Mark Argento

Mark Argento asked for clarification on "non-search query revenue," which saw nearly 200% growth, and how Opera plans to leverage this revenue stream going forward.

Answer

CFO Frode Jacobsen explained that non-search query revenue, exceeding $5 million in Q4, arises when Opera addresses user intent through direct references to partners (e.g., in URL experience or Opera AI chat) rather than traditional search queries. He highlighted its excitement due to the rapid expansion of potential dialogues and its native browser integration, offering monetization advantages.

Mark Argento asked for clarification on "non-search query revenue," which saw nearly 200% growth, and how Opera plans to leverage this revenue stream going forward.

Answer

CFO Frode Jacobsen explained that non-search query revenue, exceeding $5 million in Q4, arises when Opera addresses user intent through direct references to partners (e.g., in URL experience or Opera AI chat) rather than traditional search queries. He highlighted its excitement due to the rapid expansion of potential dialogues and its native browser integration, offering monetization advantages.

Mark Argento asked about the seasonality of the e-commerce business against tougher comps, opportunities in other verticals like travel, the LLMs powering Opera Neon, and the strategic value of Opera's installed base in light of industry consolidation talks.

Answer

CFO Frode Jacobsen acknowledged difficult H2 comps but noted guidance remains cautious. Co-CEO Song Lin identified travel and fintech as key growth verticals. He clarified that Neon uses base models from major LLM providers, with Opera's value-add being browser-native integration. He emphasized Opera's position as one of the largest independent browsers with 300 million MAUs, making it a key strategic player in any industry discussions.

Mark Argento asked for specifics on the levers needed to develop the nascent U.S. e-commerce opportunity and questioned whether a slowing U.S. economy could be favorable for Opera's performance-based advertising model.

Answer

Co-CEO Lin Song explained that Opera's strategy is to initially partner with larger, performance-focused e-commerce players who value incrementality. He affirmed that in a volatile economic environment, advertisers prefer Opera's performance-based model because they only pay for measurable results, which makes the business more resilient and attractive.

Mark Argento drilled down on the advertising business, asking about its seasonality, customer concentration in e-commerce, and the primary geographic focus for growth.

Answer

CFO Frode Jacobsen noted that 2025 guidance assumes normalized sequential growth with bigger moves in H2. Co-CEO Lin Song explained that while they work directly with the largest e-commerce players, the customer base is more diversified than search. Jacobsen confirmed Western markets are the fastest-growing region, representing over half of revenue.

Mark Argento questioned the company's AI strategy, focusing on the product roadmap for Opera One R2 and whether Opera is considering a subscription-based AI product similar to competitors like Perplexity.

Answer

Co-CEO Song Lin described AI, particularly the Aria assistant, as a long-term differentiator and noted a significant uptick in usage. Regarding monetization, Lin explained that Opera's current priority is to maximize user accessibility for its AI tools rather than pursuing a subscription model. He emphasized that the company's profitability allows it to focus on user engagement and product integration over short-term revenue generation from AI.

Mark Argento of Lake Street Capital Markets inquired about the scale and potential of the new Hansel relationship, the company's conservative stance on capacity expansion, options for tax optimization, and whether the new 15% capacity is already fully booked.

Answer

Eric Tang, Head of Jordan Operations, detailed two initial orders from Hansel totaling over 3.3 million pieces. CEO Sam Choi added that a major customer's five-year sourcing plan from Jordan will guide Jerash's own expansion strategy. CFO Gilbert Lee explained the high tax rate is due to the company's structure and that experts are being consulted. He also confirmed the new 15% capacity increase is being feathered in and is already included in the 'fully booked through February 2026' status.

Asked for details on the Hansel relationship and its potential scale, questioned the conservative nature of expansion plans, inquired about options for optimizing the tax structure, and sought clarification on whether the new 15% capacity increase is fully booked and how it will be phased in.

Answer

The company detailed two large orders from Hansel, expressing optimism for future collaboration. They explained that expansion plans are being aligned with a major customer's five-year plan and will be detailed later. For taxes, they are consulting experts to optimize their global structure. They confirmed the new capacity is booked and will be phased in gradually as new workers are trained, not as a single step-up.

Asked about the cost implications of switching shipping ports from Haifa to Aqaba, whether recent order shifts were due to cancellations or timing, the reason for dissolving the Busana joint venture, and for details on the new strategic collaboration with Hansel.

Answer

The company clarified that shipping from Aqaba is cheaper for them, though lead times are longer for customers. Order shifts are purely timing-related due to port congestion, with no cancellations. The Busana JV was dissolved due to a lack of progress, and the company can now handle those customers directly. The new Hansel partnership, facilitated by Walmart, is a major opportunity, starting with a $6.5 million order and significant potential for future growth.

Mark Argento inquired about the impact of tariff discussions on new business inquiries, the timeline for new capacity coming online, and the typical conversion rate from a test order to a full production run for new customers.

Answer

CFO Gilbert Kwong-Yiu Lee confirmed that tariff concerns are accelerating the shift of manufacturing to tariff-free countries like Jordan, creating a significant opportunity. He detailed that existing facility expansions will add 10-15% capacity by June 2025, with another 5-10% from the Al-Hasa factory expansion. Regarding conversions, Mr. Lee noted the cycle can take over nine months but the success rate is high. Executive Lin Choi added that bulk orders typically follow trial orders within six months and the company has a strong track record of success.

Mark Argento of Lake Street Capital Markets inquired about the potential revenue from Jerash's current production capacity, the specifics of planned capacity expansion, and the impact of U.S. political shifts on tariffs and sourcing from China.

Answer

CFO Gilbert Kwong-Yiu Lee explained that revenue capacity is between $155 million and $160 million, with piece value varying by order type (FOB vs. CM). He detailed a multi-stage expansion plan, starting with a warehouse on existing land, noting it could take over a year to build a full production facility. Executive Director Eric Tang added that internal renovations have already boosted capacity by 7-8%. Regarding tariffs, Gilbert Kwong-Yiu Lee stated that increased tariffs on China would be a net positive, accelerating customer diversification, a trend confirmed by CEO Lin Choi, who noted trial orders from five new customers.

Mark Argento of Lake Street Capital Markets inquired about the new CEO's background and key priorities for the next 3-6 months. He also asked about the strategic use of AI, the value proposition for the planned 2026 price increase, and the go-to-market strategy for the Ignaton subsidiary, including potential partnerships.

Answer

President & CEO Kiersten Medvedich outlined her background in content and her focus on early tenure engagement, AI, and community. She confirmed AI will be used for both member learnings and a direct AI companion. CFO Ned Preston stated the March 2026 price increase will be supported by the AI solution and new content. Executive Chairman Jirka Rysavy described Ignaton's successful soft launch and plans for a larger launch after Labor Day, adding that licensing deals are a future possibility but not for the current year.

Mark Argento of Lake Street Capital Markets inquired about the new CEO's background and key priorities for the next 3-6 months, the company's strategy for implementing AI, the value proposition for the planned Q1 2026 price increase, and the go-to-market plan for the Ignaton subsidiary, including potential partnership deals.

Answer

President & CEO Kiersten Medvedich outlined her content background and focus on early tenure engagement, product improvements, and investments in AI and community. CFO Ned Preston confirmed the March 2026 price increase would coincide with added value from AI solutions and new content. Executive Chairman Jirka Rysavy described Ignaton's successful soft launch at a biohacking conference and plans for a larger launch after Labor Day, adding that licensing deals are a future possibility but not for the current year.

Mark Argento from Lake Street Capital Markets asked for details on Gaia's AI strategy, including its product implementation, potential content licensing deals with hyperscalers, and the development status of the Community platform. He also inquired about James Colquhoun's future involvement with investors.

Answer

CEO James Colquhoun described the AI product as an interactive, conversational feature integrated into the existing platform to deepen member engagement. He clarified that while no content licensing deals with hyperscalers are currently in place, exploring such opportunities is a key part of his new mandate. On the Community platform, Colquhoun noted an alpha test is planned for later this year, with Executive Chairman Jirka Rysavy adding a full launch is targeted for the end of Q1 2026. Colquhoun also affirmed his commitment to supporting investor relations.

Mark Argento asked for clarification on the 2025 revenue growth guidance, questioning if the expected acceleration was on an annual or sequential basis. He also inquired about Gaia's AI strategy, specifically whether the company is building its own large language model or leveraging existing technology.

Answer

CFO Ned Preston clarified that the guidance for revenue growth to accelerate beyond 12% is on an annual basis for 2025, while also expecting sequential growth from Q4. Executive James Colquhoun described the AI initiative as a 'rapid play' integrating multiple LLMs to allow users to have conversations with Gaia's content library. He noted this feature would roll out in Q1 2026 alongside a price increase. Executive Jirka Rysavy added the planned price increase would be $2.

Mark Argento asked about the impact of the recent price increase on subscriber churn, the timeline for migrating the entire member base to the new pricing, and the company's expectations for the Gaia Marketplace and premium tier growth.

Answer

James Colquhoun (executive) detailed the price increase rollout, noting a successful UK pilot and encouraging early results for direct members, though churn was slightly higher on third-party platforms. Ned Preston (CFO) and Jirka Rysavy (executive) clarified that about 60% of members would be on the new pricing by year-end, with the remainder, mostly annual subscribers, transitioning over the following year. James Colquhoun added that the Marketplace is expected to be P&L positive by mid-2025 and that the premium Gaia Plus tier is growing 3-4 times faster than the overall member base, signaling a strategic focus on ARPU growth.

Inquired about the sustainability of the $2 million quarterly operating income as a baseline, the potential for growth, asset flows and pricing in the financial assets division, and the impact of tariffs on the demand for used equipment.

Answer

Management stated that the $2 million operating income is a reasonable expectation but not an automatic baseline, requiring significant effort. Growth is expected from organic performance, large one-time deals (which are not in the baseline), and M&A. In financial assets, growth is coming from onboarding new sellers like regional banks and alternative lenders, indicating market share gains. Tariffs are creating concern and time-sensitivity, which drives up demand and pricing for late-model used equipment that is immediately available.

Mark Argento from Lake Street Capital Markets asked about using $2 million in quarterly operating income as a reliable baseline, the drivers for future growth, asset flow and pricing normalization in the financial assets division, and the impact of tariffs on demand for used industrial equipment.

Answer

CEO Ross Dove explained that while $2 million is a reasonable expectation, it is not an automatic baseline and the goal is to consistently exceed it through organic growth and M&A. He noted that growth in the financial assets division (NLEX) is driven by gaining market share with new sellers. Regarding tariffs, he stated there is growing concern, which drives aggressive bidding and premium prices for late-model used equipment as companies seek to avoid supply chain timing issues.

Mark Argento inquired about the Financial Assets business, asking for details on asset types, trends, and growth expectations, and also questioned the current balance of the company's loan book and nonaccrual assets.

Answer

Executive Ross Dove explained that after a slow start, a market shift in mid-February drove a strong finish to the quarter for financial assets, with a positive outlook for continued volume growth driven by record consumer debt. Executive Brian Cobb provided specifics on the loan book, noting a gross balance of approximately $29 million and a consistent balance for the nonaccrual lending partner, with cash flows expected to improve over time.

Mark Argento inquired about the loan book, asking if provisions were increased and how that related to the tax asset valuation allowance. He also questioned the favorability of the macro environment for the Financial Assets business and what is needed to drive material growth in that segment, given the recent performance. Finally, he asked about the company's exposure to state and federal cost-cutting initiatives like DOGE within the Industrial Assets business.

Answer

CFO Brian Cobb explained that the loan reserve has held steady since the borrower went into default in Q2, and the tax valuation allowance adjustment was primarily due to a lower 2025 forecast related to the nonaccrual loan status. CEO Ross Dove addressed the business segments, stating that the rise in consumer defaults is a leading indicator for future charge-off volume, making him bullish on the Financial Assets business over the next 1-2 years. For the Industrial segment, he acknowledged frustrating project delays in late 2024 but noted that heightened layoffs and plant closures are now creating a very strong pipeline for 2025.

Mark Argento from Lake Street Capital Markets asked for clarification on the organic versus acquisition-driven EBITDA contribution in the quarter. He also questioned how the company navigates tariff impacts based on past experience, the current M&A environment, and whether there were any stock buybacks during the period.

Answer

Executive Bohn Crain clarified that on a same-store basis, performance was relatively flat, with the quarterly outperformance lifted by project opportunities. He noted that agency conversions boost EBITDA without impacting revenue, and the TCB acquisition had minimal impact as it closed late in the quarter. Regarding tariffs, Crain stated that while they cause short-term disruption, underlying trade flows persist. He described the M&A environment as favorable, driven by aging agent partners and competitors' balance sheet issues, reaffirming Radiant's disciplined approach. CFO Todd Macomber added that there were no stock buybacks as the company was focused on completing acquisitions.

Mark Argento of Lake Street Capital Markets inquired about the current M&A environment, the factors driving recent tuck-in acquisitions, and requested a refresher on the company's typical deal structure.

Answer

Executive Bohn Crain stated that acquisition activity is accelerating due to two main factors: an increasing number of aging agency partners seeking retirement exits and a general M&A market valuation that has become more favorable to Radiant's disciplined approach. He emphasized the company's strong, unlevered balance sheet as a key advantage. Crain reiterated that their deal structure almost exclusively uses earn-outs, ensuring sellers remain invested in the business's post-acquisition performance, which mitigates risk for Radiant.

Mark Argento of Lake Street Capital Markets asked about the procedural steps following shareholder approval of the MINOSA transaction, the current loan amount from MINOSA, the status of the environmental permitting in Mexico, and the impact of recent UK elections on the Victory project.

Answer

CEO Mark Gordon explained that after shareholder approval, the investor has up to 60 days for due diligence before the initial closing. CFO Philip Devine confirmed MINOSA has provided $11 million in loans to date. Regarding the Don Diego project, Mark Gordon detailed the submission of additional information to SEMARNAT with a decision expected by late June. For the Victory project, he noted the reappointment of the UK Defense Secretary was a positive development, as he is already familiar with the project.