Financial Data and Key Metrics Changes - In Q4 2025, REPAY achieved revenue of $78.6 million and gross profit of $58.3 million, with normalized revenue growth of 10% and gross profit growth of 9% year-over-year [15][16] - Adjusted EBITDA was $32.4 million, representing approximately 41% of Adjusted EBITDA margins, while free cash flow was $13.8 million, resulting in a 43% free cash flow conversion [16][20] - The company reported a non-cash goodwill impairment charge of $138.9 million related to the consumer payments segment [16] Business Line Data and Key Metrics Changes - In the consumer payments segment, Q4 revenue increased by 8% and gross profit increased by 6% year-over-year [6][16] - The business payments segment saw normalized revenue increase of 41% and gross profit increase of 73% year-over-year in Q4 [8][16] - The supplier network in the business payments segment grew to 602,000 suppliers, an increase of over 65% year-over-year [8] Market Data and Key Metrics Changes - The company noted stable trends in the auto and personal loans markets, with no significant changes reported in healthcare or mortgage sectors [29][30] - The upcoming midterm elections are expected to positively impact revenue by $8 million to $10 million, contributing approximately 3 percentage points to reported growth year-over-year [22] Company Strategy and Development Direction - REPAY is focused on improving operations, go-to-market strategies, and overall organizational leadership to support growth in 2026 [5][19] - The company plans to allocate capital towards organic growth opportunities, strategic M&A, and partnerships to enhance long-term growth and cash flow [23][24] - Investments in AI and automation are prioritized to streamline processes and enhance client experiences [12][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit reported revenue growth in 2026, driven by existing client growth and new client ramp-up [19][21] - The company anticipates a lower year-over-year growth in Q1 2026 due to delayed client implementations but expects a return to strong double-digit normalized growth in the second half of the year [21] - Management highlighted the importance of political media contributions in the upcoming year, which are expected to provide a revenue boost [22] Other Important Information - REPAY has approximately $116 million in cash on the balance sheet and a pro forma total liquidity of approximately $219 million [17][18] - The company is committed to maintaining strong cash generation to support liquidity and financial flexibility while balancing capital deployment [26] Q&A Session Summary Question: Insights on major end markets like auto, personal loans, healthcare, and mortgage - Management noted stable trends in auto and personal loans, with no significant changes in healthcare or mortgage markets [29][30] Question: Impact of tax refunds on volumes and repayment activity - Management observed a seasonal uplift in payment volume related to tax refunds, indicating normal patterns [35] Question: Update on M&A pipeline and focus areas - Management confirmed a healthy pipeline for potential M&A opportunities in both consumer and business payments, with a focus on partnerships that complement existing business units [41] Question: Growth expectations for the business payments segment - Management indicated expectations for high teens growth in the business payments segment, influenced by the political year and upcoming midterm elections [55] Question: Consumer segment initiatives contributing to growth - Management stated that initiatives in the consumer segment are included in the 2026 forecast, with no outsized contributors expected [56]

Financial Data and Key Metrics Changes - The overall net operating income (NOI) for the fourth quarter of 2025 was $10.9 million, an increase from $7 million in the prior quarter [10] - Core Funds from Operations (FFO) was negative $5.9 million, compared to negative $7 million in the prior year [24] - The company reported a negative FFO of $7.1 million, or negative $4.49 per diluted share, an improvement from negative $8.7 million, or negative $23.21 per diluted share in the prior year [23] Business Line Data and Key Metrics Changes - Office segment NOI for Q4 2025 was $6.4 million, up from $5.2 million during Q4 2024, driven by increased occupancy and rental rates in properties located in Austin and Beverly Hills [19][20] - Hotel segment NOI for Q4 2025 was $2.1 million, consistent with the prior year [21] - Multifamily segment NOI decreased to a loss of $870,000 during Q4 2025, compared to income of $855,000 in the prior year, primarily due to unrealized losses on investments [21] Market Data and Key Metrics Changes - In Oakland, the vacancy rate declined to 8% from a high of 18% in 2001, with rent growth turning positive in 2025 after three years of declines [16] - The office segment occupancy rate reached 88.5% at the end of 2025, a 190 basis point increase from the third quarter and a 680 basis point improvement year-over-year [8][17] Company Strategy and Development Direction - The company is focusing on premier multifamily assets, strengthening its balance sheet, and improving liquidity [4] - The company completed the sale of its lending division for approximately $44.9 million, generating about $31.2 million in net cash proceeds [6][7] - The company plans to redeem approximately 2 million shares of Series A preferred stock, which is expected to improve annual FFO by approximately $16 million [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving cash flow in 2026, supported by rising net operating income across all segments [8] - The company anticipates lower interest expenses due to a potentially more favorable rate environment and plans to refinance the hotel following renovations [9] - Management noted that the company does not currently intend to initiate additional preferred stock redemptions but will evaluate requests as they arise [6] Other Important Information - The company has completed nine refinancings and fully retired its $169 million recourse credit facility [12] - The company is working on the extension of two more assets expected to be completed in Q2 2026 [12] Q&A Session Summary Question: What are the expectations for future cash flow improvements? - Management indicated that they see opportunities to improve cash flow in 2026, supported by several key drivers across the portfolio [8] Question: How is the company addressing its preferred stock redemptions? - Management stated that they do not currently intend to initiate additional preferred stock redemptions but will evaluate requests as they come in [6] Question: What is the status of the hotel renovations? - Management confirmed that the renovations at the Sheraton Grand Sacramento have been substantially completed and are expected to positively impact profitability [18]

Financial Data and Key Metrics Changes - In Q4 2025, REPAY achieved revenue of $78.6 million, reflecting a 10% normalized year-over-year growth, while gross profit was $58.3 million, with a 9% growth on a normalized basis [13][14] - Adjusted EBITDA margins were approximately 41%, and free cash flow conversion was 43% [5][14] - Reported net income was impacted by a non-cash goodwill impairment charge of $138.9 million related to the consumer payments segment [14] Business Line Data and Key Metrics Changes - Consumer payments segment saw revenue increase of 8% and gross profit increase of 6% year-over-year [5][14] - Business payments segment experienced a significant increase, with normalized revenue up 41% and gross profit up 73% year-over-year [7][14] Market Data and Key Metrics Changes - The supplier network in the business payments segment grew to 602,000 suppliers, an increase of over 65% year-over-year [8] - The company added 14 software partners and integrations during 2025, exiting the year with over 294 total partners [9] Company Strategy and Development Direction - REPAY is focused on improving operations, go-to-market strategies, and overall organizational leadership to support growth in 2026 [4] - The company plans to allocate capital towards organic growth opportunities, strategic M&A, and partnerships to enhance long-term growth and cash flow [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a revenue target of $340 million to $346 million for 2026, representing 10%-12% reported revenue growth [17] - The company anticipates a strong midterm election cycle to positively impact revenue by $8 million-$10 million, contributing approximately 3 percentage points of reported growth year-over-year [19] Other Important Information - REPAY's pro forma total liquidity is approximately $219 million, which includes $140 million of undrawn revolver capacity [16] - The company is committed to implementing its capital allocation strategy to achieve double-digit reported growth and strong profitability in 2026 [22] Q&A Session Summary Question: Insights on major end markets like auto, personal loans, healthcare, and mortgage - Management noted stable trends in auto and personal loans, with no significant changes observed in healthcare or mortgage markets [25][26] Question: Impact of tax refunds on volumes and repayment activity - Management indicated a seasonal uplift in payment volume related to tax refunds, consistent with previous years [31] Question: Contribution of float income to growth and margins - Float income from customer deposits in the B2B business played a significant role in Q4 results, with stable contributions expected moving forward [32][33] Question: Update on M&A pipeline and focus on consumer vs. business payments - Management confirmed a healthy pipeline for potential M&A opportunities in both consumer and business payments, focusing on selective investments [37] Question: Growth expectations for the business payment segment - Management anticipates high teens growth for the business payments segment, influenced by the political year and expected revenue contributions from political media [49][50]

Financial Data and Key Metrics Changes - Total net revenue for Q2 declined approximately 5% year-over-year, primarily due to unfavorable weather conditions impacting visitation and ancillary spending [15][17] - Resort Reported EBITDA decreased approximately 8% compared to the prior year, with Rockies snowfall down 43% year-over-year [15][17] - Skier visitation declined approximately 12% season-to-date, with lift revenue down approximately 4% [16][17] Business Line Data and Key Metrics Changes - Total Q2 lift revenue declined approximately 3%, despite visitation being down 13%, reflecting stability from pass sales which were up approximately 3% [15][16] - Ancillary revenue trends improved compared to January metrics but remained down versus the prior year due to lower visitation [16] Market Data and Key Metrics Changes - Conditions in the Rockies were the most challenging, with snowfall at historic lows, while conditions in the East were strong, providing a partial offset [15][16] - The company noted that geographic diversification has historically provided support, although less evident this year due to severe conditions in the Rockies [7][15] Company Strategy and Development Direction - The company is focused on optimizing visitation through enhanced marketing initiatives and new products, including a new pricing strategy for young adults [8][9] - A commitment to geographic diversification and advanced commitment strategies has been emphasized to mitigate regional weather impacts [6][7] - The company plans to continue investing in technology and guest-facing improvements to enhance the overall experience [13][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unprecedented weather challenges and their impact on performance, but expressed confidence in the resilience of the business model [5][12] - The updated fiscal 2026 guidance reflects reduced expectations for net income and Resort Reported EBITDA due to ongoing weather conditions [17][18] - Management remains optimistic about the long-term value creation potential despite the current challenges [22][23] Other Important Information - The company has a strong balance sheet with approximately $1.1 billion in liquidity and a net leverage of 3.1x trailing 12 months EBITDA [19] - Capital expenditures for fiscal 2026 are reaffirmed at $215 million-$220 million, with a focus on technology investments [21] Q&A Session Summary Question: Impact of weather on next season's renewals - Management noted that historical patterns suggest that customers tend to view poor weather years as anomalies and remain engaged with the sport [26][27] Question: Flow-through assumptions regarding revenue and EBITDA - Management explained that the high flow-through is due to fixed costs and the need to maintain guest experience despite lower visitation [30] Question: Marketing efforts and social presence feedback - Management highlighted positive results from enhanced marketing strategies, particularly in social media, which have driven pass sales [34][35] Question: Future capital expenditures for snowmaking - Management confirmed a long-term commitment to upgrading snowmaking systems but noted that decisions for capital investments are made based on prior season results [45][46] Question: Proactive actions to accelerate visitation - Management reported positive traction from new ticket initiatives and pricing strategies, indicating potential for future growth despite current weather challenges [50][51] Question: Pricing strategy for young adults - Management discussed the rationale behind the 20% discount for young adults, emphasizing the importance of engaging this demographic for long-term growth [90][91]

Financial Data and Key Metrics Changes - Total net revenue declined approximately 5% in Q2 2026 compared to the prior year, primarily due to unfavorable weather conditions impacting visitation and ancillary spending [13][14] - Resort Reported EBITDA decreased approximately 8% year-over-year, with Rockies snowfall down 43% [13][15] - Skier visitation declined approximately 12% season-to-date, with lift revenue down approximately 4% [15][16] Business Line Data and Key Metrics Changes - Lift revenue declined approximately 3% in Q2 despite visitation being down 13%, reflecting stability from pass sales which were up approximately 3% [14][15] - Ancillary revenue trends improved compared to January metrics but remained down versus the prior year due to lower visitation [15] Market Data and Key Metrics Changes - Conditions in the Rockies were the most challenging on record, with snowfall and snowpack at historic lows, impacting overall performance [4][5] - Conditions in Whistler and Tahoe were variable, while the East experienced strong conditions, providing a partial offset to the Rockies' performance [13] Company Strategy and Development Direction - The company is focusing on geographic diversification to mitigate regional weather impacts, which has provided some support despite the severity of current conditions [6] - New pricing strategies were introduced for skiers and riders ages 13 to 30, offering a 20% discount to attract younger, price-sensitive customers [7][8] - The company is committed to enhancing marketing initiatives and product offerings to optimize visitation and drive revenue growth [6][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unprecedented weather challenges and their impact on performance, but emphasized the resilience of the business model and the importance of the advanced commitment strategy [11][20] - The company expects to reduce fiscal 2026 net income guidance to a range of $144 million to $190 million, and Resort Reported EBITDA to $745 million to $775 million due to ongoing weather challenges [16][17] - Management remains confident in the strength of cash flow generation and the stability of the business model despite the difficult operating environment [18][21] Other Important Information - The company retired $525 million of convertible debt and amended its credit agreement to extend the maturity date to 2031 [18][19] - The quarterly dividend was maintained at $2.22 per share, with a focus on reinvestment and capital allocation flexibility [19][20] Q&A Session Summary Question: How will this season's weather impact renewals for next year? - Management believes that while weather conditions may affect immediate renewals, historical patterns show that customers remain engaged with the sport despite challenging seasons [25][26] Question: Can you explain the high flow-through assumption in your model? - Management indicated that the high flow-through is due to fixed costs and the need to maintain high guest experience levels despite revenue impacts from weather [28][29] Question: What feedback have you received on your marketing efforts? - Management noted positive results from social media and influencer campaigns, which have driven pass sales and engagement [34][35] Question: Will there be significant CapEx for snowmaking after this season? - Management confirmed ongoing investments in snowmaking as part of their long-term strategy, but specific plans for post-season investments are not yet finalized [44][45] Question: How do you view the impact of the young adult discount program? - Management sees the program as a way to engage younger customers and believes it will lead to increased participation in the sport [66][68] Question: What factors are driving variability in your guidance? - Management highlighted that the current low snowpack creates greater uncertainty for the remainder of the season, impacting guidance variability [69][70]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved 10% revenue growth and 9% gross profit growth on a normalized year-over-year basis, excluding political media contributions from 2024 [5][14] - Adjusted EBITDA margins were 41%, and free cash flow conversion was 43% [5][15] - Q4 revenue was $78.6 million, and gross profit was $58.3 million, with gross profit margins at approximately 74.2% [13][14] Business Line Data and Key Metrics Changes - In the consumer payment segment, Q4 revenue increased by 8% and gross profit increased by 6% year-over-year [5][14] - The business payments segment saw normalized revenue increase by 41% and gross profit increase by 73% year-over-year [7][14] - The supplier network in the business payments segment grew to 602,000 suppliers, a 65% increase year-over-year [8] Market Data and Key Metrics Changes - The company noted stable trends in the auto and personal loans markets, with no significant changes reported in healthcare or mortgage sectors [26][27] - The political media contributions are expected to positively impact revenue by $8 million to $10 million in 2026, contributing approximately 3 percentage points to reported growth year-over-year [20] Company Strategy and Development Direction - The company is focused on improving operations, go-to-market strategies, and overall organizational leadership to support growth in 2026 [4][10] - Strategic changes in 2025 included executive changes, process streamlining, and investments in automation and AI to enhance operational efficiency [10][11] - The company plans to allocate capital towards organic growth opportunities, strategic M&A, and partnerships to boost long-term growth [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit reported revenue growth in 2026, driven by existing client growth and new client ramp-up [18][22] - The first quarter of 2026 is expected to show lower year-over-year growth due to delayed client implementations, with a return to strong double-digit normalized growth anticipated in the second half of the year [20][22] - The company is positioned to leverage AI capabilities to enhance productivity and streamline client onboarding processes [11][12] Other Important Information - The company ended 2025 with approximately $116 million in cash and a pro forma total liquidity of about $219 million [16][17] - The company has $23 million remaining under its existing share repurchase program for 2026 [21] Q&A Session Summary Question: Insights on major end markets like auto, personal loans, healthcare, and mortgage - Management noted stable trends in auto and personal loans, with no significant changes in healthcare or mortgage markets [26][27] Question: Any upcoming customer renewals in 2026 - Management indicated no major renewals outside of standard auto-renewals that are already embedded in guidance [28] Question: Impact of tax refunds on volumes and repayment activity - Management observed a seasonal uplift in payment volume during tax refund season, consistent with previous years [32][33] Question: Contribution of float income to growth and margins - Float income from customer deposits in the B2B business contributed positively to fourth-quarter results, with stable expectations for 2026 [34][35] Question: Update on M&A pipeline and focus areas - Management confirmed a healthy M&A pipeline with opportunities in both consumer and business payments, focusing on partnerships that complement existing business units [39] Question: Growth expectations for the business payment segment - Management anticipates high teens growth for the business payments segment, influenced by the political year and expected contributions from political media [52][53]

Financial Data and Key Metrics Changes - The company's overall net operating income (NOI) for Q4 2025 was $10.9 million, an increase from $7 million in the prior quarter [10] - Core Funds from Operations (FFO) was negative $5.9 million, compared to negative $7 million in the prior year [24] - The overall FFO was negative $7.1 million, or negative $4.49 per diluted share, an improvement from negative $8.7 million, or negative $23.21 per diluted share in the prior year [23][24] Business Line Data and Key Metrics Changes - Office segment NOI increased to $6.4 million in Q4 2025 from $5.2 million in Q4 2024, driven by higher occupancy and rental rates [20][21] - Hotel segment NOI for Q4 2025 was $2.1 million, consistent with the prior year [22] - Multifamily segment NOI decreased to a loss of $870,000 in Q4 2025, compared to income of $855,000 in the prior year, primarily due to unrealized losses on investments [22] Market Data and Key Metrics Changes - In Oakland, multifamily occupancy improved to 88.4% at year-end 2025, a 370 basis point increase from the end of Q3 2025 [17] - The office segment occupancy reached 88.5% at the end of 2025, a 190 basis point improvement from Q3 2025 and a 680 basis point improvement year-over-year [18] - Rent growth in downtown San Francisco was 7.6% in 2025, the highest in over 25 years, with the vacancy rate declining to its lowest levels in 15 years [16] Company Strategy and Development Direction - The company is focusing on premier multifamily assets, strengthening its balance sheet, and improving liquidity [4] - Actions taken since September 2024 include financing on nine assets and the sale of the lending division, which generated approximately $31.2 million in net cash proceeds [5][6] - The company plans to continue evaluating asset sales to enhance liquidity and optimize its balance sheet [7] Management's Comments on Operating Environment and Future Outlook - Management sees opportunities to improve cash flow in 2026, supported by improving net operating income across all segments [7] - The company anticipates lower interest expenses due to a potentially more favorable rate environment and plans to refinance the hotel following renovations [9] - Management expressed confidence in the strategic plan and the positive trends in operating performance across the portfolio [4] Other Important Information - The company is redeeming approximately 2 million shares of Series A preferred stock, which is expected to improve annual funds from operations by approximately $16 million [5] - The company has completed renovations at the Sheraton Grand Sacramento, which is expected to significantly impact profitability in 2026 [19] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - Q1 revenue was $9.3 billion, up 18% year-over-year, with record earnings per share of $0.65, exceeding the high end of the outlook [5][21] - Free cash flow for Q1 was $708 million, demonstrating strong cash management [20][29] - Gross margin improved to 36.6%, driven by pricing discipline and a favorable mix towards networking [21][25] Business Segment Data and Key Metrics Changes - Networking segment revenue increased 152% year-over-year, with normalized growth of 7%, representing nearly 30% of total revenues [9][22] - Cloud and AI segment revenue declined 3%, with operating margin dollars up 18%, driven by pricing and cost discipline [15][24] - Storage revenue was up 1%, with strong growth in Storage Alletra MP products, marking five consecutive quarters of double-digit growth [16][27] Market Data and Key Metrics Changes - Strong demand for networking products, particularly in wireless data center switching and routing, with orders growing mid-20% on a normalized basis [10][63] - AI systems backlog reached a record $5 billion, primarily from enterprise and sovereign orders [16][26] - The company expects higher average unit prices in server and storage products due to rising component costs, particularly in DRAM and NAND [8][25] Company Strategy and Development Direction - The integration of Juniper Networks is progressing well, with a focus on building a new networking market leader [6][14] - The company is prioritizing higher margin product orders in response to supply dynamics and inflationary pressures [8][33] - HPE aims to leverage its GreenLake platform to enhance customer adoption and drive subscription services [5][17] Management's Comments on Operating Environment and Future Outlook - Management noted significant commodity supply and cost headwinds, with expectations of elevated prices persisting into 2027 [6][31] - The company raised its fiscal 2026 EPS outlook to $2.30-$2.50, reflecting confidence in demand and operational execution [32][34] - Management emphasized strong customer demand despite rising prices, indicating no signs of demand destruction [41][54] Other Important Information - The company is on track to achieve its fiscal 2026 synergy targets from the Juniper integration [6][18] - HPEFS delivered record return on equity, highlighting the strategic advantage of financial services during high commodity cost cycles [17][27] - The company is actively managing its supply chain and pricing strategies to mitigate the impact of rising component costs [7][25] Q&A Session Summary Question: Will the current environment drive more customers to use HPE GreenLake? - Management confirmed that demand for GreenLake remains strong, with customers seeking flexible consumption models [40] Question: How are rising memory prices reflected in profitability outlook? - Management indicated that memory cost increases are expected to persist, but they have secured supply to meet guidance [44][46] Question: What is driving the uptick in networking growth expectations? - The increase is attributed to strong demand for products, particularly in AI and campus solutions, as well as successful integration with Juniper [59][63] Question: How does the company view demand elasticity in relation to price increases? - Management noted that demand remains strong, with customers willing to accept higher prices for faster delivery [52][54] Question: What is the mix between data center networking and routing in the networks for AI orders? - The growth in networks for AI orders is driven by both existing and new customers, with a strong pipeline supporting the raised outlook [85]

Financial Performance - In Q4 2025, total net revenue was $34.1 million, including $26.4 million from MIPLYFFA sales, $400,000 from OLPRUVA, $5.6 million from global EAP reimbursements, and $1.8 million from royalties under the AZSTARYS license [22][23] - For the full year 2025, net revenue reached $106.5 million, with $87.4 million from MIPLYFFA sales, $800,000 from OLPRUVA, $13 million from global EAP reimbursements, and $5 million from royalties [24] - Operating expenses for Q4 were $23 million, a decrease of $1.5 million year-over-year, while full-year operating expenses were $90.4 million, down $6.6 million from 2024 [22][24] - Net income for Q4 was $12.2 million, compared to a net loss of $35.7 million in Q4 2024, and full-year net income was $83.2 million, compared to a net loss of $105.5 million in 2024 [23][24] Business Line Performance - MIPLYFFA generated $87.4 million in revenue for the full year 2025, with strong commercial performance reflected in 52 prescription enrollment forms received in the first year of commercialization [5][6] - In Q4, 24 new prescription enrollment forms were received, contributing to a total of 161 enrollments since launch [6][14] - The company is expanding access to MIPLYFFA through a global expanded access program, with 113 patients enrolled by the end of 2025 [8] Market Data - The estimated U.S. prevalence of Niemann-Pick disease type C (NPC) is approximately 900 individuals, with 300-350 currently diagnosed [7] - In Europe, NPC prevalence is estimated at around 1,100 individuals, with the current EAP supporting nearly 10% of this population [9] - Diagnosis rates in Europe are higher due to the approval of miglustat, leading to stronger physician awareness and higher patient identification [10] Company Strategy and Industry Competition - The company aims to redefine therapies for rare diseases, focusing on patient-centricity, integrity, accountability, innovation, and courage [5] - MIPLYFFA has exclusivity in the U.S. through 2031 under the Orphan Drug Designation, and the company is pursuing a patent term extension [7] - The company is also advancing celiprolol for the treatment of vascular Ehlers-Danlos syndrome, with ongoing Phase III studies [10][11] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of MIPLYFFA, driven by both previously diagnosed and newly diagnosed patients [15][16] - The company is focused on expanding access and strengthening relationships with key opinion leaders to maximize commercial impact [10] - Management highlighted the importance of ongoing education and awareness campaigns to facilitate early diagnosis and treatment [16][18] Other Important Information - The company moved its headquarters to Boston to enhance collaboration and access to specialized talent [12][13] - The new CFO, Justin Renz, officially started on the call date and will support the company's long-term value creation [4][28] Q&A Session Summary Question: Can you provide details on the split of new diagnoses versus previously identified patients? - Management noted that there has been meaningful growth in newly diagnosed patients, attributed to clinical data strength and disease awareness campaigns [33][34] Question: What is the expected timeline for diagnosis confirmation? - Management indicated that the timeline for diagnosis can vary significantly due to the nature of rare diseases, but efforts are being made to streamline the process [37][40] Question: Can you discuss persistency rates for patients on therapy? - Management stated that it is too early to provide meaningful data on persistency but expressed encouragement from refill rates observed [45][46] Question: How is the initial experience with the Uniphar collaboration? - Management expressed satisfaction with the collaboration, noting that it has facilitated rapid product delivery to patients [47][48] Question: What is the expected growth of EAP revenue? - Management clarified that EAP revenue is based on individual patient shipments and will have variability quarter-over-quarter [54][55] Question: How is the gross to net evolving in the U.S.? - Management noted that gross to net has evolved and is dynamic, making it difficult to provide specific guidance [58] Question: What is the average age of patients on MIPLYFFA? - Management indicated that approximately half of MIPLYFFA patients are adults, reflecting the patient mix seen in the expanded access program [64][66] Question: What are the next steps for the EMA application? - Management confirmed readiness to respond to the EMA's questions and emphasized the robustness of the data package submitted [69]

Financial Data and Key Metrics Changes - The company reported full-year revenue of $40.9 million, representing a 26% growth over 2024 [5][21] - Fourth quarter revenue was $11.4 million, the highest revenue quarter of the year, up 13% from the third quarter but down slightly year-over-year [15][19] - Gross margin for the fourth quarter was 68.6%, down from 71.4% a year ago, but up from 63.8% in the third quarter [19][21] - Operating loss for the fourth quarter was $2.8 million, compared to an operating loss of about $200,000 in the prior year quarter [20][21] - Net loss for the fourth quarter was $3.8 million, or $0.09 per share, compared to a net loss of $300,000 or $0.01 per share for the same quarter last year [20][21] Business Line Data and Key Metrics Changes - The U.S. Orthotics and Prosthetics (O&P) channel achieved quarterly revenue exceeding $1 million for the first time, up 81% year-over-year [7][18] - International revenue reached a record $2.2 million, up 46% year-over-year, representing 19% of total revenue [18] - The company recorded 241 MyoPros ordered during the fourth quarter, up 5% sequentially from the third quarter [5][19] - Recurring patient sources, including referrals under the MyoConnect program, represented 42% of fourth quarter revenue, up from 26% in the fourth quarter of 2024 [8][18] Market Data and Key Metrics Changes - The company signed in-network contracts with additional Medicare Advantage and commercial payers, including a multi-state agreement with Elevance Health covering 45 million lives [10][11] - The patient pipeline stood at 1,528 patients as of December 31, 2025, an increase of 10% year-over-year [18] - The company faced challenges with Medicare Advantage payers, which issued a high number of pre-authorization denials [16][17] Company Strategy and Development Direction - The company aims to grow revenue through direct-to-patient marketing and expand orders from recurring sources [4] - A strategic pivot towards recurring patient sources is evident, with a focus on the MyoConnect program to engage therapists and physicians [8][12] - The company plans to limit advertising spending while building out the MyoConnect program and adding direct sales resources [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the O&P channel and international markets, despite challenges with Medicare Advantage [10][17] - The company expects revenue in 2026 to be in the range of $43 million to $46 million, with a focus on recurring sources [23][24] - Management anticipates a reduction in cash burn by roughly half in 2026 compared to 2025 [24] Other Important Information - The company launched the MyoPro Center of Excellence program to educate O&P practices on the new MyoPro 2X product [6] - A randomized controlled trial is being conducted to further validate the MyoPro's effectiveness, with results expected by the end of the year [79] Q&A Session Summary Question: What drove the increase in cost per pipeline ad in the MyoConnect program? - Management noted that the fourth quarter typically has higher advertising costs due to competition and that a new marketing head and agency have been brought on to address this [34][35] Question: Can you provide KPIs around the O&P channel? - The company has trained and certified a couple of dozen O&P providers, generating over $1 million in revenue in the quarter [38][39] Question: What are the assumptions for the U.S. O&P business in 2026 guidance? - Growth is expected in the O&P channel and international markets, while direct billing is anticipated to remain flat [41][42] Question: What is the status of the pipeline ads and dropout rate? - The pipeline ads were lower due to a shutdown in late December, and the dropout rate was noted to be around 20% [46][50] Question: How is the German market performing? - The German market is growing well due to favorable reimbursement policies and a strong recruitment of O&P practices [78] Question: What is the timeline for the MyoPro 3 model? - The MyoPro 3 will be a next-generation platform with significant improvements, but specific timelines were not provided [81]