Financial Data and Key Metrics Changes - In Q4 2025, WaterBridge achieved record revenue of $208.9 million, a 2% increase compared to the pro forma Q3 revenue [14] - Full year 2025 pro forma revenues reached $790 million, representing a 19% annual increase compared to pro forma 2024 revenues [5][14] - Full-year adjusted EBITDA was $402.8 million, a 16% year-over-year increase [15] - The company reported a full-year net loss of $58.1 million [15] Business Line Data and Key Metrics Changes - Produced water volumes in Q4 2025 increased to 2.6 million barrels per day, with full year combined volumes averaging 2.4 million barrels per day, reflecting a 15% year-over-year growth [5][10] - The Kraken project was brought online, contributing an initial capacity of approximately 450,000 barrels per day [11] - The Speedway Phase 1 project was oversubscribed, with expectations for significant volume growth in 2026 and beyond [12] Market Data and Key Metrics Changes - WaterBridge's produced water handling capacity exceeds 5 million barrels per day across over 2,600 miles of integrated pipeline [6] - The company has experienced a compound annual growth rate (CAGR) of over 22% in produced water handling volumes since 2022 [7] - Rates for produced water takeaway are increasing due to rising demand, with new contracts expected to drive higher unit-level revenue [58] Company Strategy and Development Direction - WaterBridge aims to continue its operational and commercial momentum in 2026, focusing on high-return organic growth projects and expanding its water infrastructure network [8][16] - The company is committed to maintaining a conservative balance sheet while exploring selective strategic acquisitions [16][39] - Future growth is anticipated from the Speedway Phase II project and potential Phase III developments, driven by increasing demand for water solutions [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position entering 2026, highlighting strong commercial momentum and opportunities for growth [14][18] - The current macro environment is viewed as more favorable than when the 2026 guidance was set, suggesting potential upside in produced water handling volumes [25][46] - Management noted that the merger between Devon and Coterra could present incremental growth opportunities for WaterBridge [27][29] Other Important Information - The company ended 2025 with total liquidity of $527 million, including $52 million in cash and cash equivalents [15] - Capital expenditures in Q4 2025 were $89.2 million, primarily for the development of Speedway Phase 1 [16] - An inaugural quarterly dividend of $0.05 per share was declared [16] Q&A Session Summary Question: 2026 produced water handling volumes guidance - Management acknowledged that the guidance reflects a conservative approach based on previous producer feedback when oil prices were lower, but noted potential for upside in the latter half of 2026 [25][26] Question: Opportunities from the Devon and Coterra merger - Management expressed excitement about the merger and the potential for growth opportunities, particularly with the Devon team [27][29] Question: Acceleration of growth project opportunities - Management confirmed that several commercial projects are firmed up and will serve as the foundation for Speedway Phase II, with additional capital allocated for these projects [35][36] Question: Capital allocation philosophy post-growth project spend - Management emphasized prioritizing high-return organic growth projects while remaining open to M&A opportunities, maintaining a healthy balance sheet, and considering dividends and buybacks in the future [39][40] Question: Capacity to handle more produced water volumes - Management indicated that the company could exceed the peak of 2.9 million barrels per day, highlighting the importance of having infrastructure in place to accommodate larger multi-well pads [65][66]

Financial Data and Key Metrics Changes - For the full year 2025, adjusted EBITDA was $90.2 million, flat compared to 2024, despite a 28% increase in production [4][13] - Revenue for Q4 was $99.8 million, up from $80 million in the same period last year, driven by increased production and recognition of tax credits [13] - D3 pricing declined by approximately $0.70, equating to a $33 million impact on adjusted EBITDA, with the average realized RIN price at $2.45 in 2025 compared to $3.13 in 2024 [13][14] Business Line Data and Key Metrics Changes - RNG production reached 4.9 million MMBtu in 2025, representing a 28% year-over-year growth, with Q4 production exceeding 1.3 million MMBtu, up approximately 24% from Q4 2024 [14] - The Fuel Station Services segment's EBITDA increased to $46.7 million in 2025, a 22% increase from $38.4 million in 2024 [14][15] Market Data and Key Metrics Changes - The trucking and logistics sector experienced macro softness in 2025, but market fundamentals have stabilized entering 2026, leading to a re-engagement by fleets on deferred truck purchases [10][11] - CNG and RNG currently fuel only 2% of the heavy-duty trucking market, indicating significant growth potential [11] Company Strategy and Development Direction - The company aims to improve RNG production through enhanced operations and efficiencies, with expectations for growth in 2026 driven by existing assets [5][10] - A new $180 million preferred stock facility will support incremental infrastructure investments across the RNG value chain [7] - The company is focusing on expanding its Fuel Station Services platform to support RNG and CNG fueling infrastructure for heavy-duty trucking fleets [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved macro conditions and potential growth in fleet adoption of CNG and RNG in heavy-duty trucking [5][10] - The company anticipates a challenging start to 2026 due to adverse weather conditions impacting production [70][72] - Management highlighted the importance of capital allocation and maintaining a strong balance sheet while pursuing growth opportunities [26][44] Other Important Information - The company ended 2025 with $184 million in total liquidity, including $30 million in cash and short-term investments [15][16] - Capital expenditures for 2025 were approximately $90 million, primarily related to new RNG facilities and OPAL-owned fueling stations [16] Q&A Session Summary Question: Liquidity and growth outlook beyond current projects - Management indicated a liquidity position of about $160 million available for projects in construction and expressed excitement about allocating more capital to the Fuel Station Services business [24][25] Question: Inlet utilization levels and future expectations - Management reported increased inlet utilization levels and expects to achieve 85%-86% utilization, driven by operational improvements and gas growth [30][31] Question: Specific operational changes for improvement - Management emphasized a focus on improving gas quality and training across the platform to enhance operational efficiency [36][38] Question: Relationship with NextEra - Management confirmed a strong ongoing partnership with NextEra, which remains a 50% owner in certain projects and continues to collaborate on environmental credits [40] Question: MMBtu capacity goals for 2026 - Management acknowledged a strong pipeline of new project opportunities and indicated that capital allocation would be judicious across various segments [43][44] Question: Growth guidance for Fuel Station Services in 2026 - Management anticipates lower growth levels in Fuel Station Services for 2026 but sees potential for margin expansion as more fueling stations are owned [52][54]

Financial Data and Key Metrics Changes - Revenues increased by 69% year-over-year, reaching $296 million, with a year-over-year increase of $121 million [12][13] - Adjusted EBITDA rose by 51% to $60 million, resulting in an adjusted EBITDA margin of 20.4% [12][14] - Adjusted net income increased by 66% [12] Business Line Data and Key Metrics Changes - Custom products grew by 59% to $235 million, representing 79% of total revenues [13] - Powertrain solutions more than tripled to $46 million, accounting for 16% of revenues [13] - Standard products and services grew by 13% and 5%, respectively, representing 3% and 2% of revenues [13] Market Data and Key Metrics Changes - Approximately 85% of revenue comes from three end markets: data centers, grid, and industrial [9] - Orders increased by 268% in Q2, particularly strong in data center and grid markets [17][21] - Book-to-bill ratio was 2.6, indicating strong demand acceleration [22] Company Strategy and Development Direction - The company focuses on high-value applications in technically demanding segments, such as data centers and battery energy storage projects [5][9] - Emphasis on customization, with 90% of revenue from engineer-to-order products, allowing for higher margins [10] - Plans to expand manufacturing capacity to support up to $5 billion in revenue [28][65] Management's Comments on Operating Environment and Future Outlook - Management noted that demand is exceeding expectations, with a strong pipeline for future orders [17][19] - Anticipated sequential margin expansion in Q3 and Q4 as productivity improves [18][30] - The company expects to generate strong operating and free cash flow starting in 2027 as capital expenditures decrease [77] Other Important Information - The company has a $1.5 billion backlog, which is expected to provide excellent visibility through fiscal year-end and into fiscal 2027 [32] - Significant investments in capacity expansion are underway, with $132 million spent out of a $205 million program [28] Q&A Session Summary Question: Backlog expansion expectations for Q3 - Management indicated that while Q3 order rates may not match Q2, there is meaningful order conversion and a growing pipeline [40] Question: Sequential margin improvement in the second half - Management expects incremental margins and strong SG&A leverage, with a significant portion of second-half EBITDA anticipated in Q4 [45] Question: Challenges in finding skilled labor - Management reported success in recruitment and onboarding, with plans to continue hiring as revenue scales up [48] Question: Exit rate on EBITDA in Q4 and revenue recognition - Management is confident in maintaining EBITDA margins above 25% and noted an increasing percentage of completion for larger projects [56] Question: Annualizing trends into 2027 - Management believes FY 2027 will be a solid year, with continued growth and margin expansion expected [62] Question: Revenue capacity as the year ends - The company will be materially complete with its capital expansion program, supporting up to $5 billion in revenue [65] Question: Lead times and industry movement - Management stated that lead times remain consistent, with the company delivering within market expectations [71] Question: Customer project timing and backlog conversion - Most backlog is expected to convert in FY 2026 and FY 2027, with a consistent turnover rate [75] Question: Operating cash flow generation - Positive operating cash flow is expected in the second half of the year, with strong cash flow anticipated starting in 2027 [77]

Financial Data and Key Metrics Changes - Revenues increased by 69% year-over-year, reaching $296 million, with a year-over-year increase of $121 million [11][12] - Adjusted EBITDA rose by 51% to $60 million, with an adjusted EBITDA margin of 20.4% [11][13] - Adjusted net income increased by 66% [11] Business Line Data and Key Metrics Changes - Custom products grew by 59% to $235 million, representing 79% of total revenues [12] - Powertrain solutions more than tripled to $46 million, accounting for 16% of revenues [12] - Standard products and services grew by 13% and 5%, respectively, representing 3% and 2% of revenues [12] Market Data and Key Metrics Changes - Orders increased by 268% in Q2, particularly strong in data centers and grid markets [16][19] - Book-to-bill ratio was 2.6, indicating strong demand acceleration [20] - Backlog reached $1.5 billion, twice last year's level and 45% higher than the end of September [20] Company Strategy and Development Direction - Focus on high-value applications in data centers, grid modernization, and industrial electrification [5][8] - Emphasis on customization, with 90% of revenue from engineer-to-order products [9] - Plans to expand manufacturing capacity to support up to $5 billion in revenue [25][61] Management's Comments on Operating Environment and Future Outlook - Demand is exceeding expectations, with significant growth in infrastructure investment [16][18] - Anticipated sequential margin expansion in Q3 and Q4 as productivity improves [15][17] - Strong visibility into future revenues due to a substantial backlog [27][28] Other Important Information - Company is investing in capacity expansion and hiring to meet demand, which may temporarily impact margins [25][26] - Adjusted EBITDA and adjusted net income are expected to more than double in the second half of the fiscal year [27][29] Q&A Session Summary Question: Backlog expansion expectations for Q3 - Management indicated that while Q3 order rates may not match Q2, there is meaningful order conversion and a growing pipeline [34][35] Question: Sequential margin improvement in the second half - Management expects sequential margin increases from Q2 to Q3 and Q3 to Q4, with a significant portion of EBITDA expected in Q4 [38][40] Question: Challenges in finding skilled labor - Management reported success in recruiting and retaining skilled labor, with plans to continue hiring as revenue scales up [42][43] Question: Exit rate on EBITDA in Q4 and revenue recognition - Management is focused on delivering strong results for 2026, with expectations of maintaining EBITDA margins above 25% [51][52] Question: Annualizing trends into 2027 - Management believes FY 2027 will be a solid year, with continued growth and margin expansion expected [57][58] Question: Revenue capacity as the year ends - Management confirmed that the capital expansion program will support up to $5 billion in revenue, with continued labor additions as revenue scales [60][61] Question: Lead times and industry movement - Management noted that lead times remain consistent, with no significant changes in the market [64][66] Question: Customer project timing and backlog conversion - Management indicated that most backlog is expected to convert into revenue within FY 2026 and FY 2027 [71][72] Question: Operating cash flow generation - Management expects positive operating cash flow in the second half of the year, with strong cash flow generation anticipated starting in 2027 [73]

Financial Data and Key Metrics Changes - For the full year 2025, adjusted EBITDA was $90.2 million, flat compared to 2024, despite a 28% increase in production [4][13] - Revenue for Q4 was $99.8 million, up from $80 million in the same period last year, driven by increased production and recognition of tax credits [13] - D3 pricing declined by approximately $0.70, equating to a $33 million impact on adjusted EBITDA, with the average realized RIN price at $2.45 in 2025 compared to $3.13 in 2024 [13][14] Business Line Data and Key Metrics Changes - RNG production reached 4.9 million MMBtu in 2025, representing a 28% year-over-year growth, with Q4 production exceeding 1.3 million MMBtu, up approximately 24% from Q4 2024 [14] - The Fuel Station Services segment's EBITDA increased to $46.7 million in 2025, a 22% increase from $38.4 million in 2024 [14][15] Market Data and Key Metrics Changes - The trucking and logistics sector experienced macro softness in 2025, but market fundamentals have stabilized and improved entering 2026 [10] - CNG and RNG currently fuel only 2% of the heavy-duty trucking market, indicating significant growth potential [11] Company Strategy and Development Direction - The company aims to improve RNG production through enhanced operations and efficiencies, with expectations for growth in 2026 driven by existing assets [5][10] - OPAL Fuels is focusing on expanding its Fuel Station Services platform to support RNG and CNG fueling infrastructure for heavy-duty trucking fleets [10][11] - The company has secured a $180 million preferred stock facility to fund infrastructure investments across the RNG value chain [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved macro conditions and potential growth in fleet adoption of CNG and RNG in heavy-duty trucking [5][10] - The company anticipates a challenging start to 2026 due to adverse weather conditions impacting production [70][72] - Management highlighted the importance of capital allocation and maintaining a strong balance sheet while pursuing growth opportunities [26][44] Other Important Information - The company ended 2025 with $184 million in total liquidity, including $30 million in cash and short-term investments [15][16] - Capital expenditures for 2025 were approximately $90 million, with $16 million spent in Q4 primarily on new RNG facilities and fueling stations [16] Q&A Session Summary Question: Liquidity and growth outlook beyond current projects - Management indicated approximately $160 million in liquidity available for ongoing projects and expressed excitement about future capital allocation to Fuel Station Services [24][25] Question: Inlet utilization levels and drivers - Management reported increased inlet utilization levels, with expectations to achieve 85%-86% utilization through operational improvements [30][31] Question: Specific changes to improve operations - Management emphasized a focus on improving gas quality and operational training to enhance output from existing projects [36][38] Question: Relationship with NextEra - Management confirmed a strong ongoing partnership with NextEra, maintaining collaboration on environmental credits and project ownership [40] Question: MMBtu capacity goals for 2026 - Management acknowledged a strong pipeline of new project opportunities and indicated continued investment in production assets [43][44] Question: CapEx breakdown for 2026 - Management noted that the majority of the $154 million CapEx would be allocated to RNG projects, with some investment in downstream dispensing stations [48] Question: Growth expectations for Fuel Station Services in 2026 - Management anticipates lower growth levels in Fuel Station Services for 2026 but sees potential for margin expansion as more stations are owned [52][54]

Financial Data and Key Metrics Changes - For the full year 2025, adjusted EBITDA was $90.2 million, flat compared to 2024, despite a 28% increase in production [4][15] - Revenue for Q4 2025 was $99.8 million, up from $80 million in Q4 2024, with adjusted EBITDA increasing to $34.2 million from $22.6 million in the same period last year [15] - D3 pricing declined by approximately $0.70, equating to a $33 million impact on adjusted EBITDA, with the average realized RIN price at $2.45 in 2025 compared to $3.13 in 2024 [15][19] Business Line Data and Key Metrics Changes - RNG production reached 4.9 million MMBtu in 2025, representing a 28% year-over-year growth, with Q4 production exceeding 1.3 million MMBtu, up approximately 24% from Q4 2024 [16] - The Fuel Station Services segment's EBITDA increased to $46.7 million in 2025, a 22% increase from $38.4 million in 2024 [16][17] Market Data and Key Metrics Changes - The trucking and logistics sector experienced macro softness in 2025, but market fundamentals have stabilized and improved entering 2026, leading to a re-engagement by fleets on deferred truck purchases [11][12] - CNG and RNG currently fuel only 2% of the heavy-duty trucking market, indicating significant growth potential [12] Company Strategy and Development Direction - The company aims to improve RNG production through enhanced operations and efficiencies, with expectations for incremental production growth from existing assets in 2026 [5][19] - The company is focusing on expanding its Fuel Station Services platform to support RNG and CNG fueling infrastructure for heavy-duty trucking fleets, with plans to allocate more capital to this segment [11][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the 2026 outlook, citing improved operations and macro conditions that could lead to stronger growth in the Fuel Station Services segment [5][6] - The company anticipates a challenging start to 2026 due to adverse weather conditions but remains focused on disciplined execution of strategic growth objectives [19][75] Other Important Information - The company successfully completed a $180 million Series A preferred facility, enhancing its liquidity position [9][14] - Capital expenditures for 2025 were approximately $90 million, with a focus on new RNG facilities and OPAL-owned fueling stations [18] Q&A Session Summary Question: Liquidity and growth outlook beyond current projects - Management indicated a liquidity position of about $160 million available for projects in construction, with a focus on capital allocation to both RNG production and Fuel Station Services [26][27] Question: Inlet utilization levels and future expectations - Management reported an increase in inlet utilization levels, with expectations to achieve 85%-86% utilization in the future [31][33] Question: Specific changes to improve operations and asset utilization - Management emphasized a focus on improving operational efficiencies and quality of gas input to enhance output [38][39] Question: Relationship with NextEra - Management confirmed a strong ongoing partnership with NextEra, with no significant changes expected in their collaboration [43] Question: MMBtu capacity goals for 2026 - Management highlighted a strong pipeline of new project opportunities and a commitment to invest in both RNG production and Fuel Station Services [46][47] Question: Growth expectations for Fuel Station Services in 2026 - Management anticipates a more pivoting year for Fuel Station Services, with growth expected to materialize more significantly in 2027 [75]

Financial Data and Key Metrics Changes - Revenues increased by 69% year-over-year, reaching $296 million, with a year-over-year increase of $121 million [11][12] - Adjusted EBITDA rose by 51% to $60 million, resulting in an adjusted EBITDA margin of 20.4% [11][13] - Adjusted net income increased by 66% [11] Business Line Data and Key Metrics Changes - Custom products grew by 59% to $235 million, accounting for 79% of total revenues [12] - Powertrain solutions more than tripled to $46 million, representing 16% of revenues [12] - Standard products and services grew by 13% and 5%, respectively, contributing 3% and 2% to total revenues [12] Market Data and Key Metrics Changes - Orders increased by 268% in Q2, with significant demand from data centers and grid markets [16][19] - The book-to-bill ratio was 2.6, indicating strong demand acceleration [20] - Backlog reached $1.5 billion, twice the level from the previous year [20] Company Strategy and Development Direction - The company focuses on technically demanding segments such as data centers, semiconductor fabs, and battery energy storage projects [5][7] - Emphasis on customization, with 90% of revenue coming from engineer-to-order products, allowing for higher margins [9] - Plans to expand manufacturing capacity to support up to $5 billion in revenue [25][62] Management's Comments on Operating Environment and Future Outlook - Management noted that demand is exceeding expectations, with a strong pipeline for future orders [16] - Anticipated sequential margin expansion in Q3 and Q4 as productivity improves [14][17] - The company expects revenues for the second half of the year to range between $695 million and $745 million, with adjusted EBITDA projected at $175 million to $185 million [27] Other Important Information - The company has invested in capacity expansion across multiple campuses, with $132 million spent out of a $205 million program [25] - Manufacturing headcount increased by 80% year-over-year to meet demand [26] - The company is focused on delivering custom products at scale with short lead times, enhancing competitive advantage [21][67] Q&A Session Summary Question: Expectations for backlog expansion in Q3 - Management indicated that while Q3 order rates may not match Q2, there is meaningful order conversion and a growing pipeline [35] Question: Sequential margin improvement in the second half - Management expects incremental volumes and strong SG&A leverage to drive sequential margin increases from Q2 to Q3 and Q4 [39] Question: Challenges in finding skilled labor - Management reported success in recruiting and retaining skilled labor, with plans to continue hiring as revenue scales up [44] Question: Exit rate on EBITDA in Q4 and revenue recognition - Management is confident in maintaining EBITDA margins above 25% and noted an increasing percentage of completion for larger projects [51][52] Question: Annualizing trends into 2027 - Management believes FY 2027 will be a solid year, with continued growth and margin expansion expected [58] Question: Revenue capacity as the company exits the year - Management confirmed that the capital expansion program will support up to $5 billion in revenue, with labor additions continuing to scale with growth [62] Question: Lead times and industry movement - Management stated that lead times remain competitive and consistent, with no significant changes observed in the market [67]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $1.75 billion, representing an organic contraction of approximately 6% due to a $60 million reduction from the low margin Cloud One program and a $45 million headwind from a non-recurring software license sale in the prior year [28] - Full year revenue was $7.26 billion, declining approximately 3% organically, primarily due to the decision to no bid low margin Cloud One revenue, which was a $200 million headwind for the year [28] - Adjusted EBITDA for the fourth quarter was $181 million, resulting in a margin of 10.3%, contributing to a full year margin of 9.7%, which is roughly 20 basis points ahead of guidance [29] - Free cash flow was $336 million in the quarter and $577 million for the full year, demonstrating strong execution and resilience of the business model [30] Business Line Data and Key Metrics Changes - The company is focusing on higher margin programs and has seen improved performance in its civilian enterprise IT portfolio, which has driven stronger performance and elevated win rates [19] - The large enterprise IT market is expected to shrink from 17% of company revenues in fiscal year 2025 to an expected 10% in fiscal year 2027 [20] Market Data and Key Metrics Changes - The company expects total revenue in fiscal year 2027 to be in the range of $7 to $7.2 billion, representing an organic contraction of 2% to 4% due to recompete losses [34] - The guidance for adjusted EBITDA in fiscal year 2027 is in the range of $705 to $715 million, reflecting margins between 9.9% to 10.1% [35] Company Strategy and Development Direction - The company is committed to aligning and focusing its portfolio, improving internal processes, and enhancing external results [10] - A new chief growth officer has been hired to prioritize business development and drive higher win rates for recompetes and new business [12] - The company is focusing on areas where it has a greater right to win and higher rates of customer retention, aiming for $25 to $28 billion of submissions in fiscal year 2027 [13] Management's Comments on Operating Environment and Future Outlook - Management noted that fourth quarter revenue was below expectations due to procurement delays and customer disruptions, but expressed optimism about margin performance with a fiscal year 2026 margin of 9.7% [16] - The company expects another year of organic contraction in fiscal year 2027, largely due to recompete losses in the large enterprise IT market [17] - Management emphasized the importance of mission expertise and customer intimacy, stating that the industry must continue to invest and innovate to deliver capabilities and capacity [11] Other Important Information - The company is undergoing a multi-year enterprise transformation initiative to unlock significant value and eliminate outdated business processes [36] - The company is actively engaging with customers to pilot and implement AI-powered agents to stabilize and secure critical networks [20] Q&A Session Summary Question: What is the single most significant portfolio pivot required to align the company with the next 10 years of government budget priorities? - Management indicated the need to focus on areas where the company has the right to win and where customer retention rewards innovation and strong performance [46] Question: Thoughts on fiscal year 2027 guidance and CapEx? - Management stated that the CapEx is adequate to meet current demand signals and emphasized flexibility in the business model to ramp up production as needed [57][60] Question: How long does it take to build momentum in business development and convert that to revenue? - Management noted that while the sales cycle can be long, improvements in win rates on existing proposals could be seen within six months [71] Question: What has changed in enterprise IT work and how does the company plan to get on the offensive? - Management explained that customers are increasingly looking for more standardized solutions, making it harder to differentiate, and the company is focusing on mission IT work where it can excel [85][88]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $116 million, down from $136.8 million in Q4 2024, primarily due to new state regulations and compliance standards [9][10] - Full year revenue increased by 7% to $615 million, driven by kiosk expansion and growth in median transaction size [10] - Gross profit for Q4 2025 was $15.3 million, compared to $23.5 million in Q4 2024, with a gross margin of 13.2% [10][11] - GAAP net loss for Q4 2025 was $24.9 million, compared to a net income of $5.4 million in Q4 2024 [11] - Adjusted EBITDA for Q4 was $1.6 million, down from $13 million in the prior year, while full year adjusted EBITDA increased by 42% to $56.4 million [12] Business Line Data and Key Metrics Changes - The number of installed kiosks at the end of 2025 was 9,721, up 15% from the end of 2024 [10] - Median transaction size grew to $400, an increase of 43% from the end of 2024 [10] - The company completed the transition of assets from National Bitcoin ATM, adding over 500 kiosks to its network [5] Market Data and Key Metrics Changes - The company ended Q4 with approximately 9,700 active machines, reflecting both organic growth and targeted acquisitions [4] - The company expects continued regulatory activity at the state level in 2026, which may introduce additional transaction limits [7] Company Strategy and Development Direction - The company is diversifying beyond Bitcoin ATMs by leveraging its payment infrastructure and compliance capabilities, with recent acquisitions including a peer-to-peer social betting platform and a business advance platform [8] - The company aims to adapt to regulatory changes while focusing on cost containment and fleet optimization [15] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging year in 2026 for the core Bitcoin ATM business, expecting revenue to decline by 30%-40% year-over-year due to regulatory changes [15] - By the end of 2026, management expects 80%-90% of states to have established their regulatory stance [25] Other Important Information - Cash and cash equivalents increased to $76.6 million as of December 31, 2025, compared to $31.0 million at the end of 2024 [13] - The company completed a $15 million registered direct offering of its Class A common stock during Q4 [13] Q&A Session Summary Question: Can you unpack the 2026 revenue guidance and underlying kiosk growth assumptions? - Management indicated that revenue decline is uncertain due to potential regulatory changes, with kiosk numbers likely remaining flat or slightly down [18] Question: How will new Bitcoin ATM regulations affect the M&A landscape? - Management stated that they may be opportunistic in M&A depending on how competitors react to regulatory changes, but they are not actively seeking acquisitions [21] Question: What is the regulatory landscape expected to look like by the end of 2026? - Management believes that by the end of 2026, 80%-90% of states will have made initial regulatory decisions [25] Question: How do current regulations affect international market ambitions? - Management confirmed ongoing efforts in international expansion, with hopes for successful launches in new countries despite varying regulatory environments [26]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $116 million, down from $136.8 million in Q4 2024, primarily due to new state regulations and compliance standards [9][10] - Full year revenue increased by 7% to $615 million, driven by kiosk expansion and growth in median transaction size [10] - Gross profit for Q4 2025 was $15.3 million, compared to $23.5 million in Q4 2024, with a gross margin of 13.2% [10][11] - GAAP net loss for Q4 2025 was $24.9 million, compared to a net income of $5.4 million in Q4 2024 [11] - Adjusted EBITDA for Q4 was $1.6 million, down from $13 million in the prior year, while full year adjusted EBITDA increased by 42% to $56.4 million [12] Business Line Data and Key Metrics Changes - The number of installed kiosks at the end of 2025 was 9,721, up 15% from the end of 2024 [10] - Median transaction size grew to $400, up 43% from the end of 2024 [10] - The company completed the transition of assets from National Bitcoin ATM, adding over 500 kiosks to its network [5] Market Data and Key Metrics Changes - The company ended Q4 with approximately 9,700 active machines, reflecting both organic growth and targeted acquisitions [4] - The company expects continued regulatory activity at the state level in 2026, which may introduce additional transaction limits [7] Company Strategy and Development Direction - The company is diversifying beyond Bitcoin ATMs by leveraging its payment infrastructure and compliance capabilities, with recent acquisitions including a peer-to-peer social betting platform and a business advance platform [8] - The company aims to adapt to regulatory changes while focusing on cost containment and fleet optimization [15] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging year in 2026 for the core Bitcoin ATM business, expecting revenue to decline between 30%-40% year-over-year due to regulatory changes [15] - The company believes that the regulatory measures will ultimately raise industry standards and reinforce its advantages in compliance and scale [7] Other Important Information - Cash and cash equivalents increased to $76.6 million as of December 31, 2025, compared to $31.0 million at the end of 2024 [13] - The company completed a $15 million registered direct offering of its Class A common stock during Q4 [13] Q&A Session Summary Question: Can you unpack the 2026 revenue guidance and underlying kiosk growth assumptions? - Management indicated that the revenue decline is uncertain due to potential regulatory changes, with kiosk numbers likely remaining flat or slightly down [18] Question: How do you envision new Bitcoin ATM regulations changing the M&A landscape? - Management stated that they may be opportunistic in M&A depending on how competitors react to regulatory changes, but they are not actively seeking acquisitions [21] Question: What is the regulatory landscape expected to look like by the end of 2026? - Management believes that 80%-90% of states will have decided on their regulatory stance by the end of 2026, with less activity expected in 2027 [25] Question: How do regulatory actions affect views on international markets? - Management noted that international markets do not currently show similar regulatory issues as the U.S. and they are actively working on expansion in two more countries [26]