Kevin

Kevin inquired whether the low to mid-single digit revenue growth guidance for Optune Gio indicates a conservative outlook or a change in the long-term market growth rate for this product.

Answer

CEO Frank Leonard clarified that the guidance does not signal conservatism or moderation. He reiterated the belief that many patients can still benefit from Optune Gio and that the range reflects the company's ability to achieve mid-single digit growth while accounting for various revenue assumptions.

Kevin, on behalf of Vijay Kumar, questioned whether the low to mid-single-digit revenue growth guidance for Optune Gio reflected conservatism or a change in the long-term market growth rate, which is typically seen as mid-single digits.

Answer

CEO Frank Leonard clarified that the guidance does not signal conservatism or moderation, but rather reiterates the belief that many glioblastoma patients can still benefit from Optune Gio, aiming for growth in the mid-single-digit range while accounting for various revenue assumptions.

Kevin inquired about the accelerated destocking of North America large ag used inventory (4% over the quarter), asking if higher pool funds or other incentives were used and if this pace of destock is sustainable.

Answer

Director of Investor Relations Josh Beal confirmed significant progress in Q1, particularly for late-model tractors (2022 and 2023 8Rs down 20% sequentially). He stated that Pool Funds contributions would continue to support the channel, as they did in 2025, but North America still saw positive price. Beal noted that Q1 is typically the strongest quarter for used reduction due to year-end buying, but consistent progression is expected.

Kevin from Alliance Global Partners inquired about the initial feedback received from trials of the newly launched Echoscope Type Nano Gen series and asked for an update on the DAVD-related revenue target, noting a reduction from $4.5 million to $3.5-$4 million since the March conference call.

Answer

Annmarie Gayle, Chair and CEO, and Blair Cunningham, President of Technology, explained that customers were highly impressed by the Nano Gen series' significant reduction in size and weight, which opens new integration opportunities, such as the DCEND diving suit. Regarding DAVD revenue, Ms. Gayle confirmed the company is targeting $4 million for the fiscal year, a substantial increase from $1.2 million in the previous year, expressing satisfaction with this progress.

Kevin asked about the feedback received from trials of the newly launched Echoscope Type Nano Gen series and sought clarification on the revised DAVD-related revenue target for the fiscal year.

Answer

Blair Cunningham, President of Technology, highlighted the significant reduction in the Nano Gen series' form factor, size, and weight as a key positive feedback, enabling new integration opportunities. Annmarie Gayle, Chair and CEO, confirmed the company is targeting $4 million in DAVD revenue for the fiscal year, a substantial increase from $1.2 million in the previous year, expressing satisfaction with the progress.