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Category: Australia

  • MIL-OSI USA: News 05/7/2025 Blackburn, Welch Introduce Bill to Safeguard Rideshare Passengers’ Privacy

    US Senate News:

    Source: United States Senator Marsha Blackburn (R-Tenn)
    WASHINGTON, D.C. – Today, U.S. Senators Marsha Blackburn (R-Tenn.) and Peter Welch (D-Vt.) introduced the Safe and Private Rides Act, which would require transportation network companies (TNCs) to notify passengers when their driver has a video recording device in the car and give passengers the opportunity to opt out of riding with a driver with a dashcam, preventing rideshare drivers from violating passengers’ privacy:
    “Passengers shouldn’t have to sacrifice their right to privacy the moment they step into a rideshare vehicle, and they deserve to know when they are being recorded,” said Senator Blackburn. “The Safe and Private Rides Act would increase transparency and ensure that both driver safety and passenger privacy are protected as more Americans take advantage of these services.”
    “Millions of people around the country rely on rideshare services for transportation every day, whether it’s to the doctor, work, or the airport. Folks using rideshare services deserve to have peace of mind about their digital privacy during a ride, which includes knowing if they will be filmed before calling a ride,” said Senator Welch. “Our bipartisan Safe and Private Rides Act gives passengers using rideshare services straightforward privacy protections by allowing the option to opt out of a rideshare using video recording devices that record passengers.”
    BACKGROUND
    Americans are increasingly using rideshare services as a form of transportation, and U.S. ridesharing profits are expected to generate $54 billion annually by 2027.
    In many American cities, rideshare drivers have expressed feeling uncomfortable and unsafe while driving and have turned to technology and dashcams to add a layer of safety. These dashcams, while beneficial for the driver, could present privacy concerns for passengers. In the past, some rideshare drivers have recorded their passengers and subsequently released the footage online, in a blatant violation of privacy. Passengers should ultimately have a right to know that they are being recorded and to opt out of riding in cars that utilize recording devices if they so choose.
    Rideshare companies have become a source of convenience and accessibility, and they are an example of American innovation. As they grow, their drivers should be able to use technology to protect themselves, and passengers should be able to make decisions to preserve their privacy.
    THE SAFE AND PRIVATE RIDES ACT
    The Safe and Private Rides Act would increase transparency by giving passengers choice while preserving the driver’s safety.
    Specifically, the Safe and Private Rides Act would: 
    Require TNCs to notify passengers when their driver has a video recording device in the car;
    Require TNCs to give passengers the opportunity to opt out of riding with a driver with a recording device in the car; and 
    Grant the Federal Trade Commission the authority to enforce these transparency requirements.
    Click here for bill text.

    MIL OSI USA News –

  • MIL-OSI: FSI ANNOUNCES TEN CENT SPECIAL DIVIDEND

    Source: GlobeNewswire (MIL-OSI)

    TABER, ALBERTA, May 07, 2025 (GLOBE NEWSWIRE) — FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE-AMERICAN: FSI), is the developer and manufacturer of biodegradable polymers for oil extraction, detergent ingredients and water treatment as well as crop nutrient availability chemistry. Flexible Solutions also manufactures biodegradable and environmentally safe water and energy conservation technologies. In addition, FSI is increasing its presense in the food and nutrition supplement manufacturing markets. Today the Company announces a ten-cent special dividend.

    The dividend will be paid May 28th to shareholders of record on May 19th

    Mr. Dan O’Brien, CEO, states, “We are pleased that our current financial condition and expectations of continued profitability allows us to dividend profits to shareholders at this time. However, this is a special dividend; not a regular dividend.” Mr. O’Brien continues, “The FSI Board and management will continue to monitor retained earnings and capital needs in order to execute the goals of growing the Company and declaring dividends when appropriate.”

    About Flexible Solutions International
    Flexible Solutions International, Inc. (www.flexiblesolutions.com), based in Victoria, British Columbia, is an environmental technology company. The Company’s NanoChem Solutions Inc. subsidiary specializes in biodegradable, water-soluble products utilizing thermal polyaspartate (TPA) biopolymers. TPA beta-proteins are manufactured from the common biological amino acid, L-aspartic and have wide usage including scale inhibitors, detergent ingredients, water treatment and crop enhancement. Along with TPA, this division started producing other crop enhancement products as well. In 2022, the Company entered the food and nutrition markets by obtaining FDA and SQF food grade approval for the Peru IL plant. The other divisions manufacture energy and water conservation products for drinking water, agriculture, industrial markets and swimming pools throughout the world

    Safe Harbor Provision
    The Private Securities Litigation Reform Act of 1995 provides a “Safe Harbor” for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward looking statement with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time to time in the company’s reports filed with the Securities and Exchange Commission.

    Flexible Solutions International
    6001 54thAve, Taber, Alberta, CANADA T1G 1X4

    Company Contacts
    Jason Bloom
    Toll Free: 800.661.3560
    Fax: 403.223.2905
    Email: info@flexiblesolutions.com

    To find out more information about Flexible Solutions and our products please visit www.flexiblesolutions.com

    If you have received this news release by mistake or if you would like to be removed from our update list please reply to: info@flexiblesolutions.com

    The MIL Network –

  • MIL-OSI Australia: ACCP to lead research into European child abuse responses

    Source:

    08 May 2025

    ACCP researcher Dr James Herbert will lead the project to analyse the Barnahus model .

    UniSA’s Australian Centre for Child Protection (ACCP) will lead research into the effectiveness of a multidisciplinary and child friendly response to child sexual abuse in Europe.

    ACCP has been awarded a $910,000 Oak Foundation grant to help evaluate the impact of the Barnahus response to child abuse.

    The Barnahus model (translates to ‘Children’s House’ in Icelandic) is a multidisciplinary and child friendly response to child sexual abuse in Europe that aims to bring together all relevant professionals under one roof, creating a safe and child-centred environment for investigation and support.

    Dr James Herbert will lead the million-dollar research project with partners in the United Kingdom and Germany to better understand the variations in how countries implement Barnahus and how to measure the impact of these different models for children.

    “The project will evaluate the impact of Barnahus in Europe and look at the evidence,” says Dr Herbert.

    “An Australian being awarded this grant for a project in Europe is a really important recognition of the work that ACCP has done to date in advancing research into multidisciplinary responses like Children’s Advocacy Centres (CAC) and Barnahus.”

    Along with research into multi-disciplinary models in Australia, Dr Herbert has a strong track record of international collaboration.

    This has included a national survey of CACs in the United States to identify the scale of resources they had to support children, contributing to a review of medical services at the Chicago CAC, supervising a research project in Canada into the alignment of multi-disciplinary teams, and serving on the international evaluation advisory committee for the Scottish ‘Bairns Hoose’.

    The research team will work closely with the Barnahus Network and their membership on the project across 28 countries in Europe.

     “The Barnahus approach is an excellent example of what systems change can look like and what’s possible when we put children at the centre of our considerations,” Dr Herbert says. “Long term, I’m hoping that we will be able to bring the learning and experience from this work back to Australia.”

    The ACCP has received the Oak Foundation grant under their Prevent Child Sexual Abuse Programme.

    The ACCP is Australia’s premier research centre for the prevention of child abuse and neglect; the Director is currently Professor Leah Bromfield (2025 Australian of the Year for SA). It was established by the Commonwealth Government in partnership with the University of South Australia in 2004 to better prevent and respond to child abuse and neglect by helping to not only grow the evidence base but also translate it into practice.

    …………………………………………………………………………………………………………………………

    Contact for interview: Dr James Herbert M: +61 402 298 734 E: james.herbert@unisa.edu.au

    Media contact: Candy Gibson M: +61 434 605 142 E: candy.gibson@unisa.edu.au

    Other articles you may be interested in

    MIL OSI News –

  • MIL-OSI: Altus Group Announces Voting Results of 2025 Annual General Meeting of Shareholders

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, May 07, 2025 (GLOBE NEWSWIRE) — Altus Group Limited (ʺAltus Group” or “the Company”) (TSX: AIF), a leading provider of commercial real estate intelligence, released today final voting results from its annual general meeting of shareholders (the “Meeting”) held virtually earlier today. A total of 39,662,907 common shares were represented at the Meeting, representing 87.84% of the 45,154,806 Common Shares of the Company as at the record date on March 26, 2025.

    Each of the nominees proposed for election as a director as listed in the Company’s Management Information Circular dated March 26, 2025, was elected by a majority of votes to serve until the next annual meeting or until a successor is elected or appointed, as detailed below:

    Name of Nominee Votes For % Votes Withheld %
    Wai-Fong Au 39,098,051 99.14 340,078 0.86
    Will Brennan 39,386,226 99.87 51,903 0.13
    Angela L. Brown 38,462,331 97.53 975,798 2.47
    Colin J. Dyer 38,200,152 96.86 1,237,977 3.14
    Michael J. Gordon 39,313,842 99.68 124,287 0.32
    James V. Hannon 39,317,393 99.69 120,736 0.31
    Anthony W. Long 38,655,371 98.02 782,758 1.98
    Raymond Mikulich 38,406,803 97.38 1,031,326 2.62
    Carolyn M. Schuetz 39,218,970 99.44 219,159 0.56
    Thomas W. Warsop, III 39,156,178 99.29 281,951 0.71
    Janet P. Woodruff 38,173,037 96.79 1,265,092 3.21

    The motion with respect to the appointment of the Company’s auditor, Ernst & Young LLP, was approved by a majority of votes. A total of 39,564,401 (99.77%) votes were cast in favour, with 89,234 (0.23%) votes withheld.

    The advisory vote on approach to executive compensation was supported by a majority of votes, with a total of 38,395,561 (97.36%) votes cast in favour, and 1,042,568 (2.64%) votes against.

    A replay of the Meeting is available through a webcast posted on Altus Group’s website, www.altusgroup.com, under the Company section.  

    About Altus Group

    Altus connects data, analytics, and expertise to deliver the intelligence necessary to drive optimal CRE performance.  The industry’s top leaders rely on our market-leading solutions and expertise to power performance and mitigate risk. Our global team of ~2,000 experts are making a lasting impact on an industry undergoing unprecedented change – helping shape the cities where we live, work, and build thriving communities. For more information about Altus (TSX: AIF) please visit www.altusgroup.com. 

    FOR FURTHER INFORMATION PLEASE CONTACT:

    Martin Miasko 
    Sr. Director, Investor Relations and Strategy, Altus Group 
    (416) 204-5136 
    martin.miasko@altusgroup.com 

    The MIL Network –

  • MIL-OSI NGOs: Greenpeace calls on Woodside shareholders to reject gas expansion plans at AGM

    Source: Greenpeace Statement –

    PERTH, Thursday 8 May 2025 – Greenpeace Australia Pacific is challenging Woodside on its troubling track record of harming WA’s oceans at its AGM, and urged shareholders to reject Woodside’s plans to drill for gas near Scott Reef. 

    Environment groups and concerned community members will stage a protest outside Woodside’s AGM at the Crown Towers in Perth, and Greenpeace will also directly challenge Woodside’s leadership and its gas expansion plans during the AGM proceedings. 

    Due to participate in Woodside’s AGM as a proxy shareholder, David Ritter, CEO at Greenpeace Australia Pacific said: “For the fourth year, Greenpeace has returned to Woodside’s AGM to expose its shameful environmental track record of harm to marine life, oil and chemical spills, and more. Woodside’s plans pose an unacceptable risk–this is a company that simply can’t be trusted with our oceans. 

    “Woodside’s planned Browse gas field would entail drilling up to 50 wells as close as 2 kilometres from Scott Reef, home to nesting sea turtles, endangered pygmy blue whales and dusky sea snakes. Its new carbon dumping plans involve repeated seismic blasting over the next 39 years, which can deafen whales, near Scott Reef. 

    “Woodside wants to turn Scott Reef into an industrial gas zone. We urge Woodside shareholders not to allow our precious oceans, whales, and turtles to face potentially irreversible harm, and call on Woodside to reconsider its plans. 

    “From leaving its trash in the ocean until Greenpeace pushed it to clean it up to delivering a climate plan that faced unprecedented rejection by shareholders last year, Woodside’s environmental and climate governance under its current leadership is not up to scratch with what shareholders or regulators expect. 

    “To protect the environment, Greenpeace is urging shareholders to vote down the re-election of board director Ann Pickard, who chairs Woodside’s sustainability committee. Between the multiple environmental failures on her watch and her history of leading Shell’s now-abandoned push to destroy the Arctic for oil, she does not inspire any confidence on sustainability. 

    “We are also calling on the newly re-elected Albanese government to listen to the millions of Australians who rejected the Coalition’s gas fast-track plans, and voted for nature protection and a safe climate future powered by renewables. Sentiment for climate action was also clear in WA, with a surge in support for Independent candidates championing the shift away from climate-wrecking gas expansion. 

    “In its second term, the Albanese government has an opportunity to stand up for oceans, marine life and clean energy. It must heed the evidence and reject Woodside’s proposals to extend its North West Shelf gas processing facility, and develop the Browse gas field. Doing so would protect Scott Reef from damage from industrial activity and prevent billions of tonnes of climate-wrecking emissions. 

    “We are halfway through the critical decade for action on climate change, and in the middle of a climate and biodiversity crisis. Corporations, shareholders, and governments alike must put an end to polluting fossil fuel projects, and accelerate the transition to clean, affordable renewable energy.” 

    —ENDS—

    For more information or to arrange an interview please contact Vai Shah on 0452 290 082 or [email protected].

    Photos from the protest and file photos for editorial use will be available here after the protest: Google Drive folder

    MIL OSI NGO –

  • MIL-Evening Report: Marvel’s Thunderbolts* shines a light on men’s mental illness – but falls down with this outdated plotline

    Source: The Conversation (Au and NZ) – By Emily Baulch, Research Associate, Discipline of Media and Communications, University of Sydney

    Marvel Studios

    This piece contains spoilers.

    Marvel’s men are sad. And that’s a good thing.

    Thor’s depressed in Avengers: Endgame. Tony Stark has panic attacks in Iron Man 3. Peter grieves in Spider-Man: No Way Home.

    In Marvel’s latest release Thunderbolts* (or The New Avengers), we finally see a male superhero seek advice on how to deal with mental illness.

    The only problem? His impromptu therapist is a woman he’s only just met.

    A blanket of darkness

    Bob Reynolds (Lewis Pullman) is a new and damaged superhero experiment. Bob believes the world might be better off without him – foreshadowing that he’s not entirely wrong.

    Bob turns to Yelena Belova (Florence Pugh) for help. Yelena understands, saying “that darkness gets pretty enticing”. As she struggles to describe the feeling, Bob supplies the word: a void.

    Yelena offers a survival tactic: push the darkness deep down and carry on. It’s terrible advice and they both know it. But in that moment, it’s honest, and it connects them.

    Thunderbolts explores suicidal thoughts, PTSD and bipolar disorder. Bob speaks of the euphoric highs and shattering lows he experiences, often resulting in blackouts. His mental illness becomes metaphoric: his internal darkness manifests in his powers, and he becomes the villainous superpower of the film.

    Some of the film handles these themes well. Bob’s bipolar spreads into a dangerous blanket of darkness into which others, literally, vanish. At the film’s climax, Bob battles the dark, depressed version of himself. He beats himself up, seeking to beat the evil version of himself and, metaphorically, his mental illness. It doesn’t work. The darkness spreads to his stable self, too.

    But Yelena and the Thunderbolts fight their way to him, embracing him in a hug, and their support gives him the strength to confront his trauma.

    Women as emotional supports

    Done well, positive depictions of mental health struggles can be important pieces of representation.

    Unfortunately, most mental health depictions in major films are not done well, when they are included at all. Accurate portrayals of bipolar disorder remain rare. Research shows on young adult literature continues to lack mental health representation, especially by authors with lived experience.

    Across Hollywood, from Rey saving Kylo Ren in Star Wars to Beauty fixing the Beast, women are constantly cast as emotional supports for men.

    This is also true throughout the Marvel Cinematic Universe. The Black Widow offers the Hulk her hand; Tony Stark punches him to sleep. Scarlet Witch is forced to carry her grief for Vision. In Thunderbolts, Yelena becomes the latest emotional ballast for a traumatised man.

    The film’s depiction of men’s mental illness through the story of Bob Reynolds (Lewis Pullman) is an important one.
    Marvel Studios

    These women take these roles despite their own troubles, often without support or recognition from their male counterparts.

    Yelena steps into the dark emanating from Bob, believing her own struggles will allow her to help him. It’s poignant and beautiful in a way. Those who have walked through hell know the pathway through.

    But it’s also troubling.

    To save Bob from himself, she must risk her body, mind and mental wellbeing. Alone, her flashbacks become real as she comes face to face with her childhood trauma, undergoing psychological torture at Bob’s hands to reach him.

    The weight of emotional labour

    Yelena’s actions aren’t just a trope. They reflect a broader cultural script where women are expected to take on emotional responsibility not just for themselves but also for the men around them.

    Women are taught to care about others. At home and at work, the emotional labour undertaken by women often goes unnoticed, but it comes with real costs: stress, burnout and self-neglect.

    As men struggle with loneliness and a lack of friendships, women are expected to fill that gap. This dynamic, sometimes called “mankeeping”, leaves women doing the emotional work of informal therapy without support or reciprocity.

    Taking on these informal therapist roles results in disempowerment and dissatisfaction.

    The film’s depiction of Bob’s mental health issues has positive aspects: it goes against the pressure to conform to traditional ideas of masculinity, where men are taught to suppress their emotions and be stoic. Bob is allowed to be vulnerable and ask for help, and, despite his actions, is still shown to be worth helping.

    Too much caring responsibility falls on the shoulders of Yelena Belova (Florence Pugh), who has her own struggles.
    Marvel Studios

    A significant number of young men who follow masculinity influencers believe they need to be stoic and control their emotions and that women should occupy traditional gender roles, being soft, nurturing, motherly and supportive.

    These beliefs can not only discourage men from seeking professional help: they set women up to carry the emotional burden in relationships, often at great personal cost.

    Addressing mental health

    Toxic masculinity is well and truly alive, but women aren’t the answer to it.

    Addressing mental health issues effectively requires a multifaceted approach that includes professional intervention, personal responsibility and mutual support within relationships.

    Thunderbolts gestures toward progress, but doesn’t quite escape old tropes. Bob’s pain is real, but it’s also weaponised. His mental illness becomes a threat, and his instability something others must contain.

    The film acknowledges he’s struggling, but ultimately treats his struggle as dangerous as his void-like inner turbulence is unleashed on those around him. It’s a reflection of a broader cultural pattern: when men’s emotional pain is left unaddressed, it festers, and women are often expected to absorb the cost.

    We’re left with a troubling question: in the stories we tell, are we promising struggling young men a fairytale ending of romance and self-sacrifice in the shape of a young woman coming to save them from themselves?

    If this article has raised issues for you, or if you’re concerned about someone you know, call Lifeline on 13 11 14.

    Emily Baulch does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Marvel’s Thunderbolts* shines a light on men’s mental illness – but falls down with this outdated plotline – https://theconversation.com/marvels-thunderbolts-shines-a-light-on-mens-mental-illness-but-falls-down-with-this-outdated-plotline-255869

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Vietnam is poised to become a top 20 economy, so why is Australia taking so long to make trade and investment links?

    Source: The Conversation (Au and NZ) – By Anne Vo, Senior lecturer in Vietnamese culture and politics, University of Wollongong

    Aritra Deb/Shutterstock

    At a time of widespread global trade instability, Australia should be expanding and diversifying its economic partnerships. Supply chains remain fragile, and protectionist rhetoric is once again gaining traction in major Western economies.

    US President Donald Trump’s America First agenda includes sweeping tariffs on imports, withdrawal from multilateral agreements and pressure to take production in-house.

    At the same time, China, Australia’s largest trading partner, has often used trade for geopolitical leverage. In 2020, Beijing imposed tariffs of more than 200% on Australian wine. This wiped 30% off the sector’s export value.

    So economic diversification is not only desirable but strategically imperative.

    An opportunity

    Fifty years on from the fall of Saigon, Vietnam presents a compelling opportunity for economic and strategic diversification. The reunited country is eager to move beyond its wartime image and assert itself as an emerging economic powerhouse.

    Vietnam’s capital, Ho Chi Min City. The country has shifted from being a place synonymous with war to becoming one of the world’s top economies.
    Nguyen Quang Ngoc Tonkin/Shutterstock

    Since the launch of the Doi Moi reforms in 1986, Vietnam has embraced economic liberalisation and market-oriented policies. The Doi Moi reforms opened the economy to foreign trade, allowed private ownership and restructured state-owned enterprises.

    From a growth rate of just 1.6% in 1980, Vietnam is now set to become one of the world’s top 20 economies by 2050. In 2023 alone, it attracted A$8.5 billion in foreign direct investment, underscoring strong investor confidence.

    The 50th anniversary of reunification on April 30 provided insights into the country’s growth. Celebrations included military parades, 3D virtual reality displays and exhibitions promoting advances in technology.

    Slow to act

    Yet Australia has been slow to act. Despite geographic proximity and shared interests, Australia’s economic footprint in Vietnam remains surprisingly small. In 2023, Australian foreign direct investment totalled just A$3 million. It ranked 22nd, behind countries including Switzerland and Seychelles.

    In trade, the disparity is similarly stark. Vietnam accounts for only 2.33% of Australia’s exports and 1.4% of imports. Two-way trade between the two countries reached $26.3 billion in 2022. At the same time, Vietnam’s trade with the United States, topped A$191.9 billion.

    Some Australian firms are already making inroads. BlueScope Steel, Linfox, and SunRice have invested significantly in manufacturing, logistics and agriculture. And RMIT University has been a key player in transnational education since it opened the first of three campuses in Vietnam in 2000.

    ANZ and Qantas also have a visible presence. However, small and medium-sized enterprises – which comprise more than 98% of Australian businesses – remain largely absent. Many prefer export partnerships or distributor agreements over direct investment.

    Potential obstacles

    Australian companies have long favoured English-speaking or high-income markets. These offer greater institutional and cultural familiarity and regulatory certainty.

    Vietnam’s relationship-based commercial environment poses challenges, especially for firms lacking embedded networks and local knowledge. Concerns around regulatory transparency, intellectual property protection, contract enforcement and corruption – though improving – continue to weigh on corporate decisions.

    Small to medium enterprises, in particular, face extra barriers due to limited institutional support, regulatory understanding, market intelligence and in-country networks.

    Help from government

    The Australian government has taken some steps to catch up. The Enhanced Economic Engagement Strategy, launched in 2021, aims to double two-way investment and elevate both nations to top ten trading partner status.

    It identifies priority sectors such as agriculture, education, clean energy, digital technology and manufacturing. However, the strategy contains no enforceable legal protections, tariff concessions or means of dispute resolution.

    Manufacturing is one of the priority areas recognised in Australia’s Enhanced Economic Engagement Strategy for Vietnam.
    Hien Phung Tu/Shutterstock

    The lack of these matters. Japan, South Korea and the European Union have pursued coordinated economic strategies that include concessional loans, robust legal frameworks and in-market support services. These help their businesses thrive in Vietnam’s complex regulatory environment.

    Similarly, the EU has integrated trade promotion with legal certainty under agreements like the EU Vietnam Free Trade Agreement.

    More needs to be done

    Without comparable tools, Australia’s initiatives risk being more aspirational than actionable.

    Last year’s upgrade in bilateral ties to a Comprehensive Strategic Partnership, signals growing political will.

    For Australia to realise the potential of its relationship with Vietnam it should back long-term policies. These policies should reduce market entry barriers, incentivise small to medium enterprises and increase joint skills development.

    Investors also need legal and institutional support.

    Australia has strong potential to expand into emerging sectors. These include renewable energy, digital technology, healthcare, vocational education and training, green and smart infrastructure and agritech.

    Vietnam’s push for environmentally sustainable economic growth, digital transformation and workforce training aligns closely with Australian strengths. This creates opportunities for strategic investment and cooperation.

    There is the potential for Australia to build a dynamic partnership with Vietnam central to its long-term economic position in the Indo-Pacific.

    Anne Vo does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Vietnam is poised to become a top 20 economy, so why is Australia taking so long to make trade and investment links? – https://theconversation.com/vietnam-is-poised-to-become-a-top-20-economy-so-why-is-australia-taking-so-long-to-make-trade-and-investment-links-255722

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Why is hospital parking so expensive? Two economics researchers explain

    Source: The Conversation (Au and NZ) – By Lisa Farrell, Professor of Economics (Health Economist), RMIT University

    ThirtyPlus/Shutterstock

    Imagine having to pay A$39 dollars a day to park your car while visiting your sick child in hospital.

    For families already struggling in a cost-of-living crisis, hospital parking fees are not just another expense. They can be a financial barrier to supporting loved ones in their most vulnerable moments.

    Hospital parking is a big revenue earner. In New South Wales, public hospitals collected almost $51.7 million in parking fees in 2024. That was up from $30.2 million in 2023.

    It may be tempting to view hospital parking fees as exploiting a captive market. But the reality is much more complex.

    It involves urban economics, pressures on health-care funding and competing demands for limited space, often in busy city centres.

    Let’s start with supply and demand

    Basic economics tells us that price is the mechanism for balancing supply and demand. This is known as the equilibrium price. If demand is greater than supply, the price rises. So for urban hospitals, where parking spaces are limited, this scarcity creates market conditions that, not surprisingly, drive up prices.

    But economics also tells us that if there’s still demand for parking despite the price, then under some circumstances suppliers can charge more than the equilibrium price. Put simply, this “inelastic demand” means it is possible to charge more to a captive audience.

    You could certainly argue hospital patients and visitors are a captive audience. While many hospitals are well serviced by public transport, hospital patients and visitors are often too sick or time-poor to use it. So they have little choice than to pay for parking. For rural hospitals, there is limited or no public transport, so visitors have to drive.

    So are hospitals taking advantage of the inelastic demand for parking? Are they price gouging – setting prices above what is considered reasonable or fair? Or are there reasons for setting such high prices?

    Location, location, location

    Car parks of hospitals in prime locations are not just attractive to hospital patients and visitors. They’re also attractive to other users, such as those working in the city or sightseeing. High parking fees deter these users, ensuring spaces are available for hospital users.

    High prices prevent hospital users from overstaying. This prevents them doing non-hospital activities (such as shopping) after their hospital appointment or visits and before returning to their cars.

    Hospitals also charge high prices to raise revenue for health care. In a statement to the ABC earlier this year, NSW Health said extra money raised from parking is reinvested into health services and facilities.

    Hospitals are often in prime locations, such as Royal Prince Alfred Hospital in Sydney’s inner west.
    Rose Marinelli/Shutterstock

    But it makes sense to encourage visitors

    However, raising parking fees to support hospital budgets could be a false economy. We know hospital visitors have an important role in patients’ recovery times. So if high parking costs deter visitors or carers, this could lead to longer hospital stays for their loved ones.

    Cheaper parking might allow for more visiting, leading to shorter hospital stays and significant cost savings per patient.

    I (Lisa) had firsthand experience of this when my elderly father with dementia was admitted to hospital recently. The hospital allowed 24/7 visitor access for carers (in this case, my mother) and free hospital parking. Access 24/7 is important for patients with dementia who are often disorientated in hospital. This disorientation is typically worse in the evening (known as sundowning).

    Having carers present meant staff could focus on medical issues. It facilitated visits outside normal visiting hours (when dementia patients typically need the extra support) and when the demand for parking spaces is lower.

    Visitors are great for patients’ wellbeing and help their recovery. So we want to encourage them.
    DC Studio/Shutterstock

    Who needs cheap parking?

    High parking prices reflect the high demand for a fixed supply of parking spaces that are rationed to those most willing to pay (those with the income). But a better solution is to ration according to need (that is, to boost patient wellbeing).

    The economics solution is to charge different users different prices. Most hospitals do this already by offering concessions. But concessions can differ by hospital or state. Not everyone knows concession-rate parking is available, and it can be hard for some people to find out if they qualify.

    So if you are concerned about the cost of hospital parking, know the fees and available concessions before you park. You can find this on most hospitals’ websites.

    Currently, concessions are generally based on income (including the possession of a concession card). But we need a greater shift towards providing concession rates based on need. For example those visiting long-stay patients clearly need concessions to support patient wellbeing.

    A media campaign has called for a national cap on hospital parking costs for frequent users.

    Most car parks have a daily limit but frequent users can soon accumulate large bills over weeks or months of hospital visits. For many patients, particularly those requiring frequent treatments such as dialysis, parking costs accumulate annually.

    For people having frequent treatments, such as dialysis, parking costs can add up over the years.
    ainata/Shutterstock

    How could we make things cheaper and fairer?

    We need to apply concession rates to hospital visitors on the basis of need, not just income. Need should be informed by patient wellbeing and the importance of visitors to the healing process.

    We need a consistent set of rules across hospitals about concession-rate parking. This would simplify the process for hospital car park users.

    We also need to look at longer-term solutions. When expanding hospitals or planning new ones, we can consider transitioning away from prime locations. This would help make parking less attractive to non-hospital users.

    The challenge for health-care systems is balancing operational necessity of recovering costs with the ethics of equity and access that prevent necessary care.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. Why is hospital parking so expensive? Two economics researchers explain – https://theconversation.com/why-is-hospital-parking-so-expensive-two-economics-researchers-explain-255716

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: While the Liberals haemorrhaged, the Nationals held their own. Is it time to break up the Coalition?

    Source: The Conversation (Au and NZ) – By Linda Botterill, Visiting Fellow, Crawford School of Public Policy, Australian National University

    Among the notable features of this year’s election campaign was that Australia’s second-oldest political party was apparently missing in action. At the same time, it managed to avoid the rout inflicted on its coalition partner.

    The Nationals, who have represented rural and regional Australia in the federal parliament for more than a century, were nowhere to be seen as an identifiable, separate political party.

    This isn’t unusual. The parties that make up the Coalition do highly targeted messaging in their electorates, but then fall neatly into policy lockstep when an election is called. This time, however, the Nationals seemed particularly shy.

    Leader David Littleproud stopped issuing media releases on April 24, a full nine days before the election was held, and his speech to the National Press Club given that day was not available on the party website. It is hard to imagine former party leaders Tim Fischer, John Anderson or Ian Sinclair being quite so reticent.

    The focus of the commentary since election night has been on the Liberals’ failings, particularly in the major cities. You could be forgiven for thinking “Coalition” was a synonym for “Liberals”.

    But as the Liberal Party tries to reckon with these failings, the Nats are in a position of increasing power. The great survivors of Australian politics now appear to be better at surviving than their coalition counterparts. It’s just a question of how they want to use that power and longevity.

    Growing party power

    The Nationals are a uniquely Australian phenomenon. First, they are an avowedly agrarian party in a highly urbanised country.

    Second and more distinctly, they are part of what the rest of the world would see as a decidedly odd coalition arrangement. Elsewhere, coalition governments are negotiated after the election result is known and involve public bargaining and horse trading.

    In the Australian coalition arrangement, these negotiations occur behind closed doors and can hold even in opposition. The Nats benefit because they have access to ministerial and shadow ministerial positions with the power, salary and other advantages that these confer.

    The National Party largely held its own in the face of the Labor landslide. At most, it lost one of its 10 House of Representatives seats: Calare in northern New South Wales, which has been held by a former Nat, now independent.

    Its primary vote actually increased marginally from 3.6% in 2022 to 4.0%. This is less than One Nation (6.3%) but because of its dispersed vote, One Nation didn’t win a lower house seat.

    The Nats appear likely to lose a NSW senator as part of the joint party ticket. Nonetheless, the Nats are now a proportionally larger force in the Coalition, with Nats and Nationals-aligned LNP members accounting for just over 40% of Coalition MPs.

    On that basis they could become more influential over policies and shadow portfolios. Including senators, they now account for 30% of the Coalition party room.

    At a crossroads

    The demise of the Nationals has been predicted for decades, but still they persist.

    The peculiar Australian coalition arrangement works for them. They will benefit both from holding shadow ministerial positions if the Coalition is retained and likely having a greater role in determining policy direction.

    Whether the Liberals benefit from a continuing coalition is an open question. They need to rebuild in the cities and focus on regaining the support of voters who are socially liberal but economically conservative, younger, and female. There’ll inevitably be a review of what went wrong for the Liberals, and this might best be done free of ties to the Nats.

    The choice seems to be between shifting policy closer to the ten community independents or remaining hitched to the conservative Nationals. The ill-fated nuclear power policy has, after all, been attributed to David Littleproud.

    Deciding which way to fall won’t be easy. Apparently aware of his party’s increased leverage, Nationals Senator Matt Canavan has said they were led too much by the Liberals during the last parliament. He said:

    I worry that we have been gun shy in this last term of parliament in a futile attempt to give the Liberals space or some sort of opportunity to win seats in the city.

    So is now the time for the Coalition partners to go it alone? Probably not.

    On present numbers, the Liberals could struggle to form the opposition in their own right. The combined LNP in Queensland makes the situation even more complicated.

    The Nats have no incentive to leave. Open competition could see them lose seats to the Liberals in the future.

    And besides, two Liberal leadership contenders, Angus Taylor and Sussan Ley, hold seats with significant rural histories, both of which have been held by the Country/National Party.

    Linda Botterill has in the past received funding from the Australian Research Council, the Grains Research and Development Corporation, and Rural Industries Research and Development Corporation (now Agrifutures).

    – ref. While the Liberals haemorrhaged, the Nationals held their own. Is it time to break up the Coalition? – https://theconversation.com/while-the-liberals-haemorrhaged-the-nationals-held-their-own-is-it-time-to-break-up-the-coalition-255626

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: ‘Utu’ as foreign policy: how a Māori worldview can make sense of a shifting world order

    Source: The Conversation (Au and NZ) – By Nicholas Ross Smith, Senior Research Fellow, National Centre for Research on Europe, University of Canterbury

    Getty Images

    There is a growing feeling in New Zealand that the regional geopolitical situation is becoming less stable and more conflicted. China has ramped up its Pacific engagement, most recently with the Cook Islands, and the United States under Donald Trump is abandoning the old multilateral world order.

    As a result, we’re beginning to see New Zealand shift away from a two-decades-long preference for engaging with multiple partners towards a more conventional balancing strategy.

    Essentially, this attempts to counter the perceived threat from a strong country – namely China – with a combination of external alliances and internal policies.

    Externally, New Zealand has sought re-align itself within the US-led security sphere. Participation in pillar two of the AUKUS security pact has been seriously discussed, and New Zealand has actively engaged with NATO as a member of the “Indo-Pacific Four” (along with Australia, Japan and the Republic of Korea).

    Internally, a NZ$12 billion “defence plan” was announced in early April. This will see New Zealand increase defence spending from just over 1% of GDP to more than 2% over the next eight years.

    Foreign Minister Winston Peters has made no secret of these changing priorities. He has said he is simply taking “the world as it is”, adding:

    this realism is a shift from our predecessors’ vaguer notions of an indigenous foreign policy that no-one else understood, let alone shared.

    This was a direct repudiation of the previous Labour government’s foreign minister, Nanaia Mahuta. Her tenure had offered a glimpse of what a foreign policy guided by te ao Māori – the Māori worldview – might look like.

    Four tikanga Māori principles underpinned the policy: manaakitanga (hospitality), whanaungatanga (connectedness), mahi tahi and kotahitanga (unity through collaboration), and kaitiakitanga (intergenerational guardianship).

    ‘The world as it is’: Foreign Minister Winston Peters speaks at Rātana celebrations in Whanganui, January 24 2025.
    Getty Images

    Beyond Western-centric thinking

    Clearly, te ao Māori offers a very different way of looking at international relations. At its core it adopts a “relational” understanding of the world that views reality as a series of entanglements: “human with human, human with nonhuman, nonhuman with human, human and nonhuman with transcendent”.

    It is also a non-anthropocentric view: humans are not the masters of the world but rather stewards or custodians of a complex web of relations.

    But as we argue in a recent Global Policy article, despite good intentions, Mahuta’s four tikanga Māori were mostly used rhetorically. They did not fundamentally alter New Zealand’s foreign policy, which remained firmly Western-centric.

    We suggest those four tikanga principles would be enhanced by adding the concept of “utu” as a kind of overarching framework.

    Largely thanks to the famous 1983 film of the same name, utu is often thought to simply mean violent revenge. In fact, it is a much deeper concept that refers to the “process of restoring physical and spiritual relationships to an equal or harmonious state”.

    Utu as a foreign policy framework

    A foreign policy underpinned by utu, therefore, would seek to build relationships that are harmonious and reciprocal.

    Harmony, in this sense, goes beyond notions of an international order characterised by global peace, greater connectedness, increased cooperation and interdependence.

    While these are important, an utu-informed view of harmony would also take into account the relationship between humans and the natural world, and between present, past and future generations.

    Similarly, in the Western-centric view, reciprocity is typically “invoked as an appropriate standard of behaviour which can produce cooperation among sovereign states”.

    But utu involves a reciprocity built through hospitality (manaakitanga), something which has to be given even if serious discord exists in a relationship. Reciprocity is also important in interactions between humans and the natural world.

    Consequently, an utu foreign policy doctrine would offer a radically different lens than New Zealand is currently using.

    A genuinely independent foreign policy

    Firstly, it would require New Zealand to reject the Western geopolitical construct
    of the “Indo-Pacific”, which vastly oversimplifies the complex realities of the region.

    And it would mean viewing China not as an existential threat, but rather as a crucial relationship that is subject to the principles of manaakitanga, despite growing discord and diplomatic challenges.

    Secondly, it would see New Zealand recognise climate change as the primary existential threat to the status quo. This would align closely with the country’s Pacific neighbours whose Blue Pacific initiative offers an alternative to the Indo-Pacific focus.

    Lastly, it would help New Zealand more consistently and coherently pursue a genuinely independent foreign policy. This should have bipartisan appeal, as it would give New Zealand a unique perspective on the world.

    Ultimately, as New Zealand faces a more complex regional environment and a range of national security challenges, utu in its true sense offers a more constructive framework.

    Perhaps adopting a more complex – and more humble – understanding of the world, as provided by te ao Māori, would give policymakers an alternative pathway to simply taking “the world as it is”.

    The author acknowledges the contribution of independent researcher Bonnie Holster, co-author of the Global Policy paper on which this article is based.

    Nicholas Ross Smith does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. ‘Utu’ as foreign policy: how a Māori worldview can make sense of a shifting world order – https://theconversation.com/utu-as-foreign-policy-how-a-maori-worldview-can-make-sense-of-a-shifting-world-order-255602

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Australia is set to be a renewables nation. After Labor’s win, there’s no turning back

    Source: The Conversation (Au and NZ) – By Wesley Morgan, Research Associate, Institute for Climate Risk and Response, UNSW Sydney

    bmphotographer/Shutterstock

    An emphatic election victory for the incumbent Labor government means Australia’s rapid shift to renewable energy will continue. As Climate Change and Energy Minister Chris Bowen said on Saturday:

    In 2022, the Australian people voted to finally act on climate change. After three years of progress […] in 2025 they said keep going.

    The election result also means the debate about energy policy is now, in broad terms, over. Australia’s energy future is wind and solar, backed by storage.

    Coal and gas will have a fast-declining role to play and nuclear energy will have none at all. Australia is set to be a renewables nation. There is no turning back now.

    Cementing renewables investment

    By continuing to build renewables capacity, the returned Labor government can position Australia on the world stage as a genuine leader on clean energy.

    The Albanese government has set a national target of more than 80% of the main national electricity grid running on renewables by 2030. With such a large majority in parliament, Labor may well be in government at that time.

    Australia already has the world’s highest per-capita solar uptake, with about 300,000 solar systems installed each year. One in three Australian homes now has rooftop solar.

    Labor is complementing this boom with a new home battery discount scheme, which aims to have more than one million batteries installed by 2030. This will help stabilise the grid by reducing demand at peak times.

    But more investment in renewables is needed. The policy certainty of a returned Labor government should help to attract international capital. This is important, because more than 70% of investment in renewables in Australia comes from offshore.

    Securing climate consensus

    Labor’s win also means it can finally bed down a national consensus on climate policy.

    A recent survey on Australian attitudes to climate action suggested community views can shift if people see action is taken by governments and big business.

    This does not mean community opposition to renewable energy will evaporate – especially in regional Australia. The federal government must work with industry players and other levels of government to ensure proper public consultation. The new Net Zero Economy Authority will play an important role in ensuring the regions and their workers benefit from the energy transition.

    For its part, the Coalition needs to do some soul-searching. Australian voters returned a number of climate-friendly independents in key seats. The Coalition also failed to win support from younger Australians, who typically view renewables favourably.

    All this suggests continued opposition to renewables is unlikely to help the Coalition form government anytime soon. What’s more, continuing to promote nuclear power – which some in the Coalition are pushing for – makes little sense in an increasingly renewables-dominated grid.

    Doubling down on international climate cooperation

    Labor’s plans to rapidly expand renewable energy strengthen Australia’s credentials to host the COP31 UN climate talks with Pacific island countries next year.

    Australia’s bid has strong support from other nations. Turkey – the only other nation with its hand up to host – has so far resisted pressure from Australia to withdraw its bid. In support of their own bid, Turkish representatives pointed to uncertainty in Australia ahead of the May election – however that uncertainty has now passed.

    Adelaide will host the talks if Australia’s bid succeeds. This will be a chance to share our world-beating renewables story – including in South Australia, which is set to achieve 100% clean electricity by 2027.

    Australia could also use the talks in South Australia to promote new export industries that use renewable energy, especially plans to produce green iron and green steel at Whyalla.

    Hosting rights could attract investment in Australia’s renewables rollout and help promote exports of critical minerals and green metals. And it would enable Australia to cement its place in the Pacific during a time of increased geo-strategic competition, by promoting a renewables partnership for the whole region.

    Australia must move fast and secure the COP31 bid at climate talks in Germany next month. Any delay risks a less ambitious summit next year, because building consensus for new initiatives takes time.

    South Australia has made a bold bid to host COP31 (SA Government)

    Seizing our economic opportunities

    As Prime Minister Anthony Albanese said during his victory speech on Saturday, renewable energy is “an opportunity we must work together to seize for the future of our economy”.

    Australia is the world’s largest exporter of raw iron ore and metallurgical coal, both used extensively in offshore steelmaking.

    But Australia can create jobs and reduce emissions by refining iron ore in Australia using renewables and green hydrogen.

    The potential export value of green iron is estimated at A$295 billion a year, or three times the current value of iron ore exports. More broadly, our clean energy exports – including green metals, fertilisers and fuels – could be worth six to eight times more than our fossil fuel exports, analysis suggests.

    A key challenge for the returned government is assuring markets such as Japan that Australia is a long-term strategic partner, even while redirecting trade and investment away from coal and gas exports and toward long-term clean energy industries.

    Embracing Australia’s future

    Australians have delivered a strong mandate for climate action. The returned Labor government must ensure this support is not squandered, and voter trust is not lost.

    This means seizing the opportunity, once and for all, to shift Australia from our past as a fossil fuel heavyweight to our future as a renewables superpower.

    Wesley Morgan is a fellow with the Climate Council of Australia

    Ben Newell receives funding from the Australian Research Council

    – ref. Australia is set to be a renewables nation. After Labor’s win, there’s no turning back – https://theconversation.com/australia-is-set-to-be-a-renewables-nation-after-labors-win-theres-no-turning-back-256081

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI: Symbotic Reports Second Quarter Fiscal Year 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    WILMINGTON, Mass., May 07, 2025 (GLOBE NEWSWIRE) — Symbotic Inc. (Nasdaq: SYM), a leader in A.I.-enabled robotics technology for the supply chain, announced financial results for its second quarter of fiscal year 2025, which ended on March 29, 2025. Symbotic posted revenue of $550 million, a net loss of $21 million and adjusted EBITDA1 of $35 million for the second quarter of fiscal year 2025.

    By comparison, in the second quarter of fiscal year 2024, Symbotic had revenue of $393 million, a net loss of $55 million and adjusted EBITDA1 of $9 million.

    Cash and cash equivalents increased by $52 million from the prior quarter to $955 million at the end of the second quarter of fiscal year 2025.

    “Our execution has improved, and our margins expanded,” said Symbotic Chairman and Chief Executive Officer Rick Cohen. “With stronger project execution and a compelling roadmap of product innovation, we remain well-positioned to deliver increasing value to our stakeholders.”

    “Second quarter revenue grew by 40% year-over-year, and we delivered a record number of system starts and completes,” said Symbotic Chief Financial Officer, Carol Hibbard. “Looking forward, we remain committed to delivering improved execution while investing to support our future growth and innovation.”

    OUTLOOK

    For the third quarter of fiscal 2025, Symbotic expects revenue of $520 million to $540 million, and adjusted EBITDA2 of $26 million to $30 million.

    WEBCAST INFORMATION

    Symbotic will host a webcast today at 5:00 pm ET to discuss its second quarter of fiscal year 2025 results. The webcast link is: https://edge.media-server.com/mmc/go/Symbotic-Q2-2025.

    ABOUT SYMBOTIC

    Symbotic is an automation technology leader reimagining the supply chain with its end-to-end, A.I.-powered robotic and software platform. Symbotic reinvents the warehouse as a strategic asset for the world’s largest retail, wholesale, and food & beverage companies. Applying next-generation technology, high-density storage and machine learning to solve today’s complex distribution challenges, Symbotic enables companies to move goods with unmatched speed, agility, accuracy and efficiency. As the backbone of commerce, Symbotic transforms the flow of goods and the economics of the supply chain for its customers. For more information, visit www.symbotic.com. 

    USE OF NON-GAAP FINANCIAL INFORMATION

    Symbotic reports its financial results in accordance with Generally Accepted Accounting Principles in the United States (“U.S. GAAP”). This press release contains financial measures that are not recognized under U.S. GAAP (“non-GAAP financial measures”), including adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, and free cash flow. These non-GAAP financial measures have limitations as an analytical tool as they do not have a standardized meaning prescribed by U.S. GAAP. The non-GAAP financial measures Symbotic uses may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies and, therefore, are unlikely to be comparable to similar measures presented by other companies. Rather, these non-GAAP financial measures are provided as a supplement to corresponding U.S. GAAP measures to provide additional information regarding the results of operations from management’s perspective. Accordingly, non-GAAP financial measures should not be considered a substitute for, in isolation from, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. All non-GAAP financial measures presented in this press release are reconciled to their closest reported U.S. GAAP financial measures. Symbotic recommends that investors review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures provided in the financial statement tables included below in this press release, and not rely on any single financial measure to evaluate its business.

    Symbotic defines adjusted EBITDA, a non-GAAP financial measure, as GAAP net loss excluding the following items: interest income; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; business combination transaction expenses; equity method investment; internal control remediation; business transformation costs; fair value adjustments on strategic investments; restructuring charges; joint venture formation fees; equity financing transaction costs; and other infrequent items that may arise from time to time. Symbotic defines adjusted gross profit, a non-GAAP financial measure, as GAAP gross profit excluding the following items: depreciation, stock-based compensation, and restructuring charges. Symbotic defines adjusted gross profit margin, a non-GAAP financial measure, as adjusted gross profit divided by revenue. Symbotic defines free cash flow, a non-GAAP financial measure, as net cash provided by or used in operating activities less purchases of property and equipment and capitalization of internal use software development costs. In addition to Symbotic’s financial results determined in accordance with U.S. GAAP, Symbotic believes that adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, and free cash flow non-GAAP financial measures, are useful in evaluating the performance of Symbotic’s business because they highlight trends in its core business.

    FORWARD-LOOKING STATEMENTS

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, Symbotic’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning our possible or assumed future actions, business strategies, events, backlog or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates” or “intends” or similar expressions.

    Forward-looking statements include, but are not limited to, statements about the ability of or expectations regarding Symbotic to:

    • meet the technical requirements of existing or future supply agreements with its customers, including with respect to existing backlog;
    • expand its target customer base and maintain its existing customer base;
    • realize the benefits expected from the acquisition of Walmart’s Advanced Systems and Robotics business, the GreenBox joint venture, the Commercial Agreement with GreenBox, Symbotic’s acquisitions of developed technology intangible assets, and the commercial agreement with Walmart de México y Centroamérica;
    • realize its outlook, including its system gross margin;
    • anticipate industry trends;
    • maintain and enhance its system;
    • maintain the listing of the Symbotic Class A Common Stock on Nasdaq;
    • execute its growth strategy;
    • develop, design and sell systems that are differentiated from those of competitors;
    • execute its research and development strategy;
    • acquire, maintain, protect and enforce intellectual property;
    • attract, train and retain effective officers, key employees or directors;
    • comply with laws and regulations applicable to its business;
    • stay abreast of modified or new laws and regulations applying to its business;
    • successfully defend litigation;
    • issue equity securities in connection with future transactions;
    • meet future liquidity requirements and, if applicable, comply with restrictive covenants related to long-term indebtedness;
    • timely and effectively remediate any material weaknesses in its internal control over financial reporting;
    • anticipate rapid technological changes; and
    • effectively respond to general economic and business conditions.

    Forward-looking statements also include, but are not limited to, statements with respect to:

    • the future performance of Symbotic’s business and operations;
    • expectations regarding revenues, expenses, adjusted EBITDA and anticipated cash needs;
    • expectations regarding cash flow, liquidity and sources of funding;
    • expectations regarding capital expenditures;
    • the anticipated benefits of Symbotic’s leadership structure;
    • the effects of pending and future legislation, regulation and trade practices, including tariffs;
    • business disruption;
    • disruption to the business due to Symbotic’s dependency on certain customers;
    • increasing competition in the warehouse automation industry;
    • any delays in the design, production or launch of Symbotic’s systems and products;
    • the failure to meet customers’ requirements under existing or future contracts or customer’s expectations as to price or pricing structure;           
    • any defects in new products or enhancements to existing products;
    • the fluctuation of operating results from period to period due to a number of factors, including the pace of customer adoption of Symbotic’s new products and services and any changes in its product mix that shift too far into lower gross margin products; and
    • any consequences associated with joint ventures and legislative and regulatory actions and reforms.

    Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed in Symbotic’s Annual Report on Form 10-K for the fiscal year ended September 28, 2024, filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 4, 2024. These risk factors will be important to consider in determining future results and should be reviewed in their entirety. These forward-looking statements are expressed in good faith, and Symbotic believes there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements are provided for the purposes of assisting the reader in understanding our financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management’s current expectations and plans relating to the future, and the reader is cautioned not to place undue reliance on these forward-looking statements because of their inherent uncertainty and to appreciate the limited purposes for which they are being used by management. While we believe that the assumptions and expectations reflected in the forward-looking statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-looking statements speak only as of the date they are made and are based on the beliefs, estimates, expectations and opinions of management on that date. Symbotic is not under any obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports that Symbotic has filed or will file from time to time with the SEC.

    In addition to factors previously disclosed in Symbotic’s Annual Report on Form 10-K for the fiscal year ended September 28, 2024 filed with the SEC on December 4, 2024 and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: failure to realize the benefits expected from the acquisition of Walmart’s Advanced Systems and Robotics business and risks related to the acquisition.

    Any financial projections in this press release or discussed in the webcast are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond Symbotic’s control. While all projections are necessarily speculative, Symbotic believes that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection extends from the date of preparation. The assumptions and estimates underlying the projected results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the projections. The inclusion of projections in this communication should not be regarded as an indication that Symbotic, or its representatives, considered or considers the projections to be a reliable prediction of future events.

    Annualized, projected and estimated numbers are not forecasts and may not reflect actual results.

    This communication is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in Symbotic and is not intended to form the basis of an investment decision in Symbotic. The forward-looking statements contained in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf are expressly qualified in their entirety by these cautionary statements.

    INVESTOR RELATIONS CONTACT

    Charlie Anderson
    Vice President, Investor Relations & Corporate Development
    ir@symbotic.com

    MEDIA INQUIRIES
    mediainquiry@symbotic.com

    Symbotic Inc. and Subsidiaries
    Consolidated Statements of Operations
     
      Three Months Ended   Six Months Ended
     (in thousands, except share and per share information) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
    Revenue:                  
    Systems $ 513,372     $ 464,059     $ 370,693     $ 977,431     $ 718,398  
    Software maintenance and support   6,685       5,525       2,566       12,210       4,735  
    Operation services   29,594       17,109       20,073       46,703       30,142  
    Total revenue   549,651       486,693       393,332       1,036,344       753,275  
    Cost of revenue:                  
    Systems   414,560       381,819       342,124       796,378       626,071  
    Software maintenance and support   2,095       1,884       1,936       3,979       3,662  
    Operation services   25,168       22,951       19,052       48,120       29,266  
    Total cost of revenue   441,823       406,654       363,112       848,477       658,999  
    Gross profit   107,828       80,039       30,220       187,867       94,276  
    Operating expenses:                  
    Research and development expenses   61,540       43,592       46,462       105,133       88,606  
    Selling, general, and administrative expenses   78,347       61,076       48,652       139,421       95,663  
    Total operating expenses   139,887       104,668       95,114       244,554       184,269  
    Operating loss   (32,059 )     (24,629 )     (64,894 )     (56,687 )     (89,993 )
    Other income, net   11,714       7,823       9,812       19,536       16,011  
    Loss before income tax and equity method investment   (20,345 )     (16,806 )     (55,082 )     (37,151 )     (73,982 )
    Income tax expense (benefit)   1,397       (150 )     252       1,248       80  
    Loss from equity method investment   (2,490 )     (1,564 )     —       (4,055 )     —  
    Net loss   (21,438 )     (18,520 )     (54,830 )     (39,958 )     (73,902 )
    Net loss attributable to noncontrolling interests   (17,513 )     (15,044 )     (46,021 )     (32,557 )     (62,257 )
    Net loss attributable to common stockholders $ (3,925 )   $ (3,476 )   $ (8,809 )   $ (7,401 )   $ (11,645 )
                       
    Loss per share of Class A Common Stock:                  
    Basic and Diluted $ (0.04 )   $ (0.03 )   $ (0.09 )     (0.07 )   $ (0.13 )
    Weighted-average shares of Class A Common Stock outstanding:                  
    Basic and Diluted   107,726,978       106,098,566       93,043,769       106,900,622       88,155,791  
                                           

    Symbotic Inc. and Subsidiaries
    Reconciliation of Non-GAAP Financial Measures

    The following table reconciles GAAP net loss to Adjusted EBITDA:

      Three Months Ended   Six Months Ended
    (in thousands) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
    Net loss $ (21,438 )   $ (18,520 )   $ (54,830 )   $ (39,958 )   $ (73,902 )
    Interest income   (7,229 )     (7,769 )     (9,795 )     (14,998 )     (15,944 )
    Income tax expense (benefit)   (1,397 )     150       (252 )     (1,248 )     (80 )
    Depreciation and amortization   11,169       6,860       2,468       18,029       5,033  
    Stock-based compensation   47,962       28,741       34,726       76,703       64,188  
    Business Combination transaction expenses   3,298       3,802       —       7,100       —  
    Equity method investment   2,490       1,564       —       4,055       —  
    Internal control remediation   2,175       3,076       —       5,251       —  
    Business transformation costs   2,400       —       —       2,400       —  
    Fair value adjustments on strategic investments   (4,481 )     —       —       (4,481 )     —  
    Restructuring charges   (231 )     —       34,206       (231 )     34,206  
    Joint venture formation fees   —       —       —       —       1,089  
    Equity financing transaction costs   —       —       1,985       —       1,985  
    Adjusted EBITDA $ 34,718     $ 17,904     $ 8,508     $ 52,622     $ 16,575  
                                           

    The following table reconciles GAAP gross profit to Adjusted gross profit:

      Three Months Ended   Six Months Ended
    (in thousands) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
    Gross profit $ 107,828     $ 80,039     $ 30,220     $ 187,867     $ 94,276  
    Depreciation   2,949       2,469       88       5,418       181  
    Stock-based compensation   11,264       3,709       5,156       14,973       8,587  
    Restructuring charges   (231 )     —       34,206       (231 )     34,206  
    Adjusted gross profit $ 121,810     $ 86,217     $ 69,670     $ 208,027     $ 137,250  
                                           
    Gross profit margin   19.6 %     16.4 %     7.7 %     18.1 %     12.5 %
    Adjusted gross profit margin   22.2 %     17.7 %     17.7 %     20.1 %     18.2 %
                                           

    The following table reconciles GAAP net cash provided by (used in) operating activities to free cash flow:

      Three Months Ended   Six Months Ended
    (in thousands) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
                       
    Net cash provided by (used in) operating activities $ 269,575     $ 205,027     $ 21,072     $ 474,602     $         (9,078 )
    Purchases of property and equipment and capitalization of internal use software development costs   (20,560 )     (7,357 )     (2,871 )     (27,917 )             (5,864 )
    Free cash flow $ 249,015     $ 197,670     $ 18,201     $ 446,685     $         (14,942 )
                                           

    Symbotic Inc. and Subsidiaries
    Supplemental Common Share Information

    Total Common Shares issued and outstanding:

      March 29, 2025   September 28, 2024
    Class A Common Shares issued and outstanding 108,380,772   104,689,377
    Class V-1 Common Shares issued and outstanding 76,223,325   76,965,386
    Class V-3 Common Shares issued and outstanding 404,309,196   404,309,196
      588,913,293   585,963,959
           
    Symbotic Inc. and Subsidiaries
    Consolidated Balance Sheets
     
    (in thousands, except share data) March 29, 2025   September 28, 2024
    ASSETS
    Current assets:      
    Cash and cash equivalents $ 954,944     $ 727,310  
    Accounts receivable   137,562       201,548  
    Unbilled accounts receivable   160,248       218,233  
    Inventories   146,281       106,136  
    Deferred expenses   4,979       1,058  
    Prepaid expenses and other current assets   93,966       101,252  
    Total current assets   1,497,980       1,355,537  
    Property and equipment, net   123,706       97,109  
    Intangible assets, net   125,793       3,664  
    Goodwill   68,669       —  
    Equity method investment   85,323       81,289  
    Other assets   62,714       40,953  
    Total assets $ 1,964,185     $ 1,578,552  
    LIABILITIES AND EQUITY
    Current liabilities:      
    Accounts payable $ 220,027     $ 175,188  
    Accrued expenses and other current liabilities   166,269       165,644  
    Deferred revenue   1,086,297       676,314  
    Total current liabilities   1,472,593       1,017,146  
    Deferred revenue   8,152       129,233  
    Other liabilities   61,866       42,043  
    Total liabilities   1,542,611       1,188,422  
    Commitments and contingencies   —       —  
    Equity:      
    Class A Common Stock, 3,000,000,000 shares authorized, 108,380,772 and 104,689,377 shares issued and outstanding at March 29, 2025 and September 28, 2024, respectively   13       13  
    Class V-1 Common Stock, 1,000,000,000 shares authorized, 76,223,325 and 76,965,386 shares issued and outstanding at March 29, 2025 and September 28, 2024, respectively   7       7  
    Class V-3 Common Stock, 450,000,000 shares authorized, 404,309,196 shares issued and outstanding at March 29, 2025 and September 28, 2024   40       40  
    Additional paid-in capital   1,539,378       1,523,692  
    Accumulated deficit   (1,331,326 )     (1,323,925 )
    Accumulated other comprehensive loss   (2,698 )     (2,594 )
    Total stockholders’ equity   205,414       197,233  
    Noncontrolling interest   216,160       192,897  
    Total equity   421,574       390,130  
    Total liabilities and equity $ 1,964,185     $ 1,578,552  
                   
    Symbotic Inc. and Subsidiaries
    Consolidated Statements of Cash Flows
     
      Three Months Ended   Six Months Ended
    (in thousands) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
    Cash flows from operating activities:                  
    Net loss $ (21,438 )   $ (18,520 )   $ (54,830 )   $ (39,958 )   $ (73,902 )
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities:                  
    Depreciation and amortization   12,279       7,645       3,155       19,924       6,352  
    Equity in net loss from equity method investment   4,055       —       —       4,055       —  
    Foreign currency (gains) losses, net   20       (32 )     (30 )     (12 )     (8 )
    Gain on investments   —       —       (8,745 )     —       (8,745 )
    Loss on disposal of assets   —       201       —       201       —  
    Provision for excess and obsolete inventory   292       688       34,206       980       34,276  
    Stock-based compensation   43,355       26,773       28,065       70,128       57,527  
    Gain from strategic investment fair value adjustment   (4,481 )     —       —       (4,481 )     —  
    Changes in operating assets and liabilities:                  
    Accounts receivable   (3,195 )     67,376       25,328       64,181       (58,461 )
    Inventories   (23,232 )     (10,425 )     (16,353 )     (33,657 )     (17,920 )
    Prepaid expenses and other current assets   89,491       10,317       (9,777 )     99,808       (42,430 )
    Deferred expenses   (1,757 )     (2,164 )     2,106       (3,921 )     (5,046 )
    Other assets   (6,400 )     (1,079 )     440       (7,479 )     (5,466 )
    Accounts payable   13,806       31,145       30,576       44,951       23,315  
    Accrued expenses and other current liabilities   (65,685 )     45,540       (17,600 )     (20,145 )     (1,884 )
    Deferred revenue   230,283       58,336       2,678       288,619       72,644  
    Other liabilities   2,182       (10,774 )     1,853       (8,592 )     10,670  
      Net cash provided by (used in) operating activities   269,575       205,027       21,072       474,602       (9,078 )
    Cash flows from investing activities:                  
    Purchases of property and equipment and capitalization of internal use software development costs   (20,560 )     (7,357 )     (2,871 )     (27,917 )     (5,864 )
    Proceeds from maturities of marketable securities   —       —       140,000       —       290,000  
    Purchases of marketable securities   —       —       (343 )     —       (48,660 )
    Acquisitions of strategic investments   —       (17,992 )     —       (17,992 )     —  
    Cash paid for business acquisitions   (200,000 )     —       —       (200,000 )     —  
    Net cash provided by (used in) investing activities   (220,560 )     (25,349 )     136,786       (245,909 )     235,476  
    Cash flows from financing activities:                  
    Payment for taxes related to net share settlement of stock-based compensation awards   —       (3,012 )     (3,125 )     (3,012 )     (3,181 )
    Net proceeds from issuance of common stock under employee stock purchase plan   3,233       —       3,435       3,233       3,435  
    Distributions to or on behalf of Symbotic Holdings LLC partners   (382 )     (850 )     —       (1,232 )     —  
    Proceeds from issuance of Class A Common Stock   —       —       257,985       —       257,985  
    Proceeds from exercise of warrants   —       —       —       —       158,702  
    Net cash provided by (used in) financing activities   2,851       (3,862 )     258,295       (1,011 )     416,941  
    Effect of exchange rate changes on cash, cash equivalents, and restricted cash   50       (84 )     (13 )     (34 )     (15 )
    Net increase in cash, cash equivalents, and restricted cash   51,916       175,732       416,140       227,648       643,324  
    Cash, cash equivalents, and restricted cash – beginning of period   906,086       730,354       488,102       730,354       260,918  
    Cash, cash equivalents, and restricted cash – end of period $ 958,002     $ 906,086     $ 904,242     $ 958,002     $ 904,242  
                       
                       
      Three Months Ended   Six Months Ended
    (in thousands) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
    Reconciliation of cash, cash equivalents, and restricted cash:                  
    Cash and cash equivalents $ 954,944     $ 903,034     $ 901,382     $ 954,944     $ 901,382  
    Restricted cash   3,058       3,052       2,860       3,058       2,860  
    Cash, cash equivalents, and restricted cash $ 958,002     $ 906,086     $ 904,242     $ 958,002     $ 904,242  

    1 Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is a non-GAAP financial measure as defined below under “Use of Non-GAAP Financial Information.” See the tables below for reconciliations to net loss, the most comparable GAAP measure.

    2 Symbotic is not providing guidance for net loss, which is the most comparable GAAP financial measure to adjusted EBITDA, because information reconciling forward-looking adjusted EBITDA to net loss is unavailable to it without unreasonable effort. Symbotic is not able to provide reconciliations of adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of Symbotic’s control and/or cannot be reasonably predicted, such as the provision for stock-based compensation.

    The MIL Network –

  • MIL-OSI: Monroe Capital Corporation BDC Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, May 07, 2025 (GLOBE NEWSWIRE) — Monroe Capital Corporation (NASDAQ: MRCC) today announced its financial results for the first quarter ended March 31, 2025.

    Except where the context suggests otherwise, the terms “Company,” “we,” “us,” and “our” refer to Monroe Capital Corporation (together with its subsidiaries).

    First Quarter 2025 Financial Highlights

    • Net Investment Income (“NII”) of $4.1 million, or $0.19 per share
    • Adjusted Net Investment Income (a non-GAAP measure described below) of $4.2 million, or $0.19 per share
    • Net increase (decrease) in net assets resulting from operations of $0.5 million, or $0.03 per share
    • Net Asset Value (“NAV”) of $186.9 million, or $8.63 per share
    • Paid quarterly dividend of $0.25 per share on March 31, 2025
    • Current annual cash dividend yield to stockholders of approximately 14.3%(1)

    Chief Executive Officer Theodore L. Koenig commented, “We are pleased to announce that we paid a $0.25 per share dividend during the first quarter representing an approximate 14.3% annualized dividend yield. The dividend was supported by the meaningful spillover income we have accumulated from prior strong performance. Our approach remains centered on prioritizing asset quality and positioning the portfolio for long-term performance across changing market conditions.”

    Monroe Capital Corporation is a business development company affiliate of the award-winning private credit investment firm and lender, Monroe Capital LLC.

    _______________________
    (1)     Based on an annualized dividend and closing share price as of May 6, 2025.

    Management Commentary

    Adjusted Net Investment Income totaled $4.2 million, or $0.19 per share for the quarter ended March 31, 2025, a decrease from $6.2 million, or $0.29 per share for the quarter ended December 31, 2024. NAV decreased by $0.22 per share, or 2.5%, to $186.9 million or $8.63 per share as of March 31, 2025, compared to $191.8 million or $8.85 per share as of December 31, 2024. The decrease in NAV this quarter was primarily the result of net unrealized losses associated with certain portfolio companies and the first quarter dividend being in excess of the Company’s NII for the quarter. As of March 31, 2025, the Company has an estimated $0.53 per share in undistributed spillover income.

    At quarter end, the Company’s debt-to-equity leverage decreased from 1.53 times debt-to-equity at December 31, 2024 to 1.45 times debt-to-equity at March 31, 2025, as a result of paydowns of the revolving credit facility with proceeds from investment sales and paydowns during the quarter. We continue to focus on managing the Company’s investment portfolio and selectively redeploying capital resulting from future repayments.

    Selected Financial Highlights
    (in thousands, except per share data)

      March 31, 2025   December 31, 2024
    Consolidated Statements of Assets and Liabilities data: (unaudited)   (audited)
    Investments, at fair value $ 430,571   $ 457,048
    Total assets $ 461,518   $ 490,671
    Net assets $ 186,877   $ 191,762
    Net asset value per share $ 8.63   $ 8.85
      For the Quarter Ended
      March 31, 2025   December 31, 2024
    Consolidated Statements of Operations data: (unaudited)
    Net investment income $ 4,086     $ 6,022  
    Adjusted net investment income(2) $ 4,206     $ 6,185  
    Net gain (loss) $ (3,554)     $ (7,737)  
    Net increase (decrease) in net assets resulting from operations $ 532     $ (1,715)  
           
    Per share data:      
    Net investment income $ 0.19     $ 0.28  
    Adjusted net investment income(2) $ 0.19     $ 0.29  
    Net gain (loss) $ (0.16)     $ (0.36)  
    Net increase (decrease) in net assets resulting from operations $ 0.03     $ (0.08)  
     

    _______________________
    (2)     See Non-GAAP Financial Measure – Adjusted Net Investment Income below for a detailed description of this non-GAAP measure and a reconciliation from NII to Adjusted Net Investment Income. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company.

    Portfolio Summary

      March 31, 2025   December 31, 2024
      (unaudited)
    Investments, at fair value $ 430,571     $ 457,048  
    Number of portfolio company investments   85       91  
    Percentage portfolio company investments on non-accrual(3)   3.4%       3.4%  
    Weighted average contractual yield(4)   10.1%       10.2%  
    Weighted average effective yield(4)   9.2%       10.2%  
           
    Asset class percentage at fair value:      
    First lien loans   77.3%       79.1%  
    Junior secured loans   7.5%       6.5%  
    Equity investments   15.2%       14.4%  
     

    _______________________
    (3)     Represents portfolio debt or preferred equity investments on non-accrual status as a percentage of total investments at fair value.
    (4) Portfolio yield is calculated only on the portion of the portfolio that has a contractual coupon and therefore does not account for dividends on equity investments (other than preferred equity investments).

    Financial Review

    The Company’s NII for the quarter ended March 31, 2025 totaled $4.1 million, or $0.19 per share, compared to $6.0 million, or $0.28 per share, for the quarter ended December 31, 2024. Adjusted Net Investment Income was $4.2 million, or $0.19 per share, for the quarter ended March 31, 2025, compared to $6.2 million, or $0.29 per share, for the quarter ended December 31, 2024. Excluding the impact of the incentive fee limitations of $(0.3) million and $(1.2) million for the quarters ended March 31, 2025 and December 31, 2024, respectively, Adjusted Net Investment Income totaled $3.9 million, or $0.18 per share for the quarter ended March 31, 2025, a decrease from $5.0 million, or $0.23 per share for the quarter ended December 31, 2024. Please refer to the Company’s Form 10-Q for additional information on the Company’s incentive fee structure and calculation.

    Total investment income for the quarter ended March 31, 2025 totaled $11.6 million, compared to $14.0 million for the quarter ended December 31, 2024. Total investment income decreased by $2.4 million primarily due to the lower effective yield on the portfolio driven by base rate declines and lower spreads on certain portfolio assets as well as a decrease in average invested assets.

    Total expenses for the quarter ended March 31, 2025 were $7.6 million, compared to $8.0 million for the quarter ended December 31, 2024. Excluding the impact of the incentive fee limitations, total expenses decreased by $1.3 million primarily due to a lower interest rate environment and reduced average debt outstanding.

    Net gain (loss) was $(3.6) million for the quarter ended March 31, 2025, compared to $(7.7) million for the quarter ended December 31, 2024. For the quarter ended March 31, 2025, the net change in unrealized loss on investments was primarily driven by mark-to-market losses from a few specific legacy portfolio companies that continue to be impacted by macroeconomic and idiosyncratic challenges and the Company’s investment in MRCC Senior Loan Fund I, LLC (“SLF”). The decrease in value at SLF was driven by net losses on SLF’s investments, which are loans to traditional upper middle-market borrowers.

    The Company’s average portfolio mark decreased by 1.1%, from 92.2% of amortized cost as of December 31, 2024 to 91.1% of amortized cost as of March 31, 2025.

    Net increase (decrease) in net assets resulting from operations was $0.5 million, or $0.03 per share, for the quarter ended March 31, 2025, compared to $(1.7) million, or $(0.08) per share, for the quarter ended December 31, 2024.

    Liquidity and Capital Resources

    As of March 31, 2025, the Company had $6.5 million in cash and cash equivalents, $141.2 million of debt outstanding on its revolving credit facility and $130.0 million of debt outstanding on its 2026 Notes. As of March 31, 2025, the Company had approximately $113.8 million available for additional borrowings on its revolving credit facility, subject to borrowing base availability.

    MRCC Senior Loan Fund

    SLF is a joint venture with Life Insurance Company of the Southwest (“LSW”), an affiliate of National Life Insurance Company. SLF invests primarily in senior secured loans to middle market companies in the United States. The Company and LSW have each committed $50.0 million of capital to the joint venture. As of March 31, 2025, the Company had made net capital contributions of $42.7 million in SLF with a fair value of $31.9 million, as compared to net capital contributions of $42.7 million in SLF with a fair value of $32.7 million as of December 31, 2024. For the quarter ended March 31, 2025, the Company received dividend income from SLF of $0.9 million, consistent with the $0.9 million received for the quarter ended December 31, 2024. SLF’s underlying investments are loans to middle-market borrowers that are generally larger than the rest of MRCC’s portfolio, which is focused on lower middle-market companies. SLF’s average mark on the underlying investment portfolio decreased during the quarter, from 86.8% of amortized cost as of December 31, 2024, to 82.8% of amortized cost as of March 31, 2025.

    As of March 31, 2025, SLF had total assets of $86.0 million (including investments at fair value of $78.4 million), total liabilities of $22.2 million (including borrowings under the $110.0 million secured revolving credit facility with Capital One, N.A. (the “SLF Credit Facility”) of $21.8 million) and total members’ capital of $63.8 million. As of December 31, 2024, SLF had total assets of $104.2 million (including investments at fair value of $98.0 million), total liabilities of $38.7 million (including borrowings under the SLF Credit Facility of $38.2 million) and total members’ capital of $65.5 million.

    Non-GAAP Financial Measure – Adjusted Net Investment Income

    On a supplemental basis, the Company discloses Adjusted Net Investment Income (including on a per share basis) which is a financial measure that is calculated and presented on a basis of methodology other than in accordance with generally accepted accounting principles of the United States of America (“non-GAAP”). Adjusted Net Investment Income represents NII, excluding the net capital gains incentive fee and income taxes. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company. The management agreement with the Company’s advisor provides that a capital gains incentive fee is determined and paid annually with respect to realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized capital losses for such year. Management believes that Adjusted Net Investment Income is a useful indicator of operations exclusive of any net capital gains incentive fee as NII does not include gains associated with the capital gains incentive fee.

    The following tables provide a reconciliation from NII (the most comparable GAAP measure) to Adjusted Net Investment Income for the periods presented (in thousands, except per share data):

      For the Quarter Ended
      March 31, 2025   December 31, 2024
      Amount   Per Share Amount   Amount   Per Share Amount
      (unaudited)
    Net investment income $ 4,086   $ 0.19   $ 6,022   $ 0.28
    Net capital gains incentive fee   —     —     —     —
    Income taxes, including excise taxes   120     0.00     163     0.01
    Adjusted Net Investment Income $ 4,206   $ 0.19   $ 6,185   $ 0.29
     

    Adjusted Net Investment Income may not be comparable to similar measures presented by other companies, as it is a non-GAAP financial measure that is not based on a comprehensive set of accounting rules or principles and therefore may be defined differently by other companies. In addition, Adjusted Net Investment Income should be considered in addition to, not as a substitute for, or superior to, financial measures determined in accordance with GAAP.

    First Quarter 2025 Financial Results Conference Call

    The Company will host a webcast and conference call to discuss these operating and financial results on Thursday, May 8, 2025 at 11:00 a.m. Eastern Time. The webcast will be hosted on a webcast link located in the Investor Relations section of the Company’s website at http://ir.monroebdc.com/events.cfm. To participate in the conference call, please dial (800) 715-9871 approximately 10 minutes prior to the call. Please reference conference ID # 9094217.

    For those unable to listen to the live broadcast, the webcast will be available for replay on the Company’s website approximately two hours after the event.

    For a more detailed discussion of the financial and other information included in this press release, please also refer to the Company’s Form 10-Q for the quarter ended March 31, 2025, which was filed with the SEC (www.sec.gov) on Wednesday, May 7, 2025.

    MONROE CAPITAL CORPORATION
    CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
    (in thousands, except per share data)
     
      March 31, 2025   December 31, 2024
      (unaudited)   (audited)
    Assets      
    Investments, at fair value:      
    Non-controlled/non-affiliate company investments $ 315,012     $ 343,835  
    Non-controlled affiliate company investments   83,642       80,483  
    Controlled affiliate company investments   31,917       32,730  
    Total investments, at fair value (amortized cost of: $472,436 and $495,797, respectively)   430,571       457,048  
    Cash and cash equivalents   6,463       9,044  
    Interest and dividend receivable   23,309       23,511  
    Other assets   1,175       1,068  
    Total assets $ 461,518     $ 490,671  
    Liabilities      
    Debt $ 271,200     $ 293,900  
    Less: Unamortized debt issuance costs   (2,108)       (1,925)  
    Total debt, less unamortized debt issuance costs   269,092       291,975  
    Interest payable   1,424       2,903  
    Base management fees payable   1,851       1,965  
    Accounts payable and accrued expenses   2,215       2,066  
    Directors’ fees payable   59       —  
    Total liabilities   274,641       298,909  
    Net Assets      
    Common stock, $0.001 par value, 100,000 shares authorized, 21,666 and 21,666 shares issued and outstanding, respectively $ 22     $ 22  
    Capital in excess of par value   297,712       297,712  
    Accumulated undistributed (overdistributed) earnings   (110,857)       (105,972)  
    Total net assets $ 186,877     $ 191,762  
    Total liabilities and total net assets $ 461,518     $ 490,671  
    Net asset value per share $ 8.63     $ 8.85  
     
    MONROE CAPITAL CORPORATION
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except per share data)
     
      For the Quarter Ended
      March 31, 2025   December 31, 2024
      (unaudited)
    Investment income:      
    Non-controlled/non-affiliate company investments:      
    Interest income $ 8,029     $ 8,576  
    Payment-in-kind interest income   1,132       1,379  
    Dividend income   72       237  
    Other income   229       310  
    Total investment income from non-controlled/non-affiliate company investments   9,462       10,502  
    Non-controlled affiliate company investments:      
    Interest income   452       1,300  
    Payment-in-kind interest income   767       1,247  
    Dividend income   57       56  
    Other income   —       18  
    Total investment income from non-controlled affiliate company investments   1,276       2,621  
    Controlled affiliate company investments:      
    Dividend income   900       900  
    Total investment income from controlled affiliate company investments   900       900  
    Total investment income   11,638       14,023  
    Operating expenses:      
    Interest and other debt financing expenses   4,677       5,113  
    Base management fees   1,851       1,965  
    Professional fees   263       196  
    Administrative service fees   353       282  
    General and administrative expenses   226       233  
    Directors’ fees   62       49  
    Total operating expenses   7,432       7,838  
    Net investment income before income taxes   4,206       6,185  
    Income taxes, including excise taxes   120       163  
    Net investment income   4,086       6,022  
    Net gain (loss):      
    Net realized gain (loss):      
    Non-controlled/non-affiliate company investments   (438)       283  
    Net realized gain (loss)   (438)       283  
    Net change in unrealized gain (loss):      
    Non-controlled/non-affiliate company investments   (2,574)       (1,139)  
    Non-controlled affiliate company investments   271       (6,694)  
    Controlled affiliate company investments   (813)       (167)  
    Foreign currency and other transactions   —       (20)  
    Net change in unrealized gain (loss)   (3,116)       (8,020)  
    Net gain (loss)   (3,554)       (7,737)  
    Net increase (decrease) in net assets resulting from operations $ 532     $ (1,715)  
    Per common share data:      
    Net investment income per share – basic and diluted $ 0.19     $ 0.28  
    Net increase (decrease) in net assets resulting from operations per share – basic and diluted $ 0.03     $ (0.08)  
    Weighted average common shares outstanding – basic and diluted   21,666       21,666  
     


    Additional Supplemental Information:

    The composition of the Company’s investment income was as follows (in thousands):

      For the Quarter Ended
      March 31, 2025   December 31, 2024
      (unaudited)
    Interest income $ 7,966   $ 9,468
    Payment-in-kind interest income   1,899     2,626
    Dividend income   1,029     1,193
    Other income   229     328
    Prepayment gain (loss)   245     173
    Accretion of discounts and amortization of premiums   270     235
    Total investment income $ 11,638   $ 14,023
     

    The composition of the Company’s interest expense and other debt financing expenses was as follows (in thousands):

      For the Quarter Ended
      March 31, 2025   December 31, 2024
      (unaudited)
    Interest expense – revolving credit facility $ 2,773   $ 3,227
    Interest expense – 2026 Notes   1,555     1,555
    Amortization of debt issuance costs   349     331
    Total interest and other debt financing expenses $ 4,677   $ 5,113
     


    About Monroe Capital Corporation

    Monroe Capital Corporation is a publicly-traded specialty finance company that principally invests in senior, unitranche and junior secured debt and, to a lesser extent, unsecured debt and equity investments in middle-market companies. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation. The Company’s investment activities are managed by its investment adviser, Monroe Capital BDC Advisors, LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended, and an affiliate of Monroe Capital LLC. To learn more about Monroe Capital Corporation, visit www.monroebdc.com.

    About Monroe Capital LLC

    Monroe Capital LLC (including its subsidiaries and affiliates, together “Monroe”) is a premier asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, alternative credit solutions, structured credit, real estate and equity. Since 2004, the firm has been successfully providing capital solutions to clients in the U.S. and Canada. Monroe prides itself on being a value-added and user-friendly partner to business owners, management, and both private equity and independent sponsors. Monroe’s platform offers a wide variety of investment products for both institutional and high net worth investors with a focus on generating high quality “alpha” returns irrespective of business or economic cycles. The firm is headquartered in Chicago and has 11 locations throughout the United States, Asia and Australia.

    Monroe has been recognized by both its peers and investors with various awards including Private Debt Investor as the 2024 Lower Mid-Market Lender of the Year, Americas and 2023 Lower Mid-Market Lender of the Decade; Inc.’s 2024 Founder-Friendly Investors List; Global M&A Network as the 2023 Lower Mid-Markets Lender of the Year, U.S.A.; DealCatalyst as the 2022 Best CLO Manager of the Year; Korean Economic Daily as the 2022 Best Performance in Private Debt – Mid Cap; Creditflux as the 2021 Best U.S. Direct Lending Fund; and Pension Bridge as the 2020 Private Credit Strategy of the Year. For more information and important disclaimers, please visit www.monroecap.com.

    Forward-Looking Statements

    This press release may contain certain forward-looking statements. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control, and that the Company may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future. Such statements speak only as of the time when made, and the Company undertakes no obligation to update any such statement now or in the future.

    SOURCE: Monroe Capital Corporation

    The MIL Network –

  • MIL-OSI: Magnite Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Contribution ex-TAC(1)Grows 12% Year-Over-Year

    Contribution ex-TAC(1)from CTV Grows 15% Year-Over-Year

    Adjusted EBITDA(1)Grows 47% Year-Over-Year

    NEW YORK, May 07, 2025 (GLOBE NEWSWIRE) — Magnite (NASDAQ: MGNI), the largest independent sell-side advertising company, today reported its results of operations for the quarter ended March 31, 2025.

    Q1 2025 Highlights:

    • Revenue of $155.8 million, up 4% year-over-year
    • Contribution ex-TAC(1) of $145.8 million, up 12% year-over-year
    • Contribution ex-TAC(1) attributable to CTV of $63.2 million, up 15% year-over-year, exceeded guidance of $61.0 to $63.0 million
    • Contribution ex-TAC(1) attributable to DV+ of $82.6 million, up 9% year-over year, exceeded guidance of $79.0 to $81.0 million
    • Net loss of $9.6 million, or $0.07 per share, compared to a net loss of $17.8 million, or $0.13 per share for Q1 2024
    • Adjusted EBITDA(1) of $36.8 million, up 47% year-over-year, representing a 25% Adjusted EBITDA margin(2), compared to Adjusted EBITDA(1) of $25.0 million or a 19% margin in Q1 2024
    • Non-GAAP earnings per share(1) of $0.12, compared to non-GAAP earnings per share(1) of $0.05 for Q1 2024
    • Operating cash flow(3) of $18.2 million

    Expectations:

    • Total Contribution ex-TAC(1) for Q2 2025 to be between $154 million and $160 million
    • Contribution ex-TAC(1) attributable to CTV for Q2 2025 to be between $70 million and $72 million
    • Contribution ex-TAC(1) attributable to DV+ for Q2 2025 to be between $84 million and $88 million
    • Adjusted EBITDA operating expenses(4) for Q2 2025 to be between $110 million and $112 million
    • Performance in Q2 to date has been in line with prior expectations; however, due to tariff-driven economic uncertainty, not reaffirming full-year 2025 expectations

    “We beat the high end of our CTV and DV+ top line guidance in the first quarter, with significant outperformance in Adjusted EBITDA. Our performance has remained strong to start Q2. However, we have taken a more cautious approach to our outlook and guidance due to tariff-driven economic uncertainty. In CTV, we continue to see strong programmatic adoption and are very pleased with the growth of Netflix and their continued rollout of programmatic globally. On the DV+ side of the business, we applaud the monumental antitrust ruling against Google. This ruling and its ensuing remedies have the potential to radically transform the open internet and create a more level playing field, which could significantly increase our monetization opportunities and market share, possibly as soon as next year,” said Michael G. Barrett, CEO of Magnite.

    First quarter 2025 Results Summary        
    (in millions, except per share amounts and percentages)        
      Three Months Ended
      March 31, 2025   March 31, 2024   Change
    Favorable/ (Unfavorable)
    Revenue $155.8   $149.3   4%
    Gross profit $93.0   $83.4   11%
    Contribution ex-TAC(1) $145.8   $130.6   12%
    Net loss ($9.6)   ($17.8)   46%
    Adjusted EBITDA(1) $36.8   $25.0   47%
    Adjusted EBITDA margin(2)   25%   19%   6 ppt
    Basic and diluted net loss per share ($0.07)   ($0.13)   46%
    Non-GAAP earnings per share(1) $0.12   $0.05   140%
    Footnotes:
    (1 ) Contribution ex-TAC, Adjusted EBITDA, and non-GAAP earnings per share are non-GAAP financial measures. Please see the discussion in the section called “Non-GAAP Financial Measures” and the reconciliations included at the end of this press release.
    (2 ) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Contribution ex-TAC.
    (3 ) Operating cash flow is calculated as Adjusted EBITDA less capital expenditures.
    (4 ) Adjusted EBITDA operating expenses is calculated as Contribution ex-TAC less Adjusted EBITDA.

    First quarter 2025 Results Conference Call and Webcast:

    The Company will host a conference call on May 7, 2025 at 1:30 PM (PT) / 4:30 PM (ET) to discuss the results for its first quarter of 2025.

    Live conference call  
    Toll free number: (844) 875-6911 (for domestic callers)
    Direct dial number: (412) 902-6511 (for international callers)
    Passcode: Ask to join the Magnite conference call
    Simultaneous audio webcast: http://investor.magnite.com under “Events and Presentations”
       
    Conference call replay  
    Toll free number: (877) 344-7529 (for domestic callers)
    Direct dial number: (412) 317-0088 (for international callers)
    Passcode: 4251284
    Webcast link: http://investor.magnite.com under “Events and Presentations”

    About Magnite
    We’re Magnite (NASDAQ: MGNI), the world’s largest independent sell-side advertising company. Publishers use our technology to monetize their content across all screens and formats including CTV, online video, display, and audio. The world’s leading agencies and brands trust our platform to access brand-safe, high-quality ad inventory and execute billions of advertising transactions each month. Anchored in bustling New York City, sunny Los Angeles, mile high Denver, historic London, colorful Singapore, and down under in Sydney, Magnite has offices across North America, EMEA, LATAM, and APAC.

    Forward-Looking Statements:

    This press release and management’s prepared remarks during the conference call referred to above include, and management’s answers to questions during the conference call may include, forward-looking statements, including statements based upon or relating to our expectations, assumptions, estimates, and projections. In some cases, you can identify forward-looking statements by terms such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “anticipate,” “estimate,” “predict,” “potential,” “plan” or the negative of these terms, and similar expressions. Forward-looking statements may include, but are not limited to, statements concerning the Company’s guidance or expectations with respect to future financial performance; acquisitions by the Company, or the anticipated benefits thereof; macroeconomic conditions or concerns related thereto; the growth of ad-supported programmatic connected television (“CTV”); our ability to use and collect data to provide our offerings; the scope and duration of client relationships; the fees we may charge in the future; key strategic objectives; anticipated benefits of new offerings; business mix; sales growth; benefits from supply path optimization; our ability to adapt to advancements in artificial intelligence; the development of identity solutions; client utilization of our offerings; the impact of requests for discounts, rebates, or other fee concessions; our competitive differentiation; our market share and leadership position in the industry; market conditions, trends, and opportunities; certain statements regarding future operational performance measures; and other statements that are not historical facts. These statements are not guarantees of future performance; they reflect our current views with respect to future events and are based on assumptions and estimates and subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from expectations or results projected or implied by forward-looking statements.

    We discuss many of these risks and additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in this press release and in other filings we have made and will make from time to time with the Securities and Exchange Commission, or SEC, including our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent filings. These forward-looking statements represent our estimates and assumptions only as of the date of the report in which they are included. Unless required by federal securities laws, we assume no obligation to update any of these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated, to reflect circumstances or events that occur after the statements are made. Without limiting the foregoing, any guidance we may provide will generally be given only in connection with quarterly and annual earnings announcements, without interim updates, and we may appear at industry conferences or make other public statements without disclosing material nonpublic information in our possession. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. Investors should read this press release and the documents that we reference in this press release and have filed or will file with the SEC completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

    Non-GAAP Financial Measures and Operational Measures:

    In addition to our GAAP results, we review certain non-GAAP financial measures to help us evaluate our business on a consistent basis, measure our performance, identify trends affecting our business, establish budgets, measure the effectiveness of investments in our technology and development and sales and marketing, and assess our operational efficiencies. These non-GAAP financial measures include Contribution ex-TAC, Adjusted EBITDA, Non-GAAP Income (Loss), and Non-GAAP Earnings (Loss) per share, each of which is discussed below.

    These non-GAAP financial measures are not intended to be considered in isolation from, as substitutes for, or as superior to, the corresponding financial measures prepared in accordance with GAAP. You are encouraged to evaluate these adjustments, and review the reconciliation of these non-GAAP financial measures to their most comparable GAAP measures, and the reasons we consider them appropriate. It is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies. See “Reconciliation of Revenue to Gross Profit to Contribution ex-TAC,” “Reconciliation of net loss to Adjusted EBITDA,” “Reconciliation of net loss to non-GAAP income,” and “Reconciliation of GAAP loss per share to non-GAAP earnings per share” included as part of this press release.

    We do not provide a reconciliation of our non-GAAP financial expectations for Contribution ex-TAC and Adjusted EBITDA, or a forecast of the most comparable GAAP measures, because the amount and timing of many future charges that impact these measures (such as amortization of future acquired intangible assets, acquisition-related charges, foreign exchange (gain) loss, net, stock-based compensation, impairment charges, provision or benefit for income taxes, and our future revenue mix), which could be material, are variable, uncertain, or out of our control and therefore cannot be reasonably predicted without unreasonable effort, if at all. In addition, we believe such reconciliations or forecasts could imply a degree of precision that might be confusing or misleading to investors.

    Contribution ex-TAC:

    Contribution ex-TAC is calculated as gross profit plus cost of revenue, excluding traffic acquisition cost (“TAC”). Traffic acquisition cost, a component of cost of revenue, represents what we must pay sellers for the sale of advertising inventory through our platform for revenue reported on a gross basis. Contribution ex-TAC is a non-GAAP financial measure that is most comparable to gross profit. We believe Contribution ex-TAC is a useful measure in facilitating a consistent comparison against our core business without considering the impact of traffic acquisition costs related to revenue reported on a gross basis.

    Adjusted EBITDA:

    We define Adjusted EBITDA as net income (loss) adjusted to exclude stock-based compensation expense, depreciation and amortization, amortization of acquired intangible assets, impairment charges, interest income or expense, and other cash and non-cash based income or expenses that we do not consider indicative of our core operating performance, including, but not limited to foreign exchange gains and losses, acquisition and related items, gains or losses on extinguishment of debt, other debt refinancing expenses, non-operational real estate and other expenses (income), net, and provision (benefit) for income taxes. We also track future expenses on an Adjusted EBITDA basis, and describe them as Adjusted EBITDA operating expenses, which includes total operating expenses. Total operating expenses include cost of revenue. Adjusted EBITDA operating expenses is calculated as Contribution ex-TAC less Adjusted EBITDA. We adjust Adjusted EBITDA operating expenses for the same expense items excluded in Adjusted EBITDA. We believe Adjusted EBITDA is useful to investors in evaluating our performance for the following reasons:

    • Adjusted EBITDA is widely used by investors and securities analysts to measure a company’s performance without regard to items such as those we exclude in calculating this measure, which can vary substantially from company to company depending upon their financing, capital structures, and the method by which assets were acquired.
    • Our management uses Adjusted EBITDA in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of performance and the effectiveness of our business strategies, and in communications with our board of directors concerning our performance. Adjusted EBITDA is also used as a metric for determining payment of cash incentive compensation.
    • Adjusted EBITDA provides a measure of consistency and comparability with our past performance that many investors find useful, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.

    Although Adjusted EBITDA is frequently used by investors and securities analysts in their evaluations of companies, Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results of operations as reported under GAAP. These limitations include:

    • Stock-based compensation is a non-cash charge and will remain an element of our long-term incentive compensation package, although we exclude it as an expense when evaluating our ongoing operating performance for a particular period.
    • Depreciation and amortization are non-cash charges, and the assets being depreciated or amortized will often have to be replaced in the future, but Adjusted EBITDA does not reflect any cash requirements for these replacements.
    • Impairment charges are non-cash charges related to goodwill, intangible assets and/or long-lived assets.
    • Adjusted EBITDA does not reflect certain cash and non-cash charges related to acquisition and related items, such as amortization of acquired intangible assets, merger, acquisition, or restructuring related severance costs, and changes in the fair value of contingent consideration.
    • Adjusted EBITDA does not reflect cash and non-cash charges and changes in, or cash requirements for, acquisition and related items, such as certain transaction expenses.
    • Adjusted EBITDA does not reflect cash and non-cash charges related to certain financing transactions such as gains or losses on extinguishment of debt or other debt refinancing expenses.
    • Adjusted EBITDA does not reflect certain non-operational real estate and other (income) and expense, net, which consists of transactions or expenses that are typically by nature non-operating, one-time items, or unrelated to our core operations.
    • Adjusted EBITDA does not reflect changes in our working capital needs, capital expenditures, or contractual commitments.
    • Adjusted EBITDA does not reflect cash requirements for income taxes and the cash impact of other income or expense.
    • Other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

    Our Adjusted EBITDA is influenced by fluctuations in our revenue, cost of revenue, and the timing and amounts of the cost of our operations. Adjusted EBITDA should not be considered as an alternative to net income (loss), income (loss) from operations, or any other measure of financial performance calculated and presented in accordance with GAAP.

    Non-GAAP Income (Loss) and Non-GAAP Earnings (Loss) per Share:

    We define non-GAAP earnings (loss) per share as non-GAAP income (loss) divided by non-GAAP weighted-average shares outstanding. Non-GAAP income (loss) is equal to net income (loss) excluding stock-based compensation, cash and non-cash based merger, acquisition, and restructuring costs, which consist primarily of professional service fees associated with merger and acquisition activities, cash-based employee termination costs, and other restructuring activities, including facility closures, relocation costs, contract termination costs, and impairment costs of abandoned technology associated with restructuring activities, amortization of acquired intangible assets, gains or losses on extinguishment of debt, non-operational real estate and other expenses or income, foreign currency gains and losses, interest expense associated with Convertible Senior Notes, other debt refinance expenses, and the tax impact of these items. In periods in which we have non-GAAP income, non-GAAP weighted-average shares outstanding used to calculate non-GAAP earnings per share includes the impact of potentially dilutive shares. Potentially dilutive shares consist of stock options, restricted stock units, performance stock units, and potential shares issued under the Employee Stock Purchase Plan, each computed using the treasury stock method, and the impact of shares that would be issuable assuming conversion of all of the Convertible Senior Notes, calculated under the if-converted method. We believe non-GAAP earnings (loss) per share is useful to investors in evaluating our ongoing operational performance and our trends on a per share basis, and also facilitates comparison of our financial results on a per share basis with other companies, many of which present a similar non-GAAP measure. However, a potential limitation of our use of non-GAAP earnings (loss) per share is that other companies may define non-GAAP earnings (loss) per share differently, which may make comparison difficult. This measure may also exclude expenses that may have a material impact on our reported financial results. Non-GAAP earnings (loss) per share is a performance measure and should not be used as a measure of liquidity. Because of these limitations, we also consider the comparable GAAP measure of net income (loss).

    Investor Relations Contact
    Nick Kormeluk
    (949) 500-0003
    nkormeluk@magnite.com

    Media Contact
    Charlstie Veith
    (516) 300-3569
    press@magnite.com

    MAGNITE, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (unaudited)
           
      March 31, 2025   December 31, 2024
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 429,708     $ 483,220  
    Accounts receivable, net   1,053,153       1,200,046  
    Prepaid expenses and other current assets   32,207       19,914  
    TOTAL CURRENT ASSETS   1,515,068       1,703,180  
    Property and equipment, net   79,134       68,730  
    Right-of-use lease assets   55,752       50,329  
    Internal use software development costs, net   26,689       26,625  
    Intangible assets, net   13,926       21,309  
    Goodwill   978,217       978,217  
    Other assets, non-current   5,864       6,378  
    TOTAL ASSETS $ 2,674,650     $ 2,854,768  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable and accrued expenses $ 1,306,517     $ 1,466,377  
    Lease liabilities, current   16,229       16,086  
    Debt, current, net of debt issuance costs   207,568       3,641  
    Other current liabilities   8,173       9,880  
    TOTAL CURRENT LIABILITIES   1,538,487       1,495,984  
    Debt, non-current, net of debt discount and debt issuance costs   349,001       550,104  
    Lease liabilities, non-current   43,759       38,983  
    Other liabilities, non-current   1,650       1,479  
    TOTAL LIABILITIES   1,932,897       2,086,550  
    STOCKHOLDERS’ EQUITY      
    Common stock   2       2  
    Additional paid-in capital   1,416,149       1,433,809  
    Accumulated other comprehensive loss   (3,592 )     (4,421 )
    Accumulated deficit   (670,806 )     (661,172 )
    TOTAL STOCKHOLDERS’ EQUITY   741,753       768,218  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 2,674,650     $ 2,854,768  
    MAGNITE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share amounts)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    Revenue $ 155,771     $ 149,319  
    Expenses (1)(2):      
    Cost of revenue   62,799       65,902  
    Sales and marketing   48,106       43,689  
    Technology and development   22,292       26,891  
    General and administrative   23,938       26,665  
    Total expenses   157,135       163,147  
    Loss from operations   (1,364 )     (13,828 )
    Other (income) expense:      
    Interest expense, net   5,177       7,958  
    Foreign exchange (gain) loss, net   2,217       (2,315 )
    Loss on extinguishment of debt   2,152       7,387  
    Other income   (423 )     (1,292 )
    Total other expense, net   9,123       11,738  
    Loss before income taxes   (10,487 )     (25,566 )
    Benefit for income taxes   (853 )     (7,809 )
    Net Loss $ (9,634 )   $ (17,757 )
    Net loss per share:      
    Basic and diluted $ (0.07 )   $ (0.13 )
    Weighted average shares used to compute net loss per share:      
    Basic and diluted   141,852       139,297  
    (1) Stock-based compensation expense included in our expenses was as follows:
      Three Months Ended
    March 31, 2025   March 31, 2024
    Cost of revenue $ 572   $ 500
    Sales and marketing   9,144     8,236
    Technology and development   4,635     5,416
    General and administrative   6,858     6,679
    Total stock-based compensation expense $ 21,209   $ 20,831
    (2) Depreciation and amortization expense included in our expenses was as follows:
      Three Months Ended
      March 31, 2025   March 31, 2024
    Cost of revenue $ 13,025   $ 10,716
    Sales and marketing   2,448     2,610
    Technology and development   69     147
    General and administrative   59     94
    Total depreciation and amortization expense $ 15,601   $ 13,567
    MAGNITE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    OPERATING ACTIVITIES:      
    Net loss $ (9,634 )   $ (17,757 )
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
    Depreciation and amortization   15,601       13,567  
    Stock-based compensation   21,209       20,831  
    Loss on extinguishment of debt   2,152       7,387  
    Amortization of debt discount and issuance costs   967       1,152  
    Non-cash lease expense   (516 )     (546 )
    Deferred income taxes   154       (7,770 )
    Unrealized foreign currency (gain) loss, net   4,496       (3,910 )
    Other items, net   (101 )     124  
    Changes in operating assets and liabilities:      
    Accounts receivable   147,859       175,313  
    Prepaid expenses and other assets   (11,469 )     (812 )
    Accounts payable and accrued expenses   (166,353 )     (249,742 )
    Other liabilities   (1,804 )     1,752  
    Net cash provided by (used in) operating activities   2,561       (60,411 )
    INVESTING ACTIVITIES:      
    Purchases of property and equipment   (14,377 )     (5,873 )
    Capitalized internal use software development costs   (2,821 )     (3,379 )
    Net cash used in investing activities   (17,198 )     (9,252 )
    FINANCING ACTIVITIES:      
    Proceeds from the Term Loan B Facility refinancing and repricing activities, net of debt discount   92,622       361,350  
    Repayment of the Term Loan B Facility from refinancing and repricing activities   (92,622 )     (351,000 )
    Payment for debt issuance costs   (159 )     (4,510 )
    Proceeds from exercise of stock options   252       —  
    Purchase of treasury stock   (19,229 )     —  
    Taxes paid related to net share settlement   (20,314 )     (8,941 )
    Net cash used in financing activities   (39,450 )     (3,101 )
    EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH   575       (621 )
    CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH   (53,512 )     (73,385 )
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period   483,220       326,219  
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period $ 429,708     $ 252,834  
    MAGNITE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-(Continued)
    (In thousands)
    (unaudited)
       
      Three Months Ended
    SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: March 31, 2025   March 31, 2024
    Cash paid for income taxes $ 571   $ 729
    Cash paid for interest $ 6,679   $ 7,182
    Capitalized assets financed by accounts payable and accrued expenses and other liabilities $ 8,133   $ 7,272
    Capitalized stock-based compensation $ 422   $ 576
    Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 11,692   $ 8,255
    Operating lease right-of-use assets reduction and corresponding non-cash adjustment to operating lease liabilities $ 2,047   $ —
    Non-cash financing activity related to Amendment No. 2 to the 2024 Credit Agreement $ 270,555   $ —
    MAGNITE, INC.
    RECONCILIATION OF REVENUE TO GROSS PROFIT TO CONTRIBUTION EX-TAC
    (In thousands)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    Revenue $ 155,771   $ 149,319
    Less: Cost of revenue   62,799     65,902
    Gross Profit   92,972     83,417
    Add back: Cost of revenue, excluding TAC   52,876     47,136
    Contribution ex-TAC $ 145,848   $ 130,553
    MAGNITE, INC.
    RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
    (In thousands)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    Net loss $ (9,634 )   $ (17,757 )
    Add back (deduct):      
    Depreciation and amortization expense, excluding amortization of acquired intangible assets   8,218       5,978  
    Amortization of acquired intangibles   7,383       7,589  
    Stock-based compensation expense   21,209       20,831  
    Non-operational real estate and other (income) expense, net   (36 )     24  
    Interest expense, net   5,177       7,958  
    Foreign exchange (gain) loss, net   2,217       (2,315 )
    Loss on extinguishment of debt   2,152       7,387  
    Other debt refinancing expense   967       3,140  
    Benefit for income taxes   (853 )     (7,809 )
    Adjusted EBITDA $ 36,800     $ 25,026  
    MAGNITE, INC.
    RECONCILIATION OF NET LOSS TO NON-GAAP INCOME
    (In thousands)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    Net loss $ (9,634 )   $ (17,757 )
    Add back (deduct):      
    Merger, acquisition, and restructuring costs, including amortization of acquired intangibles and excluding stock-based compensation expense   7,383       7,589  
    Stock-based compensation expense   21,209       20,831  
    Non-operational real estate and other (income) expense, net   (36 )     24  
    Foreign exchange (gain) loss, net   2,217       (2,315 )
    Interest expense, Convertible Senior Notes   421       421  
    Loss on extinguishment of debt   2,152       7,387  
    Other debt refinancing expense   967       3,140  
    Tax effect of Non-GAAP adjustments (1)   (6,822 )     (11,336 )
    Non-GAAP income $ 17,857     $ 7,984  
            (1 ) Non-GAAP income includes the estimated tax impact from the reconciling items between net loss and non-GAAP income. 
    MAGNITE, INC.
    RECONCILIATION OF GAAP LOSS PER SHARE TO NON-GAAP EARNINGS PER SHARE
    (In thousands, except per share amounts)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    GAAP net loss per share (1):      
    Basic and diluted $ (0.07 )   $ (0.13 )
           
    Non-GAAP income (2) $ 17,857     $ 7,984  
    Non-GAAP earnings per share $ 0.12     $ 0.05  
           
    Reconciliation of weighted-average shares used to compute net loss per share to non-GAAP weighted average shares outstanding:      
    Weighted-average shares used to compute basic net loss per share   141,852       139,297  
    Dilutive effect of weighted-average common stock options, RSUs, and PSUs   8,191       4,371  
    Dilutive effect of weighted-average ESPP shares   65       65  
    Dilutive effect of weighted-average Convertible Senior Notes   3,210       3,210  
    Non-GAAP weighted-average shares outstanding   153,318       146,943  
           
    (1) Calculated as net loss divided by basic and diluted weighted-average shares used to compute net loss per share as included in the condensed consolidated statement of operations.
    (2) Refer to reconciliation of net loss to non-GAAP income.
    MAGNITE, INC.
    CONTRIBUTION EX-TAC BY CHANNEL
    (In thousands)
    (unaudited)
       
      Contribution ex-TAC
      Three Months Ended
      March 31, 2025   March 31, 2024
    Channel:              
    CTV $ 63,225   43 %   $ 54,894   42 %
    Mobile   58,008   40 %     53,299   41 %
    Desktop   24,615   17 %     22,360   17 %
    Total $ 145,848   100 %   $ 130,553   100 %

    The MIL Network –

  • MIL-OSI: red violet Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    BOCA RATON, Fla., May 07, 2025 (GLOBE NEWSWIRE) — Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the quarter ended March 31, 2025.

    “We are extremely pleased to report another record-setting quarter, marking a strong start to 2025,” stated Derek Dubner, red violet’s CEO. “Our team continues to execute, achieving new highs across key financial metrics and underscoring the leverage and durability of our business model. We have generated meaningful momentum and are energized by the opportunities ahead to build on this success throughout the year.”

    First Quarter Financial Results

    For the three months ended March 31, 2025 as compared to the three months ended March 31, 2024:

    • Total revenue increased 26% to $22.0 million.
    • Gross profit increased 37% to $15.8 million. Gross margin increased to 72% from 66%.
    • Adjusted gross profit increased 33% to $18.3 million. Adjusted gross margin increased to 83% from 79%.
    • Net income increased 93% to $3.4 million, which resulted in earnings of $0.25 and $0.24 per basic and diluted share, respectively. Net income margin increased to 16% from 10%.
    • Adjusted EBITDA increased 47% to $8.4 million. Adjusted EBITDA margin increased to 38% from 32%.
    • Adjusted net income increased 53% to $4.8 million, which resulted in adjusted earnings of $0.35 and $0.33 per basic and diluted share, respectively.
    • Net cash provided by operating activities increased 16% to $5.0 million.
    • Cash and cash equivalents were $34.6 million as of March 31, 2025.

    First Quarter and Recent Business Highlights

    • Added 315 customers to IDI™ during the first quarter, ending the quarter with 9,241 customers.
    • Added 21,918 users to FOREWARN® during the first quarter, ending the quarter with 325,336 users. Over 545 REALTOR® Associations throughout the U.S. are now contracted to use FOREWARN.
    • Paid out a special cash dividend of $0.30 per share on the Company’s common stock to shareholders of record as of January 31, 2025. The dividend, totaling $4.2 million, was paid on February 14, 2025.

    Conference Call

    In conjunction with this release, red violet will host a conference call and webcast today at 4:30pm ET to discuss its quarterly results and provide a business update. Please click here to pre-register for the conference call and obtain your dial in number and passcode. To access the live audio webcast, visit the Investors section of the red violet website at www.redviolet.com. Please login at least 15 minutes prior to the start of the call to ensure adequate time for any downloads that may be required. Following the completion of the conference call, an archived webcast of the conference call will be available on the Investors section of the red violet website at www.redviolet.com.

    About red violet®

    At red violet, we build proprietary technologies and apply analytical capabilities to deliver identity intelligence. Our technology powers critical solutions, which empower organizations to operate with confidence. Our solutions enable the real-time identification and location of people, businesses, assets and their interrelationships. These solutions are used for purposes including identity verification, risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. Our intelligent platform, CORE™, is purpose-built for the enterprise, yet flexible enough for organizations of all sizes, bringing clarity to massive datasets by transforming data into intelligence. Our solutions are used today to enable frictionless commerce, to ensure safety, and to reduce fraud and the concomitant expense borne by society. For more information, please visit www.redviolet.com.

    Company Contact:
    Camilo Ramirez
    Red Violet, Inc.
    561-757-4500
    ir@redviolet.com

    Investor Relations Contact:
    Steven Hooser
    Three Part Advisors
    214-872-2710
    ir@redviolet.com

    Use of Non-GAAP Financial Measures

    Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP metrics of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and free cash flow (“FCF”). Adjusted EBITDA is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on US GAAP, excluding interest income, income tax expense, depreciation and amortization, share-based compensation expense, litigation costs, and write-off of long-lived assets and others. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. Adjusted net income is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on US GAAP, adjusted to exclude share-based compensation expense and amortization of share-based compensation capitalized in intangible assets, and to include the tax effect of adjustments. We define adjusted earnings per share as adjusted net income divided by the weighted average shares outstanding. We define adjusted gross profit as gross profit plus depreciation and amortization of certain intangible assets, and adjusted gross margin as adjusted gross profit as a percentage of revenue. We define FCF as net cash provided by operating activities reduced by purchase of property and equipment, and capitalized costs included in intangible assets.

    FORWARD-LOOKING STATEMENTS

    This press release contains “forward-looking statements,” as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as “expects,” “plans,” “projects,” “will,” “may,” “anticipate,” “believes,” “should,” “intends,” “estimates,” and other words of similar meaning. Such forward looking statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control and which may cause results to differ materially from expectations, including whether our strong start to 2025 and the meaningful momentum and opportunities that have been generated will allow us to build on that success throughout the year. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release and are advised to consider the factors listed above together with the additional factors under the heading “Forward-Looking Statements” and “Risk Factors” in red violet’s Form 10-K for the year ended December 31, 2024, filed on February 27, 2025, as may be supplemented or amended by the Company’s other SEC filings. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

    RED VIOLET, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Amounts in thousands, except share data)
    (unaudited)

        March 31, 2025     December 31, 2024  
    ASSETS:                
    Current assets:                
    Cash and cash equivalents   $ 34,603     $ 36,504  
    Accounts receivable, net of allowance for doubtful accounts of $166 and $188 as of
    March 31, 2025 and December 31, 2024, respectively    		     9,646       8,061  
    Prepaid expenses and other current assets     1,653       1,627  
    Total current assets     45,902       46,192  
    Property and equipment, net     543       545  
    Intangible assets, net     37,488       35,997  
    Goodwill     5,227       5,227  
    Right-of-use assets     1,753       1,901  
    Deferred tax assets     6,597       7,496  
    Other noncurrent assets     1,579       1,173  
    Total assets   $ 99,089     $ 98,531  
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                
    Current liabilities:                
    Accounts payable   $ 2,013     $ 2,127  
    Accrued expenses and other current liabilities     1,989       2,881  
    Current portion of operating lease liabilities     343       406  
    Deferred revenue     754       712  
    Dividend payable     –       4,181  
    Total current liabilities     5,099       10,307  
    Noncurrent operating lease liabilities     1,502       1,592  
    Other noncurrent liabilities     640       –  
    Total liabilities     7,241       11,899  
    Shareholders’ equity:                
    Preferred stock—$0.001 par value, 10,000,000 shares authorized, and 0 shares
    issued and outstanding, as of March 31, 2025 and December 31, 2024    		     –       –  
    Common stock—$0.001 par value, 200,000,000 shares authorized, 13,950,797 and
    13,936,329 shares issued and outstanding, as of March 31, 2025 and
    December 31, 2024    		     14       14  
    Additional paid-in capital     89,264       87,488  
    Retained earnings (accumulated deficit)     2,570       (870 )
    Total shareholders’ equity     91,848       86,632  
    Total liabilities and shareholders’ equity   $ 99,089     $ 98,531  
     

    RED VIOLET, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Amounts in thousands, except share data)
    (unaudited)

        Three Months Ended March 31,  
        2025     2024  
    Revenue   $ 22,003     $ 17,511  
    Costs and expenses(1):                
    Cost of revenue (exclusive of depreciation and amortization)     3,661       3,756  
    Sales and marketing expenses     5,407       3,712  
    General and administrative expenses     6,174       5,790  
    Depreciation and amortization     2,550       2,270  
    Total costs and expenses     17,792       15,528  
    Income from operations     4,211       1,983  
    Interest income     308       365  
    Income before income taxes     4,519       2,348  
    Income tax expense     1,079       564  
    Net income   $ 3,440     $ 1,784  
    Earnings per share:                
    Basic   $ 0.25     $ 0.13  
    Diluted   $ 0.24     $ 0.13  
    Weighted average shares outstanding:                
    Basic     13,998,028       13,997,064  
    Diluted     14,491,713       14,164,506  
                     
                     
    (1) Share-based compensation expense in each category:                
    Sales and marketing expenses   $ 195     $ 138  
    General and administrative expenses     1,401       1,264  
    Total   $ 1,596     $ 1,402  
     

    RED VIOLET, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Amounts in thousands)
    (unaudited)

        Three Months Ended March 31,  
        2025     2024  
    CASH FLOWS FROM OPERATING ACTIVITIES:                
    Net income   $ 3,440     $ 1,784  
    Adjustments to reconcile net income to net cash provided by operating activities:                
    Depreciation and amortization     2,550       2,270  
    Share-based compensation expense     1,596       1,402  
    Write-off of long-lived assets     2       –  
    Provision for bad debts     62       70  
    Noncash lease expenses     148       134  
    Deferred income tax expense     899       471  
    Changes in assets and liabilities:                
    Accounts receivable     (1,647 )     (806 )
    Prepaid expenses and other current assets     (26 )     (378 )
    Other noncurrent assets     (406 )     156  
    Accounts payable     (114 )     722  
    Accrued expenses and other current liabilities     (1,392 )     (1,347 )
    Deferred revenue     42       (38 )
    Operating lease liabilities     (153 )     (135 )
    Net cash provided by operating activities     5,001       4,305  
    CASH FLOWS FROM INVESTING ACTIVITIES:                
    Purchase of property and equipment     (50 )     (65 )
    Capitalized costs included in intangible assets     (2,469 )     (2,327 )
    Net cash used in investing activities     (2,519 )     (2,392 )
    CASH FLOWS FROM FINANCING ACTIVITIES:                
    Taxes paid related to net share settlement of vesting of restricted stock units     (202 )     (383 )
    Repurchases of common stock     –       (1,415 )
    Dividend payable     (4,181 )     –  
    Net cash used in financing activities     (4,383 )     (1,798 )
    Net (decrease) increase in cash and cash equivalents   $ (1,901 )   $ 115  
    Cash and cash equivalents at beginning of period     36,504       32,032  
    Cash and cash equivalents at end of period   $ 34,603     $ 32,147  
    SUPPLEMENTAL DISCLOSURE INFORMATION:                
    Cash paid for interest   $ –     $ –  
    Cash paid for income taxes   $ –     $ –  
    Share-based compensation capitalized in intangible assets   $ 382     $ 446  
    Retirement of treasury stock   $ 202     $ 1,942  

    Use and Reconciliation of Non-GAAP Financial Measures

    Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP metrics of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF. Adjusted EBITDA is a financial measure equal to net income, the most directly comparable financial measure based on GAAP, excluding interest income, income tax expense, depreciation and amortization, share-based compensation expense, litigation costs, and write-off of long-lived assets and others. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. Adjusted net income is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on US GAAP, adjusted to exclude share-based compensation expense and amortization of share-based compensation capitalized in intangible assets, and to include the tax effect of adjustments. We define adjusted earnings per share as adjusted net income divided by the weighted average shares outstanding. We define adjusted gross profit as gross profit plus depreciation and amortization of certain intangible assets, and adjusted gross margin as adjusted gross profit as a percentage of revenue. We define FCF as net cash provided by operating activities reduced by purchase of property and equipment, and capitalized costs included in intangible assets.

    The following is a reconciliation of net income, the most directly comparable US GAAP financial measure, to adjusted EBITDA:

        Three Months Ended March 31,  
    (Dollars in thousands)   2025     2024  
    Net income   $ 3,440     $ 1,784  
    Interest income     (308 )     (365 )
    Income tax expense     1,079       564  
    Depreciation and amortization     2,550       2,270  
    Share-based compensation expense     1,596       1,402  
    Litigation costs     9       27  
    Write-off of long-lived assets and others     2       7  
    Adjusted EBITDA   $ 8,368     $ 5,689  
    Revenue   $ 22,003     $ 17,511  
                     
    Net income margin     16 %     10 %
    Adjusted EBITDA margin     38 %     32 %

    The following is a reconciliation of net income, the most directly comparable US GAAP financial measure, to adjusted net income:

        Three Months Ended March 31,  
    (Dollars in thousands, except share data)   2025     2024  
    Net income   $ 3,440     $ 1,784  
    Share-based compensation expense     1,596       1,402  
    Amortization of share-based compensation
    capitalized in intangible assets    		     409       275  
    Tax effect of adjustments(1)     (613 )     (308 )
    Adjusted net income   $ 4,832     $ 3,153  
    Earnings per share:                
    Basic   $ 0.25     $ 0.13  
    Diluted   $ 0.24     $ 0.13  
    Adjusted earnings per share:                
    Basic   $ 0.35     $ 0.23  
    Diluted   $ 0.33     $ 0.22  
    Weighted average shares outstanding:                
    Basic     13,998,028       13,997,064  
    Diluted     14,491,713       14,164,506  

    (1) The tax effect of adjustments is calculated using the expected federal and state statutory tax rate. The expected federal and state income tax rate was approximately 26.00% and 25.75% for the three months ended March 31, 2025 and 2024, respectively.

    The following is a reconciliation of gross profit, the most directly comparable US GAAP financial measure, to adjusted gross profit:

        Three Months Ended March 31,  
    (Dollars in thousands)   2025     2024  
    Revenue   $ 22,003     $ 17,511  
    Cost of revenue (exclusive of depreciation and amortization)     (3,661 )     (3,756 )
    Depreciation and amortization related to cost of revenue     (2,500 )     (2,214 )
    Gross profit     15,842       11,541  
    Depreciation and amortization of certain intangible assets(1)     2,452       2,214  
    Adjusted gross profit   $ 18,294     $ 13,755  
                     
    Gross margin     72 %     66 %
    Adjusted gross margin     83 %     79 %

    (1) Depreciation and amortization of certain intangible assets primarily consists of the amortization of capitalized internal-use software development costs, which are included within intangible assets and amortized over their estimated useful lives.

    The following is a reconciliation of net cash provided by operating activities, the most directly comparable US GAAP financial measure, to FCF:

        Three Months Ended March 31,  
    (Dollars in thousands)   2025     2024  
    Net cash provided by operating activities   $ 5,001     $ 4,305  
    Less:                
    Purchase of property and equipment     (50 )     (65 )
    Capitalized costs included in intangible assets     (2,469 )     (2,327 )
    Free cash flow   $ 2,482     $ 1,913  

    In order to assist readers of our consolidated financial statements in understanding the operating results that management uses to evaluate the business and for financial planning purposes, we present non-GAAP measures of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF as supplemental measures of our operating performance. We believe they provide useful information to our investors as they eliminate the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance. In addition, we use them as an integral part of our internal reporting to measure the performance and operating strength of our business.

    We believe adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF are relevant and provide useful information frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies similar to ours and are indicators of the operational strength of our business. We believe adjusted EBITDA eliminates the uneven effect of considerable amounts of non-cash depreciation and amortization, share-based compensation expense and the impact of other non-recurring items, providing useful comparisons versus prior periods or forecasts. Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of revenue. We believe adjusted net income provides additional means of evaluating period-over-period operating performance by eliminating certain non-cash expenses and other items that might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. Adjusted net income is a non-GAAP financial measure equal to net income, adjusted to exclude share-based compensation expense and amortization of share-based compensation capitalized in intangible assets, and to include the tax effect of adjustments. We define adjusted earnings per share as adjusted net income divided by the weighted average shares outstanding. Our adjusted gross profit is a measure used by management in evaluating the business’s current operating performance by excluding the impact of prior historical costs of assets that are expensed systematically and allocated over the estimated useful lives of the assets, which may not be indicative of the current operating activity. We define adjusted gross profit as gross profit plus depreciation and amortization of certain intangible assets. We believe adjusted gross profit provides useful information to our investors by eliminating the impact of certain non-cash depreciation and amortization, and primarily the amortization of software developed for internal use, providing a baseline of our core operating results that allow for analyzing trends in our underlying business consistently over multiple periods. Adjusted gross margin is calculated as adjusted gross profit as a percentage of revenue. We believe FCF is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses and investment in our business. FCF is a measure used by management to understand and evaluate the business’s operating performance and trends over time. FCF is calculated by using net cash provided by operating activities, less purchase of property and equipment, and capitalized costs included in intangible assets.

    Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF are not intended to be performance measures that should be regarded as an alternative to, or more meaningful than, financial measures presented in accordance with US GAAP. In addition, FCF is not intended to represent our residual cash flow available for discretionary expenses and is not necessarily a measure of our ability to fund our cash needs. The way we measure adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF may not be comparable to similarly titled measures presented by other companies, and may not be identical to corresponding measures used in our various agreements.

    SUPPLEMENTAL METRICS

    The following metrics are intended as a supplement to the financial statements found in this release and other information furnished or filed with the SEC. These supplemental metrics are not necessarily derived from any underlying financial statement amounts. We believe these supplemental metrics help investors understand trends within our business and evaluate the performance of such trends quickly and effectively. In the event of discrepancies between amounts in these tables and the Company’s historical disclosures or financial statements, readers should rely on the Company’s filings with the SEC and financial statements in the Company’s most recent earnings release.

    We intend to periodically review and refine the definition, methodology and appropriateness of each of these supplemental metrics. As a result, metrics are subject to removal and/or changes, and such changes could be material.

      (Unaudited)  
    (Dollars in thousands)   Q2’23     Q3’23     Q4’23     Q1’24     Q2’24     Q3’24     Q4’24     Q1’25  
    Customer metrics                                                                
    IDI – billable customers(1)     7,497       7,769       7,875       8,241       8,477       8,743       8,926       9,241  
    FOREWARN – users(2)     146,537       168,356       185,380       236,639       263,876       284,967       303,418       325,336  
    Revenue metrics                                                                
    Contractual revenue %(3)     79 %     79 %     82 %     78 %     74 %     77 %     77 %     74 %
    Gross revenue retention %(4)     94 %     94 %     92 %     93 %     94 %     94 %     96 %     96 %
    Other metrics                                                                
    Employees – sales and marketing   63     65     71     76     86     93     95     90  
    Employees – support   9     9     9     10     10     11     11     11  
    Employees – infrastructure   26     27     27     29     27     29     28     29  
    Employees – engineering   47     47     51     51     56     58     57     62  
    Employees – administration   25     25     25     25     25     26     25     24  

    (1) We define a billable customer of IDI as a single entity that generated revenue in the last three months of the period. Billable customers are typically corporate organizations. In most cases, corporate organizations will have multiple users and/or departments purchasing our solutions, however, we count the entire organization as a discrete customer.

    (2) We define a user of FOREWARN as a unique person that has a subscription to use the FOREWARN service as of the last day of the period. A unique person can only have one user account.

    (3) Contractual revenue % represents revenue generated from customers pursuant to pricing contracts containing a monthly fee and any additional overage divided by total revenue. Pricing contracts are generally annual contracts or longer, with auto renewal.

    (4) Gross revenue retention is defined as the revenue retained from existing customers, net of reinstated revenue, and excluding expansion revenue. Revenue is measured once a customer has generated revenue for six consecutive months. Revenue is considered lost when all revenue from a customer ceases for three consecutive months; revenue generated by a customer after the three-month loss period is defined as reinstated revenue. Gross revenue retention percentage is calculated on a trailing twelve-month basis. The numerator of which is revenue lost during the period due to attrition, net of reinstated revenue, and the denominator of which is total revenue based on an average of total revenue at the beginning of each month during the period, with the quotient subtracted from one. Our gross revenue retention calculation excludes revenue from idiVERIFIED, which is purely transactional and currently represents less than 3% of total revenue.

    The MIL Network –

  • MIL-OSI: H&R Block Reports Fiscal 2025 Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    — Delivered Revenue Growth of 4%, Net Income Growth of 5%, and EPS Growth of 9% —

    — Improved Volume and Market Share Trends in Assisted Channel Through April 30 —

    — Reaffirms Full Year 2025 Outlook —

    KANSAS CITY, Mo., May 07, 2025 (GLOBE NEWSWIRE) — H&R Block, Inc. (NYSE: HRB) (the “Company”) today released financial results1 for its fiscal 2025 third quarter ended March 31, 2025.

    “Today we are reaffirming our FY25 outlook,” said Jeff Jones, president and chief executive officer. “Our transformation continues to gather momentum and deliver results. We meaningfully enhanced the new client experience this season, driving higher client satisfaction scores and improving volume and market share trends in the Assisted channel.”

    Fiscal 2025 Third Quarter Results and Key Financial Metrics

    “In the Assisted channel, we struck a healthy balance of price, volume, and mix in the quarter which is a testament to our redesigned client experience and our unwavering commitment to delivering value for our clients,” said Tiffany Mason, chief financial officer. “I remain confident in our ability to continue driving significant value as we have a resilient business with strong financial fundamentals, consistent cash flow generation, and a shareholder-friendly capital return practice.”

    Total revenue of $2.3 billion increased by $92.3 million, or 4.2%, versus prior year. The increase was the result of an increase in overall net average charge (NAC), and higher company-owned return volumes in the U.S, partially offset by lower international revenue, and lower interest and fee income on Emerald Advance.

    Total operating expenses of $1.3 billion increased by $42.2 million or 3.4%, primarily due to higher tax professional wages and benefits as a result of the increase in company-owned return volume.

    Net income from continuing operations increased $31.3 million, or 4.5% to $722.9 million.

    Earnings per share from continuing operations2 increased 9.2% to $5.32, and adjusted earnings per share from continuing operations2 increased 8.9% to $5.38, due to higher net income and fewer shares outstanding from share repurchases.

    Capital Allocation

    The Company reported the following related to its capital structure:

    • As previously announced, a quarterly cash dividend of $0.375 per share will be paid on July 3, 2025 to shareholders of record as of June 4, 2025. H&R Block has paid quarterly dividends consecutively since the Company became public in 1962.
    • In the first and second quarters of fiscal 2025, the company repurchased 6.5 million shares at an aggregate price of $400 million, or $61.10 per share.
    • The Company has approximately $1.1 billion remaining on its $1.5 billion share repurchase program.

    Since 2016, the Company has returned more than $4.5 billion to shareholders in the form of dividends and share repurchases, buying back over 43% of its shares outstanding3.

    Fiscal Year 2025 Outlook Reaffirmed

    The Company continues to expect:

    • Revenue to be in the range of $3.69 to $3.75 billion.
    • EBITDA4 to be in the range of $975 million to $1.02 billion.
    • Effective tax rate to be approximately 13%, resulting in a one-time benefit to EPS of approximately 50 cents.
    • Adjusted Diluted Earnings Per Share4 to be in the range of $5.15 to $5.35.

    Conference Call

    The Company will host a conference call for analysts and investors to discuss third quarter 2025 results at 4:30 p.m. ET on Wednesday, May 7, 2025. To join live, participants must register at https://register-conf.media-server.com/register/BI6c8ca5ffb9a24eecba80c3c3a79d2043. Once registered, the participant will receive a dial-in number and unique PIN to access the call. Please join approximately 5 minutes prior to the scheduled start time.

    The call, along with a presentation for viewing, will also be webcast in a listen-only format for the media and general public. The webcast can be accessed directly at https://edge.media-server.com/mmc/p/wfx9997r and will be available for replay 2 hours after the call is concluded and continuing for 90 days. 

    About H&R Block

    H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and also be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.

    About Non-GAAP Financial Information

    This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying tables titled “Non-GAAP Financial Information.”

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “commits,” “seeks,” “estimates,” “projects,” “forecasts,” “targets,” “would,” “will,” “should,” “goal,” “could” or “may” or other similar expressions. Forward-looking statements provide management’s current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. They may also include the expected impact of external events beyond the Company’s control, such as outbreaks of infectious disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate. All forward-looking statements speak only as of the date they are made and reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to a variety of economic, competitive and regulatory factors, many of which are beyond the Company’s control, that are described in our Annual Report on Form 10-K for the most recently completed fiscal year in the section entitled “Risk Factors” and additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You may get such filings for free at our website at https://investors.hrblock.com. In addition, factors that may cause the Company’s actual estimated effective tax rate to differ from estimates include the Company’s actual results from operations compared to current estimates, future discrete items, changes in interpretations and assumptions the Company has made, future actions of the Company, or increases in applicable tax rates in jurisdictions where the Company operates. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

    1All amounts in this release are unaudited. Unless otherwise noted, all comparisons refer to the current period compared to the corresponding prior year period.
    2All per share amounts are based on fully diluted shares at the end of the corresponding period. The Company reports non-GAAP financial measures of performance, including adjusted earnings per share (EPS), earnings before interest, tax, depreciation, and amortization (EBITDA) from continuing operations, and free cash flow which it considers to be useful metrics for management and investors to evaluate and compare the ongoing operating performance of the Company. See “About Non-GAAP Financial Information” below for more information regarding financial measures not prepared in accordance with generally accepted accounting principles (GAAP).
    3Shares outstanding calculated as of April 30, 2016.
    4Adjusted Diluted EPS and EBITDA from continuing operations are non-GAAP financial measures. Future period non-GAAP outlook includes adjustments for items not indicative of our core operations, which may include, without limitation, items described in the below section titled “Non-GAAP Financial Information” and in the accompanying tables. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual, or unanticipated charges, expenses or gains, or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP outlook to the most comparable GAAP measures.

    For Further Information
         
    Investor Relations:   Jordyn Eskijian, (816) 854-5674, jordyn.eskijian@hrblock.com
    Media Relations:   Media Desk, mediadesk@hrblock.com
         
    FINANCIAL RESULTS   (unaudited, in 000s – except per share amounts)
        Three months ended March 31,   Nine months ended March 31,
          2025       2024       2025       2024  
    REVENUES:                
    U.S. tax preparation and related services:                
    Assisted tax preparation   $         1,635,877     $ 1,534,825     $         1,727,220     $ 1,622,430  
    Royalties                  133,961       141,915                    143,312       153,070  
    DIY tax preparation                  214,666       198,570                    231,646       215,529  
    Refund Transfers                  113,732       118,937                    115,229       120,892  
    Peace of Mind® Extended Service Plan                    15,625       16,813                      54,867       59,100  
    Tax Identity Shield®                      7,025       7,536                      14,947       16,810  
    Other                    14,582       12,065                      40,215       32,637  
    Total U.S. tax preparation and related services               2,135,468       2,030,661                 2,327,436       2,220,468  
    Financial services:                
    Emerald Card® and SpruceSM                    40,195       41,160                      59,169       61,493  
    Interest and fee income on Emerald Advance®                    14,286       21,169                      26,594       36,702  
    Total financial services                    54,481       62,329                      85,763       98,195  
    International                    60,438       68,264                    157,104       158,398  
    Wave                    26,717       23,580                      79,681       70,656  
    Total revenues   $         2,277,104     $ 2,184,834     $         2,649,984     $ 2,547,717  
    Compensation and benefits:                
    Field wages                  532,916       510,299                    682,575       650,529  
    Other wages                    74,621       75,356                    230,687       222,125  
    Benefits and other compensation                  111,575       99,653                    188,731       170,964  
                       719,112       685,308                 1,101,993       1,043,618  
    Occupancy                  119,709       119,364                    326,026       319,843  
    Marketing and advertising                  196,667       194,349                    221,502       211,135  
    Depreciation and amortization                    29,221       30,672                      87,247       91,004  
    Bad debt                    40,479       41,008                      62,625       67,560  
    Other                  193,603       185,929                    393,900       360,111  
    Total operating expenses               1,298,791       1,256,630                 2,193,293       2,093,271  
    Other income (expense), net                      4,554       5,224                      19,215       20,982  
    Interest expense on borrowings                   (24,686 )     (26,070 )                   (62,285 )     (63,304 )
    Pretax income                  958,181       907,358                    413,621       412,124  
    Income taxes                  235,253       215,772                    104,580       72,527  
    Net income from continuing operations                  722,928       691,586                    309,041       339,597  
    Net loss from discontinued operations                        (598 )     (849 )                     (2,707 )     (2,097 )
    Net income   $            722,330     $ 690,737     $            306,334     $ 337,500  
    DILUTED EARNINGS PER SHARE                
    Continuing operations   $                  5.32     $ 4.87     $                  2.23     $ 2.34  
    Discontinued operations                       (0.01 )     (0.01 )                       (0.02 )     (0.02 )
    Consolidated   $                  5.31     $ 4.86     $                  2.21     $ 2.32  
    WEIGHTED AVERAGE DILUTED SHARES                  135,329       141,540                    137,944       144,594  
    Adjusted diluted EPS (1)   $                  5.38     $ 4.94     $                  2.41     $ 2.54  
    EBITDA (1)   $         1,012,088     $ 964,100     $            563,153     $ 566,432  
                     
    (1) All non-GAAP measures are results from continuing operations. See “Non-GAAP Financial Information” for a reconciliation of non-GAAP measures.
     
    CONSOLIDATED BALANCE SHEETS   (unaudited, in 000s – except per share data)
    As of   March 31, 2025   June 30, 2024
             
    ASSETS        
    Cash and cash equivalents   $                   772,946     $ 1,053,326  
    Cash and cash equivalents – restricted                           16,744       21,867  
    Receivables, net                         352,398       69,075  
    Prepaid expenses and other current assets                         104,450       95,208  
    Total current assets                      1,246,538       1,239,476  
    Property and equipment, net                         146,456       131,319  
    Operating lease right of use assets                         417,197       461,986  
    Intangible assets, net                         270,007       264,102  
    Goodwill                         785,936       785,226  
    Deferred tax assets and income taxes receivable                         308,989       271,658  
    Other noncurrent assets                           69,888       65,043  
    Total assets   $                3,245,011     $ 3,218,810  
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    LIABILITIES:        
    Accounts payable and accrued expenses   $                   243,754     $ 155,830  
    Accrued salaries, wages and payroll taxes                         269,849       105,548  
    Accrued income taxes and reserves for uncertain tax positions                         346,733       318,830  
    Current portion of long-term debt                         349,787       —  
    Operating lease liabilities                         173,902       206,070  
    Deferred revenue and other current liabilities                         205,778       191,050  
    Total current liabilities                      1,589,803       977,328  
    Long-term debt and line of credit borrowings                      1,142,890       1,491,095  
    Deferred tax liabilities and reserves for uncertain tax positions                         337,634       291,063  
    Operating lease liabilities                         252,630       265,373  
    Deferred revenue and other noncurrent liabilities                         114,892       103,357  
    Total liabilities                      3,437,849       3,128,216  
    COMMITMENTS AND CONTINGENCIES        
    STOCKHOLDERS’ EQUITY:        
    Common stock, no par, stated value $.01 per share                             1,644       1,709  
    Additional paid-in capital                         758,821       762,583  
    Accumulated other comprehensive loss                         (71,317 )     (48,845 )
    Retained earnings (deficit)                       (236,909 )     12,654  
    Less treasury shares, at cost                       (645,077 )     (637,507 )
    Total stockholders’ equity (deficiency)                       (192,838 )     90,594  
    Total liabilities and stockholders’ equity   $                3,245,011     $ 3,218,810  
             
             
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS   (unaudited, in 000s)
    Nine months ended March 31,     2025       2024  
             
    CASH FLOWS FROM OPERATING ACTIVITIES:        
    Net income   $                   306,334     $ 337,500  
    Adjustments to reconcile net income to net cash provided by operating activities:        
    Depreciation and amortization                           87,247       91,004  
    Provision for credit losses                           56,042       61,359  
    Deferred taxes                         (12,503 )     (58,223 )
    Stock-based compensation                           25,420       25,310  
    Changes in assets and liabilities, net of acquisitions:        
    Receivables                       (335,605 )     (348,106 )
    Prepaid expenses, other current and noncurrent assets                           (7,504 )     (18,037 )
    Accounts payable, accrued expenses, salaries, wages and payroll taxes                         240,246       223,045  
    Deferred revenue, other current and noncurrent liabilities                           20,684       12,483  
    Income tax receivables, accrued income taxes and income tax reserves                           50,049       93,961  
    Other, net                           (1,088 )     (32 )
    Net cash provided by operating activities                         429,322       420,264  
    CASH FLOWS FROM INVESTING ACTIVITIES:        
    Capital expenditures                         (71,784 )     (53,831 )
    Payments made for business acquisitions, net of cash acquired                         (35,323 )     (43,163 )
    Franchise loans funded                         (21,455 )     (18,815 )
    Payments from franchisees                           11,478       12,884  
    Other, net                             6,194       3,282  
    Net cash used in investing activities                       (110,890 )     (99,643 )
    CASH FLOWS FROM FINANCING ACTIVITIES:        
    Repayments of line of credit borrowings                    (1,950,000 )     (1,025,000 )
    Proceeds from line of credit borrowings                      1,950,000       1,025,000  
    Dividends paid                       (147,136 )     (135,127 )
    Repurchase of common stock, including shares surrendered                       (436,516 )     (379,018 )
    Other, net                         (11,854 )     (6,358 )
    Net cash used in financing activities                       (595,506 )     (520,503 )
    Effects of exchange rate changes on cash                           (8,429 )     (2,739 )
    Net decrease in cash and cash equivalents, including restricted balances                       (285,503 )     (202,621 )
    Cash, cash equivalents and restricted cash, beginning of period                      1,075,193       1,015,316  
    Cash, cash equivalents and restricted cash, end of period   $                   789,690     $ 812,695  
    SUPPLEMENTARY CASH FLOW DATA:        
    Income taxes paid, net (includes payments for purchased investment tax credits)   $                     65,505     $ 35,888  
    Interest paid on borrowings                           63,251       66,464  
    Accrued additions to property and equipment                             2,448       1,477  
    New operating right of use assets and related lease liabilities                         135,372       139,872  
    Accrued dividends payable to common shareholders                           50,194       44,648  
             
             
    (in 000s)
        Three months ended March 31,   Nine months ended March 31,
    NON-GAAP FINANCIAL MEASURE – EBITDA     2025       2024       2025       2024  
                     
    Net income – as reported   $            722,330     $ 690,737     $            306,334     $ 337,500  
    Discontinued operations, net                          598       849                        2,707       2,097  
    Net income from continuing operations – as reported                  722,928       691,586                    309,041       339,597  
    Add back:                
    Income taxes                  235,253       215,772                    104,580       72,527  
    Interest expense                    24,686       26,070                      62,285       63,304  
    Depreciation and amortization                    29,221       30,672                      87,247       91,004  
                       289,160       272,514                    254,112       226,835  
    EBITDA from continuing operations   $         1,012,088     $ 964,100     $            563,153     $ 566,432  
                     
                     
    (in 000s, except per share amounts)
        Three months ended March 31,   Nine months ended March 31,
    NON-GAAP FINANCIAL MEASURE – EBITDA     2025       2024       2025       2024  
                     
    Net income from continuing operations – as reported   $            722,928     $ 691,586     $            309,041     $ 339,597  
    Adjustments:                
    Amortization of intangibles related to acquisitions (pretax)                    11,278       12,869                      33,316       37,693  
    Tax effect of adjustments (1)                     (2,927 )     (2,793 )                     (8,111 )     (8,815 )
    Adjusted net income from continuing operations   $            731,279     $ 701,622     $            334,246     $ 368,475  
    Diluted earnings per share from continuing operations – as reported   $                  5.32     $ 4.87     $                  2.23     $ 2.34  
    Adjustments, net of tax                        0.06       0.07                          0.18       0.20  
    Adjusted diluted earnings per share from continuing operations   $                  5.38     $ 4.94     $                  2.41     $ 2.54  
                     
    (1)Tax effect of adjustments is the difference between the tax provision calculated on a GAAP basis and on an adjusted non-GAAP basis.
     

    Non-GAAP Financial Information

    Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies.

    We consider our non-GAAP financial measures to be performance measures and a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business. We make adjustments for certain non-GAAP financial measures related to amortization of intangibles from acquisitions and goodwill impairments. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.

    We measure the performance of our business using a variety of metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, adjusted EBITDA from continuing operations, adjusted diluted earnings per share from continuing operations, and free cash flow. We also use EBITDA from continuing operations and pretax income from continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.

    The MIL Network –

  • MIL-OSI: Alto Ingredients, Inc. Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    – Beverage-grade Liquid CO2 Processor Acquisition and Corporate Reorganization Deliver Improved Year-over-Year Gross Margin and Adjusted EBITDA –

    PEKIN, Ill., May 07, 2025 (GLOBE NEWSWIRE) — Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients, reported its financial results for the quarter ended March 31, 2025.

    Bryon McGregor, President and Chief Executive Officer of Alto Ingredients said, “During the first quarter of 2025, gross margin and Adjusted EBITDA improved year-over-year, reflecting our operational uptime and carbon optimization initiative driven by our recent acquisition. Owning Alto Carbonic, the carbon dioxide processing plant adjacent to our Columbia facility, lowered combined costs, improved operations coordination and increased productivity across the facilities. The rightsizing of our company to align with our current footprint is on track to save approximately $8 million annually beginning in the second quarter of 2025, and the reorganization is yielding additional efficiencies.

    “Shifting production to ISCC renewable fuel for delivery into European markets, which is experiencing solid demand at a premium to fuel-grade ethanol, demonstrates Pekin’s flexibility to capitalize on trends. As a result, we grew ISCC sales as a percentage of our total renewable fuel volume sold at our Pekin Campus during the first quarter and partially offset the domestic industry softening of premiums on high quality alcohol and essential ingredients. We are monitoring a few positive movements, such as the growing state, and potentially national, year round adoption of E15 as well as opportunities under the Illinois Clean Transportation Standard Act (SB41). Our team is proactively evaluating alternatives for new revenue streams to leverage our flexible and unique facilities, and to drive long-term sustainable shareholder value.”

    Financial Results for the Three Months Ended March 31, 2025 Compared to 2024

    • Net sales were $226.5 million, compared to $240.6 million.
    • Cost of goods sold was $228.3 million, compared to $243.0 million.
    • Gross loss was $1.8 million, compared to a gross loss of $2.4 million. Net realized gains on derivatives were negligible for both quarters.
    • Selling, general and administrative expenses were $7.2 million, compared to $7.9 million.
    • Interest expense was $2.7 million, compared to $1.6 million.
    • Net loss attributable to common stockholders was $12.0 million, or $0.16 per share, compared to $12.0 million, or $0.17 per share.
    • Adjusted EBITDA was negative $4.4 million, including $1.6 million in unrealized gains on derivatives, compared to negative $7.1 million, including $3.2 million in unrealized gains on derivatives.

    Cash and cash equivalents were $26.8 million at March 31, 2025, compared to $35.5 million at December 31, 2024. At March 31, 2025, the company’s borrowing availability was $76.7 million including $11.7 million under the company’s operating line of credit and $65.0 million under its term loan facility, subject to certain conditions.

    First Quarter 2025 Results Conference Call
    Management will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on Wednesday, May 7, 2025, and will deliver prepared remarks via webcast followed by a question-and-answer session.

    The webcast for the conference call can be accessed from Alto Ingredients’ website at www.altoingredients.com. Alternatively, to receive a number and unique PIN by email, register here. To dial directly up to twenty minutes prior to the scheduled call time, please dial (833) 630-0017 domestically and (412) 317-1806 internationally. The webcast will be archived for replay on the Alto Ingredients website for one year. In addition, a telephonic replay will be available at 8:00 p.m. Eastern Time on Wednesday, May 7, 2025, through 8:00 p.m. Eastern Time on Wednesday, May 14, 2025. To access the replay, please dial (877) 344-7529. International callers should dial 00-1 412-317-0088. The pass code will be 8723820.

    Use of Non-GAAP Measures
    Management believes that certain financial measures not in accordance with generally accepted accounting principles (“GAAP”) are useful measures of operations. The company defines Adjusted EBITDA as unaudited consolidated net income (loss) before interest expense, interest income, provision for income taxes, asset impairments, unrealized derivative gains and losses, acquisition-related expense and depreciation and amortization expense. A table is provided at the end of this release that provides a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss). Management provides this non-GAAP measure so that investors will have the same financial information that management uses, which may assist investors in properly assessing the company’s performance on a period-over-period basis. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of the company’s results as reported under GAAP.

    About Alto Ingredients, Inc.
    Alto Ingredients, Inc. (NASDAQ: ALTO) is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients. Leveraging the unique qualities of its facilities, the company serves customers in a wide range of consumer and commercial products in the Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets. For more information, please visit www.altoingredients.com.

    Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
    Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients’ projected outlook and future performance, including the timing and effects of its business rationalization, right-sizing and other cost savings initiatives; expectations around the growing state, and potentially national, adoption of E15 and opportunities under new legislation, including the Illinois Clean Transportation Standard Act; and Alto Ingredients’ other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients’ plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business and plans. These factors include, among others adverse economic and market conditions, including for renewable fuels, specialty alcohols and essential ingredients; export conditions and international demand for the company’s products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; adverse impacts of inflation and supply chain constraints, including from tariffs; Alto Ingredients’ ability to timely and fully realize the results of its cost saving initiatives; regulatory developments and Alto Ingredients’ ability to successfully pursue and secure opportunities under existing and new legislation. These factors also include, among others, the inherent uncertainty associated with financial and other projections; the anticipated size of the markets and continued demand for Alto Ingredients’ products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the alcohol production, marketing and distribution industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients’ facilities, products and/or businesses; changes in laws, regulations and governmental policies; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 13, 2025.

    Company IR and Media Contact:
    Michael Kramer, Alto Ingredients, Inc., 916-403-2755
    Investorrelations@altoingredients.com

    IR Agency Contact:
    Kirsten Chapman, Alliance Advisors Investor Relations, 415-433-3777
    altoinvestor@allianceadvisors.com

       
    ALTO INGREDIENTS, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (unaudited, in thousands, except per share data)
       
      Three Months Ended
    March 31,
        2025       2024  
    Net sales $ 226,540     $ 240,629  
    Cost of goods sold   228,347       243,029  
    Gross loss   (1,807 )     (2,400 )
    Selling, general and administrative expenses   (7,190 )     (7,932 )
    Loss from operations   (8,997 )     (10,332 )
    Interest expense, net   (2,729 )     (1,634 )
    Other income, net   47       241  
    Loss before provision for income taxes   (11,679 )     (11,725 )
    Provision for income taxes   —       —  
    Net loss $ (11,679 )   $ (11,725 )
    Preferred stock dividends $ (312 )   $ (315 )
    Net loss attributable to common stockholders $ (11,991 )   $ (12,040 )
    Net loss per share, basic and diluted $ (0.16 )   $ (0.17 )
    Weighted-average shares outstanding, basic and diluted   73,836       72,766  
                   
     
    ALTO INGREDIENTS, INC.
    CONSOLIDATED BALANCE SHEETS
    (unaudited, in thousands, except par value)
     
    ASSETS   March 31, 2025       December 31, 2024  
    Current Assets:      
    Cash and cash equivalents $ 26,778     $ 35,469  
    Restricted cash   393       742  
    Accounts receivable, net   65,461       58,217  
    Inventories   50,609       49,914  
    Derivative instruments   4,071       3,313  
    Other current assets   6,149       5,463  
    Total current assets   153,461       153,118  
    Property and equipment, net   212,624       214,742  
    Other Assets:        
    Right of use operating lease assets, net   19,416       20,553  
    Intangible assets, net   8,142       4,509  
    Other assets   8,566       8,516  
    Total other assets   36,124       33,578  
    Total Assets $ 402,209     $ 401,438  
                   
     
    ALTO INGREDIENTS, INC.
    CONSOLIDATED BALANCE SHEETS (CONTINUED)
    (unaudited, in thousands, except par value)
     
    LIABILITIES AND STOCKHOLDERS’ EQUITY   March 31, 2025       December 31, 2024  
    Current Liabilities:      
    Accounts payable $ 17,029     $ 20,369  
    Accrued liabilities   23,819       24,214  
    Current portion – operating leases   4,968       4,851  
    Derivative instruments   301       1,177  
    Other current liabilities   6,999       7,193  
    Total current liabilities   53,116       57,804  
           
    Long-term debt   110,664       92,904  
    Operating leases, net of current portion   15,641       16,913  
    Other liabilities   8,868       8,754  
    Total Liabilities   188,289       176,375  
     
    Stockholders’ Equity:  
    Preferred stock, $0.001 par value; 10,000 shares authorized; Series A: no shares issued and outstanding as of March 31, 2025 and December 31, 2024 Series B: 927 shares issued and outstanding as of March 31, 2025 and December 31, 2024   1       1  
    Common stock, $0.001 par value; 300,000 shares authorized; 76,497 and 76,565 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively   77       77  
    Non-voting common stock, $0.001 par value; 3,553 shares authorized; 1 share issued and outstanding as of March 31, 2025 and December 31, 2024   —       —  
    Additional paid-in capital   1,045,024       1,044,176  
    Accumulated other comprehensive income   4,975       4,975  
    Accumulated deficit   (836,157 )     (824,166 )
    Total Stockholders’ Equity   213,920       225,063  
    Total Liabilities and Stockholders’ Equity $ 402,209     $ 401,438  
                   
     Reconciliation of Adjusted EBITDA to Net Loss Three Months Ended
    March 31,
    (in thousands) (unaudited)             2025       2024  
    Net loss $ (11,679 )   $ (11,725 )
    Adjustments:    
    Interest expense   2,729       1,634  
    Interest income   (84 )     (175 )
    Unrealized derivatives gains   (1,634 )     (3,190 )
    Acquisition-related expense   —       675  
    Depreciation and amortization expense   6,266       5,728  
    Total adjustments   7,277       4,672  
    Adjusted EBITDA $ (4,402 )   $ (7,053 )
     
    Segment Financials
    (in thousands) (unaudited)    		   Three Months Ended
    March 31,
        2025       2024  
    Net sales              
    Pekin Campus production, recorded as gross:              
    Alcohol sales $ 107,234     $ 108,350  
    Essential ingredient sales   44,618       46,709  
    Intersegment sales   297       321  
    Total Pekin Campus sales   152,149       155,380  
    Marketing and distribution:              
    Alcohol sales, gross $ 48,997     $ 54,431  
    Alcohol sales, net   61       34  
    Intersegment sales   2,506       2,752  
    Total marketing and distribution sales   51,564       57,217  
         
    Western production, recorded as gross:    
    Alcohol sales $ 16,194     $ 20,231  
    Essential ingredient sales   7,808       7,826  
    Intersegment sales   264       —  
    Total Western production sales   24,266       28,057  
         
    Corporate and other   1,628       3,048  
    Intersegment eliminations   (3,067 )     (3,073 )
    Net sales as reported $ 226,540     $ 240,629  
     
    Cost of goods sold:
    Pekin Campus production $ 155,222     $ 151,112  
    Marketing and distribution   47,650       53,685  
    Western production   25,524       36,517  
    Corporate and other   1,681       2,794  
    Intersegment eliminations   (1,730 )     (1,079 )
    Cost of goods sold as reported $ 228,347     $ 243,029  
           
    Gross profit (loss):      
    Pekin Campus production $ (3,073 )   $ 4,268  
    Marketing and distribution   3,914       3,532  
    Western production   (1,258 )     (8,460 )
    Corporate and other   (53 )     254  
    Intersegment eliminations   (1,337 )     (1,994 ) 
    Gross loss as reported $ (1,807 )   $ (2,400 ) 
                 
    Sales and Operating Metrics (unaudited)
    (in thousands) (unaudited)
    		 Three Months Ended
    March 31,
        2025       2024  
    Alcohol Sales (gallons in millions)      
    Pekin Campus renewable fuel gallons sold   32.6       31.8  
    Western production renewable fuel gallons sold   8.3       11.2  
    Third party renewable fuel gallons sold   24.4       29.7  
    Total renewable fuel gallons sold   65.3       72.7  
    Specialty alcohol gallons sold   24.3       26.3  
    Total gallons sold   89.6       99.0  
           
    Sales Price per Gallon      
    Pekin Campus $ 1.90     $ 1.90  
    Western production $ 1.95     $ 1.80  
    Marketing and distribution $ 2.01     $ 1.83  
    Average sales price per gallon $ 1.93     $ 1.86  
           
    Alcohol Production (gallons in millions)      
    Pekin Campus   54.3       53.6  
    Western production   8.3       9.7  
    Total   62.6       63.3  
           
    Corn Cost per Bushel      
    Pekin Campus $ 4.65     $ 4.73  
    Western production $ 5.95     $ 5.89  
    Total $ 4.81     $ 4.92  
           
    Average Market Metrics    
    PLATTS Ethanol price per gallon $ 1.71     $ 1.56  
    CME Corn cost per bushel $ 4.72     $ 4.35  
    Board corn crush per gallons (1) $ 0.02     $ 0.01  
         
    Essential Ingredients Sold (thousand tons)    
    Pekin Campus:    
    Distillers grains   90.7       87.7  
    CO2   45.3       39.1  
    Corn wet feed   34.5       25.6  
    Corn dry feed   23.8       18.9  
    Corn oil and germ   19.6       17.8  
    Corn meal   9.4       8.3  
    Syrup and other   8.2       9.5  
    Yeast   6.4       5.7  
    Total Pekin Campus essential ingredients sold   237.9       212.6  
         
    Western production:    
    Distillers grains   58.1       71.8  
    CO2   12.6       13.3  
    Syrup and other   0.8       14.2  
    Corn oil   1.4       1.5  
    Total Western production essential ingredients sold   72.9       100.8  
         
    Total Essential Ingredients Sold   310.8       313.4  
         
         
    Essential ingredients return % (2)    
    Pekin Campus return   48.0 %     52.1 %
    Western production return   49.0 %     39.3 %
    Consolidated total return   48.2 %     49.8 %
         

    ________________

    (1)  Assumes corn conversion of 2.80 gallons of alcohol per bushel of corn.
    (2)  Essential ingredients revenues as a percentage of total corn costs consumed.

    The MIL Network –

  • MIL-OSI: Fortinet Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Highlights

    • Total revenue of $1.54 billion, up 14% year over year
    • Product revenue of $459 million, up 12% year over year
    • Billings of $1.60 billion, up 14% year over year1
    • Unified SASE ARR2up 26% and Security Operations ARR2up 30%, year over year
    • Record first quarter GAAP operating margin of 29%
    • Record first quarter Non-GAAP operating margin of 34%1
    • Record Cash flow from operations of $863 million
    • Record Free cash flow of $783 million1

    SUNNYVALE, Calif., May 07, 2025 (GLOBE NEWSWIRE) — Fortinet® (Nasdaq: FTNT), a global cybersecurity leader driving the convergence of networking and security, today announced financial results for the first quarter ended March 31, 2025.

    “We are pleased to report another strong quarter as non-GAAP operating margin increased 570 basis points year over year to a first quarter record of 34%, while billings grew 14% year over year,” said Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. “We continue to accelerate our growth strategy by investing in the rapidly expanding Unified SASE and Security Operations markets, while strengthening our leadership in Secure Networking. Leveraging our deep expertise in networking and security convergence, a strong track record of AI-driven innovation, and seamless product development and integration through our FortiOS operating system, we have established ourselves as the leader in organic innovation and will continue setting the industry standard in cybersecurity.”

    Financial Highlights for the First Quarter of 2025

    • Revenue: Total revenue was $1.54 billion for the first quarter of 2025, an increase of 13.8% compared to $1.35 billion for the same quarter of 2024.
    • Product Revenue: Product revenue was $459.1 million for the first quarter of 2025, an increase of 12.3% compared to $408.9 million for the same quarter of 2024.
    • Service Revenue: Service revenue was $1.08 billion for the first quarter of 2025, an increase of 14.4% compared to $944.4 million for the same quarter of 2024.
    • Billings1: Total billings were $1.60 billion for the first quarter of 2025, an increase of 13.5% compared to $1.41 billion for the same quarter of 2024.
    • Remaining performance obligations: Remaining performance obligations were $6.49 billion as of March 31, 2025, an increase of 11.7% compared to $5.81 billion as of March 31, 2024. We expect to recognize approximately $3.38 billion as revenue over the next 12 months, an increase of 15.4% compared to $2.93 billion as of March 31, 2024.
    • Unified SASE ARR2: Unified SASE ARR was $1.15 billion as of March 31, 2025, an increase of 25.7% compared to $914.7 million as of March 31, 2024.
    • Security Operations ARR2: Security Operations ARR was $434.5 million as of March 31, 2025, an increase of 30.3% compared to $333.5 million as of March 31, 2024.
    • GAAP Operating Income and Margin: GAAP operating income was $453.8 million for the first quarter of 2025, representing a GAAP operating margin of 29.5%. GAAP operating income was $321.2 million for the same quarter of 2024, representing a GAAP operating margin of 23.7%.
    • Non-GAAP Operating Income and Margin1: Non-GAAP operating income was $526.2 million for the first quarter of 2025, representing a non-GAAP operating margin of 34.2%. Non-GAAP operating income was $386.1 million for the same quarter of 2024, representing a non-GAAP operating margin of 28.5%.
    • GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $433.4 million for the first quarter of 2025, compared to GAAP net income of $299.3 million for the same quarter of 2024. GAAP diluted net income per share was $0.56 for the first quarter of 2025, based on 776.8 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.39 for the same quarter of 2024, based on 770.5 million diluted weighted-average shares outstanding.
    • Non-GAAP Net Income and Diluted Net Income Per Share1: Non-GAAP net income was $452.3 million for the first quarter of 2025, compared to non-GAAP net income of $333.9 million for the same quarter of 2024. Non-GAAP diluted net income per share was $0.58 for the first quarter of 2025, based on 776.8 million diluted weighted-average shares outstanding, compared to $0.43 for the same quarter of 2024, based on 770.5 million diluted weighted-average shares outstanding.
    • Cash Flow: Cash flow from operations was $863.3 million for the first quarter of 2025, compared to $830.4 million for the same quarter of 2024. Cash flow from operations for the first quarter of 2025 includes $14.0 million proceeds from an intellectual property matter.
    • Free Cash Flow1: Free cash flow was $782.8 million for the first quarter of 2025, compared to $608.5 million for the same quarter of 2024.

    Guidance

    For the second quarter of 2025, Fortinet currently expects:

    • Revenue in the range of $1.590 billion to $1.650 billion
    • Billings in the range of $1.685 billion to $1.765 billion
    • Non-GAAP gross margin in the range of 80.0% to 81.0%
    • Non-GAAP operating margin in the range of 31.5% to 32.5%
    • Diluted non-GAAP net income per share in the range of $0.58 to $0.60, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 773 million to 777 million.

    For the fiscal year 2025, Fortinet currently expects:

    • Revenue in the range of $6.650 billion to $6.850 billion
    • Service revenue in the range of $4.575 billion to $4.725 billion
    • Billings in the range of $7.200 billion to $7.400 billion
    • Non-GAAP gross margin in the range of 79.0% to 81.0%
    • Non-GAAP operating margin in the range of 31.5% to 33.5%
    • Diluted non-GAAP net income per share in the range of $2.43 to $2.49, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 769 million to 779 million.

    These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

    Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets, gain on intellectual property matters, gain on bargain purchase related to acquisition, gain from an equity method investment and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.

    1 A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures”.
    2 Annual Recurring Revenue or ARR is defined as the annualized value of renewable / recurring customer agreements as of the measurement date, assuming any contract that expires during the next 12 months is renewed at its existing value.

    Conference Call Details

    Fortinet will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the earnings results. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet’s website at https://investor.fortinet.com and a replay will be archived and accessible at https://investor.fortinet.com/events-and-presentations.

    Second Quarter 2025 Conference Participation Schedule:

    • J.P. Morgan Global Technology, Media and Communications Conference
      May 13, 2025
    • Bank of America Global Technology Conference
      June 3, 2025

    Members of Fortinet’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Fortinet’s conference presentations are expected to be available via webcast on the company’s website. To access the most updated information, pre-register and listen to the webcast of each event, please visit the Investor Presentation & Events page of Fortinet’s website at https://investor.fortinet.com/events-and-presentations. The schedule is subject to change.

    About Fortinet (www.fortinet.com)

    Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet’s solutions, which are among the most deployed, most patented and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (“CERTs”), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog or FortiGuard Labs.

    Copyright © 2025 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAgent, FortiAI, FortiAIOps, FortiAntenna, FortiAP, FortiAPCam, FortiAppSec, FortiAuthenticator, FortiBranchSASE, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCART, FortiCASB, FortiCentral, FortiCNP, FortiConnect, FortiController, FortiConverter, FortiCSPM, FortiCWP, FortiDAST, FortiDATA, FortiDB, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevice, FortiDevSec, FortiDLP, FortiEdge, FortiEDR, FortiEndpoint, FortiExplorer, FortiExtender, FortiFirewall, FortiFlex, FortiFone, FortiGSLB, FortiGuest, FortiHypervisor, FortiInsight, FortiIsolator, FortiLAN, FortiLink, FortiMonitor, FortiNAC, FortiNDR, FortiPAM, FortiPenTest, FortiPhish, FortiPoint, FortiPoints, FortiPolicy, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiScanner, FortiSDNConnector, FortiSEC, FortiSIEM, FortiSMS, FortiSOAR, FortiSRA, FortiSwitch, FortiTelemetry, FortiTester, FortiTIP, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM, FortiXDR, Lacework FortiCNAPP, Linksys, Intelligent Mesh, Velop, Max-Stream, Performance Perfected and SECURITY FABRIC. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

    FTNT-F

    Forward-Looking Statements

    This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding any indications related to future growth and market share gains, our strategy going forward, and guidance and expectations around future financial results, including guidance and expectations for the second quarter and full year 2025, and any statements regarding our market opportunity and market size, and business momentum. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in this release. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by economic challenges, a possible economic downturn or recession and the effects of inflation or stagflation, rising interest rates or reduced information technology spending; supply chain challenges; negative impacts from the ongoing war in Ukraine and its related macroeconomic effects and our decision to reduce operations in Russia; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; sales execution risks, including risks in connection with the timing and completion of large strategic deals; uncertainties around continued success in sales growth and market share gains; uncertainties in market opportunities and the market size; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers’ networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to sales and reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive, including advances in artificial intelligence; risks associated with the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by competition and pricing pressure; excess product inventory for any reason, including those caused by the effects of increased inflation and interest rates in certain geographies and the war in Ukraine; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts such as the war in Ukraine or tensions between China and Taiwan, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, and negative impact on sales based on geo-political dynamics and disputes and protectionist policies, including the impact of any future shutdowns of the U.S. government; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (“SEC”), copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events.

    Non-GAAP Financial Measures

    We have provided in this release financial information that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). These non-GAAP financial and liquidity measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.

    Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.

    Billings (non-GAAP). We define billings as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) during the period. We consider billings to be a useful metric for management and investors because billings drive current and future revenue, which is an important indicator of the health and viability of our business and cash flows. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings include amounts that have not yet been recognized as revenue and are impacted by the term of security and support agreements. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue.

    Free cash flow (non-GAAP). We define free cash flow as net cash provided by operating activities minus purchases of property and equipment and excluding any significant non-recurring items, such as proceeds from intellectual property matters. We believe free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures and net of proceeds from intellectual property matters, can be used for strategic opportunities, including repurchasing outstanding common stock, investing in our business, making strategic acquisitions and strengthening the balance sheet. A limitation of using free cash flow rather than the GAAP measures of cash provided by or used in operating activities, investing activities, and financing activities is that free cash flow does not represent the total increase or decrease in the cash and cash equivalents balance for the period because it excludes cash flows from significant non-recurring items, such as proceeds from intellectual property matters, investing activities other than capital expenditures and cash flows from financing activities. Management accounts for this limitation by providing information about our proceeds from intellectual property matters, our capital expenditures and other investing and financing activities on the face of the cash flow statement and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting cash flows from investing and financing activities in our reconciliation of free cash flow. In addition, it is important to note that other companies, including companies in our industry, may not use free cash flow, may calculate free cash flow in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a comparative measure.

    Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus stock-based compensation, amortization of acquired intangible assets, less gain on intellectual property matters and, when applicable, other significant non-recurring items in a given quarter. Non-GAAP operating margin is defined as non-GAAP operating income divided by GAAP revenue. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the items noted above so that our management and investors can compare our recurring core business operating results over multiple periods. There are a number of limitations related to the use of non-GAAP operating income instead of operating income calculated in accordance with GAAP. First, non-GAAP operating income excludes the items noted above. Second, the components of the costs that we exclude from our calculation of non-GAAP operating income may differ from the components that peer companies exclude when they report their non-GAAP results of operations. Management accounts for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP operating income and evaluating non-GAAP operating income together with operating income calculated in accordance with GAAP.

    Non-GAAP net income and diluted net income per share. We define non-GAAP net income as net income plus the items noted above under non-GAAP operating income and operating margin. In addition, we adjust non-GAAP net income and diluted net income per share for a gain on bargain purchase related to acquisition, a gain from an equity method investment related to acquisition and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We define non-GAAP diluted net income per share as non-GAAP net income divided by the non-GAAP diluted weighted-average shares outstanding. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income and non-GAAP operating margin. However, in order to provide a more complete picture of our recurring core business operating results, we include in non-GAAP net income and non-GAAP diluted net income per share, the tax adjustment required resulting in an effective tax rate on a non-GAAP basis, which often differs from the GAAP tax rate. We believe the non-GAAP effective tax rates we use are reasonable estimates of normalized tax rates for our current and prior fiscal years under our global operating structure. The same limitations described above regarding our use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP diluted net income per share. We account for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP diluted net income per share and evaluating non-GAAP net income and non-GAAP diluted net income per share together with net income and diluted net income per share calculated in accordance with GAAP.

    FORTINET, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited, in millions)
     
      March 31,
    2025    		   December 31,
    2024
    		  
    ASSETS                
    CURRENT ASSETS:                
    Cash and cash equivalents $ 3,596.6     $ 2,875.9    
    Short-term investments   1,183.9       1,190.6    
    Accounts receivable—net   1,174.0       1,463.4    
    Inventory   362.7       315.5    
    Prepaid expenses and other current assets   125.4       126.1    
       Total current assets   6,442.6       5,971.5    
    LONG-TERM INVESTMENTS   35.2       —    
    PROPERTY AND EQUIPMENT—NET   1,403.8       1,349.5    
    DEFERRED CONTRACT COSTS   636.2       622.9    
    DEFERRED TAX ASSETS   1,411.6       1,335.6    
    GOODWILL AND OTHER INTANGIBLE ASSETS—NET   357.4       350.4    
    OTHER ASSETS   120.2       133.2    
    TOTAL ASSETS $ 10,407.0     $ 9,763.1    
    LIABILITIES AND STOCKHOLDERS’ EQUITY                
    CURRENT LIABILITIES:                
    Accounts payable $ 224.5     $ 190.9    
    Accrued liabilities   415.0       337.9    
    Accrued payroll and compensation   250.2       255.7    
    Current portion of long-term debt   498.7       —    
    Deferred revenue   3,339.4       3,276.2    
       Total current liabilities   4,727.8       4,060.7    
    DEFERRED REVENUE   3,079.0       3,084.7    
    LONG-TERM DEBT   496.2       994.3    
    OTHER LIABILITIES   141.1       129.6    
       Total liabilities   8,444.1       8,269.3    
    COMMITMENTS AND CONTINGENCIES                
    STOCKHOLDERS’ EQUITY:                
    Common stock   0.8       0.8    
    Additional paid-in capital   1,668.7       1,636.2    
    Accumulated other comprehensive loss   (22.9 )     (26.1 )  
    Retained earnings (accumulated deficit)   316.3       (117.1 )  
                Total stockholders’ equity   1,962.9       1,493.8    
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 10,407.0     $ 9,763.1    
     
    FORTINET, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited, in millions, except per share amounts)
     
      Three Months Ended
    		  
      March 31,
    2025    		   March 31,
    2024
    		  
    REVENUE:                
    Product $ 459.1     $ 408.9    
    Service   1,080.6       944.4    
          Total revenue   1,539.7       1,353.3    
    COST OF REVENUE:                
    Product   149.9       182.8    
    Service   143.2       121.9    
          Total cost of revenue   293.1       304.7    
    GROSS PROFIT:                
    Product   309.2       226.1    
    Service   937.4       822.5    
          Total gross profit   1,246.6       1,048.6    
    OPERATING EXPENSES:                
    Research and development   198.6       173.0    
    Sales and marketing   542.7       501.1    
    General and administrative   57.8       54.4    
    Gain on intellectual property matters   (6.3 )     (1.1 )  
          Total operating expenses   792.8       727.4    
    OPERATING INCOME   453.8       321.2    
    INTEREST INCOME   44.3       32.2    
    INTEREST EXPENSE   (4.9 )     (5.1 )  
    OTHER INCOME (EXPENSE)—NET   26.1       (2.9 )  
    INCOME BEFORE INCOME TAXES AND GAIN (LOSS) FROM EQUITY METHOD
    INVESTMENTS    		   519.3       345.4    
    PROVISION FOR INCOME TAXES   96.5       39.5    
    GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS   10.6       (6.6 )  
    NET INCOME $ 433.4     $ 299.3    
    Net income per share:                
    Basic $ 0.56     $ 0.39    
    Diluted $ 0.56     $ 0.39    
    Weighted-average shares outstanding:                
    Basic   768.3       762.4    
    Diluted   776.8       770.5    
     
    FORTINET, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited, in millions)
     
      Three Months Ended
    		  
      March 31,
    2025    		   March 31,
    2024
    		  
    CASH FLOWS FROM OPERATING ACTIVITIES:                
    Net income $ 433.4     $ 299.3    
    Adjustments to reconcile net income to net cash provided by operating activities:                
             Stock-based compensation   66.1       62.3    
             Amortization of deferred contract costs   78.0       72.0    
             Depreciation and amortization   35.8       28.6    
             Amortization of investment discounts   (10.3 )     (12.2 )  
             Other   (35.5 )     9.9    
             Changes in operating assets and liabilities, net of impact of business combinations:                
                      Accounts receivable—net   303.9       405.6    
                      Inventory   (34.1 )     36.5    
                      Prepaid expenses and other current assets   3.4       (0.1 )  
                      Deferred contract costs   (91.3 )     (66.5 )  
                      Deferred tax assets   (30.0 )     (73.9 )  
                      Other assets   1.5       (6.2 )  
                      Accounts payable   24.6       (61.6 )  
                      Accrued liabilities   63.7       105.0    
                      Accrued payroll and compensation   (8.2 )     (27.4 )  
                      Deferred revenue   57.0       54.8    
                      Other liabilities   5.3       4.3    
                             Net cash provided by operating activities   863.3       830.4    
    CASH FLOWS FROM INVESTING ACTIVITIES:                
    Purchases of investments   (503.0 )     (436.1 )  
    Sales of investments   2.8       —    
    Maturities of investments   466.9       393.4    
    Purchases of property and equipment   (66.5 )     (221.9 )  
    Payments made in connection with business combinations, net of cash acquired   (11.2 )     (5.7 )  
    Other   0.2       —    
                             Net cash used in investing activities   (110.8 )     (270.3 )  
    CASH FLOWS FROM FINANCING ACTIVITIES:                
    Proceeds from issuance of common stock   20.2       13.4    
    Taxes paid related to net share settlement of equity awards   (52.9 )     (42.9 )  
    Other   —       (0.8 )  
                             Net cash used in financing activities   (32.7 )     (30.3 )  
    EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS   0.9       (1.4 )  
    NET INCREASE IN CASH AND CASH EQUIVALENTS   720.7       528.4    
    CASH AND CASH EQUIVALENTS—Beginning of period   2,875.9       1,397.9    
    CASH AND CASH EQUIVALENTS—End of period $ 3,596.6     $ 1,926.3    
     
    Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures
    (Unaudited, in millions, except per share amounts)
     
    Reconciliation of GAAP operating income to non-GAAP operating income, operating margin, net income and diluted net income per share
     
      Three Months Ended
    		  
      March 31,
    2025    		   March 31,
    2024
    		  
    Reconciliation of non-GAAP operating income:                
    GAAP operating income $ 453.8     $ 321.2    
    GAAP operating margin   29.5 %     23.7 %  
    Add back:                
        Stock‐based compensation   66.9       63.0    
        Amortization of acquired intangible assets   11.8       3.0    
        Gain on intellectual property matters   (6.3 )     (1.1 )  
    Non‐GAAP operating income $ 526.2     $ 386.1    
    Non‐GAAP operating margin   34.2 %     28.5 %  
                     
    Reconciliation of non-GAAP net income:                
    GAAP net income $ 433.4     $ 299.3    
    Add back:                
        Stock‐based compensation   66.9       63.0    
        Amortization of acquired intangible assets   11.8       3.0    
        Gain on intellectual property matters   (6.3 )     (1.1 )  
        Gain on bargain purchase (a)   (39.9 )     —    
        Tax adjustment (b)   (2.8 )     (30.3 )  
        Gain from equity method investment (c)   (10.8 )     —    
    Non-GAAP net income $ 452.3     $ 333.9    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Non-GAAP net income per share, diluted                
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Non-GAAP net income $ 452.3     $ 333.9    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
        Non-GAAP shares used in diluted net income per share calculations   776.8       770.5    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Non-GAAP net income per share, diluted $ 0.58     $ 0.43    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Reconciliation of non-GAAP net income per share, diluted                
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    GAAP net income per share, diluted $ 0.56     $ 0.39    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Add back:                
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
        Non-GAAP adjustments to net income per share   0.02       0.04    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Non-GAAP net income per share, diluted $ 0.58     $ 0.43    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    (a) To exclude a $39.9 million gain on bargain purchase related to our acquisition of Linksys Holdings, Inc. (“Linksys”) in the three months ended March 31, 2025.
    (b) Non-GAAP financial information is adjusted to an effective tax rate of 18% and 17% in the three months ended March 31, 2025 and 2024, respectively, on a non-GAAP basis, which differs from the GAAP effective tax rate.
    (c) To exclude a $10.8 million gain from equity method investment in Linksys resulted from our acquisition of Linksys in the three months ended March 31, 2025.
     
    Reconciliation of net cash provided by operating activities to free cash flow
     
      Three Months Ended
    		  
      March 31,
    2025    		   March 31,
    2024
    		  
    Net cash provided by operating activities $ 863.3     $ 830.4    
    Less: Purchases of property and equipment   (66.5 )     (221.9 )  
    Less: Proceeds from intellectual property matter   (14.0 )     —    
    Free cash flow $ 782.8     $ 608.5    
    Net cash used in investing activities $ (110.8 )   $ (270.3 )  
    Net cash used in financing activities $ (32.7 )   $ (30.3 )  
     
    Reconciliation of total revenue to total billings
     
      Three Months Ended
    		  
      March 31,
    2025    		   March 31,
    2024
    		  
    Total revenue $ 1,539.7   $ 1,353.3    
    Add: Change in deferred revenue   57.5     54.9    
    Less: Deferred revenue balance acquired in business acquisitions   —     (1.0 )  
    Total billings $ 1,597.2   $ 1,407.2    
     
    Investor Contact: Media Contact:
     
    Aaron Ovadia
    Fortinet, Inc.
    408-235-7700
    investors@fortinet.com    		 Michelle Zimmermann
    Fortinet, Inc.
    408-235-7700
    pr@fortinet.com

    The MIL Network –

  • MIL-OSI USA: Cortez Masto, Boozman Push for Necessary Updates to Veteran Home Improvement Program

    US Senate News:

    Source: United States Senator for Nevada Cortez Masto
    Washington, D.C. – Today, U.S. Senators Catherine Cortez Masto (D-Nev.) and John Boozman (R-Ark.) introduced the bipartisan Autonomy for Disabled Veterans Act, which would help disabled veterans and their families make accessibility and safety improvements to their homes. Specifically, this bipartisan bill would help disabled veterans build accessible bathrooms, widen their doors, and install wheelchair ramps, grab bars and handrails in their homes.
    “After making countless sacrifices in service to our country, disabled veterans deserve to live in their own home with more freedom and dignity,” said Senator Cortez Masto. “That’s why I’m proud to work alongside Senator Boozman to provide them the resources they need to make improvements to their homes for accessibility and safety. I will continue working across the aisle to stand up for Nevada veterans and their families.”
    “Arkansas veterans have sacrificed tremendously in service to our nation,” said Senator Boozman. “One of the most important ways we can support our former servicemembers is to ensure those living with a disability feel safer in an accessible home with a greater sense of independence and quality of life. I am pleased to champion commonsense improvements that will better serve those who have worn our nation’s uniform.”
    “VA’s Home Improvements and Structural Alterations grant program provides modifications to a veteran or service member’s primary residence. However, years of inattention have diminished the effectiveness of this program, and it is long past time to update grant rates to realistic levels. We appreciate the efforts of Senator Cortez Masto and Senator Boozman to correct that by increasing grant rates and tying them to a formula, so they remain current for years to come,” said Heather Ansley, Chief Policy Officer of Paralyzed Veterans of America.
    The Department of Veteran Affairs’ Home Improvements and Structural Alterations (HISA) program offers funds to help eligible disabled veterans with service-related medical issues make alterations to their homes to accommodate their medical needs. But HISA grants have not kept up with the current cost of materials and building. The Autonomy for Disabled Veterans Act would improve HISA by: 
    Increasing the HISA grant from $6,800 to $10,000 for veterans with disabilities who apply after the bill becomes law, helping to cover the true cost of home improvements like accessible bathrooms.
    Raising the grant from $2,000 to $6,800 for veterans with non-service-connected disabilities who applied before the bill is enacted, ensuring they also get better support.
    Requiring the VA to adjust the grant amounts annually based on the cost of residential construction, so the funding stays relevant as prices change.
    The Autonomy for Disabled Veterans Act has been endorsed by Paralyzed Veterans of America. A similar bill will be introduced in the House of Representatives by Reps. Eric Sorensen (D-Ill.-17), Nicole Malliotakis (R-N.Y.-11), and Mark Takano (D-Calif.-39).
    Read the full bill here.
    Senator Cortez Masto is a champion for our service members and veterans. Cortez Masto helped pass the PACT Act to ensure veterans suffering from toxic exposure in the line of duty get the medical care they need, and she worked across the aisle to get legislation helping veterans exposed to Agent Orange and expanding benefits for women veterans signed into law. The Senator sent a letter to U.S. Department of Veterans Affairs Secretary Collins demanding he provide answers on the mass terminations of personnel across the VA, specifically those in Nevada, and how those terminations would impact services to Nevada veterans.

    MIL OSI USA News –

  • MIL-OSI USA: Establishing 10 Youth Assertive Community Treatment Teams

    Source: US State of New York

    overnor Kathy Hochul today announced that $4.5 million in state funding was awarded to establish 10 new Youth Assertive Community Treatment teams, including five in New York City, two on Long Island and three in areas north of the metropolitan area. Administered by the state Office of Mental Health, the new multidisciplinary teams will support 360 additional youth with serious emotional disturbances who are either at risk of entering, or are returning home from high intensity services, such as inpatient settings or residential services.

    “Children and youth living with mental illness sometimes require additional care to remain at home or return back into the community,” Governor Hochul said. “This expansion of our Youth ACT program will help provide more families with this critical support and the services they can rely on to bring their child home after inpatient care or from a residential facility.”

    OMH provided $450,000 in one-time start-up funding to 10 service providers to establish the new teams, with each serving up to 36 children between the ages of 10 and 21. Award recipients include:

    • Access Supports for Living Inc., serving Westchester County
    • The Charles Evans Center, serving Nassau County
    • Central Nassau Guidance and Counseling, serving Suffolk County
    • Children’s Home of Wyoming Conference, serving Chenango County
    • Interborough Developmental & Consultation Center, serving Brooklyn
    • The Child Center of NY, two teams serving Manhattan and Queens
    • Jewish Child Care Association of NY, serving the Bronx
    • Child and Family Services of Erie County, serving Erie County
    • Richmond University Medical Center, serving Staten Island

    In addition to announcing the awards, Governor Hochul also issued a proclamation designating Children’s Mental Health Awareness Week in New York State. The proclamation was presented this week during the annual ‘What’s Great in Our State’ Celebration of Children’s Mental Health event in Albany, which recognizes individuals and programs successfully advancing the cause of children’s mental health.

    With the first teams established in 2022, New York was the first state nationally to adapt the successful Assertive Community Treatment model to serve youth and young adults. The state now hosts 20 Youth ACT teams in 27 counties, providing services including youth and family therapy, medication management, family and peer supports, and skill-building.

    Office of Mental Health Commissioner Dr. Ann Sullivan said, “New York’s Youth ACT program is a fantastic first-in-the-nation adaptation to a model that has proven extremely successful with adults living with mental illness. By adding teams statewide, we can help more young people and their families to access the care and support they can use to live and thrive within their community. The expansion of this successful program demonstrates Governor Hochul’s ongoing commitment to expand access to mental healthcare throughout our state.”

    Youth ACT teams include mental health clinicians and psychiatric prescribers, peer advocates, and clinical support staff, offering 24-hour support, seven days per week. These teams are focused on improving or ameliorating the significant functional impairments and severe symptomatology experienced by the youth due to mental illness or serious emotional disturbance.

    Clinical and rehabilitative interventions are also focused on enhancing family functioning to foster wellbeing, stability, and re-integration. Services are delivered using a family-driven, youth-guided, and developmentally appropriate approach that comprehensively addresses the needs of the youth.

    Governor Hochul’s support for youth mental health has resulted in major investments into youth services and supports and nation-leading legislation to address online safety. Her $1 billion mental health initiative and the FY 2025 Budget has significantly expanded access to mental health care and is providing resources for young people and their families.

    Last year, Governor Hochul established the Youth Mental Health Advisory Board, a 30-member advisory board which includes youth between the ages of 11 and 17. The advisory board convenes quarterly and is designed to ensure that youth-informed best practices continue to be incorporated in developing behavioral health programs and policies.

    New York also now supports more than 1,200 school-based mental health clinic satellites to provide mental health services at districts statewide. These clinics bring a licensed mental health care provider to school campuses, allowing students to access these services in a familiar stigma-free setting.

    Under Governor Hochul’s leadership, the state has also significantly expanded HealthySteps, an innovative program that supports young families with high-quality care for mental and physical health development for children 3 years old or younger. New York now supports 125 sites in 35 counties statewide.

    Additionally, the state continues to expand Home-Based Crisis Intervention teams, which provide critical mental health services so that at-risk children and youth can avoid psychiatric hospitalization. The state now funds 55 teams, which have the capacity to assist 3,500 families annually.

    New York State Coalition for Children’s Behavioral Health President and CEO Kayleigh Zaloga said, “New York’s Youth ACT program fills a critical role in the behavioral health service continuum for adolescents and families, enabling hundreds of young people with significant mental health needs to remain or reintegrate into their families, schools, and communities. The multidisciplinary team approach offers families the support they need when they need it, delivering intensive in-home therapy, peer support, medication management, and crisis intervention centered on each young person’s goals. This work not only stabilizes youth and families in the short term, but also helps them build the skills, resilience, and community connections necessary to thrive into adulthood.”

    Assemblymember Jo Anne Simon said, “Youth Assertive Community Treatment teams are meeting young people where they are at, in their homes, in their communities, and often at their most critical moments. This investment means more families won’t have to choose between getting help and staying together. By surrounding youth with compassionate and expert care, we’re not just addressing symptoms, we’re giving them the support they need,” said

    MIL OSI USA News –

  • MIL-OSI Australia: Kondalilla National Park temporary closure

    Source: Tasmania Police

    Issued: 7 May 2025

    Parts of Kondalilla National Park, including the Kondalilla Falls Lower Circuit are temporarily closed due to damage from flash flooding.

    Recent heavy rainfall and severe weather in the Blackall Range has resulted in damage to bridges and tracks in the national park.

    Queensland Parks and Wildlife Service (QPWS) Rangers are working to assess and repair the damage and will re-open parts of the Kondalilla Falls when it is safe to do so.

    These measures have been enforced to ensure the safety of visitors.

    Sections of Kondalilla National Park remain open:

    • Picnic Creek Circuit
    • Kondalilla Falls Lookout
    • Kondalilla Falls Rock Pools
    • Access to Flat Rock and the Sunshine Coast Hinterland Great Walk

    Visitors are being urged to check Park Alerts for up-to-date information on protected area closures.

    QPWS will continue to monitor the situation and will provide updates when the protected areas are safe to reopen.

    The public is urged to obey all signs and directions from Rangers to ensure their safety.

    Media contact:                 DETSI Media Unit on (07) 3339 5831 or media@des.qld.gov.au

    MIL OSI News –

  • MIL-OSI Australia: K’gari’s annual planned burning program ignites for 2025

    Source: Tasmania Police

    Issued: 7 May 2025

    The flames of protection and renewal are lighting up K’gari once again as the island’s annual collaborative planned burning program sparks into action.

    From now through July, fire-trained Queensland Parks and Wildlife Service (QPWS) rangers and their firefighting partners will be leading the charge across key areas of the island to safeguard its unique ecosystems and protect vital infrastructure.

    After a soggy start to the year, including the impacts of Ex-Tropical Cyclone Alfred and a bustling Easter holiday season, QPWS has officially launched this year’s planned burn initiative.

    In late April, the first planned burns were carefully conducted at the Dundubara camping area.

    Over a two-day operation, rangers expertly applied low-intensity fire to reduce fuel loads around the popular campground and nearby dingo exclusion fence.

    The result was a safer, more resilient landscape – better prepared for bushfire season and the next phase of aerial planned burns.

    Senior Ranger Linda Behrendorff emphasised the importance of timing and ecological balance.

    “Now is the prime time for planned burning on K’gari,” Ranger Linda said.

    “We take many factors into account – like seasonal wildlife movements, peak visitor periods, and recent weather patterns – to ensure every burn benefits the environment and the community.”

    Planned burns play a critical role in QPWS’s long-term fire management strategy.

    By creating a diverse mosaic of burnt and unburnt areas, these efforts help reduce bushfire intensity, support biodiversity, and promote healthier ecosystems across the K’gari section of Great Sandy National Park.

    Visitors to K’gari over the coming months are encouraged to stay informed, respect Ranger instructions, and look out for signage related to fire operations.

    For your safety and the safety of others:

    • Never enter closed areas
    • Only light campfires in designated zones
    • If smoke is present, stay indoors, close windows and doors, and keep respiratory medication handy

    For the latest updates, visit the QPWS Fire Management webpage or stay connected via Park Alerts and @QldParkAlerts on X (formerly Twitter).

    MIL OSI News –

  • MIL-OSI Global: India-Pakistan strikes: 5 essential reads on decades of rivalry and tensions over Kashmir

    Source: The Conversation – Global Perspectives – By Matt Williams, Senior International Editor

    Indian paramilitary soldiers patrol a street in Srinagar, Jammu and Kashmir on May 4, 2025. Firdous Nazir/NurPhoto via Getty Images

    Indian airstrikes deep into Pakistan and retaliatory shelling across the border have put the subcontinent on edge once again, with many fearing a further escalation between the two nuclear neighbors.

    At least 26 people were killed on May 6, 2025, by missiles launched by India, according to Pakistani authorities. India says it targeted “terrorist infrastructure” sites in the operation in response to an attack on April 22 that saw dozens of tourists in Indian-administered Kashmir killed by gunmen.

    Pakistan warned it would respond “at a time, place and manner of its choosing.” Meanwhile, shelling by Pakistan across the “line of control” separating the Indian- and Pakistani-controlled parts of Kashmir killed 15 people, India says.

    It represents the most serious fighting between the two countries in decades. But Kashmir has long been a source of tension between India and Pakistan, as articles from The Conversation’s archive explain.

    1. The roots of the conflict

    The dispute over Kashmir, which sits on the northern tip of the Indian subcontinent and borders Pakistan to the west, can be traced back to the partition of India in 1947 and the policies of colonial British rule that preceded it.

    As Sumit Ganguly, an expert of Indian politics and foreign policy, explains, the British gave the rulers of nominally autonomous princely states the choice of which country they wanted to join post-partition: Muslim-majority Pakistan or Hindu-majority India. This put Maharaja Hari Singh, the monarch of Jammu and Kashmir, in a tricky position – he was a Hindu ruling over a predominantly Muslim population.

    “India, which was created as a secular state, wanted to incorporate Kashmir to demonstrate that a predominantly Muslim region could thrive in a Hindu-majority country committed to secularism. Pakistan, on the other hand, sought Kashmir because of its physical proximity and Muslim majority,” writes Ganguly.

    While Singh was still deliberating, a rebellion broke out in Kashmir, with newly independent Pakistan giving the insurgents support. India sent troops in on condition that Singh formally accede to India, and the first of four Indian-Pakistan wars began in 1947. It ended with Pakistan gaining control of a third of the disputed region.

    “Neither country has wholly reconciled itself to Kashmir’s status. India claims the state in its entirety, as it became a part of its territory legally. Pakistan, however, has historically held the view that Kashmir was ceded to India by a ruler who did not represent its majority Muslim population. Indeed, this dispute between two nuclear-armed powers remains a potential global flashpoint,” Ganguly adds.



    Read more:
    75 years ago, Britain’s plan for Pakistani and Indian independence left unresolved conflicts on both sides – especially when it comes to Kashmir

    2. More than a border dispute

    But to see Kashmir solely through the lens of Indian-Pakistani rivalry would do the complicated conflict a disservice. Often neglected in this reading is the views of many Kashmiris themselves, many of whom would prefer independence.

    Chitralekha Zutshi, a professor of history at William & Mary, notes that the desire for autonomy by groups in the region has resulted in numerous independence movements and repeated uprisings.

    Fighters from the pro-independence Jammu and Kashmir Liberation Front parade in 1991.
    Mushtaq Ali/AFP via Getty Images

    Pakistan has supported some of these movements, a fact that India has seized upon to “write off unrest in the Kashmir Valley as a byproduct of its territorial dispute with Pakistan,” Zutshi writes. But in so doing, the grievances of “an entire generation of young Kashmiris” who view India as “an occupying power” have been ignored, the scholar continues.

    She concludes: “The Kashmir dispute cannot be resolved bilaterally by India and Pakistan alone – even if the two countries were willing to work together to resolve their differences. This is because the conflict has many sides.”



    Read more:
    Kashmir conflict is not just a border dispute between India and Pakistan

    3. A water war?

    Backing up the claim that the views of Kashmiris are often neglected is the fact that the Indus Waters Treaty – a crucial decades-old agreement that allows Pakistan and India to share water use from the region’s rivers – was drawn up largely without the input of Kashmiri people, writes Fazlul Haq, a research scientist at Ohio State University.

    Haq, who helps run the university’s Indus Basin Water Project, explains that even before the latest flare-up of violence, a dispute over the treaty was causing tension between India and Pakistan. The problem was that the original treaty, hailed as a success for many years, didn’t take into account the impact of climate change. Melting glaciers have put the long-term sustainability of the treaty at risk, jeopardizing the water supply for more than 300 million people.


    Fazlul Haq/Bryan Mark/Byrd Polar and Climate Research Center/Ohio State University, CC BY

    “Despite being the primary source of water for the basin, Kashmiris have had no role in negotiations or decision-making under the treaty,” Haq writes. Nor did it provide a mechanism for any regional disputes. “Tensions over hydropower projects in Kashmir were bringing India and Pakistan toward diplomatic deadlock long before the recent attack,” Haq notes.

    “The treaty now exists in a state of limbo. While it technically remains in force, India’s formal notice for review has introduced uncertainty, halting key cooperative mechanisms and casting doubt on the treaty’s long-term durability,” Haq writes. Pakistan has said any attempt to disrupt its water supply under the treaty would be considered “an act of war.”



    Read more:
    Tensions over Kashmir and a warming planet have placed the Indus Waters Treaty on life support

    4. On the precipice of a new war?

    There have been four full-scale conflicts between India and Pakistan: in 1947, 1965, 1971 and 1999.

    But since the turn of the millennium, cross-border skirmishes in Kashmir have largely been contained, in part due to external pressure from the United States and others who fear the economic and regional consequences of a conflict between the nuclear-armed neighbors.

    International relations expert Ian Hall, of Griffith University in Australia, writes that the calculus has changed a little. He notes that there is little economic cost to escalation, with “practically no trade between India and Pakistan.”

    The main concern for both sides now is “the political cost they would suffer from not taking military action,” Hall adds.



    Read more:
    India and Pakistan have fought many wars in the past. Are we on the precipice of a new one?

    5. The need for a Pakistan-India hotline

    During past crises between Pakistan and India, Washington has played an important role in deescalating tensions.

    U.S. President Donald Trump’s recent comments that he believes Pakistan and India will “figure it out one way or the other” suggests this is one occasion in which the U.S. may take a back seat.

    But as Syed Ali Zia Jaffery at the University of Lahore and Nicholas John Wheeler at the University of Birmingham in the U.K. note, that creates a problem.

    “The absence of a trusted confidential line of communication between the leaders of India and Pakistan is a major barrier to empathetic communication. It prevents the two reaching a proper appreciation of shared vulnerabilities that is so critical to crisis de-escalation,” they write.

    Their article uses the example of the Cuban missile crisis of 1962 to tout the importance of what the two scholars describe as “empathetic channels of communication.” U.S. President John F. Kennedy and his Soviet counterpart, Nikita Khrushchev, “exchanged a series of letters in which they acknowledged and expressed their shared vulnerability to nuclear war,” Jaffery and Wheeler write. Establishing mutual empathy and a bond of trust were critical to the peaceful resolution of the crisis.

    “Such a hotline between the highest levels of Indian and Pakistani diplomacy would be an important step towards preventing these crises from spinning out of control. More crucially, it could play a pivotal role in managing crises when they do occur, offering a vital channel for reassurance and de-escalation,” Jaffery and Wheeler add.



    Read more:
    Why a hotline is needed to help bring India and Pakistan back from the brink of a disastrous war

    – ref. India-Pakistan strikes: 5 essential reads on decades of rivalry and tensions over Kashmir – https://theconversation.com/india-pakistan-strikes-5-essential-reads-on-decades-of-rivalry-and-tensions-over-kashmir-256157

    MIL OSI – Global Reports –

  • MIL-OSI: Coface SA: Publication of Group and Standalone SFCR as of 31 December 2024

    Source: GlobeNewswire (MIL-OSI)

    COFACE SA: Publication of Group and Standalone SFCR as of 31 December 2024

    Paris, 7 May 2025 – 17.45

    COFACE SA has published today its Solvency and Financial Condition Report (SFCR) for COFACE SA (Group) and Compagnie française d’assurance pour le commerce extérieur (the « Compagnie »), in compliance with the Solvency II requirements1.

    The Board of Directors of COFACE SA and the Compagnie, respectively approved the SFCR for the financial year 2024. This report is produced on an annual basis:

    • for Coface Group, involving COFACE SA and its main subsidiaries in France and outside France;
    • for the Compagnie, on a standalone basis.

    HIGHLIGHTS

    • To assess its solvency, COFACE SA uses the partial internal model approved by the ACPR in 2019. The Compagnie’s solvency is still assessed using the interpretation of the standard formula.
    • As of 31 December 2024, eligible own funds to cover the Group’s SCR amounted to €2,630 million, which broke down as follows:
      • 75% of Tier 1 capital;
      • 24% of Tier 2 capital;
      • 1% of Tier 3 capital, representing deferred tax assets.
    • The Group’s SCR coverage ratio of 196%2 at the end of 2024 reflects a solvency ratio above its target range (155% -175%). This level supports the Group’s decision to distribute 80% of its net profit for 2024 by a €1.403 dividend per share.
    • The coverage ratio of the Compagnie SCR (Solo) at the end of 2024 is 237%4.

    The full report is available on the website of the Company at the following address:
    https://www.coface.com/investors/regulated-information/annual-reports

    CONTACTS

    ANALYSTS / INVESTORS
    Thomas JACQUET: +33 1 49 02 12 58 – thomas.jacquet@coface.com
    Rina ANDRIAMIADANTSOA: +33 1 49 02 15 85 – rina.andriamiadantsoa@coface.com

    MEDIA RELATIONS
    Saphia GAOUAOUI: +33 1 49 02 14 91 – saphia.gaouaoui@coface.com
    Adrien BILLET: +33 1 49 02 23 63 – adrien.billet@coface.com

    FINANCIAL CALENDAR 2025
    (subject to change)

    Annual General Shareholders’ Meeting: 14 May 2025
    H1-2025 results: 31 July 2025 (after market close)
    9M-2025 results: 3 November 2025 (after market close)

    FINANCIAL INFORMATION
    This press release, as well as COFACE SA’s integral regulatory information, can be found on the Group’s website: http://www.coface.com/Investors

    For regulated information on Alternative Performance Measures (APM), please refer to our Interim Financial Report for H1-2024 and our 2024 Universal Registration Document (see part 3.7 “Key financial performance indicators”).

    Regulated documents posted by COFACE SA have been secured and authenticated with the blockchain technology by Wiztrust.
    You can check the authenticity on the website www.wiztrust.com.
     

    COFACE: FOR TRADE
    As a global leading player in trade credit risk management for more than 75 years, Coface helps companies grow and navigate in an uncertain and volatile environment.
    Whatever their size, location or sector, Coface provides 100,000 clients across some 200 markets with a full range of solutions: Trade Credit Insurance, Business Information, Debt Collection, Single Risk insurance, Surety Bonds, Factoring.
    Every day, Coface leverages its unique expertise and cutting-edge technology to make trade happen, in both domestic and export markets.
    In 2024, Coface employed ~5,236 people and registered a turnover of €1.84 billion.

    www.coface.com

    COFACE SA is quoted in Compartment A of Euronext Paris
    Code ISIN: FR0010667147 / Ticker: COFA

    DISCLAIMER – Certain declarations featured in this press release may contain forecasts that notably relate to future events, trends, projects or targets. By nature, these forecasts include identified or unidentified risks and uncertainties, and may be affected by many factors likely to give rise to a significant discrepancy between the real results and those stated in these declarations. Please refer to chapter 5 “Main risk factors and their management within the Group” of the Coface Group’s 2024 Universal Registration Document filed with AMF on 5 April 2024 under the number D.25-0227 in order to obtain a description of certain major factors, risks and uncertainties likely to influence the Coface Group’s businesses. The Coface Group disclaims any intention or obligation to publish an update of these forecasts, or provide new information on future events or any other circumstance.

    1 The Solvency II Directive (i) formalises and organises information requests, and (ii) clarifies the governance requirements and processes to be followed by insurers. In particular, the regulations provide for the establishment of two narrative reports: one for the Regulator (RSR) and one for the public (SFCR).
    2 Final calculation of the SCR coverage ratio using the partial group internal model. Non audited.
    3 Ex-dividend date is on 20 May 2025 and Payment date is on 22 May 2025. The proposed distribution of €1.40 per share is subject to approval of the Annual Shareholders’ Meeting that takes place on 14 May 2025.
    4 Final calculation of the SCR coverage ratio according to Coface’s interpretation of Solvency II standard formula. Non audited.

    Attachment

    The MIL Network –

  • MIL-OSI USA: School of Nursing’s Sigma Theta Tau Mu Chapter Inducts 69 New Members

    Source: US State of Connecticut

    On April 27, UConn School of Nursing’s Sigma Theta Tau Mu Chapter held their annual induction ceremony. Undergraduate and graduate students, as well as nursing professionals and community leaders, were offered membership to the Honor Society. 

    In 1955, the UConn School of Nursing chartered Mu Chapter as the 11th chapter of Sigma Theta Tau International, the Honor Society of Nursing. There are now over 540 chapters internationally. 

    President Elizabeth Mayerson, DNP, RN, APRN, FNP-BC, CNE, presided over the ceremony. She explained “in the name of our honor society, Sigma represents love, Theta represents courage, and Tau represents honor. Our crest represents wisdom and discernment, service, professional endeavor, strength of leadership, and knowledge. Our key, which is represented on Sigma’s pin, denotes the satisfaction of professional life, the six founders, the lamp of knowledge, and our charge.” 

    UConn School of Nursing’s Sigma Theta Tau Mu Chapter 2025 induction ceremony. (Emily Laput)

    Based in Indianapolis, Sigma Theta Tau promotes scholarship and research in the field of nursing. The Mu Chapter hosts local meetings year-round and sends delegates to the society’s annual conferences at the regional, national, and international levels. It also supports exceptional research proposals through monetary awards provided by both the Mu Chapter and Sigma Theta Tau International. 

    “This is a really important and exciting part of your nursing journey,” Dean Victoria Vaughan Dickson, Ph.D., RN, FAHA, FHFSA, FAAN, shared with the inductees. “Many of you, if not all of you will be graduating soon, and that will mark you on your professional journey. This is a recognition of the academic excellence that you have brought to the School of Nursing, your commitment to service, and your leadership that we anticipate will continue throughout your professional career.” 

    The keynote address was delivered by Judith Hahn, Ph.D., RN, executive director of nursing professional practice and education at Yale New Haven Health System. She is also a graduate of the UConn SoN Ph.D. program.  

    “When I say leadership, many of you will think about the boardroom or wearing a managerial badge. But let me be clear, leadership in nursing starts long before the title does, it starts with a mindset, a commitment, a refusal to settle for average,” Hahn stated. “Which brings me to the University of Connecticut women’s basketball team. Both groups are forged in pressure, both are grounded in discipline, and most must be prepared to lead, not someday, but every day.” 

    Allison Villano at the SoN Sigma Theta Tau Mu Chapter 2025 induction ceremony. (Emily Laput)

    In 2025, the induction class consisted of 44 undergraduate students, 20 master’s students, and five doctoral students. Additionally, Sigma Mu Chapter recognized Nancy Dupont, UConn Health’s director of epidemiology, as a nurse leader.  

    “So as a member, I welcome you, as Dean, I want to extend my heartfelt congratulations for your accomplishments, and I also want to say that we are all proud of you as UConn nurses, and we look forward to seeing the many important and meaningful contributions you will make over the course of your career, both as a nurse, and now as a Sigma Honor Society member,” remarked Dickson. 

    2025 Sigma Inductees:

    Undergraduates

    • Skyler Arpin 
    • Michael Asante  
    • Courtney Balerna 
    • Nicole Ballas 
    • Alexa Bartoli 
    • Phoebe Bergstraser 
    • Melanie Bisbee 
    • Maria Bistras 
    • Molly Brett 
    • Kaitlynn Brito Torres 
    • Diamond Bussiere 
    • Abby Card 
    • Julia Cassano 
    • Logan Corey 
    • Katherine DeVito 
    • Sean Flaherty 
    • Tobias Fraedrich 
    • Gillian Fulton 
    • Amy Gabriel 
    • Madison Gaynor 
    • Flavia Heredia 
    • Esme Ho 
    • Khadija Ibrahim 
    • Brianna Iuteri 
    • Teresa Leopold 
    • Vincent Mascoli 
    • Luke Maynard 
    • Molly McElhinney 
    • Christy McEnroe 
    • Rohan Mistry 
    • Hailey Nardelli 
    • Olivia Orphanos 
    • Gifty Osei 
    • Skyler Phan 
    • Emi Rosenthal 
    • Madison Sastram 
    • Sherina Sauveur 
    • Allison Sidell 
    • Nicole Torres 
    • Allison Villano 
    • Daniel Ward 
    • Isabel Whelan 
    • Iris White 
    • Christina Yang

    Master’s Students

    • Brianna Arnold 
    • Brittany Barra 
    • Elizabeth Culbert 
    • Kimberly Davis 
    • Eleanor Dowd 
    • Stephanie Dumas 
    • Hillary Eisenberg 
    • Rachel Gold 
    • Emma Green 
    • Jawal Hage 
    • Nicole Hurler 
    • Kyle Kendall 
    • Paulina Obojski 
    • Pedro Ramirez 
    • Audrey Robertson 
    • Andrea Shirley 
    • Danielle Springer 
    • Emma Sullivan 
    • Salvatrice Tinsley 
    • Megan Wilmoth 

    Doctoral Students

    • Wilfred Elliam – PhD  
    • Laura Karwoski – DNP 
    • Anita Oppong – PhD 
    • Jennifer Pilchik – DNP 
    • Catherine Reilly – DNP 

    Nurse Leader

    • Nancy Dupont 

    MIL OSI USA News –

  • MIL-OSI: UPDATE – Abundance Energy, SOLRITE Energy, and sonnen Develop Residential Battery-Enabled Virtual Power Plants in Texas

    Source: GlobeNewswire (MIL-OSI)

    STONE MOUNTAIN, Ga., May 07, 2025 (GLOBE NEWSWIRE) — Abundance Energy, sonnen, SOLRITE Energy, and Energywell Technology Licensing, LLC (“Energywell”) are joining forces to power the future of energy through the development of behind-the-meter, battery-enabled Virtual Power Plants (“VPP”) in Texas.

    The collaboration empowers Abundance Energy customers to use their sonnenConnect home batteries to support grid stability, ensure reliable energy delivery, and lower electricity costs while driving the development of smart, sustainable energy solutions.

    Enabled by SOLRITE Energy’s innovative virtual power plant purchase agreement (VPA) financing model, participants can install solar panels and sonnen battery systems at no upfront cost, lowering barriers to entry for this VPP program. sonnen and SOLRITE first introduced this novel VPA structure to the Texas market in January 2025.

    Optimized through the integration of Energywell’s Proton platform with sonnen’s advanced control technology, each battery is continuously managed in response to market price signals, customer usage, and solar generation. Networked together, these batteries create a VPP, dynamically balancing energy supply and demand to maximize value for both the grid and the customer. Under the VPA financing model, SOLRITE owns and manages all the customer solar and sonnen energy storage systems and customers in turn receive the benefit of low energy costs and reliable back-up power.

    “Our mission is to empower homeowners with smarter, more sustainable energy solutions,” said Thomas Mandry, CEO of Abundance Energy. “By combining sonnen’s best-in-class battery technology, Energywell’s market expertise through its Proton platform, and SOLRITE’s unique financing model, we are delivering an innovative VPP model that benefits both customers and the Texas grid.”

    sonnen’s VPP technology intelligently manages energy supply and demand, ensuring stored solar or grid energy is strategically deployed when needed most. “Our VPP solutions enable customers to actively participate in the energy market while maintaining resilience in their homes,” said Blake Richetta, Chairman and CEO of sonnen. “With Abundance Energy, SOLRITE, and Energywell, we’re setting a new standard for residential energy management.”

    “At SOLRITE, we believe financial innovation is key to unlocking the full potential of distributed energy,” said Regan George, CEO of SOLRITE Energy. “By eliminating upfront costs for solar and battery installations, we enable more homeowners to participate in this VPP program, delivering clean, reliable power to customers and adding value to the grid.”

    Energywell’s Proton platform provides advanced forecasting and optimization tools to ensure batteries are dispatched in alignment with market opportunities. “The Texas energy landscape is evolving, and this partnership exemplifies the future of distributed energy,” said Michael Fallquist, CEO of Energywell. “By optimizing stored energy, we are reducing reliance on fossil fuels and lowering carbon emissions, building a smarter, cleaner, and more flexible grid.”

    This VPP initiative aligns with Texas’ growing demand for resilient, customer-driven energy solutions and paves the way for further innovation in the residential energy sector.

    About SOLRITE

    SOLRITE Energy is a clean energy financing company pioneering new ways to make solar and battery storage accessible to homeowners. Its flagship Virtual Power Plant Power Purchase Agreement (VPA), developed with sonnen, provides solar panels and home battery systems at no upfront cost in exchange for a low, fixed energy rate. By partnering with retail electric providers and technology companies, SOLRITE makes sustainable energy solutions accessible while supporting grid reliability. Visit solriteenergy.com for more information.

    About Abundance Energy

    Abundance Energy is a digital-native Retail Electric Provider (REP) startup licensed for operations in Texas. Abundance’s products include transparent fixed-rate residential plans and multi-meter Continuous Service Agreement plans for vacant property management with a built-to-purpose CSA customer platform. Abundance is part of the Quext family of companies that includes next-generation LoRaWAN proprietary IoT thermostats and smart locks for the multifamily market. Visit abundanceenergy.com for more information.

    About sonnen

    sonnen is one of the world’s leading manufacturers of smart energy storage systems for residential applications, and a pioneer of the residential battery based virtual power plant. The sonnen VPP is nationally recognized as a blueprint for the decentralized, digitalized, decarbonized energy system of the future. sonnen is one of the most experienced and fastest growing VPP energy storage companies in the world. sonnen has received many internationally recognized awards celebrating our technological achievement. sonnen products and services are used by the sonnenCommunity, a collection of visionaries around the world who share our vision of clean and affordable energy for everyone. In Texas, sonnen partners with SOLRITE Energy to bring their flagship Virtual Power Plant Power Purchase Agreement (VPA), to provide solar panels and home battery systems at no upfront cost.

    sonnen’s offices are located in Germany, Italy, Spain, Australia, and the USA. sonnen is a wholly owned subsidiary of Shell. Learn more at: https://sonnenusa.com/en

    About Energywell

    Energywell is an energy technology company powering the sustainable energy transition. Energywell combines the financial strength of funds managed by Oaktree Capital Management, L.P. and capital and commodities expertise from Hartree Partners L.P. with proprietary technology and a seasoned team of energy industry veterans. Visit Energywell.com for more information.

    About Proton

    Energywell’s Proton platform delivers real-time energy insights and seamless device integration, empowering businesses and customers to optimize energy more sustainably. Proton uses cloud-native, event-driven architecture to ensure energy solutions scale quickly while maintaining the highest standards of security, including SOC 2 Type 2 compliance. Proton is available for licensing for third parties looking to accelerate their own energy management capabilities. Visit Energywell.com for more information.

    Media contact:

    FischTank PR

    sonnen@fischtankpr.com

    The MIL Network –

  • MIL-OSI Australia: Active travel boost for the ACT

    Source: Northern Territory Police and Fire Services

    Our CBR is the ACT Government’s key channel to connect with Canberrans and keep you up-to-date with what’s happening in the city. Our CBR includes a monthly print edition, email newsletter and website.

    You can easily opt in or out of the newsletter subscription at any time.

    MIL OSI News –

  • MIL-OSI Australia: Free waste disposal options in Canberra

    Source: Northern Territory Police and Fire Services

    You can dispose of e-waste at either Mugga Lane or Mitchell resource management centre.

    In brief:

    • Many household items cannot go in your kerbside bins.
    • There are ways to dispose of these free of charge – even if they are large.
    • This article outlines how you can do this.

    Do you have old household items sitting around that can’t go in your kerbside bins?

    You may not know of the free services you can take advantage of, to declutter your home and save money in the process.

    Free drop-off at resource management centres

    If you’d rather get rid of things yourself, you may be able to drop them to a resource management centre for free.

    Canberra has two resource management centres:

    Both locations are open 7:30am– 5:00pm, seven days a week. They are closed on Good Friday and Christmas Day.

    When dropping your items at the resource management centres, please ensure they are sorted and clearly identifiable.

    There will be a charge for mixed loads which are not easily visible.

    Batteries and items with built-in batteries

    Plenty of household items cannot go in kerbside bins. Batteries, for example, are classed as hazardous waste and can cause fires if disposed of incorrectly.

    There are  many options to dispose of them.

    You can take your batteries and devices with built-in batteries – including damaged or fire affected batteries – to the hazardous waste collection area at either the Mugga Lane or Mitchell resource management centres.

    There are also over 50 B-cycle drop off points for household batteries located around Canberra.

    Find out more about where to drop off batteries.

    Other hazardous waste

    You can also drop off small amounts of other hazardous waste for free. Look out for the hazardous waste collection area at either Mugga Lane or Mitchell resource management centres.

    You can dispose of:

    • liquid hazardous waste, such as aerosol cans (full), caustic materials, household cleaning agents, cooking oils, household pesticides, photographic chemicals, domestic poisons, domestic pool chemicals
    • helium party balloon cylinders
    • fire extinguishers
    • gas bottles
    • paint (see the paintback website for more information)
    • fluorescent tubes (including compact fluorescent tubes and bulbs)
    • automotive fuels.

    Electronic waste (e-waste)

    You can dispose of e-waste, such as computers and laptops, televisions, tablets, mobile phones, printers and gaming consoles, at either Mugga Lane or Mitchell resource management centres.

    There is a limit of 15 items per person (a keyboard, mouse and monitor equals one item).

    You can also dispose of electrical appliances such as kettles, microwaves, toasters, hairdryers, coffee machines, irons and fans for free.

    White goods

    You don’t need to pay to take white goods to either Mugga Lane or Mitchell resource management centres. White goods include items such as fridges, freezers, clothes dryers, washing machines, dishwashers and ovens.

    It’s also worth noting ActewAGL offers a fridge buyback program. Working fridges can be collected for recycling and a $30 rebate applied to the account holder’s electricity account.

    Green waste

    Green waste bin overloaded? You can take your excess green waste to Corkhill Bros for free. This is located at Mugga Lane only.

    Fees apply to oversized (branches or trees larger than 20cm in diameter and/or two metres in length) residential and commercial green waste.

    Find out more about your green waste disposal options.

    Household recycling

    Household recycling can be dropped off for free at the Mugga Lane resource management centre or one of the five recycling drop off centres located at Mitchell, Gungahlin, Belconnen, Woden and Tuggeranong. You can take:

    • paper
    • cardboard
    • glass bottles and jars
    • aluminium and steel cans
    • plastic bottles and containers.

    Corflute signs

    Corflute signs are accepted for free at the corflute collection bins at Mitchell and Mugga Lane resource management centres.

    Please remove any paper, glue, plastic ties, stakes and metal from the signs.

    Find out more about what is accepted at the resource management centres, and how much you can dispose of.

    Give your items a new life

    Remember, if your items can be reused, you may be able to drop them off for free at Goodies Junction – located at both Mitchell and Mugga Lane resource management centres.

    Find out what can be donated to Goodies Junction.

    Still unsure about something? Check out ACT City Services’ A-Z guide to waste and recycling to see what can go where.

    Read more like this

    Get ACT news and events delivered straight to your inbox, sign up to our email newsletter:


    MIL OSI News –

  • MIL-OSI Security: Sixth meeting of the Community of Interest of Intelligence and Security-Related Centres of Excellence

    Source: NATO

    Brussels, NATO HQ, 5 May 2025 – The Joint Intelligence and Security Division (JISD) held its annual meeting with experts gathering from NATO’s intelligence and security-related Centres of Excellence (COEs) and the NATO Intelligence Enterprise (NIE). The annual meeting focusses on areas of common interests and best practices in order to further the intelligence capabilities of the Alliance.

    NATO’s Deputy Assistant Secretary General for Intelligence, Major General Paul Lynch, opened the meeting by emphasising that “today, the NIE is better postured than ever to support the Allied decision-making on contemporary and future challenges.” He also acknowledged that “the effectiveness of our deterrence and defence posture relies precisely on NATO’s ability to adapt to an ever-changing world. And this is particularly true for Intelligence and Security.” 

    The very productive meeting, attended by participants from 7 COEs, ACT and NATO HQ, was split into three sessions, with the first being briefs and discussions about COEs’ initiatives. The second session highlighted innovation-related activities, with each COE providing agile and insightful ideas to foster innovation. The final session was open to NATO intelligence providers, Partners and Allied industries, with an in-depth discussion about the future of intelligence. 

    Sharing adaptive and impactful intelligence initiatives has become even more critical due to the rapidly changing global security environment. The meeting of NATO’s COEs and the NIE remains crucial to prepare the Alliance for the challenges of today and tomorrow, with COEs as essential actors in providing the Alliance with important information for its current and future posture. COEs act as a force multiplier, offering expertise across their four core tasks: exercise and evaluation, analysis and lessons learned, doctrine development and standardisation, and concept development and experimentation.

    MIL Security OSI –

  • MIL-OSI: BFCM Communiqué de mise à disposition des Final Terms de l’émission séries 586 tranche 1

    Source: GlobeNewswire (MIL-OSI)

    Paris, le 7 mai 2025

    Communiqué information réglementée

    Communiqué précisant les modalités de mise à disposition des Final Terms de l’émission de la BFCM séries 586 tranche 1.

    La Banque Fédérative du Crédit Mutuel informe que ce document est à la disposition du public sur le site de l’émetteur à l’adresse suivante :

    https://www.bfcm.creditmutuel.fr/en/programs/standard.html

    Des exemplaires de ce document sont disponibles, sans frais auprès de l’émetteur :
    https://www.bfcm.creditmutuel.fr/fr/informations/contact.html

    Contact Relation Investisseurs
    Banque Fédérative du Crédit Mutuel: Sandrine Cao Dac Viola :  BFCM-WEB@bfcm.creditmutuel.fr

    Attachment

    The MIL Network –