Logan W Lillehaug

Logan Lillehaug asked if hyperscalers are increasingly requiring line of sight to gigawatt-scale power for new sites. He also inquired about the power and expansion capabilities at the two new sites under negotiation and whether lease economics for Harwood (Polaris Forge 2) would be similar to Ellendale.

Answer

Wes Cummins, Chairman and CEO, confirmed that hyperscalers generally seek sites that can scale to a gigawatt, with initial needs around 200 megawatts, and that new sites also offer expansion capability. He stated that lease economics for Harwood should yield a similar economic return (spread between cost of capital and revenue) as Ellendale, even if headline economics differ due to investment-grade tenants.

Logan Lillehaug asked if hyperscalers now require a line of sight to 1 GW for new sites like Harwood, and if other new sites also offer similar expansion capabilities. He also inquired if the lease economics for Harwood would be similar to Ellendale, considering a potentially different end customer.

Answer

CEO Wes Cummins confirmed that the general demand from hyperscalers is for initial 200 MW capacity with scalability to 1 GW, and new sites typically offer this expansion capability, with some discussions even for 10x larger sites. He stated that the focus for lease economics is on the 'spread' between cost of capital and tenant revenue, expecting similar economic returns regardless of the specific hyperscaler.

Logan Lillehaug, on for George Sutton, asked for more detail on the strategic shift toward Earned Wage Access (EWA) and questioned what factors enabled the competitive takeaway of the Credit Sesame partnership.

Answer

CRO & Interim President Chris Ruppel explained the EWA strategy involves shifting from a territory-based payroll card sales model to a direct sales force focused on EWA, supported by new marketing efforts. For the Credit Sesame win, Mr. Ruppel credited the robustness of the ARC platform and its ability to tailor solutions. Chairman & Interim CEO William Jacobs added that the company's ability to onboard seven new partners in 2025, versus one in each of the prior two years, demonstrates the organization's enhanced competitive strength.

Logan Lillehaug from Craig-Hallum Capital Group LLC asked for details on the strategic shift toward Earned Wage Access (EWA) and the factors that led to winning the Credit Sesame partnership as a competitive takeaway.

Answer

Chief Revenue Officer Chris Ruppel explained the EWA strategy involves a dedicated direct sales force and new marketing motions, shifting from the prior territory-based model. He attributed the Credit Sesame win to the ARC platform's robust features and ability to tailor solutions. Interim CEO William Jacobs highlighted that onboarding seven partners in 2025, versus one in each of the prior two years, shows the organization's enhanced competitive strength.

Logan W Lillehaug from Craig-Hallum asked if prospective BaaS customers are showing more caution and if Green Dot's compliance investments are now a competitive advantage. He also requested specifics on planned investments for the GO2bank platform.

Answer

CEO George Gresham confirmed that prospective BaaS partners are conducting heightened diligence on compliance, which he views as a positive. He stated that Green Dot's culture and capabilities in this area are a key differentiator that attracts high-quality partners. Regarding GO2bank, Gresham said the immediate priority is a significant user experience upgrade in the first half of 2025. He added that longer-term plans for late 2025 and 2026 include adding marketplace-like capabilities through third-party providers.

Asked for more details on the new sellers in the NLEX market, the status of acquisition opportunities in Europe, and for an update on the specialty lending situation with the large borrower and legal collections.

Answer

Management explained that new sellers on the NLEX platform are broad-based, including regional banks facing regulatory pressure and newer alternative lending companies that have grown large enough to need NPL services. They confirmed that European expansion is an active and ongoing strategy. Regarding the specialty loan, they are making steady progress in positioning the collateral for long-term collection and pursuing legal initiatives, but there are no major developments to disclose at this time.

Logan Lillehaug, on behalf of Craig-Hallum, inquired about the types of new sellers coming to the NLEX marketplace, the status of potential acquisition opportunities in Europe, and for an update on traction with legal collections for the company's large specialty loan.

Answer

CEO Ross Dove described the new NLEX sellers as a broad-based mix of regional banks and newer alternative lenders like fintech companies. He confirmed that European expansion remains an active, ongoing strategy. CFO Brian Cobb addressed the specialty loan, stating that while significant work is progressing to maximize collateral value and pursue legal initiatives, there were no major developments to disclose at this time.

Logan Lillehaug from Craig-Hallum Capital Group inquired about Agilysys's AI product roadmap for the next year and how the company expects AI to serve as a competitive differentiator.

Answer

CEO Ramesh Srinivasan explained that the company's prior investments in modernizing its products and creating an integrated ecosystem have positioned it well to effectively infuse AI. He detailed several AI-driven enhancements being added to products, such as intelligent upselling, voice recognition for ordering, and natural language processing for data analysis. Srinivasan emphasized that these AI features are enhancing an already strong product set and widening the company's competitive advantage, which will be difficult for competitors to replicate.

Logan W Lillehaug, on for George Sutton, asked for an update on the fintech partnership pipeline, opportunities for market share gains, and the expected cadence of net interest margin (NIM) expansion through 2025.

Answer

Executive Nicole Lorch described the fintech pipeline as strong, with a focus on mature programs and expanding existing relationships rather than rapidly increasing the number of partners. Executive David Becker highlighted that fintech revenue was $1.1 million in Q1 and is on track to "blow through" the $4 million annual forecast. Regarding NIM, Kenneth Lovik and David Becker expect a significant benefit in Q2, driven by holding SBA loans longer and the full-quarter impact of paying off high-cost brokered deposits at the end of Q1.

Logan W Lillehaug of Craig-Hallum Capital Group LLC inquired about the most successful early use cases for WisdomTree Prime and the significance of the expanded portfolio consultation services for the adviser strategy.

Answer

Executive William Peck highlighted tokenized government money market funds as the key use case for Prime and Connect, enabling yield and spending capabilities. Executive Robert Lilien explained that portfolio consultations are a major tool to penetrate the adviser market, driving deeper engagement and helping to achieve the firm's model user (25-30%) and asset (35-40%) growth targets for 2025.

Logan Lillehaug asked when the partnership with Liquid Intelligent Technologies might impact financials and if Globalstar plans to replicate this value-added reseller strategy.

Answer

CEO Paul Jacobs explained that they are in the proof-of-concept stage with Liquid to train their team and expect to see opportunities "reasonably soon." He confirmed that using value-added resellers is a core strategy, similar to their satellite business, to leverage partners' deep vertical expertise in various markets without having to build it all internally.

Logan W Lillehaug, on for George Sutton of Craig-Hallum, asked about the growth drivers for the Identity segment, specifically questioning the mix between expansion with existing customers versus the need for new customers to reach the $80M-$85M revenue target.

Answer

CEO Ed West responded that growth will come from a combination of both expanding existing relationships and acquiring new customers, with no specific target for the mix. CFO David Lyle emphasized that the opportunity for expansion revenue is 'pretty large' and is a significant component of the growth expected in fiscal 2025.