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MIL-OSI: Range Announces Fourth Quarter 2024 Results and Three-Year Outlook

Source: GlobeNewswire (MIL-OSI)

FORT WORTH, Texas, Feb. 25, 2025 (GLOBE NEWSWIRE) — RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its fourth quarter 2024 financial results, plans for 2025, and a three-year outlook through 2027.

Full-Year 2024 Highlights –

Cash flow from operating activities of $945 million
Cash flow from operations, before working capital changes, of $1.1 billion
Reduced net debt by $172 million, returned $77 million in dividends, and invested $65 million in share repurchases
Production averaged 2.18 Bcfe per day, approximately 68% natural gas
All-in capital spending of $654 million, or $0.82 per mcfe
Pre-hedge NGL realizations of $25.77 per barrel – premium of $2.33 over the Mont Belvieu equivalent
Proved reserves of 18.1 Tcfe with positive performance revisions for 17th consecutive year
Debt to EBITDAX of 1.2x (Non-GAAP) at year-end 2024
Expect to achieve Net Zero for 2024 Scope 1 and 2 GHG emissions
Maintenance capital improved by ~$50 million on strong well performance and infrastructure optimization

Dennis Degner, the Company’s CEO, commented, “Last year demonstrated the resilience of Range’s business as we successfully generated free cash flow, returned capital to shareholders and met our long-term balance sheet target. We did this despite natural gas prices being at cycle lows and while strategically investing in the business. Over the last two years, Range has made countercyclical investments to build in-process well inventory, which supports our targeted, efficient production growth plans through 2027. Importantly, we have contracted natural gas transportation to support our plans and Range will utilize new NGL export capacity towards the same premium markets that have benefited Range shareholders for many years.

An exciting chapter for U.S. natural gas is materializing as export capacity is commissioned to meet growing global gas demand. As the lowest-cost, lowest-emissions natural gas basin in the country, we expect Appalachia will play a significant role to meet global gas needs over time. We believe Range will see an outsized benefit given our proven, high-quality Marcellus inventory with duration measured in decades, our access to markets with growing demand and our advantaged full-cycle cost structure that provides the foundation for delivering through-cycle returns for shareholders.”

2025 Capital and Production Guidance

Range’s 2025 all-in capital budget is expected to be $650 to $690 million, which consists of:

Approximately $530 million of all-in maintenance capital including land and facilities
$70 – $100 million drilling and completion capital for future growth
Up to $30 million on targeted acreage which increases planned lateral lengths and future inventory
Approximately $20 – $30 million for pneumatic devices and facility upgrades

Range’s development plan for 2025 will target annual production of approximately 2.2 Bcfe per day. Consistent with 2024, Range plans to run two drilling rigs and one frac crew resulting in modest production growth in 2025 while building additional in-process well inventory for increased growth capacity in 2026 and 2027. Up to $30 million is planned for investment in non-maintenance acreage to support increased lateral lengths and incremental inventory. Approximately $20 – $30 million is planned for pneumatic devices and production facility upgrades, part of a $50 – $60 million project expected to be completed by year-end 2026 to further reduce emissions, with $10 million of the total project already completed in 2024.

The table below summarizes 2024 activity and expected 2025 plans regarding the number of wells to sales in each area. To maintain current production levels, Range will turn to sales approximately 600,000 lateral feet in a year.

	Planned Wells TIL in 2025	Wells TIL in 2024
	Planned Wells TIL in 2025	Wells TIL in 2024
SW PA Super-Rich	14	9
SW PA Wet	23	21
SW PA Dry	5	12
NE PA Dry	4	2
Total Appalachia	46	44

Three-Year Outlook

Range’s three-year outlook targets a 2027 daily production level of 2.6 Bcfe, an increase of approximately 400 Mmcfe per day compared to 2024, with annual estimated capital expenditures ranging between $650 to $700 million over the next three years. Annual capital spending is expected to represent a reinvestment rate below 50%, assuming $3.75 natural gas. Through 2027, Range expects to have maintained its 30+ years of core Marcellus inventory to support additional growth and meet future demand. Alternatively, at the end of this production profile, Range could maintain 2.6 Bcfe per day of production with approximately $570 million of annual drilling and completion capital, the equivalent of approximately $0.60 per mcfe.

Marketing and Transportation Update

Supporting Range’s planned production, the Company has secured the following incremental transportation, processing, and export capacity, all of which are expected to start in 2026:

300 Mmcf per day of processing capacity at the Harmon Creek facility
250 Mmcf per day of gas transportation, accessing expected demand growth in Midwest and Gulf Coast markets
20,000 bbl per day of NGL takeaway and export capacity utilizing a new East Coast terminal

Financial Discussion

Except for generally accepted accounting principles (“GAAP”) reported amounts, specific expense categories exclude non-cash impairments, unrealized mark-to-market adjustment on derivatives, non-cash stock compensation and other items shown separately on the attached tables. “Unit costs” as used in this release are composed of direct operating, transportation, gathering, processing and compression, taxes other than income, general and administrative, interest and depletion, depreciation and amortization costs divided by production. See “Non-GAAP Financial Measures” for a definition of non-GAAP financial measures and the accompanying tables that reconcile each non-GAAP measure to its most directly comparable GAAP financial measure.

Fourth Quarter 2024 Results

GAAP revenues and other income for fourth quarter 2024 totaled $626 million, GAAP net cash provided from operating activities (including changes in working capital) was $218 million, and GAAP net income was $95 million ($0.39 per diluted share). Fourth quarter earnings results include a $54 million mark-to-market derivative loss due to increases in commodity prices.

Cash flow from operations before changes in working capital, a non-GAAP measure, was $312 million. Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $164 million ($0.68 per diluted share) in fourth quarter 2024.

The following table details Range’s fourth quarter 2024 unit costs per mcfe^(a):

Expenses	4Q 2024 (per mcfe)	4Q 2023 (per mcfe)	Increase (Decrease)

Direct operating ^(a)	$ 0.12	$ 0.11	9%
Transportation, gathering, processing and compression ^(a)	1.48	1.39	6%
Taxes other than income	0.03	0.02	50%
General and administrative ^(a)	0.18	0.17	6%
Interest expense ^(a)	0.14	0.14	0%
Total cash unit costs ^(b)	1.94	1.83	6%
Depletion, depreciation and amortization (DD&A)	0.46	0.45	2%
Total unit costs plus DD&A^(b)	$ 2.40	$ 2.28	5%

(a) Excludes stock-based compensation, one-time settlements, and amortization of deferred financing costs.
(b) Totals may not be exact due to rounding.

The following table details Range’s average production and realized pricing for fourth quarter 2024^(a):

	4Q24 Production & Realized Pricing
	Natural Gas (mcf)	Oil (bbl)	NGLs (bbl)	Natural Gas Equivalent (mcfe)


Net production per day	1,505,140	5,028	111,199	2,202,500

Average NYMEX price	$ 2.80	$70.28	$ 24.47
Differential, including basis hedging	(0.44)	(10.64)	1.96
Realized prices before NYMEX hedges	2.36	59.64	26.43	3.08
Settled NYMEX hedges	0.54	11.01	0.04	0.40
Average realized prices after hedges	$ 2.90	$ 70.66	$ 26.47	$ 3.48

(a) Totals may not be exact due to rounding

Fourth quarter 2024 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements) averaged $3.48 per mcfe.

The average natural gas price, including the impact of basis hedging, was $2.36 per mcf, or a ($0.44) per mcf differential to NYMEX. In 2025, Range expects its natural gas differential to be ($0.40) to ($0.48) relative to NYMEX.
Range’s pre-hedge NGL price during the quarter was $26.43 per barrel, approximately $1.96 above the Mont Belvieu weighted equivalent. Range’s 2025 NGL differential is expected to be +$0.00 to +$1.25 relative to a Mont Belvieu equivalent barrel.
Crude oil and condensate price realizations, before realized hedges, averaged $59.64 per barrel, or $10.64 below WTI (West Texas Intermediate). Range’s 2025 condensate differential is expected to be ($10.00) to ($15.00) relative to NYMEX.

Capital Expenditures

Fourth quarter 2024 drilling and completion expenditures were $124 million. In addition, during the quarter, approximately $29 million was invested in acreage leasehold, gathering systems and other. Total 2024 capital budget expenditures were $654 million, including $580 million on drilling and completion, and a combined $74 million on acreage, gathering systems, pneumatic upgrades and other.

Financial Position and Repurchase Activity

As of December 31, 2024, Range had net debt outstanding of approximately $1.40 billion, consisting of $1.71 billion of senior notes and $304 million in cash. During the fourth quarter, Range repurchased in the open market $9.4 million principal amount of 4.875% senior notes due 2025 at a discount.

During the fourth quarter, Range repurchased 650,000 shares at an average price of approximately $32.50. As of year-end, the Company had approximately $1.0 billion of availability under the share repurchase program.

Range’s Board of Directors expects to approve a 12.5% increase to the quarterly cash dividend to $0.09 per share of the Company’s common stock. Details regarding the record and payment dates for quarterly dividends will be announced as each quarterly dividend is formally declared by the Board.

2024 Proved Reserves

Year-end 2024 reserves were similar to last year at 18.1 Tcfe, despite natural gas prices of $2.13 per Mmbtu, reflecting the resilience of Range’s low-cost asset base. Range also recorded its 17^th consecutive year of positive performance revisions driven by continued strong results from existing Marcellus producing wells. Proved reserves included 6.2 Tcfe of proved undeveloped reserves from approximately 2.9 million lateral feet scheduled to be developed within the next five years at an expected development cost of $0.38 per mcfe. Proved undeveloped reserves represents approximately 10% of Range’s undeveloped core Marcellus inventory.

Summary of Changes in Proved Reserves
(in Bcfe)
Balance at December 31, 2023	18,113

Extensions, discoveries and additions	749
Performance revisions	77
Price revisions	(1)
Sales	(11)
Production	(796)

Balance at December 31, 2024	18,131

As shown in the table below, the present value (PV₁₀) of reserves under SEC methodology was $5.5 billion. For comparison, the PV₁₀ using December 31, 2024 strip prices equates to $12.2 billion using the same proven reserve volumes.

	2024 SEC Pricing ^(a)	Strip Price Average ^(b)

Natural Gas Price ($/MMBtu)	$2.13	$3.54
WTI Oil Price ($/Bbl)	$74.88	$63.62
NGL Price ($/Bbl)	$24.40	$25.21

Proved Reserves PV₁₀($ billions)	$5.5	$12.2

a) SEC benchmark prices adjusted for energy content, quality and basis differentials were $1.74 per mcf and $63.39 per barrel of crude oil.
b) NYMEX 10-year strip prices adjusted for energy content, quality and basis differentials realized an average gas price differential of ($0.47) and an average realized oil differential of ($12.39) per barrel, which equate to $3.07 per mcf and $51.23 per barrel over the life of the reserves.

Guidance – 2025

Capital & Production Guidance

Range’s 2025 all-in capital budget is $650 million – $690 million. Annual production is expected to be approximately 2.2 Bcfe per day for 2025. Liquids are expected to be over 30% of production.

Full Year 2025 Expense Guidance

Direct operating expense:	$0.12 – $0.14 per mcfe
Transportation, gathering, processing and compression expense:	$1.50 – $1.55 per mcfe
Taxes other than income:	$0.03 – $0.04 per mcfe
Exploration expense:	$24 – $28 million
G&A expense:	$0.17 – $0.19 per mcfe
Net Interest expense:	$0.12 – $0.13 per mcfe
DD&A expense:	$0.45 – $0.46 per mcfe
Net brokered gas marketing expense:	$8 – $12 million

Full Year 2025 Price Guidance

Based on recent market indications, Range expects to average the following price differentials for its production in 2025.

FY 2025 Natural Gas:⁽¹⁾	NYMEX minus $0.40 to $0.48
FY 2025 Natural Gas Liquids:⁽²⁾	MB plus $0.00 to $1.25 per barrel
FY 2025 Oil/Condensate:	WTI minus $10.00 to $15.00

(1) Including basis hedging
(2) Mont Belvieu-equivalent pricing based on weighting of 53% ethane, 27% propane, 8% normal butane, 4% iso-butane and 8% natural gasoline.

Hedging Status

Range hedges portions of its expected future production volumes to increase the predictability of cash flow and maintain a strong, flexible financial position. Please see the detailed hedging schedule posted on the Range website under Investor Relations – Financial Information.

Range has also hedged basis across the Company’s numerous natural gas sales points to limit volatility between benchmark and regional prices. The combined fair value of natural gas basis hedges as of December 31, 2024, was a net loss of $29.2 million.

Conference Call Information

A conference call to review the financial results is scheduled on Wednesday, February 26 at 8:00 AM Central Time (9:00 AM Eastern Time). Please click here to pre-register for the conference call and obtain a dial in number with passcode.

A simultaneous webcast of the call may be accessed at www.rangeresources.com. The webcast will be archived for replay on the Company’s website until March 26^th.

Non-GAAP Financial Measures

To supplement the presentation of its financial results prepared in accordance with generally accepted accounting principles (GAAP), the Company’s earnings press release contains certain financial measures that are not presented in accordance with GAAP. Management believes certain non-GAAP measures may provide financial statement users with meaningful supplemental information for comparisons within the industry. These non-GAAP financial measures may include, but are not limited to Net Income, excluding certain items, Cash flow from operations before changes in working capital, realized prices, Net debt and Cash margin.

Adjusted net income comparable to analysts’ estimates as set forth in this release represents income or loss from operations before income taxes adjusted for certain non-cash items (detailed in the accompanying table) less income taxes. We believe adjusted net income comparable to analysts’ estimates is calculated on the same basis as analysts’ estimates and that many investors use this published research in making investment decisions and evaluating operational trends of the Company and its performance relative to other oil and gas producing companies. Diluted earnings per share (adjusted) as set forth in this release represents adjusted net income comparable to analysts’ estimates on a diluted per share basis. A table is included which reconciles income or loss from operations to adjusted net income comparable to analysts’ estimates and diluted earnings per share (adjusted). On its website, the Company provides additional comparative information on prior periods.

Cash flow from operations before changes in working capital represents net cash provided by operations before changes in working capital and exploration expense adjusted for certain non-cash compensation items. Cash flow from operations before changes in working capital (sometimes referred to as “adjusted cash flow”) is widely accepted by the investment community as a financial indicator of an oil and gas company’s ability to generate cash to internally fund exploration and development activities and to service debt. Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity. A table is included which reconciles net cash provided by operations to cash flow from operations before changes in working capital as used in this release. On its website, the Company provides additional comparative information on prior periods for cash flow, cash margins and non-GAAP earnings as used in this release.

The cash prices realized for oil and natural gas production, including the amounts realized on cash-settled derivatives and net of transportation, gathering, processing and compression expense, is a critical component in the Company’s performance tracked by investors and professional research analysts in valuing, comparing, rating and providing investment recommendations and forecasts of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Due to the GAAP disclosures of various derivative transactions and third-party transportation, gathering, processing and compression expense, such information is now reported in various lines of the income statement. The Company believes that it is important to furnish a table reflecting the details of the various components of each income statement line to better inform the reader of the details of each amount and provide a summary of the realized cash-settled amounts and third-party transportation, gathering, processing and compression expense, which were historically reported as natural gas, NGLs and oil sales. This information is intended to bridge the gap between various readers’ understanding and fully disclose the information needed.

Net debt is calculated as total debt less cash and cash equivalents. The Company believes this measure is helpful to investors and industry analysts who utilize Net debt for comparative purposes across the industry.

The Company discloses in this release the detailed components of many of the single line items shown in the GAAP financial statements included in the Company’s Annual or Quarterly Reports on Form 10-K or 10-Q. The Company believes that it is important to furnish this detail of the various components comprising each line of the Statements of Operations to better inform the reader of the details of each amount, the changes between periods and the effect on its financial results.

We believe that the presentation of PV₁₀ value of our proved reserves is a relevant and useful metric for our investors as supplemental disclosure to the standardized measure, or after-tax amount, because it presents the discounted future net cash flows attributable to our proved reserves before taking into account future corporate income taxes and our current tax structure. While the standardized measure is dependent on the unique tax situation of each company, PV₁₀ is based on prices and discount factors that are consistent for all companies. Because of this, PV₁₀ can be used within the industry and by credit and security analysts to evaluate estimated net cash flows from proved reserves on a more comparable basis.

RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused in the Appalachian Basin. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at www.rangeresources.com.

Included within this release are certain “forward-looking statements” within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are not limited to historical facts, but reflect Range’s current beliefs, expectations or intentions regarding future events. Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “outlook”, “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” and similar expressions are intended to identify such forward-looking statements.

All statements, except for statements of historical fact, made within regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as those regarding future well costs, expected asset sales, well productivity, future liquidity and financial resilience, anticipated exports and related financial impact, NGL market supply and demand, future commodity fundamentals and pricing, future capital efficiencies, future shareholder value, emerging plays, capital spending, anticipated drilling and completion activity, acreage prospectivity, expected pipeline utilization and future guidance information, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management’s assumptions and Range’s future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements. Further information on risks and uncertainties is available in Range’s filings with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K. Unless required by law, Range undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.

The SEC permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions as well as the option to disclose probable and possible reserves. Range has elected not to disclose its probable and possible reserves in its filings with the SEC. Range uses certain broader terms such as “resource potential,” “unrisked resource potential,” “unproved resource potential” or “upside” or other descriptions of volumes of resources potentially recoverable through additional drilling or recovery techniques that may include probable and possible reserves as defined by the SEC’s guidelines. Range has not attempted to distinguish probable and possible reserves from these broader classifications. The SEC’s rules prohibit us from including in filings with the SEC these broader classifications of reserves. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of actually being realized. Unproved resource potential refers to Range’s internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques and have not been reviewed by independent engineers. Unproved resource potential does not constitute reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System and does not include proved reserves. Area wide unproven resource potential has not been fully risked by Range’s management. “EUR”, or estimated ultimate recovery, refers to our management’s estimates of hydrocarbon quantities that may be recovered from a well completed as a producer in the area. These quantities may not necessarily constitute or represent reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System or the SEC’s oil and natural gas disclosure rules. Actual quantities that may be recovered from Range’s interests could differ substantially. Factors affecting ultimate recovery include the scope of Range’s drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, field spacing rules, recoveries of gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates and other factors. Estimates of resource potential may change significantly as development of our resource plays provides additional data.

In addition, our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price or drilling cost changes. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at www.rangeresources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K on the SEC’s website at www.sec.gov or by calling the SEC at 1-800-SEC-0330.

SOURCE: Range Resources Corporation

Range Investor Contacts:

Laith Sando
817-869-4267

Matt Schmid
817-869-1538

Range Media Contact:

Mark Windle
724-873-3223

RANGE RESOURCES CORPORATION


STATEMENTS OF INCOME
Based on GAAP reported earnings with additional
details of items included in each line in Form 10-K
(Unaudited, In thousands, except per share data)
	Three Months Ended December 31,								Twelve Months Ended December 31,
	2024			2023			%		2024			2023			%
Revenues and other income:
Natural gas, NGLs and oil sales (a)	$	635,122		$	603,279				$	2,213,850		$	2,334,661
Derivative fair value (loss) income		(53,804	)		291,059					56,726			821,154
Brokered natural gas and marketing		41,535			44,460					133,048			206,552
ARO settlement (loss) gain (b)		–			2					(26	)		1
Interest income (b)		3,144			1,921					12,651			5,937
Gain on sale of assets (b)		89			101					311			454
Other (b)		331			636					524			6,113
Total revenues and other income		626,417			941,458		-33	%		2,417,084			3,374,872		-28	%

Costs and expenses:
Direct operating		24,655			22,200					93,399			94,362
Direct operating – stock-based compensation (c)		468			443					1,922			1,723
Transportation, gathering, processing and compression		299,401			283,061					1,177,925			1,113,941
Taxes other than income		6,166			4,083					21,625			23,726
Brokered natural gas and marketing		41,655			44,319					138,080			200,789
Brokered natural gas and marketing – stock-based compensation (c)		603			491					2,465			2,095
Exploration		7,983			7,193					25,489			25,280
Exploration – stock-based compensation (c)		349			315					1,354			1,250
Abandonment and impairment of unproved properties		(201	)		2,051					8,417			46,359
General and administrative		35,485			34,472					133,303			127,838
General and administrative – stock-based compensation (c)		10,905			9,389					38,004			35,850
General and administrative – lawsuit settlements		91			114					782			1,052
General and administrative – bad debt expense		50			–					50			–
Exit costs		9,156			28,279					37,214			99,940
Deferred compensation plan (d)		3,878			(2,953	)				9,593			26,593
Interest expense		27,911			28,734					113,341			118,620
Interest expense – amortization of deferred financing costs (e)		1,357			1,352					5,417			5,384
(Gain) loss on early extinguishment of debt		(3	)		1					(257	)		(438	)
Depletion, depreciation and amortization		92,484			90,968					358,356			350,165
Total costs and expenses		562,393			554,512		1	%		2,166,479			2,274,529		-5	%

Income before income taxes		64,024			386,946		-83	%		250,605			1,100,343		-77	%

Income tax (benefit) expense
Current		2,902			(1,453	)				8,165			1,547
Deferred		(33,720	)		78,365					(23,900	)		227,654
		(30,818	)		76,912					(15,735	)		229,201

Net income	$	94,842		$	310,034		-69	%	$	266,340		$	871,142		-69	%


Net income Per Common Share
Basic	$	0.39		$	1.29				$	1.10		$	3.61
Diluted	$	0.39		$	1.27				$	1.09		$	3.57

Weighted average common shares outstanding, as reported
Basic		240,300			238,833		1	%		240,689			236,986		2	%
Diluted		242,355			241,735		0	%		242,745			239,837		1	%


(a) See separate natural gas, NGLs and oil sales information table.
(b) Included in Other income in the 10-K.
(c) Costs associated with stock compensation and restricted stock amortization, which have been reflected
in the categories associated with the direct personnel costs, which are combined with the cash costs in the 10-K.
(d) Reflects the change in market value of the vested Company stock held in the deferred compensation plan.
(e) Included in interest expense in the 10-K.

RANGE RESOURCES CORPORATION


BALANCE SHEET
(In thousands)	December 31,			December 31,
	2024			2023
	(Audited)			(Audited)
Assets
Current assets	$	636,982		$	528,794
Derivative assets		87,098			442,971
Natural gas and oil properties, successful efforts method		6,421,700			6,117,681
Other property and equipment		2,465			1,696
Operating lease right-of-use assets		119,838			23,821
Other		79,592			88,922
	$	7,347,675		$	7,203,885

Liabilities and Stockholders’ Equity
Current liabilities	$	1,263,247		$	580,469
Asset retirement obligations		1,189			2,395
Derivative liabilities		9,634			222
Senior notes	$	1,089,614			1,774,229
Deferred tax liabilities		541,378			561,288
Derivative liabilities		10,488			107
Deferred compensation liabilities		65,233			72,976
Operating lease liabilities		35,737			16,064
Asset retirement obligations and other liabilities		137,181			119,896
Divestiture contract obligation		257,317			310,688
		3,411,018			3,438,334

Common stock and retained deficit		4,449,987			4,213,585
Other comprehensive income		611			647
Common stock held in treasury		(513,941	)		(448,681	)
Total stockholders’ equity		3,936,657			3,765,551
	$	7,347,675		$	7,203,885

RECONCILIATION OF TOTAL DEBT AS REPORTED
TO NET DEBT, a non-GAAP measure
(Unaudited, in thousands)
	December 31,			December 31,
	2024			2023			%

Total debt, net of deferred financing costs, as reported	$	1,697,883		$	1,774,229		-4	%
Unamortized debt issuance costs, as reported		10,819			14,159
Less cash and cash equivalents, as reported		(304,490	)		(211,974	)
Net debt, a non-GAAP measure	$	1,404,212		$	1,576,414		-11	%

RANGE RESOURCES CORPORATION




CASH FLOWS FROM OPERATING ACTIVITIES
(Unaudited, in thousands)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023

Net income		94,842			310,034			266,340			871,142
Adjustments to reconcile net cash provided from continuing operations:
Deferred income tax (benefit) expense		(33,720	)		78,365			(23,900	)		227,654
Depletion, depreciation and amortization		92,484			90,968			358,356			350,165
Abandonment and impairment of unproved properties		(201	)		2,051			8,417			46,359
Derivative fair value loss (income)		53,804			(291,059	)		(56,726	)		(821,154	)
Cash settlements on derivative financial instruments		69,697			65,018			432,392			253,514
Divestiture contract obligation, including accretion		9,155			28,215			37,088			99,595
Allowance for bad debts		50			–			50			–
Amortization of deferred financing costs and other		1,174			1,144			4,526			4,735
Deferred and stock-based compensation		16,267			7,683			53,864			67,849
Gain on sale of assets		(89	)		(101	)		(311	)		(454	)
(Gain) loss on early extinguishment of debt		(3	)		1			(257	)		(438	)

Changes in working capital:
Accounts receivable		(121,116	)		(65,334	)		(19,586	)		223,081
Other current assets		5,485			8,235			3,676			(1,285	)
Accounts payable		26,609			7,234			(443	)		(77,057	)
Accrued liabilities and other		3,452			(16,359	)		(118,972	)		(265,814	)
Net changes in working capital		(85,570	)		(66,224	)		(135,325	)		(121,075	)
Net cash provided from operating activities		217,890			226,095			944,514			977,892



RECONCILIATION OF NET CASH PROVIDED FROM OPERATING
ACTIVITIES, AS REPORTED, TO CASH FLOW FROM OPERATIONS
BEFORE CHANGES IN WORKING CAPITAL, a non-GAAP measure
(Unaudited, in thousands)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023
Net cash provided from operating activities, as reported	$	217,890		$	226,095		$	944,514		$	977,892
Net changes in working capital		85,570			66,224			135,325			121,075
Exploration expense		7,983			7,193			25,489			25,280
Lawsuit settlements		91			114			782			1,052
Non-cash compensation adjustment and other		120			272			517			655
Cash flow from operations before changes in working capital – non-GAAP measure	$	311,654		$	299,898		$	1,106,627		$	1,125,954



ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING
(Unaudited, in thousands)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023
Basic:
Weighted average shares outstanding		241,112			241,258			241,868			241,130
Stock held by deferred compensation plan		(812	)		(2,425	)		(1,179	)		(4,144	)
Adjusted basic		240,300			238,833			240,689			236,986

Dilutive:
Weighted average shares outstanding		241,112			241,258			241,868			241,130
Dilutive stock options under treasury method		1,243			477			877			(1,293	)
Adjusted dilutive		242,355			241,735			242,745			239,837

RANGE RESOURCES CORPORATION

RECONCILIATION OF NATURAL GAS, NGLs AND OIL SALES
AND DERIVATIVE FAIR VALUE INCOME (LOSS) TO
CALCULATED CASH REALIZED NATURAL GAS, NGLs AND
OIL PRICES WITH AND WITHOUT THIRD-PARTY
TRANSPORTATION, GATHERING, PROCESSING AND
COMPRESSION COSTS, a non-GAAP measure
(Unaudited, In thousands, except per unit data)
	Three Months Ended December 31,								Twelve Months Ended December 31,
	2024			2023			%		2024			2023			%
Natural gas, NGLs and Oil Sales components:
Natural gas sales	$	337,176		$	320,393				$	1,052,442		$	1,234,308
NGLs sales		270,356			238,423					1,020,903			933,791
Oil sales		27,590			44,463					140,505			166,562
Total Natural Gas, NGLs and Oil Sales, as reported	$	635,122		$	603,279		5	%	$	2,213,850		$	2,334,661		-5	%

Derivative Fair Value (Loss) Income, as reported	$	(53,804	)	$	291,059				$	56,726		$	821,154
Cash settlements on derivative financial instruments – (gain) loss:
Natural gas		(64,169	)		(59,846	)				(419,199	)		(256,693	)
NGLs		(433	)		–					(3,743	)		–
Oil		(5,095	)		2,828					(9,450	)		11,179
Contingent consideration – divestiture		–			(8,000	)				–			(8,000	)
Total change in fair value related to commodity derivatives prior to
settlement, a non GAAP measure	$	(123,501	)	$	226,041				$	(375,666	)	$	567,640

Transportation, gathering, processing and compression components:
Natural Gas	$	155,483		$	152,058				$	611,698		$	588,970
NGLs		143,294			130,833					564,269			524,114
Oil		624			170					1,958			857
Total transportation, gathering, processing and compression, as reported	$	299,401		$	283,061				$	1,177,925		$	1,113,941

Natural gas, NGL and Oil sales, including cash-settled derivatives: (c)
Natural gas sales	$	401,345		$	380,239				$	1,471,641		$	1,491,001
NGLs sales		270,789			238,423					1,024,646			933,791
Oil Sales		32,685			41,635					149,955			155,383
Total	$	704,819		$	660,297		7	%	$	2,646,242		$	2,580,175		3	%

Production of natural gas, NGLs and oil during the periods (a):
Natural Gas (mcf)		138,472,888			141,716,744		-2	%		545,415,974			538,084,671		1	%
NGLs (bbls)		10,230,284			9,571,519		7	%		39,622,576			37,939,700		4	%
Oil (bbls)		462,570			656,533		-30	%		2,180,528			2,475,306		-12	%
Gas equivalent (mcfe) (b)		202,630,012			203,085,056		0	%		796,234,598			780,574,707		2	%

Production of natural gas, NGLs and oil – average per day (a):
Natural Gas (mcf)		1,505,140			1,540,399		-2	%		1,490,208			1,474,205		1	%
NGLs (bbls)		111,199			104,038		7	%		108,258			103,944		4	%
Oil (bbls)		5,028			7,136		-30	%		5,958			6,782		-12	%
Gas equivalent (mcfe) (b)		2,202,500			2,207,446		0	%		2,175,504			2,138,561		2	%

Average prices, excluding derivative settlements and before third-party
transportation costs:
Natural Gas (per mcf)	$	2.43		$	2.26		8	%	$	1.93		$	2.29		-16	%
NGLs (per bbl)	$	26.43		$	24.91		6	%	$	25.77		$	24.61		5	%
Oil (per bbl)	$	59.64		$	67.72		-12	%	$	64.44		$	67.29		-4	%
Gas equivalent (per mcfe) (b)	$	3.13		$	2.97		5	%	$	2.78		$	2.99		-7	%

Average prices, including derivative settlements before third-party
transportation costs: (c)
Natural Gas (per mcf)	$	2.90		$	2.68		8	%	$	2.70		$	2.77		-3	%
NGLs (per bbl)	$	26.47		$	24.91		6	%	$	25.86		$	24.61		5	%
Oil (per bbl)	$	70.66		$	63.42		11	%	$	68.77		$	62.77		10	%
Gas equivalent (per mcfe) (b)	$	3.48		$	3.25		7	%	$	3.32		$	3.31		0	%

Average prices, including derivative settlements and after third-party
transportation costs: (d)
Natural Gas (per mcf)	$	1.78		$	1.61		11	%	$	1.58		$	1.68		-6	%
NGLs (per bbl)	$	12.46		$	11.24		11	%	$	11.62		$	10.80		8	%
Oil (per bbl)	$	69.31		$	63.16		10	%	$	67.87		$	62.43		9	%
Gas equivalent (per mcfe) (b)	$	2.00		$	1.86		8	%	$	1.84		$	1.88		-2	%

Transportation, gathering and compression expense per mcfe	$	1.48		$	1.39		6	%	$	1.48		$	1.43		3	%

(a) Represents volumes sold regardless of when produced.
(b) Oil and NGLs are converted at the rate of one barrel equals six mcfe based upon the approximate relative energy content of oil to natural gas, which is not necessarily
indicative of the relationship of oil and natural gas prices.
(c) Excluding third-party transportation, gathering, processing and compression costs.
(d) Net of transportation, gathering, processing and compression costs.

RANGE RESOURCES CORPORATION

RECONCILIATION OF INCOME BEFORE INCOME
TAXES AS REPORTED TO INCOME BEFORE INCOME TAXES
EXCLUDING CERTAIN ITEMS, a non-GAAP measure
(Unaudited, In thousands, except per share data)
	Three Months Ended December 31,									Twelve Months Ended December 31,
	2024			2023			%			2024			2023			%

Income from operations before income taxes, as reported		64,024			386,946			-83	%		250,605			1,100,343		-77	%
Adjustment for certain special items:
Gain on the sale of assets		(89	)		(101	)					(311	)		(454	)
ARO settlement loss (gain)		–			(2	)					26			(1	)
Change in fair value related to derivatives prior to settlement		123,501			(226,041	)					375,666			(567,640	)
Abandonment and impairment of unproved properties		(201	)		2,051						8,417			46,359
(Gain) loss on early extinguishment of debt		(3	)		1						(257	)		(438	)
Lawsuit settlements		91			114						782			1,052
Exit costs		9,156			28,279						37,214			99,940
Brokered natural gas and marketing – stock-based compensation		603			491						2,465			2,095
Direct operating – stock-based compensation		468			443						1,922			1,723
Exploration expenses – stock-based compensation		349			315						1,354			1,250
General & administrative – stock-based compensation		10,905			9,389						38,004			35,850
Deferred compensation plan – non-cash adjustment		3,878			(2,953	)					9,593			26,593

Income before income taxes, as adjusted		212,682			198,932			7	%		725,480			746,672		-3	%

Income tax expense (benefit), as adjusted
Current (a)		2,902			(1,453	)					8,165			1,547
Deferred (a)		46,015			47,208						158,696			170,189

Net income, excluding certain items, a non-GAAP measure	$	163,765		$	153,177			7	%	$	558,619		$	574,936		-3	%

Non-GAAP income per common share
Basic	$	0.68		$	0.64			6	%	$	2.32		$	2.43		-5	%
Diluted	$	0.68		$	0.63			8	%	$	2.30		$	2.40		-4	%

Non-GAAP diluted shares outstanding, if dilutive		242,355			241,735						242,745			239,837





(a) Taxes are estimated to be approximately 23% for 2023 and 2024

RANGE RESOURCES CORPORATION



RECONCILIATION OF NET INCOME, EXCLUDING
CERTAIN ITEMS AND ADJUSTED EARNINGS PER
SHARE, non-GAAP measures
(In thousands, except per share data)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023

Net income, as reported	$	94,842		$	310,034		$	266,340		$	871,142
Adjustments for certain special items:
Gain on the sale of assets		(89	)		(101	)		(311	)		(454	)
ARO settlement loss (gain)		–			(2	)		26			(1	)
(Gain) loss on early extinguishment of debt		(3	)		1			(257	)		(438	)
Change in fair value related to derivatives prior to settlement		123,501			(226,041	)		375,666			(567,640	)
Abandonment and impairment of unproved properties		(201	)		2,051			8,417			46,359
Lawsuit settlements		91			114			782			1,052
Exit costs		9,156			28,279			37,214			99,940
Stock-based compensation		12,325			10,638			43,745			40,918
Deferred compensation plan		3,878			(2,953	)		9,593			26,593
Tax impact		(79,735	)		31,157			(182,596	)		57,465

Net income, excluding certain items, a non-GAAP measure	$	163,765		$	153,177		$	558,619		$	574,936

Net income per diluted share, as reported	$	0.39		$	1.27		$	1.09		$	3.57
Adjustments for certain special items per diluted share:
Gain on the sale of assets		–			–			–			–
ARO settlement loss (gain)		–			–			–			–
(Gain) loss on early extinguishment of debt		–			–			–			–
Change in fair value related to derivatives prior to settlement		0.51			(0.94	)		1.55			(2.37	)
Abandonment and impairment of unproved properties		–			0.01			0.03			0.19
Lawsuit settlements		–			–			–			–
Exit costs		0.04			0.12			0.15			0.42
Stock-based compensation		0.05			0.04			0.18			0.17
Deferred compensation plan		0.02			(0.01	)		0.04			0.11
Adjustment for rounding differences		–			–			0.01			0.01
Tax impact		(0.33	)		0.13			(0.75	)		0.24
Dilutive share impact (rabbi trust and other)		–			0.01			–			0.06

Net income per diluted share, excluding certain items, a non-GAAP measure	$	0.68		$	0.63		$	2.30		$	2.40

Adjusted earnings per share, a non-GAAP measure:
Basic	$	0.68		$	0.64		$	2.32		$	2.43
Diluted	$	0.68		$	0.63		$	2.30		$	2.40

RANGE RESOURCES CORPORATION

RECONCILIATION OF CASH MARGIN PER MCFE, a non-
GAAP measure
(Unaudited, In thousands, except per unit data)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023
Revenues
Natural gas, NGLs and oil sales, as reported	$	635,122		$	603,279		$	2,213,850		$	2,334,661
Derivative fair value (loss) income, as reported		(53,804	)		291,059			56,726			821,154
Less non-cash fair value loss (gain)		123,501			(226,041	)		375,666			(567,640	)
Brokered natural gas and marketing, as reported		41,535			44,460			133,048			206,552
Other income, as reported		3,564			2,660			13,460			12,505
Less gain on sale of assets		(89	)		(101	)		(311	)		(454	)
Less ARO settlement		–			(2	)		26			(1	)
Cash revenues		749,829			715,314			2,792,465			2,806,777

Expenses
Direct operating, as reported		25,123			22,643			95,321			96,085
Less direct operating stock-based compensation		(468	)		(443	)		(1,922	)		(1,723	)
Transportation, gathering and compression, as reported		299,401			283,061			1,177,925			1,113,941
Taxes other than income, as reported		6,166			4,083			21,625			23,726
Brokered natural gas and marketing, as reported		42,258			44,810			140,545			202,884
Less brokered natural gas and marketing stock-based compensation		(603	)		(491	)		(2,465	)		(2,095	)
General and administrative, as reported		46,531			43,975			172,139			164,740
Less G&A stock-based compensation		(10,905	)		(9,389	)		(38,004	)		(35,850	)
Less lawsuit settlements		(91	)		(114	)		(782	)		(1,052	)
Less bad debt expense		(50	)		–			(50	)		–
Interest expense, as reported		29,268			30,086			118,758			124,004
Less amortization of deferred financing costs		(1,357	)		(1,352	)		(5,417	)		(5,384	)
Cash expenses		435,273			416,869			1,677,673			1,679,276

Cash margin, a non-GAAP measure	$	314,556		$	298,445		$	1,114,792		$	1,127,501

Mmcfe produced during period		202,630			203,085			796,235			780,575

Cash margin per mcfe	$	1.55		$	1.47		$	1.40		$	1.44

RECONCILIATION OF INCOME BEFORE INCOME TAXES
TO CASH MARGIN, a non-GAAP measure
(Unaudited, in thousands, except per unit data)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023

Income before income taxes, as reported	$	64,024		$	386,946		$	250,605		$	1,100,343
Adjustments to reconcile income before income taxes
to cash margin:
ARO settlements		–			(2	)		26			(1	)
Derivative fair value loss (income)		53,804			(291,059	)		(56,726	)		(821,154	)
Net cash receipts on derivative settlements		69,697			65,018			432,392			253,514
Exploration expense		7,983			7,193			25,489			25,280
Lawsuit settlements		91			114			782			1,052
Exit costs		9,156			28,279			37,214			99,940
Deferred compensation plan		3,878			(2,953	)		9,593			26,593
Stock-based compensation (direct operating, brokered natural gas and		12,325			10,638			43,745			40,918
marketing and general and administrative)
Bad debt expense		50			–			50			–
Interest – amortization of deferred financing costs		1,357			1,352			5,417			5,384
Depletion, depreciation and amortization		92,484			90,968			358,356			350,165
Gain on sale of assets		(89	)		(101	)		(311	)		(454	)
(Gain) loss on early extinguishment of debt		(3	)		1			(257	)		(438	)
Abandonment and impairment of unproved properties		(201	)		2,051			8,417			46,359
Cash margin, a non-GAAP measure	$	314,556		$	298,445		$	1,114,792		$	1,127,501

The MIL Network –

February 26, 2025

MIL-OSI New Zealand: Business and Energy – Winter ‘24 hedging costs impact interim financial result – Meridian

Source: Meridian Energy

26 February 2025 – Meridian Energy has reported a net loss after tax of $121 million for the six months ending 31 December 2024, compared to a net profit after tax of $191 million in last year’s interim result.

Operating cash flows were $50 million, down from $303 million in the same period last year.

These results were heavily impacted by the cost of hedge contracts for winter 2024 in the face of one-in-90-year record low inflows and an unexpected and unprecedented shortage of domestic gas. The hedge contracts included calling the largest demand response option with New Zealand’s Aluminum Smelter (NZAS).

EBITDAF fell from $443 million to $257 million and underlying net profit fell from $175 million to a $5 million loss. Both of these are non-GAAP measures.

“The combination of particularly low hydro inflows, low wind and gas shortages made the operating environment for the first half of this financial year as tough as I can recall experiencing,” says Meridian Chief Executive Neal Barclay.

“We took a hit for New Zealand. Meridian put this country’s security of supply first and, as New Zealand’s largest renewable electricity generator, our balance sheet tends to underwrite the mitigation of extended droughts. That’s one of the ways the country benefits from having large and financially strong gentailers. While the situation was particularly challenging, we know we rely on Mother Nature for our fuel and accept the financial impact droughts bring. We prepare the business to deal with these kinds of eventualities, including maintaining a strong and flexible balance sheet.”

“There is plenty of time before the coming winter, but we are highly focused on managing risks to winter 2025 security. We have reached a new agreement with NZAS for them to reduce demand by 50MW and are looking for simple rule changes to access this country’s existing contingent hydro storage. The bigger issue, though, is the structural and significant shortage of domestic gas. New Zealand needs to take urgent action to address this. Gas is the biggest factor in setting spot and future electricity prices,” says Neal Barclay.

With a challenging first half to the financial year, the Meridian Board has decided to maintain the interim dividend at the same level as the prior period, and declared an interim ordinary dividend of 6.15 cents per share. The dividend reinvestment plan will apply to this interim dividend at a 2% discount.

Mr Barclay says that Meridian has continued to build strong momentum to set the business up for future growth. This year, the company expects to commit over $1 billion of capital to new development projects.

“The relatively fast decline in gas resources has put even greater emphasis on the need to deploy new renewable developments as quickly as possible, and also get more out of our existing fleet of hydro and wind generation. In that regard, we’ve had a few wins recently. We’ve reinstated capacity in the generation fleet after resolving transformer issues at Manapōuri and West Wind, and we’ve begun commissioning our Ruakākā grid scale battery. We’ve also made great progress in advancing a development pipeline that will deliver additional megawatts for many years to come,” says Neal Barclay.

Meridian recently announced:

A finalised consent for its 120MW Ruakākā solar development (February)
Consent for its 90MW Mt Munro Wind Farm near Eketāhuna (February)
A Scheme Implementation Agreement as part of its bid to acquire the remaining shares in NZ Windfarms (February)
A Power Purchase Agreement with Harmony Energy / First Renewables in respect of their joint venture to build the 150MW Tauhei Solar Farm in the Waikato (January)
A 50-50 joint venture with Nova Energy to build the 400MW Te Rahui solar farm at Rangitāiki near Taupō (December).

The first half of FY25 has also seen tremendous progress in Meridian’s Retail business. Having completed a strategic reset and restructure to enable the business to meet changing technology and consumer needs, the company has launched three new products (Smart Hot Water, Smart EV Charging and the Four Hours Free Plan), with more to come over the remainder of the financial year.

“Customers are responding to these changes, with record numbers signing up. As of 1 January, we had achieved our highest ever market share of electricity connections, with 16.58% across the Meridian and Powershop brands. Our brands also led the industry rankings for new connections in December, with Powershop first and Meridian second, and more than 4,000 connections that month across both brands,” says Neal Barclay.

“The business has weathered an extraordinarily difficult set of circumstances and leveraged our financial strength to ensure the lights stayed on for New Zealand homes and businesses. At the same time, we’ve not backed away from our strategic goals and our customer market share has continued to grow as has our renewable development pipeline.”

MIL OSI New Zealand News –

February 26, 2025

MIL-OSI: Diginex Limited Launches ESG Rating Support Service to Help Businesses Secure and Improve ESG Scores

Source: GlobeNewswire (MIL-OSI)

HONG KONG, Feb. 25, 2025 (GLOBE NEWSWIRE) — Diginex Limited (“Diginex Limited” or the “Company”), an impact technology company specializing in environmental, social, and governance (ESG) issues, is excited to announce the launch of its ESG Ratings Support Service. The innovative service is designed to help businesses secure an ESG score across key rating agencies, including CDP, EcoVadis, Sustainable Fitch, S&P, Sustainalytics, the world’s leading ESG ratings providers. Leveraging Diginex Limited’s expertise and cutting-edge technology, the ESG Ratings Support Service provides companies with a robust framework to optimize their ESG ratings, attract investment, and strengthen stakeholder trust.

The launch of the ESG Ratings Support Service comes at a pivotal moment as investors, regulators, and consumers increasingly prioritize sustainability. With the global ESG investment market reaching nearly USD 29.86 trillion in 2024, according to a report by Precedence Research, and regulatory bodies like the European Union, SEC as well as many stock exchanges globally who are mandating comprehensive ESG / Climate disclosures, businesses need reliable tools to navigate this landscape. diginexADVISORY’s new ESG Ratings Support Service offers a tailored approach, combining expert consultancy with data-driven insights to help organizations report their ESG data and performance to secure competitive advantages.

“We believe our ESG Ratings Support Service is a game-changer for companies looking to align sustainability with commercial success,” said Mark Blick, Chief Executive Officer of Diginex Limited. “By providing clear, actionable recommendations into ESG performance, we’re helping businesses to unlock new opportunities for growth and investment. Sustainability isn’t just a compliance exercise—it’s a prerequisite for long-term prosperity.”

Case Study: Living Style Group’s ESG Performance

A recent example of the service’s impact is diginexADVISORY’s collaboration with the Living Style Group, a global leader in home decor and furnishings generating over $1.2 billion in yearly revenue. Living Style Group successfully completed its first-ever CDP submission, achieving an impressive B score in Climate on its first attempt.

“With Diginex’s expert guidance, we successfully navigated our first ESG disclosure, achieving strong CDP scores on our first attempt. Diginex’s structured approach made a complex process seamless,” said Mark Loomis, EVP Quality, Compliance & Sustainability, Living Style Group. “This report marks an important milestone in our journey toward greater sustainability, and we look forward to building on these efforts in the years to come.”

Through this collaboration, we believe that Living Style Group is now better equipped to attract ESG-focused investors and meet evolving regulatory demands.

A Comprehensive Solution for ESG Success

The ESG Ratings Support Service integrates with Diginex’s award-winning diginexESG platform, which supports 17 global frameworks, including GRI (the “Global Reporting Initiative”), SASB (the “Sustainability Accounting Standards Board”), and TCFD (the “Task Force on Climate-related Financial Disclosures”). We expect our clients to benefit from end-to-end support, from materiality assessments and data management to stakeholder engagement and report generation through implementation of the ESG Ratings Support Service.

The ESG Ratings Service is available immediately to clients worldwide, with options for small and medium enterprises (SMEs) and large corporations alike.

About Diginex Limited
Diginex Limited is a Cayman Islands exempted company, with subsidiaries located in Hong Kong, the United Kingdom and the United States of America. Diginex Limited conducts operations through its wholly owned subsidiary Diginex Solutions (HK) Limited, a Hong Kong corporation (“DSL”) and DSL is the sole owner of (i) Diginex Services Limited, a corporation formed in the United Kingdom and (ii) Diginex USA LLC, a limited liability company formed in the State of Delaware. DSL commenced operations in 2020, and is a software company that empowers businesses and governments to streamline ESG, climate, and supply chain data collection and reporting. DSL is an impact technology business that helps organizations address the some of the most pressing ESG, climate and sustainability issues, utilizing blockchain, machine learning and data analysis technology to lead change and increase transparency in corporate social responsibility and climate action.

Diginex’s products and services solutions enable companies to collect, evaluate and share sustainability data through easy-to-use software. For more information, please visit the Company’s website: https://www.diginex.com/.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s filings with the SEC.

For investor and media inquiries, please contact:

Diginex
Investor Relations
Email: ir@diginex.com

European IR Contract
Jens Hecht
Phone: +49.40.609186.82
Email: jens.hecht@kirchhoff.de

US IR Contract
Jackson Lin
Lambert by LLYC
Phone: +1 (646) 717-4593
Email: jian.lin@llyc.global

The MIL Network –

February 26, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

__________________________________________________

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

Financial Highlights: Fourth Quarter 2024

Revenue for the quarter ended December 31, 2024 increased to $481.4 million compared to $414.1 million for the fourth quarter of 2023, an increase of 16.3% on a reported basis and constant currency basis. Revenue increased by 2.0% sequentially on a reported basis and 2.4% on a constant currency basis, from the third quarter of 2024.

	Revenue						Gross Margin
	Three months ended						Three months ended
Reportable Segments	December 31, 2024		December 31, 2023		September 30, 2024		December 31, 2024		December 31, 2023		September 30, 2024
	(dollars in millions)
Insurance	$	162.0	$	139.1	$	157.6	36.9	%	36.2	%	36.3	%
Healthcare		31.6		26.0		30.5	31.7	%	36.9	%	33.6	%
Emerging Business		80.1		67.0		80.0	40.7	%	41.0	%	40.2	%
Analytics		207.7		182.0		204.0	39.0	%	35.4	%	38.5	%
Revenues, net	$	481.4	$	414.1	$	472.1	38.1	%	36.7	%	37.8	%

Operating income margin for the quarter ended December 31, 2024 was 14.8%, compared to 13.1% for the fourth quarter of 2023 and 14.7% for the third quarter of 2024. Adjusted operating income margin for the quarter ended December 31, 2024 was 18.8%, compared to 17.8% for the fourth quarter of 2023 and 19.9% for the third quarter of 2024.
Diluted earnings per share for the quarter ended December 31, 2024 was $0.31, compared to $0.24 for the fourth quarter of 2023 and $0.33 for the third quarter of 2024. Adjusted diluted earnings per share for the quarter ended December 31, 2024 was $0.44, compared to $0.35 for the fourth quarter of 2023 and $0.44 for the third quarter of 2024.

Financial Highlights: Full Year 2024

Revenue for the year ended December 31, 2024 increased to $1.84 billion compared to $1.63 billion for the year ended December 31, 2023, an increase of 12.7% on a reported basis and constant currency basis.

	Revenue				Gross Margin
	Year ended				Year ended
Reportable Segments	December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023
	(dollars in millions)
Insurance	$	614.0	$	529.9	36.4	%	35.5	%
Healthcare		116.4		106.0	33.0	%	34.6	%
Emerging Business		311.7		265.7	41.8	%	43.2	%
Analytics		796.3		729.1	37.5	%	36.8	%
Revenues, net	$	1,838.4	$	1,630.7	37.6	%	37.3	%

Operating income margin for the year ended December 31, 2024 was 14.3%, compared to 14.6% for the year ended December 31, 2023. Adjusted operating income margin for the year ended December 31, 2024 was 19.4%, compared to 19.3% for the year ended December 31, 2023.
Diluted earnings per share for the year ended December 31, 2024 was $1.21, compared to $1.10 for the year ended December 31, 2023. Adjusted diluted earnings per share for the year ended December 31, 2024 was $1.65, compared to $1.43 for the year ended December 31, 2023.

Business Highlights: Fourth Quarter 2024

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

2025 Operating Model

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

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

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

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

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

2025 Guidance

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

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

Conference Call

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

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

About ExlService Holdings, Inc.

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

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


EXLSERVICE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amount and share count)

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

⁽¹⁾Exclusive of depreciation and amortization expense.


EXLSERVICE HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except per share amount and share count)

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

EXLSERVICE HOLDINGS, INC.Reconciliation of Adjusted Financial Measures to GAAP Measures

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

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

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

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

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

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

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

Reconciliation of Adjusted Operating Income and Adjusted EBITDA (Amounts in thousands)

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

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

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

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


Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share (Amounts in thousands, except per share data)

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

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

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

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

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

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

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

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

The MIL Network –

February 26, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

Declared Quarterly Distribution of $0.41 Per Share;

Stable NAV/Strong Credit Quality

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

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

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

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

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

At December 31, 2024:

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

Operating Results for the Quarter Ended December 31, 2024:

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

Operating Results for the Year Ended December 31, 2024:

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

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

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

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

Comprehensive Investment Portfolio

Portfolio Activity

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

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

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

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

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

Comprehensive Investment Portfolio Composition

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

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

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

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

SLR Investment Corp. Portfolio

Asset Quality

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

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

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

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

Investment Income Contribution by Asset Class

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

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

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

SLR Senior Lending Program LLC (SSLP)

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

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

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

Investment Income

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

Expenses

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

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

Net Investment Income

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

Net Realized and Unrealized Loss

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

Net Increase in Net Assets Resulting from Operations

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

Capital and Liquidity

Credit Facilities

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

Unsecured Debt

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

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

Leverage

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

Available Capital

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

Unfunded Commitments

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

Subsequent Events

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

Conference Call and Webcast Information

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

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

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

Operating results:	Quarter Ended December 31, 2024 (unaudited)		Quarter Ended September 30, 2024 (unaudited)
Interest income		$36,290		$45,373
Dividend income		16,502		12,578
Other income		2,791		1,820
Total investment income		55,583		59,771
Management fee		7,739		7,893
Net Performance-based Incentive fee		5,920		6,036
Interest and other credit facility expenses		16,184		18,913
Administrative services expense		1,376		1,392
Other general and administrative expenses		572		1,189
Net expenses		31,791		35,423
Net investment income		$23,792		$24,348
Net realized and unrealized gains (losses)		(1,183)		(2,299)
Net increase in net assets resulting from operations		22,609		22,049
Net investment income per common share		$0.44		$0.45
Net realized and unrealized gains (losses) per common share		($0.02)		($0.04)
Earnings per common share – basic and diluted		$0.41		$0.40

SLR INVESTMENT CORP. CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except share and per share amounts)

	December 31, 2024			December 31, 2023
Assets
Investments at fair value:
Companies less than 5% owned (cost: $1,019,357 and $1,260,205, respectively)	$	1,027,457		$	1,271,442
Companies 5% to 25% owned (cost: $103,655 and $60,064, respectively)		89,945			44,250
Companies more than 25% owned (cost: $916,554 and $870,128, respectively)		888,232			839,074
Cash		16,761			11,864
Cash equivalents (cost: $397,510 and $332,290, respectively)		397,510			332,290
Dividends receivable		15,375			11,768
Interest receivable		11,993			11,034
Receivable for investments sold		1,573			1,538
Prepaid expenses and other assets		571			608
Total assets	$	2,449,417		$	2,523,868
Liabilities
Debt ($1,041,093 and $1,183,250 face amounts, respectively, reported net of unamortized debt issuance costs of $9,399 and $5,473, respectively.)	$	1,031,694		$	1,177,777
Payable for investments and cash equivalents purchased		397,510			332,290
Management fee payable		7,739			8,027
Performance-based incentive fee payable		5,920			5,864
Interest payable		7,836			7,535
Administrative services payable		3,332			1,969
Other liabilities and accrued expenses		2,460			3,767
Total liabilities	$	1,456,491		$	1,537,229
Commitments and contingencies
Net Assets
Common stock, par value $0.01 per share, 200,000,000 and 200,000,000 common shares authorized, respectively, and 54,554,634 and 54,554,634 shares issued and outstanding, respectively	$	546		$	546
Paid-in capital in excess of par		1,117,606			1,117,930
Accumulated distributable net loss		(125,226	)		(131,837	)
Total net assets	$	992,926		$	986,639
Net Asset Value Per Share	$	18.20		$	18.09

SLR INVESTMENT CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts)

	2024			2023
INVESTMENT INCOME:
Interest:
Companies less than 5% owned	$	154,077		$	163,589
Companies 5% to 25% owned		3,881			2,058
Companies more than 25% owned		13,055			11,627
Dividends:
Companies 5% to less than 25% owned		845			—
Companies more than 25% owned		52,944			45,986
Other income:
Companies less than 5% owned		7,117			5,802
Companies 5% to 25% owned		—			26
Companies more than 25% owned		512			224
Total investment income		232,431			229,312
EXPENSES:
Management fees		31,389			31,661
Performance-based incentive fees		24,039			22,898
Interest and other credit facility expenses		71,464			72,507
Administrative services expense		5,520			5,899
Other general and administrative expenses		3,862			4,756
Total expenses		136,274			137,721
Performance-based incentive fees waived		(153	)		(500	)
Net expenses		136,121			137,221
Net investment income	$	96,310		$	92,091
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND CASH EQUIVALENTS:
Net realized loss on investments and cash equivalents:
Companies less than 5% owned	$	(2,252	)	$	(27,602	)
Companies more than 25% owned		—			(381	)
Net realized loss on investments and cash equivalents		(2,252	)		(27,983	)
Net change in unrealized gain (loss) on investments:
Companies less than 5% owned		(3,137	)		20,425
Companies 5% to 25% owned		2,105			(1,384	)
Companies more than 25% owned		2,731			(6,761	)
Net change in unrealized gain on investments		1,699			12,280
Net realized and unrealized loss on investments and cash equivalents		(553	)		(15,703	)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	95,757		$	76,388
EARNINGS PER SHARE	$	1.76		$	1.40

About SLR Investment Corp.

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

Forward-Looking Statements

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

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

The MIL Network –

February 26, 2025

MIL-OSI: MidCap Financial Investment Corporation Reports Financial Results for the Quarter and Fiscal Year Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

Results for the Quarter and Fiscal Year Ended December 31, 2024 and Other Recent Highlights:

Net investment income per share for the quarter was $0.40
Net asset value per share as of the end of the quarter was $14.98, compared to $15.10 as of September 30, 2024, a decrease of 0.8%
New investment commitments made during the quarter totaled $255 million⁽¹⁾
Gross fundings, excluding revolver fundings⁽²⁾, totaled $248 million for the quarter
Net repayments, including revolvers⁽²⁾, totaled $6 million for the quarter
Net leverage⁽³⁾ was 1.16x as of December 31, 2024
On February 21, 2025, the Board of Directors (the “Board”) declared a dividend of $0.38 per share payable on March 27, 2025 to stockholders of record as of March 11, 2025⁽⁴⁾
On February 24, 2025, the Company closed its second Collateralized Loan Obligation (“CLO”) transaction, MFIC Bethesda CLO 2 LLC (the “Bethesda CLO 2 Issuer”), a $529.6 million CLO secured by middle market loans, adding $399.0 million of secured debt capital with a weighted average price of SOFR + 161 basis points⁽⁵⁾

NEW YORK, Feb. 25, 2025 (GLOBE NEWSWIRE) — MidCap Financial Investment Corporation (NASDAQ: MFIC) or the “Company,” today announced financial results for its quarter and fiscal year ended December 31, 2024. The Company’s net investment income was $0.40 per share for the quarter ended December 31, 2024, compared to $0.44 per share for the quarter ended September 30, 2024. The Company’s net asset value (“NAV”) was $14.98 per share as of December 31, 2024, compared to $15.10 as of September 30, 2024.

On February 21, 2025, the Board declared a dividend of $0.38 per share payable on March 27, 2025 to stockholders of record as of March 11, 2025.

Mr. Tanner Powell, the Company’s Chief Executive Officer, stated, “In the December quarter, we generated solid net investment income despite a modest amount of fee income and the impact of lower base rates. The vast majority of our portfolio is performing well and we are observing stability in certain credit metrics.” Mr. Powell continued, “MFIC is fortunate to have access to the significant volume of loans originated by MidCap Financial, a leading middle market lender managed by an affiliate of Apollo, which we believe provides MFIC with a significant deal sourcing advantage. While our market remains competitive, we observed a modest increase in spreads on new commitments compared to the previous quarter, at what we believe to be attractive leverage entry points. We took advantage of strength in the liquid credit markets to continue selling certain assets acquired from our recently completed mergers with Apollo Senior Floating Rate Fund, Inc. and Apollo Tactical Income Fund, Inc. and prudently deployed proceeds from these sales, along with the investment capacity generated from the mergers, into first lien floating rate middle market loans originated by MidCap Financial. We have a clear and straightforward plan to gradually increase leverage over the coming quarters and we believe MFIC’s future results are well-positioned to benefit as we re-lever back to our target level.”

Mr. Gregory W. Hunt, the Company’s Chief Financial Officer, said, “We are pleased to announce MFIC closed its second on balance sheet CLO transaction earlier this week. This CLO transaction adds attractive term-based financing at what we believe to be among the tightest levels achieved for a middle market CLO, reflecting the high quality of the underlying loans. MFIC significantly benefited from MidCap Financial and Apollo Global’s expertise in CLO management and structuring.”

___________________

(1)	Commitments made for the direct origination portfolio.
(2)	During the quarter ended December 31, 2024, direct origination revolver fundings totaled $55 million, direct origination revolver repayments totaled $56 million.
(3)	The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.
(4)	There can be no assurances that the Board will continue to declare a base dividend of $0.38 per share.
(5)	The Company retained all Class D Notes and all Subordinated Notes in the CLO transaction.

FINANCIAL HIGHLIGHTS

($ in billions, except per share data)	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Total assets	$	3.19	$	3.22	$	2.55	$	2.45	$	2.50
Investment portfolio (fair value)	$	3.01	$	3.03	$	2.44	$	2.35	$	2.33
Debt outstanding	$	1.75	$	1.77	$	1.51	$	1.41	$	1.46
Net assets	$	1.40	$	1.42	$	1.00	$	1.01	$	1.01
Net asset value per share	$	14.98	$	15.10	$	15.38	$	15.42	$	15.41

Debt-to-equity ratio		1.25 x		1.25 x		1.51 x		1.40 x		1.45 x
Net leverage ratio (1)		1.16 x		1.16 x		1.45 x		1.35 x		1.34 x

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(1) The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.


PORTFOLIO AND INVESTMENT ACTIVITY

	Three Months Ended December 31,						Year Ended December 31,
(in millions)*	2024			2023			2024			2023
Investments made in portfolio companies	$	303.5		$	134.1		$	1,613.6		$	417.1
Investments sold		(82.9	)		—			(271.5	)		—
Net activity before repaid investments		220.6			134.1			1,342.1			417.1
Investments repaid		(226.9	)		(180.7	)		(657.5	)		(504.3	)
Net investment activity	$	(6.4	)	$	(46.5	)	$	684.6		$	(87.2	)

Portfolio companies, at beginning of period		250			149			152			135
Number of investments in new portfolio companies		11			10			167			32
Number of exited companies		(28	)		(7	)		(86	)		(15	)
Portfolio companies at end of period		233			152			233			152

Number of investments in existing portfolio companies		83			48			130			84

____________________
^* Totals may not foot due to rounding.


OPERATING RESULTS

	Three Months Ended December 31,					Year Ended December 31,
(in millions)*	2024			2023		2024			2023
Net investment income	$	37.1		$	29.8	$	133.3		$	116.0
Net realized and change in unrealized gains (losses)		(13.0	)		3.5		(34.5	)		2.8
Net increase in net assets resulting from operations	$	24.1		$	33.3	$	98.8		$	118.8

*(per share) (1)**
Net investment income on per average share basis	$	0.40		$	0.46	$	1.71		$	1.78
Net realized and change in unrealized gain (loss) per share		(0.14	)		0.05		(0.44	)		0.04
Earnings per share — basic	$	0.26		$	0.51	$	1.27		$	1.82

____________________
* Totals may not foot due to rounding.

(1) Based on the weighted average number of shares outstanding for the period presented.

SHARE REPURCHASE PROGRAM*

During the three months ended December 31, 2024, the Company did not repurchase any shares.

Since the inception of the share repurchase program and through February 24, 2025, the Company repurchased 15,593,120 shares at a weighted average price per share of $15.91, inclusive of commissions, for a total cost of $248.1 million, leaving a maximum of $26.9 million available for future purchases under the current Board authorization of $275 million.

* Share figures have been adjusted for the 1-for-3 reverse stock split which was completed after market close on November 30, 2018.

LIQUIDITY

As of December 31, 2024, the Company’s outstanding debt obligations, excluding deferred financing cost and debt discount of $5.5 million, totaled $1.757 billion which was comprised of $350 million of Senior Unsecured Notes (the “2025 Notes”) which will mature on March 3, 2025, $125 million of Unsecured Notes (the “2026 Notes”) which will mature on July 16, 2026, $80 million of Unsecured Notes (the “2028 Notes”) which will mature on December 15, 2028, $232 million outstanding Class A-1 Notes in MFIC Bethesda CLO 1 LLC and $970.1 million outstanding under the multi-currency revolving credit facility (the “Facility”). As of December 31, 2024, $7.8 million in standby letters of credit were issued through the Facility. The available remaining commitment under the Facility was $682.0 million as of December 31, 2024, which is subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company’s portfolio.

On February 24, 2025, the Company completed a $529.6 million CLO transaction, a form of secured financing incurred by Bethesda CLO 2 Issuer, an indirect wholly owned, consolidated subsidiary of the Company. The notes offered by Bethesda CLO 2 Issuer in connection with the CLO transaction consist of $304.5 million of AAA(sf) Class A-1 Senior Secured Floating Rate Notes due 2037, which bear interest at the three-month SOFR plus 1.48%, $21.0 million of AAA(sf) Class A-2 Senior Secured Floating Rate Notes due 2037, which bear interest at three-month SOFR plus 1.70%, $31.5 million of AA(sf) Class B Senior Secured Floating Rate Notes due 2037, which bear interest at three-month SOFR plus 1.85%, $42 million of A(sf) Class C Senior Secured Floating Rate Notes due 2037, which bear interest at three-month SOFR plus 2.30%, $31.5 million of BBB-(sf) Class D Senior Secured Floating Rate Notes due 2037, which bear interest at three-month SOFR plus 3.75% and $99.1 million of Subordinated notes due 2125, which do not bear interest. The notes offered in the CLO transaction are structured as follows:

Class	Par Amount ($ in millions)		% of Capital Structure		Coupon	Expected Rating (S&P/Fitch)	Price
Class A-1 Notes	$	304.50	57.5	%	3M SOFR + 1.48%	AAA/AAA	100.00	%
Class A-2 Notes		21.00	4.0	%	3M SOFR + 1.70%	AAA/NR	100.00	%
Class B Notes		31.50	5.9	%	3M SOFR + 1.85%	AA/NR	100.00	%
Class C Notes		42.00	7.9	%	3M SOFR + 2.30%	A/NR	100.00	%
Class D Notes		31.50	5.9	%	3M SOFR + 3.75%	BBB-/NR	100.00	%
Subordinated Notes		99.10	18.7	%	N/A	NR	100.00	%
Total	$	529.60

The CLO transaction is backed by a diversified portfolio of middle-market commercial loans, which Bethesda CLO 2 Issuer purchased from the Company pursuant to a loan sale agreement entered into on February 24, 2025, using the proceeds of the CLO transaction. The Company retained all Class D Notes and all Subordinated Notes and the proceeds from the CLO transaction were used to repay borrowings under the Company’s Facility. The Company serves as collateral manager to Bethesda CLO 2 Issuer, Citigroup Global Markets Inc. acted as initial purchaser and Apollo Global Securities, LLC acted as placement agent.2C

CONFERENCE CALL / WEBCAST AT 8:30 AM EST ON FEBRUARY 26, 2025

The Company will also host a conference call on Wednesday, February 26, 2025, at 8:30 a.m. Eastern Time. All interested parties are welcome to participate in the conference call by dialing (800) 225-9448 approximately 5-10 minutes prior to the call; international callers should dial (203) 518-9708. Participants should reference either MidCap Financial Investment Corporation Earnings or Conference ID: MFIC0226 when prompted. A simultaneous webcast of the conference call will be available to the public on a listen-only basis and can be accessed through the Events tab in the Shareholders section of our website at www.midcapfinancialic.com. Following the call, you may access a replay of the event either telephonically or via audio webcast. The telephonic replay will be available approximately two hours after the live call and through March 19, 2025, by dialing (800) 839-5123; international callers should dial (402) 220-2689. A replay of the audio webcast will also be available later that same day. To access the audio webcast please visit the Events Calendar in the Shareholders section of our website at www.midcapfinancialic.com.

SUPPLEMENTAL INFORMATION

The Company provides a supplemental information package to offer more transparency into its financial results and make its reporting more informative and easier to follow. The supplemental package is available in the Shareholders section of the Company’s website under Presentations at www.midcapfinancialic.com.

Our portfolio composition and weighted average yields as of December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023 were as follows:

	December 31, 2024			September 30, 2024	June 30, 2024		March 31, 2024		December 31, 2023
Portfolio composition, at fair value:
First lien secured debt		92%		91%		90%		90%		89%
Second lien secured debt		1%		1%		1%		1%		1%
Total secured debt		93%		92%		91%		91%		90%
Unsecured debt		0%		0%		—%		—%		—%
Structured products and other		1%		2%		1%		1%		2%
Preferred equity		1%		1%		1%		1%		1%
Common equity/interests and warrants		5%		5%		7%		7%		7%
Weighted average yields, at amortized cost (1):
First lien secured debt (2)		10.8%		11.1%		11.9%		12.0%		12.1%
Second lien secured debt (2)		14.4%		14.0%		14.1%		14.1%		13.7%
Total secured debt (2)		10.8%		11.1%		11.9%		12.0%		12.1%
Unsecured debt portfolio (2)		9.5%		9.5%		—%		—%		—%
Total debt portfolio (2)		10.8%		11.1%		11.9%		12.0%		12.1%
Total portfolio (3)		9.5%		9.6%		9.9%		10.0%		10.1%
Interest rate type, at fair value (4):
Fixed rate amount	$	0.0 billion	$	0.0 billion	$	0.0 billion	$	0.0 billion	$	0.0 billion
Floating rate amount	$	2.7 billion	$	2.7 billion	$	2.1 billion	$	2.0 billion	$	2.0 billion
Fixed rate, as percentage of total		1%		1%		0%		0%		0%
Floating rate, as percentage of total		99%		99%		100%		100%		100%
Interest rate type, at amortized cost (4):
Fixed rate amount	$	0.0 billion	$	0.0 billion	$	0.0 billion	$	0.0 billion	$	0.0 billion
Floating rate amount	$	2.7 billion	$	2.7 billion	$	2.1 billion	$	2.0 billion	$	2.0 billion
Fixed rate, as percentage of total		1%		1%		0%		0%		0%
Floating rate, as percentage of total		99%		99%		100%		100%		100%

(1)	An investor’s yield may be lower than the portfolio yield due to sales loads and other expenses.
(2)	Exclusive of investments on non-accrual status.
(3)	Inclusive of all income generating investments, non-income generating investments and investments on non-accrual status.
(4)	The interest rate type information is calculated using the Company’s corporate debt portfolio and excludes aviation and investments on non-accrual status.


MIDCAP FINANCIAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (In thousands, except share and per share data)

	December 31, 2024			December 31, 2023

Assets
Investments at fair value:
Non-controlled/non-affiliated investments (cost — $2,700,957 and $2,012,273, respectively)	$	2,605,329		$	1,936,327
Non-controlled/affiliated investments (cost — $142,686 and $130,648, respectively)		84,334			77,528
Controlled investments (cost — $333,754 and $395,221, respectively)		324,753			320,344
Cash and cash equivalents		74,357			93,575
Foreign currencies (cost — $1,487 and $28,563, respectively)		1,429			28,553
Receivable for investments sold		57,195			2,796
Interest receivable		19,289			21,441
Dividends receivable		709			1,327
Deferred financing costs		23,555			19,435
Prepaid expenses and other assets		—			5
Total Assets	$	3,190,950		$	2,501,331

Liabilities
Debt	$	1,751,621		$	1,462,267
Payable for investments purchased		4,190			—
Management fees payable		6,247			4,397
Performance-based incentive fees payable		5,336			6,332
Interest payable		12,813			14,494
Accrued administrative services expense		60			1,657
Other liabilities and accrued expenses		6,037			6,874
Total Liabilities	$	1,786,304		$	1,496,021
Commitments and contingencies (Note 9)
Net Assets	$	1,404,646		$	1,005,310

Net Assets
Common stock, $0.001 par value (130,000,000 shares authorized; 93,780,278 and 65,253,275 shares issued and outstanding, respectively)	$	94		$	65
Capital in excess of par value		2,658,090			2,103,718
Accumulated under-distributed (over-distributed) earnings		(1,253,538	)		(1,098,473	)
Net Assets	$	1,404,646		$	1,005,310

Net Asset Value Per Share	$	14.98		$	15.41


MIDCAP FINANCIAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data)

	Year Ended December 31,						Nine Months Ended December 31,
	2024			2023			2022
Investment Income
Non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind (“PIK”) interest income)	$	265,157		$	249,102		$	143,564
Dividend income		40			409			61
PIK interest income		12,011			2,012			1,156
Other income		4,147			3,727			2,234
Non-controlled/affiliated investments:
Interest income (excluding PIK interest income)		2,685			1,126			363
Dividend income		726			1,010			718
PIK interest income		140			125			58
Controlled investments:
Interest income (excluding PIK interest income)		16,781			17,892			25,530
PIK interest income		—			869			1,448
Other income		95			250			477
Total Investment Income	$	301,782		$	276,522		$	175,609
Expenses
Management fees	$	19,450		$	17,369		$	26,621
Performance-based incentive fees		21,548			24,565			5,691
Interest and other debt expenses		115,961			104,198			59,363
Administrative services expense		4,120			5,840			4,188
Other general and administrative expenses		8,176			10,131			6,551
Total expenses		169,255			162,103			102,414
Performance-based incentive fee offset		—			(274	)		(178	)
Expense reimbursements		(769	)		(1,306	)		(770	)
Net Expenses	$	168,486		$	160,523		$	101,466
Net Investment Income	$	133,296		$	115,999		$	74,143
Net Realized and Change in Unrealized Gains (Losses)
Net realized gains (losses):
Non-controlled/non-affiliated investments	$	(4,273	)	$	131		$	1,977
Non-controlled/affiliated investments		(11,668	)		—			(2,224	)
Controlled investments		(60,487	)		—			(69,265	)
Foreign currency transactions		(592	)		69			273
Net realized gains (losses)		(77,020	)		200			(69,239	)
Net change in unrealized gains (losses):
Non-controlled/non-affiliated investments		(19,626	)		(1,326	)		(35,113	)
Non-controlled/affiliated investments		(5,232	)		3,799			(5,008	)
Controlled investments		65,876			2,636			53,726
Foreign currency translations		1,525			(2,548	)		4,431
Net change in unrealized gains (losses)		42,543			2,561			18,036
Net Realized and Change in Unrealized Gains (Losses)	$	(34,477	)	$	2,761		$	(51,203	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	98,819		$	118,760		$	22,940
Earnings (Loss) Per Share — Basic		1.27			1.82			0.36

Important Information

Investors are advised to carefully consider the investment objective, risks, charges and expenses of the Company before investing. The prospectus dated April 12, 2023, which has been filed with the Securities and Exchange Commission (“SEC”), contains this and other information about the Company and should be read carefully before investing. An effective shelf registration statement relating to certain securities of the Company is on file with the SEC. Any offering may be made only by means of a prospectus and any accompanying prospectus supplement. Before you invest, you should read the base prospectus in that registration statement, the prospectus and any documents incorporated by reference therein, which the issuer has filed with the SEC, for more complete information about the Company and an offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov.

The information in the prospectus and in this announcement is not complete and may be changed. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

Past performance is not indicative of, or a guarantee of, future performance. The performance and certain other portfolio information quoted herein represents information as of dates noted herein. Nothing herein shall be relied upon as a representation as to the future performance or portfolio holdings of the Company. Investment return and principal value of an investment will fluctuate, and shares, when sold, may be worth more or less than their original cost. The Company’s performance is subject to change since the end of the period noted in this report and may be lower or higher than the performance data shown herein.

About MidCap Financial Investment Corporation

MidCap Financial Investment Corporation (NASDAQ: MFIC) is a closed-end, externally managed, diversified management investment company that has elected to be treated as a business development company (“BDC”) under the 1940 Act. For tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). The Company is externally managed by the Investment Adviser, an affiliate of Apollo Global Management, Inc. and its consolidated subsidiaries (“Apollo”), a high-growth global alternative asset manager. The Company’s investment objective is to generate current income and, to a lesser extent, long-term capital appreciation. The Company primarily invests in directly originated and privately negotiated first lien senior secured loans to privately held U.S. middle-market companies, which the Company generally defines as companies with less than $75 million in EBITDA, as may be adjusted for market disruptions, mergers and acquisitions-related charges and synergies, and other items. To a lesser extent, the Company may invest in other types of securities including, first lien unitranche, second lien senior secured, unsecured, subordinated, and mezzanine loans, and equities in both private and public middle market companies. For more information, please visit www.midcapfinancialic.com.

Forward-Looking Statements

Some of the statements in this press release constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to: future operating results of MFIC and distribution projections; business prospects of MFIC, and the prospects of its portfolio companies, if applicable; and the impact of the investments that MFIC expects to make. In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this press release involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with: future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); changes in general economic conditions, including the impact of supply chain disruptions, or changes in financial markets, and the risk of recession; changes in the interest rate environment and levels of general interest rates and the impact of inflation; the return on equity; the yield on investments; the ability to borrow to finance assets; new strategic initiatives; the ability to reposition the investment portfolio; the market outlook; future investment activity; and risks associated with changes in business conditions and the general economy. MFIC has based the forward-looking statements included in this press release on information available to it on the date hereof, and assumes no obligation to update any such forward-looking statements. Although MFIC undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that they may make directly to you or through reports that MFIC in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

Contact

Elizabeth Besen
Investor Relations Manager
MidCap Financial Investment Corporation
212.822.0625
ebesen@apollo.com

The MIL Network –

February 26, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

Management will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, March 7, 2025. To participate in the conference call, please dial (844) 808-7136 approximately 10 minutes prior to the call. International callers should dial (412) 317-0534. Please ask to be joined into the Fidus Investment Corporation call.

A live webcast of the conference call will be available at https://investor.fdus.com/news-events/events-presentations. Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software.

A webcast replay of the conference call will be available two hours after the call on the investor relations section of the Company’s website.

ABOUT FIDUS INVESTMENT CORPORATION

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

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

FORWARD-LOOKING STATEMENTS

This press release may contain certain forward-looking statements which are based upon current expectations and are inherently uncertain, including, but not limited to, statements about the future performance and financial condition of the Company, the prospects of our existing and prospective portfolio companies, the financial condition and ability of our existing and prospective portfolio companies to achieve their objectives, and the timing, form and amount of any distributions or supplemental dividends in the future. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control, and that the Company may or may not have considered, such as changes in the financial and lending markets and the impact of interest rate volatility, including the decommissioning of LIBOR and rising interest rates; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future as a result of a number of factors related to changes in the markets in which the Company invests, changes in the financial, capital, and lending markets, and other factors described from time to time in the Company’s filings with the Securities and Exchange Commission. Such statements speak only as of the time when made, and are based on information available to the Company as of the date hereof and are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to update any such statement now or in the future, except as required by applicable law.

The MIL Network –

February 26, 2025

MIL-OSI: Skyward Specialty Insurance Group Reports Fourth Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

HOUSTON, Feb. 25, 2025 (GLOBE NEWSWIRE) — Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) (“Skyward Specialty” or the “Company”) today reported fourth quarter 2024 net income of $14.4 million, or $0.35 per diluted share, compared to $29.3 million, or $0.74 per diluted share, for the same 2023 period. Net income for the year ended 2024 was $118.8 million, or $2.87 per diluted share, compared to $86.0 million, or $2.24 per diluted share, for the same 2023 period.

Adjusted operating income⁽¹⁾ for the fourth quarter of 2024 was $33.2 million, or $0.80 per diluted share, compared to $24.3 million, or $0.61 per diluted share, for the same 2023 period. Adjusted operating income⁽¹⁾ for the year ended 2024 was $126.7 million, or $3.06 per diluted share, compared to $80.8 million, or $2.11 per diluted share, for the same 2023 period.

Highlights for the fourth quarter included:

Gross written premiums of $388.4 million, an increase of $66.8 million, or 20.8%, when compared to 2023;
Adjusted combined ratio⁽¹⁾ of 91.6%, including catastrophe losses of 2.2 points;
Return on equity of 16.3% for the year ended 2024 compared to 15.9% for the same 2023 period;
Adjusted return on equity⁽¹⁾ of 17.4% for the year ended 2024 compared to 14.9% for the same 2023 period; and,
Book value per share of $19.79, an increase of 18% compared to December 31, 2023.

^{(1) See “Reconciliation of Non-GAAP Financial Measures”}

Skyward Specialty Chairman and CEO Andrew Robinson commented, “We wrapped up another remarkable year for Skyward Specialty, delivering both outstanding underwriting results while growing gross written premiums at over 20% for the quarter and 19% for the full year, with six out of eight divisions growing double-digits over the prior year. Our 16.3% return on equity for the year was again an excellent outcome. Throughout 2024 we continued to thoughtfully diversify our product portfolio, strategically launching new units including Media Liability, Life Sciences, Mortgage and Credit, and Renewable Energy. Our focus and disciplined execution of our “Rule Our Niche” strategy, and the extraordinary efforts of my 600 plus colleagues made 2024 another impressive year for our Company, and we are confident that we have built the foundation that will propel us in 2025 and beyond.”

Results of Operations

Underwriting Results

Premiums
($ in thousands)	Three months ended December 31,								Twelve months ended December 31,
unaudited	2024			2023			% Change		2024			2023			% Change
Gross written premiums	$	388,355		$	321,605		20.8	%	$	1,743,232		$	1,459,829		19.4	%
Ceded written premiums	$	(117,328	)	$	(107,488	)	9.2	%	$	(619,654	)	$	(549,138	)	12.8	%
Net retention		69.8	%		66.6	%	NM⁽¹⁾			64.5	%		62.4	%	NM⁽¹⁾
Net written premiums	$	271,027		$	214,117		26.6	%	$	1,123,578		$	910,691		23.4	%
Net earned premiums	$	293,240		$	224,932		30.4	%	$	1,056,722		$	829,143		27.4	%
⁽¹⁾Not meaningful

The increase in gross written premiums for the fourth quarter and year ended 2024, when compared to the same 2023 periods, was driven by double-digit premium growth primarily from our surety, programs, captives, global property & agriculture and transactional E&S underwriting divisions.

Combined Ratio	Three months ended December 31,				Twelve months ended December 31,
(unaudited)	2024		2023		2024		2023
Non-cat loss and LAE	60.5	%	60.9	%	60.6	%	60.9	%
Cat loss and LAE⁽¹⁾	2.2	%	0.4	%	1.7	%	1.4	%
Prior accident year development – LPT⁽²⁾	4.2	%	(0.2	)%	1.1	%	(0.2	)%
Loss Ratio	66.9	%	61.1	%	63.4	%	62.1	%
Net policy acquisition costs	15.3	%	13.4	%	14.2	%	13.0	%
Other operating and general expenses	13.9	%	16.3	%	15.3	%	16.3	%
Commission and fee income	(0.3	)%	(0.1	)%	(0.6	)%	(0.7	)%
Expense ratio	28.9	%	29.6	%	28.9	%	28.6	%
Combined ratio	95.8	%	90.7	%	92.3	%	90.7	%
Ex-Cat Combined Ratio⁽³⁾	93.6	%	90.3	%	90.6	%	89.3	%

Adjusted Underwriting Ratios
Adjusted loss ratio⁽²⁾	62.7	%	61.3	%	62.3	%	62.3	%
Expense ratio	28.9	%	29.6	%	28.9	%	28.6	%
Adjusted combined ratio⁽²⁾	91.6	%	90.9	%	91.2	%	90.9	%
⁽¹⁾Current accident year
⁽²⁾See “Reconciliation of Non-GAAP Financial Measures”
⁽³⁾Defined as the combined ratio excluding cat loss and LAE⁽¹⁾

The loss ratios for the fourth quarter and year ended 2024 increased 5.8 points and 1.3 points, respectively, when compared to the same 2023 periods, primarily due to the net impact of prior accident year development related to the LPT. The fourth quarter and year ended 2024 were also impacted by higher catastrophe losses, primarily from Hurricane Milton in the fourth quarter of 2024 and Hurricanes Helene and Beryl in the third quarter of 2024. The improvement in the non-cat loss and LAE ratios for the fourth quarter and year ended 2024, when compared to the same 2023 periods, was driven by the business mix shift.

The expense ratio for the fourth quarter improved when compared to the same 2023 period primarily due to earnings leverage partially offset by the business mix shift. The expense ratio for the year ended 2024 increased slightly when compared to the same 2023 period, driven by the business mix shift.

The expense ratios for all periods presented exclude the impact of IPO related stock compensation and secondary offering expenses, which are reported in other expenses in our condensed consolidated statements of operations and comprehensive income.

Investment Results

Net Investment Income
$ in thousands	Three months ended December 31,						Twelve months ended December 31,
(unaudited)	2024			2023			2024			2023
Short-term investments & cash and cash equivalents	$	3,998		$	3,670		$	17,643		$	11,677
Fixed income		15,909			11,680			57,631			36,547
Equities		771			880			2,745			2,212
Alternative & strategic investments		52			(2,226	)		2,667			(10,114	)
Net investment income	$	20,730		$	14,004		$	80,686		$	40,322
Net unrealized (losses) gains on securities still held	$	(7,688	)	$	8,736		$	7,921		$	11,130
Net realized losses		(2,721	)		(992	)		(1,665	)		(58	)
Net investment (losses) gains	$	(10,409	)	$	7,744		$	6,256		$	11,072

Beginning January 1, 2024 we simplified the investment portfolio classifications to align with our strategy and the underlying risk characteristics of the portfolio. The prior period has been reclassified to conform to the current period presentation.

Net investment income for the fourth quarter and year ended 2024 increased $6.7 million and $40.4 million, respectively when compared to the same 2023 periods, primarily driven by (i) increased income from our fixed income portfolio and short-term investments due to higher yields and larger asset bases, and (ii) income from alternative and strategic investments compared to losses for the same 2023 periods, which were impacted by the decline in the fair value of limited partnership investments.

Stockholders’ Equity

Stockholders’ equity was $794.0 million at December 31, 2024 which represented a decrease of 0.4% when compared to stockholders’ equity of $797.5 million at September 30, 2024. The decrease in stockholders’ equity was primarily due to a decline in the market value of our investment portfolio partially offset by net income.

Conference Call

At 9:30 a.m. eastern time tomorrow, February 26, 2025, Skyward Specialty management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion at investors.skywardinsurance.com under Events & Presentations. Additionally, investors can access the earnings call via conference call by registering via the conference link. Users will receive dial-in information and a unique PIN to join the call upon registering.

Non-GAAP Financial Measures

This release contains certain financial measures and ratios that are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). We refer to these measures as “non-GAAP financial measures.” We use these non-GAAP financial measures when planning, monitoring, and evaluating our performance.

We have chosen to exclude the net impact of the Loss Portfolio Transfer (“LPT”), all development on reserves fully or partially covered by the LPT and amortization of deferred gains associated with recoveries of prior LPT reserve strengthening in certain non-GAAP metrics, where noted, as the business subject to the LPT is not representative of our continuing business strategy. The business subject to the LPT is primarily related to policy years 2017 and prior, was generated and managed under prior leadership, and has either been exited or substantially repositioned during the reevaluation of our portfolio. The LPT was commuted effective January 31, 2025. We consider these non-GAAP financial measures to be useful metrics for our management and investors to facilitate operating performance comparisons from period to period. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered supplemental in nature and is not meant to be a substitute for revenue or net income, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as comparative measures. For more information regarding these non-GAAP financial measures and a reconciliation of such measures to comparable GAAP financial measures, see the section entitled “Reconciliation of Non-GAAP Financial Measures.”

About Skyward Specialty Insurance Group, Inc.

Skyward Specialty is a rapidly growing and innovative specialty insurance company, delivering commercial property and casualty products and solutions on a non-admitted and admitted basis. The Company operates through eight underwriting divisions – Accident & Health, Captives, Global Property & Agriculture, Industry Solutions, Professional Lines, Programs, Surety and Transactional E&S. SKWD stock is traded on the Nasdaq Global Select Market, which represents the top fourth of all Nasdaq listed companies.

Skyward Specialty’s subsidiary insurance companies consist of Houston Specialty Insurance Company, Imperium Insurance Company, Great Midwest Insurance Company, and Oklahoma Specialty Insurance Company. These insurance companies are rated A (Excellent) with stable outlook by A.M. Best Company. Additional information about Skyward Specialty can be found on our website at www.skywardinsurance.com.

Forward-Looking Statements

Except for historical information, all other information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are typically, but not always, identified through use of the words “believe,” “expect,” “enable,” “may,” “will,” “could,” “intends,” “estimate,” “anticipate,” “plan,” “predict,” “probable,” “potential,” “possible,” “should,” “continue,” and other words of similar meaning. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. The most significant of these uncertainties are described in Skyward Specialty’s Form 10-K, and include (but are not limited to) legislative changes at both the state and federal level, state and federal regulatory rule making promulgations and adjudications, class action litigation involving the insurance industry and judicial decisions affecting claims, policy coverages and the general costs of doing business, the potential loss of key members of our management team or key employees and our ability to attract and retain personnel, the impact of competition on products and pricing, inflation in the costs of the products and services insurance pays for, product development, geographic spread of risk, weather and weather-related events, other types of catastrophic events, our ability to obtain reinsurance coverage at prices and on terms that allow us to transfer risk and adequately protect our company against financial loss, and losses resulting from reinsurance counterparties failing to pay us on reinsurance claims. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Skyward Specialty Insurance Group, Inc.

Investor contact:
Natalie Schoolcraft,
nschoolcraft@skywardinsurance.com
614-494-4988

or

Media contact:
Haley Doughty
hdoughty@skywardinsurance.com
713-935-4944

Consolidated Balance Sheets
($ in thousands, except share and per share amounts)
(unaudited)	December 31, 2024			December 31, 2023
Assets
Investments:
Fixed maturity securities, available-for-sale, at fair value (amortized cost of $1,320,266 and $1,047,713, respectively)	$	1,292,218		$	1,017,651
Fixed maturity securities, held-to-maturity, at amortized cost (net of allowance for credit losses of $243 and $329, respectively)		39,153			42,986
Equity securities, at fair value		106,254			118,249
Mortgage loans, at fair value		26,490			50,070
Equity method investments		98,594			110,653
Other long-term investments		33,182			3,852
Short-term investments, at fair value		274,929			270,226
Total investments		1,870,820			1,613,687
Cash and cash equivalents		121,603			65,891
Restricted cash		35,922			34,445
Premiums receivable, net		321,641			179,235
Reinsurance recoverables, net		857,876			596,334
Ceded unearned premium		203,901			186,121
Deferred policy acquisition costs		113,183			91,955
Deferred income taxes		30,486			21,991
Goodwill and intangible assets, net		87,348			88,435
Other assets		86,698			75,341
Total assets	$	3,729,478		$	2,953,435
Liabilities and stockholders’ equity
Liabilities:
Reserves for losses and loss adjustment expenses	$	1,782,383		$	1,314,501
Unearned premiums		637,185			552,532
Deferred ceding commission		40,434			37,057
Reinsurance and premium payables		177,070			150,156
Funds held for others		102,665			58,588
Accounts payable and accrued liabilities		76,206			50,880
Notes payable		100,000			50,000
Subordinated debt, net of debt issuance costs		19,536			78,690
Total liabilities		2,935,479			2,292,404
Stockholders’ equity
Common stock, $0.01 par value, 500,000,000 shares authorized, 40,127,908 and 39,863,756 shares issued and outstanding, respectively		401			399
Additional paid-in capital		718,598			710,855
Stock notes receivable		—			(5,562	)
Accumulated other comprehensive loss		(22,120	)		(22,953	)
Retained earnings (accumulated deficit)		97,120			(21,708	)
Total stockholders’ equity		793,999			661,031
Total liabilities and stockholders’ equity	$	3,729,478		$	2,953,435

Condensed Consolidated Statements of Operations and Comprehensive Income
($ in thousands)	Three months ended December 31,						Twelve months ended December 31,
(unaudited)	2024			2023			2024			2023

Revenues:
Net earned premiums	$	293,240		$	224,932		$	1,056,722		$	829,143
Commission and fee income		806			247			6,703			6,064
Net investment income		20,730			14,004			80,686			40,322
Net investment (losses) gains		(10,409	)		7,744			6,256			11,072
Other income (loss)		35			(632	)		(167	)		(632	)
Total revenues		304,402			246,295			1,150,200			885,969
Expenses:
Losses and loss adjustment expenses		196,320			137,396			669,809			515,237
Underwriting, acquisition and insurance expenses		85,487			66,791			311,757			243,444
Interest expense		2,091			2,774			9,496			10,024
Amortization expense		908			462			2,007			1,798
Other expenses		1,042			1,303			4,392			5,364
Total expenses		285,848			208,726			997,461			775,867
Income before income taxes		18,554			37,569			152,739			110,102
Income tax expense		4,148			8,304			33,911			24,118
Net income		14,406			29,265			118,828			85,984
Net income attributable to participating securities		—			—			—			1,677
Net income attributable to common stockholders	$	14,406		$	29,265		$	118,828		$	84,307
Comprehensive income:
Net income	$	14,406		$	29,265		$	118,828		$	85,984
Other comprehensive income:
Unrealized gains and losses on investments:
Net change in unrealized (losses) gains on investments, net of tax		(14,735	)		30,825			9,792			25,516
Reclassification adjustment for losses on securities no longer held, net of tax		(5,682	)		(105	)		(8,959	)		(4,984	)
Total other comprehensive (loss) income		(20,417	)		30,720			833			20,532
Comprehensive (loss) income	$	(6,011	)	$	59,985		$	119,661		$	106,516

Share and Per Share Data
($ in thousands, except share and per share amounts)	Three months ended December 31,						Twelve months ended December 31,
(unaudited)	2024			2023			2024			2023

Weighted average basic shares		40,107,617			37,570,274			40,056,475			36,031,907
Weighted average diluted shares		41,622,397			39,582,352			41,377,460			38,317,534

Basic earnings per share	$	0.36		$	0.78		$	2.97		$	2.34
Diluted earnings per share	$	0.35		$	0.74		$	2.87		$	2.24
Basic adjusted operating earnings per share	$	0.83		$	0.65		$	3.16		$	2.20
Diluted adjusted operating earnings per share	$	0.80		$	0.61		$	3.06		$	2.11

Annualized ROE ⁽¹⁾		7.2	%		19.6	%		16.3	%		15.9	%
Annualized adjusted ROE ⁽²⁾		16.7	%		16.3	%		17.4	%		14.9	%
Annualized ROTE ⁽³⁾		8.1	%		23.0	%		18.6	%		19.0	%
Annualized adjusted ROTE ⁽⁴⁾		18.8	%		19.1	%		19.8	%		17.9	%

							December 31			December 31
							2024			2023

Shares outstanding								40,127,908			39,863,756
Fully diluted shares outstanding								42,059,182			41,771,854

Book value per share							$	19.79		$	16.72
Fully diluted book value per share							$	18.88		$	15.96
Fully diluted tangible book value per share							$	16.80		$	13.84

⁽¹⁾Annualized ROE is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period
⁽²⁾Annualized adjusted ROE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period
⁽³⁾Annualized ROTE is net income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders’ equity during the period
⁽⁴⁾Annualized adjusted ROTE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders’ equity during the period

Adjusted operating income – We define adjusted operating income as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We use adjusted operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define adjusted operating income differently.

($ in thousands)	Three months ended December 31,												Twelve months ended December 31,
(unaudited)	2024						2023						2024						2023
	Pre-tax			After-tax			Pre-tax			After-tax			Pre-tax			After-tax			Pre-tax			After-tax
Income as reported	$	18,554		$	14,406		$	37,569		$	29,265		$	152,739		$	118,828		$	110,102		$	85,984
Less (add):
Net investment (losses) gains		(10,409	)		(8,223	)		7,744			6,118			6,256			4,942			11,072			8,747
Net impact of loss portfolio transfer		(12,398	)		(9,794	)		457			361			(11,598	)		(9,162	)		1,427			1,127
Other loss		35			28			(632	)		(499	)		(167	)		(132	)		(632	)		(499	)
Other expenses		(1,042	)		(823	)		(1,303	)		(1,029	)		(4,392	)		(3,470	)		(5,364	)		(4,238	)
Adjusted operating income	$	42,368		$	33,218		$	31,303		$	24,314		$	162,640		$	126,650		$	103,599		$	80,847

Underwriting income – We define underwriting income as net income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, impairment charges, interest expense, amortization expense and other income and expenses. Underwriting income represents the pre-tax profitability of our underwriting operations and allows us to evaluate our underwriting performance without regard to investment income. We use this metric as we believe it gives our management and other users of our financial information useful insight into our underlying business performance. Underwriting income should not be viewed as a substitute for pre-tax income calculated in accordance with GAAP, and other companies may define underwriting income differently.

($ in thousands)	Three months ended December 31,						Twelve months ended December 31,
(unaudited)	2024			2023			2024			2023
Income before income taxes	$	18,554		$	37,569		$	152,739		$	110,102
Add:
Interest expense		2,091			2,774			9,496			10,024
Amortization expense		908			462			2,007			1,798
Other expenses		1,042			1,303			4,392			5,364
Less (add):
Net investment income		20,730			14,004			80,686			40,322
Net investment (losses) gains		(10,409	)		7,744			6,256			11,072
Other income (loss)		35			(632	)		(167	)		(632	)
Underwriting income	$	12,239		$	20,992		$	81,859		$	76,526

Adjusted Loss Ratio / Adjusted Combined Ratio – We define adjusted loss ratio and adjusted combined ratio as the corresponding ratio (calculated in accordance with GAAP), excluding losses and LAE related to the LPT and all development on reserves fully or partially covered by the LPT and amortization of deferred gains associated with recoveries of prior LPT reserve strengthening. We use these adjusted ratios as internal performance measures in the management of our operations because we believe they give our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Our adjusted loss ratio and adjusted combined ratio should not be viewed as substitutes for our loss ratio and combined ratio, respectively.

($ in thousands)	Three months ended December 31,						Twelve months ended December 31,
(unaudited)	2024			2023			2024			2023
Net earned premiums	$	293,240		$	224,932		$	1,056,722		$	829,143

Losses and LAE		196,320			137,396			669,809			515,237
Less: Pre-tax net impact of LPT		12,398			(457	)		11,598			(1,427	)
Adjusted losses and LAE	$	183,922		$	137,853		$	658,211		$	516,664

Loss ratio		66.9	%		61.1	%		63.4	%		62.1	%
Less: net impact of LPT		4.2	%		(0.2	)%		1.1	%		(0.2	)%
Adjusted loss ratio		62.7	%		61.3	%		62.3	%		62.3	%

Combined ratio		95.8	%		90.7	%		92.3	%		90.7	%
Less: net impact of LPT		4.2	%		(0.2	)%		1.1	%		(0.2	)%
Adjusted combined ratio		91.6	%		90.9	%		91.2	%		90.9	%

Tangible Stockholders’ Equity – We define tangible stockholders’ equity as stockholders’ equity less goodwill and intangible assets. Our definition of tangible stockholders’ equity may not be comparable to that of other companies and should not be viewed as a substitute for stockholders’ equity calculated in accordance with GAAP. We use tangible stockholders’ equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure.

($ in thousands)	December 31,
(unaudited)	2024		2023
Stockholders’ equity	$	793,999	$	661,031
Less: Goodwill and intangible assets		87,348		88,435
Tangible stockholders’ equity	$	706,651	$	572,596

	Three months ended December 31,						Twelve months ended December 31,
($ in thousands)	2024		2023		% Change		2024		2023		% Change
Industry Solutions		80,738		78,796	2.5	%		317,198		305,476	3.8	%
Global Property & Agriculture	$	31,681	$	25,996	21.9	%	$	311,402	$	273,191	14.0	%
Captives		57,765		40,375	43.1	%		241,902		167,624	44.3	%
Programs		52,151		35,694	46.1	%		218,407		178,726	22.2	%
Accident & Health		44,594		38,882	14.7	%		173,073		151,701	14.1	%
Transactional E&S		36,262		31,560	14.9	%		169,053		122,508	38.0	%
Professional Lines		39,130		40,145	(2.5	)%		159,785		154,565	3.4	%
Surety		46,034		30,157	52.6	%		152,429		106,056	43.7	%
Total gross written premiums⁽¹⁾	$	388,355	$	321,605	20.8	%	$	1,743,249	$	1,459,847	19.4	%
⁽¹⁾Excludes exited business

The MIL Network –

February 26, 2025

MIL-OSI: Flywire Acquires Sertifi to Accelerate Travel Business and Expand Offering to Support Over 20,000 Hotel Locations Globally

Source: GlobeNewswire (MIL-OSI)

Acquisition expands Flywire’s travel footprint into new subsegments of travel & hospitality, including large-scale branded hotels, luxury hotels, and boutique accommodations

Sertifi augments Flywire’s travel payments technology with dedicated hotel software integrations into large, global Property Management Systems and Events & Catering systems to automate critical hospitality workflow processes

Flywire gains the opportunity to accelerate the monetization of several billion dollars of payments volume that Sertifi’s platform has enabled annually

BOSTON, Feb. 25, 2025 (GLOBE NEWSWIRE) — Today, Flywire Corporation (Flywire) (Nasdaq: FLYW) a global payments enablement and software company, announced that it has acquired Sertifi, a vertical software and payments platform digitizing hospitality-specific workflows and associated payments. The acquisition is expected to build on Flywire’s existing Travel payments business by adding a new product category that has scaled adoption among some of the world’s largest hotel brands. Sertifi’s hospitality-specific integrations give Flywire immediate access to new subsegments of the global travel industry and they are expected to create additional value for Flywire’s extensive client roster. Sertifi has a successful track record of digitizing hotels’ workflows around events and group booking sales, and a solution that Flywire is expected to scale internationally by leveraging the strength of Flywire’s global go-to-market and partnership expertise around the world. Flywire acquired Sertifi for $330 million funded by a combination of cash and debt.

Sertifi provides a SaaS platform for the hotel and hospitality industry that empowers both global brands – like Marriott, Hilton, and Hyatt – as well as luxury independent hotels – like the Sage Hospitality Group and the Corinthia Hotel, London – to efficiently and securely sign contracts, exchange payment details in an industry-compliant way, and complete payments with their customers. Sertifi does this through deep integrations with leading Catering and Property Management Systems such as Amadeus’s Delphi, Salesforce, Oracle’s OPERA Cloud and OPERA 5, and Infor. Sertifi brings nearly two decades of experience in the hospitality and travel space and a diverse client base that spans 20,000 unique hospitality locations, and was recently named the “Best Payments Processing Software” in the 2025 HotelTechAwards for the second year in a row.

“The acquisition of Sertifi represents an exciting next phase of growth for our Travel vertical, where our deep industry expertise and global footprint continue to be key differentiators,” said Mike Massaro, CEO of Flywire. “By expanding into a large new subsegment of the hospitality industry with strong ecosystem alignment, and gaining a software solution in the early stages of its payments monetization journey, we are unlocking new growth and innovation opportunities for Flywire.”

Sertifi has executed on a unique opportunity in hotel workflows to put itself at the nexus of these powerful trends and capitalize on the secular growth in event bookings. The company’s solution simplifies and streamlines events contracting, group bookings, and their associated payments, empowering hotel sales staff to sell faster and deliver a better level of service to their consumers. Sertifi’s deep integrations into the hotel Property Management Systems place it in a unique position to act simultaneously as a revenue-maximizing tool and partner for further innovation to hotel operators everywhere. Flywire’s Travel leadership has developed leading direct distribution capabilities that could accelerate adoption of the Sertifi solution by hotels internationally.

Historically growing in double digits, Sertifi is expected to grow faster than Flywire’s company average, similar to its existing, fast-growing travel business. Flywire expects Sertifi to add approximately $35-40M of revenue with gross margins similar to those of Flywire in FY 2025. On the bottom line, Flywire expects Sertifi to have positive Adjusted EBITDA, however the anticipated margin percentage will be lower than Flywire’s overall Adjusted EBITDA margin, especially as Flywire expects to invest to grow the combined business for the future. More details will be shared on the upcoming earnings call scheduled for February 25th 2025.

Resources

To learn more about Sertifi and to get a demo, please visit here.
To learn more about Flywire’s solutions for the global Travel industry, please visit here.

About Flywire

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

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

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

Safe Harbor Statement

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding Flywire’s expectations regarding the expected benefits and synergies of the acquisition of Sertifi, the benefits of Sertifi’s platform, financial results and margins, Flywire’s business strategy and plans, market size, growth and trends. Flywire intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terms such as, but not limited to, “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. Such forward-looking statements are based upon current expectations that involve risks, changes in circumstances, assumptions, and uncertainties. Important factors that could cause actual results to differ materially from those reflected in Flywire’s forward-looking statements include, among others, the factors that are described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Flywire’s Annual Report on Form 10-K for the year ended December 31, 2023, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, which are on file with the Securities and Exchange Commission (SEC) and available on the SEC’s website at https://www.sec.gov/. Additional factors may be described in those sections of Flywire’s Annual Report on Form 10-K for the year ended December 31, 2024, expected to be filed with the SEC in the first quarter of 2025. The information in this release is provided only as of the date of this release, and Flywire undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.

Contacts

Media Contact:

Sarah King
media@flywire.com

Investor Relations Contact:

Masha Kahn
IR@flywire.com

The MIL Network –

February 26, 2025

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

Source: GlobeNewswire (MIL-OSI)

CHICAGO, Feb. 25, 2025 (GLOBE NEWSWIRE) — Sprout Social, Inc. (“Sprout Social”, the “Company”) (Nasdaq: SPT), an industry-leading provider of cloud-based social media management software, today announced financial results for its fourth quarter ended December 31, 2024.

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

Fourth Quarter 2024 Financial Highlights

Revenue

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

Operating Income (Loss)

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

Net Loss

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

Cash

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

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

Customer Metrics

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

Recent Customer Highlights

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

Recent Business Highlights

Sprout Social recently:

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

First Quarter and 2025 Financial Outlook

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

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

For the full year 2025, the Company currently expects:

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

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

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

Conference Call Information

The financial results and business highlights will be discussed on a conference call and webcast scheduled at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) today, February 25, 2025. Online registration for this event conference call can be found at https://registrations.events/direct/Q4I1913111787. The live webcast of the conference call can be accessed from Sprout Social’s investor relations website at http://investors.sproutsocial.com.

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

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

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “explore,””future,” “intend,” “long-term model,” “may,” “medium to longer term goals,” “might” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to our market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures and customer and financial growth rates, our Q1 2025 and full year 2025 financial outlook, our plans and objectives for future operations, growth, initiatives or strategies. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others: we may not be able to sustain our revenue and customer growth rate in the future, including due to risks associated with our strategic focus on enterprise customers; price increases have and may continue to negatively impact demand for our products, customer acquisition and retention and reduce the total number of customers or customer additions; our business would be harmed by any significant interruptions, delays or outages in services from our platform, our API providers, or certain social media platforms; if we are unable to attract potential customers through unpaid channels, convert this traffic to free trials or convert free trials to paid subscriptions, our business and results of operations may be adversely affected; we may be unable to successfully enter new markets, manage our international expansion and comply with any applicable international laws and regulations; we may be unable to integrate acquired businesses or technologies successfully or achieve the expected benefits of such acquisitions and investments; unstable market and economic conditions, such as recession risks, effects of inflation, labor shortages, supply chain issues, high interest rates, and the impacts of current and potential future bank failures and impacts of ongoing overseas conflicts, have and could continue to adversely impact our business and that of our existing and prospective customers, which may result in reduced demand for our products; we may not be able to generate sufficient cash to service our indebtedness; covenants in our credit agreement may restrict our operations, and if we do not effectively manage our business to comply with these covenants, our financial condition could be adversely impacted; any cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks on which we rely could negatively affect our business; changing regulations relating to privacy, information security and data protection could increase our costs, affect or limit how we collect and use personal information and harm our brand; and risks related to ongoing legal proceedings. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 23, 2024 and our Annual Report on Form 10-K for the year ended December 31, 2024, to be filed with the SEC as well as any future reports that we file with the SEC. Moreover, you should interpret many of the risks identified in those reports as being heightened as a result of the current instability in market and economic conditions. Forward-looking statements speak only as of the date the statements are made and are based on information available to Sprout Social at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Sprout Social assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Use of Non-GAAP Financial Measures

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

Non-GAAP gross profit. We define non-GAAP gross profit as GAAP gross profit, excluding stock-based compensation expense, amortization expense associated with the acquired developed technology from our acquisition of Tagger Media, Inc. (the “Tagger acquisition”) and restructuring charges. We believe non-GAAP gross profit provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of stock-based compensation, amortization expense and restructuring charges which are often unrelated to overall operating performance. During the fourth quarter of 2024, we revised our definition of non-GAAP gross profit to exclude restructuring charges associated with a workforce reorganization, consisting primarily of severance and other personnel-related costs.

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

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

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

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

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

Non-GAAP free cash flow. We define non-GAAP free cash flow as net cash provided by (used in) operating activities less expenditures for property and equipment, acquisition-related costs, interest and payments related to restructuring charges. Non-GAAP free cash flow does not reflect our future contractual obligations or represent the total increase or decrease in our cash balance for a given period. We believe non-GAAP free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash used in our core operations that, after expenditures for property and equipment, acquisition-related costs, interest and payments related to restructuring charges, is not available for strategic initiatives. During the fourth quarter of 2024, we revised our definition of non-GAAP free cash flow to exclude payments related to restructuring charges associated with a workforce reorganization.

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

Non-GAAP sales and marketing expenses, non-GAAP research and development expenses and non-GAAP general and administrative expenses. Non-GAAP sales and marketing expenses, non-GAAP research and development expenses and non-GAAP general and administrative expenses are defined as sales and marketing expenses, research and development expenses and general and administrative expenses, respectively, less stock-based compensation expense, acquisition-related expenses, restructuring charges and non-cash gains from lease modifications. We believe these non-GAAP measures provide our management and investors with insight into day-to-day operating expenses given that these measures eliminate the effect of stock-based compensation, acquisition-related expenses, restructuring charges and non-cash gains from lease modifications. During the fourth quarter of 2024, we revised our definition of non-GAAP general and administrative expenses to exclude restructuring charges associated with a workforce reorganization, consisting primarily of severance and other personnel-related costs, and non-cash gain related to an office lease modification.

Key Business Metrics

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

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

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

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

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

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

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

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

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

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

Contact

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

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


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

	Three Months Ended December 31,
	2024	2023
Revenue
Subscription	$ 105,922	$ 92,224
Professional services and other	1,168	1,360
Total revenue	107,090	93,584
Cost of revenue(1)
Subscription	23,094	20,597
Professional services and other	319	364
Total cost of revenue	23,413	20,961
Gross profit	83,677	72,623
Operating expenses
Research and development(1)	27,627	22,661
Sales and marketing(1)	45,889	47,380
General and administrative(1)	23,838	20,805
Total operating expenses	97,354	90,846
Loss from operations	(13,677)	(18,223)
Interest expense	(656)	(1,544)
Interest income	878	1,210
Other expense, net	(620)	(118)
Loss before income taxes	(14,075)	(18,675)
Income tax expense	342	1,402
Net loss	$ (14,417)	$ (20,077)
Net loss per share attributable to common shareholders, basic and diluted	$ (0.25)	$ (0.36)
Weighted-average shares outstanding used to compute net loss per share, basic and diluted	57,511,942	56,098,243

(1) Includes stock-based compensation expense as follows:

	Three Months Ended December 31,
	2024	2023
Cost of revenue	$ 1,046	$ 895
Research and development	6,640	5,529
Sales and marketing	7,017	7,770
General and administrative	7,750	4,465
Total stock-based compensation expense	$ 22,453	$ 18,659

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

	Twelve Months Ended December 31,
	2024	2023
Revenue
Subscription	$ 402,022	$ 330,458
Professional services and other	3,886	3,185
Total revenue	405,908	333,643
Cost of revenue(1)
Subscription	90,305	75,076
Professional services and other	1,170	1,192
Total cost of revenue	91,475	76,268
Gross profit	314,433	257,375
Operating expenses
Research and development(1)	102,794	79,550
Sales and marketing(1)	184,122	168,091
General and administrative(1)	87,873	79,011
Total operating expenses	374,789	326,652
Loss from operations	(60,356)	(69,277)
Interest expense	(3,525)	(2,754)
Interest income	3,973	7,021
Other expense, net	(1,393)	(768)
Loss before income taxes	(61,301)	(65,778)
Income tax expense	670	649
Net loss	$ (61,971)	$ (66,427)
Net loss per share attributable to common shareholders, basic and diluted	$ (1.09)	$ (1.19)
Weighted-average shares outstanding used to compute net loss per share, basic and diluted	56,935,910	55,664,404

(1) Includes stock-based compensation expense as follows:

	Twelve Months Ended December 31,
	2024	2023
Cost of revenue	$ 3,936	$ 3,224
Research and development	25,619	18,478
Sales and marketing	31,544	30,116
General and administrative	23,204	15,886
Total stock-based compensation expense	$ 84,303	$ 67,704

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


	December 31, 2024	December 31, 2023
Assets
Current assets
Cash and cash equivalents	$ 86,437	$ 49,760
Marketable securities	3,745	44,645
Accounts receivable, net of allowances of $2,169 and $2,177 at December 31, 2024 and December 31, 2023, respectively	84,033	63,489
Deferred Commissions	20,184	27,725
Prepaid expenses and other assets	15,816	10,324
Total current assets	210,215	195,943
Marketable securities, noncurrent	–	3,699
Property and equipment, net	10,951	11,407
Deferred commissions, net of current portion	51,653	26,240
Operating lease, right-of-use asset	11,326	8,729
Goodwill	121,315	121,404
Intangible assets, net	21,914	28,065
Other assets, net	967	1,098
Total assets	$ 428,341	$ 396,585
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$ 6,984	$ 6,933
Deferred revenue	178,585	140,536
Operating lease liability	3,747	3,948
Accrued wages and payroll related benefits	20,567	18,362
Accrued expenses and other	10,869	11,260
Total current liabilities	220,752	181,039
Revolving credit facility	25,000	55,000
Deferred revenue, net of current portion	1,101	920
Operating lease liability, net of current portion	14,543	15,083
Other non-current liabilities	351	351
Total liabilities	261,747	252,393

Stockholders’ equity

Class A common stock, par value $0.0001 per share; 1,000,000,000 shares authorized; 54,219,684 and 51,277,740 shares issued and outstanding, respectively, at December 31, 2024; 52,133,594 and 49,241,563 shares issued and outstanding, respectively, at December 31, 2023	4	4
Class B common stock, par value $0.0001 per share; 25,000,000 shares authorized; 6,687,582 and 6,480,638 shares issued and outstanding, respectively, at December 31, 2024; 7,201,140 and 6,994,196 shares issued and outstanding, respectively, at December 31, 2023	1	1
Additional paid-in capital	558,391	471,789
Treasury stock, at cost	(37,422)	(35,113)
Accumulated other comprehensive loss	3	(77)
Accumulated deficit	(354,383)	(292,412)
Total stockholders’ equity	166,594	144,192
Total liabilities and stockholders’ equity	$ 428,341	$ 396,585

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

	Three Months Ended December 31,
	2024	2023
Cash flows from operating activities
Net loss	$ (14,417)	$ (20,077)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization of property, equipment and software	1,064	835
Amortization of line of credit issuance costs	51	52
Accretion of discount on marketable securities	(23)	(470)
Amortization of acquired intangible assets	1,474	1,604
Amortization of deferred commissions	4,698	7,518
Amortization of right-of-use operating lease asset	467	425
Stock-based compensation expense	22,453	18,659
Provision for accounts receivable allowances	236	835
Gain on lease modification	(1,570)	–
Tax expense due to change in valuation allowance from business acquisition	–	1,134
Changes in operating assets and liabilities, excluding impact from business acquisition
Accounts receivable	(29,908)	(19,235)
Prepaid expenses and other current assets	(729)	3,979
Deferred commissions	(13,101)	(14,522)
Accounts payable and accrued expenses	4,650	(473)
Deferred revenue	29,475	18,051
Lease liabilities	(678)	(919)
Net cash provided by (used in) operating activities	4,142	(2,604)
Cash flows from investing activities
Expenditures for property and equipment	(888)	(629)
Payments for business acquisition, net of cash acquired	–	143
Proceeds from maturity of marketable securities	4,900	32,657
Net cash provided by investing activities	4,012	32,171
Cash flows from financing activities
Borrowings from line of credit	–	–
Repayments of line of credit	(5,000)	(20,000)
Payments for line of credit issuance costs	–	(208)
Proceeds from employee stock purchase plan	718	912
Employee taxes paid related to the net share settlement of stock-based awards	(309)	(537)
Net cash used in financing activities	(4,591)	(19,833)
Net increase in cash, cash equivalents, and restricted cash	3,563	9,734
Cash, cash equivalents, and restricted cash
Beginning of period	86,855	43,961
End of period	$ 90,418	$ 53,695

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

	Twelve Months Ended December 31,
	2024		2023
Cash flows from operating activities
Net loss	$ (61,971)	$ (66,427)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization of property, equipment and software	3,890		3,137
Amortization of line of credit issuance costs	206		86
Accretion of discount on marketable securities	(406)		(3,203)
Amortization of acquired intangible assets	6,151		3,541
Amortization of deferred commissions	16,347		26,582
Amortization of right-of-use operating lease asset	1,827		1,553
Stock-based compensation expense	84,303		67,704
Provision for accounts receivable allowances	1,709		2,418
Gain on lease modification	(1,570)		–
Changes in operating assets and liabilities, excluding impact from business acquisition
Accounts receivable	(22,253)		(26,982)
Prepaid expenses and other current assets	(5,452)		444
Deferred commissions	(34,219)		(40,540)
Accounts payable and accrued expenses	3,124		(226)
Deferred revenue	38,230		41,918
Lease liabilities	(3,595)		(3,549)
Net cash provided by operating activities	26,321		6,456
Cash flows from investing activities
Expenditures for property and equipment	(2,950)		(2,073)
Payments for business acquisition, net of cash acquired	(1,409)		(145,636)
Purchases of marketable securities	–		(63,085)
Proceeds from maturity of marketable securities	45,085		118,621
Proceeds from sale of marketable securities	–		5,538
Net cash provided by (used in) investing activities	40,726		(86,635)
Cash flows from financing activities
Borrowings from line of credit	–		75,000
Repayments of line of credit	(30,000)		(20,000)
Payments for line of credit issuance costs	–		(1,031)
Proceeds from exercise of stock options	29		29
Proceeds from employee stock purchase plan	1,956		2,339
Employee taxes paid related to the net share settlement of stock-based awards	(2,309)		(2,380)
Net cash (used in) provided by financing activities	(30,324)		53,957
Net increase (decrease) in cash, cash equivalents, and restricted cash	36,723		(26,222)
Cash, cash equivalents, and restricted cash
Beginning of period	53,695		79,917
End of period	$ 90,418		$ 53,695

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

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended December 31,		Twelve Months Ended December 31,
	2024	2023	2024	2023
Reconciliation of Non-GAAP gross profit
Gross profit	$ 83,677	$ 72,623	$ 314,433	$ 257,375
Stock-based compensation expense	1,046	895	3,936	3,224
Amortization of acquired developed technology	705	705	2,820	1,175
Restructuring charges	62	–	62	–
Non-GAAP gross profit	$ 85,490	$ 74,223	$ 321,251	$ 261,774

Reconciliation of Non-GAAP operating income (loss)
Loss from operations	$ (13,677)	$ (18,223)	$ (60,356)	$ (69,277)
Stock-based compensation expense	22,453	18,659	84,303	67,704
Acquisition-related expenses	–	51	–	4,272
Amortization of acquired intangible assets	1,212	1,213	4,851	2,022
Restructuring charges	3,020	–	3,020	–
Gain on lease modification	(1,570)	–	(1,570)	–
Non-GAAP operating income	$ 11,438	$ 1,700	$ 30,248	$ 4,721

Reconciliation of Non-GAAP net income (loss)
Net loss	$ (14,417)	$ (20,077)	$ (61,971)	$ (66,427)
Stock-based compensation expense	22,453	18,659	84,303	67,704
Acquisition-related expenses	–	51	–	4,272
Amortization of acquired intangible assets	1,212	1,213	4,851	2,022
Restructuring charges	3,020	–	3,020	–
Gain on lease modification	(1,570)	–	(1,570)	–
Tax expense due to change in valuation allowance from business acquisition	–	1,134	–	–
Non-GAAP net income	$ 10,698	$ 980	$ 28,633	$ 7,571

Reconciliation of Non-GAAP net income (loss) per share
Net loss per share attributable to common shareholders, basic and diluted	$ (0.25)	$ (0.36)	$ (1.09)	$ (1.19)
Stock-based compensation expense	0.39	0.34	1.48	1.22
Acquisition-related expenses	–	–	–	0.08
Amortization of acquired intangible assets	0.03	0.02	0.09	0.03
Restructuring charges	0.05	–	0.05	–
Gain on lease modification	(0.03)	–	(0.03)	–
Tax expense due to change in valuation allowance from business acquisition	–	0.02	–	–
Non-GAAP net income per share	$ 0.19	$ 0.02	$ 0.50	$ 0.14

Reconciliation of Non-GAAP free cash flow
Net cash provided by (used in) operating activities	$ 4,142	$ (2,604)	$ 26,321	$ 6,456
Expenditures for property and equipment	(888)	(629)	(2,950)	(2,073)
Acquisition-related costs	–	1,366	–	4,272
Interest paid on credit facility	621	1,588	3,635	1,588
Payments related to restructuring charges	2,682	–	2,682	–
Non-GAAP free cash flow	$ 6,557	$ (279)	$ 29,688	$ 10,243

The MIL Network –

February 26, 2025

MIL-OSI: Concrete Pumping Holdings Sets First Quarter 2025 Earnings Conference Call for Tuesday, March 11, 2025

Source: GlobeNewswire (MIL-OSI)

DENVER, Feb. 25, 2025 (GLOBE NEWSWIRE) — Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (“CPH” or the “Company”), a leading provider of concrete pumping and waste management services in the U.S. and U.K., will hold a conference call on Tuesday, March 11, 2025, at 5:00 p.m. Eastern Time to discuss its financial results for the first quarter ended January 31, 2025. The Company will report its financial results in a press release prior to the conference call.

CPH’s CEO Bruce Young and CFO Iain Humphries will host the conference call, followed by a question-and-answer period.

Date: Tuesday, March 11, 2025
Time: 5:00 p.m. Eastern Time (3:00 p.m. Mountain Time)
Toll-free dial-in number: 1-877-407-9039
International dial-in number: 1-201-689-8470
Conference ID: 13751337

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group, Inc. at 1-949-574-3860.

The conference call will be broadcast live and is available for replay here as well as the investor relations section of the Company’s website at www.concretepumpingholdings.com.

A replay of the conference call will be available after 8:00 p.m. Eastern Time on the same day through March 18, 2025.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13751337

About Concrete Pumping Holdings

Concrete Pumping Holdings is a leading provider of concrete pumping services and concrete waste management services in the U.S. and U.K. markets based on fleet size, primarily operating under what we believe are the only established, national brands in both geographies – Brundage-Bone Concrete Pumping, Inc. for concrete pumping in the U.S., Camfaud Group Limited in the U.K., and Eco-Pan, Inc. for waste management services in both the U.S. and U.K. The Company’s large fleet of specialized pumping equipment and trained operators position it to deliver concrete placement solutions that facilitate substantial labor cost savings to customers, shorten concrete placement times, enhance worksite safety and improve construction quality. Highly complementary to its core concrete pumping service, Eco-Pan provides a full-service, cost-effective, regulatory-compliant solution to manage environmental issues caused by concrete washout. As of October 31, 2024, the Company provided concrete pumping services in the U.S. from a footprint of approximately 90 locations across 22 states, concrete pumping services in the U.K. from 35 locations, and route-based concrete waste management services from 20 locations in the U.S. and one shared location in the U.K. For more information, please visit www.concretepumpingholdings.com or the Company’s brand websites at www.brundagebone.com, www.camfaud.co.uk, or www.eco-pan.com.

Company Contact:

Iain Humphries
Chief Financial Officer
1-303-289-7497

Investor Relations:

Gateway Group, Inc.
Cody Slach
1-949-574-3860
BBCP@gateway-grp.com

The MIL Network –

February 26, 2025

MIL-OSI: Synchronoss Technologies Announces Fourth Quarter and Full Year 2024 Earnings Call Date

Source: GlobeNewswire (MIL-OSI)

BRIDGEWATER, N.J., Feb. 25, 2025 (GLOBE NEWSWIRE) — Synchronoss Technologies Inc. (“Synchronoss” or the “Company”) (Nasdaq: SNCR), a global leader and innovator in Personal Cloud platforms, will hold a conference call on Tuesday, March 11, 2025 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss its financial results for the fourth quarter and full year ended December 31, 2024. Financial results will be issued in a press release prior to the call.

Synchronoss management will host the presentation, followed by a question-and-answer period.

Date: Tuesday, March 11, 2025
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial-In Number: 877-451-6152 (domestic) or 201-389-0879 (international)
Conference ID: 13751475

The conference call will be broadcast live here and via the Investor Relations section of Synchronoss’ website.

About Synchronoss
Synchronoss Technologies (Nasdaq: SNCR), a global leader in personal Cloud solutions, empowers service providers to establish secure and meaningful connections with their subscribers. Our SaaS Cloud platform simplifies onboarding processes and fosters subscriber engagement, resulting in enhanced revenue streams, reduced expenses, and faster time-to-market. Millions of subscribers trust Synchronoss to safeguard their most cherished memories and important digital content. Explore how our Cloud-focused solutions redefine the way you connect with your digital world at www.synchronoss.com.

Media Relations Contact:
Domenick Cilea
Springboard
dcilea@springboardpr.com

Investor Relations Contact:
Ryan Gardella
ICR for Synchronoss
SNCRIR@icrinc.com

The MIL Network –

February 26, 2025

MIL-OSI: Robinhood Markets, Inc. to Present at the Citizens JMP Technology Conference on March 4, 2025

Source: GlobeNewswire (MIL-OSI)

MENLO PARK, Calif., Feb. 25, 2025 (GLOBE NEWSWIRE) — Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced that it will be participating in the upcoming Citizens JMP Technology Conference on Tuesday, March 4, 2025.

Robinhood Chairman and Chief Executive Officer Vlad Tenev is scheduled to present on Tuesday, March 4, 2025, at 11:00 AM PT / 2:00 PM ET. Interested parties may access a live audio webcast of the presentation by visiting investors.robinhood.com. Following the presentation, a recording will be available for replay for at least 90 days on the same website.

About Robinhood

Robinhood Markets, Inc. (NASDAQ: HOOD) transformed financial services by introducing commission-free stock trading and democratizing access to the markets for millions of investors. Today, Robinhood lets you trade stocks, options, futures (which includes options on futures, swaps, and event contracts), and crypto, invest for retirement, and earn with Robinhood Gold. Headquartered in Menlo Park, California, Robinhood puts customers in the driver’s seat, delivering unprecedented value and products intentionally designed for a new generation of investors. Additional information about Robinhood can be found at www.robinhood.com.

Robinhood uses the “Overview” tab of its Investor Relations website (accessible at investors.robinhood.com/overview) and its Newsroom (accessible at newsroom.aboutrobinhood.com), as means of disclosing information to the public in a broad, non-exclusionary manner for purposes of the SEC Regulation Fair Disclosure (Reg. FD). Investors should routinely monitor those web pages, in addition to Robinhood’s press releases, SEC filings, and public conference calls and webcasts, as information posted on them could be deemed to be material information.

“Robinhood” and the Robinhood feather logo are registered trademarks of Robinhood Markets, Inc. All other names are trademarks and/or registered trademarks of their respective owners.

Contacts

Investor Relations

ir@robinhood.com

Media

press@robinhood.com

The MIL Network –

February 26, 2025

MIL-OSI: BigCommerce to Host Analyst and Investor Day 2025

Source: GlobeNewswire (MIL-OSI)

AUSTIN, Texas, Feb. 25, 2025 (GLOBE NEWSWIRE) — BigCommerce Holdings, Inc. (“BigCommerce”) (Nasdaq: BIGC), a leading provider of professional-grade, composable commerce solutions, today announced that it will host its Analyst and Investor Day on Tuesday, March 11, 2025 in New York City. The event will be held from 2:30 p.m. to 5:30 p.m. Eastern Time.

Members of the BigCommerce leadership team will discuss the company’s strategic vision, product offerings, financial performance and long-term growth opportunities. Presentations will be followed by a live Q&A session. In-person attendance at the event is by invitation only, and registration is required as participation will be limited.

The event will also be webcast live. Interested parties can register for the live webcast on BigCommerce’s Investor Relations website at http://investors.bigcommerce.com. Following the event, an archived replay will be made available at the same location for twelve months.

About BigCommerce

BigCommerce (Nasdaq: BIGC) is a leading open SaaS and composable ecommerce platform that empowers brands, retailers, manufacturers and distributors of all sizes to build, innovate and grow their businesses online. BigCommerce provides its customers sophisticated professional-grade functionality, customization and performance with simplicity and ease-of-use. Tens of thousands of B2C and B2B companies across 150 countries and numerous industries rely on BigCommerce, including Coldwater Creek, Harvey Nichols, King Arthur Baking Co., MKM Building Supplies, United Aqua Group and Uplift Desk. For more information, please visit www.bigcommerce.com or follow us on X and LinkedIn.

BigCommerce® is a registered trademark of BigCommerce Pty. Ltd. Third-party trademarks and service marks are the property of their respective owners.

The MIL Network –

February 26, 2025

MIL-OSI: Wintrust Financial Corporation to Present at RBC Capital Markets Global Financial Institutions Conference on March 4, 2025

Source: GlobeNewswire (MIL-OSI)

ROSEMONT, Ill., Feb. 25, 2025 (GLOBE NEWSWIRE) — Wintrust Financial Corporation (“Wintrust” or the “Company”) (Nasdaq: WTFC) will present at the RBC Capital Markets Global Financial Institutions Conference to be held on March 4-5, 2025. Wintrust management will participate in a question and answer session that is scheduled to begin at approximately 8:40 AM Eastern Time on March 4, 2025.

This event will be available via an audio webcast and may be accessed at https://kvgo.com/rbc/wintrust-financial-corporation-march-2025 or at Wintrust’s website at www.wintrust.com, Investor Relations, Investor News and Events, Presentations and Conference Calls. Listeners should go to the website at least fifteen minutes before the presentation to download and install any necessary audio software. For those unable to attend the live broadcast, a replay will be available for up to 90 days after the conference. There is no charge to access the event.

About Wintrust
Wintrust is a financial holding company with approximately $65 billion in assets whose common stock is traded on the NASDAQ Global Select Market. Guided by its “Different Approach, Better Results” philosophy, Wintrust offers the sophisticated resources of a large bank while providing a community banking experience to each customer. Wintrust operates more than 200 retail banking locations through 16 community bank subsidiaries in the greater Chicago, southern Wisconsin, west Michigan, northwest Indiana, and southwest Florida market areas. In addition, Wintrust operates various non-bank business units, providing residential mortgage origination, wealth management, commercial and life insurance premium financing, short-term accounts receivable financing/outsourced administrative services to the temporary staffing services industry, and qualified intermediary services for tax-deferred exchanges.

FOR MORE INFORMATION CONTACT:
Timothy S. Crane, President & Chief Executive Officer
David A. Dykstra, Vice Chairman & Chief Operating Officer
(847) 939-9000
Website address: www.wintrust.com

The MIL Network –

February 26, 2025

MIL-OSI United Nations: Farmers must be at the heart of biodiversity action

Source: United Nations MIL OSI b

25 February 2025 Climate and Environment

“Without the farmers, it is only political policy without implementation” – that was the stark message delivered by the UN Food and Agriculture Organization’s Director-General on Tuesday to delegates attending the latest round of UN biodiversity talks in Rome.

Over 150 countries will be meeting from 25 to 27 February to advance biodiversity finance, accountability and the integration of agrifood systems into global conservation strategies.

Despite groundbreaking agreements on genetic data and recognising the stewardship role of Indigenous Peoples at the first round of the COP16 conference in Colombia late last year, this new Conference of the Parties – or COP16.2 – aims to close some crucial gaps which are instrumental for implementing the Kunming-Montreal Global Biodiversity Framework (GBF) to halt and reverse biodiversity loss by 2030.

With nature declining at an alarming rate, the challenge now is turning commitments into action.

Farmers on board

FAO chief Qu Dongyu called for urgent action to transform agrifood systems, stressing that biodiversity must be embedded in food and farming policies. A key focus is the Agri-NBSAPs Support Initiative, launched at COP16 in Cali, Colombia.

The initiative is designed to help governments integrate agrifood systems into their National Biodiversity Strategies and Action Plans, to eliminate any conflicts between agricultural policy and biodiversity goals.

Colombia’s COP16 President, Environment Minister María Susana Muhamad, and Agriculture Minister Martha Carvajalino, underscored the importance of full implementation.

Mr. Dongyu highlighted the deep connections between biodiversity and food security, noting that over half of the Kunming-Montreal Framework’s 23 targets are directly linked to agriculture.

He explained that “biodiversity is also in the soil and in the water” and that it is critical “to look at biodiversity from a holistic, three-dimensional perspective”.

‘On the brink’: Guterres

Despite commitments made at COP15, funding remains a sticking point.

Secretary-General António Guterres, warned in a statement that biodiversity is “on the brink” and urged governments to translate pledges into investment. “Success requires accountability. And action demands finance,” he said.

With only a fraction of the required $200 billion per year mobilised, developing nations are pushing wealthier countries to meet their financial obligations.

Discussions in Rome are expected to focus on accountability frameworks to track spending and ensure resources reach the communities most affected by biodiversity loss.

What’s next?

In the coming days, negotiators will work to finalise agreements on biodiversity finance, implementation strategies and monitoring frameworks.

Mr. Dongyu closed his statement by calling for an integrated approach across government sectors.

“We need an integrated approach across government sectors, across Ministries, to ensure the Four Betters: better production, better nutrition, better environment and a better life – leaving no one behind,” he said.

With time running out to meet the 2030 targets, COP16.2 is a key test of global commitment – whether countries will step up or risk falling short on protecting the planet’s ecosystems.

MIL OSI United Nations News –

February 26, 2025

MIL-OSI New Zealand: Auckland Council cracks down on unregistered dogs: infringement notices issued as last resort

Source: Auckland Council

Auckland Council is, for the first time, taking firm action against dog owners who have failed to register their pets, with around 5,500 infringement notices to be issued over the next few days.

Chair of the Regulatory and Safety Committee, Councillor Josephine Bartley, emphasised dog registration is not optional.

“This is the first time we’ve moved to last resort measures and issued infringement notices. Dog registration is a legal requirement designed to benefit both the community and pet owners,” says Councillor Bartley.

The initiative is part of the council’s strategy to curb roaming dogs and dog attacks, by getting stricter on Aucklanders who do not register, de-sex or vaccinate their dogs, or keep them contained on their property.

Infringement notices will be sent to owners of “sighted” dogs; dogs which were registered last financial year but not re-registered or dogs known to be still alive from either being “sighted’ by Animal Management Officers or as the result of a complaint.

In November, Auckland Council sent out 22,929 pre-infringement reminder notices to the owners of unregistered dogs. This proactive approach resulted in a significant increase in registrations and provided the council with more accurate data on the number of dogs residing in the region, as well as increasing revenue that goes directly towards providing animal management services.

“We appreciate those dog owners who responded to the pre-infringement notices and did the right thing by registering their dogs and paying the fee. But for those who haven’t, this is the final warning,” says Councillor Bartley.

“Responsible dog ownership begins with dog registration. Ratepayers should not have to bear the cost of irresponsible dog owners who refuse to register their animals.

“This enforcement action highlights Auckland Council’s commitment to reducing roaming dogs and dog attacks and ensuring dogs are registered across the region.”

The $300 fines come after multiple attempts to contact owners and provide them with opportunities to renew their dog registrations.

Auckland Council’s Animal Management Manager Elly Waitoa acknowledged the positive response from many dog owners following the pre-infringement notices being sent but reinforced the need for further compliance.

“The number of unregistered dogs has now reduced which is a significant improvement,” says Ms Waitoa.

“However, too many owners have still ignored their responsibilities. We have given them ample time and reminders, and now, as a last resort, we are issuing infringement notices. Our goal is for all dog owners to register their pets rather than face a fine.”

Auckland Council urges all remaining unregistered dog owners to act immediately to avoid penalties. Pet registration is a legal requirement, and ongoing non-compliance will not be tolerated.

For more information on dog registration and compliance, click here

MIL OSI New Zealand News –

February 26, 2025

MIL-OSI USA: CFTC Releases Enforcement Advisory on Self-Reporting, Cooperation, and Remediation

Source: US Commodity Futures Trading Commission

WASHINGTON, D.C. — The Commodity Futures Trading Commission’s Division of Enforcement today issued an advisory on how the Division will evaluate a company’s or individual’s self-reporting, cooperation, and remediation when recommending enforcement actions to the Commission and establishes the factors the Division will consider. This marks the first time the Division will use a matrix to determine the appropriate mitigation credit to apply. The advisory provides fair notice to the public and guidance that is designed to ensure due process in the Division’s investigations and enforcement actions.
“Today, the CFTC is finally making the improvements that I have long proposed are necessary to ensure lawful enforcement, and also implements the Administration’s Executive Order,” said Acting Chairman Caroline D. Pham. “From the beginning, I have encouraged firms to self-report to proactively take ownership, ensure accountability, and prevent future violations. By making the CFTC’s expectations for self-reporting, cooperation, and remediation more clear—including a first-ever matrix for mitigation credit—this advisory creates meaningful incentives for firms to come forward and get cases resolved faster with reasonable penalties.
“Critically, it will enable the CFTC to do more with less and free up enforcement resources to focus relentlessly on catching fraudsters and scammers, helping victims, and promoting market integrity. Today’s advisory gets back to basics by returning to decades of prior CFTC policy on self-reporting and is aligned with best practices for assessing penalties followed by the Department of Justice and other U.S. financial regulators. This ‘no-surprises’ approach is straightforward and demonstrates the CFTC’s renewed commitment to fair treatment under the law and principles of regulatory consistency, transparency, and clarity.”
“Our goal with this advisory is to obtain accountability while encouraging efficiency and conserving government resources by giving entities a clear reason to self-report and cooperate,” said Division of Enforcement Director Brian Young. “This advisory informs both staff and the public precisely how to do that. Based on my experience in criminal practice, I believe policies that encourage transparency and cooperation yield efficiencies and better justice outcomes.”
Specifically, the advisory details the framework the Division will use to assess self-reporting, cooperation, and remediation in investigations and enforcement actions:

Self-Reporting: The Division will evaluate self-reporting on a three-tier scale: No Self-Report; Satisfactory Self-Report; and Exemplary Self-Report. To receive full credit, disclosures must be voluntary, made to the Commission, made in a timely manner, and complete. Reports can be made to either the Division of Enforcement or to one of the Commission’s other Divisions with oversight responsibility. The Division of Enforcement will provide a safe harbor for good faith self-reporting if any inaccurate information in the self-report or voluntary disclosure is supplemented and corrected promptly after discovery of the inaccurate information.
Cooperation and Remediation: The Division will evaluate cooperation on a four-tier scale: No Cooperation; Satisfactory Cooperation; Excellent Cooperation; and Exemplary Cooperation. The Division will evaluate remediation as a part of its evaluation of cooperation and consider whether a party engaged in substantial efforts to prevent a future violation. Other CFTC Divisions will be involved in the assessment of remediation. In some cases, a compliance monitor or consultant may be recommended to ensure the completion of undertakings. The advisory also provides examples of uncooperative conduct.
Mitigation Credit Matrix: The advisory includes a Mitigation Credit Matrix describing the presumptive mitigation credit—as a percentage of the Division’s initial calculation of the civil monetary penalty—that a party may be eligible for if that party has self-reported and/or cooperated. The presumptive Mitigation Credit ranges from 0% for no self-report and no cooperation to 55% for an exemplary self-report and exemplary cooperation. The Division retains the discretion to deviate from the Mitigation Credit Matrix given the unique facts and circumstances of a particular case.

MIL OSI USA News –

February 26, 2025

MIL-OSI USA: Construction Starts on 433-Unit Affordable Housing Project

Source: US State of New York

Governor Kathy Hochul today announced the start of construction on 1760 Third Avenue in East Harlem, a 433-unit affordable and supportive housing project in East Harlem that is the first residential project to get underway using capital financing through her landmark $1 billion mental health initiative. Funded by New York State Homes and Community Renewal and New York City Department of Housing Preservation and Development with support from the Office of Mental Health and the Office of Temporary and Disability Assistance, the $264 million project will transform a vacant former CUNY dormitory into affordable apartments, including 261 units of supportive housing for individuals living with mental illness.

“By investing state resources into communities like Harlem, we can create the modern, affordable apartments that New Yorkers need,” Governor Hochul said. “This development on Third Avenue will bring new life to a vacant building by transforming it into affordable apartments that over 400 households will be able to enjoy for generations to come.”

Breaking Ground, the project developer, will transform the vacant structure at 1760 Third Avenue into a 433-unit mixed-use development for households earning up to 60 percent of the Area Median Income. The redeveloped property will include 261 units reserved for formerly homeless individuals living with serious mental illness, with services provided by Breaking Ground.

The project will include a subset of units for young adults aging out of foster care or who have experienced homelessness. Onsite support services will include case management, medical and mental health care, benefits and entitlement counseling, and connections to employment.

The renovations to the building will incorporate sustainability measures such as energy-efficient rooftop air conditioners and hydronic heating system pumps that use water—rather than air—to transfer heat. The building will also feature water-conserving plumbing, efficient lighting, vegetative roofs and ENERGY STAR ® refrigerators to support cleaner living.

The outdoor spaces along Third Avenue will also be transformed, creating new public-facing areas with landscaping, seating, and community-focused spaces. Constructed in 1974, the 1760 Third Avenue building originally housed a Florence Nightingale Nursing Center. The structure was later converted into a dormitory for the City University of New York’s Hunter College and Baruch College.

The project received $75 million from HCR’s Supportive Housing Opportunity Program and a $24.6 million first mortgage structured as a 501(c)3 bond from its Housing Finance Agency. In addition, the development was awarded $126 million from the New York City Department of Housing Preservation and Development’s Supportive Housing Loan Program.

In the past five years, HCR has financed nearly 6,600 affordable homes in Manhattan. 1760 Third Avenue continues this effort and complements Governor Hochul’s $25 billion five-year Housing Plan which is on track to create or preserve 100,000 affordable homes statewide.

The State Office of Mental Health provided $21 million through Governor Hochul’s landmark $1 billion mental health initiative, which included funding to establish 3,500 units of specialized housing. So far, the mental health initiative has established nearly 1,300 new units including supportive housing and apartment treatment units, with 2,150 capital housing units in the pipeline. OMH has conditionally awarded more than $831 million in capital for community residence single room occupancy, supportive single room occupancy, and transitional residential units.

The project also received $10 million through the New York State Office of Temporary and Disability Assistance’s Homeless Housing and Assistance Program and a $2 million discretionary capital grant from New York City Council Member Diana Ayala from Fiscal Year 2024. The New York City Acquisition Fund provided an acquisition loan originated by the Low-Income Investment Fund. Wells Fargo is providing the construction letter of credit.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “This $264 million development is a testament to the power of innovation in addressing New York’s housing crisis. By transforming this former college dorm into affordable and supportive homes, we can provide security, stability, and a way forward for more than 430 individuals, families, and young people in need. 1760 Third Avenue exemplifies the Governor’s commitment to creating housing opportunities that are accessible, sustainable, and supportive for all New Yorkers, particularly the most vulnerable members of our community. We thank our partners, including Breaking Ground, for their collaboration on this important project.”

New York State Office of Mental Health Commissioner Dr. Ann Sullivan said, “Supportive housing provides critical services that enable people living with mental illness to live and thrive in their communities. The project to redevelop 1760 Third Avenue will fill an important need in the East Harlem area and will provide much needed housing stability for individuals experiencing homelessness, including 261 units for those living with mental illness. This project demonstrates Governor Hochul’s continued commitment to increasing specialized housing for New Yorkers living with mental illness.”

New York State Office of Temporary and Disability Assistance Commissioner Barbara C. Guinn said, “We are grateful to Governor Hochul for making landmark investments to expand supportive housing across New York State, recognizing that stable housing is the foundation for stable health, a stable life, and strong communities. The 1760 Third Avenue project will provide residents who have experienced homelessness with safe, affordable, energy-efficient apartments they can call home and onsite access to support services that will help them thrive in their community. Thank you to all our project partners and special thanks to Breaking Ground for their longtime leadership in providing supportive and transitional housing.”

Assemblymember Edward Gibbs said, “Today, we celebrate a major milestone in our collective effort to address the affordable housing crisis and provide supportive services to those who need it most. The groundbreaking of 1760 3rd Avenue marks a significant step forward in our mission to create a more just and equitable society. As we continue to address the affordable housing crisis, projects like this remind us that together, we can create a more just and equitable society for all. I’m honored to play a part in supporting this project, and I look forward to seeing the positive impact it will have on our community.”

New York City Council Member Diana Ayala said, “We are excited to celebrate the start of construction at 1760 Third Avenue. Our office was pleased to have invested $2 million in capital discretionary funding in this project and we look forward to welcoming residents home once construction is complete. Thank you to all our partners.”

Breaking Ground President and CEO Brenda Rosen said, “Transforming underutilizing buildings like 1760 Third Avenue into much-needed affordable and supportive housing is an unparalleled opportunity – not only for the individuals who will soon call it home but also for the future of adaptive reuse development in our city. We are grateful that our public and private sector partners share our vision to create hundreds of safe, stable homes while preserving and revitalizing existing infrastructure. As we begin renovations, we mark an exciting milestone in our commitment to expanding services in Harlem and ensuring more New Yorkers have access to the housing and support they need.”

Low Income Investment Fund Director Northeast Region Molly Anderson said, “LIIF was honored to work with NYS Homes and Community Renewal, NYC Department of Housing Preservation and Development, and NYS Office of Temporary and Disability Assistance to secure a $29.5 million acquisition and predevelopment loan in partnership with the New York City Acquisition Fund. This collaboration made a complex transaction a reality – and solidifies our relationship with a mission-aligned recipient, Breaking Ground, as we continue to strengthen historically underserved New York City communities such as East Harlem.”

Wells Fargo Head of Public Affairs Jason Rosenberg said, “We thank Breaking Ground and the many community partners and neighbors who participated in bringing a long-term supportive and affordable housing option to East Harlem, strengthening the community and making lives better. We were pleased to provide Breaking Ground with $24.9 million in construction financing which will help enable them to transform the property into permanent housing, plus a $500,000 grant from the Wells Fargo Foundation to provide amenities that will help residents feel at home for decades to come.”

New York City Department of Housing Preservation and Development Commissioner Adolfo Carrion, Jr. said, “It is truly fitting to see this building continue its service to this community, first in public health, then as a home for CUNY students and now by providing hundreds of affordable supportive homes and deepening our city’s commitment to affordable housing in Harlem. This success story is another example of the effective collaboration of the City and State, across multiple agencies, to bring dynamic programming, advance green construction design, and inclusive housing solutions to create investments that tackle the drivers of our housing crisis. HPD is proud to be part of the team and excited for the individuals and families that will call this place home”

Governor Hochul’s Housing Agenda

Governor Hochul is committed to addressing New York’s housing crisis and making the State more affordable and more livable for all New Yorkers. As part of the FY25 Enacted Budget, the Governor secured a landmark agreement to increase New York’s housing supply through new tax incentives for Upstate communities, new incentives and relief from certain state-imposed restrictions to create more housing in New York City, a $500 million capital fund to build up to 15,000 new homes on state-owned property, an additional $600 million in funding to support a variety of housing developments statewide and new protections for renters and homeowners. In addition, as part of the FY23 Enacted Budget, the Governor announced a five-year, $25 billion Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes. More than 55,000 homes have been created or preserved to date.

The FY25 Enacted Budget also strengthened the Pro-Housing Community Program which the Governor launched in 2023. Pro Housing Certification is now a requirement for localities to access up to $650 million in discretionary funding. Currently, 275 communities have been certified, including New York City.

MIL OSI USA News –

February 26, 2025

MIL-OSI: Missouri Scholarship & Loan Foundation Announces Mission-Mini Grant to Support Career and Technical Education

Source: GlobeNewswire (MIL-OSI)

CHESTERFIELD, Mo., Feb. 25, 2025 (GLOBE NEWSWIRE) — As the nation recognizes February 2025 as Career and Technical Education Month, the Missouri Scholarship & Loan Foundation (MSLF) and MOHELA are proud to support Missouri students through its Career Development Mission-Mini Grant initiative. This grant program is designed to connect students with career opportunities, corporate partnerships, and pathways to success beyond high school.

“Investing in our students means investing in the future of our workforce,” said Melissa Findley, Executive Director, Missouri Scholarship & Loan Foundation. “Through the Career Development Mission-Mini Grant, we are strengthening career pathways and equipping Missouri students with real-world skills to thrive in high-demand industries.”

The Career Development Mission-Mini Grant opportunity focuses on career exploration, job shadowing, internships, mentorships, and workforce development. High schools, colleges, and nonprofit organizations are encouraged to apply for funding of up to $1,000 to support initiatives such as:

Career Counseling & Exploration – Connecting students with advisors and professionals to help them navigate their career interests.
Business & College Tours – Providing opportunities for students to visit local employers and higher education institutions.
Job Shadowing & Mentorships – Pairing students with professionals in their chosen career paths.
Career Events & Workshops – Organizing job fairs, industry panels, and hands-on experiences.

To date, MSLF has received 27 applications, with 18 already approved for funding. Examples of funded projects include:

Hamilton R-II – Job shadow partnerships and guest speaker events for sophomore Career course students.
Fair Play High School – “March Madness Career Match-Up,” a basketball-themed career exploration program.
Carl Junction High School – Incentives for students completing job shadowing or college visits.
Ozark Mountain Technical Center – Mock Job Fair featuring over 30 employers.
Mexico High School – “Show-Me Opportunities” local workforce development event.
Salisbury R-IV – Transportation and incentives for job shadowing experiences.
Bolivar High School – Student certifications in high-demand fields such as Google IT, CDL, OSHA, and restorative nursing.

“Providing students with opportunities to explore career pathways is critical to building a strong workforce and a thriving economy,” said Scott Giles, Chairman of the MSLF Foundation Board and CEO of MOHELA. “We are proud to support this initiative, which empowers students to make informed career choices and gain the skills necessary for long-term success.”

Applications for the Career Development Mission-Mini Grant will be accepted through April 1, 2025, or until funding is depleted. Interested schools and nonprofit organizations can request an application by visiting the Missouri Scholarship & Loan Foundation page.

For more information on how MSLF is empowering Missouri students and supporting career and technical education, visit www.moslf.org.

About Missouri Scholarship & Loan Foundation
MSLF is dedicated to providing innovative financial solutions and career development opportunities for Missouri students, particularly those with financial need, to prepare for and successfully complete their higher education journeys.

About MOHELA
MOHELA is a non-profit, governmental corporation with 40 years of experience and a track record of providing exceptional customer service to the borrowers it serves. MOHELA plays an essential role in the student loan ecosystem, providing support and assistance for around 9 million borrowers.

The MIL Network –

February 26, 2025

MIL-OSI USA: Cantwell-Led Fusion Energy Commercialization Commission Releases Roadmap to Secure American Leadership in Fusion Energy

US Senate News:

Source: United States Senator for Washington Maria Cantwell
02.25.25
Cantwell-Led Fusion Energy Commercialization Commission Releases Roadmap to Secure American Leadership in Fusion Energy
Cantwell: Expanding fusion can help “meet our growing electricity demand, lower emissions, & increase export opportunities”
WASHINGTON, D.C. – Yesterday, the Commission on the Scaling of Fusion Energy, which is co-chaired by U.S. Senator Maria Cantwell (D-WA), ranking member of the Senate Committee on Commerce, Science, and Transportation, and senior member of the Senate Finance Committee, and Senate Energy and Natural Resources Committee; Sen. Jim Risch (R-ID), chair of the Senate Foreign Relations Committee; and Ylli Bajraktari, President, Special Competitive Studies Project (SCSP), released a preliminary report titled “Fusion Power: Enabling 21st Century American Dominance.”
“Fusion could provide vast amounts of the type of power we need to keep electricity prices down and increase America’s economic competitiveness,” said Sen. Cantwell. “This preliminary report provides a roadmap for how the United States could lead the world in fusion commercialization in order to meet our growing electricity demand, lower emissions, and increase export opportunities.”
Fusion, the same process that powers the sun, typically utilizes an inexhaustible supply of water as its fuel, and produces negligible atmospheric emissions and zero greenhouse gas emissions. Fusion reactors cannot melt down, and do not generate the high-level, long-lasting radioactive waste associated with nuclear fission reactors.
The Commission’s recommendations are organized into three categories:
Declare Fusion a National Security Priority: The United States should prioritize fusion energy development. A presidential executive order should articulate a National Fusion Goal and establish a national fusion strategy led by the Department of Energy (DOE), with a 90-day action plan to streamline regulations, organize public and private stakeholders, and align the necessary resources. This will ensure U.S. leadership in fusion energy, which is vital for national prosperity and security.
Establish Fusion Leadership and Drive Commercialization: A political appointee at the DOE should be appointed as the national “Fusion Lead” and be empowered to implement the Fusion Executive Order (EO). This senior leader should report to the Secretary and oversee existing DOE fusion commercialization programs, develop the 90-day action plan, and dismantle bureaucratic obstacles.
Strategic Investment to Win the Fusion Race: The United States will not be able to achieve fusion power unless it invests in the fundamental building blocks of commercial fusion: infrastructure, supply chain, and talent. To outpace China, the United States should make a one-time investment towards these strategic assets, de-risk multiple commercial fusion pathways, and sustain basic research to cultivate the next generation of fusion science.
The 13-member Commission on the Scaling of Fusion Energy, first announced in Fall 2023 at SCSP’s Global Emerging Technology Summit, aims to position the United States not only as the leader in fusion science but also in its scaling as the technology matures. The Commission will hold sessions throughout 2025, culminating in its final report later this year.
This effort represents a step towards ensuring U.S. leadership in a transformative technology, with implications for national security, economic prosperity, and energy independence. The Commission’s work will lay the foundation for a future where fusion energy could be the key pillar of global energy infrastructure.
Sen. Cantwell is a leading Senate champion for the development and deployment of fusion energy.
In July 2024, Sen. Cantwell hosted a Pacific Northwest Energy Summit, joining U.S. Senator Ron Wyden (D-OR) and regional energy stakeholders to discuss technological and policy solutions that will ensure NW ratepayers and our regional economy continue to benefit from abundant, affordable, and reliable clean energy. More than 200 business, government, and non-profit energy professionals attended the event.
In May 2023, Sen. Cantwell applauded Everett-based Helion Energy’s announcement that they plan to be the first company in the world to generate and sell electricity from a fusion reactor.
Thanks to leading fusion companies like Helion, as well as Everett-based Zap and Seattle-based Avalanche, many consider the Puget Sound region to be the world’s biggest fusion energy hub.
During a Senate hearing in April 2023, Sen. Cantwell pressed Department of Energy Secretary Jennifer Granholm about plans to expand federal support for fusion research.
At an Energy Committee hearing in September 2022, Sen. Cantwell asked fusion experts like Dr. Scott Hsu, Lead Fusion Coordinator for the Department of Energy, and Professor Steven Cowley, Director of the Princeton Plasma Physics Laboratory, about what more we can be doing to boost fusion R&D and make sure we can manufacture fusion components domestically.

MIL OSI USA News –

February 26, 2025

MIL-OSI Economics: Isabel Schnabel: No longer convenient? Safe asset abundance and r*

Source: European Central Bank

Keynote speech by Isabel Schnabel, Member of the Executive Board of the ECB, at the Bank of England’s 2025 BEAR Conference

London, 25 February 2025

Over the past few years, global bond investors have fundamentally reappraised the expected future course of monetary policy.

Even as inflation has receded and policy restriction has been dialled back, current market prices suggest that maintaining price stability will require higher real interest rates in the future than before the pandemic.

In my remarks today, I will argue that the shift in market expectations about the level of r* – the rate to which the economy is expected to converge in the long run once current shocks have run their course – is consistent with two sets of observations.

The first is that the era during which risks to inflation have persistently been to the downside is likely to have come to an end.

Growing geopolitical fragmentation, climate change and labour scarcity pose measurable upside risks to inflation over the medium to long term. This is especially true as the recent inflation surge may have permanently scarred consumers’ inflation expectations and may have lowered the bar for firms to pass through adverse cost-push shocks to consumer prices.

The second observation is that we are transitioning from a global “savings glut” towards a global “bond glut”.

Persistently large fiscal deficits and central bank balance sheet normalisation are gradually reducing the safety and liquidity premia that investors have long been willing to pay to hold scarce government bonds. The fall in the “convenience yield”, in turn, reverses a key factor that had contributed to the decline in real long-term interest rates, and hence r*, during the 2010s.

The implications for monetary policy are threefold.

First, a higher r* calls for careful monitoring of when monetary policy ceases to be restrictive. Second, central bank balance sheet policies may themselves affect the level of r* through the convenience yield, making them potentially less effective than previously thought. Third, because central bank reserves also offer convenience services to banks, it is optimal to provide reserves elastically on demand as quantitative tightening reduces excess liquidity.

Upward shift in r* signals lasting change in the inflation regime

Starting in 2021, long-term government bond yields rose measurably across advanced economies. Today, the ten-year yield of a German government bond is about two and a half percentage points higher than in late 2021 (Slide 2, left-hand side).

What is remarkable about the rise in nominal bond yields in the euro area over this period is that it was not driven by a change in inflation compensation. Investors’ views about future inflation prospects are broadly the same today as they were three years ago (Slide 2, right-hand side).

Rather, nominal interest rates rose because real interest rates increased. Euro area real long-term rates are now trading at a level that is substantially higher than the level prevailing during most of the post-2008 global financial crisis period (Slide 3, left-hand side).

Part of the rise in real long-term interest rates is a mechanical response to the tightening of monetary policy.

Long-term interest rates are an average of expected short-term interest rates over the lifetime of the bond, plus a term premium. So, when we raised our key policy rates in response to the surge in inflation, the average real rate expected to prevail over the next ten years increased.^[1]

What is more striking, however, is that investors also fundamentally revised the real short-term rate expected to prevail once inflation has sustainably returned to our target. This rate is typically taken as a proxy for the natural rate of interest, or r*.

The real one-year rate expected in four years (1y4y), for example, is now at the highest level since the sovereign debt crisis (Slide 3, right-hand side). Even at very distant horizons, such as in nine years, the expected real short-term rate (1y9y) has increased measurably in recent years.

To a significant extent, these developments reflect a genuine reappraisal of the real equilibrium interest rate that is consistent with our 2% inflation target. A rise in the term premium, which is the excess return investors demand for the uncertainty surrounding the future interest rate path, can explain less than half of the change in the real 1y4y rate.^[2]

These forward rates have also remained surprisingly stable since 2023, with a standard deviation of around just 15 basis points, despite the measurable decline in inflation, the protracted weakness in aggregate demand and the series of structural headwinds facing the euro area.

We are seeing a similar upward shift in model-based estimates of r*. According to estimates by ECB economists, the natural rate of interest in the euro area has increased appreciably over the past two years, and even more so than what market-based real forward rates would suggest (Slide 4).^[3]

This result is robust across many models and even holds when accounting for the significant uncertainty surrounding these estimates. In other words, for drawing conclusions about the directional change of r* from the rise in market and model-based measures, the actual rate level is largely irrelevant.

What matters is the direction of travel. And that is unambiguous: we are unlikely to return to the pre-pandemic macroeconomic environment in which central banks had to bring real rates into deeply negative territory to deliver on their price stability mandate. This suggests that the nature of the inflation process is likely to have changed lastingly.

Real interest rates are only loosely tied to trend growth

Why do markets expect such a trend reversal for real interest rates in the euro area?

One answer is that some of the forces that weighed on inflation during the 2010s are now reversing.

Globalisation is a case in point. The integration of China and other emerging market economies into the global production network and the broad-based decline in tariff and non-tariff barriers were important factors reducing price pressures in advanced economies over several decades.^[4]

Today, protectionist policies, the weaponisation of critical raw materials and geopolitical fragmentation are increasingly dismantling the foundations on which trade improved the welfare of consumers worldwide.

These forces can be expected to have first-order effects on inflation.

European gas prices, for example, are up by 65% compared with a year ago despite the significant decline over recent days. Oil prices, too, have increased since September of last year, in part reflecting the marked depreciation of the euro.

While commodity prices are inherently volatile, and may reverse quickly, other deglobalisation factors, such as reshoring and the lengthening of supply chains, are likely to increase price pressures more lastingly.

And yet, the persistent rise in real forward rates poses a conundrum in the euro area.

The reason is that increases in long-term real interest rates are typically thought of as being associated with improvements on the supply side of the economy, such as productivity growth, the labour force and the capital stock.

At present, however, these factors do not point towards an increase in r* in the euro area.

Potential growth has generally been revised lower, not higher, as many of the factors currently holding back consumption and especially investment are likely to be structural in nature, such as a rapidly ageing population and deteriorating competitiveness.

The weak link between the structural factors driving potential growth and r* is, however, not exceptional from a historical perspective.

Indeed, over time there has been little evidence of a stable relationship between real interest rates and drivers of potential growth, such as demographics and productivity.^[5] They have had the expected relationship in some subsamples but not in others.^[6]

Similarly, in the most popular framework for estimating r*, the seminal model by Laubach and Williams, potential growth has played an increasingly subordinated role in explaining why the natural rate of interest has remained at a depressed level in the United States following the global financial crisis (Slide 5, left-hand side).^[7]

Rather, the persistence in the decline in r* is explained to a large extent by a residual factor, which lacks economic interpretation.

Moreover, if growth was the main driver of r*, then one would expect all real rates in the economy to adjust in a similar way. But while real rates on safe assets have declined since the early 1990s, the return on private capital has remained relatively constant.^[8]

Decline in the convenience yield is pushing r* up

A growing body of research attempts to reconcile these puzzles. Many studies attribute a significant role to the money-like convenience services that safe and liquid assets, such as government bonds, provide to market participants.

The yield that investors are willing to forgo in equilibrium for these services is what economists call the “convenience yield”.^[9]

This yield, in turn, critically depends on the net supply of safe assets: When these are scarce, investors are willing to pay a premium to hold them, depressing the real equilibrium rate of interest. And when they are abundant, the premium falls, putting upward pressure on r*.

New research by economists at the Board of Governors of the Federal Reserve System shows how incorporating the convenience yield into the Laubach and Williams framework significantly improves the explanatory power of the model.^[10]

In fact, the convenience yield can explain most of the residual factor and is estimated to have caused a large part of the secular decline in the real natural rate in the United States (Slide 5, right-hand side).

Liquidity requirements that regulators imposed on banks in the wake of the global financial crisis, the Federal Reserve’s balance sheet policies and the integration of many large emerging market economies into the global economy have led to an unprecedented increase in the demand for safe and liquid assets, driving up their convenience yield.^[11]

These findings are in line with earlier research showing that the convenience yield has played an equally important role in depressing the real equilibrium rate in many other advanced economies, including the euro area, during the 2010s.^[12]

This process is now reversing. According to the work by the Federal Reserve economists, r* has recently increased visibly, contrary to what the model without a convenience yield would suggest.

Asset swap spreads are a good indicator of the convenience yield. Both interest rate swaps and government bonds are essentially risk-free assets, so they should in principle yield the same return.

For a long time, this has been the case: before the start of quantitative easing (QE) in the euro area in 2015, the spread between a ten-year German Bund and a swap of equivalent maturity was close to zero on average (Slide 6, left-hand side).

Over time, however, with the start of QE and the parallel fiscal consolidation by governments reducing the net supply of government bonds in the market, the premium that investors were willing to pay to secure their convenience services rose measurably. At the peak, ten-year Bunds were trading nearly 80 basis points below swap rates.

But since about mid-2022 the asset swap spread has persistently narrowed. In October of last year it turned positive for the first time in ten years, and it now stands close to the pre-QE average again.

Other measures of the convenience yield paint a similar picture. The spread between ten-year bonds issued by the Kreditanstalt für Wiederaufbau (KfW) and German Bunds has narrowed from about
-80 basis points in October 2022 to just -30 basis points today (Slide 6, right-hand side).^[13]

Furthermore, in the repo market, we have observed a steady and measurable rise in overnight rates and a convergence across collateral classes (Slide 7, left-hand side).^[14]

Over the past few years, transactions secured by German government collateral, in particular, were trading at a significant premium over others. This premium has declined considerably, reflecting a reduction in collateral scarcity.

Finally, in the United States, the spread between AAA corporate bonds and US Treasuries has declined from almost 100 basis points in 2022 to 40 basis points today (Slide 7, right-hand side). It currently stands close to its historical low.

Global savings glut has turned into a global bond glut

All this suggests that, today, market participants value the liquidity and safety services of government bonds less than they did in the past, as the net supply of government bonds has increased and continues to increase at a notable pace.

In Germany and the United States, for example, the sovereign bond free float as a share of the outstanding volume has increased by more than ten percentage points over the past three years (Slide 8, left-hand side). It is projected to steadily increase further in the coming years.

So, the global savings glut appears to have turned into a global bond glut, which reduces the marginal benefit of holding government bonds.

There are several factors contributing to the rise in the bond free float.^[15]

First, and most importantly, net borrowing by governments remains substantial. The public deficit is estimated to have been around 5% of GDP across advanced economies last year, and it is expected to decline only marginally in the coming years (Slide 8, right-hand side).

Second, rising geopolitical fragmentation is likely to be contributing to a drop in demand for government bonds in some parts of the world.

In the United States, for example, there has been a marked decline in the share of foreign official holdings of US Treasury securities since the global financial crisis (Slide 9, left-hand side). It is now at its lowest level in more than 20 years.^[16] The US Administration’s attempt to reduce the current account deficit is bound to further depress foreign holdings of US Treasuries.

Third, central banks are in the process of normalising their balance sheets (Slide 9, right-hand side). Unlike when central banks announced large-scale asset purchases, the effects of quantitative tightening (QT) on yields are likely to materialise only over time, as many central banks take a gradual approach when reducing the size of their balance sheets.

Higher r* calls for cautious approach to rate easing

These developments have three important implications for monetary policy.

One is that central banks are dialling back policy restriction in an environment in which structural factors are putting upward pressure on the real equilibrium rate. Recent analysis by the International Monetary Fund (IMF), for example, suggests that a fall in the convenience yield to pre-2000 average levels could raise natural rates by about 70 basis points.^[17]

While a significant part of these effects may have already materialised, other factors could push real rates up further over the medium term. The IMF projects that, in the coming years, overall global investment – public and private – will reach the highest share of GDP since the 1980s, also reflecting borrowing needs associated with the digital and green transitions as well as defence spending.

Recent global initiatives aimed at boosting the development and use of artificial intelligence underscore these projections. Overall, these forces may well be larger than those that continue to weigh on the real equilibrium rate, such as an ageing population.

Central banks, therefore, need to proceed cautiously. We do not fully understand how the pervasive changes to our economies are affecting the steady state, or what the path to the new steady state will look like.

In this environment, the most appropriate way to conduct monetary policy is to look at the incoming data to assess how fast, and to what extent, changes to our key policy rates are being transmitted to the economy.

For the euro area, this assessment suggests that, over the past year, the degree of policy restraint has declined appreciably – to a point where we can no longer say with confidence that our policy is restrictive.

According to the most recent bank lending survey, for example, 90% of banks say that the general level of interest rates has no impact on the demand for corporate loans, with 8% saying that it contributes to boosting credit demand (Slide 10, left-hand side). This is a marked shift from a year ago when a third of all banks reported that interest rates were weighing on credit demand.

For mortgages, the evidence is even more striking. Today almost half of the banks report that the level of interest rates supports loan demand, while a year ago more than 40% said the opposite. As a result, a net 42% of banks report an increase in the demand for mortgages, close to the historical high.

Survey evidence is gradually showing up in actual lending data. Credit to firms expanded by 1.5% in December, the highest rate in a year and a half, and credit to households for house purchases grew by 1.1% (Slide 10, right-hand side).

Strong bank balance sheets are contributing to the recovery and, given the lags in policy transmission, further easing is still in the pipeline.

Lending conditions are also relatively favourable from the perspective of borrowers. The spread between the composite cost of borrowing for households and sovereign bond yields is well below the level seen over most of the 2010s and is now close to the historical average (Slide 11).^[18]

And while some maturing loans from the period of very low interest rates will still need to be refinanced at higher rates, over time this debt has declined in real terms and interest payments as a fraction of net income are buffered by rising nominal wages.

Overall, therefore, it is becoming increasingly unlikely that current financing conditions are materially holding back consumption and investment. The fact that growth remains subdued cannot and should not be taken as evidence that policy is restrictive.

As the ECB’s most recent corporate telephone survey suggests, the continued weakness in manufacturing is increasingly viewed by firms as structural, reflecting a combination of high energy and labour costs, an overly inhibitive and uncertain regulatory environment and increased import competition, especially from China.^[19]

Such structural headwinds reduce the economy’s sensitivity to changes in monetary policy.

QE’s impact on r* is reducing its effectiveness

The second implication from the impact of the convenience yield on r* is related to the use of balance sheet policies.

If QE raises the convenience yield by reducing the net supply of government bonds, it may ultimately lower the real equilibrium interest rate. Importantly, this channel – the convenience yield channel – is distinct from the term premium channel.^[20]

So, doing QE could be like chasing a moving target.

It reduces long-run rates by compressing the term premium.^[21] But by making investors willing to pay a higher safety premium when the supply of safe assets shrinks, it may also reduce the interest rate level below which monetary policy stimulates growth and inflation.

This can also be seen by looking at how QE changes the balance of savings and investments. Fiscal deficits absorb private savings and thereby increase r*. By doing QE, central banks absorb fiscal deficits and thereby lower r*.

In other words, central bank balance sheet policies may be less effective than previously thought.^[22] This could be an additional factor explaining why large-scale asset purchases did not succeed in bringing inflation back to 2% before the pandemic.

Of course, the same logic holds true when central banks reduce their balance sheets.

If QE contributed to depressing r*, QT will raise it. Any rise in real rates may then be less consequential for growth and inflation. It would then be misguided to compensate for higher long-term interest rates resulting from QT with lower short-term rates.

This is indeed what recent research suggests: QT announcements tend to cause a significant decline in the convenience yield of safe assets.^[23]

There is one caveat, however.

QE and QT are implemented by issuing and absorbing central bank reserves, which themselves are safe assets – in fact, reserves are the economy’s ultimate safe asset because they are free of liquidity and interest rate risk.^[24]

Banks therefore highly value the convenience services of central bank reserves. So, when evaluating the effects of central bank balance sheet policies on r*, it is necessary to consider both the asset and liability side.

Research by economists from the Bank of England does exactly that.^[25] They show that the effects of QT on the real equilibrium rate depend on the relative strength of two factors.

One is the effect on the bond convenience yield, which causes r* to rise as the supply of government bonds increases.

The other is the effect on the convenience yield of reserves. That effect is highly non-linear: when reserves are scarce, banks are willing to pay a high mark-up on wholesale interest rates, as was evident in the United States in 2019 when repo rates surged strongly.

So, if QT leads to a scarcity of reserves, it may cause the overall convenience yield to rise, and hence equilibrium rates to fall.

Convenience of reserves and the ECB’s operational framework

At the ECB, we took this factor into account when we reviewed our operational framework last year.^[26] This is the third implication for monetary policy.

The new framework allows banks to demand as many reserves as they find optimal at a spread that is 15 basis points above the rate which the ECB pays to banks when they deposit their excess reserves with us. So, the opportunity cost of holding reserves is comparatively small, given the convenience services reserves provide to banks.

In addition, our framework allows banks themselves to generate an increase in safe assets – by pledging non-high quality liquid assets (non-HQLA) in our lending operations. In doing so, banks on average generate € 0.92 of net HQLA for every euro that they borrow from the Eurosystem.^[27]

Our framework therefore recognises that years of crises, more stringent regulatory requirements and the advance of new technologies – some of which increase the risk of “digital” bank runs – imply that banks may wish to hold larger liquidity buffers than they historically have done.

Supplying central bank reserves elastically will ensure that reserves will not become scarce as balance sheet normalisation proceeds. And if banks access our standard refinancing operations when they are in need of liquidity, they will also not have to adjust their lending activities in response to the decline in reserves, as is sometimes feared.^[28]

For now, the recourse to our lending operations has been limited, as there is still ample excess liquidity. But as we transition over the coming years to a world in which reserves are less abundant, banks will increasingly start borrowing reserves via our operations.

Three ideas could be explored to make this transition as smooth as possible.

First, regular testing requirements in the counterparty framework could help ensure operational readiness while also allowing counterparties to become more comfortable with participating in our operations. A lack of operational readiness was one of the factors contributing to the March 2023 turmoil in the United States.^[29]

Second, and related, obtaining central bank funding requires thorough collateral management, especially if the collateral framework is as broad as the Eurosystem’s. For non-HQLA collateral, in particular, the pricing and due diligence process can be operationally complex and time-consuming.

For this reason, central banks sometimes require counterparties to pre-position collateral to ensure that funding can be readily obtained.^[30] In the euro area, some banks already pre-position collateral voluntarily, in particular non-marketable collateral which cannot be used in private repo markets (Slide 12, left-hand side).

Banks could be further encouraged to mobilise with the central bank the collateral that is eligible but currently stays idle on their balance sheets. This would increase operational readiness, mitigate financial stability risks and reduce precautionary reserve demand as banks would have higher certainty that they can access central bank liquidity at short notice.

In the Eurosystem, given its broad collateral framework, such an approach may be more effective in helping banks adapt their liquidity management to the characteristics of a demand-driven operational framework compared with a blanket requirement to pre-position collateral.

Finally, in some jurisdictions central bank operations are fully integrated into the platforms commonly used by banks to operate in private repo markets.

This offers banks a number of advantages, including seamless access to transactions with the market and with the central bank, and – depending on the design of clearing arrangements and accounting rules – it could potentially allow banks to net out their positions, thereby freeing up valuable balance sheet space.

Offering banks the possibility to access Eurosystem refinancing operations through a centrally cleared infrastructure could contribute to making our operations more economical in an environment in which dealer balance sheets are increasingly constrained (Slide 12, right-hand side).^[31]

The design of such arrangements should preserve equal treatment across our diverse range of counterparties, regardless of their size, jurisdiction and business model, maintain the possibility to mobilise a broad range of collateral and be compatible with our risk control framework.

Further reflection is needed on these considerations, including a comprehensive assessment of the benefits and costs.

Conclusion

Let me conclude.

The shocks experienced since the pandemic led to an abrupt end of the secular downward trend in real interest rates. Whether this will be merely an interlude, or the beginning of a new era, is inherently difficult to predict.

But looking at the ongoing transformational shifts in the balance of global savings and investments, as well as at the fundamental challenges facing our societies today, higher real interest rates seem to be the most likely scenario for the future.

This has implications for our monetary policy. Central banks will need to adjust to the new environment, both to secure price stability over the medium term and to implement monetary policy efficiently.

Thank you.

MIL OSI Economics –

February 26, 2025

MIL-OSI New Zealand: Infrastructure Pipeline continues to grow

Source: New Zealand Government

The latest quarterly update from the New Zealand Infrastructure Commission shows that the value of infrastructure projects in the National Infrastructure Pipeline totals $204 billion, an increase of $60.4 billion since the last quarter, Infrastructure Minister Chris Bishop says.

The Pipeline is managed by the New Zealand Infrastructure Commission and provides a national view of current and future infrastructure projects, from roads, to water infrastructure, to schools, and more.

“The December 2024 Pipeline update shows there are over 1500 projects currently under construction, worth a total of $48.6 billion. There are $107.9 billion of infrastructure projects that have a funding source confirmed, an increase of $8.1 billion from previous quarter,” says Mr Bishop.

“A strong pipeline of infrastructure projects means a growing economy with more jobs and more opportunities for Kiwis.

“The Commission’s projections show that more than $15.1 billion is expected to be spent across all infrastructure sectors in 2025. This spend is equivalent to around 3.6 per cent of our GDP. The transport sector accounts for the biggest spend, with more than $7.7 billion – 51 per cent of our total spend in 2025.

“The Commission continues to work with infrastructure providers to improve the transparency and quality of information that is available. A more complete Pipeline improves the effectiveness and value that we can gain from this tool.

“The Pipeline now includes information on more than 7,600 infrastructure projects that are underway or being planned by 147 organisations. A more robust and transparent pipeline is good for New Zealand infrastructure. It can help us understand where there are pressures and opportunities for the construction sector.

“The estimated value of projects in the Pipeline changes over time as infrastructure providers complete projects, update their project planning, improve the scope and quality of the information they submit, and as more organisations contribute their project information.

“It’s great to see the number of organisations that contribute to the Pipeline continues to grow. There are now 108 organisations contributing, which include central government, local government, and the private sector

“In December eleven more councils joined the Pipeline – making 59 in total. Local government has a major role in New Zealand’s infrastructure, and I encourage the remaining councils and any infrastructure provider who is not yet contributing to reach out to the Commission.”

Read the latest Pipeline update: https://tewaihanga.govt.nz/the-pipeline/pipeline-snapshot

MIL OSI New Zealand News –

February 26, 2025

MIL-OSI Asia-Pac: Union Home Minister and Minister of Cooperation Shri Amit Shah addresses the closing ceremony of Global Investors Summit-2025, in Bhopal, Madhya Pradesh

Source: Government of India

Union Home Minister and Minister of Cooperation Shri Amit Shah addresses the closing ceremony of Global Investors Summit-2025, in Bhopal, Madhya Pradesh

A stable and strong government is working in MP under the leadership of Prime Minister Shri Narendra Modi, which has opened the doors of development here

The Madhya Pradesh government will soon implement the MoUs worth Rs. 30 lakh 77 thousand crore signed during the Global Investors Summit

This investment summit will also play an important role in Modi ji’s resolve to make a developed India and the country the third largest economy in the world

Investors in Madhya Pradesh will get transparent governance, sustainable policies, and a hands-on administration

Madhya Pradesh also has land, labour force, educated youth and skilled workforce and there are avenues and opportunities for mines, minerals and industries

Madhya Pradesh has tried to develop the state by holding separate investment summits of every region, which will show the direction to many states

The transparent governance of the Madhya Pradesh government has attracted a lot of people to invest

Posted On: 25 FEB 2025 8:23PM by PIB Delhi

Union Home Minister and Minister of Cooperation Shri Amit Shah addressed the closing ceremony of Global Investors Summit-2025, in Bhopal, Madhya Pradesh, today. Many dignitaries including Chief Minister of Madhya Pradesh, Dr. Mohan Yadav were present on the occasion.

In his address, Union Home Minister and Minister of Cooperation Shri Amit Shah stated that during this two-day Global Investors Summit, MoUs worth a total of 30 lakh 77 thousand crore rupees were signed. He said that several MoUs will be implemented on the ground and help the state government establish not only large industries but also ancillary industries in Madhya Pradesh. Shri Shah said that more than 200 Indian companies, over 200 global CEOs, more than 20 unicorn founders, and representatives from more than 50 countries have come to invest and see the environment in Madhya Pradesh during the two-day summit. He stated that this time, Madhya Pradesh has done a new experiment by organizing separate investment summits for each sector, aiming for the overall development of the entire state, which will guide many states in the coming days.

Shri Amit Shah said that in this summit, Madhya Pradesh has made efforts to explore all avenues for unlocking its industrial, sectoral and global potential for development. He mentioned that this summit has given a new dimension to the development of Madhya Pradesh. Shri Shah said that Madhya Pradesh is full of rich cultural heritage of our country and the state is making several efforts to realize the mantra of ‘Vikas Bhi Virasat Bhi’ given by Prime Minister Shri Narendra Modi.

Union Home Minister said that Prime Minister Modi has set a target before the youth and 130 crore people of the country to make India a fully developed nation by 2047 and the world’s third largest economy by 2027. He said that this Investment Summit of Madhya Pradesh will not only help in achieving both these goals but also make a huge contribution in achieving these goals. Shri Shah said that in Prime Minister Modi’s vision of Team India, the Government of India and all state governments come together with a goal to work towards the development of the entire nation and this event has taken that vision forward.

Shri Amit Shah said that many dimensions of increasing both local and global investment have been achieved in this summit. He said that this summit will also open many doors of skill development for India’s ‘Amrit generation’. Shri Shah said that by creating synergy between automation and job creation, the policies made by the Madhya Pradesh government for different sectors will move forward and this summit will also help in making India a manufacturing hub.

Union Home Minister and Minister of Cooperation underlined that under the leadership of Prime Minister Shri Narendra Modi, there is a stable and strong administration working in Madhya Pradesh, which is creating new avenues of development. He emphasized that, as the heart of India, Madhya Pradesh enjoys a strategic location complemented with robust infrastructure. The state boasts of a large pool of skilled workers and an efficient administrative ecosystem that fosters growth. He highlighted that Madhya Pradesh has an unparalleled market access, with its rapidly increasing demand-driven economy. The transparent governance of the state has significantly boosted investor confidence. With ample land resources, a dedicated workforce, rich mineral resources, and numerous industrial opportunities, Madhya Pradesh stands as a prime destination for investment. The Home Minister affirmed that Madhya Pradesh is a major hub for investment in every aspect in India.

Shri Amit Shah recalled that there was a time when Madhya Pradesh was counted among the BIMARU states, but after 20 years of continuous governance of our party, the state has undergone a remarkable transformation. He highlighted the development of a 5 lakh-kilometer road network, the presence of six operational airports, and an impressive energy capacity of 31 GW, including 30 per cent clean energy. He emphasized that prestigious institutions such as IIM, IIT, AIIMS, IITM, NIFT and NIFD are equipping the youth of Madhya Pradesh with the skills needed to seize emerging opportunities. With one of the richest reserves of minerals in the country, Madhya Pradesh has also emerged as the cotton capital of India, contributing 25 per cent of the nation’s organic cotton supply. Moreover, the state holds a significant position in the food processing sector. The Home Minister noted that the Madhya Pradesh government has designated 2025 as the “Year of Industries” to boost industrial growth. He also lauded the state for being the first in the country to pass the Jan Vishwas Bill, aimed at enhancing ease of doing business.

Union Home Minister and Minister of Cooperation stated that under Prime Minister Shri Narendra Modi’s leadership over the past 10 years, India’s foreign exchange reserves, Gross Domestic Product (GDP), and per capita income have doubled. He emphasized that the Modi government has built a strong foundation for a developed India, paving the way for new dimensions of growth and progress in coming decade.

Shri Amit Shah highlighted that in the last 10 years, Prime Minister Narendra Modi has brought 54 crore people into the banking system. He said that these people were without bank accounts for 75 years after independence. He emphasized that PM Modi has ensured financial inclusion for these citizens, marking a major transformation in the country’s banking sector. He further noted that significant economic reforms have been undertaken during this period, including reducing insolvency and bankruptcy cases, bringing Non-Performing Assets (NPAs) below 2.5 per cent, successfully implementing Goods and Services Tax (GST), and streamlining single-window clearance for businesses. Shri Shah pointed out the massive infrastructure growth under PM Modi’s leadership, with addition of 60,000 kilometers of highways, building 8 lakh kilometers of rural roads and the number of airports increasing from 74 to 157. He also highlighted the doubling of railway expansion and cargo handling capacity. He asserted that through several new initiatives, India has become founder of several sectors which will decide the global economic direction for the next 25 years.

Union Home Minister stated that the Investment Summit in Madhya Pradesh is not just a catalyst for the state’s growth but also a significant boost for India’s overall development. He expressed confidence that in the coming years, Madhya Pradesh will emerge as a leading hub for major industries in the country. He emphasized that the state will continue to uphold transparent governance, implement sustainable policies, and foster a proactive administration that works hand in hand with investors and stakeholders.

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RK/VV/PR/PS

(Release ID: 2106241) Visitor Counter : 75

Read this release in: Hindi

MIL OSI Asia Pacific News –

February 26, 2025

MIL-OSI Asia-Pac: Digital Transformation of Justice: Integrating AI in India’s Judiciary and Law Enforcement

Source: Government of India

Posted On: 25 FEB 2025 8:22PM by PIB Delhi

“Technology will integrate police, forensics, jails, and courts, and will speed up their work as well. We are moving towards a justice system that will be fully future-ready.”

– Prime Minister, Shri Narendra Modi

Introduction

Artificial Intelligence (AI) is driving a transformative shift in India’s judiciary and law enforcement, enhancing efficiency, accessibility, and decision-making. By integrating AI into judicial processes, case management, legal research, and law enforcement, India is streamlining operations, reducing delays, and making justice more accessible to all.

The judiciary faces longstanding challenges such as case backlogs, language barriers, and the need for digital modernization. AI-powered technologies—including Machine Learning (ML), Natural Language Processing (NLP), Optical Character Recognition (OCR), and Predictive Analytics are now being leveraged to automate administrative tasks, improve case tracking, and enhance crime prevention.

Initiatives like e-Courts Project Phase III, AI-assisted legal translation, predictive policing, and AI-driven legal chatbots are reshaping the legal landscape, making processes faster, smarter, and more transparent. While the adoption of AI presents challenges, particularly in data security, ethical governance, and legal adaptation, its potential to strengthen India’s justice system is unparalleled.

This article explores the transformative role of AI in India’s judiciary and law enforcement, highlighting its applications, impact, and future potential in ensuring a more efficient, transparent, and citizen-centric justice system.

AI in the e-Courts Project (Phase III) – A Leap Forward in Judicial Digital Transformation

The e-Courts Project, initiated under the aegis of the Supreme Court of India, is a transformative initiative aimed at modernizing judicial functions through digital innovation. In Phase III, the project integrates advanced Artificial Intelligence (AI) solutions to enhance case management and administrative efficiency across courts in India. This phase builds on earlier digital transformation efforts to deliver a more responsive and effective judicial system.

Key AI Applications in e-Courts

Automated Case Management
AI-driven tools are now deployed for smart scheduling, case prioritization, and proactive backlog reduction. These systems use predictive analytics to forecast potential delays and adjournments, ensuring that judicial resources are optimally allocated for timely case resolution.

AI in Legal Research and Documentation
Advanced AI-powered tools assist judges and lawyers by streamlining legal research, identifying relevant case precedents, and summarizing judgments. This technology not only expedites the research process but also enhances the quality and consistency of legal documentation.

AI-Assisted Filing and Court Procedures
The integration of Optical Character Recognition (OCR) and Natural Language Processing (NLP) is revolutionizing document digitization. These technologies automate the filing of court documents, ensuring faster processing and reducing manual errors in the documentation process.
AI for User Assistance and Chatbots
AI-driven virtual legal assistants and chatbots are available to provide litigants with real-time information on case status, procedural guidance, and essential legal updates. This round-the-clock digital support makes the judicial system more accessible and user-friendly, especially for individuals unfamiliar with legal procedures.
AI for Predictive Analysis in Case Outcomes
AI models analyze historical judgments and case data to offer predictive insights into potential case outcomes and risk assessments. This capability helps judicial officers to formulate more informed decisions and develop effective case strategies, contributing to a proactive judicial framework.

Budget and Implementation

The Government of India has allocated a total of ₹7210 Crore for the e-Courts Phase III project, reflecting a strong commitment to judicial digital transformation. Within this budget, ₹53.57 Crore is specifically earmarked for the integration of AI and Blockchain technologies across High Courts in India. This financial commitment underscores the importance of leveraging advanced technology to achieve greater efficiency, transparency, and accessibility in the judicial system.

AI for Legal Translation and Language Accessibility

India’s judicial system operates primarily in English, creating barriers for non-English-speaking litigants. AI-driven legal translation tools are being deployed to make legal documents and judgments accessible.

Key Developments in AI-Assisted Legal Translation

AI in Law Enforcement and Crime Prevention

AI is being integrated into policing and law enforcement to enhance crime detection, surveillance, and criminal investigations.

Key AI Applications in Law Enforcement

Predictive Policing
AI models analyze crime patterns, high-risk areas, and criminal behaviour, enabling law enforcement to take proactive measures.

AI for Surveillance and Investigation
- Automated drones for crime scene monitoring and suspect tracking.
- Facial recognition systems integrated with national criminal databases.
- AI-powered forensic analysis to examine evidence and digital crime trails.

AI in FIR Filing and Judicial Proceedings
- AI-driven speech-to-text tools assist in real-time FIR filing and case documentation.
- AI is improving witness testimony analysis and courtroom evidence evaluation.

Data-Driven Crime Tracking and Intelligence Systems
- AI enhances Crime and Criminal Tracking Network Systems (CCTNS).
- Integration with e-Prisons and e-Forensics databases.

AI and 5G: Vimarsh 2023 Hackathon for Law Enforcement

The Vimarsh 2023 5G Hackathon, organized by the Department of Telecommunications (DoT) and Bureau of Police Research & Development (BPR&D), Ministry of Home Affairs, explored AI-driven innovations for crime prevention.

Innovations Demonstrated at Vimarsh 2023

AI-assisted FIR filing using voice recognition.
Drone-based crime surveillance and suspect tracking.
Augmented Reality (AR) applications for crime scene investigations.
AI-driven predictive analytics for national security and policing.

Conclusion

Artificial Intelligence is transforming India’s judiciary and law enforcement by enhancing case management, legal research, crime prevention, and language accessibility. AI-driven tools such as predictive analytics, automated documentation, chatbots, and smart policing systems are improving efficiency and governance in the legal system. However, responsible AI adoption requires strong data security, legal reforms, and transparency to ensure it supports rather than replaces human judgment in judicial processes. The future of AI in law and justice will be shaped by AI-powered legal research, blockchain-secured case records, judicial transparency through AI analytics, and enhanced cybersecurity in law enforcement.

With sustained government investment and regulatory oversight, AI has the potential to make India’s justice system faster, more accessible, and transparent for all citizens.

References

Click here to download PDF

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Santosh Kumar/ Sheetal Angral / Vatsla Srivastava

(Release ID: 2106239) Visitor Counter : 67

MIL OSI Asia Pacific News –

February 26, 2025

MIL-OSI Asia-Pac: Union Minister of Commerce & Industry Shri Piyush Goyal highlights ports, shipping, and logistics as key to India’s economic growth

Source: Government of India (2)

Union Minister of Commerce & Industry Shri Piyush Goyal highlights ports, shipping, and logistics as key to India’s economic growth

Shri Goyal calls for industry suggestions to boost flagging of vessels in India

Shri Goyal proposes hybrid training model to address growing seafarer demand

Posted On: 25 FEB 2025 8:14PM by PIB Delhi

Ports, shipping and the logistics sector are the lifelines that nourish the country’s economy. Trade like rivers flows freely and the shipping sector connects opportunities around the world with India. This was stated by Union Minister of Commerce & Industry Shri Piyush Goyal during his address as the Chief Guest at the 12th Biennial International Conference on Ports, Shipping & Logistics 2025 today in Mumbai.

Shri Goyal stated that ship building opportunities in the country are high and the Government is looking at ways to promote the sector. He urged the industry to suggest ways to make flagging of vessels in India attractive. “India has the advantage to allow cabotage of vessels and promote imports coming in Indian flagged vessels permitted within the WTO rules, but does not have enough flagged vessels to take advantage of the regulations”, he noted. The Minister urged the participants to suggest ways at the State and Central level to help companies come in flagged vessels in India.

Shri Goyal further stated that India has doubled its port capacity in the last decade and has significantly brought down the turnaround time of ships. However insisted that work remains towards strengthening the logistics ecosystem.

95% of India’s trade volume goes through ports and the 7,500 km coastline acts as a major enabler for the trade, he pointed out, asserting the immense potential the sector has to grow over the next few years. He also stressed the need for the logistics system to be more conducive to handle the current traffic at ports. “Unified Logistics Interface Platform (ULIP) has been introduced to aid logistics, but more ideas are needed to provide the whole ecosystem-linked logistics at ports”, he said.

The Minister further called for a hybrid mode of training to meet the growing demand of seafarers in the sector. Container ownership, container manufacturing, faster speed of exports, ease of congestion are the areas the sector needs improvement, he stressed.

India stands out as an oasis amidst the global trade turmoil, the Minister noted, hoping the country would continue to grow and contribute towards the greater good of the world. He pointed out the maritime trade and logistics sector as the backbone for a Viksit Bharat.

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Abhijith Narayanan/Asmitabha Manna

(Release ID: 2106237) Visitor Counter : 45

MIL OSI Asia Pacific News –

February 26, 2025

MIL-OSI Asia-Pac: Dr. Mansukh Mandaviya Interacts with Newly Inducted Assistant PF Commissioners of EPFO; Urges Them to Drive Prime Minister’s Vision of Viksit Bharat by 2047

Source: Government of India (2)

Dr. Mansukh Mandaviya Interacts with Newly Inducted Assistant PF Commissioners of EPFO; Urges Them to Drive Prime Minister’s Vision of Viksit Bharat by 2047

Union Minister Unveils New Logo of Pandit Deendayal Upadhyaya National Academy of Social Security of EPFO

Posted On: 25 FEB 2025 8:03PM by PIB Delhi

Union Minister for Labour & Employment and Youth Affairs & Sports, Dr. Mansukh Mandaviya addressed newly inducted Assistant PF Commissioners (APFCs) of EPFO at Vigyan Bhawan in New Delhi today. The event was also attended by Sushri Shobha Karandlaje, Union Minister of State for Labour & Employment and Micro, Small & Medium Enterprises, and Shri Ramesh Krishnamurthi, Central Provident Fund Commissioner, EPFO.

While interacting with 145 probationary officers of EPFO, Dr. Mandaviya commended their hard work and perseverance, emphasizing that these qualities had led them to this milestone and should be upheld throughout their careers. Addressing the newly appointed commissioners, Union Minister highlighted the key attributes of success—commitment, dedication, integrity, creativity, and adherence to strong values and ethos.

Union Minister urged them to embrace the Panch Pran envisioned by Prime Minister Narendra Modi and take on the responsibility of contributing towards realising Prime Minister’s vison of Viksit Bharat by 2047. During their interaction with Union Minister, the probationers expressed their aspirations to serve all sections of society by strengthening social security.

Reflecting on the sacrifices made for India’s independence, Dr. Mandaviya inspired the officers to dedicate themselves to the nation’s progress, reinforcing the vision of a Viksit Bharat by 2047. He encouraged them to embrace continuous learning and set an example for future officers. He further emphasized that every citizen plays a crucial role in national development, and by fulfilling their responsibilities with dedication and integrity, they contribute significantly to the country’s growth and progress.

Sushri Shobha Karandlaje, in her address, extended her congratulations to the newly appointed APFCs on joining the country’s largest social security organization. She emphasized their significant responsibility in serving society and underscored the importance of prioritizing nation first by resolution of member grievances. She encouraged them to leverage their domain expertise to contribute effectively towards realizing the vision of Viksit Bharat.

Union Minister also unveiled a new logo for Pandit Deendayal Upadhyaya National Academy of Social Security (PDUNASS), which plays a key role in building the capacity of EPFO officers, employees, employers, and officials from other departments. The logo was designed by the National Institute of Design, Ahmedabad. Additionally, the Zonal Training Institutes of PDUNASS in Faridabad, Ujjain, Chennai, and Kolkata have been rebranded under this new identity.

EPFO stands as a leader in social security, dedicated to safeguarding the financial well-being of its members. Building on this commitment, the organization has launched the Program for Field Research Excellence (PFRE)—a strategic initiative aimed at leveraging the expertise of EPFO officers to drive innovation and enhance service delivery. Monitored and supported by the Pandit Deendayal Upadhyaya National Academy of Social Security, PFRE encourages voluntary officer participation in research, fosters collaboration with reputed institutions and enables contributions to impactful organizational projects. Over 100 officers have shown interest, with the flexibility to conduct research at their own stations with PDUNASS support.

The event concluded with a vote of thanks to the esteemed dignitaries, reaffirming EPFO’s commitment to expanding social security coverage and advancing the welfare of India’s workforce.

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Himanshu Pathak

(Release ID: 2106231) Visitor Counter : 18

MIL OSI Asia Pacific News –

February 26, 2025

MIL-OSI Asia-Pac: Director General, ILO, Mr. Gilbert F. Houngbo Visits One of Largest Global Capability Centres (GCC) in Gurugram

Source: Government of India

Director General, ILO, Mr. Gilbert F. Houngbo Visits One of Largest Global Capability Centres (GCC) in Gurugram

India’s GCCs Leading Strategic Enterprise Transformation

GCCs Emerge as Centres of Excellence and Innovation Hubs

Posted On: 25 FEB 2025 7:41PM by PIB Delhi

During his ongoing visit to New Delhi, a delegation of ILO, headed by Director General, ILO, Mr. Gilbert F. Houngbo, visited the HSBC Global Capability Centre (GCC) today in Gurugram. The visit was organized by Ministry of Labour & Employment and Confederation of Indian Industry (CII). Ms. Sumita Dawra, Secretary, Ministry of Labour & Employment, Ms. Michiko Miyamoto, Country Director, ILO Mr. Arindam Bagchi, Ambassador and Permanent Representative of India to the United Nations in Geneva and other senior officials also participated.

Secretary, MoL&E, Ms. Sumita Dawra, underscored the contribution of GCCs and growing prominence of India as a key pillar of global digital economy. She highlighted that India is home to over 1,700 GCCs, employing 1.9 million professionals and generating $64.6 billion in revenue as of 2024. Key GCC hubs are located in Bengaluru, Hyderabad, Pune, Chennai, Mumbai, and the National Capital Region (NCR). The sector is projected to expand to $105 billion by 2030, with around 2,400 GCCs employing over 2.8 million people, solidifying India’s role as a global hub for enterprise operations and innovation.

DG, ILO, Mr. Gilbert F. Houngbo, mentioned that India is becoming more competitive owing to its large and diverse talent pool that it can tap into for innovation and business development. He observed that growing proliferation of GCCs across upcoming sectors like AI, cybersecurity, cloud computing, semiconductors, etc., is a new trend.

With 40% of digital transformation projects in GCCs, India is now a center for high-value technology-driven solutions. GCCs emerging from different geographies viz, Germany, UK, Japan, Nordic countries, is another significant development observed in recent years, it was further informed.

A significant shift towards diversification of operations, with evolution towards higher value services, is seen, as GCCs in India transition from data processing to knowledge processing over the years.

With availability of talented pool of young professionals, India is emerging as an innovation hub. Hybrid work models, diversity, and upskilling in AI, cybersecurity, and blockchain and industry-academia partnerships are creating future-ready professionals. Emergence of GCCs in India has contributed positively to economic growth, job creation, technology transfer and skill development, among others benefits for local economy.

It was also discussed that a case study on India’s growth story as a GCC hub, while promoting business growth along with ensuring social protection and regulatory compliances, would be developed in partnership with ILO and showcased at various international forums.

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Himanshu Pathak

(Release ID: 2106222) Visitor Counter : 42

MIL OSI Asia Pacific News –

February 26, 2025

MIL-OSI Asia-Pac: HKETO Jakarta celebrates Year of Snake in Penang

Source: Hong Kong Government special administrative region

HKETO Jakarta celebrates Year of Snake in Penang
HKETO Jakarta celebrates Year of Snake in Penang
************************************************

The Hong Kong Economic and Trade Office, Jakarta (HKETO Jakarta) hosted a Chinese New Year dinner in Penang, Malaysia, today (February 25) to celebrate the Year of the Snake. Some 220 guests from the local government, business, academic, cultural and media sectors attended the event. In her welcome speech, the Director-General of the HKETO Jakarta, Miss Libera Cheng, said that Hong Kong and Penang share a similar historic and cultural background. The HKETO Jakarta worked closely with the Penang State Government last year to strengthen bilateral exchanges, working together to facilitate numerous Hong Kong teams’ participation at the Penang International Dragon Boat Regatta and the Penang International Lion Dance-on-Stilts Competition, as well as the inaugural performances by the Hong Kong Chinese Orchestra and the Hong Kong Dance Company in Penang. “Over the past year, Hong Kong-based airlines have significantly expanded passenger services according to the direction set under the Policy Address. Hong Kong has now become one of Penang International Airport’s most frequent routes beyond the Southeast Asia region,” said Miss Cheng. She added that visitor arrivals from Malaysia increased by 50 per cent year-on-year in 2024, fully reflecting Hong Kong’s glamour. With the grand opening of Kai Tak Sports Park on March 1, a host of sports and entertainment events are set to take place at this iconic venue. Meanwhile, Hong Kong is also committed to enriching visitors’ travel experience, including products related to the panda economy. The Hong Kong Special Administrative Region Government will take forward the relevant measures in the Development Blueprint for Hong Kong’s Tourism Industry 2.0 promulgated in December 2024 to attract more tourists from Malaysia and beyond. “The robust air connectivity of our two cities will also enable Penang enterprises to export a diverse range of products to the world seamlessly via Hong Kong, leveraging Hong Kong International Airport’s advantages as the world’s busiest cargo airport and the various high value-added logistics facilities therein.” Dignitaries attending the dinner included the Chief Minister of Penang, Mr Chow Kon Yeow; the Chinese Consul-General in Penang, Mr Zhou Youbin; the Director of Malaysia of the Hong Kong Trade Development Council, Ms Hoh Jee Eng; the President of the Hong Kong-Malaysia Business Association, Dato’ Dixon Chew, and senior representatives from other major local business chambers. Also joining the event were the Penang State Executive Councillor for Tourism and Creative Economy, Mr Wong Hon Wai, the Penang State Executive Councillor for Youth, Sports and Health, Mr Daniel Gooi Zi Sen, and other key local officials.

Ends/Tuesday, February 25, 2025Issued at HKT 20:42

NNNN

MIL OSI Asia Pacific News –

February 26, 2025

MIL-OSI Asia-Pac: Prakriti 2025 – International Conference on Carbon Markets

Source: Government of India (2)

Prakriti 2025 – International Conference on Carbon Markets

UN Goodwill Ambassador & Actor Dia Mirza attends Prakriti 2025

Prakriti 2025: International Conference on Carbon Markets Concludes with Insights from National, International, and Government Experts

Posted On: 25 FEB 2025 5:53PM by PIB Delhi

PRAKRITI 2025 (Promoting Resilience, Awareness, Knowledge, and Resources for Integrating Transformational Initiatives), the International Conference on Carbon Markets, successfully concluded on its second day, bringing together national and international experts, policymakers, industry leaders, researchers, and practitioners. The conference was inaugurated on February 24, 2025, by Shri Manohar Lal, Hon’ble Minister of Power and Housing & Urban Affairs. As a flagship initiative of the Government of India, organized by the Bureau of Energy Efficiency under the patronage of the Ministry of Power and the Ministry of Environment, Forest and Climate Change, PRAKRITI 2025 served as a premier platform for in-depth discussions on global carbon market trends, challenges, and future pathways.

Ms. Dia Mirza, Actor, Producer, National Goodwill Ambassador for United Nations graced the event with her presence. She participated in an impactful fireside chat moderated by Mr. Saurabh Diddi, Director, Bureau of Energy Efficiency. Speaking of her role in making a change in the climate change scenario, she said that, “As an individual, I have the capacity to change the way I live and hopefully thereby bring some change in the world. Big change will only occur when it starts from the top down because behaviours sometimes take hundreds of years to change.” She commended the Government of India for its initiatives under LiFE (Lifestyle for Environment), highlighting its role in promoting mindful consumption and leading a global movement. Additionally, she emphasized the importance of engaging children and youth to drive meaningful change in climate conversations. Concluding the interview, she shared her vision for sustainability, stating, “My dream sustainability project, if finances didn’t have any upper limit, would be one, to eradicate each and every unit of single use plastics, and two, a scenario where every resource comes in the circular economy.”

Mr. Thomas Kerr, Lead Climate Change Specialist, World Bank chaired and moderated the opening plenary session on Private Sector Perspectives on Indian Carbon Market (ICM). He emphasized that the Indian Carbon Market does not operate in isolation, as global carbon pricing policies will influence India’s industries. Businesses must prepare for these shifts. He highlighted the impact of the European Union’s Carbon Border Adjustment Mechanism (CBAM) on Indian exports, particularly in steel, aluminium, and other high-emission industries, stating, “The European Union’s Carbon Border Adjustment Mechanism (CBAM) will impact Indian exports, particularly in steel, aluminium, and other high-emission industries. This calls for urgent action in domestic carbon markets.” Encouraging India’s active participation, he added, “If you build it, they will come.”

Mr. Ashok Lavasa, Former Finance Secretary and Government Official, delivered a thematic address on Governance, Transparency, and Accountability in Climate Finance and Carbon Markets. His speech highlighted the complexities of global carbon markets and the challenges India faces in developing a robust system. Emphasizing key factors for success, he stated, “Strong MRV frameworks, fair benefit distribution, and strategic market alignment are crucial to India’s success in the carbon economy. International collaboration is necessary, but India must develop policies tailored to its own needs and challenges.”

The second day of the conference featured thematic addresses and a series of plenary sessions led by senior government officials and industry experts. Key discussions focused on: Incentivizing Renewable Energy developers through Carbon Markets, Development in Article 6 and Opportunities for India, Bringing Price Transparency in Global Carbon Marketplace, Role of Ecosystem-Based Interventions in Achieving Net-Zero Goals, Climate Tech Startups for Sustainable Development, and Leveraging finance for the deployment of clean technologies.

The two-day event witnessed robust participation from key Indian ministries, including the Ministry of Power, Ministry of Environment, Forest and Climate Change, and the Ministry of Agriculture, Financial Institutions, Corporates, International NGOs, PSUs, etc. Approximately 80+ experts and 600+ delegates engaged in the conference’s discussion in the last two days, focusing on carbon market mechanisms, policy framework, climate finance and technologies. This demonstrates a coordinated, intergovernmental strategy, fostering synergistic collaboration and broad stakeholder participation, affirming India’s dedication to meet climate goals.

More than just a conference, Prakriti 2025 has distinguished itself as one of the most comprehensive and significant carbon market events for learning, sharing knowledge, and exploring opportunities for collaboration in the global effort to combat climate change. Prakriti 2025 will build on this momentum, marking a significant milestone in both India’s national climate agenda and the broader international climate discourse.

About BEE

The Government of India set up the Bureau of Energy Efficiency (BEE) on March 1, 2002 under the provisions of the Energy Conservation Act, 2001. The mission of the Bureau of Energy Efficiency is to assist in developing policies and strategies with a thrust on self-regulation and market principles, within the overall framework of the Energy Conservation Act, 2001 with the primary objective of reducing the energy intensity of the Indian economy. BEE coordinates with designated consumers, designated agencies and other organizations and recognises, identifies and utilises the existing resources and infrastructure, in performing the functions assigned to it under the Energy Conservation Act. The Energy Conservation Act provides for regulatory and promotional functions.

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