Financial Data and Key Metrics Changes - Net revenue for Q3 FY2026 was $581 million, an increase of $59 million or 11.3% from $522 million in the prior year quarter [16] - Consolidated gross margin as a percentage of net revenue decreased to 23.4% from 24.9% in the same period last year [18] - Net income was $44.1 million, down from $56.5 million in the same quarter of the prior year, with diluted earnings per share at $5.58 compared to $6.90 [20] Business Line Data and Key Metrics Changes - Factory-built housing segment net revenue was $558.5 million, up 11.5% from $500.9 million in the prior year quarter, primarily due to the addition of American Homestar [16] - Financial services segment net revenue increased to $22.5 million, up 6.2% from $21.2 million in the prior year quarter [17] - Gross profit in the factory-built housing segment was 21.7%, down from 23.6% in the prior year quarter due to higher per unit costs [18] Market Data and Key Metrics Changes - Industry shipments slowed in October and November, down 13% from the calendar 2024 period, with Cavco's volume down about 4% compared to last year [6][9] - The Southeast region saw higher volume in Q3 versus Q2, while most other regions experienced declining shipments [8] - Average selling price grew sequentially despite the volume drop-off, indicating underlying demand [9] Company Strategy and Development Direction - The company is focused on integrating American Homestar and realizing synergies, with an estimated annual synergy of over $10 million, half of which has been achieved [12][14] - Continued share repurchases during the quarter, with $44 million used to buy back company stock, reflecting a commitment to return capital to shareholders [15] - The company is enhancing its digital marketing infrastructure and rebranding efforts to improve market presence and customer engagement [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the spring selling season, citing healthy leading indicators such as quotes and retail traffic [10] - The company is monitoring the impact of weather on operations but remains confident in maintaining production rates and backlogs [33][81] - Discussions around affordable housing policies are seen as supportive for factory-built housing, especially with upcoming elections [10] Other Important Information - SG&A expenses increased to $81.4 million, or 14% of net revenue, primarily due to the addition of American Homestar and higher compensation costs [18][19] - Interest income decreased to $3 million from $5.4 million in the prior year quarter due to lower cash balances after the acquisition [19] Q&A Session Summary Question: What caused the lower utilization and production adjustments? - Management noted a significant industry downturn in October and November, but the Southeast region performed well, and production rates were maintained to prepare for potential increases in the spring [28][30] Question: What is the outlook for gross margins and cost impacts? - Management indicated that gross margins were affected by higher input costs, but no significant impact from acquisition accounting was noted [37][64] Question: How are community sales performing compared to retail? - Community sales showed relative weakness, but management did not perceive this as a long-term trend, noting that communities remain optimistic about future sales [52][55] Question: What are the expectations for synergies from the American Homestar acquisition? - Management expects to realize $10 million in annual synergies, with approximately half already achieved, focusing on purchasing and labor savings [99] Question: How is the company positioned for the upcoming spring selling season? - Management expressed confidence in maintaining production rates and backlogs, with positive indicators from recent industry events and customer discussions [88][90]

Financial Data and Key Metrics Changes - Net revenue for Q3 FY2026 was $581 million, an increase of $59 million or 11.3% from $522 million in the prior year quarter [16] - Consolidated gross margin as a percentage of net revenue decreased to 23.4% from 24.9% in the same period last year [18] - Net income was $44.1 million, down from $56.5 million in the same quarter of the prior year, with diluted earnings per share at $5.58 compared to $6.90 [20] Business Line Data and Key Metrics Changes - Factory-built housing segment net revenue was $558.5 million, up 11.5% from $500.9 million in the prior year quarter, primarily due to the addition of American Homestar [16] - Financial services segment net revenue increased to $22.5 million, up 6.2% from $21.2 million in the prior year quarter, driven by higher insurance premium rates [17] Market Data and Key Metrics Changes - Industry shipments slowed in October and November, down 13% from the calendar 2024 period, with Cavco's volume down about 4% compared to last year [6][8] - The Southeast region saw higher volume in Q3 versus Q2, while most other regions experienced declining shipments [8] Company Strategy and Development Direction - The company is focused on integrating American Homestar, with estimated annual synergies above $10 million, half of which has been achieved [12][14] - The company continues to enhance its digital marketing infrastructure and rebranding efforts to improve market presence and customer engagement [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the spring selling season, citing healthy leading indicators such as quotes and retail traffic [10][86] - The company noted that while there is uncertainty in the market, the tone from operations and market feedback remains positive [10] Other Important Information - The company repurchased $44 million of common shares during the quarter, maintaining a healthy unrestricted cash balance of $225 million [15][20] - SG&A expenses increased due to the addition of American Homestar and higher compensation costs, expected to decline as synergies are realized [19] Q&A Session Summary Question: What caused the lower utilization and production adjustments? - Management noted that the industry experienced a significant downtick in October and November, with the Southeast region performing better than others [28][30] Question: How is the gross margin impacted by acquisition accounting? - Management clarified that there was no impact on gross margins from the acquisition, with year-over-year declines attributed to increases in input costs [38][65] Question: What are the updated synergy targets from the American Homestar acquisition? - Management indicated that the annualized synergy target is $10 million, with approximately half already actioned, expected to contribute positively in Q4 [95][96]

Financial Data and Key Metrics Changes - The bank's net interest margin (NIM) expanded to 3.21%, up 2 basis points from the prior quarter [6][7] - Return on average tangible equity was 15.8% for the fourth quarter and 16.3% for the full year [4] - Net interest income for the fourth quarter was $170.3 million, an increase of $1 million from the previous quarter [6][7] - The effective tax rate for the fourth quarter was 24.8%, expected to return to about 23.2% going forward [4] Business Line Data and Key Metrics Changes - Total loans grew by $183 million in the quarter, or 5.2% on an annualized basis, with significant growth in commercial and industrial (C&I) loans [5] - Retail and commercial deposits increased by $233 million, while public deposits declined by $447 million, resulting in a net increase of $214 million in deposits [6] - Non-interest income was reported at $55.6 million, while non-interest expense was $125.1 million for the fourth quarter [7] Market Data and Key Metrics Changes - The state unemployment rate was 2.2% in November, significantly lower than the national rate of 4.5% [3] - Total visitor arrivals in Hawaii were down 0.2% year-over-year, but spending increased by 6% to $19.6 billion [3] - The median single-family home price in Oahu rose to $1.1 million, a 4.3% increase from the previous year [3] Company Strategy and Development Direction - The company aims for full-year loan growth in the range of 3%-4%, primarily driven by C&I and commercial real estate (CRE) loans [11] - The bank plans to maintain a conservative approach to credit losses, with an allowance for credit losses increasing to $168.5 million [9] - The new stock repurchase authorization is for $250 million, providing flexibility for capital return strategies [5][54] Management's Comments on Operating Environment and Future Outlook - Management noted that credit risk remains low and stable, with no broad signs of weakness in consumer or commercial books [8] - The outlook for NIM is projected to be in the range of 3.16%-3.18%, with expectations of tailwinds from fixed asset repricing [11] - Management expressed confidence in the growth of multifamily loans and anticipated a normalization of growth in the second half of the year [18][39] Other Important Information - The bank repurchased about 1 million shares, utilizing the remaining $26 million of its $100 million purchase authorization for 2025 [5] - The bank's capital position remains strong, with a common equity tier 1 (CET1) ratio above the targeted 12% [54] Q&A Session Summary Question: Loan growth trends and pipeline - Management indicated that loan growth was broad-based, with C&I growth driven by existing lines and new dealer relationships [17] Question: Payoffs and paydowns in the industry - Management noted that payoffs have been occurring sooner than expected due to increased competition from permanent lenders [21] Question: Deposit trends and NIM expansion - Management confirmed that the margin guide reflects the ability to continue cutting deposit rates and fixed asset repricing [25] Question: Expense growth expectations - Management expects a normalization of expense growth in 2026, with a projected expense of about $520 million [45] Question: Capital return and buyback strategy - Management expressed a strong appetite for continuing the share buyback program while considering organic growth opportunities [51]

Financial Data and Key Metrics Changes - Net revenue for Q3 2026 was $581 million, an increase of $59 million or 11.3% from $522 million in the prior year quarter [15] - Consolidated gross margin as a percentage of net revenue decreased to 23.4% from 24.9% in the same period last year [16] - Net income was $44.1 million, down from $56.5 million in the same quarter of the prior year, with diluted earnings per share at $5.58 compared to $6.90 [19] Business Line Data and Key Metrics Changes - Factory-built housing segment net revenue was $558.5 million, up 11.5% from $500.9 million in the prior year quarter, primarily due to the addition of American Homestar [15] - Financial services segment net revenue increased to $22.5 million, up 6.2% from $21.2 million in the prior year quarter, driven by higher insurance premium rates [16] - Gross profit in the factory-built housing segment decreased to 21.7% from 23.6% in the prior year quarter due to higher per unit costs [17] Market Data and Key Metrics Changes - Industry shipments slowed in October and November, down 13% from the calendar 2024 period, with Cavco's volume down about 4% compared to last year [5] - The Southeast region stabilized and saw higher volume in Q3 versus Q2, while most other regions experienced declining shipments [8] - Average selling price grew sequentially despite the volume drop-off, with single-section home prices roughly flat and multi-section pricing up [9] Company Strategy and Development Direction - The company is focused on integrating American Homestar, with estimated annual synergies above $10 million, half of which has been achieved [12] - Continued share repurchases during the quarter amounted to $44 million, with a healthy unrestricted cash balance of $225 million at the end of Q3 [14] - The company is optimistic about the spring selling season, with healthy leading indicators such as quotes and retail traffic [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the tone in operations and the market is optimistic, with discussions around affordable housing gaining traction [10] - The company is maintaining production rates and staffing levels to be well-positioned for potential increases in demand during the spring [28] - Management acknowledged challenges due to weather impacting operations but expressed confidence in the stability of backlogs [82] Other Important Information - SG&A expenses increased to $81.4 million, or 14% of net revenue, primarily due to the addition of American Homestar and higher compensation costs [17] - Interest income decreased to $3 million from $5.4 million in the prior year quarter due to lower cash balances after the acquisition [18] Q&A Session Summary Question: What caused the lower utilization and how should production be viewed for Q4? - Management indicated that the industry experienced a significant downtick in October and November, but production rates were maintained to prepare for potential increases in the spring [28][30] Question: Can you elaborate on gross margin impacts and acquisition accounting? - Management clarified that there was no impact on gross margins from the acquisition, with year-over-year declines attributed to increases in input costs [38][65] Question: What are the updated synergy targets from the American Homestar acquisition? - Management stated that annualized synergies are expected to reach $10 million, with approximately half already realized [99]

Financial Data and Key Metrics Changes - High Tide reported record revenue of CAD 164 million for Q4 2025, representing a 19% year-over-year increase and a 10% sequential increase [7][26] - The annual revenue run rate exceeded CAD 650 million, with record Adjusted EBITDA of CAD 12.4 million, up 51% year-over-year [7][28] - Consolidated gross margins were 26% in Q4, consistent with the previous year, while Adjusted EBITDA margins reached a new record of 9.4% [27][28] Business Line Data and Key Metrics Changes - The brick-and-mortar segment led revenue growth, achieving a 15% year-over-year increase, driven by same-store sales growth of 5.5% [7][26] - Cabanalytics, the business data and insight platform, generated CAD 13.1 million in Q4, up 20% year-over-year [26] - The adjusted EBITDA for the brick-and-mortar segment was CAD 14.1 million, highlighting strong cost controls and operational efficiency [28] Market Data and Key Metrics Changes - Canna Cabana's market share in the five provinces increased to 12%, up from 11% a year ago, while total industry sales in these provinces grew by only 4% [11][12] - The average Canna Cabana store generated an annual revenue run rate of CAD 2.6 million, significantly higher than the peer average of CAD 1.2 million [11] - The company has expanded its store count by 27% in Ontario, accounting for all growth in the province, while the rest of the industry remained flat [15] Company Strategy and Development Direction - High Tide aims to add another 20-30 new stores in 2026, continuing its focus on organic growth [8] - The company is exploring M&A opportunities, with discussions ongoing regarding potential acquisitions [8][56] - High Tide's strategy includes leveraging relationships with licensed producers to enhance procurement and operational efficiency, particularly in the German market through the acquisition of Remaxion [19][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, particularly in the German medical cannabis market, despite short-term challenges related to inventory [22][40] - The company anticipates that the U.S. regulatory environment may shift positively, creating opportunities for strategic partnerships and market entry [75] - Management highlighted the resilience of the business model, noting that competitors are exiting the market, which could provide further growth opportunities [56] Other Important Information - High Tide generated CAD 12 million of Free Cash Flow for the fiscal year, meeting its goal of remaining positive [32] - The company has a strong balance sheet with total debt of CAD 65.5 million and CAD 47.9 million in cash and cash equivalents [32] - The Cabana Club loyalty program has grown to 2.5 million members, up 45% year-over-year, contributing to customer retention and sales growth [9][47] Q&A Session Summary Question: Impact of inventory issues in Germany on Q1 results - Management acknowledged that inventory issues in Portugal would impact Q1 results but expressed confidence in future growth once these challenges are resolved [36][40] Question: Brick-and-mortar business margins and growth - Management confirmed that brick-and-mortar margins have increased for four consecutive quarters, driven by strong sales and operational efficiencies [41][46] Question: M&A environment and competitor exits - Management noted that smaller competitors are exiting the market, creating opportunities for potential acquisitions, and expressed optimism about future M&A activity [56][57] Question: Budtender training and engagement - Management emphasized the importance of budtender training and engagement to enhance customer experience and brand loyalty [64] Question: January performance and Remaxion's outlook - Management reported improved performance in January compared to previous months and expressed optimism about future gross margins for Remaxion [67][68]

Financial Data and Key Metrics Changes - High Tide reported record revenue of CAD 164 million for Q4 2025, representing a 19% year-over-year increase and a 10% sequential increase [7][26] - The annual revenue run rate exceeded CAD 650 million, with record Adjusted EBITDA of CAD 12.4 million, up 51% year-over-year [7][28] - Consolidated gross margins were 26% in Q4, consistent with the previous year, while Adjusted EBITDA margins reached a new record of 9.4% [27][28] Business Line Data and Key Metrics Changes - The brick-and-mortar segment led revenue growth, achieving a 15% year-over-year increase, driven by same-store sales growth of 5.5% [7][26] - Cabanalytics, the business data and insight platform, generated CAD 13.1 million in Q4, up 20% year-over-year [26] - The adjusted EBITDA for the brick-and-mortar segment was CAD 14.1 million, highlighting strong cost controls and operational efficiency [28] Market Data and Key Metrics Changes - Canna Cabana's market share in the five provinces increased to 12%, up from 11% a year ago, while total industry sales in these provinces grew by only 4% [11][12] - The average Canna Cabana store generated an annual revenue run rate of CAD 2.6 million, significantly higher than the peer average of CAD 1.2 million [11] - The company added 27 stores in 2025, with plans to add another 20-30 stores in 2026, despite increased competition [8][24] Company Strategy and Development Direction - High Tide aims to continue organic growth through store expansion and enhancing its brand presence, with a robust pipeline of new store locations [8][24] - The company is exploring M&A opportunities, particularly in light of the retail shakeout in the cannabis industry, with discussions ongoing regarding potential acquisitions [8][56] - High Tide's strategy includes leveraging relationships with licensed producers to enhance procurement and operational efficiencies, particularly in the German medical cannabis market through the acquisition of Remaxion [16][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, particularly in the German market, despite short-term challenges related to inventory and supply chain issues [16][22] - The company remains confident in its ability to outperform competitors and capitalize on market opportunities, especially as weaker operators exit the market [14][54] - Management highlighted the importance of the Cabana Club loyalty program, which has seen significant growth, contributing to customer retention and brand loyalty [10][47] Other Important Information - High Tide generated CAD 12 million in free cash flow for the fiscal year, meeting its goal of remaining positive [9][32] - The company has a strong balance sheet with total debt of CAD 65.5 million and CAD 47.9 million in cash and cash equivalents [32] - An impairment of CAD 23.6 million was recorded for the e-commerce segment, reflecting challenges faced in that area [29] Q&A Session Summary Question: Impact of inventory issues in Germany on Q1 results - Management acknowledged that inventory issues in Portugal would impact Q1 results but expressed optimism for recovery in subsequent quarters [36][38] Question: Brick-and-mortar business margins - Management confirmed that brick-and-mortar margins have increased for four consecutive quarters, driven by strong sales and operational efficiencies [41][46] Question: M&A environment and competitor exit - Management noted that smaller competitors are exiting the market, creating opportunities for potential acquisitions, and expressed confidence in High Tide's growth strategy [55][56] Question: Budtender training and engagement - Management emphasized the importance of budtender training and engagement to enhance customer experience and brand loyalty [64][66] Question: Remaxion's performance and future prospects - Management reported improved performance in January and expressed confidence in achieving higher gross margins as new biomass is procured [67][70]

Financial Data and Key Metrics Changes - High Tide reported record revenue of CAD 164 million for Q4, representing a 19% year-over-year increase and a 10% sequential increase [6][28] - The annual revenue run rate exceeded CAD 650 million, with record Adjusted EBITDA of CAD 12.4 million, marking a 51% year-over-year growth [6][30] - Consolidated gross margins were 26% in Q4, consistent with the previous year, while Adjusted EBITDA margins reached a new record of 9.4% [29][30] Business Line Data and Key Metrics Changes - The brick-and-mortar segment led revenue growth, achieving a 15% year-over-year increase, driven by same-store sales growth of 5.5% [6][28] - Cabanalytics, the business data and insight platform, generated CAD 13.1 million in Q4, up 20% year-over-year [28] - The adjusted EBITDA for the brick-and-mortar segment was CAD 14.1 million, highlighting strong cost controls and operational efficiency [30] Market Data and Key Metrics Changes - Canna Cabana's market share in the five provinces increased to 12%, up from 11% a year ago, while total industry sales in these provinces grew by only 4% [11][12] - The average Canna Cabana store had an annual revenue run rate of CAD 2.6 million, significantly higher than the peer average of CAD 1.2 million [11] - The company added 27 stores in 2025, with plans to add another 20-30 stores in 2026, indicating a robust growth strategy [7][8] Company Strategy and Development Direction - High Tide is focused on organic growth, with a strong emphasis on high-quality locations for new stores [8] - The company is exploring M&A opportunities, particularly in the German medical cannabis market, following the acquisition of a majority stake in Remaxion [17][19] - The strategy includes leveraging relationships with licensed producers to procure cannabis at lower costs, enhancing operational efficiency [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, particularly in the German market, despite short-term challenges related to inventory [41][43] - The company is confident in its ability to navigate competitive pressures in Canada, with a strong brand and customer loyalty driving same-store sales growth [56][57] - Management highlighted the potential for significant growth in the U.S. market following regulatory changes, while remaining cautious about entering partnerships [78][79] Other Important Information - High Tide generated CAD 12 million of Free Cash Flow for the fiscal year, meeting its goal of remaining positive [35] - The company has a strong balance sheet with total debt of CAD 65.5 million and CAD 47.9 million in cash and cash equivalents [35] - The integration of Remaxion is progressing well, with expectations for improved financial contributions in the future [20][22] Q&A Session Summary Question: Impact of inventory issues in Germany on Q1 results - Management acknowledged that the Portugal inventory issue impacted Q4 results and will continue to affect Q1, but expressed optimism for recovery in subsequent quarters [39][41] Question: Brick-and-mortar business margins and growth - Management confirmed that brick-and-mortar margins have increased for four consecutive quarters, driven by strong sales and operational efficiencies [44][46] Question: Competition and M&A environment - Management noted that smaller competitors are exiting the market, creating opportunities for M&A, and expressed confidence in High Tide's growth prospects [59][60] Question: Budtender training and engagement - Management emphasized the importance of budtender training and engagement to enhance customer experience and brand loyalty [66][69] Question: Strategic partnerships in the U.S. market - Management indicated that while there is interest from U.S. operators, they are proceeding cautiously and evaluating potential partnerships as regulations evolve [78][79]

Financial Data and Key Metrics Changes - The preliminary results of the voting indicated that the compensation of the named executive officer was approved on an advisory basis [12] - The appointment of MaloneBailey, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2026, was ratified [13] Business Line Data and Key Metrics Changes - No specific financial data or key metrics related to business lines were provided in the meeting [2][3] Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting [2][3] Company Strategy and Development Direction - The company is focused on good corporate practices, as evidenced by the advisory vote on executive compensation and the ratification of the auditor's appointment [10][11] Management Comments on Operating Environment and Future Outlook - Management noted that forward-looking statements regarding future events or financial performance involve risks and uncertainties, and actual results could differ materially from predictions [14] Other Important Information - The meeting was held virtually, and all necessary procedures for voting and quorum were followed [5][6] - The company emphasized the importance of investor sentiment regarding executive compensation [9][10] Q&A Session Summary - No questions were submitted by stockholders during the Q&A session, leading to the conclusion of the meeting [15]

Financial Data and Key Metrics Changes - Assets under management (AUM) reached a record $144.5 billion, up 5% from Q3 and over 30% year-over-year [5] - Adjusted revenues for Q4 were $147.4 million, a 17% increase from Q3 and approximately 33% year-over-year [8] - Adjusted net income for the quarter was $41.2 million, or $0.29 per share, reflecting strong performance [9] Business Line Data and Key Metrics Changes - European-listed products saw AUM increase from $30.7 billion to $53.3 billion, supported by over $6 billion of net inflows [6] - U.S. AUM increased to a record $88.5 billion, with $1.4 billion of net inflows driven by U.S. equity offerings [7] - Digital assets platform AUM reached approximately $770 million, reflecting strong inflows into the digital money market fund [7] Market Data and Key Metrics Changes - Global AUM today stands at $160.8 billion, up $16 billion or 11% from year-end, driven by favorable market conditions and almost $2 billion of net inflows [8] - European inflows were led by $4.3 billion into the UCITS franchise, with commodity products generating approximately $1 billion of inflows [6] Company Strategy and Development Direction - The company aims to continue delivering differentiated products and has launched over 30 new strategies across various asset classes [17] - Focus remains on expanding the digital assets platform and private markets, with the Ceres acquisition enhancing revenue streams [19] - The company is positioned to capture growth in metals and thematic investments, reflecting a multi-year growth story [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve financial and business goals despite macroeconomic volatility [3] - The company anticipates continued organic growth and margin expansion, with a focus on maintaining expense discipline [15] - Management highlighted the importance of diversification across asset classes and geographies for resilience and growth [22] Other Important Information - The company expects a compensation to revenue ratio of 26%-28% for 2026, reflecting planned hires and compensation adjustments [10] - Discretionary spending guidance is forecasted to range from $80 million-$86 million, driven by marketing and sales-related expenses [11] Q&A Session Summary Question: What are the biggest opportunities for WisdomTree in 2026 and 2027? - Management highlighted strong growth in thematic investments, particularly in Europe, and the potential for market share gains in commodities [25][26] Question: What are the major categories for discretionary spending? - Discretionary spending is largely driven by marketing and sales-related expenses to accelerate growth initiatives [32] Question: Can you discuss the digital asset strategy and user types? - The digital asset strategy focuses on serving clients already familiar with digital assets, with various use cases including treasury management and collateral instruments [52][63] Question: What lessons have been learned from the Ceres acquisition? - The integration of Ceres has gone smoothly, confirming the strategic fit and potential for synergies in distribution and product offerings [60][62]

Financial Data and Key Metrics Changes - The company reported record long-term inflows of $118.6 billion, up 40% from the prior quarter and 22% from the prior year quarter [7] - Assets under management (AUM) ended the quarter at $1.68 trillion, reflecting an increase due to long-term net inflows and the acquisition of Apera [8] - Adjusted Operating Income was $437.3 million, influenced by lower performance fees and higher average AUM [19] Business Line Data and Key Metrics Changes - Long-term net inflows were $28 billion, with record AUM and positive net flows across equity, multi-asset, and alternative strategies [8] - Public markets generated positive net flows totaling $30.4 billion, with equity net inflows of $19.8 billion for the quarter [9] - Private markets saw $10.8 billion raised during the quarter, including $9.5 billion in private market assets [10] Market Data and Key Metrics Changes - The institutional pipeline of long, but unfunded mandates remains strong at $20.4 billion, indicating sustained demand for investment capabilities [9] - The ETF platform reached a new high with $58 billion in AUM, generating $7.5 billion in net flows, marking its 17th consecutive positive quarter [15] - Digital assets AUM is $1.8 billion, including approximately $900 million in tokenized funds and approximately $800 million in crypto ETFs [17] Company Strategy and Development Direction - The company is focused on delivering integrated solutions and long-term strategic relationships, aligning with client needs for resilience in portfolios [4][6] - M&A activities are aimed at filling product gaps and enhancing distribution capabilities, with a focus on alternatives and high net worth segments [36][37] - The company is leveraging advancements in technology, including AI and blockchain, to enhance operational efficiency and client offerings [17][88] Management's Comments on Operating Environment and Future Outlook - Management noted significant market turbulence and economic uncertainty, emphasizing the need for resilience in investment portfolios [4] - The company is confident in its diversified business model and global scale to capture long-term trends reshaping the industry [20] - Management highlighted the importance of AI in driving efficiency and potential consolidation in the asset management industry [76][80] Other Important Information - The company has been recognized as one of the best places to work in money management, reflecting its commitment to employee engagement [20] - The firm is actively expanding its private credit platform and has seen strong momentum in fundraising across various asset classes [11][13] Q&A Session Summary Question: Cost Flexibility and Savings - Management indicated that expenses are expected to be in line with 2025, with a focus on achieving $200 million in cost savings [22][23] Question: M&A Activity and Contingent Liabilities - Management confirmed that contingent consideration related to recent transactions is minimal, with no significant liabilities expected [26][27] Question: Long-term Margin Expectations - Management projected operating margins to exceed 30% by fiscal 2027, with ongoing efforts to streamline operations and integrate acquisitions [46][47] Question: AI's Impact on Consolidation - Management discussed how AI could drive consolidation in the asset management industry, emphasizing the need for scale to compete effectively [76][78] Question: Blockchain and Tokenization Strategy - Management highlighted the efficiency of blockchain technology and its potential to reduce operational costs significantly, while also discussing the hurdles to broader adoption [86][88]