NewzIntel.com

Category: Economy

  • MIL-OSI: Unity Bancorp Announces 8% Increase in First Quarter Dividend

    Source: GlobeNewswire (MIL-OSI)

    CLINTON, N.J., Feb. 27, 2025 (GLOBE NEWSWIRE) — Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, announced that its Board of Directors has declared a cash dividend of $0.14 per common share. Such dividend is payable on March 28, 2025, to shareholders of record as of March 14, 2025.

    This represents an 8% increase from the $0.13 dividend per common share paid in the prior quarter.

    “Consistent with the past several years, we are pleased to announce an increase in our dividend payout, a true testament to our robust financial health and confidence in the Company’s growth and earnings outlook. We remain committed to delivering shareholder returns while managing a prudent and conservative capital position.”– James A. Hughes, President & CEO of Unity Bank

    Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $2.7 billion in assets and $2.1 billion in deposits. Unity Bank, the Company’s wholly owned subsidiary, provides financial services to retail, corporate and small business customers through its robust branch network located in Bergen, Hunterdon, Middlesex, Morris, Ocean, Somerset, Union, and Warren Counties in New Jersey and Northampton County in Pennsylvania. For additional information about Unity, visit our website at www.unitybank.com , or call 800-618-BANK.

    This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements may be identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the Company’s control that could impede its ability to achieve these goals. These factors include those items included in our Annual Report on Form 10-K under the heading “Item IA-Risk Factors” as amended or supplemented by our subsequent filings with the SEC, as well as general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, our ability to manage and reduce the level of our nonperforming assets, results of regulatory exams, and the impact of any health crisis or national disasters on the Bank, its employees and customers, among other factors.

    News Media & Financial Analyst Contact:
    George Boyan
    EVP and Chief Financial Officer
    (908) 713-4565

    The MIL Network –

  • MIL-OSI: dLocal Reports 2024 Fourth Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Full Year 2024 results
    US$25.6 billion Total Payment Volume, up 45% year-over-year
    Revenue of US$746 million, up 15% year-over-year
    113% Net Revenue Retention Rate
    Gross Profit of US$295 million, up 6% year-over-year
    Adjusted EBITDA of US$189 million, down 7% year-over-year

    Fourth Quarter 2024
    US$7.7 billion Total Payment Volume, up 51% year-over-year and 18% quarter-over-quarter
    Revenue of US$204 million, up 9% year-over-year and 10% quarter-over-quarter
    106% Net Revenue Retention Rate
    Gross Profit of US$84 million, up 20% year-over-year and 7% quarter-over-quarter
    Adjusted EBITDA of US$57 million, up 16% year-over-year and 9% quarter-over-quarter

    • Record TPV of $26 billion, a strong growth to 45% YoY with mix continuing to move to newer more attractive markets, while core markets rebounded from Q3 softness;
    • Revenue and gross profits hitting record highs of $746 million and $295 million, respectively;
    • Adjusted EBITDA to GP margins closing out the year at 64%, but improving consistently as the year progressed.

    dLocal reports in US dollars and in accordance with IFRS as issued by the IASB

    MONTEVIDEO, Uruguay, Feb. 27, 2025 (GLOBE NEWSWIRE) — DLocal Limited (“dLocal”, “we”, “us”, and “our”) (NASDAQ:DLO), a technology – first payments platform today announced its financial results for the fourth quarter ended December 31, 2024..

    As we walk through a review of our performance over the past quarter and year, and as we have repeatedly mentioned, we think of five pillars underpinning dLocal’s investment thesis:

    • A massive addressable market, given the untapped potential of emerging and frontier markets as they digitize payments and merchants go to market throughout the Global South. 85% of the world’s population resides in emerging markets1, and two thirds of global growth by 2035 will come from there2.
    • Consistent high top line growth, driven by a proven track record of delivering value to the world’s most sophisticated global digital merchants that has allowed us to capture a market leading share of this expanding TAM.
    • Attractive margin business with potential to deliver operational leverage once we have laid the foundational blocks and further scale benefits kick in.
    • Strong cash generating financial model as Net Income converts well into FCF.
    • Investment in product development capabilities to drive growth through new categories, products, feature innovations, and potential M&A activity.

    Our FY 2024 results affirm the investment thesis, highlighted by a record TPV of $26 billion, a strong TPV growth of 45% year-over-year, driven by a shift towards newer, more attractive markets, while core markets rebounded from Q3 softness. Additionally, revenue and gross profits reached record highs of $746 million and $295 million, respectively, with an adjusted EBITDA to GP margins closing the year at 64%, showing consistent improvement throughout the year. Furthermore, Net Income to FCF of Own funds3 conversion exited the year at a rate above 100%.

    These strong 2024 results should be seen in the context of a weak first quarter followed by progressively stronger quarter-over-quarter performance, and the continuation of an investment cycle aimed at achieving greater scalability for our business.

    Building on last quarter’s positive trend, our TPV grew over 50% year-over-year, despite a strong Q4 2023 comparison. Quarter-over-quarter, TPV growth accelerated to nearly 20%, driven by commerce seasonality, and strength in remittances and ride-hailing. In constant currency3, given general weakness in Emerging Markets currencies, those growth rates are even more impressive, about 30 points higher year-over-year.

    Revenues surpassed the milestone of over $200 million in Q4, representing a 9% year-over-year growth. In constant currencies4, revenue growth for the period would have been around 40% year-over-year.

    Our growth continues to reinforce our position as a trusted partner for global companies seeking to do business across emerging markets, with performance coming from a well diversified list of countries, with notable contributions from Argentina, Egypt, Other LatAm and Other Africa and Asia markets. As a result of our expansion into more frontier markets, we also continue to see solid growth in our cross-border volumes.

    In terms of profitability, we reached a record gross profit of $84 million, with a net take rate at 1.1%, reflecting the market dynamic where higher volumes drive lower take rates, increase in the payouts share, and the depreciation of emerging market currencies. To offset this, we are driving cost efficiencies through processor and broker renegotiations and improvements in our hedging strategy. We also continue our push into higher take rate markets and verticals, which over the long term, should partially offset the take rate compression.

    Despite the ongoing step up in investments in our engineering team, operational capabilities, and license portfolio to support our long-term growth ambitions, our Adjusted EBITDA hit a record $57 million in the quarter, with an adjusted EBITDA over gross profit margin improving quarter-over-quarter to 68%.

    Cash generation was also solid, as we continue to increase free cash available to deploy behind our capital allocation strategy. This sustained cash generation increases our flexibility when thinking through M&A, buybacks or re-investing in a disciplined manner back into the business.

    In 2024, we added 9 licenses and registrations, including the UK FCA’s Authorised Payment Institution license, which enhances our competitive edge and demonstrates our commitment to compliant practices and regulatory oversight.

    To sum up, Q4 marked the successful end to 2024 in terms of consistent TPV growth, controlled take rate decline, and balance of investment for future growth with a healthy margin and free cash profile.

    Looking ahead to our 2025 guidance5, we expect a strong TPV growth of 35% – 45% year-over-year, with a revenue growth of 25% – 35% year-over-year that shows this sustained momentum of our top line. We see gross profit growth of 20% – 25% year-over-year, and Adjusted EBITDA growth between 20% and 30% year-over-year.

    Considering those assumptions, we should expect a net take rate compression while delivering high TPV growth even at our scale. Over the midterm, we will work to maintain strong TPV while recognizing that given the extremely strong levels of TPV retention we deliver, our larger merchants will continue to attain lower pricing tiers. We will strive to offset this effect through growth in higher take rate new verticals, natural mix shift towards higher take rate frontier markets, and new revenue streams through product launches.

    This guidance highlights that our combination of revenue growth, margin structure and free cash generation is not that common. There are not that many companies today who are as profitable as we are, growing revenues at the pace we are growing, and consistently generating free cash.

    As known, our business thrives in fast-growing, dynamic markets with massive opportunities in digital payments across emerging markets, driven by strong demand and long-term growth trends. However, these markets also bring volatility from macroeconomic shifts, regulatory changes, and currency fluctuations. While we are confident in our long-term high-growth potential, providing mid-term guidance may not accurately reflect the predictability over a multi-year timeframe. For this reason, we have made the decision to discontinue mid-term guidance. We will continue to focus on delivering strong operational execution so as to hit the annual targets we disclose.

    Looking ahead to 2025, we are confident in our ability to sustain momentum. Our investments in technology, product innovation, and market expansion position us well for growth. Despite the volatility of emerging markets, our disciplined scaling, local expertise, and commitment to delivering value to merchants will differentiate us. Our strategy focuses on capturing the potential of digital payments in high-growth regions, driving operational efficiencies, and reinforcing market leadership. We are excited about the opportunities ahead and committed to executing with the same rigor and discipline that have defined our success.

    1 Source: Euromonitor International: Reaching the emerging middle class beyond BRIC; 2 Source: S&P Global Market Intelligence. 3 Please see Reconciliation of TPV and Revenue constant currency measures to reported results of Q4 2024 Earnings Presentation; 4 Please see Reconciliation of TPV and Revenue constant currency measures to reported results of Q4 2024 Earnings Presentation; 5 please see Full year 2025 outlook on slide 23 of Q4 2024 Earnings Presentation.

    Fourth quarter 2024 financial highlights

    • Total Payment Volume (“TPV”) reached a record US$7.7 billion in the fourth quarter, up 51% year-over-year compared to US$5.1 billion in the fourth quarter of 2023 and up 18% compared to US$6.5 billion in the third quarter of 2024. In constant currencies1, TPV growth for the period would have been 81% year-over-year.
    • Revenues amounted to US$204.5 million, up 9% year-over-year compared to US$188.0 million in the fourth quarter of 2023 and up 10% compared to US$185.8 million in the third quarter of 2024. This quarter-over-quarter increase was mostly driven by volume increase in Egypt, as well as positive results in Other LatAm and Other Africa and Asia, with notable performance in South Africa, Turkey, Colombia and Ecuador. In constant currencies1, revenue growth for the period would have been 42% year-over-year.
    • Gross profit was US$83.7 million in the fourth quarter of 2024, up 20% compared to US$69.7 million in the fourth quarter of 2023 and up 7% compared to US$78.2 million in the third quarter of 2024. The improvement in gross profit quarter-over-quarter was primarily due to volume growth in Argentina, Egypt, Nigeria and Turkey. These positive factors were partially offset by (i) Mexico, given the higher growth of Tier 0 merchants coupled with a shift in the payment mix; (ii) Brazil, given the lower take rates from the new Payment Orchestration option launched in the third quarter of 2024 (which positively allowed for volume recovery versus the prior quarter) and shift in the payment mix; and (iii) Other LatAm markets, that despite delivering positive volume performance, on a quarter-over-quarter comparison was impacted by the strong growth in Q3 from wider FX spreads in certain smaller markets, as disclosed in the previous quarterly results.
    • As a result, gross profit margin was 41% in this quarter, compared to 37% in the fourth quarter of 2023 and 42% in the third quarter of 2024.
    • Gross profit over TPV was at 1.1% decreasing from 1.4% in the fourth quarter of 2023 and from 1.2% compared to the third quarter of 2024.
    • Operating income was US$42.3 million, up 3% compared to US$41.0 million in the fourth quarter of 2023 and up 3% compared to US$41.1 million in the third quarter of 2024, as we resumed the pace of certain investments in building out our capabilities. In this context, operating expenses grew by 44% year-over-year, with most of the growth allocated to Product Development & IT capabilities, with these expenses increasing by 70% year-over-year while combined Sales and Marketing (S&M) and G&A expenses grew by 29%. On the sequential comparison, operating expenses increased 12% quarter-over-quarter, a reflection of (i) growth in combined S&M and G&A expenses, driven by continued investment in operating capabilities and marketing investments; and (ii) slightly down tech and development expenses as increases in headcount were offset by reductions in other IT expenditures.
    • As a result, Adjusted EBITDA was US$56.9 million, up 16% compared to US$49.2 million in the fourth quarter of 2023 and up 9% compared to US$52.4 million in the third quarter of 2024.
    • Adjusted EBITDA margin was 28%, compared to the 26% recorded in the fourth quarter of 2023 and 28% in the third quarter of 2024. On the annual comparison, the increase is explained by investments in core areas to drive efficiency and ensure future growth while maintaining our lean and disciplined structure. Adjusted EBITDA over gross profit of 68% decreased compared to 71% in the fourth quarter of 2023 and increased compared to 67% in the third quarter of 2024.
    • Net financial cost was US$1.1 million, compared to a finance income of US$1.0 million in the fourth quarter of 2023 and a cost of US$10.1 million in the third quarter of 2024, as explained in the Net Income section.
    • Our effective income tax rate increased to 27% from 8% last quarter, and stands at 20% on a year-to-date basis. In the fourth quarter of 2024, effective income tax rate was impacted by an income tax settlement related to previous periods. Excluding this tax settlement, our effective income tax rate stood at 16% for the fourth quarter and 17% for the year compared to 16% in 2023, as a result of slightly higher local-to-local share of pre-tax income.
    • Net income for the fourth quarter of 2024 was US$29.7 million, or US$0.10 per diluted share, up 4% compared to a profit of US$28.5 million, or US$0.10 per diluted share, for the fourth quarter of 2023 and up 11% compared to a profit of US$26.8 million, or US$0.09 per diluted share for the third quarter of 2024. During the current period, net income was mostly affected by the positive non-cash mark to market effect related to our Argentine bond investments, lower finance costs partially offset by higher taxes. Adjusted net income for the fourth quarter of 2024 was US$45.8 million, up 13% compared to US$40.6 million for the fourth quarter of 2023 and up 6% compared to US$43.4 million for the third quarter of 2024.
    • As of December 31, 2024, dLocal had US$425.2 million in cash and cash equivalents, including US$189.0 million of own funds and US$236.1 million of merchants’ funds. The consolidated cash position decreased by US$111.0 million from US$536.2 million as of December 31, 2023. When compared to the US$560.5 million cash position as of September 30, 2024, it decreased by US$135.4 million. The variation quarter-over-quarter is primarily explained by changes in merchant working capital, driven by: (i) increase in trade receivables due to temporary settlement delays before year-end; coupled with (ii) decrease in trade payables due to a shift in settlement periods with certain merchants and higher settlement of accumulated merchant balances.

    1Please see Reconciliation of TPV and Revenue constant currency measures to reported results of Q4 2024 Earnings Presentation.

    The following table summarizes our key performance metrics:

      Three months ended December 31 Twelve months ended December 31
      2024 2023 % change 2024 2023 % change
    Key Performance metrics (In millions of US$ except for %)
    TPV 7,714 5,111 51% 25,575 17,677 45%
    Revenue 204.5 188.0 9% 746.0 650.4 15%
    Gross Profit 83.7 69.7 20% 294.7 276.9 6%
    Gross Profit margin 41% 37% 4p.p 40% 43% -3p.p
    Adjusted EBITDA 56.9 49.2 16% 188.7 202.3 -7%
    Adjusted EBITDA margin 28% 26% 2p.p 25% 31% -6p.p
    Adjusted EBITDA/Gross Profit 68% 71% -3p.p 64% 73% -9p.p
    Profit 29.7 28.5 4% 120.5 149.1 -19%
    Profit margin 15% 15% -1p.p 16% 23% -7p.p
                 

    Fourth quarter 2024 business highlights

    • During the fourth quarter of 2024, pay-ins TPV increased 44% year-over-year and 15% quarter-over-quarter to US$5.3 billion, accounting for 69% of the TPV.
    • Pay-outs TPV increased by 68% year-over-year and 26% quarter-over-quarter to US$2.4 billion, accounting for the remaining 31% of the TPV.
    • Cross-border TPV increased by 67% year-over-year and 23% quarter-over-quarter to US$3.7 billion. Cross-border volume accounted for 48% of the TPV in the fourth quarter of 2024.
    • Local-to-local TPV increased by 38% year-over-year and 14% quarter-over-quarter to US$4.0 billion. Local-to-local volume accounted for 52% of the TPV in the fourth quarter of 2024.
    • LatAm revenue increased 16% year-over-year to US$152.9 million, accounting for 75% of total revenue. On the annual comparison, the growth was primarily driven by (i) volume growth in Argentina; and (ii) strong performance of Other LatAm, particularly in Colombia. This result was partially offset by Brazil due to (i) lower take rates from the new Payment Orchestration option launched in the third quarter of 2024; and (ii) shift in the payment mix. Sequentially, LatAm revenue grew by 5%, mainly driven by the performance of Other LatAm, especially in Colombia and Ecuador. The positive result was offset by (i) Argentina, impacted by the lower FX spreads; (ii) Brazil, as previously explained; and (iii) Mexico, due to higher growth of Tier 0 merchants coupled with a shift in the payment mix.
    • In the Africa and Asia region, revenue decreased by 9% year-over-year, primarily driven by Nigeria due to the Naira devaluation in February of 2024; partially offset by (i) the strong growth performance in Egypt; and (ii) in Other Africa and Asia, particularly the performance in South Africa in the commerce vertical. Those regions are also the main drivers of the sequential increase.
    • LatAm gross profit increased by 3% year-over-year and 1% quarter-over-quarter to US$56.4 million, accounting for 67% of total gross profit. Most of the year-over-year increase is explained by the volume growth in Argentina, Mexico, and other LatAm markets, which were mostly offset by Brazil as just explained, and currency devaluations. Sequentially, the growth was mainly driven by Argentina’s positive performance; offset by drivers in Mexico and Brazil, as explained previously. Other Latam markets, which continue to grow TPV, were negatively impacted quarter-over-quarter due to the strong Q3 growth from wider FX spreads in smaller markets, as previously disclosed.
    • Africa and Asia gross profit increased by 82% year-over-year to US$27.3 million, accounting for the remaining 33% of total gross profit. This annual comparison is explained by TPV growth in Egypt, ramp-up of commerce merchants in South Africa, and positive performance in Other Africa and Asia markets, including Turkey and Vietnam. Sequentially, gross profit increased by 21%, attributable to the positive performance in Egypt, Nigeria and Turkey in categories such as remittances, financial services, ads and streaming.
    • During the quarter, Revenue from Existing Merchants reached US$198.3 million compared to US$ 179.9 million in the third quarter of 2024. On the annual comparison, Revenue from Existing Merchants increased by 13% and the net revenue retention rate, or NRR, reached 106%.
    • Revenue from New Merchants accounted for US$6.1 million in the fourth quarter of 2024 compared to US$11.8 million in the same quarter of the prior year.

    The tables below present the breakdown of dLocal’s TPV by product and type of flow:

    In millions of US$ except for % Three months ended December 31 Twelve months ended December 31
      2024 % share 2023 % share 2024 % share 2023 % share
    Pay-ins 5,340 69% 3,701 72% 17,902 70% 12,823 73%
    Pay-outs 2,373 31% 1,410 28% 7,673 30% 4,855 27%
    Total TPV 7,714 100% 5,111 100% 25,575 100% 17,677 100%
                     
    In millions of US$ except for % Three months ended December 31 Twelve months ended December 31
      2024 % share 2023 % share 2024 % share 2023 % share
    Cross-border 3,740 48% 2,235 44% 11,902 47% 8,670 49%
    Local-to-local 3,974 52% 2,876 56% 13,673 53% 9,007 51%
    Total TPV 7,714 100% 5,111 100% 25,575 100% 17,677 100%
                     

    The tables below present the breakdown of dLocal’s revenue by geography:

    In millions of US$ except for % Three months ended December 31 Twelve months ended December 31
      2024 % share 2023 % share 2024 % share 2023 % share
    Latin America 152.9 75% 131.5 70% 562.2 75% 492.7 76%
    Brazil 33.7 16% 50.2 27% 152.0 20% 159.0 24%
    Argentina 25.1 12% 10.5 6% 85.5 11% 75.1 12%
    Mexico 40.5 20% 35.6 19% 149.2 20% 116.8 18%
    Chile 13.5 7% 14.9 8% 51.2 7% 55.7 9%
    Other LatAm 40.1 20% 20.3 11% 124.4 17% 86.1 13%
                     
    Africa & Asia 51.6 25% 56.5 30% 183.8 25% 157.7 24%
    Nigeria 2.9 1% 28.4 15% 13.3 2% 84.0 13%
    Egypt 21.4 10% 18.4 10% 94.0 13% 36.7 6%
    Other Africa & Asia 27.4 13% 9.7 5% 76.5 10% 37.0 6%
                     
    Total Revenue 204.5 100% 188.0 100% 746.0 100% 650.4 100%
                     

    The tables below present the breakdown of dLocal’s gross profit by geography:

    In millions of US$ except for % Three months ended December 31 Twelve months ended December 31
      2024 % share 2023 % share 2024 % share 2023 % share
    Latin America 56.4 67% 54.7 79% 214.2 73% 228.7 83%
    Brazil 14.8 18% 25.5 37% 67.3 23% 78.8 28%
    Argentina 9.2 11% 4.0 6% 28.7 10% 48.7 18%
    Mexico 10.9 13% 9.3 13% 42.5 14% 34.7 13%
    Chile 9.2 11% 9.1 13% 33.1 11% 34.0 12%
    Other LatAm 12.4 15% 7.0 10% 42.6 14% 32.6 12%
                     
    Africa & Asia 27.3 33% 15.0 21% 80.5 27% 48.1 17%
    Nigeria 2.4 3% 1.5 2% 6.6 2% 5.8 2%
    Egypt 16.0 19% 9.6 14% 48.4 16% 26.1 9%
    Other Africa & Asia 8.9 11% 3.9 6% 25.5 9% 16.2 6%
                     
    Total Gross Profit 83.7 100% 69.7 100% 294.7 100% 276.9 100%
                     

    Special note regarding Adjusted EBITDA and Adjusted EBITDA Margin

    dLocal has only one operating segment. dLocal measures its operating segment’s performance by Revenues, Adjusted EBITDA and Adjusted EBITDA Margin, and uses these metrics to make decisions about allocating resources.

    Adjusted EBITDA as used by dLocal is defined as the profit from operations before financing and taxation for the year or period, as applicable, before depreciation of property, plant and equipment, amortization of right-of-use assets and intangible assets, and further excluding the finance income and costs, impairment gains/(losses) on financial assets, transaction costs, share-based payment non-cash charges,other operating gain/loss,other non-recurring costs, and inflation adjustment. dLocal defines Adjusted EBITDA Margin as the Adjusted EBITDA divided by consolidated revenues.

    Although Adjusted EBITDA and Adjusted EBITDA Margin may be commonly viewed as non-IFRS measures in other contexts, pursuant to IFRS 8, (“Operating Segments”), Adjusted EBITDA and Adjusted EBITDA Margin are treated by dLocal as IFRS measures based on the manner in which dLocal utilizes these measures. Nevertheless, dLocal’s Adjusted EBITDA and Adjusted EBITDA Margin metrics should not be viewed in isolation or as a substitute for net income for the periods presented under IFRS. dLocal also believes that its Adjusted EBITDA and Adjusted EBITDA Margin metrics are useful metrics used by analysts and investors, although these measures are not explicitly defined under IFRS. Additionally, the way dLocal calculates operating segment’s performance measures may be different from the calculations used by other entities, including competitors, and therefore, dLocal’s performance measures may not be comparable to those of other entities. Finally, dLocal is unable to present a quantitative reconciliation of forward-looking guidance for Adjusted EBITDA because dLocal cannot reliably predict certain of their necessary components, such as impairment gains/(losses) on financial assets, transaction costs, and inflation adjustment.

    The table below presents a reconciliation of dLocal’s Adjusted EBITDA to net income:

    $ in thousands Three months ended December 31 Twelve months ended December 31
      2024 2023 2024 2023
    Profit for the period 29,701 28,481 120,469 149,086
    Income tax expense 11,090 7,476 30,550 29,428
    Depreciation and amortization 4,888 3,604 17,177 12,225
    Finance income and costs, net 1,085 (996) (17,174) (11,394)
    Share-based payment non-cash charges 6,339 4,850 23,780 11,922
    Other operating loss¹ 1,307 – 5,257 –
    Impairment loss / (gain) on financial assets 533 (657) 440 (3,136)
    Inflation adjustment 392 6,040 6,655 12,537
    Other non-recurring costs² 1,571 434 1,571 1,663
    Adjusted EBITDA 56,906 49,232 188,725 202,332
             

    Note: 1 The company wrote-off certain amounts related to merchants/processors off-boarded by dLocal. 2 Other non-recurring costs consist of costs not directly associated with our core business activities, including costs associated with addressing the allegations made by a short-seller report and certain class action and other legal and regulatory expenses (which include fees from counsel, global expert services and a forensic accounting advisory firm) in 2023 and 2024.

    Special note regarding Adjusted Net Income

    Adjusted Net Income is a non-IFRS financial measure. As used by dLocal, Adjusted Net Income is defined as the profit for the period (net income) excluding impairment gains/(losses) on financial assets, transaction costs, share-based payment non-cash charges, and other operating (gain)/loss, in line with our Adjusted EBITDA calculation (see detailed methodology for Adjusted EBITDA on page 13). It further excludes the accounting non-cash charges related to the fair value gain from the Argentine dollar-linked bonds, the exchange difference loss from the intercompany loan denominated in USD that we granted to our Argentine subsidiary to purchase the bonds, and the hedging cost associated with the Argentina treasury notes. In addition, it excludes the inflation adjustment based on IFRS rules for hyperinflationary economies. We believe Adjusted Net Income is a useful measure for understanding our results of operations while excluding certain non-cash effects such as currency devaluation, inflation, and hedging costs. Our calculation for Adjusted Net Income may differ from similarly-titled measures presented by other companies and should not be considered in isolation or as a replacement for our measure of profit for the period as presented in accordance with IFRS.

    The table below presents a reconciliation of dLocal’s Adjusted net income:

    $ in thousands Three months ended December 31 Twelve months ended December 31
      2024 2023 2024 2023
    Net income as reported 29,701 28,481 120,469 149,086
    Inflation adjustment 392 6,040 6,655 12,537
    Loan – exchange difference 2,332 51,858 22,602 81,024
    Argentina Treasury Notes Hedging Costs 5,536 – 9,808 –
    Fair value loss / (gain) of financial assets at FVTPL (5,115) (50,754) (38,609) (78,640)
    Impairment loss / (gain) on financial assets 533 (657) 440 (3,135)
    Share-based payment non-cash charges 6,339 4,850 23,780 11,922
    Other operating loss¹ 1,307 – 5,257 –
    Other non-recurring costs³ 1,571 434 1,571 1,663
    Tax effect on adjustments (1,310) 386 (899) 834
    Adjusted net income 45,828 40,638 155,616 175,291
             

    Unaudited quarterly results.

    Note: 1 The company wrote-off certain amounts related to merchants/processors off-boarded by dLocal. 2 In Q4 2024, income tax was impacted by an income tax settlement related to previous periods, as disclosed in the Note 12 – Income Tax. 3 Other non-recurring costs consist of costs not directly associated with our core business activities, including costs associated with addressing the allegations made by a short-seller report and certain class action and other legal and regulatory expenses (which include fees from counsel, global expert services and a forensic accounting advisory firm) in 2023 and 2024.

    Earnings per share

    We calculate basic earnings per share by dividing the profit attributable to owners of the group by the weighted average number of common shares outstanding during the three-month and twelve-month periods ended December 31, 2024 and 2023.

    Our diluted earnings per share is calculated by dividing the profit attributable to owners of the group of dLocal by the weighted average number of common shares outstanding during the period plus the weighted average number of common shares that would be issued on conversion of all dilutive potential common shares into common shares.

    The following table presents the information used as a basis for the calculation of our earnings per share:

      Three months ended December 31 Twelve months ended December 31
      2024 2023 2024 2023
    Profit attributable to common shareholders (USD) 29,682,000 28,515,000 120,416,000 148,964,000
    Weighted average number of common shares 280,443,489 290,657,015 290,014,019 291,982,305
    Adjustments for calculation of diluted earnings per share 14,417,466 5,008,261 15,122,271 10,976,123
    Weighted average number of common shares for calculating diluted earnings per share 294,860,956 295,665,276 305,136,290 302,958,428
    Basic earnings per share 0.11 0.10 0.42 0.51
    Diluted earnings per share 0.10 0.10 0.39 0.49
             

    This press release does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, “Interim Financial Reporting” nor a financial statement as defined by International Accounting Standards 1 “Presentation of Financial Statements”. The quarterly financial information in this press release has not been audited, whereas the annual results for the year ended December 31, 2024 and 2023 are audited.

    Conference call and webcast
    dLocal’s management team will host a conference call and audio webcast on February 27, 2025 at 5:00 p.m. Eastern Time. Please click here to pre-register for the conference call and obtain your dial in number and passcode.

    The live conference call can be accessed via audio webcast at the investor relations section of dLocal’s website, at https://investor.dlocal.com/. An archive of the webcast will be available for a year following the conclusion of the conference call. The investor presentation will also be filed on EDGAR at www.sec.gov.

    About dLocal
    dLocal powers local payments in emerging markets, connecting global enterprise merchants with billions of emerging market consumers in more than 40 countries across Africa, Asia, and Latin America. Through the “One dLocal” platform (one direct API, one platform, and one contract), global companies can accept payments, send pay-outs and settle funds globally without the need to manage separate pay-in and pay-out processors, set up numerous local entities, and integrate multiple acquirers and payment methods in each market.

    Definition of selected operational metrics
    “API” means application programming interface, which is a general term for programming techniques that are available for software developers when they integrate with a particular service or application. In the payments industry, APIs are usually provided by any party participating in the money flow (such as payment gateways, processors, and service providers) to facilitate the money transfer process.

    “Cross-border” means a payment transaction whereby dLocal is collecting in one currency and settling into a different currency and/or in a different geography.

    “Local payment methods” refers to any payment method that is processed in the country where the end user of the merchant sending or receiving payments is located, which include credit and debit cards, cash payments, bank transfers, mobile money, and digital wallets.

    “Local-to-local” means a payment transaction whereby dLocal is collecting and settling in the same currency.

    “Net Revenue Retention Rate” or “NRR” is a U.S. dollar-based measure of retention and growth of dLocal’s merchants. NRR is calculated for a period or year by dividing the Current Period/Year Revenue by the Prior Period/Year Revenue. The Prior Period/Year Revenue is the revenue billed by us to all our customers in the prior period. The Current Period/Year Revenue is the revenue billed by us in the current period to the same customers included in the Prior Period/Year Revenue. Current Period/Year Revenue includes revenues from any upselling and cross-selling across products, geographies, and payment methods to such merchant customers, and is net of any contractions or attrition, in respect of such merchant customers, and excludes revenue from new customers on-boarded in the preceding twelve months. As most of dLocal revenues come from existing merchants, the NRR rate is a key metric used by management, and we believe it is useful for investors in order to assess our retention of existing customers and growth in revenues from our existing customer base.

    “Pay-in” means a payment transaction whereby dLocal’s merchant customers receive payment from their customers.

    “Pay-out” means a payment transaction whereby dLocal disburses money in local currency to the business partners or customers of dLocal’s merchant customers.

    “Revenue from New Merchants” means the revenue billed by us to merchant customers that we did not bill revenues in the same quarter (or period) of the prior year.

    “Revenue from Existing Merchants” means the revenue billed by us in the last twelve months to the merchant customers that we billed revenue in the same quarter (or period) of the prior year.

    “TPV” dLocal presents total payment volume, or TPV, which is an operating metric of the aggregate value of all payments successfully processed through dLocal’s payments platform. Because revenue depends significantly on the total value of transactions processed through the dLocal platform, management believes that TPV is an indicator of the success of dLocal’s global merchants, the satisfaction of their end users, and the scale and growth of dLocal’s business.

    Rounding: We have made rounding adjustments to some of the figures included in this interim report. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them.

    Forward-looking statements
    This press release contains certain forward-looking statements. These forward-looking statements convey dLocal’s current expectations or forecasts of future events, including guidance in respect of total payment volume, revenue, gross profit and Adjusted EBITDA. Forward-looking statements regarding dLocal and amounts stated as guidance are based on current management expectations and involve known and unknown risks, uncertainties and other factors that may cause dLocal’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the “Risk Factors,” “Forward-Looking Statements” and “Cautionary Statement Regarding Forward-Looking Statements” sections of dLocal’s filings with the U.S. Securities and Exchange Commission. Unless required by law, dLocal undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date hereof. In addition, dLocal is unable to present a quantitative reconciliation of forward-looking guidance for Adjusted EBITDA, because dLocal cannot reliably predict certain of their necessary components, such as impairment gains/(losses) on financial assets, transaction costs, and inflation adjustment.

    dLocal Limited
    Certain financial information
    Consolidated Condensed Interim Statements of Comprehensive Income for the three-month and twelve-month periods ended December 31, 2024 and 2023
    (All amounts in thousands of U.S. Dollars except share data or as otherwise indicated)

      Three months ended December 31 Twelve months ended December 31
      2024 2023 2024 2023
    Continuing operations        
    Revenues 204,491 188,005 745,974 650,351
    Cost of services (120,780) (118,286) (451,301) (373,492)
    Gross profit 83,711 69,719 294,673 276,859
             
    Technology and development expenses (6,822) (4,024) (25,625) (12,650)
    Sales and marketing expenses (5,598) (4,710) (21,626) (17,120)
    General and administrative expenses (27,183) (20,641) (101,225) (70,568)
    Impairment (loss)/gain on financial assets (533) 657 (440) 3,136
    Other operating (loss)/gain (1,307) – (5,257) –
    Operating profit 42,268 41,001 140,500 179,657
    Finance income 12,036 57,913 66,875 128,228
    Finance costs (13,121) (56,917) (49,701) (116,834)
    Inflation adjustment (392) (6,040) (6,655) (12,537)
    Other results (1,477) (5,044) 10,519 (1,143)
    Profit before income tax 40,791 35,957 151,019 178,514
    Income tax expense (11,090) (7,476) (30,550) (29,428)
    Profit for the period 29,701 28,481 120,469 149,086
             
    Profit attributable to:        
    Owners of the Group 29,682 28,515 120,416 148,964
    Non-controlling interest 19 (34) 53 122
    Profit for the period 29,701 28,481 120,469 149,086
             
    Earnings per share (in USD)        
    Basic Earnings per share 0.11 0.10 0.42 0.51
    Diluted Earnings per share 0.10 0.10 0.39 0.49
             
    Other comprehensive income        
    Items that may be reclassified to profit or loss:        
    Exchange difference on translation on foreign operations (4,417) (9,054) (11,188) (7,713)
    Other comprehensive income for the period, net of tax (4,417) (9,054) (11,188) (7,713)
    Total comprehensive income for the period, net of tax 25,284 19,427 109,281 141,373
             
    Total comprehensive income for the period        
    Owners of the Group 25,311 19,463 109,290 141,255
    Non-controlling interest (27) (36) (9) 118
    Total comprehensive income for the period 25,284 19,427 109,281 141,373
             

    dLocal Limited
    Certain financial information
    Consolidated Condensed Interim Statements of Financial Position as of December 31, 2024 and December 31, 2023
    (All amounts in thousands of U.S. dollars)

      December 31, 2024   December 31, 2023
    ASSETS      
    Current Assets      
    Cash and cash equivalents 425,172   536,160
    Financial assets at fair value through profit or loss 129,319   102,677
    Trade and other receivables 496,713   363,374
    Derivative financial instruments 2,874   2,040
    Other assets 18,805   11,782
    Total Current Assets 1,072,883   1,016,033
           
    Non-Current Assets      
    Financial assets at fair value through profit or loss –   1,710
    Trade and other receivables 18,044   –
    Deferred tax assets 5,367   2,217
    Property, plant and equipment 3,377   2,917
    Right-of-use assets 3,645   3,689
    Intangible assets 63,318   57,887
    Other assets 4,695   –
    Total Non-Current Assets 98,446   68,420
    TOTAL ASSETS 1,171,329   1,084,453
           
    LIABILITIES      
    Current Liabilities      
    Trade and other payables 597,787   602,493
    Lease liabilities 1,137   626
    Tax liabilities 21,515   20,800
    Derivative financial instruments 6,227   948
    Financial liabilities 50,455   –
    Provisions 500   362
    Total Current Liabilities 677,621   625,229
           
    Non-Current Liabilities      
    Deferred tax liabilities 1,858   753
    Lease liabilities 2,863   3,331
    Total Non-Current Liabilities 4,721   4,084
    TOTAL LIABILITIES 682,342   629,313
           
    EQUITY      
    Share Capital 570   591
    Share Premium 186,769   173,001
    Treasury Shares (200,980)   (99,936)
    Capital Reserve 33,438   21,575
    Other Reserves (20,934)   (9,808)
    Retained earnings 490,024   369,608
    Total Equity Attributable to owners of the Group 488,887   455,031
    Non-controlling interest 100   109
    TOTAL EQUITY 488,987   455,140
    TOTAL EQUITY AND LIABILITIES 1,171,329   1,084,453
           

    dLocal Limited
    Certain interim financial information
    Consolidated Statements of Cash flows for the three-month and twelve-month periods ended December 31, 2024 and 2023
    (All amounts in thousands of U.S. dollars)

      Three months ended December 31 Twelve months ended December 31
      2024 2023 2024 2023
    Cash flows from operating activities        
    Profit before income tax 40,791 35,957 151,019 178,514
    Adjustments:        
    Interest Income from financial instruments (6,921) (7,159) (28,266) (49,588)
    Interest charges for lease liabilities 370 110 501 578
    Other interests charges 739 2,503 3,758 5,623
    Finance expense related to derivative financial instruments (627) 5,497 19,462 28,013
    Net exchange differences 5,914 50,100 24,787 82,620
    Fair value loss/(gain) on financial assets at FVPL (3,922) (50,754) (37,416) (78,640)
    Amortization of Intangible assets 4,364 3,251 15,511 10,816
    Depreciation and disposals of PP&E and right-of-use 652 353 1,884 1,409
    Share-based payment expense, net of forfeitures 6,339 4,850 23,780 11,922
    Other operating gain 786 – 4,736 –
    Net Impairment loss/(gain) on financial assets 533 2,796 440 318
    Inflation adjustment and other financial results (5,704) 9,041 (17,063) 9,041
      43,313 56,546 163,133 200,626
    Changes in working capital        
    Increase in Trade and other receivables (109,487) (51,154) (162,645) (123,246)
    Decrease / (Increase) in Other assets 4,128 13,258 5,427 45,007
    Increase / (Decrease) in Trade and Other payables (70,700) 52,654 (6,957) 194,619
    Increase / (Decrease) in Tax Liabilities (3,835) (6,591) (3,184) (10,967)
    Increase / (Decrease) in Provisions 222 (275) 138 (1,111)
    Cash (used) / generated from operating activities (136,359) 64,438 (4,088) 304,928
    Income tax paid (4,773) (2,996) (28,696) (11,475)
    Net cash (used) / generated from operating activities (141,132) 61,442 (32,784) 293,453
             
    Cash flows from investing activities        
    Acquisitions of Property, plant and equipment (427) 21 (1,705) (965)
    Additions of Intangible assets (5,699) (4,758) (20,942) (17,260)
    Acquisition of financial assets at FVPL (14,852) (15,847) (121,468) (117,517)
    Collections of financial assets at FVPL – 3,721 108,097 1,487
    Interest collected from financial instruments 6,921 7,159 28,266 49,588
    Payments for investments in other assets at FVPL (10,000) – (10,000) –
    Net cash (used in) / generated investing activities (24,057) (9,704) (17,752) (84,667)
             
    Cash flows from financing activities        
    Repurchase of shares – – (101,067) (97,929)
    Share-options exercise paid 358 – 1,853 153
    Interest payments on lease liability (370) (110) (501) (578)
    Principal payments on lease liability (112) (315) (552) (1,103)
    Finance expense paid related to derivative financial instruments (8) (7,640) (15,017) (28,443)
    Net proceeds from financial liabilities 33,653 – 50,428 –
    Interest payments on financial liabilities (1,633) – (2,281) –
    Other finance expense paid (327) (2,851) (1,450) (5,971)
    Net cash used in by financing activities 31,561 (10,916) (68,587) (133,871)
    Net increase in cash flow (133,628) 40,822 (119,123) 74,915
             
    Cash and cash equivalents at the beginning of the period 560,533 498,165 536,160 468,092
    Net (decrease)/increase in cash flow (133,628) 40,822 (119,123) 74,915
    Effects of exchange rate changes on inflation and cash and cash equivalents (1,732) (2,827) 8,135 (6,847)
    Cash and cash equivalents at the end of the period 425,172 536,160 425,172 536,160
             

    Investor Relations Contact:
    investor@dlocal.com

    Media Contact:
    media@dlocal.com

    The MIL Network –

  • MIL-OSI: Stronghold Stockholders Overwhelmingly Approve Merger with Bitfarms

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 27, 2025 (GLOBE NEWSWIRE) — Stronghold Digital Mining, Inc. (NASDAQ: SDIG) (“Stronghold”, the “Company”, or “we”) today announced that its stockholders have overwhelmingly voted “FOR” the pending merger (the “Merger”) between Stronghold and Bitfarms Ltd. (NASDAQ/TSX: BITF) (“Bitfarms”).

    “I’m incredibly proud of what we’ve accomplished at Stronghold,” said Gregory Beard, Chief Executive Officer and Chairman of Stronghold. “We are thrilled by the strong endorsement from our stockholders, who recognize the significant value and potential of this merger and look forward to the next chapter for our stockholders as a part of Bitfarms.”

    On February 27, 2025, Stronghold held a special meeting of the Company’s stockholders (the “Special Meeting”). At the Special Meeting, the Company’s stockholders voted on and approved a proposal (the “Merger Agreement Proposal”) to approve and adopt the Agreement and Plan of Merger, dated as of August 21, 2024, as amended by Amendment No. 1 to the Agreement and Plan of Merger, dated as of September 12, 2024, by and among Bitfarms, Backbone Mining Solutions LLC, a Delaware limited liability company and an indirect, wholly owned subsidiary of Bitfarms (“BMS”), HPC & AI Megacorp, Inc., a Delaware corporation and a direct, wholly owned subsidiary of BMS, and the Company, and the related agreements and transactions. Approximately 99.6% of the votes cast at the Special Meeting – which is approximately 54.5% of the issued and outstanding shares of Stronghold Class A common stock and Class V common stock, voting together as a single class, entitled to vote at the Special Meeting – voted to approve the Merger Agreement Proposal.

    With the approval of the Merger Agreement Proposal, the Company expects the closing of the Merger to occur in March of 2025, subject to the satisfaction or waiver of the remaining conditions to close. A final report on the results of the Special Meeting will be made on a Form 8-K to be filed with the Securities and Exchange Commission (“SEC”).

    About Stronghold Digital Mining, Inc.

    Stronghold is a vertically integrated Bitcoin mining company with an emphasis on environmentally beneficial operations. Stronghold houses its miners at its wholly owned and operated Scrubgrass and Panther Creek plants, both of which are low-cost, environmentally beneficial coal refuse power generation facilities in Pennsylvania.

    Forward-Looking Statements

    This communication contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often address future business and financial events, conditions, expectations, plans or ambitions, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, and variations or negatives of these words, but not all forward-looking statements include such words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the consummation of the proposed transaction and the anticipated benefits thereof. All such forward-looking statements are based upon current plans, estimates, expectations and ambitions that are subject to risks, uncertainties and assumptions, many of which are beyond the control of Bitfarms and Stronghold, that could cause actual results to differ materially from those expressed in such forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: the risk that the Merger may not be completed on the anticipated terms in a timely manner or at all, which may adversely affect Stronghold’s business and the price of its Class A common stock, par value $0.0001 per share; the failure to satisfy any of the conditions to the Merger, including obtaining required stockholder and regulatory approvals; pending or potential litigation relating to the Merger that has been or could be instituted against Stronghold, Bitfarms or their respective directors or officers, including the effects of any outcomes related thereto; the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger agreement, including in circumstances requiring Stronghold to pay a termination fee; the effect of the announcement or pendency of the Merger on Stronghold’s business relationships, operating results and business generally; the risk that the Merger disrupts Stronghold’s current plans and operations; Stronghold’s ability to retain and hire key personnel and maintain relationships with key business partners and customers, and others with whom it does business, in light of the Merger; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the Merger; risks related to diverting management’s attention from Stronghold’s ongoing business operations; certain restrictions during the pendency of the Merger that may impact Stronghold’s ability to pursue certain business opportunities or strategic transactions; the possibility that the Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; those risks described in Section 4.19 of Bitfarms’ Annual Information Form for the year ended December 31, 2023, filed with the SEC as Exhibit 99.1 to Bitfarms’ Annual Report on Form 40-F, as amended in Amendment No. 1 to the Form 40-F, filed with the SEC on December 9, 2024 (the “Amended 40-F”) Section 19 of Bitfarms’ restated Management’s Discussion and Analysis for the year ended December 31, 2023, filed with the SEC as Exhibit 99.3 to the Amended 40-F, Section 19 of Bitfarms’ restated Management’s Discussion and Analysis for the three and nine months ended September 30, 2024, filed with the SEC on December 9, 2024, as Exhibit 99.2 to Bitfarms’ Current Report on Form 6-K/A; those risks described in Item 1A of Stronghold’s Annual Report on Form 10-K, filed with the SEC on March 8, 2024, Item 1A of Stronghold’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024, filed with the SEC on May 8, 2024, Item 1A of Stronghold’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024, filed with the SEC on August 14, 2024, Item 1A of Stronghold’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024, filed with the SEC on November 13, 2024, as amended pursuant to Form 10-Q/A, filed with the SEC on December 13, 2024, and subsequent reports on Forms 10-Q and 8-K; and those risks that are described in the registration statement on Form F-4 (File No. 333-282657) filed by Bitfarms with the SEC (the “registration statement”), which includes a proxy statement of Stronghold that also constitutes a prospectus of Bitfarms (the “proxy statement/prospectus”).

    These risks, as well as other risks associated with the proposed transaction, are more fully discussed in the proxy statement/prospectus included in the registration statement on Form F-4 filed with the SEC in connection with the proposed transaction. While the list of factors presented here and the list of factors to be presented in the registration statement on Form F-4 are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. We caution you not to place undue reliance on any of these forward-looking statements as they are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of new markets or market segments in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this communication. Neither Bitfarms nor Stronghold assumes any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. Neither future distribution of this communication nor the continued availability of this communication in archive form on Bitfarms’ or Stronghold’s website should be deemed to constitute an update or re-affirmation of these statements as of any future date.

    Investor Contact:

    Matt Glover

    Gateway Group, Inc.

    SDIG@gateway-grp.com

    1-949-574-3860

    Media Contact:

    contact@strongholddigitalmining.com

    The MIL Network –

  • MIL-OSI: Talen Energy Reports Full Year 2024 Results, Exceeds 2024 Guidance and Reaffirms 2025 Guidance

    Source: GlobeNewswire (MIL-OSI)

    Earnings Release Highlights

    • Full year GAAP Net Income (Loss) Attributable to Stockholders of $998 million.
    • Full year Adjusted EBITDA of $770 million and Adjusted Free Cash Flow of $283 million, exceeding the 2024 guidance midpoints.
    • Reaffirming 2025 guidance; 2026 outlook unchanged.
    • Reached reliability-must-run (“RMR”) settlement agreement with PJM and key stakeholders to run Brandon Shores and H.A. Wagner generation facilities through May 31, 2029.
    • Repurchased approximately 13 million shares in 2024 (22% of total outstanding shares).

    HOUSTON, Feb. 27, 2025 (GLOBE NEWSWIRE) — Talen Energy Corporation (“Talen,” the “Company,” “we,” or “our”) (NASDAQ: TLN), an independent power producer dedicated to powering the future, today reported its full year 2024 financial and operating results.

    “Talen had an exciting year focused on unlocking value from existing assets. Our fleet ran well this year, earning $770 million of Adjusted EBITDA and $283 million of Adjusted Free Cash Flow. We sold our data center campus to AWS and announced a major agreement providing power directly to them, making Talen the first power company to do so. We are actively executing under this arrangement and pursuing commercial and regulatory solutions for the Susquehanna ISA amendment,” said Talen President and Chief Executive Officer Mac McFarland.

    “We sold our ERCOT assets earlier in the year, realizing significant value that was largely returned to our shareholders, and in Q4, we reached a settlement with PJM and other stakeholders to continue running our Brandon Shores and H.A. Wagner generation facilities through May 2029, supporting grid reliability in Maryland.” McFarland continued. “We have simplified our capital structure and prioritized shareholder returns, repurchasing 22% of our outstanding shares this year. We remain focused on maximizing value and cash flow per share.”

    Summary of Financial and Operating Results (Unaudited)

    (Millions of Dollars)   Year Ended
    December 31,
    2024
    GAAP Net Income (Loss) Attributable to Stockholders     $998
    Adjusted EBITDA     770
    Adjusted Free Cash Flow     283
           
        Year Ended
    December 31,
    2024    		   Year Ended
    December 31,
    2023
    Total Generation (TWh) (a)   36.3     32.5  
    Carbon-Free Generation   50 %   55 %
    OSHA TRIR (b)   0.34     0.58  
    Fleet EFOF (c)   2.2 %   5.5 %
                 

    __________________
    (a) Total generation is net of station use consumption, where applicable, includes volumes produced by Susquehanna in support of Nautilus operations and includes generation from ERCOT assets through April 2024.
    (b) OSHA Total Recordable Incident Rate (“OSHA TRIR”) is the number of recordable incidents x 200,000 / total number of manhours worked. Only includes Talen-operated generation facilities (i.e., excludes Conemaugh and Keystone).
    (c) Fleet Equivalent Forced Outage Factor (“Fleet EFOF”) is the percentage of a given period in which a generating unit is not available due to forced outages and forced de-rates. Represents all generation facilities, including our portion of partially-owned facilities.

    For the year ended December 31, 2024, we reported GAAP Net Income (Loss) Attributable to Stockholders of $998 million, Adjusted EBITDA of $770 million and Adjusted Free Cash Flow of $283 million. 2024 Adjusted EBITDA and Adjusted Free Cash Flow exceeded the 2024 guidance midpoints of $765 million and $275 million, respectively.

    Given the impacts of fresh start accounting and the implementation of the plan of reorganization in the second quarter 2023, our full year 2024 results are not comparable to 2023.

    Full year 2024 results were supported by strong operational performance across the generation fleet, the benefits from hedging activities, the impact of the Nuclear PTC, and disciplined cost management, despite the absence of earnings from the ERCOT generation portfolio that was sold in May 2024.

    Our generation fleet continued to run reliably and safely, with a Fleet EFOF of 2.2% and an OSHA TRIR of 0.34. Total generation was 36.3 TWh, with 50% contributed from carbon-free nuclear generation at our Susquehanna nuclear facility. Also, our PJM gas-fired assets were dispatched more frequently during times of peak load than they were in 2023.

    Reaffirming 2025 Guidance; 2026 Outlook Unchanged

    (Millions of Dollars) Range
    2025E Adjusted EBITDA $925 – $1,175
    2025E Adjusted Free Cash Flow $395 – $595
       
    (Millions of Dollars) Range
    2026E Adjusted EBITDA $1,130 – $1,530
    2026E Adjusted Free Cash Flow $535 – $895
       

    RMR Arrangements

    In December 2024, we reached an agreement with PJM, FERC staff, Maryland PSC and public utilities on the terms of RMR arrangements for our Brandon Shores and H.A. Wagner generation facilities. On January 27, 2025, we filed with FERC the resulting Joint Offers of Settlement regarding both facilities’ RMR Continuing Operations Rates Schedules, and they remain subject to FERC approval. If approved, the proposed RMR arrangements will extend the operating life of these facilities through May 31, 2029, or until such time as the necessary transmission upgrades are placed into service. Beginning June 1, 2025, we expect to receive $145 million annually for Brandon Shores and $35 million for H.A. Wagner with some performance incentives. Additionally, we expect to receive reimbursement for variable costs and approved project investments.

    Update on Share Repurchase Program

    Since the start of 2024, we have repurchased approximately 22% of our outstanding shares for a total of $1.95 billion, with $1.1 billion of remaining share repurchase program capacity through year-end 2026. During the fourth quarter 2024, we repurchased approximately 5 million shares of stock from our largest shareholder. All share repurchase amounts are excluding transaction costs.

    Balance Sheet and Liquidity

    We are focused on maintaining net leverage below our target of 3.5x net debt-to-Adjusted EBITDA, along with ample liquidity. As of February 21, 2025, we had total available liquidity of approximately $1.2 billion, comprised of $474 million of unrestricted cash and $700 million of available capacity under the revolving credit facility. Our current net leverage ratio, utilizing the 2024 Adjusted EBITDA and net debt balance as of February 21, 2025, is approximately 3.3x.

    Update on Hedging Activities

    As of December 31, 2024, including the impact of the Nuclear PTC, we had hedged approximately 89% of our expected generation volumes for 2025 and 33% for 2026. The Company’s hedging program is a key component of our comprehensive risk policy and supports the objective of increasing cash flow stability while maintaining upside optionality.

    As an update on nuclear fuel supply activities, the nuclear fuel cycle is fully contracted through the 2027 fuel load, almost entirely contracted through 2028, and over 70% contracted through 2029. These percentages are based on total nuclear fuel costs across all phases and assume current market pricing for the portion not yet under contract.

    Earnings Call

    The Company will hold an earnings call on Thursday, February 27, 2025, at 4:30 p.m. EST (3:30 p.m. CST). To listen to the earnings call, please register in advance for the webcast here. For participants joining the call via phone, please register here prior to the start time to receive dial-in information. For those unable to participate in the live event, a digital replay of the earnings call will be archived for approximately one year and available on Talen’s Investor Relations website at https://ir.talenenergy.com/news-events/events.

    About Talen

    Talen Energy (NASDAQ: TLN) is a leading independent power producer and energy infrastructure company dedicated to powering the future. We own and operate approximately 10.7 gigawatts of power infrastructure in the United States, including 2.2 gigawatts of nuclear power and a significant dispatchable fossil fleet. We produce and sell electricity, capacity, and ancillary services into wholesale U.S. power markets, with our generation fleet principally located in the Mid-Atlantic and Montana. Our team is committed to generating power safely and reliably and delivering the most value per megawatt produced. Talen is also powering the digital infrastructure revolution. We are well-positioned to capture this significant growth opportunity, as data centers serving artificial intelligence increasingly demand more reliable, clean power. Talen is headquartered in Houston, Texas. For more information, visit https://www.talenenergy.com/.

    Investor Relations:

    Ellen Liu
    Senior Director, Investor Relations
    InvestorRelations@talenenergy.com

    Media:

    Taryne Williams
    Director, Corporate Communications
    Taryne.Williams@talenenergy.com

    Forward-Looking Statements

    This communication contains forward-looking statements within the meaning of the federal securities laws, which statements are subject to substantial risks and uncertainties. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this communication, or incorporated by reference into this communication, are forward-looking statements. Throughout this communication, we have attempted to identify forward-looking statements by using words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecasts,” “goal,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” or other forms of these words or similar words or expressions or the negative thereof, although not all forward-looking statements contain these terms. Forward-looking statements address future events and conditions concerning, among other things, capital expenditures, earnings, litigation, regulatory matters, hedging, liquidity and capital resources and accounting matters. Forward-looking statements are subject to substantial risks and uncertainties that could cause our future business, financial condition, results of operations or performance to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this communication. All of our forward-looking statements include assumptions underlying or relating to such statements that may cause actual results to differ materially from expectations, and are subject to numerous factors that present considerable risks and uncertainties.

    TALEN ENERGY CORPORATION AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF OPERATIONS
     
        Successor     Predecessor
    (Millions of Dollars, except share data)   Year Ended
    December 31, 2024    		   May 18 through
    December 31, 2023    		     January 1 through
    May 17, 2023
    Capacity revenues   $ 192     $ 133       $ 108  
    Energy and other revenues     1,881       1,156         1,042  
    Unrealized gain (loss) on derivative instruments     42       55         60  
    Operating Revenues     2,115       1,344         1,210  
                   
    Fuel and energy purchases     (694 )     (424 )       (176 )
    Nuclear fuel amortization     (123 )     (108 )       (33 )
    Unrealized gain (loss) on derivative instruments     20       (3 )       (123 )
    Energy Expenses     (797 )     (535 )       (332 )
                   
    Operating Expenses              
    Operation, maintenance and development     (592 )     (358 )       (285 )
    General and administrative     (163 )     (93 )       (51 )
    Depreciation, amortization and accretion     (298 )     (165 )       (200 )
    Impairments     (1 )     (3 )       (381 )
    Other operating income (expense), net     (38 )     (30 )       (37 )
    Operating Income (Loss)     226       160         (76 )
    Nuclear decommissioning trust funds gain (loss), net     178       108         57  
    Interest expense and other finance charges     (238 )     (176 )       (163 )
    Reorganization income (expense), net     —       —         799  
    Gain (loss) on sale of assets, net     884       7         50  
    Other non-operating income (expense), net     61       95         10  
    Income (Loss) Before Income Taxes     1,111       194         677  
    Income tax benefit (expense)     (98 )     (51 )       (212 )
    Net Income (Loss)     1,013       143         465  
    Less: Net income (loss) attributable to noncontrolling interest     15       9         (14 )
    Net Income (Loss) Attributable to Stockholders (Successor) / Member (Predecessor)   $ 998     $ 134       $ 479  
    Per Common Share (Successor)              
    Net Income (Loss) Attributable to Stockholders – Basic   $ 18.40     $ 2.27       N/A
    Net Income (Loss) Attributable to Stockholders – Diluted   $ 17.67     $ 2.26       N/A
    Weighted-Average Number of Common Shares Outstanding – Basic (in thousands)     54,254       59,029       N/A
    Weighted-Average Number of Common Shares Outstanding – Diluted (in thousands)     56,486       59,399       N/A
                           

     

    TALEN ENERGY CORPORATION AND SUBSIDIARIES

    CONSOLIDATED BALANCE SHEETS
     
        Successor
    (Millions of Dollars, except share data)   December 31,
    2024    		   December 31,
    2023
    Assets        
    Cash and cash equivalents   $ 328     $ 400  
    Restricted cash and cash equivalents     37       501  
    Accounts receivable     123       137  
    Inventory, net     302       375  
    Derivative instruments     66       89  
    Other current assets     184       52  
    Total current assets     1,040       1,554  
    Property, plant and equipment, net     3,154       3,839  
    Nuclear decommissioning trust funds     1,724       1,575  
    Derivative instruments     5       6  
    Other noncurrent assets     183       147  
    Total Assets   $ 6,106     $ 7,121  
             
    Liabilities and Equity        
    Long-term debt, due within one year   $ 17     $ 9  
    Accrued interest     18       32  
    Accounts payable and other accrued liabilities     266       344  
    Derivative instruments     —       32  
    Other current liabilities     154       69  
    Total current liabilities     455       486  
    Long-term debt     2,987       2,811  
    Derivative instruments     7       11  
    Postretirement benefit obligations     305       368  
    Asset retirement obligations and accrued environmental costs     468       469  
    Deferred income taxes     362       407  
    Other noncurrent liabilities     135       35  
    Total Liabilities   $ 4,719     $ 4,587  
    Commitments and Contingencies        
             
    Stockholders’ Equity        
    Common stock ($0.001 par value 350,000,000 shares authorized) (a)   $ —     $ —  
    Additional paid-in capital     1,725       2,346  
    Accumulated retained earnings (deficit)     (326 )     134  
    Accumulated other comprehensive income (loss)     (12 )     (23 )
    Total Stockholders’ Equity     1,387       2,457  
    Noncontrolling interests     —       77  
    Total Equity     1,387       2,534  
    Total Liabilities and Equity   $ 6,106     $ 7,121  
                     

    __________________

    (a) 45,961,910 and 59,028,843 shares issued and outstanding as of December 31, 2024 (Successor) and December 31, 2023 (Successor), respectively.

    TALEN ENERGY CORPORATION AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF CASH FLOWS
     
        Successor     Predecessor
    (Millions of Dollars)   Year Ended
    December 31, 2024    		   May 18 through
    December 31, 2023    		     January 1 through
    May 17, 2023
    Operating Activities              
    Net income (loss)   $ 1,013     $ 143       $ 465  
    Non-cash reconciliation adjustments:              
    (Gain) loss on AWS Data Campus Sale and ERCOT Sale     (886 )     —         —  
    Depreciation, amortization and accretion     285       157         208  
    NDT funds (gain) loss, net (excluding interest and fees)     (130 )     (78 )       (43 )
    Nuclear fuel amortization     123       108         33  
    Unrealized (gains) losses on derivative instruments     (69 )     (40 )       65  
    Deferred income taxes     (46 )     55         195  
    Impairments     1       3         381  
    (Gain) loss on sales of assets, net     —       (7 )       (50 )
    Reorganization (income) expense, net     —       —         (933 )
    Other     (26 )     7         7  
    Changes in assets and liabilities:              
    Inventory, net     67       (68 )       10  
    Accounts receivable     14       8         261  
    Other assets     (61 )     147         98  
    Accounts payable and accrued liabilities     (69 )     (49 )       (69 )
    Accrued interest     (15 )     28         (124 )
    Other liabilities     55       (12 )       (42 )
    Net cash provided by (used in) operating activities     256       402         462  
    Investing Activities              
    NDT funds investment purchases     (2,295 )     (1,290 )       (959 )
    NDT funds investment sale proceeds     2,263       1,265         949  
    Proceeds from AWS Data Campus Sale and ERCOT Sale     1,398       —         —  
    Nuclear fuel expenditures     (104 )     (45 )       (49 )
    Property, plant and equipment expenditures     (85 )     (116 )       (138 )
    Equity investments in affiliates     (10 )     (5 )       (8 )
    Proceeds from the sale of assets     2       8         46  
    Other investing activities     2       12         2  
    Net cash provided by (used in) investing activities     1,171       (171 )       (157 )
                               
    TALEN ENERGY CORPORATION AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF CASH FLOWS
     
        Successor     Predecessor
    (Millions of Dollars)   Year Ended
    December 31, 2024    		   May 18 through
    December 31, 2023    		     January 1 through
    May 17, 2023
    Financing Activities              
    Share repurchases     (1,958 )     —         —  
    TES debt issuance     849       —         —  
    TES debt repayments     (479 )     —         —  
    Cumulus Digital TLF repayment     (182 )     (15 )       —  
    Repurchase of noncontrolling interest     (125 )     (19 )       —  
    Cash settlement of restricted stock units     (32 )     —         —  
    Exercise or repurchase of warrants     (16 )     (40 )       —  
    Deferred financing costs     (13 )     (7 )       (74 )
    LMBE-MC TLB payments     —       (294 )       (7 )
    TLB-1 proceeds, net     —       288         —  
    Repayment of prepetition secured indebtedness     —       —         (3,898 )
    Financing proceeds at Emergence, net of discount     —       —         2,219  
    Contributions from member     —       —         1,393  
    Payment of make-whole premiums on prepetition secured indebtedness     —       —         (152 )
    Derivatives with financing elements     —       —         (20 )
    Other     (7 )     3         —  
    Net cash provided by (used in) financing activities     (1,963 )     (84 )       (539 )
    Net Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash and Cash Equivalents     (536 )     147         (234 )
    Beginning of period cash and cash equivalents and restricted cash and cash equivalents     901       754         988  
    End of period cash and cash equivalents and restricted cash and cash equivalents   $ 365     $ 901       $ 754  
                               

    Non-GAAP Financial Measures

    Adjusted EBITDA and Adjusted Free Cash flow, which we use as measures of our performance and liquidity, are not financial measures prepared under GAAP. Non-GAAP financial measures do not have definitions under GAAP and may be defined and calculated differently by, and not be comparable to, similarly titled measures used by other companies. Non-GAAP measures are not intended to replace the most comparable GAAP measures as indicators of performance. Generally, a non-GAAP financial measures is a numerical measure of financial performance, financial position, or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. Management cautions readers not to place undue reliance on the following non-GAAP financial measures, but to also consider them along with their most directly comparable GAAP financial measures. Non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analyzing our results as reported under GAAP.

    Adjusted EBITDA

    We use Adjusted EBITDA to: (i) assist in comparing operating performance and readily view operating trends on a consistent basis from period to period without certain items that may distort financial results; (ii) plan and forecast overall expectations and evaluate actual results against such expectations; (iii) communicate with our Board of Directors, shareholders, creditors, analysts, and the broader financial community concerning our financial performance; (iv) set performance metrics for our annual short-term incentive compensation; and (v) assess compliance with our indebtedness.

    Adjusted EBITDA is computed as net income (loss) adjusted, among other things, for certain: (i) nonrecurring charges; (ii) non-recurring gains; (iii) non-cash and other items; (iv) unusual market events; (v) any depreciation, amortization, or accretion; (vi) mark-to-market gains or losses; (vii) gains and losses on the nuclear facility decommissioning trust (“NDT”); (viii) gains and losses on asset sales, dispositions, and asset retirement; (ix) impairments, obsolescence, and net realizable value charges; (x) interest expense; (xi) income taxes; (xii) legal settlements, liquidated damages, and contractual terminations; (xiii) development expenses; (xiv) noncontrolling interests, except where otherwise noted; and (xv) other adjustments. Such adjustments are computed consistently with the provisions of our indebtedness to the extent that they can be derived from the financial records of the business. Pursuant to TES’s debt agreements, Cumulus Digital contributes to Adjusted EBITDA beginning in the first quarter 2024, following termination of the Cumulus Digital credit facility and associated cash flow sweep.

    Additionally, we believe investors commonly adjust net income (loss) information to eliminate the effect of nonrecurring restructuring expenses and other non-cash charges, which can vary widely from company to company and from period to period and impair comparability. We believe Adjusted EBITDA is useful to investors and other users of our financial statements to evaluate our operating performance because it provides an additional tool to compare business performance across companies and between periods. Adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to such items described above. These adjustments can vary substantially from company to company and period to period depending upon accounting policies, book value of assets, capital structure, and the method by which assets were acquired.

    Adjusted Free Cash Flow

    Adjusted Free Cash Flow is utilized by our chief operating decision makers to evaluate cash flow activities. Adjusted Free Cash Flow is computed as Adjusted EBITDA reduced by capital expenditures (including nuclear fuel but excluding development, growth, and (or) conversion capital expenditures), cash payments for interest and finance charges, cash payments for taxes (excluding income taxes paid from the NDT, taxes paid or deductions taken as a result of strategic asset sales, and benefits of the Nuclear PTC utilized to reduce taxes paid), and pension contributions.

    We believe Adjusted Free Cash Flow is useful to investors and other users of our financial statements in evaluating our operating performance because it provides them with an additional tool to determine a company’s ability to meet future obligations and to compare business performance across companies and across periods. Adjusted Free Cash Flow is widely used by investors to measure a company’s levered cash flow without regard to items such as ARO settlements; nonrecurring development, growth and conversion expenditures; and cash proceeds or payments for the sale or purchase of assets, which can vary substantially from company to company and from period to period depending upon accounting methods, book value of assets, capital structure, and the method by which assets were acquired.

    Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation

    The following table presents a reconciliation of the GAAP financial measures of “Net Income (Loss)” presented on the Consolidated Statements of Operations to the non-GAAP financial measures of Adjusted EBITDA and Adjusted Free Cash Flow:

        Successor     Predecessor
    (Millions of Dollars)   Year Ended
    December 31, 2024    		   May 18 through
    December 31, 2023    		     January 1 through
    May 17, 2023
    Net Income (Loss)   $ 1,013     $ 143       $ 465  
    Adjustments              
    Interest expense and other finance charges     238       176         163  
    Income tax (benefit) expense     98       51         212  
    Depreciation, amortization and accretion     298       165         200  
    Nuclear fuel amortization     123       108         33  
    Reorganization (gain) loss, net (a)     —       —         (799 )
    Unrealized (gain) loss on commodity derivative contracts     (62 )     (52 )       63  
    Nuclear decommissioning trust funds (gain) loss, net     (178 )     (108 )       (57 )
    Stock-based compensation expense     33       19         —  
    Long-term incentive compensation expense     21       2         —  
    (Gain) loss on asset sales, net (b)     (884 )     (7 )       (50 )
    Non-cash impairments (c)     1       3         381  
    Legal settlements and litigation costs (d)     (10 )     (84 )       1  
    Unusual market events (d)     (1 )     (19 )       14  
    Net periodic defined benefit cost     14       2         (3 )
    Operational and other restructuring activities (e) (f)     76       48         17  
    Development expenses     1       7         10  
    Non-cash inventory net realizable value, obsolescence, and other charges (g)     20       4         56  
    Noncontrolling interest     (21 )     (42 )       (14 )
    Other     (10 )     10         3  
    Total Adjusted EBITDA   $ 770     $ 426       $ 695  
                   
    Capital expenditures, net     (177 )     (112 )       (96 )
    Interest and finance charge payments     (252 )     (132 )       (173 )
    Tax payments     (4 )     (5 )       (5 )
    Pension contributions     (54 )     (8 )       (3 )
    Total Adjusted Free Cash Flow   $ 283     $ 169       $ 418  
                               

    _______________

    (a) See Note 4 to the FY 2024 Financial Statements for additional information.
    (b) See Note 20 to the FY 2024 Financial Statements for additional information.
    (c) See Note 10 to the FY 2024 Financial Statements for additional information.
    (d) See Note 12 to the FY 2024 Financial Statements for additional information.
    (e) The year ended December 31, 2024 (Successor) primarily includes the effects of nonrecurring ERCOT hedge settlements that occurred after the ERCOT Sale and severance payments associated with cost reduction initiatives.
    (f) The periods from May 18 through December 31, 2023 (Successor) and from January 1 through May 17, 2023 (Predecessor) include the effects of nonrecurring costs associated with exit from the Restructuring, severance costs associated with cost reduction initiatives, and nonrecurring post-Restructuring strategic initiative costs.
    (g) See Note 8 to the FY 2024 Financial Statements for additional information.

    Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation: 2025 Guidance

        2025E
    (Millions of dollars)   Low   High
    Net Income (Loss)   $ 155     $ 375  
             
    Adjustments        
    Interest expense and other finance charges     235       245  
    Income tax (benefit) expense     60       80  
    Depreciation, amortization and accretion     295       295  
    Nuclear fuel amortization     105       105  
    Unrealized (gain) loss on commodity derivative contracts     75       75  
    Adjusted EBITDA   $ 925     $ 1,175  
             
    Capital expenditures, net   $ (195 )   $ (205 )
    Interest and finance charge payments     (215 )     (225 )
    Tax payments     (50 )     (70 )
    Pension contributions     (70 )     (80 )
    Adjusted Free Cash Flow   $ 395     $ 595  
                     

    _______________

    Note: Figures are rounded to the nearest $5 million.

    The MIL Network –

  • MIL-OSI: SiriusPoint Announces Closing of CM Bermuda Transaction & Completion of Registered Secondary Offering of 4,106,631 Common Shares by Entities Associated with Daniel S. Loeb

    Source: GlobeNewswire (MIL-OSI)

    HAMILTON, Bermuda, Feb. 27, 2025 (GLOBE NEWSWIRE) — SiriusPoint Ltd. (“SiriusPoint”) (NYSE: SPNT), a global specialty insurer and reinsurer, announced today the closing of its previously announced transaction to repurchase all SiriusPoint common shares and warrants held by CM Bermuda Limited (“CM Bermuda”) for an aggregate purchase price of $733 million. The Company also announced today the completion of the previously announced registered secondary offering of 4,106,631 common shares by entities associated with Daniel S. Loeb (collectively, the “Loeb Entities”).

    Following today’s closing, CM Bermuda has no remaining ownership interest in SiriusPoint and ceases to have any representation on, or observer rights with respect to, SiriusPoint’s board of directors.

    The CM Bermuda transaction is immediately accretive to book value by 4% and is expected to be meaningfully accretive to SiriusPoint’s return on equity and earnings per share.

    As part of the registered secondary offering, SiriusPoint repurchased an aggregate of 500,000 of the common shares offered at the public offering price of $14 per share. Following the completion of the registered secondary offering and the cancellation of the CM Bermuda shares, the Loeb Entities own approximately 9.54% of SiriusPoint’s issued and outstanding common shares.

    SiriusPoint CEO, Scott Egan, said: “The completion of the transactions with CM Bermuda and the Loeb Entities follows a year of significant achievement for SiriusPoint during which we announced strong 2024 results. The completion of both transactions underlines the end of our major repositioning work, while the secondary offering reinforces the increasing investor interest in the business.

    The Company is well positioned to build on the continuing performance momentum of the past two years and drive further value creation for our shareholders in 2025 and beyond.”

    Contacts
    Investor Relations
    Liam Blackledge, SiriusPoint
    Liam.Blackledge@siriuspt.com
    + 44 203 772 3082

    Media
    Sarah Hills, Rein4ce
    Sarah.Hills@rein4ce.co.uk
    + 44 7718 882011 

    About SiriusPoint

    SiriusPoint is a global underwriter of insurance and reinsurance providing solutions to clients and brokers around the world. Bermuda-headquartered with offices in New York, London, Stockholm and other locations, we are listed on the New York Stock Exchange (SPNT). We have licenses to write Property & Casualty and Accident & Health insurance and reinsurance globally. Our offering and distribution capabilities are strengthened by a portfolio of strategic partnerships with Managing General Agents and Program Administrators within our Insurance & Services segment. With over $2.6 billion total capital, SiriusPoint’s operating companies have a financial strength rating of A- (Excellent) from AM Best, S&P and Fitch, and A3 from Moody’s.

    FORWARD-LOOKING STATEMENTS

    We make statements in this press release that are forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These risks and uncertainties include, but are not limited to, the impact of general economic conditions and conditions affecting the insurance and reinsurance industry; the adequacy of our reserves; fluctuation in the results of operations; pandemic or other catastrophic event; uncertainty of success in investing in early-stage companies, such as the risk of loss of an initial investment, highly variable returns on investments, delay in receiving return on investment and difficulty in liquidating the investment; our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market and investment income fluctuations; trends in insured and paid losses; regulatory and legal uncertainties; and other risk factors described in SiriusPoint’s Annual Report on Form 10-K for the period ended December 31, 2024.

    Except as required by applicable law or regulation, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, or new information, data or methods, future events, or other circumstances after the date of this press release.

    The MIL Network –

  • MIL-OSI: Inuvo Reports Record Fourth Quarter 2024 Revenue of $26.2 Million, 26% Year-Over-Year Growth and Net Income

    Source: GlobeNewswire (MIL-OSI)

    Q4 2024 Net Income of $141 thousand and Adjusted EBITDA of $1.2 million

    Inuvo management to host conference call today at 4:15 PM ET

    LITTLE ROCK, Ark., Feb. 27, 2025 (GLOBE NEWSWIRE) — Inuvo, Inc. (NYSE American: INUV), a leading provider of artificial intelligence AdTech solutions, today provided a business update and announced its financial results for the fourth quarter and full year ended December 31, 2024.

    Fourth Quarter 2024 Financial Highlights:

    • Revenue was a record $26.2 million, a 26% increase compared to $20.8 million in Q4 2023
    • Gross profit increased 20% to $21.8 million, compared to $18.2 million in Q4 2023
    • Net income was $141 thousand, compared to net loss of $2.4 million for Q4 2023
    • Adjusted EBITDA was $1.2 million, compared to a loss of $1.2 million for Q4 2023

    Full Year 2024 Financial Highlights:

    • Revenue increased 13% to $83.8 million, compared to $73.9 million in 2023
    • Gross profit increased 13% to $71.8 million, compared to $63.4 million in 2023
    • Net loss decreased by 45% to a loss of $5.8 million, compared to a net loss of $10.4 million in 2023
    • Adjusted EBITDA loss improved sixfold to $816,000 compared to $5.3 million in 2023
    • $230,000 in Net Cash from Operating activities was generated in 2024

    2024 Operational Highlights:

    • Secured a Master Services Agreement with one of the largest retailers in the world
    • Signed 33 new agencies/brands and one new platform during the year
    • Secured a $10.0 million credit line in July
    • Launched enhancements to the IntentKey Self-Serve Platform, an advanced AI agent specifically designed for audience modeling

    Richard Howe, CEO of Inuvo, stated, “Q4 2024 was a record-breaking quarter, delivering 26% year-over-year growth and generating $26.2 million in revenue—our largest quarter ever. This strong performance contributed to a 13% revenue increase for the full fiscal year. Over the past 18 quarters, we have sustained an approximately 7% compounded quarterly growth rate. This year, all our key financial metrics had strong year-over-year improvements. Notably, in Q4, we achieved positive net income and adjusted EBITDA.”

    Mr. Howe continued, “We made a number of significant technological advancements in 2024, most notably the enhancements to the IntentKey Self-Serve Platform. This groundbreaking innovation democratizes advertising by allowing anyone of any caliber to describe and then immediately execute targeting, giving the AI nothing other than some simple audience descriptions.”

    Financial Results for the Fourth Quarter and Full Year Ended December 31, 2024

    Net revenue for the fourth quarter of 2024 totaled $26.2 million, compared to $20.8 million for the same period last year, a 26% year-over-year increase. The higher revenue was due to increasing demand within both Platforms and Agencies & Brands. Net revenue for the year ended December 31, 2024 totaled $83.8 million, compared to $73.9 million during the same period in 2023, a 13% year-over-year increase.

    Cost of revenue for the fourth quarter of 2024, totaled $4.4 million compared to $2.6 million for the same period last year. Cost of revenue for the full year ended December 31, 2024, totaled $12.0 million, as compared to $10.5 million for the same period last year. The increase in the cost of revenue for the three months and full year ended December 31, 2024, as compared to the same period last year, was due to higher revenue within a Platform client this year.

    Gross profit for the fourth quarter of 2024 and full year ended December 31, 2024 totaled $21.8 million and $71.8 million, respectively, as compared $18.2 million and $63.4 million, respectively, for the same periods last year. Gross profit margin for the fourth quarter of 2024 and the full year ended December 31, 2024 was approximately 83.1% and 85.6%, respectively, as compared to 87.3% and 85.8%, respectively, for the same periods last year.

    Operating expenses for the fourth quarter of 2024 totaled $21.5 million, compared to $20.6 million for the same period last year. Operating expenses for the full year ended December 31, 2024 totaled $77.3 million, compared to $73.8 million for the same period last year. The higher operating expenses for the year ended December 31, 2024 was primarily driven by a 14.8% increase in Marketing costs compared to the same period in 2023. This increase was largely attributable to higher revenue from Platform advertisers.

    Net interest expense/income for the fourth quarter of 2024 and the full year ended December 31, 2024 was approximately an expense of $103 thousand and an income of $267 thousand, respectively, compared to an income of approximately $8 thousand and an expense of $30 thousand for the same periods last year, respectively. The higher interest expense this year was due to increased borrowing from our line of credit.

    Other expense/income for both the fourth quarter of 2024 and the full year ended December 31, 2024 was income of approximately $27 thousand, respectively, compared to income of approximately $0 and $15 thousand for the same periods last year, respectively. The income for this year was due to setup charges for new Platform partners. Last year’s income was due to unrealized and realized gains on trading securities.

    Net income for the fourth quarter of 2024 was $141 thousand, or $0.00 per basic and diluted share, as compared to net loss of $2.4 million, or $0.02 per basic and diluted share, for the same period last year. Net loss for the full year ended December 31, 2024 totaled $5.8 million, or $0.04 per basic and diluted share, as compared to net loss of $10.4 million, or $0.08 per basic and diluted share, for the same period last year.

    Adjusted EBITDA [see reconciliation table below] was approximately $1.2 million in the fourth quarter of 2024, compared to an Adjusted EBITDA loss of approximately $1.2 million for the same period last year. Adjusted EBITDA was a loss of approximately $816 thousand for the full year ended December 31, 2024, compared to a loss of approximately $5.3 million for the same period last year.

    Liquidity and Capital Resources:

    On December 31, 2024, Inuvo had $2.5 million in cash and cash equivalents, an unused working capital facility of $10.0 million and no debt.

    As of February 21, 2025, Inuvo had 142,795,483 common shares issued and outstanding.

    Conference Call Details: 
    Date: Thursday, February 27, 2025
    Time: 4:15 p.m. Eastern Standard Time 
    Toll-free Dial-in Number: 1-800-717-1738
    International Dial-in Number: 1-646-307-1865
    Conference ID: 11158080
    Webcast Link: HERE

    A telephone replay will be available through Thursday, March 13, 2025. To access the replay, please dial 1- 844-512-2921 (domestic) or 1-412-317-6671 (international). At the system prompt, please enter the code 11158080 followed by the # sign. You will then be prompted for your name, company, and phone number. Playback will then automatically begin.

    About Inuvo

    Inuvo®, Inc. (NYSE American: INUV) is a market leader in Artificial Intelligence built for advertising. Its IntentKey AI solution is a first-of-its-kind proprietary and patented technology capable of identifying and actioning to the reasons why consumers are interested in products, services, or brands, not who those consumers are. To learn more, visit www.inuvo.com.

    Safe Harbor / Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, without limitation risks detailed from time to time in our filings with the Securities and Exchange Commission (the “SEC”), and represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in Inuvo, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as filed on February 27, 2025, and our other filings with the SEC. Inuvo cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Inuvo does not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise. Inuvo further expressly disclaims any written or oral statements made by a third-party regarding the subject matter of this press release. The information which appears on our websites and our social media platforms is not part of this press release.

    Inuvo Company Contact:
    Wally Ruiz
    Chief Financial Officer
    Tel (501) 205-8397
    wallace.ruiz@inuvo.com

    Investor Relations:
    David Waldman / Natalya Rudman
    Crescendo Communications, LLC
    Tel: (212) 671-1020
    inuv@crescendo-ir.com

    (tables follow)

    INUVO, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
                           
      Three Months Ended   Twelve Months Ended
      December 31   December 31   December 31
    		   December 31
        2024       2023       2024       2023  
    Net revenue $ 26,189,924     $ 20,842,095     $ 83,793,859     $ 73,911,528  
    Cost of revenue   4,433,905       2,643,543       12,033,777       10,477,272  
    Gross profit   21,756,019       18,198,552       71,760,082       63,434,256  
    Operating expenses:   83.1 %     87.3 %     85.6 %     85.8 %
    Marketing costs   17,122,706       15,212,600       59,663,061       51,982,572  
    Compensation   2,703,309       3,591,109       12,065,783       13,793,309  
    General and administrative   1,709,887       1,821,821       5,545,049       8,050,590  
    Total operating expenses   21,535,902       20,625,530       77,273,893       73,826,771  
    Operating income (loss)   220,117       (2,426,978 )     (5,513,811 )     (10,392,515 )
    Interest expense (income), net   102,910       (7,884 )     266,772       29,570  
    Other income   26,812       –       26,812       14,668  
    Income tax expense (benefit)   2,678       (17,764 )     8,030       (17,764 )
    Net income (loss)   141,341       (2,401,330 )     (5,761,801 )     (10,389,653 )
    Other comprehensive income:                              
    Unrealized loss on marketable securities   –       –       –       84,868  
    Comprehensive income (loss) $ 141,341     $ (2,401,330 )   $ (5,761,801 )   $ (10,304,785 )
                                   
    Net loss per share, basic and diluted $0.00     ($0.02 )   ($0.04 )   ($0.08 )
    Weighted average shares outstanding:                              
    Basic   140,494,192       127,381,051       139,968,374       131,116,370  
    Diluted   140,494,192       127,381,051       139,968,374       131,116,370  
                 
    INUVO, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
     
           
      December 31   December 31
      2024     2023
    Assets      
           
    Cash and cash equivalent $ 2,459,245     $ 4,440,454  
    Accounts receivable, net   12,545,771       9,226,956  
    Prepaid expenses and other current assets   639,805       1,076,121  
    Total current assets   15,644,821       14,743,531  
           
    Property and equipment, net   1,792,903       1,680,788  
           
    Goodwill   9,853,342       9,853,342  
    Intangible assets, net of accumulated amortization   3,897,875       4,664,791  
    Other assets   1,006,990       1,431,692  
           
    Total assets $ 32,195,931     $ 32,374,144  
           
    Liabilities and Stockholders’ Equity      
           
    Current liabilities      
    Accounts payable $ 8,422,351     $ 6,432,120  
    Accrued expenses and other current liabilities   9,463,537       8,100,354  
    Total current liabilities   17,885,888       14,532,474  
           
    Long-term liabilities   835,271       859,484  
           
    Total stockholders’ equity   13,474,772       16,982,186  
    Total liabilities and stockholders’ equity $ 32,195,931     $ 32,374,144  
    RECONCILIATION OF LOSS FROM CONTINUING OPERATIONS BEFORE TAXES TO ADJUSTED EBITDA
    (unaudited)
                     
      Three Months Ended   Twelve Months Ended
        December 31     December 31   December 31   December 31
        2024       2023       2024       2023  
    Net income (loss)   141,341       (2,401,330 )   $ (5,761,801 )   $ (10,389,653 )
    Interest expense (income), net   102,910       (7,884 )     266,772       29,570  
    Income tax expense (benefit)   2,678       (17,764 )     8,030       (17,764 )
    Depreciation and amortization on PP&E   446,608       425,106       1,745,261       1,670,868  
    Amortization   123,412       264,523       824,272       1,080,690  
    EBITDA   816,949       (1,737,349 )     (2,917,466 )     (7,626,289 )
    Stock-based compensation   413,911       514,613       1,501,444       1,986,296  
    Non recurring items:                  
    Unrealized loss on marketable securities                   14,668  
    Doubtful account reserve                   361,097  
    Impairment & amortization of services agreement               600,000      
    Adjusted EBITDA   1,230,860       (1,222,736 )     (816,022 )     (5,264,228 )
                       

    Reconciliation of Operating Loss to EBITDA and Adjusted EBITDA 

    We present EBITDA and Adjusted EBITDA as a supplemental measure of our performance. We defined EBITDA as Net loss plus (i) interest expense, (ii) income tax expense, (iii) depreciation, and (iv) amortization. We further define Adjusted EBITDA as EBITDA plus (v) stock-based compensation and (vi) certain identified expenses that are not expected to recur or be representative of future ongoing operation of the business. These adjustments are itemized above. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same or similar to some of the adjustments in the presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

    The MIL Network –

  • MIL-OSI: AvePoint Announces Fourth Quarter and Full Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Full year SaaS revenue of $230.7 million, representing 43% year-over-year growth, 44% on a constant currency basis
    Full year Total revenue of $330.5 million, representing 22% year-over-year growth, 22% on a constant currency basis
    Total ARR of $327.0 million, representing 24% year-over-year growth, 25% adjusted for FX

    JERSEY CITY, N.J., Feb. 27, 2025 (GLOBE NEWSWIRE) — AvePoint (NASDAQ: AVPT), the global leader in data security, governance and resilience, today announced financial results for the fourth quarter and full year ended December 31, 2024. 

    “Our fourth quarter was an outstanding close to 2024, and we are pleased with the team’s steady focus and broad-based execution,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. “Our results this year – as well as our outlook for 2025 – reflect the growing demand from companies around the world for platform solutions that enable them to prepare, secure and optimize their data for AI, as well as our ongoing improvement in effectively and efficiently delivering on that demand. Today, AvePoint stands at the forefront of addressing the pivotal challenges in data security, governance, and resilience, and we are excited for the many opportunities we see in 2025 and beyond to continue driving shareholder value.”

    Fourth Quarter 2024 Financial Highlights

    • Revenue: Total revenue was $89.2 million, up 20% from the fourth quarter of 2023 and up 20% on a constant currency basis. Within total revenue, SaaS revenue was $64.8 million, up 43% from the fourth quarter of 2023 and up 44% on a constant currency basis.
    • Gross Profit: GAAP gross profit was $67.3 million, compared to $55.0 million for the fourth quarter of 2023. Non-GAAP gross profit was $67.3 million, compared to $56.1 million for the fourth quarter of 2023. Non-GAAP gross margin was 75.5%, compared to 75.2% for the fourth quarter of 2023.
    • Operating Income/(Loss): GAAP operating income was $4.9 million, compared to $0.9 million for the fourth quarter of 2023. Non-GAAP operating income was $14.5 million, compared to $10.3 million for the fourth quarter of 2023.

    Full Year 2024 Financial Highlights

    • Revenue: Total revenue was $330.5 million, up 22% from the full year 2023 and up 22% on a constant currency basis. Within total revenue, SaaS revenue was $230.7 million, up 43% from the full year 2023 and up 44% on a constant currency basis.
    • Gross Profit: GAAP gross profit was $248.0 million, compared to $194.4 million for the full year 2023. Non-GAAP gross profit was $250.2 million, compared to $198.5 million for the full year 2023. Non-GAAP gross margin was 75.7%, compared to 73.0% for the full year 2023.
    • Operating Income/(Loss): GAAP operating income was $7.2 million, compared to a GAAP operating loss of $(15.4) million for the full year 2023. Non-GAAP operating income was $47.6 million, compared to $22.2 million for the full year 2023.
    • Cash and short-term investments: $290.9 million as of December 31, 2024.
    • Cash from operations: For the twelve months ended December 31, 2024, the Company generated $88.9 million of cash from operations, compared to $34.7 million in the prior year period.

    Fourth Quarter 2024 Key Performance Indicators and Recent Business Highlights

    • ARR as of December 31, 2024 was $327.0 million, representing growth of 24% year-over-year. Adjusted for FX, ARR grew 25% year-over-year.
    • Adjusted for FX, dollar-based gross retention rate was 89%, while dollar-based net retention rate was 111%. On an as-reported basis, dollar-based gross retention rate was 88%, while dollar-based net retention rate was 110%.
    • Introduced first-to-market benchmarking capabilities within AvePoint tyGraph for Microsoft 365 Copilot to provide organizations critical insights into their AI adoption and usage patterns.
    • Announced the launch of AvePoint’s AI Lab in Singapore, to advance AI-driven research and innovation that will address global industry challenges and embed AI across the AvePoint Confidence Platform.
    • Named to the inaugural Forbes America’s Best Companies List, which recognizes the top 300 companies in the U.S. across over 60 measures, including financial performance, customer and employee satisfaction, cybersecurity, and more.

    Financial Outlook

    For the first quarter of 2025, the Company expects:

    • Total revenues of $87.8 million to $89.8 million, or year-over-year growth of 18% to 21%. On a constant currency basis, the Company expects revenue growth of 19% to 22%.
    • Non-GAAP operating income of $11.1 million to $12.1 million.

    For the full year 2025, the Company expects:

    • Total ARR of $401.3 million to $407.3 million, or year-over-year growth of 23% to 25%. Adjusted for FX, the Company expects ARR growth of 24% to 26%.
    • Total revenues of $380.0 million to $388.0 million, or year-over-year growth of 15% to 17%. On a constant currency basis, the Company expects revenue growth of 17% to 19%.
    • Non-GAAP operating income of $52.3 million to $55.3 million.

    Quarterly Conference Call

    AvePoint will host a conference call today, February 27, 2025, to review its fourth quarter and full year 2024 financial results and to discuss its financial outlook. The call is scheduled to begin at 4:30pm ET. You may access the call and register with a live operator by dialing 1 (833) 816-1428 for US participants and 1 (412) 317-0520 for outside the US. The passcode for the call is 8306574. Investors can also join by webcast by visiting https://www.avepoint.com/ir/events-and-presentations. The webcast will be available live, and a replay will be available following the completion of the live broadcast for approximately 90 days.

    About AvePoint

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

    Non-GAAP Financial Measures and Other Key Metrics

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

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

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

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

    Disclosure Information

    AvePoint uses its Investor Relations website (https://avepoint.com/ir) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

    Forward-Looking Statements

    This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and other federal securities laws including statements regarding the future performance of and market opportunities for AvePoint. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: changes in the competitive and regulated industries in which AvePoint operates, variations in operating performance across competitors, changes in laws and regulations affecting AvePoint’s business and changes in AvePoint’s ability to implement business plans, forecasts, and ability to identify and realize additional opportunities, and the risk of downturns in the market and the technology industry. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of AvePoint’s most recent Annual Report on Form 10-K and its registration statement on Form S-1 and related prospectus and prospectus supplements filed with the SEC. Copies of these and other documents filed by AvePoint from time to time are available on the SEC’s website, www.sec.gov. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and AvePoint does not assume any obligation and does not intend to update or revise these forward-looking statements after the date of this release, whether as a result of new information, future events, or otherwise, except as required by law. AvePoint does not give any assurance that it will achieve its expectations. Unless the context otherwise indicates, references in this press release to the terms “AvePoint”, “the Company”, “we”, “our” and “us” refer to AvePoint, Inc. and its subsidiaries.

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

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

    AvePoint, Inc.
    Condensed Consolidated Statements of Income
    (In thousands, except per share amounts)
    (Unaudited)
     
      Three Months Ended     Year Ended  
      December 31,     December 31,  
      2024     2023     2024     2023  
    Revenue:                              
    SaaS $ 64,847     $ 45,260     $ 230,667     $ 160,961  
    Term license and support   9,432       12,270       44,560       52,744  
    Services   12,228       13,788       44,036       44,795  
    Maintenance   2,676       3,306       11,219       13,325  
    Total revenue   89,183       74,624       330,482       271,825  
    Cost of revenue:                              
    SaaS   11,405       9,338       41,544       35,924  
    Term license and support   382       505       1,584       1,946  
    Services   9,980       9,576       38,757       38,807  
    Maintenance   154       199       641       783  
    Total cost of revenue   21,921       19,618       82,526       77,460  
    Gross profit   67,262       55,006       247,956       194,365  
    Operating expenses:                              
    Sales and marketing   32,410       29,127       122,869       112,105  
    General and administrative   17,127       15,592       69,222       61,271  
    Research and development   12,872       9,409       48,699       36,340  
    Total operating expenses   62,409       54,128       240,790       209,716  
    Income (loss) from operations   4,853       878       7,166       (15,351 )
    Other expense, net   (23,458 )     (1,687 )     (31,565 )     (3,263 )
    Loss before income taxes   (18,605 )     (809 )     (24,399 )     (18,614 )
    Income tax (benefit) expense   (1,427 )     (5,245 )     4,743       2,887  
    Net (loss) income $ (17,178 )   $ 4,436     $ (29,142 )   $ (21,501 )
    Net income (loss) attributable to noncontrolling interest   7       167       (52 )     224  
    Net (loss) income available to common stockholders $ (17,185 )   $ 4,269     $ (29,090 )   $ (21,725 )
    Earnings per share:                              
    Basic $ (0.09 )   $ 0.02     $ (0.16 )   $ (0.12 )
    Diluted $ (0.09 )   $ 0.02     $ (0.16 )   $ (0.12 )
    Weighted average shares outstanding:                              
    Basic   186,605       181,152       183,721       182,257  
    Diluted   186,605       198,570       183,721       182,257  

     

    AvePoint, Inc.
    Condensed Consolidated Balance Sheets
    (In thousands, except par value)
     
      December 31,     December 31,  
      2024     2023  
    Assets              
    Current assets:              
    Cash and cash equivalents $ 290,735     $ 223,162  
    Short-term investments   167       3,721  
    Accounts receivable, net   87,365       85,877  
    Prepaid expenses and other current assets   16,528       12,824  
    Total current assets   394,795       325,584  
    Property and equipment, net   5,289       5,118  
    Goodwill   17,715       19,156  
    Intangible assets, net   8,889       10,546  
    Operating lease right-of-use assets   15,954       13,908  
    Deferred contract costs   59,838       54,675  
    Other assets   16,575       13,595  
    Total assets $ 519,055     $ 442,582  
    Liabilities, mezzanine equity, and stockholders’ equity              
    Current liabilities:              
    Accounts payable $ 2,352     $ 1,384  
    Accrued expenses and other current liabilities   76,135       53,766  
    Current portion of deferred revenue   144,468       121,515  
    Total current liabilities   222,955       176,665  
    Long-term operating lease liabilities   9,909       9,383  
    Long-term portion of deferred revenue   8,840       7,741  
    Earn-out shares liabilities   —       18,346  
    Other liabilities   6,403       5,603  
    Total liabilities   248,107       217,738  
    Commitments and contingencies              
    Mezzanine equity              
    Redeemable noncontrolling interest   —       6,038  
    Total mezzanine equity   —       6,038  
    Stockholders’ equity              
    Common stock, $0.0001 par value; 1,000,000 shares authorized, 194,071 and 184,652 shares issued and outstanding as of December 31, 2024 and 2023, respectively   19       18  
    Additional paid-in capital   779,007       667,881  
    Accumulated other comprehensive income   576       3,196  
    Accumulated deficit   (510,448 )     (460,496 )
    Noncontrolling interest   1,794       8,207  
    Total stockholders’ equity   270,948       218,806  
    Total liabilities, mezzanine equity, and stockholders’ equity $ 519,055     $ 442,582  
    AvePoint, Inc.
    Condensed Consolidated Statements of Cash Flows
    (In thousands)
    (Unaudited)
     
      Year Ended  
      December 31,  
      2024     2023  
    Operating activities              
    Net loss $ (29,142 )   $ (21,501 )
    Adjustments to reconcile net loss to net cash provided by operating activities:              
    Depreciation and amortization   5,382       4,687  
    Operating lease right-of-use assets expense   6,270       6,234  
    Foreign currency remeasurement loss   866       —  
    Stock-based compensation   39,059       36,048  
    Deferred income taxes   498       (864 )
    Other   (67 )     1,068  
    Change in value of earn-out and warrant liabilities   37,276       11,454  
    Changes in operating assets and liabilities:              
    Accounts receivable   (4,898 )     (19,448 )
    Prepaid expenses and other current assets   (3,350 )     (2,773 )
    Deferred contract costs and other assets   (8,482 )     (7,687 )
    Accounts payable, accrued expenses, operating lease liabilities and other current liabilities   16,046       609  
    Deferred revenue   29,436       26,867  
    Net cash provided by operating activities   88,894       34,694  
    Investing activities              
    Maturities of investments   5,353       2,620  
    Purchases of investments   (1,819 )     (3,497 )
    Capitalization of internal-use software   (1,211 )     (1,434 )
    Purchase of property and equipment   (3,044 )     (2,087 )
    Issuance of notes receivables   (1,750 )     (1,250 )
    Other investing activities   (130 )     —  
    Net cash used in investing activities   (2,601 )     (5,648 )
    Financing activities              
    Repurchase of common stock   (33,053 )     (39,036 )
    Proceeds from warrant exercises   17,182       —  
    Proceeds from stock option exercises   11,033       5,569  
    Redemption of redeemable noncontrolling interest   (6,130 )     —  
    Purchase of public warrants   (3,991 )     —  
    Company earn-out shares settled in cash   (572 )     —  
    Repayments of finance leases   (6 )     (64 )
    Payments of debt issuance costs   —       (136 )
    Net cash used in financing activities   (15,537 )     (33,667 )
    Effect of exchange rates on cash   (3,183 )     595  
    Net decrease in cash and cash equivalents   67,573       (4,026 )
    Cash and cash equivalents at beginning of period   223,162       227,188  
    Cash and cash equivalents at end of period $ 290,735     $ 223,162  
    Supplemental disclosures of cash flow information              
    Income taxes paid $ 6,882     $ 6,112  
    Company earn-out shares issuance $ 53,871     $ —  
    AvePoint, Inc.
    Non-GAAP Reconciliations
    (In thousands)
    (Unaudited)
     
      Three Months Ended     Year Ended  
      December 31,     December 31,  
      2024     2023     2024     2023  
    Non-GAAP operating income                              
    GAAP operating income (loss) $ 4,853     $ 878     $ 7,166     $ (15,351 )
    Stock-based compensation expense   9,252       9,073       39,059       36,048  
    Amortization of acquired intangible assets   356       350       1,420       1,456  
    Non-GAAP operating income $ 14,461     $ 10,301     $ 47,645     $ 22,153  
    Non-GAAP operating margin   16.2 %     13.8 %     14.4 %     8.1 %
                                   
                                   
                                   
    Non-GAAP gross profit                              
    GAAP gross profit $ 67,262     $ 55,006     $ 247,956     $ 194,365  
    Stock-based compensation expense   (201 )     869       1,315       3,161  
    Amortization of acquired intangible assets   239       239       961       964  
    Non-GAAP gross profit $ 67,300     $ 56,114     $ 250,232     $ 198,490  
    Non-GAAP gross margin   75.5 %     75.2 %     75.7 %     73.0 %
                                   
    Non-GAAP sales and marketing                              
    GAAP sales and marketing $ 32,410     $ 29,127     $ 122,869     $ 112,105  
    Stock-based compensation expense   (2,281 )     (2,251 )     (8,965 )     (9,518 )
    Amortization of acquired intangible assets   (117 )     (111 )     (459 )     (492 )
    Non-GAAP sales and marketing $ 30,012     $ 26,765     $ 113,445     $ 102,095  
    Non-GAAP sales and marketing as a % of revenue   33.7 %     35.9 %     34.3 %     37.6 %
                                   
    Non-GAAP general and administrative                              
    GAAP general and administrative $ 17,127     $ 15,592     $ 69,222     $ 61,271  
    Stock-based compensation expense   (5,032 )     (4,787 )     (20,483 )     (19,338 )
    Non-GAAP general and administrative $ 12,095     $ 10,805     $ 48,739     $ 41,933  
    Non-GAAP general and administrative as a % of revenue   13.6 %     14.5 %     14.7 %     15.4 %
                                   
    Non-GAAP research and development                              
    GAAP research and development $ 12,872     $ 9,409     $ 48,699     $ 36,340  
    Stock-based compensation expense   (2,140 )     (1,166 )     (8,296 )     (4,031 )
    Non-GAAP research and development $ 10,732     $ 8,243     $ 40,403     $ 32,309  
    Non-GAAP research and development as a % of revenue   12.0 %     11.0 %     12.2 %     11.9 %

    The MIL Network –

  • MIL-OSI: red violet Announces Fourth Quarter and Full Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Fourth Quarter Revenue Increased 30% to a Record $19.6 Million, Producing $6.7 Million of Cash Flow from Operations

    Full Year 2024 Revenue Increased 25% to $75.2 Million, Generating GAAP EPS of $0.50

    BOCA RATON, Fla., Feb. 27, 2025 (GLOBE NEWSWIRE) — Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the fourth quarter and full year ended December 31, 2024.

    “We are proud to announce record-breaking financial results for 2024, including record revenue in the fourth quarter, which marks a significant achievement as we defied the historic seasonality we typically experience during that quarter,” stated Derek Dubner, red violet’s CEO. “The market is recognizing what we have known all along—we have built the leading technology platform with superior solutions and unique capabilities that outperform even our larger competitors. Our ability to consistently deliver value to our customers fuels our exceptional growth and profitability, and we remain committed to pushing the boundaries of innovation and penetrating our markets to further expand our leadership. With strong momentum, we are well-positioned for 2025 and beyond.”

    Fourth Quarter Financial Results

    For the three months ended December 31, 2024 as compared to the three months ended December 31, 2023:

    • Total revenue increased 30% to $19.6 million.
    • Gross profit increased 43% to $13.7 million. Gross margin increased to 70% from 64%.
    • Adjusted gross profit increased 37% to $16.1 million. Adjusted gross margin increased to 82% from 78%.
    • Net income was $0.9 million compared to a net loss of $1.1 million, which resulted in earnings of $0.06 per basic and diluted share. Net income margin was 4% compared to a net loss margin of 7%.
    • Adjusted EBITDA increased 68% to $4.5 million. Adjusted EBITDA margin increased to 23% from 18%.
    • Adjusted net income increased 390% to $1.3 million, which resulted in adjusted earnings of $0.10 and $0.09 per basic and diluted share, respectively.
    • Cash from operating activities increased 59% to $6.7 million.
    • Cash and cash equivalents were $36.5 million as of December 31, 2024.

    Full Year Financial Results

    For the year ended December 31, 2024 as compared to the year ended December 31, 2023:

    • Total revenue increased 25% to $75.2 million.
    • Gross profit increased 33% to $51.8 million. Gross margin increased to 69% from 65%.
    • Adjusted gross profit increased 30% to $61.2 million. Adjusted gross margin increased to 81% from 78%.
    • Net income was $7.0 million compared to $13.5 million (inclusive of a one-time deferred income tax benefit of $10.3 million in 2023), which resulted in earnings of $0.51 and $0.50 per basic and diluted share, respectively. Net income margin decreased to 9% from 22%.
    • Adjusted EBITDA increased 44% to $23.6 million. Adjusted EBITDA margin increased to 31% from 27%.
    • Adjusted net income increased 42% to $11.5 million, which resulted in adjusted earnings of $0.83 and $0.82 per basic and diluted share, respectively.
    • Cash from operating activities increased 59% to $24.0 million.

    Fourth Quarter and Recent Business Highlights

    • Added 183 customers to IDI™ during the fourth quarter, ending the year with 8,926 customers.
    • Added 18,451 users to FOREWARN® during the fourth quarter, ending the year with 303,418 users. Over 525 REALTOR® Associations are now contracted to use FOREWARN.
    • Continued growth in the onboarding of higher-tier customers, with 96 customers contributing over $100,000 of revenue in 2024 compared to 72 customers in 2023.
    • Demonstrating strong operational performance, financial resilience, and a disciplined approach to capital allocation focused on shareholder value, we repurchased 292,744 shares of common stock in 2024 at an average price of $19.81 per share. Additionally, in the fourth quarter, we announced a special cash dividend of $0.30 per share payable February 14, 2025, all while continuing ongoing investments in innovation, infrastructure, and market expansion.      

    Conference Call

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

    About red violet®

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

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

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

    Use of Non-GAAP Financial Measures

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

    FORWARD-LOOKING STATEMENTS

    This press release contains “forward-looking statements,” as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as “expects,” “plans,” “projects,” “will,” “may,” “anticipate,” “believes,” “should,” “intends,” “estimates,” and other words of similar meaning. Such forward looking statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control and which may cause results to differ materially from expectations, including whether we will continue pushing the boundaries of innovation and penetrating our markets to further expand our leadership and whether we are well-positioned for 2025 and beyond. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release and are advised to consider the factors listed above together with the additional factors under the heading “Forward-Looking Statements” and “Risk Factors” in red violet’s Form 10-K for the year ended December 31, 2023 filed on March 7, 2024, as may be supplemented or amended by the Company’s other SEC filings, including the Form 10-K for year ended December 31, 2024 expected to be filed today. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

               
    RED VIOLET, INC.
    CONSOLIDATED BALANCE SHEETS
    (Amounts in thousands, except share data)
               
      December 31, 2024     December 31, 2023  
    ASSETS:              
    Current assets:              
    Cash and cash equivalents $ 36,504     $ 32,032  
    Accounts receivable, net of allowance for doubtful accounts of $188 and $159 as of
    December 31, 2024 and 2023, respectively    		   8,061       7,135  
    Prepaid expenses and other current assets   1,627       1,113  
    Total current assets   46,192       40,280  
    Property and equipment, net   545       592  
    Intangible assets, net   35,997       34,403  
    Goodwill   5,227       5,227  
    Right-of-use assets   1,901       2,457  
    Deferred tax assets   7,496       9,514  
    Other noncurrent assets   1,173       517  
    Total assets $ 98,531     $ 92,990  
    LIABILITIES AND SHAREHOLDERS’ EQUITY:              
    Current liabilities:              
    Accounts payable $ 2,127     $ 1,631  
    Accrued expenses and other current liabilities   2,881       1,989  
    Current portion of operating lease liabilities   406       569  
    Deferred revenue   712       690  
    Dividend payable   4,181       –  
    Total current liabilities   10,307       4,879  
    Noncurrent operating lease liabilities   1,592       1,999  
    Total liabilities   11,899       6,878  
    Shareholders’ equity:              
    Preferred stock—$0.001 par value, 10,000,000 shares authorized, and 0 shares
    issued and outstanding, as of December 31, 2024 and 2023    		   –       –  
    Common stock—$0.001 par value, 200,000,000 shares authorized, 13,936,329 and
    13,980,274 shares issued, and 13,936,329 and 13,970,846 shares outstanding, as of
    December 31, 2024 and 2023    		   14       14  
    Treasury stock, at cost, 0 and 9,428 shares as of December 31, 2024 and 2023   –       (188 )
    Additional paid-in capital   87,488       94,159  
    Accumulated deficit   (870 )     (7,873 )
    Total shareholders’ equity   86,632       86,112  
    Total liabilities and shareholders’ equity $ 98,531     $ 92,990  
                   
    RED VIOLET, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Amounts in thousands, except share data)
           
        Year Ended December 31,  
        2024     2023  
    Revenue   $ 75,189     $ 60,204  
    Costs and expenses(1):                
    Cost of revenue (exclusive of depreciation and amortization)     13,997       13,069  
    Sales and marketing expenses     17,835       13,833  
    General and administrative expenses     25,875       22,446  
    Depreciation and amortization     9,562       8,352  
    Total costs and expenses     67,269       57,700  
    Income from operations     7,920       2,504  
    Interest income     1,400       1,334  
    Income before income taxes     9,320       3,838  
    Income tax expense (benefit)     2,317       (9,691 )
    Net income   $ 7,003     $ 13,529  
    Earnings per share:                
    Basic   $ 0.51     $ 0.97  
    Diluted   $ 0.50     $ 0.96  
    Weighted average shares outstanding:                
    Basic     13,864,797       13,974,125  
    Diluted     14,125,825       14,134,021  
                     
                     
    (1) Share-based compensation expense in each category:                
    Sales and marketing expenses   $ 606     $ 462  
    General and administrative expenses     5,342       4,924  
    Total   $ 5,948     $ 5,386  
                     
    RED VIOLET, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Amounts in thousands)
         
      Year Ended December 31,  
      2024     2023  
    CASH FLOWS FROM OPERATING ACTIVITIES:              
    Net income $ 7,003     $ 13,529  
    Adjustments to reconcile net income to net cash provided by operating activities:              
    Depreciation and amortization   9,562       8,352  
    Share-based compensation expense   5,948       5,386  
    Write-off of long-lived assets   85       6  
    Provision for bad debts   342       1,088  
    Noncash lease expenses   556       576  
    Deferred income tax expense (benefit)   2,018       (9,801 )
    Changes in assets and liabilities:              
    Accounts receivable   (1,268 )     (2,688 )
    Prepaid expenses and other current assets   (514 )     (342 )
    Other noncurrent assets   (656 )     84  
    Accounts payable   496       (598 )
    Accrued expenses and other current liabilities   936       100  
    Deferred revenue   22       20  
    Operating lease liabilities   (570 )     (641 )
    Net cash provided by operating activities   23,960       15,071  
    CASH FLOWS FROM INVESTING ACTIVITIES:              
    Purchase of property and equipment   (169 )     (122 )
    Capitalized costs included in intangible assets   (9,398 )     (9,024 )
    Net cash used in investing activities   (9,567 )     (9,146 )
    CASH FLOWS FROM FINANCING ACTIVITIES:              
    Taxes paid related to net share settlement of vesting of restricted stock units   (4,068 )     (1,992 )
    Repurchases of common stock   (5,853 )     (3,711 )
    Net cash used in financing activities   (9,921 )     (5,703 )
    Net increase in cash and cash equivalents $ 4,472     $ 222  
    Cash and cash equivalents at beginning of period   32,032       31,810  
    Cash and cash equivalents at end of period $ 36,504     $ 32,032  
    SUPPLEMENTAL DISCLOSURE INFORMATION:              
    Cash paid for interest $ –     $ –  
    Cash paid for income taxes $ 607     $ 82  
    Share-based compensation capitalized in intangible assets $ 1,627     $ 1,851  
    Retirement of treasury stock $ 10,065     $ 5,559  
    Right-of -use assets obtained in exchange of operating lease liabilities $ –     $ 1,919  
    Operating lease liabilities arising from obtaining right-of-use assets $ –     $ 1,919  
    Dividend declared not yet paid $ 4,181     $ –  
                   

    Use and Reconciliation of Non-GAAP Financial Measures

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

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

      Three Months Ended December 31,     Year Ended December 31,  
    (Dollars in thousands) 2024     2023     2024     2023  
    Net income (loss) $ 863     $ (1,070 )   $ 7,003     $ 13,529  
    Interest income   (368 )     (387 )     (1,400 )     (1,334 )
    Income tax (benefit) expense   (124 )     562       2,317       (9,691 )
    Depreciation and amortization   2,481       2,211       9,562       8,352  
    Share-based compensation expense   1,496       1,328       5,948       5,386  
    Litigation costs   117       –       124       49  
    Write-off of long-lived assets and others   3       19       92       77  
    Adjusted EBITDA $ 4,468     $ 2,663     $ 23,646     $ 16,368  
    Revenue $ 19,565     $ 15,061     $ 75,189     $ 60,204  
                                   
    Net income (loss) margin   4 %     (7 %)     9 %     22 %
    Adjusted EBITDA margin   23 %     18 %     31 %     27 %
                                   

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

      Three Months Ended December 31,     Year Ended December 31,  
    (Dollars in thousands, except share data) 2024     2023     2024     2023  
    Net income (loss) $ 863     $ (1,070 )   $ 7,003     $ 13,529  
    Share-based compensation expense   1,496       1,328       5,948       5,386  
    Amortization of share-based compensation
    capitalized in intangible assets    		   299       263       1,152       969  
    Discrete tax items(1)   –       –       –       (10,272 )
    Tax effect of adjustments(2)   (1,336 )     (251 )     (2,587 )     (1,526 )
    Adjusted net income $ 1,322     $ 270     $ 11,516     $ 8,086  
    Earnings per share:                              
    Basic $ 0.06     $ (0.08 )   $ 0.51     $ 0.97  
    Diluted $ 0.06     $ (0.08 )   $ 0.50     $ 0.96  
    Adjusted earnings per share:                              
    Basic $ 0.10     $ 0.02     $ 0.83     $ 0.58  
    Diluted $ 0.09     $ 0.02     $ 0.82     $ 0.57  
    Weighted average shares outstanding:                              
    Basic   13,900,091       13,985,426       13,864,797       13,974,125  
    Diluted(3)   14,366,545       14,307,797       14,125,825       14,134,021  
    (1) During the three months ended September 30, 2023, a one-time income tax benefit of $10.3 million was recognized as a result of the release of the valuation allowance previously recorded on our deferred tax asset and cumulative research and development tax credit, which were excluded to calculate the adjusted net income.
       
    (2) The tax effect of adjustments is calculated using the expected federal and state statutory tax rate. The expected federal and state income tax rate was approximately 26.00% for the three and twelve months ended December 31, 2024, and 25.75% for the three and twelve months ended December 31, 2023.
       
    (3) For the three months ended December 31, 2023, diluted weighted average shares outstanding for adjusted diluted earnings per share are calculated by the inclusion of unvested RSUs, which were not included in US GAAP diluted weighted average shares outstanding due to the Company’s net loss position for such period.
       

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

      Three Months Ended December 31,     Year Ended December 31,  
    (Dollars in thousands) 2024     2023     2024     2023  
    Revenue $ 19,565     $ 15,061     $ 75,189     $ 60,204  
    Cost of revenue (exclusive of depreciation and amortization)   (3,472 )     (3,337 )     (13,997 )     (13,069 )
    Depreciation and amortization of intangible assets   (2,431 )     (2,154 )     (9,349 )     (8,119 )
    Gross profit   13,662       9,570       51,843       39,016  
    Depreciation and amortization of intangible assets   2,431       2,154       9,349       8,119  
    Adjusted gross profit $ 16,093     $ 11,724     $ 61,192     $ 47,135  
                                   
    Gross margin   70 %     64 %     69 %     65 %
    Adjusted gross margin   82 %     78 %     81 %     78 %
                                   

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

      Three Months Ended December 31,     Year Ended December 31,  
    (Dollars in thousands) 2024     2023     2024     2023  
    Net cash provided by operating activities $ 6,691     $ 4,204     $ 23,960     $ 15,071  
    Less:                              
    Purchase of property and equipment   (17 )     (24 )     (169 )     (122 )
    Capitalized costs included in intangible assets   (2,280 )     (2,103 )     (9,398 )     (9,024 )
    Free cash flow $ 4,394     $ 2,077     $ 14,393     $ 5,925  
                                   

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

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

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

    SUPPLEMENTAL METRICS

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

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

         
      (Unaudited)  
    (Dollars in thousands) Q1’23     Q2’23     Q3’23     Q4’23     Q1’24     Q2’24     Q3’24     Q4’24  
    Customer metrics                                                              
    IDI – billable customers(1)   7,256       7,497       7,769       7,875       8,241       8,477       8,743       8,926  
    FOREWARN – users(2)   131,348       146,537       168,356       185,380       236,639       263,876       284,967       303,418  
    Revenue metrics                                                              
    Contractual revenue %(3)   75 %     79 %     79 %     82 %     78 %     74 %     77 %     77 %
    Gross revenue retention %(4)   94 %     94 %     94 %     92 %     93 %     94 %     94 %     96 %
    Other metrics                                                              
    Employees – sales and marketing 61     63     65     71     76     86     93     95  
    Employees – support 10     9     9     9     10     10     11     11  
    Employees – infrastructure 27     26     27     27     29     27     29     28  
    Employees – engineering 47     47     47     51     51     56     58     57  
    Employees – administration 25     25     25     25     25     25     26     25  
    (1) We define a billable customer of IDI as a single entity that generated revenue in the last three months of the period. Billable customers are typically corporate organizations. In most cases, corporate organizations will have multiple users and/or departments purchasing our solutions, however, we count the entire organization as a discrete customer.
       
    (2) We define a user of FOREWARN as a unique person that has a subscription to use the FOREWARN service as of the last day of the period. A unique person can only have one user account.
       
    (3) Contractual revenue % represents revenue generated from customers pursuant to pricing contracts containing a monthly fee and any additional overage divided by total revenue. Pricing contracts are generally annual contracts or longer, with auto renewal.
       
    (4) Gross revenue retention is defined as the revenue retained from existing customers, net of reinstated revenue, and excluding expansion revenue. Revenue is measured once a customer has generated revenue for six consecutive months. Revenue is considered lost when all revenue from a customer ceases for three consecutive months; revenue generated by a customer after the three-month loss period is defined as reinstated revenue. Gross revenue retention percentage is calculated on a trailing twelve-month basis. The numerator of which is revenue lost during the period due to attrition, net of reinstated revenue, and the denominator of which is total revenue based on an average of total revenue at the beginning of each month during the period, with the quotient subtracted from one. Our gross revenue retention calculation excludes revenue from idiVERIFIED, which is purely transactional and currently represents less than 3% of total revenue.
       

    The MIL Network –

  • MIL-OSI: Epsilon Energy Ltd. Announces the Following Headlines

    Source: GlobeNewswire (MIL-OSI)

    • Board declares dividend of $0.0625 per common share
    • Company announces the timing of its 2024 year end earnings release and conference call

    HOUSTON, Feb. 27, 2025 (GLOBE NEWSWIRE) — Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today announced that its Board of Directors has declared a dividend of $0.0625 per share of common stock (annualized $0.25/sh) to the stock holders of record at the close of business on March 13, 2025, payable on March 31, 2025. All dividends paid by the Company are “eligible dividends” as defined in subsection 89(1) of the Income Tax Act (Canada), unless indicated otherwise.

    The Company also announced that it will issue its year end 2024 earnings release on Wednesday, March 19, 2025 after the market close and host a conference call to discuss its financial and operating results on Thursday, March 20, 2025 at 10:30 a.m. Central Time (11:30 a.m. Eastern Time).

    Interested parties in the United States and Canada may participate toll-free by dialing (833) 816-1385. International parties may participate by dialing (412) 317-0478. Participants should ask to be joined to the “Epsilon Energy 2024 Year End Earnings Conference Call.”

    A webcast can be viewed at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=lEJXH1I5. A webcast replay will be available on the Company’s website (www.epsilonenergyltd.com) following the call.

    About Epsilon

    Epsilon Energy Ltd. is a North American onshore natural gas and oil production and gathering company with assets in Pennsylvania, Texas, New Mexico, Oklahoma, and Alberta, Canada.

    Contact Information:

    281-670-0002

    Jason Stabell
    Chief Executive Officer
    Jason.Stabell@EpsilonEnergyLTD.com

    Andrew Williamson
    Chief Financial Officer
    Andrew.Williamson@EpsilonEnergyLTD.com

    The MIL Network –

  • MIL-OSI: Nutanix to Present at Upcoming Investor Conference

    Source: GlobeNewswire (MIL-OSI)

    SAN JOSE, Calif., Feb. 27, 2025 (GLOBE NEWSWIRE) — Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced that its management will present at the following upcoming financial community event:

    • Morgan Stanley Technology, Media & Telecom Conference
      Thursday, March 6, 2025
      8:30 a.m. PST; 11:30 a.m. EST

    A live webcast and replay of the presentation will be accessible on the Nutanix Investor Relations website at ir.nutanix.com

    About Nutanix
    Nutanix is a global leader in cloud software, offering organizations a single platform for running applications and managing data, anywhere. With Nutanix, companies can reduce complexity and simplify operations, freeing them to focus on their business outcomes. Building on its legacy as the pioneer of hyperconverged infrastructure, Nutanix is trusted by companies worldwide to power hybrid multicloud environments consistently, simply, and cost-effectively. Learn more at www.nutanix.com or follow us on social media @nutanix.

    © 2025 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or unregistered trademarks of Nutanix, Inc. in the United States and other countries. Other brand names and marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).

    Investor Contact
    Richard Valera
    ir@nutanix.com

    The MIL Network –

  • MIL-OSI: PubMatic Announces Fourth Quarter and Fiscal Year Ended 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    FY Revenue of $291.3 million, up 9% over 2023;

    Delivered FY 2024 net income of $12.5 million or 4% margin;

    FY adjusted EBITDA increased 23% over 2023 and was $92.3 million or 32% margin;

    Revenue in Q4 from CTV more than doubled year over year and represented 20% of total revenue;

    Supply Path Optimization represented 53% of total activity in 2024;

    Repurchased 4.3 million shares in 2024, representing 7.9% of fully diluted shares as of December 31, 2024

    NO-HEADQUARTERS/REDWOOD CITY, Calif., Feb. 27, 2025 (GLOBE NEWSWIRE) — PubMatic, Inc. (Nasdaq: PUBM), an independent technology company delivering digital advertising’s supply chain of the future, today reported financial results for the fourth quarter and fiscal year ended December 31, 2024.

    “Revenue growth in the year more than doubled over 2023, driven by strength in CTV, emerging revenue streams, and marquee customers choosing PubMatic to build and scale their ad businesses. Our revenue mix is evolving; in the fourth quarter, CTV more than doubled to 20% of total revenue. These achievements mark an inflection point in our underlying business that highlights critical scale on our platform and a significant shift in ad buying toward channels with the highest consumer engagement such as CTV, mobile app and commerce media,” said Rajeev Goel, co-founder and CEO at PubMatic. “Today, our omnichannel platform serves publishers, media buyers, commerce media networks, and curation/data providers, all of which are turning to sell side technology for critical end-to-end solutions needed to build their ad businesses. As we look to 2025, we expect accelerated growth in our underlying business as ad buyers seek premium, brand safe, curated inventory in the open internet.”

    Fiscal Year 2024 Financial Highlights

    • Revenue for the full year 2024 was $291.3 million, an increase of 9% over $267.0 million in 2023;
    • Gross profit was $190.2 million, or 65% margin, an improvement of 250 basis points over 2023;
    • Revenue from omnichannel video in 2024 grew 37% over the same period last year;
    • Net dollar-based retention1 was 107% for the year ended December 31, 2024;
    • GAAP net income was $12.5 million with a margin of 4%, or $0.23 per diluted share in 2024, an increase over net income2 of $8.9 million with a margin of 3%, or $0.16 per diluted share in 2023;
    • Adjusted EBITDA was $92.3 million, or 32% margin, an increase over adjusted EBITDA of $75.3 million, or 28% margin, in 2023;
    • Non-GAAP net income was $42.5 million, or $0.78 per non-GAAP diluted share in 2024, an increase over non-GAAP net income of $32.0 million, or $0.57 per non-GAAP diluted share in 2023;
    • Net cash provided by operating activities in 2024 was $73.4 million, compared to $81.1 million in the full year 2023;
    • Generated free cash flow of $34.9 million in 2024, down 34% over 2023;
    • Ended 2024 with total cash, cash equivalents, and marketable securities of $140.6 million with no debt, a decrease of 20% over the full year 2023; and
    • Through December 31, 2024, used $134.6 million in cash to repurchase 8.3 million shares of Class A common stock with $40.4 million available from the 2024 repurchase program.

    Fourth Quarter 2024 Financial Highlights

    • Revenue in the fourth quarter of 2024 was $85.5 million, an increase of 1% over $84.6 million in the same period of 2023;
    • GAAP net income was $13.9 million with a margin of 16%, or $0.26 per diluted share in the fourth quarter, compared to GAAP net income of $18.7 million with a margin of 22%, or $0.34 per diluted share in the same period of 2023;
    • Adjusted EBITDA was $37.6 million, or 44% margin, compared to $38.9 million, or 46% margin in the same period of 2023;
    • Non-GAAP net income was $21.4 million, or $0.41 per non-GAAP diluted share in the fourth quarter, compared to non-GAAP net income of $24.4 million, or $0.45 per non-GAAP diluted share in the same period of 2023; and
    • Net cash provided by operating activities was $18.0 million, compared to $28.7 million in the same period of 2023.

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

    “In 2024, we delivered record share of revenue for CTV, mobile app and emerging revenues, and achieved an all-time high of Supply Path Optimization activity. We also significantly expanded our margins, once again, demonstrating the strength of our durable model and our strategic commitment to steward both operational excellence and targeted investments for growth,” said Steve Pantelick, CFO at PubMatic. “In Q4, strong growth in the underlying business helped offset softer spending from the large DSP buyer we previously called out mid year. Going forward, we are taking a conservative approach as it relates to this buyer, and expect total revenues to grow year over year in the second half of the year once we lap this impact at the end of Q2 2025. Our underlying business, which excludes revenue from this DSP and political, is targeted to grow 15%+ and represent over two thirds of total company revenues in 2025.”

    Business Highlights

    Omnichannel platform drives revenue in key secular growth areas

    • Full year revenue from high value formats and channels, mobile and omnichannel video3, grew 17% over 2023.
    • In Q4, revenue from omnichannel video, which includes CTV, grew 37% year-over-year.
    • CTV reached scale, and was 20% of revenue in the fourth quarter, driven by growing inventory supply, SPO relationships, and strength in political advertising.
    • Revenue from mobile app grew 16% over 2023 as we scaled to over 900 mobile app publishers.

    High consumer engagement channels fuel ad demand and sell-side data curation

    • New and expanded partnerships announced in 2024 with premium streaming brands including Roku, Dish Media, Disney+ Hotstar, TCL and Xumo. We now work with 80% of the top 30 streaming publishers.
    • The number of Activate customers grew nearly 6x over 2023.
    • Supply Path Optimization represented 53% of total activity on our platform in 2024, up from 45% in 2023.
    • Connect drives more performant, targeted ad campaigns across the open internet, offering 190 data sets to ad buyers on PubMatic. Connect is a leading platform for data providers and curators to integrate first-party data, package inventory, sell to, and optimize outcomes for ad buyers.

    Focused investments drive long-term growth opportunities

    • More than doubled total addressable market to over $120 billion via products that address four key stakeholders across the digital advertising ecosystem: publishers, media buyers, curators and data providers, and commerce media networks.
    • Contribution from emerging revenue streams, which expand beyond ad monetization services, doubled from 2023.

    Recent product launches

    • Launched CTV Marketplaces, offering ad buyers pre-curated CTV inventory available only on PubMatic, built directly from our sell side technology. CTV Marketplaces allows publishers to unlock more value from their inventory and provides ad buyers off-the-shelf, easy to buy premium content and targeted audiences, including curated live sports inventory.
    • Launched Creative Category Manager, a generative AI solution that scans and classifies each video ad creative on granular criteria. First used to unlock millions of dollars in political ad spend, it drove significant CTV revenue. This gen AI solution will soon expand to other use cases and verticals.
    • Launched PubMatic Assistant, a gen AI powered reporting tool that allows publishers to request any report or data using simple plain language text queries. As a result, publishers can streamline analytics, enhance productivity and unlock new growth opportunities by uncovering insights in big data. This powerful tool removes barriers to adoption and drives increased platform usage.

    2024 operating priorities drove profitable growth

    • Aligned with our growth investments, increased global headcount in 2024 by 11% over 2023, adding new team members across product management, engineering and go-to-market teams to accelerate long-term revenue growth.
    • Infrastructure optimization initiatives and investments drove nearly 263 trillion impressions processed in 2024, an increase of 25% over 2023.
    • Cost of revenue per million impressions processed decreased 18% on a trailing twelve month period, as compared to the prior period.
    • Scaled adoption of generative AI drove increased engineering productivity by 15%+ which led to faster software development, testing and release processes.

    Financial Outlook

    Q1 outlook includes the continued headwind from one of our top DSP buyers that revised its auction approach in late May 2024. Adjusted EBITDA expectation assumes a negative FX impact predominately from Euro and Pound Sterling expenses. It also assumes that general market conditions do not significantly deteriorate as it relates to current macroeconomic and geopolitical conditions.

    Accordingly, we estimate the following:

    For the first quarter of 2025, we expect the following:

    • Revenue to be in the range of $61 million to $63 million.
    • Adjusted EBITDA to be in the range of $5 million to $7 million.

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

    Conference Call and Webcast details

    PubMatic will host a conference call to discuss its financial results on Thursday, February 27, 2025 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). A live webcast of the call can be accessed from PubMatic’s Investor Relations website at https://investors.pubmatic.com. An archived version of the webcast will be available from the same website after the call.

    Non-GAAP Financial Measures

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

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

    • Adjusted EBITDA and non-GAAP net income are widely used by investors and securities analysts to measure a company’s operating performance without regard to items such as stock-based compensation expense, depreciation and amortization, interest expense, and provision for income taxes that can vary substantially from company to company depending upon their financing, capital structures and the method by which assets were acquired; and,
    • Our management uses adjusted EBITDA and non-GAAP net income in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of operating performance and the effectiveness of our business strategies and in communications with our board of directors concerning our financial performance; and adjusted EBITDA provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.

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

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

    Because of these and other limitations, you should consider adjusted EBITDA and non-GAAP net income along with other GAAP-based financial performance measures, including net income and our GAAP financial results.

    Forward Looking Statements

    This press release contains “forward-looking statements” regarding our future business expectations, including our guidance relating to our revenue and adjusted EBITDA for the first quarter of 2025, our expectations regarding our adjusted EBITDA, free cash flow, capital expenditures, future hiring, future market growth, our long-term revenue growth, target revenue and our ability to gain market share. These forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions and may differ materially from actual results due to a variety of factors including: our dependency on the overall demand for advertising and the channels we rely on; our existing customers not expanding their usage of our platform, or our failure to attract new publishers and buyers; our ability to maintain and expand access to spend from buyers and valuable ad impressions from publishers; the rejection of the use of digital advertising by consumers through opt-in, opt-out or ad-blocking technologies or other means; our failure to innovate and develop new solutions that are adopted by publishers; the war between Ukraine and Russia and the resumption of conflict between Israel and Palestine, and the related measures taken in response by the global community; the impacts of inflation as well as fiscal tightening and volatile interest rates; public health crises, including the resulting global economic uncertainty; limitations imposed on our collection, use or disclosure of data about advertisements; the lack of similar or better alternatives to the use of third-party cookies, mobile device IDs or other tracking technologies if such uses are restricted; any failure to scale our platform infrastructure to support anticipated growth and transaction volume; liabilities or fines due to publishers, buyers, and data providers not obtaining consents from consumers for us to process their personal data; any failure to comply with laws and regulations related to data privacy, data protection, information security, and consumer protection; and our ability to manage our growth. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. For more information about risks and uncertainties associated with our business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of our SEC filings, including but not limited to, our annual report on Form 10-K and quarterly reports on From 10-Q, copies of are available on our investor relations website at https://investors.pubmatic.com and on the SEC website at www.sec.gov. All information in this press release is as of February 27, 2025. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

    About PubMatic

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

     
     
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (unaudited)
     
        December 31,
    2024    		   December 31,
    2023
    ASSETS        
    Current assets        
    Cash and cash equivalents   $ 100,452     $ 78,509  
    Marketable securities     40,135       96,835  
    Accounts receivable, net     424,814       375,468  
    Prepaid expenses and other current assets     10,145       11,143  
    Total current assets     575,546       561,955  
    Property, equipment and software, net     58,522       60,729  
    Operating lease right-of-use assets     44,402       21,102  
    Acquisition-related intangible assets, net     4,284       5,864  
    Goodwill     29,577       29,577  
    Deferred tax assets     24,864       13,880  
    Other assets, non-current     2,324       2,136  
    TOTAL ASSETS   $ 739,519     $ 695,243  
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    Current liabilities        
    Accounts payable   $ 386,602     $ 347,673  
    Accrued liabilities     26,365       25,684  
    Operating lease liabilities, current     5,843       6,236  
    Total current liabilities     418,810       379,593  
    Operating lease liabilities, non-current     39,538       15,607  
    Other liabilities, non-current     3,908       3,844  
    TOTAL LIABILITIES     462,256       399,044  
    Stockholders’ Equity        
    Common stock     6       6  
    Treasury stock     (146,796 )     (71,103 )
    Additional paid-in capital     275,304       230,419  
    Accumulated other comprehensive loss     (636 )     (4 )
    Retained earnings     149,385       136,881  
    TOTAL STOCKHOLDERS’ EQUITY     277,263       296,199  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 739,519     $ 695,243  
     
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
    (unaudited)
     
        Three Months Ended December 31,   Year Ended December 31,
          2024     2023     2024     2023
    Revenue   $ 85,502   $ 84,600   $ 291,256   $ 267,014
    Cost of revenue(1)     24,935     24,208     101,027     99,229
    Gross profit     60,567     60,392     190,229     167,785
    Operating expenses:(1)                
    Technology and development     7,831     6,846     33,263     26,727
    Sales and marketing     23,763     20,353     95,369     82,803
    General and administrative(2)     14,171     12,780     57,670     56,219
    Total operating expenses     45,765     39,979     186,302     165,749
    Operating income     14,802     20,413     3,927     2,036
    Total other income, net     3,618     2,632     13,847     8,469
    Income before income taxes     18,420     23,045     17,774     10,505
    Provision for income taxes     4,521     4,343     5,270     1,624
    Net income   $ 13,899   $ 18,702   $ 12,504   $ 8,881
    Net income per share attributable to common stockholders:                
    Basic   $ 0.29   $ 0.37   $ 0.25   $ 0.17
    Diluted   $ 0.26   $ 0.34   $ 0.23   $ 0.16
    Weighted-average shares used to compute net income per share attributable to common stockholders:                
    Basic     47,993     50,659     49,213     51,760
    Diluted     52,623     54,940     54,294     56,027
     
    (1)Stock-based compensation expense includes the following:
    STOCK BASED COMPENSATION EXPENSE
    (In thousands)
    (unaudited)
     
        Three Months Ended December 31,   Year Ended December 31,
          2024     2023     2024     2023
    Cost of revenue   $         438   $         383   $         1,855   $         1,472        
    Technology and development             1,625             1,137             6,313             4,346        
    Sales and marketing             3,247             2,589             13,407             10,462        
    General and administrative             4,099             3,228             16,101             12,582        
    Total stock-based compensation   $         9,409   $         7,337   $         37,676   $         28,862        
     

    (2)On June 30, 2023, a Demand Side Platform buyer of our platform filed for Chapter 11 bankruptcy. As a result of this bankruptcy, we recorded incremental bad debt expense of $5.7 million which is reflected in our GAAP net income and adjusted EBITDA results for the year ended December 31, 2023.

     
    CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
    (In thousands)
    (unaudited)
     
        December 31,
          2024       2023  
    CASH FLOW FROM OPERATING ACTIVITIES:        
    Net Income   $ 12,504     $ 8,881  
    Adjustments to reconcile net income to net cash provided by operating activities:        
    Depreciation and amortization     45,352       44,770  
    Stock-based compensation     37,676       28,862  
    Provision for doubtful accounts     —       5,675  
    Deferred income taxes     (10,984 )     (13,406 )
    Accretion of discount on marketable securities     (4,117 )     (4,093 )
    Non-cash lease expense     6,801       6,145  
    Other     (25 )     45  
    Changes in operating assets and liabilities:        
       Accounts receivable     (49,345 )     (75,716 )
       Prepaid expenses and other current assets     (5,826 )     3,918  
       Accounts payable     38,096       79,687  
       Accrued liabilities     9,627       3,035  
       Operating lease liabilities     (6,531 )     (5,789 )
       Other liabilities, non-current     197       (893 )
    Net cash provided by operating activities     73,425       81,121  
    CASH FLOWS FROM INVESTING ACTIVITIES:        
    Purchases of and deposits on property and equipment     (17,592 )     (10,601 )
    Capitalized software development costs     (20,936 )     (17,687 )
    Purchases of marketable securities     (142,016 )     (140,603 )
    Proceeds from sales of marketable securities     —       18,873  
    Proceeds from maturities of marketable securities     202,858       111,000  
    Net cash provided by (used in) investing activities     22,314       (39,018 )
    CASH FLOWS FROM FINANCING ACTIVITIES:        
    Payment of business combination indemnification claims holdback     (2,148 )     —  
    Proceeds from issuance of common stock for employee stock purchase plan     2,368       1,869  
    Proceeds from exercise of stock options     1,765       1,549  
    Principal payments on finance lease obligations     (131 )     (126 )
    Payments to acquire treasury stock     (75,332 )     (59,268 )
    Net cash used in financing activities     (73,478 )     (55,976 )
    NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     22,261       (13,873 )
    Effect of foreign currency on cash     (318 )     —  
    CASH AND CASH EQUIVALENTS – Beginning of year     78,509       92,382  
    CASH AND CASH EQUIVALENTS – End of year   $ 100,452     $ 78,509  
     
    RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDA AND NON-GAAP NET INCOME
    (In thousands, except per share amounts)
    (unaudited)
     
        Three Months Ended December 31,   Year Ended December 31,
          2024       2023       2024       2023  
    Reconciliation of net income:                
    Net income   $ 13,899     $ 18,702     $ 12,504     $ 8,881  
    Add back (deduct):                
    Stock-based compensation     9,409       7,337       37,676       28,862  
    Depreciation and amortization     11,421       11,039       45,352       44,770  
    Interest income     (1,604 )     (2,515 )     (8,477 )     (8,828 )
    Provision for income taxes     4,521       4,343       5,270       1,624  
    Adjusted EBITDA1   $ 37,646     $ 38,906     $ 92,325     $ 75,309  
                     
    Revenue   $ 85,502     $ 84,600     $ 291,256     $ 267,014  
    Adjusted EBITDA margin     44 %     46 %     32 %     28 %
        Three Months Ended December 31,   Year Ended December 31,
          2024       2023       2024       2023  
    Reconciliation of net income per share:                
    Net income   $ 13,899     $ 18,702     $ 12,504     $ 8,881  
    Add back (deduct):                
    Stock-based compensation     9,409       7,337       37,676       28,862  
    Adjustment for income taxes     (1,865 )     (1,590 )     (7,728 )     (5,695 )
    Non-GAAP net income1   $ 21,443     $ 24,449     $ 42,452     $ 32,048  
    GAAP diluted EPS   $ 0.26     $ 0.34     $ 0.23     $ 0.16  
    Non-GAAP diluted EPS   $ 0.41     $ 0.45     $ 0.78     $ 0.57  
    GAAP weighted average shares outstanding—diluted     52,623       54,940       54,294       56,027  
    Non-GAAP weighted average shares outstanding—diluted     52,623       54,940       54,294       56,027  
     
    SUPPLEMENTAL CASH FLOW INFORMATION
    COMPUTATION OF FREE CASH FLOW, A NON-GAAP MEASURE
    (In thousands)
    (unaudited)
     
        Three Months Ended December 31,   Year Ended December 31,
          2024       2023       2024       2023  
    Reconciliation of cash provided by operating activities:                
    Net cash provided by operating activities   $ 18,048     $ 28,674     $ 73,425     $ 81,121  
    Less: Purchases of property and equipment     (4,324 )     (5,177 )     (17,592 )     (10,601 )
    Less: Capitalized software development costs     (4,868 )     (3,962 )     (20,936 )     (17,687 )
    Free cash flow   $ 8,856     $ 19,535     $ 34,897     $ 52,833  
     

    1 Net income, Adjusted EBITDA, and Non-GAAP net income for the twelve months ended December 31, 2024 include other income of $4.0 million related to our efforts to build and test integrations with the Google Privacy Sandbox.

    1 Net dollar-based retention is calculated by starting with the revenue from publishers in the trailing twelve months ended December 31, 2023 (“Prior Period Revenue”). We then calculate the revenue from these same publishers in the trailing twelve months ended December 31, 2024 (“Current Period Revenue”). Current Period Revenue includes any upsells and is net of contraction or attrition, but excludes revenue from new publishers. Our net dollar-based retention rate equals the Current Period Revenue divided by Prior Period Revenue. Net dollar-based retention rate is an important indicator of publisher satisfaction and usage of our platform, as well as potential revenue for future periods.
    2 Fiscal year 2023 GAAP net income includes approximately $5.7 million of incremental bad debt expense related to the bankruptcy of a Demand Side Platform buyer of our platform.
    3 Omnichannel video spans across desktop, mobile and CTV devices.

    The MIL Network –

  • MIL-OSI: American Coastal Insurance Corporation Reports Financial Results for Its Fourth Quarter and Year Ended December 31, 2024

    Source: GlobeNewswire (MIL-OSI)

    Company to Host Quarterly Conference Call at 5:00 P.M. ET on February 27, 2025
    The information in this press release should be read in conjunction with an earnings presentation that is available on the Company’s website at investors.amcoastal.com/Presentations.

    ST. PETERSBURG, Fla., Feb. 27, 2025 (GLOBE NEWSWIRE) — American Coastal Insurance Corporation (Nasdaq: ACIC) (“ACIC” or the “Company”), a property and casualty insurance holding company, today reported its financial results for the fourth quarter and year ended December 31, 2024.

           
    ($ in thousands, except for per share data) Three Months Ended   Year Ended
    December 31,   December 31,
        2024       2023     Change     2024       2023     Change
    Gross premiums written $ 140,739     $ 128,260     9.7 %   $ 647,805     $ 635,709     1.9 %
    Gross premiums earned   162,710       159,094     2.3       638,608       604,683     5.6  
    Net premiums earned   73,492       49,141     49.6       273,990       262,060     4.6  
    Total revenue   79,267       51,251     54.7       296,657       264,400     12.2  
    Income from continuing operations, net of tax   5,868       17,380     (66.2 )     76,319       85,204     (10.4 )
    Income (loss) from discontinued operations, net of tax   (922 )     (3,096 )   70.2       (601 )     224,707     NM
    Consolidated net income $ 4,946     $ 14,284     (65.4 )%   $ 75,718     $ 309,911     NM
                           
    Net income available to ACIC stockholders per diluted share                      
    Continuing Operations $ 0.12     $ 0.38     (68.4 )%   $ 1.55     $ 1.92     (19.3 )%
    Discontinued Operations $ (0.02 )   $ (0.07 )   71.4       (0.01 )     5.06     NM
    Total $ 0.10     $ 0.31     (67.7 )%   $ 1.54     $ 6.98     NM
                           
    Reconciliation of net income to core income:                      
    Plus: Non-cash amortization of intangible assets and goodwill impairment $ 608     $ 811     (25.0 )%   $ 2,639     $ 3,247     (18.7 )%
    Less: Income (loss) from discontinued operations, net of tax   (922 )     (3,096 )   70.2       (601 )     224,707     NM
    Less: Net realized losses on investment portfolio   —       (2 )   NM     (124 )     (6,789 )   98.2  
    Less: Unrealized gains on equity securities   454       22     NM     1,996       814     NM
    Less: Net tax impact (1)   32       166     (80.7 )%     161       1,937     (91.7 )
    Core income(2)   5,990       18,005     (66.7 )     76,925       92,489     (16.8 )
    Core income per diluted share (2) $ 0.12     $ 0.39     (69.2 )%   $ 1.56     $ 2.08     (25.0 )%
                           
    Book value per share             $ 4.89     $ 3.61     35.5 %
    NM = Not Meaningful
    (1) In order to reconcile net income to the core income measures, the Company included the tax impact of all adjustments using the 21% federal corporate tax rate.
    (2) Core income and core income per diluted share, both of which are measures that are not based on generally accepted accounting principles (“GAAP”), are reconciled above to net income and net income per diluted share, respectively, the most directly comparable GAAP measures. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section, below.
       

    Comments from Chief Executive Officer, B. Bradford Martz:

    “American Coastal, our insurance subsidiary, remains a leader in the Florida commercial residential market. The Company remained profitable in the 2024 fourth quarter with a combined ratio of 91.9%, despite the devastating impact and full catastrophe retention from Hurricane Milton, leading to a 67.5% combined ratio for the full year. This underscores the strength of our reinsurance strategy in safeguarding our balance sheet while mitigating the financial impact of catastrophic events.

    Furthermore, American Coastal’s written premium increased 9.7% from the prior year fourth quarter and renewal retention remained steady. In December, we announced the launch of our apartment program, and, to date, we have received hundreds of high-quality submissions from our six broker partners, affirming the strong demand for American Coastal’s products.”

    Return on Equity and Core Return on Equity

    The calculations of the Company’s return on equity and core return on equity are shown below.

           
    ($ in thousands) Three Months Ended   Year Ended
    December 31,   December 31,
        2024       2023       2024       2023  
    Income from continuing operations, net of tax $ 5,868     $ 17,380     $ 76,319     $ 85,204  
    Return on equity based on GAAP income from continuing operations, net of tax (1)   10.4 %     98.6 %     33.7 %     120.8 %
                   
    Income (loss) from discontinued operations, net of tax $ (922 )   $ (3,096 )   $ (601 )   $ 224,707  
    Return on equity based on GAAP income (loss) from discontinued operations, net of tax (1)   (1.6 )%     (17.6 )%     (0.3 )%   NM
                   
    Consolidated net income $ 4,946     $ 14,284     $ 75,718     $ 309,911  
    Return on equity based on GAAP net income (1)   8.7 %     81.0 %     33.5 %   NM
                   
    Core income $ 5,990     $ 18,005     $ 76,925     $ 92,489  
    Core return on equity (1)(2)   10.6 %     102.1 %     34.0 %     131.1 %
    (1) Return on equity for the three months and years ended December 31, 2024 and 2023 is calculated on an annualized basis by dividing the net income or core income for the period by the average stockholders’ equity for the trailing twelve months.
    (2) Core return on equity, a measure that is not based on GAAP, is calculated based on core income, which is reconciled on the first page of this press release to net income, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section below.
       

    Combined Ratio and Underlying Ratio

    The calculations of the Company’s combined ratio and underlying combined ratio on a consolidated basis and attributable to Interboro Insurance Company (“IIC”), now captured within discontinued operations, are shown below.

           
    ($ in thousands) Three Months Ended   Year Ended
    December 31,   December 31,
      2024     2023     Change   2024     2023     Change
    Consolidated                      
    Loss ratio, net(1) 40.5 %   13.7 %   26.8 pts   25.3 %   17.8 %   7.5 pts
    Expense ratio, net(2) 51.4 %   46.2 %   5.2 pts   42.2 %   43.1 %   (0.9) pts
    Combined ratio (CR)(3) 91.9 %   59.9 %   32.0 pts   67.5 %   60.9 %   6.6 pts
    Effect of current year catastrophe losses on CR 27.8 %   (0.8 )%   28.6 pts   9.3 %   4.9 %   4.4 pts
    Effect of prior year favorable development on CR (1.8 )%   (3.0 )%   1.2 pts   (1.4 )%   (4.9 )%   3.5 pts
    Underlying combined ratio(4) 65.9 %   63.7 %   2.2 pts   59.6 %   60.9 %   (1.3) pts
                           
    IIC                      
    Loss ratio, net(1) 73.4 %   78.5 %   (5.1) pts   71.2 %   81.6 %   (10.4) pts
    Expense ratio, net(2) 47.1 %   39.0 %   8.1 pts   43.4 %   50.8 %   (7.4) pts
    Combined ratio (CR)(3) 120.5 %   117.5 %   3.0 pts   114.6 %   132.4 %   (17.8) pts
    Effect of current year catastrophe losses on CR 0.8 %   10.6 %   (9.8) pts   4.1 %   12.6 %   (8.5) pts
    Effect of prior year favorable development on CR (0.7 )%   13.2 %   (13.9) pts   (3.6 )%   2.0 %   (5.6) pts
    Underlying combined ratio(4) 120.4 %   93.7 %   26.7 pts   114.1 %   117.8 %   (3.7) pts
    (1) Loss ratio, net is calculated as losses and loss adjustment expenses (“LAE”), net of losses ceded to reinsurers, relative to net premiums earned.
    (2) Expense ratio, net is calculated as the sum of all operating expenses, less interest expense relative to net premiums earned.
    (3) Combined ratio is the sum of the loss ratio, net and expense ratio, net.
    (4) Underlying combined ratio, a measure that is not based on GAAP, is reconciled above to the combined ratio, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section below.
       

    Combined Ratio Analysis

    The calculations of the Company’s loss ratios and underlying loss ratios are shown below.

           
    ($ in thousands) Three Months Ended   Year Ended
    December 31,   December 31,
      2024       2023     Change     2024       2023     Change
    Loss and LAE $ 29,794     $ 6,710     $ 23,084   $ 69,319     $ 46,678     $ 22,641
    % of Gross earned premiums   18.3 %     4.2 %   14.1 pts     10.9 %     7.7 %   3.2 pts
    % of Net earned premiums   40.5 %     13.7 %   26.8 pts     25.3 %     17.8 %   7.5 pts
    Less:                      
    Current year catastrophe losses $ 20,405     $ (406 )   $ 20,811   $ 25,561     $ 12,783     $ 12,778
    Prior year reserve favorable development   (1,325 )     (1,482 )     157     (3,704 )     (12,694 )     8,990
    Underlying loss and LAE (1) $ 10,714     $ 8,598     $ 2,116   $ 47,462     $ 46,589     $ 873
    % of Gross earned premiums   6.6 %     5.4 %   1.2 pts     7.4 %     7.7 %   (0.3) pts
    % of Net earned premiums   14.5 %     17.5 %   (3.0) pts     17.3 %     17.8 %   (0.5) pts
    (1) Underlying loss and LAE is a non-GAAP financial measure and is reconciled above to loss and LAE, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section, below.
       

    The calculations of the Company’s expense ratios are shown below.

           
    ($ in thousands) Three Months Ended   Year Ended
    December 31,   December 31,
      2024       2023     Change     2024       2023     Change
    Policy acquisition costs $ 26,514     $ 13,138     $ 13,376   $ 70,990     $ 75,436     $ (4,446 )
    General and administrative   11,277       9,561       1,716     44,756       37,559       7,197  
    Total Operating Expenses $ 37,791     $ 22,699     $ 15,092   $ 115,746     $ 112,995     $ 2,751  
    % of Gross earned premiums   23.2 %     14.3 %   8.9 pts     18.1 %     18.7 %   (0.6) pts
    % of Net earned premiums   51.4 %     46.2 %   5.2 pts     42.2 %     43.1 %   (0.9) pts
                                           

    Quarterly Financial Results

    Net income for the fourth quarter of 2024 was $4.9 million, or $0.10 per diluted share, compared to $14.3 million, or $0.31 per diluted share, for the fourth quarter of 2023. Of this income, $5.9 million is attributable to continuing operations for the three months ended December 31, 2024, a decrease of $11.5 million from net income of $17.4 million for the same period in 2023. Quarter-over-quarter revenues increased, driven by a decrease in ceded premiums earned, and an increase in gross premiums earned and net investment income. This was offset by increased expenses quarter-over-quarter, driven by an increase in loss and LAE and policy acquisition costs, as described below. The Company’s loss from discontinued operations, also contributed to this change in net income, with the loss decreasing $2.2 million quarter-over-quarter, as the deconsolidation of the Company’s former subsidiary, United Property and Casualty Insurance Company (“UPC”), is not impacting the Company in 2024.

    The Company’s total gross written premium increased $12.5 million, or 9.7%, to $140.7 million for the fourth quarter of 2024, from $128.3 million for the fourth quarter of 2023. The breakdown of the quarter-over-quarter changes in both direct written and assumed premiums by state and gross written premium by line of business are shown in the table below.

               
    ($ in thousands) Three Months Ended December 31,        
        2024     2023   Change $   Change %
    Direct Written and Assumed Premium by State              
    Florida $ 135,661   $ 128,260   $ 7,401   5.8 %
    New York   —     —     —   —  
    Total direct written premium by state   135,661     128,260     7,401   5.8  
    Assumed premium   5,078     —     5,078   100.0  
    Total gross written premium by state $ 140,739   $ 128,260   $ 12,479   9.7 %
                   
    Gross Written Premium by Line of Business              
    Commercial property $ 140,739   $ 128,260   $ 12,479   9.7 %
    Personal property   —     —     —   —  
    Total gross written premium by line of business $ 140,739   $ 128,260   $ 12,479   9.7 %
                           

    Loss and LAE increased by $23.1 million, or 344.8%, to $29.8 million for the fourth quarter of 2024, from $6.7 million for the fourth quarter of 2023. Loss and LAE expense as a percentage of net earned premiums increased 26.8 points to 40.5% for the fourth quarter of 2024, compared to 13.7% for the fourth quarter of 2023. Excluding catastrophe losses and reserve development, the Company’s gross underlying loss and LAE ratio for the fourth quarter of 2024 would have been 6.6%, a 1.2 point increase from the fourth quarter of 2023.

    Policy acquisition costs increased by $13.4 million, or 102.3%, to $26.5 million for the fourth quarter of 2024, from $13.1 million for the fourth quarter of 2023, primarily due to a decrease in reinsurance commission income attributable to the change in our quota share reinsurance cession rate from 40% to 20% effective June 1, 2024. In addition, our management fees attributable to our commercial property premiums increased as the result of additional premiums written quarter-over-quarter.

    General and administrative expenses increased by $1.7 million, or 17.7%, to $11.3 million for the fourth quarter of 2024, from $9.6 million for the fourth quarter of 2023, driven by increased overhead costs, such as amortization of capitalized software, equipment costs and salaries, and external spend for audit, actuarial and legal services.

    IIC Quarterly Results Highlights

    Net loss attributable to IIC totaled $633 thousand for the fourth quarter of 2024 compared to a net loss of $274 thousand for the fourth quarter of 2023. Drivers of the quarter-over-quarter increase included: an increase in general and administrative expenses of $406 thousand as the result of increased costs such as software licensing costs and salary expenses, offset by increased revenues of $355 thousand, which were driven by an increase in gross earned premiums of $1.4 million, offset by increased ceded premiums earned of $1.0 million.

    Annual Financial Results

    Net income attributable to the Company for the year ended December 31, 2024 was $75.7 million, or $1.54 per diluted share, compared to net income of $309.9 million, or $6.98 per diluted share, for the year ended December 31, 2023. Drivers of net income during 2024 included increased gross premiums earned partially offset by increased ceded premiums earned. Net investment income also increased, driving additional total revenues year-over-year. This increase in revenue was offset by increased expenses year-over-year, driven by increases in losses and LAE incurred and general and administrative expenses, partially offset by decreased policy acquisition costs. During 2024, the Company experienced a net loss attributable to discontinued operations of $601 thousand, compared to $224.7 million of net income attributable to discontinued operations during 2023, as the deconsolidation of the Company’s former subsidiary, UPC, is not impacting the Company in 2024.

    The Company’s total gross written premium increased by $12.1 million, or 1.9%, to $647.8 million for the year ended December 31, 2024, from $635.7 million for the year ended December 31, 2023. The breakdown of the quarter-over-quarter changes in both direct written and assumed premiums by state and gross written premium by line of business are shown in the table below.

               
    ($ in thousands) Year Ended December 31,        
        2024     2023     Change $   Change %
    Direct Written and Assumed Premium by State (1)              
    Florida $ 642,727   $ 635,602     $ 7,125   1.1 %
    New York   —     —       —   —  
    Texas   —     (9 )     9   (100.0 )
    Total direct written premium by state   642,727     635,593       7,134   1.1  
    Assumed premium (2)   5,078     116       4,962   4,277.6  
    Total gross written premium by state $ 647,805   $ 635,709     $ 12,096   1.9 %
                   
    Gross Written Premium by Line of Business              
    Commercial property $ 647,805   $ 635,709     $ 12,096   1.9 %
    Personal property   —     —       —   —  
    Total gross written premium by line of business $ 647,805   $ 635,709     $ 12,096   1.9 %
    (1) The Company ceased writing in Texas as of May 31, 2022.
    (2) Assumed premium written for 2023 and 2024 primarily included commercial property business assumed from unaffiliated insurers.
       

    Loss and LAE increased by $22.6 million, or 48.4%, to $69.3 million for the year ended December 31, 2024, from $46.7 million for the year ended December 31, 2023. Loss and LAE expense as a percentage of net earned premiums increased 7.5 points to 25.3% for the year ended December 31, 2024, compared to 17.8% for the year ended December 31, 2023. Excluding catastrophe losses and reserve development, the Company’s gross underlying loss and LAE ratio for the year ended December 31, 2024, would have been 7.4%, a decrease of 0.3 points from 7.7% for the year ended December 31, 2023.

    Policy acquisition costs decreased by $4.4 million, or 5.9%, to $71.0 million for the year ended December 31, 2024, from $75.4 million for the year ended December 31, 2023, primarily due to an increase in ceding commission income as the result of the Company including quota share reinsurance coverage in their core catastrophe reinsurance programs beginning June 1, 2023. This resulted in ceding commission income for the full year ended December 31, 2024, compared to only seven months of the year ended December 31, 2023. This was partially offset by increased external management fees and premium taxes related to the Company’s increased commercial lines gross written premium.

    General and administrative expenses increased by $7.2 million, or 19.1%, to $44.8 million for the year ended December 31, 2024, from $37.6 million for the year ended December 31, 2023, driven by increased overhead costs, such as amortization of capitalized software and salaries, as well as external spend for audit, actuarial and legal services.

    IIC Annual Results Highlights

    Net loss attributable to IIC totaled $1.3 million for the year ended December 31, 2024, compared to a net loss of $3.0 million for the year ended December 31, 2023. Drivers of the year-over-year decreased loss included: an increase in net premiums earned of $6.5 million, driven by an increase in gross premiums earned of $5.1 million, while ceded premiums earned decreased $1.4 million. This was partially offset by increased expenses of $3.9 million, driven by an increase in loss and LAE incurred of $2.6 million, which was driven by current year non-catastrophe losses, and an increase in general and administrative expenses of $853 thousand as the result of increased costs, such as software licensing costs and salary expenses. IIC’s policy acquisition costs also increased $426 thousand, driven by the increase in premiums described above.

    Reinsurance Costs as a Percentage of Gross Earned Premium

    Reinsurance costs as a percentage of gross earned premium in the fourth quarter of 2024 and 2023 were as follows:

           
      2024   2023
    Non-at-Risk (0.3) %   (0.2) %
    Quota Share (16.2) %   (31.4) %
    All Other (38.3) %   (37.4) %
    Total Ceding Ratio (54.8) %   (69.0) %
           

    Ceded premiums earned related to the Company’s catastrophe excess of loss contracts remained relatively flat quarter-over-quarter. The Company’s utilization of quota share reinsurance coverage resulted in less excess of loss coverage needed for the 2023-2024 catastrophe year; however, the cost savings associated with this reduction in necessary coverage were offset by rate increases on catastrophe excess of loss coverage for the same period. This utilization of quota share reinsurance coverage increased the Company’s ceding ratio overall during 2023. Effective June 1, 2024, the Company decreased its quota share reinsurance coverage from 40% to 20%, lowering the Company’s quota share ceding ratio and overall ceding ratio.

    Reinsurance costs as a percentage of gross earned premium in the fourth quarter of 2024 and 2023 for IIC, captured within discontinued operations, were as follows:

       
      IIC
      2024   2023
    Non-at-Risk (2.4) %   (2.7) %
    Quota Share — %   — %
    All Other (28.4) %   (20.9) %
    Total Ceding Ratio (30.8) %   (23.6) %
           

    Investment Portfolio Highlights

    The Company’s cash, restricted cash and investment holdings increased from $311.9 million at December 31, 2023, to $540.8 million at December 31, 2024. This increase is driven by positive cash flows from operations. The Company’s cash and investment holdings consist of investments in U.S. government and agency securities, corporate debt and investment grade money market instruments. Fixed maturities represented approximately 82.3% of total investments at December 31, 2024, compared to 89.4% of total investments at December 31, 2023. The Company’s fixed maturity investments had a modified duration of 2.2 years at December 31, 2024, compared to 3.4 years at December 31, 2023.

    Book Value Analysis

    Book value per common share increased 35.5% from $3.61 at December 31, 2023, to $4.89 at December 31, 2024. Underlying book value per common share increased 31.2% from $3.97 at December 31, 2023, to $5.21 at December 31, 2024. An increase in the Company’s retained earnings as a result of net income for the year ended December 31, 2024, drove the increase in the Company’s book value per share. As shown in the table below, removing the effect of Accumulated Other Comprehensive Income (“AOCI”), caused by capital market conditions, increases the Company’s book value per common share at December 31, 2024.

           
    ($ in thousands, except for share and per share data) December 31, 2024    December 31, 2023
     
    Book Value per Share      
    Numerator:      
    Common stockholders’ equity $ 235,660     $ 168,765  
    Denominator:      
    Total Shares Outstanding   48,204,962       46,777,006  
    Book Value Per Common Share $ 4.89     $ 3.61  
           
    Book Value per Share, Excluding the Impact of AOCI      
    Numerator:      
    Common stockholders’ equity $ 235,660     $ 168,765  
    Less: Accumulated other comprehensive loss   (15,666 )     (17,137 )
    Stockholders’ Equity, excluding AOCI $ 251,326     $ 185,902  
    Denominator:      
    Total Shares Outstanding   48,204,962       46,777,006  
    Underlying Book Value Per Common Share(1) $ 5.21     $ 3.97  
    (1) Underlying book value per common share is a non-GAAP financial measure and is reconciled above to book value per common share, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section below.
       

    Conference Call Details

    About American Coastal Insurance Corporation

    American Coastal Insurance Corporation (amcoastal.com) is the holding company of the insurance carrier, American Coastal Insurance Company, which was founded in 2007 for the purpose of insuring Condominium and Homeowner Association properties, and apartments in the state of Florida. American Coastal Insurance Company has an exclusive partnership for distribution of Condominium Association properties in the state of Florida with AmRisc Group (amriscgroup.com), one of the largest Managing General Agents in the country specializing in hurricane-exposed properties. American Coastal Insurance Company has earned a Financial Stability Rating of “A”, “Exceptional” from Demotech, and maintains an “A-” insurance financial strength rating with a Stable outlook by Kroll. ACIC maintains a ‘BB+’ issuer rating with a Stable outlook by Kroll.

    Contact Information:
    Alexander Baty
    Vice President, Finance & Investor Relations, American Coastal Insurance Corp.
    investorrelations@amcoastal.com
    (727) 425-8076

    Karin Daly
    Investor Relations, Vice President, The Equity Group
    kdaly@equityny.com
    (212) 836-9623

    Definitions of Non-GAAP Measures

    The Company believes that investors’ understanding of ACIC’s performance is enhanced by the Company’s disclosure of the following non-GAAP measures. The Company’s methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

    Net income (loss) excluding the effects of amortization of intangible assets, income (loss) from discontinued operations, realized gains (losses) and unrealized gains (losses) on equity securities, net of tax (core income (loss)) is a non-GAAP measure that is computed by adding amortization, net of tax, to net income (loss) and subtracting income (loss) from discontinued operations, net of tax, realized gains (losses) on the Company’s investment portfolio, net of tax, and unrealized gains (losses) on the Company’s equity securities, net of tax, from net income (loss). Amortization expense is related to the amortization of intangible assets acquired, including goodwill, through mergers and, therefore, the expense does not arise through normal operations. Investment portfolio gains (losses) and unrealized equity security gains (losses) vary independent of the Company’s operations. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company’s performance. The most directly comparable GAAP measure is net income (loss). The core income (loss) measure should not be considered a substitute for net income (loss) and does not reflect the overall profitability of the Company’s business.

    Core return on equity is a non-GAAP ratio calculated using non-GAAP measures. It is calculated by dividing the core income (loss) for the period by the average stockholders’ equity for the trailing twelve months (or one quarter of such average, in the case of quarterly periods). Core income (loss) is an after-tax non-GAAP measure that is calculated by excluding from net income (loss) the effect of income (loss) from discontinued operations, net of tax, non-cash amortization of intangible assets, including goodwill, unrealized gains or losses on the Company’s equity security investments and net realized gains or losses on the Company’s investment portfolio. In the opinion of the Company’s management, core income (loss), core income (loss) per share and core return on equity are meaningful indicators to investors of the Company’s underwriting and operating results, since the excluded items are not necessarily indicative of operating trends. Internally, the Company’s management uses core income (loss), core income (loss) per share and core return on equity to evaluate performance against historical results and establish financial targets on a consolidated basis. The most directly comparable GAAP measure is return on equity. The core return on equity measure should not be considered a substitute for return on equity and does not reflect the overall profitability of the Company’s business.

    Combined ratio excluding the effects of current year catastrophe losses and prior year reserve development (underlying combined ratio) is a non-GAAP measure, that is computed by subtracting the effect of current year catastrophe losses and prior year development from the combined ratio. The Company believes that this ratio is useful to investors, and it is used by management to highlight the trends in the Company’s business that may be obscured by current year catastrophe losses and prior year development. Current year catastrophe losses cause the Company’s loss trends to vary significantly between periods as a result of their frequency of occurrence and severity and can have a significant impact on the combined ratio. Prior year development is caused by unexpected loss development on historical reserves. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company’s performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered as a substitute for the combined ratio and does not reflect the overall profitability of the Company’s business.

    Net loss and LAE excluding the effects of current year catastrophe losses and prior year reserve development (underlying loss and LAE) is a non-GAAP measure that is computed by subtracting the effect of current year catastrophe losses and prior year reserve development from net loss and LAE. The Company uses underlying loss and LAE figures to analyze the Company’s loss trends that may be impacted by current year catastrophe losses and prior year development on the Company’s reserves. As discussed previously, these two items can have a significant impact on the Company’s loss trends in a given period. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company’s performance. The most directly comparable GAAP measure is net loss and LAE. The underlying loss and LAE measure should not be considered a substitute for net loss and LAE and does not reflect the overall profitability of the Company’s business.

    Book value per common share, excluding the impact of accumulated other comprehensive loss (underlying book value per common share), is a non-GAAP measure that is computed by dividing common stockholders’ equity after excluding accumulated other comprehensive income (loss), by total common shares outstanding plus dilutive potential common shares outstanding. The Company uses the trend in book value per common share, excluding the impact of accumulated other comprehensive income (loss), in conjunction with book value per common share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes this non-GAAP measure is useful to investors because it eliminates the effect of interest rates that can fluctuate significantly from period to period and are generally driven by economic and financial factors that are not influenced by management. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of accumulated other comprehensive income (loss), should not be considered a substitute for book value per common share and does not reflect the recorded net worth of the Company’s business.

    Discontinued Operations

    On May 9, 2024, the Company entered into the Sale Agreement with Forza Insurance Holdings, LLC (“Forza”) in which ACIC will sell and Forza will acquire 100% of the issued and outstanding stock of the Company’s subsidiary, IIC. Forza’s application to acquire IIC was approved by the New York Department of Financial Services on February 13, 2025. The Company and Forza have agreed to close on April 1, 2025.

    In addition, on February 27, 2023, the Florida Department of Financial Services was appointed as receiver of the Company’s former subsidiary, UPC. As such, prior year financial results and Consolidated Balance Sheet components have been reclassified to reflect continuing and discontinued operations appropriately.

    Forward-Looking Statements

    Statements made in this press release, or on the conference call identified above, and otherwise, that are not historical facts are “forward-looking statements”. The Company believes these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions, or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those expressed in, or implied by, the forward-looking statements. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words such as “may,” “will,” “expect,” “endeavor,” “project,” “believe,” “plan,” “anticipate,” “intend,” “could,” “would,” “estimate” or “continue” or the negative variations thereof or comparable terminology. Factors that could cause actual results to differ materially may be found in the Company’s filings with the U.S. Securities and Exchange Commission, in the “Risk Factors” section in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements.

           
    Consolidated Statements of Comprehensive Income
    In thousands, except share and per share amounts
           
      Three Months Ended   Year Ended
      December 31,   December 31,
        2024       2023       2024       2023  
    REVENUE:              
    Gross premiums written $ 140,739     $ 128,260     $ 647,805     $ 635,709  
    Change in gross unearned premiums   21,971       30,834       (9,197 )     (31,026 )
    Gross premiums earned   162,710       159,094       638,608       604,683  
    Ceded premiums earned   (89,218 )     (109,953 )     (364,618 )     (342,623 )
    Net premiums earned   73,492       49,141       273,990       262,060  
    Net investment income   5,321       2,075       20,795       8,300  
    Net realized investment losses   —       (2 )     (124 )     (6,789 )
    Net unrealized gains on equity securities   454       22       1,996       814  
    Other revenue   —       15       —       15  
    Total revenues $ 79,267     $ 51,251     $ 296,657     $ 264,400  
    EXPENSES:              
    Losses and loss adjustment expenses   29,794       6,710       69,319       46,678  
    Policy acquisition costs   26,514       13,138       70,990       75,436  
    General and administrative expenses   11,277       9,561       44,756       37,559  
    Interest expense   2,784       2,719       11,996       10,875  
    Total expenses   70,369       32,128       197,061       170,548  
    Income before other income   8,898       19,123       99,596       93,852  
    Other income (loss)   (11 )     1,071       2,063       2,228  
    Income before income taxes   8,887       20,194       101,659       96,080  
    Provision for income taxes   3,019       2,814       25,340       10,876  
    Income from continuing operations, net of tax $ 5,868     $ 17,380     $ 76,319     $ 85,204  
    Income (loss) from discontinued operations, net of tax   (922 )     (3,096 )     (601 )     224,707  
    Net income $ 4,946     $ 14,284     $ 75,718     $ 309,911  
    OTHER COMPREHENSIVE INCOME:              
    Change in net unrealized gains (losses) on investments   (4,049 )     6,696       3,355       5,998  
    Reclassification adjustment for net realized investment losses   —       2       124       6,808  
    Income tax benefit related to items of other comprehensive income   —       —       —       —  
    Total comprehensive income $ 897     $ 20,982     $ 79,197     $ 322,717  
                   
    Weighted average shares outstanding              
    Basic   48,095,488       44,713,148       47,831,412       43,596,432  
    Diluted   49,589,458       45,712,715       49,362,985       44,388,804  
                   
    Earnings available to ACIC common stockholders per share              
    Basic              
    Continuing operations $ 0.12     $ 0.39     $ 1.60     $ 1.96  
    Discontinued operations   (0.02 )     (0.07 )     (0.01 )     5.15  
    Total $ 0.10     $ 0.32     $ 1.59     $ 7.11  
    Diluted              
    Continuing operations $ 0.12     $ 0.38     $ 1.55     $ 1.92  
    Discontinued operations   (0.02 )     (0.07 )     (0.01 )     5.06  
    Total $ 0.10     $ 0.31     $ 1.54     $ 6.98  
                   
    Dividends declared per share $ 0.50     $ —     $ 0.50     $ —  
                                   
                                   
           
    Consolidated Balance Sheets
    In thousands, except share amounts
           
      December 31, 2024   December 31, 2023
    ASSETS      
    Investments, at fair value:      
    Fixed maturities, available-for-sale $ 281,001     $ 138,387  
    Equity securities   36,794       —  
    Other investments   23,623       16,487  
    Total investments $ 341,418     $ 154,874  
    Cash and cash equivalents   137,036       138,930  
    Restricted cash   62,357       18,070  
    Accrued investment income   2,964       1,767  
    Property and equipment, net   5,736       3,658  
    Premiums receivable, net   46,564       45,924  
    Reinsurance recoverable on paid and unpaid losses   263,419       340,820  
    Ceded unearned premiums   160,893       155,301  
    Goodwill   59,476       59,476  
    Deferred policy acquisition costs   40,282       21,149  
    Intangible assets, net   5,908       8,548  
    Other assets   16,816       36,718  
    Assets held for sale   73,243       77,143  
    Total Assets $ 1,216,112     $ 1,062,378  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Liabilities:      
    Unpaid losses and loss adjustment expenses $ 322,087     $ 347,738  
    Unearned premiums   285,354       276,157  
    Reinsurance payable on premiums   83,130       —  
    Payments outstanding   699       706  
    Accounts payable and accrued expenses   86,140       74,783  
    Operating lease liability   3,323       739  
    Other liabilities   757       672  
    Notes payable, net   149,020       148,688  
    Liabilities held for sale   49,942       44,130  
    Total Liabilities $ 980,452     $ 893,613  
    Commitments and contingencies      
    Stockholders’ Equity:      
    Preferred stock, $0.0001 par value; 1,000,000 authorized; none issued or outstanding   —       —  
    Common stock, $0.0001 par value; 100,000,000 shares authorized; 48,417,045 and 46,989,089 issued, respectively; 48,204,962 and 46,777,006 outstanding, respectively   5       5  
    Additional paid-in capital   436,524       423,717  
    Treasury shares, at cost; 212,083 shares   (431 )     (431 )
    Accumulated other comprehensive loss   (15,666 )     (17,137 )
    Retained earnings (deficit)   (184,772 )     (237,389 )
    Total Stockholders’ Equity $ 235,660     $ 168,765  
    Total Liabilities and Stockholders’ Equity $ 1,216,112     $ 1,062,378  

    The MIL Network –

  • MIL-OSI: ARRAY Technologies, Inc. Reports Financial Results for the Fourth Quarter and Full Year 2024

    Source: GlobeNewswire (MIL-OSI)

    Fourth Quarter 2024 Financial Highlights

    • Revenue of $275.2 million
    • Gross Margin of 28.5%
    • Adjusted gross margin(1) of 29.8%
    • Net loss to common shareholders of $(141.2) million
      • Net loss to common shareholders inclusive of $74.0 million non-cash goodwill impairment charge and $91.9 million non-cash long-lived intangible asset write-down associated with the 2022 STI acquisition
    • Adjusted EBITDA(1) of $45.2 million
    • Net loss per basic and diluted share of $(0.93)
    • Adjusted net income per diluted share(1) of $0.16

    Full Year 2024 Financial Highlights

    • Revenue of $915.8 million
    • Gross Margin of 32.5%
    • Adjusted gross margin (1) of 34.1%
    • Net loss to common shareholders of $(296.1) million
      • Net loss to common shareholders inclusive of $236.0 million non-cash goodwill impairment charge and $91.9 million non-cash long-lived intangible asset write-down associated with the 2022 STI acquisition
    • Adjusted EBITDA(1) of $173.6 million
    • Net loss per basic and diluted share of $(1.95)
    • Adjusted net income per diluted share(1) of $0.60
    • Free cash flow(1) of $135.4 million
    • Total executed contracts and awarded orders at December 31, 2024 were $2.0 billion

    ALBUQUERQUE, N.M., Feb. 27, 2025 (GLOBE NEWSWIRE) — ARRAY Technologies (NASDAQ: ARRY) (“ARRAY” or the “Company”), a global leader in utility-scale solar tracking, today announced financial results for its fourth quarter and full year ended December 31, 2024.

    “ARRAY delivered strong fourth quarter and full year 2024 results, we exceeded the mid-point of our fourth quarter revenue guidance and achieved record gross margin on the full year. Our ongoing focus on operational execution continues to translate into robust profitability and healthy cash flow. We finished 2024 with an orderbook of $2 billion, representing 10% year-on-year growth. We are pleased with our results, which delivered significant progress in both market share and commercial growth. Thank you to our employees for their continued focus and hard work. Additionally, we are on track to deliver 100% domestic content solar trackers by the first half of 2025. Our OmniTrack™ product continues to gain traction in the market, and now accounts for over 20% of our orderbook. We are excited about our investment in Swap Robotics, a disruptive technology driving automation in PV installations. We believe the integration of Swap Robotics technology into our product portfolio will drive project efficiencies and cost savings for our customers,” said Chief Executive Officer, Kevin G. Hostetler.

    Mr. Hostetler continued, “While persistent headwinds, including permitting and interconnection delays, shortages of high-voltage circuit breakers and transformers, and labor constraints—continue to impact project timelines in the United States, we experienced the market stabilizing by year-end, in contrast to the delays experienced in the middle of the year. In Europe, we anticipate modest growth in 2025 as we are well positioned to capture additional market share. However, in Brazil, macro factors such as currency devaluation, volatile interest rates, and newly introduced tariffs on solar components have impacted growth. For 2025, at the midpoint of our guidance, ARRAY expects to deliver over 20% year-over-year revenue growth. We are optimistic about future demand growth for utility-scale solar energy both domestically and internationally and confident that our value proposition in the industry will continue to propel growth for years to come.”

    First Quarter and Full Year 2025 Guidance

    Given the uncertainty in the utility-scale solar energy market and headwinds we experienced during 2024 which pushed out project timelines, we are providing guidance for the first quarter of 2025. It is not our intention to provide quarterly guidance in the future. For the quarter ending March 31, 2025, the Company expects:

    • Revenue to be in the range of $260 million to $270 million
    • Adjusted EBITDA margin(2) to be in the range of 11% to 13%

    For the year ending December 31, 2025, the Company expects:

    • Revenue to be in the range of $1.05 billion to $1.15 billion
    • Adjusted EBITDA(2) to be in the range of $180 million to $200 million
    • Adjusted net income per share(2) to be in the range of $0.60 to $0.70

    Supplemental Presentation and Conference Call Information

    ARRAY has posted a supplemental presentation to its website, which will be discussed during the conference call hosted by management today (February 27, 2025) at 5:00 p.m. (ET). The conference call can be accessed live over the phone by dialing (877)-869-3847 (domestic) or (201)-689-8261 (international) and entering the passcode 13750627 or via webcast of the live conference call by logging onto the Investor Relations sections of the Company’s website at http://ir.arraytechinc.com. A telephonic replay will be available approximately three hours after the call by dialing (877)-660-6853 (domestic), or (201)-612-7415 (international) with the passcode 13750627. The replay will be available until 11:59 p.m. (ET) on March 13, 2025. The online replay will be available for 30 days on the same website immediately following the call.

    About ARRAY Technologies, Inc.

    ARRAY Technologies (NASDAQ: ARRY) is a leading global provider of solar tracking technology to utility-scale and distributed generation customers, who construct, develop, and operate solar PV sites. With solutions engineered to withstand the harshest weather conditions, ARRAY’s high-quality solar trackers, software platforms and field services combine to maximize energy production and deliver value to our customers for the entire lifecycle of a project. Founded and headquartered in the United States, ARRAY is rooted in manufacturing and driven by technology – relying on its domestic manufacturing, diversified global supply chain, and customer-centric approach to design, deliver, commission, train, and support solar energy deployment around the world. For more news and information on ARRAY, please visit arraytechinc.com.

    Investor Relations Contact:
    Keith Jennings
    505-437-0010
    investors@arraytechinc.com

    Media Contact:
    Nicole Stewart
    505-589-8257

    Forward-Looking Statements

    This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, technology or product developments, financing and investment plans, dividend policy, competitive position, industry and regulatory environment, potential growth opportunities and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “anticipates,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” “designed to” or similar expressions and the negatives of those terms.

    ARRAY’s actual results and the timing of events could materially differ from those anticipated in such forward-looking statements as a result of certain risks, uncertainties and other factors, including without limitation: changes in growth or rate of growth in demand for solar energy projects; competitive pressures within our industry; factors affecting viability and demand for solar energy, including but not limited to, the retail price of electricity, availability of in-demand components like high voltage breakers, various policies related to the permitting and interconnection costs of solar plants, and the availability of incentives for solar energy and solar energy production systems, which makes it difficult to predict our future prospects; competition from conventional and renewable energy sources; a loss of one or more of our significant customers, their inability to perform under their contracts, or their default in payment; a drop in the price of electricity derived from the utility grid or from alternative energy sources; fluctuations in our results of operations across fiscal periods, which could make our future performance difficult to predict and could cause our results of operations for a particular period to fall below expectations; any increase in interest rates, or a reduction in the availability of tax equity or project debt capital in the global financial markets, which could make it difficult for customers to finance the cost of a solar energy system; existing electric utility industry policies and regulations, and any subsequent changes or new related policies and regulations, may present technical, regulatory and economic barriers to the purchase and use of solar energy systems, which may significantly reduce demand for our products or harm our ability to compete; the interruption of the flow of materials from international vendors, which could disrupt our supply chain, including as a result of the imposition of new and/or additional duties, tariffs and other charges or restrictions on imports and exports; changes in the global trade environment, including the imposition of import tariffs or other import restrictions; geopolitical, macroeconomic and other market conditions unrelated to our operating performance including but not limited to a pandemic, the Ukraine-Russia war, attacks on shipping in the Red Sea, conflict in the Middle East, and inflation and interest rates; our ability to convert our orders in backlog into revenue; the reduction, elimination or expiration, or our failure to optimize the benefits of government incentives for, or regulations mandating the use of, renewable energy and solar energy, particularly in relation to our competitors; failure to, or incurrence of significant costs in order to, obtain, maintain, protect, defend or enforce, our intellectual property and other proprietary right; delays in construction projects and any failure to manage our inventory; significant changes in the cost of raw materials; disruptions to transportation and logistics, including increases in shipping costs; defects or performance problems in our products, which could result in loss of customers, reputational damage and decreased revenue; delays, disruptions or quality control problems in our product development operations; our ability to retain our key personnel or failure to attract additional qualified personnel; additional business, financial, regulatory and competitive risks due to our continued planned expansion into new markets; cybersecurity or other data incidents, including unauthorized disclosure of personal or sensitive data or theft of confidential information; a failure to maintain an effective system of integrated internal controls over financial reporting; our substantial indebtedness, risks related to actual or threatened public health epidemics, pandemics, outbreaks or crises; changes to laws and regulations, including changes to tax laws and regulations, that are applied adversely to us or our customers, including our ability to optimize those changes brought about by the passage of the Inflation Reduction Act or any repeal thereof; and the other risks and uncertainties described in more detail in the Company’s most recent Annual Report on Form 10-K and other documents on file with the SEC, each of which can be found on our website, www.arraytechinc.com.

    Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

    Non-GAAP Financial Information

    This press release includes certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA, Adjusted net income, Adjusted net income per share, Adjusted general and administrative expense and Free cash flow.

    We define Adjusted gross profit as gross profit plus (i) amortization of developed technology and (ii) other costs if applicable. We define Adjusted gross margin as Adjusted gross profit as a percentage of revenue. We define Adjusted EBITDA as net income (loss) plus (i) other expense, net, (ii) foreign currency (gain) loss, net, (iii) preferred dividends and accretion, (iv) interest expense, (v) income tax (benefit) expense, (vi) depreciation expense, (vii) amortization of intangibles, (viii) amortization of developed technology, (ix) equity-based compensation, (x) change in fair value of contingent consideration, (xi) impairment of long-lived assets, (xii) goodwill impairment, (xiii) certain legal expenses, and (xiv) other costs. We define Adjusted net income as net income (loss) to common shareholders plus (i) amortization of intangibles, (ii) amortization of developed technology, (iii) amortization of debt discount and issuance costs (iv) preferred accretion, (v) equity-based compensation, (vi) change in fair value of contingent consideration, (vii) impairment of long-lived assets, (viii) goodwill impairment, (ix) certain legal expenses, (x) other costs, and (xi) income tax (benefit) expense adjustments. We define Adjusted general and administrative expense as general and administrative expense less (i) equity based compensation, (ii) certain legal expenses, (iii) other costs and (iv) income tax expense adjustments. We define Free cash flow as Cash provided by (used in) operating activities less purchase of property, plant and equipment and cash payments for the acquisition of right-of-use assets.

    A detailed reconciliation between GAAP results and results excluding special items (“non-GAAP”) is included within this presentation. We calculate net income (loss) per share as net income (loss) to common shareholders divided by the basic and diluted weighted average number of shares outstanding for the applicable period and we define Adjusted net income per share as Adjusted net income (as detailed above) divided by the basic and diluted weighted average number of shares outstanding for the applicable period.

    We believe that these non-GAAP financial measures are provided to enhance the reader’s understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing the Company’s performance, as well as in planning and forecasting future periods. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly titled non-GAAP measures used by other companies.

    Among other limitations, Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income do not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; do not reflect income tax expense or benefit; and other companies in our industry may calculate Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income differently than we do, which limits their usefulness as comparative measures. Because of these limitations, Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP.

    We compensate for these limitations by relying primarily on our GAAP results and using Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income on a supplemental basis.

    You should review the reconciliation of gross profit to Adjusted gross profit and net income (loss) to Adjusted EBITDA and Adjusted net income below and not rely on any single financial measure to evaluate our business.

    (1) A reconciliation of the most comparable GAAP measure to its Non-GAAP measure is included below.
    (2) A reconciliation of projected Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income per share, which are forward-looking measures that are not prepared in accordance with GAAP, to the most directly comparable GAAP financial measures, is not provided because we are unable to provide such reconciliation without unreasonable effort. The inability to provide a quantitative reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the components of the applicable GAAP measures and non-GAAP adjustments may be recognized. The GAAP measures may include the impact of such items as non-cash share-based compensation, revaluation of the fair-value of our contingent consideration, and the tax effect of such items, in addition to other items we have historically excluded from Adjusted EBITDA and Adjusted net income per share. We expect to continue to exclude these items in future disclosures of these non-GAAP measures and may also exclude other similar items that may arise in the future (collectively, “non-GAAP adjustments”). The decisions and events that typically lead to the recognition of non-GAAP adjustments are inherently unpredictable as to if or when they may occur. As such, for our 2025 outlook, we have not included estimates for these items and are unable to address the probable significance of the unavailable information, which could be material to future results.

    Array Technologies, Inc. and Subsidiaries
    Consolidated Balance Sheets (unaudited)
    (in thousands, except per share and share amounts)
     
      December 31,
        2024       2023  
    ASSETS
    Current assets      
    Cash and cash equivalents $ 362,992     $ 249,080  
    Restricted cash   1,149       —  
    Accounts receivable, net   275,838       332,152  
    Inventories   200,818       161,964  
    Prepaid expenses and other   157,927       89,085  
    Total current assets   998,724       832,281  
           
    Property, plant and equipment, net   26,222       27,893  
    Goodwill   160,189       435,591  
    Other intangible assets, net   181,409       354,389  
    Deferred income tax assets   17,754       15,870  
    Other assets   41,701       40,717  
    Total assets $ 1,425,999     $ 1,706,741  
           
    LIABILITIES, REDEEMABLE PERPETUAL PREFERRED STOCK AND STOCKHOLDERS’ EQUITY
    Current liabilities      
    Accounts payable $ 172,368     $ 119,498  
    Accrued expenses and other   91,183       70,211  
    Accrued warranty reserve   2,063       2,790  
    Income tax payable   5,227       5,754  
    Deferred revenue   119,775       66,488  
    Current portion of contingent consideration   1,193       1,427  
    Current portion of debt   30,714       21,472  
    Other current liabilities   15,291       48,051  
    Total current liabilities   437,814       335,691  
           
    Deferred income tax liabilities   21,398       66,858  
    Contingent consideration, net of current portion   7,868       8,936  
    Other long-term liabilities   18,684       20,428  
    Long-term warranty   4,830       3,372  
    Long-term debt, net of current portion   646,570       660,948  
    Total liabilities   1,137,164       1,096,233  
           
    Commitments and contingencies (Note 16)      
           
    Series A Redeemable Perpetual Preferred Stock: $0.001 par value; 500,000 shares authorized; 460,920 and 432,759 issued, respectively; liquidation preference of $493.1 million at both dates   406,931       351,260  
           
    Stockholders’ equity      
    Preferred stock $0.001 par value – 4,500,000 shares authorized; none issued at respective dates   —       —  
    Common stock $0.001 par value – 1,000,000,000 shares authorized; 151,951,652 and 151,242,120 shares issued at respective dates   151       151  
    Additional paid-in capital   297,780       344,517  
    Accumulated deficit   (370,624 )     (130,230 )
    Accumulated other comprehensive income (loss)   (45,403 )     44,810  
    Total stockholders’ equity   (118,096 )     259,248  
    Total liabilities, redeemable perpetual preferred stock and stockholders’ equity $ 1,425,999     $ 1,706,741  
    Array Technologies, Inc. and Subsidiaries
    Consolidated Statements of Operations (unaudited)
    (in thousands, except per share amounts)
     
      Three Months Ended
    December 31,    		   Year Ended
    December 31,
        2024       2023       2024       2023  
    Revenue $ 275,232     $ 341,615     $ 915,807     $ 1,576,551  
    Cost of revenue:              
    Cost of product and service revenue   193,273       253,746       603,572       1,146,442  
    Amortization of developed technology   3,640       3,640       14,558       14,558  
    Total cost of revenue   196,913       257,386       618,130       1,161,000  
    Gross profit   78,319       84,229       297,677       415,551  
                   
    Operating expenses:              
    General and administrative   45,663       43,710       160,567       159,535  
    Change in fair value of contingent consideration   396       732       125       2,964  
    Depreciation and amortization   8,702       9,567       36,086       38,928  
    Long-lived assets impairment   91,904       —       91,904   —   —  
    Goodwill impairment   74,000       —       236,000       —  
    Total operating expenses   220,665       54,009       524,682       201,427  
                   
    (Loss) income from operations   (142,346 )     30,220       (227,005 )     214,124  
                   
    Other income (expense), net   654       (888 )     (1,008 )     (1,015 )
    Interest income   4,092       2,206       16,777       8,330  
    Foreign currency (loss) gain, net   (3,442 )     (326 )     (4,515 )     (53 )
    Interest expense   (9,007 )     (8,857 )     (34,825 )     (44,229 )
    Total other (expense) income   (7,703 )     (7,865 )     (23,571 )     (36,967 )
                   
    (Loss) income before income tax expense (benefit)   (150,049 )     22,355       (250,576 )     177,157  
    Income tax (benefit) expense   (23,146 )     3,013       (10,182 )     39,917  
    Net (loss) income   (126,903 )     19,342       (240,394 )     137,240  
    Preferred dividends and accretion   14,338       13,332       55,670       51,691  
    Net (loss) income to common shareholders $ (141,241 )   $ 6,010     $ (296,064 )   $ 85,549  
                   
    (Loss) income per common share              
    Basic $ (0.93 )   $ 0.04     $ (1.95 )   $ 0.57  
    Diluted $ (0.93 )   $ 0.04     $ (1.95 )   $ 0.56  
                   
    Weighted average common shares outstanding              
    Basic   151,944       151,175       151,754       150,942  
    Diluted   151,944       152,110       151,754       152,022  
    Array Technologies, Inc. and Subsidiaries
    Consolidated Statements of Cash Flows (unaudited)
    (in thousands)
     
      Three Months Ended
    December 31,    		   Year Ended
    December 31,
        2024       2023       2024       2023  
    Operating activities:              
    Net income (loss) $ (126,903 )   $ 19,342     $ (240,394 )   $ 137,240  
    Adjustments to net income (loss):              
    Goodwill impairment   74,000       —       236,000       —  
    Impairment of long-lived assets   91,904       —       91,904       —  
    Provision for bad debts   (1,357 )     2,644       2,058       2,527  
    Deferred tax benefit   (30,371 )     (6,534 )     (37,650 )     (8,862 )
    Depreciation and amortization   9,206       9,950       38,221       40,268  
    Amortization of developed technology   3,640       3,640       14,558       14,558  
    Amortization of debt discount and issuance costs   1,435       1,447       6,087       10,570  
    Gain on debt refinancing   —       (457 )     —       (457 )
    Equity-based compensation   3,498       2,845       10,349       14,540  
    Change in fair value of contingent consideration   396       732       125       2,964  
    Warranty provision   3,127       1,075       3,163       4,666  
    Write-down of inventories   442       1,844       2,923       6,431  
    Changes in operating assets and liabilities, net of business acquisition:              
    Accounts receivable   (442 )     99,164       41,423       92,800  
    Inventories   (14,823 )     54,189       (44,787 )     66,743  
    Income tax receivables   33       (3,156 )     (4,112 )     9  
    Prepaid expenses and other   (24,505 )     (8,700 )     (69,708 )     (10,840 )
    Accounts payable   24,475       (52,097 )     58,180       (37,654 )
    Accrued expenses and other   34,492       (10,019 )     (436 )     5,325  
    Income tax payable   3,790       2,666       (863 )     1,936  
    Lease liabilities   (2,894 )     9,227       (8,624 )     1,177  
    Deferred revenue   8,443       (33,821 )     55,563       (111,986 )
    Net cash provided by operating activities   57,586       93,981       153,980       231,955  
    Investing activities              
    Purchase of property, plant and equipment   (1,701 )     (5,374 )     (7,305 )     (16,989 )
    Retirement/disposal of property, plant and equipment   (4 )     168       34       168  
    Cash payments for the acquisition of right-of-use assets   (11,276 )     —       (11,276 )     —  
    SAFE Investment   (3,000 )     —       (3,000 )     —  
    Sale of equity investment   —       —       11,975       —  
    Net cash used in investing activities   (15,981 )     (5,206 )     (9,572 )     (16,821 )
    Financing activities              
    Series A equity issuance costs   —       —       —       (1,509 )
    Tax withholding related to vesting of equity-based compensation   (18 )     —       (1,752 )     —  
    Proceeds from issuance of other debt   74,035       2,795       93,059       63,311  
    Principal payments on term loan facility   (1,075 )     (1,075 )     (4,300 )     (74,300 )
    Principal payments on other debt   (72,545 )     (19,039 )     (97,424 )     (88,063 )
    Contingent consideration payments   —       —       (1,427 )     (1,200 )
    Net cash used in financing activities   397       (17,319 )     (11,844 )     (101,761 )
    Effect of exchange rate changes on cash and cash equivalent balances   (10,233 )     3,614       (17,503 )     1,806  
    Net change in cash and cash equivalents   31,769       75,070       115,061       115,179  
    Cash and cash equivalents and restricted cash, beginning of period   332,372       174,010       249,080       133,901  
    Cash and cash equivalents and restricted cash, end of period $ 364,141     $ 249,080     $ 364,141     $ 249,080  
                   
    Supplemental cash flow information              
    Cash paid for interest $ 8,989     $ 8,995     $ 38,655     $ 43,949  
    Cash paid for income taxes (net of refunds) $ 2,746     $ 9,145     $ 27,966     $ 45,942  
                   
    Non-cash investing and financing              
    Dividends accrued on Series A $ (13,668 )   $ 6,803     $ 7,246     $ 26,370  
    Array Technologies, Inc.
    Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Income, General and Administrative Expense, and Free Cash Flow Reconciliation (unaudited)
    (in thousands, except per share amounts)
     

    The following table reconciles Gross profit to Adjusted gross profit:

      Three Months Ended
    December 31,    		   Year Ended
    December 31,
        2024       2023       2024       2023  
    Revenue   275,232       341,615       915,807       1,576,551  
    Cost of revenue   196,913       257,386       618,130       1,161,000  
    Gross profit   78,319       84,229       297,677       415,551  
    Gross margin   28.5 %     24.7 %     32.5 %     26.4 %
                   
    Amortization of developed technology   3,640       3,640       14,558       14,558  
    Adjusted gross profit   81,959       87,869       312,235       430,109  
    Adjusted gross margin   29.8 %     25.7 %     34.1 %     27.3 %
     

    The following table reconciles Net income to Adjusted EBITDA:

      Three Months Ended
    December 31,    		   Year Ended
    December 31,
        2024       2023       2024       2023  
    Net (loss) income $ (126,903 )   $ 19,342     $ (240,394 )   $ 137,240  
    Preferred dividends and accretion   14,338       13,332       55,670       51,691  
    Net (loss) income to common shareholders $ (141,241 )   $ 6,010     $ (296,064 )   $ 85,549  
    Other expense, net   (4,746 )     (1,318 )     (15,769 )     (7,315 )
    Foreign currency loss (gain), net   3,442       326       4,515       53  
    Preferred dividends and accretion   14,338       13,332       55,670       51,691  
    Interest expense   9,007       8,857       34,825       44,229  
    Income tax (benefit) expense   (23,146 )     3,013       (10,182 )     39,917  
    Depreciation expense   1,140       772       4,410       2,669  
    Amortization of intangibles   8,142       9,186       33,811       37,607  
    Amortization of developed technology   3,640       3,640       14,558       14,558  
    Equity-based compensation   3,498       2,648       10,349       14,578  
    Change in fair value of contingent consideration   396       732       125       2,964  
    Long-lived assets impairment   91,904       —       91,904       —  
    Goodwill impairment   74,000       —       236,000       —  
    Certain legal expenses(a)   2,240       244       6,773       898  
    Other costs(b)   2,586       736       2,628       736  
    Adjusted EBITDA $ 45,200     $ 48,178     $ 173,553     $ 288,134  
     

    (a) Represents certain legal fees and other related costs associated with (i) Actions filed against the company and certain officers and directors alleging violations of the Securities Exchange Acts of 1934 and 1933, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI, and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

    (b) For the three months ended December 31, 2024, other costs represent costs related to the settlement of a regional tax dispute for a period prior to the acquisition of STI. For the twelve months ended December 31, 2024, other costs also include costs related to Capped-Call accounting treatment evaluation and the settlement of a regional tax dispute. For the three months ended December 31, 2023, other costs represent costs related to Capped-Call accounting treatment evaluation.

    The following table reconciles Net income to Adjusted net income:

      Three Months Ended
    December 31,    		   Year Ended
    December 31,
        2024       2023       2024       2023  
    Net (loss) income $ (126,903 )   $ 19,342     $ (240,394 )   $ 137,240  
    Preferred dividends and accretion   14,338       13,332       55,670       51,691  
    Net (loss) income to common shareholders $ (141,241 )   $ 6,010     $ (296,064 )   $ 85,549  
    Amortization of intangibles   8,142       9,187       33,811       37,607  
    Amortization of developed technology   3,640       3,640       14,558       14,558  
    Amortization of debt discount and issuance costs   1,547       1,447       6,199       10,570  
    Preferred accretion   7,093       6,528       27,510       25,320  
    Equity based compensation   3,498       2,648       10,349       14,578  
    Change in fair value of contingent consideration   396       732       125       2,964  
    Impairment of long-lived assets   91,904       —       91,904       —  
    Goodwill impairment   74,000       —       236,000       —  
    Certain legal expenses(a)   2,240       244       6,773       898  
    Other costs(b)   2,586       736       2,628       736  
    Income tax expense adjustments(c)   (28,688 )     (4,757 )     (42,596 )     (20,863 )
    Adjusted net income $ 25,117     $ 26,415     $ 91,197     $ 171,917  
                   
    (Loss) income per common share              
    Basic $ (0.93 )   $ 0.04     $ (1.95 )   $ 0.57  
    Diluted $ (0.93 )   $ 0.04     $ (1.95 )   $ 0.56  
    Weighted average number of common shares outstanding              
    Basic   151,944       151,175       151,754       150,942  
    Diluted   151,944       152,110       151,754       152,022  
                   
    Adjusted net income per common share              
    Basic $ 0.17     $ 0.17     $ 0.60     $ 1.14  
    Diluted $ 0.16     $ 0.17     $ 0.60     $ 1.13  
    Weighted average number of common shares outstanding              
    Basic   151,944       151,175       151,754       150,942  
    Diluted   152,255       152,110       152,285       152,022  
     

    (a) Represents certain legal fees and other related costs associated with (i) Actions filed against the company and certain officers and directors alleging violations of the Securities Exchange Acts of 1934 and 1933, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

    (b) For the three months ended December 31, 2024, other costs represent costs related to the settlement of a regional tax dispute for a period prior to the acquisition of STI. For the twelve months ended December 31, 2024, other costs also include costs related to Capped-Call accounting treatment evaluation and the settlement of a tax dispute. For the three months ended December 31, 2023, other costs represent costs related to Capped-Call accounting treatment evaluation.

    (c) Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax.

    The following table reconciles General and administrative expense to Adjusted general and administrative expense:

           
      Three Months Ended
    December 31,    		   Year Ended
    December 31,
        2024       2023       2024       2023  
    General and administrative expense   45,663       43,710       160,567       159,535  
    Equity based compensation   3,498       2,648       10,349       14,578  
    Certain legal expenses(a)   2,240       244       6,773       898  
    Other costs(b)   2,586       736       2,628       736  
    Income tax expense adjustments(c)   (28,688 )     (4,757 )     (42,596 )     (20,863 )
    Adjusted general and administrative expense   25,299       42,581       137,721       154,884  
     

    (a) Represents certain legal fees and other related costs associated with (i) Actions filed against the company and certain officers and directors alleging violations of the Securities Exchange Acts of 1934 and 1933, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

    (b) For the three months ended December 31, 2024, other costs represent costs related to the settlement of a regional tax dispute for a period prior to the acquisition of STI. For the twelve months ended December 31, 2024, other costs also include costs related to Capped-Call accounting treatment evaluation and the settlement of a tax dispute. For the Three months ended December 31, 2023, other costs represent costs related to Capped-Call accounting treatment evaluation.

    (c) Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax.

    The following table reconciles new cash provided by operating activities to Free cash flow:

      Three Months Ended
    December 31,    		   Year Ended
    December 31,
        2024       2023       2024       2023  
    Net cash provided by operating activities   57,586       93,981       153,980       231,955  
    Purchase of property, plant and equipment   (1,701 )     (5,374 )     (7,305 )     (16,989 )
    Cash payments for the acquisition of right-of-use assets   (11,276 )     —       (11,276 )     —  
    Free cash flow   44,609       88,607       135,399       214,966  

    The MIL Network –

  • MIL-OSI: Definitive Healthcare Reports Financial Results for Fourth Quarter and Full Fiscal Year 2024

    Source: GlobeNewswire (MIL-OSI)

    FRAMINGHAM, Mass., Feb. 27, 2025 (GLOBE NEWSWIRE) — Definitive Healthcare Corp. (“Definitive Healthcare” or the “Company”) (Nasdaq: DH), an industry leader in healthcare commercial intelligence, today announced financial results for the quarter and full year ended December 31, 2024. 

    Fourth Quarter 2024 Financial Highlights:

    • Revenue was $62.3 million, a decrease of 6% from $65.9 million in Q4 2023. 
    • Net Loss, inclusive of goodwill impairment charges of $97.1 million, was $(84.7) million, or (136)% of revenue, compared to $(13.4) million or (20)% of revenue in Q4 2023.  
    • Adjusted Net Income was $12.6 million, compared to $10.6 million in Q4 2023.   
    • Adjusted EBITDA was $17.5 million, or 28% of revenue, compared to $19.8 million, or 30% of revenue in Q4 2023.  
    • Cash Flow from Operations was $8.1 million in the quarter.
    • Unlevered Free Cash Flow was $(1.6) million in the quarter.

    Full Year 2024 Financial Highlights:

    • Revenue was $252.2 million, compared to $251.4 million for the full year 2023. 
    • Net Loss, inclusive of goodwill impairment charges of $688.9 million, was $(591.4) million, or (235)% of revenue, compared to $(289.6) million, inclusive of goodwill impairment charges of $287.4 million, or (115)% of revenue for the full year 2023.  
    • Adjusted Net Income was $55.1 million, compared to $46.7 million for the full year 2023.   
    • Adjusted EBITDA was $79.1 million, or 31% of revenue, compared to $74.5 million, or 30% of revenue for the full year 2023.  
    • Cash Flow from Operations was $58.2 million for the full year 2024, up 41% from $41.2 million for the full year 2023.
    • Unlevered Free Cash Flow was $72.5 million for the full year 2024, up 6% from $68.6 million for the full year 2023.

    “Revenue and adjusted EBITDA were above the high end of our guided ranges despite challenging commercial conditions,” said Kevin Coop, CEO of Definitive Healthcare. “We executed on delivering new business growth, securing new logos and expanding relationships with existing customers through upsell and cross-sell opportunities. We are committed to building on this momentum as we move into 2025.

    “I’m also pleased to announce that after a thorough search process, Casey Heller, our Senior Vice President of Finance, will assume the role of Chief Financial Officer, effective on June 2, 2025. We expect a smooth transition as she is already responsible for a significant portion of the company’s financial functions, including all aspects of commercial and operational finance, FP&A, and investor relations. In addition, Rick Booth will continue to serve as CFO until early June to give us time to backfill Casey’s current position and enable her to hit the ground running as CFO with a full team.”

    Recent Business and Operating Highlights: 

    Customer Wins

    In the fourth quarter, Definitive Healthcare continued to win new logos across all end-markets, by providing the data, insights, and integrations that drive their critical business use cases. Customer wins for the quarter included:

    • A behavioral and mental health screening company is leveraging our reference, affiliation, and claims data to identify and build stronger relationships with the right doctors and practices. They’ve also created an AI-powered tool that leverages insights from our data to compare physician prescribing habits, helping health systems improve care and drive growth.
    • A leading U.S. supplier of industrial, medical, and specialty gases chose us to gain insights into complex IDN hierarchies, identify high-volume facilities, navigate the Healthcare RFP process, and expand into new markets like surgery centers and post-acute facilities. This partnership also helps them connect with key nursing, procurement, and purchasing executives at both the facility and group purchasing organization (GPO) levels.
    • A large pharmaceutical company is leveraging our data along with their own internal and third-party data inside a robust master data management (MDM) system they have built, to develop a sophisticated patient and provider segmentation machine learning model, along with a next-best action program, to support the launch of a new pain medication. Definitive not only provides critical data and services to enable this integration, but our expertise also increases the value the customer derives from their existing platform investments.

    Business Outlook 

    Based on information as of February 27, 2025, the Company is issuing the following financial guidance.  

    First Quarter 2025:  

    • Revenue is expected to be in the range of $55.5 – $57.0 million. 
    • Adjusted Operating Income is expected to be in the range of $7.5 – $8.5 million. 
    • Adjusted EBITDA is expected to be in the range of $10.5 – $11.5 million, and 19 – 20% adjusted EBITDA margin. 
    • Adjusted Net Income is expected to be $3.0 – $4.0 million. 
    • Adjusted Net Income Per Diluted Share is expected to be approximately $0.02 per share on approximately 153.3 million weighted-average shares outstanding. 

    Full Year 2025:  

    • Revenue is expected to be in the range of $230.0 – $240.0 million.
    • Adjusted Operating Income is expected to be in the range of $49.0 – $53.0 million. 
    • Adjusted EBITDA is expected to be in the range of $61.0 – $65.0 million, for a full-year adjusted EBITDA margin ranging from 26 – 28%. 
    • Adjusted Net Income is expected to be $30.0 – $34.0 million. 
    • Adjusted Net Income Per Diluted Share is expected to be $0.19 – $0.22 per share on approximately 153.9 million weighted-average shares outstanding. 

    We do not provide a quantitative reconciliation of the forward-looking non-GAAP financial measures included in this press release to the most directly comparable GAAP measures due to the high variability and difficulty in predicting certain items excluded from these non-GAAP financial measures; in particular, the effects of equity-based compensation expense, taxes and amounts under the tax receivable agreement, deferred tax assets and deferred tax liabilities, and transaction, integration, and restructuring expenses. We expect the variability of these excluded items may have a significant and potentially unpredictable impact on our future GAAP financial results. 

    Conference Call Information 

    Definitive Healthcare will host a conference call today February 27, 2025, at 5:00 p.m. (Eastern Time) to discuss the Company’s full financial results and current business outlook. Participants may access the call at 1-877-358-7298 or 1-848-488-9244. Shortly after the conclusion of the call, a replay of this conference call will be available through March 29, 2025, at 1-800-645-7964 or 1-757-849-6722. The replay passcode is 1765#. A live audio webcast of the event will be available on Definitive Healthcare’s Investor Relations website at https://ir.definitivehc.com/.

    About Definitive Healthcare 

    At Definitive Healthcare, our passion is to transform data, analytics and expertise into healthcare commercial intelligence. We help clients uncover the right markets, opportunities and people, so they can shape tomorrow’s healthcare industry. Learn more at definitivehc.com.

    Forward-Looking Statements 

    This press release includes forward-looking statements that reflect our current views with respect to future events and financial performance. Such statements are provided under the “safe harbor” protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by words or phrases written in the future tense and/or preceded by words such as “likely,” “will,” “should,” “may,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “assumes,” “would,” “potentially” or similar words or variations thereof, or the negative thereof, references to future periods, or by the inclusion of forecasts or projections, but these terms are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding our outlook, financial guidance, the benefits of our healthcare commercial intelligence solutions, our overall future prospects, customer behaviors and use of our solutions, the market, industry and macroeconomic environment, our plans to improve our operational and financial performance and our business, our ability to execute on our plans, customer growth, including our upsell and cross-sell opportunities, and our ability to successfully transition executive leadership. Forward-looking statements in this press release are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the following: global geopolitical tension and difficult macroeconomic conditions; actual or potential changes in international, national, regional and local economic, business and financial conditions, including trade tensions, recessions, inflation, high interest rates, volatility in the capital markets and related market uncertainty; our inability to acquire new customers and generate additional revenue from existing customers; our inability to generate sales of subscriptions to our platform or any decline in demand for our platform and the data we offer; the competitiveness of the market in which we operate and our ability to compete effectively; the failure to maintain and improve our platform, or develop new modules or insights for healthcare commercial intelligence; the inability to obtain and maintain accurate, comprehensive or reliable data, which could result in reduced demand for our platform; the loss of our access to our data providers; the failure to respond to advances in healthcare commercial intelligence; an inability to attract new customers and expand subscriptions of current customers; our ability to successfully transition executive leadership; the possibility that our security measures are breached or unauthorized access to data is otherwise obtained; and the risks of being required to collect sales or other related taxes for subscriptions to our platform in jurisdictions where we have not historically done so.  

    Additional factors or events that could cause our actual performance to differ from these forward-looking statements may emerge from time to time, and it is not possible for us to predict all of them. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual financial condition, results of operations, future performance and business may vary in material respects from the performance projected in these forward-looking statements. 

    For additional discussion of factors that could impact our operational and financial results, refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 that will be filed following this earnings release, as well as our Current Reports on Form 8-K and other subsequent SEC filings, which are or will be available on the Investor Relations page of our website at ir.definitivehc.com and on the SEC website at www.sec.gov. 

    All information in this press release speaks only as of the date on which it is made. We undertake no obligation to publicly update this information, whether as a result of new information, future developments or otherwise, except as may be required by law. 

    Website 

    Definitive Healthcare intends to use its website as a distribution channel of material company information. Financial and other important information regarding the Company is routinely posted on and accessible through the Company’s website at https://www.definitivehc.com/. Accordingly, you should monitor the investor relations portion of our website at https://ir.definitivehc.com/ in addition to following our press releases, SEC filings, and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about the Company when you enroll your email address by visiting the “Email Alerts” section of our investor relations page at https://ir.definitivehc.com/. 

    Non-GAAP Financial Measures   

    We have presented supplemental non-GAAP financial measures as part of this earnings release. We believe that these supplemental non-GAAP financial measures are useful to investors because they allow for an evaluation of the Company with a focus on the performance of its core operations, including providing meaningful comparisons of financial results to historical periods and to the financial results of peer and competitor companies. Our use of these non-GAAP terms may vary from the use of similar terms by other companies in our industry and accordingly may not be comparable to similarly titled measures used by other companies and are not measures of performance calculated in accordance with GAAP. Our presentation of these non-GAAP financial measures are intended as supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. These non-GAAP financial measures should not be considered as alternatives to loss from operations, net loss, earnings per share, or any other performance measures derived in accordance with GAAP or as measures of operating cash flows or liquidity. A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. In evaluating our non-GAAP financial measures, you should be aware that in the future, we may incur expenses similar to those eliminated in these presentations.

    We refer to Unlevered Free Cash Flow, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Net Income and Adjusted Net Income Per Diluted Share as non-GAAP financial measures. These non-GAAP financial measures are not required by or prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). These are supplemental financial measures of our performance and should not be considered substitutes for cash provided by (used in) operating activities, loss from operations, net (loss) income, net (loss) income margin, gross profit, gross margin, or any other measure derived in accordance with GAAP. 

    We define Unlevered Free Cash Flow as net cash provided by operating activities less purchases of property, equipment and other assets, plus cash interest expense, and cash payments related to transaction, integration, and restructuring related expenses, earnouts, and other non-core items. Unlevered Free Cash Flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service requirements. 

    We define EBITDA as earnings before debt-related costs, including interest expense, net, income taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude certain items of a significant or unusual nature, including other income, net, equity-based compensation, transaction, integration, and restructuring expenses, goodwill impairments and other non-core expenses. Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of revenue. Adjusted EBITDA and Adjusted EBITDA Margin are key metrics used by management and our board of directors to assess the profitability of our operations. We believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to help investors to assess our operating performance because these metrics eliminate non-core and unusual items and non-cash expenses, which we do not consider indicative of ongoing operational performance. We believe that these metrics are helpful to investors in measuring the profitability of our operations on a consolidated level.  

    We define Adjusted Gross Profit as gross profit excluding acquisition-related amortization and equity-based compensation costs and Adjusted Gross Margin is defined as Adjusted Gross Profit as a percentage of revenue. Adjusted Gross Profit and Adjusted Gross Margin are key metrics used by management and our board of directors to assess our operations. We exclude acquisition-related depreciation and amortization expenses as they have no direct correlation to the cost of operating our business on an ongoing basis. A small portion of equity-based compensation is included in cost of revenue in accordance with GAAP but is excluded from our Adjusted Gross Profit calculations due to its non-cash nature.  

    We define Adjusted Operating Income as loss from operations plus acquisition related amortization, equity-based compensation, transaction, integration, and restructuring expenses, goodwill impairments and other non-core expenses.  

    We define Adjusted Net Income as Adjusted Operating Income less interest (expense), income net, recurring income tax (provision) benefit, foreign currency gain (loss), and tax impacts of adjustments. We define Adjusted Net Income Per Diluted Share as Adjusted Net Income divided by diluted outstanding shares. 

    In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur expenses similar to those eliminated in these presentations. 

    Investor Contact: 
    Brian Denyeau 
    ICR for Definitive Healthcare 
    brian.denyeau@icrinc.com
    646-277-1251 

    Media Contact: 
    Bethany Swackhamer
    bswackhamer@definitivehc.com

     
    Definitive Healthcare Corp.
    Consolidated Balance Sheets
    (amounts in thousands, except number of shares and par value; unaudited)
             
        December 31, 2024   December 31, 2023
    Assets        
    Current assets:        
    Cash and cash equivalents   $ 105,378     $ 130,976  
    Short-term investments     184,786       177,092  
    Accounts receivable, net     53,232       59,249  
    Prepaid expenses and other assets     13,040       13,120  
    Deferred contract costs     13,736       13,490  
    Total current assets     370,172       393,927  
    Property and equipment, net     3,791       4,471  
    Operating lease right-of-use assets, net     7,521       9,594  
    Other assets     2,300       2,388  
    Deferred contract costs     14,389       17,320  
    Intangible assets, net     297,933       323,121  
    Goodwill     393,283       1,075,080  
    Total assets   $ 1,089,389     $ 1,825,901  
    Liabilities and Equity        
    Current liabilities:        
    Accounts payable   $ 10,763     $ 5,787  
    Accrued expenses and other liabilities     40,896       51,529  
    Deferred revenue     93,344       97,377  
    Term loan     13,750       13,750  
    Operating lease liabilities     2,408       2,239  
    Total current liabilities     161,161       170,682  
    Long-term liabilities:        
    Deferred revenue     32       9  
    Term loan     229,368       242,567  
    Operating lease liabilities     7,586       9,372  
    Tax receivable agreements liability     49,511       127,000  
    Deferred tax liabilities     25,088       67,163  
    Other liabilities     9,449       9,934  
    Total liabilities     482,195       626,727  
             
    Equity:        
    Class A Common Stock, par value $0.001, 600,000,000 shares authorized, 113,953,554 and 116,562,252 shares issued and outstanding at December 31, 2024 and 2023, respectively     114       117  
    Class B Common Stock, par value $0.00001, 65,000,000 shares authorized, 39,439,198 and 39,375,806 shares issued and outstanding, respectively, at December 31, 2024, and 39,762,700 and 39,168,047 shares issued and outstanding, respectively, at December 31, 2023     —       —  
    Additional paid-in capital     1,085,445       1,086,581  
    Accumulated other comprehensive (deficit) income     (610 )     2,109  
    Accumulated deficit     (640,574 )     (227,450 )
    Noncontrolling interests     162,819       337,817  
    Total equity     607,194       1,199,174  
    Total liabilities and equity   $ 1,089,389     $ 1,825,901  
             
    Definitive Healthcare Corp.
    Consolidated Statements of Operations
    (amounts in thousands, except share amounts and per share data; unaudited)
                     
        Three Months Ended December 31,   Year Ended December 31,
          2024       2023       2024       2023  
    Revenue   $ 62,288     $ 65,932     $ 252,202     $ 251,415  
    Cost of revenue:                
    Cost of revenue exclusive of amortization (1)     10,967       9,447       40,684       34,740  
    Amortization     3,719       3,066       14,049       12,742  
    Gross profit     47,602       53,419       197,469       203,933  
    Operating expenses:                
    Sales and marketing (1)     20,372       23,605       83,807       94,534  
    Product development (1)     8,982       11,569       36,518       42,441  
    General and administrative (1)     8,503       16,567       49,267       58,861  
    Depreciation and amortization     9,413       9,935       37,618       39,008  
    Transaction, integration, and restructuring expenses     2,835       1,823       12,225       11,489  
    Goodwill impairment     97,060       —       688,854       287,400  
    Total operating expenses     147,165       63,499       908,289       533,733  
    Loss from operations     (99,563 )     (10,080 )     (710,820 )     (329,800 )
    Other (expense) income, net:                
    Interest expense, net     (303 )     (125 )     (245 )     (1,559 )
    Other income (expense), net     9,254       (1,982 )     77,320       23,179  
    Total other income (expense), net     8,951       (2,107 )     77,075       21,620  
    Loss before income taxes     (90,612 )     (12,187 )     (633,745 )     (308,180 )
    Benefit from (provision for) income taxes     5,895       (1,175 )     42,299       18,553  
    Net loss     (84,717 )     (13,362 )     (591,446 )     (289,627 )
    Less: Net loss attributable to noncontrolling interests     (25,642 )     (3,129 )     (178,322 )     (87,239 )
    Net loss attributable to Definitive Healthcare Corp.   $ (59,075 )   $ (10,233 )   $ (413,124 )   $ (202,388 )
    Net loss per share of Class A Common Stock:                
    Basic   $ (0.51 )   $ (0.09 )   $ (3.54 )   $ (1.79 )
    Diluted   $ (0.51 )   $ (0.09 )   $ (3.54 )   $ (1.79 )
    Weighted average Common Stock outstanding:                
    Basic     115,015,489       116,418,495       116,640,183       112,764,537  
    Diluted     115,015,489       116,418,495       116,640,183       112,764,537  
                     
    (1) Amounts include equity-based compensation expense as follows:      
                     
        Three Months Ended December 31,   Year Ended December 31,
          2024       2023       2024       2023  
    Cost of revenue   $ 171     $ 267     $ 839     $ 1,097  
    Sales and marketing     1,449       3,110       6,235       11,407  
    Product development     1,651       3,572       8,579       13,138  
    General and administrative     4,094       6,305       22,432       23,097  
    Total equity-based compensation expense   $ 7,365     $ 13,254     $ 38,085     $ 48,739  
                     
    Definitive Healthcare Corp.
    Consolidated Statements of Cash Flows
    (amounts in thousands; unaudited)
                   
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Cash flows provided by (used in) operating activities:              
    Net loss $ (84,717 )   $ (13,362 )   $ (591,446 )   $ (289,627 )
    Adjustments to reconcile net loss to net cash provided by operating activities:              
    Depreciation and amortization   526       562       2,245       1,953  
    Amortization of intangible assets   12,606       12,439       49,422       49,797  
    Amortization of deferred contract costs   3,978       3,488       15,441       12,963  
    Equity-based compensation   7,365       13,254       38,085       48,739  
    Amortization of debt issuance costs   175       175       702       702  
    Provision for bad debt expense   —       554       947       1,374  
    Non-cash restructuring charges   192       —       1,239       155  
    Goodwill impairment charges   97,060       —       688,854       287,400  
    Tax receivable agreement remeasurement   (8,758 )     1,507       (76,909 )     (23,470 )
    Changes in fair value of contingent consideration   1,460       302       (1,780 )     302  
    Deferred income taxes   (6,061 )     1,015       (42,670 )     (18,713 )
    Changes in operating assets and liabilities:              
    Accounts receivable   (17,455 )     (18,559 )     5,693       811  
    Prepaid expenses and other assets   (627 )     (1,348 )     (7,832 )     (7,156 )
    Deferred contract costs   (4,481 )     (5,770 )     (12,756 )     (18,790 )
    Contingent consideration   —       —       (602 )     —  
    Accounts payable, accrued expenses, and other liabilities   (285 )     2,919       (5,458 )     1,330  
    Deferred revenue   7,157       7,533       (4,979 )     (6,580 )
    Net cash provided by operating activities   8,135       4,709       58,196       41,190  
    Cash flows (used in) provided by investing activities:              
    Purchases of property, equipment, and other assets   (10,901 )     (594 )     (12,344 )     (2,977 )
    Purchases of short-term investments   (111,634 )     (45,595 )     (304,304 )     (259,208 )
    Maturities of short-term investments   96,265       100,596       303,769       275,426  
    Cash paid for acquisitions and investments, net of cash acquired   —       —       (13,530 )     (45,023 )
    Net cash (used in) provided by investing activities   (26,270 )     54,407       (26,409 )     (31,782 )
    Cash flows used in financing activities:              
    Repayments of term loans   (3,437 )     (3,438 )     (13,750 )     (8,594 )
    Taxes paid related to net share settlement of equity awards   (278 )     (1,035 )     (7,548 )     (4,432 )
    Repurchases of Class A Common Stock   (7,329 )     —       (22,366 )     —  
    Payments of contingent consideration   —       —       (1,000 )     —  
    Payments under tax receivable agreement   —       —       (6,950 )     (246 )
    Payments of equity offering issuance costs   —       —       —       (30 )
    Member distributions   (2,324 )     (1,589 )     (5,135 )     (12,282 )
    Net cash used in financing activities   (13,368 )     (6,062 )     (56,749 )     (25,584 )
    Net (decrease) increase in cash and cash equivalents   (31,503 )     53,054       (24,962 )     (16,176 )
    Effect of exchange rate changes on cash and cash equivalents   (728 )     462       (636 )     218  
    Cash and cash equivalents, beginning of year   137,609       77,460       130,976       146,934  
    Cash and cash equivalents, end of year $ 105,378     $ 130,976     $ 105,378     $ 130,976  
    Supplemental cash flow disclosures:              
    Cash paid during the period for:              
    Interest $ 3,310     $ 3,684     $ 14,196     $ 14,456  
    Income taxes   —       —       —       136  
    Acquisitions:              
    Net assets acquired, net of cash acquired $ —     $ —     $ 13,675     $ 52,678  
    Working capital adjustment receivable   —       —       (145 )     145  
    Contingent consideration   —       —       —       (7,800 )
    Net cash paid for acquisitions $ —     $ —     $ 13,530     $ 45,023  
                   
    Supplemental disclosure of non-cash investing activities:              
    Capital expenditures included in accounts payable and accrued expenses and other liabilities $ 6,870     $ 47     $ 6,870     $ 47  
                   
    Definitive Healthcare Corp.
    Reconciliations of Non-GAAP Financial Measures to Closest GAAP Equivalent
                   
    Reconciliation of GAAP Operating Cash Flow to Unlevered Free Cash Flow
    (in thousands; unaudited)
                   
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Net cash provided by operating activities $ 8,135     $ 4,709     $ 58,196     $ 41,190  
    Purchases of property, equipment, and other assets   (10,901 )     (594 )     (12,344 )     (2,977 )
    Interest paid in cash   3,310       3,684       14,196       14,456  
    Transaction, integration, and restructuring expenses paid in cash (a)   1,183       1,521       12,766       11,032  
    Earnout payment (b)   —       —       602       —  
    Other non-core items (c)   (3,311 )     1,803       (936 )     4,875  
    Unlevered Free Cash Flow $ (1,584 )   $ 11,123     $ 72,480     $ 68,576  
                   
    (a) Transaction and integration expenses paid in cash primarily represent legal, accounting, and consulting expenses related to our acquisitions. Restructuring expenses paid in cash relate to our restructuring plans announced in the first quarter of 2024 and the first and third quarters of 2023, along with exit costs related to office relocations.
    (b) Earnout payment represents final settlement of contingent consideration included in cash flow from operations.
    (c) Other non-core items represent expenses driven by events that are typically by nature one-time, non-operational, and/or unrelated to our core operations.
                   
    Reconciliation of GAAP Net Loss to Adjusted Net Income and
    GAAP Operating Loss to Adjusted Operating Income
    (in thousands, except per share amounts; unaudited)
                   
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Net loss $ (84,717 )   $ (13,362 )   $ (591,446 )   $ (289,627 )
    Add: Income tax (benefit) provision   (5,895 )     1,175       (42,299 )     (18,553 )
    Add: Interest expense, net   303       125       245       1,559  
    Add: Other (income) expense, net   (9,254 )     1,982       (77,320 )     (23,179 )
    Loss from operations   (99,563 )     (10,080 )     (710,820 )     (329,800 )
    Add: Amortization of intangible assets acquired through business combinations   11,370       11,510       45,239       46,099  
    Add: Equity-based compensation   7,365       13,254       38,085       48,739  
    Add: Transaction, integration, and restructuring expenses   2,835       1,823       12,225       11,489  
    Add: Goodwill impairment   97,060       —       688,854       287,400  
    Add: Other non-core items   (3,311 )     1,803       (936 )     4,875  
    Adjusted Operating Income   15,756       18,310       72,647       68,802  
    Less: Interest expense, net   (303 )     (125 )     (245 )     (1,559 )
    Less: Recurring income tax benefit (provision) (a)   60       (1,175 )     669       1,374  
    Less: Foreign currency gain (loss)   496       (475 )     411       (291 )
    Less: Tax impacts of adjustments to net loss   (3,458 )     (5,886 )     (18,341 )     (21,633 )
    Adjusted Net Income $ 12,551     $ 10,649     $ 55,141     $ 46,693  
    Shares for Adjusted Net Income Per Diluted Share (b)   154,404,162       155,560,756       155,853,282       154,836,706  
    Adjusted Net Income Per Diluted Share $ 0.08     $ 0.07     $ 0.35     $ 0.30  
                   
    (a) Recurring income tax benefit (provision) excludes the income tax impact of goodwill impairment charges.
    (b) Diluted Adjusted Net Income Per Share is computed by giving effect to all potential weighted average Class A common stock and any securities that are convertible into Class A common stock, including Definitive OpCo units and restricted stock units. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method assuming proceeds from unrecognized compensation as required by GAAP. Fully diluted shares are 162,498,543 and 163,153,442 as of December 31, 2024 and 2023, respectively.
                   
    Reconciliation of GAAP Gross Profit and Margin to Adjusted Gross Profit and Margin
    (in thousands; unaudited)
                                     
        Three Months Ended December 31,   Year Ended December 31,
          2024       2023       2024       2023  
    (in thousands)   Amount   % of Revenue   Amount   % of Revenue   Amount   % of Revenue   Amount   % of Revenue
    Reported gross profit and margin   $ 47,602   76 %   $ 53,419   81 %   $ 197,469   78 %   $ 203,933   81 %
    Amortization of intangible assets resulting from acquisition-related purchase accounting adjustments     2,483   4 %     2,137   3 %     9,866   4 %     9,044   4 %
    Equity-based compensation costs     171   0 %     267   0 %     839   0 %     1,097   0 %
    Adjusted gross profit and margin   $ 50,256   81 %   $ 55,823   85 %   $ 208,174   83 %   $ 214,074   85 %
                                     
    Reconciliation of GAAP Net Loss to Adjusted EBITDA
    (in thousands; unaudited)
                                   
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
      Amount   % of Revenue   Amount   % of Revenue   Amount   % of Revenue   Amount   % of Revenue
    Net loss and margin $ (84,717 )     (136 )%   $ (13,362 )     (20 )%   $ (591,446 )   (235 )%   $ (289,627 )   (115 )%
    Interest expense, net   303       0 %     125       0 %     245     0 %     1,559     1 %
    Income tax (benefit) provision   (5,895 )     (9 )%     1,175       2 %     (42,299 )   (17 )%     (18,553 )   (7 )%
    Depreciation & amortization   13,132       21 %     13,001       20 %     51,667     20 %     51,750     21 %
    EBITDA and margin   (77,177 )     (124 )%     939       1 %     (581,833 )   (231 )%     (254,871 )   (101 )%
    Other (income) expense, net (a)   (9,254 )     (15 )%     1,982       3 %     (77,320 )   (31 )%     (23,179 )   (9 )%
    Equity-based compensation (b)   7,365       12 %     13,254       20 %     38,085     15 %     48,739     19 %
    Transaction, integration, and restructuring expenses (c)   2,835       5 %     1,823       3 %     12,225     5 %     11,489     5 %
    Goodwill impairment (d)   97,060       156 %     —       0 %     688,854     273 %     287,400     114 %
    Other non-core items (e)   (3,311 )     (5 )%     1,803       3 %     (936 )   (0 )%     4,875     2 %
    Adjusted EBITDA and margin $ 17,518       28 %   $ 19,801       30 %   $ 79,075     31 %   $ 74,453     30 %
                                   
    (a) Primarily represents TRA liability remeasurement and foreign exchange gains and losses.
    (b) Equity-based compensation represents non-cash compensation expense recognized in association with equity awards made to employees and directors.
    (c) Transaction and integration expenses primarily represent legal, accounting, and consulting expenses and fair value adjustments for contingent consideration related to our acquisitions and strategic partnerships. Restructuring expenses relate to the 2024 Restructuring Plan and those we committed to during the first and third quarters of 2023, as well as impairment and restructuring charges related to office closures, relocations, and consolidations.
                                   
     
    Three Months Ended December 31,    		   Year Ended December 31,                
    (in thousands)   2024       2023       2024       2023                  
    Merger and acquisition due diligence and transaction costs $ 919     $ 1,309     $ 3,329     $ 5,419                  
    Integration costs   176       129       1,115       934                  
    Fair value adjustment for contingent consideration   1,460       302       (1,780 )     302                  
    Restructuring charges for severance and other separation costs   88       83       8,097       4,679                  
    Office closure and relocation restructuring charges and impairments   192       —       1,464       155                  
    Total transaction, integration and restructuring expense $ 2,835     $ 1,823     $ 12,225     $ 11,489                  
                                   
    (d) Goodwill impairment charges represent non-cash, pre-tax, goodwill impairment charges. We experienced declines in our market capitalization as a result of sustained decreases in our stock price, which represented triggering events requiring our management to perform quantitative goodwill impairment tests multiple times in 2024 and during the third quarter of 2023. As a result of the impairment tests conducted in each respective period, we determined that the fair value of our single reporting unit was lower than its carrying value and, accordingly, recorded these impairment charges.
    (e) Other non-core items represent expenses driven by events that are typically by nature one-time, non-operational, and/or unrelated to our core operations. These expenses are comprised of non-core legal and regulatory costs isolated to unique and extraordinary litigation, legal and regulatory matters that are not considered normal and recurring business activity, including sales tax accrual adjustments inclusive of penalties and interest for sales taxes that we may have been required to collect from customers in 2024 and in certain previous years, and other non-recurring legal and regulatory matters. Other non-core items also include consulting fees and severance costs associated with strategic transition initiatives, as well as professional fees related to financing, capital structure changes, and other non-core items.
                                   
     
    Three Months Ended December 31,    		   Year Ended December 31,                
    (in thousands)   2024       2023       2024       2023                  
    Non-core legal and regulatory $ (3,438 )   $ (60 )   $ (3,439 )   $ 2,370                  
    Consulting and severance costs for strategic transition initiatives   1     $ 1,977       2,219     $ 1,977                  
    Other non-core expenses   126       (114 )     284       528                  
    Total other non-core items $ (3,311 )   $ 1,803     $ (936 )   $ 4,875                  
                                   

    The MIL Network –

  • MIL-OSI: Jamf Releases Fourth Quarter and Fiscal Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    MINNEAPOLIS, Feb. 27, 2025 (GLOBE NEWSWIRE) — Jamf (NASDAQ: JAMF), the standard in managing and securing Apple at work, today announced financial results for its fourth quarter and full year ended December 31, 2024, through an earnings release available on the company’s Investor Relations website at https://ir.jamf.com. The earnings release will be furnished to the SEC on Form 8-K.

    Jamf will host a conference call and live webcast for analysts and investors at 3:30 p.m. Central Time (4:30 p.m. Eastern Time) on February 27, 2025.

    The conference call will be webcast live on Jamf’s Investor Relations website at https://ir.jamf.com. Those parties interested in participating via telephone may register on Jamf’s Investor Relations website. The financial tables, earnings presentation, and investor presentation provided in connection with this press release and the accompanying conference call will also be available on Jamf’s Investor Relations website.

    A replay of the call will be available on the Investor Relations website beginning on February 27, 2025, at approximately 6:00 p.m. Central Time (7:00 p.m. Eastern Time).

    Please note that Jamf uses its https://ir.jamf.com website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts.

    About Jamf

    Jamf’s purpose is to simplify work by helping organizations manage and secure an Apple experience that end users love and organizations trust. Jamf is the only company in the world that provides a complete management and security solution for an Apple-first environment designed to be enterprise secure, consumer simple and protect personal privacy. To learn more, visit www.jamf.com.

    Investor Contact
    Jennifer Gaumond
    ir@jamf.com

    Media Contact
    Natali Brockett
    media@jamf.com

    The MIL Network –

  • MIL-OSI USA: VIDEO: Capito Votes to Overturn Biden–Era Natural Gas Tax

    US Senate News:

    Source: United States Senator for West Virginia Shelley Moore Capito
    To watch Chairman Capito’s floor remarks, click here.
    WASHINGTON, D.C. – Today, U.S. Senator Shelley Moore Capito (R-W.Va.), Chairman of the Senate Environment and Public Works (EPW) Committee, voted to overturn the Biden Environmental Protection Agency’s (EPA) Waste Emissions Charge (WEC) regulation as part of the Methane Emissions Reduction Program (MERP) under the Democrats’ Inflation Reduction Act. This rule enabled the collection of the Democrats’ natural gas tax, which would hurt American energy generation, damage our economy, and be detrimental to energy jobs across our country. The Senate approved the Congressional Review Act (CRA) joint resolution of disapproval, which was introduced by U.S. Senator John Hoeven (R-N.D.) and co-sponsored by Chairman Capito, by a vote of 52-47.
    Prior to the final vote on the CRA, Chairman Capito delivered remarks on the Senate floor outlining the consequences of the natural gas tax and the importance of natural gas to American energy dominance, and urged her colleagues to support the measure.
    Below are the floor remarks of Chairman Shelley Moore Capito (R-W.Va.) as delivered.
    “I rise today in support of my friend from North Dakota, Senator Hoeven’s, Congressional Review Act resolution to block the implementation of the Biden administration’s Waste Emissions Charge, otherwise known as the natural gas tax.
    “Since the day this regulation was finalized last November, I pledged that I would work with President Trump and my colleagues in the Congress to repeal this misguided, anti-energy tax. Today in the Senate, that is exactly what we’re working to do.
    “We must recognize that we are in a critical moment for American energy. The North American Energy Reliability Corporation has found that over the next 10 years, due to a rise in energy consumption and the early retirement of our existing fossil fuel generation, our country could face major electric generation and reliability concerns.
    “We must take action now to ensure that our future demand is met, that the lights remain on, our homes remain warm, and our economy keeps moving for Americans all across this country. We can do this by continuing to invest in natural gas.
    “Over 60% of American homes, every day, heat their homes, their water, or their food with natural gas. Natural gas is responsible for over 40% of electricity generation, and fuels more than half of our industrial sector’s process heat. While the natural gas tax fails to recognize this reality, let’s look at what is true.
    “Fracking and shale gas have both revolutionized and transformed American energy, leading to lower prices, job growth, and increased American energy security. According to the Energy Information Administration, the rapid expansion of natural gas-fired power plants, in this country, has decreased the power sector’s carbon dioxide emissions by 35% over the last 25 years.
    “Natural gas has the potential to further reduce American greenhouse gas emissions if we continue to increase production.
    “Natural gas is affordable, reliable, and a clean source of energy, vital to our country and our economy. We should be expanding natural gas production, not restricting it. Instead, the natural gas tax will constrain American natural gas production, leading to increased energy prices and providing a boost to the production of natural gas in Russia.
    “Simply put, repealing the natural gas tax is a win for our economy, a win for our natural security, and a win for our environment.
    “As part of establishing this tax, the Democrats’ so-called ‘Inflation Reduction Act’ ordered the EPA to revise its subpart W requirements in order to facilitate the reporting and calculation of the tax.
    “The EPA subpart W revisions blatantly disregard and overstep even the partisan mandates of the IRA, and would excessively increase the tax burden on American energy under this natural gas tax. The revised emission factors with its subpart W reporting requirements make broad assumptions about oil and gas operations and technology that will lead to inaccurate reporting for many owners and operators.
    “The rule would not only radically expand the scope of emissions required to be reported by each facility under the greenhouse gas reporting program, but it also excessively expands the number of facilities that are covered by subpart W, and consequently, responsible to pay the natural gas tax.
    “Due to this uninformed and artificial overestimate of U.S. methane emissions, some smaller operators, who were once below the waste emissions threshold, are now at risk of seeing their reported methane emissions inflated, and owe large sums under the natural gas tax. If not repealed, this rule will arbitrarily increase the cost and burden of reporting under subpart W, motivated by the Democrats’ interest in growing the revenues generated by their natural gas tax.
    “This will make it even more difficult and expensive to produce, transport, and consume American natural gas, and in turn, will hurt both American families who rely on the energy, and the environment of the communities that we live.
    “It’s important that we note that our efforts today works in tandem with this Chamber’s recently passed budget resolution. As Chairman of the Environment and Public Works Committee, I have long intended to stop the natural gas tax, and we will continue to pursue this through the reconciliation process.
    “Today’s vote on the CRA provides all senators the opportunity to put our vote on record after witnessing the Biden EPA’s bait and switch on the implementation of this misguided policy.
    “I encourage my colleagues to support the CRA that is central to our mission of American energy dominance, and rejects this tax that will bolster our adversaries, increase energy costs on American families, and put our energy future at risk.”

    MIL OSI USA News –

  • MIL-OSI: Ninepoint Partners Announces Final February 2025 Cash Distribution for Ninepoint Cash Management Fund – ETF Series

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Feb. 27, 2025 (GLOBE NEWSWIRE) — Ninepoint Partners LP (“Ninepoint Partners”) today announced the final February 2025 cash distribution for the Ninepoint Cash Management Fund – ETF Series. The record date for the distribution is February 28, 2025. This distribution is payable on March 7, 2025.

    The per-unit final February 2025 distribution is detailed below:

    Ninepoint ETF Series Ticker Cash Distribution per
    unit    		 Notional Distribution
    per unit    		 CUSIP
    Ninepoint Cash
    Management Fund    		 NSAV $0.12085 $0.00000 65443X105


    About Ninepoint Partners

    Based in Toronto, Ninepoint Partners LP is one of Canada’s leading alternative investment management firms overseeing approximately $7 billion in assets under management and institutional contracts. Committed to helping investors explore innovative investment solutions that have the potential to enhance returns and manage portfolio risk, Ninepoint offers a diverse set of alternative strategies spanning Equities, Fixed Income, Alternative Income, Real Assets, F/X and Digital Assets.

    For more information on Ninepoint Partners LP, please visit www.ninepoint.com or for inquiries regarding the offering, please contact us at (416) 943-6707 or (866) 299-9906 or invest@ninepoint.com.

    Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.

    Please note that distribution factors (breakdown between income, capital gains and return of capital) can only be calculated when a fund has reached its year-end. Distribution information should not be relied upon for income tax reporting purposes as this is only a component of total distributions for the year. For accurate distribution amounts for the purpose of filing an income tax return, please refer to the appropriate T3/T5 slips for that particular taxation year. Please refer to the prospectus or offering memorandum of each Fund for details of the Fund’s distribution policy.

    The payment of distributions and distribution breakdown, if applicable, is not guaranteed and may fluctuate. The payment of distributions should not be confused with a Fund’s performance, rate of return, or yield. If distributions paid by the Fund are greater than the performance of the Fund, then an investor’s original investment will shrink. Distributions paid as a result of capital gains realized by a Fund and income and dividends earned by a Fund are taxable in the year they are paid. An investor’s adjusted cost base will be reduced by the amount of any returns of capital. If an investor’s adjusted cost base goes below zero, then capital gains tax will have to be paid on the amount below zero.

    Sales Inquiries:

    Ninepoint Partners LP
    Neil Ross
    416-945-6227
    nross@ninepoint.com

    The MIL Network –

  • MIL-OSI USA: Wyden, Merkley, Colleagues Press Feds on Threat of Rising Housing Costs from Plan to Reprivatize Fannie Mae and Freddie Mac

    US Senate News:

    Source: United States Senator Ron Wyden (D-Ore)

    February 27, 2025

    Oregon senators: Privatization a giveaway for hedge funds, wealthy investors; could hurt homebuyers

    Washington D.C.—U.S. Senators Ron Wyden and Jeff Merkley said today they have joined Senate colleagues to press the Department of Housing and Urban Development on whether its plan to reprivatize Fannie Mae and Freddie Mac will make mortgages more expensive. 

    “During your confirmation process, you repeatedly spoke of the desire to reduce housing costs, a goal we share. However, right out of the gate, you are actively advocating for policy changes that would likely raise housing costs for hard working Americans,” the senators wrote HUD Secretary Scott Turner, who said right after his confirmation that he would act as “quarterback” in the Trump Administration’s plan to reprivatize the multi-trillion dollar companies.

    “Changes to the ownership of Fannie Mae and Freddie Mac would be a monumental undertaking that would affect our entire housing system and touch the lives of homeowners and renters across the country,” they wrote. “If mismanaged, ending the conservatorships and Treasury’s role with Fannie Mae and Freddie Mac could make mortgages more expensive, cut off access to mortgage credit, destroy many of the important reforms made over the past 16 years, and compromise our entire housing market and the broader U.S. economy.” 

    The senators also raised concerns that privatization could result in a taxpayer-funded giveaway worth billions for wealthy investors and hedge funds, quoting one investor’s optimism that “Trump and his team will get the job done.” The senators asked Turner to commit to ensuring that any changes to Fannie Mae and Freddie Mac will not result in higher rents or mortgage costs for Americans while rewarding hedge funds and the wealthy.

    “Our housing finance system is a complex, multi-trillion dollar market that touches the lives of every American family. It is critical that any effort to reprivatize Fannie Mac and Freddie Mac does not result in windfalls for wealthy investors while raising housing costs for American families. We look forward to your prompt and thorough reply on this urgent matter,” wrote the senators.

    The letter was led by U.S. Senator Elizabeth Warren, D-Mass., and Minority Leader Chuck Schumer, D-N.Y. In addition to Wyden and Merkley, the letter was also signed by Senators Richard Blumenthal, D-Conn., Lisa Blunt Rochester, D-Del., Cory Booker, D-N.J., Dick Durbin D-Ill., Andy Kim, D-N.J., Chris Murphy, D-Conn., and Jack Reed, D-R.I. 

    The full text of the letter is here.

    MIL OSI USA News –

  • MIL-OSI USA: Warner, Thune, Malliotakis & Peters Introduce Legislation to Address Student Debt Crisis

    US Senate News:

    Source: United States Senator for Commonwealth of Virginia Mark R Warner

    WASHINGTON – Today, U.S. Sens. Mark R. Warner (D-VA) and John Thune (R-SD), alongside U.S. Reps. Nicole Malliotakis (R-NY-11) and Scott Peters (D-CA-50), introduced the Employer Participation in Repayment Act – bipartisan legislation to help Americans tackle their student loan debt by making permanent a provision that allows employers to contribute up to $5,250 tax-free to their employees’ student loans.

    In 2020, Sens. Warner and Thune along with Rep. Peters negotiated the inclusion of a provision in the CARES Act that allowed these contributions temporarily. Later that year, as part of the government spending package, they secured an extension allowing this benefit until January 1, 2026. By making this tax benefit permanent, today’s legislation would provide employees with much-needed relief and employers with a unique and permanent tool to attract and retain talented employees.

    “As the first in my family to graduate from college, I wouldn’t have been able to afford my tuition without the help of student loans,” said Sen. Warner. “Unfortunately as the cost of higher education continues to skyrocket, so has the rate of Americans who turn to student loans to pay for college. Today too many Americans are saddled with tough-to-manage student loan debt, with no end in sight. That’s why I’ve teamed up with Sen. Thune to create an innovative, bipartisan approach to help ease the burden of student loans. By making employer student loan repayments tax-exempt, employers will have a tool to recruit and retain a talented workforce while also helping working Americans manage their financial future.”

    “Incentivizing employers to help repay their employees’ student loans was a common-sense step Congress took to address the high levels of student debt that borrowers face,” said Sen. Thune. “This bill would permanently equip employers with this unique tool to help attract and retain talented employees while protecting American taxpayers from costly burdens. This is a win-win for graduates and their employers, and I hope it will once again garner strong, bipartisan support.”

    “Over the past 20 years, the cost to attend college has risen 45 percent, forcing students to choose between pursuing higher education and taking on tens of thousands of dollars in burdensome student loan debt,” said Rep. Malliotakis. “Our bipartisan legislation enables employers to contribute up to $5,250 per year, tax-free, toward their employees’ student loans—helping those entering the workforce pay down debt faster and build a stronger financial future. This tax incentive will continue to strengthen our workforce, increase our nation’s competitiveness, and provide much-needed economic relief to millions of Americans.”

    “I relied on student loans to get through college when the cost of higher education was much lower than it is today. Now, the collective debt among Americans is $1.7 trillion, which limits our economic growth and the economic prospects of young adults,” said Rep. Peters. “Over the last five years, this program has been a huge success — employers have helped pay off thousands of employees’ loans and it gave employers a tool to compete for the best talent. This public-private collaboration has proven itself as a cost-effective solution to the student debt crisis and it is imperative that we make it permanent.” 

    Americans owe a combined $1.77 trillion dollars in student loan debt, according to the most recent quarterly report from the Federal Reserve. This debt is a significant financial burden that not only influences the way the American workforce saves and spends, but also has a stifling effect on the economy. This legislation would update an existing federal program so that it works better for employees living with the reality of burdensome student loan debt.

    The legislation has support from numerous educational organizations and business groups.

    “The National Association of Independent Colleges and Universities (NAICU) is pleased to support bipartisan legislation that would make permanent the expansion of IRC Sec. 127. This expansion to allow student loan repayment assistance should absolutely be a permanent benefit and not expire next year as currently scheduled.  This assistance helps working students, employers, and ultimately the U.S. economy. Section 127 benefits play a critical role in maintaining U.S. competitiveness and preventing the accumulation of student debt by enabling employers to fund the training, development and education of their employees, without imposing tax burdens on those employees for the education they receive.  Employees use these benefits to pursue their educational and career goals and use amounts provided by their employer to either help pay for the cost of tuition or repay student loans,” said Karin Johns, Director of Tax Policy, National Association of Independent Colleges and Universities.

    “The bipartisan and bicameral Employer Participation in Repayment Act will reduce borrowers’ student loan burdens and encourage successful repayment. In turn, it gives employers a permanent tool with which to attract a stable workforce. EFC is proud to endorse this legislation, and we look forward to collaborating with you to advance public policies that appropriately balance the interests of student loan borrowers, employers, and taxpayers,” said Gail daMota, President, Education Finance Council.

    “The U.S. Chamber supports the Employer Participation in Repayment Act because it allows employers voluntarily to provide a valued employee benefit that helps their employees’ financial well-being,” said Chantel Sheaks, Vice President, Retirement Policy, U.S. Chamber of Commerce

    “Candidly has facilitated more than $100M in tax-free Student Loan Employer Contributions to help employees pay down their debt faster, as a workplace benefit, resulting in a whopping 67% reduction in turnover across participating workers. Permanency is crucial to sustaining and scaling this highly efficacious new category of benefit into a new normal,” said Laurel Taylor, CEO, Candidly.

    “Fidelity Investments commends the bipartisan re-introduction of the Employer Participation in Repayment Act. Permanently extending this important incentive is critical to the American workforce’s financial wellness. As a market leader for student debt workplace benefits since 2016, Fidelity has enabled hundreds of employers across a wide range of industries to seamlessly contribute to and ease the student debt burden for their employees. To date, these employers have helped more than 100k employees save more than $500mn and an average of 3-4 years in payments. The growth and popularity of these benefits have accelerated since the introduction of this provision as part of the 2020 CARES Act, and we look forward to working with Congress to enact this legislation permanently into law,” said Jesse Moore, Senior Vice President, Head of Student Debt at Fidelity Investments.

    “We commend Senators Thune and Warner, along with Representatives Malliotakis and Peters, for their leadership in introducing the Employer Participation in Repayment Act. Making the student loan repayment expansion permanent is a critical step toward easing the financial burden on millions of Americans while empowering businesses to attract and retain top talent. This bipartisan, bicameral effort underscores a shared commitment to workforce development, economic growth, and financial well-being for employees nationwide. We urge Congress to pass this legislation and ensure long-term support for student loan repayment benefits,” said Chatrane Birbal, Vice President of Policy and Government Relations at the HR Policy Association. 

    “SHRM strongly supports the reintroduction of the Employer Participation in Repayment Act, a bipartisan bill that would permanently allow employers to assist employees in repaying their student loans. At SHRM, we have long championed policies that empower employers to provide education assistance programs that align with the evolving needs of the workforce. This legislation is key to strengthening the education-to-employment pipeline—ensuring that individuals can pursue and complete their education without being burdened by overwhelming debt, while also helping employers build a skilled and competitive workforce. This legislation provides a commonsense solution that would benefit workers, workplaces, and the economy,” said Emily M. Dickens, Chief of Staff and Head of Government Affairs at the Society for Human Resource Management.

    “We commend the introduction of bipartisan legislation to permanently extend the student loan repayment benefit under Section 127. Supporting efforts by employers to offer education or debt relief to their employees is both economically and fiscally responsible. This bill is a crucial step towards modernizing Section 127 of the tax code, addressing the evolving needs of employees, and ensuring our workforce remains competitive. InStride is dedicated to reducing the burden of student debt and expanding economic opportunities through innovative employer-sponsored education programs. This legislative effort aligns with our mission and helps create a more financially resilient workforce,” said Craig Maloney, CEO, InStride.

    “The National Association of REALTORS ® (NAR) has long supported efforts to ease the burden of student loan debt. The Employer Participation in Repayment Act is a useful tool in easing the weight of student debt. NAR applauds the leadership from Representatives Peters and Malliotakis and Senators Warner and Thune in making this change permanent. This legislation creates a win-win for both employers in search of attracting and maintaining talented workers and employees who will receive relief on their debt, enabling them to save money for important life decisions like purchasing a home,” said National Association of Realtors® President Kevin Sears.

    “Extending the tax exclusion for employer-provided student loan repayment assistance is crucial for today’s U.S. workforce and is 100% aligned with employer perspectives on these benefits,” said Scott Thompson, CEO of Tuition.io. “As the cost of higher education continues to skyrocket, this benefit enables companies to foster a more educated and skilled workforce, while helping their employees cover basic living expenses, a challenge for so many people today. Since Tuition.io started administering contributions in 2016, employers on our platform have helped pay down student loan debt for hundreds of thousands of employees in key sectors like healthcare, manufacturing, and technology. We at Tuition.io strongly support making these benefits under Section 127 permanent, as their removal would be a significant setback for both corporations and their employees.”

    “The introduction of this bill is a huge step in the right direction and, when passed, will be a major win for companies, employees, and society at large. Tax-free employer contributions to student loans is a great way to help employees pay back student loans while providing a unique incentive for employees to align with company priorities. As the cost of education has and will likely continue to rise, this benefit will help alleviate the financial stress employees have incurred in order to gain employment. Permanently including employer student loan contributions under tax-free educational assistance will help pave the way for more employers to play a massive role in solving the student debt crisis,” said Mick MackLaverty, CEO of Highway Benefits.

    “We are proud to support this initiative and grateful to Congressmember Peters for his dedication to San Diego’s small businesses,” said Jessica Anderson, Interim President and CEO of the San Diego Regional Chamber of Commerce. “The Employer Participation in Repayment Act of 2025 will expand the benefits employers can offer by assisting with student debt repayment, in turn helping small businesses attract and retain talent in a competitive workforce. 

    Full text of the legislation can be found here. A summary of the legislation can be found here.

     

    MIL OSI USA News –

  • MIL-OSI Canada: B.C. will strengthen biofuel industry with Canadian-content requirements

    Source: Government of Canada regional news

    The Province is taking action to strengthen British Columbia’s energy resilience and support local biofuel producers, ensuring cleaner transportation fuels and greater energy security for people in B.C.

    “British Columbians deserve a reliable, sustainable and Canadian fuel supply,” said Adrian Dix, Minister of Energy and Climate Solutions. “By increasing the Canadian biofuel content in our transportation fuels, we will support local producers, protect jobs and reduce our dependence on foreign energy. This action reflects our commitment to cleaner energy, economic growth and a resilient future for British Columbians.”

    B.C. and Canadian biofuel producers have long felt the impact of the competitive advantage American producers have over Canadian producers because of U.S. subsidies, which have increased under the U.S. Inflation Reduction Act.

    To support B.C. and Canadian biofuel producers, protect local jobs throughout the supply chain and strengthen British Columbia’s energy security, the Province is making key amendments to regulations under the Low Carbon Fuels Act that prioritize the inclusion of Canadian biofuels in B.C.’s transportation fuels. This action will stabilize the biofuel market and support B.C. companies such as Tidewater Renewables in Prince George, Parkland in Burnaby and Consolidated Biofuels in Delta.

    “We welcome the Government of B.C.’s changes to the Low Carbon Fuels Act and the commitment to strengthen the Canadian biofuel sector,” said Jeremy Baines, president and CEO, Tidewater Renewables. “This is a good first step in levelling the playing field with imported biofuels that take advantage of overlapping foreign and Canadian policies, and moving toward an economically viable Canadian renewable fuel industry. Tidewater is committed to being a leader in the energy transition, continuing to develop made-in-B.C. energy solutions, creating good-paying jobs in British Columbia and continuing to supply low-carbon fuels, helping British Columbia and Canada meet emission-reduction targets.”

    Effective Jan. 1, 2026, the minimum 5% renewable-fuel requirement for gasoline must be met with eligible renewable fuels produced in Canada. The renewable-fuel requirement for diesel is 4% and will immediately be increased to 8%. Beginning April 1, 2025, the renewable content of diesel fuel must be produced in Canada.

    The Province has been working closely with B.C. biofuel producers and suppliers to develop an approach that supports the entire industry and limits price impacts. This aligns with the Province’s commitment to sustainability and competitiveness, balancing environmental goals with economic development, signalling B.C.’s leadership in advancing a cleaner and more resilient energy future.

    Quotes:

    Dan Treleaven, chief executive officer, Consolidated Biofuels Ltd. –

    “This news is welcome support for local homegrown biofuel producers. Securing and growing local production reduces reliance on imports, while maintaining one of the most progressive carbon-reduction programs in Canada.”

    Mark Zacharias, executive director, Clean Energy Canada –

    “We are pleased to see today’s amendments to the Low Carbon Fuels Regulation. These changes will provide certainty to B.C. and Canadian biofuel producers, while connecting the Canadian biofuel supply chain and supporting the province’s clean-energy economy. In the face of potential U.S. tariffs, these changes will create jobs here in B.C., while doing our part for the climate.”

    Learn More:

    British Columbia’s Low Carbon Fuel Standard:
    https://www2.gov.bc.ca/gov/content/industry/electricity-alternative-energy/transportation-energies/renewable-low-carbon-fuels

    A backgrounder follows.

    MIL OSI Canada News –

  • MIL-OSI New Zealand: Appointments – Greymouth accounting firm welcomes new associate

    Source: ASHTON WHEELANS

    A leading South Island accounting firm has strengthened its presence on the West Coast with the recruitment of Greymouth local Kimberley Costelloe as associate.

    A chartered accountant with more than 19 years’ industry experience, Kimberley recently joined Ashton Wheelans, which has offices in Greymouth, Christchurch, Rangiora and Wānaka.

    She has worked alongside clients across a wide range of industries, including property investment, winemaking, mining, farming, hair and beauty, tourism, hospitality, trades, primary industry and manufacturing.

    “The best part of being an accountant and business advisor is getting to know my clients, their business and forming great relationships with them,” she explains. “I enjoy hearing their wins, challenges and aspirations. This also means I can keep my ear to the ground for emerging developments: legislative, technology and any opportunities that may arise and have an impact on their business.”

    Kimberley says she is delighted to work within a diverse team across the South Island, while still living in her hometown.

    “Ashton Wheelans has a wide network of experience, with a well-established and knowledgeable team,” she says. “Having the ability to tap into this level of expertise and resources anytime is excellent as I like to work collaboratively with colleagues to assess the best approach.

    “Knowing that I have that type of support is extremely valuable, as it means we get the best outcomes for our clients,” she adds.

    Ashton Wheelans partner Fergal O’Gara says Kimberley brings a wealth of experience to the team, and our clients.

    “Kimberley’s down-to-earth nature enables her to connect with people of any age or background,” he says. “It is great to have her in our Greymouth-based team.”

    Kimberley is a multi-generational West Coaster and is involved in several local community groups, including Big Brothers Big Sisters Westland, Paroa Playcentre and Paroa Park Redevelopment Inc. Her professional career has seen her work in various accounting practices in Nelson and Christchurch, before returning home to the West Coast.

    Ashton Wheelans has a longstanding history and has been operating for more than 60 years to provide accounting, tax, audit and business advisory services throughout the South Island. In April 2024, Ashton Wheelans merged with the team at Greymouth’s Marshall & Heaphy to become the firm’s West Coast-based office.
     
    About Ashton Wheelans
    Ashton Wheelans is one of the South Island’s leading chartered accountancy firms with a 60-year history of helping business owners and individuals achieve their goals and financial success. With offices in Rangiora, Christchurch, Greymouth and Wānaka, Ashton Wheelans provides innovative and forward-thinking financial advice to drive growth and success, from accounting, tax and auditing expertise to specialist advice on acquisitions, startups, mentoring, restructuring or insolvency, succession and strategic planning.
    www.ashtonwheelans.co.nz

    MIL OSI New Zealand News –

  • MIL-OSI USA: Ricketts, Flood Introduce CRA Legislation to Overturn CFPB’s Regulatory Overreach of Consumer Payment Companies

    US Senate News:

    Source: United States Senator Pete Ricketts (Nebraska)
    WASHINGTON, D.C. – Today, U.S. Senator Pete Ricketts (R-NE) and U.S. Representative Mike Flood (R-NE-01) introduced a bicameral Congressional Review Act resolution to overturn the Consumer Financial Protection Bureau (CFPB)’s latest overreach in the digital consumer payment market. The legislation would nullify the CFPB’s burdensome “Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications” rule, which took effect on January 9, 2025.
    “Following their election loss, the Biden-Harris CFPB rushed an eleventh-hour rule to attack non-bank digital consumer payment applications,” said Senator Ricketts. “This one-size-fits-all solution in search of a problem unnecessarily expands the CFPB’s authority. Our legislation eliminates barriers to innovation, cuts red tape, and supports our job-creators. Thank you, Congressman Flood, for leading this common-sense effort in the House. I urge my colleagues to consider this legislation without delay.”
    “Over the last four years, progressive activists sought to dramatically expand the regulatory authority of the Consumer Financial Protection Bureau,” said Representative Flood. “One of the tools they used to achieve their goal was the Larger Participants Rule, which has attempted to leverage the agency’s examination authority to regulate non-bank consumer payments firms. Rolling back this regulation is critical to ensuring that the CFPB doesn’t become a barrier to innovation for job creators across America. Thank you to my colleagues in the House who are joining this effort and to Senator Ricketts for leading on this bicameral effort as well.”
    “Technology helps Americans of all backgrounds manage their financial lives. The CFPB’s rule doesn’t benefit consumers or the market, but it would stifle fintech innovation,” said Carl Holshouser, Executive Vice President of TechNet. “The final rule’s one-size-fits-all approach fails to follow applicable law, does not identify any specific consumer harm, and largely ignores stakeholder comments. Instead, the Bureau casts a wide net to turn itself into a general technology regulator instead of a financial one. TechNet is thankful to Representative Flood and Senator Ricketts for introducing this important resolution and looks forward to Congress rescinding the CFPB’s rule.”
    “The final rule was deeply flawed, failed to define a market or identify specific risks to consumers, and conflated diverse uses and products into a one-size-fits-all approach,” said Penny Lee, President and CEO of the Financial Technology Association. “This was an overreach by the CFPB as payment companies are well-regulated at the state and federal levels. We applaud Senator Pete Ricketts and Congressman Mike Flood in leading the Congressional Review Act process.”
    Bill text can be found here.
    BACKGROUND
    On November 21, 2024, the CFPB finalized a rule entitled “Defining Larger Participants of a Market for a General-Use Digital Consumer Payment Applications”— one of the Biden Administration’s many midnight rulemakings at the end of the year. Effective Jan. 9, 2025, the rule stretches CFPB’s powers to establish new supervision and examination authority over nonbank entities identified as “larger participants” in the general-use digital consumer payment applications market. These entities include payment apps, digital wallets, peer-to-peer payment apps, and other entities. “Larger participants” are entities that facilitate at least 50 million consumer payment transactions annually. Payment apps like Paypal or Venmo are examples.
    Many payment companies are already regulated at the federal and state level. Consumers are having positive experiences in engaging with these services. Despite minimal consumer complaints about payment services—accounting for only 1% of the CFPB’s 1.3 million complaints in 2023—the CFPB chose to layer additional oversight on an already well-regulated industry.
    This one-size-fits-all solution in search of a problem expands CFPB’s authority without properly identifying a specific market it seeks to supervise or the risks within a specific market that pose harm to consumers that existing regulation doesn’t already mitigate. It will layer overreaching, duplicative regulation that could stifle innovation and lead to fewer services and increased costs.
    Further, the cost-benefit analysis supporting the rule is insufficient, unrealistic, and notably underestimates a CFPB exam to cost just $25,001.

    MIL OSI USA News –

  • MIL-OSI USA: ICYMI: Lummis Leads Inaugural Digital Asset Subcommittee Hearing, Lays Foundation for Commonsense Legislative Framework

    US Senate News:

    Source: United States Senator for Wyoming Cynthia Lummis

    February 27, 2025

    Washington, D.C. — U.S. Senator Cynthia Lummis (R-WY) led the inaugural Digital Assets Subcommittee hearing where witnesses expressed the need for Congress to provide a clear regulatory framework for digital assets to promote growth and maintain our nation’s reputation as a global leader in financial innovation.

    “We have come a long way since I was elected to the Senate in 2020, when many of the members of this body were still trying to wrap their heads around what a bitcoin is, what a stablecoin is, and why the Howey test is important,” said Lummis. “We are on the precipice of finally creating a bipartisan legislative framework for both stablecoins and market structure. I am hopeful that we can get both pieces of legislation to President Trump for his signature this year.”

    Members heard testimony from Lewis Cohen, a partner at Cahill, Gordon & Reindel; Jonathan Jachym, Deputy General Counsel and Global Head of Policy with Kraken Digital Asset Exchange; Jai Massari, Chief Legal Officer at Lightspark and Tim Massad, Research Fellow at Harvard University and former Chair of the Commodity Futures Trading Commission (CFTC) where they outlined the need for Congress to act swiftly to provide regulatory clarity.

    A full video of her remarks can be found here.

    MIL OSI USA News –

  • MIL-OSI Economics: IPAA, U.S. Chamber and 500+ Groups Urge Urge Congress to Permanently Extend Pro-Growth Tax Reforms

    Source: Independent Petroleum Association of America

    Headline: IPAA, U.S. Chamber and 500+ Groups Urge Urge Congress to Permanently Extend Pro-Growth Tax Reforms

    Feb 27, 2025 IPAA, U.S. Chamber and 500+ Groups Urge Urge Congress to Permanently Extend Pro-Growth Tax Reforms

    To Members of the United States Congress:

    The undersigned organizations support extending pro-growth tax policies that have raised workers’ wages, helped families weather inflation, and led to more well-paying jobs. The individual, business, and estate tax provisions of the 2017 Tax Cuts and Jobs Act (“TCJA”) have been instrumental in helping achieve these goals and should be made permanent.

    As lawmakers contemplate advancing tax reform legislation through budget reconciliation this year, the importance of adopting the appropriate budget baseline cannot be overstated. We believe it is imperative that Congress adopt a current-policy baseline.

    Adopting a current-policy baseline would avoid a $4 trillion dollar tax increase on American families and employers by creating a pathway for Congress to make the TCJA permanent. Doing so would provide businesses the certainty and stability they need to make the long-term investments that drive growth, accelerate productivity, and increase prosperity across all segments of the economy. …

    Continue Reading

    MIL OSI Economics –

  • MIL-OSI USA: Lee and Roy Introduce HERO Act for 119th Congress

    US Senate News:

    Source: United States Senator for Utah Mike Lee
    WASHINGTON – Sen. Mike Lee (R-UT) introduced the Higher Education Reform and Opportunity (HERO) Act, a bill that brings transparency, accountability, and competition to higher education. Rep. Chip Roy (R-TX) sponsored the HERO Act in the House of Representatives.
    The HERO Act aims to simplify federal student loans by offering a single option and introduces a new financial “skin-in-the-game” requirement for universities. Under this requirement, universities will be rewarded for each Pell Grant graduate but will also be obliged to repay a percentage of the total loans issued, with consideration for loan default rates and the average national unemployment rate.  
    Moreover, the bill empowers states to establish alternative accreditation systems that can accredit any postsecondary institution offering programs applicable to degrees, credentials, or professional certifications. This flexibility allows states to determine clock hour and minimum program length requirements, making short-term workforce development programs and nontraditional educational providers eligible for federal student aid.
    Additionally, the HERO Act mandates higher education institutions participating in federal student loan programs to publish relevant outcome information in an easily accessible format. This transparency provides students with the necessary information to make informed decisions about which institutions to attend.
    “Too often, our bright young minds needlessly face the unfair choice of either drowning in debt or sacrificing their dreams of higher education,” Sen. Lee said. “The HERO Act aims to alleviate the ever-increasing financial burden required of students pursuing their educational goals by capping loans that exacerbate costs. It would transform our educational landscape and allow students to tailor their unique learning journey and gain the skills needed to excel in today’s dynamic economy.”
    “Universities have largely become government-run crony rackets focused on turning students into far-left political activists rather than young adults prepared for success in the workforce,” Congressman Roy said. “Federal involvement has only made this problem worse. The HERO Act is an important first step to fix this and will require institutions of higher education to have some ‘skin in the game’ regarding their students’ outcomes, simplify the federal student loan system, and perhaps most important empower states to establish alternative accreditation systems. I look forward to working with my colleagues to get this across the finish line.” 
    For bill text, click HERE.For a two-pager, click HERE.

    MIL OSI USA News –

  • MIL-OSI: Quanta 100x’s Accountants with AI-Powered Innovation; Secures $4.7M in Funding Led by Accel to Alleviate Pain of Legacy Solutions

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, Feb. 27, 2025 (GLOBE NEWSWIRE) — Quanta, the next-generation accounting company powered by AI, today announced the general availability of its platform featuring an intuitive self-serve onboarding process that accomplishes in minutes what typically takes weeks with other solutions. Quanta also raised $4.7 million in seed funding led by Accel with participation from basecase, Comma Capital, Designer Fund, and Operator Collective, as well as prominent angel investors including Elad Gil. This round propels Quanta’s vision of eliminating all non-creative accounting work in order to empower businesses with financial clarity in real-time.

    Software companies are on the leading edge of innovation. However, their accounting services have not kept pace. Many organizations face prolonged accounting close cycles, manual workflows, and delayed access to critical financial metrics — which often leaves business leaders to rely on stale or incomplete data that hinders timely decision-making. And other emerging accounting tools over recent years have not been able to utilize AI for automation that allows their business to successfully scale and serve customers’ need for real-time insights.

    “During my time as an engineer at Affirm, I built multiple financial systems of record — including its in-house accounting system — as the company scaled from 100 to 2,500 employees. I saw firsthand how far behind accounting software lagged,” said Helen Hastings, founder and CEO of Quanta. “The manual work required to produce data has resulted in a once-per-month reporting cadence that holds businesses back. Quanta’s vision is to automate all repetitive aspects of accounting, so finance teams need only focus on creative work: defining the business model, selecting the appropriate policies, and asking the right questions that will push their business forward. Quanta isn’t just an accounting firm; it’s an exponential upgrade to organizations’ financial operations.”

    Quanta developed its own proprietary general ledger and granular subledgers, which, when integrated with its AI-powered engine, automates data population, validation, and interpretation. With this approach, Quanta alleviates the pain of traditional solutions and “100x’s” its accountants — delivering the fastest, most accurate, and easiest to work with service on the market.

    “The accounting industry is at a critical juncture where new solutions are required to meet modern demands. AI breakthroughs and the consolidation of financial data in modern cloud services create a unique opportunity for innovation, and Quanta is perfectly positioned to harness it,” said Amit Kumar, partner at Accel. “Helen and the Quanta team are building a system that represents a radical departure from the status quo, delivering a new model of real-time delivery and unparalleled accuracy. I’m excited to join them on their journey to raise the bar for what modern businesses should expect from their accounting services.”

    Quanta delivers:

    • Speed and real-time insights: Powered by proprietary accounting software, Quanta updates in real-time through integrations with customers’ banking systems and existing stack of financial tools including Brex, Gusto, Mercury, Ramp, Stripe, and more. This enables seamless onboarding and unmatched speed compared to competitors relying on manual processes and outsourced bookkeepers.
    • Unparalleled accuracy: Quanta’s automated validation system ensures all accounting entries comply with each customer’s set policies, and is supported by 40+ daily checks and reconciliations to ensure balances match with source financial tools.
    • Advanced revenue and accrual functionality: Native tools, including a Stripe integration and contract ingestion system that automates revenue recognition across multiple sources in addition to an accrual system that automatically builds schedules for prepaids and fixed assets. This provides business leaders with greater accuracy, transparency, and efficiency in financial reporting by providing more granular and contextual accounting while reducing manual effort and human error.
    • Highest quality human service: Each customer is paired with a dedicated financial expert via Slack, offering high-level strategic and creative guidance to drive key business decisions — only made possible due to the automation of routine bookkeeping tasks.

    “Quanta is the fastest outsourced accounting service. The efficiency gains since partnering with Quanta have been remarkable. They’ve helped us reduce our closing time by 85%, giving us visibility into our business faster,” said Chris Burgner, Head of Finance & Analytics at Equals. “Now, any time we need to see financial performance, we trust Quanta’s platform reflects the most up-to-date, accurate information. Even more, it is a relief to have them as a thought partner to help lay the right foundation for the future in the ever-changing world of accounting requirements.”

    Supporting Resources

    About Quanta
    Quanta is the AI-powered accounting service for software businesses who want to get their finances right, without delay. Through native integrations with leading financial tools and banking providers, Quanta provides unparalleled access to key business metrics in real-time — giving customers an accurate view of their finances and empowering them with the knowledge they need to make critical business decisions with lightning speed. Quanta is privately held, with funding from Accel, basecase, Comma Capital, Designer Fund, Operator Collective, and more. For more information, please visit https://www.usequanta.com/.

    The MIL Network –

  • MIL-OSI Video: More Support is Available

    Source: United States of America – Federal Government Departments (video statements)

    Recovery takes a team effort, and FEMA isn’t the only source of help. Many organizations are stepping up to support wildfire survivors.

    LA County 211 can help with food, housing assistance, income, employment and more.

    The American Red Cross can also provide financial assistance. And the Small Business Administration is offering low-interest loans to help survivors rebuild.

    To get a more detailed list of organizations that might be able to help…and to get the latest updates on debris removal, rebuilding, and even school operations, you can visit recovery.LACounty.gov. Don’t wait—take action today!

    https://www.youtube.com/watch?v=9B90JwbejmM

    MIL OSI Video –

  • MIL-OSI United Nations: Diverse disaster risks in the Arab States have led to inspiring solutions

    Source: UNISDR Disaster Risk Reduction

    SRSG Kamal Kishore visited Kuwait in February 2025 for the Arab Regional Platform for Disaster Risk Reduction. In this article he reflects on the region’s challenges and successes.
     

    The Arab States region is known for its extremes: some of the world’s harshest conditions, but also the famous hospitality of its inhabitants. It is home to some of the wealthiest nations, but also many amongst the least-developed. It faces serious disaster risks – especially slow onset disasters like drought and desertification – but is also a source of innovative solutions.

    I spent the past week in Kuwait where disaster risk management policy makers and practitioners from 22 countries from the Arab States region came together for the 6th Arab Regional Platform for Disaster Risk Reduction. This multi-stakeholder forum was called to take stock of progress against the Sendai Framework for Disaster Risk Reduction and devise ways to accelerate implementation over the next five years. Much of the success can be attributed to the generosity and professionalism of the host country, the State of Kuwait. The excellent organization of the Platform was the result of a tight partnership between the Kuwait Fire Force, the League of Arab States, and UNDRR’s Regional Office for Arab States, lining up a programme that covered a wide array of important topics for the region.

    During the five intense days of deliberations, I learned many things. In a region that is beset by many challenges, disaster risk reduction issues do not always spring to mind as the most urgent. However the region has seen some of the worst disasters over the last few years – including floods in Libya (2023), Oman (2024) and UAE (2024); earthquakes in Syria and Morocco (2023); and a string of severe droughts across much of the region.

    To say that the Arab States region is highly diverse is to state the obvious. However, this diversity goes beyond the nature of disaster risk (varying hazards, exposure, and socio-economic vulnerability) to the diverse institutional approaches adopted by countries of the region to manage disaster risk. The United Arab Emirates, in particular, have shown great leadership in the region, as champions of urban resilience and hosts of the COP28 UN Climate Change Conference.

    During the Regional Platform I had so many enlightening conversations – formal and informal – and participated in numerous events and discussions. Considering all that I learned, I have the following reflections:

    The next leap

    Most of the countries in the region have established strong national level institutions for disaster risk management (these are variously named Disaster Management Agencies, or Emergency, Crisis and Disaster Management Authorities, and so on) and many have developed multi-year strategies for disaster risk management (for example, Morocco has a strategy for 2020 to 2030).

    The next leap would be to pursue more integrative work with all development sectors. Interesting initiatives are already emanating from the region. For example: UNDRR’s Private Sector Alliance for Disaster Resilient Societies (ARISE) has helped develop and apply a resilience tool to aid the real estate sector in Dubai; and Libya and Iraq are modernizing the management of their irrigation dams.

    Play closer attention to compounding risks

    For example, sand and dust storms are getting more complex – in a region that has rapidly urbanized, not only are the impacts of these hazards evolving (such as the impacts on power transmission networks and renewable energy production), but these hazards are also combining with other threats such as soil and air pollution to create even bigger impacts.

    ABCD (Align Biodiversity, Climate Change and Desertification) of Comprehensive Risk Management 

    This is a region where on-the-ground integration of the three Rio Conventions – Biodiversity, Climate Change, and Desertification – really comes alive. However, taking such a comprehensive approach requires that we align all of these interests across regional, national and sub-national institutions.

    Blend tradition and innovation

    The region is home to centuries of traditional wisdom to deal with extreme conditions and natural hazards – for example, this can be seen in how traditional housing and clothing have evolved to combat extreme heat. Traditional systems of finance such as Islamic Finance (and the notion of Zakat) provide a solid foundation for society’s financial resilience, particularly for the poorest. At the same time, many countries in the region are at the forefront of cutting-edge innovation – from advances in water management to the application of AI.

    We can draw on both traditional wisdom and modern innovation to achieve disaster risk reduction objectives.

    The energy and enthusiasm I witnessed during this past week gives me a sense of optimism that if we stay the course, this region can not only demonstrate on-the-ground disaster risk reduction results, but can also inspire action across the world.

    The Global Platform for Disaster Risk Reduction, in June this year, will give an opportunity for all of the regions to share the outcomes of the Regional Platforms, and I look forward to the contributions arising from the Arab States Regional Platform.

    MIL OSI United Nations News –

  • MIL-OSI USA: NASA Installs Heat Shield on First Private Spacecraft Bound for Venus

    Source: NASA

    Engineers at NASA’s Ames Research Center in California’s Silicon Valley, Bohdan Wesely, right, and Eli Hiss, left, complete a fit check of the two halves of a space capsule that will study the clouds of Venus for signs of life.
    Led by Rocket Lab of Long Beach, California, and their partners at the Massachusetts Institute of Technology in Cambridge, Rocket Lab’s Venus mission will be the first private mission to the planet.
    NASA’s role is to help the commercial space endeavor succeed by providing expertise in thermal protection of small spacecraft. Invented at Ames, NASA’s Heatshield for Extreme Entry Environment Technology (HEEET) – the brown, textured material covering the bottom of the capsule in this photo – is a woven heat shield designed to protect spacecraft from temperatures up to 4,500 degrees Fahrenheit. The probe will deploy from Rocket Lab’s Photon spacecraft bus, taking measurements as it descends through the planet’s atmosphere.
    Teams at Ames work with private companies, like Rocket Lab, to turn NASA materials into solutions such as the heat shield tailor-made for this spacecraft destined for Venus, supporting growth of the new space economy. NASA’s Small Spacecraft Technology program, part of the agency’s Space Technology Mission Directorate, supported development of the heat shield for Rocket Lab’s Venus mission.

    MIL OSI USA News –

  • MIL-OSI USA: Luján, Ernst Introduce Bipartisan, Bicameral Legislation to Bolster Local Meat Processing Capacity, Support Local Producers

    US Senate News:

    Source: US Senator for New Mexico Ben Ray Luján

    Washington, D.C. – Today, U.S. Senators Ben Ray Luján (D-N.M.) and Joni Ernst (R-Iowa), members of the Senate Agriculture Committee, introduced the bipartisan, bicameral Expanding Local Meat Processing Act, legislation that would remove regulatory roadblocks to increase meat processing capacity and allow livestock auction market owners to invest in small and regional packing facilities. U.S. Representatives Mark Alford (R-Mo.), Jimmy Panetta (D-Ca.), and Dusty Johnson (R-SD) lead the companion legislation in the House.

    This legislation directs the Secretary of Agriculture to amend the Packers and Stockyards Act to allow livestock auction market owners to hold ownership in, finance, or participate in the management or operation of a meat packing entity with a cumulative slaughter capacity of less than 2,000 animals per day or 700,000 animals per year. This cap would exclude investment in the top 10 meat packers.

    Livestock auction markets, called marketing agencies selling on commission, are not currently able to own or invest, or participate in the management or operation of a packing plant or meat marketing business due to a Packers and Stockyards Act regulation. This legislation is essential in removing this unnecessary barrier in the cattle industry.

    “Lowering costs for New Mexicans and increasing competitiveness for local producers will support local economies and livelihoods – especially in our rural communities,” said Senator Luján. “I’m proud to partner with Senator Ernst to reintroduce this bipartisan legislation to remove outdated regulations that hinder producers’ ability to increase livestock processing capacity. This is a priority for New Mexico, and I will continue to advocate for it in the Farm Bill.”

    “Removing outdated regulations that hinder the livestock industry should be a no-brainer,” said Senator Ernst. “Allowing livestock auction markets to invest in small meat processing facilities will reduce market consolidation, decrease reliance on federal funding, and provide small producers with much-needed processing options. I’m proud to strengthen local food systems, increase competition, and ultimately lower meat costs for consumers through this effort.”

    “The A-PLUS Act will modernize livestock regulations to ensure government policy is consistent with our 21st Century marketplace,” said Rep. Alford. “For decades, restrictive rules have prevented smaller and local meat processors from competing for decades. By reforming these burdensome restrictions, we’re working to level the playing field, without sacrificing consumer safety. This commonsense legislation is a win for ranchers, auctions, consumers, and the entire livestock ecosystem. I’m proud to once again lead this bipartisan bill with my colleagues Congressmen Panetta and Johnson, as well as Senators Luján and Ernst.”

    “Congress and the cattle industry agree there is a need to increase the U.S. beef packing capacity and to add more competitors to the marketplace,” said Charlie Rogers Owner and General Manager of Clovis Livestock Auction. “We greatly appreciate Senator Luján introducing this bill to remove an outdated regulatory barrier and allow local livestock auction owners to be part of the solution investing in new local and regional packing capacity.”

    Full text of the legislation is available here. A one-pager of legislation is available here.

    MIL OSI USA News –