Dave Papadogonas

Jerry said no competitive change in commercial. Started year with ~80 more commercial account managers than prior year Q1. Strong wins in both local and national accounts across key verticals. New commercial sales hires take longer to pay off but drive organic recurring growth throughout the year.

Ken said ex-leases leverage is 0.6-0.7x with significant capacity. Will remain disciplined and balanced while continuing growth-oriented capital allocation.

Jerry highlighted intense focus on commercial with aligned marketing and sales leadership. Ken confirmed no tariff impact on materials; fleet deleverage was from lapping prior-year vehicle gains.

Ken couldn't give precise numbers but said confident in 2025 fleet position; can keep trucks longer if needed. Jerry noted exploring lighter-duty vehicles as cost offset.

Ken said business is more diversified today with stronger defense; termite/ancillary demand remains strong. Acceptance Corp financing gives sales teams another tool.

Maria said Pequity brings above-and-beyond compensation management capabilities into their portfolio. Peter noted it's a small company with no material financial impact this fiscal year, already contemplated in reaffirmed outlook.

Maria confirmed no pushback from international clients, citing ADP's local presence across 140 countries and long-standing relationships with multinational clients.

Peter confirmed real productivity improvements with operational headcount reductions in downmarket and mid-market despite growing client counts, but still in net investment position in tens of millions. Expects to continue through fiscal year.

Don provided directional color: ~0.5% revenue contribution, ~0.5pt EBIT margin pressure, >1% EPS drag from integration/amortization/interest. Specific revenue and margin profile not disclosed.

Josh Isner attributed win-backs to fundamentals (battery life, workflows) plus value-added AI features, with network effects reinforcing peer referrals.

CSO said it starts with basic airspace awareness, then builds to jamming and nets as regulations evolve. Customers can locate drone pilots. Counter-drone is a new and growing segment.

Rick challenged the premise, enterprise security departments (mostly ex-law enforcement) are actually very collaborative, sharing freely through partners like Auror to track organized retail crime. Medical sector similarly collaborative. Josh added it's incumbent on Axon to build the ROI business case for each customer, but the market is so much bigger that the opportunity doesn't slow down.

Direct sale improved sequentially. Strategic for cross-selling into rental, facility, first aid, and fire. No buybacks in Q3 but balance sheet well positioned.

Direct Sale was down 9.2% but described as lumpy and strategic. Company cross-sells rental, facility services, Fire, and First Aid into same customers.

Lansing stated auto and card scoring show no meaningful competitive change, with no new innovation from competitors.

Lansing reaffirmed buyback-focused capital return strategy with leverage targeting 2-3x, calling the stock a screaming value even at PE north of 100.

Elizabeth Mann identified forms/rules/loss costs and anti-fraud as primarily contributory, with other businesses having proprietary data. Lee addressed vibe coding, arguing software is a data delivery vehicle not threatened by AI code generation.

Elizabeth Mann declined to forecast buyback amounts, reiterating the capital allocation framework: organic investment first, M&A exploration, dividend commitment, then buybacks with remaining capacity.