Category: Commerce

MIL-OSI: Oportun Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

GAAP Net income of $9.8 million increased $36 million year-over-year

GAAP EPS of $0.21 increased $0.89 year-over-year

Adjusted EPS of $0.40 increased $0.31 year-over-year

Operating expenses of $93 million reduced 15% year-over-year

Reiterating full year 2025 credit performance and profit expectations

SAN CARLOS, Calif., May 08, 2025 (GLOBE NEWSWIRE) — Oportun Financial Corporation (Nasdaq: OPRT) (“Oportun”, or the “Company”) today reported financial results for the first quarter ended March 31, 2025.

“We started 2025 with a strong first quarter, building on the momentum from last year. I’m pleased to report our second consecutive quarter of GAAP profitability, with net income increasing by $36 million year-over-year,” said Raul Vazquez, CEO of Oportun. “We’ve also delivered profitability on an adjusted basis for the fifth consecutive quarter, with Adjusted Net Income up $15 million year-over-year. Our Return on Equity (ROE) improved to 11%, while our Adjusted ROE also improved by 17 percentage points, to 21%. We maintained strong cost discipline, reducing quarterly operating expenses by 15% year-over-year during the quarter. In addition, credit continued to perform well, with 30-plus day delinquencies and dollar net-charge-offs declining year-over-year for the fifth and sixth consecutive quarters, respectively. Given the current macroeconomic uncertainty, we are prudently moderating our expectations for full year loan originations growth from the 10% to 15% range, to approximately 10%. Factoring in both this adjustment and our Q1 outperformance, we’re reiterating our full year 2025 Adjusted EPS guidance of $1.10 to $1.30 per share, implying growth of 53% to 81%.

First Quarter 2025 Results

Metric	GAAP		Adjusted¹
	1Q25	1Q24	1Q25	1Q24
Total revenue²	$236	$250
Net income (loss)	$9.8	$(26)	$19	$3.6
Diluted EPS	$0.21	$(0.68)	$0.40	$0.09
Adjusted EBITDA			$34	$1.9
Dollars in millions, except per share amounts.
¹See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures.
²1Q24 total revenue includes $11 million from the credit cards receivable portfolio which was sold in November 2024.

Business Highlights

Aggregate Originations were $469 million, a 39% increase compared to $338 million in the prior-year quarter
Portfolio Yield was 33.0%, an increase of 49 basis points compared to 32.5% in the prior-year quarter
Owned Principal Balance at end-of-period was $2.7 billion, a decrease of 3% compared to $2.8 billion in the prior-year quarter
Annualized Net Charge-Off Rate of 12.2%, an increase of 16 basis points compared to 12.0% in the prior-year quarter; dollar Net Charge-Offs declined 5% year-over-year, marking the sixth consecutive quarterly decrease
30+ Day Delinquency Rate of 4.7%, a decrease of 56 basis points compared to 5.2% for the prior-year quarter; fifth consecutive quarterly decline

Financial and Operating Results

All figures are as of or for the quarter ended March 31, 2025, unless otherwise noted.

Operational Drivers

Originations – Aggregate Originations for the first quarter were $469 million, an increase of 39% compared to $338 million in the prior-year quarter, as the Company grew originations year-over-year for the second consecutive quarter. Management currently expects full year 2025 Aggregate Originations growth in the 10% range.

Portfolio Yield – Portfolio Yield for the first quarter was 33.0%, an increase of 49 basis points as compared to 32.5% in the prior-year quarter, primarily attributable to increased pricing on loans.

Financial Results

Revenue – Total revenue for the first quarter was $236 million, a decrease of 6% as compared to $250 million in the prior-year quarter. The decline was primarily due to the absence of $11 million of revenue from the credit cards receivable portfolio which was sold in November 2024. Net revenue for the first quarter was $106 million, a 34% increase compared to net revenue of $79 million in the prior-year quarter, as reduced fair value marks and net charge-offs more than offset the total revenue decline and higher interest expense.

Operating Expense and Adjusted Operating Expense – For the first quarter, total operating expense was $93 million, a decrease of 15% as compared to $110 million in the prior-year quarter. The decrease is attributable to a combined set of cost reduction initiatives enacted during the last year. The Company continues to expect full year 2025 operating expenses of approximately $390 million, averaging $97.5 million a quarter for a 5% reduction from full year 2024. Adjusted Operating Expense, which excludes stock-based compensation expense and certain non-recurring charges, decreased 13% year-over-year to $89 million.

Net Income (Loss) and Adjusted Net Income (Loss) – Net income was $9.8 million as compared to a net loss of $26 million in the prior-year quarter. The increased profitability was attributable to expense reduction initiatives, and increased net revenue driven by reduced fair value mark-to-market impact and improved credit performance. Adjusted Net Income was $19 million as compared to $3.6 million in the prior-year quarter. The increase in Adjusted Net Income was also driven by reduced operating expenses, along with improved credit performance.

Earnings (Loss) Per Share and Adjusted EPS – GAAP earnings per share, basic and diluted, were both $0.21 during the first quarter, compared to GAAP net loss per share, basic and diluted of $0.68 in the prior-year quarter. Adjusted Earnings Per Share was $0.40 as compared to $0.09 in the prior-year quarter.

Adjusted EBITDA – Adjusted EBITDA was $34 million, up from $1.9 million in the prior-year quarter, driven by the cost reduction initiatives enacted during the last year along with improved credit performance.

Credit and Operating Metrics

Net Charge-Off Rate – The Annualized Net Charge-Off Rate for the quarter was 12.2%, compared to 12.0% for the prior-year quarter. Net Charge-offs in dollars for the quarter were down 5% to $81 million, compared to $85 million for the prior-year quarter.

30+ Day Delinquency Rate – The Company’s 30+ Day Delinquency Rate was 4.7% at the end of the quarter, compared to 5.2% at the end of the prior-year quarter.

Following the first quarter, the Company’s 30+ Day Delinquency Rate declined to 4.5% at the end of April.

Operating Expense Ratio and Adjusted Operating Expense Ratio – Operating Expense Ratio for the quarter was 13.9% as compared to 15.5% in the prior-year quarter, a 157 basis points improvement. Adjusted Operating Expense Ratio was 13.3% as compared to 14.3% in the prior-year quarter, a 102 basis points improvement. The Adjusted Operating Expense Ratio excludes stock-based compensation expense and certain non-recurring charges. The improvement in Adjuste d Operating Expense Ratio is primarily attributable to the Company’s focus on reducing operating expenses, partially offset by a decrease in Average Daily Principal Balance including the impact from the sale of the credit cards receivable portfolio in November 2024.

Return On Equity (“ROE”) and Adjusted ROE – ROE for the quarter was 11%, as compared to (27)% in the prior-year quarter. The improvement was attributable to the increase in net income. Adjusted ROE for the quarter was 21%, as compared to 4% in the prior-year quarter.

Secured Personal Loans

As of March 31, 2025, the Company had a secured personal loan receivables balance of $178 million, up from $112 million at the end of the first quarter of 2024. Oportun currently offers secured personal loans in California, Texas, Florida, Arizona, New Jersey and Illinois. During the full year 2024, secured personal loans losses ran approximately 500 basis points lower compared to unsecured personal loans. Furthermore, secured personal loans originated during the first quarter are expected to generate approximately twice the revenue per loan compared to unsecured personal loans, primarily due to higher average loan sizes.

Funding and Liquidity

As of March 31, 2025, total cash was $231 million, consisting of cash and cash equivalents of $79 million and restricted cash of $152 million. Cost of Debt and Debt-to-Equity were 8.2% and 7.6x, respectively, for and at the end of the first quarter 2025 as compared to 7.5% and 7.3x, respectively, for and at the end of the prior-year quarter. As of March 31, 2025, the Company had $317 million of undrawn capacity on its existing $766 million personal loan warehouse lines. The Company’s personal loan warehouse lines are committed through September 2027 and August 2028.

Financial Outlook for Second Quarter and Full Year 2025

Oportun is providing the following guidance for 2Q 2025 and full year 2025 as follows:

	2Q 2025	Full Year 2025
Total Revenue	$237 – $242M	$945 – $970M
Annualized Net Charge-Off Rate	11.90% +/- 15 bps	11.5% +/- 50 bps
Adjusted EBITDA¹	$29 – $34M	$135 – $145M
Adjusted Net Income¹	—	$53 – $63M
Adjusted EPS¹	—	$1.10 – $1.30
GAAP Net Income	—	GAAP Profitable


¹ See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Forward Looking Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures.

Paul Appleton, Treasurer and Head of Capital Markets, serving as interim Chief Financial Officer

As previously indicated in a March 17th 2025 Form 8-K filing, Paul Appleton, the Company’s Treasurer and Head of Capital Markets, began serving as interim Chief Financial Officer on March 28th, 2025. Mr. Appleton’s appointment followed Jonathan Coblentz’ retirement as the Company’s Chief Financial Officer and he is expected to serve in this interim role until the search for Mr. Coblentz’ successor is completed. With the assistance of a leading executive search firm, the Company has identified and engaged with several highly qualified candidates in connection with its search process for a permanent chief financial officer.

Conference Call

As previously announced, Oportun’s management will host a conference call to discuss first quarter 2025 results at 5:00 p.m. ET (2:00 p.m. PT) today. A live webcast of the call will be accessible from the Investor Relations page of Oportun’s website at https://investor.oportun.com. The dial-in number for the conference call is 1-888-396-8049 (toll-free) or 1-416-764-8646 (international). Participants should call in 10 minutes prior to the scheduled start time. Both the call and webcast are open to the general public. For those unable to listen to the live broadcast, a webcast replay of the call will be available at https://investor.oportun.com for one year. A file that includes supplemental financial information and reconciliations of certain non-GAAP measures to their most directly comparable GAAP measures, will be available on the Investor Relations page of Oportun’s website at https://investor.oportun.com following the conference call.

About Non-GAAP Financial Measures

This press release presents information about the Company’s Adjusted Net Income (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted Operating Expense, Adjusted Operating Expense Ratio, and Adjusted ROE, all of which are non-GAAP financial measures provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes these non-GAAP measures can be useful measures for period-to-period comparisons of its core business and provide useful information to investors and others in understanding and evaluating its operating results. Non-GAAP financial measures are provided in addition to, and not as a substitute for, and are not superior to, financial measures calculated in accordance with GAAP. In addition, the non-GAAP measures the Company uses, as presented, may not be comparable to similar measures used by other companies. Reconciliations of non-GAAP to GAAP measures can be found below.

About Oportun

Oportun (Nasdaq: OPRT) is a mission-driven financial services company that puts its members’ financial goals within reach. With intelligent borrowing, savings, and budgeting capabilities, Oportun empowers members with the confidence to build a better financial future. Since inception, Oportun has provided more than $20.3 billion in responsible and affordable credit, saved its members more than $2.4 billion in interest and fees, and helped its members set aside an average of more than $1,800 annually. For more information, visit Oportun.com.

Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements as to future performance, results of operations and financial position; achievement of the Company’s strategic priorities and goals; expectations regarding the Company’s interim CFO; the Company’s expectations regarding macroeconomic conditions; the Company’s profitability and future growth opportunities including expected revenue growth in connection with increasing originations; the effect of and trends in fair value mark-to-market adjustments on the Company’s loan portfolio and asset-backed notes; the Company’s second quarter and full year 2025 outlook; the Company’s expectations regarding Adjusted EPS in full year 2025; the Company’s expectations related to future profitability on an adjusted basis, and the plans and objectives of management for our future operations, are forward-looking statements. These statements can be generally identified by terms such as “expect,” “plan,” “goal,” “target,” “anticipate,” “assume,” “predict,” “project,” “outlook,” “continue,” “due,” “may,” “believe,” “seek,” or “estimate” and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as “will,” “should,” “would,” “likely” and “could.” These forward-looking statements speak only as of the date on which they are made and, except to the extent required by federal securities laws, Oportun disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements. These statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause Oportun’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Oportun has based these forward-looking statements on its current expectations and projections about future events, financial trends and risks and uncertainties that it believes may affect its business, financial condition and results of operations. These risks and uncertainties include those risks described in Oportun’s filings with the Securities and Exchange Commission, including Oportun’s most recent annual report on Form 10-K, and include, but are not limited to, Oportun’s ability to retain existing members and attract new members; Oportun’s ability to accurately predict demand for, and develop its financial products and services; the effectiveness of Oportun’s A.I. model; macroeconomic conditions, including fluctuating inflation and market interest rates; increases in loan non-payments, delinquencies and charge-offs; Oportun’s ability to increase market share and enter into new markets; Oportun’s ability to realize the benefits from acquisitions and integrate acquired technologies; the risk of security breaches or incidents affecting the Company’s information technology systems or those of the Company’s third-party vendors or service providers; Oportun’s ability to successfully offer loans in additional states; Oportun’s ability to compete successfully with other companies that are currently in, or may in the future enter, its industry; and changes in Oportun’s ability to obtain additional financing on acceptable terms or at all.

Contacts

Investor Contact
Dorian Hare
(650) 590-4323
ir@oportun.com

Media Contact
Michael Azzano
Cosmo PR for Oportun
(415) 596-1978
michael@cosmo-pr.com

Oportun and the Oportun logo are registered trademarks of Oportun, Inc.


Oportun Financial Corporation CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except share and per share data, unaudited)

	Three Months Ended March 31,
		2025			2024
Revenue
Interest income	$	220.2		$	230.6
Non-interest income		15.7			19.9
Total revenue		235.9			250.5
Less:
Interest expense		57.4			54.5
Net decrease in fair value		(72.7	)		(116.9	)
Net revenue		105.8			79.2

Operating expenses:
Technology and facilities		36.4			47.1
Sales and marketing		19.9			16.0
Personnel		21.0			24.5
Outsourcing and professional fees		8.0			10.2
General, administrative and other		7.4			11.8
Total operating expenses		92.7			109.6

Income (loss) before taxes		13.2			(30.5	)
Income tax expense (benefit)		3.4			(4.0	)
Net income (loss)	$	9.8		$	(26.4	)

Diluted Earnings (Loss) per Common Share	$	0.21		$	(0.68	)
Diluted Weighted Average Common Shares		47,037,799			38,900,876

Note: Numbers may not foot or cross-foot due to rounding.


Oportun Financial Corporation CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, unaudited)

	March 31,			December 31,
		2025			2024
Assets
Cash and cash equivalents	$	78.5		$	60.0
Restricted cash		152.4			154.7
Loans receivable at fair value		2,770.5			2,778.5
Capitalized software and other intangibles		81.9			86.6
Right of use assets – operating		9.3			9.8
Other assets		133.6			137.6
Total assets	$	3,226.3		$	3,227.1

Liabilities and stockholders’ equity
Liabilities
Secured financing	$	445.5		$	535.5
Asset-backed notes at fair value		863.9			1,080.7
Asset-backed borrowings at amortized cost		1,281.3			984.3
Acquisition and corporate financing		199.7			203.8
Lease liabilities		16.1			18.2
Other liabilities		53.8			50.9
Total liabilities		2,860.2			2,873.3
Stockholders’ equity
Common stock		—			—
Common stock, additional paid-in capital		615.2			612.6
Accumulated deficit		(242.8	)		(252.5	)
Treasury stock		(6.3	)		(6.3	)
Total stockholders’ equity		366.1			353.8
Total liabilities and stockholders’ equity	$	3,226.3		$	3,227.1

Note: Numbers may not foot or cross-foot due to rounding.


Oportun Financial Corporation CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions, unaudited)

	Three Months Ended March 31,
		2025			2024
Cash flows from operating activities
Net income (loss)	$	9.8		$	(26.4	)
Adjustments for non-cash items		83.2			128.2
Proceeds from sale of loans in excess of originations of loans sold and held for sale		3.0			1.1
Changes in balances of operating assets and liabilities		4.9			(17.0	)
Net cash provided by operating activities		101.0			85.9

Cash flows from investing activities
Net loan principal repayments (loan originations)		(49.7	)		38.3
Proceeds from loan sales originated as held for investment		—			1.4
Capitalization of system development costs		(5.6	)		(3.1	)
Other, net		(0.2	)		(0.1	)
Net cash provided by (used in) investing activities		(55.5	)		36.5

Cash flows from financing activities
Borrowings		745.4			260.3
Repayments		(774.0	)		(391.8	)
Net stock-based activities		(0.5	)		(0.2	)
Net cash used in financing activities		(29.1	)		(131.8	)

Net increase (decrease) in cash and cash equivalents and restricted cash		16.3			(9.5	)
Cash and cash equivalents and restricted cash beginning of period		214.6			206.0
Cash and cash equivalents and restricted cash end of period	$	231.0		$	196.6

Note: Numbers may not foot or cross-foot due to rounding.


Oportun Financial Corporation CONSOLIDATED KEY PERFORMANCE METRICS (unaudited)

	Three Months Ended March 31,
Key Financial and Operating Metrics	2025			2024
Aggregate Originations (Millions)	$	469.4		$	338.2
Portfolio Yield (%)		33.0	%		32.5	%
30+ Day Delinquency Rate (%)		4.7	%		5.2	%
Annualized Net Charge-Off Rate (%)		12.2	%		12.0	%

Other Metrics
Managed Principal Balance at End of Period (Millions)	$	2,955.0		$	3,027.5
Owned Principal Balance at End of Period (Millions)	$	2,659.4		$	2,752.4
Average Daily Principal Balance (Millions)	$	2,705.2		$	2,851.7

Note: Numbers may not foot or cross-foot due to rounding.

Oportun Financial Corporation
ABOUT NON-GAAP FINANCIAL MEASURES
(unaudited)

This press release dated May 8, 2025 contains non-GAAP financial measures. The following tables reconcile the non-GAAP financial measures in this press release to the most directly comparable financial measures prepared in accordance with GAAP.

The Company believes that the provision of these non-GAAP financial measures can provide useful measures for period-to-period comparisons of Oportun’s core business and useful information to investors and others in understanding and evaluating its operating results. However, non-GAAP financial measures are not calculated in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.

Adjusted EBITDA

The Company defines Adjusted EBITDA as net income, adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted EBITDA is an important measure because it allows management, investors and its board of directors to evaluate and compare operating results, including return on capital and operating efficiencies, from period to period by making the adjustments described below. In addition, it provides a useful measure for period-to-period comparisons of Oportun’s business, as it removes the effect of income taxes, certain non-cash items, variable charges and timing differences.

The Company believes it is useful to exclude the impact of income tax expense, as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations.
The Company believes it is useful to exclude depreciation and amortization and stock-based compensation expense because they are non-cash charges.
The Company believes it is useful to exclude the impact of interest expense associated with the Company’s corporate financing facilities, including the senior secured term loan and the residual financing facility, as it views this expense as related to its capital structure rather than its funding.
The Company excludes the impact of certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges because it does not believe that these items reflect ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, debt amendment and warrant amortization costs related to our corporate financing facilities.
The Company also excludes fair value mark-to-market adjustments on its loans receivable portfolio and asset-backed notes carried at fair value because these adjustments do not impact cash.

Adjusted Net Income

The Company defines Adjusted Net Income as net income adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted Net Income is an important measure of operating performance because it allows management, investors, and the Company’s board of directors to evaluate and compare its operating results, including return on capital and operating efficiencies, from period to period, excluding the after-tax impact of non-cash, stock-based compensation expense and certain non-recurring charges.

The Company believes it is useful to exclude the impact of income tax expense (benefit), as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations. The Company also includes the impact of normalized income tax expense by applying a normalized statutory tax rate.
The Company believes it is useful to exclude the impact of certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges because it does not believe that these items reflect its ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, debt amendment and warrant amortization costs related to our corporate financing facilities.
The Company believes it is useful to exclude stock-based compensation expense because it is a non-cash charge.
The Company also excludes the fair value mark-to-market adjustment on its asset-backed notes carried at fair value to align with the 2023 accounting policy decision to account for new debt financings at amortized cost.

Adjusted Operating Expense and Adjusted Operating Expense Ratio

The Company defines Adjusted Operating Expense as total operating expenses adjusted to exclude stock-based compensation expense and certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges. Other non-recurring charges include litigation reserve, impairment charges, and debt amendment costs related to our Corporate Financing facility. The Company defines Adjusted Operating Expense Ratio as Adjusted Operating Expense divided by Average Daily Principal Balance. The Company believes Adjusted Operating Expense is an important measure because it allows management, investors and Oportun’s board of directors to evaluate and compare its operating costs from period to period, excluding the impact of non-cash, stock-based compensation expense and certain non-recurring charges. The Company believes Adjusted Operating Expense Ratio is an important measure because it allows management, investors and Oportun’s board of directors to evaluate how efficiently the Company is managing costs relative to revenue and Average Daily Principal Balance.

Adjusted Return on Equity
The Company defines Adjusted Return on Equity (“ROE”) as annualized Adjusted Net Income divided by average stockholders’ equity. Average stockholders’ equity is an average of the beginning and ending stockholders’ equity balance for each period. The Company believes Adjusted ROE is an important measure because it allows management, investors and its board of directors to evaluate the profitability of the business in relation to its stockholders’ equity and how efficiently it generates income from stockholders’ equity.

Adjusted EPS
The Company defines Adjusted EPS as Adjusted Net Income divided by weighted average diluted shares outstanding.


Oportun Financial Corporation RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, unaudited)

	Three Months Ended March 31,
Adjusted EBITDA		2025			2024
Net income (Loss)	$	9.8		$	(26.4	)
Adjustments:
Income tax expense (benefit)		3.4			(4.0	)
Interest on corporate financing		9.7			13.9
Depreciation and amortization		11.1			13.2
Stock-based compensation expense		2.8			4.0
Workforce optimization expenses		(0.1	)		0.8
Other non-recurring charges		1.8			3.5
Fair value mark-to-market adjustment		(4.9	)		(3.0	)
Adjusted EBITDA	$	33.5		$	1.9

	Three Months Ended March 31,
Adjusted Net Income	2025			2024
Net income (Loss)	$	9.8		$	(26.4	)
Adjustments:
Income tax expense (benefit)		3.4			(4.0	)
Stock-based compensation expense		2.8			4.0
Workforce optimization expenses		(0.1	)		0.8
Other non-recurring charges		1.8			3.5
Mark-to-market adjustment on ABS notes		7.9			27.1
Adjusted income before taxes		25.5			5.0
Normalized income tax expense		6.9			1.3
Adjusted Net Income (Loss)	$	18.6		$	3.6

Stockholders’ equity	$	366.1		$	382.0
GAAP ROE		11.0	%	(27.0		)%
Adjusted ROE (%) ⁽¹⁾		21.0	%		3.7	%

Note: Numbers may not foot or cross-foot due to rounding.
⁽¹⁾ Calculated as Adjusted Net Income (Loss) divided by average stockholders’ equity.


Oportun Financial Corporation RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, unaudited)

	Three Months Ended March 31,
Adjusted Operating Expense Ratio	2025			2024
OpEx Ratio		13.9	%		15.5	%

Total Operating Expense	$	92.7		$	109.6
Adjustments:
Stock-based compensation expense		(2.8	)		(4.0	)
Workforce optimization expenses		0.1			(0.8	)
Other non-recurring charges		(1.0	)		(3.1	)
Total Adjusted Operating Expense	$	88.9		$	101.7

Average Daily Principal Balance	$	2,705.2		$	2,851.7

Adjusted OpEx Ratio		13.3	%		14.3	%

Note: Numbers may not foot or cross-foot due to rounding.


Oportun Financial Corporation RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except share and per share data, unaudited)

	Three Months Ended March 31,
GAAP Earnings (loss) per Share		2025		2024
Net income (loss)	$	9.8	$	(26.4	)
Net income (loss) attributable to common stockholders	$	9.8	$	(26.4	)

Basic weighted-average common shares outstanding		45,496,705		38,900,876
Weighted average effect of dilutive securities:
Stock options		—		—
Restricted stock units		1,541,094		—
Diluted weighted-average common shares outstanding		47,037,799		38,900,876

Earnings (loss) per share:
Basic	$	0.21	$	(0.68	)
Diluted	$	0.21	$	(0.68	)

	Three Months Ended March 31,
Adjusted Earnings (loss) Per Share		2025		2024
Diluted earnings (loss) per share	$	0.21	$	(0.68	)

Adjusted Net Income	$	18.6	$	3.6

Basic weighted-average common shares outstanding		45,496,705		38,900,876
Weighted average effect of dilutive securities:
Stock options		—		—
Restricted stock units		1,541,094		435,763
Diluted adjusted weighted-average common shares outstanding		47,037,799		39,336,639

Adjusted Earnings (loss) Per Share	$	0.40	$	0.09

Note: Numbers may not foot or cross-foot due to rounding.


Oportun Financial Corporation RECONCILIATION OF FORWARD LOOKING NON-GAAP FINANCIAL MEASURES (in millions, unaudited)

	2Q 2025						FY 2025
	Low			High			Low		High
Adjusted EBITDA
Net income	$	3.3	*	$	7.2	*	$	23.2	$	33.4
Adjustments:
Income tax expense (benefit)		0.9			1.9			6.3		9.0
Interest on corporate financing		9.0			9.0			36.5		36.5
Depreciation and amortization		10.7			10.7			41.1		41.1
Stock-based compensation expense		3.7			3.7			13.7		13.7
Other non-recurring charges		1.4			1.4			6.0		6.0
Fair value mark-to-market adjustment	*			*				8.3		5.3
Adjusted EBITDA	$	29.0		$	34.0		$	135.0	$	145.0

*Due to the uncertainty in macroeconomic conditions and quarterly volatility in the fair value mark to market adjustment, we are unable to precisely forecast the fair value mark-to-market adjustments on our loan portfolio and asset-backed notes on a quarterly basis. As a result, while we fully expect there to be a fair value mark-to-market adjustment which could have an impact on GAAP net income (loss), the net income (loss) number shown above assumes no change in the fair value mark-to-market adjustment.

	FY 2025
Adjusted Net Income and Adjusted EPS	Low		High
Net income	$	23.2	$	33.4
Adjustments:
Income tax expense (benefit)		6.3		9.0
Stock-based compensation expense		13.7		13.7
Other non-recurring charges		6.0		6.0
Mark-to-market adjustment on ABS notes		23.5		23.5
Adjusted income before taxes	$	72.6	$	85.6
Normalized income tax expense		19.6		23.1
Adjusted Net Income	$	53.0	$	62.5

Diluted weighted-average common shares outstanding		48.0		48.0

Diluted earnings per share	$	0.48	$	0.70
Adjusted Earnings Per Share	$	1.10	$	1.30

Note: Numbers may not foot or cross-foot due to rounding.

The MIL Network –

May 9, 2025

MIL-OSI: Synaptics Reports Third Quarter Fiscal 2025 Results

Source: GlobeNewswire (MIL-OSI)

Quarterly revenues increased 12% year-over-year, driven by a 43% growth in Core IoT product sales

Q3’25 Financial Results

Revenue of $266.6 million
GAAP gross margin of 43.4%
Non-GAAP gross margin of 53.5%
GAAP loss per share of $0.56
Non-GAAP diluted earnings per share of $0.90
Repurchased approximately 546,000 shares for $37.9 million

SAN JOSE, Calif., May 08, 2025 (GLOBE NEWSWIRE) — Synaptics Incorporated (Nasdaq: SYNA) today reported financial results for its third quarter of fiscal 2025 ended March 29, 2025.

Net revenue for the third quarter of fiscal 2025 was $266.6 million. GAAP net loss for the third quarter of fiscal 2025 was $21.8 million, or a loss of $0.56 per basic share. Non-GAAP net income for the third quarter of fiscal 2025 was $35.3 million, or $0.90 per diluted share.

“We delivered another solid quarter, with revenues increasing by over 12 percent year-over-year, marking our fourth consecutive quarter of year-over-year growth. This momentum was driven by our Core IoT products, which grew 43% year-over-year in the third quarter and accounted for 25% of total sales. Our strategic initiatives in the IoT market continue to gain traction. During the quarter, we launched several new products including Wi-Fi 7 solutions, broad markets devices, and next-generation Touch controllers that strengthen our portfolio and position the company for long-term growth,” said Ken Rizvi, Synaptics’ Interim CEO and Chief Financial Officer.

Business Outlook
Ken Rizvi added, “We remain focused on executing to our technology roadmap and growth initiatives, while staying agile and disciplined as we navigate the current macroeconomic and trade environment. Our balance sheet is strong and we generated over $74 million in cash flow from operations in the third quarter demonstrating the underlying strength in our business. Looking ahead, our fourth quarter guidance reflects improving demand trends, with expectations of both sequential and year-over-year revenue growth. We remain focused on delivering long-term value for our stockholders, customers, and employees.”

The fourth quarter fiscal 2025 outlook information provided below is based on the company’s current estimates and is not a guarantee of future performance. These statements are forward-looking and actual results may differ materially. Refer to the “Cautionary Statement Regarding Forward-Looking Statements” section below for information on the factors that could cause the Company’s actual results to differ materially from these forward-looking statements.

For the fourth quarter of fiscal 2025, the company expects:


	GAAP	Non-GAAP Adjustment	Non-GAAP

Revenue	$280M ± $15M	N/A	N/A

Gross Margin*	42.5 percent ± 2.0 percent	$30M ± $1M	53.5 percent ± 1.0 percent

Operating Expense**	$150M ± $4M	$47M ± $2M	$103M ± $2M

Earnings (loss) per share***	($0.68) ± $0.30	$1.68 ± $0.10	$1.00 ± $0.20

* Projected Non-GAAP gross margin excludes $28.0 to $30.0 million acquisition and integration-related costs and $1.0 million share-based compensation.

** Projected Non-GAAP operating expense excludes $39.0 to $40.0 million in share-based compensation costs, and $6.0 to $9.0 million acquisition and integration related costs.

*** Projected Non-GAAP earnings (loss) per share excludes $1.03 to $1.05 in share-based compensation costs, $0.94 to $0.98 acquisition and integration related costs, and ($0.30) to ($0.34) other non-cash and Non-GAAP tax adjustments.

Earnings Call and Supplementary Materials
The Synaptics third quarter fiscal 2025 teleconference and webcast is scheduled to begin at 2:00 p.m. PT (5:00 p.m. ET), on Thursday, May 8, 2025, during which the company may discuss forward-looking information.

Speaker:

Ken Rizvi, Interim CEO and Chief Financial Officer

To participate on the live call, analysts and investors should pre-register at Synaptics Q3 FY2025 Earnings Call Registration.
https://register-conf.media-server.com/register/BI116ee59c921049ac96b9faa761d08c9c.

Supplementary slides, a copy of the prepared remarks, and a live and archived webcast of the conference call will be accessible from the “Investor Relations” section of the company’s website at https://investor.synaptics.com/.

About Synaptics Incorporated:
Synaptics (Nasdaq: SYNA) is driving innovation in AI at the Edge, bringing AI closer to end users and transforming how we engage with intelligent connected devices, whether at home, at work, or on the move. As a go-to partner for forward-thinking product innovators, Synaptics powers the future with its cutting-edge Synaptics Astra™ AI-Native embedded compute, Veros™ wireless connectivity, and multimodal sensing solutions. We’re making the digital experience smarter, faster, more intuitive, secure, and seamless. From touch, display, and biometrics to AI-driven wireless connectivity, video, vision, audio, speech, and security processing, Synaptics is a force behind the next generation of technology enhancing how we live, work, and play. Follow Synaptics on LinkedIn, X and Facebook, or visit synaptics.com.

Use of Non-GAAP Financial Information
In evaluating its business, Synaptics considers and uses Non-GAAP Net Income, which we define as net income excluding share-based compensation, acquisition-related costs, and certain other non-cash or recurring and non-recurring items the company does not believe are indicative of its core operating performance, as a supplemental measure of operating performance. Non-GAAP Net Income is not a measurement of the company’s financial performance under GAAP and should not be considered as an alternative to GAAP Net Income. The company presents Non-GAAP Net Income because it considers it an important supplemental measure of its performance since it facilitates operating performance comparisons from period to period by eliminating potential differences in net income caused by the existence and timing of share-based compensation charges, acquisition and integration-related costs, restructuring costs, and certain other non-cash or recurring and non-recurring items. Non-GAAP Net Income has limitations as an analytical tool and should not be considered in isolation or as a substitute for the company’s GAAP Net Income. The principal limitations of this measure are that it does not reflect the company’s actual expenses and may thus have the effect of inflating its net income and net income per share as compared to its operating results reported under GAAP. In addition, the company presents components of Non-GAAP Net Income, such as Non-GAAP Gross Margin, Non-GAAP operating expenses and Non-GAAP operating margin, for similar reasons.

As presented in the “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” tables that follow, Non-GAAP Net Income and each of the other Non-GAAP financial measures excludes one or more of the following items:

Acquisition and integration-related costs
Acquisition and integration-related costs primarily consist of:

amortization of purchased intangibles, which include acquired intangibles such as developed technology, customer relationships, trademarks, backlog, licensed technology, patents, and in-process technology when post-acquisition development is determined to be substantively complete;
inventory fair value adjustments affecting the carrying value of inventory acquired in an acquisition;
transitory post-acquisition incentive programs negotiated in connection with an acquired business or designed to encourage post-acquisition retention of key employees; and
legal and consulting costs directly associated with acquisitions, potential acquisitions and refinancing costs, including non-recurring acquisition related costs and services.

These acquisition and integration-related costs are not factored into the company’s evaluation of its ongoing business operating performance or potential acquisitions, as they are not considered as part of the company’s principal operations. Further, the amount of these costs can vary significantly from period to period based on the terms of an earn-out arrangement, revisions to assumptions that went into developing the estimate of the contingent consideration associated with an earn-out arrangement, the size and timing of an acquisition, the lives assigned to the acquired intangible assets, and the maturity of the business acquired. Excluding acquisition related costs from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability and potential earnings volatility associated with purchase accounting and acquisition-related items.

Share-based compensation
Share-based compensation expense relates to employee equity award programs and the vesting of the underlying awards, which includes stock options, deferred stock units, market stock units, performance stock units, phantom stock units and the employee stock purchase plan. Share-based compensation settled with stock, which includes stock options, deferred stock units, market stock units, performance stock units and the employee stock purchase plan, is a non-cash expense, while share-based compensation settled with cash, which includes phantom stock units, is a cash expense. Settlement of all employee equity award programs, whether settled with cash or stock, varies in amount from period to period and is dependent on market forces that are often beyond the company’s control. As a result, the company excludes share-based compensation from its internal operating forecasts and models. The company believes that Non-GAAP measures reflecting adjustments for share-based compensation provide investors with a basis to compare the company’s principal operating performance against the performance of peer companies without the variability created by share-based compensation resulting from the variety of equity-linked compensatory awards used by other companies and the varying methodologies and assumptions used.

Intangible asset impairment charge
Intangible asset impairment charge represents the excess carrying value of an indefinite-lived asset over its fair value. The intangible asset impairment charge is a non-cash charge. The company excludes intangible asset impairment charge from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that Non-GAAP measures, reflecting adjustments for intangible asset impairment charge, provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by the intangible asset impairment charge.

Restructuring costs
Restructuring costs are costs incurred to address cost structure inefficiencies of acquired or existing business operations and consist primarily of employee termination, asset disposal and office closure costs, including the reversal of such costs. As a result, the company excludes restructuring costs from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that Non-GAAP measures reflecting adjustments for restructuring costs provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by restructuring costs designed to address cost structure inefficiencies of acquired or existing business operations.

Site remediation accrual
Site remediation accrual represents an update to the estimated future costs associated with the ongoing planning and remediation of a site contamination project from an acquisition. As we evaluate progress on our ongoing remediation effort and as we work with governmental organizations to update our remediation plan to meet the evolving guidelines, we estimate costs associated with plan revisions to determine if our liability has changed. Excluding the site remediation accrual from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability associated with the site remediation accrual.

Legal settlement accruals and other
Legal settlement accruals and other represent our estimated cost of settling legal claims and any obligations to indemnify a counterparty against third party claims that are unusual or infrequent. As a result, the company will exclude these settlement charges from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that non-GAAP measures reflecting an adjustment for settlement charges provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by unusual or infrequent settlement accruals designed to address non-recurring or non-routine costs.

Loss on early extinguishment of debt
Loss on extinguishment of debt represents a non-cash item based on the difference in the carrying value of the debt and the fair value of the debt when extinguished. Loss on early extinguishment of debt is excluded from Non-GAAP results as it is non-cash. Excluding loss on early extinguishment of debt from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability associated with loss on early extinguishment of debt.

Other non-cash items
Other non-cash items include non-cash amortization of debt discount and issuance costs. These items are excluded from Non-GAAP results as they are non-cash. Excluding other non-cash items from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability associated with other non-cash items.

Non-GAAP tax adjustments
The company forecasts its long-term Non-GAAP tax rate in order to provide investors with improved long-term modeling accuracy and consistency across financial reporting periods by eliminating the effects of certain items in our Non-GAAP net income and Non-GAAP net income per share, including the type and amount of share-based compensation, the taxation of post-acquisition intercompany intellectual property cross-licensing or transfer transactions, and the impact of other acquisition items that may or may not be tax deductible. The company intends to evaluate its long-term Non-GAAP tax rate annually for significant events, including material tax law changes in the major tax jurisdictions in which the company operates, corporate organizational changes related to acquisitions or tax planning opportunities, and substantive changes in our geographic earnings mix.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements related to the company’s current expectations and projections relating to its financial condition, results of operations, including the company’s financial guidance for fourth quarter fiscal 2025, plans, objectives, future performance and business, including the expected benefits from the transaction with Broadcom. Such forward-looking statements may include words such as “expect,” “anticipate,” “intend,” “believe,” “estimate,” “plan,” “target,” “strategy,” “continue,” “may,” “commit,” “will,” “should,” variations of such words, or other words and terms of similar meaning. All forward-looking statements are based upon the company’s current expectations or various assumptions. The company’s expectations and assumptions are expressed in good faith, and the company believes there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those set out in the forward-looking statements, including risks related to macroeconomic uncertainties in the U.S. and globally, including trade tensions, tariffs, supply chain disruptions, and inflation, which may adversely affect our products and those of our customers and suppliers; risks related to the company’s dependence on its solutions for the Core IoT and Enterprise and Automotive product applications market for a substantial portion of its revenue; the volatility of the company’s net revenue from its solutions for Core IoT and Enterprise and Automotive product applications; the company’s dependence on one or more large customers; the company’s exposure to industry downturns and cyclicality in its target markets; the company’s ability to successfully offer product solutions for new markets; the company’s expectations regarding technology and strategic investments and the anticipated timing or benefits thereof; the company’s ability to execute on its cost reduction initiatives and to achieve expected synergies and expense reductions; the company’s ability to maintain and build relationships with its customers; the company’s dependence on third parties to maintain satisfactory manufacturing yields and deliverable schedule; the company’s indemnification obligations for any third party claims; risks related to global and geopolitical tensions, regional instabilities and hostilities (including the conflict in the Middle East), economic volatility, and regulatory changes, including tariff increases, any of which may lead to reduced customer demand, supply chain disruptions, and increased costs, which could require operational adjustments such as reductions in force, adversely affecting our business and results of operations; risks related to the company’s ability to recruit and retain key personnel, particularly during a CEO transition period; the company’s ability to realize anticipated benefits from the transaction with Broadcom, the company’s ability to grow sales and expand into the serviceable wireless market as expected; risks related to our ability to deliver expected financial or strategic benefits from investing in growth while simultaneously returning capital to shareholders through share repurchases; and other risks as identified in the “Risk Factors,” “Management’ Discussion and Analysis of Financial Condition and Results of Operations” and “Business” sections of the company’s most recent Annual Report on Form 10-K and the company’s most recent Quarterly Report on Form 10-Q; and other risks as identified from time to time in the company’s Securities and Exchange Commission reports. For any forward-looking statements contained in this press release, the company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and the company assumes no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.

Synaptics and the Synaptics logo are trademarks of Synaptics in the United States and/or other countries. All other marks are the property of their respective owners.

For more information, please contact:
Munjal Shah
Head of Investor Relations
+1-408-518-7639
munjal.shah@synaptics.com


SYNAPTICS INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited)

	March 2025			June 2024
ASSETS
Current Assets:
Cash and cash equivalents	$	360.4		$	876.9
Short-term investments		61.0			—
Accounts receivable, net		132.0			142.4
Inventories, net		132.9			114.0
Prepaid expenses and other current assets		26.3			29.0
Total current assets		712.6			1,162.3
Property and equipment, net		71.0			75.5
Goodwill		872.3			816.4
Acquired intangibles, net		296.3			288.4
Deferred tax assets		389.0			345.6
Other non-current assets		213.1			136.8
Total assets	$	2,554.3		$	2,825.0
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	90.0		$	87.5
Accrued compensation		46.7			27.4
Other accrued liabilities		110.8			156.3
Current portion of long-term debt		—			6.0
Total current liabilities		247.5			277.2
Long-term debt		834.2			966.9
Other long-term liabilities		85.6			114.1
Total liabilities		1,167.3			1,358.2
Stockholders’ Equity:
Common stock and additional paid-in capital		1,183.2			1,107.1
Treasury stock		(990.8	)		(878.0	)
Retained earnings		1,194.6			1,237.7
Total stockholders’ equity		1,387.0			1,466.8
Total liabilities and stockholders’ equity	$	2,554.3		$	2,825.0

SYNAPTICS INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) (Unaudited)

	Three Months Ended						Nine Months Ended
	March						March
		2025			2024			2025			2024
Net revenue	$	266.6		$	237.3		$	791.5		$	712.0
Cost of revenue		150.8			127.0			432.6			385.6
Gross margin		115.8			110.3			358.9			326.4
Operating expenses:
Research and development		88.6			83.4			253.2			251.9
Selling, general, and administrative		34.7			40.5			134.2			122.5
Acquired intangibles amortization (1)		4.5			4.0			12.1			13.4
Intangible asset impairment charges (2)		13.8			—			13.8			—
Restructuring costs (3)		0.5			(0.2	)		15.5			9.1
Total operating expenses		142.1			127.7			428.8			396.9
Operating loss		(26.3	)		(17.4	)		(69.9	)		(70.5	)
Interest and other expense, net		(1.1	)		(5.9	)		(11.3	)		(17.4	)
Loss on early extinguishment of debt		—			—			(6.5	)		—
Loss before benefit from income taxes		(27.4	)		(23.3	)		(87.7	)		(87.9	)
Benefit from income taxes		(5.6	)		(5.2	)		(44.6	)		(5.2	)
Net loss	$	(21.8	)	$	(18.1	)	$	(43.1	)	$	(82.7	)
Net loss per share:
Basic	$	(0.56	)	$	(0.46	)	$	(1.09	)	$	(2.12	)
Diluted	$	(0.56	)	$	(0.46	)	$	(1.09	)	$	(2.12	)
Shares used in computing net loss per share:
Basic		39.0			39.3			39.5			39.1
Diluted		39.0			39.3			39.5			39.1

(1) These acquisition related costs consist primarily of amortization associated with certain acquired intangible assets. (2) Intangible asset impairment charges represent the excess carrying value of certain indefinite-lived asset over its fair value. (3) Restructuring costs primarily include severance related costs associated with operational restructurings.

SYNAPTICS INCORPORATED Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (In millions, except per share data) (Unaudited)

	Three Months Ended						Nine Months Ended
	March						March
		2025			2024			2025			2024
GAAP gross margin	$	115.8		$	110.3		$	358.9		$	326.4
Acquisition and integration related costs		26.6			14.3			68.2			46.5
Share-based compensation		0.3			1.0			(2.1	)		3.2
Non-GAAP gross margin	$	142.7		$	125.6		$	425.0		$	376.1
GAAP gross margin – percentage of revenue		43.4	%		46.5	%		45.3	%		45.8	%
Acquisition and integration related costs – percentage of revenue		10.0	%		6.0	%		8.6	%		6.5	%
Share-based compensation – percentage of revenue		0.1	%		0.4	%		(0.2	%)		0.5	%
Non-GAAP gross margin – percentage of revenue		53.5	%		52.9	%		53.7	%		52.8	%
GAAP research and development expense	$	88.6		$	83.4		$	253.2		$	251.9
Share-based compensation		(18.5	)		(15.0	)		(48.6	)		(45.7	)
Non-GAAP research and development expense	$	70.1		$	68.4		$	204.6		$	206.2
GAAP selling, general, and administrative expense	$	34.7		$	40.5		$	134.2			122.5
Share-based compensation		(1.1	)		(13.9	)		(35.2	)		(43.4	)
Acquisition and integration related costs		(1.7	)		—			(6.4	)		—
Site remediation accrual		—			—			—			(1.6	)
Legal settlement accruals and other		(0.8	)		—			(3.0	)		—
Non-GAAP selling, general, and administrative expense	$	31.1		$	26.6		$	89.6		$	77.5
GAAP operating loss	$	(26.3	)	$	(17.4	)	$	(69.9	)	$	(70.5	)
Acquisition and integration related costs		32.8			18.3			86.7			59.9
Share-based compensation		19.9			29.9			81.7			92.3
Legal settlement accruals and other		0.8			—			3.0			—
Restructuring costs		0.5			(0.2	)		15.5			9.1
Intangible asset impairment		13.8			—			13.8			—
Site remediation accrual		—			—			—			1.6
Non-GAAP operating income	$	41.5		$	30.6		$	130.8		$	92.4
GAAP net loss	$	(21.8	)	$	(18.1	)	$	(43.1	)	$	(82.7	)
Acquisition and integration related costs		32.8			18.3			86.7			59.9
Share-based compensation		19.9			29.9			81.7			92.3
Restructuring costs		0.5			(0.2	)		15.5			9.1
Intangible asset impairment		13.8			—			13.8			—
Site remediation accrual		—			—			—			1.6
Legal settlement accruals and other		0.8			—			3.0			—
Loss on early extinguishment of debt		—			—			6.5			—
Other non-cash items		0.7			0.6			1.9			1.9
Non-GAAP tax adjustments		(11.4	)		(9.5	)		(61.6	)		(18.3	)
Non-GAAP net income	$	35.3		$	21.0		$	104.4		$	63.8
GAAP net loss per share	$	(0.56	)	$	(0.46	)	$	(1.09	)	$	(2.12	)
Acquisition and integration related costs		0.84			0.47			2.19			1.53
Share-based compensation		0.51			0.76			2.07			2.36
Restructuring costs		0.01			(0.01	)		0.39			0.23
Intangible asset impairment		0.35			—			0.35			—
Site remediation accrual		—			—			—			0.04
Legal settlement accruals and other		0.02			—			0.08			—
Loss on early extinguishment of debt		—			—			0.16			—
Other non-cash items		0.02			0.02			0.05			0.05
Non-GAAP tax adjustments		(0.29	)		(0.24	)		(1.56	)		(0.47	)
Share adjustment		—			(0.01	)		(0.02	)		—
Non-GAAP net income per share – diluted	$	0.90		$	0.53		$	2.62		$	1.62

SYNAPTICS INCORPORATED CONDENSED CONSOLIDATED CASH FLOWS (In millions) (Unaudited)

	Nine Months Ended
	March 2025
		2025			2024
Net loss	$	(43.1	)	$	(82.7	)
Non-cash operating items		161.0			176.8
Changes in working capital		(33.1	)		(23.2	)
Net cash provided by operating activities		84.8			70.9

Acquisition of business, net of cash and cash equivalents acquired		(198.8	)		—
Purchase of intangible assets		(10.0	)		(13.5	)
Purchases of short-term investments		(61.0	)		(16.6	)
Advance payment on intangible assets		—			(116.5	)
Net proceeds from maturities and sales of short-term investments and other		—			26.0
Purchases of property and equipment		(19.2	)		(26.1	)
Net cash used in investing activities		(289.0	)		(146.7	)

Proceeds from issuance of convertible senior notes, net of issuance costs		439.5			—
Payment of debt issuance costs on convertible senior notes and revolving credit facility		(4.4	)		—
Payments for capped call transactions related to the convertible senior notes		(49.9	)		—
Repurchases of common stock, excluding excise taxes		(112.3	)		—
Equity compensation, net		(3.3	)		(17.8	)
Repayment of debt		(583.5	)		(6.0	)
Other		0.9			3.4
Net cash used in financing activities		(313.0	)		(20.4	)
Effect of exchange rate changes on cash and cash equivalents		0.7			(0.4	)
Net decrease in cash and cash equivalents		(516.5	)		(96.6	)
Cash and cash equivalents, beginning of period		876.9			924.7
Cash and cash equivalents, end of period	$	360.4		$	828.1

The MIL Network –

May 9, 2025

MIL-OSI: Lantronix Reports Results for Third Quarter of Fiscal 2025

Source: GlobeNewswire (MIL-OSI)

Third Quarter Net Revenue of $28.5 Million
Third Quarter GAAP EPS of ($0.10)
Third Quarter Non-GAAP EPS of $0.03

IRVINE, Calif., May 08, 2025 (GLOBE NEWSWIRE) — Lantronix Inc. (NASDAQ: LTRX), a global leader of compute and connectivity for the Internet of Things (IoT) solutions enabling Artificial Intelligence (AI) Edge Intelligence, today reported results for its third quarter of fiscal 2025.

Despite a complex macroeconomic environment, Lantronix delivered revenue within guidance and continued executing its long-term strategy toward becoming a leader in intelligent edge computing.

Lantronix continued its leadership in AI edge intelligence and industrial connectivity through several key initiatives in the last quarter. The company enabled Teledyne/FLIR’s AI-driven drone thermal camera, validating the performance and reliability of its Open-Q™ platform in mission-critical edge vision systems. Further expanding its AI-capable compute portfolio, Lantronix launched the Open-Q™ 8550CS SoM, built on Qualcomm’s advanced QCS8550 processor, which delivers premium AI/ML performance and is designed for next-generation industrial and robotics applications.

Q3 FY2025 Financial Results

Net Revenue: $28.5 million, in range of $27.0 million to $31.0 million guidance
GAAP EPS: ($0.10), compared to ($0.01) in Q3 FY2024 and ($0.06) in Q2 FY2025
Non-GAAP EPS: $0.03, compared to $0.11 in Q3 FY2024 and $0.04 in Q2 FY2025

“We’re positioning Lantronix to lead the next wave of industrial and enterprise transformation at the edge,” said Saleel Awsare, president and CEO of Lantronix. “This quarter reflects continued investment in high-growth areas — from AI-enabled gateways to 5G connectivity — while advancing our innovation roadmap, global partnerships and talent base.”

Q4 FY2025 Business Outlook

Lantronix expects the following results for the fourth fiscal quarter ending June 30, 2025:

Revenue: $26.5 million to $30.5 million
Non-GAAP EPS: $0.00 to $0.02

Conference Call and Webcast

Management will host an investor conference call and audio webcast on Thursday, May 8, 2025, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss its results for the third quarter of fiscal 2025 that ended March 31, 2025. To access the live conference call, investors should dial 1-844-802-2442 (U.S.) or 1-412-317-5135 (international) and indicate they are participating in the Lantronix fiscal 2025 third-quarter call.

Investors can access a conference call replay starting at approximately 8:00 p.m. Pacific Time on May 8, 2025, on the Lantronix website. A telephonic replay will also be available through May 15, 2025, by dialing 1-877-344-7529 (US) or 1-412-317-0088 (international) or Canada Toll-Free 855-669-9658 and entering passcode 3110521.

About Lantronix

Lantronix Inc. is a global leader of compute and connectivity IoT solutions that target high-growth markets, including Smart Cities, Enterprise and Transportation. Lantronix’s products and services empower companies to succeed in the growing IoT markets by delivering customizable solutions that enable AI Edge Intelligence. Lantronix’s advanced solutions include Intelligent Substations infrastructure, Infotainment systems and Video Surveillance, supplemented with advanced Out-of-Band Management (OOB) for Cloud and Edge Computing.

For more information, visit the Lantronix website.

Discussion of Non-GAAP Financial Measures

Lantronix believes that the presentation of non-GAAP financial information, when presented in conjunction with the corresponding GAAP measures, provides important supplemental information to management and investors regarding financial and business trends relating to the company’s financial condition and results of operations. Management uses the aforementioned non-GAAP measures to monitor and evaluate ongoing operating results and trends to gain an understanding of our comparative operating performance. The non-GAAP financial measures disclosed by the company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations of the non-GAAP financial measures to the financial measures calculated in accordance with GAAP should be carefully evaluated. The non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Non-GAAP net loss consists of net loss excluding (i) share-based compensation and the employer portion of withholding taxes on stock grants, (ii) depreciation and amortization, (iii) interest income (expense), (iv) other income (expense), (v) income tax provision (benefit), (vi) restructuring, severance and related charges, (vii) acquisition related costs, (viii) impairment of long-lived assets, (ix) amortization of purchased intangibles, (x) amortization of manufacturing profit in acquired inventory, (xi) fair value remeasurement of earnout consideration, and (xii) loss on extinguishment of debt.

Non-GAAP EPS is calculated by dividing non-GAAP net loss by non-GAAP weighted-average shares outstanding (diluted). For purposes of calculating non-GAAP EPS, the calculation of GAAP weighted-average shares outstanding (diluted) is adjusted to exclude share-based compensation, which for GAAP purposes is treated as proceeds assumed to be used to repurchase shares under the GAAP treasury stock method.

Guidance on earnings per share growth is provided only on a non-GAAP basis due to the inherent difficulty of forecasting the timing or amount of certain items that have been excluded from the forward-looking non-GAAP measures, and a reconciliation to the comparable GAAP guidance has not been provided because certain factors that are materially significant to Lantronix’s ability to estimate the excluded items are not accessible or estimable on a forward-looking basis without unreasonable effort.

Forward-Looking Statements

This news release contains forward-looking statements, including statements concerning our revenue and earnings expectations for the fourth fiscal quarter of 2025, our positioning to capitalize on the next wave of industrial and enterprise transformation using edge computing, and our expectations regarding high-growth market areas. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. We have based our forward-looking statements on our current expectations and projections about trends affecting our business and industry and other future events. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Forward-looking statements are subject to substantial risks and uncertainties that could cause our results or experiences, or future business, financial condition, results of operations or performance, to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this news release. Other factors which could have a material adverse effect on our operations and future prospects or which could cause actual results to differ materially from our expectations include, but are not limited to: the effects of negative or worsening regional and worldwide economic conditions or market instability on our business, including effects on purchasing decisions by our customers; our ability to mitigate any disruption in our and our suppliers’ and vendors’ supply chains due to changes in U.S. trade policy, including recently increased or future tariffs, a pandemic or similar outbreak, wars and recent conflicts in Europe, Asia and the Middle East, hostilities in the Red Sea, or other causes; our ability to successfully convert our backlog and current demand; the impact of a pandemic or similar outbreak on our business, employees, customers, supply and distribution chains and the global economy; our ability to successfully implement our acquisition strategy or integrate acquired companies; uncertainty as to the future profitability of acquired businesses, and delays in the realization of, or the failure to realize, any accretion from acquisition transactions; acquiring, managing and integrating new operations, businesses or assets, and the associated diversion of management attention or other related costs or difficulties; our ability to continue to generate revenue from products sold into mature markets; our ability to develop, market, and sell new products; our ability to succeed with our new software offerings; our use of AI may result in reputational, competitive or financial harm and liability; fluctuations in our revenue due to the project-based timing of orders from certain customers; unpredictable timing of our revenues due to the lengthy sales cycle for our products and services and potential delays in customer completion of projects; our ability to accurately forecast future demand for our products; delays in qualifying revisions of existing products; constraints or delays in the supply of, or quality control issues with, certain materials or components; difficulties associated with the delivery, quality or cost of our products from our contract manufacturers or suppliers; risks related to the outsourcing of manufacturing and international operations; difficulties associated with our distributors or resellers; intense competition in our industry and resultant downward price pressure; rises in inventory levels and inventory obsolescence; undetected software or hardware errors or defects in our products; cybersecurity risks; our ability to obtain appropriate industry certifications or approvals from governmental regulatory bodies; changes in applicable U.S. and foreign government laws, regulations, and tariffs; our ability to protect patents and other proprietary rights and avoid infringement of others’ proprietary technology rights; issues relating to the stability of our financial and banking institutions and relationships; the level of our indebtedness, our ability to service our indebtedness and the restrictions in our debt agreements; the impact of rising interest rates; our ability to attract and retain qualified management; and any additional factors included in our Report on Form 10-K for the fiscal year ended June 30, 2024, filed with the Securities and Exchange Commission (the “SEC”) on Sept. 9, 2024, including in the section entitled “Risk Factors” in Item 1A of Part I of that report; in our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2025, expected to be filed with the SEC on or about May 9, 2025 including in the section entitled “Risk Factors” in Item 1A of Part II of such report; and in our other public filings with the SEC. In addition, actual results may differ as a result of additional risks and uncertainties of which we are currently unaware or which we do not currently view as material to our business. For these reasons, investors are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements we make speak only as of the date on which they are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations, except as required by applicable law or the rules of the Nasdaq Stock Market LLC. If we do update or correct any forward-looking statements, investors should not conclude that we will make additional updates or corrections.

Lantronix Analyst and Investor Contact:

investors@lantronix.com

LANTRONIX, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

	March 31,			June 30,
	2025			2024
Assets
Current assets:
Cash and cash equivalents	$	19,999		$	26,237
Accounts receivable, net		23,648			31,279
Inventories, net		28,151			27,698
Contract manufacturers’ receivables		1,637			1,401
Prepaid expenses and other current assets		3,029			2,335
Total current assets		76,464			88,950
Property and equipment, net		2,768			4,016
Goodwill		31,089			27,824
Intangible assets, net		4,310			5,251
Lease right-of-use assets		8,974			9,567
Other assets		584			600
Total assets	$	124,189		$	136,208

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	11,005		$	10,347
Accrued payroll and related expenses		3,905			5,836
Current portion of long-term debt, net		3,063			3,002
Other current liabilities		10,594			10,971
Total current liabilities		28,567			30,156
Long-term debt, net		9,458			13,219
Other non-current liabilities		10,694			11,478
Total liabilities		48,719			54,853

Commitments and contingencies

Stockholders’ equity:
Common stock		4			4
Additional paid-in capital		306,858			304,001
Accumulated deficit		(231,763	)		(223,021	)
Accumulated other comprehensive income		371			371
Total stockholders’ equity		75,470			81,355
Total liabilities and stockholders’ equity	$	124,189		$	136,208

LANTRONIX, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)


	Three Months Ended									Nine Months Ended
	March 31,			December 31,			March 31,			March 31,
	2025			2024			2024			2025			2024
Net revenue	$	28,500		$	31,161		$	41,183		$	94,084		$	111,252
Cost of revenue		16,097			17,877			24,679			53,922			65,620
Gross profit		12,403			13,284			16,504			40,162			45,632
Operating expenses:
Selling, general and administrative		8,959			8,811			9,753			27,237			29,147
Research and development		4,463			4,984			5,186			14,403			15,017
Restructuring, severance and related charges		1,581			193			350			2,674			900
Acquisition-related costs		100			208			–			337			–
Fair value remeasurement of earnout consideration		–			–			–			–			(9	)
Amortization of intangible assets		879			1,248			1,310			3,378			4,004
Total operating expenses		15,982			15,444			16,599			48,029			49,059
Loss from operations		(3,579	)		(2,160	)		(95	)		(7,867	)		(3,427	)
Interest expense, net		(159	)		(126	)		(171	)		(404	)		(741	)
Other income (loss), net		(19	)		8			2			(48	)		(2	)
Loss before income taxes		(3,757	)		(2,278	)		(264	)		(8,319	)		(4,170	)
Provision for income taxes		111			94			159			423			732
Net loss	$	(3,868	)	$	(2,372	)	$	(423	)	$	(8,742	)	$	(4,902	)
Net loss per share – basic and diluted	$	(0.10	)	$	(0.06	)	$	(0.01	)	$	(0.23	)	$	(0.13	)
Weighted-average common shares – basic and diluted		38,820			38,631			37,509			38,493			37,283

LANTRONIX, INC.
UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS
(In thousands, except per share data)

	Three Months Ended									Nine Months Ended
	March 31,			December 31,			March 31,			March 31,
	2025			2024			2024			2025			2024

GAAP net loss	$	(3,868	)	$	(2,372	)	$	(423	)	$	(8,742	)	$	(4,902	)
Non-GAAP adjustments:
Cost of revenue:
Share-based compensation		34			48			66			146			171
Employer portion of withholding taxes on stock grants		–			2			1			7			6
Amortization of manufacturing profit in acquired inventory		44			–			190			44			696
Depreciation and amortization		101			114			144			338			339
Total adjustments to cost of revenue		179			164			401			535			1,212
Selling, general and administrative:
Share-based compensation		1,159			1,044			1,337			3,329			4,238
Employer portion of withholding taxes on stock grants		13			20			21			111			68
Depreciation and amortization		345			348			352			1,044			1,024
Total adjustments to selling, general and administrative		1,517			1,412			1,710			4,484			5,330
Research and development:
Share-based compensation		324			421			469			1,155			1,381
Employer portion of withholding taxes on stock grants		4			2			9			25			27
Depreciation and amortization		56			111			76			236			236
Total adjustments to research and development		384			534			554			1,416			1,644
Restructuring, severance and related charges		1,581			193			350			2,674			900
Acquisition related costs		100			208			–			337			–
Fair value remeasurement of earnout consideration		–			–			–			–			(9	)
Amortization of purchased intangible assets		879			1,248			1,310			3,378			4,004
Litigation settlement cost		–			158			–			198			–
Total non-GAAP adjustments to operating expenses		4,461			3,753			3,924			12,487			11,869
Interest expense, net		159			126			171			404			741
Other (income) expense, net		19			(8	)		(2	)		48			2
Provision for income taxes		111			94			159			423			732
Total non-GAAP adjustments		4,929			4,129			4,653			13,897			14,556
Non-GAAP net income	$	1,061		$	1,757		$	4,230		$	5,155		$	9,654


Non-GAAP net income per share – diluted	$	0.03		$	0.04		$	0.11		$	0.13		$	0.25

Denominator for GAAP net income (loss) per share – diluted		38,820			38,631			37,509			38,493			37,283
Non-GAAP adjustment		1,300			953			1,674			1,034			1,021
Denominator for non-GAAP net income per share – diluted		40,120			39,584			39,183			39,527			38,304

GAAP cost of revenue	$	16,097		$	17,877		$	24,679		$	53,922		$	65,620
Non-GAAP adjustments to cost of revenue		(179	)		(164	)		(401	)		(535	)		(1,212	)
Non-GAAP cost of revenue		15,918			17,713			24,278			53,387			64,408
Non-GAAP gross profit	$	12,582		$	13,448		$	16,905		$	40,697		$	46,844
Non-GAAP gross margin		44.1	%		43.2	%		41.0	%		43.3	%		42.1	%

LANTRONIX, INC.
UNAUDITED NET REVENUES BY PRODUCT LINE AND REGION
(In thousands)

	Three Months Ended						Nine Months Ended
	March 31, 2025		December 31, 2024		March 31, 2024		March 31, 2025		March 31, 2024
Embedded IoT Solutions	$	11,990	$	10,784	$	12,452	$	36,161	$	35,589
IoT System Solutions		14,730		18,592		26,789		52,081		68,847
Software & Services		1,780		1,785		1,942		5,842		6,816
	$	28,500	$	31,161	$	41,183	$	94,084	$	111,252


	Three Months Ended						Nine Months Ended
	March 31, 2025		December 31, 2024		March 31, 2024		March 31, 2025		March 31, 2024
Americas	$	16,497	$	16,386	$	17,543	$	50,303	$	61,077
EMEA		6,048		9,036		18,354		25,568		37,831
Asia Pacific Japan		5,955		5,739		5,286		18,213		12,344
	$	28,500	$	31,161	$	41,183	$	94,084	$	111,252

The MIL Network –

May 9, 2025

MIL-OSI: Fidus Investment Corporation Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Board of Directors Declared Total Dividends of $0.54 per Share for Second Quarter 2025

Base Dividend of $0.43 and Supplemental Dividend of $0.11 Per Share

EVANSTON, Ill., May 08, 2025 (GLOBE NEWSWIRE) — Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”), a provider of customized debt and equity financing solutions, primarily to lower middle-market companies based in the United States, today announced its financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights

Total investment income of $36.5 million
Net investment income of $18.2 million, or $0.53 per share
Adjusted net investment income of $18.5 million, or $0.54 per share⁽¹⁾
Invested $115.6 million in debt and equity securities, including seven new portfolio companies
Received proceeds from repayments and realizations of $57.3 million
Paid total dividends of $0.54 per share: regular quarterly dividend of $0.43 and a supplemental dividend of $0.11 per share on March 27, 2025
Net asset value (“NAV”) of $677.9 million, or $19.39 per share, as of March 31, 2025
Estimated spillover income (or taxable income in excess of distributions) as of March 31, 2025 of $47.4 million, or $1.36 per share

Management Commentary

“We continued to build our portfolio of debt and equity investments in a methodical and disciplined manner during the first quarter by investing in high quality businesses with defensive characteristics and resilient business models that generate high levels of cash flow to service debt and support growth. We also monetized two equity investments for a net realized gain of $11.5 million, or $0.33 per share, which contributed to the increase in NAV,” said Edward Ross, Chairman and CEO of Fidus Investment Corporation. “Our portfolio remains well diversified and healthy overall, and constructed to generate attractive risk-adjusted returns over time for the benefit of our shareholders.”

(1) Supplemental information regarding adjusted net investment income:

On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our investment adviser provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliations of net investment income to adjusted net investment income are set forth in Schedule 1.

First Quarter 2025 Financial Results

The following table provides a summary of our operating results for the three months ended March 31, 2025, as compared to the same period in 2024 (dollars in thousands, except per share data):


	Three Months Ended March 31,
	2025		2024		$ Change			% Change
Interest income	$	30,319	$	28,138	$	2,181			7.8	%
Payment-in-kind interest income		2,248		2,049		199			9.7	%
Dividend income		1,231		397		834			210.1	%
Fee income		2,127		2,359		(232	)		(9.8	%)
Interest on idle funds		571		1,708		(1,137	)		(66.6	%)
Total investment income	$	36,496	$	34,651	$	1,845			5.3	%

Net investment income	$	18,222	$	17,627	$	595			3.4	%
Net investment income per share	$	0.53	$	0.57	$	(0.04	)		(7.0	%)

Adjusted net investment income ⁽¹⁾	$	18,509	$	18,126	$	383			2.1	%
Adjusted net investment income per share ⁽¹⁾	$	0.54	$	0.59	$	(0.05	)		(8.5	%)

Net increase (decrease) in net assets resulting from operations	$	19,658	$	20,123	$	(465	)		(2.3	%)
Net increase (decrease) in net assets resulting from operations per share	$	0.58	$	0.65	$	(0.07	)		(10.8	%)

The $1.8 million increase in total investment income for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily attributable to (i) a $2.4 million increase in total interest income (which includes payment-in-kind interest income) resulting from an increase in average debt investment balances outstanding, partially offset by a decrease in weighted average yield on debt investment balances outstanding, (ii) a $0.8 million increase in dividend income due to an increase in distributions received from equity investments, partially offset by (iii) a $0.2 million decrease in fee income resulting from a decrease in amendment and management services fees and (iv) a $1.2 million decrease in interest on idle funds resulting from a decrease in average cash balances.

For the three months ended March 31, 2025, total expenses, including the base management fee waiver and income tax provision, were $18.3 million, an increase of $1.3 million, or 7.3% from the $17.0 million of total expenses, including the base management fee waiver and income tax provision, for the three months ended March 31, 2024. The increase was primarily attributable to (i) a $0.8 million increase in interest and financing expenses due to an increase in average borrowings outstanding and weighted average interest rates of our debt outstanding, (ii) a $0.6 million net increase in base management fee, including the base management fee waiver, due to higher average total assets, (iii) a $0.1 million increase in the income incentive fee, partially offset by (iv) a $0.2 million decrease in the accrued capital gains incentive fee.

Net investment income increased by $0.6 million, or 3.4%, to $18.2 million during the three months ended March 31, 2025 as compared to the same period in 2024, as a result of the $1.8 million increase in total investment income and the $1.3 million increase in total expenses, including base management fee waiver and income tax provision. Adjusted net investment income,⁽¹⁾ which excludes the capital gains incentive fee accrual, was $0.54 per share compared to $0.59 per share in the prior year.

For the three months ended March 31, 2025, the total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, was $11.5 million, as compared to total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, of $1.8 million for the same period in 2024.

Portfolio and Investment Activities

As of March 31, 2025, the fair value of our investment portfolio totaled $1.2 billion and consisted of 92 active portfolio companies and four portfolio companies that have sold their underlying operations. Our total portfolio investments at fair value were approximately 100.5% of the related cost basis as of March 31, 2025. As of March 31, 2025, the debt investments of 52 portfolio companies bore interest at a variable rate, which represented $740.3 million, or 72.8%, of our debt investment portfolio on a fair value basis, and the remainder of our debt investment portfolio was comprised of fixed rate investments. As of March 31, 2025, our average active portfolio company investment at amortized cost was $12.5 million, which excludes investments in four portfolio companies that have sold their underlying operations. The weighted average yield on debt investments was 13.2% as of March 31, 2025. The weighted average yield was computed using the effective interest rates for debt investments at cost as of March 31, 2025, including the accretion of original issue discounts and loan origination fees, but excluding investments on non-accrual status and investments recorded as a secured borrowing.

First quarter 2025 investment activity included the following new portfolio company investments:

AMOpportunities, Inc., a healthcare training platform providing tech-enabled clinical rotation development and management services for schools, providers, and health systems. Fidus invested $10.0 million in first lien debt and $0.7 million in preferred equity.
Customer Expressions Corp. (dba Case IQ), a provider of SaaS-based Governance, Risk and Compliance (GRC) solutions to mid-size and large enterprises. Fidus invested $15.0 million in first lien debt and $0.8 million in common equity.
Fraser Steel LLC, a designer and manufacturer of steel tubular parts and assemblies for OEM customers used in a wide range of applications. Fidus invested $14.0 million in first lien debt, $0.1 million in preferred equity, $0.5 million in common equity, and made additional commitments up to $2.0 million in a revolving loan.
Info Tech Operating, LLC (dba infotech), a software solutions provider for the infrastructure construction industry. Fidus invested $13.5 million in first lien debt.
Mayesh Wholesale Florist, LLC, a leading U.S. wholesaler of premium, fresh cut flowers. Fidus invested $10.5 million in first lien debt, $0.5 million in preferred equity, and made additional commitments up to $2.0 million in first lien debt.
Onsight Industries, LLC, a leading provider of customized signs & displays, mailbox solutions, and site furnishings for the home builder and land developer industries. Fidus invested $9.1 million in first lien debt and $0.4 million in common equity.
PayEntry Financial Services, Inc. (dba Payentry), a leading provider of payroll processing and other complementary HR services (e.g., insurance, 401K, benefits, HCM solutions) to SMBs. Fidus invested $5.6 million in second lien debt, $0.8 million in preferred equity, and made additional commitments up to $6.0 million in second lien debt.

Liquidity and Capital Resources

As of March 31, 2025, we had $67.5 million in cash and cash equivalents and $140.0 million of unused capacity under our senior secured revolving credit facility (the “Credit Facility”). For the three months ended March 31, 2025, we received net proceeds of $20.7 million from the equity at-the-market program (the “ATM Program”) and received net proceeds from the issuance of the March 2030 Notes (as defined below) of $96.9 million. As of March 31, 2025, we had SBA debentures outstanding of $182.0 million, $125.0 million outstanding of our 4.75% notes due January 2026 (the “January 2026 Notes”), $125.0 million outstanding of our 3.50% notes due November 2026 (the “November 2026 Notes”), and $100.0 million outstanding of our 6.75% March 2030 Notes (the “March 2030 Notes” and together with the January 2026 Notes and the November 2026 Notes, the “Notes”). As of March 31, 2025, the weighted average interest rate on total debt outstanding was 4.8%.

Second Quarter 2025 Dividends Totaling $0.54 Per Share Declared

On May 5, 2025, our board of directors declared a base dividend of $0.43 per share and a supplemental dividend of $0.11 per share for the second quarter. The dividends will be payable on June 25, 2025, to stockholders of record as of June 13, 2025.

When declaring dividends, our board of directors reviews estimates of taxable income available for distribution, which differs from consolidated income under GAAP due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of undistributed taxable income carried over from a given year for distribution in the following year. The final determination of 2025 taxable income, as well as the tax attributes for 2025 dividends, will be made after the close of the 2025 tax year. The final tax attributes for 2025 dividends will generally include ordinary taxable income but may also include capital gains, qualified dividends and return of capital.

Fidus has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of dividends on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when we declare a cash dividend, stockholders who have not “opted out” of the DRIP at least two days prior to the dividend payment date will have their cash dividends automatically reinvested in additional shares of our common stock. Those stockholders whose shares are held by a broker or other financial intermediary may receive dividends in cash by notifying their broker or other financial intermediary of their election.

Subsequent Events

On April 15, 2025, we invested $5.0 million in first lien debt, $0.4 million in preferred equity, $0.4 million in common equity, and committed up to $4.0 million in a revolving loan to Laboratory Testing, LLC, a provider of material testing and calibration services, primarily to the Aerospace & Defense end market.

On April 23, 2025, we exited our debt investments in Elements Brands, LLC. We received payment in full of $3.7 million on our first lien debt, which includes fees.

On May 5, 2025, we issued an additional $10.0 million in SBA debentures, which will bear interest at a fixed interim interest rate of 5.163% until the pooling date in September 2025.

First Quarter 2025 Financial Results Conference Call

Management will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, May 9, 2025. To participate in the conference call, please dial (844) 808-7136 approximately 10 minutes prior to the call. International callers should dial (412) 317-0534. Please ask to be joined into the Fidus Investment Corporation call.

A live webcast of the conference call will be available at http://investor.fdus.com/news-events/events-presentations. Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived replay of the conference call will also be available in the investor relations section of the Company’s website.

ABOUT FIDUS INVESTMENT CORPORATION

Fidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between $10 million and $150 million. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from debt investments and capital appreciation from equity related investments. Fidus seeks to partner with business owners, management teams and financial sponsors by providing customized financing for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.

Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus has elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007 and was licensed by the U.S. Small Business Administration as a Small Business Investment Company (SBIC).

FORWARD-LOOKING STATEMENTS

This press release may contain certain forward-looking statements which are based upon current expectations and are inherently uncertain, including, but not limited to, statements about the future performance and financial condition of the Company, the prospects of our existing and prospective portfolio companies, the financial condition and ability of our existing and prospective portfolio companies to achieve their objectives, and the timing, form and amount of any distributions or supplemental dividends in the future. 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, such as changes in the financial and lending markets, the impact of the general economy (including an economic downturn or recession), the impact of interest rate volatility and the impact of elevated levels of inflation on the Company’s portfolio companies and the industries in which it invests, and the uncertainty relating to the general economy (including the uncertainty with respect to new tariffs and trade policies); 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 as a result of a number of factors related to changes in the markets in which the Company invests, changes in the financial, capital, and lending markets, and other factors described from time to time in the Company’s filings with the Securities and Exchange Commission. Such statements speak only as of the time when made, and are based on information available to the Company as of the date hereof and are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to update any such statement now or in the future, except as required by applicable law.


FIDUS INVESTMENT CORPORATION Consolidated Statements of Assets and Liabilities (in thousands, except shares and per share data)

	March 31,			December 31,
	2025			2024
ASSETS
Investments, at fair value:
Control investments (cost: $6,832 and $6,832, respectively)	$	—		$	—
Affiliate investments (cost: $52,611 and $56,679, respectively)		91,066			102,024
Non-control/non-affiliate investments (cost: $1,089,409 and $1,011,646, respectively)		1,063,342			988,482
Total investments, at fair value (cost: $1,148,852 and $1,075,157, respectively)		1,154,408			1,090,506
Cash and cash equivalents		67,478			57,159
Interest receivable		18,404			15,119
Proceeds receivable from stock offering		701			—
Prepaid expenses and other assets		991			1,328
Total assets	$	1,241,982		$	1,164,112
LIABILITIES
SBA debentures, net of deferred financing costs	$	175,870		$	168,899
Notes, net of deferred financing costs		345,557			248,362
Borrowings under Credit Facility, net of deferred financing costs		(948	)		43,954
Secured borrowings		13,601			13,674
Accrued interest and fees payable		3,573			5,784
Base management fee payable, net of base management fee waiver – due to affiliate		4,863			4,805
Income incentive fee payable – due to affiliate		4,594			4,477
Capital gains incentive fee payable – due to affiliate		14,990			14,703
Administration fee payable and other, net – due to affiliate		295			919
Taxes payable		325			1,850
Accounts payable and other liabilities		1,332			1,019
Total liabilities	$	564,052		$	508,446
Commitments and contingencies
NET ASSETS
Common stock, $0.001 par value (100,000,000 shares authorized, 34,970,709 and 33,914,652 shares
issued and outstanding at March 31, 2025 and December 31, 2024, respectively)	$	35		$	34
Additional paid-in capital		588,519			567,159
Total distributable earnings		89,376			88,473
Total net assets		677,930			655,666
Total liabilities and net assets	$	1,241,982		$	1,164,112
Net asset value per common share	$	19.39		$	19.33


FIDUS INVESTMENT CORPORATION Consolidated Statements of Operations (unaudited) (in thousands, except shares and per share data)

	Three Months Ended
	March 31,
	2025			2024
Investment Income:
Interest income
Control investments	$	—		$	—
Affiliate investments		1,094			869
Non-control/non-affiliate investments		29,225			27,269
Total interest income		30,319			28,138
Payment-in-kind interest income
Control investments		—			—
Affiliate investments		—			—
Non-control/non-affiliate investments		2,248			2,049
Total payment-in-kind interest income		2,248			2,049
Dividend income
Control investments		—			—
Affiliate investments		886			348
Non-control/non-affiliate investments		345			49
Total dividend income		1,231			397
Fee income
Control investments		—			—
Affiliate investments		8			5
Non-control/non-affiliate investments		2,119			2,354
Total fee income		2,127			2,359
Interest on idle funds		571			1,708
Total investment income		36,496			34,651
Expenses:
Interest and financing expenses		6,773			6,012
Base management fee		4,922			4,432
Incentive fee – income		4,594			4,467
Incentive fee (reversal) – capital gains		287			499
Administrative service expenses		602			537
Professional fees		948			937
Other general and administrative expenses		206			229
Total expenses before base management fee waiver		18,332			17,113
Base management fee waiver		(59	)		(69	)
Total expenses, net of base management fee waiver		18,273			17,044
Net investment income before income taxes		18,223			17,607
Income tax provision (benefit)		1			(20	)
Net investment income		18,222			17,627
Net realized and unrealized gains (losses) on investments:
Net realized gains (losses):
Control investments		—			—
Affiliate investments		10,066			—
Non-control/non-affiliate investments		3,264			1,743
Total net realized gain (loss) on investments		13,330			1,743
Income tax (provision) benefit from realized gains on investments		(1,850	)		56
Net change in unrealized appreciation (depreciation):
Control investments		—			—
Affiliate investments		(6,890	)		(3,236	)
Non-control/non-affiliate investments		(2,903	)		4,454
Total net change in unrealized appreciation (depreciation) on investments		(9,793	)		1,218
Net gain (loss) on investments		1,687			3,017
Realized losses on extinguishment of debt		(251	)		(521	)
Net increase (decrease) in net assets resulting from operations	$	19,658		$	20,123
Per common share data:
Net investment income per share-basic and diluted	$	0.53		$	0.57
Net increase in net assets resulting from operations per share — basic and diluted	$	0.58		$	0.65
Dividends declared per share	$	0.54		$	0.65
Weighted average number of shares outstanding — basic and diluted		34,077,720			30,776,758

Schedule 1

Supplemental Information Regarding Adjusted Net Investment Income

On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our investment advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year, less the aggregate amount of any capital gains incentive fees paid in all prior years. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. The following table provides a reconciliation of net investment income to adjusted net investment income for the three months ended March 31, 2025 and 2024.

	($ in thousands)
	Three Months Ended
	March 31,
	(unaudited)
	2025		2024
Net investment income	$	18,222	$	17,627
Capital gains incentive fee expense (reversal)		287		499
Adjusted net investment income ⁽¹⁾	$	18,509	$	18,126

	(Per share)
	Three Months Ended
	March 31,
	(unaudited)
	2025		2024
Net investment income	$	0.53	$	0.57
Capital gains incentive fee expense (reversal)		0.01		0.02
Adjusted net investment income ⁽¹⁾	$	0.54	$	0.59

(1)

Adjusted net investment income per share amounts are calculated as adjusted net investment income divided by weighted average shares outstanding for the period. Due to rounding, the sum of net investment income per share and capital gains incentive fee expense (reversal) amounts may not equal the adjusted net investment income per share amount presented here.

Company Contact:	Investor Relations Contact:
Shelby E. Sherard	Jody Burfening
Chief Financial Officer	Alliance Advisors IR
(847) 859-3940	(212) 838-3777
ssherard@fidusinv.com	jburfening@allianceadvisors.com

The MIL Network –

May 9, 2025

MIL-OSI: AvePoint Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

First quarter SaaS revenue of $68.9 million, representing 34% year-over-year growth, 37% on a constant currency basis
First quarter Total revenue of $93.1 million, representing 25% year-over-year growth, 27% on a constant currency basis
Total ARR of $345.5 million, representing 26% year-over-year growth, 28% adjusted for FX

JERSEY CITY, N.J., May 08, 2025 (GLOBE NEWSWIRE) — AvePoint (NASDAQ: AVPT), the global leader in data security, governance and resilience, today announced financial results for the first quarter ended March 31, 2025.

“Highlighted by record growth in net new ARR and meaningful operating margin expansion, our first quarter results reflect our ability to efficiently address the intensifying convergence of data security, governance, and resilience challenges facing companies today,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. “Despite the fluid macroeconomic environment, organizations are increasingly implementing AI-driven data management strategies that demand platform solutions which balance security and innovation. Our team’s execution to start the year has us steadily advancing toward our vision of becoming the world’s leading data management software company and achieving our billion-dollar ARR target for 2029.”

First Quarter 2025 Financial Highlights

Revenue: Total revenue was $93.1 million, up 25% from the first quarter of 2024. Within total revenue, SaaS revenue was $68.9 million, up 34% from the first quarter of 2024.

Gross Profit: GAAP gross profit was $69.2 million, compared to $54.1 million for the first quarter of 2024. Non-GAAP gross profit was $69.8 million, compared to $55.2 million for the first quarter of 2024. Non-GAAP gross margin was 75.0%, compared to 74.1% for the first quarter of 2024.

Operating Income/(Loss): GAAP operating income was $3.3 million, compared to a GAAP operating loss of $(3.2) million for the first quarter of 2024. Non-GAAP operating income was $13.4 million, compared to $6.6 million for the first quarter of 2024.

Cash, cash equivalents and short-term investments: $351.8 million as of March 31, 2025.

Cash from operations: For the three months ended March 31, 2025, the Company generated $0.5 million of cash from operations, compared to $7.8 million generated in the prior year period.

First Quarter 2025 Key Performance Indicators and Recent Business Highlights

ARR as of March 31, 2025 was $345.5 million, up 26% year-over-year. Adjusted for FX, ARR grew 28% year-over-year.

Adjusted for FX, dollar-based gross retention rate was 89%, while dollar-based net retention rate was 111%. On an as-reported basis, dollar-based gross retention rate was 88%, while dollar-based net retention rate was 111%.

Completed the acquisition of Ydentic to provide Managed Service Providers (MSPs) with an AI-driven platform to manage, optimize, and secure clients’ IT environments.
Launched the next generation of AvePoint Elements to automate insights, secure data, and accelerate profitability and efficiency for MSPs building security-centric practices.
Released new data security solutions for Google, expanding the Company’s multi-cloud protection to empower organizations with intelligent risk identification, proactive threat monitoring, and incident response at scale to enhance customers’ cyber resilience and prevent data breaches.

Renewed the existing Share Repurchase Program for an additional three years, providing the authority to buy up to $150.0 million of the Company’s common stock.

Financial Outlook
The company’s current financial outlook for the second quarter and full year 2025 is below. The global nature of our business exposes us to fluctuations in foreign exchange rates, and in the first quarter we saw a modest currency tailwind from the weakening of the U.S. dollar. This weakening has continued in the second quarter, and the corresponding incremental FX tailwinds are reflected in our updated full-year guidance for all metrics. Additionally, the Company’s updated full-year guidance for revenue and non-GAAP operating income includes the respective first quarter outperformance relative to guidance.

For the second quarter of 2025, the Company expects:

Total revenues of $95.3 million to $97.3 million, or year-over-year growth of 22% to 25%. On a constant currency basis, the Company expects revenue growth of 20% to 22%.
Non-GAAP operating income of $13.2 million to $14.2 million.

For the full year 2025, the Company now expects:

Total ARR of $411.8 million to $417.8 million, or year-over-year growth of 26% to 28%. Adjusted for FX, the Company expects ARR growth of 24% to 26%.
Total revenues of $397.4 million to $405.4 million, or year-over-year growth of 20% to 23%. On a constant currency basis, the Company expects revenue growth of 18% to 20%.
Non-GAAP operating income of $61.4 million to $64.4 million.

Quarterly Conference Call

AvePoint will host a conference call today, May 8, 2025, to review its first quarter 2025 financial results and to discuss its financial outlook. The call is scheduled to begin at 4:30pm ET. You may access the call and register with a live operator by dialing 1 (833) 816-1428 for US participants and 1 (412) 317-0520 for outside the US. The passcode for the call is 1630173. Investors can also join by webcast by visiting https://ir.avepoint.com/events. The webcast will be available live, and a replay will be available following the completion of the live broadcast for approximately 90 days.

About AvePoint

Beyond Secure. AvePoint is the global leader in data security, governance, and resilience, going beyond traditional solutions to ensure a robust data foundation and enable organizations everywhere to collaborate with confidence. Over 25,000 customers worldwide rely on the AvePoint Confidence Platform to prepare, secure, and optimize their critical data across Microsoft, Google, Salesforce, and other collaboration environments. AvePoint’s global channel partner program includes approximately 5,000 managed service providers, value-added resellers, and systems integrators, with our solutions available in more than 100 cloud marketplaces. To learn more, visit www.avepoint.com.

Non-GAAP Financial Measures and Other Key Metrics

To supplement AvePoint’s consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (including percentage of revenue figures), non-GAAP operating income and non-GAAP operating margin, and key metrics include annual recurring revenue, dollar-based gross retention rate, and dollar-based net retention rate. The company has included a reconciliation of GAAP to non-GAAP financial measures at the end of this press release. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation expense and the amortization of acquired intangible assets. The company believes the presentation of its non-GAAP financial measures provides a better representation as to its overall operating performance. The presentation of AvePoint’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for its financial results prepared in accordance with GAAP, and AvePoint’s non-GAAP measures may be different from non-GAAP measures used by other companies.

Annual Recurring Revenue. This metric is calculated as the annualized sum of contractually obligated Annual Contract Value (“ACV”) from SaaS, term license and support, and maintenance revenue sources from all active customers at the end of a reporting period. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or replace these items. ARR is not a forecast of future revenue, and the active contracts used in calculating ARR may or may not be extended or renewed by our customers. The company believes this metric further enables measurement of its business performance, is an important metric for financial forecasting and better enables strategic decision making. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.

Dollar-based Gross Retention Rate. This metric is calculated by starting with the ARR from all active customers as of 12 months prior to such period end, or Prior Period ARR. The company then calculates ARR from these same customers as of the current period end, or Current Period ARR. Current Period ARR includes net contraction or attrition over the last 12 months but excludes ARR from new customers in the current period. The company then divides the total Current Period ARR by the total Prior Period ARR to arrive at the dollar-based gross retention rate. The company uses this metric as a measure of its ability to retain existing customers, and believes it is useful to investors for the same reason. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.

Dollar-based Net Retention Rate. This metric is calculated by starting with the ARR from all active customers as of 12 months prior to such period end, or Prior Period ARR. The company then calculates ARR from these same customers as of the current period end, or Current Period ARR. Current Period ARR includes net expansion over the last 12 months but excludes ARR from new customers in the current period. The company then divides the total Current Period ARR by the total Prior Period ARR to arrive at the dollar-based net retention rate. The company uses this metric as a measure of its ability to expand business with existing customers, and believes it is useful to investors for the same reason. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.

Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and other federal securities laws including statements regarding the future performance of and market opportunities for AvePoint. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: changes in the competitive and regulated industries in which AvePoint operates, variations in operating performance across competitors, changes in laws and regulations affecting AvePoint’s business and changes in AvePoint’s ability to implement business plans, forecasts, and ability to identify and realize additional opportunities, and the risk of downturns in the market and the technology industry. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of AvePoint’s most recent Annual Report on Form 10-K. Copies of this and other documents filed by AvePoint from time to time are available on the SEC’s website, www.sec.gov. This filing identifies and addresses other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and AvePoint does not assume any obligation and does not intend to update or revise these forward-looking statements after the date of this release, whether as a result of new information, future events, or otherwise, except as required by law. AvePoint does not give any assurance that it will achieve its expectations. Unless the context otherwise indicates, references in this press release to the terms “AvePoint,” “the Company,” “we,” “our” and “us” refer to AvePoint, Inc. and its subsidiaries.

Disclosure Information
AvePoint uses the https://www.avepoint.com/ir website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Investor Contact
AvePoint
Jamie Arestia
ir@avepoint.com
(551) 220-5654

Media Contact
AvePoint
Nicole Caci
pr@avepoint.com
(201) 201-8143

AvePoint, Inc. Condensed Consolidated Statements of Income (Loss) (In thousands, except per share amounts) (Unaudited)

	Three Months Ended
	March 31,
	2025		2024
Revenue:
SaaS	$	68,942	$	51,311
Term license and support		11,190		10,005
Services		10,937		10,481
Maintenance		1,995		2,737
Total revenue		93,064		74,534
Cost of revenue:
SaaS		12,537		9,770
Term license and support		411		416
Services		10,798		10,073
Maintenance		153		183
Total cost of revenue		23,899		20,442
Gross profit		69,165		54,092
Operating expenses:
Sales and marketing		34,522		29,939
General and administrative		18,667		16,868
Research and development		12,689		10,486
Total operating expenses		65,878		57,293
Income (loss) from operations		3,287		(3,201	)
Other income, net		1,586		3,404
Income before income taxes		4,873		203
Income tax expense		1,307		2,157
Net income (loss)	$	3,566	$	(1,954	)
Net income (loss) attributable to noncontrolling interest		126		(238	)
Net income (loss) available to common stockholders	$	3,440	$	(1,716	)
Net income (loss) per share:
Basic	$	0.02	$	(0.01	)
Diluted	$	0.02	$	(0.01	)
Weighted average shares outstanding:
Basic		197,924		181,495
Diluted		224,573		181,495

AvePoint, Inc. Condensed Consolidated Balance Sheets (In thousands, except par value) (Unaudited)

	March 31,			December 31,
	2025			2024
Assets
Current assets:
Cash and cash equivalents	$	351,481		$	290,735
Short-term investments		317			167
Accounts receivable, net		80,124			87,365
Prepaid expenses and other current assets		14,717			16,528
Total current assets		446,639			394,795
Property and equipment, net		5,961			5,289
Goodwill		36,774			17,715
Intangible assets, net		11,514			8,889
Operating lease right-of-use assets		17,813			15,954
Deferred contract costs		59,945			59,838
Other assets		20,202			16,575
Total assets	$	598,848		$	519,055
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	2,293		$	2,352
Accrued expenses and other current liabilities		56,154			76,135
Current portion of deferred revenue		149,760			144,468
Total current liabilities		208,207			222,955
Long-term operating lease liabilities		11,649			9,909
Long-term portion of deferred revenue		10,846			8,840
Other liabilities		6,693			6,403
Total liabilities		237,395			248,107
Commitments and contingencies
Stockholders’ equity
Common stock, $0.0001 par value; 1,000,000 shares authorized, 203,031 and 194,071 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		20			19
Additional paid-in capital		873,269			779,007
Accumulated other comprehensive income		1,682			576
Accumulated deficit		(515,468	)		(510,448	)
Noncontrolling interest		1,950			1,794
Total stockholders’ equity		361,453			270,948
Total liabilities and stockholders’ equity	$	598,848		$	519,055

AvePoint, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)

	Three Months Ended
	March 31,
	2025			2024
Operating activities
Net income (loss)	$	3,566		$	(1,954	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		1,511			1,295
Operating lease right-of-use assets expense		1,847			1,420
Foreign currency remeasurement loss		540			580
Stock-based compensation		9,620			9,458
Deferred income taxes		(95	)		(72	)
Other		1,064			(146	)
Change in value of earn-out and warrant liabilities		(474	)		(1,490	)
Changes in operating assets and liabilities:
Accounts receivable		9,198			10,933
Prepaid expenses and other current assets		1,895			1,718
Deferred contract costs and other assets		(2,637	)		4,447
Accounts payable, accrued expenses, other current liabilities, operating lease liabilities and other liabilities		(29,751	)		(14,293	)
Deferred revenue		4,211			(4,140	)
Net cash provided by operating activities		495			7,756
Investing activities
Maturities of investments		—			240
Purchases of investments		—			(389	)
Capitalization of internal-use software		(452	)		(391	)
Purchase of property and equipment		(1,514	)		(502	)
Issuance of notes receivables		—			(500	)
Cash paid in business combinations, net of cash acquired		(14,893	)		—
Net cash used in investing activities		(16,859	)		(1,542	)
Financing activities
Purchase of common stock		(11,905	)		(13,743	)
Proceeds from warrant exercises		87,344			—
Proceeds from stock option exercises		744			784
Repayments of finance leases		(2	)		(2	)
Net cash provided by (used in) financing activities		76,181			(12,961	)
Effect of exchange rates on cash		929			(926	)
Net increase (decrease) in cash and cash equivalents		60,746			(7,673	)
Cash and cash equivalents at beginning of period		290,735			223,162
Cash and cash equivalents at end of period	$	351,481		$	215,489
Supplemental disclosures of cash flow information
Income taxes paid	$	901		$	984
Unpaid purchase consideration transferred in connection with the business combination	$	5,499		$	—
Unpaid redemption of noncontrolling interest	$	—		$	5,926

AvePoint, Inc. Non-GAAP Reconciliations (In thousands) (Unaudited)

	Three Months Ended
	March 31,
	2025			2024
Non-GAAP operating income
GAAP operating income (loss)	$	3,287		$	(3,201	)
Stock-based compensation expense		9,620			9,458
Amortization of acquired intangible assets		466			353
Non-GAAP operating income	$	13,373		$	6,610
Non-GAAP operating margin		14.4	%		8.9	%



Non-GAAP gross profit
GAAP gross profit	$	69,165		$	54,092
Stock-based compensation expense		342			871
Amortization of acquired intangible assets		333			241
Non-GAAP gross profit	$	69,840		$	55,204
Non-GAAP gross margin		75.0	%		74.1	%

Non-GAAP sales and marketing
GAAP sales and marketing	$	34,522		$	29,939
Stock-based compensation expense		(2,326	)		(2,284	)
Amortization of acquired intangible assets		(133	)		(112	)
Non-GAAP sales and marketing	$	32,063		$	27,543
Non-GAAP sales and marketing as a % of revenue		34.5	%		37.0	%

Non-GAAP general and administrative
GAAP general and administrative	$	18,667		$	16,868
Stock-based compensation expense		(4,754	)		(4,967	)
Non-GAAP general and administrative	$	13,913		$	11,901
Non-GAAP general and administrative as a % of revenue		14.9	%		16.0	%

Non-GAAP research and development
GAAP research and development	$	12,689		$	10,486
Stock-based compensation expense		(2,198	)		(1,336	)
Non-GAAP research and development	$	10,491		$	9,150
Non-GAAP research and development as a % of revenue		11.3	%		12.3	%

The MIL Network –

May 9, 2025

MIL-OSI: EverCommerce Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

DENVER, May 08, 2025 (GLOBE NEWSWIRE) — EverCommerce Inc. (“EverCommerce” or the “Company”) (NASDAQ: EVCM), a leading service commerce platform, today announced financial results for the quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights

Revenue from continuing operations of $142.3 million, an increase of 3.2% compared to $137.9 million for the quarter ended March 31, 2024. Pro Forma Revenue, which excludes fitness, increased 7.4% to 142.3 million, compared to $132.4 million for the quarter ended March 31, 2024.
Subscription and transaction fees revenue from continuing operations of $137.8 million, an increase of 3.3% compared to $133.4 million for the quarter ended March 31, 2024. Pro Forma subscription and transaction fees revenue, which excludes fitness, increased 7.6% to $137.8 million, compared to $128.1 million for the quarter ended March 31, 2024.
Net income from continuing operations was $0.9 million, or $0.01 per basic and diluted share, for the quarter ended March 31, 2025, compared to net loss from continuing operations of $16.0 million, or $(0.09) per basic and diluted share, for the quarter ended March 31, 2024.
Adjusted EBITDA from continuing operations was $44.9 million for the quarter ended March 31, 2025, compared to $38.7 million for the quarter ended March 31, 2024.

“EverCommerce’s first quarter results exceeded the top end of our guidance range for both Revenue and Adjusted EBITDA, driven by strong execution and continued active cost management,” said Eric Remer, EverCommerce’s Founder and CEO. “We continue to make solid progress with implementing our transformation and optimization initiatives, which include strategic investments in high margin areas of business such as payments monetization as well as artificial intelligence.”

A reconciliation of GAAP to Non-GAAP measures has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures and Key Performance Metrics.”

Share Repurchases

On May 1, 2025, our Board of Directors approved a $50.0 million increase in the previously announced stock repurchase authorization and extended the authorization through December 31, 2026. The total authorization since the repurchase program began allows for the purchase up to $250.0 million in shares of the Company’s common stock.

The Company repurchased and retired 1.1 million shares of common stock for approximately $11.2 million during the three months ended March 31, 2025. As of March 31, 2025, $21.6 million remained available under the Repurchase Program.

Repurchases under the program may be made from time to time in the open market at prevailing market prices or in negotiated transactions off the market. Open market repurchases will be structured to occur within the pricing and volume requirements of Rule 10b-18. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. This program does not obligate the Company to acquire any particular amount of common stock and the program may be extended, modified, suspended or discontinued at any time at the Company’s discretion. The Company expects to fund repurchases with cash on hand.

Business Outlook

Based on information as of today, May 8, 2025, the Company is issuing the following financial guidance for the second quarter 2025 and full year 2025 from continuing operations, which excludes discontinued operations related to our marketing technology solutions.

Second Quarter 2025:

Revenue is expected to be in the range of $144.5 million to $147.5 million.
Adjusted EBITDA is expected to be in the range of $39.5 million to $41.5 million.

Full Year 2025:

Revenue is expected to be in the range of $581million to $601 million.
Adjusted EBITDA is expected to be in the range of $167.5 million to $175.5 million.

A reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure, is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to certain charges excluded from this non-GAAP measure; in particular, the measures and efforts of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. It is important to note that these charges could be material to EverCommerce’s results computed in accordance with GAAP.

Conference Call Information

EverCommerce’s management team will hold a conference call to discuss our first quarter 2025 results and outlook today, May 8, 2025, at 5:00 p.m. ET. Please visit the “Investor Relations” page of the Company’s website (https://investors.evercomerce.com) for both telephonic and webcast access to this call as well as a copy of the presentation materials used on the call. An archive replay will be available following the conclusion of the call.

Investor Contact
Brad Korch
SVP and Head of Investor Relations
720-796-7664
IR@evercommerce.com

Media Contact
Jeanne Trogan
VP of Communications
737-465-2897
Press@evercommerce.com

About EverCommerce

EverCommerce (Nasdaq: EVCM) is a leading service commerce platform, providing vertically-tailored, integrated SaaS solutions that help more than 740,000 global service-based businesses accelerate growth, streamline operations, and increase retention. Its modern digital and mobile applications create predictable, informed, and convenient experiences between customers and their service professionals. With its EverPro, EverHealth, and EverWell brands specializing in Home, Health, and Wellness service industries, EverCommerce provides end-to-end business management software, embedded payment acceptance, marketing technology, and customer experience applications. Learn more at EverCommerce.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation, statements regarding our future operations and financial results, cost savings initiatives, implementation of our transformation and optimization initiatives, any strategic alternatives involving our marketing technology solutions including an anticipated sale in 2025, our market opportunity, future stock repurchases, our potential for growth and our strategy. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, our limited operating history and evolving business; our recent growth rates may not be sustainable or indicative of future growth; we have experienced net losses in the past and we may not achieve profitability in the future; we may continue to experience significant quarterly and annual fluctuations in our operating results due to a number of factors, which makes our future operating results difficult to predict; in order to support the growth of our business and our acquisition strategy, we may need to incur additional indebtedness or seek capital through new equity or debt financings; we may not be able to continue to expand our share of our existing vertical markets or expand into new vertical markets; we face intense competition in each of the industries in which we operate; the industries in which we operate are rapidly evolving and the market for technology-enabled services that empower SMBs is relatively immature and unproven; we are subject to economic and political risk, the business cycles of our clients and changes in the overall level of consumer and commercial spending, which could negatively impact our business, financial condition and results of operations; we are dependent on payment card networks, such as Visa and MasterCard, and payment processors, such as Worldpay and PayPal, and if we fail to comply with the applicable requirements of our payment networks or our payment processors, they can seek to fine us, suspend us or terminate our agreements and/or terminate our registrations through our bank sponsors; the inability to keep pace with rapid developments and changes in the electronic payments market or are unable to introduce, develop and market new and enhanced versions of our software solutions; real or perceived errors, failures or bugs in our solutions; unauthorized disclosure, destruction or modification of data, disruption of our software or services or cyber breaches; our use of artificial intelligence technologies and evolving regulatory framework governing the use of such technologies; our estimated total addressable market is subject to inherent challenges and uncertainties; failure to effectively develop and expand our sales and marketing capabilities; impairment in the value of our goodwill or intangible assets; our information technology systems and our third-party providers’ information technology systems, including Worldpay, PayPal and other payment processing partners, may fail or our third-party providers may discontinue providing their services or technology generally or to us specifically; our ability to improve our margin, in particular within Marketing Technology Solutions; the impact of a future pandemic, epidemic or outbreak of an infectious disease could impact, our business, financial condition and results of operations, as well as the business or operations of third parties with whom we conduct business; our success in achieving our objectives through acquisitions, divestitures or other strategic transactions; our revenues and profits generated through acquisitions may be less than anticipated, and we may fail to uncover all liabilities of acquisition targets; risks related to scrutiny on environmental sustainability and social initiatives; our ability to adequately protect or enforce our intellectual property and other proprietary rights; risk of patent, trademark and other intellectual property infringement claims; risks related to governmental regulation and other legal obligations, particularly related to privacy, data protection and information security, and our actual or perceived failure to comply with such obligations; risks related to our sponsor stockholders agreement and qualifying as a “controlled company” under the rules of The Nasdaq Stock Market; as well as the other factors described in our Annual Report on Form 10-K for the year ended December 31, 2024 and updated by our other filings with the SEC. These factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

Non-GAAP Financial Measures and Key Performance Metrics

EverCommerce has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). EverCommerce uses these non-GAAP financial measures internally in analyzing its financial results and believes that use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing EverCommerce’s financial results with other companies in its industry, many of which present similar non-GAAP financial measures. Unless otherwise indicated, all non-GAAP financial measures are presented on the basis of continuing operations only.

Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with EverCommerce’s consolidated financial statements prepared in accordance with GAAP. A reconciliation of EverCommerce’s historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rate, Pro Forma Subscription and Transaction Fees Revenue Growth Rate. Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rate, and Pro Forma Subscription and Transaction Fees Revenue Growth Rate are key performance measures that our management uses to assess our consolidated operating performance from continuing operations over time. Management also uses these metrics for planning and forecasting purposes.

Our year-over-year Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rate, and Pro Forma Subscription and Transaction Fees Revenue Growth Rate are calculated as though all acquisitions and divestitures completed as of the end of the latest period were completed as of the first day of the prior year period presented. In calculating Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rate, and Pro Forma Subscription and Transaction Fees Revenue Growth Rate, we add the revenue from acquisitions for the reporting periods prior to the date of acquisition (including estimated purchase accounting adjustments) and exclude revenue from divestitures for the reporting periods prior to the date of divestiture, and then, calculate our revenue growth rate between the two reported periods. As a result, these metrics include pro forma revenue from businesses acquired and excludes revenue from businesses divested of during the period, including revenue generated during periods when we did not yet own the acquired businesses and excludes revenue prior to the divestiture of the business. In including such pre-acquisition revenue and excluding pre-divestiture revenue, these metrics allow us to measure the underlying revenue growth of our business as it stands as of the end of the respective period, which we believe provides insight into our then-current operations. Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rate, and Pro Forma Subscription and Transaction Fees Revenue Growth Rate do not represent organic revenue generated by our business as it stood at the beginning of the respective period. Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rates, and Pro Forma Subscription and Transaction Fees Revenue Growth Rate are not necessarily indicative of either future results of operations or actual results that might have been achieved had the acquisitions and divestitures been consummated on the first day of the prior year period presented. We believe that these metrics are useful to investors in analyzing our financial and operational performance period over period and evaluating the growth of our business, normalizing for the impact of acquisitions and divestitures. These metrics are particularly useful to management due to the number of acquired entities.

Adjusted Gross Profit. Adjusted Gross Profit is a key performance measure that our management uses to assess our operational performance, as it represents the results of revenues and direct costs, which are key components of our operations. We believe that this non-GAAP financial measure is useful to investors and other interested parties in analyzing our financial performance because it reflects the gross profitability of our operations, and excludes the indirect costs associated with our sales and marketing, product development, general and administrative activities, and depreciation and amortization, and the impact of our financing methods and income taxes.

Gross profit is calculated as total revenues less cost of revenues (exclusive of depreciation and amortization), amortization of developed technology, amortization of capitalized software and depreciation expense (allocated to cost of revenues). We calculate Adjusted Gross Profit as gross profit adjusted to exclude depreciation and amortization allocated to cost of revenues. Adjusted Gross Profit should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other GAAP measures of income (loss) or profitability.

Adjusted EBITDA and Adjusted EBITDA margin. Adjusted EBITDA and Adjusted EBITDA margin are key performance measures that our management uses to assess our financial performance and is also used for internal planning and forecasting purposes. We believe that these non-GAAP financial measures are useful to investors and other interested parties in analyzing our financial performance because they provide a comparable overview of our operations across historical periods. In addition, we believe that providing Adjusted EBITDA, together with a reconciliation of net income (loss) to Adjusted EBITDA, helps investors make comparisons between our company and other companies that may have different capital structures, different tax rates, and/or different forms of employee compensation.

Adjusted EBITDA and Adjusted EBITDA margin are used by our management team as additional measures of our performance for purposes of business decision-making, including managing expenditures, and evaluating potential acquisitions. Period-to-period comparisons of Adjusted EBITDA and Adjusted EBITDA margin help our management identify additional trends in our financial results that may not be shown solely by period-to-period comparisons of net income (loss) or income (loss) from continuing operations. In addition, we may use Adjusted EBITDA in the incentive compensation programs applicable to some of our employees. Our Management recognizes that Adjusted EBITDA has inherent limitations because of the excluded items, and may not be directly comparable to similarly titled metrics used by other companies.

We calculate Adjusted EBITDA as net loss adjusted to exclude interest and other expense, net, income tax expense (benefit), depreciation and amortization, other amortization, stock-based compensation, and transaction-related and other non-recurring or unusual costs. Other amortization includes amortization for capitalized contract acquisition costs. Transaction-related costs are specific deal-related costs such as legal fees, financial and tax due diligence, consulting and escrow fees. Other non-recurring or unusual costs are expenses such as impairment charges, (gains) losses from divestitures, system implementation costs, executive separation costs, severance expense related to planned restructuring activities, and costs associated with integration and transformational improvements. Transaction-related and other non-recurring or unusual costs are excluded as they are not representative of our underlying operating performance. Adjusted EBITDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other GAAP measures of income (loss).

EverCommerce Inc. Condensed Consolidated Balance Sheets (in thousands, except per share and share amounts) (unaudited)

	March 31,			December 31,
	2025			2024

Assets
Current assets:
Cash and cash equivalents	$	148,408		$	135,782
Accounts receivable, net of allowance for expected credit losses of $2.1 million and $2.3 million at March 31, 2025 and December 31, 2024, respectively		32,356			31,090
Contract assets		11,115			12,839
Assets held for sale		46,435			11,422
Prepaid expenses and other current assets		30,231			27,181
Total current assets		268,545			218,314
Property and equipment, net		5,907			6,129
Capitalized software, net		43,573			41,595
Other non-current assets		34,912			36,127
Non-current assets held for sale		—			44,779
Intangible assets, net		197,477			211,172
Goodwill		863,686			863,152
Total assets		1,414,100			1,421,268
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	7,533		$	6,599
Accrued expenses and other		54,832			50,840
Deferred revenue		22,122			22,107
Customer deposits		11,857			11,382
Current maturities of long-term debt		5,500			5,500
Liabilities held for sale		15,626			14,298
Total current liabilities		117,470			110,726
Long-term debt, net of current maturities and deferred financing costs		521,364			522,442
Other non-current liabilities		35,697			36,301
Non-current liabilities held for sale		—			973
Total liabilities		674,531			670,442
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.00001 par value, 50,000,000 shares authorized and no shares issued or outstanding as of March 31, 2025 and December 31, 2024		—			—
Common stock, $0.00001 par value, 2,000,000,000 shares authorized and 183,034,613 and 183,725,236 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		2			2
Accumulated other comprehensive loss		(13,841	)		(14,318	)
Additional paid-in capital		1,422,185			1,426,206
Accumulated deficit		(668,777	)		(661,064	)
Total stockholders’ equity		739,569			750,826
Total liabilities and stockholders’ equity	$	1,414,100		$	1,421,268

EverCommerce Inc. Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except per share and share amounts) (unaudited)

	Three months ended March 31,
	2025			2024

Revenues:
Subscription and transaction fees	$	137,779		$	133,382
Other		4,494			4,470
Total revenues		142,273			137,852
Operating expenses:
Cost of revenues (exclusive of depreciation and amortization presented separately below)		31,188			31,501
Sales and marketing		28,783			27,564
Product development		19,963			19,306
General and administrative		31,281			31,641
Depreciation and amortization		16,768			20,904
Loss on held for sale and impairments		85			11,232
Total operating expenses		128,068			142,148
Operating income (loss)		14,205			(4,296	)
Interest and other expense, net		(12,759	)		(5,791	)
Net income (loss) from continuing operations before income tax expense		1,446			(10,087	)
Income tax expense		(512	)		(5,923	)
Net income (loss) from continuing operations		934			(16,010	)
Loss from discontinued operations, net of income tax		(8,647	)		(314	)
Net loss		(7,713	)		(16,324	)
Other comprehensive loss:
Foreign currency translation gain (loss), net		477			(3,535	)
Comprehensive loss	$	(7,236	)	$	(19,859	)

Basic net income (loss) per share attributable to common stockholders:
Continuing operations	$	0.01		$	(0.09	)
Discontinued operations		(0.05	)		—
Total	$	(0.04	)	$	(0.09	)

Diluted net income (loss) per share attributable to common stockholders:
Continuing operations	$	0.01		$	(0.09	)
Discontinued operations		(0.05	)		—
Total	$	(0.04	)	$	(0.09	)

Weighted-average shares of common stock outstanding used in computing net income (loss) per share:
Basic		183,467,698			186,635,095
Diluted		185,222,240			186,635,095

EverCommerce Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)

	Three months ended March 31,
	2025			2024

Cash flows provided by operating activities:
Net loss	$	(7,713	)	$	(16,324	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		17,959			22,951
Stock-based compensation expense		6,940			5,576
Deferred taxes		(335	)		5,316
Amortization of deferred financing costs and non-cash interest		396			410
Loss on held for sale and impairments		9,518			11,231
Bad debt expense		832			1,010
Loss (gain) on interest rate swap valuation adjustments		3,856			(4,824	)
Other non-cash items		1,270			216
Changes in operating assets and liabilities:
Accounts receivable, net		(3,123	)		(4,485	)
Prepaid expenses and other current assets		(1,621	)		(3,087	)
Other non-current assets		(340	)		93
Accounts payable		455			(233	)
Accrued expenses and other		3,973			(6,094	)
Deferred revenue		1,616			2,401
Other non-current liabilities		(3,005	)		(860	)
Net cash provided by operating activities		30,678			13,297
Cash flows used in investing activities:
Purchases of property and equipment		(493	)		(402	)
Capitalization of software costs		(5,065	)		(4,432	)
Proceeds from disposition of fitness solutions, net of transaction costs, cash and restricted cash		(85	)		1,228
Net cash used in investing activities		(5,643	)		(3,606	)
Cash flows used in financing activities:
Payments on long-term debt		(1,375	)		(1,375	)
Exercise of stock options		1,385			1,072
Employee taxes paid for RSU withholdings		(1,182	)		—
Repurchase and retirement of common stock		(11,095	)		(12,068	)
Net cash used in financing activities		(12,267	)		(12,371	)
Effect of foreign currency exchange rate changes on cash		(142	)		(593	)
Net increase (decrease) in cash, cash equivalents and restricted cash, including cash and restricted cash classified as held for sale		12,626			(3,273	)
Cash, cash equivalents and restricted cash, including cash and restricted cash classified as held for sale:
Beginning of period		135,782			96,179
End of period	$	148,408		$	92,906

Supplemental disclosures of cash flow information:
Cash paid for interest	$	9,088		$	11,095
Cash paid for income taxes	$	2,531		$	1,654

EverCommerce Inc. Non-GAAP Financial Measures and Key Performance Metrics (unaudited)

	Three months ended March 31,
	2025		2024
	(in thousands)

Pro Forma Revenue:
Revenue	$	142,273	$	137,852
Plus acquisition revenue / less disposition revenue ⁽¹⁾		—		(5,403	)
Pro Forma Revenue	$	142,273	$	132,449

⁽¹⁾	Acquisition revenue includes the estimated revenue associated with Kickserv prior to the August 10, 2023 acquisition date while the disposition revenue adjustment excludes revenue associated with fitness solutions (see the Pro Forma Revenue and Pro Forma Revenue Growth Rate definition under Non-GAAP financial measures and Key Performance Metrics).

	Three months ended March 31,
	2025		2024
	(in thousands)

Pro Forma Subscription and Transaction Fees Revenue:
Subscription and transaction fees revenue	$	137,779	$	133,382
Plus acquisition revenue / less disposition revenue ⁽¹⁾		—		(5,325	)
Pro Forma Subscription and Transaction Fees Revenue	$	137,779	$	128,057

⁽¹⁾

Acquisition revenue includes the estimated revenue associated with Kickserv prior to the August 10, 2023 acquisition date while the disposition revenue adjustment excludes revenue associated with fitness solutions (see the Pro Forma Subscription and Transaction Revenue and Pro Forma Subscription and Transaction Revenue Growth Rate definition under Non-GAAP financial measures and Key Performance Metrics).

	Three months ended March 31,
	2025		2024
	(in thousands)

Reconciliation from Gross Profit to Adjusted Gross Profit:
Gross profit from continuing operations	$	106,433	$	100,884
Depreciation and amortization		4,652		5,467
Adjusted gross profit from continuing operations	$	111,085	$	106,351

	Three months ended March 31,
	2025		2024
	(in thousands)

Reconciliation from Net loss to Adjusted EBITDA:
Net income (loss) from continuing operations	$	934	$	(16,010	)
Adjusted to exclude the following:
Interest and other expense, net		12,759		5,791
Income tax expense		512		5,923
Depreciation and amortization		16,768		20,904
Other amortization		1,482		1,311
Stock-based compensation expense		6,755		5,410
Transaction-related and other non-recurring or unusual costs		5,735		15,321
Adjusted EBITDA from continuing operations	$	44,945	$	38,650

The MIL Network –

May 9, 2025

MIL-OSI: LPL Financial Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

Key Financial Results:

Net Income was $319 million, translating to diluted earnings per share (“EPS”) of $4.24, up 11% from a year ago
Adjusted EPS* increased 22% year-over-year to $5.15
- Gross profit* increased 19% year-over-year to $1,273 million
- Core G&A* increased 14% year-over-year to $413 million
- Adjusted pre-tax income* increased 23% year-over-year to $509 million

Key Business Results:

Total advisory and brokerage assets increased 25% year-over-year to $1.8 trillion
- Advisory assets increased 23% year-over-year to $977 billion
- Advisory assets as a percentage of total assets decreased to 54.5%, down from 55.0% a year ago
Total organic net new assets were $71 billion, representing 16% annualized growth
- This included $27 billion of assets from Prudential Advisors (“Prudential”) and $16 billion of assets from Wintrust Investments, LLC and certain private client business at Great Lakes Advisors, LLC (collectively, “Wintrust”) that onboarded during the first quarter, as well as $0.7 billion of assets that off-boarded as part of the previously disclosed planned separation from misaligned large OSJs. Prior to these impacts, organic net new assets were $29 billion, translating to a 7% annualized growth rate
Recruited assets⁽¹⁾were $39 billion, up 91% from a year ago
- Recruited assets over the trailing twelve months were a record of $167 billion
Total client cash balances were $53 billion, a decrease of $2 billion sequentially and an increase of $7 billion year-over-year
- Client cash balances as a percentage of total assets were 3.0%, down from 3.2% in the prior quarter and prior year

Key Capital and Liquidity Results:

Corporate cash⁽²⁾was $621 million
Leverage ratio⁽³⁾was 1.82x
Share repurchases were $100 million and dividends paid were $22.4 million

*See the Non-GAAP Financial Measures section and the endnotes to this release for further details about these non-GAAP financial measures

Key Updates

Large Institutions:

Prudential: Completed the onboarding of Prudential, with $67 billion of brokerage and advisory assets, of which $27 billion transitioned onto our platform in Q1
Wintrust: Onboarded Wintrust, with $16 billion of brokerage and advisory assets transitioning onto our platform in Q1
First Horizon Bank (“First Horizon”): In April 2025, announced a strategic relationship agreement with First Horizon to transition support of the broker-dealer and investment advisory services of First Horizon Advisors, Inc., to LPL’s Institution Services platform, expected to be completed in the second half of 2025. First Horizon supports approximately 110 financial advisors who collectively serve $16 billion of client assets

M&A:

Commonwealth Financial Network (“Commonwealth”): Announced a definitive purchase agreement to acquire Commonwealth, a privately-held independent wealth management firm headquartered in Massachusetts. Commonwealth supports approximately 3,000 advisors in the U.S., managing $285 billion of brokerage and advisory assets. The Company expects to close the transaction in the second half of 2025, subject to receipt of regulatory approvals and other closing conditions. Conversion is expected to be completed in mid-2026
Atria Wealth Solutions, Inc. (“Atria”): On-track to complete the conversion in mid-2025
The Investment Center, Inc. (“The Investment Center”): Closed on the acquisition of The Investment Center, with $7 billion of brokerage and advisory assets
Liquidity & Succession: Deployed approximately $100 million of capital to close 10 deals in Q1, including one external practice

Capital Management:

Common Stock Offering: In April 2025, issued $1.7 billion of common stock at a price of $320 per share. Net proceeds from the common stock offering are expected to fund a portion of the cash consideration payable in connection with the acquisition of Commonwealth
Corporate Debt:
- In February 2025, issued $1.25 billion of senior unsecured notes, including $750 million of 5.200% notes due 2030 and $500 million of 5.650% notes due 2035. Net proceeds from this offering were used to repay outstanding borrowings under the Company’s revolving credit facility
- In April 2025, issued $1.50 billion of senior unsecured notes, including $500 million of 4.900% notes due 2028, $500 million of 5.150% notes due 2030 and $500 million of 5.750% notes due 2035. Net proceeds from this offering are expected to fund a portion of the cash consideration payable in connection with the acquisition of Commonwealth

Core G&A:

Lowered the upper end of our 2025 Core G&A* outlook range by $15 million, resulting in an updated range of $1,730 million to $1,765 million. This includes $170 million to $180 million related to Prudential and Atria, but is prior to costs associated with Commonwealth

SAN DIEGO, May 08, 2025 (GLOBE NEWSWIRE) — LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”) today announced results for its first quarter ended March 31, 2025, reporting net income of $319 million, or $4.24 per share. This compares with $289 million, or $3.83 per share, in the first quarter of 2024 and $271 million, or $3.59 per share, in the prior quarter.

“It’s been a strong start to the year for LPL,” said Rich Steinmeier, CEO. “We delivered another quarter of strong business performance, reported excellent financial results, and reached an agreement to acquire Commonwealth, significantly accelerating our progress toward our vision to be the best firm in wealth management.”

“In the first quarter, we delivered solid business performance and financial results,” said Matt Audette, President and CFO. “We onboarded Prudential and Wintrust and are preparing to onboard First Horizon later this year. As a complement to our strong organic growth, we closed and onboarded the acquisition of The Investment Center in March, continue to prepare to onboard our Atria advisors, and lastly, entered into an agreement to acquire Commonwealth Financial Network. Looking ahead, our business momentum and financial strength position us well to continue delivering shareholder value.”

Dividend Declaration

The Company’s Board of Directors declared a $0.30 per share dividend to be paid on June 12, 2025 to all stockholders of record as of May 30, 2025.

Conference Call and Additional Information

The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Thursday, May 8, 2025. The conference call will be accessible and available for replay at investor.lpl.com/events.

Contacts

Investor Relations
investor.relations@lplfinancial.com

Media Relations
media.relations@lplfinancial.com

About LPL Financial

LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace⁽⁴⁾, LPL supports over 29,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.8 trillion in brokerage and advisory assets on behalf of approximately 7 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com.

Securities and advisory services offered through LPL Financial LLC (“LPL Financial”) or its affiliate LPL Enterprise, LLC (“LPL Enterprise”), both registered investment advisers and broker-dealers. Members FINRA/SIPC.

Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial or LPL Enterprise.

We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.

Forward-Looking Statements

This press release contains statements regarding:

the expected closing of the Company’s acquisition of Commonwealth;
the use of proceeds from the issuance of common stock and senior notes to fund a portion of the cash consideration payable in connection with the acquisition of Commonwealth;
the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Atria, Commonwealth, First Horizon and The Investment Center;
the Company’s future financial and operating results, growth, plans, priorities and business strategies, including forecasts and statements related to the Company’s ICA yield, service and fee revenue, transaction revenue, core G&A expense, promotional expense, interest expense and income, depreciation and amortization, leverage ratio (including plans to reduce leverage) and share repurchases; and
future capabilities, future advisor service experience, future investments and capital deployment, including share repurchase activity and dividends, if any, and long-term shareholder value.

These and any other statements that are not related to present facts or current conditions, or that are not purely historical, constitute forward-looking statements. They reflect the Company’s expectations and objectives as of May 8, 2025 and are not guarantees that expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include:

the failure to satisfy the closing conditions applicable to the Company’s purchase agreement with Commonwealth, including regulatory approvals;
difficulties and delays in onboarding the assets of acquired, recruited or transitioned advisors, including the receipt and timing of regulatory approvals that may be required;
disruptions in the businesses of the Company and Commonwealth that could make it more difficult to maintain relationships with advisors and their clients;
the choice by clients of acquired or recruited advisors not to open brokerage and/or advisory accounts at the Company;
changes in general economic and financial market conditions, including retail investor sentiment;
changes in interest rates and fees payable by banks participating in the Company’s client cash programs, including the Company’s success in negotiating agreements with current or additional counterparties;
the Company’s strategy and success in managing client cash program fees;
fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenue;
effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions, and their ability to provide financial products and services effectively;
whether retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company;
changes in the growth and profitability of the Company’s fee-based offerings and asset-based revenues;
the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations;
the cost of defending, settling and remediating issues related to regulatory matters or legal proceedings, including civil monetary penalties or actual costs of reimbursing customers for losses in excess of our reserves or insurance;
changes made to the Company’s services and pricing, including in response to competitive developments and current, pending and future legislation, regulation and regulatory actions, and the effect that such changes may have on the Company’s gross profit streams and costs;
the execution of the Company’s capital management plans, including its compliance with the terms of the Company’s amended and restated credit agreement, the committed revolving credit facilities of the Company and LPL Financial, and the indentures governing the Company’s senior unsecured notes;
strategic acquisitions and investments, including pursuant to the Company’s Liquidity & Succession solution, and the effect that such acquisitions and investments may have on the Company’s capital management plans and liquidity;
the price, availability and trading volumes of shares of the Company’s common stock, which will affect the timing and size of future share repurchases by the Company, if any;
the execution of the Company’s plans and its success in realizing the synergies, expense savings, service improvements or efficiencies expected to result from its investments, initiatives and acquisitions, expense plans and technology initiatives;
whether advisors affiliated with Atria, Commonwealth, First Horizon, and The Investment Center will transition registration to the Company and whether assets reported as serviced by such financial advisors will translate into assets of the Company;
the performance of third-party service providers to which business processes have been transitioned;
the Company’s ability to control operating risks, information technology systems risks, cybersecurity risks and sourcing risks; and
the other factors set forth in the Company’s most recent Annual Report on Form 10-K, as may be amended or updated in the Company’s Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission.

Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this earnings release, and you should not rely on statements contained herein as representing the Company’s view as of any date subsequent to the date of this press release.

LPL Financial Holdings Inc. Condensed Consolidated Statements of Income (In thousands, except per share data) (Unaudited)

	Three Months Ended							Three Months Ended
	March 31,			December 31,				March 31,
		2025			2024	Change			2024	Change
REVENUE
Advisory	$	1,689,245		$	1,595,834	6	%	$	1,199,811	41	%
Commission:
Sales-based		610,038			525,795	16	%		385,235	58	%
Trailing		437,719			439,668	—	%		361,211	21	%
Total commission		1,047,757			965,463	9	%		746,446	40	%
Asset-based:
Client cash		392,031			378,816	3	%		352,382	11	%
Other asset-based		303,210			290,962	4	%		248,339	22	%
Total asset-based		695,241			669,778	4	%		600,721	16	%
Service and fee		145,199			139,119	4	%		132,172	10	%
Transaction		67,864			61,535	10	%		57,258	19	%
Interest income, net		43,851			46,680	(6	%)		43,525	1	%
Other		(19,150	)		33,942	n/m			52,660	n/m
Total revenue		3,670,007			3,512,351	4	%		2,832,593	30	%
EXPENSE
Advisory and commission		2,353,925			2,250,427	5	%		1,733,487	36	%
Compensation and benefits		305,546			321,933	(5	%)		274,369	11	%
Promotional		145,645			162,057	(10	%)		126,619	15	%
Depreciation and amortization		92,356			92,032	—	%		67,158	38	%
Interest expense on borrowings		85,862			81,979	5	%		60,082	43	%
Occupancy and equipment		77,240			75,538	2	%		66,264	17	%
Brokerage, clearing and exchange		44,138			34,789	27	%		30,532	45	%
Amortization of other intangibles		43,521			42,614	2	%		29,552	47	%
Professional services		36,326			32,055	13	%		13,279	174	%
Communications and data processing		19,506			18,772	4	%		19,744	(1	%)
Other		48,689			58,874	(17	%)		37,315	30	%
Total expense		3,252,754			3,171,070	3	%		2,458,401	32	%
INCOME BEFORE PROVISION FOR INCOME TAXES		417,253			341,281	22	%		374,192	12	%
PROVISION FOR INCOME TAXES		98,680			70,532	40	%		85,428	16	%
NET INCOME	$	318,573		$	270,749	18	%	$	288,764	10	%
EARNINGS PER SHARE
Earnings per share, basic	$	4.27		$	3.62	18	%	$	3.87	10	%
Earnings per share, diluted	$	4.24		$	3.59	18	%	$	3.83	11	%
Weighted-average shares outstanding, basic		74,600			74,785	—	%		74,562	—	%
Weighted-average shares outstanding, diluted		75,112			75,337	—	%		75,463	—	%

LPL Financial Holdings Inc. Condensed Consolidated Statements of Financial Condition (In thousands, except share data) (Unaudited)

	March 31, 2025			December 31, 2024
ASSETS
Cash and equivalents	$	1,229,181		$	967,079
Cash and equivalents segregated under federal or other regulations		1,513,037			1,597,249
Restricted cash		112,458			119,724
Receivables from clients, net		613,766			633,834
Receivables from brokers, dealers and clearing organizations		112,249			76,545
Advisor loans, net		2,468,033			2,281,088
Other receivables, net		939,411			902,777
Investment securities ($122,729 and $42,267 at fair value at March 31, 2025 and December 31, 2024, respectively)		138,007			57,481
Property and equipment, net		1,237,693			1,210,027
Goodwill		2,213,100			2,172,873
Other intangibles, net		1,570,558			1,482,988
Other assets		1,815,729			1,815,739
Total assets	$	13,963,222		$	13,317,404
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Client payables	$	2,045,285		$	1,898,665
Payables to brokers, dealers and clearing organizations		252,035			129,228
Accrued advisory and commission expenses payable		303,837			323,996
Corporate debt and other borrowings, net		5,686,678			5,494,724
Accounts payable and accrued liabilities		479,803			588,450
Other liabilities		2,071,801			1,951,739
Total liabilities		10,839,439			10,386,802
STOCKHOLDERS’ EQUITY:
Common stock, $0.001 par value; 600,000,000 shares authorized; 131,194,549 shares and 130,914,541 shares issued at March 31, 2025 and December 31, 2024, respectively		131			131
Additional paid-in capital		2,089,155			2,066,268
Treasury stock, at cost — 56,611,181 shares and 56,253,909 shares at March 31, 2025 and December 31, 2024, respectively		(4,331,582	)		(4,202,322	)
Retained earnings		5,366,079			5,066,525
Total stockholders’ equity		3,123,783			2,930,602
Total liabilities and stockholders’ equity	$	13,963,222		$	13,317,404

LPL Financial Holdings Inc.
Management’s Statements of Operations
(In thousands, except per share data)
(Unaudited)

Certain information in this release is presented as reviewed by the Company’s management and includes information derived from the Company’s unaudited condensed consolidated statements of income, non-GAAP financial measures and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled “Non-GAAP Financial Measures” in this release.

	Quarterly Results
	Q1 2025			Q4 2024			Change		Q1 2024			Change
Gross Profit₍₅₎
Advisory	$	1,689,245		$	1,595,834		6	%	$	1,199,811		41	%
Trailing commissions		437,719			439,668		—	%		361,211		21	%
Sales-based commissions		610,038			525,795		16	%		385,235		58	%
Advisory fees and commissions		2,737,002			2,561,297		7	%		1,946,257		41	%
Production-based payout₍₆₎		(2,374,368	)		(2,248,674	)	6	%		(1,686,332	)	41	%
Advisory fees and commissions, net of payout		362,634			312,623		16	%		259,925		40	%
Client cash₍₇₎		408,224			397,001		3	%		373,408		9	%
Other asset-based₍₈₎		303,210			290,962		4	%		248,339		22	%
Service and fee		145,199			139,119		4	%		132,172		10	%
Transaction		67,864			61,535		10	%		57,258		19	%
Interest income, net₍₉₎		27,637			28,481		(3	%)		22,482		23	%
Other revenue₍₁₀₎		2,023			32,705		(94	%)		3,382		(40	%)
Total net advisory fees and commissions and attachment revenue		1,316,791			1,262,426		4	%		1,096,966		20	%
Brokerage, clearing and exchange expense		(44,138	)		(34,789	)	27	%		(30,532	)	45	%
Gross Profit₍₅₎		1,272,653			1,227,637		4	%		1,066,434		19	%
G&A Expense
Core G&A₍₁₁₎		413,069			421,894		(2	%)		363,513		14	%
Regulatory charges		6,887			7,335		(6	%)		7,469		(8	%)
Promotional (ongoing)₍₁₂₎₍₁₃₎		151,932			173,191		(12	%)		132,311		15	%
Acquisition costs excluding interest₍₁₃₎		43,407			37,261		16	%		9,524		n/m
Employee share-based compensation		18,366			26,067		(30	%)		22,633		(19	%)
Total G&A		633,661			665,748		(5	%)		535,450		18	%
Loss on extinguishment of debt		—			3,983		(100	%)		—		—	%
EBITDA₍₁₄₎		638,992			557,906		15	%		530,984		20	%
Depreciation and amortization		92,356			92,032		—	%		67,158		38	%
Amortization of other intangibles		43,521			42,614		2	%		29,552		47	%
Interest expense on borrowings₍₁₅₎		80,725			81,979		(2	%)		60,082		34	%
Acquisition costs – interest₍₁₃₎		5,137			—		100	%		—		100	%
INCOME BEFORE PROVISION FOR INCOME TAXES		417,253			341,281		22	%		374,192		12	%
PROVISION FOR INCOME TAXES		98,680			70,532		40	%		85,428		16	%
NET INCOME	$	318,573		$	270,749		18	%	$	288,764		10	%
Earnings per share, diluted	$	4.24		$	3.59		18	%	$	3.83		11	%
Weighted-average shares outstanding, diluted		75,112			75,337		—	%		75,463		—	%
Adjusted EBITDA₍₁₄₎	$	682,399		$	584,783		17	%	$	540,508		26	%
Adjusted pre-tax income₍₁₆₎	$	509,318		$	410,772		24	%	$	413,268		23	%
Adjusted EPS₍₁₇₎	$	5.15		$	4.25		21	%	$	4.21		22	%

LPL Financial Holdings Inc. Operating Metrics (Dollars in billions, except where noted) (Unaudited)

	Q1 2025			Q4 2024			Change	Q1 2024			Change
Market Drivers
S&P 500 Index (end of period)		5,612			5,882		(5%)		5,254		7%
Russell 2000 Index (end of period)		2,012			2,230		(10%)		2,125		(5%)
Fed Funds daily effective rate (average bps)		433			466		(33bps)		533		(100bps)

Advisory and Brokerage Assets₍₁₈₎
Advisory assets	$	977.4		$	957.0		2%	$	793.0		23%
Brokerage assets		817.5			783.7		4%		647.9		26%
Total Advisory and Brokerage Assets	$	1,794.9		$	1,740.7		3%	$	1,440.9		25%
Advisory as a % of Total Advisory and Brokerage Assets		54.5	%		55.0	%	(50bps)		55.0	%	(50bps)

Assets by Platform
Corporate advisory assets₍₁₉₎	$	699.1		$	678.3		3%	$	537.6		30%
Independent RIA advisory assets₍₁₉₎		278.3			278.7		—%		255.4		9%
Brokerage assets		817.5			783.7		4%		647.9		26%
Total Advisory and Brokerage Assets	$	1,794.9		$	1,740.7		3%	$	1,440.9		25%

Centrally Managed Assets
Centrally managed assets₍₂₀₎	$	164.4		$	160.0		3%	$	121.7		35%
Centrally Managed as a % of Total Advisory Assets		16.8	%		16.7	%	10bps		15.3	%	150bps

LPL Financial Holdings Inc. Operating Metrics (Dollars in billions, except where noted) (Unaudited)

	Q1 2025			Q4 2024			Change	Q1 2024			Change
Organic Net New Assets (NNA)₍₂₁₎
Organic net new advisory assets	$	35.7		$	49.3		n/m	$	16.2		n/m
Organic net new brokerage assets		35.2			18.8		n/m		0.5		n/m
Total Organic Net New Assets	$	70.9		$	68.0		n/m	$	16.7		n/m

Acquired Net New Assets₍₂₁₎
Acquired net new advisory assets	$	1.9		$	21.8		n/m	$	—		n/m
Acquired net new brokerage assets		6.0			67.5		n/m		—		n/m
Total Acquired Net New Assets	$	7.9		$	89.3		n/m	$	—		n/m

Total Net New Assets₍₂₁₎
Net new advisory assets	$	37.6		$	71.1		n/m	$	16.2		n/m
Net new brokerage assets		41.2			86.2		n/m		0.5		n/m
Total Net New Assets	$	78.8		$	157.3		n/m	$	16.7		n/m

Net brokerage to advisory conversions₍₂₂₎	$	5.9		$	4.8		n/m	$	3.6		n/m
Organic advisory NNA annualized growth₍₂₃₎		14.9	%		22.1	%	n/m		8.8	%	n/m
Total organic NNA annualized growth₍₂₃₎		16.3	%		17.1	%	n/m		4.9	%	n/m

Net New Advisory Assets₍₂₁₎
Corporate RIA net new advisory assets	$	31.7		$	64.5		n/m	$	13.9		n/m
Independent RIA net new advisory assets		5.9			6.6		n/m		2.3		n/m
Total Net New Advisory Assets	$	37.6		$	71.1		n/m	$	16.2		n/m
Centrally managed net new advisory assets₍₂₁₎	$	6.5		$	24.9		n/m	$	3.6		n/m

Net buy (sell) activity₍₂₄₎	$	42.0		$	38.3		n/m	$	37.8		n/m

_{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc. Client Cash Data (Dollars in thousands, except where noted) (Unaudited)

	Q1 2025			Q4 2024			Change	Q1 2024			Change
Client Cash Balances (in billions)₍₂₅₎
Insured cash account sweep	$	36.1		$	38.3		(6%)	$	32.6		11%
Deposit cash account sweep		10.7			10.7		—%		9.2		16%
Total Bank Sweep		46.8			49.0		(4%)		41.8		12%
Money market sweep		4.3			4.3		—%		2.4		79%
Total Client Cash Sweep Held by Third Parties		51.1			53.3		(4%)		44.2		16%
Client cash account (CCA)		1.9			1.8		6%		2.1		(10%)
Total Client Cash Balances	$	53.1		$	55.1		(4%)	$	46.3		15%
Client Cash Balances as a % of Total Assets		3.0	%		3.2	%	(20bps)		3.2	%	(20bps)

_{Note: Totals may not foot due to rounding.}

	Three Months Ended
	March 31, 2025					December 31, 2024					March 31, 2024
Interest-Earnings Assets	Average Balance (in billions)		Revenue		Net Yield (bps)₍₂₆₎	Average Balance (in billions)		Revenue		Net Yield (bps)₍₂₆₎	Average Balance (in billions)		Revenue		Net Yield (bps)₍₂₆₎
Insured cash account sweep	$	36.0	$	299,618	337	$	34.8	$	292,661	335	$	33.2	$	266,792	323
Deposit cash account sweep		10.2		89,728	356		9.8		83,879	340		8.9		83,978	378
Total Bank Sweep		46.2		389,346	341		44.6		376,540	336		42.1		350,770	335
Money market sweep		4.1		2,685	26		3.3		2,277	28		2.3		1,612	28
Total Client Cash Held By Third Parties		50.4		392,031	316		47.9		378,817	315		44.4		352,382	319
Client cash account (CCA)		1.8		16,193	368		1.8		18,184	407		1.8		21,026	467
Total Client Cash		52.2		408,224	317		49.7		397,001	318		46.2		373,408	325
Margin receivables		0.6		11,444	789		0.6		11,506	829		0.5		10,249	890
Other interest revenue		1.3		16,193	512		1.3		16,975	524		0.9		12,233	535
Total Client Cash and Interest Income, Net	$	54.0	$	435,861	327	$	51.6	$	425,482	329	$	47.6	$	395,890	334

_{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc. Monthly Metrics (Dollars in billions, except where noted) (Unaudited)

	March 2025		February 2025		Change	January 2025		December 2024
Advisory and Brokerage Assets₍₁₈₎
Advisory assets	$	977.4	$	995.0	(2%)	$	992.4	$	957.0
Brokerage assets		817.5		828.2	(1%)		819.4		783.7
Total Advisory and Brokerage Assets	$	1,794.9	$	1,823.1	(2%)	$	1,811.8	$	1,740.7

Organic Net New Assets (NNA)₍₂₁₎
Organic net new advisory assets	$	12.7	$	9.6	n/m	$	13.4	$	12.5
Organic net new brokerage assets		0.5		14.1	n/m		20.5		12.9
Total Organic Net New Assets	$	13.1	$	23.8	n/m	$	34.0	$	25.5

Acquired Net New Assets₍₂₁₎
Acquired net new advisory assets	$	1.8	$	—	n/m	$	0.1	$	—
Acquired net new brokerage assets		5.3		0.7	n/m		—	$	0.2
Total Acquired Net New Assets	$	7.1	$	0.7	n/m	$	0.1	$	0.3

Total Net New Assets₍₂₁₎
Net new advisory assets	$	14.5	$	9.6	n/m	$	13.5	$	12.6
Net new brokerage assets		5.8		14.8	n/m		20.6		13.2
Total Net New Assets	$	20.2	$	24.5	n/m	$	34.1	$	25.8
Net brokerage to advisory conversions₍₂₂₎	$	1.9	$	1.9	n/m	$	2.1	$	2.0

Client Cash Balances₍₂₅₎
Insured cash account sweep	$	36.1	$	35.6	1%	$	36.2	$	38.3
Deposit cash account sweep		10.7		10.2	5%		10.0		10.7
Total Bank Sweep		46.8		45.8	2%		46.3		49.0
Money market sweep		4.3		4.0	8%		4.1		4.3
Total Client Cash Sweep Held by Third Parties		51.1		49.8	3%		50.4		53.3
Client cash account (CCA)		1.9		1.5	27%		1.8		1.8
Total Client Cash Balances	$	53.1	$	51.3	4%	$	52.2	$	55.1

Net buy (sell) activity₍₂₄₎	$	13.2	$	14.3	n/m	$	14.5	$	13.5

Market Drivers
S&P 500 Index (end of period)		5,612		5,955	(6%)		6,041		5,882
Russell 2000 Index (end of period)		2,012		2,163	(7%)		2,288		2,230
Fed Funds effective rate (average bps)		433		433	—bps		433		448

_{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc. Financial Measures (Dollars in thousands, except where noted) (Unaudited)

	Q1 2025			Q4 2024			Change	Q1 2024			Change
Commission Revenue by Product
Annuities	$	615,594		$	561,918		10%	$	436,473		41%
Mutual funds		233,895			232,529		1%		186,540		25%
Fixed income		61,553			59,332		4%		48,641		27%
Equities		49,074			45,829		7%		35,451		38%
Other		87,641			65,855		33%		39,341		123%
Total commission revenue	$	1,047,757		$	965,463		9%	$	746,446		40%

Commission Revenue by Sales-based and Trailing
Sales-based commissions
Annuities	$	365,767		$	314,591		16%	$	229,077		60%
Mutual funds		55,607			52,908		5%		43,496		28%
Fixed income		61,553			59,332		4%		48,641		27%
Equities		49,074			45,829		7%		35,451		38%
Other		78,037			53,135		47%		28,570		173%
Total sales-based commissions	$	610,038		$	525,795		16%	$	385,235		58%
Trailing commissions
Annuities	$	249,827		$	247,327		1%	$	207,396		20%
Mutual funds		178,288			179,621		(1%)		143,044		25%
Other		9,604			12,720		(24%)		10,771		(11%)
Total trailing commissions	$	437,719		$	439,668		—%	$	361,211		21%
Total commission revenue	$	1,047,757		$	965,463		9%	$	746,446		40%

Payout Rate₍₆₎		86.75	%		87.79	%	(104bps)		86.64	%	11bps

LPL Financial Holdings Inc. Capital Management Measures (Dollars in thousands, except where noted) (Unaudited)

	Q1 2025			Q4 2024
Cash and equivalents	$	1,229,181		$	967,079
Cash at regulated subsidiaries		(1,085,459	)		(884,779	)
Excess cash at regulated subsidiaries per the Credit Agreement		476,908			397,138
Corporate Cash₍₂₎	$	620,630		$	479,438

Corporate Cash₍₂₎
Cash at LPL Holdings, Inc.	$	104,080		$	39,782
Excess cash at regulated subsidiaries per the Credit Agreement		476,908			397,138
Cash at non-regulated subsidiaries		39,642			42,518
Corporate Cash	$	620,630		$	479,438

Leverage Ratio
Total debt	$	5,720,000		$	5,517,000
Total corporate cash		620,630			479,438
Credit Agreement Net Debt	$	5,099,370		$	5,037,562
Credit Agreement EBITDA (trailing twelve months)₍₂₇₎	$	2,797,285		$	2,665,033
Leverage Ratio	1.82x			1.89x

	March 31, 2025
Total Debt	Balance		Current Applicable Margin	Interest Rate		Maturity
Revolving Credit Facility_(a)	$	—	ABR+37.5 bps / SOFR+147.5 bps	5.794	%	5/20/2029
Broker-Dealer Revolving Credit Facility		—	SOFR+135 bps	5.760	%	5/19/2025
Senior Unsecured Term Loan A		1,020,000	SOFR+147.5 bps_(b)	5.798	%	12/5/2026
Senior Unsecured Notes		500,000	5.700% Fixed	5.700	%	5/20/2027
Senior Unsecured Notes		400,000	4.625% Fixed	4.625	%	11/15/2027
Senior Unsecured Notes		750,000	6.750% Fixed	6.750	%	11/17/2028
Senior Unsecured Notes		900,000	4.000% Fixed	4.000	%	3/15/2029
Senior Unsecured Notes		750,000	5.200% Fixed	5.200	%	3/15/2030
Senior Unsecured Notes		400,000	4.375% Fixed	4.375	%	5/15/2031
Senior Unsecured Notes		500,000	6.000% Fixed	6.000	%	5/20/2034
Senior Unsecured Notes		500,000	5.650% Fixed	5.650	%	3/15/2035
Total / Weighted Average	$	5,720,000		5.376	%

_{(a) Unsecured borrowing capacity of $2.25 billion at LPL Holdings, Inc.}
_{(b) The SOFR rate option is a one-month SOFR rate and subject to an interest rate floor of 0 bps.}

LPL Financial Holdings Inc. Key Business and Financial Metrics (Dollars in thousands, except where noted) (Unaudited)

	Q1 2025			Q4 2024			Change	Q1 2024			Change
Business Metrics
Advisors		29,493			28,888		2%		22,884		29%
Net new advisors		605			5,202		(88%)		224		170%
Annualized advisory fees and commissions per advisor₍₂₈₎	$	375		$	390		(4%)	$	342		10%
Average total assets per advisor ($ in millions)₍₂₉₎	$	60.9		$	60.3		1%	$	63.0		(3%)
Transition assistance loan amortization ($ in millions)₍₃₀₎	$	81.8		$	76.3		7%	$	58.3		40%
Total client accounts (in millions)		10.4			10.0		4%		8.4		24%
Recruited AUM ($ in billions)		38.6			78.7		(51%)		20.2		91%

Employees₍₃₁₎		9,118			9,051		1%		8,252		10%

AUM retention rate (quarterly annualized)₍₃₂₎		98.2	%		97.3	%	90bps		97.4	%	80bps

Capital Management
Capital expenditures ($ in millions)₍₃₃₎	$	119.5		$	165.5		(28%)	$	121.0		(1%)
Acquisitions, net ($ in millions)₍₃₄₎	$	95.1		$	847.9		(89%)	$	10.2		n/m

Share repurchases ($ in millions)	$	100.0		$	100.0		—%	$	70.0		43%
Dividends ($ in millions)		22.4			22.5		—%		22.4		—%
Total Capital Returned ($ in millions)	$	122.4		$	122.5		—%	$	92.4		32%

Non-GAAP Financial Measures

Management believes that presenting certain non-GAAP financial measures by excluding or including certain items can be helpful to investors and analysts who may wish to use this information to analyze the Company’s current performance, prospects and valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non-GAAP financial measures and metrics discussed below are appropriate for evaluating the performance of the Company.

Adjusted EPS and Adjusted net income

Adjusted EPS is defined as adjusted net income, a non-GAAP measure defined as net income plus the after-tax impact of amortization of other intangibles, acquisition costs, losses on extinguishment of debt, and amounts related to the departure of the Company’s former Chief Executive Officer, divided by the weighted average number of diluted shares outstanding for the applicable period. The Company presents adjusted net income and adjusted EPS because management believes that these metrics can provide investors with useful insight into the Company’s core operating performance by excluding non-cash items, acquisition costs, and certain other charges that management does not believe impact the Company’s ongoing operations. Adjusted net income and adjusted EPS are not measures of the Company’s financial performance under GAAP and should not be considered as alternatives to net income, earnings per diluted share or any other performance measure derived in accordance with GAAP. For a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS, please see the endnote disclosures in this release.

Gross profit

Gross profit is calculated as total revenue less advisory and commission expense; brokerage, clearing and exchange expense; and market fluctuations on employee deferred compensation. All other expense categories, including depreciation and amortization of property and equipment and amortization of other intangibles, are considered general and administrative in nature. Because the Company’s gross profit amounts do not include any depreciation and amortization expense, the Company considers gross profit to be a non-GAAP financial measure that may not be comparable to similar measures used by others in its industry. Management believes that gross profit can provide investors with useful insight into the Company’s core operating performance before indirect costs that are general and administrative in nature. For a calculation of gross profit, please see the endnote disclosures in this release.

Core G&A

Core G&A consists of total expense less the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; losses on extinguishment of debt; promotional (ongoing); employee share-based compensation; regulatory charges; and acquisition costs. Management presents core G&A because it believes core G&A reflects the corporate expense categories over which management can generally exercise a measure of control, compared with expense items over which management either cannot exercise control, such as advisory and commission, or which management views as promotional expense necessary to support advisor growth and retention, including conferences and transition assistance. Core G&A is not a measure of the Company’s total expense as calculated in accordance with GAAP. For a reconciliation of the Company’s total expense to core G&A, please see the endnote disclosures in this release. The Company does not provide an outlook for its total expense because it contains expense components, such as advisory and commission, that are market-driven and over which the Company cannot exercise control. Accordingly, a reconciliation of the Company’s outlook for total expense to an outlook for core G&A cannot be made available without unreasonable effort.

EBITDA and Adjusted EBITDA

EBITDA is defined as net income plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles. Adjusted EBITDA is defined as EBITDA, a non-GAAP measure, plus acquisition costs, amounts related to the departure of the Company’s former Chief Executive Officer, and losses on extinguishment of debt. The Company presents EBITDA and adjusted EBITDA because management believes that they can be useful financial metrics in understanding the Company’s earnings from operations. EBITDA and adjusted EBITDA are not measures of the Company’s financial performance under GAAP and should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to EBITDA and adjusted EBITDA, please see the endnote disclosures in this release.

Adjusted pre-tax income

Adjusted pre-tax income is defined as income before provision for income taxes plus amortization of other intangibles, acquisition costs, amounts related to the departure of the Company’s former Chief Executive Officer, and losses on extinguishment of debt. The Company presents adjusted pre-tax income because management believes that it can provide investors with useful insight into the Company’s core operating performance by excluding non-cash items, acquisition costs, and certain other charges that management does not believe impact the Company’s ongoing operations. Adjusted pre-tax income is not a measure of the Company’s financial performance under GAAP and should not be considered as an alternative to income before provision for income taxes or any other performance measure derived in accordance with GAAP. For a reconciliation of income before provision for income taxes to adjusted pre-tax income, please see the endnote disclosures in this release.

Credit Agreement EBITDA

Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company’s amended and restated credit agreement (“Credit Agreement”) as “Consolidated EBITDA,” which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company’s debt capacity and covenant compliance under its Credit Agreement. Credit Agreement EBITDA is not a measure of the Company’s financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to Credit Agreement EBITDA, please see the endnote disclosures in this release.

Endnote Disclosures

(1)	Represents the estimated total advisory and brokerage assets expected to transition to the Company’s primary broker-dealer subsidiary, LPL Financial, in connection with advisors who transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and fully verified by LPL Financial. The actual transition of assets to LPL Financial generally occurs over several quarters and the actual amount transitioned may vary from the estimate.
(2)	Corporate cash, a component of cash and equivalents, is the sum of cash and equivalents from the following: (1) cash and equivalents held at LPL Holdings, Inc., (2) cash and equivalents held at regulated subsidiaries as defined by the Company’s Credit Agreement, which include LPL Financial, LPL Enterprise, LLC, The Private Trust Company, N.A. and certain of Atria’s introducing broker-dealer subsidiaries, in excess of the capital requirements of the Company’s Credit Agreement and (3) cash and equivalents held at non-regulated subsidiaries.
(3)	Compliance with the Leverage Ratio is only required under the Company’s revolving credit facility.
(4)	The Company was named a Top RIA custodian (Cerulli Associates, 2024 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S. (based on total revenues, Financial Planning magazine 1996-2022); and, among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 on Financial Institution Market Share; No. 1 on Share of Advisors (2021-2022 Kehrer Bielan Research and Consulting Annual TPM Report). Fortune 500 as of June 2021.
(5)	Gross profit is a non-GAAP financial measure. Please see a description of gross profit under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a calculation of gross profit for the periods presented (in thousands):

	Q1 2025			Q4 2024			Q1 2024
Total revenue_(a)	$	3,670,007		$	3,512,351		$	2,832,593
Advisory and commission expense		2,353,925			2,250,427			1,733,487
Brokerage, clearing and exchange expense		44,138			34,789			30,532
Employee deferred compensation		(709	)		(502	)		2,140
Gross profit_(a)	$	1,272,653		$	1,227,637		$	1,066,434

	(a)	The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.

(6)

Production-based payout is a financial measure calculated as advisory and commission expense plus (less) advisor deferred compensation. The payout rate is calculated by dividing the production-based payout by total advisory and commission revenue. Below is a reconciliation of the Company’s advisory and commission expense to the production-based payout and a calculation of the payout rate for the periods presented (in thousands, except payout rate):

	Q1 2025			Q4 2024			Q1 2024
Advisory and commission expense	$	2,353,925		$	2,250,427		$	1,733,487
Plus (Less): Advisor deferred compensation		20,443			(1,753	)		(47,155	)
Production-based payout	$	2,374,368		$	2,248,674		$	1,686,332

Advisory and commission revenue	$	2,737,002		$	2,561,297		$	1,946,257

Payout rate		86.75	%		87.79	%		86.64	%

(7)	Below is a reconciliation of client cash revenue per Management’s Statements of Operations to client cash revenue, a component of asset-based revenue, on the Company’s condensed consolidated statements of income for the periods presented (in thousands):


	Q1 2025			Q4 2024			Q1 2024
Client cash on Management’s Statement of Operations	$	408,224		$	397,001		$	373,408
Interest income on CCA balances segregated under federal or other regulations₍₉₎		(16,193	)		(18,185	)		(21,026	)
Client cash on Condensed Consolidated Statements of Income	$	392,031		$	378,816		$	352,382

(8)	Consists of revenue from the Company’s sponsorship programs with financial product manufacturers, omnibus processing and networking services but does not include fees from client cash programs.
(9)	Below is a reconciliation of interest income, net per Management’s Statements of Operations to interest income, net on the Company’s condensed consolidated statements of income for the periods presented (in thousands):

	Q1 2025		Q4 2024		Q1 2024
Interest income, net on Management’s Statement of Operations	$	27,637	$	28,481	$	22,482
Interest income on CCA balances segregated under federal or other regulations₍₇₎		16,193		18,185		21,026
Interest income on deferred compensation		21		14		17
Interest income, net on Condensed Consolidated Statements of Income	$	43,851	$	46,680	$	43,525

(10)	Below is a reconciliation of other revenue per Management’s Statements of Operations to other revenue on the Company’s condensed consolidated statements of income for the periods presented (in thousands):

	Q1 2025			Q4 2024			Q1 2024
Other revenue on Management’s Statement of Operations_(a)	$	2,023		$	32,705		$	3.382
Interest income on deferred compensation		(21	)		(14	)		(17	)
Deferred compensation		(21,152	)		1,251			49,295
Other revenue on Condensed Consolidated Statements of Income	$	(19,150	)	$	33,942		$	52,660

	(a)	The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.

(11)	Core G&A is a non-GAAP financial measure. Please see a description of core G&A under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of the Company’s total expense to core G&A for the periods presented (in thousands):

	Q1 2025			Q4 2024			Q1 2024
Core G&A Reconciliation
Total expense	$	3,252,754		$	3,171,070		$	2,458,401
Advisory and commission		(2,353,925	)		(2,250,427	)		(1,733,487	)
Depreciation and amortization		(92,356	)		(92,032	)		(67,158	)
Interest expense on borrowings₍₁₅₎		(85,862	)		(81,979	)		(60,082	)
Brokerage, clearing and exchange		(44,138	)		(34,789	)		(30,532	)
Amortization of other intangibles		(43,521	)		(42,614	)		(29,552	)
Employee deferred compensation		709			502			(2,140	)
Loss on extinguishment of debt		—			(3,983	)		(—	)
Total G&A		633,661			665,748			535,450
Promotional (ongoing)₍₁₂₎₍₁₃₎		(151,932	)		(173,191	)		(132,311	)
Acquisition costs excluding interest₍₁₃₎		(43,407	)		(37,261	)		(9,524	)
Employee share-based compensation		(18,366	)		(26,067	)		(22,633	)
Regulatory charges		(6,887	)		(7,335	)		(7,469	)
Core G&A	$	413,069		$	421,894		$	363,513

(12)	Promotional (ongoing) includes $14.8 million, $13.4 million and $8.0 million for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively, of support costs related to full-time employees that are classified within Compensation and benefits expense in the condensed consolidated statements of income and excludes costs that have been incurred as part of acquisitions that have been classified within acquisition costs.
(13)	Acquisition costs include the costs to setup, onboard and integrate acquired entities and other costs that were incurred as a result of the acquisitions. The below table summarizes the primary components of acquisition costs for the periods presented (in thousands):

	Q1 2025		Q4 2024		Q1 2024
Acquisition costs
Fair value mark on contingent consideration₍₃₅₎	$	6,594	$	11,249	$	—
Compensation and benefits		17,417		15,950		3,850
Professional services		6,145		7,357		3,246
Promotional₍₁₂₎		8,538		2,235		2,268
Interest₍₁₅₎		5,137		—		—
Other		4,713		470		160
Acquisition costs	$	48,544	$	37,261	$	9,524

(14)	EBITDA and adjusted EBITDA are non-GAAP financial measures. Please see a description of EBITDA and adjusted EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income to EBITDA and adjusted EBITDA for the periods presented (in thousands):

	Q1 2025		Q4 2024			Q1 2024
EBITDA and adjusted EBITDA Reconciliation
Net income	$	318,573	$	270,749		$	288,764
Interest expense on borrowings₍₁₅₎		85,862		81,979			60,082
Provision for income taxes		98,680		70,532			85,428
Depreciation and amortization		92,356		92,032			67,158
Amortization of other intangibles		43,521		42,614			29,552
EBITDA	$	638,992	$	557,906		$	530,984
Acquisition costs excluding interest₍₁₃₎		43,407		37,261			9,524
Departure of former Chief Executive Officer_(a)		—		(14,367	)		—
Loss on extinguishment of debt		—		3,983			—
Adjusted EBITDA	$	682,399	$	584,783		$	540,508

	(a)	The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.

(15)	Below is a reconciliation of interest expense on borrowings per Management’s Statements of Operations to interest expense on borrowings on the Company’s condensed consolidated statements of income for the periods presented (in thousands):

	Q1 2025		Q4 2024		Q1 2024
Interest expense on borrowings on Management’s Statement of Operations	$	80,725	$	81,979	$	60,082
Cost of debt issuance related to Commonwealth acquisition₍₁₃₎		5,137		—		—
Interest expense on borrowings on Condensed Consolidated Statements of Income	$	85,862	$	81,979	$	60,082

(16)	Adjusted pre-tax income is a non-GAAP financial measure. Please see a description of adjusted pre-tax income under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of income before provision for income taxes to adjusted pre-tax income for the periods presented (in thousands):

	Q1 2025		Q4 2024			Q1 2024
Income before provision for income taxes	$	417,253	$	341,281		$	374,192
Amortization of other intangibles		43,521		42,614			29,552
Acquisition costs₍₁₃₎		48,544		37,261			9,524
Departure of former Chief Executive Officer_(a)		—		(14,367	)		—
Loss on extinguishment of debt		—		3,983			—
Adjusted pre-tax income	$	509,318	$	410,772		$	413,268

	(a)	The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.

(17)

Adjusted net income and adjusted EPS are non-GAAP financial measures. Please see a description of adjusted net income and adjusted EPS under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the periods presented (in thousands, except per share data):

	Q1 2025						Q4 2024						Q1 2024
	Amount			Per Share			Amount			Per Share			Amount			Per Share
Net income / earnings per diluted share	$	318,573		$	4.24		$	270,749		$	3.59		$	288,764		$	3.83
Amortization of other intangibles		43,521			0.58			42,614			0.57			29,552			0.39
Acquisition costs₍₁₃₎		48,544			0.65			37,261			0.49			9,524			0.13
Departure of former Chief Executive Officer_(a)		—			—			(14,367	)		(0.19	)		—			—
Loss on extinguishment of debt		—			—			3,983			0.05			—			—
Tax benefit		(23,937	)		(0.32	)		(19,978	)		(0.27	)		(10,340	)		(0.14	)
Adjusted net income / adjusted EPS	$	386,701		$	5.15		$	320,262		$	4.25		$	317,500		$	4.21
Diluted share count		75,112						75,337						75,463
Note: Totals may not foot due to rounding.

	(a)	The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.

(18)	Consists of total advisory and brokerage assets under custody at the Company’s primary broker-dealer subsidiary, LPL Financial, as well as assets under custody of a third-party custodian related to Atria’s seven introducing broker-dealer subsidiaries.
(19)	Assets on the Company’s corporate advisory platform are serviced by investment advisor representatives of LPL Financial. Assets on the Company’s independent RIA advisory platform are serviced by investment advisor representatives of separate registered investment advisor firms rather than representatives of LPL Financial.
(20)	Consists of advisory assets in LPL Financial’s Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios and Guided Wealth Portfolios platforms.
(21)	Consists of total client deposits into advisory or brokerage accounts less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. The Company considers conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively.
(22)	Consists of existing custodied assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage.
(23)	Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total advisory and brokerage assets.
(24)	Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial.
(25)	Client cash balances include CCA and exclude purchased money market funds. CCA balances include cash that clients have deposited with LPL Financial that is included in Client payables in the condensed consolidated balance sheets. The following table presents purchased money market funds for the periods presented (in billions):

		Q1 2025		Q4 2024		Q1 2024
	Purchased money market funds	$	44.7	$	41.0	$	32.6

(26)	Calculated by dividing revenue for the period by the average balance during the period.
(27)	EBITDA and Credit Agreement EBITDA are non-GAAP financial measures. Please see a description of EBITDA and Credit Agreement EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Under the Credit Agreement, management calculates Credit Agreement EBITDA for a trailing twelve month period at the end of each fiscal quarter and in doing so may make further adjustments to prior quarters. Below are reconciliations of trailing twelve month net income to trailing twelve month EBITDA and Credit Agreement EBITDA for the periods presented (in thousands):

	Q1 2025		Q4 2024
EBITDA and Credit Agreement EBITDA Reconciliations
Net income	$	1,088,425	$	1,058,616
Interest expense on borrowings		299,961		274,181
Provision for income taxes		347,528		334,276
Depreciation and amortization		333,725		308,527
Amortization of other intangibles		149,203		135,234
EBITDA	$	2,218,842	$	2,110,834
Credit Agreement Adjustments:
Acquisition costs and other₍₁₃₎₍₃₆₎	$	249,870	$	223,614
Employee share-based compensation		84,690		88,957
M&A accretion₍₃₇₎		237,160		235,048
Advisor share-based compensation		2,740		2,597
Loss on extinguishment of debt		3,983		3,983
Credit Agreement EBITDA	$	2,797,285	$	2,665,033

(28)	Calculated based on the average advisor count from the current period and prior periods.
(29)	Calculated based on the end of period total advisory and brokerage assets divided by end of period advisor count.
(30)	Represents amortization expense on forgivable loans for transition assistance to advisors and institutions.
(31)	During the first quarter of 2025, the Company updated its reporting of employees to include all full-time employees, including those reflected in Core G&A, promotional (ongoing) and advisory and commission expense. Prior period disclosures have been updated to reflect this change as applicable.
(32)	Reflects retention of total advisory and brokerage assets, calculated by deducting quarterly annualized attrition from total advisory and brokerage assets, divided by the prior quarter total advisory and brokerage assets.
(33)	Capital expenditures represent cash payments for property and equipment during the period.
(34)	Acquisitions, net represent cash paid for acquisitions, net of cash acquired during the period. Acquisitions, net for the three months ended March 31, 2025 excludes $70.2 million related to The Investment Center, which was prefunded on October 1, 2024 in conjunction with the close of the Atria acquisition, as well as cash inflows associated with working capital and other post-closing adjustments.
(35)	Represents a fair value adjustment to our contingent consideration liabilities that is reflected in other expense in the condensed consolidated statements of income.
(36)	Acquisition costs and other primarily include acquisition costs related to Atria, costs incurred related to the integration of the strategic relationship with Prudential, a $26.4 million reduction related to the departure of the Company’s former Chief Executive Officer and related clawback of share-based compensation awards, and an $18.0 million regulatory charge recognized during the three months ended September 30, 2024 reflecting the amount of a penalty proposed by the SEC as part of its civil investigation of the Company’s compliance with certain elements of the Company’s AML compliance program.
(37)	M&A accretion is an adjustment to reflect the annualized expected run rate EBITDA of an acquisition as permitted by the Credit Agreement for up to eight fiscal quarters following the close of such acquisition.

The MIL Network –

May 9, 2025

MIL-OSI: CarGurus Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

Marketplace revenue grew 13% YoY

Q1’25 Net Income of $39.0 million; Non-GAAP Adjusted EBITDA of $66.3 million, up 32% YoY

Repurchased $184.2 million worth of shares in Q1’25, representing 6% of our outstanding capital

BOSTON, May 08, 2025 (GLOBE NEWSWIRE) — CarGurus, Inc. (Nasdaq: CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles*, today announced financial results for the first quarter ended March 31, 2025.

“Our strong momentum in our Marketplace business continued into 2025, which grew 13% year-over-year,” said Jason Trevisan, Chief Executive Officer at CarGurus. “Across the company, we advanced our 2025 core drivers of value creation: expanding data-driven solutions that help dealers drive more profitable businesses, meeting the evolving needs of car shoppers with a more intelligent and seamless experience, and enabling customers to do more of the transaction online. As a result, this focused execution has translated into deeper consumer and dealer engagement and has expanded our market share.”

First Quarter Financial Highlights

	Three Months Ended
	March 31, 2025
	Results (in millions)			Variance from Prior Year
Revenue
Marketplace Revenue	$	212.2			13	%
Wholesale Revenue		7.7			(52	)%
Product Revenue		5.2			(58	)%
Total Revenue	$	225.2			4	%

Gross Profit	$	199.7			14	%
% Margin		89	%	762 bps

Operating Expenses	$	154.0			4	%

GAAP Net Income	$	39.0			83	%
% Margin		17	%	747 bps

Non-GAAP Adjusted EBITDA ⁽¹⁾	$	66.3			32	%
% Margin ⁽¹⁾		29	%	609 bps

Cash and Cash Equivalents at period end ⁽²⁾	$	172.9			(43	)%

^{(1) For more information regarding our use of non-GAAP Adjusted EBITDA and other non-GAAP financial measures, please see the reconciliations of GAAP financial measures to non-GAAP financial measures and the section titled “Non-GAAP Financial Measures and Other Business Metrics” below.}
^{(2) Variance represents the change from December 31, 2024.}

	Three Months Ended
	March 31, 2025
	Results			Variance from Prior Year
Key Performance Indicators ⁽¹⁾
U.S. Paying Dealers ⁽²⁾		25,153			3	%
International Paying Dealers ⁽²⁾		7,219			7	%
Total Paying Dealers ⁽²⁾		32,372			4	%

U.S. QARSD ⁽²⁾	$	7,369			10	%
International QARSD ⁽²⁾	$	2,073			10	%
Consolidated QARSD ⁽²⁾	$	6,173			9	%

Transactions		5,209			(49	)%

U.S. Average Monthly Unique Users (in millions) ⁽³⁾		35.0		N/A⁽⁴⁾
U.S. Average Monthly Sessions (in millions) ⁽³⁾		85.7		N/A⁽⁴⁾

International Average Monthly Unique Users (in millions) ⁽³⁾		10.6		N/A⁽⁴⁾
International Average Monthly Sessions (in millions) ⁽³⁾		22.2		N/A⁽⁴⁾

Segment Reporting *(in millions)*
U.S. Marketplace Segment Revenue	$	195.2			13	%
U.S. Marketplace Segment Operating Income	$	49.8			45	%
Digital Wholesale Segment Revenue	$	12.9			(55	)%
Digital Wholesale Segment Operating Loss	$	(5.8	)		44	%

^{(1) For more information regarding our use of Key Performance Indicators, please see the section titled “Non-GAAP Financial Measures and Other Business Metrics” below.}
^{(2) Metrics presented as of March 31, 2025.}
^{(3) CarOffer website is excluded from the metrics presented for users and sessions.}
^{(4) As a result of the change from Google Universal Analytics (“Google Analytics”) to Google Analytics 4 (“GA4”) on July 1, 2024, we are unable to provide comparable monthly unique users or monthly sessions information for this period. For more information regarding the change in methodology for monthly unique users or monthly sessions, please see the section titled “Non-GAAP Financial Measures and Other Business Metrics” below.}

Second Quarter 2025 Guidance

The table below provides CarGurus’ guidance, which is based on recent market trends, industry conditions, and management’s expectations and assumptions as of today.

Second Quarter 2025 Guidance Metrics	Values
Total Revenue	$222.0 million to $242.0 million
Marketplace Revenue	$219.5 million to $224.5 million
Non-GAAP Adjusted EBITDA	$71.5 million to $79.5 million
Non-GAAP Earnings per Share	$0.52 to $0.58

The second quarter 2025 non-GAAP earnings per share calculation assumes 100.0 million diluted weighted-average common shares outstanding.

The assumptions that are built into guidance for the second quarter 2025 regarding our pace of paid dealer acquisition, churn, and expansion activity for the relevant period are based on recent market trends and industry conditions. Guidance for the second quarter 2025 excludes macro-level industry issues that result in dealers and consumers materially changing their recent market trends or that cause us to enact measures to assist dealers. Guidance also excludes any potential impact of future foreign currency exchange gains or losses. CarGurus may incur charges, realize gains or losses, or experience other events or circumstances in 2025 that could cause any of these assumptions to change and/or actual results to vary from this guidance.

CarGurus has not reconciled its guidance of non-GAAP adjusted EBITDA to GAAP net income or non-GAAP earnings per share to GAAP earnings per share because reconciling items between such GAAP and non-GAAP financial measures, which include, as applicable, stock-based compensation, amortization of intangible assets, depreciation expenses, non-intangible amortization, transaction-related expenses, other income, net, the provision for income taxes, and income tax effects, cannot be reasonably predicted due to, as applicable, the timing, amount, valuation, and number of future employee equity awards and the uncertainty relating to the timing, frequency, and effect of acquisitions and the significance of the resulting transaction-related expenses, and therefore cannot be determined without unreasonable effort.

Conference Call and Webcast Information

CarGurus will host a conference call and live webcast to discuss its first quarter 2025 financial results and business outlook at 5:00 p.m. Eastern Time today, May 8, 2025. To access the conference call, dial (877) 451-6152 for callers in the U.S. or Canada, or (201) 389-0879 for international callers. The webcast will be available live on the Investors section of CarGurus’ website at https://investors.cargurus.com.

An audio replay of the call will also be available to investors beginning at approximately 8:00 p.m. Eastern Time today, May 8, 2025, until 11:59 p.m. Eastern Time on May 22, 2025, by dialing (844) 512-2921 for callers in the U.S. or Canada, or (412) 317-6671 for international callers, and entering passcode 13752230. In addition, an archived webcast will be available on the Investors section of CarGurus’ website at https://investors.cargurus.com.

About CarGurus

CarGurus (Nasdaq: CARG) is a multinational, online automotive platform for buying and selling vehicles that is building upon its industry-leading listings marketplace with both digital retail solutions and the CarOffer online wholesale platform. The CarGurus platform gives consumers the confidence to purchase and/or sell a vehicle either online or in person, and it gives dealerships the power to accurately price, effectively market, instantly acquire, and quickly sell vehicles, all with a nationwide reach. The Company uses proprietary technology, search algorithms, and data analytics to bring trust, transparency, and competitive pricing to the automotive shopping experience. CarGurus is the most visited automotive shopping site in the U.S.*

In addition to the U.S. marketplace, the Company operates online marketplaces under the CarGurus brand in Canada and the U.K., as well as independent online marketplace brands Autolist in the U.S. and PistonHeads in the U.K.

To learn more about CarGurus, visit www.cargurus.com, and for more information about CarOffer, visit www.caroffer.com.

*Source: Similarweb, Traffic Report (Cars.com, Autotrader, TrueCar, CARFAX Listings
(defined as CARFAX Total visits minus Vehicle History Reports traffic)), Q1 2025, U.S.

CarGurus® and Autolist® are each a registered trademark of CarGurus, Inc., and CarOffer® is a registered trademark of CarOffer, LLC. PistonHeads® is a registered trademark of CarGurus Ireland Limited in the U.K. and the European Union. All other product names, trademarks, and registered trademarks are property of their respective owners.

Cautionary Language Concerning Forward-Looking Statements

This press release includes forward-looking statements. Other than statements of historical facts, all statements contained in this press release, including statements regarding our future financial and operating results; our second quarter 2025 financial and business performance, including guidance; our business and growth strategy and our plans to execute on our growth strategy; our ability to grow our business profitably and efficiently; our capital allocation and investment strategy; the attractiveness and value proposition of our current offerings and other product opportunities; our ability to maintain existing and acquire new customers; addressable opportunities; our expectation that we will continue to invest in growth initiatives; our ability to quickly make transformations necessary for our business to achieve long-term goals; and our ability to overcome challenges facing the automotive industry ecosystem, including inventory supply problems, global supply chain challenges, including disruptions to pre-existing supply chains and vendor relations, changes to trade policies or tariff regulations, financial market volatility and disruption, increased interest rates, inflationary concerns, and other macroeconomic issues, including uncertain or volatile economic conditions in the U.S. and abroad, are forward-looking statements. The words “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “goal,” “guide,” “guidance,” “intend,” “may,” “might,” “plan,” “potential,” “predicts,” “projects,” “seeks,” “should,” “strive,” “target,” “will,” “would,” and similar expressions and their negatives are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. You should not rely upon forward-looking statements as predictions of future events.

These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those reflected in such statements, including risks related to our growth and our ability to grow our revenue; our relationships with dealers; competition in the markets in which we operate; market growth; our ability to innovate; our ability to realize benefits from our acquisitions and successfully implement the integration strategies in connection therewith; impairment of the carrying value of our goodwill, intangible assets, right-of-use assets, or other assets; increased inflation and interest rates, global supply chain challenges, changes in international trade policies, including tariffs, volatile economic conditions, and other macroeconomic issues; changes in our key personnel; natural disasters, epidemics, or pandemics; and our ability to operate in compliance with applicable laws as well as other risks and uncertainties as may be detailed from time to time in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q and other reports we file with the U.S. Securities and Exchange Commission. Moreover, we operate in very competitive and rapidly changing environments. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, we cannot guarantee that future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. We are under no duty to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations, except as required by law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

Investor Contact:
Kirndeep Singh
Vice President, Head of Investor Relations
investors@cargurus.com

Media Contact:
Maggie Meluzio
Director, Public Relations and External Communications
pr@cargurus.com

Unaudited Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)

	As of March 31, 2025			As of December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	172,862		$	304,193
Accounts receivable, net of allowance for doubtful accounts of $808 and $788, respectively		40,703			44,248
Inventory		810			338
Prepaid expenses, prepaid income taxes, and other current assets		21,107			27,868
Deferred contract costs		13,640			12,523
Restricted cash		2,848			2,036
Total current assets		251,970			391,206
Property and equipment, net		132,383			130,010
Intangible assets, net		11,318			11,767
Goodwill		46,714			46,167
Operating lease right-of-use assets		119,589			121,484
Deferred tax assets		110,050			106,672
Deferred contract costs, net of current portion		13,088			13,196
Other non-current assets		4,003			4,034
Total assets	$	689,115		$	824,536
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	29,891		$	26,410
Accrued expenses, accrued income taxes, and other current liabilities		32,240			35,975
Deferred revenue		22,407			21,661
Operating lease liabilities		9,969			9,005
Total current liabilities		94,507			93,051
Operating lease liabilities		185,463			183,739
Deferred tax liabilities		15			26
Other non–current liabilities		7,080			6,031
Total liabilities		287,065			282,847
Stockholders’ equity:
Preferred stock, $0.001 par value per share; 10,000,000 shares authorized; no shares issued and outstanding		—			—
Class A common stock, $0.001 par value per share; 500,000,000 shares authorized; 84,334,642 and 89,002,571 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		84			89
Class B common stock, $0.001 par value per share; 100,000,000 shares authorized; 14,216,250 and 14,986,745 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		14			15
Additional paid-in capital		6,775			169,013
Retained earnings		396,486			375,119
Accumulated other comprehensive loss		(1,309	)		(2,547	)
Total stockholders’ equity		402,050			541,689
Total liabilities and stockholders’ equity	$	689,115		$	824,536

Unaudited Condensed Consolidated Income Statements
(in thousands, except share and per share data)

	Three Months Ended
	March 31,
	2025			2024
Revenue
Marketplace	$	212,235		$	187,219
Wholesale		7,747			16,125
Product		5,176			12,452
Total revenue		225,158			215,796
Cost of revenue ⁽¹⁾
Marketplace		14,248			14,385
Wholesale		6,170			14,224
Product		5,033			12,226
Total cost of revenue		25,451			40,835
Gross profit		199,707			174,961
Operating expenses
Sales and marketing		86,716			82,274
Product, technology, and development		36,250			35,545
General and administrative		26,780			28,066
Depreciation and amortization		4,206			2,792
Total operating expenses		153,952			148,677
Income from operations		45,755			26,284
Other income, net
Interest income		3,098			3,906
Other expense, net		(302	)		(505	)
Total other income, net		2,796			3,401
Income before income taxes		48,551			29,685
Provision for income taxes		9,506			8,384
Net income		39,045			21,301
Net income per share attributable to common stockholders:
Basic	$	0.38		$	0.20
Diluted	$	0.37		$	0.20
Weighted-average number of shares of common stock used in computing net income per share attributable to common stockholders:
Basic		103,094,690			107,174,812
Diluted		105,068,046			108,632,159

^{(1) Includes depreciation and amortization expense for the three months ended March 31, 2025 and 2024 of $2,348 and $4,689, respectively.}

Unaudited Segment Revenue
(in thousands)

	Three Months Ended
	March 31,
	2025		2024
Segment Revenue:
U.S. Marketplace	$	195,228	$	172,988
Digital Wholesale		12,923		28,577
Other		17,007		14,231
Total	$	225,158	$	215,796

Unaudited Segment Income (Loss) from Operations
(in thousands)

	Three Months Ended
	March 31,
	2025			2024
Segment Income (Loss) from Operations:
U.S. Marketplace	$	49,781		$	34,217
Digital Wholesale		(5,779	)		(10,340	)
Other		1,753			2,407
Total	$	45,755		$	26,284

Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)

	Three Months Ended
	March 31,
	2025			2024
Operating Activities
Net income	$	39,045		$	21,301
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		6,554			7,481
Currency (gain) loss on foreign denominated transactions		(165	)		384
Deferred taxes		(3,389	)		(9,052	)
Provision for doubtful accounts		424			290
Stock-based compensation expense		12,900			15,822
Amortization of deferred financing costs		129			129
Amortization of deferred contract costs		3,810			3,258
Changes in operating assets and liabilities:
Accounts receivable		3,070			(4,182	)
Inventory		(353	)		(319	)
Prepaid expenses, prepaid income taxes, and other assets		6,801			5,974
Deferred contract costs		(4,744	)		(3,326	)
Accounts payable		4,075			707
Accrued expenses, accrued income taxes, and other liabilities		(5,592	)		681
Deferred revenue		731			120
Lease obligations		4,583			12,696
Net cash provided by operating activities		67,879			51,964
Investing Activities
Purchases of property and equipment		(2,240	)		(28,665	)
Capitalization of website development costs		(5,391	)		(5,465	)
Purchases of short-term investments		—			(494	)
Sale of short-term investments		—			21,218
Advance payments to customers, net of collections		—			259
Net cash used in investing activities		(7,631	)		(13,147	)
Financing Activities
Proceeds from issuance of common stock upon exercise of stock options		394			11
Payment of withholding taxes on net share settlements of restricted stock units		(8,985	)		(5,115	)
Repurchases of common stock		(182,828	)		(77,442	)
Payment of finance lease obligations		(20	)		(18	)
Change in gross advance payments received from third-party transaction processor		(38	)		(474	)
Net cash used in financing activities		(191,477	)		(83,038	)
Impact of foreign currency on cash, cash equivalents, and restricted cash		710			(577	)
Net decrease in cash, cash equivalents, and restricted cash		(130,519	)		(44,798	)
Cash, cash equivalents, and restricted cash at beginning of period		306,229			293,926
Cash, cash equivalents, and restricted cash at end of period	$	175,710		$	249,128

Unaudited Reconciliation of GAAP Net Income to Non-GAAP Net Income and Non-GAAP Net Income Attributable to Common Stockholders and GAAP Net Income Per Share Attributable to Common Stockholders to Non-GAAP Net Income Per Share Attributable to Common Stockholders:
(in thousands, except per share data)

	Three Months Ended
	March 31,
	2025			2024⁽¹⁾
GAAP net income	$	39,045		$	21,301
Stock-based compensation expense		12,900			15,822
Amortization of intangible assets		505			1,882
Transaction-related expenses		1,087			811
Income tax effects and adjustments		(5,174	)		(3,422	)
Non-GAAP net income	$	48,363		$	36,394
GAAP net income per share attributable to common stockholders:
Basic	$	0.38		$	0.20
Diluted	$	0.37		$	0.20
Non-GAAP net income per share attributable to common stockholders:
Basic	$	0.47		$	0.34
Diluted	$	0.46		$	0.34
Shares used in GAAP and Non-GAAP per share calculations
Basic		103,095			107,175
Diluted		105,068			108,632

^{(1) During the three months ended March 31, 2025, we identified an immaterial error to our non-GAAP net income calculation related to the income tax effects and adjustments and have updated the table to correct the calculation for the three months ended March 31, 2024. This resulted in an increase in the non-GAAP net income per share attributable to common stockholders from $0.32 per share to $0.34 per share.}

Unaudited Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA and GAAP Net Income Margin to Non-GAAP Adjusted EBITDA Margin
(in thousands)

	Three Months Ended
	March 31,
	2025			2024
GAAP net income	$	39,045		$	21,301
Depreciation and amortization		6,554			7,481
Stock-based compensation expense		12,900			15,822
Transaction-related expenses		1,087			811
Other income, net		(2,796	)		(3,401	)
Provision for income taxes		9,506			8,384
Non-GAAP adjusted EBITDA	$	66,296		$	50,398

GAAP net income margin		17	%		10	%
Non-GAAP adjusted EBITDA margin		29	%		23	%

Unaudited Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit and GAAP Gross Profit Margin to Non-GAAP Gross Profit Margin
(in thousands, except percentages)

	Three Months Ended
	March 31,
	2025			2024
Revenue	$	225,158		$	215,796
Cost of revenue		25,451			40,835
GAAP gross profit		199,707			174,961
Stock-based compensation expense included in Cost of revenue		60			231
Amortization of intangible assets included in Cost of revenue		—			875
Transaction-related expenses included in Cost of revenue		269			92
Non-GAAP gross profit	$	200,036		$	176,159

GAAP gross profit margin		89	%		81	%
Non-GAAP gross profit margin		89	%		82	%

Unaudited Reconciliation of GAAP Expense to Non-GAAP Expense
(in thousands)

	Three Months Ended March 31, 2025
	GAAP expense		Stock-based compensation expense			Amortization of intangible assets			Transaction-related expenses			Non-GAAP expense
Cost of revenue	$	25,451	$	(60	)	$	—		$	(269	)	$	25,122
Sales and marketing		86,716		(2,833	)		—			(491	)		83,392
Product, technology, and development		36,250		(5,565	)		—			(151	)		30,534
General and administrative		26,780		(4,442	)		—			(176	)		22,162
Depreciation & amortization		4,206		—			(505	)		—			3,701
Operating expenses⁽¹⁾	$	153,952	$	(12,840	)	$	(505	)	$	(818	)	$	139,789
Total cost of revenue and operating expenses	$	179,403	$	(12,900	)	$	(505	)	$	(1,087	)	$	164,911

	Three Months Ended March 31, 2024
	GAAP expense		Stock-based compensation expense			Amortization of intangible assets			Transaction-related expenses			Non-GAAP expense
Cost of revenue	$	40,835	$	(231	)	$	(875	)	$	(92	)	$	39,637
Sales and marketing		82,274		(2,874	)		—			(394	)		79,006
Product, technology, and development		35,545		(5,977	)		—			(1	)		29,567
General and administrative		28,066		(6,740	)		—			(324	)		21,002
Depreciation & amortization		2,792		—			(1,007	)		—			1,785
Operating expenses⁽¹⁾	$	148,677	$	(15,591	)	$	(1,007	)	$	(719	)	$	131,360
Total cost of revenue and operating expenses	$	189,512	$	(15,822	)	$	(1,882	)	$	(811	)	$	170,997

^{(1) Operating expenses include sales and marketing, product, technology, and development, general and administrative, and depreciation & amortization.}

Unaudited Reconciliation of GAAP Net Cash and Cash Equivalents Provided by Operating Activities to Non-GAAP Free Cash Flow
(in thousands)

	Three Months Ended
	March 31,
	2025			2024
GAAP net cash and cash equivalents provided by operating activities	$	67,879		$	51,964
Purchases of property and equipment		(2,240	)		(28,665	)
Capitalization of website development costs		(5,391	)		(5,465	)
Non-GAAP free cash flow	$	60,248		$	17,834

Non-GAAP Financial Measures and Other Business Metrics

To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”), we provide investors with certain non-GAAP financial measures and other business metrics, which we believe are helpful to our investors. We use these non-GAAP financial measures and other business metrics for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures and other business metrics provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.

The presentation of non-GAAP financial information and other business metrics is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. While our non-GAAP financial measures and other business metrics are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included above, and not to rely on any single financial measure to evaluate our business.

While a reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to, as applicable, the timing, amount, valuation, and number of future employee equity awards and the uncertainty relating to the timing, frequency, and effect of acquisitions and the significance of the resulting transaction-related expenses, we have provided a reconciliation of non-GAAP financial measures and other business metrics to the nearest comparable GAAP measures in the accompanying financial statement tables included in this press release.

We monitor operating measures of certain non-GAAP items including non-GAAP gross profit, non-GAAP gross margin, non-GAAP expense, non-GAAP net income, non-GAAP net income attributable to common stockholders, and non-GAAP net income per share attributable to common stockholders. These non-GAAP financial measures exclude the effect of stock-based compensation expense, amortization of intangible assets, and transaction related-expenses. Non-GAAP net income, non-GAAP net income attributable to common stockholders, and non-GAAP net income per share attributable to common stockholders also exclude certain income tax effects and adjustments. Our calculations of non-GAAP net income per share attributable to common stockholders utilize applicable GAAP share counts as included in the accompanying financial statement tables included in this press release. In addition, we evaluate our non-GAAP gross profit in relation to our revenue. We refer to this as non-GAAP gross profit margin and define it as non-GAAP gross profit divided by total revenue. We believe that these non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.

We define Adjusted EBITDA as net income, adjusted to exclude: depreciation and amortization, stock-based compensation expense, transaction-related expenses, other income, net, and provision for income taxes.

In addition, we evaluate our Non-GAAP Adjusted EBITDA in relation to our revenue. We refer to this as Non-GAAP Adjusted EBITDA margin and define it as Non-GAAP Adjusted EBITDA divided by total revenue.

We have presented Adjusted EBITDA and Adjusted EBITDA margin because they are key measures used by our management and Board of Directors to understand and evaluate our operating performance, generate future operating plans, and make strategic decisions regarding the allocation of capital. We believe Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by our management in its financial and operational decision making.

We define Free Cash Flow as cash flow from operations adjusted to include: purchases of property and equipment and capitalization of website development costs. We have presented Free Cash Flow because it is a measure of our financial performance that represents the cash that we are able to generate after expenditures required to maintain or expand our asset base.

We define a paying dealer as a dealer account with an active, paid marketplace subscription at the end of a defined period. The number of paying dealers we have is important to us and we believe it provides valuable information to investors because it is indicative of the value proposition of our marketplace products, as well as our sales and marketing success and opportunity, including our ability to retain paying dealers and develop new dealer relationships.

We define Quarterly Average Revenue per Subscribing Dealer (“QARSD”), which is measured at the end of a fiscal quarter, as the marketplace revenue primarily from subscriptions to our Listings packages and Real-time Performance Marketing, our digital advertising suite, and other digital add-on products during that trailing quarter divided by the average number of paying dealers in that marketplace during the quarter. We calculate the average number of paying dealers for a period by adding the number of paying dealers at the end of such period and the end of the prior period and dividing by two. This information is important to us, and we believe it provides useful information to investors, because we believe that our ability to grow QARSD is an indicator of the value proposition of our products and the return on investment that our paying dealers realize from our products. In addition, increases in QARSD, which we believe reflect the value of exposure to our engaged audience in relation to subscription cost, are driven in part by our ability to grow the volume of connections to our users and the quality of those connections, which result in increased opportunity to upsell package levels and cross-sell additional products to our paying dealers.

We define Transactions within the Digital Wholesale segment as the number of vehicles processed from car dealers, consumers, and other marketplaces through the CarOffer website within the defined period. Transactions consists of each unique vehicle (based on vehicle identification number) that reaches “sold and invoiced” status on the CarOffer website within the defined period, including vehicles sold to car dealers, vehicles sold at third-party auctions, vehicles ultimately sold to a different buyer, and vehicles that are returned to their owners without completion of a sale transaction. We exclude vehicles processed within CarOffer’s intra-group trading solution (Group Trade) from the definition of Transactions, and we only count any unique vehicle once even if it reaches sold status multiple times. The Digital Wholesale segment includes the purchase and sale of vehicles between dealers, or Dealer-to-Dealer transactions, and Sell My Car – Instant Max Cash Offer transactions. We view Transactions as a key business metric, and we believe it provides useful information to investors, because it provides insight into growth and revenue for the Digital Wholesale segment. Transactions drive a significant portion of Digital Wholesale segment revenue. We believe growth in Transactions demonstrates consumer and dealer utilization and our market share penetration in the Digital Wholesale segment.

Historically, we have used data from Google Analytics to measure two of our key business metrics: monthly unique users and monthly sessions. Effective July 1, 2024, GA4 replaced Google Analytics. The methodologies used in GA4 are different and not comparable to the methodologies used in Google Analytics. As discussed below, we also make certain adjustments to the GA4 data in order to improve the accuracy of the reported monthly unique users and monthly sessions. Due to the change in methodology, we are unable to provide comparable monthly unique user and monthly session information for prior periods, including any periods prior to June 30, 2024.

For each of our websites (excluding the CarOffer website), we define a monthly unique user as an individual who has visited any such website and taken a Visitor Action (as defined below) within a calendar month, based on data as measured by GA4. We calculate average monthly unique users as the sum of the monthly unique users of each of our websites in a defined period, divided by the number of months in that period. Effective July 1, 2024, we count a unique user the first time a computer or mobile device with a unique device identifier accesses any of our websites or application during a calendar month and takes an action on such website or in such application, such as performing a search, visiting vehicle detail pages, and connecting with a dealer (“Visitor Action”). If an individual accesses a website or application using a different device within a given month, the first Visitor Action taken by each such device is counted as a separate unique user. If an individual uses multiple browsers on a single device and/or clears their cookies and returns to our website or application and takes a Visitor Action within a calendar month, each such Visitor Action is counted as a separate unique user. We eliminate any duplicate unique users that may arise when users visit a webview within our native application. We view our average monthly unique users as a key indicator of the quality of our user experience, the effectiveness of our advertising and traffic acquisition, and the strength of our brand awareness. Measuring unique users is important to us and we believe it provides useful information to our investors because our marketplace revenue depends, in part, on our ability to provide dealers with connections to our users and exposure to our marketplace audience. We define connections as interactions between consumers and dealers on our marketplace through phone calls, email, managed text and chat, and clicks to access the dealer’s website or map directions to the dealership.

We define monthly sessions as the number of distinct visits to our websites (excluding the CarOffer website) that include a Visitor Action that take place each month within a given time frame, as measured and defined by GA4. We calculate average monthly sessions as the sum of the monthly sessions in a defined period, divided by the number of months in that period. Effective July 1, 2024, a session is defined as beginning with the first Visitor Action from a computer or mobile device and ending at the earliest of when a user closes their browser window or after 30 minutes of inactivity. We eliminate any duplicate monthly sessions that may arise when users visit a webview within our native application. We believe that measuring the volume of sessions in a time period, when considered in conjunction with the number of unique users in that time period, is an important indicator to us of consumer satisfaction and engagement with our marketplace, and we believe it provides useful information to our investors because the more satisfied and engaged consumers we have, the more valuable our service is to dealers.

The MIL Network –

May 9, 2025

MIL-OSI: Magnite to Participate in Upcoming Financial Conferences
Source: GlobeNewswire (MIL-OSI)

NEW YORK, May 08, 2025 (GLOBE NEWSWIRE) — Magnite (Nasdaq: MGNI), the largest independent sell-side advertising company, today announced that members of its executive team will participate and host in-person investor meetings at the following financial conferences:
- 20th Annual Needham Technology, Media and Consumer Conference in New York City on Tuesday, May 13 – company management will participate in a fireside chat at 10:15 a.m. ET.
- B. Riley Securities 25th Annual Investor Conference in Marina del Rey on Wednesday, May 21, and Thursday, May 22.
- Craig-Hallum 22nd Annual Institutional Investor Conference in Minneapolis on Wednesday, May 28.
- Evercore ISI 4th Annual Nothing But Net Internet Investors Summit in New York City on Wednesday, May 28.
- Bank of America Global Technology Conference in San Francisco on Tuesday, June 3 – company management will participate in a fireside chat at 2:40 p.m. PT.
- Wolfe Research Small and Mid-Cap Conference in New York City on Thursday, June 5.
- Rosenblatt 5th Annual Technology Summit – company management will participate in a virtual fireside chat on Tuesday, June 10 at 9:00 a.m. ET
Live webcasts of the Needham and Bank of America fireside chats will be available in the “Events & Presentations” section of Magnite’s investor relations website at: https://investor.magnite.com. The webcast replays will be available following the conclusion of the live presentations for 90 days.

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.

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

The MIL Network –
May 9, 2025

MIL-OSI: Sprout Social Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

CHICAGO, May 08, 2025 (GLOBE NEWSWIRE) — Sprout Social, Inc. (“Sprout Social”, the “Company”) (Nasdaq: SPT), an industry-leading provider of cloud-based social media management software, today announced financial results for its first quarter ended March 31, 2025.

“Our team delivered strong results in the first quarter, highlighted by 13% revenue growth, a 21% increase in cRPO, and profitability expansion,” said Ryan Barretto, CEO of Sprout Social. “We remain focused on winning in the enterprise, deepening customer adoption, scaling through partnerships, and driving expansion within accounts. With the rapid shift toward social as a primary channel for discovery and engagement, we believe our investments in customer care, AI, and influencer marketing uniquely position us to lead brands through this transformation.”

First Quarter 2025 Financial Highlights

Revenue

Revenue was $109.3 million, up 13% compared to the first quarter of 2024.
Total remaining performance obligations (RPO) of $360.2 million as of March 31, 2025, up 24% year-over-year.
Current remaining performance obligations (cRPO) of $255.8 million as of March 31, 2025, up 21% year-over-year.

Operating Income (Loss)

GAAP operating loss was ($11.2) million, compared to ($13.3) million in the first quarter of 2024.
Non-GAAP operating income was $12.5 million, compared to $6.0 million in the first quarter of 2024.

Net Loss

GAAP net loss was ($11.2) million, compared to ($13.6) million in the first quarter of 2024.
Non-GAAP net income was $12.5 million, compared to $5.7 million in the first quarter of 2024.
GAAP net loss per share was ($0.19) based on 57.9 million weighted-average shares of common stock outstanding, compared to ($0.24) based on 56.3 million weighted-average shares of common stock outstanding in the first quarter of 2024.
Non-GAAP net income per share was $0.22 based on 57.9 million weighted-average shares of common stock outstanding, compared to $0.10 based on 56.3 million weighted-average shares of common stock outstanding in the first quarter of 2024.

Cash

Cash and equivalents and marketable securities totaled $101.9 million as of March 31, 2025, compared to $90.2 million as of December 31, 2024.
Net cash provided by operating activities was $18.1 million, compared to $11.2 million in the first quarter of 2024.
Non-GAAP free cash flow was $19.5 million, compared to $11.3 million in the first quarter of 2024.

See “Use of Non-GAAP Financial Measures” below for definitions of Non-GAAP operating income (loss), Non-GAAP net income (loss), Non-GAAP net income (loss) per share and Non-GAAP free cash flow and the financial tables that accompany this release for reconciliations of our non-GAAP measures to their closest comparable GAAP measures. See “Key Business Metrics” below for how Sprout Social defines RPO, cRPO, the number of customers contributing over $10,000 in ARR and the number of customers contributing over $50,000 in ARR.

Customer Metrics

Grew number of customers contributing over $10,000 in ARR to 9,381 customers as of March 31, 2025, up 6% compared to March 31, 2024.
Grew number of customers contributing over $50,000 in ARR to 1,766 customers as of March 31, 2025, up 22% compared to March 31, 2024.

Recent Customer Highlights

During the first quarter, we had the opportunity to grow with new and existing customers like: Palo Alto, NASCAR, Interscope Records, Avis Budget Car Rental, and Axos Bank.

Recent Business Highlights

Sprout Social recently:

Announced a refreshed, intuitive design along with powerful AI-driven natural language discovery and data analysis capabilities for the Sprout Social Influencer Marketing platform (link)
Celebrated 15 years of Sprout empowering brands to drive business-wide impact with social (link)

Second Quarter and 2025 Financial Outlook

For the second quarter of 2025, the Company currently expects:

Total revenue between $110.4 million and $111.2 million.
Non-GAAP operating income between $8.4 million and $9.4 million.
Non-GAAP net income per share between $0.14 and $0.16 based on approximately 58.8 million weighted-average shares of common stock outstanding.

For the full year 2025, the Company currently expects:

Total revenue between $448.9 million and $453.9 million.
Non-GAAP operating income between $40.7 million and $45.7 million.
Non-GAAP net income per share between $0.69 and $0.77 based on approximately 59.1 million weighted-average shares of common stock outstanding.

The Company’s second quarter and 2025 financial outlook is based on a number of assumptions that are subject to change and many of which are outside the Company’s control. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that the Company will achieve these results.

The Company does not provide guidance for operating loss, the most directly comparable GAAP measure to non-GAAP operating income, or net loss per share, the most directly comparable GAAP measure to non-GAAP net income per share, and similarly cannot provide a reconciliation between its forecasted non-GAAP operating income and non-GAAP net income per share and these comparable GAAP measures without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future financial results.

Conference Call Information

The financial results and business highlights will be discussed on a conference call and webcast scheduled at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) today, May 8, 2025. Online registration for this event conference call can be found at https://registrations.events/direct/Q4I191310. The live webcast of the conference call can be accessed from Sprout Social’s investor relations website at http://investors.sproutsocial.com.

Following completion of the events, a webcast replay will also be available at http://investors.sproutsocial.com for 12 months.

About Sprout Social
Sprout Social is a global leader in social media management and analytics software. Sprout’s unified platform puts powerful social data into the hands of approximately 30,000 brands so they can make strategic decisions that drive business growth and innovation. With a full suite of social media management solutions, Sprout offers comprehensive publishing and engagement functionality, customer care, connected workflows and AI-powered business intelligence. Sprout’s award-winning software operates across all major social media networks and digital platforms. For more information about Sprout Social (NASDAQ: SPT), visit sproutsocial.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “explore,” ”future,” “intend,” “long-term model,” “may,” “medium to longer term goals,” “might,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to our market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures and customer and financial growth rates, our Q2 2025 and full year 2025 financial outlook, our plans and objectives for future operations, growth, initiatives or strategies. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others: we may not be able to sustain our revenue and customer growth rate in the future, including due to risks associated with our strategic focus on enterprise customers; price increases have and may continue to negatively impact demand for our products, customer acquisition and retention and reduce the total number of customers or customer additions; our business would be harmed by any significant interruptions, delays or outages in services from our platform, our API providers, or certain social media platforms; if we are unable to attract potential customers through unpaid channels, convert this traffic to free trials or convert free trials to paid subscriptions, our business and results of operations may be adversely affected; we may be unable to successfully enter new markets, manage our international expansion and comply with any applicable international laws and regulations; we may be unable to integrate acquired businesses or technologies successfully or achieve the expected benefits of such acquisitions and investments; unstable market, economic, and political conditions, such as recession risks, effects of inflation, trade tensions, changes in government spending, labor shortages, supply chain issues, high interest rates, and the impacts of current and potential future bank failures and ongoing overseas conflicts, have and could continue to adversely impact our business and that of our existing and prospective customers, which may result in reduced demand for our products; we may not be able to generate sufficient cash to service our indebtedness; covenants in our credit agreement may restrict our operations, and if we do not effectively manage our business to comply with these covenants, our financial condition could be adversely impacted; any cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks on which we rely could negatively affect our business; changing regulations relating to privacy, information security and data protection could increase our costs, affect or limit how we collect and use personal information and harm our brand; and risks related to ongoing legal proceedings. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 26, 2025 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, to be filed with the SEC as well as any future reports that we file with the SEC. Moreover, you should interpret many of the risks identified in those reports as being heightened as a result of the current and ongoing instability in market, economic, and political conditions. Forward-looking statements speak only as of the date the statements are made and are based on information available to Sprout Social at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Sprout Social assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Use of Non-GAAP Financial Measures

We have provided in this press release certain financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Our management uses these non-GAAP financial measures internally in analyzing our financial results and believes that use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable financial measures prepared in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. A reconciliation of our historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.

Non-GAAP gross profit. We define non-GAAP gross profit as GAAP gross profit, excluding stock-based compensation expense, amortization expense associated with the acquired developed technology from our acquisition of Tagger Media, Inc. (the “Tagger acquisition”) and restructuring charges. We believe non-GAAP gross profit provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of stock-based compensation, amortization expense and restructuring charges, which are often unrelated to overall operating performance.

Non-GAAP gross margin. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue.

Non-GAAP operating income. We define non-GAAP operating income as GAAP loss from operations, excluding stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger acquisition and restructuring charges. We believe non-GAAP operating income provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of stock-based compensation, amortization expense and restructuring charges, which are often unrelated to overall operating performance.

Non-GAAP operating margin. We define non-GAAP operating margin as non-GAAP operating income (loss) as a percentage of revenue.

Non-GAAP net income. We define non-GAAP net income as GAAP net loss, excluding stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger acquisition and restructuring charges. We believe non-GAAP net income provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this non-GAAP financial measure eliminates the effect of stock-based compensation, amortization expense and restructuring charges, which are often unrelated to overall operating performance.

Non-GAAP net income per share. We define non-GAAP net income per share as GAAP net loss per share attributable to common shareholders, basic and diluted, excluding stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger acquisition and restructuring charges. We believe non-GAAP net income per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this non-GAAP financial measure eliminates the effect of stock-based compensation, amortization expense and restructuring charges, which are often unrelated to overall operating performance.

Non-GAAP free cash flow. We define non-GAAP free cash flow as net cash provided by operating activities less expenditures for property and equipment, interest payments on our revolving credit facility and payments related to restructuring charges. Non-GAAP free cash flow does not reflect our future contractual obligations or represent the total increase or decrease in our cash balance for a given period. We believe non-GAAP free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash provided by our core operations that, after expenditures for property and equipment, interest payments on our revolving credit facility and payments related to restructuring charges, is available for strategic initiatives.

Non-GAAP free cash flow margin. We define non-GAAP free cash flow margin as non-GAAP free cash flow as a percentage of revenue.

Non-GAAP sales and marketing expenses, non-GAAP research and development expenses and non-GAAP general and administrative expenses. Non-GAAP sales and marketing expenses, non-GAAP research and development expenses and non-GAAP general and administrative expenses are defined as sales and marketing expenses, research and development expenses and general and administrative expenses, respectively, less stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger acquisition and restructuring charges. We believe these non-GAAP measures provide our management and investors with insight into day-to-day operating expenses given that these measures eliminate the effect of stock-based compensation, amortization expense associated with the acquired intangible assets from the Tagger acquisition and restructuring charges.

Key Business Metrics

Remaining performance obligations (“RPO”). RPO, or remaining performance obligations, represents contracted revenue that has not yet been recognized, and includes deferred revenue and amounts that will be invoiced and recognized in future periods.

Current remaining performance obligations (“cRPO”). cRPO, or current RPO, represents contracted revenue that has not yet been recognized, and includes deferred revenue and amounts that will be invoiced and recognized in the next 12 months.

Number of customers contributing more than $10,000 in ARR. We define number of customers contributing more than $10,000 in ARR as those on a paid subscription plan that had more than $10,000 in ARR as of a period end. We view the number of customers that contribute more than $10,000 in ARR as a measure of our ability to scale with our customers and attract larger organizations. We believe this represents potential for future growth, including expanding within our current customer base.

Number of customers contributing more than $50,000 in ARR. We define number of customers contributing more than $50,000 in ARR as those on a paid subscription plan that had more than $50,000 in ARR as of a period end. We view the number of customers that contribute more than $50,000 in ARR as a measure of our ability to scale with large customers and attract sophisticated organizations. We believe this represents potential for future growth, including expanding within our current customer base.

While we no longer believe that ARR and number of customers are key performance indicators of Sprout Social’s business, these metrics are necessary for an understanding of how we define number of customers contributing over $10,000 in ARR and number of customers contributing over $50,000 in ARR. For this purpose, we define ARR as the annualized revenue run-rate of subscription agreements from all customers as of the last date of the specified period and we define a customer as a unique account, multiple accounts containing a common non-personal email domain, or multiple accounts governed by a single agreement or entity.

Availability of Information on Sprout Social’s Website and Social Media Profiles

Investors and others should note that Sprout Social routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Sprout Social Investors website. We also intend to use the social media profiles listed below as a means of disclosing information about us to our customers, investors and the public. While not all of the information that the Company posts to the Sprout Social Investors website or to social media profiles is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Sprout Social to review the information that it shares at the Investors link located at the bottom of the page on www.sproutsocial.com and to regularly follow our social media profiles. Users may automatically receive email alerts and other information about Sprout Social when enrolling an email address by visiting “Email Alerts” in the “Shareholder Services” section of Sprout Social’s Investor website at https://investors.sproutsocial.com/.

Social Media Profiles:
www.twitter.com/SproutSocial
www.twitter.com/SproutSocialIR
www.facebook.com/SproutSocialInc
www.linkedin.com/company/sprout-social-inc-/
www.instagram.com/sproutsocial

Contact

Media:
Layla Revis
Email: pr@sproutsocial.com
Phone: (866) 878-3231

Investors:
Alex Kurtz
Twitter: @SproutSocialIR
Email: investors@sproutsocial.com
Phone: (312) 528-9166

Sprout Social, Inc.
Consolidated Statements of Operations (Unaudited)
*(in thousands, except share and per share data)*

	Three Months Ended March 31,
		2025			2024
Revenue
Subscription	$	108,680		$	95,789
Professional services and other		609			995
Total revenue		109,289			96,784
Cost of revenue(1)
Subscription		24,473			22,205
Professional services and other		365			223
Total cost of revenue		24,838			22,428
Gross profit		84,451			74,356
Operating expenses
Research and development(1)		23,229			23,769
Sales and marketing(1)		47,452			44,540
General and administrative(1)		24,972			19,334
Total operating expenses		95,653			87,643
Loss from operations		(11,202	)		(13,287	)
Interest expense		(514	)		(1,046	)
Interest income		895			1,035
Other expense, net		(168	)		(406	)
Loss before income taxes		(10,989	)		(13,704	)
Income tax expense (benefit)		231			(129	)
Net loss	$	(11,220	)	$	(13,575	)
Net loss per share attributable to common shareholders, basic and diluted	$	(0.19	)	$	(0.24	)
Weighted-average shares outstanding used to compute net loss per share, basic and diluted		57,890,898			56,344,242

(1) Includes stock-based compensation expense as follows:
	Three Months Ended March 31,
		2025			2024
Cost of revenue	$	746		$	925
Research and development		6,206			5,450
Sales and marketing		5,936			7,376
General and administrative		6,907			4,315
Total stock-based compensation expense	$	19,795		$	18,066

Sprout Social, Inc.
Consolidated Balance Sheets (Unaudited)
*(in thousands, except share and per share data)*

	March 31, 2025			December 31, 2024
Assets
Current assets
Cash and cash equivalents	$	100,902		$	86,437
Marketable securities		1,000			3,745
Accounts receivable, net of allowances of $3,119 and $2,169 at March 31, 2025 and December 31, 2024, respectively		64,783			84,033
Deferred Commissions		21,803			20,184
Prepaid expenses and other assets		19,057			15,816
Total current assets		207,545			210,215
Property and equipment, net		10,902			10,951
Deferred commissions, net of current portion		52,327			51,653
Operating lease, right-of-use asset		10,985			11,326
Goodwill		121,315			121,315
Intangible assets, net		20,621			21,914
Other assets, net		962			967
Total assets	$	424,657		$	428,341
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	7,260		$	6,984
Deferred revenue		173,952			178,585
Operating lease liability		3,504			3,747
Accrued wages and payroll related benefits		16,002			20,567
Accrued expenses and other		13,378			10,869
Total current liabilities		214,096			220,752
Revolving credit facility		20,000			25,000
Deferred revenue, net of current portion		944			1,101
Operating lease liability, net of current portion		13,960			14,543
Other non-current liabilities		348			351
Total liabilities		249,348			261,747

Stockholders’ equity

Class A common stock, par value $0.0001 per share; 1,000,000,000 shares authorized; 54,787,894 and 51,845,950 shares issued and outstanding, respectively, at March 31, 2025; 54,219,684 and 51,277,740 shares issued and outstanding, respectively, at December 31, 2024		4			4
Class B common stock, par value $0.0001 per share; 25,000,000 shares authorized; 6,536,301 and 6,329,357 shares issued and outstanding, respectively, at March 31, 2025; 6,687,582 and 6,480,638 shares issued and outstanding, respectively, at December 31, 2024		1			1
Additional paid-in capital		578,328			558,391
Treasury stock, at cost		(37,422	)		(37,422	)
Accumulated other comprehensive income		1			3
Accumulated deficit		(365,603	)		(354,383	)
Total stockholders’ equity		175,309			166,594
Total liabilities and stockholders’ equity	$	424,657		$	428,341

Sprout Social, Inc.
Consolidated Statements of Cash Flows (Unaudited)
*(in thousands)*

	Three Months Ended March 31,
		2025			2024
Cash flows from operating activities
Net loss	$	(11,220	)	$	(13,575	)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization of property, equipment and software		1,225			887
Amortization of line of credit issuance costs		52			52
Accretion of discount on marketable securities		(7	)		(223	)
Amortization of acquired intangible assets		1,293			1,570
Amortization of deferred commissions		5,283			3,523
Amortization of right-of-use operating lease asset		341			436
Stock-based compensation expense		19,795			18,066
Provision for accounts receivable allowances		1,129			56
Changes in operating assets and liabilities, excluding impact from business acquisition
Accounts receivable		18,122			13,017
Prepaid expenses and other current assets		(3,229	)		(7,670	)
Deferred commissions		(7,577	)		(6,783	)
Accounts payable and accrued expenses		(1,487	)		(2,865	)
Deferred revenue		(4,790	)		5,648
Lease liabilities		(826	)		(975	)
Net cash provided by operating activities		18,104			11,164
Cash flows from investing activities
Expenditures for property and equipment		(1,357	)		(1,092	)
Payments for business acquisition, net of cash acquired		–			(1,409	)
Proceeds from maturity of marketable securities		2,750			22,555
Net cash provided by investing activities		1,393			20,054
Cash flows from financing activities
Repayments of line of credit		(5,000	)		(10,000	)
Employee taxes paid related to the net share settlement of stock-based awards		–			(1,476	)
Net cash used in financing activities		(5,000	)		(11,476	)
Net increase in cash, cash equivalents, and restricted cash		14,497			19,742
Cash, cash equivalents, and restricted cash
Beginning of period		90,418			53,695
End of period	$	104,915		$	73,437

The following schedule reflects our non-GAAP financial measures and reconciles our non-GAAP financial measures to the related GAAP financial measures (in thousands, except per share data):

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended March 31,
		2025			2024
Reconciliation of Non-GAAP gross profit
Gross profit	$	84,451		$	74,356
Stock-based compensation expense		746			925
Amortization of acquired developed technology		705			705
Restructuring charges		416			–
Non-GAAP gross profit	$	86,318		$	75,986

Reconciliation of Non-GAAP operating income
Loss from operations	$	(11,202	)	$	(13,287	)
Stock-based compensation expense		19,795			18,066
Amortization of acquired intangible assets		1,213			1,213
Restructuring charges		2,731			–
Non-GAAP operating income	$	12,537		$	5,992

Reconciliation of Non-GAAP net income
Net loss	$	(11,220	)	$	(13,575	)
Stock-based compensation expense		19,795			18,066
Amortization of acquired intangible assets		1,213			1,213
Restructuring charges		2,731			–
Non-GAAP net income	$	12,519		$	5,704

Reconciliation of Non-GAAP net income per share
Net loss per share attributable to common shareholders, basic and diluted	$	(0.19	)	$	(0.24	)
Stock-based compensation expense		0.34			0.32
Amortization of acquired intangible assets		0.02			0.02
Restructuring charges		0.05			–
Non-GAAP net income per share	$	0.22		$	0.10

Reconciliation of Non-GAAP free cash flow
Net cash provided by operating activities	$	18,104		$	11,164
Expenditures for property and equipment		(1,357	)		(1,092	)
Interest paid on credit facility		484			1,260
Payments related to restructuring charges		2,249			–
Non-GAAP free cash flow	$	19,480		$	11,332

The MIL Network –

May 9, 2025

MIL-OSI: PubMatic Announces First Quarter 2025 Financial Results; Board of Directors Authorizes $100M Expansion of Share Repurchase Program

Source: GlobeNewswire (MIL-OSI)

Delivered revenue and adjusted EBITDA ahead of guidance;

Revenue from omnichannel video, including CTV, grew 20% and was 40% of total revenue;

CTV revenue grew over 50% year-over-year; and

Supply Path Optimization represented a record 55%+ of total activity

NO-HEADQUARTERS/REDWOOD CITY, Calif., May 08, 2025 (GLOBE NEWSWIRE) — PubMatic, Inc. (Nasdaq: PUBM), an independent technology company delivering digital advertising’s supply chain of the future, today reported financial results for the first quarter ending March 31, 2025.

“We are pleased with our Q1 performance, exceeding guidance on both the top and bottom line driven by the secular growth areas in our business. Ongoing investments in product innovation and go to market teams drove 21% year over year growth in our underlying business, with momentum carrying into April,” said Rajeev Goel, co-founder and CEO at PubMatic. “We firmly believe the current environment serves as a catalyst to accelerate the shift to programmatic and AI-driven solutions. Sell-side activation is emerging as the preferred model across the open internet as advertiser demand for more transparent, performant paths to inventory and data continues to increase. PubMatic sits at the forefront of this transformation while creating value for the entire supply chain.”

First Quarter 2025 Financial Highlights

Revenue in the first quarter of 2025 was $63.8 million, compared to $66.7 million in the same period of 2024;
Net dollar-based retention¹ was 102% for the trailing twelve-months ended March 31, 2025, compared to 106% in the comparable trailing twelve-month period a year ago;
GAAP net loss was $(9.5) million with a margin of (15)%, or $(0.20) per diluted share in the first quarter, compared to GAAP net loss of $(2.5) million with a margin of (4)%, or $(0.05) per diluted share in the same period of 2024;
Adjusted EBITDA was $8.5 million, or 13% margin, compared to $15.1 million, or a 23% margin, in the same period of 2024;
Non-GAAP net loss was $(1.8) million, or $(0.04) per diluted share in the first quarter, compared to Non-GAAP net income of $4.8 million, or $0.09 per diluted share in the same period of 2024;
Net cash provided by operating activities was $15.6 million, compared to $24.3 million in the same period of 2024;
Total cash, cash equivalents, and marketable securities of $144.1 million as of March 31, 2025 with no debt;
Through March 31, 2025, used $138.2 million to repurchase 8.7 million shares of Class A common stock, representing 17% of fully diluted shares as of the program’s inception. PubMatic’s Board of Directors has authorized a $100.0 million expansion of the share repurchase program through 2026.

The section titled “Non-GAAP Financial Measures” below describes our usage of non-GAAP financial measures. Reconciliations between historical GAAP and non-GAAP information are contained at the end of this press release following the accompanying financial data.

Business Highlights

Omnichannel platform drives revenue in key secular growth areas

Revenue from CTV grew over 50% year-over-year. PubMatic partners with 80% of the top 30 streaming publishers.
Revenue from omnichannel video, which includes CTV, grew 20% year-over-year and represented 40% of total revenue.

PubMatic’s Sell-Side Platform continues to scale; deliver performance

Premium CTV inventory continues to scale, with new and expanded partnerships across the globe including Spectrum Reach, the advertising division of Charter Communications, TCL for live sports streaming content and the BBC’s free ad supported streaming channels.
Supply Path Optimization represented a record 55%+ of total activity on our platform in Q1 2025, up from 50% a year ago, driven by Activate, CTV Marketplace, and robust sell-side targeting capabilities. PubMatic received the The Supply Path Optimization (SPO) Award as part of AdExchanger’s 2025 Programmatic Impact Awards, highlighting the performance impact of Activate.
Activity from mid-market DSPs that specialize in performance marketing almost tripled on a year-over-year basis. These buyers are rapidly scaling ad spend on PubMatic as they prioritize access to premium supply, addressable audiences, and full-funnel sell-side solutions.
Kroger Precision Marketing (KPM) consolidated activity on PubMatic as part of their effort to improve media performance by reducing the number of supply partners by 70%. As a result of the partnership, KPM saw a 20% increase in click through rates in campaigns transacted via PubMatic.
Publishers using PubMatic’s audience curation tools see up to a 10% increase in advertising revenue, due to an increased diversity of ad buyers and higher CPMs.

Launched upgraded Gen AI buyer platform

This end-to-end platform combines proprietary supply-side intelligence with AI-powered buying tools. It delivers efficiency gains and superior outcomes for advertisers, agencies and curators, while streamlining every stage of the media buying process—from audience and inventory discovery and forecasting to curation, activation, and performance optimization.
Offers ad buyers direct access to nearly the entire open internet – approximately 1,950 premium publishers, privacy-safe audience data from 190 data partners, and over 829 billion daily ad impressions.

Owned and operated infrastructure drives operational efficiencies

Infrastructure optimization initiatives combined with limited capex drove nearly 75 trillion impressions processed in Q1 2025, an increase of 29% over Q1 2024.
Cost of revenue per million impressions processed decreased 20% on a trailing twelve month period, as compared to the prior period.

“We delivered a strong first quarter and our 36th consecutive quarter of adjusted EBITDA profitability. Looking to the second half of the year, based on the strong momentum we are seeing in our underlying business, combined with our go-to-market and innovation investments, we expect our underlying revenues to continue growing 15%+,” said Steve Pantelick, CFO at PubMatic. “Additionally, we have implemented a prudent operational plan that will allow us to continue investing behind the fastest growing programmatic opportunities, while also protecting our profitability and balance sheet. This, coupled with our durable business model, gives us confidence that we can successfully navigate the current environment and be well positioned for future market share gains.”

Financial Outlook

Our outlook assumes that general market conditions do not significantly deteriorate as it relates to current macroeconomic and geopolitical conditions.

Accordingly, we estimate the following for the second quarter of 2025:

Revenue to be between $66 million to $70 million, inclusive of the impact from one of our top DSP buyers that revised its auction approach in mid 2024.
Adjusted EBITDA to be in the range of $9 million to $12 million, representing approximately a 17% margin at the midpoint. Adjusted EBITDA expectation assumes a negative foreign currency exchange impact predominantly from Euro and Pound Sterling expenses.

Although we provide guidance for adjusted EBITDA, we are not able to provide guidance for net income, the most directly comparable GAAP measure. Certain elements of the composition of GAAP net income, including stock-based compensation expenses, are not predictable, making it impractical for us to provide guidance on net income or to reconcile our adjusted EBITDA guidance to net income without unreasonable efforts. For the same reason, we are unable to address the probable significance of the unavailable information.

Conference Call and Webcast details

PubMatic will host a conference call to discuss its financial results on Tuesday, May 8, 2025 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). A live webcast of the call can be accessed from PubMatic’s Investor Relations website at https://investors.pubmatic.com. An archived version of the webcast will be available from the same website after the call.

Non-GAAP Financial Measures

In addition to our results determined in accordance with U.S. generally accepted accounting principles (GAAP), including, in particular operating income (loss), net cash provided by operating activities, and net income (loss), we believe that adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share and free cash flow, each a non-GAAP measure, are useful in evaluating our operating performance. We define adjusted EBITDA as net income (loss) adjusted for stock-based compensation expense, depreciation and amortization, interest income, and benefit from income taxes. Adjusted EBITDA margin represents adjusted EBITDA calculated as a percentage of revenue. We define non-GAAP net income (loss) as net income (loss) adjusted for stock-based compensation expense and adjustments for income taxes. We define non-GAAP free cash flow as net cash provided by operating activities reduced by purchases of property and equipment and capitalized software development costs.

In addition to operating income (loss) and net income (loss), we use adjusted EBITDA, non-GAAP net income (loss), and free cash flow as measures of operational efficiency. We believe that these non-GAAP financial measures are useful to investors for period to period comparisons of our business and in understanding and evaluating our operating results for the following reasons:

Adjusted EBITDA and non-GAAP net income (loss) are widely used by investors and securities analysts to measure a company’s operating performance without regard to items such as stock-based compensation expense, depreciation and amortization, interest expense, and benefit from income taxes that can vary substantially from company to company depending upon their financing, capital structures and the method by which assets were acquired; and,
Our management uses adjusted EBITDA, non-GAAP net income (loss), and free cash flow in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of operating performance or, in the case of free cash flow, as a measure of liquidity, and the effectiveness of our business strategies and in communications with our board of directors concerning our financial performance; and adjusted EBITDA provides consistency and comparability with our past financial performance, 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.

Our use of non-GAAP financial measures has limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are as follows:

Adjusted EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; (b) the potentially dilutive impact of stock-based compensation; or (c) tax payments that may represent a reduction in cash available to us;
Although depreciation and amortization expense are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; and
Non-GAAP net income (loss) does not include: (a) the potentially dilutive impact of stock-based compensation; and (b) income tax effects for stock-based compensation

Because of these and other limitations, you should consider adjusted EBITDA, non-GAAP net income, and free cash flow along with other GAAP-based financial measures, including net income (loss) and cash flow from operating activities, and our GAAP financial results.

Forward Looking Statements

This press release contains “forward-looking statements” regarding our future business expectations, including our guidance relating to our revenue and adjusted EBITDA for the second quarter of 2025 and capex for the full year 2025, our expectations regarding our total addressable market, future market growth, and our ability to gain market share. These forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions and may differ materially from actual results due to a variety of factors including: our dependency on the overall demand for advertising and the channels we rely on; our existing customers not expanding their usage of our platform, or our failure to attract new publishers and buyers; our ability to maintain and expand access to spend from buyers and valuable ad impressions from publishers; the rejection of the use of digital advertising by consumers through opt-in, opt-out or ad-blocking technologies or other means; our failure to innovate and develop new solutions that are adopted by publishers; the war between Ukraine and Russia and the ongoing conflict between Israel and Palestine, and the related measures taken in response by the global community; the impacts of inflation, tariffs and recessionary fears as well as fiscal tightening, changes in the interest rate environment and continuing volatility in global capital markets; global macroeconomic uncertainty; limitations imposed on our collection, use or disclosure of data about advertisements; the lack of similar or better alternatives to the use of third-party cookies, mobile device IDs or other tracking technologies if such uses are restricted; any failure to scale our platform infrastructure to support anticipated growth and transaction volume; liabilities or fines due to publishers, buyers, and data providers not obtaining consents from consumers for us to process their personal data; any failure to comply with laws and regulations related to data privacy, data protection, information security, and consumer protection; and our ability to manage our growth. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. For more information about risks and uncertainties associated with our business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of our SEC filings, including but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which are available on our investor relations website at https://investors.pubmatic.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. All information in this press release is as of May 8, 2025. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About PubMatic

PubMatic is an independent technology company maximizing customer value by delivering digital advertising’s supply chain of the future. PubMatic’s sell-side platform empowers the world’s leading digital content creators across the open internet to control access to their inventory and increase monetization by enabling marketers to drive return on investment and reach addressable audiences across ad formats and devices. Since 2006, PubMatic’s infrastructure-driven approach has allowed for the efficient processing and utilization of data in real time. By delivering scalable and flexible programmatic innovation, PubMatic improves outcomes for its customers while championing a vibrant and transparent digital advertising supply chain.


CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited)

	March 31, 2025			December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	101,811		$	100,452
Marketable securities		42,315			40,135
Accounts receivable, net		349,123			424,814
Prepaid expenses and other current assets		12,018			10,145
Total current assets		505,267			575,546
Property, equipment and software, net		54,386			58,522
Operating lease right-of-use assets		42,575			44,402
Acquisition-related intangible assets, net		3,889			4,284
Goodwill		29,577			29,577
Deferred tax assets		29,619			24,864
Other assets, non-current		3,289			2,324
TOTAL ASSETS	$	668,602		$	739,519
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	323,611		$	386,602
Accrued liabilities		20,309			26,365
Operating lease liabilities, current		6,241			5,843
Total current liabilities		350,161			418,810
Operating lease liabilities, non-current		38,649			39,538
Other liabilities, non-current		4,191			3,908
TOTAL LIABILITIES		393,001			462,256
Stockholders’ equity
Common stock		6			6
Treasury stock		(150,409	)		(146,796	)
Additional paid-in capital		286,471			275,304
Accumulated other comprehensive loss		(366	)		(636	)
Retained earnings		139,899			149,385
TOTAL STOCKHOLDERS’ EQUITY		275,601			277,263
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	668,602		$	739,519


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited)

	Three Months Ended March 31,
		2025			2024
Revenue	$	63,825		$	66,701
Cost of revenue⁽¹⁾		25,588			25,424
Gross profit		38,237			41,277
Operating expenses:⁽¹⁾
Technology and development		8,772			7,960
Sales and marketing		26,799			24,815
General and administrative		14,569			14,027
Total operating expenses		50,140			46,802
Operating loss		(11,903	)		(5,525	)
Interest income		1,593			2,564
Other income (expense), net		(1,014	)		258
Loss before income taxes		(11,324	)		(2,703	)
Benefit from income taxes		(1,838	)		(249	)
Net loss	$	(9,486	)	$	(2,454	)

Basic and diluted net loss per share of Class A and Class B stock	$	(0.20	)	$	(0.05	)
Weighted-average shares used to compute net loss per share attributable to common stockholders:
Basic		48,346			50,039
Diluted		48,346			50,039

⁽¹⁾Stock-based compensation expense includes the following:


STOCK-BASED COMPENSATION EXPENSE (In thousands) (unaudited)

	Three Months Ended March 31,
		2025		2024
Cost of revenue	$	474	$	437
Technology and development		1,585		1,441
Sales and marketing		3,463		3,238
General and administrative		4,176		3,995
Total stock-based compensation expense	$	9,698	$	9,111


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In thousands) (unaudited)

	Three Months Ended March 31,
		2025			2024
CASH FLOW FROM OPERATING ACTIVITIES:
Net loss	$	(9,486	)	$	(2,454	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		11,676			11,212
Stock-based compensation		9,698			9,111
Deferred income taxes		(4,754	)		(4,667	)
Accretion of discount on marketable securities		(454	)		(1,234	)
Non-cash operating lease expense		1,928			1,690
Other		(223	)		(1	)
Changes in operating assets and liabilities:
Accounts receivable		75,691			72,184
Prepaid expenses and other assets		5,681			(196	)
Accounts payable		(62,578	)		(58,444	)
Accrued liabilities		(11,287	)		(1,784	)
Operating lease liabilities		(590	)		(1,380	)
Other liabilities, non-current		319			257
Net cash provided by operating activities		15,621			24,294
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(1,441	)		(801	)
Capitalized software development costs		(6,880	)		(7,231	)
Purchases of marketable securities		(15,307	)		(34,336	)
Proceeds from maturities of marketable securities		13,559			38,500
Net cash used in investing activities		(10,069	)		(3,868	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of business combination indemnification claims holdback		—			(2,148	)
Proceeds from exercise of stock options		563			939
Principal payments on finance lease obligations		(35	)		(32	)
Payments to acquire treasury stock		(5,000	)		(17,500	)
Net cash used in financing activities		(4,472	)		(18,741	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		1,080			1,685
Effect of foreign currency on cash		279			—
CASH AND CASH EQUIVALENTS – Beginning of period		100,452			78,509
CASH AND CASH EQUIVALENTS – End of period	$	101,811		$	80,194


RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share amounts) (unaudited)

	Three Months Ended March 31,
		2025			2024
Reconciliation of net loss:
Net loss	$	(9,486	)	$	(2,454	)
Add back (deduct):
Stock-based compensation		9,698			9,111
Depreciation and amortization		11,676			11,212
Interest income		(1,593	)		(2,564	)
Benefit from income taxes		(1,838	)		(249	)
Adjusted EBITDA	$	8,457		$	15,056
Revenue	$	63,825		$	66,701
Adjusted EBITDA margin		13	%		23	%


	Three Months Ended March 31,
		2025			2024
Reconciliation of net loss per share:
Net loss	$	(9,486	)	$	(2,454	)
Add back (deduct):
Stock-based compensation		9,698			9,111
Adjustment for income taxes		(2,055	)		(1,886	)
Non-GAAP net income (loss)	$	(1,843	)	$	4,771
GAAP diluted EPS	$	(0.20	)	$	(0.05	)
Non-GAAP diluted EPS	$	(0.04	)	$	0.09
GAAP weighted average shares outstanding—diluted		48,346			50,039
Non-GAAP weighted average shares outstanding—diluted		48,346			55,006

Reported GAAP diluted loss and Non-GAAP diluted loss per share for the three months ended March 31, 2025, and reported GAAP diluted loss per share for the three months ended March 31, 2024 were calculated using basic share count. Non-GAAP diluted earnings per share for the three months ended March 31, 2024 was calculated using diluted share count which includes approximately 5 million shares of dilutive securities related to employee stock awards.


SUPPLEMENTAL CASH FLOW INFORMATION COMPUTATION OF FREE CASH FLOW, A NON-GAAP MEASURE (In thousands) (unaudited)

	Three Months Ended March 31,
		2025			2024
Reconciliation of cash provided by operating activities:
Net cash provided by operating activities	$	15,621		$	24,294
Less: Purchases of property and equipment		(1,441	)		(801	)
Less: Capitalized software development costs		(6,880	)		(7,231	)
Free cash flow	$	7,300		$	16,262

^¹ Net dollar-based retention is calculated by starting with the revenue from publishers in the trailing twelve months ended March 31, 2024 (Prior Period Revenue). We then calculate the revenue from these same publishers in the trailing twelve months ended March 31, 2025 (Current Period Revenue). Current Period Revenue includes any upsells and is net of contraction or attrition, but excludes revenue from new publishers. Our net dollar-based retention rate equals the Current Period Revenue divided by Prior Period Revenue. Net dollar-based retention rate is an important indicator of publisher satisfaction and usage of our platform, as well as potential revenue for future periods

The MIL Network –

May 9, 2025

MIL-OSI: Altus Group Reports Q1 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

TORONTO, May 08, 2025 (GLOBE NEWSWIRE) — Altus Group Limited (“Altus Group” or “the Company”) (TSX: AIF), a leading provider of commercial real estate (“CRE”) intelligence, announced today its financial and operating results for the first quarter ended March 31, 2025.

“Our strong performance in Q1 demonstrates the continued execution of our growth initiatives and our commitment to delivering value to stakeholders,” said Jim Hannon, Chief Executive Officer. “We successfully launched Benchmark Manager, signed dozens of asset-based pricing agreements, and achieved significant software bookings growth despite lower CRE transaction volumes year-over-year. Margin expanded across all business units and we improved cash flow, highlighting our operating leverage. In addition, we returned over $76 million to shareholders through buybacks this quarter. We look forward to building on this momentum.”

Selected Q1 2025 Information

C$M	Q1 2025	Q1 2024	% change
Revenue	$129.2	$125.4	(1.5%)	Constant Currency*
Recurring Revenue*	$98.8	$91.7	2.1%	Constant Currency
Profit (Loss) from continuing operations	($6.4)	($12.2)	47.1%	As Reported
Adjusted EBITDA*	$15.7	$10.9	29.7%	Constant Currency
Analytics Adjusted EBITDA margin*	26.2%	23.3%	200 bps	Constant Currency
Net cash provided by operating activities	$0.7	($3.0)	123.7%	As Reported
Free Cash Flow*	$(0.6)	($5.7)	89.3%	As Reported
Investment in share repurchases**	$76.3	$0.0	n/a
Funded debt to EBITDA ratio	1.44:1	2.15:1	n/a

*Denotes non-GAAP financial measure, non-GAAP ratio, total of segments measure, capital management measure, and/or supplementary and other financial measures as defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”). Please refer to the “Non-GAAP and Other Measures” section of this press release for further information.

**Investment in share repurchases represents the total cash consideration of the shares purchased for cancellation during the quarter under the Company’s Normal Course Issuer Bid.

Business Outlook

The Company maintains previously issued guidance for fiscal 2025. Additionally, given the macro environment, the Company is providing guidance for Q2 2025 as follows:

	FY 2025	Q2 2025
Analytics	4-7% total Analytics revenue growth 6-9% Recurring Revenue growth 250-350 bps of Adjusted EBITDA margin expansion	1-3% total Analytics revenue growth 3-5% Recurring Revenue growth 200-300 bps of Adjusted EBITDA margin expansion
Appraisals and Development Advisory	Low single digit revenue growth Adjusted EBITDA margin expansion	Flat revenue Adjusted EBITDA margin expansion
Consolidated	3-5% revenue growth 300-400 bps of Adjusted EBITDA margin expansion	1-3% revenue growth 200-300 bps of Adjusted EBITDA margin expansion

Note: Business Outlook presented on a Constant Currency basis over the corresponding period in 2024. Future acquisitions are not factored into this outlook.

Key assumptions for the business outlook by segment: Analytics: consistency and growth in number of assets on the Valuation Management Solutions platform, continued ARGUS cloud conversions, new sales (including New Bookings converting to revenue within Management’s expected timeline and uptake on new product functionality), client and software retention consistent with 2024 levels, pricing action, improved operating leverage, as well as consistent and gradually improving economic conditions in financial and CRE markets, in particular a stronger recovery in the second half of the year. Appraisal & Development Advisory: improved client profitability and improved operating leverage. The Consolidated outlook assumes that corporate costs will remain elevated throughout 2025 consistent with 2024 levels.

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.

Non-GAAP and Other Measures

Altus Group uses certain non-GAAP financial measures, non-GAAP ratios, total of segments measures, capital management measures, and supplementary and other financial measures as defined in NI 52-112. These non-GAAP and other financial measures include Adjusted Earnings (Loss), and Constant Currency; non-GAAP ratios such as Adjusted EPS; total of segments measures such as Adjusted EBITDA; capital management measures such as Free Cash Flow; and supplementary financial and other measures such as Adjusted EBITDA margin, Recurring Revenue. Management believes that these measures may assist investors in assessing an investment in the Company’s shares as they provide additional insight into the Company’s performance. Readers are cautioned that they are not defined performance measures, and do not have any standardized meaning under IFRS and may differ from similar computations as reported by other similar entities and, accordingly, may not be comparable to financial measures as reported by those entities. These measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with IFRS. Refer to the “Non-GAAP and Other Measures” section on Page 3 of the Management’s Discussion & Analysis dated May 8, 2025 for the period ended March 31, 2025 (the “MD&A”), which is incorporated by reference in this press release and which is available on SEDAR+ at www.sedarplus.ca for more information on each measure, including definitions and methods of calculation. A reconciliation of Adjusted EBITDA and Adjusted Earnings (Loss) to Profit (Loss) and Free Cash Flow to Net cash provided by (used in) operating activities is included at the end of this press release.

Forward-looking Information

Certain information in this press release may constitute “forward-looking information” within the meaning of applicable securities legislation. All information contained in this press release, other than statements of current and historical fact, is forward-looking information. Forward-looking information includes, but is not limited to, statements relating to expected financial and other benefits of acquisitions and the closing of acquisitions (including the expected timing of closing), as well as the discussion of our business, strategies and leverage (including the commitment to increase borrowing capacity), expectations of future performance, including any guidance on financial expectations, and our expectations with respect to cash flows and liquidity. Generally, forward-looking information can be identified by use of words such as “may”, “will”, “expect”, “believe”, “anticipate”, “estimate”, “intend”, “plan”, “would”, “could”, “should”, “continue”, “goal”, “objective”, “remain” and other similar terminology.

Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may not be known and may cause actual results, performance or achievements, industry results or events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that we identified and applied in drawing conclusions or making forecasts or projections set out in the forward-looking information (including sections entitled “Business Outlook”) include, but are not limited to: no significant impact on our business from changes or potential changes to trade regulations, including tariffs; engagement and product pipeline opportunities in Analytics will result in associated definitive agreements; continued adoption of cloud subscriptions by our customers; retention of material clients and bookings; sustaining our software and subscription renewals; successful execution of our business strategies; consistent and stable economic conditions or conditions in the financial markets including stable interest rates and credit availability for CRE; consistent and stable legislation in the various countries in which we operate; consistent and stable foreign exchange conditions; no disruptive changes in the technology environment; opportunity to acquire accretive businesses and the absence of negative financial and other impacts resulting from strategic investments or acquisitions on short term results; successful integration of acquired businesses; and continued availability of qualified professionals.

Inherent in the forward-looking information are known and unknown risks, uncertainties and other factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any results, performance or achievements expressed or implied by such forward-looking information. Those risks include, but are not limited to: the CRE market conditions; the general state of the economy; our financial performance; our financial targets; our international operations; acquisitions, joint ventures and strategic investments; business interruption events; third party information and data; cybersecurity; industry competition; professional talent; our subscription renewals; our sales pipeline; client concentration and loss of material clients; product enhancements and new product introductions; technology strategy; our use of technology; intellectual property; compliance with laws and regulations; privacy and data protection; artificial intelligence; our leverage and financial covenants; interest rates; inflation; our brand and reputation; our cloud transition; fixed price engagements; currency fluctuations; credit; tax matters; our contractual obligations; legal proceedings; regulatory review; health and safety hazards; our insurance limits; dividend payments; our share price; share repurchase programs; our capital investments; equity and debt financings; our internal and disclosure controls; and environmental, social and governance (“ESG”) matters and climate change, as well as those described in our annual publicly filed documents, including the Annual Information Form for the year ended December 31, 2024 (which are available on SEDAR+ at www.sedarplus.ca). 

Investors should not place undue reliance on forward-looking information as a prediction of actual results. The forward-looking information reflects management’s current expectations and beliefs regarding future events and operating performance and is based on information currently available to management. Although we have attempted to identify important factors that could cause actual results to differ materially from the forward-looking information contained herein, there are other factors that could cause results not to be as anticipated, estimated or intended. The forward-looking information contained herein is current as of the date of this press release and, except as required under applicable law, we do not undertake to update or revise it to reflect new events or circumstances. Additionally, we undertake no obligation to comment on analyses, expectations or statements made by third parties in respect of Altus Group, our financial or operating results, or our securities.

Certain information in this press release, including sections entitled “2025 Business Outlook”, may be considered as “financial outlook” within the meaning of applicable securities legislation. The purpose of this financial outlook is to provide readers with disclosure regarding Altus Group’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.

FOR FURTHER INFORMATION PLEASE CONTACT:

Camilla Bartosiewicz
Chief Communications Officer, Altus Group
(416) 641-9773
camilla.bartosiewicz@altusgroup.com

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

Interim Condensed Consolidated Statements of Comprehensive Income (Loss)
For the Three Months Ended March 31, 2025 and 2024
(Unaudited)
(Expressed in Thousands of Canadian Dollars, Except for Per Share Amounts)

	Three months ended March 31
	2025		2024 ⁽¹⁾
Revenues	$	129,165		$	125,418
Expenses
Employee compensation	88,306		88,110
Occupancy	1,496		1,216
Other operating	25,864		23,796
Depreciation of right-of-use assets	2,094		2,060
Depreciation of property, plant and equipment	948		951
Amortization of intangibles	7,349		8,410
Acquisition and related transition costs (income)	18		3,496
Share of (profit) loss of joint venture	231		158
Restructuring costs (recovery)	6,217		5,176
(Gain) loss on investments	138		186
Finance costs (income), net – leases	245		164
Finance costs (income), net – other	(1,512)		4,126
Profit (loss) before income taxes from continuing operations	(2,229)		(12,431)
Income tax expense (recovery)	4,194		(279)
Profit (loss) from continuing operations, net of tax	$	(6,423)		$	(12,152)
Profit (loss) from discontinued operations, net of tax	382,207		11,999
Profit (loss) for the period	$	375,784		$	(153)
Other comprehensive income (loss):
Items that may be reclassified to profit or loss in subsequent periods:
Currency translation differences	3,229		5,499
Other comprehensive income (loss), net of tax	3,229		5,499
Total comprehensive income (loss) for the period, net of tax	$	379,013		$	5,346

Earnings (loss) per share attributable to the shareholders of the Company during the period
Basic earnings (loss) per share:
Continuing operations	$(0.14)			$(0.27)
Discontinued operations	$8.34			$0.26
Diluted earnings (loss) per share:
Continuing operations	$(0.14)			$(0.27)
Discontinued operations	$8.34			$0.26

⁽¹⁾ Comparative figures have been restated to reflect discontinued operations.

Interim Condensed Consolidated Balance Sheets
As at March 31, 2025 and December 31, 2024
(Unaudited)
(Expressed in Thousands of Canadian Dollars)

	March 31, 2025		December 31, 2024
Assets
Current assets
Cash and cash equivalents	$	491,913		$	41,876
Trade receivables and other	146,346		144,812
Income taxes recoverable	3,175		5,099
Derivative financial instruments	1,013		8,928
	642,447		200,715
Assets held for sale	–		282,233
Total current assets	642,447		482,948
Non-current assets
Trade receivables and other	9,598		9,620
Derivative financial instruments	10,990		9,984
Investments	14,489		14,580
Investment in joint venture	25,374		25,605
Deferred tax assets	22,565		56,797
Right-of-use assets	17,235		19,420
Property, plant and equipment	13,213		13,217
Intangibles	210,319		214,614
Goodwill	407,636		404,176
Total non-current assets	731,419		768,013
Total assets	$	1,373,866		$	1,250,961
Liabilities
Current liabilities
Trade payables and other	$	221,630		$	216,390
Income taxes payable	40,743		3,017
Lease liabilities	14,726		11,009
	277,099		230,416
Liabilities directly associated with assets held for sale	–		57,680
Total current liabilities	277,099		288,096
Non-current liabilities
Trade payables and other	18,077		19,828
Lease liabilities	23,347		26,751
Borrowings	157,596		281,887
Deferred tax liabilities	20,653		17,179
Total non-current liabilities	219,673		345,645
Total liabilities	496,772		633,741
Shareholders’ equity
Share capital	739,172		798,087
Contributed surplus	(14,646)		21,394
Accumulated other comprehensive income (loss)	59,472		56,243
Retained earnings (deficit)	93,096		(275,935)
Reserves of assets held for sale	–		17,431
Total shareholders’ equity	877,094		617,220
Total liabilities and shareholders’ equity	$	1,373,866		$	1,250,961

Interim Condensed Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2025 and 2024
(Unaudited)
(Expressed in Thousands of Canadian Dollars)

	Three months ended March 31
	2025		2024
Cash flows from operating activities
Profit (loss) before income taxes from continuing operations	$	(2,229)		$	(12,431)
Profit (loss) before income taxes from discontinued operations	454,686		13,446
Profit (loss) before income taxes	$	452,457		$	1,015
Adjustments for:
Depreciation of right-of-use assets	2,094		2,773
Depreciation of property, plant and equipment	948		1,420
Amortization of intangibles	7,349		10,314
Finance costs (income), net – leases	245		279
Finance costs (income), net – other	(1,512)		4,132
Share-based compensation	3,596		5,776
Unrealized foreign exchange (gain) loss	(1,826)		(1,326)
(Gain) loss on investments	138		186
(Gain) loss on disposal of right-of-use assets, property, plant and equipment and intangibles	12		983
(Gain) loss on disposal of assets	(457,986)		–
(Gain) loss on equity derivatives	6,176		(6,453)
Share of (profit) loss of joint venture	231		158
Impairment of right-of-use assets, net of (gain) loss on sub-leases	3,534		12
Net changes in:
Operating working capital	(7,201)		(19,787)
Liabilities for cash-settled share-based compensation	(7,305)		4,831
Deferred consideration payables	–		81
Net cash generated by (used in) operations	950		4,394
Interest paid on borrowings	(1,790)		(4,828)
Interest paid on leases	(245)		(279)
Interest received	3,008		–
Income taxes paid	(1,218)		(2,259)
Income taxes refunded	–		3
Net cash provided by (used in) operating activities	705		(2,969)
Cash flows from financing activities
Proceeds from exercise of options	10,017		5,116
Financing fees paid	(513)		–
Proceeds from borrowings	–		20,000
Repayment of borrowings	(127,000)		(3,000)
Payments of principal on lease liabilities	(3,088)		(4,235)
Dividends paid	(6,507)		(6,042)
Treasury shares purchased for share-based compensation	(11,358)		(3,561)
Cancellation of shares	(76,304)		–
Net cash provided by (used in) financing activities	(214,753)		8,278
Cash flows from investing activities
Purchase of investments	(39)		(212)
Purchase of intangibles	(388)		(2,477)
Purchase of property, plant and equipment	(927)		(238)
Proceeds from sale of discontinued operations, net of cash disposed	655,811		–
Net cash provided by (used in) investing activities	654,457		(2,927)
Effect of foreign currency translation	912		3
Net increase (decrease) in cash and cash equivalents	441,321		2,385
Cash and cash equivalents, beginning of period	50,592		41,892
Cash and cash equivalents, end of period	$	491,913		$	44,277

Reconciliation of Profit (Loss) to Adjusted EBITDA and Adjusted Earnings (Loss)

The following table provides a reconciliation of Profit (Loss) to Adjusted EBITDA and Adjusted Earnings (Loss):

	Quarter ended March 31,
In thousands of dollars, except for per share amounts	2025		2024 ⁽¹⁾
Profit (loss) for the period	$	375,784		$	(153)
(Profit) loss from discontinued operations, net of tax	(382,207)		(11,999)
Occupancy costs calculated on a similar basis prior to the adoption of IFRS 16 ⁽²⁾	(2,213)		(2,443)
Depreciation of right-of-use assets	2,094		2,060
Depreciation of property, plant and equipment and amortization of intangibles ⁽⁸⁾	8,297		9,361
Acquisition and related transition costs (income)	18		3,496
Unrealized foreign exchange (gain) loss ⁽³⁾	(1,826)		(1,271)
(Gain) loss on disposal of right-of-use assets, property, plant and equipment and intangibles ⁽³⁾	12		515
Share of (profit) loss of joint venture	231		158
Non-cash share-based compensation costs ⁽⁴⁾	2,472		3,533
(Gain) loss on equity derivatives net of mark-to-market adjustments on related RSUs and DSUs ⁽⁴⁾	2,566		(2,591)
Restructuring costs (recovery)	6,217		5,176
(Gain) loss on investments ⁽⁵⁾	138		186
Other non-operating and/or non-recurring (income) costs ⁽⁶⁾	1,233		883
Finance costs (income), net – leases	245		164
Finance costs (income), net – other ⁽⁹⁾	(1,512)		4,126
Income tax expense (recovery) ⁽¹⁰⁾	4,194		(279)
Adjusted EBITDA	$	15,743		$	10,922
Depreciation of property, plant and equipment and amortization of intangibles of non-acquired businesses ⁽⁸⁾	(948)		(1,717)
Finance (costs) income, net – other ⁽⁹⁾	1,512		(4,126)
(Gain) loss on hedging transactions, including currency forward contracts and interest expense (income) on swaps ⁽⁹⁾	850		(897)
Tax effect of adjusted earnings (loss) adjustments ⁽¹⁰⁾	(8,305)		(4,539)
Adjusted earnings (loss)*	$	8,852		$	(357)
Weighted average number of shares – basic	45,817,956		45,533,236
Weighted average number of restricted shares	92,321		418,458
Weighted average number of shares – adjusted	45,910,277		45,951,694
Adjusted earnings (loss) per share ⁽⁷⁾	$0.19			$(0.01)

⁽¹⁾ Comparative figures have been restated to reflect discontinued operations.
⁽²⁾ Management uses the non-GAAP occupancy costs calculated on a similar basis prior to the adoption of IFRS 16 when analyzing financial and operating performance.
⁽³⁾ Included in other operating expenses in the interim condensed consolidated statements of comprehensive income (loss).
⁽⁴⁾ Included in employee compensation expenses in the interim condensed consolidated statements of comprehensive income (loss).
⁽⁵⁾ (Gain) loss on investments relates to changes in the fair value of investments in partnerships.
⁽⁶⁾ Other non-operating and/or non-recurring (income) costs for the quarter ended March 31, 2025 relate to legal, advisory, consulting, and other professional fees related to organizational and strategic initiatives. These are included in other operating expenses in the interim condensed consolidated statements of comprehensive income (loss).
⁽⁷⁾ Refer to page 4 of the MD&A for the definition of Adjusted EPS.
⁽⁸⁾ For the purposes of reconciling to Adjusted Earnings (Loss), the amortization of intangibles of acquired businesses is adjusted from Profit (loss) for the period. Per the quantitative reconciliation above, we have added back depreciation of property, plant and equipment and amortization of intangibles and then deducted the depreciation of property, plant and equipment and amortization of intangibles of non-acquired businesses to arrive at the amortization of intangibles of acquired businesses.
⁽⁹⁾ For the purposes of reconciling to Adjusted Earnings (Loss), the interest accretion on contingent consideration payables and (gains) losses on hedging transactions and interest expense (income) on swaps is adjusted from Profit (loss) for the period. Per the quantitative reconciliation above, we have added back finance costs (income), net – other and then deducted finance costs (income), net – other prior to adjusting for interest accretion on contingent consideration payables and (gains) losses on hedging transactions and interest expense (income) on swaps.
⁽¹⁰⁾ For the purposes of reconciling to Adjusted Earnings (Loss), only the tax impacts for the reconciling items noted in the definition of Adjusted Earnings (Loss) is adjusted from profit (loss) for the period.

Reconciliation of Free Cash Flow

Free Cash Flow	Quarter ended March 31,
In thousands of dollars	2025		2024
Net cash provided by (used in) operating activities	$	705		$	(2,969)
Less: Capital Expenditures	(1,315)		(2,715)
Free Cash Flow	$	(610)		$	(5,684)

Constant Currency

	Quarter ended March 31, 2025
	As presented	For Constant Currency
Canadian Dollar	1.000	1.000
United States Dollar	1.435	1.348
Pound Sterling	1.807	1.709
Euro	1.509	1.463
Australian Dollar	0.900	0.886

	Quarter ended March 31, 2024
	As presented	For Constant Currency
Canadian Dollar	1.000	1.000
United States Dollar	1.348	1.352
Pound Sterling	1.709	1.642
Euro	1.463	1.450
Australian Dollar	0.886	0.924

The MIL Network –

May 9, 2025

MIL-OSI USA: ICYMI: Secretary Chavez-DeRemer celebrates National Skilled Trades Day, highlights apprenticeship programs in Denver

Source: US Department of Labor

DENVER – U.S. Secretary of Labor Lori Chavez-DeRemer continued her America at Work Tour in Denver on May 7, meeting with leaders from the Western States Regional Council of Carpenters and the Southwest Mountain States Carpenters Training Fund at an apprentice training facility.

During Secretary Chavez-DeRemer’s meeting with leaders from both groups, she gained insight into WSRCC’s hands-on workforce development programs and learned more about the Southwest Carpenters Training Fund, which is responsible for training over 11,000 apprentices in 12 states.

The Secretary then participated in a discussion with leaders from CareerWise USA, a national nonprofit dedicated to expanding youth apprenticeships, as well as Pinnacol Assurance and Intertech Plastics, two of the dozens of companies that partner with CareerWise to hire apprentices.

“As the Labor Department continues our efforts to meet President Trump’s goal of one million new active apprentices, it is essential to connect with the organizations that are successfully advancing workforce development in their communities,” Secretary Chavez-DeRemer said. “The partnerships I learned about demonstrate the importance of collaboration to build a strong, resilient workforce, which is especially important as this Administration advances America First policies to bring jobs back to the U.S. I’ll continue moving forward with commonsense policies to ensure every worker, regardless of their background, has the skills they need to succeed.”

Also on May 7, Secretary Chavez-DeRemer joined the Colorado Business Roundtable’s “Future of Work: Looking Around Corners” conference. The discussion focused on exploring where the future of work is headed, including in emerging industries like artificial intelligence. The group discussed President Trump’s Executive Order, “Preparing Americans for High-Paying Skilled Trade Jobs of the Future,” highlighting the important role apprenticeships play in developing a workforce that fits region-specific needs.

Colorado marked Secretary Chavez-DeRemer’s seventh stop on her nationwide America at Work listening tour, which she launched in early April. So far, she has brought together union leaders, business owners, community college educators, local elected officials, and others to fulfill her goal of bringing real-world feedback from American workers to the policymaking table in Washington.

MIL OSI USA News –

May 9, 2025
MIL-OSI USA: What They Are Saying: Changes to New York’s Discovery Laws

Source: US State of New York

ollowing the FY26 State Budget agreement, District Attorneys, domestic violence survivor advocates, religious leaders and business groups are voicing their support for essential changes to New York’s discovery laws. Included in this year’s Budget, these discovery reforms build upon Governor Hochul’s record investments in proven crime prevention initiatives, while holding perpetrators accountable and safeguarding the right to a fair and speedy trial in New York State.

Rensselaer County District Attorney and DAASNY President-Elect and Mary Pat Donnelly said, “I am grateful to Governor Hochul for recognizing the important role which Discovery has in the efforts of prosecutors to secure justice for victims in New York State. These changes protect against technical dismissals, and the dangerous consequences of those dismissals. This is a critical investment in public safety; these changes will be effective in promoting a safer New York.”

Albany County District Attorney Lee C. Kindlon said, “I believe in pragmatic solutions to criminal justice issues, so I am grateful for Governor Hochul’s vision and leadership on Discovery reform. These common sense adjustments to the Discovery laws that the Governor fought for will help us restore justice for victims and provide us more tools to promote public safety.”

Wayne County District Attorney Christine K. Callanan said, “The original discovery legislation, while well-intentioned, had unintended consequences that allowed for gamesmanship and resulted in the dismissal of otherwise prosecutable cases. The recent reforms preserve the full disclosure of important discovery materials to defendants, ensuring transparency and fairness, while eliminating procedural loopholes that came at the cost of successful prosecutions and justice for victims. This balanced approach strengthens due process without compromising public safety or victims’ rights.”

Columbia County District Attorney Chris Liberati-Conant said, “The tweaks to the discovery law are a big win for public safety and the people of Columbia County. They uphold the core principles of justice, fairness, and transparency while bringing balance and common sense to the law. Defendants are still entitled to essentially everything in prosecutors’ files — everything they need for their defense. But these changes should end the practice of lying in wait by requiring defense counsel to confer in good faith about any discovery issues and setting a reasonable time limit on discovery motions. No longer should cases be dismissed for technical, minor violations that do not affect the defendant’s ability to prepare a defense. These changes protect crime victims while upholding defendants’ rights and ensuring swift, just, and responsible prosecution of cases. I thank the Governor for her steadfast leadership in support of these needed amendments.”

Tompkins County District Attorney Matthew Van Houten said, “It has always been critically important to provide complete disclosure of the evidence against someone accused of a crime. The changes to New York’s discovery laws continue to protect the rights of the accused while significantly reducing the chance that a case will be dismissed based upon a technicality. These changes represent a commonsense and pragmatic solution that protects the rights and safety of all New Yorkers and I am extremely pleased that this was a priority for Governor Hochul in this year’s budget.”

Ulster County District Attorney Manny Nneji said, “Discovery rules are all about achieving justice for all through a fair and transparent process. The adjustments made by Governor Hochul and our State Legislature will go a long way in eliminating the worries for victims of crime resulting from the aggressive and overzealous abuse of loopholes existing in the original discovery reforms. As a prosecutor who has dealt with these abuses firsthand in homicide cases, I am grateful to the Governor and Legislature for taking action that positively impacts victims of crime in my community.”

Westchester County District Attorney Susan Cacace said, “I am proud to stand alongside Gov. Hochul and my District Attorney colleagues in support of a Fiscal Year 2026 budget that prioritizes public safety. This is a hard-won victory, but one that was undoubtedly worth fighting for. I commend Gov. Hochul’s leadership and the efforts of everyone inside and outside government who brought these reforms over the finish line. This agreement is a win for all New Yorkers who believe crime victims deserve a meaningful chance at securing justice. Though discovery is not often in the public spotlight, it lies at the heart of the criminal justice process. For years, we operated under a status quo that yielded arbitrary disappointments and absurd results. Now, these reforms will help restore the public’s faith in our criminal justice system.”

Dutchess County District Attorney Anthony Parisi said, “As prosecutors, we are dedicated to pursuing justice fairly, ethically, and within the bounds of the law. While the 2019 discovery reforms were well-intentioned, they created significant operational challenges to our Office, and to district attorneys’ offices state-wide. We applaud Governor Hochul and our lawmakers for proposing amendments that preserve the spirit of reform while adding safeguards to prevent unjust dismissals of cases based upon minor technical errors in disclosures. These changes promote fairness by allowing proportionate remedies for procedural errors, protecting both defendants’ rights and public safety. We are happy to hear that Governor Hochul is committed to providing additional funding to district attorneys’ offices for discovery. To implement these reforms effectively, district attorneys’ offices urgently need additional resources. Investment in staffing and technology is essential to uphold these standards and ensure a just, efficient legal system.”

Village of Brightwaters Mayor and President of the Suffolk County Village Officials Association John Valdini said, “On behalf of the Villages across Suffolk County, I would like to thank Governor Hochul for standing up for the victims of crimes with the Discovery Law changes included in this year’s state budget. These necessary changes will help restore balance to our justice system, keep our communities safe and support victims throughout the legal process.”

Westhampton Beach Mayor Ralph Urban said, “Mayor Ralph Urban of Westhampton Beach strongly supports any legislation that will reduce the ‘Revolving Door’ that is currently putting a great deal of stress on our Justice and Police Departments along with putting the public at risk for encountering repeat offenders without relief.”

North Haven Village Mayor Chris Fiore said, “The recent position of the Governor’s office and the revision of the over restrictive discovery laws will proactively address recidivism and make our neighborhoods safer. There’s more to do but these are great first steps.

New York City Council Member Keith Powers said, “Safety is a top priority for all New Yorkers. While we’ve continued to see crime fall, it’s as important as ever that we give prosecutors the tools they need to bring criminals to justice. Tweaks to the state’s discovery law will hold perpetrators accountable while keeping the intention of the original 2019 reforms intact, ensuring speedy trials. I commend Governor Hochul for her work, and applaud the prosecutors who have worked so hard to achieve this agreement.”

New York City Council Member Gale A. Brewer said, “These thoughtful changes to New York’s discovery laws reflect our continued commitment to justice, fairness, and public safety. By listening to the concerns of prosecutors, advocates, and communities across the state, we’ve struck the right balance—ensuring timely access to information, protecting victims, and reinforcing our fundamental promise of due process under the law.”

Southold Town Supervisor Albert J. Krupski, Jr. said, “I am in support of New York State’s effort to change the discovery law to provide better public safety for our communities.”

Monroe County Sheriff Todd K. Baxter said, “On behalf of the Monroe County Sheriff’s Office and the communities we serve, I want to express our appreciation to Governor Hochul for her support of public safety and meaningful discovery reform. This important revision to our discovery laws helps ensure that law enforcement has the tools we need to protect our neighborhoods, while upholding the integrity of our justice system. These changes are necessary across the bail reform spectrum. We are grateful for the willingness to discuss, the willingness to improve.”

Partnership for New York City President & CEO Kathryn Wylde said, “Governor Hochul’s leadership has resulted in adjustments to the discovery law that were necessary to keep New Yorkers safe. Together with leaders Andrea Stewart Cousins and Carl Heastie, she has delivered reform that was a top priority for the city’s employers.”

Greater NY Chamber of Commerce President & CEO Mark Jaffe said, “Kathy Hochul is listening! Our members throughout NY have been frustrated by the 2019 Discovery Reforms that needed to be fixed to protect public safety. The well-meaning reforms had resulted in tens of thousands of dismissals for felony and repetitive misdemeanor cases that too often left law abiding citizens without justice. The Governor’s leadership and conviction has delivered a system that will now protect the accused without sacrificing justice for victims of crime. Again, we must thank Governor Hochul for standing up for our members and providing a safer environment for all those who live, work, and visit NY.”

Manhattan Chamber of Commerce President and CEO Jessica Walker said, “This was a very heavy lift, but the Governor got it done! This is one of those wonky issues that isn’t particularly well-known or understood but which has substantial and far-reaching impacts. It goes to the very heart of public safety and justice in New York. The Governor made a strong case, stood firm, and delivered on her promise to fix the issue. New Yorkers should all be tremendously grateful for her steady leadership.”

Staten Island Chamber of Commerce President & CEO Linda Baran said, “The adjustments to New York State’s discovery law and the investments in our justice system included in the State budget are promising steps towards improving public safety and protecting New Yorkers and business owners. The Chamber is grateful for these improvements and congratulates Governor Hochul and District Attorney McMahon for their efforts in making New York a better and safer place for businesses to thrive.”

Bronx Chamber of Commerce President Lisa Sorin said, “Retail theft continues to threaten the stability of small businesses and commercial corridors across New York City—particularly in the Bronx, where so many local entrepreneurs operate on razor-thin margins. The discovery law changes included in this year’s budget are a critical step toward restoring accountability, protecting small businesses, and making our communities safer for all residents. We commend Governor Hochul and the Legislature for advancing these thoughtful reforms and for recognizing that economic vitality and public safety must go hand in hand.”

Long Island Against Domestic Violence Executive Director Wendy Linsalata said, “LI Against Domestic Violence fully supports efforts to enhance systems that are in place to protect survivor safety and hold those that are responsible for inflicting fear and harm on their partner accountable. Changes to the discovery laws were needed to prevent the dismissal of cases and support prosecution based on the merits of the case while not infringing on the rights of offenders. These changes will provide a positive impact for survivors whom, often feel unheard and discouraged from reaching out for assistance in the future when cases are dismissed.”

Crime Victims Center Executive Director Laura A. Ahearn said, “I applaud Governor Hochul for championing these much needed changes to New York’s discovery laws. These reforms will help ensure victims on Long Island and across the state can finally seek justice based on the facts, not be denied it because of technicalities.”

SEPA Mujer Inc. Executive Director Martha Maffei said, “The strengthened discovery protections in New York State law are a vital step toward justice, ensuring that those who bravely speak up are not further endangered. For many of the immigrant women we serve, this confidentiality is not just a legal right—it’s a lifeline. These changes affirm that survivor safety and due process can coexist, and we will continue to advocate for both.”

Sanctuary for Families CEO Hon. Judy Harris Kluger said, “Governor Hochul and the Legislature have taken a vital step to ensure our justice system works for domestic violence survivors as well as defendants. For years, cases were dismissed over minor procedural errors, leaving survivors without protection and offenders without accountability. By addressing the unintended consequences of our discovery laws, these reforms will help restore survivors’ ability to seek safety and justice through the courts.”

Willow Domestic Violence Center of Greater Rochester President & CEO Meaghan de Chateauvieux said, “Governor Hochul’s proposed discovery reform is a critical step toward strengthening protections for survivors of domestic violence. By ensuring sensitive information is safeguarded and survivors are not retraumatized through the legal process, this proposal prioritizes both justice and safety. We are grateful for the Governor’s leadership and commitment to building a system that better supports those who courageously come forward.”

Brighter Tomorrows, Inc. Executive Director Dolores Kordon said, “Domestic violence victims face many obstacles in their quest for justice. Measures that create a pathway towards safety for themselves and their children is critical. Streamlining the discovery process helps to ensure fairness for victims.”

Beit Simchat Torah Senior Rabbi Emerita Rabbi Sharon Kleinbaum said, “As Senior Rabbi Emerita of Congregation Beit Simchat Torah (CBST), co-founder of the New York Jewish Agenda, and a lifelong advocate for equality, I deeply appreciate Governor Hochul’s leadership in advancing these critical changes to New York’s discovery laws. The discovery amendments that the Governor and the Legislature enacted this budget honor the spirit of the 2019 reforms—protecting the rights of the accused—while addressing unintended consequences that have harmed victims. These thoughtful amendments preserve the rights of the accused and do right by victims, ensuring our justice system works for everyone it touches.”

Garment District Alliance President Barbara Blair said, “The Garment District Alliance thanks governor Hochul and the state legislature for recognizing and addressing the serious need to modify NY’s discovery laws. GDA has been a first-hand witness to a justice system compromised by opportunism with regard to discovery. Strengthening these laws are an improvement step in restoring credibility and fairness to the judicial process.”

Times Square Alliance President Tom Harris said, “We commend Governor Hochul for standing strong and delivering reforms to discovery rules for all New Yorkers so victims will no longer be denied justice for technicalities. New York still has the most transparent criminal justice system and protects the rights of the accused while making sure that New York is safe for all.”

Chinatown Partnership Executive Director Wellington Chen said, “To see and hear directly from the domestic violence advocates and victims talk about their experience and the impacts this change in New York Discovery Laws mean to them make it clear why this is so necessary and why the inscription on the pediment says it all: “the true administration of justice is the firmest form of good government.”

Village Alliance Business Improvement District Executive Director Scott Hobbs said, “We applaud Governor Hochul and the Legislature for advancing thoughtful reforms that bring fairness and accountability back to our justice system. In our community, small businesses were left vulnerable by the well-intentioned changes to the law in 2019, but the unintended consequences led to cases being dismissed on technical grounds—leaving victims without recourse and emboldening repeat offenders. These essential changes will help ensure that crimes against Greenwich Village’s small businesses are taken seriously, that victims can seek justice, and that due process remains protected for all parties.”

Staten Island Economic Development Corporation President & CEO Mike Cusick said, “I applaud Governor Hochul for her efforts to build on record crime prevention investments while safeguarding fair trials and accountability as part of the FY26 State Budget. For our small business owners, this means a justice system that works faster, protects community safety, and supports a more stable environment to live and do business on Staten Island.”

Noir et Blanc Owner Deborah Koenigsberger said, “A done deal! As she promised, Governor Kathy Hochul got it done. So grateful to our Governor who stood her ground on behalf of small businesses like mine! BRAVA Governor! Thank you for fighting with us!”

Family Services CEO Leah Feldman said, “At Family Services, we stand with victims of crime every step of the way. We thank the Governor for treating discovery reform as a human issue. Ensuring trauma-informed and survivor centered systems protects victims’ rights and promotes justice, strengthening the ability of victims to safely participate in the legal processes meant to protect them without being retraumatized.”

Citizens Crime Commission of NYC President Richard Aborn said, “At its core, the criminal justice system must be based on a careful balance. The right of an individual who has been accused of a crime to a fair and open trial is of paramount importance. The government has no greater power than to deprive some one of their liberty. Before it can exercise that power, the government must be held to a standard that ensures a just outcome. The balance is struck when the rights of the accused are carefully juxtaposed with the right of the government to fully present its evidence within constitutional and statutory bounds. With the governor’s steady leadership, the legislature has moved New York State law closer to striking that balance. The changes in the discovery law will continue to offer those accused of crimes very high levels of protection from unjust outcomes while removing obstacles that unfairly impinged on prosecutors’ ability to prove their cases. This is a classic win-win.”

Antioch Baptist Brooklyn Pastor and President of AACEO Rev. Dr. Robert M. Waterman said, “Governor Hochul’s leadership in reforming New York’s Discovery Laws strikes a balance between protecting defendants’ rights and advancing justice for victims—strengthening public safety while ensuring fairness and accountability in our legal system.”

God’s Battalion of Prayer Pastor Rev. Al Cockfield said, “Public safety is the cornerstone of the faith community and of Black and brown communities, and we are grateful for Governor Hochul’s support in keeping us safe. These changes to discovery delicately uphold transparency while targeting repeat offenders who terrorize our city. No New Yorker should be afraid to go to church or take their child to school. Today’s announcement marks a new day in our criminal justice system.”

River of Life Church Pastor Donald Mapes said, “Thank you to Governor Hochul for spearheading the much needed reforms to the Discovery Laws. Lawyers must have the time and evidence they need to better ensure victims here in the Hudson Valley and across the State have the justice they deserve.”

Women’s Equal Justice Director Jane Manning said, “These reforms will make a real difference for survivors and will reduce the number of cases dismissed for trivial technical violations. We still have more work to do, but this bill moves us forward in a powerful way. I cannot say enough how grateful we are to the Governor for standing strong to secure these very significant reforms. Without her commitment to fighting for victims and survivors, this important bill would not have been possible.”

Coalition Against Trafficking in Women Executive Director Taina Bien-Aimé said, “We applaud Governor Hochul for her unflinching commitment to stand with survivors who have endured unspeakable violence at the hands of people who should have instead loved and protected them. The Governor’s vision of justice for victims and survivors of gender-based violence has carried the day in New York with these necessary changes to the discovery law, and is an example for the country as we continue the journey toward equality, especially for women.”

Met Council on Jewish Poverty CEO David G. Greenfield said, “As the largest provider of domestic violence services in New York’s Jewish community, Met Council has seen firsthand the heartbreak when survivors summon the courage to seek justice—only to have their cases dismissed over minor procedural errors. Governor Kathy Hochul’s reforms to the state’s discovery laws directly address this injustice by ensuring that serious cases are no longer derailed by technicalities. These changes restore faith in the legal system and offer survivors a real path to safety and accountability. We applaud Governor Hochul for her unwavering commitment to protecting victims and strengthening justice for all New Yorkers.”

Urban Resource Institute CEO Nathaniel M. Fields said, “URI is grateful to Governor Hochul and the State Legislature for their work to protect survivors of domestic and gender-based violence. The deal struck on discovery strikes the right balance and will ensure that survivors can access justice and safety through the courts. As the largest provider of transitional housing for domestic violence survivors in the country, we look forward to our continued partnership to prevent harm, increase safety and reduce recidivism by investing in violence prevention and accountability work with people who have caused harm.”

Staten Island Community Board 2 Chair Fred Giunta said, “Staten Island Community Board 2 recognizes the importance of updating New York’s Discovery Laws to ensure that survivors have the necessary tools to seek justice, while also upholding the right to a fair and timely trial. These changes are vital for fostering accountability, protecting due process, and strengthening trust in our legal system. We also appreciate Governor Hochul’s commitment to this issue by allocating $135 million in next year’s budget to support its implementation.”

Westerleigh Improvement Society President Mark Anderson said, “We are pleased to hear that Governor Kathy Hochul has signed into law, commonsense changes to the discovery requirements in pending criminal cases. These changes are reasonable not only for the prosecution, but also for the defense. These new requirements create a more productive process by relieving the undue burden of providing unnecessary evidence or omitted or incorrect evidence from causing the case to be prematurely dropped. Provisions are also welcomed, that provide a timely process for challenges of the evidence, which will create an expedited defense for those charged. We are also grateful to our elected state officials and especially the efforts towards this successful legislation by District Attorney Michael McMahon.”

Richmondtown and Clarke Avenue Civic Association President Carol Donovan said, “The 2026 Discovery Laws reforms are welcomed efforts to improve the criminal justice system, and public safety overall. We want to thank Governor Hochul for including these public safety changes in the State budget.”

Port Richmond Strong North Shore Alliance Vice Chair Mario Buonviaggio said, “The critical investments in public safety and changes in the discovery laws for the 2026 State budget will ensure perpetrators are held accountable and victims of crime are not denied justice on technicalities. We thank Governor Kathy Hochul and Staten Island District Attorney Mike McMahon for these critical changes to the discovery laws that will make our local communities safer.”

Forest Regional Residents Civic Association President Neil Anastassio said, “Our civic association supports the discovery changes in the 2026 State budget secured by Governor Hochul, in partnership with our Staten Island District Attorney, which reforms timelines and procedures in criminal trials. These reforms will assure that all evidence is allowed to be considered during trials, thus protecting the rights of those accused as well as the victims of these crimes.”

MIL OSI USA News –

May 9, 2025
MIL-OSI: Franklin Electric Announces Appointment of Jennifer L. Sherman as Chairperson; Mark Carano Elected to be a Director of the Company

Source: GlobeNewswire (MIL-OSI)

FORT WAYNE, Ind., May 08, 2025 (GLOBE NEWSWIRE) — The Board of Directors of Franklin Electric Co., Inc. (NASDAQ: FELE) has elected Jennifer L. Sherman, President and Chief Executive Officer of Federal Signal Corporation, as Chairperson effective as of May 2, 2025 for a term expiring at the 2026 Annual Meeting of Shareholders. Ms. Sherman has been a Director of the Company since 2015. Joe Ruzynski, the Company’s Chief Executive Officer, commented: “I want to congratulate Jennifer on her election as Chairperson of Franklin Electric. She knows the Company well, having served on our Board of Directors for 10 years, and I am looking forward to working closely with her to further develop and refine Franklin’s strategy.”

In addition, the Company is pleased to announce that Mark A. Carano, Vice President, Chief Financial Officer and Treasurer of SPX Technologies, Inc. has been appointed as a director of the Company effective May 7, 2025 for a term expiring at the 2027 Annual Meeting of Shareholders. Mr. Carano has served in that role since 2023. Prior thereto, Mr. Carano served as Senior Vice President, Chief Financial Officer and Treasurer of Insteel Industries, Inc., and Chief Financial Officer of Big River Steel LLC, following 14 years in investment banking.

Mr. Carano earned a Bachelor of Arts degree from Vanderbilt University and an MBA from Northwestern University’s Kellogg Business School.

Ms. Sherman, Franklin’s Chairperson of the Board, commented: “I have confidence that Mark’s extensive financial and manufacturing sector experience will provide a unique perspective to our deliberations. His investment banking and corporate deal-making experience will be invaluable as Franklin Electric continues to look for opportunities to grow through accretive acquisitions. I join my fellow directors in welcoming Mark to the Board and we look forward to benefitting from his leadership and expertise.”

About Franklin Electric
Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and energy. Recognized as a technical leader in its products and services, Franklin Electric serves customers worldwide in residential, commercial, agricultural, industrial, municipal, and fueling applications. Franklin Electric is proud to be recognized in Newsweek’s lists of America’s Most Responsible Companies 2024, Most Trustworthy Companies 2024, and Greenest Companies 2025; Best Places to Work in Indiana 2024; and America’s Climate Leaders 2024 by USA Today.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases, raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, the Company’s accounting policies, future trends, epidemics and pandemics, and other risks which are detailed in the Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2024, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements.

Contact:
Russ Fleeger
Franklin Electric Co., Inc.
260.824.2900

The MIL Network –

May 9, 2025
MIL-OSI USA: Klobuchar Presses for Bipartisan Path Forward on Safe AI Development, Highlights Need for Legislation to Give Americans Control Over Their Voice and Likeness

US Senate News:

Source: United States Senator Amy Klobuchar (D-Minn)
WATCH KLOBUCHAR’S FULL QUESTIONS HERE
WASHINGTON – At a Senate Commerce Committee hearing titled “Winning the AI Race: Strengthening U.S. Capabilities in Computing and Innovation,” U.S. Senator Amy Klobuchar (D-MN) pressed tech leaders on the future of AI development.
Testifying at the hearing were Sam Altman, Co-Founder and CEO of OpenAI; Lisa Su, CEO and Chair of Advanced Micro Devices; Michael Intrator, CEO and Co-Founder of CoreWeave; and Brad Smith, Vice Chair and President of Microsoft.
“I think David Brooks put it the best when he said, ‘I’ve found it incredibly hard to write about AI because it is literally unknowable whether this technology is leading us to heaven or hell.’ We want it to lead us to heaven, and I think we do that by making sure we have some rules of the road in place so it doesn’t get stymied or set backwards because of scams or because of use by people who want to do us harm,” said Klobuchar.
Klobuchar is a leader on efforts to put in place guardrails around the use and development of AI. Last Congress, Klobuchar and Majority Leader John Thune (R-SD) partnered on the Artificial Intelligence (AI) Research, Innovation, and Accountability Act, which would create baseline accountability for AI deployment in high-risk areas, like managing critical infrastructure. The bill would also boost transparency for AI systems that are used to decide a person’s access to health care or housing, or to decide who to hire and fire.
Last month, Klobuchar reintroduced the bipartisan Nurture Originals, Foster Art, and Keep Entertainment Safe (NO FAKES) Act with Senators Chris Coons (D-DE), Marsha Blackburn (R-TN), and Thom Tillis (R-NC). This legislation aims to protect Americans’ voice and likeness and combat the proliferation of AI deepfakes.
Klobuchar’s and Senator Ted Cruz’s (R-TX) bipartisan TAKE IT DOWN Act passed Congress last week – the bill is now headed to the President’s desk to be signed into law. The TAKE IT DOWN Act would criminalize the publication of non-consensual intimate imagery (NCII), including AI-generated NCII, and require social media and similar websites to have in place procedures to remove such content within 48 hours of notice from a victim.
A rough transcript of Klobuchar’s questions is available below. Video is available HERE for download.
Senator Klobuchar: Thank you very much, Senator Cruz. A lot of exciting things with AI, especially from a state like mine that’s home to the Mayo Clinic, with the potential to unleash scientific research. While we’ve mapped the human genome, we have rare diseases that can be solved, so there’s a lot of positive, but we all know, as you’ve all expressed, there’s challenges that we need to get at with permitting reform. I’m a big believer in that. Energy development, thank you, Mr. Smith, for mentioning this with wind and solar and the potential for more fusion and nuclear, but wind and solar, the price going down dramatically in the last few years, and to get there, we’re going to have to do a lot better.
I think David Brooks put it the best when he said, “I found it incredibly hard to write about AI because it is literally unknowable whether this technology is leading us to heaven or hell.” We want it to lead us to heaven, and I think we do that by making sure we have some rules of the road in place so it doesn’t get stymied or set backwards because of scams or because of use by people who want to do us harm.
As mentioned by Senator Cantwell, Senator Thune, and I have teamed up on legislation to set up basic guardrails for the riskiest non-defense applications of AI. Mr. Altman, do you agree that a risk-based approach to regulation is the best way to place necessary guardrails for AI without stifling innovation?
Sam Altman: I do, that makes a lot of sense to me.
Klobuchar: Okay, thanks. And did you figure that out in your attic?
Altman: No, that was a more recent discovery.
Klobuchar: Thank you very good. Just want to make sure. Our bill directs, Mr. Smith, the Commerce Department, to develop ways of educating consumers on how to safely use AI systems. Do you agree that consumers need to be more educated? This was one of your answers to your five words, so I assume you do.
Brad Smith: Yes, and I think it’s incumbent upon us as companies and across the business community to contribute to that education as well.
Klobuchar: Okay, very good. Back to you, Mr. Altman. The Americans rely on AI, as we know, increasingly, on some high-impact problems, to make them be able to trust that we need to make sure that we can trust the model outputs. The New York Times recently reported, earlier this week, that AI hallucinations, a new word to me, where models generate incorrect or misleading results, are getting worse. That’s their words. What standards or metrics does OpenAI use to evaluate the quality of its training data and model outputs for correctness?
Altman: On the whole, AI hallucinations are getting much better. We have not solved the problem entirely yet, but we’ve made pretty remarkable progress over the last few years. When we first launched ChatGPT, it would hallucinate things all the time. This idea of robustness, being sure you can trust the information, we’ve made huge progress there. We cite sources. The models have gotten much smarter. A lot of people use these systems all the time. And we were worried that if it was not 100, you know, .0% accurate, which is still a challenge with these systems, it would cause a bunch of problems. But users are smart. People understand, you know, what these systems are good at, when to use them, when not. And as that robustness increases, which it will continue to do. People will use it for more and more things, but as an industry, we’ve made pretty remarkable progress in that direction over the last couple of years.
Klobuchar: I know we’ll be watching that. Another challenge that has been, we’ve seen, and Senator Cruz worked and I worked on a bill together for quite a while, and that’s the TAKE IT DOWN Act, and that is that we are increasingly seeing internet activity where kids looking for a boyfriend or girlfriend, maybe they put out a real picture of themselves, it ends up being distributed at their school, or they somehow they someone tries to scam them from financial gain, or its AI, as we’ve increasingly seen, where It’s not even someone photos, but someone puts a fake body on there. And we’ve had about over 20 suicides in one year, of young people, because they felt like their life was ruined, because they were going to be exposed in this way. So this bill we passed, and through the Senate and the House, the First Lady supported it, and it’s headed to the President’s desk. Could you talk about how we can build models that can better detect harmful deep fakes? Mr. Smith
Smith: Yeah. I mean, we’re doing that. OpenAI is doing that, and a number of us are. And I think the goal is to first identify content that is generated by AI, and then, often, it is to identify what kind of content is harmful. And I think we’ve made a lot of strides in our ability to do both of those things. There’s a lot of work that’s going on across the private sector and in partnership with groups like NIC MEC to then collaboratively identify that kind of content. So it can be taken down. We’ve been doing this in some ways for 25 years, since the internet, and we’re going to need to do more of it.
Klobuchar: And on the issue, last question, Mr. Chair, since the last one was about your bill, I figure it’s okay. The newspapers and you testified before the Senate Judiciary Committee, Mr. Smith, about the bill Senator Kennedy and I still think that there’s an issue here about negotiating content rates. We’ve seen some action recently in Canada and other places. Can you talk about those evolving dynamics with AI developers and what’s happening here to make sure that content providers and journalists get paid for their work?
Smith: Yeah, it’s a complicated topic, but I’ll just say a couple of things. First, I think we should all want to see newspapers in some form flourish across the country, including, say, rural counties that increasingly have become news deserts, newspapers have disappeared. Second, and it’s been the issue that we discussed in the Judiciary Committee, there should be an opportunity for newspapers to get together and negotiate collectively. We’ve supported that. That will enable them to basically do better. Third, every time there’s new technology, there is a new generation of a copyright debate. That is taking place now. Some of it will probably be decided by Congress, some by the courts. A lot of it is also being addressed through collaborative action, and we should hope for all of these things. To I’ll just say, strike a balance. We want people to make a living creating content, and we want AI to advance by having access to data.
[Sen. Klobuchar followed up with an additional round of questions.]
Klobuchar: I had one more question that I wanted to ask, and it’s related to just the whole deep fake issue, just because Senator Blackburn and Senator Coons and Senator Tillis and I have worked on this really hard, and Blackburn and Coons are in the lead of the bill. But we have recently seen deep fake videos of Al Roker promoting a cure for high blood pressure, a deep fake of Brad Pitt asking for money from a hospital bed. Sony Music has worked with platforms to remove more than 75,000 songs with unauthorized deep fakes, including voices of Harry Styles Beyonce. I recently met – it’s not just famous people – there is a Grammy-nominated artist from Minnesota, talked to him about what’s going on with digital replicas. So there’s a real concern, and it kind of gets at what Senator Schatz and I were talking about earlier with the news bill. But they just wanted to make you all aware of this legislation, because there were some differences on this, and now we have gotten a coalition, including YouTube, supporting it, as well as the Recording Industry Association, Motion Picture Association, SAG AFTRA. So it’s a big deal, and I’m hoping it’s something that you will all look at, but could you just comment – I would go to you, Mr. Smith first, about protecting people from having their likenesses replicated through AI without permission, and even if you all pledge to do it, our obvious concern is that there will, maybe other companies that wouldn’t, and that’s why I think, as we look at what these guard rails are. The protection of digital people’s digital rights should be part of this.
Smith: No, I think you’re right to point to it. It has become a growing area of concern. During the presidential election last year, both campaigns, both political parties, were concerned about the potential for deep fakes to be created. We worked with both campaigns and both parties to address that. We see it being used in really ways that I would call abusive, including of celebrities and the like. I think it starts with an ability to identify when something has been created by AI and is not a genuine, say, photographic or video image. And we do find that AI is much more capable at doing that than, say, the human eye and human judgment. I think it’s right that there be certain guardrails, and some of these we can apply voluntarily. We’ve been doing that across the industry. OpenAI and Microsoft were both part of that last year. And there are certain uses that probably should be considered across the line and therefore should be unlawful. And I think that’s where the kinds of initiatives that you’re describing have a particularly important role to play.
Klobuchar: And could you look at that legislation?
Smith: Absolutely.
Klobuchar: I appreciate it. Mr. Altman, just same question, same thing.
Altman: Of course, we’d be happy to look at the legislation. I think this is a big issue, and it’s one coming quickly… I think there’s a few areas to attack it. You can talk about AI that generates content, platforms that distribute it, how takedowns work, how we educate society, and how we build in robustness to expect this is going to happen. I do not believe it will be possible to stop the generation of the content. I think open source, open weight models are a great thing on the whole, and something we need to pursue, but it does mean that there’s going to be just a lot of these models floating around that can do this, the mass distribution, I think it’s possible to put some more guardrails in place, and that seems important, I but I don’t want to neglect the sort of societal education piece. I think with every new technology, there’s some sort of, almost always some sort of new scams that come, the sooner we can get people to understand these Be on the lookout for them. Talk about this as a thing that’s coming, and then I think that’s happening. I think the better people are very quickly understanding that content can be AI-generated, and building new kinds of defenses in their own minds about it. But still, you know, if you get a call and it sounds exactly like someone you know and they’re panicked and they need help, or if you see a video like the videos you talked about this gets at us in a very deep psychological way. And I think we need to build societal resilience, because this is coming.
Klobuchar: It’s coming, but there’s got to be some ways to – you’ve got to have some to either enforce it, damages whatever. There’s just not going to be any consequences.
Altman: Absolutely, we should have all of that. Bad actors don’t always follow the laws, and so I think we need an additional shield, or whenever we can have them. But yes, we should absolutely have that.
Klobuchar: All right. Look forward to working with you on it.

MIL OSI USA News –

May 9, 2025
MIL-OSI USA: Luján Statement on Republican Resolution to Strip Internet Access from Millions of Students and Educators

US Senate News:

Source: US Senator for New Mexico Ben Ray Luján
Luján Joined Press Conference Ahead of Senate Republicans’ Vote, Highlighted Impact on New Mexico Students

Washington, D.C. – Today, U.S. Senator Ben Ray Luján (D-N.M.), Ranking Member of the Telecommunications and Media Subcommittee, issued the following statement on Senate Republicans’ vote to strip internet access from millions of students and educators:
“Across the country, the E-Rate program has helped connect countless students to the internet they need to succeed in today’s world – especially in the most rural parts of America. Under the FCC’s Wi-Fi hotspots rule, schools and libraries across America can provide Wi-Fi hotspots to students and educators to use at home.
“Senate Republicans just passed a partisan resolution that would rob New Mexico students and educators of the very tools they need to succeed. When we should be increasing connectivity, my Republican colleagues are working to limit it. If this resolution is signed into law, New Mexico schools and libraries that have applied for Wi-Fi spots through the E-Rate program will be rejected.”
Earlier today, Senator Luján joined U.S. Senate Majority Leader Chuck Schumer (D-NY), U.S. Senator Edward J. Markey (D-Mass.), and advocates at a press conference on Republican attempts to gut low-income, rural, and Tribal students’ access to Wi-Fi internet hotspots. Following the press conference, Senate Republicans voted to pass a Congressional Review Act resolution that overturns a Federal Communications Commission (FCC) rule allowing schools and libraries to use their E-Rate funds to loan Wi-Fi hotspots to students and educators.
In New Mexico, 40% of students lack access to high-speed broadband. Nationwide, studies have estimated between 9 million to 15 million U.S. students lack adequate internet access at home. Since 2020, the FCC’s E-Rate program has committed over $174 million in support to New Mexico schools and libraries.
Schools and libraries in New Mexico that have applied for Wi-Fi hotspots through the E-Rate program include:
·         David F. Cargo El Valle De Anton Chico Library
·         Farmington Municipal School District 5
·         Grants Public Library
·         Lake Valley Navajo School
·         Ojo Encino Day School
·         Taos Day School
·         Taos Municipal School District
As Ranking Member of the Commerce Subcommittee on Telecommunications and Media, Senator Luján is a strong champion for 100% broadband connectivity. In the 118th Congress, Senator Luján introduced the bipartisan Tribal Connect Act to make it easier for Tribes to secure high-speed internet access at Tribal Essential Community-Serving Institutions through the Federal Communications Commission’s (FCC) Universal Service Fund (USF) Schools and Libraries Program, or E-Rate program. In the 117th Congress, Senator Luján introduced legislation to help close the homework gap by equipping school buses with Wi-Fi technology and improving financing options for broadband deployment.

MIL OSI USA News –

May 9, 2025
MIL-OSI USA: Risch, Cantwell Introduce Bill to Expand Small Business Disaster Coordination

US Senate News:

Source: United States Senator for Idaho James E Risch

WASHINGTON – U.S. Senators Jim Risch (R-Idaho) and Maria Cantwell (D-Wash.) today introduced the Small Business Disaster Coordination Act to improve on the ground support for small businesses affected by disasters.

This bill would allow Small Business Administration (SBA) resource partners to assist businesses outside their usual service areas in an emergency. The Small Business Disaster Coordination Act would also require the SBA to work with these partners on disaster planning and response, ensuring local networks can share recovery-related information.

“From catastrophic wildfires to disastrous flooding, SBA resource partners stand ready to assist small businesses in times of emergency,” said Risch. “By expanding opportunities for these partners to help through my Small Business Disaster Coordination Act, we can ensure that the small businesses vital to our communities and economy stick around for years to come.”

“Wherever disasters strike, it has to be all-hands-on-deck,” said Cantwell. “This bill will ensure SBA partners such as Small Business Development Centers, SCORE, and Women’s Business Centers can work with local partners to assist small businesses as they recover.”

Risch and Cantwell are joined by U.S. Senators Mike Crapo (R-Idaho), Gary Peters (D-Mich.), and Michael Bennett (D-Colo.) in introducing the legislation.

The Small Business Disaster Coordination Act has received support from America’s Small Business Development Centers (SBDCs), SCORE, and the Association of Women’s Business Centers.

MIL OSI USA News –

May 9, 2025
MIL-OSI: Mountain America Credit Union Recognized as Utah’s Top SBA 7(a) Lender for Fourth Consecutive Year

Source: GlobeNewswire (MIL-OSI)

SANDY, Utah, May 08, 2025 (GLOBE NEWSWIRE) — Mountain America Credit Union has once again been recognized by the Utah District Office of the U.S. Small Business Administration (SBA) as the state’s top 7(a) lender by dollar amount for 2024. The award was presented during the SBA’s annual awards ceremony held on May 1, 2025.

A Media Snippet accompanying this announcement is available in this link.

This honor marks the fourth consecutive year that Mountain America has earned the distinction, having previously received the top 7(a) lender recognition in 2021, 2022, and 2023. The SBA 7(a) loan program is the agency’s primary vehicle for providing financial assistance to small businesses, and this award underscores Mountain America’s continued commitment to supporting the local business community.

“At Mountain America, we believe small businesses are the heartbeat of our communities. We’re honored to be recognized by the SBA once again, and this achievement reflects our ongoing dedication to helping entrepreneurs succeed,” said Sterling Nielsen, president and CEO of Mountain America Credit Union. “Our business lending team works tirelessly to provide the resources, guidance, and capital our local business owners need to grow and thrive.”

In addition to the Utah SBA district rankings, Mountain America stands as the nation’s top credit union SBA lender for total number of loans.

Through its partnership with the SBA, Mountain America has helped hundreds of small businesses gain access to the funding they need to expand operations, create jobs, and build a stronger Utah economy. The credit union continues to enhance its lending services and outreach to ensure business owners receive timely, personalized financial solutions.

Empowering Small Business Success Stories

Mountain America’s impact can be seen in the success of its business members, like Alfonso Porras, owner of Sir Walter Candy Company. Sir Walter Candy Company was recently named the 2025 Small Business of the Year and Porras will go on to compete at the national level. His journey highlights the power of small business innovation and resilience, backed by strong financial partnerships.

“It’s an incredible honor to be named the 2025 Small Business of the Year. Mountain America believed in our vision and helped us grow when we needed it most,” said Porras. “Their support has been key to our success and continues to empower us to dream bigger.”

Additionally, Mountain America played a pivotal role in the success of Sun Print Solutions, co-owned by Jennifer Pettinger and Sara Deneau. In 2024, they were honored with the Woman-Owned Small Business of the Year award. A beacon of success in a traditionally male-dominated industry, Sun Print Solutions was recognized for its business innovation, leadership, and community involvement. When they needed assistance purchasing the land their business occupied, they turned to Mountain America for support, securing a foundation for continued growth.

According to the SBA’s 2024 Small Business Profile, the 34.8 million small businesses in the United States account for more than 99.9% of all businesses. These small businesses provide jobs to 59 million people, representing 45.9% of private sector employees in the U.S.

Mountain America offers a variety of financial resources and options to small business owners. These services include expert guidance and resources to improve business productivity and streamline finances through attentive, personalized services. This is achieved by featuring a full cash management suite of products, enhanced expense management business credit card software, merchant services, and top-of-market deposit rates.

To learn more about Mountain America’s small business solutions, please visit macu.com/business.

Loans are made on approved credit.

About Mountain America Credit Union
With more than 1 million members and $20 billion in assets, Mountain America Credit Union helps its members define and achieve their financial dreams. Mountain America provides consumers and businesses with a variety of convenient, flexible products and services, as well as sound, timely advice. Members enjoy access to secure, cutting-edge mobile banking technology, over 100 branches across multiple states, and more than 50,000 surcharge-free ATMs. Mountain America—guiding you forward. Learn more at macu.com.

Contact: publicrelations@macu.com, macu.com/newsroom

The MIL Network –

May 9, 2025
MIL-OSI Economics: Winning the AI race: Strengthening U.S. capabilities in computing and innovation

Source: Microsoft

Headline: Winning the AI race: Strengthening U.S. capabilities in computing and innovation

Editor’s note: On Thursday, May 8, Microsoft Vice Chair and President Brad Smith testified before the Senate Commerce Committee. To view the proceedings, visit the committee’s website.

Winning the AI Race:
Strengthening U.S. Capabilities in Computing and Innovation

Written Testimony of Brad Smith
Vice Chair and President, Microsoft Corporation

Senate Commerce Committee

Chairman Cruz, Ranking Member Cantwell, and Members of the Committee,

Thank you for the opportunity to testify on the critical issue of artificial intelligence. I am Brad Smith, the Vice Chair and President of Microsoft Corporation.

AI has the potential to become the most useful tool for people ever invented. Like the general purpose technologies that preceded it, such as electricity, machine tools, and digital computing, AI will impact every part of our economy. It will shape not just how we work and live, but how we compete, prosper, and stay secure as a nation between now and the middle of this century.

The notice for this hearing aptly refers to an “AI race.” I would like to talk today about what is needed to win this race.

The AI race involves both technology and economics. It requires both innovation and diffusion. It is both a sprint and a marathon. The country can win a lap but lose the race if it fails to bring together all the ingredients needed for success.

It is a race that no company or country can win by itself.

To win the AI race, the United States will need to support the private sector at every layer of the AI tech stack. The nation will need to partner with American allies and friends around the world.

In my testimony today, I will focus on three strategic priorities where this Congress and the federal government will make a difference.

First, the country must win the AI innovation race. This will require massive datacenters and AI infrastructure that need federal support to expand and modernize the electrical grid on which they depend. The country must recruit and train skilled labor like electricians and pipefitters that are in short supply. We all must summon the best of our researchers at national labs and universities, supported by federal basic research programs and partnerships that have become the envy of the world. We will need to continue to excel in moving innovative ideas from academic labs into companies and new products. And we will need to support AI developers with open and broad access to public data.

Second, the nation must win the AI diffusion race. This will require that we promote broad AI adoption that will enable productivity growth across every sector of the economy. More than anything, this requires new initiatives to promote the AI skilling of the American workforce. This will involve basic AI fluency in our schools and new AI training programs in our community colleges. It will also include advanced AI education that will represent the next generation of computer science degrees, organizational skills that will be mastered in the country’s business schools, and new courses in the nation’s law schools. When combined, these will enable companies, non-profits, and government agencies alike to put AI to effective use. Governments at the federal, state, and local levels can then help accelerate this diffusion by adopting AI services to improve the effectiveness and efficiency of the services they provide to the public.

Third, the United States must export AI to American allies and friends. No company or country is so powerful that it can master the future of AI without friends. The United States and China are competing not only to innovate but to spread their respective technologies to other countries. This part of the race likely will be won by the fastest first mover. The United States needs a smart export control strategy that protects our national security while assuring other countries that they will have reliable and sustained access to critical American AI components and services. Perhaps as much as anything, this requires that we collectively sustain international trust in our products, our companies, and the country itself.

AI as a General Purpose Technology

Economists sometimes put technologies into two categories, general purpose technologies and single-purpose tools. Most things in the world are single-purpose tools, like a smoke detector or a lawn mower. They do one thing very well. But over the course of history, certain so-called general purpose technologies impact and sometimes even redefine almost every sector of the economy. Electricity is the prototypical example, because when you think about it, electricity changed the way every economic sector works.

The key to mastering the future of AI starts in part by understanding the role technology has played in the past. The past three centuries have brought the world three industrial revolutions, each driven by these general purpose technologies. First, it was iron working in the United Kingdom, starting in the 1700s. And then it was electricity and machine tools in the 1800s, when the United States overtook the United Kingdom by putting these technologies to work more broadly than any other country. And then there was the third industrial revolution during the last 50 years, driven by computer chips and software.

Without question, being a global leader in advancing a general purpose technology gives a country a major edge. But one lesson of history is that the countries that benefit the most and advance the fastest are not necessarily the countries where the technology is invented. Rather, it’s where the technology is diffused – or adopted – the most quickly and broadly. This is for good reason. If a technology improves productivity and changes every part of an economy, then the country that uses it the most broadly and quickly will benefit the most.

This both frames and defines the AI opportunity and challenge for the United States. As a nation, we need to focus both on advancing innovation and driving diffusion, both domestically and as a leading American export.

The AI Tech Stack

The key to driving both innovation and diffusion is to recognize that AI, like all general purpose technologies, is built on what we in the industry call a tech stack – a stack of technologies that are used together. This is true for every great general purpose technology. You can see this, for example, if we go back in time and think about electricity. Thomas Edison first succeeded in 1878 in using electricity to light a lightbulb. But the illumination of lights across a city quickly required the construction of power plants, the fuel to run them, the creation of an electrical grid, the standardization of circuits, and a wide range of electrical appliances beyond the lightbulb itself. In short, a tech stack for electricity.

Artificial intelligence similarly is built on an AI tech stack. Fundamentally, it is divided into three layers, infrastructure, the platform layer, and applications. You can see this illustrated below.

The infrastructure layer is massive. Microsoft is spending more than $80 billion this fiscal year on the capital investment needed for this layer, with more than half this amount being spent in the United States. This goes to buying land, investing in electricity and broadband connectivity, procuring chips like GPUs, and installing liquid cooling. These lead to the construction of datacenters – or often datacenter campuses with many buildings with potentially hundreds of thousands of computers. This infrastructure supports both the training of new AI models and their deployment, so they can be used for AI-based services around the world.

On top of this infrastructure, there is the platform layer. The heart of this layer consists of AI foundation models, including frontier models created by companies like OpenAI, as well as open source and other models from a wide variety of other firms – including Anthropic, Google, Mistral, DeepSeek, and Microsoft itself. The platform layer relies on data to train and ground models. And it includes a new generation of software-based AI platform services that are used to help build AI applications.

Ultimately, both the infrastructure and platform layers support the applications layer. These are devices and software applications that use AI to deliver better services to people. ChatGPT and Microsoft’s Copilot are both examples of AI applications. One of the amazing things about the applications layer is it’s not just companies – large or small or established or startup – that are creating AI applications. It’s everybody. It’s researchers using new AI-infused applications to change drug discovery. It’s non-profits changing the way they deliver services. It’s teachers using AI as a tool to improve the way they prepare material for a classroom. It’s governments making everything from the filing of a tax return to the renewal of a driver’s license easier and more efficient.

To build a new AI economy, it’s critical to get all three of these layers working and to get a flywheel turning across the ecosystem. It’s essential to build the infrastructure layer so people can develop and deploy the models at the platform layer. It’s essential to use the AI models so that people will build the applications on top of them. And it’s essential for customers to adopt the applications, so the market can grow, and drive increased investment to expand the infrastructure further. The process repeats itself. This is how a new economy is born.

Success Requires an Entire Ecosystem

The flywheel effect makes clear that success requires not only national progress at one layer of the tech stack, but at every layer. That is what the private sector currently is pursuing in the United States better than in any other country. And it’s what this Congress and the Executive Branch can help support with a strategy that promotes both AI innovation and diffusion up and down this stack.

National AI leadership requires not only success by a few companies, but by many. Today’s panel, involving leading firms such as OpenAI, AMD, CoreWeave, and Microsoft, reflects important slices of the new AI economy. The AI economy requires a multifaceted and integrated ecosystem that includes “Big Tech” and “Little Tech,” startups and more established firms, open source and proprietary developers, suppliers and customers, firms that create data and firms that consume it, all working together. Governments as both regulators and leading AI adopters have critical roles to play.

Commentators sometimes focus on the tensions between different participants in this tech ecosystem. These deserve attention. What’s often overlooked is that the different participants also depend on each other. And this means that the different contributors to the AI ecosystem all need to be healthy.

A large technology company like Microsoft has a unique opportunity – and responsibility – to partner with and support the participants at every level of the tech stack. We strive to advance not just innovation but an economic architecture, business models, and responsible practices that will help grow the AI market on a long-term basis. Not just for the United States, but the country’s friends and allies.

Winning the Innovation Race

Although the AI economy is being built mostly by the private sector, government policies and initiatives need to play a critical role. This starts with work needed to help fuel innovation. A few areas deserve particular attention in this hearing.

Power the growth of datacenters

Just as you can’t have reliable electricity in your home without a powerplant, you can’t have AI without datacenters and AI infrastructure. And these datacenters require a vast supply chain to construct and large amounts of electricity to operate.

America’s advanced economy relies on 50-year-old infrastructure that cannot meet the increasing electricity demands driven by AI, reshoring of manufacturing, and increased electrification. The United States will need to invest in more transmission and energy resources, onshore our supply chains, and modernize our electric grid to support forecasted increases in electrical loads. Microsoft is investing in these areas itself.

We urge the federal government to streamline the federal permitting process to accelerate growth in all these areas. The current federal permitting processes often involve multiple agencies and complex, unpredictable, multi-year reviews. This hinders progress. The federal government should take immediate steps to establish reliable, reasonable, and transparent timelines for permitting decisions. This can also be done by standardizing federal permitting processes and designating a lead agency to shepherd the permits through the process. Further, the permitting agencies should utilize AI and digital tools to improve timelines and transparency for applicants and ensure the permitting agencies have quick access to information to assist them in their review and decision-making process.

We were pleased to see President Trump’s recent Executive Order, “Updating Permitting Technology for the 21^st Century,” directing agencies to make maximum use of technology in the environmental review and permitting process. The Congress should also look to the Federal-State Modern Grid Deployment Initiative as a proven program that can be leveraged to deliver results.

This is just the start of what is needed to modernize and expand America’s energy grid. We need to recognize that new investments in the grid are just as important today as they were a century ago, when the United States led the world in private and public sector support for electricity.

Grow the AI Infrastructure workforce

Perhaps the single biggest challenge for data center expansion in the United States is a national shortage of people – including skilled electricians and pipefitters. Electricians, for example, are essential to datacenter construction, installing a complex system of electrical panels, transformers and backup power systems. We have hired thousands of electricians across the country, including in Arizona, Georgia, Virginia, Washington, and Wisconsin. But the United States doesn’t have enough electricians to fill the growing demand. We estimate that over the next decade, the United States will need to recruit and train half a million new electricians to meet the country’s growing electricity needs. We need a national strategy to ensure we meet this opportunity for American workers.

These are good jobs that will provide great long-term careers for people across the country. We recommend making existing federal education and training funds, as well as tax incentives, available to scale up these opportunities. These could include targeting current federal apprenticeship investments in regions that have identified major AI infrastructure initiatives and supporting existing training centers to quickly increase the number of registered apprenticeships focused on electricians.

We commend President Trump’s recent Executive Order, “Preparing Americans for High-Paying Skilled Trade Jobs of the Future,” for highlighting the importance of skilled trades in the building of AI infrastructure and for paving the way to meet this moment. As federal agencies work to implement the order, it will be critical that industry forecasters and union training centers work together to maximize impact.

Ultimately, we need new steps at every level of government and in communities across the country. For example, we need to do more as a nation to revitalize the industrial arts and shop classes in American high schools. This should be a priority for local school boards and state governments. Similarly, the nation’s community colleges will need to do more to support a national initiative to help train a new generation of skilled labor, including electricians and pipefitters.

Invest in AI research and development

To uphold America’s position as a global scientific leader, it is imperative to enhance federal investment in fundamental scientific research. The United States boasts a storied history of employing public-private partnerships. The decisions made decades ago to publicly fund research infrastructure and provide financial support to talented scientists and entrepreneurs paved a pathway to American technological leadership. Through federal, state and local government initiatives, investments were made in regional economies and programs, betting on the ingenuity of the American people. Notable incubators of the 20^th century – such as Bell Labs and the network of federal national laboratories – were the result of deliberate efforts to unite industry, government, and academia to propel scientific advancement. We must deploy a similar strategy today for AI and quantum technologies. Investments in these areas are critical to advancing the development of innovative technological solutions that address complex global challenges.

To outcompete nations like China, which have significantly boosted their research and development (R&D) investments, the United States must accelerate strategic investments in scientific research for future technologies. Experts predict China will continue to invest substantial resources in next-generation technologies such as AI, advanced manufacturing, clean energy, quantum computing, and semiconductors over the next decade.

Since the Second World War, America’s technological innovation has been driven by R&D based on two critical ingredients that the rest of the world has both studied and envied. The first is sustained support for basic research. While a few tech companies invest substantial sums in basic research, as we do through Microsoft Research (MSR), most world-leading basic research is pursued by academics at American universities, often based on funding from the National Science Foundation and other federal agencies. Driven by curiosity rather than a profit motive, this research often leads to unexpected but profound discoveries that are published publicly.

The second ingredient is a sustained commitment to investments in product development by companies of all sizes. The United States, more than any other country, has mastered the process of moving new ideas quickly from universities to the private sector. This success rests on healthy investments in both R and D, recognizing that basic research is often publicly funded and typically in universities, while product development is robustly and privately funded through companies. It’s the combination of the two that makes American R&D so successful.

In 2019, President Trump approved an executive order designed to strengthen America’s lead in artificial intelligence. It rightly focused on federal investments in AI research and making federal data and computing resources more accessible. Six years later, the President and Congress should expand on these efforts to support advancing America’s AI leadership. More funding for basic research at the National Science Foundation and through our universities is one good place to start.

Ensure public data is open and accessible

Data is the fuel that powers artificial intelligence. The quality, quantity, and accessibility of data directly determines the strength and sophistication of AI models. While the internet has been a major source of training data, the federal government remains one of the largest untapped sources of high-quality and high-volume data. Yet today, many of these datasets are either inaccessible or not usable for AI development.

By making government data readily available for AI training, the United States can significantly accelerate the advancement of AI capabilities, driving innovation and discovery. Opening access to these datasets would allow for the analysis of themes, patterns, and insights across broad datasets, propelling the country to the forefront of global AI development.

Importantly, accessible public data levels the playing field. It empowers not only large companies but startups, academic institutions, and nonprofits to train and refine AI models. This fosters a more competitive and inclusive AI ecosystem, where innovation is driven by ideas and ingenuity – not just proprietary data.

In comparison, countries like China and the United Kingdom are already investing heavily in their data resources, recognizing the economic and strategic value of national-scale data management. China’s comprehensive system to manage datasets as a strategic resource and the UK’s National Data Library underscore a growing global trend of treating data as a common good for economic competitiveness.

Winning the AI Diffusion Race

History teaches us that the true impact of a general-purpose technology is not measured solely by the caliber of its leading inventions, but by how quickly, widely, and effectively these are adopted across society. But the reality is that technology diffusion takes time, investment, partnerships, and sound public policy.

The history of electricity offers an important insight for AI. Once Thomas Edison proved in 1878 that electricity could power a lightbulb, why would anyone choose to sit at night in a room illuminated by a candle or kerosene? Yet tonight, almost 150 years later, more than 700 million people on the planet still live without electricity in their homes. Diffusion requires not only great technology, but sound economics.

The economics of tech diffusion start with skilling. Countries need to invest in the skills needed to use new technology, both as individuals and across organizations. It is easy to underestimate both the role that skilling plays and the need for public policy to support it. But in each industrial revolution, the country that best harnessed the leading general-purpose technology of its time was the nation that skilled its population the most quickly and broadly.

Skill the American workforce

In the new AI economy, Americans of all backgrounds will need critical AI skills to compete. To meet the totality of the skilling challenge, the country must pursue a new national goal to make AI skilling accessible and useful for every American. This will require a very broad range of partnerships and new policy ideas, spanning across geographic, organizational, economic, and political divides.

President Trump’s recent executive orders focused on AI education and the workforce provide critical steps towards a national skilling strategy for AI. The “Advancing Artificial Intelligence Education for American Youth” EO establishes a clear policy to promote AI literacy by responsibly integrating AI into education for teachers and students. By fostering this early exposure, the nation’s youth will be better positioned for AI-enabled work. Congress can also consider leveraging existing federal funding to the nation’s school districts to encourage AI learning and literacy in K-12 education.

Businesses and non-profits have important roles to play. At Microsoft, we are seeking to do our part to meet this skilling challenge. In 2025 alone, we are on a path to train 2.5 million Americans in basic AI skills. We’re partnering with the National Future Farmers of America (FFA) to train educators in every state to integrate AI into the agricultural classroom through our Farm Beats for Students program. We are partnering with the American Federation of Teachers (AFT), the largest organization representing the nation’s educators in America, to deliver a co-developed training program to 10,000 AFT members. And we’re partnering with the State of New Jersey, Princeton University, and CoreWeave on an AI Hub in New Jersey that will include support for AI education in local community colleges.

When it comes to AI skilling, the most important thing we need to do is recognize that this is a critical field that is ripe for attention, learning, partnership, and innovation. It will have a huge impact on broadening access to this technology across our economy and society. Generative AI is a new and young technology. So is our knowledge of the full extent of need in terms of AI skilling programs and support. This is a first-class priority that deserves as much attention and support as innovation in AI technology itself.

Encourage AI adoption

The federal government also will play a critical role in AI diffusion by using AI itself. There are opportunities across the government to use AI to improve the quality and efficiency of public services for citizens.

It’s encouraging to see the recent OMB publication of M-Memos focused on federal government use and procurement of AI. Both memos emphasized the importance of removing barriers to innovation, maximizing the use of domestically developed AI products, and encouraging AI leaders within the federal government to facilitate responsible AI adoption.

We’re seeing activity in the states as well. We partnered with the Texas Department of Transportation to launch a six-week pilot program aimed at boosting productivity and improving decision-making across various departments. The program saw strong results with 97 percent of participants using the AI digital assistant during the pilot, 68 percent have integrated it into their daily workflow, and participants reporting saving an average of 12 hours a week on routine tasks.

Exporting American AI

The ability to export our AI is essential to sustaining our global competitiveness and ensuring that our technological progress benefits not only our nation, but also our allies and partners around the world. Building on recent AI diplomacy efforts, the United States offers a compelling and trusted value proposition in the global technology landscape.

American tech companies, including Microsoft, are making unprecedented investments in AI infrastructure around the world. Microsoft alone is building AI infrastructure in more than forty countries, including regions where China has focused its investments. We urgently need a national policy that provides the right balance of export controls and trade support for these investments.

While the U.S. government rightly has focused on protecting sensitive AI components in secure datacenters through export controls, an even more important element of AI competition will involve a race between the United States and China to spread their respective technologies to other countries. Given the nature of technology markets and their potential network effects, this race between the United States and China for international influence likely will be won by the fastest first mover. The United States needs a smart international strategy to rapidly support American AI around the world.

This fundamental lesson emerges from the past twenty years of telecommunications equipment exports. Initially, American and European companies such as Lucent, Alcatel, Ericsson, and Nokia built innovative products that defined international standards. But as Huawei invested in innovation and China’s government subsidized sales of its products, especially across the developing world, adoption of these Chinese products outpaced the competition and became the backbone of numerous countries’ telecommunications networks. This created the technology foundation for what later became an important issue for the Trump Administration in 2020, as it grappled with the presence of Huawei’s 5G products and their implications for national and cybersecurity.

Early signs suggest the Government of China is interested in replicating its successful telecommunications strategy. China is starting to offer developing countries subsidized access to scarce chips, and it’s promising to build local AI datacenters. The Chinese wisely recognize that if a country standardizes on China’s AI platform, it likely will continue to rely on that platform in the future.

International partnerships will be critical. This is why Microsoft has partnered with entities like the UAE’s G42 and investment funds like Blackrock and MGX, aiming to raise up to $100 billion for AI infrastructure and supply chains. American tech companies and private capital markets are forging stronger ties with key nations and sovereign investors in the Middle East, surpassing previous efforts to counter Chinese subsidies in telecommunications and reflecting our commitment to innovation and cooperation. While China’s government may subsidize its technology adoption in developing regions, it will struggle to match the scale and impact of America’s private sector investments.

Pragmatic American export control policies are essential, balancing security protections with the ability to expand rapidly. Protecting national security by preventing adversaries from acquiring advanced AI technology is crucial. Rules should include qualitative standards for secure datacenter deployments to prevent chip diversion to China and ensure advanced AI services are safeguarded. We support this type of approach.

However, we have expressed our concerns about the quantitative caps imposed on GPU shipments by the interim final AI Diffusion Rule issued in January. These place key American allies and partners in a Tier Two category, imposing limits on AI datacenter expansion. This includes countries like Switzerland, Poland, Greece, Singapore, India, Indonesia, Israel, the UAE, and Saudi Arabia. Customers in these countries now fear restricted access to American AI technology – potentially benefitting China’s AI sector by turning to alternatives.

The Trump administration has an opportunity to revise the rule, eliminating quantitative caps and retaining qualitative standards. This approach ensures American allies and partners remain confident in accessing American AI products.

Ultimately, we need to recognize that countries around the world will use American AI only if they can trust it. This creates responsibilities for American companies to develop and deploy AI infrastructure and products in a responsible manner that meets local needs. And it requires that countries have confidence in sustained and uninterrupted access to critical AI components and services. The United States has long built a reputation for trustworthy technology that China has been unable to match. But this reputation, like everything that truly matters, requires constant attention and care.

Tags: AI, AI economy, artificial intelligence, Brad Smith, Congress, Innovation, Innovation Featured, Technology

MIL OSI Economics –

May 9, 2025
MIL-OSI United Kingdom: Edinburgh appoints visitor levy forum chair

Source: Scotland – City of Edinburgh

Julie Ashworth will lead the new forum to advise the Council on all matters related to establishing Edinburgh’s Visitor Levy and its ongoing performance.

A recruitment panel, comprising senior representatives of the City of Edinburgh Council, Edinburgh Chamber of Commerce, Visit Scotland and Edinburgh Association of Community Councils, identified the experienced executive as the ideal candidate to establish and lead the Visitor Levy Forum.

Councillors formally agreed to the appointment at the full Council meeting on Thursday 8 May.

Julie brings to the role considerable experience in complex stakeholder management and financial planning, and is a skilled networker with a strong track record of building relationships across multiple industry sectors, local and national governments.

She is founder and CEO of BroadReach Leadership Consultancy, whose clients span retail, technology, travel, education and the arts.

An Edinburgh resident, she currently serves as a Public Interest Board Trustee for the Institute of Chartered Accountants Scotland, is Chair of the Board for the University of Aberdeen and has been a longstanding member of the Institute of Directors, where she is Chair of the Scotland Board. She also contributes on a cross-party working group at the Scottish Parliament and is a member of the Scottish Government’s New Deal for Business Group.

She has previously held executive and advisory positions with leading organisations operating in the retail sector including Marks and Spencer, Liberty of London, IBM, the Spirit Group and Clear Returns.

Council Leader Jane Meagher said:

“I’m delighted that Julie has been appointed as Chair of the Visitor Levy Forum. This independent role will be important in helping to deliver the scheme in a way that benefits everyone living, working in and visiting Edinburgh, making sure big decisions are taken in a way that supports the whole city.

“Julie’s proven ability to analyse important information and make sound decisions in high profile organisations will be a great asset to this new position. We believe her clear, determined and approachable style mean she is the right person to establish and lead a well-balanced forum where all views are given fair representation.

“The levy is a once in a lifetime opportunity to invest in the future of our city, and with Julie onboard as forum chair, we are well placed to deliver a scheme that will enhance and sustain the things that make Edinburgh such a great place to live in and visit.”

Commenting on her appointment, Julie Ashworth said:

“I am excited to get to work with establishing the forum and encouraging a broad range of views from businesses and communities across the city. We are entering a busy period as we build up to the implementation of the levy, and getting underway with the forum is a big opportunity for all of us.

“As a long-time resident of the city, I am passionate about Edinburgh’s heritage and future success. I strongly believe the forum can play a very important role in helping the levy to be delivered in a way that is fair, just and brings benefits to everyone in the years to come.”

Julie’s first task will be to establish the Edinburgh Visitor Levy Forum in line with the duties set out in the Visitor Levy (Scotland) Act, with the first meeting taking place before 24 July 2025.

The forum’s purpose is to discuss and advise the Council on matters to do with the levy, including advising the Council on any recommended modifications to the scheme at the formal three-year review point.

The forum will also be consulted on how the income from the levy will be invested and invited to review and comment on the performance of the scheme and investments once in place. Decisions on amendments to the scheme and how the proceeds from the levy are invested will ultimately be taken by councillors.

It will comprise an equal number of representatives from the community and businesses operating in the city’s visitor economy, and aim for at least 40 per cent of the representatives to be women. Council officers responsible for the investment streams and officers from the Council’s Programme Management Office will attend forum meetings and may make recommendations to the forum, but will not be members of the forum itself.

MIL OSI United Kingdom –

May 9, 2025
MIL-OSI USA: LEADER JEFFRIES: “THE HOUSE REPUBLICAN MAJORITY HAS BEEN A COMPLETE AND UTTER FAILURE”

Source: United States House of Representatives – Congressman Hakeem Jeffries (8th District of New York)

Washington, D.C. – Today, Democratic Leader Hakeem Jeffries held a press conference where he emphasized that while Rubber Stamp Republicans try to jam through their reckless budget, House Democrats will continue to push back against the scheme to enact the largest cut to Medicaid and food assistance in American history.

LEADER JEFFRIES: Good morning, everyone. The economy is collapsing. The Trump tariffs are raising costs on hardworking American taxpayers. Small businesses are closing. Businesses and corporations are unable to invest and hire people. And Republicans are driving us toward a painful recession. Donald Trump and House Republicans promised the American people last year that they were going to lower costs on day one. But costs aren’t going down, they’re going up. Inflation is going up, and life is getting more expensive in the United States of America. The House Republican majority has been a complete and utter failure. They’ve now had the opportunity to govern for 125 days and we haven’t seen a single bill that actually has moved to the Floor that is designed to make life more affordable.

Instead, what House Republicans are doing is trying to jam this extreme budget down the throats of the American people that would visit the largest cut to healthcare in American history, and at the same time take food out of the mouths of children, veterans and families in order to pay for a massive tax cut for their billionaire donors like Elon Musk. It’s totally and completely unacceptable. And House Democrats will continue to strongly oppose it today, tomorrow, this week, next week and as long as it takes until we can bury this extreme budget in the ground, never to rise again.

Full press conference can be watched here.

###

MIL OSI USA News –

May 9, 2025

MIL-OSI: Bigbank AS Results for April 2025

Source: GlobeNewswire (MIL-OSI)

Bigbank’s loan portfolio grew by 55 million euros in April, representing the highest monthly increase so far this year. The growth continues to be driven by key products: the corporate loan portfolio increased by 26 million euros, and the home loan portfolio increased by 20 million euros. The consumer loan portfolio grew by 9 million euros.

The deposit portfolio decreased by a total of 12 million euros in April. The larger liquidity buffer accumulated in the first quarter enabled continued optimisation of deposit pricing across all Bigbank markets during April. As a result, the volume of term deposits declined by 50 million euros, while the volume of savings deposits increased by 37 million euros. As the interest rates on term and savings deposits have decreased, customers are increasingly opting for the more flexible savings deposit product when placing new deposits.

Net interest income at the end of April was 0.6 million euros, or 2%, lower year-on-year. On the interest income side, the growing loan portfolio has so far been sufficient to offset the lower income resulting from the decline in Euribor. However, interest expenses have grown at a slightly faster pace, as the drop in deposit interest rates has lagged behind the decline in Euribor and the deposit portfolio has expanded.

One of the most positive developments in April was that the net allowance for expected credit losses remained significantly lower than in the same period last year. This is mainly due to improved repayment behaviour in the consumer loan portfolios of the Baltic countries. Despite the significant growth in the loan portfolio, the net allowance for expected credit losses and provision expenses decreased by a total of 4.2 million euros, or 42%, in the first four months of the year compared to the same period in 2024.

Net profit in April amounted to 3.0 million euros – a solid result considering the continued decline in interest rates. It is also encouraging that the lower net interest income compared to last year has been compensated by lower expected credit losses, reduced administrative expenses, and growing net fee income. One of the key contributors to the strong performance is Bigbank’s dedicated and expanding team. At the same time, the growing team has increased salary expenses by 1.3 million euros over the four-month period. A negative development has been the 1.1 million euro increase in income tax expenses over the same period, mainly due to higher income tax rates introduced in Estonia and Lithuania at the beginning of 2025.

Bigbank’s key financial indicators for April 2025:

Customer deposits and loans received increased by 358 million euros over the year, reaching 2.55 billion euros (+16%).
Loans to customers grew by 573 million euros year-on-year, reaching 2.37 billion euros (+32%).
Net interest income totalled 8.4 million euros in April; the four-month total reached 34.0 million euros. Compared to the same period last year, net interest income declined by 0.6 million euros (–2%).
Net allowance for expected credit losses and provision expenses totalled 5.8 million euros in the first four months of the year, down 4.2 million euros or 42% year-on-year.
Net profit in April was 3.0 million euros. Cumulative profit for the first four months amounted to 12.9 million euros, an increase of 3.6 million euros or 38% compared to the same period in 2024.
Return on equity in April was 13.4%.

Income statement, in thousands of euros	Apr 2025	YTD25	YTD24	Difference YoY
Total net operating income, incl.	9,082	38,236	37,598	638	+2%
Net interest income	8,384	33,958	34,592	-634	-2%
Net fee and commission income	853	3,376	2,901	475	+16%
Total expenses, incl.	-4,131	-16,485	-16,421	-64	+0%
Salaries and associated charges	-2,517	-9,993	-8,734	-1,259	+14%
Administrative expenses	-898	-3,650	-4,943	1,293	-26%
Profit before loss allowances	4,951	21,751	21,177	574	+3%
Net allowance for expected credit losses and provision expenses	-1,178	-5,813	-9,965	4,152	-42%
Income tax expense	-737	-3,038	-1,892	-1,146	+61%
Profit for the period from continuing operations	3,036	12,900	9,320	3,580	+38%
Profit or loss before tax from discounted operations	0	0	29	-29
Profit for the period	3,036	12,900	9,349	3,551	+38%


Business volumes, in thousands of euros	Apr 2025	YTD25	YTD24	Difference YoY
Customer deposits and loans received	2,548,170	2,548,170	2,190,221	357,949	+16%
Loans to customers	2,367,531	2,367,531	1,794,458	573,073	+32%

Key figures	Apr 2025	YTD25	YTD24	Difference YoY
ROE	13.4%	14.2%	11.4%	+2.8pp
Cost / income ratio (C/I)	45.5%	43.1%	43.7%	-0.6pp
Net promoter score (NPS)	59	58	58	+0

Compared to the financial results published for April 2024, the net interest income and the net allowance for expected credit losses for the prior period have been adjusted, both reduced by 0.6 million euros. The adjustment is related to an identified error, where interest income from impaired financial assets had been accrued on the gross exposure rather than on a net basis. This correction does not impact the net profit for April 2024.

Bigbank AS (www.bigbank.eu), with over 30 years of operating history, is a commercial bank owned by Estonian capital. As of 30 April 2025, the bank’s total assets amounted to 2.9 billion euros, with equity of 274 million euros. Operating in nine countries, the bank serves more than 170,000 active customers and employs over 550 people. The credit rating agency Moody’s has assigned Bigbank a long-term bank deposit rating of Ba1, along with a baseline credit assessment (BCA) and an adjusted BCA of Ba2.

Argo Kiltsmann
Member of the Management Board
Telephone: +372 5393 0833
Email: argo.kiltsmann@bigbank.ee
www.bigbank.ee

The MIL Network –

May 9, 2025

MIL-OSI: Applied Releases Commercial Lines Premium Rate Index Findings for Q1 2025
Source: GlobeNewswire (MIL-OSI)

Toronto, ON, May 08, 2025 (GLOBE NEWSWIRE) — Applied Systems® today announced the first quarter 2025 results of the Applied Commercial Index™, the Canadian insurance industry’s premium rate index. Overall, the magnitude of rate increases was down across all lines relative to average premium renewals in the same quarter last year with 3.85% in Q1 2025 down from 6.14% in Q1 2024. All lines of business saw decreases compared to the same quarter last year.

Quarter over quarter, Q1 2025 results showed average renewal rate change decreased across all lines of the most commonly placed Commercial Lines categories, including Real Estate Property, Business and Professional Services, Construction, Hospitality Services, and Retail Services.

Significant findings include:
- Business and Professional Services: Q1 2025 premium renewal rate change average was 3.99%, down from the Q4 2024 average of 5.48%.
- Construction, Erection, and Installation Services: Premium renewal rate change average was 3.85% for the quarter, down from the Q4 2024 average of 4.78%.
- Hospitality Services: Q1 2025 premium renewal rate change average was 3.08%, down from the Q4 2024 average of 3.79%.
- Real Estate Property: Premium renewal rate change average was 3.58% for the quarter, down from the Q4 2024 average of 4.59%.
- Retail Services: Premium renewal rate change averaged 4.57%, down relative to the Q4 2024 average of 6.84%.
“This quarter’s average premium renewal rate change across all industries have somewhat dissipated, limiting the tailwind they provided over the recent period and therefore putting a greater focus on margins,” said Steve Whitelaw, SVP and general manager, Canada, Applied Systems. “As brokers begin their renewal conversations, the Applied Commercial Index will help them focus on specific lines that will foster more profitable growth opportunities.”

Access the complete quarterly report here.

# # #

Applied Commercial Index is a trademark of Applied Systems, Inc. All data is fully anonymized when aggregating and analyzing the Applied Commercial Index.

About Applied Systems
Applied Systems is the leading global provider of cloud-based software that powers the business of insurance. Recognized as a pioneer in insurance automation and the innovation leader, Applied is the world’s largest provider of agency and brokerage management systems, serving customers throughout the United States, Canada, the Republic of Ireland, and the United Kingdom. By automating the insurance lifecycle, Applied’s people and products enable millions of people around the world to safeguard and protect what matters most.

The MIL Network –
May 9, 2025
MIL-OSI: U.S. Hospitals and Health Systems Hit with Long-running Increases in Medical Supply and Drug Expenses, Bad Debt and Charity Care, According to New Strata Report

Source: GlobeNewswire (MIL-OSI)

CHICAGO, May 08, 2025 (GLOBE NEWSWIRE) — Hospitals and health systems nationwide saw notable growth in medical supply and drug expenses and increases in bad debt and charity care in recent years — all factors that could be exacerbated in the coming months as the healthcare industry feels the effects of federal tariffs and other policy changes, according to a new report from Strata Decision Technology.

Non-labor expenses have long been on the rise for U.S. hospitals, with total non-labor expense increasing year-over-year (YOY) each month for more than three years, according to Strata data. Medical supply and drug expenses have steadily grown as a share of overall expenses. Medical supply expense as a percent of total expense increased from 7.2% in the first quarter of 2023 to 8.0% in Q1 of this year. Drug expense as a percent of total expense rose from 4.1% in Q1 2023 to 4.4% in Q1 2025.

“Hospitals and health systems have battled persistent expense increases for years,” said Steve Wasson, Strata’s chief data and intelligence officer. “Now — with more than two-thirds of medical devices used in the U.S. manufactured outside of the country — tariffs and other federal policy changes could further drive up costs for pharmaceuticals, syringes, personal protective equipment, and other medical supplies and devices that healthcare professionals rely on every day to care for patients.”

U.S. health systems also saw growth in charity and bad debt deductions in recent years. The median charity deduction for health systems increased 5.4% from Q1 2024 to Q1 2025, and jumped 21.4% in Q1 2025 versus Q1 2023. The median health system bad debt deduction increased 9.2% from Q1 2024 to Q1 2025 and 16.9% versus Q1 2023.

For hospitals, charity deductions for the first quarter rose 7.6% from Q1 2024 and jumped 24.5% versus Q1 2023. Bad debt deductions at hospitals decreased slightly at 0.9% from Q1 2024 to Q1 2025, but rose 15.3% versus two years ago.

Possible changes to Medicaid being discussed in Congress could contribute to further increases in bad debt and charity care. As of Q1 2025, the data show that Medicaid accounts for 12% or more of revenue for most U.S. hospitals, depending on the region. Hospitals in the Midwest have the lowest share of Medicaid revenue at 11.1%, while hospitals in the West have the largest at 14.4%.

About the Data
The report uses data from Strata’s StrataSphere^® and Comparative Analytics database. Comparative Analytics offers access to near real-time data drawn from more than 135,000 physicians from over 10,000 practices and 139 specialty categories, and from 500+ unique departments across more than 1,600 hospitals. Comparative Analytics also provides data and comparisons specific to a single organization for visibility into how their market is evolving. StrataSphere is a unique and comprehensive data-sharing platform that helps providers leverage a network that represents approximately 25% of all provider spend in U.S. healthcare. This report incorporates data from more than 600 hospitals with StrataJazz^® Decision Support.

About Strata Decision Technology
Strata Decision Technology provides a cloud-based platform for software and service solutions to help organizations better analyze, plan, and perform in support of their missions. With the combination of Syntellis Performance Solutions’ Axiom solutions, more than 2,300 organizations rely on Strata to provide their financial analytics, planning, and performance solutions. Strata has been named the market leader for Business Decision Support for 18 consecutive years. By uniting these two industry leaders, Strata continues to deliver market-leading solutions and world-class service, with an increased focus on accelerating innovation. For more information, please go to www.stratadecision.com.

Strata Social Networks
LinkedIn: Strata Decision Technology
Media contact:
Sally Brown, Inkhouse
strata@inkhouse.com

The MIL Network –

May 9, 2025
MIL-OSI USA: May 08, 2025 Mullin, Schakowsky & Blumenthal Call on Trump Administration to Reserve Plans to Eliminate Consumer Product Safety Commission [1] H.R. Rep. No. 92-1153, at 25 (1972) (“The Commission’s decisions under this legislation will necessarily involve a careful meld of safety and economic considerations. This delicate balance, the committee believes, should be struck in a setting as far removed as… Read More

Source: United States House of Representatives – Representative Kevin Mullin California (15th District)

“Without the dedicated oversight of the CPSC, American families, especially children, will be left vulnerable in their own homes.”

[WASHINGTON, D.C.] – U.S. Senator Richard Blumenthal (D-CT) and U.S. Representatives Jan Schakowsky (D-IL) and Kevin Mullin (D-CA) today led 21 members of the Senate and 27 members of the House in calling on Office of Management and Budget Director Russell Vought to reverse plans to eliminate the bipartisan, independent Consumer Product Safety Commission (CPSC). The CPSC is the only government entity tasked with developing and enforcing product safety standards, facilitating recalls of unsafe products, and educating consumers and businesses about product hazards and best practices. The proposal to absorb some of CPSC’s core functions into a nonexistent division within the Department of Health and Human Services (HHS), as HHS’ budget is being cut, is unrealistic and threatens public safety.

“Since its inception, the CPSC has played a vital role safeguarding American families, and in particular infants, children, and older Americans. Thanks to the CPSC’s critical work, residential fires and fire-related deaths have decreased by over 40 percent. Crib deaths and child poisonings have dropped by 80 percent. The Commission’s work continues today, identifying emerging threats and protecting Americans from dangerous and banned imported products,” the Members wrote.

The Members continued, “With the rapid growth of e-commerce and imported consumer products, especially from countries with less stringent safety regulations, CPSC plays a critical role to prevent unsafe and counterfeit goods from entering the U.S. market unchecked.”

“We strongly oppose any attempt to eliminate, defund, or weaken the CPSC and demand that you immediately roll back any efforts to dissolve the agency. Americans rightfully expect that the products they bring into their home are safe, and only the CPSC has the authority and expertise to ensure that expectation is met,” the Members concluded.

Blumenthal, Schakowsky, and Mullin’s letter comes as more than 150 consumer protection and trade groups warned that eliminating the CPSC would undermine product safety, weaken enforcement actions, consumer education campaigns, and data collection initiatives that protect Americans.

U.S. Senators Amby Klobuchar (D-MN), Tammy Duckworth (D-IL), Kirsten Gillibrand (D-NY), Jeff Merkley (D-OR), Dick Durbin (D-IL), Edward J. Markey (D-MA), Tammy Baldwin (D-MN), Chris Van Hollen (D-MD), Jacky Rosen (D-NV), Tim Kaine (D-VA), Ben Ray Luján (D-NM), Bernie Sanders (I-VT), Peter Welch (D-VT), Angus King (I-ME), Brian Schatz (D-HI), Ron Wyden (D-WA), Mazie Hirono (D-HI), Jack Reed (D-RI), Cory Booker (D-NJ), Elizabeth Warren (D-MA), and Martin Heinrich (D-MN) signed onto the letter.

U.S. Representatives Eleanor Holmes Norton (D-DC), Kim Schrier, M.D. (D-WA), Julia Brownley (D-CA), Al Green (D-TX), Danny Davis (D-IL), Frederica S. Wilson (D-FL), Emanuel Cleaver, II (D-MO), Paul D. Tonko (D-NY), Jonathan L. Jackson (D-IL), Delia C. Ramirez (D-IL), Rick Larson (D-CT), Marcy Kaptur (D-OH), Pramila Jayapal (D-WA), Lori Trahan (D-MA), Kathy Castor (D-FL), Jamie Raskin (D-MD), Ritchie Torres (D-NY), Diana DeGette (D-CO), Rashida Talib (D-MI), Troy A. Carter, Sr. (D-LA), Darren Soto (D-FL), Robin L. Kelly (D-IL), Nydia M. Velázquez (D-NY), Suhas Subramanyam (D-VA), André Carson (D-IN), Becca Balint (D-WA), and J. Luis Correa (D-CA) also joined the letter.

The full text of Blumenthal, Schakowsky, and Mullin’s letter is available here and below.

Dear Director Vought:

            We write today on behalf of American consumers to express outrage that the Administration’s draft budget includes plans to eliminate the bipartisan, independent Consumer Product Safety Commission (CSPC) and absorb some of its functions and staff into a currently nonexistent staff division within the Department of Health and Human Services (HHS). The CPSC develops and enforces commonsense product safety standards, facilitates recalls of unsafe products, and educates consumers and businesses on product hazards and best practices. Eliminating the agency will put the physical safety of all Americans at risk.

Congress created the CPSC almost 50 years ago to protect Americans from unreasonable risks of injury or death associated with consumer products. The Administration does not have the authority to eliminate a Commission established by Congress, as doing so would exceed its constitutional powers and undermine the principles of the legislative process.

            The establishment of the CPSC as an independent five-member commission reflected the House Interstate and Foreign Commerce Committee’s understanding that product safety should be “as far removed as possible from partisan influence.”^[1] Since its inception, the CPSC has played a vital role safeguarding American families, and in particular infants, children, and older Americans. Thanks to the CPSC’s critical work, residential fires and fire-related deaths have decreased by over 40 percent.^[2] Crib deaths and child poisonings have dropped by 80 percent.^[3] The Commission’s work continues today, identifying emerging threats and protecting Americans from dangerous and banned imported products. With the rapid growth of e-commerce and imported consumer products, especially from countries with less stringent safety regulations, CPSC plays a critical role to prevent unsafe and counterfeit goods from entering the U.S. market unchecked. These protections for American families have led to a comprehensive set of product safety standards, recall processes, data collection, and public education, which cannot be transferred to a new agency by executive action.

            HHS lacks the statutory authority to carry out the CPSC’s critical functions. Moreover, HHS already carries a broad mandate, overseeing food and drug regulation, communicable disease prevention, public health emergency preparation and responses, medical research, and the administration of Medicare, Medicaid, and the Children’s Health Insurance Program. Yet, your Administration’s proposed budget plans would reduce HHS’s discretionary budget by one-third and eliminate 20,000 staff positions. Adding product safety to HHS’s already vast and demanding mandate, all while slashing the department’s budget and staff, would jeopardize the lives and physical safety of American families.

            We strongly oppose any attempt to eliminate, defund, or weaken the CPSC and demand that you immediately roll back any efforts to dissolve the agency. Americans rightfully expect that the products they bring into their home are safe, and only the CPSC has the authority and expertise to ensure that expectation is met. The CPSC’s continued existence is essential to protecting Americans from preventable injury and death. Without the dedicated oversight of the CPSC, American families, especially children, will be left vulnerable in their own homes.

MIL OSI USA News –

May 9, 2025
MIL-OSI New Zealand: Space, advanced aviation boost economy by $2.5b

Source: NZ Music Month takes to the streets

The space and advanced aviation sectors added more than $2.5 billion to the New Zealand economy last year, a report released today by Space Minister Judith Collins shows.

The Deloitte/Space TrailBlazer Innovation for Growth, Charting the Space and Advanced Aviation Sectors report showed the space sector contributed $2.47b to the economy in the 2023-24 financial year.

The advanced aviation sector, which includes emerging aviation technologies and overlaps with the space sector, contributed $480 million.

“The report showed our fast-growing space sector with revenue increasing by 53 percent in the five years to 2024 – a faster rate than the world’s space economy,” Ms Collins says.

“This is a success story we should be proud as it shows the sector is creating jobs for New Zealanders, attracting billions of dollars of investment into New Zealand, and driving innovation and scientific advancement.

“We want to keep up the momentum, which is why we set the ambitious target of doubling the size of New Zealand’s space and advanced aviation sectors by 2030.”

The space sector’s year-on-year revenue growth of nearly 9 percent since 2019 was largely driven by increases in space manufacturing, operations and applications. The report, commissioned by the Ministry of Business, Innovation and Employment, also found New Zealand’s space sector is commercially led and homegrown, with 78 percent of survey respondents saying more than half their workforce is local.

“As the sector grows, so does the number of people and communities it supports. The space sector now supports 17,000 jobs in New Zealand’s economy, up from 12,000 in 2019,” Ms Collins says.

“Whether it’s a research lab, a drone manufacturer, or a rocket launch pad, there are some amazing companies and an immense depth of talent working in the space and advanced aviation sectors throughout the country.

“Last year the Government signalled our intention to support the sector through a light-touch regulatory approach. We have natural advantages of clear skies and geography, and we want to give innovators the flexibility to test their ideas and continue driving growth.”

“It’s also important we encourage the next generation to consider careers in the space and advanced aviation sectors.

“Applications for the Prime Minister’s Space Prizes open on 12 May. These prizes recognise and encourage innovative expertise for professionals and students, and I’d encourage people to apply,” Ms Collins says.

The Innovation for Growth, Charting the Space and Advanced Aviation sectors report is available on the MBIE website.

Note to Editors

The attached infographic (PDF) shows high-level information on the space and advanced aviation sectors from the report.

MIL OSI New Zealand News –

May 9, 2025
MIL-OSI: TiiCKER CEO Walter Ward to Join Michigan’s Leading Startup Founders on Stage at the 2025 Mackinac Policy Conference

Source: GlobeNewswire (MIL-OSI)

GRAND RAPIDS, Mich., May 08, 2025 (GLOBE NEWSWIRE) — TiiCKER, the world’s first shareholder engagement and retail investor perks platform, announced today that its CEO and co-founder, Walter Ward III, will join an elite panel of entrepreneurs at the 2025 Mackinac Policy Conference to explore how high-growth startups thrive in Michigan.

Titled “How High-Growth Startups Make It in Michigan,” the panel will take place on Wednesday, May 29 from 1:30 to 2:10 p.m. at the Grand Hotel Theatre on Mackinac Island, Michigan. Ward will appear alongside Dr. Anthony Chang (Founder and CEO, BAMF Health), Greg Schwartz (Co-founder, StockX), and Andrea Wallace (CEO, Opnr), in a conversation moderated by Gary Torgow, Chairman of Huntington National Bank ($HBAN).

The discussion will focus on the diverse and growing ecosystem that’s helping startups in Michigan scale, from financial and human capital to innovation hubs and public-private partnerships. Each panelist will share their personal entrepreneurial journey and insights on what it takes to succeed and scale in the Great Lakes State. TiiCKER was a 2023 recipient of a $510,000 talent incentive grant from the Michigan Economic Development Corporation (MEDC) aimed at supporting recruiting engineers and fintech talent to the Grand Rapids-based startup.

“As we continue to grow TiiCKER in Michigan – where I was born and raised – I’m excited to highlight how this state is becoming a global model for startup success,” said Ward. “From fintech to healthtech and creative industries, we’re building something special here, and I couldn’t be prouder to represent the Michigan startup community on this national stage.”

TiiCKER’s inclusion in this prestigious panel reflects the company’s rapid ascent as a disruptive force in fintech and retail investor engagement, including its work with Michigan public companies offering shareholder perks like Hagerty ($HGTY), Whirlpool ($WHR) and Wolverine Worldwide ($WWW). The platform enables publicly traded companies to connect to and reward their verified retail shareholders, creating new channels for brand engagement and customer loyalty. And it provides a pathway for retail investors to experience the benefits of being a shareholder in the companies and brands they love.

For more information and ongoing updates about the 2025 Mackinac Policy Conference, visit www.detroitchamber.com/mpc.

For more information, visit www.TiiCKER.com.

About TiiCKER
Fintech TiiCKER invented verified stock perks and direct-to-shareholder marketing through its web-based and mobile app software platforms, providing consumers and investors with a revolutionary way to engage with the brands they own and love. For America’s more than 100 million retail investors and fans of publicly traded brands, TiiCKER provides unique access to shareholder perks and discounts, custom articles and content, CEO and company-access events for retail investors, and TiiCKER Perks from marketing partners.

For its brands and public company partners, TiiCKER creates and markets measurable Shareholder Loyalty Programs that drive more spending, investing and voting among their consumers and verified owners, maximizing Shareholder Lifetime Value™. As a result of its innovation and leadership in direct-to-shareholder marketing, TiiCKER was named: Best Shareholder Engagement Platform (2024 Benzinga Global Fintech Awards); Most Innovative Tech Companies of the Year at the 2024 American Business Awards®; Top MarTech Startup of 2023 by MarTech Outlook; and won the 2023 cohort for the AWS (Amazon Web Services) Fintech Accelerator program.

Media Contact:
Sarah Smith
ssmith@tiicker.com

The MIL Network –

May 9, 2025
MIL-OSI: BTCC Exchange Brings Crypto’s Elite Influencers Together For Exclusive TOKEN2049 Yacht Experience

Source: GlobeNewswire (MIL-OSI)

A Media Snippet accompanying this announcement is available in this link.

VILNIUS, Lithuania, May 08, 2025 (GLOBE NEWSWIRE) — BTCC, the world’s longest-serving crypto exchange, hosted an exclusive VIP yacht party that brought together cryptocurrency’s most prominent voices following TOKEN2049 Dubai on May 2, 2025. The luxurious event, set against the backdrop of Dubai’s coastline on the Arabian Sea, created a premier networking space where the industry’s leading content creators could connect in a more relaxed setting.

The exclusive after-party attracted the crypto world’s most influential voices, with top-tier Key Opinion Leaders (KOLs) who collectively reach millions of followers across various social media platforms. Guests enjoyed perfect Dubai weather while cruising at sea, with live DJ music creating an energetic atmosphere that encouraged open conversation and networking.

“Our goal is to create moments that matter—beyond charts and screens,” said Erik Gjergji, Head of Business Development at BTCC. “This yacht party isn’t just a celebration; it’s about turning online connections into real relationships and gaining insights that give us a competitive edge.”

The exclusive event featured thrilling jetski sessions along Dubai’s coastline, live DJ performances, and exquisite Japanese cuisine prepared by Mr. Nishimura Yukou, the Head Chef from Umi Kei at Jumeirah Marsa Al Arab, one of Dubai’s premier dining destinations. As evening approached, guests enjoyed a scenic cruise showcasing Dubai’s iconic skyline at dusk, adding a magical backdrop to the networking experience.

Unlike traditional conference settings, the yacht party provided a relaxed atmosphere where influential voices in the crypto space could engage in candid conversations about market trends, technological innovations, and the future of cryptocurrencies.

BTCC Exchange has consistently demonstrated its commitment to fostering community connections through events alongside major industry conferences. By bringing together content creators in distinctive settings like yacht parties and desert safari tours, the exchange positions itself as a trusted name in the cryptocurrency space where meaningful dialogues flourish.

As TOKEN2049 Dubai concludes, the relationships forged during these immersive experiences and on the conference floor will continue to thrive online, building trust, creating opportunities to collaborate, and ultimately enhancing the exchange’s services in meaningful ways.

About BTCC Exchange

Founded in 2011, BTCC is one of the world’s longest-serving cryptocurrency exchanges, offering secure and user-friendly trading services to millions of users globally. With a commitment to security, innovation, and community building, BTCC continues to be a trusted platform in the evolving cryptocurrency landscape.

Website: https://www.btcc.com/en-US

X: https://x.com/BTCCexchange

Contact: press@btcc.com

The MIL Network –

May 9, 2025
MIL-OSI United Kingdom: Landmark Economic Deal with US saves thousands of jobs
Source: United Kingdom – Executive Government & Departments

Press release

Landmark Economic Deal with US saves thousands of jobs

Today the UK and US has agreed a landmark economic deal which will save thousands of jobs for British carmakers and steel industry
Britain secures the first US trade deal protecting British business and British jobs, the second landmark deal in Britain’s national interest in a matter of days following the India deal

Prime Minister delivers on his promise to save UK steel and British car makers – saving thousands of jobs across the country

US tariffs on automotives immediately slashed from 27.5%, with steel and aluminium reduced to zero

Unprecedented market access for British farmers with protections on food standards maintained

Thousands of jobs have been saved as the Prime Minister secured a first-of-a-kind trade agreement with the US.

It is the second major trade announcement this week – following the India Free Trade Agreement on Tuesday, this historic agreement with the US to slash tariffs delivers for UK carmakers, steelworks and farmers – protecting jobs and providing stability for exporters.

Car export tariffs will reduce from 27.5% to 10% – saving hundreds of millions a year for Jaguar Land Rover alone. This will apply to a quota of 100,000 UK cars, almost the total the UK exported last year.

The Prime Minister visited Jaguar Land Rover last month announcing greater freedom for car manufacturers to back British industry in the face of global headwinds. During this visit he told workers he would accelerate trade deals to protect their jobs, their livelihoods, and to champion British business worldwide.

The UK steel industry – which was on the brink of collapse just weeks ago – will no longer face tariffs thanks to today’s deal. The Prime Minister negotiated the 25% tariff down to zero, meaning UK steelmakers can carry on exporting to the US. This follows last month’s intervention from the Prime Minister to take control of British Steel to save thousands of jobs in Scunthorpe.

In a win for both nations, we have agreed new reciprocal market access on beef – with UK farmers given a tariff free quota for 13,000 metric tonnes. There will be no weakening of UK food standards on imports.

We will also remove the tariff on ethanol – which is used to produce beer – coming into the UK from the US, down to zero.

It is one of many international deals that the Government is landing to boost our economy – following an Indian trade deal which will add £4.8 billion to the UK economy and £2.2 billion in wages every year.

Prime Minister, Keir Starmer, said:

“The new global era demands a government that steps up, not stands aside.

“This historic deal delivers for British business and British workers protecting thousands of British jobs in key sectors including car manufacturing and steel.

“My government has put Britain at the front of the queue because we want to work constructively with allies for mutual benefit rather than turning our back on the world.

“As VE Day reminds us, the UK has no greater ally than the United States, so I am delighted that eight decades on, under President Trump the special relationship remains a force for economic and national security.

“This is jobs saved, jobs won but not job done and our teams will continue to work to build on this agreement.

“My Government is determined to go further and faster to strengthen the UK’s economy, putting more money in working people’s pockets as part of our Plan for Change.”

Business and Trade Secretary Jonathan Reynolds said:

“I am delighted our calm approach and proactive engagement with the US has resulted in this deal which cuts tariffs for UK industry and cuts costs for businesses.

“Businesses across the country will be glad to see our approach working, but this is only the beginning. We look forward to strengthening our trading relationship with the US through a wider economic deal, which will help us to deliver on our Plan for Change to provide economic stability and make this country fit for the future.”

Adrian Mardell, Chief Executive Officer, JLR said:

“The car industry is vital to the UK’s economic prosperity, sustaining 250,000 jobs. We warmly welcome this deal which secures greater certainty for our sector and the communities it supports. We would like to thank the UK and US Governments for agreeing this deal at pace and look forward to continued engagement over the coming months.”

Work will continue on the remaining sectors – such as pharmaceuticals and remaining reciprocal tariffs. But – in an important move – the US has agreed that the UK will get preferential treatment in any further tariffs imposed as part of Section 232 investigations. The deal opens the way to a future UK US technology partnership through which our science-rich nations will collaborate in key areas of advanced technology, for example biotech, life sciences, quantum computing, nuclear fusion, aerospace and space.

The Digital Services Tax remains unchanged as part of today’s deal. Instead the two nations have agreed to work on a digital trade deal that will strip back paperwork for British firms trying to export to the US – opening the UK up to a huge market that will put rocket boosters on the UK economy.

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Published 8 May 2025
MIL OSI United Kingdom –
May 9, 2025

Category: Commerce

Winning the AI Race:Strengthening U.S. Capabilities in Computing and Innovation

Written Testimony of Brad SmithVice Chair and President, Microsoft Corporation

Senate Commerce Committee

AI as a General Purpose Technology

The AI Tech Stack

Success Requires an Entire Ecosystem

Winning the Innovation Race

Power the growth of datacenters

Grow the AI Infrastructure workforce

Invest in AI research and development

Ensure public data is open and accessible

Winning the AI Diffusion Race

Skill the American workforce

Encourage AI adoption

Exporting American AI

Landmark Economic Deal with US saves thousands of jobs

Prime Minister, Keir Starmer, said:

Business and Trade Secretary Jonathan Reynolds said:

Adrian Mardell, Chief Executive Officer, JLR said:

Share this page

Updates to this page

Winning the AI Race:
Strengthening U.S. Capabilities in Computing and Innovation

Written Testimony of Brad Smith
Vice Chair and President, Microsoft Corporation