Operator

Hello, everyone. Thank you for joining us, and welcome to CapsoVision’s Second Quarter 2026 Earnings Conference Call. [Operator Instructions]

I will now hand the conference over to Leigh Salvo, Investor Relations. Please go ahead.

Leigh Salvo

Thank you, operator. Good afternoon, everyone, and thank you for joining us for CapsoVision’s Second Quarter 2026 Earnings Call. Joining me today are Johnny Wang, President and Chief Executive Officer; and Senior Vice President of Finance, David Garcia; as well as Doug Atkinson, Senior Vice President of Sales.

Before we begin, please remember that today’s remarks include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent Form 10-Q filed by us with the SEC. These forward-looking statements speak only as of the date of this call, and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Our call today will cover the following agenda. Johnny will begin with an update on CapsoVision’s business, target markets and recent highlights from our pipeline development. Then Dave will walk through a commercial update and recent financial results. After our prepared remarks, we’ll open the call for Johnny, David and

Young people have said a lack of career opportunities are forcing them to think about leaving home.

In a survey by Dr Nicola Brink – Guernsey’s Medical Officer of Health and Director of Public Health – housing, cost of living and transport were big headaches for the future.

Only 27% of the young people Brink heard from said they were confident in staying on the island.

Amber Thomson told BBC Guernsey: “I think that a lot of people kind of tend to go to uni[versity] and then they think, well there’s not that much opportunity for me if I come back.”

The 21-year-old studied environmental science and said she planned to move away for more career opportunities and to “see what else is out there in the world”.

She said: “Guernsey is a really, really tiny place and when you start to look at the world as a whole you realise just how small it is and how little you have seen in life.”

She valued the safety of island life but added: “I think that there’s a real gap between the young people of Guernsey and then the older generations.

“I think that it’s a real shame that we don’t have any sense of community between the two groups at all” and said it would be good to bridge that gap.

Mortgage rates fell for the first time in six weeks, mortgage buyer Freddie Mac said Thursday.

Freddie Mac’s latest Primary Mortgage Market Survey, released Thursday, showed the average rate on the benchmark 30-year fixed mortgage fell to 6.67% from last week’s reading of 6.69%. 

The average rate on a 30-year loan was 6.58% a year ago.

SLOWING LABOR MARKET CREATES NEW HURDLE FOR FIRST-TIME HOMEBUYERS FACING AFFORDABILITY SQUEEZE

The average rate on the 30-year fixed mortgage fell to 6.67% this week. (Getty Images)

“Housing affordability has improved from a year ago, and recent increases in purchase and refinance applications suggest that borrowers continue to respond to even modest changes in mortgage rates,” said Sam Khater, Freddie Mac’s chief economist.

A TALE OF TWO HOUSING MARKETS: LUXURY DEMAND SURGES AS AFFORDABILITY SQUEEZES STARTER-HOME BUYERS

The average rate on a 15-year fixed mortgage fell to 5.96% from last week’s reading of 6.01%.

Mortgage rates are affected by several factors, including the Federal Reserve and geopolitics. Though mortgage rates are not directly affected by the Fed’s interest rate decisions, they closely track the 10-year Treasury yield. The 10-year yield hovered around 4.64% as of Thursday afternoon.

THESE AMERICAN CITIES ARE TRENDING TOWARD A BUYER’S MARKET

“The 10-year Treasury yield increased only slightly this week as the conflict in Iran has drawn on, putting pressure on oil prices and thereby expectations of future inflation,” said Realtor.com senior economist Joel Berner. “Yesterday’s CPI print came in right in line with expectations, having little impact on the markets. While it’s certainly good news that inflation did not surprise us by coming in hotter than expected, a cooler readout could have given the Federal Reserve more pause on what looks like an upcoming rate hike before the end of 2026 after holding rates late last month.”

The average rate on a 15-year fixed mortgage fell to 5.96%. (Joe Lamberti/Bloomberg via Getty Images)

GET FOX BUSINESS ON THE GO BY CLICKING HERE

The current conflict in the Middle East has also affected borrowing rates.

“All told, there is little downward pressure on mortgage rates between a Middle East conflict that’s keeping inflation high and a Federal Reserve that’s laser-focused on driving that inflation lower,” Berner said. “Current mortgage rate levels may become quite familiar in the months ahead.”

Company Participants

Charles Beck – Executive VP, CFO, Secretary & Treasurer
Paul Carreiro – CEO, President & Director

Conference Call Participants

Joshua Reilly – Needham & Company, LLC, Research Division
Vijay Homan – Craig-Hallum Capital Group LLC, Research Division
Jeffrey Milton Bernstein – Silverberg Bernstein Capital Management LLC

Presentation

The Magnum Ice Cream Company is voluntarily recalling all lots of certain Reese’s and Almond Joy ice cream bars after an internal review found inaccurate nutritional information on the products’ cartons.

The Class III recall covers Reese’s Crunchy Peanut Ice Cream Bars and Almond Joy Ice Cream Bars and extends to the retail store level, according to a recall notice posted by SpartanNash.

The Food and Drug Administration defines a Class III recall as a situation in which use of or exposure to a product “is not likely to cause adverse health consequences.”

WHOLE FOODS RECALLS SALSA, GUACAMOLE AND PREPARED FOODS IN 12 STATES OVER SALMONELLA CONCERNS

Reese’s products are displayed at a store. The Magnum Ice Cream Company is recalling certain Reese’s and Almond Joy branded ice cream bars over inaccurate nutritional information on the packaging. ( Jakub Porzycki/NurPhoto via Getty Images / Getty Images)

The company said certain nutritional information was inaccurately declared on the nutrition panel. However, the ingredients and allergen information listed on the packaging are correct, according to the recall notice.

The Reese’s Crunchy Peanut Ice Cream Bars can be identified by UPC 8-40473-40024-5 and are sold in six-count packages. The Almond Joy Ice Cream Bars carry UPC 8-40473-40029-0.

All lot codes of the affected products are included in the recall.

TOYOTA RECALLS 655K CAMRYS GLOBALLY OVER DISPLAY DEFECT THAT CAN KNOCK OUT SAFETY INDICATORS

Almond Joy candy bars are pictured. The Magnum Ice Cream Company is recalling Almond Joy Ice Cream Bars and Reese’s Crunchy Peanut Ice Cream Bars because of inaccurate nutritional information on the products’ cartons. (Julia Ewan/The Washington Post via Getty Images / Getty Images)

The recall notice did not specify which nutritional information was inaccurate. Consumers who rely on the nutrition panel to monitor their dietary intake should therefore be aware that some of the information printed on the affected cartons may not be accurate.

FOX Business reached out to The Magnum Ice Cream Company for additional information about which nutritional values were incorrectly listed, how many products are affected, where they were distributed and whether the company has received any consumer complaints or reports of adverse health effects.

FOX Business also contacted the FDA for additional information about the Class III recall and any reported adverse health consequences, as well as SpartanNash for details about the affected products’ retail distribution. Responses were not immediately received.

CLICK HERE TO GET FOX BUSINESS ON THE GO

SpartanNash instructed customers who may have purchased the recalled ice cream bars not to consume them and instead return the products to the store for a refund or replacement.

Consumers with questions or concerns about the recall can contact The Magnum Ice Cream Company at 1-800-634-7532. SpartanNash customers can contact the retailer’s customer service center at 1-800-451-8500.

Meta is partnering with North America’s Building Trades Unions (NABTU) to expand the pipeline of skilled workers needed to build and maintain America’s rapidly growing AI infrastructure.

The partnership, announced Wednesday, will give Meta access to NABTU’s network of apprenticeship and training programs while helping connect skilled trades workers with Meta projects across the U.S.

“The Meta partnership with North America’s Building Trades Unions means avenues of communication are open, access to our recruitment and training pipeline of skilled craft will become available and we’ll be able to deploy craft on an as-needed basis to Meta projects anywhere across America,” Sean McGarvey, president of NABTU, told FOX Business.

NEW MEXICO COURT ORDERS META TO PAY $567M, OVERHAUL TEEN PROTECTIONS ON FACEBOOK AND INSTAGRAM

The partnership will give Meta access to NABTU’s network of apprenticeship and training programs. (David Paul Morris/Bloomberg via Getty Images)

Demand for skilled trades workers has grown rapidly as tech companies invest in data centers and other infrastructure needed to power AI.

McGarvey said the demand is being felt across a range of trades, including HVAC technicians, laborers, operating engineers and others.

NABTU represents more than 3.2 million skilled craft professionals in the U.S. and Canada through an alliance of 14 national and international unions. 

Its unions and contractor partners operate more than 1,900 apprenticeship and training facilities across North America and invest more than $3 billion annually in training and education, according to the announcement from Meta.

ZUCKERBERG LAYS OUT VISION TO PUT SUPERINTELLIGENT AI IN EVERYONE’S HANDS

McGarvey said the demand for skilled trades workers is being felt across a range of trades. (Daniel Heuer/Bloomberg via Getty Images)

NABTU has roughly 300,000 people enrolled in its registered apprenticeship system, according to McGarvey, who added that number could grow significantly.

“We currently have that 300,000, and we can ramp that up to a million, based on demand,” he said.

Meta President Dina Powell McCormick said skilled trades workers will be critical to building the infrastructure needed for the U.S. to compete in AI.

“We are so proud to work with NABTU on this partnership,” Powell McCormick said in a statement. “I have had the privilege of working with President McGarvey since I took on this new role, and we are excited to work together on skilled trades.

“This is an important moment, and these men and women of the skilled trades are building the American infrastructure needed to ensure America’s values lead the AI race globally.”

META, OTHER COMPANIES MUST FACE THOUSANDS OF LAWSUITS OVER CHILD SOCIAL MEDIA ADDICTION, APPEALS COURT RULES

A high-tech data center is pictured here. Demand for skilled trades workers is growing as the country’s AI infrastructure buildout expands. (iStock)

The agreement comes as Meta expands its investment in U.S. infrastructure and workforce development.

The tech company said the partnership builds on its Future Is For Everyone Fund, which is aimed at investing in communities, including teachers, first responders and energy and water infrastructure.

McGarvey said the jobs created by the AI boom could last well beyond the initial construction of data centers because the facilities will need regular upgrades.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

“The need for skilled craft on a constant basis in these digital facilities is ongoing long after initial construction is complete,” he said.

The group, which also owns Sports Direct and Flannels, has acquired most of the chain’s stores from FTI Consulting securing more than 1,000 jobs

Mike Ashley’s Frasers Group has purchased Harvey Nichols, rescuing the embattled luxury department store from the brink of insolvency.

The group, which also owns Sports Direct and Flannels, has snapped up each of the chain’s stores, excluding the Dublin location, from FTI Consulting through a pre-pack administration process.

Frasers’ takeover of Harvey Nichols represents the latest move in its drive into luxury fashion, as it seeks to expand beyond its origins in cut-price sportswear.

The firm, founded by billionaire Mike Ashley, has seen off rivals including FTSE 100 retail giant Next, which had also been involved in the bidding process.

The deal will safeguard the jobs of more than 1,000 members of staff, though Harvey Nichols employs around 1,200 in total, suggesting a number of redundancies will follow. Frasers will also acquire the group’s online operation and existing stock, as reported by City AM.

Frasers stated it will need to commit to “significant restructuring” of the department store group, which has recorded five successive years of losses after buckling under fierce competition from rivals Harrods and Selfridges. In the UK, Harvey Nichols has stores in London, Bristol, Manchester, Birmingham, Leeds and Edinburgh.

Prior to the deal, Ashley warned that Harvey Nichols – which had risen to prominence through its association with the 1990s sitcom Absolutely Fabulous – had fallen into a “death spiral”. He told the Financial Times that he anticipated the department store chain would be sold for less than £40m.

“I don’t think I’ll be writing a huge cheque, because you’ve got to think about the future losses,” he had said.

Earlier this week, directors of the Knightsbridge-based Harvey Nichols warned that the business faced collapse unless it secured a buyer or obtained emergency funding.

Confirming the deal on Thursday, Frasers chief executive Michael Murray said: “Harvey Nichols is an iconic British institution with significant potential, but it is clear meaningful change is needed. “.

“The turnaround will require tough choices, and we are prepared to make those decisions, even if that means a smaller business in the near term, to create a stronger and more sustainable Harvey Nichols for the long term.”

Frasers has made several moves for luxury brands in recent years, including an unsuccessful attempt to gain control of upmarket bagmaker Mulberry.

Last month, the group submitted a £1.7bn offer for German fashion house Hugo Boss. Frasers subsequently increased its stake in the company to 37 per cent, triggering a mandatory offer for all of the shares it does not already own.

Frasers said its acquisition of Harvey Nichols will build on the group’s “elevation strategy, strengthening its luxury positioning”. Julia Goddard, chief executive of Harvey Nichols, said: “Today marks an important milestone for Harvey Nichols and provides a strong platform for the next phase of the business’s evolution under the ownership of Frasers Group.

“Over the past year, we have made significant progress in repositioning this iconic business, investing in our flagship store, broadening our customer proposition, and strengthening the brand DNA.”

Tyson Foods announced Thursday that it will close two facilities and is pursuing the sale of a third as it makes “strategic changes” to its beef business.

The company will end operations at its Joslin, Illinois, beef plant and its Eagle Mountain, Utah, case-ready facility, while pursuing a sale of its Pasco, Washington, beef facility, according to a Tyson Foods news release.

“Tyson Foods will anchor its beef business around three strategically located beef facilities in the central United States: Dakota City, Nebraska; Holcomb, Kansas and Amarillo, Texas, to create a more competitive footprint amidst one of the most historic cattle shortages the country has ever experienced,” the meatpacking giant said.

HIGH BEEF PRICES HITTING CONSUMERS AS MEATPACKING GIANT WARNS OF SUPPLY STRUGGLES

Beef cattle gather in a pasture. Tyson pointed to recent data showing continued limited heifer retention, a sign that tight cattle supplies could persist. (Angela Piazza/The Dallas Morning News, File)

Tyson pointed to recent data showing continued limited heifer retention, a sign that tight cattle supplies could persist.

“Recent USDA cattle inventory data, which included continued evidence of limited heifer retention, indicates these supply constraints are likely to persist, requiring strategic action,” the company said.

Capacity from the Illinois and Utah facilities will be shifted to other Tyson locations that the company said have “ample capacity to grow.”

Tyson also plans to ramp a second shift back up at its Amarillo, Texas, plant as more cattle become available.

US SOYBEAN FARMERS RACE TO MEET GLOBAL DEMAND AS FARMLAND SHRINKS

Capacity from the Illinois and Utah facilities will be shifted to other Tyson locations that the company said have “ample capacity to grow.” (Cheng Xin/Getty Images)

“These changes will allow the company to maintain a similar level of cattle harvesting across a more efficient and modern network,” the news release states.

The company also said it will support employees affected by the closures.

“The company is committed to supporting our team members through this transition, including helping them apply for open positions at other facilities,” Tyson said. 

The changes come as American consumers continue to face elevated beef prices and meatpackers grapple with tight cattle supplies and higher costs.

TRUMP DECLARES FOOD SUPPLY EMERGENCY, SUSPENDS TARIFFS ON KEY FERTILIZER IMPORTS

Tyson Foods packaged steak strips are displayed at a store in Washington, D.C., on Nov. 19, 2012. Tyson also plans to ramp a second shift back up at its Amarillo, Texas, plant as more cattle become available. (Andrew Harrer/Bloomberg via Getty Images)

The U.S. cattle herd has fallen to historically low levels due to drought reducing forage areas in key ranching regions, which forced ranchers to liquidate cattle. 

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Tyson highlighted those pressures during its recent earnings call, with CEO Donnie King saying, “Beef hasn’t performed the way we expected, and we’re not pretending otherwise.”

FOX Business’ Eric Revell contributed to this report.