Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
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In-line quarter. While revenues were a tad lighter than we hoped, the company over delivered on its SG&A cuts. As such, adj. EBITDA was in line with expectations. The modest revenue variance was completely due to softer Contact Center revenue. A portion of the revenue decline was due to the loss of a client, but there appears to be a strong pipeline of business. As such, Contact Center revenue trends should improve in subsequent quarters.
Cost cutting initiatives take center stage. SG&A expenses declined in each of the company’s operating segments, with cuts that exceeded expectations in each segment, as well. We believe that the cost reductions set the company up well for significant margin expansion as the market environment returns toward “normalcy.”
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Resources Connection, Inc. provides agile consulting services in North America, Europe, and the Asia Pacific. The company offers finance and accounting services, including process transformation and optimization, financial reporting and analysis, technical and operational accounting, merger and acquisition due diligence and integration, audit readiness, preparation and response, implementation of new accounting standards, and remediation support. It also provides information management services, such as program and project management, business and technology integration, data strategy, and business performance management. In addition, the company offers corporate advisory, strategic communications, and restructuring services; and corporate governance, risk, and compliance management services, such as contract and regulatory compliance, enterprise risk management, internal controls management, and operation and information technology (IT) audits. Further, it provides supply chain management services comprising strategy development, procurement and supplier management, logistics and materials management, supply chain planning and forecasting, and unique device identification compliance; and human capital services, including change management, organization development and effectiveness, compensation and incentive plan strategies, and optimization of human resources technology and operations. Additionally, the company offers legal and regulatory supporting services for commercial transactions, global compliance initiatives, law department operations, and law department business strategies and analytics. It also provides policyIQ, a proprietary cloud-based governance, risk, and compliance software application. The company was formerly known as RC Transaction Corp. and changed its name to Resources Connection, Inc. in August 2000. Resources Connection, Inc. was founded in 1996 and is headquartered in Irvine, California.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
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A CEO Transition. Yesterday, Resources Connection announced the appointment of Board member Roger Carlile to serve as President and CEO, effective immediately. The leadership change comes as the Company seeks to advance its strategic transformation. Concurrently, former President and CEO Kate Duchene has transitioned to Executive Advisor through January 3, 2026.
Carlile at RGP. Mr. Carlile joined RGP’s Board of Directors in June 2024. Since joining the Board, Mr. Carlile has been working with the Company on the growth strategy with a focus on CFO Advisory and Digital Transformation consulting solutions. As CEO, Mr. Carlile brings a strong combination of skills, as both a former CFO of a public consulting firm and the founder and former CEO of a high-growth consulting firm, and has proven expertise in professional services management, investor engagement, and capital allocation strategies.
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ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For additional information, visit www.ISG-One.com
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
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3Q25. Operating performance in 3Q25 exceeded expectations. Revenue came in at $62.4 million, up 1.8% y-o-y and up 8.8% excluding divested operations. Adjusted EBITDA grew 19% to $8.4 million and adjusted EBITDA margin expanded nearly 200 basis points to 13.5%, again ex divested ops. ISG reported GAAP net income of 3.1 million, or EPS of $0.03/sh, compared to $1.1 million, or EPS of $0.02/sh, last year. Adjusted EPS was $0.09 versus $0.05 last year.
AI and Recurring Revenue. Management noted revenue derived from AI-related activities accounted for some $20 million of overall revenue in the quarter. Recurring revenue was $28 million, up 9% year-over-year, representing 45% of overall revenue. We expect both AI-related revenue and overall recurring revenue to increase going forward.
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Comstock (NYSE: LODE) innovates technologies that contribute to global decarbonization and circularity by efficiently converting under-utilized natural resources into renewable fuels and electrification products that contribute to balancing global uses and emissions of carbon. The Company intends to achieve exponential growth and extraordinary financial, natural, and social gains by building, owning, and operating a fleet of advanced carbon neutral extraction and refining facilities, by selling an array of complimentary process solutions and related services, and by licensing selected technologies to qualified strategic partners. To learn more, please visit www.comstock.inc.
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
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Raising our rating to Outperform. We are raising our investment rating to Outperform from Market Perform with a price target of $6.75 per share. With the completion of an equity offering in August that raised net proceeds of $31.8 million, Comstock has eliminated its debt obligations and is expected to be able to fund Comstock Metals’ first commercial-scale metal recycling facility. We think the company is in a much stronger position to execute its growth plans.
Comstock Metals offers investors a visible growth path. Comstock Metals is anticipated to commission a commercial-scale recycling facility with 100,000 tons per year of capacity during the first quarter of 2026 and begin ramping up operations during the second quarter. In 2026, we expect the facility to process approximately 25,225 tons of solar panels, generating revenues of $12.6 million from tipping fees, $5.0 million from mineral and metal recoveries, and a gross operating profit of $13.9 million. We expect the facility to operate at 100,000 tons per year in 2027.
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Aluminum prices surged to their highest level since May 2022, driven by supply constraints in China and renewed optimism for global demand following a tentative trade truce between the United States and China. In October alone, aluminum climbed more than 7%, marking its strongest monthly performance in over a year. The rally highlights the market’s sensitivity to geopolitical developments, production policies, and shifts in industrial demand.
China, the world’s largest aluminum producer, has implemented state-imposed production limits that are gradually tightening supply. At the same time, demand is rebounding across major sectors such as construction, automotive, and consumer goods. This combination of constrained supply and recovering demand is putting upward pressure on aluminum prices, as buyers compete for a limited quantity of the metal both domestically and internationally.
The recent easing of US-China trade tensions has further strengthened market sentiment. The two countries reached a broad agreement, with many points of contention scheduled to be revisited in a year. For now, the truce reduces uncertainty in global trade, allowing companies to plan production and investments with greater confidence. The temporary stability in trade relations has provided support for metals markets, contributing to optimism over future aluminum demand.
However, there are still risks to consider. Economic activity in China has shown signs of slowing. A private manufacturing survey indicated a sharper-than-expected contraction in October, while the country’s official factory gauge recorded its longest streak of declines in more than nine years. Slowing industrial activity could moderate aluminum demand growth, introducing a measure of caution to the current rally. Investors are carefully weighing the benefits of tighter supply and improved trade conditions against the potential impact of a softening Chinese economy.
On the London Metal Exchange, aluminum futures rose 0.6% to settle at $2,902 per metric ton, while other metals experienced mixed results, with copper down 0.3% and zinc up 1.5%. These movements demonstrate the nuanced responses of commodity markets to global trade developments, policy changes, and economic indicators.
For small-cap companies in the aluminum and broader metals sector, the price rally could have both opportunities and challenges. On the positive side, higher aluminum prices can lead to improved revenue and margins for producers, particularly for smaller companies that are more agile and able to respond quickly to market conditions. Small-cap aluminum suppliers and processors could see increased demand from industrial buyers looking to secure supply before prices climb further. Additionally, renewed investor confidence in metals markets could lead to greater access to capital for smaller firms seeking expansion or modernization projects.
However, there are also risks. Smaller companies often operate with thinner cash reserves and less diversified customer bases, which can make them more vulnerable to price volatility. Rapid increases in aluminum costs may also raise input expenses for downstream small businesses, such as fabricators or specialty alloy producers, potentially squeezing margins if they cannot pass costs onto customers. Moreover, any renewed trade tensions or a slowdown in China’s industrial sector could disproportionately impact smaller firms, as they may have less capacity to absorb shocks compared to large multinational producers.
Overall, aluminum’s rise reflects broader trends in the metals market, where production policies, geopolitical developments, and economic forecasts converge to shape pricing and investor behavior. As China’s production limits take effect and global demand outlooks improve under calmer trade relations, aluminum could maintain upward momentum in the near term. For small-cap companies, navigating this environment successfully will require strategic management of supply contracts, pricing, and operational efficiency. The current three-year high underscores aluminum’s central role in global industry and the market’s responsiveness to policy and economic signals.
On November 3, 2025, Coeur Mining announced its acquisition of New Gold Inc., marking a significant shift in the landscape of North American precious metals producers. This all-stock transaction will unite two major players, resulting in a combined entity with a projected $20 billion market capitalization and operations concentrated entirely in North America.
The basis of the deal centers on Coeur’s wholly-owned subsidiary acquiring all outstanding shares of New Gold, with shareholders of each New Gold share set to receive 0.4959 Coeur shares. This exchange implies a valuation of $8.51 per New Gold share, representing a meaningful premium to recent market prices. Post-transaction, current Coeur shareholders will hold approximately 62% of the new company, with New Gold investors owning the remaining 38%.
For investors tracking small and mid-cap mining stocks, this acquisition stands out for several reasons. First, the combination brings together seven North American mining operations, including New Gold’s two flagship Canadian mines and Coeur’s five productive sites spanning the U.S., Mexico, and Canada. By 2026, the combined firm is expected to deliver around 1.25 million gold equivalent ounces annually, including notable outputs of 20 million ounces of silver, 900,000 ounces of gold, and 100 million pounds of copper. Importantly, over 80% of future revenues are anticipated to be generated from U.S. and Canadian sales, consolidating risk and operational focus within stable jurisdictions.
Financially, Coeur’s previously forecast 2025 EBITDA of about $1 billion and $550 million in free cash flow sees a major uplift. The addition of New Gold’s assets is projected to nearly triple EBITDA to approximately $3 billion and boost free cash flow to $2 billion in 2026. These figures highlight the strategic rationale underpinning the deal: lowering costs per ounce, boosting margins, and achieving scale advantages, all while enhancing the combined company’s ability to access investment-grade credit ratings and return capital to shareholders.
The newly formed company’s robust financial stance enables accelerated investment in key growth projects. New Gold’s mines—especially development at the K-Zone at New Afton and ongoing exploration at Rainy River—will benefit from additional capital and management resources. These investments are expected to unlock organic growth, longer mine life, and further enhance net asset values per share, driving potential share price appreciation and sector re-rating.
Another facet crucial to investors is the promise of improved capital market positioning. The merged firm will stride into the global top 10 for precious metals producers and land within the leading five for silver production, with silver accounting for 30% of total reserves. Greater scale brings enhanced trading liquidity—forecasted at over $380 million daily—and upcoming dual U.S. and Canadian listings, raising visibility among generalist investors, ETFs, and potential index inclusions.
From a governance perspective, the transaction will see members of New Gold’s team onboard with Coeur, including their current CEO and another director joining the expanded board. This blending of management brings together operational experience and expertise across diverse sites and regulatory regimes, positioning the company for long-term resiliency and adaptability.
For Canada and local mine communities, planned commitments include sustained investment, employment, Indigenous partnerships, and maintained regional offices, underscoring the deal’s local benefits alongside broader industry consolidation.
With customary deal protections and reciprocal break fees in place, the transaction is set to close in the first half of 2026, pending regulatory and shareholder approvals. Upon closing, New Gold shares will be delisted and the company’s legacy will contribute to building an all-North American miner poised for sector leadership, robust cash flow, and strategic advantage.
Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.
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Phase 3 Data To Be Presented At A Medical Meeting. Presentation of data from the Hydronidone Phase 3 trial is scheduled for Friday, November 7,2025 at the The Liver Meeting, the annual conference of the American Association for the Study of Liver Disease (AASLD). This presentation is expected to give detailed clinical data on the actions Hydronidone in liver fibrosis associated with chronic hepatitis B infection. We see this indication as proof of concept as well as a revenue opportunity.
We Expect Additional Clinical Trial Details To Be Presented. The Phase 3 trial met its primary endpoint of regression of liver fibrosis, with treated patients showing a regression rate of 52.85% compared with a placebo patient rate of 29.84% (p=0.0002). This reduction compared with placebo is both statistically significant and clinically meaningful. An important secondary endpoint, reduction in inflammation, also showed meaningful improvement.
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DLH delivers improved health and readiness solutions for federal programs through research, development, and innovative care processes. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to public health to improve the lives of millions. For more information, visit www.DLHcorp.com.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
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New Data. DLH filed an 8-K disclosing some preliminary financial data for the fiscal year ended September 30, 2025, and updates on its CMOP (the good) and Head Start (not so good) contracts. Bad news first: DLH has lost the Head Start contract, which went to a small business. This contract generated $40 million of revenue in fiscal 2024 and $28.4 million in the first nine months of fiscal 2025. With the government shutdown ongoing, the status of protests from unsuccessful bidders is unclear.
CMOP. On the positive side, DLH has been awarded a sole-source ID/IQ to continue providing pharmacy and logistics services for 4 CMOP locations. The contract has a ceiling value of $90 million and has a maximum performance period through April 2027. The Company expects the quarterly revenue contribution from these contracts to be approximately $28 million, in-line with current revenue volume on this contract.
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ACCO Brands Corporation is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Esselte®, Five Star®, GBC®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
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Soft Environment. ACCO’s third quarter operating results continue to reflect a soft end market environment, with reported revenue below expectations. However, the Company delivered third quarter adjusted EPS in line with the outlook and expanded gross margin by 50 basis points as the Company continued to demonstrate strong operational discipline through ongoing execution of the $100 million cost reduction program.
Financials. Revenue of $383.7 million was down 8.8% from $420.9 million in 3Q24, modestly below management’s expected decline of 5-8%. We were at $392 million. Comp sales were down 10.3%, reflecting softer global demand. Adjusted net income was $19.5 million, compared with adjusted net income of $22.5 million in 2024, and adjusted earnings per share were $0.21, within the $0.21-$0.24 guide, but down from $0.23 in 2024. We had estimated adjusted EPS of $0.23.
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The U.S. Treasury has announced a new 4.03% rate for Series I savings bonds, effective from November 1, 2025, through April 30, 2026. The rate marks a modest increase from the previous 3.98%, offering investors a slightly higher return on one of the government’s most secure, inflation-linked assets.
The new composite rate is made up of two parts — a variable rate of 3.12% based on recent inflation data and a fixed rate of 0.90%, which will remain constant for the life of the bond. Together, they form the 4.03% annualized yield. While the fixed rate is slightly lower than the 1.10% offered in May, the uptick in the inflation component helped push the total return higher.
I Bonds surged in popularity in 2022 when the rate peaked at a record 9.62%, drawing massive inflows from investors looking for a safe hedge against inflation. Though inflation has since cooled, many savers have continued to hold onto their bonds, while new buyers have taken advantage of the relatively high fixed-rate portion compared to previous years.
For many households, I Bonds remain an appealing middle ground — providing government-backed security while outpacing many savings accounts and CDs. The interest compounds semiannually, and investors can hold the bonds for up to 30 years, though early redemptions before five years forfeit the last three months of interest.
The Treasury adjusts I Bond rates twice a year — in May and November — based on the Consumer Price Index. Each investor’s bond earns the announced variable rate for six months from the purchase date, regardless of subsequent changes. The fixed rate, however, is locked in for the full duration of ownership.
For example, an investor who bought I Bonds in March 2025 would have earned a 1.90% variable rate for the first six months and automatically shifted to 2.86% this September, creating a composite yield of about 4.06%.
The new rate is likely to draw fresh attention from retail investors seeking low-risk returns amid ongoing market volatility and uncertainty around the Federal Reserve’s path on rates. For many smaller investors, I Bonds offer a stable complement to more speculative holdings such as tech or small-cap equities.
However, higher government-backed yields can also divert short-term capital away from small-cap stocks, which often depend on investor risk appetite to attract flows. As safer assets like I Bonds and Treasuries become more rewarding, some investors may opt to park cash in guaranteed instruments instead of chasing growth in volatile small-cap or emerging sectors.
Still, for disciplined investors, this shift could create buying opportunities in undervalued small-cap names as liquidity temporarily moves toward fixed income.
The Treasury’s latest adjustment makes I Bonds slightly more attractive for conservative investors, even as broader market participants navigate mixed signals from the Fed and bond markets. For small investors, they remain a solid inflation hedge — and for opportunistic traders, the reallocation trend could open new value pockets in smaller-cap stocks.
For more than 45 years, 1-800-Flowers.com has offered truly original floral arrangements, plants and unique gifts to celebrate birthdays, anniversaries, everyday occasions, and seasonal holidays, and to deliver comfort during times of grief. Backed by a caring team obsessed with service, 1-800-Flowers.com provides customers thoughtful ways to express themselves and connect with the most important people in their lives. 1-800-Flowers.com is part of the 1-800-FLOWERS.COM, Inc. family of brands. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
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Q1 Results. The company reported Q1 revenue of $215.2 million, and an adj. EBITDA loss of $32.9 million, both of which were largely in line with our estimates of $217.9 million and a loss of $33.0 million, respectively. Revenue decreased 11.1% over the prior year period, in part, driven by the company’s strategic decision to focus on positive marketing contribution.
Focused on profitability. In an effort to mitigate the impact of tariffs and soft demand, there is a focus on reducing costs and maintaining stable profitability. As such, operating expenses were $127.3 million in the quarter, down $12 million y-o-y. When excluding non-recurring charges and deferred compensation effects, operating expenses were $124.9 million. The operational expense reductions were driven by a 15.8% reduction in marketing spend, reduced labor costs, and early progress from the company’s efficiency initiatives.
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Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
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3Q25. NN reported 3Q25 results that were below expectations, although there were some y-o-y improvements. Revenue of $103.9 million was down 8.5% y-o-y on a reported basis and down 4.4% on a pro forma basis. We had projected $115 million, and the consensus was $112 million. Gross margin rose to 16.8% and 18.8% on an adjusted basis, up from 14.5% and 16.8%, respectively, in 3Q24. Adjusted EBITDA grew to $12.4 million, or an 11.9% margin, up from $11.6 million and 10.2% last year. We had forecast $13.6 million. Adjusted net loss was $0.01/sh. We and consensus were at EPS of $0.01.
New Business. NN reported third quarter new business wins of $11.3 million, led by strategic wins in North America auto, fire protection, and aerospace and defense products. YTD, the Company has won $44.4 million of new business. Management’s goal remains to win $60-$70 million annually.
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Cumulus Media (NASDAQ: CMLS) is an audio-first media company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. Cumulus Media engages listeners with high-quality local programming through 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
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Q3 beats our downcast expectations. Q3 revenue of $180.3 million and adj. EBITDA of $16.7 million, both of which were modestly better than our estimates of $179.0 million and $12.9 million, respectively. Third quarter revenues declined 11.5% from the prior period, adversely affected by the absence of $3.6 million in Political advertising and the absence of The Daily Wire and The Dan Bongino Show.
DMS remains a bright spot. The Digital Marketing Services (DMS) business remains a bright spot, with revenue surging 34% in the quarter. Notably, the digital segment now represents approximately 50% of total digital segment revenue, helping to offset persistent weakness in the core broadcast radio business.
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