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A Hardware Company With Software-Level Margins

A Hardware Company With Software-Level Margins

Fortinet sells hardware, but that’s not what drives the economics. The real business is recurring services layered on top of its sticky infrastructure.

Nick Horob
Nick Horob
The Holy Grail Metric for Recurring Revenue Businesses

The Holy Grail Metric for Recurring Revenue Businesses

This profile breaks down how Net Revenue Retention helped turn a mid-sized SaaS business into a take-private candidate.

Nick Horob
Nick Horob
Sticky Software, Defensible from AI?

Sticky Software, Defensible from AI?

Clarivate owns benchmarks and databases that institutions are afraid to replace. That creates reliable recurring revenue and pricing power. But is it enough to defend them against AI software innovation?

Nick Horob
Nick Horob
Dealer Networks > DTC ?

Dealer Networks > DTC ?

Toro sells mowers, irrigation, and construction gear. It's moat is in its dealers, service, parts, and availability. It's give me motivation to revisit using channel partners in my future ventures.

Nick Horob
Nick Horob
My New Year's Resolution in Company-Form

My New Year's Resolution in Company-Form

I’m trying to start the year by doing less things better. Illinois Tool Works has been doing that for a long time. And it sure appears to be working.

Nick Horob
Nick Horob
Will Enterprise Software Stay Sticky in an AI World?

Will Enterprise Software Stay Sticky in an AI World?

OpenText is a useful case study for this question. The company runs on long-term contracts and deep switching costs, but AI is making it easier for companies to build internal tools. Will their 94% renewal rate hold up?

Nick Horob
Nick Horob
Selling Once, Getting Paid for 30 Years

Selling Once, Getting Paid for 30 Years

Chart sells long-life mission-critical products like cryogenic tanks and compressors. But they have moved their business model to focus more on after-installation opportunities. Service, parts, and long-term maintenance contracts now drive a large share of revenue.

Nick Horob
Nick Horob
Lemonade Sparked My Curiosity

Lemonade Sparked My Curiosity

First of all, yesterday's report made me get a life insurance quote from them, and second of all, I've always been curious how reinsurance works. So I decided to dive in.

Nick Horob
Nick Horob
The Insurance Metrics That Decide Whether Lemonade Works or Fails

The Insurance Metrics That Decide Whether Lemonade Works or Fails

Lemonade is betting that AI and automation can bend insurance economics over time. This deep dive looks past the branding to examine underwriting performance, expense leverage, and how much risk Lemonade is taking itself.

Nick Horob
Nick Horob
Why This Company Was Down 25% in One Trading Day Last Week

Why This Company Was Down 25% in One Trading Day Last Week

Frozen fries look simple. The economics aren’t. Lamb Weston’s FY2025 performance is a clear example of how fixed costs, CapEx timing, and utilization can hammer profit margins.

Nick Horob
Nick Horob
When the Tech Works but the Margins Don’t (Yet?)

When the Tech Works but the Margins Don’t (Yet?)

Ballard Power Systems has spent decades proving hydrogen works in heavy-duty vehicles. What they are still proving is whether it can make money at scale.

Nick Horob
Nick Horob
An Airing of Grievances w/ Beyond Meat

An Airing of Grievances w/ Beyond Meat

Bah humbug to growth stories built on hope. Beyond Meat is what happens when you scale manufacturing like software and make overly aggressive assumptions at every turn.

Nick Horob
Nick Horob
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