Financial Data and Key Metrics Changes - For Q4 2025, diluted earnings per share increased by 23% year-over-year, while for the full year, it grew by 25% year-over-year [7] - Total operating revenue and other income rose by 107% year-over-year to $734 million in Q4, driven by the Mercury acquisition and increased managed receivables [12] - Managed receivables increased by 37% year-over-year, with new account originations up 73% for the year [8] Business Line Data and Key Metrics Changes - The acquisition of Mercury Financial effectively doubled the company's balance sheet to approximately $7 billion and added over 1.3 million customers [4] - The company acquired a $165 million retail credit portfolio from a competitor, enhancing its position in the second look point-of-sale market [7] - Purchase volume increased by 54% for Q4 year-over-year and by 32% for the full year [8] Market Data and Key Metrics Changes - The competitive landscape remains robust, with record solicitations leading to some softening in response rates and marketing efficiency [9] - The company has seen stable consumer behavior, with consistent payment performance and stable delinquency trends [8] Company Strategy and Development Direction - The Mercury acquisition is expected to enhance long-term earnings power through disciplined portfolio management and cost savings [5] - The company aims for long-term earnings growth of 20% or more annually while maintaining a return on average equity of 20% or greater [11] - The integration of Mercury is expected to be completed by early 2027, with ongoing realization of synergies and efficiencies [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of consumer behavior despite economic uncertainties, noting that consumers are managing their finances prudently [9] - The company anticipates a robust tax season, which may lead to a temporary slowdown in growth but will ultimately reduce delinquencies [31] - Management is closely monitoring macroeconomic factors, such as oil prices, and is prepared to adjust strategies based on consumer behavior [42] Other Important Information - The company ended the year with over $600 million in unrestricted cash and maintained a diversified funding model [15] - The integration of Mercury is progressing well, with operational efficiencies already being realized [6] Q&A Session Summary Question: Integration progress of Mercury - Management confirmed that the integration is ahead of schedule, with significant changes in portfolio terms already implemented [19][20] Question: Funding structure and macro concerns - Management stated that funding partners remain supportive, and there has been no deterioration in access to capital markets [25][26] Question: Tax refund season implications - Management expects a robust tax season, which may lead to paydowns affecting balances but ultimately reducing delinquencies [31] Question: Customer concentration risk - Management indicated that while some merchants have larger concentrations, the overall portfolio is diversified, mitigating concentration risk [35][36] Question: Fair value mark insights - Management explained that the fair value mark was adjusted conservatively due to the nature of the Mercury portfolio and expects improvements as the portfolio seasons [47][48]

Financial Data and Key Metrics Changes - Total revenue for the full year 2025 was $185.3 million, down 2% year-over-year from $189.9 million in 2024 [10] - Net loss from continuing operations was $57.3 million compared to $34 million in 2024, reflecting a non-cash goodwill impairment charge of $30.2 million [11] - Adjusted EBITDA improved 61% to $8.8 million compared to $5.5 million in 2024 [11] - Q4 revenue was $56.5 million, up 1% year-over-year [14] - Adjusted EBITDA for Q4 2025 was $12 million, compared to $10.9 million in Q4 2024 [15] Business Line Data and Key Metrics Changes - Advertising revenue for the full year declined 3% to $91.7 million, with programmatic advertising growing 7% to $69.6 million, representing 76% of total advertising revenue [10] - Content revenue increased 9% to $37 million, while studio revenue nearly tripled to $16.1 million [10] - In Q4, content revenue increased 56% to $14.7 million, driven by studio contributions [14] - Direct sold advertising declined 25% to $22.1 million for the full year and 5% to $7.4 million in Q4 [10][14] - Commerce and other revenue declined 8% to $56.5 million for the full year and 24% to $16.3 million in Q4 [11][14] Market Data and Key Metrics Changes - Time spent totaled 276.5 million hours for the full year, down 7% year-over-year [12] - In Q4, time spent was 70.3 million hours, down 11% year-over-year [15] Company Strategy and Development Direction - The company believes it is undervalued, with the current market value not reflecting the strength of its individual brands and assets [4] - The focus is on closing the gap between market valuation and intrinsic value, particularly through innovative work in AI and new product experiences [9] - The company is exploring strategic options to unlock value and address liquidity challenges [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the pessimistic view of digital media and legacy costs impacting market perception [5] - The company plans to demonstrate the value of its assets in concrete ways over the coming quarters [8] - Guidance for 2026 is being withheld due to ongoing evaluations of strategic opportunities [15] Other Important Information - The company generated close to $200 million from selling Complex and First We Feast, with these assets previously undervalued [4] - Total debt as of December 31, 2025, was $60.2 million, with expectations to use released funds from letters of credit to pay down debt [13] Q&A Session Summary Question: What is the company's outlook for 2026? - The company is withholding guidance for 2026 as it evaluates strategic opportunities that could materially impact its business shape [15]

Financial Data and Key Metrics Changes - Consolidated operating income for Q4 2025 was approximately $800,000, down from $1.5 million in Q4 2024, impacted by $400,000 in M&A-related expenses [7] - Revenue increased to $11.9 million in Q4 2025 from $10.8 million in Q4 2024 [10] - Adjusted EBITDA decreased to $1.1 million in Q4 2025 from $2.1 million in the prior year [10] - Net income was approximately $300,000 or $0.01 per diluted share, compared to a loss of approximately $200,000 or $0.01 per diluted share in Q4 2024 [10] Business Line Data and Key Metrics Changes - The industrial assets division reported operating income of approximately $1.1 million in Q4 2025, up from approximately $800,000 in the prior year [7] - The financial assets division reported operating income of approximately $900,000 in Q4 2025, down from $1.9 million in the prior year [7] - The ALT segment within the industrial assets division reported operating income of $538,000 in Q4 2025, compared to $276,000 in the prior year [8] Market Data and Key Metrics Changes - Consumer loan delinquencies remain elevated, particularly in credit card and auto loans, which are expected to lead to increased charge-offs moving forward [9] - The company noted a high volume of smaller asset transactions, as larger decisions were delayed due to ongoing economic uncertainty [8] Company Strategy and Development Direction - The company aims to define 2026 as the "year of the needle mover," focusing on larger transactions and aggressive M&A activity [5] - The recent acquisition of DebtX is expected to enhance capabilities in the financial asset segment and is anticipated to be accretive to both operating income and net income [10][18] - The company has moved into a new facility designed to accelerate growth and increase operational efficiency [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2026, citing a shift in sentiment among business development teams and an increase in deal flow [13] - There is a belief that the market is beginning to see a release of pent-up assets, which could lead to more significant transactions [21][27] - The company is preparing for a busy year, with expectations of increased auction activity and larger deals in the pipeline [30] Other Important Information - The company has a strong balance sheet with stockholders' equity of $67 million as of December 31, 2025, and a cash balance of $20.5 million [11] - The company plans to resume share repurchases after not repurchasing any shares in Q4 2025 [12] Q&A Session Summary Question: Clarification on DebtX acquisition accretion - The acquisition is expected to be accretive on both operating income and net income bases [18] Question: Seasonality of DebtX's business - DebtX typically has a strong Q4, driven primarily by banks looking to clean up their portfolios [19] Question: Exposure to private credit market - The DebtX acquisition provides exposure to the private credit market, particularly in the context of challenges in the commercial real estate sector [21] Question: Outlook for larger transactions in 2026 - Management noted a general hesitation in 2025 due to macroeconomic factors but is optimistic about the return of larger transactions in 2026 [26][27] Question: Specialty lending performance - The modestly negative performance in specialty lending was attributed to a lack of funding for larger loans [32]

Financial Data and Key Metrics Changes - In fiscal year 2026, the company achieved total revenue of $961 million, representing a 24% year-over-year growth, with subscription revenue growing by 26% year-over-year [6][22] - Q4 total revenue reached $254 million, growing 21% year-over-year, while subscription revenue was $192 million, up 23% year-over-year [22][23] - Q4 gross transaction volume (GTV) was $19.8 billion, reflecting a 16% year-over-year growth [22] - Q4 platform gross margin improved to 80%, an increase of 330 basis points year-over-year [24] - Q4 operating income was $27.1 million, resulting in an operating margin of 10.7%, an improvement of 740 basis points year-over-year [25] Business Line Data and Key Metrics Changes - Subscription revenue growth was driven by strong performance in Pro, commercial, and new trades [23] - Professional services revenue for Q4 was $8.9 million, with net dollar retention exceeding 110% for the quarter [24] - The company exited FY 2026 with approximately 10,800 total active customers, a 14% increase year-over-year [24] Market Data and Key Metrics Changes - The company noted that GTV contribution from new customers remained consistent, but growth from existing customers was impacted by one fewer business day and unusual weather conditions [22] - The company is seeing healthy ongoing growth in its existing AI-native pro products and early promising signs from recently launched virtual agents [14] Company Strategy and Development Direction - The company aims to leverage its proprietary data set and AI capabilities to enhance its agentic operating system for the trades, focusing on automation and operational efficiency [15][20] - The strategic goals for FY 2027 include executing on multi-year growth factors, bringing the agentic operating system to life, and significantly improving execution velocity for customers [15] - The company is expanding its Max program, which integrates AI capabilities to enhance customer outcomes and drive revenue growth [12][14] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of AI in transforming operational workflows and improving customer outcomes, emphasizing the potential for significant revenue and margin expansion [9][10] - The management expressed confidence in the company's ability to attract top talent and invest in R&D to capitalize on growth opportunities [31][20] - The company anticipates continued strength in free cash flow and plans to invest aggressively in AI and internal tooling [27][25] Other Important Information - The company has made significant progress in its commercial and roofing initiatives, positioning itself as a leader in these markets [17][18] - The new Chief Technology and Product Officer, Abhishek Mathur, is expected to drive improvements in product development and execution velocity [20] Q&A Session Summary Question: Impact of Weather on Q4 Results - Management noted that Q4 was warmer than the previous year, with an ice storm affecting technician availability, impacting GTV growth [30] Question: Incremental Margin Commentary - Management explained that the high incremental margins were due to overperformance in usage and being behind in hiring, which limited reinvestment opportunities [31] Question: Sales Capacity and Growth - Management indicated that while there are opportunities to invest in sales, there is a natural limit to the number of deals that can be pursued in a given year [34] Question: Commercial Business Update - Management confirmed that the commercial segment is on track, with positive customer feedback and successful onboarding processes [37] Question: Scaling the Max Program - Management emphasized that the Max program is viewed as the future of the company, focusing on establishing product-market fit before scaling [40] Question: Adoption Curve for Max - Management discussed the phased approach to scaling Max, with a focus on efficient onboarding and delivering outcomes to customers [49] Question: Virtual Agents and Financial Impact - Management explained that virtual agents are designed to handle inbound calls, with early growth contributing to overall revenue, though still in early stages [64] Question: Partner Monetization - Management clarified that partner monetization is a growing part of the business, which may lead to usage revenue outpacing GTV growth [66] Question: Customer Adoption of AI - Management acknowledged a spectrum of customer willingness to adopt AI, with many eager to leverage the Max program for improved outcomes [68]

Financial Data and Key Metrics Changes - Net sales for Q3 were $56.6 million, down 3.3% year-over-year, but ahead of expectations [5][16] - Gross margin was 41%, down 370 basis points from the previous year, impacted by new tariffs and an inventory reserve of $1.2 million [17][18] - GAAP EPS for Q3 was a loss of $0.32 compared to a gain of $0.01 last year, while non-GAAP EPS was $0.12 compared to $0.21 last year [20] - Adjusted EBITDA for the quarter was $3.3 million, down from $4.7 million in the same quarter last year [21] Business Line Data and Key Metrics Changes - Outdoor lifestyle category net sales increased 5.4% year-over-year to $35.3 million, driven by BOG and MEAT! Your Maker brands [16][8] - Shooting sports category net sales declined 15%, primarily due to softness in aiming solutions [16][8] - New products represented over 26% of net sales in the quarter, indicating strong innovation [9][10] Market Data and Key Metrics Changes - Domestic net sales decreased 3.4%, while international net sales remained flat compared to last year [17] - Traditional channel net sales decreased by 2.1%, and e-commerce net sales decreased by 4.6% [17] Company Strategy and Development Direction - The company is focused on disciplined execution of its strategy, concentrating resources on brands and product categories that create the most value [5][10] - The decision to divest the UST brand reflects a commitment to capital allocation and portfolio management [11][12] - The company aims to build connected product ecosystems around select growth brands to enhance consumer engagement and create recurring revenue opportunities [10] Management's Comments on Operating Environment and Future Outlook - Management believes the underlying operating model remains intact despite ongoing uncertainties in the fiscal environment [5] - The company maintains its full-year guidance for net sales and adjusted EBITDA, expecting net sales in the range of $191 million to $193 million [25][26] - Management noted that consumer behavior remains uncertain, with affluent consumers continuing to spend while lower-income consumers are pulling back [56] Other Important Information - The company ended the quarter with $10.4 million in cash and no debt, maintaining a strong balance sheet [21][24] - Capital expenditures for Q3 were $1.2 million, with a revised full-year CapEx expectation of $3.5 million to $4 million [24] Q&A Session Summary Question: Can you remind us what was pulled forward in the fourth quarter last year? - Retailers pulled in roughly $10 million in the last two weeks of Q4 [31] Question: What are the current inventory levels of your retail customers? - Retailers are under-ordering relative to demand, but the majority of the business is performing well [33] Question: What was the reason for the increase in inventories? - The main driver for the increase in inventories was the rise in tariffs [40] Question: Should we expect continued gross margin pressure in the first half of 2027? - Yes, continued gross margin pressure is expected due to capitalized tariffs rolling into the P&L [44] Question: Did the third quarter sales borrow from the fourth quarter? - No, there was no shifting of orders; all sales came through as expected [48] Question: Was the impairment solely related to UST? - Yes, 100% of the impairment was related to UST [52]

Financial Data and Key Metrics Changes - APEI's consolidated revenue for full year 2025 grew 4% to $649 million compared to 2024, despite challenges such as the mid-year sale of Graduate School USA and a registration interruption at APUS [9][23] - Adjusted EBITDA for full year 2025 reached $85.7 million, up 19% from 2024, exceeding both revised and initial guidance [9][24] - Fourth quarter revenue was $158.3 million, down 3.5% year-over-year, but exceeded guidance across all key financial metrics [19][11] Business Line Data and Key Metrics Changes - APUS revenue for Q4 2025 was $71 million, down 13.8% year-over-year due to the federal government shutdown [19] - Rasmussen's revenue for Q4 2025 increased 15.9% to $66.6 million, driven by 8.9% enrollment growth [20] - Hondros College of Nursing reported Q4 revenue of $20.7 million, up 9.2% year-over-year, with enrollment of 4,000 students, an increase of 8.1% [20] Market Data and Key Metrics Changes - APUS experienced a 41% increase in TA registrations in December 2025 compared to December 2024, indicating strong demand from military students despite the earlier registration interruption [13] - The nursing and healthcare segments showed strong performance, with Rasmussen and Hondros both achieving significant revenue growth [8][12] Company Strategy and Development Direction - APEI is focused on a four-year growth strategy introduced at the recent Investor Day, aiming to simplify and strengthen the business [8] - The company plans to combine its institutions into one system and launch new campuses in 2026, targeting markets with demonstrated demand [14][15] - APEI aims for organic revenue growth of $890 million to $925 million by 2029, with strategic investments in new campuses and potential acquisitions [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential of the company, citing strong demand for nursing education and military service members [32] - The company anticipates improved profitability and cash flow due to debt refinancing and cost savings [16] - Management highlighted the resilience of military students and the ability to navigate funding disruptions without significant operational impact [27][80] Other Important Information - APEI's board authorized a $50 million share repurchase program to offset dilution from stock-based compensation [27] - The company ended 2025 with a strong balance sheet, including cash equivalents of $176.5 million and total debt of $96.4 million [25][26] Q&A Session Summary Question: CapEx cadence for new campus openings - Management expects most CapEx related to new campuses will occur in the second half of the year [35][38] Question: Expected revenue and margin for new campuses - New campuses are expected to generate about $12 million in revenue with a 35% EBITDA margin, taking 8-18 months to become cash flow positive [38] Question: Marketing strategy post-institution combination - Brands will remain present in local markets, with best practices shared across institutions to optimize marketing spend [54] Question: Impact of government shutdown on Q4 revenue - Actual impact was estimated at $12 million to $15 million short due to a strong December performance [110][117] Question: Priorities for cash use - Focus will be on organic growth, followed by opportunistic M&A, and then returning capital to shareholders [69]

Financial Data and Key Metrics Changes - In Q4 2025, the company generated total investment income of $30 million and net investment income of $11.6 million, a decrease from $36.7 million and $15.7 million in Q3 2025 respectively [5][18] - The weighted average portfolio risk rating increased to 2.45 in Q4 2025 from 2.42 in Q3 2025, indicating a slight increase in perceived risk [18] - The total investment portfolio had a fair value of $927.4 million, down 2% from $946 million in Q3 2025 [18][22] - The net asset value (NAV) per share was $13.42 at the end of Q4, a decrease of 1% compared to $13.55 at the end of Q3 2025 [22] Business Line Data and Key Metrics Changes - The company completed 7 investments in new and existing portfolio companies totaling $42.9 million in funded loans during Q4 2025 [6][15] - Notable investments included a $20 million investment in a mobility company and a $10 million investment in a special purpose vehicle for consumer products [16] Market Data and Key Metrics Changes - The company noted ongoing tariff uncertainty, evolving interest rate policy, and geopolitical conflicts as significant market factors affecting operations in 2025 [7][8] - The competitive dynamics in the software and consumer sectors are providing attractive returns, despite the company’s cautious approach to underwriting [33] Company Strategy and Development Direction - The company is focused on enhancing the risk profile of its portfolio through diversification and smaller position sizes, while expanding its suite of financing solutions [8][9] - The acquisition of SWK Holdings is expected to diversify the portfolio and strengthen capabilities in healthcare and life sciences [9][26] - The company aims to maintain a leverage ratio between 1.2 and 1.3, considering economic conditions and capital market volatility [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline for new investments, attributing strength to the partnership with BC Partners and the upcoming SWK acquisition [32] - The company anticipates attractive opportunities across technology, healthcare, and select consumer sectors in the coming quarters [9][11] - Management acknowledged the challenges posed by elevated prepayments and the need for careful portfolio management [20][37] Other Important Information - The company’s total available liquidity was $395.2 million as of December 31, 2025, including unrestricted cash and cash equivalents [24] - The company plans to redeem a portion of its 7.5% notes and all of its 8% notes, which were due in 2027, to enhance its balance sheet [25] Q&A Session Summary Question: Can you discuss the current pipeline and opportunities? - Management noted that the pipeline is stronger than the previous year, driven by BC Partners, with expectations for at least one deal per quarter going forward [32][33] Question: What is the pro forma leverage number post-SWK acquisition? - The leverage ratio post-SWK is expected to be just under 1.2, with a target range of 1.2 to 1.3 moving forward [36] Question: Any updates on the Cadma joint venture? - Management confirmed ongoing efforts with Cadma, expecting the first distribution from the JV in Q2 2026 [39] Question: What changes have occurred in the SWK Holdings portfolio? - The SWK portfolio will include 13 loans with a fair value of around $235 million, alongside equity positions [44] Question: How will the stock repurchase program be affected post-acquisition? - The company plans to revisit the stock repurchase program after the SWK acquisition closes, likely in May [55][56]

Financial Data and Key Metrics Changes - Revenue for 2025 increased by 20% to approximately $2.2 million, compared to $1.86 million in 2024. Excluding a temporary revenue impact from the transition to managing Amazon sales, full-year revenue growth would have been closer to 30% [6][10] - Gross margin improved to 62.5% from 54.1% in 2024, reflecting an improved product mix and a growing contribution from e-commerce channels [10] - The company reported a net loss of $6.4 million for 2025, compared to a net loss of $6.2 million in 2024. Adjusted net loss would have been approximately $5.6 million when excluding one-time legal expenses [10][11] - Adjusted EBITDA loss improved to $5.3 million compared to $5.8 million in 2024 [11] - The company ended the year with $8.6 million in cash and short-term investments, providing a solid operating runway [11] Business Line Data and Key Metrics Changes - E-commerce revenue increased by 88%, driven by strong growth on Amazon and the direct-to-consumer website, now representing more than half of total revenue [8] - Municipal markets are seeing increased interest in fertility control approaches, with ongoing programs in cities like New York and Chicago [8][9] Market Data and Key Metrics Changes - Internationally, the company expanded its footprint with regulatory approvals in New Zealand and distribution relationships in Belize [9] - The company is in discussions with potential deployment partners in New York City as the trial of Evolve concludes [9] Company Strategy and Development Direction - The company's core strategy remains focused on scaling current initiatives and maintaining resource allocation discipline [5] - The board is engaged in finding a new CEO to help scale the business and build on progress made [5] - The company aims to maintain financial discipline while investing in areas with traction, including e-commerce and municipal adoption [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about accelerating growth in 2026, particularly in e-commerce and municipal markets [13][15] - The company is focused on maximizing growth while ensuring profitability [13] - Management is confident in the potential for improvement in financial performance and is preparing for increased demand [45][46] Other Important Information - The legal dispute with Liphatech has been resolved satisfactorily, with all litigation dismissed [10][22] - The company is preparing for a significant year ahead, with expectations for growth in various markets [72] Q&A Session Summary Question: Should we expect similar growth rates in 2026 as in 2025? - Management aims for higher growth rates, particularly in areas where they can maximize profitability [13] Question: What will contribute to 2026 revenues? - Revenue will come from a mix of e-commerce, municipal orders, and international expansion [15] Question: What is the status of the court case with Liphatech? - The case has been settled satisfactorily, and the company considers it a past issue [22] Question: What is the status of product registration in Australia? - Regulatory authorities are expected to provide a response in the spring [25] Question: Will the new CEO have incentives based on stock performance? - Yes, a meaningful portion of the CEO's compensation will be equity-based and aligned with long-term shareholder value [56] Question: How is the agricultural sector performing? - The agricultural sector is expanding, with successes noted in almond groves and poultry [33] Question: Will the company expand its sales team? - Yes, the company plans to expand its sales team to maximize B2B sales efforts [60]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue grew 116% to $71.9 million compared to $33.2 million in the prior year period, driven by strong performance in Life Solutions and higher Asset Management fees [31] - For the full year 2025, revenue increased 110% to $235.2 million compared to $111.9 million in the prior year [31] - Adjusted net income for Q4 2025 grew 71% to $23 million compared to $13.4 million in the prior year [32] - Adjusted EBITDA for Q4 2025 grew 132% to $38.6 million compared to $16.6 million in the prior year, with an adjusted EBITDA margin of 54% [33] - For the full year 2025, adjusted EBITDA increased 115% to $132.6 million compared to $61.6 million for the prior year, with an adjusted EBITDA margin of 56% [34] Business Line Data and Key Metrics Changes - The Life Solutions segment continues to generate impressive revenue growth, contributing significantly to overall revenue increases [31] - The Asset Management segment generated nearly $34 million in management fees in 2025, with over $3 billion in fee-paying AUM [11][31] - The technology services business also contributed to revenue growth, with the flagship product MVerify achieving 4x growth and tracking nearly 3 million lives [12] Market Data and Key Metrics Changes - The company reported a robust capital deployment of $230.7 million in Q4 2025, bringing full year deployment to $580.8 million, up 82% year-over-year [24][30] - The origination platform reviewed more than 10,000 qualified policies during the year, maintaining a close rate of 12% [24] Company Strategy and Development Direction - The company aims to grow recurring revenue from approximately 16% of total revenue today to 70% over the next five years, focusing on building a fee-related earnings base [29] - The strategic acquisition of a minority position in Manning & Napier is expected to create synergies across wealth management and life insurance [14][15] - The company is focused on expanding its asset-based finance strategy, which is projected to be a critical part of AUM expansion [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model and execution, highlighting 11 consecutive quarters of outperformance [5][38] - The company initiated its full year 2026 outlook for adjusted net income to be between $96 million and $104 million, implying growth of up to 22% compared to 2025 [36] - Management noted that the current market environment plays to the company's strengths, with increasing demand for longevity-linked assets [38] Other Important Information - The company has a disciplined capital allocation strategy, with a focus on maximizing long-term shareholder value through share repurchases and dividends [17] - The company launched its inaugural securitization in October, aimed at educating institutions about the asset class [19] Q&A Session Summary Question: Expectations for future securitization size and frequency - Management indicated that demand for securitization has increased and they are targeting a potentially larger securitization than the initial $50 million [44][46] Question: Capital needs and equity issuance - Management stated there is no intent to issue equity for policy purchases, as organic capital generation is sufficient to meet growth needs [51][52] Question: Capital deployment and revenue growth - Management clarified that the capital deployed in Q4 was successful, with a significant portion allocated to ETFs, which typically have lower management fees [56][57] Question: Growth targets and acquisition strategy - Management emphasized that growth will be driven by both organic and acquisition strategies, including the recent investment in Manning & Napier [66][67] Question: Value provided by ABL Tech to various markets - Management explained that ABL Tech offers valuable mortality verification data to pension funds and insurance companies, enhancing their operational efficiency [87]

Financial Data and Key Metrics Changes - The Oncology Institute achieved its first profitable quarter as a public company from an adjusted EBITDA perspective in Q4 2025, with a revenue increase of approximately 28% year-over-year, surpassing $500 million for the first time [4][5] - Total revenue for Q4 2025 was $142 million, representing a 41.6% year-over-year growth, driven by patient growth and pharmacy contributions [20] - Adjusted EBITDA was $147,000 in Q4 2025, improving from -$7.8 million in Q4 2024 [24] Business Line Data and Key Metrics Changes - The fee-for-service business grew 9% year-over-year from $136.2 million to $148.5 million, while the capitation business grew 17.2% year-over-year from $68.7 million to $80.5 million [17] - Pharmacy revenue grew 49.6% year-over-year from $179.9 million to $269.2 million, primarily due to improved prescription attachment rates [18] Market Data and Key Metrics Changes - The company expanded its capitated footprint by initiating 9 new capitated contracts during 2025, adding approximately 260,000 patient lives under management [5] - The partnership with Elevance Health in Florida ramped up, with approximately 70,000 lives under capitated arrangements by the end of 2025 [8] Company Strategy and Development Direction - The Oncology Institute aims to continue scaling its value-based care platform and expects over 80% growth in capitated revenue for 2026 [11] - The company plans to launch a proprietary new network portal in Q2 2026 to enhance engagement with providers and improve operational efficiencies [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow and manage industry-leading medical loss ratio (MLR) performance under its delegated capitation model [13] - The company views the potential lower rate environment for Medicare Advantage as a tailwind, as it allows for proactive engagement with payers seeking to improve care delivery [74] Other Important Information - The company reduced debt on its convertible preferred note by $24 million and ended the year with $33.6 million in cash [8] - The leadership team was strengthened with new appointments, including a Chief Clinical Officer and a Chief Administrative Officer [10] Q&A Session Summary Question: What drove the higher dispensing revenue in Q4? - The strong performance was driven by operational execution in mitigating leakage of prescriptions and strong patient encounter growth related to capitated contract growth [31] Question: Will the Elevance contract double in size in 2026? - Yes, that is the goal [32] Question: What is the size of the total addressable market for Elevance or Humana? - There is significant opportunity for growth, with many multiples of current capitated revenue available in the market [35] Question: Will there be a dip in profit margins due to ramping up capitated contracts? - A slight increase in MLR is expected for delegated contracts, but overall gross margins should not dip [44] Question: Can you provide details on the number of affiliated clinics? - The network has grown to over 200 providers in Florida, bringing the total to close to 300 combined [46] Question: What are the expectations for SG&A in 2026? - Improvements in SG&A as a percentage of revenue are expected, but not to the same degree as in 2025 due to growth investments [65]