Financial Data and Key Metrics Changes - Net investment income for Q4 2025 was $0.36 per share, and $1.45 for the full year, indicating a yield to book value of 2.7% for Q4 and 11% for the year [4][18] - Gross investment income totaled $14.2 million for Q4, down from $15.1 million in Q3, primarily due to one-time fees from unscheduled repayments recognized in Q3 [17] - Net investment income for Q4 was $8.3 million, compared to $9.5 million in Q3, reflecting a decrease due to one-time fees [18] - Net assets totaled $303.4 million at quarter end, with a net asset value per share of $13.30, slightly up from $13.27 in Q3 [18] Business Line Data and Key Metrics Changes - The company funded $31.7 million across 7 new investments in Q4, including 4 new borrowers, with 100% of these being senior secured loans [5][20] - The average credit investment size was approximately 2.4% of the debt portfolio at fair value, with 25% of the portfolio invested in non-cannabis companies [16] Market Data and Key Metrics Changes - The broader BDC market faced negative sentiment, with many BDCs trading below net asset value by the end of 2025, leading to concerns about potential dividend cuts and losses in existing loan books [5] - The weighted average yield on debt investments was 15.8%, compared to 10.8% for the average public BDC [9] Company Strategy and Development Direction - The company focuses on direct loans to privately held companies in niche markets, particularly the cannabis sector and lower middle market, which are often overlooked by capital providers [4][6] - The strategy emphasizes downside protection and aims to deliver attractive returns through disciplined credit and collateral focus [8][13] - Recent M&A activity in the cannabis market has increased the company's pipeline for 2026, with a total of approximately $732 million in potential debt transactions [11][22] Management's Comments on Operating Environment and Future Outlook - Management noted that the recent shift in cannabis policy at the federal level could significantly increase cash flow for borrowers, leading to higher equity valuations and increased M&A activity [12] - The company remains cautious about the regulatory environment but believes it is well-positioned to benefit from developments in the cannabis sector [13] - Management highlighted that the current market anxiety presents opportunities for disciplined lenders, as they can capitalize on the strengths of their portfolio and liquidity [25] Other Important Information - The company has a low debt-to-equity ratio of 0.08x, significantly below the BDC average of 1.2x, and has no non-accruals compared to an industry average of 3.3% [11] - The company announced a $0.34 dividend, marking the sixth consecutive quarter at that rate, with total dividends for the year amounting to $1.36 per share [11] Q&A Session Summary Question: Clarification on the $732 million pipeline - The pipeline figure refers to the entire Chicago Atlantic Group platform, showing an increase from approximately $600 million reported last quarter [31] Question: Impact of rescheduling discussions on borrower activity - Management noted increased eagerness among larger players for consolidation and operators considering exits, which is positive for financing opportunities [33] Question: Activity in specific states regarding cannabis - There is increased activity in states like Virginia and ongoing consolidation in mature markets such as Ohio and Colorado [35] Question: Potential for increasing the credit facility - There is room to increase the revolver in 2026, along with other financing options available to BDCs [36] Question: Insights on repayments in Q4 and Q1 - The higher-than-expected repayments were idiosyncratic across several borrowers, reflecting broader transaction activity in the market [44]

Financial Data and Key Metrics Changes - For Q4 2025, total sales were $112.1 million, down from $119.2 million in Q4 2024, with comparable sales decreasing by 7.3% [30] - Full-year total sales were $435 million, compared to $467 million in the previous year, with comparable sales down 8.4% [30] - Gross margin for Q4 2025 was 40.8%, down from 44.4% in Q4 2024, primarily due to lower merchandise margin and occupancy deleverage [31] - Full-year gross margin was 43.4%, compared to 46.5% the previous year, reflecting occupancy deleverage and the impact of tariffs [31] - SG&A expenses for Q4 were 42.4% of sales, compared to 41.7% in Q4 2024, while full-year SG&A expenses were $187.4 million, down from $198.3 million [32] Business Line Data and Key Metrics Changes - Comparable sales in stores decreased by 8.6% in Q4, while the direct business was down 4.3% [30] - The sales performance in Q4 was mixed, with November down 5.3%, December down 6.1%, and January down 12.9% due to severe weather [10] - The digital business faced a slight decline in conversion, reflecting demand softness and a competitive promotional environment [11] Market Data and Key Metrics Changes - The company noted a positive shift in sales momentum into 2026, with February showing a -1.3% decline, an improvement from January [5] - The company is optimistic about stabilizing the business and returning to profitable growth, focusing on customer engagement and cost control [9] Company Strategy and Development Direction - The company is focusing on strategic initiatives such as FiTMAP, assortment, and marketing to enhance customer experience and drive sales [8] - Plans for 2026 include increasing private brand penetration from approximately 57% to over 60% [23] - The company aims to stabilize the business and drive profitable growth by closely managing costs and leveraging inventory [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving sales trends and the potential for a rebound in customer spending [5] - The company is navigating challenges in the big and tall retail sector, including economic headwinds and changing consumer behavior [50] - Management anticipates that demand will eventually return as customers will need to replace worn clothing [50] Other Important Information - The company ended the year with $28.8 million in cash and investments and no outstanding debt, providing financial flexibility [34] - A non-cash charge of $20.4 million was taken in Q4 to establish a full valuation allowance against deferred tax assets due to net operating losses [35] Q&A Session Summary Question: Can you provide updates on the FiTMAP technology and its momentum? - Management indicated that FiTMAP has been rolled out in 188 stores, with a focus on increasing customer scanning and training associates to maximize its potential [39][41] Question: What is the competitive response in the big and tall market? - Management noted that the market is impacted by various factors, including economic conditions and consumer spending habits, but they expect a rebound as customers will eventually need clothing [48][50] Question: What is the expected gross margin impact from increasing private brand penetration? - Management stated that private brands typically have higher margins compared to national brands, and the shift is expected to positively impact gross margins over time [56][59] Question: How is the store fleet being managed in light of current economic conditions? - The company plans to pause new store openings in 2026, focusing instead on converting existing stores and optimizing the current fleet based on customer demand [62][64]

Financial Performance and Key Metrics - In 2025, the company reported a net loss of approximately $3.7 million, reflecting increased operational expenses tied to infrastructure investments [2][3] - The company ended the year with approximately $6.3 million in cash, providing a solid financial base for ongoing operations [3] - Operating expenses were reduced by 4% in Q4 compared to the previous quarter, with R&D expenses down by 26% and sales and marketing expenses reduced by 32% [3] Business Line Performance - The revenue remains limited and is driven by project timing and milestone recognition, typical for a company at this stage [3] - The successful launch of the first onshore wave energy pilot project in the U.S. at the Port of Los Angeles was a key milestone [7][8] - The project at Jaffa Port in Israel maintained zero downtime and generated stable electricity under varying wave conditions [8] Market Data and Key Metrics - The company is advancing projects in Portugal and Taiwan, with a focus on megawatt-scale developments [9] - Collaboration with BPCL in India and feasibility studies for an eight-megawatt project in South Africa are part of the diversified global pipeline [9] Company Strategy and Industry Competition - The company is transitioning from pilot projects to larger commercial wave energy arrays, with a focus on operational and financial efficiency [5][10] - The intersection of AI and energy demand is seen as a significant opportunity, particularly for data centers located near coastal regions [10][11] - The company is exploring digital capabilities, including the Wave GPT platform, to optimize performance and improve energy forecasting [11] Management Commentary on Operating Environment and Future Outlook - Management highlighted the growing need for reliable and renewable energy sources due to the increasing electricity demands from AI-driven applications [6][10] - The company believes its technology is well-positioned to contribute to the evolving energy landscape, particularly in coastal areas [4][10] - The combination of validated technology, a growing project pipeline, and increasing demand for clean energy positions the company well for future growth [11] Other Important Information - The company was featured in NVIDIA's GTC Keynote, showcasing its digital twin technology as part of AI real-world energy solutions [4][6] Q&A Session Summary - No specific questions or answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - The company generated $3.3 billion in total sales, a 5.9% increase from last year, driven by same-restaurant sales growth of 4.2% [5][15] - Adjusted diluted net earnings per share from continuing operations were $2.95, reflecting a 5.4% increase year-over-year [16] - Adjusted EBITDA was $579 million, with a return of $300 million to shareholders through dividends and share repurchases [16] Business Line Data and Key Metrics Changes - Olive Garden's total sales increased by 4.7%, with same-restaurant sales growth outperforming the industry benchmark by 440 basis points [18] - LongHorn Steakhouse saw total sales rise by 11.2%, with same-restaurant sales growth of 7.2%, exceeding the industry benchmark by 840 basis points [19] - The fine dining segment's total sales increased by 4.3%, driven by positive same-restaurant sales of 2.1% [20] - The Other Business segment reported a 3.2% increase in sales, with same-restaurant sales growth of 3.9% [20] Market Data and Key Metrics Changes - The average same-restaurant sales for the industry decreased by 1.2%, while guest counts decreased by 3% [4] - The company's same-restaurant sales exceeded the industry benchmark by 540 basis points during the quarter [15] Company Strategy and Development Direction - The company plans to open 70 new restaurants in fiscal 2026 and has updated its guidance to reflect year-to-date results [21] - The strategic focus includes enhancing guest experiences and maintaining high team member retention levels [6][12] - The company is pursuing a shared purpose to nourish and delight everyone it serves, including educational scholarships for team members' children [13][14] Management's Comments on Operating Environment and Future Outlook - Management noted that winter weather negatively impacted same-restaurant sales by approximately 100 basis points, but adjusted sales growth was over 5% [15] - The company remains confident in its ability to grow sales and manage costs, with a focus on long-term strategies [12][24] - Management expressed optimism about the fourth quarter, expecting total sales growth of 13%-14.5% [21] Other Important Information - The company has completed the exploration of strategic alternatives for the Bahama Breeze brand, resulting in the permanent closure of 14 locations [22] - The lighter portion menu at Olive Garden has been well-received, with increased guest frequency and satisfaction scores [51] Q&A Session Summary Question: What is driving the same-store sales guidance for the fourth quarter? - Management indicated that the guidance reflects strong business drivers and initiatives in place, particularly for Olive Garden [26][27] Question: How does pricing relate to inflation moving forward? - Management expects pricing to catch up to inflation in the fourth quarter, which should positively impact margins [30][31] Question: What explains the same-store sales growth gap between LongHorn and Olive Garden? - Management noted that LongHorn has been underpricing beef costs and has focused on quality, which has driven traffic and sales [34][35] Question: How are rising gas prices impacting consumer behavior? - Management stated that historically, gas prices have less impact on restaurant spending compared to durable goods, and they are not overly concerned about gas prices affecting traffic [42][43] Question: What is the outlook for beef prices in FY 2027? - Management indicated strong fixed price coverage for Q4 and is starting to lock in rates for FY 2027, but supply-side dynamics remain uncertain [48][49] Question: How is marketing expense being managed in the context of updated guidance? - Management expects marketing expenses to remain consistent as a percentage of sales, aided by cost savings from media buys [55] Question: What is the performance outlook for the fine dining segment? - Management noted that all fine dining brands had positive same-restaurant sales, driven by strong private dining and menu offerings [57]

Financial Data and Key Metrics Changes - Q4 2025 revenue was $44.8 million, reflecting a 65% year-over-year increase excluding OLMS revenue [20][21] - Q4 gross margin was $8.5 million, representing a 19% positive gross margin, driven by higher margin services revenue [21] - Operating loss for Q4 was $33.1 million, compared to a loss of $13.4 million in Q4 2024, primarily due to acquisition-related expenses [22] - Free cash flow for the year was negative $56 million, an improvement of $11.7 million versus 2024 [22][23] - Cash balance at year-end was $583 million, which decreased to $272 million after the acquisition of Lanteris [23][24] Business Line Data and Key Metrics Changes - The company completed its second lunar mission and expanded into national security space programs, with a diversified revenue mix of approximately 40% commercial, 40% civil space, and 20% national security [5][6] - OLMS revenue was $14.7 million in Q4, contributing to overall growth across key programs [20] Market Data and Key Metrics Changes - The backlog at year-end was $213.1 million, with approximately 60%-65% expected to convert to revenue in 2026 [24][25] - As of February, the combined company backlog is estimated at $943 million, including recent contract awards [26] Company Strategy and Development Direction - The company aims to become a prime operator in space infrastructure, focusing on building, connecting, and operating space systems [8][9] - The strategy includes leveraging proven production platforms to enter new growth markets and expanding capabilities in lunar and national security domains [6][17] - The company is investing in expanding its Near Space Network service and establishing a Solar System internet [18] Management's Comments on Operating Environment and Future Outlook - Management expects 2026 revenue to approach $1 billion, nearly a 5x increase from 2025, with strong visibility into the outlook due to contracted backlog [5][29] - The company anticipates continued margin improvement and targets positive adjusted EBITDA for the full year [29][30] - Management is optimistic about the acceleration of Artemis missions and the potential for increased contract awards [47][78] Other Important Information - The company completed a $175 million strategic equity investment to support growth initiatives [18] - The acquisition of Lanteris is expected to enhance capabilities and market position, with integration progressing ahead of schedule [19][36] Q&A Session Summary Question: Integration of Lanteris - Integration is going well, with customers excited about the opportunities created by the business combination, and the process is ahead of schedule [36] Question: National Security Programs - Key programs include the Space Development Agency's tracking layer and proposals for Golden Dome and orbital transfer vehicles [41][42] Question: Revenue Guidance for 2026 - Revenue is expected to be steady throughout the year, with potential upside from accelerated Artemis missions [46][47] Question: Capabilities Post-Lanteris Acquisition - The acquisition allows for enhanced satellite production capabilities and the ability to offer versatile services in various markets [52] Question: Lunar Terrain Vehicle (LTV) Decision - The decision on LTV is imminent, with potential for one primary award and a backup contract [51] Question: Competitive Landscape - Increased cadence of lunar missions is expected to benefit the company, with a focus on sustained presence on the Moon [83]

Financial Data and Key Metrics Changes - For the full year 2025, rental segment revenue was $2.7 billion, up 34% year-over-year [6] - Adjusted Core EBITDA was $1.7 billion, reflecting a 32% increase year-over-year [7] - Net income for Q4 2025 was $65 million, compared to $50 million in Q4 2024, and for the full year 2025, net income was $40 million, up from $3 million in the prior year [28] Business Line Data and Key Metrics Changes - The mature site rental segment achieved an Adjusted EBITDA margin of 54%, consistent with the target of over 50% [7] - The specialty division scaled 34% year-over-year, with revenue from T3 and the materials business growing over 100% [10] Market Data and Key Metrics Changes - The company added 95 locations, bringing the total to 385 by the end of 2025 [6] - The rental segment is expected to grow approximately 27% year-over-year in 2026, supported by a strong demand environment [7] Company Strategy and Development Direction - The company focuses on solving customer problems through a tech-empowered offering and aims to capture market share in a fragmented industry [5][9] - The strategy includes investing in organic growth, with new locations expected to generate strong returns as they mature [8][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong customer demand, particularly for large national infrastructure projects [32] - The company is prepared to moderate investments if demand softens, prioritizing cash flow generation while protecting returns on capital [32] Other Important Information - The company incurred $252 million in one-time new market start-up costs in 2025, which are expected to create long-term earnings-generating assets [8] - The OWN Program saw OEC grow to over $4.9 billion in 2025, compared to $3.4 billion in 2024 [23] Q&A Session Summary Question: Can you expand on the mature site performance in the quarter? - Management noted strong performance from mature sites, with margins at 54% and a ROIC of 16.5%, expecting similar performance into 2026 [36] Question: What is the cadence for new rental site locations in 2026? - Management indicated that the opening of new sites will be linear, with strong visibility for the entire year [41] Question: How do you see the impact of higher diesel prices on your P&L? - Management stated that while they do not see an immediate impact, higher diesel prices typically drive efficiency, leading customers to choose EquipmentShare [72] Question: What are the expectations for the building products business in 2026? - Management emphasized that growth in the building products business will follow the disciplined growth of the rental business, enhancing ROIC [86]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $462 million, a 5% increase compared to Q4 2024 [14] - Gross profit increased by 4% year-over-year, with a gross margin of 45%, slightly down by 30 basis points [14] - Adjusted EBITDA for the full year was $102 million, up 10% from the previous year [9][16] - Adjusted net income increased over 100% to $27 million, with adjusted earnings per share rising by 46 cents to 86 cents [16] Business Line Data and Key Metrics Changes - U.S. e-commerce business grew by 5% compared to Q4 2024, with record new-to-brand acquisition up 20% year-over-year [14] - Third-party marketplace revenue grew by 4%, led by double-digit growth at Amazon [15] - The school uniform channel sustained double-digit growth, contributing to overall performance [7] Market Data and Key Metrics Changes - European business saw a turnaround with sales growth of 9% in Q4, reversing a multi-quarter trend [15] - The company experienced mid-single-digit GMV growth in Q4, reflecting broad-based momentum [5] Company Strategy and Development Direction - The company announced a transformative partnership with WHP Global to create a joint venture aimed at monetizing and building on its intellectual property [10] - The strategy includes focusing on profitable customer growth, improving acquisition and retention, and expanding brand reach internationally [19] - The company plans to leverage its partnership with WHP to accelerate brand licensing growth and strengthen its balance sheet [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position heading into 2026, highlighting the importance of the WHP transaction for future growth [9][20] - The management noted that they are not currently providing forward financial guidance but expect to do so after the WHP transaction closes [18] Other Important Information - The company will use the majority of the $300 million cash proceeds from the WHP transaction to retire its term loan, resulting in zero term loan debt [11][17] - The company has $9 million remaining on its existing share repurchase program [18] Q&A Session Questions and Answers Question: How will the partnership with WHP align with the brand vision? - The company selected WHP as a partner due to their like-minded approach, ensuring alignment with the brand vision [27] Question: Who are the new customers acquired, and what demographics do they represent? - The new customers are younger and include multiple generations, with a focus on customization as a competitive advantage [48] Question: What is driving the turnaround in Europe, and can those strategies be applied elsewhere? - The turnaround is attributed to a focus on franchises and personalization, with successful strategies expected to be transferable to the U.S. market [61] Question: What are the strategic opportunities for growth post-debt repayment? - While specific opportunities are not disclosed, the company plans to discuss growth strategies in detail during the next earnings call [82]

Financial Data and Key Metrics Changes - In Q4 2025, revenue increased by 80% year-over-year to $794 million, while full year revenue reached approximately $2.49 billion, marking a 35% year-over-year increase [15][16] - Gross margin for Q4 and full year 2025 was over 18%, with realized gross profit of $144 million and $464 million respectively, driven by strong productivity and cost containment [16] - Adjusted EBITDA for Q4 was $100 million, and for the full year, it was $342 million, more than doubling from 2024 [16][19] Business Line Data and Key Metrics Changes - The existing infrastructure or O&M services business contributed $113 million for the full year, an increase of nearly 55% year-over-year [15] - The backlog as of December 31, 2025, stood at over $8 billion, an increase of 87% since year-end 2024, providing significant visibility into future performance [17] Market Data and Key Metrics Changes - Across the U.S., there is an unprecedented surge in electricity demand driven by data center growth and reshoring of manufacturing, with digital infrastructure and manufacturing investment running at roughly 3x historical averages [6][7] - Solar and storage build rates have nearly tripled, and expected load growth has increased almost fivefold, positioning solar as the lowest cost source of new generation [6][7] Company Strategy and Development Direction - The company focuses on the fastest growing segment of the market, especially projects above 200 MW, and is expanding its O&M business to deepen recurring revenue [13] - The strategy includes leveraging capabilities to move into adjacent markets, investing in innovation, and pursuing strategic acquisitions to strengthen capabilities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand environment and the company's ability to capitalize on it, with a clear growth strategy in place [14][19] - The company initiated full year financial guidance for 2026 with revenue expected in the range of $3.72 billion to $3.82 billion, representing a 51% increase at the midpoint compared to 2025 [18] Other Important Information - The company completed more than 500 projects and constructed over 21 GW of capacity, managing over 20 GW of generation across 150 power plants [8] - The company has a strong safety record, with a Total Recordable Incident Rate (TRIR) of 0.48, which is 70% below the industry average [5] Q&A Session Summary Question: Thoughts on gross margin guidance for 2026 - Management acknowledged seasonality in the business and noted that strong performance in 2025 was due to large service projects, which are harder to predict [24][25] Question: Use of cash on the balance sheet - Management indicated they are exploring options to grow services and strengthen core offerings, recognizing the strong position post-IPO [27][28] Question: Impact of gas prices on project costs - Management stated that fuel costs have less than 1% impact on project costs, and they are monitoring the situation closely [32][34] Question: Competitive environment outlook - Management noted that demand is driving the market, and the competitive landscape is shrinking as fewer providers can meet the scale required [35][36] Question: Bookings outlook for coming quarters - Management reported continued opportunities in the pipeline, with backlog growing quarter-over-quarter and no signs of market slowdown [39][40] Question: Mix of solar only versus paired with storage in backlog - Management indicated that approximately $2 billion of the $8 billion backlog is related to standalone or hybrid projects involving battery storage [70] Question: Market share opportunities in battery storage - Management confirmed that battery storage is a growing focus, with ongoing discussions with customers about integrating battery solutions into their portfolios [75]

Financial Data and Key Metrics Changes - Total revenue for Q4 fiscal 2026 was $641.8 million, a 14.6% decrease from $759.9 million in the prior year, driven by weaker demand in domestic agriculture, construction, and Europe segments, partially offset by growth in Australia [13] - Gross profit for Q4 was $87 million, with a gross profit margin of 13.5%, approximately double last year's rate, primarily due to lapsing inventory impairments [13] - Net loss for Q4 was $36.2 million, with a loss per diluted share of $1.59, including a non-cash valuation allowance that increased income tax expense [15] - Adjusted net loss for fiscal 2026 was $50.6 million or $2.22 loss per diluted share, compared to an adjusted prior year net loss of $29.7 million or $1.31 loss per diluted share [19][20] Business Line Data and Key Metrics Changes - Domestic agriculture segment sales were $406.7 million, reflecting a same-store sales decline of 22.8% due to softening equipment demand [17] - Construction segment same-store sales decreased 4.6% to $90.2 million, driven by lower equipment sales [17] - Europe segment sales increased 5.2% to $68.8 million, with pre-tax income of $1.8 million compared to a pre-tax loss of $1.8 million in the prior year [18] - Australia segment sales increased 16.7% to AUD 76.1 million, with pre-tax income of $2.5 million compared to $2.3 million last year [19] Market Data and Key Metrics Changes - The domestic agriculture market remains challenging, with commodity prices below breakeven for most growers, leading to conservative equipment purchasing decisions [8] - In Australia, market conditions are similar to the U.S., but elevated input costs for diesel fuel and urea have exacerbated challenges [9] - Modest industry volume growth is expected in fiscal 2027, with a focus on infrastructure spending and ongoing data center construction [10] Company Strategy and Development Direction - The company aims to shift focus from inventory reduction to product mix optimization in fiscal 2027, improving inventory turns and decreasing interest expense [7] - The customer care initiative remains central to the operating strategy, generating over half of gross profit dollars and providing stability during tough industry conditions [7] - The company is positioned to benefit from aggressive inventory reduction and is optimistic about long-term fundamentals despite current market challenges [11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about modest industry volume growth in fiscal 2027, despite expected declines in certain segments [10] - The company is actively lobbying for government support, including the passage of E15, which is seen as critical for alleviating oversupply issues [8][33] - Management emphasized the importance of maintaining exceptional customer service and operational discipline to navigate the current downturn [11][72] Other Important Information - The company achieved a total inventory reduction of over $200 million in fiscal 2026, significantly surpassing initial targets [5][21] - Aged equipment inventory declined by approximately 45% in the second half of fiscal 2026, contributing to improved equipment margins [22] Q&A Session Summary Question: Is there any movement by the farmer community to start getting interested in loosening the purse strings? - Management noted some recent positive trends in corn pricing, but many growers remain below breakeven and cautious about equipment purchases [31] Question: Are you comfortable that you're sized right to maximize leverage in a future upcycle? - Management expressed confidence in being well-positioned to capitalize on any future market recovery, emphasizing the importance of customer care and operational readiness [34] Question: What is baked into your guidance regarding China and E15? - Management indicated that the guidance assumes China honors its commitments to buy more beans, but no specific assumptions were made regarding E15 [40] Question: Have you noticed any shift in sentiment among farmers due to the ongoing war with Iran? - Management acknowledged that higher fertilizer and diesel prices are impacting farmers, but there is potential for positive outcomes if commodity prices rise [42][46] Question: What is the expected CapEx for 2027? - Management guided to about $15 million of CapEx, reflecting a prudent approach in the current environment [48] Question: What are the expectations for depreciation and amortization in 2027? - Management expects depreciation and amortization to remain stable, around mid-$30 million, with a slight decrease anticipated [61]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $462 million, a 5% increase compared to Q4 2024 [14] - Adjusted EBITDA for the full year was $102 million, up 10% from the previous year [9][16] - Gross margin for Q4 was 45%, a slight decrease of approximately 30 basis points year-over-year, but increased by 140 basis points to 47% when excluding the impact of tariffs [14][15] Business Line Data and Key Metrics Changes - The U.S. e-commerce business grew by 5% compared to Q4 2024, with record new-to-brand acquisition up 20% year-over-year [14] - Third-party marketplace revenue grew by 4%, led by double-digit growth at Amazon [15] - The school uniform channel sustained double-digit growth, contributing to overall positive performance [7][15] Market Data and Key Metrics Changes - The European business delivered high single-digit comps, reversing a multi-quarter trend [6] - The overall GMV grew by mid-single digits in Q4, reflecting broad-based momentum [5][14] Company Strategy and Development Direction - The company announced a transformative partnership with WHP Global to create a joint venture aimed at monetizing and building on its intellectual property [10][11] - The focus for 2026 includes driving profitable customer growth, improving acquisition and retention, and expanding brand reach internationally [19][20] - The company plans to leverage its new Chief Marketing Officer to enhance brand awareness and accelerate growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position heading into 2026, highlighting the strength of the brand and the potential for value creation through the WHP partnership [9][20] - The company is monitoring economic conditions, particularly in Europe, but has not seen significant impacts from external factors like the war or tariffs on its U.S. business [51][63] Other Important Information - The company will use the majority of the $300 million cash proceeds from the WHP transaction to retire its term loan, resulting in zero term loan debt [11][17] - The company is not providing forward financial guidance at this time but expects to do so with the release of its first-quarter results [18] Q&A Session Questions and Answers Question: How should we think about the marketing strategy with the new CMO? - The partnership with WHP was selected to ensure alignment with the brand vision, focusing on amplification and growth in licensing [27][28] Question: Can you elaborate on the new customer demographics and margin outlook? - The customer file is growing, with a focus on reaching a multi-generational audience, and management is optimistic about margin improvements despite external challenges [40][48] Question: What is driving the turnaround in Europe? - The company has refocused on its franchises and personalization strategies, which have shown strong results in the European market [61][63] Question: What are the strategic opportunities for growth post-debt repayment? - While specific opportunities are not disclosed, management indicates a focus on growth and flexibility following the elimination of term loan debt [82]