Giuliano Anderes-Bologna • Stifel Financial Corp.

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CFO Robert O'Hare clarified that the guidance does not imply an acceleration from the current quarter's growth rate and that they expect moderation from the elevated growth seen in April. CEO Max Levchin noted a recent ABS deal will cause a modest uptick in off-balance sheet funding but did not provide specific mix guidance.

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CFO Robert O'Hare clarified the guidance does not imply acceleration from the current quarter's 36% growth, as the high end of the range is 34%. He noted that while April growth was strong, they expect moderation. Regarding funding, he explained that a recent non-consolidated ABS deal will cause a modest uptick in off-balance sheet funding but did not provide specific guidance on the overall mix.

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CFO Sanjay Datta clarified that take rates in the core near-prime segment are largely stable and the change is mix-driven. He explained that acquisition costs for prime borrowers are not yet lower because the marketing programs for that segment are still nascent, but emphasized the additional volume is dollar-accretive to the bottom line.

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CFO Sanjay Datta reiterated that co-investment is targeted in the mid-to-high single-digit percentage of committed loan flow, with the total dollar amount scaling with the platform. He stated that take rates were in a similar ballpark to prior quarters, with a marginal decrease due to product mix shifts toward T-Prime and ongoing pricing experimentation.

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CEO Joseph Adams explained that prioritizing the SCI creates a 'virtuous circle' where a stronger SCI leads to more committed engine exchanges for FTAI, improving visibility and future margins. He stated that while about 30% of Q1 activity went to SCI, the full-year expectation is closer to 20%. Adams confirmed this is additive growth with no cannibalization, as the core business is also growing materially and is primarily constrained by production capacity.

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CEO Joe Adams confirmed this is a key dynamic, creating a ~25% growth opportunity as aircraft move to smaller operators who require FTAI's services. He noted the addressable maintenance market will remain large at $22 billion annually through 2030. COO David Moreno added that the SCI is designed to accelerate this strategy, allowing FTAI to acquire these assets and offer a fully integrated solution of ownership, leasing, and maintenance. Adams emphasized that from the airline's perspective, they deal with a single, stronger partner in FTAI.

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CEO Joe Adams emphasized that growth is primarily organic, driven by the massive addressable market for CFM56 and V2500 engines, where FTAI still has less than 5% market share. He pointed to the tripling of productivity at the FTAI Canada facility as a prime example of how the company is capitalizing on its internal organic growth opportunities rather than focusing on external acquisitions.

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CEO Scott Sanborn confirmed the strong growth trajectory, attributing it to successful marketing initiatives and product innovation, which position the company well to achieve its Q4 targets. CFO Andrew LaBenne explained that marketing spend is currently in a less efficient learning phase, with optimization expected by Q3 or Q4. LaBenne also noted that existing bank partners remain active and new banks are in the pipeline for future purchases.

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CEO Scott Sanborn explained the typical seasonal pattern involves growth in Q2 and Q3, followed by efforts to hold volume relatively flat in Q4 and Q1. He confirmed that marketplace demand currently exceeds production, so funding capacity is not a concern. CFO Andrew LaBenne noted that as the company expands into less efficient marketing channels to drive growth, the marketing expense rate will increase, but shifting volume to HFS also allows for upfront recognition of origination fees, creating a net positive P&L impact.

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CFO Drew LaBenne confirmed the $1 billion in future loan purchases is incremental to recent sales and will be treated as marketplace whole loan sales. He also highlighted positive trends for deposit costs in Q4, including maturing high-rate CDs and the exit of a high-cost commercial customer. CEO Scott Sanborn noted it was early but initial data shows roughly 70% of LevelUp Savings users are engaging in the positive savings behavior required for the higher rate.

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CEO Kenneth Nicholson explained that Jefferson is pursuing deals for crude oil, NGLs, and renewables like ammonia. He clarified that Long Ridge's full $160 million EBITDA run-rate will be reflected starting in Q3 2025. Regarding Transtar, Nicholson stated that no potential U.S. Steel ownership outcome is viewed as negative. He also expressed high confidence that refinancing the company's 10.5% bonds and 14% preferred stock would be a highly accretive transaction.

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CEO Kenneth Nicholson explained that the Long Ridge refinancing is highly accretive. By resetting power sale hedges from ~$28/MWh to the current market rate of ~$42/MWh, it could generate approximately $50 million in incremental annual EBITDA. He also noted that the holdco's 10.5% notes could likely be refinanced with a coupon in the 7% range, particularly after the credit-enhancing Repauno and Long Ridge transactions are completed.

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Michael Nierenberg, Chairman, CEO, and President, clarified that they prefer not to transfer assets between REITs but will have both entities co-invest in deals. He affirmed they look at all accretive M&A opportunities, including for the mortgage company and MSRs, and noted growing demand for MSR funds. On the C-corp conversion, he suggested it could be pursued in the near term, possibly concurrently with other strategic moves, if it is highly accretive for shareholders.

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Michael Nierenberg, Chairman, CEO, and President, clarified that Rithm prefers not to transfer assets between its REITs but would have them co-invest in deals. He confirmed the M&A team actively evaluates all accretive opportunities, including mortgage companies and MSRs. Regarding the C-corp conversion, he indicated it could be pursued concurrently with other strategic moves, stating that "anything is on the table."

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CEO Jon Witter affirmed that the company has the necessary products or could quickly adapt them to serve both the Grad and Parent PLUS markets. He stated that the company has done the operational and financial readiness planning and would likely manage any outsized volume from either source through its established balance sheet growth and loan sale framework.

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CFO Benjamin Rosenblum acknowledged they explore all options to move capital but noted obligations to Sound Point complicate the process. COO Robert Bailenson described the international business as having better returns and shorter tenors than domestic business. President and CEO Dominic Frederico affirmed the company's proven expertise in loss mitigation and expressed confidence in their strong, senior position regarding the Thames exposure.

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CFO Amber Kramer acknowledged a potential short-term timing mismatch but emphasized the company's long-term view where production consistently replenishes servicing runoff. CEO Terry Schmidt stated that organic growth is the near-term focus, but M&A could become more active if high rates are prolonged. Amber Kramer added that Guild has significant liquidity, with $295 million in excess MSR line capacity and low leverage, positioning it to capitalize on any opportunities.

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