Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1,670 million, representing a 6% reported growth and a 5.3% core growth compared to Q2 2024 [6][26] - Operating margin was 25.1%, and EPS was $1.31, growing 7% year over year [6][32] - The company experienced its fourth consecutive quarter of accelerating growth [7] Business Line Data and Key Metrics Changes - The Agilent CrossLab Group reported revenue of $713 million, growing 9% [27] - Life Sciences and Diagnostics Market Group revenue was $654 million, growing 3% [28] - Applied Markets Group revenue was flat at $300 million on a core growth basis [28] Market Data and Key Metrics Changes - All regions experienced growth: Americas grew low single digits, EMEA grew mid single digits, and China led with 10% growth [9][11] - India delivered high teens growth, and the company opened its first solution center in India [11] - PFAS testing grew more than 70% year over year globally, with Europe and China more than doubling their business [13][14] Company Strategy and Development Direction - The company is executing its three-year Ignite transformation strategy, which has resulted in early wins and tariff mitigation [8][20] - Agilent is focused on innovation and has launched several new products, including the Seahorse XF Flex analyzer and the InfinityLab Pro IQ series [22][23] - The company is committed to maintaining a strong balance sheet and exploring external growth opportunities [41] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term growth prospects, maintaining a core growth rate of 2.5% to 3.5% for the year [25][36] - The company is proactively managing tariff exposure and expects to fully mitigate costs by fiscal 2026 [24][37] - Despite exceeding expectations in Q2, management emphasizes the importance of a disciplined outlook due to ongoing macroeconomic uncertainties [26] Other Important Information - The company has a robust pipeline of opportunities aligned with its strategy and is focused on augmenting internal innovation with external growth [41] - Agilent's digital orders grew by 12% year over year to $295 million [16] Q&A Session Summary Question: Can you provide insights on order trends during the quarter? - Orders grew low single digits in Q2, with stable business across regions and no significant pull forward from pharma tariffs [47][48] Question: What are the expectations for the NASD and BioVectra businesses? - The CDMO business is seeing high single-digit growth, with confidence in double-digit growth for the second half of the year [50][53] Question: What was the impact of tariffs on consumables? - The $15 million of consumables pulled forward was due to customer anticipation of tariffs, with no overall revenue impact for Q2 [60][61] Question: How is the Infinity Tree replacement cycle performing? - The Infinity Tree ramp is strong, with positive customer feedback and increasing adoption rates [88][89] Question: What is the outlook for pricing in light of tariffs? - The company has achieved significant pricing contributions and expects to maintain pricing strategies to mitigate tariff impacts [83][85]

Financial Data and Key Metrics Changes - In fiscal 2025, the company achieved a net sales growth of 28% and adjusted EBITDA growth of 26% [2][35] - Q4 net sales grew 4% year over year, following a 71% growth in Q4 of the previous year [32] - Adjusted net income for Q4 was $45 million, or $0.78 per diluted share, compared to $31 million, or $0.53 per diluted share a year ago [34] Business Line Data and Key Metrics Changes - The company is the number one brand in the U.S. by unit share in cosmetics and has seen significant growth in skincare with e.l.f. Skin and Naturium [9][46] - International net sales grew 60% in fiscal 2025, with total international sales reaching $250 million, representing nearly 20% of total sales [15][36] - The company expanded its market share in the U.S. mass cosmetics and skincare sectors, achieving new highs [35] Market Data and Key Metrics Changes - The company gained 190 basis points of market share in the U.S. and 270 basis points in the UK during fiscal 2025 [2][35] - In Q4, U.S. net sales grew 1% year over year, while international sales grew 19% [32][33] - The company’s household penetration in the U.S. grew almost 400 basis points compared to the previous year [6] Company Strategy and Development Direction - The company plans to mitigate tariff impacts through pricing adjustments, supply chain optimization, and business diversification [12][14] - The acquisition of Rhode is seen as a unique opportunity to enhance growth and innovation in the beauty industry [47][61] - The company aims to maintain a strong focus on share gains in the U.S. and expanding its international business [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s ability to continue gaining market share despite tariff uncertainties [30][66] - The company is not providing a fiscal 2026 outlook due to the broad range of potential tariff outcomes [11][38] - Management noted that consumption trends in Q1 are better than in Q4, with positive growth in various channels [39][66] Other Important Information - The company ended fiscal 2025 with $149 million in cash, up from $108 million the previous year, and generated approximately $115 million in free cash flow [37] - The company plans to implement a $1 price increase across its entire product assortment globally, effective August 1 [12][100] - The company’s marketing and digital investment for Q4 was 23% of net sales, down from 34% the previous year [34] Q&A Session Summary Question: Can you provide insights on Q1 performance and Dollar General? - Management indicated that Q1 performance is strong, with Dollar General exceeding expectations and gaining market share [68] Question: Can you elaborate on the Road acquisition and its integration? - The Road brand will continue to operate independently from Los Angeles, with plans for global expansion and a focus on the Sephora rollout [70][72] Question: What are the expected impacts of tariffs in Q1? - Management confirmed that tariff impacts will start in Q1, with no pricing adjustments in effect during that period [94] Question: How will the pricing increase affect sales? - The company anticipates a positive community response to the $1 price increase, with expectations of maintaining market share [102] Question: What are the growth opportunities for Road? - The Road brand has significant growth potential, with plans to expand its product assortment and leverage e.l.f.'s marketing capabilities [110]

Financial Data and Key Metrics Changes - The company ended 2024 with approximately $440 million in cash, outperforming cash flow projections, and expects to burn about $110 million in 2025 [49] - The company aims to achieve cash flow breakeven by 2027, with several levers to pull, including contracting and cost control [50][52] Business Line Data and Key Metrics Changes - The company operates in two programs: Medicare Advantage (MA) and ACO REACH, with ACO REACH showing about $150 million in savings and a 13% gross savings rate [8] - Quality scores in the Medicare Advantage program are above 4 stars, with year two plus markets running at 4.25 or better, which is a key differentiator [6][7] Market Data and Key Metrics Changes - The company has seen a consistent cost trend of approximately 7% in 2023 and 2024, with a projected 5.3% for 2025 [30][31] - Utilization trends have remained consistent, with inpatient spend being a significant driver, particularly in oncology drugs [55] Company Strategy and Development Direction - The company is focused on transitioning from fee-for-service to value-based care, emphasizing the importance of the primary care physician-patient relationship [4][10] - The company is being measured in its growth strategy, with a reduction in new member classes for 2025 to 20,000, while planning for 30,000 to 45,000 in 2026 [15][70] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging macro environment but notes strong demand from physician groups and payers for the move to value-based care [14][19] - The company is focused on improving performance and reducing volatility, having exited two partnerships last year [41][46] Other Important Information - The company has reduced its Part D exposure from 70% to 30% of its membership for 2025, aiming to further decrease this by 2026 [44] - The company is implementing a new financial data pipeline to enhance revenue and claims information accuracy [34] Q&A Session Summary Question: What are the implications of the current risk adjustment process? - The company emphasizes the importance of the PCP-patient relationship and has a robust risk adjustment process in place, including a 100% chart review process [22][24] Question: How is the company managing utilization trends? - Utilization trends are consistent with expectations, with inpatient spend being a significant driver, particularly in oncology [55] Question: What is the company's strategy for physician partnerships? - The company maintains high net promoter scores from physicians, indicating strong engagement and satisfaction with the value-based care model [59][63]

Financial Data and Key Metrics Changes - The company has $275 billion in assets under management, with 90% deployed in the U.S. [9] - Spreads have widened back up from their lows by approximately 25 to 50 basis points, indicating a stable pricing environment despite market volatility [20][21] - The company reported strong net inflows even during periods of market panic, demonstrating resilience in retail flows [36] Business Line Data and Key Metrics Changes - The company has three established flagship products: Diversified Core Income Product, Technology Income, and O Rent, with a newly launched Alternative Credit Interval Fund [42][44] - O Rent is noted as the fastest-growing product, significantly contributing to net capital raising [49] - The company is focused on expanding its distribution footprint, particularly in underpenetrated markets like Japan [46] Market Data and Key Metrics Changes - The direct lending market is gaining share as the syndicated loan market experiences volatility, with many borrowers preferring the predictability and partnership offered by direct lending [12][19] - The company is seeing a shift in investor behavior, with retail investors viewing alternative products as a safe haven during market volatility [36][38] Company Strategy and Development Direction - The company aims to focus on income-oriented products and has a strategic approach to acquisitions, targeting firms that align with its culture and operational model [91][92] - The company is expanding into digital infrastructure and alternative credit markets, recognizing the growing demand for these sectors [66][80] - The company emphasizes the importance of maintaining a strong partnership with borrowers, offering predictability and privacy in lending [13][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current economic uncertainty and stickier inflation but views it as a favorable environment for their business model focused on downside protection and stability [4][5] - The company does not anticipate material stress in its portfolio, as it primarily lends to large, durable companies in sectors like software and healthcare [10][11] - Management believes that the private equity market is more resilient due to the availability of capital in the private credit market, which supports ongoing M&A activity [30][31] Other Important Information - The company has integrated its capabilities with Coveris Asset Management to enhance its distribution channels and asset management capabilities [83][85] - The company is exploring opportunities in the retirement market, recognizing its potential for growth in the long term [58][60] Q&A Session Summary Question: How is the balance between the syndicated loan market and direct lending tracking? - The company notes that when the syndicated market is active, borrowers may prefer it, but when it closes, they have no choice but to return to private markets, which benefits direct lending [12][19] Question: What is the view on retail flows and redemption trends? - Management reports strong net inflows and a shift in retail investor behavior towards viewing alternative products as a safe haven [36][38] Question: How does the company view the current M&A environment? - While a less active M&A market is a negative, it can also lead to increased market share for direct lending as liquid markets become less favorable [26][29]

Financial Data and Key Metrics Changes - Etsy reported over $11 billion in gross merchandise sales (GMS) and over $2.5 billion in revenue, with $750 million in free cash flow, showing significant growth from $2 billion in GMS and less than $400 million in revenue when the CEO joined in 2017 [5][6][11] - The company has retained nearly all of the buyers and GMS gained during the pandemic, with 88 million active buyers at the end of the previous year [11][12] Business Line Data and Key Metrics Changes - The core Etsy business has high operating margins, while the overall corporate average is diluted by lower margins from Depop and Reverb, which are being consolidated [77][82] - The company has maintained strong margin discipline despite GMS pressures, with gross margins expected to remain in the low 70% range [76][80] Market Data and Key Metrics Changes - Etsy's marketplace supports approximately 90 million active buyers and 5.5 million sellers, indicating a robust community [3] - The company has a significant opportunity to grow in its most penetrated markets, with one out of three women in the US and UK having purchased from Etsy in the last year [68][69] Company Strategy and Development Direction - Etsy aims to enhance personalization and browsing experience on its platform, focusing on making the site more app-based and improving product discovery [14][46] - The company is investing in local search and cross-border shipping to drive growth in international markets, particularly in Europe [73] Management's Comments on Operating Environment and Future Outlook - Management noted that while discretionary purchases have been under pressure, Etsy has not seen significant market diversion due to economic conditions [22] - The company is optimistic about improving year-over-year comparisons in GMS as the year progresses, citing easier comparisons in the second half of the year [16] Other Important Information - Etsy has a proactive approach to managing tariff impacts, with a focus on local sourcing and flexibility within its seller community [24][25] - The company has about $800 million remaining on its current share repurchase authorization, indicating strong free cash flow generation [85] Q&A Session Summary Question: How does Etsy plan to improve GMS growth? - Management discussed the importance of improving product experience and infrastructure, which is expected to drive GMS growth in the coming quarters [19][20] Question: What is the impact of tariffs on Etsy's business? - Management indicated that Etsy's seller community is resilient and that the company is actively informing sellers about tariff changes, while also highlighting that only about 1% of GMS comes from US buyers purchasing from sellers in China [27][28] Question: How does Etsy view its competition and market dynamics? - Management acknowledged the dynamic nature of the market and emphasized that Etsy's value proposition would strengthen if tariffs against China remain in place [36] Question: What are the expectations for margins in the upcoming year? - Management confirmed that gross margins are expected to remain in the low 70% range, with continued cost discipline being a priority [76][80] Question: How does Etsy plan to engage lapsed users? - Management highlighted the opportunity to re-engage the 100 million lapsed users who have previously shopped on Etsy, focusing on reminding them of the unique offerings available [69][70]

Financial Data and Key Metrics Changes - The company reported a 16% growth in Q1, indicating a steady performance in its growth portfolio despite the decline in its legacy portfolio due to loss of exclusivity (LOE) exposure [6][10] - The company aims to achieve $2 billion in cost savings, building on the previous commitment of $1 billion announced in 2024, to enhance financial discipline and efficiency [8][42] Business Line Data and Key Metrics Changes - The late-stage pipeline is expected to deliver 15 registrational data readouts over the next 18 to 24 months, with six of these for new molecular entities [7] - The company is focusing on maintaining growth in its current portfolio while managing the decline in its legacy portfolio due to LOE [6] Market Data and Key Metrics Changes - The company is actively monitoring external pressures such as government agency changes, tariffs, and executive orders that could impact the industry [12][14] - The company has committed $40 billion in additional investments over the next five years to strengthen its position in the U.S. market [17] Company Strategy and Development Direction - The company is focused on emerging as one of the fastest-growing companies in the sector by prioritizing its growth portfolio, late-stage pipeline, and financial discipline [5][10] - The company is engaging constructively with the administration to address pricing dynamics and potential reforms in the industry [20][21] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of maintaining focus on controllable factors within the company while navigating external pressures [13][14] - The leadership team believes that operational efficiency and financial discipline will be increasingly valued in the industry moving forward [42][47] Other Important Information - The company is committed to leveraging technology and improving operational execution to enhance efficiency and agility [38][39] - The company is actively pursuing business development opportunities that align with its strategic goals and can drive growth [56][57] Q&A Session Summary Question: How does the company rank the pressures from tariffs, government changes, and other external factors? - Management stated that they prioritize controllable factors while engaging with external pressures, categorizing them into government agency changes, tariffs, and executive orders [12][14] Question: What is the company's approach to managing inventory in light of potential tariffs? - The company has taken steps to mitigate risks by bringing in products from outside the U.S. and believes the impact of tariffs will be manageable [22][23] Question: How does the company view the potential impact of drug pricing reforms? - Management acknowledged the uncertainty surrounding drug pricing reforms but emphasized the importance of engaging with the administration to find common ground [25][26] Question: What are the key strategic changes made since the new CEO took over? - The CEO highlighted the need for clarity in strategic priorities, execution consistency, and financial discipline as key focus areas for the organization [35][36] Question: How does the company plan to ensure the success of CoBINFI? - The company is focused on driving breadth and depth of use for CoBINFI, emphasizing peer-to-peer education and addressing physician concerns about switching therapies [72][74]

Financial Data and Key Metrics Changes - The company aims to increase throughput by 20% this year compared to last year, alongside significant cost savings across all business segments [3] - The company has a free cash flow guidance of $300 million to $500 million for the year, with performance on ship deliveries and contract negotiations influencing the outcome [112] Business Line Data and Key Metrics Changes - The company secured two ships under contract in Block V at the end of Q1, with plans to contract the next 15 submarines, which will provide a solid workload for the next 15 to 20 years [3][9] - The company is focused on improving retention and increasing outsourcing and insourcing to enhance throughput [31] Market Data and Key Metrics Changes - There is significant demand for both defense and commercial shipbuilding, with the company expressing confidence in the outlook for the next decade [6][9] - The company has seen a stable supply chain post-COVID, with investments flowing into the supply chain helping to stabilize operations [26] Company Strategy and Development Direction - The company is prioritizing execution in shipbuilding, with a focus on increasing throughput and reducing costs [3] - The establishment of a White House office for shipbuilding is viewed positively, as it provides a voice for the administration to the Navy and Congress [12][13] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the support for shipbuilding from the government and believes that the demand will continue to grow [6][9] - The company is working closely with the Navy and Electric Boat to analyze investments required to increase throughput and achieve necessary margins [59] Other Important Information - The company is addressing labor challenges by focusing on hiring more experienced personnel and increasing wages to attract high-quality individuals [22][56] - The company has a significant backlog in Mission Technologies, with nearly $12 billion in awards last year, indicating strong performance in that segment [101] Q&A Session Summary Question: What are the company's most important priorities right now? - The company emphasizes execution, increasing throughput, and securing new contracts as its main priorities [3] Question: How does the reconciliation bill impact shipbuilding? - Management believes the reconciliation bill provides significant support for shipbuilding, although the specifics of its interaction with the 2026 budget are still unclear [6] Question: What is the outlook for the Columbia Class Bill? - The company reports that the second boat is progressing well, with significant learning from the first boat leading to improved cost performance [44] Question: How is the company managing labor challenges? - The company is focusing on hiring experienced workers and increasing wages to reduce attrition and improve workforce quality [22][56] Question: What are the expectations for future cash flow? - Future cash flow will depend on executing ship deliveries and achieving throughput goals, with potential for higher cash flow if these targets are met [112] Question: What is the company's strategy for Mission Technologies? - The company is bundling capabilities in electronic warfare, C5ISR, and uncrewed vehicles to pursue government contracts effectively [99][100]

Financial Data and Key Metrics Changes - The company reported strong first-quarter results, beating guidance, with a general expectation of normal activity across the industry [8][10] - Mortgage activity is down approximately 50% compared to pre-COVID levels, with a forecasted decline of 12% for the year [10][11] - The company anticipates a revenue impact of around $100 million due to the decline in mortgage activity [11] Business Line Data and Key Metrics Changes - The financial institutions (FI) segment remains stable, with strong performance from banks and fintechs, although subprime lending has seen increased delinquency [6][7] - The government social services business is growing, driven by ongoing demand for social services [11] - The talent business has shown resilience despite slight declines in the hiring market, with strong performance from new product offerings [11] Market Data and Key Metrics Changes - Consumer confidence is declining, and there are signs of tightening credit supply and demand, but unemployment remains low, which is a positive indicator for lending [5][6] - The mortgage market is experiencing challenges due to rising interest rates, impacting overall market activity [10][11] - The company is seeing a shift towards more subscription-based revenue models, which are more resilient during economic downturns [19][21] Company Strategy and Development Direction - The company is focusing on innovation and leveraging its data assets post-cloud migration to enhance product offerings [37][46] - There is a strategic shift towards subscription models in both government and talent segments, providing a more stable revenue base [19][21] - The company aims to address improper payments in government social services, viewing this as a significant growth opportunity [80][81] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding the impact of tariffs and inflation on consumer behavior and lending activity [5][6] - The company is optimistic about its ability to navigate potential recessionary environments due to a changing mix of recession-resilient businesses [17][19] - There is a focus on addressing improper payments in government services, which is expected to drive growth in that segment [80][81] Other Important Information - The company has launched a new product combining income and employment data with credit data to enhance its mortgage offerings [34][38] - The government vertical is seen as a tailwind for the company, with significant opportunities to reduce improper payments [80][81] - The company is expanding its record-keeping capabilities, particularly in the ten ninety-nine and pension records segments [72][74] Q&A Session Summary Question: How healthy are US consumers and what are the implications for subprime lending? - Management noted that while consumer confidence is low, unemployment remains low, which supports lending activity. However, there are concerns about inflation impacting subprime consumers [5][6] Question: How does the company expect to perform in a stagflation environment? - Management indicated that they have not modeled stagflation but have prepared for a recession scenario, expecting a mix of recession-resilient businesses to support performance [15][17] Question: What are the implications of recent comments from the FSRA Director regarding mortgage credit files? - Management stated that they are focused on what they can control and do not expect significant changes to the pricing of credit files, emphasizing the value of pulling multiple credit reports [26][30] Question: How is the company addressing the competitive landscape in the income and employment data space? - Management highlighted their strong position due to scale and the addition of new records, while also noting the friction associated with consumer consented solutions from competitors [55][59] Question: What is the company's strategy for expanding into ten ninety-nine pension records? - Management detailed their approach to acquiring records through partnerships and direct outreach to companies, emphasizing the potential for significant growth in this area [72][74]

Financial Data and Key Metrics Changes - Consumer spending trends have remained stable, with low unemployment and wage growth supporting purchasing power [7][9] - Cross-border travel growth rate was reported at 16%, indicating a healthy trend despite some volatility in select markets [12][16] Business Line Data and Key Metrics Changes - The company has seen strong performance in cross-border e-commerce, which remains consistently strong with no changes reported [16] - The commercial payments segment is identified as a significant opportunity, with a serviceable addressable market sized at $80 trillion [66] Market Data and Key Metrics Changes - The company operates in a highly competitive landscape with increased competition from local schemes, international networks, and digital wallets [21][22] - 70% of the company's revenue comes from outside the United States, highlighting the importance of international markets [29] Company Strategy and Development Direction - The company emphasizes the importance of trust and flexibility in navigating a complex operating environment influenced by geopolitical and regulatory changes [3][4] - Partnerships with local wallets and digital payment solutions are being pursued to enhance market presence and consumer engagement [32][41] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the macroeconomic challenges but emphasizes the company's diversified model and ability to adapt to various economic conditions [10][96] - The company is optimistic about the growth potential in emerging markets and the ongoing digital transformation in payments [30][64] Other Important Information - The company is focusing on tokenization as a foundational layer for enhancing security and programmability in transactions [43][45] - Recent partnerships, such as with Alipay and GCash, aim to extend the use of local e-wallets for cross-border payments [33][36] Q&A Session Summary Question: What are the consumer spending trends? - Consumer spending trends have remained stable, supported by low unemployment and wage growth [7][9] Question: Can you discuss cross-border travel trends? - Cross-border travel growth rate is at 16%, with some volatility in select markets but overall solid performance [12][16] Question: How is the competitive environment affecting the company? - The market is highly competitive with various players, but the company is winning through trust and tailored solutions [21][22] Question: What is the company's approach to tokenization? - Tokenization is growing rapidly, with 35% of all switch transactions already tokenized, enhancing security and user experience [44][45] Question: How does the company view the role of stablecoins? - Stablecoins are seen as having potential in B2B and cross-border payments, with the company ready to enable stablecoin settlement when regulatory clarity is achieved [56][64]

Financial Data and Key Metrics Changes - The company is focused on achieving high single-digit revenue growth and 500 basis points of margin expansion by 2027, excluding the Greater China region [30][31] - The company has made cost reductions of approximately $100 million this year and beyond to improve its financial position [24][36] Business Line Data and Key Metrics Changes - The clinical segment accounts for approximately 55% of revenue and showed strong growth in Q1, with good placements of the X platform and mid-single-digit growth in consumables [60] - The academic and government end market, which represents about 50% of revenue, has been lowered by 15% in guidance due to funding pressures [42][47] Market Data and Key Metrics Changes - The company has noted that more than 50% of its revenue comes from clinical applications, with less than 50% from academic research, indicating a significant reliance on clinical markets [44] - The company expects the long-term growth rate for the academic market to return to around 6%, but anticipates subdued growth through 2025 due to current uncertainties [46][47] Company Strategy and Development Direction - The company is transitioning to focus on end-to-end workflows and deep insights rather than solely on sequencing, aiming to drive genomics to the next level [26][30] - The strategy emphasizes customer intimacy and operational excellence, with a commitment to innovation and maintaining a competitive edge in the market [17][71] Management's Comments on Operating Environment and Future Outlook - Management acknowledged unexpected challenges in 2025, including being placed on the unreliable entity list by Chinese authorities and NIH funding challenges, but emphasized the importance of controlling what can be controlled [21][22] - The company remains optimistic about growth opportunities in the multiomics space and believes that new product introductions will drive future revenue [34][39] Other Important Information - The company is committed to maintaining a strong presence in China, despite current challenges, and sees potential long-term opportunities in the market [54][56] - The company has launched new technologies, such as Constellation, which are expected to enhance its product offerings and customer engagement [74][90] Q&A Session Summary Question: What are the company's expectations for academic growth? - Management believes that academic growth may return to the expected 6% in the future, but it is uncertain whether this will happen within the next four years [42][46] Question: How does the company plan to address competition in the clinical market? - Management emphasized the importance of innovation and customer reliance on Illumina's solutions, stating that customers recognize the value of their investments in Illumina's technology [62][66] Question: What is the company's stance on the situation in China? - Management stated that while China represents less than 5% of revenue, they are actively working to improve relations and maintain a presence in the market, viewing it as a long-term opportunity [52][54]