[Management View]
Emerald Holding reported robust year-to-date revenue and adjusted EBITDA growth, driven by acquisitions and margin discipline. Q3 organic revenue contracted due to specific event-driven challenges, primarily construction at the Las Vegas Convention Center and tariff headwinds. The company remains focused on portfolio diversification into higher-growth sectors, as evidenced by the Generis acquisition and a strong M&A pipeline. Expanded AI deployment and a centralized commercial platform are core elements to scaling efficiency and enhancing customer and exhibitor experiences.

[Outlook]
Emerald raised its 2025 revenue guidance to $460 million–$465 million and adjusted EBITDA to $122.5 million–$127.5 million, reflecting the Generis acquisition and year-to-date performance. The company anticipates a significant revenue impact from Generis in 2026. International exhibitor growth is supported by a doubling of active international sales agents, broadening the company’s reach.

[Financial Performance]
- Total Revenue: $77.5 million in Q3, up from $72.6 million YoY.
- Organic Revenue: Decreased 6.8% due to construction and tariff headwinds.
- Year-to-Date Total Revenue: $330.7 million, a 13.3% increase.
- Adjusted EBITDA: $12.8 million in Q3, a 2.4% increase.
- Year-to-Date Adjusted EBITDA: $90.8 million, up 32.4%.
- SG&A Expenses: $51.3 million for Q3 and $152.5 million year-to-date.
- Cash Position: $95.4 million as of September 30.
- Net Debt-to-Covenant EBITDA: 2.96x as of September 30.
- Share Repurchase Activity: 116,000 shares bought in Q3 at $4.87 per share.
- Quarterly Dividend: Declared at $0.015 per share.

[Q&A Highlights]
Question 1: Did the $6 million impact you mentioned include both tariffs and construction in Las Vegas?
Answer: Yes, it includes both. The construction at the Las Vegas Convention Center was the dominant factor, with tariffs being a lesser issue. The construction is expected to be completed by the end of this year, improving customer experience next year.

Question 2: How has the unusual trade environment impacted your international attendance and tariffs?
Answer: The impact of tariffs was factored into our 2025 plans, affecting markets like China and Canada. However, our international sales team has driven business from other markets, making the net effect manageable. We hope for a more normal trade environment next year.

Question 3: Would you have reiterated your former guidance without the Generis acquisition?
Answer: Yes, we would be within the guidance range, with revenue in the lower half and EBITDA in the mid to upper range. Generis will contribute more significantly next year.

Question 4: How much revenue from 2025 acquisitions was not recognized due to timing?
Answer: For Generis, about $10 million of revenue will be recognized next year. Other acquisitions had minimal pre-close revenue impact.

Question 5: Can you quantify the impact of Las Vegas construction on your financial results?
Answer: It's difficult to be precise, but the construction had a significant impact on customer experience and ROI, leading to a few million dollars in revenue decline.

Question 6: Can you explain the AI-powered event agent?
Answer: The AI-powered tool simplifies the customer journey by providing answers to exhibitors and visitors, reducing the need to navigate complex manuals and improving overall satisfaction.

Question 7: Any update on your platform strategy for scale and savings?
Answer: We are progressing well, sharing best practices and managing SG&A efficiently. Acquisitions have been integrated, driving cost and efficiency benefits.

Question 8: Comments on the M&A environment and valuations?
Answer: Valuations remain stable, and the pipeline is strong. We are actively exploring opportunities to grow through M&A, focusing on portfolio optimization and high-growth sectors.

Question 9: Update on commerce and content segments?
Answer: The content segment is shifting to a lead generation model, showing good progress. The commerce segment has moved from unprofitable to break-even and is now contributing to EBITDA.

[Sentiment Analysis]
The tone of the management was confident and optimistic, focusing on strategic growth and operational efficiency. Analysts' questions were detailed and focused on understanding the impact of specific challenges and future growth prospects.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|-------------------------|---------------|---------------|-------------|
| Total Revenue | $77.5 million | $72.6 million | +6.7% |
| Organic Revenue | -6.8% | N/A | N/A |
| Adjusted EBITDA | $12.8 million | $12.5 million | +2.4% |
| SG&A Expenses | $51.3 million | $40.8 million | +25.7% |
| Cash Position | $95.4 million | N/A | N/A |
| Net Debt-to-EBITDA | 2.96x | N/A | N/A |

[Risks and Concerns]
- Ongoing construction at the Las Vegas Convention Center impacting event performance.
- Tariff headwinds affecting specific markets.
- Higher SG&A expenses driven by acquisitions and transaction-related costs.
- Negative free cash flow due to vendor payment timing and acquisition-related accounting effects.

[Final Takeaway]
Emerald Holding demonstrated strong year-to-date performance, driven by strategic acquisitions and disciplined cost management. While Q3 faced challenges from construction and tariffs, the company remains focused on portfolio diversification and operational efficiency. The raised guidance and positive outlook for 2026, supported by the Generis acquisition and international expansion, reflect confidence in sustained growth and shareholder value creation.