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 - 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 - Consolidated operating income was approximately $800 thousand in Q4 2025, down from $1.5 million in Q4 2024, impacted by $400 thousand in M&A-related expenses [6][9] - Revenue increased to $11.9 million in Q4 2025 from $10.8 million in Q4 2024, while adjusted EBITDA decreased to $1.1 million from $2.1 million [9][10] - Net income was approximately $300 thousand or $0.01 per diluted share in Q4 2025, compared to a loss of approximately $200 thousand or $0.01 per diluted share in Q4 2024 [9][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 $800 thousand in the prior year [6][7] - The financial assets division reported operating income of approximately $900 thousand in Q4 2025, down from $1.9 million in the prior year [6][9] - The ALT segment within the industrial assets division reported operating income of $538 thousand in Q4 2025, compared to $276 thousand in the prior year [7] 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 [8][9] - The DebtX acquisition is anticipated to enhance capabilities in the financial asset segment, with expectations of accretive contributions in 2026 [9][10] Company Strategy and Development Direction - The company is focusing on aggressive M&A opportunities, having recently completed the DebtX acquisition, and aims to define 2026 as a year of significant transactions [5][9] - A new facility has been opened to increase auction activity and operational efficiency, allowing for personnel expansion [4][8] - The company is optimistic about the upcoming year, indicating a shift from a cautious approach to more aggressive asset flows and transactions [3][5] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a year of smaller transactions due to economic uncertainty, but there is optimism for larger deals in 2026 as companies are expected to move forward with asset sales [3][25] - The sentiment among the business development team is positive, indicating confidence in achieving strong performance in 2026 [12] 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 [10][11] - The company plans to resume share repurchases, having authorized a new program for up to $7.5 million in common stock [11] Q&A Session Summary Question: Clarification on DebtX acquisition accretion - Management expects the DebtX acquisition to be accretive on both operating income and net income bases, with standalone results indicating $800,000 in operating income for DebtX in 2025 [14][17] Question: Seasonality in DebtX's business - DebtX typically experiences strong performance in Q4, driven by banks' desire to clean up their portfolios [18] Question: Exposure to private credit market - The DebtX acquisition is linked to challenges in the commercial real estate market, with expectations of growth in both DebtX and NLEX segments as assets come to market [20] Question: Outlook for larger transactions in 2026 - Management indicated that there is a positive outlook for larger transactions in 2026, with signs of increased activity in Q1 [25][29] Question: Specialty lending performance - The modestly negative performance in specialty lending was attributed to a lack of funding for larger loans, with plans to increase lending in 2026 [30]

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 [7][18] - 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 [8][22] 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 [9] - The print division experienced growth, particularly in North America, with the PROSPER 520 moving to full production and investments in new service systems [10] Market Data and Key Metrics Changes - Brand licensing continues to grow, contributing significantly to profit and increasing awareness of Kodak among younger consumers, especially in Asia [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 and diversified industrial manufacturing [5][28] - The company has streamlined operations, reduced debt, and invested in new products, positioning itself for future growth [6][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from global economic and geopolitical uncertainties but highlighted strong financial results and operational improvements [18] - The company is focused on growth, with a strong balance sheet and plans to further reduce long-term debt [29] Other Important Information - Kodak completed a pension reversion process generating approximately $1.023 billion, which strengthened its balance sheet and reduced ongoing interest expenses [12][13] - The company ended 2025 with $337 million in unrestricted cash, significantly improving its liquidity position [15][26] 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 - Total revenue for the full year 2025 was $185.3 million, down 2% year-over-year from $189.9 million in 2024 [9] - Advertising revenue declined 3% to $91.7 million, while programmatic advertising grew 7% to $69.6 million, representing 76% of total advertising revenue [9] - 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 [10] - Adjusted EBITDA improved 61% to $8.8 million compared to $5.5 million in 2024 [10] Business Line Data and Key Metrics Changes - Studio revenue nearly tripled to $16.1 million, driven by the delivery of three feature films and contributions from the micro drama vertical [9] - Content revenue increased 9% to $37 million, while direct sold advertising declined 25% to $22.1 million [9] - Commerce and other revenue declined 8% to $56.5 million, with affiliate commerce declining 7% to $55.5 million [10] Market Data and Key Metrics Changes - Time spent totaled 276.5 million hours, down 7% year-over-year, attributed to elevated engagement during the presidential election cycle in 2024 [11] - Q4 revenue was $56.5 million, up 1% year-over-year, with advertising revenue increasing slightly to $25.6 million [12] - Programmatic advertising grew 2% to $18.4 million, while direct sold advertising declined 3% to $7.2 million [13] 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 the intrinsic value of its assets, particularly through innovative work in AI and new product experiences [8] - The company is exploring strategic options to unlock value and address liquidity challenges, with an update on strategic direction and financial outlook expected in the coming quarters [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by legacy costs and a pessimistic view of digital media, but believes in the potential of unlaunched products and forthcoming features [5] - The company plans to demonstrate the value of its assets in concrete ways throughout the year, particularly through new apps and AI-driven experiences [7] - Guidance for 2026 is being withheld due to ongoing evaluations of strategic opportunities [15] Other Important Information - The company ended the year with cash and cash equivalents of approximately $27.7 million, a decrease of $10.9 million compared to 2024 [11] - Total debt as of December 31, 2025, was $60.2 million, with $45 million in term loans and $15.2 million in film financing arrangements [12] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

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]

Financial Data and Key Metrics Changes - Fiscal Q1 2026 revenue totaled $278.6 million, down 17% from the prior year, driven by a 30% decrease in pricing due to higher industry supply from Mexican fruit [16][19] - Despite lower revenue, gross profit remained consistent at $31.6 million, leading to a gross margin increase of 190 basis points to 11.3% compared to the same period last year [16][17] - Adjusted net income for the quarter was $7.3 million, or $0.10 per diluted share, consistent with prior year results [18] - Adjusted EBITDA increased 5% to $18.5 million compared to $17.7 million last year, driven by higher avocado volume sold and improved per unit margins [19] Business Line Data and Key Metrics Changes - The Marketing and Distribution segment net sales decreased 21% to $234.8 million, but adjusted EBITDA increased 33% to $12.9 million due to higher avocado volume sold and solid per unit margins [19] - International Farming segment total sales increased 15% to $10.6 million, with adjusted EBITDA increasing 28% to $2.3 million due to improved pack house utilization [20] - Blueberry segment total sales increased 12% to $40.8 million, but adjusted EBITDA decreased to $3.3 million due to lower per acre yields impacting profitability [22] Market Data and Key Metrics Changes - Household penetration of avocados reached approximately 72%, with per capita consumption nearly tripling over the past two decades, indicating strong demand trends [6][7] - The broader demand environment for avocados continues to trend positively, supported by health and wellness trends and the inclusion of avocados in USDA dietary guidelines [6][7] Company Strategy and Development Direction - The company is focused on volume-centric growth and improving per unit margins, with a strong emphasis on customer relationships and operational efficiency [5][6] - The pending acquisition of Calavo is viewed as a strategic opportunity to enhance the core avocado business and expand into prepared foods, with expected annualized cost synergies of at least $25 million [9][12] - The company aims to balance reinvestment in the business with returning capital to shareholders, with a long-term capital allocation strategy under development [14][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning and growth potential, despite navigating a lower pricing environment and supply dynamics in the near term [27] - The company anticipates a 10%-15% increase in avocado industry volumes for Q2 2026, but expects lower pricing and potential margin compression [24][25] - Management remains optimistic about the long-term demand for avocados and the strategic benefits of the Calavo acquisition [27] Other Important Information - Cash and cash equivalents were $44.8 million as of January 31, 2026, down from $64.8 million as of October 31, 2025 [22] - Capital expenditures for the quarter were $11.9 million, with expectations of approximately $40 million for the full fiscal year [23] Q&A Session Summary Question: Insights on Calavo acquisition and synergy realization - Management remains confident in the $25 million synergy estimate and sees opportunities for further upside, focusing on cost structure and operational efficiencies [30][32] Question: Impact of volume throughput on fixed cost deleveraging - The majority of costs are variable, and while lower prices compress margins, increased volumes can help manage fixed costs [36][39] Question: Timeline for blueberry farms reaching full productivity - Full productivity for newer blueberry acreage is expected in 12-18 months, with improved margins anticipated as yields stabilize [44][46] Question: Long-term capital allocation strategy - The company is prioritizing debt management while also considering returning capital to shareholders as free cash flow increases [49][51]

Financial Data and Key Metrics Changes - The Oncology Institute achieved approximately 28% year-over-year revenue growth, surpassing $500 million for the first time in its history, with total revenue reaching $502.7 million in 2025 compared to $393.4 million in 2024 [5][17] - The company reported its first profitable quarter as a public company from an adjusted EBITDA perspective in Q4 2025, with adjusted EBITDA of $147,000, improving from a loss of $7.8 million in Q4 2024 [4][23] - SG&A expenses decreased by 2% year-over-year, reflecting operational efficiency, with total SG&A at $28 million or 19.7% of revenue in Q4 2025, down from 24.8% in the prior year [6][22] 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% from $68.7 million to $80.5 million, driven by the new delegation model in Florida [17] - Pharmacy revenue increased by 49.6% year-over-year from $179.9 million to $269.2 million, primarily due to improved prescription attachment rates [18] - Patient services revenue, including capitation and fee-for-service, totaled $59.8 million in Q4 2025, representing 42.2% of total revenue and a 19.2% increase year-over-year [20] Market Data and Key Metrics Changes - The company expanded its capitated footprint by initiating 9 new capitated contracts in California, Florida, and Nevada, adding approximately 260,000 patient lives under management [5] - The partnership with Elevance Health in Florida is expected to double in size in 2026, with approximately 70,000 lives currently under capitated arrangements [8][32] - The Florida Oncology Network platform grew to approximately 207 participating providers, supporting a hybrid model of patient care [10] Company Strategy and Development Direction - The Oncology Institute aims to continue scaling its value-based care platform to serve more patients and payers while improving access to therapeutics and reducing financial burdens [11] - The company plans to launch a proprietary new network portal in Q2 2026 to enhance engagement with providers and improve utilization management [11] - The leadership team was strengthened with new appointments, including a Chief Clinical Officer and a Chief Administrative Officer, to support growth strategy execution [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year positive adjusted EBITDA in 2026, driven by strong growth in the delegated capitation model [4][11] - The impact of the Inflation Reduction Act on the company's revenue is expected to be minor, with multiple levers available to offset any unfavorable effects [14][15] - The company believes it is well-positioned to expand payer partnerships and deliver sustainable profitability over the long term [13] Other Important Information - The company ended 2025 with $33.6 million in cash and positive free cash flow in Q4, providing flexibility for growth [7][23] - The company expects revenue in the range of $630 million to $650 million for 2026, with approximately $150 million from capitated revenue [24] Q&A Session Summary Question: What drove the higher dispensing revenue in the quarter? - The strong performance was driven by operational execution in mitigating leakage of scripts and strong patient encounter growth related to capitated contract growth [29][30] Question: Will the Elevance contract size double in Florida in 2026? - Yes, that is the goal [32] Question: Is the Humana contract new or an expansion? - The Humana contract went effective in Q4 2025 and is a new partnership [33] Question: What is the total addressable market for Elevance or Humana? - There is significant opportunity for growth in Florida, with many multiples of current capitated revenue available [34][35] Question: How are margins looking for capitated revenue? - Performance in terms of volume and MLR is as expected, with no surprises [36] Question: Will there be a dip in profit margins due to ramping up capitated contracts? - A slightly higher MLR is expected for delegated contracts, but no dip at the aggregate level [44] Question: Can you provide details on the number of affiliated clinics? - The network is larger than previously reported, with over 200 providers in Florida, totaling close to 300 combined [46] Question: Will CAR T therapies be added to treatment offerings? - Currently, the company does not take risk on CAR T therapies due to low incidence and limited availability [47] Question: What are the expectations for SG&A in 2026? - Improvements in SG&A are expected, but not to the same degree as in 2025, as investments for growth will continue [65]

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $688 million, up 6% year-over-year, primarily due to an extra week contributing $45 million [8][16] - Adjusted EBITDA for Q4 was $68 million, and adjusted earnings per share was $0.12, an increase of $0.03 from the prior year [18][19] - Same-center occupancy was 64.5%, down 340 basis points from the previous year [8][17] - For the full year 2025, revenue increased 2.6% to $2.73 billion, and adjusted EBITDA increased just under 1% to $300 million [19][20] Business Line Data and Key Metrics Changes - KinderCare accounted for 88% of total revenue and remains the core driver of overall performance [8] - The Champions brand contributed 8% to total revenue in 2025, with revenue of $60 million in Q4, up 12% year-over-year [9][17] - Crème de la Crème contributed 4% to total revenue during the year, with a focus on brand repositioning and enrollment growth [9][10] Market Data and Key Metrics Changes - The market remains highly fragmented, with the three largest providers making up less than 5% of the total market [9] - Enrollment trends in Q4 were consistent with expectations, with lower overall enrollment offsetting tuition growth [16][20] Company Strategy and Development Direction - The company aims to improve execution and accountability across the organization, focusing on growth and operational efficiency [5][11] - A strategic reset of the KinderCare brand is underway, with increased marketing investments and operational consistency [10][12] - The company plans to expand its B2B partnerships and employer-sponsored centers, which have shown strong growth potential [10][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from inflation and declining consumer confidence affecting affordability for customers [6][8] - The company expects revenue for 2026 to be between $2.7 billion and $2.75 billion, with adjusted EBITDA projected to be $210 million to $230 million [24][25] - Management is optimistic about stabilizing occupancy and improving performance in lower-performing centers [29] Other Important Information - The company reported a net loss of $177 million in Q4 due to a non-cash goodwill impairment charge [18][22] - SG&A expenses as a percentage of revenue were 10.7%, down from the previous year, reflecting improved cost management [19] Q&A Session Summary Question: What are the key factors causing the drop in EBITDA margins? - Management noted that the extra $12 million from the 53rd week in 2025 will not recur, and lower occupancy expectations are impacting margins [31][32] Question: What are the top priorities to achieve growth initiatives? - Management emphasized focusing on KinderCare, clearing distractions for center directors, and increasing investment in paid search [33][36] Question: What is the revenue contribution from M&A for the quarter? - Revenue from acquired centers was $6.2 million in Q4, totaling $14.9 million for the full year [41] Question: What is the enrollment outlook for the year? - Management expects enrollment to improve gradually, with significant marketing efforts and operational focus on inquiries [44][78] Question: How does the company view the structural health of the industry? - Management believes larger providers will continue to gain share as smaller providers face challenges, with a potential contraction in the market [52][56]

Financial Data and Key Metrics Changes - Revenue for the 12-month period grew 12% year-over-year, reaching BRL 3,697 million, with adjusted EBITDA growth of over 50% year-over-year, reaching BRL 1,680 million [4][5] - Adjusted EBITDA margin for the same period reached 45.4%, an increase of 130 basis points over last year [4][5] - Net income reached BRL 768.4 million, an 18% growth year-over-year, with basic EPS reaching BRL 8.32, a 19% increase compared to last year [5][27] - Cash flow from operating activities ended the 12-month period at BRL 1,548 million, over 6% higher than last year, with a cash conversion of 93.7% [4][26] Business Line Data and Key Metrics Changes - The undergraduate segment reported revenue of BRL 2,789 million, up 13% year-over-year, driven by higher ticket prices and the maturation of medical school seats [19][20] - Continuing education revenue reached BRL 284 million, reflecting an 11% growth year-over-year, with B2B revenue growing by 48% [6][22] - Medical practice solutions revenue increased by 6% year-over-year, reaching BRL 171 million [6][24] Market Data and Key Metrics Changes - The ecosystem reached 301,000 active users, indicating strong engagement among physicians and medical students across Brazil [6][9] - The number of medical students grew by 5% year-over-year, exceeding 25,000 students [5][19] Company Strategy and Development Direction - The company aims to strengthen its position across the entire physician lifecycle, expanding its audience and deepening engagement [11][12] - Investments will focus on integrating products and services for physicians, enhancing the user experience, and improving technology and data capabilities [12][37] - The strategy includes scaling B2P healthcare offerings and maintaining a low customer acquisition cost for undergraduate students [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver solid results with high predictability, expecting revenue for 2026 to range between BRL 3.95 billion and BRL 4.1 billion [16][17] - The company does not anticipate any material impact from Enamed on its 2026 guidance, with preparations in place for upcoming evaluations [17][46] Other Important Information - A cash dividend of BRL 307.4 million was announced, equivalent to BRL 3.45 per share, representing 40% of the 2025 net income [10][11] - The company maintains a conservative leverage profile with a net debt of BRL 1,369 million, a reduction of BRL 445 million from the end of 2024 [29][30] Q&A Session Summary Question: Transformation in Continuing Education and Medical Practice Solutions - Management discussed integrating products and services for physicians under a unified platform to enhance user experience and audience engagement [36][37] Question: Progress on Enamed and M&A Strategy - Management indicated no expected impact from Enamed on 2026 guidance and outlined plans for M&A to add 200 seats capacity per year targeting educational institutions with significant revenue from medicine programs [46][50] Question: Operational Expenses and CapEx - Management explained that the increase in intangible assets in CapEx was due to new investment programs initiated in Q4 2025, and operational expenses were managed effectively [55][56] Question: Capital Allocation Priorities - Management emphasized the flexibility in capital allocation due to strong free cash flow, balancing investments in M&A, dividends, and share buybacks [61][64] Question: Revenue Growth Breakdown - Management provided insights that undergraduate growth would be in single digits, while medical practice solutions and continuing education would see double-digit growth [71][72]