue increased sequentially but decreased by 4% year-over-year due to funding constraints[12] - Non-GAAP gross margin was approximately 38% in Q2 2025, compared to 37% in Q2 2024[45, 47] - Q2 2025 non-GAAP operating expenses were $58.1 million, an 18% decrease compared to Q2 2024[47] - Cash burn was approximately $28 million in Q2 2025, with expectations for improvement in the second half of the year[46] System Placements - 15 Revio systems were shipped in Q2 2025, with 60% going to new customers and one-third to Dx/LDT and hospital labs[12] - 38 Vega systems were shipped, with nearly 60% going to new customers[13] - Cumulative Revio shipments reached 297, and Vega shipments reached 73[14] Guidance - Full-year revenue guidance is maintained at the midpoint, narrowing the range to $155 million to $165 million, representing 1% to 7% growth over 2024[21, 22] - The company expects mid-teens growth in consumables revenue and a mid-teens decline in instrument revenue[22]

Arlo's Business Overview - Arlo is an AI-powered SaaS business in the smart security space with a focus on innovation and privacy [7] - Arlo's annual recurring revenue (ARR) is greater than $315 million, with year-over-year growth exceeding 30% [11] - Arlo has over 5 million paid subscribers and over 11 million registered accounts [11] - Arlo's LTV/CAC ratio is 3x [11] Market Opportunity - The US smart home security market is sized at $25 billion in 2025 [16] - Paid smart home security services are only 7% penetrated in the US, leaving significant room for growth [16] - Smart cameras and video doorbells have the highest subscription attach rates among smart home products, at 66% and 71% respectively [16] Q2 2025 Performance - Arlo's annual recurring revenue (ARR) reached $316 million, a 34% year-over-year increase [50] - Service revenue accounted for 60% of total revenue [50] - The service gross margin was 85% (non-GAAP) [50] - Adjusted EBITDA reached $344 million YTD, a 79% year-over-year increase [66] - Free cash flow reached $34 million YTD, a 33% year-over-year increase [67] Future Outlook - Arlo is targeting over $310 million in service revenue [82] - Arlo projects non-GAAP earnings per share of $012 to $018 for Q3 2025 and $056 to $066 for the full year 2025 [82]

Disclaimer Forward-Looking Statements Rackspace Technology has made statements in this presentation and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included in this presentation are, or could be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the safe harbor prote ...

Investor Presentation Second Quarter 2025 Accent 1 RGB: (9, 31,64) Hex: #091F40 Text 2 RGB: (123, 154, 191) Hex: #7B9ABF Accent 3 RGB: (197, 16, 54) Accent 4 RGB: (187, 186, 186) Hex: #BBBABA Accent 5 RGB: (217, 216, 214) Hex: #D9D8D6 Accent 6 RGB: (140, 140, 140) Hex: #8C8C8C Text 1 RGB: (0, 0, 0) Hex: #000000 Background 2 RGB: (231, 230, 230) Hex: #E7E6E6 In addition to U.S. GAAP financial measures, this document contains and may refer to certain non-GAAP financial measures. These non-GAAP financial measu ...

EARNINGS PRESENTATION SECOND QUARTER 2025 August 7, 2025 This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Alta's actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," ...

We define "Adjusted EBITDA" as earnings before depreciation and amortization, non-cash lease benefit or expense, share-based compensation expense, gain or loss on disposal of assets and businesses, loss on debt extinguishment and modification, preopening and related expenses, system implementation costs, impairment of assets, interest, income taxes, and other non-cash charges and non-recurring expenses that are deemed to be not indicative of our core operating results. We define "Adjusted EBITDA Margin" as ...