Financial Data and Key Metrics Changes - In Q4 2025, the company reported revenue of $6.2 million, exceeding guidance, compared to $6.7 million in Q4 2024, reflecting a decrease due to the exit of lower-margin business [7][11] - Q4 GAAP gross margin improved to 18.1% from -14.9% in Q4 2024, while non-GAAP gross margin rose to 25.6% from -5.2% [7][11] - For fiscal year 2025, revenue was $21.5 million, down $5.1 million from the previous year, with GAAP gross margin at 6.1% and non-GAAP gross margin at 14.3%, both showing significant improvement from fiscal year 2024 [11][12] Business Line Data and Key Metrics Changes - The transition of production from Singapore to Thailand has structurally reduced costs and improved manufacturing efficiency, contributing to margin expansion [5][18] - The company completed its transition to a pure-play IoT company, enhancing focus on high-value IoT opportunities [18][19] Market Data and Key Metrics Changes - The company is scaling production to support IFCO's demand for BLE smart labels, with a capacity target of 100 million units per year [32][24] - The customer-driven opportunities in the pipeline are approximately 25% in healthcare, 25% in logistics, and 25% in food and beverage [36] Company Strategy and Development Direction - The company is focused on its Perform, Accelerate, and Transform strategy, aiming to strengthen core business, drive operational efficiency, and expand margins [3][17] - Strategic partnerships and new product development are key components of the Accelerate strategy, with significant progress in BLE technology and multi-component manufacturing [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting tangible progress made in 2025 and a strong operational foundation for 2026 [17][29] - The company anticipates Q1 2026 sales between $6.7 million and $7.2 million, reflecting a 26%-35% increase over Q1 2025 [15][16] Other Important Information - The company exited Q4 2025 with $128.9 million in cash equivalents, indicating a strong balance sheet [13][14] - The board has taken shareholder-friendly actions, including the declassification of the board and the addition of a financial expert [28][29] Q&A Session Summary Question: Insights on the IFCO opportunity and revenue potential - Management is excited about the IFCO project, with plans to scale up to 100 million units per year, and while specific pricing and gross margins were not disclosed, it is expected to be higher than average product pricing [32][33] Question: Breakdown of the new opportunity pipeline by end market - The current pipeline consists of approximately 25% healthcare, 25% logistics, and 25% food and beverage opportunities [36] Question: Contribution of gross margin drivers in 2026 - Management anticipates near-term variability in gross margins as they scale for the IFCO project and onboard a new customer, but expects overall margin expansion as they progress through 2026 [45][48]

Financial Data and Key Metrics Changes - For the full year 2025, the company facilitated 97,348 certified loans and recorded total revenue of $93.2 million, resulting in adjusted EBITDA of $15.6 million [7] - In the fourth quarter, the company facilitated 19,308 loans, generating revenue of $19.3 million and adjusted EBITDA of $2.8 million [7][31] - Operating expenses decreased to $13.9 million in the fourth quarter compared to $15.4 million in the same period of 2024, representing a 9.3% year-over-year decrease [33] - Net income for the fourth quarter was $1.7 million, compared to a net loss of $144 million in the fourth quarter of 2024 [33] Business Line Data and Key Metrics Changes - The company launched the ApexOne Auto platform in the fourth quarter, which is expected to enhance its offerings and increase application flow [15][16] - The profit share unit economics for the 2025 vintage continue to be booked at a constrained 72.5% loss ratio, with expectations to perform closer to a mid-60s% loss ratio [15][33] - The company has seen improved performance in the 2025 vintage, with over 60-day delinquency rates approximately 200 basis points lower than the 2023 and 2024 vintages [8] Market Data and Key Metrics Changes - The loan-to-share ratio for credit unions was reported at 83.2% in the fourth quarter of 2025, indicating a healthy environment for growth [18] - The company noted a 20% year-over-year increase in application flow through February 2026 [10] Company Strategy and Development Direction - The company aims to stabilize the business and position it for durable growth by improving profitability, reducing volatility in profit share revenue, and strengthening operational execution [4] - The introduction of the ApexOne Auto platform allows the company to operate across the full credit spectrum, enhancing its market position [16] - The company is focused on disciplined risk management and pricing strategies to avoid elevated defaults and maintain long-term profitability [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture growth opportunities in 2026, driven by improved credit union health and the anticipated ramp-up of the ApexOne Auto platform [23][24] - The company expects certified loan guidance of 100,000-110,000 for 2026, with adjusted EBITDA guidance of $25 million-$29 million [24][39] - Management emphasized the importance of maintaining discipline in underwriting and pricing to ensure long-term relevance and shareholder value [28] Other Important Information - The company paid down approximately $50 million of its senior secured term loan in the fourth quarter, which is expected to result in quarterly interest savings of approximately $575,000 [25][37] - The company repurchased approximately 564,000 shares at an average price of $66 per share during the quarter [25][38] Q&A Session Summary Question: Thoughts on AI disruption and opportunities - Management acknowledged the use of AI in their tools and models, emphasizing that their proprietary data and machine learning capabilities are superior to standard AI tools [41][44] Question: Cert outlook for Q1 and 2026 - Management explained that the first quarter's lower certs are influenced by the elimination of super thins and tighter credit standards, but they expect growth to ramp up incrementally throughout 2026 [45][47] Question: Health of the credit union channel - Management reported that credit unions are looking to grow in a disciplined manner, with loan-to-share ratios improving, and they are working to help credit unions respond more quickly to rate changes [56][58] Question: Current outlook for delinquencies - Management indicated that delinquencies for the most recent vintage are running about 200 basis points better than previous years, reflecting the effectiveness of their tighter underwriting standards [66][67]

PagerDuty (NYSE:PD) Q4 2026 Earnings call March 12, 2026 05:00 PM ET Company ParticipantsHoward Wilson - CFOJennifer Tejada - Chairperson and CEOKingsley Crane - Managing Director of Equity ResearchMiller Jump - Equity Research AssociateSanjit Singh - Executive DirectorVijay Homan - Equity Research AssociateConference Call ParticipantsGeorge McGreehan - Equity Research AnalystOperatorGood afternoon, and thank you for joining us to discuss PagerDuty's fourth quarter and full-year fiscal 2026 results. With me ...

Financial Data and Key Metrics Changes - The company reported approximately $690,000 in revenue from continuing operations for fiscal year 2025, entirely generated from the TrueCut Motion platform and related motion grading services [28] - The cash balance at the beginning of 2026 was approximately $62 million, following the sale of the Shanghai subsidiary [8][30] - The company anticipates a cash and cash equivalents balance of approximately $58 million as of March 31, 2026, providing ample runway for executing its strategy [33] Business Line Data and Key Metrics Changes - The company has transformed into a global technology licensing business focused on cinematic visualization solutions, eliminating the semiconductor hardware business [11][12] - The current portfolio includes over 60 issued and pending patents related to the TrueCut Motion grading platform and broader visual enhancement technologies [14] Market Data and Key Metrics Changes - The company is focusing on expanding its presence in premium large format (PLF) theaters, which are increasingly allocating capital expenditures to enhance theatrical experiences [18] - Partnerships with major theater chains like Marcus Theatres and Odeon Cinemas Group have been established to prioritize TrueCut Motion across their premium screens [19][20] Company Strategy and Development Direction - The immediate strategic focus is on enabling additional premium large format theatrical experiences and building a profitable licensing business centered around cinematic and visual enhancement solutions [25] - The company aims to license its technology to third parties for motion grading work, expanding its market reach [60] Management's Comments on Operating Environment and Future Outlook - Management believes there is a large market opportunity for motion grading technology, especially with the growing demand for premium theatrical experiences [22] - The company is committed to maintaining a robust balance sheet and managing resources prudently as it builds its licensing business [25] Other Important Information - The company has taken steps to streamline operations, including reducing headcount and restructuring, which will result in lower operating expenses of approximately $2 million per quarter starting in the second quarter [36][37] - The previously pending tax matter in China is expected to be resolved, with an additional $1.2 million in cash proceeds anticipated from escrow [32] Q&A Session Summary Question: What are the best near-term opportunities for driving revenue? - The company’s business model involves creating cinematic high frame rate content under the TrueCut Motion brand, with revenue generated from content creation, although it is currently subsidized to encourage engagement from content creators [40][41] Question: What is the margin structure and break-even revenue opportunity? - The company expects high gross margins on revenue from content creation and licensing, with a focus on maintaining a lean operation [47] Question: How is the pipeline formed today and what metrics will track progress? - Progress will be gauged by the expansion of the exhibitor footprint and the amount of premium content delivered to theaters [49] Question: What are the top priorities for 2026? - Key priorities include licensing the technology for third-party motion grading work and developing demand for the technology [60]

Financial Data and Key Metrics Changes - Revenue for the fourth quarter was $58.9 million, a 16% decrease year-over-year and a sequential decrease of 7% compared to the third quarter [14] - Gross profit dollars totaled $9.1 million, a decline of 15% year-over-year and a sequential decline of 21%, resulting in a gross margin of 15.5% [16] - SG&A expenses were $7.7 million, a 24% reduction year-over-year and a 17% reduction sequentially [20] Business Line Data and Key Metrics Changes - The decline in revenue was primarily driven by clients in the industrial end market and the divested mall-related business, accounting for a $10.7 million reduction in quarterly revenue [14][15] - Despite challenges, the remaining two-thirds of the business saw modest growth of $7.4 million, or about 5% [15] Market Data and Key Metrics Changes - The company observed a soft volume environment affecting industrial customers, with no loss of customers reported [5][6] - New business pipeline has been impacted by economic uncertainty, leading to elongated sales cycles [7] Company Strategy and Development Direction - The company is focused on operational excellence initiatives to drive efficiencies and improve financial performance as market conditions normalize [8][13] - There is an emphasis on expanding wallet share with existing customers and onboarding new clients, particularly in non-industrial markets [10][13] Management Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 was a challenging year due to volume declines from the industrial end market, but expressed confidence in future performance as macroeconomic conditions improve [12][26] - The company is well-positioned to accelerate financial performance and drive shareholder value as conditions improve [27] Other Important Information - The company generated over $1 million in cash from operations and $1.7 million of free cash flow in the fourth quarter [21] - A refinancing of the ABL with Texas Capital Bank was completed to improve financing costs and provide greater flexibility [24] Q&A Session Summary Question: Update on KPIs and operational efficiency - Management reported that KPIs and operational efficiency initiatives are on track, with positive trending despite the difficult volume environment [29][30] Question: Health of the vendor network - Management indicated that vendor relationships have improved, with vendors accepting payment to term and experiencing the lowest service disruptions in history [31][32] Question: Opportunities for cross-selling and market share expansion - Management noted that if industrial clients expand operations, the company stands to benefit due to strong relationships with these clients [35]

Financial Data and Key Metrics Changes - Fourth quarter revenues reached $290 million, an increase of 9% year-over-year, with a gross profit percentage of 23%, up four percentage points from the prior year [8][19] - Full year consolidated revenues were $1.069 billion, an increase of $26 million or 2%, with a gross profit percentage of 22%, up from 19% in the previous year [9][24] - GAAP net loss for the fourth quarter was $108 million compared to a net income of $26 million in the fourth quarter of 2024, primarily due to excise tax expenses and a loss on early debt extinguishment [20][25] Business Line Data and Key Metrics Changes - The AM&C segment saw a revenue increase of 25% in the fourth quarter, driven by the launch of a direct distribution brand of still films [10] - The print division experienced growth, particularly in North America, with the PROSPER 520 moving to full production and investments in new service systems [11] - Brand licensing continues to grow, contributing significantly to profit and increasing awareness of Kodak among younger consumers [11] Market Data and Key Metrics Changes - The company reported a strong performance in both the AM&C and print segments, indicating a balanced contribution to overall growth [8] - The film group has seen a resurgence, with notable films shot on Kodak film, enhancing brand visibility [10] Company Strategy and Development Direction - Kodak's long-term plan remains on track, focusing on growth following a strong 2025, with a commitment to customer-first strategies [29] - The company has streamlined operations, reduced debt, and invested in new products, positioning itself for future growth [7][30] - Investments in the pharma division and battery coating are part of Kodak's strategy to diversify and strengthen its market position [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging global environment but highlighted strong financial results and operational improvements [19] - The company is focused on sustainable value creation and enhancing long-term stability through strategic decisions [22] - Kodak's leadership emphasized the importance of a strong balance sheet and the ongoing commitment to growth [29][32] Other Important Information - Kodak completed a pension reversion process that generated approximately $1.023 billion, significantly strengthening its balance sheet and reducing ongoing interest expenses [13][14] - The company ended 2025 with $337 million in unrestricted cash, reflecting operational improvements and proceeds from the KRIP settlement [27] Summary of Q&A Session - There was no formal Q&A session during the call, but the investor relations team is available for follow-up inquiries [4]

Financial Data and Key Metrics Changes - As of December 31, 2025, the company reported cash equivalents and investments of $258.3 million, with an additional $23.7 million received from a favorable arbitration outcome [15][16] - The net loss for Q4 2025 was $38.8 million, or $0.17 per share, while the full year net loss was $189.9 million, or $0.87 per share [17][18] - Research and development expenses for Q4 2025 were $28.6 million, totaling $150.2 million for the full year [16][18] Business Line Data and Key Metrics Changes - The focus for 2026 is on delivering clinical milestones for two key programs: cema-cel in ALPHA3 and ALLO-329 in RESOLUTION [5][10] - ALPHA3 aims to redefine management of large B-cell lymphoma by testing early MRD-guided consolidation with allogeneic CAR T therapy [10][11] - ALLO-329 is designed for autoimmune diseases, with initial proof of concept data expected in June 2026 [12][14] Market Data and Key Metrics Changes - The company is expanding its clinical trials into community cancer centers, which have historically been excluded from offering CAR T therapies [11][12] - Over 60 active sites across the U.S. and Canada are involved in the ALPHA3 study, with plans for expansion into Australia and South Korea [11][12] Company Strategy and Development Direction - The company aims to validate its allogeneic platform as a scalable and accessible cell therapy option [5][8] - There is a focus on disciplined execution and prioritization of resources towards programs with the greatest potential [8][14] - The company is positioned to execute through critical proof points in 2026, with a cash runway extended into the first quarter of 2028 [8][18] Management's Comments on Operating Environment and Future Outlook - Management believes the cell therapy environment is shifting towards evidence-based outcomes, emphasizing data and disciplined execution [5][6] - The company is optimistic about the potential of its allogeneic CAR T therapies to expand access and improve patient outcomes [5][8] - Management is focused on generating data that clearly defines the role of allogeneic CAR T in oncology and autoimmune diseases [14][18] Other Important Information - The company has made prudent use of its ATM equity facility, raising an additional $20.7 million year to date [15][16] - Guidance for operating cash expenses in 2026 is expected to be approximately $150 million, with GAAP operating expenses around $210 million [18] Q&A Session Summary Question: Can you elaborate on the safety parameters for the ALPHA3 data update? - Management plans to provide high-level safety information, focusing on serious adverse events and outpatient delivery feasibility [22][23] Question: What read-throughs do you have from the recent ZUMA-7 MRD analysis? - Management views the ZUMA-7 study as consistent with their expectations for MRD clearance and its correlation to clinical outcomes [26][27] Question: What is the expected rate of spontaneous MRD conversion in the observation arm of ALPHA3? - Management has modeled a spontaneous clearance rate of about 20%, expecting 2-3 patients to potentially convert from MRD positive to negative [46][50] Question: How many community centers in the ALPHA3 study had prior CAR T or transplant capabilities? - Approximately 50% of the sites are community practices, with some being CAR T naive and successfully enrolling patients [62][63] Question: Will you present data on CD70 positive T cell depletion in ALLO-329? - Management indicated that translational data will be collected and analyzed, focusing on the 20 million cell dose level [68][70]

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 [32] - For the full year 2025, revenue increased 110% to $235.2 million compared to $111.9 million in the prior year [32] - Adjusted net income for Q4 2025 grew 71% to $23 million compared to $13.4 million in the prior year [33] - Adjusted EBITDA for Q4 grew 132% to $38.6 million compared to $16.6 million in the prior year, with an adjusted EBITDA margin of 54% [34] - For the full year 2025, adjusted EBITDA increased 115% to $132.6 million compared to $61.6 million for the prior year [34] - 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 full year 2025 [36] Business Line Data and Key Metrics Changes - The Life Solutions segment continues to generate impressive revenue growth, contributing significantly to overall revenue increases [32] - The asset management segment generated nearly $34 million in management fees in 2025, with over $3 billion in fee-paying AUM [11][29] - The technology services business also contributed to revenue growth, with the flagship product MVerify achieving 4x growth [12] Market Data and Key Metrics Changes - The company reported a robust capital deployment of $230.7 million in Q4 2025, up 82% year-over-year, bringing full year deployment to $580.8 million [25][31] - The origination platform reviewed more than 10,000 qualified policies during the year, maintaining a close rate of 12% [25] Company Strategy and Development Direction - The company aims to grow its recurring revenue from approximately 16% of total revenue today to 70% over the next five years, focusing on building a fee-related earnings base [30] - The strategy is built on four integrated verticals: Life Solutions, Asset Group, Data and Technology, and Wealth Advisors, creating a comprehensive ecosystem [9][10][14] - The recent acquisition of a minority position in Manning & Napier is expected to create synergies across wealth management and life insurance [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model and execution, highlighting 11 consecutive quarters of outperformance [4][38] - The current market environment is seen as favorable, with increasing demand for longevity-linked and asset-backed strategies [22] - The company recognizes the disconnect between its fundamentals and current valuation, viewing it as an opportunity for growth [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 [18] - The securitization strategy is expected to create additional financing and distribution channels, enhancing capital efficiency [19] Q&A Session Summary Question: Investor demand for securitization - Management noted that demand for securitization has increased, with expectations for a larger offering in the first half of 2026 [42][44] Question: Capital needs and equity issuance - Management confirmed no intent to issue equity for policy purchases, citing strong organic capital generation [50] Question: Capital deployment and revenue growth - Management explained that capital deployed in Q4 was successful, with a focus on maximizing returns through strategic policy management [55] Question: ABL Tech's value proposition - Management highlighted the value of proprietary mortality data for pension funds and insurance companies, emphasizing the accuracy and speed of their data services [87][88]

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 [5][20] - Q4 total revenue was $254 million, growing 21% year-over-year, while subscription revenue reached $192 million, up 23% year-over-year [20][21] - Q4 gross transaction volume (GTV) was $19.8 billion, reflecting a 16% year-over-year growth [20] - Q4 platform gross margin improved to 80%, an increase of 330 basis points year-over-year [22] - Q4 operating income was $27.1 million, resulting in an operating margin of 10.7%, an improvement of 740 basis points year-over-year [23] - Q4 free cash flow was $35 million, up from $11 million in the prior year [23] Business Line Data and Key Metrics Changes - Subscription revenue growth was driven by strong performance in Pro, commercial, and new trades [21] - Professional services revenue for Q4 was $8.9 million, with net dollar retention exceeding 110% for the quarter [22] - The company exited FY 2026 with approximately 10,800 total active customers, a 14% increase year-over-year [22] Market Data and Key Metrics Changes - The company noted that GTV contribution from new customers remained consistent, but existing customer growth was impacted by one fewer business day and unusual weather conditions [20] - The commercial capabilities introduced have been well-received, laying the foundation for go-to-market execution in FY 2027 [16] 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 [13][19] - The strategic goals for FY 2027 include executing multi-year growth factors, advancing the agentic operating system, and improving operational velocity [13] - The company is expanding its Max program, which integrates AI capabilities to enhance customer outcomes and drive revenue growth [11][12] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of AI in removing constraints and automating workflows, which is expected to enhance customer outcomes significantly [7][10] - The management expressed confidence in the company's ability to attract world-class talent and invest in R&D to capitalize on growth opportunities [29][19] - The company anticipates continued strength in free cash flow and plans to invest aggressively in AI and internal tooling [25][23] Other Important Information - The company has made significant progress in its commercial and roofing initiatives, with positive customer feedback and growth in these segments [16][17] - The new Chief Technology and Product Officer, Abhishek Mathur, is expected to drive improvements in product development and execution velocity [19] Q&A Session Summary Question: Impact of weather on Q4 results and Q1 guidance - Management noted that Q4 was warmer overall, but an ice storm in the last week affected technician availability, impacting GTV growth [27] Question: Incremental margins and future expectations - Management explained that the high incremental margins were due to overperformance in usage and timing of hiring, with expectations for significant R&D investment in FY 2027 [29] Question: Sales capacity and growth potential - Management indicated that while there are opportunities to invest in sales, there are natural limits to growth due to the complexity of switching solutions [32] Question: Update on commercial business and competitive dynamics - Management confirmed that the commercial segment is on track, with positive customer feedback and successful onboarding [34] Question: Scaling the Max program - Management emphasized that the Max program is seen as the future of the company, focusing on establishing product-market fit before scaling [38] Question: Adoption curve for Max and customer segments - Management stated that the Max program is applicable to customers of all sizes, with a focus on mature markets for initial rollout [96]

Financial Data and Key Metrics Changes - Fourth quarter net revenue was $118 million, a decline of 19% year-over-year compared to $446.1 million in the prior year period [15] - Full year net revenue was $319.9 million, a decline of 14% year-over-year compared to $372.8 million in 2024 [16] - Fourth quarter gross margins reached 40.1%, an improvement of nearly 310 basis points year-over-year [15] - Full year gross margins of 37.3% represented an improvement of 270 basis points year-over-year, marking the highest annual level since 2018 [16] - Net income for the fourth quarter was $17.6 million, compared to $20.1 million in the prior year period [15] - Full year net income was $15.7 million, representing a 3% year-over-year decline compared to $16.2 million in 2024 [17] Business Line Data and Key Metrics Changes - The company gained share in its core Turtle Beach headset brand despite overall market softness [5] - The company is launching over 50% more new products in 2026 compared to 2025, with significant releases beginning in Q2 [7][8] - The racing sim product line is performing well, with share gains year-over-year [25] Market Data and Key Metrics Changes - The North American gaming and accessories markets experienced unexpected softness [5] - The company anticipates a strong replacement cycle driven by major game releases, particularly Grand Theft Auto VI, scheduled for late 2026 [6][19] - The industry is entering a console refresh cycle with new platforms expected from major manufacturers [7] Company Strategy and Development Direction - The company implemented comprehensive cost optimization initiatives that drove gross margin expansion [8] - A strategic refinancing of debt lowered the base interest rate on the term loan by approximately 450 basis points, generating annual interest savings of over $2 million [10] - The company is actively assessing opportunistic bolt-on acquisitions to complement its growing platform [12] - The focus for 2026 is to leverage operational gains while positioning for growth as market conditions improve [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the business as it navigates through current market headwinds [7] - The company expects full year 2026 revenue to be in the range of $335 million-$355 million, representing 8% growth at the midpoint compared to 2025 [19] - Management believes the pressures faced in 2025 were cyclical and used the year to strengthen execution and foundation [21] Other Important Information - The company repurchased approximately 1.35 million shares for about $19 million in 2025, returning nearly $47 million to shareholders over the past two years [11][18] - A new 2-year $75 million share repurchase program was authorized, the largest in company history [11] Q&A Session Summary Question: How are the racing sim products performing and what about the 50% more products for 2026? - The racing sim category is performing well with share gains, and the 50% increase in SKUs will be across all categories, including exciting innovations in headsets [25][26] Question: Can you provide a revenue range related to GTA VI? - The second half of the year is expected to be strong, with guidance built on the assumption of GTA VI launching in Q4 [30] Question: What are the expectations for gross margin versus OpEx in 2026? - Continued improvements in gross margin are expected, with a similar OpEx structure to 2025, including investments in technology and brand [35] Question: What is the outlook for retail inventories? - The company ended the year with a lighter inventory position, but does not anticipate further declines in channel inventories [47] Question: What is the leverage threshold comfortable for the company? - A leverage range of 2-2.5 is considered comfortable, with potential for additional financing to enhance flexibility [56] Question: What are the drivers of optimism beyond GTA VI? - Multiple factors contribute to optimism, including an overdue accessories replacement cycle and new product innovations [63]