Total Revenue

+5.6% (from $311.4M to $328.9M)

Total revenue increased by 5.6% YoY driven by strong performance in the Americas which offset weak growth in APAC; the Americas contributed robustly (up 8.8%) against an 18.8% decline in APAC, illustrating that regional strengths helped maintain overall revenue growth despite external market challenges. " " "

Americas Revenue

+8.8% (from $208.1M to $226.4M)

Americas revenue grew by 8.8% YoY due to strong organic sales growth bolstered by favorable price realization and increased equipment sales, reflecting consistent regional demand and a positive product/channel mix that built on previous period momentum. " " "

APAC Revenue

-18.8% (from $22.9M to $18.6M)

APAC revenue declined by 18.8% YoY as difficult market conditions—such as slowing demand, macroeconomic headwinds, and aggressive competitive pricing—continued to pressure the region, similar to the challenges seen in earlier periods. " " "

Operating Income

-69% (from $24.5M to $7.6M)

Operating income plunged by 69% YoY primarily due to a sharp increase in operating expenses—such as ERP modernization and TCS integration costs—combined with deteriorating gross margins influenced by inflationary pressures and freight cost increases, a marked reversal from previous stronger margins. " "

Net Income

-79% (from $31.0M to $6.6M)

Net income fell by 79% YoY as increased ERP modernization costs, transaction and integration expenses, and a higher effective tax rate eroded profitability, overwhelming revenue gains established in the previous period. " "

Selling & Administrative Expense

+21.7% (from $95.7M to $116.4M)

S&A expenses increased by 21.7% YoY driven by ERP-related and integration costs ($3.3M for ERP modernization and $0.7M for acquisition-related expenses) along with higher investments in strategic initiatives and compensation, which further reflected ongoing company investments despite partial offsetting savings in areas like legal fees and warranty claims. " "

Basic EPS

-78% (from $1.67 to $0.36)

Basic EPS dropped by roughly 78% YoY as the significant decline in net income, compounded by higher operational costs and margin pressures, translated directly into lower earnings per share compared to the robust performance in the prior period. " "

Operating Cash Flow

-41% (from $63.8M to $37.5M)

Operating cash flow decreased by 41% YoY largely due to increased working capital requirements arising from the timing of sales and substantial investments in ERP modernization costs (notably $9.4M), which dampened cash flows despite previously efficient conversion of net income into cash. " "

Net Sales

FY 2025

$1.280 billion to $1.305 billion "

$1.210 billion to $1.250 billion "

lowered

Adjusted EPS

FY 2025

$6.15 to $6.55 per diluted share "

$5.70 to $6.20 per diluted share "

lowered

Adjusted EBITDA

FY 2025

$205 million to $215 million "

$196 million to $209 million "

lowered

Adjusted EBITDA Margin

FY 2025

16% to 16.5% "

16.2% to 16.7% "

raised

Capital Expenditures

FY 2025

Approximately $20 million "

Approximately $20 million "

no change

GAAP EPS

FY 2025

no prior guidance

$3.80 to $4.30 per diluted share "

no prior guidance

Adjusted Effective Tax Rate

FY 2025

no prior guidance

Approximately 23% to 27% "

no prior guidance

Order Growth

FY 2025

no prior guidance

5% to 6% order rates in 2025 "

no prior guidance

ERP Modernization Costs

FY 2025

no prior guidance

Approximately $50 million in 2025 "

no prior guidance

Free Cash Flow Conversion

FY 2025

no prior guidance

Targeting 100% conversion of net income to free cash flow on a full‐year basis, excluding ERP modernization costs "

no prior guidance

Gross Margin Expansion & Cost Management

Q1 featured strong margin improvement (up 320 bps, driven by pricing, product mix and productivity). " " Q2 saw a slight decline (30 bps drop due to inflation, offset by price realization and cost‐saving measures). " Q3 noted a 90 bps decrease due to inflation and freight cost pressures, with cost management initiatives (including ERP modernization) emphasized. " " "

In Q4, the company expects gross margin expansion in line with its long-term targets (roughly 30 bps) based on successful cost‐out initiatives and productivity improvements, while also achieving cost savings of about $10 million from restructuring actions. "

Consistent focus on improving margins despite inflation pressures; evolving emphasis from strong initial gains toward offsetting headwinds with cost management.

Autonomous Mobile Robotics & Product Innovation (X4 ROVR/X6 ROVR)

Q1 introduced the X4 ROVR with early positive demand and customer interest. " " Q2 described the initial shipping of X4 orders, increased production capacity, and noted strong market reception alongside early industrial AMR success. " Q3 further emphasized the robust pipeline for the X4 ROVR platform with plans for additional products in 2025, highlighting scalability and strategic partnerships with Brain Corp. " "

In Q4, AMR sales reached $75 million for the year with strong demand driven by the X4 ROVR; notably, the roadmap now includes the upcoming X6 ROVR (shipping in Q2 2025) with enhanced performance, targeting diverse verticals and addressing labor shortages. " " " "

Increasingly bullish with a maturing and expanding product portfolio that signals growing market acceptance and a clear roadmap for future robotics innovations.

Regional Market Challenges (APAC/China and EMEA Sluggish Demand)

Q1 mentioned APAC order timing issues and challenges in EMEA due to a declining macroeconomic environment, but with optimism driven by new product launches and acquisitions. " " Q2 highlighted slowing demand in China and Australia with flat sales in EMEA. " " Q3 detailed significant headwinds in China (overproduction and price pressures) and noted a price war, while some EMEA markets showed modest positive signs. " " " "

Q4 underscored stark demand declines in China (driven by government-induced overproduction) and cautious signals from Australia, while EMEA showed sluggish overall demand but some rebound signals (e.g. double-digit growth in Spain and TCS contributions). " "

Persistent challenges in APAC (accentuated in China) with mixed performance; EMEA remains weak overall but begins to show early signs of recovery.

Inflationary Pressures & Elevated Freight Costs

Q1 acknowledged inflation as higher than expected (offset with pricing and productivity improvements). " Q2 attributed a slight margin decline to higher inflation but noted effective cost-saving measures. " Q3 focused on both inflationary pressure and elevated freight costs contributing to a margin decline, while expecting these issues to be temporary. " "

In Q4, inflationary pressure on materials and elevated freight costs contributed to a 90 bps decrease in adjusted gross margin; however, improved cost management (lower variable compensation and reduced S&A expenses) helped bolster adjusted EBITDA margins. "

Consistently challenging theme; although inflation and freight cost pressures persist, the company’s mitigation efforts have remained steady over time.

Active M&A Strategy & Cross‑Border Acquisitions

Q1 highlighted disciplined execution of M&A with investments in Brain Corp and TCS, emphasizing integration efforts supported by strong cash flow. " " Q2 described an active funnel of over 800 targets, with cross‑border acquisitions (including TCS) and strong financial firepower. " " Q3 reiterated active M&A focus with TCS contributing to significant regional growth and noted refinancing to boost credit capacity. " " " "

In Q4, the company reiterated its active M&A strategy by emphasizing recent investments (in Brain Corp and TCS) as part of its goal to add $150 million of net sales growth over three years, underscoring the significant role of acquisitions in its long‑term strategy. "

Steady and bullish approach to M&A, with consistent execution and increasing emphasis on cross‑border acquisitions as critical growth drivers over time.

Trade Tensions & Tariff Risks with China

Not mentioned in Q1, Q2, or Q3 earnings calls.

Q4 introduced the discussion on trade tensions and tariff risks, detailing that less than 10% of COGS (approx. $50 million exposure) is affected, with strategic measures in place to mitigate tariff impacts. "

Newly emerged risk factor requiring strategic management, adding a fresh layer of concern regarding supply costs.

Backlog Reduction Dynamics

Q1 discussed initial backlog reduction efforts with positive margin and pricing impacts as the mix shifted towards recent orders. " " " " Q2 projected achieving an $80‑100 million reduction with expectations of normalized lead times. " Q3 reported a robust reduction target nearing $130 million, highlighting its impact on future order growth and potential revenue headwinds. " " " "

In Q4, backlog reduction reached $125 million, clearly normalizing lead times but also creating a mathematical headwind for 2025’s organic sales (estimated decline between 1% and 4%). " " " "

Maturing focus on backlog normalization: beneficial for operational efficiency and margins now but posing a near-term revenue challenge.

i‑mop Product Expansion

Q1 introduced the international rollout of the i‑mop family in markets such as Brazil, France, Portugal, and Spain, positioning the product as a key entry into the small space cleaning segment. " " Q3 reiterated these international expansion efforts with incremental growth and prospects for further expansion in 2025. " Q2 did not mention this topic.

In Q4, the i‑mop expansion continued with further international market entries (including Brazil, France, Portugal, and Spain) and announced plans to extend the sales reach to 30 additional countries starting in 2025. "

Consistently positive, though intermittently discussed, with an ongoing bullish expansion narrative across key geographies throughout the year.

Supply Chain Constraints for Robotics Components

Q1 mentioned challenges with long lead times for high‑end sensing components (3D LiDAR and light cameras) used in the X4 ROVR, impacting production scalability. " Q2 and Q3 did not discuss this issue.

In Q4, there was no mention of robotics component supply chain constraints, suggesting the issue may have been addressed or is no longer a significant concern.

No longer a focus—the earlier concerns noted in Q1 appear to have eased or been resolved in subsequent periods.