Financial Data and Key Metrics Changes - Fourth quarter ARR reached $1.853 billion, up 11% year-over-year, driven by $70 million of net new ARR and revenue of $481 million, up 14% year-over-year [7][28] - Full year GAAP profitability achieved for the first time in the company's history, with GAAP operating income of $57 million and fourth quarter GAAP net income of $104 million [32][33] - Non-GAAP operating income for the fourth quarter was $150 million, representing a 31% margin, and full year non-GAAP operating income was $370 million, a 23% margin [8][32] Business Line Data and Key Metrics Changes - AI product ARR, which includes Agentic, IDP, and Maestro, reached nearly $200 million this quarter, with strong growth fueled by Agentic [15] - The number of customers above $100K in ARR who have bought AI products grew 25% year-over-year, and they spend nearly three times as much as those who have not [15] - Customers with more than $1 million in ARR showed a 90% usage rate of AI products, indicating strong integration of AI into the customer base [29] Market Data and Key Metrics Changes - Over $1.2 billion in cloud ARR, which includes both hybrid and SaaS, up over 20% year-over-year [29] - Dollar-based gross retention was 97%, and dollar-based net retention rate remained at 107% [31] - Remaining performance obligations increased to $1.475 billion, up 19% [31] Company Strategy and Development Direction - The company is focused on accelerating growth across its customer base, expanding penetration inside its install base, and scaling AI adoption on top of deterministic automation [25] - A unified platform combining deterministic automation, agentic automation, and enterprise-grade orchestration is emphasized as a competitive advantage [9][10] - The company plans to leverage coding agents to accelerate automation development, aiming to reduce the time required to build production-grade automations [22][90] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growing demand for automation and AI, noting that AI initiatives are driving renewed interest in automation [82] - The company anticipates crossing $2 billion in ARR in fiscal year 2027, reflecting confidence in its growth trajectory [23] - Management characterized the operating environment as variable, with pockets of strength in sectors like financial services and healthcare, while also acknowledging some uncertainties [67] Other Important Information - The company repurchased approximately $337 million worth of shares in the fiscal year, completing a $1 billion stock repurchase program [33][34] - The company expects to be meaningfully GAAP profitable in fiscal 2027 and is committed to expanding GAAP profitability over time [27][34] Q&A Session Summary Question: Net new ARR expansion potential and FX contribution assumptions - Management indicated that there is no significant FX contribution impacting net new ARR expansion, with a minimal impact from currency fluctuations [44][46] Question: AI product composition and momentum - Management noted strong momentum in AI products but did not provide specific ratios between different components, emphasizing their complementary nature [51][52] Question: Federal business outlook - Management expressed bullishness about the federal sector, noting strong traction and increased appetite for long-term projects, particularly in the Department of Defense [58][59] Question: Budget trends in automation and AI - Management highlighted a strong position in the market due to their process orchestration technologies and the integration of deterministic and agentic automation [62][64] Question: Impact of SaaS shift on growth - Management clarified that the SaaS shift is expected to create a 1% headwind to total revenue growth, but they do not anticipate any delayed impacts from agentic solutions [78]

UiPath (NYSE:PATH) Q4 2026 Earnings call March 11, 2026 05:00 PM ET Company ParticipantsAllise Furlani - VP of Investor RelationsArsenije Matovic - VP of Equity ResearchAshim Gupta - COO and CFODaniel Dines - Co-Founder and CEOJames Kisner - Managing DirectorKoji Ikeda - Director of Enterprise Software Equity ResearchConference Call ParticipantsBryan Bergin - Managing Director and Senior Equity Research AnalystChirag Ved - VP and Equity Research AnalystKingsley Crane - Managing Director and Senior Infrastru ...

Financial Data and Key Metrics Changes - In 2025, net sales totaled $1 billion, with a gross margin expansion of 380 basis points to 55.9% and a reduction in SG&A by over $100 million, resulting in a positive adjusted operating income of $11 million, an improvement of $48 million year-over-year [5][25][30] - Q4 net sales were $274 million, reflecting a decline of 20%, impacted by store closures [25] - Full year gross margin for 2025 was 55.9%, representing 380 basis points of expansion versus 2024, despite challenges from minimum royalty guarantee shortfalls [26] Business Line Data and Key Metrics Changes - The wholesale traditional watch business grew by 2% globally for the full year in 2025, driven by core brands like Michael Kors, Emporio Armani Exchange, and Diesel [7] - The company successfully established a full price selling model, improving profitability in both wholesale and direct-to-consumer channels [6] Market Data and Key Metrics Changes - The company is focusing on priority markets, particularly the U.S. and India, where it has seen strong growth and momentum [19] - India is highlighted as a significant strategic market, being the fastest growing large economy, with strong category leadership and growth across all channels [19] Company Strategy and Development Direction - The company is evolving its strategic pillars to focus on returning to profitable growth, optimizing the operating model, and building shareholder value [9][22] - Plans for 2026 include fueling innovation through design and technology, reviving key product lines, and enhancing consumer engagement through culturally relevant collaborations [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, noting that the company is well-positioned to leverage its foundational assets and is experiencing strong momentum across markets [8][9] - The company anticipates a return to top-line growth in the fourth quarter of 2026, supported by a robust pipeline of innovation and improved consumer engagement [23][35] Other Important Information - The company ended 2025 with $96 million in cash and cash equivalents and a significant reduction in inventory levels, down 15% from the previous year [31] - Management acknowledged the current geopolitical climate and its potential impact on operations, particularly in the Middle East [24] Q&A Session Summary Question: What were the drivers of gross margin in the quarter, and what gives you confidence the improvements are sustainable? - Management highlighted the shift to a full price selling model and improved relationships with partners as key drivers of gross margin improvements, with confidence in sustainability due to renegotiated minimum guarantees for 2026 [38][40] Question: What gives you confidence you'll be able to achieve a return to growth in the fourth quarter of 2026? - Management emphasized the transformation over the last 18 months, strong consumer relationships, and a robust product pipeline as factors supporting confidence in achieving growth [41][42] Question: What more can you do to improve the cost structure? - Management indicated ongoing evaluations for continuous improvement, focusing on operational efficiencies and leveraging technology for better performance [43][45] Question: Can you elaborate on deepening consumer engagement? - Management noted that while marketing spend may decrease, the focus will be on optimizing existing marketing efforts and enhancing product storytelling to drive engagement [50][54] Question: How do you view the sequencing of your strategic pillars? - Management clarified that the pillars are interdependent, with a flywheel effect expected as improvements in one area support growth in others [55][57] Question: How has the conversation with wholesale partners evolved? - Management reported positive feedback from wholesale partners, noting improved relationships and increased interest in product offerings due to the company's consistent performance [61][62]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 increased by 22% year-over-year to $110.1 million, exceeding the high end of guidance by 5% [36] - Contribution ex-TAC for Q4 totaled $64.6 million, up 19% year-over-year, also above guidance [36] - For the full year 2025, revenue totaled $344.2 million, increasing 19% year-over-year, while adjusted EBITDA increased by 29% to $57.4 million [35][36] - Adjusted EBITDA margin expanded nearly 250 basis points year-over-year to reach 28% [36] Business Line Data and Key Metrics Changes - CTV spend on the platform reached a record high, accounting for 46% of total advertiser spend in Q4 [38] - Contribution ex-TAC from CTV increased by more than 40%, significantly outpacing broader industry growth [12] - Revenue attached to IRIS_ID utilization increased by 90% sequentially in Q4 [15] Market Data and Key Metrics Changes - Customer-directed purchasing across emerging digital channels represented approximately 54% of total platform spend for the year, up from 51% in 2024 [39] - Total advertising dollars in the U.S. are expected to reach nearly $450 billion in 2026, with 70% allocated to performance budgets [24] Company Strategy and Development Direction - The company aims to capitalize on the migration of advertising dollars from linear television to CTV, positioning itself as a leader in this space [11] - The launch of Outcomes, an AI decisioning solution, is designed to compete for performance budgets against larger platforms [21] - The company is expanding its enterprise sales team to secure new flagship accounts and drive organic growth [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a healthy ad environment and anticipated significant ramp-up in ad spend from new customers like Molson Coors and WHOOP [9][43] - The company expects contribution ex-TAC growth to continue outpacing the broader U.S. programmatic market, projected to grow approximately 13% [44] - Management highlighted the importance of proprietary data and AI capabilities in driving competitive advantage and sustainable growth [66] Other Important Information - The company ended Q4 with $191.2 million in cash and cash equivalents and no debt, indicating a strong financial position [42] - The share repurchase program has returned $59.6 million to shareholders since its launch [42] Q&A Session Summary Question: What drives the upward swing in growth expectations for 2026? - Management noted limited contribution from new customers in Q1, with expectations for significant ramp-up in Q2 as they begin to spend more [47] Question: How is the late-stage deal pipeline progressing? - The company has invested in building out its enterprise sales team, which is expected to replenish the sales pipeline and improve win rates against larger competitors [52] Question: Can a smaller company sustain growth against larger competitors? - Management believes proprietary data and performance capabilities provide a sustainable competitive advantage, allowing the company to outperform larger platforms [66] Question: What is the future outlook for IRIS_ID adoption? - Management expects continued growth in IRIS_ID utilization, projecting reasonable penetration to reach 70% this year [62]

Financial Data and Key Metrics Changes - The ending ARR for Q4 was $13.7 million, down from $20 million in Q4 last year, primarily due to the loss of two large customer contracts [26] - Total revenue for Q4 was $8.9 million, an increase of $200,000 or 3% from $8.7 million in Q4 last year [29] - Subscription revenue accounted for 60% of total revenue for the quarter, increasing 6% from $5 million to $5.3 million [29] - Non-GAAP net income per diluted share for the quarter was $0.05 compared to a non-GAAP net loss of $0.22 in Q4 last year [33] Business Line Data and Key Metrics Changes - ARR from the anti-counterfeiting solution continues to grow, driven by customer upsells and new customer wins [16] - The company secured an upsell with an existing customer to expand their use of the anti-counterfeiting solution to authenticate tax stamps [17] - The Secure Gift Card solution achieved its first commercial order representing over $500,000 in ARR [12] Market Data and Key Metrics Changes - The U.S. serviceable addressable market for the Secure Gift Card solution is estimated at 3 billion to 5 billion cards annually, with a global SAM of 7.5 billion to 17 billion cards [9] - The company expects significant adoption of the Secure Gift Card solution by holiday 2026, with initial rollouts planned with major retailers [10][12] Company Strategy and Development Direction - The company is focused on building a trust layer for the modern world, addressing the increasing need for trust and authenticity in the wake of AI advancements [7][38] - The strategic focus areas include retail loss prevention, product authentication, and digital trust and integrity, with a commitment to selectively engage in other opportunities that represent low distraction revenue [6][39] - The company aims to capitalize on the convergence of key trends driving demand for its solutions, positioning itself to benefit from the advancements in AI [39] Management's Comments on Operating Environment and Future Outlook - Management highlighted the creation of a trust vacuum due to the acceleration of AI models, emphasizing the importance of trust as a currency [7][38] - The company expects to generate significant ARR growth in 2026, with the Secure Gift Card solution being the largest driver [26][41] - Management expressed confidence in the company's ability to address large problems outside current focus areas when market conditions are favorable [40] Other Important Information - The company ended the year with just under $13 million in cash and investments and no debt [6] - Positive free cash flow of $700,000 was generated in Q4, an improvement of $5.1 million compared to negative free cash flow of $4.4 million in Q4 last year [34] Q&A Session Summary Question: Technical difficulties during the call - The company experienced technical issues with the conference call service, preventing a Q&A session from occurring [42][43]

Financial Data and Key Metrics Changes - In 2025, net sales totaled $1 billion, with a gross margin expansion of 380 basis points to 55.9% and a reduction in SG&A by over $100 million, resulting in a positive adjusted operating income of $11 million, an improvement of $48 million year-over-year [5][25][30] - Q4 net sales were $274 million, reflecting a decline of 20%, including a 4-point impact from store closures [25] - Q4 gross margin was 57.4%, up 350 basis points from the previous year, indicating ongoing strength in product margins and a focus on full-price selling [26] Business Line Data and Key Metrics Changes - The traditional watch business saw a global growth of 2% in core brands for the full year 2025, driven by strategic investments in point of sale and a focus on specialty watch retail [7] - The company successfully established a full-price selling model, improving profitability in both wholesale and direct-to-consumer channels [6] Market Data and Key Metrics Changes - The company is focusing on priority markets, particularly the U.S. and India, where it has seen strong growth and momentum [19] - India is highlighted as a significant strategic market, being the fastest-growing large economy, with strong category leadership and secular tailwinds [19] Company Strategy and Development Direction - The company is evolving its strategic pillars to focus on returning to profitable growth, optimizing the operating model, and building shareholder value [9][22] - Plans for 2026 include fueling innovation through design and technology, reviving key product collections, and enhancing consumer engagement through culturally relevant collaborations [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround plan, noting that the company is well-positioned to leverage its foundational assets and is experiencing strong momentum across markets and demographics [8][9] - The company anticipates a return to top-line growth in the fourth quarter of 2026, supported by a robust pipeline of innovation and improved consumer engagement [32][35] Other Important Information - The company ended 2025 with $96 million in cash and cash equivalents and a significant reduction in inventory levels, down 15% from the previous year [31] - Management acknowledged the current geopolitical climate and its potential impact on operations, particularly in the Middle East [24] Q&A Session Summary Question: What were the drivers of gross margin in the quarter, and what gives confidence the improvements are sustainable? - Management highlighted the shift to a full-price selling model and improved relationships with partners as key drivers of gross margin improvements [38][40] Question: What gives confidence in achieving a return to growth in the fourth quarter of 2026? - Management emphasized the transformation over the last 18 months and the excitement around upcoming innovations as factors supporting confidence in growth [41][42] Question: What more can be done to improve the cost structure? - Management indicated a focus on continuous improvement and evaluating operational efficiencies, including technology simplification and automation [43][45] Question: How is consumer engagement being measured and improved? - Management noted that while marketing spend may decrease, the focus will be on optimizing existing marketing efforts and enhancing product storytelling [50][54] Question: How have relationships with wholesale partners evolved? - Management reported improved relationships with wholesale partners, who are now more engaged and supportive due to the company's consistent performance and strategic changes [61][62]

Financial Data and Key Metrics Changes - Core net income increased by 52% to $111 million, achieving a record pre-tax ROE of 26% [5][7] - Book value grew by 21% and net interest margin (NIM) remained stable at 3.6% [6][7] - Total loan production for 2025 reached $2.7 billion, a 47.5% year-over-year increase [11][12] Business Line Data and Key Metrics Changes - Originations volume increased by 49% to a record $2.7 billion, with 9 new securitizations totaling $2.6 billion [5][6] - The loan portfolio grew by 28% year-over-year, reaching $6.5 billion [11][12] - Non-performing loans (NPLs) decreased to 8.5% from 10.7% at the end of 2024 [14] Market Data and Key Metrics Changes - The fixed income markets showed healthy activity, with oversubscribed deals and tight spreads [4] - The securitization market was described as robust, with a deep bench of investors supporting the company [22] Company Strategy and Development Direction - The company aims to grow book value and maximize shareholder returns, supported by a strong liquidity position [6][19] - A transformative partnership was established by selling $129 million of NPLs while retaining servicing rights, which is expected to drive future earnings [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing healthy real estate markets and a growing pipeline [4][22] - The company remains disciplined in its lending practices and does not foresee significant impacts from potential changes in interest rates [27][46] Other Important Information - The company issued its first rated unsecured debt offering for $500 million, enhancing its liquidity and reducing reliance on short-term financing [6][19] - Total liquidity at year-end was just under $117 million, including $92 million in cash [11][19] Q&A Session Summary Question: Inquiry about the impact of potential rate cuts on loan demand - Management indicated that while a rate drop could lower costs and make offerings more attractive, it is not expected to be a significant growth driver [27][28] Question: Update on competitive dynamics in lending markets - Management noted no significant changes in competition and mentioned a slight positive impact from disruptions in private credit markets [38] Question: Deployment of proceeds from the recent debt raise - Management confirmed full deployment of the $500 million proceeds, with a minimum cash reserve of $30-$50 million maintained for safety [44] Question: Comparison of spreads and returns in single-family versus small balance commercial segments - Management stated that commercial assets yield wider spreads compared to single-family loans, with a difference of approximately 125 basis points [48]

Financial Data and Key Metrics Changes - For the full year 2025, revenue increased by 40% to $71.7 million from $51.1 million in 2024, while adjusted free cash flow rose by 46% to $13.9 million from $9.5 million [4][18] - Q4 revenue grew by 36% year-over-year to $19.2 million from $14.1 million, and adjusted free cash flow climbed 33% to $4.3 million [5][17] - Gross margins improved to 60% in Q4 from 52% a year ago, and for the full year, gross margins were 57% [5][19] Business Line Data and Key Metrics Changes - Licensing revenue for Q4 was $9.8 million, an increase of $6.1 million from the previous year, while subscription revenue was $9.1 million [18] - For the full year, subscription revenue was $37 million, and licensing revenue was $33.2 million, driven by growth in AI training fulfillments [19] Market Data and Key Metrics Changes - The company anticipates that annual licensing revenue will exceed overall subscription revenue in 2026, with expected growth in subscription revenue by low to mid-single digits [5][24] - The company expects its overall roster of partners to more than double in 2026 and potentially increase 5-6 times in 2027 [9] Company Strategy and Development Direction - CuriosityStream's strategy focuses on leveraging its large differentiated content library, which includes nearly 3 million hours of premium factual content, to drive licensing revenue [8][14] - The company aims to maintain a disciplined approach to pricing and avoid treating its library as a commodity, emphasizing the value of rights-cleared, structured content [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth in both revenue and cash flow in 2026, with a focus on executing partnerships and expanding licensing opportunities [15][48] - The company highlighted the importance of maintaining quality and managing legal developments as part of its execution challenges [13][14] Other Important Information - The company ended the year with total cash and securities of $27.3 million and no outstanding debt, providing substantial flexibility [22] - CuriosityStream plans to resume share repurchase activity and has increased its share repurchase authorization to $6 million [23] Q&A Session Summary Question: Update on LLM licensors renewing their deals - Management confirmed that virtually all licensors have renewed or will renew their agreements, with repeat business being observed [28] Question: Change in pace of adding other companies' libraries - Management stated they are constantly in acquisition mode and have built an extraordinary library, receiving positive feedback from major companies [29] Question: Use cases of LLMs utilizing licensed information - Management discussed the evolution of AI applications, including video summarization and physical AI, highlighting the diverse use cases for their content [31][33] Question: Goals for the base streaming business and licensing opportunity - Management expressed confidence in low- to mid-single-digit growth for the subscription business and anticipated licensing revenue to eclipse subscription revenue [34][35] Question: Expected number of new platforms and countries in FY 2026 - Management expects to launch 12-20 new platforms in FY 2026, with confidence in subscriber growth through partnerships [39] Question: M&A opportunities - Management indicated they will consider M&A opportunities that are in the best interest of shareholders, especially in a ripe market environment [42] Question: Commentary on the market for content to license for AI training - Management highlighted their partnership with Veritone and the unique advantages of their diverse content library for AI training [43][45] Question: Timing of price increase implementation and churn expectations - Management noted that the price increase will take a year to fully implement, with expectations of a gradual rollout [46]

Financial Data and Key Metrics Changes - In 2025, the company achieved full-year revenue of $486.8 million, which was broadly flat year-over-year compared to $490.4 million in 2024 [5][18] - Adjusted EBITDA for 2025 reached $87.3 million, a 10% increase from $78.8 million in 2024, exceeding guidance of $85 million [5][19] - The adjusted EBITDA margin improved to 17.9% in 2025, up 180 basis points from the previous year [19] - Q4 2025 revenue was $140.7 million, representing a 3% year-over-year increase, with adjusted EBITDA of $41.6 million, a 56% increase year-over-year [19][20] Business Line Data and Key Metrics Changes - The company streamlined its portfolio of brand demand products, launching the Informa TechTarget Portal, which provided a 40% increase in audience reach year-over-year [7] - Demand products saw strong growth, particularly as the company consolidated and rationalized its demand portfolio [29] Market Data and Key Metrics Changes - The company operates in a $20 billion addressable market, holding only a 2.5% market share, indicating substantial growth opportunities [5] - The Asia Pacific region faced challenges, particularly in the technology sector, affecting smaller customer segments [30] Company Strategy and Development Direction - The company aims to return to top-line revenue growth in 2026, with adjusted EBITDA expected to expand to $95 million-$100 million [15][24] - The strategy includes leveraging AI technology across four key areas: conversational AI interfaces, personalized audience experiences, enhancing go-to-market programs, and automating operations [10][12][13] - The focus is on building relationships with larger customers and addressing their scale needs through integrated solutions [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow revenues in 2026, supported by operational discipline and strategic execution [18][24] - The company noted that the market environment is expected to remain similar to 2025, with a focus on cost discipline and annualization of synergies [23][24] Other Important Information - The company received 48 awards for the quality of its journalism in 2025, highlighting its commitment to original and trusted content [8] - The company reported a net debt of approximately $66 million at year-end 2025, reflecting strong cash-generating characteristics [22][23] Q&A Session Summary Question: Congratulations on the fourth quarter results and overachieving versus the adjusted EBITDA for the year. Was the 10% growth in revenue from your largest customers a full year basis or a Q4 metric? - Answer: It was a full year basis on a combined company basis [26][27] Question: Are you stratifying the customer base differently now compared to the end of 2024? - Answer: Yes, the customer base is being stratified differently, focusing on a cohort of 30 portfolio customers [27][28] Question: What products resonated with the largest cohort of customers? - Answer: There was strong demand for demand products and content, as customers sought to establish a distinctive voice in the marketplace [29] Question: Given the total revenue on a pro forma combined basis declined 1%, what themes were recognized across the smaller customer base? - Answer: The Asia Pacific region faced challenges, particularly with smaller technology companies looking to export internationally [30][31] Question: Is it prudent to model a 2% growth starting point for 2026 based on the growth in the back half of 2025? - Answer: Yes, that modeling approach makes sense, and a slightly higher starting point could be considered [32][33] Question: What is driving the incremental adjusted EBITDA guidance for 2026? - Answer: The impact of synergies will be more pronounced throughout the full year, contributing to the expected increase in adjusted EBITDA [34][35]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $46.4 million, a decrease of 6.9% compared to the same quarter in 2024 [12] - Procedure revenue declined 13% to $31.8 million, while dietary supplement revenue grew 16% to $11.7 million [12][13] - Gross profit margin was 68.0%, down from 71.8%, primarily due to a $1.3 million charge related to a voluntary recall [14] - Adjusted EBITDA decreased to $11.7 million with an adjusted EBITDA margin of 25.2%, compared to $15.1 million and 30.3% in the previous year [16] Business Line Data and Key Metrics Changes - Procedure revenue was primarily impacted by a lower number of net new clinic additions and lower procedure volume [12] - Dietary supplement revenue growth was driven by the continued expansion of the e-commerce channel [13] - The company anticipates dietary supplement revenue to grow at a mid- to high-single-digit rate in 2026 [14] Market Data and Key Metrics Changes - The company ended 2025 with over 90 salespeople, up from approximately 60 at the time of the sales reorganization [8] - The number of new Biote certified practitioners is a leading indicator of future procedure growth, with training sessions at full capacity [8] Company Strategy and Development Direction - The company aims to prioritize new clinic growth, maximize value from existing clinics, and strengthen accountability and discipline [6][9] - In 2026, the company plans to expand its sales personnel from over 90 to approximately 120 and invest in technology to enhance the practitioner experience [10][11] - The company is focused on operational excellence and improving internal processes to drive sustainable growth [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about re-accelerating procedure revenue growth and scaling the business more efficiently [9] - The company expects procedure revenue to decrease at a mid- to high-single-digit percentage rate in the first half of 2026, with a return to growth anticipated in the second half [17] - Planned investments in 2026 are expected to impact adjusted EBITDA but are seen as essential for long-term growth [11] Other Important Information - Cash flow from operations for 2025 was $35.2 million, with cash and cash equivalents at $24.1 million as of December 31, 2025 [16] Q&A Session Summary Question: Impact of FDA's removal of black box warnings for certain HRTs - Management views the removal as a positive tailwind, recognizing hormone optimization as a beneficial option for patients [21] Question: Details on the voluntary recall and FDA feedback - The company is working closely with the FDA and has received positive feedback regarding the recall process [22] Question: Procedure revenue growth in the first half of 2026 - The decline is attributed to higher attrition rates and lower volumes, with expectations for growth in the second half of 2026 [25][26] Question: Anticipated procedure revenue decline in Q1 versus Q4 - Management expects stabilization in attrition and monitoring of new customer growth, with a focus on the impact of the recall [30][33] Question: Clarification on EBITDA guidance - The decrease in EBITDA is primarily due to investments in sales personnel and technology to drive future growth [34][37] Question: Areas of focus for improving the tech platform - The company aims to enhance the practitioner experience through system improvements, both internally and with outside help [43][46] Question: Quarterly sales decline expectations for Q1 - Management anticipates a similar decline to Q4, with a focus on stabilizing attrition and monitoring recall impacts [48][49] Question: Current pellet supply through Asteria - The company is currently at about 50/50 on overall pellets being used from Asteria versus other providers, with plans to increase Asteria's share [52][56]