加载中...
共找到 8,150 条相关资讯
'Mad Money' host Jim Cramer talks where to find winners and places to put your money in this market.
The Dow Jones Industrial Average led a mixed performance in the stock market Wednesday as health care, financial, and steel stocks outperformed.
Equities have rebounded from a tech related sell-off last week as the long running federal government shutdown is on its way to being resolved. Warren Buffett has been growing increasingly cautious on the overall market for years.
Investors drove the Dow to back-to-back record gains, shrugging off concerns about an AI bubble and the lack of economic data tied to the government shutdown.
I recommend buying assets tracking main American indices, supported by robust earnings growth and favorable November seasonality. S&P 500 earnings are up 19% year-over-year, with strong margin gains and positive reactions to earnings beats and raised guidance.
Ryan Detrick, Carson Group Chief Market Strategist and Ayako Yoshioka, Wealth Enhancement Portfolio Consulting Director, joins 'Closing Bell Overtime' to talk the day's record market action.
Comprehensive cross-platform coverage of the U.S. market close on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Katie Greifeld, Carol Massar and Tim Stenovec.
After years of trailing their hard-charging rivals in the information-technology sector, stocks from the so-called old economy are enjoying a moment of bliss.
Nikkei closes at 51,063, extending gains for a second session. Manufacturing confidence hits a four-year high as exports strengthen.
Goldman and UnitedHealth help push the Dow industrials to a record.
CNBC's Steve Liesman joins 'Closing Bell Overtime' to talk recent comments from members of the FOMC on rate changes.
Boston Fed President Susan Collins has voted in line with the central bank's majority decisions so far this year.
Nicolas Janvier, head of North American equities for Columbia Threadneedle, says tech earnings have shown AI investments are paying off. He joins Caroline Hyde and Ed Ludlow on “Bloomberg Tech.
Capital is already rotating from speculative, high-momentum AI and tech stocks toward value and defensive plays as market froth shows signs of unwinding. Berkshire Hathaway (BRK.A, BRK.B) is positioned for relative outperformance, with disciplined capital allocation and renewed investor attention amid market rotation.
Boston Fed President Susan Collins said she will be reluctant to support further rate cuts anytime soon with inflation still high and policymakers hampered by a lack of data. "I see several reasons to have a relatively high bar for additional easing in the near term," said Collins, a voter this year on the Federal Open Market Committee.
Operator: Ladies and gentlemen, greetings, and welcome to the Snail, Inc. Class A Common Stock Third Quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, as a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Steven Shinmachi, Investor Relations. Please go ahead. Thank you. Steven Shinmachi: Thank you, and good afternoon, everyone. Welcome to Snail, Inc. Class A Common Stock Third Quarter 2025 Earnings Conference Call and Webcast. Joining us for today's call are Snail, Inc. Class A Common Stock Chief Financial Officer, Heidy Kingwan Chow, and Senior Vice President, Director of Business Development and Operations, Peter Kang. The company's third quarter 2025 earnings press release was filed earlier today and is available on the Investor Relations section of Snail, Inc. Class A Common Stock's website at www.snail.com or the SEC website at www.sec.gov/ekker. During this call, management may make forward-looking statements regarding future events and the future financial performance of the company. Actual events or results may differ materially from our expectations, and forward-looking statements are subject to certain risks and uncertainties. Please refer to the company's Form 10-Q that has been filed with the SEC, the most recent Form 10-Ks that was filed with the SEC on 03/26/2025, and other SEC filings. The company makes these forward-looking statements as of today and disclaims any duty or obligation to update them or to release publicly any updates or revisions to any forward-looking statements to reflect changes in its expectations or any change in events, conditions, or circumstances on which any such statement is based. Additionally, on today's call, we refer to bookings and EBITDA, which are non-GAAP financial measures, and provide useful information for the company's investors. You will find a historical reconciliation of bookings and EBITDA to the corresponding GAAP measures in the earnings press release and the company's SEC filings. And now I will turn the call over to Heidy Kingwan Chow, Chief Financial Officer of Snail, Inc. Class A Common Stock. Ma'am, please proceed. Heidy Kingwan Chow: Good afternoon, everyone. Thank you for joining us today to review our financial and operational results for the third quarter ended 09/30/2025. The third quarter was a combination of growth, development, engagement, and heightened awareness across our portfolio, highlighted by participation in industry events, the launch of a new indie title, awards won by our upcoming indie title, ongoing progress across key projects and initiatives, and sneak peeks into upcoming titles and content. Peter will dive into the detail around the gaming business later in the call, but I would first like to provide an update on our stablecoin project. We continue to make meaningful progress towards our goal of becoming one of the first gaming companies to issue its own proprietary stablecoin. Currently, we are developing the underlying infrastructure that will support the coin and advancing through the multistate regulatory application process. The team we have put together has been instrumental in making such progress since we publicly announced this new project a few months back. While much of the work is happening behind the scenes, we are in a strong position to share more tangible updates with stakeholders in the next couple of months. To reiterate our rationale for pursuing the coin project, by pursuing this initiative, we are positioning Snail, Inc. Class A Common Stock as one of the pioneers in a space with significant untapped potential. We believe that the investments we are making today in technology and infrastructure will yield long-term benefits and create a foundation for innovation across the industry. We view stablecoins as the future of payments, and as a gaming company, we see endless opportunities. While widespread adoption will require an industry shift, the passage of the Genius app a few months ago was a pivotal moment that created a framework to accelerate this transformation. For a sector that relies heavily on online transactions, a digital currency pegged to the US dollar offers immense utility, efficiency, and reliability. Of course, achieving this vision will require many other stakeholders within the industry to embrace such an initiative, which in reality will take time. That said, we believe that the investments we are making now position us ahead of the curve as a bellwether and unlock a wealth of potential opportunities in the future. The progress made so far has been truly exciting, and we look forward to sharing more substantive updates with our shareholders and stakeholders in the near future. Before I turn the call over to Peter to discuss our gaming business, I would like to address our third quarter performance and provide some context behind our reported decline in net revenue for the third quarter. While top-line results for the quarter decreased year-over-year, this was primarily driven by the timing of revenue recognition rather than fundamental changes in our business or a reduction in the sales and demand for our products. Under our revenue recognition model, certain sales are deferred and recognized over time as performance obligations are met. We record deferred revenue when payments are received in advance of the fulfillment of our associated performance obligation, such as when we presale certain games and content. During this quarter, FIFA revenues increased approximately $10.9 million compared to the same period last year, primarily driven by ARC Survival Ascended Lost Colony Expansion Path DLC bundle. As of the quarter ended, the deferred revenue balance was $36.4 million, of which $35.3 million is due to nonrefundable payments. More importantly, we do expect to recognize approximately $26.5 million in nonrefundable deferred revenue payments within the next twelve months. We also are targeting the launch of ARC Lost Colony in December 2025, which we expect $5.8 million of the deferred revenue balance to be recognized and positively impact our fourth quarter top-line results. Despite our deferred revenues affecting this quarter's result, our core gaming business is still generating cash, with our operating cash flow for the nine-month period remaining solid at approximately $4.2 million. Our bookings for the third quarter also grew 9.3% to $17.6 million compared to the year-ago period, further demonstrating the strong demand and engagement we experienced in the third quarter. Snail, Inc. Class A Common Stock also typically experiences sales spikes during quarters where we launch a new ARC DLC. In addition to the deferred revenues, we expect incremental sales driven by the launch of Lost Colony from players who did not participate in the presale event. With this new content on the horizon, we also anticipate a corresponding increase in engagement in the assay. Together, these catalysts position us for a significantly stronger fourth quarter compared to Q3 and set us up to finish the year on a high note. Demand and engagement across our gaming portfolio remain robust, and with Lost Colony slated for Q4, we are confident in finishing the year on solid footing. Before I dive deeper into our quarterly results, I will hand the call over to Peter to discuss some recent developments in our gaming business and operations. Peter? Peter Kang: Thanks, Heidy, and good afternoon, everyone. As Heidy mentioned, the fundamentals across our gaming business remain unchanged. Our units sold for the quarter increased by 7.8% year-over-year, primarily related to ARC Ascended and its related DLCs. For the nine-month period, total units sold increased 38.7% to 4.8 million. ARC engagement also continued to remain stable. Average DAU for ARC Survival and ARC Survival Ascended used approximately 122,658 and 92,876, respectively. As of quarter-end, ARC has been played for 4.2 billion cumulative hours, with the average screen time for users reaching 161 hours. Our ARC mobile title also surpassed 9 million downloads across iOS and Android, and average DAU was approximately 144,750 during the third quarter. Engagement across ARC continues to remain strong and stable and has no material impact on our results for the quarter. Over the last several months, many of our titles were featured at leading industry events, including Gamescom, BridgeCon, and several niche conferences, all focused on driving awareness of current releases, as well as new and upcoming indie titles. We recently launched Rebel Engine just last week and officially announced the December 4 release date for our highly anticipated title Echoes of Elysium. The most impactful event we participated in during the quarter was the 2025 Steam Autumn Sale, which featured our flagship titles, early access projects, and indie portfolio. Notably, ARC Survival Ascended was discounted 50% during the week-long event, where we saw encouraging upticks in sales. The event generated 8.5x ARC Survival Ascended units per day and 3.5x ARC Survival Ascended revenue per day compared to the preceding nonsale period. This was encouraging to see as the uptick in sales and engagement positions the game well with the upcoming launch of Lost Colony DLC on ARC Survival Ascended next month. These sale events are strategically designed not only to reinvigorate engagement across our titles but also present an opportunity to showcase the depths of our portfolio, elevate the visibility of our indie games, and broaden each game's player base. A quick review on interactive films: As of September 30, 2025, we released 67 short film dramas through our short-form mobile application, Salty TV. While we remain in the early stages, the growth across Salty TV's portfolio has been encouraging to see. We remain optimistic and look forward to continuing to scale the total number of films available within the app. We also expanded the scope of interactive films during the quarter as we developed and released a narrative-driven simulation title, The Fame Game: Welcome to Hollywood. Looking ahead, our primary growth drivers for the fourth quarter will be the upcoming ARC Survival Ascended DLC Lost Colony. As we previously mentioned, presales for Lost Colony began in June and have delivered strong results as evidenced by strong bookings in Q2 and Q3. As of September 30, we have sold approximately 306,000 units of Lost Colony Expansion Pass, exceeding our expectations. A material portion of our deferred revenue balance is comprised of revenue from the Lost Colony presales, and once the DLC is released next month, we expect to recognize this deferred revenue in our Q4 top-line results. To further stimulate demand, we recently enhanced the value of the Lost Colony DLC bundle by adding a completely new and exclusive Fantastic Tames Elder Claw to the bundle. As mentioned previously, we are targeting Echoes of Elysium to be released on December 4, which we anticipate will be more impactful than our typical smaller-scale indie titles. Peeking into 2026, we have a handful of new games and content being developed across both the established and indie titles. Across ARC, we have Genesis One and Two coming to ARC Survival Ascended, along with several new projects currently underway. We are also continuing to develop Nanyan Sutra Vuzhou, Nanyin Sutra Immortal, and For the Stars. These three titles are larger in scope compared to our typical indie releases, and we also expect them to have more material impact compared to our smaller-scale niche games. As mentioned, we have a healthy backlog of games and content coming in the fourth quarter and throughout 2026, with a handful of unannounced projects at this point also poised to make a strong impact next year. Our team continues to focus on delivering to our core ARC fan base through the launch of Lost Colony next month, and we look forward to delivering innovative content to drive sustainable long-term returns and engagement for our shareholders and player base. With that, I will now turn the call back over to Heidy to discuss our financial results for the third quarter ended September 30, 2025. Heidy? Heidy Kingwan Chow: Thank you, Peter. Net revenue for the third quarter was $13.8 million compared to $22.5 million in the same period last year. As mentioned earlier, the decrease was not due to fundamental changes in the business but rather due to an increase in deferred revenue of $10.9 million, primarily from ARC Survival Ascended. In addition to a decrease in revenues related to BellRite of $500,000, we continue to see strong demand and engagement across our gaming portfolio, with total ARC sales increasing by $2.2 million compared to the same period last year, in addition to an increase in Salty TV sales of $300,000. Net revenues for the nine months ended 09/30/2025 were $56.1 million compared to $58.3 million in the same period last year. During the nine-month period, total ARC sales increased $13.7 million, and Salty TV increased $600,000 compared to the same period last year. This increase was offset by the increase in deferred revenue of $11.9 million, primarily from ARC Ascended, decreased revenue related to BellRite of $2.6 million, a decrease in Angela Games revenue of $1.2 million, and a nonrecurring games settlement of $600,000 occurring in 2024. To reiterate, as of 09/30/2025, the balance of deferred revenue was $36.4 million, of which $35.3 million is due to nonrefundable payments. We are expecting $26.5 million of the balance to be recognized within the next twelve months. $5.8 million of this balance, which consists of the ARC Lost Colony presale revenue, will be recognized during the fourth quarter. Net loss for the three months ended 09/30/2025 was $7.9 million compared to net income of $233,000 in the same period last year, primarily due to the decrease in net revenue and the increase in general administrative, advertising and marketing, and impairment of film assets expenses. Net loss for the nine months ended September 30, 2025, was $26.4 million compared to a net income of $700,000 in the same period last year, primarily due to an increase in provision for income taxes of $10.5 million, general and administrative expenses of $4.4 million, research and development of $3.1 million, advertising and marketing of $2.4 million, impairment of film assets of $800,000, an increase in cost of revenue of $3.9 million, a decrease in revenue of $2.1 million, partially offset by an increase in total other income of $100,000. Bookings for the third quarter increased 9.3% to $17.6 million compared to $16.1 million from the same period last year. The increase was primarily driven by various sales promotions in 2025 that did not occur in 2024, specifically around ARC Survival Evolved and the release of ARC Lost Colony and ARC Aquatica in 2025. Bookings for the nine months ended 09/30/2025 increased 14.3% to $67 million compared to $58.6 million in the same period last year. The increase was primarily driven by the releases of ARC Survival Ascended DLC Exteros in 2025, sales promotions that were the first of their kind on ARC Survival Evolved in 2025, the release of ARC Lost Colony to presale in 2025, and the release of ARC Aquatica. EBITDA for the third quarter was a $9.7 million loss compared to $500,000 in the same period last year. The decrease was primarily due to an increase in net loss of $8.1 million and a decrease in the provision of income taxes of $1.8 million, partially offset by an increase in interest income and interest income related parties of $400,000. EBITDA for the nine months ended 09/30/2025 was a loss of $15.6 million compared to $1.6 million in the same period last year. The decrease was primarily due to an increase in net loss of $27.1 million, a decrease in interest expenses of $200,000, partially offset by an increase in provision for income taxes of $10.5 million and a decrease in interest income and interest income related party of $400,000. As of 09/30/2025, unrestricted cash and cash equivalents were $12.3 million. To review our detailed financial statements, please refer to the earnings press release and the Form 10-Q filed with the SEC. To conclude, we remain excited about the progress made on both our stablecoin project and gaming portfolio and pipeline. ARC Lost Colony continues to remain a growth driver for the fourth quarter, and we look forward to a stronger finish to the year. Thank you all for joining us today. We will now open the line for Q&A. Operator? Operator: Thank you. Ladies and gentlemen, we will now be conducting a question and answer session. You may press star and 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, we will wait for a moment while we poll for questions. Our first question comes from the line of Michael Kupinski with NOBLE Capital Markets. Please go ahead. Michael Kupinski: Hi. It's Jacob Metzler on for Michael Kupinski. I was just curious, could you talk a little bit about the gross margins in the quarter? We noticed that a gross margin was around 30% for Q1 and Q2. So just curious if you could talk a little bit about what led to that contraction. Heidy Kingwan Chow: This is Heidy, CFO of the company. That was a good question. This was really a combination of multiple factors. On our cost of the revenue side, while we pay royalties as a percentage to our net revenue, we do have a fixed license fee to our related party of approximately $6 million per quarter. This license fee is actually fixed and is paid on a monthly basis, regardless of our recognized revenue, which is also the main reason why the gross profit margin actually decreased this quarter. On our revenue side, we had an increase in our booking, but we deferred $5.9 million. As mentioned earlier, we deferred $5.9 million in our sales of Lost Colony. Additionally, we held a significant sale in 2025 that we do believe pulled demand forward for the quarter for the base game of ASE. Michael Kupinski: Gotcha. And then if I could just turn to deferred revenue, you know, I know you mentioned the increase in deferred revenue. But could you just talk a little bit about the timing of when some of that revenue is going to be re-recognized over the next twelve months? Heidy Kingwan Chow: Sounds good. Thank you, Jacob. As mentioned earlier in our earnings call, we do believe that all our deferred revenue is recognized as of 09/30/2025. In fact, the majority of it will be recognized within the next twelve months or so, assuming there are no delays in the delivery of our obligation to our customers and our players. We do expect to recognize $5.9 million of our short-term deferred revenue in 2025 related to Lost Colony. Once the game is released, we will recognize that as a top-line revenue. And $10.3 million were related to Genesis One and Two. Once Genesis One and Two are released, we will be able to recognize those as revenue in the upcoming year. Michael Kupinski: Gotcha. And outside of the Lost Colony deferred revenue and then Genesis One and Two, what is the... Operator: I'll hop back in queue. Thank you. Ladies and gentlemen, at this time, there are no further questions. The conference of Snail, Inc. Class A Common Stock has now concluded. Thank you for your participation. You may now disconnect your lines. Thank you.
Operator: Afternoon, and welcome to Lulu's Fashion Lounge Holdings, Inc. Third Quarter 2025 Earnings Conference Call. Today's call is being recorded. And we have allocated one hour for the prepared remarks and Q&A. At this time, I'd like to turn the conference over to Lulu's Fashion Lounge Holdings, Inc. General Counsel and Corporate Secretary, Naomi Beckman-Straus. Thank you. You may begin. Naomi Beckman-Straus: Good afternoon, everyone, and thank you for joining us to discuss Lulu's Fashion Lounge Holdings, Inc. Fiscal Third Quarter 2025 Results. Before we begin, we would like to remind you that this conference call will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements made on this call that do not relate to matters of fact should be considered forward-looking statements, including but not limited to statements regarding management's expectations, plans, strategies, goals, and objectives, their implementation, opportunities for growth in the coming quarter, the long-term growth trajectory of our business, our expectations around the continued impact of the macroeconomic environment including as a result of the imposition of tariffs, consumer demand and return rates on our business, our future expectations regarding financial results, our ability to realize the intended impact of cost reduction measures, reference to the fiscal year ending 12/28/2025, including our financial outlook for the fourth quarter and fiscal year 2025. Market opportunities, buying strategies, product launches, SKU management, our technology enablement initiative, and personalized shopping and other initiatives. These forward-looking statements are subject to various risks, uncertainties, assumptions, and other important factors, which could cause our actual results, performance, or achievements to differ materially from results, performance, or achievements, expressed or implied by these forward-looking statements. These risks, uncertainties, and assumptions are detailed in this afternoon's press release, as well as our filings with the SEC, including our annual report on Form 10-Ks for the fiscal year ended 12/29/2024, and our quarterly reports on Form 10-Q for the fiscal quarters ended 03/30/2025, and 06/29/2025. All of which can be found on our website at investors.lulu.com. Any such forward-looking statements represent management's estimates as of the date of this call. While we may elect to update such forward-looking statements at some point in the future, we undertake no obligation to revise or update any forward-looking statements or information except as required by law. During our call today, we will also reference certain non-GAAP financial information, including adjusted EBITDA, adjusted EBITDA margin, net debt, and free cash flow. We use non-GAAP measures in some of our financial discussions as we believe they more accurately represent the true operational performance and underlying results of our business. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for or superior to the financial information prepared and presented in accordance with GAAP. Our non-GAAP measures may be different from non-GAAP measures used by other companies. Reconciliation of GAAP to non-GAAP measures as well as the description, limitations, and rationale for using each measure can be found in this afternoon's press release and in our SEC filings. We also use certain key operating metrics, including gross average order value, and total orders placed. The description of these metrics can also be found in this afternoon's press release and in our SEC filings. Joining me on the call today are our CEO, Crystal Landsem, our CFO, Heidi Crane, and our President and CIO, Mark Vos. Following our prepared remarks, we'll open the call for your questions. With that, I'll turn the call over to Crystal. Crystal Landsem: Thank you, Naomi, and good afternoon, everyone. Appreciate you joining us today. Our third quarter results reflect the meaningful progress we are making in strengthening and optimizing key areas of the business through consistent execution of our strategic priorities and an eye towards a more occasion-wear-focused assortment. We believe we are on a solid path with another quarter of material sequential improvement in our quarterly year-over-year net revenue comparisons and another consecutive quarter of positive adjusted EBITDA in line with our expectations. Special occasion and bridesmaids categories continue to outperform, giving us confidence in our event attire strategy, reinforcing the strength of our attainable luxury value proposition. The outperformance in special occasion was offset by continued weaker performance in casual wear and footwear assortments, which we are actively realigning towards a more curated event-focused assortment. Importantly, we entered into a credit agreement with White Oak Commercial Finance in the third quarter, which strengthens our liquidity position and significantly improves our financial flexibility. Combined with another quarter of positive adjusted EBITDA performance, a more efficient cost structure, and a healthier balance sheet with the closing of our new ABL facility, we believe we are well-positioned to continue executing against our strategic priorities which are geared towards strengthening our foundation, driving customer engagement, and setting us up for sustainable long-term growth. I'd like to highlight a number of key positive developments from the quarter which showcase the continued momentum we're seeing across the business as a result of our strong execution against our strategic initiatives. Special occasion continues to lead outperformance, with formal and bridesmaids categories driving ongoing year-over-year net sales growth on top of a double-digit comparison in the prior year period. Our continued strong performance in event dressing gives us increased confidence in our assortment strategy and value proposition and further supports our belief that we are a leading destination for getting dressed up for under $200. Worth noting, these product classes year to date had a three-year CAGR of 6.7% in Q3 2025 had a three-year CAGR of 9.5% showing the growth acceleration throughout 2025. First-time reorders of new products once again saw sequential and year-over-year growth. Our refined reorder and merchandising strategies are working, and we are investing in areas of our new product assortment where there is demand to build upon our successes in these areas. Total reorder business and selected deposit in the back half of the quarter led by success across our reorder and debut reorder event dress businesses. This validates our strategy to lean into optimizing fewer SKUs with color additions and fabrication ads to build out our winning programs that customers tell us they love. Product margins improved for the fourth consecutive quarter. This is reflected in approximately a 500 basis point increase compared to the prior year period and 25 basis points higher than our pre-pandemic third-quarter merchandise margin high point illustrating the gap we've closed from a margin recovery perspective. The improvement highlights the continued consumer demand for our higher margin product categories, further supported by our pricing and margin enhancement initiatives and fewer markdown sales, which we remain focused on to drive steady margin improvement going forward. Gross margins expanded 450 basis points to 42.6% over the prior year period with monthly sequential improvement through the quarter. Our focus on selling profitably and at higher margins is yielding results. And we remain focused on continuing to optimize gross margins through a mix of SKU optimization, sourcing, price, and cost efficiencies. Return rates improved 110 basis points from 2Q underscoring the ongoing impact of our improved fit and quality efforts and measured return policy adjustments. Brand momentum continues to build as we lean further into visibility initiatives to drive discovery and relevance. During the third quarter, we launched our first fall brand campaign and leveraged editorial and influencer engagement around cultural moments and through talent partnerships. Our brand equity score has remained strong throughout the year, reflecting growing brand recognition and connection despite a more competitive market. Our wholesale business is ramping up with an exciting pipeline of interest and several new major partners and boutiques added during the third quarter. Resulting in our in-store and online wholesale presence expanding to six major retailers in Q3. As a result, we have achieved triple-digit 7-figure year-over-year growth in wholesale revenue year to date. The strong engagement we're seeing in this channel reaffirms the meaningful opportunity we see in the near and long term as we expand our footprint with existing partners and add brand accretive majors and boutiques to drive profitable wholesale volume and put Lulu's Fashion Lounge Holdings, Inc. products in the hands of more consumers nationwide. And last, we sustained positive adjusted EBITDA in the third quarter, consistent with our expectations. Our leaner cost structure and improved product margin supported our performance, resulting from our team's discipline and focus around streamlining operations and strengthening our bottom line. I'm incredibly proud of our consistent improvements in business performance over the last several quarters as we optimize our core business while also navigating a dynamic macro environment. We are keenly focused on addressing areas of our business that remain under pressure namely our shoes and casual apparel businesses, which have continued to weigh on top-line performance. As we have discussed on prior calls, we are actively resetting our merchandising strategy in casual apparel and shoes to stabilize these categories and reposition them for growth. By reducing SKU count and pulling back on inventory near term to improve turns, while also leaning into more elevated dressier styles, we believe we are able to rebuild with a more focused and productive assortment that better aligns consumer demand and margin goals. As we work through inventory, we expect top-line pressure from these categories to moderate towards 2026 allowing us to see more meaningful improvements in our revenue performance. To further support our realignment efforts, we made the strategic decision to optimize our team structure including narrowing our team, eliminating the chief merchandising officer role, and streamlining our operations to leverage the success we have seen with our occasion wear buying. As we look ahead, we remain committed to evaluating all options to enhance performance and drive sustained profitable, long-term growth focusing on process optimization and operational efficiency and positioning the brand as a key destination for special occasions and dressing up. Shifting to our cost reduction initiatives, we continue to reap the benefits of our cost-saving actions initiated last year. In the third quarter, OpEx declined 11% year over year and within that, fixed costs were down 18%. Enabling another quarter of positive adjusted EBITDA performance. We expect to continue to benefit from our leaner cost structure and the additional actions we're taking to drive operational efficiency, optimize performance, and sustain profitability. More recently, in response to heightened macro uncertainty, related to trade policy actions in the first half of the year, we took action to further promote cash generation and fortify our balance sheet through SKU rationalization. Our SKU rationalization initiative is bearing fruit with improved efficiencies and margins, reduced excess inventory, and incremental cost savings through a more curated assortment. As it relates to direct sourcing, we are on track with our direct-from-factory approach for select, mostly entry price point product category segments. In parallel, we are optimizing and diversifying our supply chain through reducing supply chain costs in close collaboration with our long-standing vendor partnerships. Furthermore, we are leveraging price strategy and assortment optimizations as incremental mitigation. On the home office front, I'm very excited to formally welcome Heidi Crane to our team as our fractional CFO. Heidi brings a wealth of experience leading financial strategies, for high-growth consumer companies which will be tremendously valuable to our team as we position for sustainable, long-term profitable growth. With that, I'd like to turn the call over to Mark Vos, our President and Chief Information Officer. Mark will provide updates around the progress we are seeing against our strategic priorities. Mark Vos: Thank you, Crystal. Our brand engagement initiatives continued to resonate. Strengthening visibility and deepening awareness across key markets. Despite a decline in our active customer counts year over year. Our Love Rewards loyalty program membership continues to grow steadily. Contributing to higher reactivation rates amongst lapsed customers. We also saw a meaningful uplift in average order value. During the third quarter, which supported our strong comp performance for the period. With continuous progress across key engagement metrics, we're optimistic about the impact of our strategic initiatives are having an accelerated brand momentum for Lulu's Fashion Lounge Holdings, Inc. To that end, let me share more specifics around the progress we're seeing against our three strategic initiatives. Starting with our product assortment optimization, and related margin expansion efforts. We delivered another quarter of sequential improvement in return rates, and damages related to customer returns. The shift to a flat fee return policy in Q1 introduced to better align with industry standards has proven effective in enhancing the customer experience and preserving margins. We continue to monitor customer behavior and will adapt our policy, to support the customer experience and the financial impact of returns. Across event categories, we observed several positive trends that reinforce our confidence in our refined merchandising and product assortment strategy. In first-time reorder, our positive performance led by event gowns our ongoing reorder strategy of investing more into recently tested new products and retiring older reorder products. In cocktail dresses, we saw progressive sales comp improvements throughout the quarter, supported by very strong top performers in both our new product and reorder product assortments. Demonstrating the impact of our new merchandising strategy and assortment optimization initiatives. While our best-selling new assortments saw early sell-through, we are taking advantage of opportunities to increase depth in styles that are working. Telling us that well for the year ahead. In our reorder programs, our disciplined and data-driven buying decisions allowed us to maintain stock levels throughout the homecoming season. Minimizing lost sales and allowing us to more effectively meet elevated demand. Turning to our investments in strengthening brand awareness and customer engagement. In Q3, we launched our first fall brand campaign. The Itlist, supported by out-of-home placements, influencer activations, and paid partnerships. Maintaining our cultural relevance and organic reach. We continued to show up in culture through high-impact moments such as our New York Fashion Week showroom, girls night out events, and ambassador-led initiatives. Including ladies of the table and dime. These activations expanded our audience and strengthened earned media value. On social media and content performance, TikTok views increased 46% quarter over quarter. With top-performing content, such as try-ons and wedding guest halls. Reaching millions YouTube Shorts also saw a significant spike driven by paid amplification and a refined content strategy. Our ambassador program scaled meaningfully with year-over-year growth in creator count, reach, and engagement. These programs continue to be a key driver of community expansion and brand resonance. Marketing and promotional efficiency also improved. Supported by a refined spend allocation and smarter execution across channels. Additionally, enhanced automation and more precise audience targeting contributed to positive engagement outcomes during the quarter. Looking ahead, we remain highly encouraged by the sustained strength of our brand and the effectiveness of our engagement strategies. The sequential gains in brand equity, coupled with strong performance across social and creative channels, reinforce our confidence in the scalability of our approach. Our third initiative on driving technology enablement to improve decisioning. Efficiencies, and create a seamless customer experience across channels. During the quarter, we revamped customer feedback collection via exit surveys, enabling us to capture more actionable quality signals and experience feedback from customers. Additionally, we made several user interface enhancements around returns and store credit options in the quarter. To reduce friction, and improve conversion rates. While also improving Lulu's Fashion Lounge Holdings, Inc. data insights for various purchase journey decisions. In summary, we remain very focused on progress against our key strategic priorities, which we believe positions the business for a return to profitable, sustainable, growth. And with that, I'll turn it over to Heidi Crane, our fractional CFO, to provide more color on our financial performance. Heidi Crane: Thank you, Mark. I'm excited to join during this transformational time in Lulu's Fashion Lounge Holdings, Inc. journey and contribute to its path to profitable growth. I've been incredibly impressed by the talent, engagement, and hands-on culture here. The team's deep passion for the Lulu's Fashion Lounge Holdings, Inc. brand was palpable from day one. Over the next few months, I'll be focused on getting up to speed, deepening my knowledge of our operations strategy, and culture. I'm looking forward to collaborating across the organization and engaging with the investment community as we continue driving Lulu's Fashion Lounge Holdings, Inc. growth and value over the long term. Now to our results. In the third quarter, net revenue was approximately $73.6 million, a decrease of 9% year over year, driven by a 14% decrease in total orders placed partially offset by an 8% increase in average order value. Gross margin for the quarter was 42.6%, up 450 basis points year over year due to notable improvement in product-related margins driven from a higher mix of full-price sales and higher margin product categories in addition to further progress on direct sourcing initiatives, driving improved margins, specifically in our entry price point product assortment. On the expense side, Q3 selling and marketing expenses totaled $16.9 million, down about $0.7 million year over year, primarily due to lower marketing and merchant processing fees and lower revenues. General and administrative expenses decreased $3.5 million to $16.4 million in Q3 an 18% decline year over year primarily due to a decrease in fixed labor costs driven by reduced headcount lower variable labor costs, and lower sales volume, as well as lower equity-based compensation expense reduced insurance costs, and lower travel, supplies, other discretionary expenses, all the result of our ongoing cost control initiatives. Our net loss for Q3 improved to $2.3 million from a $6.9 million loss in the same period last year driven primarily by a $0.7 million improvement in gross profit and a $4.2 million reduction in our operating expenses. Slightly offset by a $0.3 million increase in net interest expense. Q3's adjusted EBITDA was approximately $0.4 million positive compared to a $3.6 million loss in Q3 2024 a $3.9 million improvement year over year for the third quarter. Adjusted EBITDA margin was positive 0.5% versus negative 4.4% in the prior year period. Interest expense in Q3 totaled $0.544 million versus $0.305 million in Q3 2024. Diluted loss per share for the quarter was $0.84 compared to a diluted loss per share of $2.47 in Q3 2024. In the third quarter, net cash used in operating activities was $1.8 million a $3.7 million improvement from $5.5 million cash used in the same period last year primarily reflecting the improvement in our P&L. Turning to the balance sheet and liquidity. In August, we announced a new credit agreement with White Oak Commercial Finance comprised of an asset-based revolving credit facility with a $20 million commitment a $5 million uncommitted accordion, a $1 million sub-limit for letters of credit, the facility maturing on 08/14/2028. The proceeds from the initial funding of the agreement were used to repay approximately $6 million outstanding under a prior credit agreement with Bank of America. At the end of the quarter, we had $9.2 million in outstanding borrowings, under the new facility with the facility's higher credit limit providing us with enhanced financial flexibility a stronger liquidity position. Free cash flow during Q3 was negative $2.4 million reflecting a $3.9 million improvement year over year. Year to date, Q3 free cash flow was $3.5 million compared to prior year Q3 year to date free cash flow of $2.7 million. Net debt was $7.3 million at the end of Q3, a $1.4 million reduction from our net debt position of $8.6 million at the end of the fourth quarter 2024. Our inventory balance at the end of the quarter was $38.4 million or less than a 1% decrease year over year. Turning to our outlook, for the remainder of the year. Similar to the third quarter 2025, we expect significant year-over-year improvement in adjusted EBITDA in 2025. We also continue to expect full-year capital expenditures to be approximately $2.5 million. Additionally, we remain focused on driving strong operational execution, supporting our progress towards profitable growth. As it relates to tariffs and mitigation strategies, we are actively executing a multifaceted strategy that includes vendor collaboration, diversified sourcing, strategic pricing actions, and optimizing our product assortment. These initiatives are being carefully managed, and are already helping offset our tariff-related costs. And now I'll turn it back to Crystal for closing remarks. Crystal Landsem: All in all, I am proud of the clear progress we've made driving positive momentum across key areas of our business. We continue to demonstrate the impact of our strategic and cost-saving initiatives on optimizing our operations driving a return to profitability, and delivering a more aligned and curated occasion wear to our customers at an attractive price point. We remain firmly committed to maintaining positive year-to-date cash flow protecting brand integrity, and investing in our long-term objectives to support our return to growth. To our Lulu's Fashion Lounge Holdings, Inc. team and partners around the world, thank you for your tireless effort, trust, and passion for our brand. And thank you to our shareholders for your ongoing support. With that, I'll open it up for questions. Operator: Thank you. Ladies and gentlemen, we will now be conducting a question and answer session. If you'd like to ask a question, please key in star and then one. On your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may key in star and then two, to leave the question queue. Thank you. Ladies and gentlemen, with no questions in the question queue, it brings us to the end of this event. Thank you for attending. And you may now disconnect your lines.
Operator: Good afternoon, everyone, and welcome to Urgent.ly Inc. Common Stock's Third Quarter 2025 Conference Call. As a reminder, today's call is being recorded. Your participation implies consent to such recording. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press. With that, I would like to turn the floor over to Jenny Mitchell, Vice President of Finance Strategy and Investor Relations. You may begin. Jenny Mitchell: Thank you, Operator. Good afternoon, everyone, and thank you for joining us for Urgent.ly Inc. Common Stock's financial results conference call for the third quarter ended September 30, 2025. On the call today, we have Urgent.ly Inc. Common Stock CEO, Matthew Booth, and Urgent.ly Inc. Common Stock Controller and Principal Accounting Officer, Andrea Makkai. Following Matthew Booth and Andrea Makkai's prepared remarks, we will take your questions. Before we begin, I'd like to remind you that some of our comments today may contain forward-looking statements that are subject to risks, uncertainties, and assumptions, which could change. Should any of these risks materialize or should our assumptions prove to be incorrect, actual company results could differ materially from these forward-looking statements. A description of these risks, uncertainties, and assumptions and other factors that could affect our financial results is included in our SEC filings, including our most recent annual report on Form 10-K for the year ended December 31, 2024, our quarterly reports on Form 10-Q, and other filings and reports that we may file from time to time with the SEC. Except as required by law, we do not undertake any responsibility to update these forward-looking statements. During today's call, we will also discuss certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our earnings materials and press release, which are available on our website at investors.geturgently.com. A replay of today's call will also be posted on the website. As you learned from our 8-K and press release filed on September 22, 2025, NASDAQ formally notified Urgent.ly Inc. Common Stock that its net income from continuing operations had fallen below the minimum requirement and that it did not meet the alternative listing criteria for market value of listed securities or stockholders' equity for continued listing on the NASDAQ Capital Market under NASDAQ Listing Rule 5,150. In response, Urgent.ly Inc. Common Stock requested a hearing and presented before the NASDAQ panel on October 23, 2025. At the hearing, Urgent.ly Inc. Common Stock presented its plan to regain compliance with the NASDAQ listing rules and requested an extension through February 16, 2026, to achieve and demonstrate long-term compliance. Last week, on November 5, 2025, the NASDAQ panel granted Urgent.ly Inc. Common Stock the continued listing extension through the requested date. With that, I'll now turn the call over to Matthew Booth. Matthew Booth: Thanks, Jenny, and good afternoon, everyone, and thank you for joining us today. I'm very pleased with our performance during the third quarter. The momentum is building across the business, and I'm excited to provide an update on our recent progress. To begin, we're happy to announce that for Q3, we have achieved positive non-GAAP operating income. This is an important milestone. Let me begin with some other important highlights from our financial performance. We delivered $32.9 million in revenue for the third quarter, which was in line with our expectations. And notably, our eighth consecutive quarter where we delivered on our revenue guidance commitment. In addition, we delivered our second quarter of modest sequential quarterly revenue improvement, which demonstrates early signs of our return to growth. For the third quarter, we achieved a gross margin of 25%, which is again within our midterm outlook of the 25% to 30% range that we continue to reference as our longer-term target. This is a four-point improvement over the third quarter last year. Over the last three years, we've improved Q3 gross margin by 13 points, from 12% in Q3 2022 to 25% in Q3 2025. In all, we reduced the non-GAAP operating expenses by $2.7 million or 25% when compared to the same period last year. And most notably, as I mentioned at the top of the call, we achieved non-GAAP operating income for Q3 2025. I am so proud of the team and their hard work for achieving this milestone. The results reinforce our commitment to disciplined execution and long-term value creation. This signals a profitability inflection point. As we have discussed previously, we are now focused on new account growth and expanding our market share. First, let me talk about revenue starting with renewals. As we've discussed on prior calls, a portion of our annual capacity is dedicated to securing revenue through renewals. This is a big year for us. We're on pace for a productive renewal cycle with a handful of our OEM and fleet customer partners up for renewal. The specifics vary, but generally, we are looking at contracts from two to five years in length. Next, we would like to provide an update on our progress in the insurance markets. Last quarter, we mentioned that we signed a new contract with a premium insurance provider. This contract is now scheduled to launch later this month. We are also currently in red lines with two additional insurance providers in the mid-tier space. We are looking forward to providing transparent, high-quality service to this previously underserved segment of the insurance market. We still believe that most of the single-source roadside contracts will have two providers in the future, and this champion-challenger model produces better results for partners. To this end, we have been awarded a pilot with a large-scale insurance provider, which provides us with an excellent opportunity to feature our technology and prove our value. We will provide more details on this in the coming months. We are also gaining momentum in securing revenue from new logos across the fleet, autonomous vehicle, and affinity brand verticals. We have signed two new contracts and are in red lines with two others. Last quarter, we discussed that we signed a contract with a new EV manufacturer. In our October 7 press release, we announced this partnership with Sony Honda Mobility of America to provide its Aphelio owners with reliable nationwide coverage across all 50 states and the District of Columbia. The vehicle and the Urgent.ly Inc. Common Stock logo were proudly displayed in Las Vegas at the InsurTech Conference held in September. Beginning with the US delivery of the Aphelio I in 2026, Sony Honda Mobility customers will have access to Urgent.ly Inc. Common Stock's extensive network of mobility assistance providers. Our partnership with Sony Honda Mobility and their Aphelio brand centers on delivering an exceptional customer assistance experience that matches their groundbreaking vehicle. We anticipate Aphelio customers to be digitally sophisticated, expecting seamless high-quality service when assistance is needed, which perfectly aligns with our technology-driven approach to roadside assistance. With this agreement, we are already preparing service integration to align with the Aphelio One delivery to ensure that roadside assistance will be ready from day one. Our digitally native platform leveraging AI and machine learning has given us substantial operating scale and credibility in the market by creating predictive models to enhance performance for partners using temporal, spatial, and network data. On that front, we look forward to sharing even more about our capabilities in these areas. Our company website is undergoing a much-needed refresh and update. We have transformed this experience to showcase our platform, product features, data analytics dashboards, products, including our full suite of AI machine learning capabilities, and our service and solutions offering. Our website relaunch will be in the next few weeks. As Jenny mentioned earlier, we are actively pursuing strategies to comply with our NASDAQ listing requirements. More specifically, these strategies are focused on recapitalizing our balance sheet. For those that have been following our journey and are familiar with our financials, the recapitalization of our balance sheet is expected. We do believe that this is a key and necessary step to unlocking incremental value for shareholders, especially as we are pivoting to profitability, gaining momentum in new account growth, and producing high customer satisfaction scores, which are currently at 4.6 out of 5 stars. We are looking forward to providing updates on all of these topics as we are able. As we look ahead to 2025, our growth priorities remain returning to growth by expanding our existing B2B incident business through securing renewals, expanding relationships with existing customer partners, and developing new customer partner opportunities. Continuing to maintain non-GAAP operating breakeven through our operational improvements, margin expansion, and managed growth, transforming the market for roadside solutions with product innovations that differentiate Urgent.ly Inc. Common Stock from our competitors, improve our margin, and provide exceptional experiences for our customer partners and drivers. We plan to enter new and adjacent markets in the future. It's been a fantastic quarter, and I am proud of all the progress we have made. The momentum is exciting, and I look forward to the remainder of the year ahead. Thank you again for your time and continued support. I'll now turn the call over to Andrea Makkai to discuss our financial results. Andrea Makkai: Thank you, Matthew, and good afternoon, everyone. Today, I will discuss our results for the third quarter ended September 30, 2025. For the third quarter, revenues were $32.9 million, which was ahead of the midpoint of our guidance range of $31 million to $34 million and a decline of 9% or $3.3 million from the same quarter last year. The year-over-year revenue decline was in line with our expectations and was primarily driven by the reduction in dispatch volume from the early termination of a top-five global original equipment manufacturer customer partner referenced in our Q1 2025 filings and the reduction of revenue due from the Autonomous business. This was partially offset by volume and rate increases from new and existing customer partners. Gross profit was $8.1 million, an increase of $346,000 compared to the same period last year, driven primarily by margin improvement initiatives. Gross margin was 25% compared to 21% for the same period last year. The increase in gross margin is primarily related to the mix of service dispatches and our continued technology optimizations allowing us to better manage our service provider costs. We remain focused on executing against our strategic initiatives to drive profitable growth and continue to make steady progress to maintain our long-term gross margin target of 25% to 30%. Now let's move on to operating expenses. Operating expenses were $9.9 million, a decrease of $3.8 million or an improvement of 28% from the same period last year. Research and development expenses were $1.8 million compared to $3.1 million during the same period last year, a decrease of $1.3 million or 42%. The decrease was mostly related to the reduction in the autonomous-related research and development expenses and the reduction in employee and employee-related expenses. Sales and marketing expenses were $700,000 compared to $1.5 million during the same period last year, a decrease of $800,000 or 53%. The decrease was mostly related to the reduction in the autonomous-related sales and marketing expenses. Operations and support costs were $2.5 million compared to $3 million during the same period last year, a decrease of $500,000 or 16%. This decrease was mostly related to the continued optimization of customer support representative resources and operational process improvements. General and administrative expenses were $3.7 million compared to $4.9 million during the same period last year, a decrease of $1.3 million or 26%. The decrease was mostly related to the reduction in the autonomous-related general and administrative expenses along with continued cost optimization. We remain focused on driving operational improvements, which include continued optimization of business processes to drive further operational efficiencies. We also review non-GAAP operating expenses, which is defined as GAAP operating expenses plus depreciation and amortization expense, stock-based compensation expense, and nonrecurring charges such as transaction costs and restructuring costs. Non-GAAP operating expenses for the third quarter were $8 million, an improvement of 25% from $10.7 million in the prior year period. This non-GAAP operating expense is in line with our expectations and demonstrates the significant operational efficiencies and leverage we have achieved. GAAP operating loss for the third quarter was $1.8 million, a decrease of $4.1 million or an improvement of 70% from the prior year period. Matthew Booth: We also review non-GAAP operating loss, which is defined Andrea Makkai: as GAAP operating loss plus depreciation and amortization expense, stock-based compensation expense, and nonrecurring charges such as transaction costs and restructuring costs. Non-GAAP operating income for the third quarter was $123,000, an improvement from a non-GAAP operating loss of $2.9 million in the prior year Matthew Booth: period. Andrea Makkai: This is a significant milestone for the company as we met our stated guidance to achieve breakeven on a non-GAAP operating basis during 2025. While this represents a meaningful accomplishment, we view it as one step in our ongoing journey and not the destination. We remain committed to optimizing our business and operating model to drive continued improvement in this metric going forward. Now a few comments on our balance sheet. As of September 30, 2025, Urgent.ly Inc. Common Stock had a cash and cash equivalents balance of $4 million and a principal debt balance of $61 million. During the third quarter, we capitalized approximately $1.5 million in software, mostly to make enhancements to our platform by adding features and functionality which benefit all our customer partners. We expect this practice to continue with approximately $1 million to $1.5 million to be capitalized in 2025. During the third quarter, we sold 181,000 shares of common stock under our ATM program to raise approximately $273,000 in net proceeds after fees and commissions at a weighted average price of $4.19 per share. As of September 30, 2025, we had 1.6 million shares of common stock outstanding. Turning now to our outlook. For 2025, we expect revenue to be between $30 million to $33 million and our non-GAAP operating loss to be again less than $500,000. Additionally, we continue to target maintaining non-GAAP operating breakeven in the fourth quarter. With that, we are now happy to open the call for questions. Operator, please open the line for Q&A. Operator: Ladies and gentlemen, at this time, we'll begin the question and answer session. If you are using a speakerphone, we do ask that you please pick up the handset prior to pressing the keys to ensure the best sound quality. Once again, that is star and then one to join the question queue. Our first question today comes from Christopher Alan Pierce from Needham. Please go ahead with your question. Christopher Alan Pierce: Hey, just one big picture question and then one kind of more smaller, like, near-term question. How should investors think about Urgent.ly Inc. Common Stock positioning if we do see a weakening economy, maybe less new car sales, but I know you guys are levered more towards premium OEMs, but then you have insurance customers sort of coming on. As you see older cars on the road perhaps, I guess I'd just love to kind of hear you kind of refine how to think about parts of the economy and parts of your business and how you have hedges and kind of where investors should think about that going forward? Matthew Booth: Yeah. Hey, Christopher. It's Matthew. Good to hear from you. Good question. We get this a lot. So I think in a lot of ways, Urgent.ly Inc. Common Stock is an anti-cyclical business. So the more that the economy starts to fall through or get worse or consumers start to put off repairs in their vehicles, what you'll start to see are an increased amount of incidents or breakdowns on our side. So we should look at our revenue actually improving as consumers put off needed repairs. And in terms of the OEM side, seeing that pretty good deliveries on the OEM side so far, so I don't think we've seen any tariff impacts as far as that goes. So I think, you know, as the economy gets worse or if it gets worse and cars break down more, Urgent.ly Inc. Common Stock will continue to do better. Christopher Alan Pierce: Okay, perfect. And then I know I heard the revenue guidance. I guess it's probably maybe too early to start thinking about '26, but the fourth quarter of 2025 is your first quote-unquote easier comp given toward the customer transact customer and forth that you had at the end of last year. How should we think about moving forward with the renewals you talked about and the new customer wins and the insurance customer trialing going forward? I know you still have a 25% to 30% revenue target over time. But I just kinda wanna think about or 20% to 30%. Sorry. Just think about, you know, the time frame around that. I want investors to get comfortable around. Matthew Booth: Yeah. I think we're, as we mentioned before, now that we've shed the Autonomous assets and removed the expenses from the Autonomous business, we have started to put the foot on the gas pedal, so to speak, and started to grow revenue. We have a lot of really good opportunities in the pipeline. Mentioned in the script that we have one with a top insurance company that we're starting that'll start at least the pilot will start this year, which we're very excited about because as we've mentioned previously, moving back into insurance is pretty important. Additionally, we also signed another insurance company. So a couple more fleet customers on top of it. So I think the revenue is definitely starting to tick up. Renewals look great. Customers are very happy with us so far. We don't have any issues with customers, and we expect to finish this year with an extremely strong renewal cycle. Christopher Alan Pierce: Okay. Trevor. Thanks. Good luck. Matthew Booth: Thanks, Russ. Operator: Once again, if you would like to withdraw your questions, you may press star and 2. Ladies and gentlemen, at this time, showing no additional questions, I'd like to turn the floor back over to Matthew Booth for any closing remarks. Matthew Booth: Great. Thanks, everybody. In closing, we're proud of the significant progress we've made to position the company for profitable growth. We look forward to providing you with future updates on our progress on future calls. If you'd like to meet with management, by all means, please reach out to us at InvestorRelations@geturgently.com, and we can schedule a call. Thanks again for your interest in Urgent.ly Inc. Common Stock and for joining our call today. Operator: And with that, ladies and gentlemen, we'll conclude today's conference call and presentation. We thank you for joining. You may now disconnect your lines.
Operator: Hello, and thank you for standing by. I would like to welcome everyone to the Serve Robotics Third Quarter 2025 Financial Results and Conference Call. Now I would like to turn the call over to Aduke Thelwell, Head of Communications and Investor Relations. Please go ahead. Aduke Thelwell: Thank you, operator, and good afternoon, everyone. Welcome to Serve Robotics' third quarter 2025 earnings call. With me today are Serve Robotics' Co-Founder and CEO, Ali Kashani, and our CFO, Brian Read. During today's call, we may present both GAAP and non-GAAP financial measures. If needed, a reconciliation of GAAP to non-GAAP measures can be found in our earnings release filed earlier today. Certain statements in this call are forward-looking statements. You should not place undue reliance on forward-looking statements. Actual results may differ materially from these forward-looking statements, and we do not undertake any obligation to update any forward-looking statements we make today except as required by law. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release we issued today as well as the risks and uncertainties described in our most recent annual report on Form 10 and in other filings made with the SEC. We published our quarterly financial press release and our updated corporate presentation to our Investor Relations website earlier this afternoon, and we ask you to review those documents if you have not already. With that, let me hand it over to Ali. Thanks, Aduke, and thank you, everyone, for joining us. Ali Kashani: We are at a pivotal moment for Serve Robotics. This past quarter, we crossed the threshold for 1,000 robots deployed. That's not just some round number. It's an inflection point. You can feel this in the sidewalks that we serve. The future of cities is autonomous, and we are at the forefront of this. Turning it into daily reality in these neighborhoods across the country. This is not just swapping humans for robots. We are unlocking new possibilities for cities. We are rewriting the operating system of our cities function. How goods move, how spaces are shared, how businesses reach residents. When the whole system upgrades like this, everything gets better. Safer streets, friendly and greener cities, and more prosperous businesses and workers. So why now? What's possible today that wasn't possible before? There are four forces that have really converged. First is physical AI. It's really finally caught up with our ambitions. Advances in distributed training, also the better onboard compute that is now available, lets us ingest orders of magnitude more sensor data. And that leads to incredibly more capable AI models that can help machines really understand the world in real time. Our perception and planning models are improving on the streets every single day. Each mile traveled enriches our dataset. Each model update expands where, when, and how quickly, and how safely we can move. And this all has a compounding effect. Second, every hardware component needed to create these advanced, inexpensive, and intelligent machines has matured. This includes powerful sensors that are now at mass scale and low cost, paired with motors and batteries that enable new vehicle form factors. Technologies like LiDAR sensors were unaffordably expensive just a few years ago, but now we have partners like Ouster who are shipping thousands of sensors each quarter in record numbers. That benefits everybody in the ecosystem because of the economies of scale. Third, consumers have adopted the convenience of online and on-demand ordering, and merchants need CapEx light and labor light capacity so that they can economically serve the demand. Restaurants have optimized their operations in the post-pandemic reopening. But they now need a way to unlock and realize that full potential. They want dependable, right-sized logistics that matches their demand by the hour. And that's what our fleet can deliver. And last but not least, it's the cities themselves. Cities are asking for quieter, cleaner, and less congested streets. Smaller vehicles made for specific use cases can now replace those two-ton vehicles that we've become so addicted to. And this is the future. Our robot's footprint is small. With an electric powertrain and a friendly presence. We earn the right to scale when we operate with safety and transparency and community respect, and when we are working closely with the cities that we serve. And we create these new jobs, full-time employee jobs, in neighborhoods that we're serving. Our third-quarter results prove that we are on the right track with all this. Our delivery reliability was nearly 100%, while our delivery volume increased 66% in a single quarter. And we continue to maintain a strong safety record. We now deliver for over 3,600 restaurants, which is an amazing 45% increase from the last quarter and more than a ninefold increase since last year. This is all proof that autonomy can be safe, reliable, and predictable even as we scale rapidly. We did all this while also expanding faster than anyone in our industry. In less than a year, we grew our fleet size 10x, our cities 5x, and our major platform partners 2x. Last month, we announced partnering with DoorDash, the largest delivery platform in the US and one of the largest in the world. Combined, Uber and DoorDash serve over 80% of the food delivery in the United States, which provides us an incredible reach to consumers and merchants. The scale that we've achieved in the last few months really changes things. Here's how to think about it. With a few dozen robots, you're running pilots. At a few hundred, you're starting to prove repeatability. Beyond a thousand, the system tips. We run more efficiently. The economics improve. The national partners really lean in, and our learning really speeds up. All of which makes every new city launch smoother and every new robot smarter than before. As we scale with precision, we've gone from one market to five fully operational hubs. Covering over 3,000,000 population. And well over 1,000,000 households. That's nearly a 70% increase in a single quarter and more than a tenfold increase in our coverage compared to the same time last year. Not only have we 10x'd our fleet, we've 10x'd our reach. And as importantly, each neighborhood adds to our reach data sets. With new and novel edge cases, which really accelerates our ability to learn across the network, and it compresses our timeline for future city launches. On that note, I'm excited to share with you our next three expansions. We've just been greenlit to expand into Buckhead, Georgia, Fort Lauderdale, Florida, and Alexandria, Virginia. Before the end of this year. Alexandria also gives us a toehold in the Washington DC area. We're building the first truly national interconnected autonomous delivery network on a common AI software platform and operations stack. So that a single partner integration would light up multiple metros and thousands of restaurants at once. For example, in Q3, we announced our partnership with DoorDash. Coming in addition to our existing contract with Uber, this allows our existing robots to unlock an incredible amount of additional volume. A robot that's completing a delivery for DoorDash could do a delivery for Uber on its way back. So this would actually improve utilization levels for robots. And we are not done yet. In addition to our existing partnerships with Shake Shack and Little Caesars, we've also started delivering for Jersey Mike's Subs. The famed sub sandwich chain with over 3,000 locations nationwide. And while it's too soon to give details, we also expect to add another well-known national QSR brand to the lineup. So the partnership platform is growing nicely. And concurrently with that, we are also developing an unparalleled map of cities, the Kerck cuts and slopes and potholes and obstacles and patterns, a living atlas. That becomes a valuable asset and an operational advantage. And while we do that, we are also deepening our community bonds. At a very hyper-local level. With merchants and landlords and HOAs and precincts, we need to integrate respectfully. Into these neighborhoods as we grow. Now let's take a step back. Serve Robotics is pioneering a robotics and autonomy as a service platform. That packages the full power of our autonomy stack, our hardware, and our urban robotics operation playbook. With the last quarter's acquisition of YU Robotics, our platform is now increasingly reinforced by AI foundation models and scalable simulation-powered data engine. Under the hood of all these is the physical AI flywheel that powers everything. Our third-generation fleet leverages the best-in-class sensors. Which creates these proprietary urban datasets. And that in turn leads to better AI models, which then creates more efficient and more autonomous fleets. A better fleet expands our TAM and increases our operating domain and verticals that we can do. And that, in turn, creates more pull in the market for more robots. So more miles, it's more robots, it's more data, it's better AI and the cycle repeats itself. The integration of YU will actually accelerate this loop. Because it turns data into better models faster. And that leads to tangible gains in our delivery speed and autonomy and the market reach. Our library of long-tail edge cases is expanding faster than ever. And the latest data that we gather on weather and obstacles and prey and detours it all provides the learnings that are applied network-wide. So every robot is learning from every robot. And this AI flywheel that we are building the flywheel that's now accelerating, in turn, attracts exceptional talent. Our rare data scale and this real-world fleet presence that we have is pulling in elite builders, and they, in turn, ship better systems. And better systems attract even more elite builders. So the talent flywheel is also compounding. All the forces, that I mentioned are helping us execute our vision. I'm really proud of our team for reaching the 1,000 robot milestone last quarter. In September alone, we shipped over 380 robots. That is in a single month. That means we launched more robots in a single month than the prior quarters. This was a pivotal milestone. We promised to ship 2,000 robots by the end of the year, during our IPO, and we are on track to do it. With robot number 2,000 planned to deploy in Miami in mid-December. But we are not going to stop there. We envision a future where Serve Robotics' fleet reaches 1,000,000 robots deployed across cities globally. They will travel billions of miles annually. They become embedded into the core fabric of a modern city. And they unlock new possibilities. Our conviction is simple. We are entering the age where things will move at our will. But on their own. Autonomy will become this essential infrastructure in our lives. It's rarely noticed. Because it just works. But it's sorely missed. It's not available. And we want to be the company that you will trust to run this. On the path to 1,000,000 robots, we are still early. But with 1,000 robots operating from coast to coast, we've really just crossed that chasm where the technology and the market all say go. From here, every additional robot, every additional hour, every additional block, makes the whole Serve Robotics ecosystem more essential and more valuable to the entire network. We're building something durable, and we are just getting started. With that, I'll turn it over to Brian to cover our Q3 results in more detail. Brian Read: Thank you, Ali. It's great to be with you all today. This quarter marked another step change for Serve Robotics. One defined not only by scale, but by strategic execution. We advance in every meaningful area, expanding our fleet, strengthening our technology base, and executing with greater precision across operations, engineering, and finance. We've also been extremely opportunistic. During the quarter, we integrated two key acquisitions that deepen our competitive moat. Acquiring YU, a pioneer in urban robot navigation, using large-scale AI models, we're expanding our physical AI capabilities by accelerating our roadmap. As we further integrate YU into our autonomy stack, we expect it to create opportunities to enhance our leadership in autonomous delivery as well as to reduce data infrastructure costs and improve operational metrics over time. These integrations allow us to convert more of our operational data into faster model improvements and richer monetization layers. All while reinforcing Serve Robotics' position as the category's innovation leader. Our focus remains clear. To scale efficiently, deploy capital strategically, and translate our growing operational advantage into sustainable financial performance, all in service of building an enduring business in this new age of autonomy and physical AI. As Ali described, the Serve Robotics flywheel is accelerated. More robots, richer data, smarter AI, and stronger economics. Let's dig into our Q3 results showcasing how these effects translate into measurable financial impact and expanding leverage across our business. Total revenue for Q3 2025 was $687,000, an increase of 210% versus last year, and in line with our guidance provided for the quarter. Fleet revenue was $433,000. Significantly, this quarter, we saw branding revenue jump 120% sequentially over Q2. As we've mentioned previously, the growth of our robot fleet into the thousands unlocks a pipeline of large-scale branding opportunities, and we delivered on that in Q3. Software revenues continued to transition from one-time to recurring, and were $254,000 in the quarter. We delivered exactly what we said we would. Fleet revenue is becoming the predictable growth engine we've envisioned, and we're now meaningfully stacking platform and data services on those same routes. Gross margin performance this quarter reflected the balance between rapid fleet expansion and deliberate investment in our long-term efficiency infrastructure. As planned, we continue to build capacity ahead of 2026 scale. Expanding our operations footprint, onboarding new cities, and integrating the systems and teams from our recent acquisitions. These near-term investments are already yielding returns in the form of measurable operational gains across reliability and autonomy. Average daily operating hours per robot increased another 12.5% sequentially from Q2. Driven by the growing mix of Gen 3 hardware across our fleet. This is a strong leading indicator that each unit is capable of contributing more value. Robot intervention rates saw a meaningful reduction through the quarter, and further, our best-in-class sidewalk autonomy is getting more and more capable. We saw a consequential increase in the proportion of miles driven in autonomous mode in the last week of Q3 compared to the first week of the quarter. Indicating the return on continued R&D investment. Taken together, these factors drove higher autonomous run times which in turn drive improvements in our average speed. This leads to compounding gains. Even a small increase in the average speed corresponds to an increase in our potential delivery volumes. These efficiency improvements are compounding. Each additional robot, each additional mile, and each new market contributes data that sharpens our models and reduces human touch points across the network. On the expense side, we remain disciplined. Investing in the capabilities that drive our competitive advantage. GAAP operating expenses for Q3 were $30,400,000, increasing from Q2 from deliberate investments in new market launches, M&A integrations, and expanded operational capabilities to support our national scale. On a non-GAAP basis, operating expenses were $21,800,000. R&D remained our largest investment area, totaling $13,400,000 on a GAAP basis or $10,700,000 on a non-GAAP basis. Primarily directed towards advancing our autonomy stack, expanding our AI foundation models, and integrating new data and hardware capabilities from our recent acquisitions. These initiatives are accelerating our pace of innovation while positioning us for long-term cost structure. G&A and go-to-market spending remain disciplined and aligned with our city expansion cadence. We're executing with leverage. Adding cities, partners, and robots without literally increasing headcount or our overhead. Our approach remains consistent. Invest where we have clear line of sight to efficiency differentiation and scale advantage. While maintaining financial discipline and measured growth. On the balance sheet, we ended the quarter with $211,000,000 in cash and marketable securities. In October, we executed a soft sale that generated approximately $100,000,000, which will be used to fund working capital and expansion activities. CapEx for the quarter was $11,000,000 tied to robot production, market launch, and expansion infrastructure. Our strong liquidity and debt-free balance sheet remain a competitive advantage, providing us flexibility to scale responsibly and invest opportunistically. Adjusted EBITDA was negative $24,900,000, driven by operational expansion in the quarter expected to accelerate efficiency through 2026. And now to our outlook. Once again, we delivered results at the high end of our Q3 guidance range. Building on this momentum, we now expect to generate more than $2,500,000 in revenue for the full year 2025. Our underlying recurring fleet revenues, which exclude nonrecurring software, is projected to grow 3x year over year from roughly $600,000 in 2024 to roughly $2,100,000 in 2025. 2025 was a pivotal year focused on establishing our national footprint, deploying 2,000 robots, expanding into new markets, and deepening our partnership portfolio. With this groundwork in place, we remain confident in our ability to generate an annualized revenue run rate of $60 to $80,000,000. We intend to update 2026 full-year guidance early next year. Initial indications show our expansion and operational plan positions Serve Robotics to deliver roughly a 10x inflection in revenue during 2026. Q3 marked another step forward in both scale and precision. Executing with discipline, expanding intelligently, and translating operational progress into tangible financial results. Each quarter, our fleet becomes more capable, models more refined, economics more efficient. The foundation we've built across technology, partnerships, operational excellence, position us for sustainable growth through 2026. We're proud of what the team has accomplished this quarter and even more excited about the opportunities ahead. Serve Robotics is defining this category, and we're confident in our ability to lead it for years to come. With that, I'll hand it back to Aduke for Q&A. Aduke Thelwell: Thank you, Ali and Brian. We will now move into the Q&A session. First, I'd like to say a big thank you to all the investors and analysts who submitted questions via email. We really appreciate your engagement. First question, I think this might be for Ali. Do you expect to add more robots in 2026? If so, what would be the timing and magnitude of the addition? Ali? Ali Kashani: Thank you, Aduke. Yeah. I can take this one. So good question. We aren't going to share the specific numbers right now. Hopefully, we have more to share early next year. But I do want to explain how we are thinking about growth. As we are looking to get towards our 1,000,000 robots goal, what we want to do is make sure we grow quickly but also with precision and discipline. We've been really laser-focused in getting the fleets really efficient and effective every day and driving utilization. While at the same time layering new partners, going to new geographies, all of this makes that scale-up easier. So in a way, being efficient and growth kind of line up together. So in that sense, it's the same type of effort that it takes to get there. So we are definitely going to push on growth, but we want to do it responsibly. Aduke Thelwell: Alright. Thank you. Next question is about robot design. Could you provide details on robot design simplification and cost reduction, beyond economies of scale? Ali, do you want to take this one? Ali Kashani: Yeah. I'll take this one too. I think there's a few different factors here. First of all, there's a ton of progress that we've made when it comes to the robot design. We've made it a lot more modular, easier to manufacture, fewer custom assemblies. We've also really strengthened our supply chain to get better parts and at lower prices. So this both cuts down the cost of the material, but also the cost of assembly. At the same time as we improve our design, we've also benefited from our scale manufacturing. Obviously helps bring the cost down as well. And while all of that is happening, the broader kind of ecosystem of suppliers, they're also getting more mature. I think a really good example that I'm excited about is Ouster. They have done a phenomenal job bringing these advanced LiDAR sensors to market at scale. They're shipping a record number of sensors right now, I think thousands per quarter. And we are directly benefiting from that. And I think a lot of folks in the autonomous space would benefit from more affordable LiDAR sensors that just didn't seem within that realm just a few years ago. So combining our improvements to the design and our improved supply chain and our scaled manufacturing and the maturity of the ecosystem, that per unit cost of the robots is definitely coming down substantially to the point that as we've shared in the past, our Gen 3 robots are a third the cost of our Gen 2 robots. And, you know, we are going to keep pushing these improvements forward. Aduke Thelwell: Okay. Thank you for that. Next question. What are the next steps in your DoorDash relationship? How do you see that helping the business? Ali? Ali Kashani: Yeah. We are working very closely with our partner DoorDash. First and foremost, it's about integrating the robots into the fleet in a thoughtful way and planning the market rollouts over time. DoorDash obviously unlocks an enormous network of restaurants and consumers for us. We have over a thousand robots right now and soon 2,000 that can deliver for those customers. So the timing is perfect. And I expect that in the next few months, we will start to really grow the volume under the new channel with DoorDash. Basically. I do want to emphasize this is a really important milestone for us because we've always envisioned this multiplatform app approach. I think, you know, a single robot being able to alternate between the device from each platform from DoorDash and Uber, it's really, really important that we are able to do that, and I think we are now proving that we can. And this kind of interoperability actually increases our utilization, which in turn lowers the cost per day rate. And that actually benefits all of our partners as well. Aduke Thelwell: Perfect. Thank you. We have a question on acquisition. Can you quantify the autonomy effect from YU? For example, with average speed increase or with the ratio of robot to operators improve? Brian, do you want to take this one? Brian Read: Yeah, good question. And, I mean, I think the simple answer to start here is, you know, we're very early in this integration process to dive into those results exactly. And this is the type of integration that can take months. But, you know, we're actually doing the call here today from YU's office, and the excitement from the teams to hit the ground running as soon as the merger was completed was tremendous. And there's just a lot of excitement on both sides to go faster and deeper into that roadmap to bring those new capabilities into the fleet. You know, I think we think about it as part of a flywheel where over time, that integration will allow our robots to be faster and smarter, while maintaining the safety and reliability that we focus on daily. And that, in turn, then drives efficiency and utilization ultimately landing in unit economics, and overall the benefit for these acquisitions. Aduke Thelwell: Okay. Thank you. Our next question: What are some differences between deployments in different cities? What have you learned from new deployments and expansions that will help you scale further? Ali, can you take this one? Ali Kashani: Certainly. Yeah. You know, each city has its own distinct personality. It's like they're different in ways that's actually very helpful for us and honestly, fun for our team as we've been expanding, seeing, for example, in Atlanta and Miami. Learning about humidity and the different kinds of pedestrian intersections and city design compared to, you know, what we had in Los Angeles before. They have different widths in their sidewalks, different nuances about how, you know, the best routes traversing would actually look like. Or our new market in Chicago, it's an incredible place for getting data on really dense urban environments, with cold weather where you have to look at battery efficiency and snow detection and traction. So a lot of things that we tried to test in advance now are being put to test in real life. And we are learning a lot from that. What's really powerful, I think, is that as we go to these new cities, it really enriches the models. And the data in this new environment actually helps the model across the boards for the entire platform. And that actually means that every subsequent city launch, as I mentioned earlier, gets more reliable and better. In fact, we saw this in Chicago when we first launched. It was the fastest market for us to get to our SLAs that were comparable to our more mature markets. So it kind of proves that the playbook is working well and the robots are getting smarter. Brian Read: And just to finish that from a financial standpoint, I think too is we're using these learnings. We're translating them directly into efficiency through our operations teams. So we're seeing, you know, shorter payback periods with the expansion. We're seeing the higher utilization as we deploy into new markets and neighborhoods. To continue the expansion. And that's exactly what we're building towards. So we've been, you talking internally about, you know, describing this as being sharper with our scale, and we believe all of these technology improvements are going to compound which will show up in our financial results. So, you know, that is really what's positioning us to expand in a disciplined capital-efficient way in 2026. Aduke Thelwell: Okay. Thank you. Next question. What can you share about the pipeline for software and data sales? How are you looking to accelerate software revenues in 2026 and beyond? Ali Kashani: Yeah. This is a good question. You know, the revenue pipeline for these other opportunities, like the delivery platform, the software that's powering the robots, as well as the data that's generated by the robot. It's been a really strong pipeline. We are in substantial discussions with multiple partners that want to basically use the platform or the data that we are creating. And think, you know, we are trying to be smart and selective, in terms of who we engage with. And, you know, apply some filters there to pick the right partners. But the amount of inbound interest we're getting really reinforces that what we have is quite differentiated. And I'm hoping that as we move some of these conversations forward and, you know, have more updates to share, we'll actually tell you more about those relationships as well. Brian Read: And if I can to also wrap a financial aspect into this question is, you know, as the fleet scales, these data and AI insights are going to become more valuable, right, to all of the people Ali just mentioned that we're talking to and the substantive discussions we're having. So that's going to enable our team to look at opportunities for, you know, adding more recurring software as we go throughout '26 and focus on that robotics and autonomy as a service offering. So it's really a long-term vision. Right? This is a balanced model. We're focused on diversifying revenue, and fleet revenue is that foundation. With software and data as that real high-margin accelerant. That we're focused on as we enter 2026. Aduke Thelwell: Okay. And our last question, you mentioned the $60 to $80,000,000 run rate. When do you expect to reach that run rate? Brian, can you take this one? Brian Read: Yeah. Let me give a little bit more color on, you know, in the script, we did mention the, you know, outlook for 2026. So we'll point everybody back to that commentary, but, obviously, this is a good question to end on here as we think about this Q3 update. So the path to hitting $60 to $80,000,000 is underway. Right? And that's really the final step when we think about the ambitions we laid out a few years ago to deliver 2,000 robots. Right? $60 to $80,000,000 is the, you know, the endpoint. But along the way, we've exceeded a lot of expectations. Especially as we near the end of 2025. And that's been a testament to the team and how we've delivered. I mean, to summarize what we've talked about on a lot of the earnings calls, you know, we are on track to deliver the 2,000 robots. We've expanded into multiple markets with more coming. We talked about new partnerships and adding, you know, top-of-the-funnel orders into our pipeline. But last but not least, we have the acquisition. So across all of these, you know, verticals, we are firing, and we're really exceeding what we set out to achieve in 2025. I'd like to remind investors and anybody that wants to understand our story that that's all, you know, great. But, critically, we're maintaining the safety and the reliability throughout that network as we're building. And so the final boss, as Ali likes to say, is to achieve that financial milestone is continuing to improve the utilization across the fleet. And so we have that momentum through 2025 and accelerating into 2026. To approach that $60,000,000 run rate target. Be clear, I think we're still more than twelve months out and we'll certainly, as we indicated, we'll have more to say on this in the next call. Early next year. Aduke Thelwell: Okay. Thanks so much. That's all the time we have for today, and that concludes our session. Thank you for your thoughtful questions and participation. And with that, I hand it over to the operator. Operator: That concludes today's call. You may now disconnect.
Operator: Good afternoon. My name is Irene, and I will be your conference operator for today. At this time, I would like to welcome everyone to AlTi Global, Inc.'s Third Quarter 2025 Earnings Conference Call. During the call, your lines will remain in a listen-only mode. There will be a question and answer session. I would like to advise all parties that this conference call is being recorded. And a replay of the webcast is available on AlTi Global, Inc.'s Investor Relations website. Now at this time, I will turn things over to Lily Arteaga of Investor Relations for AlTi Global, Inc. Please go ahead. Lily Arteaga: Good afternoon to everyone on the call today. Joining me are Michael Tiedemann, our CEO, and Michael William Harrington, our CFO. We invite you to visit the Investor Relations section of our website to view our earnings materials, including today's presentation. I would like to remind everyone that certain statements made during this call may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to comments made during the prepared remarks and in response to questions. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied. For a discussion of these risks and uncertainties, please refer to AlTi Global, Inc.'s filings with the SEC, including our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. AlTi Global, Inc. assumes no obligation to update any forward-looking statements. During this call, we may refer to non-GAAP financial measures. Reconciliations to the most comparable GAAP measures can be found in our earnings materials and related filings. Lastly, please note that the recast financial results referenced in the presentation for 2025 reflect preliminary unaudited statements with respect to such results based solely on currently available information, which is subject to change. With that, I'll turn the call over to Michael Tiedemann. Michael Tiedemann: Thank you, Lily, and good afternoon, everyone. The third quarter reflects continued execution of the strategy that we have laid out, focusing the firm on our core wealth management business, simplifying the organization, and reducing structural costs so that earnings scale directly with revenue. As previously disclosed, we placed our international real estate business in administration this quarter. The business has been a drag on margins as discussed in prior calls. The charges associated with placing it in administration will be our final restructuring charges related to it, and the business will no longer take management attention going forward. This results in cleaner financials and bottom-line improvements as we move ahead. We also moved to a single reporting segment which provides cleaner transparency into performance and supports a more direct evaluation of operating leverage. We continue to operate from a position of strength. Our platform is global, integrated, and purpose-built to serve the complex needs of ultra-high-net-worth families, foundations, and endowments. By combining institutional investment capabilities, deep access to alternatives and impact, and the infrastructure of a multifamily office, we deliver seamless solutions through teams across nine countries and 19 cities. Our business remains anchored in long-duration advisory and OCIO relationships with ultra-high-net-worth families. Since 2021, having approximately 96% client retention, with an average tenure of ten years, and an average AUM per client above $50 million. These long-standing relationships are built on a foundation of trust, and their wealth compounds over time through market cycles with diversified exposures to both public and private markets. A core differentiator is our ability to deliver independent advice at scale, particularly in private markets. We leverage our platform to negotiate preferred access and pricing with leading managers. A perfect example of this is our partnership allocating capital alongside our largest shareholder Allianz within the private credit space. This joint venture continues to grow, outperform, and accrue to the benefit of our client base. Consolidated revenue for the quarter was $57 million with approximately 95% generated by recurring management fees, and adjusted EBITDA was $6 million. Our results this quarter also include a non-cash valuation adjustment related to our interest in the arbitrage strategy. This adjustment is accounting-driven, reflecting valuation at a single point in time during a period of lower AUM. Despite this valuation adjustment, the strategy is performing well, up 7.5% through September, driven by an improved regulatory environment and strong market backdrop. At AlTi Global, Inc., our cost base is structurally lower and continues to decline as the efforts of our zero-based budget program come into effect. Once completed near 2026, these initiatives are expected to generate approximately $20 million in recurring annual gross savings across non-compensation categories. This disciplined approach to cost complements the robust organic growth we are seeing across our wealth business. Internationally, we added more than $600 million in assets in the quarter alone, including a $240 million mandate secured through collaboration between Miami and Singapore offices, and a $130 million mandate driven by our impact investing team in Zurich working with specialists from Contura in Germany. Year to date, the international growth has been substantial, with over $1.2 billion added from both new clients and expanded relationships with existing ones. In the US, growth continues to accelerate as we strengthen relationships with large sophisticated families and broaden our presence in priority markets. Through September, we secured nearly $1.1 billion in new and expanded mandates reflecting strong demand for our capabilities. Our pipeline remains exceptionally robust, featuring significant OCIO opportunities, and while onboarding timelines vary, our consistent execution and improved expertise give us confidence in converting these prospects into enduring client partnerships. Building on this progress, we are sharpening our growth focus through four distinct segments: women who manage wealth, family offices, endowments and foundations, and established wealth. By tailoring our investment and service strategies to these segments, we aim to foster stronger internal alignment and create clear differentiation in the marketplace. Early indicators are positive. Collaboration is accelerating, and after a brief slowdown last year, our prospect win rate is returning to normal levels. In parallel, we have built and continue to invest in operational centers of excellence: Lisbon for international operations and Delaware for US operations. These hubs were selected for strategic positioning and cost-effectiveness, enabling us to create meaningful operating leverage as we scale. We are also refining our pricing models, with a particular focus on international wealth management. These enhancements will drive greater consistency across our global platform, align pricing with the complexity and value of services we deliver, and strengthen operating margins, all while ensuring a fair and transparent experience for clients. Alongside these efforts, we are positioned to fully realize the benefits of substantial investments made over the past few years. These projects have strengthened our platform through a unified global tech infrastructure, consolidated investment capabilities, service, and a more robust finance function leveraging best-in-class systems. Taken together, these strengths combined with our singular focus on serving the global ultra-high-net-worth segment position AlTi Global, Inc. as a truly differentiated firm with a scalable control environment that is uncommon in our industry. While these investments have weighed on our short-term profitability, they were made with a clear long-term vision creating a solid foundation for growth. To summarize, restructuring of the international real estate business is complete. The cost base is structurally lower and continuing to decline, and the platform is simplified and scalable. As new mandates and assets move into billing, revenue growth will convert into margin expansion. With the firm now squarely focused on organic and strategic growth within our core segment, we expect results to reflect this clearly as we move forward. With that, I'll turn it over to Michael William Harrington to walk through the results for the quarter. Michael William Harrington: Thank you, Michael, and good afternoon, everyone. Let me begin with two important structural changes that shaped our third-quarter results. First, our international real estate business being placed under administration in July qualified it to be presented as discontinued operations. As such, we have restated prior periods to isolate continued operations in accordance with US GAAP. Second, in line with this presentation, we have unified our financial reporting into a single segment. These changes reflect our strategy to streamline and focus on our core wealth management franchise, and the enhanced transparency improved comparability, and better reflect the business we are building and scaling. Now turning to the quarter. Revenues for the third quarter were $57 million, up 10% year over year and 9% sequentially, reflecting continued momentum in our wealth management business. Growth was led by management fees of $52 million, up 7% versus last year, driven by robust asset growth. Additionally, revenues benefited from a year-over-year increase in incentive fees and the arbitrage fund. Importantly, 95% of revenues this quarter were recurring, underscoring the durability and predictability of our model. Assets under management reached $49 billion at quarter-end, up 6% year over year, fueled by strong underlying portfolio performance and the acquisition of Contura last quarter. Sequentially, AUM increased 4%, reflecting both portfolio performance and meaningful net new asset growth, clear evidence of the momentum Michael highlighted as a core driver of future earnings power. Operating expenses for the quarter were $86 million, up from $61 million in the prior year period. The increase was largely driven by nonrecurring noncash charges, including a $4 million client redress provision and a $16 million write-off of receivables due from our disposed international real estate business that were formerly intercompany balances. The year-on-year increase also reflects the acquisition of Contura. Within onetime items, normalized operating expenses were $51 million versus $43 million in 2024. Normalized compensation expenses totaled $32 million compared to $28 million, primarily reflecting the inclusion of Contura and the bonus provision associated with the arbitrage incentive fee recorded this quarter. Normalized non-compensation expenses were $19 million compared to $15 million in the prior year period, driven by Contura's consolidation and higher professional fees and G&A expenses. Sequentially, normalized compensation expenses rose by $3 million, primarily driven by the bonus provision. In sharp contrast, noncompensation expenses decreased approximately $600,000 from the prior quarter. Even after absorbing an additional month of Contura, which contributed nearly $500,000 in cost, excluding Contura, the quarter-over-quarter reduction exceeds $1 million, underscoring the tangible impact of our zero-based budgeting initiative. This disciplined approach is delivering measurable savings across multiple categories, including technology, professional fees, marketing, and travel and entertainment. Building on these results, the initiatives implemented in these categories are delivering tangible benefits and will continue to contribute meaningfully to the quarters ahead. Importantly, additional savings are expected to come online soon as we begin to realize the impact of occupancy optimization across key offices, and the wind-down of legacy technology and vendor contracts. Together, these efforts represent the next phase of our zero-based budgeting strategy and are central to our trajectory, reinforcing our commitment to operational discipline, and positioning the company for sustained margin expansion. Other loss for the quarter was $28 million, primarily driven by a $35 million noncash impairment of the arbitrage fund. This was partly offset by gains from fair value adjustments on certain investments. Consolidated adjusted EBITDA in the quarter was $6 million compared to $12 million in the prior year period. The 2024 quarter benefited from nearly $3 million in interest income while the 2025 reflects the full impact of Contura adding approximately $3 million of normalized cost alongside higher professional fees and G&A expenses. Importantly, nearly all of the $93 million in EBITDA adjustments, approximately $87 million, are noncash in nature. Of the cash add-backs, only $1 million were nontransaction related. This is notable as it points to the normalization of the business going forward. The tax line this quarter reflects a noncash charge of $30 million, including the impact of the 100% valuation allowance related to our deferred tax asset. This adjustment was necessary due to uncertainty around future realization. Finally, on a GAAP basis, we reported a net loss of $107 million for the quarter, primarily reflecting the noncash nonrecurring charges related to the exit of the international real estate business, the impairment of the arbitrage intangible, and the valuation allowance against our deferred tax asset. Adjusted net income, which excludes nonrecurring items, was $1 million. The net loss from discontinued operations was $20 million for the quarter, reflecting the full impact of placing the International Real Estate Division in administration. Upon deconsolidation, intercompany balances were reclassed as third-party receivables and payables. As part of its commitment to an orderly wind-down, AlTi Global, Inc. will provide financial support and transactional services through the wind-down period ending 12/31/2027. The support will be reflected as an adjustment to the payable balance and reported under continuing operations. While this quarter includes significant charges, these nonrecurring costs should not mask encouraging quarter-over-quarter trends on a normalized basis. The positive impact of our efficiency and productivity initiatives is starting to come through. As we enter 2025, AlTi Global, Inc. stands on a stronger, leaner platform with a normalizing expense base driven by organizational streamlining, zero-based budgeting implementation, and the real estate exit. Combined with a robust organic growth outlook and pricing initiatives Michael outlined, we believe the business is well-positioned for sustainable margin expansion. With that, I'll hand it back to Michael Tiedemann for his closing remarks. Michael Tiedemann: Thank you, Mike. Before we open the line for questions, I want to reiterate what sets AlTi Global, Inc. apart. Our platform is purpose-built for the world's most sophisticated families, combining global reach, deep expertise, and a cultural partnership that endures across generations. The resilience of our business, anchored in long-standing relationships, high client retention, and a commitment to independent best-in-class advice, gives us confidence as we navigate periods of change. As we sharpen our focus on our core wealth management business, we are investing in what matters most: our clients, our people, and the capabilities that drive sustainable long-term growth. We believe the actions we have taken this quarter position AlTi Global, Inc. to deliver on our mission, helping families manage wealth with purpose, and building lasting legacies. Thank you for your trust and partnership. Operator, let's open the line for questions. Operator: Thank you. We will now be conducting the question and answer session. If you would like to ask a question, it may be necessary to pick up your handset before pressing the star keys. The first question we have is from Wilma Burdis of Raymond James. Please go ahead. Wilma Burdis: Hello. Good evening, you guys. Maybe you can help me just a little bit more about normalized EBITDA versus the 6.2% that you guys posted in the quarter. I think you mentioned that normalized expenses were around $35 million lower than the operating expenses on a reported basis. So I do not know. Should we add that back to the EBITDA? How should we think about that? Thanks. Michael William Harrington: Yeah. I'll take that. Yes. Yeah. You should add that back. I mean, going to my comments around the adjusted EBITDA, I think that's what you should focus on. That's what's been normalized. Yeah. So we definitely have the 35 backups gonna be nonrecurring. I'm not sure I'm answering your question. Wilma, could you be more specific? Wilma Burdis: I think what I'm trying to get into a little bit more is just how we should think about a normalized level of EBITDA. So you know, I guess you've done some of the ZBB work. You've had different charges. Just any way you could help bridge me to a more normalized level of EBITDA on a go-forward basis would be helpful. Michael William Harrington: Well, we are avoiding providing guidance. So I think our commentary is trying to point in that direction. We have a lot of confidence in terms of how we are managing costs and the direction that those costs are headed. So as I noted in my comments, we feel good about what's coming online in terms of savings. So any increases we might have, for example, like when you get to the end of the year and Q1, you have merit increases that we should be able to mute that because we are gonna have offsets to that in terms of to keep that from rising. And then as Michael noted, the pipeline activity is very strong. The last couple of quarters, you've seen our management fees really grow over up 15% from Q1. And the combination of those two and some other initiatives we have going on, like the pricing initiative that Michael referenced, should really lead to an expanding margin. And I think we have a high degree of confidence around that outcome. Is that helpful? Wilma Burdis: It is helpful. I guess, you know, if I think about this year, what you guys have posted, you know, probably for the first March, something in the, you know, 40 maybe a little bit more than that, 40-ish million range for adjusted EBITDA, and then you've got the ZBB coming on board as well and then some growth. So is that does that kinda give us a good decent type run rate to build off of? Michael William Harrington: Without giving Well, if I was building off, I build off the $6 million number we were providing as adjusted and then expand off of that number. Wilma Burdis: Okay. So that's a good number. It's kind of a run rate then you think and then, you know, you're adding ZBZ and growth. Michael William Harrington: Got you. Wilma Burdis: Thank you. That helps. And then you made commentary about just noncash versus cash. Is there any way I do not think that this is something that you guys provided a lot of detail in the way on in I can recall historically, but is there a way to back into cash flows or anything along those lines? Thanks. Michael William Harrington: Well, you could or when our filing's made, we do not provide that in this material we have here, when our filings made, you'll be able to see the cash. Changing cash for the period. So we did consume some cash this period. So you'll see that when we file our 10-Q. But on a go-forward basis, I expect cash to or cash and our cash flow to improve. Just based on the performance of our business improving. I got you. Wilma Burdis: Could you just go a little bit more detail on the impairment in the arbitrage fund, which was I think it was around $35 million. Michael William Harrington: Sure. Yeah. So the valuation was used last September was a function of certain projections, certain assumptions that are made around the business and its performance. And part of those assumptions were certain growth rates are applied to the business. And so that as you can see, the results for the year, the assets haven't grown or actually down from 9/30 of '24. So that caused us to have to take a look at the assumptions that we had made around the valuation last year. And so we refreshed all that with new assumptions around that go-forward growth rates. And that when we did the math that also have to earn impairment on the business. As Michael noted, from a performance standpoint, the strategy is doing very well. It just didn't grow last year. Actually, shrank. So in terms of AUM, but it's doing very well. It's having one of its best years in a number of years. So that's the reason for the impairment. Wilma Burdis: Got it. Makes sense. And then I think you guys touched on this in the opening comments. But just to confirm, should we consider the restructuring to be complete? Michael William Harrington: Yeah. The UK yeah. We're that's behind us. We're as with this quarter, there won't be additional charges related to that business. And as we noted in the commentary, we'll provide support for the orderly wind-down, but that'll be that'll be done. We'll be making cash payments to support that, but there won't be P&L impact going forward. It'll just be a reduction of the payable that we have to the administrator. Wilma Burdis: Got you. But I just mean, generally, is there a lot more restructuring needs to be done outside of that piece as well, or maybe just give us a little bit of an indication? Michael William Harrington: You mean, of the entire business? Wilma Burdis: Yes. Michael William Harrington: Not that I'm aware of. No. Wilma Burdis: Okay. And then any plans for a buyback or anything like that? Michael Tiedemann: Michael, do you wanna answer that? Would you like me to answer that question? Michael Tiedemann: The buyback, I mean, buyback share repurchases on the list of topics to be discussed with the board in our next meeting. So we are always evaluating that in the share count and the dilution as part of our strategy conversations. Wilma Burdis: Okay. Makes sense. And are there any additional noncore parts of the business that could be divested potentially hopefully, for a gain? But is there anything that you're considering proving at this point? Michael Tiedemann: Again, we are always looking at the optimization of the balance sheet. In terms of asset values, core segments of growth, utilization of cash from any asset sales or just reduction of costs as we've been more focused on previously. In terms of putting a segment to administration. So these are all parts of evaluations that are ongoing and continuous. So the answer is yes, always, but nothing to be announced. Wilma Burdis: Okay. Great. And then, Mike, maybe you could talk a little bit about the pipeline for deals and other opportunities to grow. Michael Tiedemann: Yeah. So the advantage I believe we have or certainly one of the benefits of being a global business, is the fact that there are opportunities, there are cities that we do not operate in, and there are obviously opportunities globally for us to evaluate. As we've matured as a public company and as we've been growing and executing and successfully integrating teams, we have more and more proof points to explain to any prospective team, individual, or firm that might be a great strategic fit for us. So the pipeline is global. We as obviously, we expanded within Germany. At this point internationally, we would like to focus on densifying the existing jurisdictions and areas in which we operate. And there's a lot of business growth pipeline opportunities in The Middle East, so that is an obvious area for us that we're evaluating quite seriously. And then throughout The US, there are a few cities and major cities that we do not currently have a presence where there are either teams to bring into the firm or potentially firms to add that we're evaluating as well. Wilma Burdis: Great. And then hopefully, I'm okay to ask another question. But are there any other strategic conversations that are ongoing that we should be aware of? Thanks. Michael Tiedemann: We again, as a firm, we are always having internal strategic conversations about the firm, the stock price, acquisitions, and so as just as a firm, we are always evaluating the business at all, but, there is nothing to comment on. Wilma Burdis: Okay. Thank you. Operator: The next question we have is from Chris Kotowski of Oppenheimer and Co. Please go ahead. Chris Kotowski: I was just wondering, the impairment that you cited, I was a little fuzzy on that, is Do we see that on the intangible asset line on the balance sheet? So it's, like, not a part of an investment that was written down. It's the intangible. Right? Michael William Harrington: Correct. That's right. The intangible related to the investment management contract. Yep. Chris Kotowski: Okay. And then I was also wondering the you had, I think, in the past talked about the Contura that, you know, had a fairly large headcount, a lot of service, and you know, that you were trying to recruit more wealth management people there, and I'm just wondering if you can update us on how that's going. Michael Tiedemann: The integration's going very well. We have everything from tech investment team, marketing team, all working on integration plans fully agreed by all teams. And the marketplace of Germany is a very exciting one for us. So there have been some big collaborations already and some early wins that were meaningful. So it's important for us to, number one, evaluate the talent within any firm or team that joins us to make sure that we understand where that talent resides within the organization. There are times where a single office or someone working within a firm in a single office can actually become elevated and be part of the global firm. And so we're also evaluating investment portfolios. There's a lot of integration that occurs in the first year. It's going very well. And the team on the ground is very excited about it. And they're very happy to be integrated and also we're evaluating opportunities jointly. Chris Kotowski: Okay. And then I was wondering about the two-year time frame. I thought I heard you say 12/31/2027 is kind of the final should I understand that as that, like, the final liquidation of all the UK assets and you know, does that time frame incorporate any settlement of any, you know, litigation issues that might still be outstanding? Michael William Harrington: The December 2027 is just the that's the administrator's timeline. That's what they're targeting is to complete their work in terms of resolving all the matters where they get to the liquidation of the assets and the repayment to creditors. We're not involved in that and do not have any influence or on the timing of that. That's just their kind of standard operating plan. We will provide support through December 2027, and then thereafter, we will not. So if the administration continues after that, we will not be obliged to. We will have provided all of our support that we're going to provide at that point. Chris Kotowski: And what's the nature of this? Michael William Harrington: I'm sorry. Go ahead. Chris Kotowski: I was gonna ask. What's the nature of the support that you have to provide? Michael William Harrington: Well, we put in a funding agreement between us and we're in the final stages of negotiating that, but that the funding agreement will be consistent with the payable that's on our balance sheet now that's due to a third party. When you get to read our 10-Q, this is described in a lot of detail on there. And you'll see we have a payable to a third party. That third party is the administrator and we will relieve that payable by sending cash to the administrator over on a set schedule, which we're again in the final stages of negotiating that schedule. So it'll be over that time of the administration, which is the next eight quarters because the first payment won't be due till 2026. Okay. And from a legal perspective, the matters that were related to the international real estate business, they are now the responsibility of the administrator. Part of the reason we took the action we did was to have those matters be then transferred to the administration. So on a go-forward basis, we mitigated that exposure. Chris Kotowski: Okay. Great. Alright. That's it for me. Thank you. Wilma Burdis: Thank you. Operator: There are no further questions at this time. I would like to turn the floor back over to Michael Tiedemann for closing comments. Michael Tiedemann: Thank you all for dialing in today for your interest and support. And if there are any further questions, please do contact Lily Arteaga and our IR department. I wish everyone a happy Thanksgiving and happy holidays for us in the month of then. Cheers. Operator: That concludes today's conference. Thank you for joining us. You may now disconnect your lines.