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Category: Commerce

  • MIL-OSI Asia-Pac: FS revs up city’s trade engine

    Source: Hong Kong Information Services

    Financial Secretary Paul Chan said today that the Government will strive to bolster Hong Kong’s status as an international trade centre, supply chain management centre, and transportation and logistics hub.

    In his 2025-26 Budget speech, he said efforts will be made to expand the city’s trade network, reinforce its connectivity and attract more inward investment, while also strengthening support for local enterprises.

    As regards Hong Kong’s supply chain management capabilities, Mr Chan iterated that the Hong Kong Trade Development Council and InvestHK jointly provide assistance to Mainland enterprises in using Hong Kong as a base to manage their offshore trading and supply chain activities.

    In terms of trade financing, he said the Trade Financing Liquidity Facility recently introduced by Monetary Authority (HKMA) and the People’s Bank of China provides greater flexibility for RMB financing. In addition, the Hong Kong Export Credit Insurance Corporation offers credit insurance to support enterprises seeking to go global.

    Mr Chan said the Government is considering making legislative amendments to facilitate digitalisation of trade documents, and will submit proposals to the Legislative Council next year.

    In efforts to expand Hong Kong’s trade network and attract more inward investment, the Financial Secretary said the Government is liaising with the governments of Malaysia and Saudi Arabia with a view to establishing Economic & Trade Offices in those countries. In addition, InvestHK has established consultant offices in Egypt and Türkiye, while the HKTDC has set up a consultant office in Cambodia.

    Moreover, the Government is exploring investment agreements with Saudi Arabia, Bangladesh, Egypt and Peru, and is conducting negotiations with 17 countries on establishing Comprehensive Avoidance of Double Taxation Agreements.

    Mr Chan outlined that Hong Kong will continue to cultivate markets in the Association of Southeast Asian Nations (ASEAN) and the Middle East, besides exploring opportunities in Central Asia, South Asia and North Africa. With regard to the Belt & Road (B&R) Initiative, he added that the HKTDC will strengthen project matching, particularly in relation to green development and innovation and technology (I&T).

    Meanwhile, to support the development of local enterprises and help them to go global, the finance chief said the Government will inject a total of $1.5 billion into two funds: the Dedicated Fund on Branding, Upgrading and Domestic Sales and the Export Marketing and Trade and Industrial Organisation Support Fund. Application arrangements will also be streamlined.

    In terms of support for Small and Medium Enterprises (SMEs), Mr Chan also highlighted that numerous banks have joined the Taskforce on SME Lending jointly established by the HKMA and the Hong Kong Association of Banks. He said that the funds dedicated for SME financing in the participating banks’ loan portfolios recently increased to over $390 billion.

    In collaboration with large-scale e-commerce platforms, the HKTDC will also launch “E-Commerce Express”, in order to provide Hong Kong enterprises with one-to-one consultation services and thematic seminars. In addition, it will enhance the mentorship scheme it operates in collaboration with the Trade & Industry Department, and will organise a second edition of the Hong Kong Shopping Festival.

    Turning to Hong Kong’s maritime industry, Mr Chan said the Government will adopt an “innovative spirit” with regard to its development.

    He revealed that a Hong Kong Maritime & Port Development Board will be established this year to support research, industry promotion and manpower training. In addition, he said a half-rate tax concession for eligible commodity traders will be introduced.

    With regard to logistics development, the finance chief said the Government has initiated a study on developing modern logistics sites in the Northern Metropolis and expects that its findings will be announced this year.

    Meanwhile, with a view to developing a smart port, $215 million has been allocated to installing a port community system that will encourage the flow of data among stakeholders in the maritime, port and logistics industries. 

    In relation to the Government’s plans to bolster Hong Kong’s reputation as an international aviation hub, Mr Chan said the Three-Runway System at Hong Kong International Airport was commissioned at the end of last year and that related passenger facilities will become operational in phases from the end of this year.

    He also highlighted that the Airport Authority (AA) recently promulgated a development plan for the expansion of Airport City, and revealed that the Hong Kong International Aviation Academy will expand its training programmes to cover C919 aircraft following their official deployment in scheduled flights between Hong Kong and Shanghai in January.

    Mr Chan added that the AA has signed a Memorandum of Understanding with a leading overseas professional aeronautic services company to explore the possibility of providing professional services such as aircraft dismantling, parts recycling and related training in Hong Kong.

    MIL OSI Asia Pacific News –

    February 26, 2025

  • MIL-OSI Asia-Pac: $1b set aside for AI R&D institute

    Source: Hong Kong Information Services

    In his 2025-26 Budget Speech this morning, Financial Secretary Paul Chan outlined that Hong Kong is committed to cultivating new quality productive forces in accordance with national strategies, and to leveraging the economic potential of innovation and technology (I&T), including the development and adoption of artificial intelligence (AI).

    In particular, he announced that a Hong Kong AI Research and Development Institute will be set up to promote the application of research outcomes.

    Mr Chan highlighted that the Government will strive both to develop AI as a core industry and to empower traditional industries to upgrade and transform through AI adoption.

    Announcing that $1 billion has been set aside for the establishment of a Hong Kong AI Research and Development Institute, he explained that it will spearhead both research and development (R&D) and industrial applications of AI, with the Digital Policy Office being given responsibility for the institute’s formulation.

    Mr Chan also reported that computing power at Cyberport’s AI Supercomputing Centre is on schedule to reach 3,000 petaFLOPS this year, and that two pilot lines at the Hong Kong Microelectronics Research & Development Institute will begin operating at the Microelectronics Centre in Yuen Long next year.

    To boost Hong Kong’s international standing in the industry, the finance chief revealed that the Hong Kong Investment Corporation will host the first International Young Scientist Forum on Artificial Intelligence, and the first International Conference on Embodied AI Robots.

    In addition, he said the Hong Kong Exchanges & Clearing, with support from the Securities & Futures Commission, will take forward the establishment of a dedicated “technology enterprises channel” to help specialist technology and biotechnology companies, especially those listed in the Mainland, raise funds and expand their business. Meanwhile, the Government will review tax deduction arrangements for various expenditures incurred by firms in obtaining intellectual property rights.

    Mr Chan reported that the Government’s New Industrialisation Funding Scheme has now part-funded the setting up of more than 100 new smart production lines by local manufacturing enterprises across industries ranging from biotechnology and nanofibre materials to new energy. Additionally, the New Industrialisation Acceleration Scheme, launched in September to help firms build smart production facilities, recently approved its first project, awarding $200 million to an enterprise in the life and health technology sector.

    Complementing these initiatives, Mr Chan said the Government plans to launch a two-year Pilot Manufacturing & Production Line Upgrade Support Scheme this year, and has earmarked $100 million for it. The scheme will provide funding of up to $250,000 to enterprises, on a one-to-two matching basis, to support their adoption of advanced production technologies.

    The Government will also set up a $10 billion I&T Industry‑Oriented Fund to channel more market capital towards investing in emerging and future industries of strategic importance. It is inviting organisations to submit expressions of interest and aims to seek funding approval from the Legislative Council in the middle of this year.

    Moreover, the Government is preparing to launch a $180 million I&T Accelerator Pilot Scheme. It will provide up to $30 million in funding, on a one‑to‑two matching basis, to professional start-up service agencies, with a view to enriching Hong Kong’s I&T start-up ecosystem.

    Mr Chan also shared that the Government will invite proposals, imminently, for the establishment of a third InnoHK research cluster, to be focused on advanced manufacturing, materials, energy and sustainable development.

    Furthermore, the Financial Secretary said the Commerce & Economic Development Bureau and the Office of the Communications Authority are together exploring a set of streamlined procedures for vetting licence applications for the operation of Low Earth Orbit satellites.

    Highlighting that the Shenzhen-Hong Kong-Guangzhou cluster was ranked as the world’s second top science and technology cluster for a fifth consecutive year by the World Intellectual Property Organization (WIPO) in its Global Innovation Index 2024, Mr Chan mentioned that WIPO will hold the launch event for the publication of this year’s index in Hong Kong. He said this underlined the importance of Hong Kong as a core city in the Greater Bay Area and in China’s overall I&T development.

    With regard to life and health technology, the finance chief said the Innovation & Technology Commission is inviting local universities to submit proposals to obtain funding to set up life and health technology research institutes. Meanwhile, the Hong Kong Science & Technology Parks Corporation is studying the sector’s demand for manufacturing facilities that comply with the Good Manufacturing Practices.

    Mr Chan also revealed that an interdepartmental Working Group on Developing Low‑altitude Economy, established at the end of last year, is examining applications for a first batch of Regulatory Sandbox pilot projects and will announce the results soon. In addition, the Government is reviewing the regulatory regime in relation to Hong Kong’s low‑altitude economy and plans to introduce amendments to the Small Unmanned Aircraft Order in the second quarter of this year. It will also consider enacting legislation with regard to Advanced Air Mobility.

    The Financial Secretary pledged that the Government will provide more support for local technology companies to promote their products. For example, the Hong Kong Trade Development Council will add a thematic pop-up display area at the Hong Kong Design Gallery, and at venues hosting major exhibitions, to showcase local I&T products.

    MIL OSI Asia Pacific News –

    February 26, 2025

  • MIL-OSI Australia: Address to the CommsDay Regional and Remote Forum

    Source: Australian Ministers 1

    THE MOST CONNECTED CONTINENT 

    I acknowledge the Traditional Owners, the Ngunnawal and Ngambri people, and those with connections to the lands of the ACT.
     
    I pay my respects to Elders past and present, and First Nations people joining, including First Nations Digital Inclusion Advisory Group co-chair Associate Professor Lyndon Ormond-Parker.
     
    The Advisory Group continues to progress digital inclusion for First Nations people, particularly those in regional and remote Australia.
     
    In December, the Group delivered the First Nations Digital Inclusion Roadmap: 2026 and Beyond, a blueprint for government and industry as we work towards closing the digital divide.
     
    This follows the Advisory Group’s initial report to Government, which helped to inform the First Nations Community Wi-Fi Program – which has been rolled out in around 20 communities.

    Last week, I announced a contestable program to provide the next tranche of Community Wi-Fi.  
     
    We have also set up a First Nations Digital Support Hub and Network of Digital Mentors, and improved national data collection.
     
    These initiatives are making a real difference to First Nations communities, which remain some of the nation’s most digitally isolated.
     
    Of course, there is a lot more work to do – collectively – to close the digital divide.
     
    I thank the Advisory Group for their on-going commitment and progress on this, and I welcome their participation at the CommsDay Regional and Remote Forum.
     
    It is wonderful to be part of this inaugural – and very timely – forum focussed on the future of regional and remote connectivity in Australia.
     
    Thank you, Grahame Lynch, for bringing together industry, consumer advocates, and government representatives in the nation’s capital.
     
    It’s great to see so many familiar faces; I know many of you have travelled far to take part.
     
    From Forthside in Tasmania to Belyuen in the Top End, from Moruya on the NSW South Coast to Port Augusta in South Australia, from King Island to Palm Island, everywhere I travel across regional, rural and remote Australia, I see the work of building Australia’s future is gathering pace.
     
    Whether it’s Medicare, superannuation, childcare, or the National Broadband Network, Labor governments have a proud history of expanding universal access to essential services that Australians rely on.
     
    Labor founded the NBN to provide fast, reliable and affordable internet to all people in Australia, regardless of where they live.
     
    Families and businesses in our regions and suburbs should have equal access to the opportunities the NBN delivers.
     
    And Labor’s NBN is already saving households more than 100 hours and $2,580 per year in avoided travel time and costs.
     
    And we are very proud of our record on delivery.
     
    When we came into office, fewer than 300,000 premises had access to NBN fibre upgrades. Today, more than 4.3 million premises do.
     
    The Albanese Government is on track to reach our commitment of extending fibre upgrades to 5 million premises by the end of 2025 – on time and within budget.
     
    Today, there are an additional 2.7 million higher-speed plans taken up – an 80 per cent increase from when we came into office.
     
    We have delivered our $480 million upgrades to NBN Co’s Fixed Wireless and Satellite services, more than doubling average speeds.
     
    Around 800,000 households and businesses in regional, remote and peri-urban areas can now benefit from faster broadband and increased data.
     
    This includes 122,000 premises formerly in the satellite footprint.
     
    This freed up satellite capacity and enabled NBN Co to launch a Sky Muster Premium service with download speeds of up to 100 Mbps and unmetered data.
     
    This resulted in a 75 per cent surge in data consumption for active Skymuster users, delivering important economic and social benefits in health and education.
     
    Our Government is listening to the community – including through the 2024 Regional Telecommunications Review – about the importance they place on increasing minimum regulated broadband speeds to reflect today’s needs.
     
    The current legislated guarantee is for only 25Mbps download speeds, which does not reflect the growing capability of the NBN and other telecommunications networks in Australia, consumer expectations or emerging international norms.
     
    I have asked my Department to commence work on a public consultation on the pathway to increase the minimum download speed to 100Mbps.
     
    An increase over time to Australia’s regulated broadband speeds will bring Australia in line with international best practice and help to power the economy.
     
    And ensure fair and equitable access to services that better meet the needs of users in our increasingly digitally-driven economy.
     
    It’s no secret I have a passion for my portfolio.
     
    As Communications Minister, I’ve seen the transformation connectivity is having at every level of our society and economy.
     
    The difference it is making to people, businesses and communities and our regions.
     
    Building Australia’s future to be the most connected continent is more than critical infrastructure – it’s about the long-term interests of consumers.
     
    It demands forward-looking regulatory environments that facilitate competition.
     
    Over the past few years, 5G has been deployed, fibre access expanded, and low orbit satellites are providing next generation services.
     
    Yet the Universal Service Obligation remains stuck in a different era, entirely at odds with society’s needs for mobility.
     
    Introduced in the 1990s, the USO is a consumer protection to support reasonable access to landlines and payphones for people in Australia.
     
    This was a time when the voice-only ‘brick’ phone was exciting and expensive!
     
    The very first 1G phone was introduced in Australia by Telecom in 1987, retailing at a massive $4,250 or nearly $12,000 in today’s dollars.
     
    The idea of being able to walk and talk was novel. The concepts of mobile web browsing or video calling were almost non-existent.
     
    Today, mobile phones are comparatively affordable, and their use is ubiquitous.
     
    The Universal Service Obligation is as dated as those brick phones of the past.
     
    The only way to build regional Australia’s mobile future is with a modern USO, where mobile coverage is an explicit policy objective for the first time.
     
    And I am proud to say this is what Labor will deliver.
     
    The Albanese Government, if reelected, will legislate a Universal Outdoor Mobile Obligation, known as UOMO.
     
    This is about recognising, in the truest sense of the word, that mobile connectivity is an essential service.
     
    UOMO will require mobile operators to provide outdoor mobile coverage nearly everywhere in Australia where you can see the sky.
     
    This includes the around 70 per cent of our vast continent that does not have mobile connectivity. 
     
    UOMO will enable more Australians to send messages and make voice calls, including calls to Triple Zero, during emergencies and natural disasters.

    This responds to a key piece of feedback from the Regional Telecommunications Review about the need for multiple connection paths.
     
    And unlike universal landline and broadband where Telstra and NBN Co are effectively the sole providers of the obligation, an express policy objective of Labor’s Universal Outdoor Mobile Obligation is to facilitate competitive coverage.
     
    This reform will ensure up to 5 million square kilometers of new and competitive outdoor mobile coverage across Australia, including more than 37,000 kilometers of new coverage along roads and highways in regional and rural communities.
     
    Just think about what this means for the farmer out in the paddock, the injured hiker on the trail, or the distressed parent whose car has broken down.
     
    I welcome the strong endorsements of ACCAN, the National Farmers’ Federation, regional telecommunication stakeholders like the Better Internet for Regional and Rural Australia group, the Regional Telecommunications Independent Review Committee, the NSW Rural Fire Service, the First Nations Digital Advisory Council and a growing list of local and regional councils.
     
    The only mindless opposition is coming from the Coalition.
     
    The Nationals say we are going too slow.
     
    The Liberals say we should not be doing this at all or going too fast.
     
    This smorgasbord of incoherence and freewheeling incompetence is emblematic of a Liberal-National Party that does not know what it stands for.

    In contrast, the Labor Party is very clear on where we want to go.
     
    The Albanese Government will work closely with industry, regulators and stakeholders to introduce legislation in 2025, and work on this has commenced.
     
    The initial focus will be on increasing access to messaging and voice services, with a public-safety focus.
     
    We expect the voice and SMS obligation to be implemented by late 2027, with many Australians likely to benefit well before then.
     
    Given our audience here, I’d like to take this opportunity to provide further detail around the regulatory and policy context, and thank them for their participation in this reform process.
     
    Firstly, we understand this is a rapidly-developing market and our implementation timeline has been designed with regard to this.
     
    Where warranted by global supply, spectrum or capability factors, our legislation will afford mobile operators appropriate flexibility on implementation.
     
    Our Government will also engage with industry and examine incentives to promote competition objectives and public interest outcomes.
     
    As I outlined earlier, a top priority of the Government is to facilitate a healthy supply side market, that offers carriers and consumers choice.
     
    Promoting competition is an express policy feature of UOMO’s design.
     
    This aim is to bring forward investments and product partnerships, and remove market barriers to enable Australians to contact emergency services through D2D.
     
    Our policy announcement is a demand signal to global low orbit providers – we want you to expand your capability in Australia.
     
    The D2D capability is initially expected to provide baseline text messaging, then voice calls and, in time, limited mobile data.
     
    Broadly, industry is targeting the availability of D2D messaging from late this year, followed by voice from 2026 onwards.
     
    Our Government’s expectation is that these services will be well and truly in the market by late 2027.
     
    Secondly, D2D is not a replacement for terrestrial mobile networks or the USO.
     
    It will complement existing networks with a thin coverage layer, and ensure we cover as much of Australia as possible, for the benefit of all.
     
    Labor is filling a giant “black spot” that could simply never be addressed through mobile tower deployment at this scale or speed.
     
    As you are well aware, terrestrial-based network expansion can be a “law of diminishing returns” up against challenging geography and customer ratios that do not stack-up to commercial viability.
     
    The Government remains committed to existing co-investment programs, such as the Mobile Black Spot Program, and the Mobile Network Hardening Program.
     
    These programs will evolve with UOMO to deliver the best public policy outcomes for regional communities – of this I am very confident.
     
    Thirdly, I want to affirm our commitment to engagement.
     
    The expanded Universal Service Obligation framework follows two years of evidence-based groundwork, consultation and engagement.
     
    Early this term, I recognised the potential of the opportunity of LEOSat technology.
     
    I established the LEO Satellite Working Group to bring together the perspectives of global operators, Australian telcos, spectrum and engineering experts, and regional stakeholders.
     
    The Working Group, and data emerging from our LEOSat technical trials, is helping to inform our ongoing work on universal services modernisation.
     
    We have also been engaging with:

    • Global and domestic industry on D2D technology roadmaps;
    • the Australian Communications and Media Authority on radio communications spectrum considerations;
    • the Regional Telecommunications Review, local councils and the First Nations Digital Inclusion Advisory Group;
    • And, importantly, regional and remote consumers and communities.

    The Albanese Government, if re-elected, will continue this collaborative approach, working with the satellite industry, regulators, mobile network operators, consumer groups and other stakeholders as we develop, and introduce, legislation this year.
     
    Finally, we have expectations of industry around providing clear, accurate and accessible public information for consumers.
     
    Consumers need a clear understanding of the capability of D2D services and device compatibility.
     
    We are not talking about streaming Netflix from the Pilbara.
     
    I’ve been advised by industry that different devices are being rigorously tested for compatibility, and that more handsets are becoming eligible. 
     
    This is in keeping with international developments.
     
    We now have in place a more robust handset testing scheme built around the collaboration of the CommsAlliance, test labs at the University of Technology Sydney and the overarching regime administered by the ACMA.
     
    This will be leveraged to ensure consumers are better educated and receive reliable information.

    Because LEOSats orbit close to the Earth, they can provide services to mobile phones that usually communicate through terrestrial networks.
     
    Even during emergencies, when power outages impact the availability of local mobile towers, LEOSats can provide a thin layer of coverage.
     
    Last month, from Los Angeles, we saw this capability in action.
     
    As the highly destructive and deadly wildfires struck, thousands of messages were sent via D2D by thousands of people using standard unmodified devices.
     
    In the depths of crisis, people could text loved ones, neighbours, and, most importantly, emergency services – even when terrestrial networks were silenced.
     
    The public safety implications of D2D cannot be underestimated, particularly during natural disasters – which are becoming far more frequent and destructive.
     
    Closer to home, over the Summer, Australians were transfixed by the disappearance of bush walker Hadi Nazari who got lost in Kosciuszko National Park.
     
    Almost two weeks after he went missing in the unforgiving wilderness he was, thankfully, found alive.
     
    The significant search and rescue operation included a dozen SES teams, 200 personnel, more than 4000 volunteer hours and specialist aircraft.
     
    Hadi’s location could have been known within minutes with a charged mobile phone, Direct 2 Device technology, and a clear view to the sky.
     
    D2D will substantially expand opportunity for people to seek help if they are lost, injured or facing natural disasters in areas without terrestrial mobile coverage.
     
    It will give consumers more connectivity options, as mobile networks are already required to carry all Triple Zero voice calls over their networks.
     
    Early mover markets include the US and New Zealand, where we are seeing limited text to emergency services emerge as an early D2D capability.
     
    In the US, T-Mobile has opened registration for a Beta program, with priority given to first responder agencies and individuals.
     
    One New Zealand provider currently offers D2D text services across a number of premium phones. 
     
    My Department is exploring the feasibility and desirability of expanding the Triple Zero service to have message-based capability – recognising that access to Triple Zero by voice is preferred in time critical situations.
     
    It is also important that people know which devices can access D2D services, and the Government will work with the industry regulator to ensure there is clear public information on this.
     
    This is just the first step towards reform to the USO.
     
    The Department will commence consultation to inform the development of legislation, and we encourage all stakeholders to engage in that process.
     
    The Government has also sought advice on incentives and the removal of barriers to support competition outcomes and public interest objectives.
     
    That work is also underway, and if the Government is returned to office, will gather pace as this would be our top communications legislative priority for 2025.
     
    As part of this process, we will develop a roadmap for a basic data obligation, alongside voice and text as technology evolves.
     
    The Government continues to work through the recommendations of the 2024 Regional Telecommunications Review alongside progress on USO reform.
     
    Undertaken every three years, the review is an opportunity for people living and working outside major cities to share their experiences, views and expectations regarding connectivity and telecommunications services.
     
    The community response to the 2024 review represented a four-fold increase in participation on the previous review.
     
    The unprecedented interest in the work of the Regional Telecommunications Review reflects the importance placed on connectivity in these communities.

    The Committee conducted online consultations and 20 in-person sessions across Australia from Thursday Island to Geraldton, Katherine and Benalla.
     
    In total, more than 4,000 stakeholders took part and more than 3,000 survey responses were received.
     
    The Committee engaged with industry throughout the process to address issues raised during consultations and potential reform options were workshopped.
     
    I’d like to thank Committee Chair, the Honorable Alannah MacTiernan – who will be addressing the Forum this morning.
     
    As well as Committee Members Kristy Sparrow, the Honorable Fiona Nash, Dr Jessa Rogers and Ian Kelly for their extensive work, expert advice and engagement on the ground.
     
    The report’s 14 recommendations address a diverse range of telecommunications issues – from enhanced mobile coverage, consumer affordability, universal service modernisation and the role of LEOSats, through to First Nations inclusion and digital literacy.
     
    We are considering the report’s findings and recommendations and continue to work with key partners like all of you here in the room.
     
    As I noted at the outset, Labor governments have a proud history of expanding universal access and UOMO is the next important piece of architecture.
     
    Australians are proud and early adopters of technology, and we are ambitious to leverage this advantage as part of building a better future.
     
    There is tremendous activity and buzz in the communications space right now.
     
    It’s a time of reform, in-sync with incredible innovation that is making once unviable goals a reality.
     
    This Forum is shining a spotlight on the opportunities this presents for regional, rural and remote Australia.
     
    We know some of these communities face connectivity challenges their city counterparts do not.
     
    Since coming to office, we have been working hard to bridge this divide.
     
    At the last election, we took a record regional telecommunications and connectivity package to the election.
     
    Since then, the Government and NBN Co have expanded fibre access and upgraded fixed wireless, collectively enabling higher speeds to a footprint of nearly 5 million homes and businesses.
     
    Government and industry co-investment has delivered 146 local projects under our Regional Connectivity Plan.
     
    And more than 150 base stations have been built under the Mobile Black Spot Program this term.
     
    These projects have helped carry over 43 million calls, including 48,000 emergency calls.
     
    We are backing Aussie farmers and ag-tech suppliers through our hugely popular On Farm Connectivity Program, which the National Farmers Federation has singled out as one of the best Commonwealth initiatives ever for their sector.
     
    NBN Co has delivered free Community Wi-Fi for First Nations communities, and free home broadband to school kids who would otherwise go without.
     
    And just this week, we have tripled down on our ambition and optimism for the future with our announcement of a Universal Outdoor Mobile Obligation.
     
    The fact is the Albanese Government is delivering with competence, and with a Labor heart.
     
    And the biggest risk to this progress is a Liberal-National Coalition Government.
     
    Let there be no doubt that if Peter Dutton becomes Prime Minister he will privatise the NBN to pay for his $600 billion nuclear fantasy.
     
    It is Australian consumers and regional communities who will pay the price.
     
    In nine years, the Coalition took Australia back from fibre to copper, and created a new acronym for the universal access framework which they were unwilling to reform.
     
    And just before they were voted out, they sneakily tried to push up NBN wholesale prices by inflation plus three per cent on some products.

    Their new Shadow Minister – the third in three years – never once mentioned connectivity during her six years in Parliament before coming into the portfolio.
     
    And Mr Dutton will ensure the Shadow’s effective title will be the ‘Minister for Privatisation’ – not the Minister for Communications.
     
    Australia can do much better than that.
     
    I want to close by thanking the industry, consumer groups, and indeed regional and stakeholders across this portfolio for your engagement throughout this term.
     
    We have learnt much from you. We have left nothing on the field, and sought to do our best.
     
    As a marginal seat holder, and as I’ve said before previous elections, I’ll either be seeing a lot more of you or a lot less of you.
     
    And an important election contest will be fought over the coming month or two.
     
    What I do want you to know is that I and the Albanese Government genuinely value your expertise, and your voice has made a difference.
     
    Now is not a time for thinking small, looking back or aiming low.
     
    This is a time to lean-in to opportunities and forge ahead in making Australia the most connected continent.
     
    Labor is doing this with one eye on the sky, and the other watching out for what’s best for all Australians – regardless of who – or where – they are.

    Every Australian deserves access to fast, reliable and affordable connectivity.
     
    Let’s keep working together to build our future, and deliver the modern world-class communications network our country demands and deserves.
     
    Thank you.
     

    MIL OSI News –

    February 26, 2025

  • MIL-OSI New Zealand: Energy – ELECTRIFY QUEENSTOWN: POWERING INNOVATION, COST SAVINGS AND DECARBONISATION

    Source: Electrify Queenstown

    Wednesday 26 February 2025 (Queenstown, New Zealand) — Queenstown businesses and households are invited to explore practical ways to save money, become more energy efficient, and decarbonise with the return of Electrify Queenstown in May.

    Building on the success of last year’s inaugural event, Destination Queenstown, with support from Queenstown Business Chamber of Commerce, will present a three-day programme designed to innovate and inspire change in the Queenstown Lakes.

    With principal sponsor Aurora Energy onboard for the second year, Electrify Queenstown promises to deliver an electric experience for the Queenstown community.

    Mat Woods, Destination Queenstown Chief Executive, says this year’s expanded programme caters to tourism operators, business owners, homeowners and anyone curious about making the switch to enable fully electric heating, cooking and transport.

    “Electrify Queenstown will share ideas and innovations to support businesses and households to electrify, save money and decarbonise. We’re excited about the win-win potential of electrification in supporting a vibrant, growing economy while protecting the environment for future generations,” he said.

    The opening day on Monday 26 May will take stage at Skyline Queenstown, a trailblazer in tourism innovation and electrification.

    Queenstown Lakes District Mayor, Glyn Lewers, will open with a welcome address followed by keynote speaker Saul Griffith — globally acclaimed author and entrepreneur sharing insights on why we must electrify and switch to renewable technology. An inspirational line up of speakers includes industry experts, policy makers and innovators who will present both the challenges and the vast potential of electrification from an economic, environmental and social perspective.

    Sharon Fifield, Queenstown Business Chamber Chief Executive, said, “It’s important, in what has recently been a tough economic climate, that any changes made in your business don’t sacrifice your bottom line. We’re thrilled to have experts joining Electrify Queenstown to share the benefits and opportunities that come with electrifying a business including cost savings, improved productivity, and emissions reductions.”

    On the second day, a full programme at the Queenstown Events Centre will spark conversations about the opportunities for businesses and households with electrification, and innovations in electric transport. A tradeshow exhibition will display new technology, low rate loans and exclusive deals, plus the opportunity to join interactive workshops led by experts in electrification and renewable energy. The community evening session from 6pm will focus on the energy transition, how to electrify your home and the role of electrification in community resilience.

    The third and final day will involve immersive electric experiences, sharing the very best in tourism innovation and technology, from local operators and global leaders.

    Lines company Aurora Energy is proud to once again be the principal sponsor of the Electrify Queenstown event.

    Richard Fletcher, Aurora Energy Chief Executive, said, “The growth of this event from one day to three days highlights the increasing demand and interest in electrification within our region. Aurora Energy is committed to ensuring that our network is ready to enable the future electricity and technology choices of consumers.

    “In supporting events such as these we hope we can play a part helping local businesses and communities be informed about the benefits of electricity, whether it is supplied from the national grid or generated and stored locally. We look forward to meeting with those attending, and discussing how we can work together towards a sustainable, efficient, and resilient future.” Richard said.

    Electrify Queenstown will take place over three days from 26 – 28 May 2025. Registrations are open for individual sessions, a day pass, or for the full three-day event.  

    For more information visit: electrifyqueenstown.co.nz

    Electrify Queenstown programme summary

    Monday 26 May 2025: Setting the stage for electrification (Skyline Queenstown)
    Tuesday 27 May 2025: Electrification in action (Queenstown Events Centre)
    Wednesday 28 May 2025: Electric experiences (Details coming soon)

    MIL OSI New Zealand News –

    February 26, 2025

  • MIL-OSI Economics: Development Asia: Strengthening E-Commerce Payment Systems Amid Insolvency Risks

    Source: Asia Development Bank

    The payment process of e-commerce transactions between buyers and sellers typically involves payment originators such as card companies, payment gateways (PGs), e-commerce platforms, and issuers of e-payment instruments, including mobile vouchers and e-coupons.[1] Payment gateways not only relay buyers’ payment information received from platforms to credit card companies but also act as a representative merchants for many subordinate vendors by serving as their payment agents. The payment gateway directly linked to the payment originator is referred to as the primary PG, and the platform company subordinated to the primary PG is called the secondary PG. Sales proceeds are settled to vendors through the payment originator, primary PG, and the secondary PG.

    When multiple payment gateways are involved in the payment process, those closer to the payment originator are assigned higher numbers (e.g., PG1, PG2, etc.). Mobile vouchers and e-coupons are considered prepaid e-payment instruments (prepaid e-money) since consumers purchase them in advance of ordering goods.[2] The sales of these prepaid instruments have steadily increased due to promotional discounts offered by issuers. Some companies, like Ticket Monster, may simultaneously operate as a payment gateway, issue their own prepaid e-money (e.g., TIMON Cash), and act as sales agents for third-party prepaid e-money (e.g., Happy Money). Consequently, the payment gateway representing the seller of a voucher may differ from the payment gateway representing the affiliate network of the same voucher.

    Figure 1: A Simple Diagram of E-Commerce Settlement Structure

    Note: 1) Credit card transactions are processed in the following sequence: ① placement of order ② approval of payment ③ receipt of order ④ delivery of goods ⑤ settlement of payment ⑥ card fee payment. 2) Prepaid e-money transactions are processed in this sequence: ⓐ purchase of e-money ⓑ placement of order ⓒ transmission of order and payment order ⓓ delivery of goods ⓔ settlement of payment. However, the order of ⓓ and ⓔ may vary depending on the transaction. 3) Each diagram represents the simplest structure of payment settlement, so the structure could be much more complex and extended in reality.

    MIL OSI Economics –

    February 26, 2025

  • MIL-OSI China: Zeiss Vision sees ‘golden’ decade of growth in country

    Source: China State Council Information Office

    Zeiss Vision will remain dedicated to its investment in China, one of the top priority markets for the German manufacturer of eyeglass lenses and ophthalmic instruments, a senior executive of the company said during an exclusive interview in Shanghai.

    The company will integrate its global expertise with local strategies to align with the demands of the Chinese market, explore and expand new business areas, and shape the future market, said Sven Hermann, a member of the executive board of the 179-year-old Zeiss Group.

    “This year marks the 40th anniversary of the establishment of the China Optometric and Optical Association, and Zeiss Vision Care has been rooted in China for 30 years,” said Hermann, who is also president and CEO of Zeiss Consumer Markets.

    “We are honored to have witnessed the prosperous development of the industry in China, and we have full confidence in our sustainable prosperity in China and our contribution to the high-quality development of the vision care industry,” he said during this year’s China (Shanghai) International Optics Fair (SIOF), which concluded on Saturday.

    Hermann noted that the company expects China, a fast-growth market, to become its largest market and the biggest contributor for Zeiss Vision Care.

    “By closely understanding the needs of Chinese consumers, we will innovatively introduce diversified products, especially those that meet digital trends. Also, based on a deep understanding of consumers, we will adapt marketing strategies that meet the market need, thereby deepening our brand influence,” he said.

    “We will be growing with our customers in China. We believe that we will see a golden decade of growth of eyecare in China and us focusing on delivering superior eyecare to deliver astonishing growth,” he said.

    Data by market consultancy Frost& Sullivan showed the number of people with refractive errors and cataracts in China will reach 769 million in 2025, and the demand for ophthalmic diagnosis and treatments will continue to increase.

    According to China Insights Consultancy, the size of the ophthalmic market in China reached 223.1 billion yuan ($30.7 billion) last year, and is expected to exceed 250 billion yuan in 2025.

    Zeiss has invested in six legal entities in Guangzhou, Guangdong province, covering a diverse range of businesses in the optical field with a total cumulative investment of nearly 4.1 billion yuan. It has established a comprehensive and sustainable eye health industry ecosystem encompassing such key functions as product design, research and development, manufacturing, personalized customization and sales.

    Hermann said this is having a positive impact on the industry, driving technological innovation and progress.

    During the past two fiscal years, 15 percent of the company’s revenues were spent on R&D, which laid the foundation for the success and continued expansion of the company’s technology and market leadership, said Hermann.

    At this year’s SIOF, the company launched the Zeiss DuraVision Gold UV coating that features innovative breakthroughs in aesthetics, performance and cleanability.

    In recent years, to address societal concerns in China regarding myopia management among teenagers and presbyopia management, the company launched key products to meet consumer needs. For example, Zeiss MyoCare lenses with C.A.R.E.technology significantly slow axial elongation. Also, Zeiss Progressive Light 2 Lenses are an ideal choice for first-time progressive wearers, allowing users to focus easily and comfortably on both near and far objects.

    MIL OSI China News –

    February 26, 2025

  • MIL-Evening Report: Your super fund is invested in private markets. What are they and why has ASIC raised concerns?

    Source: The Conversation (Au and NZ) – By Mark Melatos, Associate Professor of Economics, University of Sydney

    If you are a member of a super fund, some of your long-term savings are probably invested in private markets.

    Public markets are familiar to most of us – the stock market and government and corporate bond markets. Private markets include unlisted assets such as companies owned by private equity firms, infrastructure investments and private credit markets.

    Corporate watchdog the Australian Securities and Investments Commission (ASIC), has today released a discussion paper that emphasises the growth in private capital, seemingly at the expense of public markets. While the number of listed companies and the value of initial public offerings has shrunk, private equity and infrastructure funds have boomed.

    Should we be worried about this?

    Public vs private markets

    Public markets tend to be transparent, tightly regulated and liquid. Companies listed on the stock exchange publish their financial accounts, hold annual general meetings and their shares can be readily traded.

    In contrast, private markets are lightly regulated. Private capital investments are more opaque, less liquid and, hence, more risky. But they can deliver much higher returns (or losses).

    Often, obtaining capital from private sources makes sense. For example, entrepreneurs whose startup firms are short of revenue, profit and tangible assets are unlikely to be able to raise capital in public markets, or from banks. Instead, they turn to private equity firms for funding.

    What are the concerns?

    In its report, ASIC raises several concerns:

    • the shrinking of Australia’s public equity markets might hurt the economy

    • the rise of private markets may create new or amplified risks

    • the lack of transparency of private markets poses a challenge for investors and regulators.

    Public markets play an important role connecting investors with companies seeking capital. The shrinking of public markets, therefore, has important economic implications. Will private markets be able to pick up the slack?

    Notwithstanding the growth in private capital markets, they are still small compared to their public counterparts. The total capitalisation of the Australian Stock Exchange (ASX) is $3 trillion. Total private capital funds under management are only $150 billion.

    The lack of disclosures in private capital markets might also create more and different risks for financial markets and the economy; risks that regulators may not understand, nor know how to anticipate or effectively mitigate.

    The role of Australian super funds

    ASIC is concerned about the implications for the superannuation industry of the growth of private capital markets and decline in public markets.

    Australia’s superannuation assets now total $4.1 trillion, greater than the value of Australia’s GDP and more than the total value of all companies listed on the ASX. Anything that alters the playing field for Australian super has the potential to create outsized risk (or opportunity) for the Australian economy.

    The ASIC report highlights the growing involvement of Australia’s superannuation funds in private markets. Australia’s two largest super funds, Australian Super and Australian Retirement Trust, each have about 20% of their total funds invested in private markets.

    The fact is that Australia’s superannuation sector has outgrown Australian public markets. They cannot trade shares on the ASX without moving share prices significantly to their detriment. On the other hand, having super funds, which are highly regulated to protect member savings, investing in unregulated private capital markets is jarring, if not potentially risky.

    Having said this, the size of Australia’s super funds means they can set the terms and price at which they invest. This power is most valuable in private deals; less so in public markets where a company’s stock price and its financial accounts are public knowledge.

    Increasingly, super funds directly invest in infrastructure projects such as ports and airports rather than buy shares in listed infrastructure firms.

    What’s behind the shift in markets?

    The ASIC report points the finger at the usual culprits for the shift from public to private capital markets, including the regulatory burden on public companies and the rise of technology companies that prefer to tap private capital.

    However, another problem is bedevilling policymakers everywhere: too much capital is chasing too few profitable investment opportunities. Companies have lots of cash on their books and nothing to spend it on.

    Increasingly, such companies have resorted to share buybacks (reducing the number of their shares on issue) to reward investors in a tax-effective way. A lot of the shrinkage in public equity is due to share buybacks that in 2022 alone totalled US$1.3 trillion.

    Why does all this matter?

    The ASIC report is notable for what it does not say; nothing, for example, on its own chequered history of investigative and enforcement action.

    The growing importance of opaque private markets matters more if regulators are asleep at the wheel. ASIC’s tendency for weak oversight and sclerotic enforcement can hardly have raised investor confidence in Australia’s public capital markets.

    Its oversight of initial public offerings (IPOs) has also been questionable over a long period. How can ASIC be expected to adequately manage complex private capital market risks given its woeful performance managing simpler public market risks?

    The apparent decline of public markets has been spooking even sophisticated private financial market players – including, most notably, Jamie Dimon, CEO of JP Morgan. If Dimon is concerned, then ASIC – and all of us – should probably also be concerned.

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

    – ref. Your super fund is invested in private markets. What are they and why has ASIC raised concerns? – https://theconversation.com/your-super-fund-is-invested-in-private-markets-what-are-they-and-why-has-asic-raised-concerns-250788

    MIL OSI Analysis – EveningReport.nz –

    February 26, 2025

  • MIL-OSI Banking: Samsung and Hyundai Motor Company Complete Industry-First RedCap Trial on Private 5G Network

    Source: Samsung

    Samsung Electronics today announced that the company has successfully completed the industry’s first end-to-end Reduced Capability (RedCap) trial over a private 5G network with Hyundai Motor Company (Hyundai Motor), a global leader in smart mobility solutions. This trial highlights the potential of next-generation industrial private 5G connectivity, and will be showcased at the Samsung booth during the Mobile World Congress (MWC) 2025.
     
    The achievement of this industry-first RedCap end-to-end testing follows Samsung’s successful deployment of the private 5G network in Hyundai Motor’s major manufacturing facility last October. The companies have been working together to transform Hyundai Motor’s Ulsan Plant ― the world’s single largest automobile plant, which produces an average of 6,000, vehicles per day ― as a part of their smart factory innovation.
     
    With Samsung, Hyundai Motor has launched an advanced private 5G network to connect and efficiently manage numerous devices and manufacturing systems across its plant, ensuring real-time data upload and download. A high-performance network with reliable connectivity is crucial for automotive manufacturers to control and optimize smart factory automation systems, as well as properly operate their manufacturing systems and Internet of Things (IoT) devices such as Automated Guided Vehicles (AGVs), which deliver parts to the designated production lines.
     
    ▲ The companies have completed end-to-end RedCap test with Samsung’s private 5G solutions and Hyundai Motor’s Diagnostic SCAN (D Scan) equipment for vehicle inspection.
     
     
    Industry-First End-to-End RedCap Trial on a Samsung-Powered Private 5G Network
    As of January, the companies have carried out end-to-end RedCap technology tests at Samsung’s private 5G network testbed, located at its R&D Center. It was aimed to verify RedCap capabilities and integrated performance across the whole network from vehicle inspection terminal to private 5G core, radios and management system. For this trial, Samsung used its RedCap-powered private 5G network solutions including its virtualized 5G Core, baseband units, radios supporting 4.7 GHz band, and an integrated Network Management System.
     
    The trial also focused on integrating Hyundai Motor’s Diagnostic Scan (D Scan) featuring Qualcomm’s Snapdragon® X35 5G Modem-RF System into Samsung’s private 5G network. This device is developed by Hyundai Motor to be used at its smart factories via wireless communications between vehicles and D Scan to automatically inspect and efficiently determine whether vehicles have been assembled correctly before releasing finished cars. Compared to the old Wi-Fi system, the companies achieved a more seamless, real-time inspection data transmission with high speed and reliable 5G connectivity.
     
    This successful collaboration is another milestone Samsung and Hyundai Motor are marking, as Hyundai Motor plans to continuously expand RedCap private 5G networks to its newest electric vehicle manufacturing facilities to begin their operation in the first half of 2026.
     
    At its smart factories, a range of small devices are in operation ― sensors, cameras, tablet PCs, automatic logistics robots, compact wireless tools and testing equipment ― which make RedCap on a private 5G network a key driver for cost-effective, efficient and intelligent network automation and monitoring.
     
    RedCap is considered a catalyst for the widespread adoption of private 5G networks at manufacturing facilities, construction sites, academic campuses and more. This technology streamlines 5G connectivity for small-size 5G IoT (IoST) devices such as industrial sensors and wearables by lowering complexity and more importantly, increasing battery life while still ensuring the desired data speeds.
     
    “The recent collaboration with Hyundai Motor represents how the two leaders in their respective industries can creatively drive business innovation and unlock new real use cases by merging best-in-class expertise,” said Simon Lee, Vice President and Head of B2B·B2G Business Development, Networks Business at Samsung Electronics. “Samsung’s RedCap-powered private 5G network solutions will open up more possibilities for enterprises, manufacturers and public institutions, serving as a gateway to driving more efficient 5G networks.”
     
    “Hyundai Motor was the first Korean company to implement P-5G in mass production,” said Jae Min Lee, Vice President and Head of E-FOREST Center of Hyundai Motor and Kia. “We are also the industry’s first to verify P-5G RedCap technology, reinforcing our global leadership in smart manufacturing solutions. We will continue to accelerate its commercialization.”
     
    “The adoption of RedCap technology will empower private 5G networks to be more efficient and cost-effective, by allowing for devices with smaller form factors, longer battery life and reduced power consumption.” said Pablo Tomasi, Principal Analyst, Private Networks at Omdia. “Thanks to RedCap, private 5G networks will support an increasingly large set of use cases.”
     
    Samsung continues to actively deliver private 5G networks across a range of verticals, including smart factories, hospitals, universities and construction sites, on top of military facilities and local government agencies. With a proven record in commercial deployments, Samsung provides a comprehensive, end-to-end solution backed by long-term R&D leadership.
     
    Also at MWC 2025, Samsung will unveil its innovative next-generation private 5G network, which leverages the company’s virtualization leadership. Supporting current compact and light hardware-based solutions, Samsung will introduce software-centric private 5G solutions – including vRAN software and other software applications on commercial servers (COTS).
     
    Samsung has pioneered the successful delivery of 5G end-to-end solutions, including chipsets, radios and cores. Through ongoing research and development, Samsung drives the industry to advance 5G networks with its market-leading product portfolio, from vRAN 3.0, Open RAN, core to private network solutions and AI-powered automation tools and applications. The company currently provides innovative network solutions to mobile operators and enterprises that deliver boundless connectivity to hundreds of millions of users worldwide.

    MIL OSI Global Banks –

    February 26, 2025

  • MIL-OSI: Best PDF Editor (2025): Power PDF by Tungsten Automation Named Top PDF Software by Software Experts

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK CITY, Feb. 25, 2025 (GLOBE NEWSWIRE) — Power PDF by Tungsten Automation has been recognized as the leading PDF editing software for 2025 by Expert Consumers, a trusted authority in software reviews. This highlights the continued importance of effective PDF tools in enhancing workplace productivity and digital document workflows, especially in an increasingly remote and collaborative environment.

    Best PDF Editor

    • Power PDF by Tungsten Automation – a trusted, user-friendly PDF editing solution that combines robust features, advanced security, and seamless integration to enhance productivity in digital document workflows.

    PDF editing software remains critical for businesses and professionals managing contracts, reports, and secure documentation. Expert Consumers’ endorsement underscores Power PDF’s role in addressing the evolving demands of document management with its intuitive features, cost-effectiveness, and advanced capabilities.

    Tungsten Automation, previously known as Kofax, has established a legacy of nearly four decades in intelligent workflow automation. With solutions that streamline business-critical processes, the company is a recognized leader in digital transformation. Power PDF, trusted by over 10 million users globally, exemplifies Tungsten’s dedication to innovation by offering a robust and user-friendly tool for creating, editing, and managing PDF files.

    “Power PDF’s combination of functionality, security, and ease of use places it firmly at the forefront of PDF software,” says Expert Consumers. “Its familiar interface, robust feature set, and recent enhancements make it an invaluable tool for both individual users and enterprise teams.”

    Improving document workflows

    Designed to integrate seamlessly into various workflows, Power PDF is equipped with features that support the creation, conversion, editing, and secure sharing of documents. The software’s interface, modeled after the Microsoft Office ribbon design, ensures an intuitive user experience for both seasoned professionals and newcomers. Compatibility with Windows 11 and macOS underscores its versatility, while its mobile support extends functionality to iOS and Android devices, meeting the demands of modern, on-the-go workflows.

    Recent updates to Power PDF have further solidified its reputation as a leading solution. Enhancements on the latest version of Power PDF Business includes Generative AI Copilots that automate document summaries, translations and more, advanced options for customizing stamps, and the ability to embed and interact with 3D models in PDF files.

    Features like PDF/A-4 support for archival standards and proximity-based “Fuzzy Search” ensure the software keeps pace with user needs for accuracy and compliance. Meanwhile, integration with Chrome and Edge through a browser extension allows users to convert web pages to PDFs and append them to existing documents, providing added convenience.

    Tungsten Automation demonstrates its commitment to accessibility and global usability by supporting multiple languages worldwide, including Western, Eastern, and Arabic.

    Tungsten’s Power PDF editor offers flexible licensing options, including individual, organizational, and enterprise solutions, ensuring accessibility for diverse user bases.

    As digital workflows continue to grow in complexity, software like Power PDF plays an essential role in bridging the gap between collaboration and efficiency. By empowering organizations with tools to secure, manage, and streamline documentation, solutions such as Power PDF support broader efforts toward workplace modernization and productivity.

    Use the code BI15PPDF to enjoy a special 15% discount on Power PDF purchases made on tungstenautomation.com – including Standard, Mac, and Advanced editions (excludes Business).

    For more information about Power PDF or Tungsten Automation’s range of workflow automation solutions, read the full review at Software Experts.

    About Software Experts: Software Expert provides news and reviews of consumer products and services. As an affiliate, Software Experts may earn commissions from sales generated using links provided. 

    The MIL Network –

    February 26, 2025

  • MIL-OSI: Arctic Wolf Expands Presence in Japan with Launch of Aurora Endpoint Security

    Source: GlobeNewswire (MIL-OSI)

    TOKYO and EDEN PRAIRIE, Minn., Feb. 25, 2025 (GLOBE NEWSWIRE) — Arctic Wolf®, a global leader in security operations, today announced the launch of Aurora Endpoint Security in Japan, following its recent acquisition of Cylance from BlackBerry. Aurora Endpoint Security builds upon Cylance’s trusted pedigree in the cybersecurity marketplace, delivering AI-driven threat prevention and advanced endpoint protection to businesses of all sizes. This launch strengthens Arctic Wolf’s presence in Japan, one of the world’s most dynamic technology markets.

    Building on Cylance’s Market Presence and Cybersecurity Pedigree
    Japan’s rapid digital transformation has increased the demand for robust cybersecurity solutions. To address this need, Arctic Wolf is building on Cylance’s strong market presence in Japan through significant new investments, including growing its local team of security professionals, sales engineers, and customer success specialists. As customers seek to realize the benefits of a single platform for cybersecurity—ensuring the most effective and efficient protection—Arctic Wolf is deepening strategic partnerships within the Japanese channel community to drive innovation and accelerate the adoption of Aurora Endpoint Security across businesses of all sizes.

    “As cyber threats grow in complexity, businesses in Japan need endpoint security solutions that provide both proactive protection and real-world results,” said Nick Schneider, president and chief executive officer of Arctic Wolf. “The launch of Aurora Endpoint Security in Japan represents more than just technological advancement—it underscores our dedication to this market and our commitment to grow our presence. By advancing the AI-driven protection that organizations in Japan know and trust from Cylance, we are ensuring they receive best-in-class security while further expanding our presence in the region.”

    AI-Powered Endpoint Security to Protect Japanese Businesses
    Aurora Endpoint Security seamlessly integrates with the Arctic Wolf Aurora Platform, leveraging insights from 10,000 global customers and more than eight trillion security observations weekly to deliver AI-driven threat prevention, enhanced security visibility, and advanced endpoint protection. As Japanese organizations prioritize endpoint security, Arctic Wolf provides tailored solutions, powered by one of the largest commercial security operations centers (SOCs) in the world, to defend against modern threats. Aurora Endpoint Security includes four specialized offerings—Aurora Protect, Aurora Endpoint Defense, Aurora Managed Endpoint Defense On-Demand, and Aurora Managed Endpoint Defense—giving organizations the flexibility to choose the right level of protection for their security maturity.

    “Arctic Wolf is committed to strengthening cybersecurity in Japan by delivering advanced endpoint security solutions tailored to the region’s unique needs. Our goal is to equip organizations with the tools, expertise, and support necessary to defend against evolving cyber threats,” said Tsutomu Yoshimoto, Area Vice President, Japan, Arctic Wolf. “Our channel partners play a crucial role in bringing these solutions to market, and we are committed to building strong partnerships to support our customers. I couldn’t be more excited to expand Arctic Wolf’s presence in Japan.”

    Join Arctic Wolf’s Aurora World Tour
    To mark the launch of Aurora Endpoint Security, Arctic Wolf is launching the Aurora World Tour, a global event series making stops in 23 cities across 10 countries, including Tokyo, Japan. These exclusive events will offer customers, partners, and security leaders an in-depth look at the Arctic Wolf Aurora Platform, the integration of Aurora Endpoint Security, and strategic insights on building cyber resilience in a rapidly evolving threat landscape.

    Organizations interested in learning more about Arctic Wolf Endpoint Security, the company’s launch in Japan, or details on the Aurora World Tour, can visit arcticwolf.com.

    Additional Resources:

    About Arctic Wolf
    Arctic Wolf® is a global leader in security operations, enabling customers to manage their cyber risk in the face of modern cyber-attacks via a premier cloud-native security operations platform. The Arctic Wolf Aurora Platform ingests and analyzes more than eight trillion security events a week to help enable cyber defense at an unprecedented capacity and scale, empowering customers of virtually any size across a wide range of industries to feel confident in their security posture, readiness, and long-term resilience. By delivering automated threat protection, response, and remediation capabilities, Arctic Wolf delivers world-class security operations with the push of a button so customers can defend their greatest assets at the speed of data.

    Press Contact:
    North America: pr@arcticwolf.com
    Japan: arctic-wolf@inoue-pr.com

    © 2025 Arctic Wolf Networks, Inc., All Rights Reserved. Arctic Wolf, Aurora, Alpha AI, Arctic Wolf Security Operations Cloud, Arctic Wolf Managed Detection and Response, Arctic Wolf Managed Risk, Arctic Wolf Managed Security Awareness, Arctic Wolf Incident Response, and Arctic Wolf Concierge Security Team are either trademarks or registered trademarks of Arctic Wolf Networks, Inc. or Arctic Wolf Networks Canada, Inc. and any subsidiaries in Canada, the United States, and/or other countries.

    The MIL Network –

    February 26, 2025

  • MIL-OSI New Zealand: BusinessNZ – Tourism provides boost to NZ economy

    Source: BusinessNZ

    BusinessNZ welcomes data released by Statistics New Zealand showing an increase in tourism spend and agrees the sector has potential to boost the economy even further.
    Business New Zealand Chief Executive Katherine Rich says the tourism sector continues to bounce back from the damage caused during the COVID-19 pandemic.
    “The 59 percent increase in tourism spend translates to more than $16 billion in the year to March 2024, but the benefits to New Zealand’s economy go much deeper than the dollar value. As our second largest export industry, tourism employs more than 180,000 people across all regions in both rural and urban settings.
    “BusinessNZ agrees with Tourism Industry Aotearoa in saying the industry has the potential to grow its economic contribution and attract more visitors from key markets in Asia and Europe.
    “The stats out today show positive signs of recovery, but we cannot afford to be complacent.
    “If we want New Zealand to remain a top tourism destination, we must continue investing in much-needed infrastructure, so visitors can enjoy a high-quality experience which is unmatched by anything in the world.”
    The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.

    MIL OSI New Zealand News –

    February 26, 2025

  • MIL-OSI New Zealand: Auckland University – Business School celebrates triple crown

    Source: University of Auckland Business School

    The University of Auckland Business School is in the top one percent in the world, receiving sought-after accreditation from three international organisations – the Association to Advance Collegiate Schools of Business (AACSB), the Association of MBAs (AMBA) and the European Quality Improvement System (EQUIS).

    It was the first in Australasia to attain this ‘triple crown’ in 2004, a recognition it has now maintained for two decades making it the longest-standing triple crown accredited school in the region.

    All three international accrediting bodies praised many aspects of its operations in the latest round of accreditation awards.

    The European Quality Improvement System awarded accreditation to the School based on overall quality, viability and a commitment to continuous improvement. It also considered internationalisation and corporate connections.

    The Business School’s commitment to excellence, academic quality and innovative programme design were among several areas that impressed assessors from the Association of MBAs, an institution known for stringent criteria that evaluate teaching, curriculum and student interaction.

    Meanwhile, accreditation from the Association to Advance Collegiate Schools of Business is achieved by just six percent of the world’s business schools and is considered the gold standard in global business education.

    Business schools that earn this accreditation must demonstrate a commitment to excellence in teaching, research, curriculum development and student success. In the latest accreditation renewal, the organisation commended the Business School for its outstanding research engagement, research-led teaching and strong commitment to positive societal impact through faculty and departmental research centres.

    It said: “The recent establishment of the Energy Centre and Inclusive Capitalism Centre as faculty-level research centres has brought increased emphasis to research agendas of critical significance for New Zealand and the Asia-Pacific region.”

    It also praised the Business School for actively driving initiatives to improve research impact, such as the national research translation competition, which sees academics translate complex studies into relatable reads.

    “Additionally, the experience of the School in developing a wide range of research engagements and collaborations with industry partners, such as with prominent Māori owned seafood company, Moana New Zealand, lead the way in informing classroom learning through rich case study development that prioritises local issues and solutions.”

    Business School Dean Susan Watson says the triple crown achievement is a testament to the School’s exceptional performance across teaching, research, student success and industry engagement.

    “With the successful completion of all three accreditations in an exceptionally compressed timeframe, the Business School continues to demonstrate remarkable organisational capability and sustained excellence,” she says.

    “This recognises our innovative programme design, impactful research and meaningful industry engagement – both in New Zealand and on the world stage.”

    She says the Business School also earned accolades for its cultural leadership.

    “Our unique integration of Māori perspectives and commitment to diversity sets us apart globally. We combine international best practice with local cultural excellence.”

    MIL OSI New Zealand News –

    February 26, 2025

  • MIL-Evening Report: Ignore the ‘ivory tower’ clichés – universities are the innovation partners more Kiwi businesses need

    Source: The Conversation (Au and NZ) – By Omid Aliasghar, Senior Lecturer, Management and International Business, University of Auckland, Waipapa Taumata Rau

    NicoElNino/Shutterstock

    When it comes to turning research into real-world success, New Zealand has a problem.

    Despite the country’s NZ$3.7 billion research and development spending in 2023 – a 17% jump from the previous year — too many New Zealand businesses fail to commercialise innovation.

    According to the World Intellectual Property Organization, New Zealand ranks 21st for innovation inputs. This means we’re good at investing in research and development. But we rank 45th in knowledge outputs and 78th in industry diversification. Essentially, we’re spending more but getting less.

    So, what’s holding the country back? In a lot of cases, it can boil down to a lack of collaboration with universities.

    Universities are typically focused on generating novel or new-to-the world knowledge, with researchers, cutting-edge technology and deep industry connections.

    Working with universities can connect businesses to researchers, government agencies, private industry and global networks. Collaboration can also offer businesses credibility. It signals to investors, partners and customers that they are serious about innovation.

    Yet many businesses underestimate their value. They assume collaboration is slow, academic or bureaucratic.

    Our study – based on a digital survey of 541 firms across a wide range of industries and regions in New Zealand – looked at whether collaborating with universities could help businesses to bring ideas to market, sell intellectual property and develop technology.

    We also considered whether there was a difference in working with international universities versus collaborating with local institutions. While identifying details of the individual businesses were kept confidential, here is what we learned.

    The case for foreign university partnerships

    Our research found partnering with foreign universities allowed New Zealand businesses to tap into global expertise and advanced research. It also provided access to diverse knowledge networks, where businesses could learn from various real-world applications of scientific knowledge.

    For example, a New Zealand business specialising in artificial intelligence (AI) can gain game-changing insights by collaborating with top universities in the United States.

    The partnerships can provide access to leading AI models, advanced algorithms, and global industry connections. These partnerships can enable the business to stay ahead in an increasingly competitive market.

    Additionally, many universities had well-established technology transfer offices. These had experience in helping businesses commercialise research.

    In short, foreign university collaborations opened doors to the world’s best knowledge and technology – critical for firms operating in fast-moving industries.

    New Zealand technology businesses have benefited from partnering with universities based in the United States on artificial intelligence projects.
    Gorodenkoff/Shutterstock

    The strength of local university collaborations

    We also found local university collaborations had their own advantages, including
    an understanding of New Zealand’s specific challenges, from climate change impact on agriculture to AI adoption in small businesses.

    This contextual knowledge made their expertise highly relevant for firms aiming to commercialise innovation within New Zealand’s unique market conditions.

    Working with local universities also allowed businesses to build strong, personal relationships with researchers, fostering faster and more effective knowledge exchange.

    Unlike foreign partnerships, where interactions may be limited to emails and virtual meetings, local collaborations allowed for regular in-person brainstorming, experimentation and problem solving.

    Finally, collaborating with New Zealand’s universities gave businesses access to top local talent, helping them recruit skilled graduates familiar with the domestic market and its needs.

    A balanced approach

    Investing in research and development alone won’t drive innovation for businesses. Without strategic collaboration, firms risk wasting resources on ideas that never reach the market.

    Businesses should take a balanced approach. Foreign university collaborations can offer groundbreaking advances, cutting-edge knowledge and global networks. At the same time, local university collaborations offer accessible knowledge, local expertise and stronger working relationships.

    By embracing these partnerships, New Zealand businesses can turn research into commercial success, drive national economic growth, and position themselves as global innovation leaders. The question is no longer if firms should collaborate with universities – it’s how quickly they can start.

    This research was completed with Annique Un (Northeastern University), Kazuhiro Asakawa (Keio University), Jarrod Haar (Massey University) and Sihong Wu (University of Auckland).

    Omid Aliasghar receives funding support for this research provided by Building New Zealand’s Innovation Capacity Spearhead within the Science for Technological Innovation National Science Challenge.

    – ref. Ignore the ‘ivory tower’ clichés – universities are the innovation partners more Kiwi businesses need – https://theconversation.com/ignore-the-ivory-tower-cliches-universities-are-the-innovation-partners-more-kiwi-businesses-need-249129

    MIL OSI Analysis – EveningReport.nz –

    February 26, 2025

  • MIL-OSI Security: Three Men Plead Guilty In Bribery And Fraud Investigation At Newark Airport

    Source: Office of United States Attorneys

    TRENTON, N.J. – Three men have pleaded guilty in connection with a bribery and fraud investigation pertaining to business at Newark Liberty International Airport (“Newark Airport”), Caroline Sadlowski, Attorney for the United States, announced.

    Edward Dolphin, 65, of Tomball, Texas, pleaded guilty on February 19, 2025, before U.S. District Judge Quraishi in Trenton federal court, to an Information charging him with conspiracy to commit honest services wire fraud. James Wajda, 59, of Cement City, Michigan, pleaded guilty on February 19, 2025, before District Judge Quraishi, to an Information charging him with conspiracy to commit wire fraud. Ronald Delucia, 70, of Wayne, New Jersey pleaded guilty today before District Judge Quraishi to a two-count Information charging conspiracy to commit honest services wire fraud (Count One) and conspiracy to commit wire fraud (Count Two).

    According to documents filed in this case and statements made in court:

    Dolphin was an employee of an airline that operated at Newark Airport. From at least as early as 2014 through in or about April 2017, he was an Airport Operations Hub Vendor Manager, and from in or about April 2017 through in or about November 2022, he was a Manger of Hub Business Partners. In his positions at the airline, Dolphin was able to influence which companies would be awarded certain contracts. Dolphin traded this influence for bribes and kickbacks. For example, Dolphin received bribes from Delucia, who was Chief Operating Officer and later Chief Executive Officer of a company that provided a range of services to airlines at Newark Airport, including the airline for which Dolphin worked. Delucia’s company paid Dolphin up to $31,500 per month, totaling $1 million, in exchange for Dolphin’s assistance in securing work for Delucia’s company. In addition, Dolphin received approximately $70,000 from another vendor in exchange for Dolphin’s influence in the process of awarding a busing contract. Dolphin received approximately $278,000 from another vendor in exchange for his influence in the process of awarding a snow removal contract. Finally, Dolphin received approximately $262,000 in exchange for his influence in the process of awarding an aircraft cleaning contract. In total, Dolphin received over $1.6 million in bribes and kickbacks.

    Wajda was the Chief Operating Officer for a Des Plaines, Illinois based company that provided various services to an airline at Newark Airport, including cabin cleaning services. In or about December 2021, the company had a contract with the airline to load provisions onto the airline’s planes. In or about March 2022, Wajda conspired with Delucia, agreeing that Delucia’s company would invoice Wajda’s company for a “dispatcher” to assist in the transportation of the provisions, as if Wajda’s company had subcontracted Delucia’s company to assist in dispatching the trucks transporting provisions to the aircraft. Delucia’s company then fraudulently invoiced Wajda’s company for work that Delucia’s company did not in fact provide, and Wajda’s company paid the invoices. Delucia then kicked back a portion of the fraudulently obtained funds to Wajda through Wajda’s personal limited liability company. Pursuant to this agreement, Delucia’s company invoiced Wajda’s company $150,000 for services that were never rendered. Wajda, in turn, received approximately $38,600 from this scheme.

    In addition to pleading guilty to the conduct involving Dolphin and Wajda, Delucia also admitted his role in conduct involving Alok Saksena, Anthony Rosalli, and Lovella Rogan, who each previously pleaded guilty in this investigation. Rosalli, Saksena, and Rogan all held positions with the airline that enabled them to influence which companies the airline would award certain contracts to at Newark Airport. The defendants conspired to receive bribes and kickbacks from Delucia’s company in exchange for helping Delucia’s company obtain lucrative airline contracts at Newark Airport.

    For example, in or about September 2021, Delucia’s company bid on a contract to renovate restrooms at Newark Airport. Saksena, Rosalli, and Rogan sat on the selection committee and each of them voted to award the contract to the company. In exchange for their  help in obtaining the $19.7 million restroom renovation contract, and with the expectation that they would use their positions to help the company obtain future contracts, Delucia’s company agreed to pay for significant renovations at their personal residences, including renovating and building bathrooms, renovating a deck, installing floors and sheetrock, and renovating a kitchen. Delucia’s company also gave them valuable items, including electronics and jewelry. The total value of the bribes paid was approximately $539,000 to Saksena; approximately $276,000 to Rosalli; and approximately $409,000 to Rogan.

    “The defendants exploited their positions within their respective companies to enrich themselves while defrauding others. Defendants’ commercial bribery and fraud corrupts the fairness of our economic system. We will hold to account those who break the law to line their own pockets.”

    Attorney for the United States Caroline Sadlowski

    “The schemes conceived and executed by these individuals to defraud the airline operating out of Newark Airport are reprehensible. The individuals who benefited with monetary and other high-value gain are being held responsible for the bribery and corruption they had hoped would fly under the radar,” Newark Acting Special Agent in Charge Terence G. Reilly said.

    “Blatant corruption like this erodes public trust and robs honest businesses of fair opportunities,” said Port Authority Inspector General John Gay. “This case is a stark example of individuals exploiting their positions for personal gain, putting greed ahead of the public good. We’re grateful for the partnership of the U.S. Attorney’s Office and the FBI as we root out fraud, hold bad actors accountable, and protect the integrity of the systems that keep our region moving.”

    Dolphin, Wajda, and Delucia each face a maximum sentence of 20 years’ imprisonment and a fine of up to $250,000 on each count. Sentencing for Dolphin is scheduled for June 24, 2025. Sentencing for Wajda is scheduled for June 24, 2025. Sentencing for Delucia is scheduled for July 1, 2025.

    Attorney for the United States Caroline Sadlowski credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, investigators from the Port Authority of New York & New Jersey Office of Inspector General, under the direction of Inspector General John Gay, and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the charges.

    The government is represented by Assistant U.S. Attorneys Katherine J. Calle and Francesca Liquori of the Special Prosecutions Division in Newark.

    All other co-conspirators identified in the Informations are presumed innocent until proven guilty. 

                                                                           ###

    Defense counsel: David Wikstrom, Esq., Counsel to Edward Dolphin

                                Paul Flannery, Esq., Counsel to James Wajda

                                Paul Faugno, Esq., Counsel to Ronald Delucia

    MIL Security OSI –

    February 26, 2025

  • MIL-OSI New Zealand: Rules to be eased to drive investment in electricity

    Source: New Zealand Government

    Restrictions on electricity lines companies investing in generation will be eased to help strengthen the energy network, Energy Minister Simon Watts and Associate Energy Minister Shane Jones say.

    “This action, which is part of the coalition agreement between New Zealand First and National, will give distribution businesses the confidence they need to invest in generation, helping to increase regional resilience and the national energy supply,” Mr Jones says.

    Distribution businesses are currently prohibited from owning more than 250 MW of generation connected to Transpower’s national grid, and/or more than 50 MW of generation connected to their own networks unless they operate that generation in a separate company or seek an exemption from the Electricity Authority. 

    “The current rules place undue costs on distributors, given that other regulations cover similar ground. The exemption process can also impose costs, as well as cause delay and uncertainty, which we are striving to avoid,” Mr Jones says.

    Safeguards in both the Electricity Authority’s Code and the Commerce Act that provide protections for competition will apply to distribution businesses’ investment in generation.

    Mr Watts says the change will further drive the investment needed in generation while continuing to preserve competition.

    “It is very difficult to grow the economy when energy security is at risk. This change is among a number of measures the Government is taking to ensure businesses and ordinary Kiwis have access to a reliable and secure energy supply.”

    The change will be included in the Energy and Electricity Security Bill which is expected to be introduced in the first half of this year.

    MIL OSI New Zealand News –

    February 26, 2025

  • MIL-OSI USA: Welch: “DOGE is pretty dumb, and pretty cruel, and pretty destructive the way it’s operating under Elon Musk.” 

    US Senate News:

    Source: United States Senator Peter Welch (D-Vermont)
    WASHINGTON, D.C. – U.S. Senator Peter Welch (D-Vt.) tonight took to the Senate floor to speak on President Trump and Elon Musk’s unconstitutional actions to dismantle federal institutions and called on Congress to protect federal agencies, programs, services, and employees that play an indispensable role in the lives of working Americans. 
    In his remarks, Senator Welch highlighted how the so-called ‘Department of Government Efficiency’s (DOGE) actions to dismantle the federal government have cost jobs and undercut federal programs in Vermont, including at Vermont’s Small Business Administration, for Vermont organizations that receive funding from USAID, and at the USDA office that helps towns recover from natural disasters like Vermont’s floods. 
    “We should all be outraged at the cruelty with which DOGE is operating. It’s cruel to the institutions that are important for each of our states and it’s cruel to the people who have been doing this work in good faith for so long,” said Senator Welch. “We’ve got to speak up and acknowledge that DOGE is destructive. We can embrace the effort to address waste, fraud and abuse. We can embrace the opportunity to streamline and save money, make things work better. But we can never abandon our commitment to the people of this country who work so hard.” 
    Watch Senator Welch’s speech below: 
    Read key excerpts from the Senator’s remarks: 
    “So, my first question with DOGE is why don’t you look where the money is, where the rip-offs are, instead of just sending out emails overnight telling people they’re fired, whose performance has been absolutely exemplary?” 
    “This is a situation that obviously is incredibly cruel. You’re working at the Department of Agriculture, you’re working at the NIH, you’re working on an USAID program, and life is going on and suddenly you get this email out of the blue—that it clearly is a mass email—but has a very specific impact on you, your life, your livelihood, and your hopes and dreams. I mean, that is just a savage, savage way to treat people who have been working in our various governmental agencies, and it has enormous impact on our communities.”  
    “This isn’t just about Elon Musk being a multibillionaire. No matter what happens it’s not going to really affect him. It’s about Elon Musk treating people with what I think is the utmost cruelty…Such disrespect for people who work hard at the VA, work hard in the NIH, work hard in the Department of Agriculture, work hard in the Department of Treasury. So, that element of this, we should all be shocked at.” 
    ■■■ 
    “The verdict is in—[DOGE] has been a colossal failure. It’s done immense damage to many of our institutions and inflicted immense pain on innocent people. Also, it’s not going to be successful in its stated goal of ‘reducing spending and wasteful spending’…But here’s my problem with DOGE: They’re not looking in the right places.” 
    “We have work to do on saving money, and we have places where it’s absolutely essential we act. DOGE is blind to all of those, all of those situations. And that’s disgraceful.” 
    ■■■ 
    Learn more about Senator Welch’s work by visiting his website or by following him on social media. 

    MIL OSI USA News –

    February 26, 2025

  • MIL-OSI USA: Padilla Highlights Threats to Election Security, Campaign Finance in First Business Meeting as Rules Committee Ranking Member

    US Senate News:

    Source: United States Senator Alex Padilla (D-Calif.)

    Padilla Highlights Threats to Election Security, Campaign Finance in First Business Meeting as Rules Committee Ranking Member

    WASHINGTON, D.C. — Today, U.S. Senator Alex Padilla (D-Calif.) joined his first business meeting as Ranking Member of the Senate Committee on Rules and Administration, where he highlighted the importance of free and fair elections, campaign finance reform, and Capitol security. The meeting focused on the committee funding resolution and committee rules for the 119th Congress.

    In his remarks, Senator Padilla emphasized that he will continue working to protect the right to vote, secure our elections, safeguard election workers, and push for essential funding to state and local governments for election administration. He called out the Trump Administration for decimating critical election security efforts by disbanding the Federal Bureau of Investigation’s foreign election interference task force, removing election security specialists at the Cybersecurity and Infrastructure Security Agency (CISA), and deploying President Trump and Elon Musk’s Department of Government Efficiency (DOGE) to the agency.

    Senator Padilla, California’s former Secretary of State, also underscored Americans’ strong support for curbing the massive influx of dark money and corporate spending in politics, calling the Citizens United decision a “complete disaster.” He blasted President Trump for his recent illegal firing of the Federal Elections Commission Chair and his executive order claiming to bring independent regulatory agencies under the control of the executive branch.

    Last week, Senator Padilla and Representative Joe Morelle (D-N.Y.-25) pressed senior officials at the Cybersecurity and Infrastructure Security Agency (CISA) for answers after reports indicated employees who previously worked on election misinformation and disinformation issues were placed on administrative leave. Padilla denounced the illegal firing of FEC Chair Ellen Weintraub and led 10 Democratic Senators to demand President Trump rescind this decision.

    Padilla’s full remarks, as prepared for delivery, are available here and below:

    Thank you, Chairman McConnell. I look forward to working with you and all the Members of the Rules Committee in this new role as Ranking Member. 

    I also want to thank Senators Klobuchar and Fischer for their leadership last Congress — including making key security improvements here at the Capitol following the January 6th insurrection.

    This Committee has a long history of working across party lines in support of the Senate and the legislative branch. Today I am committed to continuing that tradition with Chairman McConnell. 

    While the Capitol and Senate buildings may be our workplaces, ultimately, they belong to the American people. Americans spend their time and money — some traveling thousands of miles — to visit and exercise their First Amendment rights. For Americans from states red, blue, and purple, this Capitol means more than politics: it’s the embodiment of our democracy. It is our responsibility to maintain and secure the Capitol for them.

    Today’s action on the committee funding resolution for the 119th Congress gives us an early opportunity to come together. And while I wish we were able to provide more funding in certain instances, I am pleased that we worked in a bipartisan fashion on this effort.

    But in addition to our responsibilities to the administration of both the buildings and rules that allow this body to run, our Committee also plays a central role in our democracy – overseeing federal elections and campaign finance.

    Election Administration

    As California’s former Secretary of State, I know the importance of defending free and fair elections. I will always work to preserve voter access, protect election workers, ensure election security, and provide critical funding to the states. 

    Over the years, Congress has invested resources to help states start to modernize their election systems, but we have failed to provide the reliable funding that is needed. I hope we can find bipartisan consensus to help states and local governments manage the growing challenges of running elections.

    Unfortunately, just a few weeks in, the current Administration is taking a blowtorch to election security. Already, the Department of Justice has disbanded the Federal Bureau of Investigation’s foreign election interference task force while the Department of Homeland Security is removing election security specialists at the Cybersecurity & Infrastructure Security Agency (CISA).

    And now, President Trump and Elon Musk have sent DOGE’s inexperienced, unqualified staff — with a history of leaking security information and cybercrime — to CISA. Despite our inquiries and DOGE’s claims of transparency, this Committee and the public have no real information about the goals of this interference. And state and local election officials are losing the critical election security support that Congress has directed CISA to provide.

    It is my hope that moving forward, members on this committee from both parties will join me in strengthening election security — not weakening it.

    Campaign Finance

    At the same time, Americans overwhelmingly support efforts to roll back the tide of unregulated and secret money in politics. They are tired of their voices being drowned out by unlimited spending from corporations and billionaires. Yet today, an unelected billionaire who spent over 270 million dollars on the 2024 election sits in the Oval Office, issuing policy directives and accessing federal contracts and regulatory favors.

    The Citizens United decision was a complete disaster that continues to damage our democracy and must be repealed. Until then, Congress and the Federal Election Commission (FEC) should uphold the law and improve what we can.

    Unfortunately, President Trump is trying to destroy what few guardrails we have left. He illegally fired the Chair of the FEC and issued an Executive Order that gives White House operatives control over the FEC and other independent agencies. Congress created agencies like the FEC to follow the law independent of political pressure — not to be tools for handing out political favors or retribution on behalf of the White House.

    The FEC was created over 50 years ago following Watergate. Now, President Trump is opening the floodgates for a new golden age of corruption. As a committee, we must work to stop these power grabs before more damage is done.

    Thank you, Mr. Chairman.

    MIL OSI USA News –

    February 26, 2025

  • MIL-OSI United Kingdom: Plan to increase digital skills to deliver growth and opportunity for all

    Source: United Kingdom – Executive Government & Departments

    Press release

    Plan to increase digital skills to deliver growth and opportunity for all

    Government sets out first steps to break down barriers to digital inclusion affecting 1 in 4 Britons to help put more money into people’s pockets.

    Digital Inclusion Action Plan. We’re making sure everyone can be included in our digital world.

    • Tech Secretary: Improving digital skills essential to economic growth and success of Plan for Change 
    • Government sets out first steps to break down barriers to digital inclusion affecting 1 in 4 Britons to help put more money into people’s pockets 
    • Comes as Ministers secure backing of business, with Google vowing to deliver intensive digital skills training to support adults with low digital skills

    Millions of people in Britain are set to gain greater digital skills, as ministers tackle the scourge of digital exclusion currently holding too many people back from boosting their employability and accessing vital services.

    With daily tasks like speaking to a GP, applying for jobs, or renting and buying a house becoming increasingly digitalised, improved digital skills and access to technology hold the key to many of the government’s commitments in the Plan for Change. Businesses are also set to gain from greater skills, with too many employers currently struggling to recruit candidates with the digital skills required to help them grow their business and ultimately boost economic growth.  

    Research shows that people who are digitally excluded can face higher costs for things like home insurance, train travel and food – with people paying up to 25% more than consumers who are online.   

    The Technology Secretary Peter Kyle has set out today (26th February) urgent actions to begin fixing digital exclusion, publishing a new Digital Inclusion Action Plan that will help people in Britain reap the benefits of the online world.  

    This includes funding for local initiatives targeted to the most digitally-excluded groups, including the elderly and low-income households and partnering with inclusion charity Digital Poverty Alliance to provide laptops to people who are digitally excluded. 

    Technology Secretary Peter Kyle said: 

    The technological revolution we are living in is not only transforming everyone’s lives, but is advancing at breakneck speed, and will not slow down any time soon. 

    Leaving people behind in the process could threaten our mission to maximise technology for economic growth and better public services, which is central to our Plan for Change. 

    Only by making technology a widely accessible force for good can we make it a positive catalyst for societal change – whether that means helping a sick patient speak to a GP remotely or giving a young person the devices they need to apply for online jobs or renting a flat.  

    Charities, local and combined authorities will have access to funding for digital inclusion programmes, boosting communities’ digital access, skills and confidence in the online world. This new funding will empower Mayors and other local leaders to develop local solutions for the most digitally excluded groups in their areas, recognising the challenges they face will be different across the country. 

    It also includes pledges by key technology companies to help the government achieve its mission of breaking down the digital divide. Google and BT have pledged to deliver digital skills training to thousands in the UK while Vodafone has committed to help one million people by donating connectivity and technology, affordable services, and upskilling communities.   

    Telecoms Minister Chris Bryant said: 

    Digital services are a key part of everyday life. Banking, parking your car, searching for the best value insurance, these are all part of modern life. But digital innovation cannot be a privilege of the wealthy or the young. 

    From boosting digital skills to improving access to laptops, today we are setting out clear actions to give everyone across the UK the skills, confidence, and opportunity to make the most of the digital world and thrive in our modern society.

    Andy Burnham, Mayor of Greater Manchester said:

    There is still too much digital exclusion in the UK.  Technology should be accessible to all, and I welcome the recognition of Mayoral Combined Authorities as leaders in driving locally-led solutions. In Greater Manchester, we aim to empower every resident with the essential skills and tools to thrive in a digital world.

    Through a deeper collaboration with the government, we will unlock the potential of technology, building a fairer, more prosperous future for all, ensuring no one gets left behind.

    Mayor of the Liverpool City Region, Steve Rotheram, said: 

    Digital inclusion is not just about providing access to technology; it’s about unlocking opportunities for everyone. In the Liverpool City Region, we’ve seen first-hand the transformative power of ensuring that nobody is left behind in the digital age. 

    With this new`government initiative, we are taking a giant step forward in closing the digital divide, giving individuals the tools they need to succeed and thrive, whether that’s through education, employment, or improving their everyday lives.

    Figures show that many in Britain risk being left behind if no action is taken, with 1.6 million people in the UK currently living offline, meaning they lack the devices, connection or skills to get online, and around a quarter of the UK population struggle to use online services. 

    Widespread access to technology will boost economic growth and raise living standards in every part of Britain, equipping people with better skills to enter a competitive workforce and giving investors the confidence that the British public will exploit tech innovation.

    Notes to editors

    Industry pledges

    Google

    Google will develop a new partnership with Department for Science, Innovation and Technology (DSIT) to deliver intensive digital skills training to support adults with low digital skills, helping them succeed in the modern work environment.

    CityFibre

    CityFibre has committed to installing 170 connections to 170 premises in Norfolk, Suffolk, Leicestershire, Kent, East and West Sussex, Buckinghamshire, Cambridgeshire and surrounding areas by 2030. As part of this, these premises — including residential and community hubs — will be given their first 6-month broadband package for free.

    Virgin Media O2

    Virgin Media O2 has already connected over 350,000 digitally excluded people. It is committing to increasing this to 1 million people by the end of 2025, through expanded provision of data and devices to those that need it.

    Vodafone

    Vodafone will help 1 million people cross the digital divide in 2025 through donating connectivity and technology, affordable services, and upskilling communities. This includes a commitment to maintain their social tariff product offerings. To support closing the digital infrastructure divide, Vodafone will continue to invest in rolling out their network to the whole of the UK.

    WightFibre

    WightFibre commits to providing free or discounted broadband to community groups and charities, including community centres, digital hubs and village halls, on the Isle of Wight. These community organisations will promote that they have free Wi-Fi available on-site for public use.

    Good Things Foundation, Vodafone and Deloitte

    Good Things Foundation, Vodafone, and Deloitte are working together with the government to lead the development of a charter for responsible device donation. This will establish common principles for businesses and organisations to commit to: increasing the number of devices donated to digitally excluded people; reducing electronic waste; and promoting circularity.

    BT

    Connectivity:

    • BT has already connected over 300,000 digitally excluded households through its social tariffs, which also include a lower £15 tariff for ‘zero income’ households, and will continue to offer these tariffs to millions of people on Universal Credit who are eligible for them.

    Community WiFi:

    • BT Group has the country’s largest public WiFi network, with some 5.5 million EE and BT hub locations (in households and commercial premises) available for eligible customers to connect to. BT and EE have agreed to pilot 2 new approaches to extend the use of this network to a much larger number of digitally excluded households:

      1. by providing log-ins for free WiFi to eligible families through charity and public sector partnerships
      2. by providing community WiFi services, free at the point of use, at a much larger number of libraries and community centres, including working with government to identify and prioritise connections to 500 community hubs in deprived areas

    • To succeed, this initiative will need support from local partners, which the pilot phase of the project will seek to ensure.

    Skills:

    • BT commits to providing digital training to thousands of older people and children in 2025, through their partnership with AbilityNet and their Work Ready programme.
    • BT commits to providing 500 adults with disabilities with digital devices, data and support in 2025, through their partnership with Keyring.

    Openreach

    • Openreach is building ultrafast ultra-reliable Full Fibre broadband to 25 million premises by December 2026 and ultimately aiming to reach as many as 30 million by 2030 if the right investment conditions exist.  

    • As we build, we’ll work with the government to upgrade connectivity to at least 500 community hubs in deprived areas, helping people across the country to get online, with the majority delivered by the end of 2026. We’ll also work with our communications provider customers to offer the services these sites need, as soon as our network’s been built.

    Sky

    Through Sky Up — Sky’s social impact programme — Sky will commit to supporting 70 Sky Up Hubs across the UK help people bridge the digital divide by providing reliable internet connections, tech equipment and digital training in partnership with local charities in 2025.

    Three

    • To support those facing digital exclusion, Three will donate over 2 million GB of data to an estimated 80,000 people by 2026.
    • To help bridge the digital divide, Three’s Discovery digital-skills training programme seeks to reach over 270,000 people by 2030.
    • Through the Reconnected scheme, Three aims to save around 30,000 unused devices to help disadvantaged people get connected.

    Supportive quotes:

    Helen Milner OBE, Group Chief Executive, Good Things Foundation, said:

    For the first time ever, digital inclusion is firmly on the national agenda. It’s fantastic to see recognition from the heart of government that urgent and joined-up action is needed to enable millions of people to overcome barriers to good work, good health and realising their full potential. As the UK’s leading digital inclusion charity, Good Things Foundation is delighted to see recognition of the vital role hyper local community organisations and civil society has played in fixing the digital divide, and a clear vision for how the national and devolved government can amplify and build on that. This is a major milestone in our push for an inclusive and prosperous society where no-one is left behind.

    Debbie Weinstein, President of Google EMEA and Interim Head of Google UK, said:

    It’s essential that we bridge the digital divide and equip everyone with the skills they need to harness the opportunities of the online world. We’re excited to be a part of the Digital Inclusion Action Plan – building on our legacy of training over 1 million Brits in digital skills. Ensuring that everyone benefits from helpful, productivity boosting AI-powered technologies is key to growth and to what we do.

    Nicki Lyons, Chief Corporate Affairs and Sustainability Officer at Vodafone UK, said:

    Vodafone has long been an advocate of greater digital inclusion across society. During our time working in this space, we have learnt that the scale of our progress is directly linked to the success of our partnerships. Which is why we are delighted to be joining forces with Good Things Foundation, Deloitte and the UK government.

    Through the Digital Inclusion Action plan, we are establishing a common set of principles for businesses and organisations to commit to when it comes to responsible device donation. Not only will this help increase the number of devices donated to those who are digitally excluded, but it will also help reduce electronic waste and promote circularity. All while laddering up to Vodafone’s pledge to help 1 million people cross the digital divide by 2025, as part of a wider 4 million target through our everyone.connected programme.

    Councillor Abi Brown OBE, Chairman of the Local Government Association’s Improvement and Innovation Board, said:

    Councils are critical to tackling digital inclusion, providing strategic leadership of local support, and running council-led initiatives, such as digital skills improvement support and refurbishing old equipment to donate or lend to residents who rely on devices.

    Our world is increasingly digital by default, with banking, democratic functions, job applications, benefits and other public services being moved online. Digital skills, equipment and reliable connectivity, as well as the confidence to be online, are crucial to enable people to fully participate in society and engage in education and employment.

    Given their role as local leaders, councils want to go much further, building on their work with local voluntary and community sector organisations to reach socially excluded groups.

    The Digital Inclusion Action Plan recognises that local authorities are key to the delivery of digital inclusion ambitions, and we look forward to helping government empower all areas to support all those who are underserved by the move to a modern digital society.

    Elizabeth Anderson, Chief Executive Officer, Digital Poverty Alliance, said:

    The Digital Poverty Alliance is delighted to be playing a practical role by distributing government devices to those in need – and more widely we’re pleased to see so many key aspects of digital inclusion tackled in a comprehensive way in this Action Plan. Leadership from government, combined with tangible support for charities and local authorities and firm commitments from industry, sets a firm basis towards tackling an issue that prevents millions of people from accessing key services online and achieving their potential. Our work together on this pilot programme will provide real help right now and demonstrate the huge impact that device redistribution schemes have on families and households.

    Antony Walker, Deputy CEO, techUK said:

    Everyone, regardless of their background, should have access to the digital skills they need to be empowered not just at work but also in their day-to-day life. In the digital age we live in today, it is imperative that everyone is at ease using digital technologies.

    The UK tech sector stands behind the government’s mission to close the digital divide. Many of our members are already tackling digital exclusion head on and this Action Plan will support their efforts and enable businesses to do even more.

    Liz Williams MBE, Chief Executive, FutureDotNow, said:

    Today 21 million adults of working age don’t have the full suite of digital essentials. Leading businesses are already working with FutureDotNow, coalescing around the Workforce Digital Skills Charter to ensure everyone has the essential digital capability for work today and our rapidly evolving digital future. This clear direction from government will help accelerate progress as we work to close the workforce essential digital skills gap.

    Nicola Green, Chief Communications and Corporate Affairs Officer at Virgin Media O2, said: 

    We welcome the government’s Digital Inclusion Action Plan and its leadership to drive digital inclusion across the UK.

    I’m proud that Virgin Media O2 is recognised in the Action Plan, having already connected more than 350,000 digitally excluded people through our pioneering programmes, such as the National Databank and Community Calling, which have provided devices, data, and digital skills to help people access essential online services – from applying for work, booking medical appointments, accessing training courses and keeping in touch with loved ones.

    We look forward to working with government to further tackle digital exclusion so more people can access the internet and transform their lives.

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    Published 26 February 2025

    MIL OSI United Kingdom –

    February 26, 2025

  • MIL-OSI USA: Wyden, Colleagues Urge Federal Courts to Affirm That Congress Holds the Power to Crack Down on Money Laundering

    US Senate News:

    Source: United States Senator Ron Wyden (D-Ore)
    February 25, 2025
    Washington, D.C. — U.S. Senator Ron Wyden, D-Ore., joined his colleagues in filing amicus briefs that called on two federal courts to affirm that Congress holds the power to crack down on anonymous money laundering under the bipartisan Corporate Transparency Act passed in 2021. 
    The four-year-old law is considered the most important anti-money laundering law passed in two decades. It ensures law enforcement and national security officials are able to learn the true identities of people who own or control U.S. corporations and other legal entities used as shell companies to conceal illegal activities. By identifying these under-the-radar financial criminals, the federal government can better combat terrorist financing, money laundering, sanctions evasion, proliferation financing, tax evasion, and other illicit finance carried out through shell companies. In addition to holding U.S. corporations accountable, the law plays an essential role in protecting U.S. national security and public safety. 
    “Anonymous shell corporations harm the United States’ national security, foreign affairs, foreign and interstate commerce, and tax interests. Such shell companies often operate in multiple layers to hide their true owners and violations of key sanctions, money-laundering, and tax laws. Allowing illicit money to be hidden through corporate forms also undermines public safety and law enforcement efficacy on a national and international scale,” wrote the lawmakers in their amicus briefs to the U.S. Court of Appeals for the 4th and 5th Circuits.
    In their amicus briefs, the lawmakers argued that Congress has robust powers under Article I to legislate on national security, tax, foreign affairs, and interstate and foreign commerce matters – all of which fall under the law. As a result of enacting the law, Congress has been able to engage in careful oversight, including through testimonies, reports, and committee hearings, over anonymous actors who have used shell companies to exploit the American financial system and launder their unlawful gains. 
    In addition to Wyden, the amicus briefs were led by Senators Sheldon Whitehouse, D-R.I., Elizabeth Warren, D-Mass., and Jack Reed, D-R.I., and Representative Maxine Waters, D-Calif.
    The lawmakers filed briefs in Texas Top Cop Shop v. Bondi, a case at the U.S. Court of Appeals for the 5th Circuit, and Community Associations Institute v. Treasury, a case for the 4th Circuit. In January 2025, the members filed a similar amicus brief in Firestone v. Yellen, a case for the 9th Circuit. In April 2024, the lawmakers filed their first amicus brief in National Small Business United v. Yellen, a case for the 11th Circuit.
    Wyden is a longtime champion of holding corporations accountable. In 2017, Wyden introduced bipartisan legislation to prevent individuals in Congress from using anonymous shell corporations to engage in illicit activities. In 2019, Wyden reintroduced legislation to combat money laundering by requiring corporations to disclose their beneficial owners. In 2024, Wyden launched an investigation into the Geneva-based multinational bank Pictet for potential ongoing tax evasion by a U.S. citizen under criminal investigation. 
    The text of the 4th Circuit brief is here.
    The text of the 5th Circuit Brief is here.

    MIL OSI USA News –

    February 26, 2025

  • MIL-OSI USA: Tuberville Protects American Manufacturing

    US Senate News:

    Source: United States Senator Tommy Tuberville (Alabama)
    WASHINGTON – U.S. Senator Tommy Tuberville (R-AL) joined U.S. Senator Todd Young (R-IN) in introducing the Leveling the Playing Field 2.0 Act, legislation that would strengthen U.S. trade remedy laws and ensure they remain effective tools to fight against unfair trade practices and protect American businesses.
    This legislation would improve the U.S. trade remedy system and respond to repeat offenders and serial cheaters, leveling the playing field for American manufacturing. It also responds to China’s unfair trade practices, specifically its Belt and Road Initiative (BRI), which provides subsidies to China-based or China-operated companies doing business in countries outside of China. 
    “China has been bending the rules for decades,” said Sen. Tuberville. “We have to fight back. Alabama’s manufacturers work hard, and as long as the playing field is level, they can outcompete anyone in the world. This bill is one step toward ensuring that the rules are enforced and China has to play fair.”
    “Our bill will protect American jobs and combat China’s unfair trade practices,” said Sen. Young. “China has distorted the free market by dumping undervalued products and subsidizing industries, actions designed to harm American businesses and workers. This legislation will help level the playing field to ensure the United States can outcompete the Chinese Communist Party.”
    U.S. Sens. Tuberville and Young were joined by U.S. Sens. Jim Banks (R-IN), Tammy Baldwin (D-WI), Tom Cotton (R-AR), Jon Fetterman (D-PA), Ruben Gallego (D-AZ), Kirsten Gillibrand (D-NY), Lindsey Graham (R-SC), Amy Klobuchar (D-MN), Bernie Moreno (R-OH), Eric Schmitt (R-MO), Tina Smith (D-MN), Elizabeth Warren (D-MA), and Roger Wicker (R-MS) in introducing the legislation.
    U.S. Representatives Beth Van Duyne (R-TX-24) and Terri Sewell (D-AL-7) are leading companion legislation in the House of Representatives.
    The legislation is endorsed by the American Iron and Steel Institute, the Steel Manufacturers Association, and the Kitchen Cabinet Manufacturers Association.
    Sen. Tuberville cosponsored this legislation in the 118th Congress. 
    Full text of the legislation can be found here.
    BACKGROUND:
    The Leveling the Playing Field 2.0 Act would revise the U.S. antidumping (AD) and countervailing duty (CVD) laws to ensure international trade regulations and requirements do not unfairly favor international competitors, especially in the steel industry. The Leveling the Playing Field 2.0 Act would update U.S. trade remedy laws to establish the new concept of “successive investigations,” which would improve the U.S. trade remedy system’s efforts to curb circumvention efforts from bad actors designed to undercut our domestic industries and increase market share. 
    American companies are on the receiving end of China’s increasingly predatory economic behavior. In recent years, China’s unfair trade practices have culminated in grave economic consequences that affect American workers. For example, Chinese-supported companies move portions of production to other countries to circumvent American duties, a practice known as “country hopping.” China’s BRI also unfairly subsidizes products made in other countries, rather than just in China. In addition to competing with these unfair trade practices, American companies have to contend with long lead times before the Department of Commerce initiates a new anti-circumvention inquiry.
    Around half of the unfair trade cases are in the steel industry. However, these unfair trade cases also affect industries that make engines, furniture, hardwood plywood, pipes and tubes, wood moldings, magnesium, paper, shrimp, carrier bags, kitchen cabinets, quartz countertops, tires, and many others.
    The Leveling the Playing Field 2.0 Act pushes back against China’s anti-free market practices by providing the Department of Commerce with more tools to stop circumvention tactics. These tools include:
    Establishing the concept of “successive investigations” under AD and CVD laws. The new AD/CVD investigations would improve the effectiveness of the trade remedy law to combat repeat offenders by making it easier for petitioners to bring new cases when production moves to another country             
    Expediting timelines for successive investigations and creating new factors for the International Trade Commission to consider about the relationship between recently completed trade cases and successive trade cases for the same imported product
    Providing the Department of Commerce the authority to apply CVD law to subsidies provided by a government to a company operating in a different country
    Imposing statutory requirements for anti-circumvention inquiries to clarify the process and timeline
    Specifying deadlines for preliminary and final determinations
    Thanks to the state’s rich natural resources and abundance of mineral deposits, Alabama has a proud history as a metals and manufacturing leader. According to the Alabama Department of Commerce, there are more than 1,100 metal manufacturing companies in the state, including national and global leaders in steel, pipelines, composites, and specialty metals. Those companies employ more than 45,000 Alabamians and export nearly $1.4 billion worth of metal manufactured goods per year. Today, Alabama is home to three of the top seven largest pipe manufacturing companies in the nation.
    Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.

    MIL OSI USA News –

    February 26, 2025

  • MIL-OSI USA: Hagerty Introduces Trump’s Nominee for Director of the Office of Science and Technology Policy

    US Senate News:

    Source: United States Senator for Tennessee Bill Hagerty
    Michael Kratsios will advance U.S. technological dominance and national security
    WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Appropriations Committee, today appeared before a Senate Commerce Committee hearing to introduce Michael Kratsios, President Donald Trump’s nominee to be Director of the Office of Science and Technology Policy.

    *Click the photo above or here to watch*
    Remarks as prepared for delivery:
    Today, I am privileged to introduce Michael Kratsios, President Trump’s nominee to be Director of the Office of Science and Technology Policy.
    The OSTP Director advises the President on key “industries of the future,” including artificial intelligence, quantum computing, 5G, advanced manufacturing, biotechnology, and more. Indeed, Michael and I worked closely together on 5G and our telecommunications infrastructure when I served in my previous role as U.S. Ambassador to Japan.
    Now, more than ever, emerging technologies present us with immense opportunities to maintain America’s global dominance. At such a critical time, we cannot afford to make policy errors here in Washington.
    That’s exactly why we need a leader of Michael’s caliber serving in this vital role.
    While AI has rapidly ascended to become one America’s most important policy priorities, Michael had the foresight to see this technology’s potential nearly a decade ago. And he has been working tirelessly on the issue ever since.
    His impressive record of public service in the field of science and technology policy include his past service as Chief Technology Officer of the United States and the Under Secretary of Defense for Research and Engineering. In these roles and others, he coordinated public-private partnerships and served as the architect of national strategies on AI and quantum technologies.
    After leaving public service, he served as Managing Director of Scale AI, helping it become one of the most valuable and well respected privately held AI companies in the world.
    Michael’s research outside of the government provided the first quantifiable evidence of how banned Chinese technologies were still procured by state and local governments across the country. He also brought to light the significant risks posed by PRC-manufactured ship-to-shore cranes in American ports.
    America must remain the world leader in scientific and technological innovation. Our national security, our liberty, and our prosperity depend on it. Michael understands this mission, and that’s why I wholeheartedly support his nomination. Thanks to my colleagues here today for giving Michael your careful consideration.

    MIL OSI USA News –

    February 26, 2025

  • MIL-OSI USA News: Addressing the Threat to National Security from Imports of Copper

    Source: The White House

    class=”has-text-align-left”>By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862) (Trade Expansion Act), it is hereby ordered:

    Section 1.  Policy.  Copper is a critical material essential to the national security, economic strength, and industrial resilience of the United States.  Copper, scrap copper, and copper’s derivative products play a vital role in defense applications, infrastructure, and emerging technologies, including clean energy, electric vehicles, and advanced electronics.  The United States faces significant vulnerabilities in the copper supply chain, with increasing reliance on foreign sources for mined, smelted, and refined copper.

    The United States has ample copper reserves, yet our smelting and refining capacity lags significantly behind global competitors.  A single foreign producer dominates global copper smelting and refining, controlling over 50 percent of global smelting capacity and holding four of the top five largest refining facilities.  This dominance, coupled with global overcapacity and a single producer’s control of world supply chains, poses a direct threat to United States national security and economic stability.

    It is the policy of the United States to ensure a reliable, secure, and resilient domestic copper supply chain.  The United States’ increasing dependence on foreign sources of copper, particularly from a concentrated number of supplier nations, along with the risk of foreign market manipulation, necessitate action under section 232 of the Trade Expansion Act to determine whether imports of copper, scrap copper, and copper’s derivative products threaten to impair national security.

    Sec. 2.  Investigation Into the National Security Impact of Copper Imports.  (a)  The Secretary of Commerce shall initiate an investigation under section 232 of the Trade Expansion Act to determine the effects on national security of imports of copper in all forms, including but not limited to:

    (i)    raw mined copper;

    (ii)   copper concentrates;

    (iii)  refined copper;

    (iv)   copper alloys;

    (v)    scrap copper; and

    (vi)   derivative products.

    (b)  In conducting the investigation described in subsection (a) of this section, the Secretary of Commerce shall assess the factors set forth in 19 U.S.C. 1862(d), labeled “Domestic production for national defense; impact of foreign competition on economic welfare of domestic industries,” as well as other relevant factors, including:

    (i)     the current and projected demand for copper in United States defense, energy, and critical infrastructure sectors;

    (ii)    the extent to which domestic production, smelting, refining, and recycling can meet demand;

    (iii)   the role of foreign supply chains, particularly from major exporters, in meeting United States demand;

    (iv)    the concentration of United States copper imports from a small number of suppliers and the associated risks;

    (v)     the impact of foreign government subsidies, overcapacity, and predatory trade practices on United States industry competitiveness;

    (vi)    the economic impact of artificially suppressed copper prices due to dumping and state-sponsored overproduction;

    (vii)   the potential for export restrictions by foreign nations, including the ability of foreign nations to weaponize their control over refined copper supplies;

    (viii)  the feasibility of increasing domestic copper mining, smelting, and refining capacity to reduce import reliance; and

    (ix)    the impact of current trade policies on domestic copper production and whether additional measures, including tariffs or quotas, are necessary to protect national security.

    Sec. 3.  Required Actions.  (a)  The Secretary of Commerce shall consult with the Secretary of Defense, the Secretary of the Interior, the Secretary of Energy, and the heads of other relevant executive departments and agencies as determined by the Secretary of Commerce to evaluate the national security risks associated with copper import dependency.

    (b)  Within 270 days of the date of this order, the Secretary of Commerce shall submit a report to the President that includes:

    (i)    findings on whether United States dependence on copper imports threatens national security;

    (ii)   recommendations on actions to mitigate such threats, including potential tariffs, export controls, or incentives to increase domestic production; and

    (iii)  policy recommendations for strengthening the United States copper supply chain through strategic investments, permitting reforms, and enhanced recycling initiatives.

    Sec. 4.  General Provisions.  (a)  Nothing in this order shall be construed to impair or otherwise affect:

    (i)   the authority granted by law to an executive department or agency, or the head thereof; or

    (ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

    (b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

    (c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

    THE WHITE HOUSE,

        February 25, 2025.

    MIL OSI USA News –

    February 26, 2025

  • MIL-OSI USA News: Fact Sheet: President Donald J. Trump Addresses the Threat to National Security from Imports of Copper

    Source: The White House

    SECURING AMERICA’S COPPER SUPPLY: Today, President Donald J. Trump signed an Executive Order launching an investigation into how copper imports threaten America’s national security and economic stability.

    • The Order directs the Secretary of Commerce to initiate a Section 232 investigation under the Trade Expansion Act of 1962.
    • This investigation will assess the national security risks arising from the United States’ increasing dependence on imported copper, in all its forms, and the potential need for trade remedies to safeguard domestic industry.
    • The investigation will culminate in a report identifying vulnerabilities in the copper supply chain and providing recommendations to enhance the resilience of America’s domestic copper industry.

     
    ADDRESSING THE THREAT TO NATIONAL SECURITY: President Trump recognizes that an overreliance on foreign copper, in all its forms, could jeopardize U.S. defense capabilities, infrastructure development, and technological innovation.

    • Copper is an essential material for national security, economic strength, and industrial resilience.
      • Copper plays a vital role in defense applications, infrastructure, and emerging technologies like clean energy, electric vehicles, and advanced electronics.
      • Copper is the Defense Department’s second-most utilized material.
    • Despite possessing ample copper reserves, America’s smelting and refining capacity lags behind global competitors like China, which controls over 50% of global smelting.
      • The United States isn’t even in the top five nations in copper smelting capacity.
    • America’s reliance on copper imports has surged from virtually 0% in 1991 to 45% of consumption in 2024, heightening risks to supply chain security.
    • Foreign overcapacity in smelting and refining, coupled with potential export restrictions from other nations, threaten to disrupt copper availability for U.S. defense and industry needs.

     
    STRENGTHENING AMERICAN INDUSTRY: This Executive Order builds on previous actions taken by the Trump Administration to ensure U.S. trade policy serves the nation’s long-term interests.

    • On Day One, President Trump initiated his America First Trade Policy to make America’s economy great again.
    • President Trump signed proclamations to close existing loopholes and exemptions to restore a true 25% tariff on steel and elevate the tariff to 25% on aluminum.
    • President Trump implemented a 10% additional tariff on imports from China in response to China’s role in the border crisis.  
    • President Trump unveiled the “Fair and Reciprocal Plan” on trade to restore fairness in U.S. trade relationships and counter non-reciprocal trade agreements.   

    President Trump signed a memorandum to safeguard American innovation, including the consideration of tariffs to combat digital service taxes (DSTs), fines, practices, and policies that foreign governments levy on American companies.

    MIL OSI USA News –

    February 26, 2025

  • MIL-OSI: First Commerce Bancorp, Inc. Announces Additions to Its Board and Management

    Source: GlobeNewswire (MIL-OSI)

    LAKEWOOD, N.J., Feb. 25, 2025 (GLOBE NEWSWIRE) — First Commerce Bancorp, Inc., (the “Company”) (OTC: CMRB), the holding company for First Commerce Bank, (the “Bank”), proudly announces the addition of several individuals to the Bank’s Board of Directors and Management Team. The Bank has added two new members to its Board of Directors: Mr. Aaron Bookman and Mr. Stanley Koreyva.

    Commenting on their attributes and experience, Chairman Thomas P. Bovino remarked, “Mr. Bookman, a seasoned corporate finance executive and CPA, brings over 25 years of experience leading large public companies. With deep roots in the Lakewood community, he has demonstrated a strong commitment to both shareholder value and corporate governance. His expertise in financial strategy and operational leadership will enhance the Board’s ability to navigate today’s dynamic financial landscape. Mr. Koreyva, a former senior banking executive, brings many years of successful and disciplined banking and regulatory experience to the Board with a fresh and independent perspective regarding relationship building and value creation. His extensive familiarity of industry challenges will assist the independent Board members in understanding the intricate aspects of today’s banking environment. We welcome both gentlemen to our Board of Directors and look forward to their contributions in the many diverse facets of the complex industry and communities that we endeavor to serve.”

    Additionally, the Bank has recently bolstered its Business Development and Risk Management teams by hiring several successful senior level Business Development Officers, Community Banking Specialists and Risk Professionals. With respect to Business Development and Relationship Management, the Bank has hired: Mr. Leonard Allen, VP/Business Banking Officer; Mr. Daniel Dunn, VP/Treasury Management Officer; Mr. Matteo DiGrigoli, Retail Sales & Service Officer; Ms. Wendy Glatz-Akmentins, AVP/Branch Manager and Mr. Logan Cheow, AVP/Relationship Manager. The hiring of these experienced bankers demonstrates the Bank’s continued commitment to a superior customer experience by offering quality personalized service to our business and retail clients.

    Further, as the Bank continues its organic growth by providing a more diverse menu of products and services for its clients, it is imperative that the Bank maintain robust risk management protocols. To that effect, the Bank acquired the services of Daniel Beagle, SVP/Chief Risk Officer to oversee the Risk Management function of the Bank. Mr. Beagle has a proven track record in effectively managing risk over his 30+ years in the banking and insurance industries.  

    On the acquisition of their talents, President & CEO Donald Mindiak commented, “through the disruption created by recent merger and acquisition activity within our industry, the Bank was able to secure the services of these exceptionally talented and experienced banking professionals. Each brings a distinctly unique and comprehensive skill set to our Bank, with a dedication to professionalism and service to customer and community alike. We are extremely proud of these hires and look forward to their positive contribution of creating an enhanced customer service experience as well as a heightened level of value creation for our shareholder base.”

    About First Commerce Bancorp, Inc.

    First Commerce Bancorp, Inc, is a financial services organization headquartered in Lakewood, New Jersey. The Bank, the Company’s wholly owned subsidiary, provides businesses and individuals a wide range of loans, deposit products and retail and commercial banking services through its branch network located in Allentown, Bordentown, Closter, Englewood, Fairfield, Freehold, Jackson, Lakewood, Robbinsville and Teaneck, New Jersey. For more information, please go to www.firstcommercebk.com.

    Forward-Looking Statements

    This release, like many written and oral communications presented by First Commerce Bancorp Inc., and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies 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. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “could,” “may,” “should,” “will,” “would,” or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.

    In addition to the factors previously disclosed in prior Bank communications and those identified elsewhere, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the impact of changes in interest rates and in the credit quality and strength of underlying collateral and the effect of such changes on the market value of First Commerce Bank’s investment securities portfolio; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which First Commerce Bank operates and in which its loans are concentrated, including the effects of declines in housing market values; the effects of the recent turmoil in the banking industry (including the failures of two financial institutions); inflation; customer acceptance of the Bank’s products and services; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with certain corporate initiatives; economic conditions; and the impact, extent and timing of technological changes, capital management activities, and actions of governmental agencies and legislative and regulatory actions and reforms and the impact of a potential shutdown of the federal government.        

    Media Contact:

    Donald Mindiak
    President and Chief Executive Officer 
    dmindiak@firscommercebk.com

    The MIL Network –

    February 26, 2025

  • MIL-OSI: CPS Announces Fourth Quarter and Full Year 2024 Earnings

    Source: GlobeNewswire (MIL-OSI)

    • Revenues of $105.3 million for the fourth quarter and $393.5 million for 2024
    • Net income of $19.2 million, or $0.79 per diluted share for 2024
    • Total portfolio balance of $3.491 billion, highest in company history
    • New contract purchases of $1.682 billion for the full year 2024

    LAS VEGAS, NV, Feb. 25, 2025 (GLOBE NEWSWIRE) — Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced earnings of $5.1 million, or $0.21 per diluted share, for its fourth quarter ended December 31, 2024.

    Revenues for the fourth quarter of 2024 were $105.3 million, an increase of $13.3 million, or 14.5%, compared to $92.0 million for the fourth quarter of 2023. Total operating expenses for the fourth quarter of 2024 were $98.0 million compared to $82.1 million for the 2023 period.   Pretax income for the fourth quarter of 2024 was $7.4 million compared to pretax income of $9.8 million in the fourth quarter of 2023.

    For the twelve months ended December 31, 2024 total revenues were $393.5 million compared to $352.0 million for the twelve months ended December 31, 2023, an increase of approximately $41.5 million, or 11.8%. Total operating expenses for the twelve months ended December 31, 2024 were $366.1 million, compared to $290.9 million for the twelve months ended December 30, 2023. Pretax income for the twelve months ended December 31, 2024 was $27.4 million, compared to $61.1 million for the twelve months ended December 31, 2023. Net income for the twelve months ended December 31, 2024 was $19.2 million compared to $45.3 million for the twelve months ended December 31, 2023.

    During the fourth quarter of 2024, CPS purchased $457.8 million of new contracts compared to $445.9 million during the third quarter of 2024 and $301.8 million during the fourth quarter of 2023. The total number of contracts purchased for 2024 totaled $1.682 billion compared to $1.358 billion in 2023. The Company’s receivables totaled $3.491 billion as of December 31, 2024, an increase from $3.330 billion as of September 31, 2024 and an increase from $2.970 billion as of December 31, 2023.

    Annualized net charge-offs for the fourth quarter of 2024 were 8.02% of the average portfolio as compared to 7.74% for the fourth quarter of 2023. Delinquencies greater than 30 days (including repossession inventory) were 14.85% of the total portfolio as of December 31, 2024, compared to 14.55% as of December 31, 2023.

    “New loan originations grew by 24% in 2024 over the prior year, leading to solid top line revenue growth,” said Charles E. Bradley, Chief Executive Officer. “With positive trends in loan originations and operating efficiencies, we remain optimistic in all aspects of our business going into 2025.”

    Conference Call

    CPS announced that it will hold a conference call on February 26, 2025 at 1:00 p.m. ET to discuss its fourth quarter 2024 operating results.

    Those wishing to participate can pre-register for the conference call at the following link https://register.vevent.com/register/BI34e818cf84a24e118241657af74dd2d4. Registered participants will receive an email containing conference call details for dial-in options. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the schedule start time. A replay will be available beginning two hours after conclusion of the call for 12 months via the Company’s website at https://ir.consumerportfolio.com/investor-relations.

    About Consumer Portfolio Services, Inc.

    Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives.

    Forward-looking statements in this news release include the Company’s recorded figures representing allowances for remaining expected lifetime credit losses, its estimates of fair value (most significantly for its receivables accounted for at fair value), its provision for credit losses, its entries offsetting the preceding, and figures derived from any of the preceding. In each case, such figures are forward-looking statements because they are dependent on the Company’s estimates of losses to be incurred in the future. The accuracy of such estimates may be adversely affected by various factors, which include the following: possible increased delinquencies; repossessions and losses on retail installment contracts; incorrect prepayment speed and/or discount rate assumptions; possible unavailability of qualified personnel, which could adversely affect the Company’s ability to service its portfolio; possible increases in the rate of consumer bankruptcy filings, which could adversely affect the Company’s rights to collect payments from its portfolio; other changes in government regulations affecting consumer credit; possible declines in the market price for used vehicles, which could adversely affect the Company’s realization upon repossessed vehicles; and economic conditions in geographic areas in which the Company’s business is concentrated. Any or all of such factors also may affect the Company’s future financial results, as to which there can be no assurance. Any implication that the results of the most recently completed quarter are indicative of future results is disclaimed, and the reader should draw no such inference. Factors such as those identified above in relation to losses to be incurred in the future may affect future performance.

    Investor Relations Contact

    Danny Bharwani, Chief Financial Officer

    949-753-6811

    Consumer Portfolio Services, Inc. and Subsidiaries
    Condensed Consolidated Statements of Operations
    (In thousands, except per share data)
    (Unaudited)
                   
      Three months ended   Twelve months ended
      December 31,   December 31,
        2024       2023       2024       2023  
    Revenues:              
    Interest income $ 98,150     $ 83,260     $ 363,962     $ 329,219  
    Mark to finance receivables measured at fair value   5,000       6,000       21,000       12,000  
    Other income   2,153       2,718       8,544       10,795  
        105,303       91,978       393,506       352,014  
    Expenses:              
    Employee costs   23,889       23,157       96,192       88,148  
    General and administrative   14,422       13,777       54,710       50,001  
    Interest   52,522       40,277       191,257       146,631  
    Provision for credit losses   (728 )     (1,600 )     (5,307 )     (22,300 )
    Other expenses   7,847       6,523       29,223       28,437  
        97,952       82,134       366,075       290,917  
    Income before income taxes   7,351       9,844       27,431       61,097  
    Income tax expense   2,206       2,657       8,228       15,754  
    Net income $ 5,145     $ 7,187     $ 19,203     $ 45,343  
                   
    Earnings per share:              
    Basic $ 0.24     $ 0.34     $ 0.90     $ 2.17  
    Diluted $ 0.21     $ 0.29     $ 0.79     $ 1.80  
                   
    Number of shares used in computing earnings per share:              
    Basic   21,412       21,136       21,292       20,896  
    Diluted   24,274       24,879       24,325       25,218  
                                   
    Condensed Consolidated Balance Sheets
    (In thousands)
    (Unaudited)
           
      December 31,   December 31,
        2024       2023  
    Assets:      
    Cash and cash equivalents $ 11,713     $ 6,174  
    Restricted cash and equivalents   125,684       119,257  
    Finance receivables measured at fair value   3,313,767       2,722,662  
           
    Finance receivables   5,420       27,553  
    Allowance for finance credit losses   (433 )     (2,869 )
    Finance receivables, net   4,987       24,684  
           
           
    Deferred tax assets, net   1,010       3,736  
    Other assets   36,707       27,233  
      $ 3,493,868     $ 2,903,746  
           
    Liabilities and Shareholders’ Equity:      
    Accounts payable and accrued expenses $ 70,151     $ 62,544  
    Warehouse lines of credit   410,898       234,025  
    Residual interest financing   99,176       49,875  
    Securitization trust debt   2,594,384       2,265,446  
    Subordinated renewable notes   26,489       17,188  
        3,201,098       2,629,078  
           
    Shareholders’ equity   292,770       274,668  
      $ 3,493,868     $ 2,903,746  
                   

    Operating and Performance Data ($ in millions)

        At and for the   At and for the
        Three months ended   Twelve months ended
        December 31,   December 31,
          2024       2023       2024       2023  
                     
    Contracts purchased   $ 457.81     $ 301.80     $ 1,681.94     $ 1,357.75  
    Contracts securitized   $ 298.42     $ 306.70       1,256.13       1,352.11  
                     
    Total portfolio balance (1)   $ 3,490.96     $ 2,970.07     $ 3,490.96     $ 2,970.07  
    Average portfolio balance (1)   $ 3,445.52     $ 2,958.95       3,209.99       2,913.57  
                     
                     
    Delinquencies (1)                
    31+ Days     12.11 %     12.29 %        
    Repossession Inventory     2.74 %     2.26 %        
    Total Delinquencies and Repo. Inventory     14.85 %     14.55 %        
                     
    Annualized Net Charge-offs as % of Average Portfolio (1)     8.02 %     7.74 %     7.62 %     6.53 %
                     
    Recovery rates (1), (2)     27.2 %     34.3 %     30.1 %     39.2 %
                     
      For the   For the
      Three months ended   Twelve months ended
      December 31,   December 31,
      2024   2023   2024   2023
        $ (3)     % (4)     $ (3)     % (4)     $ (3)     % (4)     $ (3)     % (4)
    Interest income $ 98.15     11.4 %   $ 83.26     11.3 %   $ 363.96     11.3 %   $ 329.22     11.3 %
    Mark to finance receivables measured at fair value   5.00     0.6 %     6.00     0.8 %     21.00     0.7 %     12.00     0.4 %
    Other income   2.15     0.2 %     2.72     0.4 %     8.54     0.3 %     10.80     0.4 %
    Interest expense   (52.52 )   -6.1 %     (40.28 )   -5.4 %     (191.26 )   -6.0 %     (146.63 )   -5.0 %
    Net interest margin   52.78     6.1 %     51.70     7.0 %     202.25     6.3 %     205.38     7.0 %
    Provision for credit losses   0.73     0.1 %     1.60     0.2 %     5.31     0.2 %     22.30     0.8 %
    Risk adjusted margin   53.51     6.2 %     53.30     7.2 %     207.56     6.5 %     227.68     7.8 %
    Other operating expenses (5)   (46.16 )   -5.4 %     (43.46 )   -5.9 %     (180.13 )   -5.6 %     (166.59 )   -5.7 %
    Pre-tax income $ 7.35     0.9 %   $ 9.84     1.3 %   $ 27.43     0.9 %   $ 61.10     2.1 %
                           
    (1) Excludes third party portfolios.
    (2) Wholesale auction liquidation amounts (net of expenses) as a percentage of the account balance at the time of sale.
    (3) Numbers may not add due to rounding.
    (4) Annualized percentage of the average portfolio balance. Percentages may not add due to rounding.
    (5) Total pre-tax expenses less provision for credit losses and interest expense.
     

    The MIL Network –

    February 26, 2025

  • MIL-OSI: Flywire Reports Fourth Quarter and Fiscal-Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Fourth Quarter Revenue Increased 17.0% Year-over-Year

    Fourth Quarter Revenue Less Ancillary Services Increased 17.4% Year-over-Year

    Company Provides First Quarter and Fiscal-Year 2025 Outlook

    BOSTON, Feb. 25, 2025 (GLOBE NEWSWIRE) — Flywire Corporation (Nasdaq: FLYW) (“Flywire” or the “Company”) a global payments enablement and software company, today reported financial results for its fourth quarter and fiscal-year ended December 31, 2024.

    “Our fourth quarter results capped off another strong year for Flywire as we continued to grow the business while navigating a complex macro environment with significant headwinds,” said Mike Massaro, CEO of Flywire, “We continued to focus on business and bottom line growth and generated 17% revenue growth and 680 bps adjusted EBITDA margin growth in the quarter.”

    “Looking ahead, we’re focused on driving effectiveness and discipline throughout our global business. We will be undertaking an operational and business portfolio review. The operational review will help ensure we are efficient and effective, with a focus on driving productivity and optimizing investments across all areas. Our comprehensive business portfolio review will focus on Flywire’s core strengths – such as complex, large-value payment processing, our global payment network, and verticalized software.”

    “One of the efficiency measures we are undertaking is a restructuring, which impacts approximately 10% of our workforce. It is difficult to say goodbye to so many FlyMates, and I want to thank them for their hard work as we endeavor to support them throughout this transition.”

    “As we refocus our teams on areas that we believe will drive Flywire’s future growth, we are excited to announce the acquisition of Sertifi, which is expected to accelerate the expansion of our fast-growing Travel vertical. Sertifi augments our travel product offering with a leading dedicated hotel property management system integration and expands our footprint across more than 20,000 hotel locations worldwide.”

    Fourth Quarter 2024 Financial Highlights:

    GAAP Results

    • Revenue increased 17.0% to $117.6 million in the fourth quarter of 2024, compared to $100.5 million in the fourth quarter of 2023.
    • Gross Profit increased to $74.3 million, resulting in Gross Margin of 63.2%, for the fourth quarter of 2024, compared to Gross Profit of $61.8 million and Gross Margin of 61.5% in the fourth quarter of 2023.
    • Net loss was ($15.9) million in the fourth quarter of 2024, compared to net income of $1.3 million in the fourth quarter of 2023.

    Key Operating Metrics and Non-GAAP Results

    • Number of clients grew by 16%year-over-year, with over 180 new clients added in the fourth quarter of 2024.
    • Total Payment Volume increased 27.6% to $6.9 billion in the fourth quarter of 2024, compared to $5.4 billion in the fourth quarter of 2023.
    • Revenue Less Ancillary Services increased 17.4% to $112.8 million in the fourth quarter of 2024, compared to $96.1 million in the fourth quarter of 2023.
    • Adjusted Gross Profit increased to $75.6 million, up 19.1% compared to $63.5 million in the fourth quarter of 2023. Adjusted Gross Margin was 67.0% in the fourth quarter of 2024 compared to 66.1% in the fourth quarter of 2023.
    • Adjusted EBITDA increased to $16.7 million in the fourth quarter of 2024, compared to $7.7 million in the fourth quarter of 2023. Our adjusted EBITDA margins increased 680 bps year-over-year to 14.8% in the fourth quarter of 2024.

    2024 Business Highlights:

    • We signed more than 800 new clients in fiscal-year 2024 surpassing the 700 new clients signed in fiscal-year 2023.
    • Our transaction payment volume grew by 23.6% year-over-year to $29.7 billion
    • Our global education vertical, continued to strengthen in a number of core geographies, with U.K. region outperformance driven by new clients and net revenue retention; accompanied by growth in our network of international recruitment agents to further connect our ecosystem of clients, agents and payers
    • Our travel vertical grew into our second largest vertical in terms of revenue less ancillary services, and we generated strong growth most notably with EMEA and APAC based Tour Operators and DMC providers, particularly in our new sub vertical of ocean experiences.
    • Our business-to-business vertical continued its strong organic growth, enhanced by the acquisition of Invoiced.
    • We further optimized our global payment network to enable vertical growth with a focus on new acceptance rails, market localization and expanded network coverage. This included continued support of our strategic payer markets like India and China, enhancing our offerings to digitize the disbursement of student loans from India and strengthening partnerships with India’s three largest banks.
    • We repurchased 2.3 million shares for approximately $44 million, inclusive of commissions, under our share repurchase program announced on August 6th, 2024.

    First Quarter and Fiscal-Year 2025 Outlook:

    “Effective execution drove both revenue growth and margin expansion in 2024, in spite of significant macroeconomic challenges” said Flywire’s CFO, Cosmin Pitigoi. “For our 2025 financial outlook, we project revenue less ancillary services growth of 10-14% on an FX-neutral (constant currency) basis, and a 200-400 basis point increase in adjusted EBITDA margin. We expect approximately 3 percentage points of headwind from FX throughout the year.  This guidance excludes the contributions from the Sertifi acquisition, as well as any potential lessening of the macroeconomic headwinds. We are particularly encouraged by the anticipated performance of our combined travel vertical, as well as the emerging B2B vertical, both of which are expected to exceed our historical growth rate for the applicable vertical”

    Based on information available as of February 25, 2025, Flywire anticipates the following results for the first quarter and fiscal-year 2025 excluding Sertifi.

      Fiscal-Year 2025
    FX-Neutral GAAP Revenue Growth 9-13% YoY
    FX-Neutral Revenue Less Ancillary Services Growth 10-14% YoY
    Adjusted EBITDA* Margin Growth +200-400 bps YoY
       
      First Quarter 2025
    FX-Neutral GAAP Revenue Growth 10-13% YoY
    FX-Neutral Revenue Less Ancillary Services Growth 11-14% YoY
    Adjusted EBITDA* Margin Growth +300-600 bps YoY
       

    “Based on Sertifi’s historical financials, we currently expect the acquisition to provide incremental revenue of $3.0-4.0 million and $30.0-40.0 million in revenue  in the first quarter and fiscal year 2025, respectively.  In addition, we currently expect the Sertifi acquisition to have a flat to slightly positive effect on adjusted EBITDA and positive (low single–digit million) effect on adjusted EBITDA, in the first quarter and fiscal year 2025, respectively, as we plan to invest in the combined solution during 2025.”

    *Flywire has not provided a quantitative reconciliation of forecasted Adjusted EBITDA Margin growth to forecasted GAAP Net Income Margin growth within this earnings release because Flywire is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include, but are not limited to income taxes which are directly impacted by unpredictable fluctuations in the market price of Flywire’s stock and in foreign currency exchange rates.

    These statements are forward-looking and actual results may differ materially. Refer to the “Safe Harbor Statement” below for information on the factors that could cause Flywire’s actual results to differ materially from these forward-looking statements.

    Conference Call

    The Company will host a conference call to discuss fourth quarter and fiscal-year 2024 financial results today at 5:00 pm ET. Hosting the call will be Mike Massaro, CEO, Rob Orgel, President and COO, and Cosmin Pitigoi, CFO. The conference call can be accessed live via webcast from the Company’s investor relations website at https://ir.flywire.com/. A replay will be available on the investor relations website following the call.

    Note Regarding Share Repurchase Program

    Repurchases under the Company’s share repurchase program (the Repurchase Program) may be made from time to time through open market purchases, in privately negotiated transactions or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions, including Rule 10b-18. The timing, value and number of shares repurchased will be determined by the Company in its discretion and will be based on various factors, including an evaluation of current and future capital needs, current and forecasted cash flows, the Company’s capital structure, cost of capital and prevailing stock prices, general market and economic conditions, applicable legal requirements, and compliance with covenants in the Company’s credit facility that may limit share repurchases based on defined leverage ratios. The Repurchase Program does not obligate the Company to purchase a specific number of, or any, shares.  The Repurchase Program does not expire and may be modified, suspended or terminated at any time without notice at the Company’s discretion.

    Key Operating Metrics and Non-GAAP Financial Measures

    Flywire uses non-GAAP financial measures to supplement financial information presented on a GAAP basis. The Company believes that excluding certain items from its GAAP results allows management to better understand its consolidated financial performance from period to period and better project its future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, Flywire believes these non-GAAP financial measures provide its stakeholders with useful information to help them evaluate the Company’s operating results by facilitating an enhanced understanding of the Company’s operating performance and enabling them to make more meaningful period to period comparisons. There are limitations to the use of the non-GAAP financial measures presented here. Flywire’s non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in Flywire’s industry, may calculate non-GAAP financial measures differently, limiting the usefulness of those measures for comparative purposes.

    Flywire uses supplemental measures of its performance which are derived from its consolidated financial information, but which are not presented in its consolidated financial statements prepared in accordance with GAAP. These non-GAAP financial measures include the following:

    • Revenue Less Ancillary Services.  Revenue Less Ancillary Services represents the Company’s consolidated revenue in accordance with GAAP after excluding (i) pass-through cost for printing and mailing services and (ii) marketing fees. The Company excludes these amounts to arrive at this supplemental non-GAAP financial measure as it views these services as ancillary to the primary services it provides to its clients.
    • Adjusted Gross Profit and Adjusted Gross Margin.  Adjusted gross profit represents Revenue Less Ancillary Services less cost of revenue adjusted to (i) exclude pass-through cost for printing services, (ii) offset marketing fees against costs incurred and (iii) exclude depreciation and amortization, including accelerated amortization on the impairment of customer set-up costs tied to technology integration. Adjusted Gross Margin represents Adjusted Gross Profit  divided by Revenue Less Ancillary Services. Management believes this presentation supplements the GAAP presentation of Gross Margin with a useful measure of the gross margin of the Company’s payment-related services, which are the primary services it provides to its clients.
    • Adjusted EBITDA.  Adjusted EBITDA represents EBITDA further adjusted by excluding (i) stock-based compensation expense and related payroll taxes, (ii) the impact from the change in fair value measurement for contingent consideration associated with acquisitions,(iii) gain (loss) from the remeasurement of foreign currency, (iv) indirect taxes related to intercompany activity, (v) acquisition related transaction costs, and (vi) employee retention costs, such as incentive compensation, associated with acquisition activities. Management believes that the exclusion of these amounts to calculate Adjusted EBITDA provides useful measures for period-to-period comparisons of the Company’s business. We calculate adjusted EBITDA margin by dividing adjusted EBITDA by Revenue Less Ancillary Services.
    • Revenue Less Ancillary Services at Constant Currency.  Revenue Less Ancillary Services at Constant Currency represents Revenue Less Ancillary Services adjusted to show presentation on a constant currency basis. The constant currency information presented is calculated by translating current period results using prior period weighted average foreign currency exchange rates.  Flywire  analyzes Revenue Less Ancillary Services on a constant currency basis to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations.
    • Non-GAAP Operating Expenses – Non-GAAP Operating Expenses represents GAAP Operating Expenses adjusted by excluding (i) stock-based compensation expense and related payroll taxes, (ii) depreciation and amortization, (iii) acquisition related transaction costs, if applicable, (iv) employee retention costs, such as incentive compensation, associated with acquisition activities and (v) the impact from the change in fair value measurement for contingent consideration associated with acquisitions.

    These non-GAAP financial measures are not meant to be considered as indicators of performance in isolation from or as a substitute for the Company’s revenue, gross profit, gross margin or net income (loss), or operating expenses prepared in accordance with GAAP and should be read only in conjunction with financial information presented on a GAAP basis. Reconciliations of Revenue Less Ancillary Services, Revenue Less Ancillary Services at Constant Currency, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA and non-GAAP Operating Expenses to the most directly comparable GAAP financial measure are presented below. Flywire encourages you to review these reconciliations in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future fiscal periods, Flywire may exclude such items and may incur income and expenses similar to these excluded items. Flywire has not provided a quantitative reconciliation of forecasted Adjusted EBITDA Margin growth to forecasted GAAP Net Income growth within this earnings release because it is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include but are not limited to income taxes which are directly impacted by unpredictable fluctuations in the market price of Flywire’s stock and in foreign exchange rates.  For figures in this press release reported on an “FX-Neutral basis,” Flywire calculates the year-over-year impact of foreign currency movements using prior period weighted average foreign currency rates.

    About Flywire

    Flywire is a global payments enablement and software company. We combine our proprietary global payments network, next-gen payments platform and vertical-specific software to deliver the most important and complex payments for our clients and their customers.

    Flywire leverages its vertical-specific software and payments technology to deeply embed within the existing A/R workflows for its clients across the education, healthcare and travel vertical markets, as well as in key B2B industries. Flywire also integrates with leading ERP systems, such as NetSuite, so organizations can optimize the payment experience for their customers while eliminating operational challenges.

    Flywire supports approximately 4,500** clients with diverse payment methods in more than 140 currencies across 240 countries and territories around the world. Flywire is headquartered in Boston, MA, USA with global offices. For more information, visit www.flywire.com. Follow Flywire on X (formerly known as Twitter), LinkedIn and Facebook.

    **Excludes clients from Flywire’s Invoiced and Sertifi acquisitions

    Safe Harbor Statement

    This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding Flywire’s future operating results and financial position, Flywire’s business strategy and plans, market growth, and Flywire’s objectives for future operations. Flywire intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terms such as, but not limited to, “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. Such forward-looking statements are based upon current expectations that involve risks, changes in circumstances, assumptions, and uncertainties. Important factors that could cause actual results to differ materially from those reflected in Flywire’s forward-looking statements include, among others, Flywire’s future financial performance, including its expectations regarding FX-Neutral GAAP Revenue Growth, FX-Neutral Revenue Less Ancillary Services Growth, and Adjusted EBITDA Margin Growth and foreign exchange rates.  Risks that may cause actual results to differ materially from these forward looking statements include, but are not limited to: Flywire’s  ability to execute its business plan and effectively manage its growth; Flywire’s cross-border expansion plans and ability to expand internationally; anticipated trends, growth rates, and challenges in Flywire’s business and in the markets in which Flywire operates; the  sufficiency of Flywire’s cash and cash equivalents to meet its liquidity needs;  political, economic, foreign currency exchange rate, inflation, legal, social and health risks, that may affect Flywire’s business or the global economy; Flywire’s beliefs and objectives for future operations; Flywire’s ability to develop and protect its brand; Flywire’s ability to maintain and grow the payment volume that it processes; Flywire’s ability to further attract, retain, and expand its client base; Flywire’s ability to develop new solutions and services and bring them to market in a timely manner; Flywire’s expectations concerning relationships with third parties, including financial institutions and strategic partners; the effects of increased competition in Flywire’s markets and its ability to compete effectively; recent and future acquisitions or investments in complementary companies, products, services, or technologies; Flywire’s ability to enter new client verticals, including its relatively new business-to-business  sector; Flywire’s expectations regarding anticipated technology needs and developments and its ability to address those needs and developments with its solutions; Flywire’s expectations regarding its ability to meet existing performance obligations and maintain the operability of its solutions; Flywire’s expectations regarding the effects of existing and developing laws and regulations, including with respect to payments and financial services, taxation, privacy and data protection; economic and industry trends, projected growth, or trend analysis; the effects of global events and geopolitical conflicts, including without limitation the continuing hostilities in Ukraine and involving Israel; Flywire’s ability to adapt to  changes in U.S. federal income or other tax laws or the interpretation of tax laws, including the Inflation Reduction Act of 2022;  Flywire’s ability to attract and retain qualified employees; Flywire’s ability to maintain, protect, and enhance its intellectual property; Flywire’s ability to maintain the security and availability of its solutions; the increased expenses associated with being a public company; the future market price of Flywire’s common stock; and other factors that are described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Flywire’s Annual Report on Form 10-K for the year ended December 31, 2023, and Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, which are on file with the Securities and Exchange Commission (SEC) and available on the SEC’s website at https://www.sec.gov/. Additional factors may be described in those sections of Flywire’s Annual Report on Form 10-K for the year ended December 31, 2024, expected to be filed in the first quarter of 2025. The information in this release is provided only as of the date of this release, and Flywire undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.

    Contacts

    Investor Relations:
    Masha Kahn
    ir@Flywire.com

    Media:
    Sarah King
    Media@Flywire.com

    Condensed Consolidated Statements of Operations and Comprehensive Loss
    (Unaudited) (Amounts in thousands, except share and per share amounts)
                   
      Three Months Ended December 31,   Twelve Months Ended December 31,
        2024       2023       2024       2023  
    Revenue $ 117,550     $ 100,545     $ 492,144     $ 403,094  
    Costs and operating expenses:              
    Payment processing services costs   41,384       36,780       177,490       147,339  
    Technology and development   17,370       16,898       66,636       62,028  
    Selling and marketing   33,353       28,830       129,435       107,621  
    General and administrative   31,218       28,065       125,838       107,624  
    Total costs and operating expenses   123,325       110,573       499,399       424,612  
    Loss from operations $ (5,775 )   $ (10,028 )   $ (7,255 )   $ (21,518 )
    Other income (expense):              
    Interest expense   (135 )     (92 )     (538 )     (372 )
    Interest income   4,872       5,638       21,440       13,349  
    Gain (loss) from remeasurement of foreign currency   (13,866 )     7,707       (11,787 )     4,189  
    Total other income (expense), net   (9,129 )     13,253       9,115       17,166  
    Income (loss) before provision for income taxes   (14,904 )     3,225       1,860       (4,352 )
    Provision (benefit) for income taxes   995       1,938       (1,040 )     4,214  
    Net Income (Loss) $ (15,899 )   $ 1,287     $ 2,900     $ (8,566 )
    Foreign currency translation adjustment   (7,330 )     3,731       (3,594 )     3,232  
    Unrealized losses on available-for-sale debt securities, net $ (441 )   $ —     $ 208     $ —  
    Total other comprehensive income (loss) $ (7,771 )   $ 3,731     $ (3,386 )   $ 3,232  
    Comprehensive income (loss) $ (23,670 )   $ 5,018     $ (486 )   $ (5,334 )
    Net loss attributable to common stockholders – basic and diluted $ (15,899 )   $ 1,287     $ 2,900     $ (8,566 )
    Net loss per share attributable to common stockholders – basic $ (0.13 )   $ 0.01     $ 0.02     $ (0.07 )
    Net loss per share attributable to common stockholders – diluted $ (0.12 )   $ 0.01     $ 0.02     $ (0.07 )
    Weighted average common shares outstanding – basic   124,463,252       121,690,938       124,269,820       114,828,494  
    Weighted average common shares outstanding – diluted   128,924,166       128,877,877       129,339,462       114,828,494  
                                   
    Condensed Consolidated Balance Sheets
    (Unaudited) (Amounts in thousands, except share amounts)
           
      December 31,   December 31,
        2024       2023  
    Assets      
    Current assets:      
    Cash and cash equivalents $ 495,242     $ 654,608  
    Restricted cash   —       —  
    Short-term investments   115,848       —  
    Accounts receivable, net   23,703       18,215  
    Unbilled receivables, net   15,453       10,689  
    Funds receivable from payment partners   90,110       113,945  
    Prepaid expenses and other current assets   22,528       18,227  
    Total current assets   762,884       815,684  
    Long-term investments   50,125       —  
    Property and equipment, net   17,160       15,134  
    Intangible assets, net   118,684       108,178  
    Goodwill   149,558       121,646  
    Other assets   24,035       19,089  
    Total assets $ 1,122,446     $ 1,079,731  
           
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 15,353     $ 12,587  
    Funds payable to clients   217,788       210,922  
    Accrued expenses and other current liabilities   49,297       43,315  
    Deferred revenue   7,337       6,968  
    Total current liabilities   289,775       273,792  
    Deferred tax liabilities   12,643       15,391  
    Other liabilities   5,261       4,431  
    Total liabilities   307,679       293,614  
    Commitments and contingencies (Note 16)      
    Stockholders’ equity:      
    Preferred stock, $0.0001 par value; 10,000,000 shares authorized as of December 31, 2024 and 2023; and no shares issued and outstanding as of December 31, 2024 and 2023   —       —  
    Voting common stock, $0.0001 par value; 2,000,000,000 shares authorized as of December 31, 2024 and December 31, 2023; 126,853,852 shares issued and 122,182,878 shares outstanding as of December 31, 2024; 123,010,207 shares issued and 120,695,162 shares outstanding as of December 31, 2023   13       11  
    Non-voting common stock, $0.0001 par value; 10,000,000 shares authorized as of December 31, 2024 and December 31, 2023; 1,873,320 shares issued and outstanding as of December 31, 2024 and December 31, 2023   —       1  
    Treasury voting common stock, 4,670,974 and 2,315,045 shares as of December 31, 2024 and December 31, 2023, respectively, held at cost   (46,268 )     (747 )
    Additional paid-in capital   1,033,958       959,302  
    Accumulated other comprehensive income   (2,066 )     1,320  
    Accumulated deficit   (170,870 )     (173,770 )
    Total stockholders’ equity   814,767       786,117  
    Total liabilities and stockholders’ equity $ 1,122,446     $ 1,079,731  
                   
    Condensed Consolidated Statement of Cash Flows
    (Unaudited) (Amounts in thousands)
           
      Twelve Months Ended December 31,
        2024       2023  
    Cash flows from operating activities:      
    Net income (loss) $ 2,900     $ (8,566 )
    Adjustments to reconcile net loss to net cash used in operating activities:      
    Depreciation and amortization   17,363       15,764  
    Stock-based compensation expense   64,933       43,726  
    Amortization of deferred contract costs   972       1,789  
    Change in fair value of contingent consideration   (978 )     380  
    Deferred tax provision (benefit)   (8,794 )     72  
    Provision for uncollectible accounts   (83 )     326  
    Non-cash interest expense   230       298  
    Non-cash interest income   (1,435 )     —  
    Changes in operating assets and liabilities, net of acquisitions:      
    Accounts receivable   (5,292 )     (2,082 )
    Unbilled receivables   (4,764 )     (5,394 )
    Funds receivable from payment partners   23,835       (50,975 )
    Prepaid expenses, other current assets and other assets   (5,322 )     (4,279 )
    Funds payable to clients   6,867       86,616  
    Accounts payable, accrued expenses and other current liabilities   3,302       5,548  
    Contingent consideration   (93 )     (467 )
    Other liabilities   (1,543 )     (1,260 )
    Deferred revenue   (630 )     (871 )
    Net cash provided by operating activities   91,468       80,625  
           
    Cash flows from investing activities:      
    Acquisition of businesses, net of cash acquired   (45,230 )     (32,764 )
    Purchase of debt securities   (193,927 )     —  
    Sale of debt securities   29,598       —  
    Capitalization of internally developed software   (5,317 )     (5,004 )
    Purchases of property and equipment   (924 )     (1,009 )
    Net cash (used in) investing activities   (215,800 )     (38,777 )
    Cash flows from financing activities:      
    Proceeds from issuance of common stock under public offering, net of underwriter discounts and commissions   —       261,119  
    Payments of costs related to public offering   —       (1,062 )
    Payment of debt issuance costs   (783 )     —  
    Contingent consideration paid for acquisitions   (1,032 )     (1,207 )
    Payments of tax withholdings for net settled equity awards   (797 )     (8,483 )
    Purchases of treasury stock   (43,740 )     —  
    Proceeds from the issuance of stock under Employee Stock Purchase Plan   3,108       2,691  
    Proceeds from exercise of stock options   5,613       10,360  
    Net cash provided by (used in) financing activities   (37,631 )     263,418  
    Effect of exchange rates changes on cash and cash equivalents   2,597       (1,835 )
    Net increase (decrease) in cash, cash equivalents and restricted cash   (159,366 )     303,431  
    Cash, cash equivalents and restricted cash, beginning of year $ 654,608     $ 351,177  
    Cash, cash equivalents and restricted cash, end of year $ 495,242     $ 654,608  
                   
    Reconciliation of Non-GAAP Financial Measures
    (Unaudited) (Amounts in millions, except percentages)
                     
        Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
          2024       2023       2024       2023  
    Revenue   $ 117.6     $ 100.5     $ 492.1     $ 403.1  
    Adjusted to exclude gross up for:                
    Pass-through cost for printing and mailing     (4.5 )     (4.0 )     (15.9 )     (19.4 )
    Marketing fees     (0.3 )     (0.4 )     (2.0 )     (2.2 )
    Revenue Less Ancillary Services   $ 112.8     $ 96.1     $ 474.2     $ 381.5  
    Payment processing services costs     41.4       36.8       177.5       147.3  
    Hosting and amortization costs within technology and development expenses     1.9       1.9       7.7       8.4  
    Cost of Revenue   $ 43.3     $ 38.7     $ 185.2     $ 155.7  
    Adjusted to:                
    Exclude printing and mailing costs     (4.5 )     (4.0 )     (15.9 )     (19.4 )
    Offset marketing fees against related costs     (0.3 )     (0.4 )     (2.0 )     (2.2 )
    Exclude depreciation and amortization     (1.3 )     (1.7 )     (5.9 )     (6.7 )
    Adjusted Cost of Revenue   $ 37.2     $ 32.6     $ 161.4     $ 127.4  
    Gross Profit   $ 74.3     $ 61.8     $ 306.9     $ 247.4  
    Gross Margin     63.2 %     61.5 %     62.4 %     61.4 %
    Adjusted Gross Profit   $ 75.6     $ 63.5     $ 312.8     $ 254.1  
    Adjusted Gross Margin     67.0 %     66.1 %     66.0 %     66.6 %
                                     
        Three Months Ended
    December 31, 2024    		   Twelve Months Ended
    December 31, 2024
        Transaction   Platform and
    Other Revenues    		   Revenue   Transaction   Platform and
    Other Revenues    		   Revenue
    Revenue   $ 95.3     $ 22.3     $ 117.6     $ 410.2     $ 81.9     $ 492.1  
    Adjusted to exclude gross up for:                        
    Pass-through cost for printing and mailing     —       (4.5 )     (4.5 )     —       (15.9 )     (15.9 )
    Marketing fees     (0.3 )     —       (0.3 )     (2.0 )     —       (2.0 )
    Revenue Less Ancillary Services   $ 95.0     $ 17.8     $ 112.8     $ 408.2     $ 66.0     $ 474.2  
    Percentage of Revenue     81.0 %     19.0 %     100.0 %     83.4 %     16.6 %     100.0 %
    Percentage of Revenue Less Ancillary Services     84.2 %     15.8 %     100.0 %     86.1 %     13.9 %     100.0 %
                             
        Three Months Ended
    December 31, 2023    		   Twelve Months Ended
    December 31, 2023
        Transaction   Platform and
    Other Revenues    		   Revenue   Transaction   Platform and
    Other Revenues    		   Revenue
    Revenue   $ 81.9     $ 18.6     $ 100.5     $ 329.7     $ 73.4     $ 403.1  
    Adjusted to exclude gross up for:                        
    Pass-through cost for printing and mailing     —       (4.0 )     (4.0 )     —       (19.4 )     (19.4 )
    Marketing fees     (0.4 )     —       (0.4 )     (2.2 )     —       (2.2 )
    Revenue Less Ancillary Services   $ 81.5     $ 14.6     $ 96.1     $ 327.5     $ 54.0     $ 381.5  
    Percentage of Revenue     81.5 %     18.5 %     100.0 %     81.8 %     18.2 %     100.0 %
    Percentage of Revenue Less Ancillary Services     84.8 %     15.2 %     100.0 %     85.8 %     14.2 %     100.0 %
                                                     
    FX Neutral Revenue Less Ancillary Services                      
    (unaudited) (in millions)                            
        Three Months Ended
    December 31,    		       Twelve Months Ended
    December 31,    		    
          2024       2023     Growth Rate     2024       2023     Growth Rate
    Revenue   $ 117.6     $ 100.5       17 %   $ 492.1     $ 403.1       22 %
    Ancillary services     (4.8 )     (4.4 )         (17.9 )     (21.6 )    
    Revenue Less Ancillary Services     112.8       96.1       17 %     474.2       381.5       24 %
    Effects of foreign currency rate fluctuations     (1.1 )     —           (2.3 )     —      
    FX Neutral Revenue Less Ancillary Services   $ 111.7     $ 96.1       16 %   $ 471.9     $ 381.5       24 %
                                                     
    EBITDA and Adjusted EBITDA                
    (Unaudited) (in millions)                
        Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
          2024       2023       2024       2023  
    Net loss   $ (15.9 )   $ 1.3     $ 2.9     $ (8.6 )
    Interest expense     0.1       0.1       0.5       0.4  
    Interest income     (4.8 )     (5.6 )     (21.4 )     (13.3 )
    Provision for income taxes     1.0       1.9       (1.0 )     4.2  
    Depreciation and amortization     5.0       4.3       18.5       16.4  
    EBITDA     (14.6 )     2.0       (0.5 )     (0.9 )
    Stock-based compensation expense and related taxes     16.8       12.9       65.8       45.2  
    Change in fair value of contingent consideration     0.0       —       (1.0 )     0.4  
    (Gain) loss from remeasurement of foreign currency     13.9       (7.7 )     11.8       (4.2 )
    Indirect taxes related to intercompany activity     0.5       —       0.7       0.2  
    Acquisition related transaction costs     0.1       0.4       0.6       0.4  
    Acquisition related employee retention costs     —       0.1       0.5       0.9  
    Adjusted EBITDA   $ 16.7     $ 7.7     $ 77.9     $ 42.0  
                                     
    Reconciliation of Non-GAAP Operating Expenses            
    (Unaudited) (in millions)            
                             
        Three Months Ended December 31,   Twelve Months Ended December 31,
    (in millions)   2024   2023   2024   2023
    GAAP Technology and development   $ 17.4     $ 16.9     $ 66.6     $ 62.0  
    (-) Stock-based compensation expense and related taxes     (3.1 )     (2.5 )     (11.8 )     (9.2 )
    (-) Depreciation and amortization     (2.1 )     (2.3 )     (7.4 )     (8.4 )
    (-) Acquisition related employee retention costs     —       0.3       —       (0.5 )
    Non-GAAP Technology and development   $ 12.2     $ 12.4     $ 47.4     $ 43.9  
                   
    GAAP Selling and marketing   $ 33.4     $ 28.8     $ 129.5     $ 107.6  
    (-) Stock-based compensation expense and related taxes     (4.8 )     (3.2 )     (18.3 )     (12.4 )
    (-) Depreciation and amortization     (2.2 )     (1.3 )     (8.2 )     (5.2 )
    (-) Acquisition related employee retention costs     —       (0.2 )     (0.5 )     (0.4 )
    Non-GAAP Selling and marketing   $ 26.4     $ 24.1     $ 102.5     $ 89.6  
                   
    GAAP General and administrative   $ 31.2     $ 28.0     $ 125.8     $ 107.6  
    (-) Stock-based compensation expense and related taxes     (8.9 )     (7.2 )     (35.7 )     (23.6 )
    (-) Depreciation and amortization     (0.8 )     (0.7 )     (3.0 )     (2.8 )
    (-) Change in fair value of contingent consideration     —       —       1.0       (0.4 )
    (-) Acquisition related transaction costs     (0.1 )     (0.4 )     (0.6 )     (0.4 )
    Non-GAAP General and administrative   $ 21.4     $ 19.7     $ 87.5     $ 80.4  
                                     
    Net Margin, EBITDA Margin and Adjusted EBITDA Margin
    (Unaudited) (Amounts in millions, except percentages)
                             
        Three Months Ended
    December 31,    		       Twelve Months Ended
    December 31,    		    
          2024       2023     Change     2024       2023     Change
    Revenue (A)   $ 117.6     $ 100.5     $ 17.1     $ 492.1     $ 403.1     $ 89.0  
    Revenue less ancillary services (B)     112.8       96.1       16.7       474.2       381.5       92.7  
    Net loss (C)     (15.9 )     1.3       (17.2 )     2.9       (8.6 )     11.5  
    EBITDA (D)     (14.6 )     2.0       (16.6 )     (0.5 )     (0.9 )     0.4  
    Adjusted EBITDA (E)     16.7       7.7       9.0       77.9       42.0       35.9  
    Net margin (C/A)     -13.5 %     1.3 %     -14.8 %     0.6 %     -2.1 %     2.7 %
    Net margin using RLAS (C/B)     -14.1 %     1.3 %     -15.4 %     0.6 %     -2.3 %     2.9 %
    EBITDA Margin (D/A)     -12.4 %     2.0 %     -14.4 %     -0.1 %     -0.2 %     0.1 %
    Adjusted EBITDA Margin (E/A)     14.2 %     7.6 %     6.6 %     15.8 %     10.4 %     5.4 %
    EBITDA Margin using RLAS (D/B)     -12.9 %     2.1 %     -15.0 %     -0.1 %     -0.2 %     0.1 %
    Adjusted EBITDA Margin using RLAS (E/B)     14.8 %     8.0 %     6.8 %     16.4 %     11.0 %     5.4 %
                                                     
    Reconciliation of FX Neutral Revenue Growth Guidance to
    FX Neutral Revenue Less Ancillary Services Growth Guidance
                   
      Three Months Ended
    March 31, 2025    		   Year Ended
    December 31, 2025
      Low   High   Low   High
                   
    FX Neutral GAAP Revenue Growth   10 %     13 %     9 %     13 %
                   
    Adjustment for Ancillary Services   1 %     1 %     1 %     1 %
                   
    FX Neutral Revenue Less Ancillary Services Growth   11 %     14 %     10 %     14 %
                                   

    The MIL Network –

    February 26, 2025

  • MIL-OSI: EXL Reports 2024 Fourth Quarter and Year-End Results; Issues 2025 Guidance

    Source: GlobeNewswire (MIL-OSI)

    2024 Fourth Quarter Revenue of $481.4 Million, up 16.3% year-over-year
    Q4 Diluted EPS (GAAP) of $0.31, up 28.4% from $0.24 in Q4 of 2023
    Q4 Adjusted Diluted EPS (Non-GAAP) (1)of $0.44, up 26.1% from $0.35 in Q4 of 2023

    2024 Revenue of $1.84 Billion, up 12.7% year-over-year
    2024 Diluted EPS (GAAP) of $1.21, up 10.0% from $1.10 in 2023
    2024 Adjusted Diluted EPS (Non-GAAP) (1)of $1.65, up 15.4% from $1.43 in 2023

    NEW YORK, Feb. 25, 2025 (GLOBE NEWSWIRE) — ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, today announced its financial results for the quarter and full year ended December 31, 2024.

    Rohit Kapoor, chairman and chief executive officer, said, “As we executed our data and AI strategy in 2024, we achieved several key milestones, including launching an enterprise AI platform in partnership with NVIDIA, introducing our insurance-specific large language model (LLM) and expanding our data management capabilities with the acquisition of ITI Data. Our focus on innovating with speed led to industry-leading full-year revenue growth of 12.7% and adjusted EPS growth of 15.4%. As AI adoption continues to increase, EXL is well positioned to capture this opportunity and continue its strong growth momentum.”

    Maurizio Nicolelli, chief financial officer, said, “We finished 2024 with robust growth across our business segments, a formidable balance sheet and strong free cash flow. For the full year 2025, we expect revenue to be in the range of $2.025 billion to $2.060 billion, representing a 10% to 12% increase year-over-year on a reported basis and 11% to 13% on constant currency basis. We expect adjusted diluted EPS to be in the range of $1.83 to $1.89, representing a 11% to 14% increase over 2024.”

    __________________________________________________

    1. Reconciliations of adjusted (non-GAAP) financial measures to the most directly comparable GAAP measures, where applicable, are included at the end of this release under “Reconciliation of Adjusted Financial Measures to GAAP Measures.” These non-GAAP measures, including adjusted diluted EPS and constant currency measures, are not measures of financial performance prepared in accordance with GAAP.

    Financial Highlights: Fourth Quarter 2024

    • Revenue for the quarter ended December 31, 2024 increased to $481.4 million compared to $414.1 million for the fourth quarter of 2023, an increase of 16.3% on a reported basis and constant currency basis. Revenue increased by 2.0% sequentially on a reported basis and 2.4% on a constant currency basis, from the third quarter of 2024.
        Revenue
    		   Gross Margin
        Three months ended
    		   Three months ended
    Reportable Segments   December 31, 2024
    		   December 31, 2023
    		   September 30, 2024
    		   December 31, 2024
    		   December 31, 2023
    		   September 30, 2024
        (dollars in millions)    
    Insurance   $ 162.0     $ 139.1     $ 157.6     36.9 %   36.2 %   36.3 %
    Healthcare     31.6       26.0       30.5     31.7 %   36.9 %   33.6 %
    Emerging Business     80.1       67.0       80.0     40.7 %   41.0 %   40.2 %
    Analytics     207.7       182.0       204.0     39.0 %   35.4 %   38.5 %
    Revenues, net   $ 481.4     $ 414.1     $ 472.1     38.1 %   36.7 %   37.8 %
                                               
    • Operating income margin for the quarter ended December 31, 2024 was 14.8%, compared to 13.1% for the fourth quarter of 2023 and 14.7% for the third quarter of 2024. Adjusted operating income margin for the quarter ended December 31, 2024 was 18.8%, compared to 17.8% for the fourth quarter of 2023 and 19.9% for the third quarter of 2024.
    • Diluted earnings per share for the quarter ended December 31, 2024 was $0.31, compared to $0.24 for the fourth quarter of 2023 and $0.33 for the third quarter of 2024. Adjusted diluted earnings per share for the quarter ended December 31, 2024 was $0.44, compared to $0.35 for the fourth quarter of 2023 and $0.44 for the third quarter of 2024.

    Financial Highlights: Full Year 2024

    • Revenue for the year ended December 31, 2024 increased to $1.84 billion compared to $1.63 billion for the year ended December 31, 2023, an increase of 12.7% on a reported basis and constant currency basis.
        Revenue
    		   Gross Margin
        Year ended
    		   Year ended
    Reportable Segments   December 31, 2024
    		   December 31, 2023
    		   December 31, 2024
    		   December 31, 2023
        (dollars in millions)    
    Insurance   $ 614.0     $ 529.9     36.4 %   35.5 %
    Healthcare     116.4       106.0     33.0 %   34.6 %
    Emerging Business     311.7       265.7     41.8 %   43.2 %
    Analytics     796.3       729.1     37.5 %   36.8 %
    Revenues, net   $ 1,838.4     $ 1,630.7     37.6 %   37.3 %
                                 
    • Operating income margin for the year ended December 31, 2024 was 14.3%, compared to 14.6% for the year ended December 31, 2023. Adjusted operating income margin for the year ended December 31, 2024 was 19.4%, compared to 19.3% for the year ended December 31, 2023.
    • Diluted earnings per share for the year ended December 31, 2024 was $1.21, compared to $1.10 for the year ended December 31, 2023. Adjusted diluted earnings per share for the year ended December 31, 2024 was $1.65, compared to $1.43 for the year ended December 31, 2023.

    Business Highlights: Fourth Quarter 2024

    • Won 17 new clients in the fourth quarter of 2024, with 8 clients in digital operations and solutions and 9 in analytics. For the year, we won 69 new clients, with 32 in digital operations and solutions and 37 in analytics.
    • Launched EXLerate.AI, an agentic AI platform designed to help enterprises reimagine and build AI-native workflows that drive greater efficiency, lower costs, and increased accuracy and scalability across business operations.
    • Named a Leader in the ISG Provider Lens™ Generative AI Services 2024 report. Analysts cited EXL’s data integration capabilities, domain-specific expertise, and robust transformational framework as key differentiators driving its leadership in this space.
    • Recognized as a Market Leader in the HFS Research 2024 AADA Quadfecta Services for the Generative Enterprise™ 2024 study. The study evaluated 27 leading analytics, AI, data platforms, and automation service providers on their ability to unlock deep insights from data, automate complex processes, and enhance operational efficiencies. The Market Leader designation is the report’s highest distinction.

    2025 Operating Model

    To accelerate the execution of our data and AI strategy, capture a greater share of the growing AI market and drive EXL’s long-term growth, the company is changing its operating model. The new model is comprised of Industry Market Units focused on delivering higher value to clients leveraging our full suite of capabilities; and Strategic Growth Units focused on rapidly advancing our capabilities specific to various industries and client needs.

    This enhances our ability to deepen client relationships, unlock new buying centers, expand our addressable markets across industries and geographies, accelerate investments in data and AI capabilities and industry-specific solutions, and create more professional development opportunities for our employees. This model enables us to deliver AI-powered integrated solutions more effectively and evolve engagements to maximize value for our clients.

    EXL will adopt new financial reporting segments consistent with how management will be reviewing financial information and making operating decisions beginning in the first quarter of 2025. Our data, AI and analytics capabilities are driving all our solutions and business lines. Accordingly, we will now report data and AI revenue alongside our new reporting segments beginning with the first quarter of 2025. This shift will provide a higher quality and more relevant representation of our business performance as we continue executing our data and AI growth strategy. The new reportable segments, aligned to our Industry Market Units, are as follows:

    • Insurance
    • Healthcare and Life Sciences
    • Banking, Capital Markets and Diversified Industries
    • International Growth Markets

    The change in segment presentation will not have any effect on our consolidated statements of income, balance sheets or cash flows. The revised presentation will be reflected in our periodic and annual reports beginning in the first quarter of 2025.

    2025 Guidance

    Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 87.0, U.K. pound sterling to U.S. dollar exchange rate of 1.25, U.S. dollar to the Philippine peso exchange rate of 58.0 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2025:

    • Revenue of $2.025 billion to $2.060 billion, representing an increase of 10% to 12% on a reported basis, and 11% to 13% on a constant currency basis, from 2024; and
    • Adjusted diluted earnings per share of $1.83 to $1.89, representing an increase of 11% to 14% from 2024.

    Conference Call

    ExlService Holdings, Inc. will host a conference call on Wednesday, February 26, 2025, at 10:00 A.M. ET to discuss the Company’s fourth quarter and year-end operating and financial results. The conference call will be available live via the internet by accessing the investor relations section of EXL’s website at ir.exlservice.com, where an accompanying investor-friendly spreadsheet of historical operating and financial data can also be accessed. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software.

    To join the live call, please register here. For those who cannot access the live broadcast, a replay will be available on the EXL website ir.exlservice.com for a period of twelve months.

    About ExlService Holdings, Inc.

    EXL (NASDAQ: EXLS) is a global data and artificial intelligence (“AI”) company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media and retail, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have more than 59,000 employees spanning six continents. For more information, visit www.exlservice.com.

    Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL’s operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management’s experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include our ability to maintain and grow client demand, risks related to the use of AI technology, impact on client demand by the selling cycle of our contracts, fluctuations in our earnings, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by applicable law.

     
    EXLSERVICE HOLDINGS, INC.
    CONSOLIDATED STATEMENTS OF INCOME
    (In thousands, except per share amount and share count)
               
              (Unaudited)
      Year ended December 31,   Three months ended December 31,
      2024   2023   2024   2023
    Revenues, net $ 1,838,372     $ 1,630,668     $ 481,426     $ 414,058  
    Cost of revenues(1)   1,147,359       1,022,902       298,023       262,211  
    Gross profit(1)   691,013       607,766       183,403       151,847  
    Operating expenses:              
    General and administrative expenses   225,672       198,294       58,477       53,730  
    Selling and marketing expenses   146,502       120,227       37,520       31,553  
    Depreciation and amortization expense   55,219       50,490       16,164       12,298  
    Total operating expenses   427,393       369,011       112,161       97,581  
    Income from operations   263,620       238,755       71,242       54,266  
    Foreign exchange gain, net   891       1,532       218       694  
    Interest expense   (19,256 )     (13,180 )     (5,111 )     (3,150 )
    Other income/(expense), net   16,092       10,834       4,216       4,240  
    Income before income tax expense and earnings from equity affiliates   261,347       237,941       70,565       56,050  
    Income tax expense   62,936       53,536       19,850       15,763  
    Income before earnings from equity affiliates   198,411       184,405       50,715       40,287  
    Gain/(loss) from equity-method investment   (114 )     153       (43 )     (4 )
    Net income $ 198,297     $ 184,558     $ 50,672     $ 40,283  
    Earnings per share:              
    Basic $ 1.22     $ 1.11     $ 0.31     $ 0.24  
    Diluted $ 1.21     $ 1.10     $ 0.31     $ 0.24  
    Weighted average number of shares used in computing earnings per share:              
    Basic   162,718,840       166,341,213       161,292,473       165,254,017  
    Diluted   164,321,656       168,161,371       163,436,793       166,880,836  

    (1)Exclusive of depreciation and amortization expense.

     
    EXLSERVICE HOLDINGS, INC.
    CONSOLIDATED BALANCE SHEETS
    (In thousands, except per share amount and share count)
         
        As of
        December 31, 2024   December 31, 2023
    Assets        
    Current assets:        
    Cash and cash equivalents   $ 153,355     $ 136,953  
    Short-term investments     187,223       153,881  
    Restricted cash     9,972       4,062  
    Accounts receivable, net     304,322       308,108  
    Other current assets     140,317       76,669  
    Total current assets     795,189       679,673  
    Property and equipment, net     101,837       100,373  
    Operating lease right-of-use assets     68,784       64,856  
    Restricted cash     8,071       4,386  
    Deferred tax assets, net     104,747       82,927  
    Goodwill     420,387       405,639  
    Other intangible assets, net     49,331       50,164  
    Long-term investments     13,972       4,430  
    Other assets     56,085       49,524  
    Total assets   $ 1,618,403     $ 1,441,972  
    Liabilities and stockholders’ equity        
    Current liabilities:        
    Accounts payable   $ 5,884     $ 5,055  
    Current portion of long-term borrowings     4,886       65,000  
    Deferred revenue     19,264       12,318  
    Accrued employee costs     129,994       117,137  
    Accrued expenses and other current liabilities     113,597       114,113  
    Current portion of operating lease liabilities     16,491       12,780  
    Total current liabilities     290,116       326,403  
    Long-term borrowings, less current portion     283,598       135,000  
    Operating lease liabilities, less current portion     59,851       58,175  
    Deferred tax liabilities, net     1,403       1,495  
    Other non-current liabilities     53,573       31,462  
    Total liabilities     688,541       552,535  
    Commitments and contingencies        
    Stockholders’ equity:        
    Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued     —       —  
    Common stock, $0.001 par value; 400,000,000 shares authorized, 206,510,587 shares issued and 161,801,212 shares outstanding as of December 31, 2024 and 203,410,038 shares issued and 165,277,880 shares outstanding as of December 31, 2023     206       203  
    Additional paid-in capital     588,583       508,028  
    Retained earnings     1,281,960       1,083,663  
    Accumulated other comprehensive loss     (154,722 )     (127,040 )
    Total including shares held in treasury     1,716,027       1,464,854  
    Less: 44,709,375 shares as of December 31, 2024 and 38,132,158 shares as of December 31, 2023, held in treasury, at cost     (786,165 )     (575,417 )
    Total stockholders’ equity     929,862       889,437  
    Total liabilities and stockholders’ equity   $ 1,618,403     $ 1,441,972  
                     
     
    EXLSERVICE HOLDINGS, INC.Reconciliation of Adjusted Financial Measures to GAAP Measures
     

    In addition to its reported operating results in accordance with U.S. generally accepted accounting principles (GAAP), EXL has included in this release certain financial measures that are considered non-GAAP financial measures, including the following:

    (i)   Adjusted operating income and adjusted operating income margin;
    (ii)   Adjusted EBITDA and adjusted EBITDA margin;
    (iii)   Adjusted net income and adjusted diluted earnings per share; and
    (iv)   Revenue growth on constant currency basis.
         

    These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. Accordingly, the financial results calculated in accordance with GAAP and reconciliations from those financial statements should be carefully evaluated. EXL believes that providing these non-GAAP financial measures may help investors better understand EXL’s underlying financial performance. Management also believes that these non-GAAP financial measures, when read in conjunction with EXL’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s results and comparisons of the Company’s results with the results of other companies. Additionally, management considers some of these non-GAAP financial measures to determine variable compensation of its employees. The Company believes that it is unreasonably difficult to provide its earnings per share financial guidance in accordance with GAAP, or a qualitative reconciliation thereof, for a number of reasons, including, without limitation, the Company’s inability to predict its future stock-based compensation expense under ASC Topic 718, the amortization of intangibles associated with future acquisitions and the currency fluctuations and associated tax effects. As such, the Company presents guidance with respect to adjusted diluted earnings per share. The Company also incurs significant non-cash charges for depreciation that may not be indicative of the Company’s ability to generate cash flow.

    EXL non-GAAP financial measures exclude, where applicable, stock-based compensation expense, amortization of acquisition-related intangible assets, provision for restructuring and litigation settlement matters, effects of termination of leases, certain defined social security contributions, allowance for certain material expected credit losses, other acquisition-related expenses or benefits and effect of any non-recurring tax adjustments. Acquisition-related expenses or benefits include, changes in the fair value of contingent consideration, external deal costs, integration expenses, direct and incremental travel costs and non-recurring benefits or losses. Our adjusted net income and adjusted diluted EPS also excludes the effects of income tax on the above pre-tax items, as applicable. The effects of income tax of each item is calculated by applying the statutory rate of the local tax regulations in the jurisdiction in which the item was incurred.

    A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and exclude costs that are recurring, namely stock-based compensation and amortization of acquisition-related intangible assets. EXL compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures.

    EXL’s primary exchange rate exposure is with the Indian rupee, the Philippine peso, the U.K. pound sterling and the South African rand. The average exchange rate of the U.S. dollar against the Indian rupee increased from 83.28 during the quarter ended December 31, 2023 to 84.72 during the quarter ended December 31, 2024, representing a depreciation of 1.7% against the U.S. dollar. The average exchange rate of the U.S. dollar against the Philippine peso increased from 55.86 during the quarter ended December 31, 2023 to 58.19 during the quarter ended December 31, 2024, representing a depreciation of 4.2% against the U.S. dollar. The average exchange rate of the U.K. pound sterling against the U.S. dollar increased from 1.25 during the quarter ended December 31, 2023 to 1.28 during the quarter ended December 31, 2024, representing an appreciation of 1.9% against the U.S. dollar. The average exchange rate of the U.S. dollar against the South African rand decreased from 18.63 during the quarter ended December 31, 2023 to 18.18 during the quarter ended December 31, 2024, representing an appreciation of 2.4% against the U.S. dollar.

    The following table shows the reconciliation of these non-GAAP financial measures for the year ended December 31, 2024 and 2023, the three months ended December 31, 2024 and 2023 and the three months ended September 30, 2024:

    Reconciliation of Adjusted Operating Income and Adjusted EBITDA
    (Amounts in thousands)
             
        Year ended   Three months ended
        December 31,   December 31,   September 30,
        2024   2023   2024   2023   2024
    Net income (GAAP)   $ 198,297     $ 184,558     $ 50,672     $ 40,283     $ 53,037  
    add: Income tax expense     62,936       53,536       19,850       15,763       15,460  
    add/(subtract): Foreign exchange gain, net, interest expense, gain/(loss) from equity-method investment and other income/(loss), net     2,387       661       720       (1,780 )     908  
    Income from operations (GAAP)   $ 263,620     $ 238,755     $ 71,242     $ 54,266     $ 69,405  
    add: Stock-based compensation expense     72,658       58,437       15,479       15,452       21,232  
    add: Amortization of acquisition-related intangibles     13,630       14,678       4,024       3,168       3,449  
    add: Restructuring and litigation settlement costs (a)     6,174       613       —       613       —  
    add/(subtract): Allowance/(reversal) for expected credit losses (b)     —       1,436       —       (264 )     —  
    add: Other expenses (c)     —       771       —       282       —  
    Adjusted operating income (Non-GAAP)   $ 356,082     $ 314,690     $ 90,745     $ 73,517     $ 94,086  
    Adjusted operating income margin as a % of Revenue (Non-GAAP)     19.4 %     19.3 %     18.8 %     17.8 %     19.9 %
    add: Depreciation on long-lived assets     41,589       34,434       12,140       9,130       10,350  
    Adjusted EBITDA (Non-GAAP)   $ 397,671     $ 349,124     $ 102,885     $ 82,647     $ 104,436  
    Adjusted EBITDA margin as a % of revenue (Non-GAAP)     21.6 %     21.4 %     21.4 %     20.0 %     22.1 %
                         

    (a) To exclude effects of employee severance costs and outplacement support costs of $4,762 and $nil and litigation settlement costs and associated legal fees of $1,412 and $613 for the year ended December 31, 2024 and 2023, respectively. To exclude effects of litigation settlement costs and associated legal fees of $nil and $613 for the three months ended December 31, 2024 and 2023, respectively.

    (b) To exclude the effects of material allowance/(reversal) for expected credit losses on accounts receivables related to a customer bankruptcy event.

    (c) To exclude effects of lease termination of $nil and $489 and other items, individually insignificant of $nil and $282 for the year ended December 31, 2024 and 2023, respectively. To exclude effects of other items, individually insignificant of $nil and $282 for the three months ended December 31, 2024 and 2023, respectively.

     
    Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share
    (Amounts in thousands, except per share data)
             
        Year ended   Three months ended
        December 31,   December 31,   September 30,
        2024   2023   2024   2023   2024
    Net income (GAAP)   $ 198,297     $ 184,558     $ 50,672     $ 40,283     $ 53,037  
    add: Stock-based compensation expense     72,658       58,437       15,479       15,452       21,232  
    add: Amortization of acquisition-related intangibles     13,630       14,678       4,024       3,168       3,449  
    add: Restructuring and litigation settlement costs (a)     6,174       613       —       613       —  
    add/(subtract): Changes in fair value of contingent consideration     (589 )     1,900       —       (600 )     —  
    add: Other tax expenses (b)     3,817       223       3,817       223       —  
    add/(subtract): Allowance/(reversal) for expected credit losses (c)     —       1,436       —       (264 )     —  
    add: Other expenses (d)     —       489       —       —       —  
    subtract: Tax impact on stock-based compensation expense (e)     (17,576 )     (17,333 )     (1,769 )     (374 )     (5,830 )
    subtract: Tax impact on amortization of acquisition-related intangibles     (3,318 )     (3,622 )     (921 )     (792 )     (866 )
    add/(subtract): Tax impact on restructuring and litigation settlement costs     (1,540 )     —       48       —       —  
    add/(subtract): Tax impact on changes in fair value of contingent consideration     146       152       (5 )     152       —  
    add/(subtract): Tax impact on allowance/(reversal) for expected credit losses     —       (364 )     —       65       —  
    subtract: Tax impact on other expenses     —       (280 )     —       (157 )     —  
    Adjusted net income (Non-GAAP)   $ 271,699     $ 240,887     $ 71,345     $ 57,769     $ 71,022  
    Adjusted diluted earnings per share (Non-GAAP)   $ 1.65     $ 1.43     $ 0.44     $ 0.35     $ 0.44  
                                             

    (a) To exclude effects of employee severance costs and outplacement support costs of $4,762 and $nil and litigation settlement costs and associated legal fees of $1,412 and $613 for the year ended December 31, 2024 and 2023, respectively. To exclude effects of litigation settlement costs and associated legal fees of $nil and $613 for the three months ended December 31, 2024 and 2023, respectively.

    (b) To exclude other tax expenses/(benefits) related to certain deferred tax assets and liabilities.

    (c) To exclude the effects of material allowance/(reversal) for expected credit losses on accounts receivables related to a customer bankruptcy event.

    (d) To exclude effects of lease termination of $nil and $489 for the year ended December 31, 2024 and 2023, respectively.

    (e) Tax impact includes $9,714 and $15,055 for the year ended December 31, 2024 and 2023 respectively, $500 and $1,883 for the three months ended December 31, 2024 and 2023 respectively, and $1,673 for the three months ended September 30, 2024 related to discrete benefit recognized in income tax expense in accordance with ASU No. 2016-09, Compensation – Stock Compensation.

    Contacts:
    Investor Relations
    John Kristoff
    Vice President, Investor Relations
    +1 212 209 4613
    ir@exlservice.com

    Media – US
    Keith Little
    Assistant Vice President, Media Relations
    +1 703 598 0980
    media.relations@exlservice.com

    The MIL Network –

    February 26, 2025

  • MIL-OSI: SLR Investment Corp. Announces Quarter and Year Ended December 31, 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Net Investment Income of $0.44 Per Share for Q4 2024;

    Declared Quarterly Distribution of $0.41 Per Share;

    Stable NAV/Strong Credit Quality

    NEW YORK, Feb. 25, 2025 (GLOBE NEWSWIRE) — SLR Investment Corp. (NASDAQ: SLRC) (the “Company”, “SLRC”, “we”, “us”, or “our”) today reported net investment income (“NII”) of $23.8 million, or $0.44 per share, for the fourth quarter of 2024. On February 25, 2025, the Board declared a quarterly distribution of $0.41 per share payable on March 28, 2025, to holders of record as of March 14, 2025.

    As of December 31, 2024, net asset value (“NAV”) was $18.20 per share, unchanged from the prior quarter ended September 30, 2024.

    “This month, SLRC celebrated its 15th anniversary since its initial public offering and more than 18 years of operating history as a private credit manager for SLR Capital Partners, our investment adviser,” said Michael Gross, Co-CEO of SLR Investment Corp. “Since inception in 2010, SLRC has made approximately $7.5 billion of investments including five platform specialty finance acquisitions and four related tuck-in acquisitions. Our asset mix across specialty and sponsor finance investment strategies and conservative underwriting approach has created a differentiated and attractive risk-adjusted return profile compared to sponsor finance only portfolios.” 

    “SLRC generated strong NII per share for both the fourth quarter and full year. In addition, NAV increased to $18.20 from $18.09 per share a year ago, reflecting solid credit performance from a diversified portfolio and disciplined underwriting in an environment of elevated rates and tighter cash flow coverage,” said Bruce Spohler, Co-CEO of SLR Investment Corp. “The ongoing retreat of regional banks from asset-based lending has resulted in a significant pipeline of specialty finance investment opportunities. Our flexibility to pivot to the most attractive investment strategies allows us to protect capital and perform across market cycles.”

    FINANCIAL HIGHLIGHTS FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2024:

    At December 31, 2024:

    Investment portfolio fair value: $2.0 billion | Comprehensive Investment Portfolio fair value:(1) $3.1 billion
    Net assets: $992.9 million or $18.20 per share
    Leverage: 1.03x net debt-to-equity

    Operating Results for the Quarter Ended December 31, 2024:

    Net investment income: $23.8 million or $0.44 per share
    Net realized and unrealized losses: $1.2 million or $0.02 per share
    Net increase in net assets from operations: $22.6 million or $0.41 per share

    Operating Results for the Year Ended December 31, 2024:

    Net investment income: $96.3 million or $1.77 per share
    Net realized and unrealized loss: $0.6 million or $0.01 per share
    Net increase in net assets from operations: $95.8 million or $1.76 per share

    Comprehensive Investment Portfolio Activity(2) for the Quarter and Year Ended December 31, 2024:

    Investments made during the quarter: $338.4 million
    Investments prepaid and sold during the quarter: $442.7 million
    Investments made during the year: $1,352.6 million
    Investments prepaid and sold during the year: $1,377.8 million

    (1) The Comprehensive Investment Portfolio for the quarter ended December 31, 2024 is comprised of SLRC’s investment portfolio and SLR Credit Solutions’ (“SLR-CS”) portfolio, SLR Equipment Finance’s (“SLR-EF”) portfolio, Kingsbridge Holdings, LLC’s (“KBH”) portfolio, SLR Business Credit’s (“SLR-BC”) portfolio, SLR Healthcare ABL’s (“SLR-HC ABL”) portfolio owned by the Company (collectively, the Company’s “Commercial Finance Portfolio Companies”), and the senior secured loans held by the SLR Senior Lending Program LLC (“SSLP”) attributable to the Company, and excludes the Company’s fair value of the equity interests in SSLP and the Commercial Finance Portfolio Companies and also excludes SLRC’s loans to KBH, SLR-EF, and SLR HC ABL.
    (2) Comprehensive Investment Portfolio activity for the quarter ended December 31, 2024, includes investment activity of the Commercial Finance Portfolio Companies and SSLP attributable to the Company.

    Comprehensive Investment Portfolio

    Portfolio Activity

    During the three months ended December 31, 2024, SLRC had Comprehensive Investment Portfolio originations of $338.4 million and repayments of $442.7 million across the Company’s four investment strategies:

     For the Quarter Ended December 31, 2024
    ($mm)
    Asset Class Sponsor
    Finance(1)    		 Asset-based
    Lending(2)    		 Equipment
    Finance(3)    		 Life Science
    Finance    		 Total
    Comprehensive Investment
    Portfolio Activity
    Originations $20.7 $128.6 $182.5 $6.6 $338.4
    Repayments / Amortization $102.3 $205.3 $101.7 $33.4 $442.7
    Net Portfolio Activity ($81.6) ($76.7) $80.8 ($26.8) ($ 104.3)

    During the year ended December 31, 2024, SLRC had Comprehensive Investment Portfolio originations of $1,352.6 million and repayments of $1,377.8 million across the Company’s four investment strategies:

    For the Year Ended December 31, 2024
    ($mm)
    Asset Class Sponsor
    Finance(1)    		 Asset-based
    Lending(2)    		 Equipment
    Finance(3)    		 Life Science
    Finance    		 Total
    Comprehensive Investment Portfolio Activity
    Originations $113.0 $555.7 $649.4 $34.5 $1,352.6
    Repayments / Amortization $190.2 $515.8 $508.5 $163.3 $1,377.8
    Net Portfolio Activity ($77.2) $39.9 $140.9 ($128.8) ($ 25.2)

    (1) Sponsor Finance refers to cash flow loans to sponsor-owned companies including cash flow loans held in SSLP attributable to the Company.
    (2) Includes SLR-CS, SLR-BC and SLR-HC ABL’s portfolios, as well as asset-based loans on the Company’s balance sheet.
    (3) Includes SLR-EF’s portfolio and equipment financings on the Company’s balance sheet and Kingsbridge Holdings’ (KBH) portfolio.

    Comprehensive Investment Portfolio Composition

    The Comprehensive Investment Portfolio is diversified across approximately 890 unique issuers, operating in over 110 industries, and resulting in an average exposure of $3.5 million or 0.1% per issuer. As of December 31, 2024, 98.2% of the Company’s Comprehensive Investment Portfolio was invested in senior secured loans of which 96.4% was held in first lien senior secured loans. Second lien ABL exposure was 1.5% and second lien cash flow exposure was 0.3% of the Comprehensive Investment Portfolio as of December 31, 2024.

    SLRC’s Comprehensive Investment Portfolio composition by asset class as of December 31, 2024 was as follows:

    Comprehensive Investment
    Portfolio Composition
    (at fair value)     		 Amount Weighted Average
    ($mm) % Asset Yield(5)
    Senior Secured Investments      
    Cash Flow Loans (Sponsor Finance)(1) $633.8 20.6% 10.6%
    Asset-Based Loans(2) $1,037.3 33.6% 14.6%
    Equipment Financings(3) $1,147.9 37.2% 10.7%
    Life Science Loans $208.8 6.8% 12.1%
    Total Senior Secured Investments $3,027.8 98.2% 12.1%
    Equity and Equity-like Securities $54.8 1.8%  
    Total Comprehensive Investment Portfolio $3,082.6 100.0%  
    Floating Rate Investments(4) $1,866.7 61.0%  
    First Lien Senior Secured Loans $2,972.1 96.4%  
    Second Lien Senior Secured Asset-Based Loans $47.8 1.5%  
    Second Lien Senior Secured Cash Flow Loans $7.8 0.3%  

    (1) Includes cash flow loans held in the SSLP attributable to the Company and excludes the Company’s equity investment in SSLP.
    (2) Includes SLR-CS, SLR-BC, and SLR-HC ABL’s portfolios, as well as asset-based loans on the Company’s balance sheet, and excludes the Company’s equity investments in each of SLR-CS, SLR-BC, and SLR-HC ABL.
    (3) Includes SLR-EF’s portfolio and equipment financings on the Company’s balance sheet and Kingsbridge Holdings’ (KBH) portfolio. Excludes the Company’s equity and debt investments in each of SLR-EF and KBH.
    (4) Floating rate investments are calculated as a percent of the Company’s income-producing Comprehensive Investment Portfolio. The majority of fixed rate loans are associated with SLR-EF and leases held by KBH. Additionally, SLR-EF and KBH seek to match-fund their fixed rate assets with fixed rate liabilities.
    (5) The weighted average asset yield for income producing cash flow, asset-based and life science loans on balance sheet is based on a yield to maturity calculation. The weighted average asset yield calculation for Life Science loans includes the amortization of expected exit/success fees. The weighted average yield for on-balance sheet equipment financings is calculated based on the expected average life of the investments. The weighted average asset yield for SLR-CS asset-based loans is an Internal Rate of Return (IRR) calculated using actual cash flows received and the expected terminal value. The weighted average asset yield for SLR-BC and SLR-HC ABL represents total interest and fee income for the three-month period ended on December 31, 2024 against the average portfolio over the same fiscal period, annualized. The weighted average asset yield for SLR-EF represents total interest and fee income for the three-month period ended on December 31, 2024 compared to the portfolio as of December 31, 2024, annualized. The weighted average yield for the KBH equipment leasing portfolio represents the blended yield from the company’s 1st lien loan on par value and the annualized dividend yield on the cost basis of the company’s equity investment as of December 31, 2024.

    SLR Investment Corp. Portfolio

    Asset Quality

    As of December 31, 2024, 99.6% of SLRC’s portfolio was performing on a fair value basis and 99.4% on a cost basis, with only one investment on non-accrual.

    The Company puts its largest emphasis on risk control and credit performance. On a quarterly basis, or more frequently if deemed necessary, the Company formally rates each portfolio investment on a scale of one to four, with one representing the least amount of risk.

    As of December 31, 2024, the composition of our investment portfolio, on a risk ratings basis, was as follows:

    Internal Investment Rating Investments at Fair Value ($mm) % of Total Portfolio
    1 $701.0 34.9%
    2 $1,286.9 64.2%
    3 $9.9 0.5%
    4 $7.8 0.4%

    Investment Income Contribution by Asset Class

    Investment Income Contribution by Asset Class(1)
    ($mm)
    For the Quarter
    Ended:    		 Sponsor
    Finance    		 Asset-based
    Lending    		 Equipment
    Finance    		 Life Science
    Finance    		 Total
    12/31/2024 $18.7 $18.1 $8.8 $10.0 $55.6
    % Contribution 33.7% 32.5% 15.8% 18.0% 100.0%
    Investment Income Contribution by Asset Class(1)
    ($mm)
    For the Year
    Ended:    		 Sponsor
    Finance    		 Asset-based
    Lending    		 Equipment
    Finance    		 Life Science
    Finance    		 Total
    12/31/2024 $82.6 $62.5 $36.6 $50.7 $232.4
    % Contribution 35.5% 26.9% 15.8% 21.8% 100.0%

    (1) Investment Income Contribution by Asset Class includes: interest income/fees from Sponsor Finance (cash flow) loans on balance sheet and distributions from SSLP; income/fees from asset-based loans on balance sheet and distributions from SLR-CS, SLR-BC, SLR-HC ABL; income/fees from equipment financings and distributions from SLR-EF and distributions from KBH; and income/fees from life science loans on balance sheet.

    SLR Senior Lending Program LLC (SSLP)

    As of December 31, 2024, the Company and its 50% partner, Sunstone Senior Credit L.P., had contributed combined equity capital of $95.8 million of a total equity commitment for $100 million to the SSLP. At year end, SSLP had total commitments of $189.8 million at par and total funded portfolio investments of $178.7 million at fair value, consisting of floating rate senior secured loans to 32 different borrowers and an average investment of $5.6 million per borrower. This compares to funded portfolio investments of $204.1 million at fair value across 37 different borrowers at September 30, 2024. During the quarter ended December 31, 2024, SSLP invested $2.0 million in 4 portfolio companies and had $27.7 million of investments repaid.

    In Q4 2024, the Company earned income of $1.9 million from its investment in the SSLP, representing an annualized yield of 15.6% on the cost basis of the Company’s investment, similar to Q3 2024.

    SLR Investment Corp.’s Results of Operations Year Over Year

    Investment Income

    For the fiscal years ended December 31, 2024, and 2023, gross investment income totaled $232.4 million and $229.3 million, respectively. The increase in gross investment income for the year over year period was primarily due to an increase in dividend income from SSLP and our specialty finance company equity investments.

    Expenses

    SLRC’s net expenses totaled $136.1 million and $137.2 million, respectively, for the fiscal years ended December 31, 2024, and 2023. The decrease in expenses from 2024 to 2023 was primarily due to lower interest expense on a decrease in average borrowings as well as a reduction in general and administrative expenses, partially offset by higher fees stemming from higher net investment income.

    SLRC’s investment adviser agreed to waive incentive fees resulting from income earned due to the accretion of the purchase price discount allocated to investments acquired in the Company’s merger with SLR Senior Investment Corp., which closed on April 1, 2022. For the fiscal years ended December 31, 2024 and 2023, $153 thousand and $500 thousand, respectively, of such performance-based incentive fees were waived.

    Net Investment Income

    SLRC’s net investment income totaled $96.3 million and $92.1 million, or $1.77 and $1.69, per average share, respectively, for the fiscal years ended December 31, 2024, and 2023.

    Net Realized and Unrealized Loss

    Net realized and unrealized loss for the fiscal years ended December 31, 2024 and 2023 totaled $0.6 million and $15.7 million, respectively.

    Net Increase in Net Assets Resulting from Operations

    For the fiscal years ended December 31, 2024, and 2023, the Company had a net increase in net assets resulting from operations of $95.8 million and $76.4 million, respectively. For the same periods, earnings per average share were $1.76 and $1.40, respectively.

    Capital and Liquidity

    Credit Facilities

    As of December 31, 2024, the Company had $507 million drawn on $970 million of total commitments available on its revolving credit facilities and $140 million of term loans outstanding. In Q3 2024, the Company extended its SLRC revolver credit facility to a maturity of August 2029, increased the size, and lowered pricing. In Q4 2024, three new lenders were added to the SLRC revolving credit facility.

    Unsecured Debt

    On December 16, 2024, the Company closed a private offering of $49.0 million of the 2027 Series G Unsecured Notes with a fixed interest rate of 6.24% and a maturity date of December 16, 2027. As of December 31, 2024, the Company had $394 million of unsecured notes outstanding.

    On February 18, 2025, the Company closed an additional private offering of $50.0 million of unsecured notes due 2028 with a fixed rate of interest of 6.14% and a maturity date of February 18, 2028.

    Leverage

    As of December 31, 2024, the Company’s net debt-to-equity ratio was 1.03x and compared to 1.19x as of December 31, 2023 and the Company’s target range of 0.9x to 1.25x.

    Available Capital

    As of December 31, 2024, including anticipated available borrowing capacity at the SSLP and our specialty finance portfolio companies, subject to borrowing base limits, SLRC, SSLP and our specialty finance portfolio companies had over $900 million of available capital in the aggregate.

    Unfunded Commitments

    As of December 31, 2024, excluding commitments to SLR-CS, SLR-BC, SLR-HC ABL, SLR Equipment Finance, and SSLP, over which the Company has discretion to fund, the Company had unfunded commitments of approximately $167.2 million.

    Subsequent Events

    On February 25, 2025, the Board declared a quarterly distribution of $0.41 per share payable on March 28, 2025, to holders of record as of March 14, 2025.

    Conference Call and Webcast Information

    The Company will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Wednesday, February 26, 2025. All interested parties may participate in the conference call by dialing (800) 579-2543 approximately 5-10 minutes prior to the call, international callers should dial (785) 424-1789. Participants should reference SLR Investment Corp. and Conference ID: SLRC4Q24. A telephone replay will be available until March 12, 2025 and can be accessed by dialing (800) 839-4568. International callers should dial (402) 220-2681.

    This conference call will also be broadcast live over the Internet and can be accessed by all interested parties from the Event Calendar within the “Investors” tab of SLR Investment Corp.’s website, https://slrinvestmentcorp.com/Investors/Event-Calendar. Please register online prior to the start of the call. For those who are not able to listen to the broadcast live, a replay of the webcast will be available soon after the call.

    Supplemental Information of SLR Investment Corp.’s Results of Operations Quarter Over Quarter 

    Operating results: Quarter Ended
    December 31, 2024
    (unaudited)    		   Quarter Ended
    September 30, 2024
    (unaudited)
    Interest income   $36,290       $45,373  
    Dividend income   16,502       12,578  
    Other income   2,791       1,820  
    Total investment income   55,583       59,771  
    Management fee   7,739       7,893  
    Net Performance-based Incentive fee   5,920       6,036  
    Interest and other credit facility expenses   16,184       18,913  
    Administrative services expense   1,376       1,392  
    Other general and administrative expenses   572       1,189  
    Net expenses   31,791       35,423  
    Net investment income   $23,792       $24,348  
    Net realized and unrealized gains (losses)   (1,183)       (2,299)  
    Net increase in net assets resulting from operations   22,609       22,049  
    Net investment income per common share   $0.44       $0.45  
    Net realized and unrealized gains (losses) per common share   ($0.02)       ($0.04)  
    Earnings per common share – basic and diluted   $0.41       $0.40  
    SLR INVESTMENT CORP.
    CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
    (in thousands, except share and per share amounts)
     
      December 31, 2024     December 31, 2023  
    Assets          
    Investments at fair value:          
    Companies less than 5% owned (cost: $1,019,357 and $1,260,205, respectively) $ 1,027,457     $ 1,271,442  
    Companies 5% to 25% owned (cost: $103,655 and $60,064, respectively)   89,945       44,250  
    Companies more than 25% owned (cost: $916,554 and $870,128, respectively)   888,232       839,074  
    Cash   16,761       11,864  
    Cash equivalents (cost: $397,510 and $332,290, respectively)   397,510       332,290  
    Dividends receivable   15,375       11,768  
    Interest receivable   11,993       11,034  
    Receivable for investments sold   1,573       1,538  
    Prepaid expenses and other assets   571       608  
    Total assets $ 2,449,417     $ 2,523,868  
    Liabilities          
    Debt ($1,041,093 and $1,183,250 face amounts, respectively, reported net of unamortized debt issuance costs of $9,399 and $5,473, respectively.) $ 1,031,694     $ 1,177,777  
    Payable for investments and cash equivalents purchased   397,510       332,290  
    Management fee payable   7,739       8,027  
    Performance-based incentive fee payable   5,920       5,864  
    Interest payable   7,836       7,535  
    Administrative services payable   3,332       1,969  
    Other liabilities and accrued expenses   2,460       3,767  
    Total liabilities $ 1,456,491     $ 1,537,229  
    Commitments and contingencies          
    Net Assets          
    Common stock, par value $0.01 per share, 200,000,000 and 200,000,000 common shares authorized, respectively, and 54,554,634 and 54,554,634 shares issued and outstanding, respectively $ 546     $ 546  
    Paid-in capital in excess of par   1,117,606       1,117,930  
    Accumulated distributable net loss   (125,226 )     (131,837 )
    Total net assets $ 992,926     $ 986,639  
    Net Asset Value Per Share $ 18.20     $ 18.09  
    SLR INVESTMENT CORP.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except per share amounts)
       
      2024     2023  
    INVESTMENT INCOME:          
    Interest:          
    Companies less than 5% owned $ 154,077     $ 163,589  
    Companies 5% to 25% owned   3,881       2,058  
    Companies more than 25% owned   13,055       11,627  
    Dividends:          
    Companies 5% to less than 25% owned   845       —  
    Companies more than 25% owned   52,944       45,986  
    Other income:          
    Companies less than 5% owned   7,117       5,802  
    Companies 5% to 25% owned   —       26  
    Companies more than 25% owned   512       224  
    Total investment income   232,431       229,312  
    EXPENSES:          
    Management fees   31,389       31,661  
    Performance-based incentive fees   24,039       22,898  
    Interest and other credit facility expenses   71,464       72,507  
    Administrative services expense   5,520       5,899  
    Other general and administrative expenses   3,862       4,756  
    Total expenses   136,274       137,721  
    Performance-based incentive fees waived   (153 )     (500 )
    Net expenses   136,121       137,221  
    Net investment income $ 96,310     $ 92,091  
    REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
    AND CASH EQUIVALENTS:    		          
    Net realized loss on investments and cash equivalents:          
    Companies less than 5% owned $ (2,252 )   $ (27,602 )
    Companies more than 25% owned   —       (381 )
    Net realized loss on investments and cash equivalents   (2,252 )     (27,983 )
    Net change in unrealized gain (loss) on investments:          
    Companies less than 5% owned   (3,137 )     20,425  
    Companies 5% to 25% owned   2,105       (1,384 )
    Companies more than 25% owned   2,731       (6,761 )
    Net change in unrealized gain on investments   1,699       12,280  
    Net realized and unrealized loss on investments and cash
    equivalents    		   (553 )     (15,703 )
    NET INCREASE IN NET ASSETS RESULTING FROM
    OPERATIONS    		 $ 95,757     $ 76,388  
    EARNINGS PER SHARE $ 1.76     $ 1.40  

    About SLR Investment Corp.

    SLR Investment Corp. is a closed-end investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. A specialty finance company with expertise in several niche markets, the Company primarily invests in leveraged, U.S. upper middle market companies in the form of cash flow, asset-based, and life sciences senior secured loans.

    Forward-Looking Statements

    Some of the statements in this press release constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to: the Company’s access to deal flow and attractive investment opportunities; the market environment and its impact on the business prospects of SLRC and the prospects of SLRC’s portfolio companies; prospects for additional portfolio growth of SLRC; and the quality of, and the impact on the performance of SLRC from the investments that SLRC has made and expects to make. In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this press release involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with: (i) changes in the economy, financial markets and political environment, including the impacts of inflation and changing interest rates; (ii) risks associated with possible disruption in the operations of SLRC or the economy generally due to terrorism, war or other geopolitical conflicts, natural disasters, or pandemics; (iii) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (iv) conditions in SLRC’s operating areas, particularly with respect to business development companies or regulated investment companies; and (v) other considerations that may be disclosed from time to time in SLRC’s publicly disseminated documents and filings. SLRC has based the forward-looking statements included in this press release on information available to it on the date of this press release, and SLRC assumes no obligation to update any such forward-looking statements. Although SLRC undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that it may make directly to you or through reports that SLRC in the future may file with the Securities and Exchange Commission, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

    Contact
    SLR Investment Corp.
    Investor Relations
    slrinvestorrelations@slrcp.com | (646) 308-8770

    The MIL Network –

    February 26, 2025

  • MIL-OSI: Fidus Investment Corporation Schedules Fourth Quarter 2024 Earnings Release and Conference Call

    Source: GlobeNewswire (MIL-OSI)

    EVANSTON, Ill., Feb. 25, 2025 (GLOBE NEWSWIRE) — Fidus Investment Corporation (NASDAQ: FDUS) (“Fidus” or the “Company”) today announced that it will report its fourth quarter 2024 financial results on Thursday, March 6, 2025 after the close of the financial markets.

    Management will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, March 7, 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 https://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.

    A webcast replay of the conference call will be available two hours after the call on 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 is 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, and that the Company may or may not have considered, such as changes in the financial and lending markets and the impact of interest rate volatility, including the decommissioning of LIBOR and rising interest rates; 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.

    The MIL Network –

    February 26, 2025

  • MIL-OSI: Sprout Social Announces Fourth Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, Feb. 25, 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 fourth quarter ended December 31, 2024.

    “The Sprout team delivered a solid fourth quarter, driving 14% revenue growth and 26% growth in cRPO, laying the foundation for future growth in 2025 and beyond. As we work to define the future of social media management, we remain focused on execution—winning the enterprise, driving customer health, expanding our partnership ecosystem, and driving deeper engagement in our customer base,” said Ryan Barretto, CEO.

    Fourth Quarter 2024 Financial Highlights

    Revenue

    • Revenue was $107.1 million, up 14% compared to the fourth quarter of 2023.
    • Total remaining performance obligations (RPO) of $351.5 million as of December 31, 2024, up 28% year-over-year.
    • Current remaining performance obligations (cRPO) of $249.4 million as of December 31, 2024, up 26% year-over-year.

    Operating Income (Loss)

    • GAAP operating loss was ($13.7) million, compared to ($18.2) million in the fourth quarter of 2023.
    • Non-GAAP operating income was $11.4 million, compared to $1.7 million in the fourth quarter of 2023.

    Net Loss

    • GAAP net loss was ($14.4) million, compared to ($20.1) million in the fourth quarter of 2023.
    • Non-GAAP net income was $10.7 million, compared to $1.0 million in the fourth quarter of 2023.
    • GAAP net loss per share was ($0.25) based on 57.5 million weighted-average shares of common stock outstanding, compared to ($0.36) based on 56.1 million weighted-average shares of common stock outstanding in the fourth quarter of 2023.
    • Non-GAAP net income per share was $0.19 based on 57.5 million weighted-average shares of common stock outstanding, compared to $0.02 based on 56.1 million weighted-average shares of common stock outstanding in the fourth quarter of 2023.

    Cash

    • Cash and equivalents and marketable securities totaled $90.2 million as of December 31, 2024, compared to $91.5 million as of September 30, 2024.
    • Net cash provided by (used in) operating activities was $4.1 million, compared to ($2.6) million in the fourth quarter of 2023.
    • Non-GAAP free cash flow was $6.6 million, compared to ($0.3) million in the fourth quarter of 2023.

    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, the number of customers contributing over $50,000 in ARR, dollar-based net retention rate and dollar-based net retention rate excluding small-and-medium-sized business customers.

    Customer Metrics

    • Grew number of customers contributing over $10,000 in ARR to 9,327 customers as of December 31, 2024, up 7% compared to December 31, 2023.
    • Grew number of customers contributing over $50,000 in ARR to 1,718 customers as of December 31, 2024, up 23% compared to December 31, 2023.
    • Dollar-based net retention rate was 104% in 2024, compared to 107% in 2023.
    • Dollar-based net retention rate excluding small-and-medium-sized business (SMB) customers was 108% in 2024, compared to 111% in 2023.

    Recent Customer Highlights

    • During the fourth quarter, we had the opportunity to grow with new and existing customers like: Under Armour, ESPN, Rocket Mortgage, Klaviyo, Carhartt, Campbell, and Cushman & Wakefield.

    Recent Business Highlights

    Sprout Social recently:

    • Released a new Total Economic Impact™ study conducted by Forrester Consulting that found Sprout Social enabled customers to achieve a 268% return on investment (link)
    • Recognized by G2’s Best Software Awards as a top company across seven categories (link)
    • Announced rebranded influencer marketing platform to prepare brands for the next generation of social (link)
    • Launched the 2025 Sprout Social Index™ highlighting the latest trends in social culture and brand implications for the future (link)
    • Unveiled updates to its suite of AI solutions that enable marketers to unlock new potential and boost competitiveness (link)
    • Named a leader in worldwide social media marketing software for large enterprises by IDC Marketscape (link) and earned a 2025 Buyer’s Choice Award from TrustRadius (link)
    • Recognized by Built In as a Best Place to Work for the sixth consecutive year (link)

    First Quarter and 2025 Financial Outlook

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

    • Total revenue between $107.2 million and $108.0 million.
    • Non-GAAP operating income between $8.5 million and $9.5 million.
    • Non-GAAP net income per share between $0.14 and $0.16 based on approximately 58.5 million weighted-average shares of common stock outstanding.

    For the full year 2025, the Company currently expects:

    • Total revenue between $448.1 million and $453.1 million.
    • Non-GAAP operating income between $38.2 million and $43.2 million.
    • Non-GAAP net income per share between $0.65 and $0.74 based on approximately 59.3 million weighted-average shares of common stock outstanding.

    The Company’s first 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, February 25, 2025. Online registration for this event conference call can be found at https://registrations.events/direct/Q4I1913111787. 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 Q1 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 and economic conditions, such as recession risks, effects of inflation, labor shortages, supply chain issues, high interest rates, and the impacts of current and potential future bank failures and impacts of 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, 2023 filed with the SEC on February 23, 2024 and our Annual Report on Form 10-K for the year ended December 31, 2024, 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 instability in market and economic 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. During the fourth quarter of 2024, we revised our definition of non-GAAP gross profit to exclude restructuring charges associated with a workforce reorganization, consisting primarily of severance and other personnel-related costs.

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

    Non-GAAP operating income (loss). We define non-GAAP operating income (loss) as GAAP loss from operations, excluding stock-based compensation expense, acquisition-related expenses and amortization expense associated with the acquired intangible assets from the Tagger acquisition, restructuring charges and non-cash gains from lease modifications. We believe non-GAAP operating income (loss) 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, acquisition-related expenses, amortization expense, restructuring charges and non-cash gains from lease modifications, which are often unrelated to overall operating performance. During the fourth quarter of 2024, we revised our definition of non-GAAP operating income (loss) to exclude restructuring charges associated with a workforce reorganization, consisting primarily of severance and other personnel-related costs, and non-cash gain related to an office lease modification.

    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 (loss). We define non-GAAP net income (loss) as GAAP net loss, excluding stock-based compensation expense, acquisition-related expenses, amortization expense associated with the acquired intangible assets from the Tagger acquisition, tax expense due to changes in valuation allowances from business acquisitions, restructuring charges and non-cash gains from lease modifications. We believe non-GAAP net income (loss) 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, acquisition-related expenses, amortization expense and tax expense due to changes in valuation allowances from business acquisitions, restructuring charges and non-cash gains from lease modifications, which are often unrelated to overall operating performance. During the fourth quarter of 2024, we revised our definition of non-GAAP net income (loss) to exclude restructuring charges associated with a workforce reorganization, consisting primarily of severance and other personnel-related costs, and non-cash gain related to an office lease modification.

    Non-GAAP net income (loss) per share. We define non-GAAP net income (loss) per share as GAAP net loss per share attributable to common shareholders, basic and diluted, excluding stock-based compensation expense, acquisition-related expenses, amortization expense associated with the acquired intangible assets from the Tagger acquisition, tax expense due to changes in valuation allowances from business acquisitions, restructuring charges and non-cash gains from lease modifications. We believe non-GAAP net income (loss) 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, acquisition-related expenses, amortization expense, tax expense due to changes in valuation allowances from business acquisitions, restructuring charges and non-cash gains from lease modifications, which are often unrelated to overall operating performance. During the fourth quarter of 2024, we revised our definition of non-GAAP net income (loss) per share to exclude restructuring charges associated with a workforce reorganization, consisting primarily of severance and other personnel-related costs, and non-cash gain related to an office lease modification.

    Non-GAAP free cash flow. We define non-GAAP free cash flow as net cash provided by (used in) operating activities less expenditures for property and equipment, acquisition-related costs, interest 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 used in our core operations that, after expenditures for property and equipment, acquisition-related costs, interest and payments related to restructuring charges, is not available for strategic initiatives. During the fourth quarter of 2024, we revised our definition of non-GAAP free cash flow to exclude payments related to restructuring charges associated with a workforce reorganization.

    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, acquisition-related expenses, restructuring charges and non-cash gains from lease modifications. 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, acquisition-related expenses, restructuring charges and non-cash gains from lease modifications. During the fourth quarter of 2024, we revised our definition of non-GAAP general and administrative expenses to exclude restructuring charges associated with a workforce reorganization, consisting primarily of severance and other personnel-related costs, and non-cash gain related to an office lease modification.

    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.

    Dollar-based net retention rate. We calculate dollar-based net retention rate by dividing the ARR from our customers as of December 31st in the reported year by the ARR from those same customers as of December 31st in the previous year. This calculation is net of upsells, contraction, cancellation or expansion during the period but excludes ARR from new customers. We use dollar-based net retention to evaluate the long-term value of our customer relationships, because we believe this metric reflects our ability to retain and expand subscription revenue generated from our existing customers.

    Dollar-based net retention rate excluding SMB customers. We calculate dollar-based net retention rate excluding SMB customers by dividing the ARR from all customers excluding ARR from customers that we have identified or that self-identified as having less than 50 employees as of December 31st in the reported year by the ARR from those same customers as of December 31st of the previous year. This calculation is net of upsells, contraction, cancellation or expansion during the period but excludes ARR from new customers. We used dollar-based net retention excluding SMB customers to evaluate the long-term value of our larger customer relationships, because we believe this metric reflects our ability to retain and expand subscription revenue generated from our existing customers.

    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 December 31,
      2024    2023 
    Revenue      
    Subscription $ 105,922   $ 92,224
    Professional services and other 1,168   1,360
    Total revenue 107,090   93,584
    Cost of revenue(1)      
    Subscription 23,094   20,597
    Professional services and other 319   364
    Total cost of revenue 23,413   20,961
    Gross profit 83,677   72,623
    Operating expenses      
    Research and development(1) 27,627   22,661
    Sales and marketing(1) 45,889   47,380
    General and administrative(1) 23,838   20,805
    Total operating expenses 97,354   90,846
    Loss from operations (13,677)   (18,223)
    Interest expense (656)   (1,544)
    Interest income 878   1,210
    Other expense, net (620)   (118)
    Loss before income taxes (14,075)   (18,675)
    Income tax expense 342   1,402
    Net loss $ (14,417)   $ (20,077)
    Net loss per share attributable to common shareholders, basic and diluted $ (0.25)   $ (0.36)
    Weighted-average shares outstanding used to compute net loss per share, basic and diluted 57,511,942   56,098,243
           
    (1) Includes stock-based compensation expense as follows:      
       
      Three Months Ended December 31,
      2024    2023 
    Cost of revenue $ 1,046   $ 895
    Research and development 6,640   5,529
    Sales and marketing 7,017   7,770
    General and administrative 7,750   4,465
    Total stock-based compensation expense $ 22,453   $ 18,659
    Sprout Social, Inc.
    Consolidated Statements of Operations (Unaudited)
    (in thousands, except share and per share data)
           
      Twelve Months Ended December 31,
      2024   2023
    Revenue      
    Subscription $ 402,022   $ 330,458
    Professional services and other 3,886   3,185
    Total revenue 405,908   333,643
    Cost of revenue(1)      
    Subscription 90,305   75,076
    Professional services and other 1,170   1,192
    Total cost of revenue 91,475   76,268
    Gross profit 314,433   257,375
    Operating expenses      
    Research and development(1) 102,794   79,550
    Sales and marketing(1) 184,122   168,091
    General and administrative(1) 87,873   79,011
    Total operating expenses 374,789   326,652
    Loss from operations (60,356)   (69,277)
    Interest expense (3,525)   (2,754)
    Interest income 3,973   7,021
    Other expense, net (1,393)   (768)
    Loss before income taxes (61,301)   (65,778)
    Income tax expense 670   649
    Net loss $ (61,971)   $ (66,427)
    Net loss per share attributable to common shareholders, basic and diluted $ (1.09)   $ (1.19)
    Weighted-average shares outstanding used to compute net loss per share, basic and diluted 56,935,910   55,664,404
           
    (1) Includes stock-based compensation expense as follows:      
       
      Twelve Months Ended December 31,
      2024   2023
    Cost of revenue $ 3,936   $ 3,224
    Research and development 25,619   18,478
    Sales and marketing 31,544   30,116
    General and administrative 23,204   15,886
    Total stock-based compensation expense $ 84,303   $ 67,704
    Sprout Social, Inc.
    Consolidated Balance Sheets (Unaudited)
    (in thousands, except share and per share data)
           
       
      December 31, 2024   December 31, 2023
    Assets      
    Current assets      
    Cash and cash equivalents $ 86,437   $ 49,760
    Marketable securities 3,745   44,645
    Accounts receivable, net of allowances of $2,169 and $2,177 at December 31, 2024 and December 31, 2023, respectively 84,033   63,489
    Deferred Commissions 20,184   27,725
    Prepaid expenses and other assets 15,816   10,324
    Total current assets 210,215   195,943
    Marketable securities, noncurrent –   3,699
    Property and equipment, net 10,951   11,407
    Deferred commissions, net of current portion 51,653   26,240
    Operating lease, right-of-use asset 11,326   8,729
    Goodwill 121,315   121,404
    Intangible assets, net 21,914   28,065
    Other assets, net 967   1,098
    Total assets $ 428,341   $ 396,585
    Liabilities and Stockholders’ Equity      
    Current liabilities      
    Accounts payable $ 6,984   $ 6,933
    Deferred revenue 178,585   140,536
    Operating lease liability 3,747   3,948
    Accrued wages and payroll related benefits 20,567   18,362
    Accrued expenses and other 10,869   11,260
    Total current liabilities 220,752   181,039
    Revolving credit facility 25,000   55,000
    Deferred revenue, net of current portion 1,101   920
    Operating lease liability, net of current portion 14,543   15,083
    Other non-current liabilities 351   351
    Total liabilities 261,747   252,393
           
    Stockholders’ equity      
           
    Class A common stock, par value $0.0001 per share; 1,000,000,000 shares authorized; 54,219,684 and 51,277,740 shares issued and outstanding, respectively, at December 31, 2024; 52,133,594 and 49,241,563 shares issued and outstanding, respectively, at December 31, 2023 4   4
    Class B common stock, par value $0.0001 per share; 25,000,000 shares authorized; 6,687,582 and 6,480,638 shares issued and outstanding, respectively, at December 31, 2024; 7,201,140 and 6,994,196 shares issued and outstanding, respectively, at December 31, 2023 1   1
    Additional paid-in capital 558,391   471,789
    Treasury stock, at cost (37,422)   (35,113)
    Accumulated other comprehensive loss 3   (77)
    Accumulated deficit (354,383)   (292,412)
    Total stockholders’ equity 166,594   144,192
    Total liabilities and stockholders’ equity $ 428,341   $ 396,585
    Sprout Social, Inc.
    Consolidated Statements of Cash Flows (Unaudited)
    (in thousands)
           
      Three Months Ended December 31,
       2024     2023 
    Cash flows from operating activities      
    Net loss $ (14,417)   $ (20,077)
    Adjustments to reconcile net loss to net cash provided by operating activities      
    Depreciation and amortization of property, equipment and software 1,064   835
    Amortization of line of credit issuance costs 51   52
    Accretion of discount on marketable securities (23)   (470)
    Amortization of acquired intangible assets 1,474   1,604
    Amortization of deferred commissions 4,698   7,518
    Amortization of right-of-use operating lease asset 467   425
    Stock-based compensation expense 22,453   18,659
    Provision for accounts receivable allowances 236   835
    Gain on lease modification (1,570)   –
    Tax expense due to change in valuation allowance from business acquisition –   1,134
    Changes in operating assets and liabilities, excluding impact from business acquisition      
    Accounts receivable (29,908)   (19,235)
    Prepaid expenses and other current assets (729)   3,979
    Deferred commissions (13,101)   (14,522)
    Accounts payable and accrued expenses 4,650   (473)
    Deferred revenue 29,475   18,051
    Lease liabilities (678)   (919)
    Net cash provided by (used in) operating activities 4,142   (2,604)
    Cash flows from investing activities      
    Expenditures for property and equipment (888)   (629)
    Payments for business acquisition, net of cash acquired –   143
    Proceeds from maturity of marketable securities 4,900   32,657
    Net cash provided by investing activities 4,012   32,171
    Cash flows from financing activities      
    Borrowings from line of credit –   –
    Repayments of line of credit (5,000)   (20,000)
    Payments for line of credit issuance costs –   (208)
    Proceeds from employee stock purchase plan 718   912
    Employee taxes paid related to the net share settlement of stock-based awards (309)   (537)
    Net cash used in financing activities (4,591)   (19,833)
    Net increase in cash, cash equivalents, and restricted cash 3,563   9,734
    Cash, cash equivalents, and restricted cash      
    Beginning of period 86,855   43,961
    End of period $ 90,418   $ 53,695
    Sprout Social, Inc.
    Consolidated Statements of Cash Flows (Unaudited)
    (in thousands)
         
      Twelve Months Ended December 31,
       2024     2023
    Cash flows from operating activities    
    Net loss $ (61,971) $ (66,427)
    Adjustments to reconcile net loss to net cash provided by operating activities    
    Depreciation and amortization of property, equipment and software 3,890   3,137
    Amortization of line of credit issuance costs 206   86
    Accretion of discount on marketable securities (406)   (3,203)
    Amortization of acquired intangible assets 6,151   3,541
    Amortization of deferred commissions 16,347   26,582
    Amortization of right-of-use operating lease asset 1,827   1,553
    Stock-based compensation expense 84,303   67,704
    Provision for accounts receivable allowances 1,709   2,418
    Gain on lease modification (1,570)   –
    Changes in operating assets and liabilities, excluding impact from business acquisition    
    Accounts receivable (22,253)   (26,982)
    Prepaid expenses and other current assets (5,452)   444
    Deferred commissions (34,219)   (40,540)
    Accounts payable and accrued expenses 3,124   (226)
    Deferred revenue 38,230   41,918
    Lease liabilities (3,595)   (3,549)
    Net cash provided by operating activities 26,321   6,456
    Cash flows from investing activities    
    Expenditures for property and equipment (2,950)   (2,073)
    Payments for business acquisition, net of cash acquired (1,409)   (145,636)
    Purchases of marketable securities –   (63,085)
    Proceeds from maturity of marketable securities 45,085   118,621
    Proceeds from sale of marketable securities –   5,538
    Net cash provided by (used in) investing activities 40,726   (86,635)
    Cash flows from financing activities    
    Borrowings from line of credit –   75,000
    Repayments of line of credit (30,000)   (20,000)
    Payments for line of credit issuance costs –   (1,031)
    Proceeds from exercise of stock options 29   29
    Proceeds from employee stock purchase plan 1,956   2,339
    Employee taxes paid related to the net share settlement of stock-based awards (2,309)   (2,380)
    Net cash (used in) provided by financing activities (30,324)   53,957
    Net increase (decrease) in cash, cash equivalents, and restricted cash 36,723   (26,222)
    Cash, cash equivalents, and restricted cash    
    Beginning of period 53,695   79,917
    End of period $ 90,418   $ 53,695

    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 December 31,   Twelve Months Ended December 31,
       2024     2023     2024     2023 
    Reconciliation of Non-GAAP gross profit              
    Gross profit $ 83,677   $ 72,623   $ 314,433   $ 257,375
    Stock-based compensation expense 1,046   895   3,936   3,224
    Amortization of acquired developed technology 705   705   2,820   1,175
    Restructuring charges 62   –   62   –
    Non-GAAP gross profit $ 85,490   $ 74,223   $ 321,251   $ 261,774
                   
    Reconciliation of Non-GAAP operating income (loss)            
    Loss from operations $ (13,677)   $ (18,223)   $ (60,356)   $ (69,277)
    Stock-based compensation expense 22,453   18,659   84,303   67,704
    Acquisition-related expenses –   51   –   4,272
    Amortization of acquired intangible assets 1,212   1,213   4,851   2,022
    Restructuring charges 3,020   –   3,020   –
    Gain on lease modification (1,570)   –   (1,570)   –
    Non-GAAP operating income $ 11,438   $ 1,700   $ 30,248   $ 4,721
                   
    Reconciliation of Non-GAAP net income (loss)              
    Net loss $ (14,417)   $ (20,077)   $ (61,971)   $ (66,427)
    Stock-based compensation expense 22,453   18,659   84,303   67,704
    Acquisition-related expenses –   51   –   4,272
    Amortization of acquired intangible assets 1,212   1,213   4,851   2,022
    Restructuring charges 3,020   –   3,020   –
    Gain on lease modification (1,570)   –   (1,570)   –
    Tax expense due to change in valuation allowance from business acquisition –   1,134   –   –
    Non-GAAP net income $ 10,698   $ 980   $ 28,633   $ 7,571
                   
    Reconciliation of Non-GAAP net income (loss) per share            
    Net loss per share attributable to common shareholders, basic and diluted $ (0.25)   $ (0.36)   $ (1.09)   $ (1.19)
    Stock-based compensation expense 0.39   0.34   1.48   1.22
    Acquisition-related expenses –   –   –   0.08
    Amortization of acquired intangible assets 0.03   0.02   0.09   0.03
    Restructuring charges 0.05   –   0.05   –
    Gain on lease modification (0.03)   –   (0.03)   –
    Tax expense due to change in valuation allowance from business acquisition –   0.02   –   –
    Non-GAAP net income per share $ 0.19   $ 0.02   $ 0.50   $ 0.14
                   
    Reconciliation of Non-GAAP free cash flow              
    Net cash provided by (used in) operating activities $ 4,142   $ (2,604)   $ 26,321   $ 6,456
    Expenditures for property and equipment (888)   (629)   (2,950)   (2,073)
    Acquisition-related costs –   1,366   –   4,272
    Interest paid on credit facility 621   1,588   3,635   1,588
    Payments related to restructuring charges 2,682   –   2,682   –
    Non-GAAP free cash flow $ 6,557   $ (279)   $ 29,688   $ 10,243

    The MIL Network –

    February 26, 2025
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Twenty Twenty-Five

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