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Category: Commerce

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

    US Senate News:

    Source: US Whitehouse
    STRENGTHENING AMERICA’S COPPER INDUSTRY: Today, President Donald J. Trump signed a Proclamation to address the effects of copper imports on America’s national security, including by imposing tariffs on several categories of copper imports.
    The Proclamation imposes universal 50% tariffs on imports of semi-finished copper products (such as copper pipes, wires, rods, sheets, and tubes) and copper-intensive derivative products (such as pipe fittings, cables, connectors, and electrical components), effective August 1.
    The copper 232 tariffs apply to the copper content of a product; non-copper content of a product remains subject to reciprocal tariffs or other applicable duties. These tariffs do not stack.
    The copper 232 tariffs do not stack with auto 232 tariffs. If a product is subject to auto 232 tariffs, then the auto 232 tariffs apply, not the copper 232 tariffs. 
    Copper input materials (such as copper ores, concentrates, mattes, cathodes, and anodes) and copper scrap are not subject to 232 or reciprocal tariffs.

    The Proclamation directs the Secretary of Commerce to establish a product “inclusion” process to add copper derivative products to these tariffs.
    The President is also authorizing the Secretary of Commerce to take steps under the Defense Production Act to support the domestic copper industry, including:
    Requiring 25% of high-quality copper scrap produced in the United States to be sold in the United States. This will improve access to this important feedstock for domestic fabricators and secondary refiners.
    Commerce also recommended an export licensing requirement for high-quality copper scrap to ensure adequate domestic supply.

    Requiring 25% of copper input materials (such as copper ores, concentrates, mattes, cathodes, and anodes) produced in the United States to be sold in the United States – starting at 25% in 2027, increasing to 30% in 2028 and 40% in 2029. This will boost U.S. refining capacity by ensuring low-cost inputs while domestic refiners grow their operations.

    By taking these actions, President Trump is leveling the playing field for U.S. copper businesses to support a strong domestic copper industry.
    ADDRESSING THE EFFECTS OF COPPER IMPORTS: The Proclamation follows the Secretary of Commerce’s completion of a Section 232 investigation under the Trade Expansion Act of 1962, as amended.
    President Trump directed the initiation of the Section 232 investigation through Executive Order 14220 of February 25, 2025, “Addressing the Threat to National Security from Imports of Copper.” The investigation found that:
    Copper is essential to the manufacturing foundation on which U.S. national and economic security depend. Copper is a necessary input in a range of defense systems, including aircraft, ground vehicles, ships, submarines, missiles, and ammunition. It is the Department of Defense’s second-most used material, and it plays a central role in the broader U.S. industrial base.
    Foreign competitors’ predatory practices and excessive environmental regulations have undercut the American copper industry and domestic investment in smelting, refining, and fabrication facilities.
    The U.S. now has a massive trade deficit in, and an unsustainable dependence on, many foreign copper products.

    REVITALIZING DOMESTIC INDUSTRY AND REDUCING TRADE IMBALANCES: This Proclamation builds on previous actions taken by the Trump Administration to ensure U.S. trade and industrial policies serve the national interest.
    On Day One, President Trump established his America First Trade Policy to make America’s economy great again.
    President Trump signed Proclamations to close existing loopholes and exemptions and elevate tariffs on steel and aluminum to 50%.
    President Trump implemented a 10% additional tariff on imports from China in response to China’s role in the border crisis. 
    President Trump imposed reciprocal tariffs to take back America’s economic sovereignty and address nonreciprocal trade relationships that threaten our economic and national security.
    President Trump has issued several Executive Orders and Presidential Memoranda to boost mining, manufacturing, and investment in domestic industry, including by reducing regulations and eliminating bureaucracy.
    President Trump signed a Memorandum to safeguard American innovation, including the consideration of tariffs to combat digital service taxes, fines, practices, and policies that foreign governments levy on American companies.
    President Trump has initiated several other Section 232 investigations in addition to the one on which he is taking action today.

    MIL OSI USA News –

    July 31, 2025

  • MIL-OSI Asia-Pac: Remarks at press conference on “Report on Hong Kong’s Business Environment: Unique Strengths under ‘One Country, Two Systems’” (with photos/video)

    Source: Hong Kong Government special administrative region – 4

         The Financial Secretary, Mr Paul Chan; the Secretary for Commerce and Economic Development, Mr Algernon Yau; and the Acting Government Economist, Dr Cecilia Lam, held a press conference on the “Report on Hong Kong’s Business Environment: Unique Strengths under ‘One Country, Two Systems’” this afternoon (July 30). Following are their remarks:

    Reporter: I have some questions. First of all, this report seems that it is a wrapping up of all the measures over the past few years. So, what is the significance of this report to Hong Kong’s future development? Also, amid the rising challenges such as the tariff increases, how are you going to convince foreign chambers or investors to invest in Hong Kong? The last question is about the reports of the developer of 11 Skies of the Airport City project, with some reports saying that the developer has intended to sell this mega project, because of lack of tenants and also lacklustre prospects. So what is your take on the proposal of selling 11 Skies to other parties? Thank you.
     
    Financial Secretary: Thank you. First, the significance of this report. Over the past few years, because of COVID, a lot of overseas visitors didn’t have the opportunity to visit Hong Kong. Given the geopolitical landscape, there has been some misperception about the situation of Hong Kong in the western world. . We are trying very hard to reach out to the international community, to explain to them what is really happening here in Hong Kong by sharing facts and data. The purpose of this report is to recap our developments in a concise report for distribution to them, and this report will be made available online, accessible to anyone who is interested.
     
         On the question of tariffs, on the question of the China-US geopolitical tension, of course, there are challenges, for example, in terms of exports, but there are also opportunities in respect of the international financial centre status of Hong Kong. For challenges on export, the direct impact is minimal because Hong Kong is basically a service economy; we don’t have much manufacturing. On the other hand, the indirect impact could be significant, because we re-export for the Mainland. But over the years, we have seen a number of trends. One of them is Mainland companies realigning their industry bases and supply chains across Southeast Asia. For exports to certain markets, such as the US, a lot of the exports come from those regions. When you look at the figures – the export figures from the Mainland to the US, or from the Mainland via Hong Kong to the US – the share of US in Mainland’s total export has been declining.
     
         From our standpoint, we are adjusting our position. In addition to doing re-export, we have shifted to provide high-value supply chain management and the related trade finance and professional services. That is our response. For opportunities, I think we should not underestimate them. Given the geopolitical landscape, it is increasingly difficult for Mainland companies to go to the US for listing. These companies, would naturally want to come to Hong Kong for listing, because by coming to Hong Kong, they can access both international and Mainland capital. This is a very interesting value proposition to them, and has been demonstrated by the figures so far this year. In fact, we have over 200 companies in the pipeline waiting for listing. But the opportunities are more than the IPO market. Say in asset and wealth management, residents in the GBA (Guangdong-Hong Kong-Macao Greater Bay Area) are interested in having certain assets allocated offshore. Naturally, Hong Kong is the destination. The recent improvement in February last year to the GBA Wealth Management Connect – with the implementation of those measures, we have seen significant inflow of capital from the GBA into Hong Kong. In addition, we also have observed capital flow from the Middle East and ASEAN in the asset and wealth management sector. We are quite confident that, by the year 2027 and 2028 the latest – we will overtake Switzerland in cross-border wealth management.

         Another dimension is Hong Kong’s role as a “super connector” and “super value-adder” under the current geopolitical situation. We have observed Mainland companies’ keen interest to go global. First, this is national policy, i.e. high-level two-way opening up. Second, there is also a need, because these companies want to utilise the production capacity they have and do more exports. What we have been pitching to them is that the best way to do it is to come to Hong Kong, set up a company, use Hong Kong as a platform  as well as a brand to go overseas. In our experience in engaging the Middle East and ASEAN, the value of the “Hong Kong brand” is very much respected. This is one way in which we can help them. In the process, Our professional services and other service providers will benefit.
     
         Finally, on 11 Skies, I won’t comment on individual projects. But overall, the attitude of the Government is that, given the economic transition, and given the challenges currently in the non-domestic property market, banks should be supportive to their clients and help them ride through challenges. In the Hong Kong Monetary Authority, HKMA, a working group has been set up between the Hong Kong Association of Banks and the HKMA. This working group deals with individual cases with a view to helping the communication between the banks and borrowers, so that the lenders can extend a more accommodative and facilitative approach to help borrowers who have a viable business model and have a genuine interest in carrying on their business, but are just facing a liquidity crunch. That is the overall attitude of the Government. Thank you.
     
    Reporter: Hi Mr Chan. So, I just want to follow up on the previous question first. So what’s the significance of issuing the report now, like after the previous issuance of four years ago? Like, why does the Government choose to issue the new report at present? And also, you mentioned a lot of positive signs in the markets, like the stock markets booming, and Hong Kong also saw a record capital inflows in the first half of the year. So why does the Government still remain quite conservative over an uptick of the annual GDP (Gross Domestic Product) growth target for the whole year? And also, how do you see the sustainability of such momentum moving forward? And second question I also want to ask about four sectors that are facing structural changes, like you mentioned, to the retail and catering. Do you see the need to further enhance the support measures besides helping them achieve digital transformation? And finally, about the tariff truce, so the Chinese and US (United States) officials just reached agreements to extend their tariff suspension. So how do you assess the impacts on local business, and would the Government take any steps to help, perhaps exports or local businesses to take this opportunity? Thank you.
     
    Financial Secretary: Thank you. Well, the last report was published in 2021. Over the past few years, because of COVID, a lot of overseas travellers hadn’t come to Hong Kong. Given the geopolitical landscape, the perception about Hong Kong in the Western world is not entirely factual and correct. There are some misconceptions. So the purpose of this report is to show to them the current situation in Hong Kong, so that they will be able to better understand what is happening in this city. If they are interested, they are welcome to visit us to see for themselves what it is really like here and the tremendous opportunities available.
     
         As regards the question about the GDP estimate for the whole year, the GDP growth for the first half of this year has been positive. For the first quarter, the growth was 3.1 per cent; for the second quarter, we have maintained the momentum. But given the geopolitical landscape, there are enormous uncertainty and volatility. At this stage, we think it would be prudent to keep the current GDP estimate. There is in fact a mechanism, a defined timetable for reviewing the GDP estimate regularly. On a published timeline, the Government Economist will share with the community the economic situation, and determine at that time whether to make any revision. It’s better to follow that established practice as it provides certainty to the market.
     
         As to supporting the retail and catering sector, we will keep an open mind. I have elaborated on the situation and how we have been trying to help, but we will continue to closely monitor the situation and if necessary, roll out measures. At this stage, we think the current support measures should stay. Let us observe for a longer time. We have been providing various support measures such as the BUD Fund (Dedicated Fund on Branding, Upgrading and Domestic Sales) for marketing development and e-commerce.  Algernon would share more about that.
     
    Before passing to Algernon, I would say the recent discussions leading to the temporary suspension of tariff rise is, of course, a positive sign. But on the other hand, we are conscious of the fact that things can change overnight. There is still tremendous uncertainty, and consequently, volatility. So for our work, first, we need to ensure financial stability and financial security. On the other hand, stay on course, focus on what we have set out to do, and be persistent with our efforts. That includes reinforcing our relationship with traditional markets like Europe and the US, and at the same time, opening up new markets and new capital sources from the Middle East and Southeast Asia. Thank you, Algernon please.
     
    Secretary for Commerce and Economic Development: Regarding the challenges facing the retail and food and beverage sectors, we have different measures and funding helping the retail sector, such as the BUD Fund. We are also encouraging the sectors to look for changes and transformation, and e-commerce is one of the measures that we promote. Just today, we are going to launch the Hong Kong Shopping Festival for cross-border e-commerce to allow the retail sector to do more e-commerce business. For the maximum cumulative funding of $7 million per enterprise under the BUD Fund, they can apply for $1 million for e-commerce business to arrange for promotion and advertising for e-commerce business across the border.
     
    There are also measures to encourage tourists to come to Hong Kong. Actually, the number of tourists coming to Hong Kong is increasing. It is a positive sign that would help the retail sector. But most importantly, as mentioned by the Financial Secretary, it is time for transformation. We have to look at customer behaviour and their needs, and how we can satisfy customer demand. It is one of the major issues that we have to jointly resolve with enterprises. I have met with different chambers and associations of the retail sector. We had very good discussions on helping them to tackle the challenging situation. As mentioned by the Financial Secretary, we will keep an open mind to look at the situation and to see whether there is a need to introduce further measures to help the retail and food and beverage sectors. Thank you.
     
    Financial Secretary: We should be very confident in Hong Kong’s attractiveness as a hub for foreign businesses and talent. Over the past few years, I’ve been travelling a lot and also heavily engaged with the foreign business community in Hong Kong. I can summarise three key reasons why people should choose Hong Kong. First is, of course, for business reasons. Hong Kong has the proximity and sometimes priority access to the Mainland market. Depending on which sector you are in – if you are in the tech sector, say in the biotech sector, Hong Kong has an additional advantage because of our proximity to Shenzhen, and we are part of the GBA (Guangdong-Hong Kong-Macao Greater Bay Area) which is a technology hub. The Shenzhen-Hong Kong-Guangzhou cluster is very competitive in innovation.
     
        Apart from that, it is the capital market and the full range of funding options available here. For companies at different development stages, whether they are start-ups or others, we welcome them. In Hong Kong, we have around 4,700 start-ups, and the number represents a significant increase compared to that a few years ago. About 20 per cent of their founders come from overseas, and they come here for funding, professional advice, mentoring, and opportunities. In my discussions with the start-ups in Hong Kong Science Park and Cyberport, they value these as well as the innovation ecosystem very much. For start-ups, what they need are application scenarios, professional advice and funding support, and they are all available here. In Hong Kong, we have set up the Hong Kong Investment Corporation Limited, which provides patient capital. This means that if enterprises are engaged in cutting-edge technologies, we are willing to support them from small, and help them grow and connect them with fund managers to raise funds.
     
    The second reason is for their families and children. It is well recognised Hong Kong’s law and order is excellent. We are a very safe city. Education here is also outstanding. Moreover, this is an open and multicultural society, and it is very free. We have gathered a lot of overseas professionals and foreign businessmen here.
     
    Finally, it is about our lifestyle. Whether it is city life, F&B (food and beverage) or our countryside. So with all these, I think if we play our cards right, Hong Kong’s opportunities in the future are tremendous. Thank you for attending this conference. I appreciate your time. Thank you.
     
    (Please also refer to the Chinese portion of the remarks.)

            

    MIL OSI Asia Pacific News –

    July 31, 2025

  • MIL-OSI USA News: Adjusting Imports of Copper into the United States

    Source: US Whitehouse

    class=”has-text-align-center”> BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
     
    A PROCLAMATION

    1.  On June 30, 2025, the Secretary of Commerce (Secretary) transmitted to me a report on his investigation into the effects of imports of copper in all forms (copper), including copper ores, copper concentrates, refined copper, copper alloys, scrap copper, and derivative products, on the national security of the United States under section 232 of the Trade Expansion Act of 1962, as amended, 19 U.S.C. 1862 (section 232).  Based on the facts considered in that investigation, the Secretary found and advised me of his opinion that copper is being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States.

    2.  The Secretary found that the present quantities of copper imports and the circumstances of global excess capacity for producing copper are weakening our economy, resulting in the persistent threat of further closures of domestic copper production facilities and the shrinking of our ability to meet national security production requirements.  Because of these risks, and taking into account the close relation of the economic welfare of the Nation to our national security and other relevant factors, see 19 U.S.C. 1862(d), the Secretary found that the present quantities and circumstances of copper imports threaten to impair the national security as provided in section 232.

    3.  In reaching this conclusion, the Secretary found that copper is essential to the manufacturing foundation on which United States national and economic security depend.  Copper is the second most widely used material by the Department of Defense and is a necessary input in a range of defense systems, including aircraft, ground vehicles, ships, submarines, missiles, and ammunition.  Copper also plays a central role in the broader United States industrial base.  The metal’s exceptional electrical conductivity and durability also make it indispensable to critical infrastructure sectors that support the American economy, national security, and public health.  Alternatives to copper are insufficient substitutes for these vital industries and products in many circumstances.

    4.  The Secretary found that the United States was a world leader across the value chain of copper production (mining, refining, semi-finished goods, and finished goods containing copper) for most of the 20th century.  But despite copper being a crucial material in manufacturing and for the national and economic security of the United States, United States copper production has plummeted.  Today, a single foreign country dominates global copper smelting and refining, controlling over 50 percent of global smelting capacity and holding four of the top five largest refining facilities.

    5.  The Secretary found that unfair trade practices abroad, exacerbated by overly burdensome environmental regulations at home, have hollowed out United States copper refining and smelting, caused the United States to be overly reliant on foreign copper imports, and prevent a path forward without strong corrective action.  Foreign competitors leverage state subsidies and overproduction to flood international markets with artificially low-priced copper products, driving United States producers out of business.  The United States is now dangerously dependent on foreign imports of semi-finished copper, intensive copper derivative products, and copper-containing products, and imbalances in the global markets make domestic investment increasingly unviable.

    6.  The Secretary found that United States dependency on foreign sources of copper is a national security vulnerability that could be exploited by foreign countries, weakens United States industrial resilience, exposes the American people to supply chain disruptions, economic instability, and strategic vulnerabilities, and jeopardizes the United States defense industrial base. 

    7.  In light of these findings, the Secretary recommended a range of actions to adjust the imports of copper so that such imports will not threaten to impair the national security.  For example, the Secretary recommended an immediate universal 30 percent import duty on semi-finished copper products and intensive copper derivative products.  The Secretary also recommended a phased universal tariff on refined copper of 15 percent starting in 2027 and 30 percent starting in 2028.  The Secretary further recommended a domestic sales requirement for copper input materials starting at 25 percent in 2027, a domestic sales requirement of 25 percent for high-quality copper scrap, and export controls for high-quality copper scrap. 

    8.  After considering the Secretary’s report, the factors in section 232(d), 19 U.S.C. 1862(d), and other relevant factors, among other things, I concur with the Secretary’s finding that copper is being imported into the United States in quantities and under circumstances that threaten to impair the national security of the United States.  In my judgment, and in light of the Secretary’s report, the factors in section 232(d), 19 U.S.C. 1862(d), and other relevant factors, among other things, I also determine that it is necessary and appropriate to impose tariffs, as described below, to adjust imports of copper and its derivatives so that such imports will not threaten to impair the national security of the United States.

    9.  To ensure that the tariffs on copper in this proclamation are not circumvented and that the purpose of this action to address the threat to impair the national security of the United States posed by imports of copper is not undermined, I also deem it necessary and appropriate to set up a process to identify and impose tariffs on certain derivatives of copper, as further described below.

    10.  In my judgment, the action in this proclamation will, among other things, help increase domestic production of semi-finished copper products and intensive copper derivative products, thereby reducing our Nation’s reliance on foreign sources.  It will ensure that domestic fabricators are able to supply sufficient quantities of copper products essential for infrastructure, defense systems, and advanced manufacturing.  This action will also promote investment, employment, and innovation in the domestic copper fabrication sector, strengthen supply chains, enhance industrial resilience, and generate meaningful economic benefits.  This action will adjust the imports of semi-finished copper products, intensive copper derivative products, and certain other copper derivatives and is necessary and appropriate to address the threat to impair the national security of the United States posed by imports of such articles.

    11.  Section 232 authorizes the President to adjust the imports of an article and its derivatives that are being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security so that such imports will not threaten to impair the national security. 

    12.  Section 604 of the Trade Act of 1974, as amended, 19 U.S.C. 2483, authorizes the President to embody in the Harmonized Tariff Schedule of the United States (HTSUS) the substance of statutes affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.

    13.  Consistent with the General Terms for the United States of America and the United Kingdom of Great Britain and Northern Ireland Economic Prosperity Deal (May 8, 2025), the United States intends to coordinate with the United Kingdom to adopt a structured, negotiated approach to addressing the national security threat in the copper sector.

    NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by the authority vested in me by the Constitution and the laws of the United States of America, including section 232; the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); section 101 of the Defense Production Act of 1950 (DPA), as amended, 50 U.S.C. 4511; section 301 of title 3, United States Code; and section 604 of the Trade Act of 1974, as amended, 19 U.S.C. 2483, do hereby proclaim as follows:
    (1)  Except as otherwise provided in this proclamation, all imports of semi-finished copper products and intensive copper derivative products, as set forth in the Annex to this proclamation, shall be subject to a 50 percent tariff.  This tariff shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 1, 2025, and shall continue in effect, unless such action is expressly reduced, modified, or terminated.  This tariff is in addition to any other duties, fees, exactions, and charges applicable to such imported semi-finished copper products and intensive copper derivative products, unless stated otherwise below.
    (2)  The Secretary, in consultation with the United States International Trade Commission and U.S. Customs and Border Protection (CBP), shall determine whether any modifications to the HTSUS are necessary to effectuate this proclamation and shall make such modifications through notice in the Federal Register if needed.
    (3)  Within 90 days after the date of this proclamation, the Secretary shall establish a process for including additional derivative copper articles within the scope of the duties of this proclamation, consistent with the processes established pursuant to Proclamation 10895 of February 10, 2025 (Adjusting Imports of Aluminum Into the United States) and Proclamation 10896 of February 10, 2025 (Adjusting Imports of Steel Into the United States).
    (4)  The non-copper content of all copper articles subject to this proclamation shall be subject to tariffs pursuant to Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits), and any other applicable duties, including those imposed by Executive Order 14193 of February 1, 2025 (Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border), as amended, Executive Order 14194 of February 1, 2025 (Imposing Duties To Address the Situation at Our Southern Border), as amended, and Executive Order 14195 of February 1, 2025 (Imposing Duties To Address the Synthetic Opioid Supply Chain in the People’s Republic of China), as amended.  The additional duties described in clauses 1 through 3 of this proclamation shall apply only to the copper content of articles subject to this proclamation.  CBP shall issue authoritative guidance mandating strict compliance with declaration requirements for copper content in imported articles and outlining maximum penalties for noncompliance, including that importers who submit underreported declarations may be subject to severe consequences, such as significant monetary penalties, loss of import privileges, and criminal liability, consistent with United States law.
    (5)  If any product is subject to tariffs under both this proclamation and Proclamation 10908 of March 26, 2025 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), as amended, the product shall be subject to the duties imposed pursuant to Proclamation 10908, as amended, and not those imposed pursuant to this proclamation.
    (6)  Any product described in clause 1 of this proclamation, except those eligible for admission as “domestic status” as described in 19 CFR 146.43, that is subject to a duty imposed by this proclamation and that is admitted into a United States foreign trade zone on or after the effective date of this proclamation must be admitted as “privileged foreign” status as described in 19 CFR 146.41, and will be subject upon entry for consumption to any ad valorem rates of duty related to the classification under the applicable HTSUS subheading. 
    (7)  The Secretary shall continue to monitor imports of copper and its derivatives.  The Secretary shall, from time to time, in consultation with any senior executive branch officials the Secretary deems appropriate, review the status of copper and copper derivative imports with respect to national security.  The Secretary shall inform the President of any circumstances that, in the Secretary’s opinion, might indicate the need for further action by the President under section 232.  By June 30, 2026, the Secretary shall provide the President with an update on domestic copper markets, including refining capacity and the market for refined copper in the United States, so that the President may determine whether imposing a phased universal import duty on refined copper of 15 percent starting on January 1, 2027, and 30 percent starting on January 1, 2028, as recommended by the June 30, 2025, report, is warranted to ensure that copper imports do not continue to threaten to impair the national security.  The Secretary shall also inform the President of any circumstance that, in the Secretary’s opinion, might indicate that the duty rate provided for in this proclamation, or any actions modifying this proclamation, is no longer necessary.
    (8)  Separately, I find that copper input materials and high-quality copper scrap meet the criteria specified in section 101(b) of the DPA, 50 U.S.C. 4511(b).  Pursuant to the authority delegated to the Secretary in Executive Order 13603 of March 16, 2012 (National Defense Resources Preparedness), the Secretary shall take all appropriate action to implement the domestic sales requirements that he recommended in the June 30, 2025, report.
    (9)  The Secretary may issue regulations, rules, guidance, and procedures consistent with the purpose of this proclamation, including to address operational necessity.
    (10)  No drawback shall be available with respect to the duties imposed pursuant to this proclamation.
    (11)  CBP may take any necessary or appropriate measure to administer the tariff imposed by this proclamation.
    (12)  Any provision of previous proclamations and Executive Orders that is inconsistent with the actions taken in this proclamation is superseded to the extent of such inconsistency.  If any provision of this proclamation, or the application of any provision to any individual or circumstance, is held to be invalid, the remainder of this proclamation and the application of its provisions to any other individuals or circumstances shall not be affected.

    IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of July, in the year of our Lord two thousand twenty-five, and of the Independence of the United States of America the two hundred and fiftieth.
     
     
     
                                   DONALD J. TRUMP

    MIL OSI USA News –

    July 31, 2025

  • MIL-OSI USA: 07.29.2025 Sen. Cruz Introduces Bill to Establish Drone Manufacturing in Texarkana

    US Senate News:

    Source: United States Senator for Texas Ted Cruz

    WASHINGTON, D.C. – Today, U.S. Sen. Ted Cruz (R-Texas), joined by Sens. John Cornyn (R-Texas), Tom Cotton (R-Ark.), and John Boozman (R-Ark.), introduced the SkyFoundry Act of 2025 to establish a drone production facility, SkyFoundry, at the Red River Army Depot (RRAD) in Texarkana, Texas. This bill will allow RRAD to develop, produce, and field drones for the Department of Defense.
    Sen. Cruz said, “Establishing a drone manufacturing facility at the Red River Army Depot will help ensure that the United States remains at the forefront of drone production. I’m proud to see the Lone Star State continuing to lead in defense innovation, and I look forward to working with my colleagues in Congress to swiftly pass this legislation.”
    Sen. Cornyn said, “Russia and China are currently outpacing America in scalable drone production and investment, making us vulnerable to national security threats if left unmatched. This legislation seeks to close this gap and help ensure America remains competitive with our foreign adversaries by establishing a new innovation and production facility that would rapidly improve our ability to develop, test, and mass-produce small unmanned aircraft systems.”
    Sen. Cotton said, “Large-scale manufacturing of small drones is critical to the Army’s current and future operational capability. This bill is a win for national security and for Arkansas as the Skyfoundry program presents a unique opportunity to more fully utilize the Army’s organic industrial base by positioning Red River Army Depot to meet the Army’s emerging requirements.”
    Sen. Boozman said, “The men and women of the Red River Army Depot are committed to providing our servicemembers with the tools they need to defend our nation. With unmanned aircraft systems playing an increasingly prominent role in modern warfare, tasking them with developing and sustaining an adequate supply of drone systems would be a win for this skilled workforce and our armed forces. I am pleased to join my colleagues to champion this effort and the Arkansans whose vital contributions to Red River support our national security and local economy.”
    Companion legislation was introduced in the House by Rep. Pat Harrigan (R-N.C.-10).
    Rep. Harrigan said, “The future of warfare is cheap, fast, and scalable—and right now, America is none of those things. The SkyFoundry Act changes that. It creates a fully American pipeline to design, test, and mass-produce FPV drones at scale, decoupled from Chinese supply chains and driven by U.S. innovation. This initiative doesn’t just build drones; it rebuilds our defense industrial base to meet the demands of modern conflict.”
    Read the full text of the bill here.
    The Texarkana Chamber of Commerce, TexAmericas Center, and the City Manager of the City of Texarkana support the bill.
    Robin Hickerson, President & CEO of the Texarkana Chamber of Commerce said, “The Texarkana USA Regional Chamber of Commerce thanks Senators Ted Cruz, John Boozman, Tom Cotton, and John Cornyn for sponsoring the SkyFoundry Act of 2025, which supports the rapid development and production of small unmanned aircraft systems and emphasizes the use of existing Army Depot facilities. Red River Army Depot is well positioned to meet the criteria outlined in the bill, with over 15,000 acres, 8 million square feet of facilities, and a central location near four states. The Chamber commends RRAD for its flexibility and readiness to support future innovation in defense manufacturing. RRAD has long been a vital economic engine for the Texarkana region. This legislation reinforces its strategic value and opens the door for even greater impact on jobs, innovation, and national security. The Chamber stands ready to support the SkyFoundry Program and advocate for continued investment in Red River Army Depot.”
    Scott Norton, Executive Director & CEO of the TexAmericas Center said, “TexAmericas Center thanks Senator Cruz and his staff for all their efforts with the SkyFoundry Act of 2025. Utilizing a location such as Red River Army Depot for the annual production of 1,000,000 unmanned aircraft systems, and other associated systems, allows the Department of Defense to collaborate employee training and program enhancements with Texas A&M University – Texarkana, University of Arkansas Hope-Texarkana, and Texarkana College. Investing in the dedicated organic industrial base workforce emphasizes the value of the current and future workforce at Red River Army Depot and demonstrates value of our defense community to our nation’s defense. We look forward to the passing of the SkyFoundry Act of 2025 and the continued expansion of workload at Red River Army Depot.”
    David Orr, City Manager of the City of Texarkana, Texas said, “The SkyFoundry Act of 2025 represents a forward-thinking investment in advanced manufacturing of unmanned aircraft systems and workforce development that aligns with the Texarkana region’s long-standing commitment to economic growth and regional opportunity. We appreciate Senator Cruz’s leadership in advancing legislation that strengthens our national defense and the industries that power our future.”

    BACKGROUND
    The SkyFoundry Act of 2025 will:

    Establish a production facility and innovation facility for the production and development of small unmanned aircraft systems.
    Utilize a Government-Owned, Government-Operated Contractor Augmented (GOGO/CA) model, blending military, civilian, and contract personnel.
    Encourage public-private partnerships with industry, academia, and nonprofits.

    RRAD supports 3,500 direct jobs and over 9,100 total jobs, providing an economic impact of at least $1.6 billion annually to the region.

    MIL OSI USA News –

    July 31, 2025

  • MIL-OSI: MemoCore Supplement Official Launch | Memory, Focus & Natural Memo core Drops Support

    Source: GlobeNewswire (MIL-OSI)

    New York City, NY, July 30, 2025 (GLOBE NEWSWIRE) —

    MemoCore proudly announces the official launch of its revolutionary new product, MemoCore Drops, a natural brain support supplement designed to enhance memory, focus, and overall cognitive health. Developed after extensive research and testing, MemoCore Drops arrives at a time when more individuals than ever are seeking natural, stimulant-free ways to combat mental fatigue, sharpen their focus, and support long-term brain vitality.

    A Timely Solution for a Growing Concern

    Across the world, millions struggle with memory lapses, brain fog, and reduced concentration due to age, stress, digital overload, and modern lifestyle challenges. MemoCore Drops was created in direct response to this rising need for effective, non-invasive solutions that nourish the brain naturally.

    Unlike many synthetic no tropics that rely heavily on stimulants, MemoCore Drops focuses on long-term support through plant-based compounds, vitamins, and brain-healthy nutrients. The goal is not a quick burst of energy but rather sustainable improvement in clarity, recall, and cognitive resilience. Click Here to Support Your Memory & Focus Naturally

    The Vision Behind MemoCore Drops

    The MemoCore development team included neuroscientists, nutrition experts, and health specialists who dedicated more than a year to formulating a supplement that supports brain performance naturally. Their mission was clear:

    • Deliver real, sustainable cognitive support without relying on harsh stimulants.
    • Provide a clean-label product free from proprietary blends, ensuring transparency.
    • Support not just mental performance in the short term but also long-term brain health and protection.
    • Make the supplement easy to use and accessible for people of all ages.

    MemoCore Drops was born out of this vision, offering a solution tailored to meet the demands of today’s fast-paced, high-stress world.

    What Sets MemoCore Supplement Apart

    MemoCore Drops distinguishes itself from the crowded supplement market through a blend of science-backed ingredients and strict quality standards. The formulation combines time-tested botanicals with essential nutrients known to play a role in cognitive support.

    Some key highlights include:

    • A non-stimulant formula that avoids jitters, crashes, or dependency.
    • A once-daily use design that fits seamlessly into busy lifestyles.
    • Production in Good Manufacturing Practices (GMP)-certified facilities, ensuring quality and safety.
    • Transparent labeling, with no hidden blends or undisclosed ingredients.

    This commitment to transparency and safety positions MemoCore Drops as a supplement consumers can feel confident about.

    Inside the MemoCore Supplement Formula

    MemoCore Drops includes a carefully selected blend of botanicals and nutrients, each chosen for its potential benefits in supporting memory, clarity, and focus.

    • Bacopa Monnieri: A revered Ayurvedic herb linked to improved memory formation, reduced anxiety, and enhanced learning ability.
    • Ginkgo Biloba: Believed to increase cerebral blood flow, helping to support sharper thinking and clearer focus.
    • Phosphatidylserine: A crucial phospholipid that supports healthy brain cell communication and may enhance memory performance.
    • B-Vitamins: Vital for energy metabolism and nerve function, helping sustain mental clarity and reduce cognitive fatigue.

    This blend works synergistically to provide gradual, long-term benefits rather than relying on artificial energy boosts.

    Click Here to Support Your Memory & Focus Naturally

    Who Can Benefit from MemoCore Supplement Drops

    MemoCore Drops is designed to serve a wide range of individuals, making it a versatile supplement for anyone seeking cognitive support.

    • Older Adults: Helps maintain memory and clarity as part of healthy aging.
    • Students: Provides natural focus support during study sessions and exams without stimulant crashes.
    • Busy Professionals: Supports sharp decision-making and concentration during long workdays.
    • Remote Workers: Helps combat digital fatigue and maintain productivity in high-demand environments.
    • Wellness Enthusiasts: Complements holistic health routines with natural brain support.

    The simple once-daily format ensures convenience without disrupting daily routines.

    Early Reception and Market Buzz

    Since its soft introduction to select markets, MemoCore Drops has already begun generating buzz. Wellness blogs and nutrition-focused publications have praised its transparent formula and clean-label promise. Many early users have reported feeling sharper, more focused, and less mentally fatigued after consistent use.

    At the same time, Memo Core’s marketing has sparked debate. While some applaud its strong branding and professional presentation, others caution consumers to remain vigilant and look beyond advertising claims. MemoCore Supplement Drops positions itself as a serious player in the cognitive health market, but industry experts agree that long-term credibility will depend on continued transparency and clinical validation.

    Pros of MemoCore Drops

    • Non-Stimulant Formula – Provides brain support without caffeine, jitters, or crashes.
    • Scientifically Chosen Ingredients – Uses Bacopa, Ginkgo, Phosphatidylserine, and B-vitamins, all linked to cognitive health benefits.
    • Transparent Labeling – No hidden blends or undisclosed ingredients; consumers know exactly what they’re taking.
    • Supports Long-Term Brain Health – Designed for gradual improvements in memory, focus, and mental clarity.
    • Convenient Usage – Once-daily format makes it easy to integrate into any routine.
    • Made in GMP-Certified Facilities – Ensures quality, safety, and consistency with every batch.
    • Suitable for All Adults – Can be used by seniors, students, professionals, and wellness enthusiasts alike.
    • No Artificial Additives – Clean-label approach without unnecessary fillers or chemicals.
    • Supports Mental Energy and Clarity – Helps reduce brain fog and promotes clearer thinking.
    • Encourages Healthy Aging – Provides nutrients beneficial for maintaining cognitive resilience over time.

    Cons of MemoCore Drops

    • Lack of Clinical Trials – No published independent studies confirming its effectiveness.
    • Not FDA Approved – Like most supplements, it is not approved to diagnose, treat, or cure diseases.
    • Marketing Concerns – Some critics note aggressive advertising tactics that may feel exaggerated.
    • Results May Vary – Some users may notice benefits quickly, while others may need several weeks.
    • Requires Consistency – Not a quick-fix solution; effects build gradually over time.
    • Limited User Reviews – Being a newly launched product, real-world feedback is still minimal.
    • Potential Interactions – Individuals on medication or with medical conditions should consult a doctor before use.
    • No Guarantee of Results – As with most natural supplements, outcomes differ based on individual health and lifestyle.

    Strengths of MemoCore Drops

    MemoCore Drops offers several advantages that appeal to today’s health-conscious consumer:

    • No artificial stimulants: Supports clarity without jittery side effects.
    • Clean, transparent labeling: Allows users to understand exactly what they are taking.
    • Convenience: Easy daily use that integrates into any lifestyle.
    • Scientific formulation: Ingredients chosen based on established research.
    • Broad appeal: Suitable for a wide demographic, from students to seniors.

    Click Here to Support Your Memory & Focus Naturally

    Addressing Consumer Questions

    Is MemoCore Drops FDA Approved?

    MemoCore Drops is manufactured in FDA-registered facilities and follows strict GMP guidelines. However, like most dietary supplements, it is not FDA-approved and is not intended to diagnose, treat, cure, or prevent any disease.

    How Long Before Results Are Noticed?

    Most users are advised to take MemoCore Drops consistently for several weeks before noticing improvements. Because it is non-stimulant based, effects tend to build gradually over time.

    Are There Side Effects?

    MemoCore Drops is made with natural ingredients and is considered safe for most adults. However, individuals with existing medical conditions or those taking other medications should consult a healthcare provider before use.

    The Road Ahead for MemoCore Supplement Drops

    The launch of MemoCore Drops marks just the beginning of the company’s long-term vision. Plans are already underway to:

    • Expand distribution to international markets.
    • Collaborate with research institutions for further clinical studies.
    • Continue refining the formula based on consumer feedback and emerging science.
    • Build stronger educational campaigns around cognitive health and lifestyle synergy.

    By focusing on evidence-based improvements and ethical marketing, MemoCore aims to establish itself as a trusted name in brain health supplementation.

    Why MemoCore Drops Matters

    In today’s world, where mental performance is as crucial as physical well-being, MemoCore Drops offers an appealing solution. It provides natural support without resorting to synthetic stimulants or questionable quick fixes. By encouraging gradual, sustainable improvements in clarity and focus, MemoCore positions itself as a supplement for those who value long-term brain health as much as short-term performance.

    For consumers tired of overhyped energy boosters and questionable “miracle pills,” MemoCore Drops stands out as a refreshing and thoughtful alternative.

    Conclusion

    The official launch of MemoCore Drops signals an exciting chapter in the cognitive health supplement market. With its transparent formula, natural ingredients, and commitment to quality, MemoCore is poised to attract consumers seeking safe and effective brain support.

    While questions remain about its long-term impact and the need for more clinical validation, the brand’s mission to deliver sustainable cognitive wellness solutions has already begun resonating with health-conscious audiences worldwide.

    MemoCore Drops is more than a supplement; it’s a symbol of a growing movement toward holistic brain care—one that blends traditional wisdom, modern science, and consumer transparency.

    Media Contact:

    Project name: Memo Core

     Tel.: +1 (434) 425-7300

     Company Number: 306178201

     Full Name: Harry Bailey

     Website: https://getmemocore.com/

     Email: support@Memocore.com

    Attachment

    The MIL Network –

    July 31, 2025

  • MIL-OSI: Eos Energy Enterprises Delivers Record Quarterly Revenue Nearly Equivalent to Full Year 2024, Reports Second Quarter 2025 Financial Results and Reaffirms 2025 Revenue Outlook

    Source: GlobeNewswire (MIL-OSI)

    • $15.2 million revenue, highest in Company history and nearly equivalent to full year 2024
    • Z3 customer system performance, averaging nearly 88% RTE across multiple cycles and peaking at 89.5% on its highest individual cycle
    • Closed $336 million in concurrent offerings of common stock and convertible senior notes, strengthening the Company’s balance sheet and creating enhanced financial flexibility
    • Received $22.7 million for its second loan advance from the Department of Energy’s (DOE) Loan Programs Office, totaling $91 million in funding since November 2024 loan closing
    • Extended its 26.5% convertible senior notes maturity to September 30, 2034, and reduced interest rate from 26.5% to 7.0%, beginning on June 30, 2026
    • $18.8 billion commercial pipeline increased $3.2 billion vs. prior quarter led by over 10 GWh submitted to the UK Cap & Floor scheme, 15% sequential growth in 8-hour plus duration projects
    • Continuing capacity expansion: sub-assembly automation ramping in third quarter while second state-of-the-art manufacturing line on order
    • One Big Beautiful Bill Act (OBBBA) preserves manufacturing production tax credits with full stackability and transferability through 2029; Eos domestic content exceeds FEOC requirements for customer ITC
    • Reaffirms 2025 full year revenue guidance range of $150 million – $190 million

    EDISON, N.J., July 30, 2025 (GLOBE NEWSWIRE) — Eos Energy Enterprises, Inc. (NASDAQ: EOSE) (“Eos” or the “Company”) is an American energy company and the leading innovator in designing, sourcing, manufacturing, and providing zinc-based battery energy storage systems (BESS) manufactured in the United States, today announced its financial results for the second quarter ended June 30, 2025.

    Second Quarter Highlights

    • Record quarterly revenue of $15.2 million, a 46% increase compared to the prior quarter and up 17x from the same period last year, driven by increased production volumes. Factory shipments increased 122% quarter-over-quarter, with 50% of the production volume delivered for a strategic customer project.   
    • Gross loss of $31.0 million, a 32-point margin improvement from the prior quarter, driven by increased production volumes and operational efficiencies partially offset by one-time lower than average selling prices.
    • Operating expenses totaled $32.9 million, a decrease from prior quarter excluding $5.4 million in one-time non-recurring items.
    • $222.9 million net loss attributable to shareholders driven by $151.8 million non-cash changes in fair value tied to mark-to-market adjustments related to the Company’s increased stock price as of June 30, 2025, loss recorded for the repurchase of the Company’s outstanding 2026 convertible notes, and loss recorded as part of the prepayment under the Delayed Draw Term Loan.
    • Adjusted EBITDA loss of $51.6 million, a 75-point margin improvement from prior quarter, driven by improved gross margins and operational leverage.
    • Total cash of $183.2 million, including restricted cash, as of June 30, 2025.
    • Commercial opportunity pipeline of $18.8 billion, an increase of 21% compared to prior quarter and 37% compared to June 30, 2024, with a $672.5 million orders backlog.

    “The team delivered our strongest operational quarter to date – production scaled rapidly prior to subassembly fully coming online, revenue nearly surpassed all of 2024, and Z3 customer field data has been outperforming its initial product specifications for round trip efficiency,” said Joe Mastrangelo, Eos Chief Executive Officer. “We’ve made significant progress in advancing our commercial pipeline, while improving our operating performance. We are continuing to expand our manufacturing capacity to provide our customers with the confidence in Eos’ ability to deliver large scale projects.”

    2025 Outlook

    • For the full year 2025, Eos continues to expect revenue between $150 million and $190 million. Less than two years ago, the Company initiated its manufacturing expansion plan. Last year, it successfully launched its first state-of-the-art manufacturing line with battery modules being produced every 10 seconds. To further increase capacity and drive cost reductions, Eos is now implementing subassembly automation which should more than double the throughput of the battery module line. Together, these two programs allow the Company to ramp production in the second half of 2025 to an annualized rate of 2 GWh per year.

    Recent Business Highlights

    Commercial Growth
    Macro-level trends are driving a secular shift in power demand, with industries such as artificial intelligence and data centers accelerating the need for resilient, scalable energy infrastructure. Meeting this demand will require a diverse mix of energy solutions, and Eos is well-positioned to be a key contributor to America’s energy independence. In the second quarter, the Company added $3.2 billion to its commercial pipeline, bringing the total to $18.8 billion, representing 77 GWh of energy storage capacity with approximately 20% of it being connected to the build out of data centers.

    Eos continues to advance three large Memorandum of Understanding (MOUs) totaling 6.2 GWh along with several emerging large-scale opportunities. Early in the quarter, Eos signed a 5 GWh MOU with Frontier Power, a leading UK developer of energy infrastructure. Since then, Frontier has submitted over 10 GWh of projects using Eos technology to the UK’s Cap and Floor scheme — more than double the original commitment — highlighting strong UK demand for 8-hour plus storage.

    More than half of Eos’ pipeline is now stand-alone energy storage projects as system operators increasingly look for solutions that manage grid volatility, ease congestion, and minimize curtailment across all types of power generating assets. Crucially, stand-alone storage remains fully eligible under Section 48E of the Investment Tax Credit (ITC) under the OBBBA. With over 90% domestic content, Eos is strongly positioned to meet evolving Foreign Entity of Concern (FEOC) requirements offering customers both energy security and the ability to maximize domestic energy incentives.

    Enhanced Liquidity to Accelerate Growth
    During the quarter, Eos executed and closed $336 million in concurrent offerings of common stock and convertible senior notes. The offerings were significantly oversubscribed, demonstrating strong investor confidence in Eos’ growth potential and progress against its strategic plan. These transformative transactions mark a critical inflection point that unlock the financial flexibility required to scale operations and meet long duration energy storage demand.

    The offerings also allowed the Company to restructure key portions of its debt, materially lowering its cost of capital while strengthening its balance sheet, with the overall transaction resulting in approximately $400 million in savings over the prior terms of the Company’s debt.

    Post quarter end, the Company also extended the maturity of its 26.5% convertible senior notes to September 30, 2034, and reduced the interest rate from 26.5% to 7.0% beginning on June 30, 2026. At the same time, an affiliate of Cerberus Capital Management, L.P. (“Cerberus”) granted a no-penalty extension until and through October 31, 2025, for the Company to achieve the last cash receipt milestone under its Delayed Draw Term Loan. This is the last outstanding performance milestone under the Delayed Draw Term Loan facility.

    Earnings Conference Call and Webcast
    Eos will host a conference call to discuss its second quarter 2025 results on July 31, 2025, at 8:30 a.m. ET. The live webcast of the earnings call will be available on the “Investor Relations” page of the Company’s website at Eos Investors or may be accessed using this link (registration link). To avoid delays, we encourage participants to join the conference call fifteen minutes ahead of the scheduled start time.

    The conference call will be available via webcast through Eos’ investor relations website for twelve months following the live presentation. The webcast replay will be available from approximately 11:30 a.m. ET on July 31, 2025, and can be accessed by visiting Eos Investors.

    About Eos Energy Enterprises

    Eos is accelerating the shift to American energy independence with positively ingenious solutions that transform how the world stores power. The Company’s BESS features the innovative Znyth™ technology, a proven chemistry with readily available non-precious earth components, that is the pre-eminent safe, non-flammable, secure, stable, and scalable alternative to conventional lithium-ion technology. The Company’s BESS is ideal for utility-scale, microgrid, commercial, and industrial long-duration energy storage applications (i.e., 4 to 16+ hours), and provides customers with significant operational flexibility to effectively address current and future increased grid demand and complexity. For more information about Eos (NASDAQ: EOSE), visit eose.com.

    Forward Looking Statements

    Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding our expected revenue, for the fiscal years December 31, 2025, our path to profitability and strategic outlook, statements regarding orders backlog and opportunity pipeline, statements regarding our expectation that we can continue to increase product volume on our state-of-the-art manufacturing line, statements regarding our future expansion and its impact on our ability to scale up operations, statements regarding our expectation that we can continue to strengthen our overall supply chain, statements regarding our expectation that our new comprehensive insurance program will provide increased operational and economic certainty, statements that refer to the delayed draw term loan with Cerberus, milestones thereunder and the anticipated use of proceeds, statements that refer to outlook, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are based on our management’s beliefs, as well as assumptions made by, and the information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected.

    Factors which may cause actual results to differ materially from current expectations include, but are not limited to: changes adversely affecting the business in which we are engaged; our ability to forecast trends accurately; our ability to generate cash, service indebtedness and incur additional indebtedness; our ability to achieve the operational milestones on the delayed draw term loan; our ability to raise financing in the future; risks associated with the credit agreement with Cerberus, including risks of default, dilution of outstanding Common Stock, consequences for failure to meet milestones and contractual lockup of shares; our customers’ ability to secure project financing; the amount of final tax credits available to our customers or to Eos pursuant to the Inflation Reduction Act; the timing and availability of future funding under the Department of Energy Loan Facility; our ability to continue to develop efficient manufacturing processes to scale and to forecast related costs and efficiencies accurately; fluctuations in our revenue and operating results; competition from existing or new competitors; our ability to convert firm order backlog and pipeline to revenue; risks associated with security breaches in our information technology systems; risks related to legal proceedings or claims; risks associated with evolving energy policies in the United States and other countries and the potential costs of regulatory compliance; risks associated with changes to the U.S. trade environment; our ability to maintain the listing of our shares of common stock on NASDAQ; our ability to grow our business and manage growth profitably, maintain relationships with customers and suppliers and retain our management and key employees; risks related to the adverse changes in general economic conditions, including inflationary pressures and increased interest rates; risk from supply chain disruptions and other impacts of geopolitical conflict; changes in applicable laws or regulations; the possibility that Eos may be adversely affected by other economic, business, and/or competitive factors; other factors beyond our control; risks related to adverse changes in general economic conditions; and other risks and uncertainties.

    The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in the Company’s most recent filings with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that the Company makes with the Securities and Exchange Commission from time to time. Moreover, the Company operates in a very competitive and rapidly changing environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this press release.

    Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise

    Key Metrics

    Backlog. Our backlog represents the amount of revenue that we expect to realize from existing agreements with our customers for the sale of our battery energy storage systems and performance of services. The backlog is calculated by adding new orders in the current fiscal period to the backlog as of the end of the prior fiscal period and then subtracting the shipments in the current fiscal period. If the amount of an order is modified or cancelled, we adjust orders in the current period and our backlog accordingly, but do not retroactively adjust previously published backlogs. There is no comparable US-GAAP financial measure for backlog. We believe that the backlog is a useful indicator regarding the future revenue of our Company.

    Pipeline. Our pipeline represents projects for which we have submitted technical proposals or non-binding quotes plus letters of intent (“LOI”) or firm commitments from customers. Pipeline does not include lead generation projects.

    Booked Orders. Booked orders are orders where we have legally binding agreements with a Purchase Order (“PO”), or Master Supply Agreement (“MSA”) executed by both parties.

    Non-GAAP Financial Measures

    To provide investors with additional information regarding our financial results, we have disclosed in this earnings release non-GAAP financial measures, including adjusted EBITDA and adjusted EPS, which are non-GAAP financial measures as defined under the rules of the SEC. These non-GAAP financial measures should be considered supplemental to, not a substitute for, or superior to, the financial measures of the Company’s calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes adjusted EBITDA, and adjusted EPS are useful measures in evaluating its financial and operational performance distinct and apart from financing costs, certain non-cash expenses and non-operational expenses.

    We believe that non-GAAP financial information, when taken collectively may be helpful to our investors in assessing its operating performance. There are a number of limitations related to the use of these non-GAAP financial measures and their nearest GAAP equivalents. For example, the Company’s definitions of non-GAAP financial measures may differ from non-GAAP financial measures used by other companies. Below is a description of the non-GAAP financial information included herein as well as reconciliations to the most directly comparable GAAP measure. You should review the reconciliations below but not rely on any single financial measure to evaluate our business.

    Adjusted EBITDA is defined as earnings (net loss) attributable to Eos adjusted for interest expense, income tax, depreciation and amortization, non-cash stock-based compensation expense, change in fair value of debt and derivatives, debt extinguishment, and other non-cash or non-recurring items as determined by management which it does not believe to be indicative of its underlying business trends. Adjusted EPS is defined as GAAP net loss per common share as adjusted for non-cash stock-based compensation expense change in fair value of debt and derivatives and debt extinguishment per common share.

    EOS ENERGY ENTERPRISES, INC.
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
    (In thousands, except share and per share amounts)
        Three Months Ended June 30,   Six Months Ended June 30,
          2025       2024       2025       2024  
    Revenue   $ 15,236     $ 898     $ 25,693     $ 7,499  
    Cost of goods sold     46,189       14,121       81,185       42,350  
    Gross profit (loss)     (30,953 )     (13,223 )     (55,492 )     (34,851 )
    Operating expenses                
    Research and development expenses     7,201       4,250       14,038       9,450  
    Selling, general and administrative expenses     25,488       11,293       46,483       25,535  
    Loss from write-down of property, plant and equipment     205       271       766       336  
    Total operating expenses     32,894       15,814       61,287       35,321  
    Operating Loss     (63,847 )     (29,037 )     (116,779 )     (70,172 )
    Other (expense) income                
    Interest expense, net     (2,129 )     (3,515 )     (2,293 )     (7,782 )
    Interest expense – related party     (4,510 )     (4,912 )     (10,291 )     (9,763 )
    Change in fair value of debt – related party     31,615       (240 )     25,682       (240 )
    Change in fair value of warrants     (57,936 )     (7,941 )     (12,011 )     (5,041 )
    Change in fair value of derivatives – related parties     (76,455 )     (47,727 )     (41,869 )     (47,193 )
    (Loss) gain on debt extinguishment     (49,063 )     68,478       (49,063 )     68,478  
    Other expense     (606 )     (3,270 )     (1,166 )     (3,134 )
    Loss before income taxes   $ (222,931 )   $ (28,164 )   $ (207,790 )   $ (74,847 )
    Income tax expense     6       8       11       33  
    Net Loss attributable to shareholders   $ (222,937 )   $ (28,172 )   $ (207,801 )   $ (74,880 )
    Remeasurement of Preferred Stock – related party     (21,385 )     (23,671 )     58,612       (23,671 )
    Down round deemed dividend     (4,456 )     —       (4,456 )     —  
    Net Loss attributable to common shareholders   $ (248,778 )   $ (51,843 )   $ (153,645 )   $ (98,551 )
    Other Comprehensive Loss                
    Change in fair value of debt – credit risk – related party   $ (6,224 )   $ —     $ (6,224 )   $ —  
    Foreign currency translation adjustment     14       1       21       (4 )
    Comprehensive Loss attributable to common shareholders   $ (254,988 )   $ (51,842 )   $ (159,848 )   $ (98,555 )
                     
    Basic and diluted Loss per share attributable to common shareholders
    Basic   $ (1.05 )   $ (0.25 )   $ (0.66 )   $ (0.48 )
    Diluted   $ (1.05 )   $ (0.25 )   $ (0.66 )   $ (0.48 )
                     
    Weighted average shares of common stock                
    Basic     237,741,328       211,137,189       231,616,540       206,225,126  
    Diluted     237,741,328       211,137,189       231,616,540       206,225,126  
                                     
    EOS ENERGY ENTERPRISES, INC.
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands, except share and per share amounts)
      June 30,
    2025    		   December 31,
    2024
    Balance sheet data      
    Cash and cash equivalents $ 120,225     $ 74,292  
    Other current assets $ 112,052     $ 105,620  
    Property, plant and equipment, net $ 75,533     $ 45,660  
    Other assets $ 53,185     $ 34,746  
    Total assets $ 360,995     $ 260,318  
    Total liabilities $ 931,693     $ 842,085  
    Mezzanine equity – preferred stock $ 532,269     $ 488,696  
    Total deficit $ (1,102,967 )   $ (1,070,463 )
                   
    EOS ENERGY ENTERPRISES, INC.
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands, except share and per share amounts)
      Six Months Ended
    June 30,
        2025       2024  
    Net cash used in operating activities $ (95,046 )   $ (66,807 )
    Net cash used in investing activities   (11,959 )     (10,299 )
    Net cash provided by financing activities   186,820       50,024  
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   (2 )     (6 )
    Net increase (decrease) in cash, cash equivalents and restricted cash   79,813       (27,088 )
    Cash, cash equivalents and restricted cash, beginning of the period   103,362       84,667  
    Cash, cash equivalents and restricted cash, end of the period $ 183,175     $ 57,579  
                   
    EOS ENERGY ENTERPRISES, INC.
    UNAUDITED RECONCILIATION OF NET LOSS TO EBITDA LOSS AND ADJUSTED EBITDA LOSS
    (In thousands)
      Three Months Ended
    June 30,    		   Six Months Ended
    June 30,
        2025       2024       2025       2024  
    Net loss $ (222,937 )   $ (28,172 )   $ (207,801 )   $ (74,880 )
    add: Interest expense   6,639       8,427       12,584       17,545  
    add: Income tax expense   6       8       11       33  
    add: Depreciation and amortization   2,935       1,371       5,615       2,568  
    EBITDA loss   (213,357 )     (18,366 )     (189,591 )     (54,734 )
    add: Stock based compensation   7,127       1,857       14,701       4,798  
    add: Change in fair value of derivatives   134,390       55,668       53,880       52,234  
    (deduct) add: Change in fair value of debt   (31,615 )     240       (25,682 )     240  
    add (deduct): (Gain) loss on debt extinguishment   49,063       (68,478 )     49,063       (68,478 )
    add: Other non-cash or non-recurring   2,766       —       2,766       —  
    Adjusted EBITDA loss $ (51,626 )   $ (29,079 )   $ (94,863 )   $ (65,940 )
                                   
    EOS ENERGY ENTERPRISES, INC.
    UNAUDITED RECONCILIATION OF NET LOSS TO ADJUSTED NET LOSS PER SHARE
    (In thousands)
      Three Months Ended
    June 30,    		   Six Months Ended
    June 30,
        2025       2024       2025       2024  
    Net loss attributable to common shareholders $ (248,778 )   $ (51,843 )   $ (153,645 )   $ (98,551 )
    add: Stock based compensation   7,127       1,857       14,701       4,798  
    add: Change in fair value of derivatives   134,390       55,668       53,880       52,234  
    (deduct) add: Change in fair value of debt   (31,615 )     240       (25,682 )     240  
    add (deduct): (Gain) loss on debt extinguishment   49,063       (68,478 )     49,063       (68,478 )
    add: Other non-cash or non-recurring   2,766       —       2,766       —  
    Adjusted net loss attributable to common shareholders $ (87,047 )   $ (62,556 )   $ (58,917 )   $ (109,757 )
                   
    Basic and diluted loss per share attributable to common shareholders        
    Basic $ (1.05 )   $ (0.25 )   $ (0.66 )   $ (0.48 )
    Diluted $ (1.05 )   $ (0.25 )   $ (0.66 )   $ (0.48 )
                   
    Basic and diluted adjusted loss per share attributable to common shareholders    
    Basic $ (0.37 )   $ (0.30 )   $ (0.25 )   $ (0.53 )
    Diluted $ (0.37 )   $ (0.30 )   $ (0.25 )   $ (0.53 )
                   
    Weighted average shares of common stock              
    Basic   237,741,328       211,137,189       231,616,540       206,225,126  
    Diluted   237,741,328       211,137,189       231,616,540       206,225,126  

    The MIL Network –

    July 31, 2025

  • MIL-OSI: Columbia Financial, Inc. Announces Financial Results for the Second Quarter Ended June 30, 2025

    Source: GlobeNewswire (MIL-OSI)

    FAIR LAWN, N.J., July 30, 2025 (GLOBE NEWSWIRE) — Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the mid-tier holding company for Columbia Bank (“Columbia”), reported net income of $12.3 million, or $0.12 per basic and diluted share, for the quarter ended June 30, 2025, as compared to $4.5 million, or $0.04 per basic and diluted share, for the quarter ended June 30, 2024. Earnings for the quarter ended June 30, 2025 reflected higher net interest income due to both an increase in interest income and a decrease in interest expense, higher non-interest income and a decrease in non-interest expense, partially offset by higher income tax expense.

    For the six months ended June 30, 2025, the Company reported net income of $21.2 million, or $0.21 per basic and diluted share, as compared to $3.4 million, or $0.03 per basic and diluted share, for the six months ended June 30, 2024. Earnings for the six months ended June 30, 2025 reflected higher net interest income due to both an increase in interest income and a decrease in interest expense, a decrease in provision for credit losses and higher non-interest income, and a decrease in non-interest expense, partially offset by higher income tax expense.

    Mr. Thomas J. Kemly, President and Chief Executive Officer commented: “We are pleased with our results for the second quarter of 2025, which reflect a substantial increase in earnings and the continued expansion of our net interest margin resulting from our previously announced strategies. During the quarter, we also experienced solid loan growth, complemented by the purchase of approximately $130.9 million in commercial equipment finance loans. Assets and deposits continued to increase throughout the 2025 period, and we reduced our overall operating costs.”

    Results of Operations for the Three Months Ended June 30, 2025 and June 30, 2024

    Net income of $12.3 million was recorded for the quarter ended June 30, 2025, an increase of $7.8 million, as compared to net income of $4.5 million for the quarter ended June 30, 2024. The increase in net income was primarily attributable to a $9.6 million increase in net interest income, a $993,000 increase in non-interest income and a $1.3 million decrease in non-interest expense, partially offset by a $3.9 million increase in income tax expense.

    Net interest income was $53.7 million for the quarter ended June 30, 2025, an increase of $9.6 million, or 21.8%, from $44.1 million for the quarter ended June 30, 2024. The increase in net interest income was primarily attributable to a $3.2 million increase in interest income and a $6.4 million decrease in interest expense on deposits and borrowings. The increase in interest income was primarily due to an increase in the average balance of loans coupled with an increase in average yields on loans and securities. During the fourth quarter of 2024 the Company implemented a balance sheet repositioning transaction which resulted in an increase in the average yield on securities and a decrease in the cost of borrowings, which had a notable impact on net interest income for the quarter ended June 30, 2025. The 100 basis point decrease in market interest rates during the last four months of 2024 contributed to lower interest rates paid on new and repricing deposits and borrowings during the quarter ended June 30, 2025. Prepayment penalties, which are included in interest income on loans, totaled $615,000 for the quarter ended June 30, 2025, compared to $436,000 for the quarter ended June 30, 2024.

    The average yield on loans for the quarter ended June 30, 2025 increased 3 basis points to 4.96%, as compared to 4.93% for the quarter ended June 30, 2024. Interest income on loans increased due to an increase in both the average balance and yield on loans. The average yield on securities for the quarter ended June 30, 2025 increased 66 basis points to 3.55%, as compared to 2.89% for the quarter ended June 30, 2024. This was a result of lower yielding securities sold as part of the balance sheet repositioning transaction implemented in the fourth quarter of 2024 being replaced with higher yielding securities purchased in 2024 and throughout the six months ended June 30, 2025. The average yield on other interest-earning assets for the quarter ended June 30, 2025 decreased 114 basis points to 5.16%, as compared to 6.30% for the quarter ended June 30, 2024, mainly due to a 150 basis point decrease in the dividend rate received on Federal Home Loan Bank stock.

    Total interest expense was $62.8 million for the quarter ended June 30, 2025, a decrease of $6.4 million, or 9.3%, from $69.2 million for the quarter ended June 30, 2024. The decrease in interest expense was primarily attributable to a 19 basis point decrease in the average cost of interest-bearing deposits along with a 52 basis point decrease in the average cost of borrowings, coupled with a decrease in the average balance of borrowings, partially offset by an increase in the average balance of interest-bearing deposits. Interest expense on deposits decreased $482,000, or 1.0%, and interest expense on borrowings decreased $5.9 million, or 30.6% for the quarter ended June 30, 2025 as compared to the quarter ended June 30, 2024.

    The Company’s net interest margin for the quarter ended June 30, 2025 increased 38 basis points to 2.19% when compared to 1.81%, due to an increase in the average yield on interest-earning assets coupled with a decrease in the average cost of interest-bearing liabilities. The weighted average yield on interest-earning assets increased 11 basis points to 4.75% for the quarter ended June 30, 2025 as compared to 4.64% for the quarter ended June 30, 2024. The average cost of interest-bearing liabilities decreased 31 basis points to 3.18% for the quarter ended June 30, 2025 as compared to 3.49% for the quarter ended June 30, 2024.

    Non-interest income was $10.2 million for the quarter ended June 30, 2025, an increase of $993,000, or 10.8%, from $9.2 million for the quarter ended June 30, 2024. The increase was primarily attributable to an increase of $425,000 in demand deposit account fees mainly related to commercial account treasury services, an increase of $366,000 in loan fees and service charges related to swap income, gains on securities transactions of $336,000, and a $281,000 gain on the sale of real estate owned, partially offset by a decrease of $693,000 in other non-interest income. The gain on the sale of other real estate owned resulted from the sale of a commercial real estate property acquired by foreclosure in 2024 with a book value of $1.3 million which was sold in June 2025.

    Non-interest expense was $44.9 million for the quarter ended June 30, 2025, a decrease of $1.3 million, or 2.9%, from $46.2 million for the quarter ended June 30, 2024. The decrease was primarily attributable to a decrease in professional fees of $1.0 million, as legal, regulatory, and compliance-related costs were higher in the 2024 period, a decrease in merger-related expenses of $692,000, and a decrease in other non-interest expense of $798,000.

    Income tax expense was $4.2 million for the quarter ended June 30, 2025, an increase of $3.9 million, as compared to income tax expense of $279,000 for the quarter ended June 30, 2024, mainly due to an increase in pre-tax income. The Company’s effective tax rate was 25.4% and 5.8% for the quarters ended June 30, 2025 and 2024, respectively. The effective tax rate for the 2024 period was primarily impacted by permanent income tax differences.

    Results of Operations for the Six Months Ended June 30, 2025 and June 30, 2024

    Net income of $21.2 million was recorded for the six months ended June 30, 2025, an increase of $17.8 million, or 526.4%, compared to net income of $3.4 million for the six months ended June 30, 2024. The increase in net income was primarily attributable to a $17.7 million increase in net interest income, a $2.1 million decrease in provision for credit losses, a $2.0 million increase in non-interest income and a $3.2 million decrease in non-interest expense, partially offset by a $7.2 million increase in income tax expense.

    Net interest income was $104.0 million for the six months ended June 30, 2025, an increase of $17.7 million, or 20.6%, from $86.3 million for the six months ended June 30, 2024. The increase in net interest income was primarily attributable to a $6.7 million increase in interest income and a $11.0 million decrease in interest expense on deposits and borrowings. The increase in interest income was primarily due to an increase in the average balance of loans coupled with an increase in the average yields on loans and securities. During the fourth quarter of 2024 the Company implemented a balance sheet repositioning transaction which resulted in an increase in the average yield on securities and a decrease in the cost of borrowings, which had a notable impact on net interest income for the six months ended June 30, 2025. The 100 basis point decrease in market interest rates during the last four months of 2024 contributed to a decrease in interest rates paid on new and repricing deposits and borrowings during the six months ended June 30, 2025. The decrease in interest expense on borrowings was also impacted by a decrease in the average balance of borrowings and the decrease in the cost of new borrowings. Prepayment penalties, which are included in interest income on loans, totaled $872,000 for the six months ended June 30, 2025, compared to $703,000 for the six months ended June 30, 2024.

    The average yield on loans for the six months ended June 30, 2025 increased 6 basis points to 4.92%, as compared to 4.86% for the six months ended June 30, 2024. Interest income on loans increased due to an increase in both the average balance and yield on loans. The average yield on securities for the six months ended June 30, 2025 increased 73 basis points to 3.50%, as compared to 2.77% for the six months ended June 30, 2024. This was a result of lower yielding securities sold as part of the balance sheet repositioning transaction implemented in the fourth quarter of 2024 being replaced with higher yielding securities purchased in 2024 and throughout the six months ended June 30, 2025. The average yield on other interest-earning assets for the six months ended June 30, 2025 decreased 72 basis points to 5.47%, as compared to 6.19% for the six months ended June 30, 2024, due to lower dividends received on Federal Home Loan Bank stock.

    Total interest expense was $124.6 million for the six months ended June 30, 2025, a decrease of $11.0 million, or 8.1%, from $135.6 million for the six months ended June 30, 2024. The decrease in interest expense was primarily attributable to a 10 basis point decrease in the average cost of interest-bearing deposits along with a 53 basis point decrease in the average cost of borrowings coupled with a decrease in the average balance of borrowings. Interest expense on deposits increased $1.2 million, or 1.3%, and interest expense on borrowings decreased $12.3 million, or 32.8% for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.

    The Company’s net interest margin for the six months ended June 30, 2025 increased 37 basis points to 2.15%, when compared to 1.78% for the six months ended June 30, 2024. The net interest margin increased for the six months ended June 30, 2025, due to an increase in the average yield on interest-earning assets coupled with a decrease in the average cost of interest-bearing liabilities. The weighted average yield on interest-earning assets increased 15 basis points to 4.72% for the six months ended June 30, 2025, as compared to 4.57% for the six months ended June 30, 2024. The average cost of interest-bearing liabilities decreased 25 basis points to 3.19% for the six months ended June 30, 2025, as compared to 3.44% for the six months ended June 30, 2024.

    The provision for credit losses for the six months ended June 30, 2025 was $5.4 million, a decrease of $2.1 million, or 27.7% from $7.5 million for the six months ended June 30, 2024. The decrease in provision for credit losses was primarily attributable to a decrease in net charge-offs, which totaled $4.1 million for the six months ended June 30, 2025 as compared to $5.5 million for the six months ended June 30, 2024, and a decrease in quantitative loss rates based on the evaluation of current and projected economic conditions.

    Non-interest income was $18.6 million for the six months ended June 30, 2025, an increase of $2.0 million, or 12.1%, from $16.6 million for the six months ended June 30, 2024. The increase was primarily attributable to an increase in gain on securities transactions of $1.6 million, an increase of $900,000 in demand deposit account fees mainly related to commercial account treasury services, an increase of $461,000 in loan fees and service charges related to swap income and a $281,000 gain on the sale of real estate owned, partially offset by a decrease of $2.0 million in other non-interest income.

    Non-interest expense was $88.8 million for the six months ended June 30, 2025, a decrease of $3.2 million, or 3.4% from $91.9 million for the six months ended June 30, 2024. The decrease was primarily attributable to a decrease in federal deposit insurance premiums of $615,000, a decrease in professional fees of $3.1 million, a decrease in merger-related expenses of $714,000 and a decrease in other non-interest expense of $1.3 million, partially offset by an increase in compensation and employee benefits expense of $2.3 million. Professional fees for legal, regulatory and compliance-related costs decreased in the 2025 period.

    Income tax expense was $7.3 million for the six months ended June 30, 2025, an increase of $7.2 million, as compared to income tax expense of $150,000 for the six months ended June 30, 2024, mainly due to an increase in pre-tax income. The Company’s effective tax rate was 25.6% and 4.2% for the six months ended June 30, 2025 and 2024, respectively. The effective tax rate for the 2024 period was impacted by permanent income tax differences.

    Balance Sheet Summary

    Total assets increased $263.5 million, or 2.5%, to $10.7 billion at June 30, 2025 as compared to $10.5 billion at December 31, 2024. The increase in total assets was primarily attributable to an increase in debt securities available for sale of $31.0 million, and an increase in loans receivable, net, of $254.1 million, partially offset by a decrease in cash and cash equivalents of $41.0 million.

    Cash and cash equivalents decreased $41.0 million, or 14.2%, to $248.2 million at June 30, 2025 from $289.2 million at December 31, 2024. The decrease was primarily attributable to purchases of securities of $159.3 million, purchases of loans of $150.9 million and the origination of loans receivable, partially offset by proceeds from principal repayments on securities of $98.5 million, and repayments on loans receivable.

    Debt securities available for sale increased $31.0 million, or 3.0%, to $1.1 billion at June 30, 2025 from $1.0 billion at December 31, 2024. The increase was attributable to purchases of securities of $126.0 million, consisting primarily of U.S. government obligations and mortgage-backed securities, and a decrease in the gross unrealized loss on securities of $22.1 million, partially offset by maturities on securities of $28.5 million, repayments on securities of $73.6 million, and the sale of securities of $15.7 million.

    Loans receivable, net, increased $254.1 million, or 3.2%, to $8.1 billion at June 30, 2025 from $7.9 billion at December 31, 2024. Multifamily loans, commercial real estate loans and commercial business loans increased $118.1 million, $177.8 million, and $104.5 million, respectively, partially offset by decreases in one-to-four family real estate loans, construction loans and home equity loans and advances of $81.6 million, $58.2 million, and $2.6 million, respectively. The increase in commercial business loans was primarily due to the purchase of $130.9 million in equipment finance loans from a third party in May 2025, at a $3.2 million discount, which included $5.1 million of purchased credit deteriorated loans (“PCD”). The principal balance of the PCD loans was charged-off by $3.2 million. The allowance for credit losses for loans increased $4.5 million to $64.5 million at June 30, 2025 from $60.0 million at December 31, 2024, primarily due to an increase in the outstanding balance of loans.

    Total liabilities increased $223.2 million, or 2.4%, to $9.6 billion at June 30, 2025 from $9.4 billion at December 31, 2024. The increase was primarily attributable to an increase in total deposits of $39.3 million, or 0.5%, and an increase in borrowings of $192.0 million, or 17.8%, partially offset by a decrease in other liabilities of $12.2 million. The increase in total deposits consisted of increases in non-interest-bearing demand deposits, money market accounts and certificates of deposit of $1.9 million, $114.0 million, and $80.2 million, respectively, partially offset by decreases in interest-bearing demand deposits and savings and club accounts of $149.0 million and $7.7 million, respectively. The $192.0 million increase in borrowings was driven by a net increase in short-term borrowings of $122.0 million, coupled with new long-term borrowings of $130.0 million, partially offset by repayments of $60.0 million in maturing long-term borrowings. Proceeds from borrowings were utilized to fund the purchase of $130.9 million in equipment finance loans from a third party in May 2025.

    Total stockholders’ equity increased $40.3 million, or 3.7%, with a balance of $1.1 billion at both June 30, 2025 and December 31, 2024. The increase in total stockholders’ equity was primarily attributable to net income of $21.2 million, and an increase of $15.3 million in other comprehensive income, which includes changes in unrealized losses on debt securities available for sale and unrealized gains on swap contracts, net of taxes, included in other comprehensive income.

    Asset Quality

    The Company’s non-performing loans at June 30, 2025 totaled $39.5 million, or 0.49% of total gross loans, as compared to $21.7 million, or 0.28% of total gross loans, at December 31, 2024. The $17.8 million increase in non-performing loans was primarily attributable to a $5.9 million construction loan designated as non-performing during the 2025 period, an increase in non-performing one-to-four family real estate loans of $2.6 million, an increase in non-performing commercial real estate loans of $7.5 million, and an increase in non-performing commercial business loans of $1.3 million. The $5.9 million non-performing construction loan represents the construction of a mixed use five-story building with both commercial space and apartments. The increase in non-performing one-to-four family real estate loans was due to an increase in the number of loans from 32 non-performing loans at December 31, 2024 to 43 loans at June 30, 2025. The increase in non-performing commercial real estate loans was due to an increase in the number of loans from four non-performing loans at December 31, 2024 to 14 loans at June 30, 2025. The increase in non-performing commercial business loans was due to an increase in the number of loans from 11 non-performing loans at December 31, 2024 to 16 loans at June 30, 2025. Non-performing assets as a percentage of total assets totaled 0.37% at June 30, 2025, as compared to 0.22% at December 31, 2024.

    For the quarter ended June 30, 2025, net charge-offs totaled approximately $3.2 million, as compared to $533,000 in net charge-offs recorded for the quarter ended June 30, 2024. For the six months ended June 30, 2025, net charge-offs totaled $4.1 million as compared to $5.5 million in net charge-offs recorded for the six months ended June 30, 2024. Charge-offs for the three and six months ended June 30, 2025 included $3.2 million in charge-offs related to PCD loans included in the equipment finance loan purchase noted above.

    The Company’s allowance for credit losses on loans was $64.5 million, or 0.79% of total gross loans, at June 30, 2025, compared to $60.0 million, or 0.76% of total gross loans, at December 31, 2024. The increase in the allowance for credit losses for loans was primarily due to an increase in the outstanding balance of loans.

    About Columbia Financial, Inc.

    The consolidated financial results include the accounts of Columbia Financial, Inc., its wholly-owned subsidiary Columbia Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. Columbia Financial, Inc. is a Delaware corporation organized as Columbia Bank’s mid-tier stock holding company. Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC. Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey that operates 69 full-service banking offices and offers traditional financial services to consumers and businesses in its market area.

    Forward Looking Statements

    Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “projects,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates, higher inflation and their impact on national and local economic conditions; changes in monetary and fiscal policies of the U.S. Treasury, the Board of Governors of the Federal Reserve System and other governmental entities; the impact of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; the impact of legal, judicial and regulatory proceedings or investigations, competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect a borrowers’ ability to service and repay the Company’s loans; the effect of acts of terrorism, war or pandemics, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; changes in the value of securities in the Company’s portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and securities; legislative changes and changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s consolidated financial statements will become impaired; cyber-attacks, computer viruses and other technological risks that may breach the security of our systems and allow unauthorized access to confidential information; the inability of third party service providers to perform; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits and effectively manage liquidity; risks related to the implementation of acquisitions, dispositions, and restructurings; the successful implementation of our December 2024 balance sheet repositioning transaction; the risk that the Company may not be successful in the implementation of its business strategy, or its integration of acquired financial institutions and businesses, and changes in assumptions used in making such forward-looking statements which are subject to numerous risks and uncertainties, including but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K and those set forth in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

    Non-GAAP Financial Measures

    Reported amounts are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis and excludes material non-routine operating items which affect the GAAP reporting of results of operations. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods presented. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

    The Company also provides measurements and ratios based on tangible stockholders’ equity. These measures are commonly utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.

    A reconciliation of GAAP to non-GAAP financial measures are included at the end of this press release. See “Reconciliation of GAAP to Non-GAAP Financial Measures”.

           
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Consolidated Statements of Financial Condition
    (In thousands)
           
      June 30,   December 31,
      2025   2024
    Assets (Unaudited)    
    Cash and due from banks $ 248,113     $ 289,113  
    Short-term investments   111       110  
    Total cash and cash equivalents   248,224       289,223  
           
    Debt securities available for sale, at fair value   1,056,950       1,025,946  
    Debt securities held to maturity, at amortized cost (fair value of $368,232, and $350,153 at June 30, 2025 and December 31, 2024, respectively)   402,159       392,840  
    Equity securities, at fair value   7,253       6,673  
    Federal Home Loan Bank stock   68,663       60,387  
           
    Loans receivable   8,175,499       7,916,928  
    Less: allowance for credit losses   64,467       59,958  
    Loans receivable, net   8,111,032       7,856,970  
           
    Accrued interest receivable   41,161       40,383  
    Office properties and equipment, net   82,176       81,772  
    Bank-owned life insurance   278,756       274,908  
    Goodwill and intangible assets   120,003       121,008  
    Other real estate owned   —       1,334  
    Other assets   322,651       324,049  
    Total assets $ 10,739,028     $ 10,475,493  
           
    Liabilities and Stockholders’ Equity      
    Liabilities:      
    Deposits $ 8,135,483     $ 8,096,149  
    Borrowings   1,272,578       1,080,600  
    Advance payments by borrowers for taxes and insurance   49,525       45,453  
    Accrued expenses and other liabilities   160,734       172,915  
    Total liabilities   9,618,320       9,395,117  
           
    Stockholders’ equity:      
    Total stockholders’ equity   1,120,708       1,080,376  
    Total liabilities and stockholders’ equity $ 10,739,028     $ 10,475,493  
           
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Consolidated Statements of Income
    (In thousands, except per share data)
           
      Three Months Ended
    June 30,    		   Six Months Ended
    June 30,
      2025   2024   2025   2024
    Interest income: (Unaudited)   (Unaudited)
    Loans receivable $ 99,646     $ 95,252     $ 194,756     $ 188,201  
    Debt securities available for sale and equity securities   10,301       9,241       20,043       17,026  
    Debt securities held to maturity   2,922       2,502       5,733       4,871  
    Federal funds and interest-earning deposits   2,443       4,459       5,301       8,022  
    Federal Home Loan Bank stock dividends   1,179       1,832       2,821       3,793  
    Total interest income   116,491       113,286       228,654       221,913  
    Interest expense:              
    Deposits   49,344       49,826       99,489       98,244  
    Borrowings   13,444       19,380       25,137       37,389  
    Total interest expense   62,788       69,206       124,626       135,633  
                   
    Net interest income   53,703       44,080       104,028       86,280  
                   
    Provision for credit losses   2,468       2,194       5,401       7,472  
                   
    Net interest income after provision for credit losses   51,235       41,886       98,627       78,808  
                   
    Non-interest income:              
    Demand deposit account fees   2,015       1,590       3,903       3,003  
    Bank-owned life insurance   1,990       1,804       3,849       3,584  
    Title insurance fees   861       744       1,507       1,247  
    Loan fees and service charges   1,744       1,378       2,800       2,339  
    Gain (loss) on securities transactions   336       —       336       (1,256 )
    Change in fair value of equity securities   272       101       580       452  
    (Loss) gain on sale of loans   (15 )     181       500       366  
    Gain on sale of other real estate owned   281       —       281       —  
    Other non-interest income   2,689       3,382       4,888       6,897  
    Total non-interest income   10,173       9,180       18,644       16,632  
                   
    Non-interest expense:              
    Compensation and employee benefits   28,933       27,659       57,516       55,172  
    Occupancy   5,968       6,054       12,153       12,027  
    Federal deposit insurance premiums   1,739       1,879       3,619       4,234  
    Advertising   563       661       1,094       1,287  
    Professional fees   3,519       4,509       6,034       9,143  
    Data processing and software expenses   4,103       3,914       8,164       7,881  
    Merger-related expenses   —       692       —       714  
    Other non-interest expense, net   81       879       171       1,447  
    Total non-interest expense   44,906       46,247       88,751       91,905  
                   
    Income before income tax expense   16,502       4,819       28,520       3,535  
                   
    Income tax expense   4,197       279       7,315       150  
                   
    Net income $ 12,305     $ 4,540     $ 21,205     $ 3,385  
                   
    Earnings per share-basic $ 0.12     $ 0.04     $ 0.21     $ 0.03  
    Earnings per share-diluted $ 0.12     $ 0.04     $ 0.21     $ 0.03  
    Weighted average shares outstanding-basic   101,985,784       101,651,511       101,898,636       101,699,126  
    Weighted average shares outstanding-diluted   101,985,784       101,651,511       101,898,636       101,804,386  
                                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Average Balances/Yields
       
      For the Three Months Ended June 30,
      2025   2024
      Average
    Balance    		   Interest
    and
    Dividends    		   Yield / Cost   Average
    Balance    		   Interest
    and
    Dividends    		   Yield / Cost
      (Dollars in thousands)
    Interest-earnings assets:                      
    Loans $ 8,059,332     $ 99,646       4.96 %   $ 7,774,052     $ 95,252       4.93 %
    Securities   1,493,913       13,223       3.55 %     1,633,801       11,743       2.89 %
    Other interest-earning assets   281,611       3,622       5.16 %     401,633       6,291       6.30 %
    Total interest-earning assets   9,834,856       116,491       4.75 %     9,809,486       113,286       4.64 %
    Non-interest-earning assets   860,948               871,525          
    Total assets $ 10,695,804             $ 10,681,011          
                           
    Interest-bearing liabilities:                      
    Interest-bearing demand $ 1,938,459     $ 10,898       2.25 %   $ 1,948,389     $ 13,708       2.83 %
    Money market accounts   1,332,835       9,424       2.84 %     1,220,774       8,323       2.74 %
    Savings and club deposits   645,167       1,114       0.69 %     674,793       1,370       0.82 %
    Certificates of deposit   2,788,547       27,908       4.01 %     2,545,967       26,425       4.17 %
    Total interest-bearing deposits   6,705,008       49,344       2.95 %     6,389,923       49,826       3.14 %
    FHLB advances   1,218,442       13,303       4.38 %     1,576,514       19,219       4.90 %
    Junior subordinated debentures   7,045       141       8.03 %     7,023       161       9.22 %
    Total borrowings   1,225,487       13,444       4.40 %     1,583,537       19,380       4.92 %
    Total interest-bearing liabilities   7,930,495     $ 62,788       3.18 %     7,973,460     $ 69,206       3.49 %
                           
    Non-interest-bearing liabilities:                      
    Non-interest-bearing deposits   1,443,627               1,416,047          
    Other non-interest-bearing liabilities   215,390               260,107          
    Total liabilities   9,589,512               9,649,614          
    Total stockholders’ equity   1,106,292               1,031,397          
    Total liabilities and stockholders’ equity $ 10,695,804             $ 10,681,011          
                           
    Net interest income     $ 53,703             $ 44,080      
    Interest rate spread           1.57 %             1.15 %
    Net interest-earning assets $ 1,904,361             $ 1,836,026          
    Net interest margin           2.19 %             1.81 %
    Ratio of interest-earning assets to interest-bearing liabilities   124.01 %             123.03 %        
                                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Average Balances/Yields
       
      For the Six Months Ended June 30,
      2025   2024
      Average
    Balance    		   Interest
    and
    Dividends    		   Yield / Cost   Average
    Balance    		   Interest
    and
    Dividends    		   Yield / Cost
      (Dollars in thousands)
    Interest-earnings assets:                      
    Loans $ 7,977,402     $ 194,756       4.92 %   $ 7,788,459     $ 188,201       4.86 %
    Securities   1,485,771       25,776       3.50 %     1,588,767       21,897       2.77 %
    Other interest-earning assets   299,424       8,122       5.47 %     383,989       11,815       6.19 %
    Total interest-earning assets   9,762,597       228,654       4.72 %     9,761,215       221,913       4.57 %
    Non-interest-earning assets   866,499               861,632          
    Total assets $ 10,629,096             $ 10,622,847          
                           
    Interest-bearing liabilities:                      
    Interest-bearing demand $ 1,999,157     $ 22,438       2.26 %   $ 1,973,569     $ 27,092       2.76 %
    Money market accounts   1,307,676       18,662       2.88 %     1,227,857       17,093       2.80 %
    Savings and club deposits   647,201       2,221       0.69 %     681,664       2,607       0.77 %
    Certificates of deposit   2,772,808       56,168       4.08 %     2,531,145       51,452       4.09 %
    Total interest-bearing deposits   6,726,842       99,489       2.98 %     6,414,235       98,244       3.08 %
    FHLB advances   1,140,113       24,857       4.40 %     1,511,830       37,067       4.93 %
    Junior subordinated debentures   7,041       280       8.02 %     7,020       322       9.22 %
    Total borrowings   1,147,154       25,137       4.42 %     1,518,850       37,389       4.95 %
    Total interest-bearing liabilities   7,873,996     $ 124,626       3.19 %     7,933,085     $ 135,633       3.44 %
                           
    Non-interest-bearing liabilities:                      
    Non-interest-bearing deposits   1,438,262               1,404,161          
    Other non-interest-bearing liabilities   218,314               248,514          
    Total liabilities   9,530,572               9,585,760          
    Total stockholders’ equity   1,098,524               1,037,087          
    Total liabilities and stockholders’ equity $ 10,629,096             $ 10,622,847          
                           
    Net interest income     $ 104,028             $ 86,280      
    Interest rate spread           1.53 %             1.13 %
    Net interest-earning assets $ 1,888,601             $ 1,828,130          
    Net interest margin           2.15 %             1.78 %
    Ratio of interest-earning assets to interest-bearing liabilities   123.99 %             123.04 %        
                                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Components of Net Interest Rate Spread and Margin
       
      Average Yields/Costs by Quarter
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024
    Yield on interest-earning assets:                  
    Loans   4.96 %     4.89 %     4.88 %     5.00 %     4.93 %
    Securities   3.55       3.45       2.99       2.90       2.89  
    Other interest-earning assets   5.16       5.75       6.00       6.72       6.30  
    Total interest-earning assets   4.75 %     4.69 %     4.61 %     4.70 %     4.64 %
                       
    Cost of interest-bearing liabilities:                  
    Total interest-bearing deposits   2.95 %     3.01 %     3.13 %     3.21 %     3.14 %
    Total borrowings   4.40       4.44       4.65       4.87       4.92  
    Total interest-bearing liabilities   3.18 %     3.21 %     3.38 %     3.52 %     3.49 %
                       
    Interest rate spread   1.57 %     1.48 %     1.23 %     1.18 %     1.15 %
    Net interest margin   2.19 %     2.11 %     1.88 %     1.84 %     1.81 %
                       
    Ratio of interest-earning assets to interest-bearing liabilities   124.01 %     123.96 %     124.02 %     123.06 %     123.03 %
                                           
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Selected Financial Highlights
       
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024
    SELECTED FINANCIAL RATIOS (1):                  
    Return on average assets   0.46 %     0.34 %   (0.79 )%     0.23 %     0.17 %
    Core return on average assets   0.47 %     0.35 %     0.42 %     0.23 %     0.20 %
    Return on average equity   4.46 %     3.31 %   (7.86 )%     2.32 %     1.77 %
    Core return on average equity   4.58 %     3.37 %     4.09 %     2.29 %     2.06 %
    Core return on average tangible equity   5.14 %     3.78 %     4.74 %     2.58 %     2.34 %
    Interest rate spread   1.57 %     1.48 %     1.23 %     1.18 %     1.15 %
    Net interest margin   2.19 %     2.11 %     1.88 %     1.84 %     1.81 %
    Non-interest income to average assets   0.38 %     0.33 %   (0.88 )%     0.33 %     0.35 %
    Non-interest expense to average assets   1.68 %     1.68 %     1.73 %     1.60 %     1.74 %
    Efficiency ratio   70.30 %     74.57 %     205.17 %     78.95 %     86.83 %
    Core efficiency ratio   69.41 %     74.20 %     73.68 %     79.14 %     85.34 %
    Average interest-earning assets to average interest-bearing liabilities   124.01 %     123.96 %     124.02 %     123.06 %     123.03 %
    Net charge-offs to average outstanding loans (2)   0.04 %     0.04 %     0.07 %     0.14 %     0.03 %
                       
    (1) Ratios are annualized when appropriate.
    (2) The June 30, 2025 ratio includes $3.2 million of non-annualized PCD charge-offs related to the purchased commercial equipment finance loans.
     
    ASSET QUALITY DATA:  
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024
      (Dollars in thousands)
                       
    Non-accrual loans $ 39,545     $ 24,856     $ 21,701     $ 28,014     $ 25,281  
    90+ and still accruing   —       —       —       —       —  
    Non-performing loans   39,545       24,856       21,701       28,014       25,281  
    Real estate owned   —       1,334       1,334       1,974       1,974  
    Total non-performing assets $ 39,545     $ 26,190     $ 23,035     $ 29,988     $ 27,255  
                       
    Non-performing loans to total gross loans   0.49 %     0.31 %     0.28 %     0.36 %     0.33 %
    Non-performing assets to total assets   0.37 %     0.25 %     0.22 %     0.28 %     0.25 %
    Allowance for credit losses on loans (“ACL”) $ 64,467     $ 62,034     $ 59,958     $ 58,495     $ 57,062  
    ACL to total non-performing loans   163.02 %     249.57 %     276.29 %     208.81 %     225.71 %
    ACL to gross loans   0.79 %     0.78 %     0.76 %     0.75 %     0.73 %
                                           
    LOAN DATA:  
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024
      (In thousands)
    Real estate loans:          
    One-to-four family $ 2,629,372     $ 2,676,566     $ 2,710,937     $ 2,737,190     $ 2,764,177  
    Multifamily   1,578,733       1,567,862       1,460,641       1,399,000       1,409,316  
    Commercial real estate   2,517,693       2,429,429       2,339,883       2,312,759       2,316,252  
    Construction   415,403       437,081       473,573       510,439       462,880  
    Commercial business loans   726,526       614,049       622,000       586,447       554,768  
    Consumer loans:                  
    Home equity loans and advances   256,384       253,439       259,009       261,041       260,427  
    Other consumer loans   2,602       2,547       3,404       2,877       2,689  
    Total gross loans   8,126,713       7,980,973       7,869,447       7,809,753       7,770,509  
    Purchased credit deteriorated loans   11,998       10,395       11,686       11,795       12,150  
    Net deferred loan costs, fees and purchased premiums and discounts   36,788       35,940       35,795       35,642       36,352  
    Allowance for credit losses   (64,467 )     (62,034 )     (59,958 )     (58,495 )     (57,062 )
    Loans receivable, net $ 8,111,032     $ 7,965,274     $ 7,856,970     $ 7,798,695     $ 7,761,949  
                                           
      At June 30, 2025
      (Dollars in thousands)
      Balance   % of Gross Loans   Weighted Average
    Loan to Value Ratio    		   Weighted
    Average
    Debt Service
    Coverage
    Multifamily Real Estate $ 1,578,733       19.8 %     59.0 %     1.86 x
                       
    Owner Occupied Commercial Real Estate $ 686,005       8.6 %     53.1 %     2.23 x
                       
    Investor Owned Commercial Real Estate:                  
    Retail / Shopping centers $ 544,476       6.8 %     54.2 %     1.45 x
    Mixed Use   209,619       2.6       58.5       2.52  
    Industrial / Warehouse   435,261       5.5       54.4       1.60  
    Non-Medical Office   167,986       2.1       51.6       1.69  
    Medical Office   98,801       1.2       61.0       1.49  
    Single Purpose   43,332       0.5       60.7       1.44  
    Other   332,213       4.2       50.4       1.85  
    Total $ 1,831,688       23.0 %     54.3 %     1.70 x
                       
    Total Multifamily and Commercial Real Estate Loans $ 4,096,426       51.3 %     55.9 %     1.85  
                                   
    DEPOSIT DATA:  
      June 30, 2025   March 31, 2025   December 31, 2024
      Balance   Weighted
    Average Rate    		   Balance   Weighted
    Average Rate    		   Balance   Weighted
    Average Rate
      (Dollars in thousands)
           
    Non-interest-bearing demand $ 1,439,951       — %   $ 1,490,243       — %   $ 1,438,030       — %
    Interest-bearing demand   1,872,265       2.03       1,935,384       2.08       2,021,312       2.19  
    Money market accounts   1,355,682       2.79       1,333,668       2.84       1,241,691       2.82  
    Savings and club deposits   644,761       0.70       651,713       0.70       652,501       0.75  
    Certificates of deposit   2,822,824       3.96       2,783,927       4.08       2,742,615       4.24  
    Total deposits $ 8,135,483       2.36 %   $ 8,194,935       2.40 %   $ 8,096,149       2.47 %
                                                   
    CAPITAL RATIOS:      
      June 30,   December 31,
      2025 (1)   2024
    Company:      
    Total capital (to risk-weighted assets)   14.18 %     14.20 %
    Tier 1 capital (to risk-weighted assets)   13.35 %     13.40 %
    Common equity tier 1 capital (to risk-weighted assets)   13.27 %     13.31 %
    Tier 1 capital (to adjusted total assets)   10.37 %     10.02 %
           
    Columbia Bank:      
    Total capital (to risk-weighted assets)   14.40 %     14.41 %
    Tier 1 capital (to risk-weighted assets)   13.53 %     13.56 %
    Common equity tier 1 capital (to risk-weighted assets)   13.53 %     13.56 %
    Tier 1 capital (to adjusted total assets)   9.95 %     9.64 %
           
    (1) Estimated ratios at June 30, 2025      
           
    Reconciliation of GAAP to Non-GAAP Financial Measures
           
    Book and Tangible Book Value per Share
      June 30,   December 31,
      2025   2024
      (Dollars in thousands)
       
    Total stockholders’ equity $ 1,120,708     $ 1,080,376  
    Less: goodwill   (110,715 )     (110,715 )
    Less: core deposit intangible   (7,933 )     (8,964 )
    Total tangible stockholders’ equity $ 1,002,060     $ 960,697  
           
    Shares outstanding   104,927,137       104,759,185  
           
    Book value per share $ 10.68     $ 10.31  
    Tangible book value per share $ 9.55     $ 9.17  
                   
    Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
                   
    Reconciliation of Core Net Income              
      Three Months Ended June 30,   Six Months Ended June 30,
      2025   2024   2025   2024
      (In thousands)
                   
    Net income $ 12,305     $ 4,540     $ 21,205     $ 3,385  
    Less/add: (gain) loss on securities transactions, net of tax   (251 )     —       (251 )     1,130  
    Add: FDIC special assessment, net of tax   —       97       —       490  
    Add: severance expense, net of tax   354       —       517       67  
    Add: merger-related expenses, net of tax   —       652       —       672  
    Add: litigation expenses, net of tax   242       —       242       —  
    Core net income $ 12,650     $ 5,289     $ 21,713     $ 5,744  
                                   
    Return on Average Assets              
      Three Months Ended June 30,   Six Months Ended June 30,
      2025   2024   2025   2024
      (Dollars in thousands)
                   
    Net income $ 12,305     $ 4,540     $ 21,205     $ 3,385  
                   
    Average assets $ 10,695,804     $ 10,681,011     $ 10,629,096     $ 10,622,847  
                   
    Return on average assets   0.46 %     0.17 %     0.40 %     0.06 %
                   
    Core net income $ 12,650     $ 5,289     $ 21,713     $ 5,744  
                   
    Core return on average assets   0.47 %     0.20 %     0.41 %     0.11 %
                                   
    Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
                   
    Return on Average Equity              
      Three Months Ended June 30,   Six Months Ended June 30,
      2025   2024   2025   2024
      (Dollars in thousands)
                   
    Total average stockholders’ equity $ 1,106,292     $ 1,031,397     $ 1,098,524     $ 1,037,087  
    Less/add: (gain)loss on securities transactions, net of tax   (251 )     —       (251 )     1,130  
    Add: FDIC special assessment, net of tax   —       97       —       490  
    Add: severance expense, net of tax   354       —       517       67  
    Add: merger-related expenses, net of tax   —       652       —       672  
    Add: litigation expenses, net of tax   242       —       242       —  
    Core average stockholders’ equity $ 1,106,637     $ 1,032,146     $ 1,099,032     $ 1,039,446  
                   
    Return on average equity   4.46 %     1.77 %     3.89 %     0.66 %
                   
    Core return on core average equity   4.58 %     2.06 %     3.98 %     1.11 %
                                   
    Return on Average Tangible Equity        
      Three Months Ended June 30,   Six Months Ended June 30,
      2025   2024   2025   2024
      (Dollars in thousands)
                   
    Total average stockholders’ equity $ 1,106,292     $ 1,031,397     $ 1,098,524     $ 1,037,087  
    Less: average goodwill   (110,715 )     (110,715 )     (110,715 )     (110,715 )
    Less: average core deposit intangible   (8,241 )     (10,381 )     (8,511 )     (10,668 )
    Total average tangible stockholders’ equity $ 987,336     $ 910,301     $ 979,298     $ 915,704  
                   
    Core return on average tangible equity   5.14 %     2.34 %     4.47 %     1.26 %
                                   
    Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
                   
    Efficiency Ratios              
      Three Months Ended June 30,   Six Months Ended June 30,
      2025   2024   2025   2024
      (Dollars in thousands)
                   
    Net interest income $ 53,703     $ 44,080     $ 104,028     $ 86,280  
    Non-interest income   10,173       9,180       18,644       16,632  
    Total income $ 63,876     $ 53,260     $ 122,672     $ 102,912  
                   
    Non-interest expense $ 44,906     $ 46,247     $ 88,751     $ 91,905  
                   
    Efficiency ratio   70.30 %     86.83 %     72.35 %     89.30 %
                   
    Non-interest income $ 10,173     $ 9,180     $ 18,644     $ 16,632  
    Less /add: (gain) loss on securities transactions   (336 )     —       (336 )     1,256  
    Core non-interest income $ 9,837     $ 9,180     $ 18,308     $ 17,888  
                   
    Non-interest expense $ 44,906     $ 46,247     $ 88,751     $ 91,905  
    Less: FDIC special assessment, net   —       (103 )     —       (565 )
    Less: severance expense   (475 )     —       (695 )     (74 )
    Less: merger-related expenses   —       (692 )     —       (714 )
    Less: litigation expenses   (325 )     —       (325 )     —  
    Core non-interest expense $ 44,106     $ 45,452     $ 87,731     $ 90,552  
                   
    Core efficiency ratio   69.41 %     85.34 %     71.71 %     86.93 %
                                   

    Columbia Financial, Inc.
    Investor Relations Department
    (833) 550-0717

    The MIL Network –

    July 31, 2025

  • MIL-OSI: AMSC Reports First Quarter Fiscal Year 2025 Financial Results and Business Outlook

    Source: GlobeNewswire (MIL-OSI)

    First Quarter Financial Highlights:

    • Increased Revenue by 80% Year Over Year to Above $70 Million
    • Reported Net Income of Over $6 Million and Non-GAAP Net Income Exceeding $11 million
    • Achieved Gross Margin Greater than 30%

    Company to host conference call tomorrow, July 31, at 10:00 am ET

    AYER, Mass., July 30, 2025 (GLOBE NEWSWIRE) — AMSC (Nasdaq: AMSC), a leading system provider of megawatt-scale power resiliency solutions that orchestrate the rhythm and harmony of power on the grid™ and protect and expand the capability and resiliency of our Navy’s fleet, today reported financial results for its first quarter of fiscal year 2025 ended June 30, 2025.

    Revenues for the first quarter of fiscal 2025 were $72.4 million compared with $40.3 million for the same period of fiscal 2024. The year-over-year increase was driven by organic growth and the acquisition of NWL, Inc. 

    AMSC’s net income for the first quarter of fiscal 2025 was $6.7 million, or $0.17 per share, compared to a net loss of $2.5 million, or $0.07 per share, for the same period of fiscal 2024. The Company’s non-GAAP net income for the first quarter of fiscal 2025 was $11.6 million, or $0.30 per share, compared with a non-GAAP net income of $3.0 million, or $0.09 per share, in the same period of fiscal 2024. Please refer to the financial table below for a reconciliation of GAAP to non-GAAP results.

    Cash, cash equivalents, and restricted cash on June 30, 2025, totaled $213.4 million, compared with $85.4 million at March 31, 2025.

    “We’ve kicked off fiscal 2025 with accelerated growth, delivering a standout first quarter marked by significant progress and exceptional execution that surpassed our expectations,” said Daniel P. McGahn, Chairman, President and CEO, AMSC. “AMSC grew fiscal first quarter revenue by 80% year-over-year, generated net income of over $6 million marking our fourth consecutive quarter of profitability, and achieved expanded gross margins surpassing 30%. Strength in the semiconductor market—driven by growing demand for applications such as artificial intelligence and data centers—contributed to our momentum, while bookings and backlog remained steady. These results highlight our continued progress in scaling the business, diversifying revenue streams, and driving outstanding financial performance. We approach the remainder of fiscal 2025 with confidence in our team and business.”

    Business Outlook
    For the second quarter ending September 30, 2025, AMSC expects that its revenues will be in the range of $65.0 million to $70.0 million. The Company’s net income for the second quarter of fiscal 2025 is expected to exceed $2.0 million, or $0.05 per share. The Company’s non-GAAP net income (as defined below) is expected to exceed $6.0 million, or $0.14 per share.

    Conference Call Reminder
    In conjunction with this announcement, AMSC management will participate in a conference call with investors beginning at 10:00 a.m. Eastern Time on Thursday, July 31, 2025, to discuss the Company’s financial results and business outlook. Those who wish to listen to the live or archived conference call webcast should visit the “Investors” section of the Company’s website at https://ir.amsc.com. The live call can be accessed by dialing 1-844-481-2802 or 1-412-317-0675 and asking to join the AMSC call. A replay of the call may be accessed 2 hours following the call by dialing 1-877-344-7529 and using conference passcode 4291224.

    About AMSC (Nasdaq: AMSC)
    AMSC generates the ideas, technologies and solutions that meet the world’s demand for smarter, cleaner … better energy™. Through its Gridtec™ Solutions, AMSC provides the engineering planning services and advanced grid systems that optimize network reliability, efficiency and performance.  Through its Marinetec™ Solutions, AMSC provides ship protection systems and is developing propulsion and power management solutions designed to help fleets increase system efficiencies, enhance power quality and boost operational safety. Through its Windtecc™ Solutions, AMSC provides wind turbine electronic controls and systems, designs and engineering services that reduce the cost of wind energy. The Company’s solutions are enhancing the performance and reliability of power networks, increasing the operational safety of navy fleets, and powering gigawatts of renewable energy globally. Founded in 1987, AMSC is headquartered near Boston, Massachusetts with operations in Asia, Australia, Europe and North America. For more information, please visit www.amsc.com.

    AMSC, American Superconductor, D-VAR, D-VAR VVO, Gridtec, Marinetec, Windtec, Neeltran, NEPSI, NWL, Smarter, Cleaner … Better Energy, and Orchestrate the Rhythm and Harmony of Power on the Grid are trademarks or registered trademarks of American Superconductor Corporation. All other brand names, product names, trademarks or service marks belong to their respective holders.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Any statements in this release regarding execution of our goals and strategies, including scaling our business and diversifying revenue streams; growing demand for applications such as artificial intelligence and data centers; backlog; expectations regarding the second quarter of fiscal 2025; our expected GAAP and non-GAAP financial results for the quarter ending September 30, 2025; and other statements containing the words “believes,” “anticipates,” “plans,” “expects,” “will” and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements represent management’s current expectations and are inherently uncertain. There are a number of important factors that could materially impact the value of our common stock or cause actual results to differ materially from those indicated by such forward-looking statements. These important factors include, but are not limited to: We have not been historically profitable, which may recur in the future. Our operating results may fluctuate significantly from quarter to quarter and may fall below expectations in any particular fiscal quarter; While we generated positive operating cash flow in fiscal 2024 and the prior year, we have a history of negative operating cash flows, and we may require additional financing in the future, which may not be available to us; Our technology and products could infringe intellectual property rights of others, which may require costly litigation and, if we are not successful, could cause us to pay substantial damages and disrupt our business; Changes in exchange rates could adversely affect our results of operations; If we fail to maintain proper and effective internal control over financial reporting, our ability to produce accurate and timely financial statements could be impaired and may lead investors and other users to lose confidence in our financial data; We may be required to issue performance bonds, which restricts our ability to access any cash used as collateral for the bonds; We may not realize all of the sales expected from our backlog of orders and contracts; If we fail to implement our business strategy successfully, our financial performance could be harmed; We rely upon third-party suppliers for the components and subassemblies of many of our Grid and Wind products, making us vulnerable to supply shortages and price fluctuations, which could harm our business; Our contracts with the U.S. and Canadian governments are subject to audit, modification or termination by such governments and include certain other provisions in favor of the governments. The continued funding of such contracts may remain subject to annual legislative appropriation, which, if not approved, could reduce our revenue and lower or eliminate our profit; Changes in U.S. government defense spending could negatively impact our financial position, results of operations, liquidity and overall business; Our business and operations may be materially adversely impacted in the event of a failure or security breach of our or any critical third parties’ IT Systems or Confidential Information; Failure to comply with evolving data privacy and data protection laws and regulations or to otherwise protect personal data, may adversely impact our business and financial results; Our success is dependent upon attracting and retaining qualified personnel and our inability to do so could significantly damage our business and prospects; We may acquire additional complementary businesses or technologies, which may require us to incur substantial costs for which we may never realize the anticipated benefits; A significant portion of our Wind segment revenues are derived from a single customer. If this customer’s business is negatively affected, it could adversely impact our business; Our success in addressing the wind energy market is dependent on the manufacturers that license our designs; Many of our revenue opportunities are dependent upon subcontractors and other business collaborators; Problems with product quality or product performance may cause us to incur warranty expenses and may damage our market reputation and prevent us from achieving increased sales and market share; Many of our customers outside of the United States may be either directly or indirectly related to governmental entities, and we could be adversely affected by violations of the United States Foreign Corrupt Practices Act and similar worldwide anti-bribery laws outside the United States; We have had limited success marketing and selling our superconductor products and system-level solutions, and our failure to more broadly market and sell our products and solutions could lower our revenue and cash flow; We or third parties on whom we depend may be adversely affected by natural disasters, including events resulting from climate change, and our business continuity and disaster recovery plans may not adequately protect us or our value chain from such events; Uncertainty surrounding our prospects and financial condition may have an adverse effect on our customer and supplier relationships; Pandemics, epidemics, or other public health crises may adversely impact our business, financial condition and results of operations; Adverse changes in domestic and global economic conditions could adversely affect our operating results; Our international operations are subject to risks that we do not face in the United States, which could have an adverse effect on our operating results; Our products face competition, which could limit our ability to acquire or retain customers; We have operations in, and depend on sales in, emerging markets, including India, and global conditions could negatively affect our operating results or limit our ability to expand our operations outside of these markets. Changes in India’s political, social, regulatory and economic environment may affect our financial performance; Industry consolidation could result in more powerful competitors and fewer customers; Our success could depend upon the commercial adoption of the REG system, which is currently limited, and a widespread commercial market for our REG products may not develop; Increasing focus and scrutiny on environmental sustainability and social initiatives could adversely impact our business and financial results; Growth of the wind energy market depends largely on the availability and size of government subsidies, economic incentives and legislative programs designed to support the growth of wind energy; Lower prices for other energy sources may reduce the demand for wind energy development, which could have a material adverse effect on our ability to grow our Wind business; We may be unable to adequately prevent disclosure of trade secrets and other proprietary information; Our patents may not provide meaningful or long-term protection for our technology, which could result in us losing some or all of our market position; Third parties have or may acquire patents that cover the materials, processes and technologies we use or may use in the future to manufacture our Amperium products, and our success depends on our ability to license such patents or other proprietary rights; There are a number of technological challenges that must be successfully addressed before our superconductor products can gain widespread commercial acceptance, and our inability to address such technological challenges could adversely affect our ability to acquire customers for our products; Our common stock has experienced, and may continue to experience, market price and volume fluctuations, which may prevent our stockholders from selling our common stock at a profit and could lead to costly litigation against us that could divert our management’s attention; Unfavorable results of legal proceedings could have a material adverse effect on our business, operating results and financial condition and the other important factors discussed under the caption “Risk Factors” in Part 1. Item 1A of our Form 10-K for the fiscal year ended March 31, 2025, and our other reports filed with the SEC. These important factors, among others, could cause actual results to differ materially from those indicated by forward-looking statements made herein and presented elsewhere by management from time to time. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

         
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
         
      Three Months Ended June 30,  
      2025   2024  
    Revenues            
    Grid $ 60,087   $ 32,336  
    Wind   12,271     7,954  
    Total revenues   72,358     40,290  
                 
    Cost of revenues   47,869     28,065  
                 
    Gross margin   24,489     12,225  
                 
    Operating expenses:            
    Research and development   4,304     2,286  
    Selling, general and administrative   14,204     8,898  
    Amortization of acquisition-related intangibles   337     412  
    Change in fair value of contingent consideration   —     3,920  
    Total operating expenses   18,845     15,516  
                 
    Operating income (loss)   5,644     (3,291 )
                 
    Interest income, net   932     1,120  
    Other income (expense), net   347     (160 )
    Income (loss) before income tax expense   6,923     (2,331 )
                 
    Income tax expense   199     193  
                 
    Net income (loss) $ 6,724   $ (2,524 )
                 
    Net income (loss) per common share            
    Basic $ 0.17   $ (0.07 )
    Diluted $ 0.17   $ (0.07 )
                 
    Weighted average number of common shares outstanding            
    Basic   38,875     35,676  
    Diluted   39,742     35,676  
                 
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands, except per share data)
               
      June 30, 2025     March 31, 2025  
    ASSETS              
    Current assets:              
    Cash and cash equivalents $ 207,890     $ 79,494  
    Accounts receivable, net   54,684       46,186  
    Inventory, net   71,602       71,169  
    Prepaid expenses and other current assets   13,332       8,055  
    Restricted cash   1,349       1,613  
    Total current assets   348,857       206,517  
                   
    Property, plant and equipment, net   38,521       38,572  
    Intangibles, net   5,579       5,916  
    Right-of-use assets   4,041       3,829  
    Goodwill   48,164       48,164  
    Restricted cash   4,180       4,274  
    Deferred tax assets   1,262       1,178  
    Equity-method investments   1,406       1,113  
    Other assets   836       958  
    Total assets $ 452,846     $ 310,521  
                   
    LIABILITIES AND STOCKHOLDERS’ EQUITY              
                   
    Current liabilities:              
    Accounts payable and accrued expenses $ 38,401     $ 32,282  
    Lease liability, current portion   854       685  
    Deferred revenue, current portion   66,055       66,797  
    Total current liabilities   105,310       99,764  
                   
    Deferred revenue, long term portion   9,836       9,336  
    Lease liability, long term portion   2,906       2,684  
    Deferred tax liabilities   1,647       1,595  
    Other liabilities   31       28  
    Total liabilities   119,730       113,407  
                   
    Stockholders’ equity:              
    Common stock, $0.01 par value, 75,000,000 shares authorized; 45,564,273 and 39,887,536 shares issued and 45,160,922 and 39,484,185 shares outstanding at June 30, 2025 and March 31, 2025, respectively   456       399  
    Additional paid-in capital   1,388,948       1,259,540  
    Treasury stock, at cost, 403,351 at June 30, 2025 and March 31, 2025   (3,765 )     (3,765 )
    Accumulated other comprehensive income   1,378       1,565  
    Accumulated deficit   (1,053,901 )     (1,060,625 )
    Total stockholders’ equity   333,116       197,114  
    Total liabilities and stockholders’ equity $ 452,846     $ 310,521  
                   
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
         
      Three Months Ended June 30,  
      2025     2024  
    Cash flows from operating activities:              
                   
    Net income (loss) $ 6,724     $ (2,524 )
    Adjustments to reconcile net income (loss) to net cash provided by operations:              
    Depreciation and amortization   1,229       1,008  
    Stock-based compensation expense   4,526       1,229  
    Provision for excess and obsolete inventory   711       503  
    Amortization of operating lease right-of-use assets   243       192  
    Deferred income taxes   7       (2 )
    Earnings from equity method investments   (293 )     —  
    Change in fair value of contingent consideration   —       3,920  
    Other non-cash items   140       (3 )
    Changes in operating asset and liability accounts:              
    Accounts receivable   (8,512 )     2,786  
    Inventory   (1,046 )     (3,799 )
    Prepaid expenses and other assets   (5,084 )     (3,099 )
    Operating leases   (64 )     (195 )
    Accounts payable and accrued expenses   6,321       (1,734 )
    Deferred revenue   (777 )     5,127  
    Net cash provided by operating activities   4,125       3,409  
                   
    Cash flows from investing activities:              
    Purchases of property, plant and equipment   (814 )     (265 )
    Change in other assets   79       245  
    Net cash used in investing activities   (735 )     (20 )
                   
    Cash flows from financing activities:              
    Repayment of debt   —       (16 )
    Employee taxes paid related to net settlement of equity awards   —       (126 )
    Proceeds from public equity offering, net of offering expenses   124,577       —  
    Net cash provided by (used in) financing activities   124,577       (142 )
                   
    Effect of exchange rate changes on cash   71       (4 )
                   
    Net increase in cash, cash equivalents and restricted cash   128,038       3,243  
    Cash, cash equivalents and restricted cash at beginning of period   85,381       92,280  
    Cash, cash equivalents and restricted cash at end of period $ 213,419     $ 95,523  
                   
    RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME
    (In thousands, except per share data)
         
      Three Months Ended June 30,  
      2025   2024  
    Net income (loss) $ 6,724   $ (2,524 )
    Stock-based compensation   4,526     1,229  
    Amortization of acquisition-related intangibles   337     412  
    Change in fair value of contingent consideration   —     3,920  
    Non-GAAP net income $ 11,587   $ 3,037  
                 
    Non-GAAP net income per share – basic $ 0.30   $ 0.09  
    Non-GAAP net income per share – diluted $ 0.29   $ 0.08  
    Weighted average shares outstanding – basic   38,875     35,676  
    Weighted average shares outstanding – diluted   39,742     37,032  
                 
    Reconciliation of Forecast GAAP Net Income to Non-GAAP Net Income
    (In millions, except per share data)
       
      Three Months Ending
      September 30, 2025
    Net income   $ 2.0
    Stock-based compensation     3.7
    Amortization of acquisition-related intangibles     0.3
    Non-GAAP net income   $ 6.0
    Non-GAAP net income per share   $ 0.14
    Shares outstanding     43.5
           
           

    Note: Non-GAAP net income is defined by the Company as net income before stock-based compensation; amortization of acquisition-related intangibles; change in fair value of contingent consideration, other non-cash or unusual charges, and the tax effect of adjustments calculated at the relevant rate for our non-GAAP metric. The Company believes non-GAAP net income and non-GAAP net income per share assist management and investors in comparing the Company’s performance across reporting periods on a consistent basis by excluding these non-cash, non-recurring or other charges that it does not believe are indicative of its core operating performance. Actual GAAP and non-GAAP net income for the fiscal quarter ending September 30, 2025, including the above adjustments, may differ materially from those forecasted in the table above. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The non-GAAP measure included in this release, however, should be considered in addition to, and not as a substitute for or superior to, net income or other measures of financial performance prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP net income is set forth in the table above.

    Contacts:

    AMSC Director, Communications:
    Nicol Golez
    978-399-8344
    Nicol.Golez@amsc.com

    Investor Relations:
    Carolyn Capaccio
    Phone: (212) 838-3777
    amscIR@allianceadvisors.com

    Public Relations:
    Joe Luongo
    (914) 906-5903
    jluongo@rooneypartners.com

    The MIL Network –

    July 31, 2025

  • MIL-OSI: SPS Commerce Reports Second Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Company delivers 98th consecutive quarter of topline growth

    Second quarter 2025 revenue grew 22% and recurring revenue grew 24% from the second quarter of 2024

    MINNEAPOLIS, July 30, 2025 (GLOBE NEWSWIRE) — SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail supply chain cloud services, today announced financial results for the second quarter ended June 30, 2025.

    Financial Highlights

    Second Quarter 2025 Financial Highlights

    • Revenue was $187.4 million in the second quarter of 2025, compared to $153.6 million in the second quarter of 2024, reflecting 22% growth.
    • Recurring revenue grew 24% from the second quarter of 2024.
    • Net income was $19.7 million or $0.52 per diluted share, compared to net income of $18.0 million or $0.48 per diluted share in the second quarter of 2024.
    • Non-GAAP income per diluted share was $1.00, compared to non-GAAP income per diluted share of $0.80 in the second quarter of 2024.
    • Adjusted EBITDA for the second quarter of 2025 increased 27% to $56.1 million compared to the second quarter of 2024.
    • Share repurchases in the second quarter of 2025 totaled $20.0 million.

    “SPS Commerce is the only full-service EDI solution on the market uniquely positioned to help suppliers effortlessly maintain EDI compliance with retailers’ frequently changing requirements,” said Chad Collins, CEO of SPS Commerce. “Our product portfolio enables a stronger collaboration between trading partners, unlocking greater efficiency, cost savings, and shared success. These are dynamics that we believe position SPS for long-term growth.”

    “We delivered strong second-quarter performance, and we remain confident in our full-year 2025 outlook,” said Kim Nelson, CFO of SPS Commerce. “In the long term, we are well positioned to capitalize on the growth opportunities across our large addressable market, while we continue to demonstrate strong operating leverage and the resilience of our business model.”

    Guidance

    Third Quarter 2025 Guidance

    • Revenue is expected to be in the range of $191.7 million to $193.2 million, representing 17% to 18% year-over-year growth.
    • Net income per diluted share is expected to be in the range of $0.50 to $0.54, with fully diluted weighted average shares outstanding of 38.5 million shares.
    • Non-GAAP income per diluted share is expected to be in the range of $0.96 to $1.00.
    • Adjusted EBITDA is expected to be in the range of $57.9 million to $59.9 million.
    • Non-cash, share-based compensation expense is expected to be $16.0 million, depreciation expense is expected to be $5.6 million, and amortization expense is expected to be $9.5 million.

    Fiscal Year 2025 Guidance

    • Revenue is expected to be in the range of $759.0 million to $763.0 million, representing 19% to 20% growth over 2024.
    • Net income per diluted share is expected to be in the range of $2.17 to $2.22, with fully diluted weighted average shares outstanding of 38.3 million shares.
    • Non-GAAP income per diluted share is expected to be in the range of $3.99 to $4.04.
    • Adjusted EBITDA is expected to be in the range of $230.7 million to $233.7 million, representing 24% to 25% growth over 2024.
    • Non-cash, share-based compensation expense is expected to be $60.9 million, depreciation expense is expected to be $21.8 million, and amortization expense is expected to be $37.1 million.

    The forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, and actual results may vary materially. The Company does not present a reconciliation of the forward-looking non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP income per share, to the most directly comparable GAAP financial measures because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized.

    Quarterly Conference Call

    To access the call, please dial 1-833-816-1382, or outside the U.S. 1-412-317-0475 at least 15 minutes prior to the 3:30 p.m. CT start time. Please ask to join the SPS Commerce Q2 2025 conference call. A live webcast of the call will also be available at http://investors.spscommerce.com under the Events and Presentations menu. The replay will also be available on our website at http://investors.spscommerce.com.

    About SPS Commerce

    SPS Commerce is the world’s leading retail network, connecting trading partners around the globe to optimize supply chain operations for all retail partners. We support data-driven partnerships with innovative cloud technology, customer-obsessed service, and accessible experts so our customers can focus on what they do best. Over 50,000 recurring revenue customers in retail, grocery, distribution, supply, manufacturing, and logistics are using SPS as their retail network. SPS has achieved 98 consecutive quarters of revenue growth and is headquartered in Minneapolis. For additional information, contact SPS at 866-245-8100 or visit www.spscommerce.com.

    SPS COMMERCE, SPS, SPS logo and INFINITE RETAIL POWER are marks of SPS Commerce, Inc. and registered in the U.S. Patent and Trademark Office, along with other SPS marks. Such marks may also be registered or otherwise protected in other countries. 

    SPS-F

    Use of Non-GAAP Financial Measures

    To supplement our condensed consolidated financial statements, we provide investors with Adjusted EBITDA, Adjusted EBITDA Margin, and non-GAAP income per share, all of which are non-GAAP financial measures. We believe that these non-GAAP financial measures provide useful information to our management, Board of Directors, and investors regarding certain financial and business trends relating to our financial condition and results of operations.

    Our management uses these non-GAAP financial measures to compare our performance to that of prior periods for trend analyses and planning purposes. Adjusted EBITDA is also used for purposes of determining executive and senior management incentive compensation. We believe these non-GAAP financial measures are useful to an investor as they are widely used in evaluating operating performance. Adjusted EBITDA and Adjusted EBITDA Margin are used to measure operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, and to present a meaningful measure of corporate performance exclusive of capital structure and the method by which assets were acquired.

    These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in our condensed consolidated financial statements and are subject to inherent limitations. Investors should review the reconciliations of non-GAAP financial measures to the comparable GAAP financial measures that are included in this press release.

    Adjusted EBITDA Measures:

    Adjusted EBITDA consists of net income adjusted for income tax expense, depreciation and amortization expense, stock-based compensation expense, realized gain or loss from investments held and foreign currency impact on cash and investments, investment income, and other adjustments as necessary for a fair presentation. Other adjustments for the three months ended June 30, 2025 included the expense impact from disposals of certain capitalized internally developed software and for the six months ended June 30, 2025 included the expense impacts from disposals of certain capitalized internally developed software and one-time acquisition-related insurance costs. Net income is the comparable GAAP measure of financial performance.

    Adjusted EBITDA Margin consists of Adjusted EBITDA divided by revenue. Margin, the comparable GAAP measure of financial performance, consists of net income divided by revenue.

    Non-GAAP Income Per Share Measure:

    Non-GAAP income per share consists of net income adjusted for stock-based compensation expense, amortization expense related to intangible assets, realized gain or loss from investments held and foreign currency impact on cash and investments, other adjustments as necessary for a fair presentation, including for the three months ended June 30, 2025 the expense impact from disposals of certain capitalized internally developed software and for the six months ended June 30, 2025 the expense impacts from disposals of certain capitalized internally developed software and one-time acquisition-related insurance costs, and the corresponding tax impacts of the adjustments to net income, divided by the weighted average number of shares of common and diluted stock outstanding during each period. Net income per share, the comparable GAAP measure of financial performance, consists of net income divided by the weighted average number of shares of common and diluted stock outstanding during each period. To quantify the tax effects, we recalculated income tax expense excluding the direct book and tax effects of the specific items constituting the non-GAAP adjustments. The difference between this recalculated income tax expense and GAAP income tax expense is presented as the income tax effect of the non-GAAP adjustments.

    Forward-Looking Statements

    This press release may contain forward-looking statements, including information about management’s view of SPS Commerce’s future expectations, plans and prospects, including our views regarding future execution within our business, the opportunity we see in the retail supply chain world and our performance for the third quarter and full year of 2025, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of SPS Commerce to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are included in documents SPS Commerce files with the Securities and Exchange Commission, including but not limited to, SPS Commerce’s Annual Report on Form 10-K for the year ended December 31, 2024, as well as subsequent reports filed with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on SPS Commerce’s future results. The forward-looking statements included in this press release are made only as of the date hereof. SPS Commerce cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SPS Commerce expressly disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

    Contact:
    Investor Relations
    The Blueshirt Group
    Irmina Blaszczyk & Lisa Laukkanen
    SPSC@blueshirtgroup.com
    415-217-4962

     
    SPS COMMERCE, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands, except shares)
     
      June 30,
    2025    		   December 31,
    2024
    ASSETS (unaudited)    
    Current assets      
    Cash and cash equivalents $ 107,603     $ 241,017  
    Accounts receivable   72,798       56,214  
    Allowance for credit losses   (5,286 )     (4,179 )
    Accounts receivable, net   67,512       52,035  
    Deferred costs   66,809       65,342  
    Other assets   27,453       23,513  
    Total current assets   269,377       381,907  
    Property and equipment, net   40,150       37,547  
    Operating lease right-of-use assets   7,395       8,192  
    Goodwill   543,514       399,180  
    Intangible assets, net   237,105       181,294  
    Other assets      
    Deferred costs, non-current   21,095       20,572  
    Deferred income tax assets   645       505  
    Other assets, non-current   1,823       2,033  
    Total assets $ 1,121,104     $ 1,031,230  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities      
    Accounts payable $ 11,604     $ 8,577  
    Accrued compensation   38,708       47,160  
    Accrued expenses   12,710       12,108  
    Deferred revenue   79,198       74,256  
    Operating lease liabilities   5,749       4,583  
    Total current liabilities   147,969       146,684  
    Other liabilities      
    Deferred revenue, non-current   5,477       6,189  
    Operating lease liabilities, non-current   5,049       7,885  
    Deferred income tax liabilities   12,533       15,541  
    Other liabilities, non-current   296       241  
    Total liabilities   171,324       176,540  
    Commitments and contingencies      
    Stockholders’ equity      
    Common stock   40       40  
    Treasury stock   (122,096 )     (99,748 )
    Additional paid-in capital   693,113       627,982  
    Retained earnings   378,028       336,099  
    Accumulated other comprehensive gain (loss)   695       (9,683 )
    Total stockholders’ equity   949,780       854,690  
    Total liabilities and stockholders’ equity $ 1,121,104     $ 1,031,230  
     
    SPS COMMERCE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited; in thousands, except per share amounts)
        
      Three Months Ended
    June 30,    		   Six Months Ended
    June 30,
        2025       2024       2025       2024  
    Revenues $ 187,400     $ 153,596     $ 368,949     $ 303,172  
    Cost of revenues   59,826       52,018       116,740       103,505  
    Gross profit   127,574       101,578       252,209       199,667  
    Operating expenses              
    Sales and marketing   43,434       35,691       85,068       72,123  
    Research and development   17,271       14,366       34,710       30,375  
    General and administrative   30,890       23,516       61,908       49,423  
    Amortization of intangible assets   9,509       4,840       18,097       9,178  
    Total operating expenses   101,104       78,413       199,783       161,099  
    Income from operations   26,470       23,165       52,426       38,568  
    Other income, net   773       4,056       2,980       7,188  
    Income before income taxes   27,243       27,221       55,406       45,756  
    Income tax expense   7,510       9,189       13,477       9,721  
    Net income $ 19,733     $ 18,032     $ 41,929     $ 36,035  
                   
    Net income per share              
    Basic $ 0.52     $ 0.49     $ 1.10     $ 0.97  
    Diluted $ 0.52     $ 0.48     $ 1.10     $ 0.96  
                   
    Weighted average common shares used to compute net income per share              
    Basic   37,965       37,078       37,978       37,063  
    Diluted   38,099       37,683       38,132       37,690  
     
    SPS COMMERCE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited; in thousands)
     
      Six Months Ended
    June 30,
        2025       2024  
    Cash flows from operating activities      
    Net income $ 41,929     $ 36,035  
    Reconciliation of net income to net cash provided by operating activities      
    Deferred income taxes   (5,914 )     (8,172 )
    Depreciation and amortization of property and equipment   9,948       9,377  
    Amortization of intangible assets   18,097       9,178  
    Provision for credit losses   4,111       3,646  
    Stock-based compensation   28,865       31,512  
    Other, net   274       (907 )
    Changes in assets and liabilities, net of effects of acquisitions      
    Accounts receivable   (13,713 )     (11,407 )
    Deferred costs   (412 )     (1,996 )
    Other assets and liabilities   (2,258 )     1,899  
    Accounts payable   2,082       (1,450 )
    Accrued compensation   (11,006 )     (10,763 )
    Accrued expenses   (1,833 )     1,489  
    Deferred revenue   3,012       5,965  
    Operating leases   (876 )     (900 )
    Net cash provided by operating activities   72,306       63,506  
    Cash flows from investing activities      
    Purchases of property and equipment   (12,815 )     (8,592 )
    Purchases of investments   —       (78,994 )
    Maturities of investments   —       105,000  
    Acquisition of business, net   (142,628 )     (29,343 )
    Net cash used in investing activities   (155,443 )     (11,929 )
    Cash flows from financing activities      
    Repurchases of common stock   (59,558 )     (37,483 )
    Net proceeds from exercise of options to purchase common stock   2,406       2,314  
    Net proceeds from employee stock purchase plan activity   5,426       5,219  
    Net cash used in financing activities   (51,726 )     (29,950 )
    Effect of foreign currency exchange rate changes   1,449       (476 )
    Net increase (decrease) in cash and cash equivalents   (133,414 )     21,151  
    Cash and cash equivalents at beginning of period   241,017       219,081  
    Cash and cash equivalents at end of period $ 107,603     $ 240,232  
     
    SPS COMMERCE, INC.
    NON-GAAP RECONCILIATIONS
    (Unaudited; in thousands, except Margin, Adjusted EBITDA Margin, and per share amounts)
     
    Adjusted EBITDA
      Three Months Ended
    June 30,    		   Six Months Ended
    June 30,
        2025       2024       2025       2024  
    Net income $ 19,733     $ 18,032     $ 41,929     $ 36,035  
    Income tax expense   7,510       9,189       13,477       9,721  
    Depreciation and amortization of property and equipment   4,991       4,683       9,948       9,377  
    Amortization of intangible assets   9,509       4,840       18,097       9,178  
    Stock-based compensation expense   14,998       11,494       28,865       31,512  
    Realized gain from investments held and foreign currency impact on cash and investments   (107)       (1,255)       (473)       (1,559)  
    Investment income   (688)       (2,794)       (2,537)       (5,673)  
    Other   106       —       1,119       —  
    Adjusted EBITDA $ 56,052     $ 44,189     $ 110,425     $ 88,591  
    Adjusted EBITDA Margin
      Three Months Ended
    June 30,    		   Six Months Ended
    June 30,
        2025       2024       2025       2024  
    Revenue $ 187,400     $ 153,596     $ 368,949     $ 303,172  
                                   
    Net income   19,733       18,032       41,929       36,035  
    Margin   11 %     12 %     11 %     12 %
                                   
    Adjusted EBITDA   56,052       44,189       110,425       88,591  
    Adjusted EBITDA Margin   30 %     29 %     30 %     29 %
    Non-GAAP Income per Share
      Three Months Ended
    June 30,    		   Six Months Ended
    June 30,
        2025       2024       2025       2024  
    Net income $ 19,733     $ 18,032     $ 41,929     $ 36,035  
    Stock-based compensation expense   14,998       11,494       28,865       31,512  
    Amortization of intangible assets   9,509       4,840       18,097       9,178  
    Realized gain from investments held and foreign currency impact on cash and investments   (107 )     (1,255 )     (473 )     (1,559 )
    Other   106       —       1,119       —  
    Income tax effects of adjustments   (6,285 )     (3,066 )     (13,570 )     (12,620 )
    Non-GAAP income $ 37,954     $ 30,045     $ 75,967     $ 62,546  
                                   
    Shares used to compute net income and non-GAAP income per share                              
    Basic   37,965       37,078       37,978       37,063  
    Diluted   38,099       37,683       38,132       37,690  
                                   
    Net income per share, basic $ 0.52     $ 0.49     $ 1.10     $ 0.97  
    Non-GAAP adjustments to net income per share, basic   0.48       0.32       0.90       0.72  
    Non-GAAP income per share, basic $ 1.00     $ 0.81     $ 2.00     $ 1.69  
                                   
    Net income per share, diluted $ 0.52     $ 0.48     $ 1.10     $ 0.96  
    Non-GAAP adjustments to net income per share, diluted   0.48       0.32       0.89       0.70  
    Non-GAAP income per share, diluted $ 1.00     $ 0.80     $ 1.99     $ 1.66  

    The annual per share amounts may not cross-sum due to rounding.

    The MIL Network –

    July 31, 2025

  • MIL-OSI: Tenable Announces Second Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    • Revenue of $247.3 million, up 12% year-over-year.
    • Calculated current billings of $238.6 million, up 8% year-over-year.
    • GAAP operating margin of (3)%; Non-GAAP operating margin of 19%.
    • Net cash provided by operating activities of $42.5 million; Unlevered free cash flow of $44.3 million.
    • Announced a $250 million expansion of our existing stock repurchase program.

    COLUMBIA, Md., July 30, 2025 (GLOBE NEWSWIRE) — Tenable Holdings, Inc. (“Tenable”) (Nasdaq: TENB), the exposure management company, today announced financial results for the quarter ended June 30, 2025.

    “We beat all of our guided metrics during the quarter, delivering 12% revenue growth and 19% operating margin,” said Steve Vintz, Co-CEO of Tenable. “Our outperformance was driven by the adoption of our exposure management platform, as customers are becoming more strategic with their security investments, prioritizing preemptive measures and seeking a unified view of their attack surface to reduce risk.”

    “This quarter showcased the exceptional value Tenable One delivers, as we saw major expansions across industries and secured strong wins against major players,” said Mark Thurmond, Co-CEO of Tenable. “Our leadership in exposure management uniquely positions us to help customers address their complex security challenges.”

    Second Quarter 2025 Financial Highlights

    • Revenue was $247.3 million, a 12% increase year-over-year.
    • Calculated current billings was $238.6 million, an 8% increase year-over-year.
    • GAAP loss from operations was $7.4 million, compared to $8.8 million in the second quarter of 2024.
    • Non-GAAP income from operations was $47.7 million, compared to $42.8 million in the second quarter of 2024.
    • GAAP net loss was $14.7 million, compared to $14.6 million in the second quarter of 2024.
    • GAAP net loss per share was $0.12, consistent with the second quarter of 2024.
    • Non-GAAP net income was $41.4 million, compared to $38.2 million in the second quarter of 2024.
    • Non-GAAP diluted earnings per share was $0.34, compared to $0.31 in the second quarter of 2024.
    • Cash and cash equivalents and short-term investments were $386.5 million at June 30, 2025, compared to $577.2 million at December 31, 2024.
    • Net cash provided by operating activities was $42.5 million, compared to $31.4 million in the second quarter of 2024.
    • Unlevered free cash flow was $44.3 million, compared to $36.5 million in the second quarter of 2024.
    • Repurchased 2.0 million shares of our common stock for $65.0 million.

    Recent Business Highlights

    • Added 367 new enterprise platform customers and 76 net new six-figure customers.
    • Announced a $250 million expansion of our existing stock repurchase program.
    • Completed our acquisition of Apex Security, which is expected to strengthen our industry-leading exposure management platform to help organizations secure both the AI they use and the AI they build.
    • Launched Tenable One connectors and advanced risk dashboards, which are designed to seamlessly combine data from third-party security tools with our native sensor data for a comprehensive and actionable view of organizational risk.
    • Named a “Major Player” in IDC’s inaugural MarketScape report for Cloud-Native Application Protection Platforms (CNAPP).
    • Published the 2025 Cloud Security Risk Report, delivering in-depth, real-world insights into the most pressing security challenges organizations face.
    • Awarded two AI-powered security awards from the 2025 Globee Awards and 2025 Cybersecurity Excellence Awards.

    Financial Outlook

    For the third quarter of 2025, we currently expect:

    • Revenue in the range of $246.0 million to $248.0 million.
    • Non-GAAP income from operations in the range of $52.0 million to $54.0 million.
    • Non-GAAP net income in the range of $44.0 million to $46.0 million, assuming interest expense of $7.2 million, interest income of $3.3 million and a provision for income taxes of $3.4 million.
    • Non-GAAP diluted earnings per share in the range of $0.36 to $0.37.
    • 123.0 million diluted weighted average shares outstanding.

    For the year ending December 31, 2025, we currently expect:

    • Calculated current billings in the range of $1.038 billion to $1.048 billion.
    • Revenue in the range of $981.0 million to $987.0 million.
    • Non-GAAP income from operations in the range of $205.0 million to $215.0 million.
    • Non-GAAP net income in the range of $179.0 million to $189.0 million, assuming interest expense of $28.5 million, interest income of $15.6 million and a provision for income taxes of $12.8 million.
    • Non-GAAP diluted earnings per share in the range of $1.45 to $1.53.
    • 123.5 million diluted weighted average shares outstanding.
    • Unlevered free cash flow in the range of $265.0 million to $275.0 million.

    Conference Call Information

    Tenable will host a conference call on July 30, 2025 at 4:30 p.m. Eastern Time to discuss its financial results. The conference call can be accessed at 877-407-9716 (U.S.) and 201-493-6779 (international). A live webcast of the event will be available on the Tenable Investor Relations website at https://investors.tenable.com. An archived replay of the live broadcast will be available on the Investor Relations page of the website following the call.

    About Tenable

    Tenable® is the exposure management company, exposing and closing the cybersecurity gaps that erode business value, reputation and trust. The company’s AI-powered exposure management platform radically unifies security visibility, insight and action across the attack surface, equipping modern organizations to protect against attacks from IT infrastructure to cloud environments to critical infrastructure and everywhere in between. By protecting enterprises from security exposure, Tenable reduces business risk for approximately 44,000 customers around the globe. Learn more at tenable.com.

    Contact Information

    Investor Relations
    investors@tenable.com

    Media Relations
    tenablepr@tenable.com

    Forward-Looking Statements

    This press release includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, our platform’s ability to help protect enterprises from security exposure and streamline vulnerability analysis and response, business strategy and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. These risks and uncertainties are detailed in the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024 and other filings that we make from time to time with the SEC, which are available on the SEC’s website at sec.gov. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements subsequent to the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

    Non-GAAP Financial Measures

    To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance the overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

    We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important metrics used by management for financial and operational decision-making. We include these non-GAAP financial measures to present our financial performance using a management view and because we believe that these measures provide an additional comparison of our core financial performance over multiple periods with other companies in our industry.

    Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.

    Calculated Current Billings: We define calculated current billings, a non-GAAP financial measure, as total revenue recognized in a period plus the change in current deferred revenue in the corresponding period. We believe that calculated current billings is a key metric to measure our periodic performance. Given that most of our customers pay in advance (including multi-year contracts), but we generally recognize the related revenue ratably over time, we use calculated current billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. We believe that calculated current billings, which excludes deferred revenue for periods beyond twelve months in a customer’s contractual term, more closely correlates with annual contract value and that the variability in total billings, depending on the timing of large multi-year contracts and the preference for annual billing versus multi-year upfront billing, may distort growth in one period over another.

    Free Cash Flow and Unlevered Free Cash Flow: We define free cash flow, a non-GAAP financial measure, as net cash provided by operating activities less purchases of property and equipment and capitalized software development costs. We believe free cash flow is an important liquidity measure of the cash that is available (if any), after purchases of property and equipment and capitalized software development costs, for investment in our business and to make acquisitions. We believe that free cash flow is useful as a liquidity measure because it measures our ability to generate cash. We define unlevered free cash flow as free cash flow plus cash paid for interest and other financing costs. We believe unlevered free cash flow is useful as a liquidity measure as it measures the cash that is available to invest in our business and meet our current debt obligations and future financing needs. However, given our debt obligations, non-cancelable commitments and other contractual obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses.

    Non-GAAP Income from Operations and Non-GAAP Operating Margin: We define these non-GAAP financial measures as their respective GAAP measures, excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses, costs related to the intra-entity asset transfers resulting from the internal restructuring of legal entities, and amortization of acquired intangible assets. Acquisition-related expenses include transaction and integration expenses, as well as costs related to the intercompany transfer of acquired intellectual property. Restructuring expenses include non-ordinary course severance, employee related benefits, and other charges to reorganize business operations. We believe that the exclusion of these expenses provides for a useful comparison of our operating results to prior periods and to our peer companies, which commonly exclude restructuring expenses.

    Non-GAAP Net Income and Non-GAAP Earnings Per Share: We define non-GAAP net income as GAAP net loss, excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses and amortization of acquired intangible assets, including the applicable tax impacts. In addition, we exclude the tax impact and related costs of intra-entity asset transfers resulting from the internal restructuring of legal entities as well as deferred income tax benefits recognized in connection with acquisitions. We use non-GAAP net income to calculate non-GAAP earnings per share.

    Non-GAAP Gross Profit and Non-GAAP Gross Margin: We define non-GAAP gross profit as GAAP gross profit, excluding the effect of stock-based compensation and amortization of acquired intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of revenue.

    Non-GAAP Sales and Marketing Expense, Non-GAAP Research and Development Expense and Non-GAAP General and Administrative Expense: We define these non-GAAP measures as their respective GAAP measures, excluding stock-based compensation, acquisition-related expenses and costs related to intra-entity asset transfers resulting from the internal restructuring of legal entities.

    TENABLE HOLDINGS, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (unaudited)
     
      Three Months Ended June 30,   Six Months Ended June 30,
    (in thousands, except per share data)   2025       2024       2025       2024  
    Revenue $ 247,295     $ 221,241     $ 486,432     $ 437,202  
    Cost of revenue(1)   54,434       48,798       106,894       97,730  
    Gross profit   192,861       172,443       379,538       339,472  
    Operating expenses:              
    Sales and marketing(1)   107,091       101,129       210,273       200,954  
    Research and development(1)   59,236       45,149       112,459       88,876  
    General and administrative(1)   33,982       30,302       81,965       61,320  
    Restructuring   —       4,681       —       6,070  
    Total operating expenses   200,309       181,261       404,697       357,220  
    Loss from operations   (7,448 )     (8,818 )     (25,159 )     (17,748 )
    Interest income   4,080       5,974       9,007       11,598  
    Interest expense   (7,139 )     (8,073 )     (14,150 )     (16,185 )
    Other income (expense), net   25       93       499       (1,217 )
    Loss before income taxes   (10,482 )     (10,824 )     (29,803 )     (23,552 )
    Provision for income taxes   4,224       3,748       7,838       5,406  
    Net loss $ (14,706 )   $ (14,572 )   $ (37,641 )   $ (28,958 )
                   
    Net loss per share, basic and diluted $ (0.12 )   $ (0.12 )   $ (0.31 )   $ (0.25 )
    Weighted-average shares used to compute net loss per share, basic and diluted   120,979       118,681       120,533       118,111  

    _______________

    (1) Includes stock-based compensation as follows:

      Three Months Ended June 30,   Six Months Ended June 30,
        2025       2024       2025       2024  
    Cost of revenue $ 3,460     $ 3,288     $ 6,775     $ 6,270  
    Sales and marketing   17,818       16,276       34,448       31,576  
    Research and development   15,300       11,799       28,267       22,960  
    General and administrative(2)   9,948       10,035       32,939       20,311  
    Total stock-based compensation $ 46,526     $ 41,398     $ 102,429     $ 81,117  

    _______________

    (2) Stock-based compensation in the six months ended June 30, 2025 includes $14.6 million of expense related to the accelerated vesting of equity awards in Q1 for our late CEO.

    TENABLE HOLDINGS, INC.
    CONSOLIDATED BALANCE SHEETS
     
      June 30, 2025   December 31, 2024
    (in thousands, except per share data) (unaudited)    
    Assets      
    Current assets:      
    Cash and cash equivalents $ 175,025     $ 328,647  
    Short-term investments   211,489       248,547  
    Accounts receivable (net of allowance for doubtful accounts of $691 and $525 at June 30, 2025 and December 31, 2024, respectively)   181,114       258,734  
    Deferred commissions   50,785       51,791  
    Prepaid expenses and other current assets   54,079       53,026  
    Total current assets   672,492       940,745  
    Property and equipment, net   42,577       39,265  
    Deferred commissions (net of current portion)   64,274       67,914  
    Operating lease right-of-use assets   36,880       45,139  
    Acquired intangible assets, net   128,860       94,461  
    Goodwill   697,769       541,292  
    Other assets   13,720       13,303  
    Total assets $ 1,656,572     $ 1,742,119  
           
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable and accrued expenses $ 18,828     $ 19,981  
    Accrued compensation   55,574       55,784  
    Deferred revenue   624,548       650,372  
    Operating lease liabilities   7,138       6,801  
    Other current liabilities   7,179       5,154  
    Total current liabilities   713,267       738,092  
    Deferred revenue (net of current portion)   173,261       182,815  
    Term loan, net of issuance costs (net of current portion)   355,439       356,705  
    Operating lease liabilities (net of current portion)   54,059       56,224  
    Other liabilities   9,847       8,329  
    Total liabilities   1,305,873       1,342,165  
           
    Stockholders’ equity:      
    Common stock (par value: $0.01; 500,000 shares authorized; 127,352 and 122,371 shares issued at June 30, 2025 and December 31, 2024, respectively)   1,274       1,224  
    Additional paid-in capital   1,489,379       1,374,659  
    Treasury stock (at cost: 6,365 and 2,673 shares at June 30, 2025 and December 31, 2024, respectively)   (241,239 )     (114,911 )
    Accumulated other comprehensive income   262       318  
    Accumulated deficit   (898,977 )     (861,336 )
    Total stockholders’ equity   350,699       399,954  
    Total liabilities and stockholders’ equity $ 1,656,572     $ 1,742,119  
    TENABLE HOLDINGS, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (unaudited)
     
      Six Months Ended June 30,
    (in thousands)   2025       2024  
    Cash flows from operating activities:      
    Net loss $ (37,641 )   $ (28,958 )
    Adjustments to reconcile net loss to net cash provided by operating activities:    
    Depreciation and amortization   20,680       15,864  
    Stock-based compensation   102,429       81,117  
    Net accretion of discounts and amortization of premiums on short-term investments   (1,975 )     (4,378 )
    Amortization of debt issuance costs   707       662  
    Restructuring   —       4,528  
    Other   1,496       2,184  
    Changes in operating assets and liabilities:      
    Accounts receivable   79,766       40,462  
    Prepaid expenses and other assets   5,092       18,105  
    Accounts payable, accrued expenses and accrued compensation   (4,120 )     (20,162 )
    Deferred revenue   (43,107 )     (24,807 )
    Other current and noncurrent liabilities   6,543       (2,867 )
    Net cash provided by operating activities   129,870       81,750  
           
    Cash flows from investing activities:      
    Purchases of property and equipment   (10,901 )     (1,191 )
    Capitalized software development costs   (1,323 )     (4,767 )
    Purchases of short-term investments   (83,338 )     (160,405 )
    Sales and maturities of short-term investments   122,314       147,778  
    Proceeds from other investments   664       3,512  
    Purchases of other investments   —       (250 )
    Business combinations, net of cash acquired   (196,182 )     (29,162 )
    Net cash used in investing activities   (168,766 )     (44,485 )
           
    Cash flows from financing activities:      
    Payments on term loan   (1,875 )     (1,875 )
    Proceeds from stock issued in connection with the employee stock purchase plan   9,712       9,878  
    Proceeds from the exercise of stock options   2,187       4,135  
    Payments for taxes related to net share settlement of equity awards   (1,329 )     —  
    Purchase of treasury stock   (124,999 )     (49,991 )
    Net cash used in financing activities   (116,304 )     (37,853 )
    Effect of exchange rate changes on cash and cash equivalents and restricted cash   1,578       (3,077 )
    Net decrease in cash and cash equivalents and restricted cash   (153,622 )     (3,665 )
    Cash and cash equivalents and restricted cash at beginning of period   328,647       237,132  
    Cash and cash equivalents and restricted cash at end of period $ 175,025     $ 233,467  
    TENABLE HOLDINGS, INC.
    REVENUE COMPONENTS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (unaudited)
     
    Revenue Three Months Ended June 30,   Six Months Ended June 30,
    (in thousands)   2025       2024       2025       2024  
    Subscription revenue $ 228,031     $ 202,538     $ 448,474     $ 400,173  
    Perpetual license and maintenance revenue   11,411       12,016       22,963       24,172  
    Professional services and other revenue   7,853       6,687       14,995       12,857  
    Revenue(1) $ 247,295     $ 221,241     $ 486,432     $ 437,202  

    _______________

    (1) Recurring revenue, which includes revenue from subscription arrangements for software (both recognized ratably over the subscription term and upon delivery) and cloud-based solutions and maintenance associated with perpetual licenses, represented 96% of revenue in the three and six months ended June 30, 2025 and 2024.

    Calculated Current Billings Three Months Ended June 30,   Six Months Ended June 30,
    (in thousands)   2025       2024       2025       2024  
    Revenue $ 247,295     $ 221,241     $ 486,432     $ 437,202  
    Deferred revenue (current), end of period   624,548       562,587       624,548       562,587  
    Deferred revenue (current), beginning of period(1)   (633,258 )     (562,683 )     (657,035 )     (580,887 )
    Calculated current billings $ 238,585     $ 221,145     $ 453,945     $ 418,902  

    ________________
    (1) Deferred revenue (current), beginning of period for the three months ended June 30, 2025 and 2024, and the six months ended June 30, 2025 and 2024 includes $0.1 million, $0.1 million, $6.7 million and $0.1 million, respectively, related to acquired deferred revenue.

    Remaining Performance Obligations June 30,   Change
    (in thousands)   2025       2024     %
    Remaining performance obligations, short-term $ 641,918     $ 572,015       12 %
    Remaining performance obligations, long-term   247,225       175,526       41 %
    Remaining performance obligations $ 889,143     $ 747,541       19 %
    Free Cash Flow and Unlevered Free Cash Flow Three Months Ended June 30,   Six Months Ended June 30,
    (in thousands)   2025       2024       2025       2024  
    Net cash provided by operating activities $ 42,463     $ 31,424     $ 129,870     $ 81,750  
    Purchases of property and equipment   (4,348 )     (526 )     (10,901 )     (1,191 )
    Capitalized software development costs   (699 )     (2,235 )     (1,323 )     (4,767 )
    Free cash flow   37,416       28,663       117,646       75,792  
    Cash paid for interest and other financing costs   6,859       7,839       13,433       15,450  
    Unlevered free cash flow $ 44,275     $ 36,502     $ 131,079     $ 91,242  

    Free cash flow and unlevered free cash flow for the periods presented were impacted by:

      Three Months Ended June 30,   Six Months Ended June 30,
    (in thousands)   2025       2024       2025       2024  
    Employee stock purchase plan activity $ 4,923     $ 3,702     $ (490 )   $ (2,630 )
    Acquisition-related expenses   (1,630 )     (197 )     (4,819 )     (663 )
    Restructuring   —       (1,597 )     —       (5,419 )
    Non-GAAP Income from Operations and Non-GAAP Operating Margin Three Months Ended June 30,   Six Months Ended June 30,
    (dollars in thousands)   2025       2024       2025       2024  
    Loss from operations $ (7,448 )   $ (8,818 )   $ (25,159 )   $ (17,748 )
    Stock-based compensation   46,526       41,398       102,429       81,117  
    Acquisition-related expenses   2,081       763       6,702       924  
    Restructuring   —       4,681       —       6,070  
    Amortization of acquired intangible assets   6,537       4,760       12,401       9,429  
    Non-GAAP income from operations $ 47,696     $ 42,784     $ 96,373     $ 79,792  
    Operating margin   (3 )%     (4 )%     (5 )%     (4 )%
    Non-GAAP operating margin   19 %     19 %     20 %     18 %
    Non-GAAP Net Income and Non-GAAP Earnings Per Share Three Months Ended June 30,   Six Months Ended June 30,
    (in thousands, except per share data)   2025       2024       2025       2024  
    Net loss $ (14,706 )   $ (14,572 )   $ (37,641 )   $ (28,958 )
    Stock-based compensation   46,526       41,398       102,429       81,117  
    Tax impact of stock-based compensation(1)   1,041       1,175       1,896       98  
    Acquisition-related expenses(2)   2,081       763       6,702       924  
    Restructuring(2)   —       4,681       —       6,070  
    Amortization of acquired intangible assets(2)   6,537       4,760       12,401       9,429  
    Tax impact of acquisitions   (42 )     (43 )     (100 )     (78 )
    Non-GAAP net income $ 41,437     $ 38,162     $ 85,687     $ 68,602  
                   
    Net loss per share, diluted $ (0.12 )   $ (0.12 )   $ (0.31 )   $ (0.25 )
    Stock-based compensation   0.38       0.35       0.85       0.69  
    Tax impact of stock-based compensation(1)   0.01       0.01       0.02       —  
    Acquisition-related expenses(2)   0.02       —       0.05       0.01  
    Restructuring(2)   —       0.04       —       0.05  
    Amortization of acquired intangible assets(2)   0.05       0.04       0.10       0.08  
    Tax impact of acquisitions   —       —       —       —  
    Adjustment to diluted earnings per share(3)   —       (0.01 )     (0.02 )     (0.02 )
    Non-GAAP earnings per share, diluted $ 0.34     $ 0.31     $ 0.69     $ 0.56  
                   
    Weighted-average shares used to compute GAAP net loss per share, diluted   120,979       118,681       120,533       118,111  
                   
    Weighted-average shares used to compute non-GAAP earnings per share, diluted   122,875       123,056       123,516       123,161  

    ________________

    (1) The tax impact of stock-based compensation is based on the tax treatment for the applicable tax jurisdictions.
    (2) The tax impact of acquisition-related expenses, restructuring and the amortization of acquired intangible assets are not material.
    (3) An adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.

    Non-GAAP Gross Profit and Non-GAAP Gross Margin Three Months Ended June 30,   Six Months Ended June 30,
    (dollars in thousands)   2025       2024       2025       2024  
    Gross profit $ 192,861     $ 172,443     $ 379,538     $ 339,472  
    Stock-based compensation   3,460       3,288       6,775       6,270  
    Amortization of acquired intangible assets   6,537       4,760       12,401       9,429  
    Non-GAAP gross profit $ 202,858     $ 180,491     $ 398,714     $ 355,171  
    Gross margin   78 %     78 %     78 %     78 %
    Non-GAAP gross margin   82 %     82 %     82 %     81 %
    Non-GAAP Sales and Marketing Expense Three Months Ended June 30,   Six Months Ended June 30,
    (dollars in thousands)   2025       2024       2025       2024  
    Sales and marketing expense $ 107,091     $ 101,129     $ 210,273     $ 200,954  
    Less: Stock-based compensation   17,818       16,276       34,448       31,576  
    Less: Acquisition-related expenses   258       49       1,312       49  
    Non-GAAP sales and marketing expense $ 89,015     $ 84,804     $ 174,513     $ 169,329  
    Non-GAAP sales and marketing expense % of revenue   36 %     38 %     36 %     39 %
    Non-GAAP Research and Development Expense Three Months Ended June 30,   Six Months Ended June 30,
    (dollars in thousands)   2025       2024       2025       2024  
    Research and development expense $ 59,236     $ 45,149     $ 112,459     $ 88,876  
    Less: Stock-based compensation   15,300       11,799       28,267       22,960  
    Less: Acquisition-related expenses   532       —       1,771       (20 )
    Non-GAAP research and development expense $ 43,404     $ 33,350     $ 82,421     $ 65,936  
    Non-GAAP research and development expense % of revenue   18 %     15 %     17 %     15 %
    Non-GAAP General and Administrative Expense Three Months Ended June 30,   Six Months Ended June 30,
    (dollars in thousands)   2025       2024       2025       2024  
    General and administrative expense $ 33,982     $ 30,302     $ 81,965     $ 61,320  
    Less: Stock-based compensation   9,948       10,035       32,939       20,311  
    Less: Acquisition-related expenses   1,291       714       3,619       895  
    Non-GAAP general and administrative expense $ 22,743     $ 19,553     $ 45,407     $ 40,114  
    Non-GAAP general and administrative expense % of revenue   9 %     9 %     9 %     9 %

    The following adjustments to reconcile forecasted non-GAAP income from operations, non-GAAP net income, non-GAAP earnings per share, free cash flow and unlevered free cash flow are subject to a number of uncertainties and assumptions, each of which are inherently difficult to forecast. As a result, actual adjustments and GAAP results may differ materially.

    Forecasted Non-GAAP Income from Operations Three Months Ending
    September 30, 2025    		   Year Ending
    December 31, 2025
    (in millions) Low   High   Low   High
    Forecasted loss from operations $ (3.1 )   $ (1.1 )   $ (25.8 )   $ (15.8 )
    Forecasted stock-based compensation   47.6       47.6       197.5       197.5  
    Forecasted acquisition-related expenses   0.7       0.7       7.3       7.3  
    Forecasted amortization of acquired intangible assets   6.8       6.8       26.0       26.0  
    Forecasted non-GAAP income from operations $ 52.0     $ 54.0     $ 205.0     $ 215.0  
    Forecasted Non-GAAP Net Income and Non-GAAP Earnings Per Share Three Months Ending
    September 30, 2025    		   Year Ending
    December 31, 2025
    (in millions, except per share data) Low   High   Low   High
    Forecasted net loss(1) $ (12.0 )   $ (10.0 )   $ (55.4 )   $ (45.4 )
    Forecasted stock-based compensation   47.6       47.6       197.5       197.5  
    Forecasted tax impact of stock-based compensation   1.0       1.0       3.8       3.8  
    Forecasted acquisition-related expenses   0.7       0.7       7.3       7.3  
    Forecasted amortization of acquired intangible assets   6.8       6.8       26.0       26.0  
    Forecasted tax impact of acquisitions   (0.1 )     (0.1 )     (0.2 )     (0.2 )
    Forecasted non-GAAP net income $ 44.0     $ 46.0     $ 179.0     $ 189.0  
                   
    Forecasted net loss per share, diluted(1) $ (0.10 )   $ (0.08 )   $ (0.46 )   $ (0.38 )
    Forecasted stock-based compensation   0.39       0.39       1.63       1.63  
    Forecasted tax impact of stock-based compensation   0.01       0.01       0.03       0.03  
    Forecasted acquisition-related expenses   0.01       0.01       0.06       0.06  
    Forecasted amortization of acquired intangible assets   0.06       0.06       0.21       0.21  
    Forecasted tax impact of acquisitions   —       —       —       —  
    Adjustment to diluted earnings per share(2)   (0.01 )     (0.02 )     (0.02 )     (0.02 )
    Forecasted non-GAAP earnings per share, diluted $ 0.36     $ 0.37     $ 1.45     $ 1.53  
                   
    Forecasted weighted-average shares used to compute GAAP net loss per share, diluted   121.0       121.0       121.0       121.0  
    Forecasted weighted-average shares used to compute non-GAAP earnings per share, diluted   123.0       123.0       123.5       123.5  

    ________________
    (1) The forecasted GAAP net loss assumes income tax expense of $4.3 million and $16.4 million in the three months ending September 30, 2025 and year ending December 31, 2025, respectively.

    (2) Adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.

    Forecasted Free Cash Flow and Unlevered Free Cash Flow Year Ending
    December 31, 2025
    (in millions) Low   High
    Forecasted net cash provided by operating activities $ 254.0     $ 264.0  
    Forecasted purchases of property and equipment   (13.0 )     (13.0 )
    Forecasted capitalized software development costs   (3.0 )     (3.0 )
    Forecasted free cash flow   238.0       248.0  
    Forecasted cash paid for interest and other financing costs   27.0       27.0  
    Forecasted unlevered free cash flow $ 265.0     $ 275.0  

    The MIL Network –

    July 31, 2025

  • MIL-OSI: Medallion Financial Corp. Reports 2025 Second Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    Reports 56% Increase in Net Income as Compared to the Prior Year Quarter
    Announces Third Quarter 2025 Dividend of $0.12 Per Share

    NEW YORK, July 30, 2025 (GLOBE NEWSWIRE) — Medallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the “Company”), a specialty finance company that originates and services loans in various consumer and commercial industries, along with offering loan origination services to fintech strategic partners, announced today its financial results for the second quarter ended June 30, 2025.

    2025 Second Quarter Highlights

    • Net income grew 56% to $11.1 million, or $0.46 per share, compared to $7.1 million, or $0.30 per share, in the prior year quarter.
    • Net interest income grew 7% to $53.4 million from $49.9 million in the prior year quarter.
    • Net interest margin (“NIM”) on net loans was 8.42%, consistent with 8.42% in the prior year quarter, and NIM on gross loans was 8.09%, compared to 8.12% in the prior year quarter.
    • Loan originations grew to $375.0 million, compared to $309.1 million in the prior year quarter, and included $168.6 million of strategic partnership loan originations in the current quarter compared to $24.3 million in the prior year quarter.
    • The loan portfolio as of June 30, 2025 was $2.485 billion, up 4% compared to $2.386 billion a year ago.
    • Credit loss provision increased to $21.6 million from $18.6 million in the prior year quarter.
    • Net book value per share as of June 30, 2025 was $16.77 per share, up 10% from $15.25 a year ago.
    • The Company declared and paid a quarterly cash dividend of $0.12 per share.
    • The Company repurchased 48,166 shares of its common stock at an average cost of $9.44 per share for $0.5 million.

    Executive Commentary

    Andrew Murstein, President and Chief Operating Officer of Medallion Financial, commented, “We are pleased with the strong results we delivered in the second quarter of 2025, with a 56% increase in net income year-over-year. This performance reflects the strength of our core lending businesses and disciplined execution across our business lines.

    During the quarter, we saw meaningful contributions from our recreation, home improvement and commercial lending segments, supported by solid portfolio originations and higher interest income. Over the past eight quarters, our commercial division has consistently generated net gains from equity investments, totaling $27.6 million for the two-year period, with six of the past eight quarters having significant gains. These equity gains are a result of years of strategic investment and highlight the long-term value embedded in our commercial portfolio. Although we cannot predict when and if these gains will occur, with a portfolio of more than 30 equity investments, represented by $8.1 million on our balance sheet, we believe we will experience additional gains in the future. In addition, we are pleased that our strategic partners loan program in Medallion Bank continues to grow with $169 million in loan originations in the quarter compared to $24 million a year ago.

    Overall, we are encouraged by the momentum in our business. With the recent preferred offering at Medallion Bank, we believe we are well-positioned for growth and to continue generating strong returns for our shareholders.”

    Business Segment Highlights

    Recreation Lending Segment

    • Originations were $142.8 million during the quarter, compared to $209.6 million a year ago.
    • Recreation loans, including loans held for investment and loans held for sale, grew 3% to $1.546 billion, or 62% of total loans, as of June 30, 2025, compared to $1.497 billion a year ago.
    • Average loan size was $21,000 with a weighted average FICO score, measured at the time of loan origination, of 684.
    • Interest income grew 8% to $51.1 million for the quarter, from $47.5 million in the prior year quarter.
    • The average interest rate was 15.12% at quarter-end, 15.10% excluding loans held for sale, compared to 14.80% a year ago.
    • Recreation loans 90 days or more past due were $7.3 million, or 0.49% of gross recreation loans, as of June 30, 2025, compared to $5.9 million, or 0.41%, a year ago.
    • Allowance for credit loss was 5.05% at quarter-end for loans held for investment, compared to 4.35% a year ago.

    Home Improvement Lending Segment

    • Originations were $54.3 million during the quarter, compared to $68.0 million a year ago.
    • Home improvement loans grew 4% to $803.5 million, or 32% of total loans, as of June 30, 2025, compared to $773.2 million a year ago.
    • Average loan size was $22,000 with a weighted average FICO score, measured at the time of loan origination, of 769.
    • Interest income grew 14% to $20.1 million for the quarter, from $17.7 million in the prior year quarter.
    • The average interest rate was 9.87% at quarter-end, compared to 9.71% a year ago.
    • Home improvement loans 90 days or more past due were $1.3 million, or 0.16% of gross home improvement loans, as of June 30, 2025, compared to $1.3 million, or 0.17%, a year ago.
    • Allowance for credit loss was 2.54% at quarter-end, compared to 2.38% a year ago.

    Commercial Lending Segment

    • Originations were $9.4 million during the quarter.
    • Commercial loans grew to $121.4 million at June 30, 2025, compared to $110.2 million a year ago.
    • Average loan size was $3.6 million, invested in 34 portfolio companies.
    • For the quarter ended June 30, 2025, net gains recognized with respect to equity investments were $6.1 million.
    • The average interest rate on the portfolio was 13.43%, compared to 13.05% a year ago.

    Strategic Partnerships

    • Originations were $168.6 million during the quarter, compared to $24.3 million a year ago.
    • Total strategic partnership loans held as of quarter end were $12.3 million.
    • Fees generated from strategic partnerships totaled $0.8 million for the quarter, as compared to $0.5 million for the quarter ended June 30, 2024.
    • Average loan holding period of strategic partnership loans was 5 days.

    Taxi Medallion Lending Segment

    • The Company collected $2.3 million of cash on taxi medallion-related assets during the quarter, which resulted in net recoveries and gains of $1.4 million.
    • Total net taxi medallion assets declined to $5.9 million, a 41% reduction from a year ago, and represented less than 0.3% of the Company’s total assets, as of June 30, 2025.

    Loan Portfolio

    The following table provides information regarding the composition of our loan portfolio for the periods presented:

        June 30, 2025     December 31, 2024  
    (Dollars in thousands)   Amount   As a
    Percent of
    Total Loans    		     Amount   As a
    Percent of
    Total Loans    		  
    Loans held for investment:                    
    Recreation   $ 1,486,047   60 %   $ 1,422,403   57 %
    Home improvement     803,535   32       827,211   33  
    Commercial     121,415   5       111,273   4  
    Taxi medallion     1,564   *       1,909   *  
    Total loans     2,412,561   97       2,362,796   95  
    Loans held for sale, at lower of amortized cost or fair value:                    
    Recreation     60,205   2       120,840   5  
    Strategic partnership     12,285   *       7,386   *  
    Total loans held for sale, at lower of amortized cost or fair value     72,490   3       128,226   5  
    Total loans and loans held for sale   $ 2,485,051   100 %   $ 2,491,022   100 %

    (*) Less than 1%.

    Balance Sheet

    • Cash and cash equivalents, including investment securities, at June 30, 2025 were $213.5 million, compared to $213.8 million at June 30, 2024.
    • As of June 30, 2025, total assets amounted to $2.880 billion, up from $2.761 billion at June 30, 2024. The increase is largely due to an increase in prepaid expense which is a result of the redemption of Medallion Bank’s Series F preferred stock on July 1, 2025.
    • As of June 30, 2025, total liabilities amounted to $2.347 billion, up slightly from $2.338 billion a year ago.

    Capital Allocation

    Quarterly Dividend

    • The Board of Directors declared a quarterly dividend of $0.12 per share, payable on August 29, 2025, to shareholders of record at the close of business on August 15, 2025. This dividend amount remains unchanged from the $0.12 per share paid in the second quarter of 2025, and 20% higher than the same quarter last year.
    Dividends Announced   Amount
    Per Share    		   Record
    Date    		   Payment
    Date
    Q3 2025   $ 0.12   8/15/2025   8/29/2025
    Q2 2025     0.12   5/15/2025   5/30/2025
    Q1 2025     0.11   3/17/2025   3/31/2025
    Total: Year 2025 (Year to Date)     0.35        
    Total: Year 2024     0.41        
    Total: Year 2023     0.34        
    Total: Year 2022 *     0.32        

    (*) Dividend reinstated in Q1 2022.

    Stock Repurchase Plan

    • During the three months ended June 30, 2025, the Company repurchased 48,166 shares of its common stock at an average cost of $9.44 per share for $0.5 million.
    • As of June 30, 2025, the Company had $14.4 million remaining under its $40 million stock repurchase program.

    Conference Call Information

    The Company will host a conference call to discuss its second quarter financial results tomorrow, Thursday, July 31, 2025, at 9:00 a.m. Eastern time.

    In connection with its earnings release, the Company has updated its quarterly supplement presentation, which is now available at www.medallion.com.

    How to Participate

    A link to the live audio webcast of the conference call will also be available at the Company’s IR website.

    Replay Information

    The conference call replay will be available following the end of the call through Thursday, August 7, 2025

    • Dial-in: (412) 317-6671
    • Passcode: 1020 1134

    Additionally, the webcast replay will be available at the Company’s IR website.

    About Medallion Financial Corp.

    Medallion Financial Corp. (NASDAQ: MFIN) and its subsidiaries originate and service a growing portfolio of consumer loans and mezzanine loans in various industries. Key industries served include recreation (towable RVs and marine) and home improvement (replacement roofs, swimming pools, and windows). Medallion Financial Corp. is headquartered in New York City, NY, and its largest subsidiary, Medallion Bank, is headquartered in Salt Lake City, Utah. For more information, please visit www.medallion.com.

    Forward-Looking Statements
    Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, net interest income and expenses, other expenses, earnings, growth, and our growth strategy. These statements are often, but not always, made using words or phrases such as “will” and “continue” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These statements relate to future public announcements of our earnings, expectations regarding our loan portfolio, including collections on our taxi medallion loans, the potential for future asset growth, and market share opportunities. Medallion’s actual results may differ significantly from the results discussed in such forward-looking statements. For example, statements about the effects of the current economy, whether inflation or the risk of recession, the effects of tariffs, operations, financial performance and prospects constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond Medallion’s control. In addition to risks relating to the current economy, for a description of certain risks to which Medallion is or may be subject, please refer to the factors discussed under the heading “Risk Factors” in Medallion’s 2024 Annual Report on Form 10-K.

    Company Contact:

    Investor Relations
    InvestorRelations@medallion.com
    212-328-2176

    Investor Relations
    The Equity Group Inc.
    Lena Cati
    lcati@theequitygroup.com
    (212) 836-9611

    Val Ferraro
    vferraro@theequitygroup.com
    (212) 836-9633

                       
    MEDALLION FINANCIAL CORP.
    CONSOLIDATED BALANCE SHEETS
    (UNAUDITED)
                       
    (Dollars in thousands, except share and per share data)   June 30,
    2025    		     December 31,
    2024    		     June 30,
    2024    		  
    Assets                  
    Cash, cash equivalents, and federal funds sold   $ 151,994     $ 169,572     $ 157,961  
    Investment securities     61,529       54,805       55,830  
    Equity investments     8,097       9,198       10,795  
    Loans held for sale, at lower of amortized cost or fair value     72,490       128,226       —  
    Loans     2,412,561       2,362,796       2,385,590  
    Allowance for credit losses     (106,896 )     (97,368 )     (89,788 )
    Net loans receivable     2,305,665       2,265,428       2,295,802  
    Goodwill and intangible assets, net     169,227       169,949       170,672  
    Property, equipment, and right-of-use lease asset, net     11,890       13,756       14,094  
    Accrued interest receivable     15,294       15,314       13,299  
    Loan collateral in process of foreclosure     9,007       9,932       9,359  
    Other assets     74,801       32,426       33,064  
    Total assets   $ 2,879,994     $ 2,868,606     $ 2,760,876  
    Liabilities                  
    Deposits   $ 2,009,176     $ 2,090,071     $ 2,006,782  
    Long-term debt     199,928       232,159       230,803  
    Short-term borrowings     86,750       49,000       37,500  
    Deferred tax liabilities, net     19,261       20,995       22,394  
    Operating lease liabilities     4,041       5,128       6,071  
    Accrued interest payable     5,746       8,231       7,945  
    Accounts payable and accrued expenses     22,527       24,064       26,592  
    Total liabilities     2,347,429       2,429,648       2,338,087  
    Total stockholders’ equity     389,896       370,170       354,001  
    Non-controlling interest in consolidated subsidiaries     142,669       68,788       68,788  
    Total equity     532,565       438,958       422,789  
    Total liabilities and equity   $ 2,879,994     $ 2,868,606     $ 2,760,876  
    Number of shares outstanding     23,246,593       23,135,624       23,211,990  
                             
    Book value per share   $ 16.77     $ 16.00     $ 15.25  
                             
    MEDALLION FINANCIAL CORP.‌
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (UNAUDITED)‌
               
        Three Months Ended June 30,     Six Months Ended June 30,
    (Dollars in thousands, except share and per share data)   2025   2024     2025   2024
    Total interest income   $ 77,442   $ 70,704     $ 152,867   $ 137,774
    Total interest expense     24,072     20,836       48,085     39,989
    Net interest income     53,370     49,868       104,782     97,785
    Provision for credit losses     21,562     18,577       43,576     35,778
    Net interest income after provision for credit losses     31,808     31,291       61,206     62,007
    Other income                  
    Gain (loss) on equity investments, net     6,096     (512 )     15,526     3,655
    Gain on sale of recreation loans     1,304     —       1,304     —
    Gain on taxi medallion assets, net     749     242       1,592     830
    Strategic partnership fees     787     480       1,472     806
    Other income     273     889       914     1,211
    Total other income, net     9,209     1,099       20,808     6,502
    Other expenses                  
    Salaries and employee benefits     10,148     9,435       20,141     18,892
    Loan servicing fees     2,899     2,692       5,716     5,162
    Collection costs     1,749     1,659       3,286     3,126
    Regulatory fees     1,109     888       1,930     1,865
    Professional fee costs, net     1,187     1,845       2,937     2,616
    Rent expense     683     698       1,358     1,355
    Amortization of intangible assets     362     362       723     723
    Other expenses     3,408     2,416       6,212     4,481
    Total other expenses     21,545     19,995       42,303     38,220
    Income before income taxes     19,472     12,395       39,711     30,289
    Income tax provision     5,805     3,782       12,518     10,140
    Net income after taxes     13,667     8,613       27,193     20,149
    Less: income attributable to the non-controlling interest     2,598     1,512       4,110     3,024
    Total net income attributable to Medallion Financial Corp.   $ 11,069   $ 7,101     $ 23,083   $ 17,125
    Basic net income per share   $ 0.49   $ 0.31     $ 1.02   $ 0.76
    Diluted net income per share   $ 0.46   $ 0.30     $ 0.96   $ 0.73
    Weighted average common shares outstanding                  
    Basic     22,783,947     22,598,102       22,677,961     22,619,743
    Diluted     24,058,084     23,453,162       23,978,214     23,609,104
    Dividends declared per common share   $ 0.12   $ 0.10     $ 0.24   $ 0.20

    The MIL Network –

    July 31, 2025

  • MIL-OSI Canada: Investor Alert: Impersonation Scam Uses Premier Scott Moe’s Image and Fake Social Media Posts to Target Saskatchewan People

    Source: Government of Canada regional news

    Released on July 30, 2025

    The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) is warning Saskatchewan people of impersonation scams on social media claiming that Premier Scott Moe is endorsing online investment platforms.

    The FCAA informs Saskatchewan investors that Premier Scott Moe does not endorse or advertise any investment platforms.

    “Do not make investment decisions based on public figure endorsements,” FCAA Securities Division Executive Director Dean Murrison said. “Scammers can create fraudulent news and social media articles that imitate the real media source. Before you consider investing with an entity, always check the registration status at aretheyregistered.ca and do not deal with any unregistered entities.”

    The FCAA cautions investors and consumers not to send money to companies that are not registered in Saskatchewan, as they may not be legitimate businesses. 

    If you have experienced entities claiming public figure endorsements for their investment platforms or anyone claiming to be acting on their behalf, contact the FCAA’s Securities Division at 306-787-5936.

    In Saskatchewan, individuals or companies need to be registered with the FCAA to trade or sell securities or derivatives. The registration provisions of The Securities Act, 1988, and accompanying regulations are intended to ensure that only honest and knowledgeable people are registered to sell securities and derivatives and that their businesses are financially stable.

    Tips to protect yourself:

    • Always verify that the person or company is registered in Saskatchewan to sell or advise about securities or derivatives. To check registration, visit The Canadian Securities Administrators’ National Registration Search at aretheyregistered.ca.
    • Know exactly what you are investing in. Make sure you understand how the investment, product, or service works.
    • Get a second opinion and seek professional advice about the investment.
    • Do not allow unknown or unverified individuals to remotely access your computer.
    • Never make an investment decision based on a notable figure endorsement. Scammers often create fake social media posts or news articles claiming an investment is endorsed by a notable figure.

    -30-

    For more information, contact:

    MIL OSI Canada News –

    July 31, 2025

  • MIL-OSI: Orange County Bancorp, Inc. Announces Record Second Quarter 2025 Earnings

    Source: GlobeNewswire (MIL-OSI)

    • Net Income increased $2.3 million, or 27.4%, to $10.5 million for the quarter ended June 30, 2025 from $8.2 million for the quarter ended June 30, 2024
    • Net Interest Income grew $1.0 million, or 4.2%, to $25.1 million for the quarter ended June 30, 2025, as compared to $24.1 million for the quarter ended June 30, 2024
    • Total Deposits rose $123.4 million, or 5.7%, to $2.3 billion at June 30, 2025, from $2.2 billion at year-end 2024
    • Total Loans increased $102.1 million, or 5.6%, to $1.9 billion at June 30, 2025, from $1.8 billion at year-end 2024
    • Book value per share increased $2.55, or 15.6%, to $18.90 at June 30, 2025, from $16.35 at December 31, 2024
    • Trust and investment advisory income rose 14.8%, to $3.4 million for the quarter ended June 30, 2025, from $3.0 million for the quarter ended June 30, 2024

    MIDDLETOWN, N.Y., July 30, 2025 (GLOBE NEWSWIRE) — Orange County Bancorp, Inc. (the “Company” – Nasdaq: OBT), parent company of Orange Bank & Trust Company (the “Bank”) and Hudson Valley Investment Advisors, Inc. (“HVIA”), today announced net income of $10.5 million, or $0.87 per basic and diluted share, for the three months ended June 30, 2025. This compares with net income of $8.2 million, or $0.73 per basic and diluted share, for the three months ended June 30, 2024. The increase in earnings per share, basic and diluted, was due primarily to increases in net interest income and total noninterest income partially offset by an increase in non-interest expense during the current period. For the six months ended June 30, 2025, net income reached $19.2 million, or $1.64 per basic and diluted share, as compared to $17.5 million, or $1.55 per basic and diluted share, for the six months ended June 30, 2024.

    Book value per share rose $2.55, or 15.6%, from $16.35 at December 31, 2024, to $18.90 at June 30, 2025. Tangible book value per share increased $2.65, or 16.8%, from $15.80 at December 31, 2024, to $18.45 at June 30, 2025 (see “Non-GAAP Financial Measure Reconciliation” below for additional detail). These increases were due to increased earnings during the six months ended June 30, 2025 and a reduction of unrealized losses in the available for sale securities (“AFS”) portfolio coupled with net proceeds of approximately $43 million from completion of a follow-on common stock offering during the second quarter of 2025.

    “I am pleased to report Orange County Bank had a very productive and successful second quarter,” said Company President and CEO Michael Gilfeather. “Nearly every segment of the Bank turned in strong financial performance, yielding $10.5 million of net income for the period, a $2.3 million, or 27% increase over the same quarter last year. These results include several one-time gains but also reflect continued strength in financial performance as we execute on our full-service, business banking strategy.

    We also completed a $46 million follow-on common stock offering during the quarter, strengthening our financial position and giving us the flexibility to continue to expand our lending business in a prudent manner while improving trading liquidity in our stock. On a per share basis, we earned $0.87 a share for the quarter ended June 30, 2025, versus $0.73 for the same quarter last year.

    Key to our strong financial performance was continued growth of our loan portfolio. Year to date, total loans increased $102.1 million, or 5.6%, to $1.9 billion at quarter end. Despite uncertainty surrounding tariff policy, loan demand and economic activity in the communities we serve remains strong, but we continue to exercise prudence in underwriting. Year-to-date, we have grown our loan portfolio without a significant change in loan yields. The average yield on our loan portfolio was 6.02% for the first half of 2025, down modestly from 6.06% for the first half of the prior year.

    Deposit growth also remains robust, with total deposits up $123.4 million year-to-date to $2.3 billion, a 5.7% increase over year end 2024. These new deposits were organically sourced, enabling us to replace $74 million of higher cost brokered deposits with lower cost Bank client funds. Our cost of deposits for the three months ended June 30, 2025 was 1.30%. We consider our low-cost deposit base a key competitive advantage of the Bank, and while there is some seasonality to these numbers, we have been highly intentional in growing this important driver of our success.

    Given that rates on both deposits and loans remained largely unchanged through the first half of the year, it stands to reason net interest margin remained stable as well. For the three months ended June 30, 2025, our net interest margin stood at an impressive 4.06%.

    Our Wealth Management division also continued its run of increasing contributions to performance with nearly 15% growth, to $3.4 million for the current quarter from $3.0 million for the same period last year. Earnings from Wealth Management, which is comprised of Trust and Investment Advisory Services, is an important source of revenue for the Company. Orange Wealth Management represents a value-added expansion of our traditional banking business which provides greater service and leads to the creation of more fees and revenues per client. In addition, many of the group’s clients are also borrowers and/or depositors of the Bank.

    Given our successful capital raise and further growth in loans, deposits, and wealth management, we had a strong second quarter. I want to once again acknowledge that none of this could happen without the experience, expertise and commitment from our employees. I thank them and our customers and shareholders for their continued confidence and support.”

    Second Quarter 2025 Financial Review

    Net Income

    Net income for the second quarter of 2025 was $10.5 million, an increase of $2.3 million, or 27.4%, from net income of $8.2 million for the second quarter of 2024. The increase represents a combination of increased net interest income and non-interest income over the same quarter last year. Net income for the six months ended June 30, 2025 was $19.2 million, as compared to $17.5 million for the same period in 2024. The increase reflects the effect of net interest income growth combined with increased non-interest income during the first six months of 2025 as compared to the prior year period. These improvements were partially offset by higher provision for credit losses in the first half of 2025 as compared to a $1.9 million recovery recognized through the provision during the first half of 2024 and associated with Signature Bank subordinated debt. The increase in non-interest income includes the recognition of gain associated with the sale of a branch location coupled with a Bank Owned Life Insurance gain related to policy proceeds from a death benefit.

    Net Interest Income

    For the three months ended June 30, 2025, net interest income rose $1.0 million, or 4.2%, to $25.1 million, versus $24.1 million during the same period last year. The increase was driven primarily by a $712 thousand increase in interest and fees combined with a $309 thousand reduction in interest expense during the current period. For the six months ended June 30, 2025, net interest income reached $48.8 million representing an increase of $3.0 million, or 6.7%, over the first half of 2024.

    Total interest income rose $712 thousand, or 2.2%, to $33.2 million for the three months ended June 30, 2025, compared to $32.5 million for the three months ended June 30, 2024. The increase was driven mainly by 5.0% growth in interest and fees associated with loans. For the six months ended June 30, 2025, total interest income rose $1.6 million, or 2.4%, to $65.1 million as compared to $63.6 million for the six months ended June 30, 2024.

    Total interest expense decreased $309 thousand during the second quarter of 2025, to $8.1 million, as compared to $8.4 million in the second quarter of 2024. The decrease was primarily due to the reduction of interest costs associated with FHLB advances and borrowings as a result of increased deposit levels during the quarter. Interest expense associated with FHLB advances drawn and other borrowings during the current quarter totaled $375 thousand as compared to $890 thousand during the second quarter of 2024. During the six months ended June 30, 2025, total interest expense fell $1.5 million, to $16.4 million, as compared to $17.9 million for the same period last year.

    Provision for Credit Losses

    The Company recognized a provision for credit losses of $2.1 million for the three months ended June 30, 2025, as compared to $2.2 million for the three months ended June 30, 2024. This current quarter provision was primarily driven by reserves associated with a specific non-accrual loan as well as the impact of the methodology associated with estimated lifetime losses and the types of loans closed during the quarter. The allowance for credit losses to total loans was 1.48% as of June 30, 2025 versus 1.44% as of December 31, 2024. For the six months ended June 30, 2025, the provision for credit losses totaled $2.3 million as compared to $570 thousand, net of recovery, for the six months ended June 30, 2024. No reserves for investment securities were recorded during the first half of 2025 or 2024, respectively.

    Non-Interest Income

    Non-interest income rose $3.5 million, or 92.2%, to $7.3 million for the three months ended June 30, 2025 as compared to $3.8 million for the three months ended June 30, 2024. The growth included the continued increased fee income within each of the Company’s fee income categories, including investment advisory income, trust income, and service charges on deposit accounts, as well as certain one-time items during the quarter. These items represented the recognition of a $1.2 million gain associated with the sale of a branch location and approximately $2.4 million of income associated with BOLI payments related to a death benefit offset by a tactical loss of approximately $727 thousand recorded on the sale of certain securities to reposition a small portion of the portfolio and replace with higher yielding securities. For the six months ended June 30, 2025, non-interest income increased approximately $4.2 million, to $11.7 million, as compared to $7.5 million for the six months ended June 30, 2024.

    Non-Interest Expense

    Non-interest expense was $16.8 million for the second quarter of 2025, reflecting an increase of $1.3 million, or 8.2%, as compared to $15.5 million for the same period in 2024. The increase in non-interest expense for the current three-month period continues to reflect the Company’s commitment to growth. This investment consists primarily of increases in occupancy costs, information technology, and professional fees. Our efficiency ratio improved to 51.6% for the three months ended June 30, 2025, from 55.5% for the same period in 2024. For the six months ended June 30, 2025, our efficiency ratio decreased to 55.0% from 57.9% for the same period in 2024. Non-interest expense for the six months ended June 30, 2025 reached $33.3 million, reflecting a $2.5 million increase over non-interest expense of $30.8 million for the six months ended June 30, 2024.

    Income Tax Expense

    Provision for income taxes for the three months ended June 30, 2025 was $3.1 million, compared to $2.0 million for the same period in 2024. The increase was directly related to provisions associated with higher levels of pre-tax income as well as the effect of certain tax adjustments for the quarter. For the six months ended June 30, 2025, the provision for income taxes was $5.7 million as compared to $4.3 million for the six months ended June 30, 2024. Our effective tax rate for the three-month period ended June 30, 2025 was 23.0%, as compared to 19.7% for the same period in 2024. Our effective tax rate for the six-month period ended June 30, 2025 was 23.0%, as compared to 19.9% for the same period in 2024.

    Financial Condition

    Total consolidated assets increased $96.3 million, or 3.8%, to $2.6 billion at June 30, 2025 from $2.5 billion at December 31, 2024. The growth of the balance sheet included increases in cash, loans, and deposits as well as paydowns of borrowings during the current six-month period.

    Total cash and due from banks increased from $150.3 million at December 31, 2024, to $175.6 million at June 30, 2025, an increase of approximately $25.3 million, or 16.8%. This increase resulted primarily from higher levels of deposit balances and the completion of the common stock offering which increased cash and due from banks.

    Total investment securities fell $37.1 million, or 8.2%, from $453.5 million at December 31, 2024 to $416.4 million at June 30, 2025. The decrease was driven primarily by investment maturities during the first six months of 2025 combined with the sale of approximately $15.0 million in securities at quarter end. The portfolio sale was a strategic initiative to offset a portion of the increases in non-interest income and replaced the investments with higher yielding securities.

    Total loans increased $102.1 million, or 5.6%, from $1.8 billion at December 31, 2024 to $1.9 billion at June 30, 2025. The increase was driven by $72.4 million of growth in commercial real estate loans, $30.5 million of increased commercial real estate construction loans, $6.5 million of increased commercial and industrial loans, and $1.8 million of growth in home equity loans. These increases were offset by decreases within the residential real estate and consumer loan segments.

    Total deposits increased $123.4 million, to $2.3 billion at June 30, 2025, from $2.2 billion at December 31, 2024. This increase was due primarily to $36.0 million of growth in noninterest-bearing demand accounts; $98.2 million of growth in interest bearing demand accounts; $14.1 million of growth in money market accounts; and $51.8 million of growth in savings accounts. The increases in deposit accounts were offset by a $76.7 million decrease in certificates of deposit, mainly associated with brokered deposits utilized by the Bank for short term funding purposes. Deposit composition at June 30, 2025 included 49.0% in demand deposit accounts (including NOW accounts) as a percentage of total deposits. Uninsured deposits, net of fully collateralized municipal relationships, remain stable and represent approximately 43% of total deposits at June 30, 2025 as compared to 39% of total deposits at December 31, 2024.

    FHLBNY short-term borrowings were $21.0 million at June 30, 2025 down from $113.5 million at December 31, 2024. The decrease in borrowings continues to be driven by increased deposits which outpaced loan growth during the first half of 2025 and allowed for paydowns of borrowings while maintaining higher levels of cash at June 30, 2025. The decrease in borrowings reflects a strategic decision to manage liquidity sources and take advantage of opportunities to reduce funding costs.

    Stockholders’ equity experienced an increase of approximately $67.1 million during the first half of 2025, reaching $252.6 million at June 30, 2025 from $185.5 million at December 31, 2024. The increase was due to the combination of a completed common stock offering which netted approximately $43 million, earnings of approximately $19.2 million, and a decrease in unrealized losses of approximately $6.3 million on the market value of investment securities within the Company’s equity as accumulated other comprehensive income (loss) (“AOCI”), net of taxes.

    At June 30, 2025, the Bank maintained capital ratios in excess of regulatory standards for well capitalized institutions. The Bank’s Tier 1 capital to average assets ratio was 12.40%, both common equity and Tier 1 capital to risk weighted assets were 16.36%, and total capital to risk weighted assets was 17.61%.

    Wealth Management

    At June 30, 2025, our Wealth Management Division, which includes trust and investment advisory, totaled $1.8 billion in assets under management or advisory, a 2.5% increase over December 31, 2024. Trust and investment advisory income for the quarter ended June 30, 2025 reached $3.4 million, a $437 thousand, or 14.8%, increase as compared to $3.0 million for the quarter ended June 30, 2024.

    The breakdown of trust and investment advisory assets as of June 30, 2025 and December 31, 2024, respectively, is as follows:

     
    ORANGE COUNTY BANCORP, INC.
    SUMMARY OF AUM/AUA
    (UNAUDITED)
    (Dollar Amounts in thousands)
      At June 30, 2025   At December 31, 2024
      Amount   Percent   Amount   Percent
    Investment Assets Under Management & Advisory $ 1,170,808   64.05 %   $ 1,105,143   61.99 %
    Trust Asset Under Administration & Management   657,181   35.95 %     677,723   38.01 %
    Total $ 1,827,989   100.00 %   $ 1,782,866   100.00 %
                   

    Loan Quality

    At June 30, 2025, the Bank had total non-performing loans of $11.7 million, or 0.61% of total loans. Total non-accrual loans represented approximately $11.7 million at June 30, 2025 compared to $6.3 million at December 31, 2024. The increase in non-accrual loans represents several different loans that have experienced payment disruption during the quarter and are at various stages of collection.

    Liquidity

    Management believes the Bank has the necessary liquidity to meet normal business needs. The Bank uses a variety of resources to manage its liquidity position. These include short term investments, cash from lending and investing activities, core-deposit growth, and non-core funding sources, such as time deposits exceeding $250,000, brokered deposits, FHLBNY advances, and other borrowings. As of June 30, 2025, the Bank’s cash and due from banks totaled $175.6 million. The Bank maintains an investment portfolio of securities available for sale, comprised mainly of US Government agency and treasury securities, Small Business Administration loan pools, mortgage-backed securities, corporate bonds, and municipal bonds. Although the portfolio generates interest income for the Bank, it also serves as an available source of liquidity and funding. As of June 30, 2025, the Bank’s investment in securities available for sale was $410.8 million, of which $66.8 million was not pledged as collateral and additional $74.3 million with the Federal Reserve which is not specifically designated to any borrowings. Additionally, as of June 30, 2025, the Bank’s overnight advance line capacity at the Federal Home Loan Bank of New York was $628.2 million, of which $76.4 million was used to collateralize municipal deposits and $10.0 million was utilized for long term advances. As of June 30, 2025, the Bank’s unused borrowing capacity at the FHLBNY was $541.8 million. The Bank also maintains additional borrowing capacity of $20 million with other correspondent banks. Additional funding is available to the Bank through the discount window lending by the Federal Reserve. At June 30, 2025, the Bank also held $74.3 million of collateral at the Federal Reserve Bank which could be utilized to provide additional funding through the discount window.

    The Bank also considers brokered deposits an element of its deposit strategy. As of June 30, 2025, the Bank had brokered deposit arrangements with various terms totaling $106.5 million.

           
    Non-GAAP Financial Measure Reconciliations      
    The following table reconciles, as of the dates set forth below, stockholders’ equity (on a GAAP basis) to tangible equity and total assets (on a GAAP basis) to tangible assets and calculates our tangible book value per share.
           
      June 30, 2025   December 31, 2024
      (Dollars in thousands except for share data)
    Tangible Common Equity:      
    Total stockholders’ equity $ 252,589     $ 185,531  
    Adjustments:      
    Goodwill   (5,359 )     (5,359 )
    Other intangible assets   (678 )     (821 )
    Tangible common equity $ 246,552     $ 179,351  
    Common shares outstanding   13,362,912       11,350,158  
    Book value per common share $ 18.90     $ 16.35  
    Tangible book value per common share $ 18.45     $ 15.80  
           
    Tangible Assets      
    Total assets $ 2,606,263     $ 2,509,927  
    Adjustments:      
    Goodwill   (5,359 )     (5,359 )
    Other intangible assets   (678 )     (821 )
    Tangible assets $ 2,600,226     $ 2,503,747  
    Tangible common equity to tangible assets   9.48 %     7.16 %
           
    NOTE: Share data and related information has been adjusted for the effect of the 2 for 1 stock split in January 2025
           

    About Orange County Bancorp, Inc

    Orange County Bancorp, Inc. is the parent company of Orange Bank & Trust Company and Hudson Valley Investment Advisors, Inc. Orange Bank & Trust Company is an independent bank that began with the vision of 14 founders over 125 years ago. It has grown through innovation and an unwavering commitment to its community and business clientele to approximately $2.6 billion in total assets. Hudson Valley Investment Advisors, Inc. is a Registered Investment Advisor in Goshen, NY. It was founded in 1996 and acquired by the Company in 2012.

    Forward Looking Statements

    Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the real estate and economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, inflation, tariffs, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, increased levels of loan delinquencies, problem assets and foreclosures, credit risk management, asset-liability management, cybersecurity risks, geopolitical conflicts, public health issues, the financial and securities markets and the availability of and costs associated with sources of liquidity.

    The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

    For further information:
    Michael Lesler
    EVP & Chief Financial Officer
    mlesler@orangebanktrust.com
    Phone: (845) 341-5111

     
    ORANGE COUNTY BANCORP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
    (UNAUDITED)
    (Dollar Amounts in thousands except per share data)
           
      June 30, 2025   December 31, 2024
           
    ASSETS      
           
    Cash and due from banks $ 175,606     $ 150,334  
    Investment securities – available-for-sale   410,814       443,775  
    (Amortized cost $478,824 at June 30, 2025 and $519,567 at December 31, 2024)    
    Restricted investment in bank stocks   5,618       9,716  
    Loans   1,917,802       1,815,751  
    Allowance for credit losses   (28,408 )     (26,077 )
    Loans, net   1,889,394       1,789,674  
           
    Premises and equipment, net   14,949       15,808  
    Accrued interest receivable   10,465       6,680  
    Bank owned life insurance   35,398       42,257  
    Goodwill   5,359       5,359  
    Intangible assets   678       821  
    Other assets   57,982       45,503  
           
    TOTAL ASSETS $ 2,606,263     $ 2,509,927  
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
           
    Deposits:      
    Noninterest bearing $ 687,120     $ 651,135  
    Interest bearing   1,589,603       1,502,224  
    Total deposits   2,276,723       2,153,359  
           
    FHLB advances, short term   21,000       113,500  
    FHLB advances, long term   10,000       10,000  
    Subordinated notes, net of issuance costs   19,626       19,591  
    Accrued expenses and other liabilities   26,325       27,946  
           
    TOTAL LIABILITIES   2,353,674       2,324,396  
           
    STOCKHOLDERS’ EQUITY      
           
    Common stock, $0.25 par value; 30,000,000 shares authorized;
    13,370,929 and 11,366,608 issued; 13,362,912 and 11,350,158 outstanding,
    at June 30, 2025 and December 31, 2024, respectively    		   3,343       2,842  
    Surplus   164,752       120,896  
    Retained Earnings   146,129       129,919  
    Accumulated other comprehensive income (loss), net of taxes   (61,436 )     (67,751 )
    Treasury stock, at cost; 8,017 and 16,450 shares at June 30,
    2025 and December 31, 2024, respectively    		   (199 )     (375 )
    TOTAL STOCKHOLDERS’ EQUITY   252,589       185,531  
           
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 2,606,263     $ 2,509,927  
           
           
    Share data has been adjusted to reflect the effect of the two-for-one stock split paid during January 2025
           
     
    ORANGE COUNTY BANCORP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (UNAUDITED)
    (Dollar Amounts in thousands except per share data)
      For Three Months Ended June 30,   Six Months Ended June 30,
        2025       2024       2025       2024  
    INTEREST INCOME              
    Interest and fees on loans $ 28,103     $ 26,778       55,417     $ 52,392  
    Interest on investment securities:              
    Taxable   2,731       3,105       5,395       6,331  
    Tax exempt   561       581       1,137       1,149  
    Interest on Federal funds sold and other   1,829       2,048       3,182       3,713  
                   
    TOTAL INTEREST INCOME   33,224       32,512       65,131       63,585  
                   
    INTEREST EXPENSE              
    Savings and NOW accounts   5,256       5,158       10,150       9,735  
    Time deposits   2,222       2,114       4,446       4,528  
    FHLB advances and borrowings   375       890       1,306       3,141  
    Subordinated notes   231       231       461       461  
    TOTAL INTEREST EXPENSE   8,084       8,393       16,363       17,865  
                   
    NET INTEREST INCOME   25,140       24,119       48,768       45,720  
                   
    Provision (recovery) for credit losses – investments   –       –       –       (1,900 )
    Provision for credit losses – loans   2,113       2,210       2,315       2,470  
    NET INTEREST INCOME AFTER              
    PROVISION FOR CREDIT LOSSES   23,027       21,909       46,453       45,150  
                   
    NONINTEREST INCOME              
    Service charges on deposit accounts   334       232       624       467  
    Trust income   1,573       1,309       3,247       2,621  
    Investment advisory income   1,823       1,650       3,589       3,225  
    Investment securities gains(losses)   (727 )     –       (727 )     –  
    Earnings on bank owned life insurance   234       270       493       512  
    Gain on sale of assets   3,635       –       3,635       –  
    Other   444       346       811       668  
    TOTAL NONINTEREST INCOME   7,316       3,807       11,672       7,493  
                   
    NONINTEREST EXPENSE              
    Salaries   6,813       6,873       13,718       13,611  
    Employee benefits   2,338       2,304       4,788       4,426  
    Occupancy expense   1,299       1,164       2,576       2,325  
    Professional fees   1,666       1,337       3,013       2,773  
    Directors’ fees and expenses   319       (125 )     625       197  
    Computer software expense   2,117       1,430       4,099       2,665  
    FDIC assessment   330       350       660       768  
    Advertising expenses   481       438       870       802  
    Advisor expenses related to trust income   22       32       44       65  
    Telephone expenses   203       188       410       375  
    Intangible amortization   72       71       143       143  
    Other   1,094       1,425       2,302       2,647  
    TOTAL NONINTEREST EXPENSE   16,754       15,487       33,248       30,797  
                   
    Income before income taxes   13,589       10,229       24,877       21,846  
                   
    Provision for income taxes   3,128       2,016       5,712       4,343  
    NET INCOME $ 10,461     $ 8,213       19,165     $ 17,503  
                   
    Basic and diluted earnings per share $ 0.87     $ 0.73     $ 1.64     $ 1.55  
                   
    Weighted average shares outstanding   11,994,815       11,282,868       11,665,181       11,276,370  
                   
                   
    Share data has been adjusted to reflect the effect of the two-for-one stock split paid during January 2025
                   
     
    ORANGE COUNTY BANCORP, INC.
    NET INTEREST MARGIN ANALYSIS
    (UNAUDITED)
    (Dollar Amounts in thousands)
                           
      Three Months Ended June 30,
        2025       2024  
      Average Balance   Interest   Average Rate   Average Balance   Interest   Average Rate
    Assets:                      
    Loans Receivable (net of PPP) $ 1,879,606     $ 28,100   6.00 %   $ 1,728,195 $ 26,778   6.21 %
    PPP Loans   152       3   7.92 %     197       –   0.00 %
    Investment securities   432,657       3,083   2.86 %     467,308       3,364   2.89 %
    Due from banks   167,987       1,829   4.37 %     160,498       2,048   5.12 %
    Other   5,773       209   14.52 %     5,343       322   24.17 %
    Total interest earning assets   2,486,175       33,224   5.36 %     2,361,541       32,512   5.52 %
    Non-interest earning assets   104,019               99,032          
    Total assets $ 2,590,194             $ 2,460,573          
                           
    Liabilities and equity:                      
    Interest-bearing demand accounts $ 397,476     $ 489   0.49 %   $ 394,697     $ 485   0.49 %
    Money market accounts   702,607       3,721   2.12 %     666,460       3,796   2.28 %
    Savings accounts   301,586       1,046   1.39 %     254,188       877   1.38 %
    Certificates of deposit   221,363       2,222   4.03 %     184,363       2,114   4.60 %
    Total interest-bearing deposits   1,623,032       7,478   1.85 %     1,499,708       7,272   1.94 %
    FHLB Advances and other borrowings   34,341       375   4.38 %     76,923       890   4.64 %
    Subordinated notes   19,615       231   4.72 %     19,544       231   4.74 %
    Total interest bearing liabilities   1,676,988       8,084   1.93 %     1,596,175       8,393   2.11 %
    Non-interest bearing demand accounts   670,150               667,455          
    Other non-interest bearing liabilities   27,436               25,717          
    Total liabilities   2,374,574               2,289,347          
    Total shareholders’ equity   215,620               171,226          
    Total liabilities and shareholders’ equity $ 2,590,194             $ 2,460,573          
                           
    Net interest income     $ 25,140           $ 24,119    
    Interest rate spread1         3.43 %           3.41 %
    Net interest margin2         4.06 %           4.10 %
    Average interest earning assets to interest-bearing liabilities   148.3 %             148.0 %        
                           
    Notes:                      
    1The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities
    2Net interest margin is the annualized net interest income divided by average interest-earning assets          
                           
     
    ORANGE COUNTY BANCORP, INC.
    NET INTEREST MARGIN ANALYSIS
    (UNAUDITED)
    (Dollar Amounts in thousands)
                           
      Six Months Ended June 30,
        2025       2024  
      Average Balance   Interest   Average Rate   Average Balance   Interest   Average Rate
    Assets:                      
    Loans Receivable (net of PPP) $ 1,854,899     $ 55,411   6.02 %   $ 1,733,197 $ 52,389   6.06 %
    PPP Loans   157       6   7.71 %     203       3   2.96 %
    Investment securities   437,191       6,205   2.86 %     474,419       6,796   2.87 %
    Due from banks   157,381       3,182   4.08 %     155,047       3,713   4.80 %
    Other   6,871       327   9.60 %     8,119       684   16.90 %
    Total interest earning assets   2,456,499       65,131   5.35 %     2,370,985       63,585   5.38 %
    Non-interest earning assets   102,995               96,839          
    Total assets $ 2,559,494             $ 2,467,824          
                           
    Liabilities and equity:                      
    Interest-bearing demand accounts $ 377,378     $ 891   0.48 %   $ 377,492     $ 922   0.49 %
    Money market accounts   694,263     $ 7,356   2.14 %     643,244       7,151   2.23 %
    Savings accounts   285,393     $ 1,903   1.34 %     245,009       1,662   1.36 %
    Certificates of deposit   222,173       4,446   4.04 %     197,003       4,528   4.61 %
    Total interest-bearing deposits   1,579,207       14,596   1.86 %     1,462,748       14,263   1.96 %
    FHLB Advances and other borrowings   59,536       1,306   4.42 %     122,203       3,141   5.15 %
    Subordinated notes   19,606       461   4.74 %     19,535       461   4.73 %
    Total interest bearing liabilities   1,658,349       16,363   1.99 %     1,604,486       17,865   2.23 %
    Non-interest bearing demand accounts   668,864               667,947          
    Other non-interest bearing liabilities   28,665               27,081          
    Total liabilities   2,355,878               2,299,514          
    Total shareholders’ equity   203,616               168,310          
    Total liabilities and shareholders’ equity $ 2,559,494             $ 2,467,824          
                           
    Net interest income     $ 48,768           $ 45,720    
    Interest rate spread1         3.36 %           3.15 %
    Net interest margin2         4.00 %           3.87 %
    Average interest earning assets to interest-bearing liabilities   148.1 %             147.8 %        
                           
    Notes:                      
    1The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities
    2Net interest margin is the annualized net interest income divided by average interest-earning assets            
                           
     
    ORANGE COUNTY BANCORP, INC.
    SELECTED RATIOS AND OTHER DATA
    (UNAUDITED)
     
        Three Months Ended June 30,   Six Months Ended June 30,
        2025   2024   2025   2024
    Performance Ratios:              
    Return on average assets (1) 1.62 %   1.34 %   1.50 %   1.42 %
    Return on average equity (1) 19.41 %   19.19 %   18.82 %   20.80 %
    Interest rate spread (2) 3.43 %   3.41 %   3.36 %   3.15 %
    Net interest margin (3) 4.06 %   4.10 %   4.00 %   3.87 %
    Dividend payout ratio (4) 14.91 %   15.80 %   15.83 %   14.82 %
    Non-interest income to average total assets 1.13 %   0.62 %   0.91 %   0.61 %
    Non-interest expenses to average total assets 2.59 %   2.52 %   2.60 %   2.50 %
    Average interest-earning assets to average interest-bearing liabilities 148.25 %   147.95 %   148.13 %   147.77 %
                     
        At   At        
        June 30, 2025   June 30, 2024        
    Asset Quality Ratios:              
    Non-performing assets to total assets 0.45 %   0.64 %        
    Non-performing loans to total loans 0.61 %   0.92 %        
    Allowance for credit losses to non-performing loans   242.51 %   173.95 %        
    Allowance for credit losses to total loans 1.48 %   1.60 %        
                     
    Capital Ratios (5):              
    Total capital (to risk-weighted assets) 17.61 %   15.09 %        
    Tier 1 capital (to risk-weighted assets) 16.36 %   13.84 %        
    Common equity tier 1 capital (to risk-weighted assets) 16.36 %   13.84 %        
    Tier 1 capital (to average assets) 12.40 %   10.04 %        
                     
    Notes:              
    (1)  Annualized for the three and six month periods ended June 30, 2025 and 2024, respectively.
    (2)  Represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the periods.
    (3)  The net interest margin represents net interest income as a percent of average interest-earning assets for the periods.
    (4)  The dividend payout ratio represents dividends paid per share divided by net income per share.
    (5)  Ratios are for the Bank only.
                     
     
    ORANGE COUNTY BANCORP, INC.
    SELECTED OPERATING DATA
    (UNAUDITED)
    (Dollar Amounts in thousands except per share data)
      Three Months Ended June 30,   Six Months Ended June 30,
      2025   2024   2025   2024
    Interest income $ 33,224   $ 32,512   $ 65,131   $ 63,585
    Interest expense   8,084     8,393     16,363     17,865
    Net interest income   25,140     24,119     48,768     45,720
    Provision for credit losses   2,113     2,210     2,315     570
    Net interest income after provision for credit losses   23,027     21,909     46,453     45,150
    Noninterest income   7,316     3,807     11,672     7,493
    Noninterest expenses   16,754     15,487     33,248     30,797
    Income before income taxes   13,589     10,229     24,877     21,846
    Provision for income taxes   3,128     2,016     5,712     4,343
    Net income $ 10,461   $ 8,213   $ 19,165   $ 17,503
                   
    Basic and diluted earnings per share $ 0.87   $ 0.73   $ 1.64   $ 1.55
    Weighted average common shares outstanding   11,994,815     11,282,868     11,665,181     11,276,370
                   
      At   At        
      June 30, 2025   December 31, 2024        
    Book value per share $ 18.90   $ 16.35        
    Net tangible book value per share (1) $ 18.45   $ 15.80        
    Outstanding common shares   13,362,912     11,350,158        
                   
    Notes:              
    (1)  Net tangible book value represents the amount of total tangible assets reduced by our total liabilities. Tangible assets are calculated by reducing total assets, as defined by GAAP, by $5,359 in goodwill and $678, and $821 in other intangible assets for June 30, 2025 and December 31, 2024, respectively.
                   
     
    ORANGE COUNTY BANCORP, INC.
    LOAN COMPOSITION
    (UNAUDITED)
    (Dollar Amounts in thousands)
      At June 30, 2025   At December 31, 2024
      Amount   Percent   Amount   Percent
    Commercial and industrial (a) $ 248,838   12.98 %   $ 242,390   13.35 %
    Commercial real estate   1,434,414   74.79 %     1,362,054   75.01 %
    Commercial real estate construction   111,483   5.81 %     80,993   4.46 %
    Residential real estate   71,169   3.71 %     74,973   4.13 %
    Home equity   19,142   1.00 %     17,365   0.96 %
    Consumer   32,756   1.71 %     37,976   2.09 %
    Total loans   1,917,802   100.00 %     1,815,751   100.00 %
    Allowance for loan losses   28,408         26,077    
    Total loans, net $ 1,889,394       $ 1,789,674    
                   
    (a) – Includes PPP loans of: $ 147       $ 170    
                   
     
    ORANGE COUNTY BANCORP, INC.
    DEPOSITS BY ACCOUNT TYPE
    (UNAUDITED)
    (Dollar Amounts in thousands)
      At June 30, 2025   At December 31, 2024
      Amount   Percent   Average Rate   Amount   Percent   Average Rate
    Noninterest-bearing demand accounts $ 687,120   30.18 %   0.00 %   $ 651,135   30.24 %   0.00 %
    Interest bearing demand accounts   429,330   18.86 %   0.52 %     331,115   15.38 %   0.42 %
    Money market accounts   693,148   30.44 %   2.08 %     679,082   31.54 %   2.15 %
    Savings accounts   322,832   14.18 %   1.40 %     271,014   12.59 %   1.25 %
    Certificates of Deposit   144,293   6.34 %   3.69 %     221,013   10.26 %   3.97 %
    Total $ 2,276,723   100.00 %   1.17 %   $ 2,153,359   100.00 %   1.31 %
                           
     
    ORANGE COUNTY BANCORP, INC.
    NON-PERFORMING ASSETS
    (UNAUDITED)
    (Dollar Amounts in thousands)
           
      June 30, 2025   December 31, 2024
           
    Non-accrual loans:      
    Commercial and industrial $ 2,372     $ 293  
    Commercial real estate   8,414       6,000  
    Commercial real estate construction   –       –  
    Residential real estate   100       6  
    Home equity   828       –  
    Consumer   –       –  
    Total non-accrual loans   11,714       6,299  
    Accruing loans 90 days or more past due:      
    Commercial and industrial   –       –  
    Commercial real estate   –       –  
    Commercial real estate construction   –       –  
    Residential real estate   –       –  
    Home equity   –       –  
    Consumer   –       –  
    Total loans 90 days or more past due   –       –  
    Total non-performing loans   11,714       6,299  
    Other real estate owned   –       –  
    Other non-performing assets   –       –  
    Total non-performing assets $ 11,714     $ 6,299  
           
    Ratios:      
    Total non-performing loans to total loans   0.61 %     0.35 %
    Total non-performing loans to total assets   0.45 %     0.25 %
    Total non-performing assets to total assets   0.45 %     0.25 %
    Net-chargeoffs to total loans, YTD   0.01 %     0.48 %
           

    The MIL Network –

    July 31, 2025

  • MIL-OSI USA News: “Absolute Blockbuster”: New GDP Report Shows Explosive Growth in Trump’s Economy

    Source: US Whitehouse

    With U.S. economic growth surging in the second quarter, President Donald J. Trump has proven the so-called “experts” wrong once again as he presides over tame inflation, blue-collar wage growth, explosive job creation, and a “Made in America” boom.

    Here’s what they’re saying about today’s GDP report:

    Economist E.J. Antoni: “This GDP report, I mean, really, is an absolute blockbuster. It completely defies expectation. It is not only a good headline number, it has good internals, as well.”

    Economist Steve Moore: “This is an amazing number … We’re seeing lots of jobs. We’re seeing tame inflation. It is really a beautiful picture … It’s hard to see anything to complain about. I’m sure Democrats will find something they don’t like.”

    Bullseye Brief author Adam Johnson: “The GDP Price Index was only 2% and the expectation was 2.2%. In other words, we have an economy growing at 3%; we have inflation at 2%. That’s the best of both words, so I’m very positive on that report.”

    Job Creators Network CEO Alfredo Ortiz: “The U.S. economy grew by an annualized 3% in the second quarter of the year—yet another data point that supports an interest rate cut by the Fed. Trump’s three-legged stool is working: balancing trade, cutting taxes, and slashing regulations are creating an economic boom.”

    Navy Federal Credit Union Chief Economist Heather Long: “The word of the summer for the economy is ‘resilient.’”

    CNN’s Wolf Blitzer: “Welcome news for the U.S. economy.”

    CNN’s Matt Egan: “GDP, the broadest measure of the U.S. economy, it did rebound in the second quarter. Three percent — that is a solid number and it also beat expectations.”

    Benzinga’s Piero Cingari: “The U.S. economy roared back robustly in the second quarter, with gross domestic product rebounding well above expectations—offering President Donald Trump a timely economic victory to celebrate.”

    CNBC’s Joe Kernen: “This three percent, with the market at new highs and, really, we haven’t seen inflation go up … none of these ‘horrible things’ have happened.”

    CNBC’s Rick Santelli: “There’s no doubt that this is some success. We’re seeing more horsepower. We’re seeing better equities. Inflation? Inflation really hasn’t changed much in the last year or so.”

    Politico: “The surge in growth is a win for an administration that’s been battling widespread perceptions that Trump’s economic agenda is causing more harm than good … But for now, the GDP — the total value of all goods and services produced in the U.S. — is expanding at a healthy clip.”

    USA TODAY columnist Nicole Russell: “Thanks to President Donald Trump’s bold policies, it appears that the United States will avoid a recession this year − one that so many liberals were predicting only months ago. Will Democrats put politics aside and applaud as the American economy shows a strength and resilience that so many of them doubted? Probably not.”

    CBS News: “The number represents a surprising turnaround from the first three months of 2025 … The new data also shows consumers increased spending since the last quarter, with a growth of 1.4%, up from 0.5% from January to March.”

    ABC News: “The U.S. economy expanded more than expected as President Donald Trump’s tariffs took hold over recent months, federal government data on Wednesday showed … The reading amounted to sturdy economic growth, suggesting the economy has continued to avert a significant tariff-induced cooldown. A boost in consumer spending helped propel the economic surge.”

    CNBC: “The U.S. economy grew at a much stronger-than-expected pace in the second quarter, powered by a turnaround in the trade balance and renewed consumer strength.”

    Bloomberg: US Economy Rebounds With 3% GDP Growth

    The Wall Street Journal: “The U.S. economy grew at a 3.0% annual rate in the second quarter, exceeding expectations … Trump’s priorities, including tariffs and deportations, haven’t had a major [negative] economic impact thus far.”

    President Donald J. Trump: “2Q GDP JUST OUT: 3%, WAY BETTER THAN EXPECTED! ‘Too Late’ MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!”

    Vice President JD Vance: “Trump economy keeps defying the experts. Strong growth!”

    Secretary of the Treasury Scott Bessent: “Real GDP grew 3% in Q2, surpassing expectations. Consumer spending is up, and inflation is cooling. This is what an America First economy looks like, and the best is yet to come.”

    Secretary of Commerce Howard Lutnick: “GDP just surged to 3% and the Trump Economy has officially arrived. Biden’s first quarter is behind us, and growth is already accelerating. President Trump’s tariff policies have drawn historic investments and opened up global markets for U.S. businesses. Congratulations America: 3 percent today, and we’re just getting started.”

    Secretary of Labor Lori Chavez-DeRemer: “Thanks to @POTUS, working families are thriving and our economy is booming”

    National Economic Council Director Kevin Hassett: “There’s really strong growth, really strong income growth, we’ve got a huge reduction in government spending … Every single thing about this GDP release has shown strength.”

    Press Secretary Karoline Leavitt: “Today, GDP growth came in above market expectations, and yesterday, consumer confidence rose. Americans trust in President Trump’s America First economic agenda that continues to prove the so-called ‘experts’ wrong. President Trump has reduced America’s reliance on foreign products, boosted investment in the US, and created thousands of jobs — delivering on his promise to Make America Wealthy Again. The data is clear and there are no more excuses, now is the time for ‘too late’ Powell to cut the rates!”

    Counselor to the Secretary of the Treasury Joseph Lavorgna: “Q2 real #GDP expands 3.0%, above consensus expectations! Passage of the #OBBB and the CapEx comeback which is already underway will power a second half boom and beyond.”

    MIL OSI USA News –

    July 31, 2025

  • MIL-OSI USA News: Suspending Duty-Free De Minimis Treatment for All Countries

    Source: US Whitehouse

    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 the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code, it is hereby ordered:

    Section 1.  Background.  In Executive Order 14193 of February 1, 2025 (Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border), I declared a national emergency regarding the unusual and extraordinary threat to the safety and security of Americans, including the public health crisis caused by fentanyl and other illicit drugs and the failure of Canada to do more to arrest, seize, detain, or otherwise intercept drug trafficking organizations, other drug and human traffickers, criminals at large, and illicit drugs.  In that order, I determined that it was necessary and appropriate to, among other things, suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for articles described in section 2(a) and section 2(b) of that order.  In Executive Order 14226 of March 2, 2025 (Amendment to Duties To Address the Flow of Illicit Drugs Across Our Northern Border), I paused the suspension of duty-free de minimis treatment on such articles until I received a notification from the Secretary of Commerce (Secretary) that adequate systems are in place to fully and expeditiously process and collect duties for such articles that would otherwise be eligible for duty-free de minimis treatment.

    In Executive Order 14194 of February 1, 2025 (Imposing Duties To Address the Situation at Our Southern Border), I declared a national emergency regarding the unusual and extraordinary threat to the safety and security of Americans, including the public health crisis caused by fentanyl and other illicit drugs and the failure of Mexico to do more to arrest, seize, detain, or otherwise intercept drug trafficking organizations, other drug and human traffickers, criminals at large, and illicit drugs.  In that order, I determined that it was necessary and appropriate to, among other things, suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for articles described in section 2(a) of that order.  In Executive Order 14227 of March 2, 2025 (Amendment to Duties To Address the Situation at Our Southern Border), I paused the suspension of duty-free de minimis treatment on such articles until I received a notification from the Secretary that adequate systems are in place to fully and expeditiously process and collect duties for such articles that would otherwise be eligible for duty-free de minimis treatment.

    In Executive Order 14195 of February 1, 2025 (Imposing Duties To Address the Synthetic Opioid Supply Chain in the People’s Republic of China), I declared a national emergency regarding the unusual and extraordinary threat from the failure of the Government of the People’s Republic of China (PRC) to arrest, seize, detain, or otherwise intercept chemical precursor suppliers, money launderers, other transnational criminal organizations, criminals at large, and illicit drugs.  In that order, I determined that it was necessary and appropriate to, among other things, suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for articles described in section 2(a) of that order.  In Executive Order 14200 of February 5, 2025 (Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China), I paused the suspension of duty-free de minimis treatment for articles described in section 2(a) of Executive Order 14195 until I received a notification from the Secretary that adequate systems are in place to fully and expeditiously process and collect duties for such articles that would otherwise be eligible for duty-free de minimis treatment.

    I subsequently received notification from the Secretary that adequate systems have been established to process and collect duties for articles of the PRC and Hong Kong that would otherwise be eligible for duty-free de minimis treatment, and in Executive Order 14256 of April 2, 2025 (Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China as Applied to Low-Value Imports), I suspended duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for products of the PRC and Hong Kong described in section 2(a) of Executive Order 14195, as amended by Executive Order 14228 (Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China).  In addition, I instructed the Secretary to submit a report regarding the impact of Executive Order 14256 on American industries, consumers, and supply chains and to make recommendations for further action as he deems necessary.

    In Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits), I declared a national emergency with respect to underlying conditions indicated by the large and persistent annual U.S. goods trade deficits.  I also provided that duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) would remain available for products described in section 3(a) of that order until I received a notification by the Secretary that adequate systems are in place to fully and expeditiously process and collect duties applicable for articles otherwise eligible for duty-free de minimis treatment.

    The Secretary has notified me that adequate systems are now in place to fully and expeditiously process and collect duties for articles otherwise eligible for duty-free de minimis treatment on a global basis, including for products described in section 2(a) and section 2(b) of Executive Order 14193, section 2(a) of Executive Order 14194, and section 3(a) of Executive Order 14257.

    In my judgment, I determine that it is still necessary and appropriate to suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) in the manner and for the articles described below to deal with the unusual and extraordinary threats, which have their source in whole or substantial part outside the United States, to the national security, foreign policy, and economy of the United States. 

    I determine that it is necessary and appropriate to suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for certain Canadian goods to deal with the emergency declared in Executive Order 14193, as amended.  In my judgment, this suspension is necessary and appropriate to ensure that the tariffs imposed by Executive Order 14193, as amended, are effective in addressing the emergency declared in Executive Order 14193 and that the purpose of this action and other actions to address the emergency declared in Executive Order 14193 is not undermined.  For example, many shippers go to great lengths to evade law enforcement and hide illicit substances in imports that go through international commerce.  These shippers conceal the true contents of shipments sent to the United States through deceptive shipping practices.  Some of the techniques employed by these shippers to conceal the true contents of the shipments, the identity of the distributors, and the country of origin of the imports include the use of re-shippers in the United States, false invoices, fraudulent postage, and deceptive packaging.  The risks of evasion, deception, and illicit-drug importation are particularly high for low-value articles that have been eligible for duty-free de minimis treatment.

    Independently, I determine that it is necessary and appropriate to suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for certain Mexican goods to deal with the emergency declared in Executive Order 14194, as amended.  In my judgment, and for substantially similar reasons as above, this suspension is necessary and appropriate to ensure that the tariffs imposed by Executive Order 14194, as amended, are effective in addressing the emergency declared in Executive Order 14194 and that the purpose of this action and other actions to address the emergency declared in Executive Order 14194 is not undermined.

    Independently, and after considering information newly provided by the Secretary, among other things, I determine that it is still necessary and appropriate to continue to suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for certain goods of the PRC and Hong Kong to deal with the emergency declared in Executive Order 14195, as amended.  In my judgment, and for substantially similar reasons as above, this suspension is still necessary and appropriate to ensure that the tariffs imposed by Executive Order 14195, as amended, are effective in addressing the emergency declared in Executive Order 14195 and that the purpose of this action and other actions to address the emergency declared in Executive Order 14195 is not undermined.

    Also independently, I determine that it is necessary and appropriate to suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) on a global basis to deal with the emergency declared in Executive Order 14257, as amended.  In my judgment, this suspension is necessary and appropriate to ensure that the tariffs imposed by Executive Order 14257, as amended, are not evaded and are effective in addressing the emergency declared in Executive Order 14257 and that the purpose of this action and other actions to address the emergency declared in Executive Order 14257 is not undermined.

    Each of my determinations to suspend or continue to suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) are independent from the other.  And each determination is made only for the purpose to deal with the respective emergency and not for the purpose of dealing with another emergency.

    Sec. 2.  Suspension of Duty-Free de minimis Treatment.  (a)  The duty-free de minimis exemption provided under 19 U.S.C. 1321(a)(2)(C) shall no longer apply to any shipment of articles not covered by 50 U.S.C. 1702(b), regardless of value, country of origin, mode of transportation, or method of entry.  Accordingly, all such shipments, except those sent through the international postal network, shall be subject to all applicable duties, taxes, fees, exactions, and charges.  International postal shipments not covered by 50 U.S.C. 1702(b) shall be subject to the duty rates described in section 3 of this order.  Entry for all shipments that — prior to the effective date of this order — qualified for the de minimis exemption, except for shipments sent through the international postal network, shall be filed using an appropriate entry type in the Automated Commercial Environment (ACE) by a party qualified to make such entry.

    (b)  Shipments sent through the international postal network that would otherwise qualify for the de minimis exemption under 19 U.S.C. 1321(a)(2)(C) shall pass free of any duties except those specified in section 3 of this order, and without the preparation of an entry by U.S. Customs and Border Protection (CBP), until such time as CBP establishes a new entry process and publishes that process in the Federal Register.  

    Sec. 3.  Duty Rates for International Postal Shipments.  (a)  Transportation carriers delivering shipments to the United States through the international postal network, or other parties if qualified in lieu of such transportation carriers, must collect and remit duties to CBP using the methodology described in either subsection (b) or (c) of this section.  Each transportation carrier shall apply the same methodology across all covered shipments during any given period but may change its methodology no more than once per calendar month, or on another schedule determined to be appropriate by CBP, upon providing at least 24 hours’ notice to CBP.

    (b)  A duty equal to the effective IEEPA tariff rate applicable to the country of origin of the product shall be assessed on the value of each dutiable postal item (package) containing goods entered for consumption.

    (c)  A specific duty shall be assessed on each package containing goods entered for consumption, based on the effective IEEPA tariff rate applicable to the country of origin of the product as follows:

    (i)    Countries with an effective IEEPA tariff rate of less than 16 percent:  $80 per item;

    (ii)   Countries with an effective IEEPA tariff rate between 16 and 25 percent (inclusive):  $160 per item; and

    (iii)  Countries with an effective IEEPA rate above 25 percent:  $200 per item.

    (d)  For all international postal shipments subject to the methodologies described in subsections (b) and (c) of this section, the country of origin of the article must be declared to CBP.

    (e)  The specific duty methodology provided for in subsection (c) of this section shall be available for transportation carriers to select for a period of 6 months from the effective date of this order.  After such time all shipments to the United States through the international postal network must comply with the ad valorem duty methodology in subsection (b) of this section.

    (f)  Shipments sent through the international postal network that are subject to antidumping and countervailing duties or a quota must continue to be entered under an appropriate entry type in ACE to the extent required by all applicable regulations.

    Sec. 4.  Implementation.  (a)  The requirements and procedures established by sections 2 and 3 of this order shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 29, 2025.

    (b)  The provisions of this order supersede section 2 of Executive Order 14256, as amended, with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 29, 2025.

    (c)  Consistent with applicable law, the Secretary of Homeland Security is directed and authorized to take all necessary actions to implement and effectuate this order — including through temporary suspension or amendment of regulations or through notices in the Federal Register and by adopting rules, regulations, or guidance — and to employ all powers granted to the President by IEEPA as may be necessary to implement and effectuate this order.  The Secretary of Homeland Security, in consultation with the United States International Trade Commission (ITC), shall determine whether modifications to the Harmonized Tariff Schedule of the United States are necessary to effectuate this order and may make such modifications through notice in the Federal Register.  The Secretary of Homeland Security shall consult with the Secretary of State, the Secretary of the Treasury, the Attorney General, the Secretary of Commerce, the United States Trade Representative, the ITC, and the Postmaster General, where appropriate.  The Secretary of Homeland Security may, consistent with applicable law, redelegate any of these functions within the Department of Homeland Security.  All executive departments and agencies shall take all appropriate measures within their authority to implement this order.

    (d)  To ensure remittance of duties in accordance with this order, and to assure compliance with other legal requirements, CBP is authorized to require a basic importation and entry bond as described in 19 C.F.R. 113.62 for informal entries valued at or less than $2,500.  Any carrier that transports international postal shipments to the United States, by any mode of transportation, must have an international carrier bond as described in 19 C.F.R. 113.64 to ensure payment of the duties described in section 3 of this order.  CBP is authorized to ensure that the international carrier bonds required by this subsection are sufficient to account for the duties described in section 3 of this order.

    Sec. 5.  Definition.  As used in this order, the term “effective IEEPA tariff rate” means the total duty rate imposed on articles to address a national emergency declared under IEEPA, including Executive Order 14257, as amended; Executive Order 14193; as amended, Executive Order 14194, as amended; and Executive Order 14195, as amended, in accordance with the stacking rules set out in Executive Order 14289 of April 29, 2025 (Addressing Certain Tariffs on Imported Articles), and any subsequent order or proclamation addressing stacking or the applicability of tariffs imposed under IEEPA.

    Sec. 6.  Severability.  (a)  If any provision of this order or the application of any provision of this order to any individual or circumstance is held to be invalid, the remainder of this order and the application of its provisions to any other individuals or circumstances shall not be affected.

    (b)(i)  If the additional duties imposed under Executive Order 14193, as amended, Executive Order 14194, as amended, Executive Order 14195, as amended, or Executive Order 14257, as amended, are held to be invalid, the suspension of, or continued suspension of, duty-free de minimis treatment, as detailed in this order, shall not be affected.  Duty-free de minimis treatment would still be suspended, whether pursuant to my authority under 50 U.S.C. 1702(a)(1)(B) to “regulate . . . importation” or my authority under that provision to “nullify” or “void” “exercising any right . . . or privilege with respect to . . . any property,” in the way and to the extent explained in this order, to deal with the emergencies declared in Executive Order 14193, as amended, Executive Order 14194, as amended, Executive Order 14195, as amended, or Executive Order 14257, as amended.  Such suspensions are still necessary and appropriate to address the unusual and extraordinary threats to the national security, foreign policy, and economy of the United States.  Each determination to suspend or continue to suspend duty-free de minimis treatment is still independent from the other determination and made only with the purpose to deal with the respective emergency and not for the purpose of dealing with another emergency.  CBP is directed and authorized to take all necessary actions consistent with applicable law to implement and effectuate this order in line with this section ‑- including through temporary suspension or amendment of regulations or through notices in the Federal Register and by adopting rules, regulations, or guidance — and to employ all powers granted to the President by IEEPA as may be necessary to implement and effectuate this order in line with this section.

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                                 DONALD J. TRUMP

    THE WHITE HOUSE,

        July 30, 2025.

    MIL OSI USA News –

    July 31, 2025

  • MIL-OSI: Pathfinder Bancorp, Inc. Announces Second Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    OSWEGO, N.Y., July 30, 2025 (GLOBE NEWSWIRE) — Pathfinder Bancorp, Inc. (“Pathfinder” or the “Company”) (NASDAQ: PBHC) announced its financial results for the second quarter ended June 30, 2025.

    The holding company for Pathfinder Bank (“the Bank”) reported net income attributable to common shareholders of $31,000, or less than $0.01 per diluted share in the second quarter of 2025, compared to $3.0 million or $0.47 per diluted share in the first quarter of 2025 and $2.0 million or $0.32 per share in the second quarter of 2024.

    Second Quarter 2025 Highlights and Key Developments

    • The Company continued to undertake proactive measures in the second quarter to mitigate credit risk and enhance asset quality metrics for the long term. These included the July 2025 sale of $9.3 million in nonperforming and classified loans associated with one local commercial relationship for a pre-tax loss of $3.1 million recorded as a second quarter 2025 lower of cost or market adjustment to loans held for sale (“LOCOM HFS adjustment”), representing $0.40 per diluted share net of tax, as well as $2.6 million in net charge offs (“NCOs”) that are reflected in provision expense of $1.2 million.
    • Nonperforming loans declined to $11.7 million at period end, improving by 11.7% during the second quarter and 52.3% from June 30, 2024. Nonperforming loans also declined to 1.28% of total loans at period end, improving from 1.45% on March 31, 2025 and 2.76% on June 30, 2024.
    • Total deposits were $1.22 billion at period end, compared to $1.26 billion on March 31, 2025 and $1.10 billion on June 30, 2024. During the second quarter of 2025, total balances declined on reductions in higher-cost time and money market accounts, as well as regular municipal deposit seasonality. Core deposits grew to 78.47% of total deposits at period end from 78.31% on March 31, 2025 and 67.98% on June 30, 2024.
    • Total loans were $909.7 million at period end, reflecting the move of $3.2 million in balances to held-for-sale status for the July 2025 sale of nonperforming and classified loans, compared to $912.2 million on March 31, 2025 and $888.3 million on June 30, 2024. Commercial loans grew to $549.1 million or 60.4% of total loans at period end, compared to $542.7 million on March 31, 2025 and $527.2 million on June 30, 2024.
    • Net interest income was $10.8 million and net interest margin (“NIM”) was 3.11% in the second quarter of 2025. Linked quarter results reflected 2024 interest recovered from loans removed from nonaccrual status and income from prepayment fees, adding approximately $347,000 to net interest income of $11.4 million and 10 basis points to NIM of 3.31%. Second quarter 2024 net interest income was $9.5 million and NIM was 2.78%.
    • The efficiency ratio was 65.66%, compared to 67.19% in the linked quarter and 74.36% in the year-ago period. The efficiency ratio, which is not a financial metric under generally accepted accounting principles (“GAAP”), is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.
    • Pre-tax, pre-provision (“PTPP”) net income was $4.2 million, compared to $4.2 million in the linked quarter and $2.8 million in the year-ago period. PTPP net income, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding profitability without giving effect to income taxes and provision for credit losses.  

    “Pathfinder’s more exacting approach to proactive credit risk mitigation continues to be implemented, with measures taken to proactively address certain loans experiencing credit deterioration resulting in elevated charge offs and the sale of nonperforming and classified commercial loans associated with a single in-market commercial relationship,” said President and Chief Executive Officer James A. Dowd. “These steps were taken as part of our ongoing efforts to enhance Pathfinder’s asset quality and resilience over the long term.”

    Dowd added, “Growing our Central New York core deposit franchise remains an ongoing area of focus, as it continues to serve as a valuable source of low-cost funding for local, relationship-based lending opportunities with small- and middle-market businesses and consumers in our attractive regional markets.”

    Net Interest Income and Net Interest Margin
    Second quarter 2025 net interest income was $10.8 million, a decrease of $597,000, or 5.2%, from the first quarter of 2025. The decrease from the linked quarter was due in part to approximately $347,000 of first quarter 2025 net interest income attributed to 2024 interest recovered from loans removed from nonaccrual status and income from prepayment fees.

    A decrease in interest and dividend income of $259,000 from the linked quarter was attributed to average yield decreases of 22 basis points on loans, which benefited by 15 basis points from 2024 interest recovered from loans removed from nonaccrual status and income from prepayment fees in the first quarter of 2025. The interest and dividend income decrease was also attributed to 5 basis points on fed funds sold and interest-earning deposits, and 11 basis points on all interest-earning assets, partially offset by average yield increases on taxable and tax-exempt securities of 3 and 76 basis points, respectively. In addition, average loan balances declined by $4.9 million, while average balances of lower-yielding taxable securities increased by $18.5 million. The corresponding decrease in loan interest income and federal funds sold and interest-earning deposits was $566,000 and $21,000, respectively, partially offset by increases in taxable and tax-exempt securities income of $337,000 and $63,000, respectively. An increase in interest expense from the first quarter of 2025 of $338,000 was primarily attributed to a 5 basis point increase in the average cost of interest bearing deposits.

    Net interest margin was 3.11% in the second quarter of 2025 compared to 3.31% in the first quarter 2025. The decrease of 20 basis points reflected lower average loan yields and higher average interest bearing deposit costs in the second quarter of 2025, as well as approximately 10 basis points of first quarter 2025 margin attributed to 2024 interest recovered from loans removed from nonaccrual status and income from prepayment fees.

    Second quarter 2025 net interest income was $10.8 million, an increase of $1.3 million, or 14.1%, from the second quarter of 2024. An increase in interest and dividend income of $160,000 was primarily attributed to average yield increases of 11 basis points on loans and a $25.9 million increase in average loan balances. The corresponding increase in loan interest income was $617,000. A decrease in interest expense of $1.2 million was attributed to reductions in the average cost of interest bearing deposits and total interest-bearing liabilities of 40 basis points and 45 basis points, respectively, as well as reductions in brokered deposits and short-term borrowings expense associated with paydowns of brokered deposits and borrowings utilizing a portion of the low-cost liquidity provided by core deposit growth.

    Net interest margin was 3.11% in the second quarter of 2025 compared to 2.78% in the second quarter of 2024. The increase of 33 basis points reflected higher average loan yields and lower average deposit and borrowing costs in the second quarter of 2025, as compared to the year-ago period.

    Noninterest Income
    Second quarter 2025 noninterest income includes the $3.1 million LOCOM HFS adjustment, with an after-tax effect of $2.5 million or $0.40 per diluted share. Nonperforming and classified loans associated with one local commercial relationship dating back to 2013, with an original principal balance of $9.3 million and a June 30, 2025 principal balance of $6.3 million were sold in July 2025 for $3.2 million to an undisclosed financial buyer.

    Second quarter 2025 noninterest income totaled negative $1.5 million, reflecting the $3.1 million LOCOM HFS adjustment, and no longer includes contributions from the insurance agency business sold in October 2024. Noninterest income was $1.2 million in the linked quarter and $1.2 million, including $260,000 in insurance revenue, in the year-ago period.

    Compared to the linked quarter, second quarter 2025 noninterest income reflected increases of $179,000 in debit card interchange fees and $6,000 in service charges on deposit accounts, as well as a decrease of $6,000 in earnings and gain on bank owned life insurance (“BOLI”). Compared to the linked quarter, second quarter 2025 noninterest income also reflected increases of $202,000 in net unrealized gains on marketable equity securities, as well as decreases of $8,000 in net realized losses on sales and redemptions of investment securities and $4,000 in loan servicing fees.

    Compared to the year-ago period, second quarter 2025 noninterest income included increases of $50,000 in service charges on deposit accounts, as well as decreases of $11,000 in earnings and gain on BOLI, and $11,000 in debit card interchange fees. Compared to the year-ago period, second quarter 2025 noninterest income also reflected an increase of $559,000 in net unrealized gains on marketable equity securities, as well as decreases of $16,000 in net realized gains on sales and redemptions of investment securities and $15,000 in loan servicing fees.

    Noninterest Expense
    Noninterest expense totaled $8.1 million in the second quarter of 2025, including $595,000 in costs associated with the East Syracuse branch acquired in July 2024 and excluding costs for the insurance agency business sold in October 2024. Noninterest expense was $8.4 million in the linked quarter, including East Syracuse branch costs of $577,000, and $7.9 million in the year-ago period, including insurance agency costs of $232,000.

    Salaries and benefits were $4.5 million in the second quarter of 2025, in line with the linked quarter and increased $126,000 from the year-ago period. The increase from the second quarter of 2024 was primarily attributed to the July 2024 East Syracuse Branch Acquisition, which had $116,000 of total salary and benefit expenses in the second quarter of 2025. Excluding the East Syracuse branch, salaries and benefits increased $10,000 from the year-ago period. This increase from the second quarter of 2024 was primarily attributed to a $183,000 increase in stock-based compensation, partially offset by a $106,000 decrease in employee benefits, a $51,000 decrease in salaries and benefits expenses, and a $16,000 decrease in director compensation.  

    Building and occupancy was $1.2 million in the second quarter of 2025, decreasing $117,000 from the linked quarter and increasing $316,000 from the year-ago quarter. The decrease from the linked quarter reflected lower costs associated with building maintenance primarily related to snow removal. The increase from the first quarter of last year was primarily due to ongoing facilities-related costs associated with operating the East Syracuse branch acquired in July 2024.

    Data processing expense was $667,000 in the second quarter of 2025, in line with the linked quarter and increasing $117,000 from the year-ago period. The increase from the second quarter of 2024 was primarily attributed to the ongoing operations of the East Syracuse branch acquired in July 2024.

    No FDIC assessment expense was recorded in the second quarter of 2025, due to modest over-accruals in prior periods, compared to $229,000 and $228,000 in the linked and year-ago periods, respectively. The Company anticipates more normalized FDIC assessments in the future and expects this expense to range between $220,000 to $230,000 per quarter in the second half of 2025.

    Annualized noninterest expense represented 2.18% of average assets in the second quarter of 2025, compared to 2.33% and 2.19% in the linked and year-ago periods. The efficiency ratio was 65.66%, compared to 67.19% and 74.36% in the linked and year-ago periods, respectively. The efficiency ratio, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.

    Net Income
    For the second quarter of 2025, net income attributable to common shareholders was $31,000, or less than $0.01 per basic and diluted share. Linked quarter net income was $3.0 million, or $0.48 per basic share and $0.47 per diluted share. Second quarter 2024 net income totaled $2.0 million or $0.32 per basic and diluted share.

    Statement of Financial Condition
    As of June 30, 2025, the Company’s statement of financial condition reflects total assets of $1.51 billion, compared to $1.50 billion and $1.45 billion recorded on March 31, 2025 and June 30, 2024, respectively.

    Loans totaled $909.7 million on June 30, 2025, after $3.2 million in balances were moved to held-for-sale status for the July 2025 sale of nonperforming and classified loans, resulting in a decrease of $2.4 million or 0.3% from March 31, 2025. Total loans increased $21.5 million or 2.4% from one year prior. Consumer and residential loans totaled $362.1 million, decreasing 2.4% during the second quarter and increasing 0.2% from one year prior. Commercial loans totaled $549.1 million, increasing 1.2% during the second quarter and 4.1% from one year prior, despite the recent loan sale.

    With respect to liabilities, deposits totaled $1.22 billion on June 30, 2025, decreasing 3.4% on reductions in higher-cost time and money market accounts, as well as regular municipal deposit seasonality, during the second quarter and increasing 11.0% from one year prior. 

    Shareholders’ equity totaled $124.4 million on June 30, 2025, decreasing $483,000 or 0.4% in the second quarter and increasing $1.1 million or 0.9% from one year prior. The second quarter 2025 decrease primarily reflects a $599,000 decrease in retained earnings, a $426,000 decrease in accumulated other comprehensive loss (“AOCL”), and a $542,000 increase in additional paid in capital. Noncontrolling interest, previously included in equity on the Statements of Financial Condition, was eliminated in October 2024 upon the sale of the Company’s 51% insurance agency ownership interest.

    Asset Quality
    The Company’s asset quality metrics reflect ongoing efforts the Bank is undertaking as part of its commitment to continuously improve its credit risk management approach.

    Nonperforming loans were $11.7 million, or 1.28% of total loans on June 30, 2025, compared to $13.2 million or 1.45% on March 31, 2025 and $24.5 million or 2.76% on June 30, 2024. Continued improvement in nonperforming loans in the second quarter of 2025 primarily resulted from the recent sale of loans associated with one local commercial relationship dating to 2013.

    NCOs after recoveries were $2.6 million or an annualized 1.14% of average loans in the second quarter of 2025, with gross charge offs for consumer loans, purchased loan pools, and commercial loans, offsetting recoveries in each of these categories. NCOs were $340,000 or an annualized 0.15% of average loans in the linked quarter and $66,000 or 0.03% in the prior year period.

    Provision for credit loss expense was $1.2 million in the second quarter of 2025 primarily reflecting NCOs in the period, partially offset by reductions related to quantitative and qualitative factors in the Company’s reserve model. The provision was $457,000 and $290,000 in the linked and year-ago quarters, respectively.

    The Company believes it is sufficiently collateralized and reserved, with an Allowance for Credit Losses (“ACL”) of $16.0 million on June 30, 2025, compared to $17.4 million on March 31, 2025 and $16.9 million on June 30, 2024. As a percentage of total loans, ACL represented 1.76% on June 30, 2025, 1.91% on March 31, 2025, and 1.90% on June 30, 2024.

    Liquidity
    The Company has diligently ensured a strong liquidity profile as of June 30, 2025 to meet its ongoing financial obligations. The Bank’s liquidity management, as evaluated by its cash reserves and operational cash flows from loan repayments and investment securities, remains robust and is effectively managed by the institution’s leadership.

    The Bank’s analysis indicates that expected cash inflows from loans and investment securities are more than sufficient to meet all projected financial obligations. Total deposits were $1.22 billion on June 30, 2025, compared to $1.26 billion on March 31, 2025 and $1.10 billion on June 30, 2024. Decreases in total deposits primarily reflect reductions in higher-cost time and money market accounts, as well as regular municipal deposit seasonality. Core deposits grew to 78.47% of total deposits on June 30, 2025, compared to 78.31% on March 31, 2025 and 67.98% on June 30, 2024. The Bank continues to implement strategic initiatives to enhance its core deposit franchise, including targeted marketing campaigns and customer engagement programs aimed at deepening banking relationships and enhancing deposit stability.

    On June 30, 2025, Pathfinder Bancorp had an available additional funding capacity of $124.5 million with the Federal Home Loan Bank of New York, which complements its liquidity reserves. Moreover, the Bank maintains additional unused credit lines totaling $46.5 million, which provide a buffer for additional funding needs. These facilities, including access to the Federal Reserve’s Discount Window, are part of a comprehensive liquidity strategy that ensures flexibility and readiness to respond to any funding requirements.

    Cash Dividend Declared
    On June 30, 2025, Pathfinder’s Board of Directors declared a cash dividend of $0.10 per share for holders of both voting common and non-voting common stock.

    In addition, this dividend also extends to the notional shares of the Company’s warrants. Shareholders registered by July 18, 2025 will be eligible for the dividend, which is scheduled for disbursement on August 8, 2025. This distribution aligns with Pathfinder Bancorp’s philosophy of consistent and reliable delivery of shareholder value.

    Evaluating the Company’s market performance, the closing stock price as of June 30, 2025 stood at $15.34 per share. This positions the annualized dividend yield at 2.61%.

    About Pathfinder Bancorp, Inc.
    Pathfinder Bancorp, Inc. (NASDAQ: PBHC) is the bank holding company for Pathfinder Bank, which serves Central New York customers throughout Oswego, Syracuse, and their neighboring communities. Strategically located branches, as well as diversified consumer, mortgage, and commercial loan portfolios, reflect the state-chartered Bank’s commitment to in-market relationships and local customer service. The Company also offers investment services to individuals and businesses. More information is available at pathfinderbank.com and ir.pathfinderbank.com.

    Forward-Looking Statements
    Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are based on current beliefs and expectations of the Company’s and the Bank’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s and the Bank’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to: risks related to the real estate and economic environment, particularly in the market areas in which the Company and the Bank operate; fiscal and monetary policies of the U.S. Government; inflation; changes in government regulations affecting financial institutions, including regulatory compliance costs and capital requirements; fluctuations in the adequacy of the allowance for credit losses; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; the risk that the Company may not be successful in the implementation of its business strategy; changes in prevailing interest rates; credit risk management; asset-liability management; and other risks described in the Company’s filings with the Securities and Exchange Commission, which are available at the SEC’s website, www.sec.gov. 

    This release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a registrant’s historical or future financial performance, financial position, or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet, or statement of cash flows (or equivalent statements) of the registrant; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, the Company has provided reconciliations within the release of the non-GAAP financial measures to the most directly comparable GAAP financial measure.

    PATHFINDER BANCORP, INC.                              
    Selected Financial Information (Unaudited)                              
    (Amounts in thousands, except per share amounts)                              
                                   
        2025     2024  
    SELECTED BALANCE SHEET DATA:   June 30,     March 31,     December 31,     September 30,     June 30,  
    ASSETS:                              
    Cash and due from banks   $ 16,183     $ 18,606     $ 13,963     $ 18,923     $ 12,022  
    Interest-earning deposits     15,292       32,862       17,609       16,401       19,797  
    Total cash and cash equivalents     31,475       51,468       31,572       35,324       31,819  
    Available-for-sale securities, at fair value     300,951       284,051       269,331       271,977       274,977  
    Held-to-maturity securities, at amortized cost     157,892       155,704       158,683       161,385       166,271  
    Marketable equity securities, at fair value     4,881       4,401       4,076       3,872       3,793  
    Federal Home Loan Bank stock, at cost     5,278       2,906       4,590       5,401       8,702  
    Loans held-for-sale     3,161       –       –       –       –  
    Loans, net of deferred fees     909,723       912,150       918,986       921,660       888,263  
    Less: Allowance for credit losses     15,983       17,407       17,243       17,274       16,892  
    Loans receivable, net     893,740       894,743       901,743       904,386       871,371  
    Premises and equipment, net     19,047       19,233       19,009       18,989       18,878  
    Assets held-for-sale     –       –       –       –       3,042  
    Operating lease right-of-use assets     1,115       1,356       1,391       1,425       1,459  
    Finance lease right-of-use assets     16,280       16,478       16,676       16,873       4,004  
    Accrued interest receivable     6,889       6,748       6,881       6,806       7,076  
    Foreclosed real estate     83       –       –       –       60  
    Intangible assets, net     5,675       5,832       5,989       6,217       76  
    Goodwill     5,056       5,056       5,056       5,752       4,536  
    Bank owned life insurance     31,045       24,889       24,727       24,560       24,967  
    Other assets     22,551       22,472       25,150       20,159       25,180  
    Total assets   $ 1,505,119     $ 1,495,337     $ 1,474,874     $ 1,483,126     $ 1,446,211  
                                   
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                              
    Deposits:                              
    Interest-bearing deposits   $ 1,030,155     $ 1,061,166     $ 990,805     $ 986,103     $ 932,132  
    Noninterest-bearing deposits     191,732       203,314       213,719       210,110       169,145  
    Total deposits     1,221,887       1,264,480       1,204,524       1,196,213       1,101,277  
    Short-term borrowings     75,500       27,000       61,000       60,315       127,577  
    Long-term borrowings     20,977       17,628       27,068       39,769       45,869  
    Subordinated debt     30,206       30,156       30,107       30,057       30,008  
    Accrued interest payable     813       844       546       236       2,092  
    Operating lease liabilities     1,313       1,560       1,591       1,621       1,652  
    Finance lease liabilities     16,566       16,655       16,745       16,829       4,359  
    Other liabilities     13,444       12,118       11,810       16,986       9,203  
    Total liabilities     1,380,706       1,370,441       1,353,391       1,362,026       1,322,037  
    Shareholders’ equity:                              
    Voting common stock shares issued and outstanding     4,788,109       4,761,182       4,745,366       4,719,788       4,719,788  
    Voting common stock   $ 48     $ 48     $ 47     $ 47     $ 47  
    Non-voting common stock     14       14       14       14       14  
    Additional paid in capital     53,645       53,103       52,750       53,231       53,182  
    Retained earnings     79,564       80,163       77,816       73,670       78,936  
    Accumulated other comprehensive loss     (8,858 )     (8,432 )     (9,144 )     (6,716 )     (8,786 )
    Unearned ESOP shares     –       –       –       –       (45 )
    Total Pathfinder Bancorp, Inc. shareholders’ equity     124,413       124,896       121,483       120,246       123,348  
    Noncontrolling interest     –       –       –       854       826  
    Total equity     124,413       124,896       121,483       121,100       124,174  
    Total liabilities and shareholders’ equity   $ 1,505,119     $ 1,495,337     $ 1,474,874     $ 1,483,126     $ 1,446,211  
                                             

    The above information is unaudited and preliminary, based on the Company’s data available at the time of presentation.

        Six Months Ended June 30,     2025     2024  
    SELECTED INCOME STATEMENT DATA:   2025     2024     Q2     Q1     Q4     Q3     Q2  
    Interest and dividend income:                                          
    Loans, including fees   $ 26,778     $ 24,757     $ 13,106     $ 13,672     $ 13,523     $ 14,425     $ 12,489  
    Debt securities:                                          
    Taxable     10,707       11,343       5,522       5,185       5,312       5,664       5,736  
    Tax-exempt     867       1,006       465       402       445       469       498  
    Dividends     114       307       21       93       164       149       178  
    Federal funds sold and interest-earning deposits     157       219       68       89       82       492       121  
    Total interest and dividend income     38,623       37,632       19,182       19,441       19,526       21,199       19,022  
    Interest expense:                                          
    Interest on deposits     14,263       15,037       7,318       6,945       7,823       7,633       7,626  
    Interest on short-term borrowings     1,040       2,340       495       545       700       1,136       1,226  
    Interest on long-term borrowings     137       395       72       65       136       202       201  
    Interest on subordinated debt     958       980       483       475       490       496       489  
    Total interest expense     16,398       18,752       8,368       8,030       9,149       9,467       9,542  
    Net interest income     22,225       18,880       10,814       11,411       10,377       11,732       9,480  
    Provision for (benefit from) credit losses:                                          
    Loans     1,677       1,014       1,173       504       988       9,104       304  
    Held-to-maturity securities     5       (59 )     5       –       (5 )     (31 )     (74 )
    Unfunded commitments     (28 )     61       19       (47 )     5       (104 )     60  
    Total provision for credit losses     1,654       1,016       1,197       457       988       8,969       290  
    Net interest income after provision for credit losses     20,571       17,864       9,617       10,954       9,389       2,763       9,190  
    Noninterest income:                                          
    Service charges on deposit accounts     754       639       380       374       405       392       330  
    Earnings and gain on bank owned life insurance     318       324       156       162       169       361       167  
    Loan servicing fees     198       200       97       101       96       79       112  
    Net realized (losses) gains on sales and redemptions of investment securities     (8 )     (132 )     –       (8 )     249       (188 )     16  
    Gain on asset sale 1 & 2     –       –       –       –       3,169       –       –  
    Net unrealized gains (losses) on marketable equity securities     638       (31 )     420       218       166       62       (139 )
    Gains on sales of loans and foreclosed real estate     148       58       83       65       39       90       40  
    LOCOM HFS adjustment 3     (3,064 )     –       (3,064 )     –       –       –       –  
    Loss on sale of premises and equipment     –       –       –       –       –       (36 )     –  
    Debit card interchange fees     181       310       180       1       265       300       191  
    Insurance agency revenue 1     –       657       –       –       49       367       260  
    Other charges, commissions & fees     514       923       230       284       299       280       234  
    Total noninterest (loss) income     (321 )     2,948       (1,518 )     1,197       4,906       1,707       1,211  
    Noninterest expense:                                          
    Salaries and employee benefits     8,975       8,728       4,525       4,450       4,123       4,959       4,399  
    Building and occupancy     2,577       1,730       1,230       1,347       1,254       1,134       914  
    Data processing     1,333       1,078       667       666       721       672       550  
    Professional and other services     1,384       1,258       778       606       608       1,820       696  
    Advertising     218       221       77       141       218       165       116  
    FDIC assessments     229       457       –       229       231       228       228  
    Audits and exams     174       293       60       114       123       123       123  
    Amortization expense     314       8       157       157       27       124       5  
    Insurance agency expense 1     –       517       –       –       456       308       232  
    Community service activities     39       91       28       11       19       20       39  
    Foreclosed real estate expenses     50       55       29       21       20       27       30  
    Other expenses     1,201       1,178       510       691       744       679       576  
    Total noninterest expense     16,494       15,614       8,061       8,433       8,544       10,259       7,908  
    Income (loss) before provision for income taxes     3,756       5,198       38       3,718       5,751       (5,789 )     2,493  
    Provision (benefit) for income taxes     751       1,013       7       744       492       (1,173 )     481  
    Net income (loss) attributable to noncontrolling interest and Pathfinder Bancorp, Inc.     3,005       4,185       31       2,974       5,259       (4,616 )     2,012  
    Net income attributable to noncontrolling interest 1     –       65       –       –       1,352       28       12  
    Net income (loss) attributable to Pathfinder Bancorp Inc.   $ 3,005     $ 4,120     $ 31     $ 2,974     $ 3,907     $ (4,644 )   $ 2,000  
    Voting Earnings per common share – basic   $ 0.48     $ 0.66     $ –     $ 0.48     $ 0.63     $ (0.75 )   $ 0.32  
    Voting Earnings per common share – diluted 4   $ 0.47     $ 0.66     $ –     $ 0.47     $ 0.63     $ (0.75 )   $ 0.32  
    Series A Non-Voting Earnings per common share- basic   $ 0.48     $ 0.66     $ –     $ 0.48     $ 0.63     $ (0.75 )   $ 0.32  
    Series A Non-Voting Earnings per common share- diluted 4   $ 0.47     $ 0.66     $ –     $ 0.47     $ 0.63     $ (0.75 )   $ 0.32  
    Dividends per common share (Voting and Series A Non-Voting)   $ 0.20     $ 0.20     $ 0.10     $ 0.10     $ 0.10     $ 0.10     $ 0.10  
                                                             

    1 Although the Company owned 51% of its membership interest in FitzGibbons Agency, LLC (“Agency”) the Company is required to consolidate 100% of the Agency within the consolidated financial statements.  The Company sold its 51% membership interest in the Agency in October 2024.
    2 The $3,169,000 consolidated gain on asset sale equals $1,616,000 associated with the Company’s 51% interest in the Agency plus $1,553,000 associated with the 49% noncontrolling interest.
    3 The loss reflects a valuation adjustment “Lower-of-cost-or-market” adjustment on loans held for sale to their estimated market value based on active sale negotiations.
    4 Diluted earnings per share for the first quarter of 2025 has been updated to $0.47, from the $0.41 reported previously.

    The above information is unaudited and preliminary, based on the Company’s data available at the time of presentation.

        Six Months Ended June 30,     2025     2024  
    FINANCIAL HIGHLIGHTS:   2025     2024     Q2     Q1     Q4     Q3     Q2  
    Selected Ratios:                                          
    Return on average assets     0.41 %     0.58 %     0.01 %     0.81 %     1.07 %     -1.25 %     0.56 %
    Return on average common equity     4.83 %     6.74 %     0.10 %     9.64 %     12.85 %     -14.79 %     6.49 %
    Return on average equity     4.83 %     6.74 %     0.10 %     9.64 %     12.85 %     -14.79 %     6.49 %
    Return on average tangible common equity 1     5.34 %     7.05 %     0.11 %     10.52 %     14.17 %     -15.28 %     6.78 %
    Net interest margin     3.21 %     2.77 %     3.11 %     3.31 %     3.02 %     3.34 %     2.78 %
    Loans / deposits     74.45 %     80.66 %     74.45 %     72.14 %     76.29 %     77.05 %     80.66 %
    Core deposits/deposits 2     78.47 %     67.98 %     78.47 %     78.31 %     76.86 %     77.45 %     67.98 %
    Annualized non-interest expense / average assets     2.26 %     2.20 %     2.18 %     2.33 %     2.33 %     2.75 %     2.19 %
    Commercial real estate / risk-based capital 3     183.34 %     169.73 %     183.34 %     182.62 %     186.73 %     189.47 %     169.73 %
    Efficiency ratio 1     66.43 %     71.29 %     65.66 %     67.19 %     72.25 %     75.78 %     74.36 %
                                               
    Other Selected Data:                                          
    Average yield on loans     5.86 %     5.56 %     5.75 %     5.97 %     5.87 %     6.31 %     5.64 %
    Average cost of interest bearing deposits     2.78 %     3.14 %     2.81 %     2.76 %     3.12 %     3.11 %     3.21 %
    Average cost of total deposits, including non-interest bearing     2.33 %     2.67 %     2.37 %     2.29 %     2.59 %     2.59 %     2.72 %
    Deposits/branch 4   $ 101,824     $ 100,116     $ 101,824     $ 105,373     $ 100,377     $ 99,684     $ 100,116  
    Pre-tax, pre-provision net income 1   $ 8,334     $ 6,288     $ 4,216     $ 4,183     $ 3,321     $ 3,368     $ 2,767  
    Total revenue 1   $ 24,828     $ 21,902     $ 12,277     $ 12,616     $ 11,865     $ 13,627     $ 10,675  
                                               
    Share and Per Share Data:                                          
    Cash dividends per share   $ 0.20     $ 0.20     $ 0.10     $ 0.10     $ 0.10     $ 0.10     $ 0.10  
    Book value per common share   $ 20.17     $ 20.22     $ 20.17     $ 20.33     $ 19.83     $ 19.71     $ 20.22  
    Tangible book value per common share 1   $ 18.43     $ 19.46     $ 18.43     $ 18.56     $ 18.03     $ 17.75     $ 19.46  
    Basic and diluted weighted average shares outstanding – Voting     4,759       4,704       4,769       4,749       4,733       4,714       4,708  
    Basic earnings per share – Voting  5   $ 0.48     $ 0.66     $ –     $ 0.48     $ 0.63     $ (0.75 )   $ 0.32  
    Diluted earnings per share – Voting  5 & 6   $ 0.47     $ 0.66     $ –     $ 0.47     $ 0.63     $ (0.75 )   $ 0.32  
    Basic and diluted weighted average shares outstanding – Series A Non-Voting     1,380       1,380       1,380       1,380       1,380       1,380       1,380  
    Basic earnings per share – Series A Non-Voting  5   $ 0.48     $ 0.66     $ –     $ 0.48     $ 0.63     $ (0.75 )   $ 0.32  
    Diluted earnings per share – Series A Non-Voting  5 & 6   $ 0.47     $ 0.66     $ –     $ 0.47     $ 0.63     $ (0.75 )   $ 0.32  
    Common shares outstanding at period end     6,168       6,100       6,168       6,141       6,126       6,100       6,100  
                                               
    Pathfinder Bancorp, Inc. Capital Ratios:                                          
    Company tangible common equity to tangible assets 1     7.61 %     8.24 %     7.61 %     7.68 %     7.54 %     7.36 %     8.24 %
    Company Total Core Capital (to Risk-Weighted Assets)     15.97 %     16.19 %     15.97 %     15.89 %     15.66 %     15.55 %     16.19 %
    Company Tier 1 Capital (to Risk-Weighted Assets)     12.31 %     12.31 %     12.31 %     12.24 %     12.00 %     11.84 %     12.31 %
    Company Tier 1 Common Equity (to Risk-Weighted Assets)     11.81 %     11.83 %     11.81 %     11.75 %     11.51 %     11.33 %     11.83 %
    Company Tier 1 Capital (to Assets)     8.75 %     9.16 %     8.75 %     8.82 %     8.64 %     8.29 %     9.16 %
                                               
    Pathfinder Bank Capital Ratios:                                          
    Bank Total Core Capital (to Risk-Weighted Assets)     14.87 %     16.04 %     14.87 %     14.86 %     14.65 %     14.52 %     16.04 %
    Bank Tier 1 Capital (to Risk-Weighted Assets)     13.62 %     14.79 %     13.62 %     13.61 %     13.40 %     13.26 %     14.79 %
    Bank Tier 1 Common Equity (to Risk-Weighted Assets)     13.62 %     14.79 %     13.62 %     13.61 %     13.40 %     13.26 %     14.79 %
    Bank Tier 1 Capital (to Assets)     9.68 %     10.30 %     9.68 %     9.80 %     9.64 %     9.13 %     10.30 %
                                                             

    1 Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
    2 Non-brokered deposits excluding certificates of deposit of $250,000 or more.
    3 Construction and development, multifamily, and non-owner occupied CRE loans as a percentage of Pathfinder Bank total capital.
    4 Includes 11 full-service branches and one motor bank for periods after June 30, 2024. Includes 10 full-service branches and one motor bank for all periods prior.
    5 Basic and diluted earnings per share are calculated based upon the two-class method. Weighted average shares outstanding do not include unallocated ESOP shares.
    6 Diluted earnings per share for the first quarter of 2025 has been updated to $0.47, from the $0.41 reported previously.

    The above information is unaudited and preliminary, based on the Company’s data available at the time of presentation.

        Six Months Ended June 30,     2025     2024  
    ASSET QUALITY:   2025     2024     Q2     Q1     Q4     Q3     Q2  
    Total loan charge-offs   $ 3,352     $ 180     $ 2,844     $ 508     $ 1,191     $ 8,812     $ 112  
    Total recoveries     415       84       247       168       171       90       46  
    Net loan charge-offs     2,937       96       2,597       340       1,020       8,722       66  
    Allowance for credit losses at period end     15,983       16,892       15,983       17,407       17,243       17,274       16,892  
    Nonperforming loans at period end     11,689       24,490       11,689       13,232       22,084       16,170       24,490  
    Nonperforming assets at period end   $ 11,772     $ 24,550     $ 11,772     $ 13,232     $ 22,084     $ 16,170     $ 24,550  
    Annualized net loan charge-offs to average loans     0.64 %     0.02 %     1.14 %     0.15 %     0.44 %     3.82 %     0.03 %
    Allowance for credit losses to period end loans     1.76 %     1.90 %     1.76 %     1.91 %     1.88 %     1.87 %     1.90 %
    Allowance for credit losses to nonperforming loans     136.74 %     68.98 %     136.74 %     131.55 %     78.08 %     106.83 %     68.98 %
    Nonperforming loans to period end loans     1.28 %     2.76 %     1.28 %     1.45 %     2.40 %     1.75 %     2.76 %
    Nonperforming assets to period end assets     0.78 %     1.70 %     0.78 %     0.88 %     1.50 %     1.09 %     1.70 %
                                                             
        2025     2024  
    LOAN COMPOSITION:   June 30,     March 31,     December 31,     September 30,     June 30,  
    1-4 family first-lien residential mortgages   $ 240,833     $ 243,854     $ 251,373     $ 255,235     $ 250,106  
    Residential construction     3,520       3,162       4,864       4,077       309  
    Commercial real estate     381,575       381,479       377,619       378,805       370,361  
    Commercial lines of credit     75,487       65,074       67,602       64,672       62,711  
    Other commercial and industrial     85,578       91,644       89,800       88,247       90,813  
    Paycheck protection program loans     85       96       113       125       136  
    Tax exempt commercial loans     6,349       4,446       4,544       2,658       3,228  
    Home equity and junior liens     49,339       52,315       51,948       52,709       35,821  
    Other consumer     68,439       71,681       72,710       76,703       75,195  
    Subtotal loans     911,205       913,751       920,573       923,231       888,680  
    Deferred loan fees     (1,482 )     (1,601 )     (1,587 )     (1,571 )     (417 )
    Total loans   $ 909,723     $ 912,150     $ 918,986     $ 921,660     $ 888,263  
                                             
        2025     2024  
    DEPOSIT COMPOSITION:   June 30,     March 31,     December 31,     September 30,     June 30,  
    Savings accounts   $ 129,252     $ 129,898     $ 128,753     $ 129,053     $ 106,048  
    Time accounts     341,063       349,673       360,716       352,729       368,262  
    Time accounts in excess of $250,000     144,355       149,922       142,473       140,181       117,021  
    Money management accounts     9,902       10,774       11,583       11,520       12,154  
    MMDA accounts     278,919       306,281       239,016       250,007       193,915  
    Demand deposit interest-bearing     120,083       109,941       101,080       97,344       128,168  
    Demand deposit noninterest-bearing     191,732       203,314       213,719       210,110       169,145  
    Mortgage escrow funds     6,581       4,677       7,184       5,269       6,564  
    Total deposits   $ 1,221,887     $ 1,264,480     $ 1,204,524     $ 1,196,213     $ 1,101,277  
                                             

    The above information is unaudited and preliminary, based on the Company’s data available at the time of presentation.

        Six Months Ended June 30,     2025       2024  
    SELECTED AVERAGE BALANCES:   2025     2024     Q2     Q1     Q2  
    Interest-earning assets:                              
    Loans   $ 913,658     $ 889,988     $ 911,347     $ 916,207     $ 885,384  
    Taxable investment securities     425,841       433,156       435,022       416,558       434,572  
    Tax-exempt investment securities     34,394       29,053       34,314       34,475       28,944  
    Fed funds sold and interest-earning deposits     11,497       8,669       10,070       12,939       13,387  
    Total interest-earning assets     1,385,390       1,360,866       1,390,753       1,380,179       1,362,287  
    Noninterest-earning assets:                              
    Other assets     116,590       96,772       118,280       114,882       98,746  
    Allowance for credit losses     (17,377 )     (16,498 )     (17,342 )     (17,413 )     (16,905 )
    Net unrealized losses on available-for-sale securities     (10,395 )     (10,701 )     (10,838 )     (9,947 )     (10,248 )
    Total assets   $ 1,474,208     $ 1,430,439     $ 1,480,853     $ 1,467,701     $ 1,433,880  
    Interest-bearing liabilities:                              
    NOW accounts   $ 112,720     $ 97,213     $ 113,994     $ 111,643     $ 92,918  
    Money management accounts     10,602       11,759       10,302       10,906       12,076  
    MMDA accounts     277,664       212,693       298,907       256,186       214,364  
    Savings and club accounts     129,752       110,119       129,736       129,769       107,558  
    Time deposits     494,200       525,767       489,490       498,963       524,276  
    Subordinated loans     30,149       29,954       30,173       30,123       29,977  
    Borrowings     66,165       133,894       61,803       70,575       141,067  
    Total interest-bearing liabilities     1,121,252       1,121,399       1,134,405       1,108,165       1,122,236  
    Noninterest-bearing liabilities:                              
    Demand deposits     199,123       170,313       192,186       206,137       171,135  
    Other liabilities     29,497       16,542       29,037       29,961       17,298  
    Total liabilities     1,349,872       1,308,254       1,355,628       1,344,263       1,310,669  
    Shareholders’ equity     124,336       122,185       125,225       123,438       123,211  
    Total liabilities & shareholders’ equity   $ 1,474,208     $ 1,430,439     $ 1,480,853     $ 1,467,701     $ 1,433,880  
                                             
        Six Months Ended June 30,     2025       2024  
    SELECTED AVERAGE YIELDS:   2025     2024     Q2     Q1     Q2  
    Interest-earning assets:                              
    Loans     5.86 %     5.56 %     5.75 %     5.97 %     5.64 %
    Taxable investment securities     5.08 %     5.38 %     5.10 %     5.07 %     5.44 %
    Tax-exempt investment securities     5.04 %     6.93 %     5.42 %     4.66 %     6.88 %
    Fed funds sold and interest-earning deposits     2.73 %     5.05 %     2.70 %     2.75 %     3.62 %
    Total interest-earning assets     5.58 %     5.53 %     5.52 %     5.63 %     5.59 %
    Interest-bearing liabilities:                              
    NOW accounts     1.16 %     1.08 %     1.25 %     1.07 %     1.14 %
    Money management accounts     0.09 %     0.11 %     0.12 %     0.11 %     0.10 %
    MMDA accounts     3.16 %     3.70 %     3.25 %     3.06 %     3.74 %
    Savings and club accounts     0.25 %     0.26 %     0.25 %     0.25 %     0.26 %
    Time deposits     3.66 %     3.97 %     3.64 %     3.69 %     4.03 %
    Subordinated loans     6.36 %     6.54 %     6.40 %     6.31 %     6.53 %
    Borrowings     3.56 %     4.09 %     3.67 %     3.46 %     4.05 %
    Total interest-bearing liabilities     2.92 %     3.34 %     2.95 %     2.90 %     3.40 %
    Net interest rate spread     2.66 %     2.19 %     2.57 %     2.73 %     2.19 %
    Net interest margin     3.21 %     2.77 %     3.11 %     3.31 %     2.78 %
    Ratio of average interest-earning assets to average interest-bearing liabilities     123.56 %     121.35 %     122.60 %     124.55 %     121.39 %
                                             

    The above information is unaudited and preliminary based on the Company’s data available at the time of presentation.

        Six Months Ended June 30,     2025     2024  
    NON-GAAP RECONCILIATIONS:   2025     2024     Q2     Q1     Q4     Q3     Q2  
    Tangible book value per common share:                                          
    Total equity               $ 124,413     $ 124,896     $ 121,483     $ 120,246     $ 123,348  
    Intangible assets                 (10,731 )     (10,888 )     (11,045 )     (11,969 )     (4,612 )
    Tangible common equity (non-GAAP)                 113,682       114,008       110,438       108,277       118,736  
    Common shares outstanding                 6,168       6,144       6,126       6,100       6,100  
    Tangible book value per common share (non-GAAP)               $ 18.43     $ 18.56     $ 18.03     $ 17.75     $ 19.46  
    Tangible common equity to tangible assets:                                          
    Tangible common equity (non-GAAP)               $ 113,682     $ 114,008     $ 110,438     $ 108,277     $ 118,736  
    Tangible assets                 1,494,388       1,484,449       1,463,829       1,471,157       1,441,599  
    Tangible common equity to tangible assets ratio (non-GAAP)                 7.61 %     7.68 %     7.54 %     7.36 %     8.24 %
    Return on average tangible common equity:                                          
    Average shareholders’ equity   $ 124,336     $ 122,185     $ 125,225     $ 123,438     $ 121,589     $ 125,626     $ 123,211  
    Average intangible assets     10,912       4,617       10,834       10,991       11,907       4,691       4,614  
    Average tangible equity (non-GAAP)     113,424       117,568       114,391       112,447       109,682       120,935       118,597  
    Net income (loss)     3,005       4,120       31       2,974       3,907       (4,644 )     2,000  
    Net income (loss), annualized   $ 6,060     $ 8,285     $ 124     $ 11,831     $ 15,543     $ (18,475 )   $ 8,044  
    Return on average tangible common equity (non-GAAP) 1     5.34 %     7.05 %     0.11 %     10.52 %     14.17 %     -15.28 %     6.78 %
    Revenue, pre-tax, pre-provision net income, and efficiency ratio:                                          
    Net interest income   $ 22,225     $ 18,880     $ 10,814     $ 11,411     $ 10,377     $ 11,732     $ 9,480  
    Total noninterest income     (321 )     2,948       (1,518 )     1,197       4,906       1,707       1,211  
    Net realized (gains) losses on sales and redemptions of investment securities     (8 )     (132 )     –       (8 )     249       (188 )     16  
    Gains on sales of loans and foreclosed real estate     148       58       83       65       39       90       40  
    LOCOM HFS adjustment 2     (3,064 )     –       (3,064 )     –       –       –       –  
    Gain on asset sale     –       –       –       –       3,169       –       –  
    Revenue (non-GAAP) 3     24,828       21,902       12,277       12,551       11,826       13,537       10,635  
    Total non-interest expense     16,494       15,614       8,061       8,433       8,544       10,259       7,908  
    Pre-tax, pre-provision net income (non-GAAP) 4   $ 8,334     $ 6,288     $ 4,216     $ 4,183     $ 3,321     $ 3,368     $ 2,767  
    Efficiency ratio (non-GAAP) 5     66.43 %     71.29 %     65.66 %     67.19 %     72.25 %     75.78 %     74.36 %
                                                             

    1 Return on average tangible common equity equals annualized net income (loss) divided by average tangible equity
    2 The loss reflects a valuation adjustment “Lower-of-cost-or-market” adjustment on loans held for sale to the estimated market value based on sale negotiation terms.
    3 Revenue equals net interest income plus total noninterest income less net realized gains or losses on sales and redemptions of investment securities, sales of loans and foreclosed real estate, and a gain on the October 2024 sale of the Company’s insurance agency asset
    4 Pre-tax, pre-provision net income equals revenue less total non-interest expense
    5 Efficiency ratio equals noninterest expense divided by revenue

    The above information is unaudited and preliminary based on the Company’s data available at the time of presentation.

    Investor/Media Contacts
    James A. Dowd, President, CEO
    Justin K. Bigham, Senior Vice President, CFO
    Telephone: (315) 343-0057

    The MIL Network –

    July 31, 2025

  • MIL-OSI: National Fuel Reports Third Quarter Fiscal 2025 Earnings and Announces Preliminary Guidance for Fiscal 2026

    Source: GlobeNewswire (MIL-OSI)

    WILLIAMSVILLE, N.Y., July 30, 2025 (GLOBE NEWSWIRE) — National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the third quarter of its 2025 fiscal year.

    FISCAL 2025 THIRD QUARTER SUMMARY

    • GAAP earnings per share of $1.64 compared to a net loss $0.59 per share in the prior year.
    • Adjusted earnings per share of $1.64 increased 66% compared to $0.99 per share in the prior year. See non-GAAP reconciliation on page 2.
    • Exploration and Production adjusted operating results of $0.95 per share increased 157% versus the prior year, driven by lower per unit operating costs, higher realized natural gas prices, and strong well performance in the Eastern Development Area (“EDA”), which contributed to 112 Bcf of natural gas production, up 16% versus the prior year’s third quarter.
    • The Pipeline and Storage segment achieved several development milestones for expansion projects during the quarter with the announcement of the Shippingport Lateral Project and the receipt of FERC approval for the Tioga Pathway Project, which remains on track for a late calendar 2026 in-service date.
    • The Company generated $196 million in net cash provided by operating activities less net cash used in investing activities during the third quarter.
    • The Company is revising the midpoint of its fiscal 2025 adjusted earnings per share guidance to a range of $6.80 to $6.95 per share and is initiating its fiscal 2026 preliminary earnings guidance which, based upon a NYMEX price of $4.00, is expected to increase 20% from fiscal 2025 (see Guidance Summary on page 7).

    MANAGEMENT COMMENTARY

    David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “National Fuel’s excellent third quarter reflects ongoing success across the Company. Our integrated upstream and gathering operations saw record production and throughput during the quarter and a continued improvement in capital efficiency, while our regulated Utility and Pipeline & Storage segments continue to see an uplift in earnings from recent ratemaking activities and organic investment opportunities.

    “As we look forward to fiscal 2026, we expect to see significant earnings growth versus the prior year. This highlights the momentum in each of our businesses and the overall positive long-term outlook for natural gas. Strong well results in the EDA continue to confirm the depth of our best-in-class inventory and operational excellence in Northeast Pennsylvania, and underpin our mid-single-digit production growth expectations in the coming years. In addition, we have line of sight to further growth in our regulated businesses, supporting our 5% to 7% average annual rate base growth projections. Taken together, along with the broader tailwinds from growing demand for natural gas, National Fuel is well positioned to create meaningful value for shareholders in the years to come.”

    RETURN OF CAPITAL UPDATE

    During the quarter, National Fuel announced that its Board of Directors approved a 4% increase in the Company’s dividend for an annual rate of $2.14 per share. This is our 55th consecutive year of dividend increases and the 123rd year of consecutive dividend payments, demonstrating the Company’s commitment to returning cash to shareholders.

    With respect to the Company’s share repurchase program, since March 2024, the Company repurchased approximately 2 million shares at an average weighted price of $59.70 per share. Consistent with our disciplined approach to capital allocation, which balances growth with return of capital to shareholders, during the quarter the Company paused repurchases as it evaluated various growth opportunities, preserving balance sheet flexibility.

    RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS

        Three Months Ended June 30,
        (Thousands)   (Per Share)
          2025       2024       2025       2024  
    Reported GAAP Earnings   $ 149,818     $ (54,158 )   $ 1.64     $ (0.59 )
    Items impacting comparability:                
    Impairment of assets (E&P)     —       200,696       0.00       2.18  
    Tax impact of impairment of assets     —       (55,686 )     0.00       (0.60 )
    Other (refer to Segment results for details)     (615 )     873       —       —  
    Adjusted Operating Results   $ 149,203     $ 91,725     $ 1.64     $ 0.99  


    FISCAL     2025 GUIDANCE UPDATE

    National Fuel is revising its adjusted earnings per share guidance for fiscal 2025 to a range of $6.80 to $6.95. This updated range incorporates our third quarter results as well as lower expected realized natural gas prices for the remaining three months, which is largely offset by expected higher production and lower unit costs in the Exploration and Production segment. The Company is assuming an average NYMEX natural gas price of $3.25 per MMBtu for the remaining three months of fiscal 2025, which approximates the current NYMEX forward curve at this time.

    The Company’s other fiscal 2025 guidance assumptions are detailed in the table on page 7.

    INITIATION OF FISCAL 2026 PRELIMINARY GUIDANCE

    The Company is initiating preliminary earnings guidance for fiscal 2026 which it is providing at various NYMEX prices:

    NYMEX Assumption
    ($/MMBtu)    		 Fiscal 2026
    Adjusted Earnings
    Per Share Sensitivities
    $3.00 $6.35 – $6.85
    $4.00 $8.00 – $8.50
    $5.00 $9.75 – $10.25


    2026 OUTLOOK

    • Seneca’s ongoing trend of improving capital efficiency is projected to continue in fiscal 2026 with capital expenditures expected to decrease by $20 million, or 4% at the midpoint, while production is expected to increase to a range of 440 to 455 Bcf, an increase of 6% at the midpoint.
    • Regulated segment earnings are expected to increase as a result of ongoing modernization investments which are supported by recent ratemaking efforts, driven by Distribution’s three-year New York rate settlement that continues through fiscal 2027 and additional margin related to the Pennsylvania modernization tracker, or DSIC (Distribution System Improvement Charge).
    • Combined Utility and Pipeline & Storage segment capital expenditures are expected to range between $395 and $455 million, an increase of $110 million from fiscal 2025 at midpoint of guidance, with continued investment in our longstanding modernization programs, as well as significant expansion-related spending on the Tioga Pathway and Shippingport Lateral projects driving meaningful rate base growth.

    Additional details on the Company’s updated forecast assumptions and business segment guidance for fiscal 2026 are outlined in the table on page 7.

    DISCUSSION OF THIRD QUARTER RESULTS BY SEGMENT

    The following earnings discussion of each operating segment for the quarter ended June 30, 2025 is summarized in a tabular form on pages 8 and 9 of this report (earnings drivers for the nine months ended June 30, 2025 are summarized on pages 10 and 11). It may be helpful to refer to those tables while reviewing this discussion.

    Note that management defines adjusted operating results as reported GAAP earnings adjusted for items impacting comparability, and adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability.

    Upstream Business

    Exploration and Production Segment

    The Exploration and Production segment operations are carried out by Seneca Resources Company, LLC (“Seneca”). Seneca explores for, develops and produces primarily natural gas reserves in Pennsylvania.

        Three Months Ended
        June 30,
    (in thousands)     2025       2024     Variance
    GAAP Earnings   $ 86,671     $ (112,028 )   $ 198,699  
    Impairment of assets     —       200,696       (200,696 )
    Tax impact of impairment of assets     —       (55,686 )     55,686  
    Unrealized (gain) loss on derivative asset (2022 CA asset sale)     45       1,186       (1,141 )
    Tax impact of unrealized (gain) loss on derivative asset     (12 )     (325 )     313  
    Adjusted Operating Results   $ 86,704     $ 33,843     $ 52,861  
                 
    Adjusted EBITDA   $ 202,488     $ 128,535     $ 73,953  

    Seneca’s third quarter GAAP earnings increased $198.7 million versus the prior year. GAAP earnings in the prior year included a non-cash, pre-tax ceiling test impairment of $200.7 million ($145.0 million after-tax) to write-down the carrying value of Seneca’s reserves under the full cost method of accounting. GAAP earnings also included the impact of unrealized losses related to reductions in the fair value of contingent consideration received in connection with the June 2022 divestiture of Seneca’s California assets.

    Excluding items impacting comparability, Seneca’s adjusted operating results in the third quarter increased $52.9 million primarily due to higher realized natural gas prices and production, as well as lower per unit operating expenses.

    During the third quarter, Seneca produced a Company record 112 Bcf of natural gas, an increase of 15 Bcf, or 16%, from the prior year. Two highly prolific Utica pads turned in line this year in the EDA’s Tioga County were the main drivers behind this increase in production.

    Seneca’s weighted average realized natural gas price, after the impact of hedging and transportation costs, was $2.71 per Mcf, an increase of $0.43 per Mcf from the prior year. This increase was primarily due to higher NYMEX prices and higher spot prices at local sales points in Pennsylvania.

        Three Months Ended
        June 30,
    (Cost per Mcf)     2025       2024     Variance
    Lease Operating and Transportation Expense (“LOE”)   $ 0.66     $ 0.69     $ (0.03 )
    General and Administrative Expense (“G&A”)   $ 0.17     $ 0.19     $ (0.02 )
    Taxes and Other   $ 0.08     $ 0.08     $ —  
    Total Cash Operating Costs   $ 0.91     $ 0.96     $ (0.05 )
    Depreciation, Depletion and Amortization Expense (“DD&A”)   $ 0.62     $ 0.71     $ (0.09 )
    Total Operating Costs   $ 1.53     $ 1.67     $ (0.14 )

    On a per unit basis, third quarter total cash operating costs were lower compared to the prior year, primarily due to higher production. LOE included $61 million ($0.55 per Mcf), or 83% of total LOE, for gathering and compression service fees paid to the Company’s Gathering segment to connect Seneca’s production to sales points along interstate pipelines. DD&A for the quarter was $0.62 per Mcf, a decrease of $0.09 per Mcf from the prior year, largely due to ceiling test impairments recorded in prior quarters that lowered Seneca’s full cost pool depletable base.

    Midstream Businesses

    Pipeline and Storage Segment

    The Pipeline and Storage segment’s operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and Pennsylvania.

        Three Months Ended
        June 30,
    (in thousands)     2025       2024     Variance
    GAAP Earnings   $ 28,857     $ 30,690     $ (1,833 )
                 
    Adjusted EBITDA   $ 67,019     $ 68,221     $ (1,202 )

    The Pipeline and Storage segment’s third quarter GAAP earnings decreased $1.8 million versus the prior year primarily due to higher Operations and Maintenance (“O&M”) expense. The increase in O&M expense was due largely to typical inflationary increases related to higher personnel costs and third-party contractors.

    Gathering Segment

    The Gathering segment’s operations are carried out by National Fuel Gas Midstream Company, LLC’s limited liability companies. The Gathering segment constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region, which delivers Seneca and other non-affiliated Appalachian production to the interstate pipeline system.

        Three Months Ended
        June 30,
    (in thousands)     2025       2024     Variance
    GAAP Earnings   $ 29,996     $ 24,979     $ 5,017  
                 
    Adjusted EBITDA   $ 55,923     $ 47,631     $ 8,292  

    The Gathering segment’s third quarter GAAP earnings increased $5.0 million versus the prior year primarily due to higher operating revenues, which increased $7.8 million, or 13%, primarily due to an increase in throughput from Seneca’s new wells located in Tioga County.

    Downstream Business

    Utility Segment

    The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution Corporation”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.

        Three Months Ended
        June 30,
    (in thousands)     2025       2024     Variance
    GAAP Earnings   $ 4,997     $ 2,559     $ 2,438  
                 
    Adjusted EBITDA   $ 25,743     $ 21,047     $ 4,696  

    The Utility segment’s third quarter GAAP earnings increased $2.4 million, or 95%, primarily as a result of new rates approved in the Utility’s New York rate case settlement, which became effective October 1, 2024, partially offset by higher operating costs and interest expense.

    For the quarter, customer margin (operating revenues less purchased gas sold) increased $8.4 million, primarily due to an increase in customer usage, due in part to colder weather, as well as an increase in rates as part of the New York rate case settlement. Other income increased $4.0 million, largely due to the New York rate settlement, which required the recognition of non-service pension and post-retirement benefit income and a corresponding reduction in new base rates, resulting in no effect on net income.

    O&M expense increased $2.7 million primarily driven by higher personnel costs, partially offset by a reduction in uncollectible expenses as a result of a tracker implemented as part of the New York rate case settlement. DD&A expense increased by $1.6 million primarily due to higher average depreciable plant in service compared to the prior year. Further, interest expense increased $2.5 million primarily due to a higher average amount of net borrowings.

    Corporate and All Other

    The Company’s operations that are included in Corporate and All Other generated a combined net loss of $0.7 million, which was largely consistent with the prior year.

    EARNINGS TELECONFERENCE

    A conference call to discuss the results will be held on Thursday, July 31, 2025, at 9 a.m. ET. All participants must pre-register to join this conference using the Participant Registration link. A webcast link to the conference call will be provided under the Events Calendar on the NFG Investor Relations website at investor.nationalfuelgas.com. A replay will be available following the call through the end of the day, Thursday, August 7, 2025. To access the replay, dial 1-866-813-9403 and provide Access Code 592578.

    National Fuel is an integrated energy company reporting financial results for four operating segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. Additional information about National Fuel is available at www.nationalfuel.com.

    Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design, retained natural gas and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in economic conditions, including the imposition of additional tariffs on U.S. imports and related retaliatory tariffs, inflationary pressures, supply chain issues, liquidity challenges, and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; impairments under the SEC’s full cost ceiling test for natural gas reserves; changes in the price of natural gas; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; the Company’s ability to complete strategic transactions; changes in price differentials between similar quantities of natural gas sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; the impact of information technology disruptions, cybersecurity or data security breaches, including the impact of issues that may arise from the use of artificial intelligence technologies; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas reserves, including among others geology, lease availability and costs, title disputes, weather conditions, water availability and disposal or recycling opportunities of used water, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; other changes in price differentials between similar quantities of natural gas having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; negotiations with the collective bargaining units representing the Company’s workforce, including potential work stoppages during negotiations; uncertainty of natural gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas; changes in demographic patterns and weather conditions (including those related to climate change); changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war, as well as economic and operational disruptions due to third-party outages; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES

    GUIDANCE SUMMARY

    As discussed on page 2, the Company is revising its adjusted earnings per share guidance for fiscal 2025. Additional details on the Company’s forecast assumptions and business segment guidance are outlined in the table below.

    The revised adjusted earnings per share guidance range excludes certain items that impacted the comparability of adjusted operating results during the nine months ended June 30, 2025, including: (1) the after tax impairment of assets, which reduced earnings by $1.14 per share; (2) after-tax premiums paid on early redemptions of debt, which reduced earnings by $0.02 per share; (3) after-tax unrealized losses on a derivative asset, which reduced earnings by $0.01 per share; and (4) after-tax unrealized losses on other investments, which reduced earnings by $0.02 per share. While the Company expects to record certain adjustments to unrealized gain or loss on investments during the remaining three months ending September 30, 2025, the amounts of these and other potential adjustments are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

        Updated FY 2025 Guidance   Preliminary FY 2026 Guidance
             
    Consolidated Adjusted Earnings per Share   $6.80 to $6.95   See sensitivity table on p.2
    Consolidated Effective Tax Rate   ~ 25.5%   ~ 25.5%
             
    Capital Expenditures (Millions)        
    Exploration and Production   $500 – $510   $470 – $500
    Pipeline and Storage   $120 – $140   $210 – $250
    Gathering   $95 – $110   $90 – $110
    Utility   $175 – $195   $185 – $205
    Consolidated Capital Expenditures   $890 – $955   $955 – $1,065
             
    Exploration and Production Segment Guidance        
             
    Commodity Price Assumptions   (remaining three months)    
    NYMEX natural gas price (per MMBtu)   $3.25   $3.00 / $4.00 / $5.00
    Appalachian basin spot price (per MMBtu)   $2.50   $2.30 / $3.10 / $3.90
             
    Production (Bcf)   420 to 425   440 to 455
             
    E&P Operating Costs ($/Mcf)        
    LOE   $0.67 – $0.68   $0.67 – $0.68
    G&A   ~$0.18   ~$0.18
    DD&A   $0.63 – $0.65   $0.65 – $0.69
             
    Other Business Segment Guidance (Millions)        
    Gathering Segment Revenues   $255 – $260   $245 – $255
    Pipeline and Storage Segment Revenues   $420 – $430   $415 – $430
             
    Utility Segment Guidance (Millions)        
    Customer Margin*   $450 – $460   $470 – $490
    O&M Expense   $240 – $245   $250 – $260
    Non-Service Pension & OPEB Income   $23 – $27   $23 – $27
    * Customer Margin is defined as Operating Revenues less Purchased Gas Expense.
    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
    QUARTER ENDED JUNE 30, 2025
    (Unaudited)
                             
        Upstream   Midstream   Downstream        
                             
        Exploration &   Pipeline &           Corporate /    
    (Thousands of Dollars)   Production   Storage   Gathering   Utility   All Other   Consolidated*
                             
    Third quarter 2024 GAAP earnings   $ (112,028 )   $ 30,690     $ 24,979     $ 2,559     $ (358 )   $ (54,158 )
    Items impacting comparability:                        
    Impairment of assets     200,696                       200,696  
    Tax impact of impairment of assets     (55,686 )                     (55,686 )
    Unrealized (gain) loss on derivative asset     1,186                       1,186  
    Tax impact of unrealized (gain) loss on derivative asset     (325 )                     (325 )
    Unrealized (gain) loss on other investments                     15       15  
    Tax impact of unrealized (gain) loss on other investments                     (3 )     (3 )
    Third quarter 2024 adjusted operating results     33,843       30,690       24,979       2,559       (346 )     91,725  
    Drivers of adjusted operating results**                        
    Upstream Revenues                        
    Higher (lower) natural gas production     27,144                       27,144  
    Higher (lower) realized natural gas prices, after hedging     38,281                       38,281  
    Midstream Revenues                        
    Higher (lower) operating revenues             6,125               6,125  
    Downstream Margins***                        
    Impact of usage and weather                 2,738           2,738  
    Impact of new rates in New York                 2,788           2,788  
    Regulatory revenue adjustments                 670           670  
    Operating Expenses                        
    Lower (higher) lease operating and transportation expenses     (5,747 )                     (5,747 )
    Lower (higher) operating expenses         (1,687 )         (2,126 )     (1,463 )     (5,276 )
    Lower (higher) property, franchise and other taxes     (1,636 )                     (1,636 )
    Lower (higher) depreciation / depletion             (882 )     (1,242 )         (2,124 )
    Other Income (Expense)                        
    Higher (lower) other income     (531 )     (1,238 )         3,169       1,352       2,752  
    (Higher) lower interest expense     589       510           (2,007 )     (1,616 )     (2,524 )
    Income Taxes                        
    Lower (higher) income tax expense / effective tax rate     (5,564 )     (39 )     (178 )     (1,190 )     710       (6,261 )
                             
    All other / rounding     325       621       (48 )     (362 )     12       548  
    Third quarter 2025 adjusted operating results     86,704       28,857       29,996       4,997       (1,351 )     149,203  
    Items impacting comparability:                        
    Unrealized gain (loss) on derivative asset     (45 )                     (45 )
    Tax impact of unrealized gain (loss) on derivative asset     12                       12  
    Unrealized gain (loss) on other investments                     820       820  
    Tax impact of unrealized gain (loss) on other investments                     (172 )     (172 )
    Third quarter 2025 GAAP earnings   $ 86,671     $ 28,857     $ 29,996     $ 4,997     $ (703 )   $ 149,818  
                             
    * Amounts do not reflect intercompany eliminations.
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
    QUARTER ENDED JUNE 30, 2025
    (Unaudited)
                             
        Upstream   Midstream   Downstream        
                             
        Exploration &   Pipeline &           Corporate /    
        Production   Storage   Gathering   Utility   All Other   Consolidated*
                             
    Third quarter 2024 GAAP earnings per share   $ (1.22 )   $ 0.33     $ 0.27     $ 0.03     $ —     $ (0.59 )
    Items impacting comparability:                        
    Impairment of assets, net of tax     1.58                       1.58  
    Unrealized (gain) loss on derivative asset, net of tax     0.01                       0.01  
    Unrealized (gain) loss on other investments, net of tax                     —       —  
    Rounding                     (0.01 )     (0.01 )
    Third quarter 2024 adjusted operating results per share     0.37       0.33       0.27       0.03       (0.01 )     0.99  
    Drivers of adjusted operating results**                        
    Upstream Revenues                        
    Higher (lower) natural gas production     0.30                       0.30  
    Higher (lower) realized natural gas prices, after hedging     0.42                       0.42  
    Midstream Revenues                        
    Higher (lower) operating revenues             0.07               0.07  
    Downstream Margins***                        
    Impact of usage and weather                 0.03           0.03  
    Impact of new rates in New York                 0.03           0.03  
    Regulatory revenue adjustments                 0.01           0.01  
    Operating Expenses                        
    Lower (higher) lease operating and transportation expenses     (0.06 )                     (0.06 )
    Lower (higher) operating expenses         (0.02 )         (0.02 )     (0.02 )     (0.06 )
    Lower (higher) property, franchise and other taxes     (0.02 )                     (0.02 )
    Lower (higher) depreciation / depletion             (0.01 )     (0.01 )         (0.02 )
    Other Income (Expense)                        
    Higher (lower) other income     (0.01 )     (0.01 )         0.03       0.01       0.02  
    (Higher) lower interest expense     0.01       0.01           (0.02 )     (0.02 )     (0.02 )
    Income Taxes                        
    Lower (higher) income tax expense / effective tax rate     (0.06 )     —       —       (0.01 )     0.01       (0.06 )
                             
    All other / rounding     —       0.01       —       (0.02 )     0.02       0.01  
    Third quarter 2025 adjusted operating results per share     0.95       0.32       0.33       0.05       (0.01 )     1.64  
    Items impacting comparability:                        
    Unrealized gain (loss) on derivative asset, net of tax     —                       —  
    Unrealized gain (loss) on other investments, net of tax                     0.01       0.01  
    Rounding                     (0.01 )     (0.01 )
    Third quarter 2025 GAAP earnings per share   $ 0.95     $ 0.32     $ 0.33     $ 0.05     $ (0.01 )   $ 1.64  
                             
    * Amounts do not reflect intercompany eliminations.
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
    NINE MONTHS ENDED JUNE 30, 2025
    (Unaudited)
                             
        Upstream   Midstream   Downstream        
                             
        Exploration &   Pipeline &           Corporate /    
    (Thousands of Dollars)   Production   Storage   Gathering   Utility   All Other   Consolidated*
    Nine months ended June 30, 2024 GAAP earnings   $ 2,521     $ 85,482     $ 82,510     $ 73,848     $ 773     $ 245,134  
    Items impacting comparability:                        
    Impairment of assets     200,696                       200,696  
    Tax impact of impairment of assets     (55,686 )                     (55,686 )
    Unrealized (gain) loss on derivative asset     4,848                       4,848  
    Tax impact of unrealized (gain) loss on derivative asset     (1,330 )                     (1,330 )
    Unrealized (gain) loss on other investments                     (1,803 )     (1,803 )
    Tax impact of unrealized (gain) loss on other investments                     379       379  
    Nine months ended June 30, 2024 adjusted operating results     151,049       85,482       82,510       73,848       (651 )     392,238  
    Drivers of adjusted operating results**                        
    Upstream Revenues                        
    Higher (lower) natural gas production     28,414                       28,414  
    Higher (lower) realized natural gas prices, after hedging     70,158                       70,158  
    Midstream Revenues                        
    Higher (lower) operating revenues         12,241       5,793               18,034  
    Downstream Margins***                        
    Impact of usage and weather                 5,423           5,423  
    Impact of new rates in New York                 25,230           25,230  
    Higher (lower) other operating revenues                 (1,400 )         (1,400 )
    Operating Expenses                        
    Lower (higher) lease operating and transportation expenses     (5,810 )                     (5,810 )
    Lower (higher) operating expenses     (1,490 )     (3,790 )     (751 )     (6,700 )     (1,740 )     (14,471 )
    Lower (higher) property, franchise and other taxes     (2,381 )                     (2,381 )
    Lower (higher) depreciation / depletion     13,760           (2,684 )     (2,551 )         8,525  
    Other Income (Expense)                        
    Higher (lower) other income     (2,420 )     (1,840 )         14,888       3,653       14,281  
    (Higher) lower interest expense         838       (1,648 )     (5,686 )     (4,780 )     (11,276 )
    Income Taxes                        
    Lower (higher) income tax expense / effective tax rate     (7,902 )     (286 )     727       (2,318 )     755       (9,024 )
                             
    All other / rounding     555       374       234       306       67       1,536  
    Nine months ended June 30, 2025 adjusted operating results     243,933       93,019       84,181       101,040       (2,696 )     519,477  
    Items impacting comparability:                        
    Impairment of assets     (141,802 )                     (141,802 )
    Tax impact of impairment of assets     37,169                       37,169  
    Premiums paid on early redemption of debt     (1,430 )         (955 )             (2,385 )
    Tax impact of premiums paid on early redemption of debt     385           257               642  
    Unrealized gain (loss) on derivative asset     (729 )                     (729 )
    Tax impact of unrealized gain (loss) on derivative asset     196                       196  
    Unrealized gain (loss) on other investments                     (1,780 )     (1,780 )
    Tax impact of unrealized gain (loss) on other investments                     374       374  
    Nine months ended June 30, 2025 GAAP earnings   $ 137,722     $ 93,019     $ 83,483     $ 101,040     $ (4,102 )   $ 411,162  
                             
    * Amounts do not reflect intercompany eliminations.
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
    NINE MONTHS ENDED JUNE 30, 2025
    (Unaudited)
                             
        Upstream   Midstream   Downstream        
                             
        Exploration &   Pipeline &           Corporate /    
        Production   Storage   Gathering   Utility   All Other   Consolidated*
    Nine months ended June 30, 2024 GAAP earnings per share   $ 0.03     $ 0.92     $ 0.89     $ 0.80     $ 0.01     $ 2.65  
    Items impacting comparability:                        
    Impairment of assets, net of tax     1.57                       1.57  
    Unrealized (gain) loss on derivative asset, net of tax     0.04                       0.04  
    Unrealized (gain) loss on other investments, net of tax                     (0.02 )     (0.02 )
    Rounding     (0.01 )                 0.01       —  
    Nine months ended June 30, 2024 adjusted operating results per share     1.63       0.92       0.89       0.80       —       4.24  
    Drivers of adjusted operating results**                        
    Upstream Revenues                        
    Higher (lower) natural gas production     0.31                       0.31  
    Higher (lower) realized natural gas prices, after hedging     0.77                       0.77  
    Midstream Revenues                        
    Higher (lower) operating revenues         0.13       0.06               0.19  
    Downstream Margins***                        
    Impact of usage and weather                 0.06           0.06  
    Impact of new rates in New York                 0.28           0.28  
    Higher (lower) other operating revenues                 0.01           0.01  
    Operating Expenses                        
    Lower (higher) lease operating and transportation expenses     (0.06 )                     (0.06 )
    Lower (higher) operating expenses     (0.02 )     (0.04 )     (0.01 )     (0.07 )     (0.02 )     (0.16 )
    Lower (higher) property, franchise and other taxes     (0.03 )                     (0.03 )
    Lower (higher) depreciation / depletion     0.15           (0.03 )     (0.03 )         0.09  
    Other Income (Expense)                        
    Higher (lower) other income     (0.03 )     (0.02 )         0.16       0.04       0.15  
    (Higher) lower interest expense         0.01       (0.02 )     (0.06 )     (0.05 )     (0.12 )
    Income Taxes                        
    Lower (higher) income tax expense / effective tax rate     (0.09 )     —       0.01       (0.03 )     0.01       (0.10 )
                             
    Impact of reduction in shares     0.03       0.01       0.01       0.01       —       0.06  
    All other / rounding     0.01       0.01       0.01       (0.02 )     (0.01 )     —  
    Nine months ended June 30, 2025 adjusted operating results per share     2.67       1.02       0.92       1.11       (0.03 )     5.69  
    Items impacting comparability:                        
    Impairment of assets, net of tax     (1.14 )                     (1.14 )
    Premiums paid on early redemption of debt, net of tax     (0.01 )         (0.01 )             (0.02 )
    Unrealized gain (loss) on derivative asset, net of tax     (0.01 )                     (0.01 )
    Unrealized gain (loss) on other investments, net of tax                     (0.02 )     (0.02 )
    Rounding                     0.01       0.01  
    Nine months ended June 30, 2025 GAAP earnings per share   $ 1.51     $ 1.02     $ 0.91     $ 1.11     $ (0.04 )   $ 4.51  
                             
    * Amounts do not reflect intercompany eliminations.
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                     
    (Thousands of Dollars, except per share amounts)                
        Three Months Ended   Nine Months Ended
        June 30,   June 30,
        (Unaudited)   (Unaudited)
    SUMMARY OF OPERATIONS     2025       2024       2025       2024  
    Operating Revenues:                
    Utility Revenues   $ 157,446     $ 124,858     $ 729,445     $ 616,977  
    Exploration and Production and Other Revenues     303,883       220,905       864,701       739,537  
    Pipeline and Storage and Gathering Revenues     70,501       71,679       217,116       216,228  
          531,830       417,442       1,811,262       1,572,742  
    Operating Expenses:                
    Purchased Gas     27,986       4,952       228,661       167,444  
    Operation and Maintenance:                
    Utility     56,053       53,412       174,744       166,405  
    Exploration and Production and Other     35,272       35,148       103,874       102,768  
    Pipeline and Storage and Gathering     41,679       40,019       119,982       114,321  
    Property, Franchise and Other Taxes     24,180       21,201       71,450       66,635  
    Depreciation, Depletion and Amortization     116,408       113,454       337,055       348,179  
    Impairment of Assets     —       200,696       141,802       200,696  
          301,578       468,882       1,177,568       1,166,448  
                     
    Operating Income (Loss)     230,252       (51,440 )     633,694       406,294  
                     
    Other Income (Expense):                
    Other Income (Deductions)     8,534       3,188       31,486       12,989  
    Interest Expense on Long-Term Debt     (34,333 )     (32,876 )     (107,356 )     (89,791 )
    Other Interest Expense     (3,556 )     (1,341 )     (13,033 )     (14,250 )
                     
    Income (Loss) Before Income Taxes     200,897       (82,469 )     544,791       315,242  
                     
    Income Tax Expense (Benefit)     51,079       (28,311 )     133,629       70,108  
                     
    Net Income (Loss) Available for Common Stock   $ 149,818     $ (54,158 )   $ 411,162     $ 245,134  
                     
    Earnings (Loss) Per Common Share                
    Basic   $ 1.66     $ (0.59 )   $ 4.54     $ 2.67  
    Diluted   $ 1.64     $ (0.59 )   $ 4.51     $ 2.65  
                     
    Weighted Average Common Shares:                
    Used in Basic Calculation     90,358,018       91,874,049       90,546,228       91,966,034  
    Used in Diluted Calculation     91,139,556       91,874,049       91,247,547       92,467,787  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (Unaudited)
         
        June 30,   September 30,
    (Thousands of Dollars)     2025       2024  
    ASSETS        
    Property, Plant and Equipment   $ 15,044,963     $ 14,524,798  
    Less – Accumulated Depreciation, Depletion and Amortization     7,588,956       7,185,593  
    Net Property, Plant and Equipment     7,456,007       7,339,205  
    Current Assets:        
    Cash and Temporary Cash Investments     39,317       38,222  
    Receivables – Net     222,515       127,222  
    Unbilled Revenue     15,347       15,521  
    Gas Stored Underground     12,810       35,055  
    Materials and Supplies – at average cost     51,022       47,670  
    Unrecovered Purchased Gas Costs     2,903       —  
    Other Current Assets     64,241       92,229  
    Total Current Assets     408,155       355,919  
    Other Assets:        
    Recoverable Future Taxes     90,493       80,084  
    Unamortized Debt Expense     6,701       5,604  
    Other Regulatory Assets     124,300       108,022  
    Deferred Charges     71,426       69,662  
    Other Investments     73,764       81,705  
    Goodwill     5,476       5,476  
    Prepaid Pension and Post-Retirement Benefit Costs     199,286       180,230  
    Fair Value of Derivative Financial Instruments     2,394       87,905  
    Other     8,158       5,958  
    Total Other Assets     581,998       624,646  
    Total Assets   $ 8,446,160     $ 8,319,770  
    CAPITALIZATION AND LIABILITIES        
    Capitalization:        
    Comprehensive Shareholders’ Equity        
    Common Stock, $1 Par Value Authorized – 200,000,000 Shares; Issued and        
    Outstanding – 90,355,956 Shares and 91,005,993 Shares, Respectively   $ 90,356     $ 91,006  
    Paid in Capital     1,047,406       1,045,487  
    Earnings Reinvested in the Business     1,953,533       1,727,326  
    Accumulated Other Comprehensive Loss     (115,807 )     (15,476 )
    Total Comprehensive Shareholders’ Equity     2,975,488       2,848,343  
    Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs     2,381,852       2,188,243  
    Total Capitalization     5,357,340       5,036,586  
    Current and Accrued Liabilities:        
    Notes Payable to Banks and Commercial Paper     61,500       90,700  
    Current Portion of Long-Term Debt     300,000       500,000  
    Accounts Payable     123,131       165,068  
    Amounts Payable to Customers     24,275       42,720  
    Dividends Payable     48,340       46,872  
    Interest Payable on Long-Term Debt     39,060       27,247  
    Customer Advances     —       19,373  
    Customer Security Deposits     28,739       36,265  
    Other Accruals and Current Liabilities     207,179       162,903  
    Fair Value of Derivative Financial Instruments     57,673       4,744  
    Total Current and Accrued Liabilities     889,897       1,095,892  
    Other Liabilities:        
    Deferred Income Taxes     1,153,427       1,111,165  
    Taxes Refundable to Customers     297,602       305,645  
    Cost of Removal Regulatory Liability     302,932       292,477  
    Other Regulatory Liabilities     137,025       151,452  
    Other Post-Retirement Liabilities     3,393       3,511  
    Asset Retirement Obligations     188,305       203,006  
    Other Liabilities     116,239       120,036  
    Total Other Liabilities     2,198,923       2,187,292  
    Commitments and Contingencies     —       —  
    Total Capitalization and Liabilities   $ 8,446,160     $ 8,319,770  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
     
        Nine Months Ended
        June 30,
    (Thousands of Dollars)     2025       2024  
             
    Operating Activities:        
    Net Income Available for Common Stock   $ 411,162     $ 245,134  
    Adjustments to Reconcile Net Income to Net Cash        
    Provided by Operating Activities:        
    Impairment of Assets     141,802       200,696  
    Depreciation, Depletion and Amortization     337,055       348,179  
    Deferred Income Taxes     60,754       47,212  
    Premiums Paid on Early Redemption of Debt     2,385       —  
    Stock-Based Compensation     15,721       15,984  
    Other     19,296       18,542  
    Change in:        
    Receivables and Unbilled Revenue     (95,254 )     5,253  
    Gas Stored Underground and Materials and Supplies     18,803       18,981  
    Unrecovered Purchased Gas Costs     (2,903 )     —  
    Other Current Assets     28,038       17,431  
    Accounts Payable     1,744       (13,705 )
    Amounts Payable to Customers     (18,445 )     3,550  
    Customer Advances     (19,373 )     (21,003 )
    Customer Security Deposits     (7,526 )     7,910  
    Other Accruals and Current Liabilities     44,283       23,846  
    Other Assets     (35,348 )     (35,346 )
    Other Liabilities     (39,918 )     (14,649 )
    Net Cash Provided by Operating Activities   $ 862,276     $ 868,015  
             
    Investing Activities:        
    Capital Expenditures   $ (627,316 )   $ (684,200 )
    Other     9,352       (1,371 )
    Net Cash Used in Investing Activities   $ (617,964 )   $ (685,571 )
             
    Financing Activities:        
    Changes in Notes Payable to Banks and Commercial Paper     (29,200 )     (287,500 )
    Shares Repurchased Under Repurchase Plan     (54,430 )     (27,847 )
    Reduction of Long-Term Debt     (1,004,086 )     —  
    Net Proceeds From Issuance of Long-Term Debt     988,731       299,396  
    Dividends Paid on Common Stock     (140,098 )     (136,610 )
    Net Repurchases of Common Stock Under Stock and Benefit Plans     (4,134 )     (3,916 )
    Net Cash Used in Financing Activities   $ (243,217 )   $ (156,477 )
             
    Net Increase in Cash and Cash Equivalents     1,095       25,967  
    Cash and Cash Equivalents at Beginning of Period     38,222       55,447  
    Cash and Cash Equivalents at June 30   $ 39,317     $ 81,414  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                         
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
                         
    UPSTREAM BUSINESS
                         
        Three Months Ended   Nine Months Ended
    (Thousands of Dollars, except per share amounts)   June 30,   June 30,
    EXPLORATION AND PRODUCTION SEGMENT     2025       2024     Variance     2025       2024     Variance
    Total Operating Revenues   $ 303,883     $ 220,905     $ 82,978     $ 864,701     $ 739,537     $ 125,164  
    Operating Expenses:                    
    Operation and Maintenance:                    
    General and Administrative Expense     18,602       18,213       389       56,776       53,170       3,606  
    Lease Operating and Transportation Expense     73,856       66,581       7,275       210,671       203,317       7,354  
    All Other Operation and Maintenance Expense     3,816       4,526       (710 )     10,994       12,714       (1,720 )
    Property, Franchise and Other Taxes     5,121       3,050       2,071       12,778       9,764       3,014  
    Depreciation, Depletion and Amortization     68,848       68,778       70       196,773       214,191       (17,418 )
    Impairment of Assets     —       200,696       (200,696 )     141,802       200,696       (58,894 )
          170,243       361,844       (191,601 )     629,794       693,852       (64,058 )
                         
    Operating Income (Loss)     133,640       (140,939 )     274,579       234,907       45,685       189,222  
                         
    Other Income (Expense):                    
    Non-Service Pension and Post-Retirement Benefit Credit     37       100       (63 )     111       301       (190 )
    Interest and Other Income (Deductions)     44       (488 )     532       416       (830 )     1,246  
    Interest Expense on Long-Term Debt     —       —       —       (1,949 )     —       (1,949 )
    Other Interest Expense     (13,925 )     (14,670 )     745       (44,215 )     (45,046 )     831  
    Income (Loss) Before Income Taxes     119,796       (155,997 )     275,793       189,270       110       189,160  
    Income Tax Expense (Benefit)     33,125       (43,969 )     77,094       51,548       (2,411 )     53,959  
    Net Income (Loss)   $ 86,671     $ (112,028 )   $ 198,699     $ 137,722     $ 2,521     $ 135,201  
    Net Income (Loss) Per Share (Diluted)   $ 0.95     $ (1.22 )   $ 2.17     $ 1.51     $ 0.03     $ 1.48  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                         
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
                         
    MIDSTREAM BUSINESSES
                         
        Three Months Ended   Nine Months Ended
    (Thousands of Dollars, except per share amounts)   June 30,   June 30,
    PIPELINE AND STORAGE SEGMENT     2025       2024     Variance     2025       2024     Variance
    Revenues from External Customers   $ 67,982     $ 68,035     $ (53 )   $ 207,916     $ 204,071     $ 3,845  
    Intersegment Revenues     37,597       37,384       213       113,849       103,781       10,068  
    Total Operating Revenues     105,579       105,419       160       321,765       307,852       13,913  
    Operating Expenses:                    
    Purchased Gas     (164 )     614       (778 )     (42 )     1,540       (1,582 )
    Operation and Maintenance     30,264       28,128       2,136       87,940       83,142       4,798  
    Property, Franchise and Other Taxes     8,460       8,456       4       25,727       25,776       (49 )
    Depreciation, Depletion and Amortization     18,601       18,453       148       55,733       56,157       (424 )
          57,161       55,651       1,510       169,358       166,615       2,743  
                         
    Operating Income     48,418       49,768       (1,350 )     152,407       141,237       11,170  
                         
    Other Income (Expense):                    
    Non-Service Pension and Post-Retirement Benefit Credit     952       1,257       (305 )     2,857       3,772       (915 )
    Interest and Other Income     1,111       2,362       (1,251 )     4,945       6,340       (1,395 )
    Interest Expense     (11,209 )     (11,855 )     646       (34,637 )     (35,698 )     1,061  
    Income Before Income Taxes     39,272       41,532       (2,260 )     125,572       115,651       9,921  
    Income Tax Expense     10,415       10,842       (427 )     32,553       30,169       2,384  
    Net Income   $ 28,857     $ 30,690     $ (1,833 )   $ 93,019     $ 85,482     $ 7,537  
    Net Income Per Share (Diluted)   $ 0.32     $ 0.33     $ (0.01 )   $ 1.02     $ 0.92     $ 0.10  
                         
        Three Months Ended   Nine Months Ended
        June 30,   June 30,
    GATHERING SEGMENT     2025       2024     Variance     2025       2024     Variance
    Revenues from External Customers   $ 2,519     $ 3,644     $ (1,125 )   $ 9,200     $ 12,157     $ (2,957 )
    Intersegment Revenues     65,354       56,476       8,878       184,834       174,544       10,290  
    Total Operating Revenues     67,873       60,120       7,753       194,034       186,701       7,333  
    Operating Expenses:                    
    Operation and Maintenance     11,929       12,382       (453 )     33,633       32,682       951  
    Property, Franchise and Other Taxes     21       107       (86 )     (206 )     224       (430 )
    Depreciation, Depletion and Amortization     10,848       9,732       1,116       32,197       28,800       3,397  
          22,798       22,221       577       65,624       61,706       3,918  
                         
    Operating Income     45,075       37,899       7,176       128,410       124,995       3,415  
                         
    Other Income (Expense):                    
    Non-Service Pension and Post-Retirement Benefit Credit (Costs)     (1 )     9       (10 )     (1 )     28       (29 )
    Interest and Other Income     —       113       (113 )     152       257       (105 )
    Interest Expense on Long-Term Debt     —       —       —       (1,334 )     —       (1,334 )
    Other Interest Expense     (3,870 )     (3,393 )     (477 )     (12,531 )     (10,824 )     (1,707 )
    Income Before Income Taxes     41,204       34,628       6,576       114,696       114,456       240  
    Income Tax Expense     11,208       9,649       1,559       31,213       31,946       (733 )
    Net Income   $ 29,996     $ 24,979     $ 5,017     $ 83,483     $ 82,510     $ 973  
    Net Income Per Share (Diluted)   $ 0.33     $ 0.27     $ 0.06     $ 0.91     $ 0.89     $ 0.02  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                         
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
                         
    DOWNSTREAM BUSINESS
                         
        Three Months Ended   Nine Months Ended
    (Thousands of Dollars, except per share amounts)   June 30,   June 30,
    UTILITY SEGMENT     2025       2024     Variance     2025       2024     Variance
    Revenues from External Customers   $ 157,446     $ 124,858     $ 32,588     $ 729,445     $ 616,977     $ 112,468  
    Intersegment Revenues     77       86       (9 )     279       479       (200 )
    Total Operating Revenues     157,523       124,944       32,579       729,724       617,456       112,268  
    Operating Expenses:                    
    Purchased Gas     64,292       40,096       24,196       337,541       264,983       72,558  
    Operation and Maintenance     57,039       54,349       2,690       177,742       169,261       8,481  
    Property, Franchise and Other Taxes     10,449       9,452       997       32,761       30,471       2,290  
    Depreciation, Depletion and Amortization     17,945       16,373       1,572       51,908       48,678       3,230  
          149,725       120,270       29,455       599,952       513,393       86,559  
                         
    Operating Income     7,798       4,674       3,124       129,772       104,063       25,709  
                         
    Other Income (Expense):                    
    Non-Service Pension and Post-Retirement Benefit Credit     5,328       462       4,866       23,498       1,788       21,710  
    Interest and Other Income     628       1,485       (857 )     1,869       4,735       (2,866 )
    Interest Expense     (10,958 )     (8,417 )     (2,541 )     (32,601 )     (25,402 )     (7,199 )
    Income (Loss) Before Income Taxes     2,796       (1,796 )     4,592       122,538       85,184       37,354  
    Income Tax Expense (Benefit)     (2,201 )     (4,355 )     2,154       21,498       11,336       10,162  
    Net Income   $ 4,997     $ 2,559     $ 2,438     $ 101,040     $ 73,848     $ 27,192  
    Net Income Per Share (Diluted)   $ 0.05     $ 0.03     $ 0.02     $ 1.11     $ 0.80     $ 0.31  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                         
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
                         
        Three Months Ended   Nine Months Ended
    (Thousands of Dollars, except per share amounts)   June 30,   June 30,
    ALL OTHER     2025       2024     Variance     2025       2024     Variance
    Total Operating Revenues   $ —     $ —     $ —     $ —     $ —     $ —  
    Operating Expenses:                    
    Operation and Maintenance     —       —       —       —       —       —  
          —       —       —       —       —       —  
                         
    Operating Income     —       —       —       —       —       —  
    Other Income (Expense):                    
    Interest and Other Income (Deductions)     (131 )     (65 )     (66 )     (489 )     (184 )     (305 )
    Interest Expense     (141 )     (97 )     (44 )     (389 )     (262 )     (127 )
    Loss before Income Taxes     (272 )     (162 )     (110 )     (878 )     (446 )     (432 )
    Income Tax Benefit     (63 )     (38 )     (25 )     (204 )     (105 )     (99 )
    Net Loss   $ (209 )   $ (124 )   $ (85 )   $ (674 )   $ (341 )   $ (333 )
    Net Loss Per Share (Diluted)   $ —     $ —     $ —     $ (0.01 )   $ —     $ (0.01 )
                 
        Three Months Ended   Nine Months Ended
        June 30,   June 30,
    CORPORATE     2025       2024     Variance     2025       2024     Variance
    Revenues from External Customers   $ —     $ —     $ —     $ —     $ —     $ —  
    Intersegment Revenues     1,341       1,285       56       4,024       3,856       168  
    Total Operating Revenues     1,341       1,285       56       4,024       3,856       168  
    Operating Expenses:                    
    Operation and Maintenance     5,725       3,873       1,852       14,992       12,789       2,203  
    Property, Franchise and Other Taxes     129       136       (7 )     390       400       (10 )
    Depreciation, Depletion and Amortization     166       118       48       444       353       91  
          6,020       4,127       1,893       15,826       13,542       2,284  
                         
    Operating Loss     (4,679 )     (2,842 )     (1,837 )     (11,802 )     (9,686 )     (2,116 )
    Other Income (Expense):                    
    Non-Service Pension and Post-Retirement Benefit Costs     (212 )     (386 )     174       (635 )     (1,161 )     526  
    Interest and Other Income     41,073       39,025       2,048       123,918       120,288       3,630  
    Interest Expense on Long-Term Debt     (34,333 )     (32,876 )     (1,457 )     (104,073 )     (89,791 )     (14,282 )
    Other Interest Expense     (3,748 )     (3,595 )     (153 )     (13,815 )     (19,363 )     5,548  
    Income (Loss) before Income Taxes     (1,899 )     (674 )     (1,225 )     (6,407 )     287       (6,694 )
    Income Tax Benefit     (1,405 )     (440 )     (965 )     (2,979 )     (827 )     (2,152 )
    Net Income (Loss)   $ (494 )   $ (234 )   $ (260 )   $ (3,428 )   $ 1,114     $ (4,542 )
    Net Income (Loss) Per Share (Diluted)   $ (0.01 )   $ —     $ (0.01 )   $ (0.03 )   $ 0.01     $ (0.04 )
                         
        Three Months Ended   Nine Months Ended
        June 30,   June 30,
    INTERSEGMENT ELIMINATIONS     2025       2024     Variance     2025       2024     Variance
    Intersegment Revenues   $ (104,369 )   $ (95,231 )   $ (9,138 )   $ (302,986 )   $ (282,660 )   $ (20,326 )
    Operating Expenses:                    
    Purchased Gas     (36,142 )     (35,758 )     (384 )     (108,838 )     (99,079 )     (9,759 )
    Operation and Maintenance     (68,227 )     (59,473 )     (8,754 )     (194,148 )     (183,581 )     (10,567 )
          (104,369 )     (95,231 )     (9,138 )     (302,986 )     (282,660 )     (20,326 )
    Operating Income     —       —       —       —       —       —  
    Other Income (Expense):                    
    Interest and Other Deductions     (40,295 )     (40,686 )     391       (125,155 )     (122,345 )     (2,810 )
    Interest Expense     40,295       40,686       (391 )     125,155       122,345       2,810  
    Net Income   $ —     $ —     $ —     $ —     $ —     $ —  
    Net Income Per Share (Diluted)   $ —     $ —     $ —     $ —     $ —     $ —  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                             
    SEGMENT INFORMATION (Continued)
    (Thousands of Dollars)
                             
        Three Months Ended   Nine Months Ended
        June 30,   June 30,
        (Unaudited)   (Unaudited)
                Increase           Increase
          2025       2024     (Decrease)     2025       2024     (Decrease)
                             
    Capital Expenditures:                        
    Exploration and Production   $ 123,369   (1) $ 114,679   (3) $ 8,690     $ 354,355   (1)(2) $ 399,820   (3)(4) $ (45,465 )
    Pipeline and Storage     22,700   (1)   26,212   (3)   (3,512 )     58,117   (1)(2)   68,791   (3)(4)   (10,674 )
    Gathering     26,638   (1)   29,570   (3)   (2,932 )     58,164   (1)(2)   69,088   (3)(4)   (10,924 )
    Utility     50,025   (1)   49,257   (3)   768       128,322   (1)(2)   117,508   (3)(4)   10,814  
    Total Reportable Segments     222,732       219,718       3,014       598,958       655,207       (56,249 )
    All Other     —       —       —       —       —       —  
    Corporate     138       71       67       518       253       265  
    Eliminations     —       —       —       (3,520 )     —       (3,520 )
    Total Capital Expenditures   $ 222,870     $ 219,789     $ 3,081     $ 595,956     $ 655,460     $ (59,504 )
    (1) Capital expenditures for the quarter and nine months ended June 30, 2025, include accounts payable and accrued liabilities related to capital expenditures of $61.5 million, $5.7 million, $11.6 million, and $9.8 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at June 30, 2025, since they represent non-cash investing activities at that date.
    (2) Capital expenditures for the nine months ended June 30, 2025, exclude capital expenditures of $63.3 million, $14.4 million, $21.7 million and $20.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2024 and paid during the nine months ended June 30, 2025. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2024, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at June 30, 2025.
    (3) Capital expenditures for the quarter and nine months ended June 30, 2024, include accounts payable and accrued liabilities related to capital expenditures of $50.9 million, $7.0 million, $14.6 million, and $8.0 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were excluded from the Consolidated Statement of Cash Flows at June 30, 2024, since they represented non-cash investing activities at that date.
    (4) Capital expenditures for the nine months ended June 30, 2024, exclude capital expenditures of $43.2 million, $31.8 million, $20.6 million and $13.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2023 and paid during the nine months ended June 30, 2024. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2023, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at June 30, 2024.
    DEGREE DAYS                            
                          Percent Colder
                          (Warmer) Than:
    Three Months Ended June 30,   Normal   2025   2024   Normal (1)   Last Year (1)
    Buffalo, NY (2)   843     825     565     (2.1 )   46.0  
    Erie, PA   776     813     519     4.8     56.6  
                                 
    Nine Months Ended June 30,                            
    Buffalo, NY (2)   6,195     5,825     5,128     (6.0 )   13.6  
    Erie, PA   5,693     5,527     4,759     (2.9 )   16.1  
    (1) Percents compare actual 2025 degree days to normal degree days and actual 2025 degree days to actual 2024 degree days.
    (2) Normal degree days changed from NOAA 30-year degree days to NOAA 15-year degree days with the implementation of new base rates in New York effective October 2024.
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                             
    EXPLORATION AND PRODUCTION INFORMATION
                             
        Three Months Ended   Nine Months Ended
        June 30,   June 30,
                Increase           Increase
          2025       2024     (Decrease)     2025       2024     (Decrease)
                             
    Gas Production/Prices:                        
    Production (MMcf)                        
    Appalachia     111,588       96,504       15,084       314,819       300,144       14,675  
                             
    Average Prices (Per Mcf)                        
    Weighted Average   $ 2.69     $ 1.50     $ 1.19     $ 2.66     $ 1.93     $ 0.73  
    Weighted Average after Hedging   $ 2.71     $ 2.28     $ 0.43     $ 2.73     $ 2.45     $ 0.28  
                             
    Selected Operating Performance Statistics:                        
    General and Administrative Expense per Mcf (1)   $ 0.17     $ 0.19     $ (0.02 )   $ 0.18     $ 0.18     $ —  
    Lease Operating and Transportation Expense per Mcf (1)(2)   $ 0.66     $ 0.69     $ (0.03 )   $ 0.67     $ 0.68     $ (0.01 )
    Depreciation, Depletion and Amortization per Mcf (1)   $ 0.62     $ 0.71     $ (0.09 )   $ 0.63     $ 0.71     $ (0.08 )
    (1) Refer to page 15 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.
    (2) Amounts include transportation expense of $0.56 and $0.59 per Mcf for the three months ended June 30, 2025 and June 30, 2024, respectively. Amounts include transportation expense of $0.57 per Mcf for the nine months ended June 30, 2025 and June 30, 2024.
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                                       
    Pipeline and Storage Throughput – (millions of cubic feet – MMcf)          
                                       
        Three Months Ended   Nine Months Ended
        June 30,   June 30,
                    Increase               Increase
        2025   2024   (Decrease)   2025   2024   (Decrease)
    Firm Transportation – Affiliated   20,123     18,377     1,746     101,233     92,433     8,800  
    Firm Transportation – Non-Affiliated   158,910     150,133     8,777     515,411     498,435     16,976  
    Interruptible Transportation   149     118     31     665     1,508     (843 )
        179,182     168,628     10,554     617,309     592,376     24,933  
                                       
    Gathering Volume – (MMcf)                                  
        Three Months Ended   Nine Months Ended
        June 30,   June 30,
                    Increase               Increase
        2025   2024   (Decrease)   2025   2024   (Decrease)
    Gathered Volume   133,271     118,445     14,826     384,003     367,832     16,171  
                                       
    Utility Throughput – (MMcf)                                  
        Three Months Ended   Nine Months Ended
        June 30,   June 30,
                    Increase               Increase
        2025   2024   (Decrease)   2025   2024   (Decrease)
    Retail Sales:                                  
    Residential Sales   10,151     8,123     2,028     60,738     53,168     7,570  
    Commercial Sales   1,658     1,308     350     9,997     8,401     1,596  
    Industrial Sales   93     62     31     594     389     205  
        11,902     9,493     2,409     71,329     61,958     9,371  
    Transportation   13,853     12,819     1,034     55,881     52,984     2,897  
        25,755     22,312     3,443     127,210     114,942     12,268  


    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    NON-GAAP FINANCIAL MEASURES

    In addition to financial measures calculated in accordance with generally accepted accounting principles (GAAP), this press release contains information regarding adjusted operating results, adjusted EBITDA and free cash flow, which are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company’s ongoing operating results or liquidity and for comparing the Company’s financial performance to other companies. The Company’s management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures in accordance with GAAP.

    Management defines adjusted operating results as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel’s reported GAAP earnings to adjusted operating results for the three and nine months ended June 30, 2025 and 2024:

        Three Months Ended   Nine Months Ended
        June 30,   June 30,
    (in thousands except per share amounts)     2025       2024       2025       2024  
    Reported GAAP Earnings   $ 149,818     $ (54,158 )   $ 411,162     $ 245,134  
    Items impacting comparability:                
    Impairment of assets (E&P)     —       200,696       141,802       200,696  
    Tax impact of impairment of assets     —       (55,686 )     (37,169 )     (55,686 )
    Premiums paid on early redemption of debt (E&P / Midstream)     —       —       2,385       —  
    Tax impact of premiums paid on early redemption of debt     —       —       (642 )     —  
    Unrealized (gain) loss on derivative asset (E&P)     45       1,186       729       4,848  
    Tax impact of unrealized (gain) loss on derivative asset     (12 )     (325 )     (196 )     (1,330 )
    Unrealized (gain) loss on other investments (Corporate / All Other)     (820 )     15       1,780       (1,803 )
    Tax impact of unrealized (gain) loss on other investments     172       (3 )     (374 )     379  
    Adjusted Operating Results   $ 149,203     $ 91,725     $ 519,477     $ 392,238  
                     
    Reported GAAP Earnings Per Share   $ 1.64     $ (0.59 )   $ 4.51     $ 2.65  
    Items impacting comparability:                
    Impairment of assets, net of tax (E&P)     —       1.58       1.14       1.57  
    Premiums paid on early redemption of debt, net of tax (E&P / Midstream)     —       —       0.02       —  
    Unrealized (gain) loss on derivative asset, net of tax (E&P)     —       0.01       0.01       0.04  
    Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)     (0.01 )     —       0.02       (0.02 )
    Rounding     0.01       (0.01 )     (0.01 )     —  
    Adjusted Operating Results Per Share   $ 1.64     $ 0.99     $ 5.69     $ 4.24  

    Management defines adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability. The following tables reconcile National Fuel’s reported GAAP earnings to adjusted EBITDA for the three and nine months ended June 30, 2025 and 2024:

        Three Months Ended   Nine Months Ended
        June 30,   June 30,
    (in thousands)     2025       2024       2025       2024  
    Reported GAAP Earnings   $ 149,818     $ (54,158 )   $ 411,162     $ 245,134  
    Depreciation, Depletion and Amortization     116,408       113,454       337,055       348,179  
    Other (Income) Deductions     (8,534 )     (3,188 )     (31,486 )     (12,989 )
    Interest Expense     37,889       34,217       120,389       104,041  
    Income Taxes     51,079       (28,311 )     133,629       70,108  
    Impairment of Assets     —       200,696       141,802       200,696  
    Adjusted EBITDA   $ 346,660     $ 262,710     $ 1,112,551     $ 955,169  
                     
    Adjusted EBITDA by Segment                
    Pipeline and Storage Adjusted EBITDA   $ 67,019     $ 68,221     $ 208,140     $ 197,394  
    Gathering Adjusted EBITDA     55,923       47,631       160,607       153,795  
    Total Midstream Businesses Adjusted EBITDA     122,942       115,852       368,747       351,189  
    Exploration and Production Adjusted EBITDA     202,488       128,535       573,482       460,572  
    Utility Adjusted EBITDA     25,743       21,047       181,680       152,741  
    Corporate and All Other Adjusted EBITDA     (4,513 )     (2,724 )     (11,358 )     (9,333 )
    Total Adjusted EBITDA   $ 346,660     $ 262,710     $ 1,112,551     $ 955,169  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    NON-GAAP FINANCIAL MEASURES
    SEGMENT ADJUSTED EBITDA
        Three Months Ended   Nine Months Ended
        June 30,   June 30,
    (in thousands)     2025       2024       2025       2024  
    Exploration and Production Segment                
    Reported GAAP Earnings   $ 86,671     $ (112,028 )   $ 137,722     $ 2,521  
    Depreciation, Depletion and Amortization     68,848       68,778       196,773       214,191  
    Other (Income) Deductions     (81 )     388       (527 )     529  
    Interest Expense     13,925       14,670       46,164       45,046  
    Income Taxes     33,125       (43,969 )     51,548       (2,411 )
    Impairment of Assets     —       200,696       141,802       200,696  
    Adjusted EBITDA   $ 202,488     $ 128,535     $ 573,482     $ 460,572  
                     
    Pipeline and Storage Segment                
    Reported GAAP Earnings   $ 28,857     $ 30,690     $ 93,019     $ 85,482  
    Depreciation, Depletion and Amortization     18,601       18,453       55,733       56,157  
    Other (Income) Deductions     (2,063 )     (3,619 )     (7,802 )     (10,112 )
    Interest Expense     11,209       11,855       34,637       35,698  
    Income Taxes     10,415       10,842       32,553       30,169  
    Adjusted EBITDA   $ 67,019     $ 68,221     $ 208,140     $ 197,394  
                     
    Gathering Segment                
    Reported GAAP Earnings   $ 29,996     $ 24,979     $ 83,483     $ 82,510  
    Depreciation, Depletion and Amortization     10,848       9,732       32,197       28,800  
    Other (Income) Deductions     1       (122 )     (151 )     (285 )
    Interest Expense     3,870       3,393       13,865       10,824  
    Income Taxes     11,208       9,649       31,213       31,946  
    Adjusted EBITDA   $ 55,923     $ 47,631     $ 160,607     $ 153,795  
                     
    Utility Segment                
    Reported GAAP Earnings   $ 4,997     $ 2,559     $ 101,040     $ 73,848  
    Depreciation, Depletion and Amortization     17,945       16,373       51,908       48,678  
    Other (Income) Deductions     (5,956 )     (1,947 )     (25,367 )     (6,523 )
    Interest Expense     10,958       8,417       32,601       25,402  
    Income Taxes     (2,201 )     (4,355 )     21,498       11,336  
    Adjusted EBITDA   $ 25,743     $ 21,047     $ 181,680     $ 152,741  
                     
    Corporate and All Other                
    Reported GAAP Earnings   $ (703 )   $ (358 )   $ (4,102 )   $ 773  
    Depreciation, Depletion and Amortization     166       118       444       353  
    Other (Income) Deductions     (435 )     2,112       2,361       3,402  
    Interest Expense     (2,073 )     (4,118 )     (6,878 )     (12,929 )
    Income Taxes     (1,468 )     (478 )     (3,183 )     (932 )
    Adjusted EBITDA   $ (4,513 )   $ (2,724 )   $ (11,358 )   $ (9,333 )

    Management defines free cash flow as net cash provided by operating activities, less net cash used in investing activities, adjusted for acquisitions and divestitures. The Company is unable to provide a reconciliation of any projected free cash flow measure to its comparable GAAP financial measure without unreasonable efforts. This is due to an inability to calculate the comparable GAAP projected metrics, including operating income and total production costs, given the unknown effect, timing, and potential significance of certain income statement items.

    The MIL Network –

    July 31, 2025

  • MIL-OSI Economics: Microsoft Cloud and AI strength fuels fourth quarter results

    Source: Microsoft

    Headline: Microsoft Cloud and AI strength fuels fourth quarter results

    REDMOND, Wash. — July 30, 2025 — Microsoft Corp. today announced the following results for the quarter ended June 30, 2025, as compared to the corresponding period of last fiscal year:

    • Revenue was $76.4 billion and increased 18% (up 17% in constant currency)
    • Operating income was $34.3 billion and increased 23% (up 22% in constant currency)
    • Net income was $27.2 billion and increased 24% (up 22% in constant currency)
    • Diluted earnings per share was $3.65 and increased 24% (up 22% in constant currency)

    “Cloud and AI is the driving force of business transformation across every industry and sector,” said Satya Nadella, chairman and chief executive officer of Microsoft. “We’re innovating across the tech stack to help customers adapt and grow in this new era, and this year, Azure surpassed $75 billion in revenue, up 34 percent, driven by growth across all workloads.”

    “We closed out the fiscal year with a strong quarter, highlighted by Microsoft Cloud revenue reaching $46.7 billion, up 27% (up 25% in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

    Business Highlights

    Revenue in Productivity and Business Processes was $33.1 billion and increased 16% (up 14% in constant currency), with the following business highlights:

    • Microsoft 365 Commercial products and cloud services revenue increased 16% (up 15% in constant currency) driven by Microsoft 365 Commercial cloud revenue growth of 18% (up 16% in constant currency)
    • Microsoft 365 Consumer products and cloud services revenue increased 21% driven by Microsoft 365 Consumer cloud revenue growth of 20%
    • LinkedIn revenue increased 9% (up 8% in constant currency)
    • Dynamics products and cloud services revenue increased 18% (up 17% in constant currency) driven by Dynamics 365 revenue growth of 23% (up 21% in constant currency)

    Revenue in Intelligent Cloud was $29.9 billion and increased 26% (up 25% in constant currency), with the following business highlights:

    • Server products and cloud services revenue increased 27% driven by Azure and other cloud services revenue growth of 39%

    Revenue in More Personal Computing was $13.5 billion and increased 9%, with the following business highlights:

    • Windows OEM and Devices revenue increased 3%
    • Xbox content and services revenue increased 13% (up 12% in constant currency)
    • Search and news advertising revenue excluding traffic acquisition costs increased 21% (up 20% in constant currency)

    Microsoft returned $9.4 billion to shareholders in the form of dividends and share repurchases in the fourth quarter of fiscal year 2025.

    Fiscal Year 2025 Results

    Microsoft Corp. today announced the following results for the fiscal year ended June 30, 2025, as compared to the corresponding period of last fiscal year:

    • Revenue was $281.7 billion and increased 15%
    • Operating income was $128.5 billion and increased 17% (up 18% in constant currency)
    • Net income was $101.8 billion and increased 16% (up 15% in constant currency)
    • Diluted earnings per share was $13.64 and increased 16%

    Business Outlook

    Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

    Quarterly Highlights, Product Releases, and Enhancements 

    Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.

    Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.

    Webcast Details

    Satya Nadella, chairman and chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, corporate secretary and deputy general counsel, and Jonathan Neilson, vice president of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on July 30, 2026.

    Constant Currency

    Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

    Financial Performance Constant Currency Reconciliation

      Three Months Ended June 30,  
     ($ in millions, except per share amounts) Revenue Operating Income Net Income Diluted Earnings per Share
    2024 As Reported (GAAP) $64,727 $27,925 $22,036 $2.95
    2025 As Reported (GAAP) $76,441 $34,323 $27,233 $3.65
    Percentage Change Y/Y (GAAP) 18% 23% 24% 24%
    Constant Currency Impact $619 $326 $356 $0.05
    Percentage Change Y/Y Constant Currency 17% 22% 22% 22%
      Twelve Months Ended June 30,  
     ($ in millions, except per share amounts) Revenue Operating Income Net Income Diluted Earnings per Share
    2024 As Reported (GAAP) $245,122 $109,433 $88,136 $11.80
    2025 As Reported (GAAP) $281,724 $128,528 $101,832 $13.64
    Percentage Change Y/Y (GAAP) 15% 17% 16% 16%
    Constant Currency Impact $(485) $(351) $56 $0.01
    Percentage Change Y/Y Constant Currency 15% 18% 15% 16%

    Segment Revenue Constant Currency Reconciliation

      Three Months Ended June 30,
     ($ in millions) Productivity and Business Processes Intelligent Cloud More Personal Computing
    2024 As Reported (GAAP) $28,627 $23,785 $12,315
    2025 As Reported (GAAP) $33,112 $29,878 $13,451
    Percentage Change Y/Y (GAAP) 16% 26% 9%
    Constant Currency Impact $368 $184 $67
    Percentage Change Y/Y Constant Currency 14% 25% 9%

    We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

    Selected Product and Service Revenue Constant Currency Reconciliation           

      Three Months Ended June 30, 2025
    Percentage Change Y/Y (GAAP) Constant Currency Impact Percentage Change Y/Y Constant Currency
    Microsoft Cloud 27% (2)% 25%
    Microsoft 365 Commercial products and cloud services 16% (1)% 15%
    Microsoft 365 Commercial cloud 18% (2)% 16%
    Microsoft 365 Consumer products and cloud services 21% 0% 21%
    Microsoft 365 Consumer cloud 20% 0% 20%
    LinkedIn 9% (1)% 8%
    Dynamics products and cloud services 18% (1)% 17%
    Dynamics 365 23% (2)% 21%
    Server products and cloud services 27% 0% 27%
    Azure and other cloud services 39% 0% 39%
    Windows OEM and Devices 3% 0% 3%
    Xbox content and services 13% (1)% 12%
    Search and news advertising excluding traffic acquisition costs 21% (1)% 20%

    About Microsoft

    Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

    Forward-Looking Statements

    Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

    • intense competition in all of our markets that could adversely affect our results of operations;
    • focus on cloud-based and AI services presenting execution and competitive risks;
    • significant investments in products and services that may not achieve expected returns;
    • acquisitions, joint ventures, and strategic alliances that could have an adverse effect on our business;
    • cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position;
    • disclosure and misuse of personal data that could cause liability and harm to our reputation;
    • the possibility that we may not be able to protect information in our products and services from use by others;
    • abuse of our advertising, professional, marketplace, or gaming platforms that may harm our reputation or user engagement;
    • products and services, how they are used by customers, and how third-party products and services interact with them, presenting security, privacy, and execution risks;
    • issues about the use of AI in our offerings that may result in reputational or competitive harm, or liability;
    • excessive outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;
    • supply or quality problems;
    • potential consequences of new, existing, and evolving legal and regulatory requirements;
    • claims against us that could result in adverse outcomes in legal disputes;
    • uncertainties relating to our business with government customers;
    • additional tax liabilities;
    • an inability to protect and utilize our intellectual property may harm our business and operating results;
    • claims that Microsoft has infringed the intellectual property rights of others;
    • damage to our reputation or our brands that may harm our business and results of operations;
    • adverse economic or market conditions that could harm our business;
    • catastrophic events or geopolitical conditions, such as the COVID-19 pandemic, that could disrupt our business;
    • exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange; and
    • the dependence of our business on our ability to attract and retain talented employees.

    For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

    All information in this release is as of June 30, 2025. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

    For more information, press only:

    Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, [email protected]

    For more information, financial analysts and investors only:

    Jonathan Neilson, Vice President, Investor Relations, (425) 706-4400

    Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.

    MIL OSI Economics –

    July 31, 2025

  • MIL-OSI Banking: Microsoft Cloud and AI strength fuels fourth quarter results

    Source: Microsoft

    Headline: Microsoft Cloud and AI strength fuels fourth quarter results

    Microsoft Cloud and AI Strength Fuels Fourth Quarter Results

    REDMOND, Wash. — July 30, 2025 — Microsoft Corp. today announced the following results for the quarter ended June 30, 2025, as compared to the corresponding period of last fiscal year:

    ·        Revenue was $76.4 billion and increased 18% (up 17% in constant currency)

    ·        Operating income was $34.3 billion and increased 23% (up 22% in constant currency)

    ·        Net income was $27.2 billion and increased 24% (up 22% in constant currency)

    ·        Diluted earnings per share was $3.65 and increased 24% (up 22% in constant currency)

    “Cloud and AI is the driving force of business transformation across every industry and sector,” said Satya Nadella, chairman and chief executive officer of Microsoft. “We’re innovating across the tech stack to help customers adapt and grow in this new era, and this year, Azure surpassed $75 billion in revenue, up 34 percent, driven by growth across all workloads.”

    “We closed out the fiscal year with a strong quarter, highlighted by Microsoft Cloud revenue reaching $46.7 billion, up 27% (up 25% in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

    Business Highlights

    Revenue in Productivity and Business Processes was $33.1 billion and increased 16% (up 14% in constant currency), with the following business highlights:

    ·        Microsoft 365 Commercial products and cloud services revenue increased 16% (up 15% in constant currency) driven by Microsoft 365 Commercial cloud revenue growth of 18% (up 16% in constant currency)

    ·        Microsoft 365 Consumer products and cloud services revenue increased 21% driven by Microsoft 365 Consumer cloud revenue growth of 20%

    ·        LinkedIn revenue increased 9% (up 8% in constant currency)

    ·        Dynamics products and cloud services revenue increased 18% (up 17% in constant currency) driven by Dynamics 365 revenue growth of 23% (up 21% in constant currency)

    Revenue in Intelligent Cloud was $29.9 billion and increased 26% (up 25% in constant currency), with the following business highlights:

    ·        Server products and cloud services revenue increased 27% driven by Azure and other cloud services revenue growth of 39%

    Revenue in More Personal Computing was $13.5 billion and increased 9%, with the following business highlights:

    ·        Windows OEM and Devices revenue increased 3%

    ·        Xbox content and services revenue increased 13% (up 12% in constant currency)

    ·        Search and news advertising revenue excluding traffic acquisition costs increased 21% (up 20% in constant currency)

    Microsoft returned $9.4 billion to shareholders in the form of dividends and share repurchases in the fourth quarter of fiscal year 2025.

    Fiscal Year 2025 Results

    Microsoft Corp. today announced the following results for the fiscal year ended June 30, 2025, as compared to the corresponding period of last fiscal year:

    ·        Revenue was $281.7 billion and increased 15%

    ·        Operating income was $128.5 billion and increased 17% (up 18% in constant currency)

    ·        Net income was $101.8 billion and increased 16% (up 15% in constant currency)

    ·        Diluted earnings per share was $13.64 and increased 16%

    Business Outlook

    Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

    Quarterly Highlights, Product Releases, and Enhancements 

    Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.

    Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.

    Webcast Details

    Satya Nadella, chairman and chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, corporate secretary and deputy general counsel, and Jonathan Neilson, vice president of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on July 30, 2026.

    Constant Currency

    Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

    Financial Performance Constant Currency Reconciliation

     

    Three Months Ended June 30,

     

     ($ in millions, except per share amounts)

    Revenue

    Operating Income

    Net Income

    Diluted Earnings per Share

    2024 As Reported (GAAP)

    $64,727

    $27,925

    $22,036

    $2.95

    2025 As Reported (GAAP)

    $76,441

    $34,323

    $27,233

    $3.65

    Percentage Change Y/Y (GAAP)

    18%

    23%

    24%

    24%

    Constant Currency Impact

    $619

    $326

    $356

    $0.05

    Percentage Change Y/Y Constant Currency

    17%

    22%

    22%

    22%

     

     

    Twelve Months Ended June 30,

     

     ($ in millions, except per share amounts)

    Revenue

    Operating Income

    Net Income

    Diluted Earnings per Share

    2024 As Reported (GAAP)

    $245,122

    $109,433

    $88,136

    $11.80

    2025 As Reported (GAAP)

    $281,724

    $128,528

    $101,832

    $13.64

    Percentage Change Y/Y (GAAP)

    15%

    17%

    16%

    16%

    Constant Currency Impact

    $(485)

    $(351)

    $56

    $0.01

    Percentage Change Y/Y Constant Currency

    15%

    18%

    15%

    16%

     

    Segment Revenue Constant Currency Reconciliation

     

    Three Months Ended June 30,

     ($ in millions)

    Productivity and Business Processes

    Intelligent Cloud

    More Personal Computing

    2024 As Reported (GAAP)

    $28,627

    $23,785

    $12,315

    2025 As Reported (GAAP)

    $33,112

    $29,878

    $13,451

    Percentage Change Y/Y (GAAP)

    16%

    26%

    9%

    Constant Currency Impact

    $368

    $184

    $67

    Percentage Change Y/Y Constant Currency

    14%

    25%

    9%

    We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

     

     

     

    Selected Product and Service Revenue Constant Currency Reconciliation           

     

    Three Months Ended June 30, 2025

    Percentage Change Y/Y (GAAP)

    Constant Currency Impact

    Percentage Change Y/Y Constant Currency

    Microsoft Cloud

    27%

    (2)%

    25%

    Microsoft 365 Commercial products and cloud services

    16%

    (1)%

    15%

    Microsoft 365 Commercial cloud

    18%

    (2)%

    16%

    Microsoft 365 Consumer products and cloud services

    21%

    0%

    21%

    Microsoft 365 Consumer cloud

    20%

    0%

    20%

    LinkedIn

    9%

    (1)%

    8%

    Dynamics products and cloud services

    18%

    (1)%

    17%

    Dynamics 365

    23%

    (2)%

    21%

    Server products and cloud services

    27%

    0%

    27%

    Azure and other cloud services

    39%

    0%

    39%

    Windows OEM and Devices

    3%

    0%

    3%

    Xbox content and services

    13%

    (1)%

    12%

    Search and news advertising excluding traffic acquisition costs

    21%

    (1)%

    20%

     

    About Microsoft

    Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

    Forward-Looking Statements

    Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

    ·        intense competition in all of our markets that could adversely affect our results of operations;

    ·        focus on cloud-based and AI services presenting execution and competitive risks;

    ·        significant investments in products and services that may not achieve expected returns;

    ·        acquisitions, joint ventures, and strategic alliances that could have an adverse effect on our business;

    ·        cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position;

    ·        disclosure and misuse of personal data that could cause liability and harm to our reputation;

    ·        the possibility that we may not be able to protect information in our products and services from use by others;

    ·        abuse of our advertising, professional, marketplace, or gaming platforms that may harm our reputation or user engagement;

    ·        products and services, how they are used by customers, and how third-party products and services interact with them, presenting security, privacy, and execution risks;

    ·        issues about the use of AI in our offerings that may result in reputational or competitive harm, or liability;

    ·        excessive outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;

    ·        supply or quality problems;

    ·        potential consequences of new, existing, and evolving legal and regulatory requirements;

    ·        claims against us that could result in adverse outcomes in legal disputes;

    ·        uncertainties relating to our business with government customers;

    ·        additional tax liabilities;

    ·        an inability to protect and utilize our intellectual property may harm our business and operating results;

    ·        claims that Microsoft has infringed the intellectual property rights of others;

    ·        damage to our reputation or our brands that may harm our business and results of operations;

    ·        adverse economic or market conditions that could harm our business;

    ·        catastrophic events or geopolitical conditions, such as the COVID-19 pandemic, that could disrupt our business;

    ·        exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange; and

    ·        the dependence of our business on our ability to attract and retain talented employees.

    For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

    All information in this release is as of June 30, 2025. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

    For more information, press only:

    Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, rrt@we-worldwide.com

    For more information, financial analysts and investors only:

    Jonathan Neilson, Vice President, Investor Relations, (425) 706-4400

    Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.

     


     

    MICROSOFT CORPORATION

    INCOME STATEMENTS

    (In millions, except per share amounts) (Unaudited)

    Three Months Ended

     June 30,

    Twelve Months Ended

     June 30,

     

    2025

     

    2024

     

    2025

     

    2024

    Revenue:

    Product

     $17,136

     $13,217

     $63,946

     $64,773

    Service and other

    59,305

     

    51,510

     

    217,778

     

    180,349

    Total revenue

    76,441

     

    64,727

     

    281,724

     

    245,122

    Cost of revenue:

    Product

    3,314

    1,438

    13,501

    15,272

    Service and other

    20,700

     

    18,246

     

    74,330

     

    58,842

    Total cost of revenue

    24,014

     

    19,684

     

    87,831

     

    74,114

    Gross margin

    52,427

    45,043

    193,893

    171,008

    Research and development

    8,829

    8,056

    32,488

    29,510

    Sales and marketing

    7,285

    6,816

    25,654

    24,456

    General and administrative

    1,990

    2,246

    7,223

    7,609

    Operating income

    34,323

     

    27,925

     

    128,528

     

    109,433

    Other expense, net

    (1,707)

     

    (675)

     

    (4,901)

     

    (1,646)

    Income before income taxes

    32,616

    27,250

    123,627

    107,787

    Provision for income taxes

    5,383

     

    5,214

     

    21,795

     

    19,651

    Net income

     $27,233

     

     $22,036

     

     $101,832

     

     $88,136

    Earnings per share:

    Basic

     $3.66

     $2.96

     $13.70

     $11.86

    Diluted

     $3.65

     $2.95

     $13.64

     $11.80

    Weighted average shares outstanding:

    Basic

    7,432

    7,433

    7,433

    7,431

    Diluted

    7,461

     

    7,472

     

    7,465

     

    7,469

     


     

    COMPREHENSIVE INCOME STATEMENTS

    (In millions) (Unaudited)

    Three Months Ended

     June 30,

    Twelve Months Ended

     June 30,

     

    2025

     

    2024

     

    2025

     

    2024

    Net income

     $27,233

     

     $22,036

     

     $101,832

     

     $88,136

    Other comprehensive income (loss), net of tax:

    Net change related to derivatives

    (9)

    (4)

    (5)

    24

    Net change related to investments

    444

    88

    1,574

    957

    Translation adjustments and other

    1,051

     

    (239)

     

    674

     

    (228)

    Other comprehensive income (loss)

    1,486

     

    (155)

     

    2,243

     

    753

    Comprehensive income

     $28,719

     

     $21,881

     

     $104,075

     

     $88,889

     


     

    BALANCE SHEETS

    (In millions) (Unaudited)

     

    June 30,

    2025

    June 30,

     2024

    Assets

    Current assets:

    Cash and cash equivalents

     $30,242

     $18,315

    Short-term investments

    64,323

    57,228

    Total cash, cash equivalents, and short-term investments

    94,565

    75,543

    Accounts receivable, net of allowance for doubtful accounts of $944 and $830

    69,905

    56,924

    Inventories

    938

    1,246

    Other current assets

    25,723

    26,021

    Total current assets

    191,131

    159,734

    Property and equipment, net of accumulated depreciation of $93,653 and $76,421

    204,966

    135,591

    Operating lease right-of-use assets

    24,823

    18,961

    Equity and other investments

    15,405

    14,600

    Goodwill

    119,509

    119,220

    Intangible assets, net

    22,604

    27,597

    Other long-term assets

    40,565

    36,460

    Total assets

     $619,003

     $512,163

    Liabilities and stockholders’ equity

    Current liabilities:

    Accounts payable

     $27,724

     $21,996

    Short-term debt

    0

    6,693

    Current portion of long-term debt

    2,999

    2,249

    Accrued compensation

    13,709

    12,564

    Short-term income taxes

    7,211

    5,017

    Short-term unearned revenue

    64,555

    57,582

    Other current liabilities

    25,020

    19,185

    Total current liabilities

    141,218

    125,286

    Long-term debt

    40,152

    42,688

    Long-term income taxes

    25,986

    27,931

    Long-term unearned revenue

    2,710

    2,602

    Deferred income taxes

    2,835

    2,618

    Operating lease liabilities

    17,437

    15,497

    Other long-term liabilities

    45,186

    27,064

    Total liabilities

    275,524

    243,686

    Commitments and contingencies

    Stockholders’ equity:

    Common stock and paid-in capital – shares authorized 24,000; outstanding 7,434 and 7,434

    109,095

    100,923

    Retained earnings

    237,731

    173,144

    Accumulated other comprehensive loss

    (3,347)

    (5,590)

    Total stockholders’ equity

    343,479

    268,477

    Total liabilities and stockholders’ equity

     $619,003

     $512,163

     


     

    CASH FLOWS STATEMENTS

    (In millions) (Unaudited)

    Three Months Ended

     June 30,

    Twelve Months Ended

     June 30,

     

    2025

     

    2024

     

    2025

     

    2024

    Operations

    Net income

     $27,233

     $22,036

     $101,832

     $88,136

    Adjustments to reconcile net income to net cash from operations:

    Depreciation, amortization, and other

    11,203

    6,380

    34,153

    22,287

    Stock-based compensation expense

    3,073

    2,696

    11,974

    10,734

    Net recognized losses on investments and derivatives

    56

    44

    609

    305

    Deferred income taxes

    (2,221)

    (1,145)

    (7,056)

    (4,738)

    Changes in operating assets and liabilities:

    Accounts receivable

    (16,179)

    (13,246)

    (10,581)

    (7,191)

    Inventories

    (81)

    55

    309

    1,284

    Other current assets

    (3,686)

    (2,528)

    (3,044)

    (1,648)

    Other long-term assets

    418

    (1,240)

    (2,950)

    (6,817)

    Accounts payable

    (652)

    4,204

    569

    3,545

    Unearned revenue

    18,361

    15,657

    5,438

    5,348

    Income taxes

    1,043

    (806)

    (38)

    1,687

    Other current liabilities

    5,346

    4,652

    5,922

    4,867

    Other long-term liabilities

    (1,267)

     

    436

     

    (975)

     

    749

    Net cash from operations

    42,647

     

    37,195

     

    136,162

     

    118,548

    Financing

    Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net

    0

    (1,142)

    (5,746)

    5,250

    Proceeds from issuance of debt

    0

    197

    0

    24,395

    Repayments of debt

    0

    (13,065)

    (3,216)

    (29,070)

    Common stock issued

    548

    534

    2,056

    2,002

    Common stock repurchased

    (4,546)

    (4,210)

    (18,420)

    (17,254)

    Common stock cash dividends paid

    (6,169)

    (5,574)

    (24,082)

    (21,771)

    Other, net

    (677)

     

    (303)

     

    (2,291)

     

    (1,309)

    Net cash used in financing

    (10,844)

     

    (23,563)

     

    (51,699)

     

    (37,757)

    Investing

    Additions to property and equipment

    (17,079)

    (13,873)

    (64,551)

    (44,477)

    Acquisition of companies, net of cash acquired and divestitures, and purchases of intangible and other assets

    (1,743)

    (1,342)

    (5,978)

    (69,132)

    Purchases of investments

    (21,631)

    (2,831)

    (29,775)

    (17,732)

    Maturities of investments

    4,618

    1,557

    16,079

    24,775

    Sales of investments

    2,621

    2,023

    9,309

    10,894

    Other, net

    2,642

    (382)

    2,317

    (1,298)

    Net cash used in investing

    (30,572)

     

    (14,848)

     

    (72,599)

     

    (96,970)

    Effect of foreign exchange rates on cash and cash equivalents

    183

     

    (103)

     

    63

     

    (210)

    Net change in cash and cash equivalents

    1,414

    (1,319)

    11,927

    (16,389)

    Cash and cash equivalents, beginning of period

    28,828

     

    19,634

     

    18,315

     

    34,704

    Cash and cash equivalents, end of period

     $30,242

     

     $18,315

     

     $30,242

     

     $18,315


     


    SEGMENT REVENUE AND OPERATING INCOME

    (In millions) (Unaudited)

     

    Three Months Ended

     June 30,

     

    Twelve Months Ended

     June 30,

     

     

     

    2025

     

    2024

     

    2025

     

    2024

    Revenue

     

     

     

     

     

     

     

    Productivity and Business Processes

    $33,112

     

    $28,627

     

    $120,810

     

    $106,820

    Intelligent Cloud

    29,878

     

    23,785

     

    106,265

     

    87,464

    More Personal Computing

    13,451

     

    12,315

     

    54,649

     

    50,838

    Total

    $76,441

     

    $64,727

     

    $281,724

     

    $245,122

    Operating Income

     

     

     

     

     

     

     

    Productivity and Business Processes

    $18,993

     

    $15,706

     

     $69,773

     

     $59,661

    Intelligent Cloud

    12,140

     

    9,835

     

    44,589

     

    37,813

    More Personal Computing

    3,190

     

    2,384

     

    14,166

     

    11,959

    Total

    $34,323

     

    $27,925

     

    $128,528

     

    $109,433

     

    We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

     

    MIL OSI Global Banks –

    July 31, 2025

  • MIL-Evening Report: Progress on Closing the Gap is stagnant or going backwards. Here are 3 things to help fix it

    Source: The Conversation (Au and NZ) – By Madeleine Pugin, Research Fellow, School of Government and International Relations, Griffith University

    The Productivity Commission’s latest data on Closing the Gap progress represents an unsurprisingly grim overview of the socioeconomic inequalities experienced by Aboriginal and Torres Strait Islander peoples.

    Closing the Gap is the plan federal and state governments have to address Indigenous socioeconomic disadvantage. It sets specific targets across a range of areas.

    This edition annual data report paints a concerning picture of Indigenous peoples’ quality of life across the states and territories. Despite 17 years of Closing the Gap policy, First Nations communities continue to face significant disadvantage. Of the 19 targets, 16 have been assessed, with four targets worsening. They are:

    • adult imprisonment

    • children in out-of-home care

    • suicide

    • children developmentally on track.

    There have been some successes. Four targets are on track to be met: preschool enrolment, employment, and land and water rights. Although the latter targets are likely to be achieved, the Queensland and Northern Territory governments are walking away from plans for Treaty. This could undercut efforts for increased Indigenous rights recognition.

    There is also improvement in six other target areas, but they are still not on track to be met by 2031:

    • life expectancy

    • healthy birthweights

    • year 12 or equivalent qualifications

    • youth engagement

    • appropriately sized housing.

    Time for change

    Year after year, Closing the Gap reporting offers little hope for meaningful change. It also falls short of providing crucial insights into what is working, what isn’t, and where resources and expertise should be directed to address unmet targets.

    We must ask ourselves: when is it time to pursue a different approach?

    These are complex issues with no simple solutions, but that must not deter us from pursuing every possible avenue for change. As the worsening suicide target shows, lives depend on it.

    Nonetheless, there is little evidence to suggest governments are being impelled to act on the transformational changes required to implement the four priority reforms.

    Since the failed Voice referendum, there has been little will from all levels of government to radically transform their way of working with First Nations communities. The gaps in outcomes are unlikely to close with this business-as-usual approach.

    So what could be changed to help improve the lives of Indigenous people? Here are three ideas.

    1. A national action plan, driven by human rights

    Australia has no comprehensive Indigenous rights framework. Currently, recognition of Indigenous rights in existing Australian laws is “piecemeal” and inconsistent across jurisdictions.

    Adopting a rights-based approach to the Closing the Gap framework could provide one way forward. The realisation of rights is central to genuine self-determination for Indigenous peoples.

    The United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), which Australia endorsed in 2009, outlines the minimum standards of human rights relating to Indigenous peoples.

    A 2023 report looking at how UNDRIP works in Australia contains a list of recommendations, with the first being:

    that the Commonwealth Government ensure its approach to developing legislation and policy on matters relating to Aboriginal and Torres Strait Islander people (including, but not limited to, Closing the Gap initiatives) be consistent with the Articles outlined in the United Nations Declaration on the Rights of Indigenous Peoples.

    UNDRIP’s core principals of self-determination and participation in decision-making directly align with what communities and experts have been calling for on Closing the Gap reform. At a minimum, the federal government should meaningfully negotiate a national action plan to implement the declaration.

    Such a plan would help drive community-led solutions, empowering Indigenous peoples at local and regional levels. Bottom-up grassroots approaches are vital to Closing the Gap.

    2. An independent oversight body

    Despite the failure of the Voice referendum, an independent representative body is still needed at the national level. It would provide strategic oversight and accountability for implementation of the Closing the Gap policy at the local and regional levels.

    This body could also provide much-needed political and policy advocacy to hold governments to their commitments.

    There is the National Agreement on Closing the Gap, which Commonwealth, state, territory governments are a party to, as well as the Coalition of Peak Indigenous bodies and the Australian Local Government Association.

    Yet some governments are enacting policies and laws which are inconsistent with the agreement. Queensland and the Northern Territory, for instance, have ceased involvement in Treaty processes and turned toward stricter penalties in response to youth offending – moves criticised by human rights commissions.

    An independent representative body would help shed light on these inconsistencies and better hold governments accountable.

    3. A bigger role for local government

    What is often missing from the conversation is the crucial role local governments play in implementing policies that shape outcomes on the ground.

    As frontline service providers, local governments are positioned to engage with communities on a direct, day-to-day basis, which can be responsive to the everyday needs of Aboriginal and Torres Strait Islander peoples.

    In a first for local implementation of Closing the Gap, Tamworth Aboriginal Community Controlled Organisations and Tamworth Regional Council entered an agreement to work together towards addressing key aspects of initiative.



    Read more:
    Local solution to Closing the Gap – council takes pioneering new approach to Indigenous disadvantage

    There are strong reasons for local governments to take a more central leadership role in trying to meet the Closing the Gap targets. To do so effectively, however, they require adequate resourcing and sustained funding to support community-driven programs.

    Additionally, embedding Indigenous rights and interests in local government planning and policy would significantly enhance their capacity to contribute meaningfully.

    Bartholomew Stanford receives funding from the Australian Research Council (ARC).

    Madeleine Pugin 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. Progress on Closing the Gap is stagnant or going backwards. Here are 3 things to help fix it – https://theconversation.com/progress-on-closing-the-gap-is-stagnant-or-going-backwards-here-are-3-things-to-help-fix-it-262042

    MIL OSI Analysis – EveningReport.nz –

    July 31, 2025

  • MIL-Evening Report: Big tech says AI could boost Australia’s economy by $115 billion a year. Does the evidence stack up?

    Source: The Conversation (Au and NZ) – By Uri Gal, Professor in Business Information Systems, University of Sydney

    Imaginima / Getty Images

    AI is on the agenda in Canberra. In August, the Productivity Commission will release an interim report on harnessing data and digital technology such as AI “to boost productivity growth, accelerate innovation and improve government services”. Shortly afterward, the government will host an Economic Reform Roundtable where AI policy will be up for discussion.

    AI developers are aggressively pursuing influence over the new rules. The Chinese government wants to include AI in trade deals. Meanwhile, as the US government seeks to “win the AI race”, US-based tech companies are making their own overtures.

    The most ambitious intervention has come from ChatGPT developer OpenAI, which recently hired former Tech Council chief executive Kate Pounder as its local policy liaison. Pounder is also a former business partner of Assistant Minister for the Digital Economy Andrew Charlton.

    OpenAI’s AI Economic Blueprint for Australia makes bold projections about the new technology’s impact on the country’s economy, accompanied by a host of policy proposals. However, these claims warrant careful scrutiny, particularly given the company’s clear commercial interests in shaping Australian regulation.

    The gap between promise and evidence

    OpenAI claims AI could boost Australia’s economy by A$115 billion annually by 2030. It attributes most of this to productivity gains in business, education and government. However, the supporting evidence is thin.

    For instance, the report notes Australian workers have lower productivity than their US counterparts and then claims (without evidence) this is because Australia has invested less in digital technologies such as AI. However, it ignores numerous other factors affecting productivity, from industrial structure to regulatory environments.

    The report also describes supposed AI-driven productivity gains in companies such as Moderna and Canva. However, these narratives lack any data about improved organisational or individual performance.

    Perhaps more concerning is the report’s uniformly optimistic tone, which overlooks significant risks. These include organisations struggling with costly AI projects, massive job displacements, worsening labour conditions, and concentrating wealth.

    Most problematically, OpenAI’s blueprint assumes AI adoption and its economic benefits will materialise rapidly across the economy. However, evidence suggests a different reality.

    Economic impact from AI will unfold gradually

    Recent evidence suggests AI’s economic impact may take decades to fully materialise. Studies report some 40% of US adults use generative AI yet this translates to less than 5% of work hours and an increase of less than 1% in labour productivity.

    AI may not spread much faster than past technologies. The limiting factor will be how quickly individuals, organisations and institutions can adapt.

    Even when AI tools are available, meaningful adoption requires time. People must develop new skills, change the way they work, and integrate the new technologies into complex organisations. The economic impacts of earlier general-purpose technologies such as computers and the internet took decades to fully materialise, and there’s little reason to believe AI will be fundamentally different.

    The educational risk

    Like Google, OpenAI is also aggressively pushing for AI adoption in education. It has teamed up with edtech companies and launched a new “study mode” in ChatGPT.

    The push for AI tutoring and automated educational tools raises profound concerns about human development and learning.

    Early evidence suggests over-reliance on AI tools may condition people to depend on them. When students routinely turn to AI, they risk avoiding the mental effort required to build critical thinking skills, creativity and independent inquiry. These capacities form the foundation of a thriving democracy and innovative economy.

    Students who become accustomed to AI-assisted thinking may struggle to develop intellectual independence. This is needed for innovation, ethical reasoning and creative problem-solving.

    AI applications that help teachers personalise instruction or identify learning gaps may be useful. But systems that substitute for students’ own cognitive effort and development should be avoided.

    A multi-partner infrastructure strategy

    Australia’s digital strategy will undoubtedly include significant investment in AI infrastructure such as data centres. One challenge for Australia is to avoid concentrating our investment around a single technology provider. Doing so would be a mistake that could compromise both economic competitiveness and national sovereignty.

    Amazon plans to spend $20 billion on local data centres. Microsoft Azure already has significant local capacity, as does Australian company NextDC. This diversity provides a foundation, but maintaining and expanding it requires deliberate policy choices.

    Maintaining multiple data centre suppliers helps keep computing power that is independent of foreign governments or single companies. This approach will give Australia more bargaining power to ensure lower prices, greener power and local skills quotas.

    Diversification provides regulatory leverage as well. Australia can enforce common security standards knowing no single supplier can threaten an investment strike.

    Australia’s AI future

    AI technology is developing rapidly, driven by large corporations wielding vast amounts of capital and political influence. It presents real opportunities for economic growth and social benefit that Australia can’t afford to squander.

    However, if the government uncritically accepts corporate advocacy, these opportunities may be captured by foreign interests.

    Australia’s approach to AI policy should maintain human-centred values alongside technological advancement. This balance requires resisting the siren call of corporate promises.

    The decisions made today will shape Australia’s future for decades. These choices should be guided by independent analysis, empirical evidence, and a commitment to outcomes for all Australians.

    The Australian government must resist the temptation to let Silicon Valley write our digital future, no matter how persuasive their lobbyists or how impressive their promises. The stakes are simply too high to get this wrong.

    Uri Gal 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. Big tech says AI could boost Australia’s economy by $115 billion a year. Does the evidence stack up? – https://theconversation.com/big-tech-says-ai-could-boost-australias-economy-by-115-billion-a-year-does-the-evidence-stack-up-260705

    MIL OSI Analysis – EveningReport.nz –

    July 31, 2025

  • MIL-OSI United Kingdom: Time to pay up: Toughest crackdown on late payments in a generation unveiled in plan to back small businesses

    Source: United Kingdom – Government Statements

    Press release

    Time to pay up: Toughest crackdown on late payments in a generation unveiled in plan to back small businesses

    UK Government unveils its Small Business Plan to support SMEs across the country

    • Government to tackle late payments with the most significant legislative reforms in 25 years – an issue that costs the UK economy £11bn a year and shuts down 38 businesses every day
    • UK set to have the toughest late payments laws in the G7 as part of reforms to back small businesses and unlock growth as part of the Plan for Change
    • New £4bn finance boost including 69,000 Start-Up Loans to inspire the next generation of entrepreneurs and small business owners

    Small businesses across the UK will benefit from the most comprehensive support package in a generation, as the government launches a bold new plan to give small businesses the tools to thrive and drive economic growth as part of its Plan for Change.

    Small and medium sized firms employ 60% of the country’s workforce and generate £2.8 trillion in turnover. However, for too long, the odds have been stacked against small businesses.

    From tradespeople and shopkeepers to start-up founders and family-run firms, too many work hard but don’t get the backing they deserve – held back by late payments and not getting the financial backing they need within a wider system that hasn’t worked in their favour.

    That’s why the Government is taking serious action to back small businesses and give them the tools they need to grow. This builds on the solid foundation of certainty and stability this government has already delivered—through the trade deals we’ve secured, four interest rate cuts, and a long-term industrial and trade strategy that’s helping businesses plan ahead with confidence.

    At the heart of the plan is a the most significant package of reforms in a generation to tackle late payments, with plans to introduce the toughest laws on late payments in the G7.

    Late payments are one of the biggest barriers to small business growth —causing cashflow problems that stop firms from scaling up and investing in their future. Every day, hardworking businesses close their doors because they aren’t paid on time.

    The new laws are set to give stronger powers to the Small Business Commissioner to empower them to wield fines, worth potentially millions of pounds, against the biggest firms who persistently choose to pay their suppliers late.

    The Small Business Commissioner will be given new powers to carry out spot checks and enforce a 30-day invoice verification period to speed up resolutions to disputes. The upcoming legislation will also introduce maximum payment terms of 60 days, reducing to 45 days, giving firms certainty they’ll be paid on time.

    Audit committees, under the proposals, will also be legally required to scrutinise payment practices at board level, placing greater pressure on large firms to show they’re treating small suppliers fairly backed by mandatory interest charges for those who pay late.

    These changes will also save small businesses valuable time, freeing up hours currently spent chasing overdue invoices so they can focus on growing their business instead. Taken together, this will help ensure businesses are paid on time and end the scourge of late payments which costs the UK economy £11bn per year and closes down 38 UK businesses every day.

    Prime Minister Keir Starmer said:

    “From builders and electricians to freelance designers and manufacturers—too many hardworking people are being forced to spend precious hours chasing payments instead of doing what they do best – growing their businesses.

    “It’s unfair, it’s exhausting, and it’s holding Britain back. So, our message is clear: it’s time to pay up.

    “Through our Small Business Plan, we’re not only tackling the scourge of late payments once and for all, but we’re giving small business owners the backing and stability they need for their business to thrive, driving growth across the country through our Plan for Change.”

    Business and Trade Secretary Jonathan Reynolds said:   

    “This country is home to some of the brightest entrepreneurs and innovative businesses in the world, and we want to unleash their full potential by giving them back time and money to do what they do best – growing our local economies.

    “Our Small Business plan – the first in over a decade –  is slashing unnecessary admin costs, making it easier for businesses to set up shop and giving SMEs the financial backing they need.

    “This is our Plan for Change in action, putting more money in people’s pockets, boosting local communities and ensuring Britain is a great place to do business and thrive.”

    Small Business Minister Gareth Thomas said:

    “I want the UK to be the best place in the world to start a business, grow and succeed – and that’s why we’ve taken bold steps today. 

    “Too many small firms go under each year because they aren’t paid on time – that is completely unacceptable.

    “I hear all too often about businesses who just don’t have the cash needed to start up or grow. Today, we’ve announced measures as part of our Plan for Change to tackle all of those issues and beyond. This is the government listening to businesses, working with them, and delivering real change.”

    Policy Chair of the Federation of Small Businesses (FSB), Tina McKenzie, said:

    “Making sure businesses are paid on time, that our high streets thrive, and creating conditions in which everyone can start and succeed in business are crucial priorities for small businesses, communities and the economy. It’s very welcome that the Prime Minister has today made them his Government’s priorities.

     “I’m pleased that FSB and the Government have been able to work in lockstep on the bold and ambitious measures needed to tackle the scourge of late payment through legislation, and other pro-growth, pro-small business measures.

    “Today’s plan is an encouraging commitment from the Government to take the side of small businesses in the great growth challenge ahead.”

    Charlie Shaw, owner of Flock and Herd butchers in Peckham said:

    “We’re proud to pay every supplier on time and once we receive an invoice, so it’s fantastic to see the government put the Small Business Plan into place tackling the big issue of late payments.

    “We believe this is a fair and honest way to conduct business. It gives us a clear and current understanding of how our business is performing. Our relationships with our suppliers have been amazing and truly beneficial to all parties.” 

    As part of the plan, the government is also tackling another major barrier for small businesses – access to finance. Despite the UK’s world-leading financial services sector, many small firms struggle to secure the funding they need to invest, expand, or even survive.

    To address this, the Government is launching a new £4 billion wave of financial support aimed at boosting growth and supporting more small businesses to start up and grow. This includes a £1bn boost for new businesses, with 69,000 Start-Up Loans and mentoring support to inspire the next generation of entrepreneurs and small business owners.

    The Government is also going further by delivering a new £3 billion boost to the British Business Bank – raising the total guarantee to £5 billion – to help lenders offer more small business loans through the ‘ENABLE programme’. Under the scheme, the BBB provides a government-backed guarantee to help lenders feel safer when lending to smaller or newer businesses, enabling them to offer better loan terms including with lower interest.

    These measures aim to break down long-standing barriers that have made it harder for small businesses to access the funding they need to get off the ground by making finance and loans more accessible, affordable, and fair.

    Accelerating SME growth by just 1 percentage point per year, could deliver £320bn to the UK economy by 2030. All of these measures announced today back small businesses to the hilt and build on action already taken by this government to create the conditions for businesses to thrive:

    • Slashing of red tape to boost the hospitality and arts sector through hospitality zones and licensing reforms following the Licensing Taskforce co-chaired with Nick Mackenzie, Greene King CEO
    • High Street Rental Auctions to fill vacant high street premises
    • A revamped Board of Trade to get more small firms exporting around the world
    • The new Business Growth Service to ensure SMEs have access to key support
    • We’ve set out that we intend to introduce permanently lower business rates multipliers for the hard-hit retail, hospitality and leisure sector. 

    Notes to editors

    Michelle Ovens CBE, Founder, Small Business Britain, said:

    “I am thrilled to see the Small Business Plan launched today, putting the nation’s smallest businesses at the heart of Government strategy where it should be. These job creators and economy builders will benefit from a huge boost to funding through the British Business Bank, a boost to skills, support for high streets and a long hoped for legislative backing for getting paid on time. We will not see economic growth without small business growth, so I am eager to get on and help the Government deliver on this agenda – and help small businesses regardless of their background start, grow and thrive.”

    Simon Groom, CEO of MagnifyB, said: 

    “MagnifyB welcomes the UK Government’s action to tackle late payments, which will give small businesses the cash flow stability they need to thrive. Alongside this, there is a clear need to provide micro and small businesses with far more than just a repository of information, including a practical digital toolset to strengthen their operations and improve their chances of long-term success. We hope that the new Small Business Commissioner can be instrumental in bringing together ideas and championing the initiatives needed to make this support a reality.”

    Julianne Ponan MBE, Founder of Creative Nature, a small business that exports top 14 Allergen Free Baking Mixes and Snacks to 16 countries, said:

    “I’m delighted to see the government’s new SME Strategy recognising the critical role small businesses play both at home and globally. From tackling late payments to simplifying access to growth advice and support, these measures are a lifeline for SMEs like mine who often face disproportionate challenges with limited resources. I’m especially encouraged by the commitment to reduce administrative burdens by 25% and improve access to finance both are major barriers to growth for underrepresented founders, including women and ethnic minority entrepreneurs. The focus on revitalising the high street, digital skills, and exporting support shows that the government is listening to the needs of small businesses.”

    • The full plan will be published later this morning on Gov.uk We have launched a public consultation to seek views on our proposed legislative measures to ensure companies pay their suppliers quickly and on time. Please go to GOV.UK for details of the proposed measures.
    • Today’s announcement builds on the foundation of the government putting the public finances on a sustainable path – providing long-term direction, stability, and confidence for small businesses to thrive. This has paid off – interest rates have been cut four times in the last 12 months and in the first three months of 2025, Britain was the fastest growing economy in the G7.
    • The Government has also extended 40% business rates relief for 250,000 firms until April 2026 protected bills from inflation, and ensured over 700,000 properties pay no rates at all. This is creating a fairer business rates system to protect the high street, support investment, and level the playing field as we intend to introduce permanently lower tax rates for retail, hospitality, and leisure properties from next year.
    • This has included 865,000 small businesses being protected from the NICs rise because of the Employment Allowance increase to £10500, whilst 700,000 small business properties do not pay business rates at all because of Small Business Rates Relief. Corporation tax has been capped at 25% – the lowest headline rate of Corporate Tax in the G7 – for the duration of parliament.

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    Updates to this page

    Published 30 July 2025

    MIL OSI United Kingdom –

    July 31, 2025

  • MIL-OSI New Zealand: Heritage tourism boost to support local economies

    Source: New Zealand Government

    A $4.5 million investment to develop tourism at places with unique cultural heritage will help create jobs and boost incomes in rural economies, Conservation Minister Tama Potaka says. 

    “This investment over the next three years from the International Visitor Levy will expand Tohu Whenua experiences to more regions with Manawatū-Whanganui and Murihiku Southland next,” Mr Potaka says.

    “Tohu Whenua is a tourism and regional economic development programme that helps create jobs, boost incomes, and connect visitors to places with unique cultural heritage. 

    “Sites which received Tohu Whenua status previously have seen increases of up to 150 per cent in visitation in their first year in the programme.

    “Expansion of the programme across more regions will support high-quality authentic visitor experiences with enhanced storytelling, information and facilities.

    “Recently added sites include Kate Sheppard House, and Kaikōura Peninsula in Canterbury. They joined others including the Waitangi Treaty Grounds, Te Ana Ngāi Tahu Māori Rock Art Centre in Timaru, and Historic Hayes in Otago.

    “DOC is responsible for over 15,000 heritage places across New Zealand, from pā to whaling stations, light houses, WWII defences and mining relics. Tourism to these places is estimated to be worth around $1.3 billion per year.

    “I encourage everyone to look out for Tohu Whenua sites around Aotearoa New Zealand. These offer rich stories, variety and cultural exchange, encouraging visitors to stay longer in a region and delve deeper. In turn, they support local economies by spending more on attractions, accommodation, hospitality and retail.”

    Notes to editor:

    Tohu Whenua is a partnership between Heritage New Zealand Pouhere Taonga and DOC, with support from Te Puni Kōkiri, Manatū Taonga — Ministry for Culture & Heritage and the Ministry of Business, Innovation and Employment.

    Tohu Whenua currently includes 39 sites. Many of these are in public conservation areas. Launched in 2016, the programme is successfully operating in four regions:

    Northland Te Tai Tokerau (9 sites)
    Otago (12 sites)
    West Coast Te Tai Poutini (7 sites)
    Canterbury Waitaha (11 sites launched in June 2025). 

    The programme is working towards nation-wide coverage and will be rolling out to Manawatū-Whanganui and Murihiku Southland next. 

    Figures for Heritage New Zealand Pouhere Taonga properties show the increase in visitors in the first year of becoming a Tohu Whenua site: 

    Clendon House                                          61% increase
    Pompallier Mission and Printery        35% increase
    Māngungu Mission                                    156% increase
    Waitangi Treaty Grounds                        7% increase
    Historic Hayes                                            10% increase 

    MIL OSI New Zealand News –

    July 31, 2025

  • MIL-OSI: Silicon Motion Announces Results for the Period Ended June 30, 2025

    Source: GlobeNewswire (MIL-OSI)

    Business Highlights

    • Second quarter of 2025 sales increased 19% Q/Q and decreased 6% Y/Y
      • SSD controller sales: 2Q of 2025 increased 0% to 5% Q/Q and decreased 15% to 20% Y/Y
      • eMMC+UFS controller sales: 2Q of 2025 increased 40% to 45% Q/Q and increased 10% to 15% Y/Y
      • SSD solutions sales: 2Q of 2025 increased 0% to 5% Q/Q and decreased 45% to 50% Y/Y

    Financial Highlights

      2Q 2025 GAAP 2Q 2025 Non-GAAP*
     • Net sales $198.7 million (+19% Q/Q, -6% Y/Y) $198.7 million (+19% Q/Q, -6% Y/Y)
     • Gross margin 47.7% 47.7%
     • Operating margin 11.2% 12.8%
     • Earnings per diluted ADS $0.49 $0.69

    *  Please see supplemental reconciliations of U.S. Generally Accepted Accounting Principles (“GAAP”) to all non-GAAP financial measures mentioned herein towards the end of this news release.

    TAIPEI, Taiwan and MILPITAS, Calif., July 31, 2025 (GLOBE NEWSWIRE) — Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company” or “we”) today announced its financial results for the quarter ended June 30, 2025. For the second quarter of 2025, net sales (GAAP) increased sequentially to $198.7 million from $166.5 million in the first quarter of 2025. Net income (GAAP) decreased to $16.3 million, or $0.49 per diluted American depositary share (“ADS”) (GAAP), from net income (GAAP) of $19.5 million, or $0.58 per diluted ADS (GAAP), in the first quarter of 2025.

    For the second quarter of 2025, net income (non-GAAP) increased to $23.0 million, or $0.69 per diluted ADS (non-GAAP), from net income (non-GAAP) of $20.3 million, or $0.60 per diluted ADS (non-GAAP), in the first quarter of 2025.

    All financial numbers are in U.S. dollars unless otherwise noted.

    Second Quarter of 2025 Review
    “We experienced a strong recovery in our business during the second quarter of 2025 and delivered revenue well above our previously provided range,” stated Wallace Kou, President and CEO of Silicon Motion. “Our industry leading PCIe5 client SSD controller sales grew more than 75% quarter-over-quarter as AI-at-the-edge PCs are beginning to gain market traction and as white box AI server makers continue to leverage mainstream hardware components. Our eMMC and UFS products experienced strong growth during the second quarter of 2025, primarily driven by better-than-anticipated smartphone sales and market share gains. We are benefiting from increased product and market diversification and we believe that we are better positioned to deliver long-term, sustainable growth due to our expanding portfolio of leading consumer, enterprise, automotive, industrial and storage solutions.”

    Key Financial Results

    (in millions, except percentages and per ADS amounts) GAAP Non-GAAP
    2Q 2025 1Q 2025 2Q 2024 2Q 2025 1Q 2025 2Q 2024
    Revenue $198.7 $166.5 $210.7 $198.7 $166.5 $210.7
    Gross profit
       Percent of revenue    		 $94.7
    47.7%    		 $78.4
    47.1%    		 $96.8
    45.9%    		 $94.7
    47.7%    		 $78.4
    47.1%    		 $96.8
    46.0%
    Operating expenses $72.4 $68.6 $66.0 $69.3 $63.6 $62.1
    Operating income
       Percent of revenue    		 $22.3
    11.2%    		 $9.8
    5.9%    		 $30.7
    14.6%    		 $25.3
    12.8%    		 $14.9
    8.9%    		 $34.7
    16.5%
    Earnings per diluted ADS $0.49 $0.58 $0.91 $0.69 $0.60 $0.96


    Other Financial Information

    (in millions) 2Q 2025 1Q 2025 2Q 2024
    Cash, cash equivalents and restricted cash—end of period $282.3 $331.7 $343.6
    Routine capital expenditures $7.4 $7.0 $6.3
    Dividend payments $16.7 $17.0 $16.8
    Share repurchases — $24.3 —

    During the second quarter of 2025, we had $15.6 million of capital expenditures, including $7.4 million for the routine purchases of testing equipment, software, design tools and other items, and $8.2 million for building construction and improvements in Hsinchu, Taiwan.

    Returning Value to Shareholders

    On October 28, 2024, our Board of Directors declared a $2.00 per ADS annual cash dividend to be paid in quarterly installments of $0.50 per ADS. On May 22, 2025, we paid $16.7 million to Silicon Motion shareholders as the third installment of the annual cash dividend.

    On February 6, 2025, we announced that our Board of Directors had authorized a new program for the Company to repurchase up to $50 million of our ADSs over a six-month period. In the second quarter of 2025, we did not repurchase any of our ADSs.

    Business Outlook
    “Our diversification strategy is expanding our market opportunities as we continue to invest in new products and markets. In 2025, we are benefitting from the introduction of several new products including our leading 6nm, 8-channel PCIe5 client SSD controller, our new eMMC and UFS controllers, and our MicroSD controller that is selling alongside the Nintendo Switch 2. In the second half of the year, we expect to further benefit from the initial ramp of our new 6nm, 4-channel PCIe5 client SSD controller targeting the mass market in late 2025, our first MonTitan enterprise/AI-class product, and our boot drive storage products for DPU network accelerators for the greater SSD data storage ecosystem. We expect to ramp each of these products to scale in 2026 with our customers. Additionally, we continue to experience significant design win activity and demand for our leading automotive portfolio, and we expect to benefit from a mix shift to higher ASP products moving forward as customers shift to our growing portfolio of full solutions. We expect a stronger second half of the year, and we continue to target a revenue run rate of $1 billion for 2025 as we exit the year,” stated Mr. Kou.

    For the third quarter of 2025, management expects:

    ($ in millions, except percentages) GAAP Non-GAAP Adjustment Non-GAAP
    Revenue $219 to $228
    +10% to 15% Q/Q    		 — $219 to $228
    +10% to 15% Q/Q
    Gross margin 48.0% to 49.0% Approximately $0.1* 48.0% to 49.0%
    Operating margin 8.9% to 11.5% Approximately $6.5 to $7.5** 12.3% to 14.3%

    * Projected gross margin (non-GAAP) excludes $0.1 million of stock-based compensation.
    ** Projected operating margin (non-GAAP) excludes $6.5 million to $7.5 million of stock-based compensation and dispute related expenses.

    Conference Call & Webcast:

    The Company’s management team will conduct a conference call at 8:00 am Eastern Time on July 31, 2025.

    Conference Call Details
    Participants must register in advance to join the conference call using the link provided below. Conference access information (including dial-in information and a unique access PIN) will be provided in the email received upon registration.

    Participant Online Registration:
    https://register-conf.media-server.com/register/BI9e8eb8a4d35743cfa957757c6a1207e2

    A webcast of the call will be available on the Company’s website at www.siliconmotion.com.

    Discussion of Non-GAAP Financial Measures

    To supplement the Company’s unaudited consolidated financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude stock-based compensation and other items, including gross profit (non-GAAP), gross margin (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), operating margin (non-GAAP), non-operating income (expense) (non-GAAP), net income (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are not in accordance with or an alternative to GAAP and may be different from similarly-titled non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure. We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

    Our non-GAAP financial measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because they are consistent with the financial models and estimates published by many analysts who follow the Company. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with our forecasts, and for benchmarking our performance externally against our competitors. Also, when evaluating potential acquisitions, we exclude the items described below from our consideration of the target’s performance and valuation. Since we find these measures to be useful, we believe that our investors benefit from seeing the results from management’s perspective in addition to seeing our GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

    • the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;
    • the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
    • a better understanding of how management plans and measures the Company’s underlying business; and
    • an easier way to compare the Company’s operating results against analyst financial models and operating results of our competitors that supplement their GAAP results with non-GAAP financial measures.

    The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as well as the reasons for excluding each of these individual items in our reconciliation of these non-GAAP financial measures:

    Stock-based compensation expense consists of non-cash charges related to the fair value of restricted stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact of share-based compensation on its operating results.

    Restructuring charges relate to the restructuring of our underperforming product lines, principally the write-down of NAND flash, embedded DRAM and SSD inventory valuation and severance payments. 

    Dispute related expenses consist of legal, consultant, other fees and resolution related to the dispute.

    Foreign exchange loss (gain) consists of translation gains and/or losses of non-US$ denominated current assets and current liabilities, as well as certain other balance sheet items, which result from the appreciation or depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.

    Realized/Unrealized loss (gain) on investments relates to the disposal and net change in fair value of long-term investments.

    Silicon Motion Technology Corporation
    Consolidated Statements of Income
    (in thousands, except percentages and per ADS data, unaudited)
           
      For Three Months Ended   For the Six Months Ended
      Jun. 30,   Mar. 31,   Jun. 30,   Jun. 30,   Jun. 30,
      2024    2025    2025    2024    2025 
      ($)   ($)   ($)   ($)   ($)
    Net sales   210,670       166,492       198,675       399,981       365,167  
    Cost of sales   113,893       88,125       103,988       218,084       192,113  
    Gross profit   96,777       78,367       94,687       181,897       173,054  
    Operating expenses                  
    Research & development   50,788       55,026       58,147       105,180       113,173  
    Sales & marketing   6,777       7,115       7,093       13,081       14,208  
    General & administrative   7,215       6,460       7,118       13,689       13,578  
    Loss from settlement of litigation   1,250       –       –       1,250       –  
    Operating income   30,747       9,766       22,329       48,697       32,095  
    Non-operating income (expense)                  
    Interest income, net   4,175       2,929       2,706       7,241       5,635  
    Foreign exchange gain (loss), net   245       373       (3,302 )     833       (2,929 )
    Realized/Unrealized gain(loss) on investments   1,855       3,296       (1,051 )     247       2,245  
    Others, net   –       –       1       –       1  
    Subtotal   6,275       6,598       (1,646 )     8,321       4,952  
    Income before income tax   37,022       16,364       20,683       57,018       37,047  
    Income tax expense (benefit)   6,201       (3,099 )     4,372       10,181       1,273  
    Net income   30,821       19,463       16,311       46,837       35,774  
                       
    Earnings per basic ADS   0.92       0.58       0.49       1.39       1.06  
    Earnings per diluted ADS   0.91       0.58       0.49       1.39       1.06  
                       
    Margin Analysis:                  
    Gross margin   45.9 %     47.1 %     47.7 %     45.5 %     47.4 %
    Operating margin   14.6 %     5.9 %     11.2 %     12.2 %     8.8 %
    Net margin   14.6 %     11.7 %     8.2 %     11.7 %     9.8 %
                       
    Additional Data:                  
    Weighted avg. ADS equivalents   33,684       33,634       33,557       33,596       33,596  
    Diluted ADS equivalents   33,697       33,827       33,562       33,687       33,681  
                                           
    Silicon Motion Technology Corporation
    Reconciliation of GAAP to Non-GAAP Operating Results
    (in thousands, except percentages and per ADS data, unaudited)
           
      For Three Months Ended   For the Six Months Ended
      Jun. 30,   Mar. 31,   Jun. 30,   Jun. 30,   Jun. 30,
      2024       2025       2025       2024       2025  
    ($)   ($)   ($)   ($)   ($)
    Gross profit (GAAP)   96,777       78,367       94,687       181,897       173,054  
    Gross margin (GAAP)   45.9 %     47.1 %     47.7 %     45.5 %     47.4 %
    Stock-based compensation (A)   14       73       –       86       73  
    Restructuring charges   46       –       –       46       –  
    Gross profit (non-GAAP)   96,837       78,440       94,687       182,029       173,127  
    Gross margin (non-GAAP)   46.0 %     47.1 %     47.7 %     45.5 %     47.4 %
                       
    Operating expenses (GAAP)   66,030       68,601       72,358       133,200       140,959  
    Stock-based compensation (A)   (371 )     (4,738 )     (175 )     (3,464 )     (4,913 )
    Dispute related expenses   (3,527 )     (277 )     (2,841 )     (5,059 )     (3,118 )
    Operating expenses (non-GAAP)   62,132       63,586       69,342       124,677       132,928  
                       
    Operating profit (GAAP)   30,747       9,766       22,329       48,697       32,095  
    Operating margin (GAAP)   14.6 %     5.9 %     11.2 %     12.2 %     8.8 %
    Total adjustments to operating profit   3,958       5,088       3,016       8,655       8,104  
    Operating profit (non-GAAP)   34,705       14,854       25,345       57,352       40,199  
    Operating margin (non-GAAP)   16.5 %     8.9 %     12.8 %     14.3 %     11.0 %
                       
    Non-operating income (expense) (GAAP)   6,275       6,598       (1,646 )     8,321       4,952  
    Foreign exchange loss (gain), net   (245 )     (373 )     3,302       (833 )     2,929  
    Unrealized holding loss (gain) on investments   (1,855 )     (3,296 )     1,051       (247 )     (2,245 )
                       
    Non-operating income (expense) (non-GAAP)   4,175       2,929       2,707       7,241       5,636  
                       
    Net income (GAAP)   30,821       19,463       16,311       46,837       35,774  
    Total pre-tax impact of non-GAAP adjustments   1,858       1,419       7,369       7,575       8,788  
    Income tax impact of non-GAAP adjustments   (218 )     (610 )     (670 )     (365 )     (1,280 )
    Net income (non-GAAP)   32,461       20,272       23,010       54,047       43,282  
                       
    Earnings per diluted ADS (GAAP) $ 0.91     $ 0.58     $ 0.49     $ 1.39     $ 1.06  
    Earnings per diluted ADS (non-GAAP) $ 0.96     $ 0.60     $ 0.69     $ 1.60     $ 1.28  
                       
    Shares used in computing earnings per diluted ADS (GAAP)   33,697       33,827       33,562       33,687       33,681  
    Non-GAAP adjustments   18       20       18       23       33  
    Shares used in computing earnings per diluted ADS (non-GAAP)   33,715       33,847       33,580       33,710       33,714  
                       
    (A)Excludes stock-based compensation as follows:                  
    Cost of sales   14       73       –       86       73  
    Research & development   94       3,003       55       2,237       3,058  
    Sales & marketing   173       862       79       520       941  
    General & administrative   104       873       41       707       914  
                                           

                  

    Silicon Motion Technology Corporation
    Consolidated Balance Sheets
    (In thousands, unaudited)
                           
        Jun. 30,       Mar. 31,       Jun. 30,  
        2024       2025       2025  
        ($)       ($)       ($)  
    Cash and cash equivalents   289,175       275,140       208,043  
    Accounts receivable (net)   191,692       206,693       220,924  
    Inventories   240,811       180,903       208,005  
    Refundable deposits – current   51,036       53,015       70,308  
    Prepaid expenses and other current assets   31,460       32,102       68,040  
    Total current assets   804,174       747,853       775,320  
    Long-term investments   17,301       20,636       19,620  
    Property and equipment (net)   179,550       193,603       208,826  
    Other assets   29,121       29,310       29,997  
    Total assets   1,030,146       991,402       1,033,763  
                           
    Accounts payable   36,411       23,048       37,455  
    Income tax payable   14,103       14,782       17,370  
    Accrued expenses and other current liabilities   134,947       130,277       134,377  
    Total current liabilities   185,461       168,107       189,202  
    Other liabilities   60,182       50,968       55,620  
    Total liabilities   245,643       219,075       244,822  
    Shareholders’ equity   784,503       772,327       788,941  
    Total liabilities & shareholders’ equity   1,030,146       991,402       1,033,763  
                           
    Silicon Motion Technology Corporation
    Condensed Consolidated Statements of Cash Flows
    (in thousands, unaudited)
           
      For Three Months Ended   For the Six Months Ended
      Jun. 30,   Mar. 31,   Jun. 30,   Jun. 30,   Jun. 30,
        2024       2025       2025       2024       2025  
      ($)   ($)   ($)   ($)   ($)
    Net income   30,821       19,463       16,311       46,837       35,774  
    Depreciation & amortization   5,802       7,225       7,445       11,411       14,670  
    Stock-based compensation   385       4,811       175       3,550       4,986  
    Investment losses (gain) & disposals   (1,855 )     (3,309 )     1,053       (247 )     (2,256 )
    Changes in operating assets and liabilities   (13,660 )     22,082       (42,258 )     (32,246 )     (20,176 )
    Net cash provided by (used in) operating activities   21,493       50,272       (17,274 )     29,305       32,998  
                       
    Purchase of property & equipment   (10,427 )     (11,661 )     (15,551 )     (21,176 )     (27,212 )
    Proceeds from disposal of properties   –       13       –       –       13  
    Net cash used in investing activities   (10,427 )     (11,648 )     (15,551 )     (21,176 )     (27,199 )
                       
    Dividend payments   (16,820 )     (16,956 )     (16,746 )     (33,629 )     (33,702 )
    Share repurchases   –       (24,291 )     (21 )     –       (24,312 )
    Net cash used in financing activities   (16,820 )     (41,247 )     (16,767 )     (33,629 )     (58,014 )
                       
    Net increase (decrease) in cash, cash equivalents & restricted cash   (5,754 )     (2,623 )     (49,592 )     (25,500 )     (52,215 )
    Effect of foreign exchange changes   86       37       124       121       161  
    Cash, cash equivalents & restricted cash—beginning of period   349,279       334,333       331,747       368,990       334,333  
    Cash, cash equivalents & restricted cash—end of period   343,611       331,747       282,279       343,611       282,279  
                       

    About Silicon Motion:

    We are the global leader in supplying NAND flash controllers for solid state storage devices. We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications.  We also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions. Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs.  For further information on Silicon Motion, visit us at www.siliconmotion.com.

    Forward-Looking Statements:
    This news 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 terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; the uncertainties associated with any future global or regional pandemic; the continuing tensions between Taiwan and China, including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; changes in our cost of finished goods; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our Board of Directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2025. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this news release.

    The MIL Network –

    July 31, 2025

  • MIL-OSI Submissions: Economy – US Fed holds rates steady – but September cut now in focus: deVere CEO

    Source: deVere Group

    July 30 2025 – The Federal Reserve held interest rates steady today, but the next step is increasingly clear. A cut is coming in September, and investors should be preparing now, predicts the CEO of one of the world’s largest independent financial organizations.

    “The decision to hold was expected, but it doesn’t shift the path. The Fed has likely just bought itself eight more weeks before a pivot,” says Nigel Green, CEO of global financial advisory giant deVere Group.

    “We now expect that by September, the underlying softness in the economy will make a cut not just justified, but necessary.”

    The Fed kept the benchmark rate in its target range of 4.25% to 4.50%, where it has sat since December.

    But what was notable this time wasn’t the decision, it was the dissent.

    “When key policymakers start breaking ranks, it tells you the consensus is cracking. The economy is changing faster than the narrative.”

    The headline GDP figure – 3.0% annualized growth in the second quarter – painted a picture of strength.

    However, the internals tell a different story. Imports plunged, flattering the overall print, while core domestic demand slowed sharply.

    “The GDP number looked impressive at first glance, but it’s built on a shrinking trade gap. That’s not the foundation of enduring growth. Beneath it, private consumption and business investment are both showing signs of fatigue,” notes Nigel Green.

    Consumer spending, while still positive, decelerated from the previous quarter. Americans are becoming more selective, more cautious – a shift that matters for investors trying to assess which parts of the market remain resilient.

    “We’re seeing a transition in behavior. People aren’t panicking, but they’re hesitating. They’re thinking harder about how and where to spend. This shift will ripple across sectors, and smart investors will adjust early.”

    With inflation continuing to ease, the Fed has room to move – and the broader economic signals are now pointing in the same direction.

    “The case for cutting isn’t built on fear, it’s built on realism. Growth isn’t reversing, but it is thinning out. The Fed has always said it’s data-driven, and the data is evolving.”

    The deVere Group chief executive believes today’s pause gives investors a crucial window.

    “This is the moment to recheck exposure, stress test assumptions, and reweight toward high-quality, globally diversified assets. If you’re waiting for the official pivot to reposition, you may already be behind.”

    Markets may respond positively in the short term to the Fed’s steady hand, but that optimism could narrow once investors process the nuances of slowing demand and uneven sector performance.

    “There’s a difference between momentum and endurance. Right now, we’re seeing the tail end of stimulus-driven resilience, but not a broad-based expansion. Positioning based on the headline alone is a mistake.”

    deVere is advising clients to look beyond the binary of rate hikes or cuts, and to focus instead on portfolio durability in a world where growth is steady but no longer abundant.

    “It would appear that we’re entering a new phase of lower inflation, lower growth, and soon, lower rates. This rewards forward-thinking strategy over reaction.”

    As central bankers weigh the incoming data and investors digest the mixed signals, it seems that September is shaping up to be a decisive month.

    “Today’s decision keeps the Fed in wait-and-see mode – but the waiting won’t last much longer. We expect the first cut in September. Now is the time to prepare for it.”

    deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of offices around the world, more than 80,000 clients, and $14bn under advisement.

    MIL OSI – Submitted News –

    July 31, 2025

  • MIL-OSI USA: SBA Offers Relief to Washington Small Businesses and Private Nonprofits Affected by Drought

    Source: United States Small Business Administration

    SACRAMENTO, Calif. – The U.S. Small Business Administration (SBA) announced the availability of low interest federal disaster loans to small businesses and private nonprofit (PNP) organizations in Washington to offset economic losses caused by drought beginning July 8.

    The declaration covers the Washington counties of Adams, Asotin, Columbia, Franklin, Garfield, Lincoln, Spokane and Whitman as well as Idaho counties of Benewah, Latah and Nez Perce and the Oregon county of Wallowa.

    Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and PNPs including faith-based with financial losses directly related to the disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.

    EIDLs are available for working capital needs caused by the disaster and are available even if the business or PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable and other bills not paid due to the disaster.

    “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”

    The loan amount can be up to $2 million with interest rates as low as 4% for businesses and 3.625% for PNPs with terms up to 30 years. Interest does not accrue, and payments are not due until 12 months after the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant’s financial condition.

    To apply online, visit sba.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

    Submit completed loan applications to SBA no later than March 16, 2026.

    ###

    About the U.S. Small Business Administration

    The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

    MIL OSI USA News –

    July 31, 2025

  • MIL-OSI USA: SBA Offers Relief to Kansas Small Businesses and Private Nonprofits Affected by May Drought

    Source: United States Small Business Administration

    SACRAMENTO, Calif. – The U.S. Small Business Administration (SBA) announced the availability of low interest federal disaster loans to small businesses and private nonprofit (PNP) organizations in Kansas to offset economic losses caused by drought beginning May 20.

    The declaration covers the Kansas counties of Decatur, Graham, Norton, Phillips, Rawlins, Sheridan and Thomas as well as the Nebraska counties of Furnas, Harlan and Red Willow.

    Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and PNPs including faith-based with financial losses directly related to the disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.

    EIDLs are available for working capital needs caused by the disaster and are available even if the business or PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable and other bills not paid due to the disaster.

    “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”

    The loan amount can be up to $2 million with interest rates as low as 4% for businesses and 3.625% for PNPs with terms up to 30 years. Interest does not accrue, and payments are not due until 12 months after the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant’s financial condition.

    To apply online, visit sba.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

    Submit completed loan applications to SBA no later than March 16, 2026.

    ###

    About the U.S. Small Business Administration

    The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

    MIL OSI USA News –

    July 31, 2025

  • MIL-OSI USA: SBA Offers Relief to Nebraska Small Businesses and Private Nonprofits Affected by May Drought

    Source: United States Small Business Administration

    SACRAMENTO, Calif. – The U.S. Small Business Administration (SBA) announced the availability of low interest federal disaster loans to small businesses and private nonprofit (PNP) organizations in Nebraska to offset economic losses caused by drought beginning May 13.

    The declaration covers the Nebraska counties of Buffalo, Butler, Chase, Clay, Colfax, Dawson, Dodge, Dundy, Fillmore, Franklin, Frontier, Furnas, Gosper, Hamilton, Harlan, Hayes, Hitchcock, Jefferson, Kearney, Lancaster, Lincoln, Merrick, Nuckolls, Perkins, Phelps, Platte, Polk, Red Willow, Saline, Saunders, Seward, Thayer and York as well as Kansas counties of Decatur, Norton and Rawlins.

    Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and PNPs including faith-based with financial losses directly related to the disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.

    EIDLs are available for working capital needs caused by the disaster and are available even if the business or PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable and other bills not paid due to the disaster.

    “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”

    The loan amount can be up to $2 million with interest rates as low as 4% for small businesses and 3.625% for PNPs with terms up to 30 years. Interest does not accrue, and payments are not due until 12 months after the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant’s financial condition.

    To apply online, visit sba.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

    Submit completed loan applications to SBA no later than March 16, 2026.

    ###

    About the U.S. Small Business Administration

    The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

    MIL OSI USA News –

    July 31, 2025

  • MIL-OSI USA: SBA Offers Relief to Idaho Small Businesses and Private Nonprofits Affected by July Drought

    Source: United States Small Business Administration

    SACRAMENTO, Calif. – The U.S. Small Business Administration (SBA) announced the availability of low‑interest federal disaster loans to small businesses and private nonprofit (PNP) organizations in Idaho to offset economic losses caused by drought.

    The disaster declarations cover the counties listed below:

    Declaration
    Number

    Primary
    Counties/Parishes

    Neighboring
    Counties/Parishes

    Incident Type

    Incident Date

    Deadline

    ID 21214

    		 Clearwater, Idaho, Lemhi, Lewis and Shoshone Adams, Benewah, Bonner, Butte, Clark, Custer, Kootenai, Latah, Nez Perce and Valley in Idaho; Beaverhead, Mineral, Missoula, Ravalli and Sanders in Montana; Wallowa in Oregon. Drought Beginning July 1, 2025

    3/16/26

    ID 21217

    		 Benewah, Latah and Nez Perce Clearwater, Idaho, Kootenai, Lewis and Shoshone in Idaho; Wallowa in Oregon; Asotin, Spokane and Whitman in Washington. Drought Beginning July 8, 2025

    3/16/26

    Under these declarations, SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and PNPs including faith-based with financial losses directly related to the disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.

    EIDLs are available for working capital needs caused by the disaster and are available even if the business or PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable and other bills not paid due to the disaster.

    “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”

    The loan amount can be up to $2 million with interest rates as low as 4% for businesses and 3.625% for PNPs with terms up to 30 years. Interest does not accrue, and payments are not due until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant’s financial condition.

    To apply online and receive additional disaster assistance information visit sba.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

    Submit completed loan applications to the SBA no later than March 16, 2026.

    ###

    About the U.S. Small Business Administration

    The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

    MIL OSI USA News –

    July 31, 2025

  • MIL-OSI USA: SBA Offers Relief to Colorado Small Businesses and Private Nonprofits Affected by May Drought

    Source: United States Small Business Administration

    SACRAMENTO, Calif. – The U.S. Small Business Administration (SBA) announced the availability of low interest federal disaster loans to small businesses and private nonprofit (PNP) organizations in Colorado to offset economic losses caused by drought beginning May 13.

    The declaration covers the Colorado counties of Eagle, Garfield, Grand, Jackson, Lake, Moffat, Pitkin, Rio Blanco, Routt and Summit as well as Utah counties of Daggett and Uintah, and the Wyoming counties of Carbon and Sweetwater.

    Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and PNPs including faith-based with financial losses directly related to the disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.

    EIDLs are available for working capital needs caused by the disaster and are available even if the business or PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable and other bills not paid due to the disaster.

    “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”

    The loan amount can be up to $2 million with interest rates as low as 4% for small businesses and 3.625% for PNPs with terms up to 30 years. Interest does not accrue, and payments are not due until 12 months after the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant’s financial condition.

    To apply online, visit sba.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

    Submit completed loan applications to SBA no later than March 16, 2026.

    ###

    About the U.S. Small Business Administration

    The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

    MIL OSI USA News –

    July 31, 2025
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