Financial Data and Key Metrics Changes - In 2025, the company achieved a record HIFU revenue of EUR 33.1 million, a 39% increase from EUR 23.8 million in 2024 [16] - Total revenue for 2025 was EUR 62.4 million, a 3% decrease compared to EUR 64.1 million in 2024, primarily due to a 27% decline in non-core distribution and ESWL businesses [17] - Q4 2025 HIFU revenue reached EUR 11.7 million, a 34% increase from EUR 8.8 million in Q4 2024 [18] - Gross margin for Q4 was EUR 8.1 million, with a gross margin percentage of 42.6%, down from 44.8% in Q4 2024 [19] Business Line Data and Key Metrics Changes - The HIFU segment saw a 59% increase in the number of Focal One system units sold and a 19% year-over-year increase in treatment-driven revenue [17] - The company achieved 15 Focal One placements in Q4, including 14 cash sales, marking the strongest quarter for placements and cash sales [5] - Focal One procedure volumes in the U.S. grew 28% year-over-year, reaching the highest quarterly level [10] Market Data and Key Metrics Changes - The U.S. market was a significant driver, with 10 cash sales in Q4, the highest quarterly total on record [5] - Focal One has been adopted by 55% of NCCN member institutions and 63% of SUO group teaching hospitals in the U.S. [7] - Internationally, the company achieved 4 cash sales outside the U.S., including its first systems in India and Argentina [9] Company Strategy and Development Direction - The company aims to expand penetration across leading academic centers and community hospitals, focusing on the early adoption lifecycle of the HIFU technology [24] - Plans to broaden clinical indications for Focal One, including advancements in BPH and endometriosis treatments [24] - Continued investment in technology and innovation, including AI-driven treatment planning and next-generation imaging capabilities [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2026 outlook, expecting core HIFU revenue to be between $50 million and $54 million, representing 34%-45% growth over 2025 [23] - The regulatory environment is favorable, with CMS awarding a national facility payment average of $9,671 for HIFU procedures, a 4.6% increase from 2025 [11] - The company is monitoring tariff impacts closely, budgeting about $2.5 million in tariffs for 2026 [43] Other Important Information - The company will transition to reporting in U.S. dollars starting Q1 2026 [16] - Inventory decreased to EUR 10.9 million at quarter end, reflecting disciplined inventory management [21] - Total cash and cash equivalents increased to EUR 17.4 million, primarily due to EIB Tranche A drawdown [22] Q&A Session Summary Question: Can you provide more detail on the growth in procedures versus capital sales? - Management noted strong pipelines in both U.S. and international markets, with procedure growth of 28% year-over-year in Q4 [28][30] Question: What is the expected revenue split between the first and second half of 2026? - Management anticipates Q4 to be the highest growth quarter, with less than 50% of business in the first half of the year [36] Question: How much of the non-core revenue decline is attributed to ESWL versus distribution? - ESWL accounts for roughly 20%-25% of non-core revenue, with a focus on service-only for ESWL going forward [38]

Financial Data and Key Metrics Changes - In 2025, the company achieved a record HIFU revenue of EUR 33.1 million, a 39% increase from EUR 23.8 million in 2024 [16] - Total revenue for 2025 was EUR 62.4 million, a 3% decrease compared to EUR 64.1 million in 2024, primarily due to a 27% decline in non-core distribution and ESWL businesses [17] - Q4 2025 HIFU revenue reached EUR 11.7 million, a 34% increase from EUR 8.8 million in Q4 2024 [18] - Gross margin for Q4 was EUR 8.1 million, with a gross margin percentage of 42.6%, down from 44.8% in Q4 2024 [19] Business Line Data and Key Metrics Changes - The HIFU segment saw a 59% increase in the number of Focal One system units sold and a 19% year-over-year increase in treatment-driven revenue [17] - The company achieved a record 15 Focal One placements in Q4, including 14 cash sales, with the U.S. market contributing 10 cash sales, the highest quarterly total on record [5][4] - Focal One procedure volumes in the U.S. grew 28% year-over-year in Q4 [10] Market Data and Key Metrics Changes - Focal One has been adopted by 55% of NCCN member institutions and 63% of SUO group teaching hospitals in the U.S. [7] - Internationally, the company achieved four cash sales outside the U.S., including the first Focal One system in India and Argentina [9] Company Strategy and Development Direction - The company aims to expand its penetration across leading academic centers and community hospitals, focusing on the under-penetrated market in prostate cancer [24] - Plans to broaden clinical indications for Focal One, including advancements in BPH and endometriosis treatment [24] - Continued investment in technology and innovation, including AI-driven treatment planning and next-generation imaging capabilities [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2026 outlook, expecting core HIFU revenue to be in the range of $50 million-$54 million, representing 34%-45% growth over 2025 [23] - The reimbursement landscape is improving, with a 4.6% increase in the national facility payment average for 2026 [11] Other Important Information - The company received FDA clearance for the latest evolution of Focal One robotic HIFU, introducing advanced ultrasound imaging [10] - Inventory decreased to EUR 10.9 million at quarter end, reflecting disciplined inventory management [21] Q&A Session Summary Question: Can you provide more details on the growth in procedures versus capital sales? - Management noted strong pipelines in both U.S. and international markets, with procedure growth of 28% year-over-year in Q4 and expectations for continued growth in both capital sales and procedures [28][30] Question: What is the expected revenue pattern for 2026? - Management indicated that Q4 is expected to be the highest growth quarter, with less than 50% of business anticipated in the first half of the year [37] Question: How is the non-core business expected to decline? - The non-core ESWL business is now service-only, and management is evaluating distribution agreements to determine their materiality and contribution to gross margin [39] Question: What impact do tariffs have on margins? - Management stated that U.S. revenue is impacted by tariffs on finished goods from France, budgeting about $2.5 million in tariffs for 2026 [45] Question: How has the company addressed concerns regarding cash sales? - Management expressed confidence in cash sales, noting that hospitals recognize the value of the Focal One platform, leading to a preference for cash sales over leases [48]

Financial Data and Key Metrics Changes - Net sales for Q4 2025 were $7.5 million, down from $9.7 million in the same quarter last year, primarily due to lower volumes with recurring national customers and higher promotional allowances [12] - Gross profit for Q4 2025 was $1.5 million, compared to $2.9 million in the year-ago quarter, with a gross margin of 20% versus 30% previously, driven by inventory write-offs and higher cost of goods sold [12] - Delivery and handling costs decreased by 35% to $1.1 million in Q4 2025, down from $1.7 million in the prior year [12] - Net loss improved to $3.8 million or -$0.44 per share, compared to a net loss of $4.1 million or -$1.33 per share in the year-ago quarter [13] - EBITDA was -$3.6 million in Q4 2025, compared to -$3.1 million in the year-ago quarter [13] Business Line Data and Key Metrics Changes - The company saw sequential improvements in net sales across various channels, including natural, specialty, grocery, mass, and e-commerce, driven by increased sales velocity and seasonal product launches [4][5] - The core product, Reed's Ginger Ale, remains the number one premium ginger ale in the U.S., with dollar sales growing by 13.7% over the past 52 weeks [7] Market Data and Key Metrics Changes - The company is expanding its presence in underpenetrated channels, particularly food service and convenience, which represent significant growth opportunities [6] - The company is also focusing on international expansion, particularly in the Asian market, with plans to exhibit at major trade events [9] Company Strategy and Development Direction - The company is focused on stabilizing the business and reinforcing its operational framework to support sustainable growth [4] - Key initiatives include optimizing the manufacturing network, improving plant productivity, and enhancing sourcing strategies to reduce costs [5][11] - The company plans to launch new products, including a line extension of Reed's Ginger Ale and non-alcoholic mixers, to drive incremental sales [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sequential improvement in financial metrics and emphasized the focus on executing operational priorities to drive profitable growth [15] - The company aims to improve overall operating performance and achieve consistent, profitable growth through disciplined trade spending and operational efficiency [11] Other Important Information - The company completed a $10 million public offering and uplisted its shares to the NYSE American, enhancing its financial flexibility and visibility within the investment community [10][11] Q&A Session Summary Question: How best is it to think about the cadence of distribution gains in 2026? - Management indicated that they are focused on improving placements and velocities at the store level, with a dedicated sales team working on these initiatives [17] Question: How should we think about the path to profitability and margin initiatives? - Management highlighted ongoing efforts to reduce expenses while driving growth, expecting significant improvements in the upcoming quarters [19] Question: Any additional detail on the timing of the Smarter Soda launch? - Management is working on improving flavors and execution for the Smarter Soda launch while also focusing on the new mixer line [22]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $30.1 million, a 629% increase year-over-year and nearly 200% sequentially from Q3 2025, reflecting strong demand across Ondas Autonomous Systems [32] - For the full year 2025, revenue reached $50.7 million, representing a 605% growth compared to $7.2 million in 2024, at the high end of previously issued guidance [36] - Gross profit for Q4 2025 was $12.7 million, with a gross margin of 42%, significantly improved from 21% in the prior year [33] - The net loss for Q4 2025 was $101 million, primarily due to a non-cash charge related to warrants [35] - The company ended 2025 with $594 million in cash equivalents, which increased to over $1.5 billion following a capital raise in January 2026 [40][41] Business Line Data and Key Metrics Changes - The Ondas Autonomous Systems segment showed strong organic revenue growth of 63% year-over-year, driven by deliveries of Iron Drone and Optimus systems [32] - The company announced five strategic acquisitions in Q1 2026, which are expected to enhance capabilities across multiple domains and contribute to revenue growth [11][50] Market Data and Key Metrics Changes - The joint venture ONBERG with Heidelberger is positioned to meet rising defense spending in Europe, particularly in Germany and Ukraine, where demand for autonomous systems is immediate [12][13] - The acquisition of World View adds a stratospheric sensing capability, expanding Ondas' market reach into defense, homeland security, and commercial ISR applications [15][20] Company Strategy and Development Direction - Ondas is focused on building a scaled operating platform to support global deployment and long-term growth, with a strategic emphasis on integrating acquisitions to enhance its technology portfolio [5][10] - The company aims to leverage its strong balance sheet and investor support to execute its growth strategy at scale, with a disciplined approach to M&A [43][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum and strategic roadmap, anticipating significant revenue growth in 2026, with an updated revenue target of at least $375 million [10][70] - The company is optimistic about the potential contributions from new initiatives, including the partnership with Palantir and the ONBERG joint venture, which have not yet been included in revenue forecasts [67][68] Other Important Information - The company has a robust M&A pipeline with over $500 million of potential revenue across active opportunities, focusing on quality and strategic alignment [69] - Ondas Networks has been formally adopted by the Association of American Railroads for next-generation rail communications, indicating a significant milestone for the company [46] Q&A Session Summary Question: What is the outlook for revenue growth in 2026? - The company has increased its 2026 revenue target to at least $375 million, reflecting strong growth across both core business and recent acquisitions [70] Question: How does the company plan to integrate its recent acquisitions? - The company has established a disciplined post-merger integration process to ensure efficient scaling of acquired businesses, enhancing overall capabilities and market access [69]

Financial Data and Key Metrics Changes - Net sales for Q4 2025 were $7.5 million, down from $9.7 million in the same quarter last year, primarily due to lower volumes with national customers and higher promotional allowances [12] - Gross profit decreased to $1.5 million from $2.9 million year-over-year, with gross margin dropping to 20% from 30% due to inventory write-offs and higher cost of goods sold [12] - Delivery and handling costs were reduced by 35% to $1.1 million, with costs as a percentage of net sales decreasing to 14% from 17% [12][13] - Net loss improved to $3.8 million or -$0.44 per share, compared to a loss of $4.1 million or -$1.33 per share in the prior year [13] - EBITDA was -$3.6 million, slightly worse than -$3.1 million in the year-ago quarter [13] Business Line Data and Key Metrics Changes - The company saw sequential improvements in net sales across various channels, including natural, specialty, grocery, mass, and e-commerce, driven by increased sales velocity and seasonal product launches [4][5] - The core product, Reed's Ginger Ale, remains the number one premium ginger ale in the U.S., with dollar sales growing by 13.7% over the past 52 weeks [7] Market Data and Key Metrics Changes - The company is expanding its presence in underpenetrated channels such as food service and convenience, which are seen as significant growth opportunities [6] - The company is also focusing on international expansion, particularly in the Asian market, with plans to exhibit at major trade events [9] Company Strategy and Development Direction - The company is focused on stabilizing the business and reinforcing its operational framework to support sustainable growth [4] - Key initiatives include optimizing the manufacturing network, improving plant productivity, and enhancing sourcing strategies to reduce costs [5][11] - The company plans to launch new products, including a line extension of Reed's Ginger Ale and non-alcoholic mixers, to drive incremental sales [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sequential improvement in financial metrics and emphasized the importance of focusing on customer and distributor relationships to improve placements and velocities [15][19] - The path to profitability will involve reducing expenses while driving growth, with expectations for significant changes by Q4 of the current year [19] Other Important Information - The company completed a $10 million public offering and uplisted to the NYSE American, enhancing its financial flexibility and visibility within the investment community [10][11] - The company is implementing a social media strategy to increase brand awareness and engagement [8] Q&A Session Summary Question: Distribution gains cadence in 2026 and spring resets opportunities - Management acknowledged the need for improvement in placements and emphasized a focus on velocities and increasing shelf placement in 2026 [17] Question: Path to profitability and margin initiatives - Management discussed ongoing efforts to reduce expenses while driving growth, indicating that future results will differ significantly from current performance [19] Question: Timing and improvements for the Smarter Soda launch - Management confirmed that they are working on improving flavors and execution for the Smarter Soda launch while also focusing on the new mixer line [22]

Financial Data and Key Metrics Changes - Revenue in Q3 increased by over 24% year-over-year, reaching $379 million compared to $305 million in the prior year quarter [12][13] - Adjusted EBITDA grew by 15% year-over-year to $85 million, with an adjusted EBITDA margin of 22.3% [5][13] - GAAP earnings per share were $0.92, up from $0.79 in the prior year, with adjusted earnings at $0.98 per share, up from $0.91 [12][13] - Consolidated net sales for the trailing twelve months (TTM) increased by 22% to $297 million compared to $243 million in the prior year [14] Business Line Data and Key Metrics Changes - Building Products segment net sales grew 36% year-over-year to $224 million, driven by higher volumes and acquisitions [18] - Consumer Products segment net sales increased by 11% to $155 million, supported by improved volumes and higher average selling prices [20] - Adjusted EBITDA for Building Products was $59 million with a margin of 26.3%, while Consumer Products achieved an adjusted EBITDA of $35 million with a margin of 22.9% [18][20] Market Data and Key Metrics Changes - The demand in end markets is steady, with expectations for growth as market conditions improve [10][11] - The company is not over-indexed to any specific vertical or industry, allowing for diversified growth opportunities [29] Company Strategy and Development Direction - The company is leveraging the Worthington Business System (WBS) focusing on innovation, transformation, and M&A to drive growth [6][8] - Recent acquisitions, such as LSI, are expected to enhance the company's position in engineered building systems [8][70] - The company is investing in workforce development through career accelerator programs to build future talent [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong demand in key markets and the ability to capitalize on growth opportunities [10][11] - The company is focused on maintaining operational efficiencies and improving margins while navigating a mixed economic environment [4][11] Other Important Information - The company returned $9 million to shareholders through dividends and repurchased 100,000 shares of common stock [15] - The modernization project is on track and expected to complete by mid-fiscal year 2027, with remaining capital expenditures of approximately $25 million [16] Q&A Session Summary Question: Can you talk about volume versus price in organic revenue growth? - Management indicated that both volume and pricing contributed to organic growth, with Building Products up 16% and Consumer Products up 11% [24][25] Question: Can you provide color on organic growth expectations for Q4? - Management refrained from providing specific guidance but noted that trends are expected to continue positively [29] Question: How is the tank business in data centers performing? - Management highlighted significant growth in the ASME cooling tanks for data centers, expecting continued demand over several years [34][35] Question: What is the status of the LSI acquisition? - The integration of LSI is on track, with early results meeting expectations and a strong cultural fit noted [70][71] Question: How are tariffs impacting the business? - Management believes they are net beneficiaries of tariffs, with continued market share growth in various value streams [76][77]

Financial Data and Key Metrics Changes - Revenue for Q4 FY 2026 was $106.2 million, an increase of $11.7 million or 12.4% year-over-year, reflecting a healthy demand environment [22] - Full year FY 2026 revenue was $400 million, up 14.1% year-over-year [28] - Non-GAAP gross margin for Q4 reached a record of 74.7%, an expansion of 320 basis points year-over-year [25] - GAAP net income for Q4 was $5.1 million compared to a net loss of $0.2 million in the same period last year [26] - Adjusted EBITDA for Q4 was $15 million, up 62.5% from the previous year [26] Business Line Data and Key Metrics Changes - Software revenue for Q4 was $45.9 million, an increase of $8.5 million or 22.6% year-over-year [22] - Software services revenue grew by $3.4 million to $49.3 million, primarily from support contracts and cloud-based SaaS subscriptions [23] - Recurrent revenue increased by 5.6% to $50 million, representing 47.1% of total revenue [23] Market Data and Key Metrics Changes - The company added 61 new customers in FY 2026, reflecting strong demand for its solutions globally [10] - North America is identified as a key market, with efforts to strengthen leadership and partnerships to enhance presence [11] Company Strategy and Development Direction - The company focuses on three primary growth pillars: install base expansion, new customer acquisition, and scaling in the US market [9] - The transition to subscription models is gradually increasing, driven by customer needs for continuous access to new capabilities [12] - The company aims for revenue guidance of $448 million for FY 2027, representing approximately 12% year-over-year growth [32] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand for mission-critical intelligence technology is driven by increasingly complex threats and the need for faster decision-making [7] - The company is well-positioned to address the growing reliance on artificial intelligence in operational environments [15] - Management expressed confidence in achieving targets for FY 2028, with expectations of revenue around $500 million [35] Other Important Information - The company ended FY 2026 with $116.9 million in cash and no debt, providing significant strategic flexibility [29] - An additional $20 million was approved for the share repurchase program, reflecting the board's commitment to long-term shareholder value [30] Q&A Session Summary Question: Strong bookings growth based on RPO - Management highlighted consistent demand drivers across geographies and customer segments, with several multimillion-dollar deals contributing to strong RPO [38][40] Question: US business mix and future expectations - Management indicated that approximately 25% of incremental revenue growth is expected to come from the US market, with ongoing efforts to expand presence [42] Question: Cash flow and collection delays - Management explained that cash flow from operations was impacted by delays in collections, but overall performance remained strong [43][55] Question: Guidance for FY 2027 and market conditions - Management provided insights into the guidance range, citing market volatility and the need for flexibility in projections [51][62] Question: Impact of geopolitical situations on demand - Management noted that security concerns typically translate into increased demand for their solutions, particularly in military intelligence [63][64]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $30.1 million, a 629% increase year-over-year and nearly 200% sequentially from Q3 2025, reflecting strong demand across the Ondas Autonomous Systems segment [32] - Full-year revenue for 2025 reached $50.7 million, representing a 605% growth compared to $7.2 million in 2024, at the high end of previously issued guidance [36] - Gross profit for Q4 2025 was $12.7 million, with a gross margin of 42%, significantly improved from 21% in the prior year [32] - The company ended 2025 with a pro forma cash balance of over $1.5 billion, providing significant financial flexibility for growth [11][38] Business Line Data and Key Metrics Changes - Organic revenue growth was strong, increasing 63% year-over-year, driven by continued deliveries of Iron Drone and Optimus systems [32] - The company announced five accretive acquisitions in Q1 2026, expanding capabilities across multiple domains and enhancing the financial profile [11][50] - The acquisition of World View adds a unique capability in persistent sensing in the stratosphere, enhancing the company's multi-domain ISR platform [15][25] Market Data and Key Metrics Changes - The joint venture ONBERG with Heidelberg is positioned to meet rising defense spending in Europe, particularly in Germany and Ukraine, where demand for autonomous systems is immediate [12][13] - The company is actively pursuing opportunities in the European market, which is expected to drive meaningful growth beyond existing targets [14][68] Company Strategy and Development Direction - Ondas is focused on delivering a scaled operating platform designed for global deployment and long-term growth, with a strategy that is translating into execution and financial outcomes [5][10] - The company is investing ahead of growth, particularly in the first half of 2026, to support a significant revenue ramp in the latter half of the year [11] - The strategic growth program includes a disciplined M&A capability to acquire high-quality assets at attractive valuations, enhancing the overall quality of earnings over time [63][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in carrying momentum into 2026, with an increased revenue outlook of at least $375 million, reflecting both core business strength and strategic growth initiatives [10][68] - The company anticipates higher cash usage in the first half of 2026 due to continued investments, but expects meaningful improvement in cash efficiency as revenue scales in the second half [40][68] Other Important Information - The company reported a net loss of $101 million for Q4 2025, primarily due to a non-cash charge related to warrant revaluation, which does not impact cash operations [35] - Ondas Networks has been formally adopted by the Association of American Railroads as a foundational technology provider for next-generation rail communications, indicating significant market potential [46] Q&A Session Summary Question: What is the outlook for revenue growth in 2026? - The company has increased its 2026 revenue target to at least $375 million, reflecting strong growth across both core business and contributions from recent acquisitions [68] Question: How is the company addressing the European market? - The joint venture ONBERG is a key component of the European strategy, providing local manufacturing and support to meet rising defense needs [12][14] Question: What are the expected impacts of recent acquisitions? - Recent acquisitions are expected to generate approximately $230 million in revenue in 2026, significantly enhancing the company's financial model and operating leverage [61]

Financial Data and Key Metrics Changes - Revenue in Q3 increased by over 24% year-over-year, reaching $379 million compared to $305 million in the prior year quarter [12][13] - Adjusted EBITDA grew by 15% year-over-year, totaling $85 million, with an adjusted EBITDA margin of 22.3% [5][13] - GAAP earnings per share were $0.92, up from $0.79 in the prior year, with adjusted earnings at $0.98 per share, up from $0.91 [12][13] - SG&A expenditures declined by 70 basis points as a percentage of sales [4] Business Line Data and Key Metrics Changes - Building Products segment net sales grew 36% year-over-year to $224 million, driven by higher volumes and acquisitions [18] - Consumer Products segment net sales were $155 million, up 11% year-over-year, with adjusted EBITDA increasing to $35 million from $29 million [20] - The Building Products adjusted EBITDA margin was 26.3%, while the Consumer Products margin expanded to 22.9% from 20.5% [20] Market Data and Key Metrics Changes - The demand in end markets is steady, with expectations for growth as market conditions improve [10][11] - The company is not over-indexed to any specific vertical or industry, allowing for diversified growth opportunities [30] Company Strategy and Development Direction - The company is leveraging the Worthington Business System (WBS) focusing on innovation, transformation, and M&A to maximize growth [6][7] - Recent acquisitions, such as LSI, are expected to enhance the company's position in engineered building systems [9][73] - The company is investing in automation and AI to improve operational efficiencies and drive growth [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong demand in end markets and the effectiveness of their strategies [10][11] - The company is well-positioned to continue growing and creating value for stakeholders as market conditions improve [11] Other Important Information - The company returned $9 million to shareholders through dividends and share repurchases [14] - The modernization project is on track and expected to be completed by mid-fiscal year 2027 [16] Q&A Session Summary Question: Can you talk about volume versus price in organic revenue growth? - Management indicated that both volume and pricing contributed to organic growth, with Building Products up 16% and Consumer Products up 11% [25][26] Question: Can you provide color on organic growth expectations for Q4? - Management refrained from providing specific guidance but indicated that trends are expected to continue [30] Question: How is the pipeline forming for the tank business in data centers? - Management noted significant traction in the ASME cooling tanks business, expecting growth to continue for several years [35][36] Question: How is the LSI acquisition performing? - The integration is on track, and early results are meeting expectations, with strong potential for future growth [73][74] Question: What is the impact of tariffs on market share? - Management believes they are net beneficiaries of tariffs, having gained market share in multiple value streams [79][80]

Financial Data and Key Metrics Changes - Net sales for Q4 2025 were $7.5 million, down from $9.7 million in the same quarter last year, primarily due to lower volumes with recurring national customers and higher promotional allowances [12] - Gross profit for Q4 2025 was $1.5 million, compared to $2.9 million in the year-ago quarter, with gross margin decreasing to 20% from 30% [13] - Delivery and handling costs were reduced by 35% to $1.1 million in Q4 2025, compared to $1.7 million in the year-ago quarter [13] - Net loss improved to $3.8 million or -$0.44 per share, compared to $4.1 million or -$1.33 per share in the year-ago quarter [14] - EBITDA was -$3.6 million in Q4 2025, compared to -$3.1 million in the year-ago quarter [14] Business Line Data and Key Metrics Changes - The company saw sequential improvements in net sales, gross margin, and net loss, indicating early signs of operational improvements [4] - Sales growth was driven by increased sales velocity and seasonal product launches, particularly in channels like natural, specialty, grocery, mass, and e-commerce [5] Market Data and Key Metrics Changes - The company is expanding its presence in underpenetrated channels, particularly food service and convenience, which represent significant growth opportunities [6] - The core product, Reed's Ginger Ale, remains the number one premium ginger ale in the U.S., with dollar sales increasing by 13.7% over the past 52 weeks [7] Company Strategy and Development Direction - The company is focused on rebuilding and expanding distribution relationships, enhancing supply chain efficiency, and optimizing manufacturing processes to support sustainable growth [5] - A new product line, Reed's Ginger Ale Cranberry and Blackberry, is set to launch in Q2 2026, along with non-alcoholic mixers in Q3 2026 [7] - The company is also enhancing its digital presence through partnerships and advertising to reach over four million targeted shoppers monthly [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sequential improvement in key financial metrics and emphasized the focus on executing operational priorities to drive profitable growth [16] - The company aims to improve overall operating performance and achieve consistent, profitable growth through disciplined trade spending and operational efficiency gains [11] Other Important Information - The company completed a $10 million public offering and uplisted to the NYSE American, enhancing its financial flexibility and visibility within the investment community [10][11] - Delivery and handling expenses declined significantly, reinforcing the effectiveness of logistics and supply chain initiatives [9] Q&A Session Summary Question: How best is it to think about the cadence of distribution gains in 2026? - Management acknowledged the need for improvement in placements and emphasized a focus on velocities and increasing shelf placement in 2026 [18] Question: How should we think about the path to profitability and margin initiatives? - Management indicated that they are reducing expenses while driving growth, expecting significant improvements in the financial outlook by Q4 of the current year [19] Question: Any additional detail on the timing of the Smarter Soda launch? - Management confirmed that they are working on improving flavors and execution for the Smarter Soda launch while also focusing on the new mixer line [22]