Financial Data and Key Metrics Changes - The company reported revenue of $191 million for the fiscal third quarter 2026, representing a year-over-year increase of 25.5% and a 6% increase from the prior quarter [6][22] - Non-GAAP operating margins improved by over 400 basis points year-over-year, with non-GAAP operating income of $5 million, or 2.7% of revenue, compared to a non-GAAP operating loss of $2 million in the prior year quarter [6][26] - Free cash flow for the quarter was $18 million, a significant improvement from a negative free cash flow of $14 million in the prior year quarter [6][27] Business Line Data and Key Metrics Changes - Subscription revenue accounted for 95% of total revenue, with the remaining 5% from professional services and onboarding fees [22] - The company added 106 new customers sequentially and 317 year-over-year, bringing the total customer count to 2,528, a 14% increase [6][22] - Large customers, defined as those spending at least $500,000 annually, grew by 29% year-over-year to 303, contributing 63% to total ARR [23] Market Data and Key Metrics Changes - Revenue outside the U.S. contributed 45% of total revenue, consistent with previous quarters [23] - The company achieved a dollar-based net retention rate of 108% across all customers and 110% for large customers [23][24] - The total remaining performance obligation was $891 million, up 24% year-over-year, indicating strong future revenue visibility [24] Company Strategy and Development Direction - The company aims to position itself as the global standard for omnichannel customer engagement, leveraging AI-driven solutions to enhance customer experiences [6][10] - The introduction of new AI capabilities, such as the Braze AI Decisioning Studio, is expected to drive future growth and customer engagement [19][22] - The company is focused on innovation and product development, particularly in AI, to maintain a competitive edge in the customer engagement landscape [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued market demand and strong bookings across various verticals and geographies [6] - The company anticipates a revenue range of $197.5-$198.5 million for the fourth quarter, reflecting a year-over-year growth rate of approximately 23% [28] - Management highlighted the importance of first-party data and customer engagement strategies in navigating the evolving market landscape [57] Other Important Information - The company delivered 102.5 billion messages during Cyber Week, showcasing the scalability and reliability of its platform [10] - The integration of AI into customer engagement strategies is seen as a key driver for future growth and operational efficiency [11][12] - The company is committed to maintaining a long-term profitability framework, targeting a non-GAAP operating income margin of 8% for fiscal year 2027 [29] Q&A Session Summary Question: Insights on the Braze healthcare customer using Braze Agent Console - Management highlighted the agility of deploying purpose-built agent frameworks into existing systems, enhancing customer interactions through AI [31][32] Question: Drivers of improving trends in key metrics - Management attributed improvements to ongoing productivity enhancements, effective mitigation of downsell activity, and strong sales organization performance [36] Question: Factors driving momentum in legacy replacement cycle - Management noted that the current market environment is conducive to enterprise replacement cycles, with increased awareness and differentiation for Braze [37][39] Question: Early reception of AI Decisioning Studio - Management reported strong pipeline generation and customer wins, indicating positive early traction for the AI Decisioning Studio [64]

Financial Data and Key Metrics Changes - Total revenue in Q3 2025 was $83.5 million, representing a 117% increase compared to $38 million in Q3 2024 [19][20] - Gross margins reached 70%, a 17 percentage point increase from 53% in Q3 2024 [18][20] - The company achieved positive GAAP operating margin of 11.5% in Q3 2025, marking the first quarter of positive GAAP operating income [22][23] Business Line Data and Key Metrics Changes - Prenatal revenues were $74.1 million, growing over 100% year-over-year, while oncology revenues increased 664% to $8.7 million [15][19] - Total test volume grew 51% year-over-year to 163,000 tests in Q3 2025 [12] - Average selling prices (ASVs) increased by 44% year-over-year to $501 in Q4 2025 [16] Market Data and Key Metrics Changes - The company has approximately 235 million contracted lives, indicating expanded payer coverage [16] - The oncology business is growing faster than the prenatal business, contributing significantly to revenue growth [15] Company Strategy and Development Direction - The long-term goal is to build a category-defining generational company and become a member of the S&P 500 [8] - The company plans to invest more heavily in electronic medical records (EMR) to facilitate adoption in large health systems [13][35] - The focus is on maintaining capital and operational efficiency while achieving profitability [7][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth and profitability, with expectations for positive GAAP operating income in Q4 and for the full year of 2025 [26] - The company anticipates a total revenue of $293 million to $299 million for 2025, representing a growth of 92% to 96% compared to 2024 [24][25] - Management noted that competitive product launches have not impacted business growth so far [12][50] Other Important Information - The company completed a successful IPO, raising $314 million in gross proceeds [4] - Recent publications validate the clinical utility of the company's products, enhancing credibility in the market [10][11] Q&A Session Summary Question: Future GAAP net income expectations - Management aims to continue growing profitably and expects to maintain positive GAAP net income in 2026 [28][29] Question: Timing for oncology test reimbursements - The first Medicare coverage for Northstar Response is expected before the end of 2026 [30] Question: Guidance process as a public company - The company has been operating close to a public company for the last few years and has been conservative in its projections [31][32] Question: Impact of EMR investment - Investing in EMR is expected to significantly accelerate adoption in large health systems [34][35] Question: Clinical spending compared to competitors - Management recognizes the importance of investing in clinical studies but aims to focus on studies that address specific physician needs [38] Question: Mix between monitoring and therapy selection tests - The company sees a two-to-one ratio for Response tests to Select tests, with most providers using both together [41] Question: Sales force expansion plans - The company plans to add 8 to 10 net reps per quarter for prenatal and 4 to 6 for oncology [42][43] Question: Contribution of Medicaid coverage to ASP growth - The integration of Medicaid coverage for the Unity Carrier panel is expected to have a significant long-term impact on ASPs [44] Question: Future gross margin expectations - Management expects to maintain gross margins in the high 60s% for the next several quarters [46][47] Question: MRD timelines and competitive landscape - The company plans to launch MRD tests towards the end of 2026, focusing on tumor-naive MRD [49][50]

Financial Data and Key Metrics Changes - Net sales for Q3 2026 were $47.6 million, a 4% year-over-year increase, driven by a 31% increase in fire services products [4][21] - Adjusted EBITDA, excluding FX, was $200,000, a decrease of $4.5 million, or 95%, compared to $4.7 million for the same period last year [5][24] - Adjusted gross profit as a percentage of net sales decreased to 31.3% from 41.7% in the comparable year-ago period [5][23] - The net loss for the quarter was $16 million, or $1.64 per share, compared to a net income of $100,000, or $0.01 per share, for Q3 2025 [21][22] Business Line Data and Key Metrics Changes - Fire services revenue increased by $6 million year-over-year, driven by $3.4 million in sales from the Veridian acquisition and organic growth of $3 million [22][27] - Adjusted gross profit for the fire services segment decreased due to lower sales, higher product costs, and tariffs [23][25] - Industrial demand softened across several channels, with distributors reducing inventory and certain customers deferring purchases [17][18] Market Data and Key Metrics Changes - Domestic sales were $19.2 million, representing 40% of total revenues, while international sales were $28.4 million, accounting for 60% of total revenues [22] - Sales in Latin America decreased from $5 million to $4.2 million due to political uncertainty affecting purchase decisions [28] - Sales in Asia decreased 19% year-over-year from $3.6 million to $2.9 million [28] Company Strategy and Development Direction - The company is focused on expanding its market share in the fragmented $2 billion fire protection sector and growing its industrial products business [4][7] - Strategic acquisitions of California PPE and Arizona PPE are expected to enhance the North American service segment of the global fire services market [7][8] - The company plans to navigate macroeconomic challenges while expanding top-line revenue in fire services and industrial verticals [33][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of tariff uncertainty, inflation, and supply chain costs on revenue and gross margin [9][12] - The company remains optimistic about long-term demand signals and expects headwinds to ease as it moves into calendar year 2026 [12][35] - Management has withdrawn formal guidance and is shifting to a more disciplined operating model focused on measurable execution and cash generation [11][13] Other Important Information - The company completed a $6.1 million sale and partial leaseback of its Decatur, Alabama warehouse, resulting in a gain of $4.3 million [8] - Inventory at the end of Q3 was $87.9 million, down from $90.2 million at the end of Q2 [10][31] - The company has suspended its quarterly cash dividend to reinvest profits into growth opportunities [31] Q&A Session Summary Question: What makes the $38 million fire service tenders high probability? - The company believes these tenders are high probability due to existing relationships with fire departments, competitor struggles, and being written into specifications [37] Question: What is the status of certification delays? - Certification delays are due to a backlog at certification agencies, affecting all manufacturers, with no further delays expected [44] Question: How is the company addressing pricing opportunities? - The company is implementing annual pricing increases strategically across fire and industrial segments while managing competitive pressures [46][48]

Summary of Coinbase Global Conference Call (December 09, 2025) Industry Overview - **Industry**: Cryptocurrency and Digital Assets - **Company**: Coinbase Global (NasdaqGS:COIN) Key Points and Arguments Regulatory Environment - The regulatory landscape is evolving with the introduction of the Genius Act, which has provided market rules around stablecoins, leading to increased market activity in this area [5][6] - The Clarity Act, also known as the Market Structure Act, aims to clarify asset taxonomy and delineate regulatory oversight between the SEC and CFTC, fostering innovation in the U.S. crypto market [5][6][7] - Bipartisan support for regulatory clarity is noted, with optimism for progress in early 2026 [7] Market Activity and Performance - A significant sell-off in the crypto market has been observed, with industry trading volumes down 27% quarter-to-date annualized, compared to a 25% decline in the first three quarters of the year [8][9] - Coinbase maintained operational stability during market volatility, highlighting effective risk management and robust controls [9][10] Competitive Landscape - The competitive environment for retail trading has intensified, with more fintech and traditional financial services entering the crypto space [12][13] - Despite increased competition, Coinbase remains confident in its diverse product offerings and customer trust, which are key factors for consumer choice [15][16] Revenue Diversification - Coinbase has focused on diversifying revenue streams, with non-trading revenue growing significantly from 4% of total revenue at IPO to over 50% in some quarters [17] - The company is actively expanding its subscription and services revenue, particularly in staking, lending, and digital asset treasuries [28][30] Derivatives and Product Integration - The integration of Deribit is expected to enhance Coinbase's derivatives trading capabilities, with plans to offer a unified interface for spot, futures, and options trading [20][21] - The company is optimistic about the growth potential of derivatives, particularly in the U.S. market [25] Staking and New Opportunities - Staking has become a $700 million business for Coinbase, with opportunities for further growth as new blockchains and regulatory approvals emerge [28][29] - The company is also exploring the potential of tokenized equities, although regulatory clarity is still needed [49][50] Base Layer 2 Protocol - The Base protocol aims to provide a fast, low-cost infrastructure for transactions, with over $15 billion of USDC already on the platform [33][34] - Coinbase is focused on reducing transaction fees to encourage adoption and increase volume, similar to the evolution of texting services [34][35] Future Outlook - Coinbase anticipates a transformative 2026, with expanded product offerings and continued regulatory clarity [57][58] - The integration of AI and crypto is seen as a significant opportunity for efficiency and innovation [58][59] Upcoming Developments - A product announcement event is scheduled for December 17, 2025, where Coinbase will unveil new asset categories and updates to its platform [51] Additional Important Insights - The Coinbase Card is viewed as a customer acquisition tool, offering unique Bitcoin rewards and driving engagement on the platform [45][46] - The company is committed to customer-led initiatives, aiming to list safe and legal assets while adapting to market demands [39][40] This summary encapsulates the key discussions and insights from the Coinbase Global conference call, highlighting the company's strategic direction, market dynamics, and future opportunities in the cryptocurrency space.

Summary of Affiliated Managers Group (AMG) Conference Call - December 09, 2025 Company Overview - **Company**: Affiliated Managers Group (NYSE: AMG) - **Industry**: Asset Management - **Key Focus**: Transition towards alternative investment capabilities, which now represent over 50% of EBITDA [2][4][6] Core Points and Arguments Business Evolution and Strategy - AMG has successfully pivoted towards alternative investments, with alternatives now comprising approximately 55% of EBITDA, aiming for two-thirds in the coming years [2][4][6][8] - The growth in alternatives is driven by both organic growth and strategic acquisitions, with a focus on independent firms that align with AMG's investment strategy [5][6][7] - AMG has made four new investments and one strategic partnership in alternatives this year, contributing to the growth of its affiliate base [7][8] Acquisition Strategy - AMG's acquisition strategy focuses on smaller deals, typically with an enterprise value between $250 million and $1 billion, investing 20%-60% of the economics of the business [15][16][17] - The company emphasizes maintaining the independence of its affiliates while providing strategic support, including business development and product innovation [13][14] Organic Growth - Liquid alternatives have seen a significant turnaround, with AQR being a major contributor, managing approximately $45 billion in assets [18][19][21] - AMG has observed positive flows in liquid alternatives, with total alternative flows exceeding $50 billion, two-thirds of which are from liquid alts [21][22] - AQR's tax-aware strategies are highlighted as a durable trend, addressing the needs of high-net-worth individuals and wealth advisors [22][25][26] Private Markets - AMG's private markets strategy is focused on specialized areas, with Pantheon being a key affiliate [33][34] - The company aims to leverage its scale to provide unique access to differentiated return streams in private markets [35][36] Financial Performance and Capital Allocation - AMG has reduced its share count by approximately 40% over the last five years, indicating a strong capital return strategy through share repurchases [42][44] - The company anticipates continued share repurchases, viewing its current share price as attractive [47][48] - Performance fees have averaged around $150 million annually, with potential for growth as the business evolves [51][52] Outlook for 2026 - AMG expects continued momentum in alternative flows, with higher fees and margins contributing positively to earnings [56][57] - The company is not yet ready to provide specific guidance for 2026 but acknowledges a step function increase in flows and net effects from new investments [58][59] Additional Important Insights - AMG's unique position as a one-stop shop for various differentiated return streams allows it to capitalize on the trend of institutional LPs consolidating their relationships with fewer managers [35][36] - The company is exploring new product offerings in private markets, including structured credit and multi-asset products [39][40] This summary encapsulates the key points discussed during the conference call, highlighting AMG's strategic focus on alternatives, acquisition strategy, organic growth, financial performance, and outlook for the future.

NETGEAR Conference Call Summary Company Overview - NETGEAR is approaching its 30-year anniversary, having been spun out from Bay Networks in 1996 [2][4] - The company has historically been consumer-centric but is undergoing a significant transformation to elevate its enterprise business, which now accounts for about 50% of revenue [4][5] Financial Performance - The enterprise segment achieved a gross margin of approximately 50% and a contribution margin of around 25%, with a year-over-year growth of 16% [5] - The company recently held its first investor day, outlining mid and long-range targets and strategies for market success [5][7] Competitive Advantage - NETGEAR's competitive edge lies in its strong supply chain, global distribution, and high-quality product performance [10] - The company is focusing on software differentiation by insourcing software development, which was previously outsourced [10][11] - In the ProAV segment, NETGEAR's solutions reportedly reduce deployment time by 90% compared to legacy providers [12] Market Dynamics - The ProAV market is valued at approximately $3 billion and is expected to grow at a CAGR of 14% over the next five years [20] - NETGEAR aims to serve small to medium enterprises (SMEs) that are currently underserved by larger networking companies, focusing on affordability and reliability [21] Supply Chain and Component Issues - The company has faced supply constraints, particularly in the AV product line, with lead times exceeding one year for key components [24] - NETGEAR anticipates resolving supply issues by Q1 2026, with plans to build buffer stock [25] Consumer Market Insights - Despite concerns about consumer confidence and inflation, NETGEAR has experienced strong holiday sales, surpassing expectations [28] - The company is adapting its product offerings to include a "good, better, best" strategy to enhance market participation [28] Wi-Fi 8 and Future Opportunities - Wi-Fi 8 is expected to improve reliability and reduce latency, addressing key connectivity issues in homes [32] - The company is excited about the potential of Wi-Fi 8 and its alignment with their product roadmap [33] Subscription Services - NETGEAR sees long-term growth potential in consumer subscriptions, currently generating about $36 million in annual recurring revenue (ARR) [36] - The company plans to decouple subscription services from device sales to drive new subscriber growth [34] Service Provider Business Outlook - The service provider segment has declined by about 20% year-to-date, and NETGEAR does not expect it to be a growth area moving forward [37] - The company will continue to support its existing products but will focus on strategic investments in 5G technology [39] Financial Health and Cash Flow - NETGEAR's cash position has improved from $285 million at the start of 2024 to $326 million, despite stock repurchases and acquisitions [44] - The company expects to convert 85%-100% of non-GAAP net income into free cash flow [44] Strategic Focus - NETGEAR is committed to funding organic growth, exploring M&A opportunities, and returning capital to shareholders [45][46] - The company is in the early stages of a transformation roadmap, focusing on enhancing performance and growth in both consumer and enterprise segments [41][42] Conclusion - NETGEAR is executing a bold transformation strategy, with a focus on elevating its enterprise business and leveraging software differentiation [49] - Investors are encouraged to review the investor day presentation for detailed insights into the company's market strategies and financial outlook [49]

Summary of Iridium Communications Conference Call (December 09, 2025) Industry and Company Overview - **Company**: Iridium Communications (NasdaqGS:IRDM) - **Industry**: Satellite communications, specifically focusing on narrowband IoT and direct-to-device services Key Points and Arguments 1. **Industry Developments**: Significant changes in the satellite communications industry, particularly due to the SpaceX EchoStar spectrum deal, have prompted Iridium to pause buybacks and lower its leverage target from below 4x to below 3x by year-end [6][9][10] 2. **Free Cash Flow Guidance**: Iridium projects free cash flow of $1.5 billion to $1.8 billion from 2026 to 2030, indicating a strong cash-generating capability [6][10] 3. **Competitive Landscape**: The acceleration of Starlink's network rollout is expected to create competitive pressure in the market, prompting Iridium to build cash reserves and financial flexibility for potential M&A opportunities [7][8][9] 4. **M&A Strategy**: Iridium is considering both bolt-on and transformative M&A opportunities, particularly in the aviation safety platform space and identity access management [12][13][14] 5. **Spectrum Value**: Iridium holds 8.5 megahertz of L-band spectrum, described as "prime beachfront property," with global coverage and significant value due to its unique capabilities [19][20] 6. **Direct-to-Device Market**: Iridium is pursuing opportunities in the narrowband IoT space, with expectations of incremental revenue growth from this segment, which may be larger than the smartphone market [23][27][28] 7. **Partnerships and Agreements**: Recent MOUs with major telecom companies like Deutsche Telekom and Vodafone highlight Iridium's commitment to expanding its direct-to-device offerings [24][25] 8. **Government Contracts**: Iridium maintains a strategic relationship with the U.S. government, highlighted by an $86 million five-year IDIQ contract, which is expected to be renewed [36][37] 9. **Future Growth Opportunities**: Iridium is optimistic about its future, projecting a $100 million opportunity in position navigation and timing (PNT) by the end of the decade, alongside continued growth in its core business [39][40] Additional Important Insights - **Financial Resilience**: Iridium's current cash flow of $300 million per year provides a solid foundation for future growth and strategic initiatives [8][39] - **Market Adaptation**: The company is aware of the changing competitive environment and is adapting its strategy to focus on areas where it can maintain a competitive edge [42] - **Customer Base Dynamics**: Iridium's customer base includes NGOs and government entities, which value the ruggedness and reliability of its services, although there is some concern about competition from direct-to-device offerings [31][32][36] This summary encapsulates the key discussions and insights from the Iridium Communications conference call, highlighting the company's strategic direction and the evolving landscape of the satellite communications industry.

Summary of Flux Power Holdings Inc. Conference Call Company Overview - **Company Name**: Flux Power Holdings Inc. - **Industry**: Lithium-ion battery manufacturing - **Location**: Vista, California - **Products**: Lithium-ion battery packs, energy management systems, cloud-based SaaS platform for battery monitoring and control [2][3] Core Business Segments - **Material Handling**: Primarily used in forklifts across warehouses - **Airport Ground Support Equipment (GSE)**: Powers vehicles like tugs and pushback trucks at airports [3] Strategic Vision - Transition customers from lead-acid to lithium-ion batteries for improved productivity and ROI - Focus on operational efficiencies and profitability through new leadership and strategic objectives [4][7] Leadership Changes - New leadership team introduced to drive growth and profitability - Key members include: - **Krishna Vanka**: CEO with experience in battery and charging infrastructure - **Kevin Royal**: CFO with extensive experience in publicly traded companies - **Kelly Frey**: Chief Revenue Officer focusing on customer engagement and sales [4][6][7] Financial Performance - Revenue has stagnated between $60-$67 million over the last three years - Break-even point estimated at $16 million in revenue - Recent quarter saw a decline to $13.2 million due to tariffs impacting customer orders [20][21] Market Opportunity - **Material Handling Battery Market**: Estimated at $2.5 billion in 2025, growing at 9% - **GSE Market**: Projected to be a $5 billion business in the next year, growing at 7.8% - Current lithium-ion adoption in the forklift industry is only 15%-20%, indicating significant growth potential [15][17][16] Product Development and Innovation - Focus on modular product design to enhance scalability and efficiency - Recent patents awarded for AI-driven energy optimization and advanced battery management systems [13][14] - Introduction of intelligent batteries with remote monitoring capabilities [10][14] Customer Segments - Diverse applications across industries including food and beverage, retail, manufacturing, and airport GSE - Notable customers include major airlines and companies like Amazon and Caterpillar [18] Challenges and Future Outlook - Impact of tariffs has created uncertainty in order cadence, but signs of normalization are emerging - Plans to enhance gross margins through supply chain improvements and product redesign [21][24] - Anticipation of increased demand as customers transition to lithium-ion solutions [23][26] Conclusion - Flux Power is positioned for growth in the lithium-ion battery market with a strong focus on operational efficiency and customer engagement - The leadership team is committed to achieving profitability and capitalizing on the growing market demand for lithium-ion solutions [32]

Company Overview & Strategy - American Outdoor Brands (AOB) leverages innovation to widen distribution, expand brand awareness, and increase profitability [11] - AOB operates in two categories: Outdoor Lifestyle ($118.1 million TTM net sales) and Shooting Sports ($89.3 million TTM net sales) [14] - The company targets resilient consumer activities with approximately 175 million Americans participating in outdoor recreation [15] - AOB aims for $400 million in future net sales, approximately 2x larger than current sales, driven by innovation and new customers [60] Financial Performance & Model - In Q2 FY26, new products accounted for 31.4% of net sales [74] - The company's operating model is highly accretive, with a track record of delivering incremental margin on revenue growth above $200 million in net sales [61] - AOB expects EBITDA to exceed $70 million at $400 million in net sales [61] - The company has a debt-free balance sheet with $3.1 million cash on hand as of October 31, 2025 [67] Innovation & Growth - AOB's innovation platform has yielded $93 million+ of incremental organic revenue compared to five years ago [46] - The company has secured 170 new patents, protecting future revenue potential [46] - MEAT! Your Maker brand reached $18.4 million in fiscal 2025 sales, up 33% year-over-year [42]

Enhabit (NYSE: EHAB) Conference Call Summary Company Overview - Enhabit is one of the largest home health and hospice providers in the U.S. [2] Key Industry Insights - The final home health rate update from CMS resulted in a better outcome than initially proposed, although it still represents a cut [2][3] - Enhabit anticipates organic profitability growth in 2026 at a similar rate to 2025, despite the negative reimbursement rate [3][5] - The final rule indicates a potential end to permanent behavior adjustments by CMS, which is viewed positively by the company [7][8] Financial Performance and Projections - The company expects to target increased investments in 2026, including de novo openings and strategic M&A, due to improved balance sheet flexibility [4][12] - Temporary adjustments from CMS are projected to recoup approximately $460 million in 2026, with a total over-reimbursement of $4.76 billion anticipated over ten years [10][11] - Approximately 20% of Enhabit's Medicare Advantage (MA) census is linked to Medicare fee-for-service [16] M&A and Investment Strategy - Enhabit plans to be disciplined in M&A, focusing on accretive transactions, particularly in home health, while hospice acquisitions may be more challenging due to high multiples [12][13] - The company is looking to increase de novo investments in hospice, particularly in overlapping markets with home health [13][57] Payer Innovation and Contract Negotiations - 57% of Enhabit's non-Medicare admissions are in payer innovation contracts, up from 52% year-over-year [19] - The company is successfully renegotiating contracts, achieving low double-digit rate increases without significant disruption [21][22] - Enhabit is focusing on moving per-visit contracts towards episodic contracts to better manage patient care [25][26] Market Dynamics and Challenges - Medicare fee-for-service admissions declined by about 3% in Q3, with Enhabit maintaining a mix of 47% Medicare and 53% MA [32][33] - The company is actively working to improve its fee-for-service mix through partnerships and community care initiatives [34][36] Cost Management and Labor - Enhabit expects a decline in cost per day due to increased volume and fixed salary costs [37] - Wage inflation is projected to remain around 3% for both home health and hospice [38][46] Growth Projections - Long-term growth for both home health and hospice is expected to be in the mid to high single digits [43][49] - The hospice segment has seen robust growth, with 25% of hospice admissions coming from home health [59] Corporate Financial Health - Enhabit exited the quarter with a leverage ratio of 3.9, with plans to maintain flexibility while pursuing targeted acquisitions [60][61] - The company aims to balance free cash flow deployment with deleveraging efforts [62] Conclusion - Enhabit is positioned for growth through strategic investments, disciplined M&A, and a focus on improving profitability despite regulatory challenges in the home health and hospice sectors [4][12][60]