Josh Chen

Josh Chen inquired about the B7-H4 ADC, specifically its Phase 3 initiation timeline (first or second half), target indication, and differentiation from competitor molecules.

Answer

Mark Lanasa, SVP and Chief Medical Officer, confirmed plans to disclose B7H4 ADC efficacy and safety data in H1, noting rapid Phase 1 progression. He stated that more details on differentiation and Phase 3 indications would be shared upon data disclosure, expressing satisfaction with emerging efficacy and safety.

Josh Chen asked about the B7-H4 ADC program, including the timing and indication for its Phase III trial initiation, and its differentiation from competitor molecules.

Answer

Mark Lanasa, SVP and Chief Medical Officer, highlighted the B7-H4 ADC's swift Phase I progress and the plan to disclose efficacy and safety data in H1 at a major medical congress. He noted satisfaction with emerging efficacy and a favorable safety profile, aiming for a Phase III start as soon as possible, with more details on indications to follow.

Josh Chen asked about Xometry's momentum in adding active suppliers, particularly larger ones, and the company's outlook on achieving breakeven free cash flow in the near future, considering its growing EBITDA.

Answer

Sanjeev Singh Sahni, President, emphasized that supplier growth is crucial, with approximately 5,000 active suppliers. He noted the focus on balancing the network for size, geographical breadth, and process depth, especially for large enterprise accounts requiring specific certifications. James Miln, CFO, stated that with the first full year of adjusted EBITDA profitability at $18.5 million, he expects Xometry to achieve sustainable free cash flow positive within the next year, particularly when quarterly revenue reaches a $225 million run rate.

Josh Chen asked about Xometry's momentum in adding active suppliers, specifically if the focus is on larger suppliers, and about the company's thoughts on potentially achieving breakeven free cash flow in the near future.

Answer

Sanjiv Singh Sahni (President) explained that supplier growth is key, balancing the network for size (number), breadth (geographical spread), and depth (processes) to meet the needs of large enterprise accounts, including certifications. James Miln (CFO) stated that Xometry expects to reach sustainable free cash flow positive over the next year, having achieved its first full year of adjusted EBITDA profitability. He noted that operational cash flow was positive at $6 million in 2025, and with CapEx around 6% of revenue, free cash flow positive is expected when quarterly revenue hits a $225 million run rate.

Josh Chen asked for details on UL Solutions' exposure to data centers, including specific business areas involved and the total size of this exposure. He also inquired about the historical source of 'excess costs' that the broader expense reduction initiative is targeting, and what factors are now enabling these costs to be removed.

Answer

CEO Jennifer Scanlon described data center exposure through safety challenges related to rapid energy evolution, power infrastructure, AI compute density, thermal environments, and innovations in DC systems and cooling, noting UL Solutions' active focus on this growth area. CFO Ryan Robinson stated that more details on the expense reduction program, with the majority of cost reductions expected in the testing, inspection, and certification businesses, would be provided later.

Josh Chen asked for a triangulation of UL Solutions' business areas that touch data centers and an estimate of the total exposure. He also inquired about the historical source of 'excess costs' enabling the broader expense reduction initiative and what factors are now allowing these costs to be removed.

Answer

CEO Jennifer Scanlon explained that while total exposure isn't quantified, UL Solutions is deeply involved in data center safety challenges, including rapid energy evolution, power infrastructure, AI compute, GPU density, thermal management, and new cooling methods. CFO Ryan Robinson stated that more details on the expense reduction program would be provided later, but anticipated the majority of restructuring expenses and cost reductions would be in the testing, inspection, and certification businesses (Consumer and Industrial).